Document:

exv10w2

 

Exhibit 10.2

BY HAND DELIVERY

January 24, 2007

Aslam Malik

President, AMPAC FINE CHEMICALS LLC

Notice of Eligibility

AMPAC FINE CHEMICALS LLC SEVERANCE PAY PLAN

Dear Aslam:

     This letter is your Notice of Eligibility in accordance with Section 2.3 of the Ampac Fine
Chemicals LLC Severance Pay Plan (the “Plan”). A copy of the Plan is enclosed with this letter.
In order to become eligible for the benefits described in this Notice of Eligibility, you must
execute and return a copy of (i) this letter, within fifteen (15) days of the date of this letter
and (ii) the General Release, attached to this letter as Exhibit A, after your termination of
employment. All provisions of this letter are subject to and governed by the terms of the Plan.

     1. Covered Employee. In accordance with Section 3 of the Plan you are a Covered Employee
under the Plan.

     2. Severance Benefit. Provided all other requirements under the Plan and this Notice of
Eligibility are met, your Severance Benefit under Section 4.1 of the Plan shall be as follows:

     (a) The Company will make monthly payments to you equal to your regular straight-time
salary in effect at your Eligible Termination Date for 24 months, subject to standard
payroll deductions and withholdings, payable beginning within fourteen (14) days after the
“Effective Date” (see paragraph 2 of the General Release (Exhibit A));

     (b) The Company will reimburse your COBRA premiums on your current health care
coverage for a period of six months, provided that you provide evidence satisfactory to the
Administrator (American Pacific Corporation) that you have elected COBRA coverage and made
the payment for which you are seeking reimbursement;

 

 

     (c) If your employment is terminated after you have been employed for at least six
months in a fiscal year, you shall be entitled to a portion of your bonus pursuant to the
bonus plan in effect for such year that applies to you (the “Bonus Plan”) equal to the
bonus you would otherwise be entitled to times the number of weeks you were employed during
that fiscal year divided by 52, which shall be payable at the time normally payable under
the Bonus Plan; and

     (d) Provided, however, that any payments to a specified employee1 at the
time that American Pacific Corporation or any member of its controlled group under Code
Sections 414(b) or (c), is a publicly traded company, will commence on the first business
day of the seventh (7th) month following termination of employment; the first
payment shall consist of a lump sum of all payments otherwise payable under subsections
(a), (b) and (c) by that date.

     3. Other Compensation or Benefits. You acknowledge that, except as expressly provided in this
Notice of Eligibility, you will not receive any additional compensation, separation payments or
benefits from the Company.

     4. General Release. In exchange for the payments and other benefits under this Notice of
Eligibility, you agree to execute the General Release attached hereto as Exhibit A after your
termination of employment, and to be bound by such General Release.

     5. No Re-employment. You acknowledge that you are not entitled to re-employment with the
Company, and you agree that you will not seek and/or accept re-employment or any consulting work
with the Company or any of its subsidiaries, parents, affiliates or related companies at any time.

     6. Confidentiality: The existence of and provisions of this Notice of Eligibility shall be
held in strictest confidence by you and shall not be publicized or disclosed in any manner
whatsoever, including but not limited to any reference to its existence, meaning, importance, value
or comparative value; provided, however, you may disclose this Notice of Eligibility to your
spouse, attorney, accountant, tax preparer, and financial advisor, and you may also disclose this
Notice of Eligibility insofar as such disclosure is required by law. You specifically agree that
your obligation to maintain the confidentiality of this Notice of Eligibility is a material term of
this Notice of Eligibility without which the Company would not have entered into this Notice of
Eligibility. Therefore, you agree that any violation of the terms of this provision will obligate
you to refund the value of all benefits granted to you pursuant to this Notice of Eligibility.
Nothing in this paragraph shall prejudice the Company’s ability to recover damages for the breach
of any other provision of this Notice of Eligibility.

 

			
	1	 	As defined by Section 409A of the Internal
Revenue Code, the regulations thereunder, and any other published interpretive
authority, as issued or amended from time to time.

 

 

     7. Nondisparagement. You hereby agree not to engage in any conduct or communication,
either personally or through agents, whether verbal or written, which is injurious to the Company’s
good business reputation.

     8. Miscellaneous. This Notice of Eligibility, including Exhibit A, constitutes the complete,
final and exclusive embodiment of the entire agreement between you and the Company with regard to
its subject matter. It is entered into without reliance on any promise or representation, written
or oral, other than those expressly contained herein, and it supersedes any other such promises,
warranties or representations. This Notice of Eligibility may not be modified or amended except in
a writing signed by both you and a duly authorized officer of the Company. This Notice of
Eligibility shall be binding upon you and the Company and the respective heirs, personal
representatives, successors and assigns of you and the Company, but neither this Notice of
Eligibility nor any rights hereunder shall be assignable by you without the written consent of the
Company. If any provision of this Notice of Eligibility is held to be invalid, void, or
unenforceable, the remaining provisions shall remain in full force and effect. In the event that a
dispute arises concerning the interpretation or enforcement of this Notice of Eligibility, or any
other related matter, you agree that any such dispute shall be submitted to binding arbitration
before the Clark County office of JAMS/Endispute or its successor, under the rules of
JAMS/Endispute then in effect for resolution of contract disputes. This agreement shall be
construed according to the laws of the State of Nevada.

     If this Notice of Eligibility is acceptable to you, please sign and date the enclosed copy of
this Notice of Eligibility in the space provided, and return to me within fifteen (15) days of the
date of this letter.

	 	 	 	 	 
	Sincerely,	 	 
	AMPAC FINE CHEMICALS LLC	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Ampac Fine Chemicals LLC Officer
	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	AMERICAN PACIFIC CORPORATION	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

American Pacific Corporation Officer
	 	 

 

 

Exhibit A – General Release

     By my signature below, I acknowledge that I have carefully reviewed and considered this Notice
of Eligibility; that I understand the terms of the Notice of Eligibility; and that I voluntarily
agree to them.

	 	 	 	 	 
	 	 	 
	Aslam Malik	 	 
	 
	 	 	 	 
	Date:
	 	 	 	 
	 

	 	 

	 	 

 

 

EXHIBIT A

GENERAL RELEASE

     1. I hereby release, acquit and forever discharge Ampac Fine Chemicals LLC (the “Company”),
its parent, subsidiaries and affiliates, and their officers, directors, employees and agents, and
all others, of and from any and all claims, liabilities, demands, causes of action, costs,
expenses, or otherwise, known and unknown, suspected and unsuspected, disclosed and undisclosed,
arising out of or in any way related to agreements, events, acts or conduct at any time prior to
and including the date of this release, including but not limited to all claims or demands directly
or indirectly arising out of or in any way connected with my employment, benefits, and/or
compensation with the Company, or the termination of my employment (other than any benefits I am
entitled to after my termination of employment under the terms of any employee benefit plan
sponsored by the Company or any of its affiliates), including but not limited to common law claims
and/or claims under Title VII of the Civil Rights Act of 1964, the Federal Age Discrimination in
Employment Act of 1967, as amended (“ADEA”), the Americans with Disabilities Act, the California
Fair Employment and Housing Act, and/or any other federal, state, or local statute.

     2. I acknowledge that I am knowingly and voluntarily waiving and releasing any rights I may
have under the ADEA. I also acknowledge that the consideration given for the waiver and release in
the preceding paragraph hereof is in addition to anything of value to which I was already entitled.
I acknowledge that this Agreement and General Release is written in a manner calculated to be
understood by me. I further acknowledge that I have been advised by this writing, as required by
the ADEA and the Older Workers Benefit Protection Act, that: (a) my waiver and release do not
apply to any rights or claims that may arise after the execution of this release; (b) I should
consult with an attorney prior to executing this release; (c) I have twenty-one (21) days to
consider this release (although I may choose to voluntarily execute this release earlier); (d) I
have seven (7) days following the execution of this release to revoke the release; and (e) this
release shall not be effective until the revocation period has expired, i.e., as of the eighth day
after this release is executed by me (the “Effective Date”).

     3. In giving this release, which includes claims which may be unknown to me at present, I
acknowledge that I have read and understand Section 1542 of the California Civil Code which reads
as follows: “A general release does not extend to claims which the creditor does not know or
suspect to exist in his favor at the time of executing the release, which if known by him must have
materially affected his settlement with the debtor.” I hereby expressly waive and relinquish all
rights and benefits under that section.

	 	 	 	 	 
	 
	 	 	 	 
	 	 	 
	Signature of Employee	 	 
	 
	 	 	 	 
	Date:exv10w1

 

Exhibit 10.1

AMENDMENT NUMBER ONE to

DELTA CONNECTION

AGREEMENT

          This Amendment Number One (this “Amendment”), dated as of the 13th day of March, 2007, to
the Delta Connection Agreement dated and effective May 3, 2005 (the “Agreement”), is among
Delta Air Lines, Inc., 1030 Delta Boulevard, Atlanta, Georgia 30320 (“Delta”), Freedom
Airlines, Inc. (“Operator”), a wholly-owned subsidiary of Mesa Air Group, Inc. holding a
certificate of Public Convenience and Necessity issued by the Federal Aviation Administration
(“FAA”), whose principal address is 410 North 44th Street, Suite 700, Phoenix,
Arizona 85008 and Mesa Air Group, Inc. (“Parent”), parent company and sole shareholder of
Operator, whose principal address is 410 North 44th Street, Suite 700, Phoenix,
Arizona 85008.

          WHEREAS, Delta, Operator and Parent are parties to the Agreement; and

          WHEREAS, the parties desire to amend the Agreement to temporarily add an additional six
(6) Embraer ERJ 145 aircraft to the Aircraft to be operated by Operator pursuant to the terms
of the Agreement; and

          WHEREAS, the parties desire to amend the Agreement to permanently remove eight (8)
Embraer ERJ 145 aircraft from the Aircraft operated by Operator pursuant to the terms of the
Agreement.

          NOW, THEREFORE, for and in consideration of the mutual undertakings set forth herein and
other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, Delta, Operator and Parent, intending to be legally bound, hereby agree as
follows:

	1.	 	Defined Terms. All terms capitalized used, but not defined, herein shall have the
meaning ascribed to such terms in the Agreement.
	 
	2.	 	Temporary Addition of Six Aircraft.

A. Commencing in March 2007 (the “Commencement Date”), six (6) “white tailed” ERJ145
aircraft (the “Temporary Additional Aircraft”) shall be added to the scope of the Agreement
as “Aircraft” in accordance with the in-service dates set forth on Appendix 1
attached hereto and incorporated herein; provided, however, such Temporary
Additional Aircraft shall only be within the scope of the Agreement and operate Delta
Connection Flights for a period of two (2) years beginning on the Commencement Date (the
“Initial Term”), provided, further, that Operator shall have the right (the
“Extension Option”) to extend the Initial Term for an additional 12-month period (the
“Extension Term”),

 

 

subject to the terms and conditions hereof, by providing Delta with written notice at least one
hundred eighty (180) days prior to the expiration of the Initial Term.

B. If Operator affirmatively exercises the Extension Option, during the Extension Term
Operator shall only be compensated for the Direct Costs as relates to the operation of the
Temporary Additional Aircraft and shall not be entitled to any Base Mark-Up, Monthly
Incentive Compensation or Semi-Annual Incentive Compensation in connection therewith. In
addition, during the Extension Term, the Delta Connection Flights operated with the
Temporary Additional Aircraft shall not be included in Operator’s calculation of the Actual
Margin pursuant to Section 3(F) of the Agreement.

C. Operator and Parent, jointly and severally, represent and warrant to Delta that the
Temporary Additional Aircraft have been maintained in accordance with Operator’s FAA
approved maintenance program, and are fully operable, are able to begin operating under the
terms of the Agreement as amended hereby, and are not subject to any unusual or
extraordinary repair or maintenance requirements.

D. Delta shall compensate Operator for operating the Temporary Additional Aircraft pursuant
to the terms and conditions of the Agreement.

	3.	 	Restatement of Term and Removal of Eight Aircraft.

A. The first sentence of Section 11(A) of the Agreement is hereby deleted in its entirety
and replaced with the following sentence:

This Agreement is effective as of the Effective Date and shall terminate on the
twelfth (12th) anniversary of the Effective Date (such period, and any
extension or renewal thereof, the “Term”) unless terminated earlier in accordance
with the terms of this Agreement or the mutual agreement of the parties.

B. Commencing in August 2008 with three (3) Aircraft and proceeding at the rate of three
(3) Aircraft per month thereafter, a total of eight (8) of the original thirty (30) Aircraft
shall be removed from the scope of the Agreement.

	4.	 	Bankruptcy Proceedings.

A. Delta is a debtor and debtor-in-possession in a case filed pursuant to Chapter 11 of the
United States Bankruptcy Code (the “Bankruptcy Code”) in the Bankruptcy Court (the “Delta
Case”), which is jointly administered by the Bankruptcy Court along with the Chapter 11
cases of certain of Delta’s subsidiaries (together with Delta, the “Debtors”). Parent
and/or Operator (collectively, the “Company”) asserts that it has or will have a claim or
claims in the Delta Case for pre-petition debt, including without limitation (a) claims
arising out of or relating in any way to the Agreement as amended by this
Amendment, and (b) claims included in any proof of claim filed by Company in the Delta

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Case (the “Claim”). In connection therewith, Delta and the Company further agree as follows:

(1) Upon Delta’s assumption of the Agreement as amended by this Amendment, the
parties agree as follows: The value of the Claim is Thirty-Five Million and 00/100
Dollars ($35,000,000.00) (the “Liquidated Claim Amount”) notwithstanding anything to
the contrary in any proof of claim filed by Company. In full and final satisfaction
of the Claim, the Liquidated Claim Amount will be allowed as a general unsecured
pre-petition claim in the Delta Case, and the Debtors will not contest the
Liquidated Claim Amount. If a proof of claim has been filed or is subsequently
filed by Company, Company agrees that Delta may object to any amount claimed in
excess of the Liquidated Claim Amount. Company shall not contest any such objection
or the Bankruptcy Court’s disallowance of the excess claim amount. It is expressly
understood and agreed by Company that Company may seek satisfaction of the Claim
only as set forth in this paragraph, and that in no event will the Debtors, their
estates or any persons who are employed or otherwise associated with the Debtors be
liable to Company in any other way whatsoever with respect to the Claim.

(2) Upon Delta’s assumption of the Agreement as amended by this Amendment, Delta’s
obligation to (a) cure any existing default or loss to Company under the Agreement,
or (b) take any other action required under the Bankruptcy Code as a condition
precedent to the assumption of contracts, shall each be deemed to have been
satisfied in full.

(3) Notwithstanding anything herein to the contrary, the limitations in
sub-paragraphs 4.A.(1) and 4.A.(2) of this Amendment will not prevent the Company
from additionally being permitted to assert a claim for, and being paid on such
claim if successful in its assertion, as an expense of administration, (a) any
amounts that accrue or have accrued post-petition in the ordinary course under the
Agreement, or (b) any amounts it may become owed as an administrative claim by
reason of any post-assumption rejection or breach of the Agreement.

B. Company consents to Delta’s assignment of the Agreement and that certain Delta Connection
Agreement of even date herewith by and among Delta, Operator and Parent (the “CRJ900 Delta
Connection Agreement”) (including any applicable licenses therein) to the reorganized entity
upon Delta’s assumption of the Agreement.

C. Company shall affirmatively support, in a manner not inconsistent with the Bankruptcy
Code, including, without limitation, section 1125 of the Bankruptcy Code, Delta’s
restructuring activities and its chapter 11 plan of reorganization in connection with the
implementation of this Amendment. In furtherance of the above, Company shall not assign,
offer, sell, contract to sell, sell any option or contract to purchase, grant any option,
right or warrant to purchase, lend, pledge or hypothecate or otherwise transfer or dispose
of, directly or indirectly, the Claim or any portion thereof.

3

 

	5.	 	Reimbursement Agreement.

A. Each of the parties hereto acknowledges and agrees that the certain Reimbursement
Agreement dated and effective as of May 3, 2005 by and among Delta, Operator and Parent (the
“Reimbursement Agreement”) is hereby terminated and of no further force and effect with no
liability thereunder owing from any party thereto to any other party thereto.

B. As a result of the termination of the Reimbursement Agreement, (i) the text of Section
11(D)(2) of the Agreement is hereby deleted in its entirety and replaced with the words
“[Intentionally Omitted.]” and (ii) the words “, together with the Reimbursement Agreement,”
are hereby deleted from Section 20(D) of the Agreement.

6. Conditions to Effectiveness. The effectiveness of this Amendment shall be subject to
and conditioned upon the United States Bankruptcy Court for the Southern District of New York,
which is administering Delta’s case under Chapter 11 Case No. 05-17923 (ASH), (the “Bankruptcy
Court”) having entered one or more orders (collectively, the “Approval Order”)
authorizing Delta to assume the Agreement as amended by this Amendment and perform its obligations
and exercise its rights under the Agreement and the CRJ900 Delta Connection Agreement and to
execute and deliver the other instruments and documents contemplated hereby and to perform its
obligations and consummate the transactions contemplated hereby and thereby. Any motion for
rehearing or reconsideration of the Approval Order shall have been denied. If the Approval Order
shall have been appealed, either (i) no stay of the Approval Order shall be in effect or (ii) if
such a stay has been granted by a court of competent jurisdiction, then (x) the stay shall have
been dissolved or (y) a final order of a court having jurisdiction to hear such appeal shall have
affirmed the Approval Order and the time allowed to appeal from such affirmance or to seek review
or rehearing thereof shall have expired and no further hearing, appeal or petition for certiorari
can be taken or granted.

	 	 	7. Miscellaneous.

	 	A.	 	This Amendment, together with the Appendices attached hereto, and the CRJ900
Delta Connection Agreement constitute the entire understanding of the parties with
respect to the subject matter hereof, and any other prior or contemporaneous
agreements, whether written or oral, are expressly superseded hereby.
	 
	 	B.	 	The Amendment may be executed in any number of counterparts, each of which
shall be deemed an original and all of which, taken together, shall constitute one and
the same instrument.
	 
	 	C.	 	Except as specifically stated herein, all other terms and conditions of the
Agreement shall remain in full force and effect.

{signatures on following page}

4

 

     IN WITNESS WHEREOF, the parties have executed this Amendment by their undersigned duly
authorized representatives:

	 	 	 	 	 	 	 	 	 	 	 
	Mesa Air Group, Inc.

	 	 	 	 	 	Delta Air Lines, Inc. 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	 	 	By:	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	Name:

	 	 	 	 	 	 	 	Name:	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	Title:

	 	 	 	 	 	 	 	Title:	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Freedom Airlines, Inc.	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	Name:
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	Title:
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 

5

 

APPENDIX 1

IN-SERVICE SCHEDULE

	 	 	 	 	 
	In-Service Date	 	Number of Aircraft
	March 7, 2007

	 	 	1	 
	 
	 	 	 	 
	May 20, 2007

	 	 	2	 
	 
	 	 	 	 
	August, 15, 2007

	 	 	1	 
	 
	 	 	 	 
	August 23, 2007

	 	 	2	 

6

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