Document:

alid_ex102.htm

EXHIBIT 10.2
  
 Ministry of Justice and Law
 Republic of Colombia
 RESOLUTION 0754 OF  AUG 3RD 2018
 Whereby a License to use seeds for sowing is granted
  
 THE DEPUTY DIRECTOR OF CONTROL AND FISCAL MONITORING OF CHEMICALS AND NARCOTICS OF THE MINISTRY OF JUSTICE AND LAW
  
 In exercise of the legal powers, especially those conferred by Law 1787 of 2016; Decree 1427 of 2017, Decree 813 of 2017, in accordance with the provisions of Resolutions 577 and 578 of 2017 of the Ministry of Justice and Law, in application of the rules established in the Administrative Procedure and Contentious Administrative Code, and
  
 CONSIDERING
  
 That by means of file EXT18-0012097 dated March 23rd, 2018, Mr. Holger Audine Amaya Chacón, holder of ID card No 88.135.481 in his capacity as legal representative of the company MEDICOLOMBIA'S CANNABIS S.A.S. identified with TIN 901.158.575-0, hereinafter the applicant, applied for the granting of a license for the use of seeds for sowing, for the modality of trading and delivery.
  
 That in compliance with articles 2.8.11.2.1.5. and 2.8.11.2.3.2 of Decree 780 of 2016 (Article 1 of Decree 613 of 2017), and Article 4 of Resolution 577 of 2017 of the Ministry of Justice and Law, in accordance with the provisions of Resolution 578 of 2017 of the Ministry of Justice and Law, the applicant submitted the necessary documentation to assess compliance with the general and specific requirements for the granting of the License to use seeds for sowing in the modality required by it.
  
 That Article 8 of Law 1787 of 2016 establishes that “[the] Ministry of Health and Social Protection and the Ministry of Justice and Law, through the Sub-Directorate of Control and Fiscal Monitoring of Chemical and Narcotics, shall charge for the evaluation and follow-up services to the applicants or holders of the licenses, established in this law and its regulatory provisions”.
  
 That in accordance with Article 2.8.11.7.1. of Decree 780 of 2018, "[i]n the development of Articles 8 and 9 of Law 1787 of 2016, the fees to recover the costs of the services provided by the control authorities are regulated in accordance with Article 2.8.11.1.4, on the occasion of the evaluation services provided to the applicants or holders of the licenses for the use of seeds for sowing, cultivation of cannabis, and manufacture of cannabis derivatives, according to their competencies, as well as the monitoring of both the administrative and operational components. (...)”
  
 That Article 2.8.11.7.1 of Decree 780 of 2016, provides that "(the) payment of the fee may be made in installments, without this generating additional costs or reductions. The first fee must be paid prior to the filing of any of the license applications and will correspond to the amount equivalent to the costs of evaluating the application. The following fees will be annual and the proof of payment of the same one will be given like requirement for the request of quotas that the applicants do for the applicable cases. This annual amount will correspond to the administrative and operative control and follow-up tasks liquidated annually. In the case of the licenses that do not need to request quotas, the payment of the quotas will be made in the first calendar month of each year".
  
 	 
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 That once the technical and legal analysis of the license application was performed, it was clear that the company complies with the provisions of Decree 780 of 2016 (Article 1 of Decree 613 of 2017) and Resolutions 577 and 578 of 2017 of the Ministry of Justice and Law.
  
 Therefore, the Sub-directorate of Control and Inspection of Chemical and Narcotic Substances:
  
 RULES:
  
 Article 1. License. To grant license to use seeds for sowing, to MEDICOLOMBIA'S CANNABIS S.A.S. identified with TIN 901.158.575-0, legally represented by Mr. Holger Audine Amaya Chacón holder ID card No 88.135.481 and in his capacity as alternate legal representative Mr. Luis Enrique Niño Rojas holder of ID card No 91.150.343, in the following terms:
  
 	  
	 Property

	 Modality
	 Location
	 Real estate registration number

	 Marketing or delivery
	 Villa Silvia Lot of Land
 Countryside Division El Duende
 Los Santos - Santander
	 314-11848

 
    
 Paragraph 1. The property is owned by Mrs. Idma Chacón de Amaya holder of ID card No. 27.758.013 and Lurdy Marie Trigos Rueda holder of citizenship card No. 37.317.152, who through a lease contract granted the right to use the property to MEDICOLOMBIA'S CANNABIS SAS.
  
 Paragraph 2. The activities authorized within the framework of this license will be carried out exclusively by personnel directly linked to the company MEDICOLOMBIA'S CANNABIS S.A.S. under the conditions established herein.
  
 Article 2. Validity. This license will be valid for 5 years from its date of enforcement and may be re-certified, which must be requested three (3) months prior to its expiration.
  
 Article 3. Regulatory Compliance. As a licensee using seeds for sowing in the modalities indicated in Article 1 of this resolution, MEDICOLOMBIA'S CANNABIS S.A.S. identified with TIN 901.158.575-0, must comply with the conditions specified in this administrative act; with the provisions of Decree 780 of 2016 (Article 1 of Decree 613 of 2017), in Resolutions 577 and 578 of 2017 of the Ministry of Justice and Law, and the applicable rules or those that modify or add them.
  
 Article 4. Method of payment. The payment of the quotas corresponding to the follow-up, administrative and operative control of the license granted by means of the present administrative act will be made in the following way: 
  
 Fees: The licensee shall pay to the Ministry of Justice and Law, four (4) fees, each for 27,69 Current Legal Daily Minimum Wage (SMDLV as per its initials in Spanish), within the first calendar month of the four (4) following years after the date of issuance of the license. The respective proof of payment must be submitted within the first 15 calendar days of February of each year to the Ministry of Justice and Law.
  
 	 
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 Paragraph 1. The payment of the fees mentioned in this article must be made in the bank account of the Ministry of Justice and Law. 
  
 Paragraph 2. For the effects of this article, the calculation of the value to be paid by the licensee must be made according to the value of the SMDLV at the date the corresponding payment of the respective fee is made. 
  
 Article 5. Accrual of default interest. Failure to pay any of the fees corresponding to the service of monitoring and control of the license granted, in the manner and within the time period established by this administrative act, generates the obligation to pay interest on arrears, under the terms of Article 3 of Law 1066 of 2006.
  
 The foregoing, without prejudice to the provisions of Article 2.8.11.9.2 and item 14 of Article 2.8.11.9.1 of Decree 780 of 2016 (Article 1 of Decree 613 of 2017), or the rule that replaces, adds or modifies it.
  
 Article 6. To personally notify the content of this Resolution to Mr. Holger Audine Amaya Chacón, fully identified in the file, who for this purpose may be summoned in the e-mail holgeraudi62@gmail.com, giving him a copy thereof. If the personal notification is not achieved, it will proceed according to the provisions of Article 69 of the Administrative Procedure and Contentious Administrative Code.
  
 Article 7. To communicate the content of this Resolution to the Mayor's Office of Los Santos-Santander.
  
 Article 8. Appeals. This resolution may be challenged by an appeal for reversal before the Sub-directorate of Control and Fiscal Monitoring of Chemicals and Narcotics and the appeal before the Directorate of Drug Policy and Related Activities of the Ministry of Justice and Law in the procedure of personal notification, or within ten (10) days after the notification.
  
 SO ORDERED
  
 Issued in Bogotá, D.C., on 
  
  AUG 03rd 2018 
  
 Signature
 GLORIA PATRICIA CRISPÍN AMOROCHO
 Deputy Director of Control and Fiscal Monitoring of Chemicals and Narcotics
  
 Prepared by:  Elizabeth Rodriguez Rincón
 Reviewed by: Giselle Tobo Niño
                          Daniela Hernandez
  
 	 
	3alid_ex103.htm

EXHIBITS 10.3
  
 REPUBLIC OF COLOMBIA
 MINISTRY OF HEALTH AND SOCIAL PROTECTION 
 RESOLUTION NUMBER 00005521 OF 2018
 ( DEC 4th 2018)
 Whereby a license for the manufacture of cannabis derivatives is granted to
 MEDICOLOMBIA'S CANNABIS S.A.S.
  
 THE DIRECTOR OF MEDICINES AND HEALTH TECHNOLOGIES 
  
 In the exercise of his powers, in particular those conferred by Article 3 of Law
 30 of 1986, 6 of Law 1787 of 2016, article 2.8.11.1.4 of Decree 780 of
 2016, Resolution 2892 of 2017 and Resolution 3226 of 2018
   
 CONSIDERING
  
 That in Title 11 of Part 8 of Book 2 of Decree 780 of 2016, subrogated by Decree 613 of 2017, the obligations, conditions and requirements of the license to manufacture cannabis derivatives for medicinal or scientific purposes are defined, understanding these as the procedures that make it possible to obtain narcotics, including the production of resins, oils, tinctures, extracts and preparations, as well as the refining and transformation of some narcotics into others.
  
 That this Ministry issued Resolutions 2891 and 2892 of 2017 which establish provisions associated with the granting of the license to manufacture cannabis derivatives. 
  
 That the company MEDICOLOMBIA'S CANNABIS S.A.S. identified with T.I.N. 901158575-0 by means of file number 201842300427442 of March 23rd, 2018, requests the granting of a license for the manufacture of cannabis derivatives in the modalities of: i) national use, by filling out the form 'GMTF04 - Application for the license to manufacture cannabis derivatives" and attaching the corresponding documentation (Fol. 1 to 139). 
  
 That the Directorate of Medicines and Health Technologies of this Ministry, analyzed the information provided by the company MEDICOLOMBIA'S CANNABIS S.A.S. and made a request through communication filed with the number 201824000551321 of May 15th, 2018 (FoI.144 ) in which he requested documentation related to: a) Documentation from the main and alternate technical director, in accordance with the provisions of Article 6 of Resolution 2892 of 2017; b) Copy of the identification document of the legal representatives; c) Income statement signed by the legal representative and the accountant, indicating the legal origin of the income, and the commitment to adopt measures to prevent future income from illegal activities; d) Documentation regarding the manufacturing plan; and e) Documentation regarding the security protocol in accordance with  what is established in the annex of Resolution 2892 of 2017.
  
 That by means of the written radicated with number 20184230076862 of May 25th, 2018 and 201842300915182 of June 12st, 2018 MEDICOLOMBIA'S CANNABIS S.A.S, submitted new documentation in response to the request made by this Ministry (Fls.145-229 and 227 to 228).
  
 	 
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 That the Directorate of Medicines and Health Technologies of this Ministry analyzed the information provided by the company MEDICOLOMBIA'S CANNABIS S.A.S. and made a second request by communication filed with number 201824000944381 of August 8th, 2018 (Fol. 233) related to: a) Corrections in the filling out of the format "GMTF04 - Application for the license to manufacture cannabis derivatives "; b) Copy of the alternate technical director's professional card; c) Copy of the alternate legal representative's identification document; d) Payment of $3.000,00 COP to complete the fee for the evaluation costs of the application for the license to manufacture cannabis derivatives for national use, in accordance with the provisions of Resolutions 2891 of 2017 and 2986 of 2018; e) Complete the Income Statement indicating the commitment to adopt measures to prevent future income from illegal activities; f) Photographic records of the property in the current conditions; and g) Discrimination of the amount of investment. 
  
 That MEDICOLOMBIA'S CANNABIS S.A.S., under file number 201842301309832 of August 30th, 2018, gathered new documentation to add the modality of export to the application for the license to manufacture cannabis derivatives, submitting: a) Plan of exports; and b) Receipt of the payment made to add the modality of export (Fols.234 to 249).
  
 That through a written document filed under number 201842301309792 of August 30th, 2018, MEDICOLOMBIA'S CANNABIS S.A.S., gathered the corresponding documentation, in response to the second requirement made by the Directorate of Medicines and Health Technologies of this Ministry (Fols.250 to 269). 
  
 That MEDICOLOMBIA'S CANNABIS S.A.S. provided additional documentation with file number 201842301400802 of September 13th, 2018, as support to the application for the license to manufacture cannabis derivatives in the modality of export (Fols.270 to 273).
  
 That the Directorate of Medicines and Health Technologies, after verifying the requirements set out in current regulations, finds that MEDICOLOMBIA'S CANNABIS S.A.S., meets the requirements for the granting of the license to manufacture derivatives of cannabis for strictly medical and scientific purposes in the modality of national use, and therefore goes ahead and grant the relevant license to manufacture cannabis derivatives for medical and scientific purposes for this modality.
  
 That after reviewing the documentation provided by MEDICOLOMBIA'S CANNABIS S.A.S. regarding the modality of export, it is concluded that the requirements established in Article 2.8.11.1.3. of Decree 613 of 2017 were not met, for the following reasons: i) Although the applicant provided to folio 257 the required payment in the amount of $3.000,00 COP to complete the amount corresponding to the fee for evaluation costs of the license application for the manufacture of cannabis derivatives for national use, the provisions of Article 1 of Resolution 2986 of 2018 were not complied with in relation to the payment of the fee for evaluation costs of the addition of the export modality, since the payment made, attached to folio 249, does not match the difference between the evaluation fee of the license of manufacture of cannabis derivatives for national use and export and the assessment fee for the license to manufacture cannabis derivatives for national use; ii) In the submitted export plan, there is no evidence of compliance with the requirements set forth in Article 2.8.11.1.3 of Decree 780 of 2016, because: a) It is not projected for the first year, b) It does not indicate the rule that establishes the medical and/or scientific use of cannabis in the following countries identified by the applicant as potential importers: Germany, Brazil, Puerto Rico and Israel, c) There is no indication of the entities through which the exports will be channeled, that is, the government entities that exercise control over the medical and scientific use of cannabis in each of the countries identified as potential importers, d) In the clauses of the model contract through which the ownership of the cannabis derivatives will be transferred no provisions are included to guarantee that the use of the product to be exported will be exclusively for medical and/or scientific purposes, and e) In the section "Distribution logistics" the proposal of distribution of the products to be exported by a company different from the applicant is described, so that the export plan provided does not fully indicate the projection of the activities to be developed by the applicant company MEDICOLOMBIA'S CANNABIS S.A.S. 
  
 	 
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 That in accordance with the above, after evidence of the exhaustion of the two (2) requirements that can be issued in the processing of the application for a cannabis license, in accordance with the provisions of Article 7 of Resolution 2892 of 2017, without having met all the requirements for the export modality, as indicated in Article 2. 8.11.2.1.8 of Decree 780 of 2016, as amended by Decree 613 of 2017, the application made must be denied, since the applicant submitted inconsistent information with respect to its application for the manufacture of cannabis derivatives for export.
  
 In view of the above,
 RULES
  
 Article 1. Grant the license to manufacture cannabis derivatives 077, in the modality of national use, to MEDICOLOMBIA'S CANNABIS S.A.S. identified with T.I.N.901158575-0, legally represented by Mr. HOLGER AUDINE AMAYA CHACÓN, holder of ID card number 88.135.481 issued in Ocaña, for the term of five (5) years. 
  
 Paragraph. The manufacturing process may only be carried out in the property identified with real estate registration number 314 -11848, located in the countryside division EL DUENDE in the municipality of LOS SANTOS, in the department of Santander, during the same term of validity of this license.
  
 Article 2. Deny the license to manufacture cannabis derivatives in the modality of export, to MEDICOLOMBIA'S CANNABIS S.A.S. identified with T.I.N. 901158575-0, legally represented by Mr. HOLGER AUDINE AMAYA CHACÓN, holder of ID card number 88.135.481 issued in Ocaña, for the reasons explained in the legal grounds of this administrative act.
  
 Article 3. The license to manufacture cannabis derivatives that is granted by means of this administrative act includes from the reception of the harvest up to the manufacture of cannabis derivatives and it must execute in accordance with the obligations provided in Title 11 of Part 8 of Book 2 of Decree 780 of 2016 subrogated by Decree 613 of 2017 and in Resolutions 2891 and 2892 of 2017.
  
 Article 4. The holder of the license for the manufacture of cannabis derivatives granted by this resolution may only obtain the cannabis from a holder of a cultivation license or an importer registered with the National Narcotics Fund and when he has a valid quota granted by this Ministry, pursuant to the provisions of Article 24 of Resolution 2892 of 2017.
  
 Article 5. The obligations of the holder of the license for the manufacture of cannabis derivatives, in addition to those contained in Article 2.8.11.5.1. of Decree 780 of 2016, are as follows:
  
 	 a. 
	Comply with the terms, deadlines and conditions established for obtaining the ordinary and supplementary quotas for the manufacture of cannabis derivatives.
	  
	  

	 b. 
	Manage before the National Narcotics Fund the favorable concept of quotas, discussed in article 27 of Resolution 2892 of 2017 and to have the respective supports.

 
   
 	 
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 	 c. 
	To have the supporting documents of validation and physicochemical analysis made to the psychoactive cannabis and its derivatives, to determine its content of THC, CBD and CBN, attending the provisions in the third clause of article 28 of the mentioned Resolution 2892 of 2017, as well as the documentation of the applied analytical methodology.
	  
	  

	 d. 
	Have the supporting documents of the manufacture of each lot of derivatives of psychoactive cannabis, including production orders and registration of lots, with the all-clear given and formalization-release formats of industrial lots, as established by the National Narcotics Fund, in accordance with the provisions of paragraph one of article 28 of Resolution 2892 of 2017. 
	  
	  

	 e. 
	Implement the checks and formats for the transport of psychoactive cannabis derivatives, referred to in article 35 of Resolution 2892 of 2017.
	  
	  

	 f. 
	Submit the reports provided for in Article 29 of Resolution 2892 of 2017 and once the Information Mechanism for Cannabis Control (MICC as per its initials in Spanish) is implemented, keep all information on this platform updated.
	  
	  

	 g. 
	Have a technical director and his or her alternate, in accordance with the provisions of article 6 of the aforementioned Resolution 2892 of 2017.
	  
	  

	 h. 
	Ensure the implementation and monitoring of the security protocol and inform the National Narcotics Fund of any changes or events in it.

 
   
 Article 6. This Ministry shall declare the revocation of this administrative act, if the license holder incurs in any of the causes of resolutory condition contemplated in article 2.8.11.9.1 and according to the provisions of article 2.8.11.9.2. of Decree 780 of 2016.
  
 Article 7. Personally notify the content of this resolution to the legal representative of MEDICOLOMBIA'S CANNABIS S.A.S., legal entity identified with T.I.N.901158575-0, to its attorney-in-fact or to whoever is authorized for this purpose, at the address for notifications: Carrera 49 No. 54 - 73, in the city of Bucaramanga, Santander, informing it that an appeal for replacement, can be brought to challenge this resolution which must be filed in writing in the personal procedure of notification, or within ten (10) days after it, under the terms provided in Article 76 of the Administrative Procedure and Contentious Administrative Code.
  
 Paragraph. If personal notification cannot be made, the procedure shall be in accordance with the provisions of Article 69 of the Administrative Procedure and Contentious Administrative Code  - CPACA (as per its initials in Spanish).
  
 Article 8. Once this administrative act becomes final, communicate its contents to the U.A.E. National Narcotics Fund, the Sub directorate of Control and Fiscal Monitoring of Chemicals and Narcotics of the Ministry of Justice and Law and the Municipality of Los Santos - Santander.
  
 Article 9. This resolution is effective as from the date of execution.
  
 SO ORDERED
  
 Issued in Bogotá, D.C. on:
  
 DEC 4th 2018
 Signature
 AURELIO MEJIA MEJIA
 Director of Medicines and Health Technologies
  
 	 
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