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TEMPLATE <br />AGREEMENT and/or CITY's approval of a Regulatory Safety Permit. CITY may, at <br />its sole discretion, participate at its own expense in the defense of any such action, <br />but such participation shall not relieve the OPERATOR of its obligation hereunder. <br />7. OPERATOR Compliance with Laws. <br />OPERATOR agrees to comply with the City of Santa Ana Charter and Municipal Code, <br />including but not limited to Chapters 18, 21 and 40, and the laws and regulations of the <br />State of California. <br />8. Default and Termination for Cause. <br />This AGREEMENT may be terminated by CITY for cause with thirty (30) days' written <br />notice to OPERATOR. Cause as used in this section, is defined as: <br />A. Failure to comply with the terms of the City of Santa Ana Cannabis Regulatory <br />Safety Permit issued to OPERATOR by CITY; <br />B. Failure of OPERATOR to maintain a valid active City of Santa Ana Business License <br />as the commercial cannabis business approved by the Regulatory Safety Permit and <br />as operating; <br />C. Failure of OPERATOR to comply with the requirements of the Community Benefits <br />and Sustainable Business Practices Plan; <br />D. Unauthorized transfer by OPERATOR of the City of Santa Ana cannabis business <br />Regulatory Safety Permit issued by CITY; <br />E. Failure by OPERATOR to accurately report gross receipts information or other data <br />necessary for CITY to calculate/confirm operating agreement fees; <br />F. Failure by OPERATOR to pay operating agreement fees and related reimbursement <br />costs within thirty (30) days of the date those fees are due; <br />G. Failure by OPERATOR to cooperate with CITY or CITY's authorized agents in any <br />inspection, examination and audit of OPERATOR's commercial cannabis business <br />books and records (including tax filings and returns). <br />H. OPERATOR shall cure the default resulting from the cause for termination within <br />thirty (30) days of the date of the notice of termination. If OPERATOR fails to cure <br />the default within thirty (30) days of the date of the notice of termination for cause, <br />this AGREEMENT will be terminated. <br />I. This AGREEMENT will automatically terminate if: <br />i. OPERATOR's Regulatory Safety Permit is revoked by CITY or is not renewed by <br />CITY, or <br />ii. OPERATOR transfers its Regulatory Safety Permit pursuant to Santa Ana <br />Municipal Code section 40-12. <br />4 <br />75A-86 <br />