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2. Annual Payment
<br /> In the event that the Company obtains a Final License, or such other license and/or approval as
<br /> may be required, for the operation of the Establishment in the Town by the Massachusetts
<br /> Cannabis Control Commission(the"CCC"),or such other state licensing or monitoring authority,as
<br /> the case may be, and receives any and all necessary and required permits and licenses of the
<br /> Town, and at the expiration of any final appeal period related thereto, said matter.not being
<br /> appealed further,.which said permits and/or licenses allow the Company to locate, occupy and
<br /> operate the Establishment in the Town,then the Company agrees to provide the following Annual
<br /> Payment for each year this Agreement is in effect;provided,however,that if the Company fails to
<br /> secure any such other license and/or approval as may be required, or any of required municipal
<br /> approvals,the Company shall reimburse the Town for its legal fees associated with the negotiation
<br /> of this Agreement.
<br /> a. Company shall make Annual Payments in an amount equal to three percent(3%)of gross
<br /> revenue from Adult-Use marijuana and marijuana product sales at the Establishment. In
<br /> the first year of operation, the Annual Payment shall be paid in two payments. The first
<br /> payment, shall be in the amount of Two Hundred Thousand ($200,000) upon
<br /> commencement of sales at the retail Establishment In Town. The second payment shall
<br /> be the balance of the three percent of gross sales less the initial Two Hundred Thousand
<br /> ($200,000)payment.The balance of the Annual Payment shall be due no later than twelve
<br /> (12)months after the opening date(the"Opening Date").
<br /> b. In the second,third,fourth and fifth years of.operatlon:3%of the gross sales of Adult-Use
<br /> marijuana and marijuana products sales at the Establishment in each year of operation
<br /> shall be paid In two (2)six (6) month segments;the first, covering the first six(6) months
<br /> of the operating year, measured annually from the Opening Date,shall be paid within two
<br /> hundred forty (240) days and the balance, covering the second six(6) months of the
<br /> operating year,to be paid within sixty(60)days 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. Payments.
<br /> Company shall make the Annual Payments set forth in Paragraph 2, above, to the Town of
<br /> Mashpee. To the extent permitted by law, the Treasurer of the Town may hold the Annual
<br /> Payments in a separate account, to be expended by the Town without further appropriation
<br /> pursuant to G.L.c.44,§53A,or otherwise in trust,for the purposes of addressing the potential
<br /> health, safety, and other effects or impacts of the Establishment on the Town on municipal
<br /> programs, services, personnel, and facilities. Otherwise, said Annual Payments shall be
<br /> deposited into the General Fund. While the purpose of the Annual Payments is to assist the
<br /> Town In addressing any public health,safety, and other effects or impacts the Establishment
<br /> may have on the Town and on municipal programs, services, personnel, and facilities, the
<br /> Town may expend the Annual Payments at its sole and absolute discretion. Notwithstanding
<br /> the Annual Payments, nothing shall prevent the Company from making additional donations
<br /> from time to time to causes that will support the Town, including but not limited to local drug
<br /> abuse prevention/treatment/education programs.
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