# Joint Appendix Vol II — Lebron v. National Railroad Passenger Corporation

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## Record

- **Collection:** Supreme Court brief
- **Document type:** Joint Appendix Vol II
- **Published:** January 1, 1995
- **Citation:** 513 U.S. 374

## Text

BEST AVAILABLE COPY

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% No. 93-1525 |

JUL 25 1994

AWE Of MME CLES
Supreme Court of the nt tates

OCTOBER TERM, 1994

IN THE

>

MICHAEL A. LEBRON,

Petitioner,

—V —

NATIONAL RAILROAD PASSENGER CORPORATION (AMTRAK),

Respondent.

ON WRIT OF CERTIORARI TO THE UNITED STATES COURT OF APPEALS
FOR THE SECOND CIRCUIT

JOINT APPENDIX
EXHIBITS
(Pages J.A. 200 to 748)

DAVID D. COLE KEVIN T. BAINE
Counsel of Record Counsel of Record

CENTER FOR CONSTITUTIONAL RIGHTS NICOLE K. SELIGMAN

Georgetown University Law Center STEVEN M. FARINA

600 New Jersey Avenue, N.W. WILLIAMS & CONNOLLY

Washington, D.C. 20001 725 Twelfth Street, N.W.

(202) 662-9078 Washington, D.C. 20005

Additional Counsel for Petitioner (202) 434-5000
Continued on Inside Cover Attorneys for Respondent

PETITION FOR CERTIORARI FILED MARCH 28, 1994
CERTIORARI GRANTED MAY 23, 1994

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JOINT APPENDIX
EXHIBITS
TABLE OF CONTENTS

PLAINTIFF’S EXHIBITS

Station Advertising Agreement By and
Between National Railroad Passenger
Corporation and Transportation Displays
Inc. (March 15, 1991)

In-Station Advertising Agreement By and
Between National Railroad Passenger
Corporation and Winston Network, Inc.
NUE Be IN CGG oh cnceduasnccdbedoncs couse

Permit for Advertising Display Facility
Between National Railroad Passenger
Corporation and Transportation
Displays Inc. (August 15, 1980)

Letter, DeAngelo to Haut December 23,

National Railroad Passenger Corporation,
1991 Annual Report

Conveyance from Pennsylvania Tunnel!
and Terminal Railroad Company to
Consolidated Railroad Corporation
[PT&T-CRC-ATK-RPI-2]....

PAGE PAGE
12) Deed By and Between Consolidated Rail 60 Minutes, National Passenger Railroad
Corporation to National Railroad Passenger Corporation Board of Directors
Corporation [NY-EPT& PCRC-ATK-RPE 2] M7 (September 23, 1987) 472
IS Pennsvivania Railroad TDI Agreement 61. National Passenger Railroad © orporation,
May 26, 1967) 318 1992 Annual Report 374
7 Justification of Spectacular Sign Agree 65. Minutes, National Railroad Passenger
ment to A&S Department Stores (8/20/87) 449 Corporation Board of Directors (February 27
is dtas ude... 10)
38 Letter, Notaro to Bourque (September 14,
1987) 7 141 66. National Railroad Passenger Corporation
1976 Annual Report 40)3
48 Letter, Notaro to Simpson (October 10, 1979) 342
68. Secretary of Transportation's Final System
48 Fujitsu letters | TDI production nos. 16, jo PE TEETLCEE EEE 42%
86-93, 19. 11, 13] (six letters and artwork,
various dates) | barat 343 71. Minutes, National Railroad Passenger
Corporation Board of Directors (January 23
49. Two Letters, Notaro to Bourque (July 23 |) RE Seieoh dives ) TDI agrees to survey all TDlI-installed equipment
within sixty (60) days of commencement of this Agreement
and to submit to Amtrak a written plan to replace old equip-
ment and or add new equipment to the Installed Inventory.
Such plan shall be evaluated by Amtrak and Amtrak and TDI
shall mutually agree on additions to Installed Inventory. It is
the intent of TDI to increase its capital investment and
improvements in Installed Inventory in Amtrak stations over
the term of this Agreement by Five Hundred Thousand
Dollars ($500,000), in addition to improvements specified in
the predecessor agreement of $500,000 and specifically to
include those improvements listed in Exhibit D.

(¢) Upon expiration or termination of this Agreement for
any reason, TDI at its sole cost and expense, shall remove
from the property, facilities and premises of Amtrak, al!
Installed Inventory, including but not limited to advertising
trames, clocks, displays, exhibits, and advertising equipment
and materials which TDI and those claiming by, through or
under It were permitted to install or maintain under the rights
and privileges given by this Agreement, and shall restore said

—

JA. 208

°
property, facilities and premises, reasonable wear and tear
excepted.

(d) If TDI shall fail to commence removal of its Installed
Inventory within thirty (30) days after expiration or termi-
nation, then Amtrak may effect such removal and restoration
at the expense of TDI, and TDI agrees to pay Amtrak the rea-

sonable cost and expense thereof promptly upon receipt of
invoice therefor.

SECTION 14. ELECTRICITY

(a) Amtrak shall provide existing electrical current for the
illumination/operation of advertising displays and clocks for
that equipment documented in Exhibit B and Exhibit D.

(b) Amtrak shall not be responsible for reductions or inter-
ruptions in the supply of electrical power.

SECTION 15. NON-INTERFERENCE WITH CONCES.-
SIONAIRES

The rights and privileges granted herein to TDI shall not be
deemed to limit the right of Amtrak to grant tenants, licensees
and concessionaires the right to advertise in the premises or
Space used by them by agreement of Amtrak.

SECTION 16. TERMINATION BY AMTRAK

In addition to any other termination rights contained in the
Agreement, Amtrak shall have the right, upon sixty (60) days
written notice to TDI, to terminate this Agreement any time
after the occurrence of any one or more of the following
events: '

(i) Non-payment of the Guaranteed Annual! Payment
or Percentage Payment due Amtrak when such

non-payment shall continue for a period of twenty
(20) days.

(ii) If any petition shall be filed by or against TDI to
declare TDI bankrupt or to delay, reduce or mod-

J.A. 209

ify TDI’s debts or obligations “or if TDI be
declared insolvent according to law, or if any
assignment of TDI’s property shall be made for the
benefit of creditors, or if a receiver or trustee Is
appointed for TDI or its property, Amtrak may
treat the occurrence of any one or more the fore-
going events as breach of the Agreement without
notice, and immediately enter and repossess the
spaces covered hereunder.

(iii) Abandonment by TDI of and discontinuance of
operations hereunder.

(iv) Non-performance of any covenant of this
Agreement, excluding the covenant of payment
herein contained, and failure of TDI to remedy
such breach within a period of sixty (60) days
after receipt of written notice from Amtrak of the
existence of said breach.

(v) If TDI becomes permanently deprived of the
rights, powers and privileges necessary to the
proper conduct and operations of the Installed
Inventory specified in this Agreement.

(vi) Damage by fire or other casualty to the stations
listed in Exhibit A hereto.

(vii) Assumption of control of any of the aforesaid sta-
tion by parties other than Amtrak.

SECTION 17. TERMINATION BY TDI

In addition to any other termination rights contained in this
Agreement, this Agreement shall be subject to termination by
TDI in the event any one or more of the following events
occur: ates

(i) The permanent abandonment of Amtrak s trans-
portation system, or substantial portions thereof.

J.A. 210

(ii) The lawful assumption by the United States
Government, or any authorized agency thereof, of
the operation, control or use of the transportation
facilities covered hereunder, or any substantial
part or parts thereof in such a manner as to sub-
stantially restrict TDI from operating therefrom
for a period in excess of ninety (90) days.

(iii) Issuance by any court of competent jurisdiction of
any injunction in any way preventing or restrain-
ing the use of Amtrak’s facilities, and the remain-
ing in force of such injunction for a period in
excess of ninety (90) days.

(iv) The default by Amtrak in the performance of any
covenant or agreement herein required to be per-
formed by Amtrak, and the failure of Amtrak to
remedy such default for a period of sixty (60) days

after receipt of written notice by TDI to remedy
the same.

SECTION 18. ABANDONMENT, LEASES, SALES

(a) This Agreement is expressly made subject to any aban-
donment of a part of a line or lines or any facilities or ter-
minals of Amtrak, to any and all sales, leases, assignments or
licenses of any of the aforementioned property or premises by
Amtrak, to the provisions of all leases or agreements under
which Amtrak holds said property or premises, to all encum-
brances, conditions, covenants, rights and easements to which
the title of Amtrak is or may be subject, to ali other leases or
licenses to which Amtrak is or may be subject, to all leases or
licenses which Amtrak may have granted or may grant in the
future to other parties, and to the right of Amtrak at any and
all times: (1) to place or cause to be placed, notices and bul-
letins (in locations other than on TDI’s signs) advertising its
Own services and matters of interest to the public or for the
information of employees or patrons of Amtrak, (2) to sell,

J.A. 211

lease or license any and all of its property and premises, and
(3) to carry on all of its general and special business opera-
tions.

(b) In the event Amtrak desires at any time or times to sell,
assign, lease, license or otherwise dispose of any or all of its
property, facilities, and premises, or to abandon any part of a
line or lines of railroad, TDI at TDI’s sole cost and expense,
shall in any and all such events remove forthwith, upon notice
from Amtrak, any and all Installed Inventory and advertising
matter thereon permitted hereunder that Amtrak specifies
should be removed from the property, facilities or premises to
be sold, leased, licensed, or otherwise disposed of.

SECTION 19. FORCE MAJEURE, STRIKE, ETC.

(a) If TDI is deprived of advertising space in any or ail the
stations set forth in Exhibit A hereto for more than thirty (30)
successive days by reason of force majeure, strike, fire, loss
of inventory by action of Amtrak or other cause beyond the
control of TDI, then the Guaranteed Annual Payment payable
shall be adjusted and/or abated to reflect the loss of use of the
space On a pro-rata basis.

(b) If TDI is totally deprived of advertising space in all the
aforesaid stations for more than sixty (60) successive days
because of force majeure, labor strike, or any other cause
beyond the control of TDI, or if the public is totally denied
norma! access to such stations for any reason, then TDI may
cancel this Agreement in its entirety as of the date of such
deprivation of space or denial of access by giving Amtrak
written notice of its intention do to so, without any further
liability being incurred thereby on the part of TDI or Amtrak.

SECTION 20. INSURANCE AND LIABILITY

(a) TDI shall indemnify and save harmless Amtrak and its
directors, officers, employees, agents, representatives, con-
tractors, invitees or any other persons from al! suits and

Ctewe on

J.A. 212

action of every type and description brought against them, or
which may arise as a result of any injuries or damages
received or sustained by any person, persons or property, or
from acts of said TDI, its agents, servants or employees, per-
formed on the premises of Amtrak.

(b) TDI shall indemnify and save harmless Amtrak and its
directors, officers, employees, agents, representatives, con-
tractors, invitees or any other persons against any claims or
liability arising from or based upon the violation of any fed-
eral, state county or city laws, by-laws, ordinances, or regu-
lations, by TDI, its agents, servants and employees.

(c) Protection against loss by fire or other casualty to the
Installed Inventory or to any part thereof or to the contents of
any advertising displays shall not at any time be an obligation
of Amtrak.

(d) TDI shall procure and maintain at all times during the
term of this agreement, at its own cost and expense, the insur-
ance specified below. All insurance shall be placed with
insurance carriers acceptable to Amtrak and licensed to do
business in the states where the signs are located. TDI shall
furnish Amtrak with a certificate or certificates of insurance
giving evidence of the required coverage at the exercise of
this agreement and on an annua! basis thereafter. With respect
to Railroad Protective Liability Insurance, TDI shall furnish
Amtrak with the original policy at the exercise of this agree-
ment and on an annual basis thereafter. No acceptance by
Amtrak of any insurance certificate or policy required here-
under shall constitute or be construed as a waiver by Amtrak
of the requirements below which shall be and remain the sole
responsibility of TDI. All insurance shall provide for 30 days
prior written notice to be given to Amtrak in the event cov-
erage is substantially changed, cancelled, or non-renewed.
Such notices shall be mailed to Amtrak marked, “Attention:
Vice President-Real Estate and Operations Development”, at
the address set forth on page first hereof. The failure by TDI
at any time to procure and/or maintain any of the below stated

J.A. 213

insurance will constitute a default under Section 30 hereot
and Amtrak may terminate this agreement. Amtrak reserves
the right to increase the required coverage at any time at the
sole discretion of Amtrak. _

(i) Commercial General Liability Insurance—\ssued to
and covering liability imposed upon TDI with
respect to the operations of this agreement, and all
obligations assumed by TDI under the terms of this
agreement. Products/completed operations, inde-
pendent contractors, contractual, and personal
injury/advertising liability coverages are to be
included, and Amtrak is to be named as an addi-
tional insured with respect to TDI’s operations in
connection with this agreement. Coverage under
this policy shall have limits of liability of not less
than two million dollars ($2,000,000) combined sin-
gle limit for bodily injury (including disease or
death), personal injury, and property damage
(including loss of use) liability.

(ii) Workers’ Compensation Insurance—Complying with
the requirements of the statutes of jurisdiction in
which operations of TDI will take place, covering
all employees of TDI. Employers’ Liability cover-
age with limits of liability of not less than five hun-
dred thousand dollars ($500,000) each accident or
illness shall be included.

(iii) Railroad Protective Liability Insurance—TDI shall
provide, with respect to its operations or operations
of its subcontractors within fifty (50) feet vertically
or horizontally of railroad tracks, Railroad Protec-
tive Liability Insurance, AAR-AASHTO (ISO/RIMA)
Form, in the name of National Railroad Passenger
Corporation (Amtrak). The policy shall have limits
of liability of not less than two million dollars
($2,000,000) per occurrence, combined single limit,

JA. 214

for coverages A and B, for losses arising out of
injury to or death of all persons, and for physical
loss or damage to or destruction of property, includ-
ing the loss of use thereof. A six million dollar
($6,000,000) annual aggregate may apply. The pol-
icy shall be endorsed to protect Amtrak against all
risk of liability arising directly or indirectly from
TDI's use or occupancy of any sign location pur-
suant to this agreement

(iv) Property Insurance—covering all sign structures
and improvements against loss or damage by fire
and such other damage by hazards as are included
in the extended coverage endorsement in an amount
not less than ninety percent (90%) of the full
replacement cost of such property. This insurance
Shall contain a waiver of subrogation against
Amtrak.

SECTION 21. ASSIGNMENT, SUCCESSORS AND ASSIGNS

(a) TDI shall not assign or transfer any of the rights or
privileges granted herein without the prior written approval

of Amtrak, which approval shall not be unreasonab!y with-
held.

_(b) The terms of this Agreement shall be binding upon the

executors, administrators, successors and assigns of the par-
ties hereto.

SECTION 22. PATENTS AND TRADEMARKS

TDI represents that it is the owner of or fully authorized to
use any and all services, processes, machines, articles, marks,
names or slogans used by it in its operations under or con-
nected with this Agreement. TDI agrees to save and hold
Amtrak, its directors, officers, employees, agents, represen-
tatives, contractors, invitees or any other persons free and
harmless of and from any loss, liability, expenses, suit or

J.A. 215

claim for damages in connection with any actual or alleged
infringement of any patent, trademark or copyright, or arising
from any alleged or actual unfair competition or other simi-
‘ar claim arising out of the operations of TDI under or con-
nected with this Agreement.

SECTION 23. CONDUCT OF EMPLOYEES

TDI agrees that while its officers, agents and employees are
on Amtrak premises, and about the station buildings, plat-
forms and grounds, it will cause them to conduct themselves
in a proper manner, and if complaint is made by Amtrak, it
will forthwith take such corrective measures as are necessary.

SECTION 24. NOTICES

All notices, consents, demands, approvals, and requests
(“notices”) which are required or permitted to be given by
either party to the other, pursuant to any provision of this
Agreement, shall be sent by United States certified mail,
return receipt requested, and shail be addressed as follows (or
to such other address as either party may designate from time
to time by written notice to the other):

(i) If to Amtrak:

National Railroad Passenger Corporation

v0 Massachusetts Avenue, N.E.

Washington, DC 20002

Attention: Vice President-Real Estate and
"Operations Development

(11) If to TDI:

Transportation Displays, Incorporated

275 Madison Avenue oO
New York, NY 10016

Attention: Senior Vice President, Franchises

eS ee — oo

J.A. 216
SECTION 25. WAIVER

No waiver of any term, condition or breach of this
Agreement on any occasion shall be deemed to be a waiver of
any other term, condition or breach of this Agreement on any
other occasion, or a waiver of any Continuing or subsequent
breach of the same term or condition.

SECTION 26. INDEPENDENT CONTRACTOR

TDI is a independent professional firm contracting with
Amtrak to provide expert assistance. TDI, its directors, offi-
cers, employees, agents, and servants are not to be deemed
employees, agents, or servants of Amtrak. TDI assumes full
responsibility for liability arising out of the negligence of its
employees, whether by action or inaction. Amtrak assumes no
liability or responsibility for the negligent acts of TDI, its
directors, officers, employees, agents, or servants, by virtue
of entering into this Agreement. TDI is and shall remain an
independent contractor under the terms of this Agreement.

SECTION 27. INTERPRETATION OF AGREEMENT

This Agreement shall be governed and constructed in accor-
dance with the laws of the District of Columbia.

SECTION 28. SECTION TITLES

The titles of Sections are for ease of reference only, and
Shall not be construed to control or in any way alter the plain
meaning of the text of this Agreement.

SECTION 29. NON-DISCRIMINATION

TDI, in exercising any of the rights or privileges herein
granted to it, shall not, on the grounds of age, sex, religion,
race, color or national origin, discriminate or permit dis-
crimination against any person or group of persons in any
manner prohibited by federal, state or local laws. TDI shall
comply with such Equal Opportunity and Affirmative Action

J.A. 217

policies required of Amtrak contractors as Amtrak may estab-
lish from time-to-time.

SECTION 30. ENTIRE AGREEMENT

(a) This Agreement represents the entire understanding and
agreement between the parties with respect to the subject mat-
ter hereof.

(b) This Agreement may not be changed oraily. This
Agreement may be changed only by mutual agreement in
writing.

(c) If any provision of this Agreement is determined to be
invalid or unenforceabie, it shall be considered deleted here-
from and shall not invalidate the remaining provisions hereof.

SECTION 31. PRIOR AGREEMENTS

This Agreement cancels and supersedes all prior agree-
ments relating to the subject matter of this Agreement
between TDI or predecessors to TDI and Amtrak and the pre-
decessors of Amtrak, as such Agreements pertain to the prop-
erty and land that is owned, leased or otherwise used or
occupied by Amtrak

SECTION 32. PUBLIC SERVICE ADVERTISING

(a) TDI shall provide space for public service and Amtrak
advertising on a preemptible basis. All public service a“ver-
tising shall be subject to removal at any time for the benefit
of paying advertisers.

(b) Public service advertising shall be entitled, at TDI dis-
cretion, to receive unsold advertising space at no space
charge. However, TDI shall be permitted to charge a one-time
labor fee to cover its out-of-pocket labor costs. Such labor fee
shall not be deemed a part of TDI’s Net Receipts as defined in
this Agreement.

J.A. 218

(c) TDI, in addition to providing public service advertising
at no space cost, shall provide advertising space, on a pre-
emptible basis, to legitimate non-profit organizations, at an
established discount from regular space rate. The availability
of the discount on the space rate shall be determined by TDI
at its own discretion. All revenues collected pursuant to this

Subsection shall be subject to regular revenue sharing with
Amtrak.

(d) Amtrak reserves the right to place its own messages,
publicizing its own services, on the facilities covered by this
Agreement. TDI will post and remove all such messages for
Amtrak at no charge to Amtrak. All copies shall be provided
to TDI by Amtrak at Amtrak’s expense. All messages posted
pursuant to this sub-section shall be on a preemptible basis
for the benefit of paying advertisers, and shall be reasonable
as to quantity to be posted. All materials to be posted shall be

delivered to TDI not less than three (3) weeks prior to the

required posting date.

SECTION 33. ARBITRATION

Any controversy or claim arising out of or relating to this
contract, or breach thereof, shall be settled by arbitration in
accordance with the Commercial Arbitration Rules of the
American Arbitration Association and judgment upon the
award rendered by the Arbitrator(s) may be entered in any
court having jurisdiction thereof.

IN WITNESS WHEREOF, the parties hereto, by their autho-
rized officers, have executed this Agreement as of the day and
year first above written.

ATTEST: TRANSPORTATION DISPLAYS, INC.
By: [ILLEGIBLE] /s/
Witness By: ____[ILLEGIBLE) /s/

Executive Vice President

Date: [ILLEGIBLE]

NATIONAL RAILROAD PASSENGER

J.A. 219

CORPORATION

By: TONY DE ANGELO by [ILLEGIBLE]

Tony DeAngelo
Vice President
Real Estate and

Date:

Operations Development

March 28, 1991

J.A. 220

EXHIBIT A

Station Advertising Agreement by and between National
Railroad Passenger Corporation (Amtrak) and Transportation
Displays, Inc. (TDI).

Stations where advertising is installed

1. New York Penp Station

2. Princeton Junctior © w Jersey

3. Trenton, New Jersey

4. Newark, New Jersey

5 Wilm; _Del i, bs eee
6. Baltimore Penn Station
7. Philadelphia 30th Street Station
8. North Philadelphia
)
0
]

. Septa Stations owned by Amtrak
10. New Carrollton, Maryland
11. Washington D.C. Union Station |
Stations specifically excluded from Agreement

1. Chicago Union Station

Stations for expansion “

Providence, R.lI.
Albany/Rensselaer, N.Y.
Hudson, New York

Rhinecliff, New York

Kingston, Rhode Island

Old Saybrook, Connecticut
New London, Connecticut
Connecticut Commuter Stations
BWI

Westerly, Rhode Island

Pee ar raer rr

—

J.A. 221

PLAINTIFF’S EXHIBIT 3

IN-STATION ADVERTISING AGREEMENT
BY AND BETWEEN NRPC and WNI

FORM PARAGRAPHS

ISAA.
ISAA.
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ISAA.

ISAA.
ISAA.

ISAA.

ISAA.
ISAA.

ISAA.
ISAA.

ISAA.
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ISAA.

ISAA.
ISAA.

INTRODUCTION
SECTION 1. , GRANT
SECTION 2... TERM
SECTION 3. ANNUAL PAYMENT 7
SECTION 4. NEW YORK CITY-
PENNSYLVANIA STATION
ADVERTISING
SPECTACULAR DISPLAY
SECTION 5. AUDITS
SECTION 6. APPROVAL OF
ADVERTISING MATERIAL
& LOCATIONS
SECTION 7. LAWS, ORDINANCES,
RULES AND REGULATIONS
SECTION 8. RATES
SECTION 9. CONTRACT FORMS
SECTION 10. STORAGE SPACE
SECTION 11. WORK ON AMTRAK
PROPERTY
SECTION 12. MAINTENANCE
SECTION 13. ADVERTISING
EQUIPMENT
SECTION 14. ELECTRICITY
SECTION 15. NON-INTERFERENCE
WITH CONCESSIONAIRES :
SECTION 16. TERMINATION BY
AMTRAK
SECTION 17. TERMINATION BY WNI
SECTION 18. ABANDONMENT, LEASES,

SALES

ISAA. 19

ISAA. 20

J.A. 222

SECTION 19.

SECTION 20.

SECTION 21.

SECTION 22.

SECTION 23.
SECTION 24.
SECTION 25.
SECTION 26.
SECTION 27.

SECTION 28.
SECTION 29.

SECTION 30.
SECTION 31.
SECTION 32.

SECTION 33.

FORCE MAJEURE,
STRIKE, ETC.
INSURANCE AND
LIABILITY
ASSIGNMENTS,
SUCCESSORS AND ASSIGNS
PATENTS AND
TRADEMARKS
CONDUCT OF EMPLOYEES
NOTICES :
WAIVER
INDEPENDENT CONTRACTOR
INTERPRETATION OF
AGREEMENT
SECTION TITLES
NON-DISCRIMINATION

ENTIRE AGREEMENT

PRIOR AGREEMENT

PUBLIC SERVICE
ADVERTISING

ARBITRATION

IN WITNESS

J.A. 223

IN-STATION ADVERTISING AGREEMENT
BY AND BETWEEN

NATIONAL RAILROAD PASSENGER CORPORATION
AND
WINSTON NETWORK, INC.

This Agreement (Agreement), dated as of the first-day of
December, 1985, is made between the NATIONAL RAIL-
ROAD PASSENGER CORPORATION, a Corporation of the
Street, Washington, DC 20001 (hereinafter referred to as
“Amtrak”), and Winston Network, Inc., a New York Corpora-
tion, having an office at 275 Madison Avenue, New York,
New York 10016 (hereinafter referred to as “WNI”).

SECTION 1. GRANT

For and in consideration of the payments, covenants and
agreements hereinafter mentioned, Amtrak does hereby grant
to WNI the right and privilege to develop, construct, place
and maintain posters, WNI Islands, clocks and dioramas, and
to sell advertising space thereon, at those locations listed in
Exhibit A hereto as well as at additional locations which may
be authorized by Amtrak, at the sole discretion of Amtrak.
WNI may enter into contracts, licenses and sub-licenses for
advertising displays in the name of WNI, but not in the name
of Amtrak. Both Amtrak and WNI may develop, construct,
place and maintain self-contained floor exhibits and sell
advertising space thereon.

SECTION 2. TERM

Subject to all the terms and conditions hereof, this
Agreement shall be for a term of five (5) years, commencing
on December 1, 1985, and ending on November 30, 1990 and
shall continue from year-to-year thereafter unless either party
hereto shall give to the other not less than one (1) year’s writ-

J.A. 224

ten notice of termination of this Agreement; which notice
shall expire on the last day of the term or the last day of any
subsequent additional year, as the case may be.

Amtrak may terminate this Agreement at any time with
respect to all or any stations by giving thirty (30) days prior
written notice of termination and upon the date of termination
specified in such notice, this Agreement shall cease, terminate
and come to an end, provided, however, that this Agreement
Shall continue in full force and effect with respect to any indi-
vidual advertising contract so long as said contract does not
have an initial term in excess of one year, nor, in any event,
be in effect for more than one year following said termination
date. j

SECTION 3. ANNUAL PAYMENT

(a) In consideration of the rights and privileges granted
herein, WNI agrees to pay to Amtrak, on and after the first
anniversary date of this Agreement, a guaranteed annual pay-
ment based on Installed Inventory; as defined herein and the
applicable percentages of net receipts (hereinafter “Percent-
age Payment”), as set forth in Section 3(d) and Section (e)
below. On the second anniversary date of this Agreement; and
on each anniversary date thereafter, said guaranteed annual
payment shall be one hundred and ten percent (110%) of the
guaranteed annual payment payable hereunder in the year
immediately preceding.

(b) On or before the 25th day of each month, WNI shall
furnish Amtrak with a complete statement of WNI’s net
receipts (as defined in subsection (f) of this Section 3 for the
preceding month, (hereinafter “Net Receipts”). Such state-
ment shall show the total amount of Net Receipts for the pre-
ceding month, including the name of the advertiser(s),
amount(s) billed, and amount(s) collected. WNI’s check for
Percentage Payment shall accompany each statement if in
excess of '/,, of the minimum annual fee.

J.A. 225

(c) Within forty-five (45) days following the close of each
year and of this Agreement and each continued year here-
under, WNI shall furnish Amtrak with a consolidated state-
ment of Net Receipts (hereinafter “Net Receipts”) for the year
in question, certified by an independent Certified Public

Accountant.

(d) WNI shall pay to Amtrak the following percentages of
Net Receipts according to media used, as follows:

(i) Self-contained Floor Exhibits, —60%
if marketed by WNI
(ii) Clocks, Dioramas, Posters —50%

and WNI Island Displays

By mutual agreement in writing the parties hereto may add
to the foregoing other media and the percentages of Net
Receipts to be made applicable thereto.

Percentages of Net Revenue payable by WNI hereunder
shall be no lower than those payable by WNI to railroads
other than Amtrak:

(e) As used herein, “Installed Inventory” shall mean adver-
tising display equipment as defined in Section 13 hereof.

Exhibit “A” attached hereto and made part hereof sets forth
the Installed Inventory, as of the date of execution hereof, at
the rail passenger stations listed in said Exhibit “A”. On
the anniversary date of each year of this Agreement; and
each continued year, WNI shall deliver to Amtrak a revised
Exhibit A, specifying additions to, and deletions from the pre-
vious year’s Installed Inventory. The guaranteed annual fee
shall be adjusted annually (on the anniversary date of this
Agreement) by mutual agreement between Amtrak and WNI,
to reflect all changes in Installed Inventory.

(f) As used herein, “Net Receipts” shall mean and include
the gross amounts paid to or received by WNI from adver-
tisers or their advertising agencies for the use of advertising
facilities under this Agreement; provided, however, that there

J.A. 226

Shall be excluded from the computation of Net Receipts th
following: : :
(i) Standard advertising commissions paid to recog-
nized advertising agencies with respect to the use
of advertising facilities hereunder, not to exceed

; fifteen (15%) percent for all advertising media;
(ii) Quantity purchase discounts actually allowed by
WNI; to advertisers or their advertising agencies

hereunder;

(iii) Taxes separately stated and paid by advertisers or
their advertising agencies and payable to or for the
account of WNI; and

(iv) Any amounts received by WNI which are not
related to the use of advertising facilities here-
under.

(v) Labor fees charged by WNI to public service
advertising pursuant to Section 32(b) hereof.

SECTION 4. NEW YORK CITY—PENNSYELVANIA STATION
ADVERTISING SPECTACULAR DISPLAY

(a) This Agreement cancels and supersedes that certain
Permit for Advertising Display Facilities, between Amtrak
and WNI, dated August 15, 1980, Permit No. 31-01-047.

SECTION 5. AUDITS

(a) In order to verify the amount of Net Receipts reports by
WNI for any year or portion thereof under this Agreement
Amtrak shall have the right, at any time (but not after 2 years
subsequent to the expiration of any such year), to conduct an
audit of WNI’s books and records pertaining to this
Agreement. Such audits may be made by Amtrak’s Auditing
Department or by independent Certified Public Accountants
or by any other agent selected by Amtrak, or by any federal

agency (including the General Accounting Office) whi
the right to audit accounts. , itt sat

J.A. 227

(b) If such audit reveals an understatement of WNI’s Net
Receipts for the period in question, and a consequent defi-
ciency in Percentage Payment, WNI shall forthwith pay the
amount of such deficiency to Amtrak, and, if such audit
reveals an overpayment of Percentage Payment, Amtrak shall
credit against the next monthly installment(s) of Percentage
Payment to fall due, the amount of such overpayment, pro-
vided, however, that if the amount of any refund due to WN]
hereunder exceeds the aggregate of installment(s) of
Percentage Payment total due, and if, and WNI has fully com-

plied with all of the terms, covenants, conditions and provi- _

sions to be performed by WNI under this Agreement and is
not indebted to Amtrak, the amount of such excess shall be
paid to WNI within thirty (30) days. The cost of such audit
shall be borne by Amtrak. The provisions of this covenant
shall survive the expiration or other termination of this
Agreement.

SECTION 6. APPROVAL OF ADVERTISING MATERIAL &
LOCATIONS

All advertising material, exhibit material, notices and
advertisements, and their manner of presentation and design,
shall be subject to approval by Amtrak, which may disap-
prove any such items at its own discretion. WNI will imme-
diately remove, at its sole expense, upon written demand of
Amtrak, any display, sign, poster, or other advertising mate-
rial (including advertisement content) which may be consid-
ered objectionable by Amtrak. In the event that such matter is
not removed immediately upon receipt of written demand,
Amtrak may remove said material or display and WNI will
pay any costs or expense incurred by Amtrak, including all
labor charges and warehouse or storage rental incurred as a
consequence of such action. Amtrak shall not, in any way, be
held responsible for liable for any actions taken under this
Section.

.

J.A. 228

SECTION 7. LAWS, ORDINANCES, RULES AND REGU-
LATIONS

(a) WNI shall comply with all applicable federal, state, and
local laws, ordinances, rules and regulations and with the
rules and regulations of Amtrak, in the erection, display and
maintenance of all advertising. In the event that such laws,
ordinances, rules or regulations require removal of all or any
WNI Installed Inventory, WNI shall promptly comply with
such requirement at its own cost and expense.

(b) WNI shall procure all necessary licenses, certificates,
permits and authorizations, and shall pay all costs thereof.

(c) In the event any category or categories of advertising
Shall be prohibited, the parties hereto agree to negotiate in
good faith, an adjustment to the Percentage Payment payable

under Section 3 hereof, said adjustment to reflect the loss of
such advertising categories.

SECTION 8. RATES

(a) WNI shall establish and print a schedule of rates for all
advertising displayed under this Agreement.

(b) A copy of WNI’s published rates, effective as of the
date of this Agreement, is attached hereto as Exhibit “B”,
WNI shall furnish Amtrak with copies of all revisions,
changes and amendments to Exhibit “B”.

(c) Amtrak, shall furnish WNI with ridership information,
as available. WNI shall furnish Amtrak with all data relevant
to determining the schedule of rates for all advertising dis-
played under this Agreement.

SECTION 9. CONTRACT FORMS

WNI shall submit to Amtrak, for prior approval, a!l forms
to be utilized by WNI for contracting with advertisers. Copies
of all contracts or agreements made by WNI pursuant to this
Agreement shall also be submitted, upon request, to Amtrak.

J.A. 229

SECTION 10. STORAGE SPACE

Amtrak agrees, where conditions permit and space is avail-
able, to provide WNI with reasonable space within stations
for handling and storing of WNI’s supplies, materials and
advertising matter to be used pursuant to this Agreement.
Amtrak shall incur no cost, expense or liability whatsoever in
connection with such space, and WNI, if required, shall pay
market rate rental for any unimproved storage space made
available by Amtrak for WNI’s use.

SECTION 11. WORK ON AMTRAK PROPERTY

The work of constructing, maintaining, repairing, altering,
renewing, relocating, or removing any Installed Inventory
shall be done under such conditions as shall be satisfactory to
and be approved in advance by the Chief Engineer of Amtrak,
or his designee, and as will not interfere with the proper and
safe use, operation and enjoyment of the property of Amtrak.
No such work shall be undertaken by or on behalf of WNI
without prior written approval as aforesaid. WNI, at its own
cost and expense, shall, when performing any work in con-
nection with any part of the Installed Inventory, arrange for
any necessary watchmen or flagman to ensure that personnel,
equipment and materials are kept a safe distance away from
the railroad tracks. Any notification required to be given to
Amtrak by WNI shall be sent by certified mail to such per-
sons and addresses as may be designated by Amtrak’s Chief
Engineer or his designee.

SECTION 12. MAINTENANCE

WNI agrees that it will furnish, mount, install and contin-
uously maintain in a clean and first-class condition its
Installed Inventory and all parts thereof, and, in general, do
any and all work under this Agreement, subject to the super-
vision and approval of Amtrak, at such times and in such
manner as in no way to impede or interfere with the use or
operation of Amtrak’s facilities. WNI, its employees, ser-

J.A. 230

vants, suppliers of materials, and furnishers of service shall
have the right to ingress and egress at Amtrak’s facilities,

subject prior approval by Amtrak in order to perform its obli-
gations set forth in this Agreement.

SECTION 13. ADVERTISING EQUIPMENT

(a) WNI shall furnish, mount and install, its own adver-
tising display equipment, including, but not limited to frames,
boards, clocks, poster panels, islands, exhibits, dioramas, or
any other advertising display equipment, at its sole cost and
expense. All equipment is and shall remain the property of

WNI, unless owned by a third party and installed in stations
on a rental basis.

(b) WNI agrees to survey all WNI-installed equipment
within one year of commencement of this Agreement and to
submit to Amtrak a written plan to replace old equipment
and/or add new equipment to the Installed Inventory. Such
plan shall be evaluated by Amtrak and Amtrak and WNI shall
mutually agree on additions to Inventory. It is the intent of
WNI to increase its capital investment and improvements in
Installed Inventory in Amtrak stations over the term of this
Agreement by $1,000,000.

(c) Upon expiration or termination of this Agreement for
any reason, WNI, at its sole cost and expense, shall remove
from the property, facilities and premises of Amtrak, all
Installed Inventory, including but not limited to advertising
frames, clocks, displays, exhibits, and advertising equipment
and materials which WNI and those claiming by, through or
under it were permitted to install or maintain under the rights
and privileges given by this Agreement, and shall restore said

property, facilities and premises, reasonable wear and tear
excepted.

(d) If WNI shall fail to commence removal of its Installed
Inventory within ninety (90) days after expiration or termi-
nation, then Amtrak may effect such removal and restoration

J.A. 231

at the expense of WNI, and WNI agrees to pay Amtrak the
reasonable cost and expense thereof promptly upon receipt of
invoice therefor.

SECTION 14. ELECTRICITY

(a) Amtrak shall provide existing electrical current for the
illumination/operation of advertising displays and clocks.

(b) Amtrak shall not be responsible for reductions or inter-
ruptions in the supply of electrical power.

SECTION 15. NON-INTERFERENCE WITH
CONCESSIONAIRES

The rights and privileges granted herein to WNI shall not
be deemed to limit the right of Amtrak to grant tenants,
licensees and concessionaires the right to advertise in the
premises or space used by them by agreement of Amtrak.

SECTION 16. TERMINATION BY AMTRAK

In addition to any other termination rights contained in the
Agreement, Amtrak shall have the right, upon sixty (60) days
written notice to WNI, to terminate this Agreement any time

after the occurrence of any one or more of the following ©

events:

(i) Non-payment of Percentage Payment due Amtrak
when such non-payment shall continue for a
periodof twenty (20) days after written notice of
demand for payment.

(ii) If any petition shall be filed by or against WNI to
declare WNI bankrupt, or to delay, reduce or mod-
ify WNI’s debts or obligations or if WNI be
declared insolvent according to law, or if any
assignment of WNI’s property shall be made for
the benefit of creditors, or if a receiver or trustee
is appointed for WNI or its property, Amtrak may
treat the occurrence of any one of more of the

J.A. 232

foregoing events as breach of the Agreement with-
out notice, and immediately enter and repossess
the spaces covered hereunder.

(iii) Abandonment by WNI of and discontinuance of
- Operations hereunder.

(iv) Non-performance of any covenant of this
Agreement, excluding the covenant of payment
herein contained, and failure of WNI to remedy
such breach within a period of sixty (60) days
after receipt of written notice from Amtrak of the
existence of said breach.

(v) If WNI becomes permanently deprived of the
rights, powers and privileges necessary to the
proper conduct and operations of the Installed
Inventory specified in this Agreement.

(vi) Damage by fire or other casualty to the stations
listed in Exhibit A hereto.

(vii) Assumption of control of any of fhe aforesaid sta-
tion by parties other than Amtrak.

SECTION 17. TERMINATION BY WNI

In addition to any other termination rights contained in this
Agreement, this Agreement shall be subject to termination by

WNI in the event any one or more of the following events
occur:

(i) The permanent abandonment of Amtrak’s trans-
portation system, or substantial portions thereof.

(ii) The lawful assumption by the United States
Government, or any authorized agency thereof, of
the operation, control or use of the transportation
facilities covered hereunder, or any substantial
part or parts thereof in such a manner as to sub-
Stantially restrict WNI from operating therefrom
for a period in excess of ninety (90) days.

J.A. 233

(iii) Issuance by any court of competent jurisdiction of
an injunction in any way preventing or restraining
the use of Amtrak’s facilities, and the remaining In
force of such injunction for a period in excess of
ninety (90) days.

(iv) The defau!t oy Amtrak in the performance of any
covenant or agreement herein required to be per-
formed by Amtrak, and the failure of Amtrak to
remedy such default for a period of sixty (60) days
after receipt of written notice by WNI to remedy
the same.

SECTION 18. ABANDONMENT, LEASES, SALFS

(a) This Agreement is expressly made Subject to any aban-
donment of a part of a line or lines or any facilities or ter-
minals of Amtrak, to any and all sales, leases, assignments or
licenses of any of the aforementioned property or premises by
Amtrak, to the provisions of all leases or agreements under
which Amtrak holds said property or premises, to all encum-
brances, conditions, covenants, rights and easements to which
the title of Amtrak is or may be subject, to all other leases or
licenses to which Amtrak is or may be subject, to all leases or
licenses which Amtrak has granted or may grant in the future
to other parties, and to the right of Amtrak at any and all
times: (1). to place or cause to be placed, notices and bulletins
(in locations other than on WNI’s signs) advertising its own
services and mattérs of interest to the public or for the infor-
mation of employees or patrons of Amtrak, (2) to sell, lease
or license any and all of its property and premises, and (3) to
carry on all of its general and special business operations.

(b) In the event Amtrak desires at any time or times to sell,
assign, lease, license or otherwise dispose of any or all of its
property, facilities, and premises, or to abandon any part ofa
line or lines of railroad, WNI at WIN’s sole cost and expense,
shall in any and all such events remove forthwith, upon notice
from Amtrak, any and all Installed Inventory and advertising

7
7

J.A. 234

matter thereon permitted hereunder that Amtrak specifies
Should be removed from the property, facilities or premises to
be sold, leased, licensed, or otherwise disposed of.

SECTION 19. FORCE MAJEURE, STRIKE, ETC.

(a) If WNI is deprived of advertising space in any or all the
Stations set forth in Exhibit A hereto for more than thirty (30)
successive days by reason of force majeure, strike, fire, or
other cause beyond the control of WNI, then the Percentage

Payment payable shall be adjusted and/or abated to reflect the
loss of use of the space on a pro-rata basis.

(b) If WNI is totally deprived of advertising space in all
the aforesaid stations for more than sixty (60) successive days
because of force majeure, labor strike, or any other cause
beyond the control of WNI, or if the public is totally denied
normal access to such stations for any reason, then WN] may
cancel this Agreement.in its entirety as of the date of such
deprival of space or denial of access by giving Amtrak writ-
ten notice of its intention do to so, without any further lia-
bility being incurred thereby on the part of WNI or Amtrak

SECTION 20. INSURANCE AND LIABILITY

(a) WNI shall indemnify and save harmless Amtrak and its

_ directors, officers, employees, agents and representatives

from all suits and action of every name and description
brought against them, or which may arise as a result of any
injuries or damages received or sustained by any person, per-
sons or property, or from acts of said WNI, its agents, ser-
vants or employees, performed on the premises of Amtrak.

(b) WNI shall indemnify and save harmless Amtrak and its
directors, officers, employees, agents and representatives
against any claims or liability arising from or based upon the
violation of any federal, state, county or city laws, by-laws,

ordinances, or regulations, by said WNI, its agents, servants
and employees.

J.A. 235

(c) Protection against loss by fire or other casualty to the
Installed Inventory or to any part thereof or to the contents of
any advertising displays shall not at any time be an obligation
of Amtrak.

(d) WNI shall, at its own cost and expense, maintain in
effect at all times during the existence of this Agreement,
Workmen’s Compensation and Comprehensive Public
Liability Insurance, insurance against death, personal injury,
property damage, and legal-contractual liability, arising from
or in connection with acts or omissions pursuant to this
Agreement, in an amount not less than Three Million Dollars
($3,000,000.00) combined single limit.

(e) During such times as WNI is performing major con-
struction or major repairs, as determined by Amtrak, WN]
will provide Railroad Protective Liability Insurance written
for and on behalf of Amtrak, providing limits of Two Million
Dollars ($2,000,000.00).

(f) Upon execution of this Agreement by Amtrak, WNI
shall furnish certificates of such required insurance, as to con-
tents and carriers, to Amtrak, which will contain the follow-
ing provisions:

(i) Thirty (30) days prior notice to Amtrak of policy
cancellation or termination.

7

(ii) Under all policies of insurance, Amtrak shall be
included as an additional named insured.

SECTION 21. ASSIGNMENT, SUCCESSORS AND ASSIGNS

(a) WNI shall not assign or transfer any of the rights or
privileges granted herein without the prior written approval
of Amtrak, which shall not be unreasonably withheld.

(b) The terms of this Agreement shall be binding upon the
executors, administrators, successors and assigns of the par-
ties hereto.

J.A. 236

SECTION 22. PATENTS AND TRADEMARKS

WNI represents that it is the owner of or fully authorized to
use any and all services, processes, machines, articles, marks,
names or slogans used by it in its operations under or con-
nected with this Agreement. WNI agrees to save and hold
Amtrak, its directors, officers, employees, agents and repre-
sentatives free and harmless of and from any loss, liability,
expenses, suit or claim for damages in connection with any
actual or alleged infringement of any patent, trademark or
copyright, or arising from any alleged or actual unfair com-
petition or other similar claim arising out of the operations of
WNI under or connected with this Agreement.

SECTION 23. CONDUCT OF EMPLOYEES

WNI agrees that while its officers, agents and employees
are on Amtrak premises, including but not limited to, rail
cars, and about the station buildings, platforms and grounds,
it will cause them to conduct themselves in a proper manner,
and if complaint is made by Amtrak, it will forthwith take
such corrective measures as are necessary.

SECTION 24. NOTICES

All notices, consents, demands, approvals, and requests
(“notices”) which are required or permitted to be given by
either party to the other, pursuant to any provision of this
Agreement, shall be sent by United States certified mail,
return receipt requested, and shall be addressed as follows (or
to such other address as either party may designate from time
to time by written notice to the other):

(i) If to Amtrak:

National Railroad Passenger Corporation
400 North Capitol Street, NW
Washington, DC 20001

Attention: Vice President-Real Estate

J.A. 237

(ii) If to WNI:

Winston Network, Inc.

275 Madison Avenue

New York, NY 10016

Attention: Senior Vice President, Franchise

SECTION 25. WAIVER

No waiver of any term, condition or breach of this
Agreement on any occasion shall be deemed to be a waiver of
any other term, condition or breach of this Agreement on any
other occasion, or a waiver of any continuing or subsequent
breach of the same term or condition.

SECTION 26. INDEPENDENT CONTRACTOR

WNI is an independent professional firm contracting with
Amtrak to provide expert assistance. WNI, its directors, offi-
cers, employees, agents, and servants are not to be deemed
employees, agents, or servants of Amtrak. WNI assumes full
responsibility for liability arising out of the negligence of its
employees, whether by action or inaction. Amtrak assumes no
liability or responsibility for the negligent acts of WNI, its
directors, officers, employees, agents, or servants, by virtue
of entering into this Agreement. WNI is and shall remain an
independent contractor under the terms of this Agreement.

SECTION 27. INTERPRETATION OF AGREEMENT

This Agreement shall be governed and constructed in accor-
dance with the laws of the District of Columbia.
SECTION 28. SECTION TITLES

The titles of Sections are for ease of reference only, and
shall not be construed to control or in any way alter the plain
meaning of the text of this Agreement.

J.A. 238
SECTION 29. NON-DISCRIMINATION

WNI, in exercising any of the rights or privileges herein
granted to it, shall not, on the grounds of age, sex, religion,
race, color or national origin, discriminate or permit dis-
crimination against any person or group of persons in any
manner prohibited by federal, state or local laws. WNI shall
comply with such Equal Opportunity and Affirmative Action

policies required of Amtrak contractors as Amtrak may estab-
lish from time-to-time.

SECTION 30. ENTIRE AGREEMENT

(a) This Agreement represents the entire understanding and

agreement between the parties with respect to the subject mat-
ter hereof.

(b) This Agreement may not be changed orally. This

Agreement may be changed only by a mutual agreement in
writing.

. (c) If any provision of this Agreement is determined to be
invalid or unenforceable, it shall be considered deleted here-
from and shall not invalidate the remaining provisions hereof.

SECTION 31; PRIOR AGREEMENTS

This Agreement cancels and supersedes all prior agree-
ments relating to the subjer: matter of this Agreement
between WNI and Amtrak and |e predecessors of Amtrak, as
such Agreements pertain to the property and land that is
owned, leased or otherwise used or occupied by Amtrak.

SECTION 32. PUBLIC SERVICE ADVERTISING .

(a) WNI shall provide space for public service advertising
On a preemptible basis. All public service advertising shall

be subject to removal at any time for the benefit of paying
advertisers.

J.A. 239

(b) Public service advertising shall be entitled, at WNI,
discretion, to receive unsold advertising space at no space
charge. However, WNI shall be permitted to charge a one-
time labor fee to cover its out-of-pocket labor costs. Such
labor fee shall not be deemed a part WNI’s Net Receipts as
defined in this Agreement.

(c) WNI, in addition to providing public service advertis-
ing at no space cost, shall provide advertising space, on a pre-
emptible basis, to legitimate non-profit organizations, at an
established discount from regular space rate. The availability
of the discount on the space rate shall be determined by WNI
at its own discretion. All revenues collected pursuant to this
subsection shall be subject to regular revenue sharing with
Amtrak.

(d) Amtrak reserves the right place its own messages, pub-
licizing its own services, on the facilities covered by this
Agreement. WNI will post and remove all such messages for
Amtrak at no charge to Amtrak. All copy shall be provided to
WNI by Amtrak at Amtrak’s expense. All messages posted
pursuant to this sub-section shall be on a preemptible basis
for the benefit of paying advertisers, and shall be reasonable
as to quantity to be posted. All materials to be posted shall be
delivered to WNI not less than three (3) weeks prior to the
required posting date.

SECTION 33. ARBITRATION

Any controversy or claim arising out of or relating to this
contract, or the breach thereof, shall be settled by arbitration
in accordance with the Commercial Arbitration Rules of the
American Arbitration Association and judgment upon the
award rendered by the Arbitrator(s) may be entered in any
court having jurisdiction thereof.

|

J.A. 240

IN WITNESS WHEREOF, the parties hereto, by their autho-

rized officers, have executed this Agreement as of the day and
year first above written.

ATTEST: WINSTON NETWORK, INC.
By: _[illegible]/s/
Witness By: __[illegible|/s/

Senior Vice President

Date: _[illegible]

ATTEST: NATIONAL RAILROAD PASSENGER
By: _[illegible]/s CORPORATION
Witness

By: _[illegible]/s/
Assistant Vice President
Real Estate

Date: February 28. 1986

J.A. 241

EXHIBIT A

STATION l-

SH.

PENN STATION-NY 0
PRINCETON JUNCT. 9
TRENTON ]
PROVIDENCE 5
WILMINGTON 0
PENN STA.-BALT. 0

9

PENN STATION-NY
Vert.

Rolari

30TH STREET
30TH ST(NOT)
N. PHILADELPHIA
OVERBROOK
MERION
NARBETH
WYNNEWOOD
ARDMORE
HAVERFORD
BRYN MAWR
ROSEMONT
VILLANOVA
RADNOR

ST. DAVIDS
WAYNE
STRAFFORD

woouwun & © &ny Oo orF NHN FB CO SO

J.A. 242

2-
SH.
44

32

118

3- CLCKS DRMS OTHER

SH.
39

10

62D

o oOo o& ©&

oo oO OC O&O

34

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i)

— a — en — oe — ee — ee — ee — ee — 2 —~ 2 — 2 — ee — 2 ~~ ee — ee —

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1 Exh.

3 Island

1.A. 243 J.A. 244

STATION }- 2. 3- CLCKS DRMS OTHER PLAINTIFF’S EXHIBIT 4
SH. SH. SH. in ‘ PERMIT FOR
DEVON ate eee ADVERTISING DISPLAY FACILITY
BERWYN a a 0 0 (ADF)
a oe 0

DAYLESFORD ; , THIS PERMIT AGREEMENT is made this 15th day of
PAOLI | : 8.2 Ss August, 1980, by and between the NATIONAL RAILROAD
TOTAL 112 687 425 77 44

PASSENGER CORPORATION, a Corporation of the District
of Columbia, with offices at 400 North Capitol Street, N.W.,
Washington, D. C. 20001 (hereinafter called the “Permiitor”),
and TRANSPORTATION DISPLAYS INC., a Corporation of
the State of New York, with offices at 275 Madison Avenue,

New York, New York 10016, (hereinafter called the
“Permittee”).

1. GRANT

WITNESSETH, that for and in consideration of the pay-
ments, covenants and agreements hereinafter mentioned, stip-
ulated and contained, on the part of the Permittee to be paid,
kept and performed, Permittor does hereby permit the
Permittee to be the sole and exclusive advertising sales rep-
resentative for the advertising spectacular display hereinafter
described and to maintain, at Permittee’s sole cost and
expense, said advertising spectacular display (hereinafter
called the “facility”) for sale to advertisers, being 100 feet in
length by 10 feet in width situate over Permittor’s ticket
counter located on the west side of the Ticket Concourse of
Permittor’s Pennsylvania Station situate between Eighth and
Seventh Avenues, 31st to 33rd Streets, in the Borough of
Manhattan, City, County and State of New York.

J.A. 245

2. PURPOSE

The purpose of the Permittor in extending the permission
granted hereby is to have available at the location afore-
mentioned the services which the Permittee is authorized to
render hereunder, and with respect hereto the Permittee agrees

that it will conduct a first class operation and will furnish all
necessary equipment, personnel, supplies, materials and other
facilities therefor.

3. RESERVATION

Permittor hereby reserves unto itself and its licensees the
right and easement to maintain, repair and renew any pipe,
conduit, electric and communication lines, and any other
facilities of like character, as may now exist or may hereafter
be placed upon, under or over the facility, it being agreed that
this permit is subject and subordinate to any and all such
rights, easements and uses. Permittee shall occupy and use the
facility in a careful, safe and orderly manner so as not to
interfere in any way with the maintenance or operation of the
business of Permittor or of its licensees or with any structures
or facilities appurtenant to the business of Permittor or of its
licensees.

4. EFFECTIVE PERIOD

The effective period of this Permit is Five (5) years, com-
mencing on the First day of January 1980, and ending on the
Last day of December 1984, yielding and paying therefor to
Permittor, without any previous demand therefor, such fees,
additional charges and sums as hereinafter set forth at P.O.
Box 1582, Group No. 5, Washington, D- C. 20013, or at any
such other place as Permittor may from time to time
designate.

J.A. 246

5. TERMINATION

Permittor shall have the right to terminate this permit at any
time during the effective period hereof by giving to Permittee
at least Ninety (90) days prior written notice of intention so
to do in the event that the Permittor shall desire to use the
facility, or any portion thereof, either for itself or through
agreement with others for transportation or public service pur-
poses, or for construction, reconstruction, demolition, sale or
lease of that portion of the building of which the demised
premises constitute a part and upon the date of termination
specified in such notice this permit shall cease, terminate and
come to an end. In the event of the expiration or termination
of this permit, whether under the provisions of this Section
“5S”, or otherwise, Permittee shall peaceably quit and deliver
possession of the facility to Permittor on or before such date
of expiration or termination.

If the last day of the term of this permit falls on Sunday

this permit shall expire on the business day immediately
preceding.

6. COMPENSATION

The Permittee shall pay to Permittor from the date of com-
mencement of this permit fees which shall be equal to sixty-
five per centum (65%) of the monthly gross receipts of
Permittee from said facility; said fee to be paid in equal
monthly installments, on or before the fifteenth (15th) day of
each succeeding month during the continuance of this permit,
said payment to be accompanied by a true statement, signed
by Permittee’s chief financial officer, of Permittee’s gross
receipts during the preceding month in such form and detail
as the Permittor may request (Permittor reserves the right at
any time and from time to time to change said form and/or
request different or additional information); adjustments on
account thereof shall be made for the preceding year here-
under within thirty (30) days following the end of said yearly

J.A. 247

period. On or before such day, Permittee shall furnish
Permittor with a statement of its gross receipts for the said
yearly period attested to by Permittee’s chief financial officer
or by the Certified Public Accountant then under retainer by
Permittee for the audit of its books and records (if Permittee
shall have such public accountant then under retainer) or such
other person normally charged by the Permittee with such
responsibility for the audit or maintenance of Permittee’s
books and records.

The term “Gross Receipts” as used in this Permit shall
mean and include all gross revenue of Permittee, derived from
or attributable to the use, enjoyment or operation of the facil-
ity, including, without limitation, the following:

All gross revenues (i) for the use of facility under any use
Or occupancy agreements, written or oral and however
denominated (whether sub-lease, license, concession, fran-
chise, privilege or otherwise), from any persons, including
subtenants, licensees, concessionaires or otherwise, (ii) for
and in consideration of the cancellation, surrender or modi-
fication of any such agreement, (iii) for the admission to or
use of facilities forming a part of or appurtenant to the facil-
ity (iv) from the operation or use of the facility or any busi-
ness conducted thereon by Permittee and (v) all amounts paid
by advertisers or users of the facility to Government
Authorities or persons other than Permittee in discharge of
obligations of Permittee, whether or not arising out of or in
connection with the facility.

Provided however that “Gross Receipts” shall not mean or
include the following:

(1) Agency commissions, cash discounts, or fees paid to
collection agencies, excluding however commissions of any
kind of parent, subsidiary, or affiliated companies.

Permittee further covenants and agrees to pay to the
Permittor, as additional fees for the electric current and ven-
tilation furnished, a sum of Eight Hundred Thirty One and
78/100 Dollars ($831.78) per month commencing January I,
1980, said sum to be paid in advance on the first day of each

Se
ef sae

J.A. 248

and every month during the continuance of this agreement at
the office hereinbefore designated; provided, however, that
from time to time the amount of such additional fees shall be
reviewed and adjusted by the Permittor in accordance with
Permittee’s actual consumption of electricity and the rate
charged Permittor therefor.

If Permittor is entitled to an adjustment of the fees in accor-
dance with the above provisions, Permittor shall send a notice
to Permittee setting forth the new fees. Any delay of
Permittor in sending such notice shall not constitute a waiver
of or in any way impair the continuing obligation of Permittee
to pay such fee adjustments. In the event of an adjustment in
the fees applicable to the permit year in which this permit ter-
minates, the Permittee shall pay to the Permittor any addi-
tional fees owed for the months elapsed in such permit year
within fifteen (15) days after such notice.

7. RECORD KEEPING: AUDITS

Permittor shall have the right, at any time and from time to
time (but not after three (3) years subsequent to the expiration
of the pertinent permit year), to cause an audit of Permittee’s
operation of the facility to be made by Permittor’s Auditing
Department, an independent Certified Public Accountant, or
a firm of independent Certified Public Accountants or any
other agent of Permittor selected by Permittor, or any federal
agency including the General Accounting Office which has
the right to audit Permittor’s accounts, to verify the amount
of Permittee’s gross receipts reported by Permittee for any
permit year or portion thereof.

If such audit reveals an understatement of Permittee’s gross
receipts for the period in question and a consequent defi-
ciency in the payment of percentage fees, Permittee shall
forthwith pay the amount of such deficiency to Permittor, and
if such audit reveals an overpayment of percentage fees,
Permittor shall credit against the next monthly installment(s)
of fees falling due the amount of such overpayment; provided,

J.A. 249

however, that if the amount of any refund due Permittee here-
under exceeds the aggregate remaining installment(s) of fees
and Permittee has fully complied with all of the terms,
covenants, conditions and provisions to be performed by
Permittee under this permit and is not indebted to Permittor,
the amount of such excess shall be paid by Permittee within
thirty (30) days after Permittee has duly vacated the facility.
The cost of such audit shall be borne by Permittor unless such
audit reveals a deficiency of more than two percent (2%) or
Five Hundred Dollars ($500.00), whichever is the lesser, in
the percentage fees which should have been paid by Permittee
for the period in question, in which event Permittee shali pay
to Permittor on demand the costs of such audit and ten per-
cent (10%) of the amount so underpaid as additional fees.
Any payment, credit or refund to be made under this pro-
vision shall be without interest. The provisions of this
covenant shall survive the expiration or other termination of
this permit.

Permittee agrees to maintain and keep at its offices afore-
mentioned for a period of not less than three (3) years fol-
lowing the end of each permit year, records which shall show
annual gross receipts from the facility. For the period of three
(3) years following the expiration or earlier termination of
this permit, all of the records provided for hereunder shall be
made available to Permittor upon written demand therefor by
Permittor to Permittee, and to that extent the provisions of
this covenant shall survive the expiration of the term.

It is the purpose and intent of the Permittor and Permittee
that the annual fees shall be absolutely net to the Permittor, so
that this permit shall yield, to the Permittor, the fees herein-
before provided on the dates specified, and that all costs, fees,
interest, charges, expenses, reimbursements, and obligations
of every kind and nature whatsoever relating to the facility
(excepting any payments on account of any fee mortgage
which the Permittor may place upon the fee) which may arise
or become due during or out of the term if this permit shall be
paid or discharged by the Permittee as additional fees, and the

J.A. 250

Permittee hereby agrees to indemnify and hold Permittor
harmless from and against such costs, fees, interests, charges,
expenses, reimbursements, obligations and any interest
thereon. :

Permittee will also pay without notice, and without abate-
ment, deduction, or set off, except as may be required or per-
mitted by this permit, as additional fees, all sums, taxes,
assessments, costs, expenses, and other payments which the
Permittee in any of the provisions of this permit assumes or
agrees to pay, and in the event of any nonpayment thereof, the
Permittor shall have (in addition to all other rights, and reme-
dies) all the rights and remedies provided herein or by law in
the event of nonpayment of fees.

8. COVENANT TO PAY FEES

Permittee will pay all fees and additional fees when due,
without any setoff or deduction whatsoever, and any payment
or receipt thereof by Permittor or its agent of any amount less
than the full amount to which Permittor deems it is entitled
Shall not operate or be deemed to operate as a settlement or
Satisfaction of said fees or other amounts due, notwith-
Standing any statement or endorsement on the check or other
paper accompanying the payment, but Permittor shall be
deemed to have accepted said payment without prejudice and
subject to its right to collect the balance actually due, as well
as subject to any and all other rights available to Permittor by
law and under this permit agreement.

9. LATE PAYMENT

If Permittee does not pay fees or any additional fees here-
under on the day when the same shall become due -and
payable and such failure to pay fees or any additional fees
shall continue for a period of ten (10) days, Permittee shall
pay to Permittor, a service charge at the rate of twelve percent
(12%) per annum, or the highest rate allowed by law,

J.A. 251

whichever is the greater of the amount of such fees or any
additional fees or all of them for each month or portion of a
month that the same shall remain unpaid; provided, however,
that such service charge shall in no event, be less than Fifty
Dollars ($50.00) for any month or portion of a month that fees
or any additional fees shall remain unpaid. The provisions of
this paragraph shall not preclude Permittor from exercising its
options as set forth in any other Section of this permit
agreement.

10. ELECTRICITY AND VENTILATION

Permittor will allow use of existing electric current for
Permittee’s needs and allow use of ventilating equipment nec-
essary to exhaust heat generated by illumination of the facil-
ity; provided however, that Permittee shall provide all
ventilation equipment and modifications, if needed, to elec-
tric current solely at its own expense and cost. Permittee
agrees that Permittor shall not be liable for any failure to sup-
ply electric current or ventilation not due solely to its gross
negligence; provided however, that in event of any power fail-
ure wherein Permittee is obligated to grant a third-party
Advertiser a credit against fees or the cost of electricity con-
sumed, then Permittor shall grant the same credit to
Permitiee.

Perraittee shall give Permittor prompt written notice of any
accidents to or defects in electric wires, to be remedied by
Permittor with due diligence.

11. TAXES

The Permittee shall pay all taxes, license, certification,
permit and examination fees and excises which may be
assessed, levied, exacted or imposed on or against the facil-

ity or other property of the Permittee or the ownership, pos-—

session or use thereof, or on the Permittee’s operation
hereunder or on the gross receipts or income from such oper-

aT Mu sibed

J.A. 252

ation, and shall make all applications, reports and returns
required in connection therewith.

The obligation to make any payment pursuant to this
Article “11” shall survive the expiration, revocation, or ter-
mination of the effective period hereof.

Permittee shall, in addition to the foregoing, pay any new
tax of a nature not presently in effect or contemplated, but
which may be hereafter levied, assessed, or imposed upon the
Permittor or the facility, if such tax shall be based on or arise

out of the ownership, use, occupation or operation of the
facility.

12. LIMITED USE

Permittee shall not use or occupy the facility for any other
purpose whatsoever than: commercial advertising.

The statement in this permit as to the nature of the business
to be conducted by Permittee in the facility shall not be
deemed or construed to constitute a representation or warranty
by Permittor that such business that may be conducted in or
on the facility is lawful or permissible.

13. MAINTENANCE AND REPAIRS

Permittee has inspected and accepts the facility in its pre-
sent condition and agrees that no representations or warranties
with regard to condition, fitness for use or zoning of facility
have been made that are not specifically expressed herein;
and further agrees, at Permittee’s sole cost and expense, to put
and keep the facility in constant good order, repair and safe
condition; and further agrees upon the expiration or other ter-
mination of this permit, to peaceably quit and deliver control
of the facility to Permittor in like good order, repair and safe
condition, reasonable wear and tear expected.

Permittee further agrees that upon the termination of this
agreement, Permittee shall, at its sole cost and expense,
remove from the said facility all fixtures and equipment,

pe

J.A. 253

goods and property owned by it and restore the facility to a
condition satisfactory to Permittor; in case Permittee shall
neglect, or refuse so to do, Permittor shall have the right
forthwith to make such removal and restoration at the cost
and expense of Permittee, which cost and expense Permittee
hereby expressly agrees to pay on demand. and Permittee
hereby authorizes Permittor so to do, without being liable to
Permittee or to any other person or corporation, for any dam-
age or compensation or to any suit or action for or on account
of such removal and restoration.

Permittee further agrees that it shall, at its own cost and
expense, assume maintenance of the entire advertising display
and supporting structure and all facilities in connection there-
with, including, but not limited to ordinary and extra-ordinary
maintenance, cleaning, replacement lamps, supervision, all
display equipment including transparencies, front lighted
copy, lighting equipment and light fixtures, and all special
equipment and fixtures required.

Permittee further agrees for itself, its employees and
agents, that it will and they will place, remove and arrange
materials or property, and in general do any and all work
under this agreement, at such times and in such manner as in
no way to impede or interfere with the operations of
Permittor.

It is expressly agreed that should Permittor at any time at
its option make any repairs, renewals or alterations, same
shall not constitute a waiver of this covenant “13”, or any por-
tion hereof, or of any other provisions of this lease agreement,
or of any law or custom pertaining to Permittee’s obligations
relative to maintenance, repairs, renewals or alterations.

14. COVENANT AGAINST ASSIGNMENT

Permittee shall not assign or transfer this permit in whole

or in part, without the prior written consent of Permittor; and

Permittee shall not mortgage or otherwise encumber or per-
mit to be encumbered the facility or any part thereof, or any

J.A. 254

structures now or hereafter placed on the facility, without the
prior written consent of Permittor, and written consent to
assign or transfer this permit in whole or in part, or to mort-
gage or otherwise encumber the facility or any part thereof, or
any structures now or hereafter placed on the facility, shall
not be deemed as waiving this restriction except to the extent
of Permittor’s said written consent, or as giving assent to any
or further assignment, subletting, mortgaging or encum-
brancing. Any assignment or transfer by merger, consolida-
tion, operation of law or proceedings in equity, bankruptcy,
insolvency or reorganization, or any other transfer of a con-
trolling interest of the stock of Permittee to persons not now
in control, shall be deemed to be an assignment within the
meaning of this provision.

The term “assign”, as used herein, shall also include (i) an
assignment of a part interest in this permit, as well as any
assignment from one co-tenant to another; and (ii) an assign-

ment to any prior owner of tenant’s interest herein or part
thereof.

15. HAZARDOUS USE

Permittee shall comply with all regulations, recommenda-
tions, rules and requirements of Permittor, the local board of
fire underwriters and any insurance carrier which insures or
participates in insuring the facility and Permittee shall not
knowingly permit any article to be brought upon or any act to
be done upon or about the facility that will cause cancellation
of any policy of insurance thereon or increase rates for such
insurance beyond those usually charged for similar properties
used for the purpose herein authorized.

Without limiting the generality of the foregoing, Permittee
shall not use or keep gasoline in any form upon the facility, or
bring upon, store or allow to be stored upon the facility any
materials of a dangerous or highly flammable nature or of
such nature as to cause an extra fire risk or hazard, unless
otherwise specifically provided herein, and will comply with

J.A. 255

all such reasonable rules and regulations as Permittor may
prescribe looking to prevention of fires and compliance with
insurance contracts and policies.

Permittee will allow Permittor’s Insurance Department
Inspectors to periodically inspect the said facility when mak-
ing any fire inspection of the building which the same is a
part.

16. CLEANING AND SANITATION

Permittee shall keep the facility in a clean and sanitary con-
dition, including cleaning of floors, windows and lighting fix-
tures, and will cause all dirt, rubbish and other refuse matter
to be carefully collected and promptly disposed of in a man-
ner satisfactory to Permittor. The removal of said dart, rubbish
and other refuse matter shall be at the expense 6{Permittee
who shall employ only such cleaning, garbage and trash
removal contractors as may be approved by Permittor.

17. ORDINANCES

Permittee, at its sole cost and expense, shall comply with
and obey all laws, ordinances, rules, regulations and require-
ments of all Federal, State, Municipal, County, Town, Village

or other governmental authorities and the various departments —
thereof now existing or hereafter created, so far as the same

may affect the facility and make any corrections to the facil-
ity necessary to comply with said laws, ordinances, rules and
regulations and requirements, and will indemnify, defend and
save harmless Permittor from any failure on the part of
Permittee so to do.

18. SERVICE PERSONNEL

Permittee will provide sufficient personnel to ‘service and
maintain the facility.

J.A. 256

Permittee’s service personnel and those doing busincss with
Permittee shall at all times be neatly dressed, observe all reg-
ulations in effect at the facility, and conduct operations in an
orderly and proper manner so as not to annoy, disturb or be
offensive to others at the facility. In the event Permittor shall
object to the demeanor, conduct and appearance of the
employees and invitees of the Permittee, and of those doing
business with Permittee, Permittee will take all steps neces-
sary to remove the cause of the objection.

19. PARKING

The Permittee, its employees, invitees and others doing
business with Permittee shall have no right hereunder to park
vehicles at the Station beyond a reasonable loading or dis-
charging time, except in regular parking areas, if any, and

~ upon payment of the regular charges therefor.

All service personnel shall use the designated service

entrance and park service vehicles in the designated areas, if
any.

20. SIGNS AND ADVERTISING

Permittee shall not paint, post or display any sign or adver-
tisement on the said facility without the prior written approval
of Permittor and requirement for such approval shall extend
to the location, character, design, coloring and lettering of
such sign or advertisement.

21. ALTERATIONS AND REMOVALS

Permittee shall not make any alterations, additions or
improvements on or to the facility without the prior written
consent of Permittor, and all alterations, additions or improve-
ments which may be made by either Permittor or Permittee
upon the facility, unless herein otherwise provided, and

J.A. 257

except the personal property of Permittee which includes
movable furniture, furnishings, and equipment shall be prop-
erty of Permittor and shall remain upon and be surrendered
with the facility as part thereof at the expiration or other ter-
mination of this permit without disturbance, molestation or
injury.

22. PERMITTEE’S RESPONSIBILITY
TO ITS EMPLOYEES

~ Permittee, in the performance of any and all work by
Permittee under the terms of this permit or otherwise, upon or
adjacent to the facility, will furnish all labor and supervisory
forces of every kind and Permittee shall employ, pay from
Permittee’s own funds and have the right to discharge all per-
sons engaged in the performance of such work and all such
persons shall be and remain the sole employees of Permygtee
and subiect to Permittee’s exclusive supervision, direction
and control.

23. LIENS AND CHARGES

Permittee, within thirty (30) days after completion of any
construction, alterations, repair or improvement in or upon the
facility, shall furnish to Permittor, a detailed certified state-
ment of all labor and materials furnished and charges there-
for, together with evidence of payment of all such charges,
and a complete waiver and release of liens.

The creation or imposition of any lien or charge upon the
demised premises through acts or omissions of Permittee, its
agents, contractors or sub-contractors shall be deemed a
default under the provisions of this permit.

In the event any such lien or charge shall not be paid or
bonded by Permittee within fifteen (15) days after the lien
or charge accrues, Permittor shall have the right to pay such
lien or charge and Permittee shall repay the cost to Permittor,
as additional fees hereunder, with interest at twelve percent

J.A. 258

(12%) per annum or the highest interest allowable by law,
whichever is the greater from the date of payment by
Permittor, promptly upon rendition of a bill therefor. Nothing
in this paragraph or in any other paragraph of this permit shall
be deemed or construed as authority to Permittee to create any
lien on the Permittor’s interest in the facility.

24. INDEMNIFICATION

Permittee will be responsible for and will indemnify, save
harmless and defend Permittor against and from any and all
claims and suits for, and any and all liability, loss or expense
arising from or incidental to or in connection with, damage to
or loss of property of Permittor, Permittee, or of agents, ser-
vants, licensees, contractors, invitees or employees of either,
or of any other person, and against and from any and all
claims and suits for, and any and all liability, loss or expense
arising from or incidental to or in connection with, injury to
or death of persons, including agents, servants, contractors,
licensees, invitees or employees of Permittor or of Permittee,
or any other person (including Permittee if a natural person),
which said damage, loss, injury or death shall arise in any
manner, directly or indirectly, out of or incidental to or in
connection with, this permit or the facility, or the use or occu-
pation thereof, including any appurtenant sidewalks or
driveways.

Permittee specifically agrees to relieve Permittor of any and
all liability for damage to contents of the facility owned by or
in the custody of Permittee, or improvements therein owned
by or in the custody of Permittee, whether damaged by fire
and extended coverage perils or other causes.

The term “Permittor” as used in this Section “24”, shall
include not only Permittor specifically named herein, but also
any licensees, contractors or corporate affiliate of Permittor.

J.A. 259

25. LOSS OR DAMAGE

Permittor shall not be liable to Permittee for any loss,
injury or damage which may happen to the person (if Per-
mittee is natural person) or property of Permittee, of
Permittee’s employees or of persons claiming under Per-
mittee, while on.or about the facility, caused by theft, fire, or
by the handling of electrical installations, or by accident to
or breakage of any of the machinery, piping or plumbing, fix-
tures or other appurtenances connected with any building or
by water, rain or snow which may leak into, issue or overflow
from any part of any such building.

26. INSURANCE

Permittee shall, at its own expense, procure and keep in
force at all times during the term of this permit, insurance of
the following types and amounts: Comprehensive Public
Liability insurance in an amount of not less than Five
Hundred Thousand Dollars ($500,000.) for personal injury to
any one person; One Million Dollars ($1,000,000.) for per-
sonal injuries arising out of any one accident or occurrence
and One Hundred Thousand Dollars ($100,000.) for property
damage.

Permittee, if requested by Permittor at any time or times,
shall provide and maintain in effect during the term hereof,
fire and extended coverage and vandalism and malicious mis-
chief insurance on the facility and any and all structures and
improvements thereon, protecting Permittor in limits, carri-
ers and form acceptable to Permittor and Permittee shall also
provide and maintain in effect during the term hereof, cov-
erage against such other hazards as Permittor may from time
to time require.

All insurance shall be in the name of Permittee with con-
tractual liability endorsement identifying the permit location,
principals, date, and quoting verbatim the liability assumed
by Permittee. The insurance shall be placed with insurance

J.A. 260

companies licensed to do business in the state where the facil-
ity is located and if approved by Permittor. Permittee shall
furnish Permittor with a certificate, or certificates, issued by
the insurance carrier(s) evidencing such insurance including
a waiver of subrogation against Permittor and reciting the
contractual liability assumed by Permittee. Each policy shall
provide that it shall not be cancelled or materially changed
unless at least thirty (30) days” prior written notice of can-
cellation or change shall have been mailed by the insurance
carrier to Permittor at the address designed in Article “4”
hereof. All policies of insurance shall be subject to inspection
by Permittor at any time.

Policy or policies of fire, extended coverage or other insur-
ance on property of Permittee or in the Permittee’s care and
custody shall contain a waiver of subrogation against
Permittor.

Permittee shall furnish to Permittor complete copies of all
such insurance policies with evidence of payment of prem1-
ums therefor upon request of Permittor. All such policies shall
be endorsed to provide not less than thirty (30) days’ notice
to Permittor of any cancellation thereof and of any material
change in coverage.

The providing of said insurance coverages shall not be
deemed a limitation on the liability of Permittee as provided
in this permit, but shall be additional security therefor.

Each and every year on the First (1st) day of January,
Permittee shall furnish Permittor with a certificate or cer-
tificates, issued by the insurance carrier(s) with evidence of
payments of premium(s).

The failure by the Permittee at any time to procure and/or
maintain the above stated insurance will constitute a default
under Article “31” hereof and Permittor may terminate this
permit.

J.A. 261

27. THIRD-PARTY ADVERTISEMENTS

Before any binding contract is entered into and any adver-
tisement is emplaced or installed, Permittee shall submit all
third-party advertisements to the Permittor for its written
approval of the following: the size or dimension, nature of
product to be advertised, form, nature, style, wording and
contents of the advertisement.

Without limiting the scope of its right to disapprove any
advertising which Permittor in its sole judgment considers
should not be accepted or installed by Permittee, Permittor
makes the reservations contained herein to preclude any
advertising that, in its judgment, may be unlawful, immoral,
improper or offensive to good taste, or be in competition
directly or indirectly with the transportation conducted by
Permittor or its affiliated companies; or involve political or
other views which could result in dissension or involve
Permittor in dissension, complaints or controversy with its
patrons or the public or involve matters or ramifications not
now anticipated or foreseeable.

Permittee shall provide in its contracts with its third-party
advertisers that notwithstanding the fact that Permittor and
Permittee may have permitted the advertising to be placed on
Permittor’s property as herein provided, Permittor has
reserved the right and shall have the right to cause to be
removed forthwith without liability to Permittee or its third-
party advertiser any advertisement which in the judgment of
Permittor is or might be deemed to be slanderous, libelous,
unlawful, immoral, offensive to good taste, involves illegal
competition or trade practices, infringement of trademarks,
trade names, violates rights or privacy, infringement of copy-
rights or proprietary rights. 3

Permittee, as part of its obligation under Article “26”
to provide insurance against liability of Permittor, shall in
addition thereto provide insurance against any action against
itself or Permittor in the nature of defamation, libel, slander,

Bi

J.A. 262

invasion of privacy or the like in the same amounts and under
the same conditions as provided in Article “26”

28. FIRE CLAUSE

If the facility and/or the location(s) wherein the equipment
is placed or installed shall be so damaged by fire or other
cause without the fault or neglect of Permittee, Permittee’s
servants, employees, or agents, so as to render the facility
and/or the location(s) unuseable for Permittee’s operations,
then either party may terminate or revoke, this permit upon
ten (10) days’ prior written notice to the other, and neither
party shall incur any liability or have any claims against the
other by reason of such termination except for such sums due
and owing to Permittor from Permittee prior to the date of ter-
mination or revocation; provided, however, if such damage is
due to the fault of Permittee, Permittee’s servants, employees,
Or agents, the damage shall be repaired by or at the
Permittee’s expense and fees payable during the period of dis-
repair shall not be less than the average monthly fees due or
paid Permittor over the preceding six-month period.

29. CONDEMNATION

If the whole or any part of the facility shall be taken for any
public or quasi-public use, under any statute or by right of
eminent domain or private purchase in lieu thereof by a pub-
lic body vested with the power of eminent domain, then, when
control shall be taken thereunder of the facility, or any part
thereof, the term herein granted and all rights of the Permittee
hereunder shall immediately terminate, and Permittee shall
have no claim against Permittor for the value of any unex-
pired term of this permit.

J.A. 263

30. DEFINITIONS

The word “Permittee” as used herein shall be construed to
include the plural as well as the singular and the necessary
grammatical changes required to make the provisions hereof
apply either to corporations or other forms of business asso-
ciation or to an individual or individuals, masculine or fem-
inine, in all cases shall be assumed as having been made
herein as though herein fully expressed.

The term “Permittor” as used in this permit, means only the -

owner or the mortgagee in possession for the time being of
the land and building (or the owner of a lease of the building
or of the land and building) of which the facility forms a part
so that in the event of any sale or sales of said land and build-
ing or of said permit, or in the event of a lease of said build-
ing, or of the land and building, the said Permittor shall! be
and hereby is entirely freed and relieved of all covenants and
obligations of Permittee hereunder.

The words “re-enter” and “re-entry” as used in this permit
are not restricted to their technical legal meaning.

The word “period” as used in this permit shall include any
preliminary period and/or any extension, renewal, or contin-
ued period or periods except where expressly excluded.

The term “permit year” as used herein shall be the period of
one year’s duration commencing on the first day when
Permittee becomes obligated to pay fees and each successive
period of one year’s duration commencing on the anniversary
of the first day when Permittee becomes obligated to pay fees.

The term “additional fees” as used herein shall be all costs
and expenses other than fixed fees which Permittee assumes
or agrees to pay pursuant to this permit.

31. DEFAULT

If default shall be made in Permittee’s covenants herein to
pay fees or additional fees, or if default shall be made in any
other covenants and agreements herein contained on the part

J.A. 264

of Permittee to be kept or performed, and if any such default
shall not be cured within thirty (30) days after Permittee has
been given written notice by Permittee to do so, or if the
facility shall not be used by Permittee for the purposes herein
authorized for a period of more than thirty (30) days, or if the
facility should at any time be used for purposes other than as
herein permitted, or if Permittee shall file or suffer to be filed
against it a petition in bankruptcy, or if Permittee shall have
an order for relief entered against it according to bankruptcy
law, or if a receiver or trustee be appointed for the property of
Permittee, or if Permittee shall make a general assignment for
the benefit of creditors, then, in any of such cases, Permittor
may, by written notice to Permittee immediately declare this
permit terminated, and in such event, in addition to any other
action or remedy which Permittor may have at law or in
equity to recover damages or otherwise by reason of a breach
by Permittee of provisions of this permit, Permittor shall have
the right to remove Permittee by summary proceedings and
thereafter Permittor may re-enter upon and take control of the
facility and every part thereof, either by force or otherwise,
without being liable to any prosecution, action or damages
therefor and have and enjoy the facility as of its former estate
free, clear and discharged of this permit and of all rights of
Permittee hereunder; and all buildings, structures, improve-
ments, materials and personal property owned, erected or
placed upon the facility by or for Permittee or acquired by
Permittee from a prior occupant, shall thereupon be and
become the property of Permittor and may be sold or retained
by Permittor or may be removed or demolished by Permittor
at the sole cost and expense of Permittee, which cost and
expense Permittee shall pay to Permittor upon demand; and
Permittee also shall pay to Permittor upon demand all fees
and expenses, including reasonable attorneys fees, incurred in
connection with and in obtaining contro) of the facility as
aforesaid. aes od

Upon termination of this permit by Permittor under the
default provisions of this permit agreement, all fees for the

———

J.A. 265

remainder of the term of this permit, or for the remainder of
any continued term hereof, shall be due and payable forthwith
and Permittor may proceed according to law to collect the
same and may subcontract the facility and receive and retain
fees therefor and Permittee shall pay to Permittor any defi-
ciency between the fees hereby reserved, including additional
fees, and the fees collected for each month of the period
which would otherwise have constituted the balance of the
term of this permit or of any continued term hereof.

. The receipt by or on behalf of Permittee of any fees or
additional fees with or without knowledge of any breach of
any of the terms, covenants or conditions of this permit agree-
ment, shall not be deemed a waiver of such breach, nor shall
such receipt be deemed a withdrawal of any notice given to
Permittee under the terms of this permit agreement, nor shall
such receipt be deemed a reinstatement or reestablishment of
this permit or any portion thereof after termination or can-
cellation, nor shall the termination or other cancellation of
this permit agreement or any portion thereof waive the obli-
gation of Permittee to pay or discharge any fees, additional
fees, taxes or other obligations accruing under this permit
agreement.

Permittee hereby waives and relinquishes unto and in favor
of Permittor the operation of all laws which do now or here-
after may exempt any property on the facility or any property
in any way belonging to Permittee, whether on the facility or
elsewhere, from levy and sale upon distress for rent or upon
execution of any judgment obtained in an action brought for
non-payment of any fees or additional fees hereunder or for
breach of any other provisions hereof. The parties hereto shall
and do hereby waive trial by jury in any action, proceeding or
counter-claim brought by either party against the other on any
matter whatsoever arising out of or in any way connected with
this permit or Permittee’s use of and occupancy of the facil-
ity or arising out of or in any way connected with any claim
of injury or damage arising out of or in connection with this
permit or such use or control. Permittee hereby expressly

J.A. 266

_ Waives any and all rights of redemption granted by or under

any present or future laws in the event of Permittee being
evicted or dispossessed for any cause or in the event of
Permittor obtaining control of facility by reason of the vio-

lation by Permittee of any of the covenants and conditions of
this permit or otherwise. ao

-~

32. REMOVAL

Upon the expiration of the term hereof, or upon any other
termination of this permit for reasons other than default on the
part of Permittee, or upon default if required by Permittor
Permittee at sole cost and expense, shall remove from the
facility any materials not owned by Permittor, and all waste
rubbish and debris; and restore the premises to as good con-
dition as they were in before such property was erected or
placed thereon; and all such work of removal and restoration
shall be cpmpleted on or before the expiration or other ter-
mination of this permit. Should Permittee fail, neglect or
refuse to so remove such property and make the aforesaid
restoration, then and in such event Permittor shall have the
following rights, which are hereby expressly given it, viz.: to
remove such property and to make the aforesaid restoration
all at the expense of Permittee, which expense Permittee
hereby expressly agrees to pay promptly upon demand, or to
sell any of such property and retain the proceeds of such sale
and to deliver such property to the purchaser or purchasers
thereof free and clear of any right, title or interest therein of
Permittee or of any person or corporation claiming through or
under Permittee or of any person or corporation claiming
through or under Permittee and without any liability what-
soever to Permittee or to any other person or corporation; or
if Permittor so elects, in lieu of such sale or removal of any of
such property, Permittor may retain and use the same for any

purpose whatsoever free and clear of any right, title or inter-
est therein of Permittee or of any person or corporation claim-

J.A. 267

ing through or under Permittee and without any liability what-
soever to Permittee or to any other person or corporation.

33. DEFAULT REMEDIES

The actions and remedies provided in this permit in event
of default shall not be deemed exclusive but shall be in addi-
tion to all other actions and remedies at law or in equity in
event of any such default; and no action or remedy taken or
omitted by Permittor in event of default shall be deemed a
waiver of such default and waiver of a particular default shall
not be deemed a waiver of any other default or a waiver of the
same default again occurring, nor shall any failure on the part
Permittor to compel a fulfillment of any one or more of the
covenants, terms and conditions herein contained be held to
be a waiver of its right to enforce the same at any time there-
after during the term of this permit.

34. EQUAL OPPORTUNITY AFFIRMATIVE ACTION:
NON-DISCRIMINATION

During the term of this permit the Permittee covenants and
agrees to conform and comply (where and when applicable)
with each and every term and condition outlined on Exhibits
“A”, and “B” which are attached hereto and made a part
hereof. The terms “Permittor” and “Permittee” shall be sub-
stituted for “Lessor” and “Lessee,” respectively, whenever the
same appear in Exhibits “A” and “B”. It is agreed that the
Permittee’s non-compliance with the provisions of this clause
shall constitute a default under Article “31” hereof and the
Permittor may terminate this permit, or may pursue such other
remedies as may be provided by law.

35. INABILITY TO PERFORM

This permit and obligation of Permittee to pay fees and/or
additional fees hereunder and to keep and perform all other

J.A. 268

covenants and agreements hereunder on part of Permittee to
be kept or performed shall in no way be affected, impaired, or
excused because Permittor is unable to fulfill any of its obli-
gations under this permit, or is unable to supply, or because
Permittor is delayed in supplying any service expressly or
impliedly to be supplied by Permittor, or is unable to perform,
or because Permittor is delayed in performing, any work or
service for which it is liable hereunder, if Permittor is pre-
vented or delayed from so doing by reason of labor troubles
or any outside cause beyond control of Permittor, including,
but not limited to, governmental action or preemption, act of
God, war or civil commotion or unrest.

36. SUBORDINATION

This permit is subject and subordinate to any and all ground
or underlying leases and to any and all mortgages which may
now or hereafter affect such leases or the real property of
which the facility forms a part, and to all renewals, modifi-
cations, consolidations, replacements and extensions thereof.
This clause shall be self-operative and no further instrument
of subordination shall be required by any mortgagee; how-
ever, in confirmation of such subordination, Permittee shall
execute promptly any certificate to that effect upon request by
Permittor. Permittee hereby constitutes and appoints Permittor
as Permittee’s attorney-in-fact to execute any such certificate
or certificates for and on behalf of Permittee.

37. SUCCESSORS AND ASSIGNS

The covenants and agreements herein contained shall inure
to the benefit of and be binding upon the successors, heirs,
executors, administrators, and assigns of the parties hereto
respectively, provided, however, that this permit shall not be
assigned by Permittee without the prior written consent of
Permittor.

J.A. 269

38. NOTICES

Except as otherwise in this permit provided, a bill, state-
ment, notice or communication which Permittor may desire,
or be required to give to Permittee, shall be sufficiently given
or rendered if in writing, delivered to Permittee personally or
sent by registered or certified mail addressed to Permittee at
275 Madison Avenue, New York, New York 10016 or at any
such address as Permittee shall designate by written notice,
and the time of the rendition of such bill or statement and of
the giving of such notice or communication shall be deemed
to be the time when the same is delivered to Permittee, or
mailed, as herein provided. Any notice by Permittee to
Permittor must be sent by registered or certified mail
addressed to National Railroad Passenger Corporation, Real
Estate Department at 400 North Capitol Street, N.W.,
Washington, D. C. 20001 or at any such other address as
Permittor may designate by written notice.

39. INTEGRATION

No change or modification of any of the covenants, terms
or provisions hereof shall be valid unless in writing and
signed by the parties hereto.

There are no understandings or agreements of any kind
between the parties hereto, verbal or otherwise, other than as
set forth in this permit.

This permit, including exhibits, if any, constitutes the entire
agreement between Permittor and the Permittee on the subject
matter hereof.

40. NOT A JOINT VENTURE

This permit shall not be deemed or construed as appointing
the Permittee, the agent or representative of Permittor for any
purpose whatsoever. Neither a partnership nor any joint ven-
ture is hereby created, notwithstanding the fact that all or a

J.A. 270

portion of the fees to be paid hereunder may be determined by
gross receipts from the operations of the Permittee hereunder.

41. NO WAIVER

The failure of Permittor to seek redress for violation of, or
to insist upon the strict performance of, any covenant or con-
dition of this permit, or any of the Rules and Regulations
hereinafter adopted by Permittor shall not prevent a subse-
quent act, which would have originally constituted a viola-
tion, from having all the force and effect of an original
violation. The receipt by Permittor of fees with knowledge of
the breach of any covenant of this permit shall not be deemed
a waiver of such breach.

42. RULES AND REGULATIONS

The Permittee shall observe and obey (and compel its offi-
cers, employees, guests, invitees, and those doing business
with it to observe and obey) the rules and regulations of
Permittor now in effect, if any, and such further rules and reg-
ulations which may from time to time during the effective
period of this permit, be promulgated by Permittor.

43. SEVERABILITY

The provisions of this permit are severable and it is the
intention of the parties hereto that if this permit cannot take
effect in its entirety because of the final judgment of any
court of competent jurisdiction holding invalid any part or
parts thereof, the remaining provisions of the lease shall be
given full force and effect as completely as if the part or parts
held invalid had not been included therein.

J.A. 271

44. PARAGRAPH CAPTIONS

Paragraph captions used herein are placed for reading con-
venience and shall not have any other meaning, implication or
purpose, legal or otherwise.

45. EXTENT REQUIRED BY LAW

To the extent required by law, this permit shall be subject
to the approval, if necessary, of any State Commerce
Commission, Board of Public Utility Commissioners, Public
Service Commission or any such State body as may have
jurisdiction.

46. NOT STRICTLY CONSTRUED

This permit shall not be strictly construed against the
Permittor or Permittee. No remedy or election given by any
provision of this permit shall be deemed exclusive unless so
indicated, but each shall, wherever possible, be cumulative
with all other remedies in law or equity unless otherwise
specifically provided. Each provision hereof shall be deemed
both a covenant and a condition and shall run with the land.

47. WORDS OF OBLIGATION

Whenever in this permit agreement any words of obligation
or duty are used, such words or expressions shall have the
same force and effect as though made in the form of
covenants.

48. FORCE MAJEURE

This obligation of the Permittor hereunder shall be subject
to Force Majeure which shall include but not be limited to
labor troubles.

J.A. 272

49. LAW GOVERNING

This agreement shall be governed by the laws of the
District of Columbia.

50. TIME OF THE ESSENCE

Time and specific performance are each of the essence in
this permit.

51. ENVIRONMENTAL

Permittee shall comply with all environmental regulations
issued by Federal, State or Local Environmental Agencies,
hereinafter called “Agencies”, and shall maintain the facility
according to environmental standards set by such agencies,
including, bui not limited to, water, air and noise standards.
In the event Permittee fails to maintain the facility according
to standards set by an agency and if, after giving reasonable
notice of the failure to Permittee, Permittor acts to bring the
facility into compliance, Permittee shall repay Permittor for
all costs incurred by Permittor in abating a violation of such
standards, and paying any fine or assessment levied as a result
of violation of such standards, including, but not limited to,
consulting, engineering, construction and legal costs. Per-
mittee shall further indemnify, defend and save harmless
Permittor from any claim of a violation of environmental
Standards resulting from Permittor’s use of the facility,
whether brought by an agency, a private citizen, or in a court
procedure; and Permittee shall, at its cost, respond to all such
claims for its benefit and for the benefit of Permittor.

52. REFUND

In the event of termination of this permit by Permittor for
any cause other than default or failure to comply with the

J.A. 273

terms of this permit by Permittee and if fees shall have been
paid by Permittee in advance to a day subsequent to the date
of such termination of this permit, then Permittor shall refund
and repay to Permittee and Permittee shall receive and accept
as full payment for all loss, damages, and demands occa-
sioned by such termination of this permit, the apportioned
amount of the term so avoided, except that no refund will be
made of any amount less than Fifty Dollars ($50.00).
Permittee shall remain liable for the payment of real estate
taxes and other charges assessed or imposed upon Permittee’s
buildings or improvements or in connection therewith which
may have accrued to date of such termination, and other taxes
and assessments which Permittee is obligated to pay as addi-
tional fees hereunder shall be prorated to the date of termi-
nation.

Permittor shall not be obligated to reimburse Permittee for
any expenditure by Permittee for construction of improve-
ments, or for alterations, on or to the facility and Permittee
hereby expressly waives any claim against Permittor for such
reimbursement.

53. EXECUTION OF AGREEMENT BY LESSOR

It is understood and agreed between the parties hereto that
execution of this Agreement by Permittee, and negotiation of
any check or other negotiable instrument by Permittor, prior
to the date of execution of this agreement by Permittor, shall
in no way be deemed or construed by Permittee to be accep-
tance of this agreement by Permittor. In the event that this
agreement is not executed by Permittor for any reason what-
soever, then and in that event the amount set forth in any such
check or other negotiable instrument shall be refunded to
Permittee within a reasonable period of time after written
notification that this agreement will not be executed by
Permittor; provided, however, that the payment by Permittee
of a preparation fee, if any, to Permittor shall be nonrefund-
able and made as fu!l payment for the Permittor’s preparation

J.A. 274

of this document without regard to whether or not same is
ever executed.

IN WITNESS WHEREOF, the parties hereto have caused
these presents to be executed by their proper officers, thereto
duly authorized, day and year first above written.

WITNESS: NATIONAL RAILROAD PASSENGER

B MaciEe CORPORATION

By: KURT WEISSHEIMER |
Kurt Weissheimer
TITLE: Assistant Vice President—

Real Estate
WITNESS: TRANSPORTATION DISPLAYS, INC.
__ BERTON MILLER By: JULIAN G. PIZZANO

TITLE: Executive Vice President/
General Manager

J.A. 275

EXHIBIT ‘A’

EQUAL OPPORTUNITY

During the performance of this Agreement, the Lessee agrees
as follows:

(a) The Lessee will not discriminate against any employee
or applicant for employment because of race, color, religion,
sex, age, or national origin. The Lessee will take affirmative
action to ensure that applicants are employed, and that employ-
ees are treated during employment, without regard to their
race, color, religion, sex, age, or national origin. Such action
shall include, but not be limited to, the following; employ-
ment, upgrading, demotion, or transfer; recruitment or recruit-
ment adverting; layoff or termination; rates of pay or other
forms of compensation; and selection .for training, including
apprenticeship. The Lessee agrees to post in conspicuous
places, available to employees and applicants for employ-
ment, notices setting forth the provision of this Equal
Opportunity clause.

(b) The Lessee will, in all solicitations or advertisements
for employees placed by or on behalf of the Lessee, state that
all qualified applicants will receive consideration for employ-
ment without regard to race, color, religion, sex, age, OF
national origin.

(c) The Lessee will send to each labor union or represen-
tative of workers with which lessee has a collective bargain-
ing agreement or other contract or understanding, a notice
advising the labor union or workers representative of the
Lessee’s commitments under this Equal Opportunity clause,
and shall post copies of the notice in conspicuous places
available to employees and applicants for employment.

(d) The Lessee will comply with all provisions of Executive
Order No. 11246 of September 24, 1965, as amended by
Executive Order No. 11375 of October 13, 1967, and of the

J.A. 276

rules, regulations and relevant orders for the Secretary of
Labor.

(e) The Lessee will furnish all information and reports
required by Executive Order No. 11246 of September 24,
1965 as amended by Executive Order No. 11375 of October
13, 1967, and by the rules, regulations and orders of the
Secretary of Labor, and pursuant thereto and will permit
access to his books, records, and accounts by the contracting
agency and the Secretary of Labor for purposes of investi-

gation to ascertain compliance with such rules, regulations
and orders.

(f) In the event of the Lessee’s noncompliance with the
Equal Opportunity clause of this Agreement or with any of
the said rules, regulations, or orders, this Agreement may be
canceled, terminated, or suspended, in whole or in part, and
the Lessee may be declared ineligible for further contracts in
accordance with procedures authorized in Executive Order
No. 11246 of September 24, 1965 as amended by Executive
Order No. 11375 of October 13, 1967, or by rule, regulation,

or order of the Secretary of Labor, or as otherwise provided
by law.

(g) The Lessee will include the provisions of paragraphs
(a) through (g) in every subcontract or purchase order unless
exempted by rules, regulations, or orders of the Secretary of
Labor issued pursuant to section 204 of Executive Order No.
11246 of September 24, 1965, as amended by Executive Order
No. 11375 of October 13, 1967, so that such provisions will
be binding upon each subcontractor or vendor. The Lessee
will take such action with respect to any subcontract or pur-
chase order as the contracting agency may direct as a means
of enforcing such provisions, including sanctions for non-
compliance: provided, however, that in the event the Lessee
becomes involved in, or is threatened with, litigation with a
subcontractor or vendor as a result of such direction by the
contracting agency, the Lessee may request the United States
to enter into such litigation with a subcontractor or vendor as

J.A. 277

a result of such direction by the contracting agency, the
Lessee may request the United States to enter into such liti-
gation to protect the interests of the United States.

J.A. 278

EXHIBIT ‘B’

AFFIRMATIVE ACTION

(a) The Lessee agrees to use its best efforts to achieve
minority employment within its total work force, including its
associates and subcontractors. For purposes.of this clause, (a)
“minority employment” means employment of minority group
members as hereinafter defined.

(b) The Lessee agrees to use its best efforts to carry out
this policy in the award of its subcontracts, if any, to the
fullest extent consistent with the efficient performance of this
Agreement. As used herein, the term “minority business
enterprise” means a business organization having at least fifty
(50%) percent of its equity (exclusive of any equity interest
held by any governmental agency) owned by minority group
persons, or where less than fifty (50%) percent, the organi-
zation is controlled by such persons or such other organiza-
tions as the Amtrak determines to be a bona-fide minority
business organization.

(c) The Lessee shall meet the requirements of 49CFR 265.7
which are as follows:

(1) As a condition to receiving Federal financial assistance
under the Railroad Revitalization and Regulatory Reform Act
of 1976 (“Act”), or the provisions of the Regional Rail
Reorganization Act of 1973, as amended (45 U.S.C. 701 et.
seq.) or the Rail Passenger Service Act of 1970 as amended
(45 U.S.C. 501 et. seq.) amended by the Act, (collectively
called, together with the Act, the “Rails Acts”), the Lessee
hereby agrees to observe and comply with the following:

(i) No person in the United States shall on the grounds
of race, color, national origin, age, or sex be excluded from
participation in, or denied the benefits of, or be subjected to
discrimination under, any project, program, or activity funded
in whole or in part through such assistance.

J.A. 279

(2) The following specific discriminatory actions are pro-
hibited:

(i) A Lessee under any project, program or activity to
which these clauses apply shall not, directly or through con-
tractual or other arrangements, on the grounds of race, color,
national origin, age, OF sex:

(A) Deny a person any service, financial aid, or other
benefit provided under such project, program or activity;

(B) Provide any service, financial aid, or other bene-
fit to a person which is different, or is provided in a different
manner, from that provided to others under such project, pro-
gram or activity;

(C) Subject a person to segregation or separate treat-
ment in any matter related to his receipt of any service, finan-
cial aid or other benefit under such project, program and
activity;

(D) Restrict a person in any way in the enjoyment of
any advantage or privilege enjoyed by others receiving any
service, financial aid or other benefit under such project, pro-
gram or activity;

(E) Deny a person an opportunity to participate in
such project, program or activity through the provision of ser-
vices or otherwise or afford him/her an opportunity to do so
which is different from that afforded others under such pro-
ject, program or activity.

(ii) A Lessee, in determining the types of services, finan-
cial aid, or other benefits, or facilities which will be provided
under any such project, program or activity or the class of
persons to whom, or the situations in which such services,
financial aid, other benefits, or facilities will be provided
under any such project, program or activity, or the class of
persons to be afforded an opportunity to participate in any
such project, program or activity shall not, directly or through
contractual or other arrangements, utilize criteria or methods

J.A. 280

of administration which have the effects of subjecting persons
to discrimination because of their race, color, national origin,
age, or sex, or have the effect of defeating or substantially
impairing accomplishment of the objectives of the project,
program or activity, with respect to individuals of a particu-
lar race, color, national origin, age, or sex.

(iii) In determining the site or location of facilities, a
Lessee shall not make selections with the purpose or effect of
excluding persons from, denying them the benefits of, or sub-
jecting them to discrimination under any project, program or
activity to which these clauses apply on the grounds of race,
color, national origin, age, or sex, or with the purpose or
effect of defeating or substantially impairing the accom-
plishment of the objectives of these clauses.

(iv) The Lessee shall not discriminate against any
employee or applicant for employment because of race, color,
national origin, age, or sex. Except as otherwise required by
the regulations or orders of Lessor, the Lessee shall take affir-
mative action to insure that applicants for employment are
employed, and that employees are treated during employment,

~ without regard to their race, color, national origin, age, Or sex.
Such action shall include, but not be limited to, the following:
employment, promotion, demotion, transfer, recruitment or
recruitment advertising, layoff or termination, rates of pay or
other forms of compensation, and selection for training,
including apprenticeship. The Lessee agrees to post in con-
spicuous places, available to employees and applicants for
employment, notices setting forth the provisions of these
nondiscrimination clauses. The Lessee understands and agrees
that it shall not be an excuse for the Lessee’s failure to pro-
vide affirmative action that the labor organizations with
which the Lessee has a collective bargaining agreement failed
or refused to admit or qualify minorities for admission to
the union, or that the provisions of such agreements other-

wise prevent Lessee from implementing its affirmative action
program.

J.A. 281

(V) The Lessee shall not discriminate against any
business organization in the award of any contract because of
race, color, national origin, age, or sex of its employees, man-
agers or owners. Except as otherwise required by the regu-
lations or orders of the Lessor, the Lessee . shall take
affirmative action to insure that business organizations

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40385013_0502%3A06. Public record. Not legal advice.
