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2. Annual Payment
<br /> In the event that the Company obtains a Final License or Licenses , or such other licenses and/or
<br /> approvals as may be required, for the operation of the Establishment in the Town from Ahe
<br /> Massachusetts Cannabis Control Commission (the "CCC"), or such other state licensing or
<br /> monitoring authority, as the case may be, and receives any and all necessary and required permits
<br /> and licenses of the Town, and at the expiration of any final appeal period related thereto, said
<br /> matter not being appealed further, which said permits and/or licenses allow the Company to
<br /> locate, occupy and operate the Establishment in the Town, then the Company agrees to provide
<br /> the following Annual Payment for each year this Agreement is in effect; provided, however,that if
<br /> the Company fails to secure any such other license and/or approval as may be required, or any of
<br /> required municipal approvals, the Company shall reimburse the Town for its reasonable legal fees
<br /> associated with the negotiation of this Agreement.
<br /> a. Company shall make Annual Payments in an amount equal to three percent (3%) of gross
<br /> revenue from marijuana and marijuana product sales at the Establishment. In the first
<br /> year of operation, the Annual -Payment shall be paid in two payments. The first payment
<br /> shall be in the amount of Two Hundred Thousand ($200,000) within sixty (60) days of
<br /> commencement of sales at the Establishment. The second payment shall be the balance
<br /> of the three percent of gross sales less the initial Two Hundred Thousand ($200,000)
<br /> payment. The balance of the Annual Payment shall be due no later than thirteen (13)
<br /> months after the initial marijuana and/or marijuana product sales date (the "opening
<br /> Date")
<br /> b. In the second, third, fourth and fifth years of operation; 3% of the gross marijuana and
<br /> marijuana products,sales/distribution at the Establishment in each year of operation shall
<br /> be paid in two (2) six (6) month segments; the first, covering the first six(6) months of the
<br /> operating year, measured annually form the opening Date, shall be paid within two
<br /> hundred forty(210) days of the commencement of the year of operation and the balance,
<br /> covering the second six(6) months of the operating year, to be paid within thirty (30) days
<br /> after the end of the year of operation.
<br /> c. with regard to any year of operation for the Establishment which is not a full calendar
<br /> year,the applicable Annual Payments shall be pro-rated accordingly.
<br /> 3. Dedication of Payments.
<br /> Company shall make the Annual Payments set forth in Paragraph 2, above, to the Town of
<br /> Mashpee. To the extent now or hereafter permitted by law, the Treasurer of the Town may hold
<br /> the Annual Payments in a separate account, to be expended by the Town without further
<br /> appropriation pursuant to G.L. c. 44, § 63A, or otherwise in trust, for the purposes of
<br /> addressing the potential health, safety, and other effects or impacts of the Establishment on
<br /> the Town on municipal programs, services, personnel, and facilities. otherwise, said Annual
<br /> Payments shall be deposited into the General Fund, While the purpose of the Annual
<br /> Payments is to assist the Town in addressing any public health, safety, and other effects or
<br /> impacts the Establishment may have on the Town and on municipal programs, services,
<br /> personnel, and facilities, the Town may expend the Annual Payments at its sole and absolute
<br /> discretion. Notwithstanding the Annual Payments, nothing shall prevent the Company from
<br /> making additional donations from time to time to causes that will support the Town,
<br /> including but not limited to local drug abuse prevention/treatment/education programs.
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