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PL X 940206 Form Approved, AVP-Law PIPELINE CROSSING AGREEMENT Mile Post: 8.51, Altoona Subdivision/Branch Location: Lake Elmo, Washington County, Minnesota Folder No. 02374-70 THIS AGREEMENT is made and entered into as of February 22, 2006, by and between UNION PACIFIC RAILROAD COMPANY, a Delaware corporation, (hereinafter the "Licensor") and CITY OF LAKE ELMO, MINNESOTA, a Minnesota municipal corporation to be addressed at 3800 Laverne Avenue, Lake Elmo, Minnesota 55042 (hereinafter the "Licensee"). IT IS MUTUALLY AGREED BY AND BETWEEN THE PARTIES HERETO AS FOLLOWS: Article I. LICENSE FEE. Upon execution of this Agreement, the Licensee shall pay to the Licensor a one-time License Fee of One Thousand Five Hundred Dollars ($1,500.00). Article II. LICENSOR GRANTS RIGHT. In consideration of the License Fee to be paid by the Licensee and in further consideration of the covenants and agreements herein contained to be by the Licensee kept, observed and performed, the Licensor hereby grants to the Licensee the right to construct and thereafter, during the term hereof, to maintain and operate only a 12" water pipeline crossing (hereinafter the "Pipeline") in the location shown and in conformity with the dimensions and specifications indicated on the attached print dated March 13, 2006, marked Exhibit A. Under no circumstances shall Licensee modify the use of the Pipeline for a purpose other than the above -mentioned, and said Pipeline shall not be used for any other use, whether such use is currently technologically possible, or whether such use may come into existence during the life of this Agreement. Article III. CONSTRUCTION. MAINTENANCE AND OPERATION. The grant of right herein made to the Licensee is subject to each and all of the terms, provisions, conditions, limitations and covenants set forth herein and in Exhibit B, attached hereto and hereby made a part hereof. Article IV. IF WORK IS TO BE PERFORMED BY CONTRACTOR If a contractor is to do any of the work performed on the Pipeline (including initial construction and subsequent relocation or substantial maintenance and repair work), then the Licensee shall require its contractor to execute the Railroad's form Contractor's Right of Entry Agreement. Licensee aelmowledges