United pilots contract, LOA 23-02 — Ratification Bonus LOA

A. Applicable Definitions

1. “One-time Payment” as used herein means the payment to an Eligible Pilot computed based on the terms contained in this LOA.

2. “Relevant Period” as used herein means any time during bid years 2020, 2021 and 2022, and the period of time between January 2023 Bid Period and September 2023 Bid Period.

3. “Eligible Pilot” as used herein means any Pilot on the United Pilot Seniority List as of September 29, 2023 and any retired pilot who was on the United Pilot Seniority List during the Relevant Period, subject to the terms and limitations contained herein or as otherwise required by law. A “retired pilot” as used herein includes any Pilot who retired as a result of turning sixty-five (65) years of age (regardless of whether the pilot was in Active Service when they turned sixty-five (65)) or who retired after meeting the eligibility criteria for retiree benefit(s) as described in the Basic Agreement.

4. “Eligible Earnings” as used herein means the earnings of an Eligible Pilot during the Relevant Period while in Active Status (including, but not limited to, normal compensation paid in accordance with Section 3, used and forfeited vacation, sick leave, and training) or who are deemed to have earnings by operation of law. Eligible Earnings do not include 401(k) contributions, income received from Disability programs provided within the UPA, or payments made to a pilot under the terms of the Pilot-Voluntary Separation Leaves (“P-VSL”) offered in accordance with Letter of Agreement 20-03 “Pilot Voluntary Separation Leave” and Letter of Agreement 20-05 “Pandemic Recovery”.

B. A discharged pilot who has a grievance currently pending as of September 29, 2023 will receive the One-time Payment in addition to any backpay awarded by the Board if the Pilot is reinstated by an award of the United Airlines Pilots System Board of Adjustment.

C. The One-time Payment to Eligible Pilots will be computed as the sum of the following:

1. 4% of Eligible Earnings for bid year 2020;

2. 4% of Eligible Earnings for bid year 2021;

3. 14% of Eligible Earnings for bid year 2022; and

4. 14% of Eligible Earnings for the January 2023 through the September 2023 Bid Periods, inclusive.

5. The 2023 portion of the One-time Payment as calculated in accordance this paragraph shall be subject to a sixteen percent (16%) direct employer contribution and considered as compensation for the purpose of calculating any profit-sharing payment made in accordance with Section 3-H for the 2023 plan year, paid in 2024.

D. United will make the One-time Payment to all Eligible Pilots who qualify under this LOA, or who are entitled to such payments by operation of law, in two separate payments. Specifically, the portion of the One-time Payment attributable to Eligible Earnings in the 2020-2022 bid years will be paid no later than November 1, 2023 and the portion of the One-time Payment (including the direct employer contribution) attributable to the Eligible Earnings for the January 2023 through September 2023 Bid Periods shall be paid no later than December 1, 2023. If the Company is unable to make a payment to a Pilot on those dates due to unforeseen circumstances (e.g., the Pilot’s current address is unknown), United will make the payment(s) as soon thereafter as possible.

E. For an Eligible Pilot who died or dies prior to the final payment date, the One-time Payment (or any remaining portion thereof) will be paid to such Pilot’s estate.

F. Applicable federal, state, and local taxes as well as Association dues will be withheld from the One-time Payment.

G. The parties agree to meet and confer regarding any matters that arise regarding the payments or benefits to be paid pursuant to the terms of this LOA.

This Letter of Agreement shall become effective on September 29, 2023 and will remain in effect concurrent with Section 25, Duration of the Basic Agreement.

IN WITNESS WHEREOF, the parties hereto have signed this Agreement this 29th day of September, 2023.

FOR UNITED AIRLINES, INC. FOR THE AIR LINE PILOTS ASSOCIATION, INT’L

Z. Michael Jones, Vice President Captain Jason Ambrosi, President Labor Relations Air Line Pilots Association, Intl

Captain Marc Champion Captain Garth Thompson, Chair Vice President Flight Operations United Master Executive Council

Mike Hansen, Managing Director Captain Phil Otis, Chair LR & Labor Economics UAL MEC Negotiating Committee

Captain Mary Ann Schaffer, Captain Andy Riggs, Vice-Chair Managing Director Aviation Safety UAL MEC Negotiating Committee

Captain David Zullo, Director Captain Adrian Rivero, Member Pilot Contract Administration UAL MEC Negotiating Committee

Sarah Nau, Director Labor Relations