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HomeMy WebLinkAboutCALIFORNIA ORGANICS LLC PBA5/8/2025 Contract NumberNameDESCRIPTIONExpiration DateOK to terminate? Y/NIf Y, please sign A-2017-369-49360 PACIFIC, LLC DBA BNB DISTRO OPERATING AGREEMENT FOR NON-RETAIL COMMERCIAL CANNABIS BUSINESSES12/21/2022YAP A-2017-369-4355 OC COLLECTIVE INC DBA JUNGLE BOYSOPERATING AGREEMENT FOR NON-RETAIL COMMERICIAL CANNABIS BUSINESSES12/31/2022YAP A-2017-369-01-0155 OC COLLECTIVE, DBA BLUM, A CORPORATIONEXTENSION OF OPERATING AGREEMENT FOR ADULT USE (NON-MEDICAL) CANNABIS 12/31/2022YAP A-2017-369-5955 OC COLLECTIVE, DBA BLUM, A CORPORATIONCOMMERCIAL CANNABIS BUSINESS12/31/2022YAP A-2017-369-32AAA HEALTH CENTER OPERTATING AGREEMENT FOR NON-RETAIL COMMERCIAL CANNABIS BUSINESSES12/31/2022YAP A-2017-378ADAMS ST. ENTERPRISES, LLC, DBA: TOUCHSTONE AND DBA TOUCHSTONE SNANON-MEDICINAL COMMERCIAL CANNABIS BUSINESS OPERTATING AGREEMENT 12/31/2020YAP A-2014-243AECOM TECHNICAL SERVICES ENVIRONMENTAL CONSULTANT/ENVIRONMENTAL SERVICES/TECHINCAL STUDIES 10/21/2017YFV A-2018-141-01AECOM TECHNICAL SERVICES INC.PLANNING SERVICES ON AN AS-NEEDED BASIS 6/30/2021YFV A-2015-105ALA CONSTRUCTION BOARD-UP SERVICES TO SECURE PROPERTY/BUILDING IN HAZARDOUSD CONDITIONS5/4/2018YFV A-2017-369-38ALTO BRANDSOPERATING AGREEMENT FOR NON-RETAIL COMMERICIAL CANNABIS BUSINESSES12/31/2022YAP A-2017-171AMERICAN ENGINEERING LABORATORIES INCEXPECTED INSPECTION SERVICES 7/5/2020YFV A-2017-265-03ARHITECTURAL RESOURCES GROUP, INCQUALIFIED CONSULTANT SERVICES/ENVIRONMENTAL SERVICES10/2/2020YFV A-2017-265-04ARHITECTURAL RESOURCES GROUP, INCEXTENSION (1) QUALIFIED CONSULTANTS TO PROVIDE ENVIRONMENTAL SERVICES10/2/2021YFV A-2020-241-01ARHITECTURAL RESOURCES GROUP, INCON-CALL ENVIRONMENTAL AND PLANNING SERVICES AND SUPPLEMENTAL STAFF11/30/2023YFV A-2020-241-02AASCENT ENVIRONMENTALSIDE LETTER11/30/2024YFV A-2002-222-1ATKINSON, SUSAN2ND AMEND TERM EXTENSION ARBITRATION/MEDIATION SVCS NTE $10,0006/30/2004YFV A-2020-261AVOLVE SOFTWAREAMENDMENT FOR ELECTRONIC PLAN SUBMITTAL?N A-2017-369-77BROADWAY HEALTH CENTER, DBA OC KUSH OPERTATING AGREEMENT FOR NON-RETAIL COMMERCIAL CANNABIS BUSINESSES12/31/2022YAP A-2017-168BUREAU VERITAS NORTH AMERICA INC.EXPEDITED INSPECTION SERVICES7/5/2020YFV A-2017-369-60CALIFORNIA ORGANICS LLCOPERATING AGREEMENT FOR NON- RETAIL COMMERCIAL CANNABIS BUSINESSES12/31/2022YAP A-2017-369-55CANNAVISION, LLCOPERATING AGREEMENT FOR NON- RETAIL COMMERCIAL CANNABIS BUSINESSES12/31/2022YAP A-2017-369-42CARDEN LABS, INC.OPERATING AGREEMENT FOR NON- RETAIL COMMERCIAL CANNABIS BUSINESSES12/31/2022YAP A-2017-369-33CB LABS SANTA ANACOMMERCIAL CANNABIS BUSINESSES12/31/2022YAP A-2018-308CB LABS, SANTA ANA, LLCCANNABIS TESTING FACILITY/LABORATORY12/31/2020YAP A-2017-369-10CBD INC., DBA FROM THE EARTH, A MUTUAL BENEFIT CORPORATIONCANNABIS RETAIL BUSINESS - PURSUANT TO CHAPTER 4012/31/2020YAP A-2017-397CDXX VIRTUOSI GROUP LLC, dba KAYA FARMSOPERATING AGREEMENT FOR NON-MEDICINAL COMMERCIAL CANNABIS BUSINESSES12/31/2020YAP A-2017-397-01CDXX VIRTUOSI GROUP LLC, dba KAYA FARMSNON-MEDICINAL COMMERCIAL CANNABIS BUSINESSES12/31/2022YAP A-2017-384-01CEA SERVICES LLC; DBA: CURAT4ED CANNABISEXTENSION OF NON-MEDICINAL COMMERCIAL CANNABIS BUSINESS 12/31/2022YAP A-2015-106CEDELCO CONSTRUCTIONBOARD-UP SERVICES TO SECURE PROPERTY/BUILDING IN HAZARDOUS CONDITIONS 5/4/2018YFV A-2016-317CENTURY STRUCTURAL ENGINEERING CO., INCPLAN CHECK SERVICES11/15/2019YFV A-2015-220CENTURY STRUCTURAL ENGINEERING CO., INC.PLAN CHECK SVCS $125,00O PER CONSULTANT, NTE $500,000 FOR A 3-YR TERM10/16/2018YFV A-2017-265-06-01CIRCLEPOINTFIRST EXTENSION -QUALIFIED CONSULTANTS TO PROVIDE ENVIRONMENTAL SERVICES 10/2/2021YFV A-2017-265-06-01CIRCLEPOINTFIRST EXTENSION -QUALIFIED CONSULTANTS TO PROVIDE ENVIRONMENTAL SERVICES10/2/2021YFV A-2020-241-06CIRCLEPOINTON-CALL ENVIRONMENTAL AND PLANNING SERVICES11/23/2023YFV A-2017-369-29CLS HOLDINGS LLC, CANNABIS LOGISTICAL SOLUTIONOPERATING AGREEMENT FOR NON-RETAIL COMMERCIAL CANNABIS BUSINESSES12/31/2022YAP A-2017-369-63CLS HOLDINGS, LLCOPERATING AGREEMENT FOR NON-RETAIL COMMERCIAL CANNABIS BUSINESSES12/31/2022YAP A-2015-219CSG CONSULTANTS, INC.PLAN CHECK SVCS $125,00O PER CONSULTANT, NTE $500,000 FOR A 3-YR TERM10/16/2018YFV A-2015-219CSG CONSULTANTS, INC.PLAN CHECK SVCS $125,00O PER CONSULTANT, NTE $500,000 FOR A 3-YR TERM10/16/2018YFV A-2016-316CSG CONSULTANTS, INC.PLAN CHECK SERVICES11/15/2019YFV A-2016-316CSG CONSULTANTS, INC.PLAN CHECK SERVICES11/15/2019YFV A-2017-369-23-01DBO INVESTMENTS SA, LLC, dba FROM THE EARTHCANNABIS RETAIL BUSINESS12/31/2022YAP A-2013-172DE LA BARCA, EDDIE-UTILITY CABINET PILOT ART PROGRAM-VARIOUS ARTISTS -- CORE NO.UTILITY CABINET PILOT ART PROGRAM3/10/2014YFV A-2013-172ADE LEON, ALICIA-UTILITY CABINET PILOT ART PROGRAM-VARIOUS ARTISTSUTILITY CABINET PILOT ART PROGRAM3/10/2014YFV A-2020-241-10-01DE NOVO PLANNING GROUPFIRST EXTENSION- EXTEND TERMS FOR AN ADDITIONAL YEAR11/30/2024YFV A-2017-265-12-01ENVIRONMENT PLANNING DEVELOPMENT SOLUTIONS, INC. (EPD SOLUTIONS, INC.)FIRST EXTENSION FOR QUALIFIED CONSULTANTS TO PROVIDE ENVIRONMENTAL SERVICES10/2/2021YFV A-2017-390-01AEXCELBIS LABS, LLCNON-MEDICINAL COMMERCIAL CANNABIS BUSINESSES12/31/2022YAP A-2017-265-14FCS INTERNATIONAL, INC. (FIRST CARBON SOLUTIONS)ENVIRONMENTAL/TECHNICAL STUDIES10/2/2020YFV A-2020-241-19FEHR & PEERSON-CALL ENVIRONMENTAL/PLANNING SERVICES11/30/2023YFV A-2017-369-02FOUR TWENTY GREEN STREET, INC.COMMERCIAL CANNABIS BUSINESS12/31/2020YAP A-2017-393FOUR TWENTY GREEN STREET, INC. DBA THE SPOTCOMMERCIAL CANNABIS BUSINESS12/31/2020YAP .PRANCE NOT ON FILE WORK MAY NO PROCEED CLERK OF COUNCIL DATE: JAN 2 5 2022 OPERATING AGREEMENT FOR NON -RETAIL COMMERCIAL CANNABIS BUSINESSES A_2017-369-60 This Operating Agreement ("AGREEMENT") is dated January 3, 2022, between the City of Santa Ana, a charter city and municipal corporation ("CITY") and California Organics LLC ("OPERATOR"), collectively referred to as "the Parties'. This AGREEMENT shall become effective on the date that OPERATOR is issued a Regulatory Safety Permit by CITY for the operation of a commercial cannabis business conducting ADULT -USE AND MEDICINAL DISTRIBUTION AND CULTIVATION services in whole or in part of its operations transacted and carried -on by OPERATOR at the following subject property location, 3601 W Moore Ave, Santa Ana, CA 92704. Public Benefit. A. Intent. The purpose of this Operating AGREEMENT is to ensure positive community impacts from commercial cannabis business operations through local hiring and local sourcing, community benefit and sustainable business practices, and the collection of required fees and taxes as applicable for the operation of a commercial cannabis business and to provide mitigation options to be used by CITY to compensate for impacts to CITY services, residents, and/or businesses as set forth in Santa Ana Municipal Code Chapter 40. The Parties agree that this AGREEMENT confers substantial private benefits on OPERATOR which should be balanced by commensurate public benefits. As part of the cannabis Regulatory Safety Permit process, OPERATOR agrees to enter into this AGREEMENT. OPERATOR acknowledges that CITY and OPERATOR have had extensive negotiations and proceedings prior to entering into this AGREEMENT. OPERATOR has elected to execute this AGREEMENT as it provides OPERATOR with important economic benefits. Accordingly, the Parties intend to provide consideration to the public to balance the private benefits conferred on OPERATOR by providing mitigation measures to the public and to pay for CITY services. B. Local Hiring and Sourcing. OPERATOR agrees to use its reasonable efforts to hire qualified City of Santa Ana residents living in Santa Ana to work at its commercial cannabis businesses. OPERATOR shall also use reasonable efforts to retain the services of qualified contractors and suppliers who are located in the City of Santa Ana or who employ a significant number of City of Santa Ana residents. OPERATOR shall make a good faith effort to advertise on various social media sites, at local job fairs, and through public agencies and organizations. C. Community Benefit and Sustainable Business Practices Plan. OPERATOR agrees to submit a Community Benefit and Sustainable Business Practices Plan ("Plan') to CITY that is hereby attached and incorporated into this AGREEMENT as ("EXHIBIT A"). Said Plan shall detail OPERATOR's experience working with community -based groups such as school districts, college districts, city or county agencies, non-profit organizations, artist or downtown groups. The Plan shall also include a description of OPERATOR's efforts for recruiting and hiring local persons and businesses. Said Plan must also outline commitments by OPERATOR to engage its staff in community service events or programs in the City of Santa Ana. Plan must also outline and address sustainable business practices. OPERATOR shall adequately document that it has met the Plan's obligations and commitments as a condition of renewal/extension of this AGREEMENT upon expiration of the initial term and any extensions. 2. Records Inspection, Examination and Audit. OPERATOR acknowledges and agrees that CITY is empowered under this Agreement to inspect, examine and audit OPERATOR's books and records (including tax filings and returns), to ascertain the amount of operating fees due and owing. CITY or its authorized agents shall have the power and authority to conduct a full inspection, examination and audit of such books and records (including tax filings and returns) at any reasonable time, including but not limited to, during normal business hours. In the event any such books, records, tax filings and returns cannot be made fully available within the City of Santa Ana, OPERATOR acknowledges and agrees that it shall reimburse CITY for the cost of all transportation, lodging, meals, portal-to-portal travel time, and other incidental costs reasonably incurred by CITY or its authorized agents in obtaining said full inspection, examination and audit. In the event that said records inspection, examination and audit determines that a net operating agreement fee payment deficiency of greater than Five Percent (5%) exists; OPERATOR acknowledges and agrees that it shall reimburse CITY for the full cost of said records inspection, examination and audit reasonably incurred by CITY or its authorized agents. 3. Term. This AGREEMENT shall start on the date indicated above and shall terminate on December 31, 2022 regardless of starting date unless terminated earlier in accordance with Section 9 or 10 of this AGREEMENT. 4. Business License Reauired. A valid City of Santa Ana Business License is required for all persons engaged in transacting and carrying on any commercial cannabis business activity in the City of Santa Ana. It is unlawful for any person or legal entity to commence, transact or carry -on cannabis business activity in the City of Santa Ana without first having procured a City of Santa Ana cannabis business license. 5. Operating Commercial Cannabis Business. OPERATOR shall not operate a commercial cannabis business authorized under the Santa Ana Municipal Code unless: A. It is the holder of a valid Regulatory Safety Permit issued by CITY in accordance with the procedures and requirements of Article 1 of Chapter 40, of the Santa Ana Municipal Code; and B. At such time as the State of California requires cannabis business facilities and businesses to hold a valid license or permit issued by the State of California, it also holds such license or permit; unless, however, such permit or license is subsequently not required by the State of California for the type of cannabis facility or business operation that is the subject of this AGREEMENT. 2 C. OPERATOR remains in compliance with any and all other laws and regulations pertaining to commercial cannabis businesses. D. OPERATOR shall remain in compliance with the operating requirements applicable to commercial cannabis businesses contained in the City's Municipal Code. 6. OPERATOR Indemnification of CITY. A. OPERATOR will indemnify CITY from any claims, damages, injuries, or liabilities of any kind whatsoever sustained or incurred by CITY resulting from entering into this AGREEMENT, and OPERATOR's performance and/or breach of this AGREEMENT. OPERATOR agrees to defend, at its sole expense, any action against CITY, its agents, officers, and employees related to this AGREEMENT. OPERATOR agrees to indemnify and reimburse CITY for any court costs and attorney fees that CITY may be required to pay as a result of any legal challenge related to this AGREEMENT and/or CITY's approval of a Regulatory Safety Permit. CITY may, at its sole discretion, participate at its own expense in the defense of any such action, but such participation shall not relieve the OPERATOR of its obligation hereunder. 7. OPERATOR Compliance with Laws. OPERATOR agrees to comply with the City of Santa Ana Charter and Municipal Code, including but not limited to Chapters 18, 21 and 40, and the laws and regulations of the State of California. 8. Default and Termination for Cause. This AGREEMENT may be terminated by CITY for cause with thirty (30) days' written notice to OPERATOR. Cause as used in this section, is defined as: A. Failure to comply with the terms of the City of Santa Ana Cannabis Regulatory Safety Permit issued to OPERATOR by CITY; B. Failure of OPERATOR to maintain a valid active City of Santa Ana Business License as the commercial cannabis business approved by the Regulatory Safety Permit and as operating; C. Failure of OPERATOR to comply with the requirements of the Community Benefits and Sustainable Business Practices Plan; D. Unauthorized transfer by OPERATOR of the City of Santa Ana cannabis business Regulatory Safety Permit issued by CITY; E. Failure by OPERATOR to accurately report gross receipts information or other data necessary for CITY to calculate/confirm operating agreement fees; F. Failure by OPERATOR to pay operating agreement fees and related reimbursement costs within thirty (30) days of the date those fees are due; G. Failure by OPERATOR to cooperate with CITY or CITY's authorized agents in any inspection, examination and audit of OPERATOR's commercial cannabis business books and records (including tax filings and returns). H. OPERATOR shall cure the default resulting from the cause for termination within thirty (30) days of the date of the notice of termination. If OPERATOR fails to cure the default within thirty (30) days of the date of the notice of termination for cause, this AGREEMENT will be terminated. I. This AGREEMENT will automatically terminate if: i. OPERATOR's Regulatory Safety Permit is revoked by CITY or is not renewed by CITY, or ii. OPERATOR transfers its Regulatory Safety Permit pursuant to Santa Ana Municipal Code section 40-12. 9. Termination Without Cause. Upon mutual written agreement of the Parties, this AGREEMENT may be terminated with thirty (30) days' notice. 10. Termination -Effect on Prior Obligations. Upon any termination of this AGREEMENT, OPERATOR's obligation to report and remit operating agreement fees due and payable under the terms of this AGREEMENT for each month or fraction of a month of a cannabis business operation engaged in within the City of Santa Ana prior to termination of this AGREEMENT shall continue to be in effect. Past due penalties and late interest charges shall continue to accrue and be applicable until all operating fees due under this AGREEMENT are paid in full. OPERATOR's liability for any remaining unpaid past due penalties and/or late interest charges shall continue until fully satisfied. 11. Remedies. A. It is acknowledged by the parties that CITY would not have entered into this AGREEMENT if it were to be liable in damages under this AGREEMENT, or with respect to this AGREEMENT or the application thereof, except as hereinafter expressly provided. B. Each of the parties hereto may pursue any remedy at law or equitable relief available for the breach of any provision of this AGREEMENT, except that CITY shall not be liable in monetary damages, unless expressly provided for in this AGREEMENT. C. Any dispute, claim or controversy arising out of or relating to this Agreement or the breach, termination, enforcement, interpretation or validity thereof, including the determination of the scope or applicability of this agreement to arbitrate, shall be determined by arbitration in Orange County California before three arbitrators. The arbitration shall be administered by JAMS pursuant to its Comprehensive Arbitration Rules and Procedures pursuant to JAMS' Streamlined Arbitration Rules and Procedures. Judgment on the Award may be entered in any court having jurisdiction. EI This clause shall not preclude parties from seeking provisional remedies in aid of arbitration from a court of appropriate jurisdiction. 12. Reimbursement Clause. In consideration of the time and costs incurred by CITY in the drafting and implementation of this AGREEMENT, OPERATOR agrees to pay $2,500 to CITY within thirty (30) days of execution of this AGREEMENT. 13. Attorney Fees and Costs. In any action or proceeding between CITY and OPERATOR brought to interpret or enforce this AGREEMENT, or which in any way arises out of the existence of this AGREEMENT or is based upon any term or provision contained herein, the "prevailing party" in such action or proceeding shall be entitled to recover from the non -prevailing party, in addition to all other relief to which the prevailing party may be entitled pursuant to this AGREEMENT, the prevailing party's reasonable attorneys' fees and litigation costs, in an amount to be determined by the court. The prevailing party shall be determined by the court in accordance with California Code of Civil Procedure Section 1032. Fees and costs recoverable pursuant to this Section 17 include those incurred during any appeal from an underlying judgment and in the enforcement of any judgment rendered in any such action or proceeding. 14. Notice. Any notice, tender, demand, delivery, or other communication pursuant to this AGREEMENT shall be in writing and shall be deemed to be properly given if delivered in person or mailed by first class or certified mail, postage prepaid, or sent by fax or other telegraphic communication in the manner provided in this section, to the following persons: To CITY: Clerk of the City Council City of Santa Ana 20 Civic Center Plaza (M-30) P.O. Box 1988 Santa Ana, CA 92702-1988 Fax 714-647-6956 Copies to: Executive Director— Planning and Building Agency City of Santa Ana 20 Civic Center Plaza (M-20) P.O. Box 1988 Santa Ana, California 92702-1988 Fax 714-973-1461 City Attorney City of Santa Ana 20 Civic Center Plaza (M-29) P.O. Box 1988 Santa Ana, California 92702-1988 Fax 714-647-6515 To OPERATOR: CALIFORNIA ORGANICS CALIFORNIA ORGANICS LLC 3410 LA SIERRA #F-225, RIVERSIDE, CA 92503 3601 W MOORE AVE, SANTA ANA, CA 92704 Tel (949) 892-8639 Jordanginger89@gmail.com Copy to: Sean Maddocks 23 Corporate Plaza Dr #150 Newport Beach, CA 92660 (949) 291-0587 maddocks@greencp.com A party may change its address by giving signed notice in writing to the other party. Thereafter, any communication shall be addressed and transmitted to the new address. If sent by mail, communication shall be effective or deemed to have been given three (3) days after it has been deposited in the United States mail, duly registered or certified, with postage prepaid, and addressed as set forth above. If sent by fax or email document attachment, communication shall be effective or deemed to have been given twenty-four (24) hours after the time set forth on the transmission report issued by the transmitting facsimile machine, addressed as set forth above. For purposes of calculating these time frames, weekends, federal, state, County or City holidays, or City Hall closure dates shall be excluded. 15. Exclusivity and Amendment. This AGREEMENT represents the complete and exclusive statement between CITY and OPERATOR, and supersedes any and all other agreements, oral or written, between the parties. This AGREEMENT may not be modified except by written instrument signed by CITY and by an authorized representative of OPERATOR. Each party to this AGREEMENT acknowledges that no representations, inducements, promises or agreements, orally or otherwise, have been made by any party, or anyone acting on behalf of any party, which are not embodied herein. 16. Assignment. OPERATOR may not assign or transfer any interest herein without the prior written consent of CITY and any such assignment or transfer without CITY's prior written consent shall be considered null and void. 17. Discrimination. OPERATOR shall not discriminate because of race, color, creed, religion, sex, marital status, sexual orientation, age, national origin, ancestry, disability, gender identity, gender expression, medical condition, genetic information, military or veteran status. as defined and prohibited by applicable law, in the recruitment, selection, training, utilization, promotion, termination or other employment related activities. OPERATOR affirms that it is an equal opportunity employer and shall comply with all applicable federal, state and local labor laws and regulations. 18. Jurisdiction -Venue. This AGREEMENT has been executed and delivered in the State of California and the validity, interpretation, performance, and enforcement of any of the clauses of this AGREEMENT shall be determined and governed by the laws of the State of California. Both parties further agree that Orange County, California, shall be the venue for any action or proceeding that may be brought or arise out of, in connection with or by reason of this AGREEMENT. 19. Severability. If any part of this AGREEMENT is found to conflict with applicable local or state laws or regulations, such part shall be inoperative, null and void insofar as it conflict with said laws or regulations, or may be modified or suspended as may be necessary to comply with any local or state law or regulation but the remainder of the AGREEMENT shall continue in full force and effect. 20. Counterparts. This AGREEMENT may be executed in counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument. The execution of this AGREEMENT may be by actual, facsimile or electronic signature. 21. Disclaimer. Despite California's commercial cannabis laws and the terms and conditions of this AGREEMENT or any Regulatory Safety Permit issued pertaining to OPERATOR or the hereinabove specified property location, California commercial cannabis cultivators, transporters, distributors, cannabis testing facility/laboratory businesses or possessors may still be subject to arrest by state or federal officers and prosecuted under state or federal law. The Federal Controlled Substances Act, 21 USC § 801 et. seq., prohibits the manufacture, manufacturing, and possession of cannabis without any exemptions for medical or non -medicinal use. 22. Authority to Bind. Each undersigned represents and warrants that its signature hereinbelow has the power, authority and right to bind their respective parties to each of the terms of this AGREEMENT, and shall indemnify CITY fully, including reasonable costs and attorney's fees, for any injuries or damages to CITY in the event that such authority or power is not, in fact, held by the signatory or is withdrawn. -Signature Page Below- A-2017-369-60 IN WITNESS WHEREOF, the parties hereto have executed this AGREEMENT the date and year first above written. ATTEST: Clerk of the Council APPROVED AS TO FORM: SONIA R. CARVALHO City Attorney By: v Jose Montoya Deputy City Attorney FOR APPROVAL: Q ` Minh Thai, Executive Director Planning & Building Agency CITY OF SANTA ANA KR4 RIDGE- City6 Manager OPERATOR LEGAL NAME: CALIFORNIA ORGANICS, LLC SIGNATORY NAME: JORDAN GINGER TITLE: OWNER TAXPAYER 19: 84-1990614_ EXHIBIT A COMMUNITY BENEFIT AND SUSTAINABLE BUSINESS PRACTICES PLAN CALIFORNIA ORGANICS LLC COMMUNITY BENEFITS PLAN California Organics has been created as a modest cannabis cultivation with an emphasis on producing the highest quality cannabis for both patients and adult -use consumers, and we are looking forward to the possibility of bringing new business opportunities to the City of Santa Ana as well as to contributing to local community service initiatives. As a developing business we would like to take a community -focused approach to our cultivation operations, and we look forward to integrating our Cultivation into the community of Santa Ana. Our goal is to create a cannabis business based on stewardship, health and wellness, and community engagement and development. At California Organics we focus on serving the community in which we operate, and each community has their own strong sense of identity and history. Santa Ana's rich history, character, and sense of place speak for themselves, and we look forward to working with the community to conscientiously integrate our proposed cannabis cultivation into the existing social fabric. We understand that cannabis cultivation is a sensitive subject, and we want to build connections in the community and facilitate an open dialogue surrounding our operations. California Organics' mission is to provide the highest quality cannabis for both patients and adult -use consumers while maintaining good rapport with the community in which we operate. We strive to integrate our operations into the community, versus having the community adapt to our presence; community safety and responsible business practices are prioritized over profits, and longevity over short-term success. A. NONPROFIT ORGANIZATION PARTNERSHIPS: California Organics is pledging to allocate a percentage of its annual sales proceeds to local nonprofits that mostly fall under the umbrella of humanitarian causes. California Organics is committed to becoming an integrated member of the community and hopes to provide support to local non-profit and community organizations. Serving the community and working with neighbors to give back to nearby charities and community organizations is a responsibility that all small businesses should seek to fulfill. Accordingly, California Organics has selected a group of local organizations that it intends to support and work with towards the goal of improving the surrounding community. During the build -out phase of our operation we experienced first-hand the negative impact of homelessness in the area due to a homeless camp set up on our premises. This led to vandalism of our site and extensive time cleaning up once the individuals were removed. We have worked closely with the City and Local Authorities to address this issue and would like to further extend our community benefits efforts to include organizations that find solutions for and serve the local homeless population. Below is a list of Santa Ana Organizations that California Organics intends to support through charitable contributions as well as volunteerism: - WORKING WARDROBES - UNITED WAY BOYS & GIRLS CLUB OF SANTA ANA SUPPORT THE ENLISTED PROJECT - INSTITUTE FOR COMMUNITY IMPACT PHOENIX HOUSE AMERICA ON TRACK WISEPLACE MICAH'S WAY HABITAT FOR HUMANITY OF ORANGE COUNTY ASSISTANCE LEAGUE OF SANTA ANA Due to the sensitive nature of our business, we will be making blind donations to any organizations identified above that serve children and their families. This allows us to have an impact on individuals requiring assistance without having a negative impact on the children and families these organizations serve. B. LOCAL & EQUITY HIRING PRACTICES: California Organics is committed to hiring local and we will commit to striving for at least 50% local employment. We seek out team members from non-traditional sources to ensure employees continue to represent the diversity that exists within the community we operate in. California Organics also sources employees from surrounding areas in Orange County with disproportionately impacted populations and economically disadvantaged areas. By actively seeking employees from the local community, California Organics aims to offer jobs to promote socially equitable hiring and employment practices. We seek to encompass a diverse employee base and create a secure environment for staff with varying backgrounds and identities. California Organics is confident it can create an innovative environment that embraces diversity and respect for all peoples by engaging local organizations with mission statements that align with California Organics' ethos. We look to employ competent individuals who excel in agriculture, understand the importance of compliance, and have a passion for our industry. These qualifications do not require a collegiate education or narrow skill set to be successful and our job opportunities are open to all interested and qualified individuals. Our consumer base is represented by all walks of life; likewise our team members should be equally as diverse. We are proud to be able to offer competitive pay with comprehensive benefit options, employee assistance, and generous time -off policies for all positions. California Organics conforms to hiring practices mandated by the Equal Employment Opportunity Commission as well as the Department of Fair Employment and Housing. Our recruitment, hiring, and promoting are executed with an eye toward diversity and inclusion; our goal is to use best practices to hire locally whilst increasing representation and diversity amongst the California Organics team. While maintaining legally compliant hiring protocols, California Organics is focusing our Santa Ana hiring efforts in Santa Ana and surrounding communities. We aim to attract local talent including individuals who are underrepresented in the industry as well as general working populations, including women, disabled persons, seniors, veterans, minorities, LGBTQ, and gender non -conforming individuals. California Organics is excited to form a partnership with the community of Santa Ana. It is important to hire, train, and mold a proficient staff to uphold the professional and high standard of operations expected of California Organics employees. Managerial staff works closely with staff members to ensure efficiency, professionalism, organization and sanitation of the facility. Our goal is to fulfill staffing requirements with local talent and skill, and we work with the community to hire locally as much as possible. 10 We are working with community organizations and non -profits that offer employment services to execute this initiative. California Organics has already begun communicating and strategizing with local employment agencies and job skills training organizations such as Santa Ana Staffing Solutions and Express Employment Professionals to help source qualified Santa Ana residents. We are also planning to work with cannabis -specific employment agencies such as Vangst, FlowerHire, Careers in Cannabis, and Mericratic Society to ensure we are sourcing qualified individuals with cannabis cultivation experience. Beyond these efforts we feature job listings at Orange County Universities including, but not limited to, Chapman College, Cal State University Fullerton, Orange Coast College, Santiago Canyon College, Irvine Valley College Vanguard University, University of California Irvine and others. California Organics also advertises open positions on Indeed, Glassdoor, Ziprecruiter and Monster's websites and participates in various local Career Expo job fairs such as: - JOB FAIR X (BY: HIREX) - MILITARY X (BY: HIREX) - DIVERSITY X (BY: HIREX) - DIVERSITY CAREER GROUP - OCC CAREER FAIR Job postings are made public for a minimum of 30 days, and posts shall only include qualifications and skills necessary for the job using inclusive, unbiased, ungendered language. Eligible candidates should be driven to learn about cannabis and committed to providing the highest level of service. The following list highlights some qualifications for California Organics' Cannabis staff: (1) High School or equivalent education; (2) agricultural experience; (3) superior communication skills; (4) competent cash handling skills; (5) METRC experience; (6) social media proficiency; (7) cannabis knowledge; (8) willingness to be a team player; (9) willingness to take instruction. In addition to the above resources, postings are advertised widely across the local community, including in local publications. All hiring decisions must go through California Organics' hiring committee, which is comprised of Management and one Lead Cultivator. The hiring committee is provided with application evaluation checklists, which include prioritizing equal access opportunities, a list of interview questions, and key guidelines for ensuring the decision -making process is transparent and unbiased. Additional consideration is given to candidates who are: (1) low-income applicants; (2) Santa Ana residents; (3) veterans or seniors; (4) applicants with expugnable cannabis convictions or who are members of families that have been negatively impacted by other members' cannabis convictions. California Organics is committed to establishing and maintaining hiring practices that integrate local hiring initiative with promotion of socially equitable hiring and promotions. California Organics aims to have an immensely diverse representation of qualified employees from minority communities as a result of progressive hiring and recruitment policies. California Organics encourages diverse, fair hiring and supplements traditional job -site recruitment methods with in-house referrals and targeted advertisements. All postings issued by California Organics highlight diversity, and encourage everyone regardless of race, color, religion, national origin, ancestry, sex, disability or age to apply for employment. California Organics adopts and builds upon targeted hiring methods to institute equivalent inclusive hiring practices that seek qualified employees from, and advertise positions to, veterans and seniors; women; and disproportionately impacted communities. C. LOCAL COMMUNITY SERVICE COMMITMENT: In addition to supporting the organizations outlined in Section A, California Organics will work with its employees to provide community service efforts in Santa Ana through community service organizations. California Organics will incentivize employees to 11 participate in 10 hours of local community service per year. By taking an active role in the community, California Organics hopes to better understand the local climate and how to best serve the local community. Participating in the immediate community will further allow California Organics to work with community members towards the solution of common community problems. California Organics is committed to volunteering time and funds to the organizations and will continue to work with the local population to serve the community. D. CALIFORNIA ORGANICS GOOD NEIGHBOR POLICY: California Organics will implement comprehensive nuisance mitigation equipment and policies to ensure that the neighbors are not inconvenienced or bothered by our operations. California Organics' cultivation will be managed so as to prevent becoming a nuisance or having an adverse impact on the surrounding community. Management and Ownership will be accountable to the community and willing to implement necessary changes to ensure good neighbor policies are upheld. California Organics' Good Neighbor Policy includes air quality and odor control measures, responsible waste management practices, noise reduction policies, and employee/visitor conduct rules. The neighborhood will also benefit from the increased security of the cultivation location. California Organics' security plans include round the clock surveillance and security, which will help maintain and increase the safety of the community. E. GREEN PRACTICES: California Organics incorporates Green practices in all areas of operations to mitigate the environmental impact of our commercial activities. California Organics' business practices reflect a combination of deference to the natural landscape of the region, sustainable elements in facility design, the latest sustainable equipment and technology and cultural practices that prioritize environmental consciousness. Green Building Design & Execution: Our design and construction plans comply with limitations on demolition waste, anticipate future use of solar panels to provide supplemental energy, utilize high efficiency appliances, implement transportation management strategies, and meet or exceed energy performance standards. California Organics emphasizes locally available materials to reduce environmental costs relating to transportation, incorporate green elements into interior and exterior design and provide flexibility through dynamic planning and design. Secure Storage is located in a portion of the facility that helps prevent extreme temperature fluctuations in the facility with the door to the operation only being opened and closed for employee and visitor access. Designing the facility as such reduces the burden placed on the HVAC system to attain stability of internal conditions in storage spaces and reduces electricity costs and fossil fuel use. This forward -thinking best management practice guarantees the highest quality and storage capacity possible for California Organics. Water Conservation: We limit water use by integrating drought tolerant landscaping and installing low - flow fixtures. Southern California's mission to reduce the burden on limited freshwater resources has compelled introduction of xeriscaping techniques. We integrate native drought tolerant species along with low impact irrigation methods to mitigate demands on water consumption. An automated deep -drip irrigation system and aesthetically pleasing mulch surfaces minimize evapotranspiration and enhances the visual design. Further water conservation measures include application of low -flow fixtures throughout the facility. Our facilities are outfitted with EPA designated "WaterSense" faucets and toilets, which use 20-30% less water than conventional systems. Alternative Modes of Transportation: Mitigating traffic congestion and reducing emissions relating to transportation is an essential civic duty for stakeholders in a central business district. California Organics 12 implements strategies that create incentives for employees and customers to use alternative modes of transportation. As part of this initiative, we provide a bulletin for our employees with information on public transit routes, ridesharing information, bicycle/metro route and safety information and other pertinent information and materials. Our employees and customers can enroll in our public transportation voucher program, which reimburses all costs for the use of transportation. We also provide funding for safe bicycle storage, such as racks or lockers, bike U-locks, helmets, and other equipment for customers who qualify for low-income discounts. California Organics' facilities maintain proper sidewalk clearance space from bike racks for wheelchairs, and ensure an adequate number of curb cuts, in compliance with the Americans with Disabilities Act. Materials/Waste Storage and Disposal: We always practice the Three R's of Sustainability: Reduce, Reuse, Recycle. Separate recycling containers are placed throughout the facility for both employees and patrons and ensure that regular pickups are conducted with ease. Electronic waste is also be collected and brought to appropriate outlets. California Organics' recordkeeping system incorporates the goal of eliminating paper records in the scope of compliance whenever possible to reduce our overall waste contribution. California Organics creates a lighthearted competitive atmosphere amongst the staff by tracking the amount of waste produced at the facility and introducing incentives for reducing the amount of landfill waste generated. Further, we will work with our rockwool grow cube provider to find the best solutions for reusing or recycling our grow media. Equipment & Policies: We use environmentally friendly equipment whenever feasible and have established green company policies for the sole purpose of creating environmental consciousness amongst the staff. Equipment and materials include fuel efficient distribution vehicles, "Energy Star" rated appliances, integration of recycled materials with respect to interior design elements, and photovoltaic panels. We plan to purchase at least two (2) distribution vehicles and to outfit each to meet Local and State specifications. We are also looking into the feasibility of adding photovoltaic/solar panels to help offset our energy consumption. As a cannabis cultivator solar panels offer a great way to reduce our energy consumption while showing our commitment to sustainable practices and the overall environment. F. CALIFORNIA ORGANICS COMMUNITY BENLFITS SUMMARY: California Organics is committed to becoming an integrated member of the greater Santa Ana community and hopes to provide continued support to local non-profit and community organizations in the form of charitable contributions and volunteer service. Our management team will be available to field any public concerns about our operations and will do their best to resolve any issues in a timely and professional manner. We look forward to the possibility of bringing new business opportunities to Santa Ana as well as to contributing to local community service initiatives. California Organics looks forward to the opportunity of applying a community -first approach in Santa Ana and creating beneficial relationships with the community and our neighbors. 13