Delta Airlines 2009 Annual Report Download - page 147

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(vii) Dividends. In the event a cash dividend shall be paid with respect to Shares at a time the Restrictions on the 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.
(b) Performance Awards.
(i) Award Grant. A Participant may receive a Performance Award for a specified target cash amount as set forth in the Participant's Award Agreement
(a "Performance Award").
(ii) Grant Date. The Grant Date of the Performance Award will be determined by the Committee and set forth in the Participant's Award Agreement.
(iii) Payout Criteria and Form of Payment. Except as otherwise expressly set forth in this Section 4(b), payment, if any, of a Performance Award will
be based on the following factors as described and defined below: (A) the Cumulative Revenue Growth during the Performance Period of the Company
relative to the members of the Airline Peer Group; and (B) the Average Annual Pre-Tax Income Margin during the Performance Period of the Company
relative to the members of the Airline Peer Group.
The payout, if any, of a Performance Award will be made (A) in Shares, calculated based on the Conversion Formula (as defined below), to each
Participant who is employed by the Company as an executive vice president or more senior officer or holds the position of general counsel or chief
financial officer of the Company ("Executive Officer Participant") at the time of such payout; and (B) in cash in all other circumstances.
(iv) Definitions.
(A) "Airline Peer Group" means AMR Corporation, Continental Airlines, Inc., Southwest Airlines Co., UAL Corporation and US Airways Group,
Inc.
(B) The "Average Annual Pre-Tax Income Margin" for Delta and each member of the Airline Peer Group shall be calculated by using the subject
company's Pre-Tax Income and Total Operating Revenue for the applicable periods and the following formula: (A ÷ B ), where:
A = Pre-Tax Income for 2010 and 2011; and
B = Total Operating Revenue for 2010 and 2011.
(C) The "Conversion Formula" will apply to convert from cash to Shares the payout, if any, of a Performance Award to a person who is an
Executive Officer Participant at the time of such payout. First, the cash amount of the payout is calculated in the same manner as if the payout is being
made in cash. Next, the cash amount is converted into a number of Shares based on the following formula: A ÷ B, where:
A = the amount of the payout for the Performance Award if it is paid in cash; and
B = the closing price of a Share on the New York Stock Exchange on the later of (1) date that the Committee approves the payouts, if any, of the
Performance Awards to the Executive Officer Participants following the Committee's determination of the achievement of the payout criteria described
in Section 4(b)(iii) and (2) the third business 4