STATE OF COLORADODEPARTMENT OF REVENUEState Capitol Annex1375 Sherman Street, Room 409Denver. Colorado 80261Phone (303) 866-3091Fax (303) 866-2400 John HickenlooperApril 3, 2014 GovernorBarbara J. BrohlExecutive DirectorMMP Enterprises, Inc. David Furtadod/b/a Grateful Meds 3773 Cherry Creek North Drive, #575110 Snyder Street Denver, Colorado 80209Nederland, Colorado 80466Robert GimenezJMMP Enterprises, Inc. 11711 Chambers Drived/b/a Grate?sl Meds Commerce City, Colorado 800222640 East 43'? AvenueDenver, Colorado 80216 Gerardo Uribe816 Acoma StreetMMP Enterprises, Inc. Denver, Colorado 80204d/b/a Grateful Meds3773 Cherry Creek North Drive, #575Denver, Colorado 80209NOTICE OF DENIALRe: Business Application Numbers: 402-00496 and 403-00733Associated Key Application Numbers: M07421 and M07420Dear Mr. Furtado, Mr. Gimenez, Mr. Uribe, and JMMP Enterprises, Inc.:The Department of Revenue?s Executive Director (?State Licensing Authority?) hasreviewed your applications to operate a medical marijuana center (application number 402-00496), an optional premises cultivation facility (application number 403-00733), and Mr.Furtado?s and Mr. Gimenez?s applications for associated key licenses (application numbersand M07420). The State Licensing Authority has DENIED your license applicationsfor good cause as de?ned in subsection C.R.S., and/or section C.R.S. The grounds for denial include, but are not limited to', the following:If a hearing is requested in this matter, the Notice of Grounds for Denial may include some or all of the allegationscontained herein, and may contain additional allegations if warranted after further review.On October 16, 2013, at the time of inspection of your medical marijuana center locatedat 110 Snyder Street, Nederland, Colorado, you failed to apply for and receive a permit from theDivision for a change of location of your business prior to changing the location of your businessin violation of Rule 206, 1 CCR 212-1 (2013); you failed to notify the Marijuana EnforcementDivision (?Division?) at least forty-eight hours in advance of abandoning your premises orotherwise ceasing operations and without accounting for and forfeiting to the Division fordestruction all marijuana or products containing marijuana in violation of subsection 12-43.3-90l(4)(o), you failed to ?le necessary applications to alter or modify your premises withthe Division pursuant to Rule 1 CCR 212-1 (2013); and you failed to obtain approvalfrom the Division prior to subletting any portions of your premises in violation of Rule 1 CCR 212-1 (2013).On October 26, 2013, at the time of inspection of your optional premises cultivationfacility located at 2640 East 43"? Ave., Denver, Colorado, you failed to describe all limitedaccess areas by the ?ling of a diagram of your premises in violation of Rule 1 CCR212-1 (2013); you failed to maintain camera coverage of areas where medical marijuana isgrown, tested, cured, manufactured, or stored in violation of Rule 1 CCR 212-1(2013); you failed to maintain a log of all activity for the surveillance room and a current list ofemployees and service personnel authorized to access the surveillance room in violation of RuleCCR 212-1 (2013); you employed or contracted to perfonn work for yourbusiness individuals without a valid license issued by the Division in violation of Rules and 1 CCR 212-1 (2013); and you employed another person at a medicalmarijuana facility who had not passed a criminal history check in violation of section 12-43.3-307(l)(i), C.R.S.On December 18, 2013, at the time of inspection of your medical marijuana centerlocated at 110 Snyder Street, Nederland, Colorado, you failed to complete, maintain, or makeavailable records necessary to demonstrate business transactions for inspection by the Division inviolation of section 12-43.3-701, C.R.S. and Rule 90l(A), 1 CCR 212-1 (2013); your centerindicated it had patients authorized for more than six medical marijuana plants and two ounces ofmedical marijuana, however, you failed to provide documentation from the patients? physiciansevidencing the patients needed more than six plants and two ounces of product in violation ofsubsection you failed to maintain surveillance recordings for aminimum of forty (40) days in violation of Rule CCR 212-1 (2013); and youfailed to have a security alarm system installed by an alarm installation company on all perimeterentry points and perimeter windows in violation of Rule 1 CCR 212-1 (2013).In addition, you failed to have a MITS account activated and ?mctional for both yourmedical marijuana center and optional premises cultivation facility on or before December 31,2013 in violation of Rules and 406, 1 CCR 212-1 (2013); you failed to report eachtransfer or change of ?nancial interest in the business to the Division in violation of Rule 205(A)(l), 1 CCR 212-1 (2013); you failed to ?le with the Division applications and fees fortransfers of ownerships in violation of rule 1 CCR 212-1 (2013); and you failed toapply for and receive a permit from the Division for a change of location of your business priorto changing the location of your business in violation of Rule 206, 1 CCR 212-1 (2013).You have operated the licensed premises2 in a manner that adversely affects the publichealth or welfare or the safety of the immediate neighborhood in which your establishments arelocated in violation of subsection C.R.S. Moreover, you have cultivated,manufactured, distributed, and sold medical marijuana in a manner not in compliance with article43.3 of title 12 in violation of subsection C.R.S.Based on the foregoing grounds for denial of your medical marijuana center application,your optional premises cultivation facility license, application number 403-00733, related to yourmedical marijuana center application cannot be issued pursuant to subsections and C.R.S, and your associated key license applications carmot be issued withregard to business application numbers 402-00496 and 403-00733 pursuant to Rules 103 and204, 1 CCR 212-1 (2013), and subsection C.R.S.Pursuant to subsection 24-4-l 04(9), C.R.S., you have the right to request a hearing regardingthe denial of your applications. In order to exercise this right, you must deliver a request for ahearing in writing to the Marijuana Enforcement Division, 455 Sherman Street, Suite 390,Denver, CO 80203 within sixg (60) days from the certi?ed date of service ofthis letter. A requestfor a hearing received after that date, as determined by the date stamp by the Marijuana EnforcementDivision, will not be considered. Additionally, verbal or email requests will not be considered.If you request a hearing, you have the right to have an attorney represent you at the hearing atyour expense, to present any relevant and admissible evidence on your behalf, rebut any evidencepresented against you, and cross-examine any witnesses testifying against you. In a hearing, you willbear the burden of proof to demonstrate by a preponderance of the evidence that you are quali?ed tohold the licenses for which you have been denied.If you choose, you may ask to withdraw your applications. If you wish to request that yourapplications be withdrawn at this time, please inform the Marijuana Enforcement Division in writingas soon as possible but no later than thirty [30] days from the date of this letter. Asking to withdrawyour application does not extend the time within which you must request a hearing; as stated above,any request for a hearing must be in writing and received by the Marijuana Enforcement Divisionwithin sixg (60) days ofthe certi?ed date ofservice ofthis letter.The Division has placed all marijuana plants, marijuana, ?nished marijuana products,marijuana-infused products or other marijuana inventory within your possession and controlrelated to business application numbers 402-00496 and 403-00733 on administrative holdpursuant to Rule 1202, 1 CCR 212-1 (2013) and subsection C.R.S. TheNotice of Administrative Hold dated April I, 2014 is enclosed.Please note that neither the State Licensing Authority nor the Marijuana EnforcementDivision is able to provide you with legal advice. If you have questions as to how to proceed legally,please consult with an attorney.2 The term licensed premises is used as defined in Rule I03, I CCR 212-1 (2013). See also C.R.S., regarding an operating applicant's requirement to follow all rules promulgated pursuant to the MedicalMarijuana Code, sections 12-43.3-10! et seq, C.R.S.Should you have any other type of question regarding this letter or the State LicensingAuthority's decision, you may contact the attorneys for the Marijuana Enforcement Division,Assistant Attorneys General John Viverito at iohn.viverito@state.co.us or Kelly Rosenberg atkell .rosenber astate.co.us.Sincerely,Barbara J. BrohlExecutive DirectorDepartment of RevenueState Licensing AuthorityCERTIFICATE OF SERVICEI hereby certify that a true and accurate copy of the foregoing NOTICE OF DENIALwas duly placed in the United States Mail, ?rst class postage pre-paid or via electronic mail onApril 8 2014, addressed as follows:JMMP Enterprises, Inc. JMMP Enterprises, Inc.d/b/a Grateful Meds d/b/a Grate?.1l Meds1 10 Snyder Street 2640 East 43"? AvenueNederland, Colorado 80466 Denver, Colorado 80216David Furtado Robert Gimenez3773 Cherry Creek North Drive, #575 1 171 1 Chambers DriveDenver, Colorado 80209 Commerce City, Colorado 80022Gerardo Uribe JMMP Enterprises, Inc.816 Acoma Street d/b/a Grateful MedsDenver, Colorado 80204 3773 Cherry Creek North Drive, #575Denver, Colorado 80209By: Samantha Quigley 5?Compliance InvestigatorBEFORE THE EXECUTIVE DIRECTOR, DEPARTMENT OF REVENUESTATE LICENSING AUTHORITYSTATE OF COLORADONOTICE OF ADMINISTRATIVE HOLD PURSUANT TO RULE l202(B)IN THE MATTER OF:JMMP Enterprises, Inc.d/b/a Grateful MedsI10 Snyder StreetNederland, Colorado 80466Medical Marijuana Center License Application No. 402-00496JMMP Enterprises, Inc.d/b/a Grateful Meds2540 East 43"? AvenueDenver, Colorado 80216Optional Premises Cultivation Facility License Application No. 403-00733Applicant.PLEASE TAKE NOTICE THAT following the inspection of the business known asJMMP Enterprises, Inc., d/b/a Grateful Meds ("Applicant"), with a medical marijuana center(application number 402-00496) located at 110 Snyder Street, Nederland, Colorado and optionalpremises cultivation facility (application number 403-00733) located at 2640 East 43"? Avenue,Denver, Colorado, the Department of Revenue, State Licensing Authority, MarijuanaEnforcement Division (?Division?) has developed reasonable grounds to believe that Applicantpossesses certain marijuana or marijuana-infused products that constitute evidence of acts inviolation of the Colorado Medical Marijuana Code, article 43.3 of title 12, and rules promulgatedpursuant to it, or otherwise constitute a threat to the public safety.THEREFORE, to prevent the destruction of evidence, diversion, or other threats to thepublic safety, the Division hereby issues this Notice of Administrative Hold (?AdministrativeI-Iold") pursuant to Rule 1 CCR 212-1 (2013). The Administrative Hold is effectiveimmediately and shall remain in effect until administratively lifted by the Division or modi?edby Final Agency Order.INVENTORY SUBJECT TO THE ADMINISTRATIVE HOLDThe attached Exhibit A sets forth the marijuana and marijuana-in?ised products subjectto this Administrative Hold (the ?Subject Inventory?).TERMS AND CONDITIONS OF ADMINISTRATIVE HOLD:Applicant is hereby ORDERED and required to adhere to the following terms andconditions of this Administrative Hold.1.1.following:I.This Administrative I-lold is e?cctive immediately upon receipt of this AdministrativeHold by Applicant.Applicant shall retain the Subject Inventory during the pendency of thisAdministrative Hold.Applicant must comply with the inventory tracking requirements pursuant to theDivision's rules and regulations during the period of this Administrative I-lold.Applicant shall completely and physically segregate the Subject Inventory in alimited access area of the premises where it shall be safeguarded by Applicant.This Administrative Hold shall not prevent Applicant from continued cultivation orharvesting of the Subject Inventory.If applicable, the Subject Inventory shall be put into separate Harvest Batches.Applicant during the pendency of this Administrative Hold is prohibited from selling,giving away, transferring, transporting, or destroying the Subject Inventory.Nothing herein shall prevent Applicant ?'orn entering into a mutual agreement withthe Division to voluntarily surrender the Subject Inventory, upon a full and knowingwaiver of rights. Such voluntary surrender may require destruction of the SubjectInventory in the presence of a Division investigator or surrender of possession of theSubject Inventory to a Division investigator for ?iture destruction.CERTIFICATION BY THE DIVISIONf/em 0An Investigation was conducted of the marijuana business(es) identi?ed in theattached Exhibit A.Investigator for the Division certify theA description of the Subject Inventory is set forth in Exhibit A.Reasonable grounds exist to believe that the Subject Inventory constitutes evidence ofacts in violation of the Colorado Medical Marijuana Code and rules promulgatedpursuant to it, or otherwise constitute a threat to the public safety.4. A copy of the Administrative Hold was issued with a Notice of Denial sent to themarijuana business(es) identi?ed in Exhibit A.APPROV and ORDERED this 5?'dayof 2014.Investigator for Division: DEPARTMENT OF REVENUE investigation NumberSTATE LICENSING AUTHORITYMARIJUANA ENFORCEMENT DIVISION Page ofSTATE OF COLORADOINVENTORY LISTPhysical Address JMMP Enterprises, Inc. 110 Snyder Street Nederland, CO 80466d/b/a Grateful Meds2540 East 43'? Avenue Denver, co 80216Applicant/Licensee Name Mailing CitytSIaIc!ZlPJMMP Enterprises, Inc. 3773 Cheny Creek North Denver, CO 80209Drive, #575MED_lnvestigatorlNarne Date of on-site Inventory Inspection Application/License NumbersI 402-00496 and 403-00733I 1' . q'S* SECTION 1 MITS INVENTORY El MITS inventory printout attached. Date printedEl MITS inventory con?rmed via on-site inspection.2 ON-SITE INVENTORY Inventory Description Quantity Wei ght/Serial OtherNumberAdditional Inventory may foilnw the signature blackEXHIBIT A i Initials - Marijuana Enforcement DivisionAdministrative HoldDEPARTMENT OF REVENUE Investigation NumberSTATE LICENSING AUTHORITY MARIJUANA ENFORCEMENT DIVISION Page ofSTATE or coLoRAooTHE INVENTORY LISTED IN SECTIONS 1 ANDIOR 2 IS SUBJECT TO ANADMINISTRATIVE HOLD.ALL MARIJUANA AND INVENTORY RELATED ToBUSINESS APPLICATION NUMBERS 402-00496 AND 403-00733 IS SUBJECTTO AN ADMINISTRATIVE HOLD.The Applicant or Licensee must comply with the inventory tracking requirements pursuant toState Licensing Authority rules during the period of administrative hold.For the Division: 24/904,0,I IDate: 7EX I A Initials - Marijuana Enforcement DivisionAdministrative Hold