1. Edson, Maytin & Matz LLP Colorado Criminal Defense Medical Marijuana Consultation Offices in Denver and Aspen www.WarrenEdson.com

2. Rapture Date: July 1, 2011 The Day Grey becomes Black and White

3. Possession, Manufacturing, and Distribution of Marijuana is Illegal.

4. Article 18 Section 14 Colorado Constitution Amendment 20 was enacted on July 1, 2001. Yes 915,527 No 786,983 Colorado Population: 5,024,748 Denver Population: 610,345 Patient numbers remained at about 2,000 from 2001- July 2009 A handful of “dispensaries”

5. Medical Marijuana Registry Application History % Change 2004200520062007200820092010 Jan295145131245495115082225% Feb326760123246587123201999% Mar377284143286807108721247% Apr39649813532811928537616% May348510816936012646881444% Jun606410314643119437864305% Jul52488114343224925806133% Aug5447971794893674508038% Sep3852941974953523 Oct49761142215274751 Nov5866911764249794 Dec30386519245710585 Totals5127301040195547204110768868 % Increase/year43%42%88%141%771%

6. Patient Explosion

7. Industry Explosion August 2009 June 2011  8,000 Patients 123,890 Patients  Dispensaries: ? 773 MMCs  Grows: ? 1,219 OPCOs  IPMs: ? 309 IPMs

8. Legislative Session 2010 House Bill 1284 Senate Bill 109

9. 3 New Statutory Defenses 1) Medical Marijuana Centers (MMC)  No more dispensaries  For profit  Can make retail sales to patients  Can make wholesale sales to other MMCs and IPMs 2) Optional Premises Cultivation Operation (OPCO)  Grow Operations  Has to be directly connected to one MMC  Is a manufacturing operation 3) Infused Product Manufacturer (IPM)  Can wholesale to any MMC. Can not make retail sales.  Can own their own OPCO or acquire medical marijuana from an MMC  All the medical marijuana from their OPCO must go into their infused products

10. DOR 77 Page “Micro Rules” March 2011 1) Clones are Plants 1.205 2) Signs Propagation, Vegetation, Flowing 1.205C Limited Access Area 10.100 “Do Not Enter – Limited Access Area – Access limited to Licensed owners, employees and contractors only” 12” * 12” ½ inch in height 3) Occupational Licenses 8.100 Key, Support, and Registration – $75 to $250 – Employee Manual 4) New Registry 1.200 MMC registers with MMED. Include relative plant count BUT do your homework 72 hours

11. DOR Micro Rules 5) Tracked  Weigh.  Processed. Transport within 48 hours to the MMC. 1.205 (I)  Manifest 11.2 (d) 6) Dirty Hippy Rule 12.100 Employee issues What happens? 7) Restriction on Moving Businesses 16.110 (d) Good Stuff: They listened to privacy concerns, reduced camera requirements, separate licenses, outdoor growing recognized, increased plants recommendations legitimized.

12. HB 11-1043 The 1284 “fix” Signed by the Governor on 6/1/11 1)Extend the moratorium for businesses and communities 2)No more clone “Immature Plants” CRS 12-43.3-104 (1.5) -can sell to patients or Primary Caregivers -can sell up to ½ the recommended plant count CRS 12-43.3-402 3) Records now private CRS 12-43.3-202 (d) 4) Some felons can play CRS 12-43.3-307 (h) 5) Owners vs. Employees -Residency 6) OPCOs locations no longer confidential CRS 12-43.3-310 7) 35 day rule is kind of sort of gone CRS 12-43.3 (5) -Call CDPHE -Monday – Friday 8 am – 5 pm

13. HB 11-1043 The 1284 “fix” 8) Vending machines???? CRS 12-43.3-402 (5.5) 9) Labs can now develop, test, and produce “marijuana-based products.” CRS 12-43.3-402 (6)  But no ownership interest in MMCs or IPMs CRS 12-43.3-404 (10) 10) 500 Plant limit on OPCOs connected to IPMs. CRS 12-43.3-404 9(a) -huge out clause

14. HB 11-1043 The 1284 “fix” 11) Single grow for common owned centers. CRS 12-43.3-403(2) 12) Can give away MMJ:  indigent patients -State Health Agency  hospice care. CRS 12-43.3-403 9(c) 13) Physician issue addressed CRS 25-1.5-106 14) Caregivers, ALL, have to register with the State Medical Marijuana Licensing Authority. CRS 25-1.5-106 7(e)

15. Gambling and Booze

16. Reexamine the Numbers Colorado: 5,024,748 Denver: 610,345 Patients 123,890 2.5 % of the TOTAL Population Number of 7-11’s in Denver? -69 Number of Starbucks in Denver? -84 Number of Dunkin Donuts in Colorado? -0 Number of MMCs in Denver? -270 One for every 2,260 Denver Residents Statewide 159 Patients per MMC Over 1,100 different MDs have signed an MMJ recommendation.

17. Rapture Date 7/1/11 Caregiver registry New MMC registry through MMED Occupation licenses required Sanitation Rules Packaging/labeling required Cameras required Manifest required Labs can manufacture Increased recommendations recognized. New MMC registry through MMED Packet from MMED will be out this week

18. Edson, Maytin & Matz LLP Colorado Criminal Defense Medical Marijuana Consultation Offices in Denver and Aspen www.WarrenEdson.com