Document:

Exhibit 10

Exhibit 10.8

FOURTH AMENDMENT
UAL CORPORATION

EMPLOYEE STOCK OWNERSHIP PLAN

(Effective as of July 12, 1994)

      By virtue and in exercise of the amending
power reserved to UAL Corporation (the "Company") under Section 13.1 (a)
of the UAL Corporation Employee Stock Ownership Plan (effective as of July
12, 1994) (the "Plan"), which amending power thereunder is subject to the
approval of the Air Line Pilots Association International ("ALPA") and
the International Association of Machinists and Aerospace workers (the
"IAM"), the Company hereby amends the Plan, subject to the approval of
ALPA and the IAM, as follows, effective as of August 15, 1996 (except as
specified below).

      1.  The following new paragraph
is added immediately following the third paragraph of the material labelled
"Transaction" which precedes Section 1:

            "The
parties to the Recapitalization Agreement have recognized that the value
of the Common Stock has increased significantly since the effective date
of the Plan. That increase is expected to result in an increase in the
price at which the Trustee will acquire Class 1 Non-Voting Preferred Stock
starting in 1996. As a result of the significant price increase and limitations
imposed under the Internal Revenue Code, the parties to the Recapitalization
Agreement anticipate that the portion of the underlying shares of Preferred
Stock which will be available under Part A may be reduced from 78.15% starting
in 1996, as contemplated by Section 1.6(q) of the Recapitalization Agreement.
Any reduction in the Class 1 Non-Voting Preferred Stock under Part A for
a Plan Year will be offset by a corresponding increase for that year in
the shares of Preferred Stock under Part B and the Supplemental Plan."

      2.  The material labelled "Part
A" which precedes Section 1 is amended by adding the following new paragraph
to the end of such material:

            "For
the Plan Years beginning on and after January 1, 1996, the foregoing percentages
will be adjusted as set forth in Section 5.4(a) (i) (A) to take into account
the expected limitations on the amount of shares of Preferred Stock which
can be delivered under Part A because of limitations under the Code. It
is expected that such Code limitations will result in an overall reduction
of the number of shares of Preferred Stock which can be delivered in Part
A. It is also expected that the total number of shares to be delivered
in Part A to the Management and Salaried Employee Group will be unchanged,
that the total number of shares to be delivered in Part A to the IAM Employee
Group will be reduced, and that the total number of shares to be delivered
in Part A to the ALPA Employee Group may be reduced. The Company shall,
pursuant to an agreement entered into pursuant to Section 1.6(q) of the
Recapitalization Agreement among the Company and the unions representing
the members of the ALPA and IAM Employee Groups, determine the number of
shares which are expected to be delivered under Part A, determine the relevant
percentages among the Employee Groups, and cause any reduction in the shares
delivered under Part A to each Employee Group to be offset by a corresponding
increase in the number of shares delivered under Part B and the Supplemental
Plan to that Employee Group, so that the total number of shares delivered
to each Employee Group will be unchanged."

      3.  Section 1(p) is amended by adding
the following to the end of the Section, it being understood that the language
set forth below is intended only as an explanation of the original intent
of the Plan and not as a substantive change to the Plan, and is therefore
effective July 12, 1994:

            "Compensation
shall not include amounts paid in an employee contest or drawing of any
type."

      4.  The following is added after
the first sentence of Section 3.1(a) (i):

      For Plan Years 1996 through 1999 inclusive,
the Company's contribution under Part A (and the corresponding principal
payment due for the initial year of each Additional Acquisition Loan entered
into for such years) shall be limited to the maximum contribution which
the Company reasonably determines in consultation with its advisers can
be made consistent with (w) satisfaction of the principles set forth in
Section 1.6(1) of the Recapitalization Agreement, (x) achieving a high
degree of certainty that the limits of Code Section 415(c) (6) shall not
be exceeded, (y) avoiding an allocation which would be expected to cause
all members of an Employee Group to exceed the limits of Code Section 415(c),
and (z) limiting the release of shares of Class 1 Non-Voting Preferred
Stock from the suspense accounts under the Acquisition Loans so that there
are available for allocation that year sufficient shares of Class 2 Non-Voting
Preferred Stock for each Employee Group to permit appropriate allocations
in the Supplemental ESOP to individuals whose allocations reached the limit
of Code Section 415(c). The Company's contribution shall be determined
under the Agreement Pursuant to Section 1.6 (q) of the Recapitalization
Agreement (the "1.6(q) Agreement") entered into by the Company, ALPA and
the IAM, which provides that the amount of the contribution shall not be
made by reconsidering the principles set forth in clauses (w) through (z),
but shall instead be made by using the same methodology which was used
by the Company (and verified by the Committee) for the determination of
the Revised Class 1 Decimal under the 1.6 (q) Agreement, and that such
methodology shall be applied by using such updated data as may be reasonably
available to the Company prior to the determination of the contribution."

      5.  Section 5.4(a) (i) (A) is amended
by adding the following to the end of the Section:

            "For
Class 1 Non-Voting Preferred Stock released for Plan Years beginning on
or after January 1, 1996 and before January 1, 2000, the allocation percentage
shall be determined by the Company as described below. There shall be determined
the number of shares of Class 1 Non-Voting Preferred Stock available for
allocation for the Plan Year, which is equal to the sum of (x) the number
of shares of Class 1 Non-Voting Preferred Stock which will be released
for the Plan Year on account of repayment of all Acquisition Loans and
(y) the number of shares held in the suspense account referred to in Section
5.5 (f) on account of excess contributions in the preceding Plan Year.
The number of shares of Class 1 Non-Voting Preferred Stock to be allocated
for the Plan Year on behalf of dividends paid on previously-allocated shares
shall be determined for each Employee Group. The allocation percentage
for the Management and Salaried Employee Group shall be the percentage
which will result in a total allocation of 497,983.6564 shares of Class
1 Non-Voting Preferred Stock, including the shares to be allocated on account
of dividends paid on previously-allocated shares. The percentage to be
allocated to the members of the IAM Employee Group shall be the least of
(xx) the percentage which would result in a total allocation to the IAM
Employee Group of 1,129,952.550 shares of Class 1 Non-Voting Preferred
Stock for such Plan Year, including shares to be allocated based upon dividends
paid on previously-allocated shares, (yy) the percentage which is expected
to result in the allocation of the sum of (i) the shares to be allocated
based upon dividends paid on previously-allocated shares, plus (ii) the
amount the Company reasonably determines, in consultation with its advisers,
as the maximum allocation which can be made consistent with avoiding an
allocation which would be expected to cause all members of the IAM Employee
Group to exceed the limits described in Section 5.4(a) (iii), or (zz) the
percentage which was contemplated for the allocation to the IAM Employee
Group upon consummation of the Additional Acquisition Loan entered into
during such Plan Year. The allocation percentage to the ALPA Employee Group
shall be one minus the sum of the allocation percentage to the Management
and Salaried Employee Group and the IAM Employee Group."

      6.  Section 5.4(a) (iii) is amended
by adding the following to the end of the Section:

            "Effective
for Plan Years beginning on or after January 1, 1996, for purposes only
of allocations of contributions under Part A, the amount of the limitation
under Code Section 415(c) shall be reduced by an amount which is reasonably
estimated by the Company for each Employee Group, as necessary to
permit the allocation of Voting Preferred Stock under Section 5.4(c) (i),
without violating the limitation of Code Section 415(c). For this purpose,
the amount of the reduction in the limitation may be estimated in any reasonable
way, and such estimation may be made on a group-wide, rather than an individual
basis; the amount of the reduction in the limitation need not be the same
for each Employee Group."

      7.  Section 5.4(a) (viii) shall
be redesignated as clause (ix), the first word of such clause shall be
changed from "eighth" to "ninth"", the reference "clauses (i) through (vii)"
shall be changed to a reference to "clauses (i) through (viii)", and there
shall be inserted a new clause (viii) as follows:

      "(viii) Eighth. If the allocation of
Employer contributions described in clause (vii) results in a violation
of Code Section 415 (c) for all members of any Employee Group (after reallocating
any excess allocation owing to members of such Employee Group), then the
excess allocation, and the shares released from repayment of Acquisition
Loans resulting from such excess allocation shall be placed in the suspense
account referred to in Section 5.5(f), and the tentative allocations shall
become final. For this purpose, shares shall first be allocated in any
Plan Year from the suspense account referred to in Section 5.5(f), and
then from the shares released on account of repayment of Acquisition Loans,
in the order the Acquisition loans were entered into."

      8.  Section 5.5 (d) is amended by
adding the following to the end of the Section:

      "For Plan Years beginning on or after
January 1, 1996, Part B shall generally continue to be reduced before Part
A, but Part A shall be reduced prior to Part B to the extent set forth
in the provisions of Section 5.4(a) (iii) which refer to Voting Preferred
Stock."

      9.  Section 5.5 (f) is amended to
read as follows:

      "(f) Excess Allocations. If, after applying
the allocation provisions under Section 5.4, allocations under Section
5.4 would otherwise result in a violation of Code Section 415, the ESOP
Committee shall reduce Employer Contributions for the next limitation year
for all Participants and shall hold excess amounts in a Suspense Account
for allocation in a subsequent Plan Year in accordance with Reg. Section
1.415-6(b) (6) (iii). The shares of Class 1 Non-Voting Preferred Stock
which correspond to such excess contribution amounts shall also be held
in such Suspense Account for allocation to Participants in a subsequent
Plan Year. If an amount is held in the Suspense Account referred to in
this subsection (f) after the completion of allocations for any Plan Year,
then such amount shall be allocated as part of the Employer Contribution
for the immediately following Plan Year. Such amount shall be included
in calculating the allocation percentage among the Employee Groups, pursuant
to Section 5.4(a) (i). Accordingly, in a Plan Year in which amounts held
in the Suspense Account are allocated, the total Employer Contributions,
including the amounts held in the Suspense Account, shall be allocated
according to the allocation percentages established under Section 5.4(a)
(i). The intended result of the allocation is that the Suspense Account
should not alter the agreed-upon cumulative division of shares among the
Employee Groups in Parts A and B and the Supplemental ESOP."

      10.  Section 7.2 is amended, effective
as of the date this amendment is adopted and approved, by adding the following
immediately before the words "provided, however":

            "or
the Participant is determined to have a Total Disability"

 

 

      IN WITNESS WHEREOF, the Company has caused
this Fourth Amendment to be executed on July 15, 1996.

 

 

 

  

	UAL
CORPORATION
	

 
	

/s/ Douglas A. Hacker
	Douglas
A. Hacker
	

 
	
	APPROVED
BY:
	

 
	AIR
LINE PILOTS ASSOCIATION,
	INTERNATIONAL
	

 
	/s/
J. Randolph Babbitt
	J.
Randolph Babbitt
	President
	

 
	/s/
Michael H. Glawe
	Michael
H. Glawe
	MEC
Chairman
	

 
	
	INTERNATIONAL
ASSOCIATION
	OF
MACHINISTS AND
	AEROSPACE
WORKERS
	

 
	/s/
Kenneth W. Thiede
	Kenneth
W. ThiedeExhibit 10

Exhibit 10.9

 

 

FIFTH AMENDMENT

UAL CORPORATION

EMPLOYEE STOCK OWNERSHIP PLAN

(Effective as of July 12, 1994)

By virtue and in exercise of the amending power reserved to UAL Corporation
(the "Company") under Section 13.1(a) of the UAL Corporation Employee Stock
Ownership Plan (effective as of July 12, 1994) (the "Plan"), which amending
power thereunder is subject to the approval of the Air Line Pilots Association
International ("ALPA") and the International Association of Machinists
and Aerospace Workers (the "IAM"), the Company hereby amends the Plan,
subject to the approval of ALPA and the IAM, as follows, effective as of
January 1, 1996 (except as specified below).

1.    The following is hereby added to the end of the
first paragraph of Section 1(p):

"With respect to a Participant who is a member of the Management and
Salaried Employee Group, if the Company implements a program of vacation
buy-backs applicable to individuals who have not terminated employment,
Compensation shall include the amounts payable on or after January 1, 1996
under such a program. With respect to the Management and Salaried Employee
Group, notwithstanding the preceding sentence, Compensation shall continue
to exclude pay received for vacation time that was accrued but not actually
taken as vacation before termination of employment by retirement or otherwise."

2.    Section 1(yy) is amended by adding the following to
the end of the section:
"The Wage Investment for members of the IAM Employee Group shall be
calculated by including hours for which the Participant receives payment
as a vacation buy back under a vacation buy back program implemented by
the Company on or after January 1, 1996. Such Wage Investment shall be
credited in the Plan Year in which such payment occurs."

3.    Section 5.4(a)(iv) is amended by adding the following
to the end of the section:
"Effective January 1, 1997, the Company elects to apply the rule provided
by Code Section 414(q)(1)(B)(ii). Accordingly, commencing with the Plan
Year beginning January 1, 1997, "highly compensated employee" means any
Employee who (1) was a 5% owner at any time during the Plan Year or the
preceding Plan Year, or (2) for the preceding Plan Year both (i) had compensation
from the employer in excess of $80,000 (as indexed under Code Section 414(q)),
and (ii) was in the top-paid group of Employees."

4.    Section 7.4(a)(iii) is amended by adding the following
to the end of the section:
"Effective January 1, 1997, the requirement that distributions commence
following age 70-1/2, but before termination of employment, shall only
apply in the case of a Participant who is a 5% owner with respect to the
Plan Year in which the Participant attains age 70-1/2. For all Participants
other than the 5% owners referred to in the preceding sentence, it is intended
that distributions prior to termination of employment be limited to the
amount, if any, required under Code Section 411(d)(6)(B)(ii). Accordingly,
(1) no distribution to such a Participant shall be made unless the Participant
elects to commence distributions, (2) the amount of the distributions to
such a Participant shall not exceed the amount which the Participant would
have been required to receive, based upon the Participant's Account balance
as of December 31, 1996 under the terms of this Plan as they existed prior
to adoption of the Fifth Amendment, and (3) if, by regulation, ruling or
otherwise, it is established that it is permissible to delay any distributions
for such a Participant until the Participant terminates employment, then
distributions shall be so delayed. In the case of any Participant whose
distributions commenced before January 1, 1997, distributions shall cease
for the 1997 and subsequent Plan Years if the employee so elects."

5.    The following is hereby added to the end of Section
7.11:
"If an appeal is filed regarding the status of a domestic relations
order following a determination by the Company of the status of such order,
and the Committee deadlocks with respect to such appeal, then the matter
shall not be referred to a neutral arbitrator. Instead, the determination
by the Company concerning the status of such domestic relations order shall
be considered final."

6.    Appendix A, concerning special annual allocations,
is amended by adding the following to the end of the paragraph entitled
"Other Special Annual Allocations":
"The Committee may adopt a Special Annual Allocation which is designed
to resolve situations which occurred in any Plan Year during the Wage Investment
Period even if the situation occurred before the Plan Year immediately
preceding the Plan Year in which the Committee adopted the Special Annual
Allocation. Thus, for example, if the Committee determines that, as a result
of missing data or a similar reason, a Participant's Account was not allocated
the appropriate number of shares in 1994, the Committee may adopt a Special
Annual Allocation for 1996 to resolve such situation."

7.    Appendix A is amended by adding the following new
paragraph to the end of Appendix A:
"Special Annual Allocations for USERRA.
a.    Notwithstanding any provisions of this Plan to
the contrary, contributions, benefits and service credit with respect to
qualified military service will be provided in accordance with Section
414(u) of the Internal Revenue Code.
b.    The benefits required by subsection (a) above shall
be provided through a Special Annual Allocation in the year in which the
Participant is reemployed following a period of qualified military service.
The number of shares to be credited to such Participant under the Special
Annual Allocation shall be determined according to the methods set forth
above for the Special Annual Allocation for 1995. The Compensation (or,
in the case of a member of the IAM Employee Group, the Wage Investment)
for the affected Participant shall be the Compensation or Wage Investment
which the employee would have received or been credited with during the
period of qualified military service. The other data used for the Special
Annual Allocation shall be the data applicable to the Plan Year or Plan
Years in which the qualified military service occurred. Thus, if a Participant
is entitled to a Special Annual Allocation for qualified military service
performed in 1995, the Applicable Average Contribution shall be calculated
with respect to allocations in the 1995 Plan Year. The Special Annual Allocation
under this subsection shall be effective for Participants who returned
to employment with the Company on or after January 1, 1996. For Participants
who return to employment with the Company on or after October 1, 1994,
but before January 1, 1996, shares were previously credited under the Supplemental
Plan, and such shares shall be contributed to the accounts of such Participants
under this Plan as permitted under Code Section 414(u)."

IN WITNESS WHEREOF, the Company has caused this Fifth Amendment to be executed
on December 31, 1996.

 

 

	UAL CORPORATION
	
	/s/ Douglas A. Hacker
	Douglas A. Hacker
	
	
	APPROVED BY:
	AIR LINE PILOTS ASSOCIATION,
	INTERNATIONAL
	
	/s/ J. Randolph Babbitt
	J. Randolph Babbitt, President
	
	/s/ Michael H. Glawe
	Michael H. Glawe, MEC Chairman
	
	
	INTERNATIONAL ASSOCIATION
	OF MACHINISTS AND
	AEROSPACE WORKERS
	
	/s/ Kenneth W. Thiede
	Kenneth W. Thiede

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