Delta Airlines 2003 Annual Report Download - page 217

SECTION 11.05 Adjustment of Conversion Rate.
The Conversion Rate shall be adjusted from time to time by the Company
as follows:
(a) If the Company shall hereafter pay a dividend or make a
distribution to all holders of the outstanding Common Stock in shares of Common
Stock, the Conversion Rate in effect at the opening of business on the date
following the date fixed for the determination of stockholders entitled to
receive such dividend or other distribution shall be increased by multiplying
such Conversion Rate by a fraction of which:
(i) the numerator shall be the sum of (1) the number of
shares of Common Stock outstanding at the close of business on the
Record Date (as defined in Section 11.05(g)) fixed for such
determination and (2) the total number of shares of Common Stock
constituting such dividend or other distribution ; and
(ii) the denominator shall be number of shares of Common
Stock outstanding at the close of business on the Record Date (as
defined in Section 11.05(g)) fixed for such determination,
such increase to become effective immediately after the opening of business on
the day following the Record Date. If the dividend or distribution of the type
described in this Section 11.05(a) is declared but not so paid or made, the
Conversion Rate shall again be adjusted to the Conversion Rate which would then
be in effect if such dividend or distribution had not been declared.
(b) If the outstanding shares of Common Stock shall be subdivided into
a greater number of shares of Common Stock, the Conversion Rate in effect at the
opening of business on the day following the day upon which such subdivision
becomes effective shall be proportionately increased, and, conversely, if the
outstanding shares of Common Stock shall be combined into a smaller number of
shares of Common Stock, the Conversion Rate in effect at the opening of business
on the day following the day upon which such combination becomes effective shall
be proportionately reduced, such increase or reduction, as the case may be, to
become effective immediately after the opening of business on the day following
the day upon which such subdivision or combination becomes effective.
(c) If the Company shall issue rights or warrants to all holders of its
outstanding shares of Common Stock entitling them to subscribe for or purchase,
for a period expiring within 45 days after the date of issuance, shares of
Common Stock at a price per share less than the Current Market Price (as defined
in Section 11.05(g)) on the Record Date fixed for the determination of
stockholders entitled to receive such rights or warrants, the Conversion Rate
shall be increased so that the same shall equal the rate determined by
multiplying the Conversion Rate in effect immediately prior to the close of
business on such Record Date by a fraction of which:
(i) the numerator shall be the number of shares of Common
Stock outstanding at the close of business on such Record Date plus the
total number of additional shares of Common Stock so offered for
subscription or purchase; and
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