January 22, 2007 - Leonidas

0122Final147 Q On the page that follows in the exhibit,8 No. 11, there is an item highlighted, would you9 explain the significance of that, please?10 A Could you give me the section, please.11 Q It is section D, I think this is 8-D,12 regarding company contributions to the associations13 applicable 401(k) or defined contribution plan.14 A Oh, okay. This particular agreement, if I15 could regress back to LOA 93 again, when our defined16 benefit plan went away it was replaced by a defined17 contribution plan, and that particular defined18 contribution plan was based on a target, every pilot19 reaching a target number of a million dollars. And20 depending on the circumstance for each individual21 there was a percentage of contribution that was made22 of their annual earnings in order to attempt to23501 bring them to that particular level.2 So we had people with defined contribution3 levels of anywhere from 100 percent to 10 percent,4 depending on their particular circumstance.5 Q Pilots age would have a lot to do that?6 A The pilots age, the number of years left7 to retirement, and there was a host of formulas that8 went into that particular calculation.9 Q That arrangement was an outgrowth of the10 first bankruptcy in which Judge Mitchell approved11 the termination of the USAir pilots defined benefit12 pension plan?13 A That is correct.14 So in that particular case, when LOA 93Page 18