Document:

United Contract Number:

                                                                                                                       
Exhibit 10.56

                                                                                                         
Contract No:  162496

AGREEMENT

        THIS AGREEMENT (the "Agreement")
is made and entered into as of February 16, 2003 (the "Effective Date")
between United Air Lines, Inc. ("UA") and UAL Corporation ("UAL", UA and
UAL sometimes collectively referred to as "United") and Andrew P. Studdert
residing at 2844 Blackhawk Road, Wilmette, Illinois 60091 (sometimes referred
to as "Executive").

        WHEREAS, Executive is presently
an employee of UA (such position is hereinafter referred to as the "Executive
Position");

        WHEREAS, United and Executive
desire to fully settle and resolve any and all issues arising out of Executive's
employment with United and the termination of his or her full time employment
as an executive officer by 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.     Continued Employment. 
Effective as of the Effective Date, Executive will continue to be actively
employed by United, and Executive will perform services for United by being
"on call", including testifying on behalf 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 that such requests
shall not unreasonably interfere with any employment or business pursuits,
including consulting, that Executive may be engaged in from time to time.

     2.     Time Period of
Employment

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 September
30, 2004 or (ii) the termination of this Agreement and Executive's employment
pursuant to Paragraph 4 hereof (such period, the "Term").

 B.      Notwithstanding the foregoing,
if the Term ends pursuant to Paragraph 2(A)(ii) above, by virtue of the
operation of Paragraph 4(A)(i), Executive's beneficiaries will have the
benefits accorded to the beneficiaries of an active officer who dies.

 

 

     3.     Compensation
and Benefits.

     A.      Salary. 
Commencing on February 16, 2003 through the end of the Term, United will
pay Executive a monthly salary in the amount of $1,000.00. 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.  All payments
made pursuant to this paragraph 3 will be subject to withholding for taxes
and other purposes as required by applicable law.

     B.      Incentive
Compensation. Executive will not be eligible for an award under the
Performance Incentive Plan or any successor plan for 2003 or any subsequent
year.

    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
and officer travel policies as revised from time to time.
(ii)     United Air Lines, Inc. Management, Administrative
and Public Contact Defined      
Benefit
Pension "Plan". Executive shall continue to receive service credit
under The          Term. 
No participation credit will be given under any defined qualified or non-        
qualified benefit plan commencing on The Effective Date.

(iii)   Management Medical/Dental.  Executive
and his or her 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) based on his or her annual salary amount
immediately prior to the Effective Date, 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 or payment is made by
such other means as is satisfactory to United.

(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.  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 forfeit any unvested restricted stock granted to him or
her pursuant to the Equity Plans.

          (b)  Executive
will not be eligible for any grants made under the Equity Plans, or any
successor plans, after the Effective Date

(vii)      Other Benefits.  Executive
will continue to be eligible to participate in the Flexible Spending Account,
and will 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.  No
vacation or holiday time will be accrued or taken after the Effective Date. 
Executive forfeits any unused accrued vacation.

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

(x)     Office Equipment.  Executive
shall return all office equipment, access badges, parking cards, UATP cards,
credit card, cellular telephones, pagers and other wireless        
devices provided to him or her by United.

(xi)    Disability Income Benefits.  You
will not be eligible for the Disability Plan (the "LTD Plan").

     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.
       A.     Non-Election
of Executive.  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 payment and 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 4(B)(i) 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 Supervisor, which demand specifically identifies
the manner in which the Supervisor believes that Executive has not substantially
performed Executive's duties, and Executive shall not have substantially
performed within a reasonable time after receipt of such notice, 
(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.

       B.     Election
of Executive.  (i) During the Term, if Executive elects to terminate
his or her employment for any reason, Executive will receive no further
payments under Paragraphs 3(A) above, and will no longer be entitled to
any benefits under Paragraph 3(C) (other than benefits required by law
or otherwise vested). Before Executive's election to terminate under this
paragraph can become effective, Executive must have provided United seven
(7) days' written notice of his election by registered mail addressed to
the General Counsel of United at its principal World Headquarters offices. 
Executive's termination of employment will be as of the seventh (7th) day
after receipt by United of such notice, at which time he or she will no
longer have the status of an active employee of United (including the entitlement
to benefits described in Paragraph 3(C), other than benefits required by
law or otherwise vested).

(ii)       During the Term, if Executive
takes a Competitive Position (as defined below) with a Competitor (as defined
below) upon agreeing to

           such employment,
he:
 

(a) must immediately so notify United in writing by registered mail
addressed to the General Counsel of United at its principal World Headquarters
offices;
(b) will be deemed to have elected to terminate his employment under
this Agreement (including the entitlement to benefits described in Paragraph
3(C)) effective as of the day Executive becomes employed by such Competitor;
and

(c) will be entitled to no further compensation after such effective
date.

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 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 during the Term, Executive desires to provide services whether as a
consultant, employee or otherwise to a Competitor and requests that United
consent to such provision of such services, United will reasonably consider
such request and will not unreasonably withhold, delay or condition its
consent.  In the event United consents to Executive's providing such
services, there will not be a termination of the Executive's employment
under the Agreement pursuant to this Paragraph 4(B)(ii).

       C.     Survival. 
Notwithstanding any termination of Executive's employment under this Agreement,
Executive shall continue to be bound by (1) the provisions of Paragraphs
6 through 16 hereof, and (2) the provisions of Paragraph 4(B)(ii)(a) hereof.

       5.     Regulations. 
During his or her 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
two (2) 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 or she 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 to keep the terms of and circumstances surrounding this
Agreement and of his or her working arrangement, as defined herein, confidential
except that the source and amount of his or her income may be revealed
as necessary for tax, loan purposes and the like.

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 willfully 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, during
the Term, directly or indirectly, for the benefit of any Competitor (as
defined in Paragraph 4(B) 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 or her
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 to either (1) indemnification pursuant to United's bylaws or applicable
law or (2) any vested benefit under United's employee benefit plans.
       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 or before February 20, 2003.  Executive has been
informed that Executive

           
has not less than twenty-one (21) days from February 20, 2003 within which
to consider the Agreement and, if Executive

           
considers this Agreement for fewer than 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 and UA acknowledge that
Executive and UA may hereafter discover claims or facts in addition to
or different from those which Executive and UA 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.
       D.      
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 hereby expressly release Executive from any an 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 UA or UAL ever had, now has 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 execution of this Agreement.

       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.   
Arbitration. 
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.

17.       Representations by United. 
United hereby represents and warrants to Executive that; (a) the execution,
delivery and performance of this Agreement by United have been duly authorized
by all necessary actions by United, (b) this Agreement has been duly executed
and delivered by United to Executive, and (c) this Agreement constitutes
the valid and legally binding obligation of United and is enforceable against
United in accordance with its terms.

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

18.       No Administrative Claim.
Executive hereby acknowledges and agrees that nothing in this Agreement,
nor any breach thereof, shall give rise to administrative claim under sections
503 or 507 of the Bankruptcy Code and further agrees that he will not assert
an entitlement to such administrative claim the Bankruptcy Court or any
other judicial or arbitral forum.

 

       IN WITNESS WHEREOF, the parties
have executed this Agreement effective as of February 19, 2003, 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/Andrew P. Studdert
          Name:  Glenn
F. Tilton                                                              
Andrew P. Studdert

          Title: Chairman,
President and

          Chief Executive
OfficerEXHIBIT 10.3

                              COMMUNITY BANKS, INC.
                             DIRECTORS STOCK OPTION
                             STOCK OPTION AGREEMENT

TO: ___________________________
         Name

    ---------------------------
         Social Security Number

DATE: ________________________

     You are hereby  granted a  non-qualified  stock option  effective as of the
date hereof, to purchase ____________ shares of Common Stock of Community Banks,
Inc.  ("CBI")  at a price of ______ per share,  pursuant  to the 2000  Community
Banks, Inc. Directors Stock Option Plan (the "Plan").

TIME OF EXERCISE OF OPTION
--------------------------

     A. Your  option  may be  exercised  upon the first to occur of (i) one year
after  the date of this  agreement,  and (ii) a Change  in  Control  of CBI,  as
defined in the Plan.

     B. During your  lifetime,  this option shall be exercisable by only you and
only while you are a director of CBI or one of its  subsidiaries or within three
(3) years after you cease serving as a director.

     C.  If you die  while  this  option  is  exercisable,  this  option  may be
exercised  within three (3) months of your date of death by those entitled under
your will or the laws of descent and distribution, but only if and to the extent
the option was exercisable by you immediately prior to your death.

     D. If you are  removed as a director  for any of the reasons  specified  in
Section  1726(b) of the  Pennsylvania  Business  Corporation  Law of 1988,  this
option shall be forfeited and rendered unexercisable.

     E. Notwithstanding  anything to the contrary in this Agreement,  the option
shall not be  exercised  after and shall  expire ten (10) years from the date of
this Agreement.

METHOD OF EXERCISE
------------------

     You may exercise your option by giving  written  notice to the Secretary of
CBI on forms supplied by CBI at its then principal executive office, accompanied
by payment of the option  price for the total  number of shares you specify that
you wish to  purchase.  The payment may be in any of the  following  forms:  (i)
cash,  which may be evidenced  by a check  (provided,  that any  optionee  whose
employment  has  terminated  and the estate of any deceased  optionee  must make
payment by certified or cashier's check); (ii) certificates  representing shares
of CBI Common  Stock  which will be valued by the  Secretary  of CBI at the fair
market value on the date of exercise,  accompanied by an assignment of the stock
to CBI; or (iii) any combination  thereof. Any assignment of stock shall be in a
form and substance satisfactory to the Secretary of CBI, including guarantees of
signature(s) where he/she deems such guarantees necessary or desirable.

<PAGE>

ADJUSTMENT
----------

     In the event of any change in the outstanding shares of CBI Common Stock by
reason   of  a   stock   dividend,   stock   split,   combination   of   shares,
recapitalization,  merger,  consolidation,  transfer of assets,  reorganization,
conversion,  or what the Compensation  Committee deems in its sole discretion to
be similar  circumstances,  the number and kind of shares subject to this option
and the option price for such shares shall be appropriately adjusted in a manner
to be determined in the sole discretion of the Compensation Committee.

TRANSFERABILITY / RIGHTS PRIOR TO EXERCISE
------------------------------------------

     This option is not  transferable,  except in the event of death as provided
above.  During your lifetime,  this option is exercisable only by you. Until the
option  price has been paid in full  pursuant to due exercise of this option and
the  purchased  shares  are  delivered  to you,  you do not have any rights as a
stockholder  of CBI.  CBI  reserves  the right not to  deliver to you the shares
purchased by virtue of the exercise of this option  during any period of time in
which  CBI  deems,  in its  sole  discretion,  that  such  delivery  may  not be
consummated  without violating a federal,  state,  local, or securities exchange
rule, regulation, or law.

OTHER RESTRICTIONS
------------------

     Notwithstanding  anything to the contrary contained herein,  this option is
not  exercisable  until all the following  events occur and during the following
periods of time:

          (1)  Until  the Plan  pursuant  to which  this  option is  granted  is
               approved by the stockholders of CBI;

          (2)  Until this option and the  optioned  shares are  approved  and/or
               registered with such federal,  state, and local regulatory bodies
               or agencies and securities exchanges as CBI may deem necessary or
               desirable;

          (3)  During   any   period  of  time  in  which  CBI  deems  that  the
               exercisability  of this  option,  the  offer to sell  the  shares
               optioned hereunder,  or the sale thereof,  may violate a federal,
               state, local, or securities exchange rule,  regulation or law, or
               may  cause  CBI to be  legally  obligated  to issue or sell  more
               shares than CBI is legally entitled to issue or sell.

CONFLICTING TERMS
-----------------

     This option shall be subject to the terms of the Plan in effect on the date
this option is granted,  which terms are hereby incorporated herein by reference
and made a part hereof.  In the event of any conflict  between the terms of this
option and the terms of the Plan in effect on the date of this option, the terms
of the Plan shall  govern.  This  option  constitutes  the entire  understanding
between CBI and you with respect to the subject  matter hereof and no amendment,
supplement, or waiver of this option, in whole or in part, shall be binding upon
CBI unless in writing and signed by the President and Chief Executive Officer of
CBI This option and the performances of the parties hereunder shall be construed
in accordance with and governed by the laws of the  Commonwealth of Pennsylvania
applicable to contracts made and to be performed  solely in the  Commonwealth of
Pennsylvania.

ATTEST:                                              COMMUNITY BANKS, INC.

                                            By:
--------------------------------------------    --------------------------------

                                       2
<PAGE>

I hereby acknowledge receipt of a copy of the foregoing Stock Option and, having
read it, hereby signify my understanding of and my agreement with its terms and
conditions.

________________________________________        ________________________________
Witness                                                   (Signature)

______________________
(Date)

                                       3

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