Document:

Exhibit 10.2

 EXHIBIT 10.2 
  
 US AIRWAYS UNFUNDED 
 EXECUTIVE DEFINED CONTRIBUTION PLAN 
  
 This Plan is established as of the 16th day of October, 2003, by US AIRWAYS, INC., a Delaware corporation, as an unfunded nonqualified deferred compensation plan that benefits a select group of management or
highly compensated employees. 
  
 WHEREAS, it is in the
best interests of the Company to employ and retain competent and loyal management personnel; and 
  
 WHEREAS, certain executives of the Company have previously participated in and been provided supplemental executive retirement arrangements with
the Company, as evidenced by the Prior SERPs; and 
  
 WHEREAS, the Company desires to reward its executives for their services, to encourage the continued employment of the executives with the Company and to promote the executives’ devotion to duties on behalf of the Company by
providing a supplemental executive retirement benefit; and 
  
 WHEREAS, as part of the recent First Amended Joint Plan of Reorganization of US Airways Group, Inc. and its Affiliated Debtors and Debtors-in-Possession, dated January 17, 2003 (the “Reorg Plan”), the Company has agreed to
continue to provide the supplemental executive retirement arrangements outlined in the Prior SERPs, modified as outlined in the Reorg Plan; and 
  
 WHEREAS, in order to effectuate the modifications outlined in the Reorg Plan, the Company and the executives have agreed to amend and restate the
Prior SERPs, a portion of which shall be provided under this Plan, and therefore, this document (together with the US Airways Funded Executive Defined Contribution Plan and the relevant Participation Agreements) shall be considered an amendment and
restatement of the Prior SERPs; 
  
 WHEREAS, as part of
this amendment and restatement, and as provided under the Reorg Plan, the supplemental executive retirement arrangements shall be converted from their prior defined benefit format into a defined contribution format; and 
  
 WHEREAS, the Company wishes to use this amended and restated Unfunded
Executive Defined Contribution Plan to provide supplemental retirement benefits to certain executives listed on Exhibit A who do not currently have Prior SERPs; 

 NOW, THEREFORE, the Company hereby enters into this Unfunded Executive Defined Contribution Plan,
as follows: 
  
 ARTICLE I 
  
 DEFINITIONS AND USAGE 
  
 Definitions. Wherever used in this Plan, the following words and
phrases shall have the meanings set forth below, unless the context plainly requires a different meaning: 
  
 1.1 “Account” shall mean the amount of money or other property evidenced by the last balance posted in accordance with the terms of this
Plan to the bookkeeping account record established for a Participant under this Plan. 
  
 1.2 “Administrator” shall mean the Company, acting through the Human Resources Committee, or other person or persons designated by the Human Resources Committee. 
  
 1.3 “Allocation” shall mean any amounts credited by the
Company to a Participant’s Account pursuant to this Plan, as determined pursuant to Section 4.1(a) and (b). 
  
 1.4 “Board” shall mean the Board of Directors of the Company. 
  
 1.5 “Change in Control” shall mean, with respect to a Participant, the definition of Change in Control
specified in any Severance Agreement or Employment Agreement or other employment contract that exists between such Participant and the Company, or if no such contract with a definition of “Change in Control” exists: 
  
 (a) The acquisition by an individual, entity or group
(within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 30% or more of
either (i) the then outstanding shares of common stock of the Company’s parent, US Airways Group, Inc. (“Group”) (the “Outstanding Group Common Stock”) or (ii) the combined voting power of the then outstanding voting
securities of Group entitled to vote generally in the election of directors (the “Outstanding Group Voting Securities”); provided, however, that the following acquisitions shall not constitute a Change in Control: (v) any acquisition
directly from Group, (w) any acquisition by Group or any of its subsidiaries, (x) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by Group or any of its subsidiaries, (y) any acquisition by any corporation
with respect to which, following such acquisition, more than 85% of, respectively, the then outstanding shares of common stock of such corporation and the combined voting power of the then outstanding voting securities of such corporation entitled
to vote generally in the election of directors, is then beneficially owned, directly or indirectly, by all or substantially all of the individuals and entities who were beneficial owners, respectively, of the Outstanding Group Common Stock and the
Outstanding Group Voting Securities in substantially the same proportions as their ownership, immediately prior to such acquisition, of the Outstanding Group Common Stock and the Outstanding Group Voting Securities, as the case may be or (z) any
acquisition by an individual, entity or group that, pursuant to Rule 13d-1 promulgated under the Exchange Act, is permitted to, and actually does, report its beneficial ownership of Outstanding Group Common Stock and Outstanding Group 
  

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 Voting Securities on Schedule 13G (or any successor Schedule); provided further, that if any such
individual, entity or group subsequently becomes required to or does report its ownership of Outstanding Group Common Stock and Outstanding Group Voting Securities on Schedule 13D (or any successor Schedule) then, for purposes of this Section
1.4(a), such individual, entity or group shall be deemed to have first acquired, on the first date on which such individual, entity or group becomes required to or does so file, beneficial ownership of all of the Outstanding Group Common Stock and
Outstanding Group Voting Securities beneficially owned by it on such date; or 
  
 (b) Individuals who, as of the date hereof, constitute the Group’s Board of Directors (the “Incumbent Board”) cease for any reason to constitute at least a majority of the Group Board of Directors;
provided, however, that any individual becoming a director subsequent to the date hereof whose election, or nomination for election by Group’s shareholders, was approved by a vote of at least a majority of the directors then comprising the
Incumbent Board shall be considered as though such individual were a member of the Incumbent Board, but excluding, for this purpose, any such individual whose initial assumption of office occurs as a result of either an actual or threatened election
contest (as such terms are used in Rule 14a-11 of Regulation 14A promulgated under the Exchange Act) or other actual or threatened solicitation of proxies or contests; or 
  
 (c) There is consummated a reorganization, merger or consolidation, in each case, with respect to which all
or substantially all of the individuals and entities who were the beneficial owners, respectively, of the Outstanding Group Common Stock and Outstanding Group Voting Securities immediately prior to such reorganization, merger or consolidation,
beneficially own, directly or indirectly, less than 85% of, respectively, the then outstanding shares of common stock and the combined voting power of the then outstanding voting securities entitled to vote generally in the election of directors, as
the case may be, of the corporation resulting from such reorganization, merger or consolidation (or any parent thereof) in substantially the same proportions as their ownership, immediately prior to such reorganization, merger or consolidation of
the Outstanding Group Common Stock and the Outstanding Group Voting Securities, as the case may be; or 
  
 (d) Approval by the shareholders of Group of a complete liquidation or dissolution of Group or the consummation of the sale or other
disposition of all or substantially all of the assets of Group, other than to a corporation with respect to which, following such sale or other disposition, more than 85% of, respectively, the then outstanding shares of common stock of such
corporation and the combined voting power of the then outstanding voting securities of such corporation entitled to vote generally in the election of directors is then beneficially owned, directly or indirectly, by all or substantially all of the
individuals and entities who were the beneficial owners, respectively, of the Outstanding Group Common Stock and the Outstanding Group Voting Securities immediately prior to such sale or other disposition in substantially the same proportion as
their ownership, immediately prior to such sale or other disposition, of the Outstanding Group Common Stock and Outstanding Group Voting Securities, as the case may be. 
  

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 Notwithstanding the foregoing, no “Change of Control” or “Change in Control” shall be
deemed to have occurred in connection with transactions under the Retirement Systems of Alabama investment agreement dated September 26, 2002, as amended, or in connection with the Company’s emergence from bankruptcy. 
  
 1.6 “Change in Control Allocation” shall mean an amount
equal to the Scheduled Allocations that the Company would have had to make for the number of years (including partial years) set forth in the next sentence, which immediately follow the termination of a Participant on or following the occurrence of
a Change in Control. The number of years referred to in the previous sentence shall be equal to the number of years for which the Company is required to continue to provide benefits to such Participant following the termination of such Participant
after a Change in Control for reasons other than Cause, Disability or death or for Good Reason (each such term being used as defined in the relevant Severance Agreement, Employment Agreement, or other employment contract) pursuant to the Severance
Agreement, Employment Agreement or other employment contract that exists between such Participant and the Company, as amended or modified from time to time. 
  
 1.7 “Code” shall mean the Internal Revenue Code of 1986, as amended from time to time. Any reference to a particular Code section shall
include any provision which modifies, replaces or supersedes it. 
  
 1.8 “Company” shall mean US Airways, Inc., a Delaware corporation, and shall include any successor to its business and/or assets which assumes and agrees to perform this Plan by operation of law or otherwise. 
  
 1.9 “Determination Date” shall mean December 31, 2002, and
each subsequent December 31. Notwithstanding the foregoing, with respect to a newly hired Participant who is hired in a month other than December, the first Determination Date shall be the first day of the month immediately succeeding the date of
hire of such Participant, and the subsequent Determination Dates will occur on each subsequent December 31. 
  
 1.10 “Earnings” with respect to a Participant for any calendar year, shall mean, with respect to the time period beginning on January 1,
2003, the amount of Earnings projected by the actuary for each year, including (i) the Participant’s annual rate of base salary for such year (reduced by the amount of any base salary reduction imposed in connection with the Company’s
emergence from bankruptcy proceedings, but including any amount of base salary that would have been paid to the Participant but for the 5% salary deferral program implemented by the Company in connection with similar deferrals implemented with
respect to Company pilots under the War Contingency provision of LOA 84), and (ii) the Participant’s target bonus under the Company’s Incentive Compensation Plan (or any successor plan) with respect to such year. 
  
 1.11 “Effective Date” shall mean October 16, 2003.

  
 1.12 “ERISA” shall mean the Employee
Retirement Income Security Act of 1974, as amended from time to time. Any reference to a particular ERISA section shall include any provision which modifies, replaces, or supersedes it. 
  

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 1.13 “Final Average Earnings” shall mean the sum of the Participant’s highest total
Earnings during any 36 consecutive months occurring during the 120 months immediately prior to the Participant’s Normal Retirement Date, divided by three (3). 
  
 1.14 “Human Resources Committee” shall mean the Human Resources Committee of the Board. 
  
 1.15 “Normal Retirement Age” shall mean age sixty-two (62).

  
 1.16 “Normal Retirement Date” shall mean the
first day of the month immediately following or coincident with the date on which the Participant attains Normal Retirement Age. 
  
 1.17 “Participant” shall mean any person who has an Account under the Plan. 
  
 1.18 “Participation Agreement” shall mean a written agreement, executed and dated by the Company and a
Participant, evidencing a Participant’s participation in this Plan, and setting forth the schedule of Allocations and the actuarial assumptions used to determine such Participant’s benefits hereunder. 
  
 1.19 “Plan” shall mean this US Airways Unfunded Executive
Defined Contribution Plan, as set forth herein and as amended from time to time. 
  
 1.20 “Prior SERPs” shall mean all individual supplemental executive retirement agreements entered into by the Company and the Participants before the Effective Date. 
  
 1.21 “Retirement Benefit” shall mean the lump sum benefit
payable under this Plan, as determined under Article III. 
  
 1.22
“Scheduled Allocation” shall have the meaning given in Section 4.1 hereof. 
  
 1.23 “Years of Actual Service” shall mean, as of any Determination Date, the Participant’s total number of years of active employment with the Company during which substantial services were
rendered as an employee (including employment before the Effective Date). Years of Actual Service shall be measured from the Participant’s date of hire. Participants will be credited with Years of Service in units of 1/12th of a year. 
  
 1.24 “Years of Credited Service” shall mean the total number of years of service which are credited to a Participant for purposes of this
Plan at any given date pursuant to the Participation Agreement entered into between the Participant and the Company. 
  
 ARTICLE II 
  
 PARTICIPATION 
  
 Section 2.1 Commencement of
Participation. As of the Effective Date, the individuals listed on Exhibit A shall be Participants in the Plan. The Administrator may, at any time and from time to time, designate key management or highly compensated employees to become eligible
for the Plan, and shall specify an effective date for each such Participant’s participation. Only individuals who are employees of the Company may participate in the Plan. 
  

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 Section 2.2 Cessation of Participation. In the event a Participant’s entire Account is
forfeited or distributed pursuant to the terms of the Plan, such Participant will no longer be a Participant in the Plan. 
  
 ARTICLE III 
  
 RETIREMENT BENEFIT 
  
 Section 3.1 Amendment and Restatement of Prior SERP Retirement Benefit. As of the Effective Date, as provided in the Reorg Plan, any benefit that had accrued for a Participant under all Prior SERPs shall be
amended and restated as the benefit provided by this Plan (and by the US Airways Funded Executive Defined Contribution Plan). Upon the Effective Date of this Plan, no Participant shall have a current or future claim for benefits, payments or other
rights or claims under any Prior SERP. 
  
 Section 3.2 Amount
of Retirement Benefit. Each Participant shall be entitled to receive a lump sum benefit equal to the actual value of his or her Account balance under this Plan (determined as of the end of the calendar month in which the Participant terminates
employment). 
  
 ARTICLE IV 
  
 ALLOCATIONS AND VESTING 
  
 Section 4.1 Allocations. 
  
 (a) Scheduled Allocations. The Company shall provide
a schedule specifying the amount of Allocation (“Scheduled Allocation”) to be made by each Determination Date to the account of each Participant who is employed by the Company on such Determination Date in such Participant’s
Participation Agreement. 
  
 (b) Change in
Control Allocations. Upon the termination of the Participant on or after the occurrence of a Change in Control, for the year in which such termination occurs the Company will make an additional allocation in an amount equal to the Change in
Control Allocation, provided however, that the calculation of the Change in Control Allocation will not be subject to any maximum annual limits that may be applicable to the calculation of the Scheduled Allocation for such year. 

 
 (c) Disability, etc. If a Participant receives
either short-term or long-term disability benefits under any Company plan, then, during the period of payment of such disability benefits, such Participant shall be treated as employed for all purposes of the Plan, including, without limitation,
attainment of age and service. The employment of the Participant will be considered terminated hereunder on the earlier of the Normal Retirement Date or the date on which such disability benefits cease (unless normal employment re-commences on such
date). In addition, if a Participant is absent from 
  

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 work pursuant to the birth of a child, pregnancy, adoption, or caring of a child for a period following
the birth or adoption (or placement for adoption) of such child, for the period beginning on the first date of such absence and ending on the first anniversary of the first date of absence, the Participant shall be treated as employed for all
purposes of the Plan, including, without limitation, attainment of age and service. 
  
 (d) Timing of Allocations. Allocations shall be made to the Participants’ Accounts in the form of a bookkeeping entry monthly
according to determinations to be made on the bases outlined in Section 4.1(a) and (b) above, the Participation Agreement, and the administrative provisions of Article VII. 
  
 (e) Interest on Allocations. The Company shall credit the Participant’s Account with an interest
on each Allocation at a rate of 8% per annum during the time period beginning on the date of such Allocation and ending on the Participant’s Normal Retirement Date. Such interest shall be credited to the Participant’s Account on an annual
basis, with an additional amount being credited on the Participant’s date of termination of employment or the Normal Retirement Date to account for the portion of the interest payable for the year during which such termination of employment or
the Normal Retirement Date occurs. 
  
 Section 4.2 Vesting.
A Participant shall at all times be 100% vested in his or her Account balance under this Plan. 
  
 ARTICLE V 
  
 PAYMENT OF
BENEFITS 
  
 Section 5.1 Form of Payment. All benefits
payable under this Plan shall be in the form of a lump-sum cash payment. 
  
 Section 5.2 Time of Payment of Retirement Benefit. The payment of a Participant’s Retirement Benefit shall only be made after the end of the calendar month in which the Participant terminates employment;
provided, however, that if the Participant terminates employment prior to the Participant’s attainment of Normal Retirement Age, such payment will be made consistent with the provisions for payment prior to Normal Retirement Age under
the Nonqualified Plan for Pilots of US Airways, Inc. As soon as practicable following the Participant’s termination of employment, the Company shall distribute the Participant’s Account balance to the Participant. Payment will be made from
the Company’s general assets. 
  
 Section 5.3 Termination
by Reason of Death. If a Participant dies prior to receiving payment of his or her Retirement Benefit, payment shall be made to the beneficiary or beneficiaries designated by the Participant by written instruction delivered to the Administrator
during the Participant’s lifetime. A Participant may designate one or more primary and contingent beneficiaries to receive his or her Retirement Benefit, and may designate the proportions in which such beneficiaries are to receive such
payments. The Participant may change such designations from time to time, and the last written designation filed with the Administrator prior to the Participant’s death shall control. If a Participant fails to specifically designate a
beneficiary, or if no designated beneficiary survives the Participant, payment shall be made by the Administrator in the following order of priority: 
  
 (a) to the Participant’s surviving spouse; or 
  

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 (b) in the event there is no surviving spouse, to the Participant’s children (per
stirpes), if any; or 
  
 (c) to the
Participant’s estate. 
  
 ARTICLE VI 
  
 FUNDING 
  
 Section 6.1 Unfunded Status. Notwithstanding anything in the Plan to the contrary, all amounts credited to a
Participant’s Account, all property and rights to property (including rights as a beneficiary of a contract providing life insurance protection) purchased with such amounts, and all income attributable to such amounts, property or rights, shall
remain (until made available to a Participant) solely the property and rights of the Company (without being restricted to the provision of benefits under the Plan), subject to the claims of the Company’s general creditors. 
  
 ARTICLE VII 
  
 ADMINISTRATION 
  
 Section 7.1 General. Except as otherwise specifically provided in the
Plan, the Administrator shall be responsible for administration of the Plan. 
  
 Section 7.2 Administrative Rules. The Administrator may adopt such rules of procedure as it deems desirable for the conduct of its affairs, except to the extent that such rules conflict with the provisions of
the Plan. 
  
 Section 7.3 Duties. The Administrator shall
have the following rights, powers and duties: 
  
 (a) The decision of the Administrator in matters within its jurisdiction shall be final, binding and conclusive upon the Company and upon any person affected by such decision. 
  
 (b) The Administrator shall have the sole discretion and authority to interpret and construe the provisions
of the Plan, to determine the appropriate amount and timing of any Retirement Benefit, to correct any defect, supply any omission and reconcile any inconsistency that may appear in the Plan, to decide any question which may arise regarding the
rights of the Participants hereunder and to exercise such powers as the Administrator may deem necessary for the administration of the Plan. 
  

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 (c) The Administrator shall maintain full and complete records of its decisions. Its
records shall contain all relevant data pertaining to each Participant and the Participants’ rights and duties under the Plan. 
  
 Section 7.4 Fees. No fee or compensation shall be paid to any person for services as the Administrator. 
  
 Section 7.5 Indemnification. The Company shall indemnify each member
of the Administrator, and each employee who assists the Administrator in connection with his employment duties against any liability or loss sustained by reason of any act or failure to act made in good faith, including, but not limited to, those in
reliance on certificates, reports, tables, opinions or other communications from any company or agents chosen by the Administrator in good faith. Such indemnification shall include attorneys’ fees and other costs and expenses reasonably
incurred in defense of any action brought by reason of any such act or failure to act. 
  
 ARTICLE VIII 
  
 CLAIMS
PROCEDURE 
  
 Section 8.1 General. Any claim for a
Retirement Benefit under the Plan shall be filed by the Participant or his or her beneficiary (either of which is referred to in this Article as the “claimant”) in the manner prescribed by the Administrator. 
  
 Section 8.2 Denials. If a claim for a Retirement Benefit under the
Plan is wholly or partially denied, notice of the decision shall be furnished to the claimant by the Administrator within a reasonable period of time, but not more than 90 days, after receipt of the claim by the Administrator. If special
circumstances require an extension of time for processing the claim, the Administrator shall furnish written notice (that states the circumstances requiring an extension and the date by which the Administrator expects to render a benefit
determination) of the extension to the claimant prior to the termination of the initial 90-day period, and such extension shall not exceed one additional consecutive 90-day period. 
  
 Section 8.3 Notice. Any claimant who is denied a claim for Retirement Benefits shall be furnished written or
electronic notice setting forth: 
  
 (a) the
specific reason or reasons for the denial; 
  
 (b) specific reference to the pertinent provision of the Plan upon which the denial is based; 
  
 (c) a description of any additional material or information necessary for the claimant to perfect the claim and an explanation of why such
material or information is necessary; and 
  
 (d)
an explanation of the claims review procedure under the Plan and the time limits applicable to such procedures, including a statement of a claimant’s right to bring a civil action under Section 502 of ERISA following an adverse benefit
determination upon review. 
  

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 Section 8.4 Appeals Procedure. In order that a claimant may appeal a denial of a claim, the
claimant or the claimant’s duly authorized representative may: 
  
 (a) request a review by written application to the Administrator, no later than sixty (60) days after receipt by the claimant of written notification of denial of a claim; 
  
 (b) review pertinent documents; and 
  
 (c) submit issues and comments, documents, records and other
information in writing. 
  
 The claimant will be provided, upon
request and free of charge, reasonable access to, and copies of, all documents, records and other information relevant to the claimant’s claim for benefits (as determined under applicable regulations), including information generated by but not
ultimately relied on by the Plan in considering the claim, and the documents demonstrating the Plan’s process for ensuring proper, consistent decisions to a claimant’s denied benefits. 
  
 Section 8.5 Review. The review will take into account all information
submitted by the claimant regardless of whether it was submitted with or considered in the original claim determination. A decision on review of a denied claim shall be made by the Administrator not later than sixty (60) days after receipt of a
request for review, unless special circumstances require an extension of time for processing, in which case a decision shall be rendered within a reasonable period of time, but not later than one hundred twenty (120) days after receipt of a request
for a review. The decision on review shall be in writing and shall include the specific reason(s) for the decision and the specific references(s) to the pertinent provisions of the Plan on which the decision is based, a statement that the claimant
is entitled to receive, upon request and free of charge, reasonable access to, and copies of, all documents, records and other information relevant to the claimant’s claim for benefits (as determined under applicable regulations), a statement
describing any voluntary appeal procedures offered by the Plan and the claimant’s right to obtain information about such procedure, and a statement of the claimant’s right to bring an action under Section 502(a) of ERISA. 
  
 Section 8.6 Arbitration. Any further dispute or controversy arising
under or in connection with this Plan which is not resolved by agreement shall be resolved by binding arbitration pursuant to the Federal Arbitration Act in accordance with the Employment Dispute Resolution Rules then in effect with the American
Arbitration Association. The arbitration proceeding shall be conducted in the state of Virginia. This agreement to arbitrate shall be enforceable in either federal or state court. 
  
 The enforcement of this agreement to arbitrate and all procedural aspects of this agreement to arbitrate shall be governed
by and construed pursuant to the Federal Arbitration Act and shall be decided by the arbitrators. In deciding the substance of any such claims, the arbitrator(s) shall apply the substantive laws of the State of Delaware (excluding Delaware
choice-of-law principles that might call for the application of some other state’s law). Judgment upon any award rendered in any such arbitration proceeding may be entered by any federal or state court having jurisdiction. 
  

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 ARTICLE IX 
  
 MISCELLANEOUS PROVISIONS 
  
 Section 9.1 Amendment and Termination. The Company expects the Plan to be continued indefinitely, but it reserves the right to amend or terminate
the Plan, or to cease further accruals under the Plan, at any time by action of its Human Resources Committee; provided, that no such amendment, termination or cessation shall reduce the then-existing Account of any Participant. 
  
 Section 9.2 No Assignment. No Participant shall have the power to
pledge, transfer, assign, anticipate, mortgage or otherwise encumber or dispose of in advance any interest in amounts payable hereunder, nor shall any interest in amounts payable hereunder be subject to seizure for payments of any debts or judgments
(except as required by law). 
  
 Section 9.3 Successors and
Assigns. The provisions of the Plan are binding upon and inure to the benefit of the Company, its successors and assigns, and the Participants, the Participants’ beneficiaries, heirs and legal representatives. 
  
 Section 9.4 Governing Law. The Plan shall be subject to and construed
in accordance with the laws of the State of Delaware. 
  
 Section
9.5 No Guarantee of Employment. Nothing contained in the Plan shall be construed as a contract of employment or deemed to give a Participant the right to be retained in the employ of the Company or any equity or other interest in the assets,
business or affairs of the Company. 
  
 Section 9.6
Severability. If any provision of the Plan shall be held illegal or invalid for any reason, such illegality or invalidity shall not affect the remaining provisions of the Plan, but the Plan shall be construed and enforced as if such illegal
or invalid provision had never been included herein. 
  
 Section
9.7 Notification of Addresses. Each Participant and beneficiary shall file with the Administrator, from time to time, in writing, the address of the Participant, and the address of each designated beneficiary, and any change of address. Any
communication, statement or notice addressed to the last address filed with the Administrator (or if no such address was filed with the Administrator, then to the last address of the Participant or beneficiary as shown on the Company’s records)
shall be binding on the Participant and each beneficiary for all purposes of the Plan and neither the Administrator nor the Company shall be obliged to search for or ascertain the whereabouts of the Participant or beneficiary. 
  
 Section 9.8 Other Plans. Payments made to Participants under this Plan
shall not be includable as salary or compensation for purposes of determining the amount of employee benefits under any other retirement, pension, profit-sharing or welfare benefit plans of the Company. 
  
 Section 9.9 Bonding. The Administrator and all agents and advisors
employed by it shall not be required to be bonded, except as may otherwise be required by ERISA. 
  

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 IN WITNESS WHEREOF, the Company has caused the Plan to be executed by its duly authorized officers on the
day and year first above written. 
  

			
	US AIRWAYS, INC.
		
	 By:
	 	 /s/ Jerrold A. Glass

	 Title:
	 	 Senior Vice President – Employee Relations

  

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 EXHIBIT A 
  

PARTICIPANTS AS OF EFFECTIVE DATE 
  
 Participants with  
 Prior
SERPs 
  
 N. Bruce Ashby 
 B. Ben Baldanza 
 Jerrold A. Glass 
 Neal S. Cohen 
 Alan W. Crellin 
 John Prestifilippo 
 Elizabeth Lanier 
  
 Participants who do  
 not have Prior  
 SERPs 
  
 P. Douglas McKeen 
 David Davis 
 Christopher ChiamesExhibit 10.5

 Exhibit 10.5 
  
 EMPLOYMENT AGREEMENT 
  
 Agreement dated as of March 1, 2003, between US Airways, Inc., a Delaware corporation, having a place of business at Crystal Park Four, 2345 Crystal
Drive, Arlington, Virginia 22227 (the “Company”) and Elizabeth K. Lanier, residing at 3668 Grandin Road, Cincinnati, Ohio 45226 (the “Executive”). 
  
 W I T N E S S E T H 
  
 WHEREAS, the Executive has assumed duties as of March 1, 2003 of a
responsible nature to the benefit of the Company and to the satisfaction of its Board of Directors (the “Board”); 
  
 WHEREAS, the Executive has been elected to serve as Executive Vice President of the Company as of March 1, 2003 and as Executive Vice President
– Corporate Affairs and General Counsel upon the occurrence of the “Effective Date” of the Company’s First Amended Joint Plan of Reorganization (the “Plan”) without further action by the Company or the Board;

  
 WHEREAS, the Board believes it to be in the best
interests of the Company to enter into this Agreement, which is consistent with and in furtherance of the Plan (including Exhibit A and Exhibit E-3 of the Plan), to assure Executive’s continuing services to the Company including, but not
limited to, under circumstances in which there is a possible, threatened or actual Change of Control (as defined below) of the Company; and 

 WHEREAS, the Board believes it is imperative to diminish the inevitable distraction of the
Executive by virtue of the personal uncertainties and risks created by a pending or threatened Change of Control and to encourage the Executive’s full attention and dedication to the Company currently and in the event of any threatened or
pending Change of Control, and to provide the Executive with compensation and benefits arrangements upon a Change of Control which ensure that the compensation and benefits expectations of the Executive will be satisfied and which are competitive
with those of other corporations. Therefore, in order to accomplish all the above objectives, the Board has caused the Company to enter into this Agreement. 
  
 NOW, THEREFORE, in consideration of the mutual promises herein contained, the Company and the Executive hereby agree as follows: 
  
 1. Certain Definitions. 
  
 (a) The “Effective Date” shall mean the date hereof. 
  
 (b) The “Change of Control Date” shall mean the first date during
the Employment Period (as defined in Section 1(c)) on which a Change of Control (as defined in Section 2) occurs. Anything in this Agreement to the contrary notwithstanding, if a Change of Control occurs and if the Executive’s employment with
the Company is terminated or the Executive ceases to be an officer of the Company prior to the date on which the Change of Control occurs, and if it is reasonably demonstrated by the Executive that such termination of employment or cessation of
status as an officer (i) was at the request of a third party who has taken steps reasonably calculated to effect the Change of Control or (ii) otherwise arose in connection with or anticipation of the Change 
  

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 of Control, then for all purposes of this Agreement the “Change of Control Date” shall mean the date
immediately prior to the date of such termination of employment or cessation of status as an officer. 
  
 (c) The “Employment Period” shall mean the period commencing on the Effective Date and ending on the earlier to occur of (i) the third
anniversary of such date or (ii) the first day of the month next following the Executive’s 65th birthday
(“Normal Retirement Date”); provided, however, that commencing on the date one year after the Effective Date, and on each annual anniversary of such date (such date and each annual anniversary thereof shall be hereinafter referred to as
the “Renewal Date”), the Employment Period shall be automatically extended so as to terminate on the earlier of (x) three years from such Renewal Date or (y) the Executive’s Normal Retirement Date, unless at least 30 days prior to the
Renewal Date the Company shall give notice to the Executive that the Employment Period shall not be so extended; and provided, further, that upon the occurrence of a Change of Control Date, the Employment Period shall automatically be extended so as
to terminate on the earlier to occur of (1) the third anniversary of such date or (2) the Executive’s Normal Retirement Date. 
  
 2. Change of Control. For the purpose of this Agreement, a “Change of Control” shall mean: 
  
 (a) The acquisition by an individual, entity or group (within the meaning of
Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 30% or more of either (i) the then
outstanding 
  

 3 

 shares of common stock of the Company’s parent, US Airways Group, Inc. (“Group”) (the “Outstanding
Group Common Stock”) or (ii) the combined voting power of the then outstanding voting securities of Group entitled to vote generally in the election of directors (the “Outstanding Group Voting Securities”); provided, however, that the
following acquisitions shall not constitute a Change of Control: (v) any acquisition directly from Group, (w) any acquisition by Group or any of its subsidiaries, (x) any acquisition by any employee benefit plan (or related trust) sponsored or
maintained by Group or any of its subsidiaries, (y) any acquisition by any corporation with respect to which, following such acquisition, more than 85% of, respectively, the then outstanding shares of common stock of such corporation and the
combined voting power of the then outstanding voting securities of such corporation entitled to vote generally in the election of directors, is then beneficially owned, directly or indirectly, by all or substantially all of the individuals and
entities who were beneficial owners, respectively of the Outstanding Group Common Stock and Outstanding Group Voting Securities in substantially the same proportions as their ownership, immediately prior to such acquisition, of the Outstanding Group
Common Stock and Outstanding Group Voting Securities, as the case may be or (z) any acquisition by an individual, entity or group that, pursuant to Rule 13d-1 promulgated under the Exchange Act, is permitted to, and actually does, report its
beneficial ownership of Outstanding Group Common Stock and Outstanding Group Voting Securities on Schedule 13G (or any successor Schedule); provided further, that if any such individual, entity or group subsequently becomes required to or does
report its ownership of Outstanding Group Common Stock and Outstanding Group Voting Securities on Schedule 13D (or any 
  

 4 

 successor Schedule) then, for purposes of this Section 2(a), such individual, entity or group shall be deemed to have
first acquired, on the first date on which such individual, entity or group becomes required to or does so file, beneficial ownership of all of the Outstanding Group Common Stock and Outstanding Group Voting Securities beneficially owned by it on
such date; or 
  
 (b) Individuals who, as of the date hereof,
constitute Group’s Board of Directors (the “Incumbent Board”) cease for any reason to constitute at least a majority of the Group Board of Directors; provided, however, that any individual becoming a director subsequent to the date
hereof whose election, or nomination for election by Group’s shareholders, was approved by a vote of at least a majority of the directors then comprising the Incumbent Board shall be considered as though such individual were a member of the
Incumbent Board, but excluding, for this purpose, any such individual whose initial assumption of office occurs as a result of either an actual or threatened election contest (as such terms are used in Rule 14a-11 of Regulation 14A promulgated under
the Exchange Act) or other actual or threatened solicitation of proxies or consents; or 
  
 (c) There is consummated a reorganization, merger or consolidation, in each case, with respect to which all or substantially all of the individuals and entities who were the beneficial owners, respectively, of the
Outstanding Group Common Stock and Outstanding Group Voting Securities immediately prior to such reorganization, merger or consolidation, beneficially own, directly or indirectly, less than 85% of, respectively, the then outstanding shares of common
stock and the combined voting power 
  

 5 

 of the then outstanding voting securities entitled to vote generally in the election of directors, as the case may be, of
the corporation resulting from such reorganization, merger or consolidation (or any parent thereof) in substantially the same proportions as their ownership, immediately prior to such reorganization, merger or consolidation of the Outstanding Group
Common Stock and the Outstanding Group Voting Securities, as the case may be; or 
  
 (d) Approval by the shareholders of Group of a complete liquidation or dissolution of Group or the consummation of the sale or other disposition of all or substantially all of the assets of Group, other than to a
corporation with respect to which, following such sale or other disposition, more than 85% of, respectively, the then outstanding shares of common stock of such corporation and the combined voting power of the then outstanding voting securities of
such corporation entitled to vote generally in the election of directors is then beneficially owned, directly or indirectly, by all or substantially all of the individuals and entities who were the beneficial owners, respectively, of the Outstanding
Group Common Stock and Outstanding Group Voting Securities immediately prior to such sale or other disposition in substantially the same proportion as their ownership, immediately prior to such sale or other disposition, of the Outstanding Group
Common Stock and Outstanding Group Voting Securities, as the case may be. 
  
 Notwithstanding the foregoing provisions of this Section 2, no ‘Change of Control’ shall be deemed to have occurred in connection with transactions which occur pursuant to the Plan in connection with the Company’s emergence
from chapter 11 reorganization or under the Investment Agreement dated as of September 26, 2002 and amended as of January 17, 2003 between the Company and The Retirement Systems of Alabama and Retirement Systems of Alabama Holdings LLC (which
agreements are Exhibits M-1 and M-2 to the Plan). 
  

 6 

 3. Employment Period. The Company hereby agrees to continue the Executive in its employ, and
the Executive hereby agrees to remain in the employ of the Company, during the Employment Period under the terms and conditions provided herein. 
  
 4. Terms of Employment 
  
 (a) Position and Duties. 
  
 (i) During the Employment Period and prior to a Change of Control Date, (A) if the Board determines that the Executive has been performing
her duties in accordance with Section 4(a)(iii) hereof, it shall re-elect the Executive to the position of Executive Vice President, Corporate Affairs and General Counsel with substantially similar duties to the position held by the Executive on the
Effective Date of the Plan, (B) the Executive shall report directly to the President and Chief Executive Officer of the Company, and (C) the Executive’s services shall be performed at the Executive’s location on the Effective Date, the
Company’s headquarters, or a location where a substantial activity for which the Executive has responsibility is located. 
  
 (ii) During the Employment Period and on and following a Change of Control Date, (A) the Executive’s position (including status,
offices, titles and reporting relationships), authority, duties and responsibilities shall be at least commensurate in all material respects with the most significant of those held, exercised and assigned at any time during the 90-day period
immediately preceding the Change of Control Date and (B) the Executive’s services shall be performed at the location where the Executive was employed immediately preceding the Change of Control Date or any office or location within the
Washington, D.C. metropolitan area. 
  

 7 

 (iii) During the Employment Period, and excluding any periods of vacation and sick leave
to which the Executive is entitled, the Executive agrees to devote reasonable attention and time during normal business hours to the business and affairs of the Company and, to the extent necessary to discharge the responsibilities assigned to the
Executive hereunder, to use the Executive’s reasonable best efforts to perform faithfully and efficiently such responsibilities. During the Employment Period it shall not be a violation of this Agreement for the Executive to (A) serve on
corporate, civic or charitable boards or committees, (B) deliver lectures, fulfill speaking engagements or teach at educational institutions and (C) manage personal investments, so long as such activities do not significantly interfere with the
performance of the Executive’s responsibilities as an employee of the Company in accordance with this Agreement. It is also expressly understood and agreed that to the extent that such activities have been conducted by the Executive prior to
the Effective Date, the continued conduct of such activities (or the conduct of activities similar in nature and scope thereto) subsequent to the Effective Date shall not thereafter be deemed to interfere with the performance of the Executive’s
responsibilities to the Company. 
  

 8 

 (b) Compensation. 
  
 (i) Base Salary. During the Employment Period, the Company shall pay the Executive a base salary (x)
for the first 12 months of the term hereof at a rate not less than $425,000 (subject to a seventeen percent (17%) reduction consistent with the salary reduction being taken by senior officers of the Company), and (y) during each succeeding 12 months
of the term hereof at a rate not less than her base salary in effect on the last day of the preceding 12-month period (subject to the salary reduction being taken by senior officers of the Company during such period, if any). During the Employment
Period, base salary shall be reviewed at least annually and shall be increased at any time and from time to time as shall be substantially consistent with increases in base salary awarded in the ordinary course of business to other key employees of
the Company and its subsidiaries. Any increase in base salary shall not serve to limit or reduce any other obligation to the Executive under this Agreement. Base salary shall not be reduced after any such increase. Base salary under Section 4(b)(i)
(as reduced by any generally applicable senior officer salary reduction during the relevant period) shall hereinafter be referred to as the “Base Salary”. 
  
 (ii) Annual Bonus. In addition to Base Salary, the Executive shall be awarded, for each fiscal year
during the Employment Period, an annual bonus as shall be determined by the Board or its Human Resources Committee in accordance with the Incentive Compensation Plan as approved by the 
  

 9 

 Group Board of Directors or other annual bonus plan hereafter approved by the Board (“Incentive
Plan”). The Executive’s target percentage under the Incentive Plan each year shall be no less than 60% of her Base Salary (as in effect on the first day of the year) and her maximum bonus opportunity each year shall be no less than 120% of
such Base Salary. The annual bonus under Section 4(b)(ii) shall hereinafter be referred to as the “Annual Bonus”. Notwithstanding the foregoing provisions of this Section 4(b)(ii), under the concession program currently in place, there
will be no Incentive Plan awards made with respect to calendar years 2002 and 2003. 
  
 (iii) Long-Term Incentive Plan. In addition to Base Salary and Annual Bonus, the Executive shall be eligible to participate in the
Long-Term Incentive Plan in accordance with its terms as approved by the Group Board of Directors or such other long-term incentive plan as is hereafter approved by the Board (“LTIP”). The Executive’s target percentage under the LTIP
shall be no less than 80% of her Base Salary (as in effect on the first day of the year) and her maximum bonus opportunity each year shall be no less than 160% of such Base Salary. Notwithstanding the foregoing provisions of this Section 4(b)(iii),
under the concession program currently in place, there will be no LTIP awards made in calendar years 2002 and 2003. 
  
 (iv) Signing Bonus. Within thirty (30) days following the Effective Date, the Company shall pay the Executive a signing bonus of
$250,000. In the event that the Executive terminates her employment with the Company 
  

 10 

 during the first year of employment, the Executive shall retain a ratable portion of the signing bonus
(based on the number of full calendar months worked over twelve (12)) and shall promptly repay the remaining balance of the signing bonus to the Company. 
  
 (v) Equity Package. After the Company’s emergence from bankruptcy, an equity package for the Executive will be recommended to
the Human Resources Committee of the Board. The Executive’s equity package will be consistent with the equity packages of other Executive Vice Presidents of the Company except with respect to an Executive Vice President whose employment
agreement is modified to include an additional change of control trigger pursuant to Exhibit E-3 of the Plan. 
  
 (vi) Supplemental Executive Retirement Agreement. The Executive will receive a Supplemental Executive Retirement Agreement
(“SERP”) which will implement the provisions of the Company’s letter to the Executive dated February 26, 2003 (the “Offer Letter”), as modified by the requirements imposed on existing Company SERPs by Exhibit E-3 of the
Plan. 
  
 (vii) Incentive, Savings and
Retirement Plans. In addition to the compensation payable as hereinabove provided, the Executive shall be entitled to participate during the Employment Period in all incentive, savings and retirement plans, practices, policies and programs
applicable on or after the Effective Date to other key employees of the Company and its subsidiaries, in each case providing benefits which are the economic equivalent to those in effect on the Effective Date or as subsequently amended. 

 

 11 

 (viii) Welfare Benefit Plans. During the Employment Period, the Executive and/or
the Executive’s family, as the case may be, shall be eligible for participation in and shall receive all benefits under welfare benefit plans, practices, policies and programs provided by the Company and its subsidiaries (including, without
limitation, medical, prescription, dental, disability, salary continuance, employee life, group life, accidental death and travel accident insurance plans and programs) applicable on or after the Effective Date to other key employees of the Company
and its subsidiaries, in each case providing benefits which are the economic equivalent to those in effect on the Effective Date or as subsequently amended. 
  
 (ix) Expenses. During the Employment Period, the Executive shall be entitled to receive prompt reimbursement for all reasonable
expenses incurred by the Executive in accordance with the most favorable policies, practices and procedures of the Company and its subsidiaries applicable at any time on or after the Effective Date to other key employees of the Company and its
subsidiaries. 
  
 (x) Fringe Benefits.
During the Employment Period, the Executive shall be entitled to fringe benefits in accordance with the most favorable plans, practices, programs and policies of the Company and its subsidiaries applicable from time to time on or after the Effective
Date to other key employees 
  

 12 

 of the Company and its subsidiaries. Currently applicable fringe benefits include, but are not limited to
(v) on-line first class, positive space travel privileges for business and pleasure for you and your eligible family members, (w) a gross-up payment (up to a maximum of $10,000) to cover your tax liability resulting from such travel and (x) free
access to US Airways Club facilities for you and your eligible family members, (y) an annual car allowance of $9,000 which is paid in monthly installments (z) and certain relocation benefits including up to twenty-four (24) months of reasonable
temporary living expenses. 
  
 (xi) Office and
Support Staff. During the Employment Period, the Executive shall be entitled to an appropriate office or offices of a size and with furnishings and other appointments, and to secretarial and other assistance, as provided to other key employees
of the Company and its subsidiaries. 
  
 (xii)
Vacation. During the Employment Period, the Executive shall be entitled to paid vacation in accordance with the most favorable plans, policies, programs and practices of the Company and its subsidiaries as in effect on or after the Effective
Date with respect to other key employees of the Company and its subsidiaries. 
  
 5. Termination. 
  
 (a) Mutual
Agreement. During the Employment Period, the Executive’s employment hereunder may be terminated at any time by mutual agreement on terms to be negotiated at the time of such termination. 
  

 13 

 (b) Death or Disability. This Agreement shall terminate automatically upon the Executive’s
death. If the Company determines in good faith that the Disability of the Executive has occurred (pursuant to the definition of “Disability” set forth below), it may give to the Executive written notice of its intention to terminate the
Executive’s employment. In such event, the Executive’s employment with the Company shall terminate effective on the 90th day after receipt by the Executive of such notice given at any time after a period of six consecutive months of Disability and while such Disability is continuing (the “Disability Effective Date”), provided that, within
the 90 days after such receipt, the Executive shall not have returned to full-time performance of the Executive’s duties. For purposes of this Agreement, “Disability” means disability which, at least six months after its commencement,
is determined to be total and permanent by a physician selected by the Company or its insurers and acceptable to the Executive or the Executive’s legal representative (such agreement as to acceptability not to be withheld unreasonably). During
such six month period and until the Disability Effective Date, Executive shall be entitled to all compensation provided for under Section 4 hereof. 
  
 (c) Cause. During the Employment Period, the Company may terminate the Executive’s employment for “Cause.” For purposes of this
Agreement, “Cause” means (i) an act or acts of personal dishonesty taken by the Executive and intended to result in substantial personal enrichment of the Executive at the expense of the Company, (ii) repeated violations by the Executive
of the Executive’s obligations under Section 4(a) of this Agreement which are demonstrably willful and deliberate on the Executive’s part and which are not remedied in a reasonable period of time after receipt of written notice from the
Company or (iii) the conviction of the Executive of a felony. 
  

 14 

 (d) Good Reason. During the Employment Period, the Executive’s employment hereunder may be
terminated by the Executive for Good Reason. For purposes of this Agreement, “Good Reason” means: 
  
 (i) the assignment to the Executive of any duties inconsistent in any respect with Executive’s position (including status, offices,
titles and reporting relationships), authority, duties or responsibilities as contemplated by Section 4(a)(i) or (ii) of this Agreement, or any other action by the Company which results in a diminution in such position, authority, duties or
responsibilities, excluding for this purpose an isolated, insubstantial and inadvertent action not taken in bad faith and which is remedied by the Company promptly after receipt of notice thereof given by the Executive; 
  
 (ii) the failure by Group to elect the Executive to the
position of Executive Vice President, Corporate Affairs and General Counsel with substantially similar duties to the position held by the Executive on the Effective Date or any other action by Group which results in the diminution of the
Executive’s position, authority, duties, or responsibilities, excluding an isolated, insubstantial and inadvertent action not taken in bad faith and which is remedied by Group promptly after receipt of notice thereof is given by the Executive;

  
 (iii) any failure by the Company to comply
with any of the provisions of Section 4(b) of this Agreement, other than an isolated, 
  

 15 

 insubstantial and inadvertent failure not occurring in bad faith and which is remedied by the Company
promptly after receipt of notice thereof given by the Executive or (y) after the Change of Control Date, any failure of the Company to pay Base Salary or Annual Bonus in accordance with Sections 4(b)(i) and (ii), respectively, and any failure by the
Company to maintain or provide the plans, programs, policies and practices, and benefits described in Sections 4(b)(iii) - (xii) on the most favorable basis such plans, programs, policies and practices were maintained and benefits provided during
the 90-day period immediately preceding the Change of Control Date, or if more favorable to the Executive and/or the Executive’s family, as in effect at any time thereafter with respect to other key employees of the Company and its
subsidiaries; 
  
 (iv) the Company’s
requiring the Executive to be based at any office or location other than that described in Sections 4(a)(i)(B) or 4(a)(ii)(B) hereof, except for travel reasonably required in the performance of the Executive’s responsibilities; 
  
 (v) any purported termination by the Company of the
Executive’s employment otherwise than as expressly permitted by this Agreement; 
  
 (vi) any failure by the Company to comply with and satisfy Section 11(c) of this Agreement; or 
  
 (vii) any relocation of the Company’s corporate
headquarters outside of the Washington, D.C. metropolitan area. 
  

 16 

 For purposes of this Section 5(d), any good faith determination of “Good Reason” made by the Executive on or
after the Change of Control Date shall be conclusive. 
  
 (e)
Notice of Termination. Any termination by the Company for Cause or by the Executive for Good Reason shall be communicated by Notice of Termination to the other party hereto given in accordance with Section 12(b) of this Agreement. For
purposes of this Agreement, a “Notice of Termination” means a written notice which (i) indicates the specific termination provision in this Agreement relied upon, (ii) sets forth in reasonable detail the facts and circumstances claimed to
provide a basis for termination of the Executive’s employment under the provision so indicated and (iii) if the Date of Termination (as defined below) is other than the date of receipt of such notice, specifies the termination date (which date
shall be not more than fifteen (15) days after the giving of such notice). The failure by the Executive to set forth in the Notice of Termination any fact or circumstance which contributes to a showing of Good Reason shall not waive any right of the
Executive hereunder or preclude the Executive from asserting such fact or circumstance in enforcing her rights hereunder. 
  
 (f) Date of Termination. “Date of Termination” means the date of receipt of the Notice of Termination or any later date specified
therein, as the case may be; provided, however, that (i) if the Executive’s employment is terminated by the Company other than for Cause or Disability, the Date of Termination shall be the date on which the Company notifies the
Executive of such termination and (ii) if the Executive’s employment is terminated by reason of death or Disability, the Date of Termination shall be the date of death of the Executive or the Disability Effective Date, as the case may be.

  

 17 

 (g) Dispute Concerning Termination. If within fifteen (15) days after any Notice of Termination is
given, or, if later, prior to the Date of Termination (as determined without regard to this Section 5(g)), the party receiving such Notice of Termination notifies the other party that a dispute exists concerning the termination, the Date of
Termination shall be extended until the earlier of (i) the date on which the Employment Period ends or (ii) the date on which the dispute is finally resolved, either by mutual written agreement of the parties or by a final judgment, order or decree
of an arbitrator or a court of competent jurisdiction (which is not appealable or with respect to which the time for appeal therefrom has expired and no appeal has been perfected); provided, however, that the Date of Termination shall
be extended by a notice of dispute given by the Executive only if such notice is given in good faith and the Executive pursues the resolution of such dispute with reasonable diligence; and provided further, this Section 5(g) shall be
applicable only for terminations of employment occurring following the Change of Control Date. 
  
 (h) Compensation During Dispute. If a purported termination occurs during the Employment Period and the Date of Termination is extended in accordance with Section 5(g) hereof, the Company shall continue to pay
the Executive the full compensation in effect when the notice giving rise to the dispute was given (including, but not limited to, Base Salary) and continue the Executive as a participant in all compensation, benefit and insurance plans in which the
Executive was participating when the notice giving rise to the dispute was given, until the Date of Termination, as determined in accordance with Section 5(g) hereof. Amounts paid under this Section 5(h) are in addition to all other amounts due
under this Agreement and shall not be offset against or reduce any other amounts due under this Agreement. 
  

 18 

 6. Obligations of the Company upon Termination. 
  
 (a) Death. If the Executive’s employment is terminated by reason
of the Executive’s death, this Agreement shall terminate without further obligations to the Executive’s legal representatives under this Agreement, other than those obligations accrued or earned and vested (if applicable) by the Executive
as of the Date of Termination, including, for this purpose (i) the Executive’s full Base Salary through the Date of Termination at the rate in effect on the Date of Termination, disregarding any reduction in Base Salary in violation of this
Agreement (the “Highest Base Salary”), (ii) the product of the Annual Bonus paid to the Executive for the last full fiscal year and a fraction, the numerator of which is the number of days in the current fiscal year through the Date of
Termination, and the denominator of which is 365 and (iii) any compensation previously deferred by the Executive (together with any accrued interest thereon) and not yet paid by the Company and any accrued vacation pay not yet paid by the Company
(such amounts specified in clauses (i), (ii) and (iii) are hereinafter referred to as “Accrued Obligations”). All such Accrued Obligations shall be paid to the Executive’s estate or beneficiary, as applicable, in a lump sum in cash
within 30 days of the Date of Termination. Anything in this Agreement to the contrary notwithstanding, the Executive’s family shall be entitled to receive benefits at least equal to the most favorable benefits provided by the Company and any of
its subsidiaries to surviving families of employees of the Company and such subsidiaries under such plans, programs, practices and policies 
  

 19 

 relating to family death benefits, if any, in accordance with the most favorable plans, programs, practices and policies
of the Company and its subsidiaries in effect on or after the Effective Date or, if more favorable to the Executive and/or the Executive’s family, as in effect on the date of the Executive’s death with respect to other key employees of the
Company and its subsidiaries and their families. 
  
 (b)
Disability. If the Executive’s employment is terminated by reason of the Executive’s Disability, this Agreement shall terminate without further obligations to the Executive, other than those obligations accrued or earned and vested
(if applicable) by the Executive as of the Date of Termination, including for this purpose, all Accrued Obligations. All such Accrued Obligations shall be paid to the Executive in a lump sum in cash within 30 days of the Date of Termination.
Anything in this Agreement to the contrary notwithstanding, the Executive shall be entitled after the Disability Effective Date to receive disability and other benefits at least equal to the most favorable of those provided by the Company and its
subsidiaries to disabled employees and/or their families in accordance with such plans, programs, practices and policies relating to disability, if any, in accordance with the most favorable plans, programs, practices and policies of the Company and
its subsidiaries in effect on or after the Effective Date or, if more favorable to the Executive and/or the Executive’s family, as in effect at any time thereafter with respect to other key employees of the Company and its subsidiaries and
their families. 
  
 (c) Cause; Other than for Good Reason.
If the Executive’s employment shall be terminated for Cause, this Agreement shall terminate without further 
  

 20 

 obligations to the Executive (other than the obligation to pay to the Executive the Highest Base Salary through the Date
of Termination plus the amount of any accrued vacation pay not yet paid by the Company and any compensation previously deferred by the Executive (together with accrued interest thereon). If the Executive terminates employment other than for Good
Reason, this Agreement shall terminate without further obligations to the Executive, other than those obligations accrued or earned and vested (if applicable) by the Executive through the Date of Termination, including for this purpose, all Accrued
Obligations and any obligations provided for in an agreement, if any, between the Company and the Executive pursuant to Section 5(a). All such Accrued Obligations shall be paid to the Executive in a lump sum in cash within 30 days of the Date of
Termination. 
  
 (d) Good Reason; Other Than for Cause or
Disability. 
  
 (1) If, during the
Employment Period and prior to a Change of Control, the Company shall terminate the Executive’s employment other than for Cause, Disability or death or if the Executive shall terminate her employment for Good Reason: 
  
 (i) the Company shall pay to the Executive in a lump sum in
cash within 5 days after to Date of Termination the aggregate of the following amounts: 
  

	 	A.	to the extent not theretofore paid, the Executive’s Highest Base Salary through the Date of Termination; and 

  

	 	B.	the product of (x) the Annual Bonus paid to the Executive for the last full fiscal year ending during the Employment Period or, if higher, the Annual Bonus paid to the Executive
during the last full fiscal year ending during the Employment Period or, if higher, a constructive annual 

  

 21 

 bonus calculated to be equal to the bonus that would have been payable to the Executive from the Company
for the last full fiscal year ending prior to the Date of Termination (regardless of whether the Executive was employed in an officer position for all or any part of such fiscal year) as if Group had achieved the “target level of
performance” under the Incentive Plan set at the level for the fiscal year immediately preceding the Change of Control Date and assuming the Executive’s “target percentage” under the Incentive Plan equals such target percentage
assigned to the Executive immediately preceding the Change of Control Date (the highest Annual Bonus determined under this clause (x) shall hereinafter be called the “Recent Bonus”) and (y) a fraction, the numerator of which is the number
of days in the current fiscal year through the Date of Termination and the denominator of which is 365: and 
  

	 	C.	the product of (x) two and (y) the sum of (i) the Highest Base Salary and (ii) the Executive’s “target bonus” under the Incentive Compensation Plan for the year in
which termination occurs; and 

  

	 	D.	in the case of compensation previously deferred by the Executive, all amounts previously deferred (together with any accrued interest thereon) and not yet paid by the Company, and
any accrued vacation pay not yet paid by the Company; and 

  
 (ii) for a period of two years after the Date of Termination, or such longer period as any plan, program, practice or policy may provide, the Company shall continue benefits to the Executive and/or the
Executive’s family at least equal to those which would have been provided to them in accordance with the plans, programs, practices and policies described in Section 4(b)(viii) and (x) of this Agreement if the Executive’s employment had
not been terminated, including health insurance and life insurance, in accordance with the most favorable plans, practices, programs or policies of the Company and its subsidiaries in effect on or after the Effective Date, or if more favorable to
the Executive, as in effect at any time thereafter with respect to other key employees and their families. 
  

 22 

 (2) If, during the Employment Period and on and after a Change of Control Date, the
Company shall terminate the Executive’s employment other than for Cause, Disability, or death or if the Executive shall terminate her employment for Good Reason: 
  
 (i) the Company shall pay to the Executive in a lump sum in cash within 5 days after the Date of Termination
the aggregate of the following amounts: 
  

	 	A.	to the extent not theretofore paid, the Executive’s Highest Base Salary through the Date of Termination; and 

  

	 	B.	the product of (x) the Annual Bonus paid to the Executive for the last full fiscal year ending during the Employment Period or, if higher, the Annual Bonus paid to the Executive
during the last full fiscal year ending during the Employment Period or, if higher, a constructive annual bonus calculated to be equal to the bonus that would have been payable to the Executive from the Company for the last full fiscal year ending
prior to the Date of Termination (regardless of whether the Executive was employed in an officer position for all or any part of such fiscal year) as if Group had achieved the “target level of performance” under the Incentive Plan set at
the level for the fiscal year immediately preceding the Change of Control Date and assuming the Executive’s “target percentage” under the Incentive Plan equals such target percentage assigned to the Executive immediately preceding the
Change of Control Date (the highest Annual Bonus determined under this clause (x) shall hereinafter be called the “Recent Bonus”) and (y) a fraction, the numerator of which is the number of days in the current fiscal year through the Date
of Termination and the denominator of which is 365: and 

  

 23 

	 	C.	the product of (x) three and (y) the sum of (i) the Highest Base Salary and (ii) the Recent Bonus; and 

  

	 	D.	in the case of compensation previously deferred by the Executive, all amounts previously deferred (together with any accrued interest thereon) and not yet paid by the Company, and
any accrued vacation pay not yet paid by the Company; 

  

	 	E.	the Executive shall be entitled to receive a lump-sum retirement benefit equal to the difference between (a) the actuarial equivalent of the benefit under each Company-provided
retirement plan, including any supplemental and/or excess retirement plan (collectively, the “Retirement Plans”), that the Executive would receive if she remained employed by the Company at the compensation level provided for in Sections
4(b)(i) and (ii) of this Agreement for the remainder of the Employment Period and (b) the actuarial equivalent of the Executive’s actual benefit, if any, under the Retirement Plans; and 

  

	 	F.	the Executive shall be entitled to receive three years of LTIP payout. 

  
 (ii) The Company shall: 
  

	 	A.	for a period of three years after the Date of Termination or such longer period as any plan, program, practice or policy may provide, continue benefits to the Executive and/or the
Executive’s family at least equal to those which would have been provided to them in accordance with the plans, programs, practices and policies described in Sections 4(b)(vii) (with respect to any retirement plans), (viii) and (x) of this
Agreement if the Executive’s employment had not been terminated, including health insurance and life insurance, in accordance with the most favorable plans, practices, programs or policies of the Company and its subsidiaries in effect on or
after the Effective Date or, if more favorable to the Executive, as in effect at any time thereafter with respect to other key employees and their families and for purposes of eligibility for retiree benefits pursuant to such plans, practices,
programs and policies, the Executive shall be considered to have remained employed until the end of the Employment Period and to have retired on the last day of such period; and 

  

 24 

	 	B.	at the expiration of such three-year period, continue to provide the Executive with health insurance and on-line travel privileges on the same basis such benefits were provided to
the Executive on the last day of such three-year period, with such benefits to continue for the life of the Executive; provided, however, that if the Executive becomes eligible for health insurance through a subsequent employer, the Company’s
provision of such benefits shall be secondary to the benefit coverage of the subsequent employer. 

  
 (e) Other Termination. Upon any termination of the Executive’s employment following the Executive’s completion of at least five (5) years
of service with the Company, the Company will continue to provide the Executive with on-line travel privileges on the same basis such benefits were provided to the Executive on the last day of the Executive’s employment. 
  
 7. Non-exclusivity of Rights. Nothing in this Agreement shall prevent or limit
the Executive’s continuing or future participation in any benefit, bonus, incentive or other plans, programs, policies or practices, provided by Group, the Company or any of its subsidiaries and for which the Executive may qualify, nor shall
anything herein limit or otherwise affect such rights as the Executive may have under any stock option, restricted stock or other agreements with Group, the Company or any of its subsidiaries. Amounts which are vested benefits or which the Executive
is otherwise entitled to receive under any Plan, policy, practice or program of Group, the Company or any of its subsidiaries at or subsequent to the Date of Termination shall be payable in accordance with such plan, policy, practice or program.

  

 25 

 8. Full Settlement. The Company’s obligation to make the payments provided for in this Agreement and
otherwise to perform its obligations hereunder shall not be affected by any set-off, counterclaim, recoupment, defense or other claim, right or action which the Company may have against the Executive or others. In no event shall the Executive be
obligated to seek other employment or take any other action by way of mitigation of the amounts payable to the Executive under any of the provisions of this Agreement. The Company agrees to pay, to the full extent permitted by law, all legal fees
and expenses, as incurred by the Company, the Executive and others, which the Executive may reasonably incur as a result of any contest (regardless of the outcome thereof) by the Company or others of the validity or enforceability of, or liability
under, any provision of this Agreement or any guarantee of performance thereof (including as a result of any contest by the Executive about the amount of any payment pursuant to Section 9 of this Agreement), plus in each case interest at the
applicable Federal rate provided for in Section 7872(f)(2) of the Internal Revenue Code of 1986, as amended (the “Code”). 
  
 9. Certain Additional Payments by the Company. 
  
 (a) Anything in this Agreement to the contrary notwithstanding, in the event it shall be determined that any payment or distribution by the Company to or
for the benefit of the Executive (whether paid or payable or distributed or distributable pursuant to the terms of this Agreement or otherwise, but determined without regard to any additional payments required under this Section 9, including, but
not limited to, any amounts in respect of (i) options to acquire shares of Group common stock and (ii) restricted shares of 
  

 26 

 Group common stock) (a “Payment”), would be subject to the excise tax imposed by Section 4999 (or any successor
provision thereto) of the Code or any interest or penalties with respect to such excise tax (such excise tax, together with any such interest and penalties, are hereinafter collectively referred to as the “Excise Tax”), then the Executive
shall be entitled to receive an additional payment (a “Gross-Up Payment”) in an amount such that after payment by the Executive of all taxes (including any interest or penalties imposed with respect to such taxes), including, without
limitation, any income and employment taxes (and any interest and penalties imposed with respect thereto) and Excise Tax, imposed upon the Gross-Up Payment, the Executive retains an amount of the Gross-Up Payment equal to the Excise Tax imposed upon
Payments. 
  
 (b) Subject to the provisions of Section 9(c), all
determinations required to be made under this Section 9, including whether a Gross-Up Payment is required and the amount of such Gross-Up Payment, shall be made by a firm of independent public accountants selected by Group prior to the Change of
Control (the “Accounting Firm”) which shall provide detailed supporting calculations both to the Company and the Executive within five (5) business days of the Date of Termination, or such earlier time as is requested by the Company or the
Executive. In the event that the Accounting Firm is serving as accountant or auditor for the individual, entity or group effecting the Change of Control, the Executive may appoint another nationally recognized accounting firm to make the
determinations required hereunder (which accounting firm shall then be referred to as the Accounting Firm hereunder). All fees and expenses of the Accounting Firm shall be borne solely by the Company. Any Gross-Up Payment, as determined pursuant to
this 
  

 27 

 Section 9, shall be paid to the Executive upon the receipt of the Accounting Firm’s determination. If the Accounting
Firm determines that no Excise Tax is payable by the Executive, it shall furnish the Executive with a written opinion that failure to report the Excise Tax on the Executive’s applicable federal income tax return would not result in the
imposition of a negligence or other penalty. Any determination by the Accounting Firm shall be binding upon the Company and the Executive. As a result of the uncertainty in the application of Section 4999 of the Code (or any successor provision
thereto) at the time of the initial determination by the Accounting Firm hereunder, it is possible that Gross-up Payments which will not have been made by the Company should have been made (“Underpayment”), consistent with the calculations
required to be made hereunder. In the event that the Company exhausts its remedies pursuant to Section 9(c) and the Executive thereafter is required to make a payment of any Excise Tax, the Accounting Firm shall determine the amount of the
Underpayment (together with interest and penalties incurred by the Executive in connection therewith) that has occurred and any such Underpayment shall be promptly paid by the Company to or for the benefit of the Executive. 
  
 (c) The Executive shall notify the Company in writing of any claim by the
Internal Revenue Service that, if successful, would require the payment by the Company of the Gross-Up Payment. Such notification shall be given as soon as practicable but no later than ten (10) business days after the Executive knows of such claim
and shall apprise the Company of the nature of such claim and the date on which such claim is requested to be paid. The Executive shall not pay such claim prior to the expiration of the thirty-day period following the date on which she gives such
notice to the 
  

 28 

 Company (or such shorter period ending on the date that any payment of taxes with respect to such claim is due). If the
Company notifies the Executive in writing prior to the expiration of such period that it desires to contest such claim, the Executive shall: 
  
 (i) give the Company any information reasonably requested by the Company relating to such claim, 
  
 (ii) take such action in connection with contesting such claim as the
Company shall reasonably request in writing from time to time, including, without limitation, accepting legal representation with respect to such claim by an attorney reasonably selected by the Company, 
  
 (iii) cooperate with the Company in good faith in order effectively to
contest such claim, 
  
 (iv) permit the Company to participate in
any proceedings relating to such claim; provided, however, that the Company shall bear and pay directly all costs and expenses (including additional interest and penalties) incurred in connection with such contest and shall indemnify and hold the
Executive harmless, on an after-tax basis, for any Excise Tax or income tax, including interest and penalties with respect thereto, imposed as a result of such representation and payment of costs and expenses. Without limitation on the foregoing
provisions of this Section 9(c), the Company shall control all proceedings taken in connection with such contest and, at its sole option, may pursue or forgo any and all administrative appeals, proceedings, hearings and conferences with the taxing
authority in respect of such claim and may, at its sole option, either direct the Executive to pay the tax claimed and sue for a refund or contest the claim in any permissible manner, and the Executive agrees to prosecute such contest to a
determination before any administrative tribunal, in a court of initial jurisdiction and in one or more appellate courts, as the Company shall determine; provided, however, that if the Company directs the Executive to pay such claim and sue for a
refund, the Company shall advance the amount of such payment to the Executive, on an interest-free basis and shall indemnify and hold the Executive harmless, on an after-tax basis, from any Excise Tax or income tax, including interest or penalties
with respect thereto, imposed with respect to such advance or with respect to any imputed income with respect to such advance; and further provided that any extension of the statute of limitations relating to payment of taxes for the taxable year of
the Executive with respect to which such contested amount is claimed to be due is limited solely to such contested amount. Furthermore, the Company’s control of the contest shall be limited to issues with 
  

 29 

 respect to which a Gross-Up Payment would be payable hereunder; whereas the Executive shall be entitled
to settle or contest, as the case may be, any other issued raised by the Internal Revenue Service or any other taxing authority. 
  
 (d) If, after the receipt by the Executive of an amount advanced by the Company pursuant to Section 9(c), the Executive becomes entitled to receive any
refund with respect to such claim, the Executive shall (subject to the Company’s complying with the requirements of Section 9(c)) promptly pay to the Company the amount of such refund (together with any interest paid or credited thereon after
taxes applicable thereto). If, after the receipt by the Executive of an amount advanced by the Company pursuant to Section 9(c), a determination is made that the Executive shall not be entitled to any refund with respect to such claim and the
Company does not notify the Executive in writing of its intent to contest such denial of refund prior to the expiration of thirty (30) days after such determination, then such advance shall be forgiven and shall not be required to be repaid and the
amount of such advance shall offset, to the extent thereof, the amount of Gross-Up Payment required to be paid. 
  
 10. Confidential Information. The Executive shall hold in a fiduciary capacity for the benefit of the Company all secret or confidential information,
knowledge or data relating to Group, the Company or any of their subsidiaries, and their respective businesses, which shall have been obtained by the Executive’s employment by the Company or any of its subsidiaries and which shall not be or
become public knowledge (other than by acts by Executive or her representatives in violation of this Agreement). After termination of the Executive’s employment with the Company, the Executive shall not, without the prior written consent of the
Company, communicate or divulge any such 
  

 30 

 information, knowledge or data to anyone other than the Company and those designated by it. In no event shall an asserted
violation of the provisions of this Section 10 constitute a basis for deferring or withholding any amounts otherwise payable to the Executive under this Agreement. 
  
 11. Successors. 
  
 (a) This Agreement is personal to the Executive and without the prior written consent of the Company shall not be assignable by the Executive otherwise
than by will or the laws of descent and distribution. This Agreement shall inure to the benefit of and be enforceable by the Executive’s legal representatives. 
  
 (b) This Agreement shall inure to the benefit of and be binding upon the Company and its successors and assigns. 

 
 (c) The Company shall require any successor (whether direct or indirect,
by purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or assets of the Company to assume expressly and agree to perform this Agreement in the same manner and to the same extent that the Company would be
required to perform it if no such succession had taken place. As used in this Agreement, “Company” shall mean the Company as hereinbefore defined and any successor to its business and/or assets as aforesaid which assumes and agrees to
perform this Agreement by operation of law, or otherwise. 
  
 12.
Miscellaneous. 
  
 (a) This Agreement shall be
governed by and construed in accordance with the laws of the State of Delaware, without reference to principles of conflict of laws. The 
  

 31 

 captions of this Agreement are not part of the provisions hereof and shall have no force or effect. This Agreement may
not be amended or modified otherwise than by a written agreement executed by the parties hereto or their respective successors and legal representatives. 
  
 (b) All notices and other communications hereunder shall be in writing and shall be given by hand delivery to the other party or by registered or
certified mail, return receipt requested, postage prepaid, addressed as follows: 
  

			
	If to the Executive	 	If to the Company:
	 Elizabeth K. Lanier
	 	 US Airways, Inc.

	 3668 Grandin Road
	 	 2345 Crystal Drive

	 Cincinnati, Ohio 45226
	 	 Arlington, Virginia 22227

	 	 	 Attention:

	 	 	 President and Chief Executive Officer

	 	 	 - and -

	 	 	 Senior Vice President, Employee Relations

  
 or to such other address as either
party shall have furnished to the other in writing in accordance herewith. Notice and communications shall be effective when actually received by the addressee. 
  

(c) The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of
this Agreement. 
  
 (d) The Company may withhold from any amounts
payable under this Agreement such Federal, state or local taxes as shall be required to be withheld pursuant to any applicable law or regulation. 
  
 (e) The Executive’s failure to insist upon strict compliance with any provision hereof shall not be deemed to be a waiver of such provision or any
other provision hereof. 
  

 32 

 (f) This Agreement contains the entire understanding of the Company and the Executive with respect to the
subject matter hereof, except as specified in Section 4(b)(vi) hereof. 
  
 IN WITNESS WHEREOF, the Executive has hereunto set her hand and, pursuant to the authorization from its Board of Directors, the Company has caused these presents to be executed in its name on its behalf, all as of the day and year
first above written. 
  

	
	EXECUTIVE
	
	 /s/ Elizabeth K. Lanier

	 Elizabeth K. Lanier

	
	US AIRWAYS, INC.
	
	 /s/ Jerrold A. Glass

	 Jerrold A. Glass

	 Senior Vice President, Employee Relations

  

 33

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