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related to the generation or disposition of cannabis waste.Upon destruction or disposal of cannabis goods, <br /> HDC shall also enter in the track and trace system the name of the employee performing the destruction <br /> or disposal,the reason for destruction or disposal,as well as the entity being used to collect and process <br /> the cannabis waste. <br /> Distribution Operations <br /> The primary activities involved in the operation of the commercial cannabis distribution business will <br /> involve the wholesale purchase and resale of cannabis goods,the provision of contract services for <br /> packaging,labeling,storage for lab testing,as well as the transportation of cannabis goods to licensed <br /> retailers and distributors,including cannabis flower,cannabis concentrates,and edible cannabis goods. <br /> All cannabis products for wholesale purchase or taken in for service by HDC shall be sourced only from <br /> State-Licensed Cultivators,Manufacturers and Distributors. <br /> Such cannabis goods may arrive pre-packaged for distribution into the commercial market,or in bulk to <br /> be packaged,and labeled by HDC prior to testing and distribution to retailers and distributors. <br /> All product transactions,including the physical transfer of cannabis goods,shall take place wholly inside <br /> 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 located <br /> the Packaging and Labeling Room,and the Cannabis Product Storage Room where they will be <br /> quarantined for Lab Testing. <br /> Once,the finished product is appropriately bagged,organized,and labeled for storage,Bulk Packages <br /> shall remain within the Cannabis Product Storage Room until ready for distribution off-site following <br /> compliance lab testing and receipt of a Certificate of Analysis for the batch to be distributed. <br /> This portion of the facility shall be monitored by interior surveillance cameras accessible to the <br /> Distribution Manager,Security Administrators,and HDC Executives,as well as the San Joaquin County <br /> Sheriff's Office upon request. <br /> Lab Testing <br /> After taking physical possession of a cannabis goods batch,HDC shall contact a testing laboratory and <br /> arrange for a laboratory employee to come to the facility to'select a representative sample for laboratory <br /> testing. <br /> At the time a batch sample is tested,the Distribution Manager shall ensure that the batch size from which <br /> the sample is taken meets state law requirements.The Distribution Manager shall be physically present to <br /> observe the laboratory employee obtaining the sample of cannabis goods for testing and ensure that <br /> increments of the sample are taken from throughout the batch. <br /> The sampling shall be video recorded with the batch number stated at the beginning of the video and a <br /> visible time and date indication on the video recording footage.The video recordings shall be maintained <br /> for 180 days. <br /> After the sample has been selected,HDC's Distribution Manager and the laboratory employee shall sign <br /> and date the chain of custody form attesting to the sample selection having occurred. However,HDC <br /> HE DEVELOPMENT CORP 16 <br />