Article VIII SEPARATION ALLOWANCE

Section 1. Beginning July 10, 1989, the Company will solicit for a period of thirty (30) days ^{voluntary separation requests from eligible train and yard service employees. The amount of the separation allowance shall be an amount equal to the greater of the employee's train and yard service earnings on the first seniority district during either the 1987 or 1988 calendar years, subject to all applicable taxes. If the 1988 year is utilized, Productivity Fund payments for 1988, received in 1989, will be included. The minimum separation allowance shall be as follows:}

Hired between October 31, 1985 and the effective date of this Agreement - $25000

Employees protected by Crew Consist Agreement effective September 15, 1980 - $50000

Section 2. Under this Article VIII, an employee eligible for a separation allowance is an employee holding seniority and performing service on the First Seniority District. (See Side Letter #16) .

Section 3. Eligible employees applying for the separation allowance under (1) above may elect to receive the allowance in one lump sum payment or elect to receive it in twenty-four (24) equal amounts over a two (2) year period and must give the designated officer notice when making application.