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<br />Agreement No. <br /> <br />and the Facilities in good and safe condition, free from waste, so far as affected by Licensee's <br />operations to the reasonable satisfaction of Railroad. If, after installation of the Facilities, <br />Licensee fails to keep the Property and the Facilities in good and safe condition, free from waste, <br />then Railroad may perform the necessary work at the expense of Licensee, which expense <br />Licensee agrees to pay to Railroad upon demand. <br /> <br />3. License Fee. Licensee shall pay to Railroad a license processing fee of$700. <br /> <br />4. Service Agreement. In the event Licensee performs work that causes Railroad to <br />perform services or furnish materials to Licensee, Railroad may require Licensee to enter into a <br />Service Agreement. Any costs incurred under this Section shall be in addition to those due under <br />Section 3. <br /> <br />5 . Work Procedures. All Work performed by Licensee shall be performed in <br />accordance with the Railroad's Work Procedures described in the attached Exhibit C-Iand <br />Railroad's Operating Systems Interface, as described in the attached Exhibit C, both of which are <br />attached to this Agreement and incorporated into it by this reference. <br /> <br />6. Condition to Effectiveness. As a condition precedent to the effectiveness of this <br />Agreement, Licensee shall have paid any license processing fee indicated in Section 3, made any <br />deposit indicated in Section 4 above and provided to Railroad insurance certificates that provide <br />evidence that Licensee has the kinds of insurance described in Exhibit C-2, which is attached to <br />this Agreement and incorporated into it by this reference. <br /> <br />7. Nonexclusiveness of License. This License is nonexclusive and nonpossessory. <br />Licensee must allow access to the Property by other parties possessing prior rights, unless <br />separate arrangements are made with such parties. <br /> <br />8. Prior Rights. This License is made subject and subordinate to the prior and <br />continuing right and obligation of Railroad, its successors and assigns, to use the Right-of-Way <br />in the performance of its transportation operations. There is reserved unto Railroad, its <br />successors and assigns, the right to construct, reconstruct, maintain and use existing and future <br />facilities and appurtenances, including, without limitation, existing and future transportation, <br />communication, railroad tracks and pipeline facilities and appurtenances in, upon, over, under, <br />across and along the Right-of-Way. This grant ~smade subject to all licenses, leases, easements, <br />restrictions, conditions, covenants, encumbrances, liens and claims of title that may affect the <br />Right-of- Way. The word "grant" shall not be construed as a covenant against the existence of <br />any of these or establish any ownership interest in the Right-of-Way. <br /> <br />9. Term of License. The term of this License shall commence upon the start of the <br />Work upon the Property and shall continue until this License is terminated or suspended as set <br />forth herein: <br /> <br />(a) Either party may terminate this Agreement without cause by giving 30 <br />calendar days written notice. <br /> <br />(b) Railroad may immediately terminate the License by notice to Licensee upon <br />Licensee's discontinuance of the use of the Facilities for one continuous year or the <br /> <br />SamTrans/lPB Standard License Form, Rev. 7/03 <br /> <br />2 <br /> <br />1025181.7 <br />