Document:

Exhibit 10.2

 

Annual RSUs - 2017 form

 

THE McCLATCHY COMPANY

2012 OMNIBUS INCENTIVE PLAN

RESTRICTED STOCK UNIT AGREEMENT

 

THIS RESTRICTED STOCK UNIT AGREEMENT (the
“Agreement”) is entered into as of February 23, 2017 (the “Grant Date”), by and between THE McCLATCHY COMPANY,
a Delaware corporation (the “Company”), and [_______] (the “Grantee”).

 

W I T N E S S E T H:

 

WHEREAS, the Board
of Directors of the Company has established THE McCLATCHY COMPANY 2012 OMNIBUS INCENTIVE PLAN (as it may be amended from
time to time, the “Plan”) in order to provide selected employees of the Company and its Affiliates with an opportunity
to acquire shares of the Company’s Class A Common Stock (“Stock”); and

 

WHEREAS, the Committee
has determined that it would be in the best interests of the Company and its stockholders to grant the Restricted Stock Units described
in this Agreement to the Grantee as an inducement to remain in the service of the Company and as an incentive for extraordinary
efforts during such service.

 

NOW, THEREFORE, it
is agreed as follows:

 

SECTION 1. GRANT
OF RESTRICTED STOCK UNITS.

 

(a)       Grant.
The Company hereby grants to the Grantee an award of [_______] Restricted Stock Units,
each such unit representing a share of Stock, subject to the terms and conditions stated below.

 

(b)       Plan.
The Restricted Stock Units under this Agreement are granted pursuant to the Plan, a copy of which the Grantee acknowledges having
received and read. The provisions of the Plan are incorporated into this Agreement by reference, and any defined terms not defined
herein shall have the meaning prescribed in the Plan.

 

SECTION 2. NO
TRANSFER OR ASSIGNMENT OF RESTRICTED STOCK UNITS.

 

To the extent not yet
settled, the Restricted Stock Units granted hereunder and the rights and privileges conferred hereby shall not be transferred,
assigned, pledged or hypothecated in any way (whether by operation of law or otherwise) and shall not be subject to sale under
execution, attachment or similar process. Upon any attempt to transfer, assign, pledge, hypothecate or otherwise dispose of the
Restricted Stock Units, or of any right or privilege conferred hereby, contrary to the provisions hereof, or upon any attempted
sale under any execution, attachment or similar process upon the rights and privileges conferred hereby, the Restricted Stock Units
and the rights and privileges conferred hereby shall immediately become null and void.

 

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Annual RSUs - 2017 form

 

 

SECTION 3. VESTING
AND FORFEITURE.

 

(a)       Vesting.
These Restricted Stock Units shall vest in installments only to the extent the Grantee remains in Service on such date listed below
(each, a “Vesting Date”), as follows:

 

	Vesting Date:	 	
        Percentage of

        Shares of Stock Vested:

	March 1, 2018	 	33.33%
	March 1, 2019	 	66.67%
	March 1, 2020	 	100%

 

(b)       Acceleration
Upon Termination Without Cause, Resignation for Good Reason or in the Event of Death or Disability. Notwithstanding any
contrary provision of the Plan or this Agreement, but subject to the delivery requirements of Section 5 below, the Restricted Stock
Units awarded under this Agreement shall become fully vested in the event the Grantee is involuntarily terminated by the Company
without Cause, resigns from the Company for Good Reason or terminates employment with the Company on account of death or Disability.

 

(i)       
Cause. For purposes of this Agreement, “Cause” shall mean (A) a willful failure by the Grantee
to substantially perform the duties of his or her position with the Company, other than a failure resulting from the Grantee’s
complete or partial incapacity due to physical or mental illness or impairment, or (B) a willful act by the Grantee which constitutes
gross misconduct and which is materially injurious to the Company. No act, or failure to act, by the Grantee shall be considered
“willful” unless committed without a reasonable belief that the act or omission was in the Company’s best interest.

 

(ii)       Good
Reason. For purposes of this Agreement, “Good Reason” means the occurrence of any of the following circumstances,
without the Grantee’s express written consent, unless, if correctable, such circumstances are fully corrected within 30 days
of the notice of termination given in respect thereof: (A) a material diminution in the Grantee’s base compensation; (B)
a material diminution in the Grantee’s authority, duties, or responsibilities; or (C) the geographic location at which the
Grantee performs his or duties as of the date hereof is changed by a distance of more than 50 miles (except for required travel
on Company business to the extent substantially consistent with the Grantee’s business travel obligations); provided further
that a resignation shall not be considered to have been on account of Good Reason unless the Grantee provides the Company not less
than 60 days’ advance notice in writing within 90 days of the initial occurrence of the condition that is the basis for such
Good Reason and the Company does not correct the condition in the time frame described above.

 

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Annual RSUs - 2017 form

 

 

(c)       Acceleration
upon Termination (other than without Cause, for Good Reason or in the Event of Death or Disability). Notwithstanding any
contrary provision of the Plan or this Agreement, but subject to the delivery requirements of Section 5 below, the Restricted Stock
Units awarded under this Agreement shall become fully vested in the event that (A) the Grantee’s Service is terminated on
or after the first Vesting Date under Section 3(a) for any reason (other than upon termination without Cause, resignation for Good
Reason, or termination on account of death or Disability) and (B) the Grantee has accumulated 10 or more continuous years of Service
and is 55 years of age or older at the time of such termination of Service.

(d)       Acceleration
upon Change in Control. Notwithstanding any contrary provision of the Plan or this Agreement, upon a Change in Control
while the Grantee remains in Service, the Grantee immediately shall become fully vested in the Restricted Stock Units under this
Agreement.

 

(e)       Forfeiture.
If vesting has not otherwise been accelerated as provided in this Section 3, the Grantee shall immediately forfeit all unvested
Restricted Stock Units awarded under this Agreement upon his or her termination of Service with the Company.

 

(f)       Leaves
of Absence. For purposes of this Agreement, the Grantee’s Service does not terminate when the Grantee goes on a bona
fide leave of absence that was approved by the Company in writing if the terms of the leave provide for continued Service crediting,
or when continued Service crediting is required by applicable law. The Grantee’s Service terminates in any event when the
approved leave ends unless the Grantee immediately returns to active employee work. The Committee determines, in its sole discretion,
which leaves count for this purpose, and when the Grantee’s Service terminates for all purposes under the Plan.

  

SECTION 4. STOCKHOLDER
RIGHTS.

 

The Grantee will have
no rights as a stockholder unless and until the Grantee becomes vested in accordance with Section 3, thereby becoming the holder
of record of shares of Stock upon delivery of the Stock. In accordance therewith, the Grantee shall not be credited with Dividend
Equivalent Rights on the Restricted Stock Units to the extent of dividends issued on shares of Stock.

 

SECTION 5. SETTLEMENT
OF RESTRICTED STOCK UNITS.

 

(a)       Delivery
of Shares of Stock. In the event the Grantee becomes vested in all or a portion of the Restricted Stock Units under this
Agreement, the Restricted Stock Units shall be settled by delivery of shares of Stock in respect of each Restricted Stock Unit
on the earlier of (i) the date the Grantee’s Restricted Stock Units vest pursuant to the vesting schedule specified in Section
3(a) or as accelerated pursuant to Section 3(d) and, except as required below in paragraph (b), the date of such vesting shall
be the record date of the Grantee’s ownership of the shares of Stock; or (ii) the first day of the seventh month following
the date of the Grantee’s termination of Service (or the date of the Grantee’s death, if earlier) and, except as required
below in paragraph (b), the first day of the seventh month following the date of the Grantee’s termination of Service (or
the date of the Grantee’s death, if earlier) shall be the record date of Grantee’s ownership of the shares of Stock
(such earlier date, the “Payout Date”). Any fractional shares shall be delivered in cash. The certificates for the
shares of Stock so delivered may be recorded using the book-entry method of recording share issuance and dividends. To the extent
shares of Stock delivered in accordance with this Agreement is used to cover applicable tax withholding (as described below) the
certificate shall be accompanied by a duly executed Assignment Separate from Certificate in the form attached hereto as Exhibit
A.

 

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Annual RSUs - 2017 form

 

 

(b)       Delayed
Delivery. In no event will the Stock be delivered beyond December 31 of the calendar year in which the Payout Date occurs;
provided that delivery of Stock shall be delayed to the extent the Committee reasonably anticipates that making payment would violate
Federal securities laws or other applicable law, in which case the Stock shall instead be delivered at the earliest date at which
the Committee reasonably anticipates that undertaking the delivery will not give rise to the violation just described.

 

SECTION 6. LEGALITY
OF INITIAL ISSUANCE.

 

No shares of Stock
shall be issued upon the vesting of all or a portion of this Award unless and until the Company has determined that:

 

(a)       It
and the Grantee have taken any actions required to register the shares of Stock under the Securities Act or to perfect an exemption
from the registration requirements thereof;

 

(b)       Any
applicable listing requirement of any stock exchange on which the shares of Stock is listed has been satisfied; and

 

(c)       Any
other applicable provision of state or federal law has been satisfied.

 

SECTION 7. NO REGISTRATION
RIGHTS.

 

The Company may, but
shall not be obligated to, register or qualify the sale of the shares of Stock under the Securities Act or any other applicable
law. The Company shall not be obligated to take any affirmative action in order to cause the sale of the shares of Stock under
this Agreement to comply with any law.

 

SECTION 8. RESTRICTIONS
ON TRANSFER OF SHARES OF STOCK.

 

Regardless of whether
the offering and sale of the shares of Stock under the Plan have been registered under the Securities Act or have been registered
or qualified under the securities laws of any state, the Company may impose restrictions upon the sale, pledge or other transfer
of such shares of Stock (including the placement of appropriate legends on stock certificates) if, in the judgment of the Company
and its counsel, such restrictions are necessary or desirable in order to achieve compliance with the provisions of the Securities
Act, the securities laws of any state or any other law.

 

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Annual RSUs - 2017 form

 

 

SECTION 9. ADJUSTMENT
OF STOCK.

 

(a)       General.
If the number of outstanding shares of common stock is increased or decreased or the shares of common stock are changed into or
exchanged for a different number or kind of Stock or other securities of the Company on account of any recapitalization, reclassification,
stock split, reverse split, combination of Stock, exchange of Stock, stock dividend or other distribution payable in capital stock,
or other increase or decrease in such Stock effected without receipt of consideration by the Company occurring after the Grant
Date, the Committee shall make appropriate adjustments in the number of shares of Restricted Stock Units covered by this grant.

 

(b)       Merger
or Reorganization. In the event that the Company is a party to a merger or other reorganization, this grant shall be subject
to the agreement of merger or reorganization. Such agreement may provide, without limitation, for the assumption of this grant
by the surviving corporation or its parent, for its continuation by the Company (if the Company is a surviving corporation) or
for settlement in cash.

 

(c)       Reservation
of Rights. Except as provided in this Section 9, the Grantee shall have no rights by reason of any subdivision or consolidation
of shares of Stock of any class, the payment of any stock dividend or any other increase or decrease in the number of shares of
Stock of any class. Any issue by the Company of shares of Stock of any class, or securities convertible into shares of Stock of
any class, shall not affect, and no adjustment by reason thereof shall be made with respect to, the number of Restricted Stock
Units subject to this grant. The award of this grant shall not affect in any way the right or power of the Company to make adjustments,
reclassifications, reorganizations or changes of its capital or business structure, to merge or consolidate or to dissolve, liquidate,
sell or transfer all or any part of its business or assets.

 

SECTION 10. CERTAIN
CUT-BACK OF PAYMENTS.

 

Notwithstanding anything
to the contrary in this Agreement, if payments made pursuant to this Agreement are considered “parachute payments”
under Code Section 280G, then the sum of such parachute payments plus any other payments made by the Company to the Grantee which
are considered parachute payments shall be limited to the greatest amount which may be paid to the Grantee under Code Section 280G
without causing any loss of deduction to the Company under such section; but only if, by reason of such reduction, the Committee
reasonably determines that the net after tax benefit of Grantee shall exceed the net after tax benefit if such reduction were not
made.  The Company shall accomplish any such reduction required pursuant to this Section 10 by first reducing or eliminating
any cash payments (with the payments to be made furthest in the future being reduced first), then by reducing or eliminating any
accelerated vesting of Performance-Based Awards, then by reducing or eliminating any accelerated vesting of Options or SARs, then
by reducing or eliminating any accelerated vesting of Restricted Stock or Restricted Stock Units, then by reducing or eliminating
any other remaining parachute payments.

 

SECTION 11. MISCELLANEOUS
PROVISIONS.

 

(a)       Withholding
Taxes. In the event that the Company determines that it is required to withhold foreign, federal, state or local tax as
a result of the vesting of Restricted Stock Units and delivery of shares of Stock pursuant to this Agreement, the Grantee, as a
condition to the vesting of the Restricted Stock Units, shall make arrangements satisfactory to the Company to enable it to satisfy
all withholding requirements. Satisfactory arrangements shall include share withholding and delivery of previously owned Stock
acquired pursuant to this Agreement in an amount equal to the minimum applicable withholding or other taxes due.

 

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Annual RSUs - 2017 form

 

 

(b)       No
Employment Rights. Nothing in this Agreement shall be construed as giving the Grantee the right to be retained as an employee
or in any Service capacity. The Company reserves the right to terminate the Grantee’s service at any time and for any reason.

 

(c)       Notice.
Any notice required by the terms of this Agreement shall be given in writing and shall be deemed effective upon personal delivery
or upon deposit with the United States Postal Service, by registered or certified mail with postage and fees prepaid and addressed
to the party entitled to such notice at the address shown below such party’s signature on this Agreement, or at such other
address as such party may designate by 10 days’ advance written notice to the other party to this Agreement.

 

(d)       Consent
to Electronic Delivery. The Company may choose to deliver certain statutory materials relating to the Plan in electronic
form. By accepting this grant, Grantee agrees that the Company may deliver the Plan prospectus and the Company’s annual report
to the Grantee in electronic format. If at any time the Grantee prefers to receive paper copies of such documents, as the Grantee
is entitled to, the Company will provide copies. Request for paper copies of such documents may be made to the Secretary of the
Company at 916-321-1828 or bmcconkey@mcclatchy.com.

 

(e)       Entire
Agreement. This Agreement and the Plan constitute the entire contract between the parties hereto with regard to the subject
matter hereof.

 

(f)       Choice
of Law. This Agreement shall be governed by, and construed in accordance with, the laws of the State of Delaware, as such
laws are applied to contracts entered into and performed in such State.

 

(g)        Code
Section 409A. It is intended that this Agreement comply with Section 409A of the Code (“Section 409A”) to the
extent subject thereto, and, accordingly, to the maximum extent permitted, the Agreement shall be interpreted and administered
to be in compliance with Section 409A. To the extent that the Company determines that the Grantee would be subject to the additional
taxes or penalties imposed on certain nonqualified deferred compensation plans pursuant to Section 409A as a result of any provision
of this Agreement, such provision shall be deemed amended to the minimum extent necessary to avoid application of such additional
taxes or penalties. The Company shall determine the nature of any such amendment. Notwithstanding anything to the contrary in this
Agreement, for purposes of any provision of this Agreement providing for the delivery of any shares of Stock upon or following
a termination of employment or a termination of Service that are considered “deferred compensation” under Section 409A,
references to the Grantee’s “termination of employment” or “termination of Service” (and corollary
terms) with the Company shall be construed to refer to the Grantee’s “separation from service” (as defined for
purposes of Section 409A).

  

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Annual RSUs - 2017 form

 

 

IN WITNESS WHEREOF,
the Company has caused this Agreement to be executed on its behalf by its officer duly authorized to act on behalf of the Committee,
and the Grantee has personally executed this Agreement.

 

	 	THE McCLATCHY COMPANY
	 	 	 
	 	 	 
	 	By	 
	 	 	Secretary
	 	 	 
	 	Company’s Address:
	 	 	 
	 	 	2100 Q Street
	 	 	Sacramento, CA 95816

 

	 	GRANTEE
	 	 
	 	 
	 	 
	 	 
	 	Grantee’s Address: 
	 	 
	 	 
	 	 
	 	 

  

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EXHIBIT A

 

ASSIGNMENT SEPARATE
FROM CERTIFICATE

 

FOR VALUE RECEIVED,
_____________hereby sells, assigns and transfers unto The McClatchy Company, a Delaware corporation (the “Company”),
____________ (__________) shares of Class A common stock of the Company represented by Certificate No. ___ herewith and does hereby
irrevocable constitute and appoint ______________ attorney to transfer the said stock on the books of the Company with full power
of substitution in the premises.

Dated:____________, 20___

 

	 	 
	 	Print Name
	 	 
	 	 
	 	 
	 	Signature

 

Spouse Consent (if applicable)

 

___________________
(Purchaser’s spouse) indicates by the execution of this Assignment his or her consent to be bound by the terms herein as
to his or her interests, whether as community property or otherwise, if any, in the shares of Class A common stock of the Company.

 

	 	 
	 	Signature

 

 

INSTRUCTIONS: PLEASE DO NOT FILL IN
ANY BLANKS OTHER THAN THE SIGNATURE LINE. THE PURPOSE OF THIS ASSIGNMENT IS TO ENABLE THE COMPANY TO CANCEL SHARES OF STOCK IN
CONNECTION WITH SHARE WITHHOLDING FOR SATISFACTION OF TAX WITHHOLDING, AS APPLICABLE, AT SUCH TIME AS ANY SHARES OF STOCK ARE DELIVERED
UNDER THE AGREEMENT.

 

    	 	A-1Exhibit

Exhibit 10.1

TRANSITION AND RETIREMENT AGREEMENT 

		
	1.
	PARTIES:  The parties to this Transition and Retirement Agreement (“Agreement”) are THOMAS E. VICE (“Mr. Vice”) and NORTHROP GRUMMAN SYSTEMS CORPORATION (“Northrop Grumman” or “the Company”).

		
	2.
	RECITALS:   

		
	2.1
	Mr. Vice has decided to retire effective August 18, 2017, and to transition out of his current position on April 1, 2017, to enable him to support an effective transition for his successor and to support corporate initiatives until his retirement.  He will remain a Corporate Vice President and continue to report to the CEO, with a primary office location of Falls Church, VA until he retires on August 18, 2017.

		
	2.2
	As a Corporate Vice President, Mr. Vice has been and continues to be involved in managing the global operations of Northrop Grumman, including the capture and development of key programs critical to the long-term success of the Company.  He is involved in the most sensitive and proprietary matters across the entire Company, including from a technical, strategic and financial perspective. Mr. Vice has been widely and regularly exposed to confidential, sensitive and proprietary information concerning Northrop Grumman’s global operations, at the headquarters and each of the operating sectors, including without limitation, in the areas of manned and unmanned aircraft, space, C4ISR, strike systems, cyber, sensors, electronics, through-life support and technology services.  Mr. Vice has been widely and regularly exposed to confidential, sensitive and proprietary information relating to the Company’s short and long-term strategies, personnel, culture, leadership, finances, investments, technologies and customers.

		
	2.3
	Northrop Grumman is a Delaware corporation headquartered in the Commonwealth of Virginia.  Mr. Vice’s job responsibilities have required him to spend substantial time working in Virginia, including among other things, attending corporate, sector and other leadership meetings, meeting with senior management on major programs and strategies, meeting with partners and customers, and managing operations and employees in Virginia and worldwide. 

		
	2.4
	Mr. Vice and the Company have agreed to the retirement plan and timing described in Section 2.1 of this Agreement, to the benefits and compensation described in Section 3 of this Agreement, and the other terms of this Agreement, including Exhibit A.

		
	3.
	JOB TRANSITION AND BENEFITS:  In exchange for the benefits and covenants set forth herein and other good and valid consideration, the receipt and sufficiency of which is hereby acknowledged, the Company and Mr. Vice hereby agree as follows:

Page 1 of 15
        

 

		
	3.1
	The Company will continue Mr. Vice’s employment until August 18, 2017, subject to the Company’s right to terminate Mr. Vice for Cause.  For purposes of this Section 3.1, “Cause” includes any of the following:  (i) Mr. Vice’s failure to perform his assigned duties in accordance with the Company’s expected standards after being given written notice of deficiency, or (ii) Mr. Vice’s commission of an act of misconduct, or (iii) Mr. Vice’s conviction of any crime or loss of security clearance.  

		
	3.2
	Mr. Vice will step down as President, Aerospace Systems sector, effective April 1, 2017, and perform duties assigned by the CEO until his retirement on August 18, 2017.  

		
	3.3
	Mr. Vice will remain an elected Corporate Vice President reporting to the Chief Executive Officer, and continue as a full-time employee up to and including his Retirement Date (as defined in Section 4 below).  Falls Church, VA will be his primary work location.

		
	3.4
	The Company will pay Mr. Vice an annual incentive bonus for the 2017 performance year, as if he had remained employed and eligible under the 2002 Incentive Compensation Plan, prorated to 7.5/12ths, subject to his ongoing and continued compliance with the terms and conditions of this Agreement (including without limitation the provisions of Sections 6 and 3.6).  Subject to these conditions and proration, the payment, less applicable withholding, will be made to Mr. Vice in 2018 on or before March 15, 2018.  If Mr. Vice breaches this Agreement, he will not be entitled to any payment under this Section 3.4, and if he has already received the payment, he will immediately return the full payment amount to the Company.

		
	3.5
	Mr. Vice is eligible for certain equity treatment with respect to his grants and stock holdings under the 2001 Long-Term Incentive Stock Plan and 2011 Long-Term Incentive Stock Plan, as follows:

		
	3.5.1
	Mr. Vice will receive his Early Retirement treatment of his 2015, 2016, and 2017 Restricted Stock Rights (RSR) grants, provided (i) Mr. Vice’s employment continues through August 18, 2017; and (ii) the Company has determined that Mr. Vice has complied and continues to comply with all of his obligations under the 2015-2017 RSR Terms and this Agreement (including without limitation the provisions of Sections 6 and 3.6).  The Parties agree to modify, by this Agreement, Section 2.7 of the Terms and Conditions Applicable to 2015 Restricted Stock Rights,  Terms and Conditions Applicable to 2016 Restricted Stock Rights, and Terms and Conditions Applicable to 2017 Restricted Stock Rights (“2015-2017 RSR Terms”) so that Mr. Vice, as a Key Employee, will receive payment of the prorated RSRs (and related Dividend Equivalents) on or before December 31, 2018 (but no earlier than six months and one day after his Separation from Service, as defined for purposes of the 2015-2017 RSR Terms); such payment date is permissible under Section 409A of the Internal Revenue Code because payment will be made in the same year it is otherwise owed.  If Mr. Vice breaches the 2015-2017 RSR Terms or this Agreement, he 

Page 2 of 15

 

agrees to deliver to the Company immediately upon request an amount in cash equal to the aggregate Fair Market Value, determined as of the payment date of all RSRs already settled, including any Dividend Equivalents.  Except as modified hereby, the 2015-2017 RSR Terms shall continue to apply in accordance with their terms.
		
	3.5.2
	Mr. Vice will receive his Early Retirement treatment of his 2015 Restricted Performance Stock Rights (RPSR) grant, provided (i) Mr. Vice’s employment continues through July 30, 2017; and (ii) the Company determines that Mr. Vice has complied and continues to comply with all of his obligations under 2015 RPSR Terms and this Agreement (including without limitation the provisions of Sections 6 and 3.6).  The Parties agree to modify, by this Agreement, Section 1.2 of the Terms and Conditions Applicable to 2015 Restricted Performance Stock Rights (“2015 RPSR Terms”) so that Mr. Vice will receive payment of the prorated RPSRs (and related Dividend Equivalents) in 2018 on or before March 15, 2018.  If Mr. Vice breaches the 2015 RPSR Terms or this Agreement, he agrees to deliver to the Company immediately upon request an amount in cash equal to the aggregate Fair Market Value, determined as of the payment date of all RPSRs already settled, including any Dividend Equivalents.  Except as modified hereby, the 2015 RPSR Terms shall continue to apply in accordance with their terms.

		
	3.5.3
	Mr. Vice will receive his Early Retirement treatment of his 2016 Restricted Performance Stock Rights (RPSR) grant, provided (i) Mr. Vice’s employment continues through July 30, 2017; and (ii) the Company determines that Mr. Vice has complied and continues to comply with all of his obligations under 2016 RPSR Terms and this Agreement (including without limitation the provisions of Section 6 and 3.6).  The Parties agree to modify, by this Agreement, Section 1.2 of the Terms and Conditions Applicable to 2016 Restricted Performance Stock Rights (“2016 RPSR Terms”) so that Mr. Vice will receive payment of the prorated RPSRs (and related Dividend Equivalents) in 2019 on or before March 15, 2019.  If Mr. Vice breaches the 2016 RPSR Terms or this Agreement, he agrees to deliver to the Company immediately upon request an amount in cash equal to the aggregate Fair Market Value, determined as of the payment date of all RPSRs already settled, including any Dividend Equivalents.  Except as modified hereby, the 2016 RPSR Terms shall continue to apply in accordance with their terms.

		
	3.5.4
	 Mr. Vice will receive his Early Retirement treatment of his 2017 Restricted Performance Stock Rights (RPSR) grant, provided (i) Mr. Vice’s employment continues through July 30, 2017; and (ii) the Company determines that Mr. Vice has complied and continues to comply with all of his obligations under 2017 RPSR Terms and this Agreement (including without limitation the provisions of Sections 6 and 3.6).  If Mr. Vice breaches the 2017 RPSR Terms or this Agreement, he agrees to deliver to the Company immediately upon request an amount in cash equal to the 

Page 3 of 15

 

aggregate Fair Market Value, determined as of the payment date of all RPSRs already settled, including any Dividend Equivalents.  Except as modified hereby, the 2017 RPSR Terms shall continue to apply in accordance with their terms.

		
	3.5.5
	Mr. Vice and the Company agree that the holding periods with respect to any stock currently subject to a hold pursuant to (i) Section 9 of the (A) 2011 and 2012 Terms and Conditions Applicable To Restricted Stock Rights, (B) 2011 and 2012 Terms and Conditions Applicable To Restricted Performance Stock Rights, and/or (C) Terms and Conditions Applicable to 2011 Stock Options, and (ii) Section 11 of the (A) Terms and Conditions Applicable To 2013 Restricted Stock Rights, (B) Terms and Conditions Applicable To 2013 Restricted Performance Stock Rights, and/or (C) the terms and conditions applicable to equity grants by which payments are made to Mr. Vice in 2017, 2018, 2019, and 2020, will expire as scheduled in the applicable terms and conditions only to the extent that the Company provides a certification (not to be unreasonably withheld) to Fidelity (or any successor vendor) that, to the best of the Company’s knowledge, Mr. Vice has complied with this Agreement and the applicable terms and conditions of the grants through the expiration date of  the holding period. 

		
	3.6
	The payments and benefits described in this Section 3 are contingent upon: (i) Mr. Vice’s execution of this Agreement, (ii) his execution of the attached Exhibit A (General Release Agreement) on his Retirement Date, as defined in Section 4 (without revocation), and (iii) his full compliance with the terms and conditions of this Agreement (including without limitation Section 6). The terms and conditions of the General Release Agreement are incorporated into this Agreement as if fully set forth herein.

		
	4.
	RETIREMENT: Mr. Vice will voluntarily retire as an employee of the Company, with a last day of work of August 18, 2017.  This shall be his Retirement Date.

		
	5.
	COMPLETE RELEASE:  Mr. Vice RELEASES the Company from liability for any claims, demands or causes of action, known or unknown, against the Company and the Released Parties (except as described in Section 5.5).  This Release applies not only to the “Company” itself, but also to all Northrop Grumman parents, subsidiaries, affiliates, predecessors, and successors, and (i) its and their employee benefit plans, and the trustees, fiduciaries and administrators of any such plans, and (ii) its and their past or present officers, directors, agents and employees (“Released Parties”). For purposes of this Release, the term “Mr. Vice” includes not only Mr. Vice himself, but also his heirs, spouses or former spouses, domestic partners or former domestic partners, executors and agents. Except as described in Section 5.5, this Release extinguishes all of Mr. Vice’s claims, demands or causes of action, known or unknown, against the Company and the Released Parties, on account of or arising out of anything that has happened, developed, or occurred on or before the date Mr. Vice signs this Agreement.

		
	5.1
	This Release includes, but is not limited to, claims relating to Mr. Vice’s employment by or retirement from the Company and any Released Party, any 

Page 4 of 15

 

rights of continued employment, reinstatement or reemployment by the Company and any Released Party, claims relating to or arising under Company or Released Party dispute resolution procedures, claims for any costs or attorneys’ fees incurred by Mr. Vice, and claims for severance benefits.
		
	5.2
	This Release  includes, but is not limited to, claims arising under, the Family and Medical Leave Act, the Worker Adjustment and Retraining Notification Act, the Employee Retirement Income Security Act, the anti-retaliation provision of the False Claims Act, Executive Order No. 11246, the Civil Rights Act of 1991, and 42 U.S.C. § 1981.  It also includes, but is not limited to, claims under Title VII of the Civil Rights Act of 1964; the Americans with Disabilities Act; any laws prohibiting discrimination in employment based on veteran status or any other protected basis; any applicable state human rights statutes; and any other federal, state or local laws, ordinances, regulations and common law, to the fullest extent permitted by law.

		
	5.3
	This Release also includes, but is not limited to, any rights, claims, causes of action, demands, damages or costs arising under or in relation to the personnel policies or employee handbooks of the Company and any Released Party, or any oral or written representations or statements made by the Company and any Released Party, past and present, or any claim for wrongful discharge, breach of contract (including any employment agreement), breach of the implied covenant of good faith and fair dealing, intentional or negligent infliction of emotional distress, intentional or negligent misrepresentation, or defamation.

		
	5.4
	Mr. Vice agrees that his Release includes claims which he did not know of or suspect to exist at the time he signed this Agreement, and that this Release extinguishes all known and unknown claims.

		
	5.5
	However, this Release does not include any rights Mr. Vice may have: (1) to enforce this Agreement and his rights to receive the benefits described in Section 3 of this Agreement; (2) to any indemnification rights Mr. Vice may have for expenses or losses incurred in the course and scope of his employment; (3) to workers’ compensation benefits; (4) to earned, banked or accrued but unused PTO; (5) to vested benefits under any qualified or non-qualified pension or savings plan; (6) to continued benefits in accordance with COBRA; (7) to government-provided unemployment insurance; (8) to file a claim or charge with any government agency and to receive any whistleblower award (although Mr. Vice is releasing any rights he may have to recover damages or other individual relief in connection with the filing of such a claim or charge); (9) to claims that cannot lawfully be released; (10) to any rights Mr. Vice may have for retiree medical coverage; (11) to any rights Mr. Vice may have with respect to his existing equity grants under the Company’s Long Term Incentive Stock Plan, as modified by this Agreement; or (12) to claims that arise from acts or omissions that occur after the date Mr. Vice signs this Agreement.

		
	6.
	POST-EMPLOYMENT CONDUCT:

Page 5 of 15

 

		
	6.1
	Mr. Vice shall not, directly or indirectly, through the assistance of a third party, or counsel, on his own behalf or on behalf of another person or entity, by any means issue or communicate any statement that is critical or disparaging or may reasonably be interpreted as critical or disparaging of any Released Party or its/their employees, products or services; provided that neither the foregoing nor any other provision of this Agreement affects Mr. Vice’s  right to provide truthful information to government authorities or his obligations to cooperate with any government investigation or to respond truthfully to any lawful government inquiry or to give truthful testimony in court.

		
	6.2
	During the term of his employment through his Retirement Date, Mr. Vice was exposed to and involved in the development of various of Northrop Grumman’s most valuable, unique and material trade secrets and confidential and proprietary information, not only within the Aerospace Systems sector and the former Technical Services sector, but across Northrop Grumman.  Mr. Vice occupies one of the most senior executive positions in the Company and has far-reaching access to and is widely exposed to Northrop Grumman’s highly confidential, valuable and sensitive information; customer, partner, supplier and employee relationships; intellectual property; privileged and confidential information; short and long term strategies and tactical plans; investments and technologies; human capital; and financial information and plans.  Northrop Grumman has a very significant, legitimate business interest in restricting Mr. Vice’s ability to compete or solicit in the specific manner set forth below.

		
	6.3
	Mr. Vice agrees that for a period of twenty-four (24) months from his Retirement Date, he will not, directly or indirectly, oversee, control, support or in any way participate in (i) the design, operation, research, manufacture, marketing, sale, or distribution of Competitive Products and Services or (ii) the development of requirements or military, financial or political support for Competitive Products and Services.  For purposes of this Agreement, “Competitive Products and Services” shall mean products or services that compete for resources with or are an alternative or potential alternative to, the products sold or services provided by Northrop Grumman, including without limitation products and services in the areas of manned and unmanned aircraft, space, C4ISR, cyber, sensors, electronics, through-life support and technology services.

		
	6.4
	Mr. Vice agrees that for a period of twenty-four (24) months from the Retirement Date, he will not engage in a Competitive Business, including as director, member, partner, principal, proprietor, agent, consultant, officer, or employee.  For the purpose of this Agreement, “Competitive Business” shall mean one that engages, directly and indirectly, in a business engaged in by the Company or any of its parents, subsidiaries, affiliates or joint ventures, as of the Retirement Date, including a business that provides products and/or services as a prime or subcontractor to government customers in the United States of America, the United Kingdom, NATO, the European Union, Australia, South Korea, Japan, India, the United Arab Emirates, Qatar, Kuwait, Iraq, Afghanistan, and/or the Kingdom of Saudi Arabia, in the areas of manned and unmanned aircraft, space, C4ISR, strike systems, cyber, sensors, electronics, through-life support and 

Page 6 of 15

 

technology services.  Provided, however, that the following activities will not alone constitute a breach of this Section 6.4 covenant: (i) ownership for investment purposes of not more than five percent (5%) of the total outstanding equity securities (or other interests) of any entity; (ii) serving as a principal, partner, director, employee, consultant or advisor to a Private Equity Firm, provided that such activities do not involve advising the Private Equity Firm in any way regarding the Company, its parents, subsidiaries or affiliates, or a Competitive Business; or (iii) working in a capacity that does not in any way involve the executive, business, financial, administrative, human resources or operational management; sale or marketing; research; design; product development; manufacturing/production; sale or strategy of Competitive Products or Services.  
		
	6.5
	For a period of twenty-four (24) months from his Retirement Date, Mr. Vice shall not, directly or indirectly, solicit any customer, supplier, teammate or partner of Northrop Grumman with whom Mr. Vice engaged, or about whom Mr. Vice received any confidential, sensitive, or proprietary information, in the course of Mr. Vice’s employment with Northrop Grumman, for purposes of developing, considering or providing products or services in competition with Northrop Grumman.   

		
	6.6
	For a period of twenty-four (24) months from his Retirement Date, Mr. Vice shall not, directly or indirectly, through assistance, information or counsel, on his own behalf or on behalf of another person or entity, solicit or offer to hire, any person who was, within a period of six months prior to the Retirement Date, employed by any Released Party, with whom Mr. Vice worked or about whom Mr. Vice received any information in the course of his employment with Northrop Grumman.

		
	6.7
	Mr. Vice reaffirms his obligation and agrees to fully protect and not disclose any confidential, privileged, proprietary or otherwise protected information of the Company or any Released Party, including without limitation, trade secrets, intellectual property, strategies, pricing, business relationships, financial plans, privileged communications and business development plans.  Mr. Vice has not and will not claim ownership of any rights to any Company or Released Party intellectual property.  Prior to his Retirement Date, Mr. Vice agrees to execute and continue to comply with Corporate Form C-100D, which is incorporated into this Agreement as if fully set forth herein.  

		
	6.8
	The Company enters into this Agreement and provides the compensation and benefits set forth in Section 3 in significant part as consideration for the restrictive covenants set forth in Section 6.  If Mr. Vice violates any of the covenants in Section 6, in addition to any other remedies available to it, including injunctive relief, the Company may require that (i) Mr. Vice forfeit all payments yet to be paid under Section 3;  (ii) any unvested and/or unpaid RSRs and/or RPSRs (and associated Dividend Equivalents) be terminated without payment to Mr. Vice; and (iii) Mr. Vice immediately deliver to the Company an amount in cash equal to the aggregate Fair Market Value, determined as of the vesting and/or payment 

Page 7 of 15

 

date of all RSRs and RPSRs already received as referenced in Section 3, including any Dividend Equivalents, as well as any cash payments referenced in Section 3. 
		
	6.9
	Further, Mr. Vice acknowledges and agrees that a breach of any of the provisions of Section 6 will result in immediate, irreparable and continuing damage to the Company for which there is no adequate remedy at law, and the Company will be entitled to injunctive relief and a decree of specific performance, in addition to other relief as may be proper, including monetary damages and relief provided for in Section 3 above.  Mr. Vice agrees that the applicable post-employment restriction periods shall be extended by any period of time during which it is found that he was in violation of such restrictions.  

		
	6.10
	Mr. Vice agrees that the restrictions set forth in Section 6 are (i) reasonable and necessary in all respects, including duration, territory and scope of activity, in order to protect Northrop Grumman’s non-public trade secrets and proprietary information, (ii) that the parties have agreed to limit Mr. Vice’s right to compete only to the extent necessary to protect Northrop Grumman’s legitimate business interests, and (iii) that he will be able to earn a livelihood without violating the restrictions in Section 6.  It is the intent of the parties that the provisions of Section 6 shall be enforced to the fullest extent permissible under applicable law. However, if any portion of this covenant is deemed overbroad or unenforceable due to challenge by him, Mr. Vice will hereby forego all consideration provided in Section 3, and to the extent such consideration has already been paid, will return all consideration provided him under Section 3 (other than earned and paid base salary).

		
	7.
	FULL DISCLOSURE:  Mr. Vice acknowledges that he is not aware of, or has fully disclosed to the General Counsel of the Company (or her delegate), any matters for which he was responsible or which came to his attention as an employee, which might reasonably be expected to give rise to a claim or cause of action against, or investigation or audit of the Company and/or any Released Party, including without limitation any knowledge of potential fraud, overpayments, false statements, improper or erroneous financial reporting, violations of law or regulation, employee misconduct, or violations of the Company’s Standards of Business Conduct or other policies or procedures.  Mr. Vice has reported to the Company all work-related injuries, if any, that he has suffered or sustained during his employment with the Company and any Released Party.  Mr. Vice has properly reported all hours he worked.

		
	8.
	NO UNRESOLVED CLAIMS:  This Agreement has been entered into with the understanding that there are no unresolved claims of any nature that Mr. Vice has against the Company.  Mr. Vice acknowledges and agrees that except as specified in Section 3, all compensation, benefits, and other obligations due Mr. Vice by the Company, whether by contract or by law, have been paid or otherwise satisfied in full.

		
	9.
	RETURN OF COMPANY PROPERTY:  Mr. Vice agrees to return any and all property and equipment of the Company and any Released Party that he may have in his possession, including without limitation all confidential, privileged, proprietary or 

Page 8 of 15

 

otherwise protected electronic and paper documents, no later than the Retirement Date, except to the extent this Agreement explicitly provides to the contrary.
		
	10.
	WITHHOLDING OF TAXES:  The Company shall be entitled to withhold from any amounts payable or pursuant to this Agreement all taxes as legally shall be required (including, without limitation, United States federal taxes, and any other state, city or local taxes). 

		
	11.
	ADVICE OF COUNSEL:  The Company encourages Mr. Vice to seek and receive advice about this Agreement from an attorney of his choosing. 

		
	12.
	DENIAL OF WRONGDOING:  Neither party, by signing this Agreement, admits any wrongdoing or liability to the other.  Both the Company and Mr. Vice deny any such wrongdoing or liability.

		
	13.
	COOPERATION:  Mr. Vice agrees that, for at least sixty (60) months following the Retirement Date, he will reasonably cooperate with Company and any Released Party regarding requests for assistance by providing support in connection with claims, litigation and investigations, including without limitation serving as a witness and/or providing information about matters connected with Mr. Vice’s prior employment with the Company or any Released Party; provided, however, that any such cooperation in excess of 40 hours per year shall be subject to mutually agreeable reasonable compensation.  The Company or the Released Party requesting assistance shall reimburse Mr. Vice for any travel costs he incurs in connection with his cooperation, in accordance with its travel cost reimbursement policy for active appointed officers.

		
	14.
	ARBITRATION, JURISDICTION, AND VENUE:   

		
	14.1
	Except as otherwise provided in this Section 14, any cause of action or claim arising out of or related to this Agreement (including any claim that either party has violated this Agreement or regarding its enforceability) will be determined through final and binding arbitration, rather than through litigation in court, in accordance with CTM H200 USHR 2-32.  

		
	14.2
	The Company and Mr. Vice agree that any arbitration hearing and related proceedings shall be convened and conducted in Falls Church, VA.

		
	14.3
	The Company and Mr. Vice agree that the prevailing party in the arbitration shall be entitled to receive from the losing party reasonably incurred attorneys’ fees and costs, except in any challenge by Mr. Vice to the validity of the General Release Agreement (attached hereto as Exhibit A) under the Age Discrimination in Employment Act and/or Older Workers Benefit Protection Act.

		
	14.4
	If the Company or Mr. Vice believes they require immediate relief to enforce or challenge this Agreement, before arbitration is commenced or concluded, either party may seek injunctive or other provisional equitable relief from state or federal court in the Commonwealth of Virginia.  Either party may also proceed in state or federal court in the Commonwealth of Virginia to compel arbitration or to enforce an arbitration award under this Agreement.  All court actions or 

Page 9 of 15

 

proceedings arising under this Agreement shall be heard in state or federal court in the Commonwealth of Virginia.  The Company and Mr. Vice hereby waive any right to object to such actions on grounds of venue, jurisdiction or convenience.  The Company and Mr. Vice stipulate that the state and federal courts located in or for Fairfax County, Virginia shall have in personam jurisdiction and venue for the purpose of litigating any such dispute, controversy, claim, or complaint arising out of or related to this Agreement.  Mr. Vice hereby agrees that service of process sufficient for personal jurisdiction in any action or proceeding involving him may be made by registered or certified mail, return receipt requested, to the address on file with the Company, or by electronic service of process through the Internet when authorized by a court of competent jurisdiction.
		
	15.
	SOLE AND ENTIRE AGREEMENT; TRADE SECRETS:  This Agreement expresses the entire understanding between the Company and Mr. Vice on the matters it covers.  It supersedes all prior discussions, agreements, understandings and negotiations between the parties on these matters; except that any writing between the Company and Mr. Vice relating to protection or non-disclosure of Company trade secrets or other information, intellectual property and/or certifications made by Mr. Vice shall remain in effect, and the Terms and Conditions Applicable to 2014, 2015, 2016, and 2017 Restricted Performance Stock Rights and Restricted Stock Rights shall all remain in full force and effect in accordance with their terms except as modified hereby.  Mr. Vice shall not be held liable under this Agreement for properly making any confidential disclosure of a Company trade secret or other intellectual property to a government official for purposes of reporting or in connection with the investigation of a suspected violation of law or regulation.  

		
	16.
	MODIFICATION:  Once this Agreement takes effect, it may not be cancelled or changed, unless done so in a document signed by both Mr. Vice and an authorized Company representative.

		
	17.
	GOVERNING LAW:  This Agreement shall be governed by and interpreted and enforced in accordance with the laws of the Commonwealth of Virginia, without regard to rules regarding conflicts of law.

		
	18.
	ADVICE OF COUNSEL; VOLUNTARY AGREEMENT: 

MR. VICE ACKNOWLEDGES THAT HE HAS HAD AN OPPORTUNITY TO ASK QUESTIONS, CONFER WITH COUNSEL, AND CONSIDER ALL OF THE PROVISIONS OF THIS AGREEMENT BEFORE SIGNING IT.  HE FURTHER AGREES THAT HE HAS READ THIS AGREEMENT CAREFULLY, THAT HE UNDERSTANDS IT, AND THAT HE IS VOLUNTARILY ENTERING INTO IT.  MR. VICE UNDERSTANDS AND ACKNOWLEDGES THAT THIS AGREEMENT CONTAINS HIS RELEASE OF ALL KNOWN AND UNKNOWN CLAIMS.  THE PARTIES ACKNOWLEDGE THAT THIS AGREEMENT HAS BEEN NEGOTIATED AND EXECUTED WITHIN THE COMMONWEALTH OF VIRGINIA.

Page 10 of 15

 

Date:      February 27, 2017        By:  /s/ Thomas E. Vice    
         THOMAS E. VICE
In:   Falls Church, Fairfax County, Virginia    

 
Date:      February 27, 2017        By:  /s/ Denise M. Peppard                       
Northrop Grumman Systems Corporation 
In:  Falls Church, Fairfax County, Virginia
 
Title: CHRO

Page 11 of 15

 

EXHIBIT A

GENERAL RELEASE AGREEMENT

This is an agreement (hereinafter “Release” or “Release Agreement”) between Thomas E. Vice(“Mr. Vice”) and Northrop Grumman Systems Corporation (“Northrop Grumman” or “the Company”) regarding Mr. Vice’s employment with the Company and his acceptance of certain benefits in exchange for valuable consideration; Mr. Vice’s retirement from the Company; and Mr. Vice’s agreement to the terms contained in this Release Agreement and the previously executed Transition and Retirement Agreement, all the terms of which are incorporated by reference as if fully set forth herein.  The purpose of this Release Agreement is to resolve fully and finally any and all matters concerning Mr. Vice’s employment with the Company and his retirement from the Company.

1.In exchange for this Release Agreement, the Company will provide Mr. Vice with certain consideration as outlined in the Transition and Retirement Agreement dated February 27, 2017 (“Transition and Retirement Agreement”).  
2.This Release Agreement satisfies the requirement that Mr. Vice executes a General Release Agreement as set forth in Section 3.6 of the Transition and Retirement Agreement.
3.In exchange for the consideration exchanged between Mr. Vice and the Company as set forth in the Transition and Retirement Agreement and this Release Agreement, Mr. Vice RELEASES the Company from liability for any claims, demands or causes of action, known or unknown, against the Company and the Released Parties, on account of or arising out of anything that has happened, developed, or occurred on or before the date Mr. Vice signs this Release Agreement (except as described in Section 3.5).  This Release applies not only to the “Company” itself, but also to all Northrop Grumman parents, subsidiaries, affiliates, related companies, predecessors, successors, its or their employee benefit plans, trustees, fiduciaries and administrators, and any and all of its and their respective past or present officers, directors, agents and employees (“Released Parties”).  For purposes of this Release, the term “Mr. Vice” includes not only Mr. Vice himself, but also his heirs, spouses or former spouses, domestic partners or former domestic partners, executors and agents. Except as described in Section 3.5, this Release extinguishes all of Mr. Vice’s claims, demands or causes of action, known or unknown, against the Company and the Released Parties, on account of or arising out of anything that has happened, developed, or occurred on or before the date Mr. Vice signs this Release Agreement.
		
	3.1
	This Release includes, but is not limited to, claims relating to Mr. Vice’s employment by or retirement from the Company and any Released Party, any rights of continued employment, reinstatement or reemployment by the Company and any Released Party, claims relating to or arising under Company or Released Party dispute resolution procedures, claims for any costs or attorneys’ fees incurred by Mr. Vice, and claims for severance benefits.

		
	3.2
	This Release includes, but is not limited to, claims arising under the Age Discrimination in Employment Act, the Family and Medical Leave Act, the Employee Retirement Income Security Act, the anti-retaliation provision of the 

Page 12 of 15

 

False Claims Act, Executive Order No. 11246, the Civil Rights Act of 1991, and 42 U.S.C. § 1981.  It also includes, but is not limited to, claims under Title VII of the Civil Rights Act of 1964; the Americans with Disabilities Act; any laws prohibiting discrimination in employment based on veteran status or any other protected basis; any state human rights statutes that may be applicable; and any other federal, state or local laws, ordinances, regulations and common law, to the fullest extent permitted by law.
		
	3.3
	This Release also includes, but is not limited to, any rights, claims, causes of action, demands, damages or costs arising under or in relation to the personnel policies or employee handbooks of the Company and any Released Party, or any oral or written representations or statements made by the Company and any Released Party, past and present, or any claim for wrongful discharge, breach of contract (including any employment agreement), breach of the implied covenant of good faith and fair dealing, intentional or negligent infliction of emotional distress, intentional or negligent misrepresentation, or defamation.

		
	3.4
	Mr. Vice agrees that his Release includes claims which he did not know of or suspect to exist at the time he signed this Agreement, and that this Release extinguishes all known and unknown claims.

		
	3.5
	However, this Release does not include any rights Mr. Vice may have:  (1) to enforce this Release Agreement or the Transition and Retirement Agreement and his rights to receive the compensation and benefits described in  this Release Agreement or the Transition and Retirement Agreement; (2) to any indemnification rights Mr. Vice may have for expenses or losses incurred in the course and scope of his employment; (3) to test the knowing and voluntary nature of this Release Agreement under The Older Workers Benefit Protection Act; (4) to workers’ compensation benefits; (5) to earned, banked or accrued but unused vacation pay; (6) to vested benefits under any qualified or non-qualified pension or savings plan; (7) to continued benefits in accordance with COBRA; (8) to government-provided unemployment insurance; (9) to file a claim or charge with any government administrative agency and to receive a whistleblower award (although Mr. Vice is releasing any rights he may have to recover damages or other individual relief in connection with the filing of such a claim or charge); (10) to claims that cannot lawfully be released; (11) to any rights Mr. Vice may have for retiree medical coverage; (12) to any rights Mr. Vice may have with respect to his existing equity grants under the Company’s Long Term Incentive Stock Plan, as modified by the Transition and Retirement Agreement; or (13) to claims that arise from acts or omissions that occur after the date Mr. Vice signs this Release Agreement.

4.Mr. Vice acknowledges that, as of the Retirement Date (as defined in the Transition and Retirement Agreement), he is not aware of, or has fully disclosed to the General Counsel of the Company (or her delegate), any matters for which he was responsible or which came to his attention as an employee, which might reasonably be expected to give rise to a claim or cause of action against, or investigation or audit of the Company and/or any Released Party, including without limitation any knowledge of potential fraud, overpayments, false statements, 

Page 13 of 15

 

improper or erroneous financial reporting, violations of law or regulation, employee misconduct, or violations of the Company’s Standards of Business Conduct or other policies or procedures.  Mr. Vice has reported to the Company all work-related injuries, if any, that he has suffered or sustained during his employment with the Company and any Released Party.  Mr. Vice has properly reported all hours he worked.  
5.This Release Agreement has been entered into with the understanding that there are no unresolved claims of any nature which Mr. Vice has against the Company.  Mr. Vice acknowledges and agrees that except as specified in Section 3 of the Transition and Retirement Agreement, all compensation, benefits, and other obligations due Mr. Vice by the Company, whether by contract or by law, have been paid or otherwise satisfied in full.
6.The Company encourages Mr. Vice to seek and receive advice about this Release Agreement from an attorney of his choosing, and Mr. Vice has had the opportunity to do so.  Mr. Vice has twenty-one (21) calendar days to consider this Release Agreement, which he agrees is a reasonable period of time.
7.Mr. Vice may revoke this Release Agreement within seven (7) calendar days of his signature date.  To do so, Mr. Vice must deliver a written revocation notice to Ms. Denise Peppard, Chief Human Resources Officer, at 2980 Fairview Park Drive, Falls Church, Virginia 22042.  Mr. Vice must deliver the notice to Ms. Peppard no later than 4:30 p.m. ET on the seventh calendar day after Mr. Vice’s signature date.  If Mr. Vice revokes this Release Agreement, it shall not be effective or enforceable and Mr. Vice will not receive the compensation and benefits described in this Release Agreement or the Transition and Retirement Agreement.
MR. VICE ACKNOWLEDGES THAT HE HAS HAD AN OPPORTUNITY TO ASK QUESTIONS, CONFER WITH COUNSEL, AND CONSIDER ALL OF THE PROVISIONS OF THIS AGREEMENT BEFORE SIGNING IT.  HE FURTHER AGREES THAT HE HAS READ THIS AGREEMENT CAREFULLY, THAT HE UNDERSTANDS IT, AND THAT HE IS VOLUNTARILY ENTERING INTO IT.  MR. VICE UNDERSTANDS AND ACKNOWLEDGES THAT THIS AGREEMENT CONTAINS HIS RELEASE OF ALL KNOWN AND UNKNOWN CLAIMS.

Page 14 of 15

 

Date:      February 27, 2017        By: /s/ Thomas E. Vice    
Thomas E. Vice

 
Date:      February 27, 2017        By: /s/ Denise M. Peppard    
Northrop Grumman Systems Corporation 
 
Title: CHRO

Page 15 of 15

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