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Word 8.0 Generic Normal Template, rev. 4/1/97, The Legal MacPac

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<TYPE> EX-10.18

<TEXT>

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Exhibit 10.18

FIRST AMENDMENT

OF

UAL CORPORATION

SUPPLEMENTAL ESOP

(Effective as of July 12, 1994)

By virtue and in exercise of the amending power reserved to UAL Corporation
(the "Company") under section 5.1 of the UAL Corporation Supplemental ESOP
(Effective as of July 12, 1994) (the "Plan"), which amending power thereunder
is subject to the approval of the Air Line Pilots and Association, International
("ALPA"), the Company hereby amends the Plan, as follows, effective January
1, 1995:

Section 3.1(c)(v) is amended by changing "January 1, 1995" to "February
24, 1995."

IN WITNESS WHEREOF, the Company has caused this First Amendment to be
executed on February 22, 1995.

 

 

                                          
   
UAL CORPORATION

 

                                          
   

/s/ Stuart I. Oran

                                         
     
Stuart I. Oran

                                         
     
Executive Vice President

                                         
     
Corporate Affairs and

                                         
     
General Counsel

 

 

Approved by:

AIR LINE PILOTS ASSOCIATION,

INTERNATIONAL

/s/ J. Randolph Babbitt

President

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</DOCUMENT>Word 8.0 Generic Normal Template, rev. 4/1/97, The Legal MacPac

<DOCUMENT>

<TYPE> EX-10.19

<TEXT>

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Exhibit 10.19

SECOND AMENDMENT

OF

UAL CORPORATION

SUPPLEMENTAL ESOP

(Effective as of July 12, 1994)

By virtue and in exercise of the amending power reserved to UAL Corporation
(the "Company") under section 5.1 of the UAL Corporation Supplemental ESOP
(effective as of July 12, 1994) (the "Plan"), which amending power thereunder
is subject to the approval of the Air Line Pilots Association, International
("ALPA"), the Company hereby amends the Plan, as follows, effective January
1, 1995:

1. Section 1.1(c) is amended by adding the following to the end of the
section:

"For Convertible Shares to be allocated under this Plan for Plan Years
beginning on or after January 1, 1995, 96.286956% will be allocated to
the ALPA Employee Group, 1.699314% will be allocated to the IAM Employee
Group, and 2.01373% will be allocated to the Management and Salaried Employee
Group."

2. Section 1.1(d) is amended by adding the following to the end of the
section:
"Effective for Plan Years beginning on or after January 1, 1995, the
Class M Voting Shares will be contributed to the ESOP (Part B) or the Supplemental
Trust."

3. Effective upon adoption of this Second Amendment, Section 1.3(d) is
amended to read as follows:
"(d)  'Committee' means the ESOP Committee."

4. Section 1.3(j) is amended to read as follows:
"(j)  'Eligible Employee' means an 'eligible employee' as defined
in the ESOP."

5. Section 1.3(q) is amended to read as follows:
"(q)  'Participant' means an ESOP Participant who has an Account
under this Plan."

6. The second sentence of Section 2.1 is deleted.
7. Section 2.4(a)(iv) shall be amended to read as follows:

"(iv)  Allocations under the ESOP (Part A) were made (A) without
regard to the Tax Limitations, (B) without regard to clauses (ii), (iv),
(v), (vi) or (vii) of Section 5.4(a) of the ESOP, (C) were based on Compensation
rather than the definition of compensation in the ESOP, and (D) for Plan
Years beginning on or after January 1, 1995, by including the shares designated
for inclusion in the Hypothetical Share Number for the ESOP Participant
on account of the Special Annual Allocation applicable to the Plan Year
under Appendix A to the ESOP; and"

8. The first sentence of Section 2.4(c) is amended to read as follows:
"For each ESOP Participant, the difference, if any, between the Hypothetical
Share Number and the Actual Share Number shall be referred to as the Tentative
Allocation."

9. Section 4.2 is amended by deleting the existing language in subsections
(a), (b), and (c), and by replacing such language, in each of such subsections,
with the word "Reserved."
10. Section 4.2(i) is deleted.

11. Section 5.1 is amended to read as follows:
"5.1.  Amendment.  While the Company expects and intends
to continue the Plan, the Company must necessarily reserve, and does hereby
reserve, the right to amend the Plan at any time, except that no amendment
may be adopted, without the approval of ALPA and the IAM, provided, that,
with respect to amendments adopted which are described in Section 13.1(b)
or (d) of the ESOP (which subsections shall be treated as appropriately
modified to the extent necessary to reflect the circumstances of this Plan),
the need for mutual approval shall be modified."

12. The second sentence of Section 5.2 is deleted.
IN WITNESS WHEREOF, the Company has caused this Second Amendment to
be executed on August 17, 1995.

                                          
     
UAL CORPORATION

 

                                          
    

/s/ Stuart I. Oran

                                         
      
Executive Vice President-

                                         
      
Corporate Affairs and

                                         
      
General Counsel

 

 

 

 

Approved by:

 

AIR LINE PILOTS ASSOCIATION,

INTERNATIONAL

/s/ Harlow B. Osteboe

/s/ J. Randolph Babbitt

 

 

INTERNATIONAL ASSOCIATION OF

MACHINISTS AND AEROSPACE WORKERS

/s/ Kenneth W. Thiede

 

 

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<DOCUMENT>

<TYPE> EX-10.20

<TEXT>

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Exhibit 10.20

THIRD AMENDMENT

OF

UAL CORPORATION

SUPPLEMENTAL ESOP

(Effective as of July 12, 1994)

By virtue and in exercise of the amending power reserved to UAL Corporation
(the "Company") under section 5.1 of the UAL Corporation Supplemental ESOP
(effective as of July 12, 1994) (the "Plan"), which amending power thereunder
is subject to the approval of the Air Line Pilots Association, International
("ALPA") and the International Association of Machinists and Aerospace
Workers (the "IAM"), the Company hereby amends the Plan, as follows, effective
January 1, 1995:

1. The material added to the end of Section 1.1(c) by the Second Amendment
is deleted and the following inserted in its place:

"For Convertible Shares to be allocated under this Plan for Plan Years
beginning on or after January 1, 1995, 96.286956% will be allocated to
the ALPA Employee Group, 1.699314% will be allocated to the IAM Employee
Group, and 2.01373% will be allocated to the Management and Salaried Employee
Group."

2. The material added to the end of Section 1.1(d) by the Second Amendment
is deleted and the following inserted in its place:
"Effective for Plan Years beginning on or after January 1, 1995, the
Class M Voting Shares will be contributed to the ESOP (Part B) or the Supplemental
Trust."

3. Section 1.3(d) is amended to read as follows:
"'Committee' means the ESOP Committee."

4. Section 1.3(g) is amended by adding the following to the end of the
Section:
"For the Plan Year commencing January 1, 1995, and for subsequent
Plan Years, 'Compensation' for an Employee who is a member of the Management
and Salaried Employee Group shall include any compensation which would
have been paid to the Employee during the Plan Year, but was not paid during
that Plan Year because the Employee elected to defer its receipt according
to a procedure adopted by the Company.  Compensation included as a
result of the preceding sentence shall not be included as Compensation
in the Plan Year in which it is actually paid to the Employee."

5. Section 1.3(j) is amended to read as follows:
"(j)  'Eligible Employee' means an 'eligible employee' as defined
in the ESOP."

6. The second sentence of Section 2.1 is deleted.
7. The first sentence of Section 2.4(c) is amended to read as follows:

"For each ESOP Participant, the difference, if any, between the Hypothetical
Share Number and the Actual Share Number shall be referred to as the Tentative
Allocation."

8. Section 3.1(b) is amended by adding the following to the end of the
Section:
"The Committee may determine for any Participant or group of Participants
that, because of the possibility of transfers to the ESOP (Part B) under
Section 2.7, it is not practicable to make payments under Section 3.1(b)
until  the amount (if any) of such transfers can be determined."

9. Subsections 4.2 (a), (b), (c) and (i) are deleted and replaced in each
instance by "Reserved."
10. Section 5.1 is amended to read as follows:

"5.1       Amendment.  While the
Company expects and intends to continue the Plan, the Company must necessarily
reserve, and does hereby reserve, the right to amend the Plan at any time,
except that no amendment may be adopted, without the approval of ALPA and
the IAM, provided, that, with respect to amendments adopted which are described
in Section 13.1(b) or (d) of the ESOP (which subsections shall be treated
as appropriately modified to the extent necessary to reflect the circumstances
of this Plan) the need for joint approval shall be modified."

IN WITNESS WHEREOF, the Company has caused this Third Amendment to be executed
on December 28, 1995.

 

 
                                          
     
UAL CORPORATION

 

                                         
     

/s/ Douglas A. Hacker

 

 

Approved by:

 

 

AIR LINE PILOTS ASSOCIATION,

INTERNATIONAL

 

/s/ J. Randolph Babbitt                

/s/ Harlow B. Osteboe

 

 

INTERNATIONAL ASSOCIATION OF

MACHINISTS AND AEROSPACE WORKERS

 

 

/s/ Kenneth W. Thiede

 

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</DOCUMENT>UAL CORPORATION

<DOCUMENT>

<TYPE> EX-10.28

<TEXT>

<HTML>
Exhibit 10.28

 

 

 

 

 

 

UAL CORPORATION

SUPPLEMENTAL ESOP

TRUST AGREEMENT

 

 

 

 

Effective July 12, 1994

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TRUST AGREEMENT
INDEX

 

 

 
	Section	 	
Page

	 	 	 
	RECITALS:	 	
1

	  Section 1.	Trust Fund	
1

	  Section 2.	Payments to Trust Beneficiaries	
3

	  Section 3.	Trustee Responsibility Regarding Payments to
a Trust Beneficiary When the Company is Insolvent	
4

	  Section 4	Term and Payments to the Company	
5

	  Section 5	Powers of the Trustee	
5

	  Section 6.	Accounting by the Trustee	
9

	  Section 7	Responsibilities and Powers of Trustee	
10

	  Section 8	Compensation and Expenses of the Trustee; Taxes	
11

	  Section 9.	Replacement of the Trustee	
12

	  Section 10.	Amendment	
12

	  Section 11.	Severability and Alienation	
13

	  Section 12	Governing Law	
13

	  Section 13	Notices	
13

	  Section 14	Signature in Counterparts	
14

	  Section 15	Defined Terms	
14

 

 

i

TRUST AGREEMENT

            This
Trust Agreement made as of July 12, 1994 by and between UAL Corporation,
a Delaware corporation (the "Company") and State Street Bank and Trust
Company, a Massachusetts trust company (the "Trustee").

 

 
                    
RECITALS:

 

            WHEREAS,
certain employees of the Company and its Affiliates are eligible to receive
certain benefits pursuant to the UAL Corporation Supplemental ESOP (the
"Plan"), a copy of which is attached hereto as Exhibit A and made a part
hereof; and

 

            WHEREAS,
the Company wishes to establish five trusts, as set forth in Section 1(g),
(individually and collectively referred to as the "Trust") and to contribute
Voting Shares, to the Trust to be held therein, subject to the Company's
power to revoke the Trust to the extent provided below, in whole or in
part, at any time or from time to time, and subject to the claims of the
Company's creditors in the event of the Company's Insolvency, as hereinafter
defined, until distributed to the Participants and their beneficiaries
("Trust Beneficiaries") as benefits in such manner and at such times as
specified in the Plan;

 

            WHEREAS,
it is the intention of the parties that this Trust shall constitute an
unfunded arrangement and shall not affect the status of the Plan as constituting
both (i) an unfunded plan maintained for the purpose of providing deferred
compensation for a select group of management or highly compensated employees
for purposes of Title I of the ERISA and (ii) an excess plan under Section
3(36) of ERISA.

 

            NOW,
THEREFORE, the parties do hereby agree that the Trust shall be composed,
held and disposed of as follows:

 

Section 1.     Trust Fund.

                               
(a)     The Company from time-to-time shall contribute
Voting Shares to Trust-1, Trust-2 and Trust-3 in accordance with the Plan.

 

 
                               
(b)     Subject to the provisions of Sections 3 and
4, the Company may not revoke the Trust.

 

                               
(c)     The Trust is intended to be a grantor trust,
of which the Company is the grantor, within the meaning of Sections 671-677
of the Internal Revenue Code of 1986, as amended, and shall be construed
accordingly.

 
                               
(d)     The principal of the Trust, and any earnings
thereon, shall be held separate and apart from other funds of Company and
shall be used exclusively for the uses and purposes of Trust Beneficiaries
and general creditors as herein set forth. Notwithstanding any other provision
of this Trust Agreement to the contrary, no Trust Beneficiary shall have
any preferred claim on, or any beneficial ownership interest in, any assets
of the Trust. Any rights created under the Plan and this Trust Agreement
shall be mere unsecured contractual rights of Trust Beneficiaries against
the Company and his Employer in accordance with the Plan. Any assets held
by the Trust will be subject to the claims of Company's general creditors
in the event of Insolvency, as defined in Section 3(a) herein. No rights
to a distribution under the Plan shall be created under this Trust Agreement
independently of any Trust Beneficiary's right to a distribution or payment
under the Plan. Neither the Company nor the Trustee shall have any power
to create a security interest in the assets of the Trust in favor of any
Trust Beneficiary, any person entitled to a Plan benefit by reason of the
death of any Trust Beneficiary or any creditor of the Company. Nothing
contained herein or in any provision of the Plan shall operate to create
a security interest in any part of the assets of the Trust on behalf of
any Trust Beneficiary or any person entitled to benefits upon the death
of any Trust Beneficiary.

 

                           
(e)     In accordance with the Plan, as directed by
the Company, the Trustee shall transfer certain Shares from the Trust to
the ESOP Trust.

 

                           
(f)     This Trust consists of five trusts, each of
which are set forth in this Trust Agreement. The trusts are: (i) a trust
holding the Class P Voting Shares allocated to the Accounts of Participants
under the Plan ("Trust 1 "); (ii) a trust holding the Class S Voting Shares
allocated to the Accounts of Participants under the Plan ("Trust-2"); (iii)
a trust holding the Class M Voting Shares, if any, allocated to the Accounts
of Participants under the Plan ("Trust-3"); (iv) a trust which holds the
Convertible Shares sold or contributed to such Trust, if any, as described
in Section 1(h) ("Trust-4"); and (v) a trust holding the Convertible Shares
sold or contributed to the Trust, if any, that have been allocated to the
Accounts of Participants under the Plan ("Trust-5"). For ease of reference,
all of such trusts shall be referred to as the "Trust;" such a reference
shall constitute a reference to each of the appropriate trusts. At such
times that any Participant receives an allocation of Convertible Shares
under the Plan, the Trustee shall transfer the appropriate number of Convertible
Shares from Trust-4 to Trust-5.

 

                           
(g) Section 1.5 of the Plan is incorporated by reference (excluding Section
1.5(a), (b), and (f)), but with such modifications as are necessary in
light of the fact that this document creates a trust.

 

 

                           
(h)     As provided in Sections 6.1 (e) and 6.9 of
the Plan, at the written election of ALPA, the Company shall sell or contribute
Convertible Shares to the Trustee of Trust-4 and Trust-5. Such Convertible
Shares shall become the principal of Trust-4 and Trust 5 to be held, administered
and disposed of by the Trustee as provided in this Trust Agreement. In
the case of a sale of such Convertible Shares to the Trust, the Company
shall contribute to the Trust an amount of cash and/or accept the Trustee's
promissory note (to be immediately forgiven or repaid with additional cash
contributed by the Company to the Trust) sufficient to permit the Trustee
to consummate such purchase. The Company shall also cause to be delivered
to the Trust an appropriate number of shares of Common Stock to satisfy
the requirements of Sections 6.1(e) or 6.9 of the Plan.

 

 

Section 2.      Payments to Trust Beneficiaries.

                           
(a)     Subject to Section 3 hereof, the Trustee shall
distribute the Plan benefits in accordance with the Plan as directed by
the Committee, as hereinafter set forth, if and to the extent that Shares
are available for such distribution. Alternatively, if directed by the
Company, the Trustee shall return distributable Voting Shares (of the applicable
series) to the Company for prompt distribution as Plan benefits in accordance
with the Plan. Subject to the provisions of Section 3, a Trust Beneficiary
shall be entitled to a distribution from the Trust in accordance with the
preceding sentence and the terms of the Plan, provided that the obligation
of the Participant's Employer and the Company under the Plan has not been
satisfied otherwise. The Committee will instruct the Trustee as to the
eligibility of any Trust Beneficiary for such distribution, the correct
amount of each distribution and when to make the distribution to the Trust
Beneficiary (or return such amounts to the Company for distribution as
provided above). The Committee or its designee shall keep accurate records
with respect to the benefits payable from the Trust and the Trustee may
rely upon such records without a duty of further inquiry in performing
its duties under this Trust Agreement. To the extent benefits have been
paid from the Trust hereunder, the Company shall be relieved of its obligation
to pay such benefits. To the extent benefits are returned to the Company
from the Trust, the Trust shall be relieved of its obligations to pay such
benefits.

 
                           
(b)     If at any time the number of Shares held in
the Trust is not sufficient to make any directed distribution of benefits,
in accordance with the Plan, to any Trust Beneficiary then entitled
to a distribution, the Trustee shall distribute the balance of the Shares
(and any other assets) held in the Trust (or return them to the Company
for distribution as provided above) to or on behalf of all the Trust Beneficiaries
then entitled to distributions in the following manner: the benefits to
be distributed to any Trust Beneficiary shall be equal to the balance of
Trust assets multiplied by a fraction the numerator of which is the amount
of benefits such Trust Beneficiary is entitled to distribution of at that
time and the denominator of which is the amount of benefits all Trust Beneficiaries
are entitled to distribution of at that time (the foregoing calculations

to be made on an Employee Group-by-Employee Group basis, for example,
assets held in Trust 1 shall be available for distribution only to members
of the ALPA Employee Group). No provision of this Trust Agreement shall
relieve the Company of its liabilities to pay benefits except to the extent
that the same have been paid from the Trust hereunder.

 

                           
(c)     The Trustee shall make provision for withholding
of any federal, state or local taxes that may be required in accordance
with Section 6.5 of the Plan.

 

                           
(d)     The Trustee shall provide the Company with
written confirmation of the fact and time of any commencement of payments
directly to a Trust Beneficiary hereunder within 30 business days after
any payments commence to a Trust Beneficiary. The Company shall notify
Trustee in the same manner of any payments an Employer commences to make
to a Trust Beneficiary pursuant to the Plan.

 

 

Section 3.     Trustee Responsibility Regarding
Payments to a Trust Beneficiary When the Company is Insolvent.
 

                           
(a)     Trustee shall cease payment of benefits to
Trust Beneficiaries if the Company is Insolvent. The Company shall be considered
"Insolvent" for purposes of this Trust Agreement if (i) the Company is
unable to pay its debts as they become due, or (ii) the Company is subject
to a pending proceeding as a debtor under the United States Bankruptcy
Code.

 
                           
(b)     At all times during the continuance of this
Trust, as provided in Section 1(d) hereof, the principal and income of
the Trust shall be subject to claims of general creditors of the Company,
but only as set forth below:

 

(i)  The Board of Directors and the Chief Executive Officer of
the Company shall have the duty to inform the Trustee in writing of the
Company's Insolvency. If a person claiming to be a creditor of the Company
alleges in writing to the Trustee that the Company has become Insolvent,
the Trustee shall determine whether the Company is Insolvent and, pending
such determination, the Trustee shall discontinue payment of benefits to
Trust Beneficiaries.

 
(ii)  Unless the Trustee has actual knowledge of the Company's
Insolvency, or has received notice from the Company or a person claiming
to be a creditor alleging that the Company is Insolvent, the Trustee shall
have no duty to inquire whether the Company is Insolvent. The Trustee may
in all events rely on such evidence concerning the Company's solvency as
may be furnished to the Trustee and that provides the Trustee with a reasonable
basis for making a determination concerning the Company's solvency.

(iii)  If at any time the Trustee has determined that the Company
is Insolvent, the Trustee shall discontinue payments to Trust Beneficiaries
and shall hold the assets of the Trust for the benefit of the Company's
general creditors. Nothing in this Trust Agreement shall in any way diminish
any rights of Trust Beneficiaries to pursue their rights as general creditors
of the Company with respect to benefits due under the Plan or otherwise.

 
(iv)  The Trustee shall resume the payment of benefits to Trust
Beneficiaries in accordance with Section 2 of this Trust Agreement only
after the Trustee has determined that the Company is not Insolvent (or
is no longer Insolvent).

                           
(c)     Provided that there are sufficient assets,
if the Trustee discontinues the payment of benefits from the Trust pursuant
to Section 3(b) hereof and subsequently resumes such payments, the first
payment following such discontinuance shall include the aggregate amount
of all payments due to Trust Beneficiaries under the terms of the Plan
for the period of such discontinuance, less the aggregate amount of any
payments made to Trust Beneficiaries by the Company in lieu of the payments
provided for hereunder during any such period of discontinuance.

 
Section 4.     Term and Payments to the Company.

                   
Unless sooner terminated by a written instrument executed by the Company
(with the approval of ALPA (and the IAM, only if the Trust Agreement is
amended to provide for an additional trust to hold Class M Voting Shares)),
this Trust shall terminate upon the earlier of (a) the satisfaction of
all of each Employer's obligations under the Plan with respect to Voting
Shares (and any other Shares held in the Trust) to the Trust Beneficiaries
(including the transfer of all such Shares to ESOP (Part B)), (b) if required
to comply with applicable law regarding the maximum length for which trusts
may be established, the twenty-first anniversary of the death of the last
to survive of the Employees who are Trust Beneficiaries as of the date
of execution of this Trust Agreement, (c) the exhaustion of all appeals
of a final determination of a court of competent jurisdiction that the
interests in the Trust of Trust Beneficiaries are includable for federal
income tax purposes in the gross income of such Trust Beneficiaries, without
such determination having been reversed (or the earlier expiration of the
time of appeal), (d) a determination by the Board of Directors of the Company
to terminate the Trust because applicable law requires it to be amended
in a way that could make it taxable and failure to so amend the Trust Agreement
would subject the Company to material penalties or liabilities, (e) a determination
by the Board of Directors of the Company to terminate the Trust because
the Company concludes, after consulting with legal counsel reasonably satisfactory
to ALPA, that there is a significant possibility that the Trust will not
be considered a grantor trust under the Code or an unfunded plan for purposes
of Title I of ERISA and either ALPA concurs or the Board has determined
that failure to terminate will subject the Company to material penalties
or liabilities, or (f) the dissolution or liquidation of the Company. The
Company shall provide reasonable notice to ALPA prior to any such termination.
Upon any termination of the Trust, all remaining Shares and other assets,
if any, held in the Trust shall be delivered to the Company.

 
Section 5.      Powers of the Trustee.

                           
(a)     The Trustee shall maintain books of account
and records with respect to the Fund. The Fund shall be held by the Trustee
in trust and dealt with in accordance with the provisions of this Trust
Agreement. The Trustee shall take all action necessary to implement any
written directions received from the Committee or the Company and shall
conform to procedures established by the Committee for disbursement of
funds in accordance with the terms of the Plan.

 
                           
(b)     It shall be the duty of the Trustee (i) to
hold, invest and reinvest the Fund in accordance with the provisions of
this Trust Agreement, and (ii) to pay moneys therefrom in accordance with
the written directions of the Committee.

 

                           
(c)     To the extent that Company contributions are
made in Company Stock, the Trustee shall retain such Company Stock. The
Trustee shall invest any other assets of the Trust exclusively in Company
Stock (except for de minimis investments of cash pending investment in
Company Stock or pending distribution to Participants). The Trustee shall,
at the direction of Committee, acquire Company Stock either from other
shareholders or directly from the Company. If at the time Company Stock
is to be purchased, the Company has outstanding more than one class of
Company Stock, the Committee shall direct the Trustee as to which class
of Company Stock shall be purchased. The Trustee may rely in good faith
without liability upon the valuation of Company Stock as determined by
the Committee. Subject to the preceding sentences of this Section 5(c),
the Trustee may also, at the direction of the Committee, invest the Fund
in temporary investments other than Company Stock, may hold such portion
of the Fund in such investments as may be required under the Plan, may
hold such portion of the Fund uninvested as the Committee deems advisable
for making distributions under the Plan, may invest assets of the Trust
in short-term investments bearing a reasonable rate of interest, including,
without limitation, deposits in, or short-term instruments of, the Trustee.

 

                           
(d)      The Trustee shall have no duty hereunder
to determine or inquire into whether any directions received from the Committee
in accordance with the terms of this Trust Agreement represent proper and
lawful decisions. The Trustee shall have no duty to review any investment
to be acquired, held or disposed of pursuant to such instructions from
the Committee. If the Trustee does not receive written directions with
respect to any part of the Fund subject to the Committee's direction (including,
without limitation, income, sale proceeds or contributions), the Trustee
shall, pending receipt of

such directions, hold and invest such amount in short-term securities
as provided in subsection (c) hereof.

 

                           
(e)     In addition to, and not in limitation of, the
powers now, or which may later become, vested in it, the Trustee shall
have the following powers; provided, however, that the Trustee's exercise
of such powers shall be consistent with and subject to all other provisions
of this Trust Agreement, and provided further that, subject to the provisions
of Section 7(g), the powers set forth in clauses (i)-(v) shall be exercised
by the Trustee only to the extent and in the manner directed by the Committee
in accordance with the terms of this Trust Agreement, except as otherwise
required by applicable law:

 

               
(i)  To hold, invest and reinvest the principal or income of the Trust
in bonds, common or preferred stock, other securities, or other personal,
real or mixed tangible or intangible property, including any securities
issued by the Company or its Affiliates (including investment in deposits
with Trustee which bear a reasonable interest rate, including without limitation
investments in trust savings accounts, certificates of deposit, time certificates
or similar investments or deposits maintained by the Trustee);

 
               
(ii)  To exercise voting rights either in person or by proxy, with
respect to any securities or other property, and generally to exercise
with respect to the Fund all rights, powers and privileges as may be lawfully
exercised by any person owning similar property in his own right;

 

               
(iii)  To exercise any options, conversion rights, put rights, or
rights to subscribe for additional stock, bonds or other securities appurtenant
to any securities or other property held by it, and to make any necessary
payments in connection with such exercise, and to join in, dissent from,
and oppose the reorganization, consolidation, recapitalization, liquidation,
merger or sale of corporate property with respect to any corporations or
property in which it may be interested as Trustee;

 

               
(iv)  To compromise, compound, and settle any debt or obligation owing
to or from it as Trustee, and to reduce or increase the rate of interest
on, extend or otherwise modify, foreclose upon default, or otherwise enforce
any such obligation;

 

               
(v)  To sue or defend suits or legal proceedings to enforce or protect
any interest of the Trust, and to represent the Trust in all suits or legal
proceedings in any court or before any other administrative agency, body
or tribunal, provided that the Trustee is indemnified to the Trustee's
satisfaction against liability and expenses;

 

               
(vi)  To hold any property at any place;
 

               
(vii)  To make, execute, acknowledge and deliver assignments, agreements
and other instruments;

 
               
(viii)  To register any securities held by it hereunder in its own
name or in the name of a nominee with or without the addition of words
indicating that such securities are held in. a fiduciary capacity, to permit
securities or other property to be held by or in the name of others, to
hold any securities in bearer form and to deposit any securities or other
property in a depository, clearing corporation or similar corporation,
either domestic or foreign; provided, however, that the records of the
Trustee shall at all times show that any such property held or registered
in the name of another is part of the Fund;

 

               
(ix)  To employ legal counsel, brokers and other advisors, agents
or employees to perform services for the Fund or to advise it with respect
to its duties and obligations under this Trust Agreement and in connection
with the Trust, and to pay them reasonable compensation from the Fund,
to the extent not paid directly by the Company or its Affiliates; and

 

               
(x)  To open and make use of banking accounts including checking accounts,
which accounts, if bearing a reasonable rate of interest or if checking
accounts, may be with the Trustee.

 

                           
(f)      If the Committee directs the Trustee
to dispose of any investment or security or any part thereof under circumstances
which in the opinion of the counsel for the Trustee require registration
under the Securities Act of 1933 or qualification under state "Blue Sky"
laws, then the Company, at its own expense, shall take or cause to be taken
all such action necessary or appropriate to effect such registration and
qualification. The Trustee shall not be required to dispose of such investment
until such registration and qualification are complete and effective, and
shall not be liable for any loss or depreciation of the Fund resulting
from any delay attributable thereto. The Company shall indemnify and hold
the Trustee and its officers and directors harmless with respect to any
liability, reasonable legal counsel fees, and other costs and expenses
incurred as a result of such registration or qualification or as a result
of any information in connection therewith furnished by the Company or
any failure by the Company to furnish any information.

 

                           
(g)      In addition to, and not in limitation
of, the powers vested and to be vested in it by law or enumerated in this
Section 5, the Trustee shall have the power to take any action with respect
to the Fund as is appropriate and helpful in carrying out the purposes
of this Trust Agreement, subject to any directions of the Committee as
provided herein.

 

                           
(h)      Notwithstanding any powers granted to
the Trustee pursuant to this Trust Agreement or 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 Administrative Regulations promulgated
pursuant to the Code.

 
Section 6.      Accounting by the Trustee.

                           
(a)      The Trustee shall keep accurate and detailed
accounts of all its transactions (including investments, receipts and disbursements)
under this Trust Agreement. These records shall be open to inspection and
audit during regular business hours of the Trustee by the Committee or
any person or persons designated by the Committee or the Company in a written
instrument filed with the Trustee. If mutually agreed upon in a separate
writing by the Committee and the Trustee, the Trustee shall establish and
maintain accounts for Participants which shall show their respective interests,
determined in accordance with the terms of the Plan, in the Fund; provided,
however, that to the extent that such accounts are kept by the Trustee
on the basis of information furnished or caused to be furnished to it by
the Committee, the Trustee shall have no responsibility for the accuracy
of any information so furnished. All such accounts and records shall be
preserved (in original form, or on microfilm, magnetic tape or any other
similar process) for such period as the Trustee may determine, but the
Trustee may destroy such accounts and records only after first notifying
the Comnuttee and the Company in writing at least ninety (90) days in advance
of its intention to do so and transferring to the Committee or the Company
any such accounts and records requested.

 
                           
(b)      Within sixty (60) days after the close
of each Plan Year, the Trustee's removal or resignation as Trustee hereunder,
or the termination of the Plan or this Trust Agreement, the Trustee shall
file with the Committee an account setting forth all its transactions (including
all investments, receipts and disbursements) under this Trust Agreement
during such year, or during the period from the close of the last preceding
Plan Year to the effective date of its removal or resignation or the termination
of the Plan or this Trust Agreement, 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 purchases or sales (accrued interest paid or receivable
being shown separately), 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; provided, however, that in the event
shares of Company Stock are then held in the Trust and final valuation,
if necessary, with respect to such Company Stock for any such accounting
period is not received by the Trustee within thirty (30) days of the date
the Trustee is required to render an accounting under the foregoing provision,
then the Trustee shall not be required to render such account until thirty
(30) days from the date such valuation report is received by the Trustee.
The Committee and the Trustee may agree in writing that similar accounts
will be prepared by the Trustee and filed with the Committee at more frequent
intervals. No person or persons (including, without limitation, the Company
and the Committee) shall be entitled to any further or different accounting
by the Trustee, except as may be required by law.

 

                           
(c)      Twenty-four (24) months after the filing
with the Committee of the annual accounts for the 1994 and 1995 fiscal
years of the Trust and twelve (12) months after the filing of any other
account with the Committee under subsection (b), the Trustee shall be forever
released and discharged from any liability or accountability to the Company
and the Committee with respect to the transactions shown or reflected on
the account, except with respect to any acts or transactions as to which
the Committee, within the applicable period, files written objections with
the Trustee. The written approval of the Committee of any account filed
by the Trustee, or the Committee's failure to file written objections within
the applicable period, shall be a settlement of such accounts as against
the Company and the Committee, and shall forever release and discharge
the Trustee from any liability or accountability to the Company and the
Committee with respect to the transaction shown or reflected on such account.
If a statement of objection is filed by the Committee and the Committee
is satisfied that its objections should be withdrawn or if the account
is adjusted to its satisfaction, the Committee shall indicate its approval
of the account in a written statement filed with the Trustee and the Trustee
shall be forever released and discharged from all liability and accountability
to the Company and the Committee in accordance with the immediately preceding
sentence. If an objection is not settled by the Committee and the Trustee,
the Trustee may commence a proceeding for a judicial settlement of the
account in any court of competent jurisdiction; the only parties that need
be joined in such a proceeding are the Trustee, the Committee, the Company
and such other parties whose participation is required by law.

 

Section 7.      Responsibilities and Powers
of Trustee.

                           
(a)     The Trustee shall act with the care, skill,
prudence and diligence under the circumstances then prevailing that a prudent
man acting in a like capacity and familiar with such matters would use
in the conduct of an enterprise of alike character and with like aims.
The Trustee shall incur no liability hereunder except as provided by applicable
law.

 
                           
(b)     Subject to the provisions of Section 3(b),
the Trustee shall have no duty to make an independent investigation as
to the occurrence of any event giving rise to a distribution hereunder
or under the Plan, and shall be entitled to rely conclusively on the determinations
of the Company, the Board of Directors, the Company's Chief Executive Officer,
or the Committee, as the case may be, as to the occurrence of any such
event, which determinations shall be binding upon the Trustee, the Company
and the Trust Beneficiaries. To the extent permitted by applicable law,
the Trustee shall be indemnified by the Company against any and all liabilities,
settlements, judgments, losses, costs, and expenses (including reasonable
legal fees and expenses) of whatever kind and nature which may be imposed
on, incurred by or asserted against the Trustee by reason of the performance
or nonperformance of its trustee function under this Trust Agreement, except
to the extent such action or inaction constituted negligence, willful misconduct
or failure to act in good faith on the part of the Trustee.

 

                           
(c)     The Trustee may hire agents, accountants and
attorneys (including the Company's attorneys) to assist with its responsibilities
under this Trust Agreement subject to the consent of the Company.

 

                           
(d)     The Trustee shall have, without exclusion,
all powers conferred on trustees by applicable law unless expressly provided
otherwise herein.

 

                           
(e)     The Committee or the Company shall direct the
Trustee in administering the Trust, as provided in this Trust Agreement.

 

                           
(f)     Any corporation into which the Trustee (or
any other corporation acting as Trustee) shall be merged or with which
it shall be consolidated, or any corporation resulting from any merger,
reorganization or consolidation to which it shall be a party, or any corporation
to which all or substantially all of its trust business shall be transferred,
shall be the successor of the Trustee (or of any other corporation acting
as Trustee) as Trustee under this Trust Agreement, without the execution
or filing of any instrument or the performance of any further act or the
order or judgment of any court and with the same powers, authorities and
discretions.

 

                           
(g)     Section 6.9 of the Plan is hereby incorporated
by reference.

 

                           
(h)     The Company shall provide the Trustee with
such information and assistance as the Trustee may reasonably request in
connection with any communication or distributions to Trust Beneficiaries.

 

 

Section 8.      Compensation and Expenses
of the Trustee; Taxes.

                           
(a)     The Trustee shall be entitled to receive such
reasonable compensation for its services and reimbursement for reasonable
expenses incurred with respect to the administration of the Trust, including
fees incurred by the Trustee pursuant to Section 7(c) of this Trust Agreement,
in either case as shall be agreed upon between the Trustee and the Company.
Such compensation and expenses shall be paid by the Company.

 

 
                           
(b)     The Trustee shall not be personally liable
for any real and personal property taxes, transfer taxes, any income taxes
(imposed on the Trust) and other similar taxes of any kind levied or assessed
under the existing or future laws against the Fund. Such taxes shall be
paid by the Company.

 

 

Section 9.      Replacement of the Trustee.

                           
(a)     The Trustee may resign at any time, subject
to the appointment and qualification of a successor trustee, by giving
60 days prior notice of such resignation in writing to the Company. The
Trustee may be removed by the Company (with the consent of ALPA) upon 60
days prior notice. In the event of the resignation or removal of the Trustee,
a successor corporate trustee shall be appointed by the Company (with the
consent of ALPA). The appointment shall be effective when accepted in writing
by the new Trustee, who shall have all of the rights and powers of the
former Trustee, including ownership rights in the Trust assets.

 
                           
(b)     In the event of the appointment of a successor
trustee, such successor trustee will succeed to all the right, title and
estate of, and will be, the Trustee; and the retiring trustee will deliver
the Trust to the successor trustee together with all such instruments of
transfer, conveyance, assignment and further assurance as the successor
trustee may reasonably require.

 

Section 10.      Amendment.

                           
(a)     Subject to ALPA approval, this Trust Agreement
may be amended by a written instrument executed by the Company at any time
and to any extent except that, subject to the limitation below, in no event
shall the rights of the creditors of the Company be diminished and no amendment
may be made which would permit the Company to revoke the Trust in violation
of Section 1(b). In addition, no amendment may be made without the Trustee's
consent which would increase the Trustee's duties or responsibilities under
this Trust Agreement.

 
                           
(b)     The Plan may be amended from time to time by
the Company in accordance with its terms without the consent or concurrence
of the Trustee and the Company will provide the Trustee with such amendments
in a timely manner. The Company shall provide the Trustee with a copy of
any amendment, certified by the Company's Secretary, Assistant Secretary
or such person's designee, within 90 days after its adoption. In the event
of any conflict between the Plan and this Agreement concerning the Trustee's
responsibilities, this Trust Agreement shall govern.

 

                           
(c)     If Shares allocable to members of the IAM Employee
Group are contributed to the Trust, the parties agree to amend the Trust
Agreement to provide for the holding of such Shares, to provide for notice
to, consent and approval of the IAM with respect to such Shares consistent
with the provisions in this Trust Agreement requiring notice to, or the
consent or approval of, ALPA. The amendment in this Section 10(c) does
not require the approval of ALPA.

 

 

Section 11.      Severability and Alienation.

                           
(a)     Any provision of this Trust Agreement prohibited
by law shall be ineffective to the extent of any such prohibition without
invalidating the remaining provisions hereof and the Trust Agreement shall
reconstituted and enforceable as if such illegal provision were never included.

 
                           
(b)     Subject to the provisions of Section 3 and
Section 6.3 of the Plan (which is hereby incorporated by reference), benefits
under this Trust Agreement may not be anticipated, assigned (either at
law or in equity), alienated or subject to attachment, garnishment, levy,
execution or other legal or equitable process.

 

 

Section 12.      Governing Law.

                   
This Trust Agreement shall be governed by and construed in accordance with
the laws of the Commonwealth of Massachusetts.

 

 
Section 13.      Notices.

                           
(a)     Communications to the Company shall be addressed
to the Company at P.O. Box #66919, Chicago, IL 60666, Attention: Corporate
Secretary (if by mail) and at 1200 Algonquin Road, Elk Grove Township,
Illinois 60006, Attention: Corporate Secretary, if by courier; provided,
however, that upon the Company's written request, such communications shall
be sent to such other addresses as the Company may specify.

 
                           
(b)     Communications to the Trustee shall be addressed
to it at 225 Franklin Street, Boston, Massachusetts 02110, Attention: UAL
ESOP Administration; provided, however, that upon the Trustee's written
request, such communications shall be sent to such other address as the
Trustee may specify.

 

                           
(c)     Communications to the Committee shall be addressed
to the Committee at such address as the Committee may specify.

 

                           
(d)     Communications to ALPA shall be addressed to
UAL MEC/ALPA at 6400 Shafer Court, Suite 700, Rosemont, Illinois 60018;
provided, however, that upon ALPA's written request, such communications
shall be sent to such other address as ALPA may specify.

 

 

                           
(e)     No communication shall be binding on the addressee
thereof prior to receipt thereof.

 

 

Section 14.      Signature in Counterparts.

                   
This Trust Agreement may be signed in counterparts, each of which shall
be an original but all of which together will constitute one and the same
instrument.

 
Section 15.      Defined Terms.

                   
Capitalized terms not otherwise defined herein shall be defined in accordance
with the Plan.

 
                   
"Fund" means the contributions of cash or property reasonably acceptable
to the Trustee, including, but not limited to, Company Stock deposited
with or purchased by the Trustee and held under this Trust by the Trustee,
any property into which the same or any part thereof may from time to time
be converted, and any appreciation therein or income thereon less any depreciation
therein, any losses thereon and any distributions or payments therefrom.

 

 

                   
"Shares" shall mean Voting Shares and, to the extent applicable,
Convertible Shares and/or Common Stock, as the context requires.

 

 

"Trust" shall mean the five trusts described in Section 1(f).

 

 

 

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

 

UAL CORPORATION

 

 
By:  /s/      J. R. O'Gorman

Title:  Executive Vice President

 

 

 

 

STATE STREET BANK AND TRUST

COMPANY

 

 

By:

Title:

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

 
UAL CORPORATION

 

 
By:

Title:

 

 

 

STATE STREET BANK AND TRUST

COMPANY

 

 

By:  /s/     Kelly Q. Driscoll

Title: Vice President

 

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