Document:

Exhibit 10.4

 

FINAL

 

AMENDMENT

TO THE

NORTHWEST AIRLINES, INC.

2003 LONG TERM CASH INCENTIVE PLAN

AWARD ACKNOWLEDGEMENT

(Effective as of April 14, 2008)

 

This AMENDMENT
TO THE NORTHWEST AIRLINES, INC. 2003 LONG TERM CASH INCENTIVE PLAN AWARD
ACKNOWLEDGEMENT (the “Amendment”) is hereby adopted and approved by the Compensation
Committee of the Board of Directors of Northwest Airlines Corporation (“Northwest
Airlines Corp.”) as of the date set forth above.

 

Whereas Northwest
Airlines, Inc. (the “Company”) currently maintains the Northwest Airlines, Inc.
2003 Long Term Cash Incentive Plan (the “Plan”) pursuant to which the Company
previously granted Award Acknowledgements (each an “Award”) to the Participant;

 

Whereas the
Participant currently has an outstanding Award for a Performance Period
beginning on January 1, 2007 and ending on December 31, 2008, and an
outstanding Award for a Performance Period beginning on January 1, 2008
and ending on December 31, 2009;

 

Pursuant to
the authority granted under Section 7(f) of the Plan, the
Compensation Committee of the Board of Directors of Northwest Airlines Corp.
hereby amends each of the Participant’s foregoing Awards under the Plan as
follows:

 

1.                             Amendment
of the Award.  Section 6 of the Award
is amended by adding thereto the following:

 

“Notwithstanding the foregoing, in the event of a Change in Control,
the Administrator shall not be permitted to reduce any cash payment otherwise
payable under this Award or terminate this Award at any time prior to the
Payment Date.”

 

2.                             Amendment
of the Award. The following Section 12 is hereby added to the Award:

 

“12.         Adjustments Upon a Change in Control.  In the event of a Change in Control, the
Administrator shall, in good faith, make any adjustment it reasonably
determines to be equitable to the performance levels set forth in Section 2
of this Award with regard to the Performance Period in effect at the time of
the Change in Control to reflect any change to the business of the Company (or
any successor to the Company) resulting from such Change in Control.”

 

 

3.                             Definitions.
Except as otherwise defined in this Amendment, capitalized terms used but not
defined herein shall have the meanings given them in the Northwest Airlines, Inc.
2003 Long Term Cash Incentive Plan or the Award.

 

4.                             General.  References to the “Award” contained in the
Award shall mean the Award as amended by this Amendment.  Except as herein provided, the Award shall
remain unchanged and in full force and effect.

 

Adopted by the Compensation Committee of the Board of Directors of Northwest
Airlines Corporation on April 14, 2008.Exhibit 10.5

 

FINAL

 

AMENDMENT NO. 2

TO THE

NORTHWEST AIRLINES CORPORATION

2007 STOCK INCENTIVE PLAN

(Effective as of April 14, 2008)

 

This AMENDMENT
NO. 2 TO THE NORTHWEST AIRLINES CORPORATION 2007 STOCK INCENTIVE PLAN (the “Amendment”)
is hereby adopted and approved by the Board of Directors of Northwest Airlines
Corporation (the “Company”) as of the date set forth above.

 

Pursuant to
the authority granted under Article 7 of the Northwest Airlines
Corporation 2007 Stock Incentive Plan (the “Plan”), the Board of Directors of
the Company hereby amends the Plan as follows:

 

1.                             Amendment
of the Plan.  Section 13.2(a) of
the Plan is hereby deleted in its entirety and replaced with the following:

 

“In the event of a Change of Control (other than a Change of Control
occurring by virtue of an event described in Section 2.1(e)(i) hereof),
(i) any outstanding Awards then held by Participants which are
unexercisable or otherwise unvested or subject to lapse restrictions shall
automatically be deemed, upon such Change of Control, exercisable or otherwise
vested or no longer subject to lapse restrictions, and (ii) the Committee
may, but shall not be obligated to (A) cancel Awards for fair value (as
determined in the sole discretion of the Committee) which, in the case of Stock
Options and Stock Appreciation Rights, may equal the excess, if any, of value
of the consideration to be paid in the Change of Control transaction to holders
of the same number of Shares subject to such Stock Options or Stock
Appreciation Rights (or, if no consideration is paid in any such transaction,
the Fair Market Value of the Shares subject to such Stock Options or Stock
Appreciation Rights) over the aggregate exercise price of such Stock Options or
Stock Appreciation Rights, (B) provide for the issuance of substitute
Awards that will substantially preserve the otherwise applicable terms of any
affected Awards previously granted hereunder as determined by the Committee in
its sole discretion or (C) provide that for a period of at least 30 days prior
to the Change of Control, such Stock Options or Stock Appreciation Rights shall
be exercisable as to all shares subject thereto and that upon the occurrence of
the Change of Control, such Stock Options or Stock Appreciation Rights shall
terminate and be of no further force and effect.”

 

2.                             Amendment
of the Plan. Section 13.2(b) of the Plan is hereby deleted in its
entirety and replaced with the following:

 

 

“Notwithstanding any provision to the contrary herein (including Section 6.1(b)),
except as otherwise specified in an Award Agreement, if a Participant’s
employment is terminated without Cause or if a Participant terminates
employment for Good Reason, in each case, within two (2) years following a
Change of Control, the Participant will have three (3) years following the
date of such termination of employment to exercise any portion of a Stock
Option or Stock Appreciation Right (to the extent such Stock Option or Stock
Appreciation Right is exercisable, and not previously exercised or cancelled)
thereafter; provided, however, no Stock Option or Stock Appreciation Right
shall be exercisable later than ten (10) years after the date granted.  The term “Good Reason” means, on or after a
Change of Control, “Good Reason” as defined in the Participant’s Award
Agreement, or, if not defined therein, “Good Reason” means any one or more of
the following: (i) a material reduction in a Participant’s base salary or
target bonus below the level of the Participant’s base salary or target bonus
immediately prior to the Change of Control, (ii) any material diminution
in a Participant’s duties or responsibilities, or (iii) the relocation of
the Participant’s principal place of employment by more than 50 miles
(excluding travel requirements relating to Participant’s duties), without the
Participant’s consent; provided, however, that the foregoing
events shall constitute Good Reason only if the Company fails to cure such
event within thirty (30) days after receipt from the Participant of written
notice of the event which constitutes Good Reason; and provided, further,
that “Good Reason” shall cease to exist for an event on the 60th day
following the later of its occurrence or the Participant’s knowledge thereof,
unless the Participant has given the Company written notice thereof prior to
such date.  The term “Cause” means “Cause”
as defined in an Award Agreement or, if not defined therein, “Cause” shall mean
the occurrence of any one or more of the following: (A) an act or acts of
personal dishonesty by the Participant intended to result in substantial
personal enrichment of the Participant at the expense of the Company or a
Subsidiary, (B) an act or acts of personal dishonesty by the Participant
intended to cause substantial injury to the Company or a Subsidiary, (C) material
breach (other than as a result of a Disability) by the Participant of the
Participant’s obligations under the terms and conditions of the Participant’s
employment, which action was (x) undertaken without a reasonable belief
that the action was in the best interests of the Company or a Subsidiary and (y) not
remedied within fifteen (15) days after receipt of written notice from the
Company or a Subsidiary specifying the alleged breach, or (D) the
conviction of the Participant of a felony.”

 

3.                             Definitions.
Except as otherwise defined in this Amendment, capitalized terms used but not
defined herein shall have the meanings given them in the Plan.

 

4.                             General.  References to the “Plan” contained in the
Plan shall mean the Plan as amended by this Amendment.  Except as herein provided, the Plan shall
remain unchanged and in full force and effect.

 

 

Adopted by the Board of Directors of Northwest Airlines Corporation on April 14,
2008.Exhibit 10.6

 

FINAL

Director Option

 

AMENDMENT NO. 1

TO THE

NORTHWEST AIRLINES CORPORATION

2007 STOCK INCENTIVE PLAN

NON-QUALIFIED STOCK OPTION AWARD

(Director)

(Effective as of April 14, 2008)

 

This AMENDMENT
NO. 1 TO THE NORTHWEST AIRLINES CORPORATION 2007 STOCK INCENTIVE PLAN
NON-QUALIFIED STOCK OPTION AWARD (the “Amendment”) is hereby adopted and
approved by the Board of Directors of Northwest Airlines Corporation (the “Company”)
as of the date set forth above.

 

Pursuant to
the authority granted under Section 3.1(g) of the Northwest Airlines
Corporation 2007 Stock Incentive Plan (the “Plan”), the Board of Directors of
the Company hereby amends the Plan’s Non-Qualified Stock Option Award (the “Option”)
as follows:

 

1.                             Amendment
of the Option.  Section 2 of the
Option is hereby amended by deleting the penultimate sentence therein in its
entirety and replacing it with the following:

 

“Notwithstanding the foregoing, in the event the Company has not
received all such required approvals on or before the date of the meeting of
the Company’s stockholders that next follows the Grant Date (the “Stockholder
Meeting”), then the Option shall be cancelled immediately and the Company shall
have no further obligations hereunder.”

 

 2.                            Amendment
of the Option.  Section 3 of the
Option is hereby amended: by deleting “One installment equal to 33.33% of the
Option upon May 31, 2008” and replacing it with the following: “One
installment equal to 33.33% of the Option upon the later of (a) May 31,
2008, and (b) the date of the Stockholder Meeting.”

 

3.                             Amendment of the
Option.  Section 3 of the Option
is hereby amended by adding thereto the following:

 

“In the event of a Change of Control, the Option shall, to the extent
then outstanding, vest in accordance with Section 13.2(a) of the
Plan.”

 

4.                             Amendment of the
Option.  Section 5.1(c) of
the Option is hereby deleted in its entirety and replaced with the following:

 

 

“(c)                         If the Optionee ceases
to be a member of the Company’s Board of Directors for any reason other than
the Optionee’s death, 90 days following the date the Optionee ceases to be a
member of the Company’s Board of Directors; provided,
however, in the event of a Change of Control, if immediately
following such Change of Control the Optionee does not continue as, or is not
appointed as, a member of the Board of Directors of the parent entity (the “Successor
Board”) resulting from the transaction constituting such Change of Control, or
if at any point during the two year period thereafter the non-employee director
ceases to serve as a director of the Successor Board as a result of (i) a
failure to be included in the slate of nominees to serve as directors, which
slate is included in the proxy statement approved by the Successor Board, (ii) a
failure to be re-elected as a member of 
the Successor Board notwithstanding having been included in such slate
or otherwise having been nominated to serve as a director, or (iii) such
director otherwise being removed from the Successor Board (other than for Cause
as defined below), three years following the date the Optionee is not appointed
to or otherwise ceases to be a member of, the Successor Board.  For the purposes of these Terms and
Conditions, “Cause” shall mean (a) an act or acts of personal
dishonesty by the Optionee intended to result in substantial personal
enrichment of the Optionee at the expense of the Company or a Subsidiary, (b) an
act or acts of personal dishonesty by the Optionee intended to cause
substantial injury to the Company or a Subsidiary, (c) material breach
(other than as a result of a disability) by the Optionee of the Optionee’s
obligations as a non-employee director, which action was (i) undertaken
without a reasonable belief that the action was in the best interests of the
Company or a Subsidiary and (ii) not remedied within 15 days following
written notice from the Company’s Board of Directors specifying the alleged
breach or (d) the conviction of the Optionee of a felony.”

 

5.                             Definitions.
Except as otherwise defined in this Amendment, capitalized terms used but not
defined herein shall have the meanings given them in the Northwest Airlines
Corporation 2007 Stock Incentive Plan or the Option.

 

6.                             General.  References to the “Option” contained in the
Option shall mean the Option as amended by this Amendment.  Except as herein provided, the Option shall
remain unchanged and in full force and effect.

 

Adopted by the Board of Directors of Northwest Airlines Corporation on April 14,
2008.

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