LODGING ALLOWANCE-LA SALLE

May 8, 1986

E- 013 - 23-41 -L (LaSalle)

Mr F. A. Garges

General Chairman, UTU(C&T)

7363 Pacific, Suite 201

Omaha, NE 68114

Dear Sir:

This is to confirm our various discussions concerning the lodging allowance to be paid at LaSalle, Colorado.

It was agreed that the allowance in lieu of lodging at LaSalle  which was authorized in the Carrier's letters of August II, 1972 and June IS, 1973, would be increased from $10.00 to $25.00. This payment also includes any driving allowances that employes would receive for driving their own  vehicles.

It further was agreed that the employes may elect to stay at the Holiday Inn and the Carrier would assume that cost. This increase shall become effective May I5, 1986.

If the foregoing  correctly sets forth our understanding,  please affix your signature in the space provided below.

Yours Truly,

W F Hillebrandt

General Manager/ED

W E NARO

Director-Labor Relations/ED

Accepted:

F A Garges – General Chairman UTU