Document:

Exhibit

EXHIBIT 10.18

DELTA AIR LINES, INC.
2019 MANAGEMENT INCENTIVE PLAN 

1.    Purpose.  The 2019 Management Incentive Plan (the “MIP”) is an annual incentive program sponsored by Delta Air Lines, Inc. (“Delta” or the “Company”) that is intended to closely:  (a) link pay and performance by providing management employees with a compensation opportunity based on Delta achieving key business plan goals in 2019 and (b) align the interests of management employees with the Company’s other employees and stakeholders.  
The MIP is being adopted under, and is subject to the terms of, the Delta Air Lines, Inc. Performance Compensation Plan (the “Performance Compensation Plan”).  
Capitalized terms that are used but not defined in the MIP shall have the meaning ascribed to them in the Performance Compensation Plan.  
2.    Plan Administration.  (a)  The Personnel & Compensation Committee of the Board of Directors (the “Committee”) shall be responsible for the general administration and interpretation of the MIP and for carrying out its provisions. The Committee shall have such powers as may be necessary to discharge its duties hereunder, including, without limitation, the following powers and duties, but subject to the terms of the MIP:
(i)     authority to construe and interpret the terms of the MIP and to determine eligibility, awards and the amount, manner and time of payment of any awards hereunder;
(ii)     authority to prescribe forms and procedures for purposes of MIP participation and distribution of awards; 
(iii)     authority to adopt rules and regulations and to take such actions as it deems necessary or desirable for the proper administration of the MIP, which authority may be delegated to the Company’s Chief Human Resources Officer; and
(iv)    authority at any time prior to a Change in Control to eliminate or reduce the actual payout to any Participant in the MIP. 
(b)     Any rule or decision by the Committee (or its delegate) that is not inconsistent with the provisions of the MIP shall be conclusive and binding on all persons and shall be given the maximum deference permitted by law.
(c)    Notwithstanding any provision of the 2019 MIP or the Performance Compensation Plan to the contrary, the minimum amount of total MIP Awards payable to eligible Participants (the “Minimum Amount”) may be fixed by the Committee (or its delegate) on or prior to December 31, 2019, but in no event earlier than December 1, 2019.  Once so determined by the Committee (or its delegate), the Minimum Amount shall not be further reduced or eliminated at any time thereafter.  Any portion of the Minimum Amount allocated to such Participants that may be forfeited pursuant to the terms of the 2019 MIP shall be reallocated among the other eligible Participants.
3.    Eligibility.  All Delta employees worldwide who are officers, managing directors (grade 13), directors (grade 12), general managers (grade 11), grade 10 or grade 8 (other than employees 

1
                    

    

who participate in a sales incentive plan or other major functional incentive plan, as may be in effect from time to time) are eligible to participate in the MIP (“Participants”).  
4.    MIP Awards.  
 
    (a)    General.  The MIP award (the “MIP Award”) each Participant receives, if any, will be based on:  (i) the Participant’s Target MIP Award, as defined below; (ii) the level of achievement within each applicable performance measure; and (iii) the occurrence of a payout for 2019 under the Company’s broad-based employee profit sharing program (the “Profit Sharing Program”), as described below.  Certain additional requirements will apply to any Participant who is employed by the Company as an executive vice president or more senior officer of the Company (“Executive Officer Participant”), as discussed in Section 7(b).

(b)        Performance Measures.  The performance measures used will be one or more of financial, operational (“Operational Performance”), leadership effectiveness (“Leadership Effectiveness Performance”) and individual performance (“Individual Performance”).  Financial performance will be comprised of two separate measures, one based solely on the Company’s performance (“Absolute Financial Performance”) and the other based on the Company’s performance relative to a comparator group (“Relative Financial Performance”). Achievement under each performance measure may range from below threshold, at which there is no payout, to the maximum performance level, at which the payout will be greater than the target level, subject to Section 4(c).    

(c)    Interaction with Profit Sharing Program and Individual Performance Measure.  If there is no payout under the Profit Sharing Program for 2019, (i) no amount will be paid with respect to Absolute Financial Performance to any Participant regardless of whether Delta meets or exceeds that performance measure and (ii) for general manager level (grade 11) Participants and above, the actual MIP Award, if any, will not exceed such Participant’s Target MIP Award (as defined below).   In addition, if a Participant’s performance under the Individual Performance Measure (applicable to Participants who are not officers) is not satisfactory, no amount will be paid with respect to Absolute Financial Performance, Relative Financial Performance and/or Operational Performance to such Participant regardless of whether Delta meets or exceeds those performance measures.  
 
     (d)    Target MIP Awards.  The Target MIP Award for each Participant will be expressed as a percentage of the Participant’s Base Salary (the “Target MIP Award”) as determined by the Committee and will be communicated to Participants in such manner as the Committee deems appropriate.  Base Salary” means the actual base salary earned by a Participant during 2019.  
   
5.    Weighting of Performance Measures.  Subject to Section 8, a percentage of each Participant’s Target MIP Award is allocated to one or more of Absolute Financial Performance, Relative Financial Performance, Operational Performance, Leadership Effectiveness Performance and/or Individual Performance based on the Participant’s employment level, as follows: 

2
                    

    

	
						
	Performance Measures and Weightings

	Employment
Level

	 
% of Target  
MIP Award allocated to
Absolute Financial
Performance

	% of Target  
MIP Award  
allocated to
Relative Financial
Performance

	% of Target  
MIP Award allocated to Operational Performance

	 
% of Target  
MIP Award  
allocated to
Leadership Effectiveness
Performance

	 
% of Target  
MIP Award allocated to
Individual
Performance

	CEO
	50%
	25%
	25%
	0%
	0%

	President/SEVP
	50%
	25%
	25%
	0%
	0%

	EVP
	50%
	25%
	25%
	0%
	0%

	SVP –Fleet & Technical Procurement
	50%
	25%
	25%
	0%
	0%

	SVP
	50%
	15%
	25%
	10%
	0%

	VP
	50%
	15%
	25%
	10%
	0%

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

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

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

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

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

6.    The Performance Measures—Threshold, Target and Maximum Payout Levels.  The Target MIP Award and the amounts paid in connection with target levels of Absolute Financial, Relative Financial, Operational, Leadership Effectiveness and Individual Performances, are based on the achievement of the target performance level with respect to each applicable performance measure (except that Absolute Financial Performance also requires a payout under the Profit Sharing Program for 2019).  A Participant’s actual MIP Award may be greater or less than the target amount based on whether performance under one or more of the performance measures applicable to the Participant exceeds or is below target performance, subject to Section 4(c).  This is explained in more detail below.  
(a)    Absolute Financial Performance Measure.  The Absolute Financial Performance measure for 2019 is based on Delta’s Pre-Tax Income (as defined below).  The following table describes the performance ranges and award payout levels for 2019 Absolute Financial Performance, subject to Section 4(c):

	
				
	 
	

Threshold

	

Target

	

Maximum

	% of Target Absolute Financial Performance Measure Paid
	

50%
	

100%
	

200%

	Required 2019 Pre-Tax Income
	$6,521 Million
	$7,683 Million
	$8,423 Million

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

3
                    

    

     “Pre-Tax Income” will be the amount of Pre-Tax Income, if any, determined under the Profit Sharing Program for 2019.1 
 
    (b)    Relative Financial Performance Measure.  The Relative Financial Performance measure will be measured based on the comparison of Delta’s Annual Pre-Tax Income Margin for the 2019 calendar year relative to the Composite Performance of the members of the Industry Composite Group for the 2019 calendar year (as such capitalized terms are defined below).  The following table describes the performance ranges and payout levels for 2019 Relative Financial Performance, subject to Section 4(c):

	
				
	 
	

Threshold

	

Target

	

Maximum

	% of Target Relative Financial Performance Measure Paid
	

50%
	

100%
	

200%

	

Delta’s 2019 Annual Pre-Tax Income Margin relative to Composite Performance of Industry Composite Group for the same period 
	

Composite Performance

	+3.0 points above Composite Performance
	+4.0 points above Composite Performance

Payouts based on Relative Financial Performance will be straight-line interpolated when actual performance results fall above Threshold and below Target or above Target and below Maximum.

“Annual Pre-Tax Income Margin” for Delta and each member of the Industry Composite Group shall be calculated by using the subject company’s Pre-Tax Income and Total Operating Revenue for the 2019 calendar year and the following formula:  (A÷B), where:

A = Pre-Tax Income for 2019; and 

B = Total Operating Revenue for 2019.

“Composite Performance” means, for purposes of determining the total Annual Pre-Tax Income Margin for the Industry Composite Group, the result obtained by treating the members of the Industry Composite Group as if they were one combined entity. 

“Industry Composite Group” means Alaska Air Group, Inc., American Airlines Group, Inc., JetBlue Airways Corporation, Southwest Airlines, Co., and United Continental Holdings, Inc.

                                                     
1 The Profit Sharing Program for 2019 defines “Pre-Tax Income” as follows:  for any calendar year, the Company’s consolidated pre-tax income calculated in accordance with Generally Accepted Accounting Principles in the United States (“GAAP”) and as reported in the Company’s public securities filings, but excluding:  (a) all asset write downs related to long term assets; (b) gains or losses with respect to employee equity securities; (c) gains or losses with respect to extraordinary, one-time or nonrecurring items; and (c) expense accrued with respect to the Profit Sharing Program.

4
                    

    

“Pre-Tax Income” means the subject company’s consolidated pre-tax income based on its regularly prepared and publicly available statements of operations prepared in accordance with GAAP, but excluding mark-to-market adjustments.

“Total Operating Revenue” means the subject company’s total operating revenue based on its regularly prepared and publicly available statements of operations prepared in accordance with GAAP; provided, with respect to Delta, Total Operating Revenue shall exclude the portion of revenue associated with refinery sales to third parties net of exchange. 

In determining the Annual Pre-Tax Income Margin for Delta and each member of the Industry Composite Group, the Committee shall make such adjustments with respect to any subject company as is necessary to ensure the results are comparable, including, without limitation, differences or changes in accounting policies, standards, practices, guidelines, reclassifications or restatements (for example, fuel hedging, purchase accounting adjustments associated with mergers, acquisitions or divestures, or fresh start accounting as a result of emergence from bankruptcy).  Without limiting the generality of the foregoing, the Committee shall (i) make such determinations based on financial data filed by the subject company with the U.S. Securities and Exchange Commission or otherwise and (ii) exclude from any calculation any item of gain, loss or expense determined to be special or unusual in nature or infrequent in occurrence.

A company shall be automatically removed from the Industry Composite Group in the event that any of the following occur during or with respect to the 2019 calendar year:  (i) such company ceases to maintain or does not timely prepare publicly available statements of operations prepared in accordance with GAAP; (ii) such company is not the surviving entity in any merger, consolidation or other non-bankruptcy reorganization (or survives only as a subsidiary of an entity other than a previously wholly-owned subsidiary of such company); (iii) such company sells, leases or exchanges all or substantially all of its assets to any other person or entity (other than a previously wholly owned subsidiary of such company); (iv) such company is dissolved and liquidated; or (v) more than 20% of such company's revenues (determined on a consolidated basis based on the regularly prepared and publicly available statements of operations of such company prepared in accordance with GAAP) for any fiscal year of such company are attributable to the operation of businesses other than such company's airline business and such company does not provide publicly available statements of operations with respect to its airline business that are separate from the statements of operations provided with respect to its other businesses. 

To the extent reasonably practicable, in the event of a merger, consolidation or similar transaction during the 2019 calendar year between Delta and any other airline, including a member of the Industry Composite Group, or between any member of the Industry Composite Group and any other airline, including another member of the Industry Composite Group (an “Airline Merger”), Annual Pre-Tax Income Margin for any such company involved in an Airline Merger will be calculated on a combined basis as if the Airline Merger had occurred on January 1, 2019, removing the effects of purchase accounting-related adjustments.  Furthermore, to the extent reasonably practicable, in the event of an acquisition or divestiture or similar transaction during 2019 calendar year between Delta and any regional carrier or between any member of the Industry Composite Group and any regional carrier (a “Regional Carrier Transaction”), Annual Pre-Tax Income Margin for any such company involved in a Regional Carrier Transaction will be calculated to remove the impact of any reclassifications of costs from (or to) such 

5
                    

    

company’s presentation of contract carrier expense to (or from) the other expense line items on the statement of operations (determined based on the regularly prepared and publicly available statements of operations of such company prepared in accordance with GAAP).

(c)    Operational Performance Measures.  The Operational Performance measures for 2019 are based on both Delta and Delta Connection operational performance, with (i) Delta’s operational performance accounting for 75% of the measure and (ii) Delta Connection performance accounting for 25% of the measure.  Delta’s Operational Performance is based on the number of times during 2019 that Delta meets or exceeds its monthly goals under the broad-based employee shared rewards program (the “Shared Rewards Program”).  Delta Connection’s Operational Performance is based on the number of times during 2019 that the Delta Connection carriers meet or exceed their monthly operational goals for (x) completion factor and (y) on-time arrival performance (the “Delta Connection Goals”).  The Delta Connection Goals and the methodology for determining whether these goals are met are described in Exhibit A hereto.  The following table describes the performance ranges and award payout levels for 2019 Operational Performance, subject to Section 4(c):

	
				
	 
	Threshold
	Target
	Maximum

	Shared Rewards Program
	 
	 
	 

	% of Target Payout for this Performance Measure (75% Weighting)
	37.50%
	75%
	150%

	Number of monthly Shared Rewards Program goals actually met during 2019
	21
	28
	35 or more

	Delta Connection Goals
	 
	 
	 

	% of Target Payout for this Performance Measure (25% Weighting)
	12.50%
	25%
	50%

	Number of Delta Connection Goals actually met during 2019
	9
	14
	19 or more

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

(d)    Leadership Effectiveness Performance Measure.  The Leadership Effectiveness Performance measure (generally applicable to Participants who are vice presidents or senior vice presidents) for 2019 will be based on an evaluation of whether a Participant has demonstrated leadership attributes and results during 2019, including, among other things, supporting diversity, providing talent management, meeting financial and headcount budget, improving employee engagement and being a role model for the Rules of the Road.  The performance ranges and award payout levels will be determined by the Committee, subject to Section 4(c).  
 
(e)    Individual Performance Measure.  The Individual Performance measure (applicable to Participants who are not officers) is generally determined by each Participant’s performance evaluation at the end of 2019.  The performance ranges and award payout levels will be determined by the Committee, subject to Section 4(c).  

6
                    

    

7.    Timing of Award Payments.  

(a)    In General.  Subject to Sections 7(b) and 8(a), any payouts to a Participant under the MIP for 2019 will be made in cash as soon as practicable after (i) the Committee certifies the achievement of the required Absolute Financial Performance, Relative Financial Performance and Operational Performance results and (ii) where applicable, Leadership Effectiveness Performance results have been determined and individual performance has been evaluated, but in no event later than March 15, 2020, unless it is administratively impracticable to do so, and such impracticability was unforeseeable at the end of 2019, in which case such payment shall be made as soon as administratively practicable after March 15, 2020.  Further, unless a payout for 2019 under the Profit Sharing Program occurs after March 15, 2020, any payout under the 2019 MIP will not be made prior to a payout for 2019 under the Profit Sharing Program; provided, however, if it is determined there will be no payout for 2019 under the Profit Sharing Program, any MIP Awards that are payable based on Relative Financial Performance, Operational Performance, Leadership Effectiveness Performance or Individual Performance will be paid as soon as practicable thereafter, but in no event later than March 15, 2020, unless it is administratively impracticable to do so, and such impracticability was unforeseeable at the end of 2019, in which case such payment shall be made as soon as administratively practicable after March 15, 2020. 

(b)    Executive Officer Participants.  Payouts under the MIP to Participants who, as of December 31, 2019, are Executive Officer Participants will be subject to the following terms and conditions: 

(i)    Payment in Restricted Stock.  If there is no payout under the Profit Sharing Program for 2019, any payout under the MIP to an Executive Officer Participant will be made in shares of Restricted Stock rather than in cash, with the number of shares of Restricted Stock being equal to the result of the following formula (“MIP Restricted Stock”):    (A÷B), where2:

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

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

 (ii)    Lapsing of Restrictions; Forfeiture.  Until the restrictions imposed by this Section 7(b)(ii) (the “Restrictions”) have lapsed pursuant to the terms below, an Executive Officer Participant will not be permitted to sell, exchange, assign, transfer or

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

7
                    

    

 otherwise dispose of the MIP Restricted Stock, and the MIP Restricted Stock will be subject to forfeiture as set forth below.  

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

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

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

 (iii)    Dividends.  In the event a cash dividend shall be paid in respect of Shares at a time the Restrictions on the MIP Restricted Stock have not lapsed, the Participant shall be eligible to receive the dividend upon the lapse of the Restrictions.  The Restrictions shall apply to any such dividend.
(iv)    Performance Compensation Plan; Written Notice. The MIP Restricted Stock will otherwise be subject to the terms of the Performance Compensation Plan.  In the event any Executive Officer Participant’s MIP Award is converted to MIP Restricted Stock, such Participant will receive a written notice of such conversion with the details thereof as soon as practicable after the MIP payment date.

8.    Change in Employment Status. 

(a)    Termination of Employment.    

(i)    A Termination Event in 2019—General.  Except as expressly set forth in this Section 8, in the event a Participant’s employment with Delta terminates for any reason prior to the end of the workday on December 31, 2019, such Participant will be ineligible for any award under the MIP.  In other words, if a Participant is employed 

8
                    

    

according to Company records through the end of the workday on December 31, 2019, the Participant will be eligible for any award earned under the MIP for 2019, including, if applicable, MIP Restricted Stock.

(ii)    Termination on or after January 1, 2020.  Subject to Section 7(b), a Participant who incurs a Termination of Employment for any reason other than for Cause on or after January 1, 2020 will remain eligible for any unpaid MIP Award, which award will be paid according to the terms of Section 7(a).  A Participant who is terminated by the Company for Cause on or after January 1, 2020 will forfeit any unpaid MIP Award.

(iii)    Pro-Rated MIP Awards.  

(A)    Disability or Retirement.  This Section 8(a)(iii)(A) applies to any Participant who incurs a Termination of Employment prior to January 1, 2020 due to the Participant’s Disability or Retirement.  Subject to the Participant’s execution of a waiver and release of claims in a form and manner satisfactory to the Company, such Participant will be eligible to receive a MIP Award based on the Participant’s Base Salary determined as of his or her Termination of Employment date, but otherwise in the same manner, to the same extent and at the same time as the Participant would have received such MIP Award if such Participant’s employment had continued through December 31, 2019 (i.e., based on achievement of applicable performance measures).  The Individual Performance Measure will be calculated based on target level performance, or, at the discretion of the Company, a higher level based on the Participant’s most recent performance evaluation prior to the Termination of Employment.  

(B)    Termination of Employment Without Cause or Resulting in Benefits under the Severance Plans.  This Section 8(a)(iii)(B) applies to any Participant who incurs a Termination of Employment prior to January 1, 2020 due to either (1) a Termination of Employment by the Company without Cause or (2) for any other reason that entitles such Participant to benefits under the Delta Air Lines, Inc. Officer and Director Severance Plan or any other Company-sponsored severance plan in which a Participant is eligible to participate (the “Severance Plans”).  Subject to the Participant’s execution of a waiver and release of claims in a form and manner satisfactory to the Company, such Participant will be eligible to receive a MIP Award based on the Participant’s Base Salary determined as of his or her Termination of Employment date, but otherwise in the same manner, to the same extent and at the same time as the Participant would have received such MIP Award if such Participant’s employment had continued through December 31, 2019 (i.e., based on achievement of applicable performance measures).  The Individual Performance Measure will be calculated based on target level performance, or, at the discretion of the Company, a higher level based on the Participant’s most recent performance evaluation prior to the Termination of Employment.

(C)    Death.  This Section 8(a)(iii)(C) applies to any Participant who incurs a Termination of Employment prior to January 1, 2020 due to the Participant’s death.  The Participant’s estate will be eligible to receive a payment 

9
                    

    

equal to the Participant’s Target MIP Award determined as of his or her Termination of Employment date made in cash as soon as practicable after the Participant’s Termination of Employment, but in no event later than 21⁄2 months following the end of the year in which the Termination of Employment occurs. 
    
(b)    Other Changes in Employment Status.  The terms of this Section 8(b) shall apply to circumstances involving new hires, promotions, demotions, transfers or leaves of absence during 2019.  After a Participant’s Target MIP Award is determined under this Section 8(b), the appropriate weighting of performance measures will apply to each portion of such Target MIP Award as set forth in Section 5.  The end of year performance evaluation will apply to any Individual Performance measure applicable to the Participant unless the Participant is no longer subject to the such evaluation process after the change in employment status, in which case the most recent performance evaluation will apply.  Any MIP Awards payable under this Section 8(b) will be paid at the same time and in the same manner as such awards are paid to active Participants, subject to Section 7(b).  

(i)    New Hires.  With respect to any individual who becomes employed by Delta as a grade 8 or any more senior MIP-eligible position during 2019 but after January 1, 2019, such individual will be a Participant in the MIP and will be eligible to receive an award under the MIP for 2019.

(ii)    Promotions.  Participants who are either promoted into a MIP-eligible employment level or promoted into a higher level of MIP participation during 2019 will have their Target MIP Award calculated based on their Base Salary earned during each MIP-eligible employment level, multiplied by the relevant total target award percentage applicable to their position or positions during 2019. 

(iii)    Demotions.  Participants who are either demoted to a position that is not eligible to participate in the MIP or demoted to a lower level of MIP participation during 2019 will have their Target MIP Award calculated based on their Base Salary earned during each MIP-eligible job level, multiplied by the relevant total target award percentage applicable to their position or positions during 2019.    

(iv)    Transfers.  In the event that during 2019, a Participant transfers employment from Delta to a Delta subsidiary or Affiliate that does not participate in the MIP, the Participant will have his or her Target MIP Award calculated based on his or her Base Salary earned as of the date immediately prior to the date the transfer is considered effective for purposes of the MIP, multiplied by the relevant total target award percentage applicable to his or her MIP-eligible position.       

(v)    Leaves of Absence.  In the event that during 2019, a Participant goes on any type of leave at any time during 2019, the Participant will have his Target MIP Award calculated, subject to Section 8(b)(vi), based on his or her Base Salary earned during 2019 while actively employed, multiplied by the relevant total target award percentage applicable to his or her MIP-eligible position.

(vi)    Military Leave.  In the event that at any time during 2019, a Participant is on a Military Leave of Absence, his or her Base Salary shall be equal to the Base Salary the Participant earned during 2019 plus any amount of base salary such Participant 

10
                    

    

would have earned had he or she been actively employed by Delta in any corresponding MIP-eligible position during such leave. “Military Leave of Absence” means a Participant’s absence from his or her position of employment at any time during 2019 because of service in the uniformed services, as defined under the Uniformed Services Employment and Reemployment Rights Act of 1994, as amended (“USERRA”); provided, that a Participant must provide the Company appropriate evidence that his or her absence was due to service in the uniformed services and the period of such service in order to be considered to be on a Military Leave of Absence for purposes of the MIP.  For purposes of the MIP, any Participant who is absent due to military service (according to Delta’s records) as of December 31, 2019 and has been on such leave for a cumulative period (during the period he or she has been employed by Delta) of five years or less, will be presumed to be on a Military Leave of Absence.  Any Participant who is similarly absent due to military service (based on Delta’s records) and who has been on such leave for a period of more than five years will not be considered to be on a Military Leave of Absence until he or she provides appropriate evidence that he or she is entitled to an exception to the five-year limit on uniformed service as set forth in USERRA.

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

10.    Effective Date.  The MIP will become effective as of January 1, 2019; provided however, if on or before the date the Committee adopts the MIP any employee who would otherwise have participated in the MIP is informed that his or her employment will be terminated by the Company without Cause, any severance such employee is entitled to receive will be calculated based on the 2018 Management Incentive Plan as in effect as of December 31, 2018.

11.    Amendment.  Except as otherwise expressly set forth in this Section and Section 14, the terms of Section 14 of the Performance Compensation Plan shall apply to any amendment or termination of the MIP. In addition, the terms applicable to any Participant will be subject in their entirety to the terms of any offer letter or other document to which the Participant has agreed.  The terms of such offer letter or other document, if contrary to the terms of the MIP, shall govern the rights of the corresponding Participant.

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

11
                    

    

13.    Section 409A of the Code.  Notwithstanding anything in the MIP to the contrary, any payments or benefits under the MIP are intended to be exempt from the applicable requirements of Section 409A of the Code and the regulations promulgated thereunder (together, “Section 409A”) and shall be limited, construed and interpreted in accordance with such intent; provided, however, to the extent that any amount paid hereunder in connection with a Termination of Employment constitutes deferred compensation under Section 409A and is paid to a “specified employee” as defined in Section 409A, the payment of such amount will be delayed for six months.

14.    Clawback.  Notwithstanding anything to the contrary in the MIP and subject to further amendment of this Section 14 to the extent required to be in compliance with any applicable law or regulation or Delta’s internal clawback policy, as it may be amended from time to time, if the Committee determines that a vice president or more senior officer Participant has engaged in fraud or misconduct that caused, in whole or in part, the need for a required restatement of Delta’s financial statements filed with the U.S. Securities and Exchange Commission, the Committee will review all incentive compensation awarded to or earned by such Participant, including, without limitation, any MIP Award, with respect to fiscal periods materially affected by the restatement and may recover from the Participant all such incentive compensation to the extent that the Committee deems appropriate after taking into account the relevant facts and circumstances.  Any recoupment hereunder may be in addition to any other remedies that may be available to Delta under applicable law, including, disciplinary action up to  
and including termination of employment.        
                                                  

12
                    

EXHIBIT A—DELTA CONNECTION GOALS:
Delta Connection’s Operational Performance will be based on the number of times during 2019 that the group of Delta Connection carriers meets or exceeds its monthly operational goals for completion factor and on-time arrival performance (the “Delta Connection Goals”).  The monthly Delta Connection Goals are included on the following table:
	
					
	 
	 
	 
	 
	 

	 
	Completion Factor 
2019 Goal
	On-Time Arrival Performance 
2019 Goal

	Month in 2019
	Relative CF
	Absolute CF
	Relative A0
	Absolute A0

	January
	1st
	96.8%
	1st
	65.7%

	February
	1st
	96.7%
	1st
	65.3%

	March
	1st
	99.0%
	1st
	67.2%

	April
	1st
	99.4%
	1st
	72.1%

	May
	1st
	99.8%
	1st
	71.6%

	June
	1st
	98.7%
	1st
	68.0%

	July
	1st
	98.2%
	1st
	68.2%

	August
	1st
	98.3%
	1st
	70.1%

	September
	1st
	99.3%
	1st
	74.5%

	October
	1st
	99.3%
	1st
	76.0%

	November
	1st
	99.4%
	1st
	74.1%

	December
	1st
	97.9%
	1st
	66.4%

	Overall
	1st
	98.6%
	1st
	70.0%

The monthly goal in each performance category may be met by achieving either the specific numeric target or ranking (with a comparator group ranking of “1” being the best performance).

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

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

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

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

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

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

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

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

    

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

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

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

		
	F.
	The comparator group for the relative measure shall include the regional portfolios for Alaska Air Group, Inc., United Continental Holdings, Inc. and American Airlines Group, Inc. and the data is compiled by a third party selected by the Company.Exhibit

EXHIBIT 10.3

SECOND AMENDMENT TO CREDIT AGREEMENT

THIS SECOND AMENDMENT TO CREDIT AGREEMENT, dated as of January 16, 2019 (this “Amendment”), amends the Amended and Restated Credit Agreement, dated as of March 6, 2015 (the “Credit Agreement”) among Portland General Electric Company (the “Borrower”), the financial institutions from time to time parties thereto as lenders (collectively, together with their respective successors and assigns, the “Lenders”) and Wells Fargo Bank, National Association, as administrative agent for the Lenders (in such capacity, the “Agent”).  Capitalized terms used but not otherwise defined herein have the meanings assigned to such terms in the Credit Agreement (as amended hereby).

WHEREAS, the parties hereto desire to amend the Credit Agreement as provided herein.

NOW, THEREFORE, the parties hereto agree as follows:

SECTION 1    Amendments.  

(a)The following definitions are hereby added to Article I of the Credit Agreement in the appropriate alphabetical order:
“ERISA Benefit Plan” means any of (a) an “employee benefit plan” (as defined in ERISA) that is subject to Title I of ERISA, (b) a “plan” as defined in Section 4975 of the Code or (c) any Person whose assets include (for purposes of ERISA Section 3(42) or otherwise for purposes of Title I of ERISA or Section 4975 of the Code) the assets of any such “employee benefit plan” or “plan”.

“PTE” means a prohibited transaction class exemption issued by the U.S. Department of Labor, as any such exemption may be amended from time to time.

“Replacement Rate” is defined in Section 3.3(b). 

“Second Amendment Effective Date” means January 19, 2019. 

(b)Clause (iii) in the definition of “Alternate Base Rate” in Article I of the Credit Agreement is hereby amended to read as follows:
(iii) subject to the implementation of a Replacement Rate in accordance with Section 3.3(b), the sum of (a) the quotient of (x) LIBOR applicable for a one month U.S. dollar deposit on such day (or if such day is not a Business Day, the immediately preceding Business Day) divided by (y) one minus the Reserve Requirement (expressed as a decimal) applicable to a Eurodollar Advance with a one-month Interest Period plus (b) 1.00%.
(c)The definition “Eurodollar Base Rate” in Article I of the Credit Agreement is hereby amended to read as follows:
“Eurodollar Base Rate” means, with respect to a Eurodollar Advance for the relevant Interest Period, LIBOR quoted two (2) London Banking Days prior to the first day of such Interest Period, applicable to dollar deposits with a maturity equal to such Interest Period.  If such rate is not so published at such time for any reason, then “LIBOR” for such Interest Period shall be the rate per annum determined by the Agent to be the rate at which deposits in U.S. dollars for delivery on the first day of such Interest Period in same day funds in the approximate amount of the Eurodollar Advance being made, continued or converted by the Agent and with a term equivalent to such Interest Period would be offered by the Agent’s London Branch to major banks in the London interbank eurodollar market at their request at approximately 11:00 a.m. (London time) two London Banking Days prior to the commencement of such Interest Period.  Notwithstanding the foregoing, (x) in no event shall the Eurodollar Base Rate (including any Replacement Rate with respect thereto) be less than 0%, and (y) unless otherwise specified in any amendment to this Agreement entered into in accordance with Section 3.3(b), in the event that a Replacement Rate with respect to the Eurodollar Base Rate is 

1

implemented, then all references herein to the Eurodollar Base Rate shall be deemed references to such Replacement Rate.
(d)The phrase “arranged by Federal funds brokers on such day” is hereby deleted from the definition of Federal Funds Rate in Article I of the Credit Agreement. 
(e)The definition of “LIBOR” in Article I of the Credit Agreement is hereby amended to read as follows:
“LIBOR” means, subject to the implementation of a Replacement Rate in accordance with Section 3.3(b), the rate of interest per annum determined on the basis of the rate for deposits in Dollars for a period equal to the applicable Interest Period as published by the ICE Benchmark Administration Limited, a United Kingdom company, or a comparable or successor quoting service approved by the Agent,  at approximately 11:00 a.m. (London time) two (2) London Banking Days prior to the first day of the applicable Interest Period.  If, for any reason, such rate is not so published, then “LIBOR” shall be determined by the Agent to be the arithmetic average of the rate per annum at which deposits in Dollars would be offered by first class banks in the London interbank market to the Agent at approximately 11:00 a.m. (London time) two (2) London Banking Days prior to the first day of the applicable Interest Period for a period equal to such Interest Period.  Each calculation by the Agent of LIBOR shall be conclusive and binding for all purposes, absent manifest error.  Notwithstanding the foregoing, (x) in no event shall LIBOR (including any Replacement Rate with respect thereto) be less than 0%, and (y) unless otherwise specified in any amendment to this Agreement entered into in accordance with Section 3.3(b), in the event that a Replacement Rate with respect to LIBOR is implemented, then all references herein to LIBOR shall be deemed references to such Replacement Rate. 
(f)The definition of “LIBOR Market Index Rate” in Article I of the Credit Agreement is hereby amended to read as follows: 
“LIBOR Market Index Rate” means, for any day, the one month rate of interest per annum as published by the ICE Benchmark Administration Limited, a United Kingdom company, or a comparable or successor quoting service approved by the Agent, as the London interbank offered rate for deposits in Dollars at approximately 11:00 A.M. (London time) on such day, or if such day is not a London Banking Day, then the immediately preceding London Banking Day (or if not so published, then as determined by the Agent from another recognized source or interbank quotation), or another rate as agreed to by the Agent and the Borrower.  Notwithstanding the foregoing, (x) in no event shall the LIBOR Market Index Rate (including any Replacement Rate with respect thereto) be less than 0%, and (y) unless otherwise specified in any amendment to this Agreement entered into in accordance with Section 3.3(b), in the event that a Replacement Rate with respect to the LIBOR Market Index Rate is implemented, then all references herein to the LIBOR Market Index Rate shall be deemed references to such Replacement Rate.
(g)The definition of “Scheduled Termination Date” in Article I of the Credit Agreement is hereby amended to read as follows: 
“Scheduled Termination Date” means, for any Lender, November 14, 2022 or such later date as may be established for such Lender in accordance with Section 2.18.
(h)Section 2.18 of the Credit Agreement is hereby amended to read as follows:
At any time after the Second Amendment Effective Date, the Borrower may, once during any calendar year, request a one-year extension of each Lender’s Scheduled Termination Date by submitting a request for an extension to the Agent (an “Extension Request”) prior to any anniversary of the Second Amendment Effective Date commencing with the first anniversary thereof (the “Extension Date”); provided, that in no event shall the time period between the applicable Extension Date and the latest Scheduled Termination Date (after giving effect to any extension pursuant to this Section 2.18) exceed five (5) years.  Any Extension Request shall specify the date (which must be at least thirty (30) days after the Extension Request is delivered to the Agent but no later than thirty (30) days prior to the Extension Date) as of which the Lenders must respond to such Extension Request (the “Response Date”).  Promptly upon receipt of an Extension Request, the Agent shall notify each Lender of the contents thereof.  Each Lender shall, not later than the Response Date for any Extension Request, deliver a written response to the Agent approving or rejecting such Extension Request (and any Lender that fails to deliver such a response by the Response Date shall be deemed to have rejected such 

2

Extension Request).  If Lenders that collectively have a Pro Rata Share of more than 50% approve an Extension Request (which approval shall be at the sole discretion of each Lender), then the then-effective Final Termination Date, and the Scheduled Termination Date for each such approving Lender, shall be extended to the date that is one year after the then-effective Final Termination Date or, if such date is not a Business Day, to the next preceding Business Day (but the then-effective Scheduled Termination Date for each other Lender shall remain unchanged).  The Agent shall promptly (and in any event not later than twenty-five (25) days prior to the Extension Date for each of the Lenders) notify the Borrower, in writing, of the Lenders’ elections pursuant to this Section 2.18.  If Lenders that collectively have a Pro Rata Share of 50% or more reject an Extension Request, then the Final Termination Date, and the Scheduled Termination Date of each Lender, shall remain unchanged.  The Borrower may elect to replace any declining Lender under this Section 2.18 pursuant to the terms of Section 2.17.  Prior to the effectiveness of any Extension Request under this Section 2.18, the Agent shall have received evidence, in form and substance reasonably satisfactory to the Agent, that the Borrower has obtained the approval of the Borrower’s board of directors in connection with such Extension Request.  In connection with the effectiveness of any Extension Request, the Agent may (with the Borrower’s consent not be unreasonably withheld) seek to amend this Agreement with requisite lender consent in accordance with Section 8.2 to update operational, agency, and/or regulatory provisions to a form customarily included in credit agreements as of the Extension Date with respect to which Wells Fargo acts as administrative agent.  Any such proposed amendments must be provided to the Borrower no later than fifteen (15) days after the Extension Request. 
(i)Section 3.3 of the Credit Agreement is hereby amended to read as follows: 
3.3    Availability of Types of Advances.  
(a)    Unless and until a Replacement Rate is implemented in accordance with clause (b) below, if (x) any Lender determines that maintenance of its Eurodollar Loans at a suitable Lending Installation would violate any applicable law, rule, regulation, or directive, whether or not having the force of law, or if (y) the Required Lenders determine that (i) deposits of a type and maturity appropriate to match fund Eurodollar Advances are not available or (ii) the interest rate applicable to Eurodollar Advances does not accurately reflect the cost of making or maintaining Eurodollar Advances, then the Agent shall suspend the availability of Eurodollar Advances and require any affected Eurodollar Advances to be repaid or converted to Floating Rate Advances, subject to the payment of any funding indemnification amounts required by Section 3.4.
(b)    Notwithstanding anything to the contrary in Section 3.3(a) above, if the Agent has made the determination (which determination shall be conclusive absent manifest error, it being agreed, however, that the Agent shall not unreasonably refuse to make such determination if the Borrower so requests in writing) that (i) the circumstances described in Section 3.3(a)(y)(i) above have arisen and that such circumstances are unlikely to be temporary, (ii) any applicable interest rate specified herein is no longer a widely recognized benchmark rate for newly originated loans in the U.S. syndicated loan market in dollars or (iii) the applicable supervisor or administrator (if any) of any applicable interest rate specified herein or any Governmental Authority having, or purporting to have, jurisdiction over the Agent has made a public statement identifying a specific date after which any applicable interest rate specified herein shall no longer be used for determining interest rates for loans in the U.S. syndicated loan market in dollars, then the Agent and the Borrower may amend this Agreement to establish an alternate benchmark reference rate (including any mathematical or other adjustments to the benchmark (if any) incorporated therein) that gives due consideration to the then prevailing market convention for determining a benchmark reference rate for syndicated loans in the United States at such time (the “Replacement Rate”), in which case, the Replacement Rate shall, subject to the next sentences, replace such applicable interest rate for all purposes under the Loan Documents unless and until (A) an event described in Section 3.3(a)(y)(i), (b)(i), (b)(ii) or (b)(iii) occurs with respect to the Replacement Rate or (B) the Agent (at the direction of the Required Lenders) notifies the Borrower that the Replacement Rate does not adequately and fairly reflect the cost to the Lenders of funding the Loans bearing interest at the Replacement Rate.  Notwithstanding anything to 

3

the contrary in this Agreement or the other Loan Documents (including, without limitation, Section 8.2), such amendment shall become effective without any further action or consent of any other party to this Agreement so long as the Agent shall not have received, within five (5) Business Days of the delivery of such amendment to the Lenders, written notices from such Lenders that in the aggregate constitute Required Lenders, with each such notice stating that such Lender objects to such amendment (which such notice shall note with specificity the particular provisions of the amendment to which such Lender objects).  In connection with the establishment and application of the Replacement Rate, this Agreement and the other Loan Documents shall be amended solely with the consent of the Agent and the Borrower, as may be necessary or appropriate, in the opinion of the Agent and the Borrower, to effect the provisions of this Section 3.3(b), including, as applicable, any proposed conforming changes to the definition of “Adjusted Base Rate,” “Interest Period,” timing and frequency of determining rates and making payments of interest and other administrative matters as may be appropriate, as agreed between the Agent and the Borrower, to reflect the adoption of such Replacement Rate and to permit the administration thereof by the Agent in a manner substantially consistent with market practice (or, if the Agent determines that adoption of any portion of such market practice is not administratively feasible or that no market practice for the administration of such Replacement Rate yet exists, in such other manner of administration as the Agent determines with the consent of the Borrower (it being understood that any such modification shall not require the consent of, or consultation with, any of the Lenders)).  Notwithstanding the foregoing, if such Replacement Rate shall be less than zero, such rate shall be deemed to be zero for the purposes of this Agreement.
(j)The following sentence is hereby added to the end of Section 5.7 of the Credit Agreement to read as follows:
As of the Second Amendment Effective Date, the Borrower nor any of its Subsidiaries are, and will not be, an ERISA Benefit Plan.
(k)The following paragraph is hereby added to the end of Section 8.2 of the Credit Agreement to read as follows:
Notwithstanding anything to the contrary in this Agreement, the Agent may, without the consent of any Lender, enter into amendments or modifications to this Agreement or any of the Loan Documents or enter into additional Loan Documents as the Agent reasonably deems appropriate in order to implement any Replacement Rate or otherwise effectuate the terms of Section 3.3(b) in accordance with the terms of Section 3.3(b). 
(l)A new Section 9.17 is hereby added to the Credit Agreement to read as follows:
9.17    Certain ERISA Matters.  

(a)    Each Lender (x) represents and warrants, as of the date such Person became a Lender party hereto, to, and (y) covenants, from the date such Person became a Lender party hereto to the date such Person ceases being a Lender party hereto, for the benefit of, the Agent and not, for the avoidance of doubt, to or for the benefit of the Borrower, that at least one of the following is and will be true: 

(i)    such Lender is not using “plan assets” (within the meaning of Section 3(42) of ERISA or otherwise) of one or more ERISA Benefit Plans with respect to such Lender’s entrance into, participation in, administration of and performance of the Loans, the Letters of Credit, the Commitments or this Agreement;

(ii)    the transaction exemption set forth in one or more PTEs, such as PTE 84-14 (a class exemption for certain transactions determined by independent qualified professional asset managers), PTE 95-60 (a class exemption for certain transactions involving insurance company general accounts), PTE 90-1 (a class exemption for certain transactions involving insurance company pooled separate accounts), PTE 91-38 (a class exemption for certain transactions involving bank collective investment funds) or PTE 96-23 (a class exemption for certain transactions determined by in-house asset managers), is applicable with respect to 

4

such Lender’s entrance into, participation in, administration of and performance of the Loans, the Letters of Credit, the Commitments and this Agreement; 
    
(iii)    (A) such Lender is an investment fund managed by a “Qualified Professional Asset Manager” (within the meaning of Part VI of PTE 84-14), (B) such Qualified Professional Asset Manager made the investment decision on behalf of such Lender to enter into, participate in, administer and perform the Loans, the Letters of Credit, the Commitments and this Agreement, (C) the entrance into, participation in, administration of and performance of the Loans, the Letters of Credit, the Commitments and this Agreement satisfies the requirements of sub-sections (b) through (g) of Part I of PTE 84-14 and (D) to the best knowledge of such Lender, the requirements of subsection (a) of Part I of PTE 84-14 are satisfied with respect to such Lender’s entrance into, participation in, administration of and performance of the Loans, the Letters of Credit, the Commitments and this Agreement; or
    
(iv)    such other representation, warranty and covenant as may be agreed in writing between the Agent, in its sole discretion, and such Lender.

(b)    In addition, unless either (1) sub-clause (i) in the immediately preceding clause (a) is true with respect to a Lender or (2) a Lender has provided another representation, warranty and covenant as provided in sub-clause (iv) in the immediately preceding clause (a), such Lender further (x) represents and warrants, as of the date such Person became a Lender party hereto, to, and (y) covenants, from the date such Person became a Lender party hereto to the date such Person ceases being a Lender party hereto, for the benefit of, the Agent, and not, for the avoidance of doubt, to or for the benefit of the Borrower, that the Agent is not a fiduciary with respect to the assets of such Lender involved in such Lender’s entrance into, participation in, administration of and performance of the Loans, the Letters of Credit, the Commitments and this Agreement (including in connection with the reservation or exercise of any rights by the Agent under this Agreement, any Loan Document or any documents related hereto or thereto.

SECTION 2    Representations and Warranties; No Conflicts.

2.1    Representations and Warranties of all Parties.  Each party hereto represents and warrants that (a) it has taken all necessary action to authorize the execution, delivery and performance of this Amendment, (b) this Amendment has been duly executed and delivered by such Person and constitutes such Person’s legal, valid and binding obligation, enforceable in accordance with its terms, except as such enforceability may be subject to (i) bankruptcy, insolvency, reorganization, fraudulent conveyance or transfer, moratorium or similar laws affecting creditors’ rights generally and (ii) general principles of equity (regardless of whether such enforceability is considered in a proceeding at law or in equity) and (c) no consent, approval, authorization or order of, or filing, registration or qualification with, any court or governmental authority or third party is required in connection with the execution or delivery by such Person of this Amendment.

2.2    Representations and Warranties of Borrower.  The Borrower represents and warrants to the Lenders that (a) the representations and warranties of the Borrower set forth in Article V of the Credit Agreement are true and correct in all material respects as of the date hereof, except to the extent any such representation or warranty is stated to relate solely to an earlier date, in which case such representation or warranty shall have been true and correct in all material respects on and as of such earlier date and (b) no event has occurred and is continuing which constitutes a Default or an Unmatured Default.

2.3    No Conflicts.  Neither the execution and delivery of this Amendment, nor the consummation of the transactions contemplated herein, nor performance of and compliance with the terms and provisions hereof by the Borrower will (a) violate, contravene or conflict with any provision of its respective articles or certificate of incorporation, bylaws or other organizational or governing document or (b) violate, contravene or conflict with any law, rule, regulation, order, writ, judgment, injunction, decree, material contract or permit applicable to the Borrower.

5

SECTION 3    Effective Date.  This Amendment shall become effective as of the date hereof upon satisfaction of the following conditions precedent:

3.1    Receipt by the Agent of counterparts of this Amendment executed by the Borrower, each Lender and the Agent.

3.2    Receipt by the Agent of:

(a)    Copies, certified by the Secretary or Assistant Secretary of the Borrower, of its bylaws and of its Board of Directors’ resolutions authorizing the execution of this Amendment by the Borrower.

(b)    Evidence, in form and substance satisfactory to the Agent, that the Borrower has obtained all governmental approvals, if any, necessary for it to enter into this Amendment, including, without limitation, the approval of the Public Utility Commission of Oregon.

3.3     The Agent shall have received all fees and other amounts due and payable by the Borrower on or prior to the effective date of this Amendment, including, to the extent invoiced, reimbursement or payment of all out-of-pocket expenses required to be reimbursed or paid by the Borrower hereunder.

SECTION 4    Miscellaneous.

4.1    Continuing Effectiveness.  As hereby amended, the Credit Agreement shall remain in full force and effect and is hereby ratified and confirmed in all respects.  After the effectiveness hereof, all references in the Credit Agreement or other Loan Documents to the “Agreement”, the “Credit Agreement” or similar terms shall refer to the Credit Agreement as amended hereby.  This Amendment is a Loan Document.

4.2    Counterparts.  This Amendment may be executed in any number of counterparts and by the different parties on separate counterparts, and each such counterpart shall be deemed to be an original but all such counterparts shall together constitute one and the same Amendment.  A counterpart hereof, or a signature page hereto, delivered to the Agent by facsimile or electronic mail (in a .pdf or similar file) shall be effective as delivery of a manually-signed counterpart hereof.

4.3    Expenses.  The Borrower agrees to pay all reasonable costs and expenses of the Agent, including reasonable fees and charges of special counsel to the Agent, in connection with the preparation, execution and delivery of this Amendment.

4.4    Governing Law.  This Amendment shall be construed in accordance with and governed by the internal laws (without regard to the conflict of laws provisions) of the State of New York.

4.5    Successors and Assigns.  This Amendment shall be binding upon the Borrower, the Lenders and the Agent and their respective successors and assigns, and shall inure to the benefit of the Borrower, the Lenders and the Agent and the respective successors and assigns of the Lenders and the Agent.

[Signature Pages Follow]
        

6

IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the date first above written.

PORTLAND GENERAL ELECTRIC COMPANY

By: /s/ James F. Lobdell                                
Name: James F. Lobdell                                
Title:SVP Finance, CFO, Treasurer                            

7

		
	ADMINISTRATIVE AGENT:
	WELLS FARGO BANK, NATIONAL ASSOCIATION, as Administrative Agent 

By: /s/ Gregory R. Gredvig                            
Name: Gregory R. Gredvig                            
Title: Director                                    

LENDERS:                WELLS FARGO BANK, NATIONAL ASSOCIATION, as a 
Lender and L/C Issuer

By: /s/ Gregory R. Gredvig                            
Name: Gregory R. Gredvig                            
Title: Director                                    

JPMORGAN CHASE BANK, N.A., as a Lender and L/C Issuer

By: /s/ Nancy R. Barwig                        
Name: Nancy R. Barwig                            
Title: Credit Risk Director                            

U.S. BANK NATIONAL ASSOCIATION, as a Lender and L/C Issuer

By: /s/ John M. Eyerman                            
Name: John M. Eyerman                            
Title: Senior Vice President                            

BANK OF AMERICA, N.A., as a Lender and L/C Issuer

By: /s/ Daryl K. Hogge                                
Name: Daryl K. Hogge                                
Title: Senior Vice President                            

BARCLAYS BANK PLC, as a Lender and L/C Issuer

By: /s/ Sydney G. Dennis                            
Name: Sydney G. Dennis                            
Title: Director                                    

BANK OF THE WEST, as a Lender

By: /s/ John DeLaittre                                
Name: John DeLaittre                                
Title: Director                                    

COBANK, ACB, as a Lender

By: /s/ Josh Batchelder                                
Name: Josh Batchelder                                
Title: Managing Director                            

THE NORTHERN TRUST COMPANY, as a Lender

By: /s/ Jeffrey Leets                                
Name: Jeffrey Leets                                
Title: Officer                        

8

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00291-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00291-of-00352.parquet"}]]