Document:

United Airlines Employment Agreement

Exhibit 10.3

 

EMPLOYMENT AGREEMENT

             
This Employment Agreement (this "Agreement") is made as of this
5th day of September, 2002 (the "Effective Date"), is by and between
UAL Corporation, a Delaware corporation ("UAL") and United Air Lines,
Inc. ("UA," UAL and UA sometimes collectively referred to as "United")
and Glenn F. Tilton (the "Executive").

RECITALS

              
A.     United desires to employ the Executive as Chairman
of the Board, President and Chief Executive Officer of United, and the
Executive desires to accept such employment, on the terms and conditions
hereinafter set forth.

              
In consideration of the mutual covenants contained herein, and intending
to be legally bound, United and the Executive agree as follows:

1.           
Employment and Duties.

              
a.     Employment.  Subject to all of
the terms and conditions of this Agreement, United agrees to employ the
Executive as its Chairman of the Board, President and Chief Executive Officer
for the Employment Period (defined below), and the Executive accepts such
employment.

              
b.     Duties.  On and after the Employment
Date (defined below), as Chairman of the Board, President and Chief Executive
Officer of United, Executive will have overall charge and responsibility
for the business and affairs of United, and will perform such duties as
he is reasonably directed to perform by the Board of Directors of UAL (the
"Board").  If so elected, the Executive will also serve as
chairman of the board and chief executive officer of any subsidiaries or
affiliates of United designated by United.  Executive shall perform
such duties at United's headquarters located in Elk Grove Township, Illinois.

               
c.     Scope.  While the Executive is
employed by United hereunder, Executive will devote substantially all of
his business time, attention, skills and efforts to the business and affairs
of United and the performance of his duties under this Agreement. 
The Executive acknowledges that his duties and responsibilities under this
Agreement will require his full-time business efforts and agrees that he
will not engage in any other business activity or have any business pursuits
or interests which materially interfere or conflict with the performance
of the Executive's duties under this Agreement or which compete with United. 
Notwithstanding the foregoing, the parties agree that during the Employment
Period, it will not be a violation of this Agreement for the Executive
to (i) serve on corporate, civic or charitable boards or committees, (ii)
deliver lectures or fulfill speaking engagements, and (iii) manage personal
investments, so long as such activities do not significantly interfere
with the performance of the Executive's duties under this Agreement.

2.             
Term.

                
Subject to earlier termination in accordance with Section 4 below, Executive's
employment as Chairman of the Board, President and Chief Executive Officer
of United pursuant to the terms of this Agreement will become effective
on September 2, 2002 (the "Employment Date") and will have a term
of five (5) years, subject to earlier termination as provided in this Agreement
(the "Employment Period").  Except with respect to those provisions
which by their terms survive the expiration of this Agreement, this Agreement
will terminate upon the expiration of the Employment Period.  In the
event either the Executive or United desires the Executive to be employed
by United beyond the Employment Period, such party will, at least ninety
(90) days prior to the expiration of the Employment Period, notify the
other party in writing of his or its intention to seek to negotiate an
extension of this Agreement.

3.               
Compensation.

             
a.     Signing Bonus.  As an inducement
to enter into this Agreement, Company will pay Executive a signing bonus
in the gross amount of Three Million Dollars ($3,000,000) ("Signing
Bonus"), which amount shall be fully earned by Executive upon, and
will be payable by United concurrently with, Executive's execution of this
Agreement.  Executive agrees to repay an amount equal to the Signing
Bonus if the Executive's employment with the Company is terminated either
due to voluntary resignation by Executive other than for Good Reason (as
defined in Section 4(d)) or by the Company for Cause (as defined in Section
4(c)) on or before the first anniversary of the Employment Date. 
Without limiting the generality of the foregoing, in no event shall Executive
have any obligation to make such repayment if his employment terminates
as a result of a repudiation, rejection or similar breach of this Agreement
by United.

                  
b.     Base Salary.  During the Employment
Period, the Company will pay the Executive a base salary (the "Base
Salary") at an initial rate of $950,000 per year in accordance with
the Company's standard payroll practices.  The Base Salary will be
reviewed as part of the normal salary administration program for the Company's
senior executives by the Compensation Committee of the Board (the "Committee"),
for the purpose of considering increases in the Executive's Base Salary
in light of the Committee's executive compensation philosophy statement
then in effect, the performance by the Executive of his duties under this
Agreement, and base salaries of chief executive officers of companies in
the peer group identified by the Committee in its executive compensation
policy.  During the Employment Period the Committee will review and
consider further increases in the Base Salary, at the times and pursuant
to the procedures used in connection with considering base salary adjustments
for United's other senior executives.  Base Salary will not thereafter
during the term of this Agreement be decreased, unless such reduction (i)
is approved by the Board in accordance with the standards set forth in
the UAL Restated Certificate of Incorporation, and (ii) is applied on a
proportionally similar and no less favorable basis to Executive than to
substantially all other management employees of United.

                    
c.     Annual Bonus.  In addition to other
compensation to be paid under this Section 3, the Executive will be eligible
to receive a target annual bonus for each year during the Employment Period,
to be administered by the Board under United's Performance Incentive Plan
or other annual bonus plan hereafter approved by the Board (the "Incentive
Plan").  The Executive's target percentage will be 100% of his
Base Salary (the "Target Bonus").  Executive will be entitled
to an additional 100% over the Target Bonus amount for superior performance
("Extraordinary Bonus").  The Target Bonus and the Extraordinary
Bonus will be paid outside of the Incentive Plan.  The annual bonuses
under this Section 3(c) will hereinafter be referred to as the "Annual
Bonus."

                     
d.     Stock Options.

          (i)
Initial
Grant.  In addition to other compensation to be paid under this
Section 3, United will grant the Executive as of the Employment Date (i)
a ten-year stock option to purchase 500,000 shares of UAL's common stock,
$.01 par value per share (the "Common Stock"), under United's 2000
Incentive Stock Plan (the "2000 Plan") and (ii) a ten-year option
to purchase 650,000 shares of Common Stock under United's 2002 Share Incentive
Plan (the "2002 Plan") (together, the "Options") which shall
be pursuant to the terms set forth in the Stock Option Agreements in the
form attached hereto as Exhibit A.  The exercise price of the
Options will be the average of the high and low sale prices of the Common
Stock on the New York Stock Exchange on August 30, 2002 and September 3,
2002.  The Options will become exercisable in equal annual installments
on the first four (4) anniversaries of the Employment Date pursuant
to the terms of the 2000 Plan and the 2002 Plan, as applicable.
           (ii) Additional
Grants.  During the Employment Period, the Executive will be eligible
to receive stock options consistent with his position in the same manner
as United's other senior executives.

e.     Restricted Stock.

        (i)    Initial
Grant.  In addition to other compensation paid under this Section
3, United will grant the Executive as of the Employment Date 100,000 restricted
shares of UAL's common stock pursuant to United's 2002 Share Incentive
Plan and in accordance with the Restricted Stock Agreement in the form
attached hereto as Exhibit B.

        (ii)    Additional
Grants.  During the Employment Period, the Executive will be eligible
to receive restricted stock consistent with his position in the same manner
as United's other senior executives.

                    
f.     Long Term Incentive Plans.  In
addition to other compensation to be paid under this Section 3, the Executive
will be entitled to participate during the Employment Period in all long
term incentive plans now maintained or hereafter established by United
for the purpose of providing long term incentive compensation to senior
executives of United.  The Executive's participation in such plans
will be consistent with his position and no less favorable than the basis
and terms applicable to other senior executives of United.
                     
g.     SERP.  In consideration of pension
benefits forfeited by reason of his resignation from employment with his
prior employer and as an inducement to enter into this Agreement, Executive
will be entitled to Four Million Five Hundred Thousand Dollars ($4,500,000),
which amount is fully earned as of the date hereof, and is funded as follows:

         (i)    
Concurrent with the execution of the Agreement by Executive, United has
caused $1,500,000 to be paid to an account in the Executive's name under
an irrevocable trust governed by the trust agreement titled the Glenn Tilton
Secular Trust No. 1, in the form of the instrument attached to this Agreement
as Exhibit C, with such amount to be fully earned upon execution
of this Agreement.  Subject only to the following sentence, Executive
shall be fully vested with respect to such trust and the funds held therein
and shall have all right, title and ownership thereof.  If Executive's
employment with United is terminated due to voluntary resignation by Executive
other than for Good Reason(as defined in Section 4(d)) and the effective
date of termination is on or before the first anniversary of the Employment
Date, then Executive will forfeit 100 percent of his interest in his account
under the Glenn Tilton Secular Trust No. 1.  In all other cases, Executive's
right, title and interest in his account under the  Glenn Tilton Secular
Trust No. 1 will be paid in full to Executive in a single lump-sum cash
amount as of the first business day of January next following the earlier
of the first anniversary of the Employment Date or Executive's termination
of employment.
           (ii)    
Concurrent with the execution of the Agreement by Executive, United has
caused $1,500,000 to be paid to an account in the Executive's name under
an irrevocable trust governed by the trust agreement titled the Glenn Tilton
Secular Trust No. 2, in the form of the instrument attached to this Agreement
as Exhibit D, with such amount to be fully earned upon execution
of this Agreement.  Subject only to the following sentence, Executive
shall be fully vested with respect to such trust and the funds held therein
and shall have all right, title and ownership thereof.  If Executive's
employment with United is terminated due to voluntary resignation by Executive
other than for Good Reason(as defined in Section 4(d)) and the effective
date of termination is on or before the second anniversary of the Employment
Date, then Executive will forfeit 100 percent of his interest in his account
under the Glenn Tilton Secular Trust No. 2.  In all other cases, Executive's
right, title and interest in his account under the Glenn Tilton Secular
Trust No. 2 will be paid in full to Executive in a single lump-sum cash
amount as of the first business day of January next following the earlier
of the second anniversary of the Employment Date or Executive's termination
of employment.

           (iii)    
Concurrent with the execution of the Agreement by Executive, United has
caused $1,500,000 to be paid to an account in the Executive's name under
an irrevocable trust governed by the trust agreement titled the Glenn Tilton
Secular Trust No. 3, in the form of the instrument attached to this Agreement
as Exhibit E, with such amount to be fully earned upon execution
of this Agreement.  Subject only to the following sentence, Executive
shall be fully vested with respect to such trust and the funds held therein
and shall have all right, title and ownership thereof.  If Executive's
employment with United is terminated due to voluntary resignation by Executive
other than for Good Reason(as defined in Section 4(d)) and the effective
date of termination is on or before the third anniversary of the Employment
Date, then Executive will forfeit 100 percent of his interest in his account
under the Glenn Tilton Secular Trust No. 3.  In all other cases, Executive's
right, title and interest in his account under the Glenn Tilton Secular
Trust No. 3 will be paid in full to Executive in a single lump-sum cash
amount as of the first business day of January next following the earlier
of the third anniversary of the Employment Date or Executive's termination
of employment.

          (iv)    
All earnings on the foregoing trusts shall be distributed to Executive
as of the first business day of January next following the date earned
by such trusts.

The payments under this Section 3(g) are in addition to any
pension benefit payable under the United Airlines Management, Administrative,
and Public Contact Defined Benefit Pension Plan and the supplemental pension
benefit under the United Air Lines, Inc. Supplemental Retirement Plan (the
"Pension Plans").  The payments under Sections 3(a) and 3(g)(i),(ii)
and (iii) will not be included in earnings when determining Executive's
benefit under the Pension Plans.
The trustee(s) of the foregoing trusts shall be mutually acceptable
to United and the Executive and the trustee(s) shall be directed with respect
to investments either by the Executive or by an investment manager selected
by Executive.

                 
h.     Other Benefits.  In addition to
other compensation to be paid under this Section 3, during the Employment
Period the Executive will be entitled to participate in all employee benefit
plans, practices and programs maintained by United and made available to
its senior executives, as those plans, practices and programs may be amended,
supplemented, replaced or terminated from time to time, including without
limitation (A) medical, hospitalization, disability, dental, life, health
and travel accident insurance to the extent offered by United, and in amounts
consistent with United policy for all its senior executives; (B) other
benefit arrangements, including but not limited to the retirement plan,
supplemental retirement plan, split dollar life insurance programs (as
may be permitted by law), stock purchase plan, 401(k) plan, flexible spending
arrangement, income deferral plan, financial planning services, free and
reduced rate transportation, to the extent made generally available by
United to its senior executives; and (C) a number of weeks of paid vacation
each year, consistent with United policy for all its senior executives.

                  
i.     Relocation Benefits.  The Company
will pay all costs of relocation of the Executive and his family to the
Chicago metropolitan area in accordance with the Company's relocation policy
(specifically to include any costs associated with the termination of Executive's
current lease of his principal residence to the extent not provided in
such policy) and an additional cash payment (a "Gross-Up Payment")
to the Executive equal to an amount such that after payment by the Executive
of all taxes imposed on such Gross-Up Payment, the Executive would retain
an amount of the Gross-Up Payment equal to the taxes imposed on the relocation
benefits.

                   
j.     Reimbursement of Business Expenses. 
United agrees to reimburse the Executive for all reasonable out-of-pocket
business expenses incurred by the Executive on behalf of United, provided
that the Executive properly accounts to United for all such expenses in
accordance with the rules and regulations of the Internal Revenue Service
under the Code, and in accordance with the standard policies and procedures
of United relating to reimbursement of business expenses, which obligation
shall survive the expiration or termination of this Agreement.

                   
k.     Retiree Travel Benefit.  United
will provide the Executive upon termination of this Agreement upon its
expiration, upon mutual agreement, upon Executive's retirement in accordance
with United policy, by reason of Executive's Disability, by United for
other than Cause, or by the Executive for Good Reason, Director Emeritus
retiree travel benefits (or any successor benefit) in accordance with United's
policy (without regard to any applicable years of service requirement)
which may be in effect from time to time, which obligation shall survive
the expiration or termination of this Agreement.

                    
l.     Taxes, etc.  All compensation payable
to the Executive pursuant to this Agreement is stated in gross amount and
will be subject to all applicable withholding taxes, other normal payroll
taxes and any other amounts which United reasonably determines are required
by law to be withheld.

                   
m.     No Director Fees, etc.  The Executive
will not receive any additional compensation for (i) serving as a director
of UAL or UA or (ii) if so elected, serving as chairman of the board and
chief executive officer of any subsidiaries or affiliates of United.

4.       Termination.
                    
a.     Mutual Agreement.  The Executive's
employment hereunder may be terminated at any time by mutual agreement
on terms to be negotiated at the time of such termination.
                    
b.     Death or Disability.  This Agreement
will terminate automatically upon the Executive's death.  If United
determines in good faith that the Disability (as defined below) of the
Executive has occurred, subject to the respective continuing obligations
of United and the Executive under Sections 5 (Compensation Upon Termination),
7 (Confidentiality), and 9 (Non-Competition), the Company has the right
to terminate the Executive's employment under this Agreement by notice
pursuant to Sections 4(e) and 4(f) below.  For purposes of this Agreement,
the Executive will be deemed to have a "Disability" if the Executive
has been unable, by reason of illness or physical or mental incapacity
or disability (from any cause or causes whatsoever) to perform each and
every material duty of his employment under this Agreement, whether with
or without reasonable accommodation by the Company, in substantially the
manner and to the extent required hereunder prior to the commencement of
such Disability, for a period of six (6) consecutive months in any twelve
(12)-month period.  Such termination may not be arbitrary or unreasonable,
and the Board will obtain and take into consideration the opinion of a
physician chosen by the Board, the opinion of the Executive's personal
physician, if reasonably available, as well as applicable provisions of
the Americans with Disabilities Act, but such determination by the Board
will be final and binding on the parties to this Agreement.

                     
c.     By United for Cause.  Subject to
the respective continuing obligations of United and the Executive under
Sections 5 (Compensation Upon Termination), 7 (Confidentiality) and 9 (Non-Competition),
United has the right to terminate the Executive's employment under this
Agreement for Cause (as defined below) by notice pursuant to Sections 4(e)
and 4(f) below.  For purposes of this Agreement, "Cause" means:

(i)     a significant act or acts of personal
dishonesty or deceit that have a material adverse effect on United taken
by the Executive in the performance of his duties hereunder;
(ii)     the willful and continued failure by the
Executive to substantially perform the Executive's material duties under
this Agreement, including the duties set forth under Section 1(b) of this
Agreement (unless such failure is cured within thirty (30) days after the
Executive receives written notice of such failure); or

(iii)     the Executive's conviction of, or his
entry of a plea of guilty or nolo contendere to, any felony (other
than a felony predicated upon the Executive's vicarious liability), or
the entry of any final civil judgment against him for fraud, misrepresentation,
or misappropriation of property.

          Notwithstanding
the foregoing, the Executive will not be deemed to have been terminated
for Cause unless and until there has been delivered to the Executive a
copy of a resolution, duly adopted by the affirmative vote of not less
than a majority of the members of the Board at a meeting of the Board (after
reasonable notice which shall not be less than  thirty (30) days written
notice to the Executive and an opportunity for the Executive, together
with his counsel, to be heard before the Board), stating that in the good
faith opinion of the Board the Executive was guilty of conduct constituting
"Cause" as set forth above and specifying the particulars thereof in reasonable
detail.

          d.    
By the Executive for Good Reason.  Subject to the respective
continuing obligations of United and the Executive under Sections 5 (Compensation
Upon Termination), 7 (Confidentiality), 8 (Non-Disparagement) and 9 (Non-Competition),
the Executive has the right to terminate his employment under this Agreement
for Good Reason (as defined below) by notice pursuant to Sections 4(f)
and 4(g).  For purposes of this Agreement, "Good Reason" means:

(i)     if United becomes a debtor(s)
under the Bankruptcy Code, the failure of United to seek assumption of
this Agreement pursuant to Section 365 of the U.S. Bankruptcy Code within
thirty (30) days after entry of an order for relief under Chapter 11 of
the U.S. Bankruptcy Code or failure of the bankruptcy court having jurisdiction
over such case to enter a final order authorizing such assumption within
ninety (90) days from such date;
(ii)     the assignment to the Executive of any
duties inconsistent in any respect with the Executive's position, including
status, offices, titles and reporting relationships, authority, duties
or responsibilities as contemplated by Section 1 of this Agreement, or
any other action by United which results in a significant diminution in
such position, authority, duties or responsibilities, excluding for this
Section 4(d)(ii) any isolated, immaterial and inadvertent action not taken
in bad faith and which is remedied by United within thirty (30) days after
receipt of a notice thereof given by the Executive, and further excluding
any action in connection with the termination of the Executive's employment
for Cause, upon the death or the Disability of the Executive pursuant to
the terms of this Agreement, or by the Executive other than for Good Reason
pursuant to this Section 4(d);

(iii)     a reduction by United in the Executive's
Base Salary (other than a decrease contemplated by Section 3(a)) or any
other failure by United to comply with any of the provisions of Section
3 of this Agreement, including treatment of the Executive in a manner or
with an outcome inconsistent with United's treatment of its other senior
executives, other than an isolated, immaterial and inadvertent failure
not occurring in bad faith and which is remedied by United promptly after
receipt of notice thereof given by the Executive;

(iv)     the relocation of the Executive's principal
place of employment to a location more than 50 miles from the Executive's
principal place of employment immediately prior to such relocation, except
for travel reasonably required in the performance of the Executive's responsibilities;

(v)     any purported termination by United of the
Executive's employment otherwise than as expressly permitted by this Agreement;
or

(vi)     Executive's failure to be reelected as
a director and Chairman of the Board of United.

           
e.     Change of Control Termination.  A
"Change of Control Termination" includes, during a period of 24
months following a Change of Control, any termination by the Executive
for Good Reason or any involuntary termination of the Executive's employment
by United other than for Cause, Disability, or death.  A "Change
of Control," means the first of the following events to occur:

(i)     there is consummated a merger
or consolidation to which United or any direct or indirect subsidiary of
United is a party if the merger or consolidation would result in the voting
securities of United outstanding immediately prior to such merger or consolidation
continuing to represent (either by remaining outstanding or by being converted
into voting securities of the surviving entity or any parent thereof) less
than 80% of the combined voting power of the securities of United or such
surviving entity or any parent thereof outstanding immediately after such
merger or consolidation; or
(ii)     the direct or indirect beneficial ownership
(as defined in Rule 13d-3 under the Securities Exchange Act of 1934, as
amended (the "Exchange Act") in the aggregate of securities of United representing
twenty-five percent (25%) or more of the total combined voting power of
United's then issued and outstanding securities is acquired by any person
or entity, or group of associated persons or entities acting in concert;
provided, however, that for purposes hereof, the following acquisitions
shall not constitute a Change of Control: (A) any acquisition by United
or any of its subsidiaries, (B) any acquisition by any employee benefit
plan (or related trust or fiduciary) sponsored or maintained by United
or any corporation controlled by United, (C) any acquisition by an underwriter
temporarily holding securities pursuant to an offering of such securities,
(D) any acquisition by a corporation owned, directly or indirectly, by
the stockholders of United in substantially the same proportions as their
ownership of stock of United, and (E) any acquisition in connection with
a merger or consolidation which, pursuant to paragraph (i) above, does
not constitute a Change of Control; or

(iii)     there is consummated a transaction contemplated
by an agreement for the sale or disposition by United of all or substantially
all of United's assets, other than a sale or disposition by United of all
or substantially all of United's assets to an entity, at least 80% of the
combined voting power of the voting securities of which are owned by stockholders
of United in substantially the same proportions as their ownership of United
immediately prior to such sale; or

(iv)     the stockholders of United approve any
plan or proposal for the liquidation of United; or

(v)      the occurrence within any twenty-four
month or shorter period of a change in the composition of the Board such
that the "Continuity Directors" cease for any reason to constitute at least
a majority of the Board. For purposes of this
clause, "Continuity Directors" means (A) those members of the Board who
were directors on the date hereof and (B) those members of the Board (other
than a director whose initial assumption of office was in connection with
an actual or threatened election contest, including but not limited to
a consent solicitation, relating to the election of directors of United)
who were elected or appointed by, or on the nomination or recommendation
of, at least a two-thirds (2/3) majority of the then-existing directors
who either were directors on the date hereof or were previously so elected
or appointed; or

(vi)     such other event or transaction as the
Board shall determine constitutes a Change of Control.

            
f.     Notice of Termination.  Any termination
of the Executive's employment by United or by the Executive (other than
termination upon the Executive's death, which does not require notice)
must be communicated by written Notice of Termination to the other party
hereto given in accordance with Section 10(m) of this Agreement. 
For purposes of this Agreement, a "Notice of Termination" means a notice
which (i) indicates the specific termination provision in this Agreement
relied upon, (ii) sets forth in reasonable detail the facts and circumstances
claimed to provide a basis for termination of the Executive's employment
under the provisions so indicated and (iii) if the Termination Date (as
defined below) is other than the date of receipt of such notice, specifies
the Termination Date (which date will not be less than thirty (30) days
after the giving of such notice.  The failure by United or the Executive
to set forth in the Notice of Termination any fact or circumstance that
contributes to a showing of the basis for termination will not waive any
right of such party hereunder or preclude such party from asserting such
fact or circumstance in enforcing his or its rights hereunder.

             
g.     Termination Date.  "Termination
Date" means (i) if the Executive's employment is terminated by his death,
the date of his death, (ii) if the Executive's employment is terminated
by reason of his Disability pursuant to Section 4(b), thirty (30) days
after the receipt by the Executive of the Notice of Termination, (iii)
if the Executive's employment is terminated by United for Cause pursuant
to Section 4(c) or by the Executive for Good Reason pursuant to Section
4(d), the date specified in the Notice of Termination, (iv) if the Executive's
employment is terminated by mutual agreement of the parties, the date specified
in such agreement, and (v) if the Executive's employment is terminated
for any other reason, the date specified in the Notice of Termination,
provided that if within thirty (30) days after any Notice of Termination
is given the party receiving such Notice of Termination notifies the other
party that a dispute exists concerning the termination, the Termination
Date will be the date on which the dispute is finally determined, either
by mutual written agreement of the parties, by a binding and final arbitration
award or by a final judgment, order or decree of a court of competent jurisdiction
(the time for appeal therefrom having expired and no appeal having been
perfected), but in no event will the Termination Date be later than the
fifth anniversary of the commencement of the Employment Period.  Notwithstanding
the foregoing, but subject to Section 9, the Executive may accept any other
employment, without diminishing any of his rights or benefits hereunder,
at any time after the Termination Date, determined without regard to any
extensions pursuant to the proviso clause of the preceding sentence.

5.     Compensation Upon Termination.

              
a.     Death.  If the Executive's employment
is terminated by reason of the Executive's death, this Agreement will terminate
without further obligations to the Executive's legal representatives under
this Agreement, other than those obligations accrued or earned and vested
(if applicable) by the Executive as of the Termination Date, including
without limitation (i) the Base Salary through the Termination Date at
the rate in effect on the Termination Date, disregarding any reduction
in Base Salary in violation of this Agreement (the "Highest Base Salary"),
(ii) the Target Bonus described in Section 3(c), pro-rated to the Termination
Date, (iii) any other benefits payable to the Executive pursuant to the
terms of any benefit plan, the right to which had or becomes vested on
or after the Termination Date pursuant to the terms of the plan (such amounts
specified in clauses (i) through (iii) are hereinafter referred as "Accrued
Obligations," (iv) all outstanding long-term incentive awards, stock
options, restricted units and restricted stock, will immediately become
fully vested; and (v) each outstanding stock option will continue to be
exercisable in accordance with its terms and will remain exercisable for
the lesser of five years following the Termination Date, or the remainder
of its term.  All such Accrued Obligations will be paid to the Executive's
estate or beneficiary, as applicable, in a lump sum in cash within ten
(10) business days of the Termination Date, or in such other form as may
be provided for pursuant to such plans.

               
b.     Disability.  If the Executive's
employment is terminated by reason of the Executive's Disability, this
Agreement will terminate without further obligations to the Executive,
other than those obligations accrued or earned and vested (if applicable)
by the Executive as of the Termination Date, including without limitation
Accrued Obligations.  All such Accrued Obligations will be paid to
the Executive in a lump sum in cash within ten (10) business days of the
Termination Date, or in such other form as may be provided for pursuant
to such plans.

               
c.     By United For Cause; By Executive Other Than
For Good Reason.  If the Executive's employment is terminated
for Cause or by the Executive other than for Good Reason, this Agreement
will terminate without further obligations to the Executive, other than
those obligations accrued or earned and vested (if applicable) by the Executive
through the Termination Date, including without limitation all Accrued
Obligations (which for purposes of this provision will specifically exclude
any Annual Bonus pursuant to Section 3(c)).  All such Accrued Obligations
will be paid to the Executive in a lump sum in cash within ten (10) business
days of the Termination Date, or in such other form as may be provided
for pursuant to such plans.

                
d.     By United in Breach of Agreement; By Executive
For Good Reason.  If (i) United terminates the Executive's
employment other than for Cause, Disability or death or if the Executive
terminates his employment hereunder for Good Reason and (ii) such termination
does not constitute a Change of Control Termination:

(i)     to the extent not theretofore paid,
within ten (10) business days after the Termination Date, United will pay
the Executive his Base Salary and any Annual Bonus that may be due and
owing through the Termination Date;
(ii)     within ten (10) business days after the
Termination Date, United will pay the Executive those other obligations
accrued or earned and vested (if applicable) by the Executive as of the
Termination Date, including without limitation Accrued Obligations;

(iii)     in lieu of any further payments of Base
Salary and Annual Bonus to the Executive for periods subsequent to the
Termination Date, United will, within ten (10) business days after the
Termination Date, make a lump sum cash payment to the Executive equal to
the Base Salary, multiplied by the lesser of (A) the greater of (X) the
number of years remaining under the term of this Agreement or (Y) two years,
and (B) three;

(iv)     for a period of time equal to the lesser
of (A) the greater of (X) the number of years remaining in the term of
this Agreement or (Y) two years, and (B) three years, United will continue
benefits to the Executive and/or the Executive's family at least equal
to those which would have been provided to them in accordance with the
plans, programs, practices and policies described in Section 3(h) of this
Agreement if the Executive's employment under this Agreement had not been
terminated, including health insurance and life insurance, in accordance
with the plans, practices, programs or policies of United and its subsidiaries
in effect on the Termination Date;

(v)     all outstanding long-term incentive awards,
stock options, restricted units and restricted stock, will immediately
become fully vested; and

(vi)     each outstanding stock option will continue
to be exercisable in accordance with its terms and will remain exercisable
for the lesser of five years following the Termination Date, or the remainder
of its term.

 

        e.    
Change of Control Termination.  In the event of a Change of
Control Termination:

 
(i)     to the extent not theretofore paid,
within ten (10) business days after the Termination Date, United will pay
the Executive his Base Salary and any Annual Bonus that may be due and
owing through the Termination Date;
(ii)    within ten (10) business days after the Termination
Date, United will pay the Executive those other obligations accrued or
earned and vested (if applicable) by the Executive as of the Termination
Date, including without limitation Accrued Obligations;

(iii)    in lieu of further payments of Base Salary and
Annual Bonus to the Executive for periods subsequent to the Termination
Date, United will, within ten (10) business days after the Termination
Date, make a lump sum cash payment to the Executive equal to the Base Salary
and the Target Bonus described in Section 3(c), multiplied by three;

(iv)    for a period of time equal to the lesser of (A)
the greater of (X) the number of years remaining in the term of this Agreement
or (Y) two years, and (B) three years, United will continue benefits to
the Executive and/or the Executive's family at least equal to those which
would have been provided to them in accordance with the plans, programs,
practices and policies described in Section 3(h) of this Agreement if the
Executive's employment under this Agreement had not been terminated, including
health insurance and life insurance, in accordance with the plans, practices,
programs or policies of United and its subsidiaries in effect on the Termination
Date;

(v)      all outstanding long-term incentive
awards, stock options, restricted units and restricted stock, will immediately
become fully vested; and

(vi)     each outstanding stock option will continue
to be exercisable in accordance with its terms and will remain exercisable
for the lesser of five years following the Termination Date or the remainder
of its term.

                   
f.     By Executive By Taking Competitive Position.
If
the Executive is in violation of Section 9(a), the Executive's entitlement
to benefits under this Agreement will be limited to Accrued Obligations
(which for purposes of this provision will specifically exclude any Annual
Bonus pursuant to Section 3(c)), and Executive will forfeit any other additional
benefits or payments in which he is not otherwise vested, other than benefits
to which he is entitled under any other United employee benefit plan, program
or arrangement.
                   
g.     Gross-Up Payment.  Following any
termination of employment, United will cause a nationally recognized accounting
firm (the "Accountant"), acceptable to Executive, to promptly review,
at United's sole expense, the applicability of Code section 4999 to any
payment or distribution of any type by United to or for the benefit of
the Executive pursuant to Section 5(e), or otherwise (the "Total Payments"). 
If the Accountant determines that the Total Payments result in an excise
tax imposed by Code section 4999 or any comparable state or local law,
or any interest or penalties with respect to such excise tax (such excise
tax, together with any such interest and penalties, are collectively referred
to herein as the "Excise Tax"), United will make an additional cash
payment (a "Gross-Up Payment") to the Executive within ten (10)
days after such determination equal to an amount such that after payment
by the Executive of all taxes (including any interest or penalties imposed
with respect to such taxes), including any Excise Tax, imposed upon the
Gross-Up Payment, the Executive would retain an amount of the Gross-Up
Payment equal to the Excise Tax imposed upon the Total Payments. 
For purposes of the foregoing determination, the Executive's tax rate will
be deemed to be the highest statutory marginal state and federal tax rate
(on a combined basis) then in effect.  If no determination by the
Accountant is made prior to the time the Executive is required to file
a tax return reflecting the Total Payments, the Executive will be entitled
to receive from United a Gross-Up Payment calculated on the basis of the
Excise Tax the Executive reported in such tax return, within ten (10) days
after the later of the date on which the Executive files such tax return
or the date on which the Executive provides a copy thereof to United. 
In all events, if any tax authority determines that a greater Excise Tax
should be imposed upon the Total Payments than is determined by the Accountant
or reflected in the Executive's tax return pursuant to this paragraph,
the Executive will be entitled to receive from United the full Gross-Up
Payment calculated on the basis of the amount of the Excise Tax determined
to be payable by such tax authority within ten (10) days after the Executive
notifies United of such determination.

                    
h.     No Mitigation Required.  The Executive
will not be required in any way to mitigate the amount of any payment provided
for in this Section 5, including, but not limited to by seeking other employment,
nor will the amount of any payment provided for in this Section 5 be reduced
by any compensation earned by the Employee as the result of employment
with another employer after the Termination Date, or otherwise; provided,
however, that in the event United terminates this Agreement for Cause or
the Employee terminates this Agreement other than for Good Reason, United
will be entitled to reduce the benefits otherwise required to be provided
to the Executive, if any, from the Termination Date to the date that the
Employment Period would have expired, to the extent such benefits are actually
provided to the Executive by subsequent employers.

                     
i.     No Other Entitlement to Benefits Under Agreement. 
Following a termination governed by this Section 5, the Executive will
not be entitled to any compensation or benefits beyond those set forth
in this Agreement, except as Executive may otherwise be entitled to receive
outside the terms of this Agreement and as may be separately negotiated
by the parties and approved by the Compensation Committee or the Compensation
Administration Committee, as applicable, in writing in conjunction with
the termination of the Executive's employment under this Agreement.

           
j.     Survival.  The obligations of this
Section 5 will survive the expiration or termination of this Agreement.

6.      Indemnification.
         United shall maintain,
for the benefit of the Executive, director and officer liability insurance
in form at least as comprehensive as, and in an amount that is at least
equal to, that maintained for its officers and directors by United on the
Effective Date.  In addition, the Executive shall be indemnified by
United against liability as an officer and director of United and any subsidiary
or affiliate of United to the maximum extent permitted by applicable law. 
The Employee's rights under this Section 6 shall continue so long as he
may be subject to such liability, whether or not this Agreement may have
terminated prior thereto.

7.      Confidentiality.

          a.     
Definition.  "Confidential Information," as used in
this Agreement, means and includes (without limitation) the kinds of services
provided or proposed to be provided by United and its subsidiaries to customers,
the manner in which such services are performed or offered to be performed,
information concerning United's and its subsidiaries' fleet plan, cost
structure, strategic plan, labor strategy, information concerning the creation,
acquisition or disposition of products and services, personnel information,
and other trade secrets and confidential or proprietary information concerning
United's and its subsidiaries' business, but shall not include information
which (i) is or becomes generally available to the public other than as
a result of a disclosure by Executive, (ii) was available to Executive
on a non-confidential basis prior to its disclosure by United or any subsidiary
of United, or (iii) becomes available to Executive on a non-confidential
basis from a person other than United, any subsidiary of United or their
officers, directors, employees or agents who is not otherwise bound by
any confidentiality obligations with respect to the information provided
to Executive.

           b.    
Prohibition on Use of Confidential Information.

         (i)    
The Executive acknowledges that: (a) United's and its subsidiaries' business
is intensely competitive and that the Executive's employment by United
will require that the Executive have access to and knowledge of Confidential
Information of United, (b) the direct or indirect disclosure of any Confidential
Information would place United at a disadvantage and would do damage, monetary
or otherwise, to United's business, and (c) the engaging by the Executive
in any of the activities prohibited by this Section 7 may constitute improper
appropriation or use of such Confidential Information.  The Executive
expressly acknowledges the trade secret status of the Confidential Information
and that the Confidential Information constitutes a protectible business
interest of United.
          (ii)   
From and after the Effective Date, the Executive will not make known, disclose,
furnish, make available or use any of the Confidential Information, whether
directly or indirectly, individually, as a director, stockholder, owner,
partner, employee, principal, or agent of any business, or in any other
capacity, other than in the proper performance of his duties contemplated
under this Agreement.  Upon termination of this Agreement (or at any
other time requested by United), the Executive will return to United any
tangible Confidential Information, including photocopies, extracts and
summaries thereof, or any such information stored electronically on tapes,
computer disks, or in any other manner that the Executive has in his possession.

c.      Survival.  The obligations
of this Section 7 will survive the expiration or termination of this Agreement.

8.     Non-Disparagement.
        a.    
Limitation on Application.  If United terminates the Executive's
employment other than for Cause, Disability or death or if the Executive
terminates his employment hereunder for Good Reason, then, and only then,
shall the terms of this Section 8 become effective.

        b.    
By the Executive.  The Executive agrees not to make, or cause
to be made, any statement, observation or opinion, or communicate any information
(whether oral or written, directly or indirectly) that (i) accuses or implies
that United and/or any of its parents, subsidiaries and affiliates, together
with their respective present or former officers, directors, partners,
stockholders, employees and agents, and each of their predecessors, successors
and assigns, engaged in any wrongful, unlawful or improper conduct, whether
relating to the Executive's employment (or the termination thereof), the
business or operations of United, or otherwise; or (ii) disparages, impugns
or in any way reflects adversely upon the business or reputation of United
and/or any of its parents, subsidiaries and affiliates, together with their
respective present or former officers, directors, partners, stockholders,
employees and agents, and each of their predecessors, successors and assigns.

         c.     
By United.  United agrees not to willfully authorize any statement,
observation or opinion (whether oral or written, direct or indirect) that
is materially injurious to the Executive and that (i) accuses or implies
that the Executive engaged in any wrongful, unlawful or improper conduct
relating to the Executive's employment with United or (ii) disparages,
impugns or in any way reflects adversely upon the reputation of the Executive.

         d.    
Limitations.  Nothing herein will be deemed to preclude the
Executive or United from providing truthful testimony or information pursuant
to subpoena, court order or similar legal process, or instituting and pursuing
legal action.

         e.    
Survival.  The obligations of this Section 8 will survive
the expiration or termination of this Agreement.

9.      Non-Competition.

         a.    
Non-Compete; Non-solicitation.  Without the consent
in writing of the Board, during the Employment Period and for a period
of two years after termination of the Executive's employment hereunder,
(i) the Executive will not become a consultant to, or an officer, employee,
agent, advisor, principal, partner, director or substantial stockholder
of any airline, air carrier, or any company or other entity affiliated,
directly or indirectly, with another airline or air carrier, including
holding company thereof, and (ii) the Executive will not, directly or indirectly,
for the benefit of any airline or air carrier or any company or other entity
affiliated, directly or indirectly, with another airline or air carrier
other than United, solicit the employment or services of, hire, or assist
in the hiring of any person eligible for United's Performance Incentive
Plan (or any successor incentive compensation plan).

           b.    
Acknowledgment.  The Executive has carefully read and considered
the provisions of this Section 9 and, having done so, agrees that the restrictions
set forth in this Section 9 (including the period of restriction, scope
of activity to be restrained and the geographical scope) are fair and reasonable
and are reasonably required for the protection of the interests of United,
its officers, directors, employees, creditors and stockholders.  The
Executive understands that the restrictions contained in this section may
limit his ability to engage in a business similar to that of United's,
but acknowledges that he will receive sufficiently high compensation and
other benefits hereunder to justify such restrictions.

           
c.      Survival.  The obligations
of this Section 9 will survive the expiration or termination of this Agreement.

10.      Miscellaneous.

           a.      
Stock Ownership Requirements.  Executive is not required to
comply with United's current stock ownership guidelines applicable to United's
senior executives.

           b.     
No Adequate Remedy.  The Executive understands that if he
fails to fulfill his obligations under Sections 7 (Confidentiality), 8
(Non-Disparagement) or 9 (Non-Competition) of this Agreement, United will
suffer irreparable injury, and the damages to United would be very difficult
to determine.  Therefore, in addition to any other rights or remedies,
the Executive agrees that United will be entitled to a temporary, preliminary,
and permanent injunction enjoining or restraining the Executive from any
such violation or threatened violation, without the necessity of proving
the inadequacy of monetary damages or the posting of any bond or security. 
The Executive hereby consents to specific enforcement of Sections 7, 8
and 9 of this Agreement by United through an injunction or restraining
order issued by any state or federal court of competent jurisdiction. 
The Executive further acknowledges and agrees that due to the uniqueness
of his services and confidential nature of the Confidential Information
he possesses or will possess during the Employment Period, the covenants
set forth herein are reasonable and necessary for the protection of the
business and the goodwill of United.

           
c.       No Conflicts.  The
Executive represents and warrants to United that neither the entering into
of this Agreement nor the performance of any obligations hereunder will
conflict with or constitute a breach under any obligation of him, as the
case may be, under any agreement or contract to which he is a party or
any other obligation by which the Executive is bound.  Without limiting
the foregoing, the Executive agrees that at no time will he knowingly use
any trade secrets or other intellectual property of any third party while
performing services hereunder, unless properly authorized by such third
party.

            
d.      Reimbursement of Professional Fees.
United will pay on the Executive's behalf all bills rendered to the Executive
by the Executive's attorneys, accountants and other advisors in connection
with the negotiation and execution of this Agreement; provided, however,
that the amount of professional fees payable hereunder will not exceed
$60,000.

             
e.       Successors and Assigns. 
This Agreement is personal to the Executive and may not be assigned or
delegated by the Executive or transferred in any manner whatsoever, nor
are such obligations subject to involuntary alienation, assignment or transfer. 
This Agreement will inure to the benefit of and be enforceable by the Executive's
legal representatives.  This Agreement is binding on and inures to
the benefit of United's successors and assigns.  As used in this Agreement,
the term "United" includes any successor to United's business and/or assets
which assumes and agrees to perform this Agreement by operation of law
or otherwise.

             
f.      Modification.  This Agreement
may be modified or amended only by a writing signed by United and the Executive.

            
g.     Governing Law.  The laws of the
State of Illinois will govern the validity, construction, and performance
of this Agreement (without regard to conflict of laws principles).

            
h.      Dispute Resolution.  Except
for any proceeding brought pursuant to Section 10(a) herein, the parties
agree that any dispute arising out of or relating to this Agreement or
the formation, breach, termination or validity thereof (a "Dispute"),
will be settled by binding arbitration by a panel of three (3) arbitrators
in accordance with the commercial arbitration rules of the American Arbitration
Association.  The arbitration proceedings will be located in Chicago,
Illinois.  The arbitrators are not empowered to award damages in excess
of compensatory damages and each party hereby irrevocably waives any damages
in excess of compensatory damages.  Judgment upon any arbitration
award may be entered into any court having jurisdiction thereof and the
parties consent to the jurisdiction of any court of competent jurisdiction
located in the State of Illinois.  In the event Executive prevails
in arbitration on a material issue, Executive will be entitled to recover
his costs of arbitration, including reasonable attorneys' fees, and any
costs associated with the enforcement of the arbitrator's decree, including
reasonable attorneys' fees.  Notwithstanding the foregoing, if litigation
is brought with respect to this Agreement, other than litigation not permitted
by this Agreement which is commenced by Executive, Executive shall be entitled
to recover from United his costs and expenses associated with such litigation,
including reasonable attorneys' fees.

             
i.       Construction.  Whenever
possible, each provision of this Agreement will be interpreted so that
it is valid under the applicable law.  If any provision of this Agreement
is to any extent declared invalid by a court of competent jurisdiction
under the applicable law, that provision will remain effective to the extent
not declared invalid.  The remainder of this Agreement also will continue
to be valid to the extent it is consistent with the essential intent and
principles of the Agreement, and the entire Agreement will continue to
be valid in other jurisdictions.

             
j.        Waivers.  No
failure or delay by United or the Executive in exercising any right or
remedy under this Agreement will waive any provision of the Agreement. 
Nor will any single or partial exercise by either United or the Executive
of any right or remedy under this Agreement preclude either of them from
otherwise or further exercising these rights or remedies, or any other
rights or remedies granted by any law or any related document.

            
k.        Entire Agreement. 
This Agreement and option agreements to which the Executive is a party
together embody the entire agreement and understanding of the parties hereto
in respect of the matters contemplated by this Agreement.  This Agreement
supersedes all prior and contemporaneous agreements and understandings
between the parties with respect to the matters contemplated by this Agreement,
including without limitation the Term Sheet dated August 30, 2002.

              
l.        Actions by United. 
All actions (or decisions to take no action) by UAL or UA in connection
with this Agreement will be taken on behalf of UAL or UA by its Board of
Directors (except as otherwise specifically provided in this Agreement),
by a majority of such board (not including the Executive).

             
m.      Notices.  All notices and
other communications under this Agreement must be in writing and must either
be delivered personally, sent by first class mail, certified or registered
with return receipt requested, postage prepaid; if to United, to the attention
of the General Counsel at 1200 East Algonquin Road, Elk Grove Township,
Illinois 60007; and if to the Executive, at his address most recently on
file with United, or such other address as either party may specify by
like notice.

             
n.      Employment Status.  Nothing
herein contained shall interfere with United's right to terminate the Executive's
employment with United at any time, with or without Cause, subject to the
Company's obligation to provide severance benefits and other amounts as
may be required hereunder.

            
United and the Executive have executed this Agreement as of the date first
above written.

 

 

	UAL CORPORATION	EXECUTIVE
		
	By:  /s/ Francesca M. Maher___________	/s/ Glenn F. Tilton_____________
	     Name:  Francesca M. Maher	Glenn F. Tilton
	     Title:     Senior Vice
President, 	
	                
General Counsel and Secretary	
		
	UNITED AIR LINES, INC.	
		
	By:  /s/ Francesca M. Maher___________	
	     Name:  Francesca M. Maher	
	     Title:     Senior Vice
President,	
	                
General Counsel and Secretary	

 

 

 

 

 

 

 

 
EXHIBIT A

AGREEMENT WITH SENIOR OFFICERS OF UNITED AIR LINES, INC.

NON-QUALIFIED STOCK OPTION UNDER THE UAL CORPORATION

2000 INCENTIVE STOCK PLAN

            This
Option, granted this 2nd day of September, 2002 by UAL Corporation,
a Delaware corporation (hereinafter called the "Company"), to Glenn F.
Tilton (hereinafter called the "Employee") of the Company or one of its
Subsidiaries (as defined below).

WITNESSETH:

            The
object of this Option is to provide a means to permit the Employee to acquire
shares of Common Stock, $.01 par value per share (hereinafter referred
to as "Common Stock"), of the Company pursuant to a non-qualified option
for the purposes set forth in the 2000 Incentive Stock Plan (the "Plan").

            NOW,
THEREFORE, the Company hereby grants to the Employee an option (hereinafter
called the "Option") to purchase, from time to time, all or any part of
a total of the number of 500,000 shares of Common Stock for a period of
time beginning the date of the grant and ending September 1, 2012, ten
years after the date of the Option (hereinafter called the "Option Period"),
upon and subject to the following terms and conditions:

        1.    Price. 
For any shares of Common Stock purchased at any time during the Option
Period, the Employee shall pay to the Company Three Dollars and Three Cents
($3.03) per share (hereinafter called the "Option Purchase Price"), being
not less than 100% of the fair market value of the shares on the date hereof.

         2.   Exercise
Procedures.  The Option may be exercised, subject to the provisions
of Sections 3, 6, 7 and 8 hereof, only within the Option Period and only
(a) by notices in writing of intent to exercise the Option, each of which
notices shall state the number of shares in respect of which the Option
is exercised, delivered to the Corporate Secretary of UAL Corporation,
or mailed by registered or certified mail addressed to the Corporate Secretary
of UAL Corporation, P. O. Box 66919, Chicago, Illinois 60666, from time
to time, until the total number of shares underlying this Option have been
purchased, and (b) by payment to the Company of the aggregate Option Purchase
Price for the number of shares in respect of which the Option is exercised
(together with any taxes required to be withheld) contemporaneously with
its receipt of each such notice.  Payment of such aggregate Option
Purchase Price may be made, in whole or in part, by the delivery, or, if
administratively permitted by the Company, by attestation of ownership,
of whole shares of Common Stock which (i) have a market value equal to
such aggregate Option Purchase Price (or equal to the portion of such aggregate
Option Purchase Price being paid with such shares), (ii) are held of record
by the Employee, and (iii) have been owned by the Employee, either of record
or beneficially through a broker or other nominee, for at least six months. 
The Company may require at the time the Option is exercised a written statement
of the person exercising the Option that his or her intention is to acquire
the shares for investment and without a view to their distribution.

3.    Vesting.  Subject to Section
6A below, the Option is subject to the following limitations upon its exercise:
(a)    No shares may be acquired until September
2, 2003.
(b)    Commencing on each consecutive September 2nd
, beginning on September 2, 2003, the Employee will be entitled to exercise
the right to purchase one-fourth (1⁄4) of the total number of shares
specified in the Option.

            4. Deferral. 
The Employee may elect, in accordance with
the Option Deferral Policy as in effect from time to time, to defer receipt
of the shares that result from the exercise of the Option.  The election
to defer receipt of shares is irrevocable.
            5.
Transferability. 
Unless an election to transfer has been made, the Option is not transferable
by the Employee, other than by will or the laws of descent and distribution,
and may be exercised, during the lifetime of the Employee, only by the
Employee.  Upon election, Employee may transfer any part of or all
of the Option, but only to persons provided by, and in a manner consistent
with, the Option Transfer Policy.

            6.
Expiration
- Other Than Retirement.  Subject to Section 6A below, the Option
shall not be exercisable after the Expiration Date.  Subject to Sections
6A and 7, the Expiration Date shall be the earliest to occur of (a) or
(b):

(a)    September 1, 2012; or

(b)    Six months after the Employee's cessation
of employment by the Company and all of its Subsidiaries (without regard
to the Employee's subsequent re-employment by the Company or a Subsidiary)
under any circumstances except Retirement (as defined in Section 7), death
or termination by the Company other than for Cause (as defined in Section
6A) and may be exercised only in respect of the number of shares which
the Employee could have acquired under the Option by the exercise thereof
immediately prior to such cessation of employment.

For purposes of this Section 6 and Sections 6A and 7, and for purposes
of the other provisions of this Agreement, an Employee employed by a subsidiary
or other entity which ceases to meet the definition of a Subsidiary contained
in this Agreement will be treated as though his or her employment has ceased
as of the date the entity ceases to meet such definition.  In
the event of any disagreement as to whether for the purposes of this Option
an Employee's employment by the Company or a Subsidiary has ceased, the
committee appointed to administer the Plan shall have absolute and uncontrolled
discretion to determine whether such employment has ceased, and the effective
date of such cessation of employment, and its determination shall be final
and conclusive on all persons affected thereby.
            6A. 
Termination without Cause or Resignation for Good Reason.  Notwithstanding
the foregoing provisions of this Agreement, in the event that the Employee's
termination of employment occurs by reason of either (i) termination by
the Company for reasons other than Cause, Disability or Retirement (as
defined in Section 7), (ii) resignation by the Employee for Good Reason,
or (iii) death, then the Option shall immediately become fully vested and
exercisable as of the date of termination and shall remain exercisable
for the lesser of five years following the date of termination or the remainder
of the original term, as though the Employee's employment had continued
without regard to such termination.  For purposes of this Agreement,
the terms "Cause," "Disability" and "Good Reason" shall be as defined and
determined in that Employment Agreement entered into by an between the
Employee and the Company effective as of September 2, 2002.

            7.
Expiration
- Retirement.  If cessation of employment occurs due to Employee's
Retirement (as defined below), the Option may be exercised on or prior
to the Expiration Date, and the right to purchase shares under this Option
shall continue to accrue, as provided in Section 3 above, to the Employee
(without regard to the Employee's subsequent re-employment by the Company
or a Subsidiary).  As used in this Agreement, "Retirement" shall mean
an Employee's termination of employment by the Company and all of its Subsidiaries,
other than by reason of death of the Employee, (i) at any time the Employee
is eligible to immediately receive early or normal benefits under his or
her employer's defined benefit pension plan, including any supplemental
defined benefit pension plan or, in all other cases, (ii) that is determined
by the Company, in its sole discretion, to be a Retirement for purposes
of this Agreement.  Notwithstanding the foregoing, in the event of
the Employee's death following the Employee's Retirement but prior to the
Expiration Date, the Option may be exercised within one year after the
date of death (but not later than the Expiration Date) by his or her estate
or by the person or persons to whom his or her rights under the Option
shall pass by will or the laws of descent and distribution, but only in
respect of the number of shares which the Employee could have acquired
under the Option by the exercise thereof immediately prior to the date
of death.

            8.
Securities
Law Compliance.  The Company shall not be required to issue or
deliver any certificate for its Common Stock purchased upon the exercise
of this Option prior to compliance by the Company with any requirements
of any stock exchange on which Common Stock of the Company may at that
time be listed.  If at any time during the Option Period the Company
shall be advised by its counsel that the shares of Common Stock deliverable
upon an exercise of the Option are required to be registered under the
Federal Securities Act of 1933, as amended, or any state securities law
or that delivery of such Common Stock must be accompanied or preceded by
a Prospectus meeting the requirements of such Act, the Company will use
its reasonable efforts to effect such registration or provide such Prospectus
not later than a reasonable time following each exercise of this Option,
but delivery of Common Stock by the Company may be deferred until such
registration is effected or such Prospectus is available.  If at any
time during the Option Period the Company shall be advised by its counsel
that the Common Stock deliverable upon exercise of this Option are subject
to the restrictions on sale imposed on "affiliates" under Rule 144 of the
Federal Securities Act of 1933, the Employee will use his or her best efforts
to comply with said Rule 144.  This Option shall not confer upon the
Employee any rights as a shareholder of the Company prior to the date on
which the Employee fulfills all conditions for receipt of such rights.

            9.
Stock
Splits, Reclassifications, Etc.  In the event the outstanding
shares of Common Stock of the Company shall be changed into an increased
number of shares, through a stock dividend or a split-up of shares, or
into a decreased number of shares, through a combination of shares, then
immediately after the record date for such change, the number of shares
of Common Stock then subject to the Option shall be proportionately increased,
in case of such stock dividend or split-up of shares, or proportionately
decreased, in case of such combination of shares, and the Option Purchase
Price under such Option shall be adjusted to such amount that the aggregate
cost of the shares subject to such Option immediately after such increase
or decrease in shares shall be the same as the aggregate cost of the shares
subject to such Option immediately prior to such increase or decrease in
shares.

            In
the event that, as a result of a reorganization, sale, merger, consolidation
or similar occurrence, there shall be any other change in the shares of
Common Stock of the Company, or of any stock or other securities into which
such Common Stock shall have been changed, or for which it shall have been
exchanged, then the Board of Directors of the Company shall make such equitable
adjustments to the Option (including, but not limited to, changes in the
number or kind, or the Option Purchase Price, of shares then subject to
the Option), as it shall deem appropriate, and any such adjustments shall
be effective and binding on the Employee for all purposes of the Option.

            10.
Use
of Shares for Tax Withholding.  Notwithstanding anything in this
Agreement to the contrary, the Employee may elect, prior to delivery of
the shares arising from exercise of the Option, to satisfy any Federal,
State, local, FICA, Medicare or other tax withholding obligation attributable
to the exercise of the Option by having the Company withhold from the Common
Stock a number of whole shares of Common Stock with a fair market value
equal to the amount of such tax withholding obligations with respect to
which such election is made (with the Employee to pay in cash any remaining
amount of such tax withholding obligation which is less than the fair market
value of a whole share).  The amount withheld pursuant to this Section
shall be calculated based upon the minimum tax rate or rates at which the
Company is required to withhold under applicable law.

            11.
Successors
and Assigns.  This Option shall be binding upon and inure to the
benefit of the parties hereto and the successors and assigns of the Company
and the heirs and personal representatives of the Employee.

            12.
Governing
Law.  This Option shall be governed by the laws of the State of
Illinois applicable to agreements made and to be performed entirely within
such State.

            13.
Applicability
of Plan.  This Option shall be subject to the terms of the Plan,
including, without limitation, Sections 2, 5, 9, 14 and 15 thereof; provided,
however, that in the event of any inconsistency between this Option and
the Plan, the terms of this Option shall govern.

            14.
Modification. 
Except as expressly provided herein or in the Plan, this Option may not
be altered, modified, changed or discharged, except by a writing signed
by or on behalf of both the Company and the Employee.

            15.
Securities
Trading Policy.  The Employee acknowledges and agrees to comply
with the legal requirements and Company's policies applicable to trading
in UAL securities by the Employee, as described in the United Airlines
Code of Conduct and Securities Trading Policy, as they appear in Regulations
5-4.

            IN
WITNESS WHEREOF, the Company and the Employee have executed this Option
as of the day and year first above written.

 

  

	UAL CORPORATION
	
	By: /s/ Francesca M. Maher_____
	Senior Vice President,
	General Counsel and Secretary
	
	
	ACCEPTED:
	/s/ Glenn F. Tilton_____________
	(signature of employee)
	
	Print Name: Glenn F. Tilton

 

 

 

  

 

AGREEMENT WITH SENIOR OFFICERS OF UNITED AIR LINES, INC. NON-QUALIFIED
STOCK OPTION UNDER THE UAL CORPORATION

2002 SHARE INCENTIVE PLAN

            This
Option, granted this 2nd day of September, 2002 by UAL Corporation,
a Delaware corporation (hereinafter called the "Company"), to Glenn F.
Tilton (hereinafter called the "Employee") of the Company or one of its
Subsidiaries (as defined below).

WITNESSETH:

            The
object of this Option is to provide a means to permit the Employee to acquire
shares of Common Stock, $.01 par value per share (hereinafter referred
to as "Common Stock"), of the Company pursuant to a non-qualified option
for the purposes set forth in the 2002 Share Incentive Plan (the "Plan").

            NOW,
THEREFORE, the Company hereby grants to the Employee an option (hereinafter
called the "Option") to purchase, from time to time, all or any part of
a total of the number of 650,000 shares of Common Stock for a period of
time beginning the date of the grant and ending September 1, 2012, ten
years after the date of the Option (hereinafter called the "Option Period"),
upon and subject to the following terms and conditions:

            1.
Price. 
For any shares of Common Stock purchased at any time during the Option
Period, the Employee shall pay to the Company Three Dollars and Three Cents
($3.03) per share (hereinafter called the "Option Purchase Price"), being
not less than 100% of the fair market value of the shares on the date hereof.

            2.
Exercise
Procedures.  The Option may be exercised, subject to the provisions
of Sections 3, 6, 7 and 8 hereof, only within the Option Period and only
(a) by notices in writing of intent to exercise the Option, each of which
notices shall state the number of shares in respect of which the Option
is exercised, delivered to the Corporate Secretary of UAL Corporation,
or mailed by registered or certified mail addressed to the Corporate Secretary
of UAL Corporation, P. O. Box 66919, Chicago, Illinois 60666, from time
to time, until the total number of shares underlying this Option have been
purchased, and (b) by payment to the Company of the aggregate Option Purchase
Price for the number of shares in respect of which the Option is exercised
(together with any taxes required to be withheld) contemporaneously with
its receipt of each such notice.  Payment of such aggregate Option
Purchase Price may be made, in whole or in part, by the delivery, or, if
administratively permitted by the Company, by attestation of ownership,
of whole shares of Common Stock which (i) have a market value equal to
such aggregate Option Purchase Price (or equal to the portion of such aggregate
Option Purchase Price being paid with such shares), (ii) are held of record
by the Employee, and (iii) have been owned by the Employee, either of record
or beneficially through a broker or other nominee, for at least six months. 
The Company may require at the time the Option is exercised a written statement
of the person exercising the Option that his or her intention is to acquire
the shares for investment and without a view to their distribution. 
Shares of Common Stock delivered to Employee pursuant to the exercise of
this Option shall consist exclusively of treasury shares.

            3.
Vesting. 
Subject to Section 6A below, the Option is subject to the following limitations
upon its exercise:

                   
(a)    No shares may be acquired until September 2, 2003.

(b)    Commencing on each consecutive September
2nd, beginning on September 2, 2003, the Employee will be entitled
to exercise the right to purchase one-fourth (1⁄4) of the total number
of shares specified in the Option.

           
4.    Deferral.  The Employee
may elect, in accordance with the Option Deferral Policy as in effect from
time to time, to defer receipt of the shares that result from the exercise
of the Option.  The election to defer receipt of shares is irrevocable.

            5.
Transferability. 
Unless an election to transfer has been made, the Option is not transferable
by the Employee, other than by will or the laws of descent and distribution,
and may be exercised, during the lifetime of the Employee, only by the
Employee.  Upon election, Employee may transfer any part of or all
of the Option, but only to persons provided by, and in a manner consistent
with, the Option Transfer Policy.

            6.
Expiration
- Other Than Retirement.  Subject to Section 6A below, the Option
shall not be exercisable after the Expiration Date.  Subject to Sections
6A and 7, the Expiration Date shall be the earliest to occur of (a) or
(b):

                   
(a)    September 1, 2012; or

(b)    Six months after the Employee's cessation
of employment by the Company and all of its Subsidiaries (without regard
to the Employee's subsequent re-employment by the Company or a Subsidiary)
under any circumstances except Retirement (as defined in Section 7), death
or termination by the Company other than for Cause (as defined in Section
6A) and may be exercised only in respect of the number of shares which
the Employee could have acquired under the Option by the exercise thereof
immediately prior to such cessation of employment.

For purposes of this Section 6 and Sections 6A and 7, and for purposes
of the other provisions of this Agreement, an Employee employed by a subsidiary
or other entity which ceases to meet the definition of a Subsidiary contained
in this Agreement will be treated as though his or her employment has ceased
as of the date the entity ceases to meet such definition.  In the
event of any disagreement as to whether for the purposes of this Option
an Employee's employment by the Company or a Subsidiary has ceased, the
committee appointed to administer the Plan shall have absolute and uncontrolled
discretion to determine whether such employment has ceased, and the effective
date of such cessation of employment, and its determination shall be final
and conclusive on all persons affected thereby.
            6A.
Termination
without Cause or Resignation for Good Reason.  Notwithstanding
the foregoing provisions of this Agreement, in the event that the Employee's
termination of employment occurs by reason of either (i) termination by
the Company for reasons other than Cause, Disability or Retirement (as
defined in Section 7), (ii) resignation by the Employee for Good Reason,
or (iii) death, then the Option shall immediately become fully vested and
exercisable as of the date of termination and shall remain exercisable
for the lesser of five years following the date of termination or the remainder
of the original term, as though the Employee's employment had continued
without regard to such termination.  For purposes of this Agreement,
the terms "Cause," "Disability" and "Good Reason" shall be as defined and
determined in that Employment Agreement entered into by an between the
Employee and the Company effective as of September 2, 2002.

            
7.    Expiration - Retirement.  If cessation
of employment occurs due to Employee's Retirement (as defined below), the
Option may be exercised on or prior to the Expiration Date, and the right
to purchase shares under this Option shall continue to accrue, as provided
in Section 3 above, to the Employee (without regard to the Employee's subsequent
re-employment by the Company or a Subsidiary).  As used in this Agreement,
"Retirement" shall mean an Employee's termination of employment by the
Company and all of its Subsidiaries, other than by reason of death of the
Employee, (i) at any time the Employee is eligible to immediately receive
early or normal benefits under his or her employer's defined benefit pension
plan, including any supplemental defined benefit pension plan or, in all
other cases, (ii) that is determined by the Company, in its sole discretion,
to be a Retirement for purposes of this Agreement.  Notwithstanding
the foregoing, in the event of the Employee's death following the Employee's
Retirement but prior to the Expiration Date, the Option may be exercised
within one year after the date of death (but not later than the Expiration
Date) by his or her estate or by the person or persons to whom his or her
rights under the Option shall pass by will or the laws of descent and distribution,
but only in respect of the number of shares which the Employee could have
acquired under the Option by the exercise thereof immediately prior to
the date of death.

             
8.    Securities Law Compliance.  The Company
shall not be required to issue or deliver any certificate for its Common
Stock purchased upon the exercise of this Option prior to compliance by
the Company with any requirements of any stock exchange on which Common
Stock of the Company may at that time be listed.  If at any time during
the Option Period the Company shall be advised by its counsel that the
shares of Common Stock deliverable upon an exercise of the Option are required
to be registered under the Federal Securities Act of 1933, as amended,
or any state securities law or that delivery of such Common Stock must
be accompanied or preceded by a Prospectus meeting the requirements of
such Act, the Company will use its reasonable efforts to effect such registration
or provide such Prospectus not later than a reasonable time following each
exercise of this Option, but delivery of Common Stock by the Company may
be deferred until such registration is effected or such Prospectus is available. 
If at any time during the Option Period the Company shall be advised by
its counsel that the Common Stock deliverable upon exercise of this Option
are subject to the restrictions on sale imposed on "affiliates" under Rule
144 of the Federal Securities Act of 1933, the Employee will use his or
her best efforts to comply with said Rule 144.  This Option shall
not confer upon the Employee any rights as a shareholder of the Company
prior to the date on which the Employee fulfills all conditions for receipt
of such rights.

            9.
Stock
Splits, Reclassifications, Etc.  In the event the outstanding
shares of Common Stock of the Company shall be changed into an increased
number of shares, through a stock dividend or a split-up of shares, or
into a decreased number of shares, through a combination of shares, then
immediately after the record date for such change, the number of shares
of Common Stock then subject to the Option shall be proportionately increased,
in case of such stock dividend or split-up of shares, or proportionately
decreased, in case of such combination of shares, and the Option Purchase
Price under such Option shall be adjusted to such amount that the aggregate
cost of the shares subject to such Option immediately after such increase
or decrease in shares shall be the same as the aggregate cost of the shares
subject to such Option immediately prior to such increase or decrease in
shares.

            In
the event that, as a result of a reorganization, sale, merger, consolidation
or similar occurrence, there shall be any other change in the shares of
Common Stock of the Company, or of any stock or other securities into which
such Common Stock shall have been changed, or for which it shall have been
exchanged, then the Board of Directors of the Company shall make such equitable
adjustments to the Option (including, but not limited to, changes in the
number or kind, or the Option Purchase Price, of shares then subject to
the Option), as it shall deem appropriate, and any such adjustments shall
be effective and binding on the Employee for all purposes of the Option.

            10.
Use
of Shares for Tax Withholding.  Notwithstanding anything in this
Agreement to the contrary, the Employee may elect, prior to delivery of
the shares arising from exercise of the Option, to satisfy any Federal,
State, local, FICA, Medicare or other tax withholding obligation attributable
to the exercise of the Option by having the Company withhold from the Common
Stock a number of whole shares of Common Stock with a fair market value
equal to the amount of such tax withholding obligations with respect to
which such election is made (with the Employee to pay in cash any remaining
amount of such tax withholding obligation which is less than the fair market
value of a whole share).  The amount withheld pursuant to this Section
shall be calculated based upon the minimum tax rate or rates at which the
Company is required to withhold under applicable law.

            11.
Successors
and Assigns.  This Option shall be binding upon and inure to the
benefit of the parties hereto and the successors and assigns of the Company
and the heirs and personal representatives of the Employee.

            12.
Governing
Law.  This Option shall be governed by the laws of the State of
Illinois applicable to agreements made and to be performed entirely within
such State.

            
13.    Applicability of Plan.  This Option shall
be subject to the terms of the Plan, including, without limitation, Sections
3, 4, 11, 14 and 16 thereof; provided, however, that in the event of any
inconsistency between this Option and the Plan, the terms of this Option
shall govern.

             
14.    Modification.  Except as expressly provided
herein or in the Plan, this Option may not be altered, modified, changed
or discharged, except by a writing signed by or on behalf of both the Company
and the Employee.

             
15.    Securities Trading Policy.  The Employee
acknowledges and agrees to comply with the legal requirements and Company's
policies applicable to trading in UAL securities by the Employee, as described
in the United Airlines Code of Conduct and Securities Trading Policy, as
they appear in Regulations 5-4.

             
IN WITNESS WHEREOF, the Company and the Employee have executed this Option
as of the day and year first above written.

 

  

	UAL CORPORATION
	
	By:  /s/ Francesca M. Maher___________
	Senior Vice President,
	General Counsel and Secretary
	
	
	ACCEPTED:
	/s/ Glenn F. Tilton___________________
	(signature of employee)
	
	Print Name:  Glenn F. Tilton

 

 

 
EXHIBIT B

RESTRICTED STOCK AGREEMENT

AGREEMENT made as of September 2, 2002 between Glenn F. Tilton ("Recipient")
and UAL Corporation (together with its wholly owned subsidiary, United
Air Lines, Inc., the "Company").  For purposes of this Agreement,
the term "Shares" shall mean 100,000 shares of Common Stock, $0.01 par
value ("Common Stock"), of the Company.

WHEREAS, Recipient has been awarded the Shares in accordance with and
subject to the terms of this Agreement.

NOW THEREFORE IT IS AGREED:

1.    Promptly after the execution of this Agreement
by Recipient, the Company shall cause Computershare Investor Services of
Chicago, the transfer agent for the Common Stock (together with its successors
and assigns, the "Transfer Agent"), to make a book entry record showing
ownership for the Shares in the name of the Recipient subject to the terms
and conditions of this Agreement.

The Shares shall be issued from Common Stock reserved for issuance
pursuant to the UAL Corporation 2002 Share Incentive Plan (the "Plan")
as Restricted Share grants under Section 8 of the Plan.
2.    During the Restricted Period (as defined in Section
8 of the Plan) for the Shares, Recipient shall not sell, assign, exchange,
transfer, pledge, hypothecate or otherwise dispose of or encumber any of
such Shares.

3.    Recipient represents that the Shares are
being acquired for investment and that Recipient has no present intention
to transfer, sell or otherwise dispose of the Shares, except in compliance
with applicable securities laws, and the parties agree that the Shares
are being acquired in accordance with and subject to the terms, provisions
and conditions of this Agreement.  These agreements shall bind and
inure to the benefit of the parties' respective heirs, legal representatives,
successors and assigns.

4.    Twenty-five percent of the Shares shall
be released from restrictions under this Agreement on each of the first,
second, third and fourth anniversary dates of this Agreement, subject to
earlier release pursuant to Section 8 of the Plan and as further provided
herein.  A certificate for all Shares granted pursuant to this Agreement
will be issued to Recipient following such anniversary date or, at Recipient's
election, may be transferred in book entry form to Recipient's brokerage
account (subject to any adjustment made therein to withhold Shares to pay
taxes as provided in Section 5 hereof).  Any period during which Shares
are subject to restriction hereunder is herein referred to as the "Restricted
Period." Notwithstanding the foregoing, in the event of separation or termination
of the Recipient's employment with the Company for any reason, including
as a result of the Recipient's retirement, disability or termination for
Cause, but excluding the resignation of the Recipient for Good Reason,
termination by the Company not for Cause or death, then all unreleased,
restricted Shares shall be forfeited upon such separation or termination. 
In the event that the Recipient's termination of employment occurs by reason
of either (i) termination by the Company for reasons other than Cause,
disability or retirement, (ii) resignation by the Recipient for Good Reason
or (iii) death, then all unreleased, restricted Shares shall be immediately
released from all such restrictions under this Agreement.  For purposes
of this Agreement, the terms "Cause" and "Good Reason" shall be as defined
and determined in that Employment Agreement entered into by and between
the Employee and the Company effective as of September 2, 2002.

5.    The Company shall be required to withhold
the amount of taxes required to satisfy any applicable federal, state and
local tax withholding obligations arising from the lapse of restrictions
on Shares.  Recipient may elect to satisfy any such tax obligation
in cash or by authorizing the Company to withhold from the Shares issued
to Recipient as a result of the lapse of the restrictions on Shares, the
number of whole shares of Common Stock required to satisfy such tax obligation,
the number to be determined by the fair market value of the Shares on the
date of the lapse of the restrictions on Shares.  If Recipient elects
to withhold shares of Common Stock to satisfy any such tax obligation,
the Company shall pay to Recipient in cash any remaining proceeds after
the application of whole shares that are more than any such obligation.

6.    The Company hereby confirms that (i) in
the event the outstanding shares of Common Stock of the Company shall be
changed into an increased number of shares, through a stock dividend or
a split-up of shares, or into a decreased number of shares, through a combination
of shares, then immediately after the record date for such change, the
number of Shares then subject to this Agreement shall be proportionately
increased, in case of such stock dividend or split-up of shares, or proportionately
decreased, in case of such combination of shares; and (ii) in the event
that, as result of a reorganization, sale, merger, consolidation or similar
occurrence, there shall be any other change in the shares of Common Stock
of the Company, or of any stock or other securities into which such Common
Stock shall have been changed, or for which it shall have been exchanged,
then equitable adjustments to the Shares then subject to this Agreement
(including, but not limited to, changes in the number or kind of shares
then subject to this Agreement) shall be made.

7.    Recipient understands that the Company
will, and Recipient hereby authorizes the Company to, issue such instructions
to the Transfer Agent as the Company may deem necessary or proper to comply
with the intent and purposes of this Agreement.  This paragraph shall
be deemed to constitute the stock power contemplated by the Plan.

8.    This Agreement shall be binding upon and
inure to the benefit of the parties hereto and the successors and assigns
of the Company and the heirs and personal representatives of the Recipient.

9.    This Agreement shall be subject to the
terms of the Plan; provided, however, that in the event of any inconsistency
between this Agreement and the Plan, the terms of this Agreement shall
govern.

10.    This Agreement shall be governed by the
laws of the State of Illinois applicable to agreements made and to be performed
entirely within such State.

11.    This Agreement may not be altered, modified,
changed or discharged, except by a writing signed by or on behalf of both
the Company and the Recipient.

IN WITNESS WHEREOF, the parties have signed this Agreement as of
the date first written above.

 

 

		UAL CORPORATION
		
	/s/ Glenn F. Tilton______________	By: /s/ Francesca M. Maher_________
	Recipient	Name: Francesca M. Maher
		Title:    Senior Vice President, 
		           General
Counsel and Secretary
		

 

 

EXHIBIT C

GLENN F. TILTON

SECULAR TRUST AGREEMENT NO. 1

            This
Agreement is made as of this 5th day of September, 2002, by and among UAL
Corporation, a Delaware corporation (the "Company"), Glenn F. Tilton (the
"Executive") and The Northern Trust Company, an Illinois corporation, as
trustee (the "Trustee").

RECITALS:

        WHEREAS, this Trust
Agreement is being entered into pursuant to the terms of the Employment
Agreement dated September 5, 2002 (the "Employment Agreement"), attached
hereto, for the purpose of establishing a trust (the "Trust") in accordance
therewith; and

        WHEREAS, the Trustee
agrees to receive payment from the Company to be held pursuant to the terms
of this Trust Agreement (the "Agreement").

        NOW, THEREFORE, in
consideration of the mutual covenants herein contained and other valuable
consideration, the Company, the Executive and the Trustee agree as follows:

SECTION 1.   Establishment of Trust

(a)     The Company hereby pays to the
Trustee $1,500,000, which payment shall effect an irrevocable transfer
and conveyance of all of the Company's legal title and ownership in and
to such funds, and such funds shall become the principal of the Trust to
be held, administered and disposed of by the Trustee as provided in this
Trust Agreement.  The property held by the Trustee hereunder shall
constitute the trust fund ("Trust Fund").
(b)     The Trust Fund shall be held for the benefit
of the Executive on the terms and conditions hereinafter set forth.

(c)     The Trust hereby established is irrevocable.

(d)     The Trust is intended to be taxed as a simple
trust pursuant to the provisions of Section 651 of the Internal Revenue
Code of 1986, as amended ("Code") and, as such, the Trust's income is required
to be distributed currently to Executive at the times provided herein. 
The Trust's fiscal year is the calendar year.

(e)     Except for the limited and contingent right
to receive payment of the Trust Fund as provided in Section 9(b) below,
the Company shall have no legal or beneficial right or interest whatsoever
in or to the Trust or the Trust Fund.  Without limiting the generality
of the foregoing, the Trust Fund and the principal and income of the Trust
shall not constitute assets or property of the Company and shall not be
subject to the claims of creditors of the Company in the event of the Company's
insolvency or bankruptcy and in such event Company shall not assert that
any portion of the Trust Fund constitutes assets of the debtor's estate.

(f)     This Trust shall terminate immediately upon
distribution of the principal and earnings of Trust Fund to the Executive
or, solely to the extent provided by Section 2(c), upon forfeiture.

(g)     In no event shall this Trust terminate later
than 21 years after the death of the Executive and his current spouse.

SECTION 2.  Payments to or on Behalf of Executive
(a)     The Trustee shall hold, manage,
invest and reinvest the Trust Fund, collect the income therefrom and dispose
of the income and principal of the Trust as provided in this Section 2.
(b)     Subject only to Section 2(c) below, Executive
shall be fully vested with respect to his interest in the Trust Fund and
shall have all rights, title and ownership thereof.

(c)     If, as provided in the Employment Agreement,
Executive's employment is terminated by Executive other than for Good Reason
and the effective date of such termination is on or before September 2,
2003, then Executive will forfeit 100% of his interest in the Trust Fund. 
Executive or the Company may provide written notice to the Trustee of the
Executive's termination (with a copy to the other party) and stating therein
whether such termination constitutes termination by the Executive for Good
Reason.  If the other party confirms the content of the notice, or
fails to object to it within 30 days, distribution will be made in accordance
with such notice and Section 2(d) below.  In the event that the parties
disagree with respect to the notice, the Trustee shall hold the Trust Fund
and all subsequent earnings thereon until such time as the reason for termination
has been resolved in accordance with the dispute resolution provisions
of the Employment Agreement.  In no event shall the Executive be deemed
to have forfeited his interest in the Trust or the Trust Fund if his employment
terminates as a result of a repudiation, rejection or similar breach of
the Employment Agreement by the Company.

(d)     In the event that the Trustee has not been
provided written notice, as provided in Section 2(c) above, that there
has occurred a forfeiture, or that there is a dispute with respect to a
notice, the Trust Fund will be paid in full to Executive in a single lump-sum
cash amount as of the first business day of January next following the
earlier of September 2, 2003 or the Executive's termination of employment.

(e)     If the Executive is deceased, then any amounts
payable to the Executive pursuant to the Trust shall instead be paid to
the Executive's beneficiary as provided for under the Employment Agreement.

(f)      In the event the Executive must include
in his gross income any or all of the value of his interest in the Trust
(whether or not prior to the distribution of amounts from the Trust), then
the Trustee, upon direction from the Company, shall withhold any federal,
state and local taxes of whatever type that may be required to be withheld
with respect to such inclusion of income, and shall distribute such amounts
to the Company for its proper submission and reporting by the Company. 
Any amounts so included in the gross income of the Executive shall be treated
as additional compensation from the Company on the earlier of September
2, 2003 or the Executive's termination equal to the value of the Trust
principal as of such date. The computation of the amount to be withheld
and submitted to the proper tax authorities shall be determined by the
Company.

(g)     All current earnings (within the meaning
of Code section 651) arising from investment of the Trust Fund shall be
distributed to the Executive prior to the last business day of January
next following the date earned by the Trust.  Such income shall be
reported and taxed to the Executive under Code Section 652 as a trust distribution
and not as additional compensation from the Company. The Trustee, or such
other tax advisor as may be selected by the Executive, shall prepare the
annual tax returns for the Trust and deliver such returns to the Trustee
for review and submission to the proper tax authorities.

SECTION 3.  Payments to Company

The Company shall have no beneficial interest in the principal or earnings
hereunder, except as provided in Section 9(b).
SECTION 4.  Investment Authority
(a)     The Trustee shall have the authority
to manage and control the Trust assets, upon written direction from the
Executive and shall follow directions with respect to the investment of
the Trust Fund from the Executive or any investment advisor(s), which may
include affiliates of the Trustee.  In the absence of such direction,
the Trustee shall invest the corpus of the Trust Fund in short term securities
of the United States Government.  Pursuant to such authority and subject
to the terms of the Agreement, with respect to any and all property at
any time held by it hereunder, and whether constituting principal or income
therefrom, the Trustee shall have the following powers, in addition to
those conferred by law:
(1)    To retain any such property as investment
without regard to the proportion which such property or property of a similar
character, so held, may bear to the entire amount of the Trust in which
such property is held whether or not such property is of the class in which
the Trustee is authorized by law or any rule of court to invest trust funds.
(2)    To sell such property at either public or private
sale for cash or on credit; to exchange such property; and to grant options
for the purchase thereof.

(3)    To invest and reinvest in property of any character,
real or personal, foreign or domestic, including, but without limiting
the generality of the foregoing, bonds, notes, securities, mortgages, common
and preferred stocks, partnerships, shares or interests in investment trusts
and participation in any common trust fund maintained by the Trustee, and
open-end and closed-end investment companies and mutual funds, including
(to the extent permitted by applicable law) companies or funds to which
the Trustee acts as investment advisor and/or performs other services,
regardless of the purposes for which any such company or fund was created,
and any partnership, limited or unlimited, joint venture and other forms
of joint enterprise created for any lawful purpose.

(4)    With respect to any investment of the Trust, to
consent to and participate in any plan of reorganization, consolidation,
merger, combination, or other similar plan, and to consent to any contract,
lease, mortgage, purchase, sale or other action by any corporation pursuant
to such plan.

(5)    With respect to any investment of the Trust, to
deposit any such property with any protective reorganization or similar
committee, to delegate discretionary power thereto, to pay part of its
expenses and compensation and any assessments levied with respect to such
property.

(6)    To exercise all conversion, subscription, voting
and other rights of whatsoever nature pertaining to any such property and
to grant proxies, discretionary or otherwise, in respect thereof.

(7)    To make loans of securities held in the Trust
to registered brokers and dealers upon such terms and conditions as are
permitted by applicable law and regulations, and in each instance to permit
the securities so let to be registered in the name of the borrower or a
nominee of the borrower, provided that in each instance the loan is adequately
secured and neither the borrower nor any affiliate of the borrower has
discretionary authority or control with respect to the assets of the Trust
involved in the transaction or renders investment advice with respect to
those assets.

(8)    To borrow money in such amounts and upon such
terms, from itself individually or from others, for such purpose
or purposes as it, in its discretion, may determine and in connection therewith
to execute promissory notes, mortgages or other obligations and to pledge
or mortgage any such property as security.

(9)    To employ agents, experts and counsel, including
legal and investment counsel, and to delegate discretionary powers to,
and rely upon information and advice furnished by, such agents, experts
and counsel and to pay reasonable fees to such agents, experts and counsel.

(10)   To extend the time of payment of any obligation held
by it and to compromise, settle or submit to arbitration upon such terms
as to it may seem proper, or to release, any claim in favor of the Trust
created hereunder.

(11)   From time to time to register any property in the name
of its nominee or in its own name or to hold it unregistered or in such
form that title shall pass by delivery and to place property in a custody
or safekeeping account.

(12)   To receive additional property from any source and
add it to, and mingle it with, the Trust hereunder.

(13)   To make any division or distribution in cash or in
other property or undivided interests therein, or partly in cash and partly
in other property or undivided interests therein.

(14)   To make executory contracts and to grant options for
any purpose and upon any terms, and to make such contracts and options
binding on the Trust and enforceable against any property included in the
Trust estate.

(15)   To do all such acts, take all such proceedings and
exercise all such rights and privileges, although not hereinbefore specifically
mentioned, with relation to any such property, as if the absolute owner
thereof, and in connection therewith to make, execute and deliver any instruments
and to enter into any covenants or agreements binding the Trust hereunder.

(16)   Notwithstanding any powers granted to the Trustee pursuant
to this Trust Agreement or by applicable law, the Trustee shall not have
any power that could give this Trust the objective of carrying on a business
and dividing the gains therefrom, within the meaning of Section 301.7701-2
of the Procedure and Administration Regulations promulgated under the Code.

(b)     In no event may Trustee invest in securities
(including stock or rights to acquire stocks) or obligations issued by
the Company, or any affiliate of the Company, other than a de minimus amount
held in common investment vehicles in which the Trustee invests.

SECTION 5.  Responsibility of Trustee
(a)     The Trustee shall prudently discharge
its duties hereunder solely for the purposes set forth herein.
(b)     Persons dealing with the Trustee shall not
be obligated to look to the application of any moneys or other property
paid or delivered to the Trustee or to inquire into the authority of the
Trustee as to any transaction.  All powers granted to the Trustee
shall continue until actual distribution of the property.

(c)     The Trustee shall incur no liability whatsoever
by reason of any action taken or not taken pursuant to the provisions of
this Agreement except for negligence, gross negligence or willful misconduct.

(d)     The Trustee may consult with legal counsel
(who, with the consent of Executive, may also be counsel for the Company
generally) with respect to any of its duties or obligations hereunder. 
The Trustee may have agents, accountants, actuaries, investment advisors,
financial consultants or other professionals to assist it in performing
any of its duties or obligations hereunder.

SECTION 6.  Resignation and Removal of Trustee
(a)     If the Trustee shall resign or
cease to act for any reason, the Company shall have the power to appoint
a successor trustee.  Under no circumstances shall the Company act
as trustee hereunder.
(b)     The Trustee may resign at any time upon
sixty (60) days' prior written notice to the Company.  In the event
a trustee, or a successor trustee resigns, it shall be relieved of all
further liability hereunder other than to account for all property received
while acting as trustee and, if applicable, to turn over such property
to a successor trustee.

(c)     The Company, with the approval of the Executive,
may remove the Trustee at any time upon sixty (60) days' prior written
notice to the Trustee, and shall appoint a successor trustee.  In
the event a trustee is removed it shall be relieved of all further liability
hereunder other than to account for all property received while acting
as trustee and, if applicable, to turn over such property to a successor
trustee.

(d)     The appointment of a successor trustee by
the Company shall be subject to the written consent of the Executive.

(e)     No successor trustee shall be liable or
responsible in any way for the acts or defaults of any predecessor trustee,
nor for any loss or expense caused by anything done or neglected to be
done by any predecessor trustee, but such successor trustee shall be liable
only for its own acts and defaults with respect to the Trust funds actually
received by it as trustee.  Every successor trustee shall be vested
with all the duties, rights, titles, and powers, whether discretionary
or otherwise, of the original trustee.  No Trustee or successor
trustee shall be required to give any bond or other security for the faithful
performance of its duties as such.

SECTION 7.  Accounting by Trustee
           Trustee
shall keep accurate and detailed records of all investments, receipts,
disbursements and all other transactions required to be made, including,
without limitation, such specific records as shall be agreed upon in writing
between the Executive and the Trustee.  Within ninety (90) days after
the close of each calendar year and within ninety (90) days after the removal
or resignation of the Trustee, the Trustee shall deliver to the Executive
(with a copy to the Company) a written account of the administration of
the Trust during such year or during the period from the close of such
preceding year to the date of such removal or resignation setting forth
all investments, receipts, disbursements and other transactions effected
by it, including a description of all securities and investments purchased
and sold with the cost or net proceeds of such purchase or sales, and showing
all cash, securities, and other property held in the Trust at the end of
such year or as of the date of such removal or resignation, as the case
may be.

SECTION 8.  Compensation and Expenses of Trustee.

(a)     The Trustee's fees for the first
twelve months have been paid by the Company.  Thereafter, to the extent
the Trustee's fees are not paid by the Company or the Executive, the fees
shall be paid from the Trust.
(b)     All of the on-going administrative expenses
shall be paid from the Trust.

SECTION 9.  Amendment and Termination
(a)     The Agreement and the Trust hereunder
may be amended any time and to anyextent by written instrument executed
by the Trustee, the Executive and the Company.
(b)     The Trust shall not terminate until the
date on which the corpus of the Trust has been distributed to the Executive,
or forfeited in accordance with Section 2(c), in which case any assets
remaining in the Trust shall be paid to the Company.

SECTION 10.  Miscellaneous
(a)     Any direction of the Trustee by
the Company pursuant to any of the provisions of the Agreement shall be
evidenced by a written notice or written direction to such effect over
the signature of any officer or other representative of the Company who
shall have been certified in writing to the Trustee by the Secretary of
the Company, as having such authority and the Trustee shall be fully protected
in acting in accordance with such written notices or written directions. 
Until written notice is given to the contrary, communications to the Trustee
shall be sent to it as its office at The Northern Trust Company, Attn:
Scott Borton/RM for UAL, 50 South LaSalle Street, Chicago, IL 60675.
(b)     The Agreement shall inure to the benefit
of and be binding upon the Company, the Executive and the Trustee and their
successors and assigns.

(c)      The Executive's interest and his beneficiary's
interest in income or principal hereunder shall not be subject to anticipation,
assignment, pledge, sale or transfer in any manner, nor shall the Executive
nor the Executive's beneficiary have the power to anticipate, encumber
or change such interest, nor shall such interest, while in the possession
of the Trustee, be liable for or subject to the debts, contracts, obligations,
liabilities or torts of the Executive or the Executive's spouse.

(d)     Wherever necessary or appropriate, the use
herein of any gender shall be deemed to include the other gender and the
use herein of either the singular or the plural shall be deemed to include
the other.

(e)     Any provision of the Agreement prohibited
by law shall be ineffective to the extent of any such prohibition, without
affecting the remaining portions hereof.

(f)     This trust is not intended to be an employee
benefit plan within the intendment of Section 3(2) of the Employee Retirement
Income Security Act of 1974, as amended.

(g)     The Agreement shall become effective, as
of the day and year first above written, upon the execution of the Agreement
by the Company, Trustee and Executive.  It shall be governed and construed
in all respect according to the law of the State of Illinois.  Notwithstanding
the application of Illinois law, the actual administration of the Trust
may be conducted in such location, and the location of the Trust Fund assets
may be changed, as the Trustee, in its sole discretion, may determine from
time to time.

IN WITNESS WHEREOF, the parties have executed this Trust Agreement
as of the date first above written.

 

 
	Attest:	UAL CORPORATION
	/s/ Mary Jo Georgen_____________	
	Name:  Mary Jo Georgen	By: /s/ Francesca M. Maher___________
	Title:     Assistant Corporate Secretary	Name:  Francesca M. Maher
		Title:     Senior Vice President, 
		           
General Counsel and Secretary
	Attest:	
	/s/ Helen M. Stirk_______________	THE NORTHERN TRUST COMPANY, as Trustee
	Name:  Helen M. Stirk	
	Title:     Senior Vice President and 	By: /s/ Scott G. Borton_______________
	           
Assistant Corporate Secretary	Name:  Scott G. Borton
		Title:     Vice President
		
		/s/ Glenn F. Tilton___________________
		GLENN F. TILTON
		

 

 

 

 

 
EXHIBIT D

 

GLENN F. TILTON

SECULAR TRUST AGREEMENT NO. 2

        This Agreement is made as of
this 5th day of September, 2002, by and among UAL Corporation, a Delaware
corporation (the "Company"), Glenn F. Tilton (the "Executive") and The
Northern Trust Company, an Illinois corporation, as trustee (the "Trustee").

RECITALS:

        WHEREAS, this Trust Agreement
is being entered into pursuant to the terms of the Employment Agreement
dated September 5, 2002 (the "Employment Agreement"), attached hereto,
for the purpose of establishing a trust (the "Trust") in accordance therewith;
and
        WHEREAS, the Trustee
agrees to receive payment from the Company to be held pursuant to the terms
of this Trust Agreement (the "Agreement").

        NOW, THEREFORE, in
consideration of the mutual covenants herein contained and other valuable
consideration, the Company, the Executive and the Trustee agree as follows:

SECTION 1.    Establishment of Trust

(a)    The Company hereby pays to the Trustee
$1,500,000, which payment shall effect an irrevocable transfer and conveyance
of all of the Company's legal title and ownership in and to such funds,
and such funds shall become the principal of the Trust to be held, administered
and disposed of by the Trustee as provided in this Trust Agreement. 
The property held by the Trustee hereunder shall constitute the trust fund
("Trust Fund").
(b)    The Trust Fund shall be held for the benefit of
the Executive on the terms and conditions hereinafter set forth.

(c)    The Trust hereby established is irrevocable.

(d)    The Trust is intended to be taxed as a simple
trust pursuant to the provisions of Section 651 of the Internal Revenue
Code of 1986, as amended ("Code") and, as such, the Trust's income is required
to be distributed currently to Executive at the times provided herein. 
The Trust's fiscal year is the calendar year.

(e)    Except for the limited and contingent right to
receive payment of the Trust Fund as provided in Section 9(b) below, the
Company shall have no legal or beneficial right or interest whatsoever
in or to the Trust or the Trust Fund.  Without limiting the generality
of the foregoing, the Trust Fund and the principal and income of the Trust
shall not constitute assets or property of the Company and shall not be
subject to the claims of creditors of the Company in the event of the Company's
insolvency or bankruptcy and in such event Company shall not assert that
any portion of the Trust Fund constitutes assets of the debtor's estate.

(f)     This Trust shall terminate immediately upon
distribution of the principal and earnings of Trust Fund to the Executive
or, solely to the extent provided by Section 2(c), upon forfeiture.

(g)    In no event shall this Trust terminate later than
21 years after the death of the Executive and his current spouse.

SECTION 2.  Payments to or on Behalf of Executive
(a)    The Trustee shall hold, manage, invest
and reinvest the Trust Fund, collect the income therefrom and dispose of
the income and principal of the Trust as provided in this Section 2.
(b)    Subject only to Section 2(c) below, Executive
shall be fully vested with respect to his interest in the Trust Fund and
shall have all rights, title and ownership thereof.

(c)    If, as provided in the Employment Agreement, Executive's
employment is terminated by Executive other than for Good Reason and the
effective date of such termination is on or before September 2, 2004, then
Executive will forfeit 100% of his interest in the Trust Fund.  Executive
or the Company may provide written notice to the Trustee of the Executive's
termination (with a copy to the other party) and stating therein whether
such termination constitutes termination by the Executive for Good Reason. 
If the other party confirms the content of the notice, or fails to object
to it within 30 days, distribution will be made in accordance with such
notice and Section 2(d) below.  In the event that the parties disagree
with respect to the notice, the Trustee shall hold the Trust Fund and all
subsequent earnings thereon until such time as the reason for termination
has been resolved in accordance with the dispute resolution provisions
of the Employment Agreement.  In no event shall the Executive be deemed
to have forfeited his interest in the Trust or the Trust Fund if his employment
terminates as a result of a repudiation, rejection or similar breach of
the Employment Agreement by the Company.

(d)    In the event that the Trustee has not been provided
written notice, as provided in Section 2(c) above, that there has occurred
a forfeiture, or that there is a dispute with respect to a notice, the
Trust Fund will be paid in full to Executive in a single lump-sum cash
amount as of the first business day of January next following the earlier
of September 2, 2004 or the Executive's termination of employment.

(e)    If the Executive is deceased, then any amounts
payable to the Executive pursuant to the Trust shall instead be paid to
the Executive's beneficiary as provided for under the Employment Agreement.

(f)     In the event the Executive must include
in his gross income any or all of the value of his interest in the Trust
(whether or not prior to the distribution of amounts from the Trust), then
the Trustee, upon direction from the Company, shall withhold any federal,
state and local taxes of whatever type that may be required to be withheld
with respect to such inclusion of income, and shall distribute such amounts
to the Company for its proper submission and reporting by the Company. 
Any amounts so included in the gross income of the Executive shall be treated
as additional compensation from the Company on the earlier of September
2, 2004 or the Executive's termination equal to the value of the Trust
principal as of such date. The computation of the amount to be withheld
and submitted to the proper tax authorities shall be determined by the
Company.

(g)     All current earnings (within the meaning
of Code section 651) arising from investment of the Trust Fund shall be
distributed to the Executive prior to the last business day of January
next following the date earned by the Trust.  Such income shall be
reported and taxed to the Executive under Code Section 652 as a trust distribution
and not as additional compensation from the Company. The Trustee, or such
other tax advisor as may be selected by the Executive, shall prepare the
annual tax returns for the Trust and deliver such returns to the Trustee
for review and submission to the proper tax authorities.

SECTION 3.  Payments to Company

The Company shall have no beneficial interest in the principal or earnings
hereunder, except as provided in Section 9(b).
SECTION 4.  Investment Authority
(a)    The Trustee shall have the authority
to manage and control the Trust assets, upon written direction from the
Executive and shall follow directions with respect to the investment of
the Trust Fund from the Executive or any investment advisor(s), which may
include affiliates of the Trustee.  In the absence of such direction,
the Trustee shall invest the corpus of the Trust Fund in short term securities
of the United States Government.  Pursuant to such authority and subject
to the terms of the Agreement, with respect to any and all property at
any time held by it hereunder, and whether constituting principal or income
therefrom, the Trustee shall have the following powers, in addition to
those conferred by law:
(1)    To retain any such property as investment
without regard to the proportion which such property or property of a similar
character, so held, may bear to the entire amount of the Trust in which
such property is held whether or not such property is of the class in which
the Trustee is authorized by law or any rule of court to invest trust funds.
(2)    To sell such property at either public or private
sale for cash or on credit; to exchange such property; and to grant options
for the purchase thereof.

(3)    To invest and reinvest in property of any character,
real or personal, foreign or domestic, including, but without limiting
the generality of the foregoing, bonds, notes, securities, mortgages, common
and preferred stocks, partnerships, shares or interests in investment trusts
and participation in any common trust fund maintained by the Trustee, and
open-end and closed-end investment companies and mutual funds, including
(to the extent permitted by applicable law) companies or funds to which
the Trustee acts as investment advisor and/or performs other services,
regardless of the purposes for which any such company or fund was created,
and any partnership, limited or unlimited, joint venture and other forms
of joint enterprise created for any lawful purpose.

(4)    With respect to any investment of the Trust, to
consent to and participate in any plan of reorganization, consolidation,
merger, combination, or other similar plan, and to consent to any contract,
lease, mortgage, purchase, sale or other action by any corporation pursuant
to such plan.

(5)    With respect to any investment of the Trust, to
deposit any such property with any protective reorganization or similar
committee, to delegate discretionary power thereto, to pay part of its
expenses and compensation and any assessments levied with respect to such
property.

(6)     To exercise all conversion, subscription,
voting and other rights of whatsoever nature pertaining to any such property
and to grant proxies, discretionary or otherwise, in respect thereof.

(7)     To make loans of securities held in the
Trust to registered brokers and dealers upon such terms and conditions
as are permitted by applicable law and regulations, and in each instance
to permit the securities so let to be registered in the name of the borrower
or a nominee of the borrower, provided that in each instance the loan is
adequately secured and neither the borrower nor any affiliate of the borrower
has discretionary authority or control with respect to the assets of the
Trust involved in the transaction or renders investment advice with respect
to those assets.

(8)     To borrow money in such amounts and upon
such terms, from itself individually or from others, for such purpose
or purposes as it, in its discretion, may determine and in connection therewith
to execute promissory notes, mortgages or other obligations and to pledge
or mortgage any such property as security.

(9)     To employ agents, experts and counsel, including
legal and investment counsel, and to delegate discretionary powers to,
and rely upon information and advice furnished by, such agents, experts
and counsel and to pay reasonable fees to such agents, experts and counsel.

(10)    To extend the time of payment of any obligation
held by it and to compromise, settle or submit to arbitration upon such
terms as to it may seem proper, or to release, any claim in favor of the
Trust created hereunder.

(11)    From time to time to register any property in
the name of its nominee or in its own name or to hold it unregistered or
in such form that title shall pass by delivery and to place property in
a custody or safekeeping account.

(12)    To receive additional property from any source
and add it to, and mingle it with, the Trust hereunder.

(13)    To make any division or distribution in cash
or in other property or undivided interests therein, or partly in cash
and partly in other property or undivided interests therein.

(14)    To make executory contracts and to grant options
for any purpose and upon any terms, and to make such contracts and options
binding on the Trust and enforceable against any property included in the
Trust estate.

(15)     To do all such acts, take all such proceedings
and exercise all such rights and privileges, although not hereinbefore
specifically mentioned, with relation to any such property, as if the absolute
owner thereof, and in connection therewith to make, execute and deliver
any instruments and to enter into any covenants or agreements binding the
Trust hereunder.

(16)     Notwithstanding any powers granted to the
Trustee pursuant to this Trust Agreement or by applicable law, the Trustee
shall not have any power that could give this Trust the objective of carrying
on a business and dividing the gains therefrom, within the meaning of Section
301.7701-2 of the Procedure and Administration Regulations promulgated
under the Code.

(b)      In no event may Trustee invest in securities
(including stock or rights to acquire stocks) or obligations issued by
the Company, or any affiliate of the Company, other than a de minimus amount
held in common investment vehicles in which the Trustee invests.

SECTION 5.  Responsibility of Trustee
(a)    The Trustee shall prudently discharge
its duties hereunder solely for the purposes set forth herein.
(b)    Persons dealing with the Trustee shall not be
obligated to look to the application of any moneys or other property paid
or delivered to the Trustee or to inquire into the authority of the Trustee
as to any transaction.  All powers granted to the Trustee shall continue
until actual distribution of the property.

(c)    The Trustee shall incur no liability whatsoever
by reason of any action taken or not taken pursuant to the provisions of
this Agreement except for negligence, gross negligence or willful misconduct.

(d)    The Trustee may consult with legal counsel (who,
with the consent of Executive, may also be counsel for the Company generally)
with respect to any of its duties or obligations hereunder.  The Trustee
may have agents, accountants, actuaries, investment advisors, financial
consultants or other professionals to assist it in performing any of its
duties or obligations hereunder.

SECTION 6.  Resignation and Removal of Trustee
(a)    If the Trustee shall resign or cease
to act for any reason, the Company shall have the power to appoint a successor
trustee.  Under no circumstances shall the Company act as trustee
hereunder.
(b)    The Trustee may resign at any time upon sixty
(60) days' prior written notice to the Company.  In the event a trustee,
or a successor trustee resigns, it shall be relieved of all further liability
hereunder other than to account for all property received while acting
as trustee and, if applicable, to turn over such property to a successor
trustee.

(c)     The Company, with the approval of the Executive,
may remove the Trustee at any time upon sixty (60) days' prior written
notice to the Trustee, and shall appoint a successor trustee.  In
the event a trustee is removed it shall be relieved of all further liability
hereunder other than to account for all property received while acting
as trustee and, if applicable, to turn over such property to a successor
trustee.

(d)     The appointment of a successor trustee by
the Company shall be subject to the written consent of the Executive.

(e)      No successor trustee shall be liable
or responsible in any way for the acts or defaults of any predecessor trustee,
nor for any loss or expense caused by anything done or neglected to be
done by any predecessor trustee, but such successor trustee shall be liable
only for its own acts and defaults with respect to the Trust funds actually
received by it as trustee.  Every successor trustee shall be vested
with all the duties, rights, titles, and powers, whether discretionary
or otherwise, of the original trustee.  No Trustee or successor
trustee shall be required to give any bond or other security for the faithful
performance of its duties as such.

SECTION 7.  Accounting by Trustee
          Trustee shall
keep accurate and detailed records of all investments, receipts, disbursements
and all other transactions required to be made, including, without limitation,
such specific records as shall be agreed upon in writing between the Executive
and the Trustee.  Within ninety (90) days after the close of each
calendar year and within ninety (90) days after the removal or resignation
of the Trustee, the Trustee shall deliver to the Executive (with a copy
to the Company) a written account of the administration of the Trust during
such year or during the period from the close of such preceding year to
the date of such removal or resignation setting forth all investments,
receipts, disbursements and other transactions effected by it, including
a description of all securities and investments purchased and sold with
the cost or net proceeds of such purchase or sales, and showing all cash,
securities, and other property held in the Trust at the end of such year
or as of the date of such removal or resignation, as the case may be.

SECTION 8.  Compensation and Expenses of Trustee.

(a)    The Trustee's fees for the first twelve
months have been paid by the Company.  Thereafter, to the extent the
Trustee's fees are not paid by the Company or the Executive, the fees shall
be paid from the Trust.

(b)    All of the on-going administrative expenses
shall be paid from the Trust.

SECTION 9.  Amendment and Termination
(a)    The Agreement and the Trust hereunder
may be amended any time and to anyextent by written instrument executed
by the Trustee, the Executive and the Company.
(b)    The Trust shall not terminate until the date on
which the corpus of the Trust has been distributed to the Executive, or
forfeited in accordance with Section 2(c), in which case any assets remaining
in the Trust shall be paid to the Company.

SECTION 10.  Miscellaneous
(a)    Any direction of the Trustee by the Company
pursuant to any of the provisions of the Agreement shall be evidenced by
a written notice or written direction to such effect over the signature
of any officer or other representative of the Company who shall have been
certified in writing to the Trustee by the Secretary of the Company, as
having such authority and the Trustee shall be fully protected in acting
in accordance with such written notices or written directions.  Until
written notice is given to the contrary, communications to the Trustee
shall be sent to it as its office at The Northern Trust Company, Attn:
Scott Borton/RM for UAL, 50 South LaSalle Street, Chicago, IL 60675.
(b)    The Agreement shall inure to the benefit of and
be binding upon the Company, the Executive and the Trustee and their successors
and assigns.

(c)    The Executive's interest and his beneficiary's
interest in income or principal hereunder shall not be subject to anticipation,
assignment, pledge, sale or transfer in any manner, nor shall the Executive
nor the Executive's beneficiary have the power to anticipate, encumber
or change such interest, nor shall such interest, while in the possession
of the Trustee, be liable for or subject to the debts, contracts, obligations,
liabilities or torts of the Executive or the Executive's spouse.

(d)    Wherever necessary or appropriate, the use herein
of any gender shall be deemed to include the other gender and the use herein
of either the singular or the plural shall be deemed to include the other.

(e)    Any provision of the Agreement prohibited by law
shall be ineffective to the extent of any such prohibition, without affecting
the remaining portions hereof.

(f)    This trust is not intended to be an employee benefit
plan within the intendment of Section 3(2) of the Employee Retirement Income
Security Act of 1974, as amended.

(g)    The Agreement shall become effective, as of the
day and year first above written, upon the execution of the Agreement by
the Company, Trustee and Executive.  It shall be governed and construed
in all respect according to the law of the State of Illinois.  Notwithstanding
the application of Illinois law, the actual administration of the Trust
may be conducted in such location, and the location of the Trust Fund assets
may be changed, as the Trustee, in its sole discretion, may determine from
time to time.

IN WITNESS WHEREOF, the parties have executed this Trust Agreement
as of the date first above written.

 

 
	Attest:	UAL CORPORATION
	/s/ Mary Jo Georgen_____________	
	Name:  Mary Jo Georgen	By: /s/ Francesca M. Maher___________
	Title:     Assistant Corporate Secretary	Name:  Francesca M. Maher
		Title:     Senior Vice President, 
		           
General Counsel and Secretary
	Attest:	
	/s/ Helen M. Stirk_______________	THE NORTHERN TRUST COMPANY, as Trustee
	Name:  Helen M. Stirk	
	Title:     Senior Vice President and 	By: /s/ Scott G. Borton_______________
	           
Assistant Corporate Secretary	Name:  Scott G. Borton
		Title:     Vice President
		
		/s/ Glenn F. Tilton___________________
		GLENN F. TILTON
		

 

 

 

 

 

 
EXHIBIT E

 

GLENN F. TILTON

SECULAR TRUST AGREEMENT NO. 3

            This
Agreement is made as of this 5th day of September, 2002, by and among UAL
Corporation, a Delaware corporation (the "Company"), Glenn F. Tilton (the
"Executive") and The Northern Trust Company, an Illinois corporation, as
trustee (the "Trustee").

RECITALS:

            WHEREAS,
this Trust Agreement is being entered into pursuant to the terms of the
Employment Agreement dated September 5, 2002 (the "Employment Agreement"),
attached hereto, for the purpose of establishing a trust (the "Trust")
in accordance therewith; and
           
WHEREAS, the Trustee agrees to receive payment from the Company to
be held pursuant to the terms of this Trust Agreement (the "Agreement").

           
NOW, THEREFORE, in consideration of the mutual covenants herein contained
and other valuable consideration, the Company, the Executive and the Trustee
agree as follows:

SECTION 1.  Establishment of Trust

(a)    The Company hereby pays to the Trustee
$1,500,000, which payment shall effect an irrevocable transfer and conveyance
of all of the Company's legal title and ownership in and to such funds,
and such funds shall become the principal of the Trust to be held, administered
and disposed of by the Trustee as provided in this Trust Agreement. 
The property held by the Trustee hereunder shall constitute the trust fund
("Trust Fund").
(b)    The Trust Fund shall be held for the benefit of
the Executive on the terms and conditions hereinafter set forth.

(c)    The Trust hereby established is irrevocable.

(d)    The Trust is intended to be taxed as a simple
trust pursuant to the provisions of Section 651 of the Internal Revenue
Code of 1986, as amended ("Code") and, as such, the Trust's income is required
to be distributed currently to Executive at the times provided herein. 
The Trust's fiscal year is the calendar year.

(e)     Except for the limited and contingent right
to receive payment of the Trust Fund as provided in Section 9(b) below,
the Company shall have no legal or beneficial right or interest whatsoever
in or to the Trust or the Trust Fund.  Without limiting the generality
of the foregoing, the Trust Fund and the principal and income of the Trust
shall not constitute assets or property of the Company and shall not be
subject to the claims of creditors of the Company in the event of the Company's
insolvency or bankruptcy and in such event Company shall not assert that
any portion of the Trust Fund constitutes assets of the debtor's estate.

(f)      This Trust shall terminate immediately
upon distribution of the principal and earnings of Trust Fund to the Executive
or, solely to the extent provided by Section 2(c), upon forfeiture.

(g)      In no event shall this Trust terminate
later than 21 years after the death of the Executive and his current spouse.

SECTION 2.  Payments to or on Behalf of Executive
(a)    The Trustee shall hold, manage, invest
and reinvest the Trust Fund, collect the income therefrom and dispose of
the income and principal of the Trust as provided in this Section 2.
(b)    Subject only to Section 2(c) below, Executive
shall be fully vested with respect to his interest in the Trust Fund and
shall have all rights, title and ownership thereof.

(c)     If, as provided in the Employment Agreement,
Executive's employment is terminated by Executive other than for Good Reason
and the effective date of such termination is on or before September 2,
2005, then Executive will forfeit 100% of his interest in the Trust Fund. 
Executive or the Company may provide written notice to the Trustee of the
Executive's termination (with a copy to the other party) and stating therein
whether such termination constitutes termination by the Executive for Good
Reason.  If the other party confirms the content of the notice, or
fails to object to it within 30 days, distribution will be made in accordance
with such notice and Section 2(d) below.  In the event that the parties
disagree with respect to the notice, the Trustee shall hold the Trust Fund
and all subsequent earnings thereon until such time as the reason for termination
has been resolved in accordance with the dispute resolution provisions
of the Employment Agreement.  In no event shall the Executive be deemed
to have forfeited his interest in the Trust or the Trust Fund if his employment
terminates as a result of a repudiation, rejection or similar breach of
the Employment Agreement by the Company.

(d)    In the event that the Trustee has not been provided
written notice, as provided in Section 2(c) above, that there has occurred
a forfeiture, or that there is a dispute with respect to a notice, the
Trust Fund will be paid in full to Executive in a single lump-sum cash
amount as of the first business day of January next following the earlier
of September 2, 2005 or the Executive's termination of employment.

(e)    If the Executive is deceased, then any amounts
payable to the Executive pursuant to the Trust shall instead be paid to
the Executive's beneficiary as provided for under the Employment Agreement.

(f)    In the event the Executive must include in his
gross income any or all of the value of his interest in the Trust (whether
or not prior to the distribution of amounts from the Trust), then the Trustee,
upon direction from the Company, shall withhold any federal, state and
local taxes of whatever type that may be required to be withheld with respect
to such inclusion of income, and shall distribute such amounts to the Company
for its proper submission and reporting by the Company.  Any amounts
so included in the gross income of the Executive shall be treated as additional
compensation from the Company on the earlier of September 2, 2005 or the
Executive's termination equal to the value of the Trust principal as of
such date. The computation of the amount to be withheld and submitted to
the proper tax authorities shall be determined by the Company.

(g)    All current earnings (within the meaning of Code
section 651) arising from investment of the Trust Fund shall be distributed
to the Executive prior to the last business day of January next following
the date earned by the Trust.  Such income shall be reported and taxed
to the Executive under Code Section 652 as a trust distribution and not
as additional compensation from the Company. The Trustee, or such other
tax advisor as may be selected by the Executive, shall prepare the annual
tax returns for the Trust and deliver such returns to the Trustee for review
and submission to the proper tax authorities.

SECTION 3.  Payments to Company

The Company shall have no beneficial interest in the principal or earnings
hereunder, except as provided in Section 9(b).
SECTION 4.  Investment Authority
(a)    The Trustee shall have the authority
to manage and control the Trust assets, upon written direction from the
Executive and shall follow directions with respect to the investment of
the Trust Fund from the Executive or any investment advisor(s), which may
include affiliates of the Trustee.  In the absence of such direction,
the Trustee shall invest the corpus of the Trust Fund in short term securities
of the United States Government.  Pursuant to such authority and subject
to the terms of the Agreement, with respect to any and all property at
any time held by it hereunder, and whether constituting principal or income
therefrom, the Trustee shall have the following powers, in addition to
those conferred by law:
(1)    To retain any such property as investment
without regard to the proportion which such property or property of a similar
character, so held, may bear to the entire amount of the Trust in which
such property is held whether or not such property is of the class in which
the Trustee is authorized by law or any rule of court to invest trust funds.
(2)    To sell such property at either public or private
sale for cash or on credit; to exchange such property; and to grant options
for the purchase thereof.

(3)    To invest and reinvest in property of any character,
real or personal, foreign or domestic, including, but without limiting
the generality of the foregoing, bonds, notes, securities, mortgages, common
and preferred stocks, partnerships, shares or interests in investment trusts
and participation in any common trust fund maintained by the Trustee, and
open-end and closed-end investment companies and mutual funds, including
(to the extent permitted by applicable law) companies or funds to which
the Trustee acts as investment advisor and/or performs other services,
regardless of the purposes for which any such company or fund was created,
and any partnership, limited or unlimited, joint venture and other forms
of joint enterprise created for any lawful purpose.

(4)    With respect to any investment of the Trust, to
consent to and participate in any plan of reorganization, consolidation,
merger, combination, or other similar plan, and to consent to any contract,
lease, mortgage, purchase, sale or other action by any corporation pursuant
to such plan.

(5)    With respect to any investment of the Trust, to
deposit any such property with any protective reorganization or similar
committee, to delegate discretionary power thereto, to pay part of its
expenses and compensation and any assessments levied with respect to such
property.

(6)    To exercise all conversion, subscription, voting
and other rights of whatsoever nature pertaining to any such property and
to grant proxies, discretionary or otherwise, in respect thereof.

(7)    To make loans of securities held in the Trust
to registered brokers and dealers upon such terms and conditions as are
permitted by applicable law and regulations, and in each instance to permit
the securities so let to be registered in the name of the borrower or a
nominee of the borrower, provided that in each instance the loan is adequately
secured and neither the borrower nor any affiliate of the borrower has
discretionary authority or control with respect to the assets of the Trust
involved in the transaction or renders investment advice with respect to
those assets.

(8)    To borrow money in such amounts and upon such
terms, from itself individually or from others, for such purpose
or purposes as it, in its discretion, may determine and in connection therewith
to execute promissory notes, mortgages or other obligations and to pledge
or mortgage any such property as security.

(9)    To employ agents, experts and counsel, including
legal and investment counsel, and to delegate discretionary powers to,
and rely upon information and advice furnished by, such agents, experts
and counsel and to pay reasonable fees to such agents, experts and counsel.

(10)   To extend the time of payment of any obligation held
by it and to compromise, settle or submit to arbitration upon such terms
as to it may seem proper, or to release, any claim in favor of the Trust
created hereunder.

(11)   From time to time to register any property in the name
of its nominee or in its own name or to hold it unregistered or in such
form that title shall pass by delivery and to place property in a custody
or safekeeping account.

(12)   To receive additional property from any source and
add it to, and mingle it with, the Trust hereunder.

(13)   To make any division or distribution in cash or in
other property or undivided interests therein, or partly in cash and partly
in other property or undivided interests therein.

(14)    To make executory contracts and to grant options
for any purpose and upon any terms, and to make such contracts and options
binding on the Trust and enforceable against any property included in the
Trust estate.

(15)    To do all such acts, take all such proceedings
and exercise all such rights and privileges, although not hereinbefore
specifically mentioned, with relation to any such property, as if the absolute
owner thereof, and in connection therewith to make, execute and deliver
any instruments and to enter into any covenants or agreements binding the
Trust hereunder.

(16)    Notwithstanding any powers granted to the Trustee
pursuant to this Trust Agreement or by applicable law, the Trustee shall
not have any power that could give this Trust the objective of carrying
on a business and dividing the gains therefrom, within the meaning of Section
301.7701-2 of the Procedure and Administration Regulations promulgated
under the Code.

(b)      In no event may Trustee invest in securities
(including stock or rights to acquire stocks) or obligations issued by
the Company, or any affiliate of the Company, other than a de minimus amount
held in common investment vehicles in which the Trustee invests.

SECTION 5.  Responsibility of Trustee
(a)    The Trustee shall prudently discharge
its duties hereunder solely for the purposes set forth herein.
(b)    Persons dealing with the Trustee shall not be
obligated to look to the application of any moneys or other property paid
or delivered to the Trustee or to inquire into the authority of the Trustee
as to any transaction.  All powers granted to the Trustee shall continue
until actual distribution of the property.

(c)    The Trustee shall incur no liability whatsoever
by reason of any action taken or not taken pursuant to the provisions of
this Agreement except for negligence, gross negligence or willful misconduct.

(d)    The Trustee may consult with legal counsel (who,
with the consent of Executive, may also be counsel for the Company generally)
with respect to any of its duties or obligations hereunder.  The Trustee
may have agents, accountants, actuaries, investment advisors, financial
consultants or other professionals to assist it in performing any of its
duties or obligations hereunder.

SECTION 6.  Resignation and Removal of Trustee
(a)    If the Trustee shall resign or cease
to act for any reason, the Company shall have the power to appoint a successor
trustee.  Under no circumstances shall the Company act as trustee
hereunder.
(b)    The Trustee may resign at any time upon sixty
(60) days' prior written notice to the Company.  In the event a trustee,
or a successor trustee resigns, it shall be relieved of all further liability
hereunder other than to account for all property received while acting
as trustee and, if applicable, to turn over such property to a successor
trustee.

(c)    The Company, with the approval of the Executive,
may remove the Trustee at any time upon sixty (60) days' prior written
notice to the Trustee, and shall appoint a successor trustee.  In
the event a trustee is removed it shall be relieved of all further liability
hereunder other than to account for all property received while acting
as trustee and, if applicable, to turn over such property to a successor
trustee.

(d)    The appointment of a successor trustee by the
Company shall be subject to the written consent of the Executive.

(e)    No successor trustee shall be liable or responsible
in any way for the acts or defaults of any predecessor trustee, nor for
any loss or expense caused by anything done or neglected to be done by
any predecessor trustee, but such successor trustee shall be liable only
for its own acts and defaults with respect to the Trust funds actually
received by it as trustee.  Every successor trustee shall be vested
with all the duties, rights, titles, and powers, whether discretionary
or otherwise, of the original trustee.  No Trustee or successor
trustee shall be required to give any bond or other security for the faithful
performance of its duties as such.

SECTION 7.  Accounting by Trustee
           Trustee
shall keep accurate and detailed records of all investments, receipts,
disbursements and all other transactions required to be made, including,
without limitation, such specific records as shall be agreed upon in writing
between the Executive and the Trustee.  Within ninety (90) days after
the close of each calendar year and within ninety (90) days after the removal
or resignation of the Trustee, the Trustee shall deliver to the Executive
(with a copy to the Company) a written account of the administration of
the Trust during such year or during the period from the close of such
preceding year to the date of such removal or resignation setting forth
all investments, receipts, disbursements and other transactions effected
by it, including a description of all securities and investments purchased
and sold with the cost or net proceeds of such purchase or sales, and showing
all cash, securities, and other property held in the Trust at the end of
such year or as of the date of such removal or resignation, as the case
may be.

SECTION 8.  Compensation and Expenses of Trustee.

(a)    The Trustee's fees for the first twelve
months have been paid by the Company.  Thereafter, to the extent the
Trustee's fees are not paid by the Company or the Executive, the fees shall
be paid from the Trust.
(b)    All of the on-going administrative expenses shall
be paid from the Trust.

SECTION 9.  Amendment and Termination
(a)    The Agreement and the Trust hereunder
may be amended any time and to anyextent by written instrument executed
by the Trustee, the Executive and the Company.
(b)    The Trust shall not terminate until the date on
which the corpus of the Trust has been distributed to the Executive, or
forfeited in accordance with Section 2(c), in which case any assets remaining
in the Trust shall be paid to the Company.

SECTION 10.  Miscellaneous
(a)    Any direction of the Trustee by the Company
pursuant to any of the provisions of the Agreement shall be evidenced by
a written notice or written direction to such effect over the signature
of any officer or other representative of the Company who shall have been
certified in writing to the Trustee by the Secretary of the Company, as
having such authority and the Trustee shall be fully protected in acting
in accordance with such written notices or written directions.  Until
written notice is given to the contrary, communications to the Trustee
shall be sent to it as its office at The Northern Trust Company, Attn:
Scott Borton/RM for UAL, 50 South LaSalle Street, Chicago, IL 60675.
(b)    The Agreement shall inure to the benefit of and
be binding upon the Company, the Executive and the Trustee and their successors
and assigns.

(c)    The Executive's interest and his beneficiary's
interest in income or principal hereunder shall not be subject to anticipation,
assignment, pledge, sale or transfer in any manner, nor shall the Executive
nor the Executive's beneficiary have the power to anticipate, encumber
or change such interest, nor shall such interest, while in the possession
of the Trustee, be liable for or subject to the debts, contracts, obligations,
liabilities or torts of the Executive or the Executive's spouse.

(d)    Wherever necessary or appropriate, the use herein
of any gender shall be deemed to include the other gender and the use herein
of either the singular or the plural shall be deemed to include the other.

(e)    Any provision of the Agreement prohibited by law
shall be ineffective to the extent of any such prohibition, without affecting
the remaining portions hereof.

(f)    This trust is not intended to be an employee benefit
plan within the intendment of Section 3(2) of the Employee Retirement Income
Security Act of 1974, as amended.

(g)    The Agreement shall become effective, as of the
day and year first above written, upon the execution of the Agreement by
the Company, Trustee and Executive.  It shall be governed and construed
in all respect according to the law of the State of Illinois.  Notwithstanding
the application of Illinois law, the actual administration of the Trust
may be conducted in such location, and the location of the Trust Fund assets
may be changed, as the Trustee, in its sole discretion, may determine from
time to time.

IN WITNESS WHEREOF, the parties have executed this Trust Agreement
as of the date first above written.

 
	Attest:	UAL CORPORATION
	/s/ Mary Jo Georgen_____________	
	Name:  Mary Jo Georgen	By: /s/ Francesca M. Maher___________
	Title:     Assistant Corporate Secretary	Name:  Francesca M. Maher
		Title:     Senior Vice President, 
		           
General Counsel and Secretary
	Attest:	
	/s/ Helen M. Stirk_______________	THE NORTHERN TRUST COMPANY, as Trustee
	Name:  Helen M. Stirk	
	Title:     Senior Vice President and 	By: /s/ Scott G. Borton_______________
	           
Assistant Corporate Secretary	Name:  Scott G. Borton
		Title:     Vice President
		
		/s/ Glenn F. Tilton___________________
		GLENN F. TILTONUnited Contract Number:

Exhibit 10.4

 

 

AGREEMENT

          THIS AGREEMENT
(the "Agreement") is made and entered into as of September 2, 2002 (the
"Effective Date") between United Air Lines, Inc. ("UA") and UAL Corporation
("UAL", UA and UAL sometimes collectively referred to as "United") and
Rono J. Dutta residing at 1044 Mohawk Road, Wilmette, Illinois 60091 (sometimes
referred to as "Executive").

          WHEREAS, Executive
has served and is presently serving as an officer of UA (such position
is hereinafter referred to as the "Executive Position"), and may hold various
other positions and directorships with UA, UAL, or subsidiaries or affiliates
thereof;

          WHEREAS, Executive
wishes to terminate his employment with United;

          WHEREAS, United
wishes to retain certain limited services of Executive, and Executive wishes
to provide said services to United, in accordance with the terms and conditions
set forth herein; and

          WHEREAS, Executive
has agreed in this Agreement to provide such services and to release United
from certain liabilities, as set forth in this Agreement, arising out of
Executive's ceasing to serve in the Executive Position;

          NOW, THEREFORE,
it is agreed by and between United and Executive as follows:

          1.   
Relinquishment of Title; Continued Employment.  Executive hereby
ceases to serve in the Executive Position, effective as of the Effective
Date.  Thereafter, Executive will continue to be actively employed
by United, but Executive will perform services for United by being "on
call", including testifying on behalf of United and consulting with executives
of United, and subject to such other assignments consistent with Executive's
experience and reasonably acceptable to Executive as may be reasonably
requested by either the person who is Executive's supervisor immediately
prior to the Effective Date (the "Supervisor") or the Supervisor's successor,
provided,
however,
that such "on call" services will be scheduled so as not to interfere unreasonably
with Executive's business or personal affairs; and will not exceed five
days in any calendar month or fifteen days in any calendar year. 
Except as otherwise provided in Paragraphs 2, 4 and 6, nothing in this
Agreement shall restrict or limit Executive's right to be employed by others
or to be self-employed during the Term (as defined in Paragraph 2 below)
or deprive Executive of his right to benefits (as specified in Paragraph
3(C) below) during the Term.

          2.   
Time Period of Employment; Retirement.  A.   United
agrees to employ Executive and Executive agrees to be employed by United
on the basis stated in Paragraph 1 from the Effective Date through the
earlier of (i) 11:59 p.m. of August 31, 2006, or (ii) the termination of
this Agreement and Executive's employment pursuant to Paragraph 4 hereof
(such period, the "Term").

          B.     
At the end of the Term, Executive shall be deemed to have retired as an
active officer of UA for purposes of United's employee benefit plans, including,
but not limited to, retiree medical plans and retiree travel policies (collectively,
the "United Benefit Plans") in accordance with the terms of each United
Benefit Plan.  Notwithstanding the foregoing, if the Term ends pursuant
to Paragraph 2(A)(ii) above, by virtue of the operation of Paragraph 4
below, Executive shall not be deemed to have retired at the end of the
Term for purposes of the United Benefit Plans but, in the case of paragraph
4(i), Executive's beneficiaries will have the benefits accorded to the
beneficiaries of an active officer who dies.  The Term will not end
in the event Executive becomes disabled such that he would qualify for
long term disability benefits under the terms of any long-term disability
plan or program of United whether or not he is covered by such plan or
program.  Notwithstanding any other provision hereof, Executive's
qualification for retirement with respect to the Equity Plans and the Other
Grants (each as defined in Paragraph 3(C)(vi) hereof) shall be determined
pursuant to the provisions of Paragraph 3(C)(vi) hereof.

          3.  
Compensation and Benefits.  A. Salary.  United
will pay Executive the following salary payments:

                 
(i)     Executive's monthly salary as in effective
on the Effective Date for the month of September 2002.

                 
(ii)     From October 1, 2002 through the end of the
Term, United will pay Executive a monthly salary in the amount of $2,000.00.
Such payments  will be made on the same schedule as salary payments
are made to actively employed officers of United from time to time, currently
the 15th and last day of each month.  During the Term, Executive will
not be entitled to any increase nor subject to any decrease in such salary
payments.  Any amounts will be prorated for any partial month.

                  
(iii)     United shall also pay Executive a lump sum
payment of $1,600,000.00 upon the expiration of the revocation period set
out in paragraph 9(B)(iv).

All payments made pursuant to this Paragraph 3 will be subject
to withholding for taxes and other purposes as required by applicable law. 
The lump sum payment made pursuant to (iii) of this Paragraph 3 shall not
be considered to be Earnings for purposes of any employee benefit plan
sponsored by United.

          B.   
Incentive Compensation.  If a Performance Incentive Plan (or
any successor Plan) award is granted for 2002 performance or thereafter,
Executive will not be eligible for any award.
          C.   
Benefits.  Notwithstanding what may be provided to other active
employees of United from time to time or whether Executive may have been
covered by a benefit plan prior to the Effective Date, the only benefits
that Executive shall be entitled to during the Term are as follows:

(i) Free and Reduced Rate Transportation.  United shall
provide to Executive and his eligibles free and reduced rate transportation
of the type granted to actively employed officers in accordance with company
regulations as revised from time to time (the "Transportation Benefits").
 

(ii) United Air Lines, Inc. Management and Salaried Employees' Retirement
Plan.  Executive shall continue to participate in (A) the Retirement
Plan and (B) the United Air Lines, Inc. Supplemental Retirement Plan (hereinafter
collectively the "Retirement Plans") in accordance with their terms, pursuant
to which Executive will be credited with Years (and Months) of Participation
(and Service) (as such terms are defined in the Retirement Plan) for the
period of the Term.
 

(iii) Management Medical/Dental.  Executive and his eligible
dependents shall continue to be covered by the Management Medical/Dental
Plan in the same manner as other active management employees.  In
the event active management employees are required to pay a portion of
the premium or cost for coverage under the Medical/Dental Plan, Executive
shall be entitled to such coverage provided he makes all required payments
in a timely manner as determined by the Plan Administrator of the Management
Medical/Dental Plan.
 

(iv) Group Life Insurance.  Executive shall continue to be
covered by Group Life Insurance including Contributory Life Insurance (if
so covered), on the same basis as other active management employees, provided
the appropriate payroll deductions are authorized and in accordance with
the terms of the policies.
 

(v) Officer's Accidental Death and Dismemberment Insurance/Split Dollar
Life Insurance. Executive's Officer's Accidental Death and Dismemberment
coverage will continue until the end of the Term. If Executive is covered
by the Officer's Split Dollar Life Insurance as of the Effective Date,
Executive will continue to be covered by such insurance until the end of
the Term or, if sooner, until UA cancels such coverage for active officers. 
The terms of Executive's coverage and option for continuation of the Officer's
Split Dollar Life Insurance after the end of the Term or upon cancellation
will be explained in a separate letter upon the end of the Term or upon
cancellation.
 

(vi) (a)  Stock.  Executive shall forfeit all vested and
unvested stock options granted under UAL's equity incentive plans (the
"Equity Plans") prior to the Effective Date.  Executive shall retain
any restricted stock granted to him pursuant to the Equity Plans.
 

      (b)  Executive will not be eligible
for any grants made under the Equity Plans after the Effective Date.
 

(vii)      Other Benefits.  Executive
will continue to be eligible to participate in the stock purchase plan,
401(k) plan, Flexible Spending Account and Employee Stock Ownership Plan,
and be eligible for payroll savings bonds on the same basis as other active
employees.  Executive will also be eligible to utilize the Credit
Union subject to its rules.
(viii)     Vacation and Holidays.  Executive
shall be paid for eight (8) weeks of accrued vacation upon the expiration
of the revocation period set out in paragraph 9(B)(iv). No vacation or
holiday time will be accrued or taken after the Effective Date.

(ix)      Outplacement Benefits. 
For a period of 12 months following the end of the Term, Executive will
be provided with outplacement assistance appropriate to the Executive Position
held by the Executive prior to the Effective Date.

(x)      Automobile.  UA will transfer
title to the automobile provided to Executive by UA immediately prior to
the Effective Date.

(xi)     Directors and Officers Liability Insurance. 
During the Term United shall cause Executive to be covered by directors
and officers liability insurance to the same extent as active directors
and officers of United are covered by such insurance.

(xii)     Executive Assistant.  For
a period commencing on the Effective Date through December 31, 2002, United
will continue to employ Rudi Meskele as Executive's assistant as she is
presently employed, provide her with suitable working space and equipment,
and authorize her to provide services to Executive as Executive's assistant
through December 31, 2002.

                   
D.     Each of the benefits enumerated in Paragraph
3(C) is subject to the practices, rules, and regulations of United, as
in effect from time to time.

E.     (i) Notwithstanding any other provisions
of this Agreement, in the event that any payment or benefit received or
to be received by Executive hereunder, when taken together with any payment
or benefits received or to be received pursuant to the terms of any other
plan, arrangement or agreement with United, or any affiliate thereof (all
such payments and benefits being hereinafter called "Total Payments") would
be subject (in whole or part), to any excise tax (the "Excise Tax") imposed
under section 4999 of the Internal Revenue Code of 1986, as amended (the
"Code"), then, the payments under Paragraph 3(A) shall first be reduced
and individual benefits under Paragraph 3(C) shall thereafter be eliminated,
to the extent necessary so that no portion of the Total Payments is subject
to the Excise Tax, but only if (A) the net amount of such Total Payments,
as so reduced (and after subtracting the net amount of federal, state and
local income taxes on such reduced Total Payments) is greater than or equal
to (B) the net amount of such Total Payments without such reduction (but
after subtracting the net amount of federal, state and local income taxes
on such Total Payments and the amount of Excise Tax to which Executive
would be subject in respect of such unreduced Total Payments); provided,
however,
that Executive may elect to have individual benefits under Paragraph 3(C)
eliminated prior to any reduction of the cash payments under Paragraphs
3(A).
(ii)     For purposes of determining whether and
the extent to which the Total Payments will be subject to the Excise Tax,
(i) no portion of the Total Payments the receipt or enjoyment of which
Executive shall have waived at such time and in such manner as not to constitute
a "payment" within the meaning of section 280G(b) of the Code shall be
taken into account, (ii) no portion of the Total Payments shall be taken
into account which, in the opinion of tax counsel ("Tax Counsel") reasonably
acceptable to Executive and selected by the accounting firm (the "Auditor")
which was, immediately prior to the Effective Date, United's independent
auditor, does not constitute a "parachute payment" within the meaning of
section 280G(b)(2) of the Code (including by reason of section 280G(b)(4)(A)
of the Code) and, in calculating the Excise Tax, no portion of such Total
Payments shall be taken into account which, in the opinion of Tax Counsel,
constitutes reasonable compensation for services actually rendered, within
the meaning of section 280G(b)(4)(B) of the Code, in excess of the Base
Amount (as defined in section 280G(b)(3) of the Code) allocable to such
reasonable compensation, and (iii) the value of any non-cash benefit or
any deferred payment or benefit included in the Total Payments shall be
determined by the Auditor in accordance with the principles of sections
280G(d)(3) and (4) of the Code.

F.     Air Transportation Safety and System Stabilization
Act.

 

(i)     Notwithstanding any other provisions of
this Agreement, in the event that any payment or benefit received or to
be received by the Executive hereunder, when taken together with any payment
or benefits received or to be received pursuant to the terms of any other
plan, arrangement, or agreement with United, or any affiliate thereof which
is, in the opinion of counsel selected by United ("Counsel"), included
in "Total Compensation" as defined by Section 104(b) of the Air Transportation
Safety and System Stabilization Act (the "Act") would, in the opinion of
Counsel, exceed the limitation under Section 104(a) of the Act, then the
payments under  Paragraph 3(A) included in Total Compensation shall
first be reduced and individual benefits under Paragraph 3(C) included
in Total Compensation shall thereafter be eliminated, provided,
however,
that Executive may elect to have individual benefits under Paragraph 3(C)
eliminated prior to any reduction of the cash payments under Paragraph
3(A).

(ii) Paragraph 3(F)(i) will not apply if (a) United does not apply
for Federal credit instrument under the Act by the deadline stipulated
in the Act or any amendment thereto or (b) if United does apply
for a Federal credit instrument under the Act by the deadline
but such Federal credit instrument is not actually issued to United for
any reason other than because the Executive's Total Compensation exceeds
the limitation under Section 104(a) of the Act.

          4.   
Termination of Employment Under Agreement.  Executive's employment
under this Agreement shall terminate and Executive will no longer have
the status of an active employee of United and will no longer be entitled
to any of the benefits of this Agreement (including the entitlement to
the benefits described in Paragraph 3(C), other than those required by
law or otherwise vested), on the happening of the earliest of the following
events:
(i) Executive's death;
(ii) Any material breach by Executive of Paragraph 6 or 9 hereof or
the failure by Executive to provide notice to United pursuant to Paragraph
6(C) hereof;

(iii) Executive's termination for Cause (as defined below).

For purposes hereof, "Cause" shall mean (a) the willful and continued failure
by Executive to substantially perform Executive's duties with United (other
than any such failure resulting from Executive's incapacity due to physical
or mental illness) after a written demand for substantial performance is
delivered to Executive by the Board of Directors of UAL (the "Board"),
which demand specifically identifies the manner in which the Board believes
that Executive has not substantially performed Executive's duties, 
(b) the willful engaging by Executive in conduct, including any conduct
that is a violation of Executive's duties set forth under Paragraph 7 or
8 hereof, which is demonstrably and materially injurious to United or its
subsidiaries, monetarily or otherwise, or (c) Executive's conviction for
the commission of a felony.  For purposes of clauses (a) and (b) of
this definition, no act, or failure to act, on Executive's part shall be
deemed "willful" unless done, or omitted to be done, by Executive not in
good faith and without reasonable belief that Executive's act, or failure
to act, was in the best interest of United.

          5.   
Regulations.  During his employment, Executive will be governed
by applicable United regulations, as in effect from time to time, to the
extent that such regulations are consistent with Executive's status as
an on-call employee.

6.      Confidentiality.
         A. For purposes of
this Agreement "Confidential Information" shall mean and include, but not
be limited to, the kinds of services provided or proposed to be provided
by United to customers, the manner in which such services are performed
or offered to be performed, information concerning United's fleet plan,
cost structure, strategic plan, labor strategy, information concerning
the creation, acquisition or disposition of products and services, personnel
information, and other trade secrets and confidential or proprietary information
concerning United's business, but shall not include information which (I)
is or becomes generally available to the public other than as a result
of a disclosure by Executive, (II) was available to Executive on a non-confidential
basis prior to its disclosure by UAL or UA, or (III) becomes available
to Executive on a non-confidential basis from a person other than UAL,
UA or their officers, directors, employees or agents who is not otherwise
bound by any confidentiality obligations with respect to the information
provided to Executive (the "Confidential Information").

          B.     
(i)  Executive acknowledges that: (a) United's business is intensely
competitive and that Executive's employment by United has required and
during the Term may continue to require that Executive have access to and
knowledge of Confidential Information of United, (b) the direct or indirect
disclosure of any Confidential Information would place United at a disadvantage
and would do damage, monetary or otherwise, to United's business, and (c)
the engaging by Executive in any of the activities prohibited by this Paragraph
6 may constitute improper appropriation or use of such Confidential Information. 
Executive expressly acknowledges the trade secret status of the Confidential
Information and that the Confidential Information constitutes a protectible
business interest of United.

                   
(ii)  Whether directly or indirectly, individually, as a director,
stockholder, owner, partner, employee, principal, or agent of any business,
or in any other capacity, during the Term of this Agreement and for the
three (3) year period thereafter, Executive shall not make known, disclose,
furnish, make available or utilize any of the Confidential Information,
other than in the proper performance of the duties contemplated under this
Agreement.  Executive shall return any tangible Confidential Information,
including photocopies, extracts and summaries thereof, or any such information
stored electronically on tapes, computer disks, or in any other manner
that Executive has in his possession (a) on the Effective Date of this
Agreement, (b) at the end of the Term, and (c) at such time as United requests
Executive to do so.

                    
(iii)  Executive acknowledges and agrees that due to the confidential
and proprietary nature of the Confidential Information he or she possesses,
a breach or threatened breach by him or her of any of the provisions contained
in this Paragraph 6 will cause United irreparable injury.  Therefore,
in addition to any other rights or remedies, Executive agrees that United
shall be entitled to a temporary, preliminary, and permanent injunction
enjoining or restraining Executive from any such violation or threatened
violation, without the necessity of proving the inadequacy of monetary
damages or the posting of any bond or security.  Executive consents
to jurisdiction for such enforcement in any state or federal court in the
State of Illinois.

                    
(iv)  Executive further acknowledges and agrees that due to the uniqueness
of his services and confidential nature of the Confidential Information
he possesses, the covenants set forth herein are reasonable and necessary
for the protection of the business and goodwill of United.

                     
Executive understands that it is United's intent to have this promise of
confidentiality enforced to its fullest extent.  Accordingly, Executive
and United agree that, if any portion of this promise of confidentiality
is unenforceable, the court should still construe and enforce this promise
of confidentiality to the fullest extent permitted by law.

                      
C.     Executive agrees not to take a Competitive Position
(as defined below) for a Competitor (as defined below) for the period commencing
on the Effective Date and ending on September 2, 2003.  For purposes
of this Agreement, (1) "Competitor" means any airline or air carrier or
any company affiliated directly or indirectly with another airline or air
carrier provided each case such entity is a direct and material competitor
of the Company, and (2) "Competitive Position" means becoming employed
by, a member of the board of directors of, a consultant to, or to otherwise
provide services of any nature to a Competitor directly or indirectly. 
If on or before September 3, 2003, Executive desires to provide services
whether as a consultant, employee or otherwise to a Competitor or possible
Competitor Executive shall notify United in writing by registered mail
addressed to the General Counsel of United at its principal World Headquarters
offices.  Within ten days United shall either (x) determine that such
entity is not a Competitor, or (y) determine that such entity is a Competitor,
and if the entity is a Competitor, United will reasonably consider such
request and will not unreasonably withhold, delay, or condition its consent
to Executive's providing services to such entity; and in either case give
prompt written notice of such decision to Executive.

                        
D.      Executive agrees to keep the terms of
and circumstances surrounding this Agreement and of his working arrangement,
as defined herein, confidential except that the source and amount of his
income may be revealed as necessary for tax, loan purposes and the like
and except as set forth in the mutually agreed announcement by United and
Executive, and except that Executive may advise any prospective or future
employer of the provisions this Paragraph 6.

          7.   
Non-Disparagement.  A.  Executive agrees not to make,
or cause to be made, any statement, observation or opinion, or communicate
any information (whether oral or written, directly or indirectly) that
(a) accuses or implies that United and/or any of its parents, subsidiaries
and affiliates, together with their respective present or former officers,
directors, partners, shareholders, employees and agents, and each of their
predecessors, successors and assigns, engaged in any wrongful, unlawful
or improper conduct, whether relating to Executive's employment (or the
termination thereof), the business or operations of United, or otherwise;
or (b) disparages, impugns or in any way reflects adversely upon the business
or reputation of United and/or any of its parents, subsidiaries and affiliates,
together with their respective present or former officers, directors, partners,
shareholders, employees and agents, and each of their predecessors, successors
and assigns.
          
B. United agrees not to authorize any statement, observation or opinion
(whether oral or written, direct or indirect) that is materially injurious
to Executive and that (a) accuses or implies that Executive engaged in
any wrongful, unlawful or improper conduct relating to Executive's employment
with United or (b) disparages, impugns or in any way reflects adversely
upon the reputation of Executive.

          
C. Nothing herein shall be deemed to preclude Executive or United from
providing truthful testimony or information pursuant to subpoena, court
order or similar legal process.

          8.   
Non-Solicitation of Employees:  Executive agrees that Executive
will not, for a period of two years following the Effective Date, directly
or indirectly, for the benefit of any Competitor (as defined in Paragraph
6(C) hereof) of United, solicit the employment or services of, hire, or
assist in the hiring of any person eligible for the Performance Incentive
Plan or any successor Plan.
          9.   
Assent and Release.  A.  In consideration for the payments
and benefits provided in this Agreement, Executive hereby voluntarily,
knowingly, willingly, irrevocably, and unconditionally releases UA and
UAL together with their respective parents, subsidiaries and affiliates,
and each of their respective officers, directors, employees, representatives,
attorneys and agents, and each of their respective predecessors, successors
and assigns (collectively, the "Releasees") from any and all charges, complaints,
claims, liabilities, obligations, promises, agreements, causes of action,
rights, costs, losses, debts, and expenses of any nature whatsoever, known
or unknown, which against them Executive or his successors or assigns ever
had, now have or hereafter can, shall or may have (either directly, indirectly,
derivatively or in any other representative capacity) by reason of any
matter, fact or cause whatsoever arising from the beginning of time to
the date of this Agreement, including without limitation all claims arising
under Title VII of the Civil Rights Act of 1991, the federal Age Discrimination
in Employment Act of 1967 ("ADEA"), the Americans with Disabilities Act
of 1990, the Employee Retirement Income Security Act of 1974, the Family
and Medical Leave Act of 1993, the Equal Pay Act of 1963, each as amended;
and all other federal, state or local laws, rules, regulations, judicial
decisions or public policies now or hereafter recognized, including but
not limited to the California Fair Employment and Housing Act, the Colorado
anti-discrimination laws, the Illinois Human Rights Act, the New Jersey
Law Against Discrimination and the New York City and State Human Rights
Law, each as amended.  This release by Executive of the Releasees
also includes, without limitation, all claims arising under each employee
pension, employee welfare, and executive compensation plan of United now
in effect or hereafter adopted, except for any benefits to be provided
to Executive under this Agreement or in the normal course of Executive's
employment through the Effective Date.  It is agreed that this paragraph
shall survive termination of the Agreement.  Nothing in this Paragraph
9 shall affect or impair any right that Executive has (1) to indemnification
pursuant to United's bylaws or any other agreement with United or applicable
law, (2) to any vested benefit under United's employee benefit plans, or
(3) under this Agreement.

             
B.      Executive expressly acknowledges and agrees
that, by entering into this Agreement, Executive is waiving any and all
rights or claims that he may have arising under the ADEA, as amended, which
have arisen on or before the date of execution of this Agreement. 
Executive further expressly acknowledges and agrees that:

    (i) In return for this Agreement, Executive will
receive compensation beyond that which he was already entitled to receive
before entering into this Agreement;
 

     (ii) Executive has been advised by United to consult
with an attorney before signing this Agreement;
 

     (iii) Executive was given a copy of this Agreement
on September 5, 2002.  Executive has been informed that Executive
has not less than twenty-one (21) days from September 5, 2002 within which
to consider the Agreement and, if Executive considers this Agreement for
fewer than twenty-one (21) days, then Executive agrees that he has had
a reasonable period of time to consider the Agreement; and
 

     (iv) Executive was informed that Executive had
seven (7) days following the date of execution of the Agreement in which
to revoke the Agreement.  After seven (7) days this Agreement will
become effective, enforceable and irrevocable unless written revocation
is received by the undersigned from Executive on or before the close of
business on the seventh (7th) day after Executive executed this Agreement. 
If Executive revokes this Agreement it shall not be effective or enforceable
and Executive will not receive the compensation or benefits described in
this Agreement.

 
          C.  
Waiver
of Unknown Claims:  It is the intention of Executive and United
in executing this Agreement that the same shall be effective as a bar to
each and every claim, demand and cause of action hereinabove specified. 
In furtherance of this intention, Executive hereby expressly waives any
and all rights and benefits conferred upon Executive by the provisions
of SECTION 1542 OF THE CALIFORNIA CIVIL CODE, to the extent applicable
to Executive, and expressly consents that this Agreement shall be given
full force and effect according to each and all of its express terms and
provisions, including as well those related to unknown and unsuspected
claims, demands and causes of action, if any, as well as those relating
to any other claims, demands and causes of action hereinabove specified. 
SECTION 1542 provides:

 
"A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES
NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT TIME OF EXECUTING THE RELEASE,
WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT
WITH THE DEBTOR."

Executive acknowledges that Executive may hereafter discover claims or
facts in addition to or different from those which Executive now knows
or believes to exist with respect to the subject matter of this Agreement
and which, if known or suspected at the time of executing this Agreement,
may have materially affected this settlement.
         10.   
Non-Assignability; Assignment in the Event of Acquisition or Merger. 
This Agreement and the benefits hereunder are not assignable or transferable
by Executive; the rights and obligations of United under this Agreement
will automatically be deemed to be assigned by United to any corporation
or entity into which United may be merged or consolidate.

         11.   
Applicable Law.  This Agreement shall be construed in accordance
with the laws of the State of Illinois, and the rights and obligations
of the parties hereunder shall be construed and enforced in accordance
with, and governed by the laws of, the State of Illinois, without regard
to principles of conflict of laws.

          12.   
Paragraph Reference.  Any reference to paragraphs or subparagraphs
shall be references to paragraphs or subparagraphs of this Agreement unless
expressly stated otherwise.

          13.   
Severability.  If any provision of this Agreement or the application
thereof is held invalid, the invalidity shall not affect the other provisions
or applications of this Agreement which can be given effect without the
invalid provisions or application in accordance with the essential intent
and purpose of this Agreement, and to this end the provisions of this Agreement
are declared to be severable.  Moreover, if any one or more of the
provisions contained in this Agreement is held to be excessively broad
as to duration, scope, activity or subject, such provisions will be construed
by limiting and reducing them so as to be enforceable to the maximum extent
compatible with applicable law and with the essential intent and purpose
of this Agreement.

          14.   
Supersedes Prior Agreement(s).  This Agreement supersedes and
voids any prior oral or written agreement relating in any way to Executive's
employment with UA or UAL which may have been entered into between the
parties hereto.  Any change to this Agreement after the Effective
Date must be in writing and must be executed by UA, UAL and Executive.

          15.   
No Mitigation.  United agrees that Executive is not required
to seek other employment or to attempt in any way to reduce any amounts
payable to Executive by United pursuant to this Agreement.  Furthermore,
the amount of any payment or benefit provided for in this Agreement shall
not be reduced by any compensation earned by Executive as the result of
employment by another employer, by retirement benefits, by offset against
any amount claimed to be owed by Executive to United, or otherwise.

          16.   
Legal Fees; Arbitration.  United shall pay Executive's reasonable
legal fees and expenses up to a maximum of $20,000.000 incurred in connection
with the review and preparation of this Agreement.  United shall pay
to Executive all reasonable legal fees and expenses incurred by Executive
in disputing in good faith any issue hereunder or under the or in seeking
in good faith to obtain or enforce any benefit or right provided hereunder.
Payments requested by Executive pursuant to this Paragraph 16 shall be
made, without exception, within five (5) business days after delivery of
Executive's written requests for payment accompanied with such evidence
of fees and expenses incurred as United reasonably may require.  Any
dispute or controversy arising under or in connection with this Agreement
shall be settled exclusively by arbitration in Chicago, Illinois, in accordance
with the National Rules for the Resolution of Employment Disputes of the
American Arbitration Association then in effect.  Executive consents
to arbitration in Chicago, Illinois, as set forth above, agrees that judgment
may be entered in the courts of the State of Illinois on any such arbitration
award, consents to the jurisdiction of the courts of Illinois, both state
and federal, for the enforcement of any such arbitration award and agrees
not to disturb such choice of forum.  Notwithstanding the above, Executive
further agrees that United may seek temporary, preliminary or permanent
injunctive relief to enforce the provisions contained in Paragraph 6, without
first proceeding to arbitration.

 

 

          United and Executive,
having read and understood this Agreement and, having consulted with others
as appropriate, hereby agree to be bound by its terms.

          IN WITNESS WHEREOF,
the parties have executed this Agreement effective as of September 2, 2002,
at the World Headquarters of United Air Lines, Inc., 1200 East Algonquin
Road, Elk Grove Twp., Illinois 60007.

 

 

 

UAL CORPORATION AND                                                      
EXECUTIVE

UNITED AIR LINES, INC.

 

By:        /s/ Glenn F. Tilton                                                              
/s/ Rono J. Dutta

Name:  Glenn F. Tilton                                                                   
Rono J. Dutta

Title:     Chairman and Chief

            
Executive Officer

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00044-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00044-of-00352.parquet"}]]