1.01. Entry into a Material Definitive
February 22, 2006, the U.S. Bankruptcy Court in the Delta Air Lines, Inc.
(“Delta”) chapter 11 case authorized and approved the Delta Director and Officer
Severance Plan (the “Severance Plan”).
to the terms of the Severance Plan, any employee classified as a Corporate
Director or Officer of Delta or any officer of Delta AirElite Business Jets,
Inc. or Delta Connection Academy, Inc. is eligible to be offered participation
in the plan, provided,
current Chief Executive Officer, Gerald Grinstein, and Delta’s current Chief
Operating Officer, James M. Whitehurst, at their request, are not eligible
participate in the Severance Plan. In order to participate in the Severance
Plan, an employee must fully relinquish and release all rights to any benefits
under any other severance arrangement in place as of the effective date of
event of a qualifying termination of employment under the Severance Plan,
eligible participant will receive, subject to the participant’s completion of a
separation agreement and general release, a severance payment that varies
according to his or her employment level. Executive Vice Presidents and Chief
Officers of Delta or the equivalent level employee at a subsidiary will receive
12 months’ base salary; Vice Presidents and Senior Vice Presidents of Delta or
the equivalent level employee at a subsidiary will receive 9 months’ base
salary; Directors of Delta or the equivalent level employee at a subsidiary
receive 6 months’ base salary. Subject to the terms of the Severance Plan, the
cash severance amount will be paid in a lump-sum following termination of
employment. Participants will also be eligible for certain medical and dental
insurance premiums paid by Delta, continuation of basic life insurance, travel
privileges and financial assistance and outplacement services, each as described
in the Severance Plan.
Severance Plan is filed with this report as Exhibit 10.1 and its contents
incorporated by reference into this Item 1.01.
9.01 Financial Statements and Exhibits.
Lines, Inc. Director and Officer Severance Plan