Document:

EXHIBIT   10.9
        Portions  of this exhibit have been  omitted and filed  separately  with
                  the Securities and Exchange Commission.
                   These portions are designated "[ * * * ]."

                        RIGHT OF WAY OPERATING AGREEMENT

                               dated as of   March 30, 2000

                                     between

                            CSX TRANSPORTATION, INC.
                     A VIRGINIA CORPORATION, FOR ITSELF AND
                   AS OPERATOR FOR NEW YORK CENTRAL LINES LLC,
                      A DELAWARE LIMITED LIABILITY COMPANY
         AND A WHOLLY-OWNED SUBSIDIARY OF CONSOLIDATED RAIL CORPORATION,
                           A PENNSYLVANIA CORPORATION

                                       and

                        PATHNET TELECOMMUNICATIONS, INC.,
                             A Delaware corporation

                                        1
<PAGE>

                                TABLE OF CONTENTS

ARTICLE                                                                     PAGE

1.   Certain Definitions
2.   Grant of License
3.   Limitation of Rights; Railroad's Use Rights
4.   Planning, Installation and Implementation
5.   Permits
6.   Fouling Track; Safety Rules
7.   Track Use; Clearances; Crossings
8.   Flagging; Watchmen
9.   Facility Location Signs
10.  Maintenance of Rail Corridor, Facilities
11.  Railroad Approvals; Admissions
12.  Railroad Expenses; Employee Costs
13.  Liens and Encumbrances
14.  Taxes
15.  Sites for Non-Cable Facilities
16.  Independent Contractor Status
17.  Liability; Indemnity
18.  Insurance
19.  Notices
20.  Relocations; Alterations
21.  Line Sales; Abandonment
22.  Condemnation
23.  Pathnet Discontinuance
24.  Railroad's Right to Require Suspension of Activities; Failure to Make
     Timely Payment
25.  Liaison; Coordination and Disputes Resolution

                                      xiii
<PAGE>

26.  Termination; Removal
27.  Document Confidentiality
28.  General Terms

                                      xiii
<PAGE>

                                 EXHIBIT SUMMARY

EXHIBIT  A-1   Route Plan
EXHIBIT  A-2   As-Built Drawing(s)
EXHIBIT  B     Planning, Installation and Implementation of Pathnet's System
EXHIBIT  C     Standard Lease Form (Form 3014-FO)
EXHIBIT  D     Sign(s) Design
   (copy)
EXHIBIT  E     Specifications for Underground Cable Crossings Under Tracks and
   (copy)      Rights of Way
EXHIBIT  F     Communications Manual Part 1-B-1, Paragraphs A through S and
   (copy)      Specifications for the Construction of Railroad
               Communication Pole Lines
EXHIBIT  G     Specifications for the Attachment of Cables to Railroad Bridges
EXHIBIT  H     Emergency and Disaster Responses
EXHIBIT  I     Specifications for Pole(s), Cable Crossing Installation Over
   (copy)      Railroad Tracks and Operating Right-of-Way
EXHIBIT  J     EB-2 Schedule
EXHIBIT  K     Arbitration or Mediation Resolution Procedures
EXHIBIT  L     Pathnet's Authorization for Fiber Optic Cable Work (sample)
EXHIBIT  M     Fiber Optic Installation SOP (Standard Operating Procedure,
   (copy)      MWI 1905-01, Issued 6/30/98)

                                       14

<PAGE>

                        RIGHT OF WAY OPERATING AGREEMENT

            THIS RIGHT OF WAY OPERATING AGREEMENT (this "Operating  Agreement"),
is made as of  March 30, 2000 (the  "Effective  Date"),  by and between CSX
TRANSPORTATION,  INC.,  a  Virginia  corporation  ("CSXT"),  for  itself  and as
Operator for New York Central Lines LLC, a Delaware  limited  liability  company
("NYC Lines") and a wholly-owned subsidiary of Consolidated Rail Corporation,  a
Pennsylvania corporation (CSXT and NYC Lines, collectively,  "Railroad"),  whose
mailing address is 500 Water Street,  Jacksonville,  Florida 32202,  and PATHNET
TELECOMMUNICATIONS,  INC., a Delaware  corporation  ("Pathnet"),  whose  mailing
address is 1015 31st Street, N.W., Washington, D.C. 20007.

                                 R E C I T A L S

            A.  Railroad is the owner or operator of a  continuous  right-of way
(by fee, easement,  license,  operating agreement,  joint use agreement or other
interest) within certain real property upon which it operates an interstate rail
transportation  system,  as shown on Railroad's  current System Map (hereinafter
referred to as the "Rail Corridor").

            B. Pursuant to the Contribution  Agreement and Stockholder Agreement
being  executed  in  connection  herewith,  Pathnet  desires  to  enter  into an
agreement  with  Railroad  to permit  Pathnet to  install,  market,  sell and/or
maintain a Fiber Optic  Communication  System,  including  Conduit  (Innerduct),
Cable, Optical Fibers and related equipment and structures,  along, in and on up
to [ * * * ] miles of Rail  Corridor,  along Segments of the Rail Corridor to be
selected in accordance herewith.

            C. Pursuant to the Contribution  Agreement and Stockholder Agreement
being executed in connection  herewith,  Railroad is willing to transfer certain
property  interests to Pathnet in exchange for stock in Pathnet,  provided  that
Pathnet  accepts a license to use the  selected  Segments  of the Rail  Corridor
subject to all of the terms and conditions of this  Operating  Agreement and the
Fiber  Optic  Access and License  Agreement  being  entered  into by and between
Railroad and Pathnet concurrently herewith (hereinafter, the "License Agreement"
and, together with this Operating Agreement, the "Agreements"), which Agreements
provide,  among other  things,  that (i) the license  granted  thereby  shall be
subject  to the  existing  rights and  interests  of other  parties,  including,
without  limitation,  [ * * * ]  and  [ * * * ],  and  (ii)  Railroad  makes  no
representation or warranty with respect to its right, title or interest, if any,
in and to any  portion  of the Rail  Corridor  or its right to grant any type of
license or other right for any party,  including  Pathnet,  to use or occupy the
same.

            NOW, THEREFORE, for good and valuable consideration, the receipt and
adequacy of which are hereby acknowledged,  Railroad and Pathnet hereby agree as
follows:

                                        1
<PAGE>

1.    CERTAIN DEFINITIONS.

      1.1  General  Interpretive  Principles.  For  purposes  of this  Operating
Agreement,  except  as  otherwise  expressly  provided  or  unless  the  context
otherwise  requires,  (i) the terms  defined in this  Section  have the meanings
assigned to them in this Section and include the plural as well as the singular,
and the use of any gender in this Operating Agreement shall be deemed to include
the other gender;  (ii) the word "including" means  "including,  but not limited
to," and (iii) the article,  section and  paragraph  headings in this  Operating
Agreement are for convenience only and are not intended to describe,  interpret,
define or limit the scope,  extent,  or intent of any of the  provisions of this
Operating Agreement.

      1.2 Incorporation of Recitals. The Recitals set forth above are
incorporated herein by this reference

      1.3 Definitions.  As used in this Operating Agreement, the following terms
shall  have  the  following  respective  meanings  (unless  otherwise  expressly
provided):

      "Abandonment", when applied to a Rail Corridor, shall mean the application
to  (and  approval  of) the  necessary  and  applicable  governmental  body  for
permission  to cease all public  rail  transportation  over any  Segment of Rail
Corridor and the removal of all Railroad  property,  tracks and ties,  excluding
permitted or required rail banking conveyances.

      "Affiliate"  shall mean any Person that,  directly or indirectly,  through
one or more  intermediaries,  controls or is  controlled  by, or is under common
control with, another Person.  The term "control," for this purpose,  shall mean
the ability,  whether by the  ownership of shares or other equity  interest,  by
contract or otherwise,  to elect a majority of the  directors of a  corporation,
independently  to select the managing  partner of a partnership  or the managing
member  of  a  limited  liability  company,  or  otherwise  to  have  the  power
independently  to remove and then select a majority of those Persons  exercising
governing  authority over an entity.  Control shall be conclusively  presumed in
the case of the direct or indirect  ownership of fifty  percent (50%) or more of
the equity interests in an entity.

      "Agreements" shall be as defined in Recital C.

      "As-Built Drawing" shall comprise Pathnet's Construction Plans, revised to
reflect all changes made during  actual  construction,  and shall show,  without
limitation, the exact location of Pathnet's System and Facilities in relation to
the nearest track,  and shall,  upon submission to and approval by Railroad,  be
attached hereto as Exhibit A-2.

      "Broadform Telecommunications Rights" shall mean, exclusive of the Limited
Telecommunications  Rights granted  hereunder,  the right of owners of and other
parties  with  interests  in the land  underlying  the Rail  Corridor to license
generally,  for  telecommunications  purposes,  any  and  all  portions  of Rail
Corridor.

      "Cable"  shall  mean a single  cable  containing  Optical  Fiber,  and any
support material and protective  casing,  capable of transmitting  data or voice
communications in a Fiber Optic Communication System.

                                        2
<PAGE>

      "Conduit  (Innerduct)" shall mean a single duct or pipe, not exceeding two
inches (2") inside diameter,  except where specifically  required or approved by
Railroad, suitable for housing a Fiber Optic Cable.

      "Conduit  Right-of-Way"  shall mean that  portion of the  Designated  Rail
Corridor on which  Pathnet's  Fiber Optic  Communication  System and  Facilities
(other than microwave and transmission towers) are located.

      "Construction Plans" shall mean the drawings, plans and specifications for
the construction  and  installation of Pathnet's System and Facilities,  showing
the proposed  location of all  Pathnet's  System and  Facilities,  in sufficient
detail,  with distance shown from nearest track, with separate detailed drawings
of all junction, Repeater (Regen) Sites, bridge and tunnel occupancies,  showing
depth of installation,  details and methods of the proposed  construction,  with
numbers and size of  Conduit(s)  (Innerduct(s))  or bare  Cable(s) to be placed,
including  Optical Fiber count and total mileage for each Segment.  Construction
Plans shall clearly note  Railroad  Valuation Map  references,  Railroad  Survey
Station and Milepost  references  for all  beginning  and ending  points and all
alignment  transition  points.  Each set of Construction  Plans for each Segment
shall have an overview map showing all of the required information.

      "Contracted   Railroad   Personnel"   shall  mean,  for  purposes  of  the
establishment  of liability  between and among the  contracting  parties of this
Operating  Agreement only, those employees of Railroad utilized in performing or
directly involved in the route designation,  inspection,  survey,  design, plan,
installation,  construction, maintenance or operation of Pathnet's Facilities or
System,  upon request of Pathnet or as  otherwise  required or permitted by this
Operating Agreement; and the same shall be considered as sole agents or servants
of Pathnet when performing such activity.

      "Contribution  Agreement" shall mean that certain  Contribution  Agreement
dated as of  November 2,  1999 by and  between,  among  others,  Railroad  and
Pathnet.

      "CSXT  Corridor"  shall  mean,  subject  to  Section  2.1 of  the  License
Agreement,  all of the Rail Corridor exclusive of the NYC Corridor, as described
in Exhibit 2 attached to the License Agreement.

      "CSXT" shall mean CSX Transportation, Inc., any of its predecessor
railroads, and any successor by merger, consolidation or reorganization.

      "Default  Rate" shall mean a rate of  interest  equal to the lesser of (a)
the Prime Rate plus five percent (5%) per annum, or (b) the highest non-usurious
rate permitted under applicable law.

      "Designated  Rail  Corridor"  shall  mean a Segment  of the Rail  Corridor
selected by Pathnet and approved by Railroad in accordance with the terms of the
Agreements.

      "Discontinuance," when related to bare Conduit (Innerduct) or dark Optical
Fiber within  Pathnet's  Fiber Optic  Communication  System or Segment  thereof,
shall mean that Pathnet has ceased dedicating commercially reasonable efforts to
the sale and  marketing  of  telecommunications  products  and  services  on the
applicable  Segment for a period of six  consecutive (6) months and when related
to lit  Optical  Fiber  within  Pathnet's  Fiber Optic  Communication  System or
Segment thereof, shall mean, for a period of six (6) consecutive

                                        3
<PAGE>

months,  complete (a) disconnection  from power source;  (b) disconnection  from
terminal;  or (c) cessation of  transmission  of signal  through such Segment or
System.  Such term shall not include a temporary  disconnection  or cessation of
transmission  during  periods  of  maintenance  or  repair  of the  Fiber  Optic
Communication System.

      "Engineer"  shall  mean the  Chief  Engineer  of CSXT,  or the  authorized
representative(s) thereof.

      "Facilities",  when applied to property of or installed by Pathnet,  shall
mean Conduit (Innerduct), Cable, carrier pipes, Pathnet wires and poles, Optical
Fibers,  junctions,  Repeaters (Regens),  Handholds,  terminals,  power sources,
fault alarm system(s),  emergency equipment storage shelters,  attachments,  and
all other structures and articles of personal property connected with, necessary
for,  appurtenant  to, or useful to the  installation,  operation,  maintenance,
repair, re-installation,  replacement,  relocation or removal of Pathnet's Fiber
Optic Communication System.

      "Fiber Optic" or "Optical Fiber" shall mean a strand of optical  waveguide
permitting the transmission of communications signals.

      "Fiber  Optic  Communication  System"  or  "System"  shall mean the system
utilizing Optical Fiber as the medium for  communications and transmission to be
installed  by  Pathnet  in the  Designated  Rail  Corridor,  which  may  contain
Conduit(s)  (Innerduct(s)),  Cable(s)  and  Optical  Fiber(s).  Such terms shall
include all Conduit  (Innerduct),  Cable,  Optical Fiber,  Handholds,  manholes,
marker tape, signs, couplers,  structure attachment,  pull rope, other necessary
ancillary hardware,  and bridge, tunnel and trestle attachments,  and shall also
include  such  communications  technologies  as may  hereafter  evolve  from  or
relating to Optical Fiber but which utilize  Pathnet's  Facilities and/or System
as initially installed or as thereafter modified pursuant to the Agreements.

      "Fouling  of Tracks" or  "Fouled"  shall mean the  existence,  movement or
placement of equipment  and/or  personnel on a railroad  track or within  twelve
feet (12') of the centerline of any track within the Rail Corridor.

      "Handholds"  shall  include  Cable loops,  or boxes or vaults placed in or
above ground at junctions,  Repeaters (Regens) or at areas of Cable splicing and
connection, for storage of slack Cable.

      "License Agreement" shall have the meaning set forth in Recital C.

      "Limited   Telecommunications   Rights"  shall  mean  Pathnet's  right  to
construct, install, operate, repair and maintain Pathnet's Facilities and System
as more  particularly  described in, and subject to the terms and conditions of,
the Agreements,  including,  without limitation, those contained in Article 6 of
the License Agreement.

      "NYC  Corridor"  shall  mean that  certain  portion  of the Rail  Corridor
operated by CSXT pursuant to that certain  Operating  Agreement dated as of June
1, 1999 by and  between  New York  Central  Lines LLC,  as owner,  and CSXT,  as
operator, as described in Exhibit 2 to the License Agreement.

      "Optical Fiber" shall mean Fiber Optic.

                                        4
<PAGE>

      "Pathnet" shall mean Pathnet as defined in the  introductory  paragraph of
this Agreement,  any successor by merger,  consolidation or reorganization,  and
its permitted assignees.  For purposes of Pathnet's  construction,  maintenance,
repair, replacement or removal of Pathnet's System and/or Facilities,  "Pathnet"
shall  also  mean  Pathnet's  employees,   agents,  servants,   contractors  and
subcontractors.

      "Person"  shall mean any  individual,  association,  partnership,  limited
liability  company,  corporation,  joint stock  company,  trust,  joint venture,
unincorporated organization or governmental entity or any department,  agency or
political subdivision thereof.

      "Prime  Rate" shall mean the prime rate of U.S.  money  center  commercial
banks as published in The Wall Street Journal from time to time.

      "[ * * * ] Obligations" shall be as defined in the License Agreement.

      "Railroad" shall mean Railroad as defined in the introductory paragraph of
this Agreement,  any of its predecessor  railroads (including  Consolidated Rail
Corporation), any successor by merger, consolidation or reorganization,  and its
permitted   assignees.   For  the   purposes  of  Article  17   (excluding   the
indemnification obligation in Section 17.2 which shall be limited to Railroad as
defined in the  introductory  paragraph of this  Agreement) and Article 18 only,
the term "Railroad" shall also include all Affiliates of CSXT, Affiliates of NYC
Lines and their respective officers, directors, employees and agents.

      "Rail Corridor" shall have the meaning set forth in Recital A.

      "Relocation",  when related to alteration  or removal of Railroad's  track
from Rail  Corridor,  shall mean: (a) change in track grade or location in order
to avoid or eliminate curvature problems;  (b) creation or deletion of double or
multiple  tracks;  or (c)  installation of additional  passing  tracks,  storage
sidings,  spur or industrial lead tracks, and other track movement for operating
or shipping  needs or plans of Railroad.  The term,  however,  shall not include
Abandonment  or complete  removal of any particular  tracks in conjunction  with
termination or Abandonment of a service route, branch or main line.

      "Repeater  (Regen)"  shall mean a device which  regenerates,  amplifies or
extends optical  signals,  used to send the light impulse through Optical Fiber,
and includes attendant  equipment,  facilities,  power source, and technological
changes.

      "Repeater  (Regen) Sites" shall mean those permitted  portions of the Rail
Corridor on which  Repeaters  (Regens) are  located;  and shall be limited to an
area of five  hundred  (500)  square  feet  or  less,  and  located  beyond  the
Restricted Working Area, unless otherwise  specifically  permitted in writing by
Railroad

      "Restricted  Working  Area"  shall mean the area  parallel  to and located
thirty  feet (30') (or the top of any ditch  slope if that  distance  is greater
than  thirty feet (30')) from the  centerline  of the  outermost  track (on each
side) in the Rail Corridor.

                                        5
<PAGE>

      "Route  Plan"  shall  mean the plan  showing  the  route of  placement  of
Pathnet's  Facilities  and System in, on or over  Segments  of  Railroad's  Rail
Corridor,  as prepared by Pathnet and approved in writing by Railroad,  as shown
on Exhibit A-1 attached hereto.

      "Segment"  shall mean either a longitudinal  section of Rail Corridor or a
longitudinal  section of Conduit  (Innerduct) or Cable installed by Pathnet,  as
applicable.

      "Stockholder  Agreement"  shall mean that  certain  Stockholder  Agreement
dated on or about the date hereof by and  between, among  others,  Railroad  and
Pathnet.

      "System" shall mean Fiber Optic Communication System.

      "Title Deficient Areas" shall mean those portions of the Rail Corridor, if
any,  for which  Railroad  holds title in less than fee simple  absolute and for
which  Railroad may not otherwise have the right to grant to Pathnet the license
for use and occupancy as contemplated by the License Agreement.

      "Trackage  Rights"  shall mean the  rights  arising  by  agreement  of one
railroad to use the tracks or right-of-way of another  railroad for the carriage
of rail traffic;  said agreement  ordinarily  imparting no ownership interest in
the burdening  carrier  relating to the tracks or  rights-of-way of the burdened
carrier.

      "Valuation  Maps" shall mean  Railroad's  Rail Corridor maps,  prepared by
Railroad  originally  in 1913-1919  under 49 U.S.  Code Sections 19 and 19a (now
Sections 10781-10783) for the U.S. Surface  Transportation  Board,  successor to
the Interstate Commerce Commission  ("S.T.B"),  and the S.T.B.  regulations,  as
updated from time to time.

      "[ * * * ] Obligations" shall be as defined in the License Agreement.

2.    GRANT OF LICENSE

      2.1 Exercise of Rights Under License  Agreement.  Pursuant to the terms of
the License Agreement,  Pathnet has been granted a license to select and utilize
up to [ * * * ] miles  of Rail  Corridor  (including  up to  2,000  miles of NYC
Corridor) for the installation  and operation of its System and Facilities.  The
rights and interests granted under the License Agreement shall be implemented in
accordance with the terms and provisions of this Operating  Agreement.  The term
of this  Operating  Agreement  shall be concurrent  with the term of the License
Agreement.

      2.2 Construction of the Facilities. Construction of the System and
Facilities by Pathnet shall occur in accordance with the following:

          (a) Access and Construction. All access and construction activities on
the  property  by  Pathnet  shall be  conducted  in strict  accordance  with the
requirements of this Operating  Agreement and the Exhibits hereto.  In the event
of any conflict between the terms of the Exhibits and the body of this Operating
Agreement, the provisions of the body of this Operating Agreement shall control.

          (b) Right to Audit. Railroad shall have the right, during regular
business hours, upon reasonable notice to Pathnet, and at mutually agreeable
times, to conduct field examinations

                                        6
<PAGE>

of  Pathnet's   Facilities   and  System  in  the  presence  of  an   authorized
representative  of Pathnet  and to examine  and audit such books and  records of
Pathnet as are appropriate  and necessary,  in Railroad's  sole  discretion,  to
determine and verify (i) the number and size of Conduits (Innerducts)  installed
by Pathnet in the Designated Rail Corridor pursuant to the Agreements,  and (ii)
such  other  items  related  to  Pathnet's  compliance  with  the  terms  of the
Agreements, as reasonably determined by Railroad. This audit right shall survive
the expiration or other  termination of the Agreements for a period of three (3)
years.

3.    LIMITATION OF RIGHTS; RAILROAD'S USE RIGHTS.

      3.1  Limitation  of Rights.  Pathnet,  at  Pathnet's  sole risk,  cost and
expense, shall furnish all materials, construct, maintain, use, change or remove
Pathnet's  Facilities  and System or any part thereof,  in  accordance  with the
design,  specifications  and  plans  approved  as  provided  in  this  Operating
Agreement, in a manner reasonably satisfactory to Railroad, all in a prudent and
workmanlike manner, in conformity with any applicable statutes,  orders,  rules,
regulations and specifications of any public body having  jurisdiction  thereof,
and so as not to interfere  with or endanger,  in the sole judgment of Railroad,
any property, traffic (freight or passenger), operations (direct or via Trackage
Rights),  maintenance,  employees or patrons of Railroad, or of others occupying
or using the  property of Railroad  for  railroad  operational  purposes at each
location,  including  other  lessees or  licensees  of  Railroad.  Railroad  may
prohibit  development on any Rail Corridor where development would  unreasonably
interfere with Railroad's  current or reasonably  foreseeable future development
for railroad  purposes.  Pathnet  shall be limited to a single  build  (one-time
placement)  in a single trench on each Segment of the  Designated  Rail Corridor
unless Railroad approves an additional trench, which approval may be withheld in
its sole discretion.

      3.2  Railroad's  Use Rights.  Subject to the terms and  provisions  of the
Agreements,  the  rights of  Pathnet  hereunder  shall  not  limit nor  preclude
Railroad's  use of its Rail  Corridor  for other  uses and  purposes,  including
placement and operation of Railroad's  own tracks(s),  signal and  communication
systems (of whatever  nature);  nor shall this Agreement bar or limit  placement
and operation of any other pipe, conduit,  cable,  optical fiber or wire line by
Railroad  or  its  licensee(s),  which  does  not  unreasonably  interfere  with
Pathnet's Facilities or Fiber Optic Communication System.

4.    PLANNING, INSTALLATION AND IMPLEMENTATION.

      The   procedures   and   conditions   for   planning,   installation   and
implementation  of  Pathnet's  System and  Facilities  are defined in Exhibit B,
attached hereto.

5.    PERMITS.

      5.1 Permit  Requirements.  Pathnet,  at its sole cost and  expense,  shall
secure  and  maintain  in  effect  all  federal,   state  and  local  approvals,
authorizations,   permits   and   licenses   required   for  the   construction,
installation,  operation,  maintenance,  repair,  replacement  and/or removal of
Pathnet's   Facilities  and  System,   including   zoning,   building,   health,
environmental  and  communication  service  permits  and  licenses,   and  shall
indemnify  Railroad  against claims for payment  therefor and against any claims
for fines or penalties  that may be levied for failure to procure,  or to comply
with,  such  approvals,  authorizations,  permits or licenses,  and any remedial
costs to cure any  violations  thereof.  Without  limiting  the  foregoing,  any
development or

                                        7
<PAGE>

environmental  impact statements  required for the Facilities or System shall be
prepared by Pathnet, at Pathnet's sole risk, cost and expense, and all costs for
local zoning,  construction  and subdivision  compliance,  approval and permits,
shall be borne solely by Pathnet.

      5.2 Railroad Cooperation.  Railroad shall not hinder Pathnet's attempts to
secure,  and shall  cooperate  with and assist  Pathnet,  at Pathnet's  cost and
expense,  in  obtaining,  any permits,  licenses or  approvals  of  governmental
agencies or  authorities,  or of any  necessary  third  parties,  for use of any
structures or facilities  (including streets,  roads or utility poles) along the
Designated Rail Corridor not solely owned by Railroad.

6.    FOULING TRACK; SAFETY RULES.

      6.1  Railroad  Safety and  Operating  Rules.  Pathnet  employees,  agents,
contractors  and/or  subcontractors  seeking  to enter or engage in  Fouling  of
Tracks or any portion of the Rail Corridor (including tunnels and bridges) shall
be trained in the safety and operating  rules  established by Railroad from time
to time (the "Railroad Safety and Operating Rules"), and shall at all times wear
required  identification badges and safety equipment (shoes,  hardhat,  goggles,
etc.).  Pathnet  shall bear all  travel,  lodging,  course  materials  and other
similar costs of its attendees at any program given or  administered by Railroad
to train such persons,  and Railroad  shall bear the costs  associated  with any
instructors.

      6.2  Contracted  Railroad  Personnel.  Railroad  shall provide  Contracted
Railroad  Personnel,  as necessary,  at Pathnet's sole risk, cost and expense as
provided  herein,  to accompany  Pathnet's  employees,  agents,  contractors  or
subcontractors during their presence on the tracks and the Rail Corridor.

      6.3 Restriction Right.  Notwithstanding  any contrary provision  contained
herein,  Railroad reserves the right, in its sole discretion,  to exclude or bar
specifically-named  individuals from entrance upon Railroad's tracks and/or Rail
Corridor for  demonstrating  actions  dangerous to themselves or others,  or for
refusing to comply with Railroad's  safety and operating  rules,  regulations or
directions, or for any other specific cause deemed sufficient in Railroad's sole
discretion.

7.    TRACK USE; CLEARANCES; CROSSINGS.

      7.1 Restricted Working Area. No goods, materials, equipment or fuel shall
be placed or stored within the Restricted Working Area.

      7.2 No Vehicles.  Pathnet shall not use Railroad's  tracks for maintenance
or the placement of its vehicles  without the prior written approval of such use
by  Railroad's  Engineer,  which  approval  may be  withheld  in his or her sole
discretion.

      7.3  Pathnet  Track  Support.  During  any  work of any  character  at any
location on its  System,  Pathnet,  at its sole risk,  cost and  expense,  shall
support the tracks and roadbed of Railroad to prevent any interference or danger
as necessary in the sole judgment of Railroad's Engineer. Upon the completion of
all work,  Pathnet  shall  restore  such tracks,  roadbed and other  property of
Railroad  to the same  functional  and  operational  condition  as  approved  by
Railroad's  Engineer,  which  approval  may be  withheld  in  his  or  her  sole
discretion.

                                        8
<PAGE>

      7.4  Railroad  Track  Support.  Railroad  may  perform or contract to have
performed any or all the work of supporting  tracks and roadbed and of restoring
the same, at the sole risk, cost and expense of Pathnet, if (a) Pathnet fails to
perform  such  work  timely or  satisfactorily,  (b) such  work is  required  by
Railroad's  labor  agreements  in  existence  at the time,  or (c)  requested by
Pathnet  (subject to  availability  of  Railroad's  personnel  and equipment and
satisfactory security for payment of costs by Pathnet).

      7.5  Crossing  Specifications.  Crossings  of  Railroad's  track  and Rail
Corridor   necessitated  by   difficulties  in  Conduit   (Innerduct)  or  Cable
construction  (i.e.,  locations  of manmade or  natural  structures,  waterways,
streets,  etc.) shall be coordinated  with and approved in writing by Railroad's
Engineer,  which  approval  may be withheld in his or her sole  discretion,  and
installation of such crossings shall be in accordance with the  requirements set
forth in Exhibit I, all at Pathnet's sole risk, cost and expense.

8.    FLAGGING; WATCHMEN.

      8.1 General.  Railroad shall have the right, in its sole discretion and at
any time  during  any  period of  construction,  maintenance,  repair,  renewal,
alteration  or removal of Pathnet's  System or  Facilities,  to place  watchers,
flaggers,  inspectors or  supervisors,  for the  protection of the operations of
Railroad  (including  freight and passenger service) or the property of Railroad
(including  Amtrak) or others (including  Pathnet) on the Rail Corridor or other
Railroad   property,   at  the  sole  risk,   cost  and   expense  of   Pathnet.
Notwithstanding  any contrary  provision  contained herein,  watchmen,  flagmen,
inspectors  or  supervisors  placed  upon the Rail  Corridor  or other  Railroad
property  while working on Pathnet's  System or Facilities  under this Article 8
shall be deemed to be Contracted Railroad Personnel of Pathnet.

      8.2 Scheduling.  Pathnet  recognizes that because of Railroad's  labor and
employment  agreements:  (a) the furnishing of any watchers or flaggers needs to
be  requested at least thirty (30) days prior to actual work date for short term
flagmen or forty-five (45) days prior to actual work date for long term flagmen,
or such  watchers/flaggers  may not be available;  (b) once a watcher/flagger is
designated,  he/she cannot be pulled from the job less than seven (7) days prior
to work date, or cost thereof may be incurred by Pathnet; (c) once assigned, for
any period of time, such  watcher/flagger must be paid for at least an eight (8)
hour shift,  regardless  of lesser  hours  worked;  and (d) if  Pathnet's  needs
overlap  ordinary shift turns (or tricks),  Pathnet may incur flagging costs for
both shifts/tricks.

9.    FACILITY LOCATION SIGNS.

      9.1  Pathnet,  at its sole  cost and  expense,  shall  furnish,  erect and
thereafter  maintain,  signs showing the location of all underground  Facilities
and Pathnet's contact  telephone number.  Such signs shall be painted and placed
in conformity with the provisions of Exhibit D attached hereto,  or as otherwise
mutually agreed upon in writing by Railroad and Pathnet.

10.   MAINTENANCE OF RAIL CORRIDOR, FACILITIES.

      10.1 Maintenance of Conduit Right-of-Way. Unless Railroad and Pathnet
otherwise agree in writing, Railroad shall not be responsible for maintenance of
Pathnet's Conduit Right-of-Way, or for clearing or removing of trees, shrubs,
plants, ice, snow or debris therefrom. If

                                        9
<PAGE>

Railroad agrees, at Pathnet's request,  to extend maintenance to cover Pathnet's
Conduit  Right-of-Way,  Railroad  shall  cut,  mow  and/or  treat  such  Conduit
Right-of-Way  maintenance  only at the same time as  Railroad  performs  its own
track  or Rail  Corridor  maintenance.  Railroad  shall  perform  such  extended
maintenance  at Pathnet's sole risk,  cost and expense and Railroad's  employees
performing such maintenance shall be deemed to be Contracted  Railroad Personnel
of Pathnet.  Railroad  shall be reimbursed  for all costs  incurred,  including,
without  limitation,  any and all billable  expenses,  labor costs  (Railroad or
contract),  supplies,  parts,  materials,  etc.,  directly  associated with such
extended maintenance program.

      10.2 Maintenance of Facilities. Pathnet shall maintain its Facilities, and
all ancillary structures within Conduit  Rights-of-Way,  at Pathnet's sole risk,
cost and expense.

11.   RAILROAD APPROVALS; ADMISSIONS.

      11.1 Any approval given or supervision exercised by Railroad hereunder, or
failure  of  Railroad  to object to any work  done,  material  used or method of
construction  or  maintenance of Pathnet's  System or  Facilities,  shall not be
construed as an admission of responsibility by Railroad or as a waiver of any of
the obligations of Pathnet under this Operating Agreement.

12.   RAILROAD EXPENSES; EMPLOYEE COSTS.

      12.1 General.  Railroad's  costs and expenses for work performed for or at
the expense of Pathnet pursuant to this Agreement (including review and approval
of Pathnet plans and designs)  shall be paid by Pathnet  within thirty (30) days
of Pathnet's  receipt of itemized  bills  therefor  irrespective  of any billing
disputes. Interest on unpaid billed amounts shall accrue monthly after the first
thirty (30) days at an annual rate equal to the Default Rate. Pathnet shall have
ninety (90) days from  payment to notify  Railroad,  in writing,  of any billing
disputes.  Billing disputes that are not resolved within sixty (60) days of such
notice shall be resolved in accordance with the provisions of Article 25.

      12.2 Invoice Format. Railroad bills for labor or supervision shall
include: Railroad's Project I.D. Number, Pathnet's Project I.D. Number,
Pathnet's Authorization for Fiber Optic Cable Work (substantially in the form of
Exhibit L attached hereto), and the dates, locations, party names, hourly or
salaried billing rates, number of hours, outside expenses and total charge.

      12.3 Permitted Costs and Expenses.  Documented costs and expenses directly
attributable  to work performed for Pathnet shall include only: (a) labor costs,
plus payroll  overhead and  additives  applicable  to each  Railroad  employee's
salary  or  hourly  rate as set forth in  Exhibit  J and as may be  modified  or
updated from time to time by Railroad;  (b) for contracted labor or consultants,
reasonable market-based amounts as billed to and paid by Railroad; (c) necessary
and  reasonable  travel  and  transportation   expenses;   (d)  the  reasonable,
market-based  total cost of materials  used and equipment  rentals,  plus actual
cost of freight  charges and handling;  and (e)  reasonable  rental cost for any
Railroad equipment used by Railroad or Pathnet or their respective  employees or
contractors.  Costs and expenses for  Railroad's  own labor and  personnel,  and
non-contract  administrative  overhead,  shall be limited to the sum of (i) then
current hourly rate plus,  (ii) applicable  overhead and additives  (which shall
include, but not be limited to, vacation, holiday, health and welfare, insurance
and  supervision) in accordance with the applicable  rates set forth in the then
current EB-2 Schedule in effect at the time the expense is

                                       10
<PAGE>

incurred,  published by Railroad and amended from time to time. The current EB-2
Schedule  applicable as of the Effective  Date is attached  hereto as Exhibit J.
Updated EB-2 Schedules will be available upon Pathnet's written request.

      12.4 Consultant. Railroad shall have the right, in its sole discretion, to
place  a  consultant  on  any  installation  site  in  lieu  of  Railroad's  own
supervisory  personnel,  at  Pathnet's  sole  cost and  expense  (provided  such
expenses are  reasonable,  market-based  and  consistent  with the provisions of
Section  12.3 above),  to monitor  installation  and  compliance  with  approved
Construction  Plans,  to log  progress,  and to log the time  spent by  Railroad
employees  (including  Contracted  Railroad  Personnel) in  accordance  with the
Agreements (by name, date and purpose).  Such  consultant  shall advise Railroad
and Pathnet of any  deviation  from  approved  Construction  Plans  requested by
Pathnet or any of Pathnet's contractors.

      12.5  Records.  Railroad  shall  keep  accurate  records  of all costs and
expenses  attributable to Pathnet pursuant to the Agreements,  and Pathnet shall
have the right,  at  Pathnet's  sole cost and  expense,  to examine and copy the
applicable  records of Railroad to verify that such charges  accurately  reflect
the costs and expenses thereof.

13.   LIENS AND ENCUMBRANCES.

      13.1 Pathnet shall not permit any  mortgage,  pledge,  security  interest,
lien or encumbrance,  including,  without limitation,  tax liens or encumbrances
and liens or encumbrances with respect to work performed or equipment  furnished
in  connection  with  the   construction,   installation,   operation,   repair,
maintenance,  replacement  or removal of the System or Facilities or any portion
of  the  Rail   Corridor   occupied   by   Pathnet   (collectively,   "Liens  or
Encumbrances"),  to be  established  or remain  against the Rail Corridor or any
other  property of  Railroad.  In the event that any Railroad  property  becomes
subject to any Lien or Encumbrance,  Pathnet agrees to pay, discharge,  bond off
or remove the same within  thirty (30) days of Pathnet's  receipt of notice that
such Lien or Encumbrance has been recorded,  filed or docketed against such Rail
Corridor or other Railroad property; provided, however, that if Pathnet provides
a bond or other  security  acceptable to Railroad for the payment and removal of
such Lien or Encumbrance, Pathnet shall have the right to challenge, at its sole
expense,  the validity  and/or  enforceability  of any such Lien or Encumbrance.
Pathnet shall indemnify,  defend and hold Railroad harmless against all damages,
costs (including  reasonable  attorneys' fees) and expenses,  arising out of any
lien, the  enforcement or removal  thereof,  or encumbrance  caused by the same,
with respect to the Rail Corridor or any portion  thereof or any other  Railroad
property.

14.   TAXES.

      14.1 Transfer Taxes.  Except as provided in Section 14.4 of this Operating
Agreement,  Pathnet  shall pay all transfer or  recordation  taxes,  documentary
stamps, and any similar expenses in connection with the transfer or execution of
the License (as defined in the License Agreement), this Operating Agreement, the
Contribution Agreement, the System and/or the Facilities.

      14.2 Sales and Use Taxes. Except as provided in Section 14.4 of this
Operating Agreement, if, pursuant to the Agreements or the Contribution
Agreement (i) the sale, acquisition, license, grant, transfer or disposition of
property or rights, or (ii) the payment

                                       11
<PAGE>

of any fee or  compensation  or the payment to Railroad  for  services  provided
thereunder, requires the payment of any sales or use tax (including any Canadian
GST or  provincial  sales tax) under any statute,  regulation  or rule,  Pathnet
shall pay the same, plus any penalty or interest  thereon,  to Railroad when due
or if allowable, directly to such taxing authority, and shall indemnify and hold
Railroad harmless therefrom.

      14.3 Property Taxes.  Pathnet shall pay all annual and periodic ad valorem
and other taxes levied or assessed upon Pathnet's  Facilities or the System, and
shall indemnify and hold Railroad harmless therefrom.

      14.4 Taxes Payable by Railroad.  Pathnet shall have no responsibility  for
(i) any taxes  (including  but not limited to transfer,  sales,  use,  income or
property  taxes),  assessments  or other  impositions  attributable  to  Conduit
(Innerduct) or other telecommunications  assets or services provided to Railroad
pursuant to Article 8 of the License  Agreement;  (ii) taxes based on Railroad's
income or corporate  franchise;  or (iii)  property or franchise  taxes that are
attributable  to the Rail  Corridor and not to Pathnet's  Facilities  or System.
Railroad shall reimburse Pathnet for any such taxes,  assessments or impositions
within thirty (30) days after written request.

      14.5 Mutual Cooperation.  Each party shall cooperate with the other party,
at the first party's sole cost and expense,  in the prosecution of any claim for
refund, rebate, reduction or abatement of any taxes which are the responsibility
of the first party under the Agreements or the Contribution Agreement,  provided
that a reasonable basis exists for such refund, rebate,  reduction or abatement.
The first party  shall  reimburse  the second  party for all  reasonable  out of
pocket  expenses  incurred in connection  therewith.  Notwithstanding  any other
provision of this Section,  the first party is not obligated to pay or reimburse
the  second  party for any tax for which the first  party is liable  under  this
Section  if the  party  first  elects to  prosecute  a claim  for  reduction  or
abatement of such taxes and prepayment thereof is not a condition to prosecuting
the claim.  The first party shall pay or reimburse the second party for any such
taxes when the taxes  finally  are  adjudged  to be due and owing by the highest
administrative or judicial authority to which an appeal has been taken.

15.   SITES FOR NON-CABLE FACILITIES.

      15.1  Non-Cable  Areas.  Railroad,  insofar  as it has the  right  and can
reasonably do so, shall make  available to Pathnet for Pathnet's sole use, areas
not to exceed five hundred (500) square feet within the Designated Rail Corridor
for use by  Pathnet as  Repeater  (Regen)  Sites,  or power or  auxiliary  power
stations, or sites for construction facilities or temporary storage of materials
and fuel for power  stations.  Railroad shall have no duty to provide such sites
at a requested  location if the width,  nature or other uses or planned  uses of
the Rail Corridor by Railroad at such location or if  restrictions on Railroad's
title or interest in the property preclude such use by Pathnet.

      15.2 Adjacent Land. If for any reason,  Railroad is unable to provide such
site within the Designated  Rail Corridor,  and Railroad has available  adjacent
land suitable for the location of such site, then Railroad shall furnish the use
of a reasonable  portion of such adjacent land to Pathnet for such site at a fee
to be  negotiated;  provided,  however,  that such use will not  interfere  with
Railroad's current or reasonably  foreseeable future use of such property.  Such
adjacent land usage shall be documented by Railroad's  standard form lease,  the
form of which is attached hereto as Exhibit C.

                                       12
<PAGE>

      15.3 No Obligation as to Third Parties.  Notwithstanding the provisions of
Sections  15.1 and 15.2,  Railroad  shall have no  obligation to provide or make
available  any  portion  of any  adjacent  land or allow  the  expansion  of any
structure of Pathnet  located  thereon  beyond five hundred (500) square feet or
such  additional  size  initially  improved  by  Pathnet  with the  approval  of
Railroad,  which  approval  may be withheld in its sole  discretion,  for use by
third party purchasers,  sublicensees,  transferees or permitted assignees.  Any
such accommodation shall be at a fee to be negotiated,  shall not interfere with
Railroad's  current or future use of such  property and shall be  documented  by
Railroad's  standard form lease, the form of which is attached hereto as Exhibit
C. This Section 15.3 shall not apply to Pathnet's partners in development of the
Rail  Corridor,  and shall  not  restrict  Pathnet's  ability  to make  space in
Pathnet's  existing  Facilities  available  to third  parties  on such  terms as
Pathnet determines in its sole discretion.  Pathnet shall,  except to the extent
caused  by  Railroad's  gross  negligence  or  willful  misconduct,  (i)  assume
responsibility for any and all claims,  liabilities,  damages,  costs (including
reasonable  attorneys'  fees) and expenses arising out of or based upon the acts
or omissions of any such third party in or around such non-cable facilities, the
Rail Corridor or other Railroad  property,  and (ii) indemnify,  defend and hold
Railroad  harmless  from and against any and all losses and damages  suffered by
such  third  party  as a  result  of the  presence  of such  third  party or its
facilities  or  equipment  in or  around  such  non-cable  facilities,  the Rail
Corridor or other Railroad property.

      15.4 Rent.  Rents for any land(s) outside of the Designated Rail Corridor,
or for lands within the Designated Rail Corridor in excess of five hundred (500)
square feet or for uses other than those described in Section 15.1,  shall be at
a fee to be negotiated.

      15.5  Approval of  Structure.  The location  and size of any  buildings or
other  structures  to be placed by Pathnet or any third party within  Railroad's
Rail Corridor or on Railroad's other property shall be as approved by Railroad's
Engineer, which approval may be withheld in his or her sole discretion, on plans
submitted in accordance herewith.

16.   INDEPENDENT CONTRACTOR STATUS.

      16.1 Except with respect to the Contracted  Railroad  Personnel,  Railroad
reserves no control whatsoever over the employment,  discharge,  compensation of
or services rendered by Pathnet's  employees,  agents or contractors,  and it is
the  intention of the parties  that  Pathnet  shall be and remain a licensee and
that nothing  herein shall be construed as  inconsistent  with that status or as
creating or implying  any  partnership  or joint  venture  relationship  between
Pathnet and Railroad.

17.   LIABILITY; INDEMNITY.

      17.1 Pathnet's Release and Indemnification.  Recognizing that Railroad has
owned and/or  operated the Rail  Corridor for many years prior to the  Effective
Date  and  prior  to  entry  thereupon  by  employees,  agents,  contractors  or
representatives  of  Pathnet,  and  in  addition  to the  indemnities  otherwise
provided in the Agreements,  Pathnet hereby assumes,  releases and shall defend,
indemnify, protect and save Railroad harmless from and against the following:

           (a) All  claims,  liabilities,  losses,  damages,  causes of  action,
costs,  and expenses  (including  reasonable  attorneys' fees and costs) arising
from: (1) damage to or  destruction of Pathnet's  Facilities or System except to
the extent attributable to the willful misconduct of

                                       13
<PAGE>
Railroad,  its  employees  or  contractors  and (2)  loss of  service  or use of
Pathnet's Facilities or System or loss of revenue or profit therefrom, including
any  claim  or  loss  to  any  client,  customer,  patron  or  other  purchaser,
transferee,  sublicensee or permitted  assignee of Pathnet's  rights or services
resulting from any damage to or  destruction of Pathnet's  Facilities or System.
Railroad  shall not under any  circumstances  be liable for  interruption  of or
damage to the  installation,  operation,  maintenance  or  repair  of  Pathnet's
Facilities or System unless  attributable to the willful misconduct of Railroad,
its employees (including Contracted Railroad Personnel), agents, contractors, or
other parties  performing  services for Railroad.  In no event shall Railroad be
liable for loss of income,  cost of substitute  service,  or other consequential
damages of any kind;

           (b) All  claims,  liabilities,  losses,  damages,  causes of  action,
costs,  and expenses  (including  reasonable  attorneys' fees and costs) arising
from  injury to or death of any  persons  on or about  Pathnet's  Facilities  or
System, including, but not limited to, Pathnet's employees, agents, contractors,
subcontractors,  invitees, or other such third parties, purchasers, transferees,
permitted  assignees,  licensees or sublicensees,  resulting from the existence,
construction,   maintenance,   operation,   use,  repair,   change,   placement,
replacement,  relocation  and/or subsequent  removal of Pathnet's  Facilities or
System,  or any part thereof,  or the use of the Rail Corridor or other Railroad
Property, regardless of any approvals, reviews, controls or standards imposed by
Railroad or other  actions of  Railroad,  unless such claims,  losses,  damages,
causes of action,  costs, and expenses (including reasonable attorneys' fees and
costs) result from the willful misconduct of Railroad;

           (c) All claims, liabilities, losses, damages, causes of action, costs
and expenses (including  reasonable  attorneys' fees and costs) arising from any
breach of the Agreements by Pathnet,  including, but not limited to, any failure
of Pathnet to support track and/or roadbed, as provided herein or any failure of
Pathnet to secure permits or other approvals as provided  herein,  regardless of
cause,  including  Railroad's  negligence,   but  excluding  Railroad's  willful
misconduct;

           (d) All  claims,  liabilities,  losses,  damages,  causes of  action,
costs,  and expenses  (including  reasonable  attorneys' fees and costs) arising
from any slide, soil disturbance or environmental damage or impairment resulting
from the existence,  construction,  installation,  maintenance,  operation, use,
repair,  change,  placement,  relocation and/or subsequent  removal of Pathnet's
Facilities or System, regardless of cause, including Railroad's negligence,  but
excluding Railroad's willful misconduct;

           (e) Any claim (regardless of merit), loss or damages awarded, whether
civil or criminal,  under any  antitrust  laws,  or under any federal,  state or
local regulatory  actions,  attributable to issues arising under the Agreements,
it being  understood  and  agreed  that  this  indemnity  shall not apply to any
claims, loss or damage arising out of any other agreement between the parties or
the parties'  performance  thereunder,  including the contributions set forth in
the Contribution Agreement;  in any such actions,  Railroad shall have the right
to designate and/or employ independent counsel, if deemed necessary by Railroad,
to protect its interests,  and the expense of such representation  shall be paid
or reimbursed by Pathnet;

           (f) Reserved.

           (g) All  claims,  liabilities,  losses,  damages,  causes of  action,
costs,  and expenses  (including  reasonable  attorneys' fees and costs) arising
from any damage or injury to (including

                                       14
<PAGE>
loss of use or service of or loss of  revenue  or profit  from) any  facilities,
cables, wires, pipes, casings, conduits,  innerducts or ducts of any other party
or Conduit  Right-of-Way  operator or user, licensee,  sublicensee,  transferee,
purchaser or permitted assignee arising out of or related to any act or omission
of  Pathnet  or  Pathnet's  employees,   agents,  contractors,   subcontractors,
licensees, sublicensees,  customers, partners, the Contracted Railroad Personnel
or others acting at the direction of any of the foregoing,  unless caused by the
willful misconduct of Railroad or Contracted Railroad Personnel;

           (h) All  claims,  liabilities,  losses,  damages,  causes of  action,
costs,  and expenses  (including  reasonable  attorneys' fees and costs) arising
from any act or omission of Pathnet or Pathnet's employees, agents, contractors,
subcontractors,  licensees,  sublicensees,  customers,  partners, the Contracted
Railroad  Personnel or others  acting at the  direction of any of the  foregoing
which are not expressly assumed by Railroad under Section 17.2.

      17.2 Railroad's  Indemnification.  Railroad hereby assumes  responsibility
for,  and shall  indemnify,  defend  and hold  Pathnet  harmless  from,  claims,
liabilities,  losses, damages, causes of actions, costs, and expenses (including
reasonable attorneys' fees and costs) arising from:

           (a) Death of or injury to any employee(s) of Railroad or Railroad's
Affiliates, other than Contracted Railroad Personnel;

           (b) Destruction of or damages to any Railroad or Railroad Affiliate
facilities or equipment (moving or stationary) or property;

           (c) Interruption to or cessation of freight rail service;

           (d)   The   willful   misconduct   of   Railroad's   Affiliates   or,
notwithstanding  anything to the contrary contained herein,  Contracted Railroad
Personnel.

UNLESS such claim, liability,  loss, damage, cause of action, cost or expense is
caused by, arises from, or results in whole or in part from:

               (i) any act or  omission of Pathnet  (including,  but not limited
to, any improper or negligent  plan and/or design,  construction,  installation,
maintenance,   placement,  operation,  repair,  relocation  use  or  removal  of
Pathnet's System or Facilities);

               (ii)  any breach of the Agreements by Pathnet;

               (iii) any direct rescheduling, delay or diversion costs, as set
               forth in Exhibit B; or

               (iv)  any matter which is the subject of Pathnet's release and
indemnification in Section 17.1.

      17.3 Notice of Claims;  Indemnification Procedures. Upon receipt of notice
by Railroad or Pathnet, as applicable,  (the "Indemnitee"),  of any loss, event,
happening or  occurrence  which would be the basis of a claim by the  Indemnitee
under the provisions of this Article 17 (an "Indemnified Claim"), the Indemnitee
shall immediately  provide written notice to the other party (the  "Indemnitor")
of such Indemnified Claim. So long as the Indemnitor is not in default in the

                                       15
<PAGE>

performance of its obligations  under the Agreements,  as between the Indemnitee
and the Indemnitor,  the Indemnitor shall retain primary  responsibility for the
conducting  of any  legal  and/or  administrative  action  or  other  proceeding
regarding any such Indemnified Claim (an "Indemnified Claim Proceeding") and the
defense (and any  appropriate  appeal)  thereof.  Legal  counsel  retained  with
respect to any Indemnified Claim proceeding shall be selected by the Indemnitor,
but shall be subject to the  reasonable  prior  approval of the  Indemnitee.  As
between the  Indemnitee and the  Indemnitor,  all costs incurred with respect to
any Indemnified  Claim  Proceeding  (including,  but not limited to,  reasonable
costs  and  attorneys'  fees)  shall  be  borne  by  the  Indemnitor,   and  the
Indemnitor's  indemnification  obligations  set forth in this  Article  17 shall
extend to all such costs.  Nothing  contained  herein shall in any way limit the
Indemnitee's right to participate  and/or retain  independent legal counsel,  at
the Indemnitee's expense, with respect to any Indemnified Claim proceeding,  but
the Indemnitee  shall cooperate with the Indemnitor and coordinate  Indemnitee's
participation   and/or  use  of  such  independent   counsel  in  a  matter  not
inconsistent with Indemnitor's positions and interests in such Indemnified Claim
Proceeding,  to the extent reasonably  possible and not adverse to the interests
of  Indemnitee.   Notwithstanding   the  foregoing,   in  the  event  Indemnitee
determines,  in  Indemnitee's  reasonable  opinion,  that there is a conflict of
interest or other circumstance whereby such Indemnitor's  retained legal counsel
cannot  adequately  represent  Indemnitee's  interests in any Indemnified  Claim
Proceeding,  Indemnitee shall have the right to retain independent legal counsel
and Indemnitor's  indemnification obligations set forth in this Article 17 shall
extend to all costs  incurred with respect to such separate  representation.  In
the event that an Indemnitor defends an Indemnitee pursuant to the terms hereof,
and the final adjudication  determines that the Indemnitee bears some portion of
liability under the Indemnified  Claim which is not subject to the  Indemnitor's
indemnification  obligations  hereunder,  the  costs  of  such  defense  will be
apportioned  between the  Indemnitor  and  Indemnitee  based upon such  parties'
ultimate liability after giving effect to the indemnification provisions hereof.
Any settlement of an Indemnified  Claim shall be subject to the written approval
of both the Indemnitee and the Indemnitor. Indemnification payment shall be made
within thirty (30) days of such approval.

      17.4  Exceptions  to  Liability.  Notwithstanding  any contrary  provision
contained herein,  (a) Railroad shall not have any liability  whatsoever for any
death of or injury to persons or damage to or loss of property  arising  from or
resulting in connection with any train  derailment,  and Pathnet hereby releases
Railroad  and its  Affiliates  from  any and all  claims,  liabilities,  losses,
damages,  causes of action, costs and expenses (including  reasonable attorneys'
fees  and  costs)  arising  from or  resulting  in  connection  with  any  train
operation,  accident  or  derailment,  irrespective  of  the  negligence,  gross
negligence  or willful  misconduct  of Railroad,  and (b) Pathnet  shall have no
liability relating to any Conduits  (Innerducts)  installed for or capacity sold
or made  available  to Railroad  pursuant to the  License  Agreement;  provided,
however,  that (x) any such Conduits  (Innerducts)  shall be of equal or greater
quality as Pathnet's own Conduits (Innerducts),  and (y) Pathnet shall grant the
same remedies to Railroad with respect to such capacity as Pathnet grants to its
customers in the ordinary course of its business (e.g., outage credits, it being
understood that Pathnet shall not be obligated to make any monetary  payments as
a remedy in connection with such capacity),  which Railroad acknowledges may not
provide it with any incremental benefit.

      17.5 Survival. The provisions of this Article 17 shall survive the
expiration or earlier termination of the Agreements.

                                       16
<PAGE>

18.   INSURANCE.

      18.1  Railroad  Protective  Liability  Insurance.  Before  any  period  of
construction of any portion of the System or Facilities  (including  preliminary
surveys and inspections),  Pathnet shall purchase, or cause its contractor(s) to
purchase,  and to  maintain  in  full  force  and  effect,  Railroad  Protective
Liability  Insurance  ("RPL")  naming  Railroad as the insured.  Said RPL policy
shall be written on the form  prescribed  in the  Federal  Aid  Highway  Program
Manual,  Volume 6, Chapter 6, Section 2,  Subsection  2, as amended from time to
time, or as  superseded  by the  AAR/AAHSTO  form,  and shall provide  available
limits of not less than  $5,000,000 per  occurrence,  $10,000,000  aggregate for
bodily  injury and  property  damage  (unless  Pathnet  designates  a  hazardous
material  Rail  Corridor as a Conduit  Right-of-Way,  and then  $10,000,000  per
occurrence,  $20,000,000  aggregate).  The  original of said RPL policy shall be
furnished to and approved by Railroad, prior to the commencement of any entry or
other operations under the Agreements.

      18.2 Liability Insurance.  Pathnet shall purchase and maintain,  until all
of  its  obligations  under  the  Agreements  have  been  fully  discharged  and
performed,  the following insurance  coverage:  (a) Commercial General Liability
Insurance ("CGL"),  including any applicable  umbrella policy,  with contractual
liability  covering actions assumed in the Agreements by Pathnet,  providing for
available limits of not less than $5,000,000 single limit,  bodily injury and/or
property damage combined, for damages arising out of bodily injuries to or death
of all  persons  in any one  occurrence  and for  damage  to or  destruction  of
property,  including the loss of use thereof,  in any one occurrence,  including
Federal Employers  Liability Act claims ("FELA") against the Railroad,  or other
liability  arising out of or  incidental  to railroad  operations;  (b) Workers'
Compensation, Employer's Liability Insurance and Occupational Disease Insurance;
and (c) Business Automobile Liability Insurance.  If any motor vehicles are used
in connection with the work to be performed under the Agreements,  Pathnet shall
purchase and maintain Business Automobile Liability Insurance with limits of not
less  than  $2,000,000  single  limit,  bodily  injury  and/or  property  damage
combined,  for damages to or destruction  of property  including the loss of use
thereof, in any one occurrence.  If, in Railroad's  reasonable opinion, a higher
limit of liability is necessary for any  insurance  policy  required  hereunder,
Railroad shall so notify  Pathnet and Pathnet shall,  within thirty (30) days of
receipt of such notice,  provide a copy of the  endorsement  to the  appropriate
policy increasing the liability coverage to the required limit.

      18.3  Policy  Requirements.  All  insurance  required  hereunder  shall be
effected by valid and  enforceable  policies  issued by  insurer(s) of financial
responsibility  and  authorized  to do business  in the states  where the System
and/or  Facilities are located,  all subject to the reasonable prior approval of
Railroad.  Except  for the RPL  policy  (on  which  Railroad  shall be the named
insured),  Pathnet's  liability  insurance  policies  shall name  Railroad as an
additional  insured and will not have any exclusions  for liability  relating to
railroad  operations by endorsement.  The Pathnet's  Workers'  Compensation  and
property   insurance  policies  shall  include  waivers  of  subrogation  rights
endorsements.  All  policies  shall  contain a  provision  for thirty (30) days'
written notice to Railroad  prior to any  expiration or  termination  of, or any
change in, the coverage  provided.  The  insurance  company shall be required to
provide  Railroad with at least thirty (30) days'  written  notice prior to such
expiration,  termination or change in any insurance coverage. Prior to any entry
upon the Rail Corridor  pursuant to the Agreements and upon  Railroad's  request
thereafter, Pathnet shall provide Railroad with the original RPL policy and with
certificates  of  insurance  for all other  coverages  showing that the required
coverages are in effect for the term of

                                       17
<PAGE>

the  Agreements.   The  liability  assumed  by  Pathnet  under  the  Agreements,
including, but not limited to, Pathnet's indemnification obligations,  shall not
be limited to the insurance coverage stipulated herein.

19.   NOTICES.

      19.1   General.   Unless   otherwise   provided   herein,   all   notices,
communications  and deliveries  required or permitted under the Agreements shall
be in  writing  and shall be (a)  delivered  personally,  (b) sent by  facsimile
transmission with subsequently  transmitted confirmation of receipt, (c) sent by
overnight  commercial  air  courier  (such as Federal  Express),  or (d) mailed,
postage prepaid,  certified or registered mail, return receipt requested; to the
parties at the addresses or facsimile numbers hereinafter set forth:

Pathnet:                                 Railroad:
- --------

Pathnet, Inc.                            CSX Real Property, Inc.
1015 31st Street, NW                     301 West Bay Street, Suite 800 (J915)
Washington, D.C.  20007                  Jacksonville, Florida  32202
Attention:     President                 Attention:  Assistant Vice President
               Network Services
Facsimile No:  (202) 625-7369            Real Estate Operations
                                         Facsimile No. (904) 633-4586

With a Copy To:                          With a Copy To:
- --------------

Pathnet, Inc.                            CSX Transportation, Inc.
1015 31st Street, NW                     500 Water Street (J150)
Washington, D.C.  20007                  Jacksonville, Florida  32202
Attention:     General Counsel           Attention:  Assistant General Counsel
Facsimile No:  (202) 625-7369            Facsimile No. (904) 359-7518

or at such other  address(es) or facsimile  number(s) as a party shall have duly
notified the other party.

In addition to the foregoing, any notice,  communication or delivery required or
permitted under Sections 17 and 18 shall also be sent to:

                                     CSX Corporation
                                     500 Water Street (J907)
                                     Jacksonville, Florida 32202
                                     Attention:    Risk Manager
                                                   Risk Management Department
                                     Facsimile No. (904) 633-5096

Any such notice,  communication  or delivery shall be deemed  delivered upon the
earliest  to occur  of:  (a)  actual  delivery;  (b) the  same day as  facsimile
transmission  (or the first  business  day  thereafter  if faxed on a  Saturday,
Sunday or legal holiday); (c) one (1) business day after shipment

                                       18
<PAGE>

by commercial air courier as aforesaid; or (d) upon receipt if sent by certified
or registered mailing as aforesaid.

      19.2 Planning, Design,  Installation and Construction Phase Access Notice.
During the Planning and Design and the  Installation  and  Construction  Phases,
Pathnet  shall,  except in the case of emergency,  give  Railroad's  Engineer at
least ten (10) days' written notice before  commencing  construction or bringing
any vehicle or equipment onto the Rail Corridor or other Railroad property,  and
forty-eight  (48) hours' notice before any other entry.  Any such written notice
shall state the name(s) of Pathnet  employee(s)  in charge or  contractor(s)  or
subcontractor(s) performing work or making such entry.

      19.3 Maintenance and Operation Phase Access Notice. During the Maintenance
and  Operation  Phase,  in order to secure  safety of  operated  trains,  crews,
passengers  and cargo of  Railroad,  and  safety  of  Pathnet  employees  and/or
contractors,  Pathnet  shall give  CSXT's  local  Director  of  Dispatch,  (904)
381-2765 and (904) 359-7551, as representative of Engineer, advance telephone or
telegraph  notice of entry onto any  portion of the Rail  Corridor,  which entry
shall be subject to consent and approval of Railroad's Engineer as to method and
timing,  which approval may be withheld in his or her sole discretion.  Any such
notice  shall state the name(s) of Pathnet's  employee(s)  or  contractor(s)  or
subcontractor(s) performing work or making such entry.

      19.4 Emergency  Notice. In case of disaster (such as a train derailment or
System failure) or other emergency demanding immediate examination or repairs to
the existing System or Facilities,  notice shall be given by either party to the
other in person or by telephone to the Emergency Response  Center(s)  designated
on Exhibit H attached hereto or as otherwise designated in writing by each party
to the  other.  Such  initial  verbal or  telephonic  notice,  however,  must be
confirmed in writing within  forty-eight  (48) hours.  Each party will cooperate
with the other to permit  restoration of each party's  operations as promptly as
feasible after such emergency.

20.   RELOCATIONS; ALTERATIONS.

      20.1 Relocation to Accommodate  Railroad.  If Railroad determines that any
Pathnet Facilities or System must be changed, altered or relocated after initial
construction  because of Railroad's  own track or facility  relocations  or rail
operational  needs  or  plans  (including  additions,  changes  to  track(s)  to
accommodate  freight or passenger  customers of Railroad),  or any  governmental
agency or  requirement,  Railroad  shall promptly give written notice thereof to
Pathnet of such needs, plans or requirements.  Within sixty (60) days of receipt
of such notice, Pathnet shall protect or move the Pathnet Facilities and System,
at Pathnet's sole cost and expense,  and in a manner  satisfactory  to Railroad;
provided,  however,  that Railroad shall reimburse Pathnet for any such costs or
expenses  received by Railroad  from a  governmental  entity or other  entity in
connection with such relocation.

      20.2  Relocation to  Accommodate  Third Party.  In the event of a Railroad
relocation  to  accommodate  any third  party  other than as provided in Section
20.1,  Pathnet shall protect or move its Facilities and System upon receipt from
Railroad of an agreement,  in writing,  obligating such third party to reimburse
Pathnet for all costs and  expenses  incurred by Pathnet,  including  reasonable
administrative and overhead, in connection therewith,  or, if Railroad is unable
to obtain such an  agreement  from such third  party,  Railroad's  agreement  to
reimburse Pathnet for the

                                       19
<PAGE>

foregoing costs (not to include any reimbursement of lost income). Pathnet shall
submit any invoice to  Railroad  within  ninety (90) days after such  relocation
work is completed.

      20.3 Replacement  Land. In the event of any relocation of Pathnet's System
or Facilities under Section 20.1, Railroad shall not be required to purchase for
Pathnet  any  replacement  land or  right-of-way  or to pay  Pathnet the cost to
secure same if there is not available Rail Corridor. However, Railroad agrees to
allow  Pathnet  to  relocate  to any other  available  adjacent  or nearby  Rail
Corridor  or other land owned by  Railroad  at  Pathnet's  sole cost;  provided,
however,  that Railroad shall not be entitled to any additional payment for such
replacement  Railroad  land or Rail  Corridor and the total mileage of such Rail
Corridor or replacement  land to which Pathnet  relocates shall be deducted from
and the  abandoned  Rail  Corridor  shall  be  added  to the  total  mileage  of
Designated Rail Corridor permitted under the License Agreement.

21.   LINE SALES; ABANDONMENT.

      21.1 In the  event  of a sale or  other  transfer  of any  portion  of the
Designated  Rail  Corridor,  such sale  shall be made  expressly  subject to the
Agreements and the rights of Pathnet  thereunder.  Notwithstanding any provision
herein to the  contrary,  Railroad  shall have the absolute  right,  in its sole
discretion, to effect an Abandonment of all or any portion of the Rail Corridor.

22.   CONDEMNATION.

      22.1  Severance  of  Interests.  In the  event  that  any  portion  of the
Designated Rail Corridor  becomes the subject of a condemnation or appropriation
proceeding or offer to acquire,  Pathnet's  interest (in its  Facilities  and/or
System and in its  occupation of the Segment)  shall be severed from  Railroad's
interest  (both  physical and  ownership  rights) in such  proceedings,  and the
parties agree to have any such condemnation or appropriation awards specifically
allocated between Pathnet's interest and Railroad's interest.

      22.2  Removal of  Facilities.  Should any Segment of the  Designated  Rail
Corridor  used by Pathnet for a part of  Pathnet's  Fiber  Optic  Communications
System  or  Facilities  be  condemned,   appropriated  and/or  acquired  by  any
governmental  agency (or other party  cloaked with the power of eminent  domain)
for  public  purpose  or use,  then to the  extent  required  by the  condemning
authority,  any  Facilities  or System of Pathnet  within such  Designated  Rail
Corridor not condemned, appropriated and/or acquired by such agency or authority
shall be promptly  removed by Pathnet at Pathnet's  cost,  unless  Pathnet makes
other arrangements with the condemning or appropriating agency or authority.

      22.3 Notice. Railroad shall promptly notify Pathnet of any condemnation or
appropriation  action filed against any portion of the Designated Rail Corridor.
Railroad shall also promptly  notify Pathnet of any threatened  condemnation  or
offer to acquire by any  governmental  agency (or other party  cloaked  with the
power of eminent domain)  affecting the Designated  Rail Corridor  (provided the
Railroad employees  administering this Agreement have actual knowledge thereof).
Further,  any  voluntary  sale to the  condemning  or  appropriating  agency  or
authority  pursuant to any threatened  condemnation or offer to acquire shall be
in accordance with the provisions of Article 21.

                                       20
<PAGE>

23.   PATHNET DISCONTINUANCE.

      23.1 In the event of any  Discontinuance  by  Pathnet  of its  Facilities,
System,  Segment or any  substantial  portion  thereof,  Railroad shall have the
option,  to be exercised  in  Railroad's  sole  discretion,  to  terminate  this
Agreement as to the affected  Segment(s)  upon written  notice to Pathnet.  Upon
such  termination,  removal  of  Pathnet's  Facilities  and System  within  such
affected Segment(s) shall be governed by Section 26.2 hereof.

24.   RAILROAD'S RIGHT TO TERMINATE OR REQUIRE SUSPENSION OF ACTIVITIES; FAILURE
      TO MAKE TIMELY PAYMENT

      24.1 Material  Breach;  Remedy.  If Pathnet or Railroad  fails to perform,
violates or defaults  under any material  terms or conditions of the  Agreements
("Material Breach"),  and fails to remedy any such Material Breach in accordance
herewith,  then and in that  event,  the  non-defaulting  party  shall  have the
following rights and remedies:

           (i) if the Material Breach (a) adversely  affects  railroad safety or
      operation,  or (b) relates to the payment of any fees and  expenses due to
      Railroad under the Agreements,  Railroad shall have the right to terminate
      this Agreement upon written notice to Pathnet; and

           (ii) if the Material  Breach is not of the type and nature  described
      in Subsection 24.1(i),  Railroad shall have the right, upon written notice
      to  Pathnet,   to  suspend   immediately   all  then  pending  and  future
      installation,  construction,  maintenance  and/or deployment on the entire
      Rail Corridor until such time as the applicable  Material  Breach is cured
      and  Pathnet  demonstrates  to  Railroad's  reasonable  satisfaction  that
      Pathnet has taken such steps and/or  implemented  such  procedures so that
      the particular Material Breach in question will not recur.

Upon  termination  as  provided  in this  Section  24.1,  removal  of  Pathnet's
Facilities and System shall be governed by Section 26.2 hereof. Railroad's right
to terminate this Agreement shall be limited to occurrences of Material Breaches
of the type and nature described in Subsection 24(i) above.

      24.2  Examples of Material  Breach.  For  purposes  of this  Article,  any
substantial noncompliance, or any repeated noncompliance, each of which might be
considered minor or singular,  may when considered in the aggregate constitute a
Material  Breach.  In  illustration,  but  without  limitation,  failure to give
required  notices,  or failure to give  required  approvals  without  cause,  or
failure to comply with final decisions under the Dispute  Resolution  provisions
of Article 25, may constitute a Material Breach.

      24.3 Notice and Cure Period. Pathnet and Railroad agree that neither party
shall  proceed  against the other for any  alleged  Material  Breach  before the
offending  party has had written notice and reasonable  time to respond and cure
such breach;  provided,  however,  that neither  party shall be required to give
time to  respond  and cure if any such  delay  will  cause  irreparable  harm or
increased risk of liability or injury. Reasonable time to respond and cure shall
for  purposes of  Subsections  24.1(i)(b)  and 24.1(ii) be presumed to be thirty
(30)  days,  and  for  purposes  of  Subsection  24.1(i)(a)  be  presumed  to be
forty-eight (48) hours. If such breach cannot

                                       21
<PAGE>

reasonably be cured within the  applicable  cure period,  but the party proceeds
promptly to cure the same and prosecutes such cure with due diligence,  the time
for curing such breach shall be extended for such  reasonable  period of time as
may be necessary  under the  circumstances  to complete  the cure,  but under no
circumstances  shall such additional  period extend beyond,  (i) for purposes of
Subsection 24.1(ii),  one hundred eighty (180) days without the specific written
approval of the non-breaching party, which such approval may be withheld in such
party's reasonable  discretion,  and (ii) for purposes of Subsection  24.1(i)(a)
and (b),  thirty (30) days. With respect to any Material Breach (i) which is not
cured by the  breaching  party within the  applicable  cure period,  or (ii) for
which an  opportunity  to cure is not  required to be given,  the  non-breaching
party  may,  at its sole  option,  cure any such  breach in the  manner it deems
appropriate.  In such event,  the  breaching  party,  within thirty (30) days of
written demand and without deduction,  set-off or abatement, shall reimburse the
non-breaching  party  for any and  all  expenses  incurred  as a  result  of the
non-breaching  party's  curing of such  default  together  with  interest at the
Default Rate. Nothing contained herein shall create an obligation on the part of
the  non-breaching  party to cure any uncured breach  existing at any time under
the Agreements.

      24.4 No Continuing Waiver. Any waiver by any party at any time of any of
its rights under the Agreements shall not be deemed to be a continuing waiver of
any breach or default or other matter subsequently occurring.

      24.5 Waiver of Certain  Damages.  Except as otherwise  provided in Section
6.5 of the License  Agreement,  neither party shall be liable to the other party
for  any  consequential,  indirect,  special,  exemplary  or  punitive  damages,
including, but not limited to, damages attributable to or based upon any loss of
present or future profits,  any loss of or injury to customer  goodwill,  or any
lost or foregone investments and opportunities.

25.   LIAISON; COORDINATION AND DISPUTES RESOLUTION.

      25.1  Specified  Disputes.  The parties intend that any disputes which may
arise between them relating to access to the Rail Corridor, or the design, plan,
construction,  installation,  operation,  maintenance,  repair, replacement, and
removal  of  Pathnet's  Facilities  or  System  or the  safe  and  uninterrupted
operation of the rail system of Railroad (a "Specified  Dispute") be resolved as
quickly  as  possible,  which  may,  in  certain  instances,  involve  immediate
decisions.  When such quick  resolution is not possible,  or depending  upon the
phase of installation of Pathnet's  Facilities and System,  the parties agree to
resolve such Specified Disputes as herein provided.

      25.2 Field Representatives.  Within thirty (30) days after the designation
by Pathnet of the Route Plan as  provided  in Exhibit B,  Railroad  and  Pathnet
shall each  designate  in writing  the  division or field  representative(s)  as
point(s) of contact for decision making concerning the Specified Disputes.

      25.3 Railroad Operations. Questions of Railroad operations or track safety
shall in all instances be referred to Railroad's Engineer, whose decision shall,
for any emergency  situation,  be made within twenty-four (24) hours, or for any
non-emergency situations, be made as provided in Section 25.7.

      25.4 Access. Specified Disputes concerning Pathnet's right of access to
the Rail Corridor during the Planning and Design and Installation and
Construction Phases, including use

                                       22
<PAGE>

of an  on-rail  plow  installation  machine  under  Exhibit  B,  or  during  the
Maintenance and Operation Phase, or access to or copies of Railroad's documents,
shall be referred  initially to the designated  representative  of the Engineer,
who shall render such decision within  twenty-four (24) hours.  Decisions of the
Engineer's designated  representative shall be referable within twenty-four (24)
hours of such decision,  by Pathnet to the Engineer of Railroad,  whose decision
shall be issued  within  twenty-four  (24) hours of the notice  from  Pathnet of
dispute with the authorized representative of Engineer.

      25.5 Reserved.

      25.6  Communications  Facilities.  Specified Disputes arising out of or in
conjunction  with  the  communications  System  or  Facilities  of  Pathnet,  of
Railroad,  or of both, or the capacity and/or  installation,  maintenance and/or
use of the same,  shall be referred  initially to Pathnet's  system  manager (or
other  representative  designated  by  Pathnet)  for  decision,  which  shall be
rendered, in writing, within thirty (30) days after submission.

      25.7 Remaining Specified Disputes. Any other Specified Dispute between the
parties shall be referred initially to the Engineer for decision, which shall be
rendered, in writing, within fifteen (15) days after submission.

      25.8 Mediation or  Arbitration.  Either party may appeal any decision made
pursuant to Sections  25.2  through 25.7 by  requesting  either  arbitration  or
mediation  within thirty (30) days after the date of receipt of such decision in
writing. Failure to request mediation or arbitration within such thirty (30) day
period shall result in such decision becoming final and conclusive. The selected
arbitration or mediation shall proceed in Jacksonville,  Duval County,  Florida,
in accordance with the Arbitration or Mediation  Resolution  Procedures attached
hereto as Exhibit K. Any arbitration decision or mediation  agreement,  or other
final decision herein, may be enforced by any court having jurisdiction hereof.

      25.9 Work Pending  Resolution of Specified  Dispute.  During the period in
which any Specified  Dispute is unresolved,  any work on the Rail Corridor by or
for Pathnet  shall  commence or proceed only with maximum  security for Railroad
operations,  as determined  by Railroad's  Engineer,  and the  determination  or
allocation  of  any  costs  or  additional  costs  therefor  shall  be  resolved
thereafter in accordance with this Article.

26    TERMINATION; REMOVAL.

      26.1  Partial  Termination.  Pathnet may  terminate  the  Agreements  with
respect to any individual  Segments of the Designated  Rail Corridor at any time
during the Term by providing  Railroad with six (6) months' prior written notice
of such  termination.  Such  termination  shall  be  only  with  respect  to the
specified   Segment(s)  of  the  Designated  Rail  Corridor  identified  in  the
termination  notice and shall not affect the continuation of the Agreements with
respect to the remaining  Segments of the Designated  Rail  Corridor.  With such
partial termination, all further obligations (other than obligations which arose
prior to such  termination  and any  provisions  hereof  which are  intended  to
survive the  expiration  or other  termination)  shall cease only as to affected
Segment(s) and all terms and conditions of the Agreements shall remain unchanged
and in full force and effect as to the remaining  Segments within the Designated
Rail Corridor. In the event of any partial termination hereunder,  Pathnet shall
not be entitled to any refund, rebate or

                                       23
<PAGE>

set off  relating  to the  consideration  paid or given  pursuant to the License
Agreement nor any adjustment to the mileage bank.

      26.2 Removal Upon  Termination.  Within ninety (90) days of the expiration
or earlier or partial  termination  of the  Agreements (or such longer period as
may be reasonably  necessary to remove Pathnet's  Facilities and System provided
Pathnet  begins  removal  within  such  ninety  (90) day  period  and  continues
diligently to completion),  Pathnet,  at its own risk,  cost and expense,  shall
remove all above ground Facilities, System and appurtenances from the Designated
Rail  Corridor,  all  underground  Optical  Fibers,  and such other  underground
Facilities,  System and appurtenances as Pathnet desires or Railroad  reasonably
requests so as to avoid interference with Railroad  operations,  and restore the
Designated  Rail  Corridor  and  other  affected  property  of  Railroad  to the
functional  or  operational  condition  existing  prior to the  construction  or
installation of such Facilities,  System and appurtenances.  If Pathnet fails to
timely remove the System and Facilities and restore the Designated Rail Corridor
and other affected property as provided in the preceding sentence, Pathnet shall
be deemed to have abandoned such  Facilities and System in place, in which event
such  Facilities and System shall become the property of Railroad,  for purposes
of resale,  use or  operation  by  Railroad  in any  manner and for any  purpose
Railroad deems appropriate,  in its sole discretion;  or Railroad may cause such
removal and  restoration  to be performed and all costs  incurred by Railroad in
such removal and  restoration,  together  with  interest  thereon at the Default
Rate, shall be due and payable by Pathnet to Railroad upon written demand.

      26.3 Continuing Obligations.  The expiration or earlier termination of the
Agreements shall not release any party from any liability or obligation incurred
prior to such  expiration  or  termination  or terminate any right or obligation
which would have  continuing  relevance  after such expiration or termination of
this Agreement.  Without limiting the foregoing, the indemnification obligations
of Pathnet,  the rights of Railroad to review  Pathnet's books and records,  and
such other provisions which are reasonably intended to have continuing validity,
shall survive the expiration or earlier termination of the Agreements.

27.   DOCUMENT CONFIDENTIALITY.

      27.1  General.   Railroad  and  Pathnet  understand  and  agree  that  the
Agreements,  and all materials,  maps,  documents and other information that are
referred  to therein or  attached  thereto,  exchanged  between  the  parties in
negotiating the Agreements,  or utilized in fulfilling the provisions and intent
hereof or thereof,  are and shall be confidential,  except as may be required by
law or  regulation.  Any public  announcement  or press release  concerning  the
Agreements  by either party shall be subject to the prior  approval of the other
party, which approval shall not be unreasonably withheld.

      27.2 Restricted  Distribution.  Railroad and Pathnet each agree to respect
such confidentiality,  and shall restrict the distribution of the Agreements and
such  materials  only to those Persons  designated  to implement the  provisions
hereof,  and shall not  disclose or furnish to any third  parties  copies of the
Agreements  or any  materials  referred  to herein,  without  the prior  written
consent of the other party hereto or,  subject to Section 27.3, a Court Order or
Administrative  Subpoena  requiring  same,  except as may be  required by law or
regulation.  The parties agree that in distributing  copies or portions of these
materials to Persons necessary to

                                       24
<PAGE>

implement  the  same,  such  copies  or  materials  shall be  clearly  marked as
confidential,   and  indicating  that  the  further  distribution,   copying  or
reproduction of the same is expressly prohibited.

      27.3 Redacted Copy. The parties shall jointly  prepare  redacted copies of
the Agreements which may be furnished,  as necessary to implement the provisions
hereof, to (a) Arbitration  Panel, (b) Court, (c) Administrative  Tribunal,  (d)
mortgagee(s)  or other  financial  backers of either party,  and (e) prospective
users of Pathnet's Conduit  (Innerduct),  Cable, Optical Fiber or other Facility
authorized in accordance with the Agreements.

      27.4 Injunctive  Relief.  The parties  recognize and acknowledge  that any
actual or  threatened  disclosure  of such  confidential  information  by either
party, its agents, employees or contractors,  will cause irreparable harm to the
other  party,  such that  monetary  remedies  available  at law will not provide
adequate relief,  and therefore the aggrieved party shall be entitled to receive
injunctive relief as an equitable remedy.

      27.5 No Right to  Non-Material  Information.  Neither party shall have the
right to obtain  any  information  or  documents  from the  other  which are not
material to the provisions or implementation of the Agreements.

28.   GENERAL TERMS.

      28.1 Entire  Agreement.  The  Agreements,  and any exhibits or  amendments
which may be attached thereto from time to time, constitute the entire agreement
between the parties hereto with respect to the subject matter thereof and may be
modified only by a writing executed by both parties.

      28.2 Incorporation by Reference. The Agreements, as amended by the parties
from time to time in accordance  therewith,  shall be  incorporated by reference
into any Build Supplement, separate finance agreement or other document executed
between the parties,  and such  incorporation  shall include all  amendments and
exhibits to the Agreements,  even if made or attached  subsequent to the date of
the Agreements.

      28.3 No Third Party  Beneficiaries.  Except as  otherwise  provided in the
Agreements,  nothing contained therein,  in any provision or exhibit thereof, or
in any  agreement  or  provision  included  by  reference,  shall  operate or be
construed as being for the benefit of any third person.

      28.4 Interpretation. Neither the form of the Agreements, nor any provision
therein,  shall be  interpreted or construed in favor of or against either party
hereto as the sole drafter thereof.

      28.5 Force Majeure. The parties agree that a party shall not be liable for
its failure to perform its obligations under the Agreements during any period in
which such  performance is delayed by fire,  flood,  war,  embargo,  riot, labor
strike  or  unrest,  the  intervention  of  any  government   authority,   train
derailment,  or any other event or condition  outside the reasonable  control of
such party,  provided that such party  promptly  notifies the other party of the
delay and the reason(s) for such delay.  The provisions of this paragraph  shall
not apply to Pathnet's payment obligations under the License Agreement.

                                       25
<PAGE>

      28.6  Reasonableness.  Wherever  the  term  "reasonable"  is  used  in the
Agreements,  the term shall mean:  for  Railroad,  application  of standard  and
established railroad  engineering,  operating and safety rules,  regulations and
procedures;  for  Pathnet,  application  of  standard  and  established  carrier
engineering and operating rules.

      28.7  Approval or Consent.  Wherever the term  "approval"  or "consent" is
used in the Agreements,  unless otherwise specifically qualified, the term shall
mean that such  "consent"  or  "approval"  shall not be  unreasonably  withheld,
delayed or conditioned.

      28.8 Parties.  Wherever used in the Agreements,  the terms  "Railroad" and
"Pathnet"  shall be  construed  in the  singular  or plural as the  context  may
require or admit, and shall include the permitted successors and assigns of such
parties.

      28.9   Severability.   The  Agreements  are  executed  under  the  current
interpretations  of  applicable  federal,  state,  county,  municipal  and local
statutes,  ordinances  and  laws.  However,  each  separate  division  (section,
paragraph,  clause, item, term, condition,  covenant or agreement) thereof shall
have  independent  and severable  status for the  determination  of the legality
thereof.  If any separate division is determined to be void or unenforceable for
any  reason,  such  determination  shall  have no effect  upon the  validity  or
enforceability of each other separate division, or any combination thereof.

      28.10 Governing Law; Venue. The Agreements shall be construed and governed
under  the laws of the State of  Delaware.  It is the  particular  intent of the
parties that the indemnification  obligations  contained in the Agreements shall
be enforceable and shall not be deemed to be against public policy.  The parties
consent to the personal  jurisdiction  of and to  exclusive  venue in the United
States  District Court in and for the Middle  District of Florida,  Jacksonville
Division.

      28.11 Assignability.

            (a) Except as  otherwise  specifically  provided in the  Agreements,
Pathnet  shall not assign or transfer  any right or  interest in the  Agreements
without the prior written consent of Railroad,  which consent may be withheld in
Railroad's sole discretion. The above requirement for consent shall not apply to
(i) any  disposition of all or  substantially  all of Pathnet's stock or assets;
(ii) any corporate merger, consolidation or reorganization, whether voluntary or
involuntary,  involving  Pathnet;  or  (iii) a  sublease  or  assignment  of the
Agreements  (in whole or in part) by  Pathnet  to a  subsidiary,  affiliate,  or
parent company, controlled by, under common control with, or controlling, either
indirectly or directly, Pathnet, provided that no assignment not consented to by
Railroad shall relieve  Pathnet of any of its  obligations or liabilities  under
the Agreements and, provided further, that such Assignee agrees in writing to be
bound by the terms of the Agreements.  Nothing herein shall prohibit Pathnet (i)
from  involving  contractors,   or  strategic  or  co-development   partners  in
construction  and  operation  of the fiber  optic  facilities,  on such terms as
Pathnet may determine in its sole  discretion,  provided all such activities are
conducted  in  accordance  with the terms of the  Agreements,  and that  Pathnet
remains  fully liable for all  obligations  thereunder;  and (ii) from  granting
liens or other  security  interests in the fiber optic  facilities  or Pathnet's
rights under the Agreements in connection  with  financing or  investments  made
available to Pathnet; provided that all such parties agree that, if and to the

                                       26
<PAGE>

extent they acquire an ownership interest thereunder, they shall be bound by and
shall comply with the terms of the Agreements.

            (b) Upon  request by  Pathnet,  Railroad  shall  execute  reasonable
documentation  to be provided by Pathnet  acknowledging  the rights of Pathnet's
lender(s)  ("Lender") to obtain  ownership of any fiber optic  facilities if the
Agreements  are still in effect and  Pathnet is in  material  default  under the
terms of Pathnet's loan to Lender,  provided,  however, that in such case Lender
shall agree in writing  that it shall become an assignee to the  Agreements  and
shall become subject to all rights and obligations of Pathnet under the terms of
the  Agreements  (and Pathnet also shall remain  subject to all  obligations  of
Pathnet  under the  Agreements).  In addition  to the rights  granted to Pathnet
under the Agreements,  Pathnet's  Lender shall have the additional right to take
possession,  sell,  assign or  otherwise  transfer  any fiber optic  facilities,
including the right to operate,  or permit a third-party  to operate,  any fiber
optic  facilities,  provided  such  operation  shall be subject to all terms and
conditions of the  Agreements  and provided  further that Railroad shall approve
such party, in Railroad's reasonable discretion.

            (c)  Railroad  may  assign  the  Agreements  to any  Affiliate,  any
purchaser(s)  of the Designated  Rail Corridor to the extent  applicable to such
Rail Corridor,  or any Person in connection with any merger or  consolidation of
Railroad,  provided that any such  assignment  shall be subject to the terms and
conditions of this Agreement.

      28.12 Time is of Essence. Time is of the essence in the performance of
each party's obligations under the Agreements.

      28.13  Incorporation of Exhibits.  All exhibits attached to the Agreements
are  incorporated  by this  reference and made a part of the  Agreements for all
purposes.

      28.14 Multiple Counterparts. Each of the Agreements may be executed in
several counterparts, each of which shall be deemed an original, and such
counterparts shall constitute one and the same instrument.

      28.15  WAIVER  OF JURY  TRIAL.  RAILROAD  AND  PATHNET  HEREBY  KNOWINGLY,
VOLUNTARILY AND INTENTIONALLY WAIVE ANY RIGHT EITHER MAY HAVE TO A TRIAL BY JURY
IN RESPECT OF ANY  LITIGATION  BASED ON,  ARISING OUT OF, UNDER OR IN CONNECTION
WITH THE AGREEMENTS OR ANY DOCUMENTS  CONTEMPLATED  TO BE EXECUTED IN CONNECTION
THEREWITH OR ANY COURSE OF CONDUCT, COURSE OF DEALINGS, STATEMENTS (WHETHER ORAL
OR WRITTEN) OR ACTIONS,  RIGHTS OR OBLIGATIONS OF EITHER PARTY ARISING OUT OF OR
RELATED IN ANY MANNER TO THE  AGREEMENTS  (INCLUDING,  WITHOUT  LIMITATION,  ANY
ACTION TO RESCIND OR CANCEL THE  AGREEMENTS OR ANY CLAIMS OR DEFENSES  ASSERTING
THAT EITHER OF THE AGREEMENTS WAS  FRAUDULENTLY  INDUCED OR IS OTHERWISE VOID OR
VOIDABLE).  THIS WAIVER IS A MATERIAL  INDUCEMENT  FOR THE PARTIES TO ENTER INTO
AND ACCEPT THE AGREEMENTS.

      28.16 Authorization. Railroad and Pathnet represent and warrant that each
has obtained all necessary corporate approvals authorizing the execution and
delivery of the Agreements, and

                                       27
<PAGE>

that the execution and delivery of the Agreements  will not violate the articles
of  incorporation  or by-laws of such  corporation,  and will not  constitute  a
material breach of any contract by which such corporation is bound.

                                       28
<PAGE>

            EXECUTED as of the Effective Date.

Witness:                            CSX TRANSPORTATION, INC.,

                                    For  itself  and as  Operator  for New  York
                                    Central Lines LLC, a wholly-owned subsidiary
                                    of Consolidated Rail Corporation

   /s/ Shawn illegible                  By: /s/ J. Randall Evans
- --------------------                     --------------------------------
   illegible                          Name:
- --------------------                Title:

Witness: illegible                   PATHNET TELECOMMUNICATIONS, INC.
      Matthew Harris
                                       By:   /s/ Richard Jalkut
                                         --------------------------------
                                      Name:
                                     Title:  CEO

                                       29
<PAGE>
                                   EXHIBIT A-1

                 [To be provided upon designation of the route]

                                   EXHIBIT A-2

                 [To be provided upon completion of the route]

<PAGE>

                                    EXHIBIT B

1.   ROUTE DESIGNATION; DOCUMENTATION; INSPECTION; ACCESS.

     1.1  Documentation.  Railroad shall furnish to Utility,  electronically  if
available,  at Utility's cost,  copies of Valuation Maps with available  indices
thereto  within  thirty  (30)  days of the date of  Utility's  written  request.
Railroad shall make available to Utility,  for  reproduction  at Utility's cost,
all available Railroad engineering documents relating to bridges,  overpasses or
tunnels on or along such Route Plan.  Railroad shall also furnish,  at Utility's
cost,  copies of maps or other  documents to assist Utility in  determining  the
identity  and  location of other  users of those  portions  of  Railroad's  Rail
Corridor  designated on Utility's Route Plan. The furnishing of maps,  documents
or other materials hereunder,  however,  shall not be a guarantee by Railroad of
the accuracy or completeness of same.

     1.2  Inspection.  Railroad  agrees to  participate  with Utility in a joint
inspection of those  portions of the Railroad  Corridor  designated on Utility's
Route Plan for the  purpose of  identifying  problem  areas and  defining  final
Conduit Right-of-Way routes or alternatives. Railroad also agrees to participate
in any  additional  joint  inspections  that may be required  for the purpose of
detailing and developing solutions for problem areas.

     1.3 Route Plan. Prior to the preparation of detailed  Construction Plans as
contemplated  in Section 1.7,  Utility shall submit to Railroad a proposed Route
Plan marked on Railroad  Valuation Maps.  Railroad shall review and, through its
Engineer,  approve or reject the  proposed  Route Plan.  If rejected for reasons
other  than  Railroad's  plans to Abandon a Segment  of the  Railroad  Corridor,
Railroad  shall  cooperate  with  Utility  to  locate  an  alternative  mutually
acceptable  route along Railroad's Rail Corridor to the extent  available.  Upon
Railroad's  approval of Utility's  proposed Route Plan, such approved Route Plan
shall be attached to this Agreement as Exhibit A-1, for the purpose, among other
things, of defining the Designated Railroad Corridor.

     1.4 Planning and Design  Phase.  From and after the date of  submission  by
Utility  to  Railroad  of  Utility's  Route  Plan,  Utility  and its  designated
employees,  agents  and  representatives  shall have the right to enter upon any
portion of Rail  Corridor  shown on such Route Plan for a period of one  hundred
eighty (180) days for the purpose of surveying and inspecting the same,  subject
to all applicable notice,  approval and other applicable  requirements contained
in this Agreement (the "Planning and Design Phase").

     1.5 Conditions of Right of Entry. All surveys or route  inspections (or any
other entry by Utility  hereunder) shall be made upon reasonable  advance notice
to and at times  satisfactory  to  Railroad,  in a manner so as not to interfere
with operations of Railroad,  and shall be at the sole risk, cost and expense of
Utility. Rights of entry shall not be unreasonably withheld or delayed.

     1.6  Construction Planning Schedule. Utility shall furnish to Railroad a

                                                                               1
<PAGE>

proposed schedule of construction and installation  (commencement and completion
dates) on each  portion of the  Designated  Rail  Corridor  to be  utilized  for
Utility's System. Said schedule of construction shall be sufficient to allow the
coordination of Railroad, Utility and construction personnel and operating train
movements.  Utility  shall  schedule  installation  and  construction  to  avoid
disruption of Railroad operations  (including operation of freight and passenger
trains.  Utility may request  Railroad to  reschedule  or divert  trains,  where
possible, to minimize disruption of Utility's construction schedule, and, to the
extent  possible and  practical,  as solely  determined by Railroad's  Engineer,
Railroad shall make such diversion or rescheduling.  Utility further  recognizes
that regulations of the Federal Railroad  Administration (FRA) may require "Slow
Orders"  to be issued by  Railroad  to trains  operating  in areas of  Utility's
construction,  and that such "Slow Orders" may cause delays in train  movements,
including delays in movement of freight and passenger trains.  Additional costs,
expenses  or losses to Railroad  generated  by any "Slow  Order",  rescheduling,
delay or diversion  (including detours or rerouting)  resulting from any request
of or actions or omissions of Utility,  its  employees,  agents,  contractors or
subcontractors,  or which results from any Fouling of Track(s),  plus any damage
to or destruction of Railroad's  signals,  tracks or other facilities  resulting
therefrom, shall be reimbursed by Utility.

     1.7  Construction  Plans.  Whenever Utility desires to install or construct
any part or  portion  of its  Facilities  or System,  including  any  structural
attachments,  within the Designated Rail Corridor,  Utility shall submit written
notice (the "Construction  Notice") in two (2) signed counterparts,  accompanied
by four (4) copies of the relevant  Construction  Plans, to Railroad's  Engineer
for consent and approval of Railroad,  which approval shall not be  unreasonably
withheld or delayed.  Upon approval by Railroad,  one (1) signed  counterpart of
the  Construction  Notice  shall be returned by  Railroad.  Upon  receipt of the
signed  counterpart  of the  construction  Notice by Utility,  the  Construction
Notice and the  Construction  Plans so  approved  shall be  considered  as being
incorporated into and made a part of this Agreement for all purposes.

     1.8 Limited Scope of Approval. Railroad's right of approval of Construction
Plans,  and the location of Utility's  Facilities and System,  and the nature of
Transmission  Technology shall apply only to the extent that construction or use
of  Facilities,  System or  Transmission  Technology  may affect train or signal
operations or the use of Railroad's Rail Corridor.

     1.9  Installation  and  Construction  Phase.  From  and  after  the date of
Railroad's approval of Utility's Construction Plans, as provided in Section 1.7,
Utility, its employees,  agents and/or contractors,  shall have the right, for a
period of one hundred  eighty  (180) days,  to enter and  construct  and install
Utility's  Facilities and System on that Segment  designated in the Construction
Plans.  Utility shall  coordinate with, and secure advance written approval from
Railroad's Engineer, for all access to track and Restricted Working Area of Rail
Corridor,  understanding  that the  operation  of Railroad  trains over any Rail
Corridor shall have priority.  Construction  and  installation  shall also be in
accordance with Fiber Optic Installation SOP (Standard Operating Procedure,  MWI
1905-01, Issued 6/30/98), a copy of which is attached hereto as Exhibit M.

     1.10 As-Built Drawing. Within ninety (90) days after completion of

                                                                               2
<PAGE>

construction and installation of each Segment of Utility's System, Utility shall
furnish to  Railroad  an  As-Built  Drawing,  referencing  Railroad  stationing,
Valuation Maps and mileposts for such Segment,  which, when approved by Railroad
and as  amended  from time to time,  shall be  collectively  attached  hereto as
Exhibit A-2.

     1.11  Maintenance  and Operation  Phase.  Only after  construction  of each
Segment  of  Utility's  System  and  approval  by  Railroad's  Engineer  of  the
applicable  As-Built  Drawing,  shall  Utility,  its  employees,  agents  and/or
contractors, be permitted operational and maintenance access to such Segment, in
accordance  with  the  provisions  of  this  Agreement.  With  respect  to  each
independent Segment, the period after the Planning and Design Phase but prior to
the approval of the applicable  As-Built  Drawing is herein sometimes called the
"Installation  and Construction  Phase" and the period after the approval of the
As-Built  Drawing is herein  sometimes  called the  "Maintenance  and  Operation
Phase."

     1.12 Reinstallation, Replacement and Removal. The provisions of this
Article 1 shall apply to any reinstallation, replacement or removal of any
Facilities by Utility.

2.   SURVEYS AND RECORDS; COSTS.

     2.1 Railroad Maps and Surveys.  Railroad  shall, at Utility's cost and upon
Utility's written request,  furnish to Utility a copy of its current System Map,
System Diagram Map and Valuation Maps for Segments  identified in the Route Plan
as System Segments.  Railroad,  however,  shall not be deemed to have guaranteed
the accuracy of any map, survey or related records made available to Utility.

     2.2  Utility Maps, Surveys and Records.

          (a) If Utility  performs or contracts to perform formal surveys of the
Rail Corridor,  or any constructed Conduit  Right-of-Way,  Utility shall furnish
Railroad,  upon request,  a copy thereof,  at Utility's cost,  subject to lawful
limitations of survey contracts and applicable laws. Utility shall not be deemed
to have  guaranteed  the  accuracy  of such  surveys.  If Utility is required or
chooses to secure  and/or file any surveys  for any of its  Facilities,  Utility
shall bear the total cost thereof.

          (b) Any copies or records made or data compiled by Utility relating to
Railroad's  Rail Corridor  (including but not limited to: maps;  plans;  photos;
video tapes; motion pictures; notes; survey data; cassette tapes and other types
of records and measurements) shall become the sole property of Utility. However,
subject to the document confidentiality provisions hereof, Utility shall provide
such data or records to Railroad.

          (c) Utility shall, at its expense,  furnish Railroad,  annually, a map
of  Utility's  Fiber Optic  Communication  System  ("Fiber  Optic  System  Map")
depicting the location of Utility's Facilities and System on the Designated Rail
Corridor and fiber count by Segment.

          (d)  Utility shall update its Fiber Optic System Map after each new

                                                                               3
<PAGE>

Segment is constructed, and shall include a copy of the relevant portion thereof
with each As-Built Drawing required in Section 1.10.

3.   LOCATION OF UTILITY FACILITIES.

     3.1  Perimeter  Location.  Occupation  by  Utility  of  the  Rail  Corridor
(including  any  portion  that shall  pass  along or through an active  operated
Railroad yard,  terminal or station)  shall be confined  where  practical to the
outer  perimeter  of the Rail  Corridor,  yard,  etc.  Minimum  distance  to the
centerline  of the nearest  track shall be eleven  feet (11')  unless  otherwise
specifically  agreed in writing by Railroad.  The exact location and depth shall
be determined on a  case-by-case  basis during the Planning and Design Phase for
the Facilities.

     3.2 Railroad  Tunnels.  The installation of Cable in Railroad tunnels shall
be avoided whenever possible, by the installation of Cable over Railroad tunnels
within Railroad Rail Corridor.  Where such  installation  over the tunnel is not
reasonably possible, and after specific written approval by Railroad's Engineer,
Cable  shall be laid or  installed  within  existing  conduits  or ducts,  where
available and in usable  condition,  or within suitable  conduit  (nonflammable,
inert material pipe) installed by Utility on the floor level of the tunnel, at a
point farthest away as practical from the nearest operated rail or track.

     3.3  Entrance  into Tunnel or onto  Bridge.  Any entrance by Utility or its
employees, agents or contractors into Railroad's tunnel, onto Railroad's bridge,
or on Railroad's property adjacent to a bridge or tunnel for any purposes, shall
be in accordance with the provisions of Article 12 of this Agreement.

4.   CONDUIT (INNERDUCT)/CABLE INSTALLATION AND CONSTRUCTION.

     4.1 Underground Installation.  In all situations where reasonably possible,
Conduit   (Innerduct)   or  Cable  shall  be  installed   by  Utility,   or  its
contractor(s),  underground,  and in  accordance  with the  "Specifications  for
Underground  Cables Occupying Railroad Rail Corridor" attached hereto as Exhibit
E.   Notwithstanding  any  contrary  provisions  contained  in  Exhibit  E,  the
installation  depths  and  limits of Cable or  Conduit  (Innerduct)  shall be as
follows:

          (a) Where Cable crosses underneath tracks, whether mainline, secondary
or industrial, Cable must be installed in Conduit (Innerduct);

          (b)  Cable to be installed within fifteen linear feet (15') of the
centerline of any tracks, shall be installed in Conduit (Innerduct);

          (c) Conduit  (Innerduct)  installation is not required for Cable to be
installed more than fifteen linear feet (15') from the centerline of any tracks;

          (d) The depth of Conduit  (Innerduct)  under  tracks  shall be no less
than sixty  inches  (60")  below the  bottom of ties,  for a length at least two
linear feet (2') beyond the outer end of such ties;

                                                                               4
<PAGE>

          (e) Where on-rail  plowing is authorized,  as provided  herein,  Cable
and/or  Conduit  (Innerduct)  shall  be  installed  at a depth  of no less  than
forty-two inches (42") below ground surface;

          (f) Cable or Conduit  (Innerduct) to be installed within twelve linear
feet (12') of the centerline of the nearest track shall be at a depth of no less
than forty-two inches (42") below ground surface;

          (g) Cable or Conduit  (Innerduct)  to be installed  twelve linear feet
(12') or more away from the  centerline  of the nearest track shall be installed
at a depth of no less than thirty-six inches (36") below ground surface.

     4.2 On-Rail Plow. Subject to the sole discretion and approval of Railroad's
Engineer for exact  location of use,  scheduling  and  utilization of an on-rail
plow  machine,  Utility  shall  have  the  right to  utilize  such  machine  for
construction  purposes.  If such use is  approved,  Railroad  will  provide  all
necessary work trains and crews at Utility's sole cost and expense to facilitate
use of such  machine.  When  within  fifteen  feet  (15') of any  signal  wires,
culverts,  grade crossings or other Railroad facilities,  Utility must cease all
rail plow  installation and (a) utilize only  hand-trenching,  behind (trackside
of) any Railroad facilities or obstructions (signals, signal boxes, relay cases,
etc.)  which  have wire or Cable  connections  to any  track,  and/or  (b) place
Utility  Conduit  (Innerduct)  or Cable only to the front  (fieldside)  thereof.
Utility shall pay for any repairs to signal wires, culverts,  grade crossings or
other Railroad facilities damaged by said plowing or trenching.

     4.3  Aerial  Attachments.  In  situations  where  Utility  determines  that
underground installations are not reasonably practicable, installations shall be
by aerial  attachments in accordance with the Association of American  Railroads
"Communications  Manual Part 1-B-1,  Paragraphs A through S" and "Specifications
for the Construction of Railroad Communication Pole Lines, Section K", copies of
which are  attached  hereto  collectively  as Exhibit F.  Details of each aerial
section of Cable shall be shown where  appropriate as a part of the Construction
Plans and As-Built Surveys  furnished to Railroad for approval as required under
this Agreement.

     4.4 Water Crossings.  In the event that Utility elects to perform submarine
Conduit (Innerduct) or Cable installation rather than installation by attachment
to Railroad's  existing pole lines or fixed or movable  bridges,  such submarine
installation  shall be  performed by Utility or its  contractor(s)  at Utility's
sole risk, cost and expense.

     4.5  Bridge  Attachments.   Attachment  to  all  Railroad  bridges,   where
attachment to an adjacent parallel pole line is not desired by Utility, shall be
as prescribed in the  "Specifications  for the  Attachment of Cables to Railroad
Bridges", a copy of which is attached hereto as Exhibit G.

     4.6  Public Roadway Crossings. Cable or Conduit (Innerduct) crossing under
public roadways shall be at a location and depth as required by any applicable
federal, state or local laws, regulations or lawful orders. To the extent not
pre-empted by such

                                                                               5
<PAGE>

authorities, such installation shall also be in accordance with Exhibit E.

     4.7 Public Utility Crossings. Cable or Conduit (Innerduct) crossing over or
under public  utilities  shall be located and installed in  accordance  with all
applicable  federal,  state and local laws,  regulations and lawful orders,  and
such  lawful  requirements  as may be  stipulated  by  any  governmental  agency
(including operators of rail passenger services) or public authority.  If in the
conduct of any work, any changes or alterations  in pipelines,  sewers,  drains,
conduits,  fences,  power,  signal or  communication  lines or other  utility or
Railroad  facilities are necessary  (either temporary or permanent) by reason of
the  foregoing or the  requirements  of Railroad,  such changes shall be made or
caused to be made solely by Utility at  Utility's  sole risk,  cost and expense;
provided,  however,  that  costs and  expenses  for any such  work,  changes  or
alterations  necessitated  by any other  third party shall be paid by such third
party.

     4.8  Emergency Repair. Emergency Cable installation, maintenance or repair
methods shall be as set forth in Exhibit H attached hereto.

                                                                               6
<PAGE>

                                    EXHIBIT C

                                      LEASE

     THIS LEASE, made as of this ____ day of ______________, ______, between CSX
TRANSPORTATION,  INC., a Virginia corporation, [as operator for New York Central
Lines LLC, a Delaware  limited  liability  company]  whose  address is 500 Water
Street, Jacksonville,  Florida 32202 ("Lessor"), and Pathnet Telecommunications,
Inc.,  a  Delaware  corporation,   whose  address  is  1015  31st  Street  N.W.,
Washington, D.C. 20007 ("Lessee"):

                                    RECITALS

     A.   Lessor and Lessee have entered into those  certain  Fiber Optic Access
          and License Agreement and Right of Way Operating Agreement dated as of
          ____________________, as amended and supplemented from time to time by
          the parties (the "Base Agreement").

     B.   The Base Agreement  contemplates Lessee's use of certain land owned by
          Lessor for the placement of non-cable  facilities  including  Repeater
          (Regen)  Sites,  or power or auxiliary  power  stations,  or sites for
          construction facilities or temporary storage of materials and fuel for
          power stations.

     C.   In order to implement the provisions of the Base Agreement, Lessor and
          Lessee  desire to enter  into this  Lease for the  premises  described
          herein and on the terms and conditions set forth herein.

     NOW, THEREFORE,  in consideration of the mutual covenants set forth herein,
the rental to be paid by Lessee and other good and valuable  consideration,  the
receipt  and  sufficiency  of which are hereby  acknowledged,  Lessor and Lessee
hereby agree as follows:

1.   INCORPORATION OF RECITALS.

               The parties represent and acknowledge that the foregoing recitals
are true and correct and are incorporated herein by this reference.

2.   DESCRIPTION OF PREMISES.

               Lessor does  hereby  lease unto  Lessee  that  certain  parcel of
unimproved land (exclusive of tracks and roadbed) located and more  particularly
described or depicted on Exhibit "A" attached  hereto and by this reference made
a part hereof (the "Premises").

3.   CERTAIN DEFINITIONS.

     3.1 General Interpretive Principles.  For purposes of this Lease, except as
otherwise  expressly  provided herein or unless the context otherwise  requires:
(i) the terms used herein  include the plural as well as the singular,  (ii) the
use of any gender herein shall be deemed to include the other gender,  (iii) the
word "including"  means  "including,  but not limited to," and (iv) the headings
used herein shall not describe,  interpret, define or limit the scope, extent or
intent of any provision hereof.

     3.2 Definitions. Except as otherwise expressly defined in this Article 3 or
otherwise  herein,  the  capitalized  terms  used in this  Lease  shall have the
meanings set forth in the Base Agreement.

               3.2.1 "Lessee"  shall mean Lessee as defined in the  introductory
paragraph   of  this  Lease,   any   successor  by  merger,   consolidation   or
reorganization, and its permitted assigns.

               3.2.2 "Lessor"  shall mean Lessor as defined in the  introductory
paragraph of this Lease,  any of its  predecessor  railroads,  any  successor by
merger, consolidation or reorganization, and its permitted assigns.

               3.2.3  The  term  "damages"  shall  mean  any  and  all  damages,
including,  but not limited to, civil,  criminal,  compensatory,  consequential,
direct, indirect, treble, punitive, exemplary and special damages and all other

                                        1
<PAGE>

damages and penalties of any kind available at law and/or in equity.

4.   PERMITTED USE.

     Lessee  shall use and occupy the Premises in  accordance  with Section 21of
the Base Agreement, and for no other purpose (the "Permitted Use").

5.   RENT.

     Lessee  shall pay to Lessor,  as base rent for the  Premises,  the sum of *
DOLLARS ($*.00) per * payable * in advance from the date hereof for the duration
of the Term ("Base Rent"). Lessee shall pay all real estate taxes levied against
the Premises and the cost of any Lessee  improvements placed on the Premises and
all costs of or  charges  for  water,  sewage,  electricity,  heat and any other
utilities furnished to the Premises.  If any of the foregoing is paid by Lessor,
Lessee shall reimburse Lessor, as additional rent, within thirty (30) days after
presentation  to Lessee of bills therefor  ("Additional  Rent").  The payment by
Lessee of any sum in  advance  shall not  create  an  irrevocable  lease for the
period for which the same is paid.  Lessor  reserves  the right to  periodically
adjust the Base Rent any time after the expiration of twelve (12) months (and to
adjust any adjusted rent  thereafter),  by giving  notice of such  adjustment to
Lessee at least sixty (60) days prior to the effective date of such  adjustment.
Lessee's continued occupation of the Premises after such effective date shall be
deemed an acceptance of such adjusted Base Rent.

6.   APPROVAL OF PLANS, TRACK CLEARANCE.

     Lessee,  prior to placing any  improvement  on the  Premises,  shall submit
plans to, and secure approval in writing of, Lessor,  which such approval may be
withheld in Lessor's sole discretion.  Lessee shall not erect, place or allow to
be erected or placed on the  Premises  any  buildings,  structures,  fixtures or
obstructions of any kind, either temporary or permanent, within twenty-five feet
(25') of the  centerline of the nearest  track,  unless Lessee obtains the prior
written  consent of Lessor,  which may be withheld in Lessor's sole  discretion;
provided that the foregoing shall not be construed to permit any track clearance
less than the minimum required by any applicable law, rule, order or regulation.
Any  approval by Lessor of any  improvement  or  alteration  made by Lessee,  or
failure of Lessor to object to any work done or material  used, or the method of
construction  or  installation,  shall  not  be  construed  as an  admission  of
responsibility  by Lessor or as a waiver of any of  Lessor's  rights  under this
Lease.

7.   FIRE PREVENTION.

     Lessee shall  cooperate with the Risk  Management  Department of Lessor and
shall  promptly  comply  with  fire  prevention   measures   requested  by  said
Department.  Lessee shall make no electrical installations or alterations in and
to the improvements or electrical or other circuits  (whether for power,  light,
heat or other  purposes) now or hereafter  located on the Premises,  except by a
duly  licensed  electrician,  and shall make no  installation  of  natural  gas,
propane,  kerosene or other combustion fuel heating or cooling units,  except by
licensed  heating or cooling  contractor.  No such  alterations or installations
shall be made  without  prior  written  approval  of  Lessor's  Risk  Management
Department, which may be withheld in its sole discretion.

8.   PERMITS, ORDINANCES, REGULATIONS:

     8.1 Lessee, at Lessee's sole cost and expense,  shall obtain any applicable
permits  and  shall  comply  with all  applicable  permits,  ordinances,  rules,
regulations,   requirements  and  laws  of  any  Governmental  authority  having
jurisdiction  over the Premises or the Permitted Use thereof or the placement or
use of any improvements  thereon,  including but not limited to zoning,  health,
safety,  building or  environmental  matters.  Lessee shall  supply  Lessor with
copies of all permits and letters or certificates of such authority's consent to
and/or approval of Lessee's use of the Premises.

                                        2
<PAGE>

     8.2 Lessee shall further  defend,  indemnify and hold Lessor  harmless from
all losses,  damages,  costs of defense (including attorneys' fees) and costs of
compliance relating to any ordinance, rule, regulation,  law, citation, order or
notice, any violation thereof, any penalty, levy, fine or assessments therefrom,
including  any penalty,  levy,  fine,  assessment,  compliance  cost or remedial
charge  levied during the Term,  or after  termination  of this Lease for events
arising during this Lease.

9.   MAINTENANCE, REPAIRS AND COSTS.

     Lessee will not create or permit any nuisance in, on or about the Premises,
and Lessee shall repair and maintain, at its sole cost and expense, the Premises
and any  improvements  thereon,  in a neat and clean condition to the reasonable
satisfaction of Lessor.

10.  SERVICES, UTILITIES.

     Lessor will be under no obligation to furnish the Premises with water, gas,
sewage, electricity,  heat, or other services and supplies that may be necessary
or desirable in connection with Lessee's use and occupancy of the Premises.

11.  ADJACENT AREAS.

     Except as provided in Article 12 hereof,  Lessee shall not use any property
of Lessor other than the Premises herein leased without first obtaining Lessor's
prior written consent and complying with all  requirements of Lessor  applicable
thereto,  including  payment  of such  charges,  costs or fees as  Lessor  deems
appropriate, in its sole discretion.

12.  INGRESS AND EGRESS.

     Lessee  shall  have the right to use,  in common  with  Lessor  and  others
authorized by Lessor,  existing driveways or other property designated by Lessor
as the means of ingress to and egress from the  Premises.  Lessor shall be under
no obligation  with respect to the condition or maintenance of said  driveway(s)
or other  property,  and  Lessee's  use of same  shall be  subject to all of the
covenants, terms and conditions of this Lease.

13.  PIPE AND WIRE LINES.

     Lessor shall at all times have the right to maintain and/or construct,  and
to permit others to maintain and/or construct,  overhead and/or underground pipe
and/or wire lines now or hereafter installed upon or across the Premises, and to
use, repair, renew, replace and remove the same.

14.  CLAIM OF TITLE.

     Lessee  shall not at any time claim  ownership  of or any  right,  title or
interest  in or to the  Premises,  nor shall the  exercise of this Lease for any
length of time give rise to any right,  title or interest in or to the Premises,
other than the leasehold herein created.

15.  MECHANIC'S LIENS.

     Lessee shall promptly pay all debts incurred by, and shall promptly satisfy
all liens of, its contractors, subcontractors,  mechanics, laborers and material
men in respect to any construction,  alteration, maintenance or repair of, in or
to the Premises,  and any improvements thereon, and shall indemnify,  defend and
hold Lessor harmless from and against all losses, damages,  penalties, fines and
legal  costs  and  charges,  including  attorneys'  fees  incurred,  in any suit
involving any lien, the  enforcement  or  satisfaction  thereof,  or encumbrance
caused by the same,  with  respect to the  Premises  or any part  thereof or any
improvements  thereon.  Further,  Lessee  shall have no  authority to create any
liens for labor or material on or against  Lessor's or Lessee's  interest in the
Premises,  and  shall  so  specify  in all  contracts  let  by  Lessee  for  any
construction,  erection, installation,  alteration, maintenance or repair of the
Premises or any improvement thereon.

                                        3
<PAGE>

16.  TERM, TERMINATION, BREACH, REMOVAL:

     16.1 The  initial  term of this  Lease  shall be one (1)  year,  and  shall
thereafter run year-to-year (the "Term"). This Lease may be terminated by either
party  for any  reason  and at any time upon not less  than  three  (3)  months'
written  notice.  Notwithstanding  the  foregoing,  in the  event of a breach by
Lessee  of any  covenant,  term  or  condition  of  this  Lease  or of the  Base
Agreement, Lessor may, at its sole option, terminate this Lease immediately.

     16.2 Upon the expiration or earlier termination of this Lease, Lessee shall
immediately  vacate the Premises.  Within ninety (90) days of the  expiration or
earlier  termination of this Lease,  Lessee,  at its own risk, cost and expense,
shall  remove all  improvements  erected or used by Lessee on the  Premises  and
shall restore the Premises to the functional and operational  condition existing
prior to the  execution  of this  Lease.  If within such ninety (90) day period,
Lessee fails to remove such  improvements and restore the Premises  accordingly,
Lessee shall be deemed to have  abandoned its  improvements  in place,  in which
event such  improvements  shall become the  property of Lessor,  for purposes of
resale,  use or  operation  by Lessor in any manner and for any  purpose  Lessor
deems appropriate,  in its sole discretion; or Lessor may cause such removal and
restoration to be performed and all costs incurred by Lessor in such removal and
restoration, together with interest thereon at the highest non-usurious interest
rate  allowed by law,  shall be due and payable by Lessee to Lessor upon written
demand.

     16.3 The expiration or earlier  termination of this Lease shall not release
either party from any liability or obligation  incurred prior to such expiration
or termination nor terminate any right or obligation reasonably intended to have
continuing validity hereunder.

17.  RELOCATION.

     Lessor shall have the sole and absolute  right to require the relocation of
the  Premises,  including any  improvements  thereon.  The terms and  conditions
applicable thereto shall be as stated in the Base Agreement.

18.  LIABILITY, INDEMNITY.

     18.1  In  addition  to the  indemnification  obligations  stated  elsewhere
herein,  Lessee hereby releases  Lessor,  assumes  responsibility  for and shall
defend, indemnify and hold Lessor harmless from and against all losses, damages,
claims,  fines,  costs (including  attorneys' fees) and expenses arising from or
relating to:

          (a)  any breach of this Lease by Lessee,

          (b)  any  violation  by Lessee of any law,  rule,  regulation,  order,
               notice,  ordinance  or  any  other  requirement  of a  public  or
               governmental authority,  including Lessee's failure to obtain any
               necessary approval, consent or permit,

          (c)  any damage (including environmental damage) to the
               Premises, improvements or other property,

          (d)  any bodily injury,  including  death,  of any person,  including,
               without   limitation,   the   agents,   employees,   contractors,
               licensees,  permittees  and  invitees  of Lessor  or  Lessee  and
               trespassers,  which  occurs on the  Premises  or  relates  to any
               action or omission on the Premises, and

          (e)  any liability arising from or relating to the condition
               of the Premises, or Lessee's use or occupancy thereof or
               placement or use of any improvements thereon,

whether caused by the fault, failure or negligence of Lessee, Lessor or
otherwise.

     18.2 Lessee agrees it shall not have and hereby  completely  and absolutely
waives its right to any claim  against  Lessor for damages or any other legal or
equitable  relief  on  account  of any  deficiencies  in  Lessor's  title to the
Premises.  Lessee shall  indemnify and hold Lessor harmless from and against all
claims,  litigation  and damages for trespass,  slander of title,  overburden of
easement, or other claims arising out of or based upon Lessee's use or occupancy
of the Premises or any placement or use of any improvements thereon.

                                        4
<PAGE>

     18.3 Nothing contained herein shall amend, alter, modify, abridge or affect
the  provisions  of  the  Base  Agreement  relating  to  indemnification  or the
allocation of liability.

     18.4 The  provisions  of this Article 18 shall  survive the  expiration  or
earlier termination of this Lease.

19.  INSURANCE AND LIABILITY.

          Each and every policy of insurance  required  under the Base Agreement
shall,  prior to and during  Lessee's  use or  occupancy  of the Premises or any
placement or use of any improvements  thereon, be amended or modified to provide
such coverage for Lessee's obligations hereunder,  Lessee's use and occupancy of
the Premises and Lessee's placement or use of improvements thereon. Lessee shall
provide  Lessor's  Risk  Management   Department,   500  Water  Street  (J-907),
Jacksonville,  FL 32202 with certified  copies,  except that, in the case of the
Railroad  Protective  Liability ("RPL") Policy,  the original,  of the insurance
policies  amended or  modified in  accordance  herewith.  If, in  Lessor's  sole
opinion,  higher  limits of insurance  coverage are  necessary,  Lessor shall so
notify  Lessee  and Lessee  shall,  within  thirty  (30) days of receipt of such
notice,  provide to Lessor's Risk Management Department a certified copy (or the
original  for the RPL  Policy)  of the  endorsement  to the  appropriate  policy
increasing the liability  coverage to the required limit. The liability  assumed
by  Lessee  under  this  Lease,   including,   but  not  limited  to,   Lessee's
indemnification  obligations,  shall not be  limited to the  insurance  coverage
stipulated herein.

20.  CONDEMNATION.

     Should the Premises or any part thereof be condemned,  appropriated  and/or
acquired for public use, then Lessor,  at its sole option,  may  terminate  this
Lease.  No part of any  damages or award shall  belong to Lessee,  except to the
extent of any specific award from the governmental authority for improvements of
Lessee.  The Premises shall be valued as vacant land,  without  consideration of
this  Lease or  Lessee's  improvements  on the  Premises  as an  enhancement  or
detriment to said value.  Improvements of Lessee not so condemned,  appropriated
and/or acquired shall be removed in accordance herewith.

21.  SUCCESSORS, ASSIGNS; NO TRANSFER, SUBLEASE OR ASSIGNMENT.

     21.1 The terms,  covenants and provisions hereof shall inure to the benefit
of and be binding upon the  successors  and assigns of Lessor and the successors
and permitted assigns of Lessee.

     21.2 The  foregoing  notwithstanding,  Lessee shall not  transfer,  assign,
encumber  or sublet  this  Lease or any part of the  Premises  or any  rights or
privileges  herein granted,  without the prior written consent of Lessor,  which
may be withheld in Lessor's sole discretion.  The foregoing  covenant shall also
apply  whether  such  sale  or  transfer  is  made   voluntarily  by  Lessee  or
involuntarily  in any  proceeding  at law or in equity to which  Lessee may be a
party whereby any of the rights, duties and obligations of Lessee shall be sold,
transferred, conveyed, encumbered, abrogated or in any manner altered. Any sale,
conveyance,  transfer,  assignment,  sublease, abrogation or encumbrance of this
Lease,  all or any portion of the  Premises or any of the rights and  privileges
hereunder in violation of this Article 21 shall be null and void and Lessor,  at
its sole option, may terminate this Lease.

22.  BANKRUPTCY RIGHTS.

     It is expressly  understood  and agreed that in the event of any assignment
for the benefit of creditors,  or in the event a petition in bankruptcy shall be
filed by Lessee,  or if Lessee  shall be adjudged  bankrupt or  insolvent by any
court,  or if a trustee  in  bankruptcy  or a  receiver  of  Lessee or  Lessee's
property  shall be  appointed  in any suit or  proceeding  brought by or against
Lessee, and if at such time this Lease is in default by Lessee, then and in such
event Lessor, at its sole option,  may (i) immediately  terminate this Lease, or
(ii) may request an  election of  affirmance  or  rejection  of this Lease under
Section  365 of the  Bankruptcy  Act by  giving  Lessee  or any  such  assignee,
trustee,  or receiver written notice of such demand for election.  If Lessee, or
such  assignee,  trustee or  receiver,  fails to elect  affirmance  and fails to
furnish  adequate  assurances as to the payment of Lessee's  existing and future
indebtedness to Lessor and continued  performance under the Lease,  Lessee shall
be deemed to have  rejected  the same.  If Lessee or such  assignee,  trustee or
receiver shall

                                        5
<PAGE>

reject or be deemed to have  rejected  this  Lease,  this Lease  shall be deemed
immediately  terminated.  If Lessee or such assignee,  trustee or receiver shall
affirm this Lease, it shall  thereupon be bound by all terms hereof,  including,
without  limitation,  the  obligation  to  make  payment  of all  sums  then  or
thereafter due from Lessee hereunder.

23.  SEVERABILITY, GOVERNING LAW, WAIVER, NOTICES.

     23.1 Each and every  separate  division  (paragraph,  clause,  item,  term,
condition,  covenant or agreement)  herein  contained shall have independent and
severable status from each other separate division,  or combination thereof, for
the  determination  of  legality,  so that if any  separate  division  herein is
determined to be unconstitutional,  illegal,  violative of trade or commerce, in
contravention of public policy, void, voidable, invalid or unenforceable for any
reason,  that separate division shall be treated as a nullity,  but such holding
or  determination  shall have no effect upon the validity or  enforceability  of
each  and  every  other  separate  division  herein  contained,   or  any  other
combination thereof.

     23.2 This  Lease  shall be  governed  by the laws of the State in which the
Premises are located.  Nothing  contained  herein  shall amend,  alter,  modify,
abridge or affect the provisions of the Base Agreement  relating to the parties'
choice of governing law as to the rights and obligations contained therein.

     23.3 No  waiver  by Lessor of any  breach  of any  covenant,  condition  or
agreement herein contained shall operate as a permanent waiver of such covenant,
condition,  or agreement,  or of any subsequent  breach  thereof.  No payment by
Lessee or receipt by Lessor of a lesser amount than the  installments of rent or
other sums due hereunder shall be deemed to be an acceptance thereof or a waiver
of any of Lessor's  rights  hereunder or a discharge of any obligation of Lessee
hereunder.  Lessor shall have the right, in its sole  discretion,  to apply such
payment to any  indebtedness  owing from  Lessee to Lessor.  No  endorsement  or
statement on any payment or letter  accompanying such payment shall be deemed an
accord and satisfaction, and Lessor may accept such payment without prejudice to
Lessor's right to recover any outstanding  balance or to pursue any other remedy
provided in this Lease.  No  re-entry  by Lessor  after a breach or  termination
shall  be  considered  an  acceptance  of a  surrender  of the  Premises  unless
specifically agreed to in writing by Lessor.

     23.4  All  notices  and  communications  required  or  permitted  under  or
otherwise  concerning  this Lease shall be addressed to Lessor or to Lessee,  as
appropriate,  at their respective  addresses set forth herein,  or at such other
address as either party may  designate in writing to the other party.  Copies of
any notices or communications required or permitted under Section 18 or 19 shall
be provided to Lessor's Risk  Management  Department,  500 Water Street (J-907),
Jacksonville, FL 32202.

24.  OTHER PROVISIONS.

     None

                                        6
<PAGE>

     IN  WITNESS  WHEREOF,  the  parties  hereto  have  caused  this Lease to be
executed, in duplicate, as of the day and year first above written.

                                    "LESSOR"
                                    CSX TRANSPORTATION, INC.
                                    [as operator for New York Central Lines LLC,
                                    a Delaware limited liability company]

Witnesses:

____________________________        By:_________________________________
                                    Name:_______________________________
____________________________        Title:______________________________

                                    "LESSEE"
                                    PATHNET TELECOMMUNICATIONS, INC.
                                    Name:_______________________________
____________________________        Title:______________________________

                                        7
<PAGE>
                                    EXHIBIT D
                                   ---------

                                   [LOGO ART]

                 When working along the Rail Road Right of Way

Make  sure you have all the  other RR  Tenants  notified  before  digging.  Long
Distance Telecommunications Companies use RR ROW to route very small Fiber Optic
Cables  which  carry  huge  volumes  of  Telecommunications  traffic  including:
Banking, Stock Markets,  Point of Sale, 911, FAA and Government.  Not to mention
YOUR Family trying to call one another.

        LONG DISTANCE PHONE CO.

<TABLE>
<S>                      <C>
WORLDCOM                 1-800-248-0133
AT&T                     1-800-252-1133
MCI                      1-800-624-9675
SPRINT                   1-800-521-0579
QWEST                    1-800-283-1237
Interstate FiberNet      1-800-374-2350
</TABLE>

           ONE-CALL CENTERS
<TABLE>
<S>                      <C>
Alabama                  1-800-292-8525
Connecticut              1-800-922-4455
DC                       1-800-257-7777
Delaware                 1-800-282-8555
Florida                  1-800-432-4770
Georgia                  1-800-282-7411
Illinois (Chicago)       1-312-744-7000
Illinois                 1-800-892-0123
Indiana                  1-800-382-5544
Kentucky                 1-800-752-6007
Louisiana                1-800-272-3020
Massachusetts            1-888-344-7233
Maryland                 1-800-257-7777
Maryland                 1-800-282-8555
Maine                    1-888-344-7233
Michigan                 1-800-482-7171
Mississippi              1-800-227-6477
North Carolina           1-800-632-4949
New Hampshire            1-888-344-7233
New Jersey               1-800-272-1000
New York City
 (Long Island)           1-800-272-4480
New York                 1-800-962-7962
Ohio                     1-800-362-2764
Pennsylvania             1-800-242-1776
Rhode Island             1-888-344-7233
South Carolina           1-800-922-0983
Tennessee                1-800-351-1111
Virginia (South)         1-800-552-7001
Virginia (North)         1-800-257-7777
Vermont                  1-888-344-7233
West Virginia            1-800-245-4848
</TABLE>

                                       .48
<PAGE>
                                 CSXT EXHIBIT E

SPECIFICATIONS FOR UNDERGROUND COMMUNICATIONS AND POWER CABLE CROSSINGS AND
LONGITUDINAL OCCUPANCY UNDER TRACKS AND RIGHTS OF WAY

A.     PURPOSE OF SPECIFICATIONS

       The  purpose  of these  specifications  is to  govern  the  location  and
       installation of underground communication and power cables crossing under
       the track(s) and/or CSXT right of way in a manner that will not interfere
       with present and future CSXT construction operations.

B.     GENERAL LOCATION OF UNDERGROUND FACILITIES

       1.     The cable or duct system of proposed  underground  crossings shall
              be laid as  straight  and direct as  possible  between  the points
              where the underground line enters and leaves the property of CSXT.

       2.     Manholes,  pull and splice boxes, and terminals in the underground
              crossings  should  be  located  off  CSXT's  right  of  way  where
              possible,  or at the  outer  edge  of the  right  of way  when  on
              Railroad property.  If the structures must be located further from
              the right of way  line,  and  nearer  the  track(s),  they must be
              installed below ground, and marked with identification  flush with
              the ground.

C.     DESIGN CRITERIA FOR UNDERGROUND FACILITIES

       1.     The tops of conduits and/or ducts and cable system structures of
              underground cable crossings shall be located at a depth of not
              less than 60 inches below the bottom of the crossties. In
              addition, the installations shall be at least 36 inches below the
              bottom elevations of ditches or 42 inches below ground level for
              parallel installations with the lowest depth governing. Where
              rail-plow is authorized, conduit or cable shall be at a depth of
              not less than 42 inches below ground level.

              When  installations  are  proposed  by rail  plowing,  the minimum
              offset  from the  centerline  of the near track  shall not be less
              than 15 feet. When  installations are proposed by tractor plowing,
              they shall be located more than 15 feet from the centerline of the
              near track.  Tractor  plowing  will not be  permitted  on railroad
              embankments  without specific site approval.  The proposed conduit
              installations shall not be located less than 5 feet from CSXT code
              cables. Plowing through

<PAGE>

              public  or  private  road  crossings  will not be  permitted.  All
              drainage structures will be located and marked prior to plowing or
              trenching.

              Unless otherwise approved,  manholes, hand hole/splice boxes shall
              be located at least 25 feet from the  centerline of the near track
              where right of way is available.  Unless otherwise approved, bored
              conduits  shall clear signal  control  building  and  appurtenance
              foundations  by 5 feet  vertically.  The  conduits are to be clear
              such facilities  horizontally by 5 feet if trenched and 10 feet if
              bored.

       2.     Underground crossings of power supply cables with a maximum
              voltage of 750 volts may be installed by pushing or boring a
              galvanized steel pipe under the tracks at a depth specified above
              to serve as a conduit, provided such pipe extends at least 25 feet
              beyond the outside rail on each end of the crossing and the top of
              pipe casing is buried at least 60 inches below the bottom of the
              crossties and 36 inches below ditch bottoms at all other points on
              the property of CSXT. Longitudinal occupancy shall be approved by
              the Chief Engineer to ensure that such proposed occupancy does not
              impair the normal functioning of Train Control equipment.

              Measurements  to the ends of the conduits  shall be to the head of
              the outside rail and made at right angles to the track. Additional
              lengths will be required for  crossings in fill sections and those
              at  angles  of less  than  ninety  degrees  (90  degrees)  and for
              multi-track  crossings.  Generally,  on fills, two feet beyond the
              toes of the  slopes  or three  feet  beyond  the  ditch  should be
              sufficient,  (refer  to  Attachment  No. 1 and No.  2).  All ducts
              and/or   encasement   beneath   the  tracks  must  be  capable  of
              withstanding E-80 loading and conform to A.R.E.MA. Part 5, Section
              5.3.  Conduits and/or encasement larger than four (4) inches shall
              be governed by the specifications  which normally cover pipelines.
              Jacking or boring installation is preferred, and no water is to be
              used in the installation of the encasement.

       3.     Underground crossings of communications cables of low voltage
              shall conform to number "2" above, except that encasement may, at
              the discretion of the Chief Engineer or his authorized
              representative, be restricted to 15 feet beyond the outside rail
              of spur or sidetracks measured at right angles to the track. As in
              number "2" above, additional lengths will be required for
              crossings in fill sections, etc. These criteria shall also apply
              to paved street sections.

       4.     Underground crossings of power supply cables operating above 750
              volts will be installed at depths specified above. In addition,
              between the points where the underground crossings enter or leave
              CSXT

                                        2
<PAGE>

              property,  the cable is to be enclosed in galvanized steel pipe or
              in an approved concrete encased duct for mechanical  protection of
              the cable. No cable of this potential, which is unprotected,  will
              be  permitted.  Longitudinal  occupancy  shall be  approved by the
              Chief  Engineer to ensure that such  proposed  occupancy  does not
              impair the normal function of Train Control equipment.  If risk to
              inductive  interference is perceived,  a further  examination by a
              third party may be required.

       5.     Owners of the conduits and cables shall designate the locations of
              such installations to aid in the prevention of damage to the cable
              as a result of use of Railroad's property.  Signs or markers shall
              be placed and  maintained  preferably at or near the CSXT right of
              way  line.  The  signs/markers   shall  describe  the  underground
              facility  and include a  telephone  number of the  facility  owner
              clearly visible on each side of the track.

       6.     In addition to the requirements of these specifications, the
              underground crossing is to conform to the requirements of the
              National Electrical Safety Code, as published by the National
              Standards Institute, Inc., the latest revised edition of same
              being controlling. The crossing is also to conform to the
              requirements of any local or state laws or regulations of any
              local code enforcing authority that may be in effect at the time
              of the installation.

       7.     All applications for underground facilities described in this
              document shall be submitted to the appropriate Division Engineer
              or Manager, or his or her designated representative(s) having
              jurisdiction and must be accompanied by complete location and
              construction plans referenced to CSXT's milepost. No work is to be
              performed on CSXT property prior to granting of authority from the
              Division Engineer or Manager. All work on the property will be
              performed under the supervision of the Division Engineer or
              Manager. The applicants shall bear any expense incurred by CSXT or
              its forces, will execute the appropriate agreement and pay all
              fees and rentals as required by established standards or as
              negotiated.

       8.     Conduit  shall be so  installed  as to prevent the  formation of a
              waterway under the railroad,  with an even bearing  throughout its
              length,  and  shall  slope  to one end  (except  for  longitudinal
              occupancy).

       9.     Bored or  jacked  installation  shall  have a bored  hole with the
              diameter  essentially  the  same as the  outside  diameter  of the
              conduit plus the  thickness of any  protective  coating.  If voids
              should develop or if the hole diameter is greater than the outside
              diameter of the conduit  (including  coating) by more than one (1)
              inch, remedial measures, as

                                        3
<PAGE>

              approved by the railroad's Chief Engineer,  shall be taken. Boring
              operations  shall  not  be  stopped  if  such  stoppage  would  be
              detrimental to the railroad.

       10.    Conduits and cables shall be  installed by plowing  methods  where
              practical. Directional boring, and trench and back fill techniques
              shall be used in those locations where plowing is impractical.  In
              all cases,  the  condition  of the right of way will be  restored,
              including  vegetation and erosion controls to CSXT's satisfaction,
              and in  accordance  with current CSXT  specifications  for grading
              work.

       11.    All bridge attachment designs must be approved by CSXT. All
              designs are to provide for attachment to the outside of the bridge
              structures. Insertions or burial of casing and/or conduit where
              the ballast is carried across bridge decks will not be approved
              except for aesthetic or historic reasons. Steel pipe casing with
              adequate provision for contraction and expansion shall be used to
              support the conduit. Core drilling for installation of casing
              through bridge back walls, head walls, and wing walls shall be
              located not less than one core diameter from the top or outside
              face of the wall. Steel sleeves secured by approved grout material
              shall be installed in bores through concrete walls prior to the
              installation of casing. All FRA and OHSA safety rules for bridge
              worker safety shall apply when work is performed on bridges. Care
              must be taken to ensure metallic conduit shall not impair or
              circumvent Train Control circuitry.

              Excavation  by blasting  methods  shall be employed only as a last
              resort, must be approved by CSXT in writing in each instance,  and
              must comply with Sections  1..3..5..9..  of the Manual for Railway
              Engineering, refer to Attachment No 3.

       12.    Point of Presence, Regeneration and Junction Sites are to be
              located not less than 25 feet from the centerline of the near
              track. Service and access roads are to be located not less than 25
              feet from the centerline of the near track. These site
              installations shall not interfere with existing drainage
              structures and systems, or service roads. Sites involving
              buildings or other types of sight obstructions shall be located in
              accordance with CSXT crossing sight distance criteria, refer to
              Attachment No. 4 and No. 5.

       13.    The  owners of the  proposed  installations  are  responsible  for
              coordination  with all existing  utilities located on the right of
              way during design and  construction,  and  maintaining  the proper
              clearances.   The  owners  of  the  proposed   installations   are
              responsible  for  obtaining  all  construction  and  environmental
              permits, and compliance with their

                                        4
<PAGE>

              requirements.   The  owners  of  the  proposed  installations  are
              responsible for  confirmation of title to right of way through CSX
              -- Real Property, Inc.

       14.    Design Plans - All plans shall be submitted to CSXT for review and
              approval. No work is to be initiated without approved plans on
              site. Plans shall be drawn to scale showing the relation of the
              proposed cable system to railroad tracks, railroad signals and
              control facilities, angles of crossings, locations of bores,
              manholes, hand holes, railroad survey stations, railroad mile
              posts with prefixes, right of way lines and general layout of
              tracks and facilities, etc. Also, drawings must show number of
              conduits, size and location of cable in the conduit, fiber count
              in each cable, and details of bridge attachments. A general
              location map together with a legend indicating line and symbol
              designations with on/off milepost (nearest 0.1 mile) is to be
              included. CSXT reserves the right to require plan modifications
              during construction to protect railroad facilities and operations.

D.     CONSTRUCTION OPERATIONS

       Construction  operations  shall be  planned  and  organized  to  minimize
       conflicts with railroad operations. All operations are to be conducted in
       accordance with CSXT Safe Way policies and procedures, and are subject to
       CSXT approval.

       1.     Pre-construction conferences shall be held prior to beginning work
              on  the  right  of  way.   Additional   progress  meetings  and/or
              teleconferences  may be  required  during  the course of the work.
              Coordination  shall be  provided  as  outlined  in CSXT MWI  1905.
              Complete work schedules will be presented at the  pre-construction
              conference. The schedules are to be updated monthly at a minimum.

       2.     All construction operations shall be conducted in compliance with
              CSXT MWI 1905 and the CSXT Fiber Optic Program Safety Requirements
              approved 09-09-98, refer to Attachment No. 6.

              All  personnel on the projects  shall have  received CSXT Safe Way
              (including  FRA OTS) training  prior to entering the right of way.
              Proof  of  training  may  be  required  at  anytime.  Construction
              operations  shall be  conducted  in  accordance  with FRA and OSHA
              regulations,  and coordinated  with and subject to the approval of
              the CSXT Chief  Engineer  for Design  and  Construction,  the CSXT
              Service Lane or Business Unit Division Engineer,  the CSXT Flagmen
              and Signalmen, and the consultant inspection personnel assigned to
              the projects by CSXT.  Permissions  shall be obtained from CSXT to
              enter the right of way before beginning operations.

                                        5
<PAGE>

              All personnel shall receive safety  briefings by a CSXT Flagman or
              designated CSXT  representative  each day before beginning work on
              the  right  of way.  Additional  briefings  may be  required  when
              conditions  and/or work sites are  changed.  Requests  for flagmen
              deployments  and  train  orders  shall  be  submitted  to the lead
              flagman or the designated CSXT  representative by 3:00 PM each day
              for the following workday.

       3.     The owners of the facilities shall have  construction  managers in
              responsible  charge  on  site  at  all  times  and  shall  provide
              production  quantities  on a daily  basis to the  CSXT  designated
              representative or the consultant  inspection personnel assigned to
              the project.

       4.     Accurate  notes and records shall be maintained  during the course
              of the work to enable the preparation of complete "as-built plans"
              upon  completion of the  project(s).  The  "as-built  plans" shall
              accurately  depict and  describe  the  location of all  facilities
              installed on the right of way.  As-built  plans shall be submitted
              for approval as specified in the contract with CSXT.

       5.     Unless  otherwise  approved  or  directed,  all  plowing  shall be
              performed  with plow  cutting  edge  perpendicular  to the  ground
              surface.  Plow  lines  are  to be  backfilled  and  compacted,  as
              required, as conduit installation  progresses.  All plow areas are
              to be backfilled  before work is suspended for the day.  Follow up
              restoration work will be required  whenever  settlement or erosion
              is observed.

              In the event of equipment breakdowns,  severe weather, or railroad
              emergencies  that preclude  completing and closing  excavations or
              disallow complete removal of equipment or materials, the areas are
              to  be   surrounded   with  orange   construction   fence  to  the
              satisfaction  of the CSXT  representative.  Flashing  construction
              barricades  may be required if the sites are in or near walk ways,
              switches,  signal control cabinets, or services roads used by CSXT
              personnel during night time hours.

              Excavations  shall comply with OSHA  requirements  and be promptly
              backfilled  and  compacted  in  accordance  with the  drawings and
              specifications  approved  by the  CSXT  Chief  Engineer,  refer to
              Attachment No. 7.

       6.     Fouling of the track, ties and ballast will not be permitted.
              Approved ballast stone shall be available on the project at all
              times. Ballast contaminated or disturbed shall be replaced and/or
              reshaped immediately.

                                        6
<PAGE>

              All obstructions  located within 15 feet of the center of the near
              track or on or adjacent to the walk  areas,  switches,  and signal
              control  devices and cabinets are to be removed by the end of each
              workday.

              Conduit at the end of plow lines,  directional bores, and trenches
              shall be cut off and buried as the work  progresses.  In the event
              that it becomes  necessary  to leave  exposed  ends or sections of
              conduit due to  emergencies or inclement  weather,  they are to be
              surrounded  with  orange   construction   fences  until  they  are
              connected  or  buried.  Messages  are  to  be  sent  to  the  CSXT
              dispatcher advising of potential crew or operational hazards.

              Casings  and  directional  bore  holes  that have  failed  and are
              abandoned  shall be sealed to prevent them from becoming  conduits
              for drainage.  Excavations  associated with abandoned  casings and
              bores  are  to  be  backfilled  and  compacted  as  shown  in  the
              specifications.

              The telecom  owners are  responsible  for  clearing  and  grubbing
              vegetation  that conflicts with the  construction  and disposal of
              the debris off the right of way.

       7.     Cables and/or wires temporarily installed to monitor or guide
              directional boring operations shall be subject to the following:

              a) CSXT  permission  is  required  if they are to be  attached  to
              railroad  structures and the flagmen are to be kept advised of all
              installations.

              b)  Clearances  over  waterways  must be  maintained to allow free
              unobstructed passage of boat traffic.

              c) Wires and supports located on the ground must be clearly marked
              and located such that they do not conflict with railroad personnel
              and  operations.  Control wires are not to be installed in advance
              of beginning operations and work deferred.

              d) When directional bores are monitored by electronic devices that
              do not use wire, and the work crosses streets or highways; traffic
              control devices,  approved by the State DOT, are to be placed when
              personnel  are on the highway right of way and/or  interfere  with
              traffic.

              e) All wires and supports are to be removed from the site promptly
              after work is completed.

                                        7
<PAGE>

       8.     Areas  disturbed by construction  operations  shall be reshaped to
              drain, seeded,  mulched or surfaced with crushed stone as required
              to prevent  erosion and ensure CSXT  personnel  and  equipment can
              safely  use all areas at all  times.  Restoration  of right of way
              disturbed  by  construction   operations  shall  be  scheduled  to
              coincide  with the  installation  of conduit and hand  hole/splice
              boxes and other appurtenances.

              The owners of the  facilities  shall  comply  with all  applicable
              CSXT, Federal, State and local environmental laws and regulations.
              The owners  shall also  prevent  construction  material and debris
              from  entering  waterways,  wetlands,  and detention and retention
              ponds. Any material that inadvertently escapes during construction
              operations  shall be  recovered  and  properly  disposed  of at an
              acceptable site.  Erosion control  materials such as silt fencing,
              bale  checks and mulch  shall be  available  and  installed  where
              necessary to protect potentially environmentally sensitive areas.

              Existing riprap or other erosion control  structures  disturbed or
              damaged  during the course of the work shall be promptly  repaired
              to the satisfaction of CSXT.  Completed work shall be re-evaluated
              following storms or other  construction  activities to ensure that
              the right of way is maintained in a satisfactory manner during the
              course of the work.

       9.     The  right of way shall be  restored  to a  condition  equal to or
              better than the condition  prior to beginning  the project  before
              final  acceptance will be approved.  Conduit and cable reels,  and
              other  debris are to be removed  from the right of way as the work
              progresses.   Failure  to  remove  such   materials   and  perform
              restoration  promptly  may  result in a  suspension  of work order
              until satisfactory progress has been demonstrated.

       10.    Final  inspections  of the right of way condition and  restoration
              will  be  scheduled  at CSXT  convenience  prior  to  construction
              personnel and equipment leaving the project.  Punch lists shall be
              responded to prior to issuance of an acceptance  memorandum signed
              by the Division Engineer or his/her designated representative.

                                        8
<PAGE>

E.     COMPLIANCE WITH SPECIFICATIONS

       1.     All work performed and materials furnished shall be in reasonably
              close conformity with the provisions contained in the plans and
              specifications approved by CSXT for the project and the provisions
              contained in this document. In the event that materials or the
              finished work are not in reasonably close conformity with the
              plans and specifications, CSXT will determine if the work or
              materials shall be removed and replaced or otherwise corrected to
              the satisfaction of CSXT.

       2.     No  revisions  to existing  installations  will be required  under
              these  specifications.  When  necessary  to  install,  relocate or
              replace existing facilities, these specifications will govern.

       3.     These   specifications  will  become  effective  on  the  date  of
              signature  below and will  remain in effect  until  revised by the
              Office of Chief Engineer CSX Transportation.

                                      Approved: [SIG]
                                               --------------------------------
                                                      Chief Engineer

                                      Date: Mar. 16, 1999
                                           ------------------------------------

                                      Approved: [SIG]
                                               --------------------------------
                                                Chief Engineer Train Control

                                      Date: 3-18-19
                                           ------------------------------------

       Prepared by:  B.H. Ortgies, P.E., V.P.
                     Wilbur Smith Associates
                     Tallahassee, FL
                     Revised Dec. 28, 1998

                                        9
<PAGE>

                                                                ATTACHMENT NO. 1

            [LENGTH OF CASING FOR VARIOUS CROSSING ANGLES DIAGRAM]

<PAGE>

                                                                ATTACHMENT NO. 2

                                [FILL DIAGRAM]

<PAGE>

                                                                ATTACHMENT NO. 3

               MANUAL FOR RAILROAD ENGINEERING, SECTION 1..3..5..9

1..3..5..9 Controlled Blasting of Rock

The  contractor  shall make all  necessary  arrangements  satisfactorily  to the
engineer for controlled  blasting in the vicinity of the track and shall provide
all safeguards required by the railway.

Within the entire area of the contract, complete and continuous precaution shall
be taken by the contractor to prevent any damages to persons,  vehicles, trains,
power  or  communication   lines,   structures,   private   dwellings  or  other
installations by reason of concussion, vibration or flying material.

The contractor shall be familiar with and comply with all regulations  governing
the transportation,  storage,  handling and use of explosives at the location of
the work. He shall obtain such permits as are required.

The  contractor  shall take all  necessary  precautions  against  the effects of
induced  currents  caused by radio  transmitters  and  receivers,  power  lines,
transformers,  cables, radar beams or any other energy or wave force which might
result in premature firing of the blasting circuits.

All blasting shall be done with extreme care by experienced licensed powder men,
in accordance with procedures approved by the engineer in writing.

The  contractor  shall  submit,  in advance of drilling,  a drilling and loading
pattern for blasting to the  engineer.  All drill dust shall be blown out of the
holes and holes shall be protected with suitable plugs or covers.

Approved  blasting  signals  shall be used at all times.  All blasting  shall be
carried out under  strict  traffic  regulations.  Each blast shall be subject to
clearance by the  contractor  from the  engineer to avoid any  blasting  while a
train is nearby.

When necessary to protect  property or facilities,  all blasts shall be suitably
covered with blasting mats or other approved protective  material,  weighted and
secured in such a manner as to prevent  projection of debris.  The contractor is
fully  responsible  for the method used in blasting  rock and  carrying  out the
approved  procedures and for the prompt  removal of all debris  deposited on the
track.  Approval of the engineer  shall not relieve the contractor in any degree
whatsoever of full responsibility for damages caused by blasting operations.

<PAGE>

                                                                ----------------
                                                                ATTACHMENT NO. 4
                                                                ----------------

               [ROAD CROSSING SIGHT CLEARANCE DISTANCES DIAGRAM]

<PAGE>

                                                                ----------------
                                                                ATTACHMENT NO. 5
                                                                ----------------

               [ROAD CROSSING SIGHT CLEARANCE DISTANCES DIAGRAM]

<PAGE>

                                                                ATTACHMENT NO. 6

                               CSX TRANSPORTATION
                               FIBER OPTIC PROGRAM
                               SAFETY REQUIREMENTS

GENERAL

- -      All fiber optic workers must receive CSXT SAFETY AWARENESS training and
       have a verification card and/or hard hat sticker. CSXT Safety Rules and
       Contractor Policies will apply to fiber optic workers, where applicable
       to the specific work performed.

- -      All personnel must wear proper Personal Protection Equipment, which
       includes a minimum of a hard a hat, safety glasses, steel toed shoes,
       hearing protection, and orange vests with reflective stripes on or around
       road crossings. When working beyond 25 feet from the nearest rail of a
       main track, hard hats, safety glasses, and laced work boots will be
       required.

-      - All "FRA Bridge Worker  Safety" rules will apply to fiber optic workers
       performing bridge attachments, including proper fall protecting rules.

- -      All test holes or pits less than 15 feet from the centerline of main
       tracks, will be filled or covered prior to passing of trains. No open
       pits or holes will be left over night. All pits and trenches will be
       shored according to OSHA requirements.

- -      No dirt or debris will be allowed to foul the ballast section of the
       tracks.

-      - All  excavation  or plow  trenches  will be back  filled and  compacted
       immediately after the work is done.

-      - All public utilities, CSXT Engineering,  and the Railroad Train Control
       Office, will be notified prior to any construction.

- -     Job Briefings will be conducted each morning and throughout the day when
       conditions or job scope changes.

WORKING ON OR AROUND TRACKS

- -      All work in the FRA Red Zone (within 4 feet from outside rail on each
       side of the track) will be done only with a CSXT, FRA qualified flagman
       or watchman as specified by the local Engineering representative. All
       work beyond 4 feet from the outside rails and within 25 feet, must be
       done under the supervision of a CSXT qualified inspector or flagman.

- -     Certain types of work done beyond 25 feet from the outside of the rails,
       and with equipment that will not reach beyond this point, may be done
       without flagging protection or a watchman, IF APPROVED BY THE LOCAL
       ENGINEERING REPRESENTATIVE, AND PROTECTED BY A CONSTRUCTION FENCE, IF
       WORK IS STATIONARY (WILL NOT BE USED FOR CAT PLOWING).

- -      All work must be stopped while trains are passing within the work zone.

-      - All workers  will remain off the tracks.  If  necessary  to perform the
       work on track, protection will be provided as stated above.

ALL  VIOLATION  OF ANY CSXT  SAFETY  RULES OR  POLICY,  MAY RESULT IN REMOVAL OF
CONTRACTOR OR PERSONNEL FROM THE RIGHT OF WAY.

CSXT/LLG Rev. 09-02-98 Approved by: Manager Safety 09-09-98

<PAGE>

                                                                ----------------
                                                                ATTACHMENT NO. 7
                                                                ----------------

                     [COMPACTION SPECIFICATIONS DIAGRAM]
<PAGE>
                                                                       EXHIBIT F

                                       -1-

                        Association of American Railroads
                              Communication Manual

<TABLE>
<CAPTION>
1989                                                                                        Part 1-B-1
- -------------------------------------------------------------------------------------------------------
                 Recommended Practices for Communication Lines
                        Crossing the Tracks of Railroads
                     Revised 1988 (76 Pages) (DOC. 1-B-1A)

                                Table of Contents
                               -----------------
                                                                                            Paragraphs
                                                                                           ------------
<S>                                                                                   <C>
Section A -- Purpose................................................................         A-1 to A-2
Section B -- Definitions............................................................        B-1 to B-10
   Communication Lines..............................................................         B-1 to B-4
   Supply Lines.....................................................................         B-5 to B-7
   Voltage of a Circuit.............................................................                B-8
   Minor Tracks.....................................................................                B-9
   Major Tracks.....................................................................               B-10
Section C -- General................................................................         C-1 to C-8
   Permits and Notices..............................................................        C-1 and C-2
   Marking Poles....................................................................                C-3
   Fire Hazard......................................................................                C-4
   Protection for Moving Vehicles...................................................                C-5
   Inspection.......................................................................         C-6 to C-8

                          Part I -- Overhead Crossings
                            ----------------------------
Section D -- General................................................................         D-1 to D-8
   Relative Levels of Supply & Communication Wires..................................         D-1 to D-3
   Protection of Metals Against Corrosion...........................................                D-4
   Vertical Pull....................................................................                D-5
   Length of Crossing Span..........................................................         D-6 to D-8
Section E -- Clearances.............................................................         E-1 to E-7
   General..........................................................................                E-1
   Side Clearances from Rails.......................................................                E-2
   Vertical Clearance Above Rails for Fixed Supports................................        E-3 and E-4
   Vertical Clearances Between Wires Not on the Same
      Supporting Structures.........................................................                E-5
   Increased Clearances.............................................................                E-6
   Clearance of Conductor of a Communication Line
      From the Supports of Another Line.............................................                E-7
Section F -- Loading Assumptions....................................................         F-1 to F-3
Section G -- Poles..................................................................        G-1 to G-10
   Material.........................................................................                G-1
   Sizes............................................................................                G-2
   Gains............................................................................                G-3
   Setting..........................................................................         G-4 to G-6
   Pole Mounts......................................................................                G-7
   Spliced Poles....................................................................                G-8
   Stub Reinforced Poles............................................................       G-9 and G-10
Section H -- Crossarms and Brackets.................................................         H-1 to H-5
Section J -- Crossarm Braces........................................................        J-1 and J-2
Section K -- Pins...................................................................                K-1
Section L -- Insulators.............................................................        L-1 and L-2
Section M -- Tie Wires..............................................................                M-1
Section N -- Conductors.............................................................         N-1 to N-5
Section P -- Sags...................................................................                P-1
</TABLE>

<PAGE>

                                       -2-

                        Association of American Railroads
                              Communication Manual

<TABLE>
<CAPTION>
Part 1-B-1                                                                                         1989
- -------------------------------------------------------------------------------------------------------
                                                                                            Paragraphs
                                                                                           ------------
<S>                                                                                   <C>
Section Q -- Guys...................................................................        Q-2 to Q-22
   Material.........................................................................                Q-1
   Side Guys........................................................................        Q-2 and Q-3
   Head Guys........................................................................        Q-4 and Q-5
   Guying at Corners and Terminals..................................................         Q-6 to Q-8
   Omission of Guys................................................................         Q-9 to Q-11
   Guying in Special Cases..........................................................               Q-12
   Guy Leads........................................................................               Q-13
   Methods of Anchoring Guys........................................................               Q-14
   Guy Rods.........................................................................               Q-15
   Anchors..........................................................................               Q-16
   Method of Securing Guy Strand....................................................               Q-17
   Guards for Guys..................................................................               Q-18
   Pole Braces......................................................................               Q-19
Section R -- Suspension Strand......................................................         R-1 to R-8
   Material.........................................................................                R-1
   Sizes............................................................................        R-2 and R-3
   Attachment to Poles..............................................................         R-4 to R-7
   Sags.............................................................................                R-8
Section S -- Cable Attachments to Suspension Strands................................                S-1

                        Part II -- Underbridge Crossings
                        --------------------------------
Section T -- General................................................................         T-1 to T-4
   Avoidance of Attachments.........................................................                T-1
   Attachments......................................................................                T-2
   Clearance from Abutments.........................................................                T-3
   Clearance from Bridge Structure..................................................                T-4

                        Part III -- Underground Crossings
                       ---------------------------------
Section U -- General................................................................        U-1 to U-14
   Arrangement for Work.............................................................                U-1
   Location.........................................................................                U-2
   Side Clearance from Rail.........................................................                U-3
   Clearance Below Base of Rail.....................................................        U-4 and U-5
   Arrangement of Conduit System....................................................                U-6
   Protection of Ducts..............................................................        U-7 and U-8
   Excavation.......................................................................                U-9
   Shoring..........................................................................               U-10
   Grading and Drainage.............................................................               U-11
   Backfilling......................................................................               U-12
   Removing Surplus Material........................................................               U-13
   Concrete.........................................................................               U-14
</TABLE>

<PAGE>

                                       -3-

                        Association of American Railroads
                              Communication Manual
1989                                                                  Part 1-B-1
- ------------------------------------------------------------------------------
                                  A -- Purpose
                                   ------------
A-1     These  recommended  practices are for  construction  and  maintenance of
        communication   lines  crossing  the  tracks  and  associated   parallel
        communication  lines of steam and electrified  railroads,  except street
        railways.

A-2     Where any  requirements of this  specification  do not meet municipal or
        state requirements, such municipal or state requirements shall govern.

                                B -- Definitions
                                 ----------------

B-1     Communication Lines: Communication lines as used in this manual part
        mean telegraph, telephone and other communication wires and cables and
        their supporting or containing structures which are located outside of
        buildings and are used for public or private communication service and
        which operate at not exceeding 400 volts to ground or 750 volts
        between any two points of the circuit, and the transmitted power of
        which does not exceed 150 watts. For such communication wires, when
        operating at less than 150 volts between wires or to ground, no limit
        is placed on the capacity of the system.

B-2     Interlocking,  automatic  signal and other similar wires (not  including
        electric  light and supply  wires),  which  operate at not exceeding the
        voltage and power requirements of communication wires, should be classed
        as communication wires.

B-3     Communication circuits used exclusively in the operation of supply lines
        should,  in general,  be  considered  as supply  circuits of the highest
        voltage  to  which  they are  exposed,  and  should  be  constructed  in
        accordance with Manual Part 7-1 (Recommended  Practices for Crossings of
        Electrical  Supply Lines and  Facilities of  Railroads),  but in no case
        need the  communication  conductors  meet the  requirements  for  supply
        conductors in excess of 8,700 volts between conductors.

B-4     Where,  however,  such  communication  circuits  are  below  the  supply
        conductors  in the  operation  of which  they are  used,  at all  points
        throughout  their length or throughout the section in which the railroad
        crossing occurs,  provided such section of the communication circuits is
        isolated  from the  remainder  of the  system by  transformers  or other
        means,
<PAGE>
                                       -4-
                        Association of American Railroads
                              Communication Manual
Part 1-B-1                                                                 1989
- ------------------------------------------------------------------------------

     they may be considered as ordinary communication circuits and so
     constructed, if either of the following conditions obtain:
     (a)    Such communication circuits occupy a position below all other
            conductors or equipment or other lines at crossings,  conflicts,  or
            on commonly used poles  throughout the section to which reference is
            made.

     (b)    Such  communication  circuits are  protected  by fuseless  lightning
            arresters,  drainage coils, or other suitable devices to prevent the
            communication  circuit voltage form normally  exceeding 400 volts to
            ground.

B-5  Supply  Lines:  Electrical  supply  lines mean those  conductors  and their
     necessary  supporting or containing  structures  which are located entirely
     outside of buildings and are used for  transmitting  a supply of electrical
     energy.

B-6  Except as specified in Paragraphs  B-4 and B-7,  communication  and railway
     signaling  wires  exceeding the voltage or power  limitations  specified in
     Paragraph  B-1, are supply lines within the meaning of this manual part and
     should be so constructed.

B-7  Circuits  used for  supplying  power solely to apparatus  forming part of a
     communication system may be run either in open wire or cable as follows:
     (a)    Where run in open wire, such circuits should have the strength
            of construction, clearances, insulation, etc., prescribed for
            communication or supply circuits of the voltage concerned.

     (b)    Where run in effectively  grounded  continuous metal sheath cable or
            in cable which is attached to effectively grounded suspension strand
            by means of metal rings or spirally wound lashing wire, the strength
            of construction,  clearances,  locations,  etc.,  prescribed in this
            manual part for communication cables should apply.

B-8  Voltage of a  Circuit:  Voltage of a circuit  means the  highest  effective
     voltage between any two conductors of the circuit concerned, except that in
     a  grounded  multi-wire  circuit  of 750  volts  or  less  between  any two
     conductors,  it means the highest effective voltage between any wire of the
     circuit and that point or conductor of the circuit that is grounded.

<PAGE>
                                       -5-
                        Association of American Railroads
                              Communication Manual
1989                                                                 Part 1-B-1
-------------------------------------------------------------------------------

B-9  Minor Tracks: Minor tracks mean railroad tracks included in the
     following:
     (a) Spur tracks less than 2,000 ft. long and not exceeding two tracks
         in the same crossing span.

     (b) Narrow-gauge  or other tracks on which  standard  rolling stock cannot,
         for physical reasons, be operated.

     (c) Tracks used only temporarily for construction or similar purposes for a
         period not exceeding one year.

     (d) Tracks not operated as a public  utility,  such as industrial  railways
         used in logging, mining, etc.

     (e) By  agreement  between the parties at  interest,  other  similar  minor
         tracks than those listed under (a), (b), (c) and (d) above.

B-10 Major Tracks: Major tracks mean any tracks not included under the
     definition of minor tracks.

                                C-General

C-1  Permits and Notices: A party planning to erect wires across the tracks of a
     railroad  shall  give  to the  Superintendent  of  Communication  or  other
     designated  officer  of the  railroad,  written  notice at least 30 days in
     advance of starting  construction.  Such notice shall  include  information
     regarding  the location and general plan of the  crossing,  clearances  and
     other data  indicated on Typical  Communication  Line  Crossing Data Sheet,
     Appendix L, and on Figures  1B1-1,  1B1-3,  1B1-4 and 1B1-5,  and any other
     pertinent  information  in  sufficient  detail so that it can be determined
     whether   or  not  the   proposed   construction   will   conform  to  this
     specification.

C-2  In cases where 30 days' notice is impracticable  because of service demands
     or emergency,  the parties  concerned should cooperate to avoid unnecessary
     delay in the construction of the crossing.

C-3  Marking Poles: Crossing poles should be plainly marked by means of stencils
     or metal characters showing the name,  initials or trade mark of the owning
     company.  Where  lines are located on  railroad  right-of-way  for at least
     three poles adjacent to the crossing and it is the standard practice of the
     owning  company to so mark at least every fifth pole in the line, the above
     requirement should be considered as having been met.

<PAGE>

                                       -6-
                        Association of American Railroads
                              Communication Manual

Part 1-B-1                                                                 1989
- ------------------------------------------------------------------------------

C-4  Fire Hazard: Crossing poles or other supporting structures shall be located
     as far distant as  practicable  from  inflammable  structures and the space
     around the poles or other supporting  structures kept free from inflammable
     material.

C-5  Protection from Moving Vehicles: Supporting structures adjacent to traveled
     highways shall be located with a view to reducing,  as far as  practicable,
     the danger of being struck by moving vehicles. Structures which are exposed
     to abrasion by moving  vehicles or to other damage which would affect their
     strength materially, shall be protected by guards.

C-6  Inspection:  The  construction  shall be subject to the  inspection  of the
     railroad  company  and shall  comply with the  requirements  of this manual
     part.  Defective  material  shall be rejected and replaced with  acceptable
     material.

C-7  All parts of the  supporting  structures  of overhead  crossings  should be
     inspected  at  such   intervals  as  are   necessary  to  assure   adequate
     maintenance.  All  defective  parts  shall be  promptly  restored to a safe
     condition  and, with the  exception of wood poles,  should be replaced when
     they have  deteriorated  to 50% of their required  initial  strength.  Wood
     poles should be replaced when they have  deteriorated  to two-thirds  their
     required  initial  strength.  (The  ground  line  circumference  of various
     classes  and  species  of  poles  whose  strengths  have   deteriorated  to
     two-thirds  their  strength  when  new  is  given  in  Appendix  G.) In the
     replacement  inspection of treated  poles where decay is usually  internal,
     the  extent of the decay  shall be  determined  and  evaluated  in terms of
     external decay so that the tables in Appendix G may be applied.

C-B Underground crossings should be properly maintained.

                           Part I - Overhead Crossings
                                    D-General

D-1  Relative Levels of Supply and Communication  Wires: Every reasonable effort
     should be made in the  construction  or  reconstruction  of a  crossing  to
     arrange or  rearrange  the lines so that supply wires should be at a higher
     level  than the  communication  wires.  This  does not apply in the case of
     trolley  contact  wires  or  their  associated  feeders,   which  must,  of
     necessity, occupy a position below all other wires at the crossing.
<PAGE>

                                       -7-
                        Association of American Railroads
                              Communication Manual

1989                                                                  Part 1-B-1

D-2     Where  communication  lines  cross over  tracks and a supply line in the
        same span,  or where supply  wires are carried in the lower  position on
        the same crossing poles as the communication  wires, the construction of
        the  crossing  should be as follows,  depending  upon the voltage of the
        supply circuits:

        (a)      Where the  supply  line is open wire and the  voltage  does not
                 exceed 750 volts ac or dc to ground, constructions should be in
                 accordance with this manual part.

        (b)      Where  supply  circuits  of any  voltage  are  carried in cable
                 having  effectively  grounded  continuous  metal  sheath  or on
                 effectively grounded suspension strand, the construction should
                 be in accordance with this manual part.

        (c)      Where the supply line is open wire or is in cable not meeting
                 the requirements of (b) above and the voltage exceeds 750
                 volts ac to ground but does not exceed 5,000 volts between
                 conductors (2,900 volts to neutral or ground), the
                 construction should be in accordance with this manual part,
                 except that the communication conductors should be not smaller
                 than No. 6 AWG (0.162 in. in diameter) copper or No. 6 Stl WG
                 (0.192 in. in diameter) steel, or wires the equivalent
                 thereof.

        (d)      Where  the  supply  circuits  involved  are in excess of the ac
                 voltage  limitations in (c) above, or in excess of 750 volts dc
                 to ground, the construction  should not be made except with the
                 approval of all parties concerned.

D-3     Supply wires or cables carried on the poles supporting communication
        circuits crossing over railroad tracks should be constructed in
        accordance with the Manual Part 7-1 (Recommended Practices for
        Crossings of Electrical Supply Lines and Facilities of Railroads) For
        construction of signal supply circuits not in excess of 550 volts and
        3,200 watts, located below communication wires Manual Part l-A-6
        (Recommended Practices for Construction of Railroad communication Pole
        Lines).

D-4     Protection of Metals Against Corrosion: All pole line hardware should be
        of  material  that will not  corrode  excessively  under the  prevailing
        conditions.  Where  galvanizing is used, it should meet the requirements
        of the  specifications  for  galvanizing  of the  American  Society  for
        Testing & Materials.

<PAGE>

                                       -8-
                        Association of American Railroads
                              Communication Manual

Part 1-B-1                                                                  1989
- ------------------------------------------------------------------------------
D-5     Vertical Pull: The vertical distance from the top crossarm of a crossing
        pole to a straight line connecting the top crossarm of the next adjacent
        poles on either side of this  crossing pole should not exceed the values
        given in Table D-l.

                                    Table D-l
                            Recommended Vertical Pull

<TABLE>
<CAPTION>
Average Length of Two                                                          Allowable Vertical
Adjacent Spans in Feet                                                         Distance in Feet
- ----------------------                                                         ----------------
<S>                                                                                 <C>
         Less than 100                                                                8
         101 to 130                                                                  10
         131 to 150                                                                  12
         Over 150                                                                    14
</TABLE>

D-6     Length of Crossing Span: The crossing span should, where practicable,
        not exceed 100 ft. in the heavy loading district, 125 ft. in the
        medium loading district and 150 ft. in the light loading district. Where
        practicable, the adjacent spans should not exceed the length of the
        crossing span by more than 50%.

D-7     Where  practicable,  the supports  for the  crossing and next  adjoining
        spans should be located in a straight line.

D-8     The  crossing and each  adjoining  span should be kept free from decayed
        trees and as far as practicable from overhanging trees, which might fall
        into the line.

                                  E-Clearances

E-l     General:  The  conditions  under which all  clearances are specified are
        15.5C(60F)  and no wind.  Clearances  should  be  measured  between  the
        nearest parts of the objects concerned.  The clearances required by this
        section should be maintained at not less than the specified values.

E-2     Side Clearances from Rails: Poles or towers supporting the crossing
        span should, where practicable, be so located as to provide a minimum
        horizontal clearance of 17 ft. from the nearest track rail and a minimum
        horizontal clearance of 8 ft. between the nearest track rail and any
        crossarm, guy or other attachment. Where it is impracticable or
        undesirable to provide these clearances, they may be reduced if the
        approval of the railroad concerned is obtained. Where necessary to
        provide safe operating conditions, which require uninterrupted view
        along the tracks for signals, signs, etc., the parties concerned should
        cooperate to provide greater clearances than those specified above.

<PAGE>

                                       -9-

                        Association of American Railroads
                              Communication Manual

1989                                                                  Part 1-B-1
- ------------------------------------------------------------------------------
E-3     Vertical  Clearance  Above  Rails  for  Fixed  Supports:   The  vertical
        clearance  between  the lowest  wire,  guy, or cable and the top of rail
        should be not less than given in Table E-l.

                                    Table E-l
                   Recommended Vertical Clearance Above Rails

<TABLE>
<CAPTION>
                                                                       Vertical Clearance
                                                                               in Feet
                 <S>                                                          <C>
                 For Wires...............                                      27 (a) (b)
                 For guys, or cables carried
                      on suspension strands.                                   25 (b)
</TABLE>

        (a)      Where the wires are paralleled on the same street or highway by
                 a trolley  contact  conductor at a lower level,  this clearance
                 may be reduced to 25 ft.

        (b)      Where  agreed  to  by  the  railroad   concerned,   in  special
                 situations,  less  clearance may be provided if safety will not
                 be decreased thereby.

E-4     The clearances specified in Paragraph E-3 are applicable for crossing
        span lengths up to 175 ft. in the heavy loading district, 250 ft. in the
        medium loading district, and 350 ft. in the light loading district.
        Where crossing span lengths greater than these are involved, the
        clearances should be increased in accordance with Paragraph E-6 (a).

E-5     Vertical Clearances Between Wires Not on the Same Supporting Structures:
        The vertical  clearances  between  conductors  of the crossing  span and
        conductors  of other lines  should be not less than the values  shown in
        Table E-2. These clearances apply under the following conditions:

        (a)      Where the  conductors  at the upper  level have fixed  supports
                 (pin or strain type  insulators) or are supported on suspension
                 type  insulators in a suspended  position at both supports,  or
                 are  arranged  so that they are  restrained  from  displacement
                 toward the crossing.

        (b)      Where the length of the span of the conductors in the upper
                 position is not greater than 175 ft. in the heavy loading
                 district, 250 ft. in the medium loading district, or 350 ft. in
                 the light loading district.

<PAGE>

                                      -10-
                        Association of American Railroads
                              Communication Manual

Part 1-B-1                                                                  1989
- ------------------------------------------------------------------------------
                               Notes for Table E-2

        (a)      These clearances apply also to inverted levels.

        (b)      Except where neutral conductors of primary supply circuits are
                 concerned, a clearance of 2 ft. is permitted where the supply
                 conductor is above the communication conductor, provided the
                 crossing is not within 6 ft. of any pole concerned in the
                 crossing and the voltage to ground of the supply conductor does
                 not exceed 300 volts.

        (c)      This clearance should be increased to at least 6 ft. above
                 trolley contact conductors of more than 750 volts to ground.
                 This increased clearance should also be provided over
                 trolley contact conductors of lower voltage, unless the
                 crossover conductors are beyond reach of a trolley pole leaving
                 the trolley contact conductor, or are suitably protected
                 against damage from trolley poles leaving the trolley contact
                 conductor.

        (d)      A  conductor  which  is  effectively  grounded  throughout  its
                 length,   such  as  a  multi-grounded   neutral  wire,  and  is
                 associated  with  a  circuit  of 750 to  15,000  volts  between
                 conductors,  may have the clearances  specified for open supply
                 wires of 0 to 750 volts between conductors.

        (e)      This clearance should be increased to 6 ft. where the supply
                 wires cross over the communication line within 6 ft.
                 horizontally of a communication pole.

        (f)      This clearance should be increased to 4 ft. where communication
                 cables cross over open supply service wires.

        (g)      Where the required clearance is 2 ft., and where conditions
                 are such that the sag in the upper conductor would increase
                 more than 1.5 ft. at the crossing point, under full load
                 conditions, the 2 ft. clearance should be increased by the
                 amount of sag increase less 1.5 ft.

        (h)      Multi-grounded wye circuits not exceeding 8,700 volts to
                 ground may have a 4 ft. clearance if the lowest supply wire
                 at the crossing is not lower than a straight line joining the
                 points of support of the highest communication conductor,
                 provided the crossing does not occur within 6 ft. horizontally
                 of a communication pole.

<PAGE>

                                      -11-
                        Association of American Railroads
                              Communication Manual

1989                                                                 Part 1-B-1
- ------------------------------------------------------------------------------

                                    TABLE E-2
             Recommended Minimum Vertical Clearance In Feet Between
                        Wires Not on the Same Structures

     (All  voltages are between  wires,  except where  otherwise  stated,or  for
trolley contact wires where voltages are to ground.)

<TABLE>
<CAPTION>

                                     Nature of Wires at Higher Level (a)
                                     Open supply wires,
                                     0-750 volts; supply                                     Guys,
                    Communication    cables, all voltages           Open supply            span wires,
Nature of           wires, cables    having effectively             wires and               lightning
wires crossed       and suspension   grounded metal sheath          service drops           protection
Over (a)            strand           or suspension strand               (d)                   wires
                                                                    750 to   8,700 to
                                     Line wires   Service         8,700     50,000
                                     and cables    drops          Volts     Volts

<S>                  <C>            <C>            <C>            <C>        <C>            <C>
Communication
wires, cables and
suspension strand    2(g)            4(b) (g)      2(g)            4(e)      6(h)               2

Trolley contact      4(c)           -----          -----          ------    ------             4(c)
conductors

Guys and span wires,
lightning protection
wires, supply service
drops of 0 to 750
volts                2(f)             2            2              4            4               2(j)

</TABLE>

         (j)      Completely  insulated  sections of guys attached to supporting
                  structures  having no  conductor  of more than 8,700 volts may
                  have less than this clearance from each other.

E-6      Increased Clearances: Conductors in the upper position at the
         crossing, except guys or cables supported by suspension strand,
         should have greater clearances than given in Paragraphs E-3 and
         E-5 under the following conditions. The increases in (a), (b)
         and (c) below are cumulative. An example illustrating the
         method of determining the clearance between power wires and
         communication wires where an open wire communication line
         crosses over railroad tracks and under an open wire power line
         in the same span is given in Appendix K.

<PAGE>

                                      -12-
                        Association of American Railroads
                              Communication Manual
Part 1-B-1                                                                 1989
- ------------------------------------------------------------------------------
         (a)      For crossing spans longer than specified in Paragraphs E-4 and
                  E-5 (b), clearances should be increased as follows:

                  (1) The  clearances  given in  Tables  E-l and E-2  should  be
                      increased  by the  following  amounts  for each 10 ft.  by
                      which  the  crossing   span  length   exceeds  the  limits
                      specified in Paragraphs E-4 and E-5(b):

                                    Table E-3
                   Recommended Clearance Increase Increments
<TABLE>
<CAPTION>
                                    Amount of Increase per 10 ft.
       Loading District        Large Conductors          Small Conductors*
<S>                                 <C>                       <C>
Heavy and Medium                    0.15 ft.                    0.30 ft.
Light                               0.10 ft.                    0.15 ft.
</TABLE>

* A small  conductor  is a  conductor  having an overall  diameter  of  metallic
material equal to or less than the following values:
<TABLE>
<CAPTION>

                              Outside Diameter of Conductor (Inch)
             Material             Solid            Stranded
<S>                              <C>              <C>
All copper                        0.160             0.250
Other than all copper             0.250             0.275
</TABLE>

         (2)      If the crossing point is located elsewhere than at mid-span of
                  the conductors in the upper position,  the required  clearance
                  may be obtained by multiplying the clearance determined in (1)
                  above by the appropriate  reduction factors specified in Table
                  E-4.  The  factors to be used in any case will depend upon the
                  basic clearance required by Tables E-l and E-2, and in no case
                  should  the  clearance,  after the  reduction  factor has been
                  applied, be less than such basic clearance.  In applying these
                  factors,  the  point of  crossing  in the  case of a  railroad
                  crossing is the track rail which is  farthest  from the nearer
                  support of the crossing span. In other  situations,  it is the
                  location  under the  conductors of any  topographical  feature
                  which is the determinant of the clearance.

<PAGE>

                                      -13-
                        Association of American Railroads
                              Communication Manual
 1989                                                              Part 1-B-1
- ------------------------------------------------------------------------------
                                    Table E-4
                     Recommended Clearance Reduction Factors
<TABLE>
<CAPTION>
Distance from Nearer Support                                      Basic Clearance
of Crossing Span to Point of
Crossing, in Percent of
Crossing                                               4 Ft.      6 Ft.     27 Ft.
                        Span Length                         Reduction Factor
<S>                                                   <C>       <C>        <C>
                             5                         0.35       0.47      0.85

                            10                         0.47       0.58      0.88

                            15                         0.60       0.68      0.91

                            20                         0.71       0.78      0.94

                            25                         0.82       0.85      0.96

                            30                         0.90       0.92      0.98

                            35                         0.96       0.98      0.99

                          40-50                        1.00       1.00      1.00
</TABLE>
        Interpolate for intermediate values

         (b)      For voltages in excess of 50,000 volts between wires,
                  the vertical clearances given in Table E-2 shou1d
                  be increased at the rate of 1/2-in. for each 1,000
                  volts of excess.

         (c)      Where the  conductors  of the line in the upper  position at a
                  crossing over a communication line are supported by suspension
                  type insulators, the clearances should be increased by such an
                  amount  that  the  values  specified  in  Table  E-2  will  be
                  maintained  in case of a broken  conductor in either  adjacent
                  span, provided such conductor is supported as follows:

                  (1)    At one  support  by  suspension  type  insulators  in a
                         suspended   position  and  at  the  other   support  by
                         insulators not free to swing (including semistrain-type
                         insulators).

                  (2)    At one support by strain insulators, and
                         at the other support by semistrain-type
                         insulators.

E-7      Clearance of  Conductors of a  Communication  Line from the Supports of
         Another Line: Where conductors of a communication line are carried near
         a supporting structure of any other line and not attached thereto, they
         should have a clearance  from any part of such  structure not less than
         the larger value required by either (a) or (b) below:
<PAGE>
                                      -14-
                        Association of American Railroads
                              Communication Manual
Part 1-B-1                                                                  1989
- ------------------------------------------------------------------------------

         (a)      3 ft., if practicable.

         (b)      6 in. plus 1 in. for each 2 ft. of the distance from the
                  supporting structure of the line passed to the nearest
                  supporting structure of the communication line.

                              F-Loading Assumptions
F-1      Three degrees of severity are recognized for the loading due to weather
         conditions and are designated, respectively, as heavy, medium and light
         loading.  The  classification  of the United States on the basis of the
         districts  in which these  loadings  should be  considered  to apply is
         shown on the loading map,  Appendix A.  Crossing  wires and  supporting
         structures  should be  designed  for heavy,  medium and light  loading,
         dependent upon the district in which they are located.

F-2      In those states in which  detailed  local  districting of loading areas
         has been prescribed by state administrative authority, this districting
         should be  employed  in lieu of that  given in  Appendix  A. Where such
         districting has not been prescribed,  detailed districting or different
         loading  assumptions  from  those  given in this  specification  may be
         employed  where  agreed to by all  parties  concerned,  including  such
         administrative authority as may have jurisdiction.

F-3      The  specific  transverse  and  longitudinal  loadings  which should be
         assumed in  determining  the size of poles or the  strength  of guys in
         each of the loading districts are indicated below:

         (a)      Transverse Loading (Poles and Side Guys):

                  (1)      Heavy Loading: A horizontal wind pressure at right
                           angles to the direction of the line of 4 lb./sq. ft.
                           upon the projected area of the cylindrical surfaces
                           of all supported conductors and cables, together with
                           their supporting suspension strand when covered with
                           a layer of ice 1/2-in. in radial thickness and on
                           surfaces of poles without ice covering.

                           For supporting  structures,  other than unguyed poles
                           at crossings over major tracks, carrying more than 10
                           wires,  not including  cables supported by suspension
                           strand,  the  transverse  load due to the open  wires
                           should  be  calculated  on  two-thirds  of the  total
                           number of such wires, with a minimum of 10 wires.

<PAGE>

                                      -15-
                        Association of American Railroads
                              Communication Manual

1989                                                                  Part 1-B-1
- ------------------------------------------------------------------------------

                  (2)      Medium Loading: A horizontal wind pressure at right
                           angles to the direction of the line of 4 lb./sq. ft.
                           foot of the projected area of cylindrical surfaces of
                           all supported conductors and cables, together with
                           their supporting suspension strand, when covered with
                           a layer of ice 1/4-in, in radial thickness and on the
                           surfaces of the poles without ice covering.

                           For supporting  structures,  other than unguyed poles
                           at crossings over major tracks, carrying more than 10
                           wires,  not including  cables supported by suspension
                           strand,  the transverse  load should be calculated on
                           2/3 of the total number of such wires, with a minimum
                           of 10 wires.

                  (3)      Light Loading: A horizontal wind pressure at right
                           angles to the direction of the line of 9 lb./sq. ft.
                           upon the projected area of cylindrical surfaces of
                           all supported conductors and cables, together with
                           their supporting suspension strand, and poles,
                           without ice covering.

         (b)      Longitudinal  Loading (Poles and Head Guys):  The longitudinal
                  loading  should be assumed equal to a pull in the direction of
                  the crossing of all open wire conductors  supported,  the pull
                  of each conductor being taken as 50% of its ultimate  strength
                  in the heavy loading  district,  33-1/3% in the medium loading
                  district, and 22-1/4% in the light loading district.

                                     G-Poles
G-1      Material: Wood poles should be of suitable and selected timber free
         from observable defects that would decrease their strength or
         durability. Poles of Northern White Cedar, Western Red Cedar, Chestnut,
         Southern Pine, Lodgepole Pine and Douglas Fir shall meet the
         requirements of the American National Standards Institute for poles of
         these species. For convenience, tables giving the dimensions of various
         classes and lengths of these species of poles, ANSI Standard
         05.1-1987(Specifications and Dimensions for Wood Poles) are given in
         Appendix J. In the absence of specifications covering other species of
         poles, they should be considered on the basis of the ANSI standard for
         the species of pole having the nearest equivalent ultimate fiber
         stress. A table giving the ultimate fiber stresses of the species of
         poles in more common use in communication plant is included in Appendix
         H. The use of treated poles is recommended where practicable, but is
         not required, except in the case of timbers subject to rapid decay.

<PAGE>

                                      -16-
                        Association of American Railroads
                              Communication Manual
Part 1-B-1                                                                  1989
- ------------------------------------------------------------------------------

G-2      Sizes:  Poles should be of a size not less than the class  specified in
         Table G-l for the  corresponding  number of wires carried.  If guys are
         omitted,  poles must be of sufficient strength to meet the requirements
         specified in Paragraph Q-9.

<TABLE>
<CAPTION>
                                    Table G-1
                                    ---------
                 Recommended Minimum Class (ANSI Classification)
                 -----------------------------------------------
                 10 Wires     11 to 20     21 to 40     Over 40
                 or less        Wires        Wires       Wires
<S>              <C>          <C>          <C>          <C>
Heavy and
Medium
Loading
Districts           7           6             5            4

Light
Loading
District            7           6             6            5
</TABLE>

G-3      Gains: Gains should not be cut to a depth of more than 1/2-in.

G-4      Setting:  Table G-2  specifies the minimum depth of setting for unguyed
         poles in average soil and in rock.

G-5      Where crossing  poles are head and side guyed,  the depth of setting of
         poles normally  employed by a constructing  company in the construction
         of its lines may, in general,  be used.  However, in no case should the
         depth of setting of a pole at a crossing  be more than 1 ft.  less than
         the depths  given in Table G-2,  where the pole is set in earth or more
         than 1/2-ft. less when set in rock.

G-6      Where soil  conditions  are such that the above  depths of setting will
         not  develop  the  strength  of the pole,  the pole should be set to an
         additional depth or other means used to properly secure the pole.

G-7      Pole  Mounts:  Where a crossing  pole is to be set on surface  rock,  a
         concrete bridge abutment, or other masonry or stone structure, approved
         pole mounts may be used.

G-8      Spliced Poles: Spliced poles should not be used to support the crossing
         span.

G-9      Stub Reinforced Poles: Stub reinforced poles should not be used at
         crossings over major tracks. At crossings over minor tracks, the use
         of stub reinforcements is permitted, provided:

<PAGE>

                                      -17-
                        Association of American Railroads
                              Communication Manual
1989                                                                 Part 1-B-1
- ------------------------------------------------------------------------------

                                    Table G-2

             Recommended Minimum Depth of Setting for Unguyed Poles

<TABLE>
<CAPTION>
  Length of         Depth in Feet in Average Soil for Different Classes of Poles          Depth in Feet
     Pole                                                                                    in Rock
   in Feet         Class 1 And 2    Class 3 And 4       Class 5 And 6       Class 7        All Classes
<S>                   <C>              <C>                 <C>             <C>               <C>
      16              -----            -----                4                3-3/4             3

      18              -----            -----                4-1/4            4                 3-1/4

      20              4-3/4            4-1/2                4-1/4            4                 3-1/4

      22              5                4-3/4                4-1/2            4-1/4             3-1/2

      25              5-1/2            5-1/4                4-3/4            4-1/2             3-3/4

      27              5-3/4            5-1/2                5                4-3/4             4

      30              6                5-3/4                5-1/4            5                 4-1/4

      35              6-1/2            6                    5-1/2            5-1/4             4-l/2

      40              6-3/4            6-1/4                5-3/4            5-1/2             4-3/4

      45              7                6-1/2                6                5-3/4             5

      50              7-1/4            6-3/4                6-1/4            6                 5-1/4

      55              7-1/2            7                    6-1/2            -----             5-1/2

      60              7-3/4            7-1/4                6-3/4            -----             5-3/4

      65              8                7-1/2                7                -----             6

      70              8-1/2            8                    7-1/2            -----             6

      75              9                8-1/2                8                -----             6

      80              9-l/2            9                    8-1/2            -----             -----

      85              10               9-1/2                9                -----             -----

      90              10-1/2           10                   9-1/2            -----             -----

</TABLE>

<PAGE>

                                      -18-
                        Association of American Railroads
                              Communication Manual
Part 1-B-1                                                                  1989
- ------------------------------------------------------------------------------

         (a)    The pole above the ground  line is in good  condition  and is of
                sufficient size to develop its required strength.

         (b)    The stub  should have a ground  line  circumference  at least as
                great as would be required for a new pole in the same location.

         (c)    The stub should be set to a depth at least as great as that
                required for the pole being stubbed. (See Paragraph G-4.)

         (d)    The stub should be  attached to the pole by a method  which will
                develop at all times the required strength of the pole.

G-10     Stubs  should,  in  general,  be set at the side of the pole in a plane
         perpendicular  to the direction of the line. Where the direction of the
         line changes at the pole being stub  reinforced,  the stub should be at
         the side of the pole in a plane  bisecting  the angle of the corner and
         in the  direction of the corner pull.  Where head guys are omitted,  as
         permitted in Paragraph Q-9, the stub should be set on the track side of
         the pole in line with the crossing span.

                            H-Crossarms and Brackets

H-1      Wood crossarms  supporting the crossing span should be of fir,  treated
         yellow  pine or other  suitable  timber.  They  should  have a  nominal
         cross-section of not less than the values given in Table H-1.

                                    Table H-1
                    Recommended Dimensions of Wood Crossarms

<TABLE>
<CAPTION>
Number    Nominal  Length       Nominal Cross-section
of Wires  (Feet)  (Inches)             (Inches)

<S>       <C>       <C>        <C>
 2          1        4-1/2      2-5/16 by 3-5/16
 4          3        4-1/2      2-5/16 by 3-5/16
 6          6        0          2-3/4  by 3-3/4
10          8        6          2-3/4  by 3-3/4
10         10        0              3  by 4
12*        10        0          3-1/4  by 4-1/4
16**       10        0          3-1/4  by 4-1/4
</TABLE>

*        Where crossarms are bored for 1/2-in. steel pins, 3-in. by 4-1/4 in.
         crossarms may be used.

** Permitted in medium and light loading districts only.

<PAGE>
                                      -19-
                        Association of American Railroads
                              Communication Manual
1989                                                                  Part 1-B-1
- ------------------------------------------------------------------------------

H-2      Galvanized  or painted iron or steel  crossarms  of strengths  equal to
         those of the wood crossarms specified in Table H-1 may be used.

H-3      Double  crossarms  should be provided  on  crossing  poles and shall be
         attached  to the pole by  means  of a  5/8-in.  crossarm  bolt.  Double
         crossarms  longer than two-pin  should be equipped  with double  arming
         bolts at a point near each end of the crossarms.

H-4      Wood pole brackets may only be used at crossings  over minor tracks and
         should be in  duplicate  so as to afford two points of support for each
         conductor.

H-5      Single metal  brackets,  drive hooks or fixtures may be used to support
         distributing wire at railroad  crossings  provided such bracket,  drive
         hook or fixture and the  attachment  of the wire  thereto is such as to
         withstand the ultimate breaking strength of the wire.

                                J-Crossarm Braces

J-1      Crossarms and buckarms,  except two-pin crossarms,  should be so braced
         as to safely  support the loads to which they may be  subjected in use,
         including lineman working on them. This strength may be obtained by the
         use of one pair of crossarm braces. Steel crossarm braces should have a
         cross  section of not less than  1/8-in.  by 1-1/8 in. and a length not
         less than 20 in.

J-2      The braces should be attached to the pole by a drive screw not less
         than 1/2-in. by 3 in. and to the crossarm by bolts 3/8-in. in
         diameter.

                                     K-Pins

K-1      Insulator  pins should have strength  sufficient to withstand the loads
         to  which  they may be  subjected.  Steel or iron  pins  should  have a
         diameter  of shank not less than 1/2 in.  Wood pins  shall be sound and
         straight grained with a diameter of shank not less than 1-1/4 in.

                                  L-Insulators

L-1      Each  insulator  should be of such pattern,  design and material  that,
         when mounted on its pin, it will withstand,  without injury and without
         being pulled off the pin, the ultimate  strength of the conductor which
         it supports.

L-2      Each conductor (not including paired wire) unless dead-ended, should be
         tied to two  supporting  insulators  in such a manner  that  they  will
         securely  hold  the  conductor  to its  supporting  insulators  at each
         crossing pole.

<PAGE>

                                      -20-
                        Association of American Railroads
                              Communication Manual
Part 1-B-1                                                                  1989
- ------------------------------------------------------------------------------

                                   M-Tie Wires

M-1      A  type  of  tie  should  be  used  which  will  develop  the  greatest
         practicable holding power without injury to the line conductors.

                                  N-Conductors

N-1      Conductors  should be of material or  combinations  of materials  which
         will not corrode excessively under the prevailing conditions.

N-2      Conductors of material  other than those  specified in Table N-1 should
         be of such size and so erected  as to have a  mechanical  strength  not
         less than that of the sizes of copper conductors specified in Table N-1

N-3      The minimum  allowable  sizes of  conductors  in a span crossing over a
         railroad  which  does not in the  same  span  also  cross  over  supply
         conductors  in  excess of 750  volts to  ground,  should be as given in
         Table N-1.

                                 Table No. N-1
                         Recommended Minimum Wire Sizes

<TABLE>
<CAPTION>
                                                      Spans Exceeding 125 Ft.
   Conductor           Spans 125 Ft. or Less          up to 150 FT. (Note)

                                      Diameter                          Diameter
                       Gage           Inches          Gage              Inches
<S>                     <C>           <C>           <C>                <C>

   Copper,
   hard-drawn           10 AWG        0.102           9 AWG             0.114

   Steel,
   Galvanized:
       In general       10 BWG        0.134           8 BWG             0.165
       In rural
       districts
       of arid
       regions          12 BWG        0.109          10 BWG             0.134
</TABLE>

Note:    If spans in excess of 150 ft. are necessary, the size of conductors
         specified above, or the sags of the conductors, should be
         correspondingly increased.

N-4      Paired or single  distributing wires without a suspension strand should
         in no case be used for spans  longer  than 100 ft.  in a heavy  loading
         district,  125 ft. in the medium loading  district,  and 150 ft. in the
         light  loading  district.  Each  wire  of a  pair  not  supported  by a
         suspension strand should have an ultimate strength of not less than 170
         lb. Single distributing wires not supported by suspension strand should
         have an ultimate strength of not less than 340 lb.

<PAGE>
                                      -21-
                        Association of American Railroads
                              Communication Manual
1989                                                                  Part 1-B-1
- ------------------------------------------------------------------------------

N-5   Splices  should,  so far as  practicable,  be avoided in the  crossing and
      adjacent  spans,  unless  they are of such a type and so made as to have a
      strength  substantially  equal to that of the conductors in which they are
      placed. Taps should be avoided in the crossing span where practicable, but
      if  required,  they should be of a type which will not impair the strength
      of the conductors to which they are attached.

                                     P-Sags

P-1   Table P-1 specifies  recommended sags for wires shown in Table N-1. Where,
      however, the wires in the communication line are strung in accordance with
      recognized  practices,  the  stringing  tensions  employed  in  the  line,
      generally will be satisfactory in the crossing span.

                                    Table P-1
                         Recommended Wire Stringing Sags
                       Heavy and Medium Loading Districts

<TABLE>
<CAPTION>
Span Length                       Temperature Deg. F
  in Feet        100      80      60      40      20       0      -20
<S>             <C>      <C>     <C>     <C>     <C>      <C>     <C>

                                  Sag in inches

   70            5-1/2    4-1/2   3-1/2   2-3/4   2-1/4   1-3/4   1-1/2

   80            7-1/2    6       4-1/2   3-1/2   2-3/4   2-1/2   2

   90            9-1/2    7-1/2   5-1/2   4-1/2   3-1/2   3       2-1/2

  100           11-1/2    9       7       5-1/2   4-1/2   3-3/4   3-1/4

  110           14       11       8-1/2   6-1/2   5-1/2   4-1/2   4

  120           17       13      10       8       6-1/2   5-1/2   4-1/2

  130           20       15      12       9-1/2   7-1/2   6-1/2   5-1/2

  140           23       18      14      11       8-1/2   7-1/2   6-1/2

  150           26       20      16      13      10       8-1/2   7
</TABLE>

<PAGE>

                                      -22-
                        Association of American Railroads
                              Communication Manual
Part 1-B-1                                                                  1989
- ------------------------------------------------------------------------------

                              Table P-1 (Continued)
                         Recommended Wire Stringing Sags
                             Light Loading District

<TABLE>
<CAPTION>
Span Length                       Temperature Deg. F
  in Feet        120       100     80      60      40      20       0
<S>            <C>       <C>      <C>     <C>     <C>      <C>     <C>

                                  Sag in inches

   90           7-1/2     6-1/2    5-1/2   4-1/2   3-1/2   3       1-1/2

  100           9-1/2     8        6-1/2   5-1/2   4-1/2   3-3/4   3-1/4

  110          11-1/2     9-1/2    8       6-1/2   5-1/2   4-1/2   4

  120          14        11-1/2    9       7-1/2   6-1/2   5-1/2   4-1/2

  130          16        13       11       9       7-1/2   6-1/2   5-1/2

  140          18        15       13      10-1/2   8-1/2   7-1/2   6-1/2

  150          21        18       15      12      10       8-1/2   7
</TABLE>

                                     Q-Guys

Q-1   Material:  Guys should be of galvanized  steel or other material that will
      not corrode excessively under the prevailing conditions.

Q-2   Side Guys:  Poles  supporting the crossing span should be side-guyed  with
      guys  having  strengths  specified  in  Appendix  B, except as provided in
      Paragraphs  Q-9 and Q-l0.  The strength  specified in this appendix may be
      obtained by using various combinations of standard guys, which, when taken
      together, will give strength at least as great as that specified.

Q-3   For the purpose of side-guying, aerial cables and their suspension strands
      should have the wire equivalents given in Table Q-1.

                                    Table Q-1
                          Recommended Wire Equiva1ents

<TABLE>
<CAPTION>
                                Equivalent Number of Open Wires

Diameter of Cable       Heavy Loading   Medium Loading   Light Loading
                        District        District         District
<S>                     <C>             <C>              <C>

Less than 1-1/4 in.           3               4                10
1-1/4 to 2-1/4 in.            4               5                15
Over 2-1/4 in.                5               6                20
</TABLE>

<PAGE>

                                      -23-
                        Association of American Railroads
                              Communication Manual
1989                                                                  Part 1-B-1
--------------------------------------------------------------------------------

Q-4   Head Guys: Poles supporting the crossing span should be head-guyed away
      from the crossing span with guys having strengths specified in Appendix C,
      except as provided in Paragraph Q-9. The strength specified in this
      appendix may be obtained by using various combinations of standard guys,
      which, when taken together, will give strength at least as great as that
      specified. For lines carrying both open wire and aerial cable, head guying
      need be provided only for the number of wires in excess of 10 if the cable
      is supported by a 6,000-lb. suspension strand or for the number of wires
      in excess of 20 if the suspension strand is 10,000-lb. or stronger.

Q-5   Head  guys  should  be  installed  so as not to  increase  tension  in the
      crossing span. In order to facilitate the installation of the head guys, a
      section of 6,000-lb. strand may be placed between the crossing poles so as
      to provide an additional support for pulling up the head guys.

Q-6   Guying at Corners  and  Terminals:  Where the line  terminates  or changes
      direction or has substantially unbalanced tension at any crossing support,
      such additional guying as may be necessary should be provided to take care
      of the additional load.

Q-7   Where a line crossing a railroad  changes  direction more than ten degrees
      at either crossing  support,  the side guy within the angle may be omitted
      and the head guy, if  required,  should be placed in the  direction of the
      adjacent  span unless the angle of turn is greater than 60 degrees.  Where
      the angle is greater  than 60 degrees,  the head guy should be placed in a
      direction away from the crossing span.

Q-8   Corner guys  should  conform to standard  guying  requirements  unless the
      guying  prescribed  in  Appendix  B is  greater,  in which case the latter
      guying shall be provided.

Q-9   Omission of Guys: Guys may be omitted in the following cases:

      (a)   Side  guys  may be  omitted  where  the  poles  when new will not be
            stressed  to  more  than  25%  of  their  ultimate  strengths,  when
            subjected to the  transverse  load  specified in Paragraph  F-3 (a),
            except as otherwise  permitted in Paragraph Q-10. The maximum number
            of wires  which can be carried  by poles of various  classes to meet
            this requirement is given in Appendix D.

      (b)   Head  guys  may be  omitted  where  the  poles  when new will not be
            stressed  to more than  66-2/3%  of their  ultimate  strengths  when
            subjected to the longitudinal load

<PAGE>
                                      -24-
                        Association of American Railroads
                              Communication Manual
Part 1-B-1                                                                 1989
-------------------------------------------------------------------------------

        specified in Paragraph  F-3 (b). The maximum  number of wires of various
        sizes  which can be  carried  by poles of  various  classes to meet this
        requirement is given in Appendix F.

Q-1O    Where a communication line paralleling a railroad track on the
        right-of-way of the railroad crosses any of the minor tracks listed
        under Subparagraphs (a), (c), (d) and (e) of Paragraph B-9, the side
        guys may be omitted, provided the crossing poles when new will not be
        stressed to more than 33-1/3% of their ultimate strengths when
        subjected to the transverse load specified in Paragraph F-3 (a). The
        maximum number of wires which can be carried by poles of various classes
        to meet this requirement is given in Appendix E.

Q-11    If, however,  under the conditions stated in Paragraph Q-l0, there is an
        angle in the line at either  crossing  pole,  corner guys  sufficient to
        withstand the  unbalanced  load on such poles should be installed.  Head
        guys may be omitted unless conductor tensions are not balanced at one or
        both poles due to the dead-ending of any of the wires.  Where conductors
        are  dead-ended,  guys of  strengths  specified  in Appendix C should be
        provided.

Q-12    Guying in Special Cases: Where, on account of physical conditions, it
        is impracticable to side guy the crossing poles, as specified in
        Paragraph Q-2, or to provide the strength of an unguyed pole specified
        in Paragraphs Q-9 and Q-l0, the requirements may be met by head-guying
        and side-guying the line as near as practicable to the crossing,
        provided the line is approximately straight and the intermediate poles
        are not of a class lower than those specified in Paragraph G-2 and that
        a strand of strength equivalent to the load in pounds for which
        head-guying is required, is run between the two guyed poles. Where such
        guying is employed, it should meet the requirements of paragraphs Q-2
        to Q-5, inclusive, and should be applied at a distance not exceeding
        500 ft. from the nearest crossing pole. The strand should be attached
        to the guyed poles close to the point at which the head guys are
        attached, and should be securely attached to every pole between the
        guyed poled.

Q-13    Guy Leads: Guy anchors should, where practicable, be located so that the
        horizontal  distance  from the ground line of the pole to the guy or guy
        rod will be not less than the height above ground of the  attachment  of
        the guy to the poles for head  guys,  and not less than  one-third  that
        height for side guys.  The guys should be attached as near to the center
        of the load as  practicable.  (See Figure  1B1-2 for method of measuring
        guy lead and height.)

<PAGE>

                                      -25-
                        Association of American Railroads
                              Communication Manual
1989                                                                 Part 1-B-1
-------------------------------------------------------------------------------

Q-14    Methods of Anchoring  Guys: The anchorage for guys shall in all cases be
        adequate to develop the required  strength of the guys attached to them.
        Guys should preferably be attached to anchors set in earth or secured in
        rock.  Where this is  impracticable,  guys may be  attached  to stubs or
        poles which are properly  anchor guyed,  or to buildings or other secure
        structures. Guys should not be attached to trees.

Q-15    Guy Rods: Guy rods not smaller than those  specified in Table Q-2 should
        be employed.  The length of guy rods should be  sufficient so that where
        the  anchor  is set to  adequate  depth,  the eye of the rod will not be
        below the surface of the ground.

                                    Table 0-2
                      Recommended Minimum Size of Guy Rods

<TABLE>
<CAPTION>
           Size of Guy                                         Diameter of Guy Rod
            (Pounds)                                                (Inches)
<S>                                                            <C>
             2,200                                                      1/2
             4,000                                                      1/2
             6,000                                                      5/8
            10,000                                                      3/4
            16,000                                                      7/8
</TABLE>

Q-16    Anchors:  Where  expandable  or screw anchors or screw anchors are used,
        manufacturer's  specifications  must be followed as to depth and size of
        anchor.

Q-17    Method of Securing Guy Strand: In securing guys,  clamps,  strand clamps
        or guy-grip  dead-ends of suitable  strength  should be employed.  A guy
        strand may be attached to the pole either by the  wrapping  method or by
        attachment to suitable eye bolts or approved connector.  The size of the
        eye bolt or  approved  connector  should be  sufficient  to develop  the
        required strength of the guy.

Q-18    Guards  for Guys:  When  anchor  guys are  located  so that  persons  or
        livestock  may come into  accidental  contact with them,  they should be
        equipped with suitable guards.

Q-19    Pole Braces:  Pole braces may be used in the place of guys called for in
        Paragraphs Q-2 to Q-8, inclusive, to provide equivalent strength.

                               R-Suspension Strand
R-1     Material:  Suspension  strands  should be of  galvanized  steel or other
        material  that  will  not  corrode   excessively  under  the  prevailing
        conditions.

<PAGE>

                                      -26-
                        Association of American Railroads
                              Communication Manual
Part 1-B-1                                                                 1989
-------------------------------------------------------------------------------

R-2      Sizes:  For spans of 150 ft. or less, Table R-l gives the minimum
         sizes of suspension strand to be used for supporting different sizes
         of serial cable.

                                    Table R-1
                 Recommended Minimum Sizes of Suspension Strand
<TABLE>
<CAPTION>
        Weights of Cable in                                 Suspension Strand (Nominal
          Pounds per Foot                                   Ultimate Strength in Pounds)
<S>                                                                  <C>
        Less than 2.25                                                  6,000
        2.25 to 5                                                      10,000
        Exceeding 5 and less than 8.5                                  16,000
</TABLE>

R-3     For spans  exceeding 150 ft. or for heavier  cables,  a  proportionately
        larger  suspension  strand or other  proportionately  stronger  means of
        support should be used.

R-4     Attachment to Poles: The suspension strand should be attached to the
        pole by means of standard cable suspension clamp secured by a bolt not
        less than 5/8 in. in diameter extending through the pole. Three-bolt
        suspension clamps should be used with 10,000 and 16,000 lb. suspension
        strand; single-bolt suspension clamps may be used for 6,000 lb.
        suspension strand.

R-5     Where one or both of the crossing  poles is a corner pole and the corner
        pull is in excess of 5 ft.,  suspension  clamps with  flared  grooves or
        other  means that will  prevent  sharp  bends in the  suspension  strand
        should be  employed.  Where the cable is  carried  on the  inside of the
        corner,  reinforcing links or other equivalent means should also be used
        where the corner pull exceeds the values given in Table R-2.

                                    Table R-2
<TABLE>
<CAPTION>
             Size of
        Suspension Strand                                                     Pull on Corner
<S>                                                                           <C>
                6M                                                            15 ft. or over
               lOM                                                            15 ft. or over
               16M                                                            10 ft. or over
</TABLE>

R-6     Safety  straps,  grade  clamps,  reinforcing  bands or other  equivalent
        devices which will prevent progressive  stripping of cable from entering
        the  crossing  span  should be placed at each  crossing  pole for cables
        1-1/2 in. in diameter or larger.

R-7     Where the suspension  strand is dead-ended on a crossing pole, it may be
        attached by the  wrapping  method or by  attaching  it to a suitable eye
        bolt or approved connector.
<PAGE>

                                      -27-
                        Association of American Railroads
                              Communication Manual

1989                                                                  Part 1-B-1
- ------------------------------------------------------------------------------

        The size of the eye bolt should be  sufficient  to develop the  required
        strength of the suspension strand.

R-8     Sags: Suspension strands for aerial cables should be strung so that when
        the  cables  are in place the sags will be not less than  given in Table
        R-3.

                    S-Cable Attachments to Suspension Strands

S-1     Cables should be attached to the suspension  strand in the crossing span
        by means of suitable  metal rings or spirally  wound  lashing wire which
        will resist  corrosion.  The spacing of rings should not be greater than
        indicated  in Table S-1. The spirals of lashing wire should be so spaced
        that they will safely support the cable and prevent  appreciable sagging
        between points of support.  The metal rings or lashing wire should be so
        installed that the protective coating will not be damaged.

                                    Table S-1
                       Recommended Spacing of Cable Rings

<TABLE>
<CAPTION>
                  Weight of Cable in                                    Spacing of Cable Rings
                  Pounds per Foot                                            in Inches
                  <S>                                                           <C>
                      Less than 5                                                20
                      5 to 8.5                                                   15
</TABLE>

                         Part II - Underbridge Crossings
                                    T-General

T-1     Avoidance of Attachments:  The line preferably  should be so graded that
        it will be unnecessary to make attachment to the bridge  structure.  If,
        for any reason,  it is impracticable to grade a cable line to pass under
        a bridge and it is  undesirable  to attach to the bridge,  vertical runs
        may be made on poles adjacent to the bridge.

T-2     Attachments:  Unless  approved by the railroad  company,  attachments to
        railroad  steel  bridges  should not be made by devices that require the
        drilling  or cutting of the bridge  structure  or the removal of rivets,
        and the attachments should be so made that wires,  cables and suspension
        strand will not be in metallic contact with the bridge structure.

T-2     Clearance from  Abutments:  The clearance of any conductor from the face
        of the abutment,  when not attached  thereto,  should be not less than 3
        ft.  for steel  bridges.  Cables or  paired  wires and their  suspension
        strand may be attached  directly to the face of the  abutment if located
        not less than 24 in. below the  elevation  of the bridge seat,  and they
        should provide suitable  clearance for pedestrians,  vehicles,  etc., as
        may be necessary.

<PAGE>

                                      -28-
                        Association of American Railroads
                              Communication Manual

Part 1-B-1                                                                  1989
- ------------------------------------------------------------------------------

                                    Table R-3
                    Recommended Minimum Sags in Aerial Cables
                            (No Ice or Wind Loading)

<TABLE>
<CAPTION>
Average Weight of              Size of                                Sags in inches for Spans
Cables in Pounds       Temp.   Strand       90       100       110        120       130        140        150
per Foot               F.                   Ft.       Ft.       Ft.        Ft.       Ft.        Ft.        Ft.
<S>                   <C>     <C>           <C>      <C>       <C>     <C>          <C>         <C>       <C>
                        20                    5         6         7          8        10         11         13
Up to .6                60      6,000         5         7         8         10        11         13         15
                       100                    6         8        10         12        14         16         18

Exceeding .6 but        20                    6         7         9         10        12         14         16
not exceeding .8        60      6,000         6         8        10         12        14         16         18
                       100                    8         9        11         13        16         18         21

Exceeding .8 but        20                    7         9        11         13        15         17         20
not exceeding 1.1       60      6,000         8        10        12         14        17         19         22
                       100                    9        11        13         15        18         21         24

Exceeding 1.1 but       20                    9        11        13         16        19         22         25
not exceeding 1.4       60      6,000        10        12        15         17        20         24         27
                       100                   10        13        16         19        22         25         29

Exceeding 1.4 but       20                   10        13        16         19        22         25         29
not exceeding 1.8       60      6,000        11        14        17         20        23         27         31
                       100                   12        15        18         21        25         29         33

Exceeding l.8 but       20                   12        14        17         20        24         28         32
not exceeding 2.25      60      6,000        12        15        18         22        26         30         34
                       100                   13        16        20         24        28         32         37

Exceeding 2.25 but      20                    8        10        12         15        17         20         23
not exceeding 2.8       60     10,000         9        11        13         16        19         22         25
                       100                   10        12        15         17        20         24         27

Exceeding 2.8 but       20                   10        13        16         19        22         25         29
not exceeding 3.9       60     10,000        11        14        17         20        23         27         31
                       100                   12        15        18         21        25         29         33

Exceeding 3.9 but       20                   12        14        17         20        24         28         32
not exceeding 4.4       60     10,000        12        15        18         22        26         30         34
                       100                   13        16        19         23        27         31         36

Exceeding 4.4 but       20                   13        16        19         23        27         31         36
not exceeding 5.0       60     10,000        14        17        20         24        29         33         38
                       100                   14        18        22         26        30         35         40
</TABLE>

<PAGE>

                                      -29-
                        Association of American Railroads
                              Communication Manual

1989                                                                  Part 1-B-1

                              Table R-3 (Continued)

<TABLE>
<CAPTION>
Average Weight of              Size of                                Sags in inches for Spans
Cables in Pounds       Temp.   Strand       90       100       110        120       130        140        150
per Foot               F.                   Ft.       Ft.       Ft.        Ft.       Ft.        Ft.        Ft.
<S>                   <C>     <C>           <C>      <C>       <C>       <C>        <C>         <C>       <C>
                        20                   11        13       16          19       23         26         30
Up to 5.0 but           60     16,000        12        14       17          20       24         28         32
not exceeding 6.3      100                   12        15       18          22       26         30         24

Exceeding 6.3 but       20                   12        14       17          20       24         28         32
not exceeding 7.2       60     16,000        12        15       18          22       26         30         34
                       100                   13        16       20          24       28         32         37

Exceeding 7.2 but       20                   13        16       19          22       26         31         35
not exceeding 8.1       60     16,000        13        16       19          23       27         31         36
                       100                   14        17       20          24       29         33         38

Exceeding 8.1 but       20                   13        16       20          24       28         32         37
not exceeding 8.6       60     16,000        14        17       20          24       29         33         38
                       100                   14        18       22          26       30         35         40
</TABLE>

T-4     Clearance  from Bridge  Structure:  The clearance  between any conductor
        attached  to the  bridge in open  construction,  and any  portion of the
        bridge  structure  should  preferably  be not less than 6 in., but in no
        case less than 3 in. The clearance between any conductor not attached to
        the bridge and any portion of the bridge structure should  preferably be
        not less than 1 ft., but in no case less than 6 in.

                        Part III - Underground Crossings
                                    U-General

U-1     Arrangement for Work: The work should be done at such time and in such a
        manner as not to interfere with the proper and safe use or operation of
        the property and tracks of the railroad company, previous arrangements
        having been made with the duly authorized representative of the
        railroad company for date and time of commencement. Where iron or mild
        steel pipes are used, as permitted in Paragraph U-7(d), consideration
        should be given to forcing or driving them under the roadbed instead of
        laying in an open trench.

U-2     Location:  The underground  system on the railroad property should be so
        located as to be subject to the least practicable  disturbance.  Railway
        tracks and underground  structures,  including catch basins,  gas pipes,
        etc., should be avoided where practicable. The manholes, pull boxes, and
        terminals should, where practicable, be located away from the roadbed.

<PAGE>
                                      -30-
                        Association of American Railroads
                              Communication Manual
Part 1-B-1                                                                  1989
- ------------------------------------------------------------------------------

U-3     Side Clearance from Rail: Where underground conduit construction
        terminates at terminal poles, the side clearance of such poles from the
        nearest track rail should be as provided in Paragraph E-2. Where
        manholes, handholes, etc., are employed, which project above the surface
        of the ground, the side clearance, unless physical conditions prevent,
        shall be not less than 17 ft. from the nearest track rail, except that
        at sidings, a clearance of 7 ft. may be allowed. At loading sidings,
        sufficient space shall be left for a driveway.

U-4     Clearance Below Base of Rail: The top of all conduit protection,  except
        as specified in Paragraph U-8 should  generally be located at a depth of
        not  less  than  48  in.   below  the  base  of  rail.   Where  this  is
        impracticable,  or for other  reasons,  this clearance may be reduced by
        agreement between the parties concerned. In no case, however, should the
        top of the  conduit  protection  extend  higher  than the  bottom of the
        ballast section which is subject to working or cleaning.

U-5     Where unusual  conditions  exist or where  proposed  construction  would
        interfere  with existing  construction,  a greater depth than  specified
        above may be required.

U-6     Arrangement of Conduit  System:  The arrangement of ducts in the conduit
        system contemplated under this specification  should consist of not more
        than four ducts of vitrified clay, four impregnated fiber ducts or three
        creosoted   wood  ducts  in  width.   Where   other   arrangements   are
        contemplated,  additional strength of construction and protection may be
        required.

U-7     Protection of Ducts:  Ducts  extending  under the roadbed section of the
        right-of-way  should be protected under the roadbed section as specified
        below and for a distance of at least 6 ft.  beyond each outside rail. In
        other sections of the right-of-way,  concrete,  creosoted plank or other
        forms of protection should be provided where necessary to prevent injury
        to the conduit system.

        (a)      Vitrified Clay Ducts: The ducts should be laid on at least 4
                 in. of concrete with at least 3 in. of concrete on the top and
                 sides.

        (b)      Impregnated Fiber and Other Tubular Composition Ducts: The
                 ducts should be completely encased in concrete. The encasement
                 should be at least 4 in. thick on bottom and at least 3 in.
                 thick on top and sides.

        (c)      Creosoted Wood Ducts: The ducts should be protected on the top
                 and bottom by means of creosoted wood plank not less than 1-1/2
                 in. in thickness or by 3 in. of concrete.

<PAGE>
                                      -31-
                        Association of American Railroads
                              Communication Manual
1989                                                                  Part 1-B-1
- ------------------------------------------------------------------------------

        (d)      Iron or Mild Steel Pipes: Such pipes should normally be encased
                 in concrete as provided in (b) above.  However,  where physical
                 or chemical conditions will permit, a conduit system consisting
                 of a group of not more than four iron or mild  steel  pipes not
                 more than 4 in. in  diameter  may be laid  beneath  the roadbed
                 without any form of protection.

U-8     Where physical and chemical conditions will permit, a conduit consisting
        of not more than two iron pipes, not exceeding 4 in. in diameter, or two
        creosoted wood ducts not exceeding 6 in. square, or one or more cables
        of a type designed for burying directly in the earth may be laid in the
        ground beneath railroad tracks without any form of protection at a
        minimum depth of 48 in. below the base of the rail, unless the worked
        ballast section of the roadbed exceeds 18 in., in which case the conduit
        shall be laid below the ballast section. Cables under main line tracks
        should preferably be installed in conduit to prevent disturbance to the
        roadbed at times of replacement.

U-9     Excavation:  The  excavated  material  shall  be so  placed  as  not  to
        interfere  with  traffic.  Ballast  material  excavated  should  be kept
        separate and free from earth.

U-10    Shoring:  Where necessary to prevent caving,  the sides of trench should
        be supported with suitable  planks and bracing.  No bracing shall extend
        above  the base of the rail or be  attached  in any way to the  rails or
        ties.

U-ll    Grading and Drainage: The trench should be so graded that it will have a
        fall of at least 3 in. in l00 ft. toward the lower manhole or terminal,
        or from an intermediate point toward both manholes or terminals, and the
        bottom of the trench should be graded evenly. Where conditions require,
        a sump or other suitable drainage should be provided for manholes.

U-12    Backfilling:  The trench should be backfilled with earth to the subgrade
        line  and  tamped.  Track  ballast  shall  be  replaced  under  railroad
        supervision.

U-13    Removing Surplus Material: All surplus material remaining after the work
        has been  finished  should be removed,  and if disposed of upon railroad
        property, it should be under railroad supervision.

U-14    Concrete:  All concrete employed should be such that when tested in 6 by
        12 inch cylinders after 28 days, it should  withstand a compressive test
        of not less than 2,000 lb./sq. in. square inch without rupture. Concrete
        should be thoroughly tamped.

<PAGE>
                                      -32-
                        Association of American Railroads
                              Communication Manual
Part 1-B-1                                                                  1989
- ------------------------------------------------------------------------------

                        Appendix A: District Loading Map

                        [DISTRICT LOADING MAP DIAGRAM]
<PAGE>

                                      -33-
                        Association of American Railroads
                              Communication Manual

1989                                                                  Part 1-B-1
- ------------------------------------------------------------------------------

                                   Appendix B
             Recommended Strength of Side Guys Required, in Pounds
                (Combinations of Standard Size Guys May Be Used)

            Average of Crossing and Adjacent Spans 100 Feet or Less

<TABLE>
<CAPTION>
Number    Ratio of Guy Lead to Height Not less than
of        1           2/3            1/2           1/3
Wires
                         Heavy Loading
                         -------------
<S>      <C>         <C>            <C>           <C>
  2       2,200       2,200          2,200         2,200
  4       2,200       2,200          2,200         2,200
  6       2,200       2,200          2,200         4,000
 10       2,200       2,200          4,000         4,000
 20       4,000       4,000          4,000         6,000
 30       4,000       4,000          6,000        10,000
 40       4,000       6,000         10,000        10,000
 50       6,000      10,000         10,000        12,000
 60       6,000      10,000         10,000        16,000
 70      10,000      10,000         12,000        16,000
 80      10,000      10,000         16,000        20,000
</TABLE>

<PAGE>

                                      -34-
                        Association of American Railroads
                              Communication Manual

1989                                                                  Part 1-B-1
- ------------------------------------------------------------------------------

                             Appendix B (Continued)
             Recommended Strength of Side Guys Required, in Pounds
                (Combinations of Standard Size Guys May Be Used)

            Average of Crossing and Adjacent Spans 100 Feet or Less

<TABLE>
<CAPTION>
Number    Ratio of Guy Lead to Height Not less than
of        1           2/3            1/2           1/3
Wires
                         Medium Loading
                         --------------
<S>       <C>         <C>           <C>           <C>
  2       2,200       2,200          2,200         2,200
  4       2,200       2,200          2,200         2,200
  6       2,200       2,200          2,200         2,200
 10       2,200       2,200          2,200         2,200
 20       4,000       4,000          4,000         4,000
 30       4,000       4,000          4,000         6,000
 40       4,000       4,000          4,000         6,000
 50       4,000       4,000          6,000        10,000
 60       4,000       6,000          6,000        10,000
 70       4,000       6,000         10,000        10,000
 80       6,000       6,000         10,000        10,000
</TABLE>

<PAGE>

                                      -35-
                        Association of American Railroads
                              Communication Manual

1989                                                                  Part 1-B-1
- ------------------------------------------------------------------------------

                             Appendix B (Continued)

            Average of Crossing and Adjacent Spans 100 Feet or Less

<TABLE>
<CAPTION>
Number    Ratio of Guy Lead to Height Not less than
of        1           2/3            1/2           1/3
Wires
                         Light Loading
                         -------------
<S>       <C>         <C>           <C>           <C>
  2       2,200       2,200          2,200         2,200
  4       2,200       2,200          2,200         2,200
  6       2,200       2,200          2,200         2,200
 10       2,200       2,200          2,200         2,200
 20       4,000       4,000          4,000         4,000
 30       4,000       4,000          4,000         6,000
 40       4,000       4,000          4,000         6,000
 50       4,000       4,000          6,000         6,000
 60       4,000       4,000          6,000        10,000
 70       4,000       6,000          6,000        10,000
 80       4,000       6,000         10,000        10,000
</TABLE>
<PAGE>
                                      -36-
                        Association of American Railroads
                              Communication Manual
Part 1-B-1                                                                 1989
- -----------------------------------------------------------------------------

                             Appendix B (Continued)
              Recommended Strength of Side Guys Required, in Pounds
                (Combinations of Standard Size Guys May Be Used)

             Average of Crossing and Adjacent Spans 100 to 125 Feet

<TABLE>
<CAPTION>
Number          Ratio of Guy Lead to Height Not less than
of             1            2/3           1/2           1/3
Wires
                                  Heavy Loading
                               -------------
<S>           <C>          <C>           <C>           <C>
  2            2,200        2,200         2,200         2,200
  4            2,200        2,200         2,200         2,200
  6            2,200        2,200         2,200         4,000
 10            2,200        4,000         4,000         6,000
 20            4,000        4,000         4,000         6,000
 30            4,000        6,000         6,000        10,000
 40            6,000       10,000        10,000        12,000
 50            6,000       10,000        10,000        16,000
 60           10,000       10,000        12,000        16,000
 70           10,000       12,000        16,000        20,000
 80           10,000       16,000        16,000        26,000
</TABLE>

<PAGE>

                                      -37-
                        Association of American Railroads
                              Communication Manual

1989                                                                 Part 1-B-1
- -----------------------------------------------------------------------------

                             Appendix B (Continued)

            Average of Crossing and Adjacent Spans 100 to 125 Feet

<TABLE>
<CAPTION>
Number         Ratio of Guy Lead to Height Not less than
of             1             2/3           1/2           1/3
Wires
                                 Medium Loading
                               --------------
<S>           <C>          <C>           <C>           <C>
  2            2,200         2,200         2,200         2,200
  4            2,200         2,200         2,200         2,200
  6            2,200         2,200         2,200         2,200
 10            2,200         2,200         2,200         4,000
 20            4,000         4,000         4,000         4,000
 30            4,000         4,000         4,000         6,000
 40            4,000         4,000         6,000        10,000
 50            4,000         6,000         6,000        10,000
 60            6,000         6,000        10,000        10,000
 70            6,000        10,000        10,000        12,000
 80            6,000        10,000        10,000        16,000
</TABLE>

<PAGE>

                                      -38-
                        Association of American Railroads
                              Communication Manual

Part 1-B-1                                                                 1989
- -----------------------------------------------------------------------------

                             Appendix B (Continued)
              Recommended Strength of Side Guys Required in Pounds
                (Combinations of Standard Size Guys May Be Used)

             Average of Crossing and Adjacent Spans 100 to 125 Feet

<TABLE>
<CAPTION>
Number             Ratio of Guy Lead to Height Not less than
of             1            2/3           1/2           1/3
Wires
                                  Light Loading
                               -------------
<S>           <C>          <C>           <C>           <C>
  2            2,200        2,200         2,200         2,200
  4            2,200        2,200         2,200         2,200
  6            2,200        2,200         2,200         2,200
 10            2,200        2,200         2,200         2,200
 20            4,000        4,000         4,000         4,000
 30            4,000        4,000         4,000         6,000
 40            4,000        4,000         6,000         6,000
 50            4,000        6,000         6,000        10,000
 60            4,000        6,000         6,000        10,000
 70            6,000        6,000        10,000        10,000
 80            6,000        6,000        10,000        12,000
</TABLE>

<PAGE>

                                      -39-
                        Association of American Railroads
                              Communication Manual
1989                                                                  Part 1-B-1
- ------------------------------------------------------------------------------

                             Appendix B (Continued)

             Average of Crossing and Adjacent Spans 125 to 150 Feet

<TABLE>
<CAPTION>
Number          Ratio of Guy Lead to Height Not less than
of                1          2/3        1/2         1/3
Wires

                              Heavy Loading
                              -------------

<S>             <C>        <C>        <C>         <C>
 2               2,200      2,200      2,200       2,200

 4               2,200      2,200      2,200       4,000

 6               2,200      2,200      4,000       4,000

10               4,000      4,000      4,000       6,000

20               4,000      4,000      6,000      10,000

30               6,000      6,000     10,000      10,000

40               6,000     10,000     10,000      16,000

50              10,000     10,000     12,000      16,000

60              10,000     12,000     16,000      20,000

70              10,000     16,000     16,000      26,000

80              12,000     16,000     20,000      26,000
</TABLE>

<PAGE>

                                      -40-
                        Association of American Railroads
                              Communication Manual
Part 1-B-1                                                                  1989
- ------------------------------------------------------------------------------

                             Appendix B (Continued)
             Recommended Strength of Side Guys Required, in Pounds
                (Combinations of Standard Size Guys May Be Used)

             Average of Crossing and Adjacent Spans 125 to 150 Feet

<TABLE>
<CAPTION>
Number          Ratio of Guy Lead to Height Not less than
of                1          2/3        1/2         1/3
Wires

                             Medium Loading
                             --------------

<S>             <C>        <C>        <C>         <C>
 2               2,200      2,200      2,200       2,200

 4               2,200      2,200      2,200       2,200

 6               2,200      2,200      2,200       2,200

10               2,200      2,200      2,200       4,000

20               4,000      4,000      4,000       4,000

30               4,000      4,000      6,000       6,000

40               4,000      4,000      6,000      10,000

50               6,000      6,000     10,000      10,000

60               6,000     10,000     10,000      12,000

70               6,000     10,000     10,000      16,000

80              10,000     10,000     12,000      16,000
</TABLE>

<PAGE>

                                      -41-
                        Association of American Railroads
                              Communication Manual
1989                                                                  Part 1-B-1
- ------------------------------------------------------------------------------

                             Appendix B (Continued)

             Average of Crossing and Adjacent Spans 125 to 150 Feet

<TABLE>
<CAPTION>
Number          Ratio of Guy Lead to Height Not less than
of                1          2/3        1/2         1/3
Wires

                             Light Loading
                             -------------

<S>             <C>        <C>        <C>         <C>
 2              2,200       2,200      2,200       2,200

 4              2,200       2,200      2,200       2,200

 6              2,200       2,200      2,200       2,200

10              2,200       2,200      2,200       2,200

20              4,000       4,000      4,000       4,000

30              4,000       4,000      4,000       6,000

40              4,000       4,000      6,000      10,000

50              4,000       6,000      6,000      10,000

60              6,000       6,000     10,000      10,000

70              6,000      10,000     10,000      12,000

80              6,000      10,000     10,000      16,000
</TABLE>

<PAGE>

                                      -42-
                        Association of American Railroads
                              Communication Manual
Part 1-B-1                                                                  1989
- ------------------------------------------------------------------------------

                             Appendix B (Continued)
             Recommended Strength of Side Guys Required, in Pounds
                (Combinations of Standard Size Guys May Be Used)

             Average of Crossing and Adjacent Spans 150 to 175 Feet

<TABLE>
<CAPTION>
Number          Ratio of Guy Lead to Height Not less than
of                1          2/3        1/2         1/3
Wires

                             Heavy Loading
                             -------------

<S>             <C>        <C>        <C>         <C>
 2              2,200       2,200      2,200       2,200

 4              2,200       2,200      2,200       4,000

 6              2,200       2,200      4,000       4,000

10              4,000       4,000      6,000       6,000

20              4,000       6,000      6,000      10,000

30              6,000      10,000     10,000      12,000

40             10,000      10,000     12,000      16,000

50             10,000      12,000     16,000      20,000

60             10,000      16,000     16,000      26,000

70             12,000      16,000     20,000      30,000

80             16,000      20,000     26,000      30,000
</TABLE>

<PAGE>

                                      -43-
                        Association of American Railroads
                              Communication Manual

1989                                                                  Part 1-B-1
- ------------------------------------------------------------------------------

                             Appendix B (Continued)

             Average of Crossing and Adjacent Spans 150 to 175 Feet

<TABLE>
<CAPTION>
     Number                  Ratio of Guy Lead to Height Not less than
     of                  1               2/3             1/2             1/3
     Wires
                                    Medium Loading
                                    --------------
<S>                    <C>            <C>            <C>              <C>
         2               2,200           2,200           2,200           2,200
         4               2,200           2,200           2,200           2,200
         6               2,200           2,200           2,200           4,000
        10               2,200           2,200           4,000           4,000
        20               4,000           4,000           4,000           6,000
        30               4,000           4,000           6,000          10,000
        40               4,000           6,000          10,000          10,000
        50               6,000          10,000          10,000          12,000
        60               6,000          10,000          10,000          16,000
        70              10,000          10,000          12,000          16,000
        80              10,000          10,000          16,000          20,000

</TABLE>

<PAGE>

                                      -44-
                        Association of American Railroads
                              Communication Manual

Part 1-B-1                                                                  1989
- ------------------------------------------------------------------------------

                             Appendix B (Continued)

             Recommended Strength of Side Guys Required, in Pounds
                (Combinations of Standard Size Guys May Be Used)

             Average of Crossing and Adjacent Spans 150 to 175 Feet

<TABLE>
<CAPTION>
     Number                  Ratio of Guy Lead to Height Not less than
     of                  1               2/3             1/2             1/3
     Wires
                                  Light Loading
                                 -------------
<S>                    <C>            <C>            <C>              <C>
         2               2,200           2,200           2,200           2,200
         4               2,200           2,200           2,200           2,200
         6               2,200           2,200           2,200           2,200
        10               2,200           2,200           2,200           4,000
        20               4,000           4,000           4,000           4,000
        30               4,000           4,000           6,000           6,000
        40               4,000           6,000           6,000          10,000
        50               6,000           6,000          10,000          10,000
        60               6,000          10,000          10,000          12,000
        70               6,000          10,000          10,000          16,000
        80              10,000          10,000          10,000          16,000
</TABLE>

<PAGE>

                                      -45-
                        Association of American Railroads
                              Communication Manual

1989                                                                  Part 1-B-1
--------------------------------------------------------------------------------

                             Appendix B (Continued)

             Average of Crossing and Adjacent Spans 175 to 200 Feet

<TABLE>
<CAPTION>
     Number                  Ratio of Guy Lead to Height Not less than
     of                  1               2/3             1/2             1/3
     Wires
                                  Heavy Loading
                                 -------------
<S>                    <C>            <C>            <C>              <C>
         2               2,200           2,200           2,200           2,200
         4               2,200           2,200           2,200           4,000
         6               2,200           4,000           4,000           6,000
        10               4,000           4,000           6,000          10,000
        20               4,000           6,000          10,000          10,000
        30               6,000          10,000          10,000          16,000
        40              10,000          10,000          16,000          20,000
        50              10,000          16,000          16,000          26,000
        60              12,000          16,000          20,000          26,000
        70              16,000          20,000          26,000          30,000
        80              16,000          20,000          26,000          40,000
</TABLE>

<PAGE>

                                      -46-
                        Association of American Railroads
                              Communication Manual

Part 1-B-1                                                                  1989
--------------------------------------------------------------------------------

                             Appendix B (Continued)

             Recommended Strength of Side Guys Required, in Pounds
                (Combinations of Standard Size Guys May Be Used)

             Average of Crossing and Adjacent Spans 175 to 200 Feet

<TABLE>
<CAPTION>
     Number                  Ratio of Guy Lead to Height Not less than
     of                  1               2/3             1/2             1/3
     Wires
                                 Medium Loading
                                 --------------
<S>                    <C>            <C>            <C>              <C>
         2               2,200           2,200           2,200           2,200
         4               2,200           2,200           2,200           2,200
         6               2,200           2,200           2,200           4,000
        10               2,200           2,200           4,000           4,000
        20               4,000           4,000           4,000           6,000
        30               4,000           6,000           6,000          10,000
        40               6,000           6,000          10,000          10,000
        50               6,000          10,000          10,000          16,000
        60              10,000          10,000          12,000          16,000
        70              10,000          10,000          16,000          20,000
        80              10,000          12,000          16,000          20,000
</TABLE>
<PAGE>

                                      -47-
                        Association of American Railroads
                              Communication Manual
1989                                                                  Part 1-B-1
--------------------------------------------------------------------------------

                             Appendix B (Continued)

             Average of Crossing and Adjacent Spans 175 to 200 Feet

<TABLE>
<CAPTION>
Number          Ratio of Guy Lead to Height Not less than
of                1          2/3        1/2         1/3
Wires

                              Light Loading
                              -------------

<S>             <C>        <C>        <C>         <C>
 2               2,200      2,200      2,200       2,200

 4               2,200      2,200      2,200       2,200

 6               2,200      2,200      2,200       2,200

10               2,200      2,200      2,200       4,000

20               4,000      4,000      4,000       6,000

30               4,000      4,000      6,000      10,000

40               4,000      6,000      6,000      10,000

50               6,000      6,000     10,000      12,000

60               6,000     10,000     10,000      16,000

70              10,000     10,000     10,000      16,000

80              10,000     10,000     12,000      16,000
</TABLE>

<PAGE>

                                      -48-
                        Association of American Railroads
                              Communication Manual
Part 1-B-1                                                                  1989
--------------------------------------------------------------------------------

                                   Appendix C
             Recommended Strength of Head Guys Required, in Pounds
                (Combinations of Standard Size Guys May Be Used)

<TABLE>
<CAPTION>
Number               Ratio of Guy Lead to Height Not less than
of
Wires             1-1/4       1         3/4        2/3        1/2

                                  Heavy Loading
                                   -------------

<S>             <C>        <C>        <C>         <C>        <C>
 2               4,000      4,000      4,000       4,000      4,000

 6               4,000      4,000      4,000       4,000      6,000

10               6,000      6,000      6,000      10,000     10,000

20              10,000     10,000     12,000      16,000     16,000

30              16,000     16,000     20,000      20,000     26,000

40              20,000     20,000     26,000      26,000     32,000

50              20,000     20,000     30,000      32,000     42,000

60              26,000     30,000     36,000      36,000     48,000

70              30,000     30,000     40,000      48,000     60,000

80              36,000     40,000     48,000      60,000     70,000

                                 Medium Loading
                                   --------------

 2               4,000      4,000      4,000       4,000      4,000

 6               4,000      4,000      4,000       4,000      4,000

10               4,000      4,000      6,000       6,000      6,000

20               6,000     10,000     10,000      10,000     12,000

30              10,000     10,000     12,000      16,000     16,000

40              12,000     16,000     16,000      16,000     20,000

50              16,000     16,000     20,000      20,000     26,000

60              20,000     20,000     26,000      26,000     30,000

70              20,000     20,000     26,000      30,000     36,000

80              26,000     26,000     30,000      32,000     40,000
</TABLE>

<PAGE>

                                      -49-
                        Association of American Railroads
                              Communication Manual
1989                                                                  Part 1-B-1
--------------------------------------------------------------------------------

                             Appendix C (Continued)

<TABLE>
<CAPTION>
Number               Ratio of Guy Lead to Height Not less than
of
Wires             1-1/4       1         3/4        2/3        1/2

                                  Light Loading
                                   -------------

<S>             <C>        <C>        <C>         <C>        <C>

 2               4,000      4,000      4,000       4,000      4,000

 6               4,000      4,000      4,000       4,000      4,000

10               4,000      4,000      4,000       4,000      4,000

20               4,000      6,000      6,000       6,000     10,000

30               6,000     10,000     10,000      10,000     12,000

40              10,000     10,000     10,000      12,000     16,000

50              10,000     10,000     16,000      16,000     20,000

60              12,000     16,000     16,000      16,000     20,000

70              16,000     16,000     20,000      20,000     26,000

80              16,000     20,000     20,000      26,000     30,000
</TABLE>

<PAGE>

                                      -50-
                        Association of American Railroads
                              Communication Manual
Part 1-B-1                                                                  1989
--------------------------------------------------------------------------------

                                   Appendix D

                Recommended Maximum Number of Wires Which can be
               Supported by Poles of Various Classes Without
                Side Guys at Crossings over Railroad Tracks

        (For the Special Case Covered By Paragraph Q-10, See Appendix E)

<TABLE>
Class          Average of Crossing and Adjacent Spans - Feet
of
Pole       100          125          150        175          200

                             Heavy Loading District
                           ----------------------

<S>        <C>          <C>          <C>        <C>          <C>
1           28          22           18          15           13

2           22          18           14          12           11

3           17          14           11          10            8

4           13          11            9           8            7

5           10           8            7           6            5

6            8           6            5           4            4

7            6           5            4           3            3

<CAPTION>
Class          Average of Crossing and Adjacent Spans - Feet
of
Pole       100          125          150        175          200

                             Medium Loading District
                           -----------------------

<S>        <C>          <C>          <C>        <C>          <C>
 1          53          41           33          28           24

 2          41          32           26          22           19

 3          32          25           21          17           15

 4          24          19           16          14           12

 5          18          15           12          10            9

 6          14          11            9           8            7

 7          10           8            7           6            5
</TABLE>

<PAGE>
                                      -51-
                        Association of American Railroads
                              Communications Manual
1989                                                                 Part 1-B-1
-------------------------------------------------------------------------------

                             Appendix D (Continued)

       (For the Special Case Covered By Paragraph Q-1O,  See Appendix E)

<TABLE>
<CAPTION>
Class     Average of Crossing and Adjacent Spans - Feet
 of
Pole        100      125         150      175      200

                      Light Loading District
                      ----------------------
<S>        <C>        <C>         <C>      <C>      <C>
1           --        82          65       54       46

2           81        61          49       41       35

3           58        45          37       31       27

4           42        33          27       23       20

5           29        23          19       15       14

6           19        15          13       11        9

7           10        10           8        7        6
</TABLE>

<PAGE>

                                      -52-
                        Association of American Railroads
                              Communication Manual
Part 1-B-1                                                                  1989
--------------------------------------------------------------------------------

                                   Appendix E
                Recommended Maximum Number of Wires Which can be
                 Supported by Poles of Various Classes Without
                 Side Guys at Crossings Over Minor Tracks Under
                   the Conditions Specified in Paragraph Q-10

<TABLE>
<CAPTION>
Class              Average of Crossing and Adjacent Spans - Feet
 of
Pole            100       125       150         175        200
                             Heavy Loading District
                           ----------------------
<S>            <C>       <C>       <C>         <C>        <C>
1               62        48        39          33         28

2               48        38        31          26         23

3               38        29        24          20         18

4               29        23        19          16          9

5               22        17         9           8          7

6               16         9         8           7          6

7                8         7         6           5          4
</TABLE>

<TABLE>
<CAPTION>
Class              Average of Crossing and Adjacent Spans - Feet
 of
Pole            100       125       150         175        200

                             Medium Loading District
                           -----------------------
<S>            <C>       <C>       <C>         <C>        <C>
1               --        90        76          63         54

2               --        74        59          50         42

3               75        56        45          39         33

4               55        42        35          29         25

5               40        32        26          22         19

6               20        20        20          17          9

7               10        10        10           8          7
</TABLE>

<PAGE>

                                      -53-
                        Association of American Railroads
                              Communication Manual
1989                                                                  Part 1-B-1
--------------------------------------------------------------------------------

                             Appendix E (Continued)

<TABLE>
<CAPTION>
Class            Average of Crossing and Adjacent Spans - Feet
 of
Pole            100       125       150         175        200

                             Light Loading District
                          -----------------------
<S>            <C>       <C>       <C>         <C>        <C>
1              --        --        --           81         68

2              --        --        75           61         52

3              --        70        55           46         39

4              65        50        40           34         30

5              45        35        29           24         21

6              31        25        20           17         15

7              10        10        10           10         10
</TABLE>

<PAGE>

                                      -54-
                        Association of American Railroads
                              Communication Manual
Part 1-B-1                                                                  1989
--------------------------------------------------------------------------------

                                   Appendix F
                Recommended Maximum Number of Wires Which can be
             Supported by Poles of Various Classes Without Head Guys
<TABLE>
<CAPTION>
                                   Ultimate                       Class of Pole
    Wire              Diameter     Strength
Gage & Material       (Inches)     (Pounds)       1      2      3      4      5     6      7

                                                           Heavy Loading District
                                                           ----------------------
<S>                    <C>          <C>          <C>    <C>    <C>    <C>    <C>   <C>    <C>
10 AWG Copper          0.102          530         11     9      7      6      4     3      2

 9 AWG Copper          0.114          660          8     7      6      4      3     3      2

 8 AWG Copper          0.128          826          7     5      4      4      3     2      1

 8 BWG Copper          0.165        1,325          4     3      3      2      2     1      1

10 BWG Steel           0.134        1,200          4     4      3      2      2     1      1

 8 BWG Steel           0.165        1,710          3     2      2      2      1     1      0
</TABLE>

<TABLE>
<CAPTION>
                                   Ultimate                       Class of Pole
    Wire              Diameter     Strength
Gage & Material       (Inches)     (Pounds)       1      2      3      4      5     6      7

                                                           Medium Loading District
                                                           -----------------------
<S>                    <C>          <C>          <C>    <C>    <C>    <C>  <C>    <C>    <C>
10 AWG Copper          0.102          530         16     13     11    8     6       5     4

 9 AWG Copper          0.114          660         13     11      9    6     5       4     3

 8 AWG copper          0.128          826         10      8      7    5     4       3     2

 8 BWG Copper          0.165        1,325          5      5      4    3     3       2     1

10 BWG Steel           0.134        1,200          7      6      5    4     4       2     1

 8 BWG Steel           0.165        1,700          5      4      3    2     2       2     1
</TABLE>

    Where wires of other sizes or having  other  ultimate  strengths,  as in the
case of various grades of steel, are used, the number of wires can be determined
by  selecting  the wire in the table which has the nearest to the same  ultimate
strength as the wire under consideration.

<PAGE>

                                      -55-
                        Association of American Railroads
                              Communication Manual
1989                                                                  Part 1-B-1
--------------------------------------------------------------------------------

                             Appendix F (Continued)

<TABLE>
<CAPTION>
                                   Ultimate                       Class of Pole
    Wire              Diameter     Strength
Gage & Material       (Inches)     (Pounds)       1      2      3      4      5     6      7

                                                            Light Loading District
                                                            ----------------------
<S>                    <C>       <C>             <C>    <C>    <C>    <C>    <C>   <C>    <C>
10 AWG Copper          0.102        530           24     21     16     13     10    8      6

 9 AWG Copper          0.114        660           20     16     13     10      8    7      5

 8 AWG Copper          0.128        826           16     13     10      8      6    5      4

 8 BWG Copper          0.165      1,325           10      8      6      5      4    3      2

10 BWG Steel           0.134      1,200           10      8      7      5      4    3      2

 8 BWG Steel           0.165      1,710            7      6      5      4      3    2      2
</TABLE>

     Where wires of other sizes or having other  ultimate  strengths,  as in the
case of various grades of steel, are used, the number of wires can be determined
by  selecting  the wire in the table which has the nearest to the same  ultimate
strength as the wire under consideration.
<PAGE>
                                      -56-
                        Association of American Railroads
                              Communication Manual
Part 1-B-1                                                                  1989
--------------------------------------------------------------------------------

                                   Appendix G
       Recommended Ground Line Circumference of Poles of Various Classes
                     and Species which have Deteriorated to
                       Two-Thirds their Strength when New

   Northern White Cedar and Other Species of Poles Having A Fiber Strength of
         3,600 Pounds per Square Inch. (See Group No. 1 in Appendix H)

<TABLE>
<CAPTION>
Length                                                              Class of Pole
of Pole           1               2                 3                  4                    5                6                7
Feet                                                    Ground Line Circumference - Inches

<S>            <C>              <C>               <C>               <C>                    <C>            <C>               <C>
20             34-1/2           32-1/2            30-1/2            28-1/2                 26-1/2          24-1/2            22-1/2

25             38               35-1/2            33-1/2            30-1/2                 29              27                25

30             41-1/2           38-1/2            36                33-1/2                 31              28-1/2            27

35             44               41                38-1/2            35-1/2                 33              30                28

40             46-1/2           43-1/2            40-1/2            37-1/2                 35              32-1/2            ------

45             48-1/2           45-1/2            42-1/2            39-1/2                 36-1/2          ------            ------

50             50-1/2           47-1/2            44-1/2            41                     38              ------            ------

55             52-1/2           49                46                42-1/2                 39-1/2          ------            ------

60             54               51                47-1/2            44                     40-1/2          -------           ------
</TABLE>

<PAGE>
                                      -57-
                        Association of American Railroads
                              Communications Manual
1989                                                                 Part 1-B-1
-------------------------------------------------------------------------------

                             Appendix G (Continued)

   Western Red Cedar and Other Species of Poles Having a Fiber Strength of
         5,600 Pounds per Square Inch. (See Group No. 2 in Appendix H)

<TABLE>
<CAPTION>
Length                                                          Class of Pole
of Pole       1                 2                 3                   4                      5               6                7
Feet                                                 Ground Line Circumference - Inches

<S>          <C>                <C>               <C>               <C>                    <C>               <C>           <C>
20           30                 28                26-1/2            24-1/2                 22-1/2            21            19-1/2

25           32-1/2             31                29                26-1/2                 25                23            21-1/2

30           35-1/2             33-1/2            31                28-1/2                 26-1/2            25            23-1/2

35           37-1/2             35-1/2            33-1/2            30-1/2                 28-1/2            26-1/2        24-1/2

40           40                 37-1/2            35                32-1/2                 30-1/2            27-1/2        ------

45           42                 39                37                34                     31-1/2            ------        ------

50           43-1/2             41                38-1/2            35                     32-1/2            ------        ------

55           45-1/2             42-1/2            39-1/2            37                     34                ------        ------

60           46-1/2             43-1/2            41                38                     -------           -------       ------

65           48-1/2             45                42                39-1/2                 -------           -------       ------

70           50                 46-1/2            43-1/2            40-1/2                 -------           -------       ------

75           50-1/2             47-1/2            44-1/2            41-1/2                 -------           -------       ------

80           52                 48-1/2            45-1/2            42                     -------           -------       ------

85           53                 49-1/2            46-1/2            -------                -------           -------       ------

90           56                 52-1/2            47-1/2            -------                -------           -------       ------
</TABLE>

<PAGE>

                                      -58-
                        Association of American Railroads
                              Communication Manual
Part 1-B-1                                                                  1989
--------------------------------------------------------------------------------

                             Appendix G (Continued)
      Recommended Ground Line Circumference of Poles of Various Classes
                    and Species which have Deteriorated to
                       Two-Thirds their Strength when New

        Chestnut Poles - Fiber Strength, 6,000 Pounds per Square Inch

<TABLE>
<CAPTION>
Length                                                         Class of Pole
of Pole       1                 2                 3                  4                     5                  6            7
Feet                                                  Ground Line Circumference - Inches

<S>          <C>                <C>               <C>               <C>                    <C>               <C>           <C>
20           29                 27-1/2            25-1/2            24                     22                20-1/2        19-1/2

25           32-1/2             30-1/2            28-1/2            26                     24-1/2            22-1/2        21

30           34-1/2             32-1/2            30-1/2            28-1/2                 26                24            22-1/2

35           37                 34-1/2            32-1/2            30-1/2                 28                25-1/2        24-1/2

40           39                 36-1/2            34-1/2            31-1/2                 29-1/2            27            25-1/2

45           41                 38-1/2            36                33-1/2                 31                28-1/2        26-1/2

50           42-1/2             40                37-1/2            34-1/2                 32-1/2            30            27-1/2

55           44                 41-1/2            38-1/2            36                     33-1/2            30-1/2        ------

60           45-1/2             43                40                37                     -------           -------       ------

65           47                 44                41                38-1/2                 -------           -------       ------

70           48                 45-1/2            -------           -------                -------           -------       ------
</TABLE>

<PAGE>
                                      -59-
                        Association of American Railroads
                              Communications Manual
1989                                                                 Part 1-B-1
-------------------------------------------------------------------------------

                             Appendix G (Continued)

        Lodgepole Pine - Fiber Strength of 6,600 Pounds per Square Inch

<TABLE>
<CAPTION>
Length                                                           Class of Pole
of Pole          1                 2                 3                4                    5                  6            7
Feet                                                         Ground Line Circumference - Inches

<S>          <C>                <C>               <C>               <C>                    <C>               <C>           <C>
20           28-1/2             26-1/2            25                23                     21-1/2            20            19

25           31-1/2             29-1/2            27-1/2            25                     24                21-1/2        20-1/2

30           33-1/2             31-1/2            29-1/2            27-1/2                 25-1/2            23-1/2        22

35           35-1/2             33-1/2            31-1/2            29-1/2                 27                24-1/2        23-1/2

40           38                 35-1/2            33-1/2            30-1/2                 28-1/2            26-1/2        24-1/2

45           39-1/2             37                35                32-1/2                 30                27-1/2        25-1/2

50           41-1/2             38-1/2            36-1/2            33-1/2                 31-1/2            29            27

55           42-1/2             40                37-1/2            35                     32-1/2            30            ------

60           44                 41-1/2            39                36                     33                30-1/2        ------

65           45-1/2             42-1/2            40                37                     34-1/2            -------       ------

70           47                 43-1/2            41                38                     35-1/2            -------       ------

75           48                 45                42                39                     -------           -------       ------

80           49                 46                43                40                     -------           -------       ------

85           50-1/2             47                44                -------                -------           -------       ------

90           53                 49-1/2            45                -------                -------           -------       ------
</TABLE>

<PAGE>

                                      -60-
                        Association of American Railroads
                              Communication Manual
Part 1-B-1                                                                  1989
--------------------------------------------------------------------------------

                                   Appendix G (Continued)
       Recommended Ground Line Circumference of Poles of Various Classes
                     and Species which have Deteriorated to
                       Two-Thirds their Strength when New

  Southern Pine, Douglas Fir and Other Species of Poles Having a Fiber Strength
        of 7,400 Pounds per Square Inch. (See Group No. 5 in Appendix H)

<TABLE>
<CAPTION>
Length                                                          Class of Pole
of Pole        1                 2                 3                  4                   5                  6            7
Feet                                                 Ground Line Circumference - Inches

<S>          <C>                <C>               <C>               <C>                    <C>               <C>           <C>
20           27-1/2             25-1/2            24                22-1/2                 20-1/2            19            18

25           30                 28                26-1/2            24                     23                21            19-1/2

30           32-1/2             30-1/2            28-1/2            26-1/2                 24-1/2            22-1/2        21

35           34-1/2             32                30-1/2            28-1/2                 26                24-1/2        22-1/2

40           36-1/2             34                32                29-1/2                 27-1/2            25-1/2        24

45           38-1/2             35-1/2            33-1/2            31                     29                26-1/2        25

50           40                 37                35                32-1/2                 30                28            26

55           41-1/2             39                36                33-1/2                 31                29            ------

60           42-1/2             40                37-1/2            35                     32                29-1/2        ------

65           44                 41                38-1/2            35-1/2                 ------            -------       ------

70           45                 42                39-1/2            36-1/2                 ------            -------       ------

75           46-1/2             43                40-1/2            ------                 -------           -------       ------

80           47                 44                41-1/2            ------                 -------           -------       ------

85           48                 45                ------            -------                -------           -------       ------

90           51                 48                ------            -------                -------           -------       ------
</TABLE>

<PAGE>
                                      -61-
                        Association of American Railroads
                              Communication Manual

1989                                                                  Part 1-B-1
--------------------------------------------------------------------------------

                                   Appendix H
             Recommended Ultimate Fiber Stress (Modulus of Rupture)
                        of Various Species of Wood Poles

<TABLE>
<CAPTION>
       Group No. 1                                  (Pounds per Square Inch)
       -----------
<S>                                                          <C>
       *Northern White Cedar                                  3,600
       Eastern White Cedar                                    3,600
       Red Wood                                               3,600

       Group No. 2
       -----------
       *Western Red Cedar                                     5,600
       Southern Red Cedar                                     5,600
       Washington Cedar                                       5,600
       Idaho Cedar                                            5,600
       Port Oxford Cedar                                      5,600
       Cypress                                                5,000

       Group No. 3
       -----------
       *Chestnut                                              6,000

       Group No. 4
       -----------
       *Lodgepole Pine                                        6,600

       Group No. 5
       -----------
       *Douglas Fir                                           7,400
       *Southern Pine, creosoted                              7,400
</TABLE>

   *American National Standards Institute (ANSI)
Standard 05.1-1987 (Specifications & Dimensions
of Wood Poles

<PAGE>

                                      -62-
                        Association of American Railroads
                              Communication Manual

Part 1-B-1                                                                 1989
-------------------------------------------------------------------------------

                                   Appendix J
           Recommended  Dimensions for New Poles of Various Species as Specified
           in ANSI Specifications 05.1 to 05.6, inclusive,
                  of the American National Standards Institute

                              Northern White Cedar

                 Fiber Strength, 3,600 Pounds per Square Inch.
                               From ANSI 05.1-1979

<TABLE>
<S>                           <C>      <C>       <C>       <C>        <C>        <C>        <C>
Class of Pole                  1        2         3         4          5          6          7
Minimum Top
Circumference (Inches)         27       25        23        21         19         17         15
</TABLE>

<TABLE>
<CAPTION>
Length    Ground
of        Line Distance                  Minimum Circumference at Six Feet from Butt
Pole      from Butt                                       (inches)
Feet      Feet
<S>      <C>                <C>        <C>       <C>       <C>       <C>         <C>        <C>
16        3-l/2              ----       ----      ----      ----       26.0       24.0       22.0

18        3-1/2              ----       ----      32.5      30.0       28.0       25.5       23.5

20        4                  39.5       37.0      34.0      31.5       29.0       27.0       25.0

22        4                  41.0       38.5      36.0      33.0       30.5       28.0       26.0

25        5                  43.5       41.0      38.0      35.5       32.5       30.0       28.0

30        5-1/2              47.5       44.5      41.5      38.5       35.5       33.0       30.5

35        6                  50.5       47.5      44.0      41.0       38.0       35.0       32.5

40        6                  53.5       50.0      46.5      43.5       40.0       37.0       ----

45        6-1/2              56.0       52.5      49.0      45.5       42.0       ----       ----

50        7                  58.5       55.0      51.5      47.5       44.0       ----       ----

55        7-1/2              61.0       57.5      53.5      49.5       46.0       ----       ----

60        8                  63.5       59.5      55.5      51.5       ----       ----       ----
</TABLE>

<PAGE>
                                      -63-
                        Association of American Railroads
                              Communication Manual

1989                                                                  Part 1-B-1
--------------------------------------------------------------------------------

                             Appendix J (Continued)

                               Western Red Cedar
                 Fiber Strength, 5,600 Pounds per Square Inch.
                               From ANSI 05.1-1979

<TABLE>
<S>                        <C>      <C>       <C>       <C>        <C>        <C>        <C>
Class of Pole               1        2         3         4          5          6          7
Minimum Top
Circumference (Inches)      27       25        23        21         19         17         15
</TABLE>

<TABLE>
<CAPTION>
Length    Ground
of        Line Distance               Minimum Circumference at Six Feet from Butt
Pole      from Butt                                    (Inches)
Feet      Feet
<S>      <C>               <C>      <C>       <C>       <C>        <C>        <C>        <C>
16        3-1/2             ----     ----      ----      ----       23.0       21.5       19.5

18        3-1/2             ----     ----      28.5      26.5       24.5       22.5       21.0

20        4                 34.5     32.0      30.0      28.0       25.5       23.5       22.0

22        4                 36.0     33.5      31.5      29.0       27.0       25.0       23.0

25        5                 38.0     35.5      33.0      30.5       28.5       26.0       24.5

30        5-1/2             41.0     38.5      35.5      33.0       30.5       28.5       26.5

35        6                 43.5     41.0      38.0      35.5       32.5       30.5       28.0

40        6                 46.0     43.5      40.5      37.5       34.5       32.0       ----

45        6-1/2             48.5     45.5      42.5      39.5       36.5       ----       ----

50        7                 50.5     47.5      44.5      41.0       38.0       ----       ----

55        7-1/2             52.5     49.5      46.0      42.5       39.5       ----       ----

60        8                 54.5     51.0      47.5      44.0       ----       ----       ----

65        8-1/2             56.0     52.5      49.0      45.5       ----       ----       ----

70        9                 57.5     54.0      50.5      47.0       ----       ----       ----

75        9-1/2             59.5     55.5      52.0      48.5       ----       ----       ----

80        10                61.0     57.0      53.5      49.5       ----       ----       ----

85        10-1/2            62.5     58.5      54.5      ----       ----       ----       ----

90        11                63.5     60.0      56.0      ----       ----       ----       ----
</TABLE>

<PAGE>
                                      -64-

                        Association of American Railroads
                              Communication Manual
 Part 1-B-1                                                                1989
--------------------------------------------------------------------------------

                             Appendix J (Continued)

           Recommended Dimensions for New Poles of Various Species as
            Specified in ANSI Specifications 05.1 to 05.6. inclusive,
                  of the American National Standards Institute

                                    Chestnut

                  Fiber Strength, 6,000 Pounds per Square Inch.
                               From ANSI 05.1-1979
<TABLE>
<CAPTION>

<S>                                      <C>       <C>        <C>        <C>        <C>        <C>       <C>
      Class of Pole                        1          2          3          4          5         6          7
      Minimum Top
      Circumference (inches)              27         25         23         21         19        17         15

</TABLE>

<TABLE>
<CAPTION>

      Length          Ground
      of              Line Distance             Minimum Circumference at Six Feet from Butt
      Pole            from Butt                                  (inches)
      Feet            Feet

     <S>              <C>                <C>        <C>       <C>        <C>       <C>       <C>         <C>
      16              3-1/2               -----      -----      -----      -----      22.5      21.0       19.5

      18              3-1/2               -----      -----      28.0       26         24.0      22.0       20.5

      20              4                   33.5       31.5       29.5       27.0       25.0      23.0       21.5

      22              4                   35.0       33.0       30.5       28.5       26.5      24.5       22.5

      25              5                   37.0       34.5       32.5       30.0       28.0      25.5       24.0

      30              5-1/2               40.0       37.5       35.0       32.5       30.0      28.0       26.0

      35              6                   42.5       40.0       37.5       34.5       32.0      30.0       27.5

      40              6                   45.0       42.5       39.5       36.5       34.0      31.5       29.5

      45              6-1/2               47.5       44.5       41.5       38.5       36.0      33.0       31.0

      50              7                   49.5       46.5       43.5       40.0       37.5      34.5       32.0

      55              7-1/2               51.5       48.5       45.0       42.0       39.0      36.0      -----

      60              8                   53.5       50.0       46.5       43.5      -----     -----      -----

      65              8-1/2               55.0       51.5       48.0       45.0      -----     -----      -----

      70              9                   56.5       53.0      -----      -----      -----     -----      -----

</TABLE>

<PAGE>

                                      -65-
                        Association of American Railroads
                              Communication Manual

1989                                                                  Part 1-B-1
--------------------------------------------------------------------------------
                             Appendix J (Continued)

                                 Lodgepole Pine

                 Fiber Strength, 6,600 Pounds per Square Inch
                               From ANSI 05.1-1979
<TABLE>
<CAPTION>

<S>                                 <C>       <C>       <C>    <C>      <C>       <C>   <C>
      Class of Pole                 1         2         3      4        5         6     7
      Minimum Top
      Circumference (Inches)        27        25        23     21       19        17    15

</TABLE>

<TABLE>
<CAPTION>

      Length       Ground
      of           Line Distance              Minimum Circumference at Six Feet from Butt
      Pole         from Butt                                    (inches)
      Feet         Feet

      <S>         <C>         <C>          <C>        <C>          <C>        <C>       <C>      <C>
      16           3-1/2       -----        -----       -----       -----      22.0      20.5     19.0

      18           3-1/2       -----        -----        27.5        25.5      23.5      21.5     20.0

      20           4            32.5         30.5        28.5        26.5      24.5      22.5     21.0

      22           4            34.0         32.0        30.0        27.5      25.5      23.5     22.0

      25           5            36.0         33.5        31.0        29.0      27.0      25.0     23.0

      30           5-1/2        39.0         36.5        34.0        31.5      29.0      27.0     25.0

      35           6            41.5         38.5        36.0        33.5      31.0      28.5     26.5

      40           6            44.0         41.0        38.0        35.5      33.0      30.5     28.0

      45           6-1/2        46.0         43.0        40.0      . 37.0      34.5      32.0     29.5

      50           7            48.0         45.0        42.0        39.0      36.0      33.5     31.0

      55           7-1/2        49.5         46.5        43.5        40.5      37.5      34.5     -----

      60           8            51.5         48.0        45.0        42.0      38.5      -----    -----

      65           8-1/2        53.0         49.5        46.0        43.0      -----     -----    -----

      70           9            54.5         51.0        47.5        -----     -----     -----    -----

      75           9-1/2        56.0         52.5       -----        -----     -----     -----    -----

</TABLE>

<PAGE>

                                      -66-
                        Association of American Railroads
                              Communication Manual
Part 1-B-1                                                                 1989
--------------------------------------------------------------------------------
                             Appendix J (Continued)

           Recommended  Dimensions for New Poles of Various Species as Specified
           in ANSI Specifications 05.1 to 05.6, inclusive,
                  of the American National Standards Institute

             Southern Pine (Creosoted) and Douglas Fir (Creosoted)

                  Fiber Strength, 7,400 Pounds per Square inch.
                               From ANSI 05.1-1979
<TABLE>
<CAPTION>

<S>                                       <C>    <C>   <C>   <C>   <C>   <C> <C>
Class of Pole                             1      2     3     4     5     6   7
Minimum Top
Circumference (inches)                    27     25    23    21    19    17  15

</TABLE>

<TABLE>
<CAPTION>

     Length        Ground
     of            Line Distance                        Minimum Circumference at Six Feet from Butt
     Pole          from Butt                                              (inches)
     Feet          Feet

     <S>          <C>                  <C>               <C>        <C>              <C>          <C>        <C>        <C>
     16            3-1/2                -----             -----      ------            -----      21.5       19.5       18.0

     18            3-1/2                -----             -----       26.5             24.5       22.5       21.0       19.0

     20            4                    31.5              29.5        27.5             25.5       23.5       22.0       20.0

     22            4                    33.0              31.0        29.0             26.5       24.5       23.0       21.0

     25            5                    34.5              32.5        30.0             28.0       26.0       24.0       22.0

     30            5-1/2                37.5              35.0        32.5             30.0       28.0       26.0       24.0

     35            6                    40.0              37.5        35.0             32.0       30.0       27.5       25.5

     40            6                    42.0              39.5        37.0             34.0       31.5       29.0       27.0

     45            6-1/2                44.0              41.5        38.5             36.0       33.0       30.5       28.5

     50            7                    46.0              43.0        40.0             37.5       34.5       32.0       29.5

     55            7-1/2                47.5              44.5        41.5             39.0       36.0       33.5       -----

     60            8                    49.5              46.0        43.0             40.0       37.0       34.5       -----

     65            8-1/2                51.0              47.5        44.5             41.5       38.5       -----      -----

     70            9                    52.5              49.0        46.0             42.5       39.5       -----      -----

     75            9-1/2                54.0              50.5        47.0             44.0        -----     -----      -----

     80            10                   55.0              51.5        48.5             45.0        -----     -----      -----

     85            10-1/2               56.5              53.0        49.5            -----        -----     -----      -----

     90            11                   57.5              54.0        50.5            -----        -----     -----      -----

</TABLE>
<PAGE>

                                      -67-
                        Association of American Railroads
                              Communication Manual

1989                                                                 Part 1-B-1
-------------------------------------------------------------------------------

                                   Appendix K
Here  is an  example  of  computation  of  clearance  between  power  wires  and
communication  wires where an  open-wire  communication  line  crosses  over the
tracks of a railroad and under an open-wire power line in the same span.

Assume the case in which the power line carries a single-phase, two-wire circuit
of 6,900 volts between wires, the wires attached to pin-type  insulators on wood
crossarms  and that each wire  consists of two  strands of solid  copper and one
strand of  copper-covered  steel,  the  overall  diameter  of which is 0.230 in.
Assume also that the crossing is located in the heavy loading  district and that
the length of the power line span concerned is 255 ft. The method of determining
the  required   clearance   between  the  lowest  power  wire  and  the  highest
communication wire consists of the following steps:

1.      Referring to Table E-2; the power line takes the  classification of open
        supply wires, 750 to 8,700 volts and the basic clearance is,  therefore,
        4 ft.

2.      Referring to Paragraph E-6(a); since the crossing is located in the
        heavy loading district, and the power line span exceeds 175 ft. in
        length, an increase in clearance is required. Referring to the second
        table in Subparagraph (1) of Paragraph E-6(a), the wire used in this
        example takes the classification of a "small conductor" since it is
        stranded, is other than all-copper and has an overall diameter less than
        0.275 in. Referring now to the first table in this same subparagraph, it
        will be seen that the amount of clearance increase for a "small
        conductor" in the heavy loading district is 0.30 ft. for each 10 ft. by
        which the span length exceeds 175 ft. The span length of 255 ft. exceeds
        175 ft. by 80 ft., so that the clearance increase is 8 multiplied by
        0.30 ft., or 2.4 ft. The total clearance is, therefore, the sum of 4 and
        2.4, or 6.4 ft.

3.      This clearance is applicable if the communication line crosses under
        the power line at or near the middle of the power line span where the
        sags of the power wires will be greatest when they are loaded with ice.
        Since the increased sag of the power wires caused by ice loading is less
        near the power poles than at mid-span, the clearance need not be as
        great as 6.4 ft. if the point where the communication line crosses under
        the power line (crossing point) is other than at the middle of the power
        line span. To take account of this permissible decrease, another step is
        necessary.

<PAGE>

                                      -68-
                        Association of American Railroads
                              Communication Manual

Part 1-B-1                                                                 1989
-------------------------------------------------------------------------------

4.       Referring to Table E-4; assume that the distance from the nearest
         power pole to the center line of the communication line is 51 ft. or
         20% of the length of the power line span. The corresponding reduction
         factor given in the table for a basic clearance of 4 ft. is 0.71.
         Multiplying this by 6.4 gives a net clearance of 4.5 ft. which is the
         clearance that should be provided under the conditions assumed. If
         this clearance had been less than 4 ft., the basic clearance of 4 ft.
         should have been provided in accordance with the requirements of
         Subparagraph (2) of Paragraph E-6 (a).

5.       The above assumes that the supply wires cross over the communication
         wires at a distance of more than 6 ft. horizontally from the nearest
         communication line pole. In accordance with Note (e) of Table E-2, if
         this horizontal distance is less than 6 ft., the basic clearance used
         in the above computations should be 6 ft. and the clearance under the
         conditions assumed above would be 8.4 ft. at mid-span or 6.6 ft. at
         the 20% point.

6.       The above takes care of the clearance increase required by Paragraph
         E-6 (a). The next step is to determine the further increase required by
         the voltage of the power circuit as given in Paragraph E-6 (b). In the
         case assumed, since the voltage is less than 50,000 volts, no increase
         is required and the clearance as determined in Step (d) or (e) above
         would meet the combined requirements of Paragraphs E-6 (a) and E-6(b).
         Had the voltage been 69,000 instead of 6,900 volts, the basic clearance
         from Table E-2 would have been 6 ft., the clearance due to span length
         would have been that determined in Step (e) above to which would be
         added 1/2 in. for each 1,000 volts that the voltage exceeds 50,000
         volts. This increase would amount to 9-1/2 in., or 0.8 ft., and the
         total clearance would have been 9.2 ft. at mid-span, or 7.4 ft. at the
         20% point.

7.       The final factor which enters into the determination of the clearance
         is the method of support of the power conductors as given in Paragraph
         E-6(c). The object of this clearance increase is to insure that a total
         clearance is provided such that at least the basic clearance called for
         in Table E-2 will be maintained in the event that the power conductor
         is broken in the span adjacent to the crossing in those situations
         where the conductor is more or less rigidly supported at one crossing
         structure and at the other crossing structure is supported by
         suspension or other type insulators which are free to swing and thereby
         permit a large increase in the sag of the power wire in the crossing
         span. Where the power conductor is supported by pin-type insulators at
         both crossing structures, as assumed

<PAGE>

                                      -69-
                        Association of American Railroads
                              Communication Manual

1989                                                                 Part 1-B-1
-------------------------------------------------------------------------------

         in the  example in this  appendix,  this  effect is not  present and no
         increase in clearance is required for this item.  The same result would
         have obtained had the power conductor been supported by suspension-type
         insulators at both crossing  structures.  This effect is important only
         where the method of  supporting  the power  conductor is such as not to
         permit the same  freedom of movement of the  conductor  at one crossing
         structure  as at the other.  The  determination  of the increase in sag
         which would  result from such  dissimilar  supporting  arrangements  is
         complicated and since it is a type of construction which will rarely be
         encountered where this specification is involved,  it will generally be
         found  preferable to obtain the  information  from the engineers of the
         company owning the power line rather than attempt to compute it.
<PAGE>

                                      -70-
                        Association of American Railroads
                              Communication Manual

Part 1-B-1                                                                  1989
--------------------------------------------------------------------------------

                                   Appendix L
           Recommended Typical Communication Line Crossing Data Sheet

     A data sheet of the type illustrated below shall be filled out by the party
planning to erect wires across the railroad and forwarded to the  Superintendent
of Communications or other designated officer,  together with the plan and other
pertinent information, as a part of the notice required by Paragraph C-1.

Name of party desiring crossing...............................................
Location of proposed crossing.................................................

 1. Poles - Kind of timber - Treated or untreated.............................
 2. Poles - Class and length..................................................
 3. Poles - Depth of setting..................................................
 4. Poles - Poles - Setting - Kind of earth, i.e., rock, firm
    earth or swampy ground....................................................
 5. Guys, Side - Number, kind and size........................................
 6. Guys, Side - Nominal breaking strength....................................
 7. Guys, Head - Number, kind and size........................................
 8. Guys, Head - Nominal breaking strength....................................
 9. Guy Clamps - Kind and size................................................
10. Guy Clamps - Number at pole end...........................................
11. Guy Clamps - Number at guy rod end........................................
12. Guy Rods - Kind and size..................................................
13. Anchors - Kind and size...................................................
14. Anchors - Depth of setting................................................
15. Crossarms - Number, immediate construction................................
16. Crossarms - Number, future construction...................................
17. Crossarms - Material......................................................
18. Crossarms - Size..........................................................
19. Crossarms - Number of pins per arm........................................
20. Pins - Material...........................................................
21. Pins - Type...............................................................
22. Pins - Size...............................................................
23. Pins - If metal, state if galvanized......................................
24. Insulators - Material.....................................................
25. Insulators - Type.........................................................
26. Wires - Material and number...............................................
27. Wires - Size and gage.....................................................
28. Wires, supply, involved in crossing - Voltage.............................
29. Suspension Strand - Kind and size.........................................
30. Suspension Strand - Nominal breaking strength.............................
31. Suspension Strand Attachment - Kind and size of through
    bolt......................................................................
32. Suspension Strand Attachment - Type of suspension clamp...................

<PAGE>

                                      -71-
                        Association of American Railroads
                              Communication Manual

1989                                                                  Part 1-B-1
--------------------------------------------------------------------------------

33. Suspension Strand Attachment - Type of safety strap.........................
34. Suspension Strand Attachment - Kind and size of safety
    strap bolt..................................................................
35. Suspension Strand Attachment - Type of reinforcing links....................
36. Suspension Strand Attachment - Kind and size of reinforcing
    link bolts..................................................................
37. Cable, if any, diameter, inches.............................................
38. Cable, if any, weight, pounds, per foot.....................................
39. Cable Rings - Material......................................................
40. Cable Rings - Type..........................................................
41. Cable Rings - Spacing.......................................................
42. Cable Lashing Wires, Size...................................................
<PAGE>
                                      -72-
                        Association of American Railroads
                              Communications Manual

Part 1-B-1                                                                  1989
--------------------------------------------------------------------------------

Figure 1B1-1: Typical Drawing for Communication Lines Crossing over Railroads

        [COMMUNICATION LINES CROSSING OVER RAILROADS DIAGRAM]
<PAGE>
                                      -73-
                        Association of American Railroads
                              Communication Manual

1989                                                                  Part 1-B-1
--------------------------------------------------------------------------------

Figure 1B1-2: Guy Lead and Height and their Ratio

                         [GUY LEAD AND HEIGHT DIAGRAM]
<PAGE>
                                      -74-
                        Association of American Railroads
                              Communication Manual

Part 1-B-1                                                                  1989
--------------------------------------------------------------------------------

Figure 1B1-3: Typical Arrangement of Underground Crossing

                 [ARRANGEMENT OF UNDERGROUND CROSSING DIAGRAM]
<PAGE>
                                      -75-
                        Association of American Railroads
                              Communication Manual

1989                                                                  Part 1-B-1
--------------------------------------------------------------------------------

Figure 1B1-4:  Typical Drawing for Communication Line Crossing Under Bridges

              [COMMUNICATION LINE CROSSING UNDER BRIDGES DIAGRAM]
<PAGE>
                                      -76-
                        Association of American Railroads
                              Communication Manual
Part 1-B-1                                                                 1989
-------------------------------------------------------------------------------

Figure 1B1-5:  Typical Arrangement of Conduits for Underground Crossing

                  [CONDUITS FOR UNDERGROUND CROSSING DIAGRAM]
<PAGE>

                                    EXHIBIT G

                        SPECIFICATION FOR THE ATTACHMENT
                          OF CABLES TO RAILROAD BRIDGES

I.   AVOIDANCE OF ATTACHMENTS

     The cable system preferably should be so graded that it will be unnecessary
     to make attachments to railroad bridge structures.

II.  ATTACHMENTS TO FIXED BRIDGES

     Unless separate  written approval of the Railroad's Chief Engineer has been
     obtained,  cable will be encased in steel conduit, and attachments to steel
     bridges  shall be made with  devices  that do not require  the  drilling or
     cutting of the bridge  structure or the removal of rivets.  Attachments  to
     each individual  bridge shall be in accordance with drawings prepared by or
     for Utility and approved by the Railroad.  Typical attachment  drawings may
     be prepared for those types of bridges whose design and  construction  lend
     themselves  to repetition of  attachment  method and detail.  However,  the
     Railroad  shall make final  determination  as to the  applicability  of any
     typical attachment drawings to an individual bridge.

III. ATTACHMENTS TO MOVABLE BRIDGES

     All attachments to movable bridges require separate written approval of the
     Railroad's Chief Engineer and will be made in accordance with  requirements
     prescribed for that particular bridge by the Railroad.

IV.  TEMPORARY RELOCATION OF ATTACHMENTS

     Temporary  relocation  of cable  systems  attached to bridges  will be made
     promptly  and  without  cost to Railroad  when  necessary  for  Railroad to
     perform  bridge  maintenance.  Notification  will not be less  than 30 days
     prior  to  date  that  relocation  must  be  complete,  except  in  case of
     emergency.  The  attachment  requirements  set forth by the  Railroad  will
     locate the attachment,  to the extent possible, such that the occurrence of
     such temporary relocations will be minimized.

V.   NEW BRIDGES

     In the event that new  railroad  bridges  are to be  constructed  along the
     right-of-way  occupied by Utility  and Utility  desires to locate its cable
     facility on such bridges,  provision for Utility cable will be incorporated
     into the  bridge  design.  Costs of  design,  construction,  and  materials
     attributable solely to Utility's use of the structure,  as well as costs of
     any   temporary   relocation   of  Utility's   facilities   during   bridge
     construction, will be paid by Utility.

<PAGE>

                                    EXHIBIT H

                        EMERGENCY AND DISASTER RESPONSES

In the event of an  emergency  or  disaster  which  results in actual  damage to
Facilities or System or to Railroad's  facilities  or  operations,  or creates a
situation  wherein  it is  reasonably  possible  that  such  damage  may  occur,
immediate contact shall be established between Railroad's Operations Center, and
applicable  division  personnel,  and Utility's  Operation Center and applicable
Area  Representatives.  Detailed procedures  effectuating the above notification
shall be mutually established.

Railroad and Utility will fully  cooperate with each other and coordinate  their
efforts to jointly and severally  restore operation of their respective rail and
communication systems, with each being solely responsible for all costs incurred
in repairing its own facilities.  In the event such  cooperation  results in one
party  incurring  costs that are for the  benefit of the other  (e.g.,  Railroad
providing railroad equipment to Utility), such costs shall be subsequently fully
reimbursed.

Utility  will  maintain  emergency  material  and repair kits at various  points
throughout its System.

Railroad  shall have the right to establish  priorities for making repairs which
impact upon rail operations,  but shall permit Utility to move forward in making
repairs to Utility's  System or  Facilities  when to do so would not impair rail
operations.

<PAGE>
                                                                       EXHIBIT I

                                       CSX
                                 TRANSPORTATION

Specifications for crossings of wires or cables of Telegraph, Telephone, Signal,
        and other Circuits of Similar character over CSXT Rights of Way,
                 Tracks, or Lines of wires of the same classes.

1.  PURPOSE.

     The purpose of these specifications is to describe the general requirements
of construction and maintenance of  communication  lines crossing the tracks and
associated parallel communication lines of railroads. They are based on National
Electrical Safety Code and A.A.R.  communications section.  Specification 1 3 1.
For further details, see complete specifications.

     Wires covered by these  specifications  shall not carry more than 400 volts
to ground.

2.  DRAWINGS.

     Complete  drawings shall be furnished in duplicate  before  construction is
commenced.  These  drawings  shall  show the  general  plan of the right of way,
tracks and wires to be crossed  and the  construction  proposed,  including  the
locations of the poles  supporting the crossing span and the adjoining  spans on
either side of the crossing  span, the number,  kind and size of wires,  and the
proposed clearances of the existing tracks and wires.

3.  LOCATION OF POLES.

     Spans crossing railroad rights of way,  preferably should be supported upon
poles placed outside of the right of way.

     The crossing span shall, where practicable, not exceed 175 ft. in the heavy
loading  district,  250 ft. in the medium loading  district,  and 350 ft. in the
light loading district.  Where practicable,  the adjacent spans shall not exceed
the length of the  crossing by more than 50%.  Wherever  practicable,  the poles
supporting  the crossing span and the adjoining  span on each side thereof shall
be in a straight line.

4.  CLEARANCES.

     General.  The condition under which all clearances are specified are
60(degrees)F. and no wind. Clearances shall be measured between the nearest
parts of the objects concerned. The clearances required by this section shall
be maintained at not less than the specified values.

     Side  Clearance  From Rails.  Poles or towers  supporting the crossing span
shall,  where  practicable,  be so located  as to  provide a minimum  horizontal
clearance  of twelve (12) feet from the nearest  track rail (except at sidings a
clearance  of not  less  than  eight  (8)  feet may be  allowed)  and a  minimum
horizontal  clearance of eight (8) feet  between the nearest  track rail and any
crossarm, guy, or other attachments. Where it is impracticable or undesirable to
provide  these  clearances,  they  may be  reduced  if the  approval  of CSXT is
obtained.  Where necessary to provide safe operating  conditions,  which require
uninterrupted view along the tracks for signals,  signs, etc., the parties shall
cooperate to provide greater clearances than those specified above.

     Vertical  Clearance Above Rails for Fixed Supports.  The vertical clearance
between  the lowest  wire,  guy,  or cable and the top of rail shall not be less
than the Table below:

                         VERTICAL CLEARANCE ABOVE RAILS

<TABLE>
<CAPTION>
                                   Vertical Clearance
                                        in Feet
                                   ------------------

<S>                                       <C>
For wires                                  27

For guys or cables
  carried on suspension
  strands                                  25

</TABLE>

Vertical Clearances Between Wires Not on the Same Supporting Structures.

     The  vertical  clearances  between  conductors  of the  crossing  span  and
conductors  of  other  lines  shall be not less  than  the  values  shown in the
following Table.
<PAGE>
                   Minimum Vertical Clearance in Feet Between
                         Wires not on the same structure

     (All     voltages are between wires,  except where otherwise  stated or for
              trolley contact wires where voltages are to ground.)

<TABLE>
<CAPTION>
                                                            Nature of Wires at High Level

                                                                   Open supply of wires,
                                                                   0-750 volts, supply                                      Guys,
                                             Communication         cables, all voltages                                  span wires,
         Nature of                           wires, cables          having effectively             Open supply            lightning
       wires crossed                         and suspension        grounded metal sheath            wires and            protection
            over                                 strand            or suspension strand            service drops            wires

                                                                                                750 to     8,700 to
                                                                 Line wires        Service       8,700      50,000
                                                                 and cables         drops        Volts       Volts
<S>                                             <C>                 <C>             <C>          <C>        <C>              <C>

Communication
  wires, cables and
  suspension strand                               2                   4               2            4           6               2

Guys and span wires,
  lightning protection wires,
  supply service drops of
  0 to 750 volts                                  4                   2               2             2          4               2

</TABLE>

                               LOADING ASSUMPTIONS

     Three  degrees of severity are  recognized  on the Railroad for the loading
due to weather conditions and are designated,  respectively,  as Heavy,  Medium,
and Light Loading:

     (a)  Heavy Loading Territory:  All lines north of Virginia-North Carolina
          State Line.
     (b)  Medium Loading Territory:  All lines south of Virginia-North Carolina
          State Line and north of a parallel of latitude passing through
          Charleston, S.C., Fairfax, S.C., Woodbury, Ga, and LaGrange, Ga.
     (c)  Light Loading Territory:  All lines south of territory designated in
          (b) above.

5.  POLES

     Material.  Wood poles shall be of suitable and selected timber free from
observable defects that would decrease the strength of durability.

     Sizes.  Creosoted Southern Pine--Poles shall be of a size not less than the
class specified in Table for the corresponding  number of wires carried. If guys
are  omitted,  poles must be of  sufficient  strength  to meet the  requirements
specified in paragraph Q-9 of A.A.R. Specification 131.

                                  MINIMUM SIZES

<TABLE>
<CAPTION>
                                    Over 40 wires              21 to 40 wires           11 to 20 wires       10 wires or less
<S>                                 <C>                        <C>                     <C>                   <C>

Medium Loading Territory
Minimum top Cir. (in.)               21 (class 4)               19 (class 5)             17 (class 6)          15 (Class 7)
Light Loading Territory
Minimum Top Cir. (in.)               19 (class 5)               17 (class 6)             17 (class 6)          15 (Class 7)

</TABLE>

     Gains.  Gains shall not be cut to a depth of more than one-half inch.

     Setting.  Following Table specifies the minimum depth of setting for
unguyed poles in average soil and in rock.

                   MINIMUM DEPTH OF SETTING FOR UNGUYED POLES

<TABLE>
<CAPTION>
Length of       Depth in feet in average soil for different classes of poles     Depth in feet in
 pole in                                                                           Rock For all
   feet               Class 4          Class 5 and 6         Class 7                  classes
<S>                 <C>                  <C>                <C>                      <C>

    16                   --                4                  3 3/4                    3
    18                   --                4 1/4              4                        3 1/4
    20                 4 1/2               4 1/4              4                        3 1/4
    22                 4 3/4               4 1/2              4 1/4                    3 1/2
    25                 5 1/4               4 3/4              4 1/2                    3 3/4
    27                 5 1/2               5                  4 3/4                    4
    30                 5 3/4               5 1/4              5                        4 1/4
    35                 6                   5 1/2              5 1/4                    4 1/2
    40                 6 1/4               5 3/4              5 1/2                    4 3/4
    45                 6 1/2               6                  5 3/4                    5
    50                 6 3/4               6 1/4              6                        5 1/4
    55                 7                   6 1/2                --                     5 1/2
    60                 7 1/4               6 3/4                --                     5 3/4

</TABLE>

     Where soil  conditions  are such that the above  depths of setting will not
develop the strength of the pole,  the pole shall be set to an additional  depth
or other means used to properly secure the pole.

     Spliced Poles.  Spliced poles shall not be used to support the crossing
span.
<PAGE>
6.  CROSSARMS AND BRACKETS.

     Wood crossarms supporting the crossing span shall be of fir, treated yellow
pine or other suitable  timber.  They shall have a nominal  cross-section on not
less than the value given in Table below.

                          DIMENSIONS OF WOOD CROSSARMS

<TABLE>
<CAPTION>

 Number                    Nominal Length                  Nominal Cross-Section
of wires               (Feet)        (Inches)                    (Inches)
<S>                    <C>           <C>                    <C>
    2                     1            4 1/2                  2 5/16 by 3 5/16
    4                     3            4 1/2                  2 5/16 by 3 5/16
    6                     6            0                      2 3/4  by 3 3/4
   10                     8            6                      2 3/4  by 3 3/4
   10                    10            0                      3      by 4
   12*                   10            0                      3 1/4  by 4 1/4
   16**                  10            0                      3 1/4  by 4 1/4

</TABLE>

 * Where  crossarms  are bored  for 1/2 inch  steel  pine,  3 inch by 4 1/4 inch
   crossarms may be used.
** Permitted in medium and light loading districts only.

     Galvanized or painted iron or steel crossarms of strength equal to those of
the wood crossarms specified in above Table may be used.

     Double  crossarms shall be provided on crossing poles and shall be attached
to the pole by means of a 5/8 inch crossarm bolt.  Double  crossarms longer than
two-pin  shall be  equipped  with double  arming  bolts,  or spacing  blocks and
crossarm  bolts,  at a point near each end of the crossarms.  Each wire shall be
attached to each insulator of its pair upon the double arm.

     Wood pole  brackets  may only be used at  crossings  over minor  tracks and
shall be in duplicate so as to afford two points of support for each conductor.

7.  HARDWARE.

     All pole line hardware shall be galvanized.

8.  PINS.

     Insulator  pins shall have  strength  sufficient  to withstand the loads to
which they may be  subjected.  Steel or iron pins shall have a diameter of shank
not less than 1/2 inch.  Wood pins shall be sound and  straight  grained  with a
diameter of shank not less than 1 3/4 inches.

9.  INSULATORS.

     Each insulator  shall be of such pattern,  design and material  that,  when
mounted on its pin, it will withstand,  without injury, and without being pulled
off the pin, the ultimate strength of the conductor which it supports.

10.  CONDUCTORS.

     Conductors  shall be of material or combination of materials which will not
corrode excessively under the prevailing conditions.

     Conductors of material  other than those  specified in Table below shall be
of such size and so erected as to have mechanical strength not less than that of
the sizes of copper conductors specified.

     The  minimum  allowable  sizes  of  conductors  in a span  crossing  over a
railroad  which does not in the same span also cross over supply  conductors  in
excess of 750 volts to ground, shall be as given in following Table.

                               MINIMUM WIRE SIZES

<TABLE>
<CAPTION>
                                                                    Spans exceeding 125 feet up to
  Conductor                      Spans 125 feet or less                     150 feet (Note)

                               Gage          Diameter Inches          Gage        Diameter Inches
<S>                          <C>                <C>                 <C>              <C>
  Copper, Hard Drawn          10 AWG              0.102               9 AWG            0.114

  Steel Galvanized:
  In general                  10 BWG              0.134               8 BWG            0.165

  In rural districts
  or arid regions             12 BWG              0.109              10 BWG            0.134

</TABLE>

     NOTE:--If Spans in excess of 150 ft. are necessary,  the size of conductors
specified  above,  or the  sags  of the  conductors,  shall  be  correspondingly
increased.

11.  GUYS.

     Poles  supporting the crossing span shall be side guyed in both directions,
if  practicable,  and shall be head guyed away from the  crossing  span when the
construction  of the crossing span places undue stress on crossing  poles.  Guys
shall be of galvanized steel wire or stranded steel cable.
<PAGE>
12.  SUSPENSION STRAND.

     Material.  Suspension strands shall be of galvanized steel or other
material that will not corrode excessively under the prevailing conditions.

     Size. For spans of 150 feet or less, the following  Table gives the minimum
sizes of suspension  strand to be used for supporting  different sizes of aerial
cable.

                       MINIMUM SIZES OF SUSPENSION STRAND

<TABLE>
<CAPTION>

Weights of cable in                     Suspension Strand (Nominal Ultimate
 pounds per foot                                Strength in Pounds)
<S>                                                 <C>
Less than 2.25                                         6.000
2.25 to 5                                             10.000
Exceeding 5 and less than 8.5                         16.000

</TABLE>

13.  INSPECTION.

     The construction shall be subject to the inspection of the railroad company
and  shall  comply  with the  requirements  of these  specifications.  Defective
material shall be rejected and replaced with acceptable material.

14.  MAINTENANCE.

     The crossing shall be maintained in safe condition.  The poles,  crossarms,
insulators,  guys, wires, and other parts and materials used in the structure of
the crossing shall be periodically inspected,  and all defects shall be promptly
repaired by the owner of the line.  The guys and anchors  shall be maintained so
that the guys are kept taut and serve the purpose  for which they are  intended.
The line wires  shall be kept to the proper  sag.  Underbrush,  grass,  or other
inflammable material shall be kept removed by the crossing owner, from the poles
for a sufficient distance to reduce the fire hazard to the minimum.

<PAGE>

                                    EXHIBIT J

CSX TRANSPORTATION - EB2 PUBLICATION SCHEDULE OF LABOR OVERHEAD RATES USED FOR
BILLING OUTSIDE PARTIES OTHER THAN GOVERNMENT AGENCIES AND RAILROADS

ITEM 1. SUMMARY OF LABOR SURCHARGES TO BE APPLIED TO DIRECT LABOR EFFECTIVE
1/1/97:

<TABLE>
<CAPTION>
                                                                                                                          NON-
DESCRIPTION                            MOW              SIG            M OF E           TRANS           GOB/SS          CONTRACT
- -----------                            ----             ---            ------           -----           ------          --------
<S>                                <C>               <C>            <C>              <C>             <C>             <C>
Vacation and other                     8.35%            6.42%           7.59%           10.60%          12.82%            5.74%
Holiday                                3.97%            3.65%           3.87%            0.69%           3.46%            0.00%
RRUI                                  27.01%           26.48%          26.48%           24.76%          26.64%           18.46%
Suppl. Annuity Tax                     1.86%            1.64%           1.74%            1.60%           1.66%            0.00%
Suppl. Sick Ins.                       1.07%            0.88%           1.21%            0.00%           0.00%            0.00%
Health & Welfare                      16.13%           15.81%          16.01%           15.99%          16.70%            7.44%
Small tools                            2.00%            2.00%           0.00%            0.00%           0.00%            0.00%
Safety/Training                        4.00%            4.00%           4.00%            3.00%           0.00%            0.00%
Supervision                           67.10%           61.33%          32.23%           31.98%          19.32%            0.00%
Force Acct. Ins.                      23.00%           23.00%          23.00%           23.00%           0.00%            0.00%
Funded Pension                         0.00%            0.00%           0.00%            0.00%           0.00%            7.36%

Composite Rate                       154.49%          145.21%         116.13%          111.62%          80.60%           39.00%
</TABLE>

*  Other  included  sick  leave,   personal  leave,   jury  duty,   bereavement,
compassionate leave.

Note: The rates above do not include the surcharge of 24.6% for Signal Shop
Labor

<PAGE>

                                    EXHIBIT K

                 ARBITRATION OR MEDIATION RESOLUTION PROCEDURES

     A. In the event of any  controversy,  claim or dispute  between Utility and
Railroad  referred  to  arbitration  or  mediation  pursuant  to this  Agreement
(hereinafter  referred to as "Dispute"),  the parties agree to use the procedure
herein.

     B. The parties  agree that the only  circumstances  in which a Dispute will
not be subject to the  provisions of this Exhibit are: (i) where a party makes a
good  faith  determination  that a breach of the terms of the  Agreement  by the
other party will cause  irreparable  damage to the complaining party unless such
breach is enjoined by a court of competent jurisdiction; or (ii) where one party
has been  made a party  to a  judicial  proceeding,  and the  other  party is an
appropriate additional party to such proceeding. Breach of the Agreement will be
deemed to cause irreparable damage if it is incapable of adequate redress if not
promptly enjoined, so that a temporary or preliminary restraining order or other
immediate  injunctive  relief is the only adequate remedy.  If one party files a
pleading seeking injunctive relief, and such pleading is challenged by the other
party, and the injunctive  relief sought is not awarded in substantial part, the
party filing the pleading seeking immediate  injunctive relief shall pay all the
costs,  attorneys' fees and expenses of the party  successfully  challenging the
pleading.

          1.  Notice  of  Arbitration  or  Mediation.  If the  parties  have not
succeeded in  negotiating a resolution of a Dispute  within thirty (30) business
days  following  the  Trigger  Notice  (which  period may be  extended by mutual
agreement of the parties),  arbitration  or mediation  shall be conducted as set
forth below. The Trigger Notice shall specify in reasonable detail the nature of
the Dispute and comply with the procedures set forth in Paragraph 2 or Paragraph
3.

          2.  Arbitration   Procedures.   Arbitration   shall  be  conducted  in
accordance with the then-current  CPR  Non-Administered  Arbitration  Rules (the
"Rules").  The  provisions of the Agreement  shall control if they conflict with
the Rules.  Arbitration shall be before three (3) arbitrators.  Each party shall
appoint one (1)  arbitrator  within  fifteen (15)  business  days  following the
commencement  of the  procedure by Trigger  Notice  above  (which  period may be
extended by mutual agreement). Within fifteen (15) business days following their
appointment,  the two (2)  arbitrators  so  selected  shall  appoint  the  third
arbitrator,  who shall serve as Chairman of the arbitration  panel. The Chairman
shall be an  attorney  at law  admitted  to  practice  in the United  States and
experienced  in  arbitration.   The  arbitrators   shall  determine   issues  of
arbitrability  in  accordance  with federal  law,  but may not limit,  expand or
otherwise  modify the terms of the Agreement.  Arbitration  shall be governed by
the United States Arbitration Act, 9 U.S.C. Sections 1-16, and judgment upon the
award may be entered by any court having jurisdiction thereof. In addition,  the
following shall apply with respect to any arbitration conducted pursuant to this
Appendix:

             (a)  Costs/Fees.  If either party submits a matter to  arbitration,
     and  provided  that  one  of the  parties  prevails  over  the  other,  the
     arbitrators  may  award  such  prevailing  party  an  amount  equal  to its
     reasonable   attorneys'  fees  and  expenses,   experts'  fees,  and  other
     reasonable  costs and expenses that it has incurred in connection  with the
     arbitration.  Otherwise,  each party shall be responsible  for its own fees
     and expenses.

             (b) Remedies.  Upon a showing of material  breach of the Agreement,
     the  arbitrators  are  empowered to award actual or  compensatory  damages,
     unless prohibited by applicable state law or the Agreement. The arbitrators
     may not award  consequential,  punitive  or multiple  damages;  the parties
     expressly waiving any entitlement to such relief.

             (c) Location of Arbitration. The place of the arbitration shall be
     Jacksonville, Florida.

             (d)  Confidentiality.   The  parties,  their  representatives,  the
     arbitrators and any other  participants in the arbitration  shall treat all
     aspects of the  arbitration as  confidential,  including but not limited to
     all documents,  testimony,  information or other things produced, inspected
     or otherwise

                                        1
<PAGE>

     made available in connection with the arbitration.  Neither the parties nor
     the  arbitrators  may  disclose  the  existence,  content or results of the
     arbitration,   except  as  necessary  to  comply  with  applicable  law  or
     regulatory  requirements.  Before  making  any such  disclosure,  the party
     seeking  disclosure shall give written notice to the other party, and shall
     afford such party a reasonable opportunity to protect its interests.  In no
     event  shall a  disclosure  necessary  to comply  with legal or  regulatory
     requirements  be deemed to waive the  confidential  nature of the disclosed
     information.

             (e) Discovery.  The  arbitrators  shall permit and facilitate  such
     discovery in accordance with Federal Rules of Evidence and Federal Rules of
     Civil  Procedure,   as  they  shall  determine  is  appropriate  under  the
     circumstances,  taking into account the needs of the parties, the relevance
     of  the  requested   discovery  to  the  matter  in  controversy   and  the
     desirability  of  making  discovery  expeditious  and  cost-effective.  The
     parties  agree  that the  following  information  shall not be  subject  to
     discovery  in  connection  with  the  arbitration  unless  it is  expressly
     authorized by the  arbitrators  upon a showing of  substantial  need by the
     party seeking discovery:  (i) information relating to Railroad's agreements
     with any customers;  (ii) information relating to Utility's cost structure,
     contribution  or  profits  under  third  party  usages  allowed  under  the
     Agreement.

          3. Mediation  Procedures.  Mediation is a voluntary process in which a
neutral  third  party,   who  lacks  authority  to  impose  a  solution,   helps
participants  reach their own agreement for resolving a dispute or  transaction.
Utility and Railroad  agree to act in good faith  negotiation,  with the jointly
appointed mediator,  to reach an agreement,  utilizing the following basic roles
of the mediator in the Dispute resolution:

               - urging  participants  to agree to talk; - helping  participants
               understand the mediation  process;  - carrying  messages  between
               parties;  - helping  participants agree upon an agenda; - setting
               an agenda; - providing a suitable environment for negotiation;  -
               maintaining   order;  -  helping   participants   understand  the
               problem(s);  -  defusing  unrealistic  expectations;   -  helping
               participants develop their own proposals;  - helping participants
               negotiate;  -  persuading  participants  to  accept a  particular
               solution.

             (a) Mediation shall be held in Jacksonville, Florida.

             (b) Each party shall be responsible for its own attorney
     fees, and costs (including exhibits, witness fees, etc.), and shall each
     pay one-half (1/2) of the Mediator's fee(s).

             (c) The mediator shall be jointly selected as follows:

                 (1) Railroad shall designate five (5) members from the listed
                 panel of the U.S. District Court, Middle District of Florida as
                 a Potential Mediation Panel;

                 (2) Utility shall select one (1) of such Panel as the mediator;

                 (3) If the  selected  mediator  does not accept  the  mediation
                 appointment,   Utility  shall  designate  an  alternative,  and
                 continue  until  a  selected  mediator  accepts  the  mediation
                 appointment;

                 (4) If none of the Panel accepts the appointment, Utility shall
                 designate a new Potential  Mediation Panel of five (5) from the
                 list in Paragraph  2.(b)(1),  and Railroad shall select one (1)
                 of such Panel, as in Paragraphs (2) and (3).

             (d) The form of the Agreement to Mediate shall be as follows:

                                        2
<PAGE>

                              AGREEMENT TO MEDIATE

          Railroad and Utility,  through  their  respective  counsel,  stipulate
     that:

          1. The Dispute embodied in the Agreement stated is hereby submitted to
     mediation.

          2. The parties have selected _________________________ to be the
     mediator in this case.

          3. Parties  agree to meet with the mediator at _________ on _________,
     and continue to engage in the mediation process thereafter, if appropriate,
     as agreed to by the parties.

          4. The mediator shall be paid an hourly fee of $__________, with said
     fee apportioned equally among the parties.

          5. The mediation shall be private, unless the parties and the mediator
     otherwise  agree.  No  session  shall be  recorded,  and there  shall be no
     stenographic record maintained.

          6. Parties and counsel agree that the  mediator's  work product,  case
     file and any communication  made in the course of the mediation (other than
     the final signed Mediation Agreement) shall be confidential and not subject
     to  disclosure  in  any  subsequent  judicial,  administrative  or  private
     proceeding.

          7.  Parties  and  counsel  agree  that any  information,  writings  or
     disclosures  made during the mediation  process are governed by Rule 408 of
     the  Federal  Rules  of  Evidence,  and  shall  not  be  admissible  in any
     subsequent proceedings unless otherwise discoverable.

          8. Parties and counsel agree to participate fully in the mediation
     process and to do so in good faith.

          9. The mediator shall not be liable to any party for any act or
     omission in connection with the mediation conducted in this case.

          10. If possible, officers of the parties with full authority to settle
     the  Dispute  shall be present at the  Mediation.  Should  officers  of the
     parties, for whatever reason, not be present, counsel for each party agrees
     to attend the mediation  and have full and  immediate  access to the person
     authorized to settle during the entire course of the mediation.

          11. An agreement shall be executed by the parties if the Dispute is
     resolved.

          12. The mediation shall commence at the offices of __________________,
     on ____________________, at ____________________.

     RAILROAD:  By:___________________________ Date:___________________________

     RAILROAD ATTORNEY:_______________________________________

     UTILITY:   By:___________________________ Date:___________________________

     UTILITY ATTORNEY:________________________________________

     Accepted by Mediator:____________________ Date:___________________________

    4. Modification. These procedures may be modified by the parties hereto
without necessity of amending the Agreement.

                                        3
<PAGE>

                                    EXHIBIT L

                    AUTHORIZATION FOR FIBER OPTIC CABLE WORK

       FOR __________________________________________________ ("UTILITY")

CSX TRANSPORTATION, INC.
EXPENDITURES BILLING - J686
6735 Southpoint Drive, S
Jacksonville, FL 32216-6177

ATTENTION: GAIL A. LYCETT
(904) 279-6667 - FAX

THIS NOTICE CONFIRMS  UTILITY'S  AUTHORIZATION FOR FIBER OPTIC CABLE MAINTENANCE
OR EMERGENCY REPAIRS ON CSXT RIGHT-OF-WAY.

CSXT COST COLLECTION NUMBER (OSP):______________________________________________

EFFECTIVE DATE:_________________________________________________________________

LOCATION (S): CITY_____________________________________________  STATE__________

MILEPOST (S):___________________________________________________________________

UTILITY'S PROJECT NUMBER:_______________________________________________________

WORK DESCRIPTION:_______________________________________________________________

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

BEGINNING/ENDING DATES:  1.  START________________________________________

                         2.  END  ________________________________________

IF YOU HAVE ANY ADDITIONAL QUESTIONS, PLEASE CALL      _________________________

                                          Utility Representative's Phone Number)

               APPROVED:

               ---------------------------------  ------------------------------
               NAME                               TITLE

CC:  L. L. GALBREATH - CSXT (904)245-1030FAX

<PAGE>
                                                                       EXHIBIT M

                                                                     MWI 1905-01
                                                    FIBER OPTIC INSTALLATION SOP
[CSX TRANSPORTATION]                             ISSUED: 6/30/98   INITIAL ISSUE
                                                                     PAGE 1 OF 9

--------------------------------------------------------------------------------

PURPOSE:            To provide a Standard Operating Procedure for all fiber
                    optic installations.

SAFETY:             Observe all applicable Safety, and Operating Rules and
                    Regulations; and Safe Job Procedures. The CSXT Fiber Optic
                    Safety Program Requirements are included in this MWI.

LOCATION:           All CSXT tracks.

ENVIRONMENTAL:      Observe all applicable Federal, State and Local
    MSDS:           environmental rules and regulations.

I.   DISCUSSION

There are three previously issued MWIs concerning Fiber Optic projects. This MWI
is intended to supplement and support those MWIs. The previous MWIs are:

     -  MWI 1902, Fiber Optic Maintenance Projects,
     -  MWI 1903,  Protection  and/or  Relocation  of Fiber Optic Cable for CSXT
        Purposes or Installation of Side Tracks Serving CSXT Shippers, and
     -  MWI 1904, New Installation Projects for Fiber Optic Telecommunications.

II.  PROCEDURE

The following  procedure is the CSXT Standard Operating  Procedure (SOP) for all
fiber optic  installations  on CSXT properties and will be included in all fiber
optic specifications for construction.

     A. Quarterly Oversight Meetings:

        The  Director - Budget  and  Contracts  will  schedule  these  oversight
        meetings  once per quarter.  Additional  meetings may be  scheduled,  if
        required by the volume of  activity.  The  meetings  will be attended by
        representatives  from all concerned Fiber Optic Companies (FOC) and CSXT
        Management, Real Property and Engineering.  The meetings will review the
        scopes of work and schedules of all current and future projects, as well
        as planning, pre-bid,  pre-construction and construction requirements as
        described below.
<PAGE>
MWI 1905-01
6/30/98
Page 2 of 9

     B. Plan Review Meeting:

        The  Director - Budget and  Contracts  will  schedule  these Plan Review
        meetings as necessary.  The meeting will be attended by  representatives
        from the  concerned  FOC,  CSXT  Engineering  and the  CSXT  engineering
        consultant  for the  project.  The  meeting  will review the pre-bid and
        scheduling,  pre-construction  and construction  requirements  described
        below.

     C. Pre-Bid and Scheduling Meeting:

        The FOC will schedule the Pre-Bid and  Scheduling  meeting.  The meeting
        will be attended by representatives  from the concerned FOC, Contractors
        and CSXT Engineering (and/or CSXT Consultant).  This meeting will assign
        the Point Of  Contact  (POC)  for the FOC and for the  CSXT,  as well as
        clarify the safety and manpower requirements.

          1. Project Points of Contact

               a) The POC will be assigned for the CSXT Subdivision on which the
                  project  is  located.  There  will  be a  single  POC  for the
                  Railroad  and  another   designated  by  the  FOC.  These  two
                  individual  will be the contact points and decision makers for
                  the project. All calls,  questions or problems will be handled
                  with the assigned POC. This will  eliminate  many  unnecessary
                  calls.

               b) The CSXT POC will be responsible for:

                    -  All contacts within CSXT,  including  coordination of all
                       departments   involved  with  the   pre-construction  and
                       construction portions of the project.

                    -  All CSXT Transportation,  Engineering,  and Train Control
                       decisions during construction.

               c) The CSXT POC and the FOC POC will coordinate all aspects of
                  construction.

          2. Requirements for Safety and Manpower:

               a) Safety Requirements include:

                    - Daily job briefing and updates as required.

                    -  All workers on CSXT property must comply with CSXT Safety
                       Requirements including wear all required safety equipment
                       (see Safety Requirements, page 5).

                    -  CSXT will train one FOC  employee  in safety.  The FOC is
                       responsible  for ensuring all FOC employees & contractors
                       on site are properly trained.

<PAGE>
MWI 1905-01
6/30/98
Page 3 of 9

               b) Notification for Flagman and Signalman:

                    -  Because of manpower  demands and/or labor  agreements,  a
                       minimum  of 6  weeks  notice  is  preferred,  for  either
                       position.  Less than six weeks  notice  may result in job
                       delays.

                    -  Because of safety concerns and customer obligations, a 10
                       mile work limit per RR Subdivision is necessary.

          3. Emergency Contact Procedures:

                    - All emergencies will be reported to both POCs.

                    -  In event  the  POCs  cannot  be  reached,  the  emergency
                       information  will be reported the CSX Police  operator at
                       1-800-232-0144.  The POCs must be  notified  of  existing
                       situation ASAP.

     D. Pre-Construction Meeting:

        The FOC will schedule the Pre-Construction meeting. FOC will provide two
        (2) weeks written notice prior to Pre-Construction  Meeting to CSXT POC,
        CSXT Director - Budget and Contracts,  CSX Real  Property,  & CSXT Train
        Control  (Jacksonville).  The  meeting  will be  attended  by both POCs,
        representatives  from  Contractors  and CSXT  Engineering  (and/or  CSXT
        Consultant) and field supervisors, as necessary. The meeting will review
        the pre-bid and scheduling requirements described above.

     E. Construction Meeting:

        The FOC will  schedule  the  Construction  meeting.  The meeting will be
        attended  by  both  POCs,  representatives  from  Contractors  and  CSXT
        Engineering   (and/or  CSXT  Consultant)  and  field   supervisors,   as
        necessary.   The  meeting   will  review  the  pre-bid  and   scheduling
        requirements,  as  well  as  the  results  of the  construction  meeting
        described above.

          1. The project  schedule  will be  reviewed  in detail.  The CSXT POC,
             after consultation with the Division Engineer's office, will advise
             the FOC POC of all work times and locations.

          2. Track roadbed and ballast protection will be highlighted to the FOC
             and its  contractors.  The FOC and/or its contractors will maintain
             (at  all  times)  sufficient  ballast  rock  on the  job  site  for
             necessary  ballast  section  repairs  and/or  backfill,   including
             appropriate machinery for placement and compaction.

          3. All excavation will be shored in accordance with CSXT Safe Way Rule
             E-2 and restored as required above.
<PAGE>
MWI 1905-01
6/30/98
Page 4 of 9

          4. All construction and site restoration will be performed to the
             satisfaction of the Division Engineer and approved by the CSXT POC.

III. REFERENCES

     A. The CSX Transportation Fiber Optic Program Safety Requirements are
        included for easy reference. It begins on page five.

     B. The services provided by the consultants provide by CSXT are identified
        in the CSX Transportation Inspection and Supervision of Installation of
        Fiber Optic Conduit System. It begins on page six.
<PAGE>
MWI 1905-01
6/30/98
Page 5 of 9

                               CSX TRANSPORTATION
                               FIBER OPTIC PROGRAM
                               SAFETY REQUIREMENTS

GENERAL

-  - All fiber optic  workers must receive  CSXT SAFETY  AWARENESS  training and
   have a verification  card and/or hard hat sticker.  All CSXT Safety Rules and
   Contractor Policies will apply to fiber optic workers.

-  - All personnel  must wear CSXT  approved  Personal  Protection  Equipment in
   accordance  with "The CSX Safe Way" book,  which  includes  hard hat,  safety
   glasses,  steel toed shoes, hearing protection,  and others as specified,  by
   work type or local  supervision,  WHEN  WORKING  CLOSER THAN 25 FEET FROM THE
   NEAREST RAIL OF A MAIN TRACK.  When  working  beyond 25 feet from the nearest
   rail of a main track,  hard hats,  safety  glasses,  and laced work boots (no
   tennis shoes or street shoes) will be required.

-  - All "FRA Bridge  Worker  Safety"  rules will apply to fiber  optic  workers
   performing bridge attachments, including proper fall protection rules.

-  - All test  holes or pits  less  than 15 feet  from  the  centerline  of main
   tracks, will be filled or covered prior to passing of trains. No open pits or
   holes will be left over night. All pits and trenches will be shored according
   to OSHA requirements.

- - No dirt or debris will be allowed to foul the ballast section of the tracks.

- - No markings will be made on the rail or ties.

-  - All  excavation  or  plow  trenches  will  be  back  filled  and  compacted
   immediately after the work is done.

-  - All public  utilities,  CSXT  Engineering,  and the Railroad  Train Control
   Office, will be notified prior to any construction.

-  - Job Briefings  will be conducted  each morning and  throughout the day when
   conditions or job scope changes.

WORKING ON OR AROUND TRACKS

-  - All work in the FRA Red Zone (4 feet from  outside rail on each side of the
   track) will be done only with a CSXT,  FRA  qualified  flagman or watchman as
   specified by the local Engineering representative.

-  - All work  beyond 4 feet  from the  outside  rails,  must be done  under the
   supervision of a CSXT qualified inspector or flagman.

-  - Certain  types of work done  beyond 25 feet from the  outside of the rails,
   and with equipment that will not reach beyond this point, may be done without
   flagging  protection  or a watchman,  IF  APPROVED  BY THE LOCAL  ENGINEERING
   REPRESENTATIVE, AND PROTECTED BY A CONSTRUCTION FENCE.

- - All work must be stopped while trains are passing within the work zone.

-  - All workers will remain off the tracks. If necessary to perform the work on
   track, protection will be provided as stated above.

ANY  VIOLATION  OF ANY CSXT  SAFETY  RULES OR  POLICY,  MAY RESULT IN REMOVAL OF
CONTRACTOR OR PERSONEL FROM THE RIGHT OF WAY.

                              CSXT/LLG Rev. 06-12-98  Approved by Manager Safety
<PAGE>
MWI 1905-01
6/30/98
Page 6 of 9

                               CSX TRANSPORTATION
                             ENGINEERING DEPARTMENT
                                JACKSONVILLE, FL
                          INSPECTION AND SUPERVISION OF
                   INSTALLATION OF FIBER OPTIC CONDUIT SYSTEM

    CSXT has  retained  (consultant)  as an  engineering  consultant  to perform
    certain professional services,  which primarily entail intellectual work and
    professional   judgment,   and  may  or  may  not  require  supervision  and
    performance of some ancillary tasks or use of equipment such as instruments,
    tools, or machinery.

                      SCOPE OF ENGINEERING SERVICES SUMMARY

    GENERAL

    The  engineering  services  described  herein are  intended  to protect  the
    interests  of CSXT  during the  installation  of  conduit  systems by system
    owners and their installers on CSXT right-of-way. These engineering services
    will be performed by (consultant), Inc., hereinafter called "Consultant".

    The fiber  conduit  system will not be owned nor installed by CSXT (CSXT may
    acquire conduits or cables after installation). Plans and specifications for
    the  installation  of the conduit  system will be prepared by conduit system
    owners or their designated representatives. Plans and specifications will be
    subject to the review and  approval  of CSXT.  Installation  of the  conduit
    system will be performed by system owners or their contracted installers.

    SAFETY

    The Consultant's  employees that enter CSXT right-of-way shall be trained in
    Railroad  Safety  Awareness,  knowledgeable  of "FRA On Track Worker  Safety
    Rules",  and shall at all times wear required  safety  equipment  (steel toe
    shoes,  hard hat,  safety  glasses with side  shields or goggles,  and other
    items as specified by CSXT supervisors).

    SUMMARY OF SERVICES

    Engineering services shall include, but not be limited to, the following:

     -    PLAN REVIEW SERVICES

     Review  plans and  specifications  submitted  by Fiber Optic  Communication
     companies,  or their  installers,  and provide other support as directed by
     CSXT. The tasks assigned may include the following:

          Perform plan reviews and on-site  inspections in accordance  with CSXT
          Standards, and verify the terms of the installation agreements.

          Obtain and  coordinate  input from other CSXT units such as Design and
          Construction,  Real Estate Properties,  Division Engineering Units, or
          their designated representatives.

<PAGE>
MWI 1905-01
6/30/98
Page 7 of 9

          Prepare   marked  up  plans   together   with  reports  that  identify
          recommended actions and/or changes.

          Communicate  with the Fiber  Optics  Communications  companies  and/or
          their installers with regard to changes, revisions and approvals.

          Coordinate with other utility and/or fiber optic companies who already
          have  facilities and  installations  in place on CSXT right of way, or
          plan future installations.

          Coordinate the scheduling of High Rail  Inspections of projects during
          the planning and design phases.

          Obtain final plan approvals from the Division Engineering Units.

     -    CONSTRUCTION SERVICES

     Provide Construction Engineering and Inspection Services as follows:

          Promote safety at the work site by verifying that the owners and their
          installers comply with instructions of CSXT's flagmen, watchmen, etc.,
          and with CSXT  Safety  and FRA On Track  Worker  Safety  Requirements.
          (CSXT will provide a flagman to provide warning and protect the tracks
          for the movement of trains, when required).

          Provide  engineering  representation  on  behalf  of  CSXT  at  on-and
          off-site  meetings,   pre-bid  meetings,   pre-construction  meetings,
          progress meetings, final inspection, etc.

          Represent  CSXT in meetings  with state and local  agencies  regarding
          entry and disturbance of road crossings and other public facilities by
          the owners or installers.

          Confirm that the owners or their  installers  have notified the owners
          of  underground  facilities on CSXT property  which may be affected by
          the proposed work, and confirm that they have coordinated the proposed
          work with them.

          For each inspection  location,  maintain daily  communication (or more
          frequent  if  required)  with CSXT  Division  Engineer  or  designated
          representative  or D & C Project  Manager  as may be  directed  by the
          office of the Assistant  Chief  Engineer D & C via fax and/or  e-mail,
          and cell phone.

          Provide  daily  on-site  observation  at  all  work  locations  on  or
          immediately adjacent to CSXT property during installation of the fiber
          optic conduit systems.

          Verify that the owners and/or their  installers are in compliance with
          the  requirements  for Federal,  State,  Local and CSXT  environmental
          regulations, permits, etc., and coordinate with the CSXT Environmental
          Department.

          Monitor the installation of the conduit system for compliance with the
          approved plans and specifications.  Consultant will have the authority
          to  act  on   behalf  of  CSXT  and  the   Chief   Engineer,   or  his
          representative, to insure such compliance.
<PAGE>
MWI 1905-01
6/30/98
Page 8 of 9

          Approve minor  adjustments or deviations from the plan,  provided such
          adjustments or deviations are consistent  with the criteria  furnished
          by CSXT and used for Consultant's review of the plans.

          Promptly  report any  disputes,  major  deviations  and other items of
          concern to the designated CSXT Division Engineer, CSXT Project Manager
          or any  environmental  concerns to the designated  CSXT  Environmental
          Officer.

          Confirm the actual horizontal and vertical location of the fiber optic
          cable conform to the plans and specifications by physical  measurement
          at regular  intervals  and where  otherwise  required in  Consultant's
          judgment.  This  work  shall  be  coordinated  with the  owner  and/or
          installer, and CSXT as required.

          Ensure prompt clean up and  restoration of CSXT property by the owners
          and/or  installers  following  installation  of the fiber  optic cable
          systems,  to the  satisfaction of the  Division/Service  Lane/Business
          Unit engineering representative.

      STAFFING

          Upon notice of project  authorization,  (consultant) will assign, as a
          minimum, one Senior Construction Inspector to each project. Additional
          inspectors may be assigned to large, urban, or highly complex projects
          when specified by CSXT. The inspectors  will be equipped with suitable
          transportation, cell phones, portable computers and other equipment as
          may be required on the  project.  The  inspectors  will based near the
          site,  and be available  during the normal hours worked by the owner's
          and/or installer's forces.

      REPORTS

- -    PLAN REVIEW SERVICES

          Prepare marked up plans and reports  documenting  recommended  actions
          and/or proposed changes.

- -    CONSTRUCTION SERVICES

          Maintain  a daily  diary or log of  events  including  items  such as:
          supervisory  personnel  employed by the owners or their  installers at
          the  work  site;  type,   number  and  condition  of  the  owner's  or
          installer's equipment;  time of arrival and departure of CSXT flagmen,
          watchmen,  signal inspectors and other personnel;  time of arrival and
          departure of work trains and other CSXT  furnished  equipment;  "track
          time" allowed for work; the owners or their installers  production and
          progress; and any unusual occurrences.

          Provide detailed weekly status reports for all work locations.

Approved:      signed by R. K. Beckham

Date:          June 5, 1998

                                                          CSXT/LLG-Rev. 06-04-98
<PAGE>
MWI 1905-01
6/30/98
Page 9 of 9

Prepared by:   L. L. Galbreath

Reviewed:      /s/  ILLEGIBLE
               -------------------------------------------
               Director - Standards & Testing

Approved:      /s/ ILLEGIBLE
               -------------------------------------------
               AVP - Equipment & Track Systems Engineering

Office of the Assistant Vice President - Equipment and Track Systems Engineering
Jacksonville, Florida
MWI 1905-01, June 30, 1998Exhibit 10.10

                       ASSIGNMENT AND ACCEPTANCE AGREEMENT

         THIS ASSIGNMENT AND ACCEPTANCE AGREEMENT (this "Agreement"),dated as of
March 30, 2000, is by and between  Pathnet,  Inc., a Delaware  corporation  (the
"Seller")  and Pathnet  Telecommunications,  Inc., a Delaware  corporation  (the
"Purchaser").

                                   WITNESSETH:

         WHEREAS, Seller currently holds certain assets relating to the fiber
portion of its digital network;

         WHEREAS,  Purchaser  desires to purchase,  and Seller  desires to sell,
such assets,  and, as part of such purchase and sale,  Seller desires to assign,
and the Purchaser  desires to assume,  all of the  obligations  and  liabilities
relating to such assets,  subject,  in each case, to the  exemptions,  terms and
conditions set forth herein;

         NOW  THEREFORE,  in  consideration  of  the  premises  and  the  mutual
representations,  warranties and covenants and agreements hereinafter set forth,
and upon the terms and subject to the conditions  hereinafter set forth,  Seller
and Purchaser hereby agree as follows:

                                    ARTICLE I
                                   DEFINITIONS

         1.1 Certain Definitions. As used in this Agreement, the following terms
shall have the respective  meanings set forth below (such meanings to be equally
applicable to both the singular and the plural forms of the terms defined).

         (a)      Affiliate: As defined in Section 8.1.

         (b)      Agreement: As defined in the preamble.

         (c)      Closing: As defined in Article VII.

         (d)      Colonial Contribution Agreement: Shall mean that certain
Contribution Agreement, dated as of November 2, 1999, by and among the
Purchaser, the Seller and Colonial Pipeline Company, a Delaware and Virginia
corporation.

         (e) Contribution  Agreements:  Shall mean (i) that certain Contribution
Agreement,  dated as of November 2, 1999, by and among the Purchaser, the Seller
and The Burlington  Northern Santa Fe Railway Company,  a Delaware  corporation,
(ii) that certain Contribution  Agreement,  dated as of November 2, 1999, by and
among the  Purchaser,  the  Seller  and CSX  Transportation,  Inc.,  a  Virginia
corporation,  (iii) that certain Contribution Agreement, dated as of November 2,
1999, by and among the Purchaser,  the Seller and the preferred  stockholders of
the Purchaser, (iv) that certain

                                       -1-
<PAGE>
Contribution  Agreement,  dated  as of  November  2,  1999,  by  and  among  the
Purchaser,  the Seller and certain common stockholders of the Purchaser, and (v)
that certain  Contribution  Agreement,  dated November 4, 1999, by and among the
Purchaser, the Seller and David Schaeffer.

         (f)      Contribution Agreement Closing: As defined in Section 6.1(e).

         (e)      Fiber Assets:     As defined in Section 2.1.

         (f)      Indemnified Persons:      As defined in Section 8.1

         (g)      Indemnifying Persons:     As defined in Section 8.1.

         (h)      Purchaser: As defined in the preamble.

         (i)      Purchased Assets: As defined in Section 2.1.

         (j)      Purchase Price:   As defined in Section 4.1.

         (k)      Seller: As defined in the preamble.

         (l)      Survival Date:    As defined in Section 8.4.

                                   ARTICLE II
                              ASSETS TO BE ACQUIRED

         2.1 Acquisition and Transfer of Assets.  At the Closing (as hereinafter
defined),  upon the terms and subject to the conditions  hereinafter  set forth,
Seller  shall  sell,  assign,  transfer,  convey and deliver to  Purchaser,  and
Purchaser  shall purchase,  acquire and accept from Seller all right,  title and
interest of Seller in and to the certain assets relating to the fiber portion of
Seller's digital network,  including,  without limitation,  in and to all of the
assets,  properties,  rights,  contracts and claims  employed in connection with
such assets, wherever located, whether tangible or intangible, as the same shall
exist as of the  Closing.  The assets,  properties,  contracts  and claims to be
purchased pursuant to this Agreement are hereinafter collectively referred to as
the "Fiber  Assets." The Fiber Assets shall  include,  without  limitation,  all
right,  title and interest of Seller and its  Subsidiaries in and to the assets,
properties,  rights,  contracts and claims described in the following paragraphs
(a) through (g) but in each case, only to the extent  exclusively  used in, held
for exclusive use in or exclusively related to the Fiber Assets:

         (a) all rights in, to and under all contracts, commitments and other
agreements of Seller set forth below:

         (i)      Agreement between Pacific Fiber Link, LLC (A/K/A Worldwide
                  Fiber, Inc.) and Pathnet, Inc., dated March 31, 1999 as
                  amended by Letter, dated

                                       -2-
<PAGE>
                  June 28, 1999 and the Marketing Agreement between Pacific
                  Fiber Link, LLC (A/K/A Worldwide Fiber, Inc.) and Pathnet,
                  dated March 31, 1999.

         (ii)     Dark Fiber Network Agreement by and between Pathnet, Inc.,
                  Tri-State Generation and Transmission Association, Inc. and
                  other Participating Members Systems named therein, dated
                  August 5, 1999, Letter Agreement between Pathnet, Inc. and
                  Tri-State Generation and Transmission Association, Inc. dated
                  December 31, 1999 and Letter Agreement between Pathnet, Inc.
                  and Tri-State Generation and Transmission Association, Inc.
                  dated January 17, 2000, including the associated right of way
                  pursuant to Fiber Optic Cable Construction and Use Agreement
                  between Public Service Company of New Mexico and Pathnet, Inc.
                  dated June 9, 1999 and Fiber Optic Cable License Agreement
                  between Public Service Company of New Mexico and Pathnet, Inc.
                  dated December 23, 1999.

         (iii)    Agreement between CapRock Telecommunications Corp and Pathnet,
                  Inc. dated November 18, 1999 and Joint Marketing Agreement
                  between Pathnet, Inc. and CapRock Telecommunications, Corp,
                  dated November 18, 2999 and Letter Agreement between Pathnet,
                  Inc. and CapRock Telecommunications, Inc., dated January 17,
                  2000.

         (b)  all  inventories  of  work-in-progress,  raw  materials,  finished
products,  supplies, spare parts and other materials relating to the fiber route
under construction between Chicago, Illinois and Aurora, Colorado;

         (c)      all rights in and to insurance and indemnity claims relating
to the Fiber Assets;

         (d)      all prepaid expenses, advances and deposits relating to the
Fiber Assets;

         (e)      all rights, choses in action and claims, (known or unknown,
matured or unmatured, accrued or contingent) against third parties relating to
the Fiber Assets;

         (f)      all goodwill and going concern rights associated with the
items listed above; and

         (h)      a license to the intellectual property of Seller as set forth
in the License of Marks attached hereto as Exhibit A.

For convenience of reference,  the assets,  properties,  interests in properties
and rights that are to be sold, transferred,  conveyed and assigned to Purchaser
pursuant  to this  Section  2.1  are  collectively  referred  to  herein  as the
"Purchased Assets."

         2.2 Instrument of Conveyance and Transfer, Etc. At the Closing, Seller
shall deliver (or cause to be delivered) to Purchaser such deeds, bills of sale,
endorsements, assignments and other instruments of transfer, conveyance and
assignment as shall be

                                       -3-
<PAGE>
necessary to transfer,  convey and assign the Purchased Assets to the Purchaser.
Simultaneously therewith,  Seller shall take all steps as may be required to put
the Purchaser in possession of the Purchased Assets.

         2.3 Right of  Endorsement,  Etc.  Effective  upon the  Closing,  Seller
hereby constitutes and appoints Purchaser,  its successors and assigns, the true
and lawful attorney of the Seller with full power of  substitution,  in the name
of  Purchaser,  or the name of  Seller,  on  behalf  of and for the  benefit  of
Purchaser,  to collect all accounts and notes  receivable  and other items being
transferred,  conveyed and assigned to Purchaser as provided herein, to endorse,
without recourse,  checks, notes and other instruments in the name of Seller, to
institute and  prosecute,  in the name of Seller or otherwise,  all  proceedings
which  Purchaser  may deem  proper in order to  collect,  assert or enforce  any
claim,  right or title of any kind in or to the Purchased  Assets, to defend and
compromise  any and all actions,  suits or  proceedings in respect of any of the
Purchased  Assets,  and to do all such acts and  things in  relation  thereto as
Purchaser  may deem  advisable.  Seller  agrees  that the  foregoing  powers are
coupled  with an  interest  and shall be  irrevocable  by  Seller,  directly  or
indirectly,  whether  by the  dissolution  of Seller or in any manner or for any
reason.

         2.4 Further Assurances; Etc. Seller shall pay to Purchaser promptly any
amounts  which shall be received by Seller  after the Closing  which are, or are
received in connection with, Purchased Assets.  Seller at any time and from time
to time after the Closing,  upon the request of Purchaser  and at the expense of
Seller, shall do, execute,  acknowledge,  deliver and file, or shall cause to be
done, executed, acknowledged,  delivered or filed, all such further acts, deeds,
transfers,  conveyances,  assignments  or  assurance  as may be required for the
better  transferring,  conveying,  assigning and assuring to  Purchaser,  or for
aiding  and  assisting  in  the  collection  of or  reducing  to  possession  by
Purchaser, any of the assets, properties or rights being purchased hereunder.

         2.5 Assignment of Contracts,  Rights,  Etc. Anything  contained in this
Agreement to the contrary  notwithstanding,  this Agreement shall not constitute
an  agreement  or  attempted  agreement  to  transfer,  sublease  or assign  any
contract,  license, lease, sales order, purchase order or other agreement or any
claim or right of any benefit arising  thereunder or resulting  therefrom or any
permit or operating authority if an attempted  transfer,  sublease or assignment
thereof,  without the consent of any other party  thereto,  would  constitute  a
breach thereof or in any way affect the rights of Purchaser  thereunder.  Seller
and Purchaser shall use their respective best efforts,  and shall cooperate with
each other, to obtain the consent of such third party to any of the foregoing to
the  assignment  or  transfer  thereof to  Purchaser  in all cases in which such
consent is required for assignment or transfer. If such consent is not obtained,
Seller shall cooperate with Purchaser in any arrangements necessary or desirable
to provide for Purchaser the benefits thereunder, including, without limitation,
enforcement for the benefit of Purchaser of any and all rights of Seller thereof
against the other party thereto  arising out of the  cancellation  by such other
party or otherwise.

                                       -4-
<PAGE>
                                   ARTICLE III
                            ASSUMPTION OF LIABILITIES

         On  the  terms  and  subject  to  the  conditions  of  this  Agreement,
simultaneously with the transfer,  conveyance and assignment to Purchaser of the
Purchased Assets,  Purchaser shall assume all of the liabilities and obligations
relating to the Purchased Assets as such liabilities and obligations shall exist
immediately prior to the Closing.

                                   ARTICLE IV
                           PURCHASE PRICE OF PURCHASED
                               ASSETS; ALLOCATION

         4.1 Purchase  Price.  The aggregate  purchase  price to be paid for the
Purchased  Assets shall be $70,000,000 (the "Purchase  Price").  At the Closing,
against  delivery to the  Purchaser  of  appropriate  instruments  of  transfer,
conveyance and assignment  with respect to the Purchased  Assets,  the Purchaser
shall deliver to the Seller,  a Promissory  Note in the form attached  hereto as
Exhibit B in the principal amount of $70,000,000.

                                    ARTICLE V
                         REPRESENTATIONS AND WARRANTIES

         5.1 Representations and Warranties of the Seller. The Seller hereby
represents and warrants to the Purchaser as follows:

             (a)  Organization,  Standing and Power. The Seller is a corporation
         duly organized, validly existing and in good standing under the laws of
         the  State  of  Delaware  and has all  requisite  corporate  power  and
         authority to own,  lease and operate its properties and to carry on its
         business  as now being  conducted;  and the  Seller  has all  requisite
         corporate  power and  authority  and to enter into this  Agreement,  to
         perform its  obligations  hereunder and to consummate the  transactions
         contemplated  hereby.  Seller is duly qualified and in good standing to
         do  business  in every  jurisdiction  in which  such  qualification  is
         necessary.

             (b) Authority. The execution and delivery of this Agreement and the
         consummation of the transactions contemplated hereby have been duly and
         validly authorized by all necessary corporate action and on the part of
         the  Seller  and  this  Agreement   constitutes  a  valid  and  binding
         obligation  of the Seller  enforceable  in  accordance  with its terms.
         Neither the execution,  delivery and  performance of this Agreement nor
         the consummation by the Seller of the transactions  contemplated hereby
         nor compliance by the Seller with any of the provisions hereof will (i)
         conflict with or result in a breach of any provision of the Certificate
         of Incorporation or Bylaws of the Seller, (ii) cause a default (or give
         rise to any right of termination,  cancellation or acceleration)  under
         any of the terms,  conditions or provisions of any note,  bond,  lease,
         mortgage,  indenture, license or other instrument or agreement to which
         the Seller,  or by which the Seller, or any of its properties or assets
         is or may be bound or (iii) violate any law,

                                       -5-
<PAGE>
         statute,  rule or regulation or order,  writ,  judgment,  injunction or
         decree applicable to the Seller, or any of its properties or assets.

         5.2 Representations and Warranties of the Purchaser. The Purchaser
hereby represents and warrants to the Seller as follows:

                  (a)  Organization,  Standing  and Power.  The  Purchaser  is a
         corporation duly organized, validly existing and in good standing under
         the laws of the State of Delaware and has all requisite corporate power
         and authority to own, lease and operate its properties, to carry on its
         business  as now being  conducted,  to enter  into this  Agreement,  to
         perform its  obligations  hereunder and to consummate the  transactions
         contemplated hereby.

                  (b)  Authority.  The execution and delivery of this  Agreement
         and the consummation of the transactions  contemplated hereby have been
         duly and validly  authorized by all necessary  corporate  action on the
         part of the  Purchaser  and  this  Agreement  constitutes  a valid  and
         binding obligation of the Purchaser, enforceable in accordance with its
         terms.  Neither  the  execution,   delivery  and  performance  of  this
         Agreement nor the consummation of the transactions  contemplated hereby
         nor compliance by the Purchaser with any of the provisions  hereof will
         (i)  conflict  with or  result  in a  breach  of any  provision  of its
         Certificate of Incorporation  or Bylaws,  (ii) cause a default (or give
         rise to any right of termination,  cancellation or acceleration)  under
         any of the terms,  conditions or provisions of any note,  bond,  lease,
         mortgage,  indenture, license or other instrument or agreement to which
         the  Purchaser is a party,  or by which it or its  properties or assets
         may be bound, or (iii) violate any law, statute,  rule or regulation or
         order, writ, injunction or decree applicable to the Purchaser or any of
         its properties or assets.
                                   ARTICLE VI
                              CONDITIONS OF CLOSING

         6.1 Conditions of Obligations of the Purchaser.  The obligations of the
Purchaser  to perform  this  Agreement  are subject to the  satisfaction  of the
following conditions unless waived by the Purchaser:

                  (a)  Representations  and Warranties.  The representations and
         warranties  of the Seller set forth in Section 5.1 hereof shall be true
         and correct in all material  respects as of the date of this  Agreement
         and as of the Closing Date (as  hereinafter  defined) as though made on
         and as of the Closing Date.

                  (b)  Authorization.  All action  necessary to  authorized  the
         execution, delivery and performance of this Agreement by the Seller and
         the  consummation of the  transactions  contemplated  hereby shall have
         been duly and validly taken.

                                       -6-
<PAGE>
                  (c) Instruments of Transfer, Conveyance and Assignment. The
         Purchaser shall have received duly executed instruments of transfer,
         conveyance and assignment as contemplated by Section 2.2 hereof.

                  (d) Consents and Approvals.  The Purchaser shall have received
         duly executed  copies of all consents and approvals  required for or in
         connection  with the  execution  and  delivery  by the  Seller  of this
         Agreement and the consummation of the transactions  contemplated hereby
         including  the consent of the holders of the  Seller's 12 -1/4%  Senior
         Notes in accordance with the Indenture by and between Pathnet, Inc. and
         The Bank of New York, dated April 8, 1998.

                  (e) Closing  under  Contribution  Agreements.  The Closing (as
         defined in the  Contribution  Agreements)  and the Initial  Closing (as
         defined in the Colonial  Contribution  Agreement)  shall have  occurred
         (together, such occurrences, the "Contribution Agreement Closing").

         6.2  Conditions of Obligations  of the Seller.  The  obligations of the
Seller  to  perform  this  Agreement  are  subject  to the  satisfaction  of the
following conditions unless waived by the Seller:

                  (a)  Representations  and Warranties.  The representations and
         warranties  of the  Purchaser  set forth in Section 5.2 hereof shall be
         true  and  correct  in all  material  respects  as of the  date of this
         Agreement  and as of the  Closing  Date as though made on and as of the
         Closing Date.

                  (b)  Authorization.  All action  necessary  to  authorize  the
         execution,  delivery and performance of this Agreement by the Purchaser
         and the consummation of the transactions contemplated hereby shall have
         been duly and validly taken by the Board of Directors of the Purchaser.

                  (c) Closing under Contribution Agreements. The Contribution
         Agreement Closing shall have occurred.

                                   ARTICLE VII
                                     CLOSING

         The closing (the "Closing") for the  consummation  of the  transactions
contemplated  by  this  Agreement  shall  take  place   immediately   after  the
Contribution Agreement Closing shall have occurred.

                                  ARTICLE VIII
                                 INDEMNIFICATION

         8.1  Definitions.  As used in this Article VIII,  the  following  terms
shall have the following respective meanings:

                                       -7-
<PAGE>
                  (a)  "Affiliate"  shall mean a person or entity that directly,
         or  indirectly  through  one or more  intermediaries,  controls,  or is
         controlled  by, or is under common  control  with,  any other person or
         entity.

                  (b) "Indemnified Persons" shall mean and include the
         Purchaser, all Affiliates of the Purchaser, and the successors and
         assigns of the foregoing; and

                  (c) "Indemnifying Persons" shall mean the Seller and its
         successors and assigns.

         8.2  Indemnification.  The  Indemnifying  Persons  shall,  jointly  and
severally,  indemnify  and  save  the  Indemnified  Persons,  and  each of them,
harmless from, against, for and in respect of the following:

                  (a) any and all liabilities and obligations of the Seller not
         assumed by the Purchaser pursuant to this Agreement;

                  (b)  any  liabilities  and  obligations  of  the  Indemnifying
         Persons for fees, costs and expenses  relating to or arising out of the
         execution,   delivery  and   performance  of  this  Agreement  and  the
         consummation  of  the  transactions   contemplated  hereby,  including,
         without  limitation,  legal and accounting  fees and expenses and taxes
         incurred by the Indemnifying Persons;

                  (c) any damages,  losses,  obligations,  liabilities,  claims,
         actions or causes of action  sustained  or suffered by the  Indemnified
         Persons,   or  any  of  them,   and  arising   from  a  breach  of  any
         representation,  warranty,  covenant or agreement  of the  Indemnifying
         Persons  contained  in or made  pursuant  to this  Agreement  or in any
         certificate,  instrument or agreement  delivered by any of such parties
         pursuant  hereto or in connection  with the  transactions  contemplated
         hereby, or any facts or circumstances constituting such breach;

                  (d) all damages,  losses,  obligations,  liabilities,  claims,
         actions or causes of action  sustained  or suffered by the  Indemnified
         Persons,  or any of them, as a result of  non-compliance  by the Seller
         with the  provisions of the "bulk sales laws" of any state which may be
         applicable to the transactions contemplated hereby;

                  (e) all damages,  losses,  obligations,  liabilities,  claims,
         actions or causes of action  sustained  or suffered by the  Indemnified
         Persons,  or any of them,  as a result of the  failure  to  obtain  any
         consent or provide  any benefit  under any  contract,  license,  lease,
         sales order, purchase order or other agreement, claim, right, permit or
         operating authority; and

                  (f) all reasonable costs and expenses (including, without
         limitation reasonable attorney's, accountants' and other professional
         fees and expenses)

                                       -8-
<PAGE>
         incurred by the Indemnified Persons, or any of them, in connection with
         any action, suit, proceeding,  demand,  assessment or judgment incident
         to any of the matters indemnified against under Section 8.2(a), Section
         8.2(b), Section 8.2 (c), Section 8.2 (d) and Section 8.2 (e) hereof.

No  claim,  demand,  suit or  cause  of  action  shall be  brought  against  the
Indemnifying   Persons  under  or  pursuant  to  this  Section  8.2  unless  the
Indemnified  Persons, or any of them, at any time prior to the Survival Date (as
defined in Section 8.4 hereof),  give the  Indemnifying  Persons written notice,
with reasonable specificity, of the existence of any such claim, demand, suit or
cause of action under this Agreement.  Upon the giving of such written notice as
aforesaid,  the  Indemnified  Persons,  or any of them,  shall have the right to
commence legal  proceedings  within one year subsequent to the Survival Date for
the enforcement of its or their rights under this Agreement.

         8.3  Third  Party  Claims.  The  obligations  and  liabilities  of  the
Indemnifying  Persons  hereunder  with  respect  to  claims  resulting  from the
assertion of liability by third parties shall be subject to the following  terms
and conditions:

                  (a) The  Indemnified  Persons shall give prompt written notice
         to the  Indemnifying  Persons of any  assertion of liability by a third
         party  which  might  give  rise to a claim by the  Indemnified  Persons
         against  the  Indemnified  Persons  based on the  indemnity  agreements
         contained  in Section 8.2 hereof,  stating the nature and basis of said
         assertion and the amount thereof, to the extent known.

                  (b) In the event any  action,  suit or  proceeding  is brought
         against the Indemnified Persons, with respect to which the Indemnifying
         Persons may have liability under the indemnity  agreement  contained in
         Section 8.2 hereof,  the action,  suit or  proceeding  shall,  upon the
         written  agreement of the Indemnifying  Persons that they are obligated
         to indemnify  under the  indemnity  agreement  contained in Section 8.2
         hereof, be defended  (including all proceedings on appeal or for review
         which  counsel  for  the  defendant  shall  deem  appropriate)  by  the
         Indemnifying  Persons.  The Indemnified Persons shall have the right to
         employ  its or their own  counsel  in any such  case,  but the fees and
         expenses of such  counsel  shall be at the expense of such  Indemnified
         Persons  unless  (i) the  employment  of such  counsel  shall have been
         authorized by the  Indemnifying  Persons in connection with the defense
         of such action, suit or proceeding, (ii) the Indemnifying Persons shall
         not  have  agreed,  promptly  after  the  notice  to them  provided  in
         subsection  (a) above,  that they are obligated to indemnify  under the
         indemnity  agreement  contained  in  Section  8.2  hereof or (iii) such
         Indemnified  Person shall have  reasonably  concluded that such action,
         suit or proceeding  involves to a significant extent matters beyond the
         scope of the indemnity  agreement  contained in Section 8.2 hereof,  or
         that  there  may be  defenses  available  to it  (or  them)  which  are
         different  from or  additional to those  available to the  Indemnifying
         Persons, in any of which events the Indemnifying Persons shall not have
         the right to direct the defense of such action,  suit or  proceeding on
         behalf of the  Indemnified  Persons  and that  portion of such fees and
         expenses reasonably

                                       -9-
<PAGE>
         related to matters  covered by the  indemnity  agreement  contained  in
         Section  8.2 hereof  shall be borne by the  Indemnifying  Persons.  The
         Indemnified  Persons shall be kept fully informed of such action,  suit
         or  proceeding  at  all  stages  thereof  whether  or not  they  are so
         represented.  The  Indemnifying  Persons  shall make  available  to the
         Indemnified  Persons and their  attorneys and accountants all books and
         records of the  Indemnifying  Persons  relating to such  proceedings or
         litigation  and the parties  hereto  agree to render to each other such
         assistance  as they may  reasonably  require  of each other in order to
         ensure the  proper and  adequate  defense of any such  action,  suit or
         proceeding.

                  (c) The Indemnifying  Persons shall not make any settlement of
         any claims without the written consent of the Indemnified Persons.

         8.4 Survival.  All  representations  and  warranties  contained in this
Agreement shall survive the Closing hereunder until the second  anniversary (the
"Survival  Date") of the date  hereof,  at which time such  representations  and
warranties shall expire and be terminated and extinguished.

         8.5 Remedies Cumulative. The remedies provided for in this Article VIII
shall be cumulative and shall not preclude assertion by the Indemnified  Persons
of  any  other  rights  or  the  seeking  of  any  other  remedies  against  the
Indemnifying Persons.

                                   ARTICLE IX
                       AMENDMENT, MODIFICATION AND WAIVER

         This  Agreement  shall  not be  altered  or  otherwise  amended  except
pursuant  to an  instrument  in writing  signed by each of the  parties  hereto,
except that any party to this Agreement may waive any  obligation  owed to it by
another party under this  Agreement.  The waiver by any party hereto of a breach
of any  provisions  of this  Agreement  shall not operate or be  construed  as a
waiver of any subsequent breach.

                                    ARTICLE X
                                  MISCELLANEOUS

         10.1 Bulk Sales  Compliance.  Subject to Section 8.2(d),  the Purchaser
hereby waives  compliance  by the Seller with the  provisions of the "bulk sales
laws" (i.e., Article 6 of the Uniform Commercial Code) of any state which may be
applicable to the transactions contemplated hereby.

         10.2 Entire  Agreement.  This  Agreement and the Exhibits and Schedules
attached hereto contain the entire  agreement among the Purchaser and the Seller
with respect to the  transactions  contemplated  hereby and  supersede all prior
agreements or understandings among the parties with respect thereto.

                                      -10-
<PAGE>
         10.3 Descriptive Headings. Descriptive headings are for convenience
only and shall not control or affect the meaning or construction of any
provision of this Agreement.

         10.4  Counterparts.  This  Agreement  may be  executed in any number of
counterparts, and each such counterpart hereof shall be deemed to be an original
instrument,  but  all  such  counterparts  together  shall  constitute  but  one
agreement.

         10.5 Governing Law. This Agreement shall be governed by and construed
in accordance with the laws of the State of Delaware.

         10.6  Benefits  of  Agreements.  All the terms and  provisions  of this
Agreement  shall be binding upon and inure to the benefit of the parties  hereto
and their respective  successors and assigns.  Anything  contained herein to the
contrary  notwithstanding,  this Agreement  shall not be assignable by any party
hereto without the consent of the other party hereto.

         IN WITNESS WHEREOF, each of the parties has caused this Agreement to be
executed on its behalf as of the day and year first above written.

                                PATHNET, INC.

                                By: /s/ Mary McDermott
                                   -------------------------------------
                                Name: Mary McDermott
                                Title: Senior Vice President, General Counsel
                                        and Secretary

                                PATHNET TELECOMMUNICATIONS, INC.

                                By: /s/ Mary McDermott
                                   -------------------------------------
                                Name: Mary McDermott
                                Title: Senior Vice President, General Counsel
                                        and Secretary

                                      -11-
<PAGE>
                                                                       EXHIBIT A

                                LICENSE OF MARKS

                  WHEREAS,  Pathnet, Inc., a Delaware corporation having offices
at 1015 31st Street, N.W.,  Washington,  D.C., 20007 ("Licensor"),  has adopted,
used and is using trademarks, service marks, logos and designs including without
limitation the "A NETWORK OF OPPORTUNITIES"  and "PATHNET" service marks and the
Pathnet logo (all such  trademarks,  service  marks,  logos and designs shall be
collectively referred to herein as the "Marks"); and

                  WHEREAS, Pathnet Telecommunications, Inc., a Delaware
corporation having offices at 1015 31st Street, N.W., Washington, D.C., 20007
("Licensee"), is desirous of a license to use the Marks;

                  NOW, THEREFORE,  for good and valuable consideration,  receipt
of which is hereby acknowledged, the parties hereto agree as follows:

         1. License. Licensor does hereby grant to Licensee the perpetual,
non-exclusive right and license to use the Marks on a royalty-free basis in
connection with Licensee's telecommunications business; provided, however, that
Licensee shall retain the right to use the Marks.

         2.  Ownership  of Marks.  Licensee  acknowledges  and  agrees  that (a)
Licensor  is the owner of the entire  right,  title and  interest  in and to the
Marks and the Marks, or any form or embodiment  thereof (as well as the goodwill
now or  hereafter  attached to the same) are the property of and all use thereof
shall inure to the benefit of Licensor, and (b) Licensee shall have no rights to
the Marks other than those set forth in this License of Marks.

         3. Approvals/Quality Control. Licensee shall, upon request of Licensor,
submit  representative  samples  of  Licensee's  use of the  Marks to  Licensor,
without charge to Licensor, and Licensor shall have a period of ten (10) days to
notify Licensee of their acceptance or rejection.

         4.  Representations,  Warranties  and  Covenants of Licensor.  Licensor
represents  and  warrants  that it is the owner of the Marks and the  registrant
therefor, that Licensor has the full power and authority to license the right to
use the Marks,  that  Licensor has not entered into any  agreements  in conflict
with this License of Marks, and that there are no actions,  suits or proceedings
pending or, to Licensor's knowledge, threatened against Licensor with respect to
the Marks.  Licensor agrees to take all such further actions, and to execute any
and all such further documents and instruments, as may be necessary or desirable
to confirm the license executed hereby.

         5. Assignment. Neither party may assign any or all of its rights or
delegate any of its duties under this Agreement without the consent of the other
party, provided,

                                      -12-
<PAGE>
that either party hereto may assign its rights, but not its obligations,  to any
Affiliate  without  the  consent of the other  party.  For the  purposes of this
Section 5, an  "Affiliate"  of a party shall mean a subsidiary  of such party or
other entity under common ownership or control.

                  IN  WITNESS  WHEREOF,  this  LICENSE  OF  MARKS  is  made  and
effective as of the 30th of March, 2000.

                                       PATHNET, INC.

                                       By: ___________________________________
                                      Name:
                                     Title:

                                       PATHNET TELECOMMUNICATIONS, INC.

                                       By: ___________________________________
                                      Name:
                                     Title:

                                      -13-
<PAGE>
                                                                       Exhibit B

                                     FORM OF
                                 PROMISSORY NOTE

     $70,000,000.00                                               March 30, 2000

         FOR VALUE  RECEIVED,  PATHNET  TELECOMMUNICATIONS,  INC., a corporation
duly  organized  under  the laws of the  State of  Delaware  (the  "Purchaser"),
promises to pay to Pathnet,  Inc., a Delaware corporation,  at 1015 31st Street,
Washington,  DC 20007  ("Seller"),  or at such other place as the holder of this
Note may from time to time designate in writing, the principal amount of SEVENTY
MILLION  AND NO/100  DOLLARS  ($70,000,000.00),  together  with  interest on the
unpaid  principal  amount  of this Note  computed  from the date of  Closing  as
defined  in  the  Assignment  and  Acceptance  Agreement  (the  "Assignment  and
Acceptance")  by and between  Purchaser  and Seller,  dated the date hereof,  as
amended from time to time, until the entire indebtedness is paid, at the rate of
twelve and one quarter percent (12-1/4%) per annum. The principal amount of this
Note shall be due and payable on March 31, 2010. Accrued interest  calculated on
the outstanding  principal  amount as described above shall be payable yearly on
the last day of each year  commencing with the year ended December 31, 2000. All
payments  hereunder  shall be made in  lawful  money  of the  United  States  of
America.

         The unpaid  principal amount of this Note may be prepaid in whole or in
part at any time.

         The entire  unpaid  principal  amount of this Note or any  extension or
renewal hereof,  together with accrued interest and all charges owing under this
Note or the Assignment and Acceptance,  shall immediately become due and payable
at the  option of the holder of this Note,  without  demand or notice,  upon the
occurrence of any of the following Events of Default:

         (a) Purchaser  fails to pay the principal  amount of this Note when the
same  becomes  due and  payable  (whether  on the date on which  such  principal
becomes due or upon acceleration or otherwise); or

         (b)  Purchaser  fails to pay any interest when the same becomes due and
payable  hereunder  and such failure to pay continues for ten (10) business days
after the date on which such payment of interest was due.

         If this Note, after maturity,  whether by acceleration or otherwise, is
placed in the hands of an attorney  for  collection,  whether suit is brought on
the same or not,  Purchaser  shall pay to the holder of this Note all attorneys'
fees as are incurred for the purposes of collection hereof.

                                      -14-
<PAGE>
         Each  Obligor  under this Note  (which  term shall  include all makers,
guarantors,  endorsers and other persons assuming  obligations  pursuant to this
Note) hereby waives presentment,  protest,  demand, notice of dishonor,  and all
other  notices,  and all defenses and pleas on the grounds of any  extensions of
the time of payments or the due dates of this Note, in whole or in part,  before
or after maturity, with or without notice. No renewal or extension of this Note,
no release or surrender of any  collateral  given as security for this Note,  no
release  of any  Obligor,  and no  delay  in  enforcement  of  this  Note  or in
exercising  any right or power  hereunder,  shall  affect the  liability  of any
Obligor.

         This  Note  may not be  changed  orally,  but only by an  agreement  in
writing  which is signed by the party  against whom  enforcement  of any waiver,
change, modification or discharge is sought.

         IN WITNESS WHEREOF,  Purchaser has caused this Note to be duly executed
on its behalf as of the date set forth at the beginning of this Note, as the act
and deed of Purchaser.

                                    PATHNET TELECOMMUNICATIONS, INC.

                                    By:     ____________________________________
                                            Name:
                                            Title:

                                      -15-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00009-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00009-of-00352.parquet"}]]