exv10w2







Exhibit 10.2




AMENDMENT NO. 2



This amendment forms a part of Group Policy No. 587628 002 issued to the Policyholder:




Northrop Grumman Corporation



The entire policy is replaced by the policy attached to this amendment.



The effective date of these changes is October 4, 2007. The changes only apply to disabilities
which start on or after the effective date.



The policy’s terms and provisions will apply other than as stated in this amendment.



Dated at Portland, Maine on June 19, 2008.




	 	 	 	 	 
	 	Unum Life Insurance Company of America

 	 
	 	By

 	 	
	 	 	 
	 	Secretary 	 
	 


If this amendment is unacceptable, please sign below and return this amendment to Unum Life
Insurance Company of America at Portland, Maine within 90 days of June 19, 2008.



YOUR FAILURE TO SIGN AND RETURN THIS AMENDMENT BY THAT DATE WILL CONSTITUTE ACCEPTANCE OF THIS
AMENDMENT.




Northrop Grumman Corporation




	 	 	 	 	 
	By
	 	 	 	 
	 

	 	 

	 	 
	Signature and Title of Officer	 	 






	 	 	 	 	 
	C.AMEND-1

	 	AMEND-1 (10/4/2007)
	 	 







 









 








	 	 	 
	

	 	GROUP INSURANCE POLICY

NON-PARTICIPATING






POLICYHOLDER:
Northrop Grumman Corporation




POLICY
NUMBER: 587628 002




POLICY
EFFECTIVE DATE:   July 1, 2006




POLICY ANNIVERSARY DATE:  July 1




GOVERNING JURISDICTION: Virginia



Unum Life Insurance Company of America (referred to as Unum) will provide benefits under this
policy. Unum makes this promise subject to all of this policy’s provisions.



The policyholder should read this policy carefully and contact Unum promptly with any questions.
This policy is delivered in and is governed by the laws of the governing jurisdiction and to the
extent applicable by the Employee Retirement Income Security Act of 1974 (ERISA) and any
amendments. This policy consists of:




–      all policy provisions and any amendments and/or attachments issued;




–      employees’ signed applications; and




–      the certificate of coverage.



This policy may be changed in whole or in part. Only an officer or a registrar of Unum can approve
a change. The approval must be in writing and endorsed on or attached to this policy. No other
person, including an agent, may change this policy or waive any part of it.



Signed for Unum at Portland, Maine on the Policy Effective Date.




	 	 	 
	
	 	
	President
	 	Secretary






Unum Life Insurance Company of America

2211 Congress Street

Portland, Maine 04122




Copyright 1993, Unum Life Insurance Company of America




	 	 	 	 	 
	C.FP-1

	 	C.FP-1 (10/4/2007)
	 	 






 









 





TABLE OF CONTENTS




	 	 	 	 	 
	BENEFITS AT A GLANCE 
	 	B@G-LTD-1
	LONG TERM DISABILITY PLAN 
	 	B@G-LTD-1
	CLAIM INFORMATION 
	 	LTD-CLM-1
	LONG TERM DISABILITY 
	 	LTD-CLM-1
	POLICYHOLDER PROVISIONS 
	 	EMPLOYER-1
	CERTIFICATE SECTION 
	 	CC.FP-1
	GENERAL PROVISIONS 
	 	EMPLOYEE-1
	LONG TERM DISABILITY 
	 	LTD-BEN-1
	BENEFIT INFORMATION 
	 	LTD-BEN-1
	OTHER BENEFIT FEATURES 
	 	LTD-OTR-1
	OTHER SERVICES 
	 	SERVICES-1
	GLOSSARY 
	 	GLOSSARY-1






TOC-1 (10/4/2007)




 









 





BENEFITS AT A GLANCE




LONG TERM DISABILITY PLAN



This long term disability plan provides financial protection for you by paying a portion of your
income while you are disabled. The amount you receive is based on the amount you earned before
your disability began. In some cases, you can receive disability payments even if you work while
you are disabled.




EMPLOYER’S ORIGINAL PLAN

EFFECTIVE DATE: July 1, 2006




POLICY
NUMBER: 587628 002




ELIGIBLE GROUP(S):




     All elected or appointed officers in active employment who are elected by the Board of
Directors



MINIMUM HOURS REQUIREMENT:




     Employees must be working at least 20 hours per week.



WAITING PERIOD:




     For employees in an eligible group on or before July 1, 2006: None



     For employees entering an eligible group after July 1, 2006: None



CREDIT PRIOR SERVICE:





Unum will apply any prior period of work with your Employer toward the pre-existing
condition period for the purpose of satisfying the pre-existing condition period.



WHO PAYS FOR THE COVERAGE:




     Your Employer pays the cost of your coverage.



ELIMINATION PERIOD:




     6 months


Benefits begin the day after the elimination period is completed.




MONTHLY BENEFIT:




     65% of monthly earnings to a maximum benefit of $15,000 per month.




Your payment may be reduced by deductible sources of income and disability earnings. Some
disabilities may not be covered or may have limited coverage under this plan.



MAXIMUM PERIOD OF PAYMENT:




	 	 	 
	Age at Disability	 	Maximum Period of Payment
	Less than age 60

	 	To age 65, but not less than 5 years
	Age 60

	 	60 months
	Age 61

	 	48 months
	Age 62

	 	42 months
	Age 63

	 	36 months
	Age 64

	 	30 months
	Age 65

	 	24 months
	Age 66

	 	21 months
	Age 67

	 	18 months
	Age 68

	 	15 months
	Age 69 and over

	 	12 months






B@G-LTD-1 (10/4/2007)




 









 




No premium payments are required for your coverage while you are receiving payments under this
plan.



OTHER FEATURES:




     Continuity of Coverage



     Minimum Benefit



     Pre-Existing: 3/12



     Survivor Benefit


The above items are only highlights of this plan. For a full description of your coverage,
continue reading your certificate of coverage section.




B@G-LTD-2 (10/4/2007)




 









 








CLAIM INFORMATION




LONG TERM DISABILITY




WHEN DO YOU NOTIFY UNUM OF A CLAIM?





We encourage you to notify us of a claim as soon as possible, so that a claim decision can be
made in a timely manner. Telephonic notice as authorized by us or written notice of claim
should be provided within 30 days after the date your disability begins. However, you must
provide Unum written proof of your claim no later than 90 days after your elimination period.
If it is not possible to give proof within 90 days, it must be given no later than 1 year after
the time proof is otherwise required except in the absence of legal capacity.




If you choose to file a written notice of claim, the claim form is available from your employer,
or you can request a claim form from us. If you do not receive the form from Unum within 15
days of your request, send Unum written proof of claim without waiting for the form.




You must notify us immediately when you return to work in any capacity.



HOW DO YOU FILE A CLAIM?





You may file notice of claim by telephonic means. The telephone number is available through
your employer. You will be required to sign an authorization form in order for Unum to obtain
medical information from your attending physician. Should Unum be unable to obtain your medical
information, we will send a letter and appropriate forms to you for completion to be returned to
us by the date determined in the letter.




If you choose to file written notice of claim, you and your employer must complete your own
sections of the claim form and then give it to your attending physician. Your physician should
complete his or her section of the form and send it directly to Unum.



WHAT INFORMATION IS NEEDED AS PROOF OF YOUR CLAIM?





Your proof of claim, provided at your expense, must show:




	 	–	 	that you are under the regular care of a physician;
	 
	 	–	 	the appropriate documentation of your monthly earnings;
	 
	 	–	 	the date your disability began;
	 
	 	–	 	the cause of your disability;
	 
	 	–	 	the extent of your disability, including restrictions and limitations preventing you
from performing your regular occupation; and
	 
	 	–	 	the name and address of any hospital or institution where you received treatment,
including all attending physicians.






We may request that you send proof of continuing disability indicating that you are under the
regular care of a physician. This proof, provided at your expense, must be received within 45
days of a request by us.




In some cases, you will be required to give Unum authorization to obtain additional medical
information and to provide non-medical information as part of your proof of



LTD-CLM-1 (10/4/2007)




 









 






claim, or proof of continuing disability. Unum will deny your claim, or stop sending you
payments, if the appropriate information is not submitted.



TO WHOM WILL UNUM MAKE PAYMENTS?




     Unum will make payments to you.



WHAT HAPPENS IF UNUM OVERPAYS YOUR CLAIM?




     Unum has the right to recover any overpayments due to:




	 	–	 	fraud;
	 
	 	–	 	any error Unum makes in processing a claim; and
	 
	 	–	 	your receipt of deductible sources of income.






You must reimburse us in full. We will determine the method by which the repayment is to be
made.




Unum will not recover more money than the amount we paid you.



LTD-CLM-2 (10/4/2007)




 









 








POLICYHOLDER PROVISIONS




WHAT IS THE COST OF THIS INSURANCE?




LONG TERM DISABILITY





The initial premium for each plan is based on the initial rate(s) shown in the Rate Information
Amendment(s).




WAIVER OF PREMIUM




Unum does not require premium payments for an insured while he or she is receiving Long Term
Disability payments under this plan.




INITIAL RATE GUARANTEE




Refer to the Rate Information Amendment(s).



WHEN IS PREMIUM DUE FOR THIS POLICY?




	 	 	 	 	 
	 

	 	Premium Due Dates:
	 	Premium due dates are based on the Premium Due Dates shown in the Rate
Information Amendment(s).







The Policyholder must send all premiums to Unum on or before their respective due date. The
premium must be paid in United States dollars.



WHEN ARE INCREASES OR DECREASES IN PREMIUM DUE?





Premium increases or decreases, for other than salary changes, which take effect during a plan
month are adjusted and due on the next premium due date following the change. Changes will be
pro-rated daily. Premium due dates are shown in the Rate Information Amendment.




Premium increases or decreases due to salary changes are to be adjusted on the first day of the
next plan year.




If premiums are paid on other than a monthly basis, premiums for increases and decreases will
result in a monthly pro-rated adjustment on the next premium due date.




Unum will only adjust premium for the current plan year and the prior plan year. In the case of
fraud, premium adjustments will be made for all plan years.



WHAT INFORMATION DOES UNUM REQUIRE FROM THE POLICYHOLDER?





The Policyholder must provide Unum with the following on a regular basis:




	 	–	 	information about employees:






	 	•	 	who are eligible to become insured;
	 
	 	•	 	whose amounts of coverage change; and/or
	 
	 	•	 	whose coverage ends;






	 	–	 	occupational information and any other information that may be required to manage a
claim; and
	 
	 	–	 	any other information that may be reasonably required.





EMPLOYER-1 (10/4/2007)




 









 






Policyholder records that, in Unum’s reasonable opinion, have a bearing on this policy will be
available for review by Unum within 30 days of Unum’s request.




Clerical error or omission by Unum will not:




	 	–	 	prevent an employee from receiving coverage;
	 
	 	–	 	affect the amount of an insured’s coverage; or
	 
	 	–	 	cause an employee’s coverage to begin or continue when the coverage would not
otherwise be effective.





WHO CAN CANCEL THIS POLICY OR A PLAN UNDER THIS POLICY?




     This policy or a plan under this policy can be cancelled:




	 	–	 	by Unum; or
	 
	 	–	 	by the Policyholder.





     Unum may cancel or offer to modify this policy or a plan if:




	 	–	 	there is less than 25% participation of those eligible employees who pay all or part
of their premium for a plan; or
	 
	 	–	 	there is less than 100% participation of those eligible employees for a Policyholder
paid plan;
	 
	 	–	 	the Policyholder does not promptly provide Unum with information that is reasonably
required;
	 
	 	–	 	the Policyholder fails to perform any of its obligations that relate to this policy;
	 
	 	–	 	fewer than 25 employees are insured under a plan;
	 
	 	–	 	the Policyholder fails to pay any premium within the 60 day grace period.






If Unum cancels this policy or a plan for reasons other than the Policyholder’s failure to pay
premium, a written notice will be delivered to the Policyholder at least 120 days prior to the
cancellation date.




If the premium is not paid during the grace period, the policy or plan will terminate
automatically at the end of the grace period. The Policyholder is liable for premium for
coverage during the grace period. The Policyholder must pay Unum all premium due for the full
period each plan is in force.




The Policyholder may cancel this policy or a plan by written notice delivered to Unum at least
31 days prior to the cancellation date. When both the Policyholder and Unum agree, this policy
or a plan can be cancelled on an earlier date. If Unum or the Policyholder cancels this policy
or a plan, coverage will end at 12:00 midnight
on the last day of coverage.


If this policy or a plan is cancelled, the cancellation will not affect a payable claim.


WHAT HAPPENS TO AN EMPLOYEE’S COVERAGE UNDER THIS POLICY WHILE HE OR SHE IS ON A FAMILY AND MEDICAL
LEAVE OF ABSENCE?





We will continue the employee’s coverage in accordance with the policyholder’s Human Resource
policy on family and medical leaves of absence if premium payments continue and the policyholder
approved the employee’s leave in writing.



EMPLOYER-2 (10/4/2007)




 









 






Coverage continues to the end of the month plus four additional months from the day your leave
begins for Basic Long Term Disability.




If the policyholder’s Human Resource policy doesn’t provide for continuation of an employee’s
coverage during a family and medical leave of absence, the employee’s coverage will be
reinstated when he or she returns to active employment.



     We will not:




	 	–	 	apply a new waiting period;
	 
	 	–	 	apply a new pre-existing conditions exclusion; or
	 
	 	–	 	require evidence of insurability.





DIVISIONS, SUBSIDIARIES OR AFFILIATED COMPANIES INCLUDE:





NAME/LOCATION (CITY AND STATE)




Refer to the Northrop Grumman Account Structure Document that is located in the contract file
for a listing of names and locations approved by Unum.



EMPLOYER-3 (10/4/2007)




 









 








CERTIFICATE SECTION



Unum Life Insurance Company of America (referred to as Unum) welcomes you as a client.



This is your certificate of coverage as long as you are eligible for coverage and you become
insured. You will want to read it carefully and keep it in a safe place.



Unum has written your certificate of coverage in plain English. However, a few terms and
provisions are written as required by insurance law. If you have any questions about any of the
terms and provisions, please consult Unum’s claims paying office. Unum will assist you in any way
to help you understand your benefits.



If the terms and provisions of the certificate of coverage (issued to you) are different from the
policy (issued to the policyholder), the policy will govern. Your coverage may be cancelled or
changed in whole or in part under the terms and provisions of the policy.



The policy is delivered in and is governed by the laws of the governing jurisdiction and to the
extent applicable by the Employee Retirement Income Security Act of 1974 (ERISA) and any
amendments. When making a benefit determination under the policy, Unum has discretionary authority
to determine your eligibility for benefits and to interpret the terms and provisions of the policy.



For purposes of effective dates and ending dates under the group policy, all days begin at 12:01
a.m. and end at 12:00 midnight at the Policyholder’s address.




Unum Life Insurance Company of America

2211 Congress Street

Portland, Maine 04122




CC.FP-1 (10/4/2007)




 









 








GENERAL PROVISIONS




WHAT IS THE CERTIFICATE OF COVERAGE?





This certificate of coverage is a written statement prepared by Unum and may include
attachments. It tells you:




	 	–	 	the coverage for which you may be entitled;
	 
	 	–	 	to whom Unum will make a payment; and
	 
	 	–	 	the limitations, exclusions and requirements that apply within a plan.






Unum will provide your Employer with a certificate of coverage for delivery to each insured.



WHEN ARE YOU ELIGIBLE FOR COVERAGE?





If you are working for your Employer in an eligible group, the date you are eligible for
coverage is the later of:




	 	–	 	the plan effective date; or
	 
	 	–	 	the date you enter an eligible group.





WHEN DOES YOUR COVERAGE BEGIN?





When your Employer pays 100% of the cost of your coverage under a plan, you will be covered at
12:01 a.m. on the date you are eligible for coverage.


WHAT IF YOU ARE ABSENT FROM WORK ON THE DATE YOUR COVERAGE WOULD NORMALLY BEGIN?





If you are absent from work due to injury, sickness or temporary leave of absence, your coverage
will begin on the date you return to active employment.



ONCE YOUR COVERAGE BEGINS, WHAT HAPPENS IF YOU ARE TEMPORARILY NOT WORKING?





If you are on a leave of absence, and if premium is paid, you will be covered through the end of
the month that immediately follows the month in which your leave of absence begins.



WHEN WILL CHANGES TO YOUR COVERAGE TAKE EFFECT?





Once your coverage begins, any increased or additional coverage due to a change in your monthly
earnings or due to a plan change requested by your Employer will take effect immediately if you
are in active employment or if you are on a covered leave of absence. If you are not in active
employment due to injury or sickness, any increased or additional coverage will begin on the
date you return to active

employment.




Any decrease in coverage will take effect immediately but will not affect a payable claim that
occurs prior to the decrease.



EMPLOYEE-1 (10/4/2007)




 









 





WHEN DOES YOUR COVERAGE END?




     Your coverage under the policy or a plan ends on the earliest of:




	 	–	 	the date the policy or a plan is cancelled;
	 
	 	–	 	the date you no longer are in an eligible group;
	 
	 	–	 	the date your eligible group is no longer covered;
	 
	 	–	 	the last day of the period for which you made any required contributions; or
	 
	 	–	 	the last day you are in active employment except as provided under the covered leave
of absence provision.






Unum will provide coverage for a payable claim which occurs while you are covered under the
policy or plan.



WHAT ARE THE TIME LIMITS FOR LEGAL PROCEEDINGS?





You can start legal action regarding your claim 60 days after proof of claim has been given and
up to 3 years from the time proof of claim is required, unless otherwise provided under federal
law.



HOW CAN STATEMENTS MADE IN YOUR APPLICATION FOR THIS COVERAGE BE USED?





Unum considers any statements you or your Employer make in a signed application for coverage a
representation and not a warranty. If any of the statements you or your Employer make are not
complete and/or not true at the time they are made, we can:




	 	–	 	reduce or deny any claim; or
	 
	 	–	 	cancel your coverage from the original effective date.






We will use only statements made in a signed application as a basis for doing this. A copy of
the statements will be provided to you, your beneficiary or personal representative. These
statements cannot be used to reduce or deny coverage if your coverage has been in force for at
least 2 years.




However, if the Employer gives us information about you that is incorrect, we will:




	 	–	 	use the facts to determine if you have coverage under the plan according to the policy
provisions and in what amounts; and
	 
	 	–	 	make a fair adjustment of the premium.




DOES THE POLICY REPLACE OR AFFECT ANY WORKERS’ COMPENSATION OR STATE DISABILITY INSURANCE?





The policy does not replace or affect the requirements for coverage by any workers’ compensation
or state disability insurance.



DOES YOUR EMPLOYER ACT AS YOUR AGENT OR UNUM’S AGENT?





For purposes of the policy, your Employer acts on its own behalf and not as your agent. Under
no circumstances will your Employer be deemed the agent of Unum.


EMPLOYEE-2 (10/4/2007)



 









 








LONG TERM DISABILITY




BENEFIT INFORMATION




HOW DOES UNUM DEFINE DISABILITY?




     You are disabled when Unum determines that:




	 	–	 	you are limited from performing the material and substantial duties of your regular
occupation due to your sickness or injury; and
	 
	 	–	 	you have a 20% or more loss in your indexed monthly earnings due to the same sickness
or injury.






After 24 months of payments, you are disabled when Unum determines that due to the same sickness
or injury, you are unable to perform the duties of any gainful occupation for which you are
reasonably fitted by education, training or experience.




The loss of a professional or occupational license or certification does not, in itself,
constitute disability.




We may require you to be examined by a physician, other medical practitioner and/or vocational
expert of our choice. Unum will pay for this examination. We can require an examination as
often as it is reasonable to do so. We may also require you to be interviewed by an authorized
Unum Representative.



HOW LONG MUST YOU BE DISABLED BEFORE YOU ARE ELIGIBLE TO RECEIVE BENEFITS?





You must be continuously disabled through your elimination period. Unum will treat your
disability as continuous if your disability stops for 30 days or less during the elimination
period. The days that you are not disabled will not count toward your elimination period.




Your elimination period is 6 months.



CAN YOU SATISFY YOUR ELIMINATION PERIOD IF YOU ARE WORKING?





Yes. If you are working while you are disabled, the days you are disabled will count toward
your elimination period.



WHEN WILL YOU BEGIN TO RECEIVE PAYMENTS?





You will begin to receive payments when we approve your claim, providing the elimination period
has been met and you are disabled. We will send you a payment monthly for any period for which
Unum is liable.



HOW MUCH WILL UNUM PAY YOU IF YOU ARE DISABLED?




     We will follow this process to figure your payment:




	 	1.	 	Multiply your monthly earnings by 65%.
	 
	 	2.	 	The maximum monthly benefit is $15,000.
	 
	 	3.	 	Compare the answer from Item 1 with the maximum monthly benefit. The lesser of these
two amounts is your gross disability payment.




LTD-BEN-1 (10/4/2007)



 









 









	 	4.	 	Subtract from your gross disability payment any deductible sources of income.





     The amount figured in Item 4 is your monthly payment.



WHAT ARE YOUR MONTHLY EARNINGS?





Base Earnings as represented in the base earnings amount column on the employees pay check


WHAT WILL WE USE FOR MONTHLY EARNINGS IF YOU BECOME DISABLED DURING A COVERED LEAVE OF ABSENCE?





If you become disabled while you are on a covered leave of absence, we will use your monthly
earnings from your Employer in effect just prior to the date your absence begins.



HOW MUCH WILL UNUM PAY YOU IF YOU ARE DISABLED AND WORKING?





We will send you the monthly payment if you are disabled and your monthly disability earnings,
if any, are less than 20% of your indexed monthly earnings, due to the same sickness or injury.




If you are disabled and your monthly disability earnings are 20% or more of your indexed monthly
earnings, due to the same sickness or injury, Unum will figure your payment as follows:




During the first 12 months of payments, while working, your monthly payment will not be reduced
as long as disability earnings plus the gross disability payment does not exceed 100% of indexed
monthly earnings.




	 	1.	 	Add your monthly disability earnings to your gross disability payment.
	 
	 	2.	 	Compare the answer in Item 1 to your indexed monthly earnings.






If the answer from Item 1 is less than or equal to 100% of your indexed monthly earnings, Unum
will not further reduce your monthly payment.




If the answer from Item 1 is more than 100% of your indexed monthly earnings, Unum will subtract
the amount over 100% from your monthly payment.




After 12 months of payments, while working, you will receive payments based on the percentage of
income you are losing due to your disability.




	 	1.	 	Subtract your disability earnings from your indexed monthly earnings.
	 
	 	2.	 	Divide the answer in Item 1 by your indexed monthly earnings. This is your percentage
of lost earnings.
	 
	 	3.	 	Multiply your monthly payment by the answer in Item 2.





     This is the amount Unum will pay you each month.




During the first 24 months of disability payments, if your monthly disability earnings exceed
80% of your indexed monthly earnings, Unum will stop sending you payments and your claim will
end.



LTD-BEN-2 (10/4/2007)




 









 






Beyond 24 months of disability payments, if your monthly disability earnings exceed 60% of your
indexed monthly earnings, Unum will stop sending you payments and your claim will end.




Unum may require you to send proof of your monthly disability earnings at least quarterly. We
will adjust your payment based on your quarterly disability earnings.




As part of your proof of disability earnings, we can require that you send us appropriate
financial records which we believe are necessary to substantiate your income.




After the elimination period, if you are disabled for less than 1 month, we will send you 1/30
of your payment for each day of disability.



HOW CAN WE PROTECT YOU IF YOUR DISABILITY EARNINGS FLUCTUATE?





If your disability earnings routinely fluctuate widely from month to month, Unum may average
your disability earnings over the most recent 3 months to determine if your claim should
continue.




If Unum averages your disability earnings, we will not terminate your claim unless:




	 	–	 	During the first 24 months of disability payments, the average of your disability
earnings from the last 3 months exceeds 80% of indexed monthly earnings; or
	 
	 	–	 	Beyond 24 months of disability payments, the average of your disability earnings from
the last 3 months exceeds 60% of indexed monthly earnings.






We will not pay you for any month during which disability earnings exceed the amount allowable
under the plan.



WHAT ARE DEDUCTIBLE SOURCES OF INCOME?





Unum will subtract from your gross disability payment the following deductible sources of
income:




	 	1.	 	The amount that you receive or are entitled to receive under:






	 	–	 	a workers’ compensation law.
	 
	 	–	 	an occupational disease law.
	 
	 	–	 	any other act or law with similar intent.






	 	2.	 	The amount that you receive or are entitled to receive as disability income payments
under any:






	 	–	 	state compulsory benefit act or law.
	 
	 	–	 	other group insurance plan.
	 
	 	–	 	governmental retirement system as a result of your job with your Employer.






	 	3.	 	The amount that you receive or are entitled to receive as disability payments or the
amount you receive as retirement payments under:






	 	–	 	the United States Social Security Act.
	 
	 	–	 	the Canada Pension Plan.
	 
	 	–	 	the Quebec Pension Plan.





LTD-BEN-3 (10/4/2007)









 









 












	 	–	 	any similar plan or act.
	 






	 	 	 	We will not offset for any amount received by your spouse or dependents.

	 
	 	4.	 	The amount that you:






	 	–	 	receive as disability payments under your Employer’s retirement plan.
	 
	 	–	 	voluntarily elect to receive as retirement payments under your Employer’s retirement
plan.
	 
	 	–	 	receive as retirement payments when you reach the later of age 62 or normal retirement
age, as defined in your Employer’s retirement plan.






Disability payments under a retirement plan will be those benefits which are paid due to
disability and do not reduce the retirement benefit which would have been paid if the
disability had not occurred.




Retirement payments will be those benefits which are based on your Employer’s contribution
to the retirement plan. Disability benefits which reduce the retirement benefit under the
plan will also be considered as a retirement benefit.




Regardless of how the retirement funds from the retirement plan are distributed, Unum will
consider your and your Employer’s contributions to be distributed simultaneously throughout
your lifetime.




Amounts received include amounts rolled over or transferred to any eligible retirement plan.
Unum will use the definition of eligible retirement plan as defined in Section 402 of the
Internal Revenue Code including any future amendments which affect the definition.




	 	5.	 	The amount that you receive under Title 46, United States Code Section 688 (The Jones
Act).
	 
	 	6.	 	The amount that you receive under a salary continuation or accumulated sick leave plan.






With the exception of retirement payments, Unum will only subtract deductible sources of income
which are payable as a result of the same disability.




We will not reduce your payment by your Social Security retirement income if your disability
begins after age 65 and you were already receiving Social Security retirement payments.



WHAT ARE NOT DEDUCTIBLE SOURCES OF INCOME?





Unum will not subtract from your gross disability payment income you receive from, but not
limited to, the following:




	 	–	 	401(k) plans
	 
	 	–	 	profit sharing plans
	 
	 	–	 	thrift plans
	 
	 	–	 	tax sheltered annuities
	 
	 	–	 	stock ownership plans
	 
	 	–	 	non-qualified plans of deferred compensation
	 
	 	–	 	pension plans for partners





LTD-BEN-4 (10/4/2007)




 









 






	 	–	 	military pension and disability income plans
	 
	 	–	 	credit disability insurance
	 
	 	–	 	franchise disability income plans
	 
	 	–	 	a retirement plan from another Employer
	 
	 	–	 	individual retirement accounts (IRA)
	 
	 	–	 	individual disability income plans
	 
	 	–	 	no fault motor vehicle plans
	 
	 	–	 	severance payments




WHAT IF SUBTRACTING DEDUCTIBLE SOURCES OF INCOME RESULTS IN A ZERO BENEFIT? (Minimum Benefit)




     The minimum monthly payment is the greater of:




	 	–	 	$100; or
	 
	 	–	 	10% of your gross disability payment.





     Unum may apply this amount toward an outstanding overpayment.


WHAT HAPPENS WHEN YOU RECEIVE A COST OF LIVING INCREASE FROM DEDUCTIBLE SOURCES OF INCOME?





Once Unum has subtracted any deductible source of income from your gross disability payment,
Unum will not further reduce your payment due to a cost of living increase from that source.


WHAT IF UNUM DETERMINES YOU MAY QUALIFY FOR DEDUCTIBLE INCOME BENEFITS?





When we determine that you may qualify for benefits under Item(s) 1, 2 and 3 in the deductible
sources of income section, we will estimate your entitlement to these benefits. We can reduce
your payment by the estimated amounts if such benefits:




	 	–	 	have not been awarded; and
	 
	 	–	 	have not been denied; or
	 
	 	–	 	have been denied and the denial is being appealed.






Your Long Term Disability payment will NOT be reduced by the estimated amount if you:




	 	–	 	apply for the disability payments under Item(s) 1, 2 and 3 in the deductible sources
of income section and appeal your denial to all administrative levels Unum feels are
necessary; and
	 
	 	–	 	sign Unum’s payment option form. This form states that you promise to pay us any
overpayment caused by an award.






If your payment has been reduced by an estimated amount, your payment will be adjusted when we
receive proof:




	 	–	 	of the amount awarded; or
	 
	 	–	 	that benefits have been denied and all appeals Unum feels are necessary have been
completed. In this case, a lump sum refund of the estimated amount will be made to you.





LTD-BEN-5 (10/4/2007)




 









 









If you receive a lump sum payment from any deductible sources of income, the lump sum will be
pro-rated on a monthly basis over the time period for which the sum was given. If no time
period is stated, we will use a reasonable one.



HOW LONG WILL UNUM CONTINUE TO SEND YOU PAYMENTS?





Unum will send you a payment each month up to the maximum period of payment. Your maximum
period of payment is based on your age at disability as follows:



	 	 	 
	Age at Disability	 	Maximum Period of Payment
	Less than age 60

	 	To age 65, but not less than 5 years
	Age 60

	 	60 months
	Age 61

	 	48 months
	Age 62

	 	42 months
	Age 63

	 	36 months
	Age 64

	 	30 months
	Age 65

	 	24 months
	Age 66

	 	21 months
	Age 67

	 	18 months
	Age 68

	 	15 months
	Age 69 and over

	 	12 months






WHEN WILL PAYMENTS STOP?





We will stop sending you payments and your claim will end on the earliest of the following:




	 	–	 	during the first 24 months of payments, when you are able to work in your regular
occupation on a part-time basis but you choose not to;
	 
	 	–	 	after 24 months of payments, when you are able to work in any gainful occupation on a
part-time basis but you choose not to;
	 
	 	–	 	the end of the maximum period of payment;
	 
	 	–	 	the date you are no longer disabled under the terms of the plan;
	 
	 	–	 	the date you fail to submit proof of continuing disability;
	 
	 	–	 	the date your disability earnings exceed the amount allowable under the plan;
	 
	 	–	 	the date you die.





WHAT DISABILITIES HAVE A LIMITED PAY PERIOD UNDER YOUR PLAN?





Disabilities due to mental illness, alcoholism or drug abuse have a limited pay period up to 24
months.




Unum will continue to send you payments beyond the 24 month period if you meet one or both of
these conditions:




	 	1.	 	If you are confined to a hospital or institution at the end of the 24 month period,
Unum will continue to send you payments during your confinement.






If you are still disabled when you are discharged, Unum will send you payments for a
recovery period of up to 90 days.




If you become reconfined at any time during the recovery period and remain confined for
at least 14 days in a row, Unum will send payments during that



LTD-BEN-6 (10/4/2007)




 









 






additional confinement and for one additional recovery period up to 90 more days.




	 	2.	 	In addition to Item 1, if, after the 24 month period for which you have received
payments, you continue to be disabled and subsequently become confined to a hospital or
institution for at least 14 days in a row, Unum will send payments during the length of the
reconfinement.






Unum will not pay beyond the limited pay period as indicated above, or the maximum period of
payment, whichever occurs first.




Unum will not apply the mental illness limitation to dementia if it is a result of:




	 	–	 	stroke;
	 
	 	–	 	trauma;
	 
	 	–	 	viral infection;
	 
	 	–	 	Alzheimer’s disease; or
	 
	 	–	 	other conditions not listed which are not usually treated by a mental health provider
or other qualified provider using psychotherapy, psychotropic drugs, or other similar
methods of treatment.





WHAT DISABILITIES ARE NOT COVERED UNDER YOUR PLAN?





Your plan does not cover any disabilities caused by, contributed to by, or resulting from your:




	 	–	 	intentionally self-inflicted injuries.
	 
	 	–	 	active participation in a riot.
	 
	 	–	 	loss of a professional license, occupational license or certification.
	 
	 	–	 	commission of a crime for which you have been convicted under state or federal law.
	 
	 	–	 	pre-existing condition.






Your plan will not cover a disability due to war, declared or undeclared, or any act of war
unless there is an express written approval by Unum.




Unum will not pay a benefit for any period of disability during which you are incarcerated.



WHAT IS A PRE-EXISTING CONDITION?




     You have a pre-existing condition if:




	 	–	 	you received medical treatment, consultation, care or services including diagnostic
measures, or took prescribed drugs or medicines in the 3 months just prior to your
effective date of coverage; and
	 
	 	–	 	the disability begins in the first 12 months after your effective date of coverage.




WHAT HAPPENS IF YOU RETURN TO WORK FULL TIME AND YOUR DISABILITY OCCURS AGAIN?





If you have a recurrent disability, Unum will treat your disability as part of your prior claim
and you will not have to complete another elimination period if:



LTD-BEN-7 (10/4/2007)




 









 






	 	–	 	you were continuously insured under the plan for the period between your prior claim
and your recurrent disability; and
	 
	 	–	 	your recurrent disability occurs within 6 months of the end of your prior claim.






Your recurrent disability will be subject to the same terms of this plan as your prior claim.




Any disability which occurs after 6 months from the date your prior claim ended will be treated
as a new claim. The new claim will be subject to all of the policy provisions.




If you become entitled to payments under any other group long term disability plan, you will not
be eligible for payments under the Unum plan.



LTD-BEN-8 (10/4/2007)




 









 








LONG TERM DISABILITY




OTHER BENEFIT FEATURES



WHAT BENEFITS WILL BE PROVIDED TO YOUR FAMILY IF YOU DIE? (Survivor Benefit)





When Unum receives proof that you have died, we will pay your eligible survivor a lump sum
benefit equal to 3 months of your gross disability payment if, on the date of your death:




	 	–	 	your disability had continued for 180 or more consecutive days; and
	 
	 	–	 	you were receiving or were entitled to receive payments under the plan.






If you have no eligible survivors, payment will be made to your estate, unless there is none.
In this case, no payment will be made.




However, we will first apply the survivor benefit to any overpayment which may exist on your
claim.


WHAT IF YOU ARE NOT IN ACTIVE EMPLOYMENT WHEN YOUR EMPLOYER CHANGES INSURANCE CARRIERS TO UNUM?
(Continuity of Coverage)




When the plan becomes effective, Unum will provide coverage for you if:




	 	–	 	you are not in active employment because of a sickness or injury; and

	 
	 	–	 	you were covered by the prior policy.





Your coverage is subject to payment of premium.




Your payment will be limited to the amount that would have been paid by the prior carrier. Unum
will reduce your payment by any amount for which your prior carrier is liable.


WHAT IF YOU HAVE A DISABILITY DUE TO A PRE-EXISTING CONDITION WHEN YOUR EMPLOYER CHANGES INSURANCE
CARRIERS TO UNUM? (Continuity of Coverage)





Unum may send a payment if your disability results from a pre-existing condition if, you were:




	 	–	 	in active employment and insured under the plan on its effective date; and
	 
	 	–	 	insured by the prior policy at the time of change.






In order to receive a payment you must satisfy the pre-existing condition provision under:




	 	1.	 	the Unum plan; or
	 
	 	2.	 	the prior carrier’s plan, if benefits would have been paid had that policy remained in
force.






If you do not satisfy Item 1 or 2 above, Unum will not make any payments.



LTD-OTR-1 (10/4/2007)




 









 









If you satisfy Item 1, we will determine your payments according to the Unum plan provisions.




If you only satisfy Item 2, we will administer your claim according to the Unum plan provisions.
However, your payment will be the lesser of:




	 	a.	 	the monthly benefit that would have been payable under the terms of the prior plan if
it had remained inforce; or
	 
	 	b.	 	the monthly payment under the Unum plan.





Your benefits will end on the earlier of the following dates:




	 	1.	 	the end of the maximum benefit period under the plan; or
	 
	 	2.	 	the date benefits would have ended under the prior plan if it had remained in force.





LTD-OTR-2 (10/4/2007)




 









 








OTHER SERVICES



These services are also available from us as part of your Unum Long Term Disability plan.



HOW CAN UNUM HELP YOUR EMPLOYER IDENTIFY AND PROVIDE WORKSITE MODIFICATION?





A worksite modification might be what is needed to allow you to perform the material and
substantial duties of your regular occupation with your Employer. One of our designated
professionals will assist you and your Employer to identify a modification we agree is likely to
help you remain at work or return to work. This agreement will be in writing and must be signed
by you, your Employer and Unum.




When this occurs, Unum will reimburse your Employer for the cost of the modification, up to the
greater of:




	 	–	 	$1,000; or
	 
	 	–	 	the equivalent of 2 months of your monthly benefit.





     This benefit is available to you on a one time only basis.



HOW CAN UNUM’S REHABILITATION SERVICE HELP YOU RETURN TO WORK?





Unum has a vocational rehabilitation program available to assist you to return to work. This
program is offered as a service, and is voluntary on your part and on Unum’s part.




In addition to referrals made to the rehabilitation program by our claims paying personnel, you
may request to have your claim file reviewed by one of Unum’s rehabilitation professionals. As
your file is reviewed, medical and vocational information will be analyzed to determine if
rehabilitation services might help you return to gainful employment.




Once the initial review is completed, Unum may elect to offer you a return-to-work program. The
return-to-work program may include, but is not limited to, the following services:




	 	–	 	coordination with your Employer to assist you to return to work;

	 
	 	–	 	evaluation of adaptive equipment to allow you to return to work;
	 
	 	–	 	vocational evaluation to determine how your disability may impact your employment
options;
	 
	 	–	 	job placement services;
	 
	 	–	 	resume preparation;
	 
	 	–	 	job seeking skills training; or
	 
	 	–	 	retraining for a new occupation.




HOW CAN UNUM’S SOCIAL SECURITY CLAIMANT ADVOCACY PROGRAM ASSIST YOU WITH OBTAINING SOCIAL SECURITY
DISABILITY BENEFITS?





In order to be eligible for assistance from Unum’s Social Security claimant advocacy program,
you must be receiving monthly payments from us. Unum can provide expert advice regarding your
claim and assist you with your application or appeal.



SERVICES-1 (10/4/2007)




 









 








Receiving Social Security benefits may enable:




	 	–	 	you to receive Medicare after 24 months of disability payments;
	 
	 	–	 	you to protect your retirement benefits; and
	 
	 	–	 	your family to be eligible for Social Security benefits.





We can assist you in obtaining Social Security disability benefits by:




	 	–	 	helping you find appropriate legal representation;
	 
	 	–	 	obtaining medical and vocational evidence; and
	 
	 	–	 	reimbursing pre-approved case management expenses.





SERVICES-2 (10/4/2007)




 









 








GLOSSARY



ACTIVE EMPLOYMENT means you are working for your Employer for earnings that are paid regularly and
that you are performing the material and substantial duties of your regular occupation. You must
be working at least the minimum number of hours as described under Eligible Group(s) in each plan.



Your work site must be:





	–	 	your Employer’s usual place of business;
	 
	–	 	an alternative work site at the direction of your Employer, including your home; or
	 
	–	 	a location to which your job requires you to travel.




Normal vacation is considered active employment.


Temporary and seasonal workers are excluded from coverage.



DEDUCTIBLE SOURCES OF INCOME means income from deductible sources listed in the plan which you
receive or are entitled to receive while you are disabled. This income will be subtracted from
your gross disability payment.



DISABILITY EARNINGS means the earnings which you receive while you are disabled and working, plus
the earnings you could receive if you were working to your maximum capacity.



DOMESTIC PARTNER means an adult of the same or opposite sex who has an emotional, physical and
financial relationship to you, similar to that of a spouse; as evidenced by the following facts:





	–	 	you and your domestic partner share financial responsibility for a joint household and
intend to continue an exclusive relationship indefinitely;
	 
	–	 	you and your domestic partner each are at least eighteen (18) years of age;
	 
	–	 	you and your domestic partner are both mentally competent to enter into a binding contract;
	 
	–	 	you and your domestic partner share a residence and have done so for at least 6 months;
	 
	–	 	neither you nor your domestic partner are married to, or legally separated from anyone else;
	 
	–	 	you and your domestic partner are not related to one another by blood closer than would bar
marriage; and
	 
	–	 	neither you nor your domestic partner is a domestic partner of anyone else.




ELIMINATION PERIOD means a period of continuous disability which must be satisfied before you are
eligible to receive benefits from Unum.



EMPLOYEE means a citizen or permanent resident of the United States or Canada who is in active
employment in the United States with the Employer unless an exception is applied for and approved
in writing by Unum.



EMPLOYER means the Policyholder, and includes any division, subsidiary or affiliated company named
in the policy.



GAINFUL OCCUPATION means an occupation that is or can be expected to provide you with an income at
least equal to 60% of your indexed monthly earnings within 12 months of your return to work.




GLOSSARY-1 (10/4/2007)




 









 







GRACE PERIOD means the period of time following the premium due date during which premium payment
may be made.



GROSS DISABILITY PAYMENT means the benefit amount before Unum subtracts deductible sources of
income and disability earnings.



HOSPITAL OR INSTITUTION means an accredited facility licensed to provide care and treatment for the
condition causing your disability.



INDEXED MONTHLY EARNINGS means your monthly earnings adjusted on each anniversary of benefit
payments by the lesser of 10% or the current annual percentage increase in the Consumer Price
Index. Your indexed monthly earnings may increase or remain the same, but will never decrease.



The Consumer Price Index (CPI-W) is published by the U.S. Department of Labor. Unum reserves the
right to use some other similar measurement if the Department of Labor changes or stops publishing
the CPI-W.



Indexing is only used to determine your percentage of lost earnings while you are disabled and
working.



INJURY means a bodily injury that is the direct result of an accident and not related to any other
cause. Disability must begin while you are covered under the plan.



INSURED means any person covered under a plan.



LAW, PLAN OR ACT means the original enactments of the law, plan or act and all amendments.



LEAVE OF ABSENCE means you are temporarily absent from active employment for a period of time that
has been agreed to in advance in writing by your Employer.



Your normal vacation time or any period of disability is not considered a leave of absence.



LIMITED means what you cannot or are unable to do.



MATERIAL AND SUBSTANTIAL DUTIES means duties that:





	–	 	are normally required for the performance of your regular occupation; and
	 
	–	 	cannot be reasonably omitted or modified, except that if you are required to work on average
in excess of 40 hours per week, Unum will consider you able to perform that requirement if you
are working or have the capacity to work 40 hours per week.




MAXIMUM CAPACITY means, based on your restrictions and limitations:





	–	 	during the first 24 months of disability, the greatest extent of work you are able to do in
your regular occupation, that is reasonably available.
	 
	–	 	beyond 24 months of disability, the greatest extent of work you are able to do in any
occupation, that is reasonably available, for which you are reasonably fitted by education,
training or experience.





GLOSSARY-2 (10/4/2007)




 









 







MAXIMUM PERIOD OF PAYMENT means the longest period of time Unum will make payments to you for any
one period of disability.



MENTAL ILLNESS means a psychiatric or psychological condition regardless of cause such as
schizophrenia, depression, manic depressive or bipolar illness, anxiety, personality disorders
and/or adjustment disorders or other conditions. These conditions are usually treated by a mental
health provider or other qualified provider using psychotherapy, psychotropic drugs, or other
similar methods of treatment.



MONTHLY BENEFIT means the total benefit amount for which an employee is insured under this plan
subject to the maximum benefit.



MONTHLY EARNINGS means your monthly base pay as determined by your business unit.



MONTHLY PAYMENT means your payment after any deductible sources of income have been subtracted from
your gross disability payment.



PART-TIME BASIS means the ability to work and earn 20% or more of your indexed monthly earnings.



PAYABLE CLAIM means a claim for which Unum is liable under the terms of the policy.



PHYSICIAN means:





	–	 	a person performing tasks that are within the limits of his or her medical license; and
	 
	–	 	a person who is licensed to practice medicine and prescribe and administer drugs or to
perform surgery; or
	 
	–	 	a person with a doctoral degree in Psychology (Ph.D. or Psy.D.) whose primary practice is
treating patients; or
	 
	–	 	a person who is a legally qualified medical practitioner according to the laws and
regulations of the governing jurisdiction.




Unum will not recognize you, or your spouse, children, parents or siblings as a physician for a
claim that you send to us.



PLAN means a line of coverage under the policy.



POLICYHOLDER means the Employer to whom the policy is issued.



PRE-EXISTING CONDITION means a condition for which you received medical treatment, consultation,
care or services including diagnostic measures, or took prescribed drugs or medicines for your
condition during the given period of time as stated in the plan.



RECURRENT DISABILITY means a disability which is:





	–	 	caused by a worsening in your condition; and
	 
	–	 	due to the same cause(s) as your prior disability for which Unum made a Long Term Disability
payment.





GLOSSARY-3 (10/4/2007)




 









 







REGULAR CARE means:





	–	 	you personally visit a physician as frequently as is medically required, according to
generally accepted medical standards, to effectively manage and treat your disabling
condition(s); and






	–	 	you are receiving the most appropriate treatment and care which conforms with generally
accepted medical standards, for your disabling condition(s) by a physician whose specialty or
experience is the most appropriate for your disabling condition(s), according to generally
accepted medical standards.




REGULAR OCCUPATION means the occupation you are routinely performing when your disability begins.
Unum will look at your occupation as it is normally performed in the national economy, instead of
how the work tasks are performed for a specific employer or at a specific location.



RETIREMENT PLAN means a defined contribution plan or defined benefit plan. These are plans which
provide retirement benefits to employees and are not funded entirely by employee contributions.
Retirement Plan includes but is not limited to any plan which is part of any federal, state,
county, municipal or association retirement system.



SALARY CONTINUATION OR ACCUMULATED SICK LEAVE means continued payments to you by your Employer of
all or part of your monthly earnings, after you become disabled as defined by the Policy. This
continued payment must be part of an established plan maintained by your Employer for the benefit
of all employees covered under the Policy. Salary continuation or accumulated sick leave does not
include compensation paid to you by your Employer for work you actually perform after your
disability begins. Such compensation is considered disability earnings, and would be taken into
account in calculating your monthly payment.



SICKNESS means an illness or disease. Disability must begin while you are covered under the plan.



SURVIVOR, ELIGIBLE means your spouse or domestic partner, if living; otherwise your children under
age 25 equally.



TOTAL COVERED PAYROLL means the total amount of monthly earnings for which employees are insured
under this plan.



WAITING PERIOD means the continuous period of time (shown in each plan) that you must be in active
employment in an eligible group before you are eligible for coverage under a plan.



WE, US and OUR means Unum Life Insurance Company of America.



YOU means an employee who is eligible for Unum coverage.




GLOSSARY-4 (10/4/2007)




 









 








ERISA




Additional Summary Plan Description Information



If this policy provides benefits under a Plan which is subject to the Employee Retirement Income
Security Act of 1974 (ERISA), the following provisions apply. These provisions, together with your
certificate of coverage, constitute the summary plan description. The summary plan description and
the policy constitute the Plan. Benefit determinations are controlled exclusively by the policy,
your certificate of coverage and the information contained in this document.




Name of Plan:



Northrop Grumman Corporation Group Benefits Plan

Northrop Grumman ES Space Systems Consolidated Health Plan




Name and Address of Employer:



Northrop Grumman Corporation

1840 Century Park East

Los Angeles, California

90067




Plan Identification Number:



a. Employer IRS Identification #: 95-4840775

b. Plan #: Northrop Grumman Corporation Group Benefits Plan — #501

                Northrop Grumman ES Space Systems Consolidated Health

                Plan
- #503




Type of Plan:





Welfare Benefit Plan



Type of Administration:





The Plan is administered by the Plan Administrator. Long Term Disability Benefits are
administered by the insurer and provided in accordance with the insurance policy issued to
the Plan.



Benefit Plan Year:





July 1 to June 30



ERISA Plan Year:





December 31



Plan Administrator, Name,

Address, and Telephone Number:



Employee Welfare Benefits Committee

Northrop Grumman Corporation

1840 Century Park East

Los Angeles, California

90067-2199

(800) 894-4194





Northrop Grumman Corporation is the Plan Administrator and named fiduciary of the Plan, with
authority to delegate its duties. The Plan Administrator may



ADDLSUM-1 (10/4/2007)




 









 









designate Trustees of the Plan, in which case the Administrator will advise you separately
of the name, title and address of each Trustee.



Agent for Service of

Legal Process on the Plan:



Northrop Grumman Corporation

c/o Corporate Secretary

1840 Century Park East

Los Angeles, California

90067-2199





Service of legal process may also be made upon the Plan Administrator, or a Trustee of the
Plan, if any.



Funding and Contributions:





Long Term Disability Benefits under the plan are funded on an insured basis under policy
number 587628 002, issued by Unum Life Insurance Company of America, 2211 Congress Street,
Portland, Maine 04122. Contributions to the Plan are made as stated under “WHO PAYS FOR THE
COVERAGE” in the Certificate of Coverage.



EMPLOYER’S RIGHT TO AMEND THE PLAN





The Employer reserves the right, in its sole and absolute discretion, to amend, modify, or
terminate, in whole or in part, any or all of the provisions of this Plan (including any related
documents and underlying policies), at any time and for any reason or no reason. This includes
the right to amend or terminate the long term disability benefits described in the Certificate
of Coverage. Any amendment, modification, or termination must be in writing and endorsed on or
attached to the Plan.



EMPLOYER’S RIGHT TO REQUEST POLICY CHANGE





The Employer can request a policy change. Only an officer or registrar of Unum can approve a
change. The change must be in writing and endorsed on or attached to the policy.



CANCELLING THE POLICY OR A PLAN UNDER THE POLICY




     The policy or a plan under the policy can be cancelled:




	 	–	 	by Unum; or
	 
	 	–	 	by the Policyholder.





     Unum may cancel or offer to modify the policy or a plan if:




	 	–	 	there is less than 25% participation of those eligible employees who pay all or part
of their premium for a plan; or
	 
	 	–	 	there is less than 100% participation of those eligible employees for a Policyholder
paid plan;
	 
	 	–	 	the Policyholder does not promptly provide Unum with information that is reasonably
required;
	 
	 	–	 	the Policyholder fails to perform any of its obligations that relate to the policy;
	 
	 	–	 	fewer than 25 employees are insured under a plan;





ADDLSUM-2 (10/4/2007)




 









 









	 	–	 	the Policyholder fails to pay any premium within the 60 day grace period.






If Unum cancels the policy or a plan for reasons other than the Policyholder’s failure to pay
premium, a written notice will be delivered to the Policyholder at least 120 days prior to the
cancellation date.




If the premium is not paid during the grace period, the policy or plan will terminate
automatically at the end of the grace period. The Policyholder is liable for premium for
coverage during the grace period. The Policyholder must pay Unum all premium due for the full
period each plan is in force.




The Policyholder may cancel the policy or a plan by written notice delivered to Unum at least 31
days prior to the cancellation date. When both the Policyholder and Unum agree, the policy or a
plan can be cancelled on an earlier date. If Unum or the Policyholder cancels the policy or a
plan, coverage will end at 12:00 midnight on the last day of coverage.




If the policy or a plan is cancelled, the cancellation will not affect a payable claim.



HOW TO FILE A CLAIM





If you wish to file a claim for benefits, you should follow the claim procedures described in
your insurance certificate. To complete your claim filing, Unum must receive the claim
information it requests from you (or your authorized representative), your attending physician
and your Employer. If you or your authorized representative has any questions about what to do,
you or your authorized representative should contact Unum directly.



CLAIMS PROCEDURES





Unum will give you notice of the decision no later than 45 days after the claim is filed. This
time period may be extended twice by 30 days if Unum both determines that such an extension is
necessary due to matters beyond the control of the Plan and notifies you of the circumstances
requiring the extension of time and the date by which Unum expects to render a decision. If
such an extension is necessary due to your failure to submit the information necessary to decide
the claim, the notice of extension will specifically describe the required information, and you
will be afforded at least 45 days within which to provide the specified information. If you
deliver the requested information within the time specified, any 30 day extension period will
begin after you have provided that information. If you fail to deliver the requested
information within the time specified, Unum may decide your claim without that information.




If your claim for benefits is wholly or partially denied, the notice of adverse benefit
determination under the Plan will:




	 	–	 	state the specific reason(s) for the determination;
	 
	 	–	 	reference specific Plan provision(s) on which the determination is based;
	 
	 	–	 	describe additional material or information necessary to complete the claim and why
such information is necessary;





ADDLSUM-3 (10/4/2007)




 









 









	 	–	 	describe Plan procedures and time limits for appealing the determination, and your
right to obtain information about those procedures and the right to bring a lawsuit under
Section 502(a) of ERISA following an adverse determination from Unum on appeal; and
	 
	 	–	 	disclose any internal rule, guidelines, protocol or similar criterion relied on in
making the adverse determination (or state that such information will be provided free of
charge upon request).






Notice of the determination may be provided in written or electronic form. Electronic notices
will be provided in a form that complies with any applicable legal requirements.



APPEAL PROCEDURES





You have 180 days from the receipt of notice of an adverse benefit determination to file an
appeal. Requests for appeals should be sent to the address specified in the claim denial. A
decision on review will be made not later than 45 days following receipt of the written request
for review. If Unum determines that special circumstances require an extension of time for a
decision on review, the review period may be extended by an additional 45 days (90 days in
total). Unum will notify you in writing if an additional 45 day extension is needed.




If an extension is necessary due to your failure to submit the information necessary to decide
the appeal, the notice of extension will specifically describe the required information, and you
will be afforded at least 45 days to provide the specified information. If you deliver the
requested information within the time specified, the 45 day extension of the appeal period will
begin after you have provided that information. If you fail to deliver the requested
information within the time specified, Unum may decide your appeal without that information.




You will have the opportunity to submit written comments, documents, or other information in
support of your appeal. You will have access to all relevant documents as defined by applicable
U.S. Department of Labor regulations. The review of the adverse benefit determination will take
into account all new information, whether or not presented or available at the initial
determination. No deference will be afforded to the initial determination.




The review will be conducted by Unum and will be made by a person different from the person who
made the initial determination and such person will not be the original decision maker’s
subordinate. In the case of a claim denied on the grounds of a medical judgment, Unum will
consult with a health professional with appropriate training and experience. The health care
professional who is consulted on appeal will not be the individual who was consulted during the
initial determination or a subordinate. If the advice of a medical or vocational expert was
obtained by the Plan in connection with the denial of your claim, Unum will provide you with the
names of each such expert, regardless of whether the advice was relied upon.




A notice that your request on appeal is denied will contain the following information:




	 	–	 	the specific reason(s) for the determination;
	 
	 	–	 	a reference to the specific Plan provision(s) on which the determination is based;





ADDLSUM-4 (10/4/2007)




 









 









	 	–	 	a statement disclosing any internal rule, guidelines, protocol or similar criterion
relied on in making the adverse determination (or a statement that such information will be
provided free of charge upon request);
	 
	 	–	 	a statement describing your right to bring a lawsuit under Section 502(a) of ERISA if
you disagree with the decision;
	 
	 	–	 	the statement that you are entitled to receive upon request, and without charge,
reasonable access to or copies of all documents, records or other information relevant to
the determination; and
	 
	 	–	 	the statement that “You or your plan may have other voluntary alternative dispute
resolution options, such as mediation. One way to find out what may be available is to
contact your local U.S. Department of Labor Office and your State insurance regulatory
agency”.






Notice of the determination may be provided in written or electronic form. Electronic notices
will be provided in a form that complies with any applicable legal requirements.




Unless there are special circumstances, this administrative appeal process must be completed
before you begin any legal action regarding your claim.



YOUR RIGHTS UNDER ERISA





As a participant in this Plan you are entitled to certain rights and protections under the
Employee Retirement Income Security Act of 1974 (ERISA). ERISA provides that all Plan
participants shall be entitled to:




Receive Information About Your Plan and Benefits




Examine, without charge, at the Plan Administrator’s office and at other specified locations,
all documents governing the Plan, including insurance contracts, and a copy of the latest annual
report (Form 5500 Series) filed by the Plan with the U.S. Department of Labor and available at
the Public Disclosure Room of the Employee Benefits Security Administration.




Obtain, upon written request to the Plan Administrator, copies of documents governing the
operation of the Plan, including insurance contracts, and copies of the latest annual report
(Form 5500 Series) and updated summary plan description. The Plan Administrator may make a
reasonable charge for the copies.




Receive a summary of the Plan’s annual financial report. The Plan Administrator is required by
law to furnish each participant with a copy of this summary annual report.



ADDLSUM-5 (10/4/2007)




 









 









Prudent Actions by Plan Fiduciaries




In addition to creating rights for Plan participants, ERISA imposes duties upon the people who
are responsible for the operation of the employee benefit plan. The people who operate your
Plan, called “fiduciaries” of the Plan, have a duty to do so prudently and in the interest of
you and other Plan participants and beneficiaries. No one, including your Employer or any other
person, may fire you or otherwise discriminate against you in any way to prevent you from
obtaining a benefit or exercising your rights under ERISA.




Enforce Your Rights




If your claim for a benefit is denied or ignored, in whole or in part, you have a right to know
why this was done, to obtain copies of documents relating to the decision without charge, and to
appeal any denial, all within certain time schedules.




Under ERISA, there are steps you can take to enforce the above rights. For instance, if you
request a copy of Plan documents or the latest annual report from the Plan and do not receive
them within 30 days, you may file suit in a federal court. In such a case, the court may
require the Plan Administrator to provide the materials and pay you up to $110 a day until you
receive the materials, unless the materials were not sent because of reasons beyond the control
of the Plan Administrator.




If you have a claim for benefits that is denied or ignored, in whole or in part, you may file
suit in a state or federal court if you have exhausted your administrative appeal rights . If
it should happen that Plan fiduciaries misuse the Plan’s money, or if you are discriminated
against for asserting your rights, you may seek assistance from the U.S. Department of Labor, or
you may file suit in a federal court. The court will decide who should pay court costs and
legal fees. If you are successful, the court may order the person you have sued to pay these
costs and fees. If you lose, the court may order you to pay these costs and fees, if, for
example, it finds your claim is frivolous.




Assistance with Your Questions




If you have any questions about your Plan, you should contact the Plan Administrator. If you
have any questions about this statement or about your rights under ERISA, or if you need
assistance in obtaining documents from the Plan Administrator, you should contact the nearest
office of the Employee Benefits Security Administration, U.S. Department of Labor, listed in
your telephone directory or the Division of Technical Assistance and Inquiries, Employee
Benefits Security Administration, U.S. Department of Labor, 200 Constitution Avenue N.W.,
Washington, D.C. 20210. You may also obtain certain publications about your rights and
responsibilities under ERISA by calling the publications hotline of the Employee Benefits
Security Administration.



ADDLSUM-6 (10/4/2007)




 









 








OTHER RIGHTS





Unum, for itself and as claims fiduciary for the Plan, is entitled to legal and equitable relief
to enforce its right to recover any benefit overpayments caused by your receipt of deductible
sources of income from a third party. This right of recovery is enforceable even if the amount
you receive from the third party is less than the actual loss suffered by you but will not
exceed the benefits paid you under the policy. Unum and the Plan have an equitable lien over
such sources of income until any benefit overpayments have been recovered in full.



DISCRETIONARY ACTS





The Plan, acting through the Plan Administrator, delegates to Unum and its affiliate Unum Group
discretionary authority to make benefit determinations under the Plan. Unum and Unum Group may
act directly or through their employees and agents or further delegate their authority through
contracts, letters or other documentation or procedures to other affiliates, persons or
entities. Benefit determinations include determining eligibility for benefits and the amount of
any benefits, resolving factual disputes, and interpreting and enforcing the provisions of the
Plan. All benefit determinations must be reasonable and based on the terms of the Plan and the
facts and circumstances of each claim.




Once you are deemed to have exhausted your appeal rights under the Plan, you have the right to
seek court review under Section 502(a) of ERISA of any benefit determinations with which you
disagree. The court will determine the standard of review it will apply in evaluating those
decisions.



ADDLSUM-7 (10/4/2007)




 









 








Unum’s Commitment to Privacy



Unum understands your privacy is important. We value our relationship with you and are committed to
protecting the confidentiality of nonpublic personal information (NPI). This notice explains why we
collect NPI, what we do with NPI and how we protect your privacy.




Collecting Information



We collect NPI about our customers to provide them with insurance products and services. This may
include telephone number, address, date of birth, occupation, income and health history. We may
receive NPI from your applications and forms, medical providers, other insurers, employers,
insurance support organizations, and service providers.




Sharing Information



We share the types of NPI described above primarily with people who perform insurance, business,
and professional services for us, such as helping us pay claims and detect fraud. We may share NPI
with medical providers for insurance and treatment purposes. We may share NPI with an insurance
support organization. The organization may retain the NPI and disclose it to others for whom it
performs services. In certain cases, we may share NPI with group policyholders for reporting and
auditing purposes. We may share NPI with parties to a proposed or final sale of insurance business
or for study purposes. We may also share NPI when otherwise required or permitted by law, such as
sharing with governmental or other legal authorities. When legally necessary, we ask your
permission before sharing NPI about you. Our practices apply to our former, current and future
customers.



Please be assured we do not share your health NPI to market any product or service. We also do not
share any NPI to market non-financial products and services. For example, we do not sell your name
to catalog companies.



The law allows us to share NPI as described above (except health information) with affiliates to
market financial products and services. The law does not allow you to restrict these disclosures.
We may also share with companies that help us market our insurance products and services, such as
vendors that provide mailing services to us. We may share with other financial institutions to
jointly market financial products and services. When required by law, we ask your permission before
we share NPI for marketing purposes.



When other companies help us conduct business, we expect them to follow applicable privacy laws. We
do not authorize them to use or share NPI except when necessary to conduct the work they are
performing for us or to meet regulatory or other governmental requirements.



Unum companies, including insurers and insurance service providers, may share NPI about you with
each other. The NPI might not be directly related to our transaction or experience with you. It
may include financial or other personal information such as employment history. Consistent with
the Fair Credit Reporting Act, we ask your permission before sharing NPI that is not directly
related to our transaction or experience with you.




GLB-1 (10/4/2007)




 









 








Safeguarding Information



We have physical, electronic and procedural safeguards that protect the confidentiality and
security of NPI. We give access only to employees who need to know the NPI to provide insurance
products or services to you.




Access to Information



You may request access to certain NPI we collect to provide you with insurance products and
services. You must make your request in writing and send it to the address below. The letter should
include your full name, address, telephone number and policy number if we have issued a policy. If
you request, we will send copies of the NPI to you. If the NPI includes health information, we may
provide the health information to you through a health care provider you designate. We will also
send you information related to disclosures. We may charge a reasonable fee to cover our copying
costs.



This section applies to NPI we collect to provide you with coverage. It does not apply to NPI we
collect in anticipation of a claim or civil or criminal proceeding.




Correction of Information



If you believe NPI we have about you is incorrect, please write to us. Your letter should include
your full name, address, telephone number and policy number if we have issued a policy. Your
letter should also explain why you believe the NPI is inaccurate. If we agree with you, we will
correct the NPI and notify you of the correction. We will also notify any person who may have
received the incorrect NPI from us in the past two years if you ask us to contact that person.



If we disagree with you, we will tell you we are not going to make the correction. We will give you
the reason(s) for our refusal. We will also tell you that you may submit a statement to us. Your
statement should include the NPI you believe is correct. It should also include the reason(s) why
you disagree with our decision not to correct the NPI in our files. We will file your statement
with the disputed NPI. We will include your statement any time we disclose the disputed NPI. We
will also give the statement to any person designated by you if we may have disclosed the disputed
NPI to that person in the past two years.




Coverage Decisions



If we decide not to issue coverage to you, we will provide you with the specific reason(s) for our
decision. We will also tell you how to access and correct certain NPI.




Contacting Us



For additional information about Unum’s commitment to privacy, please visit
www.unum.com/privacy or www.coloniallife.com or write to: Privacy Officer, Unum,
2211 Congress Street, C467, Portland, Maine 04122. We reserve the right to modify this notice. We
will provide you with a new notice if we make material changes to our privacy practices.



Unum is providing this notice to you on behalf of the following insuring companies: Unum Life
Insurance Company of America, First Unum Life Insurance Company, Provident Life and Accident
Insurance




GLB-2 (10/4/2007)




 









 







Company, Provident Life and Casualty Insurance Company, Colonial Life & Accident Insurance Company,
The Paul Revere Life Insurance Company and The Paul Revere Variable Annuity Insurance Company.



Unum is a registered trademark and marketing brand of Unum Group and its insuring subsidiaries.




A-32442 (4-07)




GLB-3 (10/4/2007)