Document:

Exhibit
4.6

    ROCKWELL
COLLINS

    RETIREMENT
SAVINGS PLAN

    

    ARTICLE
I:   DEFINITIONS

    

    1.010  Accounts
means a Participant’s Pre-tax Contribution Account, After-tax Contribution
Account, Rollover Account, Rockwell Collins Stock Fund ESOP Account, Company
Match Account, Catch-Up Contribution Account and Company Retirement Contribution
Account.

    

    1.020  Affiliated
Company means Rockwell Collins, Inc. and:

    

    
      	
              (a)

            	
              any
      corporation incorporated under the laws of one of the United States of
      America of which Rockwell Collins, Inc. owns, directly or indirectly,
      eighty percent (80%) or more of the combined voting power of all
      classes of stock or eighty percent (80%) or more of the total value
      of the shares of all classes of stock (all within the meaning of Code
      §1563);

            

    

    

    
      	
              (b)

            	
              any
      partnership or other business entity organized under such laws, of which
      Rockwell Collins, Inc. owns, directly or indirectly, eighty
      percent (80%) or more of the voting power or eighty percent (80%) or
      more of the total value (all within the meaning of Code §414(c));
      and

            

    

    

    
      	
              (c)

            	
              any
      other company deemed to be an Affiliated Company by the Rockwell Collins
      Board of Directors.

            

    

    

    1.029  After-tax
Contributions. means contributions made by a Participant on an after-tax
basis under Section 2.020 or 2.030.

    

    1.030  After-tax
Contribution Account means a Plan Account with respect to a Participant
which is comprised of Basic and Supplemental After-tax Contributions, as
adjusted for gains or losses related thereto.

    

    1.040  After-tax
Contribution Percentage Limit means the maximum contribution percentage
in each Plan Year for Highly Compensated Group Participants and is that
percentage amount which does not exceed the greater of:

    

    
      	
              (a)

            	
              the
      Average After-tax Contribution Percentage for the Non-Highly Compensated
      Group for the current year, multiplied by one and twenty-five
      hundredths (1.25); or

            

    

    

    
      	
              (b)

            	
              the
      lesser of

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    
      	
            	
              (1)

            	
              an
      amount which does not exceed the Average After-tax Contribution Percentage
      for the Non-Highly Compensated Group for the current year by more than two
      (2) percentage points, or

            

    

    

    
      	
            	
              (2)

            	
              the
      Average After-tax Contribution Percentage for the Non-Highly Compensated
      Group for the current year, multiplied by two
  (2).

            

    

    

    If a
Participant who is a member of the Highly Compensated Group is a participant in
any other plan established or maintained by an Affiliated Company pursuant to
which elective deferrals under a cash or deferred arrangement or matching
contributions, both as defined in Code §401(m)(4), or employee contributions,
are made, such other plan will be deemed to be a part of this Plan for the
purpose of determining the After-tax Contribution Percentage Limit with respect
to that Participant.

    

    1.050  Average
After-tax Contribution Percentage means the average for a particular Plan
Year of the percentages, calculated separately for the Highly Compensated Group
and for the Non-Highly Compensated Group with respect to each Participant in
each such Group, which are equal to the sum of A and B, divided by C, where

    

    
      	
               
      

            	
              A

            	
              =

            	
              the
      amount of the Participant’s Basic After-tax Contributions and Supplemental
      After-tax Contributions in the Plan
Year;

            

    

    

    
      	
               
      

            	
              B

            	
              =

            	
              the
      amount of the Company Matching Contributions made on behalf of the
      Participant in the Plan Year; and

            

    

    

    
      	
               
      

            	
              C

            	
              =

            	
              the
      Participant’s Compensation for the Plan
Year.

            

    

    

    1.060  Average
Pre-tax Contribution Percentage means the average for a particular Plan
Year of the percentages, calculated separately for the Highly Compensated Group
and for the Non-Highly Compensated Group with respect to each Participant in
each such Group, which are equal to the amount of each Participant’s Basic
Pre-tax Contributions and Supplemental Pre-tax Contributions in a Plan Year,
divided by the Participant’s Compensation for the Plan Year.

    

    1.070  Base
Compensation means a Participant’s compensation, not in excess of such
sum as established pursuant to Code §401(a)(17) for any calendar year,
including as such compensation: (a) lump sum merit awards; (b) any amount which
would be paid to the Participant absent elections under Sections 2.020(a)
and 2.030(a); and (c) any amount which would be paid to the Participant absent
an election to make elective employee contributions pursuant to a qualified cash
or deferred arrangement under a cafeteria plan meeting the requirements of Code
§125.  Base Compensation does not include amounts paid on a commission
basis,
overtime pay, extended workweek compensation, night work or other premium
pay, bonuses, lump sum payments of severance compensation, any form of
extra, contingent or supplementary compensation (including, but not limited to,
lump sum payments for unused vacation) or compensation on an hourly payroll
associated with membership in a collective bargaining unit with which retirement
benefits are the subject of good faith bargaining and for which participation is
contemplated and permitted under the Rockwell Collins Retirement Savings Plan
for Bargaining Unit Employees.

    

    
      
        
           

        

        
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    Notwithstanding
the foregoing, for the 2008 Plan Year, “Base Compensation” for purposes of
determining the Company Matching Contributions shall include any salary deferred
pursuant to the terms and conditions of the non-qualified Rockwell Collins
Deferred Compensation Plan.

    

    Effective
January 1, 2008, Pre-tax Contributions may be made only from Base Compensation
that constitutes “compensation” for purposes of Code §
415.  Compensation paid after termination of employment shall not be
treated as “Base Compensation” unless it is regular compensation for services
performed during employment, and is paid by the later of 2 1⁄2 months after
severance of employment or the end of the plan year in which such severance
occurred.

    

    1.080  Basic
After-tax Contribution means an amount contributed by a Participant to
the

    Plan
through payroll deductions pursuant to the Participant’s elections under
Sections 2.020(b).

    

    1.090  Basic
Pre-tax Contribution means an amount contributed by a Participant to the
Plan through payroll deductions  pursuant to the Participant’s
elections under Sections 2.020(a).

    

    1.100  Beneficiary
means the one or more persons or trusts entitled to a Participant’s Accounts,
pursuant to the provisions of Article VII, if the Participant should die prior
to payment to him of his entire Accounts.

    

    1.110  Board of
Directors means the Board of Directors of Rockwell Collins; provided,
however, that any action or determination under Sections 1.020, 1.140 and 1.230,
as well as under Article XI, may be taken by any officer of the Company who is
authorized to do so by the Board of Directors.

    

    1.115  Catch-up
Contributions means an amount
contributed by a Participant to the Plan through payroll deductions pursuant to
the Participant’s election under Section 2.045.

    

    1.116  Catch-up
Contribution Account means a Plan Account
with respect to a Participant which is comprised of his Catch-Up Contributions,
as adjusted for gains and losses related thereto.

    

    1.120  Code
means the Internal Revenue Code of 1986, as from time to time
amended.

    

    1.130  Collins
Spin-off means the spin-off transaction, dated June 29, 2001, pursuant to
which Rockwell International’s Avionics and Communications component businesses
became a separate, stand-alone company, Rockwell Collins, Inc., and Rockwell
International distributed to its then current shareowners shares of the common
stock of that new company.

    

    1.140  Company
means Rockwell Collins, Inc., a Delaware corporation, and any Affiliated Company
to which the Board of Directors has extended this Plan.

    

    
      
        
           

        

        
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    1.150  Company
Match Account means a Plan Account with respect to a Participant which is
comprised of his Company Matching Contributions, as adjusted for gains or losses
related thereto.

    

    1.160  Company
Matching Contributions means the contributions made to the Trust Fund by
the Company or an Affiliated Company pursuant to the provisions of Section
2.060.

    

    1.170  Company
Retirement Contribution Account means a Plan Account with respect to a
Participant which is comprised of his Company Retirement Contributions, as
adjusted for gains or losses related thereto.

    

    1.180  Company
Retirement Contributions means the contributions
made to the Trust Fund by the Company or by an Affiliated Company pursuant to
the provisions of Section 3.020(a).

    

    1.190  Compensation
means the compensation of a Participant, as is defined in Code
§414(s).

    

    1.200  Credited
Service means and refers to the period of a Participant’s employment with
the Company, an Affiliated Company and/or a predecessor to the Company which is
utilized at any time in determining the Retirement Points accrued by the
Participant for purposes of calculating the amount to be paid to the Plan as
Company Retirement Contributions at such time on behalf of the
Participant.  Credited Service will be determined on an elapsed time
basis and will be equal to the Participant’s Company service as of the date of
determination, using the Participant’s Employment Commencement Date with the
Company, an Affiliated Company or a predecessor thereto (or, in certain cases,
as determined by the Plan Administrator).

    

    1.201  Default
Investment Fund, effective October 1, 2006, is the Fidelity Freedom Fund
with a target retirement date that is closest to the date the Participant will
turn age 65.

    

    1.204  Disability
means a total and permanent physical or mental impairment for which the
Participant has been found entitled to disability benefits under Social Security
or the Company’s long-term disability plan.

    

    1.205  Divested
Business Employee means an individual who is no longer an Employee of the
Company, because he is a current or former employee of a component of the
Company which was sold, spun off or otherwise divested by the Company after the
Effective Date.

    

    1.210  EB
Committee means the Rockwell Collins Employee Benefit Plan
Committee.

    

    1.220  Effective
Date means June 30, 2001.

    

    1.230  Eligible
Employee means any Employee (including any officer) employed on a salary
or weekly payroll of an Affiliated Company, or on the salary or weekly payroll
of a division, plant, office or location of an Affiliated Company, to which the
benefits of the Plan have been extended by the Board of
Directors.  Eligible Employee does not include any director of the
Company who is not an Employee, any Employee who is compensated by special fees
or pursuant to a special contract or arrangement, or any Employee who is covered
by a collective bargaining agreement for which participation is contemplated in
the Rockwell Collins Retirement Savings Plan for Bargaining Unit
Employees.

    

    
      
        
           

        

        
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    Eligible
Employee does not include any person who is not treated by the Company as a
common-law employee.  If an individual who is not treated by the
Company or an Affiliated Company as an employee for federal tax withholding
purposes is later determined (by a court or by an agency of any government) to
have been a common law employee, such determination shall have no effect on the
individual’s non-entitlement to participate in the Plan.

    

    1.235  Eligible
Employment Date means the date on which a person attains the status of
being an Employee of the Company who is an Eligible Employee.

    

    1.240  Eligible
Retirement Compensation means a Participant’s compensation, not in excess
of such sum as may be established pursuant to Code §401(a)(17) for any
calendar year, which is utilized in determining the amount of Retirement
Contributions to be made to the Plan pursuant to the provisions of the
Retirement Contribution Sub-Plan.  Eligible Retirement Compensation
consists of the classifications of income which are set forth and delineated in
sub-Section (a) of this Section, but specifically does not include the
classifications of income set forth and delineated in sub-Section
(b).

    

    
      	
              (a)

            	
              Eligible
      Retirement Compensation includes the following classifications of
      income:

            

    

     

    
      	
            	
              (1) 

            	
              Base
      Compensation, as defined in Section
1.070;

            

    

     

    
      	
            	
              (2)

            	
              if
      not otherwise included in paragraph (1), incentive payments which the
      Participant is paid under the Company’s incentive pay plan (IPP) for
      periods after the Company’s 2006 fiscal
year;

            

    

     

    
      	
            	
              (3)

            	
              if
      not otherwise included in paragraph (1), incentive payments which the
      Participant is paid under the Company’s incentive compensation plan (ICP))
      for periods after the Company’s 2006 fiscal
  year;

            

    

     

    
      	
               
      

            	
              (4)

            	
              overtime
      pay;

            

    

    

    
      	
            	
              (5)

            	
              in
      the case of a Participant who is paid partly on a commission basis, his
      commissions for a particular pay
period;

            

    

    

    
      	
            	
              (6)

            	
              any
      non-periodic payments related to the performance of service which are
      classified by an Employer as “variable compensation”;
  and

            

    

    

    
      	
            	
              (7)

            	
              elective
      Employer contributions under a cafeteria plan described in Code section
      125.

            

    

    

    
      	
            	
              (8)

            	
              Any
      salary deferred pursuant to the terms and conditions of the non-qualified
      Rockwell Collins Deferred Compensation
Plan.

            

    

    

    
      
        
           

        

        
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              (b)

            	
              Eligible
      Retirement Compensation does not include the following classifications of
      income:

            

    

     

    
      	
            	
              (1)

            	
              the
      value of any awards of options to purchase the stock of an Employer,
      including the difference between the exercise price and the fair market
      value of any such Employer stock purchased by the exercise of any such
      awards;

            

    

     

    
      	
            	
              (2)

            	
              the
      amount of any cash and/or the value of any Employer stock awarded under
      any Long Term Incentive Plan (“LTIP”), if
  applicable;

            

    

     

    
      	
            	
              (3)

            	
              any
      payments unrelated to the performance of services which are classified by
      an Employer as a “special payment” (e.g., sign-on
      bonuses or incentives);

            

    

     

    
      	
            	
              (4)

            	
              any
      reimbursement for expenses; any relocation payments; or any tuition
      payments;

            

    

    

    
      	
            	
              (5)

            	
              any
      foreign service premiums, differentials or
  allowances;

            

    

    

    
      	
            	
              (6)

            	
              any
      patent awards; and

            

    

    

    
      	
            	
              (7)

            	
              any
      other classification of income not described in sub-Section
      (a).

            

    

    

    1.245  Eligible
Retirement Plan means:

    

    
      	
              (a)

            	
              an
      individual retirement account described in Code
  §408(a),

            

    

    

    
      	
              (b)

            	
              an
      individual retirement annuity described in Code
  §408(b),

            

    

    

    
      	
              (c)

            	
              an
      annuity plan described in Code
§403(a),

            

    

    

    
      	
              (d)

            	
              a
      qualified plan described in Code §401(a) which accepts an individual’s
      eligible rollover distributions, provided, however, that prior to January
      1, 2007, if the distribution includes After-tax Contributions, such plan
      must be a defined contribution
plan;

            

    

    

    
      	
              (e)

            	
              effective
      January 1, 2002, an annuity contract described in Code Section 403(b) or
      an eligible plan under Code Section 457(b) which is maintained by a State
      or a political subdivision of a State, which agrees to separately account
      for amounts transferred into such plan from this Plan;
  and

            

    

    

    
      	
              (f)

            	
              effective
      January 1, 2008, a Roth IRA, provided that prior to January 1, 2010, this
      subsection (f) applies only with respect to individuals who meet the
      income limits and filing status requirements under Code Section
      408A(c)(3)(B).

            

    

    

    Notwithstanding
the foregoing, however, (i) in the case of an eligible rollover distribution to
a Participant’s surviving spouse, only an individual retirement account or
individual retirement annuity described in (a) or (b) above will be deemed to be
an Eligible Retirement Plan, and (ii) in the case of a Beneficiary who is not
the Participant’s surviving spouse, and who is designated beneficiary (as
defined by Section 401(a)(9)(E)), only an individual retirement account or
individual retirement annuity described in Code Section 402(c)(8)(B)(i) that is
established treated as an inherited retirement account or inherited retirement
annuity within the meaning of Code Section 408(d)(3)(c) will be considered an
Eligible Retirement Plan.

    

    
      
        
           

        

        
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    1.250  Employee
means any person who is employed by the Company or by an Affiliated Company, and
will, to the extent permitted by Code §406, be deemed to include any United
States citizen regularly employed by a foreign subsidiary or affiliate of the
Company.

    

    1.260  Employment
Commencement Date means the date on which a person first becomes an
Employee of the Company or an Affiliated Company.

    

    1.270  Employment
Severance Date  means:

    

    
      	
              (a)

            	
              the
      date on which an Employee quits, retires, is discharged or
      dies,

            

    

    

    
      	
              (b)

            	
              in
      the case of an Employee who remains absent from work pursuant to a written
      Leave, the first anniversary of such Leave, except that an Employee who
      has a Leave which is in excess of one (1) year who thereafter returns to
      work with the Company for a period at least equal to the entire period of
      the Leave will not be considered as having an Employment Severance Date by
      reason of such absence.  See Section 13.060 for rules applicable
      to Employees who return from Qualified Military
  Service.

            

    

    

    
      	
              (c)

            	
              Notwithstanding
      the foregoing, effective July 1, 2001, solely for purposes of determining
      an Employee’s Vesting Service, if an Employee is reemployed within the
      earlier of (i) 12 months from the date he quits, retires, or is
      discharged, or (ii) in the case of an Employee who quits retires, or is
      discharged while absent from service pursuant to a written Leave, 12
      months from the date the Employee was first absent from service, the
      Employee will not be considered as having incurred an Employment Severance
      Date.

            

    

    

    1.280  ERISA
means the Employee Retirement Income Security Act of 1974, as it may be
amended from time to time.

    

    1.290  Fund(s)
means one or more of the Investment Funds (including the Rockwell Collins Stock
Fund).

    

    1.300  Hardship
means an immediate and heavy financial need of the Participant for which the
amount required is not reasonably available to the Participant from other
sources and which arises for one of the following reasons:

    

    
      	
              (a)

            	
              the
      purchase (excluding mortgage payments) or construction of a principal
      residence for the Participant;

            

    

    

    
      
        
           

        

        
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              (b)

            	
              payment
      to prevent eviction from, or foreclosure on the mortgage on, the
      Participant’s principal residence;

            

    

    

    
      	
              (c)

            	
              payment
      of certain expenses related to the repair of the Participant’s principal
      residence, if such expenses would qualify for the casualty tax
      deduction;

            

    

    

    
      	
              (d)

            	
              payment
      of tuition, related educational fees and room and board expenses for
      post-secondary education for the Participant, his spouse or one or more of
      his children or other dependents (as defined in Code §152) to be incurred
      during the twelve (12) month period immediately following the date of
      his request for distribution; or

            

    

    

    
      	
              (e)

            	
              payment
      of expenses not covered by insurance which either have been previously
      incurred by the Participant for, or are necessary in order for the
      Participant to obtain, medical care (as described in Code §213(d))
      for himself, his spouse or one or more of his dependents (as defined
      in Code §152);

            

    

    

    
      	
              (f)

            	
              payment
      of funeral expenses of a Participant’s spouse, parents, children or
      dependents; or

            

    

    

    
      	
              (g)

            	
              any
      other reason which is permitted under Code
      §401(k)(2)(B)(i)(IV).

            

    

    

    1.310  Highly
Compensated Group means those individuals
who are “highly compensated employees” within the meaning of Code
§414(q).  Effective January 1, 2006, the Highly Compensated Group is
determined without application of the top twenty percent (20%) election, as
described in Section 414(q)(3) of the Code.

    

    1.320  Investment
Fund means one of the investment vehicles which are made available to
Participants from time to time by the EB Committee, as such investment vehicles
are described in communications from such Committee or the Plan
Administrator.

    

    1.330  Layoff
means an involuntary severance of employment, other than a discharge for
cause.

    

    1.340  Leave
means a leave of absence which has been granted or approved by the
Company.

    

    1.350  Maternity
or Paternity Leave means any period of absence by reason of the pregnancy
of the Participant, the birth of a child of the Participant, the placement of a
child with the Participant in connection with the adoption of such child by the
Participant, or the caring for such child for a period beginning immediately
following such birth or placement; provided, however, that the Participant will
have complied with the Company’s request to furnish the Plan Administrator such
timely information as may be reasonably required to establish that the absence
is for such reason and the number of days for which there was such an
absence.

    

    1.360  Named
Fiduciary means the EB Committee, the Plan Administrator, the Retirement
Committee and the Trustee.

    

    
      
        
           

        

        
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    1.370  Non-Highly
Compensated Group means Employees who are
not in the Highly Compensated Group, as determined by the Plan
Administrator.

    

    1.380  Participant
means a person who has elected to participate in the Plan in accordance
with Article II, or who is a Participant in the Retirement Contribution Sub-Plan
under Article III, provided, however, that such term will include a person who
no longer has an effective election under Article II and has ceased to be
eligible for the Retirement Contribution Sub-Plan only so long as he retains an
Account under the Plan.

    

    1.390  Participant
Contributions means, as applicable, a
Participant’s:

    

    
      	
              (a)

            	
              Basic
      Pre-tax and Basic After-tax
Contributions;

            

    

    

    
      	
              (b) 

            	
              Supplemental
      Pre-tax and Supplemental After-tax
  Contributions;

            

    

    

    
      	
              (c) 

            	
              Catch-up
      Contributions; and

            

    

    

    
      	
              (d) 

            	
              Transfer
      and/or Rollover Contributions.

            

    

    

    1.400  Plan
means this Rockwell Collins Retirement Savings Plan, as from time to time
amended.

    

    1.410  Plan
Administrator means the person from time to time so designated by the EB
Committee to carry out the administrative functions of this Plan.

    

    1.420  Plan
Year means the period commencing on the Effective Date of the Plan and
ending on December 31, 2001 and each full calendar year thereafter.

    

    1.429  Pre-tax
Contributions. means contributions made by a Participant on a pre-tax
basis under Section 2.020 or 2.030.

    

    1.430  Pre-tax
Contribution Account means a Plan Account with respect to a Participant
which is comprised of his Basic Pre-tax Contributions, Supplemental Pre-tax
Contributions and Catch-up Contributions, all as adjusted for gains or
losses.

    

    1.440  Pre-tax
Contribution Percentage Limit means the maximum contribution percentage
in each Plan Year for Highly Compensated Group Participants and, for any Plan
Year, may be equal to either (a) or (b) below:

    

    
      	
              (a)

            	
              the
      Average Pre-tax Contribution Percentage for the Non-Highly Compensated
      Group for the current year, multiplied by one and twenty-five
      hundredths (1.25); or

            

    

    

    
      	
              (b)

            	
              the
      lesser of

            

    

     

    
      
        
        

      

      
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              (1)

            	
              an
      amount which does not exceed the Average Pre-tax Contribution Percentage
      for the Non-Highly Compensated Group for the current year by more than two
      (2) percentage points, or

            

    

    

    
      	
            	
              (2)

            	
              the
      Average Pre-tax Contribution Percentage for the Non-Highly Compensated
      Group for the current year, multiplied by two
  (2).

            

    

    

    If a
Participant who is a member of the Highly Compensated Group is a participant in
any other plan established or maintained by an Affiliated Company pursuant to
which elective deferrals under a cash or deferred arrangement or matching
contributions, both as defined in Code §401(m)(4), or employee
contributions, are made, such other plan will be deemed to be a part of this
Plan for the purpose of determining the Pre-tax Contribution Percentage Limit
with respect to that Participant.

    

    This
Section 1.440 is effective January 1, 2006.

    

    1.448  Qualified
Military Service. means an
absence from active employment with the Company or an Affiliated Company in
order to perform duty on a voluntary or involuntary basis in a uniformed
service, as that term is defined for purposes of USERRA, provided that, except
as otherwise required by law (a) the Employee (or an appropriate officer of the
uniformed services) has given advance written or verbal notice of such service
to the Company; (b) the cumulative length of the absence and of all previous
absences from a position of employment with the Affiliated Companies by reason
of service in the uniformed services does not exceed five years; and (c) the
Employee returns to employment or submits an application for reemployment with
the Company or an Affiliated Company within the time provided under
USERRA.  Such Qualified Military Service shall be determined as
provided under USERRA.

    

    1.450  Reemployment
Date means the date on which a person first becomes an Employee of the
Company or an Affiliated Company following an Employment Severance
Date.

    

    1.460  Retirement
Committee means the committee,
namely the Company’s Retirement Committee, established by the Plan Administrator
to carry out the responsibilities set forth in Article X.

    

    1.465  Retirement
Point refers
to the measure set forth and calculated in Section 3.020(b) upon which
Retirement Contributions are made to the Plan on behalf of each Participant in
the Retirement Contribution Sub-Plan.

    

    1.470  Rockwell
Collins means Rockwell Collins, Inc. a Delaware corporation, including
any Affiliated Company.

    

    1.480  Rockwell
Collins Stock Fund means the Fund described in Section 8.020(b), which
was established by the Trustee to receive and hold Company Matching
Contributions made in the form of Rockwell Collins common stock, as well as to
purchase and hold such Rockwell Collins common stock as an Investment
Fund.

    

    
      
        
           

        

        
          - 10
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    1.490  [Reserved]

    

    1.500  [Reserved]

    

    1.510  [Reserved]

    

    1.520  Rollover
Account means a Plan Account described in Section 2.050 which has as
its purpose the holding of amounts which are received by the Plan on a
Participant’s behalf as a Rollover Contribution or a Transfer Contribution, as
adjusted for gains and losses related thereto.

    

    1.530  Rollover
Contributions mean the amounts described in Section 2.050 which are
transferred to a Participant’s Rollover Account pursuant to the terms of
subsection (c) of that Section.

    

    1.540  Sub-Plan
means and refers, as applicable, to the 401(k) program described in Article II
and to the Retirement Contribution program described in Article
III.

    

    1.550  [Reserved]

    

    1.560  Supplemental
After-tax Contributions means the amounts contributed by a Participant to
the Plan through payroll deductions pursuant to the Participant’s election under
Section 2.030(b).

    

    1.570  Supplemental
Pre-tax Contributions means the amount contributed by a Participant to
the Plan through payroll deductions pursuant to the Participant’s election under
Section 2.030(a).

    

    1.580  Tender
Offer means any tender offer for, or request or invitation for tenders
of, common stock subject to §14(d)(1) of the Securities Exchange Act of 1934, as
amended, or any regulation thereunder, except for any such tender offer or
request or invitation for tenders made by the Company.

    

    1.590  Transfer
Contributions mean the amounts which are transferred to a Participant’s
Account pursuant to the terms of Section 2.050(a) and (b) of this
Plan.

    

    1.600  Trust
Agreement means the trust agreement entered into pursuant to Article VIII
of this Plan.

    

    1.610  Trust
Fund means the fund, including the earnings thereon, held by the Trustee
for all contributions made under this Plan by Participants and the
Company.

    

    1.620  Trustee
means the trustee or trustees of the trust described in Article VIII of this
Plan.

    

    1.625  USERRA
means the Uniformed Services Employment and Reemployment Rights Act, 38 U.S.C.
§§ 4301, et
seq., as amended from time to time.

    

    
      
        
           

        

        
          - 11
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    1.630  Valuation
Date means any New York Stock Exchange trading day.

    

    1.640  Vesting
Service means the period commencing with an Employee’s Employment
Commencement Date and ending with his next following Employment Severance Date
and the period from an Employee’s Reemployment Date to his subsequent Employment
Severance Date. If a Participant was employed by Rockwell International
Corporation immediately prior to consummation of the Collins Spin-off and, as a
result of the said Collins Spin-off, became an Employee of the Company as of the
distribution date for the Spin-off, the Participant’s service with Rockwell
International Corporation will be considered in determining the amount of the
Participant’s Vesting Service hereunder.

     

    
      
        
           

        

        
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    ARTICLE
II:   401(k) SUB-PLAN

    

    2.010  Participation.

    

    
      	
              (a)

            	
              An
      Eligible Employee hired prior to October 1, 2006 will be permitted to
      elect to become a Participant in the Plan as soon as is practicable
      following his commencement of service with the Company.  To the
      extent administratively feasible, an Eligible Employee’s election to
      contribute to the Plan will become effective on the first payroll payment
      date following his commencement of service as an Eligible Employee (or if
      later, the first payroll date following receipt of his or her election
      under Section 2.020), and will remain in effect, unless he elects
      otherwise, so long as he continues to be an Eligible
    Employee.

            

    

    

    
      	
              (b)

            	
              An
      Eligible Employee hired on or after October 1, 2006 will be deemed to have
      elected to become a Participant in this 401(k) Sub-Plan, and will be
      automatically enrolled in the Plan at a 2% Basic Pre-tax Contribution
      rate, effective 45 to 60 days after his Eligible Employment Date (as
      administratively practical), unless he has made a positive election not to
      participate, or to participate at a different level, as provided under
      Section 2.020, at that time. The Participant will be provided a notice of
      his automatic enrollment at least 30 days prior to the date his automatic
      enrollment will take effect.  Such automatic enrollment and
      deemed election will continue in effect unless and until the Participant
      makes a positive election not to participate, or to participate at a
      different level or type of contribution, as permitted under Section
      2.020.   Once made, contributions to the Plan under the
      provisions of this Section 2.010 can not be withdrawn unless the
      participant meets the requirements set forth in Article
      VI.  Contributions under such deemed election will be made to
      the Plan’s Default Investment Fund, unless otherwise directed by the
      Participant.

            

    

    

    2.020  Basic Contributions —
General.   A Participant may take either or both of the
actions described in subsections (a) and (b) below:

    

    
      	
              (a)

            	
              elect
      to defer receipt of an amount equal to 1% through 8% (or 1% through 6%, in
      the case of a Participant employed in a business, division or location
      identified in Appendix E) of his regular Base Compensation (such deferral
      to be elected in whole percentages) and to instead have that amount paid
      to the Plan as a Basic Pre-tax Contribution to his Pre-tax Contribution
      Account; or

            

    

    

    
      	
              (b)

            	
              authorize
      deducting (such deduction to be authorized in whole percentages) from his
      regular Base Compensation 1% through 8% (or 1% through 6%, in the case of
      a Participant employed in a business, division or location identified in
      Appendix E) and then have the amount of such deduction (as adjusted for
      all applicable taxes due on that amount) paid to the Plan as a Basic
      After-tax Contribution to his After-tax Contribution
    Account.

            

    

    

    The
percentages elected to be deferred or deducted and then made as Basic Pre-tax
and Basic After-tax Contributions will together not exceed 8% (or, as
applicable, 6%) of the Participant’s Base Compensation.

    

    
      
        
           

        

        
          - 13
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    Notwithstanding
the foregoing, if the Pre-tax Contributions of a Participant who had elected to
contribute a percentage of his or her Base Compensation for the 2008 Plan Year
would be limited by the removal of salary amounts deferred under the Rockwell
Collins 2005 Deferred Compensation Plan from “Base Compensation” for purposes of
Pre-tax Contributions in 2008, the Participant will be deemed to have elected to
contribute a specific dollar amount from his Base Compensation equal to the
amount obtained by multiplying the Participant’s Base Compensation (determined
using the definition in effect under Section 1.070 prior to 2008) by the
percentage elected by the Participant for 2008 (as modified from time to time
during the year, if applicable), but not to exceed $15,500.  Any such
contribution in excess of 8% (or as applicable, 6%) of Base Compensation shall
be treated as a Supplemental Pre-tax Contribution.

    

    2.030  Supplemental Contributions —
General.  A Participant who has made the maximum elections
and/or authorizations described in Section 2.020 will also be permitted to take
either or both of the actions described in subsections (a) and (b)
below:

    

    
      	
              (a)

            	
              (1)

            	
              if
      he is a non-Highly Compensated Employee, elect to defer receipt of an
      amount equal to 9% through 50% (or 7% through 50%, in the case of a
      Participant who is employed in a business, division or location identified
      in Appendix E) of his regular Base Compensation (such deferral to be
      elected in whole percentages), and to instead have that amount paid to the
      Plan as a Supplemental Pre-tax Contribution to his Pre-tax Contribution
      Account;

            

    

    

    
      	
            	
              (2)

            	
              if
      he is a Highly Compensated Employee, elect to defer receipt of an amount
      equal to 9% through 20% (or 7% through 20%, in the case of a Participant
      who is employed in a business, division or location identified in Appendix
      E) of his regular Base Compensation (such deferral to be elected in whole
      percentages), and to instead have that amount paid to the Plan as a
      Supplemental Pre-tax Contribution to his Pre-tax Contribution Account;
      or

            

    

    

    
      	
              (b)

            	
              authorize
      having deducted (such deduction to be authorized in whole percentages)
      from his regular Base Compensation 9% through 50% (or 7% through 50%, in
      the case of a Participant who is employed in a business, division or
      location identified in Appendix E) and then have the amount of such
      deduction (as adjusted for all applicable taxes due on that amount) paid
      to the Plan as a Supplemental After-tax Contribution to his After-tax
      Contribution Account;

            

    

    

    The
percentages elected to be deferred or deducted and then made as Supplemental
Pre-tax and After-tax Contributions, when combined with his Basic Pre-tax and
After-tax Contributions, will not exceed 50% of the Participant’s Base
Compensation.

    

    2.040  Changes Between Pre-tax and After-tax
Contributions.   A Participant will be permitted to elect
to increase or decrease at any time (and as often as he wishes) the rate of his
Pre-tax and After-tax Contributions.  Any such increase or decrease of
the rate of the Participant’s Pre-tax and After-tax Contributions will be
effective as soon as is reasonably possible after receipt by the Plan
Administrator of the Participant’s election.

    

    
      
        
           

        

        
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    2.045  Catch-up
Contributions.   In addition to the Basic Pre-tax
Contributions and the Supplemental Pre-tax Contributions described,
respectively, in Sections 2.020 and 2.030, subject to Section 2.085, and
notwithstanding any of the nondiscrimination rules (as described in Code
§401(a)(4)) or limitations on Participant Contributions as are otherwise in
effect under this Plan, including, but not limited to any such rules or
limitations as are set forth in Sections 2.080 and 12.010, any Participants in
the Plan who on or prior to the last day of a Plan Year will have attained age
50 will be permitted to elect to have an additional amount contributed as a
pre-tax Catch-up Contribution to the Plan on his behalf during that Plan Year,
so long as the total of any such Catch-up Contributions during the Plan Year are
not in excess of the applicable dollar amount set forth in the said Section
2.085.

    

    2.050  Transfers and Rollover
Contributions.  Transfers and rollovers to this Plan of a
Participant’s interest in another individual account plan will be permitted as
set forth below:

    

    
      	
              (a)

            	
              A
      Participant who is presently an Eligible Employee but who formerly though
      an Employee was not an Eligible Employee will have his account balances in
      any other individual account plan of the Company or an Affiliated Company
      automatically transferred to this Plan.  Such transferred
      account balances (which may be in cash, common stock, participant
      loans or any combination thereof) will constitute Transfer
      Contributions.

            

    

    

    
      	
              (b)

            	
              The
      Company or the EB Committee may agree from time to time with another
      company or with the named fiduciary of a defined contribution plan
      sponsored by such company for the other company or named fiduciary to
      cause the account balances of individuals who were participants in such
      defined contribution plan to be transferred to this Plan in conjunction
      with the Company’s acquisition of a part of all of such other company (the
      Collins Spin-off being specifically included as such a transaction), such
      transfer to be consistent with and subject to the terms of any such
      agreement between the Company or the EB Committee and such the other
      company or named fiduciary.

            

    

    

    
      	
              (c)

            	
              Any
      portion of the Transfer Contributions under paragraph (a) or (b) above
      that are attributable to contributions made by the Participant on a
      pre-tax basis shall be subject to this Plan’s restrictions on distribution
      of Pre-tax Contributions except as provided in the next sentence with
      respect to protected benefits, rights and features.  Any
      benefit, right, or feature relating to a Transfer Contribution that is
      subject to the protections of Code §411(d)(6) and the regulations issued
      thereunder shall be preserved.  Any amendment to this Plan
      needed to preserve any benefit, right or feature relating to such Transfer
      Contributions shall be set forth in an appendix to this Plan, and such
      amendments shall supercede any provision in this Plan to the contrary to
      the extent required by law with respect to the affected Transfer
      Contribution.

            

    

    

    
      	
              (d)

            	
              A
      Participant who is an Eligible Employee may elect (by providing the Plan
      Administrator with notice thereof) to have the entire amount credited to
      his account in a qualified individual account plan of a former employer
      transferred from such plan to this Plan as a Rollover Contribution,
      subject to the following:

            

    

    

    
      
        
           

        

        
          - 15
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              (1)

            	
              Such
      Rollover Contributions are eligible for receipt hereunder only if they are
      in the form of cash and are derived entirely from employee contributions
      or vested employer contributions to a retirement plan described in and
      subject to Code §401(a), a tax-sheltered annuity plan described in and
      subject to Code §403(b) or a governmental retirement plan described in and
      subject to Code §457.

            

    

    

    
      	
            	
              (2)

            	
              No
      portion of such Rollover Contributions may be derived from a transfer from
      a qualified plan which at any time had permitted benefit payments in the
      form of a life annuity.

            

    

    

    Any
portion of a Participant’s Rollover Account which is attributable to a Transfer
Contribution under subsections (a) or (b), or to a Rollover Contribution under
subsection (d), will be deemed to be Participant Contributions hereunder and
subject to the investment transfer provisions of Section 4.020, except that any
portion of such a Rollover Account which consists of Transfer Contributions
under subsection (a) of Rockwell Collins common stock which were attributable to
employer matching contributions made under another individual account plan of
the Company or an Affiliated Company will be held in the Rockwell Collins Stock
Fund and will be subject to the same limitations and provisions of Section 4.040
as govern transfers of interests attributable to Company Matching contributions
out of the said Rockwell Collins Stock Fund.

    

    2.060  Matching Contribution Formula –
General.   The Company will contribute to the Plan on
behalf of each Participant out of its current or accumulated profits Company
Matching Contributions equal to 75% (50%, in the case of a Participant who is
employed in a business, division or location identified in Appendix E) of such
Participant’s Basic Pre-tax Contributions and Basic After-tax Contributions made
pursuant to Section 2.020.  Such Company Matching Contributions will
be made in the form and subject to the limitations set forth below.

    

    Notwithstanding
the foregoing (or the provisions of Section 2.070(b)), for the 2008 Plan Year,
the Company’s Matching Contributions will equal 75% (50% in the case of a
Participant who is employed in a business, division or location identified in
Appendix E) of the Participant’s aggregate Pre-tax Contributions and After-tax
Contributions that are not in excess of eight percent (8%) of the Participant’s
Base Compensation, as defined in Section 1.070 for purposes of such Matching
Contributions.

    

    2.070  Rules
Concerning Matching Contributions.

    

    
      	
              (a)

            	
              Prior
      to October 1, 2006, Company Matching Contributions will not be made by the
      Company on behalf of a Participant until the Participant has completed six
      (6) months of employment with the Company or an Affiliated
      Company.  Effective October 1, 2006, however, the above
      six-month requirement is eliminated and such Company Matching
      Contributions will be made as soon as is practicable following an Eligible
      Employee becoming a Participant in the 401(k)
  Sub-Plan.

            

    

    

    
      
        
           

        

        
          - 16
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              (b)

            	
              No
      Company Matching Contributions will be made with respect to a
      Participant’s Supplemental Pre-tax Contributions or Catch-up
      Contributions, or with respect to any Supplemental After-tax Contributions
      or Rollover Contributions or Transfer Contributions made by the
      Participant.

            

    

    

    
      	
              (c)

            	
              Company
      Matching Contributions will be made in the form of Rockwell Collins common
      stock, but may be made, in the discretion of the Board of Directors,
      in cash or in any combination of cash and Rockwell Collins common
      stock.  Rockwell Collins common stock which is contributed will
      be valued at the New York Stock Exchange closing price on the Valuation
      Date immediately preceding the date on which the contribution
      is made.

            

    

    

    
      	
              (d)

            	
              Company
      Matching Contributions, whether they are made in the form of Rockwell
      Collins common stock or cash, will be directed to Rockwell Collins Stock
      Fund when they are contributed and, unless transferred to an Investment
      Fund pursuant to Section 4.040, will remain in the Rockwell Collins Stock
      Fund, along with any dividends or other earnings on such common stock or
      cash.

            

    

    

    2.080  Limitations
on Employee Pre-tax Contributions.

    

    
      	
              (a)

            	
              The
      aggregate amount in any calendar year of all of a
      Participant’s:

            

    

    

    
      	
            	
              (1)

            	
              Basic
      and Supplemental Pre-tax Contributions to this
  Plan;

            

    

    

    
      	
            	
              (2)

            	
              elective
      deferrals under any other cash or deferred arrangement (as defined in Code
      §402(g)); and

            

    

    

    
      	
            	
              (3)

            	
              elective
      employer contributions to any simplified employee pension (as defined in
      and pursuant to, respectively, Code §§408(k)(1) and
  (6))

            

    

    

    
      	
               
      

            	
              may
      not exceed such sum as may be
      established under Code §402(g)(5) for such
year.

            

    

    

    
      	
              (b)

            	
              Prior
      to the beginning of, and periodically during, each Plan Year, the Plan
      Administrator will cause a test to be conducted of Pre-tax Contribution
      elections under Sections 2.020(a) and 2.030(a), in order to
      determine whether the Average Pre-tax Contribution Percentage for the
      Highly Compensated Group exceeds the Pre-tax Contribution Percentage
      Limit. If it is determined that the Pre-tax Contributions made for any
      Plan Year by the Highly Compensated Group would (if not reduced) cause the
      Average Pre-tax Contribution Percentage of that Group to exceed the
      Pre-tax Contribution Percentage Limit, the Plan Administrator will first
      reduce any Supplemental Pre-tax Contributions and then the Basic Pre-tax
      Contributions elected by Participants in the Highly Compensated Group, so
      that the Pre-tax Contribution Percentage Limit will not be exceeded for
      the Plan Year.  In the event that at the end of the Plan Year,
      the Pre-tax Contribution Percentage is nevertheless exceeded, the Pre-tax
      Contribution Accounts of the Highly Compensated Group shall be reduced as
      provided herein:

            

    

    

    
      
        
           

        

        
          - 17
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                (1)

              	
                Such
      reduction will be made by first reducing the Pre-tax Contributions of
      Highly Compensated Group Participants who have the greatest dollar amount
      of Pre-tax Contributions (but not below the Highly Compensated Group
      Participants with the next highest dollar amount of Pre-tax
      Contributions), and then, if necessary, reducing the Pre-tax Contributions
      of the Highly Compensated Group Participants with the next highest dollar
      amount of Pre-tax Contributions (including the Pre-tax Contributions of
      the Highly Compensated Group Participants whose Pre-tax Contributions have
      already been reduced by the Plan Administrator), and continuing in
      descending order until the Average Pre-tax Contribution Percentage for the
      Highly Compensated Group satisfies the Pre-tax Contribution
      Limit.

              

      

    

    

    
      
        	
              	
                (2)

              	
                Unless
      re-characterized as provided in subparagraph (d), such excess Pre-tax
      Contributions will be distributed (along with the earnings attributable to
      such excess Pre-tax Contributions as determined in accordance with Treas.
      Reg. § 1.401(k)-2(b)(2)(iv)) to the affected Participants who are Highly
      Compensated Group Participants as soon as practicable after the end of
      such Plan Year and in all events prior the end of the next following Plan
      Year.  Any Matching Contributions attributable to Basic Pre-tax
      Contributions distributed hereunder (or re-characterized as Supplemental
      After-tax Contributions under paragraph (d)) shall be
      forfeited.

              

      

    

    

    
      	
              (c)

            	
              Reductions
      in Basic or Supplemental Pre-tax Contributions pursuant to
      subsection (b) of this Section will continue for the remainder of the
      Plan Year, unless the Plan Administrator determines that changed
      circumstances permit a revision of such Pre-tax Contributions, in which
      case the Plan Administrator will determine the amount by which such
      Pre-tax Contributions may be revised for the balance of the Plan
      Year.

            

    

    

    
      	
              (d)

            	
              The
      amount representing the additional amount of Base Compensation which would
      have been contributed as Supplemental Pre-tax or Basic Pre-tax
      Contributions on behalf of the Participant if not for the limitations
      specified under Code §402(g)(5) will be contributed by the Participant to
      the Plan, as appropriate, as Supplemental After-tax or Basic After-tax
      Contributions.  In addition, to the extent permitted by
      regulation, the Plan Administrator may during or following a Plan Year
      cause Supplemental or Basic Pre-tax Contributions made on behalf of Highly
      Compensated Participants to be re-characterized (on a uniform and
      non-discriminatory basis) as Supplemental or Basic After-tax Contributions
      to the extent necessary to prevent the Average Pre-tax Contribution
      Percentage for that Plan Year for those Participants from exceeding the
      Pre-tax Contribution Percentage
Limit.

            

    

    

    2.085  Limits for Catch-up
Contributions.  Notwithstanding the limitations set forth in
the preceding Section or any other provision of this Plan, the aggregate amount
of Catch-up Contributions for a given Plan Year of any Participant who, as of
the end of a Plan Year, is at least age fifty (50) and who intends to have Basic
and Supplemental Pre-tax Contributions made to the Plan during the Plan Year
which could be in excess of the limit set forth in the said Section, will be
permitted to elect to have Catch-up Contributions made on his behalf to the Plan
up to the maximum amount permitted for the Plan Year under Code §
414(v).

    

    
      
        
           

        

        
          - 18
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    To the
extent that any such Catch-up Contribution is in excess of the limits of this
Section and, if not otherwise limited pursuant to any other provisions of this
Plan which are applicable to Participant Contributions or Company Matching
Contributions, such excess will nevertheless be contributed to the Plan as an
After-tax Contribution of such Participant.

    

    2.090  Limitations
on After-Tax Contributions and Company Matching Contributions.

    

    
      	
              (a)

            	
              Prior
      to the beginning of, and periodically during, each Plan Year, the Plan
      Administrator will cause a test to be conducted of After-tax Contribution
      elections under Sections 2.020(b) and 2.030(b), in order to
      determine whether the Average After-tax Contribution Percentage for the
      Highly Compensated Group exceeds the After-tax Contribution Percentage
      Limit. If it is determined that the after-tax and matching contributions
      made for any Plan Year by or on behalf of the Highly Compensated Group
      would (if not reduced) cause the Average After-tax Contribution Percentage
      of that Group to exceed the After-tax Contribution Percentage Limit, the
      Plan Administrator will first reduce any Supplemental After-tax
      Contributions and then the Basic After-tax Contributions elected by
      Participants in the Highly Compensated Group, so that the After-tax
      Contribution Percentage Limit will not be exceeded for the Plan
      Year.  In the event that at the end of the Plan Year, the
      After-tax Contribution Percentage is nevertheless exceeded, the After-tax
      Contributions of the Highly Compensated Group shall be reduced as provided
      herein:

            

    

    

    
      
        	
              	
                (1)

              	
                Such
      reduction will be made by first reducing the After-tax Contribution
      Accounts of Highly Compensated Group Participants who have the greatest
      dollar amount of after-tax and matching contributions (but not below the
      Highly Compensated Group Participants with the next highest dollar amount
      of After-tax Contributions), and then, if necessary, reducing the
      After-tax Contributions of the Highly Compensated Group Participants with
      the next highest dollar amount of After-tax Contributions (including the
      After-tax Contributions of the Highly Compensated Group Participants whose
      After-tax Contributions have already been reduced by the Plan
      Administrator), and continuing in descending order until the Average
      After-tax Contribution Percentage for the Highly Compensated Group
      satisfies the After-tax Contribution
Limit.

              

      

    

    

    
      
        	
              	
                (2)

              	
                Such
      excess After-tax Contributions will be distributed (along with the
      earnings attributable to such excess After-tax Contributions) to the
      affected Participants who are Highly Compensated Group Participants as
      soon as practicable after the end of such Plan Year and in all events
      prior the end of the next following Plan Year.  Any Matching
      Contributions attributable to Basic After-tax Contributions distributed
      hereunder shall be forfeited.

              

      

    

    

    
      	
              (b)

            	
              Reductions
      in Basic or Supplemental After-tax Contributions pursuant to
      subsection (a) of this Section will continue for the remainder of the
      Plan Year, unless the Plan Administrator determines that changed
      circumstances permit a revision of such contributions, in which case the
      Plan Administrator will determine the amount by which such contributions
      may be revised for the balance of the Plan
Year.

            

    

    

    
      
        
           

        

        
          - 19
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              (c)

            	
              If
      it is determined as a result of tests of contribution elections pursuant
      to subsection (a) that there will be ‘excess aggregate contributions’ (as
      defined in and determined pursuant to Code §401(m)(6)) in any Plan Year,
      such excess aggregate contributions and all income allocable thereto will
      be distributed, or, if forfeitable, forfeited, in the manner and within
      the time required by the said
§401(m)(6).

            

    

    

    
      
        
           

        

        
          - 20
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    ARTICLE
III: RETIREMENT CONTRIBUTION SUB-PLAN

    

    Effective
as of October 1, 2006, in addition to the Code §401(k) program described in
Article II, Eligible Employees will be Participants in a Sub-Plan known as the
“Retirement Contribution Sub-Plan,” the terms of which will be as are set forth
in this Article III.

    

    
      3.010  Participation.

    

    

    
      	
              (a)

            	
              Each
      Employee who is an Eligible Employee on October 1, 2006 will automatically
      become a Participant in this Retirement Contribution Sub-Plan on that
      date; provided, however, that Employees who are otherwise Eligible
      Employees but who are employed in a business, division or location
      identified in Appendix E will not be eligible to become Participants in
      this Sub-Plan prior to October 1,
2007.

            

    

    

    
      	
              (b)

            	
              Any
      Eligible Employee whose Eligible Employment Date is subsequent to October
      1, 2006 will become a Participant in this Retirement Contribution Sub-Plan
      on his Eligible Employment Date, except, however, that Employees who are
      otherwise Eligible Employees but who are employed in a business, division
      or location identified in Appendix E will be not eligible to become
      Participants in this Sub-Plan prior to October 1,
  2007.

            

    

    

    3.020  Retirement
Contributions.  The Company will contribute to this Retirement
Contribution Sub-Plan, out of its current or accumulated profits and on behalf
of each Participant in the Sub-Plan, Company Retirement Contributions equal to a
percentage of such Participant’s Eligible Retirement Compensation for such pay
period.  The percentage applicable to each such Participant for any
pay period will be calculated and determined pursuant to the method set forth in
sub-Section (a) and the Eligible Retirement Compensation to be considered in
such calculation will be equal to such amounts as are determined pursuant to the
provisions of sub-Section (b).  The form of such Retirement
Contributions and the method of their initial and ongoing investment hereunder
are set forth in sub-Section (c).

    

    
      
        
          
            	
                    (a)

                  	
                    Retirement Points

                  	 
      	
                    Contribution Percentage

                  	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	
                     0 to 34

                  	 
      	
                    0.5%

                  	 
      
	 
      	
                    35 to 44

                  	 
      	
                    1.0%

                  	 
      
	 
      	
                    45 to 54

                  	 
      	
                    2.0%

                  	 
      
	 
      	
                    55 to 64

                  	 
      	
                    3.5%

                  	 
      
	 
      	
                    65 to 74

                  	 
      	
                    5.0%

                  	 
      
	 
      	
                    75 and above

                  	 
      	
                    6.0%

                  	 
      

          

        

      

    

     

    
      
        
           

        

        
          - 21
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    The
Retirement Points referred to with respect to each Participant will be
calculated on a monthly basis and will be equal to the “rounded down” whole
number obtained by adding the Participant’s age and Credited Service as of the
end of the month following the month in which such determination is
made.  For this purpose, age will calculated by taking the current
month and year, subtracting the Participant’s birth month and year (days being
disregarded) and adding one month.  Credited Service will be
determined on an elapsed time basis and will be equal to the Participant’s
Credited Service as of the date of determination, using the later of the
Participant’s Employment Commencement Date with the Company, an Affiliated
Company or (in certain cases and as determined by the Plan Administrator) a
predecessor employer or October 1, 2006 plus Credited Service, as determined
under the applicable sub-plan provisions of the Rockwell Collins Pension Plan,
earned through September 30, 2006 and, effective October 1, 2006, adjusted by
adding one month to such span of Credited Service.  An employee who is
active on payroll at least one day in the calendar month shall be treated as
having earned 1/12 of a year of Credited Service.

    

    Notwithstanding the foregoing, for a
Participant employed with Rockwell Collins Simulation and Training Solutions
(“STS”), Credited Service shall be determined on an elapsed time basis beginning
on the later of October 1, 2007 or the Participant’s Employment Commencement
Date with STS.  In the case of a Participant who had Credited Service
under this Section with an Affiliated Company other than STS, and subsequently
transfers to STS, his Credited Service will equal (a) the Credited Service
earned under this Section for periods prior to such transfer, plus (b) the
Credited Service earned with STS after the later of October 1, 2007 or the date
of such transfer.

    

    In
addition to the rules outlined above;

    

    
      
        	
              	
                (1)

              	
                a
      Participant who is on a medical Leave will continue to earn Credited
      Service for a period of up to one year, beginning with a the first day of
      his leave (whether paid or
unpaid

              

      

    

    

    
      	
            	
              (2)

            	
              a
      Participant who enters Qualified Military Service and has reemployment
      rights under USERRA will earn Credited Service for the entire period of
      his military service, if he returns to employment with the Company after
      the conclusion of such service within the time provided by law;
      and

            

    

    

    
      	
            	
              (3)

            	
              a
      Participant who is laid off by the Company and later returns to employment
      with the Company will earn up to one year of Credited Service for the
      period of his layoff, beginning with his layoff
  date.

            

    

    

    
      	
              (b)

            	
              The
      compensation against which the above percentages will be considered for
      each pay period in calculating the Company Retirement Contribution will be
      equal to the Participant’s Eligible Retirement Compensation, as defined in
      Section 1.240 of this Plan, for such period, with such Eligible Retirement
      Compensation specifically including any incentive payments to which the
      Participant may be entitled under the Company’s incentive pay plan (IPP)
      or its incentive compensation plan (ICP) which are payable for periods
      after the Company’s 2006 fiscal
year.

            

    

    

    
      
        
           

        

        
          - 22
-

          
            

          

        

        
           

        

      

    

    

    
      	
              (c)

            	
              (1)

            	
              A
      Participant’s Company Retirement Contributions each pay period will be
      made in cash and will be invested in the same Investment Funds and in the
      same relative percentages as are in effect for each individual
      Participant’s Pre-tax and After-tax Contributions under the 401(k)
      Sub-Plan at that time and will be subject to the same investment change
      provisions as are set forth in that Sub-Plan.  In the case of
      any Participant in this Sub-Plan who is not a Participant in the 401(k)
      Sub-Plan, Retirement Contributions will be invested in the appropriate
      Freedom Fund which is applicable to his age (e.g., such a Participant who
      will be age 65 in calendar year 2025 will have his Retirement
      Contributions directed to the 2025 Freedom Fund), until such time as he
      takes action to elect otherwise.

            

    

    

    
      	
            	
              (2)

            	
              Following such amounts being
      contributed to the Sub-Plan and such assets being included in the Plan’s
      Trust Fund, the provisions of Article IV concerning the transfer of assets
      among the Plan’s Investment Funds will be applicable to such Retirement
      Contributions.

            

    

     

    
      
        
           

        

        
          - 23
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    ARTICLE
IV:   PLAN INVESTMENTS

    

    4.010  Investment
Elections.  In addition to the elections and authorizations set
forth in Article II, a Participant will be permitted to elect in which
Investment Funds his Participant Contributions will be
invested.  The Investment Funds into which the said Contributions may
be invested are determined by the EB Committee from time to time, and are
described in communications from such Committee or the Plan
Administrator.

    

    
      	
              (a)

            	
              Such
      investments will be elected by the Participant among the Investment
      Funds in one percent (1%) increments, with the total of the elected
      percentage increments equaling one hundred percent
  (100%).

            

    

    

    
      	
              (b)

            	
              The
      Participant will be permitted to change, on a daily basis, any previous
      Investment Fund election or elections he has made with regard to his
      Contributions pursuant to subsection
(a).

            

    

    

    
      	
              (c)

            	
              The
      elections and changes to such elections which a Participant makes pursuant
      to this Section will be made by means of any method (including any
      available telephonic or electronic method which is acceptable to the Plan
      Administrator at the time the election or change is made by the
      Participant), and may be made at any time and will be effective as of the
      New York Stock Exchange closing immediately following the making of that
      election or change; provided, however, if it is determined by the Plan
      Administrator or his delegate that an investment election made by a
      Participant is invalid or defective, the Participant’s election, until
      duly revised by him, will be deemed to have been made in favor of the
      Plan’s Default Investment Fund which is applicable to his age (e.g., such
      a Participant who will be age 65 in calendar year 2025 will have his
      contributions directed to the 2025 Freedom
  Fund).

            

    

    

    4.020  Transfers
among Investment Funds.

    

    
      	
              (a)

            	
              A
      Participant will be permitted to have the whole or a portion of the value
      of his interest in any of the Plan’s Investment Funds which is
      attributable to his own Participant Contributions transferred out of such
      Fund and into any one or more of the other Investment
    Funds.

            

    

    

    
      	
              (b)

            	
              The
      transfers described in the preceding sub-Section include transfers of
      interests into or out of the Rockwell Collins Stock Fund (specifically
      including any interest a Participant may have in the Fund with respect to
      Company Matching Contributions, Participant Contributions, ESOP
      Contributions, and Company Retirement Contributions); provided, however,
      subsequent Company Matching Contributions made on such a Participant’s
      behalf will continue to be directed into the Rockwell Collins Stock
      Fund.

            

    

    

    4.030  General Transfer Rules and
Limitations.   The Fund transfers described in the
preceding Sections will be subject to the following limitations:

    

    
      	
              (a)

            	
              Any
      such transfer will be effected in dollar amounts or in increments of 1% of
      the value of the Participant’s interest in a transferring Fund, but in no
      event will any such transfer be in an amount less than Two Hundred and
      Fifty Dollars ($250.00), except that if the balance of a Participant’s
      interest in a Fund is less than Two Hundred and Fifty Dollars ($250.00),
      the Participant may elect to have the entire balance of his interest in
      the Fund transferred.

            

    

    

    
      
        
           

        

        
          - 24
-

          
            

          

        

        
           

        

      

    

    

    
      	
              (b)

            	
              Transfer
      elections may be made at any time, but each such election by a Participant
      will be effective and be thereafter irrevocable as of the New York Stock
      Exchange closing immediately following the Participant’s
      election.  The elections may be made by means of any method
      (including any available telephonic or electronic method) which is
      acceptable to the Plan Administrator; provided, however, that, if it is
      determined by the Plan Administrator or his delegate that an investment
      election made by a Participant is invalid or defective, the Participant’s
      election will, until duly corrected by him, be deemed to have not been
      made.

            

    

    

    4.040  Participant’s
Accounts.   Separate Participant Contribution, Rollover (if
applicable) and company contribution accounts will be established and maintained
by the Trustee to represent all amounts, adjusted for gains or losses thereon,
which have been contributed by or on behalf of a Participant as Participant
Contributions, Rollover Contributions, Transfer Contributions, Company Matching
Contributions and Company Retirement Contributions.  Such separate
Accounts must contain sufficient information to permit a determination of the
dollar balance of the Participant’s Accounts at any time and to permit, with
respect to the Rockwell Collins Stock Fund, a determination of the number of
equivalent shares of common stock held on the Participant’s behalf in at Stock
Fund.  Each Contribution on behalf of a Participant to the Rockwell
Collins Stock Fund or an Investment Fund, and each payment made to a Participant
from the Rockwell Collins Stock Fund or an Investment Fund will result in a
credit or charge to the Account representing the Participant’s interest in such
Fund.  In addition, participants may elect to receive dividend
proceeds on Rockwell Collins common stock held in the Rockwell Collins Stock
Fund as a direct cash payment or may elect to purchase, additional shares of
Rockwell Collins common stock for that Stock Fund and, therefore, will result in
appropriate adjustments to the balances in the said Stock Fund and to the value
of the Participant’s interest in that Fund.

    

    4.050  Valuation and Participant
Statements.  As of each Valuation Date, an amount equal to the
fair market value of the Funds (other than dividends received which are
attributable to whole shares of Rockwell Collins common stock which were or are
to be transferred to Participant Accounts subsequent to the record date for such
dividend) will be determined by the Trustee in such manner and on such basis as
it may deem appropriate.  At least annually, but more frequently, if
the Plan Administrator should so determine, the Trustee will forward by mail to
each Participant a statement, in such form as the Plan Administrator deems
appropriate, setting forth pertinent information relative to each Participant’s
Accounts.  Such statement will, for all purposes, be deemed to have
been accepted as correct, unless the Plan Administrator (or the Trustee, as the
case may be) is notified to the contrary by mail within sixty (60) days of the
date on which it was mailed to the Participant.

    

    
      
        
           

        

        
          - 25
-

          
            

          

        

        
           

        

      

    

    

    ARTICLE
V:  VESTING AND ACCOUNT DISTRIBUTIONS

    

    5.010  Vesting.

    

    
      	
              (a)

            	
              Every
      Participant will at all times have a One Hundred Percent (100%) vested and
      nonforfeitable interest in his After-tax Contribution Account, Pre-tax
      Contribution Account, Catch-up Contribution Account, Rockwell Collins
      Stock Fund ESOP Account, and, if applicable, Rollover
    Account.

            

    

    

    
      	
              (b)

            	
              A
      Participant who attains age fifty-five (55) after the Effective Date
      while still an Employee will thereafter have a One Hundred Percent
      (100%) vested and nonforfeitable interest in his Company Match Account and
      his Company Retirement Contribution Account.  A Participant who
      has not yet attained age fifty-five (55), but has at least three (3) years
      of Vesting Service after the Effective Date will have a One Hundred
      Percent (100%) vested and nonforfeitable interest in his Company Match
      Account and his Company Retirement Contribution
  Account.

            

    

    

    
      	
              (c)

            	
              Subject
      to subsection (b) above, a Participant who terminates employment at any
      time after the Effective Date and prior to completing three (3) years of
      Vesting Service will forfeit the portion of his Company Match Account and
      Company Retirement Contribution Account which is not vested on his
      Employment Severance Date:

            

    

    

    
      	
            	
              (1)

            	
              upon
      the Participant’s receipt of a distribution of all of his vested Account
      balances following his Employment Severance Date, but the Participant may
      have the said forfeiture restored, if he is reemployed by the Company or
      an Affiliated Company and repays the previously distributed amount within
      five (5) years of his Employment Severance
Date.

            

    

    

    
      	
            	
              (2)

            	
              on
      the fifth anniversary of his Employment Severance Date, even though he
      does not receive a distribution as a result of his termination of
      employment and even though he is reemployed by the Company or an
      Affiliated Company, if  his Reemployment Date is not within five
      (5) years of his Employment Severance
Date;

            

    

    

    
      	
               
      

            	
              provided,
      however, that a Participant’s Vesting Service with respect to Company
      Matching and Company Retirement Contributions made after his
      Reemployment Date will include his Vesting Service prior to his Employment
      Severance Date, if his Reemployment Date is less than five (5) years after
      his prior Employment Severance
Date.

            

    

    

    
      	
              (d)

            	
              Notwithstanding
      any other provision in this Section to the contrary, if the vesting
      provisions in subsection (b) of this Section should be amended in the
      future, a Participant who has completed three (3) years of Vesting Service
      at that time may elect to have his vested percentage in his Company Match
      and Company Retirement Contribution Accounts determined under the vesting
      provisions of subsection (b) as they were set forth prior to the said
      amendment.

            

    

    

    
      
        
           

        

        
          - 26
-

          
            

          

        

        
           

        

      

    

    

    

    
      	
              (e)

            	
              Any
      Participant who is a Divested Business Employee will have a One Hundred
      Percent (100%) vested and nonforfeitable interest in his Company Match or
      Company Retirement Contribution Accounts resulting from Company Matching
      and Company Retirement Contributions made to that Account prior to the
      transaction which resulted in him becoming a Divested Business
      Employee.

            

    

    

    
      	
              (f)

            	
              Effective
      July 1, 2001, a Participant will become 100% vested in his Company Match
      Account and his Company Retirement Contribution Account if he (i) dies
      while actively employed by the Company or an Affiliated Company, (ii) is
      on Layoff for a continuous period of at least thirty (30) days, or (iii)
      becomes totally and permanently Disabled, as defined in Section 1.204,
      while employed by the Company or an Affiliated
  Company.

            

    

    

    5.020  Retirement, Death, Layoff,
Etc.  Subject to the provisions of Section 5.070, as soon as
practicable after the occurrence of a Participant’s:

    

    
      	
              (a)

            	
              retirement,

            

    

    

    
      	
              (b)

            	
              death,

            

    

    

    
      	
              (c)

            	
              Layoff
      for a period of at least thirty (30)
days,

            

    

    

    
      	
              (d) 

            	
              Disability,
      as defined in Section 1.204, or

            

    

    

    
      	
              (e) 

            	
              termination
      of employment.

            

    

    

    A
Participant or his Beneficiary (in the case of the Participant’s death) will be
eligible to receive the entire vested balance of his Plan
Account.  Unless the Participant or spousal Beneficiary should elect
otherwise, such balance will remain in the Plan (subject to Section 5.050)
without any further contributions and will not be distributed until April 1 of
the calendar year following the calendar year in which the Participant attains
(or would have attained) age seventy and
one-half (701⁄2).  Distributions to such Participants will be made
pursuant to the terms of this Section and Section 5.050.

    

    5.030  Payment
Method for Distributions to Retiring Participants.  Any Participant
who is eligible for and wishes to receive a distribution under Section 5.020 on
account of his retirement on or after age fifty-five (55) will make an election
concerning the form of distribution and will provide such election to the Plan
Administrator or the Plan Administrator’s delegate prior to
distribution.  The form of distributions such a Participant may elect
will be in the form of either:

    

    
      	
              (a)

            	
              a
      lump sum payment, or

            

    

    

    
      	
              (b)

            	
              ten
      (10) or fewer annual installment payments, such installment payments to be
      equal to the value of the Participant’s Accounts as of the Valuation Date
      immediately preceding distribution, divided by the number of installments
      remaining at the time of each payment.  The initial installment
      payment will be made as soon as is practicable after the effective date of
      the Participant’s election, with subsequent payments during the elected
      installment payment period to be made as of the annual anniversary date of
      the initial installment payment.

            

    

    

    
      
        
           

        

        
          - 27
-

          
            

          

        

        
           

        

      

    

     

    
      	
              (c)

            	
              If
      a Participant who had previously commenced receipt of installment payments
      pursuant to subsection (b) returns to employment with the Company or an
      Affiliated Company, such installment payments will be suspended until the
      Participant’s subsequent retirement, at which time he would be permitted
      again to make the election described
therein.

            

    

    

    5.040  Termination
of Employment for Other Reasons.   Subject to
Section 5.070, distributions from this Plan to Participants for reasons other
than  those described in Section 5.030 or, in the case of a
Participant’s death, distributions to the Participant’s spouse, will in all
cases be made in a lump sum and will be paid in whatever form is elected by the
Participant pursuant to Section 5.070.  If the Participant is
reemployed as an Employee, the Participant will not have any further right to
receive a distribution of benefits as a result of his prior termination of
employment.

    

    5.050  Participant’s
Consent to Distribution of Benefits.   Notwithstanding
any other provisions of the Plan to the contrary, if the aggregate value of the
Accounts of a Participant who is no longer an Employee is less than One Thousand
Dollars ($1,000.00), such aggregate value will be distributed directly to such
Employee within one hundred and eighty (180) days of his termination of
employment with the Company.  If the aggregate value of such a
Participant’s Account is in excess of One Thousand Dollars ($1,000.00) and the
Participant has not attained age seventy and one-half (701⁄2), no distribution of
benefits under the Plan will be made, unless the Plan Administrator or his
delegate will first have obtained the Participant’s consent
thereto.  In the event such consent is not so obtained, the
Participant’s Accounts will be retained by the Plan and will be maintained and
valued in accordance with Article IV.  Distribution of the
Participant’s Accounts pursuant to this Section will be made following the date
on which the Participant’s consent to such distribution is obtained or, if
earlier, the date on which the Participant attains age seventy and one-half
(701⁄2) or dies.

    

    5.060  Distributions
to Divested Business Employees.  A Participant who
is a Divested Business Employee will be permitted to elect to have his Plan
Account balance distributed to him following the completion of the transaction
which results in his becoming such a Divested Business
Employee.  Distributions under this Section will be made to the
Participant as soon as practicable following his providing the Plan
Administrator or his delegate with an election therefore, but must consist of
the entire balance of the Participant’s Plan Account and must be paid in a lump
sum in whatever form is elected by the Participant pursuant to Section
5.070.

    

    5.070  Form of
Distributions – Stock or Cash.   Distributions
made under this Article will be made to Participants and, when applicable, their
Beneficiaries in the form of cash or common stock, or in a combination of cash
and common stocks, valued as of the Valuation Date on which the distribution is
processed, pursuant to subsections (a) and (b):

    

    
      
        
           

        

        
          - 28
-

          
            

          

        

        
           

        

      

    

    

    
      	
              (a)

            	
              With
      respect to Investment Funds other than the Rockwell Collins Stock
      Fund, a
      Participant must receive the entire vested balance of his Accounts in such
      Funds in cash.

            

    

    

    
      	
              (b)

            	
              With
      respect to the Rockwell Collins Stock Fund, the Participant will be
      permitted, if he should so elect, to receive the entire balance of his
      Accounts in such Funds in or in shares of Rockwell Collins common stock
      equal in number to the maximum number of whole shares of common stock
      which could be purchased for the closing price of that common stock on the
      applicable Valuation Date (as such price is documented on the New York
      Stock Exchange -- Composite Transactions listing) or, in the event such
      date falls on a day on which for any reason there are no trades of such
      stock reflected on such listing, the next trading day subsequent to that
      date.  In addition, the Participant will be paid in cash for the
      value of any partial shares of the said common stock and the amount of any
      cash dividends received since that date which are attributable to the
      number of whole shares of common stock distributed to
  him.

            

    

    

    5.080  Transfer of Distribution Directly to
Eligible Retirement Plan.  If a Participant entitled to a
distribution under Section 5.020, a Beneficiary pursuant to Article VII, or a
former spouse entitled to a distribution pursuant to Section 9.120(b)
should so request in writing, the Plan Administrator will cause all or a portion
of the amounts (including shares of Rockwell Collins common stock) payable to
such individual to be transferred from the Trustee directly to the custodian of
an Eligible Retirement Plan specified by such
individual.  Notwithstanding the foregoing, prior to January 1, 2007,
such direct transfer is not available to a Beneficiary other than the
Participant’s surviving spouse.  Effective January 1, 2002, such
direct transfers may include After-tax Contributions, provided the Eligible
Retirement Plan agrees to separately account for such amounts (and, prior to
January 1, 2007, is a defined contribution plan).  Such request will
be made, in the case of a Participant, at the time his consent to such
distribution is given to the Plan Administrator pursuant to Section 5.050, or at
such later date as the Plan Administrator permits, or, in the case of the
Participant’s spouse, former spouse, or Beneficiary at such time as the Plan
Administrator determines.  Prior to effecting such a transfer the Plan
Administrator may require evidence reasonably satisfactory to him that the
entity to which such transfer is to be made is in fact an Eligible Retirement
Plan and that such Eligible Retirement Plan may receive the distribution in the
forms required under this Article.

    

    5.090  Required Minimum
Distributions.  The provisions of this Section 5.090 provide
minimum rules regarding distributions under the Plan and will take precedence
over any inconsistent provisions of this Plan.  This Section provides
the minimum distribution requirements that apply under Code § 401(a)(9), which
all distributions under the Plan must meet.  However, nothing in this
Section expands the distribution options otherwise available to any Participant
or Beneficiary under the Plan.  Distributions in all cases will be
made in accordance with Code Section 401(a)(9) and regulations
thereunder.

    

    
      
        
           

        

        
          - 29
-

          
            

          

        

        
           

        

      

    

    

    
      	
              (1)

            	
              Required Beginning
      Date. Distribution of
      Accounts to a Participant who is not a 5% owner of the Company or an
      Affiliated Company, as determined under Code Section 416(i)(1)(B), at any
      time during the Plan Year ending in the calendar year in which he or she
      attains age 701⁄2, and who continues to be employed by the Company or
      an Affiliated Company following attainment of age 701⁄2, must commence no
      later than April 1 of the calendar year following the calendar year in
      which the Participant retires.  Distribution to a 5% owner as
      described in the preceding sentence or to a Participant who has terminated
      employment with the Company and all Affiliated Companies, must commence no
      later than April 1 of the calendar year following attainment of age
      701⁄2.  Installment distributions made with respect to a
      Participant who has reached his required beginning date must satisfy the
      requirements of the regulations under Code Section
    401(a)(9).

            

    

    

    
      	
              (2)

            	
              Death of Participant
      Before Distributions Begin. If the Participant
      dies before distributions begin, the Participant’s entire vested benefit
      under the Plan shall be distributed, or begin to be distributed, no later
      than as follows:

            

    

    

    
      	
               
      

            	
              (i)

            	
              If
      the Participant’s surviving spouse is the Participant’s sole Beneficiary,
      then distributions to the surviving spouse shall begin by December 31 of
      the calendar year in which the Participant would have attained age 701⁄2, or
      if later, by December 31 of the calendar year immediately following the
      calendar year in which the Participant
died.

            

    

     

    
      	
               
      

            	
              (ii)

            	
              If
      the Participant’s surviving spouse is not the Participant’s sole
      Beneficiary, the Participant’s entire interest shall be distributed by
      December 31 of the calendar year containing the fifth anniversary of the
      Participant’s death.

            

    

     

    
      	
               
      

            	
              (iii)

            	
              If
      the Participant’s surviving spouse is the Participant’s sole Beneficiary
      and the surviving spouse dies after the Participant but before
      distributions to the surviving spouse begin, the Participant’s entire
      vested interest shall be distributed by December 31 of the calendar year
      containing the fifth anniversary of the surviving spouse’s
      death.

            

    

    

    
      
        
           

        

        
          - 30
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    ARTICLE
VI:  WITHDRAWALS AND LOANS

    

    6.010  Withdrawals
from Accounts by Participants under Age 591⁄2.

    

    
      	
              (a)

            	
              A
      Participant who has not yet attained age fifty-nine and
      one-half (591/2)
      may elect while still employed to withdraw certain amounts from his
      Accounts.  As soon as is practicable after the Plan
      Administrator’s receipt of such an election, there will be paid or
      transferred to such Participant cash and, if applicable, common stock from
      his Accounts in the following
order:

            

    

    

    
      	
            	
              (1)

            	
              first,  from
      that portion of his After-tax Contribution Account which is attributable
      to his Supplemental After-tax
Contributions;

            

    

    

    
      	
            	
              (2)

            	
              second,
      from that portion of his After-tax Contribution Account which is
      attributable to his Basic After-tax
  Contributions;

            

    

    

    
      	
            	
              (3)

            	
              third,  from
      that portion of his Rollover Account which is attributable to any
      After-tax Contributions which may have been made by the Participant to a
      predecessor plan and which may have been transferred by him to this Plan
      as Rollover or Transfer Contribution described in Section 1.530 or
      1.590;

            

    

    

    
      
        	
              	
                (4)

              	
                fourth,  from
      that portion of his Rollover Account which is attributable to any Pre-tax
      Contributions which may have been made by the Participant to a predecessor
      plan and which may have been transferred by him to this Plan as Rollover
      or Transfer Contribution described in Section 1.530 or
    1.590;

              

      

    

    

    
      	
            	
              (5)

            	
              fifth,  from
      that portion of his Company Match Account which is attributable to company
      contributions made to a predecessor to this
  plan;

            

    

    

    
      	
            	
              (6)

            	
              sixth,
      from the vested portion of his Company Match Account, except that, subject
      to the provisions of Section 6.030, withdrawal of such vested portion of a
      Company Match Account will only be permitted in the event of
      Hardship;

            

    

    

    
      	
            	
              (7)

            	
              seventh,
      from that portion of his Rockwell Collins Stock Fund ESOP Account which is
      attributable to his ESOP
Contributions;

            

    

    

    
      	
            	
              (8)

            	
              eighth,
      from that portion of his Pre-tax Contribution Account which is
      attributable to his Supplemental Pre-tax
  Contributions;

            

    

    

    
      	
            	
              (9)

            	
              ninth,
      from that portion of his Pre-tax Contribution Account which, if
      applicable, is attributable to any Catch-up Contributions he may have made
      to the Sub-Plan; and

            

    

    

    
      	
            	
              (10)

            	
              tenth,
      from that portion of his Pre-tax Contribution Account which is
      attributable to his Basic Pre-tax
Contributions.

            

    

    

    
      
        
           

        

        
          - 31
-

          
            

          

        

        
           

        

      

    

    

    
      	
              (b)

            	
              At
      no time prior to a Participant’s termination of employment, death or
      retirement will the assets of his Company Retirement Contribution Account
      be available or eligible for withdrawal or distribution to the
      Participant, whether prior to or following his attainment of age
      fifty-nine and one-half (591⁄2).

            

    

    

    
      	
              (c)

            	
              Withdrawals
      pursuant to this subsection may only be made by a Participant once every
      six (6) months; provided, however, that this limitation may be waived by
      the Plan Administrator for the six-month period immediately following any
      due declaration by the President of the United States under applicable
      federal law that a particular occurrence or situation constitutes a
      national disaster condition, if the withdrawal is requested for a reason
      associated with financial need of the Participant resulting from the
      effects of the said condition.

            

    

    

    
      	
              (d)

            	
              Withdrawals
      from a Participant’s Company Match Account pursuant to subsection
      (a)(6)  prior to his attainment of age fifty-nine and one-half
      (591⁄2) will only be permitted upon the occurrence of a Hardship and such
      withdrawals will be administered pursuant to Section 6.030. Company
      Matching Contributions will be suspended and will not be made to his
      Company Match Account during the six-month period immediately following
      the withdrawal.

            

    

    

    
      	
              (e)

            	
              Withdrawals
      from a Participant’s Pre-tax Contribution Account pursuant to subsections
      (a)(7), (a)(8), and (a)(9) prior to his attainment of age fifty-nine and
      one-half (591⁄2) will only be permitted upon the occurrence of a Hardship
      and such withdrawals will be administered pursuant to Section
      6.030.

            

    

    

    
      	
              (f)

            	
              Withdrawals
      from the Rockwell Collins Stock Fund may, at the election of the
      withdrawing Participant, be either in the form of cash or Rockwell Collins
      common stock except that under the conditions of a Hardship the election
      must always be made in the form of
cash.

            

    

    

    
      	
              (g)

            	
              A
      processing fee in the amount of Twenty Dollars ($20.00) will be assessed
      in connection with the initiation of each withdrawal prior to age
      fifty-nine and one-half (591⁄2) except in the case of
      Hardship.  This fee will be deducted from the Borrower’s Plan
      Account at the same time that the withdrawal is approved and
      processed.

            

    

    

    
      	
              (h)

            	
              Such
      withdrawals, if in cash, will be for a minimum of One Hundred Dollars
      ($100.00) and, if in the form of common stock, will be in the number of
      whole shares whose market values is One Hundred Dollars ($100.00) or more
      at the time of the withdrawal.

            

    

    

    
      
        
           

        

        
          - 32
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    6.020  Withdrawal
from Accounts by Participants Over Age 591⁄2.

    

    
      	
              (a)

            	
              A
      Participant who has attained age fifty-nine and one-half (591⁄2) and is
      still employed by the Company may elect to withdraw any or all of the
      amounts in his Accounts.  As soon as is practicable after the
      Plan Administrator’s receipt of such an election, there will be paid or
      transferred to such Participant cash and, if applicable, common stock from
      his Accounts in the following
order:

            

    

    

    
      	
            	
              (1)

            	
              first,
      from that portion of his After-tax Contribution Account which is
      attributable to his Supplemental After-tax
  Contributions;

            

    

    

    
      	
            	
              (2)

            	
              second,
      from that portion of his After-tax Contribution Account which is
      attributable to his Basic After-tax
  Contributions;

            

    

    

    
      
        	
              	
                (3)

              	
                third,
      from that portion of his Rollover Account which is attributable to any
      After-tax Contributions which may have been made by the Participant to a
      predecessor plan and which may have been transferred by him to this Plan
      as Rollover or Transfer Contribution described in Section 1.530 or
      1.590;

              

      

    

    

    
      
        	
              	
                (4)

              	
                fourth,  from
      that portion of his Rollover Account which is attributable to any Pre-tax
      Contributions which may have been made by the Participant to a predecessor
      plan and which may have been transferred by him to this Plan as Rollover
      or Transfer Contribution described in Section 1.530 or
    1.590;

              

      

    

    

    
      	
            	
              (5)

            	
              fifth,
      from that portion of his Pre-tax Contribution Account which is
      attributable to his Supplemental Pre-tax
  Contributions;

            

    

    

    
      	
            	
              (6)

            	
              sixth,
      from that portion of his Pre-tax Contribution Account which is
      attributable to any Catch-up Contributions he may have made to the
      Sub-Plan;

            

    

    

    
      	
            	
              (7)

            	
              seventh,  from
      that portion of his Pre-tax Contribution Account, which is attributable to
      his Basic Pre-tax Contributions;

            

    

    

    
      	
            	
              (8)

            	
              eighth,
      from that portion of his Company Contribution Account which is
      attributable to from that portion of his Company Match Account which is
      attributable to company contributions made to the predecessor to this
      plan;

            

    

    

    
      	
            	
              (9)

            	
              ninth,
      from the vested portion of his Company Match Account;
  and

            

    

    

    
      	
            	
              (10)

            	
              tenth,
      from that portion of his Rockwell Collins Stock Fund ESOP Account, which
      is attributable to his ESOP
Contributions.

            

    

    

    
      	
              (b)

            	
              At
      no time prior to a Participant’s termination of employment, death or
      retirement will the assets of his Company Retirement Contribution Account
      be available or eligible for withdrawal or distribution to the
      Participant, whether prior to or following his attainment of age
      fifty-nine and one-half (591⁄2).

            

    

    

    
      
        
           

        

        
          - 33
-

          
            

          

        

        
           

        

      

    

    

    

    
      	
              (c)

            	
              Withdrawals
      from the Rockwell Collins Stock Fund may, at the election of the
      withdrawing Participant, be in the form of cash or, as applicable, in the
      form of Rockwell Collins common
stock.

            

    

    

    
      
        	
                (d) 

              	
                 A
      processing fee in the amount of Twenty Dollars ($20.00) will be assessed
      in connection with the initiation of each withdrawal.  This fee
      will be deducted from the Borrower’s Plan Account at the same time that
      the withdrawal is approved and
processed.

              

      

    

    

    
      
        	
                (e) 

              	
                 Such
      withdrawals, if in cash, will be for a minimum of One Hundred Dollars
      ($100.00) and, if in the form of common stock, will be in the number of
      whole shares whose market values is One Hundred Dollars ($100.00) or more
      at the time of the
withdrawal.

              

      

    

    

    6.030  Hardship
Withdrawals.  Subject to any restrictions the Plan
Administrator might establish with respect to loans made pursuant to
Section 6.050, the following provisions may apply, in the event of the
occurrence of a Hardship.

    

    
      	
              (a)

            	
              A
      Participant who has not attained age fifty-nine and one-half (591⁄2) may
      request approval to withdraw some or all of the balance of his Pre-tax
      Contribution Account, Rockwell Collins Stock Fund ESOP Account, or the
      vested portion of his Company Match Account, if the Participant can
      demonstrate that the withdrawal is required as a result of a Hardship
      (including payment of any federal, state or local income taxes and
      penalties reasonably anticipated to result from such Hardship
      withdrawal).

            

    

    

    
      	
              (b)

            	
              Any
      determination of the existence of a Hardship, the reasonable availability
      to the Participant of funds from other sources and the amount necessary to
      be withdrawn on account of such Hardship will be made on the basis of all
      relevant facts and circumstances and in accordance with the provisions of
      this Section and Section 1.300, as applied in a uniform and
      nondiscriminatory manner.  Such determination may, if it is
      reasonable in light of all relevant and known facts and circumstances, be
      based upon the Participant’s representation that the Hardship cannot be
      relieved:

            

    

    

    
      	
            	
              (1)

            	
              through
      reimbursement or compensation by insurance or
  otherwise;

            

    

    

    
      	
            	
              (2)

            	
              by
      reasonable liquidation of the Participant’s assets, to the extent that
      such liquidation would not itself cause an immediate and heavy financial
      need;

            

    

    

    
      	
            	
              (3)

            	
              by
      suspension of Participant Contributions to the Plan;
  or

            

    

    

    
      	
            	
              (4)

            	
              by
      other distributions (other than Hardship distributions) or loans (which
      meet the requirements of Code §72(p)) from the Plan and any other plan
      maintained by an Affiliated Company or by any former employer or by
      borrowing from commercial sources at reasonable commercial
      rates.

            

    

    

    
      
        
           

        

        
          - 34
-

          
            

          

        

        
           

        

      

    

    

    

    
      	
              (c)

            	
              Hardship
      withdrawals taken pursuant to this Section must be in cash and, in the
      event that the source of a Hardship withdrawal is the Rockwell Collins
      Stock Fund, the said Hardship withdrawal must be in cash and may not be in
      the form of common stock.

            

    

    

    
      	
              (d)

            	
              An
      individual who receives a Hardship distribution pursuant to this Section
      prior to his attainment of age fifty-nine and one-half (591⁄2) will not be
      permitted to make any Participant Contributions to the Plan during the six
      (6) months immediately following his receipt of the said Hardship
      distribution.  In addition, such Hardship distributions will
      only be available to Participants hereunder only once every six (6)
      months.

            

    

    

    6.040  Allocation of Withdrawals Among
Investment Funds.  Withdrawals and forfeitures under Sections
6.010 through 6.030 will be taken from a Participant’s Accounts in the
Investment Funds in a pro rata fashion, based upon the relative size of such
Accounts.

    

    6.050  Loans.  The Plan
Administrator will establish, and may from time to time modify, procedures
pursuant to which any Employee or other “party in interest” (as defined in ERISA
§3(14)) may apply for and receive a loan from the Plan, subject to the
provisions and limitations set forth in Appendix A below:

    

    
      	
              (a)

            	
              Loans
      available from the Plan will be in amounts not exceeding the least
      of:

            

    

    

    
      	
            	
              (1)

            	
              the
      aggregate of the balances in the borrower’s Pre-tax and After-tax
      Contribution Accounts, Rockwell Collins Stock Fund ESOP Account, and, if
      applicable, in his Rollover
Account;

            

    

    

    
      	
            	
              (2)

            	
              an
      amount which, when combined with all outstanding loans to the borrower
      from all other plans of all Affiliated Companies, equals Fifty Thousand
      Dollars ($50,000.00), reduced by the excess, if any,
    of

            

    

    

    
      	
            	
              (A)

            	
              the
      highest outstanding and unpaid balances of all prior loans to the borrower
      from the Plan and such other plans during the twelve (12) month period
      immediately preceding the date on which such loan is made,
      over

            

    

    

    
      	
            	
              (B)

            	
              the
      outstanding balance of any loan to the borrower from the Plan or such
      other plans on the date on which the loan is
  made;

            

    

    

    
      	
            	
              (3)

            	
              one-half
      (1⁄2) of the aggregate of the vested balances of the borrower’s Accounts;
      or

            

    

    

    
      	
               
      

            	
              (4)

            	
              such
      amount, not exceeding the amounts described in (1) through (3) above,
      as the Plan Administrator
determines.

            

    

    

    
      	
              (b)

            	
              All
      such loans will be made available to all eligible Employees and other
      parties in interest on a reasonably equivalent and non-discriminatory
      basis and will be governed by the provisions of Appendix A, as such
      Appendix is from time to time constituted, pursuant to determination of
      the Plan Administrator.

            

    

    

    
      
        
           

        

        
          - 35
-

          
            

          

        

        
           

        

      

    

    

    

    
      	
              (c)

            	
              While,
      as set forth in Paragraph (3), all of a borrower’s Accounts will be
      considered in determining the amount available to him for a loan herefrom,
      amounts attributable to contributions from the Company to the Plan (i.e.,
      Company Matching Contributions to the 401(k) Sub-Plan and Company
      Retirement Contributions to the Retirement Contribution Sub-Plan) will not
      be directly available as a loan
source).

            

    

    

    6.060 Transfers to Certain Affiliated
Company Plans.  A Participant who though remaining an Employee
is no longer an Eligible Employee may elect, if his continuing employment is
with an Affiliated Company, to have the entire amount credited to his
Accounts in this Plan transferred to any qualified individual account plan of
the said Affiliated Company; provided that (a) such plan prohibits distribution
of amounts attributable to the Participant’s Pre-tax Contributions and Catch-up
Contributions except upon severance from employment, Disability, attainment of
age fifty-nine and one-half (591⁄2), Hardship, or other events permitting a
distribution under Section Code §401(k), and (b) any benefit, right or feature
relating to the transferred amounts that is subject to the protections of Code
§411(d)(6) and regulations issued thereunder is preserved under such other
plan.

    

    6.070  Transfer of Distribution or
Withdrawal to Eligible Retirement Plan.  Except in the case of
Hardship withdrawals pursuant to Section 6.030, if a Participant who is entitled
to an in-service withdrawal under this Article VI should so request in
writing at the time his election to receive such withdrawal is made or at such
later date as the Plan Administrator may permit, the Plan Administrator will
cause all or a portion of the amounts (including shares of Rockwell Collins
common stock) with respect to which the Participant would be taxable under Code
§402 to be transferred from the Trustee directly to the custodian of an Eligible
Retirement Plan specified by the Participant.  Prior to effecting such
transfer the Plan Administrator will require evidence reasonably satisfactory to
him that the entity to which such transfer is to be made is in fact an Eligible
Retirement Plan and that such Eligible Retirement Plan may receive the
distribution in the forms required under this Article.

    

    
      
        
           

        

        
          - 36
-

          
            

          

        

        
           

        

      

    

    

    ARTICLE
VII:   DEATH BENEFITS

    

    7.010  Designation of a
Beneficiary.  Subject to the provisions of Section 7.020,
in the event of a Participant’s death, payment of the benefits provided under
this Plan will be made to such person or persons as he has designated as his
Beneficiary to receive such benefits.

    

    7.020  Spouse or Domestic Partner as
Automatic Beneficiary.  In the case of a Participant who is
married at the time of his death and who dies prior to complete distribution of
his Accounts, the Beneficiary will be deemed to be the Participant’s spouse
regardless of any contrary designation, unless the Participant has filed with
the Plan Administrator a written Beneficiary designation naming a person or
persons other than such spouse.  (Prior to May 1, 2009, the preceding
sentence shall apply only if the Participant had been married for at least one
(1) year at the time of his death.)  Such written designation must be
accompanied by a written consent of the Participant’s spouse, but may be
accepted by the Plan Administrator without such a written consent, if it is
established to the Plan Administrator’s satisfaction that such a written consent
cannot be obtained because:

    

    
      	
              (a)

            	
              there
      is no spouse;

            

    

    

    
      	
              (b)

            	
              the
      spouse cannot be located; or

            

    

    

    
      	
              (c)

            	
              other
      circumstances exist, as permitted under Code §417(a)(2), which prevent
      presentation of such consent to the Plan
  Administrator.

            

    

    

    Such
written consent (which must be witnessed by a notary public) must be on a form
furnished to the Participant by the Plan Administrator and must acknowledge the
effect of the consent.  In the event that a Participant has a new
spouse, the previous designation of a prior spouse will be void and the new
spouse will be deemed to be the Participant’s Beneficiary, unless the
Participant makes a written designation of a person or persons other than the
new spouse in a manner described above in this Section.

    

    Effective
May 1, 2009, in the case of a Participant who has an affidavit of domestic
partnership on file with Company at the time of his death, the Participant’s
domestic partner will be deemed to be the Participant’s Beneficiary, unless,
after filing such affidavit, the Participant files a new Beneficiary designation
naming a person other than the domestic partner as his
Beneficiary.  The domestic partner’s consent to the designation of a
different Beneficiary is not required.

    

    7.030  Beneficiary
Changes.  A Participant may change his designation of
Beneficiary at any time by filing a request for such change with the Plan
Administrator (or such other person as is designated by the Plan
Administrator).  Such change will become effective only upon receipt
of the request by the Plan Administrator (or the Plan Administrator’s delegate),
but upon such receipt, the change will relate back to and be effective as of the
date the Participant signed such request; provided, however, that the Plan
Administrator, the other named fiduciaries and the Trust Fund will be not be
liable in any way or to any degree for any payment made to the Beneficiary
designated before receipt of such request.

    

    
      
        
           

        

        
          - 37
-

          
            

          

        

        
           

        

      

    

    

    7.040  Participant’s Estate as Beneficiary
in Certain Cases.  The benefits payable from a Participant’s
Accounts at the time of his death will be paid to the Participant’s estate, if
any of the following circumstances should exist at the time of his
death:

    

    
      	
              (a)

            	
              no
      valid designation of Beneficiary exists pursuant to this
      Article;

            

    

     

    
      	
              (b)

            	
              the
      Participant has no surviving spouse to whom the benefit is payable under
      Section 7.020;

            

    

    

    
      	
              (c)

            	
              the
      Plan Administrator or Trustee has a doubt as to the rights of a potential
      Beneficiary; or

            

    

    

    
      	
              (d)

            	
              a
      previously designated Beneficiary predeceases the
    Participant.

            

    

    

    In such
case, the Plan Administrator and the Trustee will not be individually liable in
any manner and to any degree with respect to such payment.

    

    7.050  Payment to a
Beneficiary.  Upon receipt by the Plan Administrator (or
another person designated by him) of evidence satisfactory to such person of the
death of a Participant and of the identity and existence at the time of such
death of the Beneficiary, the Plan Administrator will direct the Trustee to pay
the Participant’s Accounts to such Beneficiary.

    

    
      
        
           

        

        
          - 38
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    ARTICLE
VIII:   TRUST AGREEMENT

    

    8.010  Establishment of Trust
Fund.  The property resulting from contributions made on behalf
of all Participants, including contributions made by the Company, will be held
in a Trust Fund by a Trustee selected by the EB Committee pursuant to a Trust
Agreement entered into between such Trustee and the EB Committee.

    

    8.020  Investment Funds. The Plan, as
well as the Trust Fund associated with the Plan, is intended to at all times be
structured and administered in a manner which conforms to the requirements of
ERISA §404(c).  In keeping with the requirements of the said ERISA
provision, the Trustee will establish and maintain as parts of the Trust Fund
individual Investment Funds, as are described below.

    

    
      	
              (a)

            	
              The
      Investment Funds available under the Trust Fund will consist of mutual
      funds or collective funds, accounts or other similar investment
      vehicles.

            

    

    

    
      	
              (b)

            	
              The
      Rockwell Collins Stock Fund will consist of all cash, Rockwell Collins
      common stock and the proceeds and income from that common stock, which are
      attributable to Participant Contributions, Company Matching Contributions,
      ESOP Contributions and Company Retirement Contributions, with the amounts
      attributable to each form of Contribution to be separately accounted for
      within the said Rockwell Collins Stock Fund.  The dividends or
      other proceeds or income received by Rockwell Collins Stock Fund will be
      distributed in cash or invested by the Trustee in Rockwell Collins common
      stock and will remain in the said Rockwell Collins Stock Fund as directed
      by the Participant.

            

    

    

    8.030  Trustee’s Powers and
Authority.  Subject to the provisions of Section 8.050
concerning certain power and authority connected with the common stock of
Rockwell Collins, which is held in the Rockwell Collins Stock Fund, the Trustee
will have full authority and discretion with respect to management of the assets
of the Trust Fund, including management of the assets of the individual
Investment Funds held thereunder.

    

    8.040  Statutory
Limits.   In making all investments pursuant to this Plan,
the Trustee will:

    

    
      
        	
                (a)

              	
                be
      subject to applicable provisions of ERISA governing the exercise of its
      fiduciary responsibilities on behalf of the Trust Fund and this Plan, as
      well as to all applicable securities
      laws governing the investments of the Trust Fund (including any investment
      companies or mutual funds therein), but will not be bound by any law or
      any court doctrine of any state or jurisdiction limiting trust
      investments, except as otherwise provided or permitted by
      ERISA;

              

      

    

    

    
      	
              (b)

            	
              at
      all times give consideration to the cash requirements of the Plan;
      and

            

    

    

    
      	
              (c)

            	
              not
      cause the Plan to engage in any transaction constituting a prohibited
      transaction under ERISA §406.

            

    

    

    
      
        
           

        

        
          - 39
-

          
            

          

        

        
           

        

      

    

    

    8.050  Duty
of Trustee as to Common Stock in Stock Funds.

    

    
      	
              (a)

            	
              Except
      as otherwise provided in this Section, the duty with respect to the
      voting, retention, and tendering of common stock held in the Rockwell
      Collins Stock Fund will lie solely with the Trustee and will be exercised
      in the Trustee’s discretion.

            

    

    

    
      	
              (b)

            	
              With
      respect to any matter as to which a vote of the outstanding shares of such
      common stock held in the Rockwell Collins Stock Fund is
      solicited:

            

    

    

    
      	
            	
              (1)

            	
              the
      Trustee will solicit the direction in writing of each Participant, as to
      the manner in which voting rights of the Participant’s vested and
      non-vested shares of common stock held in or credited to the Stock Fund as
      of the record date fixed for determining the holders of common stock
      entitled to vote on such matter are to be exercised with respect to such
      matter, and the Trustee will exercise the voting rights of such shares
      with respect to such matter in accordance with the last-dated timely
      written direction, if any, of such Participant;
  and

            

    

    

    
      	
            	
              (2)

            	
              the
      Trustee, in its sole discretion, will exercise voting rights of shares of
      common stock held in the Rockwell Collins Stock Fund as to which
      no timely direction has been received pursuant to
      Paragraph (1).

            

    

    

    
      	
              (c)

            	
              In
      the event of any Tender Offer:

            

    

    

    
      	
            	
              (1)

            	
              the
      Trustee will solicit the direction in writing of each Participant, as to
      the tendering or depositing of any vested or non-vested shares of common
      stock held in any Stock Fund with respect to such Participant and, except
      as limited by subsection (d), will tender or deposit such shares pursuant
      to any such Tender Offer in accordance with the last dated timely written
      direction, if any, of such
Participant;

            

    

    

    
      	
            	
              (2)

            	
              the
      Trustee will have all responsibility, except as limited by subsection (d),
      with respect to the retention, tendering or depositing of shares of common
      stock held in the Stock Fund as to which no timely direction has been
      received pursuant to paragraph (1).

            

    

    

    
      	
              (d)

            	
              Shares
      of common stock held in the Stock Funds will not be tendered or deposited
      by the Trustee pursuant to any such Tender Offer until the earlier
      of:

            

    

    

    
      	
            	
              (1)

            	
              immediately
      preceding the scheduled expiration of the Tender Offer pursuant to which
      such shares are to be tendered or deposited,
or

            

    

    

    
      	
            	
              (2)

            	
              immediately
      preceding the expiration of the period during which such shares of common
      stock will be taken up and paid for on a pro rata basis pursuant to such
      Tender Offer, or

            

    

    

    
      
        
           

        

        
          - 40
-

          
            

          

        

        
           

        

      

    

    

    
      	
            	
              (3)

            	
              the
      expiration of thirty (30) days from the date of the Trustee’s
      solicitation of Participants’ written direction pursuant to subsection
      (c)(1).

            

    

    

    
      	
              (e)

            	
              The
      duty with respect to the withdrawal, or other exercise of any right of
      withdrawal, of shares of common stock held in the Rockwell Collins Stock
      Fund which have been tendered or deposited pursuant to any such Tender
      Offer will be solely that of the Trustee; provided that the Trustee may
      solicit the direction in writing of each Participant with respect to whom
      any such shares of common stock have been tendered or deposited pursuant
      to any such Tender Offer as to the withdrawal of, or other exercise of any
      right to withdraw, such shares of common stock and, if such solicitation
      is made, the Trustee will act in accordance with the last dated timely
      written direction, if any, of each such
  Participant.

            

    

    

    8.060  Rights in the Trust
Fund.  Nothing in the Plan or in the Trust Agreement will be
deemed to confer any legal or equitable right or interest in the Trust Fund in
favor of any Participant, Beneficiary or other person, except to the extent
expressly provided in the Plan.

    

    8.070  Taxes,
Fees and Expenses of the Trustee.

    

    
      	
              (a)

            	
              The
      reasonable fees and expenses of the Trustee (including the reasonable
      expenses of the Trustee’s counsel) will be paid from the Trust Fund and
      will constitute a charge on the Trust Fund until so paid; provided,
      however, that in no event will the Trust Fund nor the Company (unless the
      Company is specifically so directed by resolution of the Company’s Board
      of Directors) pay any such Trustee fees
    or expenses:

            

    

    

    
      	
            	
              (1)

            	
              for
      preparation or prosecution of any action against the Company, the Plan,
      any member of the EB Committee or the Plan Administrator,
    or

            

    

    

    
      	
            	
              (2)

            	
              for
      the defense or settlement of, or the satisfaction of a judgment related
      to, any proceeding arising either out of any alleged misfeasance or
      nonfeasance in any person’s performance of duties with respect to the Plan
      or out of any alleged wrongful act against the
  Plan.

            

    

    

    
      	
               
      

            	
              Included
      in the reasonable expenses payable from the Trust Fund are any direct
      internal costs (which may include reimbursement of compensation of
      employees of the Company) associated with Plan operations and
      administration, the payment of which will be in conformity with the
      requirements of Title I of ERISA.  Neither the Plan
      Administrator nor the members of the EB Committee may be compensated from
      the Plan but may be compensated by the Company for services rendered on
      behalf of the Plan.

            

    

    

    
      	
              (b)

            	
              Brokerage
      fees, commissions, stock transfer taxes and other charges and expenses
      incurred in connection with transactions relating to the acquisition or
      disposition of property for or of the Trust Fund, or distributions
      therefrom, will be paid from the Trust Fund.  Taxes, if any,
      payable by the Trustee on the assets at any time held in the Trust Fund or
      on the income thereof will be paid from the Trust
  Fund.

            

    

    

    
      
        
           

        

        
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    ARTICLE
IX:  ADMINISTRATION

    

    9.010  General
Administration.  Authority to control and manage the operation
and administration of the Plan is vested in the EB Committee, except to the
extent that:

    

    
      	
              (a)

            	
              the
      Plan Administrator is allocated any such authority under the
      Plan;

            

    

    

    
      	
              (b)

            	
              the
      Trustee may, pursuant to Article VIII, be granted exclusive authority and
      discretion to manage and control all or any portion of the assets of the
      Plan;

            

    

    

    
      	
              (c)

            	
              the
      EB Committee, the Plan Administrator, the Retirement Committee and the
      Trustee constitute ERISA named fiduciaries of the
  Plan.

            

    

    

    9.020  EB Committee.  The
Board of Directors will, from time to time, determine the size of the EB
Committee and appoint its individual members.  The EB Committee will
act, with or without a meeting, in a manner consistent with the rules and
regulations adopted pursuant to Section 9.060(c).

    

    9.030  EB Committee
Records.  The EB Committee will keep such records and data as
it deems appropriate and it will from time to time file with the Board of
Directors such reports as the latter may request.  It will be a
function of the EB Committee to keep records of the assets of the Trust Fund,
based upon reports furnished by the Trustee, and the evaluations placed thereon
by the Committee will be final and conclusive.

    

    9.040  Funding Policy.  The
EB Committee will be responsible for determining a funding policy of the Plan
and will from time to time advise the Trustee of such policy.

    

    9.050  Allocation and Delegation of Duties
Under Plan.  The EB Committee and the Plan Administrator each
have the following powers and authorities:

    

    
      	
              (a)

            	
              to
      designate agents to carry out responsibilities relating to the Plan, other
      than fiduciary responsibilities;
and

            

    

    

    
      	
              (b)

            	
              to
      employ such legal, consultant, accounting, clerical and other assistance
      as it may deem appropriate in carrying out the provisions of this Plan
      including one or more persons to render advice with regard to any
      responsibility any fiduciary may have under the
  Plan.

            

    

    

    9.060  EB Committee
Powers.  In addition to any powers and authority conferred on
the EB Committee elsewhere in the Plan or by law, the EB Committee has the
following powers and authority:

    

    
      	
              (a)

            	
              to
      allocate fiduciary responsibilities, other than trustee responsibilities
      (responsibilities under the Trust Agreement to manage or control the Plan
      assets) to one or more members of the EB Committee or to the Plan
      Administrator and to designate one or more persons (other than the
      Trustee) to carry out such fiduciary
  responsibilities;

            

    

    

    
      
        
           

        

        
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              (b)

            	
              to
      determine the manner in which the assets of this Plan, or any part
      thereof, will be disbursed by the Trustee, except as relates to the making
      and retention of investments; and

            

    

    

    
      	
              (c)

            	
              to
      establish rules and regulations from time to time for the conduct of the
      EB Committee’s business and for the administration and effectuation of its
      responsibilities under the Plan.

            

    

    

    9.070  Plan
Administrator.  In addition to any powers and authority
conferred on the Plan Administrator elsewhere in the Plan, the Plan
Administrator has the following powers and authority:

    

    
      	
              (a)

            	
              to
      administer, interpret, construe and apply this Plan and to decide all
      questions which may arise or which may be raised by any Employee,
      Participant, Beneficiary, or other person whatsoever, and the actions or
      decisions of the Plan Administrator in regard thereto, or in regard to
      anything or matter otherwise within his discretion, will be conclusive and
      binding on all Employees, Participants, Beneficiaries, and other persons
      whatsoever;

            

    

    

    
      	
              (b)

            	
              to
      designate one or more persons, other than the Trustee, to carry out
      fiduciary responsibilities (other than trustee
      responsibilities);

            

    

    

    
      	
              (c)

            	
              to
      establish rules and regulations from time to time for the administration
      and effectuation of his responsibilities under the
  Plan.

            

    

    

    The Plan
Administrator has such other responsibility as is designated by ERISA as the
responsibility of the administrator of the Plan and will have such other power
and authority as is necessary to fulfill his responsibilities under ERISA
or under the Plan.

    

    9.080  Reliance Upon Documents and
Opinions.  The members of the EB Committee and the Retirement
Committee and its or their delegates, the Plan Administrator, the Board of
Directors and the Company will be entitled to rely upon any tables, valuations,
computations, estimates, certificates and reports furnished by any consultants
or consulting firms, opinions furnished by legal counsel and reports furnished
by the Trustee.  The members of the EB Committee and the Retirement
Committee, the Plan Administrator, the Board of Directors and the Company will
be fully protected and will not be liable in any manner whatsoever, except as
otherwise specifically provided by law, for anything done or action taken or
suffered in reliance upon any such consultant, Trustee or
counsel.  Any and all such things done or such actions taken or
suffered by the EB Committee, the Retirement Committee, the Plan Administrator,
the Board of Directors and the Company (and its or their delegates) will be
conclusive and binding on all Employees, Participants, Beneficiaries, and other
persons whatsoever except as otherwise specifically provided by
law.  The EB Committee and the Plan Administrator may, but are not
required to, rely upon all records of the Company with respect to any matter or
thing whatsoever, and to the extent they rely thereon, such records will be
conclusive with respect to all Employees, Participants, and
Beneficiaries.

    

    
      
        
           

        

        
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    9.090  Requirement of
Proof.  The EB Committee, the Plan Administrator, the
Retirement Committee, the Board of Directors or the Company, or their delegates
may require satisfactory proof of any matter under this Plan from or with
respect to any Employee, Participant, or Beneficiary, and no such person may
acquire any rights or be entitled to receive any benefits under this Plan until
such proof is furnished as so required.

    

    9.100  Limitation on Liability and
Indemnification.   Except as provided in Part 4 of Title 1
of ERISA, no person will be subject to any liability with respect to his duties
under the Plan, unless he acts fraudulently or in bad faith.  No
person will be liable for any breach of fiduciary responsibility resulting from
the act or omission of any other fiduciary or any person to whom fiduciary
responsibilities have been allocated or delegated, except as provided in ERISA
§405(a) and 405(c)(2)(A) or (B).  No action or responsibility will be
deemed to be a fiduciary action or responsibility except to the extent required
by ERISA.  To the extent permitted by law, the Company will indemnify
the Board of Directors, the Plan Administrator, each member of the EB Committee,
each member of the Retirement Committee, and their delegates, and any other
employee or former employee of the Company with duties under the Plan against
expenses (including any amount paid in settlement) reasonably incurred by him in
connection with any claims against him by reason of his conduct (except for his
willful misconduct) in the performance of his duties under the
Plan.

    

    9.110  Mailing and Lapse of
Payments.  All payments under the Plan will be delivered in
person or mailed to the last address of the Participant (or, in the case of the
death of the Participant, to that of any other person entitled to such payments
under the terms of the Plan) furnished pursuant to Section 9.150
below.  If the Plan Administrator cannot, by making a reasonably
diligent attempt by mail, locate either the Participant or his Beneficiary, as
the case may be, for a period of seven years, such Participant or Beneficiary
will be presumed dead.  If payment cannot be made alternately to the
estate of either and no surviving spouse, child, grandchild, parent, brother or
sister of the Participant or his Beneficiary are known to the Plan Administrator
or the Trustee or, if known, cannot with reasonable diligence be located, the
amount payable will be retained by the Trustee until the amount can be
distributed pursuant to the provisions of this Plan or of applicable
law.

    

    9.120  Non-Alienation.  No
right or benefit provided for in the Plan will be subject in any manner to
anticipation, alienation, sale, transfer, assignment, pledge, encumbrance
(including garnishment, attachment, execution or levy of any kind or charge) and
any attempt to anticipate, alienate, sell, transfer, assign, pledge, encumber or
charge the same will be void; provided, however, that the foregoing will not
apply to the creation, assignment, or recognition of a right to any benefit
payable with respect to a Participant pursuant to:

    

    
      	
              (a)

            	
              a
      federal income tax levy issued against the Participant by the Internal
      Revenue Service; or

            

    

    

    
      	
              (b)

            	
              a
      domestic relations order, which the Plan Administrator determines is a
      qualified domestic relations order under Code §414(p) and which requires
      that the order’s alternate payee (as defined in the said Code section)
      will be paid in a lump sum as soon as is practicable following the order’s
      issuance.

            

    

    

    
      
        
           

        

        
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    9.130  Notices and
Communications.  Each Participant will be responsible for
furnishing the Plan Administrator with his current address and the correct
current name and address of his Beneficiary.  All communications from
Participants must be in the manner from time to time prescribed by the Plan
Administrator and must be addressed or communicated (including telephonic
communications) to such entity or Company office as may be designated by the
Plan Administrator, and will be deemed to have been given to the Company when
received by such entity or Company office.  Each communication
directed to a Participant or Beneficiary must be in writing and may be delivered
in person, by accepted and approved electronic method, or by mail, in which
latter event it will be deemed to have been delivered and received by him when
so deposited in the United States Mail with postage prepaid addressed to the
Participant or Beneficiary at his last address of record with the office
designated by the Plan Administrator.

    

    9.140  Company Rights.  The
Company’s rights to discipline or discharge Employees or to exercise its rights
as to incidents and tenure of employment will not be affected in any manner by
reason of the existence of the Trust Agreement or the Plan, or any action taken
under them.

    

    9.150  Payments on Behalf of Incompetent
Participants or Beneficiaries.  In the event that the Plan
Administrator or his designee finds that any Participant or Beneficiary to whom
a benefit is payable under the terms of this Plan is unable to care for his
affairs because of illness or accident, is otherwise mentally or physically
incompetent, or unable to give a valid receipt, the Plan Administrator may cause
the payment becoming due to such Participant or Beneficiary to be paid to
another person for his benefit without responsibility on the part of the Plan
Administrator, the EB Committee, the Retirement Committee, the Company or the
Trustee to follow the application of such payment.  Any such payment
will be a payment for the account of the Participant or Beneficiary and will
operate as a complete discharge of all liability therefor under this Plan of the
Trustee, the Company, the Plan Administrator, the Retirement Committee and the
EB Committee, and their delegates.

    

    
      
        
           

        

        
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    ARTICLE
X:  CLAIMS PROCEDURES

    

    10.010  Requirement to File
Claim.  Any Participant or Beneficiary (“Claimant”) wishing a
distribution or withdrawal from the Plan (or who believes that he is entitled to
receive a benefit under the Plan, including one greater than that initially
reflected by the Plan) must present a claim, in such manner and pursuant to such
procedure established by the Plan Administrator, to the Retirement Committee or
the person or entity designated by the Retirement Committee.  A
claimant who fails to comply with the manner and procedure designated by the
Plan Administrator will be deemed not to have made such claim.

    

    The
Retirement Committee or its delegate will approve or deny in writing any claim
which has been so presented within ninety (90) days.  This 90-day
period may be extended for up to an additional 90 days in special circumstances,
at the discretion of the Retirement Committee or its delegate, provided that
written notice of the extension is furnished to the Claimant prior to the
termination of the initial period, indicating the special circumstances
requiring such extension of time and the date by which a final decision is
expected.  (From October 1, 2006 to January 1, 2009, the initial
decision making period and extension period shall each be 60 days).

    

    10.020  Notice of Claim
Denial.  A denial of a claim shall be written in a manner
calculated to be understood by the Claimant and shall include the specific
reason or reasons for the denial; specific references to pertinent Plan
provisions on which the denial is based; a description of any additional
material or information necessary for the Claimant to perfect the claim and an
explanation of why such material or information is necessary; and an explanation
of the Plan’s claims review procedures.

    

    10.030  Appeal of Claim
Denial.  A Claimant (or his or her duly authorized
representative) whose claim is denied may submit a written request for review to
the Plan Administrator or its delegate within 60 days after receipt of denial of
the claim.  The Claimant should submit in writing the reasons he
believes the denial to be in error, and should submit any additional evidence he
wishes the Plan Administrator to consider.  To assist in preparing his
appeal, the Claimant may request and receive reasonable access to and copies of
relevant documents, records and other information in the Company’s possession
free of charge.  Relevant documents, records and other information are
those that:

    

    
      	
              (1)

            	
              were
      relied on in making the
determination;

            

    

    
      	
              (2) 

            	
              were
      submitted, considered, or generated in the course of making the
      determination; or

            

    

    
      	
              (3)

            	
              demonstrate
      compliance with the Plan’s administrative processes or
      safeguards.

            

    

    

    10.040  Review of Appeal of Claim
Denial.  The Plan Administrator or its delegate shall notify
the Claimant of its decision on review within 60 days of receipt of a request
for review on appeal, subject to extension as described below.  The
decision on review shall be written in a manner calculated to be understood by
the Claimant and shall include specific reasons for the decision and specific
references to the pertinent Plan provisions on which the decision is
based.

    

    
      
        
           

        

        
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    The
60-day review period may be extended for up to an additional 60 days in special
circumstances, at the discretion of the Plan Administrator or its delegate,
provided that written notice of the extension is furnished to the Claimant prior
to the termination of the initial period, indicating the special circumstances
requiring such extension of time and the date by which a final decision is
expected.  (From October 1, 2006 to January 1, 2009, the initial
review period and extension shall each be 30 days.)

    

    10.050  Finality of Review on
Appeal.  Claimants shall not be entitled to challenge the Plan
Administrator’s (or its delegate’s) determinations in judicial or administrative
proceedings without first complying with the procedures in the
Plan.  The decisions made pursuant to Section 10.040 are final
and binding on Claimants and any other party; provided, however, that a Claimant
who has exhausted the administrative claims procedure set forth in the Plan may
seek review of his or her claim before a court of competent jurisdiction, in
accordance with ERISA.  Effective January 1, 2009, any such legal
action must be brought within twelve (12) months of the date the decision on
appeal was rendered.

    

    
      
        
           

        

        
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    ARTICLE
XI: AMENDMENT, MERGERS, TERMINATION, ETC.

    

    11.010  Amendment.  The
Board of Directors may, at any time and from time to time, amend this Plan in
whole or in part.  However, except as provided in Section 11.040,
no amendment may be made, the effect of which would be:

    

    
      	
              (a)

            	
              to
      cause any contributions paid to the Trustee to be used for or diverted to
      purposes other than providing benefits to the Participants and their
      Beneficiaries, and defraying reasonable expenses of administering the
      Plan, prior to satisfaction of all liabilities with respect to
      Participants and their
Beneficiaries;

            

    

    

    
      	
              (b)

            	
              to
      have any retroactive effect so as to deprive any Participant or
      Beneficiary of any benefit to which he would be entitled under this Plan
      if his employment were terminated immediately before such amendment;
      or

            

    

    

    
      	
              (c)

            	
              to
      increase the responsibilities or liabilities of the Trustee without its
      written consent.

            

    

    

    11.020  Transfer of Assets and
Liabilities.  The EB Committee at any time may, in its sole
discretion and without the consent of the Participant or his representative,
cause the Trustee to segregate part of the assets of the Trust Fund into one or
more separate trust funds and designate a group of Participants whose benefits
will be provided solely from each such segregated fund.  The Board of
Directors may, in its sole discretion without the consent of any Participant or
his representative, establish a separate plan to cover any such group of
Participants.  The initial terms and conditions of any such plan will
be identical to the extent such terms and conditions affect the rights of
Participants under the Plan.  Amendment to the Plan will not be
necessary to carry out the provisions of this Section.

    

    11.030  Merger Restriction. The
Company may, by action of the Board of Directors, merge this Plan, in whole or
in part, with any other plan sponsored by the Company or by an Affiliated
Company.  Notwithstanding any other provision in this Plan, the Plan
may not in whole or in part be merged or consolidated with, or have its assets
or liabilities transferred to any other plan, unless each affected Participant
in this Plan would (if the Plan then terminated) receive a benefit immediately
after the merger, consolidation, or transfer which is equal to or greater than
the benefit he would have been entitled to receive immediately before the
merger, consolidation, or transfer (if the Plan had then
terminated).

    

    11.040  Suspension of
Contributions.  The Company may, without amendment of the Plan
and without the consent of any Participant or representative of any Participant,
suspend contributions to the Plan as to all or certain Participants by action of
the Board of Directors.  In any event, the Company will suspend
contributions at any time when the amount of any contribution by it would be in
excess of the earnings, including retained earnings, of the
Company.  Upon a suspension, the EB Committee may, in its sole
discretion permit the Trust Fund to continue to be held by the Trustee, or may
segregate one or more parts of the Trust Fund, as provided in
Section 11.020.

    

    
      
        
           

        

        
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    11.050  Discontinuance of
Contributions.  The Company may, by action of the Board of
Directors, without amendment of the Plan and without the consent of any
Participant or representative of any Participant, discontinue such contributions
to the Plan as to all or certain Participants.

    

    11.060  Termination.  The
Company may terminate or partially terminate the Plan at any
time.  Upon such termination or partial termination of the Plan, or
upon a complete discontinuance of contributions pursuant to Section 11.050, the
Accounts of each affected Participant will remain fully vested and
nonforfeitable.  In the event of termination or partial termination
the EB Committee may, without the consent of any Participant or other person,
permit the Trustee to retain all or part of the Trust Fund or distribute all or
part of the Trust Fund to the Participants or their spouses or
Beneficiaries.

    

    
      
        
           

        

        
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    ARTICLE
XII:  STATUTORY LIMITATIONS

    

    12.010  Annual Limits of Participants’
Account Increases.  This Article is intended to conform the
Plan to the requirements of Code §415, and the regulations issued thereunder;
and will be administered and interpreted in accordance with such requirements
and regulations; and notwithstanding any provision of this Plan to the contrary,
no amount may be credited to any Participant’s Account which is in excess of the
limitation imposed by said §415, as from time to time amended or
replaced.  The amount allocated in each calendar year to any
Participant under the combination of defined contribution plans of all
Affiliated Companies cannot exceed such amount as established under Code
§415(d)(1) for the year, or 100% of the Participant’s total compensation, as
defined under Code §415.  For purposes of this limitation, the amount
allocated will be deemed to be comprised of:

    

    
      	
              (a)

            	
              Company
      Matching Contributions and Participant Pre-tax and After-tax Contributions
      made to the 401(k) Sub-Plan,

            

    

    

    
      	
              (b)

            	
              Company
      Retirement Contributions made to the Retirement Contribution Sub-Plan,
      and

            

    

    

    
      	
              (c) 

            	
              any
      other amounts treated as “annual additions” under Code
    §415.

            

    

    

    12.020  Combining Similar
Plans.  For purposes of this Article, all defined contribution
plans which are required to be aggregated under Code §414(b) will be so
aggregated and the limitation set forth herein will be applied to the total
“annual additions” (within the meaning of Code §415) allocated under all such
plans.  If the Code §415 limit would be exceeded as a result of such
aggregation, the reductions needed to satisfy the limit will be made first under
this Plan.

    

    
      
        
           

        

        
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    ARTICLE
XIII:  MISCELLANEOUS

    

    13.010  Benefits Payable only from Trust
Fund.  All benefits payable hereunder will be provided solely
from the trust, and the Company assumes no responsibility for the acts of
the Trustee, except as provided in the Trust Agreement.

    

    13.020  Requirement for
Release.  Any payment to any Participant or a Participant’s
present, future or former spouse or Beneficiary in accordance with the
provisions of this Plan will, to the extent thereof, be in full satisfaction of
all claims against the Plan, the Plan Administrator, the Trustee and the
Company, and the Trustee may require such Participant or Beneficiary, as a
condition precedent to such payment to execute a receipt and release to such
effect.

    

    13.030  Transfers of
Stock.  Transfers of Rockwell Collins common stock from the
Plan will be made as soon as practicable, but the Company, the Plan
Administrator, any other Named Fiduciary and the Trustee will not have any
responsibility for any decrease in the value of such common stock between the
Valuation Date used for determination of the number of shares to which the
Participant is entitled and the date of transfer by the transfer agent, nor
will the Participant receive any dividends, rights, options or warrants on such
stock other than those payable to stockholders of record as of a date on
or after the date of transfer.

    

    13.040  Qualification of the
Plan.  The Company intends for the Plan to be qualified and
approved by the Internal Revenue Service under Code §401(a) and for Company
Matching and Company Retirement Contributions to be deductible by the Company
for federal income tax purposes.  Continuation of the Plan is
contingent upon and subject to retaining such qualification and
approval.  Any modification or amendment of the Plan or the Trust
Agreement may be made retroactively by the Company, if necessary or appropriate,
to qualify or maintain the Plan and the Trust as a plan and trust meeting the
requirements of applicable provisions of the Code and of other federal and state
laws, as are now or in the future may be in effect.  No contribution
made by the Company may revert to the Company, unless such contribution was the
result of a good faith mistake of fact, in which case such contribution may be
returned to the Company within one (1) year to the extent permitted by all
applicable laws.

    

    13.050  Interpretation.  The
masculine gender will include the feminine and the singular will include the
plural unless the context clearly indicates otherwise.

    

    
      
        
           

        

        
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    13.060  Military
Service.  Notwithstanding any provision of this Plan to the
contrary, contributions, benefits and service credit with respect to Qualified
Military Service shall be provided in accordance with Code §
414(u).  If a Participant is reemployed after the conclusion of
Qualified Military Service within the time provided under USERRA, the
Participant will not be considered to have had an Employment Severance Date by
reason of such military service.  The Participant shall be permitted
to make additional Pre-tax Contributions or After-tax Contributions to the Plan
in an amount not exceeding the maximum amount the Participant would have been
permitted to contribute during the period of Qualified Military Service if he
had actually been employed by the Company during that period.  Make-up
contributions shall be permitted during the period that begins on the date of
reemployment and continues for five years or, if less, three times the period of
Qualified Military Service.  If the Participant elects to make such
make-up contributions, the Company shall make a corresponding Matching
Contribution equal to the Matching Contribution that would otherwise have
applied to such make-up contribution.  The Participant shall also
receive any Retirement Contributions that would have been made to his account
during the period of his Qualified Military Service.  For purposes of
determining such contributions, the Participant’s Base Compensation during the
Qualified Military Service shall be determined based on the amount the
Participant would have received but for the Qualified Military Service or, if
such amount is not reasonably certain, the Employee’s average rate of
compensation during the 12-month period immediately preceding the Qualified
Military Service.  Contributions shall not include any earnings the
Participant’s Accounts would otherwise have received during the Qualified
Military Service with respect to such contributions.

    

    A
Participant who dies while performing Qualified Military Service after January
1, 2007 shall be treated as if he had resumed employment on the day before his
death, solely for purposes of determining his vested percentage in his
Accounts.

    

    
      
        
           

        

        
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    Appendix
A

    

    PROCEDURES,
TERMS AND CONDITIONS OF LOANS

    

    Eligibility
for Loans.  The individuals
eligible to obtain loans from the Plan ("Borrowers") are limited
to:

    

    
      	
            	
              (1)

            	
              Employees,
      and

            

    

    

    
      	
            	
              (2)

            	
              non-Employees
      who are "parties in interest" (as defined in ERISA
  §3(14))

            

    

    

    who have
Plan Account balances.  An Employee who wishes to obtain a loan must
be employed on an active payroll of an Affiliated Company at the time of the
loan application.  A party in interest who is not an Employee will be
eligible to obtain a loan only if an agreement can be provided by the party’s
current employer to deduct and remit the required loan repayments to the Savings
Plan.

    

    Limitation
on Number and Minimum Amount of Loans.  Only two (2)
loans to a Borrower will be permitted to be outstanding from all Company
sponsored savings plans at any one time.  Each loan must be for a
minimum of One Thousand Dollars ($1,000.00).

    

    Maximum
Amount of Loan.
The amount which a Borrower will be permitted to borrow from the Plan is based
on the aggregate value of the Borrower’s Accounts, determined in accordance with
the Plan, and may not exceed the least of the amounts described in Section 6.050
of the Plan. The maximum amount of any loan will be further limited to ensure
that, after applying the appropriate interest rate and taking into account all
applicable deductions, the resulting periodic repayments will not exceed the
Borrower’s net earnings.  The deductions referred to in the preceding
sentence include statutory withholdings, deductions for employee benefits and
all Pre-tax
Contributions to the Plan, but exclude credit union, savings bond, charitable
contribution and other similar deductions.

    

    Loan
Applications.  Loan applications
by prospective Borrowers will be made via telephone or pursuant to and accepted
and approved method (i.e., via an application through the internet) to the Plan
Administrator or such third party administrator as may be designated by the Plan
Administrator (either of whom is hereafter referred to as the “Loan
Administrator”).  The Loan Administrator will then review the
telephonic application and determine eligibility for the loan.  If the
loan is approved, the Loan Administrator will prepare and forward to the
Borrower a letter notifying the Borrower of the approval, together with a Truth
in Lending Statement and a check for the loan amount, all in form approved by
the Plan Administrator.  The Borrower’s endorsement of the loan check
will be considered to be the Borrower’s agreement to the terms of the
loan.  Failure by the Borrower to endorse the check within thirty (30)
days after the date of the check will be deemed to be a withdrawal by the
Borrower of the loan application.

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    Loan
Initiation Fee. A
fee in the amount of Seventy-five Dollars ($75.00) will be assessed in
connection with the initiation of each loan.  This fee will be
deducted from the Borrower’s Plan Account at the same time that the loan is
approved and processed.

    

    Source of
Loan Funds.  Each loan will be
funded from the Borrower’s Investment Funds on a pro rata basis, based upon the
relative size of the balance of each such Fund, by withdrawing the required
amounts from the Plan Account(s) of the Borrower in the following
order:

     

    
      
        
          
            
              
                
                  
                    
                      	
                              First

                            	 
      	
                              —

                            	 
      	
                              from
      amounts in the Borrower’s Pre-tax Contribution Account attributable to his
      Basic Pre-tax Contributions;

                            
	 
      	 
      	 
      	 
      	 
      
	
                              Second

                            	 
      	
                              —

                            	 
      	
                              from
      amounts in the Borrower’s Pre-tax Contribution Account attributable to his
      Supplemental Pre-tax Contributions;

                            
	 
      	 
      	 
      	 
      	 
      
	
                              Third

                            	 
      	
                              —

                            	 
      	
                              from
      amounts in the Borrower’s Catch-up Contribution Account attributable to
      his Catch-up Contributions;

                            
	 
      	 
      	 
      	 
      	 
      
	
                              Fourth

                            	 
      	
                              —

                            	 
      	
                              from
      amounts in the Borrower’s After-tax Contribution Account attributable to
      his Basic After-tax Contributions;

                            
	 
      	 
      	 
      	 
      	 
      
	
                              Fifth

                            	 
      	
                              —

                            	 
      	
                              from
      amounts in the Borrower’s After-tax Contribution Account attributable to
      his Supplemental After-tax Contributions;

                            
	 
      	 
      	 
      	 
      	 
      
	
                              Sixth

                            	 
      	
                              —

                            	 
      	
                              from
      amounts in the Borrower’s Rollover Account attributable to his pre-tax
      rollover contributions;

                            
	 
      	 
      	 
      	 
      	 
      
	
                              Seventh

                            	 
      	
                              —

                            	 
      	
                              from
      amounts in the Borrower’s Rollover Account attributable to his after-tax
      rollover contributions;

                            
	 
      	 
      	 
      	 
      	 
      
	
                              Eighth

                            	 
      	
                              —

                            	 
      	
                              from
      amounts from that portion of the Borrower’s Company Match Account which is
      attributable to company contributions made to the predecessor to this
      plan;

                            
	 
      	 
      	 
      	 
      	 
      
	
                              Ninth

                            	 
      	
                              —

                            	 
      	
                              from
      amounts in the Borrower’s Rockwell Collins Stock Fund ESOP Account
      attributable to his ESOP
Contributions.

                            

                    

                  

                

              

            

          

        

      

    

     

    Determination
of Loan Interest Rate.  The interest rate
to be charged for loans will be one percent (1%) over the prime rate stated by
Reuters published on the last business day of each calendar month.

    

    Term of
Loans.  Loans will be
permitted for terms of 12, 24, 36, 48 or 60 months for loans other than those
for the purpose of purchasing a primary residence, which will be permitted for
terms up to 120 months.

    

    
      
        
           

        

        
          - ii
-

          
            

          

        

        
           

        

      

    

    

    Repayments.  Loan repayments
by Employees will be deducted from the Employee’s pay check each pay
period.  If a pay check is insufficient to cover the full amount of
the loan repayment, no deduction will be made, and the repayment will be
deducted from the Employee’s next pay check. Loan repayment schedules for
Borrowers who are not Employees will be developed on an individual basis, but
will parallel as closely as possible the loan repayment schedules for
Employees.

    

    Prepayments.  Prepayment of the
full unpaid balance or any portion of the unpaid balance of a loan may be made
by a Borrower at any time.

    

    Missed
Payments.  If any payment is
not made, interest will continue to accrue on such missed payment and subsequent
payments will be applied first to accrued and unpaid interest on the missed
payment and then to principal.  A notice will be mailed to the last
known address of the Borrower stating that if three (3) consecutive months of
payments are missed, the loan will be considered to be in default.

    

    Termination
of Employment.  If a Borrower who
is an Employee terminates employment or is on an unpaid Leave, or if a Borrower
who is not an Employee is no longer able to repay a loan through payroll
deductions, the Borrower may continue to make loan repayments by bank check,
cashier check, personal check, money order, or through electronic funds transfer
(EFT).  Such repayments to the Plan will be made through the Loan
Administrator at an address to be provided to the Borrower by the Loan
Administrator.

    

    Default.  A loan will be
considered to be in default after three (3) consecutive months of payments have
been missed during the term of the loan or when a Borrower revokes a payroll
deduction authorization.  In the event of such a default, a
distribution of the loan amount, including both unpaid principal and accrued but
unpaid interest, will be deemed to have occurred (as described in
§1.401(k)-1(d)(6)(ii) of the Treasury Regulations) and an information return
reflecting the tax consequences, if any, to the Borrower will be
issued.  Upon the occurrence of an event permitting actual
distribution of the Borrower’s Account pursuant to the provisions of Code
§401(k) (whether distribution of the Borrower’s entire Plan Account will
actually be made or will be deferred pursuant to applicable provisions of the
Plan), the unpaid balance of a defaulted loan will be charged off against the
Borrower’s Account.  If no distribution event has occurred, which
would otherwise permit payment to the Borrower under Code §401(k), the unpaid
balance of the loan will be retained in the Account until such time as payment
would be permitted under that Code section, at which time the unpaid balance of
the loan, including any accrued and unpaid interest, will be charged off against
the Borrower’s Account.

    

    
      
        
           

        

        
          - iii
-

          
            

          

        

        
           

        

      

    

    

    Appendix
B

    

    
      RESERVED

    

    

    
      
        
           

        

        
          - iv
-

          
            

          

        

        
           

        

      

    

    

    Appendix
C

    

    
      TOP-HEAVY
PLAN PROVISIONS

    

    

    In the
event that this Plan is or becomes a Top-Heavy Plan (as that term is defined and
described in this Appendix C, the following special provisions will become
applicable to the Plan and will supersede the comparable provisions contained
elsewhere in the Plan.

    

    
      C-I.   DEFINITIONS

    

    

    Solely
for purposes of this Appendix C, the following special definitions will be in
effect:

    

    C1.010  Aggregation Group means a
group of plans (including this Plan) maintained by one or more Affiliated
Companies in which a Key Employee is a participant or which is combined with
this Plan in order to meet the coverage and nondiscrimination requirements of
Code §§410 and 401(a)(4).  The Aggregation Group also includes
those plans other than this Plan which need not be aggregated with this Plan to
meet Code Requirements, but which are selected by the Company to be part of a
selective Aggregation Group including this Plan, if the Aggregation Group would
continue to meet the requirements of Code §§401(a)(4) and 410 with such
plans being taken into account.

    

    C1.020  Compensation means
compensation as described in Code §415(c)(3), including employer contributions
made pursuant to any salary reduction arrangement.

    

    C1.030  Determination Date means
the last day of the immediately preceding plan year or, in the case of the first
plan year of any plan, the last day of such plan year.

    

    C1.040  Employee means not only
an Employee as defined in Article I, but also any beneficiary of such
Employee.

    

    C1.050  Key Employee means each
Employee or former Employee who has, at any time during the five (5) year period
ending on the Determination Date, performed services for an Affiliated Company
and who is, at any time during the plan year ending on the Determination Date,
or was, during any one of the four plan years preceding the plan year ending on
the Determination Date, any one or more of the following:

    

    
      	
              (a)

            	
              an
      officer of the Company having annual compensation greater than fifty
      percent (50%) of the amount in effect under Code §415(b)(1)(A)
      for any plan year;

            

    

    

    
      	
              (b)

            	
              one
      of the ten (10) persons having annual compensation from all Affiliated
      Companies greater than the limitation in effect under
      Code §415(c)(1)(A) and owning (or considered as owning
      within the meaning of Code §318, as modified by Code
      §416(i)(B)(iii)), the largest interests in the
  Company;

            

    

    

    
      
        
           

        

        
          - v
-

          
            

          

        

        
           

        

      

    

    

    
      	
              (c)

            	
              any
      person owning (or considered as owning within the meaning of Code §318, as
      modified by Code §416(I)(B)(iii), more than five percent (5%) of the
      outstanding stock of the Company (or stock having more than five percent
      (5%) of the total combined voting power of all stock of the Company);
      or

            

    

    

    
      	
              (d)

            	
              any
      person who has annual compensation of more than the amount applicable for
      the year under Code §416(i)(1)(A)(3) and would be described in
      paragraph (3) above, if "one percent (1%)" was substituted for “five
      percent (5%)”.

            

    

    

    For
purposes of determining whether a person is an officer in subsection (a), in no
event will more than fifty (50) Employees or, if less than fifty (50)
Employees, the greater of three (3) Employees or ten percent (10%) of all
Employees, be considered Key Employees solely by reason of officer
status.  In addition, persons who are merely nominal officers will not
be treated as officers solely by reason of their titles.

    

    C1.060  Non-Key Employee means
any employee who is not a Key Employee.  Non-Key Employee also means
an employee who is a former Key Employee.

    

    C1.070  Top-Heavy Plan means a
qualified retirement plan, including this Plan if applicable, which is included
in, or which constitutes, an Aggregation Group under which, as of the
Determination Date, the sum of the present values of accrued benefits for all
Key Employees under all defined benefit plans in the Aggregation Group and the
aggregate of all accounts of Key Employees under all defined contribution plans
in the Aggregation Group exceeds sixty percent (60%) of the sum of the
present values of accrued benefits under all such defined benefit plans and of
all accounts under all such defined contribution plans for all participants
under such plans.

    

    C-II.   APPLICATION
OF THIS APPENDIX

    

    In the
event that this Plan is or becomes a Top-Heavy Plan, the provisions of this
Appendix, where aggregated with each other defined contribution plan in the
Aggregation Group in which a Key Employee is a participant, will be applied as
follows:

    

    C2.010  Minimum Contributions.  The following
special provisions regarding contributions will become applicable and will
supersede the Company contribution provisions contained elsewhere in this
Plan.  In such case, the Plan, where aggregated with each other
defined contribution plan in the Aggregation Group in which a Key Employee is a
participant, will provide a minimum allocation to the account of each
Participant who is not a Key Employee for each Plan Year to which these rules
apply equal to the lesser of:

    

    
      	
              (a)

            	
              four
      percent (4%) of the Participant’s Compensation,
  or

            

    

    

    
      	
              (b)

            	
              the
      highest percentage of contribution made for the Plan Year to a Participant
      who is a Key Employee for such Plan
Year.

            

    

    

    
      
        
           

        

        
          - vi
-

          
            

          

        

        
           

        

      

    

    

    C2.020  Vesting.  A Participant’s
nonforfeitable right to his Company Match and Company Retirement Contribution
Accounts will not be less than the amount determined pursuant to the following
schedule:

    

    
      
        
          
            
              
                	
                        Years
      of Service

                      	 	
                        Vested Interest

                      	 
	 
      	 	 	 
	
                        Less
      than two

                      	 	 	0	%
	
                        Two
      but less than three

                      	 	 	20	%
	
                        Three
      or more

                      	 	 	100	%

              

            

          

        

      

    

    

    If the
Plan ceases to be a Top-Heavy Plan, the vesting schedule set forth in Section
5.010(c) will again become applicable; provided that a Participant’s
nonforfeitable right to his Company Match and Retirement Contribution Accounts
will not be less than his nonforfeitable right to his balance in those Accounts
immediately before the Plan ceased to be a Top-Heavy Plan.

    

    C2.030  Maximum Compensation.  For any Plan Year
in which the Plan is a Top-Heavy Plan, only that portion of a
Participant’s Base Compensation that does not exceed the sum as established for
the year pursuant to Code §401(a)(17) will be taken into account for purposes of
determining benefits under the Plan; provided, however, that such amount
will be automatically adjusted as prescribed by the Secretary of the
Treasury.

    

    
      
        
           

        

        
          - vii
-

          
            

          

        

        
           

        

      

    

    

    Appendix
D

    

    EMPLOYEE
STOCK OWNERSHIP PLAN

    

    The
purpose of this Appendix D is to document the conversion of the Rockwell Collins
Stock Fund to a separate employee stock ownership plan and to designate it as
such.  In addition, this Appendix D sets forth the provisions
governing the operation of the said ESOP.  The provisions of this
Appendix, as they relate to the converted Stock Fund, supersede any provisions
of the Plan to the contrary.  Notwithstanding the above, the
conversion of the said Stock Fund and its designation as an ESOP is intended to
create a separate plan.  Assets attributable to the ESOP, however,
will continue to be assets of the Plan and will be available for the payment of
all benefits under the Plan.

    

    
      D–I.   DEFINITIONS

    

    

    The
following definitions will be in effect and applicable to the ESOP created by
conversion
of the Rockwell Collins Stock Fund into an employee stock ownership
plan:

    

    D1.010  Rockwell Collins
Stock Fund ESOP means the employee stock ownership plan (as that term is
defined in §4975(e)(7) of the Code), into which the Rockwell Collins Stock Fund
was converted on the ESOP Effective Date.

    

    D1.020  Rockwell Collins
Stock Fund ESOP Account means any portion of a Participant’s Plan Account
which is invested in  the Rockwell Collins Stock Fund
ESOP.

    

    D1.025 ESOP Contributions
means the amount contributed by a Participant to the Plan pursuant to the
Participant’s elections under this Appendix D.

    

    D1.030  ESOP Effective
Date means November 2, 2004.

    

    D1.040  Non-ESOP
Account means an Account that is not an Rockwell Collins Stock Fund ESOP
Account.

    

    D–II.   ESOP
ACCOUNTS

    

    D2.010  General.  As
of the ESOP Effective Date, the portion of a Participant’s interest in the
Rockwell Collins Stock Fund which consists of common stock of the Company is
hereby designated as a separate ESOP and, while in the said Rockwell Collins
Stock Fund ESOP, will continue to be invested primarily in stock of the Company
which meets the definition of an “employer security” under §409(l) of the
Code.  At that time and from time to time thereafter, the Trustee will
establish and maintain, if applicable, for each Participant a Rockwell Collins
Stock Fund ESOP Account, consisting of that portion of the Participant’s
interest in the Plan which is invested in the such Rockwell Collins Stock Fund
and is attributable to the Participant’s Pre-Tax and After-tax Contributions,
ESOP Contributions, Rollover Contributions, Transfer Contributions, Company
Matching and Company Retirement Contributions.

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    It is
specifically understood and provided that, other than cash and/or cash
equivalents, the Rockwell Collins Stock Fund ESOP Account under this Plan will
at all times be invested primarily in the Company’s common stock and in other
stock of the Company, as such common stock and other stock may be deemed to be
“employer securities” pursuant to §409(l) of the Code.  It is further
understood and provided that the above-described Rockwell Collins Stock Fund
ESOP Accounts are established for bookkeeping purposes only and will not be
segregated from the other assets of the Plan.

    

    D2.020  Section 401(m) Discrimination
Testing.  The provisions of Section 2.020 and 2.030 will be
applied separately to Contributions which are invested in the Rockwell Collins
Stock Fund ESOP Account, as if those Contributions were made under a separate
plan.

    

    D2.030  Transfers between ESOP and Non-ESOP
Accounts.   Participants will be permitted to elect
transfers of assets involving their Rockwell Collins Stock Fund ESOP Accounts,
but such transfers will at all times be subject to the provisions and
limitations, respectively, of Sections 4.030 of the Plan.   This
Section of this Appendix D, when administered in conjunction with the provisions
of the said Sections of the Plan, is intended to comply in all respects with the
diversification and other requirements of §§401(a)(28) and 404(k) of the
Code.

    

    D-III.   PASS-THROUGH
DIVIDENDS AND VOTING RIGHTS

    

    D3.010  Pass-through of Dividends Paid on
Company Stock.   Dividends paid by the Company with
respect to shares of common stock of the Company which are held in a
Participant’s Rockwell Collins Stock Fund ESOP Account shall, at the election of
the Participant (or his Beneficiary), be either paid in cash to such Participant
(or Beneficiary) as soon as practicable following the payment date for such
dividend or reinvested in the Rockwell Collins Stock Fund ESOP.  Such
elections shall be made in accordance with procedures established by the Plan
Administrator or his delegate.  Cash payments are subject to a ten
dollar ($10.00) minimum.

    

    D3.020  Pass-through of Dividends Paid on
Company Stock.   In the absence of an election duly made by a
Participant (or Beneficiary) pursuant to the preceding Section to receive such
dividends directly in cash, dividends paid on the common stock of the Company
will be reinvested in a Participant’s Rockwell Collins Stock Fund ESOP
Account.  If a Participant should make such an election for a cash
distribution, then such dividends will be temporarily invested by the Trustee,
pending such payment.   A distribution of dividends hereunder
will not include any earnings or gains on the dividend amount from the time such
dividends are declared to the time they are paid out in cash to a Participant
(or Beneficiary), but such a distribution of dividends may be reduced by any
investment losses on the dividend amount from the time such dividends are
declared to the time they are paid to the Participant (or
Beneficiary).

    

    
      
        
           

        

        
          - ii
-

          
            

          

        

        
           

        

      

    

    

    D3.020  Pass-through of Voting Rights with
Respect to Company Stock.   The Trustee exercises all
voting rights with respect to Company stock held by the Plan, but must exercise
those rights in accordance with the instructions of Participants, to the extent
of their ESOP Accounts.  The Trustee will establish procedures for
distributing proxy material to, and soliciting voting instructions from,
Participants on all corporate matters which are subject to vote of the Company’s
shareholders.  The Trustee must vote the Plan’s stock in accordance
with the Participant’s instructions.  Any shares with respect to which
no instructions are received must be voted in the same proportions as shares
with respect to which the Trustee does receive instructions.

    

    
      
        
           

        

        
          - iii
-

          
            

          

        

        
           

        

      

    

     

    
      Appendix
E

    

    

    
      	
              1.

            	
              Rockwell
      Collins Simulation & Training Solutions
  (STS)

            

    

     

    
      	
              2.

            	
              The
      following locations of Rockwell Collins Services
  Company:

            

    

     

    
      	
               
      

            	
              ·

            	
              Barksdale
      AFB, LA

            

    

    
      	
               
      

            	
              ·

            	
              Dyess
      AFB, TX

            

    

    
      	
               
      

            	
              ·

            	
              Ellsworth
      AFB, SD

            

    

    
      	
               
      

            	
              ·

            	
              Hurlburt
      AFB, WA

            

    

    
      	
               
      

            	
              ·

            	
              McChord
      AFB, WA

            

    

    
      	
               
      

            	
              ·

            	
              Pope
      AFB, NC

            

    

    
      	
               
      

            	
              ·

            	
              Sheppard
      AFB, TX

            

    

    
      	
               
      

            	
              ·

            	
              Minot
      AFB, ND

            

    

    
      	
               
      

            	
              ·

            	
              Robins
      AFB, GAExhibit
4.8

       

      AMENDMENT
TO THE

      ROCKWELL
COLLINS RETIREMENT SAVINGS PLAN

       

      (As
Amended and Restated Effective June 30, 2001)

       

      The Plan
is hereby amended, effective January 1, 2008 (or as otherwise provided herein),
in the following respects:

       

      1.         Section
1.070 is amended in its entirety, to read as follows:

       

      1.070   Base
Compensation means a Participant's compensation, not in excess of such
sum as may be established pursuant to Code §401(a)(17) for any calendar
year, including as such compensation:  (a) lump sum merit awards;
(b), any amount which would be paid to the Participant absent elections under
Sections 2.020(a) and 2.030(a); or (c) any amount which would be paid to
the Participant absent an election to make elective employee contributions
pursuant to a qualified cash or deferred arrangement under a cafeteria plan
meeting the requirements of Code §125, and (d) effective June 7, 2008, overtime
pay.  Base Compensation does not include compensation for extended
workweek compensation, night work or other premium pay (other than overtime
pay), bonuses, lump sum payments of severance compensation, any form of
extra, contingent or supplementary compensation (including, but not limited to,
lump sum payments for unused vacation), or compensation on the salaried
payroll.  

       

      Effective
January 1, 2008, Pre-tax Contributions may be made only from Base Compensation
that constitutes “compensation” for purposes of Code §
415.  Compensation paid after termination of employment shall not be
treated as “Base Compensation” unless it is regular compensation for services
performed during employment, and is paid by the later of 2 1⁄2 months after
severance of employment or the end of the plan year in which such severance
occurred.

       

      2.         Section
1.400 is amended to read as follows, effective October 1, 2006:

       

      1.400  Participating
Unit means one of the following collective bargaining
units:  International Brotherhood of Electrical Workers, Local Union
No. 1362 - Cedar Rapids, Iowa; International Brotherhood of Electrical
Workers, Local Union No. 1634 – Coralville, Iowa; and International Union
of Electronic, Electrical, Salaried, Machine and Furniture Workers, Local Union
No. 787 - Shiloh, Texas.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      3.         Section
2.010 is amended, effective August 1, 2008, by adding new paragraphs (b) and (c)
thereto, to read as follows:

       

      (b)           Automatic
Enrollment.  Effective August 1, 2008, an Eligible Employee
(including Eligible Employees hired before August 1, 2008) will be deemed to
have elected to contribute 1% of his Base Compensation on a pre-tax basis as a
Pre-Tax Contribution, unless he has made a positive election not to participate
(or to participate at a different level, as provided under Sections
2.020.   An Eligible Employee’s automatic enrollment under this
provision shall take effect 45 to 60 days after he first becomes eligible to
participate in this Plan (or in the case of Eligible Employees whose Eligible
Employment Date was prior to August 1, 2008, on August 1, 2008), unless he has
made a positive election not to participate, or to participate at a different
level, by that date.  The Participant will be provided a notice of his
automatic enrollment at least 30 days prior to the date such automatic
enrollment will take effect.

       

      (c)           Automatic Annual Increase in
Contribution Percentage.  On the first day of May in each year,
beginning May 1, 2009, an Eligible Employee who has elected (or been deemed to
have elected) to contribute less than 6% of his Base Compensation as Basic
Pre-Tax or Basic After-Tax Contributions shall be deemed to have elected to
increase his Pre-tax Contributions by 1% of Base Compensation, unless he
affirmatively elects not to have such automatic increase apply.  This
annual increase shall apply to both affirmative elections under Section 2.020,
deemed initial elections under Section 2.010(b), and deemed elections resulting
from the application of this paragraph (c).  Notwithstanding the
foregoing, however, in no case will this paragraph (c) apply to increase a
participant’s total Pre-tax and After-Tax Contributions to greater than 6% of
Base Compensation.

       

      4.         Section
2.020 is amended, effective June 7, 2008, by replacing the phrase “1% to 15%”
with the phrase “1% to 6%” each time that phrase occurs, and by adding the
following paragraph at the end thereof:

       

      The total
amount elected to be deferred or deducted then made as Basic Pre-Tax and Basic
After-tax Contributions may not exceed 6% of the Participant’s Base
Compensation.  Any deferrals or deductions over this amount will be
treated as Supplemental Pre-Tax or Supplemental After-tax Contributions, as
applicable.

       

      5.         Section
2.030 is amended, effective June 7, 2008,  to read as
follows:

       

      2.030    Supplemental
Contributions - General.  A Participant who has made the
elections and/or authorizations described in Section 2.020 will also be
permitted to take either or both of the actions described in subsections (a) and
(b) below:

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

      (a)      elect
to defer receipt of an amount equal to 7% through 50% of his regular Base
Compensation (7% through 20% if the Participant is a Highly Compensated
Employee, and to instead have that amount paid to the Plan as a Supplemental
Pre-Tax Contribution to his Pre-Tax Contribution Account (all such deferrals to
be elected in whole percentages); or

       

      (b)      authorize
having deducted (such deduction to be authorized in whole percentages) from his
regular Base Compensation 7% through 50% and then have the amount of such
deduction (as adjusted for all applicable taxes due on that amount) paid to the
Plan as a Supplemental After Tax Contribution to his After Tax Contribution
Account:

       

      The
percentages elected to be deferred or deducted then made as Supplemental Pre-Tax
and After Tax Contributions, when combined with the Participant’s Basic Pre-Tax
and After Tax Contributions, may not exceed 50% of the Participant’s Base
Compensation.

       

      6.           Section
2.060 is amended in its entirety, effective June 7, 2008, to read as
follows:

       

      2.060 Matching Contribution Formula -
General.  The Company will contribute to the Plan on behalf of
each Participant who has met the service requirement set forth in Section
2.070(a), and out of its current or accumulated profits, Company Matching
Contributions equal to 50% of such Participant’s Basic Pre-Tax Contributions and
Basic After-tax Contributions made pursuant to Sections 2.010 and/or
2.020.  Such Company Matching Contributions will be made in the form
and subject to the limitations set forth in Section 2.070.

       

      7.           A
new Section 2.070 is added, effective January 1, 2008 to read as
follows:

       

                     2.070
Rules Concerning Matching Contributions.

       

      (a)   Company
Matching Contributions will not be made by the Company until a Participant has
completed twelve (12) months of employment with the Company or an affiliated
Company.

       

      (b)   No
Company Matching Contributions will be made with respect to a Participant’s
Supplemental Pre-tax Contributions or Catch-Up Contributions, or with respect to
any Supplemental After tax Contributions or Rollover Contributions or Transfer
Contributions.

       

      (c)     Company
Matching Contributions will be made in the form of Rockwell Collins common
stock, but may be made, in the discretion of the Board of Directors, in
cash or in any combination of cash and Rockwell common
stock.  Rockwell common stock which is contributed will be valued at
the New York Stock Exchange closing price on the Valuation Date immediately
preceding the date on which the contribution is made.

       

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

       

      (d)     Company
Matching Contributions, whether they are made in the form of Rockwell Collins
common stock or cash, will be directed to the Rockwell Collins Stock Fund when
they are contributed and, unless distributed to the Participant pursuant to
Section 6.020 or transferred to an Investment Fund pursuant to the Participant’s
election, will remain in the Rockwell Collins Stock Fund, along with any
dividends or other earnings on such common stock or cash.

       

      8.           Section
4.010(c) is amended by replacing the final portion thereof, beginning with
“provided however,” with the following language:

       

      provided
however, if it is determined by the Plan Administrator that an investment
election made by a Participant is invalid or defective, or if the Participant
has failed to make an investment election, the Participant will be deemed to
have elected to invest future contributions in the appropriate Freedom Fund
which is applicable to his age (e.g., such a Participant who will be age 65 in
calendar year 2025 will be deemed to have directed investment in the 2025
Freedom Fund).”

       

      9.           Section
5.040 is amended by inserting the phrase “valued as of the Valuation Date on
which the distribution is processed,” immediately prior to the phrase “pursuant
to subsections (a) and (b)”, and by deleting the second sentence of paragraph
(a).

       

      10.           Section
6.030(c)(3) is amended by replacing the phrase “twelve (12) months” with the
phrase “six (6) months.”

       

      11.           Section
6.040 is deleted in its entirety, effective July 1, 2001.

      
        
           

        

        
          4

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