Exhibit 10.2
AMENDMENT TO THE HAWKER
BEECHCRAFT
CORPORATION RETIREMENT INCOME
PLAN FOR
SALARIED EMPLOYEES
THIS AMENDMENT
(“Amendment”) is made
this 4th day of June, 2009, to the Hawker Beechcraft Corporation
Retirement Income Plan for Salaried Employees (the
“Plan”) by Hawker Beechcraft Corporation (the
“Company”), as sponsor of the Plan.
WHEREAS, the Company has reserved the right to amend the
Plan; and
WHEREAS, the board of directors of the Company has
approved adoption of this Amendment.
NOW, THEREFORE,
the Plan is hereby amended as
follows:
1. PPA – Minimum Present
Value . Effective January 1, 2008, Paragraph 1 of Appendix
A to the Plan is amended in its entirety to read as
follows:
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1.
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Lump Sum
Payment Option . For
purposes of determining/converting to a lump-sum value, the
following factors will be used:
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(a)
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Rate of
Interest . For
determinations before January 1, 1999, the PBGC rates in
effect on the first day of the Plan Year for which the distribution
is made. For determinations after December 31, 1998 and before
January 1, 2008, the annual rate of interest on 30-year
Treasury securities as specified by the Commissioner for the month
of November preceding the Plan Year in which the distribution is
made. For determinations on and after January 1, 2008, the
adjusted first, second, and third segment rates as specified by the
Commissioner of Internal Revenue for the month of November
preceding the Plan Year in which the distribution
occurs.
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(b)
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Mortality . For determinations before January 1,
1999, the PBGC mortality rate table for healthy males with ages of
the Participant set back one year and ages of the spouse or Joint
Annuitant set back four years. For determinations after
December 31, 1998 and before December 31, 2002, the 1983
Group Annuity Mortality Table using a blend of fifty percent
(50%) of the male table and fifty percent (50%) of the
female table. For determinations on or after December 31, 2002
and before January 1, 2008, the 94 GAR/GATT 2003 Mortality
Table prescribed in Revenue Ruling 2001-62. For determinations on
and after January 1, 2008, the applicable mortality table
under Code Section 417(e)(3), as prescribed by the
Commissioner of Internal Revenue from time to time.
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2. Affiliated Employer .
Effective January 1, 2009, Section 1.08 is amended to
read as follows:
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1.08
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“Affiliated Employer” shall mean the
Employer and any other entity while it is a member of a
“controlled group of corporations,” a group under
“common control,” or an “affiliated service
group” with the Employer, all as determined under Code
Sections 414(b), (c), (m), (o), or, solely for purposes of
Section 6.01, the rules set forth in Code Section 415(h).
Raytheon Company ceased to be an Affiliated Employer upon the
closing of the divestiture of Raytheon Aircraft Company by Raytheon
Company on March 26, 2007.
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3. Board of Directors .
Effective January 1, 2009, Section 1.11 is amended to
read as follows:
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1.11
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“Board” or “Board of
Directors” shall mean the Board of Directors of the Plan
Sponsor, except that any action which could be taken by the Board
may also be taken by a duly authorized committee of the
Board.
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4. Employer . Effective
January 1, 2009, Section 1.27 is amended to read as
follows:
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1.27
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“Employer” shall mean Hawker
Beechcraft Corporation (formerly Raytheon Aircraft Company) and any
other Affiliated Employer which, with the consent of the Committee,
has adopted this Plan for its Eligible Employees.
“Employer” when used in this Plan shall refer to such
adopting entities either individually or collectively, as the
context may require.
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5. Estimated Primary Social
Security Benefit . Effective January 1, 2009, the last
paragraph of Section 1.30 is amended in its entirety to read
as follows:
In lieu of using an estimated
compensation for a particular period, the Participant may elect to
have his Estimated Primary Social Security Benefit based on the
Participant’s actual wage history as furnished by the Social
Security Administration or such other source as the Employer deems
to be reliable. The Participant must, however, supply the Employer
with satisfactory documentation of his actual wage history within
one year of time following the later of his termination of
employment (initial termination of employment, in the case of a
rehired employee) or the date upon which the Employer notifies him
of the benefit, if any, that he is entitled to receive under the
Plan. If the Participant elects to furnish his actual wage history
after the date that his Accrued Benefit has been determined by the
Employer, the recalculated Estimated Primary Social Security
Benefit shall not cause a reduction to his Accrued
Benefit.
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6. Participating Employer .
Effective January 1, 2009, Section 1.47 is amended to
replace references to “Raytheon Aircraft Company” and
“Raytheon Aircraft Services, Inc.” with, respectively,
“Hawker Beechcraft Corporation (formerly Raytheon Aircraft
Company)” and “Hawker Beechcraft Services, Inc.
(formerly Raytheon Aircraft Services, Inc.).”
7. Plan . Effective
January 1, 2009, Section 1.51 is amended to read as
follows:
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1.51
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“Plan” shall mean this plan
designated as the Hawker Beechcraft Corporation Retirement Income
Plan for Salaried Employees.
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8. Plan Sponsor . Effective
January 1, 2009, Section 1.52 is amended to read as
follows:
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1.52
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“Plan
Sponsor” shall mean Hawker Beechcraft Corporation (formerly
Raytheon Aircraft Company).
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9. Salaried Plan Employee .
Effective January 1, 2009, Section 1.61 is amended to
replace references to “Raytheon Aircraft Company” and
“Raytheon Aircraft Services, Inc.” with, respectively,
“Hawker Beechcraft Corporation (formerly Raytheon Aircraft
Company)” and “Hawker Beechcraft Services, Inc.
(formerly Raytheon Aircraft Services, Inc.).”
10. Qualified Military
Service . Effective for military deaths occurring on or after
January 1, 2007, Section 2.07(b) is amended to read as
follows:
(b) For this purpose, the term
“Qualified Military Service” shall mean any service in
the uniformed services by any Employee if such Employee is entitled
to reemployment rights under Chapter 43 of title 38, United States
Code, provided, the Employee returns to employment, with the
Participating Employer within the applicable time limits prescribed
in Chapter 43 of title 38, United States Code. Notwithstanding any
provision of this Plan to the contrary, contributions, benefits,
and service credit with respect to Qualified Military Service shall
be provided in accordance with Section 414(u) of the Code.
Notwithstanding the preceding sentence, for purposes of Article 8,
to the extent required by the Heroes Earnings Assistance and Relief
Tax (HEART) Act of 2008, a return to employment is not required if
an Employee dies during what would otherwise be Qualified Military
Service; however, in that event the Qualified Military Service will
not be treated as Vesting Service or Credited Service.
11. Suspension of Benefits .
Effective March 1, 2009, Section 4.03 is amended to add
the following provision at the end thereof:
Notwithstanding the foregoing
provisions of this Section 4.03, benefits will not be
suspended for individuals receiving benefits under the Plan who
return to service or employment on or after March 1,
2009.
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12. Commencement of Retirement
Benefits . Effective January 1, 2009, Sections 5.02, 5.03,
5.04, and 5.05 are amended as follows to clarify the timing of
commencement of benefits:
a. Section 5.02 is amended in
its entirety to read as follows:
A Participant’s Normal
Retirement Benefit shall be a monthly annuity for the life of the
Participant, commencing upon the Participant’s Normal
Retirement Date, provided that the Participant has notified the
Committee (or its a
