01/28/2019 BOARD OF SELECTMEN Agenda Packet

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(DRAFT-FOR DISCUSSION PURPOSES ONLY) 2. Annual Payment. In the event that the Company obtains a Final License, or such other license and/or approval as may be required,for the operation of the Establishment in the Town by the Massachusetts Cannabis Control Commission (the "CCC"), or such other state licensing or monitoring authority, as the case may be, and receives any and all necessary and required permits and licenses of the Town, and at the expiration of any final appeal period related thereto, said matter not being appealed further,which said permits and/or licenses allow the Company to locate, occupy and operate the Establishment in the Town,then the Company agrees to provide the following Annual Payment for each year this Agreement is in effect; provided,however,that if the Company fails to secure any such other license and/or approval as may be required, or any of required municipal approvals, the Company shall reimburse the Town for its legal fees associated with the negotiation of this Agreement. a. Company shall make Annual Payments in an amount equal to three percent(3%) of gross revenue (excluding taxes) from.Adult-Use marijuana and marijuana product sales at the Establishment. In the first year of operation,the Annual Payment shall be paid in two payments. The first payment shall be in the amount of Two Hundred Thousand($200,000)upon commencement of sales at the retail Establishment in Town.. The second payment shall be the balance of the three percent of gross sales less the initial Two hundred Thousand ($200,000)payment.,The balance ofthe Annual Payment shall be due no later than twelve(12)months after the opening date(the"Opening Date."). b. In the second,third,fourth and fifth years of operation: 3%of the gross sales (excluding taxes) of Adult-Use marijuana and marijuana products sales at the Establishment in each year of operation shall be paid in two (2) six(6)month segments;the first, covering the first six(6)months of the operating year,measured annually form the Opening Date, shall be paid within two hundred forty (2A 0) days and the balance,covering the second six(6)months of the operating year,to be paid within sixty(60)days after the end of the year of operation. c. With regard to any year of operation for the Establishment which is not a full calendar year, the applicable Annual Payments shall be pro-rated accordingly. 3 . Payments. Company shall mare the Annual Payments set forth in Paragraph 2, above,to the Town of Mashpee. To the extent permitted by law, the Treasurer of the Town may hold the Annual Payments in a separate account, to be expended by the Town without further appropriation pursuant to G.L. c.44; §53A, or otherwise in trust, for the purposes of addressing the potential health,safety, and other effects or impacts of the Establishment on the Town and on municipal programs, services,personnel, and 2