Delta Airlines 2015 Annual Report Download - page 173

(E)ForCause.UponaParticipant’sTerminationofEmploymentbytheCompanyforCause,anyunexercised
portionoftheOptionshallbeimmediatelyforfeited,includinganyportionthatwasthenexercisable.
(F)Retirement-EligibleParticipantsWhoIncuraTerminationofEmploymentforOtherReasons.IfaParticipant
whoiseligibleforRetirementis,orwouldbe,terminatedbytheCompanywithoutCause,suchParticipantshallbe
consideredtohavebeenterminatedbytheCompanywithoutCauseforpurposesoftheAgreementratherthanhavingretired,
butonlyiftheParticipantacknowledgesthat,absentRetirement,theParticipantwouldhavebeenterminatedbytheCompany
withoutCause.If,however,theemploymentofaParticipantwhoiseligibleforRetirementisterminatedbytheCompanyfor
Cause,thenregardlessofwhethertheParticipantisconsideredasaretireeforpurposesofanyotherprogram,planorpolicy
oftheCompany,forpurposesoftheAgreement,theParticipant’semploymentshallbeconsideredtohavebeenterminatedby
theCompanyforCause.
(G)ChangeinControl.NotwithstandingtheforegoingandsubjecttoSection5below,uponaParticipant’s
TerminationofEmploymentbytheCompanywithoutCauseorbytheParticipantforGoodReason(includingthe
TerminationofEmploymentoftheParticipantifheorsheisemployedbyanAffiliateatthetimetheCompanysellsor
otherwisedivestsitselfofsuchAffiliate)onorafteraChangeinControlbutpriortothesecondanniversaryofsuchChange
inControl,subjecttotheParticipant’sexecutionofawaiverandreleaseofclaimsinaformandmannersatisfactorytothe
Company,anyOptionInstallmentthatisnotexercisableatthetimeofsuchTerminationofEmploymentshallvestand
becomeexercisable,andtheentirethenexercisableportionoftheOptionshallbeexercisableduringtheperiod(1)beginning
onthedateofsuchTerminationofEmploymentand(2)endingontheearlierof(I)thethirdanniversaryofsuchTermination
ofEmploymentor(II)theExpirationDate.
5.PotentialReductioninPaymentsDuetoExciseTax.IntheeventthataParticipantbecomesentitledtobenefitsunderthe2016LTIP,
thensuchbenefits,togetherwithanypaymentorconsiderationinthenatureofvalueorcompensationtoorfortheParticipant’sbenefitunder
anyotheragreementwithorplanofDelta,shallbesubjecttoreductionassetforthinSection4(e)ofthe2009DeltaAirLines,Inc.Officer
andDirectorSeverancePlan,whichrelatestotheexcisetaxunderSection4999oftheCode.
6.Definitions.Forpurposesofthe2016LTIP,thefollowingdefinitionsareherebymodifiedassetforthbelowandwillapplyinlieuofthe
definitionssetforthinthe2007PerformancePlanorasmodified,asapplicable.
(a) Forpurposesofthe2016LTIP,“GoodReason”shallhavethemeaningsetforthinthe2007PerformancePlanexcept
thefollowingwillbeignoredforpurposesofdeterminingwhetheraParticipanthassufferedareductionthatconstitutesGoodReasonunder
the2016LTIP:(i)anylong-termawardmadetoaParticipantunderthe2007PerformancePlan;(ii)anyotherequity-basedawardsorother
incentivecompensationawardsmadetoaParticipantbyDelta(oranyAffiliateorformerAffiliate);and(iii)anyretentionpaymentorspecial
travelbenefitsprovidedtoaParticipantasaresultofhisorherinitialemploymentwithDeltaoranyAffiliate.
(b)Forpurposesofthe2016LTIP,“Retirement”meansaTerminationofEmployment(otherthanforCauseordeath)either:(i)
onorafteraParticipant’s62ndbirthdayprovidedthatsuchParticipanthascompletedatleast5years’servicesincehisorhermostrecenthire
datewiththeCompany(oranAffiliateorformerAffiliate)or(ii)onorafteraParticipant’s52ndbirthdayprovidedthatsuchParticipanthas
completedatleast10years’servicesincehisorhermostrecenthiredatewiththeCompany(oranAffiliateorformerAffiliate).
7.Clawback.Notwithstandinganythingtothecontraryinthe2016LTIPandsubjecttofurtheramendmentofthisSection7totheextent
requiredtobeincompliancewithanyapplicablelaworregulations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
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