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HomeMy WebLinkAboutContract 33861 CITY SECRETARY CONTRACT NO. Maintenance A reement This Maintenance Agreement (Agreement") is made by and between the City of Fort Worth ( "City"), a home-rule municipal corporation located in Tarrant, Denton, and Wise Counties, Texas, having its principal office at 1000 Throckmorton, Fort Worth, Texas, and Quality Signal Construction, LLC, ("QSC"), a licensed Texas corporation, having its principal office at 3602 N. Sylvania Ave., Fort Worth, TX 76111, with reference to the following facts: A. On February 2, 2005 the City entered into an agreement with the Fort Worth and Western Railroad Company ("Railroad") whereby the Railroad granted the City an at-grade crossing at Museum Way and the City agreed to install and maintain the crossing and install and maintain warning signal devices to implement the Museum Way crossing and at the W. 7 h Crossing install and maintain warning signal devices, and at both crossings install and maintain "quiet zones" as that term is defined and regulated by Federal Railroad Administration. B. To fullfill its obligations under its agreement with the Railroad, the City seeks an independent contractor knowledgable in the maintenance of Warning, Signal Devices and Quiet Zone Devices. 1. Services to be provided by Contractor 1.1 Contractor agrees to maintain the at-grade crossings at Museum Way and W.7t' Street, including highway-rail grade crossing warning systems and quiet-zone equipment once installed, as follows: Crossing signals - all testing, cleaning, painting, replacement of broken reflectors and lenses, signal, lamp replacement, bonding, primary battery replacement, storage battery maintenance, light alignment, bell maintenance, relay inspection and testing, cable inspection and testing, gate arm inspection, gate mechanism inspection, troubleshooting, ground test circuits, exit gate management system with integrated active vehicle detection, backup wayside horn system, and quiet zone confirmation signals. All such work shall be performed in accordance with 49CFR, Chapter II, Federal Railroad Administration(FRA). 1.2 Contractor's maintenance services shall conform to all applicable federal, state and local standards, including the testing and inspection by contractor of all such grade- crossing warning devices at thirty-day intervals, and shall include all tests and inspections as required by 49 CFR Chapter II, part 234 G grade-crossing signal-system safety and Part 236, Rules, standards and Instruction governing the installation, inspection, maintenance, and repair of signal and train control systems, devices, and appliances. t1 1� .d✓ Ell Ulf These requirements shall include tests on cables and relays. All cables and relays that fail to meet FRA standards will be repaired or replaced by contractor. 1.3 If any piece of equipment to be maintained by Contractor is damaged or destroyed, Contractor shall promptly repair such equipment. However, if the cost of such repair exceeds $500, and if the condition of the crossing warning signal system presents an immediate danger to the traveling public, Contractor shall take the followings steps in order: A. Promptly initiate efforts to warn highway users and railroad employees at the subject crossing as directed by 49 CFR Chapter II, part 234. Continue such efforts until appropriate repairs have been made and the crossing warning system is functioning properly. B. Notify City immediately. C. Make a reasonable attempt to thoroughly diagnose and repair equipment before replacement of costly signal system components. D. Upon receiving direction from City concerning cost to make repairs, make such repairs in a timely manner. E. Notify City and FWWR that crossing warning system is functioning properly. 1.4 During the term of this Agreement, Contractor shall prepare and file with the appropriate government agencies all documentation required by such agencies in connection with the Signal and Crossing Systems. All FRA required forms shall be kept at Contractor's office at 3602 N. Sylvania Avenue, Fort Worth, TX 76111 with a copy of all reports forwarded to the City within 10 days after the form is completed. 1.5 Contractor shall provide sufficient personnel and supplies in order for the services required pursuant to this Agreement to be performed 24 hours per day, 365 days per year. Contractor shall provide the City, the Railroad, and the Fort Worth Police Department the telephone number and such other contact information as may be requested in order that communication with Contractor can be maintained 24 hours per day. 2. Monthly Service Charges,Maintenance Materials and Supplies; Billing 2.1 Contractor shall furnish all maintenance materials and supplies consumed by Contractor in providing the maintenance services describe in the Agreement, whether such services are provided in response to damaged grade crossings, acts of God, or testing of cables and relays. Contractor shall provide the following materials with no mark-up: bonds, track connections, lenses, reflectors, signal bulbs, arrestors, fuses, and shear pins. All other consumable materials required by Contractor in rendering the maintenance services required hereunder will be billed at cost plus 10% handling charge. RAILROAD MAINTENANCE AGREEMENT Page 2 of 8 In addition to the materials cost, if any, Contractor shall bill City for labor and shipping. All services, including materials, labor, and shipping shall be billed without tax. 2.2 Contractor shall submit invoices to City together with necessary supporting documents to substantiate the materials consumed and labor provided. City shall remit payment of invoices within 30 days from the date that the invoice is received. 2.3 Contractor shall end monthly billing statements, as formulated below, to the City on the 1st business day of each month, for services provided during the previous month, commencing with the 1st day of the first month following the execution of this Agreement. The City shall pay such monthly bills in full within 30 days from the date the invoice is received. 2.4 The monthly compensation fees for the services to be performed by Contractor shall be as follows: Highway-Rail Grade Crossing Warning System Maintenance: 1St Year 2nd Year 3rd Year $/month $/month $/month FWWR& Museum Way $500.00 $515.00 $530.45 FWWR& W 7th Street $800.00 $824.00 $848.72 Quiet Zone Device Maintenance FWWR& Museum Way $150.00 $154.50 $159.14 FWWR& W 7th Street $150.00 $154.50 $159.14 TOTAL/YEAR $1600.00 $1648.00 $1697.45 3. Insurance Requirements 3.1 At its own expense and during the term of this Agreement, Contractor shall maintain the following insurance: (a) Workers' Compensation Insurance providing Statutory Benefits under the Workers' Compensation Act of the State of Texas and/or any other state or Federal Law of Laws applicable to the contractor's employees performing the work under this instrument, and Employer's Liability Insurance of not less than $500,000 each accident, $500,000 each employee for disease and $500,000 limit for disease. (b) Comprehensive Automotive Liability Insurance providing limits to be not less than $2,000,000 per occurrence for bodily injury and property damage and $2,000,000 in the aggregate for all occurrences. If any part of the RAILROAD MAINTENANCE AGREEMENT Page 3 of 8 work is sublet, similar insurance shall be provided by or on behalf of the subcontractor(s)to cover their operations. (c) Comprehensive General Liability Insurance providing limits to be not less than $2,000,000 per occurrence for bodily injury and property damage and $2,000,000 in the aggregate for all occurrences. If any part of the work is sublet, similar insurance shall be provided by or on behalf of the subcontractor(s)to cover their operations. (d) Contractors' Protective Liability Insurance providing limits to be not less than $2,000,000 per occurrence for bodily injury and property damage and $2,000,000 in the aggregate for all occurrences. If any part of the work is sublet, similar insurance shall be provided by or on behalf of the subcontractor(s)to cover their operations. (e) Railroad Protective Liability Insurance (which includes Bodily Injury, Property Damage and Physical Damage Insurance) providing limits to be not less than $2,000,000 per occurrence for bodily injury and property damage and$6,000,000 in the aggregate for all occurrences. If any part of the work is sublet, similar insurance shall be provided by or on behalf of the subcontractor(s)to cover their operations. Fort Worth and Western Railroad Insurance Requirements In additional to the insurance requirements for the City of Fort Worth, the Contractor is required to execute the attached"Right of Entry Agreement" with the Fort Worth and Western Railroad(see Exhibit A). This agreement contains any additional insurance requirements for the railroad. 3.2 Contractor shall comply with the following additional insurance requirements: a. All policies required hereunder shall be written on an"occurrence basis." b. The City and the Railroad, their officers, employees and servants shall be endorsed as an additional insured on Contractor's insurance policies excepting employer's liability insurance coverage under Contractor's workers' compensation insurance policy. b. Certificates of insurance shall be delivered to the City of Fort Worth, Transportation and Public Works Department, 1000 Throckmorton Street, Fort Worth, TX 76102, before beginning any services required under this Agreement. RAILROAD MAINTENANCE AGREEMENT Page 4 of 8 C. Any failure on part of the City to request required insurance documentation shall not constitute a waiver of the insurance requirements specified herein. d. Each insurance policy shall be endorsed to provide the City a minimum thirty days notice of cancellation, non-renewal, and/or material change in policy terms or coverage. A ten days notice shall be acceptable in the event of non- payment of premium. e. Insurers must be authorized to do business in the State of Texas and have a current A.M. Best rating of A: VII or an equivalent measure of financial strength and solvency. f. Deductible limits, or self-funded retention limits, on each policy must not exceed $10,000.00 per occurrence unless otherwise approved by the City. g. Other than worker's compensation insurance, and in lieu of traditional insurance, the City may consider alternative coverage or risk treatment measures through insurance pools or risk retention groups. The City must approve in writing any alternative coverage. h. All insurance policies required hereunder shall include a waiver of subrogation providing rights of recovery in favor of the City and the Railroad. i. City shall not be responsible for the direct payment of insurance premium costs for Contractor's insurance. j. Contractor's insurance policies shall each be endorsed to provide that such insurance is primary protection and any self-funded or commercial coverage maintained by City shall not be called upon to contribute to loss recovery. k. In the course of services being provided under this Agreement, Contractor shall report, in a timely manner, to City's officially designated contract administrator any known loss occurrence that could give rise to a liability claim or lawsuit or that could result in a property loss. 1. Contractor's liability shall not be limited to the specified amounts of insurance required herein. M. Upon the City's request,Contractor shall provide complete copies of all insurance policies required by these contract documents. n. Subcontractors shall be deemed agents of Contractor and are subject to the terms hereof. o. RAILROAD MAINTENANCE AGREEMENTI--II 9 R Page 5 of 8 �o '::`J 1-Cn a. 3.3 Fort Worth and Western Railroad Insurance Requirements In addition to the City of Fort Worth insurance requirements listed above, the Contractor is required to satisfy the requirements of and execute the attached "Right of Entry Agreement" with the Fort Worth and Western Railroad (see Exhibit A). The Right of Entry Agreement contains the railroad's insurance requirements. 4. Termination 4.1 This Agreement may be terminated by Contractor upon thirty-days written notice to the City for any of the following: (a) City's bankruptcy, insolvency, or assignment for the benefit of creditors; (b) City's failure to pay any amounts owed Contractor under the terms of this Agreement, and such default continues for fifteen days after the date the payment was due. 4.2 This Agreement may be terminated by the City upon thirty-days written notice to Contractor if Contractor fails to perform reasonably satisfactorily under the terms and conditions of this Agreement, and City has given Contractor written notice itemizing the defects or deficiencies of Contractor 's performance and has given Contractor 45 days in which to cure the defects or deficiencies. 4.3 This Agreement may be terminated by the City for convenience and without cause upon 10 days written notice. 5. Indemnification Contractor also covenants and agrees to, and by these presents does hereby, fully indemnify, hold harmless and defend the City, its officers, agents and employees from all suits, actions or claims of any character, whether real or asserted, brought for or on account of any injuries or damages sustained by any persons (including death) or to any property, resulting from or in connection with the construction, design, performance or completion of any work to be performed by said Contractor, its contractors, subcontractors, officers, agents or employees, or in consequence of any failure to properly safeguard the work or on account of any act, intentional or otherwise, neglect or misconduct of said Contractor, its contractors, sub-contractors, officers, agents or employees, even if such injuries, death, or damages are caused, in whole or in part, by the alleged negligence of the CUP, its officers, servants, or emnloyees. It is understood that the foregoing is not intended to cover matters in which the City, its officers, employees or agents have been found to be negligent or grossly nezheent or to have committed malfeasance. RAILROAD MAINTENANCE AGREEMENT Page 6 of 8 6. Term This Agreement shall remain in full force and effect for a period of one year for the services to be rendered by Contractor hereunder. This Agreement shall renew for two additional one year periods. 7. Miscellaneous 7.1 Drug Testing. Contractor shall comply with FRA's drug and alcohol testing program. 7.2 BindingEffect.ffect. This Agreement shall inure to the benefit of and be binding upon the parties hereto and their respective successors, assigns, personal representatives, and heirs. No party, however, may assign this Agreement, or any portion thereof, to any person without the prior written consent, not to be unreasonably withheld, of the other party. 7.3 Governing Law. The provisions of this Agreement shall be governed by and construed in accordance with the laws of the State of Texas. Venue shall lie exclusively in any court of competent jurisdiction located in Tarrant County, Texas. 7.4 Notices. "Notice," except in Section 1.4, means a written notice required or permitted under this Agreement. For non-emergency notice, a notice shall be deemed given or sent when deposited, as certified mail or for overnight delivery, postage and fees prepaid, in the United States mails; when delivered to Federal Express, United Parcel Service, DHL Worldwide Express, or Airborne Express, for overnight delivery, charges prepaid or charged to the sender's account; when personally delivered to the recipient; when transmitted by electronically confirmed as having been successfully transmitted; or when delivered to the home or office of a recipient in the care of a person whom the sender has reason to believe will promptly communicate the notice to the recipient. Emergency notice may be given to the individuals listed below and such notice may be given by e-mail or facsimile with confirmation of delivery by return e-mail or telephone call. If to Fort Worth: Mr. Russell Wiles Department of Transportation and Public Works 1000 Throckmorton Fort Worth, Texas 76102 Russell.wilesAfortworth og v.org Telephone 817-392-7978 Facsimile 817-392-2433 Page RAILROAD MAINTENANCE AGREEMENT 1 TI ,f�b e 7 If to Contractor: Jim Leimbacher, General Manager Quality Signal Construction 3602 N. Sylvania Ave. Fort Worth, TX 76111 jleimbachernaegualitysignal.com Telephone: 817-834-0665 Facsimile: 817-546-0707 7.5 Entire Agreement. This Agreement constitutes the entire agreement among the parties regarding the subject matter of this Agreement, and no previous statement, promise, agreement, inducement or representation, whether oral or written, shall be of any further force or effect unless expressly set forth herein. All parties acknowledge and agree that they have been advised of and had the opportunity to seek the advice of counsel of their own choosing regarding the terms of this Agreement and the advisability of executing it. All parties acknowledge and agree that they have each fully read and understood the terms of this Agreement. Should any part of this Agreement be held by a court of competent jurisdiction to be unenforceable or invalid, the remaining portions of this Agreement shall remain in full force and effect. In witness hereof, the following parties hereto have executed this Agreement on U of , 2006. Approval Recommended: City of Fort Worth By: Robert Goode, P. E., Director Marc Aatt Transportation and Public Works Assistant City Manager ATTEST: Approved as to Form and Legality: Marty Hendrix Amy am City Secretary Assistan ity Attorney i ATTEST: Contractor: By Bernard Bunney, Presid t RAILROAD MAINTENANCE AGREEMENT Page 8 of 8 1-(117!1 ^riyll'li�II JL� Yi.J J`.0 EXAMPLE RIGHT OF ENTRY AGREEMENT THIS AGREEMENT, dated , is made by and between FORT WORTH & WESTERN RAILROAD COMPANY located at 6300 Ridglea Place, Suite 1200, Fort Worth, Texas 76116 (hereinafter "FWWR"), and (hereinafter "Contractor"). Subject to the provisions hereof and pursuant to the Permanent Public Street Crossing, Sanitary Sewer and Railroad Warning and Safety Devices Easement between the Fort Worth & Western Railroad Company and the City of Fort Worth, FWWR hereby grants to Contractor right of entry to maintain and repair the grade crossing warning systems located at 7th Street and Museum Way, Fort Worth, Tarrant County, Texas (hereinafter "Premises"). Subcontractors shall be deemed agents of Contractor and are subject to the terms of this Agreement. Contractor shall: 1. Perform that portion of the work in accordance with plans and specifications approved in advance by FWWR and in such manner and at such times as shall not endanger or interfere with FWWR and its representatives. 2. Notify FWWR at least seventy-two (72) hours before commencing work on FWWR premises for safety purposes and coordination of maintenance and repair with FWWR's signal contractor, Quality Signal Construction, Inc. 3. Keep all equipment, tools and materials stored at lease 25 feet from the center line of any operable track. Explosives or other highly inflammable substances or any hazardous materials regulated pursuant to federal or state regulation will not be stored on Premises. 4. Remove all of Contractor's tools, equipment and materials from premises promptly upon completion of work, restoring premises to the same state and condition as when Contractor entered thereon. 5. Reimburse FWWR for all costs and expense incurred by FWWR in connection with said work, including without limitation the expense of furnishing such inspectors, watchmen and flagmen as FWWR deems necessary, the installation and removal of false work and restoration of FWWR's property to the same condition as when Contractor entered thereon. 'J�2 6. Contractor and subcontractors hereby agree, in the conduct of its operations hereunder, to abide by and comply with all applicable laws, statutes, rules and regulations of any federal, state or municipal authority, or any other public body having jurisdiction, including, without limitation, laws, ordinances and governmental regulations controlling air, water, noise, solid wastes and other pollution, and environmental damages, and to file all reports or statements required in connection with the conduct of its business. Contractor and subcontractors shall and does hereby indemnify and hold harmless FWWR from any and all loss, cost or expense whatsoever, incurred by reason of any violation of such rules and regulations. 7. RISK ALLOCATION AND INDEMNITY (A) FOR PURPOSES OF ITEM 7, THE "COMPANY GROUP" SHALL BE COMPRISED OF: (1) FORT WORTH & WESTERN RAILROAD COMPANY, ITS PARENT COMPANIES, ITS SUBSIDIARY COMPANIES, ITS AFFILIATE COMPANIES, AND ITS RESPECTIVE DIRECTORS, OFFICERS, EMPLOYEES, SERVANTS, AGENTS, REPRESENTATIVES AND INVITEES; AND (II) OTHER CONTRACTORS, OTHER THAN CONTRACTOR HIRED BY FWWR AND THEIR RESPECTIVE DIRECTORS, OFFICERS, EMPLOYEES, SERVANTS, AGENTS, REPRESENTATIVES AND INVITEES. (B) FOR PURPOSES OF THIS ITEM 7, THE "CONTRACTOR GROUP" SHALL BE COMPRISED OF: (1) CONTRACTOR, ITS AFFILIATE COMPANIES, AND THEIR RESPECTIVE DIRECTORS, OFFICERS, EMPLOYEES, SERVANTS, AGENTS, REPRESENTATIVES AND INVITEES; AND (II) ANY CONTRACTOR HIRED BY CONTRACTOR WITH THE CONSENT OF FWWR AND THEIR RESPECTIVE DIRECTORS, OFFICERS, EMPLOYEES, SERVANTS, AGENTS, REPRESENTATIVES AND INVITEES OF SUCH CONTRACTOR. (C) CONTRACTOR AGREES TO PROTECT, DEFEND, INDEMNIFY AND HOLD COMPANY GROUP HARMLESS FROM AND AGAINST ANY AND ALL CLAIMS, DEMANDS, AND CAUSES OF ACTION OF EVERY KIND AND CHARACTER ARISING OUT OF OR RESULTING FROM THE WORK OR SERVICES THAT ARE THE SUBJECT MATTER OF THIS AGREEMENT, ON ACCOUNT OF PERSONAL OR BODILY INJURY, ILLNESS, OR DEATH OF ANY PERSON OR DAMAGE TO OR LOSS OF ANY PROPERTY, REGARDLESS OF WHO MAY BE AT FAULT OR OTHERWISE RESPONSIBLE UNDER ANY CONTRACT, STATUTE, RULE OR THEORY OF LAW, EVEN THOUGH THE SUBJECT LOSS, DAMAGE, INJURY, ILLNESS OR DEATH MAY HAVE BEEN CAUSED OR BROUGHT ABOUT IN WHOLE OR IN PART BY (a) THE SOLE, CONCURRENT, ACTIVE, PASSIVE, PRIMARY OR SECONDARY NEGLIGENCE OF ANY PARTY, INCLUDING WITHOUT LIMITATION THE COMPANY GROUP OR THE CONTRACTOR GROUP, (b) THE STRICT LIABILITY, STRICT PRODUCTS LIABILITY, BREACHES OF EXPRESS OR IMPLIED WARRANTIES, AND/OR THE LEGAL FAULT OF ANY PARTY, INCLUDING WITHOUT LIMITATION THE COMPANY GROUP OR THE CONTRACTOR GROUP, AND (c) ANY DEFECT OF ANY PROPERTY OR EQUIPMENT OF ANY PARTY, INCLUDING, WITHOUT LIMITATION COMPANY GROUP OR THE CONTRACTOR GROUP AND INCLUDING ANY DEFECTS PREEXISTING THE DATE OF THIS AGREEMENT. (D) CONTRACTOR HEREBY ACKNOWLEDGES AND AGREES THAT IT HAS READ THIS AGREEMENT IN ITS ENTIRETY, THAT IT IS FULLY INFORMED AND HAS FULL NOTICE AND KNOWLEDGE OF ALL TERMS, CONDITIONS AND EFFECTS OF THIS AGREEMENT, THAT IT HAS HAD AN OPPORTUNITY TO CONSULT OR HAS BEEN REPRESENTED BY LEGAL COUNSEL OF ITS CHOICE PRECEDING THE EXECUTION OF THIS AGREEMENT, AND THAT IT RECOGNIZES THAT CERTAIN OF THE TERMS OF THIS AGREEMENT, INCLUDING WITHOUT LIMITATION, THE TERMS OF ITEMS 7.A AND 7.C, RESULT IN CONTRACTOR GOUP ASSUMING CERTAIN LIABILITIES WITH RESPECT TO CERTAIN WORK OR SERVICES AND RELIEVING COMPANY GROUP OF ITS RESPONSIBILITY FOR SUCH LIABILITY. CONTRACTOR AGREES THAT IT WILL NOT CONTEST THE VALIDITY OR ENFORCEABILITY OF ANY INDEMNITY OR EXCULPATORY PROVISION OF THIS AGREEMENT INCLUDING, WITHOUT LIMITATION, ON THE BASIS THAT CONTRACTOR HAD NO NOTICE OR KNOWLEDGE OF SUCH PROVISION OR THAT THE PROVISION WAS NOT "CONSPICUOUS". (E) FWWR WILL NOTIFY CONTRACTOR OF ANY CLAIM, DEMAND OR SUIT THAT MAY BE PRESENTED TO OR SERVED UPON IT BY ANY PERSON ARISING OUT OF OR RESULTING FROM THE WORK OR SERVICES THAT ARE SUBJECT MATTER OF THIS AGREEMENT, AFFORDING CONTRACTOR AN OPPORTUNITY TO ASSUME THE DEFENSE OF SUCH CLAIM. 8. PERSONAL PROPERTY WAIVER — ALL PERSONAL PROPERTY, INCLUDING, BUT NOT LIMITED TO, FIXTURES, EQUIPMENT, OR RELATED MATERIALS UPON THE PREMISES WILL BE AT THE RISK OF CONTRACTOR ONLY, AND FWWR SHALL NOT BE LIABLE FOR ANY DAMAGE THERETO OR THEFT THEREOF, WHETHER OR NOT DUE IN WHOLE OR IN PART TO THE NEGLIGENCE OF FWWR. 9. Insurance — (a) Contractor shall provide, at Contractor's expense, with an insurance company or companies authorized to do business in the states where the work or services are to be performed, insurance coverage in the kind and in the amounts as follows: (i) Workers' Compensation Insurance in full compliance with all applicable state and federal laws and regulations and Employers' Liability Insurance on an occurrence basis of $1,000,000 per occurrence covering injury, illness, or death to any employee or leased employee and including a borrowed servant/alternate employer endorsement. (ii) Commercial General Liability Insurance on ISO Form CG 00 01 0196 or subsequent form and on an occurrence basis, with limits of $1,000,000 for bodily injury, sickness or death in any one occurrence, $1,000,000 for loss or damage to property in any one occurrence, $1,000,000 for personal and advertising injury in any one occurrence, and $2,000,000 general and products/completed operations aggregates, with blanket contractual liability, including, without limitation, coverage for the indemnity agreements set forth in Item 7 of this Agreement, and with a pollution liability coverage extension endorsement on ISO Form CG 04 22 11 85. (iii) Automobile Liability Insurance on ISO Form CA 00 01 07 97 and on an occurrence basis covering owned, non-owned, specifically described, hired and all other vehicles used by Contractor, with limits of $1,000,000 applicable to bodily injury, illness or death in any one occurrence and $1,000,000 for any loss or damage to property in any once occurrence, with blanket contractual liability, including, without limitation, coverage for the indemnity agreements set forth in Item 7 of this Agreement, and with broadened pollution liability coverage on ISO Form CA 99 48 12 93. (b) Umbrella or Excess Liability Insurance on a follow form, afford no less coverage than the primary policy and on an occurrence basis over that insurance coverage required in subsections (i), (ii) and (iii) above, with limits of $10,000,000. (c) The policies of insurance noted above shall be endorsed to waive all rights of subrogation in favor of FWWR for all claims, demands, and causes of action of every kind and character arising out of or resulting from the work or services that are the subject matter of this Agreement. The policies of insurance noted above contain no exclusion with respect to property of FWWR in the care, custody or control of Contractor. The exclusions for railroads (except where the Premises are more than fifty feet (50') from any railroad including but not limited to tracks, bridges, trestles, roadbeds, terminals, underpasses or crossings), and explosion, collapse and underground hazard shall be specifically deleted from all policies of insurance noted above. 1Z r 0 Db o 0, a Inti uk Ct (d) All policies of insurance noted above, with the exception of Workers' Compensation Insurance and Employer's Liability Insurance, shall be endorsed to name FWWR as blanket additional insured for all claims, demands and causes of action of every kind and character arising out of or resulting from the work or services that are the subject matter of this Agreement. The obligation to name FWWR as an additional insured shall be separate and independent from the indemnity obligations set forth in Item 7. FWWR shall be entitled to status as an additional insured even if the indemnity provisions in Item 7 are unenforceable. (e) All such insurance required shall be issued by American insurance companies rated by A.M. Best Company as B+1X or higher or by Underwriters at Lloyds of London or at the Institute of London Underwriters Companies, and shall not be canceled or materially amended or changed without 30 days prior written notice having first been furnished to FWWR. (f) All policies of insurance, except Workers' Compensation and Employers' Liability Insurance, shall be endorsed to provide that all such insurance shall be primary and non-contributing with any other insurance maintained by FWWR regarding all claims, demands and causes of action of every kind and character arising out of or resulting from the work or services that are the subject matter of this Agreement. (g) Prior to commencement of the work or services, Contractor shall deliver to FWWR a Certificate of Insurance, certifying the existence and limits of the insurance coverages stated above and noting the applicable endorsements described above. The policy(ies) shall contain a provision that obligates the insurance company(ies) issuing such policy(ies) to notify FWWR in writing at least 30 days prior to any cancellation, non-renewal, substitution or material alteration. This cancellation provision shall be indicated on the certificate of insurance. Upon request from FWWR, a certified duplicate original of any required policy shall be furnished. h. All notices and certificates shall be mailed to Fort Worth & Western Railroad, 6300 Ridglea Place, Suite 1200, Fort Worth, Texas 76116. i. FWWR may reasonably modify the required insurance coverage to reflect future risk management practices in the railroad industry and underwriting practices in the insurance industry. j. If any portion of the operation is to be subcontracted by Contractor, subcontractors shall be insured under Contractor's insurance coverage providing and maintaining insurance coverages as set forth herein, naming FWWR as an additional insured, and shall require that the subcontractor shall release, defend and indemnify FWWR to the same extent and under the same terms and conditions as Contractor is required to release, defend and indemnify FWWR herein. k. Failure to provide evidence as required by this Item 9 shall entitle, but not require, FWWR to terminate this Agreement immediately. Acceptance of a certificate that does not comply with this section shall not operate as a waiver of Contractor's obligations hereunder. I. The fact that insurance (including, without limitation, self-insurance) is obtained by Contractor shall not be deemed to release or diminish the liability of Contractor including, without limitation, liability under the indemnity provisions of this Agreement. Damages recoverable by FWWR shall not be limited by the amount of the required insurance coverage. (m) Contractor WARRANTS that this Agreement has been thoroughly reviewed by Contractor's insurance agent(s)/broker(s), who have been instructed by Contractor to procure the insurance coverage required by this Agreement and acknowledges that Contractor's insurance coverage will be primary. 10. It is further agreed that the execution of this Agreement shall not constitute a waiver by FWWR, with respect to third party claims asserted against Contractor and/or its subcontractors, of any defense allowed by law. 11. Neither termination nor expiration will release either party from any liability or obligation under this Agreement, whether of indemnity or otherwise, resulting from any acts, omissions or events happening prior to the date of termination or expiration. 12. All questions concerning the interpretation or application of provisions of this Agreement shall be decided according to the substantive laws of the State of Texas without regard to conflicts of law. 13. To the maximum extent possible, each provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement shall be prohibited by, or held to be invalid under, applicable law, such provision shall be ineffective solely to the extent of such prohibition or invalidity, and this shall not invalidate the remainder of such provision or any other provision of this Agreement. 14. In the event that Contractor consists of two or more parties, all the covenants and agreements of Contractor herein contained shall be the joint and several covenants and agreements of such parties. 15. The waiver by FWWR of the breach of any provision herein by Contractor shall in no way impair the right of FWWR to enforce that provision for any subsequent breach thereof. OP141VI-h-11,1 ENO IN WITNESS WHEREOF, the parties hereto have caused these presents to be executed in duplicate the first day and year first above written. CONTRACTOR: FWWR: FORT WORTH &WESTERN RAILROAD By: By: Printed Name: Jim M. Martin Title: President & COO