Document:

Exhibit 10.1

 

NORTHWEST AIRLINES CORPORATION

     STOCK INCENTIVE PLAN

 

Deferred Stock Award Agreement

 

THIS DEFERRED
STOCK AWARD AGREEMENT (the “Agreement”) is entered into as of                  ,
by and between NORTHWEST AIRLINES CORPORATION, a Delaware corporation (the “Company”),
and                  
(the “Grantee”), an employee of the Company or a subsidiary of the Company,
pursuant to and subject to the terms and conditions of the Northwest Airlines
Corporation      Stock Incentive Plan (as amended, the “Plan”).

 

WHEREAS, pursuant to the terms and conditions of the Plan and the terms
and conditions contained herein, the Company has
granted the Grantee on the Grant Date (as defined herein) a Deferred Stock
award as an inducement for the Grantee to remain an employee of the Company or
its subsidiary and to retain and motivate the Grantee during his employment
with the Company and its subsidiaries.

 

NOW, THEREFORE, in consideration of the mutual covenants herein
contained and other good and valuable consideration, receipt of which is hereby
acknowledged, the Company and the Grantee hereby agree as follows:

 

Section
1.  Definitions

 

Unless
otherwise defined in this Agreement, all capitalized terms used herein shall
have the meanings attributed to them in the Plan.

 

1.1                                 “Award”
shall mean the Deferred Stock award granted to the Grantee as of the Grant Date
on the terms and conditions set forth in this Agreement.

 

1.2                                 “Cause”
shall mean with respect to the termination of the Grantee’s employment with the
Company or a subsidiary of the Company: (a) an act or acts of personal
dishonesty by the Grantee intended to result in substantial personal enrichment
of the Grantee at the expense of the Company or its subsidiary, (b) an act or
acts of personal dishonesty by the Grantee intended to cause substantial injury
to the Company or its subsidiary, (c) material breach (other than as a result
of a Disability) by the Grantee of the Grantee’s obligations under the terms and
conditions of the Grantee’s employment, which action was (i) undertaken without
a reasonable belief that the action was in the best interests of the Company or
its subsidiary and (ii) not remedied within a reasonable period of time after
receipt of written notice from the Company or its subsidiary specifying the
alleged breach, or (d) the conviction of the Grantee of a felony.

 

1.3                                 “Change
in Control” shall mean any one of the following:

 

(a)                                  (i)
The acquisition by any individual, entity or group (within the meaning of
Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934 (the “Exchange
Act”)) (a “Person”), other than one or more Permitted Holders or their Related
Parties or

 

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any group
comprised exclusively of Permitted Holders or their Related Parties, of
beneficial ownership (within the meaning of Rule 13d-3 and 13d-5 promulgated
under the Exchange Act, except that such person shall be deemed to have “beneficial
ownership” of all shares that any such Person has the right to acquire, whether
such right is exercisable immediately or only after the passage of time) of 20%
or more (or, if such Person is an Institutional Investor (as such term is
defined in the Rights Agreement dated as of November 20, 1998 between Northwest
Airlines Corporation and Norwest Bank Minnesota, N.A.), 25% or more), of either
(A) the then outstanding shares of Common Stock of the Company (or its
successor by merger, consolidation or purchase of all or substantially all of
its assets) (the “Outstanding Common Stock”) or (B) the combined voting power
of the then outstanding voting securities of the Company (or its successor by
merger, consolidation or purchase of all or substantially all of its assets)
entitled to vote generally in the election of directors (the “Outstanding
Voting Securities”), and (ii) the Permitted Holders or their Related Parties
collectively “beneficially own” (within the meaning of Rule 13d-3 promulgated
under the Exchange Act) a lesser percentage of that which is described in each
of clause (A) and  (B) above and do not
have the right or ability by voting power, contract or otherwise to elect or
designate for election a majority of the board of directors of the Company or
such successor;

 

(b)                                 Individuals
who, as of the date hereof, constitute the Board of Directors of the Company
(the “Incumbent Board”) cease for any reason to constitute at least a majority
of such Board; provided, however, that any
individual becoming a director subsequent to the date hereof, whose election,
or nomination for election by the Company’s stockholders, was approved by a
vote of at least a majority of the directors then comprising the Incumbent
Board shall be considered as though such individual were a member of the
Incumbent Board, but excluding, for this purpose, any such individual whose
initial assumption of office occurs as a result of an actual or threatened
election contest with respect to the election or removal of directors or other
actual or threatened solicitation of proxies or consents by or on behalf of a
Person other than the Board of Directors of the Company;

 

(c)                                  Consummation
by the Company of a reorganization, merger or consolidation or sale or other
disposition of all or substantially all of the assets of the Company (a “Business
Combination”), in each case, unless, following such Business Combination, (i)
all or substantially all of the individuals and entities who were the
beneficial owners, respectively, of the Outstanding Common Stock and
Outstanding Voting Securities immediately prior to such Business Combination
beneficially own, directly or indirectly, more than 50% of, respectively, the
then outstanding shares of common stock and the combined voting power of the
then outstanding voting securities entitled to vote generally in the election
of directors, as the case may be, of the corporation resulting from such
Business Combination (including, without limitation, a corporation which as a
result of such transaction owns the Company or all or substantially all of the
Company’s assets either directly or through one or more subsidiaries) in
substantially the same proportions as their ownership immediately prior to such
Business Combination of the Outstanding Common Stock and Outstanding Voting
Securities, as

 

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the case may
be, and (ii) at least a majority of the members of the board of directors of
the corporation resulting from such Business Combination were members of the
Incumbent Board at the time of the execution of the initial agreement or of the
action of such Board providing for such Business Combination; or

 

(d)  Approval by the stockholders of the Company of a
complete liquidation or dissolution of the Company.

 

1.4                                 “Committee”
shall mean the Compensation Committee of the Company’s Board of Directors, or a
subcommittee thereof.

 

1.5                                 “Common
Stock” shall mean the common stock, par value $.01 per share, of the
Company or such other securities or property as may become subject to the Award
as a result of an adjustment made pursuant to Section 7 hereof.

 

1.6                                 “Deferred
Stock” shall mean the right to receive on the date set forth herein and
subject to the terms and conditions set forth in this Agreement the number of
shares of Common Stock specified in this Agreement.

 

1.7                                 “Disability”
shall mean the Grantee’s physical or mental condition which prevents continued
performance of his duties and for which the Grantee establishes by medical
evidence that such condition will be permanent and continuous during the
remainder of the Grantee’s life or is likely to be of at least three (3) years’
duration.

 

1.8                                 “Good
Reason” shall mean any one or more of the following:

 

(a)  a material reduction in Grantee’s
compensation or other benefits (other than as may be permitted in any agreement
between the Company or its subsidiary and the Grantee;

 

(b)  any material change in Grantee’s job responsibilities;
provided that, so long as Grantee retains a substantial part of Grantee’s then
current oversight responsibility, a transfer of a portion of such oversight
responsibility of Grantee shall not in and of itself constitute a material
change in Grantee’s job responsibilities; or

 

(c)  the relocation of the Company’s principal executive
offices to a location outside the Minneapolis-St. Paul Metropolitan Area.

 

In order for a Termination of
Employment to be considered for Good Reason, such termination must occur within
one (1) year after the event giving rise to such Good Reason.  Grantee’s continued employment shall not
constitute consent to, or a waiver of rights with respect to, any circumstance
constituting Good Reason hereunder.

 

1.9                                 “Grant
Date” shall mean            .

 

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1.10                           “Permitted
Holders” means each of Alfred A. Checchi, Gary L. Wilson, Frederic V. Malek
or Richard C. Blum and Richard C. Blum & Associates—NWA Partners, L.P., and
also includes the Company and any employee benefit plan (or related trust)
sponsored or maintained by the Company or any corporation controlled by the
Company.

 

1.11                           “Related
Parties” with respect to any Permitted Holders means (i) any spouse or
immediate family member of such Permitted Holder, any trust created primarily
for the benefit of any such individual or such individual’s estate, executor,
administrator, committee or other personal representatives or beneficiaries; or
(ii) any trust, corporation, partnership or other entity, the beneficiaries,
stockholders, partners, owners or Persons beneficially holding a majority

controlling interest of which consist of one or more of such Permitted Holders and/or
such other Person referred to in the immediately preceding clause (i).

 

1.12                           “Secretary”
shall mean the Secretary of the Company.

 

1.13                           “Termination
of Employment” shall mean the time when the employee-employer relationship
between the Grantee and the Company or its subsidiary ceases for any reason
whatsoever. The Grantee’s employment shall not be deemed to have been
terminated because of absence from active employment on account of temporary
illness or during authorized vacation or during temporary leaves of absence
from active employment granted by the Company or its subsidiary.

 

1.14                           “Vesting
Date(s)” shall mean                         .

 

1.15                           “Vesting
Period(s)” shall mean                         .

 

Section
2.  The Deferred Stock Award

 

For good and
valuable consideration, on the Grant Date the Company granted to the Grantee
pursuant to the Plan an Award of Deferred Stock with respect to               
(          ) shares of Common
Stock (which shares may be adjusted pursuant to Section 7 below) subject to the
terms and conditions set forth in this Agreement.

 

Section
3.  Vesting; Forfeiture

 

3.1                               Vesting. 
Subject to the terms and conditions of this Agreement, the shares of
Deferred Stock shall vest as follows:           [describe vesting schedule]             .

 

3.2                               Forfeiture; Termination of Employment.  Except as otherwise provided in this
Section 3.2 and subject to Section 3.3 hereof, if a Termination of Employment
occurs prior to a Vesting Date, all or the portion of the Award that has not
yet vested pursuant to Section 3.1 hereof shall be canceled immediately and the
Grantee shall automatically forfeit all rights with respect to all or such
portion of the shares of Deferred Stock subject to the Award as of the date of
such Termination of Employment; provided however, that (i) in the event a
Termination of Employment as a result of the Grantee’s death or Disability
occurs prior to any Vesting Date, the

 

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Grantee shall become vested on
the effective date of such Termination of Employment in                         ;
and (ii) in the event a Termination of Employment (other than in connection
with a Change in Control) by the Company other than for Cause or by the Grantee
for Good Reason occurs prior to any Vesting Date, the Grantee shall become
vested on the effective date of such Termination of Employment in                                        .

 

3.3                                 Change in Control.  Notwithstanding any other provision of this
Agreement, in the event of a Change in Control, the Deferred Stock shall vest
in accordance with the following:

 

(a)  If the Change in Control
occurs pursuant to Section 1.3(a) hereof, the Grantee shall become vested in full
in all shares of the Deferred Stock immediately upon termination of the Grantee’s
employment by the Company other than for Cause or by the Grantee with Good
Reason (i) at any time after the occurrence of the Change in Control or (ii)
before the occurrence of the Change in Control if such termination is in
connection with such Change in Control; and

 

(b)  If the Change in Control
occurs pursuant to Section 1.3(b), (c) or (d) hereof, the Grantee shall become
vested in full in all shares of the Deferred Stock immediately upon the
effective date of such Change in Control.

 

Section
4.  Restrictions on Transfer

 

Prior to
vesting of the Deferred Stock in accordance with Section 3 hereof, the Deferred
Stock is not transferable and may not be assigned, pledged or hypothecated and
shall not be subject to execution, attachment or similar process. No right or
benefit hereunder shall in any manner be liable for or subject to any debts,
contracts, liabilities or other obligations of the Grantee.

 

Section
5.  Issuance of Certificate

 

Except in the
event of a Termination of Employment described in clause (ii) of Section 3.2
hereof, promptly upon vesting of the Deferred Stock in accordance with Section
3 hereof, the Company shall cause to be issued a certificate or certificates
evidencing such vested shares and shall cause such certificate to be delivered
to the Grantee or the Grantee’s legal representatives, beneficiaries or
heirs.  In the event of a Termination of
Employment described in clause (ii) of Section 3.2 hereof (except for any
Termination of Employment that occurs in connection with a Change in Control),
the Company shall not be obligated to issue and deliver such certificate or
certificates to the Grantee until the earlier of the applicable Vesting Date or
the date the Deferred Stock vests in accordance with Section 3.3 hereof.

 

Section
6.  Securities Law Requirements

 

By accepting
the Award, the Grantee agrees that if at the time of delivery of certificates
for the Deferred Stock issued hereunder any sale of Common Stock is not covered
by an effective registration statement filed under the Securities Act of 1933
(the “Act”), the Grantee will acquire

 

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the Deferred Stock for the Grantee’s
own account and without a view to resale or distribution in violation of the
Act or any other securities law, and upon any such acquisition the Grantee will
enter into such written representations, warranties and agreements as the
Company may reasonably request in order to comply with the terms of this
Agreement, the Act or any other securities law.

 

Section
7.  Adjustments

 

In the event
of any merger, reorganization, consolidation, recapitalization, separation,
spin-off, liquidation, stock dividend, split-up, share combination or other
change in the corporate or capital structure of the Company affecting its
Common Stock (each a “Recapitalization Event”), then for all purposes
referenced herein to the Common Stock or to Deferred Stock shall mean and
include all securities or other property that holders of Common Stock are
entitled to receive in respect of shares of Common Stock by reason of each
Recapitalization Event, which securities or other property shall be treated in
the same manner and shall be subject to the same restrictions as the underlying
Deferred Stock.

 

Section
8.  Tax Withholding

 

The Company
shall have the right to (i) make deductions from the number of shares of Common
Stock otherwise deliverable upon the vesting of the shares of Deferred Stock in
accordance with Section 3 hereof in an amount sufficient to satisfy withholding
of any federal, state or local taxes required by law, or (ii) take such other
action as may be necessary or appropriate to satisfy any such tax withholding
obligations.

 

Section
9.  Award Does Not Confer Employment
or Stockholder Rights

 

  Nothing in this Agreement shall
confer upon the Grantee any right to continue in the employ of the Company or
its subsidiary or interfere in any way with the right of the Company or its
subsidiary to terminate the employment of the Grantee at any time.  The Grantee shall not have any of the rights
of a stockholder of the Company with respect to the shares of Deferred Stock
except and to the extent that, and until, such shares of Deferred Stock vest in
accordance with Section 3 hereof. The Grantee shall not be entitled to receive
any dividends with respect to the Deferred Stock which become payable during
the Vesting Period, nor shall the Grantee be entitled to vote the shares of
Deferred Stock during the Vesting Period.

 

Section
10.  General Provisions

 

10.1                           This
Agreement is made pursuant to the Plan and is subject to all of the terms and
provisions of the Plan as if the same were fully set forth herein. By
acceptance of the Award, the Grantee agrees to be bound by all of the terms,
provisions, conditions and limitations of the Plan and this Agreement.  The Grantee hereby acknowledges receipt of a
copy of the Plan.

 

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10.2                           For
purposes of the Award, the Committee in its reasonable discretion and subject
to the provisions hereof shall determine whether a Termination of Employment of
any type has occurred and such determination shall be conclusive and
determinative.

 

10.3                           The
headings of sections herein are included solely for convenience of reference
and shall not affect the meaning of any of the provisions of this Agreement.

 

10.4                           This
Agreement may be amended only by a writing executed by the parties hereto which
specifically states that it is amending this Agreement.

 

10.5                           The
laws of the State of Minnesota shall govern the interpretation, validity and
performance of the terms of this Agreement regardless of the law that might be
applied under principles of conflicts of laws.

 

10.6                           Any
suit, action or proceeding against the Grantee with respect to this Agreement,
or any judgment entered by any court in respect of any thereof, may be brought
in any court of competent jurisdiction in the State of Minnesota, as the
Company may elect in its sole discretion, and the Grantee hereby submits to the
non-exclusive jurisdiction of such courts for the purpose of any such suit,
action, proceeding or judgment.

 

10.7                           In
the event that any provision of this Agreement shall be held by any court of
competent jurisdiction illegal, invalid or unenforceable for any reason, such
provision shall be fully severable, but shall not affect the remaining
provisions of this Agreement and this Agreement shall be construed and enforced
as if the illegal, invalid or unenforceable provision had never been included
herein.

 

10.8                         All
notices and other communications provided for herein shall be in writing and
shall be deemed to have been duly given if delivered by hand (whether by
overnight courier or otherwise) or sent by registered or certified mail, return
receipt requested, postage prepaid, to the party to whom it is directed:

 

If to the
Company, to it at the following address:

 

Northwest
Airlines Corporation

2700 Lone Oak
Parkway

Dept. A1180

Eagan, MN  55121

Attn:  Secretary

 

If to the Grantee,
to him at the address set forth below under the Grantee’s signature; or at such
other address as either party shall from time to time specify by notice in
writing to the other party.

 

10.9                         This
Agreement may be executed in two or more counterparts, but all such
counterparts shall constitute but one and the same instrument.

 

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IN WITNESS
WHEREOF, this Agreement has been executed and delivered by the parties hereto.

 

NORTHWEST AIRLINES CORPORATION

 

 

	
  By:

  	
   

  	
   

  
	
  Name:

  
	
  Title:

  

 

 

GRANTEE:

 

 

	
   

  	
   

  	
   

  
	
  [insert
  Grantee’s name]

  

 

Grantee’s
Address:

 

 

 

8Exhibit 10.2

 

NORTHWEST AIRLINES CORPORATION

      STOCK
INCENTIVE PLAN

 

Restricted Stock Award Agreement

 

This RESTRICTED STOCK AWARD AGREEMENT (this “Agreement”), dated as of
the      day of        ,    ,
is entered into by and between NORTHWEST AIRLINES CORPORATION, a Delaware
corporation (the “Company”), and         ,
an employee of the Company or a subsidiary of the Company (the “Grantee” and,
together with the Company, the “Parties”).

 

RECITALS

 

WHEREAS, on        ,    
(the “Date of Grant”), the Compensation Committee (or a subcommittee thereof)
of the Board of Directors of the Company (the “Committee”) awarded the Grantee        
shares of the Company’s Common Stock, par value $0.01 (“Common Stock”),
pursuant to, and subject to the terms and provisions of the Company’s       
Stock Incentive Plan, as amended (the “Plan”).

 

NOW, THEREFORE, in consideration of the Grantee’s services to the
Company and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Parties hereto agree as
follows:

 

1.                                       Grant
of Restricted Stock and Escrow of Restricted Stock.

 

a.                                       Grant
of Restricted Stock.  The Grantee is
entitled to          shares of Common
Stock pursuant to the terms and conditions of this Agreement (the “Restricted
Stock”).

 

b.                                      Escrow
of Restricted Stock.  To insure the
availability for delivery of the Grantee’s Restricted Stock, the Grantee hereby
appoints the Secretary of the Company, or any other person designated by the
Company as escrow agent, as its attorney-in-fact to assign and transfer unto
the Company such Restricted Stock, if any, forfeited by the Grantee pursuant to
Section 4 below and shall, upon execution of this Agreement, deliver and
deposit with the Secretary of the Company, or such other person designated by
the Company, the share certificates representing the Restricted Stock, together
with the stock assignment duly endorsed in blank, attached hereto as Exhibit
A.  The Restricted Stock and stock
assignment shall be held by the Secretary in escrow until the Restricted Period
(as defined below) has lapsed with respect to the shares of Restricted Stock,
or until such time as this Agreement no longer is in effect.

 

2.                                       Restrictions
and Restricted Period.

 

a.                                       Restrictions.  Shares of Restricted Stock granted hereunder
may not be sold, assigned, transferred, pledged, hypothecated or otherwise
disposed of and 

 

 

shall be subject to a risk of forfeiture as described in Section 4
below until the lapse of the Restricted Period (as defined below).

 

b.                                      Restricted
Period.  Unless the Restricted Period
is previously terminated pursuant to Section 4 of this Agreement, the
restrictions set forth above shall lapse and the shares of Restricted Stock
shall become fully and freely transferable (provided, that such transfer is
otherwise in accordance with federal and state securities laws) and
non-forfeitable as to       [describe vesting schedule]           ,
beginning            ,     
(the “Restricted Period”). 
Notwithstanding anything to the contrary, the release of the shares of
Restricted Stock hereunder shall be conditioned upon Grantee making adequate
provision for federal, state or other tax withholding obligations, if any,
which arise upon the release of the shares from the Restricted Period (unless a
Section 83(b) election has been filed), whether by withholding, direct payment
to the Company, or otherwise.

 

3.                                       Rights
of a Stockholder.  From and after the
Date of Grant and for so long as the Restricted Stock is held by or for the
benefit of the Grantee, the Grantee shall have all the rights of a stockholder
of the Company with respect to the Restricted Stock, including, but not limited
to, the right to receive dividends and the right to vote such shares.

 

4.                                       Termination
of Employment.

 

a.                                       Termination
of Employment; Forfeiture of Restricted Stock.  Except as otherwise provided in this Section
4, in the event of the Grantee’s termination of employment during the
Restricted Period, the shares of Restricted Stock and any and all accrued but
unpaid dividends that are at that time subject to restrictions set forth
herein, shall be forfeited to the Company without payment of any consideration
by the Company, and neither the Grantee nor any of his successors, heirs,
assigns, or personal representatives shall thereafter have any further rights
or interests in such shares of Restricted Stock or certificates.

 

b.                                      Death
or Disability.  In the event a
termination of Grantee’s employment as a result of Grantee’s death or
Disability (as defined below) occurs during the Restricted Period, the
Restricted Period shall lapse with respect to              
shares of Restricted Stock that is at that time subject to restrictions set
forth herein.  The term “Disability”
shall mean the Grantee’s physical or mental condition which prevents continued
performance of Grantee’s duties and for which Grantee establishes by medical
evidence that such condition will be permanent and continuous during the
remainder of Grantee’s life or is likely to be of at least three (3) years’
duration.

 

c.                                       Termination
of Employment in Connection with a Change in Control.  In the event Grantee is employed by the
Company and there is a Change in Control (as defined in Annex A attached
hereto), the Restricted Period shall lapse in accordance with the following:

 

2

 

(i) If the Change in Control occurs pursuant
to Section (a) of such definition, then, immediately upon termination of
Grantee’s employment either after the occurrence of the Change in Control or
prior to such occurrence if such termination is in connection with such Change
in Control, the Restricted Period shall lapse with respect to all of the
Restricted Stock that is at that time subject to restrictions set forth herein.

 

(ii) If the Change in Control occurs pursuant
to Section (b), (c) or (d) of such definition, then, immediately upon the
effective date of such Change in Control, the Restricted Period shall lapse
with respect to all of the Restricted Stock that is at that time subject to
restrictions set forth herein.

 

5.                                       Certificates.  Restricted Stock granted herein may be
evidence in such manner as the Committee shall determine.  If certificates representing Restricted Stock
are registered in the name of the Grantee, then the Company shall retain physical
possession of the certificate.

 

6.                                       Legends.
All certificates representing any of the shares of Restricted Stock subject to
the provisions of this Agreement shall have endorsed thereon the following
legend:

 

“THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN
RESTRICTIONS UPON TRANSFER AS SET FORTH IN AN AGREEMENT BETWEEN THE COMPANY AND
THE HOLDER OF THE SHARES, A COPY OF WHICH IS ON FILE AT THE PRINCIPAL OFFICE OF
THE COMPANY.”

 

7.                                       Section
83(b) Election.  The Grantee hereby
acknowledges that he has been informed that, with respect to the grant of
Restricted Stock, an election may be filed by the Grantee with the Internal
Revenue Service, within 30 days of the Date of Grant, electing pursuant to
Section 83(b) of the Internal Revenue Code of 1986, as amended, to be taxed
currently on the fair market value of the Restricted Stock on the Date of
Grant.

 

THE GRANTEE ACKNOWLEDGES THAT IT IS THE GRANTEE’S SOLE RESPONSIBILITY
AND NOT THE COMPANY’S TO FILE TIMELY THE ELECTION UNDER SECTION 83(b) OF THE
CODE, EVEN IF THE GRANTEE REQUESTS THE COMPANY OR ITS REPRESENTATIVE TO MAKE
THIS FILING ON THE GRANTEE’S BEHALF.

 

BY SIGNING THIS AGREEMENT, THE GRANTEE REPRESENTS THAT HE HAS REVIEWED
WITH HIS OWN TAX ADVISORS THE FEDERAL, STATE, LOCAL AND FOREIGN TAX
CONSEQUENCES OF THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT AND THAT HE IS
RELYING SOLELY ON SUCH ADVISORS AND NOT ON ANY STATEMENTS OR REPRESENTATIONS OF
THE COMPANY OR ANY OF ITS AGENTS.  THE
GRANTEE UNDERSTANDS AND AGREES THAT HE (AND NOT THE

 

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COMPANY) SHALL BE RESPONSIBLE FOR ANY TAX LIABILITY THAT MAY ARISE AS A
RESULT OF THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT.

 

8.                                       Termination
of this Agreement.  Upon termination
of this Agreement, all rights of the Grantee hereunder shall cease.

 

9.                                       Miscellaneous.

 

a.                                       Notices.  Any notice required or permitted under this
Agreement shall be deemed given when delivered personally, or when deposited in
a United States Post Office, postage prepaid, addressed, as appropriate, to the
Grantee either at his address herein below set forth or such other address as
he may designate in writing to the Company, or to the Company to the attention
of the Secretary, at the Company’s address or such other address as the Company
may designate in writing to the Grantee.

 

b.                                      Failure
to Enforce Not a Waiver.  The failure
of the Company or the Grantee to enforce at any time any provision of this
Agreement shall in no way be construed to be a waiver of such provision or of
any other provision hereof.

 

c.                                       Governing
Law.  This Agreement shall be
governed by and construed according to the laws of the State of Minnesota
without giving effect to the choice of law principles thereof.

 

d.                                      Amendments.  This Agreement may be amended or modified at
any time by an instrument in writing signed by the Parties.

 

e.                                       Agreement
Not a Contract of Employment. 
Neither the grant of Restricted Stock, this Agreement nor any other
action taken in connection herewith shall constitute or be evidence of any
agreement or understanding, express or implied, that the Grantee is an employee
of the Company or any subsidiary of the Company.

 

f.                                         Entire
Agreement; Plan Controls.  This
Agreement and the Plan contain the entire understanding and agreement of the Parties
concerning the subject matter hereof, and supersede all earlier negotiations
and understandings, written or oral, between the Parties with respect
thereto.  This Agreement is made under
and subject to the provisions of the Plan, and all of the provisions of the
Plan are hereby incorporated by reference into this Agreement.  In the event of any conflict between the
provisions of this Agreement and the provisions of the Plan, the provisions of
the Plan shall govern.  By signing this
Agreement, the Grantee confirms that he has received a copy of the Plan and has
had an opportunity to review the contents thereof.

 

g.                                      Captions.  The captions and headings of the sections and
subsections of this Agreement are included for convenience only and are not to
be considered in construing or interpreting this Agreement.

 

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h.                                      Counterparts.  This Agreement may be executed in
counterparts, each of which when signed by the Company or the Grantee will be
deemed an original and all of which together will be deemed the same agreement.

 

i.                                          Assignment.  The Company may assign its rights and
delegate its duties under this Agreement. If any such assignment or delegation
requires consent of any state securities authorities, the parties agree to
cooperate in requesting such consent. This Agreement shall inure to the benefit
of the successors and assigns of the Company and, subject to the restrictions
on transfer herein set forth, be binding upon the Grantee, his heirs,
executors, administrators, successors and assigns.

 

j.                                          Severability.  This Agreement will be severable, and the
invalidity or unenforceability of any term or provision hereof will not affect
the validity or enforceability of this Agreement or of any other term or provision
hereof.  Furthermore, in lieu of any
invalid or unenforceable term or provision, the Parties intend that there be
added as a part of this Agreement a valid and enforceable provision as similar
in terms to such invalid or unenforceable provision as may be possible.

 

IN WITNESS WHEREOF, the Parties have executed this Agreement on the day
and year first above written.

 

NORTHWEST AIRLINES CORPORATION

 

 

	
  By

  	
   

  	
   

  
	
   

  	
  [Name]

  
	
   

  	
  [Title]

  

 

The undersigned hereby accepts and agrees to all the terms and
provisions of the foregoing Agreement.

 

 

 

 

 

Number of Shares

 

 

 

 

Address

 

5

 

ANNEX A

 

Definition of Change in Control

 

The term “Change in Control” shall mean any one of the
following:

 

(a)                                  (i)
The acquisition by any individual, entity or group (within the meaning of
Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934 (the “Exchange
Act”)) (a “Person”), other than one or more Permitted Holders or their Related
Parties or any group comprised exclusively of Permitted Holders or their
Related Parties, of beneficial ownership (within the meaning of Rule 13d-3 and
13d-5 promulgated under the Exchange Act, except that such person shall be
deemed to have “beneficial ownership” of all shares that any such Person has
the right to acquire, whether such right is exercisable immediately or only
after the passage of time) of 20% or more (or, if such Person is an
Institutional Investor (as such term is defined in the Rights Agreement dated
as of November 20, 1998 between Northwest Airlines Corporation and Norwest Bank
Minnesota, N.A.), 25% or more), of either (A) the then outstanding shares of
Common Stock of the Company (or its successor by merger, consolidation or
purchase of all or substantially all of its assets) (the “Outstanding Common
Stock”) or (B) the combined voting power of the then outstanding voting
securities of the Company (or its successor by merger, consolidation or
purchase of all or substantially all of its assets) entitled to vote generally
in the election of directors (the “Outstanding Voting Securities”), and (ii)
the Permitted Holders or their Related Parties collectively “beneficially own”
(within the meaning of Rule 13d-3 promulgated under the Exchange Act) a lesser
percentage of that which is described in each of clause (A) and  (B) above and do not have the right or
ability by voting power, contract or otherwise to elect or designate for
election a majority of the board of directors of the Company or such successor;

 

(b)                                 Individuals
who, as of the date hereof, constitute the Board of Directors of the Company
(the “Incumbent Board”) cease for any reason to constitute at least a majority
of such Board; provided, however, that any
individual becoming a director subsequent to the date hereof, whose election, or
nomination for election by the Company’s stockholders, was approved by a vote
of at least a majority of the directors then comprising the Incumbent Board
shall be considered as though such individual were a member of the Incumbent
Board, but excluding, for this purpose, any such individual whose initial
assumption of office occurs as a result of an actual or threatened election
contest with respect to the election or removal of directors or other actual or
threatened solicitation of proxies or consents by or on behalf of a Person
other than the Board of Directors of the Company;

 

(c)                                  Consummation
by the Company of a reorganization, merger or consolidation or sale or other
disposition of all or substantially all of the assets of the Company (a “Business
Combination”), in each case, unless, following such Business Combination, (i)
all or substantially all of the individuals and entities who were the
beneficial owners, respectively, of the Outstanding Common Stock and
Outstanding Voting Securities immediately prior to such Business Combination
beneficially own,

 

6

 

directly or indirectly, more than 50% of, respectively, the then
outstanding shares of common stock and the combined voting power of the then
outstanding voting securities entitled to vote generally in the election of
directors, as the case may be, of the corporation resulting from such Business
Combination (including, without limitation, a corporation which as a result of
such transaction owns the Company or all or substantially all of the Company’s
assets either directly or through one or more subsidiaries) in substantially
the same proportions as their ownership immediately prior to such Business
Combination of the Outstanding Common Stock and Outstanding Voting Securities,
as the case may be, and (ii) at least a majority of the members of the board of
directors of the corporation resulting from such Business Combination were
members of the Incumbent Board at the time of the execution of the initial agreement
or of the action of such Board providing for such Business Combination; or

 

(d)  Approval by the stockholders
of the Company of a complete liquidation or dissolution of the Company.

 

7

 

EXHIBIT A

 

ASSIGNMENT SEPARATE FROM CERTIFICATE

 

FOR VALUE RECEIVED, [                 ]
(the “Grantee”) hereby assigns and transfers unto NORTHWEST AIRLINES
CORPORATION, a Delaware corporation (the “Company”), (           )
shares of Company’s common stock, par value $0.01 per share (the “Common Stock”),
standing in his name on the books of said corporation represented by
Certificate No.      herewith and does hereby irrevocably
constitute and appoint                               
to transfer the said stock on the books of the within named corporation with
full power of substitution in the premises.

 

This Assignment Separate from Certificate may be used only in
accordance with the Restricted Stock Agreement (the “Agreement”) of the Company
and the undersigned dated           
  ,     .

 

	
  Dated:

  	
   

  	
  ,

  	
   

  	
   

  	
  Signature:

  	
   

  	
   

  

 

8

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