Document:

exv10w1

EXHIBIT 10.1

FIRST AMENDMENT TO

AMERICAN PACIFIC CORPORATION

DEFINED BENEFIT PENSION PLAN

The American Pacific Corporation Defined Benefit Pension Plan is hereby amended as follows:

	1.	 	Section 1.01 is amended to add the following language to the end thereof effective June 30,
2010:

	 
	 	 	Effective June 30, 2010, the Accrued Benefit of each Participant who terminates employment,
whether before or after June 30, 2010, and is rehired:

	 	(a)	 	after June 30, 2010 and
	 
	 	(b)	 	more than 60 days after the original termination of employment or, in the
case of a reduction in force, elimination of the Participant’s position or layoff and
recall as defined in the American Pacific Corporation Policies and Procedures, more
than one year after the date of layoff or termination

shall be frozen as of his or her termination of employment or layoff and shall not increase
or decrease as the result of additional years of Benefit Service, increases or decreases in
Final Average Compensation or Covered Compensation or for any other reason.

	2.	 	Section 2.01 is amended to add the following language to the end thereof effective June 30,
2010:

	 
	 	 	Participation in the Plan shall be frozen effective June 30, 2010 for individuals who are
not active employees on that date and who are hired or rehired:

	 	(a)	 	after June 30, 2010 and
	 
	 	(b)	 	more than 60 days after the original termination of employment or, in the
case of a reduction in force, elimination of the Participant’s position or layoff and
recall as defined in the American Pacific Corporation Policies and Procedures, more
than one year after the date of layoff or termination.

No additional Employee hired or rehired after June 30, 2010 shall become a Participant in
the Plan.

	3.	 	Section 1.06 is amended to read as follows effective October 1, 2008:
	 
	1.06	 	Applicable Interest Rate means the interest rate prescribed under Code section
417(e)(3)(C) (as it reads effective on and after the first day of the 2008 Plan Year) as in
effect for the second
calendar month preceding the Plan Year in which falls the Annuity Starting Date for the
distribution.

 

 

	4.	 	Section 1.07 is amended to read as follows effective October 1, 2008:
	 
	1.07	 	Applicable Mortality Table means the mortality table prescribed under Code section
417(e)(3)(B) (as it reads effective on and after the first day of the 2008 Plan Year).

	 
	5.	 	Section 5.03(b) is amended to read as follows effective October 1, 2007:

	 	(b)	 	No less than thirty (30) days and no more than ninety (90) days before the
Annuity Starting Date, the Plan Administrator shall provide a Participant with a
written explanation in nontechnical language, of the terms and conditions of: (1) the
Qualified Joint and Survivor Annuity, (2) his right to elect to waive the benefit and
the effect of such election, (3) the rights of the Participant’s Spouse with respect
to such election, (4) the right to make and effect of, a revocation of a previous
election, (5) the relative values of the various forms of benefit under the Plan, and
(6) the consequences of failing to defer receipt of a distribution.

	6.	 	Section 3.04 is amended to add the following to the end thereof effective June 30, 2010:
	 
	 	 	Notwithstanding the foregoing, effective June 30, 2010, the Disability Retirement Benefit
of each Participant who terminates employment, whether before or after June 30, 2010, and
is rehired:

	 	(a)	 	after June 30, 2010 and
	 
	 	(b)	 	more than 60 days after the original termination of employment or, in the
case of a reduction in force, elimination of the Participant’s position or layoff and
recall as defined in the American Pacific Corporation Policies and Procedures, more
than one year after the date of layoff or termination

shall be determined without regard to continued Benefit Service and Compensation described
in subsections (a) and (b).

	7.	 	Section 5.08 is amended to read as follows effective January 1, 2007:
	 
	5.08	 	Direct Rollover Distributions.

	 	(a)	 	Direct Rollover Election. Notwithstanding any provision of the Plan
to the contrary that would otherwise limit a Distributee’s election under this
Section, a Distributee may elect at the time and in the manner prescribed by the Plan
Administrator, to have all or any portion of an Eligible Rollover Distribution to
which he is otherwise entitled, paid directly to
any one Eligible Retirement Plan specified by the Distributee in a Direct Rollover.

Page 2 of Exhibit 10.1

 

	 	(b)	 	Definitions.

	 	(1)	 	Eligible Rollover Distribution means any distribution
of all or any portion of the balance to the credit of the Distributee, except
that an Eligible Rollover Distribution does not include: any distribution that
is one of a series of substantially equal periodic payments (not less
frequently than annually) made for the life (or life expectancy) of the
Distributee or the joint lives (or joint life expectancies) of the Distributee
and the Distributee’s designated Beneficiary, or for a specified period of ten
(10) years or more; any distribution to the extent such distribution is
required under Section 401(a)(9) of the Code; any hardship distribution
described in Code Section 401(k)(2)(B)(i)(IV); prior to January 1, 2002 the
portion of any distribution that is not includible in gross income; and after
December 31, 2001 the portion of any distribution that is not includible as
gross income but only if the Plan fails to agree to separately account for
such after-tax amounts and the earnings thereon.

	 
	 	(2)	 	Eligible Retirement Plan means an individual
retirement account described in Section 408(a) of the Code, an individual
retirement annuity described in Section 408(b) of the Code, an annuity plan
described in Section 403(a) of the Code, an annuity contract described in
section 403(b) of the Code, an eligible plan under section 457(b) of the Code
which is maintained by a state, political subdivision of a state, or any
agency or instrumentality of a state or political subdivision of a state and
which agrees to separately account for amounts transferred into such plan from
this Plan, or a qualified trust described in Section 401(a) of the Code, that
accepts the Distributee’s Eligible Rollover Distribution.

	 
	 	 	 	Effective January 1, 2008, Eligible Retirement Plan shall also include a
Roth IRA described in Code section 408A.

	 
	 	 	 	With respect to distributions not includible in gross income, Eligible
Retirement Plan shall include only an individual retirement account
described in Code Section 408(a), an individual retirement annuity
described in Code Section 408(b), a defined contribution plan described in
Code section 401(a) and on an after January 1, 2007, any qualified plan
described in Code section 401(a) or annuity plan described in Code section
403(b).

	 
	 	 	 	The definition of Eligible Retirement Plan in this paragraph shall also
apply in the case of a distribution to a surviving Spouse, or to a Spouse
or former Spouse who is the alternate payee under a

Page 3 of Exhibit 10.1

 

	 	 	 	qualified domestic
relations order as defined in Code section 414(p). However, for the
purpose of a distribution to a Distributee who is a non-Spouse
beneficiary, Eligible Retirement Plan shall only include an individual
retirement account described in Code section 408(a), an individual
retirement annuity described in Code section 408(b), or a Roth IRA
described in Code section 408A (collectively, “IRA”) that is established
on behalf of the non-Spouse Beneficiary and that will be treated as an
inherited IRA pursuant to the provisions of Code sections 402(c)(11) and
408(d)(3)(C)(ii).

	 	(3)	 	Distributee means an Employee or former Employee. In
addition, the Employee’s or former Employee’s surviving Spouse and the
Employee’s or former Employee’s Spouse or former Spouse who is the alternate
payee under a qualified domestic relations order, as defined in Section 414(p)
of the Code, are Distributees with regard to the interest of the Spouse or
former Spouse. Notwithstanding any provision of this Section to the contrary,
effective as of January 1, 2010, Distributee shall also include a non-Spouse
Beneficiary of a deceased Participant.

	 
	 	(4)	 	Direct Rollover means a payment by the Plan to the
Eligible Retirement Plan specified by the Distributee.

	8.	 	Section 10.01 is amended to read as follows effective October 1, 2007:
	 
	10.01	 	Amendment or Modification of the Plan. Except as provided herein, the Board
reserves the right to amend or terminate this Plan at any time and in any manner. The Board
may delegate this authority to any officer(s) of the Company. Any action by the Board shall
be evidenced by a valid resolution. Any action by any officer(s) shall be evidenced by a
valid officer’s certificate. The resolutions and officer’s certificates shall be attached to
this Plan and considered a part hereof. No modification or amendment shall:

	 	(a)	 	Cause or permit any portion of the funds or assets of the Plan to become the
property of the Employer prior to the satisfaction of all liabilities of the Plan;

	 
	 	(b)	 	Increase the duties or responsibilities of the Trustee without its written
consent;

	 
	 	(c)	 	Be effective to the extent that it may decrease the Accrued Benefit (as
provided in Code Section 411(d)(6)) of any Participant, except as permitted pursuant
to Section 412(d)(2) of the Code; or

Page 4 of Exhibit 10.1

 

	 	(d)	 	Become effective until set forth in a revised participation agreement
executed by the Company if such amendment is made by any other Employer.

For purposes of this Section, a Plan amendment that has the effect of (a) eliminating or
reducing an early retirement benefit or retirement-type subsidy, or (b) eliminating an
optional form, with respect to benefits attributable to service before the amendment shall
be treated as reducing a Participant’s Accrued Benefit. In the case of a retirement-type
subsidy, the preceding sentence shall apply only with respect to a Participant who
satisfies (either before or after the amendment) the pre-amendment conditions for the
subsidy. Notwithstanding the preceding, the Accrued Benefit of a Participant, early
retirement benefit, retirement-type subsidy, or optional form of benefit may be reduced to
the extent permitted under Code section 412(c)(8) (as it read before the first day of the
2008 Plan Year) or Code section 412(d)(2) (as it reads for Plan Years beginning on and
after January 1, 2008), or to the extent permitted under the Sections 1.411(d)-3 and
1.411(d)-4 of the U. S. Treasury Department regulations.

If the Plan’s vesting schedule is changed as a result of an amendment, each Participant who
has completed at least three (3) Years of Service may elect to continue to have his vested
percentage computed in accordance with the vesting schedule in effect for that Participant
prior to the amendment. This election may be made no earlier than the date the amendment
is adopted and no later than the latest of the date that is sixty (60) days after the date:
(i) the amendment is adopted; (ii) the amendment becomes effective; or (iii) the
Participant is issued a written notice of the amendment by the Employer or Plan
Administrator.

For each Participant who has completed fewer than three (3) Years of Service (i) the
Vesting Percentage of his Accrued Benefit (accrued on and after the date of the Plan
amendment) shall be computed in accordance with the vesting schedule as amended and (ii)
the Vesting Percentage of his Accrued Benefit (accrued before the effective date of the
amendment) shall not be less than the Vesting Percentage determined prior to the amendment.

	9.	 	A new Section 11.10 is added to read as follows effective October 1, 2008:

	 
	11.10	 	Limitations Based on Funded Status of the Plan.
	 
	 	 	Notwithstanding any provision of the Plan to the contrary, the following provisions shall
apply as required by Code section 436 effective for Plan Years beginning on or after
January 1, 2008, except to the extent the exception under Code section 436(d)(4) applies:

	 	(a)	 	In the event the Plan’s adjusted funding target attainment percentage for a
Plan Year is less than 60 percent, benefit accruals shall cease during the period
benefit accruals are restricted under the provisions of Code section

Page 5 of Exhibit 10.1

 

	 	 	 	436(e). However,
in determining whether benefit accruals will cease under this subsection for calendar
year 2009, the adjusted funding target attainment percentage for 2008 shall be
substituted for the adjusted funding target attainment percentage for 2009 in the
preceding sentence, if greater.

	 	(b)	 	In the event the Plan’s adjusted funding target attainment percentage for a
Plan Year falls below the threshold defined under Code section 436(d)(1) and/or (3),
the Trustee shall, as directed by the Plan Administrator, cease payment of any
prohibited payment during the period specified in, and to the extent necessary to
comply with the provisions of Code section 436(d).

	 
	 	(c)	 	In no event shall a prohibited payment be paid during any period the Employer
is a debtor in a case under Title 11, United States Code, or similar federal or state
law, to the extent necessary to comply with the provisions of Code section 436(d)(2).

	 
	 	(d)	 	In no event shall an amendment that has the effect of increasing liabilities
of the Plan by reason of increases in benefits, establishment of new benefits,
changing the rate of benefit accrual, or changing the rate at which benefits become
nonforfeitable become effective during the period such amendment would violate the
provisions of Code section 436(c).

	 
	 	(e)	 	If an optional form of benefit that is otherwise available under the terms of
the Plan is not available because of the application of Code section 436(d)(1) or (2),
the Participant or Beneficiary, as applicable, shall be eligible to elect another form
of benefit available under the Plan or to defer payment to a later date (to the extent
permitted under applicable qualification requirements).

	 
	 	(f)	 	If an optional form of benefit that is otherwise available under the terms of
the Plan is not available because of the application of Code section 436(d)(3), a
Participant or Beneficiary, as applicable, shall be eligible to defer his entire
payment to a later date (to the extent permitted under applicable qualification
requirements) or to bifurcate the benefit into unrestricted and restricted portions.
If such Participant or Beneficiary elects to bifurcate the benefit, the Participant
or Beneficiary shall be eligible to elect, with respect to the unrestricted portion of
the benefit, any optional form otherwise available under the Plan with respect to the
Participant’s or Beneficiary’s entire benefit and in such a case, if the Participant
or Beneficiary elects payment of the unrestricted portion of the benefit in the form
of a prohibited payment, the Participant or Beneficiary shall be eligible to elect:

	 	(i)	 	to receive payment of the restricted portion of the benefit
in any optional form of benefit under the Plan that is not a prohibited

Page 6 of Exhibit 10.1

 

	 	 	 	payment and that would have been permitted with respect to the Participant’s
or Beneficiary’s entire benefit, or

	 	(ii)	 	to defer commencement of the restricted portion of his
benefit until the restrictions on prohibited payments lapse and receive said
amount in any optional form of payment available under the Plan, but in either
case only if the Plan Administrator has determined in a consistent and
nondiscriminatory manner that Participants and Beneficiaries may defer only
the restricted portion of his benefit. Such election shall be subject to any
other applicable qualification requirements and shall be made in accordance
with all Plan rules regarding elections of forms of benefit. The deferred
commencement date of the restricted portion shall be treated as a new Annuity
Starting Date.

For purposes of this Section, the terms “adjusted funding target attainment percentage,”
“prohibited payment,” “unrestricted portion of the benefit,” and “restricted portion of the
benefit” shall have the meanings given under Code section 436, the regulations thereunder,
and any applicable Internal Revenue Service guidance.

In the event that the provisions of this Section 11.10 or any part thereof cease to be
required by law as a result of subsequent legislation or otherwise, this Section or any
applicable part thereof shall be ineffective without the necessity of further amendments to
the Plan.

	10.	 	A new Section 11.11 is added to read as follows effective October 1, 2008:

	 
	11.11	 	Limitations on Unpredictable Contingent Event Benefit.
	 
	 	 	Notwithstanding any provision of the Plan to the contrary, with respect to Plan Years
beginning on or after January 1, 2008, if a Participant or Beneficiary is entitled to an
“unpredictable contingent event benefit” (as defined under Code section 436(b)) with
respect to any event occurring during any Plan Year, such unpredictable contingent event
benefit shall not be provided to such Participant or Beneficiary if the Plan’s adjusted
funding target attainment percentage (as defined in Section 11.10) for such Plan Year is
less than 60 percent or would be less than 60 percent taking into account such occurrence;
provided, however, that such unpredictable contingent event benefit shall become payable if
and when the Plan meets the exemption under Code section 436(b)(2).

	 
	 	 	In the event that the provisions of this Section 11.11 or any part thereof cease to be
required by law as a result of subsequent legislation or otherwise, this Section or any
applicable part thereof shall be ineffective without the necessity of further amendments to
the Plan.

Page 7 of Exhibit 10.1

 

	11.	 	Section 12.08 is amended to add the following language to the end thereof effective January
1, 2007:

	 
	 	 	Effective for deaths on and after January 1, 2007, for purposes of determining Vesting
Service or any other additional benefit (other than service used to determine the
Participant’s Accrued Benefit) provided under the Plan, a Participant who dies while
performing qualified military service (as defined in Code section 414(u)) shall be deemed
to have resumed employment with the Employer on the day immediately preceding his death and
to have terminated employment on account of his death.

IN WITNESS WHEREOF, American Pacific Corporation, Inc. has caused this instrument to be executed
this 28th day of June, 2010.

	 	 	 	 	 	 	 

	 	 	American Pacific Corporation	 	 
	 
	 	 	 	 	 	 
	ATTEST: (SEAL)

	 	By:
	 	/s/ JOSEPH CARLEONE
 

	 	 

Page 8 of Exhibit 10.1exv10w2

EXHIBIT 10.2

FIRST AMENDMENT TO

AMPAC FINE CHEMICALS LLC PENSION PLAN

FOR SALARIED EMPLOYEES

The Ampac Fine Chemicals LLC Pension Plan for Salaried Employees is hereby amended as follows:

	1.	 	Section 3.1(b) is amended to read as follows effective October 1, 2008:

     (b) For determinations of actuarial equivalents in the form of lump sum payments, the
actuarial factors shall be determined using whichever of the factors described below
results in the largest value: (i) the factors specified in subsection (a); or (ii) the
mortality table specified in subsection (a) and the interest rate published by the Pension
Benefit Guaranty Corporation (as of the first day of the Plan Year in which such
determination is made) for the purpose of determining the present value of benefits for
terminating single-employer plans; or (iii) the applicable mortality table and the
applicable interest rate, as defined below:

     (A) The term “applicable mortality table” shall mean the mortality table
prescribed under Code section 417(e)(3)(B) (as it reads effective on and after the
first day of the 2008 Plan Year).

     (B) The term “applicable interest rate” shall mean the interest rate
prescribed under Code section 417(e)(3)(C) (as it reads effective on and after the
first day of the 2008 Plan Year) as in effect for the calendar month preceding the
Plan Year in which falls the Annuity Starting Date for the distribution.

	2.	 	Section 3.25 is amended to add the following language to the end thereof effective June 30,
2010:

 

 

     Effective June 30, 2010, the Pension Benefit (and the accrued benefit) of each
Participant who terminates employment, whether before or after June 30, 2010, and is
rehired:

	 	(a)	 	after June 30, 2010 and
	 
	 	(b)	 	more than 60 days after the original termination of employment or, in the
case of a reduction in force, elimination of the Participant’s position or layoff and
recall as defined in the Ampac Fine Chemicals LLC Policies and Procedures, more than
one year after the date of layoff or termination

shall be frozen as of his or her termination of employment or layoff and shall not increase
or decrease as the result of additional years of Credited Service, increases or decreases
in Annual Earnings, Average Annual Earnings, or Social Security Wage Base or for any other
reason.

	3.	 	Article IV is amended to add the following language to the end thereof effective June 30,
2010:

     Participation in the Plan shall be frozen effective June 30, 2010 for individuals who are not
active employees on that date and who are hired or rehired:

	 	(a)	 	after June 30, 2010 and
	 
	 	(b)	 	more than 60 days after the original termination of employment or, in the
case of a reduction in force, elimination of the Participant’s position or layoff and
recall as defined in the Ampac Fine Chemicals LLC Policies and Procedures, more than
one year after the date of layoff or termination.

No additional Employee hired or rehired after June 30, 2010 shall become a Participant in the Plan.

Page 2 of Exhibit 10.2

 

	4.	 	Section 7.1 is amended to add the following language to the end thereof effective June 30,
2010:

     Effective June 30, 2010, the Pension Benefit (and the accrued benefit) of each Participant who
terminates employment, whether before or after June 30, 2010, and is rehired:

	 	(a)	 	after June 30, 2010 and
	 
	 	(b)	 	more than 60 days after the original termination of employment or, in the
case of a reduction in force, elimination of the Participant’s position or layoff and
recall as defined in the Ampac Fine Chemicals LLC Policies and Procedures, more than
one year after the date of layoff or termination

shall be frozen as of his or her termination of employment or layoff and shall not increase or
decrease as the result of additional years of Credited Service, increases or decreases in Annual
Earnings, Average Annual Earnings, or Social Security Wage Base or for any other reason.

	5.	 	Section 7.2 is amended to add the following language to the end thereof effective June 30,
2010:

     Effective June 30, 2010, the Pension Benefit (and the accrued benefit) of each Participant who
terminates employment, whether before or after June 30, 2010, and is rehired:

	 	(a)	 	after June 30, 2010 and
	 
	 	(b)	 	more than 60 days after the original termination of employment or, in the
case of a reduction in force, elimination of the Participant’s position or layoff

Page 3 of Exhibit 10.2

 

	 	 	 	and recall as defined in the Ampac Fine Chemicals LLC Policies and Procedures, more
than one year after the date of layoff or termination

shall be frozen as of his or her termination of employment or layoff and shall not increase or
decrease as the result of additional years of Credited Service, increases or decreases in Annual
Earnings, Average Annual Earnings, or Social Security Wage Base or for any other reason.

	6.	 	Section 7.3 is amended to add the following language to the end thereof effective June 30,
2010:

     Effective June 30, 2010, the Pension Benefit (and the accrued benefit) of each Participant who
terminates employment, whether before or after June 30, 2010, and is rehired:

	 	(a)	 	after June 30, 2010 and
	 
	 	(b)	 	more than 60 days after the original termination of employment or, in the
case of a reduction in force, elimination of the Participant’s position or layoff and
recall as defined in the Ampac Fine Chemicals LLC Policies and Procedures, more than
one year after the date of layoff or termination

shall be frozen as of his or her termination of employment or layoff and shall not increase or
decrease as the result of additional years of Credited Service, increases or decreases in Annual
Earnings, Average Annual Earnings, or Social Security Wage Base or for any other reason.

	7.	 	Section 8.1 is amended to add the following language to the end thereof effective June 30,
2010:

Page 4 of Exhibit 10.2

 

     Notwithstanding the foregoing, effective June 30, 2010, a Participant shall not be eligible
for the Disability Benefit described in this Article if such Participant terminates employment for
a reason other than due to total and permanent disability, whether before or after June 30, 2010,
and is rehired:

	 	(a)	 	after June 30, 2010 and
	 
	 	(b)	 	more than 60 days after the original termination of employment or, in the
case of a reduction in force, elimination of the Participant’s position or layoff and
recall as defined in the Ampac Fine Chemicals LLC Policies and Procedures, more than
one year after the date of layoff or termination.

	8.	 	The first paragraph of Section 10.3 is amended to read as follows effective October 1, 2007:

	 
	 	 	At least thirty (30) and no more than ninety (90) days before the date with respect to
which a Participant’s benefit under this Plan commences to be paid in the form of a joint
and survivor annuity described in Section 10.1(a), such Participant shall be furnished, in
writing, (a) a general description of such joint and survivor annuity, (b) a general
description of the circumstances in which it will be provided, (c) notice of the
Participant’s right, prior to the commencement of benefits, to make an election to receive
his benefits in an optional form described in Section 10.2 (and the right to revoke such
election, together with an explanation of the effect of such revocation), (d) a general
description of the relative financial effect on a Participant’s benefits of an election to
receive benefits in a form other than the joint and survivor annuity provided in Section
10.1(a), and (e) a general description of the rights of the Participant’s Spouse

Page 5 of Exhibit 10.2

 

	 	 	under applicable provisions of the Internal Revenue Code pertaining to a Qualified
Election. At the same time the Participant also shall be furnished, or be advised of the
availability of, a written explanation of the terms and conditions of the joint and
survivor annuity described in Section 10.1(a), the financial effect upon the particular
Participant’s annuity of making an election to receive benefits in an optional form, and
the consequences of failing to defer a receipt of a distribution.

	9.	 	Section 10.7 is amended to read as follows effective January 1, 2007:

     10.7 Direct Rollovers.

     (a) Notwithstanding any provision of the Plan to the contrary that would otherwise
limit a Distributee’s election under this section, a Distributee may elect, at the time and
in the manner prescribed by the Pension Plan Committee, to have any portion of an Eligible
Rollover Distribution paid directly to an Eligible Retirement Plan specified by the
Distributee in a Direct Rollover.

     (b) Definitions. For purposes of this Section, the following terms shall have
the meanings set forth in this subsection:

     (1) “Eligible Rollover Distribution” means any distribution of all or any
portion of the balance to the credit of the Distributee, except that an Eligible
Rollover Distribution does not include: (i) any distribution of less than Two
Hundred Dollars; (ii) any distribution that is one of a series of substantially
equal periodic payments (not less frequently than annually) made for the life (or
life expectancy) of the Distributee or the joint lives (or joint life expectancies)
of the Distributee and the Distributee’s designated

Page 6 of Exhibit 10.2

 

Beneficiary, or for a specified period of ten years or more; (iii) any
distribution to the extent such distribution is required under Code section
401(a)(9); and (iv) prior to January 1, 2002 the portion of any distribution that
is not includible in gross income; and after December 31, 2001 the portion of any
distribution that is not includible as gross income but only if the Plan fails to
agree to separately account for such after-tax amounts and the earnings thereon.

     (2) “Eligible Retirement Plan” means an individual retirement account
described in Code section 408(a), an individual retirement annuity described in
Code section 408(b), an annuity plan described in Code section 403(a), or a
qualified trust described in Code section 401(a) that accepts the Distributee’s
Eligible Rollover Distribution. An Eligible Retirement Plan shall also mean an
annuity contract described in section 403(b) of the Code and an eligible plan under
section 457(b) of the Code which is maintained by a state, political subdivision of
a state, or any agency or instrumentality of a state or political subdivision of a
state and which agrees to separately account for amounts transferred into such plan
from this Plan.

     Effective January 1, 2008, Eligible Retirement Plan shall also include a Roth
IRA described in Code section 408A.

     With respect to distributions not includible in gross income, Eligible
Retirement Plan shall include only an individual retirement account described in
Code Section 408(a), an individual retirement

Page 7 of Exhibit 10.2

 

annuity described in Code Section 408(b), a defined contribution plan
described in Code section 401(a) and on an after January 1, 2007, any qualified
plan described in Code section 401(a) or annuity plan described in Code section
403(b).

     The definition of Eligible Retirement Plan shall also apply in the case of a
distribution to a surviving Spouse, or to a Spouse or former Spouse who is the
alternate payee under a qualified domestic relation order, as defined in section
414(p) of the Code. However, for the purpose of a distribution to a Distributee
who is a non-Spouse beneficiary, Eligible Retirement Plan shall only include an
individual retirement account described in Code section 408(a), an individual
retirement annuity described in Code section 408(b), or a Roth IRA described in
Code section 408A (collectively, “IRA”) that is established on behalf of the
non-Spouse Beneficiary and that will be treated as an inherited IRA pursuant to the
provisions of Code sections 402(c)(11) and 408(d)(3)(C)(ii).

     (3) “Distributee” means any Participant who is or was an Employee, and any
Beneficiary who is or was a Participant’s Spouse (including any former Spouse who
is an alternate payee under a qualified domestic relations order, as defined in
Code section 414(p) with regard to any spousal interests recognized or created
under the Plan. Notwithstanding any provision of this Section to the contrary,
effective as of January 1, 2010, Distributee shall also include a non-Spouse
Beneficiary of a deceased Participant.

Page 8 of Exhibit 10.2

 

     (4) “Direct Rollover” means a payment by the Plan to the Eligible Retirement
Plan specified by the Distributee.

	10.	 	Article XVIII is amended to read as follows effective October 1, 2007:

AMENDMENT

     The Plan or any portion of the Plan may be amended at any time by action of the Board of
Directors. However, no amendment shall be made at any time, the effect of which would be:

     (a) To cause any assets of the Trust Fund, at any time prior to the satisfaction of
all liabilities with respect to participants and their beneficiaries in the Plan, to be
used for or diverted to purposes other than for the exclusive benefit of such participants
and their beneficiaries;

     (b) To increase the duties and liabilities of the Trustee without its written consent.

     (c) No amendment to the Plan shall have the effect of decreasing a Participant’s
accrued benefit (within the meaning of Section 411(d)(6) of the Code) with respect to
service performed prior to the effective date of the amendment.

     (d) No amendment to the Plan shall have the effect of eliminating or reducing an early
retirement benefit or a subsidy that continues after retirement, or eliminating an optional
form of benefit.

     For purposes of this Section, a Plan amendment that has the effect of (a) eliminating or
reducing an early retirement benefit or retirement-type subsidy, or (b) eliminating an optional
form, with respect to benefits attributable to service before the amendment shall be

Page 9 of Exhibit 10.2

 

treated as reducing a Participant’s Accrued Benefit. In the case of a retirement-type
subsidy, the preceding sentence shall apply only with respect to a Participant who satisfies
(either before or after the amendment) the pre-amendment conditions for the subsidy.
Notwithstanding the preceding, the Accrued Benefit of a Participant, early retirement benefit,
retirement-type subsidy, or optional form of benefit may be reduced to the extent permitted under
Code section 412(c)(8) (as it read before the first day of the 2008 Plan Year) or Code section
412(d)(2) (as it reads for Plan Years beginning on and after January 1, 2008), or to the extent
permitted under the Sections 1.411(d)-3 and 1.411(d)-4 of the U. S. Treasury Department
regulations.

     Notwithstanding anything herein to the contrary, the Plan or any portion thereof may be
amended at any time, if necessary, to conform to the provisions of the Employee Retirement Income
Security Act of 1974 and the Internal Revenue Code or any amendment thereto or regulations issued
pursuant thereto. The Board of Directors may delegate its authority to amend the Plan, as set
forth herein, to any person, committee or other entity, subject to such terms or limitations which
the Board, in its complete discretion, may impose.

     Effective August 9, 2006, in the event that the Plan is amended to include a vesting schedule
that is less favorable than the Plan’s previous vesting schedule, each Participant who has had his
Vesting Percentage computed under the more favorable vesting schedule, shall (i) have the vesting
percentage of his Accrued Benefit (accrued as of the date of the amendment) computed in accordance
with the vesting schedule prior to the amendment and (ii) have the vesting percentage of his
Accrued Benefit (accrued after

Page 10 of Exhibit 10.2

 

the date of the amendment) computed in accordance with the vesting schedule adopted by the
amendment.

     If the Plan’s vesting schedule is amended or the Plan is amended in any way that directly or
indirectly affects the computation of a Participant’s nonforfeitable benefit, each Participant with
at least three (3) years of Cumulative Service with the Company may elect, within a reasonable
period after the adoption of the amendment or change, to have his nonforfeitable benefit computed
under the Plan without regard to such amendment or change. The period during which the election
may be made shall commence at the date the amendment is adopted or deemed to be made, and shall end
on the latest of:

     (A) sixty (60) days after the amendment is adopted,

     (B) sixty (60) days after the amendment becomes effective, or

     (C) sixty (60) days after the Participant is issued written notice of
amendment by the Company.

	11.	 	Section 20.15 is amended to add the following language to the end thereof effective
January 1, 2007:

	 
	 	Effective for deaths on and after January 1, 2007, for purposes of determining Vesting
Service or any other additional benefit (other than service used to determine the
Participant’s Accrued Benefit) provided under the Plan, a Participant who dies while
performing qualified military service (as defined in Code section 414(u)) shall be deemed
to have resumed employment with the Employer on the day immediately preceding his death and
to have terminated employment on account of his death.

	 
	11.	 	A new Article XXIV is added to read as follows effective October 1, 2008:

Page 11 of Exhibit 10.2

 

LIMITATIONS BASED ON FUNDED STATUS

     24.1 Limitations Based on Funded Status of the Plan.

     Notwithstanding any provision of the Plan to the contrary, the following provisions shall
apply as required by Code section 436 effective for Plan Years beginning on or after January 1,
2008, except to the extent the exception under Code section 436(d)(4) applies:

     (a) In the event the Plan’s adjusted funding target attainment percentage for a Plan
Year is less than 60 percent, benefit accruals shall cease during the period benefit
accruals are restricted under the provisions of Code section 436(e). However, in
determining whether benefit accruals will cease under this subsection for calendar year
2009, the adjusted funding target attainment percentage for 2008 shall be substituted for
the adjusted funding target attainment percentage for 2009 in the preceding sentence, if
greater.

     (b) In the event the Plan’s adjusted funding target attainment percentage for a Plan
Year falls below the threshold defined under Code section 436(d)(1) and/or (3), the Trustee
shall, as directed by the Plan Administrator, cease payment of any prohibited payment
during the period specified in, and to the extent necessary to comply with the provisions
of Code section 436(d).

     (c) In no event shall a prohibited payment be paid during any period the Employer is a
debtor in a case under Title 11, United States Code, or similar federal or state law, to
the extent necessary to comply with the provisions of Code section 436(d)(2).

     (d) In no event shall an amendment that has the effect of increasing liabilities of
the Plan by reason of increases in benefits, establishment of new

Page 12 of Exhibit 10.2

 

benefits, changing the rate of benefit accrual, or changing the rate at which benefits
become nonforfeitable become effective during the period such amendment would violate the
provisions of Code section 436(c).

     (e) If an optional form of benefit that is otherwise available under the terms of the
Plan is not available because of the application of Code section 436(d)(1) or (2), the
Participant or Beneficiary, as applicable, shall be eligible to elect another form of
benefit available under the Plan or to defer payment to a later date (to the extent
permitted under applicable qualification requirements).

     (f) If an optional form of benefit that is otherwise available under the terms of the
Plan is not available because of the application of Code section 436(d)(3), a Participant
or Beneficiary, as applicable, shall be eligible to defer his entire payment to a later
date (to the extent permitted under applicable qualification requirements) or to bifurcate
the benefit into unrestricted and restricted portions. If such Participant or Beneficiary
elects to bifurcate the benefit, the Participant or Beneficiary shall be eligible to elect,
with respect to the unrestricted portion of the benefit, any optional form otherwise
available under the Plan with respect to the Participant’s or Beneficiary’s entire benefit
and in such a case, if the Participant or Beneficiary elects payment of the unrestricted
portion of the benefit in the form of a prohibited payment, the Participant or Beneficiary
shall be eligible to elect:

     (i) to receive payment of the restricted portion of the benefit in any
optional form of benefit under the Plan that is not a prohibited payment and that
would have been permitted with respect to the Participant’s or Beneficiary’s entire
benefit, or

Page 13 of Exhibit 10.2

 

     (ii) to defer commencement of the restricted portion of his benefit until the
restrictions on prohibited payments lapse and receive said amount in any optional
form of payment available under the Plan, but in either case only if the Plan
Administrator has determined in a consistent and nondiscriminatory manner that
Participants and Beneficiaries may defer only the restricted portion of his
benefit. Such election shall be subject to any other applicable qualification
requirements and shall be made in accordance with all Plan rules regarding
elections of forms of benefit. The deferred commencement date of the restricted
portion shall be treated as a new Annuity Starting Date.

     For purposes of this Section, the terms “adjusted funding target attainment percentage,”
“prohibited payment,” “unrestricted portion of the benefit,” and “restricted portion of the
benefit” shall have the meanings given under Code section 436, the regulations thereunder, and any
applicable Internal Revenue Service guidance.

     In the event that the provisions of this Section 24.1 or any part thereof cease to be required
by law as a result of subsequent legislation or otherwise, this Section or any applicable part
thereof shall be ineffective without the necessity of further amendments to the Plan.

     24.2 Limitations on Unpredictable Contingent Event Benefit.

     Notwithstanding any provision of the Plan to the contrary, with respect to Plan Years
beginning on or after January 1, 2008, if a Participant or Beneficiary is entitled to an
“unpredictable contingent event benefit” (as defined under Code section 436(b)) with respect to any
event occurring during any Plan Year, such unpredictable contingent event

Page 14 of Exhibit 10.2

 

benefit shall not be provided to such Participant or Beneficiary if the Plan’s adjusted
funding target attainment percentage (as defined in Section 24.1) for such Plan Year is less than
60 percent or would be less than 60 percent taking into account such occurrence; provided, however,
that such unpredictable contingent event benefit shall become payable if and when the Plan meets
the exemption under Code section 436(b)(2).

     In the event that the provisions of this Section 24.2 or any part thereof cease to be required
by law as a result of subsequent legislation or otherwise, this Section or any applicable part
thereof shall be ineffective without the necessity of further amendments to the Plan.

IN WITNESS WHEREOF, American Pacific Corporation, Inc. has caused this instrument to be executed
this 28th day of June, 2010.

	 	 	 	 	 	 	 

	 	 	American Pacific Corporation	 	 
	 
	 	 	 	 	 	 
	ATTEST: (SEAL)

	 	By:
	 	/s/ JOSEPH CARLEONE
 

	 	 

Page 15 of Exhibit 10.2

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