| Description: 
 
 AGREEMENTBETWEEN
 NEBRASKA CENTRAL RAILROAD COMPANY
 AND ITS EMPLOYEES
 REPRESENTED BY
 SHEET METAL, AIR, RAIL AND
 TRANSPORTATION INTERNATIONAL UNION -
 TRANSPORTATION DIVISION
 (SMART-TD)
 (Effective January 1, 2016)
 T ABLE OF CONTENTS
 ~
 PREAMBLE ......................................................................................................... .4
 ARTICLE 1 - Scope and Definitions ................................................................. .5
 ARTICLE 2 - Seniority Rule ............................................................................... 5
 ARTICLE 3 - Advertising and Filling Jobs ........................................................ 6
 ARTICLE 4 - Reduction in Force ....................................................................... 7
 ARTICLE 5 - Qualifications and Training Rule ............................................... 8
 ARTICLE 6 - Accepting Other Positions ......................................................... 10
 ARTICLE 7 - Forfeiting Seniority .................................................................... 10
 ARTICLE 8 - Probationary Period .................................................................. 10
 ARTICLE 9 - Leave of Absence ....................................................................... 11
 ARTICLE 10 - Discipline .................................................................................. 11
 ARTICLE 11 - Grievance and Arbitration Procedure ................................... 13
 ARTICLE 12 - Holidays .................................................................................... 14
 ARTICLE 13 - Vacations .................................................................................. 15
 ARTICLE 14 - Compensated Leave Days ......................................................... 16
 ARTICLE 15 - Bereavement Leave .................................................................. 16
 ARTICLE 16 - Jury Duty .................................................................................. 16
 ARTICLE 17 - Health and Welfare, Major Medical, and Dental Coverage.17
 ARTICLE 18 - Seniority Rosters ...................................................................... 17
 ARTICLE 19 - Transportation Specialist Extra Board and Vacancies ......... l7
 ARTICLE 20 - Medical Examinations ............................................................. 20
 2
 ARTICLE 21 - Rates of Pay .............................................................................. 21
 ARTICLE 22 - Class "A" Commercial Driver's License ............................... 21
 ARTICLE 23 - Expenses ................................................................................... 21
 ARTICLE 24 - Rules Exams, Training, and Attending Company Business.22
 ARTICLE 25 - Union Shop ............................................................................... 22
 ARTICLE 26 - Moratorium ............................................................................. 23
 SIDE LEITER NO. 1 .......................................................................................... 24
 3
 PREAMBLE
 A. The following Agreement, between the Nebraska Central Railroad Company
 ("Carrier") and its employees represented by the Sheet Metal, Air, Rail and Transportation
 International Union - TranspOliation Division ("Organization" or "SMART-TD"), recognizes that
 the shOli line railroad industry has grown and thrived, because the short line carriers have provided
 responsive and personalized service to their shippers.
 B. The parties to this Agreement agree that the fundamental objective of the railroad,
 its management and employees is to provide service to its customers in the most efficient manner.
 Accordingly, the parties agree that in interpreting and implementing this Agreement, paramount
 emphasis shall be placed on interpretations that enhance providing efficient service to customers.
 C. This Agreement is intended to be based on cooperation between the Carrier and its
 employees, to satisfy the objectives stated in Paragraph B in a manner that will provide long-term
 benefits to each of them.
 D. In the event that any Federal or state legislation, governmental regulations or court
 decisions cause invalidation of any portion of this Agreement, such tenn or provision shall be void
 and of no effect. All other tenns and conditions of this Agreement shall remain in full force and
 effect.
 E. The right to make and interpret contracts covering rules, rates of pay and working
 conditions on behalf of employees covered by this Agreement shall be vested in the regularly
 constituted General Committee of the Organization.
 F. Where the tenn Organization appears herein, it shall be understood to mean the duly
 elected Officers or General Committee of the Sheet Metal, Air, Rail and Transportation International
 Union- Transportation Division ("SMART-TD"). Where the term "designated Company Officer"
 appears, it shall mean the officer of the Company who has been designated, by the Company, to
 handle such specific matters.
 G. The use of such words as "he", "his" and "him", as they appear in this Agreement,
 are not intended to restrict the application of the Agreement or a particular rule to a particular
 sex, but are used solely for the purpose of grammatical convenience and clarity.
 H. The provisions herein shall be applied without discrimination based on race, color,
 creed, religion, national origin, age or sex.
 1. This agreement shall constitute a Labor Agreement between the Carrier and the
 organization and shall be uniformly applied to all Employees, as defined below.
 Therefore, in consideration of the mutual promises and agreements herein
 contained, the parties mutually agree as follows:
 4
 ARTICLE 1
 Scope and Definitions
 (a) The tenn "Transportation Specialist", as used in this Agreement, refers to
 persons, other than transportation supervisors, who work the preponderance of their time in
 train or engine service, and who are represented by SMART-TD. Transportation Specialists
 will perfonn primary and incidental duties related to the operation of trains by the CatTier,
 except as otherwise provided for in this Agreement.
 (b) "Mechanical Specialists", as used in this Agreement, refers to persons
 primarily involved in the repair, maintenance or rehabilitation of the Carrier's rolling stock
 and the equipment, facilities and physical plant associated with these activities, and who are
 represented by SMART-TD.
 (c) "Maintenance of Way Specialists", as used in this Agreement, refers to
 persons primarily involved in the repair, maintenance or rehabilitation of the Carrier's rightof-
 way and physical plant, and the machines, equipment and facilities associated with those
 activities, and who are represented by SMART-TD.
 (d) The term "Employee", as used in this Agreement, refers to all of the persons
 identified in paragraphs (a), (b) and (c) above.
 (e) Nothing in this Agreement may be construed to limit the Carrier's right to
 contract out the above-named work when (i) the Carrier lacks sufficient, qualified forces to
 perform the work in question, (ii) the Carrier lacks sufficient, qualified supervision to perform
 the work in question, (iii) the Carrier does not have the equipment necessary to perfonn the
 work in question, or (iv) the work must be completed within a time frame that cannot be
 accomplished using the Carrier's forces.
 ARTICLE 2
 Seniority Rule
 (a) All Employees covered by this Agreement will be placed on a single
 seniority roster in the order of their date of hire. The roster will include codes to indicate the
 category or categories of service the Employee is qualified to perform.
 (b) The seniority standing and rights of each Employee will begin on the date
 and time they perform service for the Carrier. In cases where two or more Employees hired
 after the beginning of the Carrier's operations have the same seniority date, their seniority
 standing will be determined by their starting time on duty on that date or if identical, then by
 date of birth, with the older person shown first.
 (c) Employees will not be permitted as a matter of right to bid into a position for
 which they are not qualified; however, the Carrier may temporarily assign an employee to a
 position for training purposes or where necessary for the efficient operation of the railroad.
 5
 (d) Service performed in accordance with paragraph (c) above will not provide
 a basis to establish seniority under this Agreement.
 ARTICLE 3
 Advertising and Filling Jobs
 (a) The Carrier will bulletin regular assignments at its discretion, by posting
 notices at on-duty points, which show: starting time, on duty point, rest days; general
 description of duties to be perfonned; and Carrier official to whom bids should be submitted.
 (b) New assigmnents or assigmnents that become open pennanently will be
 bulletined for a total of five (5) calendar days as permanent positions.
 (c) An Employee desiring to be considered for a posted position shall execute
 the appropriate job bid fonn, deliver it to the proper supervisor and retain a copy for his own
 records. all such fonns will then be reviewed, and the position filled by the senior qualified
 Employee submitting proper bid.
 (d) Employees can voluntarily move from their assigned positions only by (i)
 bidding on a bulletined position or (ii) exercising their seniority, effective on the first day of
 the work week of a job to which exercising seniority ("Starting Date"). Bids under this
 section (d) must be submitted to the Carrier at least 48 hours before the Starting Date, and
 may not be made more frequently than every 180 days.
 (e) One Employee may exercise his seniority to a temporary vacancy, which will
 be defined as a vacancy of not more than thirty (30) days or a vacancy of unknown duration,
 for which he is qualified. Bulletins will be posted in advance ofthe vacancy when it is known
 a vacancy will exist. Vacancies created by a person exercising his seniority in accordance
 with this paragraph will be filled from the extra boards. All temporary assigmnents will cease
 on the return of the absent Employee, and all Employees holding temporary assigmnents will
 revert to their regular assigmnent.
 (f) The Carrier will rebulletin any assigmnent where the starting time will be
 pennanently changed by more than two hours. In an emergency or other condition beyond
 the control of the Carrier, staring times may be temporarily changed without bulletining.
 (g) The senior qualified Employee making application for a position opening
 will be assigned. If there are no bids received for a position from any qualified Employee,
 the junior qualified Employee on the seniority roster may be required to accept the position
 or assigmnent.
 (h) Employees displaced on account of a position being abolished or displaced
 bya senior Employee may displace a junior Employee holding a position for which the senior
 Employee is qualified.
 6
 (i) An Employee displaced from his assigrunent must exercise his seniority as
 near as possible to 16 hours before the starting time of the position to which the seniority is
 exercised, and within 48 hOllrs of the occllrrence which necessitated the displacement. The
 Carrier will notifY the Employee displaced as promptly as possible.
 U) A job that is worked five (5) consecutive days with the same starting time
 each day will, at the end of the fifth day, be bulletined as a regular assigmnent.
 NOTE: Should the Organization believe that the Carrier is not establishing
 regular assigmnents under the requirements and intent of this paragraph U), the
 General Chainnan may request a meeting with the Chief Operating Officer. The
 meeting will be held as promptly as possible.
 (k) In the event a job is abolished, employees assigned to the job will be given
 twenty-four (24) hours' notice of the abolishment. Notice also may be given prior to the
 end of the last shift worked.
 ARTICLE 4
 Reduction in Force
 (a) When the force is reduced, junior Employees shall be demoted or furloughed
 in reverse order of seniority, unless doing so would deprive the CalTier of a person qualified
 to perfonn service essential to the operation of the railroad and who is being used to perform
 such service, in which case the next junior Employee lacking that qualification shall be
 furloughed. The Carrier will promptly notify the Organization of any force reductions made
 under this Article.
 (b) When the force is increased, furloughed Employees will be recalled in
 seniority order, subject to being qualified to hold the position for which recall is being made,
 and will retain their original seniority dates and standing.
 (c) The CatTier will initially contact furloughed Employees by phone to advise
 them of their recall. The Employee will advise the Carrier of the tentative date, subject to the
 limitation below, on which he will return to service. The Carrier will send written
 documentation of the phone call and the tentative date on which the Employee will return, by
 registered mail, return receipt requested, to the Employee. If the Employee is not available
 to receive the Carrier's phone call, the Employee will be sent a notice of recall by registered
 mail, return receipt requested, to the last address of record. The Employee must contact the
 Carrier within three (3) days from (I) the date the furloughed Employee receives notice of
 recall by registered mail, return receipt requested, or (2) the date upon which such mail is
 first attempted to be delivered but remains unclaimed or unaccepted. Employees recalled in
 accordance with this Article will return to work within ten (10) working days after contacting
 the Carrier.
 7
 (d) Until the Employee reports for duty in accordance with paragraph (c) above,
 the Canier may fill the vacancy with a qualified, active employee, if available.
 (e) A copy of the recall notice will be furnished to the Organization. If the
 Carrier has not been contacted by the Employee by the third day, it will notify the
 Organization of that fact.
 (f) Furloughed Employees are required to keep the Canier and the Organization
 currently infonned of the pennanent or temporary address and phone number at which they
 can be located; failure to do so or failure to report for duty within the time designated in the
 preceding paragraph will result in forfeiture of seniority and all employment rights.
 ARTICLES
 Qualifications and Training Rule
 (a) Transportation Specialists
 (1) New hires training to become Transportation specialists must
 successfully complete the requirements and pass the examinations to become
 a certified conductor (TS2) within one-hundred twenty (120) days in active
 service from date of hire. New hires that fail the first attempt to pass the
 examinations to become certified conductors will be given an additional 60 days
 in active service to pass the examinations on a second attempt. New hires
 failing to pass the conductor certification examinations on the second attempt will
 have their employment tenninated. A new hire who has failed the second attempt
 may appeal his tennination to the Canier's Chief Operating Officer for review
 and assessment of the new hire's training and testing. The decision of the Chief
 Operating Officer will be binding upon all parties.
 (2) Upon the request of a new hire that is experiencing difficulty
 during the first 120 days of training or the additional 60 days referenced
 above, the local chairman will be granted a meeting with the training
 supervisor and the new hire to review the areas of deficiencies and any
 written reports pertaining to that new hires training experience.
 (3) Transportation Specialists certified as conductors (TS2's) will be
 required to obtain their engineer's certification at the earliest opportunity offered
 by the Canier and maintain their conductor's and engineer's certification
 throughout their period of employment by the Canier.
 (4) Employees who successfully pass the engineer's certification
 examination will be paid a one-time payment offive hours at the TS3 rate.
 (5) The Carrier will provide training to Transportation Specialists on all
 motive power or remote control devices introduced into the Carrier's operation.
 8
 (6) Any employee hired as a Transportation Specialist who fails to pass
 the engineer's certification examinations wiJl automaticaJly forfeit aJl seniority as
 a Transportation Specialist; however, if an opening exists in mechanical or
 maintenance for which qualified, the employee may take that position, otherwise
 aJl seniority is forfeited.
 NOTE: PeriodicaJly, upon his request, the local chairman will meet
 with the appropriate carrier officer to review the content and
 structure of the Conductor and Engineer Certification programs for
 his input and recommendations.
 (b) Mechanical and Maintenance of Way
 (I) a . When the Carrier anticipates a need for additional qua Ii fi ed
 employees in the classes of MW2, MW3, MC2 , or MC3, or a
 "pennanent vacancy" exists in any of those classes of service, not ice will
 be posted in accordance with Article 3 of this agreement. Ifno bids are received
 from qualified employees, the most senior non-qualified employee working in
 that craft making application wiJl be awarded the assigmnent.
 b. Employees receiving qualification training after awarded a
 position under a. above must become qualified on the position within 30 working
 days from the date qualification training begins, or revert back to their previous
 assigrunent. The Carrier may elect to temporarily hold an employee on hislher
 current assigmnent (held at time bid is made) until such time as a qualified
 replacement is available to fiJI hislher vacancy, but not exceeding 30 working
 days.
 (2) Employees who wish to become qualified for a specific position and choose
 not to become qualified in accordance with the provisions of either paragraphs
 (I) a. or b. above, may submit a written request and receive the qualification
 training without compensation during their non-working hours. Employees
 electing to become qualified in this manner must become qualified within 180
 calendar days from the date request was submitted.
 NOTE: An employee who has failed to qualify on a position under this
 paragraph (b) may appeal to the Carrier's Vice President of Operations for
 review and assessment of the qualification process. The decision of the
 Vice President of Operations wiJl be binding upon all parties.
 (c) General
 (I) Employees wiJl be given the opportunity to cross train on other jobs, in
 seniority order, as the Carrier determines is necessary for the efficient operation
 of the railroad.
 9
 (2) The Nebraska Central Railroad Company (NCRC) encourages promotion
 and advancement of its employees and has developed programs for Train Service
 personnel. Carrier will post a bulletin to notify employees of training
 opportunities.
 ARTICLE 6
 Accepting Other Positions
 (a) An employee who is promoted to an official position with the Carrier or a full
 time position with the Organization will continue to accumulate seniority. Effective April 1,
 20 II, all employees who occupy an official position with the carrier are required to pay a fee
 to SMART-TD in order to retain and accumulate existing seniority in a craft. The fee shall
 be equal to the normal monthly assessment levied on dues paying members for the craft in
 which seniority is held.
 (b) An Employee who retums to service under this Agreement after perfonning
 service under paragraph (a) above must contact the Carrier within three (3) days
 from the date on which he ceases to hold such official position to advise the carrier
 of his intentions. The employee will retum to work within ten (10) working days
 after contacting the Carrier, unless additional time is requested and approved by
 the Carrier. Upon rehlm to service, the Employee will exercise his seniority to a
 position held by ajunior Employee or to an existing vacancy.
 ARTICLE 7
 Forfeiting Seniority
 (a) An Employee who leaves the service of the Carrier of his own accord
 shall forfeit his seniority rights and shall not be reinstated. If he is reemployed by the
 Carrier, his seniority rights shall date from the date and time he first performs service
 for the Carrier after reemployment.
 (b) An Employee who is discharged from service for cause shall forfeit all
 seniority rights; however, this rule will not prevent, upon mutual agreement of the
 Carrier and the organization, the reinstatement of such Employee with seniority rights
 unimpaired, whether or not an appeal has been made under the provisions of Article 10
 hereof.
 ARTICLE 8
 Probationary Period
 Applications for employment will be approved or disapproved by the Carrier
 within a probationary period of ninety (90) calendar days following the day an
 10
 employee first perfonns service with the carrier. A working day, for purposes of this
 Article, will be defined as any day on which an employee reports for duty and performs
 service. An application that is rejected within this period will result in tennination of
 the employee's relationship with the Carrier without application of the discipline,
 grievance or arbitration procedures of Articles 10 and II. During this probationary
 period, employees will not be eligible for the benefits provided in Articles 13, 14, 15
 and 16; however, when an employee successfully completes his probationary period,
 he will be given credit for all of that time for purposes of calculating benefits under this
 Agreement.
 ARTICLE 9
 Leave of Absence
 (a) Employees may be granted a leave of absence of up to ninety (90) days
 without pay, upon the approval, and in the discretion of the Carrier. An Employee
 granted such leave will sign a copy of the written authorization and return it promptly
 to the Carrier.
 (b) Employees engaging in Organization committee or legislative work
 including, Local, General or International officers, will, upon request describing the
 nature of their work, be granted a leave of absence, in writing, for the period so
 engaged. An Employee granted such leave shall sign a copy of the written
 authorization and return it promptly to the Carrier.
 (c) Except as provided in paragraph (b) above, an Employee on leave of
 absence from the Carrier may not perfonn compensated service for another employer,
 unless approved by the Carrier and the Organization in advance.
 ARTICLE 10
 Discipline
 (a) Investigation.
 Subject to the following, Employees who have completed their probationary period
 shall not be disciplined without just cause and without a fair and impartial
 investigation. The Employee will be notified in writing of the charge against him
 within ten (10) days after the occurrence on which discipline is to be based or after
 the Carrier Officer authorized to take action under this Article has or reasonably
 should have had knowledge of the incident. The investigation will be conducted by
 a Carrier Officer (the "Discipline Officer") with the Employee and the SMART-TD
 local chairperson or the SMART-TD local chairperson's designee, if desired, in
 I I
 attendance. Each of the parties may have witnesses present at the investigation.
 Employees required by the Carrier to attend an investigation as witnesses during
 regular assigned hours will be made whole for time lost. Employees required by the
 Carrier to attend investigations commencing outside their assigned hours will be paid
 on a minute basis at the current rate of their regular assigrunent for the greater of (i)
 two hours payor (ii) actual time spent attending the investigation. If di scipline is
 assessed, upon request by the Employee, a written, complete and accurate transcript
 of the proceedings shall be prepared and provided by the Carrier to the Employee or
 his designee as promptly as possible. The Employee will be notified, in writing, of
 the discipline to be assessed, if any, as soon as practicable, but not more than thiliy
 (30) after the completion of the investi gation or at such other time as the Carrier and
 the Organization shall mutually agree.
 (b) Waivers of Investigation.
 I. An Employee notified to appear for investigation shall have the option,
 prior to the hearing, to meet with the appropriate Carrier Official and the
 SMART-TD local chairperson or the SMART-TD local chairperson's
 designee, to discuss the act or occurrence and the Employee's
 responsibility, if any.
 2. When the Discipline Officer deems it appropriate, in situations such as
 but without limitation, where the severity of the offense or the
 Employee's record of discipline do not warrant di scipline of dismissal,
 the Discipline Officer may offer the Employee under charge the
 opportunity to waive his right to an investigation and accept discipline of
 a specified amount.
 3. If a disposition of the charges is made on the basis of the Employee's
 acknowledgment of responsibility, the disposition shall be reduced to
 writing and signed by the Employee and the official involved and shall
 incorporate a waiver of hearing and shall specify the full extent of
 discipline which will be imposed for the Employee's acceptance of
 responsibility.
 NOTE: The tern1 "the SMART-TD local chairperson's designee"
 as used in paragraph's (a) and (b) above refers to and shall be
 interpreted to mean a person elected to a position with SMARTTD.
 (c) Holding Employees Out of Service. In cases management determines
 to be serious (such as, but not limited to, theft, altercation, GCOR 1.5
 violations, insubordination, major accidents, serious misconduct, etc.)
 and when required by application of federal regulations governing the
 conduct of railroad operations, Employees may be withheld from
 service. It is understood that any Employee held out of service under
 12
 this Article 10 who, as a result of the investigation, is found not to have
 committed the offenses charged will be reinstated immediately and paid
 for time lost, including time spent attending the investigation.
 (d) Appeals.
 (I) If the Employee desires to appeal the discipline assessed as a
 result of the investigation, a written appeal will be made to the highest
 designated Company Officer (the "Appeal officer") within thirty (30)
 calendar days from the date the discipline was assessed.
 (2) A conference will be held between the Organization and the
 Appeal Officer within thirty (30) days from receipt of the appeal.
 (3) If the Appeal Officer detennines that an Employee has been
 unjustly disciplined or dismissed, such discipline shall be set aside and
 removed from the Employee's record. The Employee shall be reinstated
 with his seniority rights unimpaired, and shall be compensated for wage
 loss, if any, suffered by him, resulting from such discipline or
 suspension, less any amount he earned during the period of discipline.
 (4) If the issue is not resolved in conference, the Appeal Officer's
 decision will be final and binding unless within six (6) months of the
 date ofthe Appeal Officer's written decision, either party has progressed
 the dispute to arbitration by a tribunal having jurisdiction to dispose of
 such claims.
 (e) Time Limits. Any of the time limits shown in this Article may be
 changed by mutual agreement of the parties, which shall not
 unreasonably be withheld.
 ARTICLE 11
 Grievance and Arbitration Procedure
 (a) An Employee who believes he has a claim or grievance must notify the
 Carrier Official involved in such violation at the time it occurs. All claims or grievances
 must be presented in writing by or on behalf of the Employee involved to the officer of
 the Carrier authorized to receive same, within thirty (30) days from the date of
 occurrence on which the claim or grievance is based. The claim must state the names
 of the Employees involved, the rule of the Agreement upon which the claim is based,
 the date and time of the incident, the Carrier Official notified of the violation and all
 relevant facts in support of the claim.
 13
 (b) Should any such claim or grievance be disallowed, the Carrier shall
 within thirty (30) days from the date same is filed, notify the Employee or his
 representative in writing of the reasons for such disallowance. If not so notified, the
 claim or grievance shall be considered valid and settled accordingly, but this shall not
 be considered as a precedent or waiver of the contentions of the Carrier as to other
 similar claims or grievances.
 (c) If a disallowed claim or grievance is to be appealed to the highest
 officer designated to handle claims or grievances ("Appeal Officer"), such appeal shall
 be taken within sixty (60) days from receipt of notice of disallowance from the first
 officer of the Carrier.
 (d) A conference shall be held with the Appeal Officer within 30 days of
 receipt of the appeal, or at such time as the parties may mutually agree. Following
 conference, the Appeal Officer must notify the Organization, in writing, of his decision
 within 60 days from the date of conference.
 (e) If claims denied by the Appeal Officer are to be progressed,
 proceedings must be instituted within six (6) months by the Employee or his
 representative before a tribunal having jurisdiction pursuant to law or agreement of the
 claim or grievance involved.
 (f) The Carrier and the Organization will each provide the other with the
 names and addresses of the individuals authorized to handle claims or grievances to
 each successive level of the process defined by Article 10 and 11.
 (g) Any of the time limits show in this Article may be changed my mutual
 agreement of the parties, which shall not unreasonably be withheld.
 ARTICLE 12
 Holidays
 (a) The carrier recognizes the following days as paid holidays: New
 Year's Day, Good Friday, Memorial Day, Independence Day, Labor Day,
 Thanksgiving Day, the day after Thanksgiving, Christmas Eve and Christmas Day. All
 holidays observed will be on the day Officially observed in the State of Nebraska. In
 addition, each employee shall receive their birthday as a holiday.
 (b) Holiday pay is computed as ten (10) hours' pay at the straight-time rate of
 the employee's last position worked. To be eligible for holiday pay, an employee must
 have worked, or been available for work in the case of an extra board employee, the
 last work day prior to and the first workday following the holiday. Employees who are
 on vacation or bereavement leave on those days are considered to have met this
 requirement and are eligible for holiday pay. If a recognized holiday falls on a day on
 which an employee is observing vacation, such employee shall be paid the holiday pay
 in addition to vacation pay for the day.
 14
 ARTlCLI!: 13
 Vacations
 (a) Employees who qualify will receive paid vacation time on the following
 schedule: After 1 year of service 2 weeks (10 working days)
 After 5 years of service 3 weeks (IS working days)
 After 10 years of service 4 weeks (20 working days)
 (b) Once an Employee becomes eligible under Article 8 - Probationary
 Period for vacation, the first date of service will be used to calculate his vacation
 entitlement. Vacation time cannot be accumulated from year to year, and there will be
 no pay for vacation in lieu of time off without the prior approval of the Carrier.
 (c) To be eligible for the full amount of vacation pay shown above, an
 Employee must have earned 200 vacation credits in the preceding calendar year. One
 (I) credit is earned for every completed tour of duty in which an Employee performs
 compensated service for the carrier.
 (d) An Employee who has qualified for the full vacation pay will be paid ten
 (10) hours' pay at the straight-time rate of the Employee's last position worked for each
 vacation day taken, either in one week (five consecutive calendar days) or one-day
 increments (no more than five days may be taken in one-day increments).
 (e) An Employee who does not qualify for the full vacation pay may elect
 between receiving (i) a pro-rated number of vacation days, calculated by multiplying the
 number of vacation days applicable to his years of service ("Applicable Days") by a
 fraction, the numerator of which is the number of vacation credits actually earned and
 the denominator of which is 200 ("Vacation Ratio") or (ii) the full number of Applicable
 Days paid at the Employee's current rate of pay multiplied by the Vacation Ratio.
 Example: An Employee has more than 10 year of service, which would entitle
 him to 4 weeks of vacation. His regular current rate of pay is $12.00 per hour.
 However, he earned only 100 vacation credits in the previous year. In the current
 year, he may elect to either (1) take 2 weeks of vacation (100/200 x 4 weeks) at
 his current rate of payor (2) take 4 weeks of vacation at $6.00 per hour (half of
 his current rate or $12.00 x 100/200).
 (t) Vacation requests from those who qualify in a given calendar year, must
 be submitted in writing to the Employee's department supervisor no later than December
 15 of the prior year. Senior Employees will have priority if duplicate requests for the
 same vacation times are received. When submitting requests, Employees should include
 at least three (3) choices in case of duplicate requests.
 15
 (g) All vacations will commence at the begitll1ing of the tour of duty for the
 employee's designated work week and will ordinarily continue for that full week.
 However, an employee may be permitted to take up to one week of vacation one day at a
 time, and vacation taken in this manner need not be requested under paragraph (f) above.
 The Carrier will have the right to determine the feasibility of any request which may
 interfere with the Carrier's service or operations. (In this regard, a request for vacation of
 less than one week will be considered after requests for vacation of one week or more.)
 ARTICLE 14
 Compensated Leave Days
 Employees will be granted up to six (6) compensated leave days per calendar
 year. Days not used in a calendar year will be accumulated up to 18 days for use in
 future years. Compensated leave days under this Article 14 will be paid at ten (10) hours
 per day at the straight-time rate of the employee's last position worked.
 ARTICLE 15
 Bereavement Leave
 (a) Bereavement leave is designed to allow an Employee time off when a
 death occurs in the immediate family. An Employee may be given a leave of up to three
 days with pay, calculated at the straight-time daily rate of the last assignment.
 (b) For purposes of this policy, the immediate family is defined as the
 Employee's spouse, child, parent, parent-in-law, grandchild, brother or sister, stepchildren,
 sister or brother- in-law, daughter or son-in-law and grandparents.
 (c) The days ofleave for which an Employee shall be paid will be limited to
 those days on which he is regularly scheduled to work (in the case of extra board
 Employees, those days on which he is protecting the board and has not already worked 5
 days during the work week) and does not work because he is arranging for, traveling to
 and from or attending the funeral. No pay will be granted to Employees for this purpose
 who are already on vacation, leave of absence, lay- off or paid holiday.
 ARTICLE 16
 Jury Duty
 (a) Subject to paragraph (b) below, employees who serve on jury duty will be paid the
 difference between the amount paid by the court for such service, and the amount of their nonnal
 straight-time pay that would have otherwise been earned. No pay will be granted if an Employee
 is on leave of absence, lay-off or vacation.
 16
 (b) Employees who are required to report at court but who are not selected on any
 given day must report available for duty as soon as excused on each day. The Employee will then
 be used or not used for service on that day, depending on the needs of the service and in accordance
 with applicable law. An Employee failing to report available will not be paid in accordance with
 paragraph (a) above.
 (c) Employees required to attend court, coroner's inquest or give depositions at the
 request of an official of the Carrier, will be paid for actual time lost and reimbursed for actual
 expenses.
 ARTICLE 17
 Health and Welfare, Major Medical, and Dental Coverage
 (a) Employees will be covered by the Group Health Benefit Plan of the Nebraska
 Central Railroad Company (the "Plan"). A booklet outlining the coverage available can be
 obtained from the general office. Employees must first meet the qualifying criteria as described
 in The Plan before they can become eligible to receive benefits.
 (b) Employees will be permitted to obtain optional family medical and dental
 coverage under the Plan in accordance with the Plan requirements at their own expense.
 (c) Should an Employee fail to qualify for coverage du.ring a calendar month, he will
 be afforded the ability to continue coverage under the Plan by paying the entire premium cost.
 ARTICLE 18
 Seniority Rosters
 A seniority roster, in the form attached hereto as Exhibit A, shall be prepared as of January
 I of each year and the revised rosters shall be posted on bulletin boards in convenient places and
 copies of such rosters shall be furnished to the Organization. All appeals from new or revised
 roster dates shall be made within thirty (30) days from the date of posting of the seniority roster
 on which the new or revised date shall first appear. Protests may be made only for changes made
 from the prior year's roster. If any Employee is absent due to being on leave of absence or by
 reason of sickness, injury or other unavoidable cause at the time the roster is posted, his time to
 appeal there from shall be limited to thirty (30) days after he first returns to work.
 ARTICLE 19
 Transportation Specialist Extra Board and Vacancies
 (a) Transportation Specialists' extra board(s) may be established at the Carrier's option
 at Oconee/Columbus, Grand Island, and Norfolk. Upon 90 day's advance notice, the carrier may
 17
 establish additional extra boards to suppOli assignments that have been established at new locations
 to support business opportunities. Upon serving such notice, the Carrier and the Organization will
 meet and agree upon any matters such as temporary driving allowances or a one-time relocation
 stipend for any employee in service as of the date of this agreement who is forced to relocate to
 the new extra board location.
 (b) A Transportation Specialist assigned to an extra board will be required to protect
 a vacancy for which he is qualified. The Carrier will notify the Organization in advance of any
 additions to, or deletions from , the extra board.
 (c) Employees called to fill vacancies from the extra board will, to the extent possible,
 be given a two-hour call in advance of the staliing time of the assignment.
 (d) When two or more extra board employees are called for ajob, the employee(s) with
 more seniority will have the choice of which position they want to work as long as they are: (I)
 qualified for that position and (2) all positions for the job are properly covered by qualified
 individuals.
 (e) Employees who are subject to call must be accessible by telephone or beeper. They
 must advise the Carrier of the phone number at which they can be reached, and when on call, notify
 the Carrier of any change.
 (f) When an Employee is called and reports for duty, and for any reason other than his
 own fault, is not used, he will be allowed two (2) hours' payor the actual time held, if greater than
 two hours, at his current rate.
 (g) If an Employee is paid less than four hours under this Article and performs no
 service, then he will be restored to his previous position on the extra board. If an employee
 performs service or is paid four or more hours under this Article, he will be placed at the bottom
 of the extra board.
 (h) The work week for extra board Employees will begin at 12:01 a.m., on Monday.
 (i) When a vacancy occurs for a Transportation Specialist and no other Transportation
 Specialists are available to work, if a manager, contractor or employee whose normal duties are
 not those of a Transportation Specialist is used, the other Transportation Specialist on the
 assigrunent will have the choice of which position to work. If the TS works a higher rated position,
 that employee will be paid the higher applicable rate.
 NOTE: The Company shall hire and maintain a sufficient number of
 Transportation Specialist employees to meet the needs of the service. It is not the
 intent of the parties to utilize non-TS individuals in lieu of hiring a sufficient
 number of TS employees. If the occasional use of non-TS employees exceeds the
 intent set forth above, the parties agree to meet and resolve the matter in accordance
 with the terms set forth in this note.
 18
 ARTICLE 20
 Medical Examinations
 (a) Should employees coming within the scope of this Agreement be required to take
 medical examinations, such examinations will not be more frequent than once each year, unless in
 the opinion of their supervisory officers, the Employees' health or physical condition is such that
 an examination should be made for the purpose of detennining if the Employee is able to perfonn
 service. Examinations required under this Atticle will be paid for by the Carrier.
 (b) If an Employee is disqualified following an examination by the CalTier's physician
 and feels that such disqualification is not warranted, the Employees may consult his own physician.
 If the Employee's physician does not agree with the medical diagnosis of the Canier's physician,
 the two physicians will agree upon a specialist in the field involved in the di squalification who
 will examine the Employee. The detennination of the third physician shall be final and binding
 upon the parties, and the cost of the examination shall be shared equally by them. If the
 detennination of the third physician is that the Employee should be returned to work, the CalTier
 shall be liable for any time lost from work by the Employee between the time of its receipt of the
 third physician's opinion and its offer of work to the Employee. (It is the responsibility of the
 Employee to keep the CalTier infonned of a cUlTent telephone number where the Employee can be
 reached.)
 ARTICLE 21
 Rates of Pay
 (a) Employees covered by this Agreement will be paid on an hourly basis for time actually
 worked, except as provided below.
 (b) Effective the first day of the month following notification of ratification, the then existing
 hourly rates of pay shall be increased to the rates shown below:
 Position Craft Hourly rate effective
 TS3 Engineer or Remote Control Operator $19.42
 TS2 Conductor $18.07
 MW3 Foreman $18.73
 MW2 Machine Operator or Mechanic $17.08
 MWI Laborer $15.59
 MC3 Locomotive Mechanic or Cannan $18.73
 MC2 Car Inspector $17.08
 MCI Laborer $15.59
 All classes Trainee $15.18
 19
 (c) Effective January 1, 2017 and each January I thereafter, the hourly rates then in effect for
 each position listed in (b) above will be adjusted by a percentage equal to the actual
 percentage adjustment in allowances paid to the Carrier by the Union Pacific Railroad in
 the prior year.
 (d) With respect to the potential increases for January 1, 2018 and January I, 2020, if the
 increase contemplated by (c) above does not produce an increase of at least $.25 per hour
 for any position listed in (b) above, the hourly rates then in effect for that position shall be
 increased by $.25 per hour.
 (e) All Employees, other than trainees, who are available for and accept all work offered
 throughout the work week (Sunday through Saturday) will be compensated a minimum of
 50 payroll hours per week at the applicable hourly rate. If an employee is not available or
 refuses work when called, the employee shall be compensated for actual hours worked
 during the work week at the applicable rate.
 (f) Employees in all classes of service will be required to work at the highest level position for
 which qualified, seniority pennitting, (unless restricted by the Carrier) in order to receive
 the higher rate. A qualified employee who chooses to work a lower rated position when a
 higher rated position is available will be paid the position rate worked.
 (g) Employees covered by this Agreement will be paid the Christmas bonus and profit sharing
 in the same manner as it is paid to other Carrier employees not covered by the Agreement.
 (h) Transportation Specialists will receive an additional $3.00 per hour for their time spent
 working alone (a single-person assignment or without another crew member) with a remote
 control device.
 (i) Maintenance of Way employees assigned to operate an Excavator, Payloader, or Backhoe
 on any work day will be paid at least the MW2 rate of pay for that entire tour of duty
 regardless of the amount of time consumed operating the machine. The senior qualified
 employee will be given the first chance to operate this equipment.
 NOTE: Should the Carrier purchase or lease any other large industrial machine not listed
 above, at the request of the Organization, the Carrier will meet to discuss the application of
 paragraph (i) to such new machine.
 (j) Maintenance of Way and Mechanical employees will be called out for emergency work in
 seniority order, if available. Maintenance of Way and Mechanical employees called out in
 an emergency who work four (4) hours or less will be paid four hours at the applicable rate.
 Maintenance of Way and Mechanical employees called out in an emergency who work
 more than four (4) hours will be paid for actual time worked at the applicable rate.
 (k) Employees will be paid an allowance of $165 annually for the purchase of proper safety
 boots. Carrier will continue to provide safety gloves to employees.
 20
 ARTICLE 22
 Class "A" Commericial Driver's License
 (a) Upon presentation of proof of expenditures, the Carrier shall reimburse employees
 for all fees necessary to obtain a Class "A or B" CDL License for the first application.
 Once the CDL is obtained, subsequent additional endorsements required to maintain
 the license requirements will also be reimbursed.
 (b) Employees shall be permitted the use of an appropriate Can'ier or rented vehicle to
 take the CDL test provided that written request for the use of such vehicle is made to
 the employee's immediate supervisor no less than ten (10) working days prior to the
 CDL test.
 (c) When an employee with a CDL is assigned on any day to operate a vehicle requiring the
 driver to have a Class "A or B" CDL license, such employee will be allowed a $.25
 differential per hour. The differential will be paid for all hours in the tour of duty on that
 day regardless of time the vehicle is operated.
 (d) The CDL differential is not subject to future wage increases.
 ARTICLE 23
 Expenses
 (a) An employee required to stay overnight away from his on-duty point must be more than
 twenty-five miles from his on-duty point to be eligible for reimbursement for meals and
 lodging. When an employee is required to take lodging, the Carrier will pay for the
 lodging. The Carrier will make arrangements for direct billing of the lodging to the
 Carrier, or in such cases as an emergency or other matter where direct billing is not
 avai lable, the Carrier will reimburse the employee for his incUlTed lodging expense
 (room and tax only). Reimbursement for meal expenses will be made in the fonn of a
 $25 per diem payment for each day away from the employee's headquarters. No receipts
 will be required.
 (b) When an Employee is required to work away from his on-duty point, the Carrier will
 either provide transportation or reimburse for mileage if the Employee is authorized
 to use his personal vehicle. Mileage will be reimbursed at the current approved
 maximum rate as allowed by the IRS in effect at the time.
 21
 ARTICLE 24
 Rules Exams, Training, and Attending Company Business
 (a) Employees required to attend rules classes, rules examinations/certifications, training
 programs, seminars, safety meetings, give depositions, attended investigations as
 witnesses, or other carrier business will be compensated for the time engaged in such
 activities. If required to lose time, Employees will be paid an amount not less than
 what they would have earned on the assignment they would have worked. If no time
 is lost, Employees will be compensated for the actual time consumed in such activities
 at the straight time base hourly rate.
 (b) When an Employee is engaged in on-the-job training during his time off of his regular
 assignment, for purposes of becoming qualified in a new job, he will be paid his
 cun'ent rate of pay for the time spent training.
 ARTICLE 25
 Union Shop
 (a) It shall be a condition of employment that all Employees onhe Carrier covered by
 this Agreement who are members of the Organization in good standing and those who fe not
 members on the effective date of this Agreement shall, on or before the thirtieth (30t ) day
 following the effective date of this Agreement become and remain members in good standing in
 the Organization. It shall also be a condition of employment that all Employees covered by this
 Agreement and hired on or after its effective date, shall upon completion of their probationary
 period become and remain members in good standing in the Organization.
 (b) Each Employee, who properly registers an objection with the Organization, shall
 pay reduced fees in an amount sufficient to cover their share of expenses related to collective
 bargaining, contract administration, or other activities gelmane to collective bargaining.
 (c) The Carrier will within three (3) working days after receipt of notice from the
 Organization, suspend for a minimum of five (5) working days for the first occurrence in a calendar
 year and for thirty (30) days for the second and each subsequent occurrence in a calendar year any
 Employee who is not in good standing in the Organization as required by paragraph (a) or (b) of
 this Article. The Organization will indemnify the Carrier against any liability resulting from its
 compliance with this Article 23.
 22
 ARTICLE 26
 Moratorium
 a. This agreement modifies the Working Agreement between the parties and will
 remain in effect through December 31, 2020, and thereafter until changed or modified in
 accordance with the provisions ofthe Railway Labor Act, as amended.
 b. No party to this Agreement will serve any notice or proposal under the Railway
 Labor Act for the purpose of changing the provisions of this Agreement or the Working Agreement
 prim' to July 1,2020 to be effective no earlier than January 1,2021.
 c.
 interests.
 This Article will not bar the parties from agreeing upon allY subject of mutual
 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their
 duly authorized representatives as of this 29th day of August, 2016.
 FOR THE EMPLOYER:
 NEBRASKA CENT
 RAILROAD COMP
 d-r-' ~~ President
 FOR THE UNION:
 SMART-TD
 23
 Side Letter No.1
 Mr. Brent Leonard, General Chairman
 Smart-TD
 Dear Mr. Leonard:
 This will serve to confinTI our understanding during negotiations covering revisions
 to the Collective Bargaining Agreement between Nebraska Central Railroad Company and
 SMART-TO.
 Upon notification from the Organization that the membership has ratified the tentative
 agreement, the Carrier will arrange payment of a $1,800 signing bonus to each employee in
 active service within 30 days of such notification.
 If this properly reflects our understanding, please sign in the space indicated below.
 Very truly yours,
 /s/ Tres Meyer
 Tres Meyer
 Chief Operating Officer
 I CONCUR:
 /s/ Brent Leonard
 Brent Leonard
 24
 
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