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WHEREAS, the RAILROAD agrees said Crossing Signal Equipment can and will be installed prior to any other improvement listed in said Exhibit "B-1", and Exhibit "13-2 attached hereto and incorporated herein; WHEREAS, the improvements listed in said Exhibits "B-l" and Exhibit "B-2" can be installed by a third party before or after said Crossing Signal Equipment; NOW, THEREFORE, in consideration of the mutual covenants and agreements of the parties contained herein, the receipt and sufficiency of which are hereby aclmowledged, the parties agree as follows: ARTICLE I — SCOPE OF WORK 1. The term "Project" as used in this agreement includes said Crossing Signal Equipment and any and all work related to the installation thereof to make it operational at U.S. DOT crossing 026711U, indicated on said Exhibit "A" and Exhibit "B-1" which are attached hereto and incorporated herein, including, but not limited to, any and all changes to telephone, telegraph, signal and electrical lines and appurtenances, installation of advance warning signs and pavement marking stop bars, installation of any new crossing surface, temporary and permanent track work, fencing, grading, alterations to or new construction of drainage facilities, preliminary and construction engineering and contract preparation, and disposal of scrap. ARTICLE II — RAILROAD OBLIGATIONS In consideration of the covenants of AGENCY set forth herein and the faithful performance thereof, RAILROAD agrees as follows: 1. The RAILROAD will, using its own labor forces under applicable labor agreements, install said Crossing Signal Equipment. The work will be performed at AGENCY's expense and in accordance with the MUTCD and the plans and specifications approved by AGENCY. The plans and specifications are attached to this Agreement as said Exhibits "13-1" and `B-2) and incorporated herein. 2. 'rho detailed estimate of RAILROAD'S Project cost include construction engineering, installation labor (including the costs, if any, of electrical service from a public utility), traffic control, administration costs, plan review costs, permit costs and material costs required for the Project are attached hereto as Exhibit "C" and incorporated herein. In the event construction for the Project has not commenced within (6) months following the effective date of this Agreement, RAILROAD may, in its sole and absolute discretion, revise the cost estimates set forth in said Exhibit "C". In such event, the revised cost estimates will become a part of this Agreement as though originally set forth herein. Any item of work incidental to the items listed on Exhibit "C" not specifically mentioned therein may be included as a part of this Agreement upon written approval of AGENCY, which approval will not be unreasonably withheld. 3. RAILROAD will furnish all labor, materials, tools and equipment for the railroad portion of the work required for the construction of said Project. 2