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HomeMy WebLinkAboutHNHPC, INC DBA CATALYSTPBA5/8/2025 Contract NumberNameDESCRIPTIONExpiration DateOK to terminate? Y/NIf Y, please sign A-2017-369-19FRANCY, CHRISTOPHER ON BEHALF OF PURPLE HOLLISTICCOMMERCIAL CANNABIS BUSINESS12/31/2020YAP A-2020-241-20GPA CONSULTINGON-CALL ENVIRONMENTAL/PLANNING SERVICES11/30/2023YFV A-2017-369-15GREEN ROSE GREEN LEAF CARE, DBA SPEEDY WEEDYCOMMERCIAL CANNABIS BUSINESS12/31/2020YAP A-2017-395GREEN ROSE GREEN LEAF CARE, DBA SPEEDY WEEDYCOMMERCIAL CANNABIS BUSINESS12/31/2020YAP A-2017-403GREEN ROSE GREEN LEAF CARE, DBA SPEEDY WEEDYCOMMERCIAL CANNABIS BUSINESS12/31/2022YAP A-2017-369-08HALLADAY HEALING GROUP, INC.COMMERCIAL CANNABIS BUSINESSES12/31/2020YAP A-2017-167HAYER CONSULTANTS INC. EXPEDIATED INSPECTION SERVICES7/5/2020YFV A-2017-369-11HEALTHY HEALING HOLISTIC OPTIONSCOMMERCIAL CANNABIS BUSINESS12/31/2020YAP A-2017-383HERBL INC., HERBL DISTRIBUTION SOLUTIONSCOMMERCIAL CANNABIS BUSINESS12/31/2020YAP A-2017-382HERO OAK, LLC.COMMERCIAL CANNABIS BUSINESS12/31/2022YAP A-2017-388HERO OAK, LLC.COMMERCIAL CANNABIS BUSINESS12/31/2022YAP A-2017-369-66HIGH OCCASIONS LLCCOMMERCIAL CANNABIS BUSINESS12/31/2022YAP A-2017-369-36HNHPC, INC DBA CATALYSTCOMMERCIAL CANNABIS BUSINESS12/31/2022YAP A-2017-369-05HNPC, A NONPROFIT MUTUAL BENEFIT CORPORATIONCOMMERCIAL CANNABIS BUSINESS12/31/2020YAP A-2001-078HOGLE-IRELAND, INC.PERMIT, PLAN CHECK & PLANNING SERVICES12/31/2001YFV A-2002-183HOGLE-IRELAND, INC.CONSULTANT6/30/2003YFV A-2017-369-47HUNDRED FLOWERS INC. COMMERCIAL CANNABIS BUSINESS12/21/2022YAP A-2017-369-74HUNDRED FLOWERS INC. COMMERCIAL CANNABIS BUSINESS12/31/2022YAP A-2011-198IBI GROUPPLANNING/ENVIRONMENTAL SERVICESUntil TerminatedYFV A-2014-251ICF INTERNATIONALENVIRONMENTAL/TECHNICAL STUDIES10/21/2017YFV A-2012-069ICF JONES AND STOKESPROFESSIONAL SERVICES/ENVIRONMENTALUntil TerminatedYFV A-2006-057INTEGRAL COMMUNITIES IASSIGNMENT & ASSUMPTION6/20/2015N A-2017-170INTERWEST CONSULTING GROUPCONSULTANT/EXPEDIATED INSPECTION7/5/2020YFV A-2015-221J LEE ENGINEERING, INC.CONSULTANT/PLAN CHECK10/6/2018YFV A-2016-318J LEE ENGINEERING, INC.PLAN CHECK SERVICES11/15/2019YFV A-2017-166J LEE ENGINEERING, INC.EXPEDIATED INSPECTION SERVICES7/5/2020YFV A-2017-169JASON ADISON SMITH CONSULTING SERVICES, INC. DBA JAS PACIFICEXPEDIATED INSPECTION SERVICES7/5/2020YFV A-2017-369-03JASON LILLY ASSOCIATIONCANNABIS RETAIL BUSINESS12/31/2020YAP A-2014-266JOHN KALISKI ARCHITECTSPROFESSIONAL SERVICES/ARCHITECTURE & URBAN DESIGN10/21/2017YFV A-1999-139JONES & STOKES ASSO.MITIGATED NEGATIVE DECLARATION8/1/2000YFV A-2007-117JONES & STOKES ASSO.CONSULTANTUntil TerminatedYFV A-2017-369-58KGJMK OPCO INC., DBE MY GREEN NETWORKCOMMERCIAL CANNABIS BUSINESS12/31/2022YAP A-2017-369-52KIKI GREENS DBA PROTECTED TRANSPORT SERVICESCOMMERCIAL CANNABIS BUSINESS12/31/2022YAP A-2017-380KIKI GREENS DBA PROTECTED TRANSPORT SERVICESCOMMERCIAL CANNABIS BUSINESS12/31/2020YAP A-2014-252KIMLEY HORN AND ASSOCIATES, INC.ENVIRONMENTAL/TECHNICAL STUDIES10/21/2017YFV A-2017-265-19KIMLEY HORN AND ASSOCIATES, INC.ON-CALL ENVIRONMENTAL SERVICES10/3/2020YFV A-2019-073-19KIMLEY HORN AND ASSOCIATES, INC.ON-CALL ENVIRONMENTAL AND PLANNING SERVICES5/21/2021YFV A-2020-241-27KIMLEY HORN AND ASSOCIATES, INC.ON-CALL ENVIRONMENTAL & PLANNING SERVICES11/30/2023YFV A-2016-372KOA CORPORATION ("KOA")ENVIRONMENTAL/CONSULTING SERVICES FOR THE METRO EAST12/31/2017YFV A-1991-142LESLIE HEUMANN & ASSOCIATESEVALUATE HISTORIC STRUCTURESUntil TerminatedYFV A-2017-369-67MARCHE CO, LLC.COMMERCIAL CANNABIS BUSINESS12/31/2022YAP A-2018-253MATERIA MDEICA LABSCANNAIS TESTING FACILITY/LABORATORY FEES12/31/2020YFV A-2017-369-82MATHIAS FIELDS, INC.COMMERCIAL CANNABIS BUSINESS12/31/2022YAP A-2014-170MELAD AND ASSSOCIATESPLAN CHECK SERVICES7/15/2017YFV A-2017-265-21MICHAEL BAKER INTERNATIONALQUALIFIED CONSULTANT SERVICES/ENVIRONMENTAL SERVICES10/2/2020YFV A-2019-073-21MICHAEL BAKER INTERNATIONALQUALIFIED CONSULTANT SERVICES/ENVIRONMENTAL SERVICES5/21/2021YFV A-2020-241-29MICHAEL BAKER INTERNATIONALON-CALL ENVIRONMENTAL/PLANNING SERVICES11/30/2023YFV A-2001-196MICHAEL BRANDMAN ASSOCIATESENVIRONMENTAL IMPACT REPORTUntil TerminatedYFV A-2017-369-65MINERVA PRODUCTS, INC. DBA MINERVACOMMERCIAL CANNABIS BUSINESS12/31/2022YAP A-2017-369-14MONEX PLACE WELLNESS, INC.COMMERCIAL CANNABIS BUSINESS12/31/2020YAP INSURANCE NOT ON FILE t%rLN WORK MAY N(�TT PROCEED A-2017-369-36 CLERK OF COUNCI( DATE: OPERATING AGREEMENT FOR ADULT -USE RETAIL COMMERCIAL CANNABIS BUSINESSES This Operating Agreement ("AGREEMENT") is dated f�Vf11 1 between the City of Santa Ana, a charter city and municipal corporation ("CITY") and HNHPC, INC DBA Catalyst — Santa Ana ("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 RETAIL services in whole or in part of its operations transacted and carried -on by OPERATOR at the following subject property location, 2400 Pullman Street, Santa Ana, CA 92705. 1. 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 Required. 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. 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. B. 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. 4 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: HNHPC, Inc., d.b.a. Catalyst - Santa Ana ATTN: Elliot Lewis, CEO 6700 Pacific Coast Highway, Suite 201 Long Beach, CA 90803 Copies to: HNHPC, Inc., d.b.a. Catalyst - Santa Ana ATTN: Store General Manager 2400 Pullman Street, Santa Ana, CA 92705 Damian Martin, Esq. 6700 Pacific Coast Highway, Suite 201 Long Beach, CA 90803 Email: damian.martin.esq@gmail.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- 7 A-2017-369-36 IN WITNESS WHEREOF, the parties hereto have executed this AGREEMENT the date and year first above written. ATTEST: DAISY GOME Clerk of the C uncil APPROVED AS TO FORM: SONIA R. CARVALHO City Attorney By: � m;4 Jose Montoya Deputy City Attorney CITY OF SANTA ANA -55�--- �1 V �— �� KRISTINE RIDGE City Manager OPERATOR LEGAL NAME: HNHPC, Inc., a California corporation, d.b.a. Catalyst- Santa Ana SIGNATORY NAME: Elliot Lewis TITLE: CEO & CFO TAXPAYER ID: 47-3475691 Git FOR APPROVAL: Signature' Minh Thai, Executive Director Planning & Building Agency Exhibit A — Community Benefit and Sustainable Business Practices Business Philosophy and Commitment to Employees Consistent with our "Weed for the People" motto and business model, our Company has set forth an Employment Plan that we are confident will meet and exceed the requirements set forth by City. Our company believe professionalism, checks and balances, and commitment to its employees and the surrounding community. The Company has taken a lead role in setting and implementing quality standards in service to its employees and the community it serves that can serve as best practices for other aspiring cannabis entrepreneurs. On that note, we consider the employees to be our most valuable resources and the local community to be our most important stakeholder. As such, our Company will offer employee training and continuing education to ensure our staff is knowledgeable about customer service, as well as trends and information on the cannabis products we carry. It is our intention to have a locally diverse, well-educated, and knowledgeable staff from social equity backgrounds. Training shall include topics such as, but not limited to: (i) Applicable local and State rules and regulations; (ii) safe handling of cannabis and cannabis products, including an overview of common industry hazards, current health and safety standards, and cannabis storefront retailer best practices; (iii) guidelines provided by the City and State, (iv) METRO, the State's track and trace system; (v) proper use of security measures and controls adopted to prevent diversion, theft, or loss of cannabis products; (vi) legal requirements for remaining compliant as a licensed employee; regulatory inspection preparedness; (vii) law enforcement interaction; (viii) diversity, including gender identity, racial equity, and inclusivity; and (ix) HR policies. Our Company is an equal opportunity employer, looking to invest in the local community. Our Company is committed to providing a living wage to employees and will ensure our wages are in compliance with the current minimum wage as adopted by the State. Our Company will make group health benefits available to full-time employees who work 30+ hours a week. Pursuant to its desire to provide a "living wage", our Company shall contribute at least $1.25 per hour or $2,500.00 per year per employee. Part-time employees will also be given an opportunity to participate partially in health group benefits after being employed for at least six months. All employees will receive details about benefits provided, contribution rates, and eligibility in their hiring packet. We hope to continue to hire people in from the Santa Ana Area. We will do this by looking to participate in local job fairs and through our social media presence which will allow interactions for people in the community looking for work. Our goal is to look to have 50% of our staff be residents of the City of Santa Ana. COMMUNITY OUTREACH Appointment of a Community Liaison Our Company shall appoint a Community Liaison (hereinafter, the "Liaison") to educate and actively engage with the community and be the original point of contact for any concerns that may arise from the community. Our Liaison will be responsible for the day-to-day management of our Community Benefits & Investments Plan, working with management on putting together the Page 2 of 5 Exhibit A — Community Benefit and Sustainable Business Practices program's operational budget and establishing a system for tracking and reporting on its performance. Our Liaison's contact information shall be made readily available both via the Company's website and shall be on file with the City. Interested Parties Quarterly Meeting & Advisory Board Our Liaison will host quarterly open houses at our cannabis retail business to adults over the age of 21 to engage the community, provide transparency about our operations, and receive continuous feedback so we can better serve the local community. The open house event will give community members an opportunity to discuss costs, benefits, and other community issues related to commercial cannabis and our Company's cannabis retail business. These quarterly meetings will allow the community to express any grievances they feel that may impact the cost of the nearby community from a financial standpoint, while giving our Company the opportunity to discuss the benefits our Company's cannabis retail business will bring, both from a monetary standpoint and being a role model as a pillar of safety for the community. Our open houses will also be an open forum to discuss any potential issues that the community feels could be an issue to the community and how our Company can work to resolve these issues and improve upon anything that is requested by the community. Members of the community, local business owners, law enforcement, city officials, and other interested parties will be invited to attend the quarterly meetings. In addition to the quarterly meetings, our Liaison will create an advisory board consisting of reputable members of the local community and cannabis industry to advise our Company and ensure that our Company has continued input from the community and leaders within the industry, as well as expert lmowledge of the ever growing and evolving cannabis field. With the establishment of the advisory board, our Company will use the quarterly meetings to discuss areas of improvement within the community and ways we can help, whether it is in the form of monetary donations or volunteer efforts from our employees. Through this advisory board and meetings will be another way for us to work with local organizations in hiring people for our location. Engagement with Local Nonprofits and Community Organizations In line with our "Weed for the People" motto and business model, engagement with local nonprofits and community organizations is a critical component of our Company's Community Benefits & Investments Plan. Embedded at the core of Our Company's team is a mission of service, sustainability, and community involvement. Our Company works with local charitable organizations in order to address the community's needs. Through our statewide partnership with non profit Music Changing Lives, Catalyst Cannabis Co is engaging our community throughout Southern California in different programs including food and clothes distributions, toy drives, art murals, and virtual music and art enrichment programs for underprivileged and at risk youth 5 years and older. Moreover, we will continue to incentivize our employees to volunteer with preferred organizations Page 3 of 5 Exhibit A — Community Benefit and Sustainable Business Practices setting a target of at least 200 community services hours per year through our Catalyst Cares initiative. We currently donate volunteer to (and/or plans to expand its participation with the following organizations: A. Orange County Labor Federation Food Distribution B. Orange County NORML C. Veterans Cannabis Coalition D. Breast Cancer Angels Expungement Clinics Our Company is committed to helping individuals impacted by the Drug on Wars overcome obstacles to employment regardless of whether such individuals end up working for our Company. One such obstacle is criminal records. Employees of the active, licensed (C 10-0000227-LIC, C 10- 0000230-LIC, CIO-0000376-LIC, C10-0000525-LIC, and C10-0000364-LIC) cannabis retail businesses owned and/or operated by Owner / CEO, Elliot Lewis have been actively engaged with criminal record expungement clinics co -hosted by UFCW Local 324 and the Orange County Labor Federation hosting two expungement/record clearing the Fall of 2020 and Spring 2021, and will continue to host such events on a quarterly basis. Public Education & Awareness Our Company will create a public awareness campaign for responsible cannabis consumption by sponsoring free on and off -site workshops and seminars to the general public on topics related to responsible cannabis use as well as legal and policy updates regarding commercial cannabis. By becoming embedded into the fabric of the community, our Company will seek to emerge as a touchstone for reliable information and a trusted partner to the community's residents. Below is a sample of the types of educational materials our Company intends on disseminating: • Factsheets utilizing photographic examples and written descriptions, charts and graphs that discuss topics pertaining to medical cannabis qualifying conditions and other information relevant to the consumption of cannabis and cannabis infused products. Management will work with cannabis -knowledgeable medical professionals to compose and update instructional guidance on test dosing; distinguishing by the type and method of medication to be consumed by qualified patients. The instructional guide / educational materials will include directions on how to keep a medical cannabis journal allowing the patient to generate anecdotal evidence on what type and strain works best for their condition. This will be made available to our trained employees in addition to being available on our website. Page 4 of 5 Exhibit A — Community Benefit and Sustainable Business Practices A section of our Company's age -verified website will be designated for educational purposes maintaining a weekly blog with the latest news regarding health, technology, updates to state and federal laws, links noteworthy scientific articles, and customer testimonials. The website will include a designated portal where visitors are encouraged to leave feedback and ask questions. The main purpose of the "listening corner" is to listen and find ways to be responsive. Our Company will be able to post real time responses to queries and encourage an open dialogue between all participants. Goals It is our belief that cannabis businesses have an obligation to the health and well being of their customers as well as the communities in which they operate. The City of Santa Ana has a rich history, one that we can honor by being an upstanding corporate citizen and giving back to the community. We believe this effective interaction and dialogue can help to change the perception of an ever -evolving industry like cannabis. Our goal is to create a long-term, mutually beneficial relationship with the City of Santa Ana. City Impact Fee The dispensary has created a great economic impact for the City of Santa Ana. HNHPC, INC commits to continuing to pay any and all fees established by the City of Santa Ana, to be paid in a direct and timely manner to the City to satisfy this obligation. Page 5 of 5