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01/07/2008 15:33 5038721900 UPRR SUPT PORT PAGE 06/D_aD <br /> passenger train that affects Railway's ab7ity to fuay u6rze its equipment and to meet <br /> customer service and Contract obligations. Contractor will be billed, as further provided <br /> below, for the economic losses arising from loss of use of equipment and trafi service <br /> employees contractual loss of incentive pay and bonuses, and contractual penalties <br /> resulting from train delays, whether caused by Contractor, or subcontractors, or by the <br /> . Railway pertorming Railway Work as required by the project. Railway agrees that it wiq not <br /> perform any act to unnecessarily cause train delay. <br /> . For loss of use, Contractor will be billed per freight train hour at an average rate of <br /> ($38x.33 in i99~ with annual adjustments per hour per train as determined from Railways <br /> record. Any disruption to train traffic may cause delays to multiple trains at the same time <br /> for the same period. <br /> In addition to the above damages, passenger, U.S. mail trains and certain other grain, <br /> intemtodal, coal and freight trains operate under inc:entiveJpenalty contracts between <br /> Railway and its customer. Under these arrangements, if Railway does not meet ifs ootftract <br /> service commitment, Railway may suffer loss of performance or incentive pay or be subject <br /> to a penalty payment. Contractor shall be responsible fiat any train pelfiormanoe and <br /> <br /> . incentive penalties or other contractual economic losses acfi.rally invurred by Rahway which <br /> arse attributable to a train delay caused by Contractor, yr subcontractors. <br /> As example, a train arrives 30 minutes 9fter its contract service a4mmitrnents and Railway <br /> . is assessed damages per terms of the contrail. Either Gontractor, and/or subcontractors, <br /> caused a 29 minute delay to the train and Therefore are not r+e~onsible for any train <br /> pertortnance and incentive penaties or other contractual economic lessee actually inouirned <br /> by Raifwway. <br /> As example, a train arrives 30 minutes after its contract service commitments and Raihnray <br /> . is assessed damages per tents of the contract. Either Contractor, and/or subcontractors, <br /> . caused a 31 minute delay to the train and there~Fore are 100~/a responsible far arty train <br /> performance and incentive penalties or ether contractual economic losses actually incurred <br /> by Railway. <br /> The contractual relationship between Railway and its customers is proprietary and <br /> . confidential. In the event of a train delay covered by this Agreement, Railway will share <br /> irrformatian relevant to any train delay to the maximum extent consistent with Railway <br /> confidentiality obligations. Damages for train delay for. certain trains could be as high as <br /> $50,000.00 per incident. <br /> Contractor and subcontractors shall plan, schedule, coordinate and conduct all Contractor's <br /> work so as to not cause any delays to any trains. <br /> ` <br /> ~.t <br /> Union Pacific Railroad Company P e 14 = ` <br /> (Exh~it C ~ C-1) ~ <br /> <br />