Delta Airlines 2015 Annual Report Download - page 179
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7.TimingofAwardPayments.
(a)InGeneral.SubjecttoSections7(b)and8(a)below,anypayoutstoaParticipantundertheMIPfor2016willbemadeincash,
assoonaspracticableafter(i)theCommitteecertifiestheachievementoftherequiredFinancialPerformance,OperationalPerformanceand
RevenuePerformanceresultsand(ii)whereapplicable,LeadershipEffectivenessPerformanceresultshavebeendeterminedandindividual
performancehas beenevaluated,but innoevent laterthanMarch 15,2017,unless itisadministratively impracticabletodo so,andsuch
impracticabilitywasunforeseeableattheendof2016,inwhichcasesuchpaymentshallbemadeassoonasadministrativelypracticableafter
March15,2017.Further,unlessapayoutfor2016undertheProfitSharingProgramoccursafterMarch15,2017,anypayoutunderthe2016
MIPwillnotbemadepriortoapayoutfor2016undertheProfitSharingProgram;provided,however,ifitisdeterminedtherewillbeno
payout for 2016 under the Profit Sharing Program, any MIP Awards that are payable based on Operational Performance, Revenue
Performance,LeadershipEffectivenessPerformanceorIndividualPerformancewillbepaidassoonaspracticablethereafter,butinnoevent
laterthanMarch15,2017,unlessitisadministrativelyimpracticabletodoso,andsuchimpracticabilitywasunforeseeableattheendof2016,
inwhichcasesuchpaymentshallbemadeassoonasadministrativelypracticableafterMarch15,2017.
(b)ExecutiveOfficerParticipants.PayoutsundertheMIPtoParticipantswho,asofDecember31,2016,areExecutiveOfficer
Participants(assuchtermisdefinedinSection4(a)above)willbesubjecttothefollowingtermsandconditions:
(i)PaymentinRestrictedStock.IfthereisnopayoutundertheProfitSharingProgramfor2016,anypayoutundertheMIP
to an Executive Officer Participant will be made in shares of Restricted Stock rather than in cash, with the number of shares of
RestrictedStockbeingequaltotheresultofthefollowingformula(“MIPRestrictedStock”):A÷B,where2:
A=theamountofthepayouttotheExecutiveOfficerParticipantundertheMIPhadthepayoutbeenmadeincash;and
B=theclosingpriceofaShareontheNewYorkStockExchangeonthelaterof(1)thedatethattheCommittee
approvesthepayouts,ifany,totheExecutiveOfficerParticipantsundertheMIPfollowingtheCommittee’scertificationof
theachievementoftherequiredperformancemeasuresasdescribedinSection7(a)and(2)thethirdbusinessdayfollowing
thedateonwhichtheCompanypubliclyannouncesitsannualfinancialresultsifthisdateisscheduledinthesamemonththat
theCommitteeapprovessuchpayouts,ifany.
(ii)LapsingofRestrictions;Forfeiture.UntiltherestrictionsimposedbythisSection7(b)(ii)(the“Restrictions”)have
lapsed pursuant to the terms below, an Executive Officer Participant will not be permitted to sell, exchange, assign, transfer or
otherwisedisposeoftheMIPRestrictedStockandtheMIPRestrictedStockwillbesubjecttoforfeitureassetforthbelow.
(A)TheRestrictionsshalllapseandbeofnofurtherforceoreffectontheearlierofthedate(1)thereisapayout
under the Profit Sharing Program unless, prior to such payout, the Executive Officer Participant incurs a Disqualifying
Terminationof Employmentor (2)an ExecutiveOfficer Participant incurs a Qualifying Termination of Employment. The
MIP Restricted Stock will be immediately forfeited if, prior to the lapsing of the Restrictions, the Executive Officer
ParticipantincursaDisqualifyingTerminationofEmployment.
(B) “ Disqualifying Termination of Employment ” means an Executive Officer Participant’s Termination of
EmploymentbytheCompanyforCause.
2Ifthisformularesultsinanyfractionalshare,theMIPRestrictedStockwillberoundeduptothenexthighesttenshares.
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