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'ROE 880702 %..1 Spl. Form Approved, AVP-Law by THB 6/2/90. SPECIAL AGREEMENT THIS AGREEMENT is made and entered into as of the day of July, 1990, by and between UNION PACIFIC RAILROAD COMPANY, a Utah corporation (hereinafter the "Railroad"); and SECURITY OWNERS CORPORATION, a California corporation, of 555 Escobar St. , Martinez, CA 94553, attention: Mr. Phillip E. Busby, President, phone: (415)228-5872, FAX: (415)228-5884; and KAUFMAN A BROAD, a California corporation, of 2105 Lancey Drive - Suite 1, Modesto, CA 95355, attention: Mr. Robert Knobel, V.P. - Director of Operations, phone: (209) 523-4503, FAX: (209) 523-4626 (hereinafter collectively called the "Developer", as their respective interests may appear) . R E C I T A L S Union Pacific Railroad Company (the "Railroad") owns an underground 4" diesel fuel transmission line which runs through the intersection of 8th Street and Fresno Ave. , in Stockton, CA. Security Owners Corporation and Kaufman & Broad (the "Developer") are in the process of constructing a sanitary sewer/storm drain trunk line project that will pass through this intersection. In order to facilitate Licensee's installation of it's sewer/storm trunk line, Developer has requested Railroad's permission to temporarily cut, cap, remove and reinstall a segment of Railroad's diesel fuel line, taking all possible precautions not to release, spill or leak any of the contents thereof. IT IS MUTUALLY AGREED BY AND BETWEEN THE PARTIES HERETO AS FOLLOWS: I. DEFINITION OF DEVELOPER. For purposes of this agreement, all references in this agreement to the Developer shall include the Developer's contractors, subcontractors, officers, agents and employees, and others acting under its or their authority. Ii. RIGHT GRANTED; PURPOSE. The Railroad hereby grants to the Developer the right, during the term hereinafter stated and upon and subject to each and all of the terms, provisions and conditions herein contained, to excavate and expose a section of Railroad's four - inch diesel fuel line located in the vicinity of the intersection of 8th Street and Fresno Avenue, at or near Stockton, California, as shown on the attached print, furnished by Developer, marked Exhibit "B", for the purpose of cutting and capping each end of the pipe, and removing a section of the pipe that shall be reinstalled by the Developer at a later time. The right herein granted to Developer is limited to those portions of the Railroad's property specifically described herein, or designated by the Railroad representative named in Article 4. III. TERMS AND CONDITIONS CONTAINED IN EXHIBITS A AND A-1. The terms and conditions contained in Exhibits A and A-1, hereto attached, are hereby made a part of this agreement. Articles of Agreement Page 1 0702n