| Description: 
 
 MEMORANDUM OF AGREEMENTbetween the
 UNION PACIFIC RAILROAD COMPANY
 and the
 UNITED TRANSPORTATION UNION
 (For The Former C&NW Lines Territory)
 Assigned Service Chicago-Clinton
 The Agreement dated October 31, 1998, titled “Assigned Service Chicago”,
 and identified as Agreement #2607319872; and the Letter of Understanding dated
 June 17, 2004, involving assigned service between Chicago and Clinton have been
 cancelled. This Memorandum of Agreement will replace the two agreements
 referred to above, with the modification contained herein.
 On the effective date of this Agreement, the Carrier may establish assigned
 service positions in the CTC which will operate concurrently with the pools in
 freight service between Chicago and Clinton.
 A. CTC to Clinton:
 1. Article II, B (8) of the UP/CNW Merger Agreement which specifies
 through freight service to be rotary pool freight service is amended to the
 extent through freight service from the CTC to Clinton may also include
 assigned service. Employees holding seniority in Eastern District No. 1 will
 protect this service.
 2. Employees in assigned service, as well as extra board employees filling
 vacancies, will still be governed under all the provisions of the UP/CNW
 Merger Agreement with the conditions in the existing schedule of agreements
 governing assigned service to also apply, specifically, but not limited to the
 following major points:
 (a) Assigned service positions will be bulletined indicating the train
 symbol(s) originating in the CTC, along with the assigned starting
 time and on duty point. It is understood an employee with an 11:00
 am starting time (for example) may be set back and departed after the
 next assigned employee with a 2:00 pm starting time (for example)
 with no runarounds applicable.
 (b) In addition to Proviso Yard, assigned service positions may also be
 established at Global 1. Employees assigned to Global 1 will report
 Assigned service Chi - Clinton
 for duty at Global 1, which will be considered their designated on/off
 duty point. Proviso extra board employees protecting assigned
 service at Global 1 will be required to use their personal automobiles
 for transportation from their residence to Global 1. Extra employees
 utilizing their personal vehicles will be compensated one (1) hour
 combined service, representing the transportation time between
 Proviso and Global 1. Extra employees will also receive the one (1)
 hour payment when going off duty at Global 1, which represents
 transportation time from Global 1 back to their normal off duty point
 of Proviso. Extra employees utilizing their personal vehicles to
 report on and/or off duty at Global 1 will be reimbursed for forty (40)
 miles, at the standard auto mileage allowance provided under the
 guidelines of the Internal Revenue Service.
 (c) Assigned service employees, as well as extra board employees
 protecting the vacancy of an assigned employee, upon arrival at
 Clinton will be placed in the existing away-from-home terminal pool
 for their return trip to the Chicago Terminal Complex.
 (d) Assigned service employees, as well as extra board employees
 protecting vacancies on these regular assignments, will not perform
 short turnaround service at Chicago or Clinton, except as provided
 below. If an assigned crew is first out at Clinton for short turnaround
 service, the Carrier will (without penalty), use the next rested crew.
 In the event there are no additional rested crews at Clinton for short
 turnaround service, a crew in assigned service may be used. If an
 assigned crew is utilized for short turnaround service at Clinton, the
 crew will be deadheaded back to Chicago at the completion of such
 service.
 (e) As stipulated in Sub-item (a) above, crews will have an assigned
 starting time and unless advised by Carrier of not less than two (2)
 hours prior to that time, the crew will automatically report to their
 assigned yard/location. Student engineers and/or student conductors
 assigned to train with an engineer and/or conductor in this assigned
 service will also be governed under this provision.
 (f) Employees in assigned service will notify the Crew Management
 Center upon tie up at Chicago if they are not rested for their next
 assigned starting time, due to the Hours of Service, or ifthey have tied
 up after the regular reporting time of their assignment. The Carrier
 will at that time set the assignments starting time back to the
 employee’s legal rest or deadhead the employee upon rest to Clinton.
 Assigned service Chi - Clinton
 3.
 The employee can, at the time of notification of set back or deadhead,
 decline the service, but the employee will not be made whole or
 provided any lost earnings as a result of the declination.
 (g) Employees in the Chicago to Clinton assigned service may be used on
 another train operating to Clinton, if their assigned train is not
 available or ready for departure.
 (a) An employee booking additional rest (over and above the time
 required under the Hours of Service Law) at either the home or awayfrom-home terminals will forfeit the right to deadhead in the opposing
 direction to protect the opposite leg of the assignment. Employees will
 not be made whole for any lost earnings resulting from “booking
 additional rest.
 B.
 (b) If an assigned employee is notified in Chicago of his/her assignment
 being annulled for a work day, the employee will upon legal rest, (or
 their regular reporting time, whichever is later), be deadheaded to
 Clinton for future train operations. The employee will have the
 option of declining this service, but the employee will not be made
 whole or provided any lost earnings as a result ofthe declination.
 (c) Assigned crews tied up at Clinton may be deadheaded to Chicago to
 protect their next assigned train, and no runaround claims will be
 progressed.
 (d) Except as set forth herein, all other agreement provisions with respect
 to assigned service will apply.
 General
 1. This agreement will become effective on July 30, 2004, and is made
 without prejudice to either party’s position and will not be cited as a
 precedent and/or an accepted practice in any future agreement and/or
 arrangement.
 2. It is understood this agreement does not require the Carrier to
 establish and/or maintain regular assigned service and, further, this
 agreement may be cancelled by any party’s signatory hereto with the serving
 of a thirty (30) day advanced notice. During the thirty (30) day period, the
 parties will meet to determine if the agreement should be, or can be,
 amended in order to remain in effect. If this is not possible, at the end of the
 thirty (30) day period, this agreement will be cancelled in its entirety.
 Assigned service Chi - Clinton
 Signed this 30'^ day of July, 2004, in Omaha, Nebraska.
 M. J. Reedy
 General Chairman - UTU
 T.M. Stone
 Director Labor Relations
 Assigned service Chi - Clinton
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