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and commitments as a condition of renewallextension of this AGREEMENT upon expiration <br />of the initial term and any extension <br />2. ecords Inspection Examination and Audit <br />to inspect, examine and;aud <br />returns), to ascertain the ama <br />agents shalt have the power <br />audit of such books and race <br />Including .but not limited to, d <br />'hat CITY is empowered under this Agreement <br />s books and records (including tax filings and <br />ig fees due and owing♦ CITY or its authorized <br />to conduct ,a full inspection, examination and <br />ax filings and returns) at any reasonable time, <br />Business hours, in the event any such books, <br />ade'fully available withinthe City of Santa Aria, <br />OPERATOR acknowledges and agrees that It shall reimburse CITY for the cost of ali <br />transportation, lodging, meals, portal-to-portal travel time, and other Incidental Costa <br />reasonably incurred by CITY or its authorized agents In obtaining said full inspection, <br />examination and auolt. In the event that said records inspection, examination and audit <br />determines the t,a net operating agreement fee payment deficiency of greeter than Five <br />Percent (5%) exists; OPERATOR acknowledges and agrees that it shall reimburse CITY for <br />the full cost of said reoords inspection, examination and audit reasonably Incurred by CITY <br />or Its authorized acents <br />3. Itirm, <br />This AGREEMENT stuff start on the date indicated above and shall terminate on <br />DoPembor 31, 2022 regardless of starting date unless terminated earlier in accordance with <br />$action 9 or 10 of this AGREEMENT <br />4. Business License Required. <br />A valid Citv'of <br />is required for <br />the <br />the City of Santa Ana without first having procured a <br />6: Operi ting Cgnuxtercial Cannabis Business. <br />Im <br />OPERATOR shall not operate a commercial cannabis business authorized under the <br />Santa Ana Municipal Code unless: <br />A. It is the Yielder of a valid Regulatory Safety Permit issued by CiTY in accordance with <br />the procedures and requirements of Article I of Chapter 40, of the Santa .Aria <br />iviunicipal -Code; and <br />B: At such time as the State of Caiifornie requires cannabis business facilities and <br />businesses to hold a valid license or permit issued by the Mate of California, It also <br />holds such license or permit,, unless, however, such permit or license is subsequently <br />riot required by the State of California for the type of cannabis facility or business <br />operation that Is the subject of this AGREEMENT. <br />2 <br />