MEMORANDUM OF AGREEMENT UNITED TRANSPORTATION UNION (T&S) WEST UNION PACIFIC RAILROAD COMPANY

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MEMORANDUM OF AGREEMENT between UNITED TRANSPORTATION UNION (T&S) WEST and UNION PACIFIC RAILROAD COMPANY * * * * * * * * * * * * * From time to time there may be surplus of trainmen/switchmen in the Roseville Hub which results in one or more employees being unable to hold a regular or extra position. Because the implementation of the Roseville Hub resulted in a change of seniority districts, and in order that all concerned may understand the seniority process, the following will be implemented on an experimental basis: I THIS AGREEMENT IS: a) Only applicable to trainmen./switchmen in the Roseville Hub b) Without prejudice to the position of either party c) In effect for six months only. In the absence of a written agreement to extend or modify the provisions of this agreement, it shall cease to be effective as of 12:01 AM on the first (1 st ) or sixteen (16 th ) of a month which next occurs after the lapse of six months from the effective date. II BUMP BOARD AND CT BOARD a) Trainmen/switchmen who are notified of being cut off the extra board, or who are displaced and unable to hold anything at the location, will be placed to the bump board, either BT or BS, whichever is appropriate. During the 48 hours commencing with the time notified of being cut off the extra board, or notification of being displaced, such trainmen/switchman may displace a junior employee in active service as a trainman or switchman in the Roseville Hub. Employees on the BT or BS board may not displace to a bulletined vacancy, but may displace a junior employee who is holding a bulletined vacancy.

b) At the expiration of 48 hours, employees covered by section a) above will be removed from the BT or BS board and will be placed on a CT board. There will be one CT board at each of the following locations: i) Roseville ii) Oroville iii) Oakland iv) San Jose v) Martinez (Ozol) vi) Stockton vii) Fresno viii) Bakersfield ix) San Luis Obispo x) Dunsmuir xi) Klamath Falls xii) Portola xiii) Sparks xiv) Winnemucca c) Employees placed on a CT board will not be issued a letter or notification of being furloughed, but will no longer be able to displace an employee their junior in active service in the Roseville Hub until after they have been returned to active service on a regular or extra position in the Hub. Employees on a CT board may return to active service by any of the following three means: i) being successful bidder on a newly established position in the Hub; ii) acquiring a position in the Hub through the application process; or iii) being recalled to active service pursuant to Article IV of this agreement. d) Within five days of placement on a CT board, an employee may elect to be placed on a CT board at a location other than the location at which he/she was placed to the CT board. III EMERGENCY SERVICE An employee on the CT board may indicate a desire for emergency service (DER). Those employees on the CT board with a DER notification will be called in seniority order when no active trainman or switchman is available at the location to perform the service. If contacted, they are not required to accept. Employees who request emergency work will not be considered available unless they are qualified.

IV RECALL TO ACTIVE SERVICE a) When additional employees are needed on an extra board, and there are an insufficient number of applications, the required number of employees will be obtained by notifying the senior employee(s) on the CT board at that location they are being placed on the extra board. Employees so notified are required to accept. b) If there is an insufficient number of employees on the CT board at the location where the extra board stands to be increased, the required number of employees will be obtained by notifying the junior employee(s) on the CT board at the nearest location(s) to report for service on the extra list at the location in Section a) above. Employees so notified are required to accept. c) Recall notification will be made by telephone call and certified letter, return receipt requested, with copy to the local chairperson, to the address in the Company records. At least two attempts to notify the employee via telephone will be made. Employees must keep CMS advised of their current telephone number and address. Employees are required to report within 15 days following telephone notification or postmark of the certified letter, whichever is later. An employee who is recalled may request an extension of the 15-day recall limit if such request is made within the 15-day period. Any extension granted will be determined on an individual basis depending on the individual s unique circumstances. d) Employees who have failed to report within 15 days following telephone notification or postmark of the certified letter, whichever is later, shall forfeit their seniority on all Roseville Hub trainman and switchman rosters. However at any time prior to 60 days following telephone notification or postmark of the certified letter, whichever is later, they may request an investigation be held. Such investigation will be conducted in accordance with existing agreements, and the employee shall be afforded the opportunity to present evidence and defend the circumstances of his or her not being able to report with the prescribed 15-day period. If the record discloses that the Company made attempts to notify as set forth above and the employee s seniority is reinstated, the Company will not be liable for financial damages during the period between forfeiture and the employee s notice of restoration of seniority. Employees who have failed to report within 60 days following telephone notification or postmark of the certified letter, whichever is later, will be deemed to have abandoned their employment and will forfeit their seniority on all Roseville Hub trainman and switchman rosters. e) Employees who are recalled to active service in accordance with this Article IV will not be subject to being again cut off within fifteen days of the recall notification.

V LODGING AND PER DIEM a) Employees covered in Article IV, Section b above, who are recalled to active service at a location other than the location where they are on the CT board, will be entitled to lodging and, in addition, a $ 35 per diem for meals if they report for service on or before the seventh (7 th ) day following date of notification, in accordance with the following schedule: i) Responds and reports for work no later than the second day following date of notification; 15 days per diem and lodging. ii) Responds and reports for work no later than the third day following date of notification; 12 days per diem and lodging. iii) Responds and reports for work no later than the fourth day following date of notification; 11 days per diem and lodging iv) Responds and reports for work no later than the fifth day following date of notification; 10 days per diem and lodging. v) Responds and reports for work no later than the sixth day following date of notification; 9 days per diem and lodging. vi) Responds and reports for work no later than the seventh day following date of notification; 8 days per diem and lodging. vii) Responds and reports for work after the seventh day following date of notification; no Company provided per diem and lodging. VI PROTECTION This agreement will not change the Company s practice of treating employees who cannot hold at one location and do not work at another location where they can hold. VII EFFECTIVE This agreement will be effective June, 2000 and supersedes any rule or practice with which it conflicts while it is in effect. This agreement is not intended to change rules or practices with which it does not conflict. FOR THE EMPLOYEES: FOR THE COMPANY: J. K. Klein, General Chairperson W. E. Loomis, Gen. Dir. LR A. C. Hallberg, Director LR

ATTACHMENT LOCATION CIRC7 LOCATION CIRC7 LOCATION CIRC7 ROSEVILLE RV323 OROVILLE PX751 OAKLAND PX949 Oroville PX751 Roseville RV323 Martinez (Ozol) RV390 Stockton PX862 Portola PX637 San Jose PS717 Martinez (Ozol) RV390 Stockton PX862 Stockton PX862 Oakland PX949 Martinez (Ozol) RV390 Roseville RV323 Sparks RV185 Dunsmuir OZ209 Oroville PX751 San Jose PS717 Sparks RV185 Fresno JQ292 Portola PX637 Oakland PX949 Sparks RV185 Fresno JQ292 San Jose PS717 San Luis Obispo CO242 Dunsmuir OZ209 Klamath Falls OZ314 Portola PX637 Winnemucca UX426 Fresno JQ292 Dunsmuir OZ209 Bakersfield JQ181 Winnemucca UX426 Bakersfield JQ181 San Luis Obispo CO242 Bakersfield JQ181 Klamath Falls OZ314 Klamath Falls OZ314 San Luis Obispo CO242 Winnemucca UX426 LOCATION CIRC7 LOCATION CIRC7 LOCATION CIRC7 SAN JOSE PS717 MARTINEZ (OZOL) RV390 STOCKTON PX862 Oakland PX949 Oakland PX949 Martinez (Ozol) RV390 Martinez (Ozol) RV390 San Jose PS717 Roseville RV323 Stockton PX862 Stockton PX862 Oakland PX949 Roseville RV323 Roseville RV323 San Jose PS717 Fresno JQ292 Oroville PX751 Oroville PX751 Oroville PX751 Fresno JQ292 Fresno JQ292 San Luis Obispo CO242 Sparks RV185 Sparks RV185 Bakersfield JQ181 Portola PX637 Portola PX637 Sparks RV185 San Luis Obispo CO242 San Luis Obispo CO242 Portola PX637 Dunsmuir OZ209 Bakersfield JQ181 Dunsmuir OZ209 Bakersfield JQ181 Dunsmuir OZ209 Klamath Falls OZ314 Klamath Falls OZ314 Winnemucca UX426 Winnemucca UX426 Winnemucca UX426 Klamath Falls OZ314

LOCATION CIRC7 LOCATION CIRC7 LOCATION CIRC7 FRESNO JQ292 BAKERSFIELD JQ181 SAN LUIS OBISPO CO242 Bakersfield JQ181 Fresno JQ292 Bakersfield JQ181 Stockton PX862 San Luis Obispo CO242 Fresno JQ292 San Luis Obispo CO242 Stockton PX862 San Jose PS717 San Jose PS717 San Jose PS717 Oakland PX949 Oakland PX949 Oakland PX949 Stockton PX862 Martinez (Ozol) RV390 Martinez (Ozol) RV390 Martinez (Ozol) RV390 Roseville RV323 Roseville RV323 Roseville RV323 Oroville PX751 Oroville PX751 Oroville PX751 Sparks RV185 Sparks RV185 Sparks RV185 Portola PX637 Portola PX637 Portola PX637 Dunsmuir OZ209 Dunsmuir OZ209 Dunsmuir OZ209 Winnemucca UX426 Winnemucca UX426 Klamath Falls OZ314 Klamath Falls OZ314 Klamath Falls OZ314 Winnemucca UX426 LOCATION CIRC7 LOCATION CIRC7 LOCATION CIRC7 DUNSMUIR OZ209 KLAMATH FALLS OZ314 PORTOLA PX637 Klamath Falls OZ314 Dunsmuir OZ209 Sparks RV185 Oroville PX751 Oroville PX751 Oroville PX751 Portola PX637 Sparks RV185 Roseville RV323 Sparks RV185 Winnemucca UX426 Stockton PX862 Roseville RV323 Portola PX637 Winnemucca UX426 Martinez (Ozol) RV390 Roseville RV323 Dunsmuir OZ209 Oakland PX949 Martinez (Ozol) RV390 Martinez (Ozol) RV390 Stockton PX862 Oakland PX949 Oakland PX949 San Jose PS717 Stockton PX862 San Jose PS717 Winnemucca UX426 San Jose PS717 Klamath Falls OZ314 Fresno JQ292 Fresno JQ292 Fresno JQ292 San Luis Obispo CO242 San Luis Obispo CO242 San Luis Obispo CO242 Bakersfield JQ181 Bakersfield JQ181 Bakersfield JQ181

LOCATION CIRC7 LOCATION CIRC7 SPARKS RV185 WINNEMUCCA UX426 Nearest Terminal Nearest Terminal Portola PX637 Sparks RV185 Roseville RV323 Portola PX637 Oroville PX751 Roseville RV323 Winnemucca UX426 Oroville PX751 Stockton PX862 Klamath Falls OZ314 Martinez (Ozol) RV390 Stockton PX862 Oakland PX949 Martinez (Ozol) RV390 Dunsmuir OZ209 Oakland PX949 San Jose PS717 Dunsmuir OZ209 Klamath Falls OZ314 San Jose PS717 Fresno JQ292 Fresno JQ292 San Luis Obispo CO242 San Luis Obispo CO242 Bakersfield JQ181 Bakersfield JQ181 5/15/00