Document:

Exhibit 10.1

 

SECOND AMENDMENT

TO EMPLOYMENT AGREEMENT

 

This Second Amendment to Employment Agreement is
dated April 6, 2009 and effective immediately amends the Employment
Agreement with an effective date of November 10, 2005 (hereinafter the
“Original Agreement”) by and between Peter R. Ingram (hereinafter the
“Employee”) and Hawaiian Airlines, Inc., a Hawaii corporation (hereinafter
the “Company”) as amended by the First Amendment to Employment Agreement dated November 2008
(hereinafter “First Amendment”).

 

For due consideration, the receipt and adequacy of
which are hereby acknowledged, the parties hereby agree and acknowledge that:

 

Paragraph
8., PAYMENTS UPON TERMINATION WITHOUT CAUSE IN EXCHANGE FOR AGREEMENT TO
WAIVE ALL CLAIMS, of the Original Agreement as amended by the First
Amendment shall be amended in relevant part to read as follows (the new, added
language is underscored for identification and emphasis):

 

a.             If Company terminates Employee’s at
will employment without Cause, in addition to Accrued Obligations, Employee
shall be entitled to the following payments in exchange for a valid release and
waiver of all claims thorough the Termination Date that Employee may have at
that time against Company or related persons or entities (“Waiver of All Claims”):
Company shall pay to Employee an amount equal to Employee’s Base Salary and
medical/dental premiums for one year (“the Settlement Sum”). The Settlement Sum
shall be paid in a lump sum, less applicable withholdings, on the Termination
Date. Company shall provide all information for continuation of fringe benefits
to the extent required by law.

 

Additionally,
Employee shall receive the prorated value of any Performance Bonus (hereinafter
“Bonus”) to which Employee would have been entitled in the current year. The pro-rated
Bonus is defined as an amount equal to the Bonus the individual would have
received for the year in which the employment is terminated assuming that the
individual’s personal performance score had been rated as a ‘Met Expectations’
times the fraction of the year that the individual was employed by the Company.
The corporate performance portion of the Bonus shall be based upon the
Company’s corporate performance score for the year of termination times the
fraction of such year that the individual was employed by the Company. Both the
corporate performance and the individual performance portions of the pro-rated
Bonus will otherwise be calculated and paid at the same time (i.e. generally
during the first quarter of the year following the date of termination), be
subject to the same conditions (including EBITDAR conditions and clawback
conditions) and be paid in the same form of consideration (i.e., cash and/or
equity) as the bonuses are paid to other Bonus eligible employees, except that,
in the Compensation Committee’s sole discretion, all of the Bonus may be paid
in cash in lieu of equity.

 

All
other terms and conditions of the Original Agreement shall remain in full force
and effect.

 

 

IN
WITNESS HEREOF, the parties hereto have caused this Second Amendment to
Employment Agreement to be executed as of the date written above.

 

	
  COMPANY

  	
   

  	
  EMPLOYEE

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Mark B. Dunkerley

  	
   

  	
  By:

  	
  /s/ Peter R. Ingram

  
	
   

  	
  Mark B. Dunkerley

  	
   

  	
   

  	
  Peter R. Ingram

  
	
   

  	
  President & Chief Executive Officer

  	
   

  	
   

  	
   

  
	
   

  	
  Hawaiian Airlines, Inc.Exhibit 10.2

 

FIRST AMENDMENT

TO EMPLOYMENT AGREEMENT

 

This First Amendment to Employment Agreement is
dated April 6, 2009 and effective immediately amends the Employment
Agreement with an effective date of July 11, 2005 (hereinafter the “Original
Agreement”) by and between Barbara Falvey (hereinafter the “Employee”) and
Hawaiian Airlines, Inc., a Hawaii corporation (hereinafter the “Company”).

 

For due consideration, the receipt and adequacy of
which are hereby acknowledged, the parties hereby agree and acknowledge that:

 

Paragraph
8., PAYMENTS UPON TERMINATION WITHOUT CAUSE IN EXCHANGE FOR AGREEMENT TO
WAIVE ALL CLAIMS, of the Original Agreement shall be amended in relevant
part to read as follows (the new, added language is underscored for
identification and emphasis):

 

a.             If Company terminates Employee’s at
will employment without Cause, in addition to Accrued Obligations, Employee
shall be entitled to the following payments in exchange for a valid release and
waiver of all claims thorough the Termination Date that Employee may have at
that time against Company or related persons or entities (“Waiver of All Claims”):
Company shall pay to Employee an amount equal to Employee’s Base Salary and
medical/dental premiums for one year (“the Settlement Sum”). The Settlement Sum
shall be paid in a lump sum, less applicable withholdings, on the Termination
Date. Company shall provide all information for continuation of fringe benefits
to the extent required by law.

 

Additionally,
Employee shall receive the prorated value of any Performance Bonus (hereinafter
“Bonus”) to which Employee would have been entitled in the current year. The
pro-rated Bonus is defined as an amount equal to the Bonus the individual would
have received for the year in which the employment is terminated assuming that
the individual’s personal performance score had been rated as a ‘Met
Expectations’ times the fraction of the year that the individual was employed
by the Company. The corporate performance portion of the Bonus shall be based
upon the Company’s corporate performance score for the year of termination
times the fraction of such year that the individual was employed by the
Company. Both the corporate performance and the individual performance portions
of the pro-rated Bonus will otherwise be calculated and paid at the same time
(i.e. generally during the first quarter of the year following the date of
termination), be subject to the same conditions (including EBITDAR conditions
and clawback conditions) and be paid in the same form of consideration (i.e.,
cash and/or equity) as the bonuses are paid to other Bonus eligible employees,
except that, in the Compensation Committee’s sole discretion, all of the Bonus
may be paid in cash in lieu of equity.

 

All
other terms and conditions of the Original Agreement shall remain in full force
and effect.

 

IN WITNESS HEREOF, the parties hereto have caused
this First Amendment to Employment Agreement to be executed as of the date
written above.

 

	
  COMPANY

  	
   

  	
  EMPLOYEE

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/
  Mark B. Dunkerley

  	
   

  	
  By:

  	
  /s/
  Barbara Falvey

  
	
   

  	
  Mark
  B. Dunkerley

  	
   

  	
   

  	
  Barbara
  Falvey

  
	
   

  	
  President
  & Chief Executive OfficerExhibit
10.3

 

EXECUTIVE SEVERANCE AGREEMENT

 

THIS EXECUTIVE SEVERANCE AGREEMENT dated April 15,
2009 (“Agreement”), by and between HAWAIIAN AIRLINES, INC., a Hawaii
corporation (the “Company”) headquartered 3375 Koapaka St., Ste. G350, Honolulu,
HI 96819, and DAVID J. OSBORNE (the “Executive”), a Hawaii resident whose
mailing address is 1200 Queen Emma Street, Honolulu, Hawaii 96813.

 

WHEREAS, the Board of
Directors of the Company (the “Board”) has determined that Executive plays a
critical role in the operations of the Company; and

 

WHEREAS, the Board has
determined that appropriate steps should be taken to reinforce and encourage
the continued employment and dedication of the Executive;

 

WHEREAS, Executive has an
existing Executive Employment Agreement for a term of two years dated April 5,
2005 and an effective date of May 23, 2005 (Attached as Attachment A) that
was subsequently modified by a letter dated February 12, 2007 extending
its term an additional two years signed by Mark B. Dunkerley (collectively “Prior
Agreement”) which shall be terminated effective upon the execution of, and
superseded by, the Agreement;

 

NOW, THEREFORE, as an
inducement for and in consideration of the Executive remaining in its employ, the
Company agrees that the Executive shall receive the severance benefits and
other consideration set forth in this Agreement in the event the Executive’s
employment with the Company is terminated under the circumstances described
below.

 

1.                                      Termination of Prior Agreement; Not an Employment Contract.   In exchange for the good and valuable consideration
detailed below, the Executive agrees to terminate his Prior Agreement effective
immediately upon the full execution of this Agreement, and the Executive
acknowledges that this Agreement does not constitute a contract of employment
or impose on the Company any obligation to retain the Executive as an employee
and that this Agreement does not prevent the Executive from terminating his
employment. Executive understands and acknowledges that he is an employee-at-will
with an open term of employment and that either he or the Company may terminate
the employment relationship between them at any time and for any reason.

 

2.                                      Compensation and Fringe Benefits.  
The termination of the Prior Agreement does not affect, however, Executive’s
reporting relationship to the President and CEO or any of his rights, which
shall continue unabated with respect to Executive’s base salary, performance
bonus, stock options, long term incentive plans, fringe benefits (including
without limitation travel benefits, business expenses, vacations, sick leave), or
his death or disability as stated in the Prior Agreement except to the extent
they have been completed or expired, or have subsequently been modified upon
agreement by Executive and the Company. Executive shall also be entitled in all
other respects to the benefits commensurate with his position as a senior
executive under Company policy as stated in the Summary of Executive Benefits (attached
as Attachment B). Additionally, the Company will pay up to $2,500.00 per month
for Executive’s housing on Oahu subject to change upon periodic review.

 

 

3.                                      Severance Benefits Upon Termination Without Cause.   In the event the employment of the Executive is
terminated by the Company for a reason other than for Cause (as defined below),
then the Executive shall be entitled to the following payments and benefits in
exchange for a valid release and waiver of all claims through the date of
termination that Executive may have at that time against the Company or related
persons or entities:

 

3.1                             The Company shall pay
severance benefits to the Executive within 30 days after the Termination Date (as
defined below) a lump sum payment (less applicable federal, state, and local
taxes and other withholdings required by law), equal to (i) twelve (12) months
of his then current base salary and (ii) his post-termination medical and
dental premiums for one year. Additionally, Executive will be paid the prorated
value of any Performance Bonus to which the Executive would have been entitled
in the then current year but for the termination.*

 

3.2                             The Executive agrees that
after the Termination Date, but prior to payment of the severance benefits
specified above in Section 3.1, he shall execute a release, based on the
Company’s standard form separation agreement and release, of any and all claims
he may have against the Company and its officers, employees, directors, parents
and affiliates. Executive understands and agrees that the payment of the
severance benefits called for by this Section 2 is contingent on his
execution and delivery of the previously described release of claims.

 

4.                                      Sole Remedy.   The payment to
the Executive of the amounts payable under Section 3.1 shall constitute
the sole remedy of the Executive in the event of a termination of the Executive’s
employment by the Company that results in payment of benefits under Section 3.

 

5.                                      Definitions.   For
purposes of this Agreement, the following terms shall have the following
meanings:

 

5.1                               Cause.   “Cause” shall mean a good faith finding by the
Company of any of the following: (a) repeated neglect by Executive of his
employment duties, Executive’s repeated material lack of diligence and
attention in performing his employment duties, or Executive’s repeated failure
to implement or adhere to Company policies; (b) conduct of a criminal
nature that may have an adverse impact on the Company’s reputation in the
community; (c) fraudulent conduct in connection with the business affairs
of the Company, regardless of whether said conduct is designed to defraud the
Company or others; (d) conduct at any time or place which is detrimental
to the Company’s reputation and/or goodwill among its customers and/or the
community; (e) conduct in violation of the Company’s and/or its parent
company’s corporate

 

*
Pro-rated bonus means an amount equal to the bonus the individual would have
received for the year in which the employment is terminated assuming that the
individual’s personal performance score had been rated as a ‘Met Expectations’ times
the fraction of the year that the individual was employed by the Company. The
corporate performance portion of the bonus shall be based upon the Company’s
corporate performance score for the year of termination times the fraction of
such year that the individual was employed by the Company. Both the corporate
performance and the individual performance portions of the pro-rated bonus will
otherwise be calculated and paid at the same time (i.e. generally during the
first quarter of the year following the date of termination), be subject to the
same conditions (including EBITDAR conditions and clawback conditions) and be
paid in the same form of consideration (i.e., cash and/or equity) as the
bonuses are paid to other bonus eligible employees, except that, in the
Compensation Committee’s sole discretion, all of the bonus may be paid in cash
in lieu of equity

 

2

 

compliance rules, practices, procedures and
ethical guidelines; (f) material violation of the Company’s House Rules, a
copy of which has been provided to Executive by the Company.

 

5.2                               Termination
Date.   “Termination
Date” shall mean the Executive’s last day on the payroll of the Company.

 

6.                                      Miscellaneous.

 

6.1                               Notices.   Any
notices delivered under this Agreement shall be deemed duly delivered four (4) business
days after it is sent by registered or certified mail, return receipt requested,
postage prepaid, or one business day after it is sent for next-business day
delivery via a reputable nationwide overnight courier service, in each case to
the address of the recipient set forth in the introductory paragraph hereto. Either
party may change the address to which notices are to be delivered by giving
notice of such change to the other party. All notices to the Company shall also
be addressed to the attention of the President of the Company.

 

6.2                               Pronouns.   Whenever
the context may require, any pronouns used in this Agreement shall include the
corresponding masculine, feminine or neuter forms, and the singular forms of
nouns and pronouns shall include the plural, and vice versa.

 

6.3                               Entire Agreement.   This Agreement
constitutes the entire agreement between the parties and supersedes all prior
agreements and understandings, whether written or oral, relating to the subject
matter of this Agreement.

 

6.4                               Amendment.   This Agreement may be amended or modified only by a
written instrument executed by both the Company and the Executive.

 

6.5                               Governing Law.  
This Agreement shall be governed by and construed in accordance with
the laws of the State of Hawaii. Any action, suit or other legal arising under
or relating to any provision of this Agreement shall be commenced only in a
court of the State of Hawaii (or, if appropriate, a federal court located
within the State of Hawaii), and the Company and the Executive each consents to
the jurisdiction of such a court. The Company and the Executive each hereby
irrevocably waive any right to a trial by jury in any action, suit or other
legal proceeding arising under or relating to any provision of this Agreement.

 

6.6                               Successors and Assigns.   This Agreement
shall be binding upon and inure to the benefit of both parties and their
respective successors and assigns, including any corporation with which or into
which the Company may be merged or which may succeed to its assets or business,
provided, however, that the obligations of the Executive are personal and shall
not be assigned by him or her.

 

6.7                               Waivers.   No delay or
omission by the Company in exercising any right under this Agreement shall
operate as a waiver of that or any other right. A waiver or consent given by
the Company on any one occasion shall be effective only in that instance and
shall not be construed as a bar or waiver of any right on any other occasion.

 

3

 

6.8                               Captions.   The captions of
the sections of this Agreement are for convenience of reference only and in no
way define, limit or affect the scope or substance of any section of this
Agreement.

 

6.9                               Severability.   In case any
provision of this Agreement shall be invalid, illegal or otherwise
unenforceable, the validity, legality and enforceability of the remaining
provisions shall in no way be affected or impaired thereby.

 

THE EXECUTIVE ACKNOWLEDGES
THAT HE HAS CAREFULLY READ THIS AGREEMENT AND UNDERSTANDS AND AGREES TO ALL OF
THE PROVISIONS IN THIS AGREEMENT.

 

IN WITNESS WHEREOF, the parties hereto have
executed this Agreement as of the day and year set forth above.

 

	
   

  	
  HAWAIIAN
  AIRLINES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/
  Mark B. Dunkerley

  
	
   

  	
   

  	
  Mark
  B. Dunkerley

  
	
   

  	
   

  	
  Its
  President and CEO

  
	
   

  	
   

  	
  “Company”

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/
  David J. Osborne

  
	
   

  	
   

  	
  David
  J. Osborne

  
	
   

  	
   

  	
  “Executive”

  

 

4

 

ATTACHMENT
A

 

	
  

  	
   

  	
   

  
	
  [HAWAIIAN

  	
   

  	
  April 5,
  2005

  
	
  AIRLINES
  LOGO]

  	
   

  	
   

  

 

David
J. Osborne

1107
Garden Street

Hoboken,
NJ 07030

 

Dear
David:

 

Attached you will find the Executive Employment Agreement (the “Agreement”)
which will remain open for your execution until 5:00 PM (EDT) April 8, 2005.
As a part of such Agreement, this letter will confirm my commitment to you with
regard to an annual performance bonus and stock options. Further, it will
confirm that these items, viewed in the aggregate with your total compensation
and benefits, will meet or exceed total compensation and benefits extended to
other senior vice-presidents.

 

With respect to a performance bonus, I intend to request that the Board
of Directors of our parent corporation, Hawaiian Holdings, Inc. (“BOD”) award
a target bonus equal to 60% of your Base Salary as defined in Section 3.b.
of the Agreement, with the actual payment amount established annually as a
function of overall corporate performance and your performance relative to
previously established management objectives.

 

With respect to stock options in Hawaiian Holdings, Inc., I intend
to request that the BOD approve an incoming grant for you of 106,000 stock
options that would be awarded as soon after the stock option plan is approved
by the BOD as is practicable, and that would vest in two equal tranches—one
tranche of 53,000 to vest on the first anniversary of this Agreement, and a
second tranche of 53,000 to vest on the second anniversary of this Agreement. The
actual vesting and exercise of such stock options shall be subject to the plan
as it is established and may be amended, supplemented, replaced or terminated
from time to time, and the exercise price shall be determined by the BOD. However,
should your grant, as approved by the BOD result in either your first and
second tranche or just your second tranche of options not vesting within
your Term of Employment as contemplated by this letter, I will request that the
Board of Directors approve terms of grant that would accelerate the vesting of
the such affected tranche(s), as appropriate, so that the option will fully
vest within your Term of Employment.

 

If you find the representations contained in this letter to be consistent
our discussions, please also countersign this letter in the space provided
below and return it to me along with the fully executed  Executive
Employment Agreement.

 

I look forward to your joining the team.

 

 

	
  Sincerely,

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/
  Mark B. Dunkerley

  	
   

  
	
  Mark
  B. Dunkerley

  	
   

  
	
  President
  and Chief Operating Officer

  	
   

  

 

	
  Honolulu
  International Airport

  	
  P.O. Box 30008

  	
  Honolulu, Hawaii 96820-0008

  	
  Phone: (808) 835-3700

  	
  HawaiianAir.com

  

 

 

EXECUTIVE EMPLOYMENT AGREEMENT

 

This EMPLOYMENT AGREEMENT (“Agreement”) dated
April 5, 2005 and effective as of May 23, 2005 (“Effective Date”) is
entered into by and between David Osborne (“Employee”) and Hawaiian Airlines, Inc.,
a Hawaii corporation (“Company”).

 

Company and Employee desire to establish
Company’s right to services of Employee, in the capacity described below, on
the terms and conditions and subject to the rights of termination hereinafter
set forth, and Employee agrees to engage in such employment on those terms and
conditions.

 

In consideration of the mutual agreements
hereinafter set forth, Employee and Company have agreed and do hereby agree as
follows:

 

1.                                       EMPLOYMENT AS
SENIOR VICE PRESIDENT — CHIEF INFORMATION OFFICER (“CIO”).   Company does
hereby employ and engage Employee as Senior Vice President - CIO, and Employee
does hereby accept and agree to such engagement and employment.

 

a.                                       Basic Duties.   Employee’s
duties during the Employment Period shall be to serve as Senior Vice President
— CIO, which shall include having overall charge and responsibility for
Information Technology (“IT”) management (encompassing enterprise architecture,
plans, and accountability for Company’s IT investments and results), information
management, information security (to protect the availability of Company’s
computer systems, the integrity of business operations, and the confidentiality
of sensitive information), information quality guidelines (oversight and
maintenance to ensure and maximize the quality, objectivity, utility, and
integrity of information, including statistical information, disseminated by
Company), and implementation of and compliance with applicable laws, rules and
regulations. The precise scope of the duties of Employee may be modified from
time to time at the discretion of Company’s President and Chief Executive
Officer (CEO) or his designee(s) consistent with Employee’s titles and
general duties and responsibilities hereunder.

 

b.                                      Reporting Relationship.   Employee shall
at all times report to the President and CEO or his designee(s).

 

c.                                       Time and Effort Expected of
Employee.   Employee shall devote full
time, attention, energy and skill to the performance of Employee’s duties for
Company and for the benefit of Company. Furthermore, Employee shall exercise
due diligence and care in the performance of Employee’s duties to Company under
this Agreement.

 

2.                                       TERM OF
AGREEMENT.   The term of this Agreement (“Term”)
shall commence on the Effective Date and shall continue for a period of two (2) years,
unless terminated earlier as provided in Section 7 of this Agreement.
The term of this Agreement may be extended upon mutual agreement in writing
signed by Employee and an authorized representative of Company. The period of
time commencing on the Effective Date and ending on the expiration date of the

 

 

Term, or, if earlier, the date of termination
of Employee’s employment (“Termination Date”) under this or any successor
agreement shall be referred to as the “Employment Period.”

 

3.                                       COMPENSATION.

 

a.                                       SIGNING BONUS.   As an
inducement to enter into this Agreement, Company will pay Employee a signing
bonus in the gross amount of $100,000, less applicable withholdings, payable
within thirty (30) days after full execution of this Agreement.

 

b.                                      BASE SALARY.   Company shall
pay Employee, and Employee agrees to accept from Company, a base salary at the
rate of TWO HUNDRED AND TWENTY-FIVE THOUSAND DOLLARS AND NO /100THS DOLLARS ($225,000) per
year (“Base Salary”), less applicable withholdings required by law or Employee’s
benefit plans or other deductions authorized in writing by Employee to be
withheld or deducted, payable in equal semi-monthly installments in accordance with
Company’s regular payroll practices. Employee’s Base Salary shall be reviewed
annually by Company and may be increased, but not decreased, by Company in its
sole and absolute discretion. Any adjusted amounts under this Section 3.b.
will thereafter become the “Base Salary” for purposes of this Agreement.

 

c.                                       PERFORMANCE BONUS.   In addition to
the Base Salary, Employee shall be eligible to participate
during the Employment Period in any performance bonus plan hereafter
established for senior officers of Company by the Board of Directors (the “BOD”).
Any award to Employee under that plan shall be payable, less applicable
withholdings, in the amount, in the manner, and at the time determined by the BOD,
in its sole and absolute discretion. Company will request that the BOD award a
target bonus equal to 60% of Employee’s Base Salary, with actual payment amount
established annually as a function of overall corporate performance and
Employee’s performance relative to previously established management objectives.

 

d.                                      STOCK OPTIONS.   In addition to
Base Salary, Employee shall be eligible to participate during the Employment
Period in any stock option plan hereafter established for the senior officers
of Company by the BOD, and to receive an initial grant of a number of option
shares and having other terms and conditions consistent with initial grants set
forth in the cover letter to this Agreement, and in accordance with plan terms
and applicable law. Subject to the foregoing, any award to Employee under such
plan shall be made in an amount, in the manner, and at the time determined by the BOD, in its
sole and absolute discretion.

 

e.                                     LONG TERM INCENTIVE PLANS.   In addition to
Base Salary, Employee shall be eligible to participate during the Employment
Period in any long term incentive plans hereafter established for the senior
officers of Company by the BOD in accordance with plan terms and applicable law. Any award to
Employee under such plan shall be made in an amount, in the manner, and at the
time determined by the BOD, on a basis consistent with other senior officers, but
otherwise in its sole and absolute discretion.

 

2

 

f.                                         401(k) PLAN.   Employee shall
be eligible to participate in a 401(k) or analogous plan (the “401(k) Plan”)
according to its terms, which shall be developed by Company, subject to
approval of the BOD, and which shall not occur before Company’s emergence from
Chapter 11 bankruptcy.

 

4.                                       FRINGE BENEFITS.   During his
employment under this Agreement, Employee shall be eligible to participate in, and
to be covered by, such employee benefit plans effective generally with respect
to Company’s senior vice president employees as those plans may be amended, supplemented,
replaced or terminated from time to time, to the extent Employee is eligible
under the terms of such plans; and Employee shall be eligible to receive such
other fringe benefits as may be granted to Employee from time to time by the
BOD or as delegated by it in its sole and absolute discretion. In addition to
the foregoing benefits, Employee shall also receive the following individual
benefits:

 

a.                                       TRAVEL BENEFITS.   During
the Employment Period, Employee and Employee’s spouse and eligible dependents
shall be entitled to travel benefits on Company flights (but not charter
flights) at a level and under procedures commensurate with the officer level, subject
to IRS requirements, and pursuant to Company policy. Employee and Employee’s
spouse and eligible dependents of Employee shall be entitled to travel benefits
on other airlines consistent with Company’s interline transportation
agreements.

 

b.                                    EXECUTIVE LONG-TERM
DISABILITY INSURANCE PLAN.   Subject to the applicable
waiting periods, Employee will be included, at Company’s expense, in Company’s
Executive Long-Term Disability Insurance Plan, as it may be amended, supplemented,
replaced or terminated from time to time.

 

c.
                                    BUSINESS
EXPENSES.   Company shall reimburse
Employee for any and all reasonable out-of-pocket, necessary, customary, and
usual expenses, properly receipted in accordance with Company policies, incurred
by Employee on behalf of Company, provided Employee properly accounts to
Company for such expenses in accordance with the rules and regulations of
the Internal Revenue Service under the Code, and in accordance with the
standard policies and procedures of Company to reimburse business expenses, which
obligation shall survive the termination of this Agreement.

 

d.                                      VACATIONS.   Company will
provide reasonable vacations authorized by the President and CEO subject to
requirements of operations and as duties may permit, provided that unused
vacation will not be accrued and Company will not make payment to Employee for
unutilized vacation.

 

e.                                       SICK LEAVE.   Reasonable sick
leave for illness or injury will also be provided, provided that unused sick
leave will not be accrued and Company will not make payment to Employee for
unutilized sick leave.

 

3

 

5.                                       RELOCATION.

 

a.                                       Company will reimburse
Employee for all reasonable costs related to relocation to Hawaii, which will
include, but not be limited to, the following items; (i) the reasonable
out-of-pocket costs of moving his household goods and belongings from his
present home to Hawaii, including packing, unpacking, shipping and insurance; (ii) the
shipment of one automobile to Hawaii; and (iii) one (1), one-way travel
costs (coach) for Employee and his spouse and eligible dependents directly
related to Employee’s relocation to Hawaii, (collectively referred to as the ‘Relocation
Expenses”). The Relocation Expenses will be reimbursed to a maximum of $40,000,
with appropriate receipts, grossed up for all taxes incurred by employee on
such reimbursements.

 

b.                                    If, during the first
eighteen (18) months following the Effective Date, Company terminates Employee’s
employment without Cause then Company will reimburse Employee for reasonable
costs described above as Relocation Expenses incurred to relocate from Hawaii (collectively
referred to as the “Termination Expenses”). The Termination Expenses will be
reimbursed up to a maximum of the lesser of (i) actual Relocation Expenses
paid under Section 5.a. above, or (ii) $40,000, inclusive of tax, with
appropriate receipts.

 

c.                                       If, during the first twelve
(12) months following the Effective Date, Employee voluntarily resigns from
Company (other than due to a material breach of this Agreement by Company), Employee
agrees to repay Company the full amount Employee received as Relocation
Expenses in Section 5.a., and the full amount received by Employee in Section 3.
a.

 

6.                                       CONFIDENTIAL
INFORMATION.   Employee recognizes that by
reason of Employee’s employment by and service to Company, Employee will occupy
a position of trust with respect to business and technical information of a
secret or confidential nature which is the property of Company which will be
imparted to Employee from time to time in the course of the performance of
Employee’s duties hereunder (the “Confidential Information”). Employee
acknowledges that such information is Company’s valuable and unique asset and
agrees that Employee shall not, during or after the Term of this Agreement, use
or disclose directly or indirectly any of Company’s Confidential Information to
any person, except that Employee may use and disclose to Company’s authorized
personnel such Confidential Information as is reasonably appropriate in the
course of the performance of Employee’s duties hereunder. Company’s
Confidential Information shall include all information and knowledge of any
nature and in any form relating to Company including, but not limited to, business
plans; development projects; computer software and related documentation and
materials; designs, practices, processes, methods, know-how and other facts
relating to Company’s business; and advertising, promotions, financial matters,
sales and profit figures, and customers or customer lists.

 

7.                                       TERMINATION OF
EMPLOYEE’S EMPLOYMENT.

 

a.                                       DEATH.   If Employee
dies while employed by Company, Employee’s employment shall immediately
terminate. Company’s obligation to pay Employee’s Base Salary shall cease as of
the date of Employee’s death. Thereafter, Employee’s beneficiaries or estate

 

4

 

shall receive benefits, if any, in accordance
with Company’s retirement, insurance, and other applicable benefit plans then
in effect.

 

b.                                      DISABILITY.   If Employee (i) becomes
Disabled, as defined in Company’s Executive Long-Term Disability Plan, (ii) he
cannot be reasonably accommodated by Company, and (iii) he commences to
receive long-term disability benefits, Employee’s employment may be terminated
by Company or Employee. During any period prior to such termination during
which Employee is absent from the full-time performance of Employee’s duties
with Company due to Disability, Company shall continue to pay Employee the Base
Salary at the rate in effect at the commencement of such period of Disability. Any
such payments made to Employee shall be reduced by amounts received from disability
insurance obtained or provided by Company, and by the amounts of any benefits
payable to Employee, with respect to such period, under Company’s Executive
Long-Term Disability Plan. Subsequent to the termination provided for in this Section 7.
b., Employee’s eligibility for any benefits shall be determined under Company’s
retirement, insurance, and other applicable benefit plans then in effect in
accordance with the terms of such plans.

 

c.                                       TERMINATION BY COMPANY FOR
CAUSE.   Company may terminate Employee’s employment under
this Agreement for “Cause” at any time prior to expiration of the Term of the
Agreement, only upon the occurrence of any one or more of the following events:

 

(i)                                     The material breach of this
Agreement by Employee, including without limitation, repeated neglect of
Employee’s duties, Employee’s repeated material lack of diligence and attention
in performing services as provided in this Agreement, or Employee’s repeated
failure to implement or adhere to Company policies, in each case after notice
to Employee stating the reason for such breach and providing Employee thirty (30)
days opportunity to cure, provided however that such notice and opportunity to
cure shall not be required to be provided more than three (3) times during
the Employment Period prior to termination.

 

(ii)                                  Commission of a
crime (other than a petty offense or traffic violation) that has a material
adverse impact on Company’s reputation and standing in the community.

 

(iii)                               Fraudulent
conduct in connection with the business affairs of Company, regardless of
whether said conduct is designed to defraud Company or others.

 

(iv)
                           Conduct in
material violation of Company’s and/or its parent company’s corporate
compliance rules, practices, procedures and ethical guidelines.

 

(v)                                 Material
violation(s) of Company’s House
Rules, a copy of which has been provided to Employee by Company.

 

In the event of termination for Cause, Company’s obligation to pay
Employee’s Base Salary and all benefits shall cease as of the Termination Date.
Except as provided above in Section 7.c.(i).,

 

5

 

if Employee’s employment is terminated for
Cause, Employee’s employment may be terminated immediately without any advance
written notice.

 

d.                                      TERMINATION BY COMPANY
WITHOUT CAUSE.   Company shall have the right to
terminate Employee’s employment prior to the expiration of the Term,
at any time, without Cause. In the event Company shall so elect to
terminate Employee’s employment without Cause, Employee shall be entitled to
only such payments as may be required under the terms of Section 8 of this
Agreement. Employee agrees that in the event of his termination without Cause, the
Term of this Agreement will be deemed to be the period between the Effective
Date and the Termination Date.

 

e.                                       TERMINATION AT END OF TERM. If Employee
continues to work through the end of the Term, this Agreement will expire at
the end of the Term, and Company’s obligation to pay Employee’s compensation
and fringe benefits shall cease as of the end of the Term. In the event either
Employee or Company desires Employee to be employed by Company beyond the
Employment Period, such party will notify the other in writing of his or its
intention 180 days prior to the end of the Term and the parties will negotiate
any extension prior to the end of the Term (“Extension Negotiation Period”). If
the parties do not reach agreement to extend Employee’s employment during the
Extension Negotiation Period, Employee’s employment shall end on the last day
of the Term and Employee shall be entitled to an amount equal in total to six
months of prorated Employee’s Base Salary and medical/dental premiums in
addition to the remainder of compensation and benefits owed under the Term of
this Agreement (“the Non-Renewal Sum”). The Non-Renewal Sum shall be paid in a
lump sum, less applicable withholdings, on the Termination Date.

 

f.                                         RESIGNATION BY
EMPLOYEE.   If Employee voluntarily
resigns his employment at any time during the term of this Agreement, Company’s
obligation to pay Employee’s compensation and fringe benefits shall cease as of
the date of resignation. Employee agrees to provide Company with at least
thirty (30) days written notice prior to the effective date of resignation. Company
may elect, in its sole and absolute discretion, to relieve Employee of his
employment duties for all or any part of the thirty (30) day notice period. However,
Employee shall continue to receive compensation and benefits under this
Agreement through the effective date of his resignation.

 

g.                                      RETURN OF
COMPANY PROPERTY.   Upon termination, Employee
will immediately return all Company issued items, including, but not limited to
Company identification badge(s), access card(s), AOA badge(s), travel card, Friendship
Travel Passes (FTPs), computer equipment (hardware/software), disks and/or
electronic data, fax machine(s), pager(s), company credit card(s), company
telephone card(s), access code(s), key(s), company files, work product, manuals,
customer lists, company documents, financial information, operational
information, plans, memoranda, notes, and correspondence.

 

h.                                      PAYMENT OF
ACCRUED OBLIGATIONS.   Notwithstanding anything in
this Section 7 to the contrary, upon termination of Employee’s employment
for any reason, Company

 

6

 

shall
pay Employee: (i) Employee’s Base Salary earned and unpaid through the
Termination Date, if any, and (ii) unreimbursed expenses payable in
accordance with Company policy (“Accrued Expenses”). The payment of Accrued
Expenses shall be made within ten (10) days following Termination Date.

 

8.              PAYMENTS UPON
TERMINATION WITHOUT CAUSE IN EXCHANGE FOR AGREEMENT TO WAIVE ALL CLAIMS.

 

a.             If, during the
Term of this Agreement, Employee’s employment is terminated by Company without
Cause, in addition to Accrued Obligations, Employee shall be entitled to the
following payments in exchange for a valid release and waiver of all claims
through the Termination Date that Employee may have at that time against
Company or related persons or entities (“Waiver of All Claims”): Company shall
pay to Employee an amount equal to Employee’s Base Salary and medical/dental
premiums for one year plus the prorated value of any Performance Bonus to which
Employee would have been entitled in the current year (“the Settlement Sum”). The
Settlement Sum shall be paid in a lump sum, less applicable withholdings, on
the Termination Date. Company shall provide all information for continuation of
fringe benefits to the extent required by law.

 

b.             If Employee
fails or refuses to agree to a valid Waiver of All Claims through the
Termination Date, Employee will not be paid any amounts under this Section 8.

 

c.             TAX WITHHOLDING
OBLIGATIONS. At the time that the Waiver of All Claims is
executed, the parties will determine the extent to which any of the payments
provided for in this Section 8 may be subject to federal, state, or local
tax or other withholdings. Those tax/withholding obligations will be detailed
in the Waiver of All Claims.

 

d.             NO OTHER
COMPENSATION OR BENEFITS POST TERMINATION. No other payment,
compensation or fringe benefit other than as described in this Section 8
and in Section 5.b. shall be provided to, or owed to, Employee after
termination with or without Cause.

 

e.             Employee shall
not be required in any way to mitigate the amount of any payment provided for
in this Section 8, including, but not limited to, by seeking other
employment, nor shall the amount of any payment provided for in this Section 8
be reduced by any compensation earned by Employee as the result of employment with
another employer after the Termination Date, or otherwise.

 

9.               NONCOMPETITION PROVISIONS.

 

a.           NONCOMPETITION. During the
Term of this Agreement and for a period of twelve (12) months commencing on the
Termination Date, Employee agrees and covenants that Employee shall not,
directly or indirectly, undertake to become an employee, officer, partner,
consultant or otherwise be connected with any entity (i) for which, at
such time, in excess of 10% of its revenues are derived from airline operations
(including without limitation, passenger,

 

7

 

charter,
military, cargo, or other airline operations) within Hawaii and/or between
Hawaii and the mainland United States, or (ii) in which Employee’s
specific duties and responsibilities are in direct competition with Company
either within Hawaii or on routes to and
from Hawaii serviced by Company. Employee acknowledges and agrees that any
breach of this non-competition provision shall entitle Employer to immediately
terminate any payments to him pursuant to Section 8 of this Agreement. In
addition, Employee agrees that any breach or threatened breach of this
provision 9.a. will entitle Company to an injunction from any court having
jurisdiction over Employee, it being agreed that any such breach would
irreparably harm Company. In addition, Company will be entitled to such damages
as may be proved in court arising from such breach.

 

b.             NONDISPARAGEMENT. During the Term
of this Agreement and for a period of twelve (12) months commencing on the Termination
Date, Employee agrees that he shall not make any statements that disparage or
tend to disparage Company, its products, services, officers, employees,
advisers or other business contacts, and Company agrees that its officers and
management employees of Company’s human resources department shall not make any
statements that disparage or tend to disparage Employee. The parties
acknowledge and agree that each act of such disparagement shall entitle the
other to $5,000 in liquidated damages, which shall be awarded by an arbitrator
pursuant to the provisions of Section 11 of this Agreement. In addition,
Employee acknowledges that any breach of this non-disparagement provision shall
entitle Company to immediately terminate any payments pursuant to Section 8
of this Agreement. Nothing herein shall be construed to apply to limit Company
in its exercise of Section 7.c. or permit sanctions for statements made in
the exercise of such provision.

 

c.             RIGHT TO
COMPANY MATERIALS. Employee agrees that all styles, designs,
lists, materials, books, files, reports, correspondence, e-mails and other
paper and electronically stored information, records, and other documents (“Company
Materials”) used, prepared, or made available to Employee, shall be and shall
remain the property of Company. Upon the termination of employment or the
expiration of this Agreement, all Company Materials shall be returned
immediately to Company, and Employee shall not make or retain any copies
thereof.

 

d.             ANTI-SOLICITATION. Employee
promises and agrees that during the term of this Agreement and for a period of
twelve (12) months commencing on the Termination Date, Employee will not
influence or attempt to influence customers or suppliers of Company or any of
its present or future subsidiaries or affiliates, either directly or
indirectly, to divert their business to any individual, partnership, firm,
corporation or other entity then in competition with the business of Company or
any subsidiary or affiliate of Company. Employee acknowledges and agrees that
any breach of this anti-solicitation provision shall entitle Company to
immediately terminate any payments pursuant to Section 8 of this
Agreement. In addition, Employee agrees that each act of such solicitation
shall entitle Company to $5,000 in liquidated damages, which shall be awarded
by an arbitrator pursuant to the provisions of Section 11 of this
Agreement.

 

8

 

e.           SOLICITING
EMPLOYEES. During the term of this Agreement and for a
period of twelve (12) months commencing on the Termination Date, Employee
promises and agrees that Employee will not directly or indirectly solicit any
of Company’s employees to work for any business, individual, partnership, firm,
corporation, or other entity. Employee acknowledges and agrees that any breach
of this Soliciting Employees provision shall entitle Company to immediately
terminate any payments pursuant to Section 8 of this Agreement. In
addition, Employee agrees that each act of such solicitation shall entitle
Company to $5,000 in liquidated damages, which shall be awarded by an
arbitrator pursuant to the provisions of Section 11 of this Agreement.

 

10.             NOTICES. All notices,
requests, demands and other communications hereunder shall be in writing and
shall be effective upon receipt. All notices shall be given or served
personally or sent by facsimile or first class mail, postage prepaid, addressed
as follows:

 

If
to Company:

 

Hawaiian
Airlines, Inc.

Attn:
Senior Vice President, People Services Group

3375
Koapaka Street, Suite H-460

Honolulu,
Hawaii 96819

Phone:
808/835-3628

Fax:
    808/838-6731

 

If
to Employee:

 

David
J. Osborne

At
Employee’s address set forth on the payroll records of Company.

 

or
to such other address which the party receiving the notice has notified
the party giving the notice in the manner aforesaid.

 

11.             ARBITRATION CLAUSE/ATTORNEY’S
FEES. Any controversy or claim arising out of or relating to this Agreement
(other than a breach of Provision 9.a.) shall be
settled by expedited arbitration administered by Dispute Prevention and
Resolution, Inc. (“DPR”) in Honolulu, Hawaii under its rules applicable
to the arbitration of employment disputes, and judgment upon the award
rendered by the arbitrator(s) may be entered in any court having
jurisdiction thereof. In the event judicial, quasi-judicial or arbitral
determination is necessary to resolve any dispute arising as to the parties’
rights and obligations hereunder, the parties agree that the losing party shall
pay the costs and fees of the prevailing party. Should there be a disagreement
between the parties as to who is the losing party and who is the prevailing
party, the judicial, quasi-judicial or arbitral body shall have the
jurisdiction to determine that status.

 

12.             ATTORNEY’S FEES FOR ADVICE
AND COUNSEL ASSOCIATED WITH THE NEGOTIATION OF THIS AGREEMENT. Company
agrees to reimburse Employee for 

 

9

 

reasonable
attorney’s fees incurred for advice and counsel associated with the
consummation of this Agreement not to exceed $10,000.

 

13.              TERMINATION OF PRIOR AGREEMENTS. This
Agreement terminates and supersedes any and all prior agreements and
understandings between the parties with respect to employment or with respect
to the compensation of Employee by Company from, and after the Effective Date.

 

14.              ASSIGNMENT: SUCCESSORS. This Agreement
is personal in its nature and neither of the parties hereto shall, without the
consent of the other, assign or transfer this Agreement or any rights or
obligations hereunder; provided that, in the event of the merger,
consolidation, transfer, or sale of all or substantially all of the assets of
Company with or to any other individual or entity, this Agreement shall,
subject to the provisions hereof, be binding upon, and inure to the benefit of
such successor and such successor shall discharge and perform all the promises,
covenants, duties, and obligations of Company hereunder.

 

15.              GOVERNING LAW. This Agreement
and the legal relations thus created between the parties hereto shall be
governed by and construed under and in accordance with the laws of the State of
Hawaii.

 

16.              ENTIRE AGREEMENT: HEADINGS. This Agreement
embodies the entire agreement of the parties respecting the matters within its
scope and may be modified only in writing. Section headings in this
Agreement are included herein for convenience of reference only and shall not
constitute a part of this Agreement for any other purpose.

 

17.              WAIVER; MODIFICATION. Company’s
failure to insist upon strict compliance with any of the terms, covenants, or
conditions hereof shall not be deemed a waiver of such term, covenant, or condition, nor
shall any waiver or relinquishment of, or failure to insist upon strict
compliance with, any right or power hereunder at any one
or more times be deemed a waiver or relinquishment of such right or power at
any other time or times. This Agreement shall not be modified in any respect
except by a writing executed by each party hereto.

 

18.              SEVERABILITY. In the event
that a court of competent jurisdiction determines that any portion of this
Agreement is in violation of any statute or public policy, only the portions of
this Agreement that violate such statute or public policy shall be stricken.
All portions of this Agreement that do not violate any
statute or public policy shall continue in full force and effect. Further, any
court order striking any portion of this Agreement shall modify the stricken
terms as narrowly as possible to give as much effect as possible to the
intentions of the parties under this Agreement.

 

19.              INDEMNIFICATION. Company shall
indemnify and hold Employee harmless to the maximum extent permitted by Section 415-5 of the Hawaii
Business Corporation Act, and the Restated Articles of Incorporation and
Amended Bylaws of Hawaiian Airlines, Inc. Company will maintain a
directors and officers liability insurance policy during the term of this

 

10

 

Agreement,
which policy shall name Employee as an insured.

 

20.             COUNTERPARTS. This Agreement
may be executed in several counterparts, each of which shall be deemed to be an
original but all of which together will constitute one and the same instrument.

 

21.             FACSIMILE SIGNATURES. This
Agreement may be executed by the parties by facsimile, and facsimile signatures
shall be binding.

 

IN
WITNESS WHEREOF, Company has caused this Agreement to be executed by its duly
authorized officers, and Employee has hereunto signed this Agreement, as of the
date first above written.

 

	
  HAWAIIAN
  AIRLINES, INC.:

  	
   

  	
  EMPLOYEE:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/
  Mark B. Dunkerley

  	
   

  	
  /s/
  David J. Osborne

  
	
  Mark
  B. Dunkerley

  	
   

  	
  David
  J. Osborne

  
	
  President
  and Chief Operating Officer

  	
   

  	
   

  

 

11

 

ATTACHMENT B

 

HAWAIIAN AIRLINES, INC.

SUMMARY OF BENEFITS

EXECUTIVES

 

401(k) Savings Plan — Optional
(Contributory)

 

Employee Contribution Eligibility: First of the month on
or following the employee’s date of hire.

 

Company Contribution/Company Match Eligibility: First of
the month following completion of one year of service, provided employee has
worked 1,000 hours during first anniversary year.

 

Vesting: Participants are 100% vested in employee and
Company contributions.

 

Employee Contributions: Semi-monthly pre-tax payroll deductions
of 1-50% (up to the lesser of 50% of your eligible compensation or $15,500 for
2008).

 

Catch-Up Contributions ($5,000): You must be age 50 and
have elected to defer the maximum Pre-Tax Contribution percentage (50%) or you
must defer the maximum dollar amount allowed under the Internal Revenue Code
($5,000 for 2008).

 

Company Contributions: After meeting eligibility, an
employee will be entitled to a monthly Company Contribution of 5.04% of
earnings, which will be contributed to the 401(k) Savings Plan. Employees
are 100% vested in the Company Contribution.

 

Company Match: After meeting eligibility, an employee will
be entitled to a Company Match of up to 2% of earnings. For each dollar
contributed as a salary deferral, the Company will contribute an equal amount
up to 2%. Employees are vested in the Company Match on the earliest of (i) attaining
age 55, (ii) incurring a disability, (iii) death, or (iv) completion
of three years of service.

 

Investment Funds: Participants invest pre-tax
contributions into a selection of mutual funds. Unlimited exchanges between
investment funds may be made at no cost to participants.

 

1

 

Accidental
Death & Dismemberment

 

Basic
(Non-Contributory)

 

·      1 x annual earnings capped
at $120,000.

 

·      Company paid monthly
premiums

 

Supplemental
– OPTIONAL (Contributory)

 

·      1 x annual earnings capped
at $120,000

 

·      Monthly Premium = .05 per
$1,000 of coverage

 

If
you have an accident which results in any of the following losses within 90
days of an accident, you or your beneficiary will be eligible to receive a lump
sum payment of 100% of your coverage:

 

·      Life

·      Both hands, Both Feet, or
Sight of Both eyes

·      Any combination of Foot,
Hand or Sight of One Eye

 

Any
loss of one hand, one foot, or sight of one eye will be eligible for a lump sum payment of 50% of your coverage.

 

Dental Plan Benefits

 

·      Hawaii Dental Service.

 

·      Effective: First of the
month following date of hire.

 

·      Dependent coverage includes
spouse and/or eligible child up to age 19, or through age 22 if full-time
student.

 

·      Company paid monthly
premiums.

 

Dependent’s Life Insurance – Optional
(Contributory)

 

·      Spouse coverage:  $5,000

 

·      Dependent Child Coverage:  $2,000  (Age
6 mos - 19, to 23 if full-time student)

$100  (14 days but less than 6 mos)

 

·      Monthly Composite rate = $1.59

 

·      Effective: First of the
month following date of hire

 

2

 

Domestic
Partner

 

The
following benefits are offered to same-sex domestic partners of active status
employees:

·      Medical

·      Dental

·      Consolidated Omnibus Budget Reconciliation Act
(COBRA)

 

Monthly
Premiums:

 

Premium
amount is based on 1.5% of employee earnings with applicable maximums (please
see page 5 or 6) and is deducted on an after-tax basis. In addition to the
monthly premium, the value of the 2-Party premium less the single premium is
added to your income and inputted for taxes.

 

To
register a domestic partner, please go to HApeople.com and download the packet
of information and applicable forms or contact the Employee Benefits
Department.

 

Employee
Assistance Program

 

	
  FEI
  Behavioral Health

  	
  Ph:
  

  	
  (866)
  249-4488

  
	
   

  	
   

  	
  (Toll
  Free)

  

 

Employee Flexible Spending Program – Optional (Contributory)

 

·      Eligibility: First of the
month following date of hire.

 

·      Health Care Expense Account

 

·      Dependent Care Assistance
Account

 

·      Participants may set aside
money through payroll deduction on a pre-tax basis for eligible healthcare
and/or dependent care expenses. These accounts may be used to pay for eligible
expenses such as healthcare co-payments, as well as childcare and elder care
expenses. As eligible expenses are incurred, claims are filed and
reimbursed from the respective account(s) with pre-tax dollars.

 

3

 

Group Life Insurance

 

·      Eligibility: For guaranteed
issue into the plan, you have up to 30 days from your date of hire to enroll.
There is no guaranteed issue into the program after the 30 days expire. You may
sign up anytime during the year however, you will need to go through evidence
of insurability (medical history required).

 

·      Group Life Insurance
coverage amounts in excess of $50,000 will be subject to monthly imputed taxes.

 

Basic (Non-Contributory)

 

·      1
X annual base salary rounded to next higher multiple of
$1,000, up to a maximum of $120,000.

 

·      Company paid monthly
premiums.

 

Supplement - OPTIONAL (Contributory)

 

·      1 X annual base salary
rounded to next higher multiple of $1,000, up to a maximum of  $120,000.

 

·      Monthly Premium  =  .255
per $1,000 of coverage

 

Long-Term Care (LTC) – Optional (Contributory)

 

Long-term
care offers coverage for a variety of services for
those who are unable to care for themselves. It includes assistance in the home
with day-to-day activities or special attention in a nursing home.

 

Eligibility:  For guaranteed issue into the plan, you have up to 30 days from your date of hire to enroll. There is
no guaranteed issue into the program after the 30 days expire. You may sign up
anytime during the year however, you will need to go through evidence of
insurability (medical history required). Spouses, parents, parents-in-laws,
grandparents and grandparent in-laws are
also eligible to enroll however they must go through evidence of
insurability.

 

Payroll
Deduction: Your monthly premium will be payroll
deducted on the 7th paycheck. Payroll deduction for spouses is
also allowed. You may also opt to be billed directly, in which case you need to
indicate this on your application.

 

Rates:
Rates are based on your age at the time your application is approved. Once
approved, your rates will be locked into the age rate. Rates may increase by
CNA’s approval only based on the cost of living for each state.

 

Application
Form: If you enroll within the 30-day period,
please fill out the Employee Information Form. Spouses must use the
Short Form Application. A self-address envelope is included in the packet.

 

Please
request a packet from Pua Akimoto in Employee Benefits at 835-3621 or call CNA
directly at 1-877-777-9072, or visit their website at www. ltcbenefits.com,
password is hawaiianltc.

 

4

 

Long-Term Disability (LTD) – Base Plan

 

·      Effective: First of the month following date of
hire.

 

·      Waiting Period: 90
consecutive days of total disability or exhaustion of sick leave, whichever
occurs later.

 

·      Base Benefit: 60% of base
salary to maximum of $11,000/month for non-occupational illness or injury with
offsets. Eligible to receive benefit up to age 65.

 

Medical
Plan Benefits

 

·      Choice of coverage between
HMSA and Kaiser.

 

·      Prescription Drug, Vision
Rider, Acupuncture and Chiropractor included.

 

·      Effective: First of the
month following date of hire.

 

·      Dependent coverage includes
spouse and/or eligible child up to age 19, or through age 24 if full-time
student.

 

·      If your spouse
is employed by Hawaiian Airlines, individual coverage if
desired, will be provided to each but neither may be included on his or her spouse’s
plan. Likewise, coverage for dependent children may be included under one
employee’s plan only.

 

HMSA-PPP

 

Monthly Premiums:

 

	
  Single:

  	
   

  	
  The
  lesser of 1.5% of the gross monthly wages or a maximum of
  $60.00

  
	
   

  	
   

  	
   

  
	
  2-Party:

  	
   

  	
  The
  lesser of 2% of the gross monthly
  wages or a maximum of $150.00

  
	
   

  	
   

  	
   

  
	
  Family:

  	
   

  	
  The
  lesser of 2% of the gross monthly wages or a maximum of $176.40

  

 

5

 

Medical
Plan Benefits – con’t

 

Kaiser
Hawaii

 

Monthly
Premiums:

 

	
  Single:

  	
   

  	
  The
  lesser of 1.5% of the gross
  monthly wages or a maximum of $51.44

  
	
   

  	
   

  	
   

  
	
  2-Party:

  	
   

  	
  The
  lesser of 2% of the gross monthly wages or a maximum of $102.90

  
	
   

  	
   

  	
   

  
	
  Family:

  	
   

  	
  The
  lesser of 2% of the gross monthly wages or a maximum of $154.36

  

 

Medical Stop
Loss

 

Stop
Loss is applicable only for employees and their dependents who are enrolled in
a Hawaiian Airlines medical plan. In the event the amount paid by the employee
exceeds $1,500 for a calendar year covered by the medical insurance, the
company shall pay 100% of the excess of
that year’s payments. This coverage shall be limited to each calendar year.
Such insurance shall apply only to eligible expenses which are covered and
included as part of the medical plan.

 

Employees
who believe they have met the requirements for Medical Stop Loss should contact
Jason Castro in the Benefits Department at (808) 838-6079 or via email at
jason.castro@hawaiianair.com.

 

Medical Waiver Program

 

·      Eligibility:
Employee must waive medical plan coverage under Hawaiian Airlines and
must be covered elsewhere under a State of Hawaii - Department of Labor (DOL)
approved medical plan.

 

·      Effective: First of the
month following date of hire.

 

·      No change in waiver election
is allowed for the remainder of the calendar year except in the event of a loss
of other medical coverage.

 

·      Employee will receive
monthly waiver payments on the second pay period of each month as follows:

 

	
  $41.66

  	
  -

  	
  Single

  
	
  $83.33

  	
  -

  	
  2-Party

  

 

6

 

	
  $125.00

  	
  -

  	
  Family

  

 

Retirement – Defined Benefits Plan (Frozen 9/30/93)

 

Eligibility:
First of the month following completion of one year of service and age 21,
provided employee has worked 1,000 hours during anniversary year.

 

100%
Vested after 5 years of service.

 

Benefit
formula at normal retirement (first of the month following age 65):

 

1.60%
X Final Average Earnings X Credited Service

 

After
meeting eligibility requirements, early retirement is permitted on the first
day of any month after age 55. Pension benefit may be reduced depending on age
and service.

 

Travel Accident Coverage

 

Travel
accident coverage of $20,000 - $60,000 depending on your salary grade is
effective the first of the month following date of hire.

 

Travel
accident insurance provides 24-hour, 365 days-a-year protection against travel
accidents anywhere in the world, whether you are on business, pleasure,
vacation, at home, on or off the job. If your injury results in death or
dismemberment (i.e., loss of both hands, both feet, sight in both eyes, speech
and hearing), you or your beneficiary will be eligible to receive a lump
sum payment up to the amount shown above.

 

Any
loss of one hand, one foot, sight of one eye, or loss of speech or hearing will
be eligible for a lump sum payment of one-half of the above coverage
amount.

 

If you have questions regarding
any of the benefits described in this

Summary, please call

Jason Castro, Benefits
Administrator

Phone: (808) 838-6079

Fax: (808) 835-3692

Hawaiian Airlines, Inc.

Employee Benefits Department

P.O. Box 30008

Honolulu, HI 96820

 

7

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