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TEMPLATE <br />Percent (5%) exists; OPERATOR acknowledges and agrees that it shall reimburse CITY for <br />the full cost of said records inspection, examination and audit reasonably incurred by CITY <br />or its authorized agents. <br />Term. <br />This AGREEMENT shall start on the date indicated above and shall terminate on <br />December 31, 2020 regardless of starting date unless terminated earlier in accordance with <br />Section 9 or 10 of this AGREEMENT. The AGREEMENT will have one (1) two-year <br />extension period until December 31, 2022 exercisable by a writing executed by the City <br />Manager and City Attorney's Office with the approval of OPERATOR. <br />4. Business License Required. <br />A valid City of Santa Ana Business License is required for all persons engaged in <br />transacting and carrying on any commercial cannabis business activity in the City of Santa <br />Ana. It is unlawful for any person or legal entity to commence, transact or carry -on cannabis <br />business activity in the City of Santa Ana without first having procured a City of Santa Ana <br />cannabis business license. <br />5. Operating Commercial Cannabis Business. <br />OPERATOR shall not operate a commercial cannabis business authorized under the <br />Santa Ana Municipal Code unless: <br />A. It is the holder of a valid Regulatory Safety Permit issued by CITY in accordance with <br />the procedures and requirements of Article 1 of Chapter 40, of the Santa Ana <br />Municipal Code; and <br />B. At such time as the State of California requires cannabis business facilities and <br />businesses to hold a valid license or permit issued by the State of California, it also <br />holds such license or permit; unless, however, such permit or license is subsequently <br />not required by the State of California for the type of cannabis facility or business <br />operation that is the subject of this AGREEMENT. <br />C. OPERATOR remains in compliance with any and all other laws and regulations <br />pertaining to commercial cannabis businesses. <br />D. OPERATOR shall remain in compliance with the operating requirements applicable <br />to commercial cannabis businesses contained in the City's Municipal Code. <br />6. OPERATOR Indemnification of CITY. <br />A. OPERATOR will indemnify CITY from any claims, damages, injuries, or liabilities of <br />any kind whatsoever sustained or incurred by CITY resulting from entering into this <br />AGREEMENT, and OPERATOR's performance and/or breach of this AGREEMENT. <br />B. OPERATOR agrees to defend, at its sole expense, any action against CITY, its <br />agents, officers, and employees related to this AGREEMENT. OPERATOR agrees <br />to indemnify and reimburse CITY for any court costs and attorney fees that CITY <br />may be required to pay as a result of any legal challenge related to this <br />75A-85 <br />