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Owner agrees to defend, at its sole expense, any action against City, its agents, <br />officers, and employees related to this Agreement. Owner agrees to indemnify and <br />reimburse the City for any court costs and attorney fees that the City may be <br />required to pay as a result of any legal challenge related to this Agreement and/or <br />the City's approval of a Regulatory Safety Permit. The City may, at its sole discretion, <br />participate at its own expense in the defense of any such action, but such <br />participation shall not relieve the Owner of its obligation hereunder. <br />12. Compliance with Laws. <br />Owner 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 />13. Default and Termination for Cause. <br />A. This Agreement may be terminated by the City for cause with thirty (30) days' <br />written notice to Owner. Cause as used in this section, is defined as: <br />1) Failure to pay In -Lieu fees within 30 days of the date those fees are due; <br />2) Failure to comply with the terms of the Cannabis Regulatory Safety <br />Permit issued by the City of Santa Ana; <br />3) Unauthorized transfer of the Cannabis Regulatory Safety Permit issued <br />by the City of Santa Ana; or <br />4) Failure to accurately report data necessary to calculate in -lieu fees <br />B. Owner may cure the default resulting from thecause for termination within 30 <br />days of the date of the notice of termination for cause. if Owner fails to cure the <br />default within thirty (30) days of the date of the notice of termination for cause, <br />this Agreement will be terminated. <br />C. This Agreement will be terminated by the City in the event that the City's <br />electorate pass a commercial cannabis tax applicable to Owner's commercial <br />cannabis business. In the event that occurs, this Agreement shall be terminated <br />on the date the new tax law goes into effect. <br />D. This Agreement will automatically terminate if: <br />1) Owner's Regulatory Safety Permit is revoked by the City or is not <br />renewed by the City, or <br />2) Owner's transfer of his or her Regulatory Safety Permit pursuant <br />to Santa Ana Municipal Code section 40-12. <br />14. Remedies. <br />A. It is acknowledged by the parties that City would not have entered into this <br />Agreement if it were to be liable in damages under this Agreement, or with <br />respect to this Agreement or the application thereof, except as hereinafter <br />expressly provided. <br />7 <br />75E-3-9 <br />