Document:

exv10w75

 

Exhibit 10.75

US Airways Group, Inc.

2005 Equity Incentive Plan

Stock Appreciation Right Award Agreement

     Pursuant to the Stock Appreciation Right Award Grant Notice (“Grant Notice”) and this Stock
Appreciation Right Award Agreement (“Award Agreement”), US Airways Group, Inc. (the “Company”) has
awarded you a Stock Appreciation Right Award under its 2005 Equity Incentive Plan (the “Plan”) for
the number of stock appreciation rights (“Stock Appreciation Rights”) as indicated in the Grant
Notice (collectively, the “Award”). Except where indicated otherwise, defined terms not explicitly
defined in this Award Agreement but defined in the Plan shall have the same definitions as in the
Plan.

     The details of your Award are as follows:

     1. Number of Stock Appreciation Rights. The number of Stock Appreciation Rights
subject to your Award is set forth in the Grant Notice. Such number may be adjusted from time to
time for capitalization adjustments as described in Section 12(a) of the Plan.

     2. Calculation of Appreciation. The amount payable upon exercise of each vested
Stock Appreciation Right shall be equal to the excess of (A) the Fair Market Value per share of
Common Stock on the date of exercise, over (B) the Fair Market Value per share of Common Stock on
the date of grant of the Stock Appreciation Right (as indicated in the Grant Notice).

     3. Vesting. The Stock Appreciation Rights shall vest, if at all, as provided in the
vesting schedule set forth in your Grant Notice, provided, however, that:

          (a) vesting shall cease upon the termination of your Continuous Service; and

          (b) vesting of all Stock Appreciation Rights shall be fully accelerated in the event that (i)
your Continuous Service is terminated by the Company without Cause (as defined in the Plan) or by
reason of your death or Disability (as defined in the Plan), (ii) you terminate your Continuous
Service for Good Reason (as defined in your Executive Change in Control and Severance Benefits
Agreement) or Employment Agreement as applicable; or (iii) your Continuous Service is terminated
involuntarily with or without Cause (as defined in the Plan) within twenty-four (24) months
following a Change in Control (as defined in the Plan) of the Company that occurs subsequent to
September 27, 2005.

     4. Exercise. You may exercise the vested portion of your Award during its term by
delivering a Notice of Exercise (in a form designated by the Company) to the Secretary of the
Company, or to such other person as the Company may designate, during regular business hours,
together with such additional documents as the Company may then require. The exercise date will be
the business day on which your signed Notice of Exercise is received by the Company. If

 

 

the Notice of Exercise is received after normal business hours for a given day, then the
exercise date will be considered to be the following business day.

     5. Term. You may not exercise your Award before the commencement or after the
expiration of its term. The term of your Award commences on the Date of Grant and expires upon the
earliest of the following:

          (a) immediately upon the termination of your Continuous Service for Cause (as defined in the
Plan);

          (b) three (3) months after the termination of your Continuous Service for any reason (other
than for Cause or your death, Disability or Retirement), provided that if during any part of such
three (3) month period you may not exercise your Award solely because of the condition set forth in
Section 7 relating to “Securities Law Compliance,” your Award shall not expire until the earlier of
the Expiration Date or until it shall have been exercisable for an aggregate period of three (3)
months after the termination of your Continuous Service;

          (c) three (3) years after your death if you die either during your Continuous Service or
within three (3) months after your Continuous Service terminates for any reason other than Cause;

          (d) three (3) years after the termination of your Continuous Service due to your Disability;

          (e) three (3) years after the termination of your Continuous Service due to your Retirement;

          (f) the Expiration Date indicated in your Grant Notice; or

          (g) the day before the tenth (10th) anniversary of the Date of Grant.

     6. Payment. Subject to Section 10, the amount payable upon exercise of the Award
shall be settled in shares of Common Stock based on the Fair Market Value of such shares at the
time of exercise.

     7. Securities Law Compliance. Notwithstanding anything to the contrary contained
herein, you may not exercise your Award unless either (a) the shares of Common Stock issuable upon
such exercise are then registered under the Securities Act or (b) the Company has determined that
such exercise and issuance would be exempt from the registration requirements of the Securities
Act. The exercise of your Award also must comply with other applicable laws and regulations
governing the Award, and you may not exercise your Award if the Company determines that such
exercise would not be in material compliance with such laws and regulations.

     8. Transfer Restrictions. Your Award is not transferable, except by will or by the
laws of descent and distribution, and is exercisable during your life only by you.

 

 

     9. Award not a Service Contract. Your Award is not an employment or service
contract, and nothing in your Award shall be deemed to create in any way whatsoever any obligation
on your part to continue in the service of the Company or any Affiliate, or on the part of the
Company or any Affiliate to continue such service. In addition, nothing in your Award shall
obligate the Company or any Affiliate, their respective stockholders, boards of directors or
employees to continue any relationship that you might have as an Employee or Consultant of the
Company or any Affiliate.

     10. Withholding Obligations.

          (a) At the time you exercise your Award, in whole or in part, or at any time thereafter as
requested by the Company, you hereby authorize withholding from payroll and any other amounts
payable to you, and otherwise agree to make adequate provision for any sums required to satisfy the
federal, state, local and foreign tax withholding obligations of the Company or an Affiliate, if
any, which arise in connection with the exercise of your Award, in the same calendar year as you
exercise your Award.

          (b) Upon your request and subject to approval by the Company, in its sole discretion, and
compliance with any applicable legal conditions or restrictions, the Company may withhold from
fully vested shares of Common Stock otherwise issuable to you upon the exercise of your Award a
number of whole shares of Common Stock having a Fair Market Value, determined by the Company as of
the date of exercise, not in excess of the minimum amount of tax required to be withheld by law (or
such lower amount as may be necessary to avoid variable award accounting).

          (c) You may not exercise your Award unless the tax withholding obligations of the Company
and/or any Affiliate are satisfied. Accordingly, you may not be able to exercise your Award when
desired even though your Award is vested, and the Company shall have no obligation to issue a
certificate for such shares of Common Stock unless such obligations are satisfied.

     11. Notices. Any notices provided for in your Award or the Plan shall be given in
writing and shall be deemed effectively given upon receipt or, in the case of notices delivered by
the Company to you, five (5) days after deposit in the United States mail, postage prepaid,
addressed to you at the last address you provided to the Company.

     12. Miscellaneous.

          (a)  The rights and obligations of the Company with respect to your Award shall be
transferable to any one or more persons or entities, and all covenants and agreements hereunder
shall inure to the benefit of, and be enforceable by the Company’s successors and assigns.

          (b) You agree upon request to execute any further documents or instruments necessary or
desirable in the sole determination of the Company to carry out the purposes or intent of your
Award.

 

 

          (c) You acknowledge and agree that you have reviewed your Award in its entirety, have had an
opportunity to obtain the advice of counsel prior to executing and accepting your Award and fully
understand all provisions of your Award.

          (d) This Agreement will be subject to all applicable laws, rules, and regulations, and to such
approvals by any governmental agencies or national securities exchanges as may be required.

          (e) All obligations of the Company under the Plan and this Agreement will be binding on any
successor to the Company, whether the existence of such successor is the result of a direct or
indirect purchase, merger, consolidation, or otherwise, of all or substantially all of the business
and/or assets of the Company.

     13. Headings. The headings of the Sections in this Agreement are inserted for
convenience only and shall not be deemed to constitute a part of this Agreement or to affect the
meaning of this Agreement.

     14. Severability. If all or any part of this Agreement or the Plan is declared by
any court or governmental authority to be unlawful or invalid, such unlawfulness or invalidity
shall not invalidate any portion of this Agreement or the Plan not declared to be unlawful or
invalid. Any Section of this Agreement (or part of such a Section) so declared to be unlawful or
invalid shall, if possible, be construed in a manner which will give effect to the terms of such
Section or part of a Section to the fullest extent possible while remaining lawful and valid.

     15. Governing Plan Document. Your Award is subject to all the provisions of the
Plan, the provisions of which are hereby made a part of your Award, and is further subject to all
interpretations, amendments, rules and regulations which may from time to time be promulgated and
adopted pursuant to the Plan. In the event of any conflict between the provisions of your Award
and those of the Plan, the provisions of the Plan shall control.

* * * * *

     This Stock Appreciation Right Award Agreement shall be deemed to be signed by the Company and
the Participant upon the signing by the Participant of the Stock Appreciation Right Award Grant
Notice to which it is attached.exv10w79

 

Exhibit 10.79

U S AIRWAYS GROUP, INC.

Performance-Based Award Plan

(Amended and Restated Effective November 2, 2005)

Section I. Purpose

The purpose of the US Airways Group, Inc. Performance-Based Award Plan (the “Plan”) is to

	•	 	Focus management efforts on the creation of long-term stockholder value.
	 
	•	 	Encourage strategic decision-making by providing rewards for the long-term
achievement of Company goals.

The Plan, formerly known as the America West Airlines Performance-Based Plan, first became
effective as of January 1, 2003 (the “Effective Date”). This amended and restated version of the
Plan is effective November 2, 2005, and reflects the September 27, 2005 merger of America West
Holdings Corporation and US Airways Group, Inc. The Plan is administered in accordance with the U
S Airways Group, Inc. 2005 Equity Incentive Plan

Section II. Eligibility Criteria

Officers of US Airways Group, Inc. (the “Company”) or an Affiliate (as that term is defined in the
US Airways Group, Inc. 2005 Equity Incentive Plan) whose responsibilities have a direct and
significant impact on Company results are eligible to participate in the Plan. The Compensation
and Human Resources Committee of the Board of Directors of the Company (the “Committee”) will, at
its sole discretion, select individual officers to participate in the Plan (each a “Participant”).
Participation in one performance cycle (as such term is defined in Section IV) under the Plan does
not assure participation in any other performance cycle.

A person who is hired by the Company (or an Affiliate) as an eligible officer or promoted to
eligible officer status, in either case after the commencement of a performance cycle (as such term
is defined in Section IV) or a transition performance cycle (as such term is defined in Section IV)
(i) shall participate in the Plan only with respect to performance cycles, if any, that commence on
or after the date of hire or promotion, and (ii) shall participate in transition performance cycles
on such basis, if any, as the Committee may provide.

Section III. Award Levels

Participants have the opportunity to earn cash awards under the Plan based on the achievement of
long-term Company performance and, with certain exceptions set forth in Section V,

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continued active employment by the Company (or an Affiliate) in an eligible position through the
date of payment of the cash awards. Threshold, target, and maximum award levels are set forth
below. All award levels are expressed as a percentage of a Participant’s base salary, as in effect
on the date of payment of the cash award.

Award Levels Expressed as 

Percentages of Base Salary

	 	 	 	 	 	 	 
	Officer Level	 	Threshold	 	Target	 	Maximum
	CEO
	 	54%	 	125%	 	200%
	EVP
	 	43%	 	100%	 	175%
	SVP
	 	30%	 	70%	 	140%
	VP
	 	20%	 	45%	 	90%

Performance below the threshold level for any performance cycle (as such term is defined in
Section IV) or transition performance cycle (as such term is defined in Section IV) will result in
no cash award. The maximum award for any performance cycle is two times the target award, and the
maximum award for any transition performance cycle is the target award, subject in both cases to
further limitations contained in the US Airways Group, Inc. 2005 Equity Incentive Plan.

Section IV. Award Calculation

Awards are calculated based on Total Stockholder Return (“TSR”) of the Company over the performance
cycle (as such term is defined in this section) or transition performance cycle (as such term is
defined in this section) relative to the TSRs of a pre-defined competitive peer group. TSR, for
purposes of this Plan, is the rate of return, including both the price appreciation of the
Company’s Class A Common Stock or a competitive peer company’s common stock and the reinvestment of
any dividends declared on such common stock, over the relevant performance cycle or transition
performance cycle. In order to smooth out market fluctuations, the average daily closing price
(adjusted for splits and dividends) for the common stock of the Company and of the companies in the
pre-defined competitive peer group for the three months prior to the first and last days of the
performance cycle or transition performance cycle will be used to determine TSR. Daily closing
price of a share of common stock is the stock price at the close of trading (4:00 p.m. Eastern
Time) of the national exchange (New York Stock Exchange, the Nasdaq Stock Market or the American
Stock Exchange) on which such stock is traded.

	A)	 	Performance Cycles and Transition Performance Cycles
	 
	 	 	A performance cycle, over which TSR is measured, is the three-year period beginning January
1 of a given year and ending December 31 of the second following year (each a “Performance
Cycle”). The Committee, in its sole discretion, may authorize Performance Cycles, and it is
anticipated, although not assured, that a three-year Performance Cycle will begin each
January 1.
	 
	 	 	All officers of the Company (or an Affiliate) otherwise eligible to participate in the Plan
will be eligible to participate in a special Performance Cycle commencing September 27,
2005, and ending December 31, 2008.

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	 	 	In addition to the Performance Cycles described in the preceding paragraphs, there will be
two transition performance cycles over which TSR is measured (each a “Transition Performance
Cycle”). Those officers who were not entitled to participate in Performance Cycles
beginning before September 27, 2005, will be eligible to participate in two Transition
Performance Cycles beginning on September 27, 2005, and ending on December 31, 2006, and
December 31, 2007, respectively.
	 
	B)	 	Peer Group and Award Payout Percentages
	 
	 	 	The competitive peer group consists of the following thirteen companies: AirTran, Alaska,
American, ATA Holdings, Continental, Delta, Frontier, Hawaiian, JetBlue, Midwest Express,
Northwest, Southwest, and United. Such competitive peer group is subject to modification,
in the Committee’s sole discretion, to take account of unforeseen events such as mergers,
dispositions, bankruptcies and other significant business changes.
	 
	 	 	Award payout percentages will be based on the TSR of the Company relative to the TSRs of
competitive peer group companies, as follows:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Company TSR	 	 	 	 	Payout
as a % 	 	 	 	 
	Relative Rank	 	 	 	 	of Base Salary	 	 	 	 	 
	 	 	VP	 	SVP	 	EVP	 	CEO	 	 
	1 of 14
	 	90	%	 	140	%	 	175	%	 	200	%	 	Maximum
	2 of 14
	 	82.5	%	 	128.33	%	 	162.5	%	 	187.5	%	 	 
	3 of 14
	 	75	%	 	116.67	%	 	150	%	 	175	%	 	 
	4 of 14
	 	67.5	%	 	105	%	 	137.5	%	 	162.5	%	 	 
	5 of 14
	 	60	%	 	93.33	%	 	125	%	 	150	%	 	 
	6 of 14
	 	52.5	%	 	81.67	%	 	112.5	%	 	137.5	%	 	 
	7 of 14
	 	45	%	 	70	%	 	100	%	 	125	%	 	Target
	8 of 14
	 	38.75	%	 	60	%	 	86	%	 	108	%	 	 
	9 of 14
	 	32.5	%	 	50	%	 	71	%	 	89	%	 	 
	10 of 14
	 	26.25	%	 	40	%	 	57	%	 	71	%	 	 
	11 of 14
	 	20	%	 	30	%	 	43	%	 	54	%	 	Threshold
	12 of 14
	 	0	%	 	0	%	 	0	%	 	0	%	 	 
	13 of 14
	 	0	%	 	0	%	 	0	%	 	0	%	 	 
	14 of 14
	 	0	%	 	0	%	 	0	%	 	0	%	 	 

Notwithstanding the ranking of the Company’s TSR, award payout percentages for each of
the Transition Performance Cycles will not exceed the target payouts set forth in the above
table.

Section V. Award Payment Timing, Early Payment and Termination

If the TSR of the Company is at or above the threshold for a Performance Cycle or a Transition
Performance Cycle, awards will be paid in cash within sixty (60) days following the end of the
Performance Cycle or Transition Performance Cycle. For example, awards for the Transition
Performance Cycle that runs from September 27, 2005, through December 31, 2008 will be paid no
later than March 1, 2009. Payments will be subject to all required federal, state, and local tax
withholding.

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In the event of the termination of a Participant’s employment with the Company (or an Affiliate) on
account of retirement (as defined below), total disability (as defined in the long term disability
plan under which the Participant is covered) or death, (i) the Company shall pay to the Participant
(or the Participant’s estate in the case of death), at the same time as awards, if any, are paid to
other Participants for the same Performance Cycle, the award that the Participant would have earned
and received with respect to the Performance Cycle, if any, that ends with the calendar year in
which such termination occurs, had the Participant’s employment continued until the award payment
date for such Performance Cycle; and (ii) with respect to a Transition Performance Cycle, the
Company shall pay to the Participant (or the Participant’s estate in the case of death), on the
award payment date, if any, next following the Participant’s termination of employment, the cash
award, if any, that the Participant would have earned and received for that Transition Performance
Cycle had the Participant’s employment continued until the award payment date, but such award shall
be prorated to reflect the period of employment from the commencement of the Participant’s
participation in the Plan with respect to that Transition Performance Cycle to the date of
employment termination. For purposes of the foregoing, “retirement” shall mean the termination of
the Participant’s employment with the Company (or an Affiliate) after attainment of age fifty-five
(55) and completion of ten (10) years of service with the Company (or an Affiliate). Awards for
any other Performance Cycles or Transition Performance Cycle will not be earned or paid.

If the Participant’s employment with the Company (or an Affiliate) is terminated for any reason
other than retirement, total disability or death (whether such termination is voluntary or
involuntary), no awards will be earned or paid under the Plan with respect to any Performance
Cycles or Transition Performance Cycles.

Section VI. Plan Administration

The Plan will be administered by the Committee in accordance with the U S Airways Group, Inc. 2005
Equity Incentive Plan and in a manner that satisfies the requirements of Section 162(m) of the
Internal Revenue Code for qualified “performance-based” compensation.

Awards generally are calculated and distributed as provided in Sections IV and V; provided,
however, that no award payments will be made unless the Committee certifies in writing (a) the
relative TSR ranking of the Company, (b) that all other material terms of the Plan have been
satisfied and (c) that payments to Participants in stated amounts are appropriate under the Plan.

Section VII. Absence of Plan Funding; No Equity Interest

Benefits under the Plan shall be paid from the general funds of the Company, and a Participant (or
the Participant’s estate in the event of death) shall be no more than an unsecured general creditor
of the Company with no special or prior right to any assets of the Company.

Nothing contained in the Plan shall be deemed to give any Participant any equity or other interest
in the assets, business or affairs of the Company or any related company. It is not intended that
a Participant’s interest in the Plan shall constitute a security or equity interest within the
meaning of any state or federal securities laws.

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Section VIII. No Transferability

A Participant shall not have any right to transfer, sell, alienate, assign, pledge, mortgage,
collateralize or otherwise encumber any of the payments provided by this Plan.

Section IX. No Employment Rights

This Plan is not intended to be a contract of employment. Both the Participant and the Company
have the right to end their employment relationship with or without cause or notice.

Section X. Interpretation, Amendment and Termination

The Committee shall have the power to interpret all provisions of the Plan, which interpretations
shall be final and binding on all persons. The provisions of this document shall supersede all
provisions of any and all such prior documents relating to the Plan and its subject matter.
However, if the provisions of this document conflict with any provision of the U S Airways Group,
Inc. 2005 Equity Incentive Plan, the provisions set forth in the U S Airways Group, Inc. 2005
Equity Incentive Plan shall govern in all cases. The laws of the State of Delaware shall govern
all questions concerning the construction, validity and interpretation of the Plan, without regard
to such state’s conflict of laws rules.

The Committee reserves the right to amend or terminate the Plan at any time, with or without prior
notice; provided, however, that all amendments to the Plan shall preserve the qualification of
awards under the Plan as “performance-based” compensation under Section 162(m) of the Internal
Revenue Code. Notwithstanding the foregoing, (a) except as provided in Section IV with respect to
the calculation of TSR and in the following clause (b), the Committee may not amend the Plan in a
way that would materially impair the rights of a Participant with respect to a Performance Cycle or
Transition Performance Cycle that already has begun at the time of such amendment, unless such
Participant has consented in writing to such amendment; and (b) in the event of any act of God,
war, natural disaster, aircraft grounding, revocation of operating certificate, terrorism, strike,
lockout, labor dispute, work stoppage, fire, epidemic or quarantine restriction, act of government,
critical materials shortage, or any other act beyond the control of the Company, whether similar or
dissimilar (each a “Force Majeure Event”), which Force Majeure Event affects the Company or its
subsidiaries or other affiliates, the Committee, in its sole discretion, may (i) terminate or (ii)
suspend, delay, defer (for such period of time as the Committee may deem necessary), or substitute
any awards due currently or in the future under the Plan, including, but not limited to, any awards
that have accrued to the benefit of Participants but have not yet been paid.

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