May 16, 2002

Gentlemen:

Please accept this written document as a letter of understanding regarding meal period compensation for locals operating between Cass Lake, MN and Superior, WI. During our conversations, we have discussed this issue relative to the Grand Rapids Turn (LTWI6201) operating daily from Superior to Grand Rapids, MN and back. This letter acknowledges agreement to compensate a thirty (30) minute allowance period in lieu of stopping to eat enroute. Reference the attached local agreement between Trainmaster Griffin and Local Chairman Sanders dated January 11th, 1988. As an extension of the 1988 local agreement, I acknowledge that this agreement applies to all members of the train and engine crew on the Grand Rapids Turn (LTWI6201).

It is understood that this agreement can be cancelled by any party upon 10-day written notice. Acknowledge your agreement by affixing your signature below.

Approved AVP Labor Relations

Cc: Randy Luther
Fred Rutt