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Tracking No. 23W-19543 <br /> COMPENSATION <br /> 6. License Fee. Licensee shall pay Licensor, prior to the Effective Date, the sum of Two Thousand Two Hundred <br /> Fifty and No/100 Dollars ($2,250)as compensation for the use of the Premises. <br /> 7. Costs and Expenses. <br /> 7.1 For the purpose of this License, "cost" or"costs" and "expense" or"expenses" includes, but is not limited to, <br /> actual labor and material costs including all assignable additives, and material and supply costs at current <br /> value where used. <br /> 7.2 Licensee agrees to reimburse Licensor(pursuant to the terms of Section 8 below)for all costs and expenses <br /> incurred by Licensor in connection with Licensee's use of the Premises, including but not limited to the <br /> furnishing of Licensor's flaggers and any vehicle rental costs incurred. Licensee shall bear the cost of flagger <br /> services and other safety measures provided by Licensor, when deemed necessary by Licensor's <br /> representative. Flagging costs shall include, but not be limited to, the following: pay for at least an eight (8) <br /> hour basic day with time and one-half or double time for overtime, rest days and holidays (as applicable); <br /> vacation allowance; paid holidays (as applicable); railway and unemployment insurance; public liability and <br /> property damage insurance; health and welfare benefits; transportation; meals; lodging and supervision. <br /> Negotiations for railway labor or collective bargaining agreements and rate changes authorized by <br /> appropriate Federal authorities may increase flagging rates. Flagging rates in effect at the time of <br /> performance by the flaggers will be used to calculate the flagging costs pursuant to this Section 7. <br /> 8. Payment Terms. All invoices are due thirty (30) days after the date of invoice. If Licensee fails to pay any monies <br /> due to Licensor within thirty (30) days after the invoice date, then Licensee shall pay interest on such unpaid sum <br /> from the due date until paid at an annual rate equal to the lesser of (i) the prime rate last published in The Wall <br /> Street Journal in the preceding December plus two and one-half percent(2'/z%), or(ii)the maximum rate permitted <br /> by law. <br /> LICENSOR'S RESERVED RIGHTS <br /> 9. Reserved Rights of Use. Licensor excepts and reserves the right,to be exercised by Licensor and any other parties <br /> who may obtain written permission or authority from Licensor: <br /> 9.1 to maintain, use, operate, repair, replace, modify and relocate any utility, power or communication <br /> pipe/lines/cables and appurtenances and other facilities or structures of like character upon, over, under or <br /> across the Premises existing as of the Effective Date; <br /> 9.2 to construct, maintain, renew, use, operate, change, modify and relocate any tracks or additional facilities, <br /> structures and related appurtenances upon, over, under or across the Premises; or <br /> 9.3 to use the Premises in any manner as Licensor in its sole discretion deems appropriate, provided Licensor <br /> uses all commercially reasonable efforts to avoid material interference with the use of the Premises by <br /> Licensee for the purpose specified in Section 4 above. <br /> LICENSEE'S WORK <br /> 10. Construction and Maintenance. <br /> 10.1 Licensee shall notify Licensor's Roadmaster, Kevin Self at 720 South B Street, Stockton, CA 95205, <br /> telephone (209) 460-6340 or Kevin.Self@BNSF.com, and Licensor's Remediation Manager, Thomas <br /> Jones, telephone (915) 551-4591 (office) or (816) 605-3945 (cell), at least five (5) business days prior to <br /> entering the Premises. In the event of emergency, Licensee shall notify Licensor of Licensee's entry onto <br /> the Premises at the telephone number above as soon as practicable and shall promptly thereafter follow <br /> up with written notice of such entry. <br /> 10.2 Licensee's on-site supervisors shall retain/maintain a fully executed copy of this License at all times while <br /> on the Premises. <br /> 10.3 While on the Premises, Licensee shall use only public roadways to cross from one side of Licensor's tracks <br /> to the other. <br /> Form 427; Rev. 20140815 <br /> -2- <br />