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8. Payment of In -Lieu fee does not authorize unlawful business. <br />A. The payment of the In -Lieu fee required by this Agreement, and its acceptance by <br />the City, shall not entitle any person to carry on any commercial cannabis business <br />unless the person has complied with all of the requirements of the Santa Ana <br />Municipal Code and all other applicable laws, nor to carry on any commercial <br />cannabis business in any building or on any premises in the event that such building <br />or premises are situated in a zone or locality in which the conduct of such <br />commercial cannabis business is in violation of any law. <br />No fee paid under the provisions of this Agreement shall be construed as authorizing <br />the conduct or continuance of any illegal or unlawful business, or any legal business <br />in an illegal manner, or any business in violation of any ordinance of the City. <br />Nothing in this Agreement implies or authorizes that any activity connected with the <br />distribution or possession of cannabis is legal unless otherwise authorized and <br />allowed by Califomia and federal law. Nothing in this section shall be applied or <br />construed as authorizing the sale of cannabis. <br />9. Business License Required. <br />A business license is required for all persons engaged in transacting and carrying on any <br />commercial cannabis business activity in the City. It is unlawful for any person or legal entity <br />to commence, transact or carry on business in the City without first having procured a <br />business license from the City. <br />10. Operatinq Commercial Cannabis Business. <br />Owner shall not operate a commercial cannabis business authorized under the Santa <br />Ana Municipal Code unless: <br />A. It is the holder of a valid Regulatory Safety Permit issued by the City in accordance <br />with 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 commercial cannabis 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 not required <br />by the State of California for the type of commercial cannabis facility or business <br />operation that is the subject of this Agreement. <br />C. Owner remains in compliance with any and all other laws and regulations pertaining <br />to commercial cannabis businesses. <br />11. Owner Indemnification of City. <br />A. Owner will indemnify City from any claims, damages, injuries, or liabilities of any kind <br />whatsoever sustained or incurred by City resulting from entering into this Agreement, <br />and Owner's performance and/or breach of this Agreement. <br />75E-3-8 <br />