$29500

Turn Key! 130,000 Sq. Ft. of Cultivation Canopy in Lake County, CA For Lease Original Indian Meadows, LLC previously known as Bottle Rock Herbal Medicine, LLC NON- BINDING PURCHASE Term Sheet OVERVIEW Original Indian Meadows, LLC Previously known as Bottle Rock Herbal Medicine, LLC 13095 Bottle Rock Road Cobb Mountain, CA 95426 Non-Binding Property Lease Term Sheet November 15, 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 for 108,500 ft2, with approval for 130,000 ft2 of canopy space on the property. The property boasts: a 5.5-gallon per minute solar well, and 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. A. Lease-to-own cultivation set-up (not the property): Steel framed hoop houses, cultivation/planter soil (filled mostly with 707 soil), shade cloths, greenhouse plastic, and blackout tarps. Erected and ready for use. Fourteen water storage tanks, irrigation system, drip lines, staked into the ground planter boxes, 3 large humidifiers, and fans. Estimated value of $1.1M. TERM & COST: OIM is seeking a cannabis cultivation group to lease the property for a 5-year term. The lease price will be $25000 per month for the use of the property plus $100k per year for the use of the cultivation set-up as detailed above. 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. $100,000 for lease of cultivation infrastructure (paid annually) $0.53 per square foot of planted cultivation space placed in escrow for cultivation tax in 2024. The cultivation tax is to be paid annually. Please note cultivation tax may increase to $1.03 per square foot after the 2024 tax year SPECIFICATIONS Lessee will be given reduced rent until State Licensing is secured. Lease will be for a 5-year term, with a renewable option for an additional 2-5-years. Lease will include an optional early termination clause to exit the lease after 2-years (at Lessee's discretion), for a one-time fee of $450,000. Lessee must have a personal guarantor. Lessee must have a janitorial service clean the buildings at a minimum of two times per month. Lessee must hold general liability insurance for $2M of coverage on the property. Lessee must hold fire insurance with a minimum of $2M of coverage on the property. Lessor must be included as an additional insured on all insurance policies. 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 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 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 access to that area of the property (away from the cultivation area). Lessor will have the right to visit the leased space 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. AVAILABLE INFORMATION - Archaeological survey - Biological survey - Civil engineering stamp/approval on bridge allowing 75,000 lbs load - Survey Map - Local authorization - Premise diagram - Property diagram This is a legally non-binding term sheet. Nothing in this term sheet establishes any type of relationship or guarantee. Original Indian Meadows, LLC __________________ ___________________ ___________________ Thank you for your time and consideration. We look forward to discussing this exciting opportunity with you further.