Original Indian Meadows, LLC previously known as
Bottle Rock Herbal Medicine, LLC
13095 Bottle Rock Road
Cobb Mountain, CA 95426
Attn: Charleen or Joleen
Non-Binding Property Lease Term Sheet
June 7, 2022
Bottle Rock Herbal Medicine’s (BRHM) property sits on a total of 61.8 acres of private land, with cannabis cultivation available on three – one acre parcels. The property boasts: a 5-gallon per minute well, cafeteria (full commercial kitchen with separate interior seating area), swimming pool, an enclosed hut (divided into two units for additional sleeping quarters), 2x barns, 14x bungalows, restroom/shower rooms, pump house; with two 5500 gallon water storage tanks, and a freshwater pond; with 10 acre feet of water when full.
Independently evaluated, and inclusive of the added value the amenities bring to the property, it’s estimated that leasing the property for cannabis cultivation would cost between $180-$200k per cultivation acre (3x), or $45,000-$50,000 per month.
BRHM is seeking a cannabis cultivation group to lease the farm property for $1.56/usable space per sq. ft per year / $39,600. per month; plus 3.69% of gross profit (revenue minus direct COGS). This structure is intended to be beneficial to both lessee and lessor by minimizing the production costs of lessee, and acting as a non-guaranteed upside to lessor for discounting the lease price.
● Lease will be for a 5-year term, with a renewable option for an additional 5-years. ● Lease will include an early termination clause to exit the lease after 2-years, for a one-time fee of $450k (solely at lessee’s discretion).
● Lessee must hold general liability insurance with a minimum of $4M of coverage on the property. Lessor must be included as an additional insured on the policy.
● 3-months security deposit plus 1st month rent due upon signing.
● Lease terms will be triple net. All upgrades, maintenance, and upkeep of the property will be the responsibility of Lessee.
● Lessee can only sublease cultivation parcels to companies they control and/or operate, and will be held responsible for the property.
● Lessee will be permitted to secure three cannabis cultivation licenses (either outdoor or greenhouse) on the property. Any additional licenses must be discussed with and approved by Lessor on a case-by-case basis.
● Lessee must maintain local authorization and state cannabis licenses in order to legally cultivate cannabis on the property.
● Lessee will not at any time cultivate cannabis without a license.
● Any updates and/or modifications to structures on the property or additions to the property must be pre-approved by Lessor prior to development. Lessor desires Lessee to be successful in their operation, and will not disallow or not permit activities necessary to Lessee’s operation without substantial cause or reason (legal or otherwise).
● Lessor will have the right to visit the property given 24 hour notice prior to visit. ● Lessee will not host any public events or parties at the property.
● No fishing will be allowed in the pond.
– Archaeological survey
– Biological survey
– Civil engineering stamp/approval on bridge allowing 75,000 lbs load
– Survey Maps, site maps
– Major Use permit
– State licensed for 2 years in a row for 130,000 sq. feet of sun-grown /hoop-house canopy
This is a legally non-binding term sheet. Nothing in this term sheet establishes any type of relationship or guarantee.
Original Indian Meadows, LLC
__________________ ___________________ ___________________
Joleen Wignall, Charleen Ewing & Lawrence Sekara