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Cannabis Waste Holding and Destruction <br /> In the event a cannabis goods batch produced by JKL is not fit for distribution , it shall be <br /> deemed cannabis waste and become subject to destruction and disposal . <br /> Upon accumulation of cannabis waste , such waste will be rendered unusable by mixing it with <br /> spent soil or organic mediums previously utilized in Cultivation operations . cannabis waste and <br /> soil shall be co - mingled and grinded down to a uniform mixture , such that the cannabis waste is <br /> destroyed and unrecognizable from its original state . <br /> All cannabis waste will be identified , weighed , and tracked , both while on premises and at the <br /> time of disposal . The Operations Manager will be responsible for monitoring the destruction and <br /> disposal of waste and entering information into the State ' s Track and Trace as necessary . JKL <br /> shall maintain comprehensive records regarding cannabis waste that accounts for , reconciles , and <br /> evidences all activity related to the generation or disposition of cannabis waste . Upon destruction <br /> or disposal of cannabis goods , JKL shall also enter in the track and trace system the name of the <br /> employee performing the destruction or disposal , the reason for destruction or disposal , as well <br /> as the entity being used to collect and process the cannabis waste . <br /> Distribution Operations <br /> The primary activities involved in the operation of the commercial cannabis distribution business <br /> will involve the wholesale purchase and resale of cannabis goods , the provision of contract <br /> services for packaging , labeling , storage for lab testing , as well as the transportation of cannabis <br /> goods to licensed retailers and distributors , including cannabis flower , cannabis concentrates , and <br /> edible cannabis goods . All cannabis products for wholesale purchase or taken in for service by <br /> JKL shall be sourced only from State - Licensed Cultivators , Manufacturers and Distributors . <br /> Such cannabis goods may arrive pre - packaged for distribution into the commercial market , or in <br /> bulk to be packaged , and labeled by JKL prior to testing and distribution to retailers and <br /> distributors . <br /> All product transactions , including the physical transfer of cannabis goods , shall take place <br /> wholly inside the interior of the secure facility perimeter . <br /> Cannabis Product Storage <br /> Once Packaged into Bulk Batches , the cannabis flower shall be organized and stored on shelves <br /> located the Packaging and Labeling Room , and the Cannabis Product Storage Room where they <br /> will be quarantined for Lab Testing . <br /> Once , the finished product is appropriately bagged , organized , and labeled for storage , Bulk <br /> Packages shall remain within the Cannabis Product Storage Room until ready for distribution <br /> off- site following compliance lab testing and receipt of a Certificate of Analysis for the batch to <br /> be distributed . <br /> JKL SUNSHINE CORPORATION 17 <br />