A.    Pilots who, while performing duties or while away from their domiciles in the service of the Company, are interned or are taken prisoner of war, are hijacked, held hostage, or become missing, unless caused by their own willful misconduct, shall retain their seniority and accrue longevity, and shall be provided the benefits set forth below. This Article shall not apply to pilots who are held or imprisoned as the result of criminal charges not related to the performance of their duties.


B.    A Pilot covered under Paragraph A., (above), shall be deemed to be in active service for pay and benefits. He shall be paid each bid period an amount equal to his average bid period compensation based upon his previous thirteen (13) consecutive bid periods, or his current bid period guarantee, whichever is greater. Payments shall continue until the earliest of thirty six (36) months, until the Pilot returns to the service of the Company, or until the Pilot’s death is legally established.


C.    The Bid Period compensation allowable under Paragraph B. of this Article to a Pilot, who is missing, shall be credited to such Pilot on the books of the Company and shall be disbursed by the Company in accordance with written direction from him. Each Pilot is required to execute and deliver to the Company a written direction in the form depicted below:


        To Emery Worldwide Airlines, Inc.         


        “You are hereby directed to pay all compensation allowable to me, and any other benefits stipulated in the Pilot’s Agreement, while missing, or resulting from death or any other condition which causes direct payment to me to be impossible, as provided under Article 17 of the Agreement between Emery Worldwide Airlines, Inc., and the Air Line Pilots in the service of Emery Worldwide Airlines, Inc., as represented by the Air line Pilots Association International to:


                                    (Name)                                    (Address)                                           

        as long as living, and thereafter to                                                                                 


                                                                              as long as living, and thereafter to



                                    (Name)                                    (Address)                                           

as long as living”.


        “The balance, if any, and any amounts accruing after death of all persons named in the above designations shall be held for me, or in the event of my death before receipt thereof, shall be paid to the legal representative of my estate.”

        “Any modifications to this agreement must be made on a copy of this form, however, if no copy is available due to reasons beyond the control of the Pilot, this agreement may be modified by a letter signed and dated by the Pilot. Any modification shall become effective upon receipt of the form or letter by the Company.”

        “Payments made by the Company pursuant to this direction shall fully release the Company from the obligation to make any further payment with respect to wages, benefits, or expenses for the time period covered in Article 17, Paragraph B., of the Agreement. This provision shall not be construed to reduce dependent insurance coverage and life insurance benefits”.


        (Pilot Signature)                                       (Witness Signature)


Date Signed:                                            Date Signed:                                      


D.    Any payments due to any Pilot under this Article in the event of his death, shall be paid to the legal representative of his estate.

E.    A Pilot covered under Paragraph A., (above), who returns to his domicile, shall be entitled to any position he would otherwise have been awarded and which his seniority entitles him, and to whatever training may be required to qualify or re-qualify for that position.


In the event the Company participates in CRAF operations, the flight and duty time limitations set forth in this Agreement and in the Federal Aviation Regulations applicable to non-CRAF flight operations shall continue to apply to all flights operated by Emery Worldwide Airlines Pilots’ unless modification of these limitations are specifically required by the Department of Defense and an appropriate waiver is issued by the FAA. Flight and duty time limitations, as set forth in this Agreement, shall be considered to be temporarily modified in accordance with the direction of the Department of Defense and FAA for the duration of the CRAF operation and for those flights contracted as a part of that operation.


1.     It is agreed and understood that the provisions of this Article shall be applicable only to the Company’s Civil Reserve Air Fleet (CRAF) activated operations which occur as a result of activation of Civil Reserve Air Fleet by appropriate governmental authority or operations conducted by the Company into or over hostile areas.

2.     It is agreed and understood that all provisions of this Agreement, amendments thereto and supplemental agreements, except those sections which are specifically modified or excepted by this Article, shall be applicable to the Company’s CRAF or hostile area operations.


3.     A hostile area, for the purposes of this Agreement, will include an area so designated by the Secretary of Defense or other appropriate governmental authority.

4.     Operations in a hostile area shall be from block-out of a flight which transits, overflys, or terminates in a hostile area until the return flight blocks-in from the hostile area.

5.     Emery Worldwide Airlines Pilots’ participation in CRAF or Hostile Area Operations shall be voluntary unless the Company would be unable to comply with the requirements of the Department of Defense for the operation with only voluntary crews.

6.     If there are not sufficient volunteer Emery Worldwide Airlines Pilots in their current status to operate CRAF activated flights into a declared hostile area, the Company retains the right to utilize any Emery Worldwide Airlines Pilots in accordance with the provisions of this Agreement.

7.     A Hostile Act is defined as any hostile detonation of any weapon of war, or any malicious act or act of sabotage, vandalism or other act intended to cause loss or damage, or any act or events caused by forces engaged in military operations which results in harm to Emery Worldwide Airlines aircraft or Pilots.

8.     If, as a result of any Hostile Act evolving from and relating to the situation which prompted the CRAF or hostile area operation while the Pilot is performing duty in such operation, the Pilot loses his life, the Company shall provide supplemental life insurance in the amount of five hundred thousand dollars ($500,000) to be paid to the Pilot’s named beneficiary in addition to that insurance provided for in Article 27.

9.     If, as a result of a Hostile Act as described in Paragraph G.7. (above), the Pilot becomes disabled, the Pilot shall suffer no loss of income for the term of disability, or for the period of ten (10) years, or age 65, whichever is earliest.  The Pilot shall receive sufficient compensation during this time period, such that, after adding Worker’s Compensation, Social Security, and any other remuneration received through government or Company programs, to sustain the Pilot’s pay period guarantee at the same level as the average of his preceding thirteen (13) bid periods.