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Section 7. LICENSEE'S PAYMENT OF EXPENSES.
<br />A. Licensee shall bear the entire cost and expense of the design, construction,
<br />maintenance, modification, reconstruction, repair, renewal, revision, relocation, or removal of
<br />Licensee's Facilities.
<br />B. Licensee shall fully pay for all materials joined, affixed to and labor performed on
<br />Railroad Property in connection with the construction, maintenance, modification, reconstruction,
<br />repair, renewal, revision, relocation, or removal of Licensee's Facilities, and shall not permit or suffer
<br />any mechanic's or materialman's lien of any kind or nature to be enforced against the property for any
<br />work done or materials furnished thereon at the instance or request or on behalf of Licensee. Licensee
<br />shall promptly pay or discharge all taxes, charges, and assessments levied upon, in respect to, or on
<br />account of Licensee's Facilities, to prevent the same from becoming a charge or lien upon any property
<br />of Licensor, and so that the taxes, charges, and assessments levied upon or in respect to such property
<br />shall not be increased because of the location, construction, or maintenance of Licensee's Facilities or
<br />any improvement, appliance, or fixture connected therewith placed upon such property, or on account
<br />of Licensee's interest therein. Where such tax, charge, or assessment may not be separately made or
<br />assessed to Licensee but shall be included in the assessment of the property of Licensor, then Licensee
<br />shall pay to Licensor an equitable proportion of such taxes determined by the value of Licensee's
<br />property upon property of Licensor as compared with the entire value of such property.
<br />C. As set forth in the "FLAGGING" Section of this Exhibit B, Licensor shall have the
<br />right, if it so elects, to provide any Safety Measures Licensor deems necessary for the safety of
<br />Licensor's operations and trackage during Licensee's or its contractor's construction, maintenance,
<br />modification, reconstruction, repair, renewal, revision, relocation, or removal of Licensee's Facilities,
<br />including, but not limited to supervision, inspection, and flagging services. In the event Licensor
<br />provides such Safety Measures, Licensor shall submit an itemized invoice to Licensee's notice recipient
<br />listed in the "NOTICES" Article of this Agreement. Licensee shall pay to Licensor the total amount
<br />listed on such invoice within thirty (30) days of Licensee's receipt of such invoice.
<br />Section 8. MODIFICATIONS TO LICENSEE'S FACILITIES.
<br />A. This grant is subject to Licensor's safe and efficient operation of its railroad, and
<br />continued use and improvement of Railroad Property (collectively, "Railroad's Use"). Accordingly,
<br />Licensee shall, at its sole cost and expense, modify, reconstruct, repair, renew, revise, relocate, or
<br />remove (individually, "Modification", or collectively, "Modifications") all or any portion of Licensee's
<br />Facilities as Licensor may designate or identify, in its sole discretion, in the furtherance of Railroad's
<br />Use.
<br />B. Upon any Modification of all or any portion of Licensee's Facilities to another location
<br />on Railroad Property, Licensor and Licensee shall execute a Supplemental Agreement to this Pipeline
<br />Agreement to document the Modification(s) to Licensee's Facilities on Railroad Property. If the
<br />Modifications result in Licensee's Facilities moving off of Railroad Property, this Agreement will
<br />terminate upon Licensee's completion of such Modification(s) and all requirements contained within
<br />the "TERMINATION; REMOVAL OF LICENSEE'S FACILITIES" Section of this Exhibit B. Any
<br />such Modification(s) off of Railroad Property will not release Licensee from any liability or other
<br />obligation of Licensee arising prior to and upon completion of any such Modifications to the Licensee's
<br />Facilities.
<br />Section 9. RESTORATION OF RAILROAD PROPERTY.
<br />In the event Licensee, in any manner moves or disturbs any property of Licensor in connection
<br />with the construction, maintenance, modification, reconstruction, repair, renewal, revision, relocation,
<br />or removal of Licensee's Facilities, then, Licensee shall, as soon as possible and at Licensee's sole cost
<br />Union Pacific Railroad Real Estate 1400 Douglas Street Stop 1690 Omaha, Nebraska 68179-1690 N. (402) 501-0340
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