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NOW, THEREFORE, in consideration of the premises and mutual covenants and <br /> agreements herein expressed and of other good and valuable consideration, the receipt and <br /> sufficiency of which are hereby acknowledged and confessed by the parties hereto, the parties <br /> hereto do hereby agree as follows: <br /> 1. Grant of Easement Encroachment. <br /> (a) City of La Porte Easement Encroachment Grant. The City of La Porte hereby <br /> grants to the Port and Frontier, for the benefit of the Port and Frontier, and its respective agents, <br /> tenants, employees, contractors, customers, invitees, licensees and permittees, and for each <br /> successor and assign of Frontier , an easement encroachment within, under, adjacent, upon, <br /> over, and across the City of La Porte Utility Easement for the purposes of(i) constructing a <br /> railroad bridge or bridges and related concrete slabs, (ii) operating a locomotive or railcar mover <br /> and any associated railroad or motorized equipment over and above the utility easement, (iii) to <br /> the extent permitted hereunder, repair and maintain the bridges and tracks by non-exclusive <br /> easement rights. The utility easement encroachment locations herein authorized(for the railroad <br /> bridge piers and concrete slabs) are located and designated on the attached four (4) exhibits: <br /> Exhibit "B" Parcel No. PE 3; Exhibit "B" Parcel No. PE 4; Exhibit "B" Parcel No. PE 5; and <br /> Exhibit"B"Parcel No. 6. <br /> (b) No Interference. The permitted encroachment to the Port and Frontier shall not <br /> impair, interfere with, or impede in any material way the operations of City of La Porte. The <br /> Port and Frontier further acknowledge that the City of La Porte and City of La Porte's agents, <br /> tenants, employees, contractors, customers, invitees, licensees, permittees, successors and _ <br /> assigns shall have unimpaired enjoyment and use of the City of La Porte utility easement ; <br /> provided that said enjoyment and use of the City of La Porte utility easement does not materially <br /> impair, interfere with or impede the encroachment granted the Port and Frontier in any material <br /> way. <br /> 2. Liens and Compliance with Laws. <br /> (a) Covenant Against Liens. <br /> (i) Frontier hereby covenants and agrees,to the fullest extent allowed by law, <br /> that it will not cause or permit any lien (including, without limitation, any <br /> mechanic's or materialman's lien) or claim for lien to be asserted against the City <br /> of La Porte utility easement or any interest therein, whether such lien or claim for <br /> lien results from or arises out of any act or omission of Frontier <br /> (b) Compliance with Laws. <br /> (i) Frontier shall not use the City of La Porte utility easement in any manner <br /> that violates any laws or regulations, may be dangerous,or constitutes a public or private <br /> nuisance, and Frontier shall obtain and maintain any and all required Port of Houston <br /> approvals. <br /> 3. Duration and Term. This Encroachment Agreement shall exist for the life of the <br /> Easement. <br /> 2 <br />