Document:

Exhibit 10.1

    
      
        

      

    

    Exhibit
      10.1

    DELTA
      AIR LINES, INC.

    2007
      PERFORMANCE COMPENSATION PLAN

     

    Section
      1.   Purpose.
      The
      purpose of the Delta Air Lines, Inc. 2007 Performance Compensation Plan is
      to
      enhance the incentive of those employees, members of the Board and other
      individuals who are expected to contribute significantly to the success of
      the
      Company and its Affiliates in achieving the Company’s short-term and long-term
      objectives and, in general, to further the best interests of the Company and
      its
      shareowners. 

     

    Section
      2.   Definition.

     

    As
      used
      in the Plan, the following terms shall have the meanings set forth
      below:

     

    (a)  “Act”
      means
      the Securities Exchange Act of 1934, as amended from time to time, and includes
      the applicable regulations promulgated thereunder.

     

    (b)  “Affiliate”
      means
      any entity that, directly or indirectly, controls or is controlled by or under
      common control with the Company. 

     

    (c)  “Award”
      means
      any
      Option, Stock Appreciation Right, Restricted Stock, Restricted Stock Unit,
      Performance Award or Other Stock-Based Award granted under the Plan, which
      may
      be denominated or settled in Shares, cash or in such other forms as provided
      for
      herein. 

     

    (d)  “Award
      Agreement”
      means
      any agreement, contract or other instrument or document evidencing any Award
      granted under the Plan, which may, but need not, be executed or acknowledged
      by
      a Participant, as determined by the Committee.

     

    (e)  “Board”
      means
      the board of directors of the Company.

     

    (f)  “Cause,”
      unless
      otherwise provided in an applicable Award Agreement, means a
      Participant’s:

     

    (i)
      continued, substantial failure to perform his duties with the Company or an
      Affiliate (other than any such failure resulting from incapacity due to physical
      or mental illness) after a written demand for substantial performance is
      delivered to the Participant which identifies the manner in which the Company
      or
      an Affiliate believes that the Participant has not performed his duties,
      or

     

    (ii)
      misconduct which is economically injurious to the Company or to any Affiliate,
      or

     

    (iii)
      conviction of, or plea of guilty or no contest to, a felony or any other crime
      involving moral turpitude, fraud, theft, embezzlement or dishonesty,
      or

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (iv)
      material violation of any material Company or Affiliate policy or rule regarding
      conduct, which policy or rule has been communicated in writing to the
      Participant.

     

    A
      Participant shall have at least ten (10) business days to cure, if curable,
      any
      of the events (other than clause (iii)) which could lead to his termination
      of
      Cause. For any Participant who is an Executive Vice President or more senior
      executive of the Company, a termination for Cause must be approved by a 2/3
      vote
      of the entire Board.

     

    (g)  “Change
      in Control,”
      unless
      otherwise provided in the applicable Award Agreement, means the occurrence
      after
      the Emergence Date of:

     

    (i)
      any
“person” (as defined in Section 13(d) of the Act) other
      than the Company, its Affiliates or an employee benefit plan or trust maintained
      by the Company or its Affiliates, becoming the “beneficial owner” (as defined in
      Rule 13d-3 under the Act), directly or indirectly, of more than 35% of the
      combined voting power of the Company’s then outstanding Voting Stock (excluding
      any “person” who becomes such a beneficial owner in connection with a
      transaction described in clause (A) of paragraph (iii) below), unless such
      person acquires beneficial ownership of more than 35% of the combined voting
      power of the Company’s Voting Stock then outstanding solely as a result of an
      acquisition of Company Voting Stock by the Company which, by reducing the
      Company Voting Stock outstanding, increases the proportionate Company Voting
      Stock beneficially owned by such person to more than 35% of the combined voting
      power of the Company’s Voting Stock then outstanding;
      provided,
      that if
      a person shall become the beneficial owner of more than 35% of the combined
      voting power of the Company’s Voting Stock then outstanding by reason of such
      Voting Stock acquisition by the Company and shall thereafter become the
      beneficial owner of any additional Company Voting Stock which causes the
      proportionate voting power of such Company Voting Stock beneficially owned
      by
      such person to increase to more than 35% of the combined voting power of such
      Voting Stock then outstanding, such person shall, upon becoming the beneficial
      owner of such additional Company Voting Stock, be deemed to have become the
      beneficial owner of more than 35% of the combined voting power of the Company’s
      Voting Stock then outstanding other than solely as a result of such Voting
      Stock
      acquisition by the Company;

     

    (ii)  at
      any
      time during a period of twelve consecutive
      months (but not including any period before the Emergence Date) individuals
      who
      at the beginning of such period constituted the Board (and any new member of
      the
      Board, whose election by the Board or nomination for election by the Company’s
      shareowners was approved by a vote of at least two-thirds of the members of
      the
      Board then still in office who either were members of the Board at the beginning
      of the period or whose election or nomination for election was so approved),
      cease for any reason to constitute a majority of members then constituting
      the
      Board; or

     

    
      
        
        

      

      
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    (iii)  the
      consummation of (A) a reorganization, merger or consolidation of the Company
      or
      any direct or indirect subsidiary of the Company with any other corporation,
      other than a reorganization, merger or consolidation which results in the
      Company’s Voting Stock outstanding immediately prior to such merger or
      consolidation continuing to represent (either by remaining outstanding or being
      converted into Voting Stock of the surviving entity or any parent thereof)
      more
      than 65% of the voting power of the Voting Stock or the total fair market value
      of the securities of the Company or such surviving entity or any parent thereof
      outstanding immediately after such merger or consolidation, or (B) any sale,
      lease, exchange or other transfer (in one transaction or a series of
      transactions) of assets of the Company having a total gross fair market value
      equal to more than 40% of the total gross Fair Market Value of all assets of
      the
      Company immediately prior to such transaction or transactions other than any
      such sale to an Affiliate.

     

    Notwithstanding
      the foregoing, in no event shall a Change in Control be deemed to have occurred
      with respect to a Participant if the Participant is part of a “group”, within
      the meaning of Section 13(d)(3) of the Act, which consummates the Change in
      Control transaction. In addition, for purposes of the definition of Change
      in
      Control, a person engaged in business as an underwriter of securities shall
      not
      be deemed to be the beneficial owner of, or to beneficially own, any securities
      acquired through such person’s participation in good faith in a firm commitment
      underwriting until the expiration of forty days after the date of such
      acquisition. 

     

    (h)  “Code”
      means
      the Internal Revenue Code of 1986, as amended from time to time, and includes
      the applicable regulations promulgated thereunder.

     

    (i)  “Committee”
      means
the
      Personnel and Compensation Committee of the Board or such other committee as
      may
      be designated by the Board. If the Board does not designate the Committee,
      references herein to the “Committee” shall refer to the Board.

     

    (j)  “Company”
      means
      Delta Air Lines, Inc.

     

    (k)   “Covered
      Employee”
      means an
      individual who is a “covered employee” within the meaning of Section 162(m)(3)
      of the Code or any successor provision thereto.

     

    (l)  “Disability”
      means
      long-term or permanent disability as determined under the disability plan of
      the
      Company or Affiliate applicable to the Participant. 

     

    (m)  “Emergence
      Date”
      means
      the effective date of the Plan of Reorganization.

     

    
      
        
        

      

      
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    (n)   “Emergence
      Grant”
      means an
      Option, Restricted Stock, or Performance Award that is approved as part of
      the
      Plan of Reorganization and that has a date of grant of the Emergence Date or
      such later date specified by the Committee. Specific terms applicable to the
      Emergence Grants are included at Appendix A. 

     

    (o)  “Fair
      Market Value”
      means
      with respect to Shares, the closing price of a Share on the date in question
      (or, if there is no reported sale on such date, on the last preceding date
      on
      which any reported sale occurred) on the principal stock exchange on which
      the
      Shares trade or are quoted, or if Shares are not so listed or quoted, fair
      market value as determined by the Committee, and with respect to any property
      other than Shares, the fair market value of such property determined by such
      methods or procedures as shall be established from time to time by the
      Committee.

     

    (p)  “Good
      Reason,”
      unless
      otherwise provided in an applicable Award Agreement, means
      any
      of the following which occur without a Participant’s express written
      consent:

     

    (i)  prior
      to
      a Change in Control, in the case of a Participant who is an Executive Vice
      President or more senior executive of the Company, a diminution or other
      reduction of such Participant’s authorities, duties or responsibilities, other
      than an insubstantial and inadvertent act that is promptly remedied by the
      Company after written notice by such Participant to the Chief Executive Officer
      of the Company;

     

    (ii) following
      a Change in Control, in the case of any Participant, a diminution or other
      reduction of such Participant’s authorities, duties or responsibilities, other
      than an insubstantial and inadvertent act that is promptly remedied by the
      Company or an Affiliate after written notice by such Participant to the Chief
      Executive Officer of the Company;

     

    (iii) 
      prior to
      a Change in Control, the Participant’s office is relocated by more than 50 miles
      and the relocation would place the Participant in a position of reduced status
      and importance within the Company or an Affiliate generally;

     

    (iv) following
      a Change in Control, the Participant’s office is relocated by more than 50
      miles;

     

    (v)
       a
      reduction of Participant’s base salary or incentive compensation opportunities,
      in either case other than pursuant to a uniform percentage salary reduction
      for
      similarly situated executives (or, following a Change in Control, all full-time
      domestic employees not subject to a collective bargaining agreement);

     

    (vi) the
      Company does not keep in effect compensation, retirement, health and welfare
      benefits, or perquisite programs under which the Participant receives benefits
      substantially similar, in the aggregate, to those in effect prior to a reduction
      (other than a reduction pursuant to an equivalent reduction in such benefits
      for
      similarly situated Participants (or, following a Change in Control, all
      full-time domestic employees who are not subject to a collective bargaining
      agreement)); or

     

    
      
        
        

      

      
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    (vii) a
      material breach by the Company or an Affiliate of any binding obligation to
      the
      Participant relating to a material term of the Participant’s employment,
      including but not limited to, indemnification or the terms of an Award
      hereunder, or any failure of a successor to the Company to assume and agree
      to
      perform such obligation. 

     

    Notwithstanding
      the foregoing, (A) the Emergence Grant will be ignored for purposes of
      determining whether a Participant has suffered a reduction that constitutes
      Good
      Reason under subsection 2(p)(v) or 2(p) (vi) above, (B) as to any Participant,
      an event described in subsections 2(p)(i) through (vii) above shall constitute
      Good Reason only if such Participant gives the Company written notice of intent
      to resign and the reasons therefore within ninety (90) days of the occurrence
      of
      such event, unless the Committee agrees otherwise, and (C) no event described
      in
      subsections 2(p)(i) through 2(p)(vii) which is curable shall constitute Good
      Reason if such event is cured by the Company or an Affiliate within ten (10)
      days of the Participant’s notice, given in accordance with (B)
      above. 

     

    (q)  “Incentive
      Stock Option”
      means an
      Option representing the right to purchase Shares from the Company, granted
      under
      and in accordance with the terms of Section
      6,
      that
(i)
      meets
      the requirements of Section 422 of the Code, or any successor provision thereto
      and (ii)
      is
      designated by the Committee as an Incentive Stock Option. 

     

    (r)   “Non-Qualified
      Stock Option”
      means an
      Option representing the right to purchase Shares from the Company, granted
      under
      and in accordance with the terms of Section
      6,
      that is
      not an Incentive Stock Option.

     

    (s)  “Option”
      means an
      Incentive Stock Option or a Non-Qualified Stock Option.

     

    (t)  “Other
      Stock-Based Award”
      means an
      Award granted pursuant to Section 10 of the Plan.

     

    (u)  “Participant”
      means
      the recipient of an Award granted under the Plan.

     

    (v)  “Performance
      Award”
      means an
      Award granted pursuant to Section 9 of the Plan.

     

    (w)  “Performance
      Period”
      means
      the period established by the Committee at the time any Performance Award is
      granted or at any time thereafter during which any performance goals specified
      by the Committee with respect to such Award are measured.

     

    
      
        
        

      

      
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    (x)  “Plan”
      means
      the Delta Air Lines, Inc. 2007 Performance Compensation Plan, as the same may
      be
      amended from time to time, including any appendices hereto.

     

    (y)  “Plan
      of Reorganization”
      means
      the Debtors’ Joint Plan of Reorganization under Chapter 11 of the Bankruptcy
      Code—Case No.
      05-17923 (ASH).

     

    (z)  “Qualified
      Performance-Based Compensation”
      means
      qualified performance-based compensation as defined in Treasury Regulation
      §1.162-27(e) or any successor thereto.

     

    (aa)  “Restricted
      Stock”
      means
      any Share granted under Section 8.

     

    (bb)  “RSU”
      or “Restricted Stock Unit”
      means a
      contractual right granted under Section 8 that is denominated in Shares. Each
      Unit shall represent a right to receive the value of one Share (or a percentage
      of such value) upon the terms and conditions set forth in the Plan and the
      applicable Award Agreement. Awards of Restricted Stock Units may include,
      without limitation, the right to receive dividend equivalents. 

     

    (cc)  “Retirement”
      means a
      Termination of Employment (other than for Cause or death) either (i) on or
      after
      a Participant’s 62nd
      birthday
      or (ii) on or after a Participant’s 52nd
      birthday
      provided that such Participant has completed at least 10 years service with
      the
      Company or an Affiliate. 

     

    (dd)  “SAR”
or
      “Stock
      Appreciation Right”
      means any
      right
      granted to a Participant pursuant to Section 7 to receive, upon exercise by
      the
      Participant, the excess of (i) the Fair Market Value of one Share on the date
      of
      exercise over (ii) the grant price of the right as specified by the
      Committee in its discretion, which, except in the case of Substitute Awards
      or
      in connection with an adjustment provided in Section 5(d), shall not be less
      than the Fair Market Value of one Share on the date of grant of the right.
      

     

    (ee)  “Shares”
      means
      shares of the common stock of the Company, par value $0.0001 per
      share.

     

    (ff)  “Substitute
      Awards”
      means
      awards granted in assumption of, or in substitution for, outstanding awards
      previously granted by a company acquired by the Company or an Affiliate or
      with
      which the Company or an Affiliate combines.

     

    (gg)  “Termination
      of Employment”
      means,
      in the case of a Participant who is an employee of the Company or any of its
      Affiliates, cessation of the employment relationship such that the Participant
      is no longer an employee of the Company or an Affiliate, or, in the case of
      a
      Participant who is an independent contractor, the date the performance of
      services for the Company or an Affiliate has ended; provided,
      however,
      that in
      the case of an employee, the transfer of employment from the Company to an
      Affiliate, from an Affiliate to the Company, from one Affiliate to another
      Affiliate or, unless the Committee determines otherwise, the cessation of
      employee status but the continuation of the performance of services for the
      Company or an Affiliate as an independent contractor shall not be deemed a
      Termination of Employment and, in the case of an independent contractor,
      performance of services as an employee shall not be deemed a termination of
      service that would constitute a Termination of Employment; and provided,
      further,
      that a
      Termination of Employment will be deemed to occur for a Participant employed
      by
      an Affiliate when an Affiliate ceases to be an Affiliate unless such
      Participant’s employment continues with the Company or another
      Affiliate.

     

    
      
        
        

      

      
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    (hh)  
      “Vesting
      Period”
      means
      with respect to an Award the period designated by the terms of the Plan or
      the
      applicable Award Agreement as the period over which services generally must
      be
      performed by the Participant receiving such Award in order for such Award to
      be
      100% vested and nonforfeitable.

     

    (ii)  “Voting
      Stock”
      means
      securities entitled to vote generally in the election of members of the board
      of
      directors.

     

    Section
      3.      
      Eligibility.  

     

    (a)  Scope. Any
      employee, member of the Board, consultant or other advisor of, or any other
      individual who provides services to, the Company or any Affiliate or any other
      entity in which the Company has a significant equity interest, shall be eligible
      to be selected to receive an Award under the Plan. 

     

    (b)  Substitute
      Awards. Holders
      of options and other types of awards granted by a company acquired by the
      Company or an Affiliate or with which the Company or an Affiliate combines
      are
      eligible for grant of Substitute Awards hereunder.

     

    Section
      4.      
      Administration. 

     

    (a)  The
      Committee. The
      Plan
      shall be administered by the Committee. The Committee shall be appointed by
      the
      Board. The Board may designate one or more directors as alternate members of
      the
      Committee who may replace any absent or disqualified member at any meeting
      of
      the Committee. To the extent permitted by applicable law, the Committee may
      delegate its authority to exercise all duties and responsibilities under the
      Plan, including those listed in Section 4(b) below, to
      any
      individual, group of individuals or committee except that any such delegation
      shall not be applicable to any Award for a
      person
      then covered by Section 16 of the Act. The Committee may issue rules and
      regulations for administration of the Plan. The Committee shall meet at such
      times and places as it may determine. 

     

    
      
        
        

      

      
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    (b)  Power
      and Authority. Subject
      to the terms of the Plan and applicable law, the Committee (or its delegate)
      shall have sole and absolute authority and discretion to: (i)
      designate Participants; (ii)
      determine the type or types of Awards (including Substitute Awards) to be
      granted to each Participant under the Plan; (iii)
      determine the number of Shares to be covered by (or with respect to which
      payments, rights, or other matters are to be calculated in connection with)
      Awards; (iv)
      determine the terms and conditions of any Award; (v)
      determine whether, to what extent, and under what circumstances Awards may
      be
      settled or exercised in cash, Shares, other securities, or other Awards, or
      canceled, forfeited or suspended, and the method or methods by which Awards
      may
      be settled, exercised, canceled, forfeited or suspended; (vi)
      determine whether, to what extent, and under what circumstances cash, Shares,
      other securities, other Awards, and other amounts payable with respect to an
      Award under the Plan shall be deferred either automatically or at the election
      of the holder thereof or of the Committee; (vii)
      interpret and administer the Plan and any instrument or agreement relating
      to,
      or Award made under, the Plan; (viii)
      establish, amend, suspend or waive such rules and regulations and appoint such
      agents as it shall deem appropriate for the proper administration of the Plan;
      and (ix)
      make any
      other determination and take any other action that the Committee deems necessary
      or desirable for the administration of the Plan.

     

    (c)  All
      Decisions Binding.
      All
      decisions of the Committee shall be final, conclusive and binding upon all
      parties, including the Company, the shareowners and the Participants unless
      a
      court of competent jurisdiction determines that such decision was arbitrary
      and
      capricious. 

     

    Section
      5.      
      Shares
      Available for Awards and Award Limitations.  

     

    (a)  Shares
      Available. Subject
      to adjustment as provided below, the maximum number of Shares available for
      distribution under the Plan will not exceed 30,000,000
      Shares. Notwithstanding the foregoing and subject to adjustment as provided
      in
Section
      5(d)
      and the
      limitations included in Section 12, no Participant may receive under the Plan
      in
      any calendar year (i) Options and SARs that relate to more than 2,000,000
       Shares;
      (ii) Restricted Stock and RSUs that relate to more than 1,000,000 Shares; or
      (iii) Performance Awards or Other Stock-Based Awards that relate to more than
      1,500,000 Shares; and the maximum amount that may be paid in a calendar year
      in
      respect of an annual Award denominated in cash or value other than Shares with
      respect to any Participant shall be $10,000,000, and the maximum amount of
      a
      long-term incentive Award denominated in cash shall be $10,000,000 multiplied
      by
      the number of years included in any applicable Performance Period(s) (and any
      applicable fraction for any Performance Period(s) of less than one year)
      relating to such Awards.  

     

    
      
        
        

      

      
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    (b)  Share
      Counting. Any
      Shares subject to an Award (but not including any Substitute Award), that
      expires, is cancelled, forfeited, or otherwise terminates without the delivery
      of Shares, including (i) the number of Shares surrendered or withheld in payment
      of any exercise or price of an Award or taxes related to an Award and (ii)
      any
      Shares subject to an Award to the extent that Award is settled without the
      issuance of Shares, shall again be, or shall become, available for distribution
      under the Plan; provided,
      however,
      that
      in
      the case of an SAR that is settled by the delivery of Shares, the number of
      Shares relating to such SAR that are being exercised shall be counted against
      the maximum aggregate number of Shares that may be issued under the Plan on
      the
      basis of one Share for every Share subject to the Award, regardless of the
      actual number of Shares used to settle the SAR upon exercise, and the number
      of
      Shares relating to such SAR that may again be available for distribution under
      the Plan is limited to the part of the SAR, if any, that is forfeited or
      expires.

     

    (c)  Type
      of Shares. Any
      Shares delivered pursuant to an Award may consist, in whole or in part, of
      authorized and unissued Shares or Shares acquired by the Company.

     

    (d)  Effect
      of Certain Changes. In
      the
      event that any dividend or other distribution (whether in the form of cash,
      Shares or other securities), recapitalization, stock split, reverse stock split,
      reorganization, merger, consolidation, split-up, spin-off, combination,
      repurchase or exchange of Shares or other securities of the Company, issuance
      of
      warrants or other rights to purchase Shares or other securities of the Company,
      or other similar corporate transaction or event affects the Shares such that
      an
      adjustment is appropriate in order to prevent dilution or enlargement of the
      benefits or potential benefits intended to be made available under the Plan,
      then the Committee shall adjust equitably any or all of (i)
      the
      number and type of Shares (or other securities) which thereafter may be made
      the
      subject of Awards, including the aggregate and individual limits specified
      in
Section
      5(a)
      and
      Section 12, (ii)
      the
      number and type of Shares (or other securities) subject to outstanding Awards,
      and (iii)
      the
      grant, purchase, or exercise price with respect to any Award or, if deemed
      appropriate, make provision for a cash payment to the holder of an outstanding
      Award; provided,
      however,
      that
      the number of Shares subject to any Award denominated in Shares shall always
      be
      a whole number. 

     

    (e)  Effect
      of Substitute Awards. Shares
      underlying Substitute Awards shall not reduce the number of Shares remaining
      available for distribution under the Plan. 

     

    
      
        
        

      

      
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    Section
      6.      
      Options.  

     

    (a)  Options
      Generally. The
      Committee is authorized to grant Options to Participants with the following
      terms and conditions and with such additional terms and conditions, in either
      case not inconsistent with the provisions of the Plan, as the Committee shall
      determine; provided,
      however,
      that
      unless an individual Award Agreement includes other terms, Options included
      in
      the Emergence Grant will be subject to the terms set forth on Appendix A
      hereto.

     

    (b)  Exercise
      Price. The
      exercise price per Share under an Option shall be determined by the Committee;
      provided,
      however,
      that,
      except in the case of Substitute Awards, such exercise price shall not be less
      than the Fair Market Value of a Share on the date of grant of such
      Option.

     

    (c)  Term. The
      term
      of each Option shall be fixed by the Committee but shall not exceed 10 years
      from the date of grant thereof.

     

    (d)  Vesting
      and Exercisability. The
      Committee shall determine the time or times at which an Option may be exercised
      in whole or in part with such time or times to be specified in the Award
      Agreement for the Option. 

     

    (e)  Payment
      of Exercise Price. The
      Committee shall determine the method or methods, including broker-assisted
      cashless exercise, by which, and the form or forms, including, without
      limitation, cash, Shares, other Awards, or any combination thereof, having
      a
      Fair Market Value on the exercise date equal to the relevant exercise price,
      in
      which, payment of the exercise price with respect thereto may be made or deemed
      to have been made. 

     

    (f)  Incentive
      Stock Options. The
      terms
      of any Incentive Stock Option granted under the Plan shall comply in all
      respects with the provisions of Section 422 of the Code, or any successor
      provision thereto, and any regulations promulgated thereunder.

     

    Section
      7.      
      Stock
      Appreciation Rights.

     

    (a)  SARs
      Generally. The
      Committee is authorized to grant SARs to Participants with such terms and
      conditions as the Committee shall determine not inconsistent with the provisions
      of the Plan.

     

    (b)  Grants. SARs
      may
      be granted to Participants either alone (“freestanding”)
      or in
      addition to other Awards granted under the Plan (“tandem”)
      and
      may, but need not, relate to a specific Option granted under Section
      6.

     

    (c)  Tandem
      SARs. Any
      tandem SAR related to an Option may be granted at the same time such Option
      is
      granted or at any time thereafter before exercise or expiration of such Option.
      In the case of any tandem SAR related to any Option, the SAR or applicable
      portion thereof shall not be exercisable until the related Option or applicable
      portion thereof is exercisable and shall terminate and no longer be exercisable
      upon the termination or exercise of the related Option, except that a SAR
      granted with respect to less than the full number of Shares covered by a related
      Option shall not be reduced until the exercise or termination of the related
      Option exceeds the number of Shares not covered by the SAR. Any Option related
      to any tandem SAR shall no longer be exercisable to the extent the related
      SAR
      has been exercised. 

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    (d)  Term. A
      freestanding SAR shall not have a term of greater than 10 years from the date
      of
      grant thereof, or, unless it is a Substitute Award, an exercise price less
      than
      100% of Fair Market Value of the Share on the date of grant. 

     

    Section
      8.       Restricted
      Stock
      and Restricted Stock Units.

     

    (a)  Restricted
      Stock and RSUs Generally. The
      Committee is authorized to grant Awards of Restricted Stock and RSUs to
      Participants with such terms and conditions as the Committee shall determine
      not
      inconsistent with the provisions of the Plan; provided,
      however,
      that
      unless an individual Award Agreement includes other terms, Restricted Stock
      and
      RSUs included in the Emergence Grant will be subject to the terms set forth
      on
      Appendix A hereto.

     

    (b)  Restrictions. Shares
      of
      Restricted Stock and RSUs shall be subject to such restrictions as the Committee
      may impose (including, without limitation, any limitation on the right to vote
      a
      Share of Restricted Stock or the right to receive any dividend or other right),
      which restrictions may lapse or be waived by the Committee separately or in
      combination at such time or times, in such installments or otherwise, as the
      Committee may deem appropriate.

     

    (c)  Evidence
      of Award. Any
      share
      of Restricted Stock may be evidenced in such manner as the Committee may deem
      appropriate including, without limitation, book-entry registration or issuance
      of a stock certificate or certificates. In the event any stock certificate
      is
      issued in respect of shares of Restricted Stock, such certificate shall be
      registered in the name of the Participant and shall bear an appropriate legend
      referring to the terms, conditions, and restrictions applicable to such
      Restricted Stock.

     

    (d)  Qualified
      Performance-Based Compensation. An
      Award
      under this Section 8 shall, if the Committee intends that such Award should
      constitute Qualified Performance-Based Compensation, comply with Section 12
      of
      the Plan. 

     

    Section
      9.     
       Performance
      Awards. 

     

    (a)  Performance
      Awards Generally. The
      Committee is authorized to grant Performance Awards to Participants with such
      terms and conditions as the Committee shall determine not inconsistent with
      the
      provisions of the Plan; provided,
      however,
      that
      unless an individual Award Agreement includes other terms, Performance Awards
      included in the Emergence Grant will be subject to the terms set forth on
      Appendix A hereto.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    (b)  Denomination;
      Performance Goals. Performance
      Awards may be denominated as a cash amount, number of Shares, or a combination
      thereof and are Awards which may be earned upon achievement or satisfaction
      of
      performance conditions specified by the Committee. The Committee may use such
      business criteria and other measures of performance as it may deem appropriate
      in establishing any performance conditions. Subject to the terms of the Plan,
      the performance goals to be achieved during any Performance Period, the length
      of any Performance Period, the amount of any Performance Award granted and
      the
      amount of any payment or transfer to be made pursuant to any Performance Award
      shall be determined by the Committee. 

     

    (c)  Qualified
      Performance-Based Compensation. Every
      Performance Award shall, if the Committee intends that such Award should
      constitute Qualified Performance-Based Compensation, comply with Section 12
      of
      the Plan. Except in the case of an Award intended to qualify as Qualified
      Performance-Based Compensation, if the Committee determines, in its discretion,
      that external changes or other unanticipated business conditions have materially
      affected the fairness of the performance goals, then the Committee may approve
      appropriate adjustments to the performance goals (either up or down) in whole
      or
      in part. Performance measures may vary from Performance Award to Performance
      Award, respectively, and from Participant to Participant, and may be established
      on a stand-alone basis, in tandem or in the alternative. 

     

    (d)  Settlement
      of Performance Awards; Other Terms. Settlement
      of Performance Awards shall be in cash, Shares, other Awards or other property,
      or a combination thereof, in the discretion of the Committee, as may be
      specified in the applicable Award Agreement or as otherwise may be determined
      by
      the Committee. Performance Awards will be distributed only after the end of
      the
      relevant Performance Period. The Committee may, in its discretion, increase
      or
      reduce the amount of a settlement otherwise to be made in connection with such
      Performance Awards. 

     

    Section
      10.   
      Other
      Stock-Based Awards.  

     

     (a)   Other
      Stock-Based Awards Generally. The
      Committee is authorized to grant Other Stock-Based Awards to Participants with
      terms and conditions as the Committee shall determine not inconsistent with
      the
      provisions of the Plan. Every Other Stock-Based Award shall, if the Committee
      intends that such Award should constitute Qualified Performance-Based
      Compensation, comply with Section 12 of the Plan.

    
       

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

       

    

    (b)   Denomination;
      Purchase Rights. The
      Committee is authorized, subject to limitations under applicable law, to grant
      to Participants such other Awards that may be denominated or payable in, valued
      in whole or in part by reference to, or otherwise based on, or related to,
      Shares or factors that may influence the value of Shares, including, without
      limitation, convertible or exchangeable debt securities, other rights
      convertible or exchangeable into Shares, purchase rights for Shares, Awards
      with
      value and payment contingent upon performance of the Company or business units
      thereof or any other factors designated by the Committee. Shares delivered
      pursuant to an Award in the nature of a purchase right granted under this
      Section 10 shall be purchased for such consideration, paid for at such times,
      by
      such methods, and in such forms, including, without limitation, cash, Shares,
      other Awards, notes, or other property, as the Committee shall determine. Cash
      Awards, as stand-alone Awards or as an element of or supplement to any other
      Award under the Plan, may also be granted pursuant to this Section
      10.

     

    Section
      11.     Effect
      of Termination of Employment and a Change in Control on
      Awards.  At
      the
      time of grant of an Award the Committee shall provide, by rule or regulation
      or
      in any Award Agreement, or may determine at any time in any individual case,
      the
      circumstances in which Awards shall be exercised, vested, paid or forfeited
      in
      the event a Participant ceases to provide service to the Company or any
      Affiliate or in the event of a Change in Control prior to the end of a
      Performance Period or exercise or settlement of such Award. Notwithstanding
      the
      foregoing, Emergence Grants will be subject to the terms of Appendix A.

     

    Section
      12.   
      Qualified
      Performance-Based Compensation. 

     

    (a)  Pre-Established
      Formula Required. Every
      Award that is intended to constitute Qualified Performance-Based Compensation
      shall include a pre-established formula, such that exercise, payment, retention
      or vesting of the Award is subject to the achievement during a Performance
      Period or Performance Periods, as determined by the Committee, of a level or
      levels of, or improvements in, in each case as determined by the Committee,
      one
      or more performance measures with respect to the Company, any Affiliate and/or
      any business unit of the Company or any Affiliate, based on the following:
      

     

    (i)  any
      of
      the following financial measures: revenue per available seat mile; cost per
      available seat mile; total shareowner return; return on equity, assets, capital
      or investment; operating, pre-tax or net income levels expressed in either
      absolute dollars, earnings per share, or changes of the same; the market price
      of Shares; economic or cash value added; capitalization; net or operating profit
      margin; revenues or revenue growth; expenses; cash flow; operating cash flow
      or
      liquidity; or earnings
      before interest, taxes, depreciation, amortization and aircraft rent;
      

     

    (ii)  the
      results of employee satisfaction surveys;

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    (iii) the
      results of customer satisfaction surveys; and

     

    (iv) other
      measures of operational performance (including, without limitation, U.S.
      Department of Transportation performance rankings in operational areas),
      quality, safety, productivity or process improvement. 

     

    Performance
      criteria may be measured on an absolute (e.g.,
      plan or
      budget) or relative basis. Relative performance may be measured against a group
      of peer companies, a financial market index, or other acceptable objective
      and
      quantifiable indices. 

     

    (b)  Other
      Restrictions. In
      addition to the Award limitations set forth in Section 5(a), the Committee
      shall
      have the power to impose such other restrictions on Awards subject to this
      Section 12 as it may deem necessary or appropriate to ensure that such Awards
      satisfy all requirements for Qualified Performance-Based Compensation.
      Notwithstanding any provision of the Plan to the contrary, the Committee shall
      not be authorized to increase the amount payable to a Covered Employee under
      any
      Award to which this Section 12 applies upon attainment of such pre-established
      formula.

     

     (c)  Certain
      Changes Prohibited. Any
      settlement which changes the form of payment from that originally specified
      for
      an Award intended to constitute a Qualified Performance-Based Award shall be
      implemented in a manner such that the Award does not, solely for that reason,
      fail to qualify as Qualified Performance-Based Compensation. 

     

    Section
      13.    
      General
      Provisions Applicable to Awards.  

     

    (a)  Restrictive
      Covenants. The
      Committee may impose such restrictions on any Award with respect to
      non-competition, confidentiality and other conduct as it deems necessary or
      appropriate in its discretion.

     

    (b)  Configuration
      of Awards. Awards
      may, in the discretion of the Committee, be granted either alone or in addition
      to or in tandem with any other Award or any award granted under any other plan
      of the Company. Awards granted in addition to or in tandem with other Awards,
      or
      in addition to or in tandem with awards granted under any other plan of the
      Company, may be granted either at the same time as or at a different time from
      the grant of such other Awards or awards. Awards may be granted for no cash
      consideration or for such minimal cash consideration as may be required by
      applicable law. 

     

    (c)  Form
      of Payment. Subject
      to the terms of the Plan and the applicable Award Agreement, payments or
      transfers to be made by the Company upon the grant, exercise or payment of
      an
      Award may be made in the form of cash, Shares, other securities or other Awards,
      or any combination thereof, as determined by the Committee in its discretion
      at
      the time of grant or as of the time of such exercise or payment, and may be
      made
      in a single payment or transfer, in installments, or on a deferred basis, in
      each case in accordance with rules and procedures established by the Committee.
      Such rules and procedures may include, without limitation, provisions for the
      payment or crediting of reasonable interest on installment or deferred payments
      or the grant or crediting of dividend equivalents in respect of installment
      or
      deferred payments. 

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    (d)  Nontransferability. Except
      as
      may be permitted by the Committee or as specifically provided in an Award
      Agreement, (i)
      no Award
      and no right under any Award shall be assignable, alienable, pledgeable,
      saleable or transferable by a Participant otherwise than by will or pursuant
      to
      Section 13(e) and (ii)
      each
      Award, and each right under any Award, shall be exercisable during the
      Participant’s lifetime only by the Participant or, if permissible under
      applicable law, by the Participant’s guardian or legal representative. The
      provisions of this paragraph shall not apply to any Award which has been fully
      exercised or paid, as the case may be, and shall not preclude forfeiture of
      an
      Award in accordance with the terms thereof. 

     

    (e)  Participant’s
      Death. Upon
      the
      death of a Participant, the beneficiary eligible to receive payments or other
      benefits or exercise rights that are available under the Plan at the
      Participant’s death shall be the Participant’s estate. 

     

    (f)  Legended
      Certificates. All
      certificates for Shares and/or Shares or other securities delivered under the
      Plan pursuant to any Award or the exercise thereof shall be subject to such
      stop
      transfer orders and other restrictions as the Committee may deem advisable
      under
      the Plan or the rules, regulations, and other requirements of the Securities
      and
      Exchange Commission, any stock exchange upon which such Shares or other
      securities are then listed, and any applicable Federal or state securities
      laws,
      and the Committee may cause a legend or legends to be put on any such
      certificates to make appropriate reference to such restrictions.

     

    Section
      14.    
      Amendments
      and Termination. 

     

    (a)  The
      Plan. Except
      to
      the extent prohibited by applicable law and unless otherwise expressly provided
      in an Award Agreement or in the Plan, the Board or the Committee may amend,
      alter, suspend, discontinue, or terminate the Plan or any portion thereof at
      any
      time; provided,
      however,
      that no
      such amendment, alteration, suspension, discontinuation or termination shall
      be
      made without (i) shareowner approval if such approval is required by the listed
      company rules of the stock exchange, if any, on which the Shares are principally
      traded or quoted or (ii) with respect to any affected Participant, the consent
      of such Participant if such action would adversely affect the rights of such
      Participant under any outstanding Award, except to the extent any such
      amendment, alteration, suspension, discontinuance or termination is made to
      cause the Plan to comply with applicable law, stock exchange rules and
      regulations or accounting or tax rules and regulations. Notwithstanding anything
      to the contrary herein, the Committee may amend the Plan in such manner as
      may
      be necessary to enable the Plan to achieve its stated purposes in any
      jurisdiction in a tax-efficient manner and in compliance with local rules and
      regulations.

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    (b)  Awards. The
      Committee may waive any conditions or rights under, amend any terms of, or
      amend, alter, suspend, discontinue or terminate, any Award theretofore granted,
      prospectively or retroactively, without the consent of any relevant Participant
      or holder or beneficiary of an Award; provided,
      however,
      that no
      such action shall adversely affect the rights of any affected Participant or
      holder or beneficiary (without such person’s consent) under any Award
      theretofore granted under the Plan, except to the extent any such action is
      made
      to cause the Plan to comply with applicable law, stock exchange rules and
      regulations or accounting or tax rules and regulations; and provided further
      that,
      except as provided in Section
      5(d),
      no such
      action shall directly or indirectly, through cancellation and regrant or any
      other method, reduce, or have the effect of reducing, the exercise price of
      any
      Award established at the time of grant thereof and provided further,
      that
      the Committee’s authority under this Section
      14(b)
      is
      limited in the case of Awards subject to Section 12, as set forth in Section
      12.

     

    (c)  Certain
      Equitable Adjustments. Except
      as
      noted in Section 12, the Committee shall be authorized to make adjustments
      in
      the terms and conditions of, and the criteria included in, Awards in recognition
      of events (including, without limitation, the events described in Section
      5(d))
      affecting the Company, or the financial statements of the Company, or of changes
      in applicable laws, regulations or accounting principles, whenever the Committee
      determines that such adjustments are appropriate in order to prevent dilution
      or
      enlargement of the benefits or potential benefits intended to be made available
      under the Plan.

     

    (d)  Cancellation
      of Awards. Any
      provision of the Plan or any Award Agreement to the contrary notwithstanding,
      the Committee may cause any Award granted hereunder to be canceled in
      consideration of a cash payment or alternative Award made to the holder of
      such
      canceled Award equal in value to the Fair Market Value of such canceled Award
      as
      of the date of cancellation, except that this Section
      14(d)
      shall
      not be interpreted to permit any transaction that is prohibited by the second
      proviso of Section
      14(b)
      relating
      to the direct or indirect repricing of Awards. 

     

    (e)  Corrections
      and Clarifications. The
      Committee may correct any defect, supply any omission, or reconcile any
      inconsistency in the Plan or any Award in the manner and to the extent it shall
      deem desirable to carry the Plan into effect.

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

     

    Section
      15.    
      Miscellaneous.
       

     

    (a)  No
      Uniformity Required; No Promise of Future Grants. No
      employee, Participant or other person shall have any claim to be granted any
      Award under the Plan, and there is no obligation for uniformity of treatment
      of
      employees, Participants, or holders or beneficiaries of Awards under the Plan.
      The terms and conditions of Awards need not be the same with respect to each
      recipient. Any Award granted under the Plan shall be a one-time Award which
      does
      not constitute a promise of future grants. The Committee, in its discretion,
      maintains the sole right to make grants hereunder.

     

    (b)  No
      Rights as Shareowner. A
      Participant granted an Award shall have no rights as a shareowner of the Company
      with respect to such Award unless and until such time as certificates or
      book-entry shares for the Shares underlying the Award are registered in such
      Participant’s name in the Company’s stock records.

     

    (c)  Withholdings. The
      Company shall be authorized to withhold from any Award granted or any payment
      due or transfer made under any Award or under the Plan or from any compensation
      or other amount owing to a Participant the amount (in cash, Shares, other
      securities or other Awards) of withholding taxes due in respect of an Award,
      its
      exercise, or any payment or transfer under such Award or under the Plan and
      to
      take such other action (including, without limitation, providing for elective
      payment of such amounts in cash or Shares by the Participant) as may be
      necessary in the opinion of the Company to satisfy all obligations for the
      payment of such taxes.

     

    (d)  Other
      Compensation Arrangements. Nothing
      contained in the Plan shall prevent the Company from adopting or continuing
      in
      effect other or additional compensation arrangements, and such arrangements
      may
      be either generally applicable or applicable only in specific
      cases.

     

    (e)  No
      Right to Continued Employment. The
      grant
      of an Award shall not be construed as giving a Participant the right to be
      retained in the employ of, or to continue to provide services to, the Company
      or
      any Affiliate. Further, the Company or the applicable Affiliate may at any
      time
      dismiss a Participant, free from any liability, or any claim under the Plan,
      unless otherwise expressly provided in the Plan or in any Award Agreement or
      in
      any other agreement binding the parties. The receipt of any Award under the
      Plan
      is not intended to confer any rights on the receiving Participant except as
      set
      forth in the applicable Award Agreement.

     

    (f)  Governing
      Law; Construction of Plan. The
      Plan
      and all determinations made and actions taken thereunder shall be governed
      by
      the internal substantive laws of the State of Delaware and construed
      accordingly, to the extent not superseded by applicable federal law. If any
      provision of the Plan or any Award is or becomes or is deemed to be invalid,
      illegal, or unenforceable in any jurisdiction, or as to any person or Award,
      or
      would disqualify the Plan or any Award under any law deemed applicable by the
      Committee, such provision shall be construed or deemed amended to conform to
      applicable laws, or if it cannot be so construed or deemed amended without,
      in
      the determination of the Committee, materially altering the intent of the Plan
      or the Award, such provision shall be stricken as to such jurisdiction, person
      or Award, and the remainder of the Plan and any such Award shall remain in
      full
      force and effect.

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

     

    (g)  Unfunded
      and Unsecured Arrangement. Neither
      the Plan nor any Award shall create or be construed to create a trust or
      separate fund of any kind or a fiduciary relationship between the Company and
      a
      Participant or any other person. To the extent that any person acquires a right
      to receive payments from the Company pursuant to an Award, such right shall
      be
      no greater than the right of any unsecured general creditor of the
      Company.

     

    (h)  No
      Fractional Shares. No
      fractional Shares shall be issued or delivered pursuant to the Plan or any
      Award, and the Committee shall determine whether cash or other securities shall
      be paid or transferred in lieu of any fractional Shares, or whether such
      fractional Shares or any rights thereto shall be canceled, terminated or
      otherwise eliminated.

     

    Section
      16.    
      Effective
      Date of the Plan. The
      Plan
      shall be effective as of the Emergence Date.

     

    Section
      17.    
      Term
      of the Plan. No
      Award
      shall be granted under the Plan on or after the ten year anniversary of its
      adoption by the Board. However, unless otherwise expressly provided in the
      Plan
      or in an applicable Award Agreement, any Award theretofore granted may extend
      beyond such date, and the authority of the Committee to amend, alter, adjust,
      suspend, discontinue, or terminate any such Award, or to waive any conditions
      or
      rights under any such Award, and the authority of the Board or the Committee
      to
      amend the Plan, shall extend beyond such date.

     

    Section
      18.   
      Section
      409A of the Code. With
      respect to Awards subject to Section 409A of the Code, the Plan is intended
      to
      comply with the requirements of Section 409A, and the provisions hereof shall
      be
      interpreted in a manner that satisfies the requirements of Section 409A and
      the
      related regulations, and the Plan shall be operated accordingly. If any
      provision of the Plan or any term or condition of any Award would otherwise
      frustrate or conflict with this intent, the provision, term or condition will
      be
      interpreted and deemed amended by the Committee so as to avoid this
      conflict.
      Notwithstanding
      the foregoing, neither the Company nor the Committee shall have any liability
      to
      any Participant or any other person if an Award is determined to constitute
      “nonqualified deferred compensation” within the meaning of Section 409A of the
      Code and the terms of such Award do not satisfy the additional conditions
      applicable to nonqualified deferred compensation under Section 409A of the
      Code.

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

     

    

      APPENDIX
        A 

       

      TERMS
        OF EMERGENCE GRANTS

       

      The
        terms
        of this Appendix A shall apply to all Awards included in Emergence Grants.
        

       

      A.     OPTIONS.

       

      1. 
Award
        Grant.
        The
        Company grants to the Participant a Non-Qualified Stock Option covering a
        specified number of Shares under Section 6 of the Plan (the “Option”).

      

      2. 
Grant
        Date. 
        The
        grant date of the Option will be determined by the Committee. 

      

      3. 
Exercise
        Price. 
        The
        exercise price of the Option is the closing price of a Share on the New York
        Stock Exchange on the grant date.

      

      4. 
Exercise
        Period. 
        Subject
        to the terms of the Plan, including Section A of this Appendix A, the Option
        (a)
        shall become exercisable with respect to one-third of the Shares on each
        of the
        first (“First
        Option Installment”),
        second (“Second
        Option Installment”)
        and
        third (“Third
        Option Installment”)
        anniversaries of the Emergence Date 1;
        and (b)
        shall be exercisable through and including the day immediately preceding
        the
        tenth anniversary of the Emergence Date (“Expiration
        Date”).

      

      5. 
Change
        in Exercisability and Exercise Period upon Termination of
        Employment.
        The
        exercisability of the Option and the exercise period set forth in Section
        A.4 of
        this Appendix A 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 any
        Participant employed by an Affiliate at the time the Company sells or otherwise
        divests itself of such Affiliate), the Option shall be exercisable in whole
        or
        in part during the period: (i) beginning on the date of such termination;
        and
        (ii) ending on the earlier of (A) the second anniversary of such termination
        or
        (B) the Expiration Date.

       

      
        
          

        

      

      1 The
        number of Shares subject to each Option Installment will be equal to the
        total
        number of Shares subject to the Option divided by three; provided,
        that
        if
        this formula results in any fractional Share allocation to any Option
        Installment, the number of Shares in the First Option Installment will be
        increased so that only full shares are covered by each Option Installment.
        For
        example, if an Option covers 1,000 Shares, 334 Shares will become exercisable
        with respect to the First Option Installment, and 333 Shares will become
        exercisable on each of the Second and Third Option Installments.

      

      

      
        
          
          

        

        
          A-1

          
            

          

        

        
          
          

        

      

      

      (b)     Voluntary
        Resignation. Upon
        a
        Participant’s Termination of Employment by reason of a voluntary resignation
        (other than for Good Reason or Retirement): (i) any portion of the Option
        that
        is not exercisable at the time of such termination shall be forfeited; and
        (ii)
        any portion of the Option that is exercisable at the time of such termination
        shall remain exercisable until the earlier of (A) 90 days after such termination
        or (B) the Expiration Date. 

       

      (c)     Retirement.
        Upon
        a
        Participant’s Termination of Employment by reason of Retirement, any portion of
        the Option that is not exercisable at the time of such termination shall
        be
        exercisable on a pro rata basis (“Pro
        Rata Option Portion”),
        and
        any portion of the Option that is exercisable at the time of such termination
        shall be exercisable, during the period: (i) beginning on the date of such
        termination; and (ii) ending on the earlier of (A) the third anniversary
        of such
        termination or (B) the Expiration Date. Upon a Participant’s Termination of
        Employment by reason of Retirement, any portion of the Option that is not
        exercisable at the time of such termination, other than the Pro Rata Option
        Portion, shall be immediately forfeited.

      

      Pro
        Rata
        Option Portion means, with respect to any Option Installment that is not
        exercisable at the time of a Participant’s Termination of Employment by reason
        of Retirement, the number of Shares covered by such Option Installment
        multiplied by a fraction (i) the numerator of which is the number of calendar
        months 2
        from the
        Emergence Date to the date of such termination, rounded up for any partial
        months and (ii) the denominator of which is twelve (12) for the First Option
        Installment, twenty-four (24) for the Second Option Installment and thirty-six
        (36) for the Third Option Installment.

       

      (d)      Death
        or
        Disability. Upon
        a
        Participant’s Termination of Employment due to death or Disability, the Option
        shall be exercisable in whole or in part during the period: (i) beginning
        on the
        date of such termination; and (ii) ending on the earlier of (A) the third
        anniversary of such termination or (B) the Expiration Date.

       

      
        
          
2
          For
          purposes of this provision, one
          calendar month is calculated from the date of measurement to the same or
          closest
          numerical date occurring during the following month. For example, if the
          Emergence Date is May 3, 2007, one calendar month will elapse as of June
          3,
          2007. If the Emergence Date is May 31, 2007, one calendar month will elapse
          as
          of June 30, 2007, since June only has 30 days. If the Emergence Date is
          January
          31, 2008, one calendar month will elapse as of February 29, 2008, since
          February
          2008 only has 29 days. Thereafter, each subsequent month continues to be
          counted
          based on the initial date of measurement of closest numerical date to such
          date
          of measurement occurring during the subsequent month. 

      

       

      
        
          
          

        

        
          A-2

          
            

          

        

        
          
          

        

      

      (e)      For
        Cause. Upon
        a
        Participant’s Termination of Employment by the Company for Cause, the Option
        shall be immediately forfeited.

       

      6.     Change
        in Control. Subject
        to Section D of this Appendix A, upon a Change in Control which occurs prior
        to
        a Participant’s Termination of Employment, the Option shall be exercisable in
        whole or in part during the period (i) beginning on the date of such Change
        in
        Control; and (ii) ending on the Expiration Date; provided,
        however,
        that
        the Option shall be immediately forfeited upon the Participant’s Termination of
        Employment by the Company for Cause; provided,
        further,
        that
        upon
        a Participant’s Termination of Employment for any reason other than by the
        Company for Cause, the period to exercise the Option will end on the earlier
        of
        (i) the third anniversary of such termination or (ii) the Expiration Date.
        

       

      B.     RESTRICTED
        STOCK

       

      1. 
Award
        Grant.
        The
        Company grants to the Participant a specified number of Shares of Restricted
        Stock under Section 8 of the Plan (the “Restricted
        Stock”).

      

      2. 
Grant
        Date. 
        The
        grant date of the Restricted Stock will be determined by the Committee.

      

      3. 
Restrictions. 
        Until
        the restrictions imposed by this Section B.3 (the “Restrictions”)
        have
        lapsed pursuant to Section 4, 5, 6 or 7 below, the 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 in Section 6 below. 

      

      4. 
Lapse
        of Restrictions--Passage of Time. 
        Subject
        to the terms of the Plan, including Section B of this Appendix A, the
        Restrictions shall lapse and be of no further force or effect with respect
        to
        one-third of the Shares of Restricted Stock six (6) months 3
        after
        the Emergence Date (“First
        RS Installment”),
        with
        respect to one-third of the Shares of Restricted Stock eighteen (18) months
        after the Emergence Date (“Second
        RS Installment”)
        and
        with respect to one-third of the Shares of Restricted Stock thirty (30) months
        after the Emergence Date (“Third
        RS Installment”).
        4

       

      
        
          
3
          For
          purposes of this provision, one
          calendar month is calculated from the date of measurement to the same or
          closest
          numerical date occurring during the following month. For example, if the
          Emergence Date is May 3, 2007, one calendar month will elapse as of June
          3,
          2007. If the Emergence Date is May 31, 2007, one calendar month will elapse
          as
          of June 30, 2007, since June only has 30 days. If the Emergence Date is
          January
          31, 2008, one calendar month will elapse as of February 29, 2008, since
          February
          2008 only has 29 days. Thereafter, each subsequent month continues to be
          counted
          based on the initial date of measurement or closest numerical date to such
          date
          of measurement occurring during the subsequent month. 

      

       

      
        
          
          

        

        
          A-3

          
            

          

        

        
          
          

        

      

      

      5.  Accelerated
        Lapse of Restrictions.
        If,
        at
        any time during the period commencing six (6) months after the Emergence
        Date
        and ending eighteen (18) months after the Emergence Date, the aggregate market
        value of all outstanding Shares is at least $14,000,000,000 for ten (10)
        consecutive trading days, as determined by the closing price of the Shares
        on
        the New York Stock Exchange, the Restrictions shall lapse and be of no further
        force or effect on the last day of such eighteen (18) month period, provided
        that the Participant has not had a Termination of Employment prior to such
        day.

       

      6. 
Lapse
        of Restrictions/Forfeiture upon Termination of Employment.
        In
        addition to the other provisions of the Plan and this Appendix A, the Restricted
        Stock and the Restrictions set forth in Section B of this Appendix 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 any
        Participant employed by an Affiliate at the time the Company sells or otherwise
        divests itself of such Affiliate), the Restrictions shall immediately lapse
        and
        be of no further force or effect as of the date of such
        termination.

      

      (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 forfeited as of the date of such
        termination. 

       

      (c) 
Retirement.
        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 a pro rata basis (“Pro
        Rata RS Portion”)
        as of
        the date of such termination. 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.

      

      Pro
        Rata
        RS Portion means, with respect to any RS Installment that is subject to the
        Restrictions at the time of a Participant’s Termination of Employment by reason
        of Retirement, the number of Shares covered by such RS Installment multiplied
        by
        a fraction (i) the numerator of which is the number of calendar months from
        the
        Emergence Date to the date of such termination, rounded up for any partial
        months and (ii) the denominator of which is six (6) for the First RS
        Installment, eighteen (18) for the Second RS Installment and thirty (30)
        for the
        Third RS Installment.

       

      
        (continued.
          . . )

      

       

      
        

      

      4 The
        number of Shares subject to each RS Installment will be equal to the total
        number of Shares subject to the Restricted Stock Award divided by three;
        provided,
        that
        if
        this formula results in any fractional Share allocation to any RS Installment,
        the number of Shares in the First RS Installment will be increased so that
        only
        full shares are covered by each RS Installment. For example, if the Restricted
        Stock Award includes 1,000 Shares, the Restrictions will lapse with respect
        to
        334 Shares on the First RS Installment, and the Restrictions will lapse with
        respect to 333 Shares on each of the Second and Third RS
        Installments.

       

      

      
        
          
          

        

        
          A-4

          
            

          

        

        
          
          

        

      

       

      (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.

      

      (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 forfeited as of
        the
        date of such termination. 

       

      7.  
            Change
        in Control. Subject
        to Section D of this Appendix A, upon a Change in Control which occurs prior
        to
        a Participant’s Termination of Employment, the Restrictions shall immediately
        lapse on the date of such Change in Control and be of no further force or
        effect
        as of such date. 

       

      8.     
         Dividends.
        In
        the
        event a cash dividend shall be paid in respect of Shares at a time the
        Restrictions on the Restricted Stock have not lapsed, the Participant shall
        receive the dividend in the same manner and to the same extent as if the
        Restrictions had lapsed at the time the dividend is paid. 

       

      C.     LONG-TERM
        PERFORMANCE AWARDS. 

       

      1.      
         Award
        Grant.
        The
        Company grants to the Participant a Performance Award for a specified target
        number of Shares under Section 9 of the Plan (the “Performance
        Award”).
          

      

      2.      
         Grant
        Date. 
        The
        grant date of the Performance Award will be determined by the Committee.
        

      

      3.     
         Payout
        Criteria.
        Except
        as otherwise expressly set forth in this Appendix A, the actual number of
        Shares
        paid, if any, to the Participant under the Performance Award will be based
        on
        (a) the Company’s EBITDAR performance and (b) the occurrence of a
        contemporaneous annual payout under the Company’s broad-based employee Profit
        Sharing Program (a “Profit
        Sharing Payout”),
        as
        described below.

      

      4.      
         Annual
        Vesting Opportunities for 2007 and 2008.  Subject
        to the terms of the Plan, including Section C of this Appendix A, Performance
        Awards will be subject to the following vesting opportunities in 2007 and
        2008.   

       

      (a)    Calendar
        Year 2007. If
        the
        Company (i) has achieved EBITDAR of at least $2,838,000,000 for the year
        ending
        December 31, 2007 and (ii) made a Profit Sharing Payout for 2007, a number
        of
        Shares equal to 15% of the Performance Award (rounded up to the nearest whole
        share) shall vest and be paid. 

       

      

      
        
          
          

        

        
          A-5

          
            

          

        

        
          
          

        

      

       

       
          (b)    Calendar
        Year 2008. If
        the
        Company (i) has achieved cumulative EBITDAR of at least $6,295,000,000 for
        the
        two year period ending December 31, 2008 and (ii) made a Profit Sharing Payout
        for 2008, a number of Shares equal to 15% of the Performance Award (rounded
        up
        to the nearest whole share) shall vest and be paid. 

       

      (c)    Condition
        Precedent. No
        Performance Awards will vest or be paid under this Section C.4 with respect
        to
        any year for which there is no Profit Sharing Payout. 

       

      (d)     Timing
        of Payment. The
        Company will pay Performance Awards that vest under this Section C.4 as soon
        as
        practicable after the determination that the payment criteria described in
        this
        Section have been met.

       

      5.     
         Vesting
        Opportunity for 2009; Payment of Vested Shares.
        Subject
        to the terms of the Plan, including Section C of this Appendix A, the
        Performance Award shall vest, as described in this Section 5, as of December
        31,
        2009, to the extent the Company meets or exceeds the EBITDAR goals described
        below. If the Company does not meet the Threshold Level, as defined below,
        any
        unpaid portion of the Performance Award will lapse and become void as of
        December 31, 2009. 

       

      (a)     Threshold
        Vesting. If
        the
        Company has achieved cumulative EBITDAR of $7,433,000,000 (“Threshold
        Level”) for
        the
        three year period ending December 31, 2009, the Performance Award will vest
        with
        respect to a number of Shares equal to (i) 50% of the Performance Award,
        (ii)
        minus the number of Shares, if any, paid to the Participant under Section
        C.4
        above. The remaining unvested portion of the Performance Award will lapse
        and
        become void. 

       

      (b)     Target
        Vesting. If
        the
        Company has achieved cumulative EBITDAR of $9,911,000,000 (“Target
        Level”) for
        the
        three year period ending December 31, 2009, the Performance Award will vest
        with
        respect to a number of Shares equal to (ii) 100% of the Performance Award,
        (ii)
        minus the number of Shares, if any, paid to the Participant under Section
        C.4
        above. 

       

      (c)     Maximum
        Vesting. If
        the
        Company has achieved cumulative EBITDAR of at least $11,849,000,000
        (“Maximum
        Level”) for
        the
        three year period ending December 31, 2009, the Performance Award will vest
        with
        respect to a number of Shares equal to (i) 150% of the Performance Award,
        (ii)
        minus the number of Shares, if any, paid to the Participant under Section
        C.4
        above. 

      
         

        
          
            
            

          

          
            A-6

            
              

            

          

          
            
            

          

           

        

      

      (d)    Vesting
        by Interpolation.
        If the
        Company has achieved cumulative EBITDAR for the three year period ending
        December 31, 2009 which is above the Threshold Level but below the Target
        Level,
        or above the Target Level but below the Maximum Level, the Performance Award
        will vest with respect to a number of Shares equal to (i) the Specified
        Percentage of the Performance Award, (ii) minus the number of Shares, if
        any,
        paid to the Participant under Section C.4 above. For purposes of this Section
        5(d), the “Specified
        Percentage”
will
        be
        determined by interpolating on a straight line basis as follows: (i) between
        Threshold Level (at which 50% of the Performance Award vests) and Target
        Level
        (at which 100% of the Performance Award vests) if the Company’s cumulative
        EBITDAR for the three year period ending December 31, 2009 is above the
        Threshold Level and below the Target Level; and (ii) between Target Level
        (at
        which 100% of the Performance Award vests) and Maximum Level (at which 150%
        of
        the Performance Award vests) if the Company’s cumulative EBITDAR for the three
        year period ending December 31, 2009 is above the Target Level and below
        the
        Maximum Level. 5

       

      (e)    Definition
        of EBITDAR. “EBITDAR”
means,
        with respect to any fiscal period of the Company, an amount equal to the
        consolidated operating income of the Company and its subsidiaries during
        such
        fiscal period, determined prior to the charges, costs, and expenses associated
        with depreciation, amortization, and aircraft rent, based on regularly prepared
        and publicly available statements of operations of the Company, prepared
        in
        accordance with generally accepted accounting principals (“GAAP”);
        provided,
        however,
        that
        EBITDAR shall be adjusted to exclude the following items, in each case as
        determined by the Committee, where applicable, in accordance with GAAP and
        only
        to the extent to which these items impact the Company’s consolidated operating
        income: (i) all asset write downs related to long term assets; (ii) gains
        or
        losses with respect to employee equity securities; (iii) gains or losses
        incurred as a consequence of “fresh start accounting”; and (iv) gains or losses
        with respect to extraordinary, one-time or non-recurring events.

       

      
        
          

        

      

      5
        The
        interpolation calculation is a four step process. The following is the
        calculation for a cumulative EBITDAR that is between Threshold Level and
        Target
        Level: 

       

      Step
        1:    Subtract
        the cumulative EBITDAR achieved from $9,911,000,000 (Target Level).

      Step
        2:    Divide
        the total in Step 1 by $2,478,000,000 (the difference between Target Level
        and
        Threshold Level). 

      Step
        3:   
        Multiply the result of Step 2 by 50% or 0.50 (the difference between 100%
        target
        vesting and 50% threshold vesting). Round up to the nearest thousandth; in
        other
        words, 0.456908 would be rounded up to 0.457

      Step
        4:   
        The fraction resulting from Step 3 is the percentage subtracted from the
        100%
        target vesting level to determine the actual percentage of the Participant’s
        Performance Award that will vest.

       

      For
        example, assume the target number of Shares of the Participant’s Performance
        Award is 1,000 Shares. If the Company achieves a cumulative EBITDAR of
        $8,672,000,000, the Performance Award will vest at 75% as follows:

       

      Step
        1:   $9,911,000,000 minus $8,672,000,000 =
        $1,239,000,000

      Step
        2:   $1,239,000,000 divided by $2,478,000,000 =
        0.50

      Step
        3:   0.50 multiplied by 0.50 = 0.25 or
        25%

      Step
        4:   Subtract
        25% from 100% for a total vesting percentage of 75%

       

      Therefore,
        in this example, 75% or 750 Shares (less any Shares already paid to the
        Participant under C.4) of the Participant’s Performance Award vest.

       

      
        
          
          

        

        
          A-7

          
            

          

        

        
          
          

        

      

       

      (f)     Condition
        Precedent. No
        Shares
        that vested under this Section C.5 will be paid to the Participant until
        there
        is a Profit Sharing Payout for 2009 or a subsequent year. 

       

      (g)    Timing
        of Payment. The
        Company will pay the Participant any Shares that vest under this Section
        C.5 as
        soon as practicable after the determination that the payment criteria described
        in this Section have been met. 

       

      6.     
         Accelerated
        Vesting/Forfeiture upon Termination of Employment.
        In
        addition to the other provisions of the Plan and this Appendix A, the
        Performance Award 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 any
        Participant employed by an Affiliate at the time the Company sells or otherwise
        divests itself of such Affiliate), the Participant will be entitled to any
        Shares that become payable under Section C.3 and/or Section C.4 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), the Participant will immediately
        forfeit any unpaid portion of the Performance Award as of the date of such
        termination. 

       

      (c)     Retirement.
        Upon
        a
        Participant’s Termination of Employment by reason of Retirement, the number of
        Shares subject to the Performance Award as of the date of such termination
        will
        be recalculated and will be the result of the following formula (the
“Adjusted
        Performance Award”):
        S ×
(T ÷ E) where, 

       

      S
        = the
        total number of Shares subject to the Participant’s Performance Award as of the
        grant date; 

       

      T
        = the
        number of calendar months 6
        from the
        Emergence Date to the date of such Termination of Employment (rounded up
        for any
        partial month); and 

       

      
        

      

      6
        For
        purposes of this provision, one
        calendar month is calculated from the date of measurement to the same or
        closest
        numerical date occurring during the following month. For example, if the
        Emergence Date is May 3, 2007, one calendar month will elapse as of June
        3,
        2007. If the Emergence Date is May 31, 2007, one calendar month will elapse
        as
        of June 30, 2007, since June only has 30 days. If the Emergence Date is January
        31, 2008, one calendar month will elapse as of February 29, 2008, since February
        2008 only has 29 days. Thereafter, each subsequent month continues to be
        counted
        based on the initial date of measurement or closest numerical date to such
        date
        of measurement occurring during the subsequent month. 

       

      
        
          
          

        

        
          A-8

          
            

          

        

        
          
          

        

      

       

      E
        = the
        number of calendar months from the Emergence Date to December 31, 2009 (rounded
        up for any partial month).

       

      Thereafter,
        the Participant will be entitled to any Shares that vest and become payable
        under Section C.4 and/or Section C.5 in the same manner and to the same extent
        as if the Participant’s employment had continued, except that the number of such
        Shares will be based on the Adjusted Performance Award. 

       

      (d)     Death
        or Disability. Upon
        a
        Participant’s Termination of Employment due to death or Disability, the number
        of Shares subject to the Performance Award as of the date of such termination
        will be recalculated in accordance with the formula set forth in Section
        C.6(c)
        above and the Shares subject to the Adjusted Performance Award will become
        immediately vested and will be paid 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
        as of the date of such termination. 

       

      7.   Change
        in Control. Subject
        to Section D of this Appendix A, upon a Change in Control, any Performance
        Award
        not previously forfeited under Section 6(b) or Section 6(e), or settled under
        Section 6(d), shall immediately vest and be paid to the Participant as soon
        as
        practicable without regard to whether a Profit Sharing Payout has been made.
        The
        number of Shares to be paid to the Participant in respect of the Performance
        Award shall be equal to 100% of the number of Shares subject to the Performance
        Award minus the number of Shares paid, if any, under Section C.4 above to
        the
        Participant.     

       

      D. 
Gross-Up
        for Certain Taxes.

       

      1.     
         Gross-Up
        Payments.
        In
        the
        event that the Participant becomes entitled to benefits under the Plan, the
        Company shall pay to the Participant an additional lump sum payment (the
        “Gross-Up
        Payment”),
        in
        cash, equal to the amounts, if any, described in sub-section (a), subject
        to
        sub-section (b), below:

      

      (a)   
        Subject to sub-section (b) below, if any portion of any payment under the
        Plan,
        when taken together with any payment under any other agreement with or plan
        of
        the Company (in the aggregate “Total
        Payments”)
        would
        be subject to the excise tax imposed by Section 4999 of the Code or any interest
        or penalties with respect to such excise tax (such excise tax, together with
        any
        such interest and penalties, are hereinafter collectively referred to as
        the
“Excise
        Tax”),
        then
        the Participant shall be entitled under this paragraph to an additional amount
        such that after payment by the Participant of all such Participant’s applicable
        federal, state and local taxes, including any Excise Tax, imposed upon such
        additional amount, the Participant will retain an amount sufficient to pay
        the
        Excise Tax imposed on the Total Payments.

       

      
        
          
          

        

        
          A-9

          
            

          

        

        
          
          

        

      

       

      (b)  
         Notwithstanding the provisions of sub-section (a) above, if it shall be
        determined that the Participant would be entitled to a Gross-Up Payment,
        but
        that the Total Payments would not be subject to the Excise Tax if the Total
        Payments were reduced by an amount that is less than 10% of the portion of
        the
        Total Payments that would be treated as “parachute payments” under Section 280G
        of the Code, then the amounts payable to the Participant shall be reduced
        (but
        not below zero) to the maximum amount that could be paid to Participant without
        giving rise to the Excise Tax (the “Safe
        Harbor Cap”),
        and
        no Gross-Up Payment shall be made to the Participant. Such reduction of the
        amounts payable to the Safe Harbor Cap, if applicable, shall be made by reducing
        payments comprising the Total Payments in such order as elected by the
        Participant.

      

      The
        amounts payable under this Section D.1 shall be paid by the Company as soon
        as
        practicable (but in no event more than 30 days) after the occurrence of the
        events giving rise to the Participant’s right to benefits under the
        Plan.

      

      2.     
         Determinations.
        In the
        event of a Change in Control, all determinations required to be made under
        Section D.1 above, including the amount of the Gross-Up Payment, whether
        a
        payment is required under Section D.1 above, and the assumptions to be used
        in
        determining the Gross-Up Payment, shall be made by the nationally recognized
        accounting firm generally used by the Company as its financial auditor (the
        “Accounting
        Firm”)
        which
        shall provide detailed supporting calculations both to the Company and the
        Participant within twenty business days of the receipt of notice from the
        Participant that there has been an event giving rise to the right to benefits
        under Section D.1 above, or such earlier time as is requested by the Company.
        In
        the event that the Accounting Firm is serving as accountant or auditor for
        a
        person effecting the Change in Control or is otherwise unavailable, the
        Participant may appoint another nationally recognized accounting firm to
        make
        the determinations required hereunder (which accounting firm shall then be
        referred to as the Accounting Firm hereunder). All fees and expenses of the
        Accounting Firm shall be borne solely by the Company.

      

      3.     
         Subsequent
        Redeterminations.
        Unless
        requested otherwise by the Company, the Participant must use reasonable efforts
        to contest in good faith any subsequent determination by the Internal Revenue
        Service that the Participant owes an amount of Excise Tax greater than the
        amount previously determined under paragraph (a); provided,
        however,
        that the
        Participant shall be entitled to reimbursement by the Company of all fees
        and
        expenses reasonably incurred by the Participant in contesting such
        determination. In the event the Internal Revenue Service or any court of
        competent jurisdiction determines that the Participant owes an amount of
        Excise
        Tax that is either greater or less than the amount previously taken into
        account
        and paid under Section D.1, the Company shall promptly pay to the Participant,
        or the Participant shall promptly repay to the Company, as the case may be,
        the
        amount of such excess or shortfall. In the case of any payment that the Company
        is required to make to the Participant pursuant to the preceding sentence
        (a
“Later
        Payment”),
        the
        Company shall also pay to the Participant an additional amount such that
        after
        payment by the Participant of all the Participant’s applicable federal, state
        and local taxes on such additional amount, the Participant will retain an
        amount
        sufficient to pay the total of the Participant’s applicable federal, state and
        local taxes arising due to the Later Payment. In the case of any repayment
        of
        Excise Tax that the Participant is required to make to the Company pursuant
        to
        the second sentence of this Section D.3, the Participant shall also repay
        to the
        Company the amount of any additional payment received by the Participant
        from
        the Company in respect of applicable federal, state and local taxes on such
        repaid Excise Tax, to the extent the Participant is entitled to a refund
        of (or
        has not yet paid) such federal, state or local taxes. 

       

      
        
          
          

        

        
          A-10Exhibit 10.2

    
      
        

      

    

    Exhibit
      10.2

    DELTA
      AIR LINES, INC.

    2007
      OFFICER AND DIRECTOR SEVERANCE PLAN

    

    INTRODUCTION

    

    Delta
      Air
      Lines, Inc. (the “Company”
or
      together with its Affiliates, “Delta”)
      has
      adopted this Officer and Director Severance Plan (the “Plan”)
      to
      provide benefits to certain eligible U.S.-payroll regular full-time Officer
      and
      Corporate Director level employees of the Company. Capitalized terms that are
      not otherwise defined within the text of this Plan are defined in Appendix
      A. As
      of the Effective Date, this Plan shall supersede the Company’s prior Director
      and Officer Severance Plan (the “Prior
      Plan”)
      in its
      entirety and, as of that date, the Prior Plan shall be void and of no further
      force or effect. Notwithstanding anything herein to the contrary, a Participant
      (as defined below) shall not be entitled to receive benefits under the Plan
      if
      the Participant has entered into an employment or other agreement with the
      Company or any Affiliate that provides benefits similar to the type of benefits
      provided by this Plan, which benefits have not been waived by the Participant
      or
      terminated by the Company.

    

    ELIGIBILITY
      CRITERIA

    

    
      	·      
              	
              Separation
                from Delta

            

    

     

    Any
      employee who is classified as (i) a Corporate Director (a “Director”)
      or
      Officer (an “Officer”)
      of the
      Company according to the Company’s Human Resources records,
      is
      eligible for benefits under this Plan (a “Participant”)
      in
      accordance with the terms described below. In addition, with respect to any
      Affiliate that does not offer a severance plan or program to its executive
      employees, any officer or director of such Affiliate may be designated by the
      Plan Administrator as a Participant in the Plan and any reference herein to
      a
      director or officer of the Company shall be deemed to also be a reference to
      a
      director or officer of equivalent level of such Affiliate who has been so
      designated. Notwithstanding anything in this Plan to the contrary, at his
      request, Gerald Grinstein, the Company’s current Chief Executive Officer, is not
      eligible to be a Participant in this Plan. 

    

    Subject
      to the terms of the Plan, a Participant shall receive the benefits described
      in
      Attachment B hereto if: (1) the Participant’s employment is terminated by Delta
      other than for Cause; or (2) the Participant (a) resigns from employment with
      Delta for Good Reason during the period beginning on a Change in Control Date
      and ending on the second anniversary thereof and (b) was employed by Delta
      as of
      the Change in Control Date. 

    

    
      	· 
                	
              Full
                Execution of Separation Agreement and General
                Release

            

    

     

    In
      order
      to receive the benefits of this Plan, eligible Participants must first sign
      a
      Separation Agreement and General Release prepared by Delta (the “Agreement”)
      within
      45 days of the date that the Agreement is presented to the Participant.
      Participants who fail to sign the Agreement within 45 days or who rescind the
      Agreement within the applicable Revocation Period are not eligible to receive
      the benefits of this Plan. The Agreement is designed to ensure that both Delta
      and the Participant have their rights and obligations established with certainty
      and finality. Delta is offering benefits under this Plan in exchange for the
      execution of the Agreement. The Agreement shall be in a form provided by and
      satisfactory to Delta and shall include, without limitation, a release in favor
      of Delta and its employees, directors and Affiliates and certain
      non-competition, non-solicitation and non-recruitment agreements for the benefit
      of Delta; provided,
      however,
      that
      for the two year period following a Change in Control Date, the Agreement shall
      be in substantially the same form as the form of Agreement used prior to the
      Change in Control Date.

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    PLAN
      ADMINISTRATION AND INTERPRETATION

    

    The
      “Plan
      Administrator”
is
      the
      Executive Vice President - Human Resources and Labor Relations of the Company
      (or any other Officer of the Company designated by the Personnel &
Compensation Committee of the Board). The “Plan
      Year”
is
      January 1 to December 31. Benefits from this Plan are paid from the general
      assets of Delta. 

    

    The
      Plan
      Administrator, or his delegate, has the full power and authority, in his sole
      discretion to construe, interpret and administer this Plan and his decisions
      shall be final and binding. The Plan Administrator shall have the broadest
      discretionary authority permitted under law in the exercise of all its functions
      including, but not limited to, deciding questions of eligibility, interpretation
      and the right to benefits hereunder.

    

    PLAN
      CLAIMS AND APPEALS 

    

    The
      terms
      applicable to claims and appeals are set forth at Appendix C. 

    

    AMENDMENT

    

    Except
      as
      expressly set forth herein, the Company may amend or terminate this Plan at
      any
      time; provided,
      however,
      that as
      of a Change in Control Date, no amendment to or termination of this Plan that
      is
      adverse to any person who is an employee of Delta on the Change in Control
      Date
      shall be effective until after the second anniversary of the Change in Control
      Date.

    

    SUCCESSORS
      AND ASSIGNS

    

    This
      Plan
      shall be binding upon Delta’s successors and assigns.

    

    GOVERNING
      LAW

    

    This
      Plan
      is governed by the Employee Retirement Income Security Act of 1974, as amended
      (“ERISA”),
      but
      it is intended to qualify as a plan maintained for the purpose of providing
      benefits to a select group of management or highly compensated employees. As
      such, it is exempt from certain provisions of ERISA pursuant to ERISA Sections
      201(2), 301(a)(3), 401(a)(1) and 4021(b) and applicable regulations (including
      Department of Labor Regulation 2520.104-23). However, some of the underlying
      benefits provided for under the terms of this Plan, such as travel privileges,
      financial planning and career transition services are not governed by ERISA,
      and
      their inclusion in this Plan does not deem them subject to ERISA. To the extent
      not superseded by ERISA, the
      Plan
      and all determinations made and actions taken thereunder shall be governed
      by
      the internal substantive laws of the State of Delaware and construed
      accordingly.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    SECTION
      409A OF THE INTERNAL REVENUE CODE

    

    To
      the
      extent required to be in compliance with Section 409A of the Internal Revenue
      Code of 1986, as amended, and the regulations promulgated thereunder (together,
      “Section
      409A”),
      notwithstanding any other provision of this Plan, any payment or benefit to
      which a Participant is eligible under this Plan, including a Participant who
      is
      a “specified employee” as defined in Section 409A, shall be adjusted or delayed
      in such manner as to comply with Section 409A and maintain the intent of this
      Plan to the maximum extent possible. For example, compliance with Section 409A
      could require a significant delay of payment or commencement of benefits beyond
      separation in certain circumstances.
      Notwithstanding the foregoing, Delta shall not have any liability to any
      Participant or any other person if any payment or benefit 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.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    APPENDIX
      A

     

    DEFINITIONS

    

    The
      following definitions shall apply for purposes of the Plan:

    

    “Affiliate”
means
      any entity that directly or indirectly controls or is controlled by or under
      common control with the Company.

    

    “Base
      Salary”
means
      the Participant’s monthly base salary at the time of separation, excluding
      expense reimbursements and supplemental salary payments, and any items not
      considered by the Plan Administrator to be a component of regular monthly base
      earnings; provided,
      however,
      that,
      as of a Change in Control Date, in the event of a termination of employment
      by
      the Participant because of a reduction in the Participant’s pay, “Base Salary”
means the Participant’s monthly base salary prior to the reduction in pay which
      gave rise to the Participant’s termination of employment.

    

    “Board”
means
      the Board of Directors of the Company.

    

    “Cause”
means
      the Participant’s 

    

    (i)
      continued, substantial failure to perform his duties with Delta (other than
      any
      such failure resulting from incapacity due to physical or mental illness) after
      a written demand for substantial performance is delivered to the Participant
      which identifies the manner in which Delta believes that the Participant has
      not
      performed his duties, or

    

    (ii)
      misconduct which is economically injurious to Delta, or

    

    (iii)
      conviction of, or plea of guilty or no contest to, a felony or any other crime
      involving moral turpitude, fraud, theft, embezzlement or dishonesty, or

    

    (iv)
      material violation of any material Delta policy or rule regarding conduct,
      which
      policy or rule has been communicated in writing to the Participant.

    

    A
      Participant shall have at least ten (10) business days to cure, if curable,
      any
      of the events (other than clause (iii)) which could lead to his termination
      of
      Cause. For any Participant who is an Executive Vice President or more senior
      executive of the Company, a termination for Cause must be approved by a 2/3
      vote
      of the entire Board. 

    

    “Change
      in Control”
means
      the occurrence after the Effective Date of any of the following: 

    

    (i)
      any
“person” (as defined in Section 13(d) of the Securities Exchange Act of 1934
      (“Act”))
      other
      than the Company, its Affiliates or an employee benefit plan or trust maintained
      by the Company or its Affiliates, becoming the “beneficial owner” (as defined in
      Rule 13d-3 under the Act), directly or indirectly, of more than 35% of the
      combined voting power of the Company’s then outstanding Voting Stock (excluding
      any “person” who becomes such a beneficial owner in connection with a
      transaction described in clause (A) of paragraph (iii) below), unless such
      person acquires beneficial ownership of more than 35% of the combined voting
      power of the Company’s Voting Stock then outstanding solely as a result of an
      acquisition of Company Voting Stock by the Company which, by reducing the
      Company Voting Stock outstanding, increases the proportionate Company Voting
      Stock beneficially owned by such person to more than 35% of the combined voting
      power of the Company’s Voting Stock then outstanding; provided,
      that if
      a person shall become the beneficial owner of more than 35% of the combined
      voting power of the Company’s Voting Stock then outstanding by reason of such
      Voting Stock acquisition by the Company and shall thereafter become the
      beneficial owner of any additional Company Voting Stock which causes the
      proportionate voting power of such Company Voting Stock beneficially owned
      by
      such person to increase to more than 35% of the combined voting power of such
      Voting Stock then outstanding, such person shall, upon becoming the beneficial
      owner of such additional Company Voting Stock, be deemed to have become the
      beneficial owner of more than 35% of the combined voting power of the Company’s
      Voting Stock then outstanding other than solely as a result of such Voting
      Stock
      acquisition by the Company;

    

    
      
        
        

      

      
        A-1

        
          

        

      

      
        
        

      

    

     

    (ii)
      at
      any time during a period of twelve consecutive months (but not including any
      period before the Effective Date) individuals who at the beginning of such
      period constituted the Board (and any new member of the Board, whose election
      by
      the Board or nomination for election by the Company’s shareowners was approved
      by a vote of at least two-thirds of the members of the Board then still in
      office who either were member of the Board at the beginning of the period or
      whose election or nomination for election was so approved), cease for any reason
      to constitute a majority of members then constituting the Board; or

    

    (iii)
      the
      consummation of (A) a reorganization, merger or consolidation of the Company
      or
      any direct or indirect subsidiary of the Company with any other corporation,
      other than a reorganization, merger or consolidation which results in the
      Company’s Voting Stock outstanding immediately prior to such merger or
      consolidation continuing to represent (either by remaining outstanding or being
      converted into Voting Stock of the surviving entity or any parent thereof)
      more
      than 65% of the voting power of the Voting Stock or the total fair market value
      of the securities of the Company or such surviving entity or any parent thereof
      outstanding immediately after such merger or consolidation, or (B) any sale,
      lease, exchange or other transfer (in one transaction or a series of
      transactions) of assets of the Company having a total gross fair market value
      equal to more than 40% of the total gross fair market value of all assets of
      the
      Company immediately prior to such transaction or transactions other than any
      such sale to an Affiliate.

    

    Notwithstanding
      the foregoing, in no event shall a Change in Control be deemed to have occurred
      with respect to a Participant if the Participant is part of a “group”, within
      the meaning of Section 13(d)(3) of the Act, which consummates the Change in
      Control transaction. In addition, for purposes of the definition of Change
      in
      Control, a person engaged in business as an underwriter of securities shall
      not
      be deemed to be the beneficial owner of, or to beneficially own, any securities
      acquired through such person’s participation in good faith in a firm commitment
      underwriting until the expiration of forty days after the date of such
      acquisition.

    

    “Change
      in Control Date” means
      the
      date on which a Change in Control occurs.

    

    “Change
      in Control Event” has
      the
      meaning set forth under the definition of Severance Pay below.

     

    
      
        
        

      

      
        A-2

        
          

        

      

      
        
        

      

    

     

    “Disability”
      means
      long-term or permanent disability as determined under the disability plan of
      the
      Company or Affiliate applicable to the Participant.

    

    “Effective
      Date”
means
      the effective date of the Debtors’ Joint Plan of Reorganization under Chapter 11
      of the Bankruptcy Code--Case No. 05-17923(ASH). 

    

    “Good
      Reason”
means
      with respect to any Participant who is employed by Delta on a Change in Control
      Date, any of the following that occurs without a Participant’s express written
      consent during the period beginning on the Change in Control Date and ending
      on
      the second anniversary thereof: 

     

      (i)      
      in
      the
      case of any Participant, a diminution or other reduction of such Participant’s
      authorities, duties or responsibilities, other than an insubstantial and
      inadvertent act that is promptly remedied by Delta after written notice by
      such
      Participant to the Chief Executive Officer of the Company;

     

    (ii)       
      the
      Participant’s office is relocated by more than 50 miles;

     

    (iii)  
a
      reduction of Participant’s
      Base Salary or incentive compensation opportunities, in either case other than
      pursuant to a uniform percentage salary reduction for all full-time domestic
      employees not subject to a collective bargaining agreement; 

     

    (iv)      
      the
      Company does not keep in effect compensation, retirement, health and welfare
      benefits, or perquisite programs under which the Participant receives benefits
      substantially similar, in the aggregate, to those in effect prior to a reduction
      (other than a reduction pursuant to an equivalent reduction in such benefits
      for
      all full-time domestic employees who are not subject to a collective bargaining
      agreement); or 

     

    (v) 
      a
      material breach by Delta of any binding obligation to the Participant relating
      to a material term of the Participant’s employment, including, but not limited
      to, indemnification or the terms of an award under the Delta Air Lines, Inc.
      2007 Performance Compensation Plan, or any failure of a successor to the Company
      to assume and agree to perform such obligation. 

     

    Notwithstanding
      the foregoing: (x) any grant of a long-term incentive award on or about the
      Effective Date under the Delta Air Lines, Inc. 2007 Performance Compensation
      Plan will be ignored for purposes of determining whether a Participant has
      suffered a reduction that constitutes Good Reason under subsection (iii) and
      (iv) above; (y) as to any Participant, an event described in subsections (i)
      through (v) above shall constitute Good Reason only if such Participant gives
      the Company written notice of intent to resign and the reasons therefore within
      ninety (90) days of the occurrence of such event, unless the Plan Administrator
      agrees otherwise; and (z) no event described in subsections (i) through (v)
      which is curable shall constitute Good Reason if such event is cured by Delta
      within ten (10) days of the Participant’s notice, given in accordance with (y)
      above. 

     

    “MIP
      Target Amount”
means
      as to any Participant, such Participant’s target award amount under the
      Company’s Management Incentive Plan (or any similar plan) in effect at the time
      such Participant has a termination of employment that entitles the Participant
      to benefits hereunder.

    

    “Protected
      Period”
      means
      the six month period immediately prior to a Change in Control Date. No period
      may be identified as a Protected Period until a Change in Control Date has
      occurred. 

    

    
      
        
        

      

      
        A-3

        
          

        

      

      
        
        

      

    

     

    “Revocation
      Period”
      means,
      as applicable, the seven (7) or twenty-one (21) calendar days immediately
      following the date a Participant signs an Agreement. 

    

    “Severance
      Event” has
      the
      meaning set forth under the definition of Severance Pay below.

    

    “Severance
      Pay”
means:
      

    

    (1)       with
      respect to any termination of employment: (a) by Delta without Cause either:
      (i)
      prior to a Change in Control (other than with respect to terminations of
      employment during the Protected Period); (ii) after a Change in Control with
      respect to any Participant who was not employed by Delta as of the Change in
      Control Date; or (iii) after the second anniversary of a Change in Control
      Date
      or (b) as a consequence of the Participant’s Disability (individually and
      collectively, a “Severance
      Event”),
      an
      amount equal to: 

    

    (a)    
      6
      months’
Base Salary for Directors, plus 50% of any applicable MIP Target Amount;

    

    (b)    
      9
      months’
Base Salary for Vice Presidents and Senior Vice Presidents, plus 75% of any
      applicable MIP Target Amount; or 

    

    (c)    
      12
      months’ Base Salary for Executive Vice Presidents and higher ranking Officers,
      plus 100% of any applicable MIP Target Amount; and 

    

    (2)     
      with
      respect to any termination of employment: (a) by Delta without Cause either
      (i)
      during the Protected Period or (ii) during the period between the Change in
      Control Date and the second anniversary thereof but only with respect to any
      Participant employed by Delta as of the Change in Control Date; or (b) due
      to
      any Participant’s resignation from employment for Good Reason between the Change
      in Control Date and the second anniversary thereof but only with respect to
      a
      Participant employed by Delta as of the Change in Control Date (individually
      and
      collectively, a “Change
      in Control Event”),
      an
      amount equal to: 

     

    (a)    
      6
      months’
Base Salary for Directors, plus 50% of any applicable MIP Target Amount;

    

    (b)    
      12
      months’ Base Salary for Vice Presidents and Senior Vice Presidents, plus 100% of
      any applicable MIP Target Amount; or

    

    (c)    
      24
      months’ Base Salary for Executive Vice Presidents and higher ranking Officers,
      plus 200% of any applicable MIP Target Amount. 

    

    
      
        
        

      

      
        A-4

        
          

        

      

      
        
        

      

    

    “Severance
      Period”
means:
      

    

    (1)          
      with
      respect to any Severance Event, the period beginning on the Participant’s
      employment termination date from Delta and ending: 

    

    (a)   
       6
      months
      after the termination date for Directors; 

    

    (b)     9
      months
      after the termination date for Vice Presidents and Senior Vice Presidents;
      or

    

    (c)    
      12
      months
      after the termination date for Executive Vice Presidents and higher ranking
      Officers; and 

    

    (2)           with
      respect to any Change in Control Event, the period beginning on the
      Participant’s employment termination date from Delta and ending: 

    

       
      (a)     6
      months
      after the termination date for Directors; 

    

       
      (b)     12
      months
      after the termination date for Vice Presidents or Senior Vice Presidents of
      the
      Company; or

    

       
      (c)     24
      months
      after the termination date for Executive Vice Presidents and higher ranking
      Officers.

    

    “Voting
      Stock”
means
      securities entitled to vote generally on the election of members of the board
      of
      directors.

     

    
      
        
        

      

      
        A-5

        
          

        

      

      
        
        

      

    

    APPENDIX
      B

    DESCRIPTION
      OF SPECIFIC BENEFITS1 

     

    SEVERANCE
      PAY

    

    
      	·      
                	
              This
                Plan provides for the payment of Severance Pay based on job level
                at the
                time of termination of employment; provided,
                however,
                that following a Change in Control, in the event of a Participant’s
                resignation for Good Reason because of a significant diminution of
                the
                Participant’s position, responsibilities or duties, Severance Pay shall be
                based on the Participant’s job level prior to the diminution which gave
                rise to the Participant’s
                resignation.

            

    

    
      	 	 

    

    
      	·      
                	
              Severance
                Pay is paid as a one-time lump-sum payment promptly following the
                Participant’s separation from employment and fulfillment of the other
                eligibility criteria. For purposes of any termination by Delta without
                Cause during the Protected Period, the Participant’s termination will
                change from a Severance Event to a Change in Control Event as of
                the
                Change in Control Date and such Participant’s Severance Pay and Severance
                Period will be adjusted accordingly as soon as practicable after
                the
                Change in Control Date.

            

    

    
      	 	 

    

    
      
        	·	
                All
                  applicable federal, state, and local taxes will be withheld from
                  all
                  Severance Payments that are made. Federal tax will be withheld
                  at a rate
                  consistent with applicable law.

              

      

    

    
      	 	 

    

    
      	·      
                	
              Severance
                Pay will not
                be
                considered as earnings under the Delta Retirement Plan, the Delta
                Family-Care Savings Plan, the Delta Family-Care Disability and
                Survivorship Plan, or any other qualified or non-qualified
                plans.

            

    

    
      	 	 

    

    
      
        	·	
                Severance
                  Pay will be provided by check and cannot be direct deposited to
                  any
                  financial institution.

              

      

    

    

    MEDICAL/DENTAL
      AND LIFE INSURANCE BENEFITS

    

    Payment
      of COBRA Premiums

    

    
      	·      
                	
              Employees
                who have a separation from employment are offered the right to continue
                applicable medical, dental, vision and Health Flexible Spending Account
                coverage in accordance with the Consolidated Omnibus Budget Reconciliation
                Act of 1985 (“COBRA”).
                Under this Plan, Delta will pay the premiums for medical, dental
                and/or
                vision COBRA coverage elected by a Participant or his eligible dependents
                for a period not to exceed the Severance Period, as further described
                below in this section. 

            

      	 	 

    

    
      	·      
               	
              Delta
                will not
                pay any portion of the COBRA premium required for the Healthcare
                Flexible
                Spending Account COBRA coverage that is elected by a Participant
                or his or
                her eligible dependents. The COBRA statute, COBRA regulations and
                COBRA
                provisions of the Delta Family-Care Medical Plan (or corresponding
                pilot
                or Affiliate plan, if applicable) will, in all cases, govern whether
                a
                Participant or his dependents are eligible for COBRA coverage and
                accordingly whether such Participant or dependent will receive any
                payment
                of COBRA premiums by Delta in accordance with this Plan.
                

            

      	 	 

    

    
      	·      
                	
              If
                the Participant and/or dependent fail to meet these requirements,
                such
                Participant and/or dependent will not
                be
                eligible for COBRA continuation coverage at either Delta’s expense or
                their own. Delta’s payment of the COBRA premiums under this Plan will
                expire on the earlier of: (i) the end of the Severance Period; or
                (ii) the
                date the Participant’s or the Participant’s dependents’ eligibility for
                COBRA coverage ceases as provided under COBRA and the terms of the
                Delta
                Family-Care Medical Plan (or corresponding pilot or Affiliate plan,
                applicable). 

            

    

     

    
      

    

    1It
      is intended that the benefits under this Plan be appropriately integrated with
      severance provided for under other arrangements, if any, covering the
      Participant to avoid duplication of severance pay.

    
       

      
        
          
          

        

        
          B-1

          
            

          

        

        
          
          

        

      

      
        
          
             

          

        

      

    

    Payment
      of Retiree Medical Premiums

    

    
      	·      
                	
              To
                the extent applicable, for those Participants who take special early,
                early or normal retirement at the time of their separation, and elect
                COBRA coverage, instead of retiree medical and/or dental coverage,
                the
                above section entitled “Payment of COBRA Premiums” will apply with respect
                to any Delta-paid COBRA premium. If the Participant instead elects
                retiree
                medical and/or dental coverage, Delta will, as an alternative to
                paying
                COBRA premiums as described above, pay the retiree medical and/or
                dental
                premium for the Participant and their eligible, properly enrolled
                dependents during the Severance Period. 

            

      	 	 

    

    
      	·      
               	
              In
                order to be eligible, the Participant must timely complete and return
                the
                separate retiree medical election form that is provided to employees
                at
                retirement. Failure to meet this requirement will result in no retiree
                medical coverage and therefore no payment of the retiree medical
                premium
                by Delta. 

            

      	 	 

    

    
      	·      
                	
              If
                a Participant or his dependents become ineligible for Delta retiree
                coverage for any reason or opt out of such coverage, all coverage
                will
                cease and Delta will have no responsibility to pay any further retiree
                medical and/or dental premiums under this Plan.

            

    

     

    BASIC
      LIFE INSURANCE

    

    
      	·      
                	
              To
                the extent applicable, Participants will also have their basic life
                insurance coverage under the Delta Family-Care Disability and Survivorship
                Plan (or corresponding pilot or Affiliate plan, if applicable) continued
                for the Severance Period at Delta’s expense. The amount of coverage
                continued will be equal to the amount of basic life insurance coverage
                in
                effect immediately prior to separation up to a maximum of $50,000.
                

            

      	 	 

    

    
      	·      
                	
              If
                a Participant instead shall have reached early retirement age at
                the time
                of his or her separation, he or she will not be eligible for this
                continuation of basic life coverage but instead will receive the
                standard
                retiree basic life coverage (currently $10,000 at the Company).
                

            

    

     

    TRAVEL
      PRIVILEGES

    

    
      	·      
               	
              During
                the Severance Period, a Participant will be eligible for continued
                travel
                privileges comparable to Delta’s travel policy as in effect for similarly
                situated active employees during such
                period.

            

      	 	 

    

    
      	·      
                	
              Family
                status changes (marriage, divorce, adoption or birth of child) that
                occur
                during the Severance Period must be reported to the Employee Service
                Center (or corresponding Affiliate administrator) within 30 days
                of the
                status change. Failure to do so will result in the ineligibility
                of the
                new family member for travel privileges described under this Plan.
                

            

      	 	 

    

    
      	·      
                	
              All
                travel privileges shall be governed by all applicable rules and procedures
                which are generally applicable at the time the travel privileges
                are used,
                except as expressly modified in this Plan. Travel privileges may
                be used
                for pleasure, vacation, or personal emergency, but may not be used
                for any
                type of business or professional activity. Any violation of the rules
                governing non-revenue and reduced rate travel may result in the suspension
                or termination of all travel privileges.

            

    

     

    
      
        
        

      

      
        B-2

        
          

        

      

      
        
        

      

    

     

    
      	·      
                	
              With
                respect to any Participant who (i) incurs a termination that constitutes
                a
                Change in Control Event, (ii) is a Vice President of the Company
                or more
                senior Officer at the time of the Change in Control Event and (iii)
                with
                respect to any Participant who becomes employed by Delta after the
                Effective Date only, has at least two (2) years of service with Delta
                at
                the time of such termination, such Participant will be treated as
                a
                retiree for purposes of the Company’s travel policy regardless of the
                Participant’s actual age or years of service and the Participant’s travel
                benefits will be based on the Company travel policy in effect immediately
                prior to the Change in Control Event that was applicable to the
                Participant. 

            

    

    

    CAREER
      TRANSITION SERVICES

    

    
      	·      
              	
              Participants
                are eligible to receive career transition services valued at up to
                $5,000
                at a career transition services firm chosen by
                Delta.

            

      	 	 

    

    
      	·      
               	
              These
                career transition services may include seminars, job search work
                teams,
                productivity clinic, resumé preparation, assessments, resource library,
                on-line database, job lead development, individual counseling,
                administrative support, computer lab, and workspace
                phone/fax.

            

      	 	 

    

    
      	·      	
              The
                eligibility to receive these services will expire upon the employee
                becoming employed or the expiration of the Severance Period, whichever
                occurs first.

            

    

    

    FINANCIAL
      PLANNING SERVICES

    

    
      	·      	
              Participants
                are eligible for continuation of the financial planning services
                for which
                they are eligible at the time of their separation from
                Delta.

            

      	 	 

    

    
      	·      
                	
              The
                eligibility to receive these services will expire at the conclusion
                of the
                calendar year in which the Participant separates from Delta, even
                if that
                occurs during the Severance Period.

            

    

    

    GROSS-UP
      PAYMENT

    

    
      	·      
               	
               (a)
                Gross-Up
                Payments. In
                the event that a Participant becomes entitled to benefits under this
                Appendix B, Delta shall pay to such Participant an additional lump
                sum
                payment (the “Gross-Up
                Payment”),
                in cash, equal to the amounts, if any, described in sub-paragraph
                (x),
                subject to sub-paragraph (y),
                below:

            

    

    

    (x)
      Subject to sub-paragraph (y) below, if any portion of any payment under this
      Appendix B, when taken together with any payment under any other agreement
      with
      or plan of Delta (in the aggregate “Total
      Payments”)
      would
      be subject to the excise tax imposed by Section 4999 of the Internal Revenue
      Code of 1986, as amended (the “Code”)
      or any
      interest or penalties with respect to such excise tax (such excise tax, together
      with any such interest and penalties, are hereinafter collectively referred
      to
      as the “Excise
      Tax”),
      then
      the Participant shall be entitled under this paragraph to an additional amount
      such that after payment by the Participant of all such Participant’s applicable
      federal, state and local taxes, including any Excise Tax, imposed upon such
      additional amount, the Participant will retain an amount sufficient to pay
      the
      Excise Tax imposed on the Total Payments.

     

    
      
        
        

      

      
        B-3

        
          

        

      

      
        
        

      

    

     

    (y)
      Notwithstanding the provisions of sub-paragraph (x) above, if it shall be
      determined that the Participant would be entitled to a Gross-Up Payment, but
      that the Total Payments would not be subject to the Excise Tax if the Total
      Payments were reduced by an amount that is less than 10% of the portion of
      the
      Total Payments that would be treated as “parachute payments” under Section 280G
      of the Code, then the amounts payable to the Participant shall be reduced (but
      not below zero) to the maximum amount that could be paid to Participant without
      giving rise to the Excise Tax (the “Safe
      Harbor Cap”),
      and
      no Gross-Up Payment shall be made to the Participant. Such reduction of the
      amounts payable to the Safe Harbor Cap, if applicable, shall be made by reducing
      payments comprising the Total Payments in such order as elected by the
      Participant.

    

    
      	·      
               	
              The
                amounts payable under this paragraph (a) shall be paid by Delta as
                soon as
                practicable (but in no event more than 30 days) after the occurrence
                of
                the events giving rise to the Participant’s right to benefits under
                Appendix B.

            

    

    

    
      	·      
               	
              (b)
                Determinations.
                In
                the event of a Change in Control, all determinations required to
                be made
                under paragraph (a) above, including the amount of the Gross-Up Payment,
                whether a payment is required under paragraph (a) above, and the
                assumptions to be used in determining the Gross-Up Payment, shall
                be made
                by the nationally recognized accounting firm generally used by the
                Company
                as its financial auditor (the “Accounting
                Firm”)
                which shall provide detailed supporting calculations both to Delta
                and the
                Participant within twenty business days of the receipt of notice
                from the
                Participant that there has been an event giving rise to the right
                to
                benefits under paragraph (a) above, or such earlier time as is requested
                by Delta. In the event that the Accounting Firm is serving as accountant
                or auditor for a person effecting the Change in Control or is otherwise
                unavailable, the Participant may appoint another nationally recognized
                accounting firm to make the determinations required hereunder (which
                accounting firm shall then be referred to as the Accounting Firm
                hereunder). All fees and expenses of the Accounting Firm shall be
                borne
                solely by Delta.

            

    

    

    
      	·      
                	
              (c)
                Subsequent
                Redeterminations.
                Unless requested otherwise by the Company, each Participant must
                use
                reasonable efforts to contest in good faith any subsequent determination
                by the Internal Revenue Service that such Participant owes an amount
                of
                Excise Tax greater than the amount previously determined under paragraph
                (a); provided,
                however,
                that Participants shall be entitled to reimbursement by Delta of
                all fees
                and expenses reasonably incurred by the Participant in contesting
                such
                determination. In the event the Internal Revenue Service or any court
                of
                competent jurisdiction determines that the Participant owes an amount
                of
                Excise Tax that is either greater or less than the amount previously
                taken
                into account and paid under paragraph (a), Delta shall promptly pay
                to
                such Participant, or the Participant shall promptly repay to Delta,
                as the
                case may be, the amount of such excess or shortfall. In the case
                of any
                payment that Delta is required to make to the Participant pursuant
                to the
                preceding sentence (a “Later
                Payment”),
                Delta shall also pay to the Participant an additional amount such
                that
                after payment by the Participant of all such Participant’s applicable
                federal, state and local taxes on such additional amount, the Participant
                will retain an amount sufficient to pay the total of such Participant’s
                applicable federal, state and local taxes arising due to the Later
                Payment. In the case of any repayment of Excise Tax that a Participant
                is
                required to make to Delta pursuant to the second sentence of this
                paragraph (c), the Participant shall also repay to Delta the amount
                of any
                additional payment received by such Participant from Delta in respect
                of
                applicable federal, state and local taxes on such repaid Excise Tax,
                to
                the extent the Participant is entitled to a refund of (or has not
                yet
                paid) such federal, state or local
                taxes.

            

    

    

    
      
        
        

      

      
        B-4

        
          

        

      

      
        
        

      

    

    APPENDIX
      C

     

    PLAN
      CLAIMS AND APPEALS 

    

    FILING
      A CLAIM

    

    All
      claims for benefits under this Plan must be submitted in writing to the Vice
      President - Compensation and Benefits of the Company (or such other officer
      as
      may be designated by the Company). If
      a
      claim is denied, the claimant will receive written notification of the denial
      within 90 days after the claim is properly and completely filed. Special
      circumstances may require an additional period of no more than 90 days. In
      that
      event, the claimant will receive a written notice of the special circumstances
      requiring the extension and the date when the claimant may expect a decision
      on
      the claim. If the claimant is not furnished with written notification of the
      decision on the claim within 90 days (or within 180 days if an extension is
      necessary) after the claim is properly and completely filed, the claimant or
      his/her authorized representative may request a review of the claim under the
      appeal procedures described below.

    

    APPEAL
      PROCEDURES FOR DENIED CLAIMS

    

    If
      a
      claimant is dissatisfied with a denial of a claim under the Plan, the claimant
      has the right to appeal the denial. All appeals must be addressed to the proper
      party in a timely manner. All
      appeal time deadlines will be strictly enforced.

    

    If
      a
      claimant desires a review of a denial, he/she or his/her representative
      designated in writing must submit a written request that is received by the
      Plan
      Administrator within 90 days of the date of this Plan’s letter denying benefits.
      The date of the denial indicated on the denial letter counts as day one in
      determining this 90-day period and the Plan Administrator expressly reserves
      the
      right to refuse to consider tardy appeals. 

    

    The
      claimant will be notified in writing of the decision on review within 60 days
      after the Plan Administrator receives the review request. If the claim denial
      is
      upheld, the claimant will be so advised and informed of the reason, the
      provisions of the Plan document upon which the denial was based, and, if
      applicable, an explanation of other relevant material or information necessary
      to perfect the claim. The Plan Administrator may take an additional 60 days
      to
      inform a claimant of a decision if special circumstances require an extension
      of
      processing time and the Plan Administrator has notified the claimant in writing
      that there will be a delay, the reasons for needing more time, and the date
      by
      which the final decision will be made.

    

    Review
      by
      the Plan Administrator is made only upon the written record. The claimant or
      a
      representative designated by the claimant in writing may review pertinent
      documents relating to the denial and may submit comments, a statement of issues,
      and/or additional documentary evidence if desired. Personal appearances are
      not
      permitted.

    

    A
      claimant must timely exhaust the administrative remedies allowed under this
      Plan
      as described above before filing any legal action on a claim. The previously
      described procedure is the exclusive administrative claims procedure provided
      under this Plan.

    

    
      
        
        

      

      
        C-1

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