ARTICLE VII PRODUCTIVITY FUND/SPECIAL ALLOWANCE

Section 1. For each tour of duty or trip operated on the Second/Third Seniority Districts with a crew consist of one (1) Conductor/Foreman and one (1) Brakeman/Yard Helper over the number of employees on the Reserve Board, the Company will pay into the appropriate Employees' Productivity Fund the sum of $55.00. For example/ if there were 10 Local and Extra Assignments, Yard jobs and Pool Turns, and 10 employees on the Reserve Board, no payments would be made. If there were a total of 10 Local and Extra Assignments, Yard jobs and Pool Turns, and 5 employees on the Reserve Board, payments would be made into the Employees' Productivity Fund for 5 Local and Extra assignments, Yard jobs and Pool Turns on a tour of duty/trip basis in accordance with the basic Crew Consist Agreement. (See Side Letter #28)

Section 2. The Productivity Fund payments will be distributed in accordance with the basic Crew Consist Agreement.

Section 3. The Special Allowance payments provided for in the basic Crew Consist Agreement will apply to crews operated with one (1) Conductor/Foreman and one (1) Brakeman/Yard Helper under this Agreement. The Special Allowance will be increased to $10.00 for employees hired prior to the effective date of this Agreement and is subject to all wage and COLA increases. For employees hired after the effective date of this Agreement/ the Special Allowance will be frozen at $8.12 and will not be subject to any further increases. (See Side Letter *17)