Officer Benefits Agreement between UAL Corporation and United Air Lines, Inc.
UAL Corporation and United Air Lines, Inc. provide a range of benefits to their officers, including travel privileges for officers and their families, financial advisory and tax preparation services, reimbursement for certain club memberships, and various welfare benefits such as life insurance, accidental death and dismemberment coverage, and supplemental long-term disability insurance. Some senior officers are also entitled to company cars. These benefits are subject to specific eligibility requirements, monetary limits, and company policies.
UAL Corporation and United Air Lines, Inc.
Travel Benefits
Positive - space travel on United Airlines or United Express is provided to officers of UAL Corporation and United Airlines and their eligible dependents, and cash payments are made to federal and state tax authorities on behalf of each officer to cover tax liability on the value of travel benefits. This benefit includes membership to United's Red Carpet Club.
Financial Advisory Services
Financial advisory tax preparation services are provided to designated officers of UAL and United. Reimbursement is limited to $7,000 in the first year the officer is eligible for to the program and to $4,000 per year thereafter. Unused reimbursements may be carried over and used in succeeding years.
Club Memberships
Payment is made by United for the cost of social and business club memberships for designated officers where there is a benefit to be realized by the company. The Company does not pay dues for clubs, which discriminate on the basis of race, sex, religion or national origin. Such memberships are authorized by the Chairman consistent with long-standing company policies.
Welfare Benefits
Officers receive a company paid group variable universal life insurance program which provides for insurance in an amount equal to three times base salary. The premium is paid by United.
Officers are eligible to enroll in 24-Hour Accidental Death and Dismemberment (AD&D) insurance coverage which pays up to a $500,000 benefit upon the accidental death or dismemberment of the insured.
Officers are provided a self-insured supplemental long-term disability plan, which provides a supplement to the Company's disability benefit for certain management employees equal to 50% of monthly pay in excess of $20,000.
Company Cars
The Chairman, President and Chief Executive Officer and certain other senior officers are entitled to the use of cars owned or leased by United. For 2005, the Company did not own or lease any cars for the use of an individual executive, other than the Chief Executive Officer.
