Document:

DAL 12.31.2012 EX 10.16

EXHIBIT 10.16

DELTA AIR LINES, INC.
2013 MANAGEMENT INCENTIVE PLAN

1.    Purpose.  The 2013 Management Incentive Plan (the “MIP”) is an annual incentive program sponsored by Delta Air Lines, Inc. (“Delta” or the “Company”) that is intended to closely:  (a) link pay and performance by providing management employees with a compensation opportunity based on Delta's achieving key business plan goals in 2013; and (b) align the interests of management employees with the Company's other employees and stakeholders.  The MIP is being adopted under, and is subject to the terms of, the Delta Air Lines, Inc. 2007 Performance Compensation Plan (the “2007 Plan”).  Capitalized terms that are used but not defined in the MIP shall have the meaning ascribed to them in the 2007 Plan.  
2.    Plan Administration.  (a)  The Personnel & Compensation Committee of the Board of Directors (the “Committee”) shall be responsible for the general administration and interpretation of the MIP and for carrying out its provisions. The Committee shall have such powers as may be necessary to discharge its duties hereunder, including, without limitation, the following powers and duties, but subject to the terms of the MIP:
(i)     authority to construe and interpret the terms of the MIP, and to determine eligibility, awards and the amount, manner and time of payment of any awards hereunder;
(ii)     authority to prescribe forms and procedures for purposes of MIP participation and distribution of awards; 
(iii)     authority to adopt rules and regulations and to take such actions as it deems necessary or desirable for the proper administration of the MIP; and
(iv)    authority at any time prior to a Change in Control to eliminate or reduce the actual payout to any Participant in the MIP. 
(b)     Any rule or decision by the Committee that is not inconsistent with the provisions of the MIP shall be conclusive and binding on all persons, and shall be given the maximum deference permitted by law.
(c)    Notwithstanding anything contained in the 2007 Plan to the contrary, the Committee shall not have the authority to increase the actual payout to any Participant in the MIP. 
3.    Eligibility.  All Delta employees worldwide who are officers, managing directors (grade 13), directors (grade 12), general managers (grade 11), grade 10 or grade 8 (other than employees who participate in a sales incentive plan or other major functional incentive plan, as may be in effect from time to time) are eligible to participate in the MIP (“Participants”).  
4.    MIP Awards.  

(a)    General.  The MIP award (the “MIP Award”) each Participant receives, if any, will be based on:  (i) the Participant's Target MIP Award, as defined below; (ii) the level of achievement within each applicable performance measure; and (iii) the occurrence of a payout for 2013 under the Company's broad-based employee profit sharing program (the “Profit Sharing Program”), as described below.  Certain additional requirements will apply to any Participant who is employed by the Company as an executive vice 

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president or more senior officer or holds the position of general counsel and chief financial officer of the Company (“Executive Officer Participant”), as discussed in Section 7(b) below.

(b)        Performance Measures.  The performance measures used will be one or more of financial (“Financial Performance”), operational (“Operational Performance”), revenue (“Revenue Performance”), leadership effectiveness (“Leadership Effectiveness Performance”) and individual performance (“Individual Performance”).  Achievement under each performance measure may range from below threshold, at which there is no payout, to the maximum performance level, at which the payout will be greater than the target level, subject to Section 4(c) below.    

(c)    Interaction with Profit Sharing Program and Individual Performance Measure.  If there is no payout under the Profit Sharing Program for 2013, (i) no amount will be paid with respect to Financial Performance to any Participant regardless of whether Delta meets or exceeds that performance measure and (ii) for general manager (grade 11) Participants and above, the actual MIP Award, if any, will not exceed such Participant's Target MIP Award (as defined below).   In addition, if a Participant's performance under the Individual Performance Measure (applicable to Participants who are not officers) falls below the “meets expectations” performance rating, no amount will be paid with respect to Financial Performance, Operational Performance and/or Revenue Performance to such Participant regardless of whether Delta meets or exceeds those performance measures.  

(d)    Target MIP Awards.  The Target MIP Award for each Participant will be expressed as a percentage of the Participant's Annual Base Salary (the “Target MIP Award”) as determined by the Committee and will be communicated to Participants in such manner as the Committee deems appropriate.  Subject to Section 8 below, “Annual Base Salary” means the Participant's 2013 annual base salary as in effect on December 31, 2013.  
   
5.    Weighting of Performance Measures.  Subject to Section 8 below, a percentage of each Participant's Target MIP Award is allocated to one or more of Financial Performance, Operational Performance, Revenue Performance, Leadership Effectiveness Performance and/or Individual Performance based on the Participant's employment level, as follows: 

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	Performance Measures and Weightings

	

Employment
Level

	

% of Target MIP Award allocated to
Financial
Performance

	

% of Target MIP Award allocated to
Operational
Performance

	% of Target MIP Award Allocated to Revenue Performance
	

% of Target MIP Award allocated to
Leadership Effectiveness
Performance
	

% of Target MIP Award allocated to
Individual
Performance

	CEO
	50%
	25%
	25%
	0%
	0%

	President
	50%
	25%
	25%
	0%
	0%

	COO
	50%
	25%
	25%
	0%
	0%

	EVP
	50%
	25%
	25%
	0%
	0%

	CFO and General Counsel
	50%
	25%
	25%
	0%
	0%

	CIO and SVP - ACS/TechOps
	50%
	25%
	25%
	0%
	0%

	SVP*
	50%
	25%
	15%
	10%
	0%

	VP*
	50%
	25%
	15%
	10%
	0%

	Managing Director (Grade 13)*
	35%
	15%
	10%
	0%
	40%

	Director (Grade 12)*
	35%
	15%
	10%
	0%
	40%

	General Manager (Grade 11)
	25%
	15%
	10%
	0%
	50%

	Grade 10
	0%
	0%
	0%
	0%
	100%

	Grade 8
	0%
	0%
	0%
	0%
	100%

*   Notwithstanding the weightings set forth above, the Committee has delegated to the Chief Executive Officer of the Company, the authority to reallocate up to an aggregate of (i) twenty percentage points for Senior Vice Presidents and Vice Presidents and (ii) ten percentage points for Managing Directors and Directors, of the Target MIP Award allocated to Financial Performance to one or both of the Operational Performance and Revenue Performance weightings.    
 
6.    The Performance Measures-Threshold, Target and Maximum Payout Levels.  The Target MIP Award, and the amounts paid in connection with target levels of Financial, Operational, Revenue, Leadership Effectiveness, and Individual Performance, are based on the achievement of the target performance level with respect to each applicable performance measure (except that Financial Performance also requires a payout under the Profit Sharing Program for 2013).  A Participant's actual MIP Award may be greater or less than the target amount based on whether performance under one or more of the performance measures applicable to the Participant exceeds or is below target performance, subject to Section 4(c) above.  This is explained in more detail below.  
(a)    Financial Performance Measures.  The Financial Performance measures for 2013 are based on Delta's Pre-Tax Income, as defined below.  The following table describes the performance ranges and award payout levels for 2013 Financial Performance, subject to Section 4(c) above:

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	Threshold
	Target
	Maximum

	% of Target Financial Performance Measure
Paid
	50%
	100%
	200%

	

Required 2013 Pre-Tax
Income
	$1,184 Million
	$2,367 Million
	$3,148 Million

Payouts will be straight-line interpolated when Pre-Tax Income results fall above Threshold and below Target or above Target and below Maximum.  

     “Pre-Tax Income” will be the amount of Pre-Tax Income, if any, determined under the Profit Sharing Program for 2013.1  

(b)    Operational Performance Measures.  The Operational Performance measures for 2013 are based on both Delta and Delta Connection operational performance, with (i) Delta's operational performance accounting for 75% of the measure and (ii) Delta Connection performance accounting for 25% of the measure.  Delta's Operational Performance is based on the number of times during 2013 that Delta meets or exceeds its monthly goals under the broad-based employee shared rewards program (the “Shared Rewards Program”).  Delta Connection's Operational Performance is based on the number of times during 2013 that the Delta Connection carriers meet or exceed their monthly operational goals for (x) completion factor and (y) on-time performance (the “Delta Connection Goals”).  The Delta Connection Goals and the methodology for determining whether these goals are met are described in Exhibit A hereto.  The following table describes the performance ranges and award payout levels for 2013 Operational Performance, subject to Section 4(c) above: 

________________________________ 
1The Profit Sharing Program for 2013 defines “Pre-Tax Income” as follows:  for any calendar year, the Company's consolidated pre-tax income calculated in accordance with Generally Accepted Accounting Principles in the United States and as reported in the Company's public securities filings but excluding:  (a) all asset write downs related to long term assets, (b) gains or losses with respect to employee equity securities, (c) gains or losses with respect to extraordinary, one-time or non-recurring events, and (d) expense accrued with respect to the profit sharing plan and the MIP.

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	Below Threshold
	Threshold
	Target
	Maximum

	Shared Rewards Program
	 
	 
	 
	 

	% of Target Payout for this Performance Measure (75% Weighting)
	0%
	37.5%
	75%
	150%

	Number of monthly Shared Rewards Program goals actually met during 2013
	15 or less
	16
	21
	26 or more

	Delta Connection Goals
	 
	 
	 
	 

	% of Target Payout for this Performance Measure (25% Weighting)
	0%
	12.5%
	25%
	50%

	Number of Delta Connection Goals actually met during 2013
	8 or less
	9
	14
	19 or more

Payouts based on the Shared Rewards Program and Delta Connection Goals will be straight-line interpolated when actual performance results fall above Threshold and below Target or above Target and below Maximum.

(c)    Revenue Performance Measures. The Revenue Performance measures for 2013 will be measured based on the comparison of Delta's TRASM for the 2013 calendar year over the 2012 calendar year relative to the Industry Group Average TRASM for the 2013 calendar year over the 2012 calendar year. The following table describes the performance ranges and award payout levels for 2013 Revenue Performance, subject to Section 4(c) above:

	
				
	 
	Threshold
	Target
	Maximum

	% of Target Revenue Performance Measure Paid
	50%
	100%
	200%

	Delta's 2013 TRASM over 2012 TRASM relative to Industry Group Average TRASM for the same period
	2012 TRASM
	2012 TRASM + 0.50%  points
	2012 TRASM + 1.0% points or more

Payouts based on Revenue Performance will be straight-line interpolated when actual performance results fall above Threshold and below Target or above Target and below Maximum; provided, however, if 2013 Financial Performance equals or exceeds the Maximum performance level, payouts based on Revenue Performance will not be less than the Target amount regardless of whether the actual performance results fall below Target.

“Available Seat Mile” means the consolidated scheduled and non-scheduled total number of seats available for transporting passengers during a reporting period multiplied by the total number of miles flown during that period.

“Industry Group” means Air Tran Holdings, LLC, Alaska Air Group, Inc., AMR Corporation, JetBlue Airways Corporation, Southwest Airlines Co., United Continental Holdings, Inc., and US Airways Group, Inc.  

“Industry Group Average TRASM” means the aggregate Total Operating Revenue for all members of the Industry Group divided by the aggregate Available Seat Miles of all members of the Industry Group.  

“Total Operating Revenue” means, for Delta and each member of the Industry Group, the applicable company's total operating revenue for a calendar year based on its regularly prepared and publicly available statements of operations prepared in accordance with accounting principles generally accepted in the United States of America.

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In determining the Total Operating Revenue for Delta and each member of the Industry Group, the Committee shall make such adjustments with respect to any subject company as is necessary to ensure the results are comparable, including, without limitation, differences in accounting policies (for example, non-recurring adjustments to deferred revenue resulting from (i) initial application of accounting policies; (ii) the application of accounting policies to materially modified contracts; or (iii) significant accounting estimate changes associated with mergers, acquisitions, divestitures or fresh start accounting as a result of emergence from bankruptcy).  Without limiting the generality of the forgoing, the Committee shall (i) make such determinations based on publicly audited financial statements filed by the subject company with the U.S. Securities and Exchange Commission and (ii) exclude from any calculation any item of gain, loss or expense to be extraordinary or unusual in nature or infrequent in occurrence. 
“TRASM” means Total Operating Revenue divided by Available Seat Miles. 

(d)    Leadership Effectiveness Performance Measure.  The Leadership Effectiveness Performance measure (applicable to Participants who are Vice Presidents or Senior Vice Presidents (other than any Executive Officer Participants) for 2013 will be based on an evaluation of whether a Participant has demonstrated leadership attributes and results during 2013 including, among other things, supporting diversity, providing talent management, meeting financial budget, improving employee engagement, and being a role model for the Rules of the Road.  The performance ranges and award payout levels will be determined by the Committee, subject to Section 4(c) above.  
 
(e)    Individual Performance Measure.  The Individual Performance measure (applicable to Participants who are not officers) is generally determined by each Participant's Leader Performance Management evaluation (“LPM”) at the end of 2013.  The performance ranges and award payout levels will be determined by the Committee, subject to Section 4(c) above.  

7.    Timing of Award Payments.  

(a)    In General.  Subject to Sections 7(b) and 8(a) below, any payouts to a Participant under the MIP for 2013 will be made in cash, as soon as practicable after (i) the Committee certifies the achievement of the required Financial Performance, Operational Performance and Revenue Performance results and (ii) where applicable, Leadership Effectiveness Performance results have been determined and an LPM evaluation has been completed, but in no event later than March 15, 2014, unless it is administratively impracticable to do so, and such impracticability was unforeseeable at the end of 2013, in which case such payment shall be made as soon as administratively practicable after March 15, 2014.  Further, unless a payout for 2013 under the Profit Sharing Program occurs after March 15, 2014, any payout under the 2013 MIP will not be made prior to a payout for 2013 under the Profit Sharing Program; provided, however, if it is determined there will be no payout for 2013 under the Profit Sharing Program, any MIP Awards that are payable based on Operational Performance, Revenue Performance, Leadership Effectiveness Performance or Individual Performance will be paid as soon as practicable thereafter, but in no event later than March 15, 2014, unless it is administratively impracticable to do so, and such impracticability was unforeseeable at the end of 2013, in which case such payment shall be made as soon as administratively practicable after March 15, 2014. 

(b)    Executive Officer Participants.  Payouts under the MIP to Participants who, as of December 31, 2013, are Executive Officer Participants (as such term is defined in Section 4(a) above) will be subject to the following terms and conditions: 

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(i)    Payment in Restricted Stock.  If there is no payout under the Profit Sharing Program for 2013, any payout under the MIP to an Executive Officer Participant will be made in shares of Restricted Stock rather than in cash, with the number of shares of Restricted Stock being equal to the result of the following formula (“MIP Restricted Stock”):    A  ÷  B, where2:

A  =    the amount of the payout to the Executive Officer Participant under the MIP had the payout been made in cash; and

B  =    the closing price of a Share on the New York Stock Exchange on the later of (1) the date that the Committee approves the payouts, if any, to the Executive Officer Participants under the MIP following the Committee's certification of the achievement of the required performance measures as described in Section 7(a) and (2) the third business day following the date on which the Company publicly announces its annual financial results if this date is scheduled in the same month that the Committee approves such payouts, if any.  

 (ii)    Lapsing of Restrictions; Forfeiture.  Until the restrictions imposed by this Section 7(b)(ii) (the “Restrictions”) have lapsed pursuant to the terms below, an Executive Officer Participant will not be permitted to sell, exchange, assign, transfer, pledge or otherwise dispose of the MIP Restricted Stock and the MIP Restricted Stock will be subject to forfeiture as set forth below.  

(A)    The Restrictions shall lapse and be of no further force or effect on the earlier of the date (1) there is a payout under the Profit Sharing Program unless, prior to such payout, the Executive Officer Participant incurs a Disqualifying Termination of Employment or (2) an Executive Officer Participant incurs a Qualifying Termination of Employment.  The MIP Restricted Stock will be immediately forfeited if, prior to the lapsing of the Restrictions, the Executive Officer Participant incurs a Disqualifying Termination of Employment.     
 
(B)    “Disqualifying Termination of Employment” means an Executive Officer Participant's Termination of Employment by the Company for Cause.

(C)    “Qualifying Termination of Employment” means an Executive Officer Participant's Termination of Employment (1) by the Company without Cause or (2) due to death or Disability.

(D)    For purposes of this Section 7(b)(ii), if an Executive Officer Participant incurs a Termination of Employment by reason of (1) a voluntary resignation (including the Termination of Employment by the Participant if he is employed by an Affiliate at the time the Company sells or otherwise divests itself of such Affiliate) or (2) Retirement, the Restrictions shall lapse and be of no further force or effect on the date there is a payout under the Profit Sharing Program as if such Executive Officer Participant's employment had continued through such date.

_____________________
2 If this formula results in any fractional share, the MIP Restricted Stock will be rounded up to the next highest ten shares.

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(E)    For purposes of the MIP, “Retirement” means a Termination of Employment (other than for Cause or death) either:  (1) on or after a Participant's 62nd birthday provided that such Participant has completed at least 5 years service since his or her most recent hire date with the Company (or an Affiliate or former Affiliate) or (2) on or after a Participant's 52nd birthday provided that such Participant has completed at least 10 years service since his or her most recent hire date with the Company (or an Affiliate or former Affiliate).
(iii)    Dividends.  In the event a cash dividend shall be paid in respect of Shares at a time the Restrictions on the MIP Restricted Stock have not lapsed, the Participant shall be eligible to receive the dividend upon the lapse of the Restrictions.  The Restrictions shall apply to any such dividend.
(iv)    2007 Plan; Written Notice. The MIP Restricted Stock will otherwise be subject to the terms of the 2007 Plan.  In the event any Executive Officer Participant's MIP Award is converted to MIP Restricted Stock, such Participant will receive a written notice of such conversion with the details thereof as soon as practicable after the MIP Payment Date.

8.    Change in Employment Status. 

(a)    Termination of Employment.    

(i)    A Termination Event in 2013--General.  Except as expressly set forth in this Section 8, in the event a Participant's employment with Delta terminates for any reason prior to the end of the workday on December 31, 2013, such Participant will be ineligible for any award under the MIP.  In other words, if a Participant is employed according to Company records through the end of the workday on December 31, 2013, the Participant will be eligible for any award earned under the MIP for 2013, including, if applicable, MIP Restricted Stock.

(ii)    Termination on or after January 1, 2014.  Subject to Section 7(b) above, a Participant who incurs a Termination of Employment for any reason other than for Cause on or after January 1, 2014 will remain eligible for any unpaid MIP Award, which award will be paid according to the terms of Section 7(a) above.  A Participant who is terminated by the Company for Cause on or after January 1, 2014 will forfeit any unpaid MIP Award.

(iii)    Pro Rata MIP Payment.  

(A)    Disability or Retirement.  This Section 8(a)(iii)(A) applies to any Participant who incurs a Termination of Employment prior to January 1, 2014 due to the Participant's Disability or Retirement (as such term is defined in Section 7(b)(ii)(D)).  Subject to the Participant's execution of a waiver and release of claims in a form and manner satisfactory to the Company, such Participant will be eligible to receive a MIP Award based on an adjusted annual base salary amount, but otherwise in the same manner, to the same extent and at the same time as the Participant would have received such MIP Award if such Participant's employment had continued through December 31, 2013 (i.e., based on achievement of applicable performance measures).  The most recent LPM prior to the Termination of Employment will generally apply to the Individual Performance measure, if any, applicable to the Participant.  The Participant's Annual Base Salary will be the result of the following formula: X × Y/12, where: 

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X = the Participant's annual base salary as in effect as of the date of Termination of Employment; and 

Y = the number of calendar months the Participant was actively employed by Delta during 2013 in a MIP-eligible position, rounded up for any partial month.3 

(B)    Termination of Employment Without Cause or Resulting in Benefits under the Severance Plan.  This Section 8(a)(iii)(B) applies to any Participant who incurs a Termination of Employment prior to January 1, 2014 due to either (1) a Termination of Employment by the Company without Cause, or (2) for any other reason that entitles such Participant to benefits under the Delta Air Lines, Inc. 2009 Officer and Director Severance Plan (the “Severance Plan”).  Subject to the Participant's execution of a waiver and release of claims in a form and manner satisfactory to the Company, such Participant will be eligible to receive a MIP Award based on an adjusted annual base salary amount, but otherwise in the same manner, to the same extent and at the same time as the Participant would have received such MIP Award if such Participant's employment had continued through December 31, 2013 (i.e., based on achievement of applicable performance measures).  The Participant's Annual Base Salary will be determined in accordance with the formula set forth in Section 8(a)(iii)(A) above.

(C)    Death.  This Section 8(a)(iii)(C) applies to any Participant  who incurs a Termination of Employment prior to January 1, 2014 due to the Participant's death.  The Participant's estate will be eligible to receive a Pro Rata MIP Payment made in cash as soon as practicable after a Participant's Termination of Employment, but in no event later than 21⁄2 months following the end of the year in which the Termination of Employment occurs. “Pro Rata MIP Payment” means the result of the following formula:  W × Z/12, where: 

W = the Participant's Target MIP Award; and 

Z = the number of calendar months the Participant was actively employed by Delta during 2013 in a MIP-eligible position, rounded up for any partial month.
    
(b)    Other Changes in Employment Status.  The terms of this Section 8(b) shall apply to circumstances involving new hires, promotions, demotions, transfers or leaves of absence during 2013.  After a Participant's Target MIP Award is determined under this Section 8(b), the appropriate weighting of performance measures will apply to each portion of such Target MIP Award as set forth in Section 5 above.  For partial calendar months, the change in employment status will be considered effective as of the 1st day of the month in which there is a change in status; provided, however, in the event that a Participant was (i) on a Disability leave of absence for a period of less than one calendar month during 2013 and (ii) actively at work for at least one full day during such calendar month, the Participant will be deemed to have been employed in a MIP-eligible position for the entire calendar month.  The end of year LPM will apply to any Individual Performance measure applicable to the Participant unless the Participant is no longer subject to the LPM process after the change in employment status, in which case the most recent LPM will apply.  Any MIP Awards payable under this Section 8(b) will be paid at the same time and in the same manner as such awards are paid to active Participants, subject to Section 7(b) above.  

_____________________________ 
3For purposes of the MIP, one calendar month is calculated from the date of measurement to the same or closest numerical date occurring during the following month.  For example, one calendar month from January 31, 2013 will elapse as of February 28, 2013, two months will elapse on March 31, 2013, and so on.

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(i)    New Hires.  With respect to any individual who becomes employed by Delta as a grade 8 or any more senior MIP-eligible position during 2013 but after January 1, 2013, such individual will be a Participant in the MIP and will be eligible to receive an award under the MIP for 2013; provided, that such Participant's Annual Base Salary will be the result of the following formula: X × Y/12, where:

X = the Participant's annual base salary as of December 31, 2013; and

Y = the number of calendar months the Participant was actively employed by Delta in a MIP-eligible position during 2013, rounded up for any partial month.

(ii)    Promotions.  Participants who are either promoted into a MIP-eligible job level or promoted into a higher level of MIP participation during 2013 will have their Target MIP Award calculated based on their annual base salary at each MIP-eligible job level (measured as of the date immediately prior to the date the promotion is considered effective for purposes of the MIP, if applicable, as described in the first paragraph of Section 8(b) above, and as of December 31, 2013) and the number of calendar months they were employed in each such capacity, multiplied by the relevant total target award percentage applicable to their position or positions during the relevant period. 

(iii)    Demotions.  Participants who are either demoted to a position that is not eligible to participate in the MIP or demoted to a lower level of MIP participation during 2013 will have their Target MIP Award calculated based on their annual base salary at each MIP-eligible job level (measured as of the date immediately prior to the date the demotion is considered effective for purposes of the MIP, as described in the first paragraph of Section 8(b) above, and, if applicable, as of December 31, 2013) and the number of calendar months they were employed in each such capacity, multiplied by the relevant total target award percentage applicable to their position or positions during the relevant period.    

(iv)    Transfers and Leaves of Absence.  In the event that during 2013 a Participant transfers employment from Delta to a Delta subsidiary or Affiliate that does not participate in the MIP, other than a transfer to the Delta Community Credit Union (the “DCCU”), the Participant will forfeit any eligibility for an award under the MIP.  Except as provided under Section 8(b)(v) below, any Participant who goes on any type of leave or who transfers to the DCCU at any time during 2013 will have his Target MIP Award calculated based on his annual base salary (measured as of the date immediately prior to the date the transfer or leave is considered effective for purposes of the MIP) and the number of calendar months he was employed in a MIP-eligible position during 2013, multiplied by the relevant total target award percentage applicable to his MIP-eligible position.       

(v)    Military Leave.  In the event that at any time during 2013 a Participant is on a Military Leave of Absence, his or her Annual Base Salary shall be equal to the aggregate annual base salary the Participant received from Delta during 2013 plus any amount of base salary such Participant would have received had he or she been actively employed by Delta in any corresponding MIP-eligible position during such leave. “Military Leave of Absence” means a Participant's absence from his or her position of employment at any time during 2013 because of service in the uniformed services, as defined under the Uniformed Services Employment and Reemployment Rights Act of 1994, as amended (“USERRA”); provided, that a Participant must provide the Company appropriate evidence that his or her absence was due to service in the uniformed services and the period of such service in order to be considered to be on a Military Leave of Absence for purposes of the MIP.  For 

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purposes of the MIP, any Participant who is absent due to military service (according to Delta's records) as of December 31, 2013 and has been on such leave for a cumulative period (during the period he or she has been employed by Delta) of five years or less, will be presumed to be on a Military Leave of Absence.  Any Participant who is similarly absent due to military service (based on Delta's records) and who has been on such leave for a period of more than five years will not be considered to be on a Military Leave of Absence until he or she provides appropriate evidence that he or she is entitled to an exception to the five-year limit on uniformed service as set forth in USERRA.

9.    Treatment of Payments Under Benefit Plans or Programs.  MIP payments, which for an Executive Officer Participant who receives MIP Restricted Stock means the amount of the payout to the Executive Officer Participant under the MIP had the payout been made in cash, will be considered as earnings under any benefit plan or program sponsored by Delta only to the extent such payments are included as earnings under the terms of the specific plan or program; provided, however, that any MIP payment made to an Executive Officer Participant in MIP Restricted Stock will be considered as earnings only for purposes of the Company's restoration payment program, as in effect from time to time.  If such payments are included, unless otherwise provided in such plan or program, participants will be eligible to contribute amounts paid under the MIP into such plans in the same manner and to the same extent as their ordinary compensation and any amounts so contributed will be subject to any applicable Company contributions and/or matches.  Notwithstanding anything to the contrary in this Section 9, any MIP payment received in connection with a Termination of Employment shall not be considered earnings under any benefit plan or program sponsored by Delta.

10.    Effective Date.  The MIP will become effective as of January 1, 2013; provided however, if on or before the date the Committee adopts the MIP any employee who would otherwise have participated in the MIP is informed that his or her employment will be terminated by the Company without Cause, any severance such employee is entitled to receive will be calculated based on the 2012 Management Incentive Plan as in effect as of December 31, 2012.
11.    Amendment.  Except as otherwise expressly set forth in this Section and Section 14, the terms of Section 14 of the 2007 Plan shall apply to any amendment or termination of the MIP. In addition, the terms applicable to any Participant will be subject in their entirety to the terms of any offer letter or other document to which the Participant has agreed.  The terms of such offer letter or other document, if contrary to the terms of the MIP, shall govern the rights of the corresponding Participant.

12.    Fractions.  Any calculation under the MIP that results in a fractional amount will be rounded up to two decimal points.

13.    Section 409A of the Code.  Notwithstanding anything to the contrary in the MIP, to the extent that any amount paid hereunder in connection with a Termination of Employment constitutes deferred compensation under Section 409A of the Internal Revenue Code of 1986, as amended, and the regulations promulgated thereunder (together, “Section 409A”) and is paid to a “specified employee” as defined in Section 409A, the payment of such amount will be delayed for six months.

14.    Clawback.  Notwithstanding anything to the contrary in the MIP and subject to further amendment of this Section 14 to the extent required to be in compliance with any applicable law or regulation or Delta's internal clawback policy, as it may be amended from time to time, if the Committee determines that a vice president or more senior officer level Participant has engaged in fraud or misconduct that caused, in whole or in part, the need for a required restatement of Delta's financial statements filed with the Securities and Exchange Commission, the Committee will review all incentive compensation awarded to or earned by such 

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Participant, including, without limitation, any MIP Award, with respect to fiscal periods materially affected by the restatement and may recover from the Participant all such incentive compensation to the extent that the Committee deems appropriate after taking into account the relevant facts and circumstances.  Any recoupment hereunder may be in addition to any other remedies that may be available to Delta under applicable law, including, disciplinary action up to 
and including termination of employment.        
                                                  

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EXHIBIT A-DELTA CONNECTION GOALS:

Delta Connection's Operational Performance will be based on the number of times during 2013 that the group of Delta Connection carriers meets or exceeds its monthly operational goals for completion factor and on-time arrival performance (the “Delta Connection Goals”).  The 24 monthly Delta Connection Goals are included on the following tables:

	
			
	Month in 2013
	Completion Factor
2013 Goal
	On-Time Arrival Performance
2013 Goal

	January
	96.9%
	79.6%

	February
	97.1%
	81.4%

	March
	97.8%
	80.5%

	April
	98.5%
	83.8%

	May
	98.7%
	83.4%

	June
	98.2%
	79.8%

	July
	98.0%
	78.7%

	August
	98.1%
	81.2%

	September
	98.7%
	85.2%

	October
	98.7%
	84.6%

	November
	98.8%
	84.7%

	December
	97.0%
	75.1%

	Total
	98.1%
	81.6%

		
	A.
	The primary source of reported metrics used to calculate performance will be each Delta Connection carrier's data which flows into Delta's data warehouse.

		
	B.
	All domestic and international Delta Connection carrier system operations subject to capacity purchase agreements and/or revenue proration agreements will be included in the performance measures, including the operations of Chautauqua,  Compass, ExpressJet, GoJet,  Pinnacle, Shuttle America and SkyWest, but excluding any revenue proration operations with respect to which passenger reservations are not reflected on Delta's reservations system (the “Delta Connection Program”).  In the event that a carrier enters or leaves the Delta Connection Program, that carrier's operations will be included or excluded from the performance measures as applicable.  

		
	C.
	The monthly calculation for completion factor will be as follows:

		
	1.
	Add all Delta Connection scheduled system operations for the month.

		
	2.
	Add all Delta Connection system completed flights for the month (including flights canceled by one carrier and covered by another via an extra section, which also includes flights changed to Delta aircraft).  

		
	3.
	Divide the result of C.2 by the result of C.1 for a combined Delta Connection system completion factor.

		
	D.
	The monthly calculation for on-time performance will be as follows:

		
	1.
	Add all Delta Connection completed system operations for the month.

		
	2.
	Add all Delta Connection system on time operations for the month.  On time operations are defined as the number of flights that arrive at the scheduled destination within 15 minutes of the scheduled arrival time.  

		
	3.
	Divide the result of D.2 by the result of D.1 for a combined Delta Connection system on-time performance measure.  

		
	E.
	All calculations will be performed and validated by Delta Connection Operations.

13DAL 12.31.2012 EX 10.17

EXHIBIT 10.17
DELTA AIR LINES, INC. 
TRANSITION AWARD PROGRAM 

1.    Purpose.  The Transition Award Program (the “TAP”) is an equity-based long-term incentive program sponsored by Delta Air Lines, Inc. (“Delta” or the “Company”) for key employees of Delta and its subsidiaries.  The TAP is intended to (a) ensure consistency of award opportunity levels during the transition of the Company's long-term incentive program from a two-year to three-year program and (b) retain key employees during this transition and align their interests with Delta's other employees and stakeholders. 

The TAP is being adopted under the Delta Air Lines, Inc. 2007 Performance Compensation Plan (the “2007 Performance Plan”).  It is subject to the terms of the 2007 Performance Plan and a Participant's TAP Award Agreement (“Award Agreement”).  

Capitalized terms that are used but not defined in the TAP shall have the meaning ascribed to them in the 2007 Performance Plan.  For purposes of the TAP, the definitions of  “Good Reason” and “Retirement” as set forth in the 2007 Performance Plan are hereby replaced or modified under Section 6 below, and shall apply as set forth in Section 6 in lieu of the definitions of these terms in the 2007 Performance Plan or as modified, as applicable.  

2.    Individual Award Agreements.  Any person offered an Award under the TAP will be required to sign an individual Award Agreement.  Execution by such person of his or her Award Agreement will be a prerequisite to the effectiveness of the Award under the TAP and to the person's becoming a Participant in the TAP.  The terms and conditions of any Award Agreement, if contrary to the terms of the TAP, shall govern the rights of the corresponding Participant.
3.    Plan Administration.  (a)  The Personnel & Compensation Committee of the Board of Directors (the “Committee”) shall be responsible for the general administration and interpretation of the TAP and for carrying out its provisions. The Committee shall have such powers as may be necessary to discharge its duties hereunder, including, without limitation, the following powers and duties, but subject to the terms of the TAP:
(i)     authority to construe and interpret the terms of the TAP, and to determine eligibility, awards and the amount, manner and time of payment of any awards hereunder;
(ii)     authority to prescribe forms and procedures for purposes of the TAP participation and distribution of awards; and
(iii)     authority to adopt rules and regulations and to take such actions as it deems necessary or desirable for the proper administration of the TAP.
 (b)     Any rule or decision by the Committee that is not inconsistent with the provisions of the TAP shall be conclusive and binding on all persons, and shall be given the maximum deference permitted by law.
(c)    Notwithstanding anything contained in the 2007 Performance Plan to the contrary, the Committee shall not have the authority to increase or decrease the actual payout of any Performance Award (as defined below) granted to any Participant pursuant to Section 4(b) hereunder.

1

4.    Awards.    
(a)    Restricted Stock.
 
(i)    Award Grant.  A Participant may receive Restricted Stock as specified in the Participant's Award Agreement (the “Restricted Stock”). 

(ii)    Grant Date.  The Grant Date of the Restricted Stock will be determined by the Committee and set forth in a Participant's Award Agreement.

(iii)    Restrictions. Until the restrictions imposed by this Section 4(a) (the “Restrictions”) have lapsed pursuant to Section 4(a)(iv), (v) or (vi) below, a Participant will not be permitted to sell, exchange, assign, transfer, pledge or otherwise dispose of the Restricted Stock and the Restricted Stock will be subject to forfeiture as set forth below.

(iv)    Lapse of Restrictions-Continued Employment.  

(A)    In General.  Except as otherwise provided in Section 4(a)(iv)(B) below with respect to Executive Officer Participants (as such term is defined therein) and subject to the terms of the 2007 Performance Plan and the TAP, the Restrictions shall lapse and be of no further force or effect with respect to one-half of the Shares of Restricted Stock on February 1, 2014 (“First RS Installment”) and the remaining one-half on February 1, 2015 (“Second RS Installment”).1  
(B)    Executive Officer Participants.  Subject to the terms of the 2007 Performance Plan and the TAP, with respect to each Participant who is employed by the Company as an executive vice president or more senior officer or holds the position of general counsel or chief financial officer of the Company (an “Executive Officer Participant”) on the Grant Date, the Restrictions shall lapse and be of no further force or effect with respect to one hundred percent (100%) of the Shares of Restricted Stock on February 1, 2015.

(v)    Lapse of Restrictions/Forfeiture upon Termination of Employment.   The Restricted Stock and the Restrictions set forth in this Section 4(a) are subject to the following terms and conditions:
 
(A)    Without Cause or For Good Reason.  Upon a Participant's Termination of Employment by the Company without Cause or by the Participant for Good Reason (including the Termination of Employment of the Participant if he is employed by an Affiliate at the time the Company sells or otherwise divests itself of such Affiliate), with respect to any portion of the Restricted Stock subject to the Restrictions, the Restrictions shall immediately lapse on the Pro Rata RS Portion as of the date of such Termination of Employment.  Upon a Participant's Termination of Employment by the Company without Cause or by the Participant for Good Reason, any Restricted Stock that remains subject to the Restrictions, other than the Pro Rata RS Portion, shall be immediately forfeited.

_________________________________ 
1If this formula results in any fractional Share allocation to any RS Installment, the number of Shares with respect to which the Restrictions lapse under the First RS Installment will be rounded up, and the number of shares with respect to which the Restrictions lapse on the Second RS Installment will be rounded down, to the nearest whole Share so that only full Shares are covered by each RS Installment.  

2

“Pro Rata RS Portion” means, with respect to any portion of Restricted Stock that is subject to the Restrictions at the time of a Participant's Termination of Employment, the number of Shares with respect to which the Restrictions would have lapsed on each future RS Installment multiplied by a fraction (i) the numerator of which is the number of calendar months2from the Grant Date to the date of such Termination of Employment, rounded up for any partial month and (ii) the denominator of which is (1) for Participants other than Executive Officer Participants, twelve (12) for the First RS Installment and twenty-four (24) for the Second RS Installment and (2) for Executive Officer Participants, twenty-four (24).3 

(B)    Voluntary Resignation.  Upon a Participant's Termination of Employment by reason of a voluntary resignation (other than for Good Reason or Retirement), any portion of the Restricted Stock subject to the Restrictions shall be immediately forfeited. 

(C)    Retirement.  Subject to Section 4(a)(v)(F) below, upon a Participant's Termination of Employment by reason of Retirement, with respect to any portion of the Restricted Stock subject to the Restrictions, the Restrictions shall immediately lapse on the Pro Rata RS Portion as of the date of such Termination of Employment.  Pro Rata RS Portion has the meaning set forth in Section 4(a)(v)(A) above.  Upon a Participant's Termination of Employment by reason of Retirement, any Restricted Stock that remains subject to the Restrictions, other than the Pro Rata RS Portion, shall be immediately forfeited.

(D)    Death or Disability.  Upon a Participant's Termination of Employment due to death or Disability, the Restrictions shall immediately lapse and be of no further force or effect as of the date of such Termination of Employment.

(E)    For Cause.  Upon a Participant's Termination of Employment by the Company for Cause, any portion of the Restricted Stock subject to the Restrictions shall be immediately forfeited. 

(F)     Retirement-Eligible Participants Who Incur a Termination of Employment for Other Reasons.  If a Participant who is eligible for Retirement is, or would be, terminated by the Company without Cause, such Participant shall be considered to have been terminated by the Company without Cause for purposes of the TAP rather than having retired, but only if the Participant acknowledges that, absent Retirement, the Participant would have been terminated by the Company without Cause.  If, however, the employment of a Participant who is eligible for Retirement is terminated by the Company for Cause, then regardless of whether the Participant is considered as a retiree for purposes of any other program, plan or policy of the Company, for purposes of the TAP, the Participant's employment shall be considered to have been terminated by the Company for Cause.

_________________________________ 
2 For purposes of the TAP, one calendar month is calculated from the date of measurement to the same or closest numerical date occurring during the following month.  For example, one calendar month from January 31, 2013 will elapse as of February 28, 2013, two months will elapse on March 31, 2013, and so on. 
3 If this formula results in any fractional Share, the Pro Rata RS Portion will be rounded up to the nearest whole Share.

3

     (vi)    Change in Control.  Notwithstanding the forgoing and subject to Section 5 below, upon a Participant's Termination of Employment by the Company without Cause or by the Participant for Good Reason (including the Termination of Employment of the Participant if he is employed by an Affiliate at the time the Company sells or otherwise divests itself of such Affiliate) on or after a Change in Control but prior to the second anniversary of such Change in Control, any Restrictions in effect shall immediately lapse on the date of such Termination of Employment and be of no further force or effect as of such date. 
(vii)    Dividends.  In the event a cash dividend shall be paid with respect to Shares at a time the Restrictions on the Restricted Stock have not lapsed, the Participant shall be eligible to receive the dividend upon the lapse of the Restrictions.  The Restrictions shall apply to any such dividend.

(b)    Performance Awards. 
(i)    Award Grant.  A Participant may receive a Performance Award for a specified target cash amount as set forth in the Participant's Award Agreement (a “Performance Award”).  

(ii)    Grant Date.  The Grant Date of the Performance Award will be determined by the Committee and set forth in the Participant's Award Agreement.

(iii)    Payout Criteria and Form of Payment.  Except as otherwise expressly set forth in this Section 4(b), payment, if any, of a Performance Award will be based on the following factors as described and defined below:  (A) the Average Annual Operating Income Margin during the Performance Period of the Company relative to the Composite Performance of the members of the Industry Composite Group; (B) Customer Service Performance during the Performance Period of the Company; and (C) Return on Invested Capital for each calendar year during the Performance Period of the Company.  
The payout, if any, of a Performance Award will be made (A) in Shares, calculated based on the Conversion Formula (as defined below), to each Participant who is an Executive Officer Participant at the time of such payout and (B) in cash in all other circumstances. 

(iv)    Definitions. 
(A)    In General.
		
	(1)
	“Composite Performance” has the meaning given such term in the Delta Air Lines, Inc. 2013 Long-Term Incentive Program (the “2013 LTIP”).

		
	(2)
	 “Conversion Formula” has the meaning given such term in the 2013 LTIP. 

		
	(3)
	“GAAP” means accounting principles generally accepted in the United States of America.

		
	(4)
	“Industry Composite Group” has the meaning given such term in the 2013 LTIP.  

		
	(5)
	“Performance Period” means the period beginning on January 1, 2013 and ending on and including December 31, 2014.

4

(B)    Average Annual Operating Income Margin.
		
	(1)
	The “Average Annual Operating Income Margin” for Delta and each member of the Industry Composite Group shall be calculated by using the subject company's Operating Income and Total Operating Revenue for the applicable periods and the following formula:  (A ÷ B ), where:

A = Operating Income for 2013 and 2014; and
B = Total Operating Revenue for 2013 and 2014.
		
	(2)
	“Operating Income” has the meaning given such term in the 2013 LTIP.  

		
	(3)
	“Total Operating Revenue” has the meaning given such term in the 2013 LTIP.  

(C)    Customer Service Performance.
		
	(1)
	The “Customer Service Performance” has the meaning given such term in the 2013 LTIP. 

(D)    Return on Invested Capital.   
		
	(1)
	The “Return on Invested Capital” for Delta shall be calculated by using Delta's Adjusted Total Operating Income and Average Invested Capital for each individual calendar year during the Performance Period (2013 and 2014) and the following formula, (A  B), where:

A = Adjusted Total Operating Income; and
B = Average Invested Capital.

		
	 (2)
	“Adjusted Total Operating Income” has the meaning given such term in the 2013 LTIP.

		
	 (3)  
	“Average Invested Capital” has the meaning given such term in the 2013 LTIP.

    
(v)      Vesting.  

(A)    General.  Subject to the terms of the 2007 Performance Plan, the TAP, and all other conditions included in any applicable Award Agreement, the Performance Award shall vest, as described in this Section 4(b)(v), as of the end of the Performance Period to the extent that the Company's actual performance results meet or exceed Threshold level with respect to Average Annual Operating Income Margin, Customer Service Performance and/or Return on Invested Capital, as applicable and as described below.  For purposes of Average Annual Operating Income Margin, the Company's performance is compared against the Composite Performance of the Industry Composite Group.    

(B)    Committee's Authority.  In determining the Average Annual Operating Income Margin for Delta and each member of the Industry Composite Group and the Return on 

5

Invested Capital for Delta, the Committee shall make such adjustments with respect to any subject company as is necessary to ensure the results are comparable, including, without limitation, differences in accounting policies (for example, fuel hedging, purchase accounting adjustments associated with mergers, acquisitions or divestures, or fresh start accounting as a result of emergence from bankruptcy).  Without limiting the generality of the forgoing, the Committee shall (i) make such determinations based on financial data filed by the subject company with the U.S. Department of Transportation or otherwise and (ii) exclude from any calculation any item of gain, loss, or expense to be extraordinary or unusual in nature or infrequent in occurrence.

(C)    Impact of Certain Events.  A company shall be automatically removed from the Industry Composite Group in the event that any of the following occur during or with respect to the Performance Period:  (i) such company ceases to maintain or does not timely prepare publicly available statements of operations prepared in accordance with GAAP; (ii) such company is not the surviving entity in any merger, consolidation, or other non-bankruptcy reorganization (or survives only as a subsidiary of an entity other than a previously wholly owned subsidiary of such company); (iii) such company sells, leases, or exchanges all or substantially all of its assets to any other person or entity (other than a previously wholly owned subsidiary of such company); (iv) such company is dissolved and liquidated; or (v) more than 20% of such company's revenues (determined on a consolidated basis based on the regularly prepared and publicly available statements of operations of such company prepared in accordance with GAAP) for any fiscal year of such company are attributable to the operation of businesses other than such company's airline business and such company does not provide publicly available statements of operations with respect to its airline business that are separate from the statements of operations provided with respect to its other businesses. 

(D)    Transactions Between Airlines.  To the extent reasonably practicable, in the event of a merger, consolidation, or similar transaction during the Performance Period between Delta and any other airline, including a member of the Industry Composite Group, or between any member of the Industry Composite Group and any other airline, including another member of the Industry Composite Group (an “Airline Merger”), Average Annual Operating Income Margin for any such company involved in an Airline Merger will be calculated on a combined basis as if the Airline Merger had occurred on January 1, 2013, removing the effects of purchase accounting-related adjustments.  

(E)    Vesting/Performance Measures-Excluding Return on Invested Capital.  The payment, if any, a Participant will receive in connection with the vesting of the portion of the Performance Award attributable to Average Annual Operating Income Margin and Customer Service Performance will be based on the following:

6

	
												
	 
	

Average Annual Operating
Income Margin
	+
	

Customer Service 
Performance--Domestic
	+
	

Customer Service 
Performance--Domestic

	 
	Performance Measure
	 
	

% of Target
Earned  x
Weight
	 
	Performance Measure
	 
	

% of Target
Earned x
Weight
	 
	Performance Measure
	 
	

% of Target
Earned x
Weight

	 
	Maximum
	33.0% above Composite Performance
	

200%
x50%
	 
	Maximum
	+3.0% points or higher
	

200% 
x15%
	 
	Maximum
	+5.0% points or higher
	

200% 
x10%

	 
	Target
	Composite Performance
	

100%
x50%
	 
	Target
	+1.5% points
	

100% 
x15%
	 
	Target
	+2.5% points
	

100% 
x10%

	 
	Threshold
	33.0% below Composite Performance
	

50%
x50%
	 
	Threshold
	+0% points
	

50% 
x 15%
	 
	Threshold
	+1.0% points
	

50% 
x 10%

Any portion of a Performance Award attributable to Average Annual Operating Income Margin and Customer Service Performance that does not vest at the end of the Performance Period will immediately lapse and become void.  Payouts based on the above performance measures will be straight-line interpolated when actual performance results fall above Threshold and below Target or above Target and below Maximum.
(F)    Vesting/Performance Measures-Return on Invested Capital. The payment, if any, a Participant will receive in connection with the vesting of the portion of the Performance Award attributable to Return on Invested Capital will be based on the following:

7

	
										
	 
	 
	

Return on Invested Capital
2013
	+
	

Return on Invested Capital
2014

	 
	Performance Measure
	 
	

% of Target
Earned  x
Weight
	 
	Performance Measure
	 
	

% of Target
Earned  x
Weight

	 
	 
	Maximum
	12.0% or higher
	

200%
 x 12.5%
	 
	Maximum
	12.0% or higher
	

200%
 x 12.5%

	 
	 
	Target
	10.0%
	

100%
 x 12.5%
	 
	Target
	10.0%
	

100%
 x 12.5%

	 
	 
	Threshold
	8.0%
	

50% 
x 12.5%
	 
	Threshold
	8.0%
	

50% 
x 12.5%

The Company's Return on Invested Capital performance will be measured each calendar year during the Performance Period (each calendar year increment is referred to herein as an “ROIC Installment”) and to the extent that the Company's actual performance results meet or exceed Threshold level at the end of each calendar year during the Performance Period, each such ROIC Installment will be treated as an “Earned Award.” A Participant's Earned Award(s), if any, will accumulate until the end of the Performance Period at which time all Earned Awards will vest.  

Any ROIC Installment that does not vest at the end of the Performance Period will immediately lapse and become void.  Payouts based on the above performance measures will be straight-line interpolated when actual performance results fall above Threshold and below Target or above Target and below Maximum.

(vi)        Timing of Payment.  The payout, if any, of any Performance Award that vests under Section 4(b)(v) will be made as soon after the end of the Performance Period as the payment amount can be finally determined, but in no event later than March 15, 2015, unless it is administratively impracticable to do so, and such impracticability was not foreseeable at the end of 2014, in which case such payment shall be made as soon as administratively practicable after March 15, 2015.   
(vii)    Accelerated Vesting/Forfeiture upon Termination of Employment-Excluding Return on Invested Capital).  The portion of the Performance Awards attributable to Average Annual Operating Income Margin and Customer Service Performance are subject to the following terms and conditions.  
  
(A)     Without Cause or For Good Reason.  Upon a Participant's Termination of Employment by the Company without Cause or by the Participant for Good Reason (including the Termination of Employment of the Participant if he is employed by an Affiliate at the time the Company sells or otherwise divests itself of such Affiliate), the portion of the Participant's target Performance Award attributable to Average Annual Operating Income Margin and 

8

Customer Service Performance will be recalculated and will be the result of the following formula (the “Adjusted Performance Award”):  S × (T ÷ 24) where, 

S = the portion of the Participant's target Performance Award attributable to Average Annual Operating Income Margin and Customer Service Performance as of the Grant Date; and
T = the number of calendar months from January 1, 2013 to the date of such Termination of Employment (rounded up for any partial month).
 
Thereafter, the Participant will be eligible to receive a payment, if any, in cash based on the Adjusted Performance Award which will vest and become payable under Section 4(b)(v) in the same manner and to the same extent as if the Participant's employment had continued. 
(B)    Voluntary Resignation.  Upon a Participant's Termination of Employment by reason of a voluntary resignation (other than for Good Reason or Retirement) prior to the end of the workday on December 31, 2014, the Participant will immediately forfeit any unpaid portion of the Performance Award attributable to Average Annual Operating Income Margin and Customer Service Performance as of the date of such Termination of Employment. In the event a Participant incurs a Termination of Employment by reason of a voluntary resignation (other than for Good Reason or Retirement) on or after January 1, 2015, the Participant will remain eligible for any unpaid Performance Award attributable to Average Annual Operating Income Margin and Customer Service Performance, which award will vest and become payable under Section 4(b)(v) in the same manner and to the same extent as if the Participant's employment had continued.

(C)    Retirement.  Subject to Section 4(b)(vii)(F) below, upon a Participant's Termination of Employment due to Retirement, the portion of the Participant's target Performance Award attributable to Average Annual Operating Income Margin and Customer Service Performance will be recalculated in accordance with the formula set forth in Section 4(b)(vii)(A) above.  Thereafter, the Participant will be eligible to receive a payment, if any, in cash based on the Adjusted Performance Award which will vest and become payable under Section 4(b)(v) in the same manner and to the same extent as if the Participant's employment had continued. 
    
(D)    Death or Disability.  Upon a Participant's Termination of Employment due to death or Disability, the portion of the Participant's Performance Award attributable to Average Annual Operating Income Margin and Customer Service Performance will immediately become vested at the target level and such amount will be paid in cash as soon as practicable thereafter to the Participant or the Participant's estate, as applicable.

(E)     For Cause.  Upon a Participant's Termination of Employment by the Company for Cause, the Participant will immediately forfeit any unpaid portion of the Performance Award attributable to the Average Annual Operating Income Margin and Customer Service Performance measures as of the date of such Termination of Employment. 

(F)    Retirement-Eligible Participants Who Incur a Termination of Employment for Other Reasons.  If a Participant who is eligible for Retirement is, or would be, terminated by 

9

the Company without Cause, such Participant shall be considered to have been terminated by the Company without Cause for purposes of the TAP rather than having retired, but only if the Participant acknowledges that, absent Retirement, the Participant would have been terminated by the Company without Cause.  If, however, the employment of a Participant who is eligible for Retirement is terminated by the Company for Cause, then regardless of whether the Participant is considered as a retiree for purposes of any other program, plan or policy of the Company, for purposes of the TAP, the Participant's employment shall be considered to have been terminated by the Company for Cause.  

(viii)    Accelerated Vesting/Forfeiture upon Termination of Employment-Return on Invested Capital.  The portion of the Performance Awards attributable to Return on Invested Capital is subject to the following terms and conditions.  
(A)    Without Cause or For Good Reason.  Upon a Participant's Termination of Employment by the Company without Cause or by the Participant for Good Reason (including the Termination of Employment of the Participant if he is employed by an Affiliate at the time the Company sells or otherwise divests itself of such Affiliate), the Participant will be eligible to receive:
(1)    payment of any Earned Award in cash, which Earned Award will vest and become payable under Section 4(b)(v) in the same manner and to the same extent as if the Participant's employment had continued; and
(2)    with respect to the ROIC Installment outstanding in the calendar year of the Participant's Termination of Employment, if any, the Participant's ROIC Installment for such year will be recalculated and will be the result of the following formula (the “Adjusted ROIC Installment”):  U x (V ÷ 12) where,
U = the Participant's target Performance Award with respect to the applicable ROIC Installment, as of the Grant Date; and 
V = the number of calendar months from January 1 of the calendar year in which the Termination of Employment occurred to the date of such Termination of Employment (rounded up for any partial month).
Thereafter, the Participant will be eligible to receive a payment, if any, based on the Adjusted ROIC Installment which will vest and become payable under Section 4(b)(v) in the same manner and to the same extent as if the Participant's employment had continued.
Upon a participant's Termination of Employment by the Company without Cause or by the Participant for Good Reason, any ROIC Installment outstanding in the calendar year following the year in which the Participant's Termination of Employment occurred shall be immediately forfeited as of the date of such Termination of Employment. 
 (B)    Voluntary Resignation.  Upon a Participant's Termination of Employment by reason of a voluntary resignation (other than for Good Reason or Retirement) prior to the end of the workday on December 31, 2014, the Participant will immediately forfeit any unpaid portion of the Performance Award attributable to Return on Invested Capital, including any Earned Awards, as of the date of such Termination of Employment. In the event a Participant incurs a Termination of Employment by reason of a voluntary resignation (other than for Good 

10

Reason or Retirement) on or after January 1, 2015, the Participant will remain eligible for any unpaid Performance Award attributable to Return on Invested Capital, including any Earned Awards, which award will vest and become payable under Section 4(b)(v) in the same manner and to the same extent as if the Participant's employment had continued.
(C)    Retirement.  Subject to Section 4(b)(viii)(F) below, upon a Participant's Termination of Employment due to Retirement, the Participant will be eligible to receive:
(1)    payment of any Earned Award in cash, which Earned Award will vest and become payable under Section 4(b)(v) in the same manner and to the same extent as if the Participant's employment had continued; and
(2)    with respect to the ROIC Installment outstanding in the year of the Participant's Termination of Employment, the Participant's ROIC Installment for such year will be recalculated in accordance with the formula set forth in Section 4(b)(viii)(A) above.
Thereafter, the Participant will be eligible to receive a payment, if any, based on the Adjusted ROIC Installment which will vest and become payable under Section 4(b)(v) in the same manner and to the same extent as if the Participant's employment had continued.
Upon a participant's Termination of Employment by reason of Retirement, any ROIC Installment outstanding in the calendar year following the year in which the Participant's Termination of Employment occurred shall be immediately forfeited as of the date of such Termination of Employment.
(D)    Death or Disability.  Upon a Participant's Termination of Employment due to death or Disability, the Participant will be eligible to receive:
(1)    payment of any Earned Award, which Earned Award will immediately become vested and such amount will be paid in cash as soon as practicable thereafter to the Participant or the Participant's estate, as applicable; and
(2)     with respect to any remaining ROIC Installment(s) outstanding as of the date of the Participant's Termination of Employment, the Participant's ROIC Installment(s) will immediately become vested at the target level and such amount will be paid in cash as soon as practicable thereafter to the Participant or the Participant's estate, as applicable.
(E)     For Cause.  Upon a Participant's Termination of Employment by the Company for Cause, the Participant will immediately forfeit any unpaid portion of the Performance Award attributable to Return on Invested Capital, including any Earned Awards, as of the date of such Termination of Employment. 
(F)    Retirement-Eligible Participants Who Incur a Termination of Employment for Other Reasons.  If a Participant who is eligible for Retirement is, or would be, terminated by the Company without Cause, such Participant shall be considered to have been terminated by the Company without Cause for purposes of the TAP rather than having retired, but only if the Participant acknowledges that, absent Retirement, the Participant would have been terminated by the Company without Cause.  If, however, the employment of a Participant who is eligible for Retirement is terminated by the Company for Cause, then regardless of 

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whether the Participant is considered as a retiree for purposes of any other program, plan or policy of the Company, for purposes of the TAP, the Participant's employment shall be considered to have been terminated by the Company for Cause.  
(ix)    Change in Control.  Notwithstanding the forgoing and subject to Section 5 below, upon a Participant's Termination of Employment by the Company without Cause or by the Participant for Good Reason (including the Termination of Employment of the Participant if he is employed by an Affiliate at the time the Company sells or otherwise divests itself of such Affiliate) on or after a Change in Control but prior to the second anniversary of such Change in Control, the Participant's outstanding Performance Award shall immediately become vested at the target level (or, with respect to any Earned Award, at the level at which it was earned) and such amount will be paid in cash to the Participant as soon as practicable. With respect to any Participant who incurs a Termination of Employment by the Company without Cause or who resigns for Good Reason prior to a Change in Control, if a Change in Control occurs thereafter during the Performance Period, such Participant's Adjusted Performance Award, Adjusted ROIC Installment and Earned Awards, if any, will immediately become vested and be paid in cash to the Participant as soon as practicable.  
5.    Potential Reduction in Payments Due to Excise Tax.   In the event that a Participant becomes entitled to benefits under the TAP, then such benefits, together with any payment or consideration in the nature of value or compensation to or for the Participant's benefit under any other agreement with or plan of Delta, shall be subject to reduction as set forth in Section 4(e) of the 2009 Delta Air Lines, Inc. Officer and Director Severance Plan, which relates to the excise tax under Section 4999 of the Code.  
6.    Definitions.   For purposes of the TAP, the following definitions are hereby modified as set forth below and will apply in lieu of the definitions set forth in the 2007 Performance Plan or as modified, as applicable.
(a)For purposes of the TAP, “Good Reason” shall have the meaning set forth in the 2007 Performance Plan except the following will be ignored for purposes of determining whether a Participant has suffered a reduction that constitutes Good Reason under the TAP:  (i) any Award made to a Participant under the TAP; (ii) any long-term award made to a Participant under the 2007 Performance Plan; (iii) any other equity-based awards or other incentive compensation awards made to a Participant by Delta (or any Affiliate); and (iv) any retention payment or special travel benefits provided to a Participant as a result of his or her initial employment with Delta or any Affiliate.   

(b)    For purposes of the TAP, “Retirement” means a Termination of Employment (other than for Cause or death) either:  (i) on or after a Participant's 62nd birthday provided that such Participant has completed at least 5 years service since his or her most recent hire date with the Company (or an Affiliate or former Affiliate) or (ii) on or after a Participant's 52nd birthday provided that such Participant has completed at least 10 years service since his or her most recent hire date with the Company (or an Affiliate or former Affiliate).
7.    Clawback.  Notwithstanding anything to the contrary in the TAP and subject to further amendment of this Section 7 to the extent required to be in compliance with any applicable law or regulations or Delta's internal clawback policy, as it may be amended from time to time, if the Committee determines that a vice president or more senior officer level Participant has engaged in fraud or misconduct that caused, in whole or in part, the need for a required restatement of Delta's financial statements filed with the Securities and Exchange Commission, the Committee will review all incentive compensation awarded to or earned by the Participant, including, without limitation, any Award under the TAP, with respect to fiscal periods materially affected by the restatement and may recover from the Participant all such incentive compensation to the 

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extent that the Committee deems appropriate after taking into account the relevant facts and circumstances.  Any recoupment hereunder may be in addition to any other remedies that may be available to Delta under applicable law, including, disciplinary action up to and including termination of employment.          

8.    Section 409A of the Code. To the extent required to be in compliance with Section 409A of the Code, and the regulations promulgated thereunder (together, “Section 409A”), notwithstanding any other provision of this Plan, (a) any payment or benefit to which a Participant is eligible under the TAP, including a Participant who is a “specified employee” as defined in Section 409A, shall be adjusted or delayed and (b) any term of the TAP may be adjusted, in such manner as to comply with Section 409A and maintain the intent of the TAP to the maximum extent possible.  More specifically, to the extent any payment provided to a Participant under the TAP constitutes non excepted deferred compensation under Section 409A and the Participant is at the time of his termination of employment considered to be a “specified employee” pursuant to the Company's policy for determining such employees, the payment of any such non excepted amount and the provision of such non excepted benefits will be delayed for six months following the Participant's separation from service.    Notwithstanding the foregoing, Delta shall not have any liability to any Participant or any other person if any payment is determined to constitute “nonqualified deferred compensation” within the meaning of Section 409A and does not satisfy the additional conditions applicable to nonqualified deferred compensation under Section 409A.  

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