Document:

Exhibit 10.17

    
      

    

     

    Exhibit
      10.17

     

    

      July
        20,
        2005                    

      

      

      

      Mr.
        Glen
        Hauenstein 

      [address]

       

      Dear
        Glen:

      

      I
        am
        pleased to confirm our offer of employment for the position of Executive
        Vice
        President - Chief of Network & Revenue Management of Delta Air Lines, Inc.
        (Delta or the Company). As per our discussion, the effective date of your
        position will be August 1, 2005 (referred to as the Starting Date).

      

      The
        following information generally summarizes the terms of our
        agreement.

      

      Your
        base
        starting salary will be $405,000 per annum, payable in accordance with the
        usual
        payment practices of the Company. 

      

      With
        respect to each fiscal year, beginning with the fiscal year ending December
        31, 2005, during which you are employed by the Company as Executive Vice
        President - Chief of Network & Revenue Management, you will be eligible to
        receive in addition to your base salary an annual incentive compensation
        award
        opportunity (Annual Award Opportunity) for services rendered during such
        fiscal
        year, subject to the terms and conditions of the Company’s annual cash incentive
        plan as in effect from time to time. The amount of the Annual Award Opportunity
        paid, if any, with respect to any fiscal year will be based upon performance
        targets, award levels, and such other factors as are determined by the Personnel
        & Compensation Committee of the Board of Directors (or any successor
        committee designated by the Board) in its sole discretion. For fiscal year
        2005,
        your Annual Award Opportunity is expected to be 75% of annual base salary,
        but
        this opportunity will be pro-rated to reflect the portion of 2005 during
        which
        you were employed by Delta. 

      

      You
        will
        be paid a one-time cash signing bonus in the amount of $150,000.00 payable
        promptly after the Starting Date. If your employment with Delta terminates
        during the period (Retention Period) beginning with the Starting Date and
        ending
        180 days thereafter (inclusive) for any reason other than (i) Delta’s
        termination of your employment without Cause (as defined on Exhibit A attached
        to this letter) or (ii) your termination of employment for Good Reason (as
        defined on Exhibit A attached to this letter) or as a result of your death
        or
        Disability (as defined on Exhibit A attached to this letter), you shall pay
        back
        to Delta on the date of such termination of employment an amount determined
        by
        multiplying the cash signing bonus ($150,000.00) by a fraction, the numerator
        of
        which is the number of days from the day immediately following your termination
        of employment to the last day of the Retention Period and the denominator
        of
        which is 180.

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          Mr.
            Glen
            Hauenstein 

          July
            20,
            2005

          Page
            2

        

      

      

      

      The
        amount of the cash signing bonus will not constitute earnings for purposes
        of
        determining your benefits under any employee benefit plan, program or policy
        of
        Delta. 

      

      You
        will
        be granted 313,400 stock options under Delta’s 2000 Performance Compensation
        Plan with an exercise price equal to the fair market value of Delta common
        stock
        on the Starting Date. The options will expire at the end of a six year term
        and
        will become exercisable in three substantially equal installments on the
        first
        three anniversaries of the grant date. The complete terms and conditions
        of this
        award will be provided to you in the form of an Award Agreement at a later
        date,
        and your award will be subject to the terms of your Award Agreement and the
        2000
        Performance Compensation Plan. 

      

      Except
        as
        otherwise provided in this letter agreement, your employment with Delta will
        be
        subject to Delta’s standard policies and will be governed by the terms and
        conditions of the Human Resources Practices Manual, as may be amended from
        time
        to time hereafter. You will be provided with paid time off in accordance
        with
        Delta’s standard policy regarding these benefits, with the exception that you
        will begin to accrue vacation at the service level currently corresponding
        to
        four weeks of vacation. You will also be entitled to such fringe benefits
        as are
        provided to Executive Vice Presidents of the Company, including free and
        reduced
        rate travel, officers’ life insurance, financial counseling, and similar
        programs as in effect from time to time. 

      

      You
        will
        also be eligible to participate in Delta’s standard benefit programs, as amended
        from time to time, including the following:

      

      
        	1.	
                DeltaFlex,
                  our flexible benefits plan, which provides you with a menu of choices
                  for
                  medical, dental, vision and long-term disability benefits. You
                  will select
                  your coverage when you complete the enrollment process. A Benefits
                  Enrollment package will be mailed to your mailing address on file
                  in
                  Delta’s Human Resources database, generally within 10 days following
                  your
                  Starting Date. A two-week enrollment period is provided to make
                  your
                  benefit selections. Coverage is effective on the 1st
                  or
                  16th
                  of
                  the month following the close of the enrollment period. The enrollment
                  period dates and the Effective Date of Coverage are all included
                  in the
                  Benefits Enrollment package. You may consider continuation of coverage
                  under your current health care plan until Delta’s coverage
                  begins.

              

      

      

      
        	
                2.

              	
                The
                  Family-Care Disability and Survivorship Plan, which provides certain
                  short-term disability income to you and certain benefits in the
                  event of
                  death.

              

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          Mr.
            Glen
            Hauenstein 

          July
            20,
            2005

          Page
            3

        

      

      

      
        	
                3.

              	
                The
                  Delta Retirement Plan as amended and restated July 1, 2003, under
                  which
                  benefits will accrue in accordance with the terms of that plan
                  under the
                  cash balance formula only. In addition, Delta has a nonqualified
                  plan that
                  is designed to cover any excess benefits not payable by the Delta
                  Retirement Plan due to Internal Revenue Code § 415 or 401(a)(17)
                  limitations. 

              

      

      

      
        	
                4.

              	
                The
                  Delta Family-Care Savings Plan, which currently features participation
                  immediately upon employment, with pre-tax or post-tax employee
                  contributions of up to 13% (up to the limits of the Internal Revenue
                  Code)
                  and a 50% match on your contribution of the first 4% of base salary,
                  with
                  Delta’s maximum contribution equal to 2% of eligible earnings.
                  

              

      

      

      All
        consideration provided by Delta shall be provided subject to withholding
        and
        other federal, state and local taxes and deductions as provided by
        law.

      

      If
        the
        terms outlined reflect your understanding of our agreement and you accept
        employment based on these terms, please indicate your acceptance by signing
        the
        two original letters provided. Please keep one letter for your records and
        return the other to me.

      

      Glen,
        we
        are extremely pleased to have you on the Delta team, and we look forward
        with
        great pleasure to continuing our association with you in this important role
        at
        Delta.

      

      
        	 	
                Sincerely,

              
	 	
                Original
                  signed by:

              
	 	
                Beth
                  Johnston

              
	 	
                Vice
                  President

              
	 	
                Human
                  Resources

              

      

      

      DF/LK/EHJ:mm

      

      

      

      ________________________________________

      Glen
        Hauenstein

      ________________________________________

      Date

      

      Attachment

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          Mr.
            Glen
            Hauenstein 

          July
            20,
            2005

          Page
            4

        

      

       

      Exhibit
        A

      

      “Cause”
shall
        mean (A) your conviction for committing fraud or an intentional act of
        dishonesty with respect to Delta that results in your personal enrichment;
        (B)
        your conviction for committing a felony; or (C) your intentional wrongful
        act or
        gross negligence that has a detrimental effect on Delta, its subsidiaries
        or
        their respective business units or groups.

       

      “Disability”
shall
        mean disability as determined under the disability plan of Delta or a subsidiary
        thereof applicable to you.

       

      “Good
        Reason”
shall
        mean (A) the reduction or alteration in the nature or status of your authorities
        or titles, or the assignment to you of duties inconsistent with your
        authorities, duties, titles and responsibilities at Delta as of the Starting
        Date, other than an insubstantial and inadvertent act that is remedied by
        Delta
        promptly after receipt of notice thereof given by you; (B) a reduction by Delta
        of your base salary as in effect on the Starting Date (other than pursuant
        to a
        reduction by a uniform percentage of the base salary of all similarly situated
        executives of Delta); (C) Delta’s requiring you to be based at a location in
        excess of 50 miles from your principal job location or office on the Starting
        Date, (D) the failure by Delta to keep in effect compensation, retirement,
        health and welfare benefits, or perquisite programs under which you receive
        benefits substantially similar, in the aggregate, to the benefits under such
        programs as exist on the Starting Date (other than pursuant to an equivalent
        reduction in such benefits of all similarly situated executives of Delta),
        or
(E)
        any
        material breach by Delta of its obligations under this letter agreement or
        any
        failure of a successor of Delta to assume and agree to perform Delta’s entire
        obligations under this letter agreement, provided that such successor has
        received at least ten days written notice from Delta or you of the requirement
        to assume those obligations.Exhibit 10.18

    
      

    

    EXHIBIT
      10.18

    

    Description
      of Certain Benefits of Executive Officers

    

    Delta
      provides the following programs to its executive officers. Delta reserves the
      right to change, amend or terminate these benefits, consistent with the terms
      of
      the program, at any time for any reason for both active and retired employees,
      subject to any individual contractual rights.

    

    Executive
      Life Insurance:
      Delta
      provides life insurance coverage of two times base salary to executive officers
      through an endorsement split dollar program under which Delta owns the policy.
      Delta reimburses active participants for taxes associated with the program
      while
      the endorsement is in effect. After retirement, death benefit coverage continues
      for an executive officer who retires at or after age 62 with at least ten years
      of service. If an executive officer retires prior to age 62 or with less than
      ten years of service, the participant’s death benefit is reduced by 3% for each
      year of age less than 62 and by 10% for each year of service less than ten
      years. Insurance coverage ceases for executive officers who terminate employment
      other than as a result of retirement, approved long-term disability or death.
      

    

    Financial
      Planning Services:
      Executive officers are eligible for reimbursement of up to $15,000 per year
      for
      tax preparation, legal and financial planning services under Delta's Financial
      Planning Program. 

    

    Flight
      Benefits:
      As is
      common in the airline industry, Delta provides complimentary travel and certain
      Delta Crown Room privileges for executive officers, the officer’s spouse,
      domestic partner or designated companion, and the officer's dependent children.
      Delta reimburses the officer for associated taxes on complimentary travel with
      an imputed tax value of up to $20,000 per year. Executive officers who retire
      at
      or after age 52 with at least 10 years of service receive these travel
      privileges during their retirement, but do not receive reimbursement for
      associated taxes. By agreement with Delta, Mr. Campbell will be eligible for
      retiree Flight Benefits upon completing 5 years of service.

    

    Company
      Car:
      Delta
      provides a company car for its Chief Executive Officer. The value of any
      non-business use of the car is included in the officer’s taxable
      income.

    

    Home
      Security Services:
      Delta
      reimburses executive officers for installation and monthly monitoring of home
      security systems.

    

    Vacation:
      Delta’s
      standard policy regarding personal time off and paid holidays applies to Delta’s
      executive officers except that they will begin to accrue vacation at the service
      level currently corresponding to four weeks of
      vacation.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00122-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00122-of-00352.parquet"}]]