Document:

EX-10(X) TRW Benefits Equalization Plan

 

Exhibit 10(x)

TRW BENEFITS EQUALIZATION PLAN

Amended and Restated

Effective January 1, 2002

1.     Purpose. The purpose of the TRW Benefits Equalization Plan (“BEP”), as
amended and restated effective January 1, 2002, is to provide supplemental
retirement and death benefits to those management and highly-compensated
employees of TRW Inc. and its subsidiaries (“TRW”) whose benefits under the TRW
Employee Stock Ownership and Savings Plan (the “Stock Savings Plan”) are limited
by reason of:

     a.     the
limitations on compensation under §401(a)(17) of the Internal Revenue Code of 1986
(“Code”);

     b.     the
dollar limitations on elective deferrals under Code §402(g)(1);

     c.     the limitations on the amount that TRW can contribute as “TRW Matching Contributions” as
defined under the Stock Savings Plan without exceeding the amount
provided by Code §415(c)(1)(A); and

     d.     the exclusion of compensation otherwise included as “Compensation”
under the Stock Savings Plan due to the fact that (i) such compensation was
deferred under the provisions of the TRW Inc. Deferred Compensation Plan (“DC
Plan”) rather than received or (ii) a determination was made by TRW that such
inclusion could violate the regulations under Code §401(a)(4).

     The BEP is unfunded for tax purposes and for purposes of Title I of the
Employee Retirement Income Security Act (“ERISA”) and is designed to provide
benefits which mirror the provisions of the Stock Savings Plan but cannot be
paid from the Stock Savings Plan because of certain Code limitations.

2.     Eligibility. An employee who is employed at Operational Incentive Plan
(“OIP”) Level III or above during a calendar year or whose base pay and other
compensation paid or deferred in a calendar year exceeds the compensation
limitations of Code §401(a)(17) for such year will be eligible to participate
in the BEP for the immediately following calendar year provided he or she is
otherwise eligible, and has elected, to participate in the Stock Savings Plan
and has timely elected to participate in the BEP. An employee who has timely
elected to participate in the BEP will continue to be eligible to participate in
subsequent years even if the employee ceases to be employed at OIP Level III or
higher or ceases to have compensation in excess of the compensation limit of Code
§401(a)(17), subject to a determination by the Committee or its delegate that
the employee’s participation must cease in order to preserve the BEP’s status as
a plan maintained primarily for the purpose of providing deferred compensation
for a select group of management or highly compensated employees. An employee
who fails to timely elect to participate in the BEP upon becoming eligible will
cease to be eligible to participate in the BEP if his or her base pay and bonus
paid (or deferred) falls below the compensation limit of Code §401(a)(17) or
if he or she ceases to be employed at OIP Level III or above.

 

3. Accounts.

     a.     An account (“Account”) shall be established in the name of each
eligible employee who has timely elected to participate (a “Participant”) into
which shall be credited the following amounts:

		
	 	     i. that percentage of the Participant’s current compensation
which the Participant elected to contribute to the Stock Savings Plan
as “Before-Tax Contributions” and that percentage of the Participant’s
current compensation which the Company would have contributed to the
Stock Savings Plan as “TRW Matching Contributions” (both terms as
defined under the Stock Savings Plan) to the extent that such amounts
cannot be contributed to the Stock Savings Plan due to any of the
reasons identified in Section 1; provided: (A) for a Participant who is
eligible to make an additional Before-Tax Contribution to the Stock
Savings Plan pursuant to Code §414(v), in determining the amount that
may be contributed to the Stock Savings Plan (for purposes of applying
this Section 3.a.i), the dollar limitation on elective deferrals under
Code §402(g)(1) shall be increased by the “applicable dollar amount”
for the year as defined under Code §414(v)(2)(B); (B) the percentage
of the Participant’s compensation credited to the Account, when
combined with the percentage elected under the Stock Savings Plan, may
not at any time be greater than that amount of “Before-Tax
Contributions” which the Participant would be permitted to contribute,
as a highly-compensated Participant, to the Stock Savings Plan without
regard to the above-referenced limitations; and (C) the TRW Matching
Contributions credited to the Account shall be reduced by any amounts
actually contributed for the Participant by the Company to the Stock
Savings Plan as TRW Matching Contributions; plus
	 
	 	     ii. investment performance on a daily basis on the amounts
credited under Section 3.a.i. above in accordance with the
Participant’s election as provided in Section 4 below; provided,
however that interest and dividend performance under PIMCO Total Return
Fund and PRIMCO Stable Value fund will be accrued daily and credited
monthly.

     b.     The Participant’s annual election to participate in the BEP by
having his Account credited as provided in Section 3.a. shall be filed with
Putnam Fiduciary Trust Company (“Putnam”) in a prescribed manner and shall be
filed at such time as the Committee may specify, but in all cases prior to the
time such compensation is to be earned by the Participant. No changes in the
percentage of compensation credited to the Account shall be made during the
calendar year following the election, unless the Participant elects zero
percent.

     c.     Participants shall have, at all times, a nonforfeitable interest in the amounts credited to
their Accounts, subject to the provisions of Section 6.e.

     d.     Participants shall receive, no less frequently than quarterly, a
statement of their Account within a reasonable period after the end of each
calendar quarter.

4. Earnings.

     a.     Each Participant in the BEP may elect to have monies credited to his
or her Account based upon the performance of the same investment fund options
offered to Participants under the Stock Savings Plan; provided, however, that
effective July 1, 2000, any changes to the investment funds offered to
participants under the Stock Savings Plan will result in a change to the
investment options available under the BEP only if and when such changes are
approved by the Chairman of the Board, the General Counsel and the Executive
Vice President — Human Resources of TRW; and provided further that the
self-directed brokerage window to be offered to participants under the Stock
Savings Plan effective July 5, 2000, will

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not be made available as an investment option under the BEP; such election may
be made by allocating the entire Account to one of the earnings options or by
allocating the Account between selected investment fund options in one percent
multiples. Each Participant may change his or her election on a daily basis with
Putnam through its online or automated voice response unit or through a BEP
Customer Service Representative.

     b.     All TRW Matching Contributions allocated to a Participant’s Account will be credited in the
same manner as the Participant’s election under Section 4.a.

5. Time of Payment.

     a.     Except as otherwise provided herein, payment of the Account to the
Participant (or, in the event of his death, to his beneficiary as designated in
writing to the Committee) shall be made as of the end of January following the
following events:

		
	 	     i. the Participant’s becoming disabled as defined by the terms and conditions of the
Stock Savings Plan;
	 
	 	     ii. the death of the Participant; or
	 
	 	     iii. the termination of the Participant’s employment with TRW through retirement or
otherwise.

     b.     Notwithstanding Section 5.a.iii., if the Participant’s termination
of employment is the result of the divestiture of the unit or operations of TRW
where the Participant worked prior to termination of employment and the
Participant obtains employment with the entity that acquired such operations
(“successor employer”), the BEP benefit shall not be payable until such
Participant’s termination of employment with the successor employer, except as
provided under Section 6.d.

     c.     Notwithstanding the above, the Directors/Committee, upon determining
that the Participant has suffered an emergency event beyond his control which
would impose an immediate and heavy financial hardship if the payment of his
benefits were not made, may pay to the Participant that part of his Account
which is needed to satisfy such hardship. Further, for purposes of Section
5.a.iii, a Participant’s employment with TRW will not be deemed to have
terminated following the Participant’s layoff until the earlier of the end of
the twelve-month period following layoff (without a return to TRW employment) or
the date on which the Participant retires under any TRW-sponsored pension plan.

6. Payment of Benefits.

     a.     Subject to Section 6.b., the automatic form of payment of monies in
the Account in the event of a termination of employment due to retirement shall
be ten equal annual installments, payable during the month of January; provided,
however, that the Participant can petition the Directors or the Committee at any
time at least two months prior to the Participant’s eligibility for payout from
the Stock Savings Plan to change such payment to any lesser number of annual
installments or to a single sum. If annual installments are paid, the balance of
the Account shall continue to be credited with investment performance as
previously elected by the Participant in accordance with Section 4. The form of
payment of monies in the Account for a termination of employment other than
retirement shall be a single sum, payable during the month of January following
termination of employment. If a Participant’s employment terminates due to
layoff, payment of monies in his Account will be made in a single sum during the
month of January following the end of the 12-month period following layoff;
provided, however, that if a Participant retires during the 12-month period
following layoff, payment will be made in

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accordance with the automatic form of payment for retirements. The form of
payment of monies in the Account in the event that a Participant’s termination
of employment occurs due to his death shall be a single sum, payable during the
month of January following the Participant’s date of death; provided, however,
that if a participant shall die while receiving retirement installments,
installments shall continue to the beneficiary or estate until the Account is
completely paid out.

     b.     Upon approval by the Directors/Committee, any election of a form of
payment other than the automatic form of payment for a retirement provided in
this Section shall be irrevocable.

     c.     Payment of the Account shall be made in the form of cash unless the
Directors/Committee determines in its discretion that it is appropriate to pay
that portion of the Participant’s Account attributable to TRW Matching
Contributions and earnings thereon in shares of TRW common stock, in which event
such distribution of shares shall occur no earlier than six months following the
date that the Participant is last employed by TRW.

     d.     If the balance in the Participant’s Account under the BEP,
determined as of any of the events described in Section 5.a. above or following
payment of any retirement installment payment, is less than $5,000, said Account
balance shall automatically be paid out in a single sum in the first January
following said event or installment payment.

     e.     Payments under the BEP shall be made by TRW, with any appropriate
reimbursement being made by subsidiaries of TRW. The BEP shall be unfunded, and
TRW shall not be required to establish any special or separate fund nor to make
any other segregation of assets in order to assure the payment of any amounts
under the BEP. Participants in the BEP have the status of general unsecured
creditors of TRW and the BEP constitutes a mere promise by TRW to make benefit
payments in the future.

7.     Non-Alienation
of Benefits. Neither a Participant nor any other person shall
have any right to sell, assign, transfer, pledge, mortgage or otherwise
encumber, in advance of actual receipt, any BEP benefit. Any such attempted
assignment or transfer shall be ineffective; TRW’s sole obligation under the BEP
shall be to pay benefits to the Participant, his beneficiary or his estate, as
appropriate. No part of any BEP benefit shall, prior to actual payment, be
subject to the payment of any debts, judgments, alimony or separate maintenance
owed by a Participant or any other person; nor shall any BEP benefit be
transferable by operation of law in the event of a Participant’s or any other
person’s bankruptcy or insolvency, except as required or permitted by law.

8.     Directors/Committee. For purposes of the BEP, “Directors” shall mean the
Compensation Committee of the Directors of TRW Inc. with respect to the approval
of benefits of any Participant who is, or ever was, either a Director of TRW, a
member of the Chief Executive Office, or a member of the Management Committee.
With respect to the approval of benefits of other Participants, “Committee”
shall refer to a Special Committee consisting of those three employees of TRW
Inc. who occupy the most senior positions in the Company Staff Finance, Human
Resources, and Law Departments. The Committee or its delegate shall interpret
the provisions of the BEP, determine the rights and status of Participants and
beneficiaries hereunder, and handle the general administration of the BEP. The
Committee or its delegate may determine that an employee’s participation in the
BEP must cease in order to preserve the BEP’s status as a plan maintained
primarily for the purpose of providing deferred compensation for a select group
of management or highly compensated employees and may take such action as it
deems appropriate in connection with such a determination. Such interpretations
and determinations shall be final and conclusive as to all interested persons.

9.     Claims Procedure. If a claim for a BEP benefit is denied, in whole or in
part, a written notice of denial provided to the Participant shall state the
reasons for denial, a description of any additional material or information
required; and an explanation of the claim review procedure.

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Any person whose claim, upon his written request for review, is again denied may
make a second request for review. A decision on such second request shall
normally be made within sixty days.

10.     Amendment and Termination. Nothing herein shall be construed to constitute a
contract between TRW and the Participants to continue the BEP, and TRW Inc.’s
Directors in their sole discretion may terminate or discontinue the BEP at any
time and may at any time and from time to time amend any or all of its
provisions; provided, however, that no termination or amendment shall reduce
amounts credited prior to such termination or amendment.

11. Miscellaneous Provisions.

     a.     As used in this document, the masculine gender shall include the
feminine and the singular shall include the plural. To the extent that any term
is not defined under the BEP, it shall have the same meaning as defined in the
Stock Savings Plan.

     b.     Employment rights with TRW shall not be enlarged or affected by the
existence of the BEP.

     c.     In case any provision of the BEP shall be held illegal or invalid for
any reason, said illegality or invalidity shall not affect the remaining
provisions.

     d.     The BEP shall be governed by the laws of the State of Ohio, to the
extent not preempted by ERISA.

-5-EX-10(Z) Key Executive Life Insurance Plan

 

Exhibit 10(z)

TRW INC.

KEY EXECUTIVE LIFE INSURANCE PLAN

(Amended and Restated as of February 28, 2002)

	1.	 	Purpose
	 
	 	 	The purpose of the TRW Inc. Key Executive Life Insurance Plan (the
“Plan”) is to create a plan under which TRW Inc. (“TRW”) can assist
certain of its Executives and those of its subsidiaries and affiliates
in acquiring life insurance coverage.
	 
	2.	 	Definitions
	 
	 	 	For purposes of this Plan, the following terms have the meanings set
forth below:

	 	2.01	 	Agreement means the Agreement executed by a Participant
implementing the terms of this Plan.
	 
	 	2.02	 	Alternative Death Benefit Amount means, with respect to a
Participant, an amount which, after subtracting any TRW federal,
state, and local income tax savings resulting from the
deductibility of the payment for corporate tax purposes, is equal
to the Participant’s Coverage Amount. The Alternative Death
Benefit Amount shall be determined at the time the payment is to be
made, based on TRW’s federal, state and local income tax rate
(calculated at the highest marginal tax rate then applicable to TRW
but net of any federal deduction for state and local taxes) at the
time of the payment, and shall be determined by TRW.
	 
	 	2.03	 	Assignee means that person or entity to whom the
Participant has assigned his interest in the Policy by designating
such Assignee on forms provided by TRW. If the Participant’s
Policy is a Survivorship Policy and if the Participant has not
specifically designated an Assignee, then, after the Participant’s
death, if the Co-insured survives, the Assignee shall be that
person or entity who succeeds to the Participant’s interest in the
Participant’s Policy after the death of the Participant.

 

 

	 	2.04	 	Change in Control means a Change in Control of TRW, as such
term is defined in resolutions adopted by the Committee on February
28, 2002.
	 
	 	2.05	 	Co-Insured means the individual designated by the
Participant pursuant to Section 4 as a co-insured under a
Survivorship Policy issued pursuant to the Plan.
	 
	 	2.06	 	Committee means the Compensation Committee of the Directors
of TRW.
	 
	 	2.07	 	Coverage Amount means the insurance death benefit amount
indicated in the Participant’s Agreement.
	 
	 	2.08	 	Effective Date means February 7, 1996.
	 
	 	2.09	 	Eligible Position means a position reporting directly to
the Chief Executive Officer or a position designated as an Eligible
Position by the Chairman of TRW.
	 
	 	2.10	 	Executive means an employee of TRW (or of any subsidiary or
affiliate of TRW which is designated by the Plan Administrator to
participate in this Plan) who the Plan Administrator determines is
eligible to participate in the Plan.
	 
	 	2.11	 	Insurer means, with respect to a Participant’s Policy, the
insurance company issuing the Policy on the Participant’s life (or
on the lives of the Participant and a Co-insured, if a Survivorship
Policy is used) pursuant to the provisions of the Plan.
	 
	 	2.12	 	Participant means an eligible Executive who elects to
participate in the Plan.
	 
	 	2.13	 	Permanent Policy means a Participant’s Policy which is
projected to have Policy cash values at least equal to the
Participant’s Coverage Amount when the Participant reaches age 95
or, in the case of a Survivorship policy, the younger insured
reaches age 100 (the Maturity Date), and Policy death benefits
equal to at least 175% of the Participant’s Coverage Amount at all
times to the Maturity Date, considering premiums paid prior to the
time the determination is made, as well as future projected
premiums. The determination shall be made by TRW based on
projections provided by the Insurer or its agent. Projections
shall be based on then current mortality charges and the lower of:
(i) the dividend or interest crediting rate applicable

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	 	 	 	to the Policy at the time the determination is made, or (ii) the
monthly average of the applicable Policy dividend or interest
crediting rate for the thirty-six (36) months immediately
preceding the time of determination (or the monthly average for
such shorter period as data is available, if it is not available
for the full thirty-six (36) months).
	 
	 	2.14	 	Plan Administrator means with respect to a member of the
Management Committee of TRW, the Committee. For all other
Executives, the Plan Administrator means the Chief Executive
Officer of TRW.
	 
	 	2.15	 	Policy means the life insurance coverage acquired on the
life of the Participant (or on the lives of the Participant and a
Co-insured, in the case of a Survivorship Policy) by the owner of
the Policy.
	 
	 	2.16	 	Policy Surrender Value means, with respect to a
Participant’s Policy, the actual cash surrender value of the
Policy, net of any applicable surrender charges, which would be
available upon a complete surrender of the Policy.
	 
	 	2.17	 	Premium means, with respect to a Participant’s Policy, the
amount paid to the Insurer with respect to a Participant’s Policy.
	 
	 	2.18	 	Survivorship Policy means a Policy insuring the lives of
the Participant and a Co-insured, with the death benefit payable at
the death of the last survivor of the Participant and the
Co-insured.
	 
	 	2.19	 	Terminated for Cause means a determination made by the
Directors of TRW, at a hearing which the Participant may attend,
that a Participant has been terminated for cause, as that term is
defined in any written employment agreement existing between TRW
(or any subsidiary or affiliate of TRW) and the Participant; absent
any such agreement, or absent a definition of the term in the
agreement, the term shall mean the termination of the Participant’s
employment with TRW (or any subsidiary or affiliate of TRW) due to:
(i) fraud, misappropriation or intentional material damage to the
property or business of TRW (or any subsidiary or affiliate of
TRW); (ii) commission of a felony; or (iii) continuance of either
willful and repeated failure or grossly negligent and repeated
failure by the Participant to perform his duties.
	 
	 	2.20	 	Vested Executive means an Executive who is age 55 or older,
who has five or more Years of Service and who has been in an
Eligible

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	 	 	 	Position for at least three years; provided, that in the sole
discretion of, and by written action of, the Plan Administrator,
an Executive who is not age 55, who has fewer than five Years of
Service and/or who has not been in an Eligible Position for at
least three years may be designated a Vested Executive for the
limited purpose of this Plan. Notwithstanding the foregoing, an
Executive will not be treated as a Vested Executive if the
Executive is Terminated for Cause.
	 
	 	2.21	 	Year of Service shall have the definition specified in the
TRW Salaried Pension Plan, but shall in any case include any period
of time during which a Participant is receiving benefits under
TRW’s Long Term Disability Plan or is on an approved medical leave.

	3.	 	Eligibility and Coverage Amount
	 
	 	 	The eligibility of an Executive, as well as the applicable Coverage
Amount, will be determined by the Plan Administrator. If, during the
insurance application and underwriting process, it is determined that
the Executive’s health is such that the cost of the insurance would be
prohibitive, the Plan Administrator may, in its sole discretion,
determine that the Executive will not be eligible to participate in the
Plan, provide a reduced Coverage Amount, or take any other action it
deems appropriate.
	 
	4.	 	Type of Coverage
	 
	 	 	A Participant may elect single life coverage on the Participant’s life,
or survivorship coverage on the joint lives of the Participant and any
other person (subject to any requirements imposed by the Insurer with
respect to the person(s) who may be designated as a Co-Insured). Once
elected by the Participant, the type of coverage and the Co-Insured
cannot be changed without the consent of the Plan Administrator.
	 
	5.	 	Payment of Premiums

	 	5.01	 	TRW Payments. Subject to Sections 7.01, 7.02, 12.01 and
12.02, TRW shall pay all Policy Premiums necessary to maintain the
Policy death benefit at a level at least equal to the Participant’s
Coverage Amount.
	 
	 	5.02	 	Participant Payments. Unless otherwise provided in a
Participant’s Agreement, a Participant shall not be required to pay
any portion of the Premium due on the Participant’s Policy.

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	6.	 	Policy Ownership

	 	6.01	 	Ownership. TRW shall be the owner of a Participant’s
Policy and shall be entitled to exercise the rights of ownership,
except that the following rights shall be exercisable by the
Participant (or Assignee): (i) the right to designate the
beneficiary or beneficiaries to receive payment of the portion of
the death benefit under the Participant’s Policy equal to the
Coverage Amount; and (ii) the right to assign any part or all of
the Participant’s rights under the Policy to any person, entity or
trust by the execution of a written instrument prescribed by TRW
which is delivered to TRW. Also, except as provided in Section 7,
TRW shall not borrow from, hypothecate, surrender in whole or in
part, cancel, or in any other manner encumber a Participant’s
Policy without the prior written consent of the Participant’s
Assignee or, if there is no Assignee, the Participant.
	 
	 	6.02	 	Possession of Policy. TRW shall keep possession of the
Policy. TRW agrees to make the Policy available to the Participant
(or Assignee) or to the Insurer at such times as, and on such terms
as, TRW determines for the sole purposes of endorsing or filing any
change of beneficiary or assignment on the Policy.

	7.	 	Termination Events

	 	7.01	 	Termination Events. Except as provided in Section 7.02,
TRW’s obligation to pay Premiums with respect to a Participant’s
Policy shall terminate:

	 	a.	 	Automatically upon the death of the
Participant (or the death of the last survivor of the
Participant and the Co-insured, if the Policy is a
Survivorship Policy).
	 
	 	b.	 	Automatically upon a Participant’s
Termination for Cause.
	 
	 	c.	 	Upon the written action of the Plan
Administrator, if the Participant terminates employment with
TRW (or any subsidiary or affiliate of TRW) and such
termination is not a Termination for Cause.
	 
	 	d.	 	Automatically should a Participant provide
services above a de minimis level and without TRW’s consent
to an entity deemed a competitor of TRW’s at any time
following three years within the Participant’s termination
of employment. For purposes of this subsection, an entity
will be deemed a

5

 

	 	 	 	competitor if that entity and TRW could not have
interlocking directors under 15 U.S.C. Section 19, as the
same may be amended from time to time.
	 
	 	e.	 	Upon the mutual agreement of TRW and the
Participant’s Assignee (or the Participant, if there is no
Assignee).

	 	7.02	 	Irrevocable Obligation. Notwithstanding any other
provision of the Plan, (i) TRW’s obligation to pay Policy Premiums
for a Participant who meets the requirements for a Vested Executive
shall be irrevocable while such person is employed by TRW and shall
remain irrevocable thereafter, unless such Participant fails to
meet the definition of Vested Executive as a result of his being
Terminated for Cause or unless the provisions of Section 7.01 (d)
apply; and (ii) TRW’s obligation to pay Policy Premiums for a
Participant who obtains an irrevocable right pursuant to the
provisions of Section 9 hereof relating to Change in Control shall
thereafter be irrevocable.
	 
	 	7.03	 	Allocation of Death Benefits. In the event of a
termination due to the death of the Participant (or the death of
the last survivor of the Participant and the Participant’s
Co-insured, if the Policy is a Survivorship Policy), the death
benefit under the Participant’s Policy shall be divided as follows:

	 	a.	 	The beneficiary or beneficiaries of the
Participant (or Assignee) shall be entitled to receive an
amount equal to the Coverage Amount.
	 
	 	b.	 	TRW shall be entitled to receive the excess
of the death benefit.

	 	 	 	TRW agrees to execute an endorsement to the Policy issued to it
by the Insurer providing for the division of the death benefit in
accordance with the provisions of this Section. Notwithstanding
the provisions of this Section, if the Policy death benefit
becomes payable while there is an Alternative Death Benefit
Election in effect for the Participant pursuant to Section 8,
then the entire Policy death benefit shall be paid to TRW.
	 

	 	7.04	 	Disposition of Policy. If a Participant’s Agreement
terminates under Section 7.01(c) or (e), the Participant’s Assignee
(or the Participant, if there is no Assignee) may acquire the
Participant’s Policy from TRW by paying TRW an amount equal to the
Policy Surrender Value (or

6

 

	 	 	 	any lesser amount determined by the Plan Administrator). In
order to exercise this right, the person entitled to exercise the
right shall notify TRW, in writing, of the intention to exercise
the option to purchase the policy within sixty (60) days
following the event of termination. If TRW is so notified, TRW
shall, within thirty (30) days after being notified, provide a
written notice to the Assignee (or Participant, if there is no
Assignee) indicating the payment amount required. Within thirty
(30) days after receiving such notice from TRW, the Assignee (or
Participant, if there is no Assignee) shall make the required
payment to TRW. If the payment is not made within the required
time, the right to acquire the Policy shall terminate. If the
required payment is received on a timely basis, TRW shall submit
to the Insurer, within ten (10) business days after receiving the
payment, the forms required to transfer the Policy ownership to
the Assignee (or Participant, if there is no Assignee). If the
Assignee (or Participant, if there is no Assignee) does not
exercise his or her rights to acquire the Participant’s Policy,
the Assignee’s (or Participant’s) rights under the Plan shall
terminate, and TRW may, thereafter, take any action it deems
appropriate with respect to the Participant’s Policy, free from
any restrictions or limitations imposed by the Plan.

	8.	 	Alternative Death Benefit Election

	 	 	A Participant (or the Participant’s Assignee, if the Participant has
assigned his or her Policy interest) may elect to receive an Alternative
Death Benefit in lieu of the insurance benefit provided under the Plan.
The Alternative Death Benefit shall be paid by TRW from the general
funds of TRW, and shall not constitute an insurance benefit. It shall
be paid by TRW to the Participant’s (or Assignee’s) beneficiary at the
time the Participant’s insurance benefit would have been paid (at the
Participant’s death for single life coverage, or at the death of the
survivor of the Participant and the Participant’s Co-Insured for
survivorship coverage). The amount of the payment shall be equal to the
Alternative Death Benefit Amount. As long as an Alternative Death
Benefit Election is in effect, the beneficiary or beneficiaries of the
Participant (or Assignee) shall receive the Alternative Death Benefit
only, and shall not be entitled to receive any portion of any death
benefits which become payable under the Participant’s Policy, and the
Participant (or Assignee) shall cooperate with TRW in effecting a change
of beneficiary of the Participant’s Policy to achieve such result. An
election under this Section may be revoked. Any election (or revocation
of an election) shall be in writing and shall be effective when received
by TRW. A Participant (or Assignee) shall not be limited in the number
of times an Alternative Death Benefit Election can be made (or revoked).

7

 

	9.	 	Change in Control
	 
	 	 	If there is a Change in Control:

	 	a.	 	the Plan and TRW’s obligation to pay Policy Premiums
hereunder shall become irrevocable for all Participants in the Plan
at the time of the Change in Control;
	 
	 	b.	 	TRW shall immediately transfer the ownership of all
Participants’ Policies to an irrevocable trust to: 1) pay any
premiums projected to be payable on all Participants’ Policies
after the Change in Control, in order to qualify each Participant’s
Policy as a Permanent Policy, and 2) pay any Alternative Death
Benefit which becomes payable under Section 8 of this Plan; and c.
TRW shall immediately fund such irrevocable trust with an amount
sufficient to pay all necessary projected future premiums for all
Participants’ Policies in order to qualify each Participant’s
Policy as a Permanent Policy.

	 	 	Notwithstanding the creation and funding of an irrevocable trust in
accordance with the provisions of this Section, TRW, or its successor,
shall continue to be responsible for the premium costs associated with
the Participants’ Policies and any Alternative Death Benefits payable
under Section 8 if such amounts are not paid by the trust for any
reason, or if the trust’s assets become insufficient to pay any required
amounts.
	 
	10.	 	Governing Laws & Notices

	 	10.01	 	Governing Law. This Plan shall be governed by and
construed in accordance with the substantive law of the State of
Ohio without giving effect to the choice of law rules of the State
of Ohio.
	 
	 	10.02	 	Notices. All notices hereunder shall be in writing and
sent by first class mail with postage prepaid. Any notice to TRW
shall be addressed to the Attention of the Secretary at TRW Inc.,
1900 Richmond Road, Lyndhurst, Ohio 44124. Any notice to the
Participant (or Assignee) shall be addressed to the Participant (or
Assignee) at the address following such party’s signature on his
Agreement. Any party may change the address for such party herein
set forth by giving written notice of such change to the other
parties pursuant to this Section.

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	11.	 	Miscellaneous Provisions

	 	11.01	 	This Plan and any Agreement executed hereunder shall not
be deemed to constitute a contract of employment between an
Executive and TRW or a Participant and TRW, nor shall any provision
restrict the right of TRW to discharge an Executive or Participant,
or restrict the right of an Executive or Participant to terminate
employment.
	 
	 	11.02	 	The masculine pronoun includes the feminine and the
singular includes the plural where appropriate.
	 
	 	11.03	 	In order to be eligible to participate in this Plan, the
Participant and any person proposed as a Co-Insured shall cooperate
with the Insurer by furnishing any and all information requested by
the Insurer in order to facilitate the issuance of the Policy,
including furnishing such medical information and taking such
physical examinations as the Insurer may deem necessary. In the
absence of such cooperation, TRW shall have no further obligation
to the Participant to allow him to begin participation in the Plan.
	 
	 	11.04	 	If a Participant (or a Co-insured, if the Participant’s
Policy is a Survivorship Policy) commits suicide within two years
of the Participant Policy’s issue, or if the Participant (or
Co-insured, if the Participant’s Policy is a Survivorship Policy)
makes any material misstatement of information or nondisclosure of
medical history and dies within two years of the Participant’s
Policy’s issue, then no benefits will be payable to the beneficiary
of such Participant (or of the Participant’s Assignee, where
applicable).

	12.	 	Amendment, Termination, Administration, and Successors

	 	12.01	 	Amendment. This Plan may be modified or amended by TRW at
any time, but an amendment which affects the rights, benefits or
obligations of a Participant (or his Assignee) for whom TRW’s
obligation to pay premiums has become irrevocable under Section
7.02 will not apply to such Participant (or his Assignee) unless
such Participant (or his Assignee) consents, in writing, to the
amendment.
	 
	 	12.02	 	Termination. The Directors of TRW may terminate the Plan
at any time, but no such termination shall affect the rights,
benefits or obligations of a Participant (or his Assignee) for whom
TRW’s obligation to pay premiums has become irrevocable under
Section

9

 

	 	 	 	7.02 unless such Participant (or his Assignee) consents, in
writing, to such termination.
	 
	 	12.03	 	Administration. This is a life insurance plan maintained
for the benefit of selected employees of TRW Inc., 1900 Richmond
Rd., Lyndhurst, Ohio 44124 and any of its subsidiaries or
affiliates as determined by the Plan Administrator. TRW’s Employer
Identification Number is 34-0575430 and the plan number of this
Plan is 552. This Plan shall be administered by the Plan
Administrator, whose address is TRW Inc., 1900 Richmond Rd.,
Lyndhurst, Ohio 44124, Attention: Secretary. The Plan
Administrator shall have the authority to make, amend, interpret,
and enforce all rules and regulations for the administration of the
Plan and decide or resolve any and all questions, including
interpretations of the Plan, as may arise in connection with the
Plan in the Plan Administrator’s sole discretion. In the
administration of this Plan, the Plan Administrator may, from time
to time, employ agents and delegate to them or to others (including
Executives) such administrative duties as it sees fit. The Plan
Administrator may from time to time consult with counsel, who may
be counsel to TRW. The decision or action of the Plan
Administrator (or its designee) with respect to any question
arising out of or in connection with the administration,
interpretation and application of this Plan shall be final and
conclusive and binding upon all persons having any interest in the
Plan. TRW shall indemnify and hold harmless the Plan Administrator
and any Executives to whom administrative duties under this Plan
are delegated, against any and all claims, loss, damage, expense or
liability arising from any action or failure to act with respect to
this Plan, except in the case of gross negligence or willful
misconduct by the Plan Administrator.
	 
	 	12.04	 	Successors. The terms and conditions of this Plan shall
inure to the benefit of and bind TRW and the Participant and their
successors, assignees, and representatives.

	13.	 	Claims Procedure; Plan Information

	 	13.01	 	Named Fiduciary. The Plan Administrator is hereby
designated as the named fiduciary under this Plan. The named
fiduciary shall have authority to control and manage the operation
and administration of this Plan.
	 
	 	13.02	 	Claims Procedures. Any controversy or claim arising out
of or relating to this Plan shall be filed with the Plan
Administrator, TRW

10

 

	 	 	 	Inc., 1900 Richmond Rd., Lyndhurst, OH. 44124, Attention:
Secretary. The Plan Administrator shall make all determinations
concerning such claim. Any decision by the Plan Administrator
denying such claim shall be in writing and shall be delivered to
all parties in interest in accordance with the notice provisions
of Section 10.02 hereof. Such decision shall set forth the
reasons for denial in plain language. Pertinent provisions of
the Plan shall be cited and, where appropriate, an explanation as
to how the claimant can perfect the claim will be provided. This
notice of denial of benefits will be provided within 90 days of
the Plan Administrator’s receipt of the claimant’s claim for
benefits. If the Plan Administrator fails to notify the claimant
of its decision regarding the claim, the claim shall be
considered denied, and the claimant shall then be permitted to
proceed with the appeal as provided in this Section.
	 
	 	 	 	A claimant who has been completely or partially denied a benefit
shall be entitled to appeal this denial of his/her claim by
filing a written statement of his/her position with the Plan
Administrator no later than sixty (60) days after receipt of the
written notification of such claim denial. The Plan
Administrator shall schedule an opportunity for a full and fair
review of the issue within thirty (30) days of receipt of the
appeal. The decision on review shall set forth specific reasons
for the decision, and shall cite specific references to the
pertinent Plan provisions on which the decision is based.
Following the review of any additional information submitted by
the claimant, either through the hearing process or otherwise,
the Plan Administrator shall render a decision on the review of
the denied claim in the following manner:
	 

	 	a.	 	The Plan Administrator shall make its
decision regarding the merits of the denied claim within 60
days following receipt of the request for review (or within
120 days after such receipt, in a case where there are
special circumstances requiring extension of time for
reviewing the appealed claim). The Plan Administrator shall
deliver the decision to the claimant in writing. If an
extension of time for reviewing the appealed claim is
required because of special circumstances, written notice of
the extension shall be furnished to the claimant prior to
the commencement of the extension. If the decision on
review is not furnished within the prescribed time, the
claim shall be deemed denied on review.

11

 

	 	b.	 	The decision on review shall set forth
specific reasons for the decision, and shall cite specific
references to the pertinent Plan provisions on which the
decision is based.
	 

	 	13.03	 	Agent for Service of Process. The agent for service of
process on the Plan shall be the Secretary, TRW Inc., 1900 Richmond
Rd., Lyndhurst, Ohio 44124. Service of legal process may also be
made upon the Plan Administrator at the same address.
	 
	 	13.04	 	Plan Year. The plan year of the Plan shall be the
calendar year.
	 
	 	13.05	 	ERISA Rights. As a participant in the Plan, you are
entitled to examine, without charge at the Plan Administrator’s
office, all Plan documents filed for the Plan with the U. S.
Department of Labor, such as annual reports, and obtain copies of
all Plan documents and other Plan information upon written request
to the Plan Administrator. The Plan Administrator may make a
reasonable charge for the copies. You are entitled to 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. In addition to creating rights
for Plan Participants, ERISA imposes obligations upon the persons
who are responsible for the operation of the employee benefit plan.
These persons are referred to as “fiduciaries” in the law.
Fiduciaries must act in the interest of the Plan Participants and
do so prudently. Fiduciaries who violate ERISA may be removed and
required to make good any losses they have caused the Plan. Your
employer may not fire you or discriminate against you to prevent
you from obtaining a benefit or exercising your rights under ERISA.
If you are improperly denied a benefit in full or in part, you
have a right to file suit in a federal or state court. You may
also file suit in federal court if any Plan documents or any other
materials you requested are not received within 30 days of your
written request, and the court may require the Plan Administrator
to pay up to $100 for each day’s delay until the materials are
received, unless the failure was beyond the control of the Plan
Administrator. If Plan fiduciaries are misusing the plan’s money,
or if you are discriminated against for asserting your rights, you
have the right to file suit in federal court or request assistance
from the U. S. Department of Labor. The court will decide who
should pay court costs and legal fees. If you are successful in
your lawsuit, the court may, if it so decides, require the other
party to pay your legal costs, including attorney’s fees. If you
lose, the court may order you to pay these costs and fees if, for
example, it finds your claim is frivolous. If you have any
questions about this

12

 

	 	 	 	statement or your rights under ERISA, you should contact the Plan
Administrator or the nearest Area Office of the U. S.
Labor-Management Service Administration, Department of Labor.

13

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