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HomeMy WebLinkAboutC-20-81 Sweet Flower RedactedApplicant (Entity) Information Application Type Proposed Location Commercial Cannabis Business Permit Application C-20-81 Submitted On: Dec 04, 2020 Applicant Timothy Dodd 3109952299 katie.whinnery@sweetflower.com Applicant (Entity) Name: Sweet Flower Fresno 2, LLC DBA: -- Physical Address: 4210 Old Topanga Canyon Road City: Calabasas State: CA Zip Code: 91302 Primary Contact Same as Above? Yes Primary Contact Name: Timothy Dodd Primary Contact Title: CEO Primary Contact Phone: 3109952299 Primary Contact Email: tim@sweetflower.com HAS ANY INDIVIDUAL IN THIS APPLICATION APPLIED FOR ANY OTHER CANNABIS PERMIT IN THE CITY OF FRESNO?: Yes 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: Limited Liability Company Property Owner Name: Jagat Badhesha / VRG Investment Trust Proposed Location Address: 3150 E Olive Ave City: Fresno State: CA Zip Code: 93702 Property Owner Phone: Property Owner Email:Assessor's Parcel Number (APN): 45402132 Proposed Location Square Footage: Supporting Information Application Certification 5700 List all fictitious business names the applicant is operating under including the address where each business is located: Not applicable 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: Culver City, CA - Sweet Flower Culver, LLC was one of the highest-scoring applicants for a cannabis retail storefront in July 2019. The store is scheduled to open in early 2021. Pasadena, CA – Sweet Flower Pasadena, LLC was one of the highest-scoring applicants in June 2019. License pending final approval to open in 2021. Stanton, CA - Sweet Flower Stanton, LLC submitted a cannabis retail storefront application at the end of October 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 CEO Please note: the issuance of a permit will be determined based on the application you submit and any major changes to your business or proposal (i.e. ownership, location, etc.) after your application is submitted may result in a denial. All applications submitted are considered public documents for Public Records Act request purposes. For details about the information required as part of the application process, see the Application Procedures & Guidelines, City of Fresno Municipal Code Article 33 and any additional requirements to complete the application process. All documents can be found online via this link. For questions please contact the City Manager’s Office at 559.621.5555. INDEMNIFICATION AND HOLD HARMLESS AGREEMENT FOR COMMERCIAL CANNABIS BUSINESS PERMIT APPLICATION To the fullest extent permitted by law, the City of Fresno (City) shall not assume any liability whatsoever with respect to having issued a commercial cannabis business permit pursuant to Fresno Municipal Code Section. 9-3333 or otherwise approving the operation of any commercial cannabis business or cannabis retail business. In consideration for the submittal of an application for a commercial cannabis business permit application and/or issuance of a cannabis business permit, and to the furthest extent allowed by law, Applicant does hereby agree to indemnify, hold harmless and defend the City and each of its officers, officials, employees, agents and volunteers from any and all loss, liability, fines, penalties, forfeitures, costs and damages (whether in contract, tort or strict liability, including but not limited to personal injury, death at any time and property damage) incurred by City, Applicant or any other person, and from any and all claims, demands and actions in law or equity (including reasonable attorney's fees and litigation expenses), arising or alleged to have arisen directly or indirectly out of the issuance of a cannabis business permit. Applicant’s obligations under the preceding sentence shall not apply to any loss, liability, fines, penalties, forfeitures, costs or damages caused solely by the gross negligence, or caused by the willful misconduct, of City or any of its officers, officials, employees, agents or volunteers. Applicant must, at the time of permit issuance, maintain insurance at coverage limits and with conditions thereon determined necessary and appropriate from time to time by the City Manager. Applicant shall conduct all defense at his/her/its sole cost. The fact that insurance is obtained by Applicant shall not be deemed to release or diminish the liability of Applicant, including, without limitation, liability assum ed under this Agreement. The duty to indemnify shall apply to all claims regardless of whether any insurance policies are applicable. The duty to defend hereunder is wholly independent of and separate from the duty to indemnify and such duty to defend exists regardless of any ultimate liability of Applicant. The policy limits do not act as a limitation upon the amount of defense and/or indemnification to be provided by Applicant. Approval or purchase of any insurance contracts or policies shall in no way relieve from liability nor limit the liability of Applicant, its officials, officers, employees, agents, volunteers or invitees. City shall be reimbursed for all costs and expenses, including but not limited to legal fees and costs and court costs, which the city may be required to pay as a result of any legal challenge related to the city's approval of the applicant's commercial cannabis business permit. The City may, at its sole discretion, participate at its own expense in the defense of any such action, but such participation shall not relieve any of the obligations imposed hereunder. This Indemnification and Hold Harmless Agreement shall survive the expiration or termination of the Application and/or Permit. The undersigned acknowledges that he/she (i) has read and fully understands the content of this Indemnification and Hold Harmless Agreement; (ii) is aware that this is a contract between the City and Applicant; (iii) has had the opportunity to consult with his/her attorney, in his/her discretion; (iv) is fully aware of the legal consequences of signing this document; and (v) is the Applicant or his/her/its authorized signatory. Signed on this day of 2020. Applicant Signature City Employee Signature Print Name and Company Name Print Name Address Title Telephone Number Telephone Number 4210 Old Topanga Canyon Road, Calabasas, CA 91302 Timothy Dodd, Sweet Flower Fresno 2 LLC 01 December DocuSign Envelope ID: B3AE730C-DF91-42AC-9137-1DAB006908A4 SWEET FLOWER HERITAGE Sweet Flower Fresno 2 LLC 3150 E. Olive Avenue | Council District 7 Cannabis Retail Application 2BY COVER LETTER December 4, 2020 Dear Mayor, City Council Members, and City Staff: As the Chief Executive Officer and Co-founder of Sweet Flower and Sweet Flower Fresno 2, LLC, I am delighted to enclose Sweet Flower’s application for a retail dispensary license in the City of Fresno. The City of Fresno has a significant opportunity to build a best-in-class can-nabis retail market in the city and to serve as an example to others of how this can be done. As the City now sets forth, from what is truly an open canvas on the creation of this vibrant new cannabis market across its diverse city and community, we offer our wholehearted support and endorsement of this vision. To achieve this goal requires commitment from and collaboration with the most responsible, best-in-class cannabis retailers who can bring best-in-class teams, operations, and management practices to the city. Given our excellent track record, our industry-leading management team, our depth of experience in launching new retail destinations in new markets, and in winning competi-tive licenses in blue-sky markets, Sweet Flower is such a retailer. Sweet Flower is the largest independent cannabis retailer in Southern Cali-fornia. Since our inception in 2018, we have been awarded more licenses in competitive licensing processes than any other California retailer, have opened more new locations in Southern California than any other retailer, and we look forward to creating a responsible and community-focused cannabis retail busi-ness in Fresno. Sweet Flower is independently held and owned by California natives, and we operate with an unfailing commitment to meaningful, hands-on community engagement across all our stores and our entire company, beginning with me, as CEO and Co-founder. Our values, which we practice daily, are community engagement, public health & safety, trust & transparency, and inclusivity & diversity. We are active, local, and highly responsive operators. We will remain focused on the welfare and well-being of Fresno and of all the communities in which we operate in Cali-fornia. Our commitments to Fresno include: • Responsiveness - Sweet Flower’s vision will operate with the ongoing input and engagement of our community. Engaging the Fresno community is a priority for us. We have an open-door policy to hear about and address suggestions, questions, and concerns. • Honesty & Integrity - Sweet Flower is open and transparent. We own and operate all our businesses at the highest levels of honesty and integrity in all our actions. ueritage SWEET FLOWER "j 3BY COVER LETTER • Accountability - Sweet Flower takes accountability to our community, our customers, and our city seriously. We take responsibility for being leaders and demonstrate best practices within cannabis retail and the retail industry as a whole. Our operations in every city in which we operate are a privi-lege and a partnership with our regulators at the local, city, and state level. • Innovation - The legal cannabis industry exists because of the innovative work of California legislators, operators, and voters. We are a recognized leader and a defining business model in a new industry. Sweet Flower has developed cutting-edge engagement and education platforms and will con-tinue to innovate as the industry evolves. • Diversity & Inclusivity - Sweet Flower leads by example. We hire from our communities and strive to reflect the best character of our communities in everything we do. Our diverse staff are trained to treat all customers and fellow employees with respect and sensitivity. Sweet Flower is focused and intentional, ensuring the communities we operate in truly align with our values and vision—which is why we’ve chosen to apply in Fresno. We look forward to making a home in Fresno and to building the communi-ty-focused, highly compliant, and responsible cannabis retail business that the residents of Fresno so richly deserve. Thank you for your consideration. I am available at your convenience to dis-cuss further. Sincerely, Timothy DoddSweet Flower Fresno 2, LLCCEO/Co-Founder10000 Culver Blvd.Cu 90232P: tim er.com FLOWE R • 0 • • ueritage SWEET FLOWER "j 4BY TABLE OF CONTENTS 1. BUSINESS PLAN 1.0. Introduction 1.1. Owner Qualifications 1.1. Owner Resumes 1.2. Budget 1.3. Proof of Capitalization 1.4. Pro Forma 1.5. Hours of Operation & Opening & Closing Procedures 1.6. Daily Operations 1.6.1.i. Customer Check-In Procedures 1.6.1.ii. Location & Procedures for Receiving Deliveries 1.6.1.iii. Point-of-Sale 1.6.1.iv. Number of Customers 1.6.1.v. Product Line 1.6.1.vi. Delivery 1.7. Customer Product Handling Procedures 1.8. Customer Education 1.9. Marketing 2. SOCIAL POLICY & LOCAL ENTERPRISE PLAN 2.1. Living Wage 2.2. Employee Benefits 2.3. Compensation & Continuing Education & Employee Training 2.4. Recruitment 2.5. Local Management 2.6. Number of Employees, Titles, & Responsibilities 2.7. Labor Peace Agreement 2.8. Workforce Plan 2.8.1. Local Hiring 2.8.2. Continuing Education 2.8.3. Living Wage 2.9. Social Equity Business Incubator 3. NEIGHBORHOOD COMPATIBILITY PLAN 3.1. Addressing & Responding to Complaints 3.2. Avoiding Becoming a Nuisance 3.3. Odor Mitigation 3.4. Potential Sources of Odor 3.5. Odor Control Devices 3.6. Odor Mitigation Training & System Maintenance 3.7. Waste Management Plan 06 09 11 35 37 39 43 47 47 49 52 54 55 63 67 69 71 74 76 77 81 87 89 90 95 99 99 101 102 103 104 107 111 111 112 113 114 ueritage SWEET FLOWER "j 5BY TABLE OF CONTENTS 4. SAFETY PLAN 4.1. Fire Prevention & Suppression Consultant 4.1.1. General Safety Approach 4.2. Accident & Incident Reporting Procedures 4.3. Evacuation Routes 4.4. Fire Extinguishers & Other Fire Suppression Equipment 4.5. Procedures & Training for Fire & Medical Emergencies 4.6 COVID-19 Precautions & Training 5. SECURITY PLAN 5.0. Security Plan Introduction 5.1. Security Consultant 5.2. Premises Security Diagram 5.2.1. Premises Security Diagram 5.2.2. Premises Security Diagram 5.2.3. Description of Cannabis Activity in Each Area of the Premises 5.2.4. Limited-Access Areas 5.2.5. Video Surveillance Cameras 5.3. Intrusion Alarm & Monitoring System 5.4. Cash Handling Procedures 5.5. Security Guards 5.5.1. Number of Guards 5.5.2. Guard Hours 5.5.3. Guard Locations 5.5.4. Guards’ Roles & Responsibilities 6. LOCATION 6.1. Location Description 6.2. Location Photos 6.3. Premises Site Diagram 6.3.1. Premise Site Diagram 7. COMMUNITY BENEFITS & INVESTMENT PLAN 7.1. Social Responsibility Plan 7.1.1. Expungement Clinics or Outreach Services 7.1.2. Environmentally Sustainable Business Model 7.1.3. Utilizing Blighted Areas of the City 7.2. Public Health Outreach & Educational Program 7.3. Contributions to the Fresno Community Reinvestment Fund 8. CONCLUSION 117 117 120 121 122 122 127 129 130 131 132 133 134 136 140 143 145 146 146 146 147 147 148 154 156 157 159 168 169 172 175 176 177 ueritage SWEET FLOWER "j 6 BUSINESS PLAN 1.0. Introduction Sweet Flower is the largest independent cannabis retailer in Southern California and the leading, fastest-growing inde-pendent retailer in California. We are Californians, based in Culver City, CA, and we work exclusively in California. No retailer has more experience creating new retail destinations, building store teams, establishing best-in-class operations, and operating at the highest levels of compliance and integrity than Sweet Flower. Since our inception in 2018, we have:• Successfully launched, owned, and operated more new retail stores in premium locations in Southern California than any other cannabis retailer: • Sweet Flower Melrose• Sweet Flower Studio City • Sweet Flower Westwood• Sweet Flower Downtown LA (also a manufacturing and distribution hub) • Been awarded more competitive licenses in the most competitive license application processes (Culver City and Pasadena) than any other California retailer; in each case scoring ahead of multiple operators from both inside California and from other states• Created over 120 -paying jobs in Southern California • Contributed over in community benefits to the communities we serve throughout Southern California• Paid in excess of te and local taxes • Completed over $ in compliant cannabis sales• Served over 200,0 rs across our retail stores and via our in-house delivery program• Built one of California’s most recognized and most respected cannabis retail brands, with more five-star cus-tomer reviews than any competing retailer; our brand has been featured in People, US Weekly, the LA Times, and on HBO Max and NBC, to name a few• Served on the boards of nonprofits serving our communities and the cannabis industry alike – the Culver City Chamber of Commerce, Cannabis for Black Lives, and the Black Cooperative Investment Fund (BCIF) In Fresno, Heritage by Sweet Flower will:• Create a minimum of 21 new, well-paying jobs when we open for business• Employ 100% of our workforce from Fresno residents (who have established residency before submitting an employment application with Sweet Flower).• Recruit individuals for 50% of the total annual work hours performed at the business who meet the criteria list-ed in the Social Policy Section 9-3316 (b) (1) of the Fresno M l Code.• Establish a Community Investment Fund, which will grow to annually by our third year of operation.• Invest 25% of our Comm nvestment Fund into the Fresn munity Reinvestment Fund. We estimate this contribution will be by our third year of operation.• Serve as a Social Equity s Incubator, offering our knowledge, expertise, and resources to local cannabis social ity businesses.• Pay $ in city taxes within our first year of operation. This will grow to by our third year of operation. 1.0. INTRODUCTION ueritage SWEET FLOWER "j 7 • Pay in state taxes with first year of operation. This will grow to by our third year of operation.• Su lly complete over in compliant cannabis sales within our ar of operation. This will grow to in sales by our th ar.• Ha erve and delight over 161,000 customers per year by our third year of operation. We bring a best-in-class management team with an industry-leading track record and a depth of leadership expe-rience in cannabis retail, traditional retail, and business operations. Our management team share backgrounds in cannabis retail and traditional consumer packaged goods retail, finance, law, marketing and advertising, technology, network operations, business operations, and investments. In addition to their over three decades of combined experience in the regulated cannabis industry in California, Sweet Flower leadership draws on many years of experience in leading business operations at Fortune 500 com-panies such as Target, Equinox, Spectrum/Time Warner Cable, Snap, Forever 21, Soul Cycle, Warner Bros. and Technicolor. Sweet Flower has strong corporate values rooted in trust and transparency, public health and safety, community engagement and diversity, and inclusivity. Our store team is incredibly diverse. Our management team is deeply involved on boards of nonprofits serving Black and Latinx communities in California. We have an unp track record of giving back to the commu-nities we serve. Since inception, we have donated more than to the communities we serve throughout Southern California. Sweet Flower operates only at the highest levels of integrity and compliance. Our Director of Compliance was previously the General Counsel for the Los Angeles Department of Cannabis Regulation. We have an unblemished record of strict compliance with all state and local regulations, and we have crafted and implemented best in class operating procedures to ensure ongoing compliance with all regulations and all health and safety ordinances. During COVID-19, as other retailers retracted their operations, we adapted to the crisis with a focus on public health and safety and ensuring safe access to cannabis in our communities. We were the first retailer in Los Angeles to be approved to offer curbside pick-up. We doubled and eventually quintupled our delivery program, affording convenient access to all. We implemented best-in-class safety procedures to allow our team and our customers to interact safely in-store. And we are the only retailer in Southern California to successfully launch a new store – Sweet Flower Westwood – during the pandemic. The City of Fresno has a “blank slate,” a significant opportunity to build a best-in-class cannabis retail market in the city and to serve as an example to others of how this can be done. As the City now sets forth on the creation of this vibrant new cannabis market across its diverse city and community, we offer our wholehearted support and endorsement of this vision. To achieve this goal requires commitment from and collaboration with best-in-class cannabis retailers who can bring best-in-class teams, operations, and management practices to the city. Sweet Flower is such an operator. In fact, no other operator in California has a better track record of establishing new cannabis retail locations and building new markets for cannabis retail. And no other operator has Sweet Flower’s track record of community engagement, giving back and working as partners with regulators, city councils, and local community groups. We are confident that we will build a best-in-class retail store in Fresno, collaborating with the City of Fresno and all other cannabis retailers selected in the City, to build a truly excellent cannabis retail market in Fresno, and to serve as that example to others. 1.0. INTRODUCTION ueritage SWEET FLOWER "j 8 We are a California-based retail dispensary and lifestyle brand focused on reinventing and modernizing the canna-bis consumer experience. We are exclusively focused on California. Our brand reflects a sophisticated approach to cannabis by a destigmatized customer experience, encouraging cannabis education, selecting a well-curated range of high-quality, locally-sourced products, and building a team of highly-trained sales professionals fully versed in all applicable local and state laws, rules, and regulations. The California market is one of the largest legal cannabis markets in the world, which we believe is full of opportu-nities for innovation, customer education and engagement, and building deep, sustainable roots in the local commu-nities that we serve. To address these opportunities, we have assembled a uniquely qualified team of experienced retail, operations, marketing, compliance, and finance professionals who have a broad range of knowledge both in and outside of cannabis, with the financial resources to back our vision. Together, this team has over three decades of experience in the legal California cannabis industry. We operate our multiple California locations openly, honest-ly, and with the strictest regard for operational and regulatory compliance. We are active, local operators. We have deep community, family, and professional roots in California. We believe in giving back to each of the diverse and unique communities in which we operate. We have a long and demonstrable record of making significant civic and charitable impacts through donations, partnerships, and hands-on volunteer hours to groups working alongside us in the communities we serve. We serve the communities in which we operate by hiring locally, enacting robust community engagement efforts, and reinvesting directly. Our current locations in Southern California include Studio City, Melrose, Downtown Los Angeles Arts District, and Westwood Village. In addition, we are the top-scoring applicants in both Culver City and Pasadena, two of the most competitive appli-cation processes to date in California. As California natives, we strive to embody the essence of the Golden State—a focus on wellness, well-being, en-vironmental consciousness, and our community. We have chosen to open stores in communities that align with our vision. We firmly believe that Fresno’s diverse and vibrant community make an ideal home for Sweet Flower. Sweet Flower is a natural fit for the Fresno market. As Fresno continues to innovate as a community looking to its future, Sweet Flower will become a flagship retailer for Fresno, serving the growing local community, as well as commuters and tourists. Fresno is one of the most diverse cities in California. Its census-estimated 2020 population of 542,000 includes Basque, Asian, Indian, Armenian, Hispanic, Hmong, Chinese, Portuguese, and Japanese resi-dents. Sweet Flower is dedicated to providing a welcoming experience for all. The need for equitable access to cannabis products must be addressed and means ensuring all neighborhoods and their residents, regardless of economic standing or location, have local, safe, legal access to these products. The un-regulated market poses significant risk to public health and safety. Price barriers and lack of access to legal, regulat-ed cannabis often drive consumers to the unregulated market. One’s location and economic standing should not be a factor in legal access to quality, affordable cannabis but it often is. To address this, we are excited to launch a new Sweet Flower store concept in the City of Fresno—Heritage by Sweet Flower. Heritage by Sweet Flower has designed a consumer experience that caters to and addresses economic inclusion without sacrificing quality of products, customer experience, or consumer and neighborhood safety and security. Heritage is an open, easy to shop retail environment stocked with a wide selection of quality products. These prod-ucts are offered at a range of price points designed to accommodate all tastes, budgets, consumption methods, and desired effects. The Heritage customer most likely has some cannabis knowledge, so our mission is to provide them with products that exceed their expectations in quality and price point. 1.0. INTRODUCTION ueritage SWEET FLOWER "j 9 The goal of Heritage by Sweet Flower is to ensure that legal, regulated cannabis is available to all who benefit from it. According to a recent study by Arcview Market Research and BDSA, 64% of traditional medical canna-bis patients now shop recreationally to treat a variety of health and medical issues without an official prescription. The same study states that 71% of all cannabis consumers consume cannabis regularly for recreational and social reasons as a way to celebrate, relax, connect and experience fellowship with friends and community. Heritage by Sweet Flower is designed to cater to these markets, providing safe and equitable access to all. Fresno’s General Plan describes the city as Sweet Flower views it also: Overall, Fresno possesses a number of assets that make it attractive to business and industry. These include its central location on the West Coast and ac-cess to major transportation corridors; airports; affordability; good neighborhoods; and training and educational opportunities that occur at institutions such as California State University, Fresno. The key to capitalizing on these assets is to market them effectively. Not only do we agree, we would propose to work with the city to market these significant benefits of Fresno as broadly as possible. We would build a Community Investment Plan that allocates 2% of profits directly to Fresnos communities—supporting nonprofits, civic organizat nd the Fresno Community Reinvestment Fund. We be-lieve our Community Investment Fund will grow to annually by our third year of operation. This will help achieve Fresno’s goal of regulated cannabis benefitin stakeholders. We would honor the clear directives in Fresno’s landmark cannabis ordinance to make social policy, social equity, and benefits for all of Fresno a core tenant of our business plan. Our intended location, 3150 E. Olive Avenue in Central Fresno, will serve a diverse population, provide local jobs, and be an active part of the property’s revitalization and surrounding neighborhood. With increased security and commerce, Heritage by Sweet Flower will benefit the entire community. 1.1. Owner Qualifications Resumes are not to exceed two (2) pages per owner. Sweet Flower is uniquely qualified to operate successfully in Fresno due to the leadership team’s cumulative expe-rience and excellence in various fields, including retail cannabis, our history of compliance, an unwavering com-mitment to community investment, and a shared vision to destigmatize and elevate the retail cannabis market. Since launching in 2018, Sweet Flower has launched multiple cannabis stores and won multiple applications in competitive municipalities. In 2018 Sweet Flower acquired retail cannabis licenses in diverse, prime retail locations within the City of Los Angeles. In 2019 the team submitted competitive applications in Culver City and Pasadena. Sweet Flower was a top placing applicant in both of these municipalities. Both the Culver City and Pasadena ap-plication processes were incredibly competitive, and it was an honor to secure a top score above major multi-state operators from outside California. Sweet Flower currently owns and operates four locations—Studio City, Melrose, Downtown Los Angeles Arts District, and Westwood Village. Our Culver City store is slated to open by early 2021, and Pasadena will follow in mid-2021, pending final city permitting. Sweet Flower would be proud to open Heri-tage by Sweet Flower as its seventh location if awarded a license. 1.1. OWNER QUALIFICATIONS ueritage SWEET FLOWER "j 10 1.1. OWNER QUALIFICATIONS Sweet Flower is a cannabis company committed to its core values and the values embraced by the communities it inhabits, serves, and co-exists within. The driving vision and intention of Sweet Flower is to establish a presence that goes beyond the marketplace and into the social and cultural fabric of the communities it serves. Strong Professional Track RecordOur leadership and management team brings over 150 years of combined experience in California-based cannabis retail, traditional retail, media, technology, finance, private equity, real estate development and management, retail management and development, from start-up through fully-matured business, as well as extensive cannabis opera-tions experience. Comprising operations leaders who have flourished at the highest levels in their respective fields, our team draws from deep operational and financial experience at Fortune 500 companies. During their tenure, the Sweet Flower team has secured meaningful growth and economic profit and addressed meaningful operational issues and challenges, positioning them well for the myriad issues facing the growing California cannabis industry. In addition, Sweet Flower’s management team has significant finance, capital, and investment experience, oversee-ing in excess of $200B of investments and operations. Sweet Flower ’s high standards and our team’s unique skill set have raised, and continue to raise the bar for retail cannabis in California. ueritage SWEET FLOWER "j 11 Timothy Dodd Co-Founder, & Chief Executive OfficerTimothy Dodd leads Sweet Flower with vision and significant experience in business oper-ations in cannabis, retail, media, and telecommunications. He has over two decades ofational experience in building and growing venture businesses from inception to the $ revenue across various industries (retail, media, networks). Mr. Dodd has a successful record of investments in venture companies from seed to Series C stage. Prior to founding and leading Sweet Flower, Mr. Dodd was head of Corporate Development and Strategy at Tech-nicolor, where he led Corporate Development, Strategy, M&A, Investments, and Partnerships worldwide. He was responsible for the management of Technicolor’s innovation and investment portfolio across all business units. He ed Technicolor’s Drive 2020 gy, including acquisitions of Cisco Connected Devices Business Unit ($ July 2015) and The Mill ($ September 2015). As Vice President of Corporate Business Development and Strategy at Warner Bros., Mr. Dodd led digital, technol-ogy, and new business initiatives with a focus on digital and direct-to-consumer businesses, M&A, and investments worldwide. Mr. Dodd is lauded for his forward-thinking strategies aimed at long-term growth and innovation, which keep the companies he works with a step ahead of consumer trends. He brings proven leadership tactics and a welcome crit-ical eye to the cannabis industry. As founder and CEO, Mr. Dodd has accomplished significant success in just two years of entering the cannabis space primarily due to his hands-on leadership. Mr. Dodd has directed the 100% year over year growth of Sweet Flower by carefully selecting markets to operate in to ensure they will respond to and benefit from the brand’s presence in their communities. Mr. Dodd is actively involved in all of Sweet Flower’s day-to-day operations, including defining the company’s culture and instituting customer service policies. Mr. Dodd oversees the budget and regularly convenes the Community & Neighborhood Advisory Committees. He encourag-es transparency, diversity, inclusivity and equality throughout the organization and sets the tone by welcoming team feedback and ideas for improvements. Mr. Dodd works out of the Culver City Corporate Headquarters and visits each Sweet Flower retail location regularly. An immigrant himself, Mr. Dodd’s vision for Sweet Flower is to build a best-in-class cannabis retailer giving back to the communities it serves. Additionally, Mr. Dodd serves as a board member for the Culver City Chamber of Commerce and the Black Co-operative Investment Fund (BCIF), a nonprofit whose mission is to create social change for the Black community through the primary strategy of building assets and wealth. 1.1. OWNER QUALIFICATIONS ueritage SWEET FLOWER "j 13 1.1. OWNER QUALIFICATIONS Michael Thomson Co-Founder, & ChairmanMr. Thomson is responsible for strategic guidance, fund management, allocation, and guiding sustainable growth strategies at Sweet Flower. Mr. Thomson develops and implements the brand growth model and market research initiatives and works on managing the retail opera-tion’s capital and budget. Mr. Thomson brings a thirty-year plus, proven skillset from working at the highest levels in regulated industries, including in private equity, banking, corporate finance and the U.S. Treasury Department. This experience has ensured Sweet Flower’s commitment to regulatory compliance at all levels is truly best-in-class. Mr. Thomson brings a robust knowledge of federal tax regulations and policy from his role as Tax Legislative Counsel in the U.S. Treasury Department during the Clinton Administration. Most recently, Mr. Thomson served as the Executive Vice President and General Counsel to Lone Star Funds/Hudson Advisors, LLC, a leading interna-tional private equity fund. At Lone Star, Mr. Thomson was responsible for oversight of all legal matters relating to the funds, their invest-ments, portfolio companie well as the affiliated asset management company. During his tenure, Lone Star acquired approximately $ in assets. As a sitting member of Lone Star’s Investment Committee and the firm’s Management Committee, Thomson was directly involved in selecting and managing all significant investments and managed over 1,000 employees worldwide. Upon entering the cannabis space in 2018, Mr. Thomson has guided Sweet Flower from concept to successful execution. He understands the volatility and opportunity of emerging markets. Mr. Thomson’s grounded re-search-based approach is centered on best-in-class corporate governance and viable growth. This has made Sweet Flower a cannabis brand with long term viability, protected from the fluctuations of short-term market trends. Mr. Thomson is building a sustainable cannabis brand by instilling best-in-class compliance for all levels of operations. His approach to responsible leadership benefits the company, employees, and the communities we serve. r.. U)MOU lUMS 8Jun.1a\\ 15 1.1. OWNER QUALIFICATIONS CORPORATE LEADERSHIP TEAM Mr. Dodd and Mr. Thomson have brought together a unique and qualified leadership team with diverse experience to develop and operate Sweet Flower’s retail stores. Our CEO, Timothy Dodd, and members of our Corporate Leadership team will be on-site in Fresno weekly. Most Corporate Leadership members will visit Fresno at a mini-mum of once per month, with a rotating schedule of Corporate Leadership members visiting every week.. Jeffrey Cohen - Chief Financial Officer - Jeffrey Cohen has specialized in canna-bis tax and accounting compliance for almost a decade. Cohen’s expertise ensures Sweet Flower’s finances, including state and local taxes, record-keeping, financial reporting, audits, payroll, and employee benefits, all run transparently and compliantly. Mr. Cohen is also responsible for overseeing the financial distributions from our Community Investment Fund. Justin Jones - Vice President of Operations - Justin Jones is a senior retail opera-tions executive with two decades of experience leading 2,000+ person retail teams in mul-tiple states. Mr. Jones is a West Point graduate who spent five years in the United States Army, including a deployment to Iraq in 2004. His passion for the industry comes from his experience using cannabis to better his life upon returning from combat service. Before joining Sweet Flower, Mr. Jones led store operations for MedMen’s largest volume and most profitable district. Before working at MedMen, he led multi-store operations across multiple states for Target. During his tenure at Target, he ove nine high volume stores and one new format store with a combined sales volume of $ per year with 1,900 team members in the Long Beach market. He also delivered b n- s numbers leading the district to top results in fulfillment of online orders resulting in $ in incremental sales in 2017. He achieved Target’s Golden Contribution by exceedi ales goals while performing under budget each year. Mr. Jones led the company in team member volunteer hours and completed over 4,000 hours giving back to the community through various com-munity service events. While at MedMen, Mr. Jones developed and piloted the company’s first home delivery system, resulting in a 5% sales increase in each store executing the program. He also Increased sales by 18% through goal setting, strategic hiring, sales training, and product knowledge. He worked closely with West Hollywood and Culver City to obtain permanent licenses for stores, adopting best practices to meet ever-changing government regulations. Mr. Jones’s experience in retail is an invaluable asset to Sweet Flower. He has firsthand knowledge of compliance from running 55 pharmacies and developing cannabis retail strategies at MedMen, making him an expert in best practices. As VP of Operations at Sweet Flower, he develops retail strategies that drive innovation, compliance, and custom-er service. He is known for his ability to quickly engage and create teams, build strategic alignment up and down the retail chain through operational efficiency, and drive sales. He works with the Chief Marketing Officer and the Finance team to develop sales strategies. He oversees the operation of all Sweet Flower retail stores, institutes our standard operat-ing procedures (SOPs), and manages the design and development of new retail locations. Mr. Jones works at the current Culver City Corporate Headquarters and visits each Sweet Flower retail location regularly. ueritage SWEET FLOWER "j 16 1.1. OWNER QUALIFICATIONS Lauren Banuelos - District Manager - Lauren Banuelos is a California native, gradu-ating from California State University, Long Beach with a B.A. in Economics and a minor in Entrepreneurship. Mrs. Banuelos is a proud cannabis advocate and feels she plays a vi-tal role in the ever-changing legal market, paving the path for women in this industry. Mrs. Banuelos’s background consists of seven years with Target, where she developed strong leadership skills to lead a team of Store Managers. She became highly knowledgeable in human resources policies and the importance of community, inclusivity, execution, and profitability. Mrs. Banuelos then entered the cannabis industry as Store Manager of Med-Men’s flagship store in West Hollywood. She was heavily involved with educating team members on compliance and Bureau of Cannabis Control (BCC) regulations. She launched METRC and became the company’s training resource for this and many other initiatives. Her expertise grew as she became Occupational Safety and Health Administration (OSHA) certified, with an emphasis on cannabis. She received her certification from the OSHA Training Institute at the University of California San Diego. As the District Manager of Sweet Flower, Mrs. Banuelos directly oversees all Store Man-agers and their respective locations. She is responsible for hiring, developing, and retain-ing store management. She is the catalyst between corporate and store communication, ensuring strategic campaigns and initiatives are planned and executed appropriately. Her daily duties involve connecting with every store to ensure they are prepared for that day’s operations. She is also responsible for being the final sign off on managing talent within all the stores, including hiring, terminations, and development. She visits every site weekly and offers insight and mentorship to each of her Store Man-agers. Mrs. Banuelos has regular interaction with all Sweet Flower team members and vendors, including Sales Associates, Delivery Drivers, Leads, Inventory Clerks, Assistant Managers, and Security Personnel. She reports directly to the Vice President of Oper-ations, Justin Jones, and meets with him weekly to discuss goals, growth, and training opportunities. Yelena Katchko - Chief Legal & Regulatory Advisor - Yelena Katchko is a found-ing member and equity partner of Katchko, Vitiello & Karikomi, PC. Prior to attending law school, she attended the University of California, Los Angeles, for her undergraduate studies and completed a bachelor’s degree in Political Science with honors. Mrs. Katchko attended the Pepperdine University School of Law, where she received her Juris Doctor-ate. Mrs. Katchko focuses on transactional matters, licensing, and regulatory compliance, focusing on California’s commercial cannabis industry. Mrs. Katchko’s efforts are now dedicated to transitioning her clients to the new regulated and licensed framework. Backed by nine years of dedicated cannabis experience, Mrs. Katchko can represent all types of cannabis businesses, including retailers, cultivators, manufacturers, and distributors. Mrs. Katchko’s experience includes shaping medicinal and adult-use cannabis regulations in both the City of Los Angeles and the State of California through pro bono affiliations, local alliances, and town halls. She has developed significant experience in local govern-ment matters by being an integral part of discussions with officials on the ever-changing cannabis regulatory landscape and working closely with lobbyists to advocate for her clients. Mrs. Katchko also serves as affiliated counsel to the United Cannabis Business Association (UCBA) Trade Association. ueritage SWEET FLOWER "j 1. BUSINESS PLAN 17BY 1.1. OWNER QUALIFICATIONS Mrs. Katchko advises the Sweet Flower team regarding all regulatory and licensing compliance matters. She communicates with key local and state regulatory agencies and provides regular updates on the continually evolving regulatory landscape of the cannabis industry. Alex Freedman - Director of Compliance - Alex Freedman served two years as Gen-eral Counsel to the Los Angeles Department of Cannabis Regulation and the Los Angeles Cannabis Regulation Commission. In that role, Mr. Freedman was the City of Los Ange-les’ principal legal advisor on all cannabis-related regulatory matters. He aided in drafting the city’s cannabis licensing ordinances and regulations and guiding the Department of Cannabis Regulation (DCR) as it launched the most extensive municipal, commercial can-nabis regulatory and licensing program in the world. He embraced the opportunity to play a significant role in the historic cannabis legalization movement in Los Angeles. He came to be recognized as one of the leading authorities on cannabis policy in California. As Director of Compliance for Sweet Flower, Mr. Freedman relies on the unparalleled experience he gained as one of the critical regulators of the most important cannabis market in the world to help navigate the ever-changing cannabis regulatory landscape in California and beyond. He is uniquely qualified to provide nuanced advice only a former regulator can offer on the risks and opportunities in increasingly complex licensed canna-bis markets. Mr. Freedman attended the University of California, Berkeley School of Law, where he received his Juris Doctorate. Prior to attending law school, Mr. Freedman attended the University of California, Davis, where he completed his bachelor ’s degree with high honors. He is also the co-founder of the Cannabis Section of the Los Angeles County Bar Association. Matthew Carroll - Security Director - Matthew Carroll has worked in private security management since 1995, serving in various capacities from uniformed services through executive leadership. He served in public law enforcement from 1997-2001 with the Sacramento County Sheriff’s Department and later with the Sacramento-Yolo Port District Police Department from 2001 until its dissolution in late 2006. Since the legalization of adult-use cannabis businesses in California, Mr. Carroll has been highly sought out by the commercial cannabis community for planning services. To date, Mr. Carroll has developed over 320 cannabis business security plans. He is currently under contract with the Dixon Police Department and the Benicia Police Department as a cannabis security consultant. Carroll assists with oversight of Sweet Flower security operations for all retail storefronts, including managing security contracts. He regularly reviews and updates the security plans to ensure that contractors receive site-specific training and seamlessly integrate into the retail environment. Mr. Carroll also aids in an employee security training program based on industry best practices. 18 1.1. OWNER QUALIFICATIONS Kiana Anvaripour - Chief Marketing Officer - As Chief Marketing Officer of Sweet Flower, Kiana Anvaripour brings over 17 years of experience building premium interna-tional brands with in-depth knowledge of wholesale direct-to-consumer business models, retail expansion, e-commerce, and luxury creative brand development. Prior to joining Sweet Flower, she successfully led marketing for Beboe Brands, hailed as the “Hermes of Cannabis,” from launch to acquisition by GTI (OTC: GTIBF), overseeing all THC and CBD marketing and brand initiatives, including concept, strategy, launch, and execution. Previously, Mrs. Anvaripour was the founder and CEO of dMondaine, a line of luxury lingerie that reached international and high-end retailers, including Neiman Marcus, Barneys, Selfridges, Harvey Nichols, and Net-a-Porter. dMondaine was regularly featured in Women’s Wear Daily (WWD), Italian Vogue, Vogue UK, Vogue US, Lucky Magazine, Cosmopolitan Magazine, People Style Watch, and more. Mrs. Anvaripour’s career began in London, England, where she held numerous positions in luxury fashion, having worked for Alexander McQueen, Preen, and Roland Mouret. Kiana Anvaripour leads marketing and brand initiatives, including concept, strategy, launch, and execution. She creates genuinely thoughtful and compliant strategies that align with our brand and communities. She works to share Sweet Flower’s mission: Set a new standard for modern cannabis retail that is inclusive, diverse, and approachable by all. Her daily duties include social media management, design and curation of all print and digital assets, brand partnerships, events in and outside of the stores, experiential brand education, website management, community management and education, product promotion creation, digital marketing, email marketing, in-store merchandising, and branded merchandise de-velopment. Ms. Anvaripour works at the Culver City Corporate Headquarters and spends time in each retail location weekly. Michelle Mendoza - Senior Buyer - Michelle Mendoza, Sweet Flower’s Senior Buy-er, works to identify brands with best-in-class cultivation practices and align with our mis-sion and target customer. Ms. Mendoza is a seven-year veteran of the cannabis industry. She previously served as Store Manager for LAPCG (Los Angeles Patient’s & Caregiver’s Group) for nearly a decade, one of the longest operating legal Cannabis dispensaries in California, the longest operating legal dispensary in Los Angeles county, and an indus-try-wide staple. At LAPCG, Ms. Mendoza oversaw all day-to-day regulatory and business operations as well as their highly acclaimed product curation. At Sweet Flower, she over-sees brand relations and product acquisitions for all locations. Her in-depth understanding of cultivation methods, technology, and sourcing will ensure Sweet Flower is curating the best products from California’s most respected producers of high quality, organic cannabis. Ms. Mendoza ensures all companies we work with are fully licensed and compliant, from growing methods to testing and packaging. Additionally, Ms. Mendoza is dedicated to ensuring Sweet Flower carries several brands owned by Black, Indigenous, and People of Color (BIPOC) and LGBTQ+ individuals. She believes firmly that representation matters and is a Board Member of the Cannabis for Black Lives organization. She is doing her part to diversify the cannabis industry, which has long been lacking in this area. With a background in education, Ms. Mendoza fundamentally understands the importance and responsibility of educating people. She feels this sentiment is no different in looking ueritage SWEET FLOWER "j 19 1.1. OWNER QUALIFICATIONS at cannabis—there is so much to understand about this plant’s power as a medicine. She gladly welcomes her role in conveying Sweet Flower’s message to the community. Ms. Mendoza spends one day per week at each of our Sweet Flower locations. She feels dedicating time at each store is essential to understand the needs of customers and employ-ees alike. She believes each store location is a unique micro-climate. During these visits, Ms. Mendoza allocates time to speak with the Inventory Clerks and Inventory Managers, who are the gatekeepers of all product, as well as the Store Managers, Sales Associates, and customers. The feedback gained during these visits is highly beneficial in assessing each location’s unique product needs. Additionally, she has a Buying Meeting with the CEO each week to discuss trends and budget. Lynda Sandoval - Delivery & Inventory Manager - Lynda Sandoval oversees Sweet Flower Inventory Clerks and manages back-of-house operations, including receiving and outbound deliveries. As Sweet Flower’s Delivery and Inventory Manager, Ms. Sandoval manages operations related to all incoming and outgoing products. Her top priority is the team’s safety, and she works closely with Vice President of Operations Justin Jones and the Security Personnel to engineer seamless processes. She educates Delivery Drivers and the store management team on METRC, track-and-trace, and safety protocol. Ms. San-doval is tasked with the critical role of developing best practices for the safe and timely delivery of Sweet Flower’s meticulously curated products to consumers. Michael Gil - Loss Prevention Manager - As Loss Prevention Manager, Michael Gil is responsible for implementing and overseeing Sweet Flower’s Security Plan to protect employees, customers, and product. He ensures Cal/OSHA standards are met at each store and works with Store Managers on education and training employees on loss prevention and safety. Before joining the Sweet Flower team, Mr. Gil was with 24 Hour Fitness USA as Area Loss Prevention, where he oversaw 78 stores across seven districts, working with District Management, Area Human Resources, Risk Management, Corporate Sales, and Facilities Teams to manage loss prevention and ensure safety. Michael Gil’s role as Loss Prevention Manager at Sweet Flower requires collaboration with the management team and each Store Manager. In addition to investigating cash/banking discrepancies and product shortages, he regularly visits each store to educate team members on loss prevention matters, best practices, and safety standards. He also coordi-nates with third-party vendors, including on-site security and video surveillance providers, to limit risk and protect Sweet Flower stores and team members. Matt Harshbarger - Human Resources Manager - Matt Harshbarger is Sweet Flower’s Human Resources (HR) Manager. He is an MBA graduate with extensive lead-ership experience in Human Resource and Operations management. After completing his master’s degree, Mr. Harshbarger joined Forever 21 as their HR Operations Manager. In addition to recruiting and onboarding field management, Matt established objectives to lead his team to success—exceeding key performance indicators (KPIs) and ensuring successful field operations. Mr. Harshbarger joined Sweet Flower in early 2020. Since his arrival, he’s developed and deployed HR-related training for both management and in-store team members. Matt has developed protocols guiding Store Managers on compli ueritage SWEET FLOWER "j 20 1.1. OWNER QUALIFICATIONS ance, recruiting, retention, and HR best practices. As Human Resources Manager, Mr. Harshbarger leads and directs the HR department’s routine functions, including hiring and interviewing team members, administering pay, benefits, and leave, and enforcing company policies and practices. He is responsible for supporting Store Managers through ideas, best practices, and attainment of results. Mr. Harshbarger is focused on leading the management team in HR compliance, including re-viewing policies and procedures to ensure Sweet Flower is always up to date and accurate. Sarah Dale - Corporate Director of Community Affairs - Sarah Dale has a deep background in public affairs and community organizing. As Director of Community Affairs, Ms. Dale is charged with overseeing Sweet Flower’s comprehensive community investment and engagement programs. This includes working with CEO Timothy Dodd to identify nonprofit and community organizations to partner with and support at both the corporate and local level. She guides and supports each location’s dedicated Community Liaison and their community investment initiatives. Before joining Sweet Flower, Ms. Dale was a political consultant working on several successful campaigns at the state and local level, responsible for generating community support and investment programs for private clients in both development and municipal contracts. For the past five years, she has worked with numerous cannabis companies and brands designing community engagement programs. Sarah Dale has served on her neighborhood council in Los Angeles. She has written grants for several nonprofits, including an Annenberg Foundation grant for PATH (People Assist-ing The Homeless). She also co-founded the Echo Park chapter of Laundry Love, a nation-al neighborhood movement that partners with groups, schools, and local laundromats to wash the clothes and bedding of low-income or no-income families and individuals. Ms. Dale has served for the past seven years, most recently as chairperson, as an appointee for Los Angeles City Council District 13 on the Proposition K Oversight Committee. Ms. Dale enjoys that her role at Sweet Flower allows her to follow her passion for improving communities. ueritage SWEET FLOWER "j 21 1.1. OWNER QUALIFICATIONS CURRENT LOCATIONS Sweet Flower currently operates four stores in the City of Los Angeles and has been awarded licenses to open our fifth (Culver City) and sixth (Pasadena) stores under the Sweet Flower brand in 2021. Sweet Flower Studio City11705 Ventura Blvd., Studio City, CA 91604License #: C10-0000362-LICThis location was acquired in 2018 and rebranded and reopened as Sweet Flower Studio City in April 2019. We completed significant improvements to the location, including a complete remodel, which beautified the storefront and surrounding area, improving neighborhood safety, visibility (especially at night) and providing significant benefits and improvements to neighboring businesses and residences. Sweet Flower invested in staff training, ongoing compliance training, operational best practice training, new customer management systems, web and digital presences, advertising, marketing, and branding. In conjunction with Sweet Flower Studio City’s strong local customer base and excellent com-pliance track record, this location has established Sweet Flower as the new standard-bearer for Studio City retail cannabis. Sweet Flower Melrose8163 Melrose Ave., Los Angeles, CA 90046License #: C10-0000129-LICSweet Flower Melrose is a clear example of the success of the approach taken by Sweet Flower; a new, large dispensary operation on a prime section of Melrose Avenue in Los Angeles, across from Fred Segal and the Improv. Sweet Flower Melrose is our current flagship Los Angeles location. This location opened in April 2019. As with all Sweet Flower stores, Sweet Flower Melrose is entirely cannabis regula-tion-compliant, ADA compliant, has an open floor plan, is easily accessible, and visible from the street. We worked closely with Los Angeles City Council Member Paul Koretz and his office, our neighborhood council, and LAPD Senior Lead Officer in advance of opening to ensure our operations not only met but exceeded our community’s expectations. Sweet Flower Arts District (Downtown Los Angeles)614 Mateo St., Los Angeles, CA 90021License #: C12-0000039-LICSweet Flower Arts District is a 5,500 square foot compliant microbusiness facility with retail, distribution, and manufacturing operations. Sweet Flower Arts District is located in an emerging area of Downtown Los Angeles’ eclectic Arts District, in what was previously an unused warehouse in need of significant upgrade and investment. The totally refur-bished location opened in late 2019 after a significant capital investment by Sweet Flower in the premises. We are proud to be part of the ongoing revitalization efforts in Downtown Los Angeles by providing well-paying local jobs, assisting with the beautification of the neighborhood, and making a long-term investment in this diverse community. The micro-business license provides Sweet Flower with the flexibility to own, operate and build out its own distribution business to serve its growing chain of retail stores, as well as package, process, and manufacture its line of Sweet Flower-branded products. This generates signif-icant branding power, brand confidence, and customer recognition. These operations also strengthen the economies of scale of the Sweet Flower chain of operations across Califor-nia. ueritage SWEET FLOWER "j 22 1.1. OWNER QUALIFICATIONS Sweet Flower Westwood1411 Westwood Blvd., Los Angeles, CA 90024License #: C10-0000359-LICOur newest location in the Persian Square area of Los Angeles’ iconic Westwood Village opened in July 2020. This strategic location enables Sweet Flower to serve Los Angeles’ thriving Westside, which includes the University of California, Los Angeles (UCLA), Brentwood, Santa Monica, Pacific Palisades and surrounding beach communities. The 4,800 square foot space has been completely renovated. Working closely with the West-wood Neighborhood Council and leaders from the Persian Square community, Sweet Flower is thrilled to become a valued community partner and provide an essential service to this landmark district. FUTURE LOCATIONS Sweet Flower Culver City10000 Culver Blvd., Culver City, CA 90232In the Fall of 2018, Sweet Flower submitted an application to Culver City for a retail cannabis license. Culver City required that applicants submit their application with a complaint location under contract. Our team selected the site of 10000 Culver Boulevard, which has historical significance as the original post office annex building in the City of Culver. The building is at the periphery of the downtown Culver pedestrian district and adjacent to the new One Culver development that will bring more media and creative de-sign professionals to the neighborhood. The Sweet Flower team felt that this was the ideal location to house a new business in an emerging market. It is a beautiful building that will be respectfully revitalized to serve as a flagship location for Sweet Flower. Sweet Flower was awarded one of three retail cannabis licenses in Culver City. Further-more, our submission was the top-scoring application of nearly 30 applicants, including numerous multi-state operators and real estate developers. This location currently serves as Sweet Flower’s Corporate Headquarters. The building will be renovated and prepared for retail operations with an anticipated opening of early 2021. Sweet Flower Pasadena827 E. Colorado Blvd., Pasadena, CA 91101In January 2019, Sweet Flower applied for a retail cannabis license in the City of Pasade-na. Our application was one of the six top-scoring for retail permits out of 122 applicants. Pasadena was the largest field for any competitive license in California and included multi-state operators, real estate developers, and local businesses. We plan to open Sweet Flower Pasadena in mid-2021, subject to final city permitting. ueritage SWEET FLOWER "j 23 SWEET FLOWER STUDIO CITY - Rebranded April 2019 1.1. OWNER QUALIFICATIONS BEFORE - PERENNIAL HOLISTIC WELLNESS •I SWEET FLOWER - ueritage SWEET FLOWER "j 24 1.1. OWNER QUALIFICATIONS Bureau of Cannabis Control (833) 768-5880 Adult-Use and Medicinal - Retailer License Provisional Storefront LICENSE NO: C10-0000362-LIC LEGAL BUSINESS NAME: PERENNIAL HOLISTIC WELLNESS CENTER, INC. PREMISES: 11705 VENTURA BLVD STUDIO CITY, CA 91604-2616 VALID: 7/3/2019 EXPIRES: 7/2/2021 Non-Transferable Prominently display this license  as required by Title 16 CCR § 5039    BUREAU OF CANNABIS CONTROL CALIFORNIA ueritage SWEET FLOWER "j 25 1.1. OWNER QUALIFICATIONS SWEET FLOWER MELROSE - Opened April 2019 BEFORE ueritage SWEET FLOWER "j 26 1.1. OWNER QUALIFICATIONS Bureau of Cannabis Control (833) 768-5880 Adult-Use and Medicinal - Retailer License Provisional Storefront LICENSE NO: C10-0000129-LIC LEGAL BUSINESS NAME: VERMONT HERBAL CENTER, INC. PREMISES: 8163 MELROSE AVE LOS ANGELES, CA 90046-7016 VALID: 6/5/2019 EXPIRES: 6/4/2021 Non-Transferable Prominently display this license  as required by Title 16 CCR § 5039    BUREAU OF CANNABIS CONTROL CALIFORNIA ueritage SWEET FLOWER "j 27 SWEET FLOWER ARTS DISTRICT - Opened November 2019 1.1. OWNER QUALIFICATIONS BEFORE SWEET FL .. ....--liflllial-.....----- ueritage SWEET FLOWER "j 28 1.1. OWNER QUALIFICATIONS Bureau of Cannabis Control (833) 768-5880 Adult-Use and Medicinal - Microbusiness License Provisional Distributor Level 1 Manufacturer Retailer LICENSE NO: C12-0000039-LIC LEGAL BUSINESS NAME: VALLEY HERBAL HEALING CENTER, INC. PREMISES: 614 MATEO ST LOS ANGELES, CA 90021-1312 VALID: 6/5/2019 EXPIRES: 6/4/2021 Non-Transferable Prominently display this license  as required by Title 16 CCR § 5039    BUREAU OF CANNABIS CONTROL CALIFORNIA ueritage SWEET FLOWER "j 29 SWEET FLOWER WESTWOOD - Opened July 2020 1.1. OWNER QUALIFICATIONS BEFORE ELEVATE YOUR DAY WEET FLOW YAPES WELLNESS :::, ... C: ••• ueritage SWEET FLOWER "j 30 1.1. OWNER QUALIFICATIONS Bureau of Cannabis Control (833) 768-5880 Adult-Use and Medicinal - Retailer License Provisional Storefront LICENSE NO: C10-0000359-LIC LEGAL BUSINESS NAME: SAFE HARBOR PATIENT'S COLLECTIVE, INC. PREMISES: 1411 WESTWOOD BLVD LOS ANGELES, CA 90024-4911 VALID: 7/3/2019 EXPIRES: 7/2/2021 Non-Transferable Prominently display this license  as required by Title 16 CCR § 5039    BUREAU OF CANNABIS CONTROL CALIFORNIA ueritage SWEET FLOWER "j 31 SWEET FLOWER CULVER CITY - Opening Early 2021 1.1. OWNER QUALIFICATIONS BEFORE ueritage SWEET FLOWER "j 32 1.1. OWNER QUALIFICATIONS CITY OF CUL VER CITY 9770 CULVER BOULEVARD, CULVER CITY, CALIFORNIA 90232-0507 Email: cannabis.permit@culvercity.org Finance Department July 24, 2019 VIA EMAIL (tim@sweetflower.com) AND U.S. MAIL Timothy Dodd SweetFlower Culver, LLC 4500 Park Granada, STE 242 Calabasas, CA 91302 (310) 253-5897 FAX (310) 253-5880 RE: SweetFlower Culver, LLC APPROVED TO PROCEED TO STEP 1 (C) OF THE CANNABIS BUSINESS PERMIT STOREFRONT RETAIL APPLICATION PROCESS Dear Mr. Dodd: After completing the Step 1 (b) review process, the City has approved SweetFlower Culver, LLC to proceed to Step 1 (c) of the Culver City Cannabis Business Permit Storefront Retail Application Process. The Step 1(b) Score List is attached. During Step 1 (c), you will apply for a Conditional Use Permit (CUP), hold the public meeting required by Culver City Municipal Code Section 11.17.115.A.2, and submit plans for plan check with Los Angeles County Department of Public Health. This letter is not a permit nor is it a guarantee that you will receive a permit. Nothing herein waives your requirement to correct any deficiencies noted by the City to date or deficiencies that may be discovered in the future. Do not apply for a CUP, hold the required public meeting, or submit plans to L.A. County at this time. The City will not accept your CUP application until after the conclusion of the appeals period for the Step 1 b decision and the resolution of any appeals, which is expected to take approximately 60 days. The City will notify you via email at the time it is ready to accept your application for a CUP. Please contact Culver City Cannabis Permitting if you have any questions or concerns, or if you are withdrawing from the application process. Sincerely, Permit Administrator Culver City Cannabis Permitting Attachment: Step 1 b Score List Culver City Storefront Retail Can nabis Business Permit Application Pro cess Ste p lb Score List Applicant Name Score SweetFlower Culver, LLC 265.00 TGS CC Ventures, LLC 259.00 Essence CC, LLC 242.33 MME Culver Retail, Inc. 241.67 Alef CCD, LLC 239.33 GW Retail Culver City, Inc . 233 .00 Kindly Marketplace, LLC 232.67 Harvest of Culver City, LLC 170.67 ueritage SWEET FLOWER "j 33 1.1. OWNER QUALIFICATIONS OFFICE OF THE CITY MANAGER Timothy Dodd SweetFlower Pasadena, LLC 4210 Old Topanga Canyon Road Calabasas, CA 91302 Dear Mr. Dodd: June 5, 2019 Congratulations on being identified as a top-scoring applicant for a commercial cannabis retailer permit in the City of Pasadena. This letter is to inform you that, given your specific ranking, SweetFlower Pasadena, LLC is now eligible to submit a Conditional Use Permit application for a Cannabis Retailer. Applications must be submitted in-person via appointment only to Guille Nunez, Management Analyst IV, in the Planning and Community Development Department. Please contact Mrs. Nunez at (626) 744-7634 to obtain the application and to arrange an appointment for the application submittal. It is recommended that you review the application carefully and submit all information required by the application. Incomplete applications will not be accepted. Payment of the application fee is required at the time of submission. If you have further questions please contact Mrs. Guille Nunez. Please note that this letter is not a permit and does not allow you to operate a commercial cannabis retail establishment. Congratulations once again. Steve Mermell City Manager DR;gn City Hall 100 N. Garfield Avenue, Room S228 Mailing Address: P 0. Box 7115 • Pasadena 91109-7215 (626) 744-4333 • Fax (626) 744-4774 mbeck@cityofpasadena.net ueritage SWEET FLOWER "j 34 1.1. OWNER QUALIFICATIONS ei:o [.Dt::[I; ... ~~~-=------===== Sweet Flower DDDD 133reviews Sweet Flower Melrose DDDD£ 97cevlews ~ Sweet Flower Arts District DDDD£ 43ceviews Sweet Flower Westwood DDDDD 11 ceviews G oogle ·•11 IS CAI Sweet Flower - Studio City Dispensary 11705 Ventura Blvd, Studio C ity, CA 4.8 *** 282 reviews Sweet Flower -Melrose Dispensary - West Hollywood 8163 Melrose Ave , Los Angeles , CA 4.8 *** 132 reviews Sweet Flower Dispensary -Arts District -Downtown Los Angeles 614 Mateo St , Los Angeles , CA 4.8 *** 65 reviews Sweet Flower Westwood Dispensary 1413 Westwood Blvd , Los Angeles , CA 4.8 *** 98 reviews ueritage SWEET FLOWER "j Sean R. Los Angeles, CA ;; 74 friends D 6 re vi ews DDDDD s1412020 Shop is clea n and staff was professiona l and knowledgeab le. I wis h more establish ments exhib ite d th is leve l of atte nt ion to detail. Rya n, my salespe rso n was so amaz ingly helpfu l and wasn 't tryin g to rush me . She an swered all my qu estions and I wa s very impress ed w ith in her kn owle dg e about t he va rious prod ucts. The overall vibe was ve ry welcoming wh il e at the same time , socia l di stan cing wa s observed . Hi gh ly recommended! Samantha L Burbank, Lo s Angeles, CA DDDDD 31412020 I came in for products to aid with my insomnia and pain management. Christina was extremely helpful and knowledgeable. She guided me through Sweet Flowers excellent selection and helped give alternatives to flowers since I'm unable to smoke at this time. I came home with an excellent tincture, gummies, and ointment options that made my recovery much more relaxing . Thank you so much Christina and Sweet Flower! ; ; 183 friends fl 9 reviews 0 3photos Jesse C. Los Angeles, CA ;; O friends D 4reviews 0 3photos _ CaseyM. ..,_ Seattle, WA ;; 263 frie nds D 2 review s Talia Stewart 2 reviews ***** a month ago DD DD D 31512020 0 1 photo O 1 check-in This is my 4th time coming back to Sweet Flour Melrose, must check our spot for all my LA people :) I really love the ambiance and the management and employees are all super friendly and knowledgeable. They always have a wide variety of delicious selection and I always look forward to coming back and learning more about this awesome, newly legalized industry ;) DDDDD 1012112019 Great place with friendly service. I was immediately checked in by Blaire who aided me through the whole process. I went in seeking relief for my anxiety and upon telling Blaire all my wants and reservations she directed me to the products she thought would be best (and helped me find numerous discounts along the way). I had so many questions (and went in knowing very little) and was never made to feel silly for asking them. They've created a welcoming environment with the intent to help people in need. I will definitely go back! Sweet Fl owe r was incredible! Clean , quick , an d a custom , tai lored experience . Tom gave us a walking tour and help ed us wra p our hea ds aro und what co ul d be an inti midating expe rie nce . Wi ll be return ing aga in ! Tristan Edwards 2 reviews ***** a month ago Thi s place is amazi ng . Got someth in g for my mom who who suffers from an autoim mun e di sease. Th ey ca tered to here fi nding the right prod uct to suite her nee ds. Great cus tomer serv ice fro m Brandon. Logan Caldwell O Local Guide · 141 reviews· 121 photos ***** 6 months ago Grea t products an d even better staff. Cou ldn't ask for more know ledgeable , patient , and kind people helpin g yo u to choose fro m th eir awesome se lection of prod ucts! Best place to go , hands down! Alia Kruz 4 reviews ***** a month ago Great experie nce. Clean, open , friendly an d professiona l. Brandon he lp ed me out sup er helpful as I prefer edibles to flowe r although it's no shortage of options either way. And can I just say how cute the shop is a mode rn space large enough to think in . 5 sta rs :)) 35 1.2. Budget A budget for construction, operation, and maintenance, compensation of employees, equipment costs, utility cost, and other operation costs. 1.2. BUDGET THIS SECTION CONTAINS PRIVILEGED & CONFIDENTIAL INFORMATION.ueritage SWEET FLOWER "j 37 1.3. Proof of Capitalization 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. Sweet Flower Fresno 2, LLC has secured funding from Malibu Green, LLC, an entity under common control and ownership with Sweet Flower Fresno 2, LLC, for initial build out, operations and inventory. Please see below and the following page for account balances. All start-up, capital, operational and ongoing business expenses are al-ready well covered by current balances at Malibu Green, Inc. 1.3. PROOF OF CAPITALIZATION Mr. Jeffrey Hicks, Please find below the cumulative balance of your four accounts with us. The accounts are also listed in the below chart. Thank you, Dana Adams VP of Risk Management Emerald Beach Financial THIS SECTION CONTAINS PRIVILEGED & CONFIDENTIAL INFORMATION. EMERALD BEACH f-I t A .: • l ueritage SWEET FLOWER "j 43 1.5. Hours of Operation & Opening & Closing Procedures Fully describe hours of operation and opening and closing procedures. HOURS OF OPERATIONHeritage by Sweet Flower’s regular hours of operation will be between 8:00 a.m. and 10:00 p.m. seven days per week or as permitted by the city. Cannabis sales will not be permitted outside these hours. Additionally, the dispensary will not be open to the public outside these regular hours of operation. If the city reduces the permitted hours of operation for retail cannabis dispensaries at their discretion, Heritage by Sweet Flower will comply with those new hours. OPENING & CLOSING PROCEDURESHeritage by Sweet Flower will implement the opening and closing procedures that are utilized at all of our existing retail locations. These procedures have been modified and perfected over our years of operation at all four of our California locations. The opening and closing procedures have been summarized into a simple checklist. Each day the Manager and Sales Associates use these checklists to mark off their tasks. The Manager signs and dates the list after the closing procedures and before leaving the premises that day. This process helps ensure a clean, safe, secure, and friendly environment for our customers and team. When scheduled for opening shifts, Sales Leads and Associates must wait for the Manager scheduled to arrive, as they have the keys to open the store. Typically, an opening and closing shift starts and ends one hour before the store opens or closes for business. This gives all employees enough time to complete the required duties. Opening ProceduresOpening Security - The first employee to arrive at the store each day is a management-level team member; they arrive at least one hour before opening. At least two other employees are scheduled to arrive at the same time as the opening Manager to serve as a deterrent against robbery attempts at facility opening. The arriving Manager performs a visual inspection of the premises from the safety of their vehicle, driving all accessible perimeters of the premises. If any signs of forced entry, suspicious persons, or suspicious circumstances are observed during this in-spection, the Manager and employee will retreat from the property and summon the contracted private patrol opera-tor or police, as appropriate for the circumstances. When no such concerns are found, the Manager parks as near as possible to the lobby entrance and proceeds inside. The second employee is not permitted to exit their vehicle until the Manager has completed the exterior screening and is also exiting a vehicle. Upon entry, the Manager closes and locks the lobby door behind themselves and disarms the facility alarm. If the Manager finds the alarm is not armed, the Manager will exit the premises, lock the door and return to their vehicle. The contracted private patrol operator will be summoned to clear the premises with the Manager. Once the premises are cleared of concerns, an immedi-ate investigation will be conducted to identify and mitigate the reason for the alarm’s condition on arrival. Before any employees are granted entry to the premises, the opening Manager:• Performs a manual test of the premises alarm system;• Checks that all door locks, display cases, cabinet locks, and safes are in operable condition and free of tampering;• Inspects inside and outside the facility for signs of attempted security breaches;• Checks cameras for functionality, network connectivity, and unobstructed viewing; 1.5. HOURS & OPENING PROCEDURES ueritage SWEET FLOWER "j 44 • Turns on interior lights, where appropriate, and assure all lighting is working correctly;• Clears the premises of any slip, trip, or fall hazards; • Ensures odor control system is operational; • Checks for alerts within METRC Track-and-Trace and Greenbits point-of-sale systems; and• Verifies that all emergency egress pathways are unobstructed. Opening Manager - A management-level team member will open the store. After opening the store, the Manag-er’s first task of the day is to open the safe and fill each cash drawer with $100, then place them into the locked compartment at the points-of-sale in the Retail Floor. Next, the Manager reviews the day’s schedule to ensure all scheduled Sales Associates have arrived and begun their opening duties. The Manager also prints the schedule for the day and verifies break times with the Sales Associates. Additionally, the Manager reviews any specials or sales promotions with the team. Sales Leads & Associates - At least two Sales Leads or Sales Associates are scheduled for opening each day and arrive one hour before opening. They will enter the building once the Manager allows them and clock-in imme-diately. The opening duties involve preparing the Retail Floor. The Sales Leads and Associates dust the display shelves, clean fingerprints off the glass display cases, and disinfect and sanitize all high touch surfaces and items. They are also responsible for sweeping the Retail Floor and outside sidewalks and cleaning the Employee Re-stroom. Retail Floor screens, receipt printers, point-of-sale (POS) iPads, and concierge tablets are powered on. They then ensure each POS station is equipped with a barcode scanner and any other necessary materials. Lastly, the team reviews their schedule and break times for the day with the Manager on duty, go over all specials and sales promotions, and open the blinds on all windows on the Retail Floor. Inventory Manager & Inventory Clerks - The Inventory Manager and Inventory Clerks arrive 30 minutes before the store opening. Their opening duties include ensuring that the limited-access Inventory Room is clean and or-ganized; powering on all computers, tablets, and receipt printers; ensuring that Greenbits (dispensary point-of-sale system that automatically integrates to METRC) and I Heart Jane (platform used by Sweet Flower for customer or-der fulfillment) are functioning correctly; and reviewing the product delivery schedule from distributors for the day. Last, the Inventory Team reviews the sales and promotions for the day and alerts the Sales Associates of limited inventory for any of those products. Closing ProceduresClosing Security - Scheduling practices ensure that the closing Manager is accompanied by at least one other em-ployee to deter takeover robbery attempts at the end of the business day. The last store employee leaving the prem-ises each day is a Manager. The closing Manager performs the following closing procedures:• Secures any records into their respective locking cabinets;• Logs out of all software, verify password protection;• Verifies proper functioning and no obstructions of all surveillance cameras;• Verifies functioning of exterior lighting;• Verifies all interior doors, cabinets and safes are locked;• Turns off appropriate interior lighting;• Arms the facility alarm system;• Walks the perimeter, verifying all doors are secure; and• Drives the surrounding area for suspicious persons, vehicles, or circumstances (persons potentially laying in wait), reporting any such findings to the contracted private patrol operator or police, as appropriate, for further investigation. Employees and Managers are trained to be cognizant of security risks while driving home. Staff should monitor for vehicles that may be following them, should vary their routes, and should have predesignated safety zones (loca-tions with heavy police/security presence) identified along their path home. 1.5. OPENING & CLOSING PROCEDURES ueritage SWEET FLOWER "j 45 Closing Manager - A management-level employee ensures closing procedures are followed in order to maintain a clean and safe environment for patrons and staff. They verify that the Sales Leads and Associates have completed their end of day duties and then perform the Manager closing procedures. The Manager’s closing duties include collecting all currency envelopes from the drop safe, recording the amounts, and comparing the totals to the Greenbits transactions for the day. An end of day email is sent to the District Man-ager. This email includes: total sales, number of customers, top-selling products, and an overall summary of the day. Lastly, the Manager collects employee identification cards. To prevent counterfeiting of such identification cards or theft and misappropriation by an offender, these are issued and collected daily by the opening and closing Manager(s). Sales Leads & Sales Associates - The Sales Leads and Associates begin their end of day duties upon close of busi-ness at 10:00 p.m. They follow a checklist, as provided by the Manager, who verifies satisfactory completion of the list. After all customers have vacated the store, all currency at the points-of-sale are double-counted under surveil-lance and placed in a drop envelope that is associated with a POS terminal, sealed, signed, and time stamped by the depositing employee. They then drop the envelope into a drop safe installed in the wall separating the Retail Floor from the Management Office. Retail Floor music is turned off. The Inventory Window is both closed and locked. The employee Breakroom is swept clean and tidied up. This includes dishwashing, wiping countertops, and vacuuming the couch. On the Retail Floor, glass displays and countertops are cleaned and left free of fingerprints and dust. Displays are straightened and dusted. Barcode scanners and receipt printers are powered off. All POS peripherals (tablets, laptops, and scan-ners) are sanitized and disinfected, plugged in, and left to charge overnight. Cashier area bags are to be refilled. Trash and debris are removed from all areas which include the Retail Floor, Employee Restroom, and Check-Out Counter. Blinds are closed and a Magic Eraser is used to remove scuffs from counters, walls, and doors. All trash receptacles are emptied. Lastly, employee identification cards are turned over to the Manager before Sales Leads and Associates clock-out. Inventory Manager & Inventory Clerks - The Inventory Manager or Clerk ensures that all cannabis products are stored within the locked limited-access Inventory Room at the end of the business day. They are also responsi-ble for organizing and cleaning the Inventory Room in preparation for the next day. This includes disinfecting all high touch surfaces and items within the room. Next, the Inventory Manager or Clerk powers down all computers, tablets, and printers for the day. Last, they are to ensure the Inventory Window and door are locked for the night. At that time they turn in their identification card to the Manager and clock-out. The Inventory Manager and/or Inventory Clerks are responsible for conducting inventory reconciliation at least once per month at the end of a business day. They verify that Sweet Flower’s physical inventory matches the latest inventory, fewer sales since the last reconciliation date and time. The result of the inventory reconciliation is re-corded and retained in Sweet Flower’s inventory systems, I Heart Jane and Greenbits. 1.5. OPENING & CLOSING PROCEDURES ueritage SWEET FLOWER "j 1. BUSINESS PLAN 46BY 1.5. OPENING & CLOSING PROCEDURES Date: ___________________________ OPENINGManager: ␣Place cash at register and prepare POS ␣Print and review schedule ␣Greet team and review sales, updates, and promotions ␣Distribute employee ID cards Sales Leads and Associates: ␣Clock in ␣Dust shelves, clean display cases, disin-fect and sanitize touch surfaces ␣Sweep retail floor and sidewalk outside store ␣Clean employee restroom ␣Power on and distribute POS devices, tablets, printers, and scanners ␣Power on retail floor display screens ␣Review schedule, promotions, and store updates Inventory Team: ␣Clock in ␣Clean and organize Inventory Room ␣Power on POS devices, tablets, printers, and scanners ␣Ensure Greenbits and I Heart Jane are functioning properly and Greenbits is connected to METRC ␣Review product delivery schedule ␣Review sales and promotions ␣Alert team of any items with low inven-tory levels CLOSINGManager: ␣Collect currency envelopes from drop safe ␣Count and closeout registers ␣Send End of Day email to District Manager ␣Collect employee ID cards Sales Leads and Associates: ␣Deposit cash into drop safe ␣Turn off music ␣Clean employee Breakroom ␣Clean and dust retail floor ␣Disinfect and sanitize all touch surfaces ␣Power off POS devices, tablets, printers, and scanners ␣Plug-in devices that require charging ␣Refill exit bags ␣Take out trash ␣Clock out Inventory Team: ␣Reconcile inventory (monthly) ␣Prepare inventory room for next day ␣Ensure all products are properly stored in Inventory Room ␣Power off and charge POS devices, tab-lets, printers, and scanners ␣Disinfect and sanitize all touch surfaces ␣Secure and lock Inventory Room & In-ventory Window ␣Clock out Opening Manager Signature: _________________________________ Closing Manager Signature: _________________________________ ueritage SWEET FLOWER "j 1. BUSINESS PLAN 47BY 1.6.1. Daily Operations With as much detail as possible, the Business Plan should describe the day-to-day operations which meet industry best practices. Fully de- scribe the day-to-day operations if you’re applying for a retail permit. At Heritage by Sweet Flower, we will implement our best-in-class operational standards and protocols, which we have developed and use to great success at all our current locations. This includes Standard Operating Procedures (SOPs) and training that go above and beyond city and state requirements, focusing on compliance and whole community safety and education. Sweet Flower has remained 100% compliant with regulations at all four of our existing locations. Our ownership and leadership team are involved hands-on at every store, resulting in a team that is well trained and held accountable to Sweet Flower ’s high standards. 1.6.1.i. Customer Check-In Procedures Describe customer check-in procedures. Sweet Flower will post signage near the main entrance notifying patrons that access is only permitted to individuals 21 years of age or older or medical pa-tients with a valid physician’s recommendation, who must be 18 years of age or older. Anyone under the age of 18 years old will not be allowed to access the building. Customers will enter Heritage by Sweet Flower via the main entrance of the building off the parking lot near E. Olive Avenue. The main entrance will remain locked at all times. Customers will need to alert the team they have ar-rived by using the buzzer outside the main entrance. This buzzer will be clear-ly marked with signage. A team member will check the surveillance camera at the main entrance and buzz-in the customer at their discretion. The patron will be greeted by a team member, who will be stationed in the Reception area, separated from the Retail Floor with glass windows and a secure door. Adult-Use Customer Check-In ProceduresIf a customer identifies themselves as an adult-use customer, the Sweet Flower team member then asks for their government-issued identification (ID). United States-issued driver’s licenses or ID cards, United States passport cards, and US or international passports are acceptable forms of identification. A Sweet Flow-er team member visually verifies the date of birth listed to confirm the patron is at least 21 years of age and that they match the photo and description on their identification. The expiration date on the ID is also checked. Expired forms of ID are not accepted. Customers may be asked to remove items of clothing or accessories (hoodies, hats, scarves, glasses, etc.), which may obstruct the team member from verifying the patron matches the photo on their ID. Team members at check-in visually verify the eye color and height listed on the ID documents match the patron. Team members are trained to recognize fraudulent forms of ID or an individual attempting to use another person’s ID. Security and the Manager on duty are to be notified if a patron attempts to use a fake form of 1.6.1. DAILY OPERATIONS & 1.6.1.I. CUSTOMER CHECK-IN 48 ID. The fraudulent ID is confiscated and turned over to law enforcement. Once a team member has visually verified the patron’s ID, they scan the bar-code on the patron’s ID with a barcode scanner, which is linked to the point-of-sale (POS) application, Greenbits, on an iPad. The Greenbits application uses the scanned information from the ID to once again electronically verify the customer is of legal age. The patron’s information populates automatically within the Greenbits system and creates a “Customer Profile,” providing the customer permits for the information to be saved. The customer is then entered into the “Customer Queue” within the Greenbits application. At this time, the team member allows the patron to enter the Retail Floor by using the glass door’s buzz-in electronic entry system. If the Retail Floor has many customers shopping, then the patron will be asked to wait in the Screening Lobby until another customer has completed their purchase and vacated the retail space. Medical Customer Check-In ProceduresIf a customer identifies themselves as a medical customer, the Sweet Flower team member then asks if they are a new or returning customer. New medical customers are asked for their government-issued ID, proof of California resi-dency, and their physician’s recommendation or a cannabis card issued pursuant to Health and Safety Code Section 11362.71. The team member uses the same age and ID verification methods outlined above for adult-use customers to ver-ify that the medical customer is at least 18 years of age. Valid proof of Califor-nia residency includes a California driver’s license or ID card, US military ID card, or US passport. The team member then verifies the customer’s physician recommendation over the phone or, if provided, the website listed on the back of the medical recommendation. If the physician’s recommendation can not be verified, the customer will not be permitted to access the dispensary or purchase cannabis or cannabis products. It must also be confirmed that the physician is in good standing with the California Medical Board via the Medical Board’s website. Medical cannabis cards can be verified via the California Department of Public Health’s Medical Marijuana Identification Card Program (MMICP), a web-based system. Once the medical customer’s ID and physician’s recom-mendation or cannabis card is confirmed, their information and documents are stored within the Greenbits system, and a “Customer Profile” is created. When a medical customer returns to the dispensary, they are only required to show their government-issued identification. Their medical recommendation is stored within the Greenbits system, and the expiration date of their recommendation is verified each time they visit Sweet Flower. Medical recommendations are only valid for a 12-month period. Upon the expiration of a medical customer’s recommendation, a Sweet Flower team member requests to see and verify a renewed and valid physician’s recommendation. If the medical customer does not have a renewed recommendation, the customer will not be granted entry to the Retail Floor. If the medical customer’s recommendation is valid, they can access the Retail Floor as outlined above for adult-use customers. 1.6.1.I. CUSTOMER CHECK-IN ueritage SWEET FLOWER "j 49 1.6.1.ii. Location & Procedures for Receiving Deliveries Identify location and procedures for receiving deliveries during business hours. Procedures for Receiving DeliveriesSweet Flower shall only receive shipments of cannabis goods from licensed distributors. Prior to receiving a deliv-ery of cannabis goods, Sweet Flower’s Inventory Manager requests an electronic copy of the distributor’s license and shipping manifest before they deliver the cannabis goods to Sweet Flower premises. The Inventory Manager will verify on the State of California Bureau of Cannabis Control (“BCC”) website the distributor ’s license from whom Sweet Flower is purchasing is, in fact, an active commercial cannabis licensed distributor with a license issued by BCC via the license search option: bcc.ca.gov/clear/license_search.html. If the distributor does not have an active distributor license, Sweet Flower will not proceed with the order. The Inventory Manager will then verify that the shipping manifest contains all necessary and accurate information relating to the corresponding purchase order for cannabis goods. The Inventory Manager shall also request to see and verify corresponding copies of the Certificates of Analysis (COA) from a licensed testing laboratory for all of the cannabis goods ordered. The In-ventory Manager shall then: (i) compare the shipping manifest to the purchase order and confirm that the shipping manifest accurately reflects the type and quantity of cannabis goods ordered and (ii) cross-reference the COAs to ensure that the cannabis goods meet the state testing requirements for regulatory compliance. If the shipping manifest accurately reflects the purchase order information, the Inventory Manager shall notify the distributor to schedule a delivery time. Distributor shipments are scheduled at least 24 hours in advance. Delivery schedules are maintained in confidence, with only those employees having an operational need to know being informed. All deliveries must be scheduled during daylight business hours and at least two hours apart. The Inventory Receiving Area is located at the back of the building. This separate and distinct entrance is a limited-access area, not used by the general public. Please see Section 5.2. Premises Security Diagram. Upon the licensed distributor’s arrival at Heritage by Sweet Flower, Security Personnel will verify the distributor’s credentials. The Inventory Manager or an authorized member of the staff will inspect the delivered cannabis goods in accordance with Sweet Flower’s Shipment Intake Policy for labeling and packaging compliance, state testing requirements compliance, and order accuracy. More specifically, the Inventory Manager or authorized member of the staff will verify that: 1. The testing laboratory identified on the Certificate of Analysis for regulatory compliance testing has an active license for Testing Laboratory: bcc.ca.gov/clear/license_search.html; 2. The accompanying printed copy of the COA is for regulatory compliance testing and not for research and de-velopment testing;3. The accompanying printed copy of the COA corresponds to the licensed distributor and the batch of cannabis goods ordered;4. The cannabinoid and THC content on the package matches the COA for regulatory compliance testing provided by the licensed distributor;5. The cannabis goods have not exceeded their best-by, sell-by, or expiration date if one is provided;6. The batch number is labeled on the package of cannabis goods and matches the batch number on the corre-sponding COA for regulatory compliance testing;7. The packaging and labeling of cannabis goods comply with all applicable regulations by the BCC, and the State of California Department of Public Health Manufactured Cannabis Safety Branch (“MCSB”); 1.6.1.II. PROCEDURES FOR RECEIVING DELIVERIES ueritage SWEET FLOWER "j 50 8. None of the packages are defective; 9. The packages containing cannabis goods are re-sealable, tamper-evident, and child-resistant; and10. The units of the cannabis batches comports with the amount of units as listed in the track-and-trace system and the Shipping Manifest Sweet Flower accepts or rejects in whole shipments of cannabis goods. However, partial shipments of cannabis goods are rejected in the following circumstances:• Sweet Flower receives a shipment of goods different than those listed on the invoice or receipt, Sweet Flower shall reject the non-conforming portion of the shipment that is not accurately reflected on the invoice or receipt; or• Sweet Flower receives a shipment containing any cannabis goods that were damaged during transportation; Sweet Flower shall reject the portion of the shipment that was damaged; or• Sweet Flower receives a shipment of goods that exceeds its provided expiration date or in which the packaging or labeling is non-compliant, Heritage by Sweet Flower shall reject the non-compliant portions of the shipment. If Sweet Flower ever rejects a shipment of cannabis goods, in whole or in part, Sweet Flower records in Greenbits and CCTT-METRC and indicates the reason for rejection. If Sweet Flower accepts the delivery, the delivery is recorded in Sweet Flower’s Receipt of Shipments Log with de-tailed information, including the distributor’s license number, business name, product descriptions, measurements, date and time of receipt, expiration date, price paid for goods, and excise tax amount to be paid to the distributor. After receiving the physical delivery of cannabis goods, Sweet Flower shall accept the shipment through METRC and ensure that the cannabis goods are recorded in the Greenbits point-of-sale (POS), upon the City Manager ’s approval and authorization to utilize Greenbits as a POS. If Greenbits is approved by the City Manager, Greenbits integrates with METRC and is capable of producing historical transactional data for review. The Inventory Manag-er shall ensure that each package reflects the correct unit of measure and that the manifest on METRC matches the order that was actually received. If there are discrepancies, Sweet Flower will request that the distributor revise the manifest and make the necessary corrections. If the manifest is accurate, the Inventory Manager accepts the manifest within METRC. Products are never added to the POS system unless they have been cleared in METRC. Sweet Flow-er’s computer system automatically saves backup copies of all Greenbits system entries to the secure local server. Location & Security for Receiving DeliveriesThe Inventory Receiving Area is located at the back of the Heritage by Sweet Flower building. This separate and distinct entrance is a limited-access area, not used by the general public. Please see Section 5.2. Premises Security Diagram. Distributors will be instructed to use the closest available parking space to the back door of the Inventory Receiving Area. The parking area and entrance to the Inventory Receiving Area are under video surveillance. They will be monitored by both Security Personnel and the Inventory Manager upon notice of a distributor ’s impending arrival. The intake of cannabis deliveries from licensed distributors occurs during daylight hours to decrease the risk of a crime against vendors and employees. Distribution schedules are staggered to avoid the development of patterns. Distribution personnel are identified, verified, and cleared by Sweet Flower ’s Security Personnel prior to entering a facility. Transfers of cannabis goods occur only inside the limited-access area and in the presence of a Manager and an armed Security Personnel while under video surveillance. The design of the premises incorporates an Inventory Receiving Area, providing for the ability to quickly move delivered products into a secure and dis-crete area. Adjacent to the Inventory Receiving Area of the premises is a marked loading zone properly signed in accordance with the California Vehicle Code. The Security Personnel in the Reception Office will be responsible for monitor-ing this loading zone through video surveillance and will immediately report to management when unlawful park-ing is observed. The manager will mitigate the parking violation by contacting the responsible owner or by way of contacting the police department or parking enforcement division thereof. 1.6.1.II. LOCATION FOR RECEIVING DELIVERIES ueritage SWEET FLOWER "j 51 Upon the arrival of a licensed distributor, the distributor will be instructed to go to the Screening Lobby entrance to be verified. Once the distributor is verified, the distributor will be escorted by Security Personnel out of the Screen-ing Lobby and to the limited-access Inventory Receiving Area. An Inventory Manager will grant access to the veri-fied, licensed distributor. The licensed distributor shall sign-in on the Limited-Access Area Log prior to entrance. In addition to the Inventory Manager, the Security Personnel will remain present to oversee the receipt of shipments from licensed distributors, and at least one more employee must be present to receive distribution shipments to ensure there are at least two verifications of the receipt of the shipment. The Inventory Manager will record all of the relevant and detailed information each time a distribution shipment is received, including who was present at the time of delivery and receipt. Prior to the departure of a Distribution vehicle, surveillance cameras will be monitored and no departures will oc-cur until the surrounding area is free of suspicious circumstances. If suspicious persons or activity is afoot, the distributor will be notified to delay their arrival until the circumstances have been mitigated. Should any blatantly suspicious or dangerous activity develop inside or outside of the facility, the facility will be “locked down.” No further access will be granted, and police notification will be immediately initiated. 1.6.1.II. LOCATION FOR RECEIVING DELIVERIES ueritage SWEET FLOWER "j 52 1.6.1.iii. Point-of-Sale Identify the name of the point-of-sale system to be used and the num- ber of point-of-sale locations. Prior to utilizing any point-of-sale (POS) system, Sweet Flower shall ensure that the City of Fresno City Manager approves the POS system Sweet Flower intends to utilize at its location. Sweet Flower will ensure that management inventory tracking system shall track and report on all aspects of the business including, but not limited to, such matters as cannabis tracking, inventory data, gross sales (by weight and by sale) and other information which may be deemed necessary by the city. Sweet Flower shall ensure that any POS it proposes to utilize and submits for approval to the City Manager is compati-ble with the city’s record-keeping systems and has the capability to generate historical transactional data for review. Greenbits Point-of-Sale SystemEach of our retail locations manages and monitors inventory through Greenbits software, which is validated by and integrates with the California Cannabis Track-and-Trace (CCTT) system, METRC. The Greenbits system also acts as an iPad point-of-sale interface, streamlining the tracking of products from inventory delivery to customer sales. Greenbits has been validated and granted access to CCTT’s Application Programming Interface (API). At Sweet Flower, we have established our brand as customer forward and staff each store for optimum customer experience. We have ample point-of-sale (POS) terminals and the ability to quickly add more based on demand. Our priority is to serve each customer individually and to walk them through the shopping experience personally. We value getting to know their needs, taking the time to explain product effects, onset times, and exploring the right inges-tion method for each consumer. Additionally, Sweet Flower understands that track-and-trace reporting is an essential tool for compliance. It gives the state the ability to track every cannabis plant planted, harvested, processed, trans-ported, packaged, and sold. As a retailer, Sweet Flower reports the necessary specific data from every sale, delivery, destruction, or disposal of cannabis product within the store, daily. These reports are automatically transmitted by the track-and-trace and point-of-sale (POS) software, Greenbits, to METRC in real-time. Heritage by Sweet Flower intends to open with three POS iPads equipped with Greenbits software, an easy to use and compliant dispensary POS platform. We utilize Greenbits in all of our locations because they are the industry leader in compliance, technology, and support. Greenbits can be found in 1,200 canna-bis retailers, serves 22,000 registered users, and rings more than $3.7 billion in sales annually across 13 states. Greenbits was founded by engineers with experience in crafting global accounting software with complex compliance requirements. In 2014 they began developing a cannabis point-of-sale product to meet the industry’s unique workflows and business demand—from seed-to-sale tracking to long check-out lines to customer sales limits and complex inventory batch tracking. Greenbits developed a POS and inventory manage- 1.6.1.II. POINT-OF-SALE ueritage SWEET FLOWER "j 53 ment solution that has become the industry leader and standard. The software focuses on simplifying processes and making compliance effortless. Compliance tools are built into the software providing guidance on transaction limits, age and ID verification, and state regulations. The software connects to METRC, ensuring compliant trans-actions according to state regulations. An added benefit of this software is the availability of an “offline” mode that will continue to ring sales, assist with customer inquiries and maintain compliance even if the network is down. Critical features of Greenbits include:• Runs simple and easy inventory audits;• Data is automatically synced with 100% accuracy in real-time with California’s METRC system;• Customer verification captures important information at check-in and enforces electronic age validation upon check-out;• Customer management tools to reduce the potential for errors with check-in and queuing;• Reduces check-out transaction time and interruptions with a simple, fast, and reliable register;• Personalized customer records and built-in loyalty programs;• Prevents any sale from exceeding state regulations with auto-applying transaction limits;• Compliant receipts and labels, state reports, and regular inventory audits; and• Emergency Mode keeps lines moving, even if the internet is down. Number of Point-of-Sale Locations - The POS iPads will be set up at the Check-Out Counter, as indicated in the floor plan in Section 6.3. Premises Site Diagram. Our existing Sweet Flower stores have two to three point-of-sale terminals, and we feel three will be adequate for our Fresno location. We plan to assess the number of customers served per day within the first 60 days of operation and will add additional POS units if necessary. I Heart Jane Inventory SystemWe also utilize I Heart Jane, a platform that tracks our product inventory and integrates with our Greenbits POS system. I Heart Jane is a fully-automated eCommerce platform for cannabis retailers; it is used both by our custom-ers on our website and by our Sales Associates in-store. Our website’s online menu utilizes the I Heart Jane platform and integrates with our Greenbits point-of-sale (POS) system to automatically import our products’ menu. The menu always updates with new and sold out items. I Heart Jane features built-in compliance, including electronic age and address verification and purchasing limits. I Heart Jane’s online shopping platform is aesthetically pleasing and very simple to use. The online menu features pro-fessional photos and detailed descriptions for each product offered. Customers can filter products by type: flower, pre-rolls, vaporizers, concentrates, edibles, beverages, tinctures, topicals, etc. Products can also be sorted by Indica, Sativa, and Hybrid; THC and CBD percentage; weight; excise taxes; and sales promotions. Once customers have added their selections to the shopping cart, they can purchase their items via the check-out process. Customers have the option of delivery or in-store pick-up. Our Sales Associates also use tablets in-store equipped with the I Heart Jane application. Sweet Flower does not keep cannabis inventory out on the Retail Floor for customers to handle, so the I Heart Jane software acts as their shopping cart. Once a customer has selected items to purchase, the Sales Associate adds the items to the customer’s virtual shopping cart using a tablet equipped with the I Heart Jane application. The Sales Associate electronically sends their order via I Heart Jane to the Inventory Clerk in the limited-access Inventory Room. Once all items for the order have been gathered from within the Inventory Room, the Clerk passes the basket through the secure In-ventory Window. The basket is received by a Sales Associate who is stationed behind the secure Check-Out Count-er. The Sales Associate then scans each product via the Greenbits point-of-sale system and completes the transac-tion with the customer’s preferred payment method. 1.6.1.II. POINT-OF-SALE ueritage SWEET FLOWER "j 54 1.6.1.IV. NUMBER OF CUSTOMERS Heritage by Sweet Flower RENDERING 1.6.1.iv. Number of Customers The estimated number of customers to be served per hour/day. The average Sweet Flower customer spends 15 minutes in the retail area to select their products and complete their purchase. We track our sales through Greenbits software, giving us the ability to see our hour by hour sales volume. We are able to quickly adapt and add more staff based on real-time data to ensure we are well-staffed to give each customer the individual attention and care that has come to define the Sweet Flower brand. Below are our estimates of average customer per day and per hour for both in-store and delivery at Heritage by Sweet Flower. These esti-mates are based off of our current store averages: In-Store Customers per Day In-Store Customers per Hour Delivery Customers per Day Delivery Customers per Hour YEAR 1 254 18 16 1 YEAR 2 345 25 26 2 YEAR 3 408 29 35 2 I I ueritage SWEET FLOWER "j 55 1.6.1.v. Product Line The estimated number of customers to be served per hour/day. Sweet Flower is dedicated to providing our guests with ethical cannabis and only works with the industry’s best brands. With the growing number of can-nabis brands entering the market each day, it is imperative that we remain se-lective and diligent regarding which products we choose to carry. This means quality over quantity. Defining and understanding our brand, meticulously carrying out that message throughout Sweet Flower stores, and honing into the specific target audience our geographical region caters to, is key to building out an aligning list of brands we chose to carry and partner with. PROPOSED PRODUCT LINESweet Flower’s brand message is built around the positive contributions of cannabis products for our bodies, minds, and lives with responsible use. This means stocking the highest quality products in our stores. Sweet Flower is committed to carrying a range of all-natural, pesticide-free premium cannabis products, including topicals, tinctures, edibles, vapes, pre-rolls, and loose flow-er. Also, Sweet Flower offers products at different price points to be affordable to a wide range of consumers. Products are curated by the desired effect first, and then by product type, tested properties, such as Tetrahydrocannabinol (THC) to Cannabidiol (CBD) ratios, and terpenes. We emphasize physical and emotional health, overall wellbeing, and mindfulness over merely “getting high.” The diverse range of medical conditions and customer needs makes it critically important that our products target specific effects and accommodate the many different administration methods. For example, customers looking for comfort can browse high CBD offerings that range from controlled-dose vape pens, low-dose edibles, tinc-tures, and topicals. Customers looking for products to increase energy can browse a similar collection of Sativa dominant products ranging from premi-um flower, beverages, sublinguals, bath bombs, and more. Sweet Flower features a rotating selection of strains grown by the state’s most well-respected cultivators. We curate a range of low-potency options, includ-ing low-THC, high-CBD strains, recommended for beginners and consumers with lower tolerances. In addition to low-potency flower, we offer a selection of low-dose edibles that act as a great introduction to cannabis. Low-dose edibles are a good option for anyone looking to micro-dose–an alternative that allows consumers to experience the benefits of cannabis without an over-whelming high. Sweet Flower also carries various non-psychoactive products including topicals such as lotions, balms, and salves, suitable for localized relief from acute pain and injury recovery. From beginners to connoisseurs, Sweet Flower is committed to providing options for all consumer types. These offerings include a selection of curated high-potency cannabis products, such as concentrates and extracts, which offer a more potent high and quicker onset. These products cater to our more experi-enced consumers as well as individuals seeking relief from medical conditions. 1.6.1.V. PRODUCT LINE • SWEET FLOWER -=----· it:!) ~w:~i:~ '"""•0 •<1'0• - 56 We believe our devotion to the quality and range of our thoughtfully curated products makes us a trusted place to learn about and purchase cannabis. We have established relationships with the most respected brands in the canna-bis industry. We are continually working to find new and emerging brands to partner with to bring the most effec-tive and desirable products to our customers. Sweet Flower Senior Buyer, Michelle MendozaMichelle Mendoza, Sweet Flower’s Senior Buyer, works to identify brands that have best-in-class cultivation prac-tices and align with our mission and target customer. Ms. Mendoza is a seven-year veteran of the cannabis industry. At Sweet Flower, she oversees brand relations and product procurement for all locations. Her deep understanding of cultivation methods, technology, and sourcing ensures Sweet Flower is curating the best products from Cali-fornia’s most respected producers of high quality, organic cannabis. Ms. Mendoza ensures all companies we work with are fully licensed and compliant with the applicable testing and packaging regulations. With a background in education, Ms. Mendoza fundamentally understands the importance and responsibility of educating people. She feels this sentiment is no different in looking at cannabis—there is so much to know about the power of this plant as a medicine. She gladly welcomes her role in conveying Sweet Flower’s message to the community. When choosing new brands, Ms. Mendoza asks poignant questions of the vendors, analyzing their responses. She checks references and makes sure their product fits a need and targeted price point for Sweet Flower. Between these two metrics, Ms. Mendoza can make a simple assessment of whether a brand is offering a quality product that Sweet Flower can stand behind. Ms. Mendoza spends every day per week at each of our Sweet Flower locations. She feels dedicating time at each store is essential to understanding the flow and needs of customers and employees alike. She believes each loca-tion is a unique micro-climate. During these weekly visits, Ms. Mendoza allocates time to speak with the Inven-tory Clerks, who are the product gatekeepers, the Store Managers, Sales Associates, and customers. The feedback gained during these visits is highly beneficial in assessing each location’s unique product needs. Michelle Mendoza is also dedicated to ensuring Sweet Flower carries several brands owned by Black, Indigenous, and People of Color (BIPOC and LGBTQ+ individuals. She is also a Board Member of the Cannabis for Black Lives organization, a coalition of cannabis companies galvanizing the broader industry to support Black-led orga-nizations and communities through a commitment to corporate hiring and company culture, amplification of Black voices, and financial support with ongoing accountability measures. Racial and gender diversity in the marijuana industry is still lacking, but Ms. Mendoza firmly believes representation matters and is actively working toward changing the status quo. Fresno Cannabis BusinessesOnce the City of Fresno awards licenses to cannabis testing laboratories, manufacturing facilities, cultivators, and distributors, we will partner with these local businesses to utilize their services and carry their products within our stores. This will help to grow Fresno’s overall Cannabis industry and further local investment. We will dedicate clearly defined shelf space to Fresno equity business products, and we will work hand in hand with them as retail partners. We hope to develop co-branded promotions, in-store events, and marketing tools to educate our customers and the community on the importance of supporting quality local cannabis products. BrandsSweet Flower’s target customer values a premium retail experience, including an appreciation of well-curated and displayed products. Beyond quality alone, our customer cares about product sourcing, provenance, and narrative. We carry artisan products with a deep and detailed understanding of their origins, cultivators, and effects. Some of Sweet Flower’s best selling brands include: 1.6.1.V. PRODUCT LINE ueritage SWEET FLOWER "j 57 Canndescent - Canndescent offers cannabis flower, pre-rolls, and vape pens in five experiences - Calm, Cruise, Create, Connect, and Charge. Their mission is to empower adults to turn down the noise, unlock the moment, and transform their lives with exceptional cannabis products. Canndescent utilizes organic pest management and purified water in their cannabis cultivation. They are focused on producing the best cannabis flower available and have a cultivation team with 70+ years of collective growing expertise. Their management team’s deep operational and technical strength helps them produce California’s highest quality cannabis flower. Claybourne Co. - Claybourne Co. has paved its own road by offering unique flower products presented in a unique way. They believe that each strain’s individuality lies in the unique canna-binoid and terpene profile of the flower. Claybourne Co. is growing the next California cannabis brand for a new breed of cannabis consumers who want to know more about the cannabis they are consuming, and that starts with transparency. Claybourne Co. offers cannabis flower and flower + kief combinations. A Golden State - From Mount Shasta in Northern California, A Golden State has emerged as one of the leading high-quality cannabis brands. They pride themselves on maintaining a culti-vation style that has remained true to their roots, including watering plants from local mountain snowmelt and growing in a soil derived from coconut husk. The resulting product is a premium flower in distinct strains “created for recreation, relaxation, sharing with friends, unwinding solo, or finding the right headspace for enjoyment”. Raw Garden - The team at Raw Garden believes in a natural approach to cannabis. They con-sider themselves farmers first, combining the fertile soil, hot sun, and cool nights of California’s Central Coast to generate a diverse and flavorful crop. Their products are grown from their own seeds and harvest using a Cryogenic freezing process that captures the natural flavors and aromas while fresh. Raw Garden extracts cannabis oil from frozen plants creating 100% pure cannabis oil and cannabis terpenes—with no fillers or additives. You can count on their all-nat-ural Cannabis products to create the right experience every time, from sharing good times with friends to relaxing before bed. Dosist - We choose to partner with Dosist because we believe in their mission of delivering health and happiness through their proprietary dose vape pen. Dosist’s vape pens were devel-oped based on the science behind the cannabis plant to provide functional benefits, such as sleep aid, pain relief, euphoria, energy, and relaxation. Their commitment to safe, targeted, and effec-tive cannabis-based medicines led to the development of their proprietary delivery device, the dose pen by Dosist. It is designed specifically to deliver a precise dosage of cannabis formulas each time, guaranteed. Dosist has determined the exact balance of cannabis-derived compounds necessary to create targeted products that deliver a consistent response while controlling the sometimes overwhelming psychoactive effects commonly associated with cannabis consump-tion. The Dosist pen was voted one of Time Magazine’s Top 25 Inventions of 2016. KIVA Confections - KIVA Confections creates cannabis-infused confections and is one of the most recognized cannabis edibles companies in California. Its founders developed a mission statement that goes beyond merely delivering a better edible. It includes a commitment to effica-cy, food safety, and business integrity. Consumers love KIVA’s products because of their certi-fied potency, incredible taste, and informative packaging. KIVA offers over a dozen varieties of chocolate edibles, mints, and gummies. Their artisan confections have garnered multiple awards and recognition in the marketplace, including eight Best Edible wins. 1.6.1.V. PRODUCT LINE • ueritage SWEET FLOWER "j 58 Aster Farms - Located in Northern California, Aster Farms is committed to clean cultivation and pesticide-free, sustainably produced cannabis. As a third-generation family business with roots in olive oil, Aster Farms believes wholly in the power of nature to develop an excellent product. Pure Beauty - Pure Beauty encompasses a holistic approach to every aspect of their business. They have developed a “no run-off” cultivation technique keeping surrounding water safe for inhabitants. They utilize friendly bacteria, fungi, and protozoa, which provide nutrients and pro-tection. Their sustainability ethos also applies to packaging. Pure Beauty promises never to place profits over a clean and beautiful earth. Rose Delights - Rose is a premium edibles brand combining creative culture, sustainable agri-culture, and award-winning chefs. They are infused with single-strain flower rosin, meticulously pressed in-house. They partner with local fruit farms and purveyors to ensure their environmen-tal practices go above and beyond state regulations. Moon Made Farms - Moon Made Farms has committed to advocacy, education, and research regarding the benefits of organic sun-grown cannabis. In addition to a pesticide-free, organic cultivation process, Moon Made Farms serves on the International Cannabis Association (ICFA) board, whose mission is to empower traditional farmers. Cosmic View - Cosmic View is 100% committed to sourcing only the most holistic, pesticide, and solvent-free ingredients that are grown and processed with sustainable farming methods. Their full sun California cannabis is made with a low-pressure CO2 supercritical extraction process to retain the full spectrum of terpenes and cannabinoids. Their herbal formulations are infused with wildcrafted or holistically grown, 100% pesticide-free herbs in heirloom Northern California extra virgin olive oil from Sonoma County. They use no hemp, isolates, added terpenes, additives, pre-servatives, flavorings, sweeteners—only the purest ingredients for the purest medicine. All their products are science-based and made by hand with love in San Rafael, California. Dr. Robb Farms - Sweet Flower is currently working on a partnership for our in-house line of flower and pre-rolls slated for 2021. The mission of Dr. Robb Farms is to provide quality, pes-ticide-free medicine to the California market. At their core, Dr. Robb Farms believes that their product can help enhance the quality of life and health. They believe in using science to produce consistent quality medicine and that by applying sound scientific methods to create clean medi-cine that is measured and safe for the public to benefit from. Small CultivatorsAs part of our highly curated product selection, the flower brands we carry represent the industry’s richly steeped history of craft, small-batch growers, and large scale cultivators. We seek out special and unique brands while supporting legacy brands, which will always remain an essential part of our curation process. Our experience has taught us that high-quality products aren’t dependent upon the size of the cultivator. We have found that small-scale cannabis cultivators are especially desirable because they can deliver small-batch craft products, focused and curated for specific markets. We highlight these products in our current stores to help promote small cultivators and educate our customers on where our products come from. Small cultivators we currently carry include: 1.6.1.V. PRODUCT LINE I tr :.-:r .-.---/ ueritage SWEET FLOWER "j 59 Legacy Strains - Supplying the Los Angeles medical cannabis industry since 2007, Legacy Strains is ethically produced cannabis. They grow locally and employ Angelenos—paying a liv-ing wage to all their employees. They utilize the most up-to-date, environmentally sound meth-ods possible, including pesticide-free, fungicide free, and growth hormone-free. Legacy Strains ensures their product is as clean as it gets. Ball Family Farms - Ball Family Farms’ flower is hand-crafted from the finest raw and organic nutrients. They proudly cultivate with meticulous attention to detail, developing and producing in-house to the most precise standards. In December 2020, Sweet Flower partnered with Ball Family Farms to bring customers exclusive pre-rolls. Social Equity BrandsSweet Flower’s philosophy and policy of inclusion extends not only to its hiring practices and the customer base it serves but into the types of cultivators and manufacturers we carry. To select inclusive brands, we work closely with Breeze Distro. Founder and CEO Amber E. Senter has 20+ years of marketing experience. Senter’s voice is trusted in the growing cannabis industry, as is her unsurpassed knowledge of the end medical and recreational user base. Additionally, she is the Co-Creator and Executive Director of Supernova Women. This organization is dedi-cated to empowering people of color to become self-sufficient cannabis industry shareholders. Under Amber’s lead-ership, Breeze is a distribution company specializing in economic inclusion and small cultivation brands, including The Congo Club and Leisure Trees. We are proud to carry a number of BIPOC and female-led brands. We highlight these brands in our current stores to promote this vital part of the industry and educate our customers on where our products come from. A few of these brands include: SF Roots - SF Roots is a community-based lifestyle and cannabis company. As one of San Fran-cisco’s first social equity brands, SF Roots is dedicated to building a more sustainable industry by leading with our core values of compassion and community. La Familia & Agua De Flor - Herban Medical developed brands La Familia and Agua De Flor to introduce cannabis consumers to Mexican culture by way of Los Angeles. A Latinx owned company, they are devoted to producing accurately potent products while maintaining the best taste. As social equity programs across California emerge, creating more opportunities for small cultivators and econom-ic inclusion, we continuously look for new and emerging brands to promote and support. Additionally, we carry and highlight several brands that take sustainability above and beyond. More information about our sustainable brand support can be found in Section 7.1.2. Environmentally Sustainable Business Model. 1.6.1.V. PRODUCT LINE ueritage SWEET FLOWER "j 60 Sweet Flower ProductsSweet Flower also carries Sweet Flower-branded premium loose pre-packaged flower with a strong focus on the product’s science and genetic makeup. These products are sourced by us locally from licensed cultivators in Carpinteria. Sweet Flower is currently working on a new partnership for our in-house line of flower and pre-rolls slated for 2021. For our branded flower, the objective is in partnering with growers to bring those hard to find clas-sic cultivars back to market, and of course, sourced with ethical sustainability in mind. As mentioned above, in De-cember 2020, Sweet Flower partnered with Ball Family Farms to bring customers exclusive individually packaged pre-rolls. We plan to manufacture, process, and package other Sweet Flower-branded products at our fully licensed Downtown Los Angeles Arts District distribution and manufacturing facility in the future. TYPES OF PRODUCTSSweet Flower’s culture is built around the positive contributions of cannabis products for our bodies, minds, and lives with responsible use. This means stocking the highest quality products in our stores. Due to state regula-tions and Bureau of Cannabis Control (BCC) requirements, every product Sweet Flower carries must come from a state-licensed cultivator and be certified by an independent third-party lab to be free of pesticides, heavy metals, and harmful or inorganic chemicals. Sweet Flower is committed to carrying a range of all-natural, pesticide-free premium cannabis products, including topicals, tinctures, edibles, vapes, pre-rolls, and loose flower. Loose Flower - Flower can be consumed in many ways, but usually, it is smoked in the form of a rolled joint or in a bong or a pipe. Different cannabis strains tend to produce distinct effects. For energy and creativity, snag a Sativa. For relaxation and calm, try an Indica. For a balanced high, have a hybrid. Cannabis flower starts at $ per 1/8th ounce package. Cannabis flower brands carried at Sweet Flower include: 22Red, A Golden State, Bloom Farms, CRU Cannabis, Canndescent, Pure Beau-ty, Claybourne Co., Good Flower, Madrone, Marley Natural, Northern Emeralds, THC Design, The Cure, and Flow Kana. Pre-Rolled Flower - Cannabis flower is also available in pre-rolled joints, whether in multi-packs or single, and consumed by smoking. They are also available in a variety of Indica, Sativa, and Hybrid strains. Our pre-roll selections start at $ for a single pre-roll and $ for a pack. Cannabis pre-rolled flower brands carried at Sweet Flower include: 22Red, A G den State, Bloom Farms, CRU Cannabis, Canndescent, Pure Beauty, Claybourne Co., Good Flower, Madrone, Marley Natural, Northern Emeralds, THC Design, The Cure, Dr. Robb Farms, Ball Family Farms, SF Roots, Flow Kana, and Aster Farms. Edibles - Chocolates, cookies, mints, gummies, capsules, and many more raise the bar on snacks. Edibles are perfect for when you want a sustained, smoke-free high. The effects of an edible may take a while to kick in, so eat a little at a time, then wait to see how it affects you. Sweet Flower offers many low dose options. Our wide rang of edibles include single-serving packages start at while multi-serving pack-ages start at $ Edible brands carried at Sweet Flower include: Be e, Wyld, Breez, Kiva Con-fections, Kiko o, Pantry, Plus, and Satori. 1.6.1.V. PRODUCT LINE ueritage SWEET FLOWER "j 61 Vape - Vapes act fast and are designed for convenience and discretion. Within a vape pen, a bat-tery-powered heating coil warms the cannabis oil in the cartridge until it begins to vaporize. You can then inhale. Many vape pens also indicate once a dose has been reached and may vibrate or light up once you have inhaled sufficiently. Some vape pens are reusable. Replace the cartridge or battery, and you can continue to enjoy. Others are recyclable and will be replaced entirely once finished. Disposable va e pens start at $ Vape cartridges are sold in 0.5 gram and 1.0 gram varieties and have an $ starting price. pe brands carried at Sweet Flower include: A Golden State, Besito, Bloom arms, Blue River, Buddies, Dosist, Field Extracts, Good Flower, and Jetty Ex-tracts. Tincture - Tinctures are liquid herbal extracts typically taken using a dropper and placing the liquid underneath your tongue. They can also be mixed into food or teas. A tincture’s CBD:THC ratio indicates how much of each compound is in the product. A tincture with the ratio 18:1 con-tains 18 parts CBD to 1 part THC, whereas 1:1 means it has equal amounts of both. Tinctures start at $ per bottle. Tincture brands carried at Sweet Flower include: Breez, Care by Design, Cosmic Vi w, Humboldt, Apothecary, Om Edibles, Papa & Barkley, and Vet CBD. Topicals - Topicals, such as balms, lotions, creams, salves, and oils, can be used for various pur-poses, including alleviating pain and soreness, increasing arousal and pleasure, and just for fun. A topical’s CBD to THC ratio indicates how much of each compound is in the product. Topical products start at $ Topical brands carried at Sweet Flower include: Apothecanna, Cos-mic View, Humble Flower o., Kush Queen, Mary’s Medicinals, Papa & Barkley, and Quim. Concentrates - Cannabis concentrates, oils, and extracts offer high potency benefits that differ from smoking flower. Concentrates come in various product types, forms, and consistencies such as sift, shatter, wax, and rosin. Concentrates are an excellent option for experienced cannabis consumers who seek to increase the intensity of their high or flavor connoisseurs who want to taste the most excellent terpene profiles. Concentrates or extracts start at $ per gram, with waxes and crumbles starting at $ per prod-uct. Concentrate brands carried at weet Flower include: Bloom, Blue River, Buddie F/ELD, Hot Nife, Nasha, and Raw Garden. Beverages - Beverages are infused with cannabis for a smoke-free high. Infused beverages can be a healthier, lighter alternative to beer, wine, and spirits. Sweet Flower offers many low dose options, including teas, soft drinks, sparkling waters, and tonics. Our selection of beverages start at $ per single-serving. Beverage brands carried at Sweet Flow-er include: Artet, AbsoluteExtracts x Lagunitas, CANN, Kikoko, and Somatik. Cannabis Accessories - Accessories carried at Sweet Flower include: Vaporizers, Rolling Pa-pers, Pip s, Bongs, Lighters, Stash Jars, and Sweet Flower branded merchandise. Accessories start at $ per item. 1.6.1.V. PRODUCT LINE ueritage SWEET FLOWER "j 62 FLOWER Loose Flower Pre-Rolls TOTAL FLOWER MANUFACTURED PRODUCT Edibles Vape Tincture Topicals Concentrates Beverages TOTAL MANUFACTURED PRODUCT ACCESSORIES TRANSACTIONS % 18.74% 23.86% 42.6% 23.8% 15.74% 3.85% 3.22% 1.88% 1.5% 49.99% 7.39% DOLLARS % 25.1% 19.5% 44.6% 20% 20.3% 5.3% 4% 1.7% 1.3 % 52.6% 2.4% ESTIMATED PERCENTAGE OF SALES OF FLOWER &MANUFACTURED PRODUCTSWe can estimate our sales at Heritage by Sweet Flower will be approximately 42.6% flower (loose flower and pre-rolls) and 50% manufactured products (edibles, vapes, tinctures, topicals, concentrates, and beverages). About 7.39% of our sales consist of non-cannabis products, such as accessories. This estimate is based on the percentage of sales at our current stores in California: 1.6.1.V. PRODUCT LINE FLOW ER I I I I I I ueritage SWEET FLOWER "j 63 1.6.1.vi. Delivery If proposed, describe delivery service procedures, number of vehicles and product security during transportation. Heritage by Sweet Flower plans to offer retail delivery to our customers. We successfully launched delivery at our Studio City, Melrose, and Downtown Los Angeles stores in November 2019. We have completed thousands of compliant customer deliveries across our existing California stores. We plan to utilize the same delivery procedures in Fresno. The Sweet Flower delivery program allows us to further our goal of providing equitable and safe access to all in our community. Although we are an adult-use cannabis retailer, many of our customers purchase our products for medical use. A number of customers are homebound or have mobility issues. We have developed a safe, reliable delivery program to address their needs and better serve all members of our community. Delivery has proven essential during the current COVID-19 crisis. While many cannabis retailers, both large and small, outsource delivery through platforms (such as Eaze), Sweet Flower has established its own reliable and effective delivery program at all its locations. This ensures our standards and procedures are followed from receiving the order through delivery. Delivery Drivers are provided with masks, gloves, hand sanitizer, and sanitizing wipes to ensure cleanliness and safety during each customer delivery. Delivery Drivers must sanitize all tablets and card readers between each delivery. Customer Ordering Processustomers are able to access the delivery menu via our website sweetflower.com. The online menu utilizes the I Heart Jane platform. I Heart Jane is a fully-automated eCommerce platform for cannabis retailers. I Heart Jane inte-grates with our Greenbits point-of-sale (POS) system to automatically import our menu of products. The menu always updates with new and sold out items. I Heart Jane features built-in compliance, including electronic age and address verification, and purchasing limits. I Heart Jane’s online shopping platform is aesthetically pleasing and very sim-ple to use. The online menu features professional photos and detailed descrip-tions for each product offered. Customers can filter products by type: flower, pre-rolls, vaporizers, concentrates, edibles, beverages, tinctures, topicals, etc. Products can also be sorted by Indica, Sativa, and Hybrid; THC and CBD percentage; weight; and sales promotions. Once customers have added their selections to the shopping cart, they are able to purchase their items via the check-out process. Customers have the option of delivery or in-store pick-up. During the online check-out process, customers are prompted to input their name, email, address, phone number, and upload a photo of their valid gov-ernment-issued identification (ID). Customers are also asked if they have a state-issued medical cannabis card or a physician’s recommendation. If the customer checks the medical card or physician’s recommendation box, then 1.6.1.VI. DELIVERY ueritage SWEET FLOWER 64 they are asked for the card number or a copy of the physician’s recommendation and expiration date. Sweet Flower staff receives the medical card or recommendation information and verifies it following the steps outlined in Sec-tion 1.6.1.i. Customer Check-In Procedures. Delivery Fulfillment ProcessPlaced Inventory Clerk receives placed orders through the I Heart Jane administrator dashboard. The Inventory Clerk gets the order from I Heart Jane, verifies the customer’s information and ID (or physician’s recommenda-tion), confirms that the order is inside the delivery zone, and reviews the order. I Heart Jane’s system provides built-in compliance checks, including address and age verification, and purchasing limits. Then, the Inventory Clerk “checks in” the customer in Sweet Flower’s POS system, Greenbits, as a delivery cus-tomer. A delivery request receipt is generated and the clerk submits the delivery request receipt into Sweet Flow-er’s delivery management software, OnFleet. The electronic delivery request receipt for each delivery of cannabis goods will include:• The name and address of Heritage by Sweet Flower; • The first name and employee number of the Heritage by Sweet Flower Delivery Driver who delivered the order; • The first name and employee number of the Heritage by Sweet Flower employee who prepared the order for delivery; • The first name of the customer and a Heritage by Sweet Flower-assigned customer number for the person who requested the delivery; • The date and time the delivery request was made; • The delivery address; • A detailed description of all cannabis goods request-ed for delivery. The description shall include the weight, volume, or any other accurate measure of the amount of all cannabis goods requested; • The total amount paid for the delivery, including any taxes or fees, the cost of the cannabis goods, and any other charges related to the delivery; and • Upon delivery, the date and time the delivery was made, and the handwritten or electronic signature of the customer who received the delivery. At the time of the delivery, the Delivery Driver of the retailer provides the customer who placed the order with a hard or electronic copy of the delivery request receipt. The Delivery Driver retains a hard or electronic copy of the signed delivery request receipt for Sweet Flower’s records. Next, the Inventory Clerk pulls the order from inventory. They place all cannabis products into an opaque, child-re-sistant exit bag for pickup by the Delivery Driver. The Delivery Driver and the Inventory Clerk, who prepared the package, review the order to verify the correct items were placed into the exit bag. The Delivery Driver then places the exit bag into a fully enclosed, discrete bag or backpack before transporting it to the delivery vehicle. The delivery vehicle will be parked in the designated delivery vehicle parking spot located at the back of the prem-ises to ensure the safe transportation of the products to the vehicle. This area at the back of the building is under video surveillance. The Delivery Driver shall place the discrete bag containing the orders into a locked box that is secured inside the delivery vehicle until the driver arrives at the delivery location. Sweet Flower Delivery Drivers are trained to be alert at all times while loading the vehicle to prevent any potential risk of threat. Security Personnel shall monitor the loading area while a delivery vehicle is being loaded. OnFleetThe Sweet Flower Delivery Drivers utilize the OnFleet delivery management software for logistics management and route optimization. OnFleet is a technology platform that consolidates routing and dispatch operations in one intui-tive web-based dashboard. The integrated route optimization engine considers time, location, capacity, and traffic to produce the most efficient routing solutions. 1.6.1.VI. DELIVERY ueritage SWEET FLOWER "j 65 OnFleet, has a built-in Global Positioning System (GPS) and provides Sweet Flower management and the customer with real-time tracking of the delivery vehicle. Using OnFleet, Sweet Flower management is able to see which deliv-ery is in process and which deliveries have been completed. OnFleet tracks all routes taken by the Delivery Driver and records it into the OnFleet database, which Sweet Flower management can access easily and immediately to pull any and all reports. Additionally, OnFleet tracks all delivery data and maintains logs that include all stops from the time a Delivery Driver leaves the premises to the time that the Delivery Driver returns. Sweet Flower management can use the OnFleet management dashboard to communicate with the Delivery Driver. The Driver can communicate with the in-store team using OnFleet’s talk-to-text feature. All Delivery Drivers are equipped with a list of contact names and numbers in case of an emergency. After the Delivery Driver accepts and starts the order on OnFleet, OnFleet al-lows the Delivery Driver to choose the mapping application for route guidance (Google Maps, Apple Maps, Waze) and directs them to the delivery location. After the Delivery Driver completes the order, OnFleet directs them to either the next delivery location or back to the retail premises using the same map-ping application. When completing multiple deliveries, OnFleet’s proprietary routing algorithm automatically optimizes the Delivery Driver’s route sequence based on deliv-ery location. However, Sweet Flower management has the ability to reroute the Delivery Driver’s route sequence using OnFleet’s management dashboard. Delivery to the CustomerUpon arriving at the delivery destination, the Delivery Driver reviews and follows any delivery instructions provided by the customer. The Delivery Driver then requests to see the customer’s ID to verify the customer’s identity and age. This is reviewed against the customer’s name and ID on the delivery request receipt prior to collecting payment. The Delivery Driver uses OnFleet’s age verification functionality to verify that the e customer’s age is at or above the minimum age requirement by scanning the ID using the mobile device operating system prior to completing the transaction. Once payment is made and the customer signs for the delivery, the Delivery Driver hands the prepared exit package containing the cannabis goods to the customer, completing the transaction. After the Delivery Driver completes the transaction with the customer, OnFleet automatically generates a delivery request receipt, including the date and time the delivery was made and the customer’s signature, which is saved into Sweet Flower’s delivery reports and a copy is emailed to the customer. Delivery Log - Each Delivery Driver shall maintain an electronic log that includes all the stops from the time the Delivery Driver leaves Heritage by Sweet Flower premises to the time that the driver returns to the premises and the reason for each stop. Upon returning to the premises, all undelivered cannabis goods shall be returned to inventory, and all necessary inventory and track-and-trace records shall be updated as appropriate that same day. 1.6.1.VI. DELIVERY ueritage SWEET FLOWER "j onf.lt/xyz l 23 C • Jos h Blumstei n Sweet Flower 17 Minutes ~ 2019 Toyota Prius Blue, Plate 243TVP f 123 Apple Tree Lane Fresno , CA 93711 • V ---< > [l] (5) 66 Number of Delivery Vehicles Sweet Flower will have two hybrid delivery vehicles and plans to hire three Delivery Drivers. We will assess the number of customer deliveries per day within the first 60 days of operation and will add additional vehicles and/or Delivery Drivers if necessary. Delivery Security All deliveries of cannabis goods shall be performed by an employee of Sweet Flower. Each Delivery Driver shall be at least 21 years of age. All deliveries of cannabis goods shall be made in person. During deliveries, Delivery Drivers carry a copy of Sweet Flower’s current state and local license, the employee’s government-issued identifi-cation, and an identification badge provided by the employer. Each Sweet Flower’s employee shall always carry a copy of the non-storefront retail license and a copy of the QR Code certificate issued by the Bureau while engaging in the transportation of cannabis goods. Sweet Flower’s Delivery Driver carrying cannabis goods for delivery shall only travel in an enclosed motor vehi-cle. While carrying cannabis goods for delivery, each Sweet Flower’s Delivery Driver shall ensure that cannabis goods are not visible to the public by placing the cannabis goods in an unmarked, opaque lockbox that is secured on the inside of the vehicle. Loading of the delivery vehicles shall take place in the designated loading area at the back of the building, which is under video surveillance and monitored by Security Personnel. All Sweet Flower de-livery vehicles shall be equipped with a vehicle alarm system. Vehicles used for the delivery of cannabis goods are outfitted with a dedicated Global Positioning System (GPS) device for identifying the geographic location of the delivery vehicle in real-time. The GPS and the OnFleet platform will allow Sweet Flower to identify the geographic location of all delivery vehicles that are making deliveries for Sweet Flower at all times. Vehicle Standards - Vehicles used for the retail delivery of cannabis will:• Be owned and registered to Sweet Flower.• Be less than ten years old at all times during its ser-vice life.• Be insured through a commercial auto policy provid-ing no less than $1M in personal injury and property damage coverage per occurrence.• Be free of graphics or other markings indicating that the vehicle is associated with cannabis delivery.• Be equipped with an audible car alarm system con-figured to also cause flashing of vehicle headlamps and brake lamps upon activation. • Be equipped with a permanently mounted commer-cial grade safe dedicated to cannabis products.• Be equipped with a permanently mounted commer-cial grade drop safe dedicated to currency.• Be equipped with Bluetooth wireless technology, which allows the Delivery Driver to use hands-free communication.• Be equipped with GPS tracking technology provid-ing for real-time monitoring through a standard web browser. Proprietary software will not be required to access real-time monitoring. Access to GPS data will be restricted to management personnel. Managers will have unique logins and strong passwords incorporating letters, numbers, and special characters. GPS will report location data no less frequently than every one minute. GPS data will be maintained for a period of no less than 90 days. Upon request, GPS data will be made available to regulatory agen-cies. Testing of GPS systems for accuracy and reliability will be performed on a daily basis. Testing will be record-ed by the Security Director. Devices experiencing technical difficulties relating to GPS operability or accuracy will not be used for cannabis delivery until such time as the GPS tracking system is restored to full functionality. Safe Haven Identification - Heritage by Sweet Flower will identify, for each area in which a delivery is scheduled, a designated safe zone. The safe zone is a location that the Delivery Driver will be directed to respond to in the event that the driver is being followed. Safe zones should be highly populated, well-lighted locations known to be equipped with surveillance equipment, law enforcement, or Security Personnel. These may include major shopping malls, major airports, hospital emergency departments, universities, or similar high-density environments. 1.6.1.VI. DELIVERY ueritage SWEET FLOWER "j 67 1.7. Customer Product Handling Procedures Retail FloorHeritage by Sweet Flower’s Retail Floor features an open floor plan filled with natural light, overhead lighting, live plants, concrete floors, a spacious Check-Out Counter, branded wall decals, and screens featuring education mate-rial. The design of Sweet Flower’s interior spaces always focuses on safety, security, compliance, and education for our customers. Heritage by Sweet Flower’s interior will have frosted glass windows separating the Retail Floor from the Screening Lobby, allowing natural light into the space. Near the retail entry, there will be a customer education seating area equipped with digital displays where customers can consult with team members to get the most informed recom-mendations on products to suit their specific needs. Sweet Flower ’s selection of products are displayed in custom wood wall shelves and glass display cases. These displays allow products to be easily viewed and browsed by customers while enabling team members to monitor without any visual barriers. All cannabis packaging on the Retail Floor is for display purposes only. The packages are emptied of any cannabis product before being placed on display on the Retail Floor. This allows customers to study the product packaging and learn about the product without allowing them access to an actual cannabis product. Multiple display packages for each product are available, allowing more than one customer to look at a product package at a time and speed-ing up each customer’s shopping experience. All cannabis inventory is stored in the secured limited-access Inven-tory Room, which is not accessible to customers. A limited number of certain products to meet the daily demand are placed in locked cabinets behind the Check-Out Counter. Select cannabis flower products are placed in secured inspection jars inside the locked display cases, which are not accessible to customers without team supervision. Customer Shopping ExperienceAfter a customer checks in at Reception and all identification and compliance checks have been completed, the customer is then granted access to the secured Retail Floor via an electronic buzzer. Upon entering, the customer is greeted by a Sweet Flower Sales Associate and asked if they need assistance or prefer to browse independently. Once a customer has selected items to purchase, the Sales Associate adds that item to the customer’s virtual shop-ping cart using a tablet equipped with the I Heart Jane application. I Heart Jane software tracks Sweet Flower ’s product inventory and integrates with our Greenbits POS system to automatically import our products’ menu. Once a customer has selected all the products they would like to purchase, the Sales Associate electronically sends their order via I Heart Jane to the Inventory Clerk in the limited-access Inventory Room. Inside the secure Inventory Room, the order is automatically printed on a ticket through a receipt printer. The Inventory Clerk then takes the ticket, gathers all the items in the customer’s order, and places them in a small basket. The Inventory Clerk checks-off each item with a pen as they place them into the basket. Once all items for the order have been gathered from within the Inventory Room, the Clerk then opens the locked Inventory Window and passes the basket through to the other side. The basket is received by another Sales Associate who is stationed behind the secure Check-Out Counter. When a customer is ready to check-out, the Sales Associate scans each product via the Greenbits POS system and completes the transaction with the customer’s preferred payment method. The cannabis is placed in an opaque exit package for the customer. As required by the Bureau of Cannabis Control (BCC), all cannabis goods will be sold in 1.7. CUSTOMER PRODUCT HANDLING PROCEDURES ueritage SWEET FLOWER "j 68 child-resistant packaging; however, Sweet Flower also has child-resistant exit bags available upon request. Once a customer completes their purchase, the customer is encouraged to exit the premises. Customers Handling Cannabis ProductsCustomers may be permitted to inspect cannabis products on the Retail Floor, which is allowed under limited circumstances by the BCC in accordance with the California Code of Regulations Section 5405. Sweet Flower has select can-nabis flower products removed from their packaging and placed on display for customer inspection in a secured inspection container. Cannabis flower is the only cannabis product available for customer inspection—topicals, tinctures, and edibles are never removed from their packaging for display. The canna-bis flower inspection containers allow for customers to visually inspect the flower more closely before purchase. No testing or consumption of products is permitted. The inspection containers are stored in the locked display cases on the Retail Floor. The containers are not readily accessible to customers for handling without the assistance of a Sweet Flower employee. A retail employ-ee remains with the customer at all times that the container is being held and inspected by the customer. Employees allow only one container to be exam-ined by a customer at a time to prevent theft. The cannabis goods removed from their packaging for inspection are not to be sold or consumed and shall be destroyed in accordance with Sweet Flower’s Waste Management Plan. It is Sweet Flower’s policy to minimize the amount of product that is removed from packaging. 1.7. CUSTOMER PRODUCT HANDLING PROCEDURES EDIBLES SWEET FLOWER ueritage SWEET FLOWER "j 69 1.8. Customer Education Our commitment to customer education inspires all aspects of Sweet Flower operations, including our store layout, marketing, and website. Every location is designed with ample room for seminars and community education. We aim to empower the Fresno community and Sweet Flower customers through can-nabis education. We know not every customer will understand the complexities of cannabis, its effects, dosages, or onsets—so we have developed our edu-cation program and materials with that in mind. Our staffing policies ensure each customer has access to an individual Sales Associate who can answer any questions, and guests are never rushed. Our focus on customer experience allows first-time visitors to feel comfortable and receive education and product recommendations from the team. We have served thousands of customers and have been commended for our service excellence. Sweet Flower is the model for a new generation of dis-pensaries because it brings attention to patient experience and design. Our customer education focuses on safety, first and foremost. Our goal is to make all of our customers feel comfortable; therefore, we have tailored our retail experience to those with little to no cannabis experience. We know not every customer will understand the complexities of cannabis, its effects, dosages, or onsets—so we have developed our education program and materials with that in mind. Sweet Flower’s retail space features an open concept, welcoming customers to educate themselves alongside knowledgeable Sales Associates. If desired, expert team members guide our guests throughout their entire experience, ed-ucating them about cannabis, effects, risks, benefits, and responsible consump-tion. Our retail environment has been designed to encourage conversations that inform and empower first-time cannabis consumers and connoisseurs alike. Our customer lounges serve as a comfortable space for customers to discuss products in-depth with our knowledgeable team and learn first-hand from Brand Managers during in-store demonstrations. We offer curated effect based product bundle kits—empowering our new customers when making their first purchase at Sweet Flower and allowing them to try a handful of products tai-lored to their needs. Many consumers are still unclear on current cannabis laws regarding retail purchases and consumption. For Heritage by Sweet Flower, we will create a Responsible Use Guide, which will spell out what a customer can and can’t do. This includes reminding them to never drive under the influence of canna-bis, never consume on public streets, to respect our neighbors and community, and safe storing of their products at home. The Responsible Use Guide will be posted to be visible to customers upon entering, and copies will be available to take home. These materials will be available in both English and Spanish. We intend to hire team members that are bilingual whenever possible. Sweet Flower is in the process of creating proprietary educational materials in col-laboration with industry leaders, including compliance consultants, cultivators, and branding and design experts. 1.8. CUSTOMER EDUCATION ueritage SWEET FLOWER "j We're here to help Whether you're new to cannabis or an expert, your cannabis needs may be changing with this new way of fiving. 3:22 PM Just wanted to shoot you guys a message and say thank you so much for the high quality and thorough recommendation. I received my order today and the delivery process was so incredibly seamless and the products you recommended for my daytime anxiety seriously helped me today. I'm excited to try my sleep time tincture and finally get some rest. THANK YOU! ~ Message ... 70 Before Visiting Sweet Flower - Original Original Sweet Flower branded content for proactive educational out-reach is featured on all social media channels. Our website has helpful information regarding consumption meth-ods, potency, and effects. Customers can get information on purchasing, including amount per visit, payment types, ID requirements, hours of operation, directions, and parking. We can also use our Instagram (@sweetflowershops) platform to communicate directly with our customers, offering guidance and product recommendations to first-time cannabis consumers. Our website features a Chatlio tool for our customers. Chatlio is a live chat application that allows us to answer questions about our products and offerings from our customers in real-time. This is a valuable and educational tool for customers who prefer to use our deliv-ery or in-store pick-up options. Our website delivery menu features an education component with in-depth descriptions for each product, including precise information about potency. In addition, our online menu platform, I Heart Jane, highlights “feelings” (such as relaxed, blissful, pain-free, sleepy) for each product as described by previous customers. Each product page also displays a high-resolution photo of the product and package to ensure the customer knows what they are ordering. Symposiums - Our community events and educational programming have become widely popular at our current locations serving to educate and unite our customers. As the cannabis industry grows and changes, we are commit-ted to our customers and team’s continued education. Heritage by Sweet Flower will periodically host symposiums where other industry leaders will be invited to give presentations on their areas of expertise—anywhere from the health and wellness benefits of cannabis for seniors, to organic farming, to the current state of legislature and regu-lation. We also envision using our space for mindfulness and wellness seminars. All events, presentations, and other uses of the space will comply with regulations regarding the premises’ use, including verifying attendees’ identi-fication and age. Over the past few months, we have worked with our brands to streamline education in the age of COVID with virtual workshops and experiences. See Section 1.9. Marketing for further information on events and how we have transitioned events online during the current COVID-19 crisis. Youth Prevention - Sweet Flower is committed to preventing youth access to cannabis and educating our custom-ers and the community about the importance of preventing youth access. Please see Section 7.2. Public Health Out-reach & Educational Program for further details on our plan to develop a public health outreach and educational program that outlines the risks of youth use of cannabis and identifies resources available to youth-related drugs and drug addiction. Maintenance & Updating of Our Materials - Sweet Flower updates all educational materials and content as nec-essary to reflect changes in state and local laws and new findings within the cannabis industry. 1.8. CUSTOMER EDUCATION ueritage SWEET FLOWER "j 71 1.9. Marketing Sweet Flower is on a mission to elevate the perception of cannabis. We ac-knowledge that cannabis can be confusing, overwhelming, or even frightening to some. At Sweet Flower, we recognize the importance and responsibility to inform consumers in clear, direct, and tasteful ways. We balance authority and sophistication in a compelling way without being intrusive. We aim to create experiences that build confidence, comfort, and curiosity. We are digital-first, with a heavy reliance on a reputation that has been built around trust, trans-parency, and an unparalleled customer experience that drives organic word of mouth. We also understand that developing a sound marketing strategy is vital to our success. Kiana Anvaripour, Sweet Flower’s Chief Marketing Officer, oversees all mar-keting and brand initiatives, including concept, strategy, launch, and execution. Ms. Anvaripour has over 17 years of experience building premium interna-tional brands. She creates genuinely thoughtful and compliant strategies that align with our brand and the communities we serve. She works to share Sweet Flower’s mission: Set a new standard for modern cannabis retail that is inclu-sive, diverse, and approachable by all. Our marketing approach is to stay true to these core values and educate our community about using cannabis respon-sibly to enhance their lives. We attract an audience with compelling content, incredible customer service, brand integrity—and an assortment of the finest products. Downtown Los Angeles is different from Studio City, Melrose is different than Culver City, and Fresno is uniquely its own. We understand that each commu-nity is distinctive and tailor our marketing to match that of the communities we operate in, without compromising the authenticity of Sweet Flower. Our ability to seamlessly integrate into these diverse communities is a testament to our brand’s appeal to a wide demographic. The Fresno community is our priority. We are committed to enriching Fresno while maintaining minimal visibility. Sweet Flower believes that the cannabis industry still has a great deal to learn from consumer-facing mainstream industries. By uniting world-class branding and retail practices, we have created a more engaging, user-friendly, and wel-coming experience for a diverse group of consumers. Sweet Flower creates marketing and advertising plans which comply with local and state laws. Our plans are centered around customer education and include information on cannabis use, dosage, product variety, and wellness-re-lated topics. Thus, our campaigns are designed around health, wellness, and education, with a visual focus on all things California. Our name and logo were created to emanate a sense of independence from the old and negative associations people might have to cannabis in the retail space. The Sweet Flower name is deliberately not a specific callout to cannabis, but something sweet and fun. Our poppy flower logo, the Official State Flower of California, is designed to communicate a clean, sophisticated, approachable, and premium tone. 1.9. MARKETING © copyright Kayla Green 2019!3 ueritage SWEET FLOWER "j 72 Our visuals highlight the individuals who make up our community and root viewers in the experience of California. We consistently pair lifestyle images with local landscapes to create a distinctly West Coast air, blending the sunny with the urban. Sweet Flower is a brand that taps into the community’s sense of adventure, well-being, and creativity. We create campaigns around these feelings. Due to regulations, the cannabis industry faces many challenges when it comes to marketing and advertising. We use these constraints as a way to gener-ate creative ideas that stand out. As part of this, we seek partnerships with like-minded brands and individuals both online and at events. Community events and partnerships enable us to achieve our goal of destigmatizing and normalizing cannabis while strengthening our connection to the communities we serve. These events are focused on comprehensive education regarding cannabis and how to incorporate it into a healthy lifestyle. In the past, we have provided in-store weekly yoga classes in partnership with a local studio, tie-dying workshop, women in cannabis lecture and panel discussion, and an educational seminar on “clean vaping.” At these events, we bring together experts from the cannabis industry to connect directly with our community and further open discussion, education, and community connection. We recently collaborated with Chelsea Handler to create a curated kit of prod-ucts to celebrate her new HBO special, “Chelsea Handler: Evolution.” The set features Chelsea’s favorite Sweet Flower products, including cannabis-infused social tonic from CANN, chocolate-covered blueberries from Kiva Confec-tions, and pre-rolls from Aster Farms. Sweet Flower also partnered with small cultivator Ball Family Farms (BFF) to produce an exclusive pre-roll. This promotion includes a double pack designed to be shared with a friend. The BFF Pre-roll launched in December 2020. Additionally, our Los Angeles area stores partner with many popular food trucks to offer lunch with an in-store purchase. The food trucks we run promo-tions with are primarily BIPOC owned and operated, such as Belly’s, Billion-aire Burger Boys, All Flavor No Grease, The Lime Truck, Seafood Xperience, Fraiche Signature, and Roy Choi’s Kogi Taco Truck. This year Sweet Flower created the popular “Give Back Kit,” a curated prod-uct bundle with all proceeds benefiting Black Cooperative Investment Fund (BCIF) and Equity First Alliance. Sweet Flower has long supported the BCIF, a nonprofit whose mission is to create social change for the Black communi-ty through the primary strategy of building assets and wealth. BCIF provides microloans to promote economic empowerment for the African American community. In June, we partnered with Aster Farms + Coolhaus (both female-founded brands) during Pride Month, offering exclusive promotions that raised funds for a local LGBTQ+ organization for at-risk youth. Sweet Flower also matched each customer purchase with a donation. 1.9. MARKETING ueritage SWEET FLOWER "j SWEE;f;LOWER ASHR FARMS 6 COOL HAUS DELIVERY PROMOTION A S T E R FARMS OFFER VALID JUNE 17-18 Off..-i, an Am,, F.,m, P,,..Roll ,nd pint of CoolH,,,. FnJ<>ymint ;~,. ~•,.•m O,d,., 1h,. p,,..,oll nn •wtttflower.,om June 17-18 1nd • repr=hllYe from Cool H1u, will ,ont1,t you for lh-livery time .. i,.Juwsun Tl,u,,6118 .,,J Sat 6120 fu, yuu, i~"~'"""'• O,Je,> .. ill o,,i,..,,.,l'•••kly. lin,ikJ tu ll.., f11>t SO fH<>pl•-By redffffli"C ti,;, s.pecial, you agrff that your nam•, phone numbe,, email and adclress will la ,h.m:d w,lh Cool H1us for the purpo'I'! of'" crum del,vPry. Thoi 1nform1t1on w,11 not be ,tore<! ind w,11 0nlybeu>edfor1hisp,0moti0nalcffer. WER • • .. 73 We have moved many of our in-store events online during the current COVID-19 crisis, including yoga and workshops on stress relief, cooking with cannabis, and joint-rolling tutorials. We have had an overwhelmingly positive response from the Sweet Flower community as we do our part to stay connect-ed during a time that could otherwise feel isolating. Sweet Flower is proud to be the premier launch location for many up and com-ing brands: Pabst, Garden Society, A Golden State, Wunder, Mamma Mia, and many more to come in 2021. We often feature exclusive products from brands or are the first retailer to carry products from some of California’s favorite cannabis brands. Sweet Flower also offers Weekly Deals to our customers. Deals run each day of the week and feature various promotions, including 15-25% of certain prod-ucts. Updates about current sales and promotions are sent through our email list weekly. Customers may enroll in our rewards and loyalty program (uti-lizing the Spring tform) to earn points on every purchase and redeem those points for off an in-store purchase. Sweet Flower is committed to giving back, and we use partnerships and community-driven events, not only as a marketing tool but as a way to further integrate into the communities we serve. We look forward to the opportunity to bring similar exclusive partnerships and marketing incentives to the Fresno community. 1.9. MARKETING ueritage SWEET FLOWER "j 20%0FF RETAIL 1/ . . . • • • . . SWEET FLOWER TOTE AND LIGHTER INTROD UCING Chelsea Handler's Evolution Kit CANN LEMON L AVENDER 6-PACK • f TE RRA CHOCOLATE COVERED BL U EBERRY ED IBLES ASTER FARMS DAY PACK P 1D E pints & p re-ro lls, del iv ered tJ + / + -=[Jo? 2. SOCIAL POLICY & LOCAL ENTERPRISE PLAN 74 SOCIAL POLICY &LOCAL ENTERPRISE PLAN 2.0. Introduction The City of Fresno has been declarative and made addressing social and eco-nomic equality a priority—as evident through several city initiatives, studies, and programs. This commitment to economic inclusion is clearly a guiding principle in Fresno’s cannabis ordinance. According to The Fresno D.R.I.V.E. (Developing the Region’s Inclusive and Vibrant Economy) Initiative, a 2018 study by the Urban Institute revealed that “Fresno ranks 59th out of 59 for eco-nomic and racial disparity. In addition, [the] regional economy does not per-form strongly enough to create the volume and opportunities needed to break the cycle of chronic economic distress.”1 The Fresno D.R.I.V.E. Initiative was born in response to these findings. D.R.I.V.E. is a ten year Community Invest-ment Plan drafted with input from a 300-person steering committee represent-ing over 150 organizations in the Greater Fresno Region. Another example of Fresno’s commitment to social and economic equali-ty is the city’s collaboration with The Shared Prosperity Partnership (SP2). Launched in 2018, SP2 convenes local leaders in select communities across the United States to discuss challenges to inclusive growth and provide data, research, and access to national experts, networks, and financial resources.sharedprosperitypartnership.org Local leaders in Fresno have discussed how to create a new sort of cross-sector investment plan for years. Their intention was to develop a program centered on racial equity and driven by community leaders. D.R.I.V.E. members have succeeded in creating a strategic p detailing 18 investment initiatives. Col-lectively these initiatives call for billion of investment across three major areas: economic development, hu capital, and neighborhood revitalization. Sweet Flower’s Social Policy and Local Enterprise Plan directly aligns with these initiatives and our own core values of community engagement, public health and safety, trust and transparency, and inclusivity and diversity. Sweet Flower is dedicated to forming a strong and meaningful partnership with the city in order to move all Fresno communities forward. Our intention is to help transform the City of Fresno’s economic development by establishing a shared understanding of local policies and practices, and committing to new programs that explicitly prioritize social equity. Social equity starts with the representation and empowerment of marginalized groups in businesses. Sweet Flower is committed to this principle by respon-sibly integrating into the fabric of the community, providing good jobs to residents, and to giving back to the neighborhood in a sustainable and long-term manner. We believe in the importance of having company leaders that are diverse in their backgrounds and experiences. We are equally resolved in 1 fresnodrive.org/about 2.0. INTRODUCTION ueritage SWEET FLOWER "j 2. SOCIAL POLICY & LOCAL ENTERPRISE PLAN 75 hiring local members of the community who might be overlooked, ignored, or discriminated against due to race, income inequality, arrest history, or being a targeted population related to cannabis infractions. Our mission is to set a new standard for modern cannabis retail culture. The only way to do that is to embrace a philosophical and operational mandate of social equity within the business and the community. What does “social equity” mean to Sweet Flower? It means that we consider ourselves not only a brand or retail business but a community presence that strives to develop a robust and engaged relationship with all in the commu-nities we serve. That translates into meaningful employment opportunities that begin the process of “righting the wrongs of the past.” While we are fully aware that Sweet Flower alone cannot initiate total change across the econom-ic and social spectrum, based on our philosophy and track record, we believe that our commitment to embracing socially equitable practices and policies within our operational procedures will have a positive and lasting impact on the neighborhoods, and people of Fresno. We understand the vital importance of being authentically local in the cities we call home, in working transparently with local and state officials, in promoting community engagement and giving back, and in creating an all-encompass-ing company policy that upholds the foundational practices of inclusivity and diversity across staff. That is the way Sweet Flower has built a 21st-century cannabis business that not only serves and empowers its community and cus-tomers but empowers its employees. Our comprehensive Social Policy Plan supports Fresno’s goals of enriching all of Fresno but especially addresses social equity and the city’s vision of a more inclusive, prosperous, and sustainable future. 2.0. INTRODUCTION ueritage SWEET FLOWER "j 2. SOCIAL POLICY & LOCAL ENTERPRISE PLAN 76 2.1. Living Wage Describe whether the Commercial Cannabis Business is committed to offering employees a Living Wage. Sweet Flower is committed to paying all our employees a competitive living wage, above the median, non-skilled compensation. This core company principle is about more than just financially compensating people fairly and just-ly for their work. It is a straightforward action and communication to the industry, community, and employees that we value their time, service, and expertise. If we value our employees, our employees will value us. It also instills trust in the operational philosophy that working for Sweet Flower means being part of a diverse and inclusive team dedicated to a shared vision—diligently executing the values-driven mission of educating and engaging our cus-tomers and the communities we serve. We consider paying a living wage to be a necessary investment in the future of the business, brand, and most importantly, the City of Fresno—where all residents will be able to participate in the vision and reality of a flourishing, high-quality, diverse local economy. If we take a moment to look at some recent data regarding workers’ compensation in the City of Fresno, a chal-lenging reality emerges. Based on city data, Fresno’s poverty rate is higher than the state and county averages. At Sweet Flower, we see this as the perfect opportunity to engage with Fresno’s local economy and make a positive and lasting difference in the lives of hard-working Fresnans. Compared to the rest of California, the City of Fres-no’s population experiences lower rates of income. For the health and well-being of the entire community and workforce in Fresno, the moment is now for businesses to pay their employees a living wage. This clearly signals to people that the local Fresno economy is committed to meaningful change that helps workers and their families. It will also bolster the long-term economic base of the city. Sweet Flower is excited to be a potential partner with the city in the creation of this new economy, where employees and stakeholders in Fresno alike will be able to benefit from a new, prosperous quality of life that they deserve. We plan to offer the following compensation to Heritage by Sweet Flower employees: Additionally, tips and gratuities are a perk of the retail environment, rewarded for excellent customer service. In an effort to encourage a collaborative environment, all employees, including hourly managers, will split tips based on hours worked. Although tips and gratuities are not a legal requirement of this industry, if the customer feels reward-ed by good service, they may want to compensate the service p vider. This, on average, increases Sweet Flower store employee’s pay by approximately $ per hour or about $ per week for full-time employees. 2.1. LIVING WAGE POSITION Community Liasion Store Manager Assistant Manager Inventory Manager Inventory Clerk Sales Lead Sales Associate Delivery Driver COMPENSATION# OF EMPLOYEES 1 1 1 1 1 2 10 4 I I ueritage SWEET FLOWER "j 2. SOCIAL POLICY & LOCAL ENTERPRISE PLAN 77 2.2. Employee Benefits Briefly describe benefits provided to employees such as health care, vacation, and medical leave, to the degree they are offered as part of employment. At Sweet Flower, we are committed to our employees’ overall health and future, and as such, they are guaranteed a generous benefits package. We believe this is one of the best investments we make towards maintaining and growing our business, brand, and the quality of life and well-being of the city and residents of Fresno as a whole. In addition to ensuring employees healthy and safe working conditions, competitive pay, and opportunities for continuing education and training, Sweet Flower’s policy provides a combination of supplemental benefits to all eligible employees. In keeping with this goal, each benefit program has been carefully formulated. These policies have been developed over time and continue to be refined to keep up with changing times and needs. For example, at the onset of the COVID-19 crisis in March 2020, we provided two emergency cash stipends to all our store team members to help them cope with their needs at home during the state of emergency. Below is a brief outline of the benefits programs Sweet Flower provides employees and their families. Employee DiscountAll Sweet Flower employees are entitled to a 50% d unt off of the retail price of products at all Sweet Flower stores, with a monthly maximum of $ HolidaysNon-exempt Sweet Flower employees who work during one of the following holidays will receive time and a half of pay for hours worked:• New Year ’s Day• Memorial Day • Independence Day• Labor Day Sweet Flower stores are closed on Thanksgiving Day and Christmas Day so that all employees may spend these holidays with their families. Paid Time Off (PTO)Sweet Flower believes that our employees are the key to what makes a great company. Although work makes up a large portion of an employee’s life, we believe that a healthy work-life balance is essential to maintain quality performance and a positive work atmosphere. To support this philosophy, Sweet Flower has designed the below PTO plan. All non-exempt Sweet Flower employees are eligible for PTO accrual. PTO accrual begins after 90-days of em-ployment and is accrued based on the number of hours worked in the year, starting from the date of hire. PTO can be used after it is earned. Sweet Flower encourages employees to use available PTO time. If the available PTO time is not used by the end of a calendar year following 90 days of employment, the PTO will stop accruing once the balance reaches 40 hours. This applies to Sales Associates and other non-exempt team members, while Assistant Managers stop accruing at 80 hours. Employees will need to use some of their available PTO to begin accruing again. If employment is terminated, accrued, unused PTO will be paid out at the employee’s base rate of pay at termination. 2.2. EMPLOYEE BENEFITS ,,/ ---✓,, ueritage SWEET FLOWER "j 2. SOCIAL POLICY & LOCAL ENTERPRISE PLAN 78 Employees accrue PTO hours according to the following schedule: Tips / GratuitiesTips and gratuities are a perk of this retail environment, rewarded for excellent customer service. To encourage a collaborative environment, all employees, including hourly managers, will split tips based on hours worked. The perks listed above are not a legal requirement of this industry. Medical, Dental, & Vision BenefitsOur Corporate Human Resources Manager, Matthew Harshbarger, is in the process of developing com-prehensive medical, dental, and vision benefits packages to offer our employees. We look forward to offering these packages to our employees by early 2021. All full-time Heritage by Sweet Flower em-ployees will have the opportunity to enroll in these benefits once available. Continuing Education Benefit & Mentorship ProgramSweet Flower is proud to offer a Continuing Education Program that encourages employees to take time off their regular shifts to participate in cannabis industry-related seminars, workshops, and industry con-ventions. Sweet Flower will reimburse employees for expenses and fees associated with these courses as approved by the Human Resources Manager. Our Mentorship Program allows employees to “shad-ow” department managers, providing upward mobility within our company and the cannabis industry as a whole. Employees will be paid their regular rate for hours worked during the Mentorship Program. Please see Section 2.8.2. Continuing Education & Apprenticeships for further details. Volunteer TimeOur ownership, management, and employees volunteer time to local causes. Employees receive an an-nual allocation of PTO hours for volunteerism. Management also organizes company volunteer days for team bonding and community strengthening. Sick LeaveAll employees who have worked 90 or more days in California within a year of their employment with Sweet Flower are eligible for Sick Leave. Eligible employees will accrue one hour of sick time for every 30 hours worked with up to a maximum accrual of 24 hours or six days, whichever is greater, per calendar year. Upon completing 90 days of employment, eligible employees may begin to use paid sick time under this policy in increments of two hours, up to a maximum of 24 hours, or three days, which-ever is greater, per calendar year. Accrued, unused time under this policy will carry over each year up to a maximum accrual of 48 hours or six days, whichever is greater. 2.2. EMPLOYEE BENEFITS JOB ROLE Sales Leads Sales Associates Delivery Drivers Inventory Clerk Inventory Manager Assistant Managers ACCRUALBEGINS 90 Days & Forward 90 Days & Forward 10 80 0.038 MAX DAYSACCRUEDPER YEAR 5 MAX HOURSACCRUEDPER YEAR 40 ACCRUEDPER YEARHOUR WORKED 0.019 ~,@J ueritage SWEET FLOWER "j 2. SOCIAL POLICY & LOCAL ENTERPRISE PLAN 79BY Leave under this policy may be used in connection with the diagnosis, care, or treatment of an existing health condition for, or the preventive care of, an employee or an employee’s immediate family member. “Family mem-ber” for purposes of this policy includes spouses, registered domestic partners, children (regardless of age), parents (including step-parents and parents-in-law), grandparents, and siblings. Leave under this policy may also be used for employees who are the victims of domestic violence, sexual assault, or stalking. Leaves of AbsenceSweet Flower allows leaves of absence for the following: California CFRA / FMLA Policy - The federal Family and Medical Leave Act and the California Family Rights Act (FMLA/CFRA) provide eligible employees the opportunity to take unpaid, job-protected leave for certain spec-ified reasons. The maximum amount of leave employees may use under this policy is 12 weeks within a 12-month period. FMLA and/or CFRA leave may be taken for any of the following reasons:• To care or bond with a newborn child.• Placement of a child with the employee and/or the employee’s registered domestic partner for adoption or foster care to care or bond with the child.• To care for an immediate family member (employee’s spouse, parent, registered domestic partner, child, or reg-istered domestic partner’s child) with a serious health condition.• Because of the employee’s serious health condition that makes the employee unable to perform his or her job. Parental Leave Policy - The California New Parent Leave Act (S.B. 63) provides eligible employees the opportu-nity to take up to 12 weeks of unpaid leave to bond with a new child within one year of the child’s birth, adoption, or foster care placement. The maximum amount of leave an employee may use under this policy is 12 weeks within a 12-month period. Parental leave may be taken for any of the following reasons:• To bond with a newly born child.• To bond with a child placed with the employee for adoption or foster care. Paid Family Leave Benefits - An employee who is off work to care for a child, spouse, parent, grandparent, grandchild, sibling, parent-in-law, or registered domestic partner with a serious health condition or to bond with a new child, may be eligible to receive benefits through the California “Paid Family Leave” (PFL) program, which is administered by the Employment Development Department (EDD). Witness Leave - Sweet Flower encourages employees to appear in court for witness duty when subpoenaed to do so. An employee subpoenaed or otherwise requested to testify as a witness by the Company will receive his/her regular base pay for the entire period of witness duty. Employees will also be granted time off to appear in court as a witness when requested. Bereavement Leave - We know the death of a family member is a time when employees wish to be with their fam-ilies. If the employee is a full-time or part-time employee and loses a close relative, they will be allowed paid time off of up to two days to assist in attending to their obligations and commitments. Voting Leave - In the event an employee does not have sufficient time outside of working hours to vote in a state-wide election, the employee may take off sufficient working time to vote. An employee will be allowed a maximum of two hours of voting leave on Election Day without loss of pay. Military Leave - If employees are called into active military service or enlist in the uniformed services, they will be eligible to receive an unpaid military leave of absence. Provided the absence does not exceed applicable statuto-ry limitations, employees will retain reemployment rights and accrue seniority and benefits per applicable federal and state laws. 2.2. EMPLOYEE BENEFITS 2. SOCIAL POLICY & LOCAL ENTERPRISE PLAN 80 Bone Marrow Donation Leave - An employee who has been employed for at least 90 days may request a leave of absence for up to five business days in any one-year period to undergo a medical procedure to donate bone marrow. Organ Donation Leave - An employee who has been employed for at least 90 days may request a leave of absence for up to 30 business days in any one-year period to undergo a medical procedure to donate an organ. Time Off for Crime Victims - Employees who have been victims of serious or violent felonies, as specified under California law, or felonies relating to theft or embezzlement, may take time off work to attend judicial proceedings related to the crime. Employees also may take time off if an immediate family member has been a victim of such crimes, and the employee needs to attend judicial proceedings related to the crime. Time Off for Volunteer Firefighters, Reserve Peace Officers & Emergency Rescue Personnel - An employee who is a volunteer firefighter, reserve peace officer, or emergency rescue personnel is permitted unpaid time off, not to exceed 14 days per calendar year, for the purpose of engaging in fire, law enforcement, or emergency rescue training. If an employee requests time off under the policy, he or she must notify his or her direct supervisor imme-diately after the need for the leave becomes known. Educational Pursuits - Sweet Flower also considers leaves of absence on a case by case basis for employees look-ing to further their education or creative pursuits. Workers’ Compensation - On-the-job injuries are covered by our Workers’ Compensation Insurance Policy, which is provided at no cost to employees. If an employee is injured on the job, no matter how slight, they must report the incident immediately to their supervisor. Jury Duty - Sweet Flower realizes that it is the obligation of all U.S. citizens to serve on a jury when summoned to do so. All employees are allowed time off to perform such civic service as required by law. Employees also are expected to keep management informed of the expected length of jury duty service and to report to work for a sig-nificant portion of the day if excused by the court. Employees on jury duty leave are paid for their jury duty service in accordance with state law; however, salary employees are paid their full salary for any week in which time is missed due to jury duty if work is performed for the Sweet Flower during such week. 2.2. EMPLOYEE BENEFITS ueritage SWEET FLOWER "j 2. SOCIAL POLICY & LOCAL ENTERPRISE PLAN 81 2.3. Continuing Education & Employee Training Describe compensation to and opportunities for continuing education and employee training. OPPORTUNITIES FOR EMPLOYEE CONTINUING EDUCATIONContinuing education is vital in the cannabis industry as regulations and products continually evolve and change. Sweet Flower has built its reputation on having the most dedicated and educated team members in retail cannabis. We encourage and incentivize continuing education for our team at all levels. Sweet Flower believes ongoing ed-ucation and employee training will expand their knowledge to better serving our customers and that it is crucial to overall team bonding and culture. We are continually looking for opportunities for our team members to grow their knowledge in our emerging industry. Our commitment to offering ongoing education at all levels of employment is one of the reasons we are able to successfully promote from within our company and have earned our reputation of having one of the best-informed team in cannabis. See Section 2.8.2. for an overview of Continuing Education & Apprenticeships. Compensation to Employees for Continuing EducationAll training, whether in-store, online or off-site, is compensated at the employee’s current rate of pay. Off-site train-ing, seminars, and retreats are supplemented with travel costs (mileage/airfare) and a generous per diem for food and incidental expenses associated with travel. See Section 2.1. for an overview of Employee Compensation. EMPLOYEE TRAININGThe cannabis industry is highly regulated and complex. Having a reliable and knowledgeable team is integral to the success of any cannabis retailer. Sweet Flower has built a reputation in the cannabis industry for having incred-ibly knowledgeable, well-trained team members, able to guide customers from the curious to the well-informed connoisseur on the best products and methods to meet their needs. Sweet Flower Managers and Sales Associates are responsible for the care and guidance of our customers, including explaining the many nuances of the plant, its benefits and risks, and providing education on the products we carry. We believe the interaction between our Sales Associates and the customers is what defines the Sweet Flower experience. Our extensive training program encom-passes the best in retail and cannabis practices, promotes ongoing education, as well as a deep-dive on regulations and compliance. The Sweet Flower approach sets a new standard for cannabis retail. Prior to officially opening our doors in Fresno, we will conduct a minimum of two weeks of operational training, rehearsals, and a soft opening. Each employee will complete Sweet Flower’s Training Program within 30 days of their hire. We will work with the City of Fresno to ensure our curriculum meets their standards. Below is an overview of our training program. Sweet Flower’s Story & ValuesNew employee training begins with an overview of who we are, including our mission statement: We are a canna-bis retail boutique like no other. With deep roots in California, our mission is to help set a new standard for modern cannabis retail, bringing an experience that is inclusive, diverse, and approachable by all. New hires learn about the history of the company, an overview of all retail locations, and the structure of the leadership team. Most impor-tantly, new employees learn about Sweet Flower’s core values:Community EngagementPublic Health & Safety Trust & TransparencyInclusivity & Diversity 2.3. EMPLOYEE EDUCATION & TRAINING ueritage SWEET FLOWER "j 2. SOCIAL POLICY & LOCAL ENTERPRISE PLAN 82 Cannabis Education & Product KnowledgeExtensive cannabis knowledge is essential for all Sweet Flower employees. Successful Sales Leads and Associ-ates know the store’s inventory and speak to the different nuances, effects within each product, and strain. Product knowledge is evolving and Sales Associates consistently gain updated information on new products from their Managers and by listening for reviews from teammates and customers on products they may not use or have tried yet. Excellent product knowledge allows Sales Leads and Associates to recommend products to customers based on what their needs are. Sweet Flower’s onboarding includes cannabis education focusing on:• Strains types - Indica, Sativa, and Hybrid; including recommended uses and effects• Cannabinoids - emphasis on THC, CBD, and CBN• Endocannabinoid system• Terpenes• Consumption methods - flower, pre-rolls, concentrates, edibles, sublinguals, tinctures, and topicals• Brand partners - Canndescent, Lowell Farms, A Golden State, Heavy Hitters, Humboldt Farms, La Familia, Kiva, Dosist, Breez, Congo Club• Recommended dosages, onset times, and duration of effects• Safe consumption Employees are tested on their proficiency in cannabis and products sold at Sweet Flower and must be able to elo-quently articulate benefits, facts, and general cannabis knowledge. The Senior Buyer, Michelle Mendoza, and Store Managers conduct meetings to discuss new product inventory and educate all employees on these products. Learning from the Team - Cannabis is a unique and complicated industry; the plant’s benefits cover a wide variety of patients and customers. Luckily we have a team with extensive experience in all aspects of the cannabis industry, so utilizing one’s teammates as a resource is highly encouraged. Sweet Flower fosters a culture of education from all resources so that our customers have a consistent experience with all team members and in all of our stores. Employees are encouraged to ask teammates, vendor account representatives, the buying team about products they may not have experience with. Employees will also have access to promotional materials that our brands may pro-vide us with. Brand Seminars - Sweet Flower works directly with brands, cultivators, distributors, and manufacturers to host educational seminars about our mission, values, products, and more. In our experience of cannabis retail, this direct relationship between team members and brands enrich the employee’s training and understanding of the brands they are promoting and selling. These seminars have turned virtual in light of the COVID-19 crisis. Risks - All team members are educated on the risks associated with cannabis and the possible side effects. This in-cludes the dangers of driving while impaired, preventing and identifying substance abuse, hazards of consumption during pregnancy and lactation, delayed onsets of products, proper storage to protect children. Employee Newsletter - Sweet Flower’s leadership takes responsibility for providing its team with the latest indus-try and company news. The Human Resources Manager distributes a monthly newsletter that highlights new brands carried at Sweet Flower, promotions, marketing strategies, cannabis industry news, opportunities for further educa-tion and training, and much more. Cannabis & ComplianceA passion for cannabis is an essential piece to being a Sweet Flower employee. Like our customers, each employee has varying experience with cannabis, but a passion for cannabis feeds the customer experience and keeps the cus-tomer excited and returning to our stores. A passion for our product feeds our desire to learn more about develop-ments in the industry, new products, and product knowledge. Great Sales Associates know about the cannabis plant, highly anticipated new products, and understand that regulatory compliance keeps legal cannabis safe and available to the general public. 2.3. EMPLOYEE TRAINING ueritage SWEET FLOWER "j 2. SOCIAL POLICY & LOCAL ENTERPRISE PLAN 83 Team members receive an overview of state and local regulations from our Chief Legal and Regulatory Advisor, Yelena Katchko, and Director of Compliance, Alex Freedman. Our new hire training covers cannabis regulatory compliance and the City of Fresno’s cannabis ordinance, including:• Regulations to protect public health and safety• Cannabis license types• Track-and-trace / METRC• Taxes (state excise tax, medical vs. adult-use city taxes, and sales tax)• Medical vs. adult-use cannabis• Daily purchase limits• Customer return of cannabis goods• Consumption laws - including employee consumption• Hours of Operation - Under NO CIRCUMSTANCES can any sales of cannabis goods be made after 10:00 pm or before 6:00 am. Quality Assurance - Employees are required to understand product quality assurance and compliance. This train-ing includes understanding the following labeling and packaging requirements:• Tamper evident• Resealable if multiple uses• Cannot imitate any package used for products typically marketed to children• If edible, must be opaque • Child-resistant and the difference between initial child-resistant packaging and lifetime child-resistant packaging Additionally, Inventory Managers and Clerks are trained to understand the state’s cannabis testing requirements and follow the State Testing Requirements SOP, to ensure that each and every cannabis product on a Sweet Flower premises is accompanied by a Certificate of Analysis for regulatory compliance confirming that the product meets the State of California testing requirements. Customer Check-in Procedures - All store employees are trained on the proper customer check-in procedures, including valid identification types and how to use the Greenbits software to verify them. Employees are trained to check-in medical cannabis customers, including verification of their physician’s recommendation. Please see Sec-tion 1.6.1.i. Customer Check-in Procedures for further detail. Opening & Closing Procedures & Day-to-Day Operations - All team members receive training on the store’s Opening & Closing procedures, ensuring a clean, safe, secure, and friendly environment for both our customers and staff. Please see Section 1.5. Opening & Closing Procedures for further details. Point-of-Sale / Track-and-TraceSweet Flower uses several software systems to conduct business, including Greenbits (point-of-sale with METRC integration), I Heart Jane (inventory management and order fulfillment), PosaBit (debit card processing), and Spring Big (loyalty points program). All team members are trained to properly use and fully understand each piece of software. Greenbits - Each employee is required to participate in comprehensive software training through our point-of-sale (POS) system, Greenbits. This includes understanding the compliant reporting of cannabis products, movement, and transactions. Greenbits offers a “Greenbits University” training program, which includes:• Greenbits Budtender Certification - This is mandatory for our Sales Associates and Assistant Managers. The course ensures our team members are experts at ringing sales and staying compliant.• Greenbits Inventory Manager Certification - This is mandatory for our Inventory Clerks and Inventory Manag-er. These courses teach our team members everything they need to know about managing inventory in Green-bits and METRC. Once completed they receive their Inventory Manager certificate. 2.3. EMPLOYEE TRAINING ueritage SWEET FLOWER "j 2. SOCIAL POLICY & LOCAL ENTERPRISE PLAN 84 • Greenbits Store Manager Certification - This training is mandatory for our Store Manager. This course focuses on setting up the store with Greenbits, including account settings, cash and management settings, and reports. METRC - Management and Inventory team members are required to complete the METRC’s training classes. This ensures the team fully understands the state’s track-and-trace system, METRC, and how it integrates with our point-of-sale system, Greenbits. Hospitality & Customer ServiceSweet Flower is a cannabis brand committed to re-imagining the cannabis cus-tomer experience. Sweet Flower promises a concierge-level experience from knowledgeable team members who are approachable and well-trained to assist everyone from the cannabis-curious to the flower-fluent. We emphasize qual-ity, wellness, and a passion for curating a broad assortment of products and brands that resonate in the communities where we operate. The thought process behind being a successful team member at Sweet Flow-er is straightforward: The customer comes first and is the reason that we are here. Our primary role at Sweet Flower is to ensure that the customer feels welcome, comfortable, and has a positive experience every time they come into our stores or have an order delivered. Team members are trained to treat each customer visit as a unique interaction and a chance to connect one-on-one in an authentic human exchange. The two main tasks of successful custom-er relations are to communicate and develop relationships. Positive dialogue and communication with the customers and developing ongoing relationships are perhaps the two most important qualities to strive for in customer service. Customer Service training also focuses on engaging respectfully with all patrons—regardless of age, gender identification, race, or ableness. Our hos-pitality training ensures that each Sales Associate is knowledgeable, helpful, and consistent in providing an elevated customer experience each and every time. Sweet Flower customers should not feel rushed, overlooked, or ignored in any way. Team members are trained to diffuse customer issues when they arise, and when needed, the Manager should be notified to help resolve more complex issues. Team members are trained to treat customers who call on the phone with the same courtesy and respect as our walk-in customers. Team members are trained to ask customers questions on what brought them in, what they might be looking for, or if they would just like to browse around. If a customer chooses to browse, team members are encouraged to give them space and make sure to stay close enough that if the customer has any ques-tions on products, the team member is close enough to assist them. Good Neighbor PoliciesThe Fresno Community Liaison and Corporate Director of Community Affairs will guide employees through Sweet Flower protocols for integration into the neighborhood, including management of parking, maintenance of the facility (interior and exterior), avoiding nuisances, including loitering, noise, and how to handle complaints and issues swiftly and effectively. 2.3. EMPLOYEE TRAINING ueritage SWEET FLOWER "j 2. SOCIAL POLICY & LOCAL ENTERPRISE PLAN 85 Workplace BehaviorThe Loss Prevention Manager trains employees on protocol and regulations related to discrepancies in inventory reconciliation, theft, loss, and criminal activity. This training will include Sweet Flower’s obligation to and process for notification of the Bureau of Cannabis Control (BCC), the City Manager, and local law enforcement within 24 hours of discovery theft or loss. Additionally, Inventory Managers and Clerks will be trained on inventory control procedures, including intaking distributor’s product inventory deliveries, inventory reconciliation, and cannabis waste management. Waste Management & Odor ControlAll employees will receive an overview of Sweet Flower’s Waste Management Plan (WMP) and Odor Control Pro-cedures. Management level employees will receive in-depth training related to these operating procedures. Please see Section 3.3. Odor Mitigation through 3.7. Waste Management Plan for further details. Community ConcernsOur Fresno Community Liaison will work closely with all of our store employees to educate them on how to address and document a complaint or concern from community members. All complaints should be documented in the store’s Community Feedback Log. All feedback should be communicated to the Community Liaison imme-diately. It is their responsibility to oversee the resolution, including following up with the community member who issued the complaint or feedback. All employees are trained to deal with problems or potential problems swiftly and respectfully. Please see Section 3.1. Addressing & Responding to Complaints for further details. Cal/OSHA Cannabis TrainingThe Store Manager and at least one additional employee shall successfully complete a Cal/OSHA 30-Hour General Industry Outreach course by a training provider, authorized by an OSHA Training Institute Education Center. Our District Manager, Lauren Banuelos, is currently OSHA certified. She received her certification from the OSHA Training Institute at the University of California San Diego and will oversee this process for the Heritage by Sweet Flower Store Manager and, at minimum, one Assistant Manager. Record Retention & ManagementAll Management level employees will be trained on state and local regulations related to the storage of records, including records of sales, Certificate of Analysis (COAs), shipping manifests, delivery request receipts, contract with any other licensees, personnel records, waste destruction records, inventory documentation data, and inventory reconciliation reports. SecurityAll employees are required to complete introductory training relating to the store’s security prior to engaging in any work on the premises. Training includes, at a minimum, the following:• Operation of security equipment within the scope of role• Inspecting and monitoring security equipment within the scope of role• Emergency notifications, response, and reporting procedures• Effective patrolling of the facility• Identifying opportunities for diversion• Securing the premises and assigned work areas• Critical incidents, situational policies, and procedures• Proper method for securing cannabis and currency• Robbery Prevention Training SafetyAll store employees will be trained on the Emergency Action Plan for their store location. The Emergency Action Plan for Heritage by Sweet Flower will include procedures (including reporting procedures) for the following: 2.3. EMPLOYEE TRAINING ueritage SWEET FLOWER "j 2. SOCIAL POLICY & LOCAL ENTERPRISE PLAN 86 • Medical Emergencies• Fire Emergencies • Earthquake• Bomb Threat • Active Shooter• Robbery • Civil Unrest• Power Outage Management level employees will receive automated external defibrillators (AED) and Cardiopulmonary Resusci-tation (CPR) training. All team members will receive safety training related to:• Ladder Safety• Safe Cutting Techniques • Safe Lifting Techniques• Bloodborne Pathogen Training COVID-19 Training - Training our team on proper COVID-19 procedures is essential to maintaining the health and safety of our employees and customers. Sweet Flower employees are trained about sources of exposure to COVID-19, the hazards associated with exposure, and the appropriate workplace protocols to prevent the likeli-hood of exposure. Please see the full Safety Plan in Section 4 for in-depth information related to safety training and COVID-19. Delivery Driver Training & SafetySweet Flower Delivery Drivers are required to complete a 4-hour course of instruction and pass a written examina-tion with a passing score of 80%. The employed coursework selected by Sweet Flower is provided by the National Safety Council and covers a broad range of topics, including road readiness, distracted driving, collision avoidance, and rules of the road. Delivery Drivers are also educated on potential hazards and given safety tips such as not leav-ing the car running unattended, always being alert, and not deviating from the delivery path. On-going Training & EvaluationsAll training will be conducted upon initial assignment and retraining will be as frequently as required by Cal/OSHA standards and no less frequently than every five years. All training will have formal documentation and will be kept on file. Evaluations and/or audits of programs and procedures by management and safety committee shall be as fre-quently as required by Cal/OSHA. Our Director of Compliance, Alex Freedman, will be responsible for providing quarterly all-staff training on compliance updates, new regulations, and best practices. This may include break out sessions from experts on safe consumption, track-and-trace, customer safety, and taxation compliance. 2.3. EMPLOYEE TRAINING ueritage SWEET FLOWER "j 2. SOCIAL POLICY & LOCAL ENTERPRISE PLAN 87 2.4. SOCIAL POLICY RECRUITMENT 2.4. Social Policy Recruitment 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. We are proud to say 83% of our Corporate Leadership identifies as Black, Indigenous, and People of Color (BI-POC) and/or female, and we strive to represent that in each of our stores. Our current retail team across four stores is 85% BIPOC and/or female. Sweet Flower is proud of our diverse team and celebrates them as we firmly believe the cannabis industry should reflect and directly benefit the communities they serve. Sweet Flower also works dil-igently to actively recruit and promote veterans. Justin Jones, Sweet Flower’s Vice President of Operations, spent five years in the United States Army, including a deployment to Iraq in 2004. He is passionate about helping fellow veterans and providing assistance to those in need. He sees the cannabis industry as a unique opportunity to engage and uplift fellow veterans through dedicating resources and offering career opportunities. Sweet Flower’s commitment to operating as an inclusive employer ensures success for our brand and is a mean-ingful, powerful investment in Fresno. Our recruitment plan will institute and implement policies and practices of employing and empowering a diverse and local workforce in compliance with the City of Fresno’s Municipal Code. Our objective is to recruit and hire individuals for 50% (or a minimum of 34%) of the total annual work hours per-formed at the business who meet at least one of these criteria:• Annual family income below 80% area median income• 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 three years• Veteran• Former foster home youth who was in foster care as a minor• Unemployed• Receiving public assistance There are many ways Heritage by Sweet Flower will connect with these individuals for employment. We will reach out to the community to actively recruit through both online and in-person methods. We will host a pre-opening job fair (in-person and virtual) specifically for Fresno residents living below the median income, currently unemployed, receiving government assistance, former foster care youth, veterans, and those adversely impacted by prior can-nabis laws. We look forward to creating and offering opportunities to individuals and communities in Fresno who have been disproportionately affected by economic, social, racial, and judicial biases. In addition to recruiting locally through the resources referenced in Section 2.8.1 Local Hiring, Sweet Flower will actively connect with and encourage residents of Fresno to apply through organizations that support and assist these specific groups and individuals. We have identified the below organizations to partner with: Fresno County Veteran Service Office - The Fresno County Veteran Service Office promises to provide a vital and efficient system of services to veterans, their dependents, and their survivors. co.fresno.ca.us/departments/social-services/veterans-service-office Fresno County Veterans Services ueritage SWEET FLOWER "j 2. SOCIAL POLICY & LOCAL ENTERPRISE PLAN 88 2.4. SOCIAL POLICY RECRUITMENT Clean Slate Program – A reentry program that provides free legal services to indigent and low-income persons convicted of offenses in Fresno County and eligible for record clearance. The Clean Slate Program also connects eligible participants to services, which assist with health-care, employment training, and housing access.co.fresno.ca.us/departments/public-defender/how-to-clean-up-your-record/clean-slate-program Circles of Support and Accountability (COSA) Fresno – Circles of Support and Accountabili-ty (COSA) Fresno is a nonprofit organization committed to creating safe communities by sup-porting adults in reentry. Through mutual care, support, and accountability, they foster a culture of well-being within the community.cosafresno.org Local Conservation Corps (LCC) - LCC provides at-risk, young adults between 18–26 years of age with employment, training, and educational opportunities. However, only individuals 21 years of age or older will be permitted to apply for positions at Sweet Flower. fresnoeoc.org/lcc The American Legion, Fresno Federal Post 509, Inc. - The American Legion is committed to advocating patriotism and honor, promoting strong national security, and continued devotion to servicemembers and veterans. The organization belongs to the people it serves and the commu-nities in which it thrives.americanlegion509.org/Welcome.html WestCare California - WestCare focuses on military personnel, veterans, and their immediate family members. They assist with rent payments, bus passes, wellness vouchers, and housing vouchers. westcare.com/page/where-we-serve_CA If awarded a license, Sweet Flower will provide funding for, organize, and promote expungement clinics and outreach services and provide job opportunities for qualifying candidates. Please see Section 7.1.1 Expungement Clinics or Outreach Services for more information. We understand that a career path in a growth industry can have profound effects on individuals but is also an in-vestment in families and communities—creating long term, generational benefits and upward mobility. Additionally, Heritage by Sweet Flower is confident that 100% of our workforce will consist of bonafide Fresno residents who have established residency before submitting an employment application with Sweet Flower. This confidence comes from the overwhelming success of the local hiring initiatives implemented at all our locations. Please see Section 2.8.1 Local Hiring for further details. Ii Fresno Economic Opportunities Commission TH£ F RESNO FEDERA L AM[:~~~ 509 F AMI LY @ •~ ~ WEST(ARE ueritage SWEET FLOWER "j 2. SOCIAL POLICY & LOCAL ENTERPRISE PLAN 89 2.5. Local Management 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. All Sweet Flower locations are locally managed entities of the Sweet Flower brand. Heritage by Sweet Flower will be as well. There is a deep talent pool in Fresno, and we are excited to engage with the community to fill key management positions. Local management will help us establish our brand and help create deep community roots in Fresno. Hiring from within the community will help us attain our goal of true enrichment for all in Fresno. Man-agement positions with Sweet Flower offer a well-paying career path in an emerging industry. Heritage by Sweet Flower will fill these key management positions with bonafide Fresno residents who have lived within the City of Fresno for at least one year prior to March 2, 2020. Our goal is to develop a local management team with candidates who represent Sweet Flower’s core values of community engagement, public health and safety, trust and transparency, and inclusivity and diversity. These individuals will meet the criteria listed in the Fresno Municipal Code Section 9-3316 (b) (1), Social Equity. They will also have strong ties to the community and a history of giving back through volunteerism and community involvement. All management personnel will share Sweet Flower’s commitment to public health and safety. This attention to a diverse and committed local manage-ment team will help Fresno realize its vision for regulated cannabis to benefit all. These management positions include:• Dedicated Fresno Community Liaison• Store Manager • Inventory Manager• Assistant Store Managers In addition to the positions detailed above, Heritage by Sweet Flower will work to hire all team members locally. Our Corporate Headquarters and existing Sweet Flower retail stores are located nearby in Southern California, en-abling hands-on guidance from our owners and Corporate Leadership. This allows Sweet Flower to hire local man-agement who may not have experience in the regulated cannabis industry and give them the mentoring they need to succeed. Our best in class training and the opportunity to gain real-world experience by training at our existing stores will ensure Sweet Flower sets the bar for retail cannabis in Fresno. We are committed to fostering local talent and growing the local economy. Our CEO, Timothy Dodd, and/or Corporate Leadership will be on-site in Fresno weekly. Each Corporate Leader-ship member will visit Fresno at a minimum of once per month, with a rotating schedule of Corporate Leadership members visiting every week. Sweet Flower is a California company; thus, our focus is dedicated to our home state and its beautiful communities. We are dedicated to investing in and enriching the communities we serve. We understand and incorporate local values, priorities, and leadership at all of our locations. We recognize that each community we are honored to serve is unique. Our goal is to enrich the communities we operate in authentically and effectively. Local management, leadership, and staffing are essential to attaining this. Heritage by Sweet Flow-er will operate, as all our locations, with local management and staff. We provide immense benefits to the State of California, the cities we are located in, and the individual communities we serve. 2.5. LOCAL MANAGEMENT ueritage SWEET FLOWER "j 2. SOCIAL POLICY & LOCAL ENTERPRISE PLAN 90 2.6. Number of Employees, Titles, & Responsibilities Describe the number of employees, title/position, and their respective responsibilities. NUMBER OF EMPLOYEESSweet Flower excels as a compliant business by executing a strategic employ-ee recruitment and hiring program and by delegating clear responsibilities and roles for our team. We provide robust and ongoing training and education and hold our team accountable for their performance. Heritage by Sweet Flower will employ at least 21 individuals at the Fresno location. We plan to assess this minimum threshold within the first 90 days of operation and will hire additional store employees as necessary. All employees will be at least 21 years of age, and individuals residing in Fresno or Fresno County are preferred for all Heri-tage by Sweet Flower positions. The following descriptions of employee roles and responsibilities are designed to provide a comprehensive picture of Heri-tage by Sweet Flower’s day-to-day operations. EMPLOYEE POSITIONS & RESPONSIBILITIES Community Liaison - 1 EmployeeThe Community Liaison oversees all community and government relations for Heritage by Sweet Flower. This individual will lead our community engage-ment and education efforts. They will chair our Community & Neighborhood Advisory Committee helping to oversee and advise on the allocation of our Community Investment Fund, benefiting local nonprofits and city-sponsored events and initiatives. The Community Liaison will be available 24 hours a day to address community concerns and complaints. The Community Liai-son will be responsible for regular check-ins with the City of Fresno and all businesses and residences located within 100 feet of our Fresno location. Our Fresno Community Liaison will lead our community outreach efforts and insti-tutes an open line of communication for the community and city regarding any concerns. The Community Liaison will also attend meetings with the Fresno City Manager or their designees, and other interested parties as deemed appro-priate by the City Manager or their designees, to discuss costs, benefits, and other community issues. This position will report directly to the CEO, Timothy Dodd, and meet with him and the Corporate Director of Community Affairs weekly. Store Manager - 1 EmployeeThe Store Manager is responsible for all Heritage by Sweet Flower’s opera-tions. They will work in conjunction with the Community Liaison to ensure Sweet Flower seamlessly integrates into Fresno. The Store Manager’s respon-sibilities will include training the Assistant Managers, Inventory Manager, and Sales Leads, maintaining the Greenbits (the dispensary point of sale system that automatically integrates to California Cannabis Track-and-Trace System METRC “CCTT” or “METRC”), I Heart Jane (customer order fulfillment plat-form), and OnFleet (delivery software), and ordering merchandise based on 2.6. EMPLOYEES ueritage SWEET FLOWER "j 2. SOCIAL POLICY & LOCAL ENTERPRISE PLAN 91 demand. This individual will also oversee the training of cannabis compliance, the Odor Mitigation Plan, and the Waste Management Plan. The Store Manager will report directly to the District Manager, Lauren Banuelos. Upon their hire at Sweet Flower, the Store Manager will be required to become Occupational Safety and Health Administration (OSHA) certified with an emphasis on cannabis by completing an industry outreach course offered by an authorized training provider. Our District Manager, Lauren Banuelos, is currently OSHA certified. She re-ceived her certification from the OSHA Training Institute at the University of California San Diego and will over-see this process for the Heritage by Sweet Flower Store Manager. The Store Managers’ daily duties include:• Ensuring a safe and clean retail environment;• Ensuring excellent customer service from all team members; • Creating a weekly schedule for Assistant Managers and Sales Associates;• Checking in with opening and closing Managers each morning and evening;• Communicating with the Senior Buyer and Inventory Manager regarding selling trends throughout the store;• Supervising the daily flow of tasks for Assistant Managers and Inventory Managers;• Monitoring trends and making recommendations for maximizing goals and objectives; and• Assisting in recruiting and developing Assistant Managers. Assistant Manager - 1 EmployeeThe Assistant Manager is responsible for helping organize and run Heritage by Sweet Flower and will fill in for the Store Manager when needed. This role is highly important in ensuring the Sales Leads and Associates meet their goals of efficiency and customer satisfaction. The Assistant Manager’s responsibilities also include training Sales As-sociates, monitoring inventory, and ordering merchandise based on demand. They will also receive training focused on cannabis compliance, METRC, Greenbits, I Heart Jane, the Odor Mitigation Plan, and the Waste Management Plan. Ultimately, the duties of the Assistant Manager are to make sure Heritage by Sweet Flower operates effectively, compliantly and that we keep our customers happy. Upon hire at Sweet Flower, at least one Assistant Manager will be required to become OSHA certified by completing an industry outreach course offered by an authorized training provider. Assistant Managers’ daily duties include:• Ensuring our team provides outstanding and knowledgeable customer service by creating a friendly environ-ment; • Initiating, monitoring, and maintaining company standards for housekeeping, cleanliness, and customer service;• Maintaining an awareness of all product information, merchandise promotions, test merchandise, and advertis-ing;• Communicating with the Store Manager regarding selling trends throughout the store;• Communicating customer requests to the Store Manager;• Supervising the daily flow of tasks for Sales Associates;• Monitoring trends and making recommendations for maximizing goals and objectives;• Implementing floor moves, merchandising, and display maintenance; and• Assisting in recruiting and developing Sales Associates. Inventory Manager - 1 EmployeeThe Inventory Manager receives shipments, safely stores products, and assists with quality assurance. This position is tasked with oversight of product integrity by maintaining an accurate record of inventory, including descriptions, measurements, date and time of receipt, expiration date, name and license number of the distributor, and the price paid for the goods. Key responsibilities include scheduling distributor deliveries, acceptance of shipments, and conducting daily inventory reconciliation, which includes monitoring and reporting discrepancies in inventory. In addition, the Inventory Manager trains the team on new products offered in the absence of the Senior Buyer. The In- 2.6. EMPLOYEES ueritage SWEET FLOWER "j 2. SOCIAL POLICY & LOCAL ENTERPRISE PLAN 92 ventory Manager reports directly to the Senior Buyer, Michelle Mendoza. The Inventory Clerks report to the Inven-tory Manager. The Inventory Manager’s daily duties include:• Review of Certificates of Analysis for regulatory compliance;• Review of labeling and packaging compliance at shipment intake;• Supervision of limited-access area protocols;• Ensuring all expired product is removed from inventory and the sales floor prior to expiration;• Proper destruction of samples and any expired products;• Ensuring the limited-access Inventory Room is kept in a clean and organized manner;• Ensuring the Inventory Room remains locked and secured;• Maintaining an awareness of all product information, merchandise promotions, and advertising;• Communicating with the Store Manager regarding inventory levels;• Supervising the daily flow of tasks for the Inventory Clerks and planning the weekly work schedule; and• Recruiting and training Inventory Clerks in the METRC, I Heart Jane, and Greenbits systems. Inventory Clerk - 1 EmployeeInventory Clerks are responsible for fulfilling in-store customer ’s purchases from the secured limited-access Inven-tory Room each day. Inventory Clerks are also tasked with keeping the Inventory Room clean and organized at all times. This position assists in the daily inventory reconciliation. The Clerks will be educated on all new products, be responsible for adding empty display packaging to the Retail Floor once a new product is stocked, and remove any out-of-stock product displays from the Retail Floor. The Clerks are trained on METRC, Greenbits, and I Heart Jane systems. The Inventory Clerk reports directly to the Inventory Manager. The Inventory Clerk’s daily duties include:• Ensuring the limited-access Inventory Room is kept in a clean and organized manner; • Ensuring the Inventory Room remains locked and secured;• Alerting the Inventory Manager of low inventory levels and selling trends; and• Fulfilling orders for in-store customers and delivery customers from the secure Inventory Room. Sales Lead - 2 EmployeesThe Sales Leads will work as a liaison between the Store and Assistant Managers and Sales Associates. Sales Leads will be responsible for mentoring and assisting Heritage by Sweet Flower Sales Associates. They are trained on both the Greenbits, and I Heart Jane systems and will be able to aid Sales Associates with these applications. In addition to modeling and directing Sales Associates, the Sales Leads goal is to heighten customer satisfaction, ensure compli-ance, and provide support where needed. Sales Leads’ daily duties include:• Supporting Sales Associates with customer service, verification of ID, and customer education;• Encouraging and leading sales goals on a monthly, quarterly, and yearly basis;• Remaining knowledgeable on products offered and discuss available options;• Opening/closing POS stations;• Processing POS purchases;• Maintaining a clean safe retail environment; and• Building productive trust relationships with customers. Sales Associate - 10 EmployeesSales Associates are tasked with providing excellent customer service and fostering a safe, professional environment where all customers feel welcome and comfortable. Associates must be highly trained and knowledgeable about all cannabis products, health impacts, and responsible consumption. A core duty includes customer education about can- 2.6. EMPLOYEES ueritage SWEET FLOWER "j 2. SOCIAL POLICY & LOCAL ENTERPRISE PLAN 93 nabis, effects, risks, and benefits. Sales Associates work closely with customers to determine their needs, answer their questions, and recommend the right prod-ucts. Sales Associates should stay up-to-date with product features and maintain the store’s visual appearance with high standards. Ultimately, the duties of a Sales Associate are to achieve excellent customer service while consistently meeting the store’s sales goals. Sales Associates must also be familiar with security requirements and other compliance standards, such as customer check-in procedures, age verification, and physician’s recommendations for medical customers. They are responsible for making sure that cannabis goods are not visible from outside the premise. They shall also receive training regarding policies for customer inspection of cannabis goods and its effects on odor mitigation. Sales Associates play a key role in monitoring customer activity, facilitating the flow of patrons, and elevat-ing any nuisance or loitering issues to management or Security Personnel. Sales Associates are trained on both the Greenbits and I Heart Jane systems. They are prohibited from selling more than the daily limits as authorized by the Bureau of Cannabis Control Section 5409. Greenbits point-of-sale (POS) soft-ware includes tools and features to help team members monitor customer daily limits. Sales Associates also ensure that all cannabis goods leaving the premises are in opaque exit packaging. Sales Associates’ daily duties include:• Ensuring high levels of customer satisfaction through excellent sales ser-vice;• Verifying customers ID and physician recommendations for medical cus-tomers at Reception;• Assessing customers’ needs and providing assistance and information on product features;• Welcoming customers to the store and answering inquiries;• Following and achieving sales goals on a monthly, quarterly, and yearly basis;• Remaining knowledgeable on products offered and discuss available op-tions;• Processing POS purchases;• Maintaining a clean, safe retail environment; and• Building productive trust relationships with customers. Delivery Driver - 4 EmployeesThe primary duties of Sweet Flower Delivery Drivers are preparing incoming customer delivery orders and fulfilling a high standard of customer experience to our customers. Delivery Drivers must build productive relationships, resolve complex issues, and win customer loyalty. In the absence of delivery orders, Drivers will work as Sales Associates on the Retail Floor. Delivery Drivers monitor incoming delivery orders, verify government-issued identification through the order system, prepare delivery orders, and drive or-ders to the customer’s address. Delivery Drivers are also responsible for verify-ing the government-issued identification once again at the time of delivery and 2.6. EMPLOYEES WELLNESS ueritage SWEET FLOWER "j 2. SOCIAL POLICY & LOCAL ENTERPRISE PLAN 94 collecting payment. Drivers will receive in-depth training on compliance, cash handling, and security as it relates to their duties. Delivery Drivers’ daily duties include:• Preparation of delivery request receipts;• Serving as the face of Heritage by Sweet Flower by providing an excellent customer experience;• Preparation and packaging orders in a timely manner;• Delivering orders within the established time frame;• Product knowledge of cannabis and popular brands;• Ensuring company SOPs and all legal requirements are followed per the Bureau of Cannabis Control (BCC) and the City of Fresno;• Maintaining accurate records of deliveries; and• Keeping an organized and clean work area in the vehicle; obeying traffic laws, and operating the vehicle in a safe manner. Candidates for this position must have their driving record screened for moving violations, speeding tickets, and driving under the influence (DUI) offenses. Individuals with a DUI on record are not eligible for employment as a Delivery Driver. Candidates are not eligible if they have moving violations or accidents within the past three years. 2.6. EMPLOYEES ueritage SWEET FLOWER "j 2. SOCIAL POLICY & LOCAL ENTERPRISE PLAN 95 2.7. Labor Peace Agreement 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. Sweet Flower has signed a Labor Peace Agreement with The United Food and Commercial Workers International Union (UFCW) local 8-Golden State representing Fresno. UFCW is comprised of 1.3 million hard-working men and women in the U.S. and Canada. They are a 501(c)(5) nonprofit organization that believes in the power of ordinary people coming together to improve their lives and make a lasting difference for all working people. Sweet Flower has a long and fruitful relationship with UFCW. We currently maintain Labor Peace Agreements with UFCW Local 770 at all of our Los Angeles-based locations. Sweet Flower wholeheartedly supports workers’ right to unionize. We see UFCW as a partner in our commitment to support workers and our community as a whole. UFCW has an impressive network of partners that will undoubt-edly assist Sweet Flower in our outreach and education efforts, local hiring strategies, and overall community investment. Heritage by Sweet Flower will provide a copy of the executed Labor Peace Agreement within 30 days of its fifth employee hire to the Fresno City Manager. 2.7. LABOR PEACE AGREEMENT • FLOWER ueritage SWEET FLOWER "j 2. SOCIAL POLICY & LOCAL ENTERPRISE PLAN 96 2.7. LABOR PEACE AGREEMENT 1 Labor Peace Agreement SWEET FLOWER FRESNO, located at 3150 E. Olive Avenue, Fresno, CA 93702, ("the Company") and the United Food and Commercial Workers Union, 8-Golden State ("the Union") hereby agree to the following terms: 1. Neutrality and Non-Disparagement. The Company agrees to take a neutral approach to unionization of workers, meaning that the Company, which also includes any managers, agents, and representatives, will neither help nor hinder the Union’s organizing effort, including making any statement or taking any action that directly or indirectly indicates or implies any opposition to workers selecting the Union as their collective bargaining representative, or directly or indirectly supporting or assisting in any way any person or group who may oppose the Union. This includes the Company refraining from making negative comments or otherwise demean by word or action the Union, Union representatives, or unionization. The Union agrees to refrain from exercising its rights to picket, handbill and engage in other economic activities against the Company's facilities or operations; however, if the Company recognizes another union as the bargaining representative of any workers, the union's obligation will automatically cease to apply to those workers' facilities or operations. In addition to refraining from exercising its rights to picket, handbill, and engage in other economic activites against the Company, the Union agrees to be neutral in its communication with the Company’s employees and will not disparage the Company or paint it in a bad light to its employees or to the public. 2. Bargaining Unit: The Union will notify the Company of the facilities and/or operations for which the union seeks to invoke this agreement's unionization process and, in this notice, the Union will designate the bargaining unit. The Union is not limited in the number of times it can provide such notice and invoke this agreement's unionization process for any of the Company's non-supervisory or management employees; provided, however, that such notice and invocation of this Agreement’s unionization process will be of a freequency that will not unreasonably interfere with or hinder the Company’s day-to-day operations. 3. Access. The Company grants the Union and its Union representatives access onto the Company's premises during working hours to speak with bargaining unit employees during non-working time, including meal periods and rest breaks. The Company will cooperate with the Union in making arrangements to permit these conversations to be held in non-restricted areas where the employees will be able to speak to the Union representatives without monitoring by the Company. 4. Meeting. At the Union’s request, the Company will conduct a meeting on a mutually agreeable date(s) and time(s) with all of the bargaining unit employees. At the meeting, the Company will tell the employees that it is neutral, does not object to their talking to and supporting the Union, and will negotiate a collective bargaining agreement (CBA) with the Union if a majority of the bargaining unit employees designate the Union as their collective bargaining representative. Union representatives will attend the meeting and, after the Company has introduced them and left the meeting, the Union representatives will talk with the employees about the Union. ueritage SWEET FLOWER "j Jacques Loveall Pres id ent International Vi ce Pres id ent 2. SOCIAL POLICY & LOCAL ENTERPRISE PLAN 97 2.7. LABOR PEACE AGREEMENT 2 5. Contact information. At the Union’s request, the Company shall furnish to the Union the names, job classifications, home addresses, cell phone numbers, home phone numbers and email addresses, if known, of the bargaining unit employees (collectively, "contact information"). The Company further agrees thereafter to provide updated worker contact information, as reasonably requested by the Union, but in no event more than once every thirty (30) days. 6. Recognition. When a majority of bargaining unit employees designate the Union as their collective bargaining representative, the Company will recognize the Union as the exclusive representative of the bargaining unit, provided that the Union may assign jurisdiction and representation rights to any of its affiliates. At either party’s request, a neutral third party may confirm majority authorization. The Company and the Union will comply with all requirements necessary to obtain certification of the Union as the exclusive bargaining representative of these employees. 7. Elections. The Company waives the right under the National Labor Relations Act to file any petition with the National Labor Relations Board for any election in any bargaining unit subject to this agreement by itself or as part of a larger unit, and agrees to refrain from directly or indirectly supporting any such petition. If any election petition is filed, the Company agrees that, at the Union’s request, the Company will enter into a full consent election agreement under Section 102.62(c) of the NLRB’s Rules and Regulations under the terms the Union and the Company determine. The Company waives the right to file any unfair labor practice charge related to or based on this agreement, the Union’s demand for recognition under this agreement, the Union's election, or any other matter related thereto, and further agrees to refrain from directly or indirectly assisting with or supporting any such unfair labor practice charge. 8. Bargaining. Within 20 days from the date of recognition, the parties will begin good faith bargaining for a CBA covering the bargaining unit. If the Union and Company are unable to agree to a collective bargaining agreement within 90 days of commencement of negotiations, the parties agree that either the Company or the Union may require that all open provisions and issues be submitted to final and binding interest arbitration per the subsection titled herein “Arbitration”. The arbitrator shall be guided by the: (i) Company's size, type of business, and financial ability; and (2) the employees' ability to sustain themselves, their families and dependents on the wages, hours, and benefits they earn from the Company, and the living wage for their family size and region, as indicated in the MIT Living Wage Calculator (http://livingwage.mit.edu/). 9. Arbitration. The parties agree that final and binding arbitration will be the exclusive remedy for any alleged violations of this Agreement and any dispute or claim arising from or relating to the interpretation or application of any provision of this Agreement. Unless they promptly agree on an arbitrator, the parties will proceed to expedited arbitration using the American Arbitration Association’s rules and procedures. The arbitrator is authorized to compel the attendance of witnesses and the production of documents at the arbitration hearing, and to award appropriate monetary, injunctive and declaratory relief. The parties agree not to challenge the aribtrator’s award as the order of judment of a United States District Court, without notice. Company waives the right to challenge any aspect of this Agreement before the NLRB, any other state or federal government agency, or any court. 10. Successorship, affiliated companies and subcontractors. This agreement will be binding on the parties’ successors and assigns, including all purchasers of the Company’s assets or business, and in the event of a merger. This agreement is also binding on any and all corporations, partnerships, organizations and sole proprietorships affiliated with or related to the Company’s business activities at Company’s licensed premises. If the Company intends to subcontract any work performed by bargaining unit employees, the Company agrees to require the subcontractor, in writing, to comply with this agreement. ueritage SWEET FLOWER "j 2. SOCIAL POLICY & LOCAL ENTERPRISE PLAN 98 3 11. Severability. If any provision of this Agreement is held illegal, void or invalid under any applicable law, the parties will meet and confer to amend the provision to make it legal, valid and binding, and the remaining provisions of this Agreement will remain binding and enforceable according to their terms and the parties’ intent. 12. Term of Agreement. The term of this agreement is 2 years from the date of this agreement. The term will renew for additional 1-year terms unless and until either party gives the other written notice no sooner than 60 days and no later than 30 days prior to the expiration. 13. Confidentiality. The Company and Union agree that all terms and conditions of this agreement are confidential and proprietary between the parties and shall not be disclosed to anyone else, except as may be necessary to effectuate this agreement, as required by law or court order, or as mutually agreed upon in writing prior to disclosure. Location currently open/Date____________ Location in license review/30 from opening____________ Timothy Dodd, CEO Jacques Loveall, President For the Company (print name) For the Union (print name) Signature Signature 12/1/2020 Date Date Sweet Flower United Food & Commercial Workers Union, 8-Golden State Company/Company Name Union 1000 Culver Blvd, Ste. 1 & Ste. 2 Culver, CA 90230 2200 Professional Drive Roseville, CA 95661 Address Address 916-786-0588 Phone Phone 2.7. LABOR PEACE AGREEMENT 12/02/2020 ueritage SWEET FLOWER 2. SOCIAL POLICY & LOCAL ENTERPRISE PLAN 99 2.8. Workforce Plan Sweet Flower is excited to provide a workforce plan that invests in our em-ployees’ future, which in turn will help Fresno achieve and sustain greater hu-man, community, environmental, and economic health and prosperity. We are committed to a local hiring policy where at a minimum 30% of our employees will be bonafide Fresno residents. Our employees will be offered apprentice-ships and compensation for continuing education in the commercial cannabis field. Our employees will be paid a living wage and provided benefits. By building on local talent and giving them the educational and economic support needed to succeed, we are confident that we will make a positive impact on the entire community and infrastructure of Fresno. 2.8.1. Local Hiring 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 bonafide residents of Fresno who have not established residency after the sub- mission of an application for employment with the applicant/permittee. One of the most powerful ways Sweet Flower can have a positive and sus-tained influence on the economic vitality of Fresno’s diverse community is by making local hiring a priority. We recognize how vital locally hired employees are in the overall success of the business and brand, just as they have been in all our other locations. In order to follow through on our promise of being an inclusive employer, we will champion the concept of employing and empow-ering a diverse and local Fresno workforce. Not only does this foster a clear sense of equity and opportunity in our work culture, but it also helps strength-en our local community and local businesses. Heritage by Sweet Flower is confident that 100% of our workforce will consist of bonafide Fresno residents who have established residency before submitting an employment application with Sweet Flower. This confidence comes from the overwhelming success of the local hiring initiatives imple-mented at all our locations, as well as the proven outreach strategies outlined in Section 2.4. Social Policy Recruitment. We will work with the City of Fresno to develop verification methods such as utility bills, government-issued identification, and other acceptable proof of residence. Our local hiring commitment will honor the clear intention of Fresno’s canna-bis ordinance—to benefit Fresno as a whole by providing a living wage that is above city, county, and state medians. Sweet Flower is passionate about its policy of inclusion at every level of the business. We have seen the benefits of inclusion in our hiring practices, and we are confident that a local and diverse team is best suited to serve our clientele. We will handpick individuals, regard-less of past work experience, who show promise, interest, and dedication to learn and grow within our company. Sweet Flower will offer them training and the chance to take part in our Mentorship Program. 2.8.1. WORKFORCE PLAN - LOCAL HIRING ueritage SWEET FLOWER "j 2. SOCIAL POLICY & LOCAL ENTERPRISE PLAN 100 Sweet Flower will achieve its goal of hiring locally by reaching Fresno workers through social media channels, tra-ditional media outlets that serve the Fresno area, and hosting in-person, as well as virtual employment recruitment events. Some of these resources will include: The Fresno Bee (digital and print channels) - The primary news source for the central San Joaquin Valley. Community Alliance - An independent voice for workers and progressive groups in the Central San Joaquin Valley. Vida en el Valle (Fresno edition) - Central California’s leading bilingual newspaper. The California Advocate - Fresno’s African American Community Newspaper. Hmong American Experience (Fresno edition) - The Latest News and Stories about Hmong Americans Hmong Radio KBIF 900am - The Central Valley’s Asian Voice. Additionally, we will engage with local city and county organizations by posting job listings on LGBTQ+, women, veterans, and minority-friendly websites such as: Fresno Women’s Network - Founded in 1987 as a way for women to support each other in business, personal, and professional growth. Members are encouraged to build relationships, mentor one another, and give back to the community. PinkJobs.com - The largest online platform dedicated to connecting the LGBTQ+ community to LGBT friendly job roles from pro-equality partners. The Fresno Area Hispanic Foundation - Committed to developing strategies and policies to better serve all Span-ish and English-speaking business owners interested in the welfare of the Fresno-area Hispanic community. Sup-porting the growth and development of the community by bringing together business opportunities and assisting families from low-income households. Fresno Metro Black Chamber of Commerce (FMBCC) - This group engages, educates, and empowers the Black business community in the Fresno metropolitan area. Fresno Spectrum Center - Empowering the LGBTQ+ community through collaboration, education, mentorship, training, and other resources. Central Valley Veterans - All-volunteer, nonprofit honoring any United States Veteran with support and guidance to improve the quality of their life. Sweet Flower will also work with city agencies and community groups to promote local hiring. We are excited to bring together a diverse, local, talented cross-section of residents to help Sweet Flower set the bar for retail canna-bis in Fresno. 2.8.1. WORKFORCE PLAN - LOCAL HIRING ueritage SWEET FLOWER "j 2. SOCIAL POLICY & LOCAL ENTERPRISE PLAN 101 2.8.2. Continuing Education & Apprenticeships Commitment to offer apprenticeships and/or compensation for continuing education in the field. Continuing Education BenefitCannabis is a continually evolving industry; therefore, ongoing employee training and education are paramount to Sweet Flower’s success and compliance. We recognize that for development purposes, employees should attend training seminars, workshops, industry conventions, and join professional associations that enable them to remain abreast of best practices and network with other professionals within the cannabis industry. We will develop and offer a Continuing Education Program to all employees at Heritage by Sweet Flower. This program will allow for Sweet Flower employees to take time off of their regular shifts to participate in cannabis industry-related seminars, workshops, and industry conventions. Sweet Flower will also begin including a list of cannabis industry educational seminars, workshops, conventions, and courses in our monthly Employee Newsletter. Employees will have the opportunity to sign up for these events with our Human Resources Manager. Sweet Flower will cover the costs associated with these pre-approved educa-tional events and courses and will pay the employee their regular rate for the time they attend. Employees also have the opportunity to suggest other educational events and courses to the Human Resources Manager that they would like to attend. The employee will work with the Human Resources Manager to determine if the costs are either fully or partially reimbursable by the company and if the employee qualifies to receive their regular pay for the time they attend these educational events or courses. At Sweet Flower, we believe ongoing training and education will help our employees flourish in all aspects of their careers. As a result, Heritage by Sweet Flower is not your typical dispensary. It is a space for education and discov-ery for everybody. As proven by success in our other locations, this normalizes the cannabis retail experience and cultivates the ongoing process of destigmatizing. This ultimately brings the cannabis industry into the sunlight and establishes a brand and business that Fresno can be proud of. Mentorship ProgramWe want to do everything within our power to help our employees thrive, and this means that our responsibility to them does not end at the point of hire. We understand that not every employee immediately lands in the role that is their best fit within our company; a little experimentation and training may be necessary to place every employee in a position in which they are happy and effective. We have designed our Mentorship Program with all employees in mind, but it is especially beneficial to the employees who are less likely to have benefited from the access and privilege necessary to research and test out career paths. This philosophy and action allows upward mobility within our company and the cannabis industry as a whole. We are committed to promoting from within the company when possible. Any employee who shows aptitude and interest is encouraged to train up by one-on-one coaching and shadowing shifts at their regular pay rate at times that work for them. If an employee is interested in exploring a vastly different position within our career catalog—like a Sales Associate who is always harbored a curiosity for graphic design—we will match them with an in-house mentor or facilitate and structure a relationship with an appropriate partnering business. 2.8.2. CONTINUING EDUCATION ueritage SWEET FLOWER "j 2. SOCIAL POLICY & LOCAL ENTERPRISE PLAN 102 Sweet Flower offers a variety of meaningful advancement and training opportunities, including the option to cross-train at other Sweet Flower locations and the opportunity to advance to the corporate level. We stand behind our hires; we approach all of our non-thriving employees with the assumption that their skill set could be better tapped. If an employee is unhappy or struggling, we will have our Human Resources Manager approach them to see if they would be interested in exploring different placement through our Mentorship Program. By instituting robust ongo-ing team education and training opportunities for our employees, Sweet Flower can provide our customers a con-cierge-level experience from a knowledgeable team who are approachable and well-trained to assist everyone from the cannabis-curious to the flower-fluent. 2.8.3. Living Wage Commitment to pay a living wage to its employees. Sweet Flower is committed to paying our employees a competitive living wage, above the median, non-skilled compensation. This core company principle is about more than just financially compensating people fairly and just-ly for their work. It is a straightforward action and communication to the industry, community and employees that we value their time, service, and expertise. If we value our employees, our employees will value us. It also instills trust in the operational philosophy that working for Sweet Flower means being part of a diverse and inclusive team dedicated to a shared vision—diligently executing the values-driven mission of educating and engaging our cus-tomers and the communities we serve. We consider paying a living wage to be a necessary investment in the future of the business, brand, and most importantly, the City of Fresno, where all residents will be able to participate in the vision and reality of a flourishing, high-quality, diverse local economy. Please see Section 2.1. Living Wage for further details and specific wages for each position at Heritage by Sweet Flower. 2.8.3. LIVING WAGE ueritage SWEET FLOWER "j 2. SOCIAL POLICY & LOCAL ENTERPRISE PLAN 103 2.9. Social Equity Business Incubator Describe whether the business is willing to serve as a Social Equity Business Incubator by offering sup- port 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. Sweet Flower is committed to doing our part to make the cannabis industry more inclusive, to help right the wrongs of the unjust war on drugs, and to uplift all people in the communities we serve. We will help Fresno achieve its goal of providing meaningful opportunities for all stakeholders and creating real economic mobility by fostering an economy that is inclusive, vibrant, and sustainable. We are committed to social equity at all levels of our operations and intend to inspire, nurture, inform, and catalyze local businesses. Sweet Flower considers itself not only a brand or retail business but a community presence. We strive to develop a robust and engaged relationship with the communities we serve and with the local companies we coexist with. We are committed to taking on this vital responsibility. Sweet Flower intends on serving as a Social Equity Business Incubator. We will offer our knowledge, expertise, and resources to these critical local businesses so they will be able to grow, prosper, and deliver valuable services and products to the community. We believe that if these businesses are doing well, not only are we doing well, but the overall community will benefit. Our commitment to embracing socially equitable practices and policies within our operational procedures and with other local cannabis retailers will have a positive and lasting impact on the neighborhoods and people of Fresno. We look forward to being a meaningful community steward and a committed contributor to Fresno’s Cannabis Equity Program. Mentorship - Sweet Flower will serve as a Social Equity Business Incubator by offering our knowledge and re-sources to local cannabis social equity businesses. We will mentor selected local cannabis social equity businesses. Because we have opened and are currently operating four retail stores, we understand every step of the complicated process of running a compliant and successful cannabis business—from building out and staying on budget, main-taining compliance with state and local laws, and implementing significant neighborhood and community outreach. We will walk selected local cannabis social equity businesses through these phases and serve as trusted advisors for any questions and issues they may have. Training - Sweet Flower has developed best-in-class training for its staff, and we will welcome selected local can-nabis social equity businesses to participate in these training sessions. These specific, comprehensive trainings will include, but are not limited to:• Product & Cannabis Education• Loss Prevention • Staff & Customer Safety• Track-and-Trace Compliance • Quality Assurance Representation - Sweet Flower currently showcases products from small cannabis cultivators. This is defined as cultivators having less than one-half acre in total (total includes all state licenses the cultivator receives) as well as cultivators or manufacturers located in census tracts with income and poverty levels below state averages. We are proud to carry a range of Black, Indigenous, and People of Color (BIPOC) and female-led cannabis brands. We highlight these brands in our current stores to help promote this vital part of the industry and to educate our cus-tomers on where our products originate from. We will not only dedicate clearly defined shelf space to Fresno equity business products, we will work hand in hand with them as retail partners developing co-branded promotions, in-store events, and marketing tools to educate our customers and the community on the importance of support-ing quality local cannabis products. We understand that representation matters and plan to contribute to Fresno’s growth as a forward-looking city, creating opportunities for all residents and a shared prosperity with selected local cannabis social equity businesses. 2.9. SOCIAL EQUITY INCUBATOR ueritage SWEET FLOWER "j 3. NEIGHBORHOOD COMPATIBILITY PLAN 104 NEIGHBORHOOD COMPATIBILITY PLAN 3.1. Addressing & Responding to Complaints Sweet Flower is dedicated to seamless integration into the neighborhoods in which our stores are located and addressing any concerns in an open, collaborative, transparent, and effective way. We practice a whole community approach to neighborhood integration that has been successful at our current locations and strengthened our rela-tionships with the broader communities we serve. The plan outlined below details how we will prevent and respond to community members’ concerns and complaints at our 3150 E. Olive Avenue location in Council District 7. Meetings with the Fresno City ManagerDuring our first year of operation, Sweet Flower’s owners Timothy Dodd and Michael Thomson, the Store Manag-er, and Community Liaison, will attend regular meetings with the Fresno City Manager to discuss costs, benefits, and other community issues. They will also meet with the City Manager’s designees and other interested parties, as deemed appropriate by the City Manager. After our first year of operation, Sweet Flower’s owners, Store Manager, and Community Liaison will continue to meet with the City Manager or their designees as requested. Addressing & Respond to Complaints - Community Feedback Log Heritage by Sweet Flower will have a dedicated Community Liaison whose name, telephone number, and email ad-dress are posted clearly onsite at the retail store and on our website. We will also provide the Community Liaison’s contact information to the City of Fresno and all businesses and residences located within 100 feet of our Fresno location. We will work to identify a Community Liaison in Fresno with deep ties to the community. Our Fresno Community Liaison will lead our community outreach efforts and institute an open line of communication for the community and city regarding any concerns. Additionally, the Community Liaison will work closely with all store employees to educate them on addressing and documenting a complaint by community members who may contact the store in-person or by telephone. We have also created several communication channels to voice complaints and concerns so that any problem or potential problem can be dealt with swiftly. Our customers often use Google reviews or Instagram (@sweetflow-ershops) to contact us directly about concerns. Our Community Liaison will be available by phone and e-mail and receive all communication from Yelp, WeedMaps, Leafly, and our social media outlets in real-time. Any complaints or issues will be addressed personally within 24 hours. All complaints will be documented in the store’s Community Feedback Log. The documentation should include the community member’s name and contact information, provided they consent to releasing that information. The log will also include a thorough description of the complaint or feedback, the employee’s name receiving the communi-cation, and the next steps to resolve the issue. All feedback will be communicated to the Community Liaison imme-diately. It is their responsibility to oversee the resolution, including following up with the community member who issued the complaint or feedback if their contact information was provided. The Community Liaison will send CEO Timothy Dodd a weekly summary of all entries into the Community Feedback Log. Mr. Dodd will be contacted immediately by the Community Liaison with any issues they deem to be extremely urgent. It will be the Commu-nity Liaison’s responsibility to work with the CEO and Store Management to suggest updates to SOPs to prevent duplicate or further complaints or issues related to noise, light, odor, litter, vehicle, and pedestrian traffic. 3.1. ADDRESSING COMPLAINTS WELLNESS ueritage SWEET FLOWER "j 3. NEIGHBORHOOD COMPATIBILITY PLAN 105 Noise - Heritage by Sweet Flower will not play any loud music or host events with excessive noise. The noise level emanating from Sweet Flower should not be any higher than from any other similarly situated retail business. All doors and windows of the business will remain closed and locked for security pur-poses, preventing any noise from being heard outside the building. We will have a clearly posted Good Neighbor Policy, reminding customers to be respectful as they enter and exit. Sweet Flower staff and Security Personnel will be responsible for controlling patron conduct on the property. This includes mon-itoring the exterior of the premises and immediate action upon identifying a customer who conducts any inappropriate behavior, such as loitering and excessive noise from cars, car stereos, or voice volume. Our location is isolated from any residential properties. In the unlikely event that noise would be coming from the retail store, all surrounding businesses will have direct access to Managers on duty, Security Personnel, and our Community Liaison to report and resolve any issues immediately pertaining to noise, parking, light, or any other concerns. All issues will be dealt with swiftly and respectfully and document in the Community Feedback Log. Light - We will provide sufficient lighting for customers to enter and exit our business safely during hours of operations. Exterior lighting will be white light using LED lamps with full cutoff fixtures to limit glare and light trespass. Light poles will be no higher than 20’. Exterior lighting will be shielded or other-wise designed to avoid spill-over illumination to adjacent streets and properties. Sweet Flower will work with the Fresno Planning and Development Department and the Fresno Police Department for approval of all perimeter lighting systems, including motion sensors, for after-hours security, before opening. Broken or damaged exterior lighting will be repaired or replaced within 48 hours of being noted. If any lighting complaints arise, the Community Liaison will investigate any complaints and work swiftly to resolve any lighting issues. All issues will be documented in the Community Feedback Log. Odor - Sweet Flower is committed to having zero negative impact on our community and will make air quality control and odor abatement one of our priorities. Heritage by Sweet Flower will prevent the retail facility’s minimal odors from being detected by a person from both outside and inside the retail store. We will utilize an air filtration ventilation system, monitoring procedures, and maintenance plan to prevent any potential odor from escaping the facility. All cannabis products delivered to Heritage by Sweet Flower’s premises will be packaged, thereby mak-ing it unlikely for any cannabis products onsite to emit odor. In the event that Heritage by Sweet Flower receives an odor complaint from a member of the community, Heritage by Sweet Flower staff will follow the following procedures:1. Log the date, time, source, contact information, and description of the complaint in the Community Feed-back Log;2. Within 30 minutes of receiving the odor complaint, the Store Manager will identify the source of the odor by physically inspecting the facility for any cannabis product that may be emitting odor, including in-spection of all areas of the retail premise;3. Within 30 minutes of receiving the odor complaint, the Store Manager will physically inspect the odor control system to ensure it is functioning properly;4. If the Store Manager identifies that the odor control system is malfunctioning, the Manager will immedi-ately contact the manufacturer;5. The Store Manager will see if the issue can be addressed with the manufacturer over the phone. If the malfunction cannot be resolved over the phone, the Manager will schedule the first available appointment by the manufacturer to visit the retail facility to physically inspect the odor control system;6. If the odor control system cannot be fixed on the date of the inspection, the Store Manager will immedi-ately place an order for the first available replacement part. Should the existing system be designated as beyond repair, a new system will be ordered at once; 3.1. ADDRESSING COMPLAINTS ueritage SWEET FLOWER "j 3. NEIGHBORHOOD COMPATIBILITY PLAN 106 7. The Store Manager will communicate the complaint and resolution to Sweet Flower ’s entire ownership and leadership team via email within 2 hours of receipt of the complaint, or as soon as practicable;8. The Store Manager will discuss the source of the odor complaint or issue and resolution with the team at the next team meeting to develop and implement procedures to avoid future odor complaints. Please see Sections 3.3 - 3.6 for further details of our Odor Mitigation Plan. Litter - Heritage by Sweet Flower will continually maintain the retail premises so that it is visually attractive and not dangerous to the health, safety, and general welfare of employees, patrons, surround-ing properties, and the general public. Litter will be removed daily from the premises, including adjacent public sidewalks and the parking lot. Sweeping of sidewalks will be completed daily by the Sales Asso-ciates as part of their opening duties. Sales Associates will also be responsible for monitoring potential debris in exterior walkways throughout the day. Any complaints of litter on our premises will be taken care of immediately by store employees. Los Olivos Gardening Services will be enlisted for the weekly upkeep of our exterior landscaping. They will also be responsible for removing debris and cleaning the parking lot weekly. Maintenance and operating characteristics will be compatible with abutting properties and the surrounding neighborhood. Vehicle Traffic - Our website offers an order ahead/pick-up option, which will reduce customer conges-tion by shortening the length of time in the store and freeing up parking spot availability. We offer cus-tomer delivery as well, which will help ease parking congestion at our location. At the onset of the COVID-19 crisis, we were the first dispensary chain in Los Angeles County to request and receive temporary relief approval for curbside pickup from the Bureau of Cannabis Control (BCC) and to implement curbside pickup at our retail stores. With permission from the BCC and City of Fresno, we will continue curbside pickup as necessary to observe social distancing protocols. Heritage by Sweet Flower’s location will provide ample parking for our customers, distribution vehicles, and Delivery Driver vehicles. The premises will provide for at least 20 parking spaces. Two parking stalls will be reserved as Americans with Disabilities Act (ADA) regulation spaces. Two parking stalls near the rear of the building will be reserved—one for distributor deliveries and one for Delivery Driver vehicles. Any complaints related to vehicle traffic or parking will be addressed immediately by our Community Liaison and documented in the Community Feedback Log. Exterior surveillance cameras will be used to monitor parking and vehicle traffic on our premises. Parking lot striping, markings, and signage will be checked daily by staff to ensure our customers and employees’ safety. Pedestrian Traffic - Our Security Personnel will not allow Sweet Flower’s customers to congregate out-side the building, in the parking lot, or anywhere on the premises. We welcome all forms of traffic (car, pedestrian, and bike). In addition to our clearly posted Good Neighbor Policy, our Security Personnel will do regular walking checks of our perimeter to ensure all Sweet Flower customers respect the property as a whole. Every business nearby will have direct access to the Store Manager, Security Personnel, and the Community Liaison to remedy any immediate concerns. All complaints and concerns will be logged in the Community Feedback Log and addressed immediately. 3.1. ADDRESSING COMPLAINTS lI ueritage SWEET FLOWER "j 3. NEIGHBORHOOD COMPATIBILITY PLAN 107 3.2. Management to Avoid Becoming a Nuisance Describe how the CCB will be managed to avoid becoming a nuisance or having impacts on its neigh- bors and the surrounding community. At Sweet Flower, we focus on targeted outreach to surrounding residential neighbors and local businesses, ensuring everyone is involved and at ease in the process. We believe that the sensitive addition of cannabis retail storefronts will provide a significant economic and health, and wellness benefit for the City of Fresno. However, we also understand how crucially important it is to address the impacts and concerns that may occur from this unfamiliar business type to some neighbors and the surrounding community. We believe that mitigation of impacts starts with communication, education, and transparency. Heritage by Sweet Flower will hold regular community meetings to engage the neighborhood, reach out to neighborhood councils, local community groups, and law enforcement. We will provide real-time feedback on our overall operations and elicit insight for any changes that need to be made to be a good neighbor. Cannabis businesses can often be misun-derstood, creating discomfort from community members, which must be addressed through extensive ongoing out-reach and education. Rather than seeing this in a negative light, Sweet Flower embraces this moment as an oppor-tunity to educate the community in an engaging, respectful manner, destigmatizing the perception of the cannabis industry with each passing day. This education process takes on different forms of communication and outreach, enabling us to meaningfully reach every person in our diverse community base. Our management team’s goal is for any resident or visitor of Fresno to clearly understand our operations, and we will have several channels of direct communication to voice any concerns. Community OutreachThe first step in our community outreach plan starts before we open. We want all stakeholders (residents, business-es, community groups, police, and city representatives) to have a voice at the table as we prepare to serve Fresno. We will achieve this through direct personal outreach, not by hiring a canvassing team. Our outreach will be done by our CEO, Timothy Dodd, and Heritage by Sweet Flower’s Community Liaison. Our outreach strategy includes personally canvasing residences and businesses within 1,000 feet of our loca-tion. We will introduce Sweet Flower to the neighborhood by knocking on doors (or sending out mailers due to COVID-19) and notifying community members of the proposed project, soliciting any feedback, and answering questions about the new, highly regulated cannabis market. We will also invite them to continue the conversation by attending community meetings we will host or directly contacting us. These plans may be redirected to a virtual format providing the status of the COVID-19 crisis at the time of opening. We will proactively reach out to the surrounding Neighborhood Associations and any other appropriate community groups. Fresno has an enviable amount of active community and neighborhood improvement groups, and we will introduce Heritage by Sweet Flower by sharing our plans and eliciting feedback. The purpose of these presentations and meetings is to listen to the broader community. Heritage by Sweet Flower’s success is dependent on our posi-tive and mutually beneficial relationship with all of the community. 3.2. AVOIDING BECOMING A NUISANCE ueritage SWEET FLOWER "j 3. NEIGHBORHOOD COMPATIBILITY PLAN 108 Sweet Flower believes that mitigation of impact starts with communication, education, and transparency. To engage all Fresno stakeholders, we will hold regular community meetings to encourage feedback on our overall operations and receive insight into any changes that need to be made to be a good neighbor. We will also develop and launch multiple online engagement platforms to update specific plans and register concerns. Heritage by Sweet Flower will use these online platforms as a tool to foster transparency with the city and the community. Heritage by Sweet Flower will particularly focus its outreach and educational programs for youth organizations and educational insti-tutions that outline the risk of minor use of cannabis, responsible consumption, and identify resources available to youth-related to drugs and drug addiction. We believe trust is built over time. We continually demonstrate our dedication to being a good neighbor, including transparency, rapid responses to community concerns or complaints, and a proven track record of responsible, safe, and compliant operations. Heritage by Sweet Flower will work with the Fresno Police Department to go over our security systems and proto-cols and implement any advice for improvement. Additionally, we hope to bolster Fresno Police Department part-nerships with neighborhood groups. This includes Crime Stoppers, Bringing Broken Neighborhoods Back to Life, Neighborhood Watch, Citizens On Patrol, Citizen’s Police Academy, and the Police Chief’s Advisory Board. Heritage by Sweet Flower will provide the name, telephone number, and email address of the Community Liaison to whom notice of problems associated with the business can be provided. Heritage by Sweet Flower will also pro-vide the Community Liaison’s contact information to all businesses and residences located within 100 feet of the location. Furthermore, during the first year of operation, Heritage by Sweet Flower ’s CEO, Store Manager, and Community Liaison will attend meetings with the Fresno City Manager and other interested parties to discuss the community is-sues arising as a result of Heritage by Sweet Flower’s operation. After the first year of operation, Heritage by Sweet Flower’s CEO, Store Manager, and Community Liaison shall meet with the City Manager at any time as requested by the City Manager.. Community & Neighborhood Advisory CommitteeWe will mitigate potential impacts by forming a Community & Neighborhood Advisory Committee, including representation from residential neighbors, businesses, and community leaders. This committee will meet regularly, provide a forum for ongoing feedback from the community, promote communication, and build trust. We assemble an Advisory Committee at each of our retail locations. Current Advisory Committee members at existing locations include former elected officials, local school board members, representatives from Chambers of Commerce, long-time community activists, and stakeholders from local nonprofits. We look forward to building an Advisory Committee in Fresno to help us stay accountable to our community and make recommendations regarding the following:• Creating policies to prevent nuisances and potential neighborhood impacts;• Ongoing opportunities to solicit feedback and input from the community (e.g., events, social media);• Allocation of our Community Investment Fund;• Partnerships with new or existing local business;• Preventing youth access to cannabis through education and outreach to parents and youth organizations;• Strengthening security procedures, protocols, and training; and• Identifying and implementing priority programs in Fresno. 3.2. AVOIDING BECOMING A NUISANCE ueritage SWEET FLOWER "j 3. NEIGHBORHOOD COMPATIBILITY PLAN 109 NeighborhoodHeritage by Sweet Flower will be located at 3150 E. Olive Avenue, east of N. First Street. Fresno Community Regional Medical Center marks District 7’s southern border, and Manchester Center is at the northern border. Its western boundary runs along Blackstone Avenue, and the eastern edge circles around the Mayfair District. We are excited to be located in Councilmember Nelson Esparza’s historically diverse district, home to a large Latino, Hmong, Cambo-dian, and Laotian community. We intend to be a positive addition to local and commercial businesses in the surrounding areas by supporting neighborhood revitalization, community investment, economic development, public safety, and sustainability. While the area has its share of challenges, including higher than city average levels of poverty and unemployment, it also has a growing number of neigh-borhood resource centers to meet these challenges head-on. Sweet Flower is committed to partnering with these entities in the district to help support their programs and initiatives to increase the nearby community’s quality of life. We have identified such groups as Fresno Building Healthy Communities, CARE Fresno, and the Fresno EOC Sanctuary Transitional Shelter as potential part-ners. Based on all of the revitalization efforts happening throughout the city, we are excited to be a part of Fresno’s vision. Sweet Flower looks forward to serving as a model for economic growth in Fresno and beyond. Heritage by Sweet Flower plans to engage and work with the leadership and nearby com-munities on an ongoing basis, always looking to understand each neighbor-hood’s specific issues. As responsible business owners who deeply care about the community it operates in, Sweet Flower will not only protect what people love about Fresno but will look to enhance those qualities. This is the type of relationship we envision establishing with every neighborhood and resident of Fresno, undoubtedly creating a cleaner, safer, better place to live.. Heritage by Sweet Flower plans to engage and work with the leadership and nearby communities on an ongoing basis, always looking to understand each neighborhood’s specific issues. As responsible business owners who deeply care about the community it operates in, Sweet Flower will not only protect what people love about Fresno but will look to enhance those qualities. This is the type of relationship we envision establishing with every neighborhood and resident of Fresno, undoubtedly creating a cleaner, safer, better place to live. WebsiteBefore Heritage by Sweet Flower’s opening, we will launch a page on our website and a social media strategy to capture a wide range of feedback. Our website is designed to be an educational and outreach platform for the com-munity. We have included content on our current website designed to answer questions about our products and introduce our brand. On Heritage by Sweet Flower’s page, we will have information regarding our team, a vision for our integration into the City of Fresno, and provide multiple opportunities for the public to share their input. 3.2. AVOIDING BECOMING A NUISANCE ueritage SWEET FLOWER "j 3. NEIGHBORHOOD COMPATIBILITY PLAN 110 Operations to Avoid Becoming a NuisanceSweet Flower believes that site upkeep and maintenance, as well as an instituted thorough and complete Safety and Security Plan, will add to the positive safety impact this business will have on the nearby communities and the city at large. We will prioritize the property’s daily upkeep to ensure a clean, professional, and welcoming retail envi-ronment. We will institute daily monitoring of the property for any trash, graffiti, other debris and timely removal to facilitate a well-maintained storefront. We intend to enhance both the aesthetics of Heritage by Sweet Flower and the community by making significant capital investments in the area. Another way to maintain the storefront business’s appeal is to reduce customer congestion by facilitating a safe, quick and seamless product pick-up, which will reduce the number of customers, length of time in the store, and free up parking spot availability. The floor plan was also designed to facilitate ease of circulation and flow of customers, as to not negatively impact the neighborhood. Sweet Flower will have educational materials available, and the Sales Associates will also educate customers on responsible cannabis consumption practices to further prevent any negative impacts on the community. Heritage by Sweet Flower has developed a thorough Security Plan to prevent crime and nuisance, including com-prehensive video surveillance, Security Personnel, exterior lighting, alarms, motion sensors, etc. All employees will receive training and implement protocols to reduce the risk of disruptive, nuisance behavior and negative impacts on neighbors. This includes ensuring that customers do not loiter and immediately exiting the property upon obtain-ing cannabis. Sweet Flower staff will be responsible for controlling patron conduct on the property. This includes immediate action upon identification of a customer who is conducting any inappropriate behavior, including but not limited to loitering, consumption of cannabis, tobacco, or alcohol on-site, littering, graffiti, harassment, noise, and illegal parking. In conjunction with these stringent security protocols, Sweet Flower will look to create a sustained and robust part-nership with the Fresno Police Department. We will establish an open communication line for meaningful dialogue and feedback with both our local Central and Southeast Policing District Offices, which are bracketed to the north and south of the Heritage by Sweet Flower storefront. Heritage by Sweet Flower plans to operate as an engaged and transparent partner with other Fresno city offices and officials. We look forward to establishing a positive and productive relationship in this district with current Police Chief Andrew Hall (whoever succeeds in April 2021). We also look forward to working with Central District Captain Phil Cooley, Central District Crime Prevention Officer Renee Long, Southeast District Captain Anthony Martinez, and Neighborhood Resource and Community Service Officers from both stations. As we have seen in our other locations across California, residents in many neighborhoods are saying no to graffiti, crime, and littering by participating in neighborhood patrols. At the same time, residents are saying yes to working with the City to perform neighborhood cleanups, spearhead beautification projects, and address code compliance issues. The collaborative efforts of neighborhood councils and the City have decreased crime and graffiti, removed blight and decay, and improved the city’s appearance. Sweet Flower is excited to be a value-added partner to these efforts and ideas. Based on our track record and the above-mentioned safety, design, programs, and policies, we are confident that we will be able to mitigate any potential negative community impacts. Our greatest hope and intention, born out of a carefully considered strategic plan, is to positively impact the health, safety, and economy. Heritage by Sweet Flower will strive not just to be a business, brand, or location, but a meaningful space in which all residents can experience what it means to be a part of a supportive community. 3.2. AVOIDING BECOMING A NUISANCE ueritage SWEET FLOWER "j 3. NEIGHBORHOOD COMPATIBILITY PLAN 111 3.3. Odor Mitigation Please describe all proactive policies, procedures and/or practices the business and its employees will used to prevent odor complaints. Sweet Flower is committed to having zero negative impact on our communi-ty and will make air quality control and odor abatement one of our priorities. Heritage by Sweet Flower will prevent any possible odors from the retail facility from being detected by a person from both outside and inside the retail store. It is unlikely that our location will produce any cannabis odors, as all cannabis products are delivered in their final packaged form and inventory is not stored on the Retail Floor. As a precaution, Sweet Flower installs exhaust air filtration systems with odor control, which prevents internal odors and pollen from being emitted externally. Additionally, we install air systems that create negative air pressure between the premises’ interior and exterior so that the odors generated inside the premises are not detectable outside the premis-es. These odor control devices, in-depth employee training, and maintenance of the systems ensure an effective Odor Mitigation Plan. Please see Section 3.1. Addressing & Responding to Complaints - Odor for an overview of Sweet Flower’s policy and procedure for responding to an odor complaint, including use of the Community Feedback Log. 3.4. Potential Sources of Odor Identify potential sources of odor. Heritage by Sweet Flower will not be conducting any cultivation, processing, extraction, laboratory testing, or packaging of cannabis goods as part of the proposed project. As a result, no noxious fumes or gases will be utilized at the premises. Sweet Flower will not store cannabis products on the Retail Floor. Cannabis products are stored in the limited-access Inventory Room. All packaging on the retail floor is emptied of cannabis product and used for display purposes only. All cannabis products will be delivered to the licensed premises in their final, packaged form as required by State regulations. All packaging shall protect the product from contamination, be tamper-evident, and sealed so the contents cannot be opened without destruction of the seal, be child-resistant, and resealable if it contains more than one serving. The cannabis goods shall not leave Heritage by Sweet Flower’s premises unless placed in an opaque exit package. Based on the preceding, it is improbable that any cannabis products onsite will emit odor. Notwithstanding the foregoing, odor mitigation efforts of surrounding areas will be continually monitored as it is Sweet Flower’s goal is to prevent any negative impacts on neighboring areas. Any additional mea-sures needed to ensure the prevention of odors will be taken immediately. The only activity that may cause minor odor inside the retail facility is custom-er inspection of the product, which is allowed under limited circumstances by the Bureau of Cannabis Control (BCC) in accordance with the California Code 3.3. ODOR MITIGATION \ ueritage SWEET FLOWER "j 3. NEIGHBORHOOD COMPATIBILITY PLAN 112 of Regulations Section 5405. Heritage by Sweet Flower will have select cannabis flower products removed from their packaging and placed on display for customer inspection in a secure container. Cannabis flower is the only cannabis product available for customer inspection—topicals, tinctures, and edibles will not be removed from their packaging for display. The cannabis flower inspection containers will allow customers to visually inspect the flower more closely prior to purchase. No testing or consumption of products is permitted. The closed inspection con-tainers will be stored in the locked display cases on the Retail Floor. The containers shall not be readily accessible to customers for handling without a Sweet Flower employee’s assistance. A retail employee must remain with the customer at all times that the container is being handled and inspected by the customer. Employees allow only one container to be inspected by a customer at a time to mitigate odor and prevent theft. The cannabis goods removed from their packaging for inspection shall not be sold or consumed and shall be destroyed in accordance with Sweet Flower’s Waste Management Plan. Potential minor odors generated from display products for customer inspection will be effectively mitigated by the below-described carbon charcoal filtration and exhaust system. 3.5. Odor Control Devices & Techniques Describe odor control devices and techniques employed to ensure that odors from cannabis are not de- tectable beyond the permitted premises. Even though we do not expect our cannabis retail business to generate any cannabis odor, Sweet Flower will take careful measures and use an air filtration ventilation system, monitoring procedures, and maintenance plan to pre-vent any potential odor from escaping the facility. Sweet Flower’s existing locations use these practices to success-fully mitigate potential odor from impacting our communities. Our Studio City location has utilized these systems for years without a single odor complaint. These odor mitigation practices described below utilize the best available technology on the market for odor neutralization and comply with all applicable regulations. Heritage by Sweet Flower will install a carbon filtered ventilation system at the retail facility, which will prevent any potential odor from escaping the building. This filtration system works by pairing a charcoal exhaust system with a carbon filter. The charcoal exhaust system contains a charcoal air filter placed in-line with the exhaust fan and forces air circulating within the HVAC system through an activated carbon filter. These filters act by “scrub-bing” the air, absorbing contaminants into the activated carbon material as it passes through to be recirculated throughout the HVAC system. Activated carbon is capable of removing the smell from the air and completely neu-tralizing it. These filters will also remove other impurities from the air. All odors and pollen are eliminated prior to being exhausted from the building through the use of these high-quality filtration systems. Filters will be inspected regularly and changed as needed to ensure proper air exchange rates. Carbon charcoal filtration systems are used across multiple industries and are effective in neutralizing and mitigating odor. The systems are the best available technology on the market for odor neutralization and a cannabis industry standard. Additionally, an HVAC system will be installed to create constant negative air pressure between Heritage by Sweet Flower’s interior and exterior. Any odor generated inside is not detectable on the outside of the business. Negative air pressure is the result of the HVAC system creating a pressure differential by expelling more air from the interior than is being brought into the space. This control of interior air pressure will prevent odor from escaping the facili-ty, other than through the carbon filtration system described above. Sweet Flower will work with the Fresno Planning Department to ensure our ventilation and air purification systems are approved by the city. 3.5. ODOR CONTROL DEVICES ueritage SWEET FLOWER "j 3. NEIGHBORHOOD COMPATIBILITY PLAN 113 3.6. Odor Mitigation Training &System Maintenance Describe all proposed staff odor training and system maintenance. Store Manager - The Store Manager is responsible for the development, implementation, and maintenance of the Odor Management Plan (OMP). This includes maintaining all records relating to odor management, including sys-tem installation, maintenance, equipment malfunctions, and deviations from the plan. The Store Manager verifies the effectiveness of the system weekly by physically inspecting the system. This includes listening for the sound of the system, visually ensuring the lights are on and the system is functioning, and verifying there is no detectable odor. The Manager logs that the system has been checked weekly in the Odor Control Maintenance Log. If the Store Manager identifies that the odor control system is malfunctioning, the Manager will immediately contact the manufacturer. The Manager will see if the issue can be addressed with the manufacturer over the phone. If the malfunction cannot be resolved over the phone, the Manager will schedule the first available appointment by the manufacturer to visit the retail facility to physically inspect the odor control system. If the odor control system cannot be fixed on the inspection date, the Store Manager will immediately place an order for the first available replacement part. Should the existing system be designated as beyond repair, a new system will be ordered at once. The mal-function and resolution will be communicated to Sweet Flower’s entire owner-ship and leadership team via email. The Manager is also tasked with handling any complaints of odor from the community or city officials and maintain records of odor complaints received and response action thereto. Assistant Manager & Sales Associates - Heritage by Sweet Flower’s Assis-tant Managers and Sales Associates will receive training on the Odor Miti-gation Plan from the Store Manager. The Manager educates the team on the functionality of the carbon charcoal “scrubbing” exhaust and filtration system. They also receive an overview of how to physically inspect the system, listen for the sound of the system, visually ensure the lights are on and the system is functioning, and verifying there is no detectable odor. This will enable Assis-tant Managers and Sales Associates to update the odor control maintenance log in the absence of the Store Manager. Sweet Flower’s Assistant Managers and Sales Associates shall receive training regarding policies for customer inspection of cannabis goods as it relates to the Odor Mitigation Plan. 3.6. ODOR MITIGATION TRAINING ueritage SWEET FLOWER "j -- SWEET FL OW ER -- 3. NEIGHBORHOOD COMPATIBILITY PLAN 114 3.7. Waste Management Plan Describe the waste management plan. CANNABIS WASTEAn appropriate Waste Management Plan (WMP) ensures that Sweet Flower operates under safe conditions, not only mitigating employee and public risk but also ensuring that Sweet Flower’s operations are respectful to the Fresno community and environment. Improper cannabis waste management can impose risks such as theft/vandal-ism of trash enclosures, disposal of harmful chemicals into traditional waste bins, and danger to the safety of others from exposure to potentially hazardous byproducts. Sweet Flower is proactively taking the necessary steps to set the highest industry standard by ensuring compliance with cannabis waste disposal requirements. We look forward to working with the City of Fresno staff and departments to ensure a safe, sustainable waste management process. Sweet Flower anticipates generating only “cannabis waste,” which means non-hazardous waste that has been made unusable and unrecognizable as required by state and local laws and regulations. Expected streams of cannabis waste include failed, expired, or non-compliant cannabis products (flower, tincture, topical, edible, concentrate, vaporizer cartridges, and other cannabis-infused items in mixed packaging), as well as retired cannabis product displays and any recalled product. All cannabis waste will be detailed in the store’s digital Cannabis Waste Log by the Waste Coordinator. While quantities of cannabis waste generation are undetermined at this time, our designated cannabis waste hauler will service the Heritage by Sweet Flower facility at a minimum of once per month. Sweet Flower staff and management will actively adjust its contract with the hauler to ensure proper removal and storage capacities of all cannabis waste. Prior to disposal, all cannabis goods will be destroyed, including removing the goods from any packaging and rendering them unrecognizable and unusable. Farmers Waste ServicesSweet Flower contracts with Farmers Waste Services (FWS) to ensure proper disposal of any and all cannabis waste. FWS is a leader in cannabis compliance waste standards, and they mobilize throughout California to ac-commodate many types of cannabis businesses, including grow sites, farms, testing labs, and retailers. Our current operational licensed Sweet Flower dispensaries in Los Angeles have worked with FWS for the past year. FWS follows state guidelines for processing cannabis waste by providing education, equipment, operational procedures, guidance, and complete solutions for on-site storage, disposal, and/or transportation of cannabis waste products. FWS follows all procedures of the Bureau of Cannabis Control (BCC), Environmental Protection Agency (EPA), Department of Transportation (DOT), and California Department of Fish and Wildlife (CDFW) laws/requirements. From recordkeeping to waste removal, they are diligent with their processes. A full-service, state-approved canna-bis waste removal business, Farmers Waste Services converts the cannabis waste collected into compost and rich soil, helping preserve the environment. Waste Disposal LocationsFarmers Waste Services will supply Sweet Flower with waste drums, which are fully portable, compliant, and durable. The drums are designed for sustainable, environmentally-friendly, and easily accessible cannabis waste disposal. FWS offers 15, 35, and 55-gallon drums made out of high-density polyethylene plastic. FWS drums are an industry standard. The tighthead closure secures FWS drums for transport and includes high-density synthetic rubber gaskets for vapor lock capability. These waste drums will be stored inside the Inventory Receiving Area. The Inventory Receiving Area is a limited-access area, which will be secured and restricted to Sweet Flower, its authorized employees, and the authorized waste hauler. Different streams of cannabis waste are also disposed of in separate containers. For example, dry cannabis material is not disposed of in the same container as edible food waste. Separation of waste streams allows for more accurate documentation and more efficient processing for regulators. Waste containers are always properly labeled with the type of waste accumulated. Additionally, any cannabis and/or product unique identifiers (UIDs) are documented 3.7. WASTE MANAGEMENT PLAN ueritage SWEET FLOWER "j 3. NEIGHBORHOOD COMPATIBILITY PLAN 115 upon disposal in the digital Cannabis Waste Log. The Waste Coordinator is responsible for creating and submit-ting a monthly report of the Cannabis Waste Log. The Cannabis Waste Log consists of the weight of the cannabis waste at the collection point, date of collection, name, and location of facility processing the cannabis waste; it also includes a copy of the processing facility/transfer station weight ticket. The waste drums are only accessible by authorized personnel, the cannabis waste hauler, and any regulatory agen-cies that will need access—not the public. Under no circumstances will any cannabis products or waste be commin-gled with any refuse, recycling, or organic material collected by the City. We believe the WMP set forth outlines how Sweet Flower will meet and exceed industry waste management standards in order to provide ongoing safe, environmentally friendly cannabis waste disposal. All containers of waste entering the waste storage area will be appropriately labeled and logged into the Cannabis Waste Log as part of Sweet Flower’s track-and-trace program. Containers will be identified with the following information:• UID / Tracking Number• Waste Description (vendor name and product name)• Net Weight• Volume• Date of Origin• Date of Disposal• Notes / Reason for Disposal• Agent or Employee Responsible for Disposal Monthly Reports will be submitted to the City by the Vice President of Operations or his designee if required. Waste Disposal Security MeasuresUnder the supervision of our Vice President of Operations, Sweet Flower will designate a Waste Coordinator, which will be the Store Manager or Inventory Manager, that oversees and manages the accumulation of canna-bis waste on-site. Any cannabis waste will be gathered in the Inventory Room, a limited-access area, with a sign indicating that it is an area for accumulating cannabis waste, and placed inside the secure waste drum. Surveillance cameras will be present in this limited-access area, as well as outside the door to capture all staff accessing the area. Physical access to the receptacles will be restricted to authorized employees, Fresno City government agencies, and our permitted waste hauler, Farmers Waste Services. There will be no public access to the designated receptacles. This will be tightly monitored by Sweet Flower staff. Except for when waste is being added, all cannabis waste drums will be closed and secured. All staff will be required to document their access to the secure waste storage area in the Cannabis Waste Log. Sweet Flower’s waste storage area will be easily controlled and easily visually inspected as necessary. This main waste storage area will be easily accessible yet remain secure. The area will include ventilation, will be kept clean and free of debris at all times, and will be inspected regularly by Sweet Flower staff. Our secure waste receptacles will not be filled beyond the capacity that prevents complete closure of the lid. Our contracted waste-management partner Farmers Waste Services will pick up the waste no less than once every 30 calendar days. Methods of Rendering All Waste Unusable & UnrecognizableThe Heritage by Sweet Flower Waste Coordinator renders cannabis and cannabis products into cannabis waste when placing them into the designated waste drums, and the process is recorded on the surveillance system. All cannabis waste is rendered unusable and unrecognizable by mixing, grinding, and incorporating the cannabis waste 3.7. WASTE MANAGEMENT PLAN ueritage SWEET FLOWER "j 3. NEIGHBORHOOD COMPATIBILITY PLAN 116 with a non-consumable material or by incorporating a non-hazardous compostable material so that the resulting mixture is at least 50 percent non-cannabis waste by volume. Weighing & Holding of Cannabis to be DisposedCannabis waste materials are weighed and recorded prior to disposal/hauling with definitive markings placed upon the outside of the batch and digital reference placed within the track-and-trace system. In summary, cannabis waste is:• Weighed and recorded;• Marked with a definitive label stating “Cannabis Waste For Disposal”; and• Designated within track-and-trace software as cannabis waste. Waste RemovalFarmers Waste Services will service Heritage by Sweet Flower once a month or more often as necessary. The waste will then be transferred to a waste disposal facility by Farmers Waste Services in a manner approved by the State. FWS will process the waste based on the type of waste it is. Much of the waste FWS processes carries with it the potential to create rich composted soil. FWS never utilizes landfills for cannabis waste; they are committed to ben-efiting the environment rather than harming it. A highly desired compost is created at FWS locations and offered back to cultivators, which we view as the solution to keeping California growing quality cannabis. Farmers Waste Services follows all rules and regulations applicable to the transportation and handling of cannabis waste. The cannabis waste is tracked-and-traced to its final resting place, and a non-hazardous Waste Manifest, bill of lading, or certified weight ticket issued upon disposal. Heritage by Sweet Flower will maintain the following information for Farmers Waste Services who will collect and process the waste, as well as the Bureau of Cannabis Control and regulators upon request:• Company name and business address of the private waste hauler;• Name and phone number of the primary contact person at the company;• Documentation from the waste hauling entity that indicates the time and date of each collection of waste;• Copy of the certified weight ticket or other documentation prepared by the entity hauling waste to confirm re-ceipt of the waste at the solid waste facility. TrainingAny person handling waste is made known as to the type of waste they are handling. Workers are trained to identify non-hazardous wastes from potentially hazardous ones. It is the responsibility of the Vice President of Operations and designated Waste Coordinator to ensure that all employees are properly trained and aware of the WMP. This will be a constant, ongoing process. In addition, our Management team works with Farmers Waste Services to en-sure any new waste management “best practices” are implemented by Sweet Flower. We believe that our WMP will help both the City of Fresno and Sweet Flower to manage the resulting waste in a safe and environmentally conscious manner. Our corporate and retail staff are dedicated to ongoing training and ed-ucation to ensure our retail facility and the City of Fresno are seen as innovators in both safe and sustainable waste management practices. Non-Cannabis WasteSweet Flower values sustainability and is committed to reducing waste. Non-cannabis waste will be kept to a minimum. Please see Section 7.1.2. Environmentally Sustainable Business Model to learn more about our package recycling program and other sustainable waste management efforts. 3.7. WASTE MANAGEMENT PLAN ueritage SWEET FLOWER "j 4. SAFETY PLAN 117 SAFETY PLAN 4.1. Fire Prevention & Suppression Consultant The Safety Plan shall be prepared and/or assessed by a professional fire prevention and suppression consultant. The safety plan was prepared by Mr. John P. Stoppi Jr., FPE, CFI, who is a licensed fire protection engineer in the State of California. Mr. Stoppi is also a Certified Fire Inspector III with The Pro Board, the International Accredi-tation for Fire Service Organizations. Stoppi is the only engineer in the nation that has experience developing fire safety plans for dispensaries, fire code compliance reports for extraction facilities, and approving extraction equip-ment/systems. He is been approved through the City of Long Beach, the most stringent jurisdiction worldwide with regards to cannabis safety, to write equipment/system approvals for cannabis equipment, including butane/propane or other gaseous solvents. Having experience working with over 90 cannabis manufacturing facilities nationwide, Mr. Stoppi has completed successful dispensary safety plans in California. Additionally, he has researched and approved, as a third-party professional engineer, ten different equipment/systems related to cannabis extraction. He has personally visited dispensaries in California, Colorado, Maine, Michigan, and Pennsylvania (both medical and adult-use dispensaries) to discuss their operation, security, and safety. Mr. Stoppi holds a bachelor’s degree in mechanical engineering from Pennsylvania State University and a master’s degree in fire protection engineering from the University of Maryland. Committed to strengthening his profession-al skills, he consistently undertakes continuing education, most recently completing the Business Essentials for Engineering Professionals certificate program at Auburn University. John has been a licensed professional engineer and certified building inspector since 2008 and has amassed at least 15 Professional Development Hours (PDH) of continuing education credits per year to date in a variety of engineering, inspection, ethics, and business subjects. Mr. Stoppi possesses nearly 20 years of progressive engineering experience that includes elements of engineering management, fire protection engineering, architectural engineering, building code enforcement, and building code consulting in the public, private, and international sectors. He has delivered engineering services from all sides of the industry: as a design engineer, as a consultant, and as an Authority Having Jurisdiction (AHJ). He has held se-nior-level positions that included an independent working environment, supervision of others, and considerable ap-plications of high-level engineering judgment. He has experience practicing engineering and code enforcement as a business owner. He owns a building code enforcement agency that uses these licenses (www.saturninspect.com) and serves on ASTM Committee D37. ASTM International, formerly known as the American Society for Testing and Materials, is an international standards organization that develops and publishes voluntary consensus technical standards for a wide range of materials, products, systems, and services. Mr. Stoppi can be contacted at john@stoppieng.com. 4.1.1. General Safety Approach The basic requirements for building and fire safety were implemented per the 2019 California Building Code and the 2019 California Fire Code, referred to as the CBC and CFC, respectively. The California Building and Fire 4.1. FIRE PREVENTION & SUPPRESSION CONSULTANT ueritage SWEET FLOWER "j 4. SAFETY PLAN 118 Codes are state-mandated building construction codes that dictate the minimum building fire, life safety, and other construction requirements for new and existing buildings. They are applicable to all buildings and not just canna-bis dispensaries. The CBC and CFC consider, among other things, how a building or space will be used. With this usage in mind, the codes vary, which requirements must be applied and how they are applied. The full construction codes also consider building systems and even energy usage. The full name of all of these state-mandated codes is the California Building Standards Code, California Code of Regulations, Title 24.1 The dispensary is used primarily to sell cannabis products to the public. To this end, emptied product packaging is on public display, while inventory is stored in the back portions of the building. The primary fire hazard in a retail establishment is the fire load of the products being sold. The “fire load” of a material is its latent ability to produce a certain amount of heat when ignited. With products being laid out in various configurations, the “fire load” is moderate. In order to mitigate this potential fire hazard, the building is equipped with an automatic fire sprinkler system. The automatic fire sprinkler system will be designed as an “Ordinary Hazard, Group 2,”2 sprinkler hazard occupancy. Such a design would ensure that any potential fires are suppressed, which would ensure occupant safety during egress and first responder safety. Additionally, an automatic fire sprinkler system limits the spread of fire within the building and potentially to any adjoining or surrounding properties. Automatic sprinkler systems are essentially pipes filled with water with closed sprinkler heads attached to the end of them. This type of sprinkler system will have each individual sprinkler head open when it reaches a certain tem-perature.3 Only the sprinkler heads that reach this temperature will open and flow water. Most typically, research has shown that only one or two sprinkler heads are required to open to suppress a fire. Contrary to popular belief, all sprinkler heads do not open and flow water simultaneously. Figure 1 shows the components and layout of a sprinkler system. A “building fire alarm system” is an electronic, low voltage life safety system whose purpose is to alert the occu-pants of a fire, effect their evacuation, and alert the fire department that a fire has been reported within a specific building. The system is comprised of manual pull stations4, audio alarms, visual alarms (strobe lights), automatic sprinkler systems5, control panels, and telecommunications equipment to alert the fire department. The building fire alarm system is considered primarily as a “life safety system,” because it serves to protect the occupants primari-ly, and the secondary purpose is to dispatch the fire department. The fire department may either focus on rescuing occupants, confirming everyone has evacuated the building, and on suppressing the fire. The dispensary is not required by code to have a fire alarm system. However, one will be installed. This fire alarm system will monitor the sprinkler system. Upon sprinkler system activation, a general fire evacuation alarm will be engaged, which will instruct the occupants to exit the building. Manual pull stations will be provided at the emer-gency exits, even though they are not required because there is a sprinkler system present. A manual pull station will not be provided (it is not required) at the main entrance to prevent tampering and security potentially being compromised. The manual pull stations will have a cover installed, which sounds a local alarm at the device, if the cover is opened. This feature is to dissuade tampering of the device. 1 The full gamut of these construction codes can be found atdgs.ca.gov/BSC/Codes. Construction codes are written by Architects and Engineers and are considerably difficult in their understanding, interpretation, and appli-cation. There are some professionals who are dedicated exclusively to the understanding, interpretation, and appli-cation of building codes—often referred to as “building code consultants.”2 This is specific terminology from the sprinkler design standard. 3 155 degrees Fahrenheit4 Such manual pull stations are very common in schools, are colored red, and are labeled with text such as “Pull in Case of Emergency.” 5 The sprinkler system flow is monitored, and, if detected, alarms the fire alarm system as a fire has been detected. 4.1.1. GENERAL SAFETY APPROACH ueritage SWEET FLOWER "j 4. SAFETY PLAN 119 Full smoke detection will be installed in the building as an enhancement to fire safety, as fire sprinklers only serve as heat detectors for fire alarm purposes. Smoke detectors are similar to “smoke alarms” found in homes, except they do not sound an alarm at the smoke detector itself. Rather, the smoke detectors send a signal to the fire alarm control panel, which is the “brains” of the fire alarm system, and the control panel sends a signal to the audio alarms, visual alarms, and signal to the fire department. Notice how the smoke detector de-picted here does not have an integral speaker within it; the alarms are separate devices. The layout of the fire alarm system has been provided in the attached schematic. Carbon monoxide is a dangerous gas produced by fire—in particular, small, smoldering fires that may not be detected by smoke detectors or fire sprinklers. Carbon monoxide has the potential to effectively suffocate a victim by pre-venting oxygen from being distributed throughout the body. To protect against this type of fire, carbon monoxide detectors have been added to the fire alarm system. When carbon monoxide is detected, it will send an alarm signal to the fire alarm control panel. It is recommended that this alarm need not sound a general evacuation alarm, but alert management to the potential threat, and have the threat be investigated. For example, food being cooked may inadver-tently trigger one of these detectors. Duct smoke detectors will be installed within HVAC equipment if required by the California Mechanical Code. Duct smoke detectors are required if any HVAC equipment has supply air that exceeds 2,000 cubic feet per minute (CFM) per Section 608.1 of the 2019 California Mechanical Code. The pur-pose of duct smoke detectors are to prevent the HVAC system from spreading smoke throughout the building in case of fire. A code compliant egress scheme has been developed. Code compliant refers to the way exits, doors, emergency lighting, exit signs, and other things have been designed to meet the requirements of the CBC. Emergency exit and illumination have been designed to accommodate the facility and its egress scheme. Emergency exit signs are signs that have “Exit” written on them, and are illuminated at all times, even if there is a power failure. Emergency light-ing is lighting that switches on in the event of power failure (in addition to the exit signs). The purpose of the emergency lighting is to provide illumination for egress if there is a power outage. Tactile exit signs have been provided to meet accessible egress code provisions; all exits are accessible. Tactile exit signs are signs with raised or depressed text, have the standard symbol of accessibility on them (the pictogram of a figure in a wheelchair), and have Braille embedded on them for those with sight impairments. These features can be seen in the integrated safety diagram. General provisions for hazardous materials, including Safety Data Sheets,, medical safety and training, personal protective equipment, fire responder notification, and incident and accident reporting have been considered and are prescribed herein. Safety Data Sheets, formerly named “Material Safety Data Sheets (MSDS), are documents that list the possible hazards and properties of materials. Safety Data Sheets inform material handlers the proper way to Figure 1: Typical Automatic Fire Sprinkler System Figure 2: Cover Sheet of SDS for Common Disinfecting Bleach 4.1.1. GENERAL SAFETY APPROACH SAFETY DATA SHEET ---------------------.-c--. -- .., ___ , __ ... ____ , __ -_____ ., .. ..,,,,... ______ <711_,_ E...--® ......... ------_] ueritage SWEET FLOWER "j 4. SAFETY PLAN 120 handle the materials and what to do, in terms of medical attention, upon exposure to the material. For example, if exposed to bleach, one would flush their eyes for 15 minutes, and seek medical attention if their eyes still showed signs of damage. Figure 2 shows the first page of a Safety Data Sheet for bleach. Safety Data Sheets are typically 10 pages long. NFPA 704 placards are not required to be placed at the building’s entrance or into the rooms that contain these chemicals, because they are not considered generally hazardous. NFPA 704 placards are the diamond shaped figures with four boxes embedded in them with numbers and special symbols. No gases or chemicals are to be used at this facility for testing or other purposes. The only potentially hazardous gases are those manifesting from the accidental combustion of materials.. 4.2. Accident & Incident Reporting Procedures Describe accident and incident reporting procedures. All onsite injuries should be reported promptly to the Store Manager or Assistant Manager so that arrangements can be made for medical and/or first-aid treatment. In the case of a serious incident or injury, first responders will be notified immediately, followed then by Sweet Flower Management. Sweet Flower corporate management and owners will be notified of any minor incident or injury in the Daily Manager Report. Additionally, any potential incidents should be reported promptly so hazardous equipment or conditions can be repaired, and the incident can be investigated in a timely manner. Per Occupational Safety and Health Administration (OSHA) and Cal/OSHA requirements, Heritage by Sweet Flower will report:• All work-related fatalities;• All work-related in-patient hospitalizations of one or more employees;• All work-related amputations; and• All work-related losses of an eye. Hospitalizations, amputations, and losses of an eye shall be within 24 hours of discovery. Fatalities should be re-ported within 8 hours. Employers will report to OSHA by telephone (800-321-6742) or online:osha.gov/pls/ser/serform.html Figure 3: OSHA Reporting Requirements Flowchart 4.2. ACCIDENT & INCIDENT REPORTING PROCEDURES Worker is injured HOW DO I REPORT? Was it fatal? Report to OSHA within 8 hours 1. Call 1-800-321-OSHA (6742) or NO Was the worker admitted to a hospital? Report to OSHA within 24 hours NO Was there an amputation? YES 2. Call your nearest area office during normal business hours or 3. Report online at: www.osha.gov/report_online ueritage SWEET FLOWER "j NO Did someone lose an eye? YES NO 4. SAFETY PLAN 121 he Management Office. Prospective employees must demonstrate an under-standing of the proper response to medical emergencies, as well as reporting of incidents. Sweet Flower shall ensure that all personnel receives an annual refresher training to cover the items listed above, within 12 months of the pre-vious training completion date. See Section 4.5. Procedures & Training for Fire & Medical Emergencies of this Safety Plan for additional details. 4.3. Evacuation Routes Describe evacuation routes. Egress Two exits have been provided for the building. Normal access from the retail section of the building to the back of house business operations is inhibited. Retail occupants can egress through the front door around a different door they entered the retail space from, or through the exit access door in the retail area that leads to the business area (this door may be secured but must be available for egress in a fire emergency). Full exit signage from the retail area to the two exits from the retail area have been provided and can be seen in the integrated safety diagram. The back of house business area occupants may exit through the retail front door through the secured door between retail and business or through the exit in the product receiving area. Exit access and exit separation distance have been met per CBC Section 1007.1.1, Exception 2. Exit separation distance is how far the exits are from each other. The exits need to be separated by a certain distance to ensure that a fire does not block more than one exit, and the occupants can safely choose and exit through another exit. The building is fully sprinklered, so exits must be separated by at least 1/3 of the diagonal of the area from which they are egressing. If the building were not sprinklered, this distance would have to be greater at 1/2 the diagonal of the area from which they are egressing. These distances, both required and provided, have been illustrated for the retail area and for the entire building in the integrated safety diagram. Emergency egress lighting throughout the building and at the exit discharge (outside) is proposed per the integrated safety diagram. Above each exit door, on the outside, there is a lighting fixture that illuminates the area just outside the exit to provide safety for egress if there is a power failure. These fixtures will provide adequate illumination, in the event of a power failure, for occu-pants to exit the building. Emergency lights are not to be confused with illuminated exit signs. Illuminat-ed exit signs may also contain emergency lights, but an illuminated exit sign does not always have this feature. Figures 4, 5, and 6 depict emergency light-ing, an illuminated exit sign with integral emergency lighting, and an illumi-nated exit sign, respectively. Figure 4: EmergencyLighting Fixture Figure 5: Illuminated ExitSign with IntegralEmergency Lighting Figure 6: Illuminated ExitSign without IntegralEmergency Lighting 4.3. EVACUATION ROUTES ueritage SWEET FLOWER "j 4. SAFETY PLAN 122 4.4. Location of Fire Extinguishers & Other Fire Suppression Equipment Location of fire extinguishers and other fire suppression equipment. Fire ExtinguishersMulti-purpose dry chemical fire extinguishers, 2A:10:BC, have been located throughout the building. Class A, B, and C fire extinguishers are capable of suppressing normal combustibles such as paper, liquid fires such as cook-ing oil, and can safely suppress fires that are electrified or are near electrical equipment. The sizing and spacing of the fire extinguishers was based on Table 906.3(1) of the CBC, ordinary hazard occupancy. The maximum travel distances to fire extinguishers are less than 75 feet. In other words, an occu-pant must travel 75 feet or less to access a fire extinguisher. The placement of fire extinguishers is shown on the fire and life safety diagram in the following locations:• Screening Lobby• Two within the Retail Floor• Inventory Room• Inventory Receiving Area• BreakroomThese fire extinguishers are similar to the small fire extinguishers that are used in homes and other, low hazard commercial buildings. Fire extinguishers will either be mounted within recessed cabinets or placed on a bracket secured to the wall. Fire Suppression An approved automatic fire sprinkler system designed to Ordinary Hazard Group 2 will be installed in the dispensary. The hazard classification is ade-quate to protect the hazard. During a fire event, it is anticipated that only one or two fire sprinklers will be needed to suppress the hazard. The fire sprinkler system is supplementary and is not required by the CBC. The location of the control valves, risers, waterflow switches, fire department connection outside, outside alarm bell, sprinkler heads, and piping will be developed when the fire sprinkler system is designed and detailed drawings are submitted for a fire system building permit. 4.5. Procedures & Training for Fire & Medical Emergencies Fire & Medical TrainingAs much as it is Sweet Flower’s responsibility to provide a safe work envi-ronment for everyone, each employee plays a critical role in the success of the safety program. Employees are asked to accept this important responsibility and commit to working in the safest manner possible to ensure their own indi-vidual health and wellness for the future. Employees are encouraged to com-municate freely about safety concerns and offer suggestions to improve safety conditions without the fear of reprisal. 4.4. FIRE EXTINGUISHERS & SUPPRESSION EQUIPMENT ueritage SWEET FLOWER "j 4. SAFETY PLAN 123 Under the Occupational Safety and Health Act (OSH Act), it is the employer’s responsibility to provide employees with a workplace free of recognized hazards that may cause illness or serious physical harm and to comply with standards, rules, and regulations. Heritage by Sweet Flower will lead by using a variety of techniques to demon-strate the company’s commitment to workplace safety and health. As part of the employee training regimen, employees are given instructions for responding to a medical emergency. Employees are made aware of the placement of all automated external defibrillators, fire extinguishers, med-kits, eyewash stations, and panic buttons, and shown where emergency egress notifications are displayed. Staff will undergo fire drills and evacuation training consistent with the requirements of the California Fire Code. Muster points, or emergency assembly points (EAP), will be identified during training. The location will be a safe distance from the building and clear of additional hazards. Staff will be trained in assisting employees and custom-ers will disabilities to public ways and muster points. This will also be the location of headcounts of patrons and staff will occur. Key staff and additional accountability measures will be part of the fire drill. The staff will undergo disaster training per National Fire Protection Association (NFPA) 1600, Standard on Conti-nuity, Emergency, and Crisis Management. This is an interactive program that provides training, tools, and hands-on experience related to properly handling emergency situations. The standard provides an in-depth explanation of safety laws, risk assessment, business impact analysis, loss prevention, risk mitigation, emergency procedures, business continuity strategies, crisis communications, and best practices for management and staff. NFPA 1600 focuses on seven areas, as:1. Program Management, which is the way the entire program is implemented and controlled2. Planning3. Implementation 4. Execution5. Training and Education6. Exercises and Tests7. Program Maintenance and Improvement Developing and implementing a Continuity, Emergency, and Crisis Management Program is an iterative process that undergoes continuous monitoring, management, and improvement. The requirements within this standard may coincide with the evacuation drills mentioned earlier, as required by the California Fire Code. In the event of con-flicting requirements, the California Fire Code governs, because it is required by law while NFPA 1600 is supple-mentary. Store Managers and Assistant Managers are expected to:• Attend safety meetings;• Set an example by following safety rules and regulations;• Allow employees access to tools and equipment necessary to do a job safely, including personal protective equipment (PPE) and Safety Data Sheets (SDS);• Provide employees with training on specific safety issues including the fire/emergency alarm system;• Receive automated external defibrillators (AED) and Cardiopulmonary Resuscitation (CPR) training;• Conduct regular inspections of the Retail Floor and back-of-house area; and• Follow up after safety incidents with thorough accident investigations, correct problems, and provide post-acci-dent employee training. Sweet Flower management will be fully trained on the proper usage and maintenance of the AEDs. Two AEDs will be installed. One will be on the Retail Floor and the other will be in the back-of-house area. These devices will be used to help those experiencing sudden cardiac arrest. They are an easy-to-use, medical instrument that can ana-lyze the heart’s rhythm and, if necessary, deliver defibrillation (electric shock), to assist in re-establish an effective rhythm of the heart. If any customer or staff member shows signs of atrial fibrillation, the AED will be utilized until first responders arrive on the scene. Emergency responders will be notified as soon as possible. 4.5. PROCEDURES & TRAINING FOR EMERGENCIES ueritage SWEET FLOWER "j 4. SAFETY PLAN 124 Sweet Flower management will also be trained and certified in CPR as a condi-tion of their employment. CPR is an emergency lifesaving procedure performed when the heart stops beating. Initiating CPR immediately can double or triple the chances of survival after cardiac arrest, according to the American Heart Association. Any person who is unconscious, without detectable signs of respi-ration or a pulse, will have CPR conducted on them until first responders arrive at the facility. Emergency responders will be notified as soon as possible. At the onset of the COVID-19 crisis, we began requiring store employees to observe social distancing practices, and to wear PPE masks and gloves at all times to prevent the spread of the virus. We have also increased our disinfec-tion and sanitation protocol to include additional cleaning in common areas and on shared electronic equipment (tablets, touch screens, keyboards, remote controls) as well as other frequently touched surfaces. Fire Emergency ProceduresIn the event of a fire, a Manager or any available staff member should call 911 or notify the local fire department immediately. The local fire department num-ber is posted at key points in the store (including Retail Floor and Breakroom) and listed in the Employee Handbook. The Manager should treat the fire only if it is small and not spreading to other areas. Every staff member is trained on how to properly use the fire extinguisher. Extinguishers are kept in working order and maintained regularly. Any available employee must alert building occupants (staff and guests) of the fire. Upon being notified about the fire emergency, occupants must:• Leave the building using the designated escape routes;• Assemble in the designated external rally point; and• Remain outside until the competent authority (Designated Official or des-ignee) announces that it is safe to re-enter. The Store Manager must:• Disconnect utilities and equipment unless doing so jeopardizes his/her safety;• Coordinate an orderly evacuation of personnel;• Perform an accurate headcount of personnel reported to the designated area;• Provide the Fire Department personnel with the necessary information about the facility; and• Ensure that all employees and store occupants have evacuated the premises. Medical Emergency ProceduresIn the event of a medical emergency, a Manager or any available staff member is expected to call 911 or direct dial numbers of emergency response teams, in-cluding the police department, paramedics, or ambulance. These numbers will be posted at key points in the store (including Retail Floor and Breakroom) and listed in the Employee Handbook. The staff member calling for emergency services will provide information about the nature of the emergency and the location including address and building details. 4.5. PROCEDURES & TRAINING FOR EMERGENCIES ueritage SWEET FLOWER "j 4. SAFETY PLAN 125 In an emergency situation, employees should remain calm and assess the situation, first identifying any risks for the responding employee and secondly to assess the nature and degree of the medical injury. If the situation does appear safe, they should not attempt to get the victim; they should leave immediately and call for help. If the situation does appear safe, the employee should check the victim and determine if they are conscious, breathing, and have a pulse. If the medical emergency is of a critical nature, responding employees should attempt to stabilize the injured person as best they are able, and then contact emergency services via 911. This includes stopping any bleeding with firm pressure on the wounds (avoiding contact with blood or other bodily fluids) and clearing the air passages using the Heimlich Maneuver in case of choking. If it is of a non-critical nature, the responding employee should assist the injured individual by providing a med-kit, eyewash, hydration, bandages, or physical assistance as needed. Em-ployees should provide care for victims if able to do so, or wait with the victim until first responders arrive. Sweet Flower shall ensure that all personnel receives an annual refresher training to cover the items listed above, within 12 months of the previous training completion date. Other Emergency ProceduresSweet Flower assembles an Emergency Action Plan for each of our retail locations. In addition to the fire and med-ical emergency reporting and evacuation procedures outlined above, the Emergency Action Plan for Heritage by Sweet Flower will also include procedures for the following:• Earthquake• Bomb Threat • Active Shooter• Robbery • Civil Unrest• Power Outage • COVID-19 Guidelines There will be coordination between the fire alarm system and the security system to ensure that the fire alarm sys-tem cannot be used to conduct and coordinate a robbery, shooting, or civil unrest. 4.5. PROCEDURES & TRAINING FOR EMERGENCIES ueritage SWEET FLOWER "j 4. SAFETY PLAN 127 4.6 COVID-19 Precautions & Training According to the Center for Disease Control (CDC), coronavirus, or COVID-19, mainly spreads through close person-to-person contact (within about 6 feet). When an infected person coughs or sneezes, they expel respira-tory droplets which can land in the mouths or noses of people who are near-by or be inhaled into the lungs. COVID-19 can also spread through surface contact. At the onset of the COVID-19 crisis, Sweet Flower began requiring store employees to practice social distancing and wear personal protective equipment (PPE) including masks and gloves at all times to prevent the spread of the virus. We have also increased our disinfection and sanitation proto-col to include additional cleaning in common areas and on shared electronic equipment (tablets, touch screens, keyboards, remote controls) as well as other frequently touched surfaces. Sweet Flower takes COVID-19 seriously and we have been closely monitoring, and following, CDC and Cal/OSHA guidelines related to safe operations during this time. All customers, vendors, and security personnel will also be required to wear masks inside the premises at all times and follow social distancing guidelines. COVID-19 TrainingEducation is an important part of Sweet Flower’s culture. Training our staff on proper COVID-19 procedures is essential to remaining safe during this time. Sweet Flower employees are well informed on COVID-19 safety and sanita-tion protocol, social distancing guidelines, how to prevent it from spreading, and which underlying health conditions may make individuals more suscep-tible to contracting the virus. They are encouraged to self-screen at home, including temperature and/or symptom checks using CDC guidelines and to seek medical attention if their symptoms become severe. Employees who are sick or have been in contact with someone diagnosed with COVID-19 are instructed to stay home and self-isolate. Additionally, Sweet Flower impresses upon staff the importance of frequent handwashing with soap and water. This includes scrubbing with soap for 20 seconds or using hand sanitizer with at least 60% ethanol (preferred) or 70% isopropanol. In-Store Safety PrecautionsSweet Flower has employed the following protocol to help reduce the spread of COVID-19 in our stores:• Employees must always wear a mask and gloves while working; masks must not be shared and should be washed or discarded after each shift• Employees should wash hands for at least 20 seconds after touching sur-faces to reduce the risk of the virus remaining on their skin• If unable to wash hands, employees should use hand sanitizer (at least 60% alcohol) and avoid touching eyes, mouth, and face with unwashed hands• Employees should self-screen prior to reporting to work, including tem-perature and/or symptom checks using CDC guidelines; employees will be screened for respiratory symptoms and have their body temperature taken upon arriving for their shift• Employees should not report to work sick under any circumstance; there are no negative consequences for not coming into work while sick 4.6. COVID-19 • FLOWER ueritage SWEET FLOWER "j 4. SAFETY PLAN 128 • If within the past 14 days an employee has had contact with someone who has been diagnosed with COVID-19 and is considered potentially infectious, they should refrain from reporting to work• Employees should limit the number of customers allowed in stores as decided by management, and in accor-dance with CDC and Cal/OSHA guidelines• Maintain and encourage social distancing, both for Sweet Flower employees and customers• Customers without masks will not be permitted into the store; if a guest does not have one, Sweet Flower will provide proper PPE• Hand sanitizer should be offered to all guests upon entry and available throughout the store Increased Disinfection ProceduresIn order to provide a safe environment for Sweet Flower staff and guests, the following cleaning procedures have been put in place. Store Managers are responsible to ensure:• Thorough cleaning in high traffic areas, including the Main Entry/Screening Area, Exit Vestibule, and other areas of ingress and egress (stairways, stairwells, handrails, and controls)• Frequent disinfection of commonly used surfaces, including scanners, telephones, hand-held devices, point-of-sale (POS) systems, counters, door handles, shelving, PIN pads, customer assistance call buttons, handwashing facilities, etc• Main Entry/Screening Area and Exit Vestibule and Retail Floor are equipped with proper sanitation products, including hand sanitizer and sanitizing wipes• Personal hand sanitizers are available to all Sales Associates at the Check-Out Counter DeliveryDelivery has proven an essential tool in limiting the number of customers in the store and promoting social distanc-ing during the COVID-19. Sweet Flower has established its own reliable and effective delivery program at all its locations. This ensures our standards and procedures are followed from processing the order through delivery and serves to limit the amount of contact each order has before reaching our most vulnerable customers. Delivery Driv-ers are provided with masks, gloves, hand sanitizer, and sanitizing wipes to ensure cleanliness and safety during each customer delivery. Delivery Drivers must sanitize all tablets and card readers between each delivery transac-tion. Additional information regarding our delivery procedures can be found in 1.6.1.vi. Delivery. Returning to Work After a COVID-19 DiagnosisPer Cal/OSHA, an employee may return to work after a COVID-19 diagnosis only if 10 days have passed since symptoms first appeared, their symptoms have improved, and they have had no fevers (without the use of fever-re-ducing medications) for the last 72 hours. An employee without symptoms who was diagnosed with COVID-19 can return to work only if 10 days have passed since the date of the first positive COVID-19 test. 4.6. COVID-19 ueritage SWEET FLOWER "j 129 5.0. SECURITY PLAN INTRODUCTION ueritage SWEET FLOWER "j 6. LOCATION 148 LOCATION 6.1. Location Include a thorough description of the proposed location, including but not limited to the overall property, building, and floor plan. Heritage by Sweet Flower will set the standard for what it means to be a cannabis dispensary in the City of Fresno. At our 3150 E. Olive Avenue loca-tion in Central Fresno, Heritage by Sweet Flower will be able to achieve what we have already accomplished at our other licensed locations across Califor-nia—serving a diverse, continually growing demographic. Heritage by Sweet Flower provides its customers high-quality cannabis products at accessible price points, in the safest, legal, and most convenient way. Our stores prove to have a positive, healthy economic and social impact by reinvesting into the area. Sweet Flower is also dedicated to honoring our retail stores’ communities by partnering with local businesses, community members, and organizations. These partnerships will ultimately earn Heritage by Sweet Flower it is standing as a responsible, productive, and supportive member of the Fresno family—adding to its impressive legacy as one of California’s great cities. Sweet Flow-er will make a significant capital investment in this specific retail location and the surrounding environment, which we have done with each of our licensed retail stores. Sweet Flower does not just consider this a necessary business investment. We see this as a committed investment into the community to op-erate as a true partner with the nearby businesses that already exist and thrive nearby. Sweet Flower will not merely be opening its doors in Fresno; it will be laying down roots in the community and helping to revitalize this part of the city. With population and housing booming, and the need for equitable access to cannabis products growing exponentially, Sweet Flower does not take this location for granted. We recognize that this is a valuable opportunity to serve both the established communities and newer developments and be active par-ticipants in this unique neighborhood’s revitalization and economic growth. NEIGHBORHOODHeritage by Sweet Flower will be located at 3150 E. Olive Avenue, east of N. First Street. Fresno Community Regional Medical Center marks District 7’s southern border, and Manchester Center is at the northern border. Its western boundary runs along Blackstone Avenue, and the eastern edge circles around the Mayfair District. We are excited to be located in Councilmember Nelson Esparza’s historically diverse district, home to a large Latino, Hmong, Cambo-dian, and Laotian community. We intend to be a positive addition to local and commercial businesses in the surrounding areas by supporting neighborhood revitalization, community investment, economic development, public safety, and sustainability. While the area has its share of challenges, including higher than city average levels of poverty and unemployment, it also has a growing number of neigh-borhood resource centers to meet these challenges head-on. Sweet Flower is committed to partnering with these entities in the district to help support their programs and initiatives to increase the nearby community’s quality of life. We 6.1. LOCATION ueritage SWEET FLOWER "j 6. LOCATION 149 have identified such groups as Fresno Building Healthy Communities, CARE Fresno, and the Fresno EOC Sanc-tuary Transitional Shelter as potential partners. Based on all of the revitalization efforts happening throughout the city, we are excited to be a part of Fresno’s vision. Sweet Flower looks forward to serving as a model for economic growth in Fresno and beyond. Heritage by Sweet Flower plans to engage and work with the leadership and nearby communities on an ongoing basis, always looking to understand each neighborhood’s specific issues. As responsi-ble business owners who deeply care about the community it operates in, Sweet Flower will not only protect what people love about Fresno but will look to enhance those qualities. This is the type of relationship we envision estab-lishing with every neighborhood and resident of Fresno, undoubtedly creating a cleaner, safer, better place to live. Choosing the location of a new Sweet Flower is a decision we do not take lightly. We have carefully vetted and chosen all of our locations and selected our Fresno location for brand viability and consumer accessibility. We fully understand that property choice not only impacts our own business but the local businesses and community around it. We intend to operate as a good business neighbor and partner. By establishing this type of dynamic right at the start, we set a precedent for how we will interact and integrate with the other adjacent businesses, ensuring our community’s prosperity and safety. PROPERTYThe location at 3150 E. Olive Avenue contains a freestanding building on a 17,550 square foot lot. It is close to small, local businesses and a lower-income residential neighborhood with a population exceeding 70,000. The property has been vacant for several years and was most recently occupied by a convenience store and laundromat. The original building at 3150 E. Olive Avenue was built in 1966 and is roughly 4,000 square feet. Sweet Flower will expand the building’s footprint by approximately 1,700 square feet, making it a total of 5,700 square feet, and complete an extensive renovation. We will make a substantial investment to create a storefront that will serve the diverse customer base of this community and give customers safe, convenient, and equitable access to cannabis products. Pursuant to the ordinance, which states that a location “shall be no closer than eight hundred (800) feet from any property boundary”, Heritage by Sweet Flower is located over 800 feet away from any schools, youth centers, and daycares. The location is also ideally positioned in a transit-friendly area near freeways and public transportation. This will afford Sweet Flower the real opportunity to fulfill its intentions of serving the community and making a positive social, health, and economic impact on Fresno’s constituents and visitors. It will positively influence the vibrant, diverse, and progressive brand of Fresno, California—and serve as a testament to our belief that we are building something meaningful in Fresno, for Fresno. Another vital component to the safety of the nearby communities is clear signage with a curated design aesthetic. We want our customers to feel comfortable in an inviting environment, and we want their first impression of the brand to be one that exceeds expectations. Just as our brand is designed to stand out in the marketplace, so too our name and logo were created to emanate a sense of independence from the old and negative associations people might have to cannabis in the retail space. The Heritage by Sweet Flower name is deliberately not a specific callout to cannabis. The logo mark, the poppy (Official State Flower of California), is designed to communicate a clean, sophisticated, and approachable tone. We specifically chose the poppy flower because of its connection to Califor-nia. We see the opportunity to establish Heritage by Sweet Flower in Fresno as a privilege and an honor. We are excited to operate as a value-added, best-in-class brand that promotes a prosperous, innovative, and healthy future for all its citizens. We will work with the City of Fresno on all necessary approvals for signage. Any building identification signage shall conform to the requirements of Chapter 15, Article 26 of the Code, including, but not limited to seeking the is-suance of a city sign permit. No signs placed on the Heritage by Sweet Flower premises will obstruct any entrance, exit, or window. The Sweet Flower business identification signage shall not contain any advertisements or services for the products offered. No advertising will be visible from the exterior of the premises. Any signage will not be directly illuminated internally or externally. 6.1. LOCATION ueritage SWEET FLOWER "j 6. LOCATION 150 Parking & Driveway LocationsHeritage by Sweet Flower’s location will provide ample parking for our cus-tomers, distribution vehicles, and Delivery Driver vehicles. The premises will provide for at least 20 parking spaces. Two parking stalls will be reserved as Americans with Disabilities Act (ADA) regulation spaces. Two parking stalls near the rear of the building will be reserved—one for distributor deliveries and one for Delivery Driver vehicles. The single parking lot driveway entrance will be located off of E. Olive Avenue. Auxiliary BuildingsThere are no other buildings on the parcel at 3150 E. Olive Avenue. BUILDING & FLOOR PLANThe proposed Heritage by Sweet Flower building will be approximately 5,700 square feet after renovation and an extension. The floor plan is nearly divided into half—50% of the space will serve customers, and 50% of the space is reserved for back-of-house operations. Front-of-HouseThe front-of-house half of Heritage by Sweet Flower houses the Screening Lobby with a “buzz in” entry system, Reception Office, Retail Floor, and Exit Vestibule. Customers access the front-of-house areas with the exception of the staff Reception Office and the area behind the Check-Out Counter. Entrance, Reception Office, & Screening Lobby - Customers enter Heri-tage by Sweet Flower through the front door located on the east side of the building, nearest to the parking lot. The front of the building features large glass windows to reveal the Screening Lobby, where patrons check-in. The front entry door remains locked. Persons approaching the building who can be identified by surveillance cameras will be granted entry by the employee in the Reception Office by way of an electronic switch controlling the exterior door. Security will also monitor the site access via video surveillance. The Reception Office is a limited-access area and one of the two surveillance viewing areas. The Reception Office is approximately 225 square feet. While the traditional approach to dispensary screening would place a human guard at the door and/or a defenseless worker at an accessible workstation in a lobby, Sweet Flower recognizes that these strategies are inherently dangerous, that these strategies bait conflicts, and that these strategies increase the risk of a security incident in comparison to the adopted design herein. Perception and reaction time are critical in terms of Security Personnel or an employee’s ability to respond to a security incident. Strategic placement of pan-ic alarms are not helpful if staff is placed in positions that render them suscepti-ble to ambush and which strip them of the requisite perception and reaction time a person would reasonably need to activate an alarm. The use of locking doors to keep offenders out of premises is meaningless if a human employee equipped with access credentials is placed outside those doors. Doing so promotes the viability of a hostage incident and is a weak approach to premises security. 6.1. LOCATION ueritage SWEET FLOWER "j 6. LOCATION 151 The design adopted by Sweet Flower prohibits persons entering the premises from having physical access to any employees until after the person entering has remitted photo identification. Customers shall have access granted to enter into the approximately 348 square foot Screening Lobby. Upon entry, a patron will not have immediate physical access to staff. Staff will be situated behind a protective barrier, and a document pass through is used by patrons to present their government-issued identification (ID) and physician’s recommendation, if applicable. Once ID has been electronically verified and/or the patient’s physician recommen-dation confirmed, the employee working in the Reception Office will grant the patron access to the Retail Floor by way of a switch controlling the maglock on the retail entrance door. Exit Vestibule - To prevent exiting customers from granting access to those in the Screening Lobby access to the Retail Floor, a separate door redundant exit path is provided for. No access to the Exit Vestibule from the Screening Lobby is possible without a management credentialed key/fob or receptionist override. In the event that a person in the Screening Lobby were to enter the Exit Vestibule as another patron was departing, the one-way doors in the vestibule will prevent the patron from continuing to the Retail Floor, allowing only for retreat back into the Screen-ing Lobby. Every individual must be buzzed-in from the Screening Lobby to the Retail Floor. The door from the Exit Vestibule leads back into the Screening Lobby, where customers will exit the building through the same main doorway where they entered the building. No visible cannabis activities will take place in the Screening Lobby, Reception Office, or Exit Vestibule, other than customers leaving with their purchased products in opaque exit packages. Retail Floor | Approximately 2,241 Square Feet - Heritage by Sweet Flower’s interior will have frosted glass windows separating the Retail Floor from the Screening Lobby and Reception Office. The frosted glass prevents any cannabis products from being visible from the exterior of the store. A portion of the window will be non-frost-ed to allow the Security Personnel in the Reception Office to maintain natural surveillance over the Retail Floor in addition to electronic surveillance. The Retail Floor will feature a customer education area equipped with digital displays where customers can consult with staff to get the best and most informed recommendations on products and treatments to suit their specific needs. Products are displayed in custom wood wall shelves and glass display cases throughout the Retail Floor. These displays allow all products to be easily viewed and browsed by customers while allowing staff to monitor without any visual barriers. All cannabis packaging on the Retail Floor is for display purposes only, with the exception of customer inspection containers containing cannabis flower, which is in locked, alarmed display cases that are supervised by Sales Associates on the Retail Floor. All cannabis inventory is stored in the secured limited-access Inventory Room, which is not accessible to customers, or in locked cabinets behind the Check-Out Counter. The Retail Floor is segregated into patron and staff-only areas, separated by a secure Check-Out Counter / dis-play case with four point-of-sale (POS) terminals. The Check-Out Counter is large in scale and height, with the exception of one ADA point-of-sale space, which will deter patrons from leaning over the counter, reaching for items in the staff-only area, and will provide enhanced perception and reaction time to staff in the event that any person were to attempt to leap over the counter to perform a theft or robbery. Each POS terminal is equipped with a 360-degree overhead surveillance camera and a robbery/panic alarm. Each point-of-sale will maintain only that amount of currency required to make change. All excess amounts will be immediately deposited into a drop safe. The Retail Floor will maintain a minimum stock of cannabis products (for the daily demand) in locked cabinets behind the point-of-sale counter. As customers request to purchase goods, the Inventory Manager will provide stock from the limited-access Inventory Room (Secure Product Storage) to the Retail Floor by way of a pass-through Inventory Window (see premise diagram), reducing the internal exposure of cannabis goods by eliminating the 6.1. LOCATION ueritage SWEET FLOWER "j 6. LOCATION 152 need to move product through other rooms of the premises, and by keeping the location of the Inventory Room and the methods of cannabis movement within the premises a mystery to all persons other than those employees with a business need to know. All cannabis daily product inventory remains behind the Check-Out Counter. Back-of-House The back-of-house half of Heritage by Sweet Flower is a limited-access area. This half of the floor plan contains the Inventory Room (Secure Product Storage Vault), Management Office, Inventory Receiving Area, Breakroom, and Restroom for employees. Inventory Room (Secure Product Storage Vault) | Approximately 602 Square Feet - The Inventory Room stores cannabis products and is connected to the Retail Floor by way of a locking pass-through Inventory Window. The Inventory Manager and Inventory Clerks fulfill in-store and delivery customer orders from this room. This secure product storage area may only be accessed by the Store Manager, Inventory Manager, and Inventory Clerks with the use of a key/fob. Management Office | Approximately 357 Square Feet - The Management Office stores the currency safe and a drop safe, which is installed in the wall separating the Retail Floor to the Management Office. The Management Office is a limited-access area and one of the two surveillance viewing areas, which may be accessed only by the Management or their assignees as needed. Assignees may include state or local law enforcement agencies, licensed private patrol operators, governing bodies’ employees, and authorized service personnel or contractors. The en-trance to this office is locked whenever the office is not in use and accessible by key or electronic credentials. Employee Breakroom & Employee Restroom | Approximately 757 Square Feet - The break area features a kitchenette, small dining area, couch, lockers for the staff’s personal items, and Employee Restroom. This area is restricted to staff. Restrooms will remain locked when not in use and under the control of management. There will be no cannabis activities in the Employee Breakroom or Employee Restroom. Inventory Receiving Area (Vendor Entrance) | Approximately 430 Square Feet - Inventory deliveries from cannabis distributors take place in this area. The area provides for the ability to quickly move delivered products into a secure area while preventing the need for third-party distributors to enter any limited-access area of the premises. The secure cannabis waste receptacles are also stored within this room. Please see Section 3.7. Waste Management Plan for further details. 6.1. LOCATION ueritage SWEET FLOWER "j 6. LOCATION 153 3150 E. OLIVE AVENUE MAP 6.1. LOCATION E Floradora Ave z s:: Q) -6· 0 II) Q) !a ft The Word Y Community Church A-1 Auto Repair 4j> >aint Vebster O School Y choo l 9 Aolmnnt /l.\lo z )> ::, <C i:: II) !a J D Home Renta ls 4j> ueritage SWEET FLOWER "j z 0 "' n J Q) a. !a E Floradora Ave Sinclair~ E Lamona Ave B & K Asian Kitchen f E Hedges Ave Golden Bowl ~ Hmong Market T f sushiyaki z "Tl ;;;· ~ !!l !a • 3150 Ea : Olive Avenue el :!1 Vi e nti a ne M arket T f z ,, :::;· (/) - E Clay Ave ~ E Tyler Ave !a z ttl 0 ::, C. !a z ttl g C. !/2 Romain Park z ,, ~-Bond St Market 9, -~ EThomasAve Flower Cafe f Go glee Adrian's z [ ::, c.. !a Fresno Hock Shoppe ~ t 2 C: 0 ::, C !!, 6. LOCATION 154 6.2. Photos The application shall include at least one (1) photograph of the front (street side) of the building or street view of the vacant parcel. 6.2. PHOTOS 3150 E. OLIVE AVENUE (view from E. Olive Avenue) RENDERING OF HERITAGE BY SWEET FLOWER EXTERIOR uerI a{le SWEET FLOWER 6. LOCATION 155 6.2. PHOTOS RENDERING OF HERITAGE BY SWEET FLOWER INTERIOR 3150 E. OLIVE AVENUE CURRENTLY ueritag; <; e SWEET FLOWER 6. LOCATION 156 6.3. PREMISES DIAGRAM 6.3. - 6.3.1. Premises Site Diagram Premises (Site) Diagram for each proposed location. In addition to diagrams submitted for other sec- tions of the CCB Application, applicants are expected to submit a premise/site diagram that focuses on the overall property, building. This diagram should show the overall parcel and adjoining or neighboring buildings that may be affected by the commercial cannabis business. A Premise (Site) Diagram must be accurate, dimensioned and to-scale (minimum scale of ¼”). The dia- gram shall provide a detailed description of all available/shared parking spaces, driveway locations, and auxiliary buildings on the parcel.(Blueprints and engineering site plans are not required at this point of the application process. Security features are not required for this section.). Please see two next pages. ueritage SWEET FLOWER "j 7. COMMUNITY BENEFITS & INVESTMENT PLAN 159BY COMMUNITY BENEFITS &INVESTMENT PLAN 7.1. Social Responsibility Plan The CCB Application should describe the social responsibility plan. This should include all benefits the CCB has provided or plans to provide to the local community, for example by directly aiding, participating in, or funding the work of local nonprofits, community-based organizations, civic organizations, or social services organizations. Benefits may be in the form of volunteer services, monetary donations, financial support of City-sponsored activities or organizations, in-kind donations to the City or other charitable organizations and/or any other economic incentives to the City. Sweet Flower’s business model and philosophy are built on a significant, tangi-ble, and effective commitment to community involvement and investment. We have a demonstrated, proven history of giving back and making substantial con-tributions to the communities we serve—directly donating over $150,000 to the communities in which our current stores are located in just two and a half years. Community engagement is a core value of our brand, founders, and workforce. Within the cannabis industry, Sweet Flower has set the bar for community in-vestment and forward-thinking. Our business is built on the guiding principles of community engagement, public health and safety, trust and transparency, inclusivity, and diversity. Community investment is in Sweet Flower’s DNA. From our leadership team to our commitment to sustainability, Sweet Flower strives to positively impact the communities we serve. Our demonstrated in-vestment in the communities we serve has resulted in over $150,000 in charita-ble and city donations since we were founded two years ago. We have provided this support to a diverse group of organizations, essential to us as a company and to the individual communities we operate within. This in-cludes L.A. GOAL, which aids adults with developmental disabilities, increas-ing their independence and employability through educational, vocational, and recreational programs. Sweet Flower also works with Upward Bound House. This organization works to empower homeless parents and their children and aids them in obtaining housing stability, building healthy relationships, and enjoying emotional and financial well-being. Sweet Flower donated $10,000 to Upward Bound House in 2020 to support their critical mission of helping to re-duce the number of homeless families and children who are hungry and living on the streets of Los Angeles. We have provided grants to support the Culver City School District’s music and performing arts programs through the Culver City Education Foundation and contributed to the YMCA and The Black Co-operative Investment Fund, among other charitable organizations. Our staff has engaged hands-on by volunteering in the communities we serve, participating in neighborhood clean up programs and beautification projects, and sponsoring a #HashtagLunchbag event resulting in over 2,000 bagged lunches distributed to families in need. 7.1. SOCIAL RESPONSIBILITY PLAN + SHA N, or YOG,4 ueritage SWEET FLOWER 7. COMMUNITY BENEFITS & INVESTMENT PLAN 160BY Our commitment to hands-on community service starts from the top. Sweet Flower ’s leadership team leads by example, donating their time, energy, and resources to philanthropic organizations and nonprofits. As the CEO and Founder of Sweet Flower, Timothy Dodd has a proven track record of integrating Sweet Flower stores into the fabric of the communities they serve. He is a board member for the Culver City Chamber of Commerce where our Corporate Headquarters is located. In January of 2020, he received the Chamber ’s President’s Award to recognize contributions to the city and Sweet Flower’s contributions to local nonprofits. Mr. Dodd is also a proud board mem-ber of the Black Corporate Investment Fund (BCIF). BCIF is a nonprofit whose mission is to create social change for the Black community through the primary strategy of building assets and wealth, including providing micro-loans to promote economic empowerment. Justin Jones, Sweet Flower’s Vice President of Operations, is a West Point graduate who spent five years in the United States Army, including a deployment to Iraq in 2004. He is an active volunteer with organizations that help fellow veterans and is passionate about assisting those in need. He sees the cannabis industry as a unique oppor-tunity to engage and uplift fellow veterans through dedicating resources and offering career opportunities to this community. Michelle Mendoza, Senior Buyer, is dedicated to ensuring Sweet Flower carries several brands owned by Black, In-digenous, and People of Color (BIPOC) and LGBTQ+ individuals. She believes firmly that representation matters and is a board member of the Cannabis for Black Lives organization. She is doing her part to diversify the cannabis industry, which has long been lacking in this area. Sarah Dale, Director of Community Affairs, has designed and secured grants for several nonprofits, including an Annenberg Foundation grant for PATH (People Assisting The Homeless). She co-founded the Echo Park chapter of Laundry Love, a national neighborhood movement that partners with local laundromats to wash the clothes and bedding of low-income or no-income families and individuals. With our leadership team as the model, our social responsibility plan for Fresno is city-specific. Through hands-on volunteerism and funding the vital work of local nonprofits, it will directly aid community-based, civic, and social service organizations currently supporting the Fresno community. We adhere to a community-first philoso-phy, ensuring a safe, healthy, and accessible experience for residents. With this commitment, we will invest in the local community. We will do this by providing sustained and inclusive benefits in the form of volunteer services, monetary donations, financial support of city-sponsored activities and organizations, in-kind donations to the city and other charitable organizations, and other economic incentives to the city—all of which are highlighted in this section. Community Investment FundEvery Sweet Flower location has a dedicated Community Investment Fund (CIF). The CIF is 2% of each location’s profits allocated and distributed to local nonprofits, community sponsored events, and city-sponsored initiatives. Sweet Flower knows that each community we operate in is unique with its own needs and priorities. Individual CIFs allow us t in what matters most to each community. Sweet Flower will make an initial contribution to the fund of before we open our doors in Fresno to help kickstart this program as regulated cannabis is introduced to t Additionally, of Heritage by Sweet Flower’s CIF, 25% will go directly to the Fresno Commu-nity Reinvestment Fund annually. See section 7.3. Contributions to the Fresno Community Reinvestment Fund for further details. Our CIF allows us to support a variety of local organizations doing valuable work in Fresno. We are excited to bring our hands-on approach to supporting these nonprofits and to finding other groups to partner within the com-munity. A key component of effective hyperlocal community engagement is listening and responding to the com-munity’s needs. Sweet Flower will assemble a Community & Neighborhood Advisory Committee composed of community stakeholders, representatives from the City of Fresno, nonprofits we serve, and community leaders to 7.1. SOCIAL RESPONSIBILITY PLAN ueritage SWEET FLOWER "j 7. COMMUNITY BENEFITS & INVESTMENT PLAN 161BY hold us accountable and help us allocate funds and resources where they are needed most. This has proven to be immensely effective at our current loca-tions. Community & Neighborhood Advisory CommitteeSweet Flower assembles a Community & Neighborhood Advisory Committee at each of our retail locations to enhance community commission, involvement with nonprofits, and local projects and events, supported through our CIF. Current Advisory Committee members at existing locations include former elected officials, local school board members, representatives from Chambers of Commerce, longtime community activists, and stakeholders from local non-profits. We look forward to building an Advisory Committee in Fresno to help us stay accountable to our community and make recommendations regarding the following: • Creating policies to prevent nuisances and potential neighborhood impacts;• Ongoing opportunities to solicit feedback and input from the community (e.g., events, social media);• Allocation of CIF (Community Investment Fund; 2% of profits);• Partnerships with new or existing local business;• Preventing youth access to cannabis through education and outreach to parents and youth organizations;• Identifying ways in which Sweet Flower can be a more environmentally sustainable business;• Allocation of funding for and organization of expungement clinics and outreach services;• Strengthening security procedures, protocols, and training; and• Identifying and implementing priority programs in Fresno. Community engagement and giving back are part of our core company ethos. This philosophy serves as a guiding force for how we operate. Sweet Flower is proud to have contributed to the success of the cannabis industry as a com-munity partner, proving that our industry can make positive impacts. It has also proven to enrich the communities that we operate within. Sweet Flower plans to integrate seamlessly into the Fresno community, benefitting all, which is how we define success. We are excited at the prospect of being a flagship business in Fresno that will serve the community, its residents, and visitors. We hope to contribute to Fresno’s vision and future as a wonderful community to work and live in. Fresno’s landmark cannabis ordinance made clear Fresno’s top priority is well being and opportunity for all its stakeholders. Sweet Flower is confident we can contribute significantly to this effort as a dedicated local business whose own priorities, goals, and values align with the city. Monetary & In-Kind DonationsHeritage by Sweet Flower has identified local nonprofits, programs, and or-ganizations that we intend to support financially and with hands-on volunteer hours. We will rely on the Neighborhood & Community Advisory Commit-tee to provide recommendations regarding allocating funds to programs or projects that will benefit Fresno’s constituents. While many organizations are doing excellent and essential work in Fresno, we intend to support the com- 7.1. SOCIAL RESPONSIBILITY PLAN ueritage SWEET FLOWER "j 7. COMMUNITY BENEFITS & INVESTMENT PLAN 162BY munity-based, civic, social services organizations, programs, and events that enrich and uplift the city. Some of the organizations and programs we intend to support are listed below. Local NonprofitsWe create meaningful engagement and partnerships with local community nonprofits and community groups. Sweet Flower has identified several local organizations, activities, and projects that we intend on supporting in Fresno. We plan to support these organizations through monetary donations and hands-on volunteer work by our Fresno team members. While we consider this list of organizations our starting point, Sweet Flower’s investment will not be limited to only these specific causes. As we lay down roots in Fresno, guided by our Community Ad-visory Committee, l disburse donations from our Community Investment Fund quarterly. We anticipate this fund will grow to annually by our third year of operation. We will also support these organizations through funds at our corpo el. We will continue to research and reach out to local nonprofit and city organizations. We will partner with and support these organizations to achieve an inclusive, prosperous, and long-term quality of life for the diverse Fresno communities. CARE FresnoCARE Fresno was started by the Fresno Police Department in collaboration with church and faith-based leaders. Their goal is to address crime and poverty at its root in Fresno’s most con-centrated areas of poverty.carefresno.org Central Valley Veterans Supporting those who have served is vital to Sweet Flower as our Vice President of Operations, Justin Jones is a veteran and is a dedicated volunteer in this community. Central Valley Veterans is an all-volunteer nonprofit with a mission to honor any United States Veteran with support and guidance to improve life quality. centralvalleyveterans.org Black Leaders Organizing Change (BLOC)BLOC’s mission is to strengthen the African American professional community within the Cen-tral Valley through mentorship, philanthropy, relationship building, and education.centralvalleycf.org/bloc-fresno-2 LGBT Pink Panthers Movement of FresnoThis group protects and defends the rights of all LGBTQ+ individuals, women, and children of same-sex households to prevent bullying, discrimination, and harassment.facebook.com/TheLgbtPinkPanthersMovementFresnoCaChapter Boys and Girls Club Fresno CountyWe will also provide financial support to Boys and Girls Club Fresno County to aid in their pro-grams centered around leadership development, education and career development, healthy life skills, arts, sports, fitness, and recreation.bgcfresno.org 7.1. SOCIAL RESPONSIBILITY PLAN C A R E FRESNO ToHonoranyUSVeteran withSupponandGuid.nce tolmprovetheQualityofthelrUle ~ BOYS & GIRLS CLUBS ueritage SWEET FLOWER "j 7. COMMUNITY BENEFITS & INVESTMENT PLAN 163BY Volunteer ServicesVolunteerism is a cornerstone of Sweet Flower and is an essential step in providing our local team an opportunity to give back to the community in which they live and work. Heritage by Sweet Flower will encourage and incentivize regular employee participation in local volunteer events. With our Corporate Leadership team leading by exam-ple, we will facilitate company volunteer days at our chosen nonprofit partners for team bonding and community strengthening. Employees will receive an annual allocation of paid time off (PTO) hours for volunteerism. We look forward to bringing our successful and unique approach to the City of Fresno. Nowhere is the need for investment and service more important than Fresno’s unhoused and food insecure com-munities. Homelessness continues to be a crisis in California, and while Fresno has lower numbers than other big cities, it is still a constant struggle. Between 2010 and 2017, Fresno reduced homelessness by an impressive 59% thanks to their Housing First strategy. However, homelessness and food insecurity, especially for Fresnos youth, continues to be a top community concern. Sweet Flower has facilitated staff volunteer days, sponsored events, and giv tarily to several organizations addressing homelessness and hunger. This includes donating approximately to Food Share in Oxnard, Ventura County’s largest food bank resource center, co-sponsoring food driv volunteering on distribution days. Sweet Flower Corporate Leadership had the opportunity to work hands-on with other community volunteers distributing food, hygiene items, and essential home goods to those in need. We have also worked with several or-ganizations addressing childhood hunger, homelessness, and supportive services, including #HashtagLunchbag and Upward Bound House, among others. We intend to sponsor food and clothing drives, allocate resources, financial support, and volunteer hours to these Fresno’s programs and agencies: Fresno MissionFresno Mission welcomes men, women, and children experiencing homelessness, aids in addiction recovery, and supports abused and neglected women and children.fresnomission.org Sanctuary Transitional ShelterSanctuary Transitional Shelter operates an overnight shelter for homeless or otherwise dis-placed youth and young adults.fresnoeoc.org/transitional-shelter Central California Food Bank Central California Food Bank is dedicated to ending hunger in their neighborhoods. They pro-vide food to more than 220 agencies in Fresno and additional entities in Madera, Kings, Kern, and Tulare Counties. Central Food Bank serves over 280,000 people each month.ccfoodbank.org Financial Support of City Sponsored Activities & Organizations Heritage by Sweet Flower has identified the following city-sponsored activities and organizations we intend to partner with through financial support and volunteer opportunities to manifest sustainable results that all people in Fresno can enjoy and benefit from. As detailed in section 7.1.2. Environmentally Sustainable Business Model, Sweet flower will create a Green Team to support Fresno’s commitment to become a sustainable and green commu-nity. Our Green Team will be a volunteer committee of employees tasked with leading our sustainability efforts and continually looking at our operations through the lens of environmental stewardship. Our Green Team will volun-teer with, create initiatives with and support the following organizations. 7.1. SOCIAL RESPONSIBILITY PLAN t ~ fresno ■ I m1ss1on CENTRAL CALIFORNIA FOOD BANK ueritage SWEET FLOWER "j 7. COMMUNITY BENEFITS & INVESTMENT PLAN 164BY Keep Fresno BeautifulThe Keep Fresno Beautiful initiative was launched in 2019 to bring together civic-minded people and orga-nizations to help beautify Fresno through volunteering. Keep Fresno Beautiful is a city-wide effort to clean neighborhoods, streets, and highways by partnering with local organizations, nonprofits, churches, service organi-zations, and individuals within the community. keepfresnobeautiful.org Tree FresnoTree Fresno is transforming the San Joaquin Valley with water-wise trees and increased green space. A more massive urban tree canopy leads to a more sustainable and livable environment for everyone. Impacts include cleaner air and water, more investment, jobs and gradu-ates, and less crime, obesity, and poverty. treefresno.org Community OutreachThe first step in our community outreach plan starts before we open. We want all stakeholders (residents, businesses, community groups, police, and city rep-resentatives) to have a voice at the table as we prepare to serve Fresno. We will achieve this through direct personal outreach, not by hiring a canvassing team. Our outreach will be done by our CEO, Timothy Dodd, and Heritage by Sweet Flower’s Community Liaison. Our outreach strategy includes personally canvasing residences and business-es within 1,000 feet of our location. We will introduce Sweet Flower to the neighborhood by knocking on doors and notifying community members of the proposed project, soliciting any feedback, and answering questions about the new, highly regulated cannabis market. We will also invite them to continue the conversation by attending community meetings we will host or directly contacting us. These plans may be redirected to a virtual format providing the status of the COVID-19 crisis at the time of opening. While we believe that the sensitive addition of cannabis retail storefronts will be positive for the City of Fresno, it is crucial to address all concerns from the wider community. Cannabis businesses can often be misunderstood, creating discomfort amongst community members—which must be addressed through excellent customer service, extensive ongoing outreach, and education. To that end, we will proactively reach out to the surrounding Neighborhood Associations and any other appropriate community groups. Fresno has an envi-able amount of active community and neighborhood improvement groups, and we will introduce Heritage by Sweet Flower by sharing our plans and eliciting feedback. The purpose of these presentations and meetings is to listen to the broader community. Heritage by Sweet Flower’s success is dependent on our positive and mutually beneficial relationship with all of the community. 7.1. SOCIAL RESPONSIBILITY PLAN KEEP ~ FRESNO B EAUTI FU L uerI a{le SWEET FLOWER 7. COMMUNITY BENEFITS & INVESTMENT PLAN 165BY Sweet Flower believes that mitigation of impact starts with communication, education, and transparency. To engage all Fresno stakeholders, we will hold regular community meetings to encourage feedback on our overall operations and receive insight into any changes that need to be made to be a good neighbor. We will also develop and launch multiple online engagement platforms to receive updates on specific plans and register concerns. Heritage by Sweet Flower will use these online platforms as a tool to foster transparency with the city and the community. Heritage by Sweet Flower will work with the Fresno Police Department to go over our security systems and proto-cols and implement any advice for improvement. Additionally, we hope to bolster Fresno Police Department part-nerships with neighborhood groups. This includes Crime Stoppers, Bringing Broken Neighborhoods Back to Life, Neighborhood Watch, Citizens On Patrol, Citizen’s Police Academy, and the Police Chief’s Advisory Board. COVID-19 Emergency Community ResponseThrough active collaboration with our Community Advisory Committee and nonprofit partners, Sweet Flower was able to quickly and effectively assist and support our communities at the onset of the COVID-19 pandemic. This crisis has shown that each city depends on local support d times of need to provide services to our most vul-nerable populations. Sweet Flower immediately directed of funds to Food Share of Ventura County to help ensure that Ventura County’s largest food resource for tho need could fulfill critical demand. In the following months, another $5,000 donation was made, along with volunteer efforts at two food distribution events sponsored by Sweet Flower at Food Share. Sweet Flower also secured and delivered over 500 mask and glove kits to front line workers at nonprofits we currently support. Additionally, Sweet Flower’s Los Angeles location partnered with 9th Street Ramen and cannabis brand Old Pal to create a community initiative to feed those who risked their health to continue to feed all of us. Together they offered meals consisting of a “Take Home Ramen + Gyoza Kit” free of charge for anyone that works in hospitality, a grocery store, or food delivery, as well as Amazon delivery workers. Celebrating Fresno’s CultureFresno is located in the heart of California, home to a harmonious melting pot of ethnic heritages. Fresno’s diverse communities celebrate such holidays and events as Mexican Independence Day, Martin Luther King celebration, the Hmong New Year, Grape Blessings with the Armenian community, Greek Fest, traditional ceremonies at the Shin Zen Japanese gardens, and Cesar Chavez celebrations. The uniqueness of the city’s population’s heritage and backgrounds ranks Fresno among the most diverse cities in the United States. Fresno combines the metropolitan influences of nearby cities with the stunningly natural influences of Yosemite, Sequoia, and Kings Canyon Nation-al Parks. Fresno is also filled with concerts, festivals, community events, outdoor recreation opportunities, fami-ly-friendly attractions. These events serve as a testament to Fresno’s diversity and cultural vibrancy. Also, as the agricultural capital of the world, Fresno embodies the meaning of farm-to-table cuisine. The area’s wide range of farmers markets allows for the opportunity to purchase the freshest ingredients directly from growers and dine at the best restaurants. Heritage by Sweet Flower intends on supporting these events because they are an essential part of the city’s fabric. We are happy to assist them in accordance with the organization’s preference—whether that is an anonymous sponsorship or promotions on our website and in-store to our customers. We will work closely with event organizers to determine an appropriate and thoughtful way to lend our resources. Some of the events we are excited to support are:• The annual Woodward Shakespeare Festival in lush Woodward Park • Vintage Days at Fresno State University, a four-day celebration attracting 50,000 people to the Fresno State campus for social, cultural, and recreational activities• Cinco De Mayo Festival, a 3-day event that includes a variety of live entertainment including mariachi music and traditional Mexican folklore dances, crafts, and delicious food offerings• Big Fresno Fair, where for over 120 years, Fresno residents celebrated the local agricultural heritage with ex-hibits showcasing the area’s rich talents and bountiful offerings• Fresno County Fruit Trail where fruit stands overflow with ripe seasonal produce• Christmas Holiday Parade, a Fresno tradition for over 75 years; Downtown streets come alive with music, floats, and holiday merriment 7.1. SOCIAL RESPONSIBILITY PLAN ueritage SWEET FLOWER "j 7. COMMUNITY BENEFITS & INVESTMENT PLAN 166BY Partnerships with Local BusinessesSweet Flower is excited to integrate into and engage with the Fresno business community as a committed community partner. We are current members of The Fresno Chamber of Commerce and look forward to working with them to further their goal of promoting and supporting “the success of the regional business community through effective advocacy, education and relationship building.” We will look for existing established and new local businesses to partner with and support through the procurement of goods and services. We understand the importance of keeping dollars local and growing the economy. We intend to re-tain services from and partner with local small businesses, including business in the surrounding area of our location: West Shaw Print and CopyPromotional & Marketing Materialswestshawprint.com BYM Construction Group Inc.Buildout & Renovation of Site bmyinc.com Los Olivos Gardening ServicesLandscape Maintenance Mid-Valley Janitorial ServicesMaintenance & Janitorial Services Ameriguard Security SystemsAlarm Installation, Maintenance, & Monitoringameriguardsecuritysystems.com Community-Focused MarketingSweet Flower believes in the power of collaboration. Many of our marketing and promotions are community-focused. We plan to partner with licensed local cannabis social equity businesses to create effective promotions, assets, and curated product selections. Some current and previous successful communi-ty-focused marketing strategies include the popular “Give Back Kit,” a curated product bundle with all proceeds benefiting Black Cooperative Investment Fund (BCIF) and Equity First Alliance. Sweet Flower has long supported the BCIF as Sweet Flower CEO Timothy Dodd is a current board member. In June, 2020 we partnered with Aster Farms + Coolhaus Ice Cream (both fe-male-founded brands) during Pride Month, offering exclusive promotions that raised funds for a local LGBTQ+ organization. Sweet Flower also matched each customer purchase with a donation. Sweet Flower has also partnered with local food trucks and restaurants at our current locations to offer lunch with an in-store purchase. The food trucks we run promotions with are mostly BIPOC owned and operated. We intend to rep- 7.1. SOCIAL RESPONSIBILITY PLAN ueritage SWEET FLOWER "j WER • swm fLDWER • . GET YOUR FOOD TRUCK FIX AT SWEET FLOWER THURSDAY 11/19 I 4-7 PM SWEET FLOWER ARTS DISTRICT BELLY'S SLIDERS 6 WINGS FREE FRIES WITH SWEET FLOWER PURCHASE OVER S50 7. COMMUNITY BENEFITS & INVESTMENT PLAN 167BY licate these successful promotions in Fresno, helping to support local hospitality businesses. We hope to work with Fresno Food Trucks, Weeknight Eats, Food Truck Lunch, and Well + Fed. These events feature small businesses and support local vendors. ConclusionWe share the City of Fresno’s priority of maintaining the quality of life for its residents. Our core values perfectly reflect those of the city named after the Spanish word for “ash trees,” which flourish along the San Joaquin River. Fresno possesses a myriad of assets that make it an attractive location for Sweet Flower, its central location on the West Coast, its access to major transportation corridors and airports, its affordability, good neighborhoods, as well as training and educational opportunities. However, it is Fresno’s communities’ strength that will make our business and brand thrive, and we plan on reinvesting back into the city. We are excited to bring our hands-on approach to supporting and investing in the local community and the local organizations doing valuable work in Fresno. Our proven community outreach, integration, and partnership program will allow us to promptly address any issues, dedicate assets to ongoing outreach, and maintain an open-door policy to residents, nonprofits, civic and social or-ganizations, and businesses. Sweet Flower has successfully rolled out several locations across Southern California in neighborhoods including Downtown Los Angeles Arts District, Melrose, Westwood Village, and Studio City—and locations in Culver City and Pasadena slated to open in 2021. With each specific location, Sweet Flower strives to recognize the community’s unique needs and identity. We look forward to making a home in Fresno and sharing our vision of community prosperity with all of the city’s workers, residents, families, and stakeholders. 7.1. SOCIAL RESPONSIBILITY PLAN ueritage SWEET FLOWER "j 7. COMMUNITY BENEFITS & INVESTMENT PLAN 168BY 7.1.1. Expungement Clinics or Outreach Services Providing funding for or hosting expungement clinics or outreach services. Historically, cannabis arrests and convictions have been used as a reason to incarcerate Black, Indigenous, and People of Color and those of a low economic standing. These convictions, especially at the felony level, have gen-erational effects on the economies, livelihood, opportunities, and emotional well being of thousands of families and communities across California and the United States. These convictions pose obstacles to meaningful employment and housing, access to credit, insurance, and even affect voting rights. As the cannabis industry has moved from the fringes of legality into being declared an “essential business,” we must acknowledge this and do what we can to bring the same opportunity to individuals and communities disproportionately affected by the unjust war on drugs. As a company privileged to legally operate in the cannabis industry, we must do our part to help right these wrongs. If awarded a license, Sweet Flower will provide funding for, organize, and promote expungement clinics and out-reach services and provide job opportunities for qualifying candidates. The most effective way to achieve this is to partner with other licensed cannabis entities across all categories in Fresno and with proven nonprofits and community organizations to provide real resources and tangible results. Some Fresno community action agencies we intend to partner with for outreach and organization include: National Diversity & Inclusion Cannabis Alliance (NDICA) - NDICA’s mission is to create an ethical and equitable cannabis industry to reduce barriers contributing to the lack of representation of those most impacted by the War on Drugs, including people of color and other marginalized community members. The NDICA has an active local Fresno chapter and will be ideal partners. They have coordinated several combination expungement-job fairs in cities around the country, including hosting The Fresno Clean Slate Expungement Clinic and Resource Fair.thendica.org Leadership Counsel for Justice & Accountability - The Leadership Counsel for Justice & Accountability serves Fresno and the entire San Joaquin Valley. The Leadership Counsel works alongside the most impacted communities to advocate for sound policy and eradicate injustice to secure equal access to opportunity regardless of wealth, race, income, and place.leadershipcounsel.org Fresno Building Healthy Communities - Working to build a long-term foundation for a healthier community with a legacy to be carried on for years to come through community members’ leadership. We create social capital—bridging diverse communities and organiza-tions.fresnobhc.org We will use brand power and marketing to provide a platform to reach a broad spectrum of Fresno residents who will benefit greatly from these services, whether they enter the cannabis workforce or not. Sweet Flower commends the City of Fresno’s efforts to address this and looks forward to being a crucial partner in realizing the goal of a more inclusive and prosperous cannabis industry for all. 7.1.1. EXPUNGEMENT CLINICS ~ NDICA Nati onal Diversity an d Incl usion Ca nn t1 bis Alliance '' LEADERSHIP COUNSEL ---FOR ---~ JU STICE & ACCOUNTABILITY ueritage SWEET FLOWER "j 7. COMMUNITY BENEFITS & INVESTMENT PLAN 169BY 7.1.2. Environmentally Sustainable Business Model Incorporating an environmentally sustainable business model including energy efficient buildings and vehicles. Sweet Flower’s Fresno location will be designed in accordance with California Green Building Standards, CAL-Green, the nation’s first mandatory green building standards code. In addition to energy-efficient lighting initiatives that will reduce local environmental pollution and global greenhouse gas (GHG) emissions, we will employ a range of environmentally conscious design features. Our plumbing will consist of water-conserving fixtures and low flow toilets. Our store will provide recycling collection for non-hazardous material (including paper, glass, plastics, and metals) and architectural paints and coatings complying with volatile organic compound (VOC) limits. Outside Heritage by Sweet Flower, we will have anchored bicycle racks (if approved by the city) and enforce environmen-tal tobacco smoke (ETS) control. We will also provide designated priority parking for clean air vehicles. One of the largest sources of energy loss in a building is through the glass. We will use Sea-Tac Co. window films to reduce energy demand and our carbon footprint by providing 99.9 % UV protection. As an added benefit, these coatings offer an anti-graffiti barrier keeping the windows free of etchings and vandalism, with zero VOC. Heritage by Sweet Flower also plans on installing a solar power system. Solar power systems derive clean, pure energy from the sun. Traditional electricity is sourced from fossil fuels such as coal and natural gas. Generating electricity with solar power instead of fossil fuels can dramatically reduce greenhouse gas emissions, particularly carbon dioxide (CO2). Greenhouse gases, which are produced when fossil fuels are burned, lead to rising global temperatures and climate change. Heritage would be the first Sweet Flower store to do this, setting an example in sustainability for future locations. Within the building, Heritage by Sweet Flower will use ENERGY STAR appliances. Staff Breakroom appliances, including dishwasher and refrigerator, will be ENERGY STAR rated. The Inventory Room refrigerators will also be ENERGY STAR devices. In addition to an environmentally conscious building, Sweet Flower expands our green ethos throughout all opera-tions. One of the cornerstones of Sweet Flower culture is a commitment to environmental sustainability. Our Fres-no location will uphold the existing Sweet Flower standards and will be the model for expanding our excellence in environmentally responsible operations. Merchandise & Marketing Materials - Sweet Flower’s promotional merchandise and marketing materials will be made with recycled materials whenever possible. Allmade and Recover are brands that specialize in reducing the carbon footprint associated with production. Each Allmade shirt prevents an equivalent of up to 6 recycled plastic bottles from going into the ocean. Their tees are crafted with less water than conventional shirts and are manufac-tured sustainably in ethical factories, building better jobs and communities around them. Recover is a sustainable apparel company that reduces plastic pollution in rivers, oceans, and landfills. They source recycled plastic bottles and upcycled cotton for materials, minimize dyes, significantly reduced the use of chemicals, water, and energy in production, and have eliminated plastic packaging. allmade.com | recoverbrands.com Shopping Bags - We plan to work with Impak to develop environmentally friendly alternatives to traditional exit bags consistent with our existing branding—clean, high-end, and aesthetically pleasing. Partnering with a brand focused on eco-friendly solutions, we can reduce landfill, energy, and resource waste. Impak utilizes innovative materials that are reusable, recyclable, biodegradable, and compostable. We will employ their opaque OceanPoly reusable bags, containing a minimum of 25% recycled plastic recovered from polyethylene terephthalate (PET) plastic bottles or High-Density Polyethylene (HDPE) plastic bottles and bags. Their paper products use Sustainable Forestry Initiative (SFI) certified materials, which offer 40% post-consumer recycled content. impakretail.com 7.1.2. ENVIRONMENTALLY SUSTAINABLE ueritage SWEET FLOWER "j 7. COMMUNITY BENEFITS & INVESTMENT PLAN 170BY Heritage by Sweet Flower will also retail branded canvas bags. Customers will be encouraged to bring back canvas bags for future purchases, avoiding plastic or paper bags entirely. Green & Clean Exit Bags - Fresno will be our first location to offer HISIERRA brand child-resistant pouches are green packaging and produced using clean manufacturing. HISIERRA pouches are made locally in Southern Cali-fornia with 100% wind power energy and contain bio-based raw materials. Child-resistant exit bags are available to customers upon request. hisierra.com Delivery Vehicles - We will use hybrid vehicles for our customer deliveries at Heritage by Sweet Flower. A hybrid will burn less fuel than conventional cars and emit lower levels of greenhouse gases during operation. According to Federal emissions standards, the Toyota Prius is a Super Ultra Low Emissions Vehicle (SULEV). With clean emis-sions, there will be less poisonous gases and pollutants released into the atmosphere. Package Recycling Program - While we aim to partner with brands that practice sustainability, not all cannabis packaging is biodegradable. At Heritage by Sweet Flower, we hope to work with the city to develop a recycling program for non-biodegradable waste, including plastic and glass—in accordance with state regulations. calrecycle.ca.gov/swfacilities/compostables/cannabis Avoiding Single-Use Plastic - We believe that it is up to every individual to do their part to reduce waste. In our staff breakroom, we will not stock single-use plastics, including bags, cutlery, cups, and coffee pods, but will pro-vide washable, reusable, and recyclable alternatives. Cannabis Waste Management - An efficient Waste Management Plan (WMP) ensures that Sweet Flower operates under safe conditions, mitigating employee and public risk. Sweet Flower is proactively taking the necessary steps to set the highest industry standard by ensuring compliance with cannabis waste disposal requirements. Heritage by Sweet Flower will contract with Farmers Waste Services (FWS) to provide proper disposal of all cannabis waste. FWS is a leader in cannabis compliance waste standards, and they mobilize throughout California to accommodate many types of cannabis businesses, including grow sites, farms, testing labs, and retailers. A full-service, state-ap-proved cannabis waste removal business, Farmers Waste Services converts the cannabis waste collected into com-post and rich soil, helping to preserve the environment. Please see Section 3.7. Waste Management Plan for further details. farmerswasteservices.com Partnering with Environmentally Conscious BrandsGreen is not always green, so Sweet Flower is very selective about the brands we carry. Most of our products are from local suppliers that are also committed to sustainability. Sustainability is a cornerstone value of Sweet Flow-er, and we strive to partner with environmentally conscious producers. Michelle Mendoza, Sweet Flower’s Senior Buyer, handpicks brands based on their commitment to excellence, sustainability, and accountability. Highlighted partnerships include: Aster Farms - Located in Northern California, Aster Farms is committed to clean cultivation and pesticide-free, sustainably produced cannabis. As a third-generation family business with roots in olive oil, Aster Farms believes wholly in the power of nature to develop an excellent product. Pure Beauty - Pure Beauty encompasses a holistic approach to every aspect of their business. They have developed a “no run-off” cultivation technique keeping surrounding water safe for inhabitants. They utilize friendly bacteria, fungi, and protozoa, which provide nutrients and pro-tection. Their sustainability ethos also applies to packaging. Pure Beauty promises never to place profits over a clean and beautiful earth. 7.1.2. ENVIRONMENTALLY SUSTAINABLE I u ,: :r :: / ueritage SWEET FLOWER "j 7. COMMUNITY BENEFITS & INVESTMENT PLAN 171BY A Golden State - From Mount Shasta in Northern California, A Golden State has emerged as one of the leading high-quality cannabis brands. They pride themselves on maintaining a culti-vation style that has remained true to their roots, including watering plants from local mountain snowmelt and growing in a soil derived from coconut husk. The resulting product is a premium flower in distinct strains “created for recreation, relaxation, sharing with friends, unwinding solo, or finding the right headspace for enjoyment.” Rose Delights - Rose is a premium edibles brand combining creative culture, sustainable agri-culture, and award-winning chefs. They are infused with single-strain flower rosin, meticulously pressed in-house. They partner with local fruit farms and purveyors to ensure their environmen-tal practices go above and beyond state regulations. Moon Made Farms - Moon Made Farms has committed to advocacy, education, and research regarding the benefits of organic sun-grown cannabis. In addition to a pesticide-free, organic cultivation process, Moon Made Farms serves on the International Cannabis Association (ICFA) board, whose mission is to empower traditional farmers. Cosmic View - Cosmic View is 100% committed to sourcing only the most holistic, pesticide, and solvent-free ingredients that are grown and processed with sustainable farming methods. Their full sun California cannabis is made with a low-pressure CO2 supercritical extraction process to retain the full spectrum of terpenes and cannabinoids. Their herbal formulations are infused with wildcrafted or holistically grown, 100% pesticide-free herbs in heirloom Northern California extra virgin olive oil from Sonoma County. They use no hemp, isolates, added terpenes, additives, pre-servatives, flavorings, sweeteners—only the purest ingredients for the purest medicine. All their products are science-based and made by hand with love in San Rafael, California. Dr. Robb Farms - Sweet Flower is currently working on a partnership for our in-house line of flower and pre-rolls slated for 2021. The mission of Dr. Robb Farms is to provide quality, pes-ticide-free medicine to the California market. At their core, Dr. Robb Farms believes that their product can help enhance the quality of life and health. They believe in using science to produce consistent quality medicine and that by applying sound scientific methods to create clean medi-cine that is measured and safe for the public to benefit from. Green TeamLastly, to support Fresno’s commitment to become a sustainable and green community, we will have a Green Team. Our Green Team will be a volunteer committee of employees tasked with leading our sustainability efforts and continually looking at our operations through the lens of environmental stewardship. We recognize that sustainabil-ity starts with leadership: our executives are committed and passionate about this core business principle. We are committed to integrating Sweet Flower seamlessly into Fresno’s rich culture and look forward to being a part of the growing community. Keep Fresno Beautiful - The Green Team will take inspiration from the Keep Fresno Beautiful Initiative and regularly meet to guide our tenant improvements and focus on energy and water efficiency. Keep Fresno Beautiful regularly hosts clean up events, tree planting parties and orga-nizes trash pick up teams around Fresno. Sweet Flower’s Fresno Green Team will participate in, volunteer at, and sponsor these events. 7.1.2. ENVIRONMENTALLY SUSTAINABLE 'I KEEP ~ FRESNO ~ BEAUTIFUL ueritage SWEET FLOWER "j 7. COMMUNITY BENEFITS & INVESTMENT PLAN 172BY 7.1.3. Utilizing Blighted Areas of the City Utilizing vacant buildings, brownfields land, or blighted areas of the city for the business. “Blighted building” refers to a vacant residential, commercial, or industri-al building and all yards surrounding the building that violates one or more provisions of the Fresno Municipal Code or California State Law. It there-fore reduces the aesthetic appearance of its neighborhood, area, or district, is offensive to the senses, or is detrimental to nearby properties uses or property values. A blighted building includes a vacant building and the yards surround-ing the building that are not actively maintained, actively monitored, or active-ly secured. Our location at 3150 E. Olive Avenue fits the criteria of a blighted building as defined by the Fresno Municipal Code Section 10-603(d). It has been vacant for several years and reduces the aesthetic appearance of its neighborhood and district. It is also affecting a possible decline in neighborhood commercial property values. The location was formerly home to a minimart, laundromat, gym, and offices. When the previous tenants vacated the property, they left be-hind equipment, furniture, and trash inside the building and the property’s ex-terior. The property has been left unattended and has attracted illegal dumping and stray animals. Heritage by Sweet Flower intends to overhaul this property from the ground up completely. We look forward to making 3150 E. Olive Avenue, a safe, clean space that will positively affect the surrounding neighborhood. Heritage by Sweet Flower sees this location as an opportunity to provide equitable access to cannabis to Fresno’s diverse population and further Fresno’s clear directive that regulated cannabis should benefit all its neighborhoods and stakeholders. Fresno’s retail vacancy rate was at approximately 5% before the COVID-19 pandemic hit, and conservative estimates push that number to approximately 10% by January 2021. Established businesses are defaulting on leases, and new retail businesses cannot enter the current unstable landscape. Cannabis re-tail has been deemed an essential business by the State of California. It can fill these vacancies, spur local economies, provide needed tax revenue, and create well-paying jobs for Fresno. Vacant retail space benefits no one. Unoccupied retail spaces create “dead zones” where crime and transient encampments flourish undetected and un-addressed as negative impacts begin to spread to surrounding communities. Historically, communities can map and pinpoint crime radiating from vacant buildings, both commercial and residential, affecting as much as a two-mile span from vacant or neglected properties. Fresno’s inclusion of addressing vacant and blighted areas is well thought. Many studies show that the addition of well run legal cannabis businesses increases neighborhood security, lowers crime rates, and provides improved lighting, street maintenance, and overall beautification to the neighborhoods they locate in. 7.1.3. UTILIZING BLIGHTED AREAS ueritage SWEET FLOWER "j 7. COMMUNITY BENEFITS & INVESTMENT PLAN 173BY Sweet Flower will provide significant capital investment to the currently vacant property. This will include an ex-tensive renovation and expansion of the existing building, beautifying the premises, landscaping, and state-of-the-art security upgrades to enhance the property and the surrounding neighborhood. Sweet Flower considers this more than just a necessary business investment. We will not merely be opening our doors but laying down roots in this community and helping to revitalize the city. The need for equitable access to cannabis must be addressed and means ensuring all neighborhoods and their residents, regardless of economic standing or location, have local, safe, legal access to these products. Heritage by Sweet Flower will provide an essential service in this underserved area. We intend to be vital, active participants in the revitalization and economic growth of this unique neighborhood. NeighborhoodOur home, 3150 E. Olive Avenue, will be in Fresno City Council District 7, which encompasses central and south-east Fresno. Fresno Community Regional Medical Center marks District 7’s southern border and Manchester Center is at the northern border. Its western boundary runs along Blackstone Avenue, and the eastern edge circles around the Mayfair District. We are excited to be located in Council Member Nelson Esparza’s historically diverse district, home to a large Latino, Hmong, Cambodian, and Laotian community. We intend to be a positive addition to local and commercial businesses in the surrounding areas by supporting neighborhood revitalization, community investment, economic development, public safety, and sustainability. While the area has its share of challenges, including higher than city average levels of poverty and unemployment, it also has a growing number of neighborhood resource centers to meet these challenges head-on. Sweet Flower is committed to partnering with these entities in the district to help support their programs and initiatives to increase the nearby community’s quality of life. We have identified such groups as Fresno Building Healthy Communities, CARE Fresno, and the Fresno EOC Sanctuary Transitional Shelter as potential partners. Based on all of the revi-talization efforts happening throughout the city, we are excited to be a part of Fresno’s vision. Sweet Flower looks forward to serving as a model for economic growth in Fresno and beyond. Heritage by Sweet Flower plans to engage and work with the leadership and nearby communities on an ongoing basis, always looking to understand each neighborhood’s specific issues. As responsible business owners who deeply care about the community it oper-ates in, Sweet Flower will not only protect what people love about Fresno but will look to enhance those qualities. It is this type of relationship we envision establishing with every neighborhood and resident of Fresno, which will undoubtedly create a cleaner, safer, better place to live for everyone. 7.1.3. UTILIZING BLIGHTED AREAS ueritage SWEET FLOWER "j 7. COMMUNITY BENEFITS & INVESTMENT PLAN 174BY 7.1.3. UTILIZING BLIGHTED AREAS 3150 E. OLIVE AVENUE CURRENTLY RENDERINGS OF HERITAGE BY SWEET FLOWER 7. COMMUNITY BENEFITS & INVESTMENT PLAN 175BY 7.2. Public Health Outreach & Educational Program Describe the Commercial Cannabis Business plan to develop a public health outreach and educational program that outlines the risks of youth use of cannabis and that identifies resources available to youth related to drugs and drug addiction. Sweet Flower’s commitment to community education, outreach, and connection continues with a robust plan de-signed to precisely outline the risks of youth use of cannabis and identify resources in Fresno that are available to youth-related addiction. We believe it is essential to provide clear, up-to-date, data-based information about canna-bis use and abuse. How that information is articulated, communicated, and delivered is crucial in raising the “can-nabis intelligence” of youth and the entire Fresno community. Our values of community engagement, public health and safety, trust and transparency, and inclusivity and diversity inform and shape our plan. Cannabis—like other regulated products such as alcohol, tobacco, and prescription drugs—has side effects that consumers should be aware of. Sweet Flower only promotes the responsible use of cannabis. We have created materials that inform consumers of the risks associated with cannabis products. These risks include possible side effects, the dangers of driving while impaired, mixing cannabis with pharmaceuticals, preventing and identifying substance abuse, hazards of consumption during pregnancy and lactation, delayed onsets of products, and storage to protect children. We will engage with parents, educators, and Fresno community leaders through our website, social media channels, public education events, in-store educational materials, and partnering with local resources to support youth use prevention. These resources include schools, city programs, treatment centers, and community organizations that support youth education, prevention, and treatment. Sweet Flower supports the mission of Substance Use Disorder (SUD) Services, which is a division of the Fresno County Department of Behavioral Health (DBH). SUD Services provides education, prevention, and treatment services to reduce or eliminate alcohol and other drug-related barriers to ongoing health, well-being, and eco-nomic independence of individuals, families, and communities. Just one of the effective programs utilized is the Reality Tour®, which is a nationally recognized, evidence-based drug prevention program designed to increase parent-child communication and knowledge regarding substance use. This program is presented in collaboration with California Health Collaborative - PATH Project, a community-based prevention program with the goal of reducing cannabis use among youth and young adults, ages 10-25, in Fresno County.co.fresno.ca.us/departments/behavioral-health/substance-use-disorder-services/substance-use-disorder-prevention We will effectively engage with the Fresno community through its Central Valley Children’s Services Network. The network aids parents, guardians, and childcare providers find the necessary support, education, and community resources for high-quality care of children and youth, including drug education, prevention, and treatment services cvcsn.org/youth-services Below some community services, we intend to partner with through financial support, creating specific education materials, and working directly with to develop strategies to support education, youth prevention, and treatment: Comprehensive Youth Services Fresno - Comprehensive Youth Services Fresno (CYS) provides individual and family counseling for at-risk and abused or neglected children and their families also, anger management classes for adults and adolescents. CYS offers student assistance programs with on-campus crisis counseling for children and youth at Fresno Unified School District and Fresno County schools and Neighborhood Resource Centers. Rural programs include Keep Kids Drug-Free and One-to-One Mentoring.cysfresno.org 7.2. PUBLIC HEALTH OUTREACH ueritage SWEET FLOWER "j 7. COMMUNITY BENEFITS & INVESTMENT PLAN 176BY Family and Youth Alternatives - Family and Youth Alternatives (FYA) is a dual diagnosis program offering men-tal health and substance abuse treatment for children and adolescents (ages 5-21) and their families who receive Medi-Cal benefits. FYA is designed to provide structure in a safe and sober, supportive environment for adolescents to work a recovery program.mhsinc.org/listing/family-and-youth-alternatives-2 My Time Recovery - Family-owned drug rehab and alcohol addiction treatment center in Fresno, California, My Time Recovery offers comprehensive detox and therapeutic experiences in a nurturing and supportive community environment.mytimerecovery.com Sweet Flower is committed to working with the entire Fresno community and promoting public health and safety. We hold ourselves and our industry accountable as a positive, educational force in the City of Fresno. See Section 1.8. Customer Education for further information on our educational plan for Fresno. 7.3. Fresno Community Reinvestment Fund Describe whether the Business plans to contribute to the Fresno Community Reinvestment Fund, estab- lished to support local cannabis equity businesses. Sweet Flower will contribute to the Fresno Community Reinvestment Fund enthusiastically and meaningfully. We share the City of Fresno’s commitment to supporting social equity in cannabis. If awarded a license, Sweet Flower will participate as a social equity cannabis incubator and implement a robust and effective social equity hiring and training program. Our contribution to the Fresno Community Reinvestment Fund w ngoing and significant. Before commencing operations, Sweet Flower will make an initial contribution of to the fund to help kick-start this program as regulated cannabis is introduced to Fresno. Every Sweet Flower location has a dedicated Community Investment Fund (CIF). The CIF is 2% of each location’s profits allocated and distributed to local nonprofits, community sponsored events, and city-sponsored initiatives. Of Heritage by Sweet Flower’s CI will go directly to the Fresno Community Reinvestment Fund annually. We e our CIF will grow to annually by our third year of operations, and 25% of that would result in a contribution to the Fre mmunity Reinvestment Fund. Sweet Flower is committed to doing our part to make the cannabis industry more inclusive and to help right the wrongs of the unjust war on drugs. As a company privileged to legally operate in the cannabis industry, we must do our part to uplift people in the communities we serve. We will help Fresno achieve its goal of providing meaningful opportunities for all stakeholders and creating real economic mobility by fostering an inclusive, vibrant, and sus-tainable economy. We are committed to social equity at all levels of our operations. 7.3. FRESNO COMMUNITY FUND ueritage SWEET FLOWER "j 8. CONCLUSION 177BY CONCLUSION 8.0. Conclusion Sweet Flower sets the bar for the California cannabis industry. We are excited at the prospect of bringing our unique brand to the City of Fresno. Our compa-ny values community engagement, public health and safety, trust, transparency, inclusivity, and diversity. These values align with Fresno’s goals of regulated cannabis to provide equitable access and benefits for all stakeholders. We op-erate at the highest levels of compliance, integrity, and operational excellence. As active, local operators, we believe in giving back to each of the diverse and unique communities in which we operate. Sweet Flower has a long and very demonstrable record of making significant civic and charitable donations to groups working alongside us in the communities we serve. In serving our neighborhoods, we hire locally, enact robust community engagement efforts, and reinvest directly. In just two years across our existing stores,r has created over 120 well-paying jobs. We hav d over in compliant can-paying over in Ca es and more than in city taxes nvested over directly into the s we serve while providing an essenti to our over 200,000 customers. We operate our multiple California locations openly, honestly, and with the strictest regard for operational and regulatory compliance. We are proud to have built one of California’s most recognized and most respected cannabis retail brands, featured in People, US Weekly, the LA Times, and on HBO Max and NBC. . Being California natives, we strive to embody the essence of the Golden State—a focus on wellness, well-being, and on being environmentally con-scious and community-oriented. Our current locations include Studio City, Melrose, Downtown Los Angeles Arts District, and Westwood. We have been ranked as top-scoring applicants in Culver City and Pasadena and plan to open in those locations soon. We have chosen to open stores in communities that align with our vision. We firmly believe that Fresno’s diverse, vibrant commu-nity and history-rich culture would make an ideal home for Sweet Flower. Sweet Flower is the largest independent cannabis retailer in Southern Califor-nia. We look forward to expanding into the beautiful Central Valley by way of Fresno. With 30+ combined years of regulated cannabis experience, we have a flawless record of compliance, provide unparalleled education and training for our staff, have 5-star reviews with an impressive customer retention rate, and boast an exceptional history of safety and security. Sweet Flower hires locally and offers competitive wages and benefits. We understand that investing in our local community requires meaningful partnerships and engagement. Sweet Flower will bring its uniquely qualified and proven leadership to Fres-no, achieving positive results for the greater Fresno area with our demonstrat-ed and successful operational model. ueritage SWEET FLOWER "j 37 1.3. Proof of Capitalization 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. 1.3. PROOF OF CAPITALIZATION THIS SECTION CONTAINS PRIVILEGED & CONFIDENTIAL INFORMATION.ueritage SWEET FLOWER -; CALlFORNIA ASSOCIATION OF REALTOR.Sg' COMMERCIAL LEASE AGREEMENT (C.A.R. Form CL, Revised 12/15) Date (For reference only): November 20, 2020 _______________ 11'.'-'R..,_G=-.:;ln'-'-v'-'e=-=s=-=-t:..:.m:..;:e:;.;n..,_t..,_T-'-'ru=-=s=-=t-=a:..:.n:..=d:..cJ=-=a=-g--=a=-=-t-=S:..:.;lnc:..g""'h-'--=B=-=a=-=d.;..;h..::.e;:;;sh""'a:c..... ______________ ("Landlord") and -------------------'S=-w~ee""t'""'F...,l-=-o.,_,w-=e-'-r..,_F-'-re=-=s=-'-n'-'o'-=2'--'L=-=L=-=C=--------------------("Tenant") agree as follows: 1. 2. 3. 4. PROPERTY: Landlord rents to Tenant and Tenant rents from Landlord, the real property and improvements described as: 3150 East Olive Avenue Fresno CA 93705 ("Premises"), which comprise approximately 100.000 % of the total square footage of rentable space in the entire property. See exhibit ______ for a further description of the Premises. TERM: The term begins on (date) -------------=D-=e=-=c-=e:..:.m'-"b=-=e"-r--'1"-=2-=-02""0"-------------("Commencement Date"), (Check A or B): ~ A. Lease: and shall terminate on (date) November 30, 2030 at 11:59 [}\M ~PM.Any holding over after the term of this agreement expires, with Landlord's consent, shall create a month-to-month tenancy that either party may terminate as specified in paragraph 2B. Rent shall be at a rate equal to the rent for the immediately preceding month, payable in advance. All other terms and conditions of this agreement shall remain in full force and effect. D B. Month-to-month: and continues as a month-to-month tenancy. Either party may terminate the tenancy by giving written notice to the other at least 30 days prior to the intended termination date. subject to any applicable laws. Such notice may be given on any date. 0 C. RENEWAL OR EXTENSION TERMS: See attached addendum ______________________ _ BASE RENT: A. Tenant agrees to pay Base Rent at the rate of (CHECK ONE ONLY:) D (1) $ _________ per month, for the term of the agreement. D (2) $ _________ per month, for the first 12 months of the agreement. Commencing with the 13th month, and upon expiration of each 12 months thereafter, rent shall be adjusted according to any increase in the U.S. Consumer Price Index of the Bureau of Labor Statistics of the Department of Labor for All Urban Consumers ("CPI") for -------------,----------= (the city nearest the location of the Premises), based on the following formula: Base Rent will be multiplied by the most current CPI preceding the first calendar month during which the adjustment is to take effect, and divided by the most recent CPI preceding the Commencement Date. In no event shall any adjusted Base Rent be less than the Base Rent for the month immediately preceding the adjustment. If the CPI is no longer published, then the adjustment to Base Rent shall be based on an alternate index that most closely reflects the CPI. D (3) $ ________ per month ior the period commencing _________ and ending _________ and $ ________ per month for the period commencing and ending and $ ________ per month for the period commencing and ending ________ _ D (4) In accordance with the attached rent schedule. ~ (5) Other: See Addendum for text B. Base Rent is payable in advance on the 1st (or[] ____ ) day oi each calendar month, and is delinquent on the next day. C. If the Commencement Date falls on any day other than the first day of the month, Base Rent for the first calendar month shall be prorated based on a 30-day period. If Tenant has paid one full month's Base Reni in advance of Commencement Date, Base Rent for the second calendar month shall be prorated based on a 30-day period. RENT: A. Definition: ("Rent") shall mean all monetary obligations of Tenant to Landlord under the terms of this agreement, except security deposit. B. Payment: Rent shall be paid to (Name) Jagat Badhesha at (address) ---------------,------------------------------, or at any other location specified by Landlord in writing to Tenant. C. Timing: Base Rent shall be paid as specified in paragraph 3. All other Rent shall be paid within 30 days after Tenant is billed by Landlord. 5. EARLY POSSESSION: Tenant is entitled to possession of the Premises on ------------------------.-...-- If Tenant is in possession prior to the Commencement Date. during this time (i) Tenant is not obligated to pay Base Rent, and (ii) Tenant LJ is Dis not obligated to pay Rent other than Base Rent. Whether or not Tenant is obligated to pay Rent prior to Commencement Date, Tenant is obligated to comply with all other terms of this agreement. 6. SECURITY DEPOSIT: A. Tenant agrees to pay Landlord as a security deposit. Tenant agrees not to hold Broker responsible for its return. (IF CHECKED:) D If Base Rent increases during the term of this agreement, Tenant agrees to increase security deposit by the same proportion as the increase in Base Rent. B. All or any portion of the security deposit may be used, as reasonably necessary, to: (i) cure Tenant's default in payment of Rent, late charges, non-sufficient funds ("NSF") fees, or other sums due; (ii) repair damage, excluding ordinary wear and tear, caused by Tenant or by a guest or licensee of Tenant; (iii) broom clean the Premises, if necessary, upon termination of tenancy; and (iv) cover any other unfulfilled obligation of Tenant. SECURITY DEPOSIT SHALL NOT BE USED BY TENANT IN LIEU OF PAYMENT OF LAST MONTH'S RENT. If all or any portion of the security deposit is used during tenancy, Tenant agrees to reinstate the total security deposit within 5 days after written notice is delivered to Tenant. Within 30 days after Landlord receives possession of the Premises, Landlord shall: (i) furnish Tenant an itemized statement indicating the amount of any security deposit received and the basis for its disposition, and (ii) return any remaining portion of security deposit to Tenant. However, if the Landlord's only claim upon the security deposit is for unpaid Rent, then the remaining portion of the security deposit, after deduction of unpaid Rent, shall be returned within 14 days after the Landlord receives possession. C. No ;,t,,es~, sew,dy deposd. ooless ,eqW,ed by local o<d'"'""' Landlord's Initials · , ( • J-{. f? ) Tenant's Initials © 2015, California Association of REAL TORS®, Inc. CL REVISED 12/15 (PAGE 1 OF 6) COMMERCIAL LEASE AGREEMENT CL PAGE 1 OF 6 Iron Ker Real E,101,. 675 W :-lets ,\\c Sic 107 Frc.rno CA 93711 Phone (55'1)470-8038 Fax 3150 E Olive Mc Elise Wrbcngn Produced w1lh Lone Wolf Transac1,ons (z,pForm Ed,t,on) 23\ Shearson Cr Cambridge, Ontano. Canada NH 1J5 www !wolf com -~ -~-~>~---~~ ~~-- ·· · · .:_,)Lt, ~~;;. ~ --~~ ·/ :•"+--,-_ ~ ... -.. Premises: 3150 Easr Olive Avenue Fresno CA 93705 7. PAYMENTS: Date November 20 2020 A. B. C. D. E. 8. 9. 10. Rent: From 12/0112020 To 12/0112021 Date Date Security Deposit . Other: Category Other: Category Total:. TOTAL DUE s ---~J~s~ s -------' s ____ _ $ ____ _ s --~13=B ~ B.ruM.Q s ______ _ $ _____ _ s ______ _ s ______ _ s _____ _ BALANCE DUE ~ s ---=3=Bo S ___ s _____ _ s _____ _ s -------' PARKING: Tenant is entitled to -;-:-::-,-,-:--::---::----unreserved and __________ reserved vehicle parking spaces. The right to parking O is O is not included in the Base Rent charged pursuant to paragraph 3. If not included in the Base Rent, the parking rental fee shall be an additional S ,----:--~--,-,,.--per month. Parking space(s) are to be used for parking operable motor vehicles. except for trailers, boats. campers. buses or trucks (other than pick-up trucks) Tenant shall park in assigned space(s) only. Parking space(s) are to be kept clean. Vehicles leaking oil, gas or other·motor vehicle fluids shall not be parked in parking spaces or on the Premises. Mechanical work or storage of inoperable vehicles is not allowed in parking space(s) or elsewhere on t~e Premises. No overnight parking is permitted. ADDITIONAL STORAGE: Storage is permitted as follows· The right to additional storage space O is O is not included in the Base Rent charged pursuant to paragraph 3. If not included in Base Rent. storage space shall be an additional S ______ per month. Tenant shall store only personal property that Tenant owns. and shall not store property that is claimed by another, or in which another has any right. title. or interest Tenant shall not store any improperly packaged food or perishable goods. fiammable materials. explosives. or other dangerous 0• hazardous material. Tenant shall pay for, and be responsible for, the clean-up of any contamination caused by Tenant's use of the storage area LATE CHARGE; INTEREST; NSF CHECKS: Tenant acknowledges tt-at either late payment of Rent or issuance of a NSF check may cause Landlord to incur costs and expenses, the exact amount of 1•!hich are extrnr,-ely diff:cult and impractical to determine. These costs may include. but are not limited to, processing, enforcement and accounting expenses. and late charges imposed on Landlord. If any installment of Rent due from Tenant is not received by Landlord within 5 calendar days after date due. or if a check is returned NSF, Tenant shall pay to Landlord. respectively. $5 percent as late charge, plus 10% interest per annum on the delinquent amount and S25.00 as a NSF fee, any of which shall be deemed additional Rent. Landlord and Tenant agree that these charges represent a fair and reasonable estimate of the costs Landlord may incur by reason of Tenant's late or NSF payment. Any late charge, delinquent interest. or NSF fee due shall be paid wrth the current installment of Rent. Landlord's acceptance of any late charge or NSF fee shall not constitute a waiver as to any default of Tenant. Landlord's right to collect a Late Charge or NSF fee shall not be deemed an extension of the date Rent is due under paragraph 4, or prevent Landlord from exercising any other rights and remedies under this agreement. and as provided by law. 11. CONDITION OF PREMISES: Tenant has examined the Premises and acknowledges that Premise is clean and in operative condition, with the following exceptions: Premises need repair and cleaning. Thar is the responsibility of the tenant Items listed as exceptions shall be dealt with in the following manner: __________________________ _ 12, ZONING ANO LAND USE: Tenant accepls the Premises subject to all local, state and federal laws. regulations and ordinances ("Laws"). Landlord makes no representation or warranty that Premises are now or in the fuiure will be suitable for Tenant's use. Tenant has made its own investigation regarding all applicable Laws. 13. TENANT OPERATING EXPENSES: Tenant agrees to pay for all utilities and services directly billed to Tenant. 14, PROPERTY OPERATING EXPENSES: A. Tenant agrees to pay its proportionate share of Landlord's estimated monthly property operating expenses, including but not limited to. common area maintenance, consolidated utility and service bills, insurance, and real property taxes, based on the ratio or the square footage of the Premises to the total square footage of the rentable space in the entire property. __________________ _ ORB. [J (If checked) Paragraph 14 does not apply 15. USE: The Premises are for the sole use as ~S~e.,.e~A~d~d~e~n~d~u~m--,--;;----,---c=---,-----,---------------- No other use is permitted withOut Landlord's prior wntten consent. It any use by Tenant causes an increase in the premium on Landlord's existing property insurance, Tenant shall pay for the increased cost. Tenant will comply with all Laws affecting its use of the Premises. 16. RULES/REGULATIONS: Tenant agrees to comply with all rules and regulations of Landlord (and, if applicable, Ownefs Association) that are at any time posted on the Premises or delivered lo Tenant. Tenant shall not. and shall ensure that guests and licensees of Tenant do not. disturb, annoy. endanger, or interfere with other tenants of the building or neighbors. or use the Premises for any unlawful purposes, including, but not limited to, using, manufacturing, selling, storing, or transporting illicit drugs or other contraband, or violate any law or ordinance, or committing a waste or nuisance on or about the Premises. 17. MAINTENANCE: A. Tenant OR O (If checked, Landlord) shall professionally maintain the Premises including neating, air conditioning, electrical, plumbing and waler systems. if an . and keep glass, windows and doors in operable and sate condition Unless Landlord is checked, if Tenant fails to maintain the Premises. Land rd may/contract for or perform such mainte~ance. end charge Tenant for Landlord's cost. B. Landlord OR O (If , e_s!sed, Tenant) shall maintain the roof. foundation, exterior walls. common areas and ___________ _ Landlord's Initials Tenant's Initials ( dff CL REVISED 12/15 (PAGE 2 OF 6) COMMERCIAL LEASE AGREEMENT (CL PAGE 2 OF 6) Produc.tid w1\h Lone Woll Tran\'.ac11ons (t,pForm £d1l1on) :JJI ShC!;m,;onC1 Ca'Tll:)f1dge Onlar•o CWKle!O NlT 1J5 WWW !wolf com ~--l~1~t1i,,••~---· Premises: 3150 East Olive Avenue Fresno CA 93705 Date November 20, 2020 18. AL TERA TIONS: Tenant shall not make any alterations in or about the Premises, including installation of trade fixtures and signs, without Landlord's prior written consent, which shall not be unreasonably withheld. Any alterations to the Premises shall be done according to Law and with required permits. Tenant shall give Landlord advance notice of the commencement date of any planned alteration, so that Landlord, at its option, may post a Notice of Non-Responsibility to prevent potential liens against Landlord's interest in the Premises. Landlord may also require Tenant to provide Landlord with lien releases from any contractor performing work on the Premises. 19. GOVERNMENT IMPOSED ALTERATIONS: Any alterations required by Law as a result ofTenant's use shall be Tenant's responsibility. Landlord shall be responsible for any other alterations required by Law. 20. ENTRY: Tenant shall make Premises available to Landlord or Landlord's agent for the purpose of entering to make inspections, necessary or agreed repairs, alterations, or improvements, or to supply necessary or agreed services. or to show Premises to prospective or actual purchasers, tenants, mortgagees, lenders, appraisers, or contractors Landlord and Tenant agree that 24 hours notice (oral or written) shall be reasonable and sufficient notice. In an emergency, Landlord or Landlord's representative may enter Premises at any time without prior notice. 21. SIGNS: Tenant authorizes Landlord to place a FOR SALE sign on the Premises at any time, and a FOR LEASE sign on the Premises within the 90 (or □-------) day period preceding the termination of the agreement. 22. SUBLETTING/ASSIGNMENT: Tenant shall not sublet or encumber all or any part of Premises, or assign or transfer this agreement or any interest in it, without the prior written consent of Landlord. which shall not be unreasonably withheld. Unless such consent is obtained, any subletting, assignment, transfer, or encumbrance of the Premises, agreement, or tenancy, by voluntary act of Tenant, operation of law, or otherwise, shall be null and void, and, at the option of Landlord, terminate this agreement. Any proposed sublessee, assignee, or transferee shall submit to Landlord an application and credit information for Landlord's approval. and, if approved, sign a separate written agreement with Landlord and Tenant. Landlord's consent to any one sublease, assignment, or transfer, shall not be construed as consent to any subsequent sublease. assignment, or transfer, and does not release Tenant of Tenant's obligation under this agreement. 23. POSSESSION: If Landlord is unable to deliver possession of Premises on Commencement Date, such date shall be extended to the date on which possession is made available to Tenant. However. the expirat,on date shall remain the same as specified in paragraph 2. If Landlord is unable to deliver possession within 60 (or □-----) calendar days after the agreed Commencement Date, Tenant may terminate this agreement by giving written notice to Landlord, and shall be refunded all Rent and security deposit paid. 24. TENANT'S OBLIGATIONS UPON VACATING PREMISES: Upon termination of agreement, Tenant shall: (i) give Landlord all copies of all keys or opening devices to Premises, including any common areas; (ii) vacate Premises and surrender it to Landlord empty of all persons and personal property; (iii) vacate all parking and storage spaces; (iv) deliver Premises to Landlord in the same condition as referenced in paragraph 11; (v) clean Premises; (vi) give written notice to Landlord of Tenant's forwarding address: and (vii) ___________________ _ All improvements installed by Tenant, with or without Landlord's consent. become the property of Landlord upon termination. Landlord may nevertheless require Tenant to remove any such improvement that did not exist at the time possession was made available to Tenant. 25. BREACH OF CONTRACT/EARLY TERMINATION: In event Tenant, prior to expiration of this agreement, breaches any obligation in this agreement, abandons the premises, or gives notice or tenant's intent to terminate this tenancy pnor to its expiration, in addition to any obligations established by paragraph 24, Tenant shall also be responsible for lost rent, rental commissions. advertising expenses, and painting costs necessary to ready Premises for re-rental. Landlord may also recover from Tenant: (i) the worth, at the time of award, of the unpaid Rent that had been earned at the time of termination; (ii) the worth, at the time of award, of the amount by wh:ch the unpaid Rent that would have been earned after expiration until the lime of award exceeds the amount of such rental loss the Tenant proves could have been reasonably avoided; and (iii) the worth, at the time of award, of the amount by which the unpaid Rent for the balance of the term after the time of award exceeds the amount of such rental loss that Tenant proves could be reasonably avoided. Landlord may elect to continue the tenar,::y in effect for so long as Landlord does not terminate Tenant's right to possession, by either written notice of termination of possession or by reletting the Premises to another who takes possession, and Landlord may enforce all Landlord's rights and remedies under this agreement. including the right to recover the Rent as 1t becomes due. 26. DAMAGE TO PREMISES: If, by no fault of Tenant, Premises are totally or partially damaged or destroyed by fire, earthquake, accident or other casualty, Landlord shall have the right to restore the Premises by repair or rebuilding. If Landlord elects to repair or rebuild, and is able to complete such restoration within 90 days from the date of damage, subject to the terms of this paragraph, this agreement shall remain in full force and effect. If Landlord is unable to restore the Premises within this time, or if Landlord elects not to restore, then either Landlord or Tenant may terminate this agreement by giving the other written notice. Rent shall be abated as of the date of damage. The abated amount shall be the current monthly Base Rent prorated on a 30-day basis. If this agreement is not terminated. and the damage is not repaired, then Rent shall be reduced based on the extent to which the damage interferes with Tenant's reasonable use of the Premises If total or partial destruction or damage occurs as a result of an act of Tenant or Tenant's guests, (i) only Landlord shall have the right, at Landlord's sole discretion, within 30 days after such total or partial destruction or damage to treat the lease as terminated by Tenant, and (ii) Landlo:d shall have the nght to recover damages from Tenant. 27. HAZARDOUS MATERIALS: Tenant shall not use, store. generate, re,ease or dispose of any hazardous material on the Premises or the property of which the Premises are part. However, Tenant is permitted to make use of such materials that are required to be used in the normal course of Tenant's business provided thai Tenant complies with all applicable Laws related to the hazardous materials. Tenant is responsible for the cost of removal and remediation, or any clean-up of any contamination caused by Tenant. 28. CONDEMNATION: If all or part of the Premises is condemnf'!d for public use. either party may terminate this agreement as of the date possession is given to the condemner. All condemnation proceeds, exclusive of those allocated by the condemner to Tenant's relocation costs and trade fixtures, belong to Landlord. 29. INSURANCE: Tenant's personal property, fixtures, equipment, inventory and vehicles are not insured by Landlord against loss or damage due to fire, theft, vandalism, rain, water, criminal or negligent acts of others, or any otrer cause. Tenant is to carry Tenant's own property insurance to protect Tenant from any such loss. In addition, Tenant shall carry (i) liability insurance in an amount of not less than and (ii) property insurance in an amount sufficient to cover the replacement cost of the property if Tenant is responsible for maintenance under paragraph 17B. Tenant's insurance shall name Landlord and Landlord's agent as additional insured. Tenant, upon Landlord's request, shall provide Landlord with a certificate of insurance establishing T.~nant's compliance. Landlord shall maintain liability insurance insuring Landlord, but not Tenant, in an amount of at least , plus property insurance in an amount sufficient to cover the replacement cost of the property unless Tenant is responsible for mainten, nee pursuant to pJragraph 178. Tenant is advised to carry business interruption insurance in an amount at least sufficient to cover Tenant'~ complete rental obl1~alion to Landlord. Landlord is advised to obtain a policy of rental loss insurance. Both Landlord and Tenant relea~~ each othe, and wa;ve~thei~n~ect1ve rights to subrogation against each other, for loss or damage ~~ezsurance. Landlord's Initials / -~ Tenant's Initials CL REVISED 12/15 (PA 3 OF 6) COMMERCIAL LEASE AGREEMENT (CL PAGE 3 OF 6) Produced with lone Wolf Transac11ons (z,pForm Ed1I1on) 231 Shearson Cr Cambridge Onlario. Canada NH 1J5 www ~volf com JISO E Oli1c Mc Premises: 3150 East Olive Avenue Fresno CA 93705 Date November 20, 2020 30. TENANCY STATEMENT (ESTOPPEL CERTIFICATE): Tenant shall execute and return a tenancy statement (estoppel certificate), delivered to Tenant by Landlord or Landlord's agent, within 3 days after its receipt The tenancy statement shall acknowledge that this agreement is unmodified and in full force, or in full force as modified. and state the modifications. Failure to comply with this requirement (i) shall be deemed Tenant's acknowledgment that the tenancy statement is true and correct. and may be relied upon by a prospective lender or purchaser; and (ii) may be treated by Landlord as a material breach of this agreement. Tenant shall also prepare, execute, and deliver to Landlord any financial statement (which will be held in confidence) reasonably requested by a prospective lender or buyer. 31. LANDLORD'S TRANSFER: Tenant agrees that the transferee of Landlord's interest shall be substituted as Landlord under this agreement. Landlord will be released of any further obligation to Tenant regarding the security deposit. only if the security deposit is returned to Tenant upon such transfer. or if the security deposit is actually transferred to the transferee. For all other obligations under this agreement, Landlord is released of any further liability to Tenant. upon Landlord's transfer. 32. SUBORDINATION: This agreement shall be subordinate to all existing liens and, at Landlord's option, the lien of any first deed of trust or first mortgage subsequently placed upon the real property of which the Premises are a part, and to any advances made on the security of the Premises, and to all renewals, modifications, consolidations. replacements. and extensions. However, as to the lien of any deed of trust or mortgage entered into after execution of this agreement, Tenant's right to quiet possession of the Premises shall not be disturbed if Tenant is not in default and so long as Tenant pays the Rent and observes and performs all of the provisions of this agreement. unless this agreement is otherwise terminated pursuant to its terms. If any mortgagee. trustee. or ground lessor elects to have this agreement placed in a security position prior to the lien of a mortgage. deed of trust. or ground lease. and gives written notice to Tenant. this agreement shall be deemed prior to that mortgage, deed of trust. or ground lease. or the date of recording. 33. TENANT REPRESENTATIONS; CREDIT: Tenant warrants that all statements in Tenant's firancial documents and rental application are accurate. Tenant authorizes Landlord and Broker(s) to obtain Tenant's credit report at time of application and periodically during tenancy in connection with approval, modification. or enforcement of this agreement. Landlord may cancel this agreement: (i) before occupancy begins. upon disapproval of the credit report(s); or (ii) at any time. upon discovering that information in Tenant's application is false. A negative credit report reflecting on Tenant's record may be submitted to a credit reporting agency. if I enanl fails to pay Rent or comply with any other obligation under this agreement. 34. CONSTRUCTION-RELATED ACCESSIBILITY STANDARDS: Landlord states that the Premises [J has. or ~ has not been inspected by a Certified Access Specialist. If so. Landlord states that the Premises [j has, or ~ has not been determined to meet all applicable construction- related accessibility standards pursuant to Civil Code Section 55.53. 35. DISPUTE RESOLUTION: A. MEDIATION: Tenant and Landlord agree to mediate c1ny dispute or claim arising between them out of this agreement. or any resulting transaction. before resorting to arbitration or court action, subject to paragraph 35B(2) below. Paragraphs 35B(2) and (3) apply whether or not the arbitration provision is initialed. Mediation fees. if any. shall be divided equally emong the parties involved. If for any dispute or claim to which this paragraph applies, any party commences an action wi!ho:.it first attempting to resolve the matter through mediation. or refuses to mediate after a request has been made, then that party shall not be entitled to recover attorney fees, even if they would otherwise be available to that party in any such action. THIS MEDIATION PROVISION APPLIES VVHETHER OR NOT THE ARBITRATION PROVISION IS INITIALED. 8. ARBITRATION OF DISPUTES: (1) Tenant and Landlord agree th<1t any dispute or claim in Law or equity arising between them out of this agreement or any resulting transaction, which is not settled through mediation, shall be decided by neutral, binding arbitration, including and subject to paragraphs 358(2) and (3) below. The arbitrator shall be a retired judge or justice, or an attorney with at least 5 years of real estate transactional law experience, unless the parties mutually agree to a different arbitrator, who shall render an award in accordance with substantive California Law. In all other respects, the arbitration shall be conducted in accordance with Part Ill, Title 9 of the California Code of Civil Procedure. Judgment upon the award of the arbitrator(s) may be entered in any court having jurisdiction. The parties shall have the right to discovery in accordance with Code of Civil Procedure §1283.05. (2) EXCLUSIONS FROM MEDIATION AND ARBITRATION: The following matters are excluded from Mediation and Arbitration hereunder: (i) a judicial or non-judicial foreclosure or other action or proceeding to enforce a deed of trust. mortgage. or installment land sale contract as defined in Civil Code §2985; (ii) an unlawful detainer action: {iii) the filing or enforcement of a mechanic's lien; (iv) any matter that is within the jurisdiction of a probate. small claims, or bankruptcy co,Jrt ard (v) an action for bodily injury or wrongful death, or for latent or patent defects to which Code of Civil Procedure §337.1 or §337.15 applies The filing of a court action to enable the recording of a notice of pending action, for order of attachment, receivership, injunction, or other provisional remedies, shall not constitute a violation of the mediation and arbitration provisions. (3) BROKERS: Tenant and Landlord agree to mediate and a0 bitrate di~putes or cla,ms involving either or both Brokers. provided either or both Brokers shall have agreed to such mediation or arbitra'.ion. prior to. or within a reasonable time after the dispute or claim is presented to Brokers. Any election by either or both Brokers to participate in media'.;on or arbitrotion shall not resJI! in Brokers being deemed parties to the agreement. "NOTICE: BY INITIALING IN THE SPACE BELO'.l\f YOU ARE AGREEING TO HAVE ANY DISPUTE ARISING OUT OF THE MATTERS INCLUDED IN THE 'ARBITR~ TION OF DISPUTES' PROVISION DECIDED BY NEUTRAL ARBITRATION AS PROVIDED BY C.ALIFORN!A LAW AND YOU ARE GIVING UP ANY RIGHTS YOU MIGHT POSSESS TO HAVE THE DISPUTE LITIGATEO IN A COURT OR .JURY TRIAL BY INITIALING IN THE SPACE BELOW YOU ARE GIVING UP YOUR JUDICIAL RIGHTS TO O!SCOVERY AND APPEAL, UNLESS THOSE RIGHTS ARE SPECIFICALLY INCLUDED IN THE 'ARBITRATION OF DISPUTES' PROVISION. IF YOU REFUSE TO SUBMIT TO ARBITRATION AFTER AGREEING TO THIS PROVISION, YOU MAY BE COMPELLED TO ARBITRATE UNDER THE AUTHORITY OF THE CALIFORNIA CODE OF CIVIL PROCEDURE. YOUR AGREEMENT TO THIS ARBITRATION PROVISION IS VOLUNTARY." "WE HAVE READ AND UNDERSTAND THE FOREGOING AND AGREE TO SUBMIT DISPUTES ARISING OUT OF THE MATTERS INCLUDED IN THE 't,RB!T '.\.TION CF DIS?UTES' PROVISION TO NEUTRAL ARBITRATION." ·--------__ _ Landlord's Initials ~ \ / 1 ( J.J. /l) CL REVISED 12/1~4 OF 6) ., Tenant's Initials COMMERCIAL LEASE AGREEMENT (CL PAGE 4 OF 6) Produced with Lone VVolf Transac11ons (21pr orrn [ d1!1on} 231 Sr1oarson Cr Cambr1,:f-;:Je On1ar10 Canoda N 1T 1 JS \VV.W fwolf com ~ t ..... ""-... .;;,vi. . ....,;, c,......_,,.:n,.,.,,..,., Premises: 3150 East Olive Avenue Fresno CA 93705 Date November 20, 2020 36. JOINT AND INDIVIDUAL OBLIGATIONS: If there is more than one Tenant, each one shall be individually and completely responsible for the performance of all obligations of Tenant under this agreement, jointly with every other Tenant, and individually, whether or not in possession. 37. NOTICE: Notices may be served by mail, facsimile, or courier at the following address or location, or at any other location subsequently designated: Landlord:_____________________ Tenant ______________________ _ Notice is deemed effective upon the earliest of the following: (i) personal receipt by either party or their agent; (ii) written acknowledgement of notice; or (iii) 5 days after mailing notice to such location by first class mail, postage pre-paid. 38. WAIVER: The waiver of any breach shall not be construed as a continuing waiver of the same breach or a waiver of any subsequent breach. 39. INDEMNIFICATION: Tenant shall indemnify, defend and hold Landlord harmless from all claims, disputes, litigation, judgments and attorney fees arising out of Tenant's use of the Premises. 40. OTHER TERMS AND CONDITIONS/SUPPLEMENTS: ___________________________ _ The following ATTACHED supplements/exhibits are incorporated in this agreement: D Option Agreement <CAR Form OA) 41. ATTORNEY FEES: In any action or proceeding arising out of this agreement. the prevailing party between Landlord and Tenant shall be entitled to reasonable attorney fees and costs from the non-prevailing Landlord or Tenant, except as provided in paragraph 35A. 42. ENTIRE CONTRACT: Time is of the essence. All prior agreements between Landlord and Tenant are incorporated in this agreement, which constitutes the entire contract. It is intended as a final expression of the parties' agreement, and may not be contradicted by evidence of any prior agreement or contemporaneous oral agreement. The parties further intend that this agreement constitutes the complete and exclusive statement of its terms, and that no extrinsic evidence whatsoever may be introduced in any judicial or other proceeding, if any, involving this agreement. Any provision of this agreement that is held to be invalid shall not affect the validity or enforceability of any other provision in this agreement. This agreement shall be binding upon, and inure to the benefit of. the heirs. assignees and successors to the parties. 43. BROKERAGE: Landlord and Tenant shall each pay to Broker(s) the fee agreed to, if any, in a separate written agreement. Neither Tenant nor Landlord has utilized the services of, or for any other reason owes compensation to, a licensed real estate broker (individual or corporate), agent, finder, or other entity, other than as named in this agreement, in connection with any act relating to the Premises, including, but not limited to, inquiries, introductions, consultations, and negotiations leading to this agreement. Tenant and Landlord each agree to indemnify, defend and hold harmless the other, and the Brokers specified herein, and their agents, from and against any costs, expenses, or liability for compensation claimed inconsistent with the warranty and representatirn in this paragraph 43. 44. AGENCY CONFIRMATION: The following agency relationships are hereby confirmed for this transaction: ~-~sting Agent:-----~~--------· ____ (Print Firm Name) is the agent of (check one): D the Landlord exclusively; or LI both the Tenant and Landlord. Selling Agent: _____ .,...... ___________ ~ ___ (Print Firm Name) (if not same as Listing Agent) is the agent of (check one): D the Tenant exclusively; or LJ the Landlord exclusively; or , _ _J both the Tenant and Landlord. Real Estate Brokers are not parties to the agreement between Tenant and Landlord. Landloro·, 1nura1, L 1[) · f I CL REVISED 12/15 (PAGE 5 OF 6) Tenant's Initials COMMERCIAL LEASE AGREEMENT (CL PAGE 5 OF 6) Produced wilh Lone Wolf Transacl•ons (z,pForm Ed1l1on) 231 Shearson Cr Cambridge OnIar,o Canada N1T 1J5 www lwolf com 3150 f: Oli1e ,\,c 1~.,,;..,a.,-.;. ,,..,.::,.11.,.-...n Premises: 3150 East Olive Avenue Fresno CA 93705 Date November 20, 2020 Landlord and Tenant acknowledge and agree that Brokers: (i) do not guarantee the condition of the Premises; (ii) cannot verify representations made by others; (iii) will not verify zoning and land use restrictions; (iv) cannot provide legal or tax advice; (v) will not provide other advice or information that exceeds the knowledge, education or experience required to obtain a real estate license. Furthermore, if Brokers are not also acting as Landlord in this agreement, Brokers: (vi) do not decide what rental rate a Tenant should pay or Landlord should accept; and (vii) do not decide upon the length or other terms of tenancy. Landlord and Tenant agree that they will seek legal, tax, insurance, and other desired assistance from appropriate professionals. Tenant C. () Date __________ _ Sweet Flower Fresno 2 LLC (Print name) Address _______________________ City ______________ State ____ Zip _____ _ Tenant Date __________ _ (Print name) Address _______________________ City ______________ State ____ Zip _____ _ 0 GUARANTEE: In consideration of the execution of this Agreement by and between Landlord and Tenant and for valuable consideration, receipt of which is hereby acknowledged, the undersigned ("Guarantor") does hereby: (i) guarantee unconditionally to Landlord and Landlord's agents, successors and assigns, the prompt payment of Rent or other sums that become due pursuant to this Agreement, induding any and all court costs and attorney fees included in enforcing the Agreement; (ii) consent to any changes, modifications or alterations of any term in this Agreement agreed to by Landlord and Tenant; and (iii) waive any right to require Landlord and/or Landlord's agents to proceed against Tenant for any default occurring under this Agreement before seeking to enforce this Guarantee. Guarantor (Print Name)------------------------------------------ Guarantor __________________________________ Date __________ _ Address ____________________ City ______________ State ____ Zip ____ _ Telephone ___________ Fax ___________ E-mail ____________________ _ Landlord agree · e term a!}. Landlord _..::;..,.c:::::__..,,,..,~----=.,-,::__ ___ ._--....,·-_···...,-·.,..,·-,;.-='-:,,":~::"':'----......,'-:::j_· _______ Date _ _.,._l _2-_·_'f_-_Z._et_l-_v_ r~me'nff VRG Investment Trust Address City State Zip Landlord' ¥ ef C,t_ '· ·· ' Date __ 1 _7_· _f_•_l-_"'_:z._0 __ -this agreement) Jagat Singh Badhesha Address l-~{./£./,~-----City State zip Agency relationships are confirmed as above. Real estate brokers who are net also Landlord in this agreement are not a party to the agreement between Landlord and Tenant. Real Estate Broker (Leasing Firm) ______________________________ _ DRE Lie.# By (Agent) ______________________ _ DRE Lie.# Date Address _______________________ _ City State Zip Telephone ___________ Fax __________ _ E-mail Real Estate Broker (Listing Firm) _____________________________ _ DRE Lie.# By (Agent) _____________________ _ DRE Lie.# Date Address _______________________ _ City State Zip Telephone ___________ Fax __________ _ E-mail © 2015, California Association of REAL TORS®, Inc. United States copyright law (Title 17 u S Code) forbids the unaulhonzed distribution, display and reproduction of this form, or any portion thereof, by photocopy machine or any other means, including facsimile or computerized formats THIS FORM HAS BEEN APPROVED BY THE CALIFORNIA ASSOCIATION OF REAL TORS® (CAR) NO REPRESENTATION IS MADE AS TO THE LEGAL VALIDITY OR ACCURACY OF ANY PROVISION IN ANY SPECIFIC TRANSACTION A REAL ESTAT': RROKER IS THE PERSON QUALIFIED TO ADVISE ON REAL ESTATE TRANSACTIONS. IF YOU DESIRE LEGAL OR TAX ADVICE, CONSULT AN /\PPROPRIATE PROFESSIONAL L I REAL ESTATE BUSINESS SERVICES, LLC. 1-··7 Published and Distributed by: • _i a subsidiary of the California Association of REAL TORS® ~-J_ 525 South Virgil Avenue. Los Angeles, California 90020 CL REVISED 12/15 (PAGE 6 OF 6) COMMERCIAL LEASE AGREEMENT (CL PAGE 6 OF 6) Produced with Lone Wolf Transac11ons (z1pForni Ec1t11on) 231 Shcarso~ Cr Cambndge. Ontario Canc1da N 1 T 1 JS www lwolf com ~ tQ•.;A.,H;,,..n.,0,,:. o...,.o,rn,...w -.. & AS OCI T lON ... OF RE LT CAL I FO R I A ADDENDUM (C A.R. Form ADM , Rovlsod 12115) No. Text Overflo w 1 The f ollow1ng terms and cond1llons are hereby incorporated 1n and made a part or the : 0 Purcha se Agreem e nt, [l R eside n tial L ease or Month -to-Month Rental Agreement, 0 T ra n sfer Disclosure S ta temen t (No te. An amendment to the TDS may g ive th e Buyer a rig ht lo rescind }, ~ Other Commercial Lease Agreement ___________________________ • da ted No vember 20, 2020 , on property known as 3150 E Olive Ave Fresno CA 93702-1021 ,n \vhich Sweet Flower Fresno 2, LLC 1s referred to as (·Buyer/Te r1 anr) and -------VR_G_l_n _v _es_t_m..::e:.:.:n~t:.:::T:.!..ru.:...· s~t~.:..:J~a...:.g...:.a..:::t .:::.S:.!.in~g..:::h.LB=.ad::::.h_es_h_a _______ ---'"'.i~s referred to a s ("Selle r/Landlo rd"). Page 1 ltem 3 (A.5) Rent is per month, cancel/able anytln1e In th e first 12 months for any reason by either p a rty_ 10 year non c ancelable lease to follow w /annual rent increases of 3 % with one 5 year extension. Lease ag_reeme n t i s triple n et "NNN" during entire lease agreement Page 2 Item 15-The retail sale a nd de l ivery of adult•use recreational and medical cannabis pursuant to applicable CA Sta te Law and City of Fresno ordinances, including FMC Section 9-3318(b). The foreg oing terms and co n ditio ns are hereby agreed lo, and the unders i gned acknowledge rece ipt of a copy of this document. Date {,Z, l( 2 ~'J-0 (13uyer/ I enant Seller/La nd rd Swee t Flower Fresno 2, LL C nt T Buyer ff en ant Jaga t Singh Badhesha C 1986-2015 , California AssooatJon of REALTORS®, In c Un 1te-d States copyng tll la-..., (TiUe 17 U S Code) forbids the unau th orized d1stnhu llon, display and reproducbon o f this fo rm. or any portJon the r eo f, by photocopy machi ne or any othe r means . 1nciud1ng racs1m 1le or computer i zed ronnals TH IS FORM HAS BEEN APPROVED 8Y THE CALIFOR NIA ASSOCIATION OF REALTORS® (CA R) NO REPRESENTATION IS ~v\DE AS TO THE LEGAL VALIDITY OR AC CURACY OF A NY PROVIS ION IN AN Y SPECIFIC TRA NSACTION . A REAL ESTATE BROKER IS TH E PERSON QUALIFIED TO ADVISE ON REAL ESTATE TRANSACTION S IF YOU DES IRE LEG AL OR TAX ADVICC . CO NSUL T A N AP P RO PR IATE PROFESS IONAL This Conn 1s made ava il able to fea t estate proress1ona1s l hr ough an ag r eemen t with or purchase from the Cahtor nta A ssooJtton or REAL TORS® It 1s not intend ed to 1dent1fy the user as a REALTOR® REALTOR® Is a reg istered colfec11ve me mbersh ip mark ,vh tch may be used only by members o r Ih a NA TIONAL ASSOCIATIO N OF REAL TOR S® who subscnbe lo its Code or Eth ics L Published and Dts lnbu l ed by L REAL ESTATE BUSINESS SERVICES . LLC a subSJdiary of the Ca li forn ia Assoc1at1on of REAL TORS® ' 525 South Virg il Avenue . Los Angeles Cahforn1a 90020 ADM RE VISED 12115 (PAGE 1 OF 1) A DDE NDUM ADM PAGE 1 OF 1· r r o n Kc} Rc,1 1 ~u1c. 6 iS \\ ~·t C"t \1 c S ir I 01 rrl"\11 0 < \ ?J i 11 P hono l~S9 )410-80.lS Fax f li r t\\) btn~1 P101.1~11d w :.n Lor.e "lolf 1 r..., S:lCll\'lflS (Z1pf otm Ed.tion) 231 Sooarson Cr Cambridge On1an o Ca n ac,o. Nll \J S WW\Y ~ .. oil aim November 30, 2020 City of Fresno 2600 Fresno Street Fresno, CA 93721 City of Fresno, Per Fresno Municipal Code 9-3316(c), Sweet Flower Fresno 2 LLC will employ one supervisor and one employee who have completed Cal/OSHA industry training by an authorized training provider, within one year of receiving a commercial cannabis business (CCB) permit. The Store Manager and, at minimum, one Assistant Manager at Sweet Flower Fresno 2 LLC will hold a Cal/OSHA certification after completion of the 30-hour general industry outreach training course. We look forward to serving the City of Fresno and working with the city on all approvals for our proposed project. Thank you, Timothy Dodd CEO, Sweet Flower Fresno 2 LLC tim@sweetflower.com California Secretary of State Electronic Filing FILED Secretary of State State of California LLC Registration -Articles of Organization E ntity Name: Sweet Flower Fre sno 2 , LLC Entity (Fi le) Number: 20203 1810626 Fi le Date: 1 11/10/2 020 Entity Type: Domestic LLC Jurisd iction : California Detailed Filing Informa ti on 1. Entity Name: 2 . BusinessAddresses: a . Initial Street Address of Designated Office in California : b . Initi al Mailing Address : 3 . Agent for Service of Process: 4 . Management Structure: 5. Pu rpose Statement: E lectronic S ignature : Sweet Flow er Fresno 2, LLC 10000 Cu lver Bou levard Cu lver City, California 90232 United Stat es 10000 Cu lver Bou levard Cul ver City, Californ ia 90 232 United States CORPORATION SERVICE COMPANY WHICH W ILL DO BUSIN ESS IN CALI FORNIA AS CSC • LAWYERS INCORPORATING SERVICE (C1592199) More than O ne Manager The purp ose of the limited li abil ity company is to engage in any lawful act or activity fo r w hich a lim ited liab ility company may be organized under the Califo rn ia Revised Un iform Limited Liabil ity Company Act. The organ izer affirms the informati on contained her ein is true and correct. OrQanizer: Adam Morales Use bizfile.sos.ca.gov for onli n e fili ngs, sea·rch es, busin e ss records, and resour c es. OPERATING AGREEMENT SWEET FLOWER FRESNO 2, LLC, a California Limited Liability Company THE INTERESTS REPRESENTED BY THIS AGREEMENT HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR UNDER THE SECURITIES ACTS OR LAWS OF ANY STATE IN RELIANCE UPON EXEMPTIONS UNDER THOSE ACTS AND LAWS. THE SALE OR OTHER DISPOSITION OF SUCH INTERESTS IS RESTRICTED AS STATED IN THIS AGREEMENT, AND IN ANY EVENT IS PROHIBITED UNLESS THE COMPANY RECEIVES AN OPINION OF COUNSEL SATISFACTORY TO IT AND ITS COUNSEL THAT SUCH SALE OR OTHER DISPOSITION CAN BE MADE WITHOUT REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND ANY APPLICABLE STATE SECURITIES ACTS AND LAWS. BY ACQUIRING INTERESTS REPRESENTED BY THIS AGREEMENT, EACH MEMBER REPRESENTS THAT IT WILL NOT SELL OR OTHERWISE DISPOSE OF ITS INTERESTS WITHOUT COMPLIANCE WITH THE PROVISIONS OF THIS AGREEMENT AND REGISTRATION OR OTHER COMPLIANCE WITH THE AFORESAID ACTS AND LAWS AND THE RULES AND REGULATIONS ISSUED THEREUNDER. DocuSign Envelope ID: FF1EA7DE-35E9-4B22-9425-09CDFE31B2C6 2 OPERATING AGREEMENT This Operating Agreement (the “Agreement”) of Sweet Flower Fresno 2, LLC, a California limited liability company (the “Company”), is effective as of November 10, 2020 (the “Effective Date”), is entered into by and between the Company and the members set forth on Schedule A hereto (each a “Member” of the Company and together the “Members”). WHEREAS, the Company was formed as a limited liability company under the name “Sweet Flower Fresno 2, LLC” on November 10, 2020 by the filing of Articles of Organization (the “Articles”) with the Secretary of State of the State of California on pursuant to and in accordance with the California Revised Uniform Limited Liability Company Act, Title 2.6, §§ 17701, et seq., as amended from time to time (the “Act”); and WHEREAS, the Members agree that the membership in and management of the Company shall be governed by the terms set forth herein. NOW, THEREFORE, the Members and the Company agree as follows: ARTICLE I FORMATION OF COMPANY Section 1.01 Name. The name of the Company is and shall be Sweet Flower Fresno 2, LLC. The Company may do business under a fictitious business name as the Manager may from time to time determine and by causing the Company to file authorization of the same in the appropriate jurisdictions. Section 1.02 Purpose. The purpose of the Company is to engage in any lawful act or activity for which limited liability companies may be formed under the Act and to engage in any and all activities necessary or incidental thereto. The rights, powers, duties, obligations and liabilities of a Member shall be determined pursuant to the Act and this Agreement. To the extent that the rights, powers, duties, obligations and liabilities of a Member are different by reason of any provision of this Agreement than they would be under the Act in the absence of such provision, this Agreement shall, to the extent permitted by the Act, control. Section 1.03 Principal Place of Business. The Company’s principal place of business shall be at such location as the Manager may designate from time to time. Section 1.04 Registered Office and Registered Agent. The registered agent of the Company for service of process in the State of California and the registered office of the Company in the State of California shall be that person and location reflected in the Articles. The Company may change the registered agent or office at any time in the manner provided by the Act or applicable law. Section 1.05 Term. The term of the Company commenced on the date the Articles were filed with the Secretary of State and shall continue in existence perpetually until the Company is dissolved in accordance with the provisions of this Agreement. Section 1.06 Defects as to Formalities. A failure to observe any formalities or DocuSign Envelope ID: FF1EA7DE-35E9-4B22-9425-09CDFE31B2C6 3 requirements of this Agreement, the Articles or the Act shall not be grounds for imposing personal liability on a Member for the liabilities of the Company. No annual meeting shall be required to be held. ARTICLE II BUSINESS OF THE COMPANY Section 2.01 Company Business. The business of the Company shall be to carry on any lawful business or activity which may be conducted by a limited liability company organized under the Act. ARTICLE III MEMBER, CONTRIBUTION, UNITS AND MANAGEMENT Section 3.01 Additional Members. Each Member owns the units and percentage of interests in the Company as set forth in Schedule A. Prior to the admission of any additional members to the Company, the Members shall amend this Agreement in accordance with Section 8.02 to make such changes as the Members shall determine to reflect the fact that the Company shall have such additional members. Each additional member shall execute and deliver a supplement or counterpart to this Agreement, as necessary. Section 3.02 Units and Certificates. The membership interests of the Members shall be represented by units representing a fractional part of the membership interests of the Members (the “Units”). The Manager (as defined below) shall maintain a schedule identifying the Members and the number of Units held by the Members and the Members’ initial capital contributions (the “Members Schedule”) and shall update the Members Schedule upon the issuance or transfer of any Units to any new or existing member, as applicable. A copy of the Members Schedule as of the execution of this Agreement is attached hereto as Schedule A. The Company will not issue any certificates to evidence ownership of the Units. Section 3.03 Capital Contribution. The Members have or hereby agree to contribute to the Company such cash, property, or services (the “Capital Contribution(s)”) as set forth on the Members Schedule. No interest shall accrue on any Capital Contribution, and the Members shall not have the right to withdraw or be repaid any Capital Contribution except as provided in this Agreement. The Members may be requested by the Company, in its sole discretion, to make additional Capital Contributions, but, notwithstanding anything to the contrary in this Agreement, no Member shall have no obligation to do so. Section 3.04 Designation of Manager. The management of the Company shall be vested in a manager (the “Manager”). The Manager need not be a Member of the Company. The number of Managers shall be initially set at one (1). Timothy Dodd shall have the right to appoint the Manager, and Mr. Dodd hereby appoints himself to serve as the initial Manager. Section 3.05 Management. The Manager shall have exclusive and complete authority and discretion to manage the operations and affairs of the Company and to make all decisions regarding the business of the Company. Actions by the Manager shall require the unanimous consent of the Manager. Persons dealing with the Company are entitled to rely conclusively on the power and authority of the Manager as set forth in this Agreement. The Manager shall have DocuSign Envelope ID: FF1EA7DE-35E9-4B22-9425-09CDFE31B2C6 4 all rights and powers of a manager under the Act, and shall have such authority, rights and powers in the management of the Company to do any and all other acts and things necessary, proper, convenient or advisable to effectuate the purposes of this Agreement. The Members shall only participate in the management of the Company where permitted or required by this Agreement or the Act. Section 3.06 Officers. The Manager may, from time to time, designate one (1) or more officers with such titles as may be designated by the Manager to act in the name of the Company with such authority as may be delegated to such officers by the Manager (each such designated person, an “Officer”). Any such Officer shall act pursuant to authority delegated to such Officer until that Officer is removed by the Manager. Any action taken by the Officer shall constitute the act of and serve to bind the Company. Persons dealing with the Company are entitled to rely conclusively on the power and authority of any Officer set forth in this Agreement and any instrument designating such Officer and the authority delegated to him or her. Section 3.07 Member Liability and Indemnification. The Members shall not be required to make any additional Capital Contributions to the Company, and the Members shall not be liable for the debts, liabilities, contracts, or any other obligations of the Company, nor shall the Members be required to lend any funds to the Company or to repay to the Company, any Member, or any creditor of the Company any portion or all of any deficit balance in a Member’s capital account. Any provision of this Agreement to the contrary notwithstanding, and to the extent permitted by applicable law, the liability of the Members for the losses, debts and obligations of the Company shall be limited to the amount, if any, of its share of any undistributed cash from operations or cash available upon the dissolution of the Company. The Company shall, to the extent permitted by law, protect and hold the Members harmless (to the extent of the Company’s assets) from and against all claims, demands and causes of action of any kind or character, including the cost of defense thereof, arising from the performance or exercise of any of the duties, obligations, powers or authorities possessed by, granted or delegated to the Members under this Agreement. Section 3.08 Indemnification of Manager. The Company shall, to the extent permitted by law, protect and hold the Manager, its partners, directors, officers, affiliates, agents and employees, harmless (to the extent of the Company’s assets) from and against all claims, demands and causes of action of any kind or character, including the cost of defense thereof, arising from the performance or exercise of any of the duties, obligations, powers or authorities possessed by, granted or delegated to the Manager under this Agreement. There is no obligation on the part of any Member to contribute capital to the Company in order to fund any such indemnification obligation. Section 3.09 Appointment of New Manager. Upon the death, removal or resignation of the Manager, the Member who appointed said deceased, removed or resigned Manager, as the case may be, shall appoint a new Manager. In the event the appointing Member is unable to appoint a new Manager due to disability, death or otherwise, the Members may appoint a replacement Manager with the vote of a majority of the Units, which such Manager shall serve until such time, if any, as the appointing Member is once again able to designate an appointee. Section 3.10 Compensation. The Manager shall be reimbursed for all reasonable DocuSign Envelope ID: FF1EA7DE-35E9-4B22-9425-09CDFE31B2C6 5 expenses incurred on behalf of the Company and shall be entitled to reasonable compensation for time spent managing the Company, in an amount to be determined from time to time by the Members. Section 3.11 Duty of Loyalty. The Members and Manager may have and engage in business and investment interests and activities other than the Company and need not account to the Company for profits or remuneration gained thereby. The Members and Manager may enter into transactions considered to be competitive with or similar to those of the Company, or a business opportunity beneficial to the Company, and the Company waives any right or claim to participate therein. The Members have no duty to account to the Company or to hold as trustee for the Company any property, profit or benefit derived by the Members in the formation, conduct or winding-up of the Company or from the use or appropriation of any Company property. Section 3.12 Other Self Interest. A Member does not violate a duty or obligation to the Company merely because such Member’s conduct furthers such Member’s own interests. A Member may lend money to and transact other business with the Company, and the rights and obligations of such Member in such transactions shall be the same as those of a person who is not a member. No transactions with the Company shall be voidable solely because a Member has a direct or indirect interest in the transaction. ARTICLE IV TAXES, ACCOUNTING AND RECORDS Section 4.01 Elections. The Members intend that the Company shall be treated as a partnership for federal and, if applicable, state and local income tax purposes, and, to the extent permissible, the Company shall elect to be treated as a partnership for such purposes. The Company and each Member shall file all tax returns and shall otherwise take all tax and financial reporting positions in a manner consistent with such treatment and no Member shall take any action inconsistent with such treatment. Section 4.02 Allocations. Except as may otherwise be provided under the Internal Revenue Code of 1986, as amended (the “Code”), the Company’s profit and losses for each fiscal year will be allocated to each Member’s capital account as set forth on Schedule B hereto. Section 4.03 Income and Deduction. All items of income, gain, loss, deduction and credit of the Company (including, without limitation, items not subject to federal or state income tax) shall be treated for federal and all relevant state income tax purposes as items of income, gain, loss, deduction and credit of the Member. Section 4.04 Maintenance of Capital Accounts. The Company shall establish and maintain for each Member a separate capital account (a “Capital Account”) on its books and records in accordance with this Section 4.04. Each Capital Account shall be established and maintained in accordance with the following provisions: (a) Each Member’s Capital Account shall be increased by the amount of: (i) Such Member’s Capital Contributions, including any initial Capital Contributions; DocuSign Envelope ID: FF1EA7DE-35E9-4B22-9425-09CDFE31B2C6 6 (ii) Any net income or other item of income or gain allocated to such Member pursuant to Section 4.02; and (iii) Any liabilities of the Company that are assumed by such Member subject to and in accordance with the provisions of Treasury Regulation §1.704- 1(b)(2)(iv)(c). (b) Each Member’s Capital Account shall be decreased by: (i) The cash amount distributed to such Member; (ii) The fair market value of any property of the Company so distributed to such Member, net of liabilities secured by the distributed property that the distributee Member is considered to assume or to be subject to under Code §752; (iii) The amount of any net loss or other item of loss or deduction allocated to such Member pursuant to Section 4.02; and (iv) The Member’s share of any expenditures of the Company described in the Code §705(a)(2)(B) or that are treated as Code §705(a)(2)(B) expenditures under Treasury Regulation §1.704-1(b)(2)(iv)(i) (including syndication expenses and losses nondeductible under the Code §267(a)(I) or §707(b)). (c) The principal amount of a promissory note that is not readily traded on an established securities market and that is contributed to the Company by the maker of the note shall not be included in the Capital Account of any person until the Company makes a taxable disposition of the note or until (and to the extent) principal payments are made on the note, all in accordance with Treasury Regulation §1.704-1(b)(2)(iv)(d)(2). (d) Each Member’s Capital Account shall be increased or decreased as necessary to reflect a revaluation of the Company’s property assets in accordance with the requirements of Treasury Regulation §§1.704-1(b)(2)(iv)(f) and 1.704-1(b)(2)(iv)(g), including the special rules under Treasury Regulation §1.701-1(b)(4), as applicable. The provisions of this Agreement respecting the maintenance of Capital Accounts are intended to comply with Treasury Regulation §1.704-1(b) and shall be interpreted and applied in a manner consistent with such regulations. Section 4.05 Taxes of Taxing Jurisdictions. To the extent that the laws of any taxing jurisdiction require, the Manager will prepare and each Member will execute and submit timely income tax payments to the taxing jurisdiction. Each Member accepts personal jurisdiction of the taxing jurisdiction with regard to the collection of income taxes attributable to the Member’s income, and interest and penalties assessed on such income. If a Member fails to timely submit required income tax payments to the taxing jurisdiction, the Company may withhold and pay over to such taxing jurisdiction the amount of tax, penalty and interest determined under the laws of the taxing jurisdiction with respect to such income. Any such payments with respect to the income of any Member shall be treated as a distribution for purposes of Article V. Section 4.06 Succession Upon Transfer. In the event that any Units are transferred in DocuSign Envelope ID: FF1EA7DE-35E9-4B22-9425-09CDFE31B2C6 7 accordance with the terms of this Agreement, the transferee shall succeed to the Capital Account of the transferor to the extent it relates to the transferred Units and shall receive allocations and distributions pursuant to this Agreement in respect of such Units. Section 4.07 Negative Capital Accounts. In the event that any Member shall have a deficit balance in his, her or its Capital Account, such Member shall have no obligation, during the term of the Company or upon dissolution or liquidation thereof, to restore such negative balance or make any Capital Contributions to the Company by reason thereof, except as may be required by this Agreement or by applicable law. Section 4.08 Books and Records. The Manager shall keep such books and records relating to the operation of the Company as are appropriate and adequate for the Company’s business and carrying out this agreement. Section 4.09 Tax Matters Representative. The Manager shall designate a Tax Matters Representative. Notwithstanding the foregoing, (a) the Tax Matters Representative will give the Members reasonable notice of all telephonic or other meetings with the Internal Revenue Service and (b) in any proceeding the Tax Matters Representative shall furnish to the Members a copy of all notices or other written communications received by the Tax Matter Representative from the Internal Revenue Service (except such notices or communications that are sent directly to all of the Members. “Tax Matters Representative” shall mean, as defined in the Code §6223, the “partnership representative,” and shall have all the powers and obligations of a partnership representative pursuant to the Code. ARTICLE V DISTRIBUTIONS Section 5.01 Distributions. The Company may make distributions at such times and in such amounts as determined by the Manager. ARTICLE VI DISPOSITION OF MEMBERSHIP INTEREST AND ADMISSION OF ASSIGNEES AND ADDITIONAL MEMBERS Section 6.01 Disposition. A Member’s membership interest is transferable either voluntarily or by operation of law only with the consent of the Manager. If the Manager consents, a Member may dispose of all or a portion of such Member’s membership interest. Upon the disposition of a portion or all of a Member’s membership interest, the transferee shall be admitted as a substitute member as to the transferred interest upon the execution of such documents as may be required by the Manager, including a joinder to this Agreement. Upon the transfer of a Member’s entire membership interest (other than a temporary transfer or transfer as a pledge or security interest), such Member shall cease to be a Member of the Company and shall have no further rights or obligations under this Agreement, except that such Member shall have the right to such information as may be necessary for the computation of such Member’s tax liability. Section 6.02 Death. Notwithstanding Section 6.01, the death of any Member shall not cause the dissolution of the Company. In such event the Company and its business shall be continued by the remaining Member or Members and the Units owned by the deceased Member DocuSign Envelope ID: FF1EA7DE-35E9-4B22-9425-09CDFE31B2C6 8 shall automatically be Transferred to such Member’s heirs; provided, however, that within a reasonable time after such Transfer, the applicable heirs shall sign a written undertaking substantially in the form of a joinder agreement. ARTICLE VII DISSOLUTION AND WINDING UP Section 7.01 Dissolution and Winding-up. (a) Dissolution. The Company shall dissolve, and its affairs shall be wound up upon the first occurrence of the following: (i) the written consent of the Member, (ii) the entry of a decree of judicial dissolution, or (iii) any other event or circumstance giving rise to the dissolution of the Company under the Act, unless the Company’s existence is continued pursuant to the Act. (b) Winding up and Liquidation. In the event of dissolution, the Company shall conduct only such activities as are necessary to wind up its affairs (including the sale of the assets of the Company in an orderly manner), and the assets of the Company shall be applied as follows: (i) first, to creditors, to the extent otherwise permitted by law, in satisfaction of the liabilities of the Company (whether by payment or the making of reasonable provision for payment thereof); and (ii) second, to the Members. During the period of the winding up of the affairs of the Company, the rights and obligations of the Members under this Agreement shall continue. Upon the completion of the winding up of the Company, the Member shall file Certificate of Dissolution in accordance with the Act. ARTICLE VIII MISCELLANEOUS PROVISIONS Section 8.01 Governing Law. This Agreement shall be construed and enforced in accordance with the laws of the State of California. Section 8.02 Amendments. This Agreement may be amended or modified from time to time only by a written instrument adopted by Members holding two-thirds of the Units; provided, however, that amendments to the Members Schedule (attached hereto as Schedule A) relating to any new issuance, redemption, repurchase or transfer of Units done or made in accordance with this Agreement may be made by the Manager without the consent of or execution by the Members. Section 8.03 Entire Agreement. This Agreement represents the entire agreement between each Member and the Company. Section 8.04 Severability. In the event that any provision of this Agreement is declared invalid, illegal or unenforceable, such provision shall survive to the extent it is not so declared, and the validity, legality, and enforceability of the other provisions hereof shall not in any way be affected or impaired thereby, unless such action would substantially impair the benefits to any party of the remaining provisions of this Agreement. Section 8.05 Rights of Creditors and Third Parties Under Operating Agreement. This Agreement is entered into between the Company and the Members for the exclusive benefit DocuSign Envelope ID: FF1EA7DE-35E9-4B22-9425-09CDFE31B2C6 9 of the Company, its Members, and their successors and assignees. This Agreement is expressly not intended for the benefit of any creditor of the Company or any other person. Except and only to the extent provided by applicable statute, no such creditor or third party shall have any rights under this Agreement or any agreement between the Company and the Members with respect to any capital contribution or otherwise. [Signature Page to Follow] DocuSign Envelope ID: FF1EA7DE-35E9-4B22-9425-09CDFE31B2C6 [Signature Page to Operating Agreement] 4834-1594-6159, v. 5 IN WITNESS WHEREOF, the undersigned have executed this Agreement to be effective as of the date first written above. COMPANY: SWEET FLOWER FRESNO 2, LLC By: Name: Timothy Dodd Title: Manager MEMBERS: By: Name: Timothy Dodd Title: Member By: Name: Michael Thomson Title: Member DocuSign Envelope ID: FF1EA7DE-35E9-4B22-9425-09CDFE31B2C6 QDocuSigned by: 11~b~ Dbtltl 6D249926998449B ... SCHEDULE A MEMBERS SCHEDULE Member Name Units Initial Capital Contribution Timothy Dodd 500 $ Michael Thomson 500 $ DocuSign Envelope ID: FF1EA7DE-35E9-4B22-9425-09CDFE31B2C6 SCHEDULE B PROFIT AND LOSS ALLOCATION SCHEDULE Member Name Profit Allocation Loss Allocation Timothy Dodd 50% 50% Michael Thomson 50% 50% DocuSign Envelope ID: FF1EA7DE-35E9-4B22-9425-09CDFE31B2C6 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 Timothy Dodd Sweet Flower Fresno 1, LLC Dear Applicant: SUBJECT: ZONING INQUIRY NUMBER P20-04270 REQUESTING INFORMATION REGARDING CANNABIS RETAIL FOR PROPERTY LOCATED AT 3150 EAST OLIVE AVENUE (All Suite Numbers) (APN 454-021-32) 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 CG, which is one of the allowable zone districts for cannabis retail businesses. Development standards of the CG zone district are available in Sections 15-1203, 15-1204, and 15-1205 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 P20-04270 3150 East Olive Avenue (All Suite Numbers) 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 7. There are currently no cannabis retail businesses located in Council District 7. 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 ~AASTER Frtsno's A-'tnltdAppl,c•don Syst"" to Tl><t ti'~ ~ \. •·v::-:: Welcome to the City of Fresno ! 311 Call Center-311 or 559.621-2489 Planning 559.621-82n Building And Safety 559.621-8084 Announcements Logged in as:Timothy Dodd Collections (0) ~ Cart (0) Reports (3) • Logout Home Building Publi c Work s/Utilities Create an Application Obtain a Fee Esti mate Recor d P20-04270: Zoning Inquiry Recor d Status: Complete Record Info "' Project Location 3150 E OLIVE AVE 101 FRESNO CA 93702 Record Details Applicant: Payments " I Search.. Planning/Land Divisi on Fire Parks Search Applications Project Description: Add to cart Add to collection Timothy Dodd Sweet Flower Fresno 2, LLC (Cannabis Retail) Sweet Flower Fresno 2, LLC 4210 Old Topanga Canyon Rd. Calabasas, CA. 91302 United States Primary Phone:3109952299 tim@sweetftower.com Owner: GONZALEZ VICTOR RENEE TRS BADHESHA JAGAT 15453 W M IDDLETON KERMAN CA 93630 v More Details (3 Related Contacts Business Owner information Timothy Dodd Sweet Flower Fresno 2. LLC E-mail: tim@sweetflower.com (3 Application Information GENERAL INFORMATION Exlstln9 Use on the site: Zoning Inquiry Letter tor Cannabis Retail. This application is tor the entire building at 3150 E Olive St, Including all suites. Currently vacant, previously food market, laundromat. gym and offices. Confirmation of zoning: Yes Yes Yes Vacant Conformity of Use to the Fresno Municipal Code Zoning Ordinance: Ability to Rebuild the Present Use on the Site: Is the building or site occupied or vaant?: If add'l/specific info Is requested beyond the Info checked above, 1tate the Information requested: Zoning Inquiry Letter from the Planning and Development Department to ensure clearance ot all cannabis retail sensitive uses . 8 Parcel Information Parcel Number: 45402132 MAI ISL.flaB~ LL-C ,:Oiloo'OULVERBLVD CULVEfl'CIW, CA.902<32 sweet Flower 10000 Culver Bl'Vd . LDW£R Culver City, CA 90232 g•TE 'Q •Ct'"~ ~ u,&,'1H",Ja'l22 ~ 1$ DOl.l.ARs lli C..i +-~ of-fre~no o~~ at=~ ~-f/if t'Qld c.,t1 f\ttttaJif 0-t-t~c-tt ff Vtfl~Cll~j ~ C)-ltfJ;Jlt\"'f . Z goo frv110 s11u-r: , f1ti110, cit 1~7ZJ I\J JI C .:r • . . 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You ma y a l s o v1 sn W'fltl .U5CS.COII = ,r ack li,g or ca ll :-::::::.: :::-1 . t'l'eVI ~w vr:,.r n a il 1r aC1C vour t'ae-~agas $i a, II) tor Fi<ff I WiiW . , nrorn,,ooa_, , vl\rv . coil Ail sai es finai on St <i!l:0'1 and pos t age . 1«nur,a,; "fOt" auaranteec S61"Vl = only , 1nanK vou riir 1/0!r w sina38. 18 11 U$oPC?!4.l_•-~ "° w, .t?"-•~·i;;~~ or scan Jt'tn vour ~le de~( "' Rece l ot I : 840 -59070014 -t -2$0S743-2 Attention: Jennifer Ruiz City of Fresno City Manager's Office Office of Cannabis Oversight ?600 Fresno Street, Room 2064 Fresno. California 93 721 4/13/2021 VIA US. MAIL Re: Support of Sweet Flower for Retail Cannabis Licenses in City of Fresno Dear Jennifer, I am writing to express my support for Sweet Flower Fresno as a candidate for two (2) storefront retail cannabis licenses in Fresno. Sweet Flower's proposed locations are 4798 Marty Avenue (Marty & Shaw-Council District One) and the other on 3150 Olive Avenue (Olive and First- Council District Seven). I am the current Chief Executive Officer of the Fresno Metro Black Chamber of Commerce. I became familiar with Sweet Flower and their CEO, Timothy Dodd, as they reached out to stakeholders in our community, including the Fresno Metro Black Chamber of Commerce, in an effort to understand our concerns and listen to our thoughts on legal cannabis in Fresno. We have enjoyed getting to know Timothy Dodd and Sweet Flower and a result of those discussions, we strongly believe that Sweet Flower is the right choice for Fresno. In light of our discussions with Sweet Flower, and as an indication of Sweet Flower's support for the greater Fresno community, we have entered into a Memorandum of Understanding ("MOU") in which Sweet Flower has committed to five (5) crucial initiatives that are important to the Fresno Metro Black Chamber of Commerce ("FMBCC": 1) Create and operate a hiring program for individuals in which Sweet Flower will hire a significant percentage of employees from within the Black Community at both of Sweet Flower's proposed cannabis retail locations in City Council District One and City Council District Seven; 2) Create. sponsor, and host Expungement Clinics with the FMBCC in Fresno; 3) Provide programs for residents in the local Black community to obtain the skills, training and experience needed to work in the local legal cannabis industry; 4) Create business partnerships between Sweet Flower, the FMBCC's Cannabis testing lab and local as well as state~wide Cannabis producers, manufacturers, and distributors; and 5) Sweet Flower shall also make significant contributions to the FMBCC, its programs and Fresno Metro Black Chamber Foundation in Fresno. Sweet Flower leads by example , demonstrating their commitment to Fresno by joining and contributing to civic organizations and nonprofits such as the Poverello House, Community Hospital's Cancer Center. the Fresno Metro Black Chamber of Commerce, and the Fresno Chamber of Commerce. Sweet Flower are on the ground in Fresno, hosting events and talking to the Fresno community, engaging with and visiting neighborhoods and neighboring businesses. Their CEO, Timothy Dodd, has personally led this effort, building consensus and support at a grass roots level, working with local leaders in the Fresno business, residential and minority communities. These proactive, meaningful actions, in addition to Sweet Flower's proven track record of operational excellence, has garnered my full support. We believe Sweet Flower would be an ideal partner for Fresno's community, residents, businesses, and other cannabis operators. Sweet Flower is a member of the Fresno Metro Black Chamber of Commerce and Sweet Flower has already demonstrated that they are a great community partner in Fresno. After meeting with Sweet Flower's CEO, Timothy Dodd, I decided to become a founding member of Sweet Flower Fresno's Community Advisory Committee. The purpose of this committee is to advise on community programs, communication, and allocation of funds to local non-profits and community service projects. After personally vetting Sweet Flower and seeing their dedication to community first hand, I am excited by the prospect of working with Sweet Flower to enrich Fresno through Sweet Flower's commitment to local hiring initiatives, the creation of better paying jobs, tax revenue for our city, and creating pathways into the trade programs and supportive community programs to address the needs of Fresno residents. I believe cannabis retail will be a positive economic and community addition to Fresno only if the best, most responsible operators with the strongest operational track records are chosen. Based on the foregoing, I believe Sweet Flower is the right fit for Fresno. Sincerely, Q,e~~ Dr. Cassandra Little Chief Executive Officer Fresno Metro Black Chamber of Commerce March 24, 2020 Attention: Jennifer Ruiz City of Fresno City Manager's Office Office of Cannabis Oversight Re: Support Sweet F lower's App li cations fo r Reta il Cannabis Licenses in Fresno Dear Jennifer, I am writing to express my support for Sweet Flower Fresno as a candidate for two (2) storefront retail cannabis licenses in Fresno. Sweet Flower's proposed locations are 4798 Marty Avenue (Marty & Shaw-Council District One) and the other is on 3150 Olive Avenue (Olive and First- Council District Seven). As a local business owner and resident of Council District 1, I strongly feel that Sweet Flower is the right choice for Fresno. I currently serve on the boards of the Fresno Chamber of Commerce and the Fresno Metro Black Chamber of Commerce. I am the founder and CEO of Scrubcan, Inc . Scrubcan Inc. is a cleaning company based in Fresno that is focused on providing vertically-integrated cleaning solutions for our clients, in their homes & business. I became familiar with Sweet Flower and their CEO, Timothy Dodd, as they reached out to me directly as a community stakeholder in Council District 1 as well as through my roles in serving on the Boards of the Fresno Metro Black Chamber of Commerce and Fresno Chamber of Commerce. I really appreciate the fact that Sweet Flower's management team took the time to understand our concerns and listen to our thoughts on legal cannabis in Fresno. I have personally enjoyed getting to know Timothy Dodd and Sweet Flower. As a result of several one-on-one meetings with Mr. Dodd, I strongly believe that Sweet Flower is the right choice for Fresno. Since Timothy Dodd's first visit to Fresno, I have been sincerely impressed with Sweet Flower's commitment to Fresno. Sweet Flower joined the Fresno Chamber of Commerce at the Chairman Circle level and has sponsored a televised public forum on legal cannabis in Fresno. Sweet Flower leads by example, demonstrating their commitment to Fresno by joining and contributing to civic organizations and nonprofits such as the Poverello House, Community Hospital's Cancer Center, the California Hmong Chamber of Commerce, as well as the Fresno Metro Black Chamber of Commerce and Clean Fresno. Sweet Flower is on the ground in Fresno, hosting events and talking to the Fresno community, engaging with and visiting neighborhoods and neighboring businesses. Their CEO, Timothy Dodd, has personally led this effort, building consensus and support at a grassroots level, working with local leaders in the Fresno business, residential and minority communities. Mr. Dodd has personally walked neighborhoods in District 1 and District 7 to meet with local business owners and residents that will be impacted by Sweet Flower's two proposed retail stores. In speaking with local business owners, many are excited about the prospect of Sweet Flower moving next door. I recently attended a Sweet Flower educational forum where members of the California Hmong Chamber of Commerce, Fresno Metro Black Chamber of Commerce, and the Fresno Chamber of Commerce were all in attendance. The event was just one example of Sweet Flower's efforts to listen to the community while at the same time bringing people together to learn more about legal cannabis in Fresno. These proactive, meaningful actions, in addition to Sweet Flower's proven track record of operational excellence, has garnered my full support. After meeting with Sweet Flower's CEO, Timothy Dodd and seeing firsthand how Sweet Flower will contribute to Fresno as a community steward, I decided to become a founding member of Sweet Flower Fresno's Community Advisory Committee. The purpose of this committee is to advise on community programs, communication, and allocation of funds to local non-profits and community service projects. After personally vetting Sweet Flower and seeing their dedication to the community first hand, I am excited by the prospect of working with Sweet Flower to emich Fresno through Sweet Flower's commitment to local hiring initiatives, the creation of better paying jobs, tax revenue for our city, and creating pathways into the local cannabis industry and supportive community programs to address the needs of Fresno residents. I believe cannabis retail will be a positive economic and community addition to Fresno only if the best, most responsible operators with the strongest operational track records are chosen. Based on the foregoing, I believe Sweet Flower has what it takes to be the best operator in Fresno and is the best fit for Fresno. Sincerely, Corey Jackson Founder and CEO Scrubcan, Inc. Board of Director, Fresno Metro Black Chamber of Commerce Board of Director, Fresno Chamber of Commerce March 24, 2020 Attention: Jennifer Ruiz City of Fresno City Manager's Office Office of Cannabis Oversight Re: Support Sweet F lower's App li cations fo r Reta il Cannabis Licenses in Fresno Dear Jennifer, I am writing to express my support for Sweet Flower Fresno as a candidate for two (2) storefront retail cannabis licenses in Fresno. Sweet Flower's proposed locations are 4798 Marty Avenue (Marty & Shaw-Council District One) and the other is on 3150 Olive Avenue (Olive and First- Council District Seven). As a local business owner and resident of Council District 1, I strongly feel that Sweet Flower is the right choice for Fresno. I currently serve on the boards of the Fresno Chamber of Commerce and the Fresno Metro Black Chamber of Commerce. I am the founder and CEO of Scrubcan, Inc . Scrubcan Inc. is a cleaning company based in Fresno that is focused on providing vertically-integrated cleaning solutions for our clients, in their homes & business. I became familiar with Sweet Flower and their CEO, Timothy Dodd, as they reached out to me directly as a community stakeholder in Council District 1 as well as through my roles in serving on the Boards of the Fresno Metro Black Chamber of Commerce and Fresno Chamber of Commerce. I really appreciate the fact that Sweet Flower's management team took the time to understand our concerns and listen to our thoughts on legal cannabis in Fresno. I have personally enjoyed getting to know Timothy Dodd and Sweet Flower. As a result of several one-on-one meetings with Mr. Dodd, I strongly believe that Sweet Flower is the right choice for Fresno. Since Timothy Dodd's first visit to Fresno, I have been sincerely impressed with Sweet Flower's commitment to Fresno. Sweet Flower joined the Fresno Chamber of Commerce at the Chairman Circle level and has sponsored a televised public forum on legal cannabis in Fresno. Sweet Flower leads by example, demonstrating their commitment to Fresno by joining and contributing to civic organizations and nonprofits such as the Poverello House, Community Hospital's Cancer Center, the California Hmong Chamber of Commerce, as well as the Fresno Metro Black Chamber of Commerce and Clean Fresno. Sweet Flower is on the ground in Fresno, hosting events and talking to the Fresno community, engaging with and visiting neighborhoods and neighboring businesses. Their CEO, Timothy Dodd, has personally led this effort, building consensus and support at a grassroots level, working with local leaders in the Fresno business, residential and minority communities. Mr. Dodd has personally walked neighborhoods in District 1 and District 7 to meet with local business owners and residents that will be impacted by Sweet Flower's two proposed retail stores. In speaking with local business owners, many are excited about the prospect of Sweet Flower moving next door. I recently attended a Sweet Flower educational forum where members of the California Hmong Chamber of Commerce, Fresno Metro Black Chamber of Commerce, and the Fresno Chamber of Commerce were all in attendance. The event was just one example of Sweet Flower's efforts to listen to the community while at the same time bringing people together to learn more about legal cannabis in Fresno. These proactive, meaningful actions, in addition to Sweet Flower's proven track record of operational excellence, has garnered my full support. After meeting with Sweet Flower's CEO, Timothy Dodd and seeing firsthand how Sweet Flower will contribute to Fresno as a community steward, I decided to become a founding member of Sweet Flower Fresno's Community Advisory Committee. The purpose of this committee is to advise on community programs, communication, and allocation of funds to local non-profits and community service projects. After personally vetting Sweet Flower and seeing their dedication to the community first hand, I am excited by the prospect of working with Sweet Flower to emich Fresno through Sweet Flower's commitment to local hiring initiatives, the creation of better paying jobs, tax revenue for our city, and creating pathways into the local cannabis industry and supportive community programs to address the needs of Fresno residents. I believe cannabis retail will be a positive economic and community addition to Fresno only if the best, most responsible operators with the strongest operational track records are chosen. Based on the foregoing, I believe Sweet Flower has what it takes to be the best operator in Fresno and is the best fit for Fresno. Sincerely, Corey Jackson Founder and CEO Scrubcan, Inc. Board of Director, Fresno Metro Black Chamber of Commerce Board of Director, Fresno Chamber of Commerce