ARTICLE V SEPARATION ALLOWANCE

Section 1. Beginning November 6, 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 Second and Third Seniority Districts 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 is as follows:

Hired between September 15, 1980 and

the effective date of this Agreement: —— $25,000

Employees protected by the Crew Consist

Agreement effective September 15, 1980: —— $50,000

Section 2 (a) Under this Article V, an employee eligible for a separation allowance is an employee holding seniority and performing service on the Second or Third Seniority Districts.

(b) Eligible employees applying for the separation allowance may elect to receive the allowance as follows:1) In one (1) lump sum payment.

2) In twelve (12) equal monthly payments, in addition to the following:

i) Career aptitude testing and assessment and career counseling provided by the company or at the company's expense.

ii) Reimbursement up to a maximum of

$3,000 for cost of tuition at an accredited college or university.

iii) Reimbursement up to a maximum of $2,000 for employee's use of employment search agency.

iv) If the employment search agency option is not selected, the $2,000 reimbursement may be utilized as a supplemental tuition aid, bringing maximum amount available for tuition aid to $5,000 (including the $3,000 maximum reimbursement described in "ii" above.)

3) In twenty four (24) equal monthly payments.

An employee electing to receive the separation allowance in equal monthly payments will receive the first payment thirty (30) days after he/she resigns. Each installment will come on a monthly basis thereafter.

(c) Any employee who wishes to accept the separation allowance in monthly installments must give the designated officer notice when making application.