Document:

EX-10.1

 

Exhibit 10.1

WEBSTER FINANCIAL CORPORATION

1992 STOCK OPTION PLAN

(as amended and restated effective October 23, 2006)

     Webster Financial Corporation (the “Corporation”) sets forth herein the terms of this 1992
Stock Option Plan (the “Plan”) as follows:

1. PURPOSE.

     The Plan is intended to advance the interests of the Corporation by providing eligible
individuals (as designated pursuant to Section 4 below) with an opportunity to acquire or increase
a proprietary interest in the Corporation, which thereby will create a stronger incentive to expend
maximum effort for the growth and success of the Corporation and its subsidiaries, and will
encourage such eligible individuals to remain in the employ or service of the Corporation or that
of one or more of its subsidiaries. To this end, the Plan provides for the grant of stock options
(“Options”), stock appreciation rights (“SARs”), Restricted Stock (as defined in Section 6(b)), and
Performance-Based Stock (as defined in Section 6(c)) to eligible individuals. Options granted
under the Plan may be non-qualified stock options or incentive stock options, as provided herein.
Grants of Options, SARs, Restricted Stock, and Performance-Based Stock under the Plan are referred
to collectively as “Incentive Awards.” The agreements setting out the terms of such grants are
referred to collectively as “Award Agreements.” An Award Agreement may, from time to time, be
issued as a grant notice (“Grant Notice”).

2. ADMINISTRATION.

     (a) Board. The Plan shall be administered by the Board of Directors of the Corporation (the
“Board”), which shall have the full power and authority to take all actions, and to make all
determinations required or provided for under the Plan or any Incentive Award granted or Award
Agreement entered into hereunder and all such other actions and determinations not inconsistent
with the specific terms and provisions of the Plan deemed by the Board to be necessary or
appropriate to the administration of the Plan or any Incentive Award granted or Award Agreement
entered into hereunder. All such actions and determinations shall be by the affirmative vote of a
majority of the members of the Board present at a meeting at which any issue relating to the Plan
is properly raised for consideration or by unanimous consent of the Board executed in writing in
accordance with the Corporation’s Certificate of Incorporation and By-Laws, and with applicable
law. The interpretation and construction by the Board of any provision of the Plan or of any
Incentive Award granted or Award Agreement entered into hereunder shall be final and conclusive.

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     (b) Committee. The Board may from time to time appoint a committee to administer the Plan
(the “Committee”) consisting of two or more members of the Board who qualify in all respects as
“non-employee directors” as defined in Rule 16b-3 of the Securities and Exchange Commission under
the Securities Exchange Act of 1934 (the “Exchange Act”) and “outside directors” for purposes of
Section 162(m) of the Code. The Board, in its sole discretion, may provide that the role of the
Committee shall be limited to making recommendations to the Board concerning any determinations to
be made and actions to be taken by the Board pursuant to or with respect to the Plan, or the Board
may delegate to the Committee such powers and authorities related to the administration of the
Plan, as set forth in Section 2(a) above, as the Board shall determine, consistent with the
Certificate of Incorporation and By-Laws of the Corporation and applicable law. The Board may
remove members, add members, and fill vacancies on the Committee from time to time, all in
accordance with the Corporation’s Certificate of Incorporation and By-Laws, and with applicable
law. The majority vote of the Committee, or acts reduced to or approved in writing by a majority
of the members of the Committee, shall be the valid acts of the Committee.

     (c) Designated Officer. In addition to delegation to the Committee, the Board may delegate to
any officer of the Corporation (the “Designated Officer”) the power and authority to grant
Incentive Awards under the Plan to any newly hired employee of the Corporation or any Subsidiary,
who is employed at a level below Executive Vice President; provided, however, that the Designated
Officer shall not grant Incentive Awards covering Stock in excess of the aggregate maximum number
of shares of Stock specified by the Board for such purpose at the time of delegation to such
officer (or in excess of the number of shares of Stock remaining available for issuance under the
Plan pursuant to Incentive Awards).

     (d) Delegation to the Committee or the Designated Officer. In the event that the Plan or any
Incentive Award granted or Award Agreement entered into hereunder provides for any action to be
taken by or determination to be made by the Board, such action may be taken by or such
determination may be made by the Committee or the Designated Officer if the power and authority to
do so has been delegated to the Committee or the Designated Officer, respectively, by the Board as
provided for in Section 2(b) or Section 2(c) above. Unless otherwise expressly determined by the
Board, any such action or determination by the Committee or the Designated Officer shall be final
and conclusive.

     (e) No Liability. No member of the Board or of the Committee nor any Designated Officer shall
be liable for any action or determination made in good faith with respect to the Plan or any
Incentive Award granted or Award Agreement entered into hereunder.”

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3. STOCK.

     The stock that may be issued pursuant to Incentive Awards granted under the Plan shall be
shares of Common Stock, par value $.01 per share, of the Corporation (the “Stock”), which shares
may be treasury shares or authorized but unissued shares. The number of shares of Stock that may
be issued pursuant to Incentive Awards granted under the Plan shall not exceed in the aggregate
6,661,000 shares, which number of shares is subject to adjustment as hereinafter provided in
Section 17 below. Of the aggregate shares, 2,200,000 resulted from an increase to the prior share
pool, which was approved by the shareholders of the Corporation at the Corporation’s 2003 annual
meeting. Of the increase in Incentive Awards by 2,200,000 shares of Stock, no more than an
aggregate of 220,000 shares therefore may be actually issued as Restricted Stock or
Performance-Based Stock. The Board shall account for which Restricted Stock and Performance-Based
Stock awards were granted pursuant to such amendment in its sole and complete discretion. If any
Incentive Award expires, terminates, or is terminated for any reason before exercise or vesting in
full, the shares of Stock that were subject to the unexercised, forfeited, expired or terminated
portion of such Incentive Award shall be available for future grants of Incentive Awards under the
Plan.

4. ELIGIBILITY.

     (a) Employees and Subsidiary Directors. Incentive Awards may be granted under the Plan to any
full-time employee of the Corporation or any Subsidiary (including any such employee who is an
officer or director of the Corporation or any Subsidiary) or to any directors of a Subsidiary who
are not officers or employees of the Corporation or any Subsidiary (“Subsidiary Directors”) as the
Board shall determine and designate from time to time before expiration or termination of the Plan.
(An eligible individual who receives an Incentive Award under the Plan shall be referred to as a
“Grantee.”) The maximum number of shares of Stock subject to Options or SARs that may be granted
under the Plan to any officer or other employee of the Corporation or any Subsidiary in any
calendar year is 500,000 shares (subject to adjustment as provided in Section 17 hereof). The
maximum number of shares of Stock that can be awarded under the Plan as Restricted Stock and
Performance-Based Stock to any officer or other employee of the Corporation or any Subsidiary in
any calendar year is 100,000 shares (subject to adjustment as provided in Section 17 hereof).

     (b) Non-Employee Directors. Effective April 26, 2001, directors of the Corporation who are not
officers or other salaried employees of the Corporation or any Subsidiary thereof (“Non-Employee
Directors”) shall be eligible to become Grantees under the Plan.

     An individual may hold more than one Incentive Award, subject to such restrictions as are
provided herein.

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5. EFFECTIVE DATE AND TERM OF THE PLAN.

     (a) Effective Date. The Plan was effective as of March 23, 1992. The Plan has been previously
restated twice effective April 26, 2001 and January 31, 2005, respectively. The Plan now is
amended and restated effective October 23, 2006, and shall be applicable to Incentive Awards
granted on or after that date.

     (b) Term. The Plan shall terminate on March 20, 2013.

6. GRANT OF INCENTIVE AWARDS.

     (a) Options. Subject to the terms and conditions of the Plan, the Board may, at any time and
from time to time, before the date of termination of the Plan, award to a Grantee Options to
purchase such number of shares of the Stock on such terms and conditions as the Board may
determine, including any terms or conditions which may be necessary to qualify such Options as
incentive stock options (“Incentive Stock Options) within the meaning of Section 422 of the
Internal Revenue Code of 1986, as amended, or the corresponding provision of any subsequently
enacted tax statute (the “Code”). The date on which the Board approves the grant of an Option
shall be considered the date on which such Option is granted; provided that the date of on which
the Grantee first renders services to the Company or a Subsidiary (the “Hire Date”) shall be the
grant date if the Hire Date is later than the date on which the Board approves the grant. No
Option may be exercisable after the date of grant prior to the completion of a minimum of one year
of service for the Corporation or a Subsidiary from the date of such grant to the Grantee, unless
the Board provides that such service will not be required in the case of death or disability of the
Grantee, and, provided, further, that this service requirement applies solely with respect to
options granted by reason of the 2,200,000 increase in shares of Stock referenced in Section 3.
The Board shall account for which Options were granted from the increased shares in its sole and
complete discretion.

     (b) Restricted Stock Awards. For purposes of the Plan, “Restricted Stock” means shares of
Stock awarded to a Grantee pursuant to this Section 6(b), which are subject to forfeiture
restrictions based on the Grantee’s length of service or other non-performance-based criteria.
Subject to the terms and conditions of the Plan, the Board may, at any time and from time to time,
before the date of termination of the Plan, award to a Grantee shares of Restricted Stock. Except
with respect to Restricted Stock issued upon fulfillment of the performance criteria for
Performance-Based Stock, no Restricted Stock award may vest prior to the completion of a minimum of
one year of service for the Corporation or a Subsidiary
from the date of such grant to the Grantee, unless the Board provides that such service will not be
required in the case of death or disability of the Grantee, and, provided, further, that this
service requirement applies solely with respect to

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Restricted Stock awards granted by reason of the
2,200,000 increase in shares of Stock referenced in Section 3, of which an aggregate maximum of
220,000 shares may be issued as Restricted Stock or Performance-Based Stock. Each grant of
Restricted Stock shall be effected by the execution of an Award Agreement setting out the terms and
conditions applicable thereto and by the issuance of shares of Restricted Stock.

     Upon attainment of the vesting requirements (or, to the extent specified by the Board, partial
attainment of such requirements), the Grantee of a Restricted Stock award shall be entitled to the
shares of Stock specified in the grant (or the portion of such shares earned by partial attainment
of the requirements, as applicable) free of restrictions, except as set out in Section 15. Upon
the failure of the Grantee to pay the price specified for the shares within the time set by the
Board at the time of the grant or upon termination of the Grantee’s employment without the Grantee
having satisfied the service requirement specified at the time of grant, except as shall otherwise
have been specified in the Award Agreement at the time of grant or in an amendment thereto, the
shares of Restricted Stock (or appropriate portion thereof) shall be forfeited and shall again be
available for re-grant under the terms of the Plan. The Board may require that the certificates
evidencing the grant of shares of Restricted Stock hereunder be held by an officer of the
Corporation until such restrictions have expired. The Board may also cause a legend to be placed
on such certificates making appropriate reference to the restrictions to which the shares are
subject. Unless the Board otherwise provides in an Award Agreement, Grantees of Restricted Stock
shall have the right to vote such Stock and the right to receive any dividends declared or paid
with respect to such Stock. The Board shall determine the amount, form, timing and other terms
regarding payment of such dividends. The Board may provide that any dividends paid on Restricted
Stock must be reinvested in shares of Stock, which may or may not be subject to the same vesting
conditions and restrictions applicable to such Restricted Stock.

     (c) Performance-Based Stock Awards. For purposes of the Plan, “Performance-Based Stock” means
an Incentive Award granted to a Grantee pursuant to this Section 6(c), which is subject to the
attainment of pre-established performance goals over a performance period of at least one year and
up to ten years, the attainment of which would, subject to the additional terms and conditions of
this paragraph and the Plan generally, entitle the Grantee to receive Stock and/or Restricted Stock
in a pre-determined amount or an amount determined pursuant to the performance criteria
formulation. Subject to the terms and conditions of the Plan, the Board may, at any time and from
time to time, before the date of termination of the Plan, award to a Grantee an Incentive Award of
Performance-Based Stock. No Performance-Based Stock may vest prior to the completion of a minimum
of one year of service for the Corporation or a Subsidiary from the date of such grant to the
Grantee, unless the Board provides that such

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service will not be required in the case of death or
disability of the Grantee, and, provided, further, that this service requirement applies solely
with respect to Performance-Based Stock awards granted by reason of the 2,200,000 increase in
shares of Stock referenced in Section 3, of which an aggregate maximum of 220,000 shares may be
issued as Restricted Stock or Performance-Based Stock. Each grant of Performance-Based Stock shall
be effected by the execution of an Award Agreement setting out the terms and conditions applicable
thereto and, in the Board’s discretion, all or a portion of the shares of Stock subject to the
Performance-Based Stock award may be issued at the time of grant subject to the applicable
performance objectives.

     The applicable performance objectives for a Performance-Based Stock award shall be established
in writing by the Board before the ninetieth day after the beginning of any performance period
applicable to such award and while the outcome is substantially uncertain, or at such other date as
may be required or permitted for “performance-based compensation” under Code Section 162(m).
Performance objectives shall be based on one or more of the following criteria: the Corporation’s
Stock price, income, operating profit, assets and liabilities, stockholders equity, market share,
operating revenue, operating expenses, financial ratings by outside agencies, earnings per share or
return on assets, equity or investments. Performance objectives may include positive results,
maintaining the status quo or limiting economic losses.

     Upon attainment of the specified performance objectives (or, to the extent specified by the
Board, partial attainment of such objectives), the Grantee of a Performance-Based Stock award shall
be entitled to the shares of Stock and/or Restricted Stock specified in the grant (or the portion
of such shares earned by partial attainment of the objectives, as applicable), except as set out in
Section 15. Upon the failure of the Grantee to pay the price specified for the shares within the
time set by the Board at the time of the grant or upon the expiration of the specified period for
attaining performance objectives without such objectives having been achieved, except as shall
otherwise have been specified in the Award Agreement at the time of grant or in an amendment
thereto, the shares of Performance-Based Stock (or appropriate portion thereof) shall be forfeited
and shall again be available for re-grant under the terms of the Plan. The Board may require that
the certificates evidencing the grant of shares of Performance-Based Stock hereunder be held by an
officer of the Corporation until the applicable performance objectives have been attained. The
Board may
also cause a legend to be placed on such certificates making appropriate reference to the
conditions to which the shares are subject. Unless the Board otherwise provides in an Award
Agreement, with respect to Stock treated as issued subject to attainment of performance criteria,
Grantees
shall have the right to vote such Stock and the right to receive any dividends declared or paid
with respect to such Stock. The Board shall determine the amount, form, timing and other terms
regarding payment of any such dividends. The Board may

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provide that any dividends paid on
Performance-Based Stock must be reinvested in shares of Stock, which may or may not be subject to
the same conditions applicable to such Performance-Based Stock.

     (d) Stock Appreciation Rights. Subject to the terms and conditions of the Plan, the Board
may, at any time and from time to time, before the date of termination of the Plan award to a
Grantee a SAR. A SAR shall confer on the Grantee to whom it is awarded the right to receive, upon
exercise, the excess of (i) the fair market value of a share of Stock on the date of exercise
(determined in good faith by the Board), over (ii) the grant price. Each grant of a SAR shall be
effected by execution of an Award Agreement setting out the terms and conditions applicable
thereto. The Award Agreement for a SAR shall specify the grant price of the SAR, which shall be no
less than the fair market value of a share of Stock on the date of grant. The date on which the
Board approves the award of a SAR shall be considered the date of grant. No SAR may be exercisable
after the date of grant prior to the completion of a minimum of one year of service for the
Corporation from the date of such grant to the Grantee, unless the Board provides that such service
will not be required in the case of death or disability of the Grantee. Each SAR shall be settled
in whole shares of Stock, with any fractional share of Stock that would result from exercise of the
SAR eliminated entirely.

     (e) Deferral. The Board may establish rules and procedures setting forth the circumstances
under which distribution or the receipt of Stock and other amounts payable with respect to an
Incentive Award shall be deferred either automatically or at the election of the Grantee and
whether and to what extent the Corporation shall pay or credit amounts constituting interest (at
rates determined by the Board) or dividends or deemed dividends on such deferrals.

7. LIMITATION ON INCENTIVE STOCK OPTIONS.

     An Option shall constitute an Incentive Stock Option only (i) if the Option is awarded to an
eligible individual who is an employee of the Corporation or any Subsidiary of the Corporation;
(ii) to the extent specifically provided in the related Award Agreement; and (iii) to the extent
that the aggregate fair market value (determined at the time the option is granted) of the shares
of Stock with respect to which Incentive Stock Options are exercisable for the first time by any
Grantee during any calendar year (under the Plan and all other plans of the Grantee’s employer
corporation and its parent and subsidiary corporations within the meaning of Section 422(d) of the
Code) does not exceed $100,000. This limitation shall be applied by taking Options into account in
the order in which they were granted.

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8. AWARD AGREEMENTS.

     All Incentive Awards granted pursuant to the Plan shall be evidenced by an Award Agreement, in
such form or forms as the Board shall from time to time determine. Award Agreements granted from
time to time or at the same time need not contain similar provisions but shall be consistent with
the terms of the Plan. Each Award Agreement evidencing an award of Options shall specify whether
such Options are intended to be non-qualified stock options or Incentive Stock Options, and in the
absence of such specification such options shall be deemed non-qualified stock options. To the
extent an Award Agreement for an Option or SAR is issued in the form of a Grant Notice which omits
the specific terms governing the Option or SAR, the standard provisions set forth in this Plan
shall apply. In particular, under any such Grant Notice, the terms set forth in Sections 10, 11,
12, and 13, respectively, shall apply to (i) the term and exercisability of the Option or SAR; (ii)
the transferability of the Option or SAR; (iii) the effect of termination of service or employment;
or (iv) the rights in the event of death, disability or termination of employment on or after
attainment of the normal retirement age as defined in the Corporation’s pension plan (“Normal
Retirement”).

9. OPTION PRICE.

     The purchase price of each share of the Stock subject to an Option (the “Option Price”) shall
be fixed by the Board and stated in each Award Agreement, and shall be not less than the greater of
par value or 100 percent of the fair market value of a share of the Stock on the date the Option is
granted (as determined in good faith by the Board); provided, however, that in the event the
Grantee would otherwise be ineligible to receive an Incentive Stock Option by reason of the
provisions of Sections 422(b)(6) and 424(d) of the Code (relating to stock ownership of more than
10 percent), the Option Price of an Option which is intended to be an Incentive Stock Option shall
be not less than the greater of par value or 110 percent of the fair market value of a share of
Stock at the time such Option is granted. In the event that the Stock is listed on an established
national or regional stock exchange, is admitted to quotation on the Nasdaq National Market, or
otherwise is publicly traded in an established securities market, in determining the fair market
value of the Stock, the Board shall use the closing price of the Stock on such exchange or in such
market (the highest such closing price if there is more than one such exchange or market) on the
trading date immediately before the Option is granted (or, if there is no such closing price, then
the Board shall use the mean between the highest bid and lowest asked prices or between the high
and low prices on such date), or, if no sale of the Stock has been made on such day, on the next
preceding day on which any such sale shall have been made.

     No Option granted under the Plan shall be amended or modified so as to reduce the Option Price
of such Option and no other action shall be taken to reprice

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any Option if such amendment,
modification or other repricing would result in a charge against the earning of the Corporation or
any of its affiliates.

10. TERM AND EXERCISE OF OPTIONS AND SARS.

     (a) Term. Subject to Sections 12 and 13 below, each Option or SAR granted under the Plan
shall terminate and all rights to acquire shares thereunder shall cease upon the expiration of 10
years from the date such Option or SAR is granted, or on such earlier date as explicitly stated in
the Award Agreement; provided, however, that in the event the Grantee would otherwise be ineligible
to receive an Incentive Stock Option by reason of the provisions of Sections 422(b)(6) and 424(d)
of the Code (relating to stock ownership of more than 10 percent), an Option granted to such
Grantee which is intended to be an Incentive Stock Option shall in no event be exercisable after
the expiration of five years from the date it is granted.

     (b) Exercisability Period and Limitations on Exercise. Subject to Sections 6(a) and 6(d), as
applicable, each Option or SAR shall vest and become exercisable, in whole or in part, at any time
and from time to time, over a period commencing on or after the date of grant and ending upon the
expiration or termination of the Option or SAR, as the Board shall determine and set forth in the
Award Agreement relating to such Option or SAR; provided, however, that to the extent the Option or
SAR is awarded pursuant to a Grant Notice, and subject to Sections 6(a) and 6(d), as applicable,
the Option or SAR shall then vest in equal annual installments ratable on each vesting date stated
in the Grant Notice or, if the Grant Notice provides for cliff vesting, on the last day of the
vesting period, subject to the continued service of the Grantee on each vesting date or, in the
case of cliff vesting, the vesting date, such that, except as provided otherwise in Section 12 or
Section 17, any portion of an Option or SAR not yet vested or exercisable as of the date the
Grantee ceases to provide continuous services to the Corporation or a Subsidiary, shall be
forfeited and shall not in the future become exercisable. Without limiting the foregoing, the
Board, subject to the terms and conditions of the Plan, may in its sole discretion provide that an
Option or SAR may not be exercised in whole or in part for any period or periods of time during
which such Option or SAR is outstanding; provided, however, that any such limitation on the
exercise of an Option or SAR may be rescinded, modified or waived by the Board, in its sole
discretion, at any time and from time to time after the date of grant of such Option or SAR, so as
to accelerate the time at which the Option or SAR may be exercised. Each Option or SAR granted to
Non-Employee Directors or Subsidiary Directors shall be exercisable, in whole or in part, at any
time and from time to time, over a period commencing on the date of grant and ending on the
expiration or termination of the Option or SAR as set forth in the Award Agreement.

     (c) Method of Option Exercise. An Option that is exercisable hereunder may be exercised by
delivery to the Corporation on any business day, at its principal

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office, addressed to the
attention of the Committee, of written notice of exercise, which notice shall specify the number of
shares with respect to which the Option is being exercised. The minimum number of shares of Stock
with respect to which an Option may be exercised, in whole or in part, at any time shall be the
lesser of 100 shares or the maximum number of shares available for purchase under the Option at the
time of exercise. Payment of the Option Price for the shares of Stock purchased pursuant to the
exercise of an Option shall be made (i) in cash or in cash equivalents; (ii) through the tender to
the Corporation of shares of Stock, which shares shall be valued, for purposes of determining the
extent to which the Option Price has been paid thereby, at their fair market value (determined in
the manner described in Section 9 above) on the date of exercise; or (iii) by a combination of the
methods described in (i) and (ii). Unless the Award Agreement provides otherwise, payment in full
of the Option Price need not accompany the written notice of exercise provided the notice of
exercise directs that the Stock certificate or certificates for the shares for which the Option is
exercised be delivered to a licensed broker acceptable to the Corporation as the agent for the
individual exercising the Option and, at the time such Stock certificate or certificates are
delivered, the broker tenders to the Corporation cash (or cash equivalents acceptable to the
Corporation) equal to the Option Price for the shares of Stock purchased pursuant to the exercise
of the Option plus the amount (if any) of federal and/or other taxes which the Corporation may, in
its judgment, be required to withhold with respect to the exercise of the Option. If the person
exercising the Option is not the Grantee, such person shall also deliver with the notice of
exercise appropriate proof of his or her right to exercise the Option. An attempt to exercise any
Option granted hereunder other than as set forth above shall be invalid and of no force and effect.
Promptly after the exercise of an Option and the payment in full of the Option Price of the shares
of Stock covered thereby, the individual exercising the Option shall be entitled to the issuance of
a Stock certificate or certificates evidencing his ownership of such shares. A separate Stock
certificate or certificates shall be issued for any shares purchased pursuant to the exercise of an
Option which is an Incentive Stock Option, which certificate or certificates shall not include any
shares which were purchased pursuant to the exercise of an Option which is not an Incentive Stock
Option. An individual holding or exercising an Option shall have none of the rights of a
shareholder until the shares of Stock covered thereby are fully paid and issued to him and, except
as provided in Section 17 below, no adjustment shall be made for dividends or other rights for
which the record date is before the date of such issuance.

11. TRANSFERABILITY OF INCENTIVE AWARDS.

     (a) Restricted Stock and Performance-Based Stock. No shares of Restricted Stock or
Performance-Based Stock shall be sold, transferred, assigned, pledged or otherwise encumbered until
the Grantee has satisfied all applicable performance objectives, if any, and service requirements
(if any) imposed as a condition to the vesting of such shares and until the lapse or expiration of
all other

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applicable restrictions and conditions imposed by the Board with respect to such shares.

     (b) SARs. During the lifetime of a Grantee to whom a SAR is granted, only such Grantee (or,
in the event of legal incapacity or incompetence, the Grantee’s guardian or legal representative)
may exercise such SAR. No SAR shall be sold, transferred, assigned, pledged or otherwise
encumbered by the Grantee to whom it is granted, other than by will or the laws of descent and
distribution.

     (c) Options. During the lifetime of a Grantee to whom an Incentive Stock Option is granted,
only such Grantee (or, in the event of legal incapacity or incompetence, the Grantee’s guardian or
legal representative) may exercise such Incentive Stock Option. No Option shall be assignable or
transferable by the Grantee to whom it is granted, other than by will or the laws of descent and
distribution. Notwithstanding the foregoing, and provided the Award Agreement sets forth this
provision explicitly, the Board, subject to the terms and conditions of the Plan, may in its sole
discretion permit a Grantee to transfer not for value all or part of an Option that is not intended
to constitute an Incentive Stock Option to a Family member or a Family Trust, provided that the
transferee shall enter into a written agreement to be bound by the terms of the Plan and the Award
Agreement and any subsequent transfer of the Option or shares of Stock shall be subject to the
transfer restrictions set out in the Plan. A transfer to an entity in which more than 50% of the
voting interests are owned by Family members (or the Grantee) in exchange for an interest in that
entity, shall be considered to be “not for value” for this purpose. For this purpose, “Family”
means the child, stepchild, grandchild, parent, stepparent, grandparent, spouse, former spouse,
sibling, niece, nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law
or sister-in-law of the Grantee, including adoptive relationships, or any person sharing the
Grantee’s household (other than a tenant or employee) and “Family Trust” means a trust in which
members of the Grantee’s Family have more than 50% of the beneficial interest, a foundation in
which members of the Grantee’s Family (or the Grantee) control the management of assets, and any
other entity in which a member of the Grantee’s Family (or the Grantee) owns more than 50% of the
voting interests.

12. TERMINATION OF SERVICE OR EMPLOYMENT.

     (a) Employees. With respect to an Option or SAR, upon the termination of the employment or
service of the Grantee (other than a Subsidiary Director or Non-Employee Director) with the
Corporation or a Subsidiary, other than by reason of the death or “permanent and total disability”
(within the meaning of Section 22(e)(3) of the Code) or after the Grantee’s attainment of Normal
Retirement, any Option or SAR granted pursuant to the Plan shall terminate three months after the
date of such termination of employment or service, unless earlier terminated pursuant to Section
10(a) above, and such Grantee shall have no further right to purchase shares of Stock pursuant to
such Option or to settle the SAR;

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provided, however, that, subject to Sections 6(a) and 6(d), in
the event the Corporation or Subsidiary, as applicable, terminates the Grantee’s employment without
“cause,” and this termination occurs prior to full vesting and exercisability of the Option or SAR,
the portion of the Grantee’s Option or SAR considered vested and exercisable shall be determined by
multiplying the number of shares of Stock subject to the Option or SAR by a fraction, the numerator
of which is the number of full calendar months during which the Grantee was employed by the
Corporation or a Subsidiary after the vesting commencement date specified in the Award Agreement
and the denominator of which is the number of months of service required to achieve full vesting
and exercisability. For purposes of this Section 12(a), “cause” shall mean termination because of
the Grantee’s personal dishonesty, incompetence, willful misconduct, breach of fiduciary duty
involving personal profit, intentional failure to perform stated duties, willful violation of any
law, rule or regulation (other than traffic violations or similar offenses) or final
cease-and-desist order, material breach of any provision of any employment agreement between the
Grantee and the Corporation or any Subsidiary, or a definitive determination that the Grantee’s job
performance is unsatisfactory pursuant to the written performance review procedures of the
Corporation or any Subsidiary. Furthermore, in the event of a Grantee’s death during the period
following the Grantee’s termination of employment or service under this Section 12(a), the
executors or administrators or legatees or distributees of such Grantee’s estate shall have the
right (subject to the general limitations on exercise set forth in Section 10(b) above), at any
time subsequent to such Grantee’s death and before termination of the Option as provided in Section
10(a) above, to exercise any Option held by such Grantee at the date of such Grantee’s death,
subject to any installment limitation on exercise imposed pursuant to Section 10(b) above or above
in Section 12(a), as applicable.

     With respect to an award of Restricted Stock, upon the termination of the employment or
service of a Grantee with the Corporation or a Subsidiary other than by reason of death or
“permanent and total disability” (within the meaning of Section 22(e)(3) of the Code) or after the
Grantee’s attainment of Normal Retirement, any Restricted Stock issued to such Grantee that has not
vested, or with respect to
which all applicable restrictions and conditions have not lapsed, shall immediately be deemed
forfeited, unless the Board, in its discretion, determines otherwise; provided, however, that,
subject to Section 6(b), in the event the Corporation or Subsidiary, as applicable, terminates the
Grantee’s employment without “cause” (as defined above) and this termination occurs prior to full
vesting and the lapse of all applicable restrictions and conditions, the vested portion of the
Grantee’s Restricted Stock shall be determined by multiplying the number of shares of Restricted
Stock subject to the award by a fraction, the numerator of which is the number of full calendar
months during which the Grantee was employed by the Corporation or a Subsidiary after the vesting
commencement date specified in the Award Agreement and the

12

 

denominator of which is the number of
months of service required to achieve full vesting and the lapse of all applicable restrictions and
conditions.

     With respect to an award of Performance-Based Stock, upon termination of the employment or
service of a Grantee with the Corporation or a Subsidiary other than by reason of death or
“permanent and total disability” (within the meaning of Section 22(e)(3) of the Code), any
Performance-Based Stock issued to such Grantee that has not vested, or with respect to which all
applicable restrictions and conditions have not lapsed, shall immediately be deemed forfeited,
unless the Board, in its discretion, determines otherwise; provided, however, that, subject to
Section 6(c), in the event the Corporation or Subsidiary, as applicable, terminates the Grantee’s
employment without “cause” (as defined above) and this termination occurs prior to completion of
the performance period, shares of Performance-Based Stock granted to such Grantee shall be eligible
to become fully vested if and when the ordinary performance period ends, provided, and only to the
extent that, the applicable performance criteria are satisfied. To the extent the criteria are
satisfied, the shares that actually shall vest shall be the number of shares issuable upon the
attained level of performance multiplied by a fraction, the numerator of which is the number of
full calendar months during which the Grantee was employed by the Corporation or a Subsidiary after
the vesting commencement date specified in the Award Agreement and the denominator of which is the
number of months of service required to achieve full vesting of the Performance-Based Stock award.

     Upon forfeiture of Restricted Stock or Performance-Based Stock, the Grantee shall have no
further rights with respect to such Restricted Stock or Performance-Based Stock, including but not
limited to any right to vote Restricted Stock or Performance-Based Stock or any right to receive
dividends with respect to such shares of Restricted Stock or Performance-Based Stock. Whether a
leave of absence or leave on military or government service shall constitute a termination of
employment or service for purposes of the Plan shall be determined by the Board, which
determination shall be final and conclusive. For purposes of the Plan, a termination of employment
or service with the Corporation or a Subsidiary shall not be deemed to occur if immediately
thereafter the Grantee is employed with the
Corporation or any Subsidiary or is serving as a Subsidiary Director or Non-Employee Director.

     (b) Non-Employee Directors and Subsidiary Directors. Any Option or SAR granted to a
Non-Employee Director or Subsidiary Director shall not terminate until the expiration of the term
of the Option or SAR regardless of whether the Non-Employee Director or Subsidiary Director
continues to serve as a director of the Corporation, unless earlier terminated pursuant to Section
10(a) above; provided, however, that the Board may provide, by inclusion of appropriate language in
an Award Agreement, that a Grantee may (subject to the general limitations on exercise set forth in
Section 10(b) above), in the event of termination of service of

13

 

the Grantee with the Corporation as
a Non-Employee Director or Subsidiary Director, exercise an Option or SAR, in whole or in part,
within a specified period of time subsequent to such termination of service and before termination
of the Option or SAR as provided in Section 10(a) above, either subject to or without regard to any
installment limitation on exercise imposed pursuant to Section 10(b) above.

13. RIGHTS IN THE EVENT OF DEATH, DISABILITY OR RETIREMENT.

     (a) Death of an Employee. If a Grantee (other than a Non-Employee Director or Subsidiary
Director) dies while employed by the Corporation or a Subsidiary, the executors or administrators
or legatees or distributees of such Grantee’s estate shall have the right (subject to the general
limitations on exercise set forth in Section 10(b) above), at any time subsequent to such Grantee’s
death and before termination of the Option as provided in Section 10(a) above, to exercise any
Option or SAR held by such Grantee at the date of such Grantee’s death, without regard to any
installment limitation on exercise imposed pursuant to Section 10(b) above. If a Grantee dies
while employed by the Corporation or a Subsidiary, except as provided in the applicable Award
Agreement, all shares of Restricted Stock granted to such Grantee shall fully vest on the date of
death, and the shares of Stock represented thereby shall be deliverable in accordance with the
terms of the Plan to the executors, administrators, legatees or distributees of the Grantee’s
estate. If a Grantee dies while employed by the Corporation or a Subsidiary, except as provided
in the applicable Award Agreement, shares of Performance-Based Stock granted to such Grantee shall
fully vest if and when the ordinary performance period for the award ends, provided, and only to
the extent that, the applicable performance criteria are satisfied. The preceding sentence also
applies to any Restricted Stock otherwise issuable in connection with such Performance-Based Stock
The shares of Stock deliverable in accordance with the terms of this Section 13(a) shall be
delivered to the executors, administrators, legatees or distributees of the Grantee’s estate.

     (b) Disability of an Employee. If a Grantee (other than a Non-Employee Director or Subsidiary
Director) terminates employment or service with the
Corporation or a Subsidiary by reason of the “permanent and total disability” (within the meaning
of Section 22(e)(3) of the Code) of such Grantee, then such Grantee shall have the right (subject
to the general limitations on exercise set forth in Section 10(b) above), at any time subsequent to
such termination of employment or service and before termination of the Option or SAR as provided
in Section 10(a) above, to exercise, in whole or in part, any such Option or SAR held by such
Grantee at the date of such termination of employment or service, without regard to any installment
limitation on exercise imposed pursuant to Section 10(b) above. If a Grantee terminates employment
or service with the Corporation or a Subsidiary by reason of “permanent and total disability” (as
defined above), except as provided in the applicable Award Agreement, all shares of Restricted
Stock granted to such Grantee shall fully vest upon such termination of

14

 

employment. If a Grantee
terminates employment or service with the Corporation or a Subsidiary by reason of “permanent and
total disability” (as defined above), except as provided in the applicable Award Agreement, shares
of Performance-Based Stock granted to such Grantee shall fully vest if and when the ordinary
performance period for the award ends, provided, and only to the extent that, the applicable
performance criteria are satisfied. Whether a termination of employment or service is to be
considered by reason of “permanent and total disability” for purposes of this Plan shall be
determined by the Board, which determination shall be final and conclusive.

     (c) Death or Disability of a Non-Employee Director or Subsidiary Director. Any Option or SAR
granted to a Non-Employee Director or Subsidiary Director shall not terminate until the expiration
of the term of the Option or SAR regardless of whether the Non-Employee Director or Subsidiary
Director continues to serve as a director of the Corporation or Subsidiary, unless earlier
terminated pursuant to Section 10(a) above; provided, however, that the Board may provide, by
inclusion of appropriate language in an Award Agreement, that a Grantee (or, in the event of the
death of the Grantee, the executors or administrators or legatees or distributees of such Grantee’s
estate) may (subject to the general limitations on exercise set forth in Section 10(b) above), in
the event of termination of service of the Grantee with the Corporation as a Non-Employee Director
or Subsidiary Director because of death or disability, exercise an Option or SAR, in whole or in
part, within a specified period of time subsequent to such termination of service and before
termination of the Option or SAR as provided in Section 10(a) above, either subject to or without
regard to any installment limitation on exercise imposed pursuant to Section 10(b) above.

     (d) Normal Retirement of an Employee. Subject to Sections 6(a) and 6(d), as applicable, if a
Grantee (other than a Non-Employee Director or Subsidiary Director) terminates employment or
service with the Corporation or a Subsidiary by reason of Normal Retirement of such Grantee, then
such Grantee shall have the right, at any time after such termination of employment or service and
before
termination of the Option or SAR as provided in Section 10(a) above, to exercise, in whole or in
part, any Option or SAR held by such Grantee at the date of such termination of employment or
service, without regard to any installment limitation on exercise imposed pursuant to Section 10(b)
above. Subject to Section 6(b), if a Grantee (other than a Non-Employee Director or Subsidiary
Director) terminates employment or service with the Corporation or a Subsidiary by reason of Normal
Retirement of such Grantee, then the restrictions on such Grantee’s Restricted Stock shall lapse
and the Grantee shall be entitled to the shares of Stock as specified in the Grantee’s Award
Agreement. Subject to Section 6(c) and notwithstanding any provision to the contrary in the Plan,
if a Grantee (other than a Non-Employee Director or Subsidiary Director) terminates employment with
the Corporation or a Subsidiary by reason of Normal Retirement, shares of

15

 

Performance-Based Stock
granted to such Grantee shall fully vest if and when the ordinary performance period for the award
ends, provided, and only to the extent that, the applicable performance criteria are satisfied.

14. USE OF PROCEEDS.

     The proceeds received by the Corporation from the sale of Stock pursuant to Incentive Awards
granted under the Plan shall constitute general funds of the Corporation.

15. REQUIREMENTS OF LAW.

     The Corporation shall not be required to sell or issue any shares of Stock under any Incentive
Award if the sale or issuance of such shares would constitute a violation by the individual
exercising the Incentive Award or the Corporation of any provisions of any law or regulation of any
governmental authority, including without limitation any federal or state securities laws or
regulations. Specifically in connection with the Securities Act of 1933 as now in effect or as
hereafter amended (the “Securities Act”), upon exercise of any Option or SAR, unless a registration
statement under the Securities Act is in effect with respect to the shares of Stock covered by such
Option or SAR, the Corporation shall not be required to sell or issue such shares unless the Board
has received evidence satisfactory to it that the holder of such Option or SAR may acquire such
shares pursuant to an exemption from registration under the Securities Act. Any determination in
this connection by the Board shall be final, binding, and conclusive.

16. AMENDMENT AND TERMINATION OF THE PLAN.

     The Board may, at any time and from time to time, amend, suspend or terminate the Plan as to
any shares of Stock as to which Incentive Awards have not been granted; provided, however, that no
amendment by the Board shall, without approval by a majority of the votes cast at a duly held
meeting of the shareholders of the Corporation at which a quorum representing a majority of all
outstanding
voting stock is, either in person or by proxy, present and voting on the amendment, (a) materially
change the requirements as to eligibility to receive Incentive Awards; (b) increase the maximum
number of shares of Stock in the aggregate that may be sold or otherwise awarded pursuant to
Incentive Awards granted under the Plan (except as permitted under Section 17 hereof); (c) change
the minimum Option Price set forth in Section 9 hereof or the minimum grant price for a SAR set
forth in Section 6(d) hereof (except as permitted under Section 17 hereof); (d) increase the
maximum period during which Options or SARs may be exercised; (e) extend the term of the Plan; or
(f) materially increase the benefits accruing to eligible individuals under the Plan. Except as
permitted under Section 17 hereof, no amendment, suspension or termination of the Plan shall,
without the consent of the

16

 

holder of the Incentive Award, impair rights or obligations under any
Incentive Award theretofore granted under the Plan.

17. EFFECT OF CHANGES IN CAPITALIZATION.

     (a) Changes in Stock. If the outstanding shares of Stock are increased or decreased or
changed into or exchanged for a different number or kind of shares or other securities of the
Corporation by reason of any recapitalization, reclassification, stock split-up, combination of
shares, exchange of shares, stock dividend or other distribution payable in capital stock, or other
increase or decrease in such shares effected without receipt of consideration by the Corporation,
occurring after the effective date of the Plan, the number and kinds of shares for the purchase of
which Incentive Awards may be granted under the Plan shall be adjusted proportionately and
accordingly by the Corporation. In addition, the number and kind of shares for which Options or
SARs are outstanding shall be adjusted proportionately and accordingly so that the proportionate
interest of the holder of the Option immediately following such event shall, to the extent
practicable, be the same as immediately before such event. Any such adjustment in outstanding
Options shall not change the aggregate Option Price or grant price payable with respect to shares
subject to the unexercised portion of the Option or SAR outstanding, but shall include a
corresponding proportionate adjustment in the Option Price or grant price per share.

     (b) Reorganization in Which the Corporation Is the Surviving Corporation. Subject to
Subsection (c) hereof, if the Corporation shall be the surviving corporation in any reorganization,
merger, or consolidation of the Corporation with one or more other corporations, any Incentive
Award theretofore granted pursuant to the Plan shall pertain to and apply to the securities to
which a holder of the number of shares of Stock subject to such Incentive Award would have been
entitled immediately following such reorganization, merger, or consolidation, and, in the case of
an Option or SAR, with a corresponding proportionate adjustment of the Option Price or grant price
per share so that the aggregate Option Price or grant price thereafter shall be the same as the
aggregate Option Price or grant price of
the shares remaining subject to the Option immediately before such reorganization, merger, or
consolidation.

     (c) Reorganization in Which the Corporation Is Not the Surviving Corporation or Sale of Assets
or Stock. Upon the dissolution or liquidation of the Corporation, or upon a merger, consolidation
or reorganization of the Corporation with one or more other corporations in which the Corporation
is not the surviving corporation, or upon a sale of substantially all of the assets of the
Corporation to another corporation, or upon any transaction (including, without limitation, a
merger or reorganization in which the Corporation is the surviving corporation) approved by the
Board which results in any person or entity owning 80 percent or more of the combined voting power
of all classes of stock of the

17

 

Corporation, the Plan and all Incentive Awards outstanding hereunder
shall terminate, except to the extent provision is made in writing in connection with such
transaction for the continuation of the Plan and/or the assumption of the Incentive Awards
theretofore granted, or for the substitution for such Incentive Awards of new options, stock
appreciation rights, Restricted Stock, or Performance-Based Stock as applicable, covering the stock
of a successor corporation, or a parent or subsidiary thereof, with appropriate adjustments as to
the number and kinds of shares and, in the case of Options and SARs, exercise or grant prices, in
which event the Plan and Incentive Awards theretofore granted shall continue in the manner and
under the terms so provided. In the event of any such termination of the Plan, all restrictions on
Restricted Stock and Performance-Based Stock shall lapse and the Grantee shall become the owner
outright of the Stock and each individual holding an Option or SAR shall have the right, for 30
days immediately prior to the occurrence of such termination, to exercise such Option in whole or
in part, without regard to any limitation on exercise imposed pursuant to Section 10(b) above,
unless otherwise explicitly provided in the Award Agreement. The Board shall send written notice
of an event that will result in such a termination to all individuals who hold Options or SARs not
later than the time at which the Corporation gives notice thereof to its shareholders.

     (d) Change of Control Accelerated Vesting. With the exception of any officer who declines to
execute the amendment to the Change of Control Employment Agreement approved by the Board on
January 31, 2005, and except as may otherwise be explicitly provided in an Award Agreement, even if
Incentive Awards are assumed or continued in connection with such transaction, Incentive Awards
outstanding to eligible individuals who continue to render services to the Corporation or a
Subsidiary immediately prior to a Change of Control shall become fully vested, and, in the case of
Options or SARs, exercisable, upon the Change of Control; provided that any Performance-Based Stock
award that shall become fully vested pursuant to this Section 17(d) shall vest at the greater of
(i) the target level determined under the Award Agreement, or (ii) the amount determined as of the
Valuation Date as though the Valuation Date were the natural end of the
performance period. For this purpose, Valuation Date means the day immediately prior to the Change
of Control or, if earlier, but contingent on consummation of the Change of Control, the date
immediately prior to the signing of a definitive agreement that would result in a Change of
Control.

     (e) Adjustments. Adjustments under this Section 17 related to Stock or securities of the
Corporation shall be made by the Board, whose determination in that respect shall be final,
binding, and conclusive. No fractional shares of Stock or units of other securities shall be
issued pursuant to any such adjustment, and any fractions resulting from any such adjustment shall
be eliminated in each case by rounding downward to the nearest whole share or unit.

18

 

     (f) No Limitations on Corporation. The grant of an Incentive Award pursuant to the Plan shall
not affect or limit in any way the right or power of the Corporation to make adjustments,
reclassifications, reorganizations or changes of its capital or business structure or to merge,
consolidate, dissolve or liquidate, or to sell or transfer all or any part of its business or
assets.

     (g) Distribution of Stock. All distributions, if any, received by a Grantee with respect to
Restricted Stock or Performance-Based Stock as a result of any stock split, stock dividend,
combination of shares, or other similar transaction shall be subject to the restrictions applicable
to the original grant.

18. CHANGE OF CONTROL DEFINED.

     (a) General Rule. For the purpose of this Plan, a “Change of Control” shall mean the
occurrence of any one of the events described in Sections 18(b) through 18(e) below.

     (b) Stock Acquisition. A Change of Control shall occur upon the acquisition by any
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”)) (a “Person”) of beneficial ownership (within
the meaning of Rule 13d-3 promulgated under the Exchange Act) of 20% or more of either (i) the then
outstanding shares of common stock of the Corporation (the “Outstanding Corporation Common Stock”)
or (ii) the combined voting power of the then outstanding voting securities of the Corporation
entitled to vote generally in the election of directors (the “Outstanding Corporation Voting
Securities”); provided, however, that for purposes of this subsection (b), the following
acquisitions shall not constitute a Change of Control: (i) any acquisition directly from the
Corporation, (ii) any acquisition by the Corporation, (iii) any acquisition by any employee benefit
plan (or related trust) sponsored or maintained by the Corporation or any company controlled by the
Corporation or (iv) any acquisition by any corporation pursuant to
a transaction which complies with clauses (i), (ii) and (iii) of subsection (d) of this Section 18.

     (c) Board Change. A Change of Control shall occur when individuals who, as of January 31,
2005, constitute the Board (the “Incumbent Board”) cease for any reason to constitute at least a
majority of the Board; provided, however, that any individual becoming a director subsequent to the
date hereof whose election, or nomination for election by the Corporation’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 an
actual or threatened election contest with respect to the election or removal of directors or other
actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the
Board.

19

 

     (d) Certain Other Business Transactions. A Change of Control shall occur upon consummation of
a reorganization, merger or consolidation or sale or other disposition of all or substantially all
of the assets of the Corporation (a “Business Combination”), in each case, unless, following such
Business Combination, (i) all or substantially all of the individuals and entities who were the
beneficial owners, respectively, of the Outstanding Corporation Common Stock and Outstanding
Corporation Voting Securities immediately prior to such Business Combination beneficially own,
directly or indirectly, more than 50% 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 Business
Combination (including, without limitation, a company which as a result of such transaction owns
the Corporation or all or substantially all of the Corporation’s assets either directly or through
one or more subsidiaries) in substantially the same proportions as their ownership, immediately
prior to such Business Combination of the Outstanding Corporation Common Stock and Outstanding
Corporation Voting Securities, as the case may be, (ii) no Person (excluding any corporation
resulting from such Business Combination or any employee benefit plan (or related trust) of the
Corporation or such corporation resulting from such Business Combination) beneficially owns,
directly or indirectly, 20% or more of, respectively, the then outstanding shares of common stock
of the corporation resulting from such Business Combination or the combined voting power of the
then outstanding voting securities of such corporation except to the extent that such ownership
existed prior to the Business Combination and (iii) at least a majority of the members of the board
of directors of the corporation resulting from such Business Combination were members of the
Incumbent Board at the time of the execution of the initial agreement, or of the action of the
Board, providing for such Business Combination.

     (e) Liquidation or Dissolution. A Change of Control shall occur upon approval by the
shareholders of the Corporation of a complete liquidation or dissolution of the Corporation.

19. DISCLAIMER OF RIGHTS.

     No provision in the Plan or in any Incentive Award granted or Award Agreement entered into
pursuant to the Plan shall be construed to confer upon any individual the right to remain in the
employ or service of the Corporation or any Subsidiary, or to interfere in any way with the right
and authority of the Corporation or any Subsidiary either to increase or decrease the compensation
of any individual at any time, or to terminate any employment or other relationship between any
individual and the Corporation or any Subsidiary.

20

 

20. NONEXCLUSIVITY OF THE PLAN.

     Neither the adoption of the Plan nor the submission of the Plan to the shareholders of the
Corporation for approval shall be construed as creating any limitations upon the right and
authority of the Board to adopt such other incentive compensation arrangements (which arrangements
may be applicable either generally to a class or classes of individuals or specifically to a
particular individual or individuals) as the Board in its discretion determines desirable,
including, without limitation, the granting of stock options otherwise than under the Plan.

21. WITHHOLDING TAXES.

     The Corporation or any Subsidiary, as the case may be, shall have the right to deduct from
payments of any kind otherwise due a Grantee any Federal, state, or local taxes of any kind
required by law to be withheld with respect to the vesting of or other lapse of restrictions
applicable to Incentive Awards or with respect to the exercise of Options or SARs. At the time of
such vesting, lapse, or exercise, the Grantee shall pay to the Corporation or such Subsidiary, as
the case may be, any amount that the Corporation or the Subsidiary may reasonably determine to be
necessary to satisfy such withholding obligation. Subject to the prior approval of the Corporation
or any Subsidiary, as the case may be, which may be withheld in the sole discretion thereof, the
Grantee may elect to satisfy such obligations, in whole or in part, (i) by causing the Corporation
or such Subsidiary to withhold shares of Stock otherwise deliverable under a Restricted Stock or
Performance-Based Stock award or a SAR or by withholding from the Stock to be issued upon the
exercise of an Option or (ii) by delivering to the Corporation or such Subsidiary shares of Stock
already owned by the Grantee. The shares of Stock so delivered or withheld shall have a fair
market value equal to the withholding obligations. The fair market value of the shares of Stock
used to satisfy the withholding obligation shall be determined by the
Corporation or any Subsidiary as of the date that the amount of tax to be withheld is determined.

*       *      *

21<PAGE>

                                                                    EXHIBIT 10.1

                                AMENDMENT NO. 14

                                       TO

                        THE A319/A320 PURCHASE AGREEMENT
                         DATED AS OF SEPTEMBER 12, 1997

                                     BETWEEN

                                 AVSA, S.A.R.L.

                                       AND

                           AMERICA WEST AIRLINES, INC.

This Amendment No. 14 (hereinafter referred to as the "AAmendment") entered into
as of August 24, 2006 by and between, AIRBUS S.A.S. a societe par actions
simplifiee (formerly AVSA, S.A.R.L. a societe a responsabilite limitee),
organized and existing under the laws of the Republic of France, having its
registered office located at 1, Rond Point Maurice Bellonte, 31700 Blagnac,
France (hereinafter referred to as the "USeller") and AMERICA WEST AIRLINES,
INC. (the "Buyer") a corporation organized and existing under the laws of the
State of Delaware, United States of America, having its principal corporate
office located at 4000 East Sky Harbor Boulevard, Phoenix, Arizona 85034, U.S.A.

                                   WITNESSETH:

WHEREAS, the Buyer and the Seller have entered into an A319/A320 Purchase
Agreement, dated as of September 12, 1997 (which agreement, as previously
amended by and supplemented with all Exhibits, Appendices, Letter Agreements and
amendments, including Amendment No. 1 executed on April 27, 1998, Amendment No.
2 executed on December 9, 1998 together with Letter Agreement No. 1 to Amendment
No. 2 executed on May 24, 1999, Amendment No. 3 together with all Letter
Agreements thereto executed on October 14, 1999 and together with Letter
Agreement to Amendment No. 3 executed on May 10, 2001, Amendment No. 4 executed
on July 1, 2000 together with Letter Agreement to Amendment No. 4 executed on
July 28, 2000, Amendment No. 5 executed on October 12, 2000 together with Letter
Agreement to Amendment No. 5 executed on October 26, 2000, Amendment No. 6
executed on October 28, 2002, Amendment No. 7 together with all Letter
Agreements thereto executed on July 30, 2004, Amendment No. 8 executed on
October 1, 2004, Amendment No. 9 executed on September 27, 2005, Amendment No.
10 executed on September 27, 2005, Amendment No. 11 executed on October 11,
2005, Amendment No. 12 executed on February 9, 2006 and Amendment No. 13
executed on April 28, 2006 (the "Agreement"), which Agreement relates to, inter
alia, the sale by the Seller and the purchase by the Buyer of certain firmly
ordered Airbus A318-100, A319-100 and A320-200 model aircraft.

AWE  - A319/A320 - AMENDMENT NO. 14

**   Confidential Treatment Requested.

                                     AM 14-1

<PAGE>

WHEREAS, the Buyer agrees to place a firm order with the Seller for seventeen
(17) Airbus A319 Aircraft (the "Amendment 14 A319 Aircraft") and two (2) Airbus
A320 Aircraft (the "Amendment 14 A320 Aircraft") (collectively, the "Amendment
14 Aircraft") concurrent with USA's cancellation of an equal number of firmly
ordered A320 family aircraft under the Seller's purchase agreement with USA.

WHEREAS, capitalized terms used herein and not otherwise defined in this
Amendment will have the meanings assigned to them in the Agreement. The terms
"herein," "hereof," and "hereunder" and words of similar import refer to this
Amendment.

NOW, THEREFORE IT IS AGREED AS FOLLOWS:

1-   DEFINITIONS

     (a) The following terms are used in this Amendment as defined below and
     such definitions are added to the Agreement:

     Amendment 14 A319 Aircraft - any or all of the Airbus A319-100 model
     aircraft to be sold by the Seller to the Buyer pursuant to Amendment 14
     (but not including any A319 Aircraft or Amendment 7 A319 Aircraft on firm
     order prior to the date thereof), together with all components, equipment,
     parts and accessories installed in or on such aircraft and the Amendment 14
     A319 Propulsion System installed thereon, as described in Paragraph 2 of
     Amendment 14.

     Amendment 14 A319 Airframe - any Amendment 14 A319 Aircraft, excluding
     Amendment 14 A319 Propulsion System therefor, but including nacelles and
     thrust reversers, as described in Paragraph 2 of Amendment 14.

     Amendment 14 A319 Propulsion System - the two (2) ** powerplants to be
     installed on an Amendment 14 A319 Aircraft at delivery, each composed of
     the powerplant (as such term is defined in Chapters 70-80 of ATA
     iSpecification 2200 (Revision 2000.1), but limited to the equipment,
     components, parts and accessories included in the powerplant, as so
     defined), that have been sold to the Manufacturer by **, but specifically
     not including a nacelle and thrust reverser for each such powerplant.

     Amendment 14 A320 Aircraft - any or all of the Airbus A320-200 model
     aircraft to be sold by the Seller to the Buyer pursuant to Amendment 14
     (but not including any A320 Aircraft or Amendment 7 A320 Aircraft on firm
     order prior to the date thereof), together with all components, equipment,
     parts and accessories installed in or on such aircraft and the Amendment 14
     A320 Propulsion System installed thereon, as described in Paragraph 3 of
     Amendment 14.

     Amendment 14 A320 Airframe - any Amendment 14 A320 Aircraft, excluding
     Amendment 14 A320 Propulsion System therefor, but including nacelles and
     thrust reversers, as described in Paragraph 3 of Amendment 14.

     Amendment 14 A320 Propulsion System - the two (2) ** powerplants to be
     installed on an Amendment 14 A320 Aircraft at delivery, each composed of
     the powerplant (as

AWE  - A319/A320 - AMENDMENT NO. 14

**   Confidential Treatment Requested.

                                     AM 14-2

<PAGE>

     such term is defined in Chapters 70-80 of ATA iSpecification 2200 (Revision
     2000.1), but limited to the equipment, components, parts and accessories
     included in the powerplant, as so defined), that have been sold to the
     Manufacturer by **, but specifically not including a nacelle and thrust
     reverser for each such powerplant.

     Amendment 14 Aircraft - any Amendment 14 A319 Aircraft, Amendment 14 A320
     Aircraft, Converted Amendment 14 A320 Aircraft or Converted Amendment 14
     A321 Aircraft.

     Converted Amendment 14 A320 Aircraft - any Amendment 14 A320 Aircraft which
     has been converted from an Amendment 14 A319 Aircraft pursuant to Paragraph
     11.2 of Amendment 14.

     Converted Amendment 14 A321 Aircraft - any or all of the Airbus A321-200
     model aircraft to be sold by the Seller to the Buyer pursuant to the
     Amendment 14 (but not including any A321 Additional Aircraft as defined in
     Amendment 3 or Amendment 7 A321 Aircraft prior to the date of the
     Amendment), together with all components, equipment, parts and accessories
     installed in or on such aircraft and the Converted Amendment 14 A321
     Propulsion System installed thereon, as described in Paragraph 4 of this
     Amendment.

     Converted Amendment 14 A321 Propulsion System - the two (2) ** powerplants
     to be installed on an Converted Amendment 14 A321 Aircraft at delivery,
     each composed of the powerplant (as such term is defined in Chapters 70-80
     of ATA iSpecification 2200 (Revision 2000.1), but limited to the equipment,
     components, parts and accessories included in the powerplant, as so
     defined), that have been sold to the Manufacturer by **, but specifically
     not including a nacelle and thrust reverser for each such powerplant.

     Converted Amendment 14 Aircraft - any Converted Amendment 14 A320 Aircraft
     or Converted Amendment 14 A321 Aircraft.

     Converted Rescheduled A320 Aircraft - any Rescheduled A319 Aircraft which
     has been converted to an A320 Aircraft pursuant to Paragraph 11.1 of
     Amendment 14. For the avoidance of doubt, any such Converted Rescheduled
     A320 Aircraft will be equipped with Amendment 7 A320 Propulsion System.

     Converted Rescheduled A321 Aircraft - any Rescheduled A319 Aircraft or
     Rescheduled A320 Aircraft which has been converted to an A321 Aircraft
     pursuant to Paragraph 11.1 of Amendment 14. For the avoidance of doubt, any
     such Converted Rescheduled A321 Aircraft will be equipped with Amendment 7
     A321 Propulsion System as defined in Amendment No. 7.

     Converted Rescheduled Aircraft - any Converted Rescheduled A320 Aircraft or
     Converted Rescheduled A321 Aircraft.

     Rescheduled A319 Aircraft - any Amendment 7 A319 Aircraft (as defined in
     Amendment No. 7) which has been rescheduled pursuant to Amendment No. 9.
     For

AWE  - A319/A320 - AMENDMENT NO. 14

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     the avoidance of doubt, any such Rescheduled A319 Aircraft will be equipped
     with Amendment 7 A319 Propulsion System as defined in Amendment No. 7 to
     the Agreement.

     Rescheduled A320 Aircraft - any Amendment 7 A320 Aircraft (as defined in
     Amendment No. 7) which has been rescheduled pursuant to Amendment No. 9.
     For the avoidance of doubt, any such Rescheduled A320 Aircraft will be
     equipped with Amendment 7 A320 Propulsion System as defined in Amendment
     No. 7.

     Simulator No. 3 - means that certain A320 Simulator identified as serial
     number 2NQ2-252, which has the "ready for training date" of July 1, 1999
     and FAA identification number 631 provided to U.S. Airways, Inc pursuant to
     the USA Agreement.

     (b) Section 1.1 of the Agreement is further amended by inserting, at the
     end thereof, the following:

     "Except as otherwise expressly provided, references in this Agreement to an
     Exhibit, Schedule, Amendment, Article, Section, subsection or clause refer
     to the appropriate Exhibit, Schedule or Amendment to, or Article, Section,
     subsection or clause in this Agreement."

2-   AMENDMENT 14 A319 AIRCRAFT

2.1  The Amendment 14 A319 Aircraft will be deemed an Aircraft or an A319
     Aircraft (as the context requires) but only for the purpose of the
     following provisions, exhibits and letter agreements described in Paragraph
     2.1A, B and C below. The Amendment 14 A319 Propulsion System will be as
     defined in this Amendment.

     A.   Main Agreement Provisions Applicable to the Amendment 14 A319 Aircraft

          (i)  Clause 1, as amended by Amendment 3 and Amendment 7.

          (ii) Subclauses 2.1 and 2.3

          (iii) Clause 3 (except that Subclause 3.2 is replaced by Paragraph 2
               of Amendment 9 and such paragraph will be deemed to apply to the
               Amendment 14 A319 Aircraft)

          (iv) Subclauses 4.4 and 4.5

          (v)  Clauses 5, 6, 7 and 8

          (vi) Subclauses 9.3, 9.4, 9.5 (except that references to Subclause 9.1
               therein shall refer to the applicable Rescheduled A319 Aircraft,
               Amendment 7 A319 Aircraft and Amendment 14 A319 Aircraft delivery
               schedule in Paragraph 6.1) and 9.6

          (vii) Clauses 10, 11, 12 and 13

          (viii) Clause 14, except that the first sentence of Subclause 14.5.1
               is replaced by the following sentence: "Unless otherwise
               specifically stated, revision service will be offered ** ."

          (ix) Clause 15, ** .

          (x)  Clauses 16 and 17

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          (xi) Clause 18 (except that reference to Clause 9 shall mean the
               Amendment 14 A319 Aircraft Delivery Schedule set forth in
               Paragraph 6.1 and that reference to Exhibits B1 and B2 shall mean
               the SSBFE mutually agreed by the parties, if any.

          (xii) Clauses 19, 20, 21 and 22

     B.   Exhibits to the Agreement Applicable to the Amendment 14 A319 Aircraft

          (i)  Exhibit B-3 of Amendment 7

          (ii) Exhibit C

          (iii) Exhibit F

          (iv) Exhibit G of Amendment 3 to the Agreement (for Amendment 14 A319
               Aircraft with Amendment 7 A319 Propulsion System installed only).

          (v)  Exhibit H of Amendment 7

     C.   Letter Agreements to the Agreement Applicable to the Amendment 14 A319
          Aircraft

          (i)  Letter Agreement No. 1, provided however, that the term "first
               Aircraft" as set forth in Subparagraph 5.2.5 and in Subparagraph
               10.1 of Letter Agreement No. 1 will mean the first Aircraft
               delivered under the Agreement.

          (ii) Letter Agreement No. 2 to Amendment 7, Paragraph 5 only.

          (iii) Letter Agreement No. 3 to the Agreement, Paragraph 4 only.

          (iv) Letter Agreement No. 3 to Amendment No. 7 to the Agreement, as it
               applies to Amendment 7 A319 Aircraft.

          (v)  Letter Agreement No. 5, Paragraph 5, excluding Subparagraph
               5.1.2.

          (vi) Letter Agreement No. 6, provided however that the references to
               Letter Agreements No. 2 and 3 in Paragraphs 5 and 6 of Letter
               Agreement No. 6 will be deemed to refer to Letter Agreement No. 3
               to Amendment 7 respectively and provided further that the words
               "after taking into account the provisions of Paragraph 5 of
               Letter Agreement 3 to the Agreement" at the end of Subparagraph
               6.2 will be deleted.

          (vii) Letter Agreement No. 8 or Letter Agreement No. 8A of Amendment
               11, as applicable.

          (viii) Letter Agreement No. 10, provided however, that, for the
               avoidance of doubt, the terms Aircraft or A319 Aircraft as set
               forth therein will be deemed to include all A319 Aircraft firmly
               purchased under the Agreement, all A319 Additional Aircraft
               purchased under Amendment 3, all Amendment 7 A319 Aircraft and
               all Amendment 14 A319 Aircraft, and (ii) the terms Airframe or
               A319 Airframe as set forth therein will be deemed to include the
               Airframe on all A319 Aircraft firmly purchased under the
               Agreement and on all A319 Additional Aircraft purchased under
               Amendment No. 3, all Amendment 7 A319 Aircraft and on all
               Amendment 14 A319 Aircraft.

2.2  The following specific additional provisions will apply to the Amendment 14
     A319 Aircraft:

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     A.1  Sale and Purchase

          Intentionally Left Blank

     A.2  Specification

          The Amendment 14 A319 Aircraft will be manufactured in accordance with
          the Latest Standard Specification, as may be modified from time to
          time, as set forth in Paragraph 2 of Amendment No. 9.

     A.3  Base Price

     A.3.1 Base Price of the Amendment 14 A319 Aircraft

          The "Base Price" of each Amendment 14 A319 Aircraft is the sum of:

          (i)  ** , and

          (ii) ** .

     A.3.2 Base Price of the Amendment 7 A319 Airframe

     A.3.2.1 The Base Price of the Amendment 7 A319 Airframe, as forth in
          Paragraph 4.2.A.3.2 of Amendment 7 (excluding the Amendment 14 A319
          Propulsion System), is:

          US $ **

          (Dollars - ** ).

     A.3.2.2 The Base Price of the Amendment 7 A319 Airframe is quoted in
          delivery conditions prevailing in ** . ** .

     A.3.3 Base Price of the Amendment 14 A319 Propulsion System

          The Base Price of the Amendment 14 A319 Propulsion System, at delivery
          conditions prevailing in ** is:

          US $ **

          (Dollars - ** ).

          The Amendment 14 A319 Propulsion System Base Price has been calculated
          from the reference price indicated by ** of US $ ** in accordance with
          delivery conditions prevailing in ** (the " ** Reference Price").

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          The ** Reference Price is subject to adjustment to the date of
          delivery of the Amendment 14 A319 Aircraft in accordance with the **
          Propulsion System Price Revision Formula set forth in Exhibit I
          annexed hereto.

     A.3.4 Final Contract Price

          The Final Contract Price of Amendment 14 A319 Aircraft will be the sum
          of:

          (i)  ** ;

          (ii) ** ;

          (iii) ** ; and

          (iv) any other amount resulting from any other provisions of this
               Agreement as amended and/or any other written agreement between
               the Buyer and the Seller relating to the Amendment 14 A319
               Aircraft and specifically making reference to the Final Contract
               Price of an Amendment 14 A319 Aircraft.

     A.4  Amendment 14 A319 Aircraft Predelivery Payments

          The Predelivery Payments for the Amendment 14 A319 Aircraft are as set
          forth in Paragraph 9 below.

     A.5  **

          See Paragraph 2.1C (iii) and (iv) above.

     A.6  Amendment 14 Firm A319 Aircraft Delivery Schedule

          The Amendment 14 A319 Aircraft Delivery Schedule is set forth in
          Paragraph 6 below.

     A.7  Amendment 14 A319 Aircraft Order Flexibility

          See Paragraph 2.1 C (ii) above and Paragraph 11 below.

     A.8  Amendment 14 A319 Aircraft Training and Product Support Matters

          Intentionally Left Blank

     A.9  **

          See Paragraph 2.1C (vii) above.

     A.10 **

AWE  - A319/A320 - AMENDMENT NO. 14

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<PAGE>

          Intentionally Left Blank

3-   AMENDMENT 14 A320 AIRCRAFT

3.1  The Amendment 14 A320 Aircraft will be deemed an Aircraft or an A320
     Aircraft (as the context requires) but only for the purposes of the
     following provisions, exhibits and letter agreements described in
     Paragraphs 3.1 A, B and C below. The Amendment 14 A320 Propulsion System
     will be as defined in this Amendment.

     A.   Main Agreement Provisions Applicable to the Amendment 14 A320 Aircraft

          (i)  Clause 1, as amended by Amendment 3 and Amendment 7

          (ii) Subclauses 2.1 and 2.3

          (iii) Clause 3 (except that Subclause 3.2 is replaced by Paragraph 2
               of Amendment 9 and such paragraph will be deemed to apply to the
               Amendment 14 A320 Aircraft)

          (iv) Subclauses 4.4 and 4.5

          (v)  Clauses 5, 6, 7 and 8

          (vi) Subclauses 9.3, 9.4, 9.5 (except the reference to Subclause 9.2
               shall be deemed to be reference to the applicable Amendment 14
               A320 Aircraft delivery schedule set forth in Paragraph 6.2
               herein) and 9.6

          (vii) Clauses 10, 11, 12 and 13

          (viii) Clause 14, except that the first sentence of Subclause 14.5.1
               is replaced by the following sentence: "Unless otherwise
               specifically stated, revision service will be offered ** ."

          (ix) Clause 15, ** .

          (x)  Clauses 16 and 17

          (xi) Clause 18 (except that reference to Clause 9 shall mean the
               Amendment 14 A320 Aircraft delivery schedule under this Amendment
               and that reference to Exhibits B1 and B2 shall mean The SSBFE
               mutually agreed by the partner, if any.

          (xii) Clauses 19, 20, 21 and 22

     B.   Exhibits to the Agreement Applicable to the Amendment 14 A320 Aircraft

          (i)  Exhibit B-4 of Amendment 7

          (ii) Exhibit C

          (iii) Exhibit F

          (iv) Exhibit G of Amendment 3 (for Amendment 14 A320 Aircraft with
               Amendment 7 A320 Propulsion System installed only).

          (v)  Exhibit H of Amendment 7

     C.   Letter Agreements to the Agreement Applicable to the Amendment 14 A320
          Aircraft

          (i)  Letter Agreement No. 1, provided however, that the term "first
               Aircraft" as set forth in Subparagraph 5.2.5 and in Subparagraph
               10.1

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               of Letter Agreement No. 1 will mean the first Aircraft delivered
               under the Agreement.

          (ii) Letter Agreement No. 2 to Amendment 7, Paragraph 5 only.

          (iii) Letter Agreement No. 3 to the Agreement, Paragraph 4 only.

          (iv) Letter Agreement No. 3 to Amendment No. 7 to the Agreement, as it
               applies to Amendment 7 A320 Aircraft.

          (v)  Paragraph 5 of Letter Agreement No. 5 excluding Subparagraph
               5.1.2.

          (vi) Letter Agreement No. 6, provided however that the references to
               Letter Agreements No. 2 and 3 in Paragraphs 5 and 6 of Letter
               Agreement No. 6 to the Agreement will be deemed to refer to
               Letter Agreement No. 3 to Amendment No. 7 and provided further
               that the words "after taking into account the provisions of
               Paragraph 5 of Letter Agreement 3 to the Agreement" at the end of
               Subparagraph 6.2 will be deleted.

          (vii) Letter Agreement No. 7.

          (viii) Letter Agreement No. 9, provided however, that, for the
               avoidance of doubt, (the terms Aircraft or A320 Aircraft as set
               forth therein will be deemed to include all A320 Aircraft firmly
               purchased under the Agreement, all A320 Additional Aircraft
               purchased under Amendment 3, all Amendment 7 A320 Aircraft, and
               on all Amendment 14 A320 Aircraft and (ii) the terms Airframe or
               A320 Airframe as set forth therein will be deemed to include the
               Airframe on all A320 Aircraft firmly purchased under the
               Agreement and on all A320 Additional Aircraft purchased under
               Amendment No. 3 to the Agreement and, all Amendment 7 A320
               Aircraft and on all Amendment 14 A320 Aircraft.

3.2  The following specific additional provisions will apply to the Amendment 14
     A320 Aircraft:

     A.1  Sale and Purchase

          Intentionally Left Blank

     A.2  Specification

          The Amendment 14 A320 Aircraft will be manufactured in accordance with
          the Latest Standard Specification, as may be modified from time to
          time, as set forth in Paragraph 2 of Amendment No. 9.

     A.3  Base Price

     A.3.1 Base Price of the Amendment 14 A320 Aircraft

          The "Base Price" of each Amendment 14 A320 Aircraft is the sum of:

          (i)  ** , and

          (ii) ** .

     A.3.2 Base Price of the Amendment 7 A320 Airframe

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     A.3.2.1 The Base Price of the Amendment 7 A320 Airframe, as forth in
          Paragraph 5.2.A.3.2.1 of Amendment 7 (excluding the Amendment 14 A320
          Propulsion System), is:

          US $ **

          (Dollars - ** ).

     A.3.2.2 The Base Price of the Amendment 7 A320 Airframe is quoted in
          delivery conditions prevailing in ** . ** .

     A.3.3 Base Price of the Amendment 14 A320 Propulsion System

          The Base Price of the Amendment 14 A320 Propulsion System, at delivery
          conditions prevailing in ** is:

          US $ **

          (Dollars - ** ).

          The Amendment 14 A320 Propulsion System Base Price has been calculated
          from the reference price indicated by ** of US $ ** in accordance with
          delivery conditions prevailing in ** (the " ** Reference Price").

          The ** Reference Price is subject to adjustment to the date of
          delivery of the Amendment 14 A320 Aircraft in accordance with the **
          Propulsion System Price Revision Formula set forth in Exhibit I
          annexed hereto.

     A.3.4 Final Contract Price

          The Final Contract Price of Amendment 14 A320 Aircraft will be the sum
          of:

          (i)  ** ;

          (ii) ** ;

          (iii) ** ; and

          (iv) any other amount resulting from any other provisions of this
               Agreement as amended and/or any other written agreement between
               the Buyer and the Seller relating to the Amendment 14 A320
               Aircraft and specifically making reference to the Final Contract
               Price of an Amendment 14 A320 Aircraft.

     A.4  Amendment 14 A320 Aircraft Predelivery Payments

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          The Predelivery Payments for the Amendment 14 A320 Aircraft are as set
          forth in Paragraph 9 below.

     A.5  **

          See Paragraph 3.1C (iii) and (iv) above.

     A.6  Amendment 14 Firm A320 Aircraft Delivery Schedule

          The Amendment 14 A320 Aircraft Delivery Schedule is set for in
          Paragraph 6 below.

     A.7  Amendment 14 A320 Aircraft Order Flexibility

          See Paragraph 3.1C (iii) above and Paragraph 11 below.

     A.8  Amendment 14 A320 Aircraft Training and Product Support Matters

          Intentionally Left Blank

     A.9  **

          See Paragraph 3.1C (vii) above.

     A.10 **

          Intentionally Left Blank

4-   CONVERTED AMENDMENT 14 A321 AIRCRAFT

4.1  The Converted Amendment 14 A321 Aircraft will be deemed an Aircraft but
     only for the purposes of the following provisions, exhibits and letter
     agreements; provided however, in cases where the Agreement specifically
     refers to the A319 Aircraft in those provisions, such term will be deemed
     to also include the Converted Amendment 14 A321 Aircraft. The Converted
     Amendment 14 A321 Propulsion System will be as defined in this Amendment.

AWE  - A319/A320 - AMENDMENT NO. 14

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<PAGE>

     A.   Main Agreement Provisions Applicable to the Converted Amendment 14
          A321 Aircraft

          (i)  Clause 1, as amended by Amendment 3 and Amendment 7

          (ii) Subclauses 2.1 and 2.3

          (iii) Clause 3 (except that Subclause 3.2 is replaced by Paragraph 2
               of Amendment 9 and such paragraph will be deemed to apply to the
               Converted Amendment 14 A321 Aircraft)

          (iv) Subclauses 4.4 and 4.5

          (v)  Clauses 5, 6, 7 and 8

          (vi) Subclauses 9.3, 9.4, 9.5 (except the reference to Subclause 9.1
               therein shall be a deemed to include the applicable Converted
               Amendment 14 A321 Aircraft delivery schedule under this
               Amendment, if any) and 9.6

          (vii) Clauses 10, 11, 12 and 13

          (viii) Clause 14, except that the first sentence of Subclause 14.5.1
               is replaced by the following sentence: "Unless otherwise
               specifically stated, revision service will be offered ** ."

          (ix) Clause 15, ** .

          (x)  Clauses 16 and 17

          (xi) Clause 18 (except that reference to Clause 9 shall mean the
               Converted Amendment 14 A321 Aircraft delivery schedule under this
               Amendment and that reference to Exhibits B1 and B2 shall mean
               Exhibit B-2 of Amendment No. 7.

          (xii) Clauses 19, 20, 21 and 22

     B.   Exhibits to the Agreement Applicable to the Converted Amendment 14
          A321 Aircraft

          (i)  Exhibit C

          (ii) Exhibit F

          (ii) Exhibit G of Amendment 3 (for Converted Amendment 14 A321
               Aircraft with Amendment 7 A321 Propulsion System installed only)

          (iv) Exhibit H of Amendment 7

     C.   Letter Agreements to the Agreement Applicable to the Converted
          Amendment 14 A321 Aircraft

          (i)  Letter Agreement No. 1, provided however, that the term "First
               Aircraft" as set forth in Subparagraph 5.2.5 and in Subparagraph
               10.1 of Letter Agreement No. 1 will mean the first Aircraft
               delivered under the Agreement.

          (ii) Letter Agreement No. 2 to Amendment 7, Paragraph 5 only.

          (iii) Letter Agreement No. 3 to the Agreement, Paragraph 4 only.

          (iv) Letter Agreement No. 3 to Amendment No. 7 to the Agreement, as it
               applies to Amendment 7 A321 Aircraft.

          (v)  Paragraph 5 of Letter Agreement No. 5 excluding Subparagraph
               5.1.2.

          (vi) Paragraph 2 of Letter Agreement No. 5 to Amendment No. 7 to the
               Agreement.

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          (vii) Letter Agreement No. 6, provided however that the references to
               Letter Agreements No. 2 and 3 in Paragraphs 5 and 6 of Letter
               Agreement No. 6 will be deemed to refer to Letter Agreement No. 3
               to Amendment No. 7 and provided further that the words "after
               taking into account the provisions of Paragraph 5 of Letter
               Agreement 3 to the Agreement" at the end of Subparagraph 6.2 will
               be deleted.

4.2  The following specific additional provisions will apply to the Converted
     Amendment 14 A321 Aircraft:

     A.1  Sale and Purchase

          Intentionally Left Blank

     A.2  Specification

          The Converted Amendment 14 A321 Aircraft will be manufactured in
          accordance with the Latest Standard Specification, as may be modified
          from time to time, as set forth in Paragraph 2 of Amendment No. 9.

     A.3  Base Price

     A.3.1 Base Price of the Converted Amendment 14 A321 Aircraft

          The "Base Price" of each Converted Amendment 14 A321 Aircraft is the
          sum of:

          (i)  ** , and

          (ii) ** .

     A.3.2 Base Price of the Amendment 7 A321 Airframe

     A.3.2.1 The Base Price of the Amendment 7 A321 Airframe, as forth in
          Paragraph 6.2.A.3.2.1 of Amendment 7 (excluding the Amendment 14 A321
          Propulsion System), is:

          US $ **

          (Dollars - ** ).

     A.3.2.2 The Base Price of the Amendment 7 A321 Airframe is quoted in
          delivery conditions prevailing in ** . ** .

     A.3.3 Base Price of the Converted Amendment 14 A321 Propulsion System

          The Base Price of the Converted Amendment 14 A321 Propulsion System,
          at delivery conditions prevailing in ** is:

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          US $ **

          (Dollars - ** ).

          The Converted Amendment 14 A321 Propulsion System Base Price has been
          calculated from the reference price indicated by ** of US $ ** in
          accordance with delivery conditions prevailing in ** (the " **
          Reference Price").

          The ** Reference Price is subject to adjustment to the date of
          delivery of the Converted Amendment 14 A321 Aircraft in accordance
          with the ** Propulsion System Price Revision Formula set forth in
          Exhibit I as annexed hereto.

     A.3.4 Final Contract Price

          The Final Contract Price of Converted Amendment 14 A321 Aircraft will
          be the sum of:

          (i)  ** ;

          (ii) ** ;

          (iii) ** ; and

          (iv) any other amount resulting from any other provisions of this
               Agreement as amended and/or any other written agreement between
               the Buyer and the Seller relating to the Converted Amendment 14
               A321 Aircraft and specifically making reference to the Final
               Contract Price of an Converted Amendment 14 A321 Aircraft.

     A.4  Converted Amendment 14 A321 Aircraft Predelivery Payments

          The Predelivery Payments for the Converted Amendment 14 A321 Aircraft
          are as set forth in Paragraph 9 below.

     A.5  Converted Amendment 14 A321 Aircraft **

          See Paragraph 4.1C (iii) and (iv) above.

     A.6  Converted Amendment 14 A321 Aircraft Delivery Schedule

          Intentionally Left Blank.

     A.7  Converted Amendment 14 A321 Aircraft Order Flexibility

          Intentionally Left Blank

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     A.8  Converted Amendment 14 A321 Aircraft Training and Product Support
          Matters

          See Paragraph 4.1C (v) and (vi) above.

     A.9  **

          ** .

     A.10 **

          ** .

5-   EXHIBITS

     For the purposes of the Amendment 14 Aircraft the following Exhibits,
     attached hereto, are incorporated into the Agreement and are applicable to
     the Amendment 14 Aircraft:

          Exhibit D-3  Seller Airframe Price Revision Formula

          Exhibit G-1  Certificate of Acceptance (for Amendment 14 A319
                       Aircraft, Amendment 14 A320 Aircraft and Converted
                       Amendment 14 A321 Aircraft each of which with Amendment
                       14 A321 Propulsion System installed only)

          Exhibit I    **  Propulsion System Price Revision Formula

6-   DELIVERY

6.1  The table set forth as Paragraph 4.2.A.6 of the Agreement as restated in
     Amendment No. 9 is hereby canceled and replaced with the following table:

     QUOTE

     Delivery Schedule for Amendment 7 A319 Aircraft, Rescheduled A319 Aircraft
     and Amendment 14 A319 Aircraft

     ** .

AWE  - A319/A320 - AMENDMENT NO. 14

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     For the purposes of this Amendment the Month of Delivery shown in the table
     below will be referred to as the "Scheduled Delivery Month" for such
     Aircraft.

<TABLE>
<CAPTION>
                             Month of
         Aircraft            Delivery   Year   **
         --------            --------   ----   --
<S>                          <C>        <C>    <C>
Amendment 7 A319 Aircraft       **       **    **
Amendment 7 A319 Aircraft       **       **    **
Amendment 7 A319 Aircraft       **       **    **
Amendment 7 A319 Aircraft       **       **    **
Amendment 7 A319 Aircraft       **       **    **
Amendment 14 A319 Aircraft      **       **    **
Rescheduled A319 Aircraft       **       **    **
Amendment 14 A319 Aircraft      **       **    **
Rescheduled A319 Aircraft       **       **    **
Amendment 14 A319 Aircraft      **       **    **
Amendment 14 A319 Aircraft      **       **    **
Amendment 14 A319 Aircraft      **       **    **
Rescheduled A319 Aircraft       **       **    **
Amendment 14 A319 Aircraft      **       **    **
Amendment 14 A319 Aircraft      **       **    **
Amendment 14 A319 Aircraft      **       **    **
Amendment 14 A319 Aircraft      **       **    **
Amendment 14 A319 Aircraft      **       **    **
Amendment 14 A319 Aircraft      **       **    **
Amendment 14 A319 Aircraft      **       **    **
Amendment 14 A319 Aircraft      **       **    **
Amendment 14 A319 Aircraft      **       **    **
Amendment 14 A319 Aircraft      **       **    **
Amendment 14 A319 Aircraft      **       **    **
Amendment 14 A319 Aircraft      **       **    **
</TABLE>

     UNQUOTE

6.2  The table set forth as Paragraph 5.2.A.6 of the Agreement as restated in
     Amendment No. 9 is hereby canceled and replaced with the following table:

     QUOTE

     Delivery Schedule for Amendment 7 A320 Aircraft, Rescheduled A320 Aircraft
     and Amendment 14 A320 Aircraft

     **  .

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<PAGE>

     For the purposes of this Amendment the Month of Delivery shown in the table
     below will be referred to as the "Scheduled Delivery Month" for such
     Aircraft.

<TABLE>
<CAPTION>
                             Month of
         Aircraft            Delivery   Year   **
         --------            --------   ----   --
<S>                          <C>        <C>    <C>
Amendment 7 A320 Aircraft       **       **    **
Amendment 7 A320 Aircraft       **       **    **
Rescheduled A320 Aircraft       **       **    **
Rescheduled A320 Aircraft       **       **    **
Rescheduled A320 Aircraft       **       **    **
Rescheduled A320 Aircraft       **       **    **
Rescheduled A320 Aircraft       **       **    **
Rescheduled A320 Aircraft       **       **    **
Rescheduled A320 Aircraft       **       **    **
Rescheduled A320 Aircraft       **       **    **
Amendment 14 A320 Aircraft      **       **    **
Amendment 14 A320 Aircraft      **       **    **
</TABLE>

     UNQUOTE

7-   STANDARD SPECIFICATION

     The Standard Specification of the Amendment 14 Aircraft, any Converted
     Rescheduled Aircraft, and any Converted Amendment 14 Aircraft will be the
     same as set forth for the Rescheduled Aircraft subject to the provisions in
     paragraph 2 to Amendment 9.

8-   INITIAL PAYMENTS

8.1  Notwithstanding anything contrary in the Agreement, the Buyer will pay to
     the Seller and the Seller will be entitled to receive an amount equal to US
     $ ** (US dollars - ** ) on account of each Aircraft on firm order ** (the
     "Amendment 14 Initial Payment") in accordance with Paragraph 9.1(i) below.

8.2  The parties agree that by virtue of there being thirty (30) Aircraft on
     firm order as of the date of this Amendment, the Buyer will pay and the
     Seller is entitled to receive an Amendment 14 Initial Payment ** amount of
     US $ ** (US dollars - ** ).

8.3  The Seller acknowledges having received ** (US dollars - ** ) on account of
     the eleven (11) Rescheduled Aircraft pursuant to Paragraph 2 of Amendment
     No. 10 and ** (US dollars - ** ) pursuant to the Airbus A319/A320/A321
     Purchase Agreement between AVSA and US Airways, Inc. ("USA") dated October
     31, 1997 (the "USA Agreement") on account of the nineteen (19) Amendment 14
     Aircraft ** (US dollars - ** ). Therefore, the Buyer shall pay to the
     Seller US $ ** (US dollars - ** ) ** .

AWE  - A319/A320 - AMENDMENT NO. 14

**   Confidential Treatment Requested.

                                    AM 14-17

<PAGE>

9-   PREDELIVERY PAYMENTS

9.1  The Buyer will make Predelivery Payments on each of the Amendment 14 A319
     Aircraft, Amendment 14 A320 Aircraft, Converted Rescheduled A320 Aircraft,
     Converted Amendment 14 A320 Aircraft, Converted Rescheduled A321 Aircraft,
     Converted Amendment 14 A321 Aircraft, A318 Aircraft and Converted A318
     Aircraft to the Seller as follows:

          (i)  ** ,

          (ii) ** ,

          (iii) ** , and

          (iv) ** .

9.2  All Predelivery Payments shall be paid in immediately available funds.

9.3  With respect to amounts due pursuant to Paragraph 9.1 (iv) with respect to
     any Aircraft, ** .

9.4  ** .

10-  AIRFRAME PRICE REVISION

     The Final Contract Price for each Rescheduled Aircraft, Amendment 14
     Aircraft and Converted Amendment 14 Aircraft will be derived as provided in
     the Agreement, ** .

     **   .

<TABLE>
<CAPTION>
   **        **        **        **
-------   -------   -------   -------
<S>  <C>  <C>  <C>  <C>  <C>  <C>  <C>
**   **   **   **   **   **   **   **
**   **   **   **   **   **   **   **
**   **   **   **   **   **   **   **
**   **   **   **   **   **   **   **
**   **   **   **   **   **   **   **
**   **   **   **   **   **   **   **
**   **   **   **   **   **   **   **
**   **   **   **   **   **   **   **
**   **   **   **   **   **   **   **
**   **   **   **   **   **   **   **
**   **   **   **   **   **   **   **
**   **   **   **   **   **   **   **
</TABLE>

AWE  - A319/A320 - AMENDMENT NO. 14

**   Confidential Treatment Requested.

                                    AM 14-18

<PAGE>

11-  CONVERSION RIGHTS

11.1 ** .

11.2 ** .

11.3 ** .

11.4 ** .

11.5.1 ** .

11.5.2 ** .

11.5.3 ** .

11.5.4 ** .

11.5.5 ** .

12-  SIMULATOR 3

     The Buyer and Seller agree that according to the terms set forth in
     Paragraph 7 of Amendment 17 to the USA Agreement, the Buyer has certain
     obligations regarding Simulator 3 which will be discharged upon delivery by
     Seller to Buyer of all nineteen (19) Amendment 14 Aircraft.

13-  ENGINE PRICE REVISION FORMULAE

13.1 Exhibit E. The parties ** .

13.2 Exhibit I. Unless otherwise agreed between the parties ** .

14-  EFFECT OF THE AMENDMENT AND OTHER MATTERS

14.1 The execution of Amendment 17 to the USA Agreement will be a condition
     precedent to the effectiveness of this Amendment.

14.2 Upon effectiveness, the provisions of this Amendment will constitute a
     valid amendment to the Agreement and the Agreement will be deemed to be
     amended to the extent herein provided. This Amendment supersedes any
     previous understandings, commitments, or representations whatsoever,
     whether oral or written, related to the subject matter of this Amendment;
     and this Amendment supersedes the letter agreement dated September 27,
     2005, among the Buyer, USA and the Seller (as successor to AVSA, S.A.R.L.),
     relating, among other things, to the cancellation by the Buyer of certain
     Aircraft and to the cancellation by USA of certain USA Aircraft.

AWE  - A319/A320 - AMENDMENT NO. 14

**   Confidential Treatment Requested.

                                    AM 14-19

<PAGE>

14.3 Both parties agree that this Amendment will constitute an integral,
     nonseverable part of the Agreement, and that this Amendment will be
     governed by the provisions of the Agreement, except that if the Agreement
     and this Amendment have specific provisions that are inconsistent, the
     specific provisions contained in this Amendment will govern.

15-  GOVERNING LAW

     THIS AMENDMENT AND THE AGREEMENTS CONTEMPLATED HEREBY WILL BE GOVERNED BY
     AND CONSTRUED AND THE PERFORMANCE THEREOF WILL BE DETERMINED IN ACCORDANCE
     WITH THE PROVISIONS OF SUBPARAGRAPH 22.3 OF THE AGREEMENT.

     IT IS AGREED THAT THE UNITED NATIONS CONVENTION ON CONTRACTS FOR THE
     INTERNATIONAL SALE OF GOODS WILL NOT APPLY TO THIS AMENDMENT OR TO THE
     AGREEMENTS CONTEMPLATED HEREIN.

16-  CONFIDENTIALITY

     The Seller and the Buyer (including their employees, agents and advisors)
     agree to keep the terms and conditions of this Amendment strictly
     confidential, except as required by applicable law or pursuant to legal
     process. The Seller and the Buyer will consult prior to any public
     disclosure regarding this Amendment; provided, however that, following
     execution of this Amendment, Buyer may make such disclosure thereof as may
     be required by law or governmental orders, rules or regulations.

17-  COUNTERPARTS

     This Amendment may be signed in any number of separate counterparts. Each
     counterpart when signed and delivered (including counterparts delivered by
     facsimile transmission) will be an original, and the counterparts will
     together constitute one same instrument.

AWE  - A319/A320 - AMENDMENT NO. 14

**   Confidential Treatment Requested.

                                   AM 14-20

<PAGE>

          If the foregoing correctly sets forth our understanding, please
     execute the original and one (1) copy hereof in the space provided below
     and return a copy to the Seller.

                                        Very truly yours,

                                        AIRBUS S.A.S

                                        By: /s/ Christophe Mourey
                                            ------------------------------------
                                        Its: Senior Vice President Contracts

Accepted and Agreed,

AMERICA WEST AIRLINES, INC.

By: /s/ Tom Weir
    ------------------------------------
Its: Vice President and Treasurer

AWE  - A319/A320 - AMENDMENT NO. 14

**   Confidential Treatment Requested.

                                   AM 14-21

<PAGE>

                                                                     EXHIBIT D-3

                                 SELLER AIRFRAME
                             PRICE REVISION FORMULA

1    BASE PRICE

     The Base Price of the A320 Airframe for the Amendment 7 A320 Aircraft,
     Rescheduled A320 Aircraft, Amendment 14 A320 Aircraft and Converted
     Rescheduled A320 Aircraft; the Base Price of the A319 Airframe for the
     Amendment 7 A319 Aircraft, Rescheduled A319 Aircraft and the Amendment 14
     A319 Aircraft; and the Base Price of the A321 Airframe for the Amendment 7
     A321 Aircraft, Converted Amendment 14 A321 Aircraft and Converted
     Rescheduled A321 Aircraft are as set forth in the Agreement in ** .

2    BASE PERIOD

     The ** Prices of the applicable airframe are deemed to be established in
     accordance with the average economic conditions prevailing in ** , ** , **
     and corresponding to a theoretical delivery in ** as defined by ** index
     values indicated in Paragraph 4 of this Exhibit D-3.

     This ** Prices are subject to adjustment for changes in economic conditions
     as measured by data obtained from the US Department of Labor, Bureau of
     Labor Statistics, and in accordance with the provisions of Paragraphs 4 and
     5 of this Exhibit D-3.

     **   index values indicated in Paragraph 4 herein will not be subject to
          any revision.

3    INDEXES

     Labor Index: ** .

     ** .

     ** .

     Material Index: ** .

     ** .

4    REVISION FORMULA

     **

USA/AWE - Exhibit D-3 Airframe PRF                                      Page 1/3

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<PAGE>

                                                                     EXHIBIT D-3

                                 SELLER AIRFRAME
                             PRICE REVISION FORMULA

5    GENERAL PROVISIONS

5.1  Roundings

     The ** average and ** average will be computed to the first decimal. If the
     next succeeding place is five (5) or more, the preceding decimal place
     shall be raised to the next higher figure.

     Each quotient shall be rounded to the nearest ten-thousandth (4 decimals).
     If the next succeeding place is five (5) or more, the preceding decimal
     place shall be raised to the next higher figure.

     The final factor will be rounded to the nearest ten-thousandth (4
     decimals).

     The final price will be rounded to the nearest whole number (0.5 or more
     rounded to 1).

5.2  Substitution of Indexes for Airframe Price Revision Formula

     If;

USA/AWE - Exhibit D-3 Airframe PRF                                      Page 2/3

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<PAGE>

                                                                     EXHIBIT D-3

                                 SELLER AIRFRAME
                             PRICE REVISION FORMULA

     (i)  the United States Department of Labor substantially revises the
          methodology of calculation of the labor index ** or material index **
          as used in this Exhibit, or

     (ii) the United States Department of Labor discontinues, either temporarily
          or permanently, such labor index ** or material index ** index, or

     (iii)the data samples used to calculate such labor index ** or material
          index ** are substantially changed;

     the Seller will select a substitute index for inclusion in the Airframe
     Price Revision Formula (the "Substitute Index").

     The Substitute Index will reflect as closely as possible the actual
     variance of the labor costs or of the material costs used in the
     calculation of the original labor index ** or material index ** as the case
     may be.

     As a result of the selection of the Substitute Index, Seller will make an
     appropriate adjustment to the Airframe Price Revision Formula to combine
     the successive utilization of the original labor index ** or material index
     ** (as the case may be) and of the Substitute Index.

5.3  Final Index Values

     The ** Prices as revised as of the Delivery Date of the applicable Aircraft
     will be final and will not be subject to further adjustments of any kind
     and for any reason to the applicable indexes as published at the date of
     applicable Aircraft delivery.

USA/AWE - Exhibit D-3 Airframe PRF                                      Page 3/3

**   Confidential Treatment Requested.

<PAGE>

                                                                     EXHIBIT G-1

                            CERTIFICATE OF ACCEPTANCE

In accordance with the terms of that certain Airbus A319/A320 Purchase Agreement
(the "Purchase Agreement") dated as of September 12, 1997, as amended over time,
between AVSA, S.A.R.L. ("AVSA") and America West Airlines, Inc. ("AWE"), the
acceptance inspection relating to the Airbus A319 Aircraft or A320 Aircraft or
A321 Aircraft, as applicable (the "Aircraft"), manufacturer's serial no. ______,
FAA Registration No.: ____________, with two (2) ** series propulsion systems
(for A319, A320 and A321 Aircraft) installed thereon, serial nos. _________
(position #1) and (position #2) has taken place at Hamburg, Germany (or
Toulouse, France as applicable) on the _____ day of __________, _________.

In view of said inspection having been carried out with satisfactory results,
and with any remaining discrepancies noted separately, AWE hereby accepts
delivery of the Aircraft as being in conformity with the provisions of the
Purchase Agreement, as amended.

This acceptance shall not impair the rights of AWE that derive from the
warranties relating to the Aircraft set forth in the Purchase Agreement, as
amended.

AWE specifically recognizes that it has waived any right it may have at law or
otherwise to revoke this acceptance of the Aircraft.

                                        RECEIPT AND ACCEPTANCE OF THE
                                        ABOVE-DESCRIBED AIRCRAFT
                                        ACKNOWLEDGED

                                        America West Airlines, Inc.

                                        By:
                                            ------------------------------------
                                        Title:
                                               ---------------------------------

AWE  - A319/A320 - PA

Exhibit G-1

**   Confidential Treatment Requested.

<PAGE>

                                                                       EXHIBIT I

                                       **
                    PROPULSION SYSTEMS PRICE REVISION FORMULA
                               **SUBJECT TO ** **

1    REFERENCE PRICE

     The ** Reference Price for the Amendment 14 A319 Propulsion Systems is as
     quoted in Paragraph 2.2.A.3.3 of Amendment 14; the ** Reference Price for
     the Amendment 14 A320 Propulsion Systems is as quoted in Paragraph
     3.2.A.3.3 of Amendment 14 and the ** Reference Price for the Converted
     Amendment 14 A321 Aircraft is as quoted in Paragraph 4.2.A.3.3of Amendment
     14 (collectively, the "Reference Price").

     The Reference Price is subject to adjustment for changes in economic
     conditions as measured by data obtained from the US Department of Labor,
     Bureau of Labor Statistics and in accordance with the provisions of
     Paragraph 4 and 5 of this Exhibit I.

2    REFERENCE PERIOD

     The above Reference Price has been established in accordance with the
     economic conditions prevailing for a theoretical delivery in ** as defined
     by ** by the ** .

3    INDEXES

     Labor Index: ** .

     ** .

     Material Index: ** .

AWE  - A319/A320 PA - Amendment 14                                      Page 1/2

Exhibit I - CFMI - PRF

**   Confidential Treatment Requested.

<PAGE>

                                                                       EXHIBIT I

                                       **
                    PROPULSION SYSTEMS PRICE REVISION FORMULA
                               **SUBJECT TO ** **

4    REVISION FORMULA

     **

     In determining the revised Reference Price, the Material Index average **
     shall be rounded to the nearest second decimal place and the Labor Index
     average ** shall be rounded to the nearest first decimal place. ** shall be
     rounded to the nearest second decimal place. The final factor (**) shall be
     raised to the next higher figure.

     If the next succeeding place is five (5) or more, the preceding decimal
     place shall be raised to the nearest third decimal place.

     After final computation ** shall be rounded to the nearest whole number
     (0.5 rounds to 1).

5    GENERAL PROVISIONS

5.1  The Reference Price as revised as of the Delivery Date of the Aircraft
     shall not be subject to any further adjustments in the indexes.

5.2  If the US Department of Labor substantially revises the methodology of
     calculation or discontinues any to these indexes referred to hereabove, the
     Seller shall reflect the substitute for the revised or discontinued index
     selected by ** , such substitute index to lead in application to the same
     adjustment result, insofar as possible, as would have been achieved by
     continuing the use of the original index as it may have fluctuated had it
     not been revised or discontinued.

     Appropriate revision of the formula shall be made to accomplish this
     result.

5.3  Should the above escalation provisions become null and void by action of
     the US Government, the Reference Price shall be adjusted due to increases
     in the costs of labor, and material which have occurred from the period
     represented by the applicable Reference Composite Price Index to the
     twelfth (12th) month prior to the Aircraft Delivery.

5.4  ** .

AWE  - A319/A320 PA - Amendment 14                                      Page 2/2

Exhibit I - CFMI - PRF

**   Confidential Treatment Requested.

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