Original Indian Meadows, LLC

previously known as

Bottle Rock Herbal Medicine, LLC

13095 Bottle Rock Road

Cobb Mountain, CA 95426

(707) 337-6583

Attn: Charleen or Joleen

Non-Binding Property Lease Term Sheet

September 14th, 2023

OVERVIEW
Original Indian Meadows, LLC (OIM) property sits on a total of 61.8 acres of land, with cannabis cultivation available on three – one-acre parcels (distributed as 2 acres and 1 acre). The total cultivation area is 230,000 ft2 and is currently set up at 118,500 ft2, with approval for 130,000 ft2 of canopy space on the property.  The property boasts: a 5.5-gallon per minute solar well, grandfathered-seasonal access to pump water from Kelsey creek (6.4 acre-ft per year), swimming pool, enclosed hut (divided into two units for sleeping quarters), 1 barn, 14x bungalows (additional summer housing), restroom/shower rooms, freshwater pond (with 10 acre feet of water when full), and local approval for twelve 40’ portable containers (for additional drying space). The property is nearly turn-key with planter boxes, soil, water storage, irrigation, drip lines, steel framed hoop houses, shade cloths, etc.

Lease-to-own cultivation set-up (not the property):
Steel framed hoop houses, cultivation/planter boxes soil (filled mostly with 707 soil), shade cloths, greenhouse plastic, and blackout tarps. Erected and ready for use. Estimated value of $1.3 M.

Property lease comes with the additional use of the following (not included in lease-to-own):
Fourteen water storage tanks, Irrigation system, drip lines, staked into the ground planter boxes, 3 large humidifiers, and fans.

TERM & COST:
OIM is seeking a cannabis cultivation group to lease the property for a 7-year term. The lease price will be $35,000 per month plus $150k per year for the lease-to-own of the cultivation set-up as detailed above. The lease-to-own of the cultivation set-up is exclusively for the items detailed in section A. above, and NOT the property. The lease structure is intended to be beneficial to lessee’s by keeping initial costs low, while offering a large scale and nearly turnkey cultivation operation.

INITIAL COST:

●     3-months security deposit plus 1st month rent due upon signing.

●     $150,000 for lease-to-own of cultivation infrastructure (paid annually for seven (7) years). After the 7th year, lessee will own the items listed in section A.

●     $1.03 per square foot of planted cultivation space placed in escrow for cultivation tax (refundable or partially refundable if any changes to local tax code decreases the amounts owed).

SPECIFICATIONS

●     Lessee will be given ½ priced rent until State Licensing is secured.

●     The lease will be for a 7-year term, with a renewable option for an additional 10-years.

●     Lease will include an early termination clause to exit the lease after 2-years, for a one-time fee of $450k.

●     Lessee must have a personal guarantor.

●     Lessee must have a janitorial service to clean the buildings at a minimum of two times per month.

●     Lessee must hold general liability and property insurance with a minimum of $3M of coverage on the property. Lessor must be included as an additional insured on the policy.

●     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 must maintain local authorization and state cannabis licenses 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 will not disallow or not permit activities necessary to Lessee’s operation without substantial cause or reason (legal or otherwise).

●     Lessor will be maintaining a house, equipment barn, cafeteria and pump house on the property and will have full access to that area of the property (away from the cultivation area).

●     Lessee will not host any public events or parties at the property.

●     No fishing will be allowed in the pond.

AVAILABLE INFORMATION
–       Archaeological survey

–       Biological survey

–       Civil engineering stamp/approval on bridge allowing 75,000 lbs load

–       Survey Map

–       Local authorization

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

Property Owners

(707) 337-5745

Thank you for your time and consideration. We look forward to discussing this exciting opportunity with you further.