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2. COMPENSATION <br />a. STATE FARM agrees to pay, and City agrees to accept as total payment for STATE <br />FARM's advertising rights set forth above, an annual fee of $23,000.00. <br />b. Payment of the first annual fee shall be made within thirty (30) days following <br />execution of this Agreement. Subsequent payments shall be made on or before September 1, <br />annually, during the term of this Agreement. Payment shall be mailed to: <br />Santa Ana Parks, Recreation and Community Services Agency <br />888 W. Santa Ana Boulevard, Suite 200 <br />Santa Ana, California 92702 <br />Attention: Carla Thompkins <br />3. TERM <br />The term of this Agreement shall be for a period of three (3) years, commencing October <br />1, 2007, with a right of refusal/renewal to extend additional years, as detailed in Section 4, below. <br />4. RIGHT OF REFUSAL / RENEWAL <br />STATE FARM shall have the right of first refusal and/or renewal to negotiate a new <br />agreement, with respect to advertising rights and conditions, satisfactory to both parties, to extend <br />this agreement for and additional two (2) years. STATE FARM shall notify City, in writing, no <br />less than 90 days prior to expiration of this Agreement, to exercise this right of Refusal/Renewal. <br />5. HOLD HARMLESS <br />STATE FARM agrees to and shall indemnify and hold harmless the City, its officers, <br />agents, employees, consultants, special counsel, and representatives from liability for personal <br />injury, damages, just compensation, restitution, judicial or equitable relief arising out of claims <br />for personal injury, including health, and claims for property damage, which may arise from the <br />content of STATE FARM's advertising. <br />Anything in the Agreement to the contrary notwithstanding, each party (the <br />"Indemnifying Party") shall indemnify and hold the other party (the "Indemnified Party") fully <br />harmless against any loss, damage, claim or expense of any kind whatsoever (including costs and <br />reasonable attorneys' fees), sustained or incurred by a third party as a result of the negligent or <br />intentional acts or omissions of the Indemnifying Party, and for which recovery is sought against <br />the Indemnified Party by that third party. The Indemnifying Party also shall indemnify the <br />Indemnified Party for any costs and reasonable attorneys' fees incurred in the Indemnified Party's <br />defense of any such third party claim. <br />6. NOTICE <br />Any notice, tender, demand, delivery, or other communication pursuant to this <br />Agreement shall be in writing and shall be deemed to be properly given if delivered in person or <br />mailed by first class or certified mail, postage prepaid, or sent by telefacsimile or other <br />telegraphic communication in the manner provided in this Section, to the following persons: <br />To City: Clerk of the City Council <br />