Hawker Beechcraft Corporation Retirement Income Plan for Salaried Employees



 Exhibit 10.18 
 HAWKER BEECHCRAFT CORPORATION 
 RETIREMENT INCOME PLAN 
 FOR 
 SALARIED EMPLOYEES

 Provisions in Effect as of 
 March 26, 2007 
 (As Amended March 26, 2007) 
  








 HAWKER BEECHCRAFT CORPORATION 
 RETIREMENT INCOME PLAN 
 FOR SALARIED EMPLOYEES 
 TABLE OF CONTENTS 
  

							
	INTRODUCTION	  	1
		
	ARTICLE 1 DEFINITIONS	  	2
		  	1.01	  	“Accrued Benefit”	  	2
		  	1.02	  	“Active Employment”	  	2
		  	1.03	  	“Active Participant”	  	2
		  	1.04	  	“Actuarial Equivalent”	  	2
		  	1.05	  	“Actuarial Equivalent Value”	  	2
		  	1.06	  	“Actuary”	  	2
		  	1.07	  	“Adjustment Factor”	  	2
		  	1.08	  	“Affiliated Employer”	  	2
		  	1.09	  	“Beneficiary”	  	3
		  	1.10	  	“Benefit Commencement Date”	  	3
		  	1.11	  	“Board” or “Board of Directors”	  	3
		  	1.12	  	“Break in Employment”	  	3
		  	1.13	  	“Code”	  	3
		  	1.14	  	“Committee”	  	3
		  	1.15	  	“Compensation”	  	3
		  	1.16	  	“Credited Service”	  	3
		  	1.17	  	“Deferred Vested Benefit”	  	3
		  	1.18	  	“Defined Benefit Dollar Limitation”	  	4
		  	1.19	  	“Disability Retirement Benefit”	  	4
		  	1.20	  	“Early Retirement Benefit”	  	4
		  	1.21	  	“Early Retirement Date”	  	4
		  	1.22	  	“Effective Date”	  	4
		  	1.23	  	“Effective Date of this Restatement”	  	4
		  	1.24	  	“Eligible Employee”	  	4
		  	1.25	  	“Eligibility Service”	  	4
		  	1.26	  	“Employee”	  	4
		  	1.27	  	“Employer”	  	5
		  	1.28	  	“Employment Commencement Date”	  	5
		  	1.29	  	“ERISA”	  	5
		  	1.30	  	“Estimated Primary Social Security Benefit”	  	5
		  	1.31	  	“Final Average Earnings”	  	6
		  	1.32	  	“Fund”	  	7
		  	1.33	  	“Funding Agent”	  	7
		  	1.34	  	“Highly Compensated Employee” and “Highly Compensated Former Employee”	  	7
		  	1.35	  	“Hour of Service”	  	7
		  	1.36	  	“Joint Annuitant”	  	8
		  	1.37	  	“Joint and Two-Thirds to Survivor Annuity”	  	8
		  	1.38	  	“Leased Employee”	  	8

  

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		  	1.39	  	“Loss of Seniority”	  	8
		  	1.40	  	“Limitation Year”	  	9
		  	1.41	  	“Monthly Earnings”	  	9
		  	1.42	  	“Named Fiduciary”	  	10
		  	1.43	  	“Normal Retirement Age”	  	10
		  	1.44	  	“Normal Retirement Benefit”	  	10
		  	1.45	  	“Normal Retirement Date”	  	10
		  	1.46	  	“Participant”	  	11
		  	1.47	  	“Participating Employer”	  	11
		  	1.48	  	“Participation”	  	12
		  	1.49	  	“Period of Service”	  	12
		  	1.50	  	“Period of Severance”	  	12
		  	1.51	  	“Plan”	  	13
		  	1.52	  	“Plan Sponsor”	  	13
		  	1.53	  	“Plan Year”	  	13
		  	1.54	  	“Postponed Retirement Benefit”	  	13
		  	1.55	  	“Postponed Retirement Date”	  	13
		  	1.56	  	“Predecessor Employer”	  	13
		  	1.57	  	“Predecessor to this Plan”	  	13
		  	1.58	  	“Qualified Joint and Survivor Annuity”	  	13
		  	1.59	  	“Reemployment Commencement Date”	  	14
		  	1.60	  	“Retirement Date”	  	14
		  	1.61	  	“Salaried Plan Employee”	  	14
		  	1.62	  	“Severance from Service Date”	  	15
		  	1.63	  	“Social Security Adjustment”	  	16
		  	1.64	  	“Termination”	  	16
		  	1.65	  	“Termination Date”	  	16
		  	1.66	  	“Total and Permanent Disability”	  	16
		  	1.67	  	“Trust”	  	17
		  	1.68	  	“Trustee”	  	17
		  	1.69	  	“Vesting Service”	  	17
		
	ARTICLE 2 SERVICE COUNTING RULES	  	18
		  	2.01	  	Period of Service	  	18
		  	2.02	  	Active Employment	  	19
		  	2.03	  	Eligibility Service	  	20
		  	2.04	  	Vesting Service	  	20
		  	2.05	  	Credited Service	  	21
		  	2.06	  	Pre-Break Service - General Rule	  	21
		  	2.07	  	Special Rules Relating to Qualified Military Service	  	22
		
	ARTICLE 3 ELIGIBILITY FOR PARTICIPATION AND TRANSFERS	  	23
		  	3.01	  	Eligibility to Become a Participant	  	23
		  	3.02	  	Reemployment	  	23
		  	3.03	  	Termination of Participation	  	23
		  	3.04	  	Transfer to Another Plan	  	23
		  	3.05	  	Transfer from Another Plan: Prohibition of Double Counting	  	23
		  	3.06	  	Coordination with Raytheon Company Pension Plan for Salaried Employees	  	24

  

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	ARTICLE 4 RETIREMENT ELIGIBILITY AND SUSPENSION OF BENEFITS	  	25
		  	4.01	  	Retirement	  	25
		  	4.02	  	Suspension of Benefits - Postponed Retirement	  	25
		  	4.03	  	Suspension of Benefits - Rehires	  	25
		  	4.04	  	Suspension of Benefit Notice	  	25
		  	4.05	  	Section 203(a)(3)(B) Service	  	26
		  	4.06	  	Recommencement of Benefits	  	26
		  	4.07	  	Required Commencement at Age 70  1/2	  	26
		  	4.08	  	Required Commencement - Conditions	  	27
		
	ARTICLE 5 AMOUNT OF RETIREMENT BENEFIT	  	28
		  	5.01	  	Accrued Benefit	  	28
		  	5.02	  	Normal Retirement Benefit	  	29
		  	5.03	  	Postponed Retirement Benefit	  	29
		  	5.04	  	Early Retirement Benefit	  	29
		  	5.05	  	Deferred Vested Benefit and Deferred Vested Benefit-Early Commencement	  	30
		  	5.06	  	Adjustment for Suspension of Benefits	  	30
		  	5.07	  	Disability Retirement Benefit	  	30
		  	5.08	  	Adjustment for Participants Receiving LTD Benefits	  	32
		  	5.09	  	Cessation and Restoration of Accrued Benefits for Highly Compensated Employees	  	33
		  	5.10	  	Commencement of Benefit Payments	  	34
		
	ARTICLE 6 REQUIRED BENEFIT LIMITATIONS	  	35
		  	6.01	  	Code Section 415 Limits	  	35
		  	6.02	  	Restrictions on Twenty-Five Highest Paid Employees	  	40
		
	ARTICLE 7 VESTING	  	41
		  	7.01	  	General Rule	  	41
		  	7.02	  	Vesting at Normal Retirement Age	  	41
		  	7.03	  	Vesting after Five Years of Vesting Service	  	41
		  	7.04	  	Vesting for Non-Work-Related Disability	  	41
		  	7.05	  	Vesting Upon Plan Termination	  	41
		
	ARTICLE 8 PRERETIREMENT SURVIVOR BENEFITS	  	42
		  	8.01	  	Automatic Preretirement Spousal Death Benefit	  	42
		  	8.02	  	Death After Normal Retirement Date	  	43
		  	8.03	  	Additional Optional Death Benefit	  	44
		  	8.04	  	Limitation on Total Benefit	  	45
		
	ARTICLE 9 FORMS OF BENEFIT	  	47
		  	9.01	  	Qualified Joint and Survivor Annuity	  	47
		  	9.02	  	Lump Sum Payments	  	47
		  	9.03	  	Right to Elect	  	48
		  	9.04	  	Election of Forms	  	48
		  	9.05	  	Optional Forms of Retirement Benefit	  	49
		  	9.06	  	Beneficiary	  	51
		  	9.07	  	Eligible Rollover Distributions	  	51

  

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	ARTICLE 10 FUNDING	  	53
		  	10.01	  	Funding Agreement	  	53
		  	10.02	  	Non-Diversion of the Fund	  	53
		
	ARTICLE 11 PLAN ADMINISTRATION	  	54
		  	11.01	  	Appointment of Committee	  	54
		  	11.02	  	Powers and Duties	  	54
		  	11.03	  	Actions by the Committee	  	55
		  	11.04	  	Interested Committee Members	  	55
		  	11.05	  	Indemnification	  	56
		  	11.06	  	Conclusiveness of Action	  	56
		  	11.07	  	Payment of Expenses	  	56
		  	11.08	  	Claim Procedure	  	56
		
	ARTICLE 12 FUNDING POLICY AND CONTRIBUTIONS	  	58
		  	12.01	  	Employer Contributions	  	58
		  	12.02	  	Participant Contributions	  	58
		  	12.03	  	Contingent Nature of Contributions	  	58
		
	ARTICLE 13 AMENDMENT, TERMINATION AND MERGER OF THE PLAN	  	59
		  	13.01	  	Right to Amend the Plan	  	59
		  	13.02	  	Right to Terminate the Plan	  	59
		  	13.03	  	Allocation of Assets and Surplus	  	60
		  	13.04	  	Plan Mergers, Consolidations and Transfers	  	60
		  	13.05	  	Amendment of Vesting Schedule	  	61
		
	ARTICLE 14 TOP-HEAVY PLAN PROVISIONS	  	62
		  	14.01	  	General Rule	  	62
		  	14.02	  	Vesting Provision	  	62
		  	14.03	  	Minimum Benefit Provision	  	62
		  	14.04	  	Change in 415(e) Limits	  	63
		  	14.05	  	Coordination with Other Plans	  	63
		  	14.06	  	Top-Heavy and Super Top-Heavy Plan Definition	  	63
		  	14.07	  	Key Employee	  	66
		  	14.08	  	Non-Key Employee	  	67
		  	14.09	  	Collective Bargaining Rules	  	67
		
	ARTICLE 15 MISCELLANEOUS	  	68
		  	15.01	  	Limitation on Distributions	  	68
		  	15.02	  	Limitation on Reversion of Contributions	  	68
		  	15.03	  	Voluntary Plan	  	68
		  	15.04	  	Nonalienation of Benefits	  	69
		  	15.05	  	Inability to Receive Benefits	  	69
		  	15.06	  	Missing Persons	  	69
		  	15.07	  	Limitation of Third Party Rights	  	70
		  	15.08	  	Invalid Provisions	  	70
		  	15.09	  	One Plan	  	70
		  	15.10	  	Use and Form of Words	  	70
		  	15.11	  	Headings	  	70

  

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		  	15.12	  	Governing Law	  	71
		
	ARTICLE 16 SPECIAL ELIGIBILITY RULES	  	72
		  	16.1  	  	Applicability	  	72
		  	16.2  	  	Special Eligibility Rules	  	72
		  	16.3  	  	Definitions 	  	72
		  	16.4  	  	Pension Plan Distributee	  	73


							
				
	APPENDIX A	 		 	Procedures For Calculation Of Actuarial Equivalent Values	  	A-1
				
	APPENDIX B	 		 	Reduction Factors For Additional Optional Death Benefit Under Section 8.03	  	B-1
				
	SUPPLEMENT A	 		 	Special Provisions Applicable to Former Hangar One, Inc. Salaried Employees	  	Suppl. A-1

  

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 INTRODUCTION 
 The Hawker Beechcraft Corporation Retirement Income Plan For Salaried Employees (the “Plan”) as stated herein is an amendment and restatement of the most recently amended and restated version of the Plan
that was generally effective as of January 1, 1989 (the “Prior Plan”). This amendment and restatement of the Plan is generally effective as of January 1, 1997, or such other dates as may be specifically provided herein or as
otherwise required by law for the Plan to satisfy the requirements of Section 401 (a) of the Code. 
 The provisions of this plan
supersede the Prior Plan provisions for all persons in the employment of the Employer or any Affiliated Employer at any time on or after the Effective Date of this restatement and of all persons claiming through, under or against such persons. The
provisions of the Plan as in effect immediately prior to the Effective Date of this restatement shall govern Participants who ceased to be employed, by retirement or otherwise, prior to the Effective Date of this restatement and of all persons
claiming through, under or against such Participants. The preceding sentence shall not apply to the extent that applying the provisions of the Plan as in effect immediately prior to the Effective Date of this restatement to such Participants would
violate the “Employee Retirement Income Security Act of 1974” (ERISA), or any other applicable law, would result in disqualification of this Plan, or would require inconsistent administrative practices, in which case the provisions of this
Plan shall apply. 
 The provisions of the Plan are subject to a determination by the Internal Revenue Service that the Plan is
“qualified” under Section 401(a) of the Code. It is further intended that the Plan also conform to the requirements of Title I of ERISA, as amended from time to time. 
 See Article 16 for provisions that preclude from participation employees who first perform an Hour of Service on or after January 1, 2007, and
employees who performed an Hour of Service before January 1, 2007, incur a Separation from Service, and next perform an Hour of Service on or after January 1, 2007. 
  

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 ARTICLE 1 
 Definitions 
  

	1.01	“Accrued Benefit” 

 shall mean the amount of
monthly pension benefit, payable as a straight life annuity, commencing at Normal Retirement Age, as shall be considered accrued at any time for a Participant in accordance with the provisions of Article 5. 
  

	1.02	“Active Employment” 

 shall mean the period of
service defined in Sections 2.02 and 2.07. 
  

	1.03	“Active Participant” 

 means a Participant still
actively employed as an Eligible Employee. 
  

	1.04	“Actuarial Equivalent” 

 shall mean a benefit or
amount having the same Actuarial Equivalent Value as an Accrued Benefit or other applicable benefit. 
  

	1.05	“Actuarial Equivalent Value” 

 shall mean the
single sum present value of an Accrued Benefit or other applicable benefit, where values are calculated under generally accepted actuarial methods and using the applicable tables, interest rates and other factors described in Appendix A of this
Plan. 
  

	1.06	“Actuary” 

 shall mean that individual who is an
“enrolled actuary” as defined in Section 7701(a)(35) of the Code or that firm of actuaries which has on its staff such an actuary, appointed by the Committee. 
  

	1.07	“Adjustment Factor” 

 shall mean the cost of
living adjustment factor prescribed by the Secretary of the Treasury under Section 415(d) of the Code for years beginning after December 31, 1987, applied to such items and in such manner as the Secretary shall prescribe. 
  

	1.08	“Affiliated Employer” 

 shall mean Raytheon
Aircraft Company (prior to October 24, 1994 called Beech Aircraft Corporation) and any of its subsidiaries or affiliates, whether or not such entities have adopted the Plan, and Raytheon Company or any other entity while it is a member of a
“controlled group of corporations,” a group under “common control,” or an “affiliated service group,” all as determined under Code Sections 414(b), (c), (m), (o), or, solely for purposes of Section 6.01, the rules
set forth in Code Section 415(h). Raytheon Company ceased to be an Affiliated Employer upon the closing of the divestiture of Raytheon Aircraft Company by Raytheon Company on March 26, 2007. 
  

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	1.09	“Beneficiary” 

 shall mean that person or persons
or entity or entities (including a trust) or estate that shall be entitled to receive benefits payable pursuant to the provisions of this Plan by virtue of a Participant’s death, pursuant to the provisions of Articles 8 and 9. 
  

	1.10	“Benefit Commencement Date” 

 shall mean the
first day of the first period (e.g. month, quarter, year) for which a benefit is payable to an individual, even though the first payment may not actually have been made at that date. 
  

	1.11	“Board” or “Board of Directors” 

 shall
mean the Board of Directors of Raytheon Aircraft Company, except that any action which could be taken by the Board may also be taken by a duly authorized committee of the Board. 
  

	1.12	“Break in Employment” 

 shall mean a Termination
followed by a one-year Period of Severance. 
  

	1.13	“Code” 

 shall mean the Internal Revenue Code of
1986, as amended from time to time. 
  

	1.14	“Committee” 

 shall mean the committee of
individuals appointed by the Board to be responsible for the operations and administration of the Plan in accordance with the provisions of Article 11. 
  

	1.15	“Compensation” 

 shall mean the wages as defined
in Code Section 3401(a) for purposes of income tax withholding, but without regard to any rules that limit the remuneration included in wages based on the nature or location of the employment or the services performed. For Limitation Years
beginning after 1997, Compensation shall include wage reductions under Sections 125 and 402(g)(3) of the Code. For Limitation Years beginning after 2000, Compensation shall include salary deferral contributions for qualified transportation fringe
benefits under Section 132(f)(4) of the Code. 
  

	1.16	“Credited Service” 

 shall mean the period of
service determined under Sections 2.05 and 2.06. 
  

	1.17	“Deferred Vested Benefit” 

 shall mean the
benefit to which a vested Participant would be entitled after a Break in Employment, as calculated in accordance with Article 5. 
  

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	1.18	“Defined Benefit Dollar Limitation” 

 shall mean
the limitation set forth in Section 415(b)(1) of the Code. 
  

	1.19	“Disability Retirement Benefit” 

 shall mean the
benefit to which a Participant would be entitled in the event of Total and Permanent Disability, as calculated in accordance with Article 5. 
  

	1.20	“Early Retirement Benefit” 

 shall mean the
benefit to which a Participant would be entitled in the event of his retirement prior to his Normal Retirement Date, as calculated in accordance with Article 5. 
  

	1.21	“Early Retirement Date” 

 shall mean the first
day of the calendar month coincident with or next following the Participant’s Termination Date, if such date is earlier than the Participant’s Normal Retirement Date, provided that the Participant’s Termination Date falls on or after
the Participant’s fifty-fifth (55th) birthday, and provided that the Participant has completed five years of Credited Service, including a comparable period of service earned under another plan maintained by an Affiliated Employer, by his
Termination Date. 
  

	1.22	“Effective Date” 

 shall mean October 1,
1955. 
  

	1.23	“Effective Date of this Restatement” 

 shall mean
January 1, 1997, or such other dates as may be specifically provided herein or as otherwise required by law for the Plan to satisfy the requirements of Section 401(a) of the Code. 
  

	1.24	“Eligible Employee” 

 shall mean a Salaried Plan
Employee who is employed by an Employer, but does not include a person whose terms and conditions of employment are the subject of a collective bargaining agreement between an Employer and a collective bargaining agent unless and until participation
in the Plan shall have been negotiated for and agreed to in writing by the representatives of such Employer and the collective bargaining agent. The term “Eligible Employee” shall not include a Leased Employee. 
  

	1.25	“Eligibility Service” 

 shall mean service as
counted for determining a Participant’s right to become a Participant in the Plan, as determined in accordance with Article 2. 
  

	1.26	“Employee” 

 shall mean any person who is
expressly designated as an employee on the books and records of an Affiliated Employer and who is treated as such by the Affiliated Employer for 

  

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federal employment tax purposes. Any person who, after the close of a Plan Year, is retroactively treated by an Affiliated Employer or any other party as an
employee for such prior Plan Year shall not, for purposes of the Plan, be considered an Employee for such prior Plan Year unless expressly so treated by the Affiliated Employer. 
  

	1.27	“Employer” 

 shall mean Raytheon Aircraft Company
(prior to October 24, 1994, called Beech Aircraft Corporation) and any other Affiliated Employer which, with the consent of the Committee, shall adopt this Plan for its Eligible Employees. “Employer” when used in this Plan shall refer
to such adopting entities either individually or collectively, as the context may require. 
  

	1.28	“Employment Commencement Date” 

 shall mean the
date on which the Employee first is credited with an Hour of Service. 
  

	1.29	“ERISA” 

 shall mean the Employee Retirement
Income Security Act of 1974 (Public Law #93-406), as amended from time to time. 
  

	1.30	“Estimated Primary Social Security Benefit” 

 means, as to a Participant retiring on or after Normal Retirement Date, the monthly Social Security retirement benefit to which the Participant would be entitled under Title II of the Social Security Act on the Participant’s
Termination Date, without regard as to whether the Participant is actually entitled to a Social Security retirement benefit. As to a Participant who has a Termination Date or ceases to be an Eligible Employee prior to Normal Retirement Date,
“Estimated Primary Social Security Benefit” means the monthly Social Security retirement benefit to which the Participant would be entitled at his Normal Retirement Date under Title II of the Social Security Act as in effect on the last
day of employment as an Eligible Employee, assuming that the Participant’s Credited Service continued until the Participant attained age sixty-five (65), that until the date on which the Participant would have attained age sixty-five
(65) the Participant received the same rate of compensation in effect when he last performed services as an Eligible Employee, that the Participant is actually entitled to a Social Security retirement benefit and elects to begin benefit
payments upon reaching age sixty-five (65). 
 The Social Security benefit is computed on the basis of an estimated earnings history
throughout the period during which the Participant could have been covered under the Social Security Act. Estimated earnings under this section will be computed by the Employer by applying a 6% discount to the employee’s annual rate of
compensation as in effect immediately after the period for which the estimate is being made to the later of 1951 or the calendar year the Participant reached age 22. 
  

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 In lieu of using an estimated compensation for a particular period, the Participant may elect to have his
Estimated Primary Social Security Benefit based on the Participant’s actual wage history as furnished by the Social Security Administration or such other source as the Employer deems to be reliable. The Participant must, however, supply the
Employer with satisfactory documentation of his actual wage history within one year of time following the later of his termination of employment or the date upon which the Employer notifies him of the benefit, if any, that he is entitled to receive
under the Plan. If the Participant elects to furnish his actual wage history after the date that his Accrued Benefit has been determined by the Employer, the recalculated Estimated Primary Social Security Benefit shall not cause a reduction to his
Accrued Benefit. 
  

	1.31	“Final Average Earnings” 

 shall mean the highest
amount obtainable by averaging a Participant’s Monthly Earnings for any 60 consecutive months of Active Employment with a Participating Employer (or the total number of such months, if the Participant has completed fewer than 60 months of
Active Employment with a Participating Employer) within the last 120 consecutive months prior to his last date of Active Employment with a Participating Employer. Prior to January 1, 1991, the 60-month average was based on consecutive months of
Credited Service instead of consecutive months of Active Employment with a Participating Employer. 
 If a Participant’s last 120
consecutive months of employment include a period of continuous layoff which does not cause a Loss of Seniority, then his Final Average Earnings shall be equal to the greater of (i) the amount determined under the preceding paragraph of this
Section 1.31, and (ii) the amount determined by assuming that he received Monthly Earnings during the period of continuous layoff at the same rate as in effect at the beginning of the period of layoff. 
 In calculating Final Average Earnings between January 1, 1989 and December 31, 1993, the total amount of Monthly Earnings taken into account in
any consecutive 12-month period shall not exceed $200,000 times the Adjustment Factor applicable for that calendar year. 
 In calculating
Final Average Earnings between January 1, 1994 and December 31, 2001, the total amount of Monthly Earnings taken into account in any consecutive 12-month period shall not exceed $150,000 times the Adjustment Factor applicable for such year
only after the cumulative cost-of-living adjustments are equal to or exceed the next $10,000 increment thereafter. In applying such limit to any consecutive 12-month period, the applicable limit shall be based on the annual compensation limit in
effect for the respective calendar year in which each 12-month period begins with the unadjusted $150,000 limit applied for all periods beginning prior to January 1,1994. 
  

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 In calculating Final Average Earnings on or after January 1, 2002, the total amount of Monthly
Earnings taken into account in any consecutive 12-month period shall not exceed $200,000. The $200,000 limit on annual compensation shall be adjusted for cost-of-living increases in accordance with Section 401(a)(17)(B) of the Code and the
applicable limit shall be based on the annual compensation limit in effect for the calendar year in which each 12-month period begins. In determining benefit accruals in Plan Years beginning on or after January 1, 2002, the annual compensation
limit for consecutive 12-month periods beginning before January 1, 2002 shall be $200,000. 
 In calculating Final Average Earnings for
a Participant who is being credited with Credited Service under Section 5.08 of this Plan (relating to a Participant receiving benefits under a long-term disability plan), it shall be assumed that such Participant continued to receive earnings
at the rate equal to his Monthly Earnings rate on the last day of Active Employment before his long-term disability benefits began. 
 In
calculating Final Average Earnings for a Participant who is eligible for Credited Service while a member under the Raytheon Company Pension Plan for Salaried Employees, as provided under Section 2.05, it shall be assumed that the
Participant’s period of Active Employment and Monthly Earnings under this Plan shall include his period of employment while a member under the Raytheon Company Pension Plan for Salaried Employees. 
  

	1.32	“Fund” 

 shall mean any fund provided for in a
trust arrangement or an insurance contract or a combination of both, which is held by a Funding Agent, to which contributions under the Plan on and after the Effective Date will be made, and out of which benefits are paid to the Participants or
otherwise provided for. 
  

	1.33	“Funding Agent” 

 shall mean a Trustee or
insurance company or any duly appointed successor or successors selected to hold a Fund. 
  

	1.34	“Highly Compensated Employee” and “Highly Compensated Former Employee” 

 shall mean an Employee who is determined to be a Highly Compensated Employee or Highly Compensated Former Employee under the provisions of Article 6 of
this plan. 
  

	1.35	“Hour of Service” 

 shall mean each hour for
which an Employee is paid, or entitled to payment, by an Employer, an Affiliated Employer or a Predecessor Employer, for the performance of duties. Hours of Service shall be computed and credited in accordance with the Department of Labor
regulations under Section 2530.200b. 
  

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	1.36	“Joint Annuitant” 

 shall mean the Beneficiary
who will receive retirement benefits after the death of the Participant based on the provisions of a joint and survivor annuity, as described in Article 9. 
  

	1.37	“Joint and Two-Thirds to Survivor Annuity” 

 shall mean a retirement benefit under which equal monthly installments are payable during the joint lifetimes of the retired Participant and the Joint Annuitant, and under which, upon the death of either the retired Participant or the Joint
Annuitant, an amount equal to two-thirds of the amount payable during their joint lifetime continues to be paid for the lifetime of the survivor. 
  

	1.38	“Leased Employee” 

 means any person (other than
an employee of the recipient) who pursuant to an agreement between the recipient and any other person (“leasing organization”) has performed services for the recipient (or for the recipient and related persons determined in accordance with
Section 414(n)(6) of the Code) on a substantially full-time basis for a period of at least one year and such services are performed under primary direction or control by the recipient. Except as provided in the next sentence, solely for
purposes of the requirements listed in Section 414(n)(3) of the Code, a Leased Employee shall be treated as an employee of the recipient, and contributions or benefits provided by the leasing organization which are attributable to services
performed for the recipient shall be treated as provided by the recipient. Notwithstanding the previous sentence, a Leased Employee shall not be considered an employee of the recipient for purposes of the requirements listed in
Section 414(n)(3) of the Code if both: (i) such employee is covered by a money purchase pension plan providing: (1) a nonintegrated employer contribution rate of at least 10 percent of compensation, as defined in
Section 415(c)(3) of the Code, but including amounts contributed pursuant to a salary reduction agreement which are excludable from the employee’s gross income under Section 125, Section 402(e)(3), Section 401(h)(1)(B),
Section 403(b) or, for years beginning after 2000, Section 132(f)(4) of the Code, (2) immediate participation, and (3) full and immediate vesting; and (ii) Leased Employees do not constitute more than 20 percent of the
recipient’s nonhighly compensated workforce. 
  

	1.39	“Loss of Seniority” 

 shall mean the occurrence
of an event that causes an Employee’s name to be removed from the seniority list maintained under a collective bargaining agreement between an Employer and a collective bargaining agent. 
  

 8 









	1.40	“Limitation Year” 

 shall mean the 12 month
period ending on each December 31. 
  

	1.41	“Monthly Earnings” 

 shall mean an amount
determined as follows: 
  

	 	(a)	The Monthly Earnings of a Participant for any month shall be the sum of the following amounts paid to or credited to an Employee for such month: 

  

	 	(1)	base salary, 

  

	 	(2)	cost of living adjustment payments (including payments credited under the Employer’s COLA and Bonanza programs), 

  

	 	(3)	bonus, discretionary and productivity awards, 

  

	 	(4)	unbankable sick leave, 

  

	 	(5)	area pay, 

  

	 	(6)	shift differential, 

  

	 	(7)	as to an Employee who is a Participant on or after January 1, 1988, commissions, 

  

	 	(8)	any amounts contributed pursuant to a salary reduction agreement on behalf of the Participant to a plan described in Internal Revenue Code section 125 or 401(k) which would have
been included in the Participant’s Monthly Earnings if the salary reduction agreement did not apply, 

  

	 	(9)	as to an Employee who is a Participant on or after January 1, 1991, straight-time pay while an hourly employee, and 

  

	 	(10)	payments made to a Participant pursuant to any deferred compensation program on or before his Termination Date, but only if the amounts on which such compensation is based would
have been included in Monthly Earnings in the year in which they were deferred if the deferral had not occurred. 

  

	 	(b)	Other elements of compensation, such as pay for overtime hours, income imputed for insurance coverages, the value of stock options and stock appreciation rights or any income from
the sale or exercise of stock options, termination payments for unused sick leave or unused accrued vacation pay and allowances or reimbursements for expenses, shall be excluded from Monthly Earnings. 

  

	 	(c)	Except as provided below, any payments of compensation shall be included in Monthly Earnings for the month in which it is actually paid. The following rules shall be used to
determine the month for which certain forms of compensation are included in Monthly Earnings: 

  

	 	(1)	The amount of Monthly Earnings credited to a month from a periodic payment that is attributable to more than one calendar month (such as cost of living adjustments and bonus awards)
shall be prorated over the number of months for which the payment pertains. 

  

 9 









	 	(2)	When a Participant who is eligible for a bonus award retires during a year before the bonus award for that year has been determined, it will be assumed that the Participant received
a bonus award in the year of retirement equal to one-twelfth of his prior year’s bonus, if any, for each full month worked during the year of retirement. 

  

	 	(3)	The amount of Monthly Earnings credited to any month within a Plan Year from commission payments shall be equal to total commissions during such year while the Participant was an
Eligible Employee, subject to the maximum limitation described in subsection (a)(7), divided by the number of months of Credited Service during such year while the Participant was an Eligible Employee. 

  

	 	(4)	The amount described in subsection (a)(10) shall not be included in Monthly Earnings unless the compensation on which it is based would have been paid in one of the sixty
consecutive months used to determine the Participant’s Final Average Earnings. 

  

	 	(d)	A Participant’s Monthly Earnings shall include the deemed Monthly Earnings prescribed in Section 2.07 during a Participant’s Qualified Military Service.


  

	1.42	“Named Fiduciary” 

 shall mean a fiduciary
designated as such under the provisions of Article 11. 
  

	1.43	“Normal Retirement Age” 

 means the later of:

  

	 	(a)	The date a Participant attains age 65, and 

  

	 	(b)	The fifth anniversary of the date he first performed an Hour of Service for the Employer or an Affiliated Employer. 

  

	1.44	“Normal Retirement Benefit” 

 shall mean the
benefit to which a Participant would be entitled in the event of his retirement on his Normal Retirement Date, as calculated in accordance with Article 5. 
  

	1.45	“Normal Retirement Date” 

 means first day of the
month following the month in which he attains his “Normal Retirement Age.” 
  

 10 









	1.46	“Participant” 

 shall mean any Employee who has
met the requirements of Section 3.01, whether or not he remains an Eligible Employee, and any individual who has separated from service but for whom there is still a liability under the Plan. 
  

	1.47	“Participating Employer” 

 shall mean any
Affiliated Employer that has elected, with the approval of the Committee, to participate in the Plan as to some or all of its Eligible Employees by adopting this Plan and the Funding Agreement. Such employees shall be considered Eligible Employees
under the Plan as of the date specified in a resolution adopted by the Committee and, for the purposes of their benefits under the Plan, the Participating Employer shall be included in the definition of Employer. The following subsidiaries became
Participating Employers as of the dates listed below, which is also the earliest date of Credited Service for its Eligible Employees: 
  

			
	Name of Subsidiary	  	Effective Date of Adoption
		
	Raytheon Aircraft Credit Corporation which prior to October 1, 1995 was called Beech Acceptance Corporation, Inc.	  	From July 31, 1972 until July 7, 2000 (see language immediately below this list)
		
	Beech Holdings, Inc.	  	July 31, 1972
		
	Raytheon Aircraft Services, Inc. which prior to September 26, 1995 was called United Beechcraft, Inc.	  	July 31, 1972
		
	Travel Air Insurance Co., (Kansas) which was previously called Travel Air Insurance Company, Ltd.	  	October 1, 1981
		
	Raytheon Aerospace Company, which prior to October 1, 1995 was called Beech Aerospace Services, Inc.	  	From October 1, 1987 until the closing date of the sale of Raytheon Aerospace Company stock (on or about June 8, 2001) (see language immediately below this
list)
		
	Subsidiary companies of Raytheon Aircraft Services, Inc.	  	January 1, 1988
		
	Travel Air Insurance Co., Ltd.	  	November 28, 1990
		
	Beech Military Regional Services, Inc.	  	January 19, 1993
		
	Beechcraft Sales, Inc. and its subsidiary companies	  	July 1, 1993

  

 11 









			
	Name of Subsidiary	  	Effective Date of Adoption
		
	Arkansas Aerospace, Inc.	  	September 1, 1993
		
	Raytheon Corporate Jets, Inc.	  	September 1, 1993
		
	Raytheon Aircraft International Service Company, which prior to June 2, 1995 was called Beech International Sales Corporation	  	June 1, 1994

 The portion of the Plan that covered the Active Participants employed by Raytheon Aircraft Credit Corporation on
July 7, 2000, the date of the completion of the stock purchase described in the stock purchase agreement dated April 14, 2000, between Raytheon Company, Raytheon Engineers & Constructors International, Inc. and Morrison Knudsen
Corporation, was spun-off and merged with and into the Raytheon Retirement Plan for Engineers & Constructors and Aircraft Credit Employees (the “RE&C Plan”) as of July 7, 2000, and no Employees of Raytheon Aircraft Credit
Corporation shall accrue any additional benefits under this Plan on and after such date, except that the liability for any benefits that may have accrued under the RE&C Plan for the following individuals and assets associated with that liability
(to the extent not already in this Plan) have been spun off and merged into this Plan by March 23, 2007, and shall be paid by this Plan: individuals whose employment by Raytheon Aircraft Credit Corporation ended before January 1,
2007, but who had not commenced benefits under the RE&C Plan before January 1, 2007. As of the closing date of the sale of Raytheon Aerospace Company stock (on or about June 8, 2001), Raytheon Aerospace Company ceased to be a
Participating Employer or an Affiliated Employer under the Plan. Employees of Raytheon Aerospace Company shall not accrue any additional benefits under the Plan after such date. 
  

	1.48	“Participation” 

 means Service while an Active
Participant. 
  

	1.49	“Period of Service” 

 shall mean the period of
service of a Participant that is used to satisfy the service requirement for eligibility to participate and for determining a Participant’s vesting in accrued benefits, as calculated in accordance with Article 2. 
  

	1.50	“Period of Severance” 

 shall mean a period
commencing on an Employee’s Severance from Service Date and ending on the date on which such Employee again is credited with an Hour of Service with an Employer or an Affiliated Employer. 
  

 12 









	1.51	“Plan” 

 shall mean the Plan designated as the
Raytheon Aircraft Company Retirement Income Plan For Salaried Employees, as embodied herein, and any amendments thereto, and shall also refer to any predecessor plan for which this document is a restatement, and any predecessor plan which has been
merged into this Plan. 
  

	1.52	“Plan Sponsor” 

 shall mean Raytheon Aircraft
Company (prior to October 24, 1994, called Beech Aircraft Corporation). 
  

	1.53	“Plan Year” 

 shall mean the period beginning on
January 1 and ending on the following December 31. 
  

	1.54	“Postponed Retirement Benefit” 

 shall mean the
benefit to which a Participant would be entitled in the event of his retirement after his Normal Retirement Date, as calculated in accordance with Article 5. 
  

	1.55	“Postponed Retirement Date” 

 shall mean the
first day of the calendar month next following the Participant’s Termination Date, if such date is later than the Participant’s Normal Retirement Date. 
  

	1.56	“Predecessor Employer” 

 shall mean, with respect
to an Employee, one or more of the following organizations or units, if the Employee was previously employed by them: None as of January 1, 1997. 
  

	1.57	“Predecessor to this Plan” 

 shall mean any plan
for which this Plan is a restatement, any plan which has been merged into this Plan or any Predecessor to this Plan, or any other plan sponsored by an entity which became an Affiliated Employer by acquisition or merger, and which adopted this Plan
or a Predecessor to this Plan for any of its employees who had been participants in such other plan. 
  

	1.58	“Qualified Joint and Survivor Annuity” 

 shall
mean, for a married Participant, a benefit payable in the form of an annuity for the life of the Participant and with a benefit payable for the life of the Participant’s spouse after the Participant’s death for an amount equal to 50
percent of the benefit payable during their joint lifetime. For a single Participant it shall mean a benefit payable in the form of an annuity for the life of the Participant. The Qualified Joint and Survivor Annuity for a married Participant shall
be at least the Actuarial Equivalent, determined under the applicable factors of Appendix A, of the Participant’s Accrued Benefit or, if greater in Actuarial Equivalent Value, any optional form of benefit then available to the Participant under
the Plan. 
  

 13 









	1.59	“Reemployment Commencement Date” 

 shall mean the
first date following a Severance from Service Date on which the Employee is credited with an Hour of Service. 
  

	1.60	“Retirement Date” 

 shall mean a
Participant’s Normal, Early, Postponed or Disability Retirement Date. 
  

	1.61	“Salaried Plan Employee” 

 shall mean an Employee
who satisfies one of the following conditions: 
  

	 	(a)	An Employee who receives compensation from the salary exempt payroll of Raytheon Aircraft Company (excluding any Employee who transferred from E-Systems, Inc. (Montek Division) to
Raytheon Aircraft Company on July 1, 1996), Raytheon Aircraft Credit Corporation (formerly Beech Acceptance Corporation, Inc.), Beech Holdings, Inc. Raytheon Aircraft Services, Inc. (formerly United Beechcraft, Inc.), Travel Air Insurance Co.,
Beechcraft Sales, Inc. or one of its subsidiary companies, Raytheon Corporate Jets, Inc. (excluding Control by Light Engineers on or after October 1, 1995) or Raytheon Aircraft International Service Company (formerly Beech International Sales
Corporation). Notwithstanding the preceding sentence of this subsection (a), no Employees of Raytheon Aircraft Credit Corporation (formerly Beech Acceptance Corporation, Inc.) shall be a Salaried Plan Employee on or after July 7, 2000, the date
the portion of this Plan covering such Employees was spun-off and merged with and into the Raytheon Retirement Plan for Engineers & Constructors and Aircraft Credit Employees (the “RE&C Plan”), except that the liability for
any benefits that may have accrued under the RE&C Plan for the following individuals and assets associated with that liability (to the extent not already in this Plan) have been spun off and merged into this Plan by March 23, 2007, and
shall be paid by this Plan; individuals whose employment by Raytheon Aircraft Credit Corporation ended before January 1, 2007, but who had not commenced benefits under the RE&C Plan before January 1, 2007. 

  

	 	(b)	 On or after October 1, 1987, an Employee who receives compensation from the salaried management payroll of Raytheon Aerospace Company (formerly Beech Aerospace
Services, Inc.); provided that any Employee who transferred from Serv-Air, Inc. to Raytheon Aerospace Company on January 1, 1996 and who was in an E-Systems, Inc. plan on December 31, 1995 and who stayed in an E-Systems, Inc. plan will be
excluded from this Plan; provided further that for similarly transferred Employees who are not excluded, prior service with Serv-Air, Inc. and E-Systems, Inc. will be treated as Eligibility and Vesting Service hereunder. Notwithstanding any other
provisions of this 



  

 14 









	 	 
Section 1.61(b), employees of Raytheon Aerospace Company shall not be Active Participants in this Plan after Raytheon Aerospace Company ceased to be a
Participating Employer under the Plan as provided in Section 1.47. 


  

	 	(c)	On or after January 1, 1988, an Employee on the salary exempt payroll of a subsidiary of Raytheon Aircraft Services, Inc. (formerly United Beechcraft, Inc.) that has elected to
be a Participating Employer. 

  

	 	(d)	On or after November 28, 1990, an Employee who receives compensation from the salary exempt payroll of Travel Air Insurance Co., Ltd. 

  

	 	(e)	On or after January 19, 1993, an Employee who receives compensation from the salary exempt payroll of Beech-Military Regional Offices, Inc. 

  

	 	(f)	On or after September 1, 1993, an Employee who receives compensation from the salary exempt payroll of Arkansas Aerospace, Inc. 

  

	 	(g)	On or after January 1, 1994, an Employee who receives compensation from the salary nonexempt payroll of Raytheon Aircraft Company. 

  

	 	(h)	An employee of the Atlanta Shared Service Center of Raytheon Aircraft Services, Inc. (formerly United Beechcraft, Inc.) in Atlanta, Georgia who was transferred to such position on
or after March 17, 1995 from a position as a salary nonexempt Employee of Raytheon Aircraft Company in the Accounts Payable department in Wichita, Kansas or in the Little Rock Division. 

 Notwithstanding the foregoing, an Employee of Raytheon Aircraft Company who was formerly an employee of Raytheon Corporate Jets, Inc. located at either the Little Rock
facility or the United Kingdom facility shall not be a Salaried Plan Employee. 
 Effective October 1, 1995, notwithstanding the
preceding sentence, a salaried Employee of Raytheon Aircraft Company who was formerly an employee of Raytheon Corporate Jets, Inc., located at the Little Rock facility will be treated as a Salaried Plan Employee effective October 1, 1995.
Furthermore, for purposes of determining such an Employee’s Credited Service, the Employee will be treated as a Salaried Plan Employee effective September 1, 1993. 
  

	1.62	“Severance from Service Date” 

 shall mean the
earlier of the dates in subparagraphs (a) and (b) below, except that a Severance from Service Date shall not occur during any of the periods described in subparagraphs (c), (d) and (e) below. 
  

	 	(a)	The date on which the Employee ceases to be employed by each Employer and Affiliated Employer because the Employee quits, retires, is discharged or dies. 


 

 15 









	 	(b)	The first anniversary of the first day of a period in which the Employee remains absent from employment (with or without pay) with each Employer and Affiliated Employer for any
reason other than those specified in paragraph (a) of this section. 

  

	 	(c)	A period of absence not exceeding 24 months that began on or after January 1, 1985 by reason of (i) the pregnancy of the Employee, (ii) the birth of a child of the
Employee, (iii) the placement of a child with the Employee in connection with the adoption of such child by such Employee, or (iv) the care of a child for a period beginning immediately following such birth or placement.


  

	 	(d)	A period of continuous layoff which does not result in the Employee’s Loss of Seniority, provided such Employee returns to work within his recall period.


  

	 	(e)	A period of approved sick leave or other approved leave of absence (which shall be granted in a uniform and nondiscriminatory manner) provided such Employee returns to work at the
end of the leave or authorized extension thereof. 

  

	1.63	“Social Security Adjustment” 

 shall mean an
amount equal to 50% of the Participant’s Estimated Primary Social Security Benefit adjusted as follows: 
  

	 	(a)	The Estimated Primary Social Security Benefit shall be determined by assuming that the Participant does not receive any further compensation after the last date that he performs
services as a Salaried Plan Employee. 

  

	 	 (b)
	 If the Participant is eligible for an Early Retirement Benefit and elects to receive payments before Normal Retirement
Date, the Social Security Adjustment, as defined above, shall be reduced by  1/180 for each month, not exceeding
36 months, that the benefit commencement date precedes the Normal Retirement Date. 


 Once determined for a
Participant, such amount shall remain constant. 
  

	1.64	“Termination” 

 shall mean the cessation of
Active Employment with the Employer and each Affiliated Employer. 
  

	1.65	“Termination Date” 

 shall mean the first date on
which an Employee ceases Active Employment with the Employer and each Affiliated Employer. 
  

	1.66	“Total and Permanent Disability” 

 shall mean a
disability resulting from sickness, accident, ill health or other physical or mental causes which prevents a Participant from performing and discharging the duties of suitable employment. A Participant shall be deemed to be totally and permanently
disabled only 

  

 16 








 
if the period of disability shall have continued for at least two consecutive months in the case of a work-related disability (either a work-related illness
or an on-the-job injury) or at least six consecutive months in the case of a non-work-related disability and if the disability will be permanent and continuous during the remainder of his life. The existence of Total and Permanent Disability shall
be established based on evidence that the Participant is eligible for disability benefits under the Social Security Act in effect at the date of disability. 
  

	1.67	“Trust” 

 shall mean any trust established under
an agreement between the Employer and a Trustee under which any portion of the Fund is held, and shall include any and all amendments to the trust agreement. 
  

	1.68	“Trustee” 

 shall mean any trustee holding any
portion of the Fund under a Trust agreement forming a part of the Plan. 
  

	1.69	“Vesting Service” 

 shall mean service for
determining a Participant’s right to his Accrued Benefit under Article 7, as counted under the rules of Article 2. 
  

 17 








 ARTICLE 2 
 Service Counting Rules 
  

	2.01	Period of Service 

  

	 	(a)	General Rule 

 Unless otherwise disregarded under
the provisions of Section 2.06, an Employee’s Period of Service shall mean the sum of all periods of service identified under subparagraphs (1), (2) and (3) below while an Employee of an Employer or Affiliated Employer, measured
in days and converted to full years and completed months with a fractional month (less than 30 days) treated as a complete month. 
  

	 	(1)	The period commencing on the Employee’s Employment Commencement Date and ending on the Employee’s Severance from Service Date. 

  

	 	(2)	The period (if any) commencing on the Employee’s Reemployment Commencement Date and ending on the date the Employee incurs the first Severance from Service Date after such
Reemployment Commencement Date. 

  

	 	(3)	If an Employee does not incur a Period of Severance of at least one year during the period from the Employee’s Severance from Service Date to the Employee’s Reemployment
Commencement Date, said period shall be included in the Employee’s Period of Service; provided, however, if the Employee incurs a Severance from Service Date by reason of a quit, discharge or retirement during an absence from service (for
reasons other than a quit, discharge or retirement) of twelve months or less, and the Employee’s Reemployment Commencement Date occurs later than twelve months after the first day of such absence, the period between said Severance from Service
Date and the Employee’s Reemployment Commencement Date shall not be included in the Employee’s Period of Service. 

  

	 	(b)	Exception - Maternity or Paternity Absence 

 In the
case of an Employee who is absent from work for any period on or after January 1, 1985, by reason of (i) the pregnancy of the Employee, (ii) the birth of a child of the Employee, (iii) the placement of a child with the Employee
in connection with the adoption of such child by the Employee, or (iv) the care of a child for a period beginning immediately following such birth or placement, the period of absence between the first and second anniversaries of the first date
of absence shall not be included in the Employee’s Period of Service. 
  

 18 









	 	(c)	Exception - Continuous Layoff 

 In the case of an
Employee who is absent from work for more than twelve months due to a continuous layoff and returns to work before a Loss of Seniority within his recall period, the period of absence after the first anniversary of his first date of layoff and before
the date of return to work shall not be included in the Employee’s Period of Service. 
  

	 	(d)	Exception - Leave of Absence 

 In the case of an
Employee who is absent from work for more than twelve months due to an approved sick leave or other approved leave of absence and returns to work at the end of the leave or authorized extension thereof, the period of absence after the first
anniversary of his first day of absence and before the date of return to work shall not be included in the Employee’s Period of Service. 
  

	 	(e)	Exception - Qualified Military Service 

 Notwithstanding the preceding provisions of this section, an Employee’s Period of Service shall include any period of Qualified Military Service prescribed in Section 2.07. 
  

	 	(f)	Exception - Predecessor Employer 

 For purposes of
determining an Employee’s Period of Service, service with a Predecessor Employer shall be treated as service with a Participating Employer only to the extent established in accordance with the terms and conditions of a resolution adopted by the
Committee. 
  

	 	(g)	Exception - Acquired Business 

 Notwithstanding the
preceding provisions of this Section 2.01, an Employee’s Period of Service shall include service for which the Employee would be entitled to credit under this Plan as a result of employment with a predecessor business, substantially all of
the assets of which have been acquired by an Affiliated Employer, provided the Employee was employed by the predecessor business at the time of the acquisition. Where only a portion of the operations of the business have been acquired, only service
with said acquired portion prior to the acquisition will be included, and then only if the Employee was employed by said portion of the acquired business at the time of the acquisition. 
  

	2.02	Active Employment 

 An Employee’s Active
Employment as used for purposes of determining Credited Service in accordance with Section 2.05 shall be determined as follows: 
  

	 	(a)	General Rule 

 Unless otherwise disregarded under
the provisions of Section 2.06, Active Employment shall mean the sum of all periods of time identified in subparagraphs (1), (2), (3)

  

 19 








 
and (4) below while an Employee of an Employer or Affiliated Employer, occurring between the Employee’s Employment Commencement Date or
Reemployment Commencement Date, whichever is applicable, and ending on the Severance from Service Date, measured in days and converted to full years and completed months with fractional months (less than 30 days) treated as completed months.

  

	 	(1)	All periods of employment during which an Employee is paid either for the performance of duties or for reasons other than the performance of duties (such as vacation, holiday, sick
leave, jury duty or military duty). Such periods shall begin on the first day that the Employee is paid for the performance of duties and end on the earlier of the date on which the Employee quits, is discharged, retires or dies, or the last day for
which he is entitled to payment. 

  

	 	(2)	Any period of unpaid absence from work of thirty days or less resulting from an Employee’s authorized leave of absence (granted in a uniform and non-discriminatory manner),
medical leave, continuous layoff or military leave; provided, however, such absences shall not be included in Active Employment if the Employee does not return to work at the end of the unpaid absence. 

  

	 	(3)	In the case of an Employee whose terms of employment is subject to a collective bargaining agreement that provides for additional service recognition during a period while receiving
Workers’ Compensation benefits, the first twelve months of a continuous period of absence during which the Employee is eligible to receive monthly income payments under applicable Workers’ Compensation laws; provided, however, no Employee
shall receive additional service under this paragraph for an absence that commenced prior to August 6, 1990. 

  

	 	(4)	In the case of an Employee who terminates from employment while on either the salary nonexempt or the exempt salary payroll, any periods during which the Employee is receiving
severance pay. 

  

	 	(b)	Exception - Military Service 

 Notwithstanding the
preceding provisions of this section, an Employee’s Active Employment shall include any period of Qualified Military Service prescribed in Section 2.07. 
  

	2.03	Eligibility Service 

 An Employee’s Eligibility
Service shall be the same as his Vesting Service. 
  

	2.04	Vesting Service 

 A Participant’s Vesting
Service after December 31, 1988 shall be equal to the Participant’s Period of Service after that date. The Vesting Service earned by a Participant for 

  

 20 








 
service prior to January 1, 1989, shall include any service recognized for vesting purposes under the Plan as it existed prior to January 1, 1989,
including any service with a Predecessor to this Plan. 
  

	2.05	Credited Service 

 A Participant’s Credited
Service during a Period of Service on or after December 31, 1988 shall be equal to the Participant’s period(s) of Active Employment while an Eligible Employee on or after that date. The Credited Service earned by a Participant for periods
prior to January 1, 1989 shall be based on his period of “credited service” under the Plan as it existed prior to January 1, 1989. 
 A Participant who receives a distribution under Section 9.02 of the present value of his nonforfeitable benefit loses the Credited Service used in determining the nonforfeitable benefit. For purposes of this
paragraph, a Participant who is not entitled to a Deferred Vested Benefit on his Termination Date shall be considered to have received such a distribution on the date he has a Break in Employment. 
 If a Participant transfers on or after January 1, 1984 from employment with an Affiliated Employer that was a participating company in the Raytheon
Company Pension Plan for Salaried Employees to employment as an Eligible Employee with a Participating Employer without incurring a Termination, the Participant’s Credited Service shall include the period of employment that the individual was a
“member” under the Raytheon Company Pension Plan for Salaried Employees. 
  

	2.06	Pre-Break Service - General Rule 

 A Participant who
incurs a Break in Employment and has a Reemployment Commencement Date shall have his pre-break Vesting Service and, unless he has received a non-zero distribution of the present value of his entire nonforfeitable benefit, his pre-break Credited
Service added to his Vesting Service and Credited Service following rehire, provided that both of the following requirements are satisfied: 
  

	 	(a)	Rehire Rule - The Participant has been credited with one year of Eligibility Service following his Reemployment Commencement Date. 

  

	 	(b)	Rule of Parity - If the Participant was not entitled to a Deferred Vested Benefit when he incurred a Break in Employment, his Period of Severance is either less than five
(5) years or is less than his Period of Service before his Break in Employment. 

 The pre-break Credited Service and
Vesting Service restored under this Section 2.06 shall not include any pre-break Periods of Service that were disregarded by virtue of any prior Break in Employment. The pre-break Credited Service restored under this Section 2.06 shall not
include any Credited Service disregarded because of a non-zero distribution under Section 9.02. 
  

 21 









	2.07	Special Rules Relating to Qualified Military Service 

  

	 	(a)	An Employee who returns from Qualified Military Service shall be subject to the following special rules with respect to such Qualified Military Service: 

  

	 	(1)	The Employee shall not be treated as having incurred a Break in Employment by reason of the Employee’s period of Qualified Military Service. 

  

	 	(2)	Each period of Qualified Military Service served by the Employee, upon reemployment, shall constitute a Period of Service and Active Employment. 

  

	 	(3)	For purposes of determining an Employee’s Accrued Benefit for the period of Qualified Military Service, the Employee’s Monthly Earnings during the period of Qualified
Military Service shall be determined: 

 (A) at the rate the Employee would have received if the Employee had continued working
for the Participating Employer during the period of Qualified Military Service; or 
 (B) if the determination in subparagraph (A) is
not certain, on the basis of the Employee’s average rate of Monthly Earnings during the 12-month period immediately preceding the period of Qualified Military Service (or, if shorter, the period of employment immediately preceding such period).

  

	 	(b)	For this purpose, the term “Qualified Military Service” shall mean any service in the uniformed services by any Employee if such Employee is entitled to reemployment
rights under Chapter 43 of title 38, United States Code, provided, the Employee returns to employment, with the Participating Employer within the applicable time limits prescribed in Chapter 43 of title 38, United States Code. Effective
December 12, 1994, notwithstanding any provision of this Plan to the contrary, contributions, benefits and service credit with respect to Qualified Military Service shall be provided in accordance with Section 414(u) of the Code.


  

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 ARTICLE 3 
 Eligibility for Participation and Transfers 
  

	3.01	Eligibility to Become a Participant 

 All
Participants who were participating in this Plan on the Effective Date of this Restatement shall continue to participate. Any other Employee shall become a Participant on the first day on which: 
  

	 	(a)	he is an Eligible Employee, 

  

	 	(b)	if he is first employed as a Salaried Plan Employee after December 31, 1989, he completes one year of Eligibility Service, and 

  

	 	(c)	if he is first employed after July 31, 1993, he has attained age 21. 

  

	3.02	Reemployment 

 A Participant who incurs a Break in
Employment and is later re-employed as an Eligible Employee will be treated as a new Employee and will recommence Participation when he again satisfies the conditions of Section 3.01. 
  

	3.03	Termination of Participation 

 A Participant who
incurs a Break in Employment at a time when he is not entitled to a retirement benefit or to a Deferred Vested Benefit shall cease Participation at his Severance from Service Date. A Participant who incurs a Break in Employment and who is entitled
to a retirement benefit or a Deferred Vested Benefit shall cease Participation upon receipt of payments equal to his total benefit provided hereunder, as a lump sum benefit under the terms of Section 9.02 or otherwise. 
  

	3.04	Transfer to Another Plan 

 If at the time a
Participant or Beneficiary becomes entitled to a benefit hereunder, the Participant or Beneficiary is also entitled to a benefit under another defined benefit plan of an Affiliated Employer that provides for a transfer of the Actuarial Equivalent
Value of benefits earned under this Plan to the last such plan under which the Participant has earned a benefit; then the Actuarial Equivalent Value of the benefits earned under this Plan shall be transferred to that plan, and the benefits earned
under this Plan will be paid according to the terms of that plan. 
  

	3.05	Transfer from Another Plan: Prohibition of Double Counting 

 In the event a Participant has previously participated in another defined benefit plan of an Affiliated Employer and becomes entitled to a benefit hereunder, which is calculated using 

  

 23 








 
Credited Service which includes service that is also counted for benefits under such other defined benefit plan, then, unless such other plan provides an
offset for benefits provided hereunder, his benefit provided hereunder shall be offset by the benefits provided by such other plan (or, if not payable in the same form, the Actuarial Equivalent of such benefits) that are attributable to such
service. If at the time a Participant or a Beneficiary becomes entitled to a benefit hereunder the Participant or Beneficiary is also entitled to a benefit under another defined benefit plan of an Affiliated Employer that provides for a transfer of
the actuarial equivalent value of benefits earned under said plan to this Plan, then said benefits shall become an obligation of this Plan and payable in an Actuarial Equivalent amount in the same form of payment as elected for benefits earned under
this Plan. 
  

	3.06	Coordination with Raytheon Company Pension Plan for Salaried Employees 

 Raytheon Aircraft Company will cease to be a member of the same controlled group of corporations as Raytheon Company upon the closing of the divestiture of Raytheon Aircraft Company on March 26, 2007 (the
“Closing Date”). As of such date, assets will be transferred from Exhibit A of the Raytheon Company Pension Plan for Salaried Employees (the “Raytheon Salaried Plan”) to this Plan, and assets will be transferred from this Plan to
the Raytheon Salaried Plan, to provide for payment from only one plan of the entire benefit to which a person who had service under both plans is entitled. The asset transfer will be made to the plan in which such a person was an active participant
as of the Closing Date or, if earlier, the date of termination of employment. The asset transfer will be based on the valuation of liabilities for accrued benefits under the terms of the respective plans, taking into account only service and
compensation through the Closing Date. Benefits that accrue under this Plan for periods after the Closing Date will be determined without regard to the provisions of this Plan that otherwise coordinate benefits with the Raytheon Salaried Plan,
including, without limitation, the third paragraph of Section 2.05 and the provisions of Article 3 other than this Section 3.06. 
  

 24 








 ARTICLE 4 
 Retirement Eligibility and 
 Suspension of Benefits 
  

	4.01	Retirement 

 A Participant who has reached his
Retirement Date shall be entitled to retire and receive benefits in accordance with Article 5. 
  

	4.02	Suspension of Benefits - Postponed Retirement 

 If a
Participant’s Period of Service continues after his Normal Retirement Age and during any month after his Normal Retirement Age the Participant has Section 203(a)(3)(B) Service (as defined in Section 4.05), such Participant’s
benefits will be suspended, provided that the Committee notifies him that his benefits have been suspended in the manner provided by Section 4.04 of this Article. 
  


	4.03	Suspension of Benefits - Rehires 

 If a person
receiving benefits hereunder is rehired by the Employer or an Affiliated Employer, payment of those benefits will be suspended as long as the rehired Employee remains employed with the Employer or an Affiliated Employer; provided, however, that no
suspension shall occur during any month after his Normal Retirement Age that is not considered to be Section 203(a)(3)(B) Service (as defined in Section 4.05) and provided that the Committee notifies him that benefits have been suspended,
in the manner provided by Section 4.04 of this Article. 
  

	4.04	Suspension of Benefit Notice 

 The notice required
under Sections 4.02 or 4.03 of this Article shall contain: 
  

	 	(a)	a description of the specific reasons for the suspension of benefit payments, 

  

	 	(b)	a general description of the Plan’s provisions relating to the suspension, 

  

	 	(c)	a copy of such provisions, 

  

	 	(d)	a statement to the effect that applicable Department of Labor regulations may be found in Section 2530.203-3 of the Code of Federal Regulations, and 


 

	 	(e)	a description of the Plan’s procedure for affording a review of such suspension. 

 Such notice shall be furnished by personal delivery or first-class mail during the first calendar month in which payments are discontinued. 
  


 25 









	4.05	Section 203(a)(3)(B) Service 

 In accordance
with DOL Regulations Section 2530.203-3, “Section 203(a)(3)(B) Service” shall be determined on a monthly basis and an Employee shall be deemed to be in Section 203(a)(3)(B) Service in any month in which he shall perform 40 or
more hours of service (as defined in Regulation Section 2530.200b-2(a)(1) and (2)). An Employee shall have the right to contest the determination of his status in accordance with the procedures set forth in Section 11.08 of this Plan.

  

	4.06	Recommencement of Benefits 

 Benefits which are
suspended in accordance with Section 4.02 or 4.03 of this Article shall be paid in any month in which the Participant is not considered to be in Section 203(a)(3)(B) Service. If an Employee whose benefits are suspended continues or
recommences Participation in this Plan and thereafter again becomes entitled to benefits hereunder by virtue of a new Early, Normal or Postponed Retirement, previously suspended benefits shall not be recommenced, and the Participant shall be
entitled only to his Early, Normal or Postponed Retirement Benefit, as of the Participant’s new Early, Normal or Postponed Retirement Date, adjusted as provided in Section 5.06. 
  

	 4.07
	 Required Commencement at Age 70  1/2 


 The payment of benefits to a Participant who has attained age 70 1
/2 and is subject to the mandatory distribution requirements of Section 401(a)(9) of the Code shall commence at the time payments must
commence in order to comply with such requirements. Such payments shall be made notwithstanding any contrary provisions of the Plan or election made by such Participant. Notwithstanding any other provision of this Plan to the contrary, a Participant
who attains age 70 1/2 after December 31, 1987 shall commence payment of his benefit no later than
April 1st of the calendar year following the calendar year in which such Participant attains age 70 1/2. A
Participant who is required to begin receiving benefits under this Section 4.07 shall commence receiving benefits as though he had retired on December 31 of the calendar year in which he attains age 70 1/2, with April 1 of the following calendar year as his Benefit Commencement Date. Each December 31
thereafter, and upon his later actual Postponed Retirement Date, his benefit payment shall be recalculated using his actual Credited Service and the Dollar Credit applicable to such date. But the recalculated benefit payments shall be reduced by the
Actuarial Equivalent of any payments previously made to him. Any such reduction shall not cause benefit payments to be decreased to an amount less than the amount the Participant was receiving immediately prior to the date of recalculation, or, in
the event of a recalculation because of his attaining his actual Postponed Retirement Date, immediately prior to his actual Postponed Retirement Date. 
  

 26 









	4.08	Required Commencement - Conditions 

 Notwithstanding
any provision of this Plan to the contrary, all distributions under the Plan shall be made in accordance with the requirements of Code Section 401(a)(9) and the regulations thereunder, including the incidental death benefit requirements of
1.401(a)(9)-2. The provisions of this Section override any distribution options under the Plan if inconsistent with the requirements of Section 401(a)(9). The payment of benefits under the Plan shall commence no later that the 60th day after
the close of the Plan Year in which the Participant either attains Normal Retirement Age or, if later, terminates service with the Employer. 
  

 27 








 ARTICLE 5 
 Amount of Retirement Benefit 
  

	5.01	Accrued Benefit 

 A Participant’s Accrued
Benefit shall be a monthly amount equal to the sum of the amount determined under Supplement A (if applicable) and the largest of the amounts determined under subparagraphs (a), (b), (c), and (d) below as of his Termination Date, largest of the
amounts determined under subparagraphs (a), (b) and (c) below as of his Termination Date. 
  

	 	(a)	An amount equal to the Participant’s Final Average Earnings less his Estimated Primary Social Security Benefit multiplied by 1.8% for his years of Credited Service, not
exceeding 20, and multiplied by 1.2% for his years of Credited Service in excess of 20 but not in excess of 49 years. In no event shall the aggregate adjustment for Social Security under this Section 5.01(a) exceed 60% of a Participant’s
Estimated Primary Social Security Benefit. 

  

	 	(b)	An amount equal to the Participant’s years of Credited Service under this Plan multiplied by the “dollar credit” specified in Section 5.01 of the Raytheon
Aircraft Company Retirement Income Plan for Hourly Paid Employees for an Employee whose Termination occurs on the same date as the Participant. 

  

	 	(c)	Unless otherwise provided under the Plan, each section 401(a)(17) employee’s Accrued Benefit under this Plan will be the greater of the Accrued Benefit determined for the
Participant under subparagraph (1) or (2) below: 

  

	 	(1)	The Participant’s Accrued Benefit determined with respect to the benefit formula applicable for Plan Years beginning on or after January 1, 1994, as applied to the
Participant’s total years of Credited Service, or 

  

	 	(2)	The sum of: 

  

	 	(i)	The Participant’s Accrued Benefit as of December 31, 1993, frozen in accordance with IRS regulations Section 1.401(a)(4)-13, and 

  

	 	(ii)	The Participant’s Accrued Benefit determined under the benefit formula applicable for Plan Years beginning on or after January 1, 1994, as applied to the
Participant’s years of Credited Service for Plan Years beginning on or after January 1, 1994; provided, however, that for purposes of determining whether the years of Credited Service after January 1, 1994 are years not in excess of
20 or years in excess of 20, years of service prior to January 1, 1994 shall be recognized. 

  

 28 








 If the Participant has more than 49 years of Credited Service, the Accrued Benefit under subsection
(2) shall not exceed the sum of the benefit credits attributable to the 49 years that produce the largest benefit. 
 A “section
401(a)(17) employee” means a Participant whose current Accrued Benefit as of a date on or after January 1, 1994, is based on compensation for a year beginning prior to January 1, 1994, that exceeded $150,000. 
  

	 	(d)	For a Participant who became a member of this Plan before January 1, 1988, the lesser of (i) 1.2% of his Final Average Earnings multiplied by his Credited Service, and
(ii) 60% of his Final Average Earnings less his Social Security Adjustment. 

  

	5.02	Normal Retirement Benefit 

 A Participant’s
Normal Retirement Benefit shall be a monthly annuity for the life of the Participant, commencing upon the Participant’s Normal Retirement Date, in an amount equal to his Accrued Benefit at Normal Retirement Date. 
  

	5.03	Postponed Retirement Benefit 

 A Participant whose
Termination Date is after his Normal Retirement Date, and whose pension payments have not commenced under Section 4.07 before his Termination Date, shall be entitled to a Postponed Retirement Benefit of a monthly annuity for life, in an amount
equal to his Accrued Benefit (as defined in Section 5.01) at his Postponed Retirement Date. 
 A Participant whose Termination Date is
after his Normal Retirement Date and whose pension payments have commenced under Section 4.07 shall be entitled to a Postponed Retirement Benefit as determined under Section 4.07. 
  

	5.04	Early Retirement Benefit 

 A Participant who has a
Termination prior to his Normal Retirement Date but on or after attaining age 55, and who has completed at such time five years of Credited Service, including a comparable period of service under another plan maintained by an Affiliated Employer,
shall be entitled to an Early Retirement Benefit of a monthly annuity for life, commencing at the date which would have been the Participant’s Normal Retirement Date had he not retired early, in an amount equal to his Accrued Benefit at his
Early Retirement Date. At the election of the Participant, the Participant may receive his Early Retirement Benefit as an annuity commencing at his Early Retirement Date or at the first of any month thereafter and before his Normal Retirement Date,
in a reduced amount calculated by multiplying the Early Retirement Benefit as calculated under the first sentence of this Section 5.04 by the appropriate factor contained in 

  

 29 








 
Appendix A to reflect the earlier commencement of benefits. A Grandfathered Participant who incurred a Termination as a result of Raytheon Aerospace Company
ceasing to be a Participating Employer under the Plan, as provided in Section 1.47, shall nevertheless not incur a Termination for purposes of this Section 5.04 until such Grandfathered Participant terminates employment with Raytheon
Aerospace Company (or any successor employer). For purposes of the preceding sentence, a Grandfathered Participant is a Participant who as of the closing date referred to in Section 1.47(a) was an employee of Raytheon Aerospace Company,
(b) has attained age 40, but not age 55, and (c) has completed five years of Credited Service. 
  

	5.05	(a)            Deferred Vested Benefit 

 A Participant who has incurred a Break in Employment after completing the requirements for vesting under the provisions of Article 7, and who is not
entitled to any other benefit under the Plan, shall be entitled to a monthly pension benefit, payable as a straight life annuity commencing at Normal Retirement Date equal to the Participant’s Accrued Benefit on his Termination Date, unless
such Participant has been cashed out pursuant to Section 9.02. 
  

	 	(b)	Deferred Vested Benefit - Early Commencement 

 A
Participant entitled to a Deferred Vested Benefit who has satisfied the service requirement for entitlement to an Early Retirement Benefit (specified in Section 5.04), and who subsequently satisfies the age requirement stated in that section
for entitlement to an Early Retirement Benefit shall be entitled to elect to begin receiving his Deferred Vested Benefit on the first of any month thereafter and no later than his Normal Retirement Date, in an amount calculated in accordance with
the factors included in Appendix A. 
  

	5.06	Adjustment for Suspension of Benefits 

 The
otherwise payable Early, Normal or Postponed Retirement Benefit of any Participant who had previously become entitled to an Early, Normal or Postponed Retirement Benefit, but whose benefit payments were suspended pursuant to the provisions of
Article 4, shall be reduced by the Actuarial Equivalent of any payments previously made to him. In no event, however, shall the redetermined benefit be less than the amount of monthly benefit the Participant had received prior to suspension of
benefits. 
  

	5.07	Disability Retirement Benefit 

 A Participant who
has incurred a Total and Permanent Disability during Active Employment while an Employee of a Participating Employer shall be entitled to a Disability Retirement Benefit of a monthly annuity for life, commencing on the first day of the month
following his eligibility date in an amount equal to the lesser of (i) 1.2% of his Final Average 
  

 30 








 Earnings multiplied by his Credited Service and (ii) 60% of his Final Average Earnings less his Social Security
Adjustment subject to the following conditions and restrictions: 
  

	 	(a)	Eligibility Date - Work-Related Disability 

 A
Participant who incurs a Total and Permanent Disability in the course of his employment during the hours for which he is compensated shall be eligible for a Disability Retirement Benefit on the later of (i) the first date on which he meets the
requirements for a work-related Total and Permanent Disability and (ii) the date he files a proper application with the Employer for a Disability Retirement Benefit. 
  

	 	(b)	Eligibility Date - Non-Work-Related Disability 

 A
Participant who has completed ten years of Vesting Service and incurs a Total and Permanent Disability that is established as not having occurred in the course of his employment shall be eligible for a Disability Retirement Benefit on the later of
(i) the first date on which he meets the requirements for a non-work-related Total and Permanent Disability and (ii) the date he files a proper application with the Employer for a Disability Retirement Benefit. 
  

	 	(c)	Continued Proof of Disability 

 The Committee may
require each Participant in the receipt of a Disability Retirement Benefit to submit, not more than semiannually, evidence that the Participant’s Total and Permanent Disability continues in effect (evidence that the Participant remains eligible
for benefits under the Social Security Act). If, as of any time before the Participant attains his Normal Retirement Age, he refuses to submit such evidence or if it is determined that the Participant no longer meets the conditions for a Total and
Permanent Disability, the Disability Retirement Benefit shall cease and the Participant shall thereafter only be entitled to the benefits which the Participant may qualify for under another section of the Plan. However, the period of time prior to
such a refusal or determination shall be disregarded for purposes of determining whether a Break in Employment has occurred. 
  

	 	(d)	Termination of Disability Retirement Benefit 

 Payment of a Disability Retirement Benefit to a Participant shall terminate with the payment made on the first day of the month preceding the date on which any of the following events occur: 
  

	 	(1)	Death of the Participant. In such event, an Automatic Preretirement Spousal Death Benefit shall be payable to the Participant’s surviving spouse, if any.


  

	 	(2)	Events described in Section 5.07(c) above. 

  

	 	(3)	 Attainment of Normal Retirement Age by the Participant. In such event, the Participant shall become entitled to receive a Normal Retirement Benefit based 



  

 31 









	 	 
upon the Vesting Service and Credited Service which was credited to the Participant as of the date of the Participant’s Total and Permanent Disability.
The Normal Retirement Benefit shall be payable as provided in Article IX. 


  

	5.08	Adjustment for Participants Receiving LTD Benefits 

 If a Participant who is making voluntary employee contributions under a long-term disability plan being maintained by the Employer incurs an interruption of Active Employment while a Salaried Plan Employee which results in his eligibility
to receive long-term disability benefits, then he shall be entitled to whichever of the following benefits are applicable to him in lieu of the Disability Retirement Benefit described in Section 5.07. 
  

	 	(a)	If such Participant (i) does not recover prior to attaining his Normal Retirement Date, (ii) is no longer receiving long-term disability benefits, and (iii) has not
claimed or accepted a Disability or Early Retirement Benefit or Deferred Vested Benefit, then he shall be entitled to a Normal or Postponed Retirement Benefit, whichever is applicable, based on the formula used to determine his Accrued Benefit as of
the date that he became eligible to receive long-term disability benefits, with the following modifications: 

  

	 	(1)	His Credited Service shall be calculated as though he had remained in Active Employment until the date that long-term disability benefits end. 

  

	 	(2)	His Final Average Earnings shall be determined as though he had continued to receive compensation during his period of disability at the rate of his Monthly Earnings in effect on
the last day of Active Employment before his long-term disability benefits began. 

  

	 	(3)	His Estimated Primary Social Security Benefit shall be determined under Title II of the Social Security Act as in effect on the date he became eligible to receive long-term
disability benefits, assuming the Participant received compensation at the rate specified in subparagraph (2) until the date that his Normal Retirement Benefit or Postponed Retirement Benefit begins. 

  

	 	(b)	If such Participant (i) recovers prior to attaining his Normal Retirement Date so he is no longer eligible to receive long-term disability benefits, (ii) makes a bona fide
application immediately after such recovery for reemployment with the Employer in a position comparable to that held by him when his long-term disability occurred (and accepts such employment in good faith), and (iii) has not claimed or
accepted any Disability Retirement or Early Retirement Benefit or Deferred Vested Benefit, then he shall have his Credited Service and Final Average Earnings calculated as though he had remained in Active Employment for the entire period of his
long-term disability. 

  

 32 









	 	(c)	If such Participant dies while still receiving long-term disability benefits and he has not claimed or accepted any retirement benefits under this Plan (including a Disability
Retirement Benefit), then any Automatic Preretirement Spousal Death Benefit payable to his surviving spouse shall be calculated (under Section 8.01) as though he had remained in Active Employment as a Salaried Plan Employee until his death, and
his Final Average Earnings will be determined as though he had continued to receive compensation at the rate of his Monthly Earnings in effect on the last day of Active Employment before long-term disability benefits began. 


 

	 	(d)	In all other cases such Participant shall be deemed for all purposes of the Plan to have incurred a Break in Employment at the end of his period of Active Employment.


  

	5.09	Cessation and Restoration of Accrued Benefits for Highly Compensated Employees 

 The Plan was amended on April 7, 1989, to provide that no Participant who is a Highly Compensated Employee within the meaning of Section 414(q)(1)(A) or (B) of the Code shall accrue any additional
benefit under the Plan on or after December 31, 1988 and on January 1, 1990, to provide that no other Participant who is a Highly Compensated Employee within the meaning of Section 414(q) of the Code shall accrue any additional
benefit under the Plan on or after January 1, 1990, to the extent that such additional benefit accruals exceed the benefit that would otherwise accrue in accordance with the terms of the Plan as subsequently amended to comply with the
qualification requirements described in IRS regulations Section 1.401(b)-1 (b)(2)(ii) (Tax Reform Act of 1986). During the period January 1, 1989, through August 31, 1991, any differential between the pension benefit otherwise payable
under the Plan and the benefit actually paid as a result of the foregoing suspension of benefit accrual was paid to retired Participants through the Beech Aircraft Corporation Excess Benefit Plan. 
 Effective September 1, 1991, Highly Compensated Employees who did not retire from the Plan during the period January 1, 1989, through
August 31, 1991, had their Accrued Benefit restored to the level which it would have attained had the suspension of benefit accruals not been placed in effect. With respect to Participants who retired on or after February 1, 1989, and
prior to September 1, 1991, the pension benefits payable as of September 1, 1991, and for subsequent months were restored to the amount which would have been payable if the suspension of benefit accruals had not been placed in effect. In
no event shall a Participant receive payment under the Plan for a benefit which has already been paid pursuant to the Beech Aircraft Corporation Excess Benefit Plan. 
  

 33 









	5.10	Commencement of Benefit Payments 

 The payment of benefits under the Plan shall commence no later than the sixtieth (60th) day after the close of the Plan Year in which the Participant either attains Normal Retirement Age or, if later, terminates service with the Employer.

  

 34 








 ARTICLE 6 
 Required Benefit Limitations 
  

	6.01	Code Section 415 Limits 

 (a) Notwithstanding
any other provisions of the Plan, in no event may that portion of Participant’s benefit paid in any one Limitation Year under this Plan and any other defined benefit plan maintained by the Affiliated Employers and not attributable under
Regulations of the Secretary of the Treasury or his delegate to benefits attributable to Participant contributions or benefits directly transferred to this Plan from another qualified plan, exceed the maximum permissible amount determined as an
amount Actuarially Equivalent to a benefit payable annually in the form of a straight life annuity (with no ancillary benefits) equal to the lesser of (1) or (2) below, where; 
 (1) is (i) for the first Limitation Year ending on or after January 1,1987, $90,000, and for each January thereafter through 2001 shall
automatically be adjusted as provided under Section 415(d) of the Code in such manner as the Secretary of the Treasury shall prescribe; and (ii) for the first Limitation Year ending on or after January 1, 2002, $160,000, and for each
January thereafter shall automatically be adjusted as provided under Section 415(d) of the Code in such manner as the Secretary of the Treasury shall prescribe. In each case, the adjusted limitation will apply to the Limitation Year ending
within the calendar year of he date of adjustment. The dollar limitation may be adjusted under subsections (b) and (c) if the retirement benefit commences before the Participant’s Social Security retirement date; and 
 (2) is 100% of the Participant’s average Compensation for the three (3) consecutive calendar years while participating in the Plan in which the
Participant’s Compensation was highest. 
 (b) For Limitation Years ending before January 1, 2002, if the retirement benefit
commences before the Participant’s Social Security retirement age but on or after the date the Participant reaches age sixty-two (62), the maximum annual benefit described in subsection (a)(1) shall be determined as follows: 
 (1) If a Participant was born before 1938, the dollar limitation for benefits commencing on or
after age 62 is determined by reducing the defined benefit dollar limitation by  5/9ths of one percent for each
month by which benefits commence before the month of the Participant’s Social Security retirement age; and 
  

 35 








 (2) If a Participant was born after 1937, the
dollar limitation for benefits commencing on or after age 62 is determined by reducing the defined benefit dollar limitation by  5/9ths of one percent for each of the first 36 months and  5/12ths of one percent for each
of the additional months (up to 24 months) by which benefits commence before the month of the Participant’s Social Security retirement age. 
 For Limitation Years ending after December 31, 2001, if the retirement benefit commences on or after the date the Participant reaches age sixty-two (62), the maximum annual benefit described in subsection (a)(1) shall not be reduced.

 (c) For all Limitation Years, if the retirement benefit under the Plan commences before age sixty-two (62), the maximum annual benefit
described in subsection (a)(1) determined at age sixty-two (62) as provided herein shall, in accordance with regulations issued by the Secretary of the Treasury, be reduced actuarially to the date the benefit commences, using an interest rate
of 7%. If the retirement benefit under the Plan commences (i) for Limitation Years ending before January 1, 2002 after the Participant’s Social Security retirement age, and (ii) for Limitation Years ending after December 31,
2001 after the Participant’s attains age 65, the benefit may not exceed the dollar limitation described in subsection (a)(1) actuarially adjusted to the date the benefit commences utilizing an interest rate assumption of 5%. For determinations
made after December 31, 1998, the mortality assumptions to be used in determining actuarial equivalence for purposes of this subsection (c) shall be taken from the “applicable mortality table” prescribed by the Secretary of the
Treasury pursuant to Section 417(e)(3)(A)(ii)(l) of the Code. 
 (d) If the Participant has less than ten (10) years of
participation in the Plan, the dollar limitation in subsection (a)(1) is reduced by one-tenth for each year of participation (or part thereof) less than ten (10). To the extent provided in regulations or in other guidance issued by the Internal
Revenue Service, the preceding sentence shall be applied separately with respect to each change in the benefit structure of the Plan. If the Participant has less than ten (10) years of service with the Affiliated Employers, the amount in
subsection (a)(2) is reduced by one-tenth for each year of service (or part thereof) less than ten (10). The adjustments contained herein shall be applied in the denominator of the defined benefit fraction described in subsection (g)(1) based upon
years of service. Years of service shall include future years occurring before the Participant’s Normal Retirement Date. Such future years shall include the year which contains the date the Participant reaches Normal Retirement Date, only if it
can be reasonably anticipated that the Participant will receive a year of service for such year. 
 (e) If the Participant’s benefit is
payable in a form other than a straight life annuity or a qualified joint and survivor annuity, the benefit shall be adjusted to an actuarial equivalent 

  

 36 








 
straight life annuity before applying the limitations of this Section 6.01. For determinations made before January 1, 1999, such actuarially
equivalent straight life annuity is equal to the annuity benefit computed using an interest rate of 7 percent (7%). For determinations made after December 31, 1998, except as otherwise provided in the next sentence, the actuarially equivalent
straight life annuity is equal to the greater of the annuity benefit computed using an interest rate of 7% and mortality assumptions described in Section 2(b) of Appendix A, and the annuity benefit computed using a 5 percent (5%) interest
rate assumption and the “applicable mortality table” defined in Section 417(e)(3)(A)(ii)(l) of the Code. In determining the actuarially equivalent straight life annuity for a benefit in the form of a lump sum, the “applicable
interest rate,” as defined in Section 417(e)(3)(A)(ii)(ll) of the Code, shall be substituted for “a 5 percent (5%) interest rate assumption” in the preceding sentence. 
 (f) (1) This subsection (1) shall apply to Limitation Years that begin before January 1, 2000. In the case of any Employee who is a
Participant in this Plan and in any defined contribution plan of the Affiliated Employers, the sum of the defined benefit plan fraction and the defined contribution plan fraction for any year shall not exceed 1.0. In the event the sum of such
fractions exceeds 1.0, the annual benefits under this Plan shall be reduced to the extent necessary so that the sum of such fractions determined with respect to the Employee does not exceed 1.0. 
 (2) This subsection (2) shall apply to Limitation Years that begin after December 31,1999 and shall apply only with respect to Participants who
have an Accrued Benefit on or after January 1, 2000. Except as otherwise provided herein, the Accrued Benefit of a Participant, including a Participant who is receiving benefits under this Plan, shall be increased as provided herein and in
accordance with Internal Revenue Service Notice 99-44 (and subsequent guidance). For this purpose, the benefit payable to any Participant who has commenced benefits under the Plan before January 1, 2000 in a form that is not subject to
Section 417(e)(3) of the Code shall be increased to the benefit that would have been permitted for any Limitation Year beginning on or after January 1, 2000 under this Section 6.01 if subsection (f)(1) had not limited the benefit at
the time of commencement. The benefit payable to any Participant who has commenced benefits under the Plan before January 1, 2000 in a form that is subject to Section 417(e)(3) of the Code shall be increased by an amount that is
Actuarially Equivalent to the amount of increase that could have been provided had the benefit been paid in the form of a straight life annuity. 
 (3) Notwithstanding subsection (f)(2), the Accrued Benefit of Participants who, prior to January 1, 2000, received benefit payments from either this Plan, the Raytheon 
  

 37 








 Excess Pension Plan, or from both plans (or the predecessor plans thereto), shall not be increased in excess of the
remaining payments that were scheduled to be made from both plans as of January 1, 2000. 
 (g) For purposes of applying the limitations
of subsection (f)(1), the following definitions shall apply: 
 (1) The term “defined benefit plan fraction” shall mean a fraction
the numerator of which is the projected annual benefit payable under this Plan and any other defined benefit plan of the Affiliated Employers (determined as of the close of the Limitation Year), and the denominator of which is the lesser of the
product of 125% multiplied by the dollar limitation in effect under Section 415(b)(1)(A) of the Code for such year, or the amount determined under subsection (a)(2) multiplied by 140%. 
 (2) the term “defined contribution plan fraction” shall mean the aggregate annual additions to all of the Affiliated Employers’ defined
contribution plans (whether or not terminated), including the annual additions attributable to any nondeductible employee contributions to any other defined benefit plans of the Affiliated Employers (whether or not terminated) determined as of the
close of the Limitation Year without regard to limitations on contributions over the sum of the lesser of the following amounts determined for such year and for each prior year of service with the Affiliated Employers: the dollar limitation
determined under Section 415(c)(1)(A) of the Code for such year (determined without regard to Section 415(c)(6) of the Code) multiplied by 125%, or 35% of the Participant’s Compensation determined for such year. 
 (h) If the benefit the Participant would otherwise accrue in a Limitation Year would produce an annual benefit in excess of the maximum permissible
amount provided in subsection (a), the rate of accrual will be reduced so that the annual benefit will equal the maximum permissible amount. 
 (i) (1) In no event shall a Participant’s maximum annual benefit allowable under this Section 6.01 be less than the greater of the following amounts: 
 (A) the Participant’s GATT old law benefit; or 
 (B) the Participant’s GATT old law benefit plus the portion of the Participant’s total benefit that exceeds the Participant’s GATT old law benefit (after application of the limitations otherwise
prescribed in this Section 6.01). 
 (2) For purposes of this Section 6.01(i), a Participant’s “GATT old law
benefit” is an amount equal to the Participant’s Accrued Benefit under the terms of the Plan as of December 31, 1998 (the “GATT freeze date”), for the Benefit Commencement Date and optional form and taking into account the
old law limitations. In determining the amount of a Participant’s 

  

 38 








 
GATT old law benefit, the following amounts shall be disregarded: (i) any Plan amendment increasing benefits adopted after the GATT freeze date, and
(ii) any cost of living adjustments that become effective after the GATT freeze date. A Participant’s GATT old law benefit is not increased after the GATT freeze date, but if the old law limitations, as applied as of a subsequent
determination date, are less than the limitations that were applied to determine the Participant’s GATT old law benefit on the GATT freeze date, then the Participant’s GATT old law benefit will be reduced in accordance with such reduced
limitations. If, at any date after the GATT freeze date, the Participant’s total Accrued Benefit, before the application of Section 415 of the Code, is less than the Participant’s GATT old law benefit, the GATT old law benefit will be
reduced to the Participant’s total Accrued Benefit. 
 (3) For purposes of this Section 6.01(i), the “old law
limitations” are the limitations of Section 415 of the Code, as in effect on December 7, 1994, including the participation requirements under Section 415(b)(5) of the Code. For all determinations using the old law assumptions, an
interest rate of 7 percent (7%) and the dollar limitation prescribed in Section 6.01(a)(1) shall be the amounts in effect as of the particular date of determination (the GATT freeze date or subsequent determination date, as applicable).
For purposes of determining a Participant’s GATT old law benefit, the old law limitations are applied using all Plan terms that were in effect on December 7, 1994 and that are relevant in determining actuarial equivalence under
Section 415(b)(2)(E) of the Code. For determinations made after the GATT freeze date, the old law limitations are applied using all applicable Plan terms in effect on the date of determination. 
 (j) The benefit increases resulting from the changes in Subsections 6.01(a)(1), (b) and (c) for Limitation Years ending after December 31,
2001, which reflect the amendments to Section 415(b) of the Code by the Economic Growth and Tax Relief Reconciliation Act of 2001 (“EGTRRA changes”), shall be provided to all current and former Participants who have an Accrued Benefit
under the Plan on or after December 31, 2001 (other than an Accrued Benefit resulting from a benefit increase solely as a result of the EGTRRA changes). Except as otherwise provided herein, the Accrued Benefit of a Participant, including a
Participant who is receiving benefits under this Plan, shall be increased as provided herein and in accordance with Internal Revenue Service Revenue Ruling 2001-51 (and subsequent guidance). For this purpose, the benefit payable to any Participant
who has commenced benefits under the Plan before January 1, 2002 in a form that is not subject to Section 417(e)(3) of the Code shall be increased to the benefit that would have been permitted for any Limitation Year ending on or after
January 1, 2002 under this Section 6.01 if the EGTRRA changes had been effective on the Benefit Commencement Date. The benefit payable 

  

 39 








 
to any Participant who has commenced benefits under the Plan before January 1, 2002 in a form that is subject to Section 417(e)(3) of the Code
shall be increased by an amount that is Actuarially Equivalent to the amount of increase that could have been provided had the benefit been paid in the form of a straight life annuity. 
  

	6.02	Restrictions on Twenty-Five Highest Paid Employees 

 (a) Restrictions of Benefits: In the event of Plan termination, the benefit hereunder of any highly compensated Employee and any highly compensated former Employee (as defined in Section 414(q) of the Code) is limited to a
benefit that is nondiscriminatory under Section 401(a)(4) of the Code. 
 (b) Restrictions on Distribution: The annual payments
to any “high-25” Employee (defined below) are restricted to an amount equal to the payments that would be made on behalf of the Employee under (i) a single life annuity that is the Actuarial Equivalent of the sum of the
Employee’s Accrued Benefit and the Employee’s other benefits under the Plan (other than a social security supplement), and (ii) any payments the Employee is entitled to receive under a social security supplement. The restrictions do
not apply, however if: 
  

	 	(1)	After payment to such Employee of all such benefits, the value of Plan assets equals or exceeds one hundred ten percent (110%) of the value of current liabilities (as defined
in Section 412(1)(7) of the Code), or 

  

	 	(2)	The value of such benefits for such an Employee is less than one percent (1%) of the value of such current liabilities, or 

  

	 	(3)	The value of such benefits for such an Employee does not exceed the dollar limitation under Section 411(a)(11)(A) of the Code. 

 (c) Employees Whose Benefits Are Restricted (High-25 Employees): The Employees for any given Plan Year whose benefits are restricted
(“high-25 Employees”) include the twenty-five (25) highest paid, for such Plan Year, of all highly compensated Employees and highly compensated former Employees (as defined under Section 414(q) of the Code). 
 (d) “Benefit” Defined: For purposes of the above restrictions, “benefit” includes, among other benefits, loans in excess of
the amounts set forth in Section 72(p)(2)(A) of the Code, any periodic income, any withdrawal values payable to a living Employee, and any death benefits not provided for by insurance on the Employee’s life. 
 (e) Value of Assets and Current Liabilities: For purposes of the above restrictions, the value of assets and current liabilities must be as of the
same date and the determination of current liabilities must be in accordance with Treasury Regulation 1.401(a)(4)-5(b). 
  

 40 








 ARTICLE 7 
 Vesting 
  

	7.01	General Rule 

 A Participant who incurs a Break in
Employment at a time when he is not entitled to an Early, Normal, Postponed or Disability Retirement Benefit under the provisions of Article 5 shall not be entitled to benefits under this Plan except as provided under the provisions of this Article.

  

	7.02	Vesting at Normal Retirement Age 

 A Participant who
has attained Normal Retirement Age shall be fully vested in his Accrued Benefit. 
  

	7.03	Vesting after Five Years of Vesting Service 

 A
Participant who incurs a Termination after completing five years of Vesting Service when he is not entitled to an Early, Normal, Postponed or Disability Retirement Benefit under the provisions of Article 5 shall be fully vested in his Accrued
Benefit and entitled to a Deferred Vested Benefit, payable as provided under Article 5. In addition, a Participant who incurred a Termination as a result of Raytheon Aerospace Company ceasing to be a Participating Employer under the Plan, as
provided in Section 1.47, shall be fully vested in his Accrued Benefit regardless of his years of Vesting Service. Furthermore, a Participant who incurred a Termination on February 1, 2002, and became employed by Computer Sciences
Corporation on February 2, 2002, shall be fully vested in his Accrued Benefit regardless of his years of Vesting Service. 
  

	7.04	Vesting for Non-Work-Related Disability 

 A
Participant who incurs a Total and Permanent Disability that is not a result of a work-related illness or an on-the-job injury while in Active Employment with the Employer and is not entitled to an Early, Normal, Postponed or Disability Retirement
Benefit or a Deferred Vested Benefit under the provisions of Article 5 shall be fully vested in his Accrued Benefit if he remains continuously disabled until he has attained Normal Retirement Age. 
  

	7.05	Vesting Upon Plan Termination 

 In the event of
termination or partial termination of this Plan, each affected Participant shall be 100% vested in his Accrued Benefit, but only to the extent funded. The foregoing sentence shall not apply to a former Participant who has been cashed out (including
those deemed cashed out under Section 2.06(b)) or who has incurred a five-year Period of Severance after his Severance from Service Date. Such a former Participant shall not be entitled to any additional vested benefit upon termination or
partial termination. 
  

 41 








 ARTICLE 8 
 Preretirement Survivor Benefits 
  

	8.01	Automatic Preretirement Spousal Death Benefit 

  

	 	(a)	Except as provided in Section 8.02 and in subparagraphs (b) and (c) below, in the event a Participant with a vested right to his Accrued Benefit under the Plan dies
before his Benefit Commencement Date, a death benefit shall be provided to the Participant’s spouse as follows: 

  

	 	(1)	If the Participant at the date of death was eligible to retire and receive a benefit under the Plan at an Early, Normal, Postponed or Disability Retirement Date, including early
commencement of a Deferred Vested Benefit, then his surviving spouse shall automatically receive a death benefit in an amount equal to one-half of the amount of retirement benefit which would have been payable to the spouse if the Participant had
retired on the day preceding his death, under whichever benefit provides the greatest amount, with payments in the form of a Qualified Joint and Survivor Annuity. 

  

	 	(2)	If the Participant at the date of death was not eligible to retire under the Plan and receive a benefit under the Plan at a Early, Normal, Postponed or Disability Retirement Date,
then the Participant’s surviving spouse shall receive an automatic spousal death benefit in an amount equal to the amount that would have been payable to the spouse under the normal form of payment under Section 9.01, assuming:


  

	 	(i)	the Participant had separated from service on the earlier of his Termination Date or date of his death, 

  

	 	(ii)	the Participant had survived to the earliest date he could have retired and received a benefit under the Plan pursuant to Article 5, 

  

	 	(iii)	the Participant retired on such date with a benefit in the form of a Qualified Joint and Survivor Annuity but calculated using only actual Credited Service as of the
Participant’s date of death, and 

  

	 	(iv)	the Participant died on the day after his Benefit Commencement Date. 

 The automatic preretirement spousal death benefit under this Section 8.01(a)(2) shall commence to be paid to the spouse, unless the spouse elects otherwise, as of the first day of the month coinciding with or


  

 42 








 
next following the earliest date the Participant could have retired and received a benefit under the Plan pursuant to Article 4, had he not died, and shall
be paid up to the first day of the month in which such spouse dies. The spouse may not delay commencement of the preretirement spousal death benefit beyond the Participant’s Normal Retirement date. 
  

	 	(b)	The automatic preretirement spousal death benefit payable under this Section 8.01 shall be payable after the death of the Participant only if the spouse had been married to the
Participant throughout the one-year period ending on the date of the Participant’s death. 

  

	 	(c)	If a Participant’s spouse qualifies for a death benefit under Section 8.01 and also qualifies for a death benefit under Section 8.02, then the benefit under this
Section 8.01 shall be payable only if the Actuarial Equivalent Value of such lifetime benefit is greater than the Actuarial Equivalent Value of the death benefit provided in Section 8.02 and not in addition to that death benefit. If the
benefit under Section 8.01 is greater, no benefit shall be payable under Section 8.02. 

  

	8.02	Death After Normal Retirement Date 

 Except as
provided in Section 8.01 and subparagraph (d) below, in the event a Participant who is eligible to retire and receive a Postponed Retirement Benefit under Section 5.03 dies before his Benefit Commencement Date during a period of
Active Employment with the Employer (or with an employer that is a Participating Employer in the Raytheon Aircraft Company Base Retirement Income Plan), a death benefit shall be provided to the Participant’s spouse or Beneficiary according to
the following provisions: 
  

	 	(a)	If the Participant has a spouse who is eligible for the Automatic Preretirement Spousal Death Benefit in Section 8.01 and has not elected another form of payment, the spouse
shall receive the benefit provided under Section 8.01. 

  

	 	(b)	If the Participant with the consent of his spouse, if any, has elected to have an optional form of retirement benefit under the provisions of Article 9 payable in the event of his
death white in Active Employment, the spouse or designated Beneficiary shall receive the benefit payments under such option as of the first day of the month following the Participant’s death. 

  

	 	(c)	If neither subparagraph (a) or (b) applies, or if the spouse or Beneficiary under subparagraph (b) predeceases the Participant, then a death benefit shall be paid as
if the Participant had elected the 10 Years Certain and Life Income Option under Section 9.05(b). 

  

 43 









	 	(d)	If a Participant’s spouse qualifies for a death benefit under Section 8.02 and also qualifies for a death benefit under Section 8.01, then the benefit under this
Section 8.02 shall be payable only if the Actuarial Equivalent Value of such benefit is greater than the Actuarial Equivalent Value of the death benefit provided in Section 8.01. 

  

	8.03	Additional Optional Death Benefit 

 In the event a
Participant who has made a valid election for coverage under this Section 8.03 dies after his coverage effective date during a period of Active Employment with the Employer (or with an employer that is a Participating Employer in the Raytheon
Aircraft Company Base Retirement Income Plan) and before his coverage discontinuance date, his eligible spouse will receive an “Additional Optional Death Benefit,” subject to the following: 
  

	 	(a)	The Additional Optional Death Benefit is an annuity payable monthly to the eligible spouse for life equal to 50% of the monthly benefit that the Participant would have been entitled
to receive if he had retired under the Qualified Joint and Survivor Annuity on the day before his death, except that such amount shall be reduced by the percentage factor described in subsection (h) for each year between the coverage effective
date and the coverage discontinuance date. 

  

	 	(b)	An “eligible spouse” under this section is the surviving spouse to whom a Participant has been married throughout the one-year period ending on the date of his death.


  

	 	(c)	The “coverage effective date” shall be the later of: (i) The date on which the Participant has both attained age 55 and completed five years of Credited Service, and
(ii) two years following the date on which the election for coverage is filed with the Employer. If the Participant dies due to accidental causes prior to the coverage effective date, but after he has both attained age 55 and completed five
years of Credited Service, and during the two-year election period, the coverage effective date shall be deemed to be the date he filed his election with the Employer. If a Participant’s coverage under this section has been discontinued as a
result of an event described in subsection (d), the Participant may elect to file a new election for coverage subject to all of the conditions described above. The two-year election period shall not apply for a Participant who elects coverage within
30 days of the date that he is notified of his option to resume coverage, if his prior coverage discontinuance date was the result of attainment of his Normal Retirement Date and there was no interruption in his period of Active Employment between
his Normal Retirement Date and January 1, 1991. 

  

 44 









	 	(d)	The “coverage discontinuance date” shall be the earliest of the following dates: 

  

	 	(1)	The effective date specified in a notice filed with the Employer to discontinue coverage under this section, which notice is subject to consent of the Participant’s spouse and
shall not be effective prior to the date it is received by the Employer. 

  

	 	(2)	If the coverage effective date and the Participant’s Normal Retirement Date occurred prior to January 1, 1991, the date on which he reached his Normal Retirement Date.


  

	 	(3)	The date of death of the Participant’s eligible spouse. 

  

	 	(4)	The date of the Participant’s divorce from his eligible spouse. 

  

	 	(5)	The date on which the Participant’s period of Active Employment is terminated. 

  

	 	(6)	The Participant’s Benefit Commencement Date. 

  

	 	(e)	If this option becomes effective, the benefits which are subsequently payable to the Participant, his eligible spouse, if any, or his contingent annuitant, if any, shall be reduced
by the percentage factor described in Appendix B for the period during which the option was in effect between the coverage effective date and the coverage discontinuance date. 

  

	 	(f)	In lieu of the monthly annuity provided under subsection (a), the surviving spouse may elect to receive the benefit under this section in a single payment that is the lump sum
Actuarial Equivalent of the monthly annuity. 

  

	 	(g)	The “election period” for purposes of this section shall commence two years and 90 days before the Participant has both attained age 55 and completed five years of
Credited Service and shall end on his Severance from Service Date. 

  

	 	(h)	When this option becomes effective, the Participant’s Accrued Benefit shall be reduced by the sum of the applicable percentage factors, as determined from the table in Appendix
B, for each year during which the coverage is in effect. The annual reduction factor shall be prorated for each month that coverage is in effect. 

  

	8.04	Limitation on Total Benefit 

 Notwithstanding any
provisions of the Plan to the contrary, the following limitations shall apply with respect to the benefits provided under the preceding sections of this Article 8. 
  

	 	(a)	 The sum of (1) whichever benefit is applicable under Section 8.01(a) or Section 8.02 and (2) the monthly benefit payable under
Section 8.03(a), shall not exceed 100% of the Participant’s “anticipated normal retirement benefit.” The “anticipated normal retirement benefit” is the benefit that would be payable to the Participant in the form of a
life annuity 



  

 45 









	 	 
at Normal Retirement Date if he had continued Credited Service and received compensation at the same rate of pay to his Normal Retirement Date, or to his
Postponed Retirement Date, if later. 


  

	 	(b)	For purposes of applying the limitation in subparagraph (a) the amount of monthly benefit provided in Section 8.03(a) shall be reduced to an amount which will prevent the
combined benefit under the preceding sections of Article 8 from exceeding the limitation described in subparagraph (a) above. 

  

 46 








 ARTICLE 9 
 Forms of Benefit 
  

	9.01	Qualified Joint and Survivor Annuity 

 At the
earliest time a Participant could become entitled to commence receiving payments of an Early, Normal, Postponed or Disability Retirement Benefit or of a Deferred Vested Benefit, other than lump sum payment under the provisions of Section 9.02,
benefits shall commence in the form of a Qualified Joint and Survivor Annuity (which, for a Participant, who has no spouse, includes a single life annuity), unless the Participant, with the consent of his spouse, if any, elects otherwise. Any
consent of the Participant’s spouse shall be made within 90 days of the date the Qualified Joint and Survivor Annuity would otherwise commence, and shall be executed in accordance with the rules of Section 9.04. 
  

	9.02	Lump Sum Payments 

  

	 	(a)	Involuntary Payment 

 If at any time on or after
December 13, 1993 a Participant has incurred a Termination but has not begun to receive benefit payments, and is entitled to a benefit (whether Early, Normal, or Postponed) or to a Deferred Vested Benefit, or a Beneficiary is entitled to a
death benefit hereunder, that has an Actuarial Equivalent Value of less than $3,500 (with such Actuarial Equivalent Value determined after taking into account any benefits transferred to this Plan under the provisions of Section 3.04), the
Actuarial Equivalent Value shall be paid to such Participant or Beneficiary in a lump sum in lieu of, and in full satisfaction of, his benefit under this Plan; provided that, with respect to distributions made on or after March 28, 2005, if the
Actuarial Equivalent Value of the benefit is greater than $1,000 but not greater than $3,500, then no such lump sum payment shall be made unless written consent is received from such Participant (no consent of a spouse or Beneficiary is required for
such lump sum payment. Upon the making of such payment, neither the Beneficiary, the Participant nor his spouse shall have any further benefit under this Plan. 
  

	 	(b)	Optional Payment 

 If the monthly pension payable to
a Participant as of the date when payments are to begin is $125 or less, the Participant may elect to receive the Actuarial Equivalent Value in a lump sum payment in lieu of, and in full satisfaction of, his benefit under this Plan. If the Actuarial
Equivalent Value exceeds $3,500, or the lump sum is made after pension payments have commenced, the Participant’s spouse must consent to the distribution in accordance with the requirements of Section 9.04. Upon making such payment,
neither the Beneficiary, the Participant nor his spouse shall have any further benefit under this Plan. 
  

 47 









	9.03	Right to Elect 

 In lieu of the benefits provided by
Section 9.01, the Participant shall have the right to elect, prior to his Benefit Commencement Date, an alternate form of benefit provided under the terms of this Article 9. If the Participant is married, any such election may be made only with
the consent of his spouse, executed as provided under Section 9.04. Any alternative form of benefit shall be the Actuarial Equivalent of the Participant’s Accrued Benefit. 
  

	9.04	Election of Forms 

 A Participant may make or revoke
an election of any form of benefit to which the Participant is entitled under this Article 9 in writing to the Employer, in accordance with rules established by the Committee, and such election or revocation shall be subject to the following
conditions: 
  

	 	(a)	The Employer shall furnish to each Participant a general written explanation in nontechnical terms of the availability of the various optional forms of payment under the Plan within
a reasonable period of time prior to the earliest date the Participant could retire under the Plan. A Participant has a right to receive, within 30 days after filing a written request with the Employer, a written explanation of the terms and
conditions of the Qualified Joint and Survivor Annuity and the financial effect upon the Participant, given in terms of dollars per annuity payment. Requests for additional information may be made by the Participant at any time before the 90th day
prior to the Benefit Commencement Date. 

  

	 	(b)	An election to receive an optional form of benefit may be made at any time during the election period. The election period is a period of 90 days prior to the Participant’s
Benefit Commencement Date. Subject to subparagraph (c) below, a Participant may make an electron not to receive the Qualified Joint and Survivor Annuity, revoke any previous election, and if the Participant so desires, make a new election,
until the expiration of the election period. 

  

	 	(c)	 If a Participant is married, an election of a form of benefit other than the Qualified Joint and Survivor Annuity will be permitted only if the following conditions
are satisfied: (i) the Participant’s spouse consents in writing to the election and the spouse’s consent is witnessed by a Plan representative or notary public; (ii) the Participant’s waiver and the spouse’s consent
specify the nonspouse beneficiary (including any class of beneficiaries or contingent beneficiaries) and the particular optional form of benefit neither of which 



  

 48 









	 	 
may be further modified (except back to a Qualified Joint and Survivor Annuity) without subsequent spousal consent (unless expressly permitted by the
spouse); and (iii) the spouse’s consent acknowledges the effect of the election. 


  

	9.05	Optional Forms of Retirement Benefit 

 The optional
forms which a Participant may elect are any one of the following: 
  

	 	(a)	Joint and Two-Thirds Survivor Annuity Option 

 An
Actuarial Equivalent monthly benefit payable to the Participant for the joint lifetimes of the Participant and the Joint Annuitant, and after the death of either party, two-thirds of such amount to the survivor for life. The Joint Annuitant may be
either the spouse of the Participant or a dependent son, daughter, mother or father who is completely disabled either mentally or physically. Should the Joint Annuitant die prior to the Participant’s Benefit Commencement Date, any election of
this option shall be automatically canceled. If the Participant should die prior to the Benefit Commencement Date, no payments shall be made under this option to the Joint Annuitant, but if the Joint Annuitant is the spouse of the Participant, such
spouse will be entitled to the death benefit provided under Article 8. 
  

	 	(b)	Years Certain and Life Income Option 

 An Actuarial
Equivalent monthly benefit which provides retirement benefit payments to the Participant for his lifetime with a guaranteed minimum period of either five years or ten years, as specified by the Participant prior to the Benefit Commencement Date. In
the event of the death of the Participant after the Benefit Commencement Date, but prior to the Participant’s receiving retirement benefit payments for the whole period certain, the remaining payments for the minimum term of years will be paid
to the Participant’s Beneficiary or, if the Beneficiary so elects, in an Actuarial Equivalent single sum payment. In the event of the death of the Participant prior to the Participant’s Benefit Commencement Date, the election of this
option shall be void and of no effect. 
  

	 	(c)	Straight Life Annuity Option 

 A Participant who has
a spouse may elect to have the Participant’s retirement benefit payable in equal unreduced monthly payments during the Participant’s lifetime, with no further payments to any other person after the Participant’s death. If this option
is elected, the retirement benefit payable to the Participant shall be the amount of retirement benefit determined under the applicable Section(s) of Article 5. 
  

	 	(d)	Joint and Two Thirds to Joint Annuitant Survivor Annuity Option 

 An Actuarial Equivalent monthly benefit payable to the Participant for the lifetime of the Participant, and after the death of the Participant, two thirds of such amount to the Joint 

  

 49 








 
Annuitant. The Joint Annuitant shall be an individual designated by the Participant at the time of election of such option. Should the Joint Annuitant die
prior to the Participant’s Benefit Commencement Date, any election of this option shall be automatically cancelled. Should the Joint Annuitant die after the Benefit Commencement Date, the benefit will continue to the Participant. If the
Participant should die prior to the Benefit Commencement Date, no payments shall be made under this option to the Joint Annuitant, but if the Joint Annuitant is the spouse of the Participant, such spouse may be entitled to the death benefit provided
under Article 8. 
  

	 	(e)	Joint and Three Quarters to Joint Annuitant Survivor Annuity Option 

 An Actuarial Equivalent monthly benefit payable to the Participant for the lifetime of the Participant, and after the death of the Participant, three quarters of such amount to the Joint Annuitant. The Joint Annuitant
shall be an individual designated by the Participant at the time of election of such option. Should the Joint Annuitant die prior to the Participant’s Benefit Commencement Date, any election of this option shall be automatically cancelled.
Should the Joint Annuitant die after the Benefit Commencement Date, the benefit will continue to the Participant. If the Participant should die prior to the Benefit Commencement Date, no payments shall be made under this option to the Joint
Annuitant, but if the Joint Annuitant is the spouse of the Participant, such spouse may be entitled to the death benefit provided under Article 8. 
  

	 	(f)	Limitation On Options 

 Notwithstanding any
provision of the Plan to the contrary, distributions pursuant to any optional form of payment provided under this section or pursuant to any other provision of the Plan shall be made in accordance with the requirements of Code Section 401(a)(9)
and regulations thereunder, including Regulation §1.401(a)(9)-2. Any provisions of the Plan that are inconsistent with Code Section 401(a)(9) and the regulations thereunder shall be deemed inoperative. 
  

	 	(g)	Additional Options for Domestic Partners 

 Effective
on and after January 1, 2002, a Participant who has a domestic partner may elect to receive his benefits in the form of the qualified joint and survivor annuity described in Section 9.01 or in the form of the joint and two-thirds survivor
annuity described in Section 9.05(a), with his domestic partner as the survivor or joint annuitant, as applicable. For this purpose, the term “domestic partner” means a person who is the same sex as the Participant and who is
considered a domestic partner of the Participant (or equivalent status) under the laws of the state in which the Participant resides, or would be considered a domestic partner of the Participant (or equivalent status) under the laws of the state in
which the Participant resides but for a provision of such state’s laws which prohibits the recognition of domestic partner status (or equivalent) solely because the two individuals are of the same sex. 
  

 50 









	9.06	Beneficiary 

 A Participant may name a Joint
Annuitant who is an individual for a Joint and Survivor Annuity option. For a years certain and life income option, the Participant may elect, in writing, an individual or individuals, or any entity or entities, including corporations, partnerships
or trusts, provided that such individuals and entities are ascertainable, and the shares of each are clearly set forth. In the event any beneficiary predeceases the Participant or is not in existence, not ascertainable, or not locatable at the date
benefits become payable to such beneficiary, benefits shall be paid to such contingent beneficiary or beneficiaries as shall have been named by the Participant on the Participant’s original beneficiary election, and, if none, the contingent
beneficiary shall be the Participant’s estate. 
  

	9.07	Eligible Rollover Distributions 

  

	 	(a)	This Section applies to distributions made on or after January 1, 1993. Notwithstanding any provision of the Plan to the contrary that would otherwise limit a
distributee’s election under this Section, a distributee may elect, at the time and in the manner prescribed by the Committee, to have any portion of an eligible rollover distribution paid directly to an eligible retirement plan specified by
the distributee in a direct rollover. 

  

	 	(b)	Definitions 

  

	 	(1)	Eligible rollover distribution 

 An eligible
rollover distribution is any distribution of all or any portion of the balance to the credit of the distributee, except that an eligible rollover distribution does not include: any distribution that is one of a series of substantially equal periodic
payments (not less frequently than annually) made for the life (or life expectancy) of the distributee or the joint lives (or joint life expectancies) of the distributee and the distributee’s designated beneficiary, or for a specified period of
ten years or more; any distribution to the extent such distribution is required under Section 401(a)(9) of the Code; and the portion of any distribution that is not includible in gross income (determined without regard to the exclusion for net
unrealized appreciation with respect to employer securities). 
  

	 	(2)	Eligible retirement plan 

 An eligible retirement
plan is an individual retirement account described in Section 408(a) of the Code, an individual retirement annuity described in Section 408(b) of the Code, an annuity plan described in Section 403(a) of the Code, or a qualified trust
described in Section 401(a) of the Code, that accepts the distributee’s eligible rollover distribution. However, in the case of an eligible 

  

 51 








 
rollover distribution to the surviving spouse, an eligible retirement plan is an individual retirement account or individual retirement annuity.
Notwithstanding the preceding provisions of this subsection (2), for distributions made after December 31, 2001, the following modifications shall apply: (i) the term “eligible retirement plan” shall also include an annuity
contract described in Section 403(b) of the Code and an eligible plan under Section 457(b) of the Code which is maintained by a state, political subdivision of a state, or any agency or instrumentality of a state or political subdivision
of a state and which agrees to separately account for amounts transferred into such plan from this Plan; and (ii) in the case of a direct rollover for the benefit of the surviving spouse of a Participant, or a spouse or former spouse who is the
alternate payee under a qualified domestic relations order, as defined in Section 414(p) of the Code, the term “Eligible Retirement Plan” shall include all of the plans and arrangements otherwise described in this subsection (2).

  

	 	(3)	Distributee 

 A distributee includes an employee or
former employee. In addition, the employee’s or former employee’s surviving spouse and the employee’s or former employee’s spouse or former spouse who is the alternate payee under a qualified domestic relations order, as defined
in Section 414(p) of the Code, are distributees with regard to the interest of the spouse or former spouse. 
  

	 	(4)	Direct rollover 

 A direct rollover is a payment by
the Plan to the eligible retirement plan specified by the distributee. 
  

 52 








 ARTICLE 10 
 Funding 
  

	10.01	Funding Agreement 

 The Plan Sponsor has entered
into a funding arrangement with one or more Funding Agents providing for the administration of the Fund or Funds in which the assets of this Plan are held. The Plan Sponsor may at any time or from time to time appoint one or more investment
managers, as defined under Section 3(38) of ERISA, each of which shall direct the Funding Agent in the investment or reinvestment of all or part of the Fund. 
  

	10.02	Non-Diversion of the Fund 

 To the extent required
by law, the principal or income of any Fund shall be used solely for the exclusive benefit of Participants or Beneficiaries, or to meet the necessary expenses of the Plan. 
  


 53 








 ARTICLE 11 
 Plan Administration 
  

	11.01	Appointment of Committee 

 A Committee consisting of
at least three (3) members shall be appointed by the president of Raytheon Aircraft Company to administer the Plan on behalf of the Plan Sponsor. Vacancies in the Committee shall be filled from time to time by appointment of a new Committee
member by the president. A member of the Committee shall hold office until he gives written notice of his resignation to the Board, until death, or until removal by the president. 
  

	11.02	Powers and Duties 

  

	 	(a)	The Committee shall have full power to administer the Plan and to construe and apply all of its provisions on behalf of the Employer. The Committee is the Named Fiduciary within the
meaning of Section 402(a) of ERISA for purposes of Plan administration. The Committee’s powers and duties, unless properly delegated, shall include, but shall not be limited to: 

  

	 	(1)	Designating agents to carry out responsibilities relating to the Plan, other than fiduciary responsibilities. 

  

	 	(2)	Deciding all questions of fact and law with respect to the Plan including, but not limited to, eligibility, continuity of employment and amounts of benefits.


  

	 	(3)	Deciding disputes that may arise with regard to the rights of Employees, Participants and their legal representatives, or Beneficiaries under the terms of the Plan. Decisions by the
Committee will be deemed final in each case. 

  

	 	(4)	Obtaining information from the Employer with respect to its Employees as necessary to determine the rights and benefits of Participants under the Plan. The Committee may rely
conclusively on such information furnished by the Employer. 

  

	 	(5)	Compiling and maintaining all records necessary for the Plan. 

  

	 	(6)	Authorizing the Funding Agent to make payment of all benefits as they become payable under the Plan. 

  

	 	(7)	Engaging such legal, administrative, consulting, actuarial, investment, accounting, and other professional services as the Committee deems proper. 

  

	 	(8)	 Adopting rules and regulations for the administration of the Plan that are not inconsistent with the Plan. The Committee may, in a nondiscriminatory manner, 



  

 54 









	 	 
waive the timing requirements of any notice or other requirements described in the Plan. Any such waiver will not obligate the Committee to waive any
subsequent timing or other requirements for other Participants. 


  

	 	(9)	Interpreting and approving Qualified Domestic Relations Orders. 

  

	 	(10)	Making non-substantive amendments for the purposes of maintaining the qualified status of the Plan only. 

  

	 	(11)	Performing other actions provided for in other parts of this Plan. 

  

	 	(b)	The Plan Sponsor shall have responsibility for, and shall be the Named Fiduciary for, the following purposes: 

  

	 	(1)	Selection of the funding media for the Plan, including the power to direct investments and to appoint an investment manager or managers pursuant to ERISA Section 402(c) and to
delegate all or a portion of such duties to Raytheon Company or the Committee. 

  

	 	(2)	Allocating fiduciary responsibilities, other than trustee responsibilities as defined in ERISA Section 405(c), among fiduciaries, and designation of additional fiduciaries.


  

	 	(3)	Selection of insurance contracts to provide benefits hereunder, or, if all assets are not held under insurance contracts, the Trustee. 

  

	 	(c)	The Trustee, if any, shall have responsibility for, and shall be the Named Fiduciary for the care and custody of, and, to the extent investment managers are not appointed by the
Employer, management of Plan assets held by such Trustee other than insurance contracts. 

  

	11.03	Actions by the Committee 

 A majority of the members
composing the Committee at any time will constitute a quorum. The Committee may act at a meeting, or in writing without a meeting, by the vote or assent of a majority of its members. The Committee will appoint a Committee Chairperson and a
Secretary. The Secretary will record all action taken by the Committee. The Committee will have authority to designate in writing one of its members or any other person as the person authorized to execute papers and perform other ministerial duties
on behalf of the Committee. 
  

	11.04	Interested Committee Members 

 No member of the
Committee will participate in an action of the Committee on a matter which applies solely to that member. Such matters will be determined by a majority of the remainder of the Committee. 
  

 55 









	11.05	Indemnification 

 The Employer, by the adoption of
this Plan, indemnifies and holds the members of the Committee, jointly and severally, harmless from the effects and consequences of their acts, omissions, and conduct in their official capacities, except to the extent that the effects and
consequences result from their own willful misconduct, breach of good faith, or gross negligence in the performance of their duties. The foregoing right of indemnification will not be exclusive of other rights to which each such member may be
entitled by any contract or other instrument or as a matter of law. 
  

	11.06	Conclusiveness of Action 

 Any action on matters
within the discretion of the Committee will be conclusive, final, and binding upon all Participants in the Plan and upon all persons claiming any rights, including Beneficiaries. 
  

	11.07	Payment of Expenses 

 The members of the Committee
will serve without compensation for their services. The compensation or fees of consultants, actuaries, accountants, counsel and other specialists and any other costs of administering the Plan or Fund, including any premiums due to the Pension
Benefit Guaranty Corporation (PBGC), will be paid by the Fund unless, at the discretion of the Employer, paid by the Employer. 
  

	11.08	Claim Procedure 

 Any Participant or Beneficiary may
submit a written application to the Committee for payment of any benefit that may be due him under the Plan. Such application shall set forth the nature of the claim and any information as the Committee may reasonably request. Upon receipt of any
such application, the Committee shall determine whether or not the Participant or Beneficiary is entitled to the benefit hereunder. If a claim is denied, in whole or in part, the Committee shall give written notice to any Participant or Beneficiary
of the denial of a claim for the commencement, continuation or calculation of amount of retirement benefits under the Plan. The notice shall be given within ninety (90) days after receipt of the Participant’s or Beneficiary application
unless special circumstances require an extension for processing the claim. In no event shall such extension exceed a period of ninety (90) days from the end of such initial review period. The notice will be delivered to the claimant or sent to
the claimant’s last known address, and will include the specific reason or reasons for the denial, a specific reference or references to pertinent Plan provisions on which the denial is based, a description of any additional material or
information for the claimant to perfect the claim, which will indicate why such material or information is needed, and an explanation of the Plan’s claims review 

  

 56 








 
procedure. If the claimant wishes to appeal the claim’s denial, the claimant or a duly authorized representative will file a written request with the
Committee for a review. This request must be made by the claimant within sixty (60) days after receiving notice of the claim’s denial. The claimant or representative may review pertinent documents relating to the claim and its denial, may
submit issues and comments in writing to the Committee and may request a hearing. Within sixty (60) days after receipt of such a request for review, the Committee shall reconsider the claim, and if the claimant shall have so requested, shall
afford the claimant or his representative a hearing before the Committee and make a decision on the merits of the claim. If circumstances require an extension of time for processing the claim, the sixty (60) day period may be extended but in no
event more than one hundred and twenty (120) days after the receipt of a request for review. The decision on review will be in writing and include specific reasons and references to the pertinent Plan provisions on which the decision is based.
Any adverse decision shall inform the claimant about the right to bring a civil action under the Employee Retirement Income Security Act of 1974 (ERISA). 
  

 57 








 ARTICLE 12 
 Funding Policy and Contributions 
  

	12.01	Employer Contributions 

 The Employer intends to
make contributions to fund this Plan at such times and in such amounts as the Actuary shall certify to the Employer as being no less than the amounts required to be contributed under Section 412 of the Code. Any actuarial gains arising under
the Plan shall be used to reduce future Employer contributions to the Plan and shall not be applied to increase retirement benefits with respect to remaining Participants. 
  

	12.02	Participant Contributions 

 Participant
contributions to the Fund are not permitted. 
  

	12.03	Contingent Nature of Contributions 

 Unless the
Employer notifies the Committee and the Funding Agent in writing to the contrary, all contributions made to this Plan are conditioned upon their deductibility under Section 404 of the Code. 
  

 58 








 ARTICLE 13 
 Amendment, Termination and Merger of the Plan 
  

	13.01	Right to Amend the Plan 

 The Plan Sponsor reserves
the right to modify, alter or amend this Plan from time to time to any extent that it may deem advisable including, but without limiting the generality of the foregoing, any amendment deemed necessary to ensure the continued qualification of the
Plan under Section 401 of the Code or the appropriate provisions of any subsequent revenue law. The procedure for the Plan Sponsor to amend the Plan in any respect is approval of the amendment by a majority of the members of the Plan
Sponsor’s Board of Directors and with respect to non-substantive matters for purposes of maintaining the qualified status of the Plan is by a majority of the members of the Committee. Action by the Board of Directors or the Committee amending
the Plan shall be a settlor function of the Plan Sponsor and not a fiduciary function of the Board of Directors or the Committee. No such amendment shall increase the duties or responsibilities of a Funding Agent without its consent thereto in
writing. No such amendment(s) shall have the effect of reinvesting in the Employer the whole or any part of the principal or income of the Fund or to allow any portion of the principal or income of the Fund to be used for any purposes other than for
the exclusive benefit of Participants or Beneficiaries at any time prior to the satisfaction of all the liabilities under the Plan with respect to such persons. No amendment shall (a) reduce a Participant’s Accrued Benefit on the effective
date of the Plan amendment, (b) eliminate or reduce an early retirement benefit, retirement-type subsidy or an optional form of benefit under the Plan with respect to the Participant’s Accrued Benefit on the date of the amendment,
(c) reduce a retired Participant’s retirement benefit as of the effective date of the amendment, or (d) directly or indirectly reduce the nonforfeitable percentage of a Participant’s right to his or her Accrual Benefit to an
amount less than the nonforfeitable percentage computed under the Plan without regard to the amendment. 
  

	13.02	Right to Terminate the Plan 

 The Plan Sponsor shall
have the right to terminate this Plan at any time with respect to itself, any or all other Participating Employers or any designated group of Employees, former Employees or Beneficiaries. The procedure for the Plan Sponsor to terminate the Plan is
approval of the termination by a majority of the members of the Plan Sponsor’s Board of Directors. Action by the Board of Directors terminating the Plan shall be a settlor function of the Plan Sponsor and not a fiduciary function of the Board
of Directors. In the event of such termination all affected Participants shall be vested as provided in Section 7.05. 
  

 59 









	13.03	Allocation of Assets and Surplus 

 In the event the
Plan shall be terminated as provided in Section 13.02 above, the then present value of retirement benefits vested in each Participant shall be determined as of the discontinuance date, and the assets then held by the Funding Agents as reserves
for benefits for Participants, Joint Annuitants or Beneficiaries under this Plan shall, subject to any necessary approval by the Pension Benefit Guaranty Corporation, be allocated, to the extent that they shall be sufficient, after providing for
expenses of administration, in the order of precedence provided for under Section 4044 of ERISA, as modified by the provisions of IRS regulations 1.414(l)-1(f) or (h) if a special schedule of benefits (as defined in such regulations) is in
effect as a result of a plan merger within the five year period prior to the date of termination. The retirement benefits for which funds have been allocated in accordance with Section 4044 of ERISA shall be provided through the continuance of
the existing Fund arrangements or through a new instrument entered into for that purpose and shall be paid either in a lump sum or in equal monthly installments through the purchase of a nontransferable annuity contract(s). After all liabilities of
the Plan have been satisfied with respect to all Participants so affected by the Plan’s termination, the Funding Agent shall distribute any balance of Plan assets which shall remain to Participants in the proportion that each Participant’s
liability bears to the total liability of all Participants. 
  

	13.04	Plan Mergers, Consolidations and Transfers 

 The
Plan shall not be automatically terminated by the Employer’s acquisition by or merger into any other company, trade or business, but the Plan shall be continued after such merger provided the successor employer agrees to continue the Plan with
respect to affected Participants herein. All rights to amend, modify, suspend or terminate the Plan with respect to Participants of the Employer shall be transferred to the successor employer, effective as of the date of the merger or acquisition.
The merger or consolidation with, or transfer of the allocable portion of the assets and liabilities of the Fund to any other qualified retirement plan trust shall be permitted only if the benefit each Plan Participant would receive, if the Plan
were terminated immediately after such merger or consolidation, or transfer of the allocable portion of the assets and liabilities, would be at least as great as the benefit he would have received had this Plan been terminated immediately before the
date of merger, consolidation or transfer. 
  

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	13.05	Amendment of Vesting Schedule 

 If the vesting
provisions of this Plan are amended, including an amendment caused by the expiration of top-heavy status under the terms of Article 14, Participants with three (3) or more Years of Service, or three (3) or more years of employment, whether
or not consecutive, at the later of the date the amendment is adopted or becomes effective, shall automatically be vested, from that point forward, in the greater of the amount vested under the vesting schedule as amended or the amount vested under
the vesting schedule prior to amendment. 
  

 61 








 ARTICLE 14 
 Top-Heavy Plan Provisions 
  

	14.01	General Rule 

 For any Plan Year for which this Plan
is a “Top-Heavy Plan” as defined in Section 14.06 below, this Plan shall be subject to the provisions of this Article 14. 
  

	14.02	Vesting Provision 

 Each Participant who has
completed an Hour of Service during the Plan Year in which the Plan is top-heavy and has completed the number of Years of Vesting Service specified in the following table, shad have a vested right to the percentage of his Accrued Benefit under this
Plan, correspondingly shown in the following table: 
  

			
	 Years of Vesting Service
	 	 Percentage of Accrued Benefit

	 Less than 2 years
	 	    0%
	 2
	 	  20%
	 3
	 	  40%
	 4
	 	  60%
	 5
	 	  80%
	 6 or more
	 	100%

 Each Participant’s Deferred Vested Benefit shall not be less than his vested Accrued Benefit
determined as of the last day of the last Plan Year in which the Plan was not a Top-Heavy Plan. If the Plan ceases to be a Top-Heavy Plan, an Employee with three or more years of employment, whether or not consecutive, shall have his Deferred Vested
Benefit determined either in accordance with this Section 14.02 or Section 7.03, as provided in Section 13.05. Each such Participant shall have the right to elect the applicable schedule within 60 days after the day he is issued
written notice by the Committee, or as otherwise provided in accordance with regulations issued under the provisions of the Code relating to changes in the vesting schedule. 
  

	14.03	Minimum Benefit Provision 

 If the Plan is a
Top-Heavy Plan in any Plan Year, each Participant who is a Non-Key Employee shall, as of the end of that Plan Year, be entitled to an Accrued Benefit that is at least equal to the Applicable Percentage of the Participant’s Average Compensation
for Years in the Testing Period. For purposes of this Section: 
  

	 	(a)	“Applicable Percentage” shall mean the lesser of two (2) percent multiplied by Years of Service of the Participant, or twenty (20) percent;


  

 62 









	 	(b)	“Average Compensation for Years in the Testing Period” shall mean average annual earnings for that period of five (5) consecutive years that produces the highest
average. In determining consecutive years, any year not included as a Year of Vesting Service under the provisions of Article 2 shall be ignored. In calculating Average Compensation for Years in the Testing Period, the amount of compensation taken
into account shall not exceed $200,000 times the Adjustment Factor applicable at the date such benefits are calculated. 

  

	14.04	Change in 415(e) Limits 

 If the Plan is a Top-Heavy
Plan the combined plan limit of Section 415(e) of the Code shall be applied by substituting “1.0” for “1.25” in Code Sections 415(e)(2)(b) and 415(e)(3)(b). The first sentence of this Section 14.04 will not apply if the
Plan is not a Super Top-Heavy Plan, as defined in Section 14.06, and if the Accrued Benefit of each Participant would meet the requirements of Section 14.03 if the Applicable Percentage under that Section were the lesser of (a) or
(b) where: 
  

	 	(a)	is three (3) percent multiplied by Years of Service 

  

	 	(b)	is twenty (20) percent increased by one (1) percent for each year the Plan was subject to the change in 415(e) limits under this Section 14.04, but not to more than
30 percent. 

  

	14.05	Coordination with Other Plans 

 In the event that
another defined contribution or defined benefit plan maintained by the Employer or an Affiliated Employer provides contributions or benefits on behalf of Participants in this Plan, such other plan shall be treated as part of this Plan pursuant to
applicable principles (such as Rev. Rul. 81-202 or any successor ruling) in determining whether this Plan satisfies the requirements of Sections 14.02 and 14.03. Such determination shall be made upon the advice of counsel by the Committee.

  

	14.06	Top-Heavy and Super Top-Heavy Plan Definition 

 This
Plan shall be a “Top-Heavy Plan” for any Plan Year if, as of the determination date (as defined in subsection 14.06(a)) the present value of the cumulative Accrued Benefits under the Plan for Participants (including former Participants)
who are Key Employees (as defined in Section 14.07) exceeds sixty (60) percent of the present value of the cumulative Accrued Benefits under the Plan for all Participants, excluding former Key Employees, or if this Plan is required to be
in an aggregation group (as defined in Section 14.06(c)) which for such Plan Year is a top-heavy group (as defined in Section 14.06(d)). This Plan shall be a “Super Top-Heavy Plan” for any Plan Year if it meets the above
definition after substituting “ninety (90) percent” for “sixty (60) percent.” For purposes of this Section: 
  

	 	(a)	“Determination date” means for any Plan Year the last day of the immediately preceding Plan Year (except that for the first Plan Year of this Plan the determination date
means the last day of such Plan Year). 

  

 63 









	 	(b)	The present value shall be determined as of the most recent valuation date (the date on which liabilities and assets are valued for purposes of determining plan costs for minimum
funding) that is within the twelve (12)-month period ending on the determination date. Present values for purposes of determining whether this Plan is a Top-Heavy Plan shall be based on the following interest and mortality rates:


  

	 	(1)	Interest Rate: 7% 

  

	 	(2)	Mortality Rate: 1971 Group Annuity Mortality Table, male rates, with one year age setback 

  

	 	(c)	“Aggregation group” means the group of plans, if any, that includes both the group of plans that are required to be aggregated and the group of plans that are permitted to
be aggregated. 

  

	 	(1)	The group of plans that are required to be aggregated (the “required aggregation group”) includes: 

  

	 	(i)	Each plan of an Affiliated Employer in which a Key Employee is a participant, including collectively bargained plans. 

  

	 	(ii)	Each other plan, including collectively bargained plans of an Affiliated Employer, which enables a plan in which a Key Employee is a participant to meet the requirements of the Code
prohibiting discrimination as to contributions or benefits in favor of employees who are officers, shareholders or the highly compensated or prescribing the minimum participation standards. 

  

	 	(2)	The group of plans that are permitted to be aggregated (the “permissive aggregation group”) includes the required aggregation group plus one or more plans of an Affiliated
Employer that is not part of the required aggregation group. Such plan or plans may be added to the permissive aggregation group only if, after the addition, the aggregation group as a whole continues to satisfy the requirements of Sections
401(a)(4) and 410 of the Code. 

  

	 	(d)	 “Top-heavy group” means the aggregation group, if as of the applicable determination date, the sum of the present value of the cumulative accrued benefits
for Key Employees under all defined benefit plans included in the aggregation group plus the aggregate of the accounts of key employees under all defined contribution plans included in the aggregation group 



  

 64 









	 	 
exceeds sixty percent (60%) of the sum of the present value of the cumulative accrued benefits for all Employees, excluding former Key Employees, under
all such defined benefit plans plus the aggregate accounts for all Employees, excluding former Key Employees, under such defined contribution plans. If the aggregation group that is a top-heavy group is a required aggregation group, each plan in the
group will be top heavy. If the aggregation group that is a top-heavy group is a permissive aggregation group, only those plans that are part of the required aggregation group will be treated as top-heavy. If the aggregation group is not a top-heavy
group, no plan within such group will be top-heavy. 


  

	 	(e)	In determining whether this Plan constitutes a “Top-Heavy Plan,” the Committee (or its agent) shall make the following adjustments in connection therewith:


  

	 	(1)	When more than one plan is aggregated, the Committee shall determine separately for each plan as of each plan’s determination date the present value of the accrued benefits or
account balance. The results shall then be aggregated by adding the results of each plan as of the determination dates for such plans that fall within the same calendar year. 

  

	 	(2)	For Plan Years beginning before January 1, 2002, in determining the present value of the cumulative accrued benefit or the amount of the account of any Employee, such present
value or account shall include the amount in dollar value of the aggregate distributions made to such Employee under the applicable plan during the five-year period ending on the determination date, unless reflected in the value of the accrued
benefit or account balance as of the most recent valuation date. For Plan Years beginning after December 31, 2001, in determining the present value of the cumulative accrued benefit or the amount of the account of any Employee, such present
value or account shall include the amount in dollar value of the aggregate distributions made to such Employees under the applicable plan during the one-year period ending on the determination date. The preceding sentence shall also apply to
distributions under a terminated plan which, had it not been terminated, would have been aggregated with the Plan under Section 416(g)(2)(A)(i) of the Code. In the case of a distribution made for a reason other than separation from service,
death, or disability, the second sentence in this subsection (2) shall be applied by substituting “five-year period” for “one-year period.” 

  

	 	(3)	Further, in making such determination, such present value or such account shall include any rollover contribution (or similar transfer), as follows: 

  

	 	(i)	If the rollover contribution (or similar transfer) is initiated by the employee and made to or from a plan maintained by another employer, the plan providing the distribution shall
include such distribution in the present value or such account; the plan accepting the distribution shall not include such distribution in the present value or such account unless the plan accepted it before December 31, 1983.


  

 65 









	 	(ii)	If the rollover contribution (or similar transfer) is not initiated by the employee or made from a plan maintained by another employer, the plan accepting the distribution shall
include such distribution in the present value or such account, whether the plan accepted the distribution before or after December 31, 1983; the plan making the distribution shall not include the distribution in the present value or such
account. 

  

	 	(4)	Further, in making such determination, in any case where an individual is a “non-key employee,” as defined in Section 14.08 with respect to an applicable plan, but
was a key employee with respect to such plan for any prior plan year, any accrued benefit and any account of such employee shall be altogether disregarded. For this purpose, to the extent that a key employee is deemed to be a key employee if he met
the definition of key employee within any of the four preceding plan years, this provision shall apply following the end of such period of time. 

  

	14.07	Key Employee 

 (a) For Plan Years beginning after
December 31, 2001, the term “Key Employee” means any Employee or former Employee (including any deceased Employee) who at any time during the Plan Year that includes the determination date was an officer of one of the Adopting
Employers having annual compensation for the Plan Year greater than one hundred thirty thousand dollars ($130,000) (as adjusted under Section 416(i)(l) of the Code for Plan Years beginning after December 31, 2002), a five percent
(5%) owner of one of the Adopting Employers, or a one percent (1%) owner of one of the Adopting Employers having annual compensation of more than one hundred fifty thousand dollars ($150,000). The determination of who is a Key Employee
will be made in accordance with Section 416(i)(l) of the Code and the applicable regulations and other guidance of general applicability issued thereunder. 
 (b) For Plan Years beginning before January 1, 2002, the term “Key Employee” means any Employee or former Employee under this Plan who, at any time during the Plan Year containing the
determination date or during any of the four preceding Plan Years, is or was one of the following: 
  

 66 








 (1) An officer of the Employer having annual compensation greater than fifty percent (50%) of the
amount in effect under Section 415(b)(1)(A) of the Code for such Plan Year. Whether an individual is an officer shall be determined by the Committee on the basis of all the facts and circumstances, such as an individual’s authority, duties
and term of office, not on the mere fact that the individual has the title of an officer. For any such Plan Year, there shall be treated as officers no more than the lesser of: 
  

	 	(i)	50 Employees, or 

  

	 	(ii)	the greater of three Employees or 10 percent of the Employees. 

 For this purpose, the highest paid officers shall be selected. 
 (2) One of the ten Employees owning (or considered as owning,
within the meaning of the constructive ownership rules of the Code) the largest interests in an Affiliated Employer. An Employee who has some ownership interest is considered to be one of the top ten owners unless at least ten other Employees own a
greater interest than the Employee. However, an Employee will not be considered a top ten owner for a plan year if the Employee earns less than the amount in effect under Code Section 415(c)(1)(A) as in effect for the calendar year in which the
determination date falls. 
 (3) Any person who owns (or is considered as owning within the meaning of the constructive ownership rules of
the Code) more than five percent of the outstanding stock of an Affiliated Employer or stock possessing more than five percent of the combined total voting power of all stock of the employer. 
 (4) A one percent owner of an Affiliated Employer having an annual compensation from the Employer of more than $150,000, and possessing more than five
percent of the combined total voting power of all stock of an Affiliated Employer. For purposes of this section, compensation means compensation as defined in Section 415 of the Code. 
 For purposes of parts (1), (2), (3) and (4) of this definition, a beneficiary of a Key Employee shall be treated as a Key Employee. For
purposes of parts (3) and (4), each Affiliated Employer is treated separately in determining ownership percentages; but, in determining the amount of compensation, each Affiliated Employer is taken into account. 
  

	14.08	Non-Key Employee 

 The term “Non-Key
Employee” means any Participant who is not a Key Employee. 
  

	14.09	Collective Bargaining Rules 

 The provisions of
Sections 14.02, 14.03 and 14.04 do not apply with respect to any Employee included in a unit of Employees covered by a collective bargaining agreement unless the application of such sections has been agreed upon with the collective bargaining agent.

  

 67 








 ARTICLE 15 
 Miscellaneous 
  

	15.01	Limitation on Distributions 

 Notwithstanding any
provision of this Plan regarding payment to Beneficiaries or Participants, or any other person, the Committee may withhold payment to any person if the Committee determines that such payment may expose the Plan to conflicting claims for payment. As
a condition for any payments, the Committee may require such consent, representations, releases, waivers or other information as it deems appropriate. The Committee may, in its discretion, comply with the terms of any judgment or other judicial
decree, order, settlement or agreement including, but not limited to, a Qualified Domestic Relations Order as defined in Code Section 414(p). 
  

	15.02	Limitation on Reversion of Contributions 

 Except as
provided in subsections (a) through (c) below, Employer contributions made under the Plan will be held for the exclusive benefit of Participants, Joint Annuitants or Beneficiaries and may not revert to the Employer. 
  

	 	(a)	A contribution made by the Employer under a mistake of fact may be returned to the Employer within one (1) year after it is contributed to the Plan, to the extent that it
exceeds the amount which would have been contributed, absent the mistake in fact. 

  

	 	(b)	A contribution conditioned on the Plan’s initial qualification under Sections 401(a) and 501(a) of the Code may be returned to the Employer, if the Plan does not
qualify, within one (1) year after the date the Plan is denied qualification. 

  

	 	(c)	A contribution conditioned upon its deductibility under Section 404 of the Code, may be returned, to the extent the deduction is disallowed, to the Employer within one
(1) year after the disallowance. 

 Earnings attributable to amounts which may be returned to the Employer pursuant to
this Section may not be distributed, but, in the event that there are losses attributable to such amounts, the amount returned to the Employer shall be reduced by the amount of such losses. 
  

	15.03	Voluntary Plan 

 The Plan is purely voluntary on the
part of the Employer and neither the establishment of the Plan nor any Plan amendment nor the creation of any fund or account, nor the payment of any benefits will be construed as giving any Employee or any person legal or equitable right against
the Employer, any trustee or other Funding Agent, or the Committee unless specifically 

  

 68 








 
provided for in this Plan or conferred by affirmative action of the Committee or the Employer according to the terms and provisions of this Plan. Such
actions will not be construed as giving any Employee or Participant the right to be retained in the service of the Employer. All Employees and/or Participants will remain subject to discharge to the same extent as though this Plan had not been
established. 
  

	15.04	Nonalienation of Benefits 

 Participants and
Beneficiaries are entitled to all the benefits specifically set out under the terms of the Plan, but neither those benefits nor any of the property rights in the Plan are assignable or distributable to any creditor or other claimant of a Participant
or Beneficiary. A Participant will not have the right to anticipate, assign, pledge, accelerate, or in any way dispose of or encumber any of the monies or benefits or other property that may be payable or become payable to such Participant or his
Beneficiary provided, however, the Committee shall recognize and comply with a valid Qualified Domestic Relations Order as defined in Code Section 414(p). Notwithstanding the foregoing, effective August 5, 1997, a Participant’s
benefits under this Plan can be used to satisfy an amount that the Participant is ordered or required to pay to the Plan to the extent permitted by Code Section 401(a)(13)(C), which generally applies if such order or requirement to pay arises
(i) under a judgment of conviction for a crime involving the Plan, (ii) under a civil judgment (including a consent order or decree) entered in an action brought in connection with a violation (or alleged violation) of the ERISA fiduciary
responsibility provisions, or (iii) pursuant to a settlement agreement between the Secretary of Labor and the Participant, or a settlement agreement between the Pension Benefit Guaranty Corporation and the Participant, in connection with a
violation (or alleged violation) of the ERISA fiduciary responsibility provisions. 
  

	15.05	Inability to Receive Benefits 

 If the Committee
receives evidence that a person entitled to receive any payment under the Plan is physically or mentally incompetent to receive payment and to give a valid release, and another person or any institution is maintaining or has custody of such person,
and no guardian, committee, or other representative of the estate of such person has been duly appointed by a court of competent jurisdiction, then any distribution made under the Plan may be made to such other person or institution. The release of
such other person or institution will be a valid and complete discharge for the payment of such distribution. 
  

	15.06	Missing Persons 

 If the Committee is unable, after
reasonable and diligent effort, to locate a Participant, Joint Annuitant, or Beneficiary where no contingent beneficiary is provided under the Plan, who 

  

 69 








 
is entitled to a distribution under the Plan, the distribution due such person will be forfeited after five (5) years. If, however, such a person later
files a claim for such benefit, it will be reinstated without any interest earned thereon. In the event that a distribution is due to a Beneficiary where a contingent beneficiary is provided under the Plan (including the situation on which the
contingent beneficiary is the Participant’s estate), and the Committee is unable, after reasonable and diligent effort, to locate the Beneficiary, the benefit shall be payable to the contingent beneficiary, and such non-locatable Beneficiary
shall have no further claim or interest hereunder. Notification by certified or registered mail to the last known address of the Participant or Beneficiary will be deemed a reasonable and diligent effort to locate such person. 
  

	15.07	Limitation of Third Party Rights 

 Nothing expressed
or implied in the Plan is intended or will be construed to confer upon or give to any person, firm, or association other than the Employer, the Participants or Beneficiaries, and their successors in interest, any right, remedy, or claim under or by
reason of this Plan except pursuant to a Qualified Domestic Relations Order as defined in Code Section 414(p). 
  

	15.08	Invalid Provisions 

 In case any provision of this
Plan is held illegal or invalid for any reason, the illegality or invalidity will not affect the remaining parts of the Plan. The Plan will be construed and enforced as if the illegal and invalid provisions had never been included. 
  

	15.09	One Plan 

 This Plan may be executed in any number
of counterparts, each of which will be deemed an original and the counterparts will constitute one and the same instrument and may be sufficiently evidenced by any one counterpart. 
  

	15.10	Use and Form of Words 

 Whenever any words are used
herein in the masculine gender, they will be construed as though they were also used in the feminine gender in all cases where that gender would apply, and vice versa. Whenever any words are used herein in the singular form, they will be construed
as though they were also used in the plural form in all cases where the plural form would apply, and vice versa. 
  

	15.11	Headings 

 Headings to Articles and Sections are
inserted solely for convenience and reference, and in the case of any conflict, the text, rather than the headings, shall control. 
  

 70 









	15.12	Governing Law 

 The Plan will be governed by and
construed according to the federal laws governing employee benefit plans qualified under the Code and according to the laws of the state of Kansas where such laws are not in conflict with the federal laws. 
  

 71 








 ARTICLE 16 
 Special Eligibility Rules 
  

	16.1	Applicability 

 This Article is effective
January 1, 2007 (except section 16.4 of this Article is effective March 1, 2007), and supersedes all other provisions of this Plan, including any provisions that purport to apply notwithstanding any other provisions of the Plan, unless
such provisions specifically refer to this Article. 
  

	16.2	Special Eligibility Rules 

 A person who first
performs an Hour of Service on or after January 1, 2007, shall not be eligible to participate in this plan. 
 A person who incurs a
Separation from Service, and next performs an Hour of Service on or after January 1, 2007, after expiration of any salary continuation payments, shall not be eligible to participate in this plan. Such a person’s benefit shall be the
accrued benefit determined as of the date (the “Benefit Determination Date”) that is the earlier of (i) the date immediately before the date on which the person performs an Hour of Service following the person’s most recent
Separation from Service, and (ii) the date on which the person stopped earning a benefit under the plan. That accrued benefit will be the pension defined in the plan as having been earned as of the Benefit Determination Date, and will be based
on all factors relevant under the plan as they exist on the Benefit Determination Date (including age, earnings, eligibility for early retirement, credited service or plan membership, estimated Social Security benefit, minimum benefit level, and any
other personal or plan factors affecting the pension in its standard form). Service after the Benefit Determination Date will be counted, to the extent provided in the relevant provisions of the pension plan, only for determining vesting,
eligibility for early retirement, and eligibility for any retirement subsidies. 
 A person who (i) first performs an Hour of Service
before January 1, 2007, and either (ii) does not incur a Separation from Service, or (iii) incurs a Separation from Service but then performs an Hour of Service before expiration of any salary continuation payments, shall again be
eligible to participate in this plan, subject to the other provisions of the plan. 
  

	16.3	Definitions 

 When used in this Article, the
following terms have the following meaning: 
 Separation from Service. The termination of
employment by reason of quit (including Retirement), discharge, Layoff (beyond the period of eligible recall pursuant to a collective bargaining agreement) or death; or the failure to return from Authorized Leave of Absence, Qualified Military
Service or Disability. 
  

 72 








 Authorized Leave of Absence. An absence approved by an Employer on a
uniform and nondiscriminatory basis for any of the following reasons: illness of an Employee or a relative, the death of a relative, education of the Employee, or personal or family business of an extraordinary nature, provided in each case that the
Employee returns to the service of the Employer within the time period specified by the Employer. 
 Disability. A Participant who is totally and permanently disabled by bodily injury or disease so as to be prevented from engaging in any occupation for compensation or profit. The determination of Disability shall be
made by the Administrator with the aid of competent medical advice. It shall be based on such evidence as the Administrator deems necessary to establish Disability or the continuation thereof. 
 Layoff. An involuntary interruption of service due to reduction of work force with the possibility of recall to
employment when conditions warrant. 
 Qualified Military Service. Any service in the uniformed services
by any Employee if such Employee is entitled to reemployment rights under Chapter 43 of title 38, United States Code, provided, the Employee returns to employment, with the Employer within the applicable time limits prescribed in Chapter 43 of title
38, United States Code. 
 Retirement. A termination of employment that occurs after a Participant has
either attained age 55 and completed at least ten (10) years or periods of service, as determined under the plan, or reached age 65. 
  

	16.4	Pension Plan Distributee 

 A Pension Plan
Distributee shall not be eligible to participate in this plan. “Pension Plan Distributee” means a person who incurred a Separation from Service, becomes an Employee again on or after March 1, 2007, and is receiving or has ever
received a distribution from a Pension Plan, regardless of whether the person met or meets the age and service conditions for retirement under the Pension Plan, and regardless of the form of benefit selected by the person. “Pension Plan”
means a defined benefit pension plan intended to be qualified under section 401(a) of the Code and sponsored by the Company or a member of the Company’s controlled group of corporations within the meaning of section 414(b) of the Code. A
person is not a Pension Plan Distributee if the only payments made to the person by a Pension Plan are: (a) a distribution of a lump sum cashout that was made without participant consent under section 417(e) of the Code; (b) a return of
the person’s contributions under a Pension Plan and the 

  

 73 








 
interest credited under the Pension Plan on those contributions; or (c) a transfer of pension assets and the liabilities corresponding to those assets
to the pension plan of an entity to which the Company disposes of a business or function. A person also is not a Pension Plan Distributee if, after first receiving a distribution from a Pension Plan, the person becomes an Employee as a result of the
Company’s acquisition of a business that employed the person at the time of the acquisition. 
  

 74 








 APPENDIX A 
 Procedures For Calculation Of Actuarial Equivalent Values 
 Each “Actuarial Equivalent Value” under
this Plan shall be determined in accordance with the following methods, tables, interest rates and other factors. References to the “PBGC rates” mean the set of rates used by the Pension Benefit Guaranty Corporation for purposes of valuing
lump sum distributions under terminating non-multiemployer pension plans. 
  

	1.	Lump Sum Payment Option - For purposes of determining/converting to a lump sum value, the following factors shall be used: 

  

	 	(a)	Rate of Interest: For determinations before January 1, 1999, the PBGC rates in effect on the first day of the Plan Year for which the distribution is made. For
determinations after December 31, 1998, the annual rate of interest on 30-year Treasury securities as specified by the Commissioner for the month of November preceding the Plan Year in which the distribution is made. 


 

	 	(b)	Mortality: For determinations before January 1, 1999, the PBGC mortality rate table for healthy males with ages of the Participant set back one year and ages of the
spouse or Joint Annuitant set back four years. For determinations after December 31, 1998 and before December 31, 2002, the 1983 Group Annuity Mortality Table using a blend of fifty percent (50%) of the male table and fifty percent
(50%) of the female table. For determinations on or after December 31, 2002, the 94 GAR/GATT 2003 Mortality Table prescribed in Revenue Ruling 2001-62. 

  

	2.	Optional Forms Of Retirement Benefit - For purposes of determining an optional form of benefit payment (other than a lump sum) under Sections 6.01, 8.01, and 9.05, and for
any purpose for which no other definition is specified, the following factors shall be used: 

  

	 	(a)	Rate of Interest: 7% 

  

	 	(b)	Mortality: The 1971 Group Annuity Mortality Table, male rates, with ages of the Participant set back one year and ages of the spouse or Joint Annuitant set back five years.


 Notwithstanding the above, for purposes of computing installment amounts under Section 8.01, the factors in
Section 1 of this Appendix A shall be used rather than the factors in this section 2, if the factors in Section 1 result in larger installment payments. 
  

	3.	Asset Transfer Between Plans - Unless another basis is established by the Actuary to satisfy the requirements of Regulation Section 1.414 (l)-1 that asset transfers must
be equal to the “present value of the benefits on a termination basis,” the asset transfer specified in Section 3.04 shall be based on the following factors: 

  

	 	(a)	Rate of Interest: 8% 

  

 Appendix A - 1 









	 	(b)	Mortality: The 1971 Group Annuity Mortality Table for males and females. 

  

	4.	Early Commencement Factors - For purposes of determining the amount of a retirement benefit payable on an early commencement date under Sections 5.04 and 5.05(b), the
following factors shall be used: 

  

					
	 Age At Early
 Commencement Date
	 	 Factor For
 Section 5.04
	 	 Factor For
 Section 5.05(b)

	 65
	 	1.00	 	1.000
	 64
	 	1.00	 	.933
	 63
	 	1.00	 	.867
	 62
	 	1.00	 	.800
	 61
	 	.95	 	.733
	 60
	 	.90	 	.667
	 59
	 	.85	 	.633
	 58
	 	.80	 	.600
	 57
	 	.75	 	.567
	 56
	 	.70	 	.533
	 55
	 	.65	 	.500

 The above factors shall be interpolated between ages in the table using whole years and completed months of age.

  

 Appendix A - 2 








 APPENDIX B 
 Reduction Factors For Additional Optional Death 
 Benefit Under Section 8.03 

 

							
	 Participant’s Age
 Minus Spouse’s
	 	 Prior to 8/1/83
	 	 After 7/31/83 and
 Prior to Normal
 Retirement*

	 Age
	 	 Males
	 	 Females
	 	 Date

	 5
	 	    .500%	 	    .230%	 	    .450%
	 4
	 	.500	 	.224	 	.450
	 3
	 	.500	 	.218	 	.450
	 2
	 	.500	 	.212	 	.450
	 1
	 	.500	 	.206	 	.450
	 0
	 	.500	 	.200	 	.450
	 -1
	 	.495	 	.200	 	.446
	 -2
	 	.490	 	.200	 	.441
	 -3
	 	.485	 	.200	 	.437
	 -4
	 	.480	 	.200	 	.432
	 -5
	 	.475	 	.200	 	.428
	For each year in excess of 5, add the following to the factor for 5	 	.005	 	.006	 	.0045
				
	For each year less than -5, subtract the following from the factor for -5	 	.005	 	.006	 	.0045



	*	The percentage factor applicable to periods of coverage occurring after the Participant’s Normal Retirement Date shall be equal to two times the percentage factor applicable
prior to Normal Retirement Date. 

  

 Appendix B -1 








 SUPPLEMENT A 
 Special Provisions 
 Applicable to Former Hangar One, Inc. Salaried Employees

  

	A-1	Introduction. On December 31, 1987, the assets and liabilities held under the Hangar One, Inc. Restated Pension Plan and Trust (the “Hangar One Plan”) with
respect to each salaried employee who was participating in the plan on that date were merged into this Plan. The purpose of this Supplement A is to provide for payment under the Plan of the additional benefits described below with respect to
salaried employees of Hangar One, Inc. on December 31, 1987 who became Participants in the Plan on January 1, 1988 (hereinafter referred to as “Hangar One Salaried Employees”). 

  

	A-2	Vesting Service. For the purpose of determining the Vesting Service of a Hangar One Salaried Employee, but not for other purposes, periods of employment with Hangar One, Inc.
occurring prior to March 30, 1983 shall be considered as employment with an Employer. 

  

	A-3	Accrued Benefit. The Accrued Benefit for a Hangar One Salaried Employee shall be equal to the sum of the Accrued Benefit defined in Section 5.01 of this Plan for periods
of Credited Service after December 31, 1987 plus whichever of the amounts determined under subparagraphs (a), (b), or (c) below is the greatest. 

  


	 	(a)	Shall be equal to the applicable “dollar credit” determined under section 5.01 of the Beech Base Retirement Income Plan as of the Participant’s Termination Date
multiplied by the Participant’s Credited Service for the period ending on December 31, 1987. For this purpose, Credited Service shall be determined in accordance with the provisions of Section 3.2 of the Plan as it existed prior to
January 1, 1989 as if all periods of employment after March 29, 1983 are considered to be employment as an “active participant” under the Plan. 

  

	 	(b)	 Shall be equal to 1.09642, which is the factor for converting a ten-year certain and life annuity form to a life annuity form payable at age 65, multiplied by the
amount, if any, identified in Exhibit A hereof as the Participant’s “Accrued Benefit 12/31/87,” and with the result multiplied by a fraction, not less than one, the numerator of which is the Participant’s Adjusted Average Annual
Earnings on his Termination Date and the denominator of which is the Participant’s “Average Annual Earnings on 12/31/87” as set forth in Exhibit A. For this purpose, Adjusted Average Annual Earnings shall mean the highest annual
average of a 



  

 Suppl A - 1 









	 	 
Participant’s compensation for any consecutive five completed calendar years of employment within the ten-year period immediately preceding his
Termination Date. If a Participant has less than five completed years of employment, Adjusted Average Annual Earnings shall be based on the average of all completed calendar years of employment. A Participant’s compensation shall include his
total compensation, exclusive of any fringe benefits, paid by the Employer and includible during a calendar year in his gross income for Federal income tax purposes plus any reduced compensation amounts attributable to the Participant’s
participation under an IRS qualified section 401(k) plan or a section 125 cafeteria plan. In calculating Adjusted Average Annual Compensation between January 1, 1989 and December 31, 1993, total compensation for any calendar year
shall not exceed $200,000 times the Adjustment Factor applicable for that calendar year with $200,000 applied for all years prior to January 1, 1989. In calculating Adjusted Average Annual Compensation on or after January 1, 1994, total
compensation for any calendar year shall not exceed $150,000 times the Adjustment Factor applicable for such year with $150,000 applied for all years prior to January 1, 1994. 


  

	 	(c)	Shall be the Participant’s “Conversion Date Value,” if any, at his Normal Retirement Date (or his actual retirement date, if later) multiplied by the monthly life
annuity conversion factor .0083. For this purpose, the “Conversion Date Value” shall be equal to the amount set forth in Exhibit A for an employee who was a participant in the Hangar One Plan as of December 1, 1976 accumulated with
interest at the rate of 5% per year, compounded annually, to the date it is applied for the calculation of the Participant’s Accrued Benefit under this Plan. 

  

	A-4	Additional Rules. If and to the extent they are more favorable than any other provisions of this Plan, the following rules also apply to a Hangar One Salaried Employee.


  

	 	(a)	If a Hangar One Salaried Employee has at least five (5) years but less than ten (10) years of “credited service” (as defined under the Hangar One Plan prior to
January 1, 1988) as of January 1, 1988, he shall continue to become vested in his Accrued Benefit in accordance with the graded vesting schedule of section 5.01 of the Hangar One Plan. For the purpose of determining such graded vesting,
the Participant’s “credited service” after January 1, 1988 shall be equal to his “credited service” on January 1, 1988 plus his years of Vesting Service earned under this Plan for periods of employment after
December 31, 1987. 

  

 Suppl A - 2 









	 	(b)	A Hangar One Salaried Employee who is identified in Exhibit A with a Conversion Date Value on December 1, 1976 shall continue to have the benefit of the single-sum cash option
defined in Section 6.06(b) of the Hangar One Plan and the survivorship benefits defined in Section 6.06(d) of the Hangar One Plan. In the event that a single-sum cash benefit is paid to or on behalf of a Participant under either of said
sections, the amount of any benefit otherwise payable under the provisions of this Plan shall be reduced on an Actuarial Equivalent basis to reflect the value of the single-sum cash benefit so provided. 

  

	 	(c)	If a Hangar One Salaried Employee receives an Early Retirement Benefit under Section 5.04 of this Plan or a Deferred Vested Benefit under Section 5.05 of this Plan, the
amount of his benefit, before adjustment for any optional form of payment, shall be at least equal to the greater of (i) his “Accrued Benefit 12/31/87,” as identified in Exhibit A, adjusted to the life annuity form or (ii) his
vested percentage multiplied by the monthly amount defined in paragraph A-3(c) above, with either amount reduced by 5/18 of 1% for each month by which his first payment date precedes his Normal Retirement Date. 

  

 Suppl A - 3