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Contract Number: BF-20583561 1 of 59 GRADE CROSSING CONSTRUCTION AND MAINTENANCE AGREEMENT BNSF File No.: BF-20583561 Mile Post 14.79 Line Segment 214 U.S. DOT Number 082586J This Agreement (“Agreement”), is executed to be effective as of [___________,___] (“Effective Date”), by and between BNSF RAILWAY COMPANY, a Delaware corporation (“BNSF”), MINNESOTA COMMERCIAL RAILWAY (“MNNR”) and the City of Hugo, a political subdivision of the State of Minnesota (“Agency”). RECITALS WHEREAS, BNSF owns and MNNR operates a line of railroad in and through the City of Hugo, State of Minnesota; WHEREAS, in the interest of aiding vehicular travel and public safety, the Agency is undertaking a project to improve the existing 130th Street North at-grade crossing, located at MNNR Line Segment 214 and Milepost 14.79, and designated by D.O.T. No. 082586J, by adding a bituminous trail north of the crossing within the existing roadway easement across the BNSF right-of-way as indicated on the Exhibit A, attached hereto and incorporated herein; and WHEREAS, the existing at-grade crossing known as 140th Street North, Milepost 15.787, DOT No. 082589E, Line Segment 214 will be permanently closed, vacated, abandoned, and removed upon completion of construction and the placing in service of said new 130th Ave North at-grade crossing; WHEREAS, the parties agree that the RAILROAD will receive no ascertainable benefit from the installation of advance warning signs, pavement marking stop bars or crossing signal equipment (hereinafter collectively called, “Crossing Signal Equipment”); and WHEREAS, the Agency also desires to install a new crossing for pedestrian use just north of the existing crossing across 130th Street North; and WHEREAS, the Agency is paying for the acquisition and placement of the bell and the new crossing surface at 130th Street North for pedestrian use.