DECLARATION OF DEREK S.K. KAWAKAMI
I, DEREK S.K. KAWAKAMI, declare as follows:
1.

I am competent to testify and have personal knowledge of the matters set forth

2.

I am the son of Charles Kenji Kawakami.

3.

I am a 4th generation Kauai resident.

4.

I served two terms on the Kauai County Council before being appointed by

herein.

Governor Neil Abercrombie in 2011 to replace Hermina Morita as State Representative for the
14th legislative district of Kauai. I ran unopposed in my first bid for re-election in 2012, and
won another term in 2014 where I garnered 70 percent of the vote. In 2016, I left the State
legislature to seek a seat on the Kauai County Council, and in November of 2016, won my
election - garnering the most votes of any Council candidate in Kauai.
5.

I have served as an officer, director, and employee of MFM, Inc. - the owner

of the Big Save Grocery Store chain, and Menehune Food Marts. Prior to the sale of the Big
Save Grocery Stores, I worked directly under Charles K. Kawakami in all aspects of
operations of the grocery stores. Post-sale, I assumed primary responsibility for all aspects of
operations for the gas station and convenience store locations operating under the Menehune
Food Mark brand.
6.

I am one of two members of HSK MM LLC. I own 14.5% of HK Medicinal

LLC by virtue of (i) my ownership interest in HSK MM LLC, and (ii) my ownership interest

1
1498399_2

 in H.S. Kawakami Stores, Ltd, which is the sole shareholder of MFM, Inc., which is the sole
voting member of HSK MM LLC.
7.

I have been personally and extensively involved in the preparation of HK

Medicinal LLC's Medical Marijuana Dispensary License Application and the entire application
process that has followed the filing of HK Medicinal LLC's application with the State of
Hawaii Department of Health ("DOH").
8.

On January 29, 2016, Charles K. Kawakami was an individual who was at least

21 years old, had been a legal resident of the State of Hawaii for at least five uninterrupted
years prior to January 29, 2016, and had no felony convictions.
9.

On January 29, 2016, HK Medicinal LLC's sole manager was Charles K.

Kawakami, and he remained as manager until his death. I am the custodian of records for HK
Medicinal LLC.
10.

After HK Medicinal LLC submitted its Application to the DOH on January 29,

2016, it did not receive any communication from the DOH regarding its Application until April
7, 2016.
11.

On December 3, 2016, Charles K. Kawakami passed away. His passing was

unexpected and sudden.
12.

Since Charles K. Kawakami has passed away, HSK MM LLC has made the

decision to have me fill Charles K. Kawakami's role as its sole manager, and to continue with
the present appeal of the DOH's disqualification of HK Medicinal LLC's Application. HSK
MM LLC is the majority voting member of HK Medicinal LLC. MFM, Inc. is the sole voting
2
1498399_2

 member ofHSK MM LLC. MFM, Inc. has made the decision to appoint me as the sole manager
of HSK MM LLC, and HSK MM LLC will be appointing me as sole manager of HK Medicinal
LLC. To the extent authorized by the DOH, I will be assuming Charles K. Kawakami's duties
and obligations as to HK Medicinal LLC and for the entire application and licensing process for
HK Medicinal LLC.
13.

Attached hereto to this filing as Exhibit 2 a true and correct copy of a printout

of HK Medicinal LLC's Medical Marijuana Dispensary License Application that was submitted
online to the DOH(" Application").

14.

Attached hereto as Exhibit 3 is a true and correct copy of a DOH news release

dated January 11, 2016 received by HK Medicinal LLC.

15.

Attached hereto to this filing as Exhibit 4 is a true and correct copy of an email

from DOH to HK Medicinal LLC dated January 2016, received by HK Medicinal LLC.

16.

Attached hereto to this filing as Exhibit 5 is a true and correct copy of the

template EXCEL spreadsheet provided by DOH and filled out by HK Medicinal LLC as part
of the Application, with certain portions redacted to protect personal information
("Owner/Principal/Member

Report"). Applicants, including HK Medicinal LLC, did not have

the ability to change, alter, or amend any of the title headings for the columns set forth in the
Owner/Principal/Member

Report, and pursuant to the instructions provided in Question No. 34

of the Application, HK Medicinal was required to input requested information into the template
spreadsheet.

3
1498399_2

 17.

Attached hereto to this filing as Exhibit 6 is a true and correct copy of the

organizational chart for HK Medicinal LLC, provided in response to Question No. 35 of the
Application.
18.

Attached hereto to this filing as Exhibit 7 is a true and correct copy of an email

notification from DOH dated April 7, 2016 to all applicants, received by HK Medicinal LLC
(" April 7th Notification").
19.

Attached hereto to this filing as Exhibit 8 is a true and correct copy of the State

of Hawaii, Department of Health Office of Health Care Assurance Medicinal Marijuana
Dispensary Licensing Program Criminal History Record Check Consent and Notification form
("Consent and Notification Forms"), which was enclosed with the DOH"s April Tn
Notification, received by HK Medicinal LLC.
20.

Attached hereto to this filing as Exhibit 9 is a true and correct copy of a letter

dated April 12, 2016 from HK Medicinal LLC's legal counsel to DOH with enclosed executed
Consent and Notification Fonns (which have been redacted to protect personal information), that
was received by HK Medicinal LLC.
21.

Attached hereto to this filing as Exhibit 10 is a true and correct copy of an email

sent by DOH and received by HK Medicinal LLC.
22.

Attached hereto to this filing as Exhibit 11 is a true and correct copy of an email

from DOH to Charles K. Kawakami dated April 21, 2016, received by HK Medicinal LLC.
23.

Attached hereto to this filing as Exhibit 12 is a true and correct copy of an email

from DOH to Charles K. Kawakami dated April 22, 2016, received by HK Medicinal LLC.
4
1498399_2

 24.

Attached hereto to this filing as Exhibit 13 is a true and correct copy of an email

from HK Medicinal LLC's legal counsel to DOH dated April 23, 2016, received by HK
Medicinal LLC.
25.

Attached hereto to this filing as Exhibit 14 is a true and correct copy of a letter

from HK Medicinal LLC's legal counsel to DOH enclosing executed Consent and Notification
Fonns (which have been redacted to protect personal information), that was received by HK
Medicinal LLC.
26.

Attached hereto to this filing as Exhibit 15 is a true and correct copy of an email

from DOH to applicants, received by HK Medicinal LLC.
27.

Attached hereto to this filing as Exhibit 16 is a true and correct copy of an email

from HK Medicinal LLC's legal counsel to DOH dated April 27, 2016 with enclosure.
28.

Attached hereto to this filing as Exhibit 17 is a true and correct copy of an email

from DOH to HK Medicinal LLC's legal counsel dated April 28, 2016, received by HK
Medicinal LLC.
29.

Attached hereto to this filing as Exhibit 18 is a true and correct copy of a DOH

news release dated April 29, 2016, received by HK Medicinal LLC.
30.

Attached hereto to this filing as Exhibit 19 is a true and correct copy of a DOH

news release dated May 19, 2016, received by HK Medicinal LLC.
31.

Attached hereto to this filing as Exhibit 20 is a true and correct copy of a letter

from DOH to HK Medicinal LLC dated June 16, 2016, received by HK Medicinal LLC.

5
1498399_2

 32.

Attached hereto to this filing as Exhibit 21 is a true and correct copy of a DOH

news release dated June 24, 2016, received by HK Medicinal LLC.
33.

Attached hereto to this filing as Exhibit 22 is a true and conect copy of a letter

from HK Medicinal LLC's legal counsel to DOH, without attachments, dated July 15, 2016,
commencing this appeal ("Appeal"), and received by HK Medicinal LLC.
34.

Attached hereto to this filing as Exhibit 23 is a true and correct copy of an email

from DOH's legal counsel to HK Medicinal LLC's legal counsel dated December 16, 2016,
received by HK Medicinal LLC.
35.

Attached hereto to this filing as Exhibit 24 is a true and conect copy of an email

from HK Medicinal LLC's legal counsel to DOH's legal counsel dated December 16, 2016,
received by HK Medicinal LLC.

II

II

II

II

6
1498399_2

 I DECLARE, UNDER PENALTY OF PERJURY, that the foregoing is true and
correct.
DATED:

----=L1=·h=u_e

_______

,

Hawaii,

January

6,.

2017.

DEREK S.K. KAWAKAMI

7
1498399_2