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OPERATION OF A MEDICAL MARIJUANA COMPASSION CENTER

Application Submitted by Greenleaf Compassionate Care Center, Inc.

CRITERIA 1: Submission of Required Information Regarding Applicant & Facility

Measure 1: The applicant shall provide the proposed legal name and the following
documents applicable to the applicant’s legal status

The proposed legal name is Greenleaf Compassionate Care Center, Inc.

The Certificate and Articles of Incorporation and By-Laws for this non-profit corporation are
provided at ATTACHMENT 1.

Measure 2: The applicant shall provide the proposed physical address(es) of the
compassion center, if a precise address has been determined. This shall also include any
additional address(es) to be used for the secure cultivation of medical marijuana

The proposed physical address of Greenleaf is 200 High Point Avenue, Unit B-6, Portsmouth, RI
02871

A five year lease document is provided at ATTACHMENT 2. This lease has been signed by the
Landlord, who has been fully apprised of all aspects of GCCC’s operation, and believes in the
mission of a compassionate care center. The site is suitable for both cultivation and dispensary
activities. The site is inconspicuous, with ample parking, in a non-public, non-storefront and
secure setting, making it suitable for a dispensary and ideal for horticultural operations. GCCC
wishes to know whether the State would like its first dispensary located in any particular area of
the state, and is willing to locate this aspect of operations wherever the State requires. The
horticultural portion will be at this site.

Measure 3: The applicant shall provide evidence of compliance with the local zoning laws
for each physical address to be utilized as a compassion center or for the secure cultivation
of medical marijuana. If the current zoning is not appropriate for a given physical address,
please identify any required zoning variance(s) and the applicant’s actions taken to date to
obtain such approval(s) and/or variance(s).

Greenleaf has provided a zoning map of Portsmouth that “circles” the location of our facility
(ATTACHMENT 3). 200 High Point Ave is located in a “light industrial” zone. Agriculture
and Horticulture are permissible uses for properties zoned Light industrial. We have also
included email correspondence from the Portsmouth zoning officer agreeing with this statement
(ATTACHMENT 4). As stated above, while the expectation is that the dispensary will be
located at this site, GCCC is flexible if the Department of Health has a preference for the
physical location of the dispensary in another part of the state. GCCC would be willing to
consider relocating its dispensary operations to this Portsmouth site at such time as the State
elects to grant additional licenses.

Measure 4: The applicant shall provide evidence that all of the physical addresses provided
in response to Measure 2 are not located within five hundred feet (500’) of the property line
of a preexisting public or private school.

Please see the to-scale G.I.S. zoning map at ATTACHMENT 3 provide by Gary Crosby, zoning
officer for the Town of Portsmouth. None of the facilities or property lines with in the 1000’
diameter black circle, which is centered over our facility, belong to schools public or private.

Measure 5: The applicant shall provide a description of the enclosed, locked facility that
would be used in the cultivation of marijuana, including steps to ensure that the marijuana
production shall not be visible from the street or other public areas.

Our cultivation and dispensary facilities are located at 200 High Point Avenue. This facility is a
2,400 sq/ft one-story unit constructed on a concrete slab. It is a rigid metal framed industrial
(“box”) facility with several adjoining units. There are no doors or hallways connecting one
unit to the next. The ceiling is 17 feet in height, and our unit has not yet been partitioned into
individual rooms. Unit B-6 is not an end unit and has only front and rear exterior walls. The
front side has one entrance way and several large plexiglass windows.

Within the interior, Greenleaf will install metal slat roll-down shutters that cover all windows at
all times. Roll-down shutters eliminate windows and doors as modes of egress, and they
eliminate any interior lines of site. The rear of the building has a large garage door constructed of
durable steel and one metal door with two deadbolt locks. The garage and rear doors are located
in an alley way that is not used for customer parking and is not a right of way for local traffic.
To further eliminate visibility of the product, which will be cultivated at the rear of the facility,
we will erect free standing L-shaped walls for the rear doors (see floor plan at ATTACHMENT
5). There will be no exterior lines of site to our cultivation rooms.

Measure 6: The applicant shall provide the name, address and date of birth of each
principal officer and board members of the compassion center.

Principles

Seth Bock – Chief Executive Officer


DOB: 08/08/1972
Address: 565 Wolcott Ave., Middletown, R.I. 02842

Dennis Reid, R.Ph. – Compliance Officer


DOB: 02/26/1960
Address: 45 Goldenrod Drive, Middletown, R.I. 02842

Bruce Vanicek – Chief Horticulture Officer


DOB: 03/02/1964
Address: 201 Harris Ave., Portsmouth, R.I. 02871
David Cunningham, M.D. – Chief Medical Officer
DOB: 1961
Address: 850 Aquidneck Ave, Middletown, R.I.

Richard Radebach, M.A. – Chief Financial Officer


DOB: 12/13/51
Address: 2077 East Main Road, Portsmouth, RI 02871

Board Members

Mervin Woolf, M.D.


DOB: 10/08/1952
Address: 69 Bay View, Avenue, Portsmouth, R.I. 02871

Gay Ben Tre, D.A., R.N.


DOB: 12/20/1947
Address: 159 Gibbs Avenue, Newport, R.I. 02840

Robert Donahue
DOB: 09/23/1957
Address: 41 Division Street, Newport, R.I. 02840

Linda Phelan
DOB: 02/21/1961
Address: 272 Mitchell’s Lane, Middletown, R.I. 02842

Julie Stapleton
DOB: 12/19/1972
Address: 565 Wolcott Ave., Middletown, R.I. 02842

Richard Radebach, M.A. – (see above)

Patrick Rimoshytus – patient advocate


DOB: 11/25/1969
Address: 19 Ridgeway Drive, Warren, R.I. 02885

Seth Bock, D.A. (See above)

Dennis Reid, R.Ph (See above)

Eric Archer, J.D.


D.O.B.: 04/19/1962
Address: 20 Ocean Avenue, Jamestown, RI 02835

Measure 7: The applicant shall provide a draft operations manual which demonstrates
compliance with §5.1.8 of Rules and Regulations Related to the Medical Marijuana Program
[R21-28.6-MMP].
Please see ATTACHMENT 6.

Measure 8: The applicant shall provide a list of all persons or business entities having
direct or indirect authority over the management or policies of the compassion center.

Greenleaf is under the sole authority of its Board of Directors and Officers, as listed below.

Officers
Seth Bock, D.A. – Chief Executive Officer
Dennis Reid, R.Ph. – Compliance Officer
Bruce Vanicek, B.S. – Chief Horticultural Officer
David Cunningham, M.D. – Chief Medical Officer
Richard Radebach, M.A. – Chief Financial Officer

Board of Directors
Seth Bock, D.A.
Dennis Reid, R.Ph.
Mervin Woolf, M.D.
Gay Ben Tre, D.A., R.N.
Robert Donahue
Linda Phelan, L.M.T.
Julie Stapleton, D.A.
Richard Radebach, M.A.
Patrick Rimoshytus
Eric Archer, J.D.

Measure 9: The applicant shall provide a list of all persons or business entities having five
percent (5%) or more ownership in the compassion center, whether direct or indirect and
whether the interest is in land or building, including owners of any business entity which
owns all or part of the land or building.

Greenleaf is a Rhode Island not-for-profit corporation established exclusively for the purposes of
this application. Greenleaf will issue no stock or ownership stake and will not operate for the
profit of investors or officers of the company. The principals of Greenleaf will receive a salary
set by the Employee Compensation Committee of the Board of Directors, which will consist of
all Directors who are not employed by Greenleaf, as approved by a majority vote of the full
Board of Directors including any paid employees thereon. No investors in GCCC will be
compensated by any share of profit, and all outside start-up monies accepted by Greenleaf will
be in the form of loans with a preset rate of return, such loans to be in full compliance with all
lending laws including the law of usury Lenders shall be prohibited from acquiring an equity
stake in GCCC in the future, or in the management authority over, the business, unless such an
arrangement is specifically disclosed to and approved by the RI Department of Health.

The owner of the building and land upon which the business is sited is Gateway Limited
Partnership, Robert Kielbasa, General Partner. Our relationship with the Landlord and the terms
of the lease are such that the landlord will finance the costs of initial leasehold improvements,
the ultimate cost for which are to be reimbursed by GCCC.

Measure 10: The applicant shall provide the identities of all creditors holding a security
interest in the premises, if any.

Bank RI holds a first position mortgage, including an assignment of rents and leasehold
improvements, a copy of which is will be available upon Health’s request. Counsel has reviewed
the terms of the Mortgage and Security Agreement and has confirmed that this use, and this
lease, is permitted thereunder.

Measure 11: The application shall include the required application cover sheet and
attestation statement signed by the chief executive officer of the applicant entity or other
individual authorized to make legally binding commitments on behalf of the applicant.

Please see cover page of this application.

Measure 12: The applicant shall provide a description of how the compassion center will
operate on a long-term basis as a not-for-profit entity and a business plan that includes, at
a minimum, the following:

The applicant shall provide a detailed description about the amount and source of the
equity and debt commitment for the proposed compassion center.

Greenleaf has secured $400,000 in non-institutional loans that will be repaid quarterly with a
18% rate of interest accrual over a 5 year term. By agreement with the Lenders, the interest
payments required under such notes shall be a priority over salary obligations of the company.
Lenders shall hold no collateral interest in inventory. A list of investors is available to Health
upon request.

The immediate and long-term financial feasibility of the proposed financing plan

Greenleaf’s secured financing assures sufficient working capital to sustain operations for the
ramp-up and first full fiscal years of the program. Based upon anticipated 12 month gross
receipts, Greenleaf projects revenues of $295,920 and $816,160 respectively in each of these
years.

Month one start-up costs that include construction, equipment, furnishings, rent, utilities, salaries
and additional expenses are approximately $207,000. Thereafter, our month fixed expenses are
approximately $11,000; not including loan repayments and executive compensation. These
expenses can be limited and/or deferred, depending on gross receipts.

The relative availability of funds for capital and operating needs

As noted previously, Greenleaf has secured $400,000 in funds for capital and operating
expenses. Having met our fund raising objectives, we are developing second-tier investment
opportunities that may be initiated after award of a registration certificate. This contingency will
become available, should projected gross revenues fall below expectations.

Greenleaf has based its gross receipt projections on a broad range of performance metrics applied
to numerous medical marijuana operations in multiple states. We anticipate a growth rate of ten
new patients per month. Consumption statistics suggest that the average patient consumes
approximately 16 ounces of medical marijuana per year. At an average price point of $35/eight
ounces, this equates to sales of $373/month per patient and $3,730/month per 10 patients.

The applicant’s financial capability.

We have provided a copy of our complete business plan, including job descriptions and
abbreviated resumes for each employee, as an appendix to this application. For more details
about our expense and growth projections please see ATTACHMENT 7.

The applicant shall provide a copy of their proposed policy regarding charity
care/servicing indigent patients.

The Chief Financial Officer shall generate a board approved process and procedure to ascertain
those patients for whom the costs of medical marijuana may be prohibitive, based on FAFSA
(Federal Financial Aid) criteria and utilizing readily available FAFSA online calculators. Excess
revenue above that necessary to fund debt payments, salary and operating expenses will be
allocated to ensure that no customers demonstrating need are barred from access to GCCC’s
medical marijuana. GCCC will give assistance to qualifying customers so that no eligible
customer with need shall be required to pay more than 10% of an applicant’s “Expected Family
Contribution” as determined by such FAFSA process.

Please see next page for our projected income statement


RAMP UP FIRST FULL SECOND FULL
Greenleaf CCC YEAR FISCAL YEAR FISCAL YEAR
2010 2011 2012
REVENUE:
Medical Marijuana sales
to registered qualifying
patients $ 59,600 $ 514,320 $ 925,866
Other supplies sold to
registered qualifying
patients $ 5,000 $ 12,000 $ 12,000
Other revenue sources
$ n/a $ $

TOTAL REVENUE $ 64,600 $ 526,320 $ 937,866


EXPENSES:
Staff Payroll w/Fringes $ 62,490 $ 149,976 $ 149,976
Medical Marijuana
growing & processing $ 5,000 $ 12,000 $ 12,000
Supplies $ 5,000 $ 12,000 $ 12,000
Office Expenses $ 1,500 $ 3,600 $ 3,600
Utilities $ 6,000 $ 18,000 $ 20,400
Insurance $ 1,370 $ 3,290 $ 3,290
Interest $0 $ 102,000 $ 72,000
Depreciation/Amortization $ 13,000 $ 44,306 $ 32,000
Leasehold Expenses $0 $0 $0
Bad Debt $0 $0 $0
TOTAL EXPENSES: $ 94,360 $ 345,172 $ 305,266
DIFFERENCE: $ (29,760) $ 181,148 $ 632,600

Number of Patients 50 170 290


Number of Visits 270 2760 5640

The applicant shall identify the total number of FTEs (full time equivalents) and the
associated payroll expense (with fringe benefits) required to staff the proposed
compassion center.

Ramp Up Year 2010 First Full Fiscal Year 2011


Personnell # OF FTES PAYROLL W/ # OF FTES PAYROLL W/
Category FRINGES FRINGES
Horticulture #2 $ 41,660 #2 $ 99,984
Dispensary #1 $ 20830 #1 $ 49,992
TOTAL: # 3 $ 62,490 #3 $ 149,976
CRITERIA 2: Overall Health Needs of Qualified Patients and Safety of the Public

Measure 1: The applicant shall document how their proposed location for a compassion
center is convenient to patients from throughout Rhode Island.

Greenleaf has chosen the Town of Portsmouth as an initial base of operations. Our strong
personal and professional ties with Newport County make it the logical area from which to
quickly launch this new venture.

In regard to patient convenience, Greenleaf will build upon its early local success and reach out
to patients in other regions of the State. The ability of any cardholder to access Greenleaf
Compassionate Care Center is vital to this new program. As noted previously, we have secured a
location with full town approval for the cultivation component of this operation. We also believe
this site to be an ideal location for the compassion center; having ample parking, easy
geographical accessibility, single floor access to handicapped patients, minimal total elevation
gain from parking lot and curb cuts.

We have evaluated the general population demographics in the State. Providence County has the
largest population base with 621,000 residents. Kent County has the second largest population
base with 167,000 residents. Our Portsmouth site is unique in that it sits in relatively close
proximity (25 minutes driving time) to three counties (Newport, Bristol, and Washington) and
the City of East Providence. Newport County can also be distinguished from the “mainland”
counties of Rhode Island in that it includes some of the most remote corners of the State. For
residents of Little Compton, Tiverton and Middletown, for example, a journey to Providence can
take up to an hour. We estimate there to be over 220,000 residents for whom a trip to our
Portsmouth facility would be convenient.

All else being equal, should the State determine that our proposed location is not feasible, we
would entertain relocating the dispensary to another location.

Measure 2: The applicant shall demonstrate an ability to provide a steady supply of


medical marijuana to registered qualifying patients.

The applicant shall provide a start-up timetable which provides an estimated time from
issuance of an authorization for operation to limited operations to full operation, as well as
the basis for these estimates.

Start up timetable
• Issuance of an authorization for operation:-------------------------------------------07/21/10
• Notification of quantity of patients:----------------------------------------------------08/21/10
• Begin cloning in accordance with number of patients:------------------------------08/21/10
• Clones rooted and transferred to vegetative stage:-----------------------------------08/31/10
• Vegetative stage complete, transferred to flowering stage:-------------------------09/28/10
• Flowering complete, harvest, trim and begin drying:--------------------------------12/14/10
• Drying complete, begin curing process:-----------------------------------------------12/21/10
• Curing complete, medicine available to patients: ------------------------------------01/11/10
These estimates are derived in part from our horticulturalist’s experience as a registered care
giver and from industry research we have examined. Completion of the production schedule will
fluctuate depending on the individual strains. These are conservative estimates. Future crops
will be harvested on monthly intervals in accordance with the number of patients signed up with
Greenleaf. Full operation will be attained seven months from issuance of authorization and room
for expansion is available should the need arise. According to provisions set forth in the Rules
and Regulations Greenleaf may also acquire medicine for distribution prior to harvest of our first
crop.

The applicant shall describe their knowledge of (and experience with) organic growing
methods to be used in their cultivation of medical marijuana.

Besides a formal education in horticulture and floriculture, Bruce Vanicek, our horticulturalist,
comes from four generations of nursery owners. This growing experience and educational
background form the basis of knowledge of growing production systems, principles of best
organic growing practices and integrated pest management. As a caregiver, this process has been
implemented in the growing of medicinal marijuana. These procedures include but are not
limited to: propagation and cloning techniques without using rooting hormones, water
purification and maintenance of crop specific ph levels, spacing and ventilation systems, overall
climate control, as well as lighting to maximize plant health and yield. Cultural practices such as
these, cleanliness procedures, as well as limited access to the grow area minimize potential
introduction of pathogens or insects. In the event of an infestation, control can be achieved using
organic treatments. potassium salts of fatty acids, proper rates and combinations of natural
horticultural oils and biological controls such as the use of beneficial predatory mites and insects
will ensure a successful crop. Continued exposure to the latest organic products, procedures, and
access to a network of professionals from the organic nursery industry will allow for continued
transfer of knowledge into this medicinal venture as well as immersion into the community of
medicinal marijuana growers.

The applicant shall describe steps that will be taken to ensure the quality of the medical
marijuana, including purity and consistency of dose.

Clones will be donated by experienced qualified caregivers. The clones will be accepted only if
they are pest free, true to name, and verified healthy. Quality, purity, and consistency of dose
will be achieved by using the tools and growing procedures outlined above. In particular the
following areas will be emphasized to maximize these objectives.

• Implement the proper production system with procedures to ensure the execution of that
system.
• Create a climate control system with the ability to manipulate any element of that
environment.
• Select proper clones.
• Emphasize plant health as a means of creating quality medicine.
• Develop consistency in procedures on a day to day, week to week and month to month basis.
• Microscopically evaluate trichome quality, quantity, and maturity prior to harvest.
• Create procedures and oversight for consistent bud trimming techniques.
• Implement proper drying and curing technique through monitoring of moisture content.
• Verify weight with scientific, calibrated scales.
Measure 3: The applicant shall document experience running a not-for-profit organization
or other business(es).

Greenleaf has carefully selected its management officers, board of directors and legal/operational
consultants to ensure our quality, trust and success in a non-profit framework. Our team includes
members of the business and healthcare community that have succeeded in a variety of
healthcare enterprises, as well as a patient advocates, for example.

Seth Bock, D.A. has owned and operated a successful wellness center in Newport County for
almost ten years. During this time, Newport Acupuncture and Wellness Spa, Inc. has provided
over 40,000 treatments in numerous modalities, including acupuncture, Chinese herbal medicine
and massage therapy. Newport Acupuncture employs ten staff and has won “Best Of” awards
from Newport Life Magazine as well as a Newport County Chamber of Commerce “Best
Business” award in 2009.

Dr. Bock has been a Rhode Island leader in the promotion and advocacy of alternative
medicines. The organizations he has worked with and or presented to include the following:

• Salve Regina department of Holistic Counseling


• CCRI School of Massage Therapy
• CCRI Massage Therapy Advisory Board
• Edward King House
• Dana Farber Cancer Institute – Alternative Therapies Task Force
• Newport Hospital
• Innerlight Center for Yoga
• Newport Library
• The Healing Co-op
• New England School of Acupuncture Institutional Review Board

Dennis Reid, R.Ph. is a licensed pharmacist in the states of Rhode Island and Massachusetts in
good standing since 2002. He has practiced throughout the state in community pharmacy settings
with the retail chains of Walgeens and Target pharmacies. On the front lines of interacting with
the public as to their pharmaceutical needs he has witnessed the medicinal benefits of patients
utilizing medical marijuana in their healthcare therapies.
As an employee of Lifespan he has also worked at R.I. Hospital and Hasbro Children’s Hospital
emergency departments in the capacity of medical technician.
A lifelong resident of the R.I. and graduate of Rhode Island College and the University of R.I. he
has strong professional and family ties throughout the state. He is also an active board member
of Newport Green Condo Association recently spearheading their annual financial review.

David Cunningham, M.D. is a local family physician. He was the former chairperson for the
Newport Hospital board of directors between 2004 and 2006 and continues to serve the board.
He is also a co-founder of Costal Medical, Rhode Island’s largest primary care group, medical
director of Forrest Farm HCC and Beacon Hospice. Dr. Cunningham is on the Board of Trustees
for the Newport County Boy’s and Girl’s Club and is an incorporator for Bank Newport.

Bruce Vanicek, is the president of Rhode Island Nurseries, a large-scale nursery that has been in
business for over 100 years. In addition to running his family nursery, he is also a Caregiver in
the Rhode Island Medical Marijuana Program. Bruce serves on the board of directors for Child
and Family Services of Newport County - a non-profit organization that helps strengthen
families and provide community services.

Eric Archer, J.D., We selected our legal counsel for his expertise in small business law. He is
the former Director of Development at Roger Williams University School of Law and currently
serves as Advisory Counsel for the Naval War College Foundation and is the founder and Chair
of Jamestown Community Farm, both non profit entities and has worked with various
philanthropists who have established charitable organizations over his 25 years of practice,
including those that must comply with 501(c)(3) requirements. If Greenleaf is awarded this
permit we will offer Mr. Archer a seat on our board of directors.

Linda Phelan, L.M.T. Linda has a bachelors in Cellular Biology and is a Licensed and Board
Certified Massage Therapist in the state of Rhode Island. She is also a health educator, public
speaker and frequent grant writer for her non-profit. She is the Founder and Executive Director
of The Healing Co-Operative, Inc. Rhode Island’s first and only free nonprofit center dedicated
to the support of women with cancer & their families since 1996. The Healing Co-op serves
Aquidneck Island, Tiverton and Jamestown as primary constituents and the remaining Rhode
Island areas secondarily. This project is of particular interest to her as a 20-Year Cancer
Survivor.

Richard Radebach, M.A. is the President of The Wellness Company, an ancillary care provider
located in Providence. His 10 year old business provides a variety of health and wellness
screenings, as well as immunizations to employers and individuals in communities throughout
Southern New England. The Wellness Company has partnered with Health since 1991 to
administer the nationally recognized Vaccinate Before You Graduate program. In 2009, his
organization received the National Influenza Vaccine Summit Immunization Excellence Award
from the American Pharmacists Association.

Pat Rimoshytus has a long history of community service including having served as a Newport
Firefighter and EMT for 14 years. He is currently enrolled in nursing school at CCRI after being
forced to retire due to injury sustained while fighting a fire. His injury was a ruptured disk at
L4/L5 resulting in fusion surgery which left him with permanent left sciatic nerve pain. He has
been a medical marijuana patient since 2008. Without the addition of this medication to his
treatment, his quality of life and ability to continue employment would have been severely
diminished if not impossible. The use of medical marijuana has reduced the amount of narcotics
has needed. He looks forward to serving on the board of Greenleaf Compassionate Care Center
because he is a strong supporter of the RI medical marijuana program and the medical marijuana
community.

Measure 4: The applicant shall document a plan for record keeping and security which
shows an understanding of the types of records that shall be considered confidential health
care information under Rhode Island law and are intended to be deemed protected health
care information for purposes of the Federal Health Insurance Portability and
Accountability Act of 1996, as amended [HIPAA].

It is of utmost importance to the execution of our mission that all Greenleaf employees and
agents maintain full compliance with Rhode Island health care information law and the Federal
Health Insurance Portability and Accountability Act. To this end we have retained Dennis Reid
as overall compliance officer. Dennis, in conjunction with the CEO and CMO, will design and
implement a HIPAA training and testing program for all employees, agents and directors.

It appears as that the State has not formally addressed the question of whether it will share the
names of patients that have recently appointed a compassion center as one of their caregivers.
However, under the “Application and Responses” section of the Medical Marijuana Program
web-site, the Office of Health Professional Regulation has determined the following:

“HEALTH interprets the requirements of §§4.7.4 and 4.8 of the Rules and Regulations Related to the
Medical Marijuana Program as not allowing a compassion center to function as a primary caregiver for a
qualifying patient until such time as the compassion center is notified by HEALTH that the qualifying
patient’s request to add them as a primary giver has been processed by HEALTH.”

This suggests that compassion centers will be provided with patient specific identifiers. To the
degree that this is accurate, all patient specific identifiers, including but not limited to: name;
card number; date of birth; address; phone number; email address; or diagnosis as provided by
the Stat, will be recorded only on our access controlled medical software.

It is essential that we maintain, at a minimum, enough identifying information to validate a


patient under our care at the point of entry to our facility. Patients will be required to present
their cards before entry, and we will have in our medical records, at a minimum, their M.M.P.
I.D. number. When a new patient visits our facility for the first time, we will ask them to sign
our HIPAA / Confidentiality Statement. They may at that time ask us to remove all but their I.D.
from our records.

From that point forward, we will protect all identifying patient information and may not use or
disclose any individual patient's health information except for helping them secure an
appropriate medicine, for payment purposes, or regular dispensary operations. Any additional
uses of a patient's health care information would require an advanced authorization signed by the
patient.

Our security system includes video cameras that will record our center around the clock and
video will be stored in our system for at least 30 days. For security purposes, our system will
have sufficient resolution for recognition of all patients entering our facilities. Much like a bank,
we will not permit entrance to people wearing sunglasses, hoods and apparel that diminish our
staff’s ability to positively confirm the cardholder. Our video will be held in a secured/ pass-
code protected video hard drive. After 30 days our system will automatically delete all video
recordings. Our HIPAA / Confidentiality Statement will inform patients of our video
surveillance policy.

Our staff, directors and agents will be required to pass the HIPAA test entitled HIPAA: Privacy
Essentials for the Physician’s Office, which is provided by the Ohio University College of
Osteopathic Medicine located and is located on-line at: http://www.ouwb.ohiou.edu/hipaa/ohic-
oucom/pages/resources.htm
To most effectively address our patient’s privacy, we will establish process/policies and
procedures to address the following privacy matters:
• Appoint a privacy officer or assign privacy officer duties to a specific staff member.
• Develop a notice of privacy, including an acknowledgement form.
• Define who can access and who cannot access protected health information (PHI).
• Institute a policy allowing patients to access their medical records
• Establish a procedure to allow patients to amend their medical records.
• Create a procedure to document all non-authorized disclosures outside of payment,
compassion center operations.
• Develop audit trails to provide patients with a listing of all who accessed or received
information from their records.
• Establish a protocol that states release of only the minimum information necessary, where
applicable.
• Review information security including passwords and access to information.
• Revise our authorization form to include the specific HIPAA language on a regular basis to
share with the Department of Health as requested.
• Identify a full list of all of our business associates, customers, vendors, lenders, share with the
Department of Health as requested and within the guidelines of HIPAA.
• Establish a complaint policy

Measure 5: The applicant shall provide an acceptable safety and security plan, including
staffing and a detailed description of proposed security and safety measures which
demonstrate compliance with §5.1.7 of Rules and Regulations Related to the Medical
Marijuana Program [R21-28.6-MMP].

The description shall also include a detailed floor plan for the compassion center, as well as
each additional address to be used for the secure cultivation of medical marijuana, which
indicates location and make/model # of security devices utilized. All responses to Criteria 2-
Measure 5 shall be submitted as a separate paper and electronic document which is clearly
marked OFFICIAL USE ONLY - SECURITY-RELATED INFORMATION -
WITHHOLD UNDER RIGL §38-2-2(4)(S).

The applicant shall also provide a plan to involve and coordinate with local law enforcement
authorities on security and safety issues, and identify the law enforcement officials contacted
during the development of this plan.

The applicant shall also provide a plan to involve and coordinate with local law
enforcement authorities on security and safety issues, and identify the law enforcement
officials contacted during the development of this plan.

A response to the requirements in Measure 5 is contained in the application materials under


separate and secured cover.

Measure 6: The applicant shall submit a description of their proposed program for
providing counseling and educational materials regarding methods of administration and
research studies on health effects of medical marijuana to registered qualifying patients
and their registered primary caregivers.
Greenleaf has appointed and will train our pharmacist, Dennis Reid, to be our on-site resource
for patients needing counseling and education about the pros/cons of medical marijuana,
methods of administration, and current research. As there is no officially approved training
course in administration of medical marijuana, Greenleaf will endeavor to identify and
consolidate a variety of resource materials.

Dennis was an attendee of “The Sixth National Clinical Conference on Cannabis Therapeutics”,
where he compiled significant materials for our counseling and training program. He will also
attend regular monthly RIPAC meetings to stay abreast of current issues and advances in the
medical marijuana industry and community.

CRITERIA 3: Community Input at Public Hearing

Measure 1: Input from qualifying patients regarding which applicant should be granted a
registration certificate to operate a compassion center.

Greenleaf looks forward to the public hearing as an opportunity to introduce our compassionate
care center and to connect our vision with the needs of the patient and caregiver community. We
believe that our model will resonate with both Health and the Rhode Island public.

Measure 2: Input from the city(s) or town(s) where the applicant’s compassion center and
facilities for secure cultivation of medical marijuana would be located.

Greenleaf management has met with the Portsmouth Police Chief, the Portsmouth Town
Administrator and Zoning Officials to gather their input about our proposed entity. We welcome
their public input on the merits of our organization and efforts.

Measure 3: Input from the general public regarding the suitability of the applicant and
proposed location(s) for both a medical marijuana compassion center and additional
address(es) to be used for the secure cultivation of medical marijuana.

Greenleaf recognizes that broad public support is instrumental to a successful launch of our
compassionate care center, as well as to its growth throughout the State. We appreciate the
magnitude of Health’s effort to create this program and make it available to the public statewide.
We also believe that Greenleaf represents the best opportunity to carry this vision forward.
BYLAWS OF

GREENLEAF COMPASSIONATE CARE CENTER, INC

ARTICLE I - NAME, PURPOSE

Section 1: Name. The name of the organization shall be GREENLEAF COMPASSIONATE


CARE CENTER, INC.

Section 2: Purpose. GREENLEAF CCC is organized exclusively for cultivation and distribution
of medical marijuana to registered card holder in accordance with: Rules and Regulations related
to The Medical Marijuana Program (R21-28.6-MMP).

ARTICLE II - MEMBERSHIP

Section 1: Membership shall consist only of the members of the board of directors.

ARTICLE III - ANNUAL MEETING

Section 1: Annual Meeting. The date of the regular annual meeting shall be set by the Board of
Directors who shall also set the time and place.

Section 2: Special Meetings. Special meetings may be called by the Chair or the Executive
Committee.

Section 3: Notice. Notice of each meeting shall be given to each voting member, by mail, not
less than ten days before the meeting.

ARTICLE IV - BOARD OF DIRECTORS

Section 1: Board Role, Size, Compensation. The Board is responsible for overall policy and
direction of Greenleaf Compassionate Care Center, Inc. The Board shall no more than 15 and not
fewer than 7 members. The board receives a minimum $2000 annual stipend and any increase
will be commensurate with other local nonprofit boards such as the R.I. turnpike Authority and
any other reasonable expenses.

Section 2: Meetings. The Board shall meet at least annually at an agreed upon time and place.

Section 3: Board Elections. Election of new directors or election of current directors to a second
term will occur as the first item of business at the annual meeting of the corporation. Directors
will be elected by a majority vote of the current directors.

Section 4: Terms. All Board members shall serve 2 year terms but are eligible for re-election.
Exclusion applies to initially appointed managers.

Section 5: Quorum. A quorum must be attended by at least 75% percent of the Board members
before business can be transacted or motions made or passed.
Section 6: Notice. An official Board meeting requires that each Board member have written
notice at least 14 days in advance.

Section 7: Officers and Duties. There shall be four officers of the Board consisting of a Chair,
Vice Chair, Secretary and Treasurer. Their duties are as follows:

The Chair shall convene regularly scheduled Board meetings, shall preside or arrange for other
members of the executive committee to preside at each meeting in the following order: Vice-
Chair, Secretary and Treasurer.

The Vice-Chair will chair committees on special subjects as designated by the board.

The Secretary shall be responsible for keeping records of Board actions, including overseeing the
taking of minutes at all board meetings, sending out meeting announcements, distributing copies
of minutes and the agenda to each Board members, and assuring that corporate records are
maintained.

The Treasurer shall make a report at each Board meeting. Treasurer shall chair the finance
committee, assist in the preparation of the budget, help develop fundraising plans, and make
financial information available to Board members and the public.

Section 8: Vacancies. When a vacancy on the Board exists, nominations for new members may
be received from present Board members by the Secretary two weeks in advance of a Board
meeting. These nominations shall be send out to Board members with the regular Board meeting
announcement, to be voted upon at the next Board meeting. These vacancies will be filled only
to the end of the particular Board member's term.

Section 9: Resignation, Termination and Absences. Resignation from the Board must be in
writing and received by the Secretary. A Board member shall be dropped for excess absences
from the Board if s/he has three unexcused absences from Board meetings in a year. A Board
member may be removed for other reasons by a three-fourths vote of the remaining directors.

Section 10: Special Meetings. Special meetings of the Board shall be called upon the request of
the Chair or one-third of the Board. Notices of special meetings shall be sent out by the Secretary
to each Board member postmarked two weeks in advance.

ARTICLE V - COMMITTEES

Section 1: The Board may create committees as needed, such as fundraising, research, charitable
donations, etc. The Board Chair appoints all committee chairs.

Section 2: The five officers serve as the members of the Executive Committee. Except for the
power to amend the Articles of Incorporation and Bylaws, the Executive Committee shall have
all of the powers and authority of the Board of Directors in the intervals between meetings of the
Board of Directors, subject to the direction and control of the Board of Directors.
Section 3: Finance Committee. The Treasurer is chair of the Finance Committee, which includes
three other Board members. The Finance Committee is responsible for developing and reviewing
fiscal procedures, a fundraising plan, and annual budget with staff and other Board members.
The Board must approve the budget, and all expenditures must be within the budget. Any major
change in the budget must be approved by the Board or the Executive Committee. The fiscal
year shall be the calendar year. Annual reports are required to be submitted to the Board showing
income, expenditures and pending income. The financial records of the organization are public
information and shall be made available to the membership, Board members and the public.

ARTICLE VI - AMENDMENTS

Section 1: These Bylaws may be amended when necessary by a affirmative vote of 2/3 majority
of the Board of Directors. Proposed amendments must be submitted to the Secretary to be sent
out with regular Board announcements.

ARTICLE VII- FINANCIAL ADMINISTRATION

Section 1: Fiscal year. The fiscal year of Greenleaf CCC shall be Jan. 1- Dec. 31

Section 2: Checks, Drafts, Etc. All checks, order for payment of money, warehouse receipt,
obligations, bills, bills of exchange, and insurance certificates shall be signed or endorsed by
such officers or agent of the Corporation and in such manner as shall from time to time be
determined by resolution of the Board of Directors.

Section 3: Loans. No loans shall be made by Greenleaf CCC, Inc. to any Board member.

Section 4: Investments. The funds of the Corporation may be retained in whole or in part in cash
or be invested and reinvested on occasion in such property, real, personal, or otherwise, or stock,
bonds, or other securities, as the Board of Directors in its sole discretion may deem desirable.

Section 5: Financial Reports. The Treasure shall provide financial reports to the board at least
quarterly that include, at a minimum, statements of income and expenditures for the year to date
and a balance sheet.

ARTICLE VIII- BOOKS AND RECORDS

Section 1: Maintenance and Safekeeping of Records. The Treasurer shall maintain and ensure the
safekeeping of accurate records of the activities and transactions of the corporation. The
Secretary shall maintain and ensure the safe keeping of other essential records of the corporation,
a copy of the Certificate of Incorporation, a copy of these Bylaws, the Permit to Operate a
Compassion Center, and all minutes of meetings of the Board of Directors.

These Bylaws were approved at a meeting of the Board of Directors of Greenleaf Compassionate
Care Center, Inc. on ( date).

Signed:______________________, Secretary
From: Gary R. Crosby [gcrosby@portsmouthri.com]
Sent: Friday, May 07, 2010 10:17 AM
To: Dr. Seth Bock; Robert G. Driscoll
Cc: dennis reid; Eric Archer
Subject: RE:

Dr. Bock -

I have reviewed the Zoning Ordinance and the documents restricting development activities in
the Industrial Park and believe I have an answer for you regarding your proposed business on
Highpoint Avenue. The restrictions for the Portsmouth Industrial Park were established in 1979
and set up to expire on Jan 1, 2007. There was a provision to extend the restrictions for a period
of ten years by vote of the Town Council, but there is no record of that vote being taken, so the
restrictions have lapsed and regulation of development activity falls to the Zoning Ordinance.

Article V, Section D (2) of the ordinance states "Offices and clinics for medical, psychiatric, or
other health services for the examination or treatment of persons as out-patient, including
laboratories that are part of such office or clinic" are permitted in the Light-Industrial District by
Special Use Permit. I believe your proposed business, as you have described it to Bob & I, is
regulated by this section of the ordinance. Application forms for the Special Use Permit as well
as the entire Zoning Ordinance are on-line on the Town web site. Please pay particular attention
to Article VII of the ordinance. This article details the items that will be considered by the Board
in their deliberation and for which you will have to make your case before the Board. The
deadline for getting on the June agenda is May 21st (the third Friday of each month)and
there will be no July meeting, so plan your application accordingly. Hope this helps,

Gary
GREENLEAF COMPASSION CARE CENTER, INC.

Operations Manual

Section 1 - Procedures for the Oversight of the Compassion Center………………………1

Section 2 – Procedures for Safely Dispensing Medical Marijuana to………………………2


Registered Qualifying Patients or Their Other Registered Primary Caregiver

Section 3 - Procedures for Accurate Recordkeeping and Protocols to……………………...5


Address Quantities Purchased/Redistribution Issues

Section 4 - Employee Security Policies………………………………………………………..6

Section 5 - Safety and Security Procedures, With Disaster Planning………………………..6


Procedures to be Followed in Case of Fire or Other Emergencies

Section 6 - Personal Safety and Crime Prevention Techniques………………………………9

Section 7 - Position Descriptions or Employment Contracts for All Greenleaf……………11


Staff and Volunteers, to Include Duties, Responsibilities, Authority,
Qualifications and Supervision

Section 8 - The Compassion Center’s Alcohol and Drug-free Work Place Policy…………14

Section 9 - Description of the Compassion Center’s Outreach Activities to……………….16


Registered Qualifying Patients or Their Other Registered Primary Caregiver

Section 10 - Description of the Marijuana Packaging that the Compassion……………….18


Center will Utilize

Section 1 – Procedures for the Oversight of the Compassion Center


BOARD OF DIRECTORS

Greenleaf will be under the direction of its board of directors and its Bylaws (APPENDIX 1).
The board of directors is comprised of professionals that collectively have experience in all
aspects of business enterprise within non-profit and for-profit operations. The officers of
Greenleaf will report on a monthly basis to the board of directors and will implement by majority
rule the directives of the board. The board will convene to review all aspects Greenleaf’s
operation including, but not limited to, the following areas:

• Implementation of our mission statement


• Financial and growth strategy
• Patient safety and security measures
• Community relations
• Product development
• Non-profit status and function

The CEO and CCO will be members of the board and will act as liaisons between the board and
the company.

MANAGEMENT

Our management consists of executive, compliance, financial, medical, and horticultural officers.
This team will be entrusted with and responsible for carrying out the Greenleaf mission. The
responsibilities of each officer are as follows:

The Chief Executive Officer will be responsible for hiring staff, hiring contractors to design and
construct the retail and horticultural facilities, budget oversight, furnishing the facilities, working
with State and Town administrators and officials to help implement various aspects of the
operation, development of a product menu and pricing, allocation of resources to various aspects
of the venture and making final executive decisions on all aspects of the operation, and oversight
of the execution of responsibilities of the other officers.

The Chief Compliance Officer will be responsible for daily oversight of the construction and
start-up phase of operations, working with contractors to ensure the proper execution of building
plans, implementation of staff training and safety measures, development and implementation of
inventory controls, development of State compliance packaging techniques, development of
education materials and distribution methods, oversight of employees, and functioning during
retail hours as our on-site pharmacist.

The Chief Medical Officer will be responsible for oversight of all aspects of patient interaction,
including development of educational materials, insuring compliance with State/Federal, OSHA
and HIPAA regulations, education of local physicians, product quality control, and integration of
cannabinoid research into our product development and menu.

The Chief Horticultural Officer will be responsible for development and implementation of our
horticultural program, including site plan design, site plan construction, grow methodology,
equipment acquisition, product development, and crop oversight in all growth stages.
The Chief Financial Officer (CFO) provides both operational and programmatic support to our
non-profit organization. The CFO supervises the finances component of our operation and is the
chief financial spokesperson for the organization. The CFO reports directly to the Chief
Executive Officer (CEO) and directly assists with the strategic and tactical matters as they relate
to budget management, cost benefit analysis, forecasting needs and the securing of new funding.

The Security Consultant (Michael Correia of H&C Security, Inc.) has designed and will install
our proposed security system. He will provide on-going maintenance, service and development
of our comprehensive security protocol. He will be responsible for ensuring that Greenleaf, at all
times, utilizes the best and most efficient security technology and protocols. He will report to the
COO, CEO and local law enforcement on a monthly basis and in response to any security
situations.

STATE OF RHODE ISLAND

The State of Rhode Island holds ultimate oversight authority over our compassion center.
Greenleaf will work to conform with all current and future State regulatory policies. We will
uphold all parameters pursuant to R21-28.6-MMP in a transparent, proactive and forthcoming
manner.

Section 2 – Procedures for Safely Dispensing Medical Marijuana to Registered Qualifying


Patients or Their Other Registered Primary Caregiver

PATIENT PRIVACY

All employees of Greenleaf shall be familiar with the guidelines of the Health Insurance
Portability and Accountability Act (HIPAA) and all Rhode Island health care information
law, including the Confidentiality of Health Care Communications and Information Act
To satisfy our obligation to maintain the highest level of privacy, we will develop an in-house
Privacy Pamphlet based on Rhode Island law and the HIPAA instruction course HIPAA: Privacy
Essentials for the Physician’s Office. This course is a free on-line HIPPA training curriculum
provided by the Ohio University College of Osteopathic Medicine in conjunction with the OHIC
Insurance Company. This curriculum and testing program is used by many hospitals and
healthcare companies in the United States as a method to satisfy their training requirements. For
more information please follow this link: http://www.ouwb.ohiou.edu/hipaa/ohic-
oucom/pages/resources.htm

It appears as though the State has not formally addressed the question of whether it will share the
names of patients that have recently appointed a compassion center as one of their caregivers.
However, under the “Application and Responses” section of the Medical Marijuana Program
web-site, the Office of Health Professional Regulation has determined the following:

“HEALTH interprets the requirements of §§4.7.4 and 4.8 of the Rules and Regulations Related to the
Medical Marijuana Program as not allowing a compassion center to function as a primary caregiver for a
qualifying patient until such time as the compassion center is notified by HEALTH that the qualifying
patient’s request to add them as a primary giver has been processed by HEALTH.”
This suggests that compassion centers will be provided with patient specific identifiers. To the
degree that this is accurate, all patient specific identifiers, including but not limited toname, card
number, date of birth, address, phone number, email address or diagnosis as provided by the
State, will be recorded only on our secure and access controlled medical software.

Our measures are as follows:

It is essential that we maintain, at a minimum, enough identifying information to validate a


patient under our care at the point of entry to our facility. Patients will be required to present
their cards before entry, and we will have in our medical records, at a minimum, their name and
M.M.P. I.D. number. When a new patient visits our facility for the first time, we will ask them
to sign our HIPAA / Confidentiality Statement. They may, at that time, ask us to remove all but
their I.D. from our records. We will give patients the option of determining which identifiable
information we capture.

From that point forward, we will protect all identifying patient information and may not use or
disclose any individual patient's health information except for helping them secure an
appropriate medicine, for payment purposes, or regular dispensary operations. Any additional
uses of a patient's health care information would require an advanced authorization signed by the
patient.

Our security system includes video cameras that will record our center around the clock and
video will stored in our system for at least 30 days. For security purposes, our system will have
sufficient resolution for recognition of all patients entering our facilities. Much like a bank, we
will not permit entrance to people wearing sunglasses, hoods and apparel that diminish our
staff’s ability to positively confirm the cardholder. Our video will be held in a secured/ pass-
code protected video hard drive. After 30 days, our system will automatically delete all video
recordings. Our HIPAA / Confidentiality Statement will inform patients of our video
surveillance policy and general information and privacy practices. Any and all practices will be
fully compliant with State and Federal information and privacy law.

To most effectively address our patient’s privacy, Greenleaf will establish policies and
procedures to address the following privacy matters:

• Appoint a privacy officer or assign privacy officer duties to a specific staff member.
• Develop a notice of privacy, including an acknowledgement form.
• Define who can access and who cannot access protected health information (PHI).
• Establish a procedure to allow patients to amend their medical records
• Create a procedure to document all non-authorized disclosures outside of payment,
compassion center operations (???????????)
• Develop audit trails to provide patients with a listing of all who accessed or received
information from their records.
• Establish a protocol that states release of only the minimum information necessary - where
applicable.
• Review information security including passwords and access to information.
• Revise our authorization form to include the specific HIPAA language on a regular basis.
• Establish a privacy complaint policy and protocol.
• Institute a policy allowing patients to access their medical records.
Because of the sensitive nature of our business and for protection of our patient’s health care
information, Greenleaf stresses a culture of strict privacy. In addition to the above, the following
procedures will be vigilantly monitored among all personnel.
• Never e-mail username and password and URL to someone in the same e-mail
• Do not store username and password information in the same file on your desktop. Create a
numbered sheet of paper with your password information and then on another piece of paper
in a separate location with the numbers, username information and website locations (if
possible, laminate the sheets of paper and keep them in two separate secured locations).
• Create different accounts for contractors accessing the same website
• Change passwords every 60-90 days.
• Do not ask any internet browser to remember your password for any site
• If purchasing a product and using a secure web form, it is okay to put Greenleaf’s e-mail
account – otherwise, do not give the company’s or your e-mail address out online
• If posting a company sponsored event (ie:educational seminar) or something online that
requests a reply for the general public, create a random e-mail address that will forward to
your e-mail.

Adherence to software procedure will be strictly enforced to ensure accurate recordkeeping,


including protocols to ensure that quantities purchased do not suggest re-distribution;
Greenleaf recordkeeping will be done through the use of a web-based software program
called 420SOFT™. 420SOFT is proven medical POC software that uses strict security
policies with the following enhanced features:

• Patient and physician information data entry.


• Information is stored on secure server at the hosted location.
• Patient wish list notification via email and/or mobile phone.
• Patient referral points system.
• Patient data entry directly from the driver license via magnetic swipe card reader.
• POS
• Adhesive labels print for plastic containers.
• Total transaction amount adjustment capability. (manager code required)
• Inventory entry, inventory purchase and balance real-time tracking.
• Inventory balance adjustment capability
• Automatic inventory discounts setup (e.g. 1Gr = $20, 1/8Oz(3.5Gr) = $50).
• Employee administration with different levels of access.
• Interactive reports.
• Cash and percentage promotions (with ability to notify via email and/or mobile
phone).
• Automatic barcode generator (no additional software necessary to create barcodes).
• Import data to EXCEL (for further integration with QUICKBOOKS, etc.)
• Ability to apply discounts (e.g. 1/8 discount) on smaller quantity and combining
them.

PRODUCT SAFETY
It is central to our mission that we provide the highest quality medicine and deliver it as safely as
possible to our patients. Our medicine will be grown in accordance with organic practices and
will be tested for impurities and natural parasites. In addition, we will implement procedures for
ensuring exact dose administration.

Cultivation Practices: We will utilize only organic nutrients, pesticides, herbicides and wetting
agents that have undergone OMRI certification - such as the Atami brand line of products.

Dose Administration: It is now the industry standard to label medical marijuana packaging with
THC and CBD dosages. We will acquire a mass spectrometer to batch test our strains and will
label all vials, packages and edibles with dosage information.

Educational Materials: We will provide safety related pamphlets, as described in this operations
manual, that will support, inform and instruct patients as to the proper administration techniques
and the risks and side effects associated with medical marijuana consumption.

Section 3 - Procedures for Accurate Recordkeeping and Protocols to Address Quantities


Purchased/Redistribution Issues

All sales of medical marijuana will be entered in our 420SOFT™ database. Each registered
patient will have an individual sales profile in our system and each sale entry will indicate at a
minimum:

• Patient and/or their Caregiver’s I.D. number.


• Product purchased.
• Quantity of product purchased.
• Date of purchase.

Prior to every sale, the Customer Care Representative will log into the patient’s profile and
examine their sale/purchase history. In accordance with 5.8 of the “Rules and Regulations
Related to the Medical Marijuana Program” we will not dispense more than 2.5 oz of usable
marijuana to a qualifying patient directly or through a qualifying patient’s other primary
caregiver during a 15 day period.

We will track individual patient purchase histories in conjunction with that of their qualified
primary care giver. No purchase will be allowed that exceeds the quantities permitted by State
law.

Section 4: Employee Security Policies

Our employee security policies fall into two categories. Category one includes measures to
ensure that employees are protected from possible intruders and all forms of criminal activity.
The second category of employee security includes measures to protect Greenleaf from
employee theft and criminal activity.

Category One: In accordance with our Safety Procedures as described in Section 5 of this
operation manual, Greenleaf employees will undergo comprehensive training in the use of our
security system. Employees will also be required to receive on-site security training that will
provided by the Portsmouth Police Department. This training will cover all aspects of crime
prevention and emergency situation response.

Category Two: We will utilize the following situation specific protocols to limit the possibility
of employee crime or theft.

• All sections of the facility will be monitored by video cameras, as described in Section 5 of
this manual. This will help prevent theft and criminal behavior.
• Our inventory logs will be checked weekly to monitor for lost medicine. Should our
operations officer, or other employee, detect any inconsistencies in inventory a full inventory
assessment will occur. If the inventory assessment is conclusive in determining that
medicine has disappeared, we will review our video log to determine whether any criminal
activity has occurred.
• All employees will undergo a background check with the Portsmouth Police Department.
Any possible candidate for employment with a history of criminal activity will undergo a
thorough risk assessment by our COO and CEO and will not be hired if we deem them to be
a risk to our enterprise.

Section 5 – Safety and Security Procedures, With Disaster Planning Procedures to be


Followed in Case of Fire or Other Emergencies

Security Related Procedures have been withheld under RIGL38-2-2(4)(s) and have been
provided under separate and secure cover

DISASTER PLANNING

Weather Related Emergencies: Aquidneck Island is prone to four types of weather related
emergencies; snow, wind, rain and flooding. Each event may require its own situation-specific
protocol. However, we believe the structural design, sighting of our facility and security plan
will greatly reduce the likelihood of a weather related event causing a breach of our security
infrastructure.

The security system is designed to be triggered by any physical breach of the facility, to include
a roof or wall collapse due to snow, hurricane or tornado.
Fire Related Emergencies:

If you discover a fire:

• Alert people in the area of the need to evacuate


• Activate the nearest fire alarm
• Call Public Safety at 911

If a building fire alarm is sounding or you receive notification of a fire emergency:

• Feel the door or doorknob to the hallway with the back of your hand. If it feels hot, do
not open it – the fire may be on the other side of the door. If you are trapped, put a cloth
or towel under the door to help prevent the entry of smoke. Dial 911 and tell the Public
Safety dispatcher your location and telephone extension and that you are trapped in the
room and need rescue. Stay on the phone until instructed otherwise.
• If the door is not hot, open it slowly. If the hallway is clear of smoke, walk to the nearest
fire exit and evacuate via the nearest stairwell to the street/grade level exit.
• Close doors behind you.
• Do not attempt to use elevators. Elevators are tied to the fire detection system and are not
available to occupants once the alarm sounds.
• Assemble at the designated area and remain there until instructed by Public Safety or the
fire department that it is safe to re-enter the building.

If you have been trained to use a fire extinguisher

Only trained personnel may use fire extinguishers. Small fires can be extinguished without
evacuation, but you much constantly evaluate and be ready to evacuate if the fire cannot be
controlled. NEVER ENTER A SMOKE-FILLED ROOM.

• Alert people in the area.


• Activate the fire alarm.
• Smother the fire or use the correct fire extinguisher. Aim the extinguisher at the base of
the fire.
• Maintain an accessible exit.
• Avoid smoke and fumes.
• Remain available to answer questions from Public Safety, EHS or the fire department.
• Contact Building Services at 258-3490 to replace the fire extinguisher.
• Report all fires to your supervisor and Public Safety.

Section 6 – Personal Safety and Crime Prevention Techniques

PHYSICAL SAFEGUARDS
Perimeter protection will consist of contacting all perimeter doors and any interior doors leading
to other tenant’s locations. The office door will also be contacted and will work on a separate
partition. This will prevent any unauthorized person from entering the office during normal
operating times when no one is in the office.

Due to the fact that the facility will have no windows, a motion detector will provide for backup
protection in the rare case that someone breaks in through a wall or the roof. A keypad will be
placed at the main entry to disarm the system along with one in the office to run that partition.
During normal business hours, an authorized key swipe at the access reader will disarm the
system. The last person leaving the facility for the day will enter a code to arm the system. In
the case that someone would forget to do this, the system would automatically arm itself at a
predetermined time. Along with the panic button provided on the keypad, a remote panic will be
placed in the facility. The keypad also has a silent duress code that will notify us if someone is
forcing an employee to disarm the system.

PERSONNEL TRAINING

We will be implementing a comprehensive personal security training program that aims to meet
the Standards of the Bank Protection Act and will be administered under the supervision of the
Portsmouth Police Department. Together, we will train our employees with up-to-date security
breach and crime prevention protocols. Prior to opening for business, all current employees will
be required to undergo this training. Employees hired after the initial training will be trained by
Michael Correia, who will be under a continual contract with Greenleaf to implement our
security training program.

Our training requires that all employees and officers be trained annually on proper procedures for
robberies, larcenies and burglaries. Annual security training of employees will meet the
requirements of the Bank Protection Act. However, we will go beyond the annual training
requirements by regularly reminding and quizzing employees of their proper procedures during a
robbery. This can be accomplished by sending out memos, distributing newspaper stories or
security articles about robberies, which is a form of continuing education.

The following is a list of ten catastrophic mistakes committed by bank employees, and it is
illustrative of situations that may occur at our compassion center:

1. Do not treat the hold up note as a joke or a prank.


There have been several instances in which a teller has been handed a hold up note and
believes the customer is joking. If the teller does not believe the note is serious, the robber
may feel forced to display a weapon, escalating the likelihood of harm.

2. Do not create any surprises for the robber.


In some cases, tellers have walked away from their teller station if they don't observe a
weapon. Others have been advised to pretend to faint. These actions may be successful in
thwarting the bank robber, who may simply run out of the bank. But if the robber is really
desperate, the teller's actions may cause the robber to display a weapon and possibly grab a
customer in the lobby. Do exactly what the robber tells you to do.

3. Do not carry excess cash in your cash drawer or medicine in the display cases.
Bank robbers will come back if they're given large amounts of cash, or medicine. Employees
should adhere to our cash and medicine limits for cash register and product stations. Excess
cash should be transferred to the safe immediately.

4. Do not offer to rob the compassion center for the robber.


Only give to the robber the money or medicine demanded. Don't ask if the robber wants the
cash in your second drawer.

5. Do not attempt to bring attention to the robbery.


Statistically bank employees who follow the bank robber's instructions are seldom injured in
the course of a robbery. Handle the compassion center robber as you would a regular
customer. Don't attempt to gain the attention of anyone else to alert them to what is going on.
The most important role you have in this robbery is to ensure the safety of all employees and
customers in the compassion center. Bringing attention to the robber could compromise the
safety of all.

6. Do not argue with the robber or attempt to talk him/her out of the robbery.
Arguing, confronting or attempting to talk the robber out of the crime will increase the
likelihood that others will become aware a robbery is in progress and escalate the level of
danger.
7. Do not tell customers that you have just been robbed.
After one robbery, just as the robber reached the front door, the employee yelled out "grab
him, he just robbed me." This was an extremely dangerous action that places the safety of
employees and customers in danger. What if a customer did attempt to grab the robber and a
struggle took place in which a weapon was used and either a customer or employee was
injured or killed? On occasion customers, believing they are acting as good Samaritans, have
confronted or chased robbers and increased the likelihood of danger to themselves and
others.

8. Do not ever leave the bank after a robbery.


In numerous cases we found that after the bank robber left the branch, a bank employee will
either exit the bank to see if they can observe the robber's getaway or - worse - actually
pursue the bank robber in a chase. This type of action not only places the employee in danger
but also poses a threat to others. If during such a chase or attempt to observe a robber that
someone is injured, the compassion center will have potential liability in a possible civil
action. This is an especially important message for non-retail employees who may not have
been trained properly. Let the police chase the robber.

9. In a take-over robbery, do not make sudden movements.


Do not attempt to activate hold up alarms, run out of the bank, or attempt to call the police.
Take-over robberies are extremely dangerous because the robbers are most likely displaying
weapons. If you are on the telephone when a take-over robbery occurs, hang the telephone up
and do not answer any in-coming calls unless the robbers tell you to. Attempting to activate
an alarm can also be very dangerous if the robbers observe you during your attempt. Do not
try to escape the robbery, as robbers will be closely watching for this activity.

10. Do not ever attempt to engage the robber(s) in a struggle.


Although most of us would never imagine engaging a robber in a physical confrontation,
there have been cases in which bank security guards, branch managers and other employees
have physically confronted bank robbers. Remember this type of response to a robber
increases the level of danger to all employees and customers in the bank.

(The information was authored by Tony Brissette and excerpted from Bankersonline.com. Mr.
Brissette is a veteran of over 30 years as a Director of Security in Massachusetts.

OFFICIAL USE ONLY - SECURITY-RELATED INFORMATION - WITHHOLD UNDER


RIGL §38-2-2(4)(S).

Section 7 – Position Descriptions or Employment Contracts for All Greenleaf Staff and
Volunteers, to Include Duties, Responsibilities, Authority, Qualifications and Supervision

EMPLOYEE AGREEMENT

Employment Agreement, between “GREENLEAF COMPASSIONATE CARE CENTER, INC.”


and (‘Employee’,______________________).

1. FOR GOOD CONSIDERAT I O N, the Company employs the Employee on the following
terms and conditions:
2. TERM OF EMPLOYMENT. Subject to the provisions for termination set forth below this
agreement will begin on_________ , 201___, unless sooner terminated.

3. SALARY. The Company shall pay Employee a salary of $_____ per year, for the services of
the Employee, payable at regular payroll periods.

4. DUTIES AND POSITION. The Company hires the Employee in the capacity of __________.
The Employee’s duties may be reasonably modified at the Company’s discretion from time to
time.

5. EMPLOYEE TO DEVOTE FULL/PART TIME TO COMPANY. The Employee will devote


full time, attention, and energies to the business of the Company, and, during this employment,
will not engage in any other business activity, regardless of whether such activity is pursued for
profit, gain, or other pecuniary advantage. Employee is not prohibited from making personal
investments in any other businesses, provided those investments do not require active
involvement in the operation of said companies.

6. CONFIDENTIALITY OF PROPRIETARY INFORMAT ION. Employee agrees, during or


after the term of this employment, not to reveal confidential information or trade secrets to any
person, firm, corporation, or entity. Should Employee reveal or threaten to reveal this
information, the Company shall be entitled to an injunction restraining the Employee from
disclosing same, or from rendering any services to any entity to whom said information has been
or is threatened to be disclosed. The right to secure an injunction is not exclusive, and the
Company may pursue any other remedies it has against the Employee for a breach or threatened
breach of this condition, including the recovery of damages from the Employee.

7. REIMBURSEMENT OF EXPENSES. The Employee may incur reasonable expenses for


furthering the Company’s business, including expenses for entertainment, travel, and similar
items. The Company shall reimburse Employee for all business expenses after the Employee
presents an itemized account of expenditures, pursuant to Company policy.

8. VACATION. The Employee shall be entitled to a yearly vacation of ( ) weeks at full pay.

9. DISABILITY. If Employee cannot perform the duties because of illness or incapacity for a
period of more than weeks, the compensation otherwise due during said illness or incapacity will
be reduced by ( ) percent. The Employee’s full compensation will be reinstated upon return to
work. However, if the Employee is absent from work for any reason for a continuous period of
over months, the Company may terminate the Employee’s employment, and the Company’s
obligations under this agreement will cease on that date.

10. T E R M I N ATION OF AGREEMENT. Without cause, the Company may terminate this
agreement at any time upon days’ written notice to the Employee. If the Company requests, the
Employee will continue to perform his/her duties and be paid his/her regular salary up to the date
of termination. In addition, the Company will pay the Employee on the date of termination a
severance allowance of $___________ less taxes and social security required to be withheld.
Without cause, the Employee may terminate employment upon _________days’ written notice to
the Company. Employee may be required to perform his or her duties and will be paid the
regular salary to date of termination but shall not receive a severance allowance.
Notwithstanding anything to the contrary contained in this agreement, the Company may
terminate the Employee’s employment upon days’ notice to the Employee should any of the
following events occur: a) The sale of substantially all of the Company’s assets to a single
purchaser or group of associated purchasers; or b) The sale, exchange, or other disposition, in
one transaction of the majority of the Company’s outstanding corporate shares; or c) The
Company’s decision to terminate its business and liquidate its assets; d) The merger or
consolidation of the Company with another company. e) Bankruptcy or chapter 11
reorganization.

11. DEATH BENEFIT. Should Employee die during the term of employment, the Company
shall pay to Employee’s estate any compensation due through the end of the last week worked.

12. RESTRICTION ON POST-EMPLOYMENT COMPETITION. For a period of ( ) years


after the end of employment, the Employee shall not control, consult to or be employed by any
business similar to that conducted by the Company, either by soliciting any of its accounts or by
operating within Employer’s general trading area.

13. A S S I S TANCE IN LITIGAT I O N. Employee shall upon reasonable notice, furnish such
information and proper assistance to the Company as it may reasonably require in connection
with any litigation in which it is, or may become, a party either during or after employment.

14. EFFECT OF PRIOR AGREEMENTS. This agreement supersedes any prior agreement
between the Company or any predecessor of the Company and the Employee, except that this
agreement shall not affect or operate to reduce any benefit or compensation inuring to the
Employee of a kind elsewhere provided and not expressly provided in this agreement.

15. SETTLEMENT BY ARBITRATION. Any claim or controversy that arises out of or relates
to this agreement, or the breach of it, shall be settled by arbitration in accordance with the rules
of the American Arbitration Association. Judgment upon the award rendered may be entered in
any court with jurisdiction.

16. LIMITED EFFECT OF WAIVER BY COMPANY. Should Company waive breach of any
provision of this agreement by the Employee, that waiver will not operate or be construed as a
waiver of further breach by the Employee.

17. SEVERABILITY. If, for any reason, any provision of this agreement is held invalid, all other
provisions of this agreement shall remain in effect. If this agreement is held invalid or cannot be
enforced, then to the full extent permitted by law any prior agreement between the Company (or
any predecessor thereof) and the Employee shall be deemed reinstated as if this agreement had
not been executed.

18. ASSUMPTION OF AGREEMENT by Company’s Successors and Assignees. The


Company’s rights and obligations under this agreement will inure to the benefit and be binding
upon the Company’s successors and assignees.

19. ORAL MODIFICATIONS NOT BINDING. This instrument is the entire agreement of the
Company and the Employee. Oral changes shall have no effect. It may be altered only by a
written agreement signed by the party against whom enforcement of any waiver, change,
modification, extension, or discharge is sought.
Signed this _________day of,(201__).
______________________ __________________________________
Witness GLCC Company Representative
______________________ __________________________________
Witness Employee

Section 8 – The Compassion Center’s Alcohol and Drug-free Workplace Policy

GREENLEAF ALCOHOL & DRUG FREE WORKPLACE POLICY

Upon activation of the Greenleaf certificate of operation, the Company will activate an alcohol &
drug free workplace policy that meets the criteria and protocols of RI General Laws 28-6.5-1.
Testing will be restricted to pre-employment testing for applicants and reasonable cause testing
for employees. We are aware that employees testing positive are not terminated on that basis,
but are instead referred to a substance abuse professional for assistance.

Greenleaf’s policy will include language that specifically prohibits:


• The use, possession, solicitation for, or sale of narcotics or other illegal drugs, alcohol, or
prescription medication without a prescription on Company or customer premises or
while performing an assignment.
• Being impaired or under the influence of legal or illegal drugs or alcohol away from the
Company or customer premises, if such impairment or influence adversely affects the
employee's work performance, the safety of the employee or of others, or puts at risk the
Company's reputation.
• Possession, use, solicitation for, or sale of legal or illegal drugs or alcohol away from the
Company or customer premises, if such activity or involvement adversely affects the
employee's work performance, the safety of the employee or of others, or puts at risk the
Company's reputation
• The presence of any detectable amount of prohibited substances in the employee's system
while at work, while on the premises of the company or its customers, or while on
company business. "Prohibited substances" include illegal drugs, alcohol, or prescription
drugs not taken in accordance with a prescription given to the employee.

EMPLOYEE DRUG AND/OR ALCOHOL TESTING CONSENT FORM

I hereby agree, upon a request made under the drug/alcohol testing policy of GREENLEAF
COMPASSIONATE CARE CENTER, INC (the Company), to submit to a drug or alcohol test
and to furnish a sample of my urine, breath, and/or blood for analysis. I understand and agree
that if I at any time refuse to submit to a drug or alcohol test under company policy, or if I
otherwise fail to cooperate with the testing procedures, I may be subject to immediate
termination. I further authorize and give full permission to have the Company and/or its
company physician send the specimen or specimens so collected to a laboratory for a screening
test for the presence of any prohibited substances under the policy, and for the laboratory or
other testing facility to release any and all documentation relating to such test to the Company
and/or to any governmental entity involved in a legal proceeding or investigation connected with
the test. Finally, I authorize the Company to disclose any documentation relating to such test to
any governmental entity involved in a legal proceeding or investigation connected with the test.

I understand that only duly-authorized Company officers, employees, and agents will have
access to information furnished or obtained in connection with the test; that they will maintain
and protect the confidentiality of such information to the greatest extent possible; and that they
will share such information only to the extent necessary to make employment decisions and to
respond to inquiries or notices from government entities.

I will hold harmless the Company, its company physician, and any testing laboratory the
Company might use, meaning that I will not sue or hold responsible such parties for any alleged
harm to me that might result from such testing, including loss of employment or any other kind
of adverse job action that might arise as a result of the drug or alcohol test, even if a Company or
laboratory representative makes an error in the administration or analysis of the test or the
reporting of the results. I will further hold harmless the Company, its company physician, and
any testing laboratory the Company might use for any alleged harm to me that might result from
the release or use of information or documentation relating to the drug or alcohol test, as long as
the release or use of the information is within the scope of this policy and the procedures as
explained in the paragraph above.

This policy and authorization have been explained to me in a language I understand, and I have
been told that if I have any questions about the test or the policy, they will be answered.

I UNDERSTAND THAT GREENLEAF WILL REQUIRE A DRUG TEST .UNDER THIS


POLICY AS A CONDITION OF EMPLOYMENT. AS AN EMPLOYEE OF GREENLEAF, I
UNDERSTAND THAT I MAY BE SUBJECT TO A DRUG TEST AND/OR ALCOHOL TEST
UNDER DOCUMENTED CIRCUMSTANCES OF REASONABLE CAUSE.

__________________________________ __________________

Signature of Employee Date

__________________________________

Employee's Name - Printed

__________________________________ __________________
Greenleaf Representative Date

Section 9 – Description of the Compassion Center’s Outreach Activities to Registered


Qualifying Patients or Their Other Registered Primary Caregiver

FREQUENTLY ASKED QUESTIONS

Section 5.1.8.i.1 states that the Department of Health will design a Frequently Asked Questions
(FAQ) brochure. Greenleaf will provide each new registered qualifying patient who visits our
center with a copy of this brochure.

INGESTION OPTIONS

It is our intention to provide edible products to our patients as we believe this to be a necessary
method of dose delivery, especially for patients with compromised lung function. Upon receipt
of a permit to operate a compassion center we will be seeking permits to operate a commercial
kitchen within our facility.

We will then work with our patients to develop a menu that satisfies their specific needs and
desires.

SAFE SMOKING TECHNIQUES

Tobacco smoke is a direct cause of emphysema. But research shows that marijuana smoke does
not cause emphysema. Tobacco smoke can cause both acute and chronic bronchitis. Marijuana
smoke is more likely to cause acute bronchitis rather than chronic, but both usually can be
remedied simply by reducing or temporarily stopping smoking. Coughing while
smoking...you've inhaled too much smoke. Coughing after smoking...you've been smoking too
often. Most medicinal marijuana patients medicate just once or twice a day. The most intense
usage may be found among glaucoma patients, some who administer the cigarette equivalent of
two packs a day. For those, smoking marijuana poses severe respiratory risk.

To reduce respiratory irritation, simply reduce smoke inhalation. Sift out low-to-no potency
twigs and seeds. When given the choice, choose bud over leaf. Leaf averages only 1 to 2 per cent
THC, while ordinary bud averages 3 to 5 per cent. Recently improved methods of hybridization
grow technology have produced strains with increased scores.

The health equation is obvious. The more potent your medicine, the less you will need to use.

Store your herbal medication in such a way as to assure it retains its potency. Smaller size
quantities may be purchased in a plastic vial type dispensing container. That is only a first line of
defense. Such vials are waterproof, but not air proof, else its sweet aroma would not penetrate
beyond the vial. Place that vial inside a second "oven bag," marketed for roasting. Such bags are
indeed air proof. Larger size quantities may come in plastic bags which can be doubled up Bags
hardly protect the delicate herb from being crushed, however, so place the double bag inside a
rigid and airtight container such as glass or Tupperware type plastic. Keep the bud whole to keep
it fresh and thereby retain its potency. Next, store the rigid container in a cool, dark place.
Refrigerators are fine, and freezers are better. Kept frozen, herbs lose little potency. Do not store
in an any area (such as an unfinished attic or cellar) that in the coldest winter months is exposed
to night and day temperature fluctuations sufficient to freeze and thaw, and refreeze and re-thaw
causing herbs to crumble, with a similar consequent loss of potency as from being crushed

Given the choice, go organic, as pesticides and other chemicals washed off food are not washed
off during normal cannabis processing and use. Trust your throat and your head. If just a little
puff causes you to cough, or if a little too much gives you a headache, don't blame the herb,
blame the chemicals. Breathe deeply if you want, but do not hold that breath. Once the delicate
membranes of the cilia of your lungs are coated by the air and the medicinal smoke, no amount
of holding your breath will provide any greater effect. Instead it only further irritates your lungs.
Cannabinoids are fat soluble and so are quickly absorbed through the lungs. Tars, however, are
absorbed more slowly. So take it easy, breathe easily and don't hold your breath!

POTENTIAL SIDE EFFECTS

Greenleaf’s Medical Officer will be responsible for maintaining up-to-date information on


medical marijuana research at all times. The Medical Officer will be responsible for overseeing
the transmission of new potential risks and benefits to our patients via educational material. The
following potential side effects will also be conveyed by written package insert and verbally at
the time of dispensing.

Common Side Effects:


• Trouble remembering things
• Sleepiness
• Anxiety
• Paranoia
Some people are not affected with these symptoms of medical marijuana, which are relative to
the individual patient’s current health status. For example, people who have a history of mental
or health problems should be advised not to smoke or ingest it, unless it was proven that it would
not adversely affect his or her behavior. First time smokers of marijuana should always use a
small dose to see how it would affect their body or mind. This is a good way to see if marijuana
is okay for the patient, with the minimal side affects and dangers associated with smoking
marijuana.

Medical marijuana causes physical side effects as well when used in large doses. Some side
effects can be cured with remedies that are fairly simple. Water or juice is very good in
preventing dry mouth (cotton mouth). Sugar and fat free foods are also great in fixing the hunger
you might encounter when smoking or ingesting marijuana. If there is a problem with headaches
or nausea, a warm bath might help. Things that should be avoided with smoking marijuana are
drinks that contain caffeine, fatty foods with a lot of sugar, and excessive exercise.

Physical Adverse Effects of Marijuana may include;


• Dry mouth
• Nausea
• Headache
• Tremor
• Decreased coordination
• Increased heart rate
• Altered pulmonary status
• Altered body temperature
• Reduced muscle strength
• Decreased cerebral blood flow
• Increased food consumption
There are also side effects that alter brain function. These types of side effects are usually
associated with brain disorders. If anyone experiences an adverse effect that they cannot control,
such as those listed below, they are not recommended to smoke or ingest marijuana until they
consult their physician for advice.

NEUROPSYCHIATRIC ADVERSE EFFECTS OF MARIJUANA:


• Anxiety and panic
• Paranoia
• Confusion
• Aggressiveness
• Hallucinations
• Altered libido
• Possible suicidal ideation
• Depersonalization
• De-realization
• Poor sense of time
• Worsened short-term memory
• Addictive behaviors
• A-motivational syndrome

Section 10 – Description of the Marijuana Packaging That the Compassion Center Will
Utilize

Usable medicinal marijuana shall be dispensed in standard 13,16,20,30,40,60 dram vials. Each
vial shall be affixed with a patient specific label generated from the companies integrated
‘420soft’ software. Each label shall include patient and medicinal strain information: Patient’s
registry id#, strain and cannibinoid concentration percentage, quantity of medical marijuana, date
of packaging and batch number. Each vial will have an individually applied sticker that states
“THIS PRODUCT IS FOR MEDICAL USE ONLY AND NOT FOR RESALE”. Greenleaf staff
are to request that patient accepts ‘child proof cap’ regardless of patients disease state.

At time of dispensing staff is to place vialed product in company supplied safety bag. Bags are to
have non see thru safety feature. Each bag is to be accompanied with patient pamphlets that
contain ‘adverse effects’ information and ‘safe smoke techniques”. Patient or caregiver is to sign
log and acknowledge assigned package number. HIPPA pamphlet is to be offered at every
transaction.
Eric F. Archer
Attorney at Law
20 Ocean Avenue
Jamestown, RI 02835
P: (401) 423-0083 • F: (401) 633-7110
May 13, 2010

Office of Health Professionals Regulation


Charles Alexandre, RN, MSN, Chief
3 Capitol Hill, Room 104
Providence, RI 02908

RE: Application of Greenleaf Compassionate Care Center, Inc. (“GCCC, Inc.”)

Dear Mr. Alexandre:

By this letter I am issuing my legal opinion on the following matters called for by the General
Requirements:

5.2.3: The Chief Compliance Officer, Dennis Reid, named in GCCC, Inc.’s application and I
have met and communicated with the Portsmouth Town Administrator and Portsmouth Zoning
Official to review the zoning regulations of the proposed location of GCCC, Inc’s horticultural
operations. In accordance with the letter from the Town of Portsmouth, which is included with
this application, I have also reviewed the title and all building restrictions and covenants, as well
as the zoning ordinance. The horticultural operations are allowed as a matter of right without
further zoning approval. The compassion center is permitted as a “special use”, and will require
zoning approval of that use. An application has been filed to have this matter heard during
Portsmouth’s June Zoning hearing, and this matter has been docketed. The town has indicated its
support for the Center and does not expect the special use to be an obstacle.

In their application, the applicants have asked whether the State of RI would prefer that the
Compassion Center be located in another part of the state, particularly if a single license for a
center is going to be issued, and if the issuance of a license is contingent upon GCCC, Inc.
finding another suitable location, several potential sites in Warwick area, for one, appear
workable as a matter of right.

5.2.4: The Mr. Reid and I also drew the 500’ radius lines and I can confirm that the proposed
site does not fall within 500’ of any private or public school.

5.2.5: I have agreed to serve on the Board of Directors of GCCC, Inc., in large part to ensure
continued compliance with RI’s not-for-profit laws. We have not yet applied for tax-exempt
organization status, and expect to proceed under 5.2.5(b), and to comply with §21-28.6-
12(c)(3)(ii) of the Act. In furtherance thereof, and in a somewhat abbreviated summary, I have
worked with GCCC, Inc. to draft a mission statement, bylaws, proposed employment
agreements, and an operating and planning manual that ensure the following:
A. SALARIES: All officers and other full time employees of GCCC, Inc. will be compensated
salary-only. Each salary line shall be established by comparing full time employees job
descriptions and proposed salaries with those of other not-for-profit entities, using Forms 990
available through guidestar.org as a database. To avoid conflict, the CFO, who will not be a
salaried employee himself, will bear the initial responsibility of establishing the salary bands,
which he will present to a “Compensation Committee” of the Board of Directors. The
Compensation Committee shall consist of all directors on the Board who are neither full time
employees nor receive $10,000 or more in fees for services provided to GCCC, Inc. (e.g. its
lawyer, CPA or similar professional), and the compensation structure must be approved
unanimously by all such members. Once approved, the salaries must be approved by a majority
vote of all members of the Board during a regularly scheduled Board meeting attended by the
necessary quorum of advisors. No officer or employee of GCCC, Inc. may receive
compensation in the form of profit sharing. GCCC, Inc’s profitability and net revenues may be
considered in ascertaining any year end bonus to key employees, but the combination of any
employee’s base line salary and year end bonus may not exceed the salary benchmarks
established by the Compensation Committee.

B: PAYMENTS TO LENDERS AND OUTSIDE INVESTORS: All promissory notes, loan


agreements and prospectuses circulated to investors clearly disclose that start up capital for
GCCC, Inc. shall be limited to arm’s length loans from individuals, paying interest only, and
shall not include any profit sharing or similar arrangement that serves to compensate investors
based on GCCC, Inc’s performance. While interest rates are likely to be on the high end of the
normal market for business loans, this is because of GCCC, Inc’s inability to offer a security
interest in the medical marijuana as inventory or any other collateral, and the fact that this will be
a start up entity. Usury principles will ensure that profits cannot be distributed in the guise of
“interest”.

C. SUBSIDIARIES: GCCC, Inc. is a stand alone entity, and is neither owned by, nor owns,
nor plans to acquire or plans to be acquired by any other entity that could be designed to
circumvent not-for-profit standing.

D. CONTINUED COMPLIANCE: The positions of Chief Financial Officer and Compliance


Officer have been established to share responsibility for ongoing compliance with §21-28.6-
12(c)(3)(ii) of the Act. Measures will be implemented to reconcile revenues and inventory.
Non-Disclosure and Confidentiality Agreement

The undersigned ("Recipient") hereby agrees that all financial and other information
("Information") that it has and will receive concerning Greenleaf Compassionate Care Center,
Inc. is confidential and will not be disclosed to any individual or entity without prior written
consent.

The Information shall remain the property of Greenleaf Compassionate Care Center, Inc. and
shall be returned to Greenleaf Compassionate Care Center, Inc. promptly at its request together
with all copies made thereof.

Recipient acknowledges that no remedy of law may be adequate to compensate Greenleaf


Compassionate Care Center, Inc. for a violation of this Agreement and Recipient hereby agrees
that in addition to any legal or other rights that may be available in the event of a breach
hereunder, Greenleaf Compassionate Care Center, Inc. may seek equitable relief to enforce this
Agreement in any Court of competent jurisdiction.

_______________ ________________________________
Date Signature

This is a business plan and does not imply an offering of securities.


Greenleaf Compassionate Care Center, Inc.

Contact Information:

Dr. Seth Bock, CEO


Greenleaf, Inc.
565 Wolcott Ave
Middletown, RI 02840
(401) 743-7613
(401) 324-6858 - fax
drbock@newportacupuncture.com
Dennis Reid, R.Ph.
45 Goldenrod Drive
Middletown, RI 02842
denreid4@hotmail.com

This document contains confidential information. It is disclosed to you for informational


purposes only. Its contents shall remain the property of Greenleaf Compassionate Care Center,
Inc. and shall be returned to Greenleaf Compassionate Care Center, Inc. when requested.

This is a business plan and does not imply an offering of securities.


Table of Contents

1. Executive Summary 1
Business Opportunity
Product/Service Description
Current Business Position
Financial Potential
The Request

2. Company Background 4
Business Description
Current Position and Business Objectives
Ownership

3. Products 6
Product Overview
Competitive Analysis
Research and Development

4. Services 8
Service Descriptions
Service Delivery
Research and Development

5. The Industry, Competition and Market 10


Industry Definition
Primary Competitors
Market Size
Market Growth

6. Marketing Plan 13
Competitive Advantage
Pricing
Promotional Plan
Feedback
7. Operating Plan 16
Location
Facility
Suppliers and Vendors
General Operations

8. Management, Organization and Ownership 18


Management/Principals
Organizational Structure
Professional Consultants

9. Goals and Strategies 21


Business Goals
Keys to Success
Future Plans

10. Financial Assumptions 23


Assumptions

11. Appendix 24
Income Projection
Expense Projection
Profit & Loss
Balance Sheet
Cash Plan
Ratio Analysis
Greenleaf Compassionate Care Center, Inc. 1

1. Executive Summary
Greenleaf Compassionate Care Center, Inc. ("Greenleaf") wants to make history by
establishing the first center for the dispensation and cultivation of Medical Marijuana on the
east coast. To achieve this we have put together a remarkable team of health care and
horticultural experts to ensure that we produce the best organic medicine possible.

We will grow and sell a wide selection of organic medical marijuana strains to patients in the
Rhode Island Medical Marijuana Program. In addition to medical marijuana, we will create
a retail space wherein a variety of marijuana edibles, paraphernalia and lifestyle products are
sold.

Under the tutelage of its founders, Greenleaf will service those in need by utilizing our
combined expertise in herbal medicine, pharmacy, organic horticulture and patient care. Our
aim is to provide the highest level of care, product and integrity in a new and exciting
industry.

Our medicine will be sold in facilities that reflect our experience in the Wellness, Spa,
Acupuncture and Herbal Medicine industries; providing a sense of tranquility while ensuring
a high level of patient security.

1.1 Business Opportunity


The State of Rhode Island has passed this country's most comprehensive medical
marijuana bill to date. A recent revision to this legislation has added provisions for
Compassionate Care Centers. By definition, a Compassionate Care Center can legally
grow, acquire, transport and sell medical marijuana to card-holding patients.

This well crafted bill sets the standard for the creation of a sustainable and successful
non-profit medical marijuana business. Furthermore, it permits up to a maximum of
three permits statewide. Given the growth of interest in this medicine and the growth
curve of licensed patients we believe this model creates a unique lending opportunity.

We are seeking 10 loan commitments prior to our Compassionate Care Center


application deadline of May 15th, 2010. Should you decide to make a loan to Greenleaf
you will receive a promissory note. Upon our receipt of the permit the loan will become
active and payable to Greenleaf according to the agreed-upon terms.

1.2 Product/Service Description


Greenleaf will be offering organic varieties of medical grade marijuana, ingestibles,
paraphernalia and lifestyle products such as hemp products, relevant books, Chinese
herbs and meditation CDs. We will offer our customers educational materials and have a
pharmacist on hand to instruct them.

Like all successful products our medicine will generate buzz in its niche market. We will
achieve this by acquiring seeds of highly successful medical marijuana strains to produce
Greenleaf Compassionate Care Center, Inc. 2

a a superior product. These strains will provide a spectrum of medicinal properties to


meet the needs of our patient base.

However, to expand beyond our niche we believe a great product alone is not enough. In
this field education is the fuel that sparks the engine. There are many prospective
patients and doctors that simply do not know the benefits of this medicine. Much like
our successful promotion of alternative medicine over the past decade, we intend to
educate patients and local health care providers about the benefits of medical marijuana.

1.3 Current Business Position


Greenleaf is a registered as a non-profit corporation in Rhode Island. The first goal of
our business will be winning a Compassionate Care Center permit. The State will issue
at least the first of three permits by July 17, 2010. The State may issue all three permits
at that time or issue the second and third at a later date. We believe our business model
will surpass those of other applicants in terms of innovation of service, experience and
background of our management, quality of product and ability to provide a safe,
confidential and secure environment. We therefore hope to be awarded this State's first
permit.

Greenleaf's Management and Consultants include:

Seth Bock, Doctor of Acupuncture - Chief Executive Officer


Dennis Reid, Pharmacist - Chief Operating Officer
David Cunningham - Chief Medical Officer
Bruce Vanicek- Chief Horticulture Officer

Michael Correa - Security Consultant

1.4 Financial Potential


We will strive to make Greenleaf profitable after two years of operation. The financial
success of Medical Marijuana Dispensaries in California is well known (see link). In
California, there are cities with dozens of succesful operations operating in close
proximity. Given that Rhode Island legislation permits a maximum of three dispensaries
statewide, each center will operate in its own geographical territory. This will ensure the
success of Rhode Island's three Compassion Centers.

Our marketing experience and exceptional business reputation in the Newport County
community will further enable us to grow. We have well-established relationships with
numerous health care providers, medical doctors, medical facilities and local
organizations. We intend to use these connections to promote this medicine vigorously.

Based on the projections we have provided, it is foreseeable that Greenleaf could reach
over 1 million dollars in yearly sales by the end of the third year of operation.
Greenleaf Compassionate Care Center, Inc. 3

http://www.nytimes.com/2009/10/18/us/18enforce.html?_r=1

1.5 The Request


Based on our financial projections, Greenleaf requires $400,000 in initial start-up capital.
This consists of start-up and operational costs for the first year of operation plus reserves
for unseen circumstances such as crop failure. These include retail and cultivation lease
expenses, minor renovations, equipment, a security system, salaries, marketing, utilities
and office expenses. However, we are projecting $83,000 in sales by the end of the first
eight months of operation. Incoming sales will additionally ensure availability of funds.

To meet this required amount, a 5-year loan of $400,000 with a 16% annual rate is being
requested from interested venture parties. Additionally, a performace based increase of
up to 5% will be added to the annual rate if our performance metrics are acheived. This
is defined in the Profit & Loss section of this document.

-Loan to be payable upon receipt of permit to open Compassion Center.

-Greenleaf will offer all of its securable assets as collateral.

-Please see the "Lender Prospectus and Disclaimer" appendix for details.
Greenleaf Compassionate Care Center, Inc. 4

2. Company Background
The first written documentation of the use of medical marijuana dates 2800 B.C. in the Pen
Tsao a text compiled by Chinese emperor and physician Shen-Nung. Archeological evidence
of the varied uses of Marijuana pre-dates the Pen Tsao by several thousands of years.
Historical accounts prior to the 20th century contain very little anecdotal evidence that
Marijuana was ever considered unsafe, taboo and/or illegal. Quite the contrary - cultures
around the world fused the marijuana plant in medicinal, culinary and industrial applications.

After nearly a century of misunderstanding and demonization, many nations are revisiting
the beneficial uses of marijuana. In the US, 10 states have decriminalized marijuana . Rhode
Island may soon be the eleventh. Fourteen states have legalized the medicinal use of
marijuana, including Rhode Island in 2006.

Greenleaf is the vision of its founder, Seth Bock, Doctor of Acupuncture. Dr. Bock received
his pre-medical training at the University of Massachusetts, Amherst and went on to work in
the field of research ethics at the Dana Farber Cancer Institute and Brigham and Women's
Hospital. There he served in many capacities in the administration of human research
protocols. He also helped set up the Dana Farber Alternative Therapies Task Force. These
experiences revealed not only the substantial risks associated with pharmacological
interventions but also the role of corporate stakes in modern medicine. Frustrated by what he
saw, he was determined to find a way to help people that did not rely on prescribing
pharmaceuticals. He soon discovered Chinese medicine and enrolled in a rigorous course of
study at the New England School of Acupuncture. In addition to studying acupuncture he
earned a master's degree in Chinese medical herbology and developed a passion for using
herbs to treating illness. His interest in medical marijuana increased when two of his aunts
developed cancer and found relief for symptoms associated with chemotherapy by using
cannabis. Their belief in the legitimate use of this herb prior to their passing was an
important factor in Dr. Bock's interest in this project.

Dr. Bock sees medical marijuana as a significant herb in the world's pharmacopoeia of
medicinal substances. He would like to educate physicians and patients about the myriad
uses of this important medicinal herb.

2.1 Business Description


Greenleaf is a nonprofit corporation whose mission is to provide the highest quality of
organic medical marijuana at an affordable rate to patients holding a medical marijuana
card. Greenleaf will sell several varieties of medical marijuana and a variety of
ingestibles to give patients an opportunity to explore different consumption options.

In addition, Greenleaf will provide educational forums and outreach for current patients,
potential patients and local health care practitioners. Our outreach will aim to decrease
any and all stigmas about the medical use of marijuana in our community. We do not
believe that marijuana is a panacea for all medical conditions. However, we do believe
there are many people that would undoubtabley benefit from access to safe, high-quality
medical marijuana when prescribed appropriately by a physician. Unfortunately at this
Greenleaf Compassionate Care Center, Inc. 5

time, many candidates for this medicine are struggling to find physicians willing to help
decide whether it is the right medicinal choice. Our outreach will seek to bridge this gap.

Greenleaf will operate as a nonprofit, although the RI's medical marijuana legislation
does not require Compassion Centers to file as tax exempt nonprofits to the IRS. By
definition however, this business structure does not allow for ownership. Greenleaf will
therefore be under the control of management and a board of directors. Funds in excess
of operation costs, lease hold improvements, salaries and loan repayment obligations will
be donated to local charities.

2.2 Current Position and Business Objectives


After we have moved beyond the start-up phase Greenleaf will seek expansion
opportunities to meet the growing demand for medical marijuana. Having succeeded in
building a thriving medical marijuana business we will strive to branch out into other
industry. This industry includes not only paraphernalia but also clothing and other hemp
and hemp lifestyle products.

2.3 Ownership
The aforementioned managers will draw a salary for their respective executive and
operational duties and will not assume ownership stakes in Greenleaf. Per our nonprofit
status, Greenleaf will not be issuing stocks, but is seeking loans from a variety of
individuals to reach our start-up fundraising goals. Greenleaf will appoint a board of
directors prior to submitting its application for a permit to the State of Rhode Island.
Greenleaf Compassionate Care Center, Inc. 6

3. Products
Our product line will provide a variety of strains to meet the various needs and desires of our
patients. Marijuana cultivators have utilized selective breeding techniques for literally
thousands of years. However with recent technological advances scientists and
horticulturists from numerous countries have created hundreds of new top-quality medicinal
strains. Greenleaf, Inc. will seek out seeds that provide a range of medicinal effects. For
example, some people prefer medical marijuana that has a stimulatory effect, whereas other
prefer strains that increase tranquility and a sense of euphoria. We will help guide people
towards a product that meets their needs with the fewest unwanted sideeffects.

Additionally, we will provide a variety of retail products including paraphernalia, hemp


products, Chinese herbs, instructional materials, books, and CDs.

3.1 Product Overview


Greenleaf will offer a variety of respected and time-tested medical strains.
For example:

Cinderella 99 -- Good for day time use. Provides an energetic, clear head type of
medicinal effect. Also enhances mood and produces feelings of contentment and
wellbeing (antianxiety). Has standard sativa medicinal effects.

NY Kush -- Good for night or daytime consumption. Imparts a very clear-headed feeling
that helps the patient to focus while working. Also a great strain for helping to relieve
back pain.

White Widow -- Produces feelings of euphoria accompanied by an increase in energy


and clear-mindedness.

Purple Kush -- for night time use only. Instantly imparts strong anti-anxiety effects
combined with euphoric thought patterns. Completely reduces body pains within the first
5 minutes of consumption.

We will also be selling ingestible including brownies, cookies, tinctures and infused oils
based on our popular strains.

Retail Menu

Top quality pipes, water pipes and vaporizers


Medical marijuana related books
Meditation and health related books
Chinese herbs
Relaxation and guided meditation CDs
Greenleaf hemp tshirts and other hemp products
Greenleaf Compassionate Care Center, Inc. 7

3.2 Competitive Analysis


At this time there are no Compassionate Care Centers operating in Rhode Island.
Medical mMarijuana patients are either growing their own medicine or acquiring it "on
the street." There is little consensus as to the quality of medicine in these sectors and
most likely there is considerable variation therein.

Unlike small yield growers and street suppliers, Compassion Centers will have the
opportunity to build a cultivation operation with greater quality controls and ability to
explore a variety of growing techniques and thus produce better medicines more
efficiently.

Given the three permit limit, as Aquidneck Island's sole Center, Greenleaf will not be in
direct competition with other Compassion Centers.

3.3 Research and Development


Greenleaf will place great emphasis on researching and developing medicines that best fit
the needs of patients. We will use patient feedback forums including anonymous
web-based tools, in-house surveys and direct feedback documentation to assess patient
satisfaction. To this end, we will also attend regular medical marijuana conventions as a
means of investigating current cultivation techniques and practices. We will test all
medicine using the latest technologies such s Gas Chromatography. This will allow us to
test for purity and potency. Through cross-breeding we will be able to selectively
remove certain unwanted effects, such as anxiogenic properties, and reinforce others such
as clear mindedness.
Greenleaf Compassionate Care Center, Inc. 8

4. Services
In addition to providing high-end medicinal products, Greenleaf will be focusing its creative
energy on providing excellent patient service. We believe that providing a superior product
is but one part of Greenleaf experience. To this end, our patient service efforts will occur on
several fronts.

First, our customer service representatives will undergo training by Greenleaf's founder, Dr.
Seth Bock and its compliance officer, Dennis Reid, R.Ph. Dr. Bock has been hiring and
training staff at his Wellness Spa for nearly ten years. The Wellness Spa industry must
always provide the highest level of customer support, as patients and customers will not
accept anything less. Not only does this entail exceptional people skills but also a high level
of education about the mission of the establishment and the medicines and products being
sold. Mr. Reid , a licensed pharmacist, will be on hand during our hours of operation to help
assist patients needing guidance.

In addition to on-site service, we will explore a variety of outreach opportunities to enhance


patient, healthcare provider and community awareness.

4.1 Service Descriptions


Greenleaf will be offering one-of-a-kind service and care to our patient population. With
a background in patient care we will administer this program with a hands-on approach.
We will be available to offer guidance to both prospective patients and current
card-holding individuals. Dr. Bock and our pharmacist, Dennis Reid, will be available at
the Compassion Center to consult with patients about various product options as well as
health and safety concerns.

Our staff will also be trained to help answer questions about the use of medical
marijuana, the differences between various strains and the benefits of other
complementary therapies.

We will offer to hold regular in-service sessions at local doctors offices. We will also
offer grand-rounds at local hospitals and health care facilities as well as arrange speaking
opportunities with a variety of local organizations. Our mission is to educate the
population about the benefits of medical marijuana.

4.2 Service Delivery


With almost a decade in the health services and wellness industry, we understand the
importance of patient care. All of our Care Center employees will be trained in the art of
customer service. In addition, we will have a health care worker on premises during all
hours of operation.

Delivering friendly and knowledgeable is only half of our mission. Ensuring that a
variety of strains in a variety of price points are available for our patients at all times is
also of utmost importance. Given that some of our patients will be traveling to our
center from afar it is very important that exceptional services and product are provided at
Greenleaf Compassionate Care Center, Inc. 9

all times.

4.3 Research and Development


As Greenleaf grows and adapts to the needs of the local patient population we will
regularly survey our customer base to see what services they are interested in. In
California there are a variety of popular service models that have proven successful. For
example, there are dispensaries that offer a variety of on-site spa services such as
massage and acupuncture. There are other dispensaries that have in-house physicians to
evaluate medical needs. In time, Greenleaf will have a better understanding of which
model best suits the community's needs and will expand into these domains
appropriately.
Greenleaf Compassionate Care Center, Inc. 10

5. The Industry, Competition and Market


Medical marijuana is a rapidly expanding and rapidly evolving industry. To its benefit local,
state and national laws are changing favorably almost weekly. At Greenleaf we see the
Compassion Center as the primary method of bringing people their medicine at an affordable
cost. We do however recognize that the industry might be in an entirely different regulatory
environment a few years from now. We respect our commitment to operating as non-profit.
Thus we will invest our profits back into the business and will donate a percentage to local
charities. However, should Rhode Island laws change in the future, the knowledge base we
will have created will be adaptable to cornering new markets in a different corporate
framework.

Examples of this include the possibility that Marijuana will be legalized which would place
us in a position to corner the legal market. Secondarily, the legalization of hemp for
industrial uses promises to someday be a billion dollar industry that we could easily tap into.

For now, medical marijuana is a niche and highly regulated market in the State of Rhode
Island. Three non-profits will be awarded permits to cultivate, acquire and sell this
medicine. A closed market all but ensures very little competition since in all probability
these centers will be located in different regions of the state.

5.1 Industry Definition


The Medical Marijuana industry is a burgeoning industry in the United States and around
the world. In the US over a dozen states have legalized the medicinal use of marijuana
when prescribed by a physician. To varying degrees, states are now crafting and refining
legislation for the legal retail of medical marijuana at authorized dispensaries. Thus far,
each state has its own model and the models contain significant variability in terms of
regulatory oversight, business design and mission. We have studied these models and
intend on building an Compassion Center esteemed for following the law while pursuing
innovation at every level.

California represents one extreme, wherein dispensaries are not bound by very much
regulation and are creating a rift between those for and against medical marijuana
legislation. Therefore, hundreds of dispensaries have opened without local or state
approval. In the wake of this movement, there has been a backlash against this model of
unrestrained cultivation and dispensation leading to a few high profile court cases against
dispensary owners who have pushed the envelope too far.

On the other hand, there are numerous other dispensaries that are operating with a high
level of financial and political viability in California and other states. These dispensaries
engage their communities and earn their respect. They tend to avoid shady practices,
such as having Medical Doctors on sight for rubber-stamping patient cards and operating
entirely as for-profit establishments. That said, numerous dispensaries have been able to
provide a high quality medicine at an affordable price while netting enough revenue for
operating expenses and well paid management, owners and investors.
Greenleaf Compassionate Care Center, Inc. 11

As noted previously, Rhode Island legislation has created an investment opportunity with
very little market competition. We believe this state will be looking to create an easy
supply of medicine to reach patients from around the state. Geographical convenience
will make it easier for ill patients to procure their medicine. And since the state will only
issue three permits, most observers believe the State will issue permits to applicants in
different corners of the state. Patients may be willing to drive a greater distance for a
better product and better experience. Therefore, our marketing plan is designed to
showcase the superiority of the Greenleaf experience.

As lawmakers and law enforcement agents realize that the varied uses of marijuana pose
little threat to society, while consuming enormous law enforcement resources, medical
medical marijuana's forecast will continue to improve.

In light of this forecast, we believe the Rhode Island Medical Marijuana market is the
perfect investment environment.

5.2 Primary Competitors


As of this time there are three sources of marijuana for Medical Marijuana patients.

1) Marijuana provided by illegitimate street dealers that are illegally selling it.

2) Caregivers: people appointed by patients to grow medicinal marijuana on their behalf.


This is a legal source.

3) Cultivation of Medicinal Marijuana by patients, which is also legal.

At meetings of the Rhode Island Patient Advocacy Coalition (RIPAC) a common


complaint is that patients do not want to procure their medicine on the streets. They have
also had a difficult time growing plants themselves and have had a difficult time finding
competent Caregivers. It was the numerous requests of Rhode Island patients that
motivated the state legislature to adopt the Compassionate Care Center amendment.
Patients have been waiting anxiously for the first Care Center to open.

5.3 Market Size


What makes this industry so exciting is that we are entering into it on the ground floor.
There are approximately 1,250 patients holding medical marijuana cards in Rhode Island.
With a population of approximately 1.1 million, approximately 0.001 percent of R.I.
residents hold a medical marijuana license. That equals roughly 1 patient for every 1000
residents. In California, where the use of medical marijuana has been legal for longer,
for every 1 patient there are approximately 120 residents. In both states, the increase in
authorized patients has not plateaued. In time it would not be unrealistic to see 1 patient
for every 100 citizens. In Rhode Island this would equate to over 10,000 patients. If
Greenleaf captures 10% of that market its annual sales would easily cover its operating
expenses and allow us to service the indigent population more successfully.
Greenleaf Compassionate Care Center, Inc. 12

5.4 Market Growth


Marijuana is the fastest growing cash crop in several states. In California alone,
combined legal and illegal marijuana sales are estimated at 14 billion per year. Medical
Marijuana constitutes 200 million of the total gross revenue. It is estimated that medical
marijuana sales increase at 25%-35% per year in states that have newly enacted medical
marijuana laws. The industry has not been in operation long enough and in enough states
to know for certain when sales in a particular state will reach a plateau. This figure is
dependant on the number of people holding and or seeking a permit to use medical
marijuana. In California, approximately 300,000 people hold medical marijuana cards.
The total population of California is 36 million. Therefore, 1 of every 120 people in
California holds a Medical Marijuana permit. Rhode Island's population is
approximately 1.1 million. Currently, approximately 1,250 people hold medical
marijuana cards, or 1 in every 880 people.

Based on the above statistics we can anticipate a forty-fold increase in prospective


patients.
Greenleaf Compassionate Care Center, Inc. 13

6. Marketing Plan
Greenleaf, Inc. is well situated to put forth a strong marketing campaign. With his wife, Dr.
Julianne Stapleton, Dr. Bock has run a very successful business in the health and wellness
field in this region for the past 8 years. His business, Newport Acupuncture & Wellness Spa,
Inc. (DBA) has a committed following and has earned community wide respect. In 2009 it
received the Newport County Chamber of Commerce Excellence in Business Award and has
won "Best Of" awards from Newport Life Magazine for three years running.

During the past eight years their business has grown considerably and recently underwent its
third expansion. Their success is due mostly to word-of-mouth marketing from happy
patients and clients. In addition, Drs. Bock and Stapleton have mastered the local marketing
infrastructure and know how to create a buzz.

Greenleaf will utilize this experience and these connections to its advantage. Greenleaf will
use the following marketing plans:

1) Advertising in local and state-wide news publications.


2) Advertising through direct email, such as constant contact.
3) Hosting educational forums for health care providers and patients.
4) Arranging grand-rounds at hospitals around the state.
5) Meeting with local doctors with whom we have established relationships.
6) Attending and speaking at regular RIPAC meetings where we will distribute our
materials.

6.1 Competitive Advantage


Although competition will be minimal, Greenleaf intends to create a product experience
that compels patients to patronize our business, rather than growing it themselves or
buying it off the street. From our perspective, there are numerous reasons to buy
Greenleaf product:

1) The majority of people that grow their own medicine are not horticulturists and do not
understand, nor have the resources, to cultivate exceptional medical marijuana. Without
the proper equipment, the perfect environment and the expertise to raise healthy plants,
patients often have difficulty cultivating medicine with high THC levels. Greenleaf
horticultural operations will be under the supervision of master horticulturists who are
capable of bringing a superior product to market.

2) Another complicated task of home-cultivation is having fresh medicine year-round.


Marijuana plants grown indoors are forced to bud by lowering the daily light cycle and
will produce medicine approximately every 3 to 4 months. In order to have a steady
supply of fresh medicine one would need more than one grow room to have plants at
different stages of maturity. A common complaint we've heard from medical marijuana
patients is that they often run out of medicine between yields. Greenleaf will have
multiple grow rooms in its facility and will always have fresh medicine.
Greenleaf Compassionate Care Center, Inc. 14

3) Buying medicine on the street creates several issues for patients. First, although it is
legal for a medical marijuana patient to purchase medicine on the street, it is still illegal
for someone to sell to a medical marijuana patient. Patients have complained that they do
not feel safe purchasing medicine from drug-dealers. There is also the issue of quality.
Street-grade marijuana often has impurities including herbicides and pesticides. Patients
want to know where their medicine is coming from and that it is free of impurities.
Greenleaf will not use any man-made pesticides or herbicides.

4) Patients have also complained that state approved Caregivers (someone legally
appointed by a patient to cultivate marijuana for them) are often not able to consistently
provide medicine. Caregivers complain that cultivating medicine year round is a big
responsibility and time commitment. Although they are happy to help a friend or family
member in need, the burden is often too large. Many Caregivers helped initiate the
petition to create Compassion Centers. With paid employees, Greenleaf will easily
accommodate the year round needs of patients. Consistency of product and consistency
of availability will be at the highest possible level.

6.2 Pricing
Our mission is to provide the highest grade organic medical marijuana at an affordable
price and to service the indigent patient population. Greenleaf will however offer
specialty lines of medicine for those patient looking for more exquisite and harder to
cultivate strains. For a those that can not afford to pay for their medicine, Greenleaf will
institute a free medicine program for patients that meet specific financial criteria.

The street value of marijuana varies considerably depending on the geographical location
and the quality of product. The street value in the northeast states is at the upper end of
the price spectrum; averaging between 40$ to 80$ per eighth ounce. On the other end of
the price spectrum, in states such as California the average street value is between 25$
and 65$ per eighth ounce. Greenleaf, Inc.'s pricing is as follows:

1) 35$/eighth ounce -- standard organic strains.

2) 45$/eighth ounce -- premium organic strains.

3) 55$ and up/eighth ounce -- supreme organic strains.

6.3 Promotional Plan


Greenleaf, Inc. will promote its product using the following methods:

1) Advertising in local and state-wide news publications. During our cumulative


business experience in Newport County, we have run extensive print marketing
Greenleaf Compassionate Care Center, Inc. 15

campaigns and know which publications produce the highest increase in business. We
have included in our budget money for running a weekly ad in a local paper and an add in
the Providence Journal.

2) Advertising through direct email, such as Constant Contact. We will request


permission to use RIPAC's email list to send weekly direct emails to current patients and
caregivers. We have also accumulated email addresses for numerous local physicians
and healthcare practitioners who will be added to our email campaign.

3) Hosting educational forums for health care providers and patients. Using email lists
acquired over the past 8 years of operation at Newport Acupuncture and Wellness, Spa,
and local print, we will advertise Question and Answer sessions at local meeting halls,
such as public libraries and the Chamber of Commerce.

4) Arranging grand-rounds at hospitals around the state to educate MDs about how and
when to prescribe. One of the biggest impediments for potential medical marijuana
patients is getting a "prescription" from their physician. Many physicians also have a
difficult time discussing the pro's and con's of medical marijuana, as the use of marijuana
as a medicine was not a part of their medical education. To remedy this, we will engage
and encourage regional hospitals to host medical marijuana grand rounds.

5) Meeting with local doctors with whom we have established relationships. Denis Reid,
R.Ph. and Dr. Bock, will utilize their extensive contacts in the medical community and
arrange lunches and office meetings with interested health care providers.

6) Attending regular GRIPSACK meetings where we will distribute our materials. the
Rhode Island Patient Advocacy Coalition is a non-profit organization that helps potential
and current medical marijuana patients navigate the decision making and regulatory
process. Each monthly meeting is usually attended by dozens of potential new patients.
We will attend these meetings monthly and to answer questions as well as distribute
materials.

7) Developing positive word-of-mouth patient referral networks. We believe the best


method of growing a business is by word-of-mouth. By producing a high quality product
but also creating an interesting, safe and relaxing environment we will instill a desire for
current patients to visit our store. People will want to see our facilities and discover what
we have to offer based on our stellar reputation.

6.4 Feedback
No business concept is perfect. Therefore, we will implement a multifaceted feedback
mechanism to ensure that we are satisfying the needs and desires of our patient
population. Our salespeople will have a solid knowledge of patients' buying habits and
preferences. Will will regularly survey our clientele as a means of making sure patients
are happy. We will also give patients an opportunity to answer questionnaires when
they're in store and through direct mail. Lastly, our web-site will have a patient -only
blog where we can address inquiries and encourage feedback.
Greenleaf Compassionate Care Center, Inc. 16

7. Operating Plan
We believe that a great idea can only succeed with a proper operational foundation. We have
spent countless hours studying the methods of successful dispensaries in California and
elsewhere. Our cumulative experiences of owning a wellness spa, running a Chinese herbal
dispensary, managing horticultural gardens and managing a pharmacy have significant
overlap with the "nuts and bolts" of operating a Compassionate Care Center. We believe this
gives us the experience and know-how to efficiently and effectively run a Compassionate
Care Center.

Furthermore, we have selected a board of directors with considerable experience in profit and
not for profit business settings. We intend to involve our board in the strategic
implementation of our mission.

7.1 Location
Greenleaf has leased a facility in the town of Porstmouth that will encompass our
cultivation facilities and compassion center. The cultivation center is where we will be
growing the medical marijuana. There will be no sales and no patient access to this
section of the facility. Aquidneck Island, home to Portsmouth, is a destination people
enjoy visiting. We believe patients will be more likely to travel to here to purchase their
medicine than other towns with fewer attractions or the City of Providence whose traffic
is an impediment.

7.2 Facility
Cultivation Center
Our facility we is a light industrial warehouse type structure with high ceilings and
concrete slab floors. The building contains several such units many of which have been
turned into upscale retail shops. Temporary partitions will be constructed to create
several grow rooms within the structure. This will enable us to raise plants at different
stages of maturity. The Cultivation center will require numerous specialty lights,
back-up generators, large specialty pots for the plants and numerous other small
gardening tools and implements.

Compassion Center
The other half of our unit will be devoted to the construction of our elegant and safe
compassion center. People will be recognized via video feed and buzzed in if they're
holding a valid Medical Marijuana card. The facility will need display cases, counters,
computers, registers, seating, carpeting and art work. We will create an inviting yet
relaxed environment. In order to keep the medicine affordable we will not initially be
investing in a large retail space. As the business grows however we will relocate to a
larger facility to meet the demands of our patient base.

The compassion center will be divided into two rooms: a retail room and a back room for
testing, packaging and office management. Patients will not have access to the back
room, which will be off limits.
Greenleaf Compassionate Care Center, Inc. 17

7.3 Suppliers and Vendors

Greenleaf will rely on local suppliers of organic gardening supplies for soil, all natural
herb and pesticides and gardening equipment. Specialty cultivation products such as
metal halide lights will be purchased at "Good to Grow Garden Supply" in West
Greenwich, RI.

7.4 General Operations


Hours of Operation
Greenleaf will initially be open Monday, Wednesday and Friday 12 to 7 PM and
Saturdays 12 to 4PM. As demand increases the hours of operation will reflect the needs
of our patient base.

Regulatory Compliance
Greenleaf will strictly adhere to local, state and federal regulations. Our management
team has developed standard operating policies for regulatory compliance. These SOPs
will be reviewed and voted on by our board of directors. The manager of each division
will be responsible for implementing and regular tracking of policy adherence.
Greenleaf Compassionate Care Center, Inc. 18

8. Management, Organization and Ownership


As is typical for a non-profit, Greenleaf has a three-tiered structure: Management, Board of
Directors and Employees. Our management consists of Dr. Seth Bock who has extensive
experience in the health and wellness industry, Dr. David Cunningham who has been an
internist for over twenty years and has gained extensive knowledge of non profit health care
services as the Chairperson for Newport Hospital's Board of Directors, Richard Radebach,
who has a lengthy public health backgroud, Dennis Reid, R.Ph., who is registered pharmacist
and Bruce Vanicek, our horticulturalist, who is a current medical marijuana caregiver.

8.1 Management/Principals
Ownership
Dr. Seth Bock ---------------------- Founder
Partners ----------------------------- Available for Purchase

Management
Chief Executive Officer ---------- Dr. Seth Bock
Chief Compliance Officer --------Dennis Reid, R.Ph.
Chief Financial Officer ----------- Richard Radebach, M.A.
Chief Medical Officer ------------- David Cunningham, M.D.
Chief Horticultural Officer---------Bruce Vanicek

Board of Directors
Seth Bock, D.A.
Dennis Reid, R.Ph.
Julianne Stapleton, D.A.
Gay Ben Tre, D.A., R.N.
Mervin Woolf, M.D.
Robert Donahue
Linda Phelan, LMT
Patrick Rimoshytus
Eric Archer, J.D.

Employees
Cultivation Center Staff
Compassion Center Staff

Consultants
Michael Correa - Security
Michael Cavanagh - Horticulture
Carol Beekman - Bookkeeping
Greenleaf Compassionate Care Center, Inc. 19

8.2 Organizational Structure


During the start-up phase of operation Greenleaf will be staffed by its directors.

Dr. Seth Bock will oversee all aspects of the business including the building, the
cultivation operation, setting up care center protocols, hiring employees and establishing
the security program and developing an education and marketing program.

Dennis Reid, R.Ph. will report to Dr. Bock and direct all aspects of the business during
the start-up phase. After the start-up phase he will be responsible for ensuring the quality
of medicine utilizing proper pharmaceutical techniques. He will oversee inventory and
packaging of product. All other staff and directors will report to him on a daily basis.

Bruce Vanicek, B.S. (Horticulture) will be responsible for designing, developing and
implementing the horticultural component of the operation. He will be responsible for
purchasing necessary equipment, installing lighting and maintaining the highest level of
plant care during all stages of development. He will also be responsible for supervising
any and all horticulture involved in the business.

Dr. David Cunningham our Chief Medical Officer will be responsible for overseeing
patient safety, confidentiality protocols and product safety.

Richard Radebach, M.S. The Chief Financial Officer (CFO) provides both operational
and programmatic support to our non-profit organization. The CFO supervises the
finances component of our operation and is the chief financial spokesperson for the
organization. The CFO reports directly to the Chief Executive Officer (CEO) and directly
assists with the strategic and tactical matters as they relate to budget management, cost
benefit analysis, forecasting needs and the securing of new funding.

Mike Correa will be our on-site security and safety consultant. He will design, develop
and implement our security and safety protocols at the cultivation and compassion
centers. He will report to Dennis Reid and Dr. Bock weekly and as needed.

Greenleaf, Inc will employ staff members as needed.

Board of Directors
Our Board of Directors will be responsible for ensuring that the mission of Greenleaf is
carried out to the fullest extent.

8.3 Professional Consultants


Greenleaf, Inc. will utilize the following professional consultants

Eric Archer, JD- Mr. Archer will represent Greenleaf in all legal matters relating to
organizational structure, non profit law and regulatory compliance.

Carol Beekman- Ms. Beekman, who has done a superb job maintaining the books of
Greenleaf Compassionate Care Center, Inc. 20

Newport Acupuncture & Wellness Spa, will be contracted to maintain our bookkeeping
and the filing of state and federal taxes.
Greenleaf Compassionate Care Center, Inc. 21

9. Goals and Strategies


Greenleaf goal is to provide the highest quality of organic medical marijuana to cardholding
patients in a safe and hospitable environment, while adhering to all applicable Rhode Island
laws. Through education and outreach we will seek to reach all patients who will benefit
from the use of medical marijuana.

Our long-term goals are to meet the demand for medical marijuana without sacrificing
quality and integrity. We also plan on expanding other aspects of our business including
paraphernalia and life style products.

Attaining our goals will not be easy. There are numerous regulatory hurdles that must be
crossed. We must overcome the stigma of medical marijuana by educating the populace.
We believe that we, more than our competitors, hold the keys to success in this industry.

9.1 Business Goals


Short Range Goals

1) To be awarded the first Compassionate Care Center permit in Rhode Island.


2) To satisfy our obligation to operate as a non-profit for the benefit of patients.
3) To cultivate superb organic medical-grade marijuana of multiple strains.
4) To build an operation that satisfies the demands of our patient base.
5) To engender community trust by working with local officials and law enforcement.
6) To exceed our gross income projection of $1,000,00 by the end of the third year of
operation.
7) To educate patients and health care workers about the benefits and risks of medical
marijuana.

Long Range Goals

1) To maintain our patient oriented mission without compromising quality and integrity.
2) To expand our retail component and develop brand recognition
3) To exceed one million dollars in sales by the end of our second year of operation.
4) To promote and lobby for the medical marijuana and hemp industries
5) To expand our Compassionate Care Center to offer adjunctive spa services.

9.2 Keys to Success


We feel very positive that Greenleaf will achieve its mission and financial goals as
outlined in previous sections. The main focus at this point is winning the permit. To this
end we have produced a strong operational plan. In order to bring this plan to life we are
seeking your financial support. Greenleaf needs your written obligation confirming
that when we receive the permit to open a compassionate care center, your loan will be
received.
Greenleaf Compassionate Care Center, Inc. 22

The keys to our success that will make your sponsorship worthwhile, and are as follows:

1) Strong success and dedication in serving patients in a community health and wellness
setting.

2) Greenleaf's team will bring together experts in every facet of this industry that are
required to excel.

3) A successful marketing plan based on 8 years of business experience in this


geographical region.

4) A mission to build trust in the community by operating with a patient-driven agenda.

5) Our commitment to expand Greenleaf in new directions as new markets open.

9.3 Future Plans


Greenleaf will seek to diversify its business interests as new market opportunities become
available. These interests can be divided into two categories, legislation-dependant and
legislation-independent. For example, without changes to current legislation Greenleaf
can expand its retail of paraphernalia and lifestyle products. Conversely, with changes to
the legislation for example, Greenleaf or a related entity, could foreseeably move into the
hemp cultivation and product industry.

Legislation Independent
As Greenleaf revenues increase we will look forward to expanding our operation to
include a larger Compassion Center. This facility will be able to accommodate expanded
retail items, patient gathering spaces, a kitchen for producing and teaching patients how
to produce edibles and a class room for seminars. We believe this space will generate
interest in medical marijuana and lead to greatly expanded sales.

Legislation Dependant
Should the federal or state government decide to legalize hemp production or legalize
marijuana for recreational use Greenleaf, or a related entity, would be well situated to
pursue opportunities in these new markets.
Greenleaf Compassionate Care Center, Inc. 23

10. Financial Assumptions


We have based our assumptions and projections on data accumulated in consultation with
existing non-profit Compassion Centers. Our income projections are based on average
medical consumption figures from California and the average price point we will be offering
to our patients. We are assuming that Greenleaf will grow by ten new patients per month and
that average consumption will reflect that seen in other states. Our projections are carried
out through our third fiscal year of operation and given our formula we anticipate that we
will be providing care for 360 card-holding patients.

Our expense calculations, including savings for debt and interest repayment, were provided
by Californian Compassion Center owners familiar with the nuts-and-bolts of operating
dispensaries and large-scale grow rooms as well as numerous news reports documenting
Compassion Center revenues. We believe these figures to be accurate, however we realize
every Compassion Center creates a different set of expense requirements. And, given the
incipient nature of this industry, few published studies of Compassion Center profitiability, if
any, are available.

10.1 Assumptions
The following information explains the financial projections for Greenleaf
Compassionate Care Center, Inc.

PROFIT & LOSS

Sales:
Monthly straight-line increase in sales of $3,640.
Year One total projected sales of $295,920
Year Two total projected sales of $816,160
Year Three total projected sales of $1,325,540

Cost of Sales:
Year One total expenses $397,800
Year Two total expenses $397,800
Year Three total Expenses $470,400

Net Revenue after three years: $1,171,620

Performance metrics:
Having acheived our net revenue projection of $1,171,620 by the end of year three Loan
providers will receive a "bump-up" of 5 percent for years four and five of their loan.
Greenleaf Compassionate Care Center, Inc. 24

11. Appendix
This section contains the following reports and supporting documentation:

• Income Projection
• Expense Projection
• Profit & Loss
• Balance Sheet
• Cash Plan
• Ratio Analysis
Greenleaf Compassionate Care Center, Inc.
Income Projection
For year ending July, 2011

Income Category Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Year 1
Medical Marijuana 3,640 7,280 10,920 14,560 18,200 21,840 25,480 29,120 32,760 36,400 40,040 43,680 283,920
Paraphrenalia & Novelties 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12,000
Total Income 4,640 8,280 11,920 15,560 19,200 22,840 26,480 30,120 33,760 37,400 41,040 44,680 295,920

25
Greenleaf Compassionate Care Center, Inc.
Income Projection
For year ending July, 2012

Income Category Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Year 2
Medical Marijuana 47,320 50,960 54,600 58,240 61,880 65,520 69,160 72,800 76,440 78,400 82,040 86,800 804,160
Paraphrenalia & Novelties 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12,000
Total Income 48,320 51,960 55,600 59,240 62,880 66,520 70,160 73,800 77,440 79,400 83,040 87,800 816,160

26
Greenleaf Compassionate Care Center, Inc.
Income Projection
For year ending July, 2013

Income Category Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Year 3
Medical Marijuana 90,440 94,080 97,720 101,360 105,000 108,640 112,280 115,920 119,560 123,200 126,850 130,490 1,325,540
Paraphrenalia & Novelties 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12,000
Total Income 91,440 95,080 98,720 102,360 106,000 109,640 113,280 116,920 120,560 124,200 127,850 131,490 1,337,540

27
Greenleaf Compassionate Care Center, Inc.
Expense Projection
For year ending July, 2011

Expense Category Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Year 1
Staff Payroll w/Fringes 12,498 12,498 12,498 12,498 12,498 12,498 12,498 12,498 12,498 12,498 12,498 12,498 149,976
Medical Marijuana Growing 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12,000
Supplies 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12,000
Office Expenses 300 300 300 300 300 300 300 300 300 300 300 300 3,600
Utilities 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 14,400
Insurance 274 274 274 274 274 274 274 274 274 274 274 274 3,288
Depreciation/Amortization 2,600 2,600 2,600 2,600 2,600 3,692 3,692 3,692 3,692 3,692 3,692 3,692 38,844
Leasehold Expenses 0 0 0 0 0 0 0 0 0 0 0 0 0
Bad Debt 0 0 0 0 0 0 0 0 0 0 0 0 0
Total Expenses 18,872 18,872 18,872 18,872 18,872 19,964 19,964 19,964 19,964 19,964 19,964 19,964 234,108

28
Greenleaf Compassionate Care Center, Inc.
Expense Projection
For year ending July, 2012

Expense Category Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Year 2
Staff Payroll w/Fringes 12,498 12,498 12,498 12,498 12,498 12,498 12,498 12,498 12,498 12,498 12,498 12,498 149,976
Medical Marijuana Growing 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12,000
Supplies 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12,000
Office Expenses 300 300 300 300 300 300 300 300 300 300 300 300 3,600
Utilities 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 14,400
Insurance 274 274 274 274 274 274 274 274 274 274 274 274 3,288
Depreciation/Amortization 3,692 3,692 3,692 3,692 3,692 2,666 2,666 2,666 2,666 2,666 2,666 2,666 37,122
Leasehold Expenses 0 0 0 0 0 0 0 0 0 0 0 0 0
Bad Debt 0 0 0 0 0 0 0 0 0 0 0 0 0
Total Expenses 19,964 19,964 19,964 19,964 19,964 18,938 18,938 18,938 18,938 18,938 18,938 18,938 232,386

29
Greenleaf Compassionate Care Center, Inc.
Expense Projection
For year ending July, 2013

Expense Category Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Year 3
Staff Payroll w/Fringes 12,498 12,498 12,498 12,498 12,498 0 0 0 0 0 0 0 62,490
Medical Marijuana Growing 1,000 1,000 1,000 1,000 1,000 0 0 0 0 0 0 0 5,000
Supplies 1,000 1,000 1,000 1,000 1,000 0 0 0 0 0 0 0 5,000
Office Expenses 300 300 300 300 300 0 0 0 0 0 0 0 1,500
Utilities 1,200 1,200 1,200 1,200 1,200 0 0 0 0 0 0 0 6,000
Insurance 274 274 274 274 274 0 0 0 0 0 0 0 1,370
Depreciation/Amortization 2,666 2,666 2,666 2,666 2,666 0 0 0 0 0 0 0 13,330
Leasehold Expenses 0 0 0 0 0 0 0 0 0 0 0 0 0
Bad Debt 0 0 0 0 0 0 0 0 0 0 0 0 0
Total Expenses 18,938 18,938 18,938 18,938 18,938 0 0 0 0 0 0 0 94,690

30
Greenleaf Compassionate Care Center, Inc.
Profit & Loss Statement
For year ending July, 2011

Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Year 1
Income 4,640 8,280 11,920 15,560 19,200 22,840 26,480 30,120 33,760 37,400 41,040 44,680 295,920
Less COGS:
Other 500 500 500 500 500 500 500 500 500 500 500 500 6,000
Total COGS 500 500 500 500 500 500 500 500 500 500 500 500 6,000
Gross profit 4,140 7,780 11,420 15,060 18,700 22,340 25,980 29,620 33,260 36,900 40,540 44,180 289,920
Operating expenses:
Staff Payroll w/Fringes 12,498 12,498 12,498 12,498 12,498 12,498 12,498 12,498 12,498 12,498 12,498 12,498 149,976
Medical Marijuana Growing 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12,000
Supplies 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12,000
Office Expenses 300 300 300 300 300 300 300 300 300 300 300 300 3,600
Utilities 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 14,400
Insurance 274 274 274 274 274 274 274 274 274 274 274 274 3,288
Depreciation/Amortization 2,600 2,600 2,600 2,600 2,600 3,692 3,692 3,692 3,692 3,692 3,692 3,692 38,844
Leasehold Expenses 0 0 0 0 0 0 0 0 0 0 0 0 0
Bad Debt 0 0 0 0 0 0 0 0 0 0 0 0 0
Amortization 100 100 100 100 100 100 100 100 100 100 100 100 1,200
Depreciation 2,594 2,594 2,594 2,594 2,594 2,594 2,594 2,594 2,594 2,594 2,594 2,594 31,126
Total operating expenses 21,566 21,566 21,566 21,566 21,566 22,658 22,658 22,658 22,658 22,658 22,658 22,658 266,434
Operating income (17,426) (13,786) (10,146) (6,506) (2,866) (318) 3,322 6,962 10,602 14,242 17,882 21,522 23,486
Interest expense 5,333 5,275 5,215 5,155 5,094 5,032 4,970 4,906 4,842 4,777 4,711 4,644 59,956
Net income (22,759) (19,061) (15,361) (11,661) (7,960) (5,350) (1,648) 2,056 5,760 9,465 13,171 16,878 (36,471)

31
Greenleaf Compassionate Care Center, Inc.
Profit & Loss Statement
For year ending July, 2012

Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Year 2
Income 48,320 51,960 55,600 59,240 62,880 66,520 70,160 73,800 77,440 79,400 83,040 87,800 816,160
Less COGS:
Other 500 500 500 500 500 500 500 500 500 500 500 500 6,000
Total COGS 500 500 500 500 500 500 500 500 500 500 500 500 6,000
Gross profit 47,820 51,460 55,100 58,740 62,380 66,020 69,660 73,300 76,940 78,900 82,540 87,300 810,160
Operating expenses:
Staff Payroll w/Fringes 12,498 12,498 12,498 12,498 12,498 12,498 12,498 12,498 12,498 12,498 12,498 12,498 149,976
Medical Marijuana Growing 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12,000
Supplies 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12,000
Office Expenses 300 300 300 300 300 300 300 300 300 300 300 300 3,600
Utilities 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 14,400
Insurance 274 274 274 274 274 274 274 274 274 274 274 274 3,288
Depreciation/Amortization 3,692 3,692 3,692 3,692 3,692 2,666 2,666 2,666 2,666 2,666 2,666 2,666 37,122
Leasehold Expenses 0 0 0 0 0 0 0 0 0 0 0 0 0
Bad Debt 0 0 0 0 0 0 0 0 0 0 0 0 0
Amortization 100 100 100 100 100 100 100 100 100 100 100 100 1,200
Depreciation 2,594 2,594 2,594 2,594 2,594 2,594 2,594 2,594 2,594 2,594 2,594 2,594 31,126
Total operating expenses 22,658 22,658 22,658 22,658 22,658 21,632 21,632 21,632 21,632 21,632 21,632 21,632 264,712
Operating income 25,162 28,802 32,442 36,082 39,722 44,388 48,028 51,668 55,308 57,268 60,908 65,668 545,448
Interest expense 4,576 4,508 4,438 4,368 4,296 4,224 4,150 4,076 4,001 3,924 3,847 3,769 50,176
Net income 20,586 24,294 28,004 31,715 35,426 40,164 43,878 47,592 51,307 53,344 57,061 61,900 495,271

32
Greenleaf Compassionate Care Center, Inc.
Profit & Loss Statement
For year ending July, 2013

Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Year 3
Income 91,440 95,080 98,720 102,360 106,000 109,640 113,280 116,920 120,560 124,200 127,850 131,490 1,337,540
Less COGS:
Other 500 500 500 500 500 500 500 500 500 500 500 500 6,000
Total COGS 500 500 500 500 500 500 500 500 500 500 500 500 6,000
Gross profit 90,940 94,580 98,220 101,860 105,500 109,140 112,780 116,420 120,060 123,700 127,350 130,990 1,331,540
Operating expenses:
Staff Payroll w/Fringes 12,498 12,498 12,498 12,498 12,498 0 0 0 0 0 0 0 62,490
Medical Marijuana Growing 1,000 1,000 1,000 1,000 1,000 0 0 0 0 0 0 0 5,000
Supplies 1,000 1,000 1,000 1,000 1,000 0 0 0 0 0 0 0 5,000
Office Expenses 300 300 300 300 300 0 0 0 0 0 0 0 1,500
Utilities 1,200 1,200 1,200 1,200 1,200 0 0 0 0 0 0 0 6,000
Insurance 274 274 274 274 274 0 0 0 0 0 0 0 1,370
Depreciation/Amortization 2,666 2,666 2,666 2,666 2,666 0 0 0 0 0 0 0 13,330
Leasehold Expenses 0 0 0 0 0 0 0 0 0 0 0 0 0
Bad Debt 0 0 0 0 0 0 0 0 0 0 0 0 0
Amortization 100 100 100 100 100 100 100 100 100 100 100 100 1,200
Depreciation 2,594 2,594 2,594 2,594 2,594 2,594 2,594 2,594 2,594 2,594 2,594 2,594 31,126
Total operating expenses 21,632 21,632 21,632 21,632 21,632 2,694 2,694 2,694 2,694 2,694 2,694 2,694 127,016
Operating income 69,308 72,948 76,588 80,228 83,868 106,446 110,086 113,726 117,366 121,006 124,656 128,296 1,204,524
Interest expense 3,689 3,609 3,527 3,444 3,361 3,276 3,190 3,102 3,014 2,925 2,834 2,742 38,712
Net income 65,619 69,340 73,061 76,784 80,508 103,171 106,897 110,624 114,352 118,082 121,822 125,554 1,165,812

33
Greenleaf Compassionate Care Center, Inc.
Balance Sheet
For year ending July, 2011

Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Year 1
Assets:
Current assets:
Cash 165,041 144,222 127,042 113,503 103,604 96,253 92,541 92,470 96,039 103,248 114,097 128,585 128,585
Total current assets 165,041 144,222 127,042 113,503 103,604 96,253 92,541 92,470 96,039 103,248 114,097 128,585 128,585
Fixed assets (net) 201,906 199,312 196,718 194,125 191,531 188,937 186,343 183,749 181,155 178,561 175,967 173,374 173,374
Other assets (net) 5,900 5,800 5,700 5,600 5,500 5,400 5,300 5,200 5,100 5,000 4,900 4,800 4,800
Total assets 372,847 349,334 329,461 313,228 300,635 290,589 284,184 281,419 282,294 286,809 294,964 306,759 306,759

Liabilities and equity:


Current liabilities:
Notes payable 0 0 0 0 0 0 0 0 0 0 0 0 0
Current maturities 57,527 58,294 59,072 59,859 60,657 61,466 62,286 63,116 63,958 64,810 65,675 66,550 66,550
Total current liabilities 57,527 58,294 59,072 59,859 60,657 61,466 62,286 63,116 63,958 64,810 65,675 66,550 66,550
Long-term liabilities (net) 338,079 332,859 327,570 322,211 316,780 311,276 305,699 300,048 294,321 288,518 282,638 276,679 276,679
Total liabilities 395,606 391,154 386,642 382,070 377,437 372,742 367,985 363,164 358,279 353,329 348,313 343,230 343,230
Equity (22,759) (41,820) (57,181) (68,842) (76,802) (82,153) (83,800) (81,745) (75,985) (66,520) (53,349) (36,471) (36,471)
Total liabilities and equity 372,847 349,334 329,461 313,228 300,635 290,589 284,184 281,419 282,294 286,809 294,964 306,759 306,759

34
Greenleaf Compassionate Care Center, Inc.
Balance Sheet
For year ending July, 2012

Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Year 2
Assets:
Current assets:
Cash 146,714 168,483 193,892 222,940 255,629 292,984 333,979 378,614 426,888 477,123 530,998 589,633 589,633
Total current assets 146,714 168,483 193,892 222,940 255,629 292,984 333,979 378,614 426,888 477,123 530,998 589,633 589,633
Fixed assets (net) 170,780 168,186 165,592 162,998 160,404 157,810 155,217 152,623 150,029 147,435 144,841 142,247 142,247
Other assets (net) 4,700 4,600 4,500 4,400 4,300 4,200 4,100 4,000 3,900 3,800 3,700 3,600 3,600
Total assets 322,194 341,269 363,984 390,339 420,334 454,994 493,295 535,236 580,817 628,358 679,539 735,480 735,480

Liabilities and equity:


Current liabilities:
Notes payable 0 0 0 0 0 0 0 0 0 0 0 0 0
Current maturities 67,438 68,337 69,248 70,171 71,107 72,055 73,016 73,989 74,976 75,975 76,988 78,015 78,015
Total current liabilities 67,438 68,337 69,248 70,171 71,107 72,055 73,016 73,989 74,976 75,975 76,988 78,015 78,015
Long-term liabilities (net) 270,641 264,523 258,322 252,039 245,673 239,221 232,683 226,059 219,346 212,543 205,650 198,664 198,664
Total liabilities 338,079 332,859 327,570 322,211 316,780 311,276 305,699 300,048 294,321 288,518 282,638 276,679 276,679
Equity (15,885) 8,410 36,414 68,128 103,554 143,718 187,596 235,188 286,496 339,840 396,901 458,801 458,801
Total liabilities and equity 322,194 341,269 363,984 390,339 420,334 454,994 493,295 535,236 580,817 628,358 679,539 735,480 735,480

35
Greenleaf Compassionate Care Center, Inc.
Balance Sheet
For year ending July, 2013

Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Year 3
Assets:
Current assets:
Cash 651,908 717,822 787,377 860,572 937,407 1,036,819 1,139,872 1,246,565 1,356,898 1,470,871 1,588,493 1,709,756 1,709,756
Total current assets 651,908 717,822 787,377 860,572 937,407 1,036,819 1,139,872 1,246,565 1,356,898 1,470,871 1,588,493 1,709,756 1,709,756
Fixed assets (net) 139,653 137,060 134,466 131,872 129,278 126,684 124,090 121,496 118,902 116,309 113,715 111,121 111,121
Other assets (net) 3,500 3,400 3,300 3,200 3,100 3,000 2,900 2,800 2,700 2,600 2,500 2,400 2,400
Total assets 795,061 858,282 925,143 995,644 1,069,785 1,166,503 1,266,862 1,370,861 1,478,500 1,589,779 1,704,708 1,823,277 1,823,277

Liabilities and equity:


Current liabilities:
Notes payable 0 0 0 0 0 0 0 0 0 0 0 0 0
Current maturities 79,055 80,109 81,177 82,260 83,356 84,468 85,594 86,735 87,892 89,064 90,251 91,455 91,455
Total current liabilities 79,055 80,109 81,177 82,260 83,356 84,468 85,594 86,735 87,892 89,064 90,251 91,455 91,455
Long-term liabilities (net) 191,586 184,413 177,145 169,780 162,316 154,753 147,089 139,323 131,454 123,479 115,398 107,210 107,210
Total liabilities 270,641 264,523 258,322 252,039 245,673 239,221 232,683 226,059 219,346 212,543 205,650 198,664 198,664
Equity 524,420 593,759 666,820 743,604 824,112 927,282 1,034,179 1,144,803 1,259,155 1,377,236 1,499,058 1,624,613 1,624,613
Total liabilities and equity 795,061 858,282 925,143 995,644 1,069,785 1,166,503 1,266,862 1,370,861 1,478,500 1,589,779 1,704,708 1,823,277 1,823,277

36
Greenleaf Compassionate Care Center, Inc.
Cash Plan
For year ending July, 2011

Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Year 1
Cash receipts 4,640 8,280 11,920 15,560 19,200 22,840 26,480 30,120 33,760 37,400 41,040 44,680 295,920
Operating cash expenses:
Inventory purchases 0 0 0 0 0 0 0 0 0 0 0 0 0
Other costs of sales 500 500 500 500 500 500 500 500 500 500 500 500 6,000
Other expenses 18,872 18,872 18,872 18,872 18,872 19,964 19,964 19,964 19,964 19,964 19,964 19,964 234,108
Total operating cash exp. 19,372 19,372 19,372 19,372 19,372 20,464 20,464 20,464 20,464 20,464 20,464 20,464 240,108
Cash from operations (14,732) (11,092) (7,452) (3,812) (172) 2,376 6,016 9,656 13,296 16,936 20,576 24,216 55,812
Debt activities:
Principal payments (4,394) (4,452) (4,512) (4,572) (4,633) (4,695) (4,757) (4,821) (4,885) (4,950) (5,016) (5,083) (56,770)
Interest payments (5,333) (5,275) (5,215) (5,155) (5,094) (5,032) (4,970) (4,906) (4,842) (4,777) (4,711) (4,644) (59,956)
Total debt activities (9,727) (9,727) (9,727) (9,727) (9,727) (9,727) (9,727) (9,727) (9,727) (9,727) (9,727) (9,727) (116,727)
Net cash after debt service (24,459) (20,819) (17,179) (13,539) (9,899) (7,351) (3,711) (71) 3,569 7,209 10,849 14,489 (60,915)
Change in cash (24,459) (20,819) (17,179) (13,539) (9,899) (7,351) (3,711) (71) 3,569 7,209 10,849 14,489 (60,915)
Beginning cash 189,500 165,041 144,222 127,042 113,503 103,604 96,253 92,541 92,470 96,039 103,248 114,097 189,500
Ending cash 165,041 144,222 127,042 113,503 103,604 96,253 92,541 92,470 96,039 103,248 114,097 128,585 128,585

37
Greenleaf Compassionate Care Center, Inc.
Cash Plan
For year ending July, 2012

Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Year 2
Cash receipts 48,320 51,960 55,600 59,240 62,880 66,520 70,160 73,800 77,440 79,400 83,040 87,800 816,160
Operating cash expenses:
Inventory purchases 0 0 0 0 0 0 0 0 0 0 0 0 0
Other costs of sales 500 500 500 500 500 500 500 500 500 500 500 500 6,000
Other expenses 19,964 19,964 19,964 19,964 19,964 18,938 18,938 18,938 18,938 18,938 18,938 18,938 232,386
Total operating cash exp. 20,464 20,464 20,464 20,464 20,464 19,438 19,438 19,438 19,438 19,438 19,438 19,438 238,386
Cash from operations 27,856 31,496 35,136 38,776 42,416 47,082 50,722 54,362 58,002 59,962 63,602 68,362 577,774
Debt activities:
Principal payments (5,151) (5,220) (5,289) (5,360) (5,431) (5,503) (5,577) (5,651) (5,727) (5,803) (5,880) (5,959) (66,550)
Interest payments (4,576) (4,508) (4,438) (4,368) (4,296) (4,224) (4,150) (4,076) (4,001) (3,924) (3,847) (3,769) (50,176)
Total debt activities (9,727) (9,727) (9,727) (9,727) (9,727) (9,727) (9,727) (9,727) (9,727) (9,727) (9,727) (9,727) (116,727)
Net cash after debt service 18,129 21,769 25,409 29,049 32,689 37,355 40,995 44,635 48,275 50,235 53,875 58,635 461,047
Change in cash 18,129 21,769 25,409 29,049 32,689 37,355 40,995 44,635 48,275 50,235 53,875 58,635 461,047
Beginning cash 128,585 146,714 168,483 193,892 222,940 255,629 292,984 333,979 378,614 426,888 477,123 530,998 128,585
Ending cash 146,714 168,483 193,892 222,940 255,629 292,984 333,979 378,614 426,888 477,123 530,998 589,633 589,633

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Greenleaf Compassionate Care Center, Inc.
Cash Plan
For year ending July, 2013

Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Year 3
Cash receipts 91,440 95,080 98,720 102,360 106,000 109,640 113,280 116,920 120,560 124,200 127,850 131,490 1,337,540
Operating cash expenses:
Inventory purchases 0 0 0 0 0 0 0 0 0 0 0 0 0
Other costs of sales 500 500 500 500 500 500 500 500 500 500 500 500 6,000
Other expenses 18,938 18,938 18,938 18,938 18,938 0 0 0 0 0 0 0 94,690
Total operating cash exp. 19,438 19,438 19,438 19,438 19,438 500 500 500 500 500 500 500 100,690
Cash from operations 72,002 75,642 79,282 82,922 86,562 109,140 112,780 116,420 120,060 123,700 127,350 130,990 1,236,850
Debt activities:
Principal payments (6,038) (6,119) (6,200) (6,283) (6,367) (6,452) (6,538) (6,625) (6,713) (6,803) (6,893) (6,985) (78,015)
Interest payments (3,689) (3,609) (3,527) (3,444) (3,361) (3,276) (3,190) (3,102) (3,014) (2,925) (2,834) (2,742) (38,712)
Total debt activities (9,727) (9,727) (9,727) (9,727) (9,727) (9,727) (9,727) (9,727) (9,727) (9,727) (9,727) (9,727) (116,727)
Net cash after debt service 62,275 65,915 69,555 73,195 76,835 99,413 103,053 106,693 110,333 113,973 117,623 121,263 1,120,123
Change in cash 62,275 65,915 69,555 73,195 76,835 99,413 103,053 106,693 110,333 113,973 117,623 121,263 1,120,123
Beginning cash 589,633 651,908 717,822 787,377 860,572 937,407 1,036,819 1,139,872 1,246,565 1,356,898 1,470,871 1,588,493 589,633
Ending cash 651,908 717,822 787,377 860,572 937,407 1,036,819 1,139,872 1,246,565 1,356,898 1,470,871 1,588,493 1,709,756 1,709,756

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Greenleaf Compassionate Care Center, Inc.
Ratio Analysis
For year ending July, 2011

Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Year 1
Profitability ratios:
Gross profit margin 89.22% 93.96% 95.81% 96.79% 97.40% 97.81% 98.11% 98.34% 98.52% 98.66% 98.78% 98.88% 97.97%
Operating profit margin -375.56% -166.50% -85.12% -41.81% -14.93% -1.39% 12.55% 23.11% 31.40% 38.08% 43.57% 48.17% 7.94%
Net profit margin -490.50% -230.20% -128.87% -74.94% -41.46% -23.43% -6.22% 6.82% 17.06% 25.31% 32.09% 37.78% -12.32%
Return on equity n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
Return on assets -4.51% -3.82% -2.99% -2.02% -0.93% -0.11% 1.16% 2.46% 3.76% 5.01% 6.15% 7.15% 7.54%

Liquidity ratios:
Current ratio 2.87 2.47 2.15 1.90 1.71 1.57 1.49 1.47 1.50 1.59 1.74 1.93 1.93
Quick ratio (Acid-test) 2.87 2.47 2.15 1.90 1.71 1.57 1.49 1.47 1.50 1.59 1.74 1.93 1.93
Working capital ratio 23.17 10.38 5.70 3.45 2.24 1.52 1.14 0.97 0.95 1.03 1.18 1.39 0.21

Activity ratios:
Accounts receivable days 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Inventory days n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
Inventory turnover n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
Sales-to-assets 0.01 0.02 0.04 0.05 0.06 0.08 0.09 0.11 0.12 0.13 0.14 0.15 0.95

Leverage ratios:
Debt-to-equity -17.38 -9.35 -6.76 -5.55 -4.91 -4.54 -4.39 -4.44 -4.72 -5.31 -6.53 -9.41 -9.41
Debt ratio 1.06 1.12 1.17 1.22 1.26 1.28 1.29 1.29 1.27 1.23 1.18 1.12 1.12

Times-interest (TI) earned:


Operating income (17,426) (13,786) (10,146) (6,506) (2,866) (318) 3,322 6,962 10,602 14,242 17,882 21,522 23,486
Interest expense (÷) 5,333 5,275 5,215 5,155 5,094 5,032 4,970 4,906 4,842 4,777 4,711 4,644 59,956
TI earned ratio -3.27 -2.61 -1.95 -1.26 -0.56 -0.06 0.67 1.42 2.19 2.98 3.80 4.63 0.39

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Greenleaf Compassionate Care Center, Inc.
Ratio Analysis
For year ending July, 2012

Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Year 2
Profitability ratios:
Gross profit margin 98.97% 99.04% 99.10% 99.16% 99.20% 99.25% 99.29% 99.32% 99.35% 99.37% 99.40% 99.43% 99.26%
Operating profit margin 52.07% 55.43% 58.35% 60.91% 63.17% 66.73% 68.46% 70.01% 71.42% 72.13% 73.35% 74.79% 66.83%
Net profit margin 42.60% 46.76% 50.37% 53.54% 56.34% 60.38% 62.54% 64.49% 66.25% 67.18% 68.72% 70.50% 60.68%
Return on equity n/a -649.99% 124.95% 60.67% 41.27% 32.49% 26.49% 22.51% 19.67% 17.03% 15.49% 14.47% 296.94%
Return on assets 8.00% 8.68% 9.20% 9.57% 9.80% 10.14% 10.13% 10.05% 9.91% 9.47% 9.31% 9.28% 114.20%

Liquidity ratios:
Current ratio 2.18 2.47 2.80 3.18 3.60 4.07 4.57 5.12 5.69 6.28 6.90 7.56 7.56
Quick ratio (Acid-test) 2.18 2.47 2.80 3.18 3.60 4.07 4.57 5.12 5.69 6.28 6.90 7.56 7.56
Working capital ratio 1.64 1.93 2.24 2.58 2.93 3.32 3.72 4.13 4.54 5.05 5.47 5.83 0.63

Activity ratios:
Accounts receivable days 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Inventory days n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
Inventory turnover n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
Sales-to-assets 0.15 0.16 0.16 0.16 0.16 0.15 0.15 0.14 0.14 0.13 0.13 0.12 1.71

Leverage ratios:
Debt-to-equity -21.28 39.58 9.00 4.73 3.06 2.17 1.63 1.28 1.03 0.85 0.71 0.60 0.60
Debt ratio 1.05 0.98 0.90 0.83 0.75 0.68 0.62 0.56 0.51 0.46 0.42 0.38 0.38

Times-interest (TI) earned:


Operating income 25,162 28,802 32,442 36,082 39,722 44,388 48,028 51,668 55,308 57,268 60,908 65,668 545,448
Interest expense (÷) 4,576 4,508 4,438 4,368 4,296 4,224 4,150 4,076 4,001 3,924 3,847 3,769 50,176
TI earned ratio 5.50 6.39 7.31 8.26 9.25 10.51 11.57 12.68 13.82 14.59 15.83 17.43 10.87

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Greenleaf Compassionate Care Center, Inc.
Ratio Analysis
For year ending July, 2013

Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Year 3
Profitability ratios:
Gross profit margin 99.45% 99.47% 99.49% 99.51% 99.53% 99.54% 99.56% 99.57% 99.59% 99.60% 99.61% 99.62% 99.55%
Operating profit margin 75.80% 76.72% 77.58% 78.38% 79.12% 97.09% 97.18% 97.27% 97.35% 97.43% 97.50% 97.57% 90.06%
Net profit margin 71.76% 72.93% 74.01% 75.01% 75.95% 94.10% 94.36% 94.61% 94.85% 95.07% 95.29% 95.49% 87.16%
Return on equity 13.35% 12.40% 11.59% 10.89% 10.27% 11.78% 10.90% 10.15% 9.51% 8.96% 8.47% 8.04% 120.23%
Return on assets 9.06% 8.82% 8.59% 8.35% 8.12% 9.52% 9.05% 8.62% 8.24% 7.89% 7.57% 7.27% 99.68%

Liquidity ratios:
Current ratio 8.25 8.96 9.70 10.46 11.25 12.27 13.32 14.37 15.44 16.51 17.60 18.70 18.70
Quick ratio (Acid-test) 8.25 8.96 9.70 10.46 11.25 12.27 13.32 14.37 15.44 16.51 17.60 18.70 18.70
Working capital ratio 6.26 6.71 7.15 7.60 8.06 8.69 9.31 9.92 10.53 11.13 11.72 12.31 1.21

Activity ratios:
Accounts receivable days 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Inventory days n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
Inventory turnover n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
Sales-to-assets 0.12 0.12 0.11 0.11 0.10 0.10 0.09 0.09 0.08 0.08 0.08 0.07 1.11

Leverage ratios:
Debt-to-equity 0.52 0.45 0.39 0.34 0.30 0.26 0.23 0.20 0.17 0.15 0.14 0.12 0.12
Debt ratio 0.34 0.31 0.28 0.25 0.23 0.21 0.18 0.16 0.15 0.13 0.12 0.11 0.11

Times-interest (TI) earned:


Operating income 69,308 72,948 76,588 80,228 83,868 106,446 110,086 113,726 117,366 121,006 124,656 128,296 1,204,524
Interest expense (÷) 3,689 3,609 3,527 3,444 3,361 3,276 3,190 3,102 3,014 2,925 2,834 2,742 38,712
TI earned ratio 18.79 20.22 21.72 23.29 24.96 32.50 34.51 36.66 38.94 41.38 43.99 46.79 31.12

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