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 Summary of Remuneration and Benefits of Foreign Pilots

Item

Package I

Package II

Package III

Package IV

Package V

Options for taking leave

90 days annual leave

110 days annual leave

120 days annual leave

130 days annual leave

4+4 (one month on one month off)

Six weeks on three weeks off

2+2 (2 weeks on 2 weeks off)

Six weeks on two weeks off

9 consecutive days’ leave

10 consecutive days’ leave

11 consecutive days’ leave

3+3 (3 weeks on 3weeks off)

Leave description

Rest for not more than 14 days in the operating off-season month, for not more than 11 days in the operating on-season month (January, February, July, August) and for not more than 5 days in the simulator training month, and every leave interval is not less than seven days.

Work for a month and rest for a month with the 15th day of each month as the boundary

All the leaves shall be implemented after the foreign pilots commence flight and there is no leave after the foreign pilots report to the fleet flight period.

Base and permanent site

Guilin (base and permanent site), Guangzhou(permanent site)

Monthly salary

USD 21,000/Mon

USD 18,500/Mon

USD 17,500/Mon

USD 16,000/Mon

USD 13,500/Mon

Lodging allowance

USD 1,500/Mon

USD 1,500/Mon

USD 1,500/Mon

USD 1,500/Mon

USD 1,000/Mon

Meal allowance

RMB 5,000/Mon

RMB 5,000/Mon

RMB 5,000/Mon

RMB 5,000/Mon

RMB 3,000/Mon

Ground transportation allowance

RMB 3,000/Mon+

HSR ticket cost between Guilin and Guangzhou

RMB 3,000/Mon+

HSR ticket cost between Guilin and Guangzhou

RMB 3,000/Mon+

HSR ticket cost between Guilin and Guangzhou

RMB 3,000/Mon+

HSR ticket cost between Guilin and Guangzhou

RMB 3,000/Mon+

HSR ticket cost between Guilin and Guangzhou

Travel allowance

USD 12,000/year

USD 12,000/year

USD 12,000/year

USD 12,000/year

USD 12,000/year

Year-end bonus

USD 24,000/year

USD 24,000/year

USD 24,000/year

USD 24,000/year

USD 24,000/year

Annual benchmark flight hours

800hours/year

780hours/year

750hours/year

730hours/year

6500hours/year

Overtime fee(“X” refers to actual flying hours )

X≤650, No overtime fee

650<X≤750,USD 150/ Hour

750<X≤800, USD 200/ Hour

800<X≤850, USD 250/ Hour

850<X≤900, USD 280/ Hour

X>900, USD 300/ Hour

Sick leave

8 days

5 days

If the foreign pilots take the sick leave for more than paid sick leave, it is required to use vacation leave to offset paid sick leave.

Salary granting ratio during ground school training

As from the reporting date by foreign pilots and to the time of beginning flight in the flight fleet, salary shall be granted by 60% of the standard for monthly salary, unless this period is extended due to the foreign pilot’s own fault in which case the 60% salary policy remains effective. Form day 61 till the day before the pilot is assigned as a solo captain, salary shall be granted by 80% of the standard for monthly salary, and from the date the pilot is assigned as a solo captain, salary shall be granted by 100% of the standard for monthly salary.

Allowance for permanent site

Selecting Guilin as permanent site may enjoy USD 500/ Mon as permanent site subsidies.

Contract Renewal Award

USD 30,000, and upon expiration of the first three-year service period, each pilot may enjoy the loyalty rewards, and such award shall be granted when the foreign pilots sign the next three-year contract.

Health medical insurance

The cumulative maximum compensation on this policy amounted is RMB 12.8 million Yuan, including full amount of general outpatient fee, single room conditions on Mainland China, full amount of general out-patient fee, outpatient psychiatric treatment, dental, physical examination, vision screening, covering the worldwide scope except the United States (emergency medical excluded). Pilots and their spouses, children may be insured (64 years old or below), and the premium of families shall be deducted from the pilots’ salary.

Loss of license insurance

Begin to make a claim if temporary flight stoppage lasts for 3 days or more, compensation shall be made by RMB 800 Yuan / day, and in the case of permanently flight stoppage, compensation shall be made in the lump-sum basis with RMB 1.3 million Yuan (for pilots aged at 45 years or below), or RMB 1.5 million Yuan (for pilots aged more than 45 years).

Employer liability insurance

Refer to Airlines benefit policy

Children education allowance

Children of foreign pilots shall attend Guangzhou XXX International School, and Party A shall bear 30% of total tuition of their children (up to two).

Where foreign pilots select the remaining education institution beyond Guangzhou (only limited to Mainland China), provide each pilot with the monthly subsidies of USD 1,000. Only the foreign pilots who select Package I, Package II, Package III, and Package IV can enjoy such Allowance.

Leave indemnification standard

Leave indemnification standard for A320 type rating: $ 850 / day

Employee benefit air ticket

As for a quarter of discount tickets not booked in domestic route flew by Party A and Hainan Airlines route network, foreign pilots and their immediate family members in the Party A’s personnel system may enjoy a quarter of discounted air tickets of Party A not booked in China.