Delta Airlines 2009 Annual Report Download - page 148

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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.
(D) The "Cumulative Revenue Growth" for Delta and each member of the Airline Peer Group shall be calculated by using the subject company's
Total Operating Revenue for the applicable periods and the following formula: (A + B ) รท C, where:
A = Total Operating Revenue for 2010 minus Total Operating Revenue for 2009;
B = Total Operating Revenue for 2011 minus Total Operating Revenue for 2010; and
C = Total Operating Revenue for 2009.
(E) "GAAP" means accounting principles generally accepted in the United States of America.
(F) "Performance Period" means the period beginning on January 1, 2010 and ending on and including December 31, 2011.
(G) "Pre-Tax Income" means, subject to Section 4(c)(v)(B) below, the subject company's consolidated pre-tax income for the applicable periods
based on its regularly prepared and publicly available statements of operations prepared in accordance with GAAP, but excluding: (i) any material asset
write downs; (ii) expenses associated with employee equity securities; (iii) gains or losses with respect to unusual or non-recurring events, including,
without limitation, changes in accounting principles, bankruptcy-related reorganization items and other out of period adjustments; and (iv) expenses
accrued with respect to any annual profit sharing plan, program or arrangement.
(H) "Total Operating Revenue" means, subject to Section 4(c)(v)(B) below, the subject company's total operating revenue for the applicable
periods based on its regularly prepared and publicly available statements of operations prepared in accordance with GAAP.
(v) Vesting.
(A) General. Subject to the terms of the 2007 Performance Plan and all other conditions included in any applicable Award Agreement, the
Performance Award shall vest, as described in this Section 4(b)(v), as of the end of the Performance Period to the extent that the Company ranks
number five (5) or better in comparison to the Airline Peer Group with respect to Cumulative Revenue Growth and/or Average Annual Pre-Tax Income
Margin, as applicable and as described below. For purposes of Cumulative Revenue Growth and Average Annual Pre-Tax Income Margin, a rank of
one (1) will be the highest and best ranking and a rank of six (6) will be the lowest and worst ranking.
(B) Committee's Authority. In determining the Cumulative Revenue Growth and the Average Annual Pre-Tax Income Margin for Delta and each
member of the Airline Peer Group, the Committee shall make such adjustments with respect to any subject company as is necessary to ensure the
results are comparable. Without limiting the generality of the forgoing, the Committee shall (i) make such determinations based on financial data filed
by the subject company with the U.S. Department of Transportation or otherwise, and (ii) exclude from any calculation any item of gain, loss or
expense to be extraordinary or unusual in nature or infrequent in occurrence.
5