{"id":40087,"date":"2015-09-17T11:25:58","date_gmt":"2015-09-17T16:25:58","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-legal\/contracts\/uncategorized\/long-term-incentive-performance-program-us-airways.html"},"modified":"2015-09-17T11:25:58","modified_gmt":"2015-09-17T16:25:58","slug":"long-term-incentive-performance-program-us-airways","status":"publish","type":"corporate_contracts","link":"https:\/\/corporate.findlaw.com\/contracts\/compensation\/long-term-incentive-performance-program-us-airways.html","title":{"rendered":"Long Term Incentive Performance Program – US Airways"},"content":{"rendered":"

US AIRWAYS GROUP, INC.
\n2011 Long Term Incentive Performance Program
\n(Established Effective January 19, 2011)<\/strong><\/p>\n

Section I. Purpose<\/strong><\/p>\n

The purpose of the US Airways Group, Inc. 2011 Long Term Incentive
\nPerformance Program (the “Program”) is to<\/p>\n\n\n\n
<\/strong><\/td>\n<\/td>\nFocus management efforts on the creation of long-term stockholder value,
\nand<\/em><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
<\/strong><\/td>\n<\/td>\nEncourage strategic decision-making by providing rewards for the
\nlong-term achievement of Company goals.<\/em><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

The Program sets forth the terms and conditions for cash Performance Grant
\nAwards to be paid to eligible officers under the US Airways Group, Inc. 2008
\nEquity Incentive Plan (the “Plan”).<\/p>\n

Section II. Eligibility Criteria<\/strong> Service Providers who are
\nofficers of US Airways Group, Inc. (the “Company”) or a Related Company (as that
\nterm is defined in the Plan) whose responsibilities have a direct and
\nsignificant impact on Company results are eligible to participate in the
\nProgram. The Compensation and Human Resources Committee of the Board of
\nDirectors of the Company (the “Committee”) will, at its sole discretion, select
\nindividual officers to participate in the Program (each a “Participant”).
\nParticipation in one Performance Cycle (as such term is defined in Section IV)
\nunder the Program does not assure participation in any other Performance Cycle.
\nA person who is hired by the Company (or a Related Company) as an eligible
\nofficer or promoted to eligible officer status (whether from a non-eligible
\nstatus or another eligible officer status), in either case after the
\ncommencement of a Performance Cycle (as such term is defined in Section IV)
\nshall participate in Performance Cycles on such basis, if any, as the Committee
\nmay provide.<\/p>\n

Section III. Award Levels<\/strong> Participants have the opportunity
\nto earn cash Awards under the Program based on the achievement of long-term
\nCompany performance and, with certain exceptions set forth in Section V,
\ncontinued active service with the Company (or a Related Company) in an eligible
\nposition through the date of payment of the cash Award. Threshold, target, and
\nmaximum Award levels are set forth below. All Award levels are expressed as a
\npercentage of a Participant153s base salary, as in effect on the date of payment
\nof the cash Award.<\/p>\n

\n

Award Levels Expressed as <\/strong>
\nPercentages of Base Salary<\/strong><\/p>\n\n\n\n\n\n\n\n\n\n
<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
Officer Level<\/strong><\/td>\n<\/td>\nThreshold<\/strong><\/td>\n<\/td>\n<\/td>\nTarget<\/strong><\/td>\n<\/td>\n<\/td>\nMaximum<\/strong><\/td>\n<\/td>\n<\/tr>\n
\n

CEO<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

38<\/p>\n<\/td>\n

\n

%<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

125<\/p>\n<\/td>\n

\n

%<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

200<\/p>\n<\/td>\n

\n

%<\/p>\n<\/td>\n<\/tr>\n

\n

President<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

35<\/p>\n<\/td>\n

\n

%<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

115<\/p>\n<\/td>\n

\n

%<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

200<\/p>\n<\/td>\n

\n

%<\/p>\n<\/td>\n<\/tr>\n

\n

EVP<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

30<\/p>\n<\/td>\n

\n

%<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

100<\/p>\n<\/td>\n

\n

%<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

175<\/p>\n<\/td>\n

\n

%<\/p>\n<\/td>\n<\/tr>\n

\n

SVP<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

21<\/p>\n<\/td>\n

\n

%<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

70<\/p>\n<\/td>\n

\n

%<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

140<\/p>\n<\/td>\n

\n

%<\/p>\n<\/td>\n<\/tr>\n

\n

VP<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

14<\/p>\n<\/td>\n

\n

%<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

45<\/p>\n<\/td>\n

\n

%<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

90<\/p>\n<\/td>\n

\n

%<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Performance below the threshold level for any Performance Cycle (as such term
\nis defined in Section IV) will result in no cash Award. The maximum Award for
\nany Performance Cycle is two times the target Award, subject to further
\nlimitations contained in the Plan.<\/p>\n

Section IV. Award Calculation<\/strong> Awards are calculated based on
\nTotal Stockholder Return (“TSR”) of the Company over the Performance Cycle (as
\nsuch term is defined in this section) relative to the TSRs of a pre-defined
\ncompetitive peer group. TSR, for purposes of this Program, is the rate of
\nreturn, including both the price appreciation of the Company153s Common Stock or a
\ncompetitive peer company153s common stock and the reinvestment of any dividends
\ndeclared on such common stock, over the relevant Performance Cycle. In order to
\nsmooth out market fluctuations, the average daily closing price (adjusted for
\nsplits and dividends) for the common stock of the Company and of the companies
\nin the pre-defined competitive peer group for the three months prior to the
\nfirst and last days of the Performance Cycle will be used to determine TSR.
\nDaily closing price of a share of common stock is the stock price at the close
\nof trading (4:00 p.m. Eastern Time) of the national exchange (New York Stock
\nExchange, the Nasdaq Stock Market or the American Stock Exchange) on which such
\nstock is traded.<\/p>\n\n\n\n
A)<\/strong><\/td>\n<\/td>\nPerformance Cycles<\/strong><\/u><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

A performance cycle, over which TSR is measured, is the three-year period
\nbeginning January 1 of a given year and ending December 31 of the second
\nfollowing year (each a “Performance Cycle”). The Committee, in its sole
\ndiscretion, may authorize Performance Cycles, and it is anticipated, although
\nnot assured, that a three-year Performance Cycle will begin each January 1. All
\nofficers of the Company (or a Related Company) otherwise eligible to participate
\nin the Program will be eligible to participate in the Performance Cycle
\ncommencing January 1, 2011, and ending December 31, 2013.<\/p>\n\n\n\n
B)<\/strong><\/td>\n<\/td>\nPeer Group and Award Payout Percentages<\/strong><\/u><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

The competitive peer group consists of the following eight companies: AirTran
\nHoldings, Inc., Alaska Air Group, Inc., AMR Corporation (the parent company of
\nAmerican Airlines), Delta Air Lines, Inc., Hawaiian Holdings, Inc. (the parent
\ncompany of Hawaiian Airlines), JetBlue Airways Corporation, Southwest Airlines
\nCo. and UAL Corporation (the parent company of United Airlines and Continental
\nAirlines). Such competitive peer group is subject to modification, in the
\nCommittee153s sole discretion, to take account of unforeseen events such as
\nmergers, dispositions, bankruptcies and other significant business changes.<\/p>\n

Page 2<\/p>\n

\n

Award payout percentages will be based on the TSR of the Company relative to
\nthe TSRs of competitive peer group companies, as follows:<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n
<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
Company TSR<\/strong><\/td>\n<\/td>\nPayout as a %<\/strong><\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
Relative Rank<\/strong><\/td>\n<\/td>\nof Base Salary<\/strong><\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
<\/td>\n<\/td>\nVP<\/strong><\/td>\n<\/td>\n<\/td>\nSVP<\/strong><\/td>\n<\/td>\n<\/td>\nEVP<\/strong><\/td>\n<\/td>\n<\/td>\nPresident<\/strong><\/td>\n<\/td>\n<\/td>\nCEO<\/strong><\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
1-2 of 9<\/em><\/td>\n<\/td>\n<\/td>\n90<\/em><\/td>\n%<\/em><\/td>\n<\/td>\n<\/td>\n140<\/em><\/td>\n%<\/em><\/td>\n<\/td>\n<\/td>\n175<\/em><\/td>\n%<\/em><\/td>\n<\/td>\n<\/td>\n200<\/em><\/td>\n%<\/em><\/td>\n<\/td>\n<\/td>\n200<\/em><\/td>\n%<\/em><\/td>\n<\/td>\n(Maximum)<\/em><\/td>\n<\/tr>\n
\n

3 of 9<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

75<\/p>\n<\/td>\n

\n

%<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

117<\/p>\n<\/td>\n

\n

%<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

150<\/p>\n<\/td>\n

\n

%<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

172<\/p>\n<\/td>\n

\n

%<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

175<\/p>\n<\/td>\n

\n

%<\/p>\n<\/td>\n

<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
\n

4 of 9<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

60<\/p>\n<\/td>\n

\n

%<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

93<\/p>\n<\/td>\n

\n

%<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

125<\/p>\n<\/td>\n

\n

%<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

143<\/p>\n<\/td>\n

\n

%<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

150<\/p>\n<\/td>\n

\n

%<\/p>\n<\/td>\n

<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
5 of 9<\/em><\/strong><\/td>\n<\/td>\n<\/td>\n45<\/em><\/strong><\/td>\n%<\/em><\/strong><\/td>\n<\/td>\n<\/td>\n70<\/em><\/strong><\/td>\n%<\/em><\/strong><\/td>\n<\/td>\n<\/td>\n100 <\/em><\/strong><\/td>\n%<\/em><\/strong><\/td>\n<\/td>\n<\/td>\n115<\/em><\/strong><\/td>\n%<\/em><\/strong><\/td>\n<\/td>\n<\/td>\n125<\/em><\/strong><\/td>\n%<\/em><\/strong><\/td>\n<\/td>\n(Target)<\/em><\/strong><\/td>\n<\/tr>\n
\n

6 of 9<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

29<\/p>\n<\/td>\n

\n

%<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

46<\/p>\n<\/td>\n

\n

%<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

65<\/p>\n<\/td>\n

\n

%<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

75<\/p>\n<\/td>\n

\n

%<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

81<\/p>\n<\/td>\n

\n

%<\/p>\n<\/td>\n

<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
7 of 9<\/em><\/td>\n<\/td>\n<\/td>\n14<\/em><\/td>\n%<\/em><\/td>\n<\/td>\n<\/td>\n21<\/em><\/td>\n%<\/em><\/td>\n<\/td>\n<\/td>\n30<\/em><\/td>\n%<\/em><\/td>\n<\/td>\n<\/td>\n35<\/em><\/td>\n%<\/em><\/td>\n<\/td>\n<\/td>\n38<\/em><\/td>\n%<\/em><\/td>\n<\/td>\n(Threshold)<\/em><\/td>\n<\/tr>\n
\n

8-9 of 9<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

0<\/p>\n<\/td>\n

\n

%<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

0<\/p>\n<\/td>\n

\n

%<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

0<\/p>\n<\/td>\n

\n

%<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

0<\/p>\n<\/td>\n

\n

%<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

0<\/p>\n<\/td>\n

\n

%<\/p>\n<\/td>\n

<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Section V. Award Payment Timing, Early Payment and Separation<\/strong><\/p>\n

If the TSR of the Company is at or above the threshold for a Performance
\nCycle, Awards will be paid in cash within sixty (60) days following the end of
\nthe Performance Cycle. For example, Awards for the Performance Cycle that runs
\nfrom January 1, 2011, through December 31, 2013 will be paid no later than March
\n1, 2014. To receive an Award, a Participant must be in continuous active
\nemployment with the Company (or a Related Company) through the date of payment
\nof the Award, unless otherwise prohibited by law. Payments will be subject to
\nall required federal, state, and local tax withholding. In the event a
\nParticipant separates from service with the Company (and all Related Companies)
\non account of retirement (as defined below), Disability (as defined in the Plan)
\nor death, the Company shall pay to the Participant (or the Participant153s estate
\nin the case of death), at the same time as Awards (if any) are paid to other
\nParticipants for the same Performance Cycle, the Award that the Participant
\nwould have earned and received (if any) with respect to solely the Performance
\nCycle that ends in the calendar year in which such separation from service
\noccurs, had the Participant153s service continued until the Award payment date for
\nsuch Performance Cycle. For purposes of the foregoing, “retirement” shall mean
\nthe Participant153s separation from service with the Company (and all Related
\nCompanies) after attainment of age fifty-five (55) and completion of ten (10)
\nyears of service with the Company (or any Related Company). Awards for any other
\nPerformance Cycles will not be earned or paid, unless otherwise required by law.\n<\/p>\n

Page 3<\/p>\n

\n

If the Participant separates from service with the Company (and all Related
\nCompanies) for any reason other than retirement, Disability or death (whether
\nsuch separation is voluntary or involuntary), no Awards will be earned or paid
\nunder the Program with respect to any Performance Cycles, unless otherwise
\nrequired by law.<\/p>\n

Section VI. Program Administration<\/strong> The Program will be
\nadministered by the Committee in accordance with the Plan and in a manner that
\nsatisfies the requirements of Section 162(m) of the Internal Revenue Code for
\nqualified “performance-based” compensation. Awards generally are calculated and
\ndistributed as provided in Sections IV and V; provided, however, <\/em>that
\nno Award payments will be made unless the Committee certifies in writing (a) the
\nrelative TSR ranking of the Company, (b) that all other material terms of the
\nProgram have been satisfied and (c) that payments to each Participant in stated
\namounts are appropriate under the Program.<\/p>\n

Section VII. Absence of Program Funding; No Equity Interest<\/strong>
\nBenefits under the Program shall be paid from the general funds of the Company
\n(or the Related Company), and a Participant (or the Participant153s estate in the
\nevent of death) shall be no more than an unsecured general creditor of the
\nCompany (or the Related Company) with no special or prior right to any assets of
\nthe Company (or the Related Company). Nothing contained in the Program shall be
\ndeemed to give any Participant any equity or other interest in the assets,
\nbusiness or affairs of the Company or any Related Company. It is not intended
\nthat a Participant153s interest in the Program shall constitute a security or
\nequity interest within the meaning of any state or federal securities laws.<\/p>\n

Section VIII. No Transferability<\/strong> A Participant shall not
\nhave any right to transfer, sell, alienate, assign, pledge, mortgage,
\ncollateralize or otherwise encumber any of the payments provided by this
\nProgram.<\/p>\n

Section IX. No Employment Rights<\/strong> This Program is not
\nintended to be a contract of employment. Both the Participant and the Company
\nand all Related Companies have the right to end their employment or other
\nservice relationship with or without cause or notice.<\/p>\n

Page 4<\/p>\n

\n

Section X. Interpretation, Amendment and Termination<\/strong><\/p>\n

The Committee shall have the power to interpret all provisions of the
\nProgram, which interpretations shall be final and binding on all persons. The
\nprovisions of this document shall supersede all provisions of any and all such
\nprior documents relating to the Program and its subject matter. However, if the
\nprovisions of this document conflict with any provision of the Plan, the
\nprovisions set forth in the Plan shall govern in all cases. The laws of the
\nState of Delaware shall govern all questions concerning the construction,
\nvalidity and interpretation of the Program, without regard to such state153s
\nconflict of laws rules. Notwithstanding anything herein to the contrary, if the
\nParticipant is a “specified employee” on the date of the Participant153s
\n“separation from service,” as defined in the Treasury Regulation Section
\n1.409A-1(h) (a “Separation from Service”), any benefit or payment that
\nconstitutes non-exempt “nonqualified deferred compensation” (within the meaning
\nof Section 409A of the Internal Revenue Code (“Section 409A”)) shall be delayed
\nin order to avoid a prohibited payment under Section 409A(a)(2)(B)(i), and any
\nsuch delayed payment shall be paid to the Participant in a lump sum during the
\nten (10) day period commencing on the earlier of (i) the expiration of the
\nsix-month period measured from the date of the Participant153s Separation from
\nService, or (ii) the Participant153s death. To the greatest extent permitted under
\nSection 409A, any separate payment or benefit under the Program will not be
\ndeemed to constitute “nonqualified deferred compensation” subject to Section
\n409A and the six-month delay requirement to the extent provided in the
\nexceptions in Treasury Regulation Section 1.409A-1(b)(4), Section 1.409A-1(b)(9)
\nor any other applicable exception or provision of Section 409A. The Committee
\nreserves the right to amend or terminate the Program at any time, with or
\nwithout prior notice; provided, however, <\/em>that all amendments to the
\nProgram shall preserve the qualification of Awards under the Program as
\n“performance-based” compensation under Section 162(m) of the Internal Revenue
\nCode. Notwithstanding the foregoing, (a) except as provided in Section IV with
\nrespect to the calculation of TSR and in the following clause (b), the Committee
\nmay not amend the Program in a way that would materially impair the rights of a
\nParticipant with respect to a Performance Cycle that already has begun at the
\ntime of such amendment, except to the extent necessary to preserve the
\nqualification of Awards as “performance-based” compensation under Section 162(m)
\nof the Internal Revenue Code or unless such Participant has consented in writing
\nto such amendment; and (b) in the event of any act of God, war, natural
\ndisaster, aircraft grounding, revocation of operating certificate, terrorism,
\nstrike, lockout, labor dispute, work stoppage, fire, epidemic or quarantine
\nrestriction, act of government, critical materials shortage, or any other act
\nbeyond the control of the Company, whether similar or dissimilar (each a “Force
\nMajeure Event”), which Force Majeure Event affects the Company or its Related
\nCompanies or other affiliates, the Committee, in its sole discretion, may (i)
\nterminate or (ii) suspend, delay, defer (for such period of time as the
\nCommittee may deem necessary), or substitute any Awards due currently or in the
\nfuture under the Program, including, but not limited to, any Awards that have
\naccrued to the benefit of Participants but have not yet been paid, subject to
\nSection 409A and the regulations and guidance promulgated thereunder.<\/p>\n

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