STAT EOF OHIO BOARD OF PHARMACY IN THE MATTER OF: CASE NO. M-2019- 3004 Harvest of Ohio LLC Account NoJApplication Nos. 350-890, 350-923, 350-934 clo Ariane Kirkpatrick, President 627 South 48th Street Tampe, Arizona 85281 SETTLEMENT AGREEMENT WITH THE STATE OF 0 THIS SE1TLEMENT AGREEMENT {the "Agreement") is made LLC (?Harvest of Ohio"), and the State of Ohio Board of Pharmac collectively the "Parties?). WITNESSETH: WHEREAS, Harvest of Ohio submitted Application ID 890 to West Union Street, Athens, OH 45701; Application ID 923 to obtain High Street, Columbus, OH 43202; and Application ID 934 to obt Tonawanda Trail, Beavercreek, OH 45430 (?the Applications"). WHEREAS, The Applications listed Ariane Kirkpatrick as a group," as defined in R.C. 37981002), with 51% ownership; ownership, and Thomas Chino as a "Non-Minority,? with 5% owners is a member of an "economically disadvantaged group? and a FESldi WHEREAS, on or about June 4, 2018, the Board awarded i following addresses: 4370 Tonawa nda Trail, Beavercreek, OH 454 Street, Athens, OH 45701 ("Athens iocation?), and 2950 North location?) as an "economically disadvantage group" as required by 7? South High Street, 17th Fioor, Colur HIO BOARD OF PHARMACY and executed by and among, Harvest of Ohio 5; ("Board") {individually each a "Party,? and obtain a provisional disperisar',r license at 711 a provisional dispensarv license at 2950 North ain a provisional dispensary license at 4370 member of an "economicallv disadvantaged ~ven White as a "Non-Minority," with 44% hip of Harvest of Ohio LLC. Ariane Kirkpatrick int of Ohio as required bv 8.0 32961002}. iarvest provisional dispensary licenses at the 30 {"Beavercreek location?), 711 West Union gh Street, Columbus, OH 43202 (?Columbus MC. nbus, Ohio 43215 T: (514} 466.4143 i F: {614) 752.4835 contact@pharmacy .ohio.gov WHEREAS, on November 20, 2017, Ariane Kirkpatrick a Agreement of Harvest of Ohio (?Operating Agreement") setting operation and management of Harvest of Ohio LLC. WHEREAS, on June 7, 2019, the Board issued to Harvest the Beavercreek location, Athens location, and Columbus location, WHEREAS, on or about July 10, 2019, Harvest of Ohio ?ll Common Pleas, Case Number 19-01-5550 against the Board ("Fran restraining order and preliminary injunction prohibiting the Board through {1d} of the ?Allegations" section and the entire "Potential Notices. WHEREAS, at all times referenced herein, Harvest of Ohio the Beavercreek location, Athens location, and Columbus location. WHEREAS, the Board has determined that the Operating A Board, and the Board?s observations of the day-to-dav operatio nd Steve White entered into an Operating forth the terms and conditions governing the iOhio Notices of Opportunity for Hearing for Case Number M-ZOIB-ODOA (the "Notices?l. ad an action in the Franklin County Court of klin County case?), and obtained a temperari}r from public disSEmination of paragraphs iolations of Law? section contained within the sad not received a certificate of operation for greement, other information received by the as of Harvest of Ohio after being awarded provisional dispensary licenses for the Beavercreek location, Athen' location, and Columbus location, violate R.C. and Ohio Adm.Code as interpreted the Board. WHEREAS, Harvest othio has submitted to the Board the and management of Harvest of Ohio with all three agreements to b: Agreement: Amended and Restated Operating Agreement of Harve License Agreement. WHEREAS, Harvest of Ohio neither admits nor denies the governing medical marijuana dispensaries, including R.C. 3796.10lc NOW, THEREFORE, in consideration of the mutual prom allowing agreements governing the operation acome effective as of the effective date of this st of Ohio Secured Promissory Note; and it has violated any statutes or regulations l. ises and undertakings herein set forth, and intending to be legailv bound hereby, the Parties hereto agree as follows: Harvest of Ohio LLC Case No. Page 2 of "i 1. Preambles. The foregoing preambles are incorporated her 2. Harvest othio LLC Speci?c Actions. The Board herebv issues a reprimand to Harvest of sin by reference. Ohio. Harvest of Ohio voluntarilv agrees to a make a mor etarv donation in the amount of $500,000.00 to the Ohio Automated Rx Reporting System established pursuant RC. 4729.?5 and speci?cally for the drug database fund of R.C. 43"25 {the "Drug Database Donation"). The ?rst payment of the Drug Database Donation shall be made six months after all Certificates of Operation are obtained for the Athens location, Beavercreek location and Columbus location. The Drug Database Donation shall be paid-in-full eightee (18) months after the first payment is made. Ariana Kirkpatrick shall remain at all times the Harvest of Ohio as described in the Amended and Ohio LLC and Harvest othio will not be eligible to a all of the following conditions: i. Harvest of Ohio?s Beavercreek location, A each held a certi?cate of operation for a pa ii. The Drug Database Donation has been paic Upon execution of this Agreement, Harvest of Ohio i. Dismiss with prejudice the Franklin County ii. Withdraw all requests for hearing in the Mo of Ohio Board of Pharmacy, Case Number Harvest of Ohio will submit any necessary Upon execution of this Agreement, the Board shall: Case No. hit-20190004 ajoritv Member? and ?Managing Member" of Restored Operating Agreement of Harvest of for a change of ownership until it satisfies thens location, and Columbus location, have riod of eighteen {18) months; and -in-fu l. shall: Case; and tter of Licensee: Harvest of Ohio LLC, the State A-2019-0004. ariances for Board review. Page 3 of 7 3. Specific Releases. a. Harvest of Ohio. In consideration for the covenants pursuant to this Agreement, Harvest of Ohio agre against the Board, in anvjurisdictions, in any forum, for any form of relief against the Board relating described herein. This release does not affect Harve Agreement. b. The Board. Harvest of Ohio LLC After Board approval of all variances desc schedule final inspections within fourteen 3796:5-2-06 for that location; and Award a certi?cate of operation to Harvest location, and Columbus location within location passes a final inspection and, excep licensure requirements such as payment of After the terms of this Agreement are 1 Agreement, nor the underlying facts thereo White, and/or Ariane Kirkpatrick regarding transfer its dispensary licenses to a third andfor Steve White to transfer all or some not limited to transferring a controlling intt andfor to a third-party; any future ap medical marijuana dispensary licenses i Case NO. ltd-20190004 ribed in Section for single location, [14] days in accordance with Ohio Adm.Code of Ohio for the Beavercreek location, Athens wo business days after each respective ting all matters settled herein, meets all other the appropriate fees. releases, and agreements made bvthe Board es not to institute or reinstitute any actions tribunal, court, or administrative proceeding, to, arising from, or concerning the matters est of Ohio?s rights to Enforce the terms ofthis ul?lled, the Board agrees that neither this f, will adversely impact Harvest of Ohio, Steve a) any eventual request by Harvest othio to party; any request by Ariane Kirkpatrick a of their membership interest, including but rest, in Harvest of Ohio, between themselves plications by Harvest of Ohio for additional 1 the State of Ohio; and, any future Page 4 of 7' 4. General Release. In consideration of the covenants and a Harvest of Ohio LLC applications by any entity for new or ad: Ariane Kirkpatrick or Steve White are owne The Board agrees it will not amend the Not to receive a provisional dispensary license 3796.10lc) having been held unconstitutiol State of Ohio. themselves and each of their respective administrators, divisions, affiliates, predecessors, successors, present shareholders, owners, members, attorneys and assigns, rernise, quit-claim and fully and forever discharge the otf executors, administrators, trustees, accountants, parents, 5 successors, present or former of?cers, directors, employee and assigns, from any and all claims, demands, damages, at or causes of action of every kind and description, whether which it now has, or has had, or hereafter can, shall, or ma matter of this Agreement. The Parties agree not to pursu claim related to matters described herein. This release doc terms of this Agreement. Public Record. All Parties to this Agreement understand th ?149.43, and its terms will therefore become part of the mi Costs a_nd Expenses of Administrative and Court Proceed costs and expenses it incurred in connection with any heari Case No. M-2019-DCID4 litional medical marijuana licenses in which rs, officers or employees. ces to assert that Harvest of Ohio is ineligible - andlor certificate of operation due to RC. ml by a court of competentjurisdiction in the greements contained herein, the Parties, for trustees, accountants, parents, subsidiaries, or former of?cers, directors, employees, hereby fully and forever release, withdraw, er party, and each of their respective heirs, ubsidiaries, divisions, affiliates, predecessors, shareholders, owners, members, attorneys, :counts, debts, liens, suits, actions, and rights "town or unknown, suspected or unsuspected, have arising out of or related to the subject litigation in this matter or for any released 5 not affect the Parties? rights to enforce the at this document is a public record under R.C. nutes ofa meeting ofthe Pharmacy Board. ngs. Each party shall be responsible for the or other litigation. Page 5 of 7. Entire Agreement. This Agreement supersedes any and all agreements by, between and among the Parties, and represents their entire agreement pertaining to the subject matter hereof. There is no agreement or understanding relating to the subject matter hereof, whether express, implied, written or oral, not expressly set forth herein. 3. Binding Effect. This Agreement is binding upon and shall inure to the bene?t of the Parties hereto and their members, of?cers, af?liates, agents, employees, successors and assigns. 9. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Ohio. 10. Interpretation. This Agreement shall be interpreted as though mutually drafted by the Parties hereto and their reSpective counsel. 11. Headings. The headings preceding the paragraphs herein are intended to be for convenience only and shall have no operative force or effect. 12. Authori'g. The Parties hereto represent and warrant to each other that each Party possesses the full requisite authority to enter into this Agreement and that tt a person signing this Agreement on behalf of each Party is fully and duly authorized to do so. 13. Execution in Counterparts; Facsimile Signatures. The Pattie acknowledge and agree that this Agreement may be executed (1) in one or more counterparts, which together shall constitute a single, integrated agreement, and by facsimile signatures which shall have the same force and effect as original signatures. PAGE Fo Harvest of Ohio LLC Case No. ltd-20190004 Page 6 of? IN WHEREOF, Harvest of Ohio and the State of Ohio Boarzl of Pharmacy intending to be legally bound hereby, have executed this Settlement Agreement, which becomes effective upon the date of the Board President?s signature below: 06 (gem By: Shawn'C. Wiltr?phq President By: Ariane Kirkpatrick, Majority Member State of Ohio Board of Pharmacy Ha west of Ohio LLC 4kg?! 3/?/361d Ariane B. Kirkpatrick 213(20 h. . Print Name Date Print Name Harvest of Ohio LLC Case No. meme-0004 Date Page of