Section 1. The Carrier shall establish a Reserve Board for employees working on the First Seniority District as of the effective date of this Agreement. (See Side Letters #6 and #21)

An employee on the Reserve Board shall be paid whichever is the greater of the following two options:

(a) 70% of the basic yard helper's rate for five days per week; or,

(b) 70% of the employee's earnings on this territory during the calendar year 1987 or 1988, whichever is greater. If the 1988 year is utilized, Productivity payments for 1988 which were received in 1989 will be included for computation of the 70%. (See Side Letters 3 and 11)

NOTE: No other payments shall be made to or on behalf of an employee on the Reserve Board except for payment of premiums under applicable health and welfare plans. No deductions from pay shall be made on behalf of a Reserve Trainmen except for deductions of income, employment or payroll taxes (including railroad retirement taxes) pursuant to federal, state or local law, deductions of dues pursuant to an applicable union shop agreement and any other deductions authorized by agreement; and, any other legally required deduction. Employees assigned to the Reserve Board shall be eligible for the carrier's Tuition Aid Program. (See Side Letter #5)Section 2 . An employee placed on the Reserve Board shall remain in that status until:

(a) The employee is discharged from employment by the Carrier in accordance with the applicable discipline rules.

(b) The employee resigns from the Carrier's employment.

(c) The employee is recalled to active service. Such recall shall be in reverse seniority order in accordance with Paragraph — (-e-) of this Article X.

(d) The employee is placed in a furlough status because of a reduction of assignments. For example, if the number of jobs is reduced from 10 to 9 , the employees whose assignment is reduced shall have a free exercise of seniority. Seniority displacements shall continue until the junior employees are furloughed, only if there are no vacant positions on the Reserve Board.

(e) The employee exercises seniority in accordance with Paragraph (1) of Article XIII of this Agreement.

(f) The employee exercises seniority in accordance with Paragraph (2) of Article XIII of this Agreement. Any employee so exercising seniority cannot return to the Reserve Board until the next "Sadie Hawkins Week" unless the employee is displaced or a vacancy occurs on the Reserve Board. This provision is subject to the requirements of Article V(l) (c) of this Agreement.

Section 3 . Employees on the Reserve Board must maintain their work proficiencies while in such status, by successfully completing any retraining or refresher programs required to maintain those proficiencies which may include the passing of any tests or examinations (including physical examinations) administered for purposes of determining whether such proficiencies have been maintained. In order to ensure that work proficiencies are properly maintained, each employee on the reserve board will be required to work, seniority permitting, for six continuous months in every thirty-month period beginning with the implementation date of this agreement. It will be incumbent upon the employee to use the provisions of the Sadie Hawkins week section of this agreement or to make application for regular vacancies to accomplish this requirement. An employee who has not met this requirement at the end of a thirty-month period shall have their reserve pay halted until they have completed this requirement unless prevented from doing so as a result of insufficient seniority. (See Side Letter 12)Section 4. Employees on the Reserve Board must hold themselves available for return to service upon thirty (30) days' notice (Reserve pay shall continue for only seven (7) days) and must return to service in compliance with such thirty (30) days' notice. Failure to comply with any of these requirements will result in forfeiture of all seniority rights. (See Side Letters 15 and 15)

Section 5. Other employment while on the Reserve Board is permissible so long as there is no conflict of interest. There shall be no offset for outside earnings.

Section 6. Vacation pay received while on the Reserve Board will offset pay received under Paragraph 1(a). Time spent in reserve status will not count toward determining whether the employee is eligible for vacation in succeeding years. It will count in determining the length of vacation to which an employee, otherwise eligible, is entitled. (See Q&A #9)

Section 7. Employees on the Reserve Board are not eligible for Holiday Pay, Bereavement Leave, Jury Pay, and all other similar special allowances. Employees working on other territories (pursuant to Section 4 of this Article X) will be eligible for payment of these special allowances and may earn vacation for the following year the same as any other regular employee. (See Side Letter 9)

Section 8. Employees on the Reserve Board are covered by Health and Welfare Plans, Union Shop, Dues Check-Off, Discipline Rules and the Grievance Procedures that are applicable to employees in active service.

Section 9. It is understood that employees hired prior to the effective date of this Agreement who may be furloughed shall be eligible to place on the Reserve Board upon recall, seniority permitting. (See Side Letter #4, Part 1)

Section 10. It is understood the Reserve Board will not operate when all protected employees on the appropriate Seniority Roster on the date of this Agreement are placed on either a Guaranteed Extra Board position or a regular job; however, established reserve board positions will always be preserved.

Section 11. Based upon the operations involved the parties hereto have agreed the initial number of Reserve Board positions shall be thirty-three (33). This initial number shall be reduced by the number of employees protected under the Crew Consist Agreement of September 15, 1980, working on the effective date of this Agreement, and receiving a separation allowance as provided for in Article VIII of this Agreement. For every three employees hired after September 15, 1980, working on this territory on the effective date of this agreement, and accepting a buyout under Article VIII of this Agreement one reserve board position will be eliminated. (See Side Letters 13

Section 12. Reserve Board/second brakeman positions will not be occupied when employees hired after the effective date of this Agreement are working.