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EXHIBIT 2 <br />paid for overtime, Saturdays and Sundays, and two and one-half times current hourly rate for holidays. Wage <br />rates are subject to change, at any time, by law or by agreement between Railroad and its employees, and may <br />be retroactive as a result of negotiations or a ruling of an authorized governmental agency. Additional charges <br />on labor are also subject to change. If the wage rate or additional charges are changed, Contractor (or the <br />governmental entity, as applicable) shall pay on the basis of the new rates and charges. If flagging is performed <br />by Railroad, reimbursement to Railroad will be required covering the full eight -hour day during which any flagman <br />is furnished, unless the flagman can be assigned to other Railroad work during a portion of such day, in which <br />event reimbursement will not be required for the portion of the day during which the flagman is engaged in other <br />Railroad work. Reimbursement will also be required for any day not actually worked by the flagman following the <br />flagman's assignment to work on the project for which Railroad is required to pay the flagman and which could <br />not reasonably be avoided by Railroad by assignment of such flagman to other work, even though Contractor <br />may not be working during such time. When it becomes necessary for Railroad to bulletin and assign an employee <br />to a flagging position in compliance with union collective bargaining agreements, Contractor must provide <br />Railroad a minimum of five (5) days notice prior to the cessation of the need for a flagman. If five (5) days notice <br />of cessation is not given, Contractor will still be required to pay flagging charges for the five (5) day notice period <br />required by union agreement to be given to the employee, even though flagging is not required for that period. <br />An additional thirty (30) days notice must then be given to Railroad if flagging services are needed again after <br />such five-day cessation notice has been given to Railroad. <br />Section 2. LIMITATION AND SUBORDINATION OF RIGHTS GRANTED <br />A. The foregoing grant of right is subject and subordinate to the prior and continuing right and <br />obligation of the Railroad to use and maintain its entire property including the right and power of Railroad to <br />construct, maintain, repair, renew, use, operate, change, modify or relocate railroad tracks, roadways, signal, <br />communication, fiber optics, or other wirelines, pipelines and other facilities upon, along or across any or all parts <br />of its property, all or any of which may be freely done at any time or times by Railroad without liability to Contractor <br />or to any other party for compensation or damages. <br />B. The foregoing grant is also subject to all outstanding superior rights (whether recorded or <br />unrecorded and including those in favor of licensees and lessees of Railroad's property, and others) and the <br />right of Railroad to renew and extend the same, and is made without covenant of title or for quiet enjoyment. <br />Section 3. NO INTERFERENCE WITH OPERATIONS OF RAILROAD AND ITS TENANTS. <br />A. Contractor shall conduct its operations so as not to interfere with the continuous and uninterrupted <br />use and operation of the railroad tracks and property of Railroad, including without limitation, the operations of <br />Railroad's lessees, licensees or others, unless specifically authorized in advance by the Railroad Representative. <br />Nothing shall be done or permitted to be done by Contractor at any time that would in any manner impair the <br />safety of such operations. When not in use, Contractor's machinery and materials shall be kept at least twenty- <br />five (25) feet from the centerline of Railroad's nearest track, and there shall be no vehicular crossings of Railroads <br />tracks except at existing open public crossings. <br />B. Operations of Railroad and work performed by Railroad personnel and delays in the Work to be <br />performed by Contractor caused by such railroad operations and Work are expected by Contractor, and <br />Contractor agrees that Railroad shall have no liability to Contractor, or any other person or entity for any such <br />delays. The Contractor shall coordinate its activities with those of Railroad and third parties so as to avoid <br />interference with railroad operations. The safe operation of Railroad train movements and other activities by <br />Railroad takes precedence over any Work to be performed by Contractor. <br />2 <br />