Document:

Exhibit 10.12(b)

 

AMENDMENT NUMBER ONE TO THE 2004 RESTATEMENT
OF THE

SKYWEST, INC. EMPLOYEES’ RETIREMENT PLAN

 

This Amendment Number One to the 2004 Restatement of the SkyWest, Inc.
Employees’ Retirement Plan (the “Plan”) is hereby adopted effective January 1,
2004.

 

WHEREAS, SkyWest, Inc. (the “Company”) maintains the Plan for the
benefit of its employees and the employees of its participating subsidiaries;
and

 

WHEREAS, the Plan provides for “ADP” and “ACP” testing using the “prior
year testing method”;” and

 

WHEREAS, it is necessary and desirable to amend the Plan to provide for
“ADP” and “ACP” testing using the “current year testing method” described in
Treasury Regulation Section 1.401(k)-2(a)(2); and

 

WHEREAS, the Company has reserved the right to amend the Plan.

 

NOW, THEREFORE, the Plan is hereby amended as follows:

 

1.             Sections 4.6(a) and
(b) of the Plan document are amended to read as follows, retroactively
effective to January 1, 2004:

 

“(a)         For
each Plan Year (“Testing Year”), the annual “ADP” for the Highly Compensated
Participant group for the Testing Year shall not exceed the greater of 125% of:
(1) the “ADP” of the Non-Highly Compensated Participant group for the Testing
Year in question, multiplied by 1.25, or (2) the lesser of (x) 200% of the ADP
of the Non-Highly Compensated Participant group for the Testing Year or (y) the
Non-Highly Compensated Participant group ADP for the Testing Year, plus two
percentage points.  The provisions of
Code Section 401(k)(3) and Regulation Section 1.401(k)-1(b) are incorporated
herein by reference.

 

(b)           For
the purposes of this Plan “ADP” means, with respect to any Participant group
for a Testing Year, the average of the ratios, calculated separately for each
Participant in that group, whether or not contributing, of the amount of
Elective Contributions allocated to each Participant’s Elective Account for
such year to such Participant’s Compensation for such year.  The actual deferral ratio for each
Participant and the “ADP” for each group shall be calculated to the nearest
one-hundredth of one percent.  Employer
Elective Contributions allocated to each Non-Highly Compensated Participant’s
Elective Account shall be reduced by Excess Deferred Compensation to the extent
such excess amounts are made under this Plan or any other plan maintained by
the Employer and by any matching contributions which relate to such Excess
Deferred Compensation.”

 

1

 

2.             Section
4.6(e) of the Plan document is amended to read as follows retroactively
effective to January 1, 2004:

 

“(e)” When calculating the “ADP” for the
Non-Highly Compensated Participant group, the current year testing method shall
be used.  Any change from the current
year testing method to the current year testing method shall be made pursuant
to Treasury Regulation Section 1.401(k)-2(c) and Internal Revenue Service
Notice 98-1, Section VII (or superseding guidance), the provisions of which are
incorporated herein by reference.

 

3.             Section
4.8(a) and (b) of the Plan document is amended to read as follows,
retroactively effective to January 1, 2004:

 

“(a)         For
each Plan Year (“Testing Year”), the “ACP” for the Highly Compensated
Participant group for that Testing Year shall not exceed the greater of:  (1) 125% of the ACP of the Non-Highly
Compensated Participant group for the Testing Year in question; or (2) the
lesser of (x) 200% of the ACP of the Non-Highly Compensated Participant group
for the Testing Year or (y) the ACP for the Non-Highly Compensated Participant
group for the Testing Year plus two percentage points.  The provisions of Code Section 401(m) and
Regulation Sections 1.401(m)-1(b) and 1.401(m)-2 are incorporated herein by
reference.

 

(b)           “ACP”
for a Testing Year with respect to any Participant group, means the average of
the ratios (calculated separately for each Participant in each group and
rounded to the nearest one-hundredth of one percent) of:  (1) the sum of Employer matching
contributions made pursuant to Section 4.1(b) (to the extent such matching
contributions are not used to satisfy the “ADP” tests), after-tax voluntary
Employee contributions made pursuant to Section 4.13 and Excess Contributions
recharacterized as after-tax voluntary Employee contributions pursuant to
Section 4.7(a) on behalf of each such Participant for such year; to (2) the
Participant’s Compensation for such year.”

 

4.             Section
4.8(g) of the Plan document is amended to read as follows retroactively
effective to January 1, 2004:

 

“(g)” When calculating the “ACP” for the
Non-Highly Compensated Participant group, the current year testing method shall
be used.  Any change from the current
year testing method to the current year testing method shall be made pursuant
to Treasury Regulation Section 1.401(k)-2(c) and Internal Revenue Service Notice
98-1, Section VII (or superseding guidance), the provisions of which are
incorporated herein by reference.

 

5.             
Except as provided above, the Plan is hereby ratified and confirmed in all
respects.

 

 

(Remainder
of page intentionally left blank; signature page follows)

 

2

 

IN TESTIMONY WHEREOF, SkyWest, Inc. has caused this Amendment Number
One to be executed by its duly authorized officer this 15th day of
March, 2005.

 

	
   

  	
  SKYWEST, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Bradford R. Rich

  	
   

  
	
   

  	
  Its: 

  	
  Executive Vice President, Chief Financial

  
	
   

  	
   

  	
  Officer and Treasurer

  
	
   

  	
  Name: Bradford R. Rich

  

 

3Exhibit 10.12(c)

 

AMENDMENT NUMBER TWO TO THE 2004 RESTATEMENT
OF THE

SKYWEST, INC. EMPLOYEES’ RETIREMENT PLAN

 

This Amendment Number Two to the 2004 Restatement of the SkyWest, Inc.
Employees’ Retirement Plan (the “Plan”) is hereby adopted this 22nd
day of December, 2005 to be effective as set forth below.

 

WHEREAS, SkyWest, Inc. (the “Company”) maintains the Plan for the
benefit of its employees and the employees of its participating subsidiaries;
and

 

WHEREAS, it is necessary and desirable to amend the Plan to reduce the
threshold for mandatory cash-out distributions under the Plan from $5,000 to
$1,000; and

 

WHEREAS, on March 15, 2005 the Company adopted Amendment Number One to
the Plan on March 15, 2005 changing the Plan’s ADP and ACP testing methods from
the “prior year method” to the “current year method” (“Amendment One”); and

 

WHEREAS, it is necessary and desirable to correct the effective date
stated in Amendment One to read “January 1, 2005;” and

 

WHEREAS, the Company has reserved the right to amend the Plan.

 

NOW, THEREFORE, the Plan is hereby amended as follows:

 

1.             Section 6.2(c) of the
Plan document is amended to read as follows effective March 28, 2005:

 

“(c)         Notwithstanding
Section 6.2(b) above, if a former Participant’s Vested Benefit exceeds $1,000,
the Participant is entitled to elect to receive distribution in the form of
either (i) a lump sum payment of his entire account balance, or (ii) monthly,
quarterly, semi-annual or annual cash payments over a designated period certain
subject to the following rules:

 

(1)           The
Participant must designate in writing on such forms as the Administrator
provides for this purpose, the payout period over which any installment
distribution is to be made.  Once the
installment method and payout period is elected, the Participant may not modify
that election other than to cancel the election and receive an immediate lump
sum distribution of any then-remaining Vested Benefit on such forms as the Plan
Administrator provides for that purpose.

 

(2)           The
period of installment payments elected may not exceed the life expectancy of
the Participant or the joint life expectancy of the Participant and his
designated Beneficiary at the time distribution begins or otherwise cause the
Plan to violate the provisions of Section 6.4 below or Code Section 401(a)(9).

 

1

 

(3)           The
amount of each such periodic installment payment shall equal the product of (i)
the Participant’s account balance on the Valuation Date immediately preceding the
date of distribution (or such other Valuation Date as the Administrator
reasonably determines); multiplied by (ii) a fraction the numerator of which is
one and the denominator of which is the sum of one plus the remaining periodic
distributions to be made after the installment in question.  The final installment payment shall be an
amount equal to the Participant’s entire remaining Vested Benefit.”

 

2.             Section
6.2(e) of the Plan document is amended to read as follows effective March 28,
2005:

 

“(e)         If
a Participant’s Vested Benefit exceeds $1,000, the following provisions shall
apply to that Participant:

 

(1)           The
Plan cannot make distribution to the Participant without his consent until he
attains age 65.  This restriction shall
cease to apply when the Participant dies. 
If the Participant does not consent to a pre-age 65 distribution of his
Vested Benefit following termination of his employment with an Employer,
distribution of his Vested Benefit shall be deferred until he attains age 65
unless the Participant (and in the case of any Transfer/Rollover Account
subject to Section 6.5 below, the Participant’s spouse) later consents to a
pre-age 65 distribution;

 

(2)           The
Participant may elect to defer the commencement of benefits beyond age 65 to a
Participant-designated date that is no later than the minimum required
distribution deadline imposed under Section 6.4 below.  Any election by a Participant to defer
distribution shall be made on such forms and in accordance with such uniform
procedures as the Administrator determines; and

 

(3)           Where
required under this Section 6.2(e), the consent of the Participant (and, if
applicable, his spouse) to commencement of distribution prior to attaining age
65 shall be obtained in writing within the 90-day period ending on the “distribution
starting date.”  The “distribution
starting date” is the first day of the first period for which an amount is paid
in any form.  The Plan Administrator
shall notify the Participant of the right to defer any distribution until the
Participant attains age 65. The notice shall include a general description of
the material features, and an explanation of the relative values of, the
optional forms of benefit available under the Plan in a manner that would
satisfy the notice requirements of Section 417(a)(3) of the Code and Section
6.5(e) below, and shall be provided no less than 30 days and no more than 90
days prior to the distribution starting date. 
The Participant (and, if applicable, spouse) shall have at least 30 days
from the date of the notice to elect or reject an immediate distribution, but
may waive the 30-day waiting period.

 

This
subsection 6.2(e) shall not apply to any Participant other than a Participant
described in the first sentence of this subsection 6.2(e).”

 

2

 

3.             Section
6.3(d) of the Plan document is amended to read as follows effective March 28,
2005:

 

“(d)         Notwithstanding
Section 6.3(c) above, if the deceased Participant’s Vested Benefit at the time
of death exceeds $1,000, then subject to Section 6.4 below the Beneficiary may
elect as follows:

 

(1)           To
receive distribution in the form of either (i) a lump sum payment of the
deceased Participant’s entire remaining Vested Benefit, or (ii) monthly,
quarterly, semi-annual or annual cash payments over a designated period certain
subject to the following rules:

 

(i)            The
Beneficiary must designate in writing on such forms as the Administrator
provides for such purpose the period over which any installment distribution is
to be made.  Once the installment method
and payout period is elected, the Beneficiary may not modify that election
other than to by electing on such forms as the Plan Administrator provides for
this purpose to cancel the election and receive an immediate lump sum distribution
of any then-remaining account balance.

 

(ii)           The
period of installment payments elected may not exceed the life expectancy of
the Beneficiary at the time distribution begins or otherwise cause the Plan to
violate the provisions of Section 6.4 below or Code Section 401(a)(9).

 

(iii)          The
amount of each such periodic installment payment shall equal the product of (i)
the account balance on the Valuation Date immediately preceding the date of
distribution (or such other valuation Date as the Administrator reasonably
determines); multiplied by (ii) a fraction the numerator of which is one and
the denominator of which is the sum of one plus the remaining periodic
distributions to be made after the installment distribution in question.  The final installment payment shall be an
amount equal to the Beneficiary’s entire remaining account balance.

 

(2)           The
Beneficiary may elect to defer the commencement of benefits to a
Beneficiary-designated date that is no later than the minimum required
distribution deadline imposed under Section 6.4 below, or by Code Section
401(a)(9).  Any election by a Beneficiary
to defer distribution shall be made on such forms and in accordance with such
uniform procedures as the Administrator determines.

 

This Section
6.3(d) shall only apply if the deceased Participant’s Vested Benefit at the
time of death exceeds $1,000.”

 

3

 

4.             The
second sentence of Section 6.8 of the Plan document is amended to read as
follows effective March 28, 2005:

 

“Notwithstanding the foregoing, if the value of a Participant’s Vested
benefit derived from Employer and Employee contributions does not exceed
$1,000, then the amount distributable may, in the sole discretion of the
Administrator; either be treated as a forfeiture and applied to reduce Employer
matching contributions for the year of forfeiture and succeeding Plan Years
until fully applied, or be paid directly to an individual retirement account
described in Code Section 408(a) or an individual retirement annuity described
in Code Section 408(b) at the time it is determined that the whereabouts of the
Participant or the Beneficiary cannot be ascertained.”

 

5.             The
effective dates of Amendment Number One and the changes to the Plan set forth
therein are hereby amended to read “January 1, 2005.”

 

6.             
Except as provided above, the Plan is hereby ratified and confirmed in all
respects.

 

IN TESTIMONY WHEREOF, SkyWest, Inc. has caused this Amendment Number Two
to be executed by its duly authorized officer this 22nd day of December,
2005.

 

	
   

  	
  SKYWEST, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Bradford R. Rich

  	
   

  
	
   

  	
  Its: 

  	
  Executive Vice President, Chief Financial

  
	
   

  	
   

  	
  Officer and Treasurer

  
	
   

  	
  Name: Bradford R. Rich

  
	
   

  	
   

  

 

4

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