Document:

Employment Agreement

 Exhibit 10(z) 
  
 EMPLOYMENT AGREEMENT 
  

	1.	PARTIES: The Parties to this Employment Agreement (hereafter referred to as the “Agreement”) are DONALD C. WINTER (hereafter referred to as “Executive”)
and NORTHROP GRUMMAN CORPORATION (hereafter referred to as “Northrop Grumman” or “the Company”). 

  

	2.	EMPLOYMENT: Northrop Grumman hereby agrees to employ Executive and Executive hereby accepts such employment by Northrop Grumman upon the terms and conditions herein set
forth. 

  

	3.	 TERM: The Company has entered into an agreement with TRW Inc., an Ohio corporation (“TRW”) to effect a transaction (the “Merger”)
pursuant to which TRW will become a wholly owned subsidiary of the Company. The closing of the Merger (the “Closing”) is expected to occur on or about December 11, 2002. The term of this Agreement shall commence as of the date of the
Closing (the “Effective Date”) if such Closing occurs on or before December 31, 2002 and shall end four years thereafter, unless sooner terminated pursuant to Section 8 or 9 hereof. This Agreement is further subject to approval by the
Compensation and Management Development Committee of the Company’s Board of Directors. This Agreement shall be of no force or effect if either (a) the Closing does not occur on or before December 31, 2002, or (b) it is not approved by the

  

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Compensation and Management Development Committee of the Company’s Board of Directors by December 31, 2002. 

  

	4.	POSITION AND DUTIES: During the period of Executive’s employment by Company during the term hereof, Executive shall (a) serve as the Company’s Corporate Vice
President and President, Missions Systems Sector, (b) shall be principally responsible for the Company’s Missions Systems Sector, and (c) shall report to a member of the Company’s Office of the Chairman, such member to be determined by the
Company’s Chief Executive Officer from time to time. Notwithstanding the preceding sentence, the Company may change Executive’s title and/or responsibilities from time to time; provided that the Company may not (a) diminish
Executive’s title, (b) diminish Executive’s authority (when viewed in the aggregate), or (c) cause Executive to report to anyone other than a member of the Company’s Office of the Chairman. In his capacity as Corporate Vice President
and President, Mission Systems Sector, Executive will serve on the Company’s Corporate Policy Council. 

  
 Executive shall, during the course of his employment by the Company during the term hereof: 
  

	 	(a)	 attempt in good faith to do and perform all such acts and duties and furnish such services, all as commensurate with his position, as the Company shall reasonably
request, reasonably cooperate with the 

  

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Company, and attempt in good faith to do and perform all acts in the ordinary course of the Company’s business reasonably necessary and conducive to the
performance of his duties hereunder; and 

  

	 	(b)	devote his full time, energy and skill to the business of the Company and to the promotion of the Company’s best interests, except for vacations and absences made necessary
because of illness or other traditionally approved leave purposes; provided, that the foregoing shall not prevent Executive from managing his and his family’s personal investments, being involved in charitable, civic and professional activities
(including serving on the boards of directors of not-for-profit organizations) and, with the consent of the Chief Executive Officer, serving on the boards of directors of for-profit entities so long as such activities do not materially interfere
with Executive’s performance of his duties hereunder. 

  

	5.	 TRW EMPLOYMENT CONTINUATION AGREEMENT: Executive currently has an Employment Continuation Agreement with TRW (the “ECA”). Executive hereby waives
and relinquishes any and all rights and benefits he may have under his ECA, and agrees not to make any claim, now or in the future, for benefits under the ECA. Executive acknowledges that TRW is a third-party beneficiary of this provision. Executive
and the Company hereby agree to terminate the ECA in its entirety as of the Effective Date. Executive further acknowledges and agrees that he has no right to retention compensation, or 

  

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severance compensation or benefits under any other plan, program, policy or arrangement of TRW, the Company, or either of their respective affiliates with
respect to his continuing employment or any termination of employment except as may be expressly provided under this Agreement, Company plans or programs, or at law. Without limiting the generality of the foregoing, Executive agrees that he has no
right to any compensation, benefits or other payment under or with respect to any retention and/or severance agreement that he or she may have previously entered into. 

  
 TRW and Putnam Fiduciary Trust Company entered into a Rabbi Trust Agreement on or about December 5, 2002. Executive
acknowledges and agrees that he is not entitled to any payment or benefit from the trust (the “Trust”) formed pursuant to such agreement and the Payment Schedule pursuant to such agreement is hereby so amended. In the event that Executive
receives any payment from the Trust, such payment shall offset on a dollar for dollar basis any obligation of the Company to Executive under this Agreement. Executive further acknowledges and agrees that the payment required pursuant to Section 6(b)
below may be made from the Trust (in lieu of payment from the Company or TRW) and, in the event such payment is made in full from the Trust, the Company and TRW shall have no further obligation to Executive pursuant to Section 6(b). 
  

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	6.	COMPENSATION AND BENEFITS:  

  

	 	(a)	Base Salary: Executive’s base salary for the course of his employment by the Company during the term hereof shall be no less than $500,000 per year (pro rated for any
period of service less than a full year). Executive’s base salary shall not be increased for 2003, but such salary shall be subject to increases (but not decreases) in accordance with the Company’s normal salary review process for 2004 and
any subsequent year during the course of his employment by the Company during the term hereof. 

  

	 	(b)	Consideration in Lieu of ECA Payment: The Company (unless such amount is paid by TRW or by the Trust) shall pay Executive a special bonus of $4,400,000 within thirty days
after the Closing in lieu of any and all rights that Executive may have under the ECA. Such compensation shall not be taken into consideration (for benefit determination purposes or otherwise) under any pension, supplemental pension, savings or
other benefit plan or program of the Company or TRW notwithstanding any provision of any such plan or program to the contrary. 

  

	 	(c)	 TRW Incentive Pay: Executive’s 2002 bonus under the TRW Operational Incentive Plan (the “OIP”) shall equal $572,400, and such amount shall be
pension eligible under the TRW pension plans. Any portion of such bonus 

  

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not paid by TRW shall be paid by the Company no later than January 15, 2003. Executive shall not have any right to receive any new award or accrue any
additional benefit under the OIP, the TRW Strategic Incentive Program (the “SIP”) or any other TRW incentive program. Any compensation related to the OIP, the SIP or any other TRW incentive program shall not be taken into consideration
(for benefit determination purposes or otherwise) under any Company pension, supplemental pension, savings or other benefit plan or program notwithstanding any provision of any such plan or program to the contrary; provided that OIP compensation
shall be taken into consideration for purposes of the TRW benefit plans and programs in which Executive participates in accordance with the usual rules of such plans and programs. 

  

	 	(d)	ICP Bonus: Commencing on January 1, 2003 and for the balance of the period of Executive’s employment by the Company during the term hereof as an elected officer,
Executive shall participate in the Company’s Incentive Compensation Plan (“ICP”), a bonus plan for elected Company officers. Executive’s target bonus under such plan shall be at least 50% of his base salary for the relevant
period, provided however, that Executive’s actual bonus will be determined in accordance with the terms of the ICP and may be more or less than 50% of his base salary. 

  

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	 	(e)	 Benefits: Executive is currently covered by the benefit plans of TRW. Executive shall continue to be covered by the TRW pension and welfare benefit plans
until January 1, 2003 (or as soon as administratively practical thereafter that he can be moved into the Company benefit plans). Effective January 1, 2003 or as soon as administratively practical thereafter, Executive shall no longer accrue benefits
under the TRW pension plans nor participate in the TRW welfare plans, but rather shall commence participation in the Northrop Grumman welfare plans and commence benefit accruals under the Northrop Grumman pension plans in which Northrop Grumman
elected officers who are direct reports to a member of the Company’s Office of the Chairman participate. These plans include, but are not limited to, the Northrop Grumman Retirement Plan, the Northrop Grumman Savings and Investment Plan, the
Northrop Grumman Deferred Compensation Plan, and three non-qualified supplemental executive retirement plans known as “ERISA 1”, “ERISA 2” and the “CPC SERP.” As of January 1, 2003, Executive shall be credited with
years of vesting service (but not benefit service) under the Northrop Grumman Retirement Plan, the Northrop Grumman Savings and Investment Plan, and the three Company non-qualified supplemental executive retirement plans for his years of service
with TRW. Notwithstanding the foregoing, compensation earned on or after January 1, 2003 shall be recognized under the TRW nonqualified Supplementary Retirement Income Plan (“SRIP”) for purposes of determining Executive’s 

  

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benefits thereunder. Executive shall retain all rights under the TRW SRIP (other than the special enhancement provided by the ECA), Benefit Equalization
Plan, and Deferred Compensation Plan. 

  

	 	(f)	Retiree Medical Benefit: Executive shall be eligible to participate in the Elected Officer Retiree Medical Program on the same terms and conditions as other elected officers
of similar status. 

  

	 	(g)	Stock and Stock Options: At the next meeting of the Compensation and Management Development Committee of the Company’s Board of Directors (“Initial Grant
Date”), Executive shall be granted (a) a non-qualified stock option covering 15,000 shares of Company common stock with a per share exercise price equal to the Fair Market Value (as defined in the Guide) of a share of Company common stock on
the date of grant, and (b) 8,000 restricted performance stock rights (“RPSRs”). When elected officers of the Company generally are granted equity-based incentives in or around August 2003, if Executive is then employed by the Company,
Executive shall be granted (a) a non-qualified stock option covering no less than an additional 15,000 shares of Company common stock with a per share exercise price equal to the Fair Market Value (as defined in the Guide) of a share of Company
common stock on the date of grant, and (b) no less than an additional 8,000 RPSRs. 

  

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 The options and RPSRs granted to Executive shall be awarded under and shall be subject to the terms and
conditions of the Company’s 2001 Long Term Incentive Stock Plan, as amended from time to time (the “LTISP”), the Guide to Administration for the LTISP, as amended from time to time (the “Guide”), and the grant certificates
provided to Executive. 
  
 The foregoing share and RPSR numbers
are subject to adjustment for stock splits and similar events in accordance with the adjustment provisions of the LTISP. 
  
 Each option granted to Executive on the Initial Grant Date shall have a maximum term of ten years and shall vest in four substantially equal installments,
with an installment becoming vested, subject to Executive’s continued employment through the respective vesting date, on each of the first through fourth anniversaries of the respective date of grant of the option. 
  
 The RPSRs granted as of the Initial Grant Date shall have a January 1, 2003
through December 31, 2005 performance period. Performance targets for the grant shall be established by the Company. 
  

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 The options and RPSRs granted in or around August 2003 shall be on terms otherwise similar to the terms
applicable to other Company elected officer grants made at that time 
  
 Notwithstanding any contrary death, Disability (as defined in the Guide), or involuntary separation vesting or RPSR payment provision that may customarily apply with respect to awards under the LTISP, the following special vesting and RPSR
payment provisions shall apply with respect to Executive’s option and RPSR grants made as of the Initial Grant Date (but not the contemplated August 2003 awards or any other subsequent award) in the event that Executive’s employment
terminates in the circumstances described: in the event that Executive’s employment with the Company terminates due to Executive’s death or Disability (as defined in the Guide) or in the event that Executive’s employment is terminated
by the Company other than for Cause (as defined in Section 8 or by Executive for Good Reason (as defined in Section 9), then (a) the portion of Executive’s options granted on the Effective Date that are then outstanding and otherwise unvested
shall thereupon become fully vested (but such options shall otherwise be subject to any limited post-termination exercise period that may apply), and (b) Executive’s RPSRs granted on the Effective Date shall be paid in accordance with their
usual terms as though Executive’s employment by the Company had not terminated (without pro ration) except that the 30% minimum payment provisions 

  

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applicable to certain RPSRs shall not apply (accordingly, no payment of such RPSRs shall be made unless and until payments with respect to such RPSRs are
made to participants who continue to be employed by the Company). 
  

	 	(h)	Gross-Up: In the event that any compensation or benefits paid to Executive pursuant to this Agreement or by TRW or from the Trust are subject to Excise Tax (as defined in
Exhibit B hereto) as a result of the Merger, then the Gross-Up Provisions of Exhibit B shall apply. This provision shall survive the termination of this Agreement. 

  

	 	(i)	New CIC Agreement: Executive shall be provided with a March 2000 Special Agreement with the Company providing the same protection for Executive in the event of a change in
control (as defined in such agreement) of the Company as is provided to other elected officers of the Company. Consistent with the terms of such Special Agreement, the Merger does not constitute a change in control pursuant to such Special
Agreement. 

  

	7.	 PERQUISITES: For the course of his employment by the Company during the term hereof, Executive shall be eligible for the perquisites provided to Company
officers who are direct reports to a member of the Company’s Office of the 

  

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Chairman. The perquisites currently provided are listed on Appendix A of this Agreement. 

  

	8.	 TERMINATION OF EMPLOYMENT BY THE COMPANY: The Company shall have the right to terminate Executive’s employment at any time, with or without cause, upon
giving at least 14 days advance written notice to Executive of the date when such termination shall become effective. If the Company terminates Executive’s employment without “Cause” (as that term is defined below), then Executive
shall be entitled to participate in the Company’s Officer Severance Plan and the Company shall have no further obligation under this Agreement, except for rights under Section 6(b), tax gross-up under Section 6(h), amounts and benefits due
under any plan, arrangement or grant (including as provided under Section 6(g)) and rights of indemnification and directors and officers liability insurance under Sections 13 and 14 (the “Protected Rights”). If the Company terminates
Executive’s employment for Cause, the Company shall have no further obligation to Executive under this Agreement, except for the Protected Rights other than rights under Section 6(b) For purposes of this Section 8 and Section 9(c),
“Cause” shall mean the occurrence of either or both of the following: (i) Executive’s conviction for committing a felony involving an act of fraud, embezzlement or; or (ii) the willful engaging by Executive in misconduct with regard
to the Company having a significant adverse effect on the Company; provided, however, that no act or failure to act on Executive’s part shall be considered “willful” unless done, or omitted to be done, by Executive not in good 

  

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faith and without reasonable belief that his action or omission was in the best interests of the Company. 

  

	9.	TERMINATION OF EMPLOYMENT BY EXECUTIVE OR BY REASON OF EXECUTIVE’S DEATH OR DISABILITY:  

  

	 	(a)	Death: In the event that Executive dies during the term of this Agreement, Executive’s employment by the Company shall automatically terminate as of the date of death
and the Company shall have no further obligation under this Agreement, except the Protected Rights. 

  

	 	(b)	Disability: If Executive’s employment terminates by reason of his Disability (as defined in the Guide) during the term of this Agreement, the Company shall have no
further obligation under this Agreement, except the Protected Rights. 

  

	 	(c)	By the Executive: Executive may terminate his employment at any time by written notice to the Company with or without Good Reason. 

  
 (i) Good Reason: If Executive terminates employment for Good Reason
(as defined below), then Executive shall be entitled to participate in the Company’s Officer Severance Plan and the Company shall have no further obligation under this Agreement except for the Protected Rights. For purposes of this Section
9(c), “Good Reason” shall mean the occurrence of any of the following: (i) the Company changes Executive’s reporting relationship such that he no longer reports to a member of the Company’s Office of the Chairman, (ii) the
Company materially breaches 

  

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its obligations under Section 4 of this Agreement, (iii) the Company relocates Executive’s principal place of employment without Executive’s prior
written consent, or (iv) the Company purports to terminate Executive’s employment for Cause (as defined in Section 8 above) when Cause does not, in fact, exist. Prior to exercising his right to terminate for “Good Reason”, Executive
shall give the Company at least 30 days written notice of his intent to terminate and of the facts which he believes give rise to “Good Reason”, and the Company shall have an opportunity to cure during this 30 day period. 
  

	 	(d)	Other: The Company shall have no further obligation under this Agreement if Executive terminates employment for any other reason, other than the Protected Rights

  

	10.	 TRADE SECRETS: In the course of performing his duties for TRW and for the Company, Executive will receive, and acknowledges that he has received,
confidential information, including without limitation, information not available to competitors relating to the Company’s existing and contemplated financial plans, products, business plans, operating plans, research and development
information, and customer information, all of which is hereinafter referred to as “Trade Secrets.” Executive agrees that he will not, either during his employment or subsequent to the termination of his employment with the Company,
directly or indirectly (i) disclose, publish or otherwise divulge any Northrop Grumman or TRW Trade Secret to anyone outside the Company or its affiliates,, without prior 

  

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written authorization from the Company to do so, except in the good faith performance of his duties or in order to comply with legal process or governmental
inquiry, or (ii) use such information in any manner which would adversely affect the business or business prospects of the Company, except in or to comply with legal process or governmental inquiry. Executive further agrees that if, at the time of
the termination of his employment with the Company he is in possession of any documents or other written or electronic materials constituting, containing or reflecting Trade Secrets, he will return and surrender all such documents and materials to
the Company upon leaving its employ. The restrictions and protection provided for in the paragraph shall be in addition to any protection afforded to Trade Secrets by law or equity. This Section 10 shall survive any purported termination of this
Agreement notwithstanding anything else contained herein to the contrary. 

  

	11.	 INVENTIONS: Executive agrees that all inventions, discoveries and improvements, and all new ideas for manufacturing and marketing products of the Company,
which Executive has conceived during his employment with TRW or may conceive while employed by the Company, whether during or outside business hours, on the premises of the Company or elsewhere, alone or in collaboration with others, or which he has
acquired or may acquire from others, whether or not the same can be patented or registered under patent, copyright, or trademark laws, shall be and become the sole and exclusive property of the Company. Executive agrees to promptly disclose and
fully acquaint his 

  

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management with any such inventions, discoveries, improvements and ideas which he has conceived, made or acquired, and shall, at the request of the Company,
make a written disclosure of the same and execute such applications, assignments, and other written instruments as may reasonably be required to grant to the Company sole and exclusive right, title and interest thereto and therein and to enable the
Company to obtain and maintain patent, copyright and trademark protection therefore. This Section 11 shall survive any purported termination of this Agreement notwithstanding anything else contained herein to the contrary.

  

	12.	 NON-SOLICITATION AND NON-DISPARAGEMENT: For a period of one year following Executive’s termination of employment, Executive shall not, directly or
indirectly, through aid, assistance or counsel, on his own behalf or on behalf of another person or entity, solicit for hire or offer to hire any person who was, within a period of six months prior to Executive’s termination, employed by the
Company. For a period of one year following Executive’s termination of employment, neither Executive, on the one hand, nor the Company formally, a member of the Board of Directors of the Company or a member of the Company’s Corporate
Policy Council, on the other hand, shall, directly or indirectly, with intent to damage the other, issue or communicate any public statement or statement likely to become public that is critical of or damaging to the other (or in the case of the
Company, also its officers, directors or employees and, except in a competitive situation if Executive is working for a competitor or a 

  

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customer, its products or services). The foregoing shall not be violated by truthful responses to legal process or governmental inquiry. This Section 12
shall survive any purported termination of this Agreement notwithstanding anything else contained herein to the contrary. 

  

	13.	INDEMNIFICATION: The Company hereby covenants and agrees to indemnify Executive and hold him harmless to the fullest extent permitted by law and under the By-laws of the
Company against and in respect to any and all actions, suits, proceedings, claims, demands, judgments, costs, expenses (including attorney’s fees), losses, and damages resulting from Executive’s good faith performance of his duties and
obligations with the Company or with TRW (including service prior to the Effective Date hereof). The Company, within 30 days of presentation of invoices, shall advance to Executive reimbursement of all legal fees and disbursements reasonably
incurred by Executive in connection with any potentially indemnifiable matter; provided, however, that in order to receive such advanced fees and disbursements, Executive must first sign an undertaking reasonably satisfactory to the Company that he
will promptly repay the Company all advanced fees and disbursements in the event it is finally determined that Executive cannot be indemnified for the matter at issue under applicable law or Company By-laws; and provided further, that Executive
shall consult with the Company prior to selecting his counsel and shall make a reasonable effort to select counsel reasonably acceptable to the Company. This provision shall survive the termination of this Agreement. 

  

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	14.	LIABILITY INSURANCE: The Company shall cover Executive under directors and officers liability insurance both during and, while potential liability exists (but no less than
six years), after the term of this Agreement in the same amount and to the same extent, if any, as the Company covers its other officers and directors. 

  

	15.	ASSIGNMENT: This Agreement is personal to Executive and shall not be assigned by him. However, this Agreement may be assigned by the Company only to any entity succeeding to
all or substantially all of the assets or business of the Company, whether by merger, consolidation, acquisition or otherwise (upon which entity the Agreement shall be binding), and only if the Company promptly delivers to Executive a written
assumption of the Agreement and the obligations hereunder by such entity. 

  

	16.	TAX WITHHOLDING: 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). 

  

	17.	SAVINGS CLAUSE: If any provision under this Agreement or its application is adjudicated to be invalid or unenforceable, such invalidity or unenforceability shall not affect
any other provision or application of this Agreement which can be given effect without the invalid or unenforceable provision or application. 

  

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	18.	LEGAL FEES: The Company shall pay Executive’s reasonable legal fees incurred in connection with negotiating this Agreement. 

  

	19.	SEVERANCE PLAN: Any provision of the Company Severance Plan shall not place burdens on Executive with regard to matters of the same nature as those covered by Sections 10, 11
and 12 hereof that are broader than those set forth in such Sections. 

  

	20.	ENTIRE AGREEMENT: This Agreement represents the complete agreement and understanding between Executive and the Company pertaining to the subject matters contained herein, and
supersedes all prior agreements or understandings, written or oral, between the Parties with respect to such subject matters; provided that this Agreement does not supersede any trade secret or invention obligations of Executive under any prior
agreement. Notwithstanding the foregoing, Executive shall (a) retain all rights to receive his accrued benefits under the TRW SRIP, Benefit Equalization Plan, and Deferred Compensation Plan, in accordance with the terms of those plans (other than
any special enhancements to those plans which may be provided for solely under the ECA), (b) be entitled to receive all amounts due to him under the TRW SIP (other than the special enhancement provided for solely under the ECA), and (c) have all of
his TRW stock option and restricted stock grants vest, and, to the extent he has not cashed them out, assumed by the Company. 

  

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	21.	GOVERNING LAW: This Agreement shall be construed in accordance with and governed by the laws of the State of Virginia. 

  

									
				
	 Dated:
	 	 12/12/02
	 	 	 	 /s/ Donald C. Winter

	 	 	 	 	 	 	Donald C. Winter
				
	 Dated:
	 	 12/12/02
	 	 	 	 /s/ Patricia H. Summers

	 	 	 	 	 	 	Northrop Grumman Corporation
					
	  	 	  	 	 	 	 By:
	 	 Vice President

	 	 	 	 	 	 	 Compensation, Benefits and Executive

	 	 	 	 	 	 	 Development

  

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 Exhibit A: Executive
Perquisites as of the Effective Date 
  
 Life and AD&D Insurance 
  
 The noncontributory life
insurance coverage provided to you is three times your annual base salary, with a maximum of $600,000. Accidental death and dismemberment coverage is six times your annual base salary, with a maximum of $1,000,000. 
  
 Long-term Disability 
  
 Benefit is 65% of base salary, with a maximum of $15,000 per month, including your Social
Security benefit. 
  
 Medical Care

  
 Provided you have not enrolled in the Safety Net Plan, you and your eligible
dependents are covered by a supplemental plan which provides for reimbursement of 100% of allowable reasonable and customary charges, with an annual maximum of $10,000 per person. You will still be responsible for the deductible and required
contributions. 
  
 Dental Care 

 
 Provided you have not enrolled in the Preventive Plan, you are covered by a supplemental
plan which provides you and your family with 100% reimbursement of allowable reasonable and customary charges, with an annual maximum of $2,000. You will still be responsible for the deductible and required contributions. 
  
 Comprehensive Personal Liability 
  
 To help provide financial protection against potentially devastating effects of lawsuits,
you have $5,000,000 comprehensive personal liability coverage to supplement your personal, nonbusiness coverage. There is a minimum personal coverage requirement, as well as a small deductible amount in some cases. Coverage is also extended to
lawsuits arising out of ownership of such items as animals, swimming pools, boats, and all registered vehicles, excluding aircraft. 
  
 Executive Physical Program 
  
 Because Northrop Grumman regards the periodic physical examination of key personnel as being important to both the executive and the company, you are entitled to an
annual, company-paid, comprehensive physical examination. This examination may be obtained from one of several designated medical centers. 
  
 Company Car/Allowance 
  
 Recognizing that most executives desire to have an attractive, comfortable automobile for their use, you will be paid an annual car allowance (currently $15,000), in
increments with each regular paycheck. This allowance is designed to reimburse you for the cost of a new automobile every three years, plus insurance and maintenance costs. Reimbursements for gasoline and car washes will also be provided.

  

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 Financial Planning and Income Tax Return Preparation 
  
 In order to fully maximize the value of your executive compensation package, and to keep you
abreast of current estate planning and related tax considerations, reimbursement will be made for financial planning assistance and income tax return preparation from a reputable firm of your choice. You will be reimbursed up to $9,000 per year for
these services. 
  
 Air Travel 

 
 For air travel of two hours or longer, you may fly first class. The company will
reimburse you for membership in two airline clubs. 
  
 Clubs 
  
 The company will reimburse you for membership
(initiation fees, monthly dues, and general club assessments) in two clubs, with an annual maximum of $5,000. 
  
 (The foregoing are only brief summaries of these perquisites. The actual terms of the perquisites are governed by the formal plan documents and Company policies. In the event of any inconsistency
between the foregoing summaries and the terms of any applicable plan document or Company policy, the plan document or Company policy will control. The Company must and does reserve the right to modify or eliminate these perquisites and amend the
applicable plan documents and Company policy from time to time. To the extent that any perquisite constitutes taxable income to Executive, Executive will be responsible for any resulting tax liability and the Company shall withhold from such
perquisite or other compensation such amounts as may be required.) 
  

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 Exhibit B: Gross-Up
Provisions 
  
 (a) If it shall be determined (as hereafter provided) that
any payment or distribution by the Company or TRW to or for the benefit of Executive, whether paid or payable or distributed or distributable pursuant to the terms of this Agreement or otherwise (a “Payment”) either before or after any
purported termination of this Agreement, would be subject to the excise tax imposed by Section 4999 (or any successor thereto) of the Internal Revenue Code of 1986, as amended (the “Code”), with respect to a change in control triggered by
the Merger, or any interest or penalties with respect to such excise tax (such excise tax related to a change in control triggered by the Merger, together with any such interest and penalties related thereto, are hereafter collectively referred to
as the “Excise Tax”), then Executive shall be entitled to receive an additional payment or payments (collectively, a “Gross-Up Payment”); provided, however, that no Gross-Up Payment shall be made with respect to the Excise Tax,
if any, attributable to (i) any incentive stock option, as defined by Section 422 of the Code (“ISO”) granted prior to the execution of this Agreement, or (ii) any stock appreciation or similar right, whether or not limited, granted in
tandem with any ISO described in clause (i). The Gross-Up Payment shall be in an amount such that, after payment by Executive of all taxes (including any interest or penalties imposed with respect to such taxes), including any Excise Tax imposed
upon the Gross-Up Payment, Executive retains an amount of the Gross-Up Payment equal to the Excise Tax imposed upon the Payment. 
  
 (b) Subject to the provisions of clause (e) below, all determinations required to be made under this Exhibit B, including whether an Excise Tax is payable by Executive
and the amount of such Excise Tax and whether a Gross-Up Payment is required and the amount of such Gross-Up Payment, shall be made by a nationally recognized firm of certified public accountants (the “Accounting Firm”) selected by
Executive in his sole discretion. Executive shall direct the Accounting Firm to submit its determination and detailed supporting calculations to both the Company and Executive within 15 calendar days after the date that Executive’s employment
with the Company terminates, if applicable, or such earlier time or times as may be requested by the Company or Executive. If the Accounting Firm determines that any Excise Tax is payable by Executive, the Company shall pay the required Gross-Up
Payment to Executive within five business days after receipt of the aforesaid determination and calculations. If the Accounting Firm determines that no Excise Tax is payable by Executive, it shall, at the same time as it makes such determination,
furnish Executive with an opinion that he has substantial authority not to report any Excise Tax on his federal income tax return. Any determination by the Accounting Firm as to the amount of the Gross-Up Payment to be paid by the Company within
such 15 calendar-day period shall be binding upon the Company and Executive. As a result of the uncertainty in the application of Section 4999 (or any successor thereto) of the Code at the time of the initial determination by the Accounting Firm
hereunder, it is possible that Gross-Up Payments which will not have been made by the Company should have been made (“Underpayment”), consistent with the calculations required to be made hereunder. In the event that the Company exhausts
its remedies pursuant to Section 6(e) thereof and Executive thereafter is required to make a payment of any Excise Tax, Executive shall direct the 

  

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Accounting Firm to determine the amount of the Underpayment that has occurred and to submit its determination and detailed supporting calculations to both
the Company and Executive as promptly as possible. Any such Underpayment shall be promptly paid by the Company to or for the benefit of Executive within three calendar days after receipt of such determination and calculations. 
  
 (c) The Company and Executive shall each cooperate with the Accounting Firm in connection
with the preparation and issuance of the determination provided for in clause (b) above. Such cooperation shall include without limitation providing the Accounting Firm access to and copies of any books, records and documents in the possession of
the Company or Executive, as the case may be, that are reasonably requested by the Accounting Firm. 
  
 (d) The fees and expenses of the Accounting Firm for its services in connection with the determinations and calculations provided for in clause (b) above shall be paid by Executive. The Company shall reimburse
Executive for his payment of such costs and expenses within five business days after receipt from Executive of a statement therefore and evidence of his payment thereof. 
  
 (e) Executive shall notify the Company in writing of any claim by the Internal Revenue Service that, if successful, would require the
payment by the Company of a Gross-Up Payment. Such notification shall be given as soon as practicable but no later than 10 business days after Executive receives notice of such claim and shall apprise the Company of the nature of such claim and the
date on which such claim is requested to be paid. Executive shall not pay such claim prior to the earlier of (i) the expiration of the 30 calendar-day period following the date on which it gives such notice to the Company or (ii) the date that any
payment of taxes with respect to such claim is due. If the Company notifies Executive in writing prior to the expiration of such period that it desires to contest such claim, Executive shall: 
  
 (i) give the Company any information reasonably requested by the Company
relating to such claim; 
  
 (ii) take such action in connection
with contesting such claim as the Company shall reasonably request in writing from time to time, including without limitation accepting legal representation with respect to such claim by an attorney reasonably selected by the Company; 
  
 (iii) cooperate with the Company in good faith in order effectively to
contest such claim; and 
  
 (iv) permit the Company to
participate in any proceedings relating to such claim; 
  
 provided, however, that
the Company shall bear and pay directly all costs and expenses (including additional interest and penalties) incurred in connection with such contest and 

  

 24 

 
shall indemnify and hold Executive harmless, on an after-tax basis, for any Excise Tax or income tax, including interest and penalties with respect thereto,
imposed as a result of such representation and payment of costs and expenses. Without limitation on the foregoing provisions of this clause (e), the Company shall control all proceedings taken in connection with such contest and, at its sole option,
may pursue or forego any and all administrative appeals, proceedings, hearings and conference with the taxing authority in respect of such claim (but Executive may participate therein at his own cost and expense) and may, at its sole option, either
direct Executive to pay the tax claimed and sue for a refund or contest the claim in any permissible manner, and Executive agrees to prosecute such contest to a determination before any administrative tribunal, in a court of initial jurisdiction and
in one or more appellate courts, as the Company shall determine; provided, however, that if the Company directs Executive to pay the tax claimed and sue for a refund, the Company shall advance the amount of such payment to Executive on an
interest-free basis and shall indemnify and hold Executive harmless, on an after-tax basis, from any Excise Tax or income tax, including interest or penalties with respect thereto, imposed with respect to such advance or with respect to any imputed
income with respect to such advance; and further provided that any extension of the statute of limitations relating to payment of taxes for the taxable year of Executive with respect to which the contested amount is claimed to be due is limited
solely to such contested amount. Furthermore, the Company’s control of such contest shall be limited to issues with respect to which a Gross-Up Payment would be payable hereunder, and Executive shall be entitled to settle or contest, as the
case may be, any other issue raised by the Internal Revenue Service or any other taxing authority. 
  
 (f) If, after the receipt by Executive of an amount advanced by the Company pursuant to clause (e) hereof, Executive receives any refund with respect to such claim, Executive shall (subject to the Company’s
complying with the requirements of clause (e) hereof) promptly pay to the Company the amount of such refund (together with any interest paid or credited thereon after any taxes applicable thereto). If, after the receipt by Executive of an amount
advanced by the Company pursuant to clause (e) hereof, a determination is made that Executive shall not be entitled to any refund with respect to such claim and the Company does not notify Executive in writing of its intent to contest such denial or
refund prior to the expiration of 30 calendar days after such determination, then such advance shall be forgiven and shall not be required to be repaid and the amount of such advance shall offset, to the extent thereof, the amount of Gross-Up
Payment required to be paid. 
  

 25Litton Industries, Inc. Restoration Plan 2

 Exhibit 10(cc) 
  
 LITTON INDUSTRIES, INC. RESTORATION PLAN 2 
  
 Effective April 3, 2001 

 TABLE OF CONTENTS 
  

							
	 Article I - Definitions
	  	1
	 	  	1.01	  	Active Participant	  	1
	 	  	1.02	  	Affiliated Companies	  	1
	 	  	1.03	  	Avondale Plan	  	1
	 	  	1.04	  	Board of Directors	  	1
	 	  	1.05	  	Code	  	1
	 	  	1.06	  	Company	  	1
	 	  	1.07	  	ERISA	  	1
	 	  	1.08	  	FSSP	  	1
	 	  	1.09	  	Ingalls Salaried Plan	  	1
	 	  	1.10	  	Participant	  	1
	 	  	1.11	  	Plan	  	1
	 	  	1.12	  	Plan Year	  	2
	 	  	1.13	  	Program	  	2
	 	  	1.14	  	Retirement Plan	  	2
	 	  	1.15	  	Retirement Plan B	  	2
	 	  	1.16	  	Termination of Employment	  	2
		
	 Article II - General Provisions
	  	3
	 	  	2.01	  	In General	  	3
	 	  	2.02	  	Forms and Times of Benefit Payments	  	3
	 	  	2.03	  	Beneficiaries and Spouses	  	4
	 	  	2.04	  	Amendment and Plan Termination	  	4
	 	  	2.05	  	Not an Employment Agreement	  	6
	 	  	2.06	  	Assignment of Benefits	  	6
	 	  	2.07	  	Nonduplication of Benefits	  	7
	 	  	2.08	  	Funding	  	7
	 	  	2.09	  	Construction	  	8
	 	  	2.10	  	Governing Law	  	8
	 	  	2.11	  	Actions By Company	  	8
	 	  	2.12	  	Plan Representatives	  	8
	 	  	2.13	  	Number	  	8
		
	 Article III - Lump Sum Election
	  	9
	 	  	3.01	  	In General	  	9
	 	  	3.02	  	Retirees Election	  	9
	 	  	3.03	  	Retirees Lump Sum	  	10
	 	  	3.04	  	Actives Election	  	12

  

 i 

							
	 	  	3.05	  	Actives Lump Sum—Retirement Eligible	  	13
	 	  	3.06	  	Actives Lump Sum—Not Retirement Eligible	  	15
	 	  	3.07	  	Calculation of Lump Sum	  	15
	 	  	3.08	  	Spousal Consent	  	17
		
	 Appendix A - Litton Restoration Program – June 1, 2001 through June 30, 2003
	  	18
	 	  	A.01	  	Purpose	  	18
	 	  	A.02	  	Definitions	  	18
	 	  	A.03	  	Eligibility	  	19
	 	  	A.04	  	Amount of Benefit	  	19
	 	  	A.05	  	Preretirement Surviving Spouse Benefit	  	21
	 	  	A.06	  	Plan Termination	  	22
	 	  	A.07	  	Retirement Plan Benefits	  	22
		
	 Appendix B - Litton Cash Balance Restoration Program
	  	24
	 	  	B.01	  	Purpose	  	24
	 	  	B.02	  	Eligibility	  	24
	 	  	B.03	  	Amount of Benefit	  	24
	 	  	B.04	  	Preretirement Survivor Benefit	  	25
	 	  	B.05	  	Plan Termination	  	25
	 	  	B.06	  	Retirement Plan Benefits	  	25

  

 ii 

 ARTICLE I 
  
 Definitions 
  
 The terms in this Article have the following meanings when capitalized: 
  

	1.01	Active Participant. This term is defined in Section 3.04(a). 

  

	1.02	Affiliated Companies. The Company and any other entity related to the Company under the rules of section 414 of the Code. The Affiliated Companies include Northrop Grumman
Corporation and its 80%-owned subsidiaries and may also include other entities. 

  

	1.03	Avondale Plan. The Avondale Industries, Inc. Non-Represented Employees’ Pension Plan. 

  

	1.04	Board of Directors. The Board of Directors of Northrop Grumman Corporation. 

  

	1.05	Code. The Internal Revenue Code of 1986, as amended. 

  

	1.06	Company. Litton Industries, Inc. 

  

	1.07	ERISA. The Employee Retirement Income Security Act of 1974, as amended. 

  

	1.08	FSSP. The Northrop Grumman Financial Security and Savings Program. 

  

	1.09	Ingalls Salaried Plan. The Ingalls Shipbuilding, Inc. Salaried Employees’ Retirement Plan. 

  

	1.10	Participant. Any employee of the Company who is eligible for benefits under a particular Program and has not received full payment under the Program. However, no employees of
the Component Technologies Sector or Premier America Credit Union may be Participants. 

  

	1.11	Plan. The Litton Industries, Inc. Restoration Plan 2. 

  

 1 

	1.12	Plan Year. A 12-month period ending on December 31. 

  

	1.13	Program. One of the eligibility and benefit structures described in the Appendices. 

  

	1.14	Retirement Plan and Retirement Plans. 

  

	 	(a)	For periods after April 3, 2001 and before July 1, 2003, the FSSP, Retirement Plan “B,” and the Ingalls Salaried Plan. Appendix A provides the Program for this period.

  

	 	(b)	For periods after June 30, 2003, Retirement Plan “B,” the Avondale Plan, and the Ingalls Salaried Plan. Appendix B provides the Program for this period.

  

	1.15	Retirement Plan “B.” This term refers to the benefit structure described in the plan document entitled Northrop Grumman Retirement Plan “B” or one of its
predecessor plans. It does not include any benefit structures described in other plan documents, even if part of the legal plan named Northrop Grumman Retirement Plan “B” (for example, Northrop Grumman Retirement Plan “A,” the
Ingalls Salaried Plan, and the Avondale Plan). 

  

	1.16	Termination of Employment. Complete termination of employment with the Affiliated Companies. 

  

	 	(a)	If a Participant ceases to perform services for one Affiliated Company to begin performing services for another, he or she will not have a Termination of Employment.

  

	 	(b)	A Participant will have a Termination of Employment if he or she leaves the Affiliated Companies because the affiliate he or she works for ceases to be an Affiliated Company because
it is sold or spun off. 

  

 2 

 ARTICLE II 
  
 General Provisions 
  

	2.01	In General. The Plan contains two different benefit Programs, which are described in the Appendices. The Appendices provide the eligibility conditions and the amount of
benefits payable under the Programs. 

  

	 	(a)	See Appendix A for the Program that applies to benefits earned for services performed after April 3, 2001 and before July 1, 2003. 

  

	 	(b)	See Appendix B for the Program that applies to benefits earned for services performed after June 30, 2003. 

  

	2.02	Forms and Times of Benefit Payments. Unless a Program provides rules concerning the form and timing of benefit payments, the Company will determine the form and timing of
benefit payments in its sole discretion, except where a lump sum election under Article III applies. 

  
 For payments made to supplement those of a particular tax-qualified retirement or savings plan, the Company will only select among the options available
under that plan, using the same actuarial adjustments used in that plan, except in cases of lump sums. 
  
 Whenever the present value of the amount payable under the Plan does not exceed $10,000, it will be paid in the form of a single lump sum as of the first
of the month following Termination of Employment. The lump sum will be calculated using the factors and methodology described in Section 3.07 below. 
  
 No payments will commence under this Plan until a Participant’s Termination of Employment, even if benefits have commenced under a Retirement Plan
for Participants over age 701⁄2. 
  

 3 

	2.03	Beneficiaries and Spouses. The Participant may designate a beneficiary if the Company selects a form of payment that includes a survivor benefit. The Participant may change
this designation at any time before benefits commence. A beneficiary designation must be in writing and will be effective only when received by the Company. 

  
 The beneficiary of a Participant who is married on the date his or her benefits are scheduled to commence will be the
Participant’s spouse unless some other beneficiary is named with spousal consent. To be effective, spousal consent must be submitted in writing before benefits commence and must be witnessed by a Plan representative or notary public. Spousal
consent is not necessary if the Company determines that there is no spouse or that the spouse cannot be found. 
  
 With respect to Programs designed to supplement tax-qualified retirement or savings plans, the Participant’s spouse will be the spouse as determined
under the underlying tax-qualified plan. Otherwise, the Company has full discretionary authority to determine the identity of the Participant’s spouse. 
  

	2.04	Amendment and Plan Termination. The Company may, in its sole discretion, by written resolution adopted by the Board of Directors or its delegate, terminate, suspend or amend
this Plan at any time or from time to time, in whole or in part. 

  

	 	(a)	Except as provided in (f) and Section 2.08, no amendment, suspension or termination of the Plan may, without the consent of a Participant, affect the Participant’s right or the
right of the surviving spouse to receive benefits in accordance with this Plan as in effect on the date the employee becomes a Participant. 

  

	 	(b)	After any amendment, the Participant’s rights to benefits preserved in (a) will be determined as if he or she terminated employment immediately before the later of the
amendment’s adoption or effective date. The determination in the preceding sentence will be based on the relevant factors at that time, such as the Participant’s compensation history, service credits and Code limitations on benefits.

  

 4 

	 	(c)	The determination in (b) will be modified to take into account any post-amendment increases in benefits provided by the Company’s tax-qualified retirement and savings plans to
the extent those benefits relate to benefits due under this Plan. To the extent that any amendment to the Retirement Plans increases benefits in plan years for which a Participant already has received his or her benefits under the Plan, the Plan may
offset the Participant’s future benefits or take other reasonable steps solely to correct any duplicative payment of benefits. 

  
 Example 1: Assume an amendment eliminates all future benefits under a particular Program. Assume that the Program provides a level of benefits
reduced by benefits paid under a tax-qualified plan. Assume further that as of the date of the amendment, a Participant’s level of benefits under the Plan is $150/month less a tax-qualified plan benefit of $100/month, leaving the Participant a
net benefit of $50. Under paragraph (b), the Participant’s right to that $50 would be preserved. 
  
 Example 2: Same as Example 1, but assume that the Participant’s tax-qualified plan benefit later increases to $120/month. Under the provisions
of this paragraph (c), for future months, the Participant would only be entitled to $30 under this Plan. 
  
 Example 3: Same as Example 2, but assume that the Participant’s tax-qualified plan benefit increases to $120/month in a plan year for which
the Participant already received his benefit of $50/month from the Plan. Under the provisions of this paragraph (c), the Participant would have received the same benefits of $20/month (or its actuarial equivalent) under the tax-qualified plans and
under this Plan. To correct this, the Plan could either obtain reimbursement from the tax-qualified 

  

 5 

 
plan of the amounts previously paid under this Plan but which are now an obligation of the tax-qualified plan or temporarily decrease the Participant’s
benefits in future months by $20 until the full amount of excess benefits is offset. 
  

	 	(d)	The determination in (b) will also be adjusted to take into account post-amendment decreases in a Participant’s compensation. 

  

	 	(e)	The rights of surviving spouses claiming benefits under the Plan with respect to a Participant will be preserved and limited in the same manner as a Participant’s benefits.

  

	 	(f)	The Company may, in its sole discretion, by written resolution adopted by the Board of Directors or its delegate, amend or eliminate any of the provisions of the Plan with respect
to lump sum distributions at any time, including the calculation factors of Section 3.07. This applies whether or not a Participant has already elected a lump sum. 

  

	 	(g)	The Company may, in its sole discretion, seek reimbursement from the Company’s tax-qualified plans to the extent this Plan pays tax-qualified plan benefits to which
Participants were entitled or became entitled under the tax-qualified plans. 

  

	2.05	Not an Employment Agreement. Nothing contained in this Plan gives any Participant the right to be retained in the service of the Company, nor does it interfere with the right
of the Company to discharge or otherwise deal with Participants without regard to the existence of this Plan. 

  

	2.06	Assignment of Benefits. A Participant, surviving spouse or beneficiary may not, either voluntarily or involuntarily, assign, anticipate, alienate, commute, sell, transfer,
pledge or encumber any benefits to which he or she is or may become entitled under the Plan, nor may Plan benefits be subject to legal process or to attachment or garnishment by a Participant’s creditors. 

  

 6 

	2.07	Nonduplication of Benefits. This Section applies if, despite Section 2.06, the Company is required to make payments under this Plan to a person or entity other than the
payees described in the Plan. In such a case, any amounts due a Participant or beneficiary under this Plan will be reduced by the actuarial value of the payments made to another person or entity with respect to that Participant or beneficiary.

  
 The actuarial value of lump sums will be
determined using the factors and methodology described in Section 3.07 below. In all other cases, actuarial value will be determined using the actuarial assumptions in the underlying Retirement Plan. 
  
 In dividing a Participant’s benefit between the Participant and another
person or entity, consistent actuarial assumptions and methodologies will be used so that there is no increased actuarial cost to the Company. 
  

	2.08	Funding. Participants have the status of general unsecured creditors of the Company, and the Plan constitutes a mere promise by the Company to pay benefits in the future. The
Company may, but need not, fund benefits under the Plan through a trust. If it does so, any trust created by the Company and any assets held by the trust to assist it in meeting its obligations under the Plan will conform to the terms of the model
trust, as described in Internal Revenue Service Revenue Procedure 92-64, but only to the extent required by Internal Revenue Service Revenue Procedure 92-65. The Company and Participants intend that the Plan be unfunded for tax purposes and for
purposes of Title I of ERISA. 

  
 Any funding of
benefits under this Plan will be in the Company’s sole discretion. The Company may set and amend the terms under which it will fund and may cease to fund at any time. 
  

 7 

 To the extent the Company gives Participants and beneficiaries enforceable rights to funding, those
rights must be determined under the terms of other documents. No such rights exist under this Plan document, and the restrictions on amendments in this Plan document will in no case apply to restrict the Company’s right to cease or alter the
terms of any funding. 
  

	2.09	Construction. The Company has full discretionary authority to determine eligibility and to construe and interpret the terms of the Plan, including the power to remedy
possible ambiguities, inconsistencies or omissions. 

  

	2.10	Governing Law. This Plan is governed by the law of the State of California, except to the extent superseded by federal law. 

  

	2.11	Actions By Company. The Company’s powers under the Plan will be exercised by written resolution of the Board of Directors or its delegate. The Board may by written
resolution delegate any of the Company’s powers under the Plan and any such delegations may provide for subdelegations, also by written resolution. 

  

	2.12	Plan Representatives. Those authorized to act as Plan representatives will be designated in writing by the Board of Directors or its delegate. 

  

	2.13	Number. The singular, where appearing in this Plan, will be deemed to include the plural, unless the context clearly indicates the contrary. 

  

 8 

 ARTICLE III 
  
 Lump Sum Election 
  

	3.01	In General. This Article provides the rules under which Participants may elect to receive their Plan benefits in a lump sum. Except as provided in Section 3.07, this Article
does not apply to Active Participants (as defined in Section 3.04) whose benefits do not exceed $10,000 because they are automatically payable in lump sum form under Section 2.02. 

  
 This Article will not apply if a particular Program so provides. 

 

	3.02	Retirees Election. Participants and Participants’ beneficiaries already receiving monthly benefits under the Plan at its inception will be given a one-time opportunity
to elect a lump sum payout of future benefit payments. 

  

	 	(a)	The election must be made within a 45-day period determined by the Company. Within its discretion, the Company may delay the commencement of the 45-day period in instances where the
Company is unable to timely communicate with a particular payee. 

  

	 	(b)	The determination as to whether a payee is already receiving monthly benefits will be made at the beginning of the 45-day period. 

  

	 	(c)	An election to take a lump sum must be accompanied by a waiver of the existing retiree medical benefits by those Participants (and their covered spouses or surviving spouses)
entitled either to have such benefits entirely paid for by the Company or to receive such benefits as a result of their classification as an employee under Executive Class Code II. 

  
 Following the waiver, waiving Participants (and covered spouses or
surviving spouses) will be entitled to the coverage offered to employees who 

  

 9 

 
are eligible for Senior Executive Retirement Insurance Benefits in effect as of July 1, 1993. The cost charged to the retirees for this coverage will be
determined as if the retiree had been employed 20 or more years by the Company. 
  

	 	(d)	If the person receiving payments as of the beginning of the 45-day period dies before electing a lump sum, his or her beneficiary, if any, may not elect a lump sum.

  

	 	(e)	Elections to receive a lump sum (and waivers under (c)) must be made in writing and must include spousal consent if the payee (whether the Participant or beneficiary) is married.
Elections and spousal consent must be witnessed by a Plan representative or a notary public. 

  

	 	(f)	An election (with spousal consent, where required) to receive the lump sum made at any time during the 45-day period will be irrevocable. If no proper election has been made by the
end of the 45-day period, payments will continue unchanged in the monthly form that previously applied. 

  

	3.03	Retirees Lump Sum. If a retired Participant or beneficiary makes a valid election under Section 3.02 within the 45-day period, monthly payments will continue in the
previously applicable form for 12 months (assuming the payees live that long). 

  

	 	(a)	As of the first of the 13th month, the present value of the remaining benefit payments will be paid in a single lump sum to the Participant, if alive, or, if not, to the beneficiary
under the previously applicable form of payment. 

  

	 	(b)	No lump sum payment will be made if: 

  

	 	(1)	The Participant is receiving monthly benefit payments in a form that does not provide for survivor benefits and the Participant dies before the lump sum payment is due.

  

 10 

	 	(2)	The Participant is receiving monthly benefit payments in a form that does provide for survivor benefits, but the Participant and beneficiary die before the lump sum payment is due.

  

	(c)	The following rules apply where payment is being made in the form of a 10-year certain and continuous life annuity option: 

  

	 	(1)	If the Participant is deceased at the commencement of the 45-day election period, the surviving beneficiary may not make the election if there are less than 13 months left in the
10-year certain period. 

  

	 	(2)	If the Participant elects the lump sum and dies before the first of the 13th month and: 

  

	 	(A)	if the 10-year certain period has already ended, all monthly payments will cease at the Participant’s death and no lump sum will be paid; 

  

	 	(B)	if the 10-year certain period ends after the Participant’s death and before the beginning of the 13th month, monthly payments will end at the end of the 10-year certain period
and no lump sum will be paid; and 

  

	 	(C)	if the 10-year certain period ends after the beginning of the 13th month, monthly payments will continue through the 12th month, and a lump sum equal to the present value of the
remaining benefit payments will be paid as of the first of the 13th month. 

  

 11 

	3.04	Actives Election. Active Participants may elect to have their benefits paid in the form of a single lump sum under this Section. 

  

	 	(a)	A Participant is an Active Participant if he or she is still employed by the Affiliated Companies on or after the beginning of the initial 45-day period referred to in Section 3.02.

  

	 	(b)	An election to take a lump sum may be made at any time during the 60-day period before Termination of Employment and covers both— 

  

	 	(1)	Benefits payable to the Participant during his or her lifetime, and 

  

	 	(2)	Survivor benefits (if any) payable to the Participant’s beneficiary, including preretirement death benefits (if any) payable to the Participant’s spouse.

  

	 	(c)	An election does not become effective until the earlier of: 

  

	 	(1)	the Participant’s Termination of Employment, or 

  

	 	(2)	the Participant’s death. 

  
 A Participant’s election may be revoked before it is effective. 
  
 A Participant’s election will never take effect if the Participant does not have a Termination of Employment within 60
days after making the election. 
  

	 	(d)	An election may only be made once. It cannot be made again if it fails to become effective after 60 days or is revoked before becoming effective. 

  

 12 

	 	(e)	No election can be made after a Participant’s Termination of Employment. 

  

	 	(f)	If a Participant dies before making a lump sum election, his or her spouse may not make a lump sum election with respect to any benefits that may be due the spouse.

  

	 	(g)	Elections to receive a lump sum must be made in writing and must include spousal consent if the Participant is married. Elections and spousal consent must be witnessed by a Plan
representative or notary public. 

  

	3.05	Actives Lump Sum—Retirement Eligible. If a Participant with a valid lump sum election in effect under Section 3.04 has a Termination of Employment after he or she is
entitled to commence benefits under the Retirement Plans, payments will be made in accordance with this Section. 

  

	 	(a)	Monthly benefit payments will be made for up to 12 months, commencing the first of the month following Termination of Employment. Payments will be made: 

  

	 	(1)	for a Participant who is not married on the date benefits are scheduled to commence, based on a straight life annuity for the Participant’s life and ceasing upon the
Participant’s death should he or she die before the 12 months elapse, or 

  

	 	(2)	for a Participant who is married on the date benefits are scheduled to commence, based on a joint and survivor annuity form— 

  

	 	(A)	with the survivor benefit equal to 50% of the Participant’s benefit; 

  

	 	(B)	with the Participant’s spouse as the survivor annuitant; 

  

	 	(C)	 determined by using the contingent annuitant option factors used to convert 

  

 13 

 
straight life annuities to 50% joint and survivor annuities under the Northrop Grumman Retirement Plan “B”; and 
  

	 	(D)	with all payments ceasing upon the death of both the Participant and his or her spouse should they die before the 12 months elapse. 

  

	 	(b)	As of the first of the 13th month, the present value of the remaining benefit payments will be paid in a single lump sum. Payment of the lump sum will be made to the Participant if
he or she is still alive, or, if not, to his or her surviving spouse, if any. 

  

	 	(c)	No lump sum payment will be made if: 

  

	 	(1)	The Participant is receiving monthly benefit payments in the form of a straight life annuity and the Participant dies before the time the lump sum payment is due.

  

	 	(2)	The Participant is receiving monthly benefit payments in a joint and survivor annuity form and the Participant and his or her spouse both die before the time the lump sum payment is
due. 

  

	 	(d)	A lump sum will be payable to a Participant’s spouse as of the first of the month following the date of the Participant’s death, if: 

  

	 	(1)	the Participant dies after making a valid lump sum election but before commencement of any benefits under this Plan; 

  

	 	(2)	the Participant is survived by a spouse who is entitled to a preretirement surviving spouse benefit under this Plan; and 

  

	 	(3)	the spouse survives to the first of the month following the date of the Participant’s death. 

  

 14 

	3.06	Actives Lump Sum—Not Retirement Eligible. If a Participant with a valid lump sum election in effect under Section 3.04 has a Termination of Employment before he or she
is entitled to commence benefits under the Retirement Plans, payments will be made in accordance with this Section. 

  

	 	(a)	No monthly benefit payments will be made. 

  

	 	(b)	Following Termination of Employment, a single lump sum payment of the benefit will be made on the first of the month following 12 months after the date of the Participant’s
Termination of Employment. 

  

	 	(c)	A lump sum will be payable to a Participant’s spouse as of the first of the month following the date of the Participant’s death, if: 

  

	 	(1)	the Participant dies after making a valid lump sum election but before commencing benefits under this Plan; 

  

	 	(2)	the Participant is survived by a spouse who is entitled to a preretirement surviving spouse benefit under this Plan; and 

  

	 	(3)	the spouse survives to the first of the month following the date of the Participant’s death. 

  

	 	(d)	No lump sum payment will be made if the Participant is unmarried at the time of death and dies before the time the lump sum payment is due. 

  

	3.07	Calculation of Lump Sum. The factors to be used in calculating the lump sum are as follows: 

  
 Interest: Whichever of the following two rates that produces the smaller lump sum: 
  

	 	(1)	the discount rate used by the Company for purposes of Statement of Financial Accounting Standards No. 87 of the Financial Accounting Standards Board as disclosed in the
Company’s annual report to shareholders for the year end immediately preceding the date of distribution, or 

  

 15 

	 	(2)	the applicable interest rate under section 417(e)(3) of the Code that would be used to calculate a lump sum value for the benefit under the Retirement Plans.

  
 Mortality: The applicable mortality
table under section 417(e)(3) of the Code that would be used to calculate a lump sum value for the benefit under the Retirement Plans. 
  
 Increase in Section 415 Limit: 4% per year. 
  
 Age: Age rounded to the nearest month on the date the lump sum is payable. 
  
 The annuity to be converted to a lump sum will be the remaining annuity currently payable to the Participant or his or her
beneficiary at the time the lump sum is due. 
  
 For example,
assume a Participant is receiving benefit payments in the form of a 50% joint and survivor annuity. 
  
 If the Participant and the survivor annuitant are both still alive when the lump sum payment is due, the present value calculation will be based on the
remaining benefits that would be paid to both the Participant and the survivor in the annuity form. 
  
 If only the survivor is alive, the calculation will be based solely on the remaining 50% survivor benefits that would be paid to the survivor. 

 

 16 

 If only the Participant is alive, the calculation will be based solely on the remaining benefits that
would be paid to the Participant. 
  
 In the case of a
Participant who dies before commencing benefits under this Plan so that only a preretirement surviving spouse benefit (if any) is payable, the lump sum will be based solely on the value of the preretirement surviving spouse benefit. 
  

	3.08	Spousal Consent. Spousal consent for the elections described above is not necessary if the Company determines that there is no spouse or the spouse cannot be located.

  

			
	  
 /s/ Richard A.
Underhill
	  	  
 6/30/03

	 Richard A. Underhill
	  	Date
	 Vice President, Compensation and Benefits
	  	 

  

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 APPENDIX A 
  
 Litton Restoration Program – Post April 3, 2001 through June 30, 2003 
  

	A.01	Purpose. The purpose of this Program is simply to restore to employees of the Company the benefits they lose under the Retirement Plans as a result of the compensation limit
in Code section 401(a)(17) and/or the limit on deferrals in Code section 402(g), or any successor provisions. This Appendix applies to benefits earned for service performed after April 3, 2001 and before July 1, 2003. 

  

	A.02	Definitions. The following terms have the meanings below for purposes of this Appendix. 

  

	 	(a)	Annual Compensation. Compensation paid during the calendar year, subject to the following: 

  

	 	(1)	For compensation paid before July 1, 2003, Annual Compensation means “Compensation” as defined in the FSSP. 

  

	 	(2)	For compensation paid after June 30, 2003, Annual Compensation means “Compensation” as defined in the Northrop Grumman Savings Plan (NGSP) for participants who transfer to
that plan only in the year of transfer. 

  

	 	(3)	Compensation does not include retention bonuses paid as a result of the acquisition of Litton Industries, Inc. by Northrop Grumman Corporation. 

  

	 	(4)	Compensation does not include amounts paid for service performed before January 1, 2001 or after December 31, 2003. 

  

	 	(5)	Transfers. For anyone who transferred from the FSSP to the NGSP before 2003, the rule under (1) applies to pre-transfer periods, and the rules under (2) apply to periods
after the transfer. 

  

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	 	(b)	Annuity Equivalent. “Annuity Equivalent” determined in the same manner as the prior version of this Program. 

  

	A.03	Eligibility. An employee of the Company or one of its subsidiaries is eligible to receive a benefit under this Program if he or she: 

  

	 	(a)	retires on or after May 1, 2001; 

  

	 	(b)	has vested in benefits under one or more of the Retirement Plans that are reduced because of the application of Code section 401(a)(17) and/or Code section 402(g); and

  

	 	(c)	is not eligible to receive a benefit under the Northrop Corporation Supplemental Retirement Income Program for Senior Executives, the Litton Industries, Inc. Restoration Plan, or
any other plan or program that bars an employee from participation in this Program. 

  

	 	(d)	Has deposited the maximum amount of pretax Employee Deposits under the FSSP, including the Basic Contributions under the NGSP in a transfer year (excluding any age 50 catch-up
contributions). 

  

	A.04	Amount of Benefit. 

  

	 	(a)	General. The benefit payable under this Program with respect to a Participant who commences benefits during his or her lifetime is intended to make up for the retirement
benefit, if any, that would have been payable to the Participant under the terms of a Retirement Plan, but for the restrictions of Code sections 401(a)(17) and/or 402(g), or any successor section as those limits are described by the applicable
Retirement Plan. 

  

 19 

	 	(b)	Benefit Formula. The benefit payable under this Program with respect to a Participant who commences benefits during his or her lifetime equals the sum of all of his or her
annual Part I Excess Benefits and annual Part II Excess Benefits for each year in which the individual was a Participant. 

  

	 	(c)	Part I Excess Benefit. A Participant’s annual Part I Excess Benefit equals (4), where: 

  

	 	(1)	equals the Participant’s Annual Compensation multiplied by 4%; 

  

	 	(2)	equals the actual amount of the Participant’s pretax Employee Deposits under the FSSP or Tax-Deferred Contributions under the NGSP for the Plan Year (as limited by Code
sections 401(a)(17) and/or 402(g)); 

  

	 	(3)	equals (1) minus (2); and 

  

	 	(4)	equals 85% of (3), minus the Annuity Equivalent of (3). 

  

	 	(d)	Part II Excess Benefit. A Participant’s annual Part II Excess Benefit equals (4), where: 

  

	 	(1)	equals the Participant’s Annual Compensation multiplied by 6%; 

  

	 	(2)	equals the actual amount of the Participant’s Matched Deposits under the FSSP and Basic Contributions under the NGSP for the Plan Year (as limited by Code sections 401(a)(17)
and/or 402(g)); 

  

	 	(3)	equals (1) minus (2); 

  

	 	(4)	equals the Annuity Equivalent of 50% of (3). 

  

 20 

	 	(e)	Partial Year 2003. Subsections (c) and (d) above are modified as provided in this subsection for Participants who are eligible for an accrual under this Program in Plan Year
2003. 

  

	 	(1)	The benefit will be calculated based on a full year of Annual Compensation. 

  

	 	(2)	The total benefit in subsections (c) and (d) above are offset by the benefit amount earned from July 1, 2003 to December 31, 2003 under Appendix B. 

  

	 	(f)	Vested Benefits. Benefits under this Program will only be paid to supplement benefit payments actually made from a Retirement Plan. If benefits are not payable under a
Retirement Plan because the Participant has failed to vest or for any other reason, no payments will be made under this Program with respect to such Retirement Plan. 

  

	 	(g)	No duplication of benefits. In any year in which a Participant earns benefits in two or more qualified defined benefit plans, the benefits from this plan will be reduced for
any restoration plan benefits paid from the other defined benefit plan. 

  

	A.05	Preretirement Surviving Spouse Benefit. Preretirement surviving spouse benefits will be payable under this Program on behalf of a Participant if such Participant’s
surviving spouse is eligible for benefits payable from a Retirement Plan. The amount of the preretirement surviving spouse benefit is the amount under A.04, adjusted as follows: 

  

	 	(a)	Death on or After Normal Retirement Age. The Participant’s surviving spouse will receive a 100% survivor annuity calculated assuming the employee commenced receiving
normal retirement benefits the day before death. 

  

	 	(b)	 Death on or After Early Retirement Age, But Before Normal Retirement Age. The Participant’s surviving 

  

 21 

 
spouse will receive a 100% survivor annuity calculated assuming the employee commenced receiving early retirement benefits the day before death. 

 

	 	(c)	Death Before Early Retirement Age. The Participant’s surviving spouse will receive a 100% survivor annuity calculated assuming the employee terminated employment and
survived to normal (or early) retirement age and commenced receiving a joint and survivor annuity. 

  
 No benefit will be payable under this Program with respect to a spouse after the death of that spouse. 
  

	A.06	Plan Termination. No further benefits may be earned under this Program with respect to a particular Retirement Plan after the termination of such Retirement Plan.

  

	A.07	Retirement Plan Benefits. For purposes of this Appendix, the term “Retirement Plan Benefits” generally means the benefits actually payable to a Participant, spouse,
beneficiary or contingent annuitant under a Retirement Plan. However, this Program is only intended to remedy pension reductions caused by the operation of section 401(a)(17) and/or 402(g) and not reductions caused for any other reason. In those
instances where pension benefits are reduced for some other reason, the term “Retirement Plan Benefits” shall be deemed to mean the benefits that actually would have been payable but for such other reason. 

  
 Examples of such other reasons include, but are not limited to, the
following: 
  

	 	(a)	A reduction in pension benefits as a result of a distress termination (as described in ERISA § 4041(c) or any comparable successor provision of law) of a Retirement Plan. In
such a case, the Retirement Plan Benefits will be deemed to refer to the payments that would have been made from the Retirement Plan had it terminated on a fully funded basis as a standard termination (as described in ERISA § 4041(b) or any
comparable successor provision of law). 

  

 22 

	 	(b)	A reduction of accrued benefits as permitted under Code section 412(c)(8), as amended, or any comparable successor provision of law. 

  

	 	(c)	A reduction of pension benefits as a result of payment of all or a portion of a Participant’s benefits to a third party on behalf of or with respect to a Participant.

  

 23 

 APPENDIX B 
  
 Litton Cash Balance Restoration Program 
  

	B.01	Purpose. The purpose of this Program is simply to restore to employees of the Company the benefits they lose under Retirement Plan “B” and the Avondale Plan after
June 30, 2003 as a result of the compensation limit in Code section 401(a)(17) and/or the benefit limit in Code section 415(b), or any successor provisions. 

  

	B.02	Eligibility. An employee of the Company is eligible to receive a benefit under this Program if he or she: 

  

	 	(a)	retires on or after July 1, 2003; 

  

	 	(b)	has vested in benefits under Retirement Plan “B,” the Ingalls Salaried Plan, or the Avondale Plan that are reduced because of the application of Code section 401(a)(17)
and/or Code section 415(b); and 

  

	 	(c)	is not eligible to receive a benefit under the Northrop Corporation Supplemental Retirement Income Program for Senior Executives or any other plan or program which bars an employee
from participation in this Program. 

  

	B.03	Amount of Benefit. The benefit payable under this Program with respect to a Participant who commences benefits during his or her lifetime will equal the retirement benefit,
if any, that would have been payable to the Participant under the terms of a Retirement Plan, but for the restrictions of Code section 401(a)(17) and/or Code section 415(b) (or any successor sections) as those limits are described by the applicable
Retirement Plan. “Compensation” is defined by the pension plans and includes the amount that would have been counted under the Qualified plans except that it was deferred under The Northrop Grumman Deferred Compensation plan.

  

 24 

 Benefits under this Program will only be paid to supplement benefit payments actually made from
Retirement Plan “B” or the Avondale Plan. If benefits are not payable under Retirement Plan “B” or the Avondale Plan because the Participant has failed to vest or for any other reason, no payments will be made under this Program
with respect to those plans. 
  

	B.04	Preretirement Survivor Benefit. Preretirement survivor benefits will be payable under this Program on behalf of a Participant if the Participant’s beneficiary is
eligible for benefits payable from Retirement Plan “B” or the Avondale Plan. The benefit payable will be the amount that would have been payable under the Retirement Plan but for the restrictions of section 401(a)(17) (or any successor
section), as that limit is described in the applicable Retirement Plan. 

  
 The benefit payable under this Program will be paid in a lump sum to nonspouse beneficiaries and in either a lump sum or single life annuity to spouse beneficiaries. 
  
 The benefit payable under this Program will be reduced by the combined
amounts of the Retirement Plan Benefits and the Northrop Grumman Corporation ERISA Supplemental Plan 1 benefits attributable to the applicable Retirement Plan. 
  

No benefit will be payable under this Program with respect to a spouse after the death of that spouse. 
  

	B.05	Plan Termination. No further benefits may be earned under this Program with respect to a particular Retirement Plan after the termination of the Retirement Plan.

  

	B.06	Retirement Plan Benefits. For purposes of this Appendix, the term “Retirement Plan Benefits” generally means the benefits actually payable to a Participant, spouse,
beneficiary or contingent annuitant under a Retirement Plan. However, this Program is only intended to remedy pension reductions caused by the operation of section 401(a)(17) and not reductions caused for any other reason. Where pension benefits are
reduced for some other reason, the term “Retirement Plan Benefits” shall be deemed to mean the benefits that actually would have been payable but for such other reason. 

  

 25 

 Examples of such other reasons include, but are not limited to, the following: 
  

	 	(a)	A reduction in pension benefits as a result of a distress termination (as described in ERISA § 4041(c) or any comparable successor provision of law) of a Retirement Plan. In
such a case, the Retirement Plan Benefits will be deemed to refer to the payments that would have been made from the Retirement Plan had it terminated on a fully funded basis as a standard termination (as described in ERISA § 4041(b) or any
comparable successor provision of law). 

  

	 	(b)	A reduction of accrued benefits as permitted under Code section 412(c)(8), as amended, or any comparable successor provision of law. 

  

	 	(c)	A reduction of pension benefits as a result of payment of all or a portion of a Participant’s benefits to a third party on behalf of or with respect to a Participant.

  

	 	(d)	No duplication of benefits. If the participant is eligible for restoration plan benefits another Excess plan for the same period of service, the benefit under this plan will be
reduced accordingly to prevent a duplication of benefits. 

  

 26

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