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MEMORANDUM OF UNDERSTANDING <br />REPAIR AND REMOVAL OF GRADE CROSSINGS IN CITY OF COLTON <br />1. PARTIES AND DATE. <br />This Memorandum of Understanding ("MOU") is made and entered into this 17th day of <br />February , 1998 by and between Union Pacific Railroad Company ("UPRR:'), a <br />Utah corporation with its principal place of business located at 1200 Corporate Center Drive, <br />Monterey Park, California 91754, and the City of Colton ("City"), a municipal organization <br />operating under the laws of the State of California and located at 650 North La Cadena Drive <br />Colton, California 92324. <br />2. RECITALS. <br />2.1 UPRR, as successor in interest to Southern Pacific Transportation Company <br />("SP"), has applied to the City for a permit to construct a new track connection from the <br />Burlington Northern and Santa Fe Railway main line to the former SP main line (hereinafter <br />referred to as the "New Track Project"). <br />2.2 The City has requested that certain grade crossing repair and removal work be <br />accomplished on the SP San Bernardino and Riverside branches within the jurisdictional <br />boundaries of the City as part of the overall New Track Project (hereinafter referred to as the <br />"Repair Work"). The Repair Work is more particularly described in Exhibits "A' and `B" <br />attached hereto and incorporated herein by reference. UPRR is willing to perform the portion of <br />the Repair Work described in Exhibit "A" attached hereto at its sole cost and expense as a <br />condition to receiving its permit to construct the New Track Project ("hereinafter referred to as <br />the "UPRR Work"). The City shall provide that portion of the repair Work described in Exhibit <br />"B" attached hereto (hereinafter referred to as the "City Work"). <br />2.3 UPRR and City desire to enter into this MOU to allocate responsibility and to <br />establish a schedule for the Repair Work to be accomplished. <br />3. TERMS. <br />3.1 UPRR promises and agrees to furnish all labor, materials, tools, equipment, <br />services, and incidental and customary work necessary to fully and adequately perform the UPRR <br />Work at its sole cost and expense to the reasonable satisfaction of the City's Public Works <br />Department. UPRR shall ensure that all UPRR Work is performed in a skillful and competent <br />manner, consistent with the standards generally recognized as being employed by professionals <br />performing such work in the State of California. <br />RVPUB\DRD\36454 <br />