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Exhibit 10.4

ALASKA AIR GROUP, INC.

2008 PERFORMANCE INCENTIVE PLAN

DIRECTOR DEFERRED STOCK UNIT AWARD AGREEMENT

THIS DIRECTOR DEFERRED STOCK UNIT AWARD AGREEMENT (this “ Agreement ”) dated              , by and between ALASKA AIR GROUP, INC. , a Delaware corporation (the “ Corporation ”), and              (the “ Director ”) evidences the award of stock units (the “Award” ) granted by the Corporation to the Director as to the number of stock units (the “ Stock Units ”) first set forth below.

 

Number of Stock Units 1 :   Award Date:

Vesting The Stock Units shall be considered one hundred percent (100%) vested at all times.

The Award is granted under the Alaska Air Group, Inc. 2008 Performance Incentive Plan (the “ Plan ”) and subject to the Terms and Conditions of Director Deferred Stock Unit Award (the “ Terms ”) attached to this Agreement (incorporated herein by this reference) and to the Plan. The Award has been granted to the Director in addition to, and not in lieu of, any other form of compensation otherwise payable or to be paid to the Director. Capitalized terms are defined in the Plan if not defined herein. The parties agree to the terms of the Award set forth herein. The Director acknowledges receipt of a copy of the Terms, the Plan and the Prospectus for the Plan.

 

DIRECTOR    

ALASKA AIR GROUP, INC.

a Delaware corporation

      By:    
        William S. Ayer
        Chairman, President and CEO

CONSENT OF SPOUSE

In consideration of the Corporation’s execution of this Agreement, the undersigned spouse of the Director agrees to be bound by all of the terms and provisions hereof and of the Plan.

 

Signature of Spouse:     Date:
           

 

1

Subject to adjustment under Section 7.1 of the Plan.

 


TERMS AND CONDITIONS OF DIRECTOR DEFERRED STOCK UNIT AWARD

1. Stock Units . As used herein, the term “stock unit” shall mean a non-voting unit of measurement which is deemed for bookkeeping purposes to be equivalent to one outstanding share of the Corporation’s Common Stock (subject to a


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