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DEFINITIONS: Section 1. (a) The word "Agreement" when used in this Supplemental Agreement means the Agreement between COLONIAL AIRLINES, INC. and the Air Line Pilots in the service of COLONIAL AIRLINES, INC. as represented by the AIR LINE PILOTS ASSOCIATION, INTERNATIONAL, effective August 10, 1940, as supplemented and amended. (b) The word "Company" when used in this Supplemental Agreement means COLONIAL AIRLINES, INC. (c) The word "Association" when used in this Supplemental Agreement means the AIR LINE PILOTS ASSOCIATION, INTERNATIONAL. (d) The term "Bermuda Operations" for the purpose of this supplemental Agreement means the air line operation that the Company is conducting between the following points: New York ------------------- Bermuda Washington, D. C. ---------- Bermuda PAY FIRST PILOTS: Section 2. (a) First pilots when flying Douglas Sky-master C-54 equipment on the Company's Bermuda Operation shall be paid base pay, payable monthly at the following rates: First year --------------------- $ 953.00 per month Second year -------------------- 979.00 per month Third year -------------------- 1,005.00 per month Fourth year and thereafter ---- 1,060.00 per month (b) The computation of a first pilot's base pay shall be in accordance with the aggregate amount of time in the service of the Company on first pilot's pay status, and in addition, all co-pilot time spent in the service of the Company's in in excess of four years. (c) When a first pilot flying Douglas Skymaster C-54 equipment is reduced to co-pilot or any other lesser pilot Page Forty-four