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DocuSign Envelope ID: C8E4C7D7-6D31-43F1-8731-2545DB3BB509 Local Commitments • Hiring o SA HALT aims to make a good faith effort for a local hire percentage of 90% with the aim to reach this goal in 2024. In other words, by the end of 2024, 90% of employees will be Santa Ana residents. There are several methods we plan to use to accomplish this goal, which includes working with the Santa Ana WORK Center, local community colleges, and other job resource centers. All job posting and recruitment efforts will make clear the requirement of Santa Ana residency. o We will also include explicitly within job posting our encouragement of social equity (race, low-income, cannabis -based criminal conviction, veteran stats, and gender) to apply for these positions. o We will conduct annual audits of our workforce demographics to see what percentages and in what categories we are meet goals and where we are falling short. Sourcing o For all manner of product needs, and products provided, we will make a good faith effort to turn to local suppliers. With regard to product needs, since we are a cultivator and distributor, we quite limited in turning to Santa Ana cannabis product providers, as we are those providers. However, we can prioritize the companies that receive our products and services. Naturally, these will be Santa Ana operators (i.e. supply chain agreements will be pursued and executed with all Santa Ana operators first, and all supply chain agreements will give Santa Ana operators "first -come" status for products). Particularly, we will work with all cannabis producers and retailers to create a full stream "made in Santa Ana" branding initiative. When it comes to non -cannabis needs, SA HALT will make a good faith effort to turn to Santa Ana providers with exclusive preferential ity. This means that for all business services needed, such as taxes, office supplies, security, landscaping, bookkeeping, and more, we will use providers that are based in Santa Ana as exclusively and exhaustively as possible. We will also encourage our employees to utilize Santa Ana restaurants, food establishments, and coffee shops to fulfill dietary needs on and off the clock. Employee Support • Wages o All employees will be paid a living wage, with built-in cost -of -living adjustments on an annual basis. All employees will be paid as salaried, non-exempt workers at a minimum base pay of $37,500 per year. This is in line with the MIT Living Wage calculator estimate for Santa Ana, which equates to $18.00 per hour. • Benefits o All full-time employees be offered benefits that are standard across all other industries. This includes medical, dental, and vision insurance, holidays, paid time off, HSA/FSA, and legal and tax assistance programs. Environmental Measures • Efficiency o Cultivators are notorious users of electricity and water, with the electricity often coming dirty source and contributing significantly to pollution and climate change. SA HALT is not such as cultivator. 10