Keystone Helicopter Corporation, A Subsidiary of Sikorsky Aircraft

Employee Benefit Summary

Benefits coverage for a new hire begins on the employee’s 31st day of employment.

UTC Choice

The following benefits are included:

Medical- Provides quality medical plans to help protect employees and their families from the financial burden of high medical costs.

Dental- Offers several dental plan options, so employees can choose the level of coverage that’s best for them and their families.

Health Care Reimbursement Account- Lets employees set aside pre-tax money to help pay for eligible health care expenses that aren’t reimbursed under a medical and/or dental plan.

Dependent Day Care Reimbursement Account- Lets employees set aside pre-tax money to help pay for eligible dependent day care expenses.

Employee Life Insurance, Dependent Life Insurance and Accidental Death and Dismemberment (AD&D) Insurance- Provide different levels of coverage to help protect employees and their families from the financial impact of a catastrophic injury and/or death.

Vacation Purchase- Offers employees, with some restrictions, the opportunity to buy one to five additional days of vacation with pre-tax dollars.

Disability

UTC offers an integrated sick pay, short-term disability/STD and long-term disability/LTD Plan that provide income if employees become disabled while employed by the company. Sick pay continues employees’ full salary with the annual benefit increasing with length of service.

STD benefits begin right after sick pay benefits cease and may continue for as long as employees are disabled, up to a maximum of 26 weeks which is when long-term disability (LTD) benefits can begin. LTD will continue through age 65 as long as certification requirements are met.

Paid Time Off

Earned Vacation - Except for the year employees are hired, the number of earned vacation days employees are entitled to per calendar year will be based on their Continuous Service Date as of December 31 of that year.

Newly hired employees are entitled to vacation days based upon their “month of hire”; hired in Jan. – 10 days, in Feb. – 9 days, in Mar. – 8 days, in Apr. – 7 days, in May – 6 days, in June – 5 days, in July – 4 days, in Aug. – 3 days, in Sept. – 2 days, in Oct. – 1 day, in Nov. or Dec. – 0 days.

Newly hired employees must complete three (3) months of continuous service before taking any earned vacation. Vacation must be scheduled with supervisory approval. Vacation carryover is not allowed.

In the year of employees’ 1st anniversary, they are eligible for 10 days vacation; in the 8th year – 15 days; in the 18th year – 20 days; in the 25th year – 25 days.

Paid Time Off (Cont’d)

Personal Absence with Permission Days- Employees may arrange for up to 5 days off for personal business that cannot be conducted outside normal working hours.

Jury Duty- UTC will continue to pay employees during their absence if they are called to jury duty. (Maximum of 30 days per calendar year)

Bereavement Leave- Employees may request time off due to a death in the family. The absence will be paid in full for up to three business days if the deceased was an immediate family member.

Military Leave- UTC provides benefits and pay to employees who are members of the National Guard or Reserve members of the US Armed Services and who will be on military duty for annual encampment or who are activated by the state or federal government in an emergency. Pay and benefits are based upon length of military duty.

Holidays- Employees are eligible for the following recognized holidays: New Year’s Day, Good Friday, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, the day following Thanksgiving, Christmas Eve and Christmas Day.

Matching 401K Plan

UTC helps employees save for the future with the Employee Savings Plan. Employees can save for retirement and other long-term goals by contributing up to 40% of their pay on a pretax and/or after-tax basis. After employees complete one year of service, UTC matches 60%, with UTC Stock, of the first 6% of the funds employees contribute. Employees are eligible to participate in the plan anytime after their date of hire as an employee of UTC.

Cash Balance Plan

UTC sponsors a Cash Balance Plan that can supplement a retiree's income from the savings plan, Social Security and personal assets. An employee is vested in this benefit by completing 5 years of continuous service. In general, your benefits grow with two types of credits from UTC: pay credits and interest credits. At the end of each month, UTC will allocate pay and interest credits to your cash balance account.

Pay credits are determined by age and are simply a percentage of pay. Depending on your age, your pay credit will be between 3% and 8% of your eligible earnings, based on age. Interest credits are based on the 30 year U.S. Treasury bond yield, and are updated every year.

Employee Scholar Program

UTC pays 100 % of the costs for employees who go back to a regionally accredited school to obtain a degree. The company pays for registration, tuition, fees and books - all paid up front. Employees can enroll in classes and obtain a degree in any field, whether or not it is related to their jobs. Students receive up to half of their classroom time as paid time off for studying, up to three hours per week. Employees who attain a bachelor’s or graduate degree will be awarded the number of shares of UTC common stock equal to $10,000.00. Those who attain an associate's degree will be awarded the number of shares of UTC common stock equal to $5,000.00, and additionally will be awarded the number of shares of UTC common stock equal to $5,000.00 if they go on to complete their bachelor's.