Document:

Preferred Share Conversion Agreement dated July 23, 2008

 Exhibit 10.23 
 PREFERRED SHARE CONVERSION AGREEMENT 
 This preferred share conversion agreement (the
“Agreement”) is dated as of this 23rd day of July, 2008, by and among: 
  

	 	A.	China Mass Media International Advertising Corp., an exempted company established and existing under the laws of the Cayman Islands (the “Company”);

  

	 	B.	Happy Indian Ocean Limited, an exempted company established and existing under the laws of the Cayman Islands (“Happy Indian”); and 

  

	 	C.	Arctic Spring Limited, an exempted company established and existing under the laws of the Cayman Islands (“Arctic Spring”). 

 The foregoing parties shall be hereinafter referred to collectively as the “Parties” and individually as a “Party”.
Happy Indian and Arctic Spring shall be hereinafter referred to collectively as the “Preferred Shareholders” and individually as a “Preferred Shareholder”. 
 WITNESSETH 
 WHEREAS, the Company, Happy Indian and Arctic Spring and others are
parties to an investor rights agreement, dated as of June 24, 2008 (the “Investor Rights Agreement”), which sets forth certain agreements relating to the rights and obligations of and among the shareholders of the Company;

 WHEREAS, the Company, the Founder, Happy Indian, Arctic Spring, Winner Wide, CTF Capital, Goldcorn Development, Jumbo Right, True Wise and
Ever Kingdom propose to enter into several share purchase agreements (collectively the “Share Purchase Agreements”) on or about the date hereof, pursuant to which Happy Indian and Arctic Spring will purchase, and each of Winner
Wide, CTF Capital, Goldcorn Development, Jumbo Right, True Wise and Ever Kingdom (the “Sellers”) will sell to Happy Indian and Arctic Spring, all of the Series A Preferred Shares currently owned by the Sellers; and 
 WHEREAS, the Company is undertaking its first firm commitment underwritten public offering of American depositary shares, each of which representing
15 Ordinary Shares of the Company, with a listing on the New York Stock Exchange (the “Initial Public Offering”), and each of Preferred Shareholders desires to convert all of the outstanding Series A Preferred Shares into Ordinary
Shares immediately prior to the completion of the Initial Public Offering under Article 7.3(a) of the Company’s Second Amended and Restated Memorandum and Articles of Association adopted by a special resolution on June 24, 2008 (the
“Second Restated Articles”). 
 NOW, THEREFORE, in consideration of the premises set forth above, the mutual promises and
covenants set forth herein and other good and valuable consideration, and subject to and on the terms and conditions set forth herein, the Parties agree as follows: 
  

 1 

 1. Interpretation 
 Capitalized terms used but not otherwise defined herein shall have the meanings assigned to them in the Investor Rights Agreement and the Investment Agreements (as defined in the Investor Rights Agreement).

 2. Conversion of Series A Preferred Shares 
 2.1 Conversion. (a) Pursuant to Article 7.3(a) of the Second Restated Articles, each Preferred Shareholder hereby elects to convert all of the Series A Shares it holds, or will hold upon consummation of each of the Share Purchase
Agreements, into Ordinary Shares at a one-to-one conversion ratio immediately prior to the completion of the Initial Public Offering (the “Conversion”). The Company agrees to undertake such Conversion in accordance with the terms of
the Second Restated Articles. 
 (b) This Agreement constitutes prior written notice under section 7.3(c) of the Second Restated Articles
of each Preferred Shareholder’s intent to convert, and the Company hereby waives the time and method of delivery requirements under such section. Happy Indian and Arctic Spring each agrees to surrender to the Company the
certificate or certificates for all of the Series A Preferred Shares that it will acquire under each of the Share Purchase Agreements dated as of July 23, 2008, no later than the earlier of (i) the date two (2) days from the Closing
of each of the respective Share Purchase Agreements (as such term is defined in each such agreement) and (ii) the date one (1) day prior to the completion of the Initial Public Offering. 
 2.2 Condition on Conversion. The Conversion shall be conditioned upon and shall occur concurrently with the closing of the sale of securities
pursuant to the Initial Public Offering. 
 2.3 Waiver of Anti-Dilution Adjustments. The Preferred Shareholders hereby agree that
Article 7.3(d) of the Second Restated Articles shall not apply to the Conversion. 
 3. Miscellaneous 
 3.1 Amendments and Waivers. Any term of this Agreement may be amended and the observance of any term of this Agreement may be waived (either
generally or in a particular instance and either retroactively or prospectively), only with the written consent of the Parties. Any waiver of any term or condition shall not be construed as a waiver of any subsequent breach or a subsequent waiver of
the same term or condition, or a waiver of any other term or condition of this Agreement. The failure of a Party hereto to assert any of its rights hereunder shall not constitute a waiver of any of such rights. 
 3.2 Severability. If any term or other provision of this Agreement is invalid, illegal or incapable of being enforced by any law or public policy,
all other terms and provisions of this Agreement shall nevertheless remain in full force and effect for so long as the economic or legal substance of the transactions contemplated by this Agreement is not affected in any manner materially adverse to
any Party hereto. Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the Parties shall negotiate in good faith to modify this Agreement so as to effect the original intent of the Parties as
closely as possible in an acceptable manner in order that the transactions contemplated by this Agreement are consummated as originally contemplated to the greatest extent possible. 
  

 2 

 3.3 Entire Agreement. This Agreement and the documents referred to herein, together with all
schedules and exhibits hereto and thereto, constitute the entire agreement among the Parties hereto with respect to the subject matters hereof and no Party shall be liable or bound to any other Party in any manner by any warranties, representations,
or covenants except as specifically set forth herein or therein; provided, however, that nothing in this Agreement shall be deemed to terminate or supersede the provisions of any confidentiality and non-disclosure agreements executed
by the Parties hereto prior to the date of this Agreement, all of which agreements shall continue in full force and effect until terminated in accordance with their respective terms. 
 3.4 Governing Law. This Agreement shall be governed by and construed under the laws of The State of New York, the United States of America,
without regard to principles of conflicts of law thereunder. 
 3.5 Dispute Resolution. 
 (a) Any dispute, controversy or claim arising out of or relating to this Agreement, or the interpretation, breach, termination or validity
hereof, shall be resolved through consultation. Such consultation shall begin immediately after one party hereto has delivered to the other parties hereto a written request for such consultation. If within thirty (30) days following the date on
which such written request is given the dispute cannot be resolved, the dispute shall be settled by arbitration in Hong Kong under the UNCITRAL Arbitration Rules in accordance with the HKIAC Procedures for the Administration of International
Arbitration in force as at the date of this Agreement to the extent not conflicting with the provisions of this Section 3.5. 
 (b) The arbitration shall be conducted in Hong Kong under the auspices of the Hong Kong International Arbitration Centre (the “Centre”). There shall be three (3) arbitrators. Each of the parties in dispute shall select
one arbitrator within thirty (30) days after giving or receiving the demand for arbitration. Such arbitrators shall be freely selected, and the parties shall not be limited in their selection to any prescribed list. The Chairman of the
Centre shall select the third arbitrator, who shall be qualified to practice law in the State of New York. If any Party does not appoint an arbitrator who has consented to participate within thirty (30) days after selection of the first
arbitrator, the relevant appointment shall be made by the Chairman of the Centre. 
 (c) The arbitration proceedings shall be
conducted in English. The arbitrators shall decide any dispute submitted by the parties to the arbitration strictly in accordance with the substantive law of The State of New York and shall not apply any other substantive law. 
 (d) Each party hereto shall cooperate with the other parties in making full disclosure of and providing complete access to all information
and documents requested by the other parties in connection with such arbitration proceedings, subject only to any confidentiality obligations binding on such party. 
 (e) The award of the arbitration tribunal shall be final and binding upon the disputing parties, and each party may apply to a court of
competent jurisdiction for enforcement of such award. 
  

 3 

 (f) Each party shall be entitled to seek preliminary injunctive relief, if possible, from
any court of competent jurisdiction pending the constitution of the arbitration tribunal. 
 3.6 Counterparts. This Agreement may be
executed in one or more counterparts, each of which shall be deemed an original, but all of which taken together shall constitute one and the same instrument. Counterparts transmitted by facsimile shall be deemed to be originals. 
 [The remainder of this page has been left intentionally blank; signatures follow] 
  

 4 

 IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first written above.

  

			
	 CHINA MASS MEDIA INTERNATIONAL
 ADVERTISING CORP.

		
	By:	 	 /s/ Shengcheng Wang

	Name:	 	
	Title:	 	
	
	HAPPY INDIAN OCEAN LIMITED
		
	By:	 	 /s/ RTC Administrators Limited

	Name:	 	
	Title:	 	
	
	ARCTIC SPRING LIMITED
		
	By:	 	 /s/ RTC Administrators Limited

	Name:	 	
	Title:	 	

 Preferred Share Conversion AgreementSupplemental Benefit Plan for Employees

 Exhibit 10 I 
 SUPPLEMENTAL BENEFIT PLAN 
 FOR EMPLOYEES OF 
 THE BOEING COMPANY 
 AS AMENDED AND
RESTATED 
 EFFECTIVE January 1, 2009 

 TABLE OF CONTENTS 
  

					
	 ARTICLE I  Introduction
	  	1
	 ARTICLE II  Definitions
	  	2
	 2.1
	  	 Account
	  	2
	 2.2
	  	 Affiliate or Subsidiary
	  	2
	 2.3
	  	 Authorized Period of Absence
	  	2
	 2.4
	  	 Automatic Profit Sharing Contribution
	  	2
	 2.5
	  	 Base Salary
	  	2
	 2.6
	  	 Beneficiary
	  	2
	 2.7
	  	 BCERP
	  	2
	 2.8
	  	 Board of Directors
	  	3
	 2.9
	  	 Code
	  	3
	 2.10
	  	 Committee
	  	3
	 2.11
	  	 Company
	  	3
	 2.12
	  	 Compensation
	  	3
	 2.13
	  	 DC SERP Benefit
	  	3
	 2.14
	  	 Deferrals
	  	3
	 2.15
	  	 Deferral Election
	  	3
	 2.16
	  	 Deferred Compensation Plan
	  	3
	 2.17
	  	 Earnings Credits
	  	4
	 2.18
	  	 Eligible Employee
	  	4
	 2.19
	  	 Employee
	  	4
	 2.20
	  	 Executive Profit Sharing Contribution
	  	4
	 2.21
	  	 FSP
	  	4
	 2.22
	  	 Incentive Compensation
	  	4
	 2.23
	  	 Layoff Period
	  	4
	 2.24
	  	 Matching Credit
	  	5
	 2.25
	  	 Participant
	  	5
	 2.26
	  	 Plan
	  	5
	 2.27
	  	 Plan Year
	  	5
	 2.28
	  	 PVP
	  	5
	 2.29
	  	 Restoration Benefit
	  	5
	 2.30
	  	 Separation from Service
	  	5
	 2.31
	  	 SERP
	  	6
	 2.32
	  	 Service
	  	6
	 2.33
	  	 Specified Employee
	  	6
	 2.34
	  	 Unforeseeable Emergency
	  	6
	 2.35
	  	 VIP
	  	6
	 ARTICLE III  Restoration Benefit Eligibility and Benefits
	  	7
	 3.1
	  	 Restoration Benefit Eligibility
	  	7
	 3.2
	  	 Restoration Benefit Participation
	  	8
	 3.3
	  	 Deferrals
	  	9
	 3.4
	  	 Matching Credits
	  	10
	 3.5
	  	 Automatic Profit Sharing Contributions
	  	10

  

 i 

					
	 3.6
	  	 Vesting
	  	11
	 3.7
	  	 Cancellation of Deferral Election Due to Unforeseeable Emergency
	  	11
	 ARTICLE IV  Executive Profit Sharing Contribution Eligibility and Benefits
	  	12
	 4.1
	  	 Executive Profit Sharing Contribution Eligibility
	  	12
	 4.2
	  	 Executive Profit Sharing Contribution Participation
	  	12
	 4.3
	  	 Executive Profit Sharing Contribution Benefits
	  	13
	 4.4
	  	 Executive Profit Sharing Contribution Vesting
	  	13
	 ARTICLE V DC SERP Eligibility and Benefits
	  	14
	 5.1
	  	 DC SERP Eligibility
	  	14
	 5.2
	  	 DC SERP Participation
	  	14
	 5.3
	  	 DC SERP Benefits
	  	14
	 5.4
	  	 DC SERP Vesting
	  	15
	 5.5
	  	 DC SERP Forfeiture Rules
	  	18
	 ARTICLE VI  Distributions
	  	20
	 6.1
	  	 Form and Timing of Distribution
	  	20
	 6.2
	  	 Death Benefits
	  	24
	 6.3
	  	 Rehires
	  	24
	 ARTICLE VII  Accounts
	  	27
	 7.1
	  	 Participant Accounts
	  	27
	 7.2
	  	 Earnings Credits
	  	27
	 7.3
	  	 Investment Election Changes and Restrictions
	  	29
	 7.4
	  	 Missing Participants and Improper Credits
	  	29
	 ARTICLE VIII  Administration
	  	30
	 8.1
	  	 Plan Administration
	  	30
	 8.2
	  	 Claims Procedure
	  	30
	 ARTICLE IX  Amendment and Termination
	  	31
	 ARTICLE X  Miscellaneous
	  	32
	 10.1
	  	 No Employment Rights
	  	32
	 10.2
	  	 Anti-Assignment
	  	32
	 10.3
	  	 Unfunded Status of Plan
	  	32
	 10.4
	  	 Delays in Payment
	  	32
	 10.5
	  	 Involuntary Inclusion in Income
	  	32
	 10.6
	  	 Compliance With Code Section 409A
	  	33
	 10.7
	  	 Construction
	  	33
	 10.8
	  	 Legal Action
	  	33
	 APPENDIX A  Boeing Satellite Systems Salaried Employees’ Excess Benefit Plan
	  	34
	 APPENDIX B  Plan Provisions Prior To January 1, 1999
	  	42
	 B1.1
	  	 Eligibility and Benefits for BCERP Participants
	  	42
	 B1.2
	  	 Eligibility and Benefits for FSP Participants
	  	43

  

 ii 

 ARTICLE I 
 Introduction 
 The Supplemental Benefit Plan for Employees of The Boeing Company (Plan) was originally
established effective January 1, 1978 by The Boeing Company. The Plan was amended and restated effective January 1, 2008 to comply with section 409A of the Internal Revenue Code of 1986, as amended (Code). The Plan was subsequently amended
and restated as of January 1, 2009 for the purpose of expanding the Restoration Benefit, and for the purpose of adding an Executive Profit Sharing Contribution and a DC SERP benefit. 
 The Plan provides three separate benefits: (i) the Restoration Benefit, (ii) the Executive Profit Sharing Contribution, and (iii) the DC SERP Benefit. The
purpose of the Restoration Benefit is to restore the benefits of certain employees under The Boeing Company Voluntary Investment Plan, to the extent that these qualified plan benefits are limited by sections 415 and 401(a)(17) of the Code. The
purpose of the Executive Profit Sharing Contribution is to provide an additional contribution to this Plan, equal to a percentage of the annual incentive plan payments for a select group of management or highly compensated employees who are hired or
rehired on or after January 1, 2009, in lieu of a portion of the special profit sharing contribution under the VIP. The purpose of the DC SERP Benefit is to provide a supplemental retirement benefit for a select group of management or highly
compensated employees at level E-1 through E-3 who are hired or rehired on or after January 1, 2009. 
 For periods prior to January 1, 1999, the
Plan also restored participants’ benefits under The Boeing Company Employee Retirement Plan and The Boeing Company Employee Financial Security Plan, to the extent these benefits were limited by sections 415 and 401(a)(17) of the Code. For the
period January 1, 1987 through May 31, 1987, the Plan also restored benefits reduced by the limitation on elective deferrals imposed by section 402(g)(1) of the Code. 
 It is intended that the Plan shall be an excess benefit plan as defined in section 3(36) of the Employee Retirement Income Security Act of 1974 (ERISA) to the extent benefits are paid in excess of the limits imposed
by section 415 of the Code. To the extent any part of the Plan is not an excess benefit plan, it is intended that the Plan is an unfunded plan maintained primarily for the purpose of providing deferred compensation to a select group of management or
highly compensated employees under sections 201(2), 301(a)(3), and 401(a)(1) of ERISA. 
  

 1 

 ARTICLE II 
 Definitions 
  

	2.1	Account 

 “Account” means the
recordkeeping account established for each Participant in the Plan, for purposes of accounting for Restoration Benefits (Deferrals, Matching Credits, and Automatic Profit Sharing Contributions), Executive Profit Sharing Contributions, DC SERP
Benefits, and the Earnings Credits thereon. 
  

	2.2	Affiliate or Subsidiary 

 “Affiliate or
Subsidiary” means a member of a controlled group of corporations (as defined in Code section 1563(a), determined without regard to Code sections 1563(a)(4) and (e)(3)(c)), a group of trades or businesses (whether incorporated or not) which are
under common control within the meaning of Code section 414(c), or an affiliated service group (as defined in Code sections 414(m) or 414(o)) of which The Boeing Company is a part. 
  

	2.3	Authorized Period of Absence 

 “Authorized
Period of Absence” means a leave of absence approved by the Company. 
  

	2.4	Automatic Profit Sharing Contribution 

 “Automatic Profit Sharing Contribution” means the benefit provided under Section 3.5. 
  

	2.5	Base Salary 

 “Base Salary” means an
Employee’s annual base rate of pay from the Company. 
  

	2.6	Beneficiary 

 “Beneficiary” generally
means the person or persons designated by a Participant under the VIP to receive any benefit payable from the VIP upon the death of the Participant. If no designation is filed under the VIP, or if the designated beneficiary does not survive the
Participant, the default rules stated in the VIP will apply. 
  

	2.7	BCERP 

 “BCERP” means The Boeing Company
Employee Retirement Plan. 
  

 2 

	2.8	Board of Directors 

 “Board of Directors”
means the board of directors of The Boeing Company. 
  

	2.9	Code 

 “Code” means the Internal Revenue
Code of 1986, as amended. 
  

	2.10	Committee 

 “Committee” means the Employee
Benefit Plans Committee. 
  

	2.11	Company 

 “Company” means The Boeing
Company, its successors in interest, and its Affiliates and Subsidiaries. 
  

	2.12	Compensation 

 “Compensation” means a
Participant’s Compensation as defined under the VIP, but determined without regard to the limitation on Compensation under Code section 401(a)(17). In no event will Compensation include payments under any incentive compensation plan, without
regard to whether it is included in compensation under the VIP. 
  

	2.13	DC SERP Benefit 

 “DC SERP Benefit” means
the benefit provided under Article V, and Earnings Credits thereon. 
  

	2.14	Deferrals 

 “Deferrals” means the portion
of a Participant’s Compensation, if any, that he or she elects to defer on a pre-tax basis under this Plan in accordance with Section 3.3. 
  

	2.15	Deferral Election 

 “Deferral Election”
means the election made by an Eligible Employee to defer a portion of his or her Compensation in accordance with Section 3.3. 
  

	2.16	Deferred Compensation Plan 

 “Deferred
Compensation Plan” means the Deferred Compensation Plan for Employees of The Boeing Company. 
  

 3 

	2.17	Earnings Credits 

 “Earnings Credits”
means the adjustment to a Participant’s Account under Section 7.2. 
  

	2.18	Eligible Employee 

 “Eligible Employee”
means, with respect to any Plan Year, an Employee of the Company who has satisfied the requirements of one or more of the following: Section 3.1 with regard to the Restoration Benefit, Section 4.1 with regard to the Executive Profit
Sharing Contribution, or Section 5.1 with regard to the DC SERP Benefit. 
  

	2.19	Employee 

 “Employee” means any person who
is employed as a common law employee by any member of the Company. 
  

	2.20	Executive Profit Sharing Contribution 

 “Executive Profit Sharing Contribution” means the benefit provided under Article IV. 
  

	2.21	FSP 

 “FSP” means The Boeing Company
Employee Financial Security Plan. 
  

	2.22	Incentive Compensation 

 “Incentive
Compensation” means the amount payable to the Participant under The Boeing Company Elected Officer Annual Incentive Plan or the Incentive Compensation Plan for Employees of The Boeing Company and Subsidiaries. Incentive Compensation will be
counted solely to the extent attributable to performance periods beginning on or after January 1, 2009. 
 Incentive Compensation
deferred by the Participant under the Deferred Compensation Plan will be deemed to have been paid as if those amounts had not been deferred, for purposes of this Plan. 
  

	2.23	Layoff Period 

 “Layoff Period” means the
period beginning on the date a Participant is laid off from employment with the Company and ending on the sixth anniversary of such layoff. 
  

 4 

	2.24	Matching Credit 

 “Matching Credit” means
the amount credited to a Participant’s Account under Section 3.4. 
  

	2.25	Participant 

 “Participant” means an
Eligible Employee who has elected to defer Compensation or receive Automatic Profit Sharing Contributions under the Plan in accordance with Article III, who is eligible to receive an Executive Profit Sharing Contribution under Article IV, who is
eligible to accrue benefits under the DC SERP under Article V, or an Employee or former Employee who has amounts credited to his or her Account. 
  

	2.26	Plan 

 “Plan” means this Supplemental
Benefit Plan for Employees of The Boeing Company as herein set forth, together with any amendments that may be adopted. 
  

	2.27	Plan Year 

 “Plan Year” means the calendar
year. 
  

	2.28	PVP 

 “PVP” means the Pension Value Plan
for Employees of The Boeing Company. 
  

	2.29	Restoration Benefit 

 “Restoration
Benefit” means the benefit provided under Article III, comprised of Deferrals, Matching Credits and Automatic Profit Sharing Contributions, as applicable, and Earnings Credits thereon. 
  

	2.30	Separation from Service 

 “Separation from
Service” or “Separates from Service” means an Employee’s death, retirement or termination of employment from the Company within the meaning of Code section 409A. For purposes of determining whether a Separation from Service
has occurred, Affiliates and Subsidiaries are defined by using the language “at least 80 percent” to define the controlled group under Code section 1563(a) in lieu of the 50 percent default rule stated in Treasury Regulation section
1.409A-1(h)(3). 
 A Separation from Service is deemed to include a reasonably anticipated permanent reduction in the level of services
performed by an Employee, to less than 50 percent of the average level of services performed by the Employee during the immediately preceding 36-month period. 
  

 5 

	2.31	SERP 

 “SERP” means the Supplemental
Executive Retirement Plan for Employees of The Boeing Company. 
  

	2.32	Service 

 “Service” means the
Participant’s years of service with the Company, determined in the same manner as the service time calculation under the Boeing Service Awards Program procedure, in completed whole years. 
  

	2.33	Specified Employee 

 “Specified Employee”
means an Employee who is a “specified employee” within the meaning of Code section 409A. Specified Employee status is determined on the last day of the prior Plan Year, to take effect as of April 1 of the Plan Year for a 12-month
period. Notwithstanding the foregoing, Specified Employees shall be determined by including the employees whom the Company reasonably determines to be the 75 top-paid officers of the Company rather than the 50 top-paid officers as provided under
Code section 416(i)(1)(A), to the extent permitted under Code section 409A. 
  

	2.34	Unforeseeable Emergency 

 “Unforeseeable
Emergency” means “unforeseeable emergency” within the meaning of Code section 409A, as determined by the Committee. 
  

	2.35	VIP 

 “VIP” means The Boeing Company
Voluntary Investment Plan. 
  

 6 

 ARTICLE III 
 Restoration Benefit 
 Eligibility and Benefits 
  

	3.1	Restoration Benefit Eligibility 

 An Employee is
eligible to participate in the Restoration Benefit program for a Plan Year if he or she satisfies each of the conditions described in (A)-(C) below: 
  

	 	(A)	The Employee is eligible to participate in the VIP during the Plan Year. 

  

	 	(B)	The Employee is, during the Plan Year, a salaried Employee of the Company who is not represented by a collective bargaining agent (or represented by a collective bargaining agent
where the terms of the collective bargaining agreement covering such Employee specifically provide for coverage under the Plan). 

  

	 	 (C)
	 As of October 1st of the prior Plan Year, the Employee’s Base Salary for the prior Plan Year equaled or exceeded the amount calculated as follows (rounded down to the nearest $1,000 increment): 

 The dollar limit imposed by section 415(c) of the Code for the prior Plan Year, divided by the percentage equal to the sum of (i), (ii), (iii) and
(iv), as applicable. 
  

	 	 (i)
	 The maximum percentage that an Employee can elect to contribute on a pre-tax or after-tax basis under the VIP, for the
prior Plan Year (or such other rate approved by the Committee by October 1st to take effect under the VIP as of the following January).

  

	 	 (ii)
	 The maximum percentage that an Employee can receive as an Employer Matching Contribution under the VIP, for the prior
Plan Year (or such other rate approved by the Committee by October 1st to take effect under the VIP as of the following January).

  

	 	 (iii)
	 The maximum percentage that the Employee can receive as a Special Profit Sharing Contribution under the VIP, for the
prior Plan Year (or such other rate approved by the Committee by October 1st to take effect under the VIP as of the following January), based
on the Employee’s anticipated age at the end of the Plan Year of participation. 

  

	 	(iv)	Solely with regard to an Employee who actively participates in the Boeing Satellite Systems Retirement Plan (“BSS Plan”), the percentage of Participant Contributions made
under Exhibit A of the BSS Plan, for the prior Plan Year. 

  

 7 

 Example: To be eligible to participate in this Plan during 2010, the Employee’s Base Salary as of
October 1, 2009 must be at least $131,000 ($46,000/(25% + 6% + 4%) = $46,000/.35 = $131,428.57 rounded down). This figure is determined based on the following assumptions: 
  

	 	•	 	 The Code section 415(c) limit is $46,000 for the 2009 Plan Year. 

  

	 	•	 	 The maximum VIP employee contribution in 2009 is 25% of compensation. 

  

	 	•	 	 The maximum VIP employer matching contribution in 2009 applicable to this Employee is 6%. 

  

	 	•	 	 The maximum Special Profit Sharing Contribution under the VIP in 2009 is 4% of compensation (based on the participant’s anticipated attainment of age 40 during
2010). 

 If the Employee in this example actively participates in
the BSS Plan, which requires a 3% employee contribution, his or her Base Salary as of October 1st must be at least $121,000 ($46,000/(25% + 6%
+ 4%+ 3%) = $46,000/.38 = $121,052.63 rounded down). 
 Effective March 22, 2003, participants in the Boeing Satellite Systems Voluntary
Savings Plan (the “BSS Voluntary Savings Plan”) became eligible to participate in the VIP. Consequently, a former participant in the BSS Voluntary Savings Plan who met the eligibility requirements of this Plan as of March 22, 2003
became eligible for benefits under this Plan based upon his or her participation in the VIP. 
  

	3.2	Restoration Benefit Participation 

 An Eligible
Employee will become a Participant in the Restoration Benefit program when he or she elects to defer Compensation for a Plan Year, by executing and delivering a timely Deferral Election in accordance with subsections (A)-(C) below. Deferrals
and Matching Credits are described in Sections 3.3 and 3.4 below. 
 An Eligible Employee who receives a Special Profit Sharing Contribution
under the VIP will also, to the extent eligible, become a Participant in the Restoration Benefit program when he or she elects to receive an Automatic Profit Sharing Contribution for a Plan Year, by executing and delivering a timely Automatic Profit
Sharing Contribution Election in accordance with subsections (A)-(C) below. Automatic Profit Sharing Contributions are described in section 3.5 below. 
  

	 	(A)	Elections  

 A Participant’s Deferral Election
or Automatic Profit Sharing Contribution Election must be executed and delivered to the Company in accordance with rules established by the Committee. 
  

 8 

	 	(B)	Timing of Elections 

 In general, the Deferral
Election or Automatic Profit Sharing Contribution Election must be filed during the election period established by the Committee. This election will become irrevocable as of the end of the election period, but in no event later than December 31
of the Plan Year in which the election is made. Each election will apply solely to the Compensation payable in the succeeding Plan Year. Participants must execute a new Deferral Election to defer Compensation payable in each succeeding Plan Year.
Participants must execute a new Automatic Profit Sharing Contribution Election to receive an Automatic Profit Sharing Contribution payable in each succeeding Plan Year. 
 Elections generally may not be modified during the Plan Year. Likewise, an Employee eligible for any portion of the Restoration Benefit provided under this Article III remains subject to restrictions on mid-year
contribution election changes under the VIP, in accordance with the terms of the VIP. 
 See Section 3.7 for a limited exception to the
general rule on the irrevocability of Deferral Elections, in the event of Unforeseeable Emergency. 
  

	 	(C)	No Mid-Year Elections 

 An Employee who becomes an
Eligible Employee during the Plan Year (as a new hire, rehire or due to raise or promotion) will not be eligible to make Deferrals or to receive Automatic Profit Sharing Contributions under the Restoration Benefit program during such Plan Year.

  

	3.3	Deferrals 

 An Eligible Employee may elect to defer
a percentage of his or her Compensation otherwise payable by the Company for a Plan Year by executing and delivering a Deferral Election, as described in Section 3.2 above. This percentage is limited to the maximum percentage described in
Section 3.1(C)(i), as applicable to the Eligible Employee. 
 Deferrals will be made from the Participant’s Compensation only to the
extent that either: (i) Compensation for the applicable Plan Year exceeds the limitation under Code section 401(a)(17), as indexed, or (ii) the Participant’s annual additions under the VIP for the applicable Plan Year reach the dollar
limitation of Code section 415(c), as indexed. 
  

 9 

 Deferred Compensation will be credited to the Participant’s Account on the date the Compensation
would otherwise be payable, or as soon thereafter as administratively feasible. 
  

	3.4	Matching Credits 

 A Participant in the Restoration
Benefit program who defers Compensation for a Plan Year under Section 3.3 will be credited with a Matching Credit from the Company. This Matching Credit will equal a percentage of the Participant’s Deferrals for the Plan Year, subject to a
limit on the Participant’s Compensation from which Deferrals are made under this Restoration Benefit program for the Plan Year. The relevant net percentage will be limited to the maximum rate described in Section 3.1(C)(ii), as applicable
to each Participant. 
 Matching Credits will be credited to the Participant’s Account on the date that the underlying Deferral is
credited to the Participant’s Account. 
  

	3.5	Automatic Profit Sharing Contributions 

 An Eligible
Employee who receives a Special Profit Sharing Contribution under the VIP may elect to receive an Automatic Profit Sharing Contribution for a Plan Year, if eligible, by executing and delivering an Automatic Profit Sharing Contribution Election, as
described in Section 3.2 above. 
 The Automatic Profit Sharing Contribution will equal a percentage of the Participant’s
Compensation during the applicable pay period, subject to the limitations described below. The applicable percentage is determined by the Participant’s age at the end of the Plan Year. This Automatic Profit Sharing Contribution will be made by
the Company on behalf of a Participant only to the extent that either: (i) the Participant’s Compensation for the applicable Plan Year exceeds the limitation under Code section 401(a)(17), as indexed, or (ii) the Participant’s
annual additions under the VIP for the applicable Plan Year reach the dollar limitation of Code section 415(c), as indexed. 
  

	 	(i)	3%, for each eligible Participant under age 40, 

  

	 	(ii)	4%, for each eligible Participant age 40 to 49, 

  

	 	(iii)	5%, for each eligible Participant age 50 and over. 

 An
Automatic Profit Sharing Contribution will be credited to the Participant’s Account on the date the underlying Compensation is payable, or as soon thereafter as administratively feasible. 
 In no event will the Automatic Profit Sharing Contribution duplicate any Special Profit Sharing Contribution made on a Participant’s behalf under the
VIP. 
  

 10 

 To the extent an Employee is eligible to accrue benefits under the SERP based on increases in his or her
salary and/or service during a Plan Year, he or she is ineligible to receive an Automatic Profit Sharing Contribution under this Plan for such Plan Year. This paragraph is not intended to preclude an Automatic Profit Sharing Contribution for an
Employee whose SERP accruals are attributable solely to interest credits on the underlying PVP benefit. 
  

	3.6	Vesting 

 A Participant’s interest in his or
her Account attributable to Restoration Benefits generally will be 100% vested at all times. 
 See Section 7.4 regarding missing
participants and improper credits and Section 10.3 regarding the unfunded nature of this Plan. 
  

	3.7	Cancellation of Deferral Election Due to Unforeseeable Emergency 

 Notwithstanding the election procedures described in Section 3.3, a Participant in the Restoration Benefit program will be permitted to cancel an existing Deferral Election with regard to a Plan Year during that
Plan Year, where the Participant incurs an Unforeseeable Emergency, as determined by the Committee. 
 To the extent that a Participant has
elected and received a distribution due to an Unforeseeable Emergency under Section 6.1(F), the Participant will be deemed to have elected to cancel his or her Deferral Election for the remainder of the applicable Plan Year. 
  

 11 

 ARTICLE IV 
 Executive Profit Sharing Contribution 
 Eligibility and Benefits 
  

	4.1	Executive Profit Sharing Contribution Eligibility 

 An Employee is eligible to receive Executive Profit Sharing Contributions for a Plan Year if he or she satisfies each of the conditions described in (A)-(C) below: 
  

	 	(A)	The Employee was hired or rehired on or after January 1, 2009 and is not eligible to accrue benefits under any defined benefit plan maintained by the Company.

 For purposes of determining eligibility for Executive Profit Sharing Contributions, the term “hired” refers to a
Participant’s most recent date of hire or rehire with the Company, regardless of the date on which the Employee joins the E-Series Payroll, and the term “rehire” does not include a return directly from an Authorized Period of
Absence or from a layoff during the Layoff Period. 
  

	 	(B)	The Employee is eligible to receive a Special Profit Sharing Contribution under the VIP during the Plan Year. 

  

	 	(C)	The Employee is entitled to payment of Incentive Compensation during the Plan Year. Incentive Compensation is not counted for this purpose if paid following the Employee’s
termination of employment from the Company. 

 To the extent an Employee is eligible to accrue benefits under the SERP based on
increases in his or her salary and/or service during a Plan Year, he or she is ineligible to receive an Executive Profit Sharing Contribution under this Plan for such Plan Year. This paragraph is not intended to preclude an Executive Profit Sharing
Contribution for an Employee whose SERP accruals are attributable solely to interest credits on the underlying PVP benefit. 
  

	4.2	Executive Profit Sharing Contribution Participation 

 An Eligible Employee will become a Participant eligible to receive Executive Profit Sharing Contributions on the date the Employee satisfies the eligibility conditions in Section 4.1. 
 A rehired Employee who previously participated in the Plan will become a Participant again on the date the Employee satisfies the eligibility conditions
again after rehire. 
  

 12 

	4.3	Executive Profit Sharing Contribution Benefits 

 The
Executive Profit Sharing Contribution will equal the applicable percentage of the Participant’s Incentive Compensation payable during the Plan Year. Incentive Compensation is not counted if paid following the Employee’s termination of
employment from the Company. The applicable percentage is determined by the Participant’s age at the end of the Plan Year as follows: 
  

	 	(i)	3%, for each eligible Participant under age 40, 

  

	 	(ii)	4%, for each eligible Participant age 40 to 49, 

  

	 	(iii)	5%, for each eligible Participant age 50 and over. 

 An
Executive Profit Sharing Contribution will be credited to the Participant’s Account at the time the Incentive Compensation would otherwise be payable, or as soon thereafter as administratively feasible. 
  

	4.4	Executive Profit Sharing Contribution Vesting 

 A
Participant’s interest in his or her Account attributable to Executive Profit Sharing Contributions generally will be 100% vested at all times. 
 See Section 7.4 regarding missing participants and improper credits, and Section 10.3 regarding the unfunded nature of this Plan. 
  

 13 

 ARTICLE V 
 DC SERP 
 Eligibility and Benefits 
  

	5.1	DC SERP Eligibility 

 An Employee is eligible to
participate in the DC SERP for a Plan Year if he or she satisfies each of the conditions described in both (A) and (B) below: 
  

	 	(A)	The Employee was hired or rehired on or after January 1, 2009 and is not eligible to accrue benefits under any defined benefit plan maintained by the Company.

 For purposes of determining eligibility for the DC SERP, the term “hired” refers to a Participant’s most
recent date of hire or rehire with the Company, regardless of the date on which the Employee joins the E-Series Payroll, and the term “rehire” does not include a return directly from an Authorized Period of Absence or from a layoff
during the Layoff Period. 
  

	 	(B)	The Employee was on the E-Series Payroll with a level of E-1 through E-3 during the Plan Year. 

 To the extent an Employee is eligible to accrue benefits under the SERP based on increases in his or her salary and/or service during a Plan Year, he or
she is ineligible to receive a DC SERP Benefit under this Plan for such Plan Year. This paragraph is not intended to preclude a DC SERP Benefit for an Employee whose SERP accruals are attributable solely to interest credits on the underlying PVP
benefit. 
  

	5.2	DC SERP Participation 

 An Eligible Employee will
become a Participant in the DC SERP on the date the Employee satisfies the eligibility conditions in Section 5.1. 
 A rehired Employee
who previously participated in the Plan will become a Participant again on the date the Employee satisfies the eligibility conditions again after rehire. 
  

	5.3	DC SERP Benefits 

 Each Participant in the DC SERP
shall be entitled to benefits under this Plan as follows: 
  

	 	(A)	Annual Contributions  

 A Participant will receive a
DC SERP contribution equal to the applicable percentage of the sum of the Participant’s Compensation and Incentive 

  

 14 

 
Compensation, for each applicable pay period. The applicable percentage for a pay period is determined by the Participant’s level as of this pay period
as follows: 
  

	 	(i)	2%, for a Participant at level E-2 through E-3. 

  

	 	(ii)	4%, for a Participant at level E-1. 

 This amount will be
credited on the date such Compensation and Incentive Compensation would otherwise be payable, or as soon thereafter as administratively feasible. 
  

	 	(B)	One-Time Contribution 

 An Employee who satisfies
the requirements described in Section 5.1(A), and who is first promoted to a level of E-1 through E-3 during the Plan Year, will receive a one-time additional contribution equal to the product of (i), (ii) and (iii) below. 

 

	 	(i)	2% 

  

	 	(ii)	The sum of: 

  

	 	(a)	the Participant’s Base Salary in effect immediately following the promotion, and 

  

	 	(b)	his or her Incentive Compensation target percentage multiplied by the Base Salary, both as in effect immediately following the promotion. 

  

	 	(iii)	The Participant’s years of Service as of the date of first promotion to a level of E-1 through E-3. 

 This amount will be credited as of the date of first promotion to a level of E-1 through E-3, or as soon thereafter as administratively feasible.

 A Participant who has received a one-time contribution under this Section upon promotion to a level of E-1 through E-3 will be ineligible
for any further contributions under this subsection (B). 
  

	5.4	DC SERP Vesting 

 No DC SERP Benefit shall be
payable to a Participant or Beneficiary except to the extent such Participant is vested in the DC SERP Benefit. 
  

 15 

	 	(A)	General DC SERP Vesting Rule  

 A Participant will
vest 100% in his or her DC SERP Benefit on the date the Participant satisfies the conditions in either (i), (ii) or (iii) below. 
  

	 	(i)	The Participant has been on the E-Series Payroll at a level of E-1 through E-3 for a period of 36 consecutive months. 

  

	 	(ii)	The Participant dies. 

  

	 	(iii)	The Participant is laid off from a position at level E-1 through E-3 and is eligible for benefits under The Boeing Company Executive Layoff Benefits Plan. 

See (B) below for additional vesting rules for certain Participants. 
  

	 	(B)	Special Vesting Rules for Participants with 55/10 or 62/1 

 Special vesting rules apply for a Participant who has attained either (i) or (ii) while employed by the Company. 
  

	 	(i)	Age 55 with 10 years of Service 

  

	 	(ii)	Age 62 with one year of Service 

 This Participant will be
100% vested in the portion of his or her DC SERP Benefit described in Section 5.3(A) (Annual Contributions) after he or she has been on the E-Series Payroll for a period of 36 consecutive months. 
 This Participant will vest ratably in the portion of his or her DC SERP Benefit described in Section 5.3(B) (One-Time Contribution). Upon Separation
from Service, or upon completion of 36 consecutive months on the E-Series Payroll at a level of E-1 through E-3 if earlier, the Participant’s vesting will be determined at a rate of 1/36 for each consecutive month on the E-Series Payroll at a
level of E-1 through E-3. This pro rata vesting rule is not intended to preclude the acceleration of vesting under subsections (A)(ii) (death) or (iii) (layoff) above. 
  

	 	(C)	Authorized Period of Absence 

 For purposes of this
Section, an Authorized Period of Absence from the E-Series Payroll will count as a period on the E-Series Payroll, and an Authorized Period of Absence from a position at level E-1 through E-3 will count as a period at these levels. 
  

 16 

 If an Employee ceases to be at the applicable level for any reason other than an Authorized Period of
Absence, and the Employee later returns to a position at the applicable level, these non-consecutive periods of service will not be aggregated for purposes of determining whether the 36-consecutive month requirement has been met. 
  

	 	(D)	Transfers to and from ULA and USA 

 For purposes of
computing vesting for a Participant who transfers employment directly from the Company to ULA or USA, uninterrupted service at ULA or USA as an executive in a position at a comparable level will be credited toward the 36 consecutive months
requirements described herein, provided that the Participant transfers directly from the E-Series Payroll (or a position at level E-1 through E-3 if applicable) at the Company to comparable executive status at ULA or USA, as applicable. ULA and USA
service will not be credited toward vesting under this Plan for any period following the Participant’s removal from this executive status. For purposes of computing vesting for a participant who transfers employment directly from ULA or USA to
the Company, uninterrupted service at ULA or USA as an executive at a position comparable to the E-Series Payroll (or a position at level E-1 through E-3, if applicable) will be credited toward the 36 consecutive months requirements described
herein, provided that the Participant transfers directly from this executive status at ULA or USA to a position at a comparable level at the Company. ULA and USA service will not be credited toward vesting under this Plan for any period prior to the
Participant’s attainment of this executive status at ULA or USA, as applicable. 
  

	 	(E)	Impact of Separation from Service 

 If a Participant
retires or Separates from Service (other than a deemed Separation from Service due to an Authorized Period of Absence) before becoming 100% vested in the DC SERP Benefit, the Participant will forfeit all rights to the nonvested portion of the
DC SERP Benefit attributable to the period prior to this Separation from Service. To the extent any benefit under this Plan becomes vested during an Authorized Period of Absence that constitutes a deemed Separation from Service, it will remain
subject to the payment timing rules under Section 6.1. 
 If a Participant Separates from Service after becoming partially vested in the
one-time contribution portion of the DC SERP Benefit, under subsection (B) above, and the Participant is subsequently rehired or returns from an Authorized Period of Absence, the DC SERP Benefit accrued after rehire or return will not be vested
until the Participant satisfies the requirements of subsection (A) or (B) above following rehire or return. 
  

 17 

 If a Participant Separates from Service after becoming 100% vested in the DC SERP Benefit, and the
Participant is subsequently rehired or returns from an Authorized Period of Absence, the DC SERP Benefit accrued after rehire and return will be 100% vested (even if the Participant fails to be at the applicable pay level for 36 consecutive months
following rehire or return). 
 See Section 7.4 regarding missing participants and improper credits, and Section 10.3 regarding the
unfunded nature of this Plan. 
  

	5.5	DC SERP Forfeiture Rules 

 The Committee may
determine, in its sole discretion, that a Participant will forfeit any part or all of his or her DC SERP Benefit (whether or not vested) if any of the following circumstances occur while employed by the Company or within five (5) years after
termination of such employment: 
  

	 	(A)	The Participant is convicted of a felony involving theft, fraud, embezzlement, or other similar unlawful acts against the Company or against the Company’s interests. For
purposes of this Plan, “other similar unlawful acts against the Company or against the Company’s interests” shall include any other unlawful act (i) committed against the Company, or the interests of the Company, including, but
not limited to, a governmental agency or instrumentality which conducts business with the Company, or a customer of the Company, or (ii) affecting the Company or the interests of the Company, in such a manner that is determined to be
detrimental to, prejudicial to or in conflict with the Company or the interests of the Company, as determined by the Committee in its sole discretion. 

  

	 	(B)	The Participant, directly or indirectly, engages in any activity, whether individually or as an employee, consultant or otherwise, which the Committee determines, in its sole
discretion, to be an activity in which the Participant is “engaging in competition” with any significant aspect of Company business. For purposes of this Plan, “engaging in competition” shall include but is not limited to
representing, providing services to, or being an employee of or associated in a business capacity, any person or entity that is engaged, directly or indirectly, in competition with any Company business or that takes a position adverse to any Company
business, regardless of the position or duties the Participant takes, in such a manner that is determined to be detrimental to, prejudicial to or in conflict with the interests of the Company, all as determined by the Committee in its sole
discretion. 

  

	 	(C)	 The Participant, without the advance approval of the Company’s Senior Vice President, Human Resources and Administration, induces or attempts to induce,
directly or indirectly, any of the Company’s employees, 

  

 18 

	 	 
representatives or consultants to terminate, discontinue or cease working with or for the Company, or to breach any contract with the Company, in order to
work with or for, or enter into a contract with, the Participant or any third party. 

  

	 	(D)	The Participant disparages or otherwise makes any statements about the Company, its products, or its employees that could be in any way viewed as negative or critical. Nothing in
this paragraph will apply to legally protected statements to government agencies or statements made in the course of sworn testimony in administrative, judicial, or arbitral proceedings. 

 To the extent the Participant has already received or commenced payment of his or her DC SERP benefit, the Committee will be entitled to pursue any and
all legal and equitable relief against the Participant to enforce the forfeiture of and recover such DC SERP benefit. The forfeiture provisions will continue to apply unless and to the extent modified by a court of competent jurisdiction. However,
if any portion of these forfeiture provisions is held by such a court to be unenforceable, these provisions shall be deemed amended to limit their scope to the broadest scope that such authority determines is enforceable, and as so amended shall
continue in effect. 
 In addition, the Committee will, in all appropriate circumstances, require reimbursement of any DC SERP Benefit
attributable to an incentive award that the Company seeks to recover under the Clawback Policy provision of any plan providing Incentive Compensation. 
  

 19 

 ARTICLE VI 
 Distributions 
  

	6.1	Form and Timing of Distribution 

  

	 	(A)	General Rule  

 A Participant may elect the form and
timing of distribution with regard to his or her Restoration Benefit (including future Deferrals, Matching Credits, Automatic Profit Sharing Contributions, and Earnings Credits thereon) as described below, subject to the cashout rule in subsection
(B) below. This distribution election must be made at the same time the Participant makes his or her Deferral Election (or Automatic Profit Sharing Contribution Election, if earlier). Any election made as to the form and timing of distribution
will apply to the Participant’s entire Restoration Benefit (including Deferrals, Matching Credits, any Automatic Profit Sharing Contributions, and Earnings Credits thereon). 
 No elections are required with regard to a Participant’s Executive Profit Sharing Contribution or DC SERP Benefit. The form and timing of
distribution with regard to these benefits is described in the deemed election rules below. 
 Distribution elections and deemed elections
made with regard to a Participant’s entire Account may be changed solely to the extent permitted under subsection (C) below. 
  

	 	(i)	Lump Sum Distribution 

 The lump sum distribution
option is a single lump sum payable in January of any Plan Year following the Participant’s Separation from Service. The amount of such distribution will be based on the value of the Participant’s Account determined as of the date of
payment. 
 Payment of the Participant’s Restoration Benefit in the form of a lump sum will be made the later of: (i) January of
the first Plan Year following Separation from Service, or (ii) January of the first Plan Year following the Participant’s attainment of a specified age (subject to (D) below), as elected by the Participant under this Section 6.1.

 A Participant will be deemed to have elected to receive his or her Executive Profit Sharing Contribution and DC SERP Benefit in a lump
sum, in January of the first Plan Year following Separation from Service, subject to any changes made by the Participant in Section 6.1(C). 
  

 20 

	 	(ii)	Installment Payment 

 The installment payment
option is a series of annual installment payments for a period between 2 and 15 years. The amount payable to the Participant each year generally shall be computed by multiplying the balance in the Account (or the applicable portion of the Account)
by a fraction, the numerator of which is one and the denominator of which is the number of years remaining in the distribution period on the first day of January of such year. See Section 6.1(B) below for application of the cashout rule to
installment payments. 
 Annual installment payments of the Restoration Benefit, if elected, will begin the later of: (i) January of the
first Plan Year following Separation from Service, or (ii) January of the first Plan Year following the Participant’s attainment of a specified age (subject to (D) below), as elected by the Participant under this Section 6.1.
Payments will continue until the full balance of the Participant’s Restoration Benefit has been paid. 
 The Plan will respect previous
distribution elections made by certain Participants who are former participants in the Boeing Satellite Systems Salaried Employees’ Excess Benefit Plan (“BSS Excess Plan”). For these Participants, any distribution election made prior
to April 4, 2003 under section 3(b)(5) of the BSS Excess Plan will apply, unless the Participant elects otherwise under this Article V. 
 In the event that no distribution option is elected with regard to the Restoration Benefit, the Participant will be deemed to have elected to receive a single lump sum payable in January of the first Plan Year following the
Participant’s Separation from Service. 
  

	 	(B)	Cashouts  

 Notwithstanding the foregoing, the
following rules shall apply, subject to the six-month delay in payment for Specified Employees under (E): 
  

	 	(i)	If the balance in the Participant’s Account is $10,000 or less in January of the first Plan Year following Separation from Service, the entire balance will be paid in the form
of a single lump sum at that time. 

  

 21 

	 	(ii)	If a Participant has elected to receive installments and his or her remaining Account balance is $10,000 or less upon any scheduled payment date, the entire remaining balance will
be paid in the form of a single lump sum at that time. This paragraph (ii) will not apply to any Participant whose installment payments commenced prior to January 1, 2008. 

  

	 	(C)	Changes to Distribution Election or Deemed Election  

 Effective January 1, 2008, a Participant may change a distribution election (or deemed
election) with regard to his or her entire Restoration Benefit only once after the initial distribution election is made, in accordance with the conditions stated below. Effective January 1, 2009, a Participant also may change his or her deemed
distribution election once with regard to his or her combined DC SERP Benefit and Executive Profit Sharing Contributions (if any), in accordance with the conditions stated below. To the extent any such changes would defer commencement of any portion
of the Participant’s Account beyond both age 70 1/2 and Separation from Service, the changes will not be effective with
respect to such portion. 
  

	 	(i)	A new distribution election must be submitted to the Committee at least 12 months before the existing scheduled distribution date, and during the annual election period established
by the Committee. 

  

	 	(ii)	The revised distribution election must not take effect for at least 12 months after it is made. 

  

	 	(iii)	The new distribution election must provide for an additional deferral period of at least 5 years beyond the original distribution date. 

 In no event can installment payments be revoked once they have begun. 
 Prior to January 1, 2008, a Participant may change a distribution election with regard to his or her entire Account, in accordance with procedures established by the Committee, without the restrictions stated in
(i)-(iii) above. Any changes made under this paragraph will be invalid to the extent they affect distributions scheduled for the Plan Year in which the change is made. 
 Limited Exception for 2008. In allowable circumstances (as determined by the Company’s Senior Vice President, Human Resources and
Administration), a Participant will have a limited ability during the 2008 Plan Year to change his or her distribution election without the restrictions stated in (i)-(iii) above, subject to approval by the Company’s Senior Vice President,
Human Resources and Administration, in his or her sole discretion. In no event will an election under this paragraph cause an 

  

 22 

 
amount to be paid during the 2008 Plan Year, if it would otherwise be payable in a later Plan Year. Nor will an election under this paragraph defer a payment
beyond the 2008 Plan Year, if it would otherwise be payable during the 2008 Plan Year. 
  

	 	 (D)
	 Distributions At Age 70 1/2 

 Payment of benefits under this Plan will begin not later than the first January following the calendar year in which the Participant both attains (or would have attained) age 70 1/2 and is Separated from Service. Payment of benefits for Participants actively employed beyond age 70  1/2 will begin no later than the first January following the calendar year in which the Participant Separates from Service. In the event that no distribution option is elected under (A) above,
the Participant will be deemed to have elected to receive a single lump sum distribution. 
  

	 	(E)	Specified Employees 

 Notwithstanding anything to
the contrary under this Article VI, a Specified Employee will not receive any distribution under this Plan during the six-month period immediately following his or her Separation from Service. 
 The Account of a Specified Employee will be distributed in the form elected under subsection (A) above. This distribution will commence as of the
later of: 
  

	 	(i)	the time elected under subsection (A), 

  

	 	(ii)	the first day of the month following completion of the six-month waiting period (for Specified Employees who Separate from Service between July 1 and December 31), and

  

	 	(iii)	January of the first Plan Year following Separation from Service (for Specified Employees who Separate from Service between January 1 and June 30).

 If a Participant has elected installments under (A) above, subsequent installment payments will be made in January of
each successive year until the Account is exhausted. 
 In the event of a Specified Employee’s death during the six-month waiting period,
the waiting period will cease to apply. The Specified Employee’s benefits will be distributed in accordance with Section 6.2 (Death Benefits) below. 
  

 23 

	 	(F)	Distribution Due to Unforeseeable Emergency 

 A
Participant or Beneficiary may elect to receive a distribution of all or a portion of his or her Restoration Benefit and his or her Executive Profit Sharing Contribution benefit immediately, regardless of whether benefit payments have commenced, to
the extent that the Participant or Beneficiary incurs an Unforeseeable Emergency. A Participant or Beneficiary may not receive a distribution of his or her DC SERP Benefit solely in the event of an Unforeseeable Emergency, even if fully vested.

 The amount of the distribution will be limited to the amount reasonably necessary to satisfy the emergency need, including any taxes or
penalties reasonably anticipated to result from the distribution, as determined by the Committee. 
  

	6.2	Death Benefits 

 If a Participant dies before his or
her entire Restoration Benefit has been distributed, the remaining Restoration Benefit will be distributed to his or her Beneficiary in accordance with the Participant’s election as to form and timing filed with the Committee with regard to the
Restoration Benefit. Distributions to the Beneficiary will be made at the same time and in the same form as the payment that otherwise would have been made to the Participant. To the extent no distribution election has been filed with regard to the
Restoration Benefit, the remaining Restoration Benefit will be paid to the Beneficiary in a single sum in January of the calendar year following the Participant’s death. 
 If a Participant dies before his or her entire Executive Profit Sharing Contribution benefit and his or her entire DC SERP Benefit have been distributed,
the remaining benefits will be paid to his or her Beneficiary in accordance with any change to the form and timing of payment elected by the Participant under Section 6.1(C) with regard to the Executive Profit Sharing Contribution and the DC
SERP Benefit. If no change has been elected, the remaining benefits will be distributed to the Participant’s Beneficiary in a single sum in January of the calendar year following the Participant’s death. 
  

	6.3	Rehires 

 This Section 6.3 addresses the form
and timing of payment for a Participant who rehires to the Company following a Separation from Service. For purposes of this Section 6.3, a rehire includes a Participant who returns to the Company following a Separation from Service that is
deemed to occur under Code section 409A due to an Authorized Period of Absence or a period of a reduced level of services. 
 In the event
that a Participant forfeits a nonvested DC SERP Benefit upon a Separation from Service, this benefit will not be restored upon rehire. This rule applies regardless of whether the Participant satisfies the vesting criteria under Section 5.4
following rehire. 
  

 24 

	 	(A)	Participants Rehired After Commencing Benefits 

 This subsection (A) applies to a rehired Participant who has received or begun receiving benefits under the Plan because he or she has experienced a Separation from Service and has attained the specified age (if applicable).

 Old Benefits. Installment payments that commenced prior to the Participant’s rehire with respect to Deferrals and contributions
made before the Participant’s Separation from Service (“Old Benefits”) will not be suspended by reason of the Participant’s rehire. These Old Benefits will continue to be paid until exhausted, without regard to the period of
rehire. 
 Interim Benefits. To the extent a Participant made additional Deferrals or received additional contributions while on an
Authorized Period of Absence or during a period of a reduced level of services that constituted a deemed Separation from Service under Code section 409A, such Deferrals and contributions (to the extent vested) will be distributed in January of the
first Plan Year following the year in which they are made, in accordance with the Participant’s earlier distribution election or deemed election. This is because the Participant has already satisfied the conditions for payment under
Section 6.1(A); namely, he or she has attained the specified age and has experienced a Separation from Service attributable to such Deferrals and contributions. 
 The same rule will apply where the portion of a Participant’s DC SERP Benefit attributable to one-time contributions vests ratably during an Authorized Period of Absence, under Sections 5.4(B) and (C). Such newly
vested benefits will be distributed in January of the first Plan Year following the year in which they vest, in accordance with the Participant’s earlier distribution election or deemed election. 
 New Benefits. Deferrals and contributions attributable to periods after the date of rehire (“New Benefits”) will remain subject to the
Participant’s earlier distribution election or deemed election as to the timing and form of payment under Section 6.1(A) (subject to the change rules in Section 6.1(C)), without regard to any Separation from Service that occurred
prior to rehire. As a result, New Benefits (to the extent vested) will be distributed in January following the Participant’s Separation from Service after rehire, in the form selected under the original distribution election or deemed
election. This is because the Participant already has attained the specified age under Section 6.1(A) but has not yet experienced a Separation from Service attributable to the New Benefits. 
  

 25 

	 	(B)	Participants Rehired Before Commencing Benefits 

 This subsection (B) applies to a rehired Participant who has not begun receiving benefits under the Plan because he or she has not attained the specified age under Section 6.1(A). 
 Old and Interim Benefits. The rehired Participant’s Old Benefits (and any Deferrals made or contributions received during an Authorized Period
of Absence or a period of a reduced level of services, and any DC SERP one-time contributions vested during such period), to the extent vested, will be distributed in accordance with the Participant’s earlier distribution election or deemed
election as to the timing and form of payment under Section 6.1(A) (subject to the change rules in Section 6.1(C)). This means that, for example, if the Participant’s original distribution election selected benefits in the form of a
lump sum (or installments) payable in January following attainment of a specified age under Section 6.1(A), then the Participant’s Old Benefits (and any Deferrals made and contributions received during an Authorized Period of Absence or a
period of a reduced level of services, and any DC SERP one-time contributions vested during such period), to the extent vested, will be payable as a lump sum (or installments, if so elected) in January following the year in which he or she attains
the specified age, even if the Participant has not had a subsequent Separation from Service after rehire. This result will not change in the event that the Participant attains the specified age after the initial Separation from Service (or while on
Authorized Period of Absence or during a period of a reduced level of services), but is rehired before benefits actually begin. 
 New
Benefits. The Participant’s New Benefits will remain subject to the Participant’s earlier distribution election or deemed election as to the timing and form of payment under Section 6.1(A) (subject to the change rules in
Section 6.1(C)), without regard to any Separation from Service that occurred prior to rehire, as described in Section 6.3(A) above. As a result, New Benefits (to the extent vested) will be distributed either (i) in January following
the Participant’s Separation from Service after rehire, or (ii) in January following both the Participant’s Separation from Service after rehire and after attainment of the specified age, in accordance with the original
distribution election or deemed election. This is because the Participant has not yet experienced a Separation from Service attributable to the New Benefits. 
  

 26 

 ARTICLE VII 
 Accounts 
  

	7.1	Participant Accounts 

 The Committee will establish
and maintain an Account for each Participant, for each period of employment. Solely for this purpose, a period of employment will be treated as commencing upon a Participant’s eligibility for the Plan (following hire or rehire as applicable)
and ending with his or her Separation from Service. 
 Each Account will be credited with Deferrals and Matching Credits, Automatic Profit
Sharing Contributions, Executive Profit Sharing Contributions, and DC SERP Benefits, as applicable for the relevant period of employment, as well as Earnings Credits described in Section 7.2 below. Each Account will be reduced as payments are
made. 
 For Heritage BSS Participants, the Accounts shall also include any account as of April 3, 2003 under the BSS Excess Plan, as
adjusted after April 3, 2003 for earnings, losses and expenses. As of April 4, 2003, all accounts of Heritage BSS Participants under the BSS Excess Plan were transferred to this Plan. For purposes of this Section, “Heritage BSS
Participant” means any Participant in this Plan having a prior benefit under the BSS Excess Plan based on his or her participation in the BSS Voluntary Savings Plan. 
  

	7.2	Earnings Credits 

 For periods prior to
January 1, 2009, a Participant’s Accounts will be credited with earnings under the Interest Fund Method described in (A) below. 
 For periods on or after January 1, 2009, a Participant’s Accounts will be credited, at the Participant’s election, with earnings under either: (i) the Interest Fund Method, (ii) the Boeing Stock Fund method, or
(iii) the Other Investment Funds method, each as described below. In the absence of an election the Interest Fund method will be used. A Participant may elect a different earnings method as to each Account. 
  

	 	(A)	Interest Fund Method  

 Under the Interest Fund
Method for periods prior to January 1, 2009, a Participant’s Accounts will be adjusted each month in accordance with changes in the unit value of the Accounts to reflect interest, as of the first business day of that month. Interest will
be calculated based on the value of the Accounts as of the last day of the preceding month. 
 For periods on or after January 1, 2009, a
Participant’s Accounts will be adjusted daily in accordance with changes in the unit value of the Accounts to reflect interest, based on the Participant’s Account balance. 
  

 27 

 Interest will be calculated for each Plan Year as
the mean between the high and low (during the first eleven months of the preceding Plan Year) of yields on AA-rated industrial bonds as reported by Moody’s Investors Service, Inc., rounded to the nearest  1/4th of one percent. The Company
will notify Participants annually of the established interest rate. 
  

	 	(B)	Boeing Stock Fund Method  

 For periods on or after
January 1, 2009, under the Boeing Stock Fund method, a Participant’s Boeing Stock Fund Account shall be credited with the number of shares of the Company’s common stock that could be purchased with the amount credited to such account,
based on the Fair Market Value of the Company’s common stock on the day the account is so credited (or on the next business day on which the New York Stock Exchange (the “Exchange”) is open, if the Exchange is closed on the day the
account is credited) excluding commissions, taxes, and other charges. Such number shall be recorded as stock units in the Participant’s account, for bookkeeping purposes only. For purposes of the Plan, “Fair Market Value” means the
mean of the high and low per share trading prices for the common stock of the Company as reported for the “New York Stock Exchange - Composite Transactions” for a single trading day. The number of stock units in an account shall be
appropriately adjusted to reflect stock splits, stock dividends, and other like adjustments in the Company’s common stock. 
 Each
Participant’s Boeing Stock Fund Account periodically shall be credited with the number of shares of the Company’s common stock that could be purchased, as set forth in the preceding paragraph, with an amount equal to the cash dividends
that would be payable on the number of shares of the Company’s common stock that equals the number of stock units in a Participant’s Boeing Stock Fund Account. The Company will notify Participants annually of the number of stock units, and
the dividend equivalents, credited to their Boeing Stock Fund Account. 
  

	 	(C)	Other Investment Funds Method  

 For periods on or
after January 1, 2009, in addition to the Interest Fund method and Boeing Stock Fund method of allocating earnings, a Participant may choose to diversify each of his or her Accounts by electing that it be credited (or charged) with the
expenses, income, gains and losses on investment funds similar to those offered under the VIP (excluding the Boeing Stock Fund and Stable Value Fund offered thereunder) as designated by the Committee from time to time, pursuant to an election by the
Participant to have the Participant’s Account credited as though the Participant had elected to invest in such funds in such 

  

 28 

 
increments as the Participant will direct in accordance with rules to be established by the Committee or its delegates; provided that the Committee may
disregard such elections in its discretion. 
  

	7.3	Investment Election Changes and Restrictions 

 For
periods on or after January 1, 2009, a Participant may change how future additions to his or her Accounts are invested anytime during the Plan Year. The Participant may also transfer any portion of his or her Accounts from one fund to another
on a daily basis, provided that a Participant may not transfer funds from one investment fund to another and back on the same day. 
 In
addition, transfers cannot be made into the Boeing Stock Fund for 30 calendar days after transferring funds out of the Boeing Stock Fund. This restriction applies regardless of the number of units or the dollar value of the transfer. However, the
Participant may continue to direct future additions into the Boeing Stock Fund and make transfers out of this fund at any time, subject to insider trading rules. 
  

	7.4	Missing Participants and Improper Credits 

 A
Participant’s Account may be forfeited or reduced in the event of one of the following events, even if 100% vested: 
  

	 	(i)	The Committee is unable to locate a Participant or Beneficiary to distribute amounts from his or her Account (a “missing participant”). 

  

	 	(ii)	The Committee recaptures amounts improperly credited to a Participant’s Account. 

 See Section 10.3 regarding the unfunded nature of this Plan. 
  

 29 

 ARTICLE VIII 
 Administration 
  

	8.1	Plan Administration 

 The Plan shall be administered
by the Committee. The Committee shall make such rules, interpretations, determinations of fact and computations as it may deem appropriate. Any decision of the Committee with respect to the Plan, including (without limitation) any determination of
eligibility to participate in the Plan and any calculation of plan benefits, shall be conclusive and binding on all persons. The Committee shall submit to the Compensation Committee of the Board of Directors periodic reports covering the operation
of the Plan. 
  

	8.2	Claims Procedure 

 The procedures for making claims
for benefits under the Plan and for having the denial of a benefits claim reviewed shall be the same as those procedures set forth in the VIP. 
  

 30 

 ARTICLE IX 
 Amendment and Termination 
 The Board of Directors of The Boeing Company shall have the authority to amend or
terminate the Plan at any time. The Board of Directors may delegate its authority to amend the Plan at any time, in its sole discretion. In the event of Plan amendment or termination, a Participant’s benefits under the Plan shall not be less
than the Plan benefits to which the Participant would be entitled if the Participant had terminated employment immediately prior to such amendment or termination of the Plan. 
 In general, upon the termination of the Plan with respect to any Participant, the affected Participants will not be entitled to receive a distribution until the time specified in Article VI. Notwithstanding the
foregoing, The Boeing Company may, in its discretion, terminate the entire Plan and pay each Participant a single lump-sum distribution of his or her entire accrued benefit to the extent permitted under conditions set forth in Code section 409A and
any IRS or Treasury guidance thereunder. 
  

 31 

 ARTICLE X 
 Miscellaneous 
  

	10.1	No Employment Rights 

 Nothing in the Plan shall be
deemed to give any person any right to remain in the employ of the Company or affect any right of the Company to terminate a person’s employment with or without cause. 
  

	10.2	Anti-Assignment 

 No benefit under the Plan shall be
subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, charge, execution, attachment, garnishment, or any other legal process. Any attempt to take such action shall be void and shall authorize the
Committee, in its sole and absolute discretion, to forfeit all further right and interest in any benefit under this Plan. In addition, a Participant’s Account may be reduced by the amount of any tax obligation paid by the Company on behalf of a
Participant or surviving spouse, if the Participant or surviving spouse fails to reimburse the Company for such obligation. 
  

	10.3	Unfunded Status of Plan 

 No funds shall be
segregated or earmarked for any current or former participant, Beneficiary or other person under the Plan. However, the Company may establish one or more trusts to assist in meeting its obligations under the Plan, the assets of which shall be
subject to the claims of the Company’s general creditors. No current or former Participant, Beneficiary or other person, individually or as a member of a group, shall have any right, title or interest in any account, fund, grantor trust, or any
asset that may be acquired by the Company in respect of its obligations under the Plan (other than as a general creditor of the Company with an unsecured claim against its general assets). 
  

	10.4	Delays in Payment 

 Payment of benefits under this
Plan may be delayed to the extent permitted by Code section 409A, as determined by the Committee. 
  

	10.5	Involuntary Inclusion in Income 

 If a determination
is made that the Account of any Participant (or his or her Beneficiary) is subject to current income taxation under Code section 409A, then the taxable portion of such Account will be immediately distributed to the Participant (or his or her
Beneficiary), notwithstanding the general timing rules described in Article V above. 
  

 32 

	10.6	Compliance With Code Section 409A 

 It is
intended that amounts deferred under this Plan will not be taxable under section 409A of the Code with respect to any individual. All provisions of this Plan shall be construed in a manner consistent with this intent. 
  

	10.7	Construction 

 The validity of the Plan or any of
its provisions will be determined under and will be construed according to federal law and, to the extent permissible, according to the internal laws of the state of Illinois. If any provision of the Plan is held illegal or invalid for any reason,
such determination will not affect the remaining provisions of the Plan and the Plan will be construed and enforced as if said illegal or invalid provision had never been included. 
  

	10.8	Legal Action 

 No legal action may be brought in
court on a claim for benefits under the Plan after 180 days following the decision on appeal (or 180 days following the expiration of the time to make an appeal if no appeal is made). 
  

 33 

 APPENDIX A 
 Boeing Satellite Systems 
 Salaried Employees’ Excess Benefit Plan

  

	I.	PURPOSE. 

 In July 1998, Hughes Space and Communications
Company, Hughes Electron Dynamics, Inc. and Spectrolab, Inc. (“Hughes”) adopted a special appendix (the “Hughes Appendix”) to the Hughes Excess Plan. Individuals affected by the Hughes Appendix are referred to in this Special
Appendix as “Hughes Participants”. 
 That Hughes Appendix was adopted to provide certain Hughes Participants whose benefits from
the Hughes Retirement Plan were initially miscalculated an election to receive alternative benefits. These benefits are referred to as the “Substitute Benefit”. 
 The initial miscalculation for these Hughes Participants was the subject of a filing with the Internal Revenue Service under the Voluntary Compliance Resolution (“VCR”) program on August 22, 1997. On
January 28, 1998, the Internal Revenue Service issued a compliance statement concerning the VCR application. Under the compliance statement, Hughes corrected the miscalculation by reducing the benefits payable to the affected Hughes
Participants under the Hughes Retirement Plan from the initially calculated amount. Under the correction approved by the IRS in the VCR application, payments under the Hughes Retirement Plan would continue at the monthly amount originally scheduled
under the initial calculation. When the actuarial equivalent value of a Hughes Participant’s benefits paid under the Hughes Retirement Plan reaches the maximum limit imposed by section 415 of the Code, then the remaining payments to the Hughes
Participant will be made under the Hughes Excess Plan. The benefits which were originally scheduled for payment under the Hughes Retirement Plan under the initial calculation, but which will instead be paid pursuant to the Hughes Excess Plan after
the maximum limit of section 415 has been reached, are referred to in this Appendix as the “Reclassified Payments.” Benefits paid under the Hughes Retirement Plan are not considered Reclassified Payments, even if the payments exceeded the
limits of section 415 of the Code and therefore are not afforded the tax treatment (including the ability to elect a rollover) afforded to qualified plan payments. 
 As a result of the initial miscalculation, some benefit payments from the Hughes Retirement Plan which Hughes Participants rolled over into their individual retirement accounts were withdrawn to avoid or minimize
excise taxes (“Required IRA Withdrawals”). Hughes Participants who made Required IRA Withdrawals were entitled to elect the Substitute Benefit. 
  

 34 

 Furthermore, certain Hughes Participants received payments from the Hughes Retirement Plan in 1998 which
were in excess of the maximum benefit allowed by Code section 415 under the method of calculating the maximum benefit as described in the VCR application (“1998 Excess Payments”). Such Hughes Participants were entitled to elect the
Substitute Benefit. 
 In addition, under their original benefit elections, certain Hughes Participants were scheduled to have received
Reclassified Payments which were not yet paid as of July 31, 1999. Such Hughes Participants were entitled to elect the Substitute Benefit. 
 Under the Hughes Appendix, each affected Hughes Participant was given an election to be paid the Substitute Benefit. In order to elect the Substitute Benefit, a Hughes Participant must have signed and delivered to Hughes a written release
in the form and manner acceptable to Hughes. The Substitute Benefit was provided in consideration for the Hughes Participant’s agreement, made pursuant to the release, to forego legal action against Hughes and the other persons specified in the
release. 
 This Special Appendix is intended to provide the unpaid balance of the Substitute Benefit to Hughes Participants who are Acquired
Hughes Participants. Only Acquired Hughes Participants are affected by this Special Appendix to the Plan. 
 Effective as of April 4,
2003, this Appendix A was transferred in its entirety from the Boeing Satellite Systems Salaried Employees’ Excess Benefit Plan to the Plan. 
  

	II.	ELECTION AND CALCULATION OF SUBSTITUTE BENEFIT. 

  

	 	A.2.1  Election	of Substitute Benefit. 

 The following Hughes
Participants were provided an opportunity to elect the Substitute Benefit: (1) Hughes Participants for whom Reclassified Payments were to be made on or after August 1, 1998, (2) Hughes Participants who received 1998 Excess Payments,
and (3) Hughes Participants who made Required IRA Withdrawals. The election of the Substitute Benefit was made in the time and manner prescribed by Hughes. The election must have specified the date on which the Hughes Participant elected to
commence payment of the Substitute Benefit, which must have been a date which was the first through fifteenth anniversary of the Hughes Participant’s “Deferral Start Date.” The Deferral Start Date for a Hughes Participant is the later
of (x) August 1, 1998, or (y) the day as of which the initial Reclassified Payment would have been scheduled for payment to the Hughes Participant, but for the election to receive the Substitute Benefit. The election must have
specified whether the Hughes 

  

 35 

 
Participant elected payment in a single installment, two substantially equal annual installments, or five substantially equal annual installments. The
election must have been accompanied by a properly executed release acceptable to Hughes. If a Hughes Participant did not effectively elect the Substitute Benefit, then the Hughes Participant’s remaining Reclassified Payments (if any) would be
made to the Hughes Participant pursuant to the general provisions in the Hughes Excess Plan applicable to payments attributable to the Hughes Retirement Plan, as contemplated in the VCR application. 
 Any election described above by an Acquired Hughes Participant will continue to apply under this Special Appendix. Any Acquired Hughes Participant who did
not make an effective election will continue to have his or her remaining Reclassified Payments (if any) made pursuant to the general provisions in the Plan (as successor to the Hughes Excess Plan) applicable to payments attributable to the
Retirement Plan (as successor to the Hughes Retirement Plan), as contemplated in the VCR application. 
  

	 	A.2.2	  Calculation of Substitute Benefit. 

 If
a Hughes Participant elected the Substitute Benefit, then in lieu of payment from the generally applicable provisions of the Hughes Excess Plan of the Hughes Participant’s remaining Reclassified Payments (if any), the Substitute Benefit became
payable. The Substitute Benefit was the amount credited to the Hughes Participant’s Hughes Account, calculated as described in Section A.2.4(a) of this Appendix. 
  

	 	A.2.3	  Definitions. 

  

	 	a.	Suspended Payments. 

 Certain Hughes Participants
elected a short-term deferral of Reclassified Payments which, but for such election, would have been paid between January 1, 1998 and July 1, 1998. Under this Appendix, the term “Suspended Payments” refers to the Reclassified
Payments which were subject to the short-term deferral described in the preceding sentence. 
  

	 	b.	Proximate Reclassified Payments. 

 The term
“Proximate Reclassified Payments” refers to those Reclassified Payments (other than Suspended Payments) which, in the absence of an election of the Substitute Benefit, would have been scheduled for payment under the Hughes Excess Plan on
or prior to July 1, 1999. 
  

 36 

	 	c.	Distant Reclassified Payments. 

 The term
“Distant Reclassified Payments” refers to Reclassified Payments which, in the absence of an election of the Substitute Benefit, would have been scheduled for payment under the Hughes Excess Plan after July 1, 1999. Distant
Reclassified Payments may be recalculated to reflect how the Retirement Plan implemented the repeal of section 415(e) of the Code. 
  

	 	d.	Settlement Credit. 

 The term “Settlement
Credit” refers to an amount calculated for each Hughes Participant which is the greater of (i) or (ii) below: 
  

	 	(i)	The amount under this item (i) equals ten percent (10%) of the sum of (aa) the Hughes Participant’s Suspended Payments (if any), plus (bb) the Hughes
Participant’s Proximate Reclassified Payments (if any). 

  

	 	(ii)	The amount under this item (ii) equals (aa) the sum of (x) the Hughes Participant’s Required IRA Withdrawals (if any) and (y) the Hughes Participant’s 1998
Excess Payments (if any), times (bb) a percentage not to exceed fifty-five percent (55%), determined according to the date elected by the Hughes Participant for payment of the Substitute Benefit. For each of the first five full years after
August 1, 1998 that payment is deferred, the percentage will increase by five percent (5%), and for each of the next ten additional full years that payment is deferred, the percentage will increase by three percent (3%). Thus, for a Hughes
Participant who elected payment of the Substitute Benefit on July 31, 2013 (a total deferral of 15 years), the percentage is fifty-five percent (55%). 

  

	 	e.	Acquired Hughes Participant. 

 The term
“Acquired Hughes Participant” means any person who became a Participant or a Former Participant under the terms of the Employee Matters Agreement between The Boeing Company and Hughes Electronics Corporation. 
  

	 	f.	Hughes Retirement Plan. 

 The term “Hughes
Retirement Plan” means the Hughes Non-Bargaining Retirement Plan. 
  

 37 

	 	A.2.4  	BSS Account. 

  

	 	a.	Hughes Account 

 Hughes established an account, for
bookkeeping purposes only, for each Hughes Participant who elected the Substitute Benefit (the “Hughes Account”). The Hughes Account was to be credited as follows: 
  

	 	(i)	The Hughes Account of a Hughes Participant who elected the Substitute Benefit was initially credited, as of August 1, 1998, by (aa) the sum of the Hughes
Participant’s Suspended Payments (if any), plus (bb) interest on the Hughes Participant’s Suspended Payments (if any) at the rate of one-half percent (0.5%) per month from the date each payment would have been made but for the suspension
through July 31, 1998, plus (cc) the Hughes Participant’s Settlement Credit (if any). 

  

	 	(ii)	As of the date that each Proximate Reclassified Payment and Distant Reclassified Payment would have been made (but for the Hughes Participant’s election of the Substitute
Benefit), commencing with the Reclassified Payment which would have been made August 1, 1998, the Hughes Account was credited with the amount of such Reclassified Payment. In addition, if Reclassified Payments were made to a Hughes Participant
in January through March, 1998, then the Hughes Participant who elected the Substitute Benefit was allowed to elect that his regularly-scheduled payments from the Hughes Excess Plan be credited to the Hughes Account as of the date such payments
would otherwise have been made. The amount of the regularly-scheduled payments to be credited to the Hughes Account must not exceed the amount by which such Reclassified Payments increased his taxable income for 1998, as determined by Hughes.

  

	 	(iii)	 As of the last day of each month, through the month specified below, the unpaid amount of the Hughes Account is increased by interest at a monthly rate of 0.7591%
(approximately an equivalent annual rate of 9-1/2% compounded monthly). The duration of interest credits depends upon the payout election made by the Hughes Participant pursuant to Section A.2.1 of the Appendix. Interest is credited though the last
day of the month immediately preceding the month for which the final 

  

 38 

	 	 
payment of the Substitute Benefit is made for any Hughes Participant who (aa) elected payment in a single sum, (bb) elected payment in two substantially
equal installments, or (cc) elected payment in five installments commencing on or before the eleventh anniversary of the Hughes Participant’s Deferral Start Date. Interest is to be credited through the last day of the month immediately
preceding the month for which the initial installment payment of the Substitute Benefit is made for any Hughes Participant who elected payment in five installments commencing on or after the twelfth anniversary of the Hughes Participant’s
Deferral Start Date, and no interest may be credited for such Hughes Participant on or after the date installments commence. 

  

	 	b.	Continuation as BSS Account 

 On the Closing Date,
the Company shall establish an account, for bookkeeping purposes only, for each Acquired Hughes Participant who elected the Substitute Benefit (the “BSS Account”). The BSS Account shall be credited as follows: 
  

	 	(i)	The BSS Account shall be initially credited with the unpaid amount of the Acquired Hughes Participant’s Hughes Account under the Hughes Excess Plan as of the Closing Date.

  

	 	(ii)	As of the date that each Distant Reclassified Payment would have been made (but for the Hughes Participant’s election of the Substitute Benefit), commencing with the first
Distant Reclassified Payment payable after the Closing Date, the BSS Account will be credited with the amount of such Distant Reclassified Payment. 

  

	 	(iii)	 As of the last day of each month, through the month specified below, the unpaid amount of the BSS Account is increased by interest at a monthly rate of 0.7591%
(approximately an equivalent annual rate of 9-1/2% compounded monthly). (If the month specified below occurred prior to the Closing Date, then no interest credits will be made to the BSS Account). The duration of interest credits depends upon the
payout election made by the Acquired Hughes Participant pursuant to Section A.2.1 of the Appendix. Interest is credited though the last day of the month immediately preceding the month for which the final payment of the Substitute Benefit is made
for any Acquired Hughes Participant who (aa) elected payment in a single 

  

 39 

	 	 
sum, (bb) elected payment in two substantially equal installments, or (cc) elected payment in five installments commencing on or before the eleventh
anniversary of the Hughes Participant’s Deferral Start Date. Interest is to be credited though the last day of the month immediately preceding the month for which the initial installment payment of the Substitute Benefit is made for any
Acquired Hughes Participant who elected payment in five installments commencing on or after the twelfth anniversary of the Acquired Hughes Participant’s Deferral Start Date, and no interest may be credited for such Acquired Hughes Participant
on or after the date installments commence. 

  

	 	A.3.1  	Payment During Hughes Participant’s Life. 

 The
BSS Account will be paid to the Acquired Hughes Participant as specified in the election described in Section A.2.1 of this Appendix. 
  

	 	A.3.2  	Payment Following Hughes Participant’s Death. 

 The unpaid balance of the BSS Account will be paid to the Acquired Hughes Participant’s Beneficiary as follows. 
 Unless the
Hughes Participant elected otherwise, one-half of the unpaid balance of the BSS Account shall be paid as soon as feasible following the Acquired Hughes Participant’s death and the remaining one-half shall be paid in January of the following
year. 
 Each Hughes Participant was entitled to elect, at the time of the Hughes Participant’s election under Section A.2.1 of this
Appendix, that the benefit payable to the Beneficiary following the death of the Hughes Participant shall be made at the time and in the manner payment would have been made to the Hughes Participant during the Hughes Participant’s life. This
election will continue to apply to Acquired Hughes Participants. 
 If Reclassified Payments remain unpaid following payment of the BSS
Account to the Beneficiary, then the Reclassified Payments shall be paid to the Beneficiary at the time the Reclassified Payments would have been paid but for the election of the Substitute Benefit. Unless an Acquired Hughes Participant elects
otherwise, the Beneficiary for purposes of this Appendix shall be the Beneficiary otherwise designated under the Retirement Plan. The Acquired Hughes Participant shall be entitled to name a different Beneficiary for purposes of this Appendix.

  

 40 

	IV.	MISCELLANEOUS PROVISIONS. 

  

	 	A.4.1  	General. 

 This Appendix is incorporated by
reference into the Plan as if set forth fully therein. Any capitalized terms used in this Appendix which are not defined in this Appendix shall have the meanings specified in the Plan. 
  

	 	A.4.2  	Elections Irrevocable. 

 Elections by a Hughes
Participant under this Appendix are irrevocable. 
  

	 	A.4.3  	Defense Retirees. 

 In 1997, the Hughes’
defense businesses were acquired by Raytheon Company. As part of that transaction, the Hughes and Raytheon Company agreed that the liabilities of the Plan and the assets and liabilities of the Retirement Plan attributable to defense employees and
retirees will be transferred to plans sponsored by Raytheon Company. Accordingly, the provisions of this Appendix apply only to non-defense retirees, and no benefit is created under this Appendix for defense retirees. 
  

	 	A.4.4  	Section 415 Changes. 

 Code section 415(e) was
repealed effective for limitation years beginning on or after January 1, 2000. The repeal may increase the limitation on benefits payable from the Retirement Plan to some or all Acquired Hughes Participants who elected the Substitute Benefit.
The Company reserves the right to pay the Substitute Benefit from the Retirement Plan in lieu of the benefits payable hereunder to the extent permitted by law. 
  

 41 

 APPENDIX B 
 Plan Provisions Prior To January 1, 1999 
  

	B1.1  	Eligibility and Benefits for BCERP Participants 

 Prior to
January 1, 1999, this Plan offered certain benefits to participants in the BCERP whose benefits were affected by the limitations on benefits or contributions imposed by section 415 and 401(a)(17) of the Code. Effective January 1, 1999,
certain of those participants were transferred to the SERP and ceased to be eligible for benefits under this Plan based upon their participation in the BCERP. To the extent any participant eligible for benefits under this Plan based upon his or her
participation in the BCERP was not transferred to the SERP, such participant shall remain eligible to participate in this Plan and to receive such benefits. Effective January 1, 2008, all such benefits remaining under this Plan have commenced
and are not subject to the deferral and distribution rules under Articles IV & V of the 2008 restatement. 
 With respect to the BCERP, the benefits
under this Plan represent the difference between the actual benefits of a Participant under the BCERP and the benefits that would have been payable under that plan except for the limitations on benefits imposed by sections 415 and 401(a)(17) of the
Code. The benefits payable under this Plan with respect to the BCERP were payable to the Participant or to any other person who is receiving or entitled to receive benefits with respect to the Participant under the BCERP, and were paid in the same
form, at the same times and for the same period as benefits were paid with respect to the Participant under the BCERP. 
 Notwithstanding the foregoing, if
the Actuarial Equivalent of the benefit payable under this Plan with respect to the BCERP was $10,000 or less, the Actuarial Equivalent value of the benefit was paid in the form of an automatic lump sum at the same time as benefits began or were
paid under the BCERP. Actuarial Equivalent is defined in the BCERP. This paragraph applies to Participants who retire or begin receiving termination benefits under the BCERP on or after February 1, 1997, and for this purpose the Actuarial
Equivalent shall be determined as of the Participant’s Retirement Date under the Employee Retirement Plan. This paragraph shall also apply to Participants who are receiving benefits under this Plan as of February 1, 1997, and for this
purpose the Actuarial Equivalent shall be determined with respect to each participant’s remaining benefits payable under this Plan determined as of February 1, 1997. 
 Effective January 1, 1999, any Employee who is eligible to participate in the SERP shall no longer be entitled to any benefit under this Appendix B1.1. To the extent any such Employee is determined to be entitled
to a benefit under this Appendix B1.1 of the Plan, such benefit shall be offset by any benefits received under the SERP. Any Employee who was a Participant in this Plan as of December 31, 1998 and eligible for a benefit under this Appendix B1.1
shall remain eligible for such benefit unless and until such Employee becomes eligible to participate in the SERP. The Plan will respect beneficiary 

  

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designations made by a Participant at the time of commencement of the benefit under this Section B.1.1, notwithstanding any contrary definition of
Beneficiary under the Plan. 
  

	B1.2  	Eligibility and Benefits for FSP Participants 

 Prior to
January 1, 1999, salaried employees who were not represented by a collective bargaining agent were eligible to participate in the FSP. Accordingly, participants in the FSP were eligible to participate in this Plan prior to that date, to the
extent that their FSP benefits were limited by Code sections 415 and 401(a)(17). 
 The benefits under this Plan with respect to a particular year were the
additional benefits that would have been payable under the FSP if the reduction on contributions and other additions had not been made. All amounts deferred under this Plan were credited to the Accounts of Participants at the time such amounts would
otherwise have been credited to their accounts under the FSP. 
 For periods before January 1, 2009, a Participant’s Account is credited with
interest in accordance with the Interest Fund method under Section 7.2 (Earnings Credits Methods). 
 For periods on or after January 1, 2009, a
Participant’s Account is credited with earnings in accordance with the method elected by the Participant under Section 7.2 (Earnings Credits Methods). 
 The benefits payable under this Plan with respect to the FSP will be payable to the Participant in accordance with the distribution rules under Article VI. 
  

 43

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