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<br /> 2 <br />current location or be interpreted to prevent the City from modifying or eliminating <br />internal circulation at the Plant in the future. If the City continues to maintain a road on <br />property owned by the City that provides access to the Easement Area, the City will <br />allow Port Parties to use such road, as long as use by the Port Parties will not damage <br />such road or interfere with the operation of any existing or future City facilities. <br />2. Payment. As consideration for City entering into this Agreement, Port <br />shall pay to City the sum of Five Hundred Thousand Dollars ($500,000) (the <br />“Payment”). The Payment shall be sent to the City in the same manner provided for by <br />this Agreement for notices between the Parties, or in such other manner as the Parties <br />may mutually agree. In the event that the Port has not provided the Payment to the City <br />within thirty (30) days of the Effective Date, the City may, in its sole discretion and <br />notwithstanding anything herein to the contrary, terminate this Agreement upon written <br />notice to the Port. <br />3. Conditions of Use. Port may use the Service Road for ingress and egress <br />subject to the following conditions: <br />(a) The Service Road is secured behind a locked fence. In order to <br />obtain access to the Service Road, the Port must notify the City at least forty-eight (48) <br />hours prior to any use, except in case of emergency, such as breach of the dike, in <br />which case the Port must notify the City immediately. <br />(b) Port and Port Parties will comply with all applicable laws, <br />regulations, rules, and permits pertaining to the use of the Service Road, including, but <br />not limited to the California Vehicle Code, the Occupational Health & Safety Act, and all <br />applicable environmental laws, health and safety laws and regulations, whether federal, <br />state or local. Port shall obtain all permits required for use of the Service Road, or <br />transportation of materials thereon, from any public agency with jurisdiction over such <br />use or transport. <br />(c) The Port shall be liable for any damage to the Service Road or <br />other property owned by the City that occurs as a result of this Agreement and use of <br />the Service Road, except to the extent that any damage is caused by the negligence or <br />willful misconduct of City, or its employees. <br />4. Term. The license granted in this Agreement will commence on the <br />Effective Date and shall remain in full force and effect until terminated by the Parties <br />(the “Term”). City may terminate this Agreement by written notice to Port following <br />Port’s breach of its obligations under this Agreement, but only if Port has failed to cure <br />such breach within fifteen (15) days of written notice from City, or such other reasonable <br />time as determined by the City. Port’s indemnity obligations set forth in this Agreement <br />survive termination of this Agreement for any reason. <br />5. Insurance. Before fully executing this Agreement, Port, at its own cost <br />and expense, unless otherwise specified below, shall procure the types and amounts of <br />insurance listed below against claims for injuries to persons or damages to property that