Document:

<PAGE>

                                                                   Item No. 10.9
                                                                       Exhibit B

                                                    P.O. Box 537012
                                                    Sacramento, CA 95853-7012
[GENCORP LOGO]
WILLIAM R. PHILLIPS                                 Tel:  (916) 351-8510
Senior Vice President, Law                          Fax: (916) 351-8665
General Counsel and Secretary                       William.Phillips@GenCorp.com

                                November 30, 2001

Mr. Robert A. Wolfe
Chairman, Chief Executive Officer & President
GenCorp Inc.
P.O. Box 537012
Sacramento, CA 95853-7012

Re: Employment Retention Agreement

Dear Mr. Wolfe:

As you are aware, you have discussed the possibility of your early retirement
with the Board of Directors of GenCorp Inc. ("Board"). The Board has expressed a
strong desire that you continue to serve in your present capacity for at least
another two years, through November 30, 2003. As a consequence, I have been
authorized by the Board to offer you this Employment Retention Agreement
("Agreement") upon the terms approved by the Board at its meeting of September
7, 2001, and subject only to the approval of this Agreement by the Chairman of
the Organization and Compensation Committee (the "Committee") (which approval
shall be evidenced by his signature on this Agreement).

From the date hereof until November 30, 2003, you will continue to serve as
Chairman of the Board of Directors ("Chairman"), Chief Executive Officer
("CEO"), and President, as well as a Director, of GenCorp Inc. ("GenCorp"). You
will continue full-time performance of all duties that you heretofore have
performed in these capacities and have the same authority as you previously had.
Your employment shall be subject to termination at will by notice from you or
GenCorp, subject to the severance provisions of this Agreement.

For performance of these services, GenCorp will continue to pay your annual
compensation consisting of a base salary of not less than your current
$540,000.00 per year and year-end Management Incentive Compensation pursuant to
the plan currently in place, or any new plan that may in the future be adopted
in the sole discretion of the Board. For so long as you remain employed by
GenCorp in your present capacity: (i) both your base salary and your year-end
Management Incentive Compensation opportunity and target shall be adjustable
(upwards but not downwards), in the sole discretion of the Board, on an annual
basis; and, (ii) you will continue to be eligible for your present benefits
under GenCorp's employee benefit plans and executive perquisite programs (as
those plans may, in the sole discretion of GenCorp, be modified in the future),
including without limitation, the following: (a) GenCorp Consolidated Pension
Plan, (b) Aerojet-General Corporation Consolidated Pension Plan, (c) GenCorp
Retirement Savings Plan, (d) GenCorp Benefits Restoration Plan, (e) GenCorp
Medical Plan, (f) GenCorp Dental Plan, (g) GenCorp Flexible Benefits Plan, (h)
Employee Assistance Program, (i) Sick-Pay Program, (j) Short-Term Disability
Plan, (k) Long-Term Disability Plan, (l) Accidental Death and Dismemberment
Insurance, (m) Life Insurance, (n) Group Universal Life Insurance, (o) Vacation
Program, (p) Holiday Pay, (q) Deferred Bonus Plan, (r) Country Club Membership,
(s) Executive Physical, and (t) Financial Planning Assistance (AYCO); and, (iii)
you shall continue to be eligible, in the good faith discretion of the Board,
for new grants
<PAGE>
Robert A. Wolfe
Employment Retention Agreement
November 30, 2001
Page 2

of GenCorp stock options and GenCorp restricted stock in accordance with the
1999 Equity and Performance Incentive Plan, and any subsequently adopted GenCorp
equity participation plan.

This Agreement shall not modify your other employment related agreements
presently in force, to-wit: Severance Agreement, dated October 1, 1999
("Severance Agreement"); Indemnification Agreement, dated October 1, 1999; Stock
Option Agreements, dated September 1, 1997, March 25, 1998, March 30, 1999,
December 16, 1999, and January 16, 2001; and Restricted Stock Agreements dated
February 1, 2000 and January 16, 2001 (in the aggregate, "Prior Contracts").
Should your employment by GenCorp in your present capacity terminate prior to
November 30, 2003 for any reason other than death, disability, a Change of
Control (as defined in Paragraph 1.(d) of your Severance Agreement) or at the
will of GenCorp, all compensation and benefits (including without limitation,
pension and vesting of stock options and restricted stock) to which you are
entitled on or after the date your employment terminates shall be determined by
the Prior Contracts and by the Company's employee benefit plans described above,
in accordance with their terms.

If you continue to serve in your present capacity to November 30, 2003, or if
GenCorp elects to terminate your employment prior to that date for any reason
other than Cause, you shall:

a.    Be eligible to receive an annual pension payment (the "Pension Benefit")
      equal to the greater of $248,860.26 and the amount calculated as set forth
      below commencing upon your termination of employment. This pension payment
      shall consist of pension payments made from the appropriate combination of
      the Aerojet-General Corporation Consolidated Pension Plan and the GenCorp
      Consolidated Pension Plan (collectively "Pension Plan"); the GenCorp
      Benefit Restoration Plan (the "Restoration Plan"); and, an Enhanced
      Pension Benefit paid to you as an unsecured creditor from the cash assets
      of GenCorp. Your Pension Benefit will be calculated based upon: (a) the
      formulas in the Pension Plan; (b) your actual age; (c) your actual service
      credits plus ten whole years of service credit; and, (d) your actual final
      five year average annual plan compensation for you, but not less than
      $764,224.80. Pension Benefits will be paid as provided under the
      applicable Pension Plan and Restoration Plan (generally as an annuity over
      your lifetime) and the Enhanced Pension Benefit will be paid in an
      actuarially equivalent five equal annual installments commencing promptly
      following the date of your retirement. The amount of the Enhanced Pension
      Benefit shall consist of the difference between (i) your pension benefit
      calculated as described above, and (ii) your normal pension benefit to be
      paid as calculated under the normal terms of the Pension Plan and the
      Restoration Plan. The actuarial equivalent value of this difference shall
      be calculated using the same discount factors and mortality table as
      utilized in connection with the 2001 GenCorp Voluntary Enhanced Retirement
      Program under the 2001 Supplemental Retirement Plan for GenCorp
      Executives, and the resulting value will be paid to you (and in the event
      of your death, to your estate, except to the extent, if any, legally
      required to be paid to your spouse) in five equal installments, provided
      that you may designate another beneficiary at any time prior to
      commencement of payment by written notice to GenCorp (with such consent,
      if any, as shall be legally required of your spouse). Additionally, you
      may elect payment of the pension offered in this Agreement in the form of
      a life annuity or a 100% or 50% joint and survivor annuity, with your wife
      as the joint annuitant. Any of these optional annuity forms of payment
      shall be the actuarial equivalent of the pension amount calculated in
      accordance with the terms and procedures applicable under the Pension
      Plan, and this Agreement. Any alternative form must be elected or revoked
      at least one (1) year prior to your retirement date.

b.    Receive immediate vesting of all unexercised GenCorp stock options granted
      to you prior to November 30, 2003, which shall remain exercisable for the
      periods specified in the original grants (i.e., the remainder of the term
      of the grant);

c.    Receive immediate vesting of all GenCorp restricted stock granted to you
      prior to November 30, 2003;
<PAGE>
Robert A. Wolfe
Employment Retention Agreement
November 30, 2001
Page 3

d.    Receive in a lump-sum an amount equal to the Base Salary, if any, that
      would have been paid to you through November 30, 2003;

e.    Receive any accrued amounts including any earned but unpaid Base Salary,
      accrued but unused vacation, unreimbursed business expenses and earned
      bonus for any completed fiscal year and any amount or benefit due under
      any benefit plan (the "Accrued Amounts");

f.    Receive a pro rata bonus for the fiscal year of termination based on
      actual results and the period of the year during which you were employed
      by GenCorp (the "Pro Rata Bonus").

As used herein, "Cause" shall have the same meaning as defined in Paragraph 1(c)
of your Severance Agreement except that subpart (c)(i) shall only be Cause if
such violation is a felony and you are convicted or plead guilty or nolo
contendre to it (and it is not as a result of your vicarious liability), (ii),
(iii) and (iv) shall only be Cause if the violation is injurious to GenCorp. A
material breach of this Agreement by GenCorp, including but not limited to the
first two sentences of the second paragraph of this Agreement, that remains
uncured for ten (10) days after written notice thereof is given by you, or the
relocation of your office by more than fifty (50) miles from its present
location at the Aerojet facility in Sacramento, California shall be deemed a
termination at the will of and by GenCorp without Cause.

If you die prior to November 30, 2003 while employed by GenCorp, or while you
are totally disabled (with the onset of your disability having occurred while
you were employed by GenCorp), GenCorp will: (i) pay the Enhanced Pension
Benefit offered in this Agreement to your estate, unless otherwise required by
law, calculated as if you had retired on November 30, 2003, unless prior to your
death, with the concurrence of GenCorp, you have elected a different one of the
alternative payout options offered in this Agreement to take effect in the case
of your death, in which case the pension shall be paid in accordance with your
election and provided that you may designate another beneficiary at any time
prior to your death by written notice to GenCorp (with such consent, if any, as
shall be legally required of your spouse); (ii) vest all unvested GenCorp stock
options held by you upon your death which shall remain exercisable by your
beneficiary for the periods specified in the original grants (i.e., the
remainder of the term of the grant); (iii) vest all unvested GenCorp restricted
stock held by you upon your death and transfer that stock to your estate; and
(iv) pay to your estate, unless otherwise required by law, any Accrued Amounts,
and Pro Rata Bonus.

If you become totally disabled and unable to perform your duties as Chairman,
CEO and President, and such disability is expected to continue for at least 6
consecutive months, GenCorp shall pay you a monthly disability benefit equal to
one-twelfth of the sum of your base salary rate and target bonus plus your
benefits until the first to occur of the following events: (i) you are able to
resume performance of your duties; or (ii) November 30, 2003, at which time you
shall be eligible to retire and receive the pension and vesting of GenCorp stock
options and GenCorp restricted stock described in this Agreement. However, such
disability benefit shall be reduced by the amount of any disability benefit
payments which you are entitled to receive under the GenCorp Long-Term
Disability Plan or pursuant to federal law until such time as you retire. You
shall also receive Accrued Amounts and a Pro Rata Bonus to the extent these
amounts are not duplicative of amounts previously paid to you.

In the event a Change in Control of GenCorp occurs prior to November 30, 2003,
while you are serving in your present capacity or while you are totally disabled
(with the onset of your disability having occurred while you were employed by
GenCorp), you shall be entitled to the full benefit of your Severance Agreement
and the full benefit of this Agreement. In addition, this Employment Retention
Agreement shall take precedence over those provisions of the Pension Plan which
address Change in Control.

You will hold in confidence and will not disclose to any third person or use for
your personal benefit any confidential information or trade secret GenCorp has
disclosed to you except in compliance with legal process or, while you are an
executive of the Company, as you deem appropriate in your good faith
<PAGE>

Robert A. Wolfe
Employment Retention Agreement
November 30, 2001
Page 4

judgment. As used herein, "confidential information" and "trade secrets" mean
any and all information of GenCorp and/or any of its subsidiaries, which is not
generally available to third persons and relates to the products, customers,
pricing, terms of sale, manufacturing processes, research and development,
financial performance or any other aspects of the business of GenCorp and/or any
of its subsidiaries.

For a period of three years following the termination of your employment with
GenCorp, you will not perform, directly or indirectly, any consulting or other
services for or on behalf of any company or person in respect of any business
operations which are in material competition with GenCorp's material businesses,
provided that the foregoing shall not prevent you from providing consulting or
other services in respect of noncompetitive business operations of a person or
entity that also has competitive business operations.

This Agreement will be deemed to require you to perform personal services.
Accordingly, you may not assign any right, delegate any duty, or otherwise
transfer any interest hereunder, whether by operation of law or otherwise,
without GenCorp's prior written consent.

As a condition of receiving the benefits hereunder upon termination, you further
agree to provide GenCorp a release, generally in the form attached hereto as
Exhibit A, upon termination of your employment under circumstances that will
result in payment of the benefits offered in this Agreement.

On any termination, except a termination for Cause or a termination initiated by
you prior to November 30, 2003 (which is not deemed a termination without Cause
by GenCorp), you will also receive the items on Exhibit B hereto. This Agreement
constitutes the entire understanding between you and GenCorp regarding the
incentives the Board is offering you to continue your employment in your present
capacity through November 30, 2003. Except as expressly provided in this
Agreement, this Agreement may not be changed, amended or terminated, in whole or
in part, except by a writing executed by you and an authorized representative of
GenCorp. This Agreement shall in all respects be construed in accordance with
the laws of the State of Ohio. This Agreement shall be binding upon and shall
inure to the benefit of successors and assigns of GenCorp, including any
successor resulting from a change in control, provided the Agreement may only be
assigned by GenCorp only to a successor to all or substantially all of its
business and then only upon such successor promptly delivering to you a written
assumption of this Agreement. Any dispute under this Agreement shall be resolved
by arbitration in Sacramento, California before one arbitrator under the
jurisdiction of the American Arbitration Association (the "AAA") pursuant to the
applicable AAA rules. The judgment of the arbitrator shall be final and binding
on the parties and judgment upon it may be entered in any court of competent
jurisdiction. Each party shall bear its own costs and legal fees and shall
equally divide those of the AAA and the arbitrator, provided that the arbitrator
may award the prevailing party (as determined by the arbitrator) his or its
costs and his or its reasonable legal fees and disbursements, provided that no
award shall be made against you unless the arbitrator shall determine that you
took the material portion of your position in bad faith or that your claim was
frivolous.

                                   GENCORP INC.

                                   /s/ William R. Phillips
                                   -------------------------------------------
                                   William R. Phillips
                                   Senior Vice President, Law, General Counsel
                                   and Secretary

                                   DATE: November 30, 2001
<PAGE>

Robert A. Wolfe
Employment Retention Agreement
November 30, 2001
Page 5

ACCEPTED AND AGREED

/s/ Robert A. Wolfe
---------------------------------------
Robert A. Wolfe
Chairman, Chief Executive Officer and President

DATE: November 30, 2001

APPROVED:

/s/ William K. Hall
---------------------------------------
William K. Hall
Chairman Organization & Compensation Committee
GenCorp Board of Directors
<PAGE>
                                                                       EXHIBIT A

                                RELEASE OF CLAIMS

         In consideration for the amounts to be paid to me under the Employment
Retention Agreement with GenCorp Inc. dated November 30, 2001, ("Agreement"), I
hereby irrevocably and unconditionally release any and all claims described in
subsection (i) hereafter that I may now have against the following persons or
entities (the "Releasees"): GenCorp Inc., all related, affiliated or subsidiary
companies of GenCorp, and their predecessors, successors and assigns; and, with
respect to each such entity, all of its past and present employees, officers,
directors, stockholders, owners, representatives, assigns, attorneys, agents,
insurers, employee benefit programs (and the trustees, administrators,
fiduciaries and insurers of such programs) and any other persons acting by,
through, under or in concert with any of the persons or entities listed in this
subsection in such capacities.

                  (i) CLAIMS RELEASED: Except as provided in subsection (iii),
         the claims released include all claims, promises, debts, causes of
         action or similar rights of any type or nature that I have or had which
         in any way relate to: (a) my employment with GenCorp, or the
         termination of that employment through voluntary retirement, such as
         claims for compensation, bonuses, commissions, or lost wages, (b) the
         design or administration of any employee benefit plan or program, other
         than my rights as a participant in the employee benefit programs and
         the Prior Agreements described in the Agreement, (c) any rights to
         severance or similar benefits under any employment agreement, any
         termination Agreement, or any related program, policy or procedure of
         GenCorp, except my Severance Agreement which shall remain in effect,
         (d) any other claims or demands I may have against the Releasees. The
         claims released, for example, may have arisen under any of the
         following statutes or common law doctrines:

                           ANTI-DISCRIMINATION STATUTES including, without
                  limitation, the Age Discrimination in Employment Act and
                  Executive Order 11141, which prohibit age discrimination in
                  employment, Title VII of the Civil Rights Act of 1964, Section
                  1981 of the Civil Rights Act of 1866 and Executive Order
                  11246, which prohibit discrimination based on race, color,
                  national origin, religion or sex, the Equal Pay Act, which
                  prohibits paying men and women unequal pay for equal work; the
                  Americans With Disabilities Act and Sections 503 and 504 of
                  the Rehabilitation Act of 1973, which prohibit discrimination
                  against the disabled; the California Fair Employment and
                  Housing Act, which prohibits discrimination in employment
                  based on race, color, national origin, ancestry, physical or
                  mental disability, medical condition, marital status, sex or
                  age; and any other federal, state or local laws or regulations
                  prohibiting employment discrimination.

<PAGE>

                           FEDERAL EMPLOYMENT STATUTES including, without
                  limitation, the WARN Act, which requires that advance notice
                  be given of certain work force reductions; the employee
                  Retirement Income Security Act of 1974, which, among other
                  things, protects pension or welfare benefits; and the Fair
                  Labor Standards Act of 1938, which regulates wage and hour
                  matters.

                           OTHER LAWS including, without limitation, any
                  federal, state or local laws providing workers compensation
                  benefits, restricting an employer's right to terminate
                  employees or otherwise regulating employment, any federal,
                  state or local law enforcing express or implied employment
                  contracts or requiring an employer to deal with employees
                  fairly or in good faith; California Labor Code ss.ss. 200 ET
                  SEQ., relating to salary, commission, compensation, benefits
                  and other matters, the California Workers' Compensation Act,
                  the California Unemployment Insurance Code; any applicable
                  California Industrial Welfare Commission Order; and any other
                  federal, state or local laws, whether based on statute,
                  regulation or common law, providing recourse for alleged
                  retaliation or wrongful discharge, physical or personal
                  injury, emotional distress, fraud, negligent
                  misrepresentation, libel, slander, defamation, whistleblower
                  and similar or related claims.

                  (ii) RELEASE EXTENDS TO BOTH KNOWN AND UNKNOWN CLAIMS: This
         Release covers both claims that I know about and those that I may not
         know about. I hereby expressly waive all rights afforded by any statute
         (including Section 1542 of the Civil Code of the State of California)
         which limits the effect of a release with respect to unknown claims.
         Section 1542 of the Civil Code of the State of California states as
         follows:

                  A general release does not extend to claims which the creditor
                  does not know or suspect to exist in his favor at the time of
                  executing the release, which if known by him must have
                  materially affected his settlement with the debtor.

I understand the significance of this Release of unknown claims and my waiver of
statutory protection against a release of unknown claims (such as under Section
1542).

                  (iii) CLAIMS NOT RELEASED: This Release does not release: (a)
         my right to enforce any provision of the Agreement; (b) my rights as a
         participant, if any, to unpaid salary, pension, welfare and/or COBRA
         benefits under any GenCorp employee benefit plan or program, except to
         the extent that any claim was rejected or denied, either as to me or as
         to other similarly situated employees, before the Agreement and this
         Release of Claims become effective; or (d) any right to indemnity
         relating to third-party claims against me arising out of the course or
         scope of my employment, and granted under the Articles of

<PAGE>

         Incorporation, the Corporate Code of Regulations, my Indemnification
         Agreement and/or by operation of law or (e) any rights to directors and
         officers liability insurance.

                  (iv) Ownership of Claims: I hereby represent that I have not
         assigned or transferred, or purported to assign or transfer, all or any
         part of any claim released herein.

Date ______________________                _____________________________________
                                                       Robert A. Wolfe

<PAGE>

                                    EXHIBIT B

1.       Office and secretarial support for 3 years.

2.       Charitable matching contributions for 3 years.

3.       Financial planning and tax preparation for 3 years.

4.       Existing home security equipment, home computer, laptop and similar
         equipment.

5.       Transfer of current country club membership to Executive.<PAGE>
                                                                       Exhibit C

                          2001 SUPPLEMENTAL RETIREMENT
                           PLAN FOR GENCORP EXECUTIVES

<PAGE>

                          2001 SUPPLEMENTAL RETIREMENT
                           PLAN FOR GENCORP EXECUTIVES

                                TABLE OF CONTENTS

Article 1         Introduction................................................1

Article 2         Definitions.................................................2

Article 3         Eligibility.................................................3

Article 4         Supplemental Retirement Benefits............................4

       4.1        Enhanced Pension Benefit....................................4
       4.2        Salary Continuation.........................................4
       4.3        Retiree Medical Benefits....................................6
       4.4        Pre-Retirement Financial Counseling & Outplacement
                   Support....................................................7

Article 5         Vesting.....................................................7

Article 6         Payment of Benefits.........................................7

       6.1        Payment of Enhanced Pension Benefit.........................7
       6.2        Payment of Salary Continuation..............................8
       6.3        Payment of Benefits in the Event of Death...................9

Article 7         Claims Procedure...........................................10

       7.1        Claim......................................................10
       7.2        Denial.....................................................10
       7.3        Appeal.....................................................11
       7.4        Final Decision.............................................11
       7.5        Form.......................................................11
       7.6        Legal Effect...............................................11

Article 8         Effect of Fiduciary Action.................................12

Article 9         Miscellaneous..............................................13

       9.1        Amendment..................................................13
       9.2        Source of Payments.........................................13
       9.3        Non-Alienation Of Benefits.................................13
       9.4        No Effect on Employment Rights.............................14
       9.5        Other Plans................................................14

                                      -i-
<PAGE>

       9.6        No Severance Benefits......................................15
       9.7        Applicable Law.............................................15

Article 10        Information Required by ERISA..............................15

       10.1       Name of Plan...............................................15
       10.2       Type of Plan...............................................15
       10.3       Plan Administrator.........................................15
       10.4       Agent for Service of Legal Process.........................16
       10.5       Statement of ERISA Rights..................................16

Appendix A        Summary Description - 2001 GenCorp Voluntary Enhanced
                  Retirement Program (Non-Qualified), September 27, 2001

Appendix B        Supplemental Q & A's - 2001 GenCorp Voluntary Enhanced
                  Retirement Program (Non-Qualified), November 5, 2001

                                      -ii-
<PAGE>

                          2001 SUPPLEMENTAL RETIREMENT
                           PLAN FOR GENCORP EXECUTIVES

                             ARTICLE 1: INTRODUCTION

       1.1 GenCorp Inc. hereby adopts this 2001 Supplemental Retirement Plan for
GenCorp Executives ("Plan") to provide supplemental retirement benefits to
certain salaried employees on its corporate payroll who elect to retire as
herein provided. In so doing, GenCorp's intention is that the Plan will be a
pension plan within the meaning of Section 3(2) of the Employee Retirement
Income Security Act of 1974 ("ERISA"), but not a tax-qualified plan, and the
benefit herein provided will supplement the pension benefits for which such
employees are eligible under the GenCorp Consolidated Pension Plan (Program B)
("Pension Plan").
       The provisions of this Plan are intended to reflect and incorporate the
terms of the 2001 GenCorp Voluntary Enhanced Retirement Program (Non-Qualified
Plan) as set forth in the attached Appendix A (Summary Description, dated
September 27, 2001) and Appendix B (Supplemental Q & A's, dated November 5,
2001). If there is any unintended substantive difference between the Appendices
and this document, the terms of the Appendices will control.

       1.2 For purposes of the Plan, "retire," "to retire, " and "retirement"
mean the final and complete severance of employment with GenCorp for all
purposes, including all benefit plans sponsored by GenCorp for active and former
employees, on the applicable Retirement Date.

       1.3 This plan document contains all information required by law to be
provided to employees and will be filed with the U.S. Department of Labor as the
summary plan description for the Plan.

       1.4        The Plan is effective as of December 1, 2001.

                                      -1-
<PAGE>

                             ARTICLE 2: DEFINITIONS

       2.1 "Beneficiary" means a named beneficiary, joint annuitant, or
surviving spouse of a deceased Participant. Notwithstanding the foregoing
sentence, the Beneficiary for benefits accrued under Article 4 shall be the
beneficiary as determined under the Pension Plan for death benefits payable
thereunder.

       2.2 "Benefits Restoration Plan" means the Benefits Restoration Plan for
Salaried Employees of GenCorp Inc. and Certain Subsidiary Companies.

       2.3 "Code" means the Internal Revenue Code of 1986, as presently in
effect or hereafter amended.

       2.4 "Company" means GenCorp Inc.

       2.5 "Committee" means the Administrative Committee designated under the
Pension Plan.

       2.6 "Effective Date" means December 1, 2001.

       2.7 "ERISA" means the Employee Retirement Income Security Act of 1974, as
presently in effect or as hereafter amended.

       2.8 "Normal Pension Benefit" means the combined monthly pension benefit
under the Pension Plan and, if applicable, the Benefits Restoration Plan.

       2.9 "Participant" means an employee of the Company who meets the
eligibility requirements for participation in the Plan as set forth in Section
3.

                                      -2-
<PAGE>

       2.10 "Pension Plan" means the GenCorp Consolidated Pension Plan (Program
`B').

       2.11 "Plan" means the plan set forth in this instrument and known as the
"2001 Supplemental Retirement Plan for GenCorp Executives." The Plan
incorporates the terms of the 2001 GenCorp Voluntary Enhanced Retirement Program
as set forth in Appendix A and Appendix B attached hereto.

       2.12 "Plan Administrator" means the Company.

       2.13 "Retirement Date" means the date designated by the Company, in its
sole discretion, upon which a Participant's employment with the Company will
terminate. A Participant's Retirement Date will be at the completion of the
Participant's Salary Continuation period determined in accordance with Section
4.2 .

       2.14 "Vesting Service" means Vesting Service as determined under the
Pension Plan.

                             ARTICLE 3: ELIGIBILITY

       In order to participate in this Plan and accrue benefits as described in
Article 4, an individual must (i) be a salaried employee on the Company's
corporate payroll who, as of September 12, 2001, had either (A) attained the age
of 50 and completed at least 5 years of Vesting Service; (B) completed 25 years
of Vesting Service, regardless of age; or (C) completed at least 5 years of
Vesting Service and attained sufficient age and service in order to qualify for
an Early Retirement Pension once the additional age and service credits afforded
under this Plan are considered; (ii) be a participant under the Pension Plan;
(iii) retire pursuant to the GenCorp 2001 Voluntary Enhanced Retirement Program
(effective September 27, 2001), but be ineligible to receive the benefit

                                      -3-
<PAGE>

enhancements provided thereunder through the Pension Plan; and (iv) be among a
select group of management or highly compensated employees within the meaning of
Sections 201(2), 301(a)(3), and 401(a)(1) of ERISA. Once an eligible individual
becomes a Participant, such individual shall continue to be a Participant until
the complete distribution to the Participant (or Beneficiary, if applicable) of
all benefits accrued under the Plan.

                   ARTICLE 4: SUPPLEMENTAL RETIREMENT BENEFITS

       4.1        ENHANCED PENSION BENEFIT.

                  (a) A Participant's Enhanced Pension Benefit will be
         calculated by (i) adding a combination of ten (10) additional whole
         years of age and service credits to the Participant's Vesting and
         Benefit Service and age under the Pension Plan in accordance with
         subsection (b), as of the Participant's designated Retirement Date
         hereunder; and (ii) subtracting the Participant's Normal Pension
         Benefit.

                  (b) The allocation of whole years between age and service that
         yields the highest benefit will be used to compute the Participant's
         Enhanced Pension Benefit, provided such allocation would make the
         Participant eligible for an Early Retirement Pension (age 55 with 10
         years of service) under the Pension Plan as of December 1, 2001.

         4.2      SALARY CONTINUATION.

                  (a) Participants will be eligible for Salary Continuation
         according to the following schedule:

                                      -4-
<PAGE>

                  Level                                    Amount
                  -----                                    ------

         Corporate Officers under                    24 mos. Base Salary
         Spinoff-related Contracts               & Bonus @ 50% of Eligibility

         Other Corporate Officers                    18 mos. Base Salary

         Senior Management                            6 mos. Base Salary

                  (b) Salary Continuation will commence on a date designated by
         the Company, which date shall not be earlier than December 1, 2001 and
         not later than December 1, 2002. Upon completion of Salary
         Continuation, eligible GenCorp Executives will be deemed to have
         reached their designated Retirement Date.

                  (c) Salary Continuation, including any bonus, will be paid on
         a bi-weekly basis, and will be considered compensation under the
         Pension Plan and the Benefits Restoration Plan, with age and service
         credit afforded through the duration of Salary Continuation. Taxes will
         be withheld as required from Salary Continuation payments.

                  (d) While on Salary Continuation, Participants will be
         employed on "Special Assignment" and will be eligible to participate in
         all GenCorp pension and welfare benefit plans, programs and
         perquisites, according to their terms, with the exception of:

                           (i) Previously granted stock options will NOT
                  continue to vest while on Salary Continuation, nor will
                  additional stock options be granted. However, those stock
                  options previously granted and vested will be exercisable in
                  accordance with the terms of their grant by Participants
                  during Salary Continuation, and thereafter as retirees.

                                      -5-
<PAGE>

                           (ii) Except for bonus amounts to be paid during
                  Salary Continuation to certain Corporate Officers under
                  Spinoff-related Contracts, Participants will NOT be eligible
                  for, and will not earn, annual bonuses under the GenCorp
                  Executive Incentive Compensation Plan while on Salary
                  Continuation. However, such Participants will be eligible for
                  any bonus, including any pro-rata bonus, attributable to
                  service prior to commencement of Salary Continuation, and
                  specifically, any bonus earned for service in the 2001 and
                  2002 fiscal years.

                           (iii) Additional restricted shares under the 1999
                  Equity and Incentive Compensation Plan will NOT be granted to
                  Participants on Salary Continuation. However, Participants
                  will be eligible to retain previously granted restricted
                  shares that have vested, including (A) those restricted shares
                  that vest in February 2002 as the result of achieving
                  performance objectives in fiscal year 2001, and (B) for
                  Participants who work throughout the entire fiscal year 2002,
                  those restricted shares that vest in February 2003 as a result
                  of achieving performance objectives in fiscal year 2002.

                           (iv) Participants will not be eligible to participate
                  in any plans, programs or perquisites not listed in the
                  response to Question No. 46 in the Summary Description
                  (Non-Qualified Plan) for the 2001 GenCorp Voluntary Enhanced
                  Retirement Program.

         4.3 RETIREE MEDICAL BENEFITS. Participants will be eligible to
participate in the GenCorp Retiree Medical Plan, according to the terms of that
plan as it may be amended, modified or terminated. Employees initially hired at
GenCorp on or after January 1, 1995, or initially hired at Aerojet on or after
January 1, 1997, are not eligible for retiree medical benefits under the GenCorp
Retiree Medical Plan, or under this Plan.

                                      -6-
<PAGE>

If the Participant should die before his Retirement Date, his surviving spouse
(if any) will be eligible to participate in the GenCorp Retiree Medical Plan (if
the Participant was otherwise eligible to participate) as if the Participant had
already retired.

         4.4 PRE-RETIREMENT FINANCIAL COUNSELING & OUTPLACEMENT SUPPORT.
Pre-retirement financial counseling and outplacement support will be provided to
Participants in a form and duration to be determined by the Company, at its
discretion.

                               ARTICLE 5: VESTING

         Benefits accrued under Article 4 shall be immediately vested and
non-forfeitable.

                         ARTICLE 6: PAYMENT OF BENEFITS

         6.1 PAYMENT OF ENHANCED PENSION BENEFIT. The Enhanced Pension Benefit
will be paid, commencing at the end of Salary Continuation, in only one of two
ways, with no further lump-sum payment eligibility: (1) as a - monthly benefit,
or (2) in five equal annual installments.

                  (i) MONTHLY BENEFIT. If a monthly benefit is elected, a
         Participant can receive his entire pension benefit (Normal Pension
         Benefit and Enhanced Pension Benefit) in the form of level monthly
         payments over his lifetime. The same optional forms of benefit (I.E.,
         single life or joint & survivor annuities) available under the Pension
         Plan can be elected for the entire pension benefit.

                           (A) If the eligible employee is under 55 (the
                  earliest date payments can begin under the Pension Plan and
                  Benefits Restoration Plan) when Salary Continuation ends, then
                  more of the total monthly benefit will come from the Enhanced
                  Pension Benefit until age 55. At

                                      -7-
<PAGE>

                  age 55, the Enhanced Pension Benefit will be reduced by the
                  amount payable from the Pension Plan and Benefits Restoration
                  Plan, and the eligible employee will be permitted to elect the
                  timing and form of his payments from the Pension Plan and the
                  Benefits Restoration Plan.

                  (ii) FIVE ANNUAL INSTALLMENTS. If a Participant elects to have
         his Enhanced Pension Benefit paid in the form of five (5) annual
         installments, the amount of the installments will be calculated and
         paid as follows:

                           (A) First, the lump-sum present value of the monthly
                  payments under the Enhanced Pension Benefit (I.E., the
                  difference between the total monthly payments and the portion
                  payable from the Pension Plan and the Benefits Restoration
                  Plan, assuming that those payments would start at the earliest
                  possible date) will be determined. The lump sum present value
                  will be determined using a 7.5% discount factor and the
                  standard mortality table used by the Company for pension
                  accounting purposes; and

                           (B) Second, the lump-sum present value will be
                  amortized (using the same 7.5% interest rate) into five equal
                  annual installments.

                           (C) The first installment will be paid at the end of
                  Salary Continuation, with subsequent installments paid on or
                  about the same date in each of the four succeeding years.

The Enhanced Pension Benefit will be subject to all applicable taxes.

         6.2 PAYMENT OF SALARY CONTINUATION. Salary Continuation, including any
bonus, will be paid on a bi-weekly basis, and will be considered compensation
under

                                      -8-
<PAGE>

the Pension Plan and the Benefits Restoration Plan, with age and service credit
afforded through the duration of Salary Continuation. Taxes will be withheld as
required from Salary Continuation payments.

         6.3 PAYMENT OF BENEFITS IN THE EVENT OF DEATH.

                 (a) ENHANCED PENSION BENEFIT.

                           (i) If a Participant should die before his Retirement
                  Date, his unpaid Enhanced Pension Benefit will be paid to his
                  surviving spouse. If the Participant has no surviving spouse,
                  his unpaid Enhanced Pension Benefit will be paid (A) to the
                  beneficiary designated by the Participant on the form provided
                  for this purpose, or (B) if no beneficiary has been
                  designated, to his estate.

                           (ii) If a Participant should die after his Retirement
                  Date (and after payment of his Enhanced Pension Benefit has
                  commenced), his unpaid Enhanced Pension Benefit shall be
                  distributed as follows:

                                    (A) If the Participant has elected to
                           receive his Enhanced Pension Benefit in monthly
                           payments, survivor benefits will be paid in
                           accordance with the distribution option selected by
                           the Participant in accordance with the applicable
                           spousal consent rules.

                                    (B) If the Participant has elected to
                           receive his Enhanced Pension Benefit in 5 annual
                           installments, survivor benefits will be paid to the
                           beneficiary designated by the Participant on the form
                           provided for this purpose. The beneficiary
                           designation will be

                                      -9-
<PAGE>

                           subject to the same spousal consent rules that apply
                           to the payment of benefits under the qualified plan.

                           (b) SALARY CONTINUATION. If a Participant should die
                  before his Retirement Date, his remaining Salary Continuation
                  will be provided to his surviving spouse. If the Participant
                  has no Surviving Spouse, his remaining Salary Continuation
                  will be paid (i) to the beneficiary designated by the
                  Participant on the form provided for this purpose, or (ii) if
                  no beneficiary has been designated, to his estate.

                           ARTICLE 7: CLAIMS PROCEDURE

         7.1 CLAIM. If the Company fails to pay any supplemental retirement
benefit to which a Participant is entitled hereunder or if any Participant
believes that the Plan is not being administered or operated as to him or her in
accordance with its terms, such Participant may file a written claim in
accordance with this Article 7. The Participant shall present the claim to the
Plan Administrator in writing. The Director, Retirement Benefits, for
Aerojet-General Corporation ("Claims Official") shall, within a reasonable time,
consider the claim and shall issue a determination thereof in writing. If the
claim is granted, the appropriate payment shall be made.

         7.2 DENIAL. If the claim is wholly or partially denied, the Claims
Official shall, within thirty days (or such longer period as may be reasonably
necessary), provide the claimant with written notice of the denial, setting
forth, in a manner calculated to be understood by the claimant,

         (a)      the specific reason or reasons for the denial,

         (b)      specific references to pertinent Plan provisions on which the
                  denial is based,

         (c)      a description of any additional material or information
                  necessary for the

                                      -10-
<PAGE>

                  claimant to perfect the claim and an explanation of why the
                  material or information is necessary, and

         (d)      an explanation of the Plan's claim review procedure.

If the Claims Official fails to respond to the claim within the period of time
specified in Section 7.2, the claim will be deemed denied.

         7.3 APPEAL. Each claimant may appeal the denial of his or her claim to
the Committee within sixty days after receipt of written notice of the claim
denial by filing with the Committee a written application for review. The
claimant may submit therewith pertinent documents, and a statement of facts and
issues.

         7.4 FINAL DECISION. The decision by the Committee upon review of a
claim shall be made not later than sixty (60) days after the written request for
review is received by the Committee, unless special circumstances require an
extension of time for processing, in which case a decision shall be rendered as
soon as possible, but not later than one hundred twenty (120) days after receipt
of the request for review.

         7.5 FORM. The decision on review shall be in writing and shall include
specific reasons for the decision written in a manner calculated to be
understood by the claimant, with specific references to the pertinent Plan
provisions on which the decision is based.

         7.6 LEGAL EFFECT. To the extent permitted by law, the decision of the
Claims Official (if no review thereof is requested as herein provided) or the
decision of the Committee, as the case may be, shall be final and binding on all
parties. Any claims which the claimant does not pursue through the review and
appeal stages of the procedures herein provided shall be deemed waived, finally
and irrevocably. No legal

                                      -11-
<PAGE>

action for benefits under the Plan shall be brought unless and until the
claimant has exhausted his or her remedies under this Article 7. If, after
exhausting the claims and appeal procedures, a claimant institutes any legal
action against the Plan and/or the Company, the claimant may present only the
evidence and theories which the claimant presented during the claims and appeal
procedures. Judicial review of the claimant's denied claim shall be limited to a
determination of whether the denial was an abuse of discretion based on the
evidence and theories which were presented to and considered by the Committee
during the claims and appeal procedure.

                      ARTICLE 8: EFFECT OF FIDUCIARY ACTION

                  (a) The Plan Administrator shall administer the Plan in
         accordance with its terms. The Plan Administrator shall have the
         discretion to make any findings of fact needed in the administration of
         the Plan.
                  (b) The Committee shall have the discretion to interpret or
         construe the terms of the Plan, whether express or implied, and resolve
         any ambiguities, including but not limited to terms governing the
         eligibility of employees and the administration of the Plan, and
         fashion any remedy which the Committee, in its sole judgment, deems
         appropriate. The validity of any such finding of fact, interpretation,
         construction or decision shall not be given DE NOVO review if
         challenged in court, by arbitration or in any other forum, and shall be
         upheld unless clearly arbitrary or capricious.
                  (c) To the extent the Plan Administrator or the Committee has
         been granted discretionary authority under the Plan, such fiduciary's
         prior exercise of such authority shall not obligate it to exercise its
         authority in a like fashion thereafter.
                  (d) If, due to errors in drafting, any Plan provision does not
         accurately reflect its intended meaning, as demonstrated by consistent
         interpretations or other evidence of intent, or as determined by the
         Committee in its sole and

                                      -12-
<PAGE>

         exclusive judgment, the provision shall be considered ambiguous and
         shall be interpreted by the Plan Administrator in a fashion consistent
         with its intent, as determined by the Committee in its sole discretion.
         The Committee, without the need for Board of Directors' approval, may
         amend the Plan retroactively to cure any such ambiguity.

                  (e) This Article 8 may not be invoked by any person to require
         the Plan to be administered in a manner which is inconsistent with its
         interpretation by the Committee.
                  (f) All actions taken and all determinations made in good
         faith by the Plan Administrator or by the Committee shall be final and
         binding upon all persons claiming any interest in or under the Plan.

                            ARTICLE 9: MISCELLANEOUS

         9.1 AMENDMENT . The Plan may be amended, as to any Participant, only
with the mutual consent, documented in writing, of (i) the Participant and (ii)
the Company, appropriately authorized by the Directors. No representative of the
Company or any other person has the authority to orally expand or otherwise
change the written terms of the Plan.

         9.2 SOURCE OF PAYMENTS. Payments under this Plan shall be made by the
Company. The Plan shall be unfunded and the Company shall not be required to
establish any special or separate fund nor to make any other segregation of
assets in order to assure the payment of any amounts under the Plan. However,
the Company may, at anytime, in its sole discretion, elect to establish and fund
a "rabbi trust" intended to ensure payments under the Plan.

         9.3 NON-ALIENATION OF BENEFITS. No benefit payable at any time under
the

                                      -13-
<PAGE>

Plan shall be subject in any manner to alienation, sale, transfer, assignment,
pledge, attachment or encumbrance of any kind. Any attempt to alienate, sell,
transfer, assign, pledge or otherwise encumber any such benefit, whether
presently or thereafter payable, shall be void. No benefit under this Plan shall
in any manner be liable for or subject to the debts or liabilities of any
Participant or former Participant or Beneficiary. If a Participant or former
Participant or Beneficiary shall attempt to or shall alienate, sell, transfer,
assign, pledge or otherwise encumber benefits under the Plan or any part
thereof, or if by reason of bankruptcy or other event happening at any time such
benefits would devolve upon anyone else or would not be enjoyed by such
individual, then the Administrative Committee in its discretion may terminate
such interest in any such benefit and hold or apply it to or for his benefit or
the benefit of the Participant's spouse, children or other dependents, or any of
them, in such a manner as the Administrative Committee may deem proper.

         9.4 NO EFFECT ON EMPLOYMENT RIGHTS. Employment rights with the Company
shall not be enlarged, increased, or otherwise affected hereby.

         9.5 OTHER PLANS.

                  (a) Except as provided in this Plan, payment of any
         supplemental retirement benefit under the Plan will not adversely
         affect a Participant's rights under any other welfare or pension
         benefit plan of the Company, and a Participant's rights under such
         other plans shall be governed by the terms thereof.
                  (b) Except for Salary Continuation determined under Section
         4.2 and paid under Section 6.2, no supplemental retirement benefit paid
         hereunder will be deemed to be, or included in, compensation for
         purposes of determining benefits under any other welfare or pension
         benefit plan of the Company.

                                      -14-
<PAGE>

         9.6 NO SEVERANCE BENEFITS. Due to a Participant's voluntary election to
retire under the 2001 GenCorp Voluntary Enhanced Retirement Program, he or she
will not be eligible to receive any severance pay or benefit payable under any
plan, policy or practice of the Company to employees who are laid off or
discharged involuntarily due to lack of work or other reason specified in such
plan, policy or practice, including but not limited to the GenCorp Involuntary
Separation Pay Plan.

         9.7 APPLICABLE LAW. Except to the extent governed by ERISA, this Plan
shall be governed by the laws of the State of Ohio.

                    ARTICLE 10: INFORMATION REQUIRED BY ERISA

         10.1 NAME OF PLAN. The name of the Plan is the 2001 Supplemental
Retirement Plan for GenCorp Executives.

         10.2 TYPE OF PLAN.  This is a pension plan.

         10.3 PLAN ADMINISTRATOR. The Plan Administrator's name, address,
telephone number, employer identification number and plan number are as follows:

         Name:                      GenCorp Inc.

         Address:                   P. O. Box 537012
                                    Sacramento, CA 95853-7012

         Telephone Number:          916-355-6550

         EIN:                       34-0244000

         Plan Number:               ___

         Plan Year:                 The twelve month period ending on November
                                    30.

         Contact:                   Samuel S. Gallardo
                                    Director, Retirement Benefits

                                      -15-
<PAGE>

         10.4 AGENT FOR SERVICE OF LEGAL PROCESS. The name and address of the
person designated as agent for service of legal process is the Plan
Administrator.

         10.5 STATEMENT OF ERISA RIGHTS.

                  (a) As a Participant in this Plan, you are entitled to certain
         rights and protections under ERISA. ERISA provides that all Plan
         Participants shall be entitled to:

         --       Examine, without charge, at the Administrator's office all
                  Plan documents, including the Plan instrument (which is this
                  pamphlet), and the Plan's annual report. Copies of these
                  documents and other Plan information may also be obtained upon
                  written request to the Plan Administrator; provided that a
                  reasonable charge may be made for copies.

         --       Receive a summary of the Plan's annual financial report. The
                  Plan Administrator is required by law to furnish such
                  Participant with a copy of this summary annual report.

                  (b) In addition to creating rights for Plan Participants,
         ERISA imposes duties upon the people who are responsible for the
         operation of this Plan. The people who operate your Plan, called
         "fiduciaries" of the Plan, have a duty to do so prudently and in the
         interests of you and other Plan Participants and beneficiaries. No one,
         including your employer, or any other person may fire you or otherwise
         discriminate against you in any way to prevent you from obtaining
         benefits or exercising your rights under ERISA. If your claim for
         benefits is denied in whole or in part, you must receive a written
         explanation of the reason for this denial. You have the right to have
         the Plan Administrator review and reconsider your claim, as described
         elsewhere in this pamphlet.

                                      -16-
<PAGE>

                  (c) Under ERISA, there are two steps you can take to enforce
         the above rights. For instance, if you request certain materials
         required to be furnished by the Plan and do not receive them within 30
         days, you may file suit in federal court. In such a case, the court may
         require that you be provided with the materials and paid up to $100.00
         a day until you receive them, unless the materials were not sent
         because of reasons beyond the Plan Administrator's control. If you have
         a claim for benefits which is denied or ignored in whole or in part,
         you may file suit in a state or federal court. If it should happen that
         the Plan's fiduciaries misused the Plan's money, if any, or if you are
         discriminated against for asserting your rights, you may seek
         assistance from the U.S. Department of Labor or you may file suit in a
         federal court. The Court will decide who should pay the court costs and
         legal fees. If you are successful, the court may order the person you
         have sued to pay these costs and fees. If you lose, the court may order
         you to pay these costs and fees if, for example, it finds your claim is
         frivolous.

                  (d) While this Plan is a "pension plan" within the meaning of
         Section 3(2) of ERISA, it is a profit-sharing plan with individual
         accounts to which shall be credited the benefits each Participant
         becomes entitled to under this Plan. Since the amount credited to each
         Participant's account shall be immediately distributed, no interest
         shall be credited on accounts and the Plan will not have any assets to
         be held in trust. All benefits accrued under the Plan shall be vested
         and cannot be assigned or alienated. While the Plan technically covers
         all salaried employees on the Company's corporate payroll, only those
         persons who meet the requirements of Article 3 shall accrue any
         benefits.

                                      -17-
<PAGE>

                  (e) If you have any questions about this Plan, you should
         contact the Plan Administrator. If you have any questions about this
         statement or about your rights under ERISA, you should contact the
         nearest area office of the U.S. Labor-Management Services
         Administration, Department of Labor.

         This Plan is hereby adopted and approved effective December 1, 2001.

                               GENCORP INC.

                               By: /s/ Charles G. Salter
                                   -----------------------------------
                                       Charles G. Salter
                                       Vice President, Compensation and Benefits

                                      -18-

<PAGE>

                                                                      APPENDIX A

                         2001 GENCORP VOLUNTARY ENHANCED

                               RETIREMENT PROGRAM

                               SUMMARY DESCRIPTION

                              [NON-QUALIFIED PLAN]

                               September 27, 2001

<PAGE>

                         2001 GENCORP VOLUNTARY ENHANCED
                               RETIREMENT PROGRAM

                               SUMMARY DESCRIPTION
                              [NON-QUALIFIED PLAN]

                               September 27, 2001

                                    OVERVIEW

This Voluntary Enhanced Retirement Program ("VERP") is designed to provide an
opportunity for eligible employees to elect retirement with enhanced benefits.
The benefit improvements under the VERP, as applicable to GenCorp Executives,
include:

         (i)      An Enhanced Pension Benefit;

         (ii)     Salary Continuation until a designated Retirement Date;

         (iii)    Eligibility to participate in the retiree medical and life
                  insurance plans, according to the terms of those plans [which
                  exclude employees initially hired at GenCorp on or after
                  January 1, 1995; or initially hired at Aerojet on or after
                  January 1, 1997], and as those plans may be amended, modified
                  or terminated; and

         (iv)     Pre-retirement financial planning and outplacement support
                  services.

THESE ENHANCED BENEFITS ("ENHANCED BENEFITS") ARE CONTINGENT UPON:

         (i)      THE SUCCESSFUL COMPLETION OF THE DIVESTITURE OF AEROJET
                  ELECTRONIC INFORMATION SYSTEMS ("EIS") TO NORTHROP GRUMMAN
                  BEFORE DECEMBER 1, 2001; and

         (ii)     Receipt of a signed Application for Enhanced Retirement
                  Benefits ("Application"), which contains a Release of Claims,
                  by Jennifer Goolis, Director of Human Resources, NO LATER THAN
                  4:30 P.M. PST, ON MONDAY, NOVEMBER 12, 2001.

         The VERP is described generally below, and more details about the VERP
and its affect on retirement under other GenCorp benefit plans are provided in
the separate "Questions and Answers" section enclosed with this Summary
Description.

                                       2
<PAGE>

VERP ELIGIBILITY

         Subject to the limitations and exclusions herein, in order to retire
under the VERP, an eligible employee must be:

         (i)      Actively employed as of September 12, 2001, as a salaried
                  employee on the GenCorp Corporate Payroll; AND

         (ii)     As of December 1, 2001, have EITHER

                  (A)      Attained age 50 and completed at least 5 years of
                           Vesting Service, as determined under the GenCorp
                           Consolidated Pension Plan ("Pension Plan"); OR

                  (B)      Completed 25 years of Vesting Service, as determined
                           under the Pension Plan, regardless of age; OR

                  (C)      Have at least 5 years of Vesting Service AND attained
                           sufficient age and service in order to qualify for an
                           Early Retirement Benefit under the Pension Plan [at
                           least age 55, with 10 or more years of Vesting
                           Service] once the additional age and service credits
                           afforded under the VERP are included.

         AS STATED, THE VERP IS CONTINGENT UPON THE SUCCESSFUL DIVESTITURE OF
AEROJET EIS TO NORTHROP GRUMMAN; AND SHOULD THE DIVESTITURE NOT BE COMPLETED
BEFORE DECEMBER 1, 2001, THE VERP MAY BE CANCELLED AT THE COMPANY'S DISCRETION
AND, IN THAT EVENT, ANY APPLICATION, EVEN IF SIGNED AND RECEIVED, WILL BE VOID.
As a further condition for benefits under the VERP, an eligible employee must
agree to terminate employment on a date designated by GenCorp, at its discretion
("Retirement Date"). The designated Retirement Date will be set immediately at
the conclusion of the Salary Continuation period described herein, which Salary
Continuation period will commence no later than December 1, 2002.

         The following employees are NOT eligible to participate in the VERP:

         -        Employees who are NOT on the GenCorp Corporate Payroll as of
                  September 12, 2001, or who DO NOT REMAIN on the active
                  Corporate Payroll through December 1, 2001;

         -        Employees who have tendered their resignation to the Company;

         -        Employees who are on a leave of absence from active employment
                  pursuant to an employment termination agreement;

         -        Employees who transfer to or from the GenCorp Corporate
                  Payroll after September 12, 2001; and/or

                                       3
<PAGE>

         -        Full - time Presidents of GenCorp Business Units.

VERP BENEFITS

         Eligible GenCorp Executives who elect the VERP will receive two types
of pension benefit enhancements under a non-qualified plan called the "2001
Supplemental Retirement Plan for GenCorp Executives ("Supplemental Retirement
Plan"). Such GenCorp Executives will receive two types of pension benefit
enhancements - (i) an Enhanced Pension Benefit, payable either as monthly
benefits or in five (5) annual installments; and (ii) Salary Continuation for a
duration based on the eligible employee's position within the corporation, as
set forth herein.

1.       ENHANCED PENSION BENEFIT

         GenCorp Executives who elect the VERP will be paid a total pension
benefit from two sources:

         (i)      The current pension benefit under the tax-qualified Pension
                  Plan and, if applicable, the non-qualified Benefits
                  Restoration Plan (together, the "Normal Pension Benefit"),
                  payable on a monthly basis, at a time elected by the retiree,
                  consistent with the terms, limitations and reduction factors
                  set forth in the Pension Plan; and

         (ii)     An "enhanced" VERP pension benefit paid from the non-qualified
                  Supplemental Retirement Plan ("Enhanced Pension Benefit"),
                  payable either (A) as a life annuity commencing at the end of
                  Salary Continuation, as described herein, or (B) in five (5)
                  annual installments, with the first installment paid at the
                  end of Salary Continuation, with subsequent installments paid
                  on or about the same date in each of the four succeeding
                  years.

         A. AMOUNT OF ENHANCED PENSION BENEFIT.The Enhanced Pension Benefit will
be calculated by (1) adding a COMBINATION OF TEN (10) ADDITIONAL WHOLE YEARS OF
AGE AND SERVICE CREDITS [E.G., 5+5, 7+3, 9+1] to Vesting and Benefit Service and
Age under the Pension Plan, as of the designated Retirement Date, and (2)
subtracting the Normal Pension Benefit. Even though the Enhanced Pension Benefit
for GenCorp Executives will be paid from the non-qualified Supplemental
Retirement Plan, the Enhanced Pension Benefit WILL BE COMPUTED under the terms,
limitations, formulas, reduction factors and administrative practices of the
qualified Pension Plan.

         All combinations of whole years of age and service will be compared in
calculating the Enhanced Pension Benefit, and the combination that yields the
highest benefit will be used for the final Enhanced Pension Benefit computation.
THIS COMPUTATION, HOWEVER, WILL AT LEAST ALLOCATE THE COMBINATION OF WHOLE YEARS
OF AGE AND SERVICE WHICH MAKES THE EMPLOYEE ELIGIBLE FOR AN EARLY RETIREMENT
PENSION, AS DECEMBER 1, 2001. In order to

                                       4
<PAGE>

qualify for an Early Retirement Pension, the employee must have attained at
least age 55, with 10 or more years of service.

-        For example, an employee age 52 1/2, with 10 years of service, will
         have at least 3 years of age allocatEd in order to meet the age 55
         criteria, with the remaining 7 years allocated to age or service credit
         in a manner that maximizes the resulting benefit.

-        In other words, depending upon the employee's current age and service,
         not all combinations of age and service [E.G., 2+8, 1+9, 0+10] will be
         available.

         An Estimated Normal Pension Benefit, based on current age and service,
and an Estimated Enhanced Pension Benefit, based on the additional age and
service available under the VERP, are provided with the eligible employees'
Applications. The assumptions, interest rates, reduction factors and benefit
formulas used in these Estimates are incorporated into this Summary Description
by reference, and are considered plan provisions under the VERP. THESE ESTIMATES
ARE FOR COMPARISON PURPOSES ONLY, AND THE ACTUAL NORMAL PENSION BENEFIT AND
ENHANCED PENSION BENEFIT MAY BE DIFFERENT, BASED ON THE EMPLOYEE'S AGE, FINAL
EARNINGS AND ACCRUED SERVICE AS OF THE DESIGNATED RETIREMENT DATE.

                  An eligible employee can request Sam Gallardo in the Pension
Department to prepare an additional estimate of pension benefits that might
accrue (without any enhancement) if the employee were to remain employed with
the Company until a specified date in the future. ANY SUCH ADDITIONAL ESTIMATE
ALSO WOULD BE FOR COMPARISON PURPOSES ONLY, AND WOULD NOT IMPLY OR GUARANTEE
THAT THE ELIGIBLE EMPLOYEE WOULD REMAIN EMPLOYED WITH THE COMPANY FOR ANY
PERIOD.

         B. PAYMENT OF ENHANCED PENSION BENEFIT. The Enhanced Pension Benefit
may be paid in a different manner than the Normal Pension Benefit:

-        The Normal Pension Benefit will be paid on a monthly basis commencing
         on a date selected by the retiree, subject to the limitations of the
         Pension Plan. For example, payment of the Normal Pension Benefit cannot
         commence prior to age 55.

-        The Enhanced Pension Benefit will be paid, COMMENCING AT THE END OF
         SALARY CONTINUATION, in only one of two ways, with no further lump-sum
         payment eligibility: (1) as a monthly benefit, or (2) in five equal
         annual installments.

         1.       MONTHLY BENEFIT. If a monthly benefit is elected, an eligible
                  employee can receive his entire pension benefit (Pension Plan,
                  Benefits Restoration Plan and VERP) in the form of level
                  monthly payments over his lifetime. The same optional forms of
                  benefit (I.E., single life or joint & survivor annuities)
                  available under the Pension Plan can be elected for the entire
                  pension benefit.

                                       5
<PAGE>

                      If the eligible employee is under 55 (the earliest date
                  payments can begin under the Pension Plan and Benefits
                  Restoration Plan) when Salary Continuation ends, then more of
                  the total monthly benefit will come from the VERP until age
                  55. At age 55, the VERP portion would be reduced by the amount
                  payable from the Pension Plan and Benefits Restoration Plan,
                  and the eligible employee could decide the timing and form of
                  his payments from those plans.

                      For example, if the total benefit for someone age 52 is
                  $1,000 per month, the full amount would be payable from the
                  VERP until age 55. At that point, if $600 could begin to be
                  paid from the Pension Plan and Benefits Restoration Plan, the
                  VERP payment would drop to $400. The participant could then
                  elect to start (or defer) the payments from the other plans,
                  subject to the terms of those plans.

         2.       FIVE ANNUAL INSTALLMENTS. If an eligible employee elects to
                  have his Enhanced Pension Benefit paid in the form of five (5)
                  annual installments, the amount of the installments are
                  calculated as follows:

                  -        First, the lump-sum present value of the monthly
                           payments that would be payable from the VERP (I.E.,
                           the difference between the total monthly payments and
                           the portion payable from the Pension Plan and the
                           Benefits Restoration Plan, ASSUMING THAT THOSE
                           PAYMENTS WOULD START AT THE EARLIEST POSSIBLE DATE)
                           is determined. The lump sum present value is
                           determined using a 7.5% discount factor and the
                           standard mortality table used by the Company for
                           pension accounting purposes; and

                  -        Second, the lump-sum present value is amortized
                           (using the same 7.5% interest rate) into five equal
                           annual installments.

                  The first installment will be paid at the end of Salary
                  Continuation, with subsequent installments paid on or about
                  the same date in each of the four succeeding years.

                           Since the installment payments would only represent
                  the Enhanced Pension Benefit under the VERP, the eligible
                  employee would still have an independent decision about when
                  to actually start (or defer) his benefit payments from the
                  Pension Plan and Benefits Restoration Plan, subject to the
                  terms of those plans.

         The Enhanced Pension Benefit will be paid under the non-qualified
Supplemental Retirement Plan. Since it is a non-qualified plan, there is no
funded trust, and benefits paid thereunder are considered unsecured liabilities,
payable only from corporate assets. Unlike benefits paid from the qualified
Pension Plan, payment of the Enhanced Pension Benefit is not protected by the
federal Pension Benefit Guaranty Corporation.

                                       6
<PAGE>

         The Enhanced Pension Benefit will be subject to all applicable taxes,
and you may wish to consult a tax or financial advisor regarding the tax
implications and risk factors related to lump-sum benefits paid from
non-qualified plans.

2.       SALARY CONTINUATION

         In addition to the Enhanced Pension Benefit, GenCorp Executives who
elect to voluntarily retire under the VERP will be eligible for Salary
Continuation, according to the following schedule:

                   LEVEL                                 AMOUNT

         Corporate Officers under                   24 mos. Base Salary
         Spinoff-related Contracts             & Bonus @ 50% of Eligibility

         Other Corporate Officers                   18 mos. Base Salary

         Senior Management                          6 mos. Base Salary

         Salary Continuation, including any bonus, will be paid on a bi-weekly
basis, and will be considered compensation under the Pension Plan and the
GenCorp Benefits Restoration Plan, with age and service credit afforded through
the duration of Salary Continuation. Taxes will be withheld as required from
Salary Continuation payments.

         As with the Enhanced Pension Benefit, the entire amount of Salary
Continuation for each eligible GenCorp Executive will be paid under the
non-qualified Supplemental Retirement Plan. Upon completion of Salary
Continuation, eligible GenCorp Executives will be deemed to have reached their
designated Retirement Date. While on Salary Continuation, GenCorp Executives
will be employed on "Special Assignment". As employees, GenCorp Executives on
Special Assignment will be eligible to participate in all GenCorp pension and
welfare benefit plans, programs and perquisites, according to their terms, with
the exception of:

         (i)      Previously granted stock options will NOT continue to vest
                  while on Salary Continuation, nor will additional stock
                  options be granted. However, those stock options previously
                  granted and vested will be exercisable by the eligible
                  employees during Salary Continuation, and thereafter as
                  retirees.

         (ii)     Except for Corporate Officers under Spinoff-related Contracts,
                  eligible GenCorp Executives will NOT be eligible for annual
                  bonuses under the GenCorp Executive Incentive Compensation
                  Plan while on Salary Continuation. However, such employees
                  will be eligible for any bonus, including any pro-rata bonus,
                  attributable to service prior to commencement of Salary
                  Continuation, and specifically, any bonus for the 2001 and
                  2002 fiscal years, if earned. [An employee will not be deemed
                  to "earn" any additional bonus while on Special Assignment.]

                                       7
<PAGE>

         (iii)    Additional restricted shares under the 1999 Equity and
                  Incentive Compensation Plan will NOT be granted to eligible
                  GenCorp Executives on Salary Continuation. However, such
                  employees will be eligible to retain previously granted
                  restricted shares that have vested, including (A) those
                  restricted shares that vest in February 2002 as the result of
                  achieving performance objectives in 2001, and (B) for eligible
                  employees who work throughout the entire 2002 fiscal year,
                  those restricted shares that vest in February 2003 as a result
                  of achieving performance objectives in 2002.

         (iv)     VERP participants will not be eligible to participate in any
                  plans, programs or perquisites not listed in the response to
                  Question No. 46, herein, E.G., Sick Pay Plan.

3.       RETIREE MEDICAL

         Employees who elect to retire under the VERP will be eligible to
participate in the GenCorp Retiree Medical Plan, according to the terms of that
plan as it may be amended, modified or terminated. [Employees initially hired at
GenCorp on or after January 1, 1995, or initially hired at Aerojet on or after
January 1, 1997, are not eligible for retiree medical benefits under the Retiree
Medical Plan, or the VERP].

4.       PRE-RETIREMENT FINANCIAL COUNSELING & OUTPLACEMENT SUPPORT

         Pre-retirement financial counseling and outplacement support will be
provided to those employees who elect to retire under the VERP in a form and
duration to be determined by GenCorp, at its discretion.

APPLICATION

         In order to retire under the VERP, an eligible employee must sign an
Application, and return it - NO LATER THAN 4:30 P.M. PST ON MONDAY, NOVEMBER 12,
2001, TO:

                           Jennifer Goolis
                           Director, Human Resources
                           P.O. Box 537012
                           Sacramento, CA   95835-7012

                           Phone:   (916) 355-2167

         Enclosed with the Application will be Estimates of Normal Pension
Benefits and Enhanced Pension Benefits and a "Notice of Decision to Decline".

                                       8
<PAGE>

         Explanatory meetings will also be scheduled the week of September 24,
2001, to discuss the VERP with eligible employees, and answer any questions.

         If an employee is eligible, but chooses not to participate in the VERP,
the employee must complete the "Notice of Decision to Decline" and return it to
Jennifer Goolis by November 12, 2001.

                                       9
<PAGE>

                         2001 GENCORP VOLUNTARY ENHANCED
                               RETIREMENT PROGRAM

                              QUESTIONS AND ANSWERS
                              [NON-QUALIFIED PLAN]
                               September 27, 2001

ELIGIBILITY

1.       Who is eligible to retire under the VERP?

         Any active salaried employee on the GenCorp Corporate Payroll as of
         September 12, 2001, WHO HAS, AS OF DECEMBER 1, 2001, EITHER:

                  (A)      Attained age 50 and completed at least 5 years of
                           Vesting Service (as determined under the Pension
                           Plan); OR

                  (B)      Completed 25 years of Vesting Service (as determined
                           under the Pension Plan), regardless of age; OR --

                  (C)      Has at least 5 years of Vesting Service AND attained
                           sufficient age and service in order to qualify for an
                           Early Retirement Benefit under the Pension Plan [at
                           least age 55, with 10 or more years of Vesting
                           Service], once the additional age and service credits
                           afforded under the VERP are included.

         An employee who otherwise meets these criteria, but who has tendered
         his resignation to the Company, or who is on a leave of absence from
         active employment pursuant to an employment termination agreement, or
         who transfers onto the Corporate payroll after September 12, 2001 or
         transfers from the Corporate payroll before November 12, 2001, or who
         is a full-time President of a GenCorp Business Unit, is not eligible to
         retire under the VERP.

2.       If I am an employee of Aerojet, AFC or GDX, may I retire under the
         VERP?

         No. The VERP is only available to active salaried employees on the
         GenCorp Corporate Payroll. The purpose of the VERP is to reduce costs
         at the Corporate Headquarters, in order to facilitate a restructuring.
         The current business plans are to grow Aerojet, AFC and GDX, and make
         them more autonomous, not reduce their size.

                                       10
<PAGE>

3.       If I will not satisfy the eligibility requirements until after December
         1, 2001, may I retire under the VERP?

         No. You must satisfy the eligibility requirements as of December 1,
         2001.

4.       If I decide to retire under the VERP, what do I have to do?

         You must sign an Application and return it to Jennifer Goolis, Director
         of Human Resources, SO THAT IT IS RECEIVED NO LATER THAN 4:30 P.M. PST
         ON MONDAY, NOVEMBER 12, 2001. FAXED OR E-MAIL COPIES, OR APPLICATIONS
         POST-MARKED BY NOVEMBER 12, 2001, BUT NOT RECEIVED UNTIL THEREAFTER,
         WILL NOT BE ACCEPTED.

5.       Can I sign and deliver the Application to the Company prior to November
         12, 2001?

         Yes.

6.       Can I withdraw my decision to retire under the VERP after I have
         already elected to participate?

         Yes. Your decision will not be considered final until November 12,
         2001, at 4:31 p.m. PST. Thereafter, you still have seven (7) days under
         the law (until November 19, 2001, at 4:30 p.m. PST) to revoke your
         Application. You may not, however, resubmit your Application after 4:30
         p.m. PST, on November 12, 2001.

7.       Do I have to sign the Release of Claims in order to retire under the
         VERP and receive the Enhanced Pension Benefits?

         Yes. A Release of Claims is included within the Application, and is a
         condition to VERP Benefits. You also must execute the Contract
         Modifications described in Paragraph 8(b) of the Application.

8.       If I decide to retire under the VERP, will I be eligible to receive
         severance or separation pay?

         No. If you decide to retire under the VERP, the termination of your
         employment will be voluntary, and you will NOT be eligible to receive
         separation pay under any other plan, employment agreement or
         separation/severance agreement, including the GenCorp Involuntary
         Separation Pay Plan. However, if you are party to a Severance Agreement
         related to a change-in-control, and that Severance Agreement is
         triggered prior to your commencement of Salary Continuation, the
         benefits under the Severance Agreement will be COORDINATED with
         benefits under

                                       11
<PAGE>

         the VERP to provide the highest benefit to the employee, without
         providing any duplicate benefit. For example, if the Severance
         Agreement offers two years of Salary Continuation upon a
         change-in-control, AND THE CHANGE-IN-CONTROL IS TRIGGERED BEFORE THE
         START OF SALARY CONTINUATION UNDER THE VERP, but the VERP provides 18
         months of Salary Continuation, the employee will be eligible for the
         two years of Salary Continuation, plus the other VERP benefits.

9.       If I decide to retire under the VERP, but the divestiture of Aerojet
         Electronic Information Systems to Northrop Grumman does not occur
         before December 1, 2001, will I still be eligible for VERP benefits?

         No. The VERP is contingent upon the successful and timely completion of
         the Aerojet EIS divestiture to Northrop Grumman. If the divestiture
         does not occur prior to December 1, 2001, the VERP may be cancelled at
         the Company's discretion and, in that event, any Application, even if
         signed and received by GenCorp, will be void.

10.      If I decide to retire under the VERP, but the Divestiture of Aerojet
         EIS does not occur, will submitting my Application for VERP benefits
         affect my future employment with GenCorp?

         No. Any future employment decisions, including those related to
         promotion, merit increases or termination, will not be influenced, in
         any way, by your decision to apply for VERP benefits.

11.      If I decide NOT to retire under the VERP now, but I later decide to
         retire, will I then be able to receive the Enhanced Pension Benefits
         under the VERP?

         No.

12.      If I decide NOT to retire under the VERP, and I later lose my job due
         to a restructuring, will I then be able to elect the Enhanced Benefits
         under the VERP?

         No. Anyone who wishes to retire under the VERP must deliver the signed
         Application to Jennifer Goolis no later than 4:30 p.m. PST on Monday,
         November 12, 2001.

13.      If I decide NOT to retire under the VERP and I later lose my job as a
         result of a restructuring, what amount of separation pay will I be
         eligible to receive?

                                       12
<PAGE>

         If you are an eligible employee whose position is eliminated as a
         result of restructuring, you may be eligible for separation pay and
         benefits under the GenCorp Involuntary Separation Pay ("ISP") Plan. You
         may also be eligible for separation benefits under an employment
         agreement. The separation pay under the ISP Plan equals one week of
         base salary for each year or partial year of service, plus four weeks
         base salary, and up to six (6) months medical and life insurance
         continuation in exchange for a release of claims. Any separation pay
         under any employment or severance agreement will be governed by the
         terms of the agreement, and you should consult the agreement for
         details. Benefits under any employment or severance agreement (other
         than a Severance Agreement relating to change-in-control WHICH IS
         TRIGGERED PRIOR TO SALARY CONTINUATION) are forfeited if you elect VERP
         Benefits.

RETIREMENT

14.      If I decide to retire under the VERP, when will my employment end?

         GenCorp will designate your Retirement Date, which will be at the
         conclusion of Salary Continuation. GenCorp will also designate the date
         you are placed on Special Assignment, at which point Salary
         Continuation commences. You will not be placed on Special Assignment
         earlier than December 1, 2001, or later than December 1, 2002.

15.      What happens to my VERP benefits if I elect to participate, but die
         before my Retirement Date?

         If you should die before your Retirement Date, your unpaid Enhanced
         Pension Benefit and remaining Salary Continuation will be provided to
         your surviving spouse, who will also receive the spousal benefit under
         your Normal Pension Benefit, and be eligible participate in the GenCorp
         Retiree Medical Plan [if you were otherwise eligible to participate],
         as if you had already retired.

16.      Why am I not receiving all other retirement application forms, such as
         pension benefit application forms, at this time?

         When your Retirement Date is designated, and you actually leave the
         Company, you will receive several forms, such as the Pension and
         Savings Plan election forms, and COBRA notices under the medical and
         dental plans. Those forms are not being provided at this time because
         you do not really need them until you leave. If you would like to see
         these forms, you may request copies from Jennifer Goolis (916)
         355-2167, or Sam Gallardo (916) 355-6550.

                                       13
<PAGE>

17.      If I elect to retire under the VERP, can I later apply for
         re-employment with GenCorp, Aerojet, AFC or GDX?

         No. If you elect to retire under the VERP, you must waive any claim to
         re-employment with GenCorp, or any affiliated company. GenCorp or any
         affiliate may, however, offer you re-employment, at their sole
         discretion.

18.      If I elect to retire under the VERP, and I become employed as a
         consultant or with a firm that can provide services to GenCorp, am I
         prohibited from contacting GenCorp about a potential business
         relationship?

         No. Under these circumstances, any services you would perform for
         GenCorp, or any affiliate, would not be as an employee. You are
         prohibited, however, from recruiting or hiring any employee away from
         GenCorp for one (1) year after your designated Retirement Date.

19.      If I retire under the VERP, will I be eligible to receive unemployment
         compensation benefits?

         You may be eligible for such benefits if you satisfy the normal
         requirements imposed by law, although your unemployment benefits, if
         any, may be offset and reduced by amounts you receive under the VERP.
         GenCorp is not in a position to give you advice regarding your rights
         to unemployment compensation benefits. For detailed and reliable
         information, you should contact your local unemployment compensation
         office. The toll-free number for the California Employment Development
         Department is: 1-800-300-5616.

ENHANCED PENSION BENEFIT

20.      If I elect to retire under the VERP, how is my pension benefit
         affected?

         GenCorp Executives who elect the VERP will be paid a total pension
         benefit from two sources:

                  (i)      The current pension benefit under the tax-qualified
                           Pension Plan and, if applicable, the non-qualified
                           Benefits Restoration Plan (together, the "Normal
                           Pension Benefit"), payable on a monthly basis, at a
                           time elected by the retiree, consistent with the
                           terms, limitations and reduction factors set forth in
                           the Pension Plan; and

                                       14
<PAGE>

                  (ii)     An "enhanced" VERP pension benefit paid from the
                           non-qualified Supplemental Retirement Plan for
                           GenCorp Executives ("Enhanced Pension Benefit"),
                           payable either (A) as a life annuity commencing at
                           the end of Salary Continuation, as described herein,
                           or (B) in five (5) annual installments, with the
                           first installment paid at the end of Salary
                           Continuation, and subsequent installments paid on or
                           about the same date in each of the four succeeding
                           years.

21.      How is my Enhanced Pension Benefit calculated?

         The Enhanced Pension Benefit will be calculated by (1) adding a
         COMBINATION OF TEN (10) ADDITIONAL WHOLE YEARS OF AGE AND SERVICE
         CREDITS [E.G., 5+5, 7+3, 9+1] to Vesting and Benefit Service and Age
         under the Pension Plan, as of the designated Retirement Date, and (2)
         subtracting the Normal Pension Benefit. Even though the Enhanced
         Pension Benefit for GenCorp Executives will be paid from the
         non-qualified Supplemental Retirement Plan, the Enhanced Pension
         Benefit WILL BE COMPUTED under the terms, limitations, formulas,
         reduction factors and administrative practices of the qualified Pension
         Plan.

                  All combinations of whole years of age and service will be
         compared in calculating the Enhanced Pension Benefit, and the
         combination that yields the highest benefit will be used for the final
         Enhanced Pension Benefit computation. THIS COMPUTATION, HOWEVER, WILL
         AT LEAST ALLOCATE THE COMBINATION OF WHOLE YEARS OF AGE AND SERVICE
         WHICH MAKES THE EMPLOYEE ELIGIBLE FOR AN EARLY RETIREMENT PENSION, AS
         DECEMBER 1, 2001. In order to qualify for an Early Retirement Pension,
         the employee must have attained at least age 55, with 10 or more years
         of service.

         -        For example, an employee age 52 1/2, with 10 years of service,
                  will have at least 3 years of age allocated in order to meet
                  the age 55 criteria, with the remaining 7 years allocated to
                  age or service credit in a manner that maximizes the resulting
                  benefit.

         -        In other words, depending upon the employee's current age and
                  service, not all combinations of age and service [E.G., 2+8,
                  1+9, 0+10] will be available.

                  An Estimated Normal Pension Benefit, based on current age and
         service, and an Estimated Enhanced Pension Benefit, based on the
         additional age and service available under the VERP, are provided with
         the eligible employees' Applications. The assumptions, interest rates,
         reduction factors and benefit formulas used in these Estimates are
         incorporated into this Summary Description by reference, and are
         considered plan provisions under the VERP. THESE ESTIMATES ARE FOR
         COMPARISON PURPOSES ONLY, AND THE ACTUAL NORMAL PENSION BENEFIT AND
         ENHANCED PENSION BENEFIT MAY BE SLIGHTLY DIFFERENT, BASED ON THE
         EMPLOYEE'S AGE, FINAL EARNINGS AND ACCRUED SERVICE AS OF THE DESIGNATED
         RETIREMENT DATE.

                                       15
<PAGE>

                  An eligible employee can request Sam Gallardo in the Pension
         Department to prepare an additional estimate of pension benefits that
         might accrue (without any enhancement) if the employee were to remain
         employed with the Company until a specified date in the future. ANY
         SUCH ADDITIONAL ESTIMATE ALSO WOULD BE FOR COMPARISON PURPOSES ONLY,
         AND WOULD NOT IMPLY OR GUARANTEE THAT THE ELIGIBLE EMPLOYEE WOULD
         REMAIN EMPLOYED WITH THE COMPANY FOR ANY PERIOD.

22.      How is my Enhanced Pension Benefit paid?

         The Enhanced Pension Benefit may be paid in a different manner than the
         Normal Pension Benefit:

         -        The Normal Pension Benefit will be paid on a monthly basis
                  commencing on a date selected by the retiree, subject to the
                  limitations of the Pension Plan. For example, payment of the
                  Normal Pension Benefit cannot commence prior to age 55.

         -        The Enhanced Pension Benefit will be paid, COMMENCING AT THE
                  END OF SALARY CONTINUATION, in only one of two ways, with no
                  further lump-sum payment eligibility: (1) as a monthly
                  benefit, or (2) in five equal annual installments.

                  1. MONTHLY BENEFIT. If a monthly benefit is elected, an
                  eligible employee can receive his entire pension benefit
                  (Pension Plan, Benefits Restoration Plan and VERP) in the form
                  of level monthly payments over his lifetime. The same optional
                  forms of benefit (I.E., single life or joint & survivor
                  annuities) available under the Pension Plan can be elected for
                  the entire pension benefit.

                       If the eligible employee is under 55 (the earliest date
                  payments can begin under the Pension Plan and Benefits
                  Restoration Plan) when Salary Continuation ends, then more of
                  the total monthly benefit will come from the VERP until age
                  55. At age 55, the VERP portion would be reduced by the amount
                  payable from the Pension Plan and Benefits Restoration Plan,
                  and the eligible employee could decide the timing and form of
                  his payments from those plans.

                  For example, if the total benefit for someone age 52 is $1,000
                  per month, the full amount would be payable from the VERP
                  until age 55. At that point, if $600 could begin to be paid
                  from the Pension Plan and Benefits Restoration Plan, the VERP
                  payment would drop to $400. The participant could then elect
                  to start (or defer) the payments from the other plans, subject
                  to the terms of those plans.

                                       16
<PAGE>

                  2. FIVE ANNUAL INSTALLMENTS. If an eligible employee elects to
                  have his Enhanced Pension Benefit paid in the form of five (5)
                  annual installments, the amount of the installments are
                  calculated as follows:

                  -        First, the lump-sum present value of the monthly
                           payments that would be payable from the VERP (I.E.,
                           the difference between the total monthly payments and
                           the portion payable from the Pension Plan and the
                           Benefits Restoration Plan, ASSUMING THAT THOSE
                           PAYMENTS WOULD START AT THE EARLIEST POSSIBLE DATE)
                           is determined. The lump sum present value is
                           determined using a 7.5% discount factor and the
                           standard mortality table used by the Company for
                           pension accounting purposes; and

                  -        Second, the lump-sum present value is amortized,
                           using the same 7.5% interest rate) into five equal
                           annual installments

                  The first installment will be paid at the end of Salary
                  Continuation, with subsequent installments paid on or about
                  the same date in each of the four succeeding years.

                           Since the installment payments would only represent
                  the Enhanced Pension Benefit under the VERP, the eligible
                  employee would still have an independent decision about when
                  to actually start (or defer) his benefit payments from the
                  Pension Plan and Benefits Restoration Plan, subject to the
                  terms of those plans.

         The Enhanced Pension Benefit will be paid under the non-qualified
         Supplemental Retirement Plan. Since it is a non-qualified plan, there
         is no funded trust, and benefits paid thereunder are considered
         unsecured liabilities, payable only from corporate assets. Unlike
         benefits paid from the qualified Pension Plan, payment of the Enhanced
         Pension Benefit is not protected by the federal Pension Benefit
         Guaranty Corporation.

         The Enhanced Pension Benefit will be subject to all applicable taxes,
         and you may wish to consult a tax or financial advisor regarding the
         tax implications and risk factors related to lump-sum benefits paid
         from non-qualified plans.

23.      Are partial years of age and service allocated in the calculation of my
         Enhanced Pension Benefit under the VERP? For example, if I am age 52
         1/2, can 2 1/2 years be allocated to my age to reach the age 55 Early
         Retirement level, with the remaining 7 1/2 years allocated to my
         service?

         No. Only whole years are allocated under the VERP. Under the example, 3
         whole years are allocated to reach the age 55 level. Of course, you
         will still receive credit for all 3 years in the computation of the
         Enhanced Pension Benefit because you will

                                       17
<PAGE>

         be CONSIDERED age 55 1/2 under the Pension Plan, which does recognize
         months of age and service in the benefit formulas.

24.      What are the "lump-sum present values" used to calculate my Enhanced
         Pension Benefit?

         The lump-sum present value, sometimes referred to as the "net present
         value", is the amount of money, appropriately invested on December 1,
         2001, which will provide the expected stream of monthly VERP benefit
         payments as described in Q&A 22.

25.      How is my "expected stream of monthly payments" determined?

         Pension benefits are normally payable over your lifetime. For purposes
         of computing a lump-sum present value, your expected lifetime is
         determined according to the standard mortality table used by the
         Company for pension accounting purposes.

                  Also, if you are not yet age 55 (the earliest age that benefit
         payments can commence under the Pension Plan and Benefits Restoration
         Plan), the higher payments you receive under the VERP prior to age 55
         are taken into account.

26.      What interest rate is used to compute the lump-sum present value?

         The interest rate used in these Estimates was 7.5%, same rate currently
         used by the Company for pension accounting purposes. You are encouraged
         to consult a financial planner or tax advisor regarding the best way to
         achieve your retirement goals.

27.      How will the Enhanced Pension Benefit be taxed.

         Like any pension benefit, it will be taxed as ordinary income.

28.      May I defer commencement of payment of the Enhanced Pension Benefit to
         a later date for tax considerations?

         No. Regardless of which payment option you select, payments will
         commence at the end of Salary Continuation.

                                       18
<PAGE>

29.      It is stated that my actual Enhanced Pension Benefit may be different
         than the Estimate. How different?

         We do not know who will voluntarily elect the VERP at this time;
         therefore, all Estimates are calculated as of December 1, 2001.
         Assuming an individual elects the VERP, and is retained until March 1,
         2002, in order to transition his or her duties, the Estimates do not
         include accrued age and service credits for this 3-month period. Thus,
         a recalculation of the Enhanced Pension Benefit will be conducted once
         the individual starts Salary Continuation.

30.      Are the additional age and service credits under the VERP added to my
         Normal Pension Benefit?

         No. The additional age and service credits are used in the calculation
         of the Enhanced Pension Benefit only.

31.      What Normal Pension Benefit will I receive, and what are my benefit
         options?

         If you are age 62 or over on your designated Retirement Date (at the
         conclusion of Salary Continuation), you are eligible for an unreduced
         Normal Pension Benefit, based on your ACTUAL years of service,
         including the period of Salary Continuation. As a result, you may begin
         an unreduced monthly Normal Pension Benefit at that time.

                  If you are over age 55, but not yet 62, with at least 10 years
         of service on your designated Retirement Date, you are eligible for an
         Early Retirement Pension Benefit, based on your ACTUAL years of
         service. As a result, you may begin to receive a REDUCED Early
         Retirement Pension at that time, or defer payment to a later date and
         be subject to a smaller reduction factor, or no reduction at age 62.

                  If you are not age 55, or do not have at least 30 years of
         service on your designated Retirement Date, you are eligible for a
         "deferred vested pension benefit", based on your ACTUAL years of
         service. Under a "deferred vested pension", you are not eligible for a
         monthly benefit until you reach age 55, and the monthly benefit
         reduction is greater than that under an Early Retirement Pension.
         Again, you may defer payment to a later date, and be subject to less of
         a reduction, or no reduction at age 65.

32.      What is the difference between an Early Retirement Pension Benefit and
         a Deferred Vested Pension Benefit?

         As noted, the reduction factor for a Deferred Vested Pension Benefit is
         larger than the reduction factor for an Early Retirement Pension
         Benefit. In other words, an

                                       19
<PAGE>

         Early Retirement Pension taken at age 55 is larger than a Deferred
         Vested Pension Benefit taken at age 55.

                  For example, assume that you are eligible for a $1000 monthly
         pension benefit commencing AT AGE 65. If you terminate employment prior
         to age 55, you will be eligible for a "deferred vested pension benefit"
         when you reach age 55. If you decide to commence your pension at age
         55, the $1000 monthly pension benefit will be "actuarially reduced" to
         a monthly pension benefit of approximately $390. [This reduction
         accounts for the fact that your pension will be paid over a much longer
         period, starting at age 55, rather than age 65.] However, if you are
         age 55 with at least 10 years of Vesting Service when you terminate
         employment, you would qualify for an Early Retirement Pension, and
         instead of the actuarial reduction, the $1000 monthly pension benefit
         would be reduced at a rate of only 4/10 of 1 percent for each month you
         receive benefits prior to age 62. Thus, if you decide to start
         receiving your Early Retirement Pension at age 55, your monthly benefit
         would be $666, rather than $390. In addition, you would receive the
         full $1000 at age 62 under an Early Retirement Pension, rather than
         having to wait until age 65 to receive the $1000 benefit as a Deferred
         Vested Benefit.

33.      Are these reduction factors applicable only to VERP participants?

         No. That is the way the Pension Plan has always been written. In fact,
         for purposes of the VERP program, since the value of your Normal
         Pension Benefit is deducted from your Enhanced Pension Benefit, the
         smaller the deduction, the greater the Enhanced Pension Benefit. So, if
         your are eligible for only a Deferred Vested Pension, rather than an
         Early Retirement Pension, under the Pension Plan, the difference will
         be reflected as an increase in your Enhanced Pension Benefit.

34.      If I elect to retire under the VERP, must I start my monthly Normal
         Pension Benefit immediately?

         No. Your decision to commence your Normal Pension Benefit may be
         delayed under the terms of the Pension Plan, and based upon your own
         financial considerations.

35.      What are the advantages of starting my monthly Normal Pension Benefit
         immediately at my designated Retirement Date, compared to delaying the
         start of my pension until some later date?

         As noted in Q & A 34 & 35, you may not begin a monthly Normal Pension
         Benefit until age 55 unless you have 30 years of service.. At age 55,
         any deferral of either a Deferred Vested Pension or an Early Retirement
         Pension (at least until age 62)

                                       20
<PAGE>

         will result in a greater monthly benefit. However, you are encouraged
         to consult a financial planner or tax advisor regarding the best way to
         achieve your retirement goals.

36.      If I elect to retire under the VERP, and defer my Normal Pension
         Benefit to a later date, will I still be eligible for retiree medical?

         Yes. You will still be immediately eligible to enroll in the Retiree
         Medical Plan [if you otherwise meet the eligibility criteria], on your
         designated Retirement Date.

37.      Are employees eligible for a Deferred Vested Pension still eligible for
         retiree medical?

         Yes. The Retiree Medical Plan has been amended to allow employees
         currently eligible for a Deferred Vested Pension Benefit under the
         Pension Plan but who elect to participate in the VERP to be eligible
         for retiree medical benefits, if they otherwise meet the Plan
         eligibility criteria, and subject to all terms, conditions and
         limitations in the Retiree Medical Plan.

38.      Must I complete a separate Pension Application in order to begin
         receiving my monthly Normal Pension Benefit?

         Yes. At the time you choose to commence your monthly Normal Pension
         Benefit, you must submit a separate application to the Pension
         Department. You must only complete the VERP Application to receive the
         Enhanced Pension Benefit and Salary Continuation.

39.      What portions of Enhanced Pension Benefit will be paid from the
         non-qualified Supplemental Retirement Plan and what does that mean?

         The ENTIRE Enhanced Pension Benefit available under the VERP will be
         paid from the non-qualified Supplemental Retirement Plan. That amount
         is stated in the Estimate of Enhanced Pension Benefit attached to your
         Application. AS STATED, THIS ESTIMATE IS FOR COMPARISON PURPOSES ONLY.

                  What it means to have a benefit paid from a non-qualified plan
         is that the benefits are not guaranteed by a funded trust, or the
         federal Pension Benefit Guaranty Corporation. They are paid from
         general assets of the corporation, and are unsecured liabilities of the
         corporation.

                                       21
<PAGE>

40.      How is pension service under the Aerojet Pension Plan, if any, handled
         under the VERP?

         GenCorp employees who formerly participated in the Aerojet-General
         Corporation Consolidated Pension Plan have their age and service
         thereunder recognized under the GenCorp Pension Plan and also for the
         purposes of the VERP. However, part of their monthly Normal Pension
         Benefit will be paid from the Aerojet Pension Plan.

41.      Will I be able to "rollover" my Enhanced Pension Benefit into a
         qualified plan or IRA in order to gain more favorable tax treatment?

         No. Your Enhanced Pension Benefit is being paid from the non-qualified,
         Supplemental Retirement Plan, and accordingly, is not eligible for
         rollover treatment.

SALARY CONTINUATION

42.      What is the amount of my Salary Continuation?

         The amount of your Salary Continuation is dependent on your position
         within the corporation:

                    LEVEL                                   AMOUNT
         Corporate Officers under                      24 mos. Base Salary
         Spinoff-related Contracts                 & Bonus @ 50% of Eligibility

         Other Corporate Officers                      18 mos. Base Salary

         Senior Management                              6 mos. Base Salary

         The Salary Continuation will be paid on a bi-weekly basis, subject to
         normal taxes, contributions and deductions. These amounts will be
         considered compensation under the Pension Plan and the Benefits
         Restoration Plan, with age and service credit afforded for the duration
         of Salary Continuation.

43.      May I postpone the payment of my Salary Continuation?

         No. Salary Continuation commences immediately upon being placed on
         Special Assignment.

                                       22
<PAGE>

44.      Will taxes be withheld from Salary Continuation?

         Yes. Salary Continuation is ordinary income, subject to applicable
         federal, state or local taxes. Normal tax withholding rules will be
         followed.

45.      While I am on Salary Continuation, as an employee on "Special
         Assignment," may I work for another firm, or work as an independent
         consultant?

         While on Special Assignment, you will not be prohibited from working
         elsewhere, either as an employee, or as an independent consultant.
         However, any benefits provided with another employer may be coordinated
         with the GenCorp plans, according to the plan terms.

46.      While I am on Salary Continuation, as an employee on "Special
         Assignment," what are the GenCorp employee benefits still available to
         me?

         As an employee on Special Assignment, you will still be eligible to
         participate in all GenCorp pension and welfare benefit plans, programs
         and perquisites, according to their terms, except for the following:

                  -        The GenCorp Involuntary Separation Pay Program

                  -        The GenCorp Executive Incentive Compensation Plan
                           [Annual Bonus]. However, Corporate Officers under
                           Spinoff -related Contracts [who will be paid a bonus
                           at 50% of their eligibility level while on Salary
                           Continuation] and bonus eligible employees who elect
                           the VERP will remain bonus eligible until the
                           commencement of Special Assignment, particularly for
                           the 2001and 2002 fiscal years, if earned, all of
                           which will be payable at the time all other annual
                           bonuses are paid.

                  -        Additional stock option grants, or additional vesting
                           of prior stock option grants. However, stock options
                           will continue to vest until the commencement of
                           Special Assignment, and vested options will remain
                           exercisable for the duration of the option, since the
                           employee will reach retiree status according to the
                           terms of the Option Plans.

                  -        Additional restricted share grants under the 1999
                           Equity and Incentive Compensation Plan. However,
                           eligible employees will retain previously granted
                           restricted shares that have vested, including (A)
                           those restricted shares that vest in February 2002 as
                           the result of achieving performance objectives in
                           2001, and (B) for eligible employees who work
                           throughout the entire 2002 fiscal year, those

                                       23
<PAGE>

                           restricted shares that vest in February 2003 as a
                           result of achieving performance objectives in 2002.

         In other words, as an employee on Special Assignment, you will remain
         eligible to participate in the same pension and welfare benefit plans,
         programs and perquisites, according to their terms, and as those terms
         may be amended, modified or terminated, including the following:

                  -        GenCorp Consolidated Pension Plan

                  -        Aerojet-General Corporation Consolidated Pension Plan
                           (applicable to GenCorp employees who previously were
                           Aerojet employees)

                  -        GenCorp Retirement Savings Plan

                  -        GenCorp Benefits Restoration Plan

                  -        GenCorp Medical Plan

                  -        GenCorp Dental Plan

                  -        GenCorp Flexible Benefits Plan

                  -        Employee Assistance Program

                  -        Long-Term Disability Plan

                  -        Accidental Death and Dismemberment Insurance

                  -        Group Universal Life Insurance

                  -        Vacation Program

                  -        Holiday Pay

                  -        Deferred Bonus Plan

                  -        Company Automobile Reimbursement

                  -        Financial Planning Assistance (AYCO)

                  -        Annual Executive Physical Program

                                       24
<PAGE>

MEDICAL BENEFITS

47.      How will my medical coverage be handled under the VERP?

         If you were hired by GenCorp prior to January 1, 1995, or hired by
         Aerojet prior to January 1, 1997, you may be eligible to participate in
         the GenCorp Retiree Medical Plan, as described herein. If eligible,
         your participation will begin upon termination of your active medical
         coverage.

         AGE 65 AND OVER

         Retirees age 65 and over will not be eligible for coverage under the
         Retiree Medical Plan IF THEY LIVE IN AN AREA SERVED BY MEDICARE RISK
         HMO'S. This includes the Sacramento area. Spouses and dependents of
         these retirees will remain eligible for coverage under the Retiree
         Medical Plan until they reach age 65, or otherwise become ineligible
         under the Plan terms. All other eligible retirees age 65 and over may
         elect coverage under the Retiree Medical Plan. If a retiree relocates
         to an area not served by Medicare Risk HMO's, he or she will then
         become eligible for coverage under the Retiree Medical Plan, according
         to its terms.

         UNDER AGE 65

         If you are eligible and live in California, you may select benefits
         under the Retiree Medical Plan, or one of the HMO's offered to retirees
         in the geographical area. The HMO's currently offered are Kaiser and
         PacifiCare. If you live outside of California, you are not eligible to
         enroll in an HMO, but may elect benefits under the Retiree Medial Plan.

                  Benefits under the Retiree Medical Plan are similar to the
         medical benefits offered to active employees of GenCorp, but they are
         different in some ways. For example, the deductibles and co-payments
         are different, there are currently no contributions for retirees who
         are under age 65, and there is a different third-party claims
         processor.

         COBRA

         Lastly, VERP eligible retirees may elect to continue to participate,
         under COBRA for up to 18 months, in the active medical coverage in
         which they are enrolled at the time of employment termination. The
         current COBRA rates for medical coverage are:

                                       25
<PAGE>

          COVERAGE          EMPLOYEE ONLY     EMPLOYEE + 1        FAMILY
          --------          -------------     ------------        ------
         GenCorp Low            $218.44          $425.93          $567.80
         GenCorp Middle         $262.30          $511.36          $681.87
         GenCorp High           $319.26          $622.46          $830.03
         Kaiser Northern        $173.10          $346.21          $489.89
         PacifiCare             $185.06          $433.09          $619.87
         Healthnet              $254.36          $451.67          $649.69

         Benefit levels and COBRA rates may be different for VERP eligible
         employees at the Lawrence, Massachusetts facility.

48.      Does the Company have the right to amend, modify or terminate the
         Retiree Medical Plan, and therefore impose contributions, or change
         benefit levels?

         Yes. Your participation in the GenCorp Retiree Medical Plan will be
         subject to all of its terms, including the Company's right to amend,
         modify or terminate the Plan. Retiree contributions are based on the
         cost caps in the Plan, and the aggregate expense of medical benefits
         provided. If medical expenses under the Plan continue to rise, pre-65
         retiree contributions may be required for 2002. Eligible retirees over
         age 65 are already paying contributions.

49.      Does the GenCorp Retiree Medical Plan include any dental benefits?

         If you enroll in the GenCorp Retiree Medical Plan, coverage is provided
         only for the following:

                  -        Charges made necessary by an injury to natural teeth
                           as the result of an accident occurring while the
                           participant is covered by the Plan, but only to the
                           extent such charges are not considered an eligible
                           expense under any other plan sponsored by GenCorp;

                  -        Charges made for the surgical correction of
                           temporomandibular joint dysfunction pain syndrome;

         If you enroll in an HMO, you must check the benefit descriptions to
         determine whether any dental coverage is provided.

         At the time of employment termination on your designated Retirement
         Date, eligible retirees will also be offered the opportunity to enroll
         in the dental plan for Aerojet retirees. It is a scheduled benefit
         plan, paid entirely by retiree contributions. Current monthly
         contribution rates are:

                                       26
<PAGE>

                             COVERAGE                     MONTHLY RATE
                             --------                     ------------
                             Retiree                         $27.92
                             Retiree + 1                     $50.22
                             Family                          $71.20

         Lastly, eligible retirees will have the option to continue to
         participate, under COBRA or up to 18 months, in the dental coverage in
         which they are enrolled at the time of employment termination. If COBRA
         coverage is elected, any other retiree dental coverage would begin
         after COBRA coverage ends. The current monthly COBRA rates for dental
         coverage are:

             COVERAGE        EMPLOYEE ONLY      EMPLOYEE + 1       FAMILY
             --------        -------------      ------------       ------
           Delta Dental         $38.52            $65.48          $100.09
           Dental PMI           $24.49            $42.45          $63.65

         Benefit levels and COBRA rates may be different for VERP eligible
         employees at the Lawrence, Massachusetts facility.

50.      Are spouses and dependents eligible for coverage under the GenCorp
         Retiree Medical Plan and the Aerojet Retiree Dental Plan?

         To be eligible for coverage under the retiree plans, a spouse or
         dependent must be an eligible dependents at the time of termination of
         employment on the designated Retirement Date. These dependents will
         remain eligible under the same terms as the active plans. In the event
         of the retiree's death, any surviving spouse or other eligible
         dependent will remain eligible in accordance with the terms of the
         Plans. In order for a surviving spouse to be eligible, the retiree and
         spouse must have been married for at least one year, and married prior
         to the retiree's 65th birthday.

OTHER BENEFITS

51.      What happens to my other employee benefits when I reach my designated
         Retirement Date?

         The following is a brief summary of how active employee benefits are
         affected by employment termination under the VERP. [Benefit levels and
         the effects of employment termination may be different for eligible
         employees at the Lawrence, Massachusetts facility].

                                       27
<PAGE>

<TABLE>
<S>                                     <C>
         LIFE INSURANCE                 Your life insurance benefit continues after retirement at no cost to you,
                                        but the amount is reduced to $3,000, unless you were an Aerojet employee on
                                        December 1, 1975.  In that case, your life insurance will be 25% of the
                                        amount of insurance in force on December 1, 1975, or $3,000, whichever is
                                        greater.  You also have the option to convert all or part of the life
                                        insurance provided to you as an active employee to an individual insurance
                                        policy.  Information on life insurance conversion can be obtained from the
                                        Benefits Department.  Conversion must be made within 31 days of loss of
                                        coverage.

         SAVINGS PLAN                   While your right to make additional contributions will cease upon your
                                        retirement, you will be entitled to receive your account balances upon your
                                        election delivered to Fidelity, in accordance with Plan terms.  You can
                                        also leave your account balances in the Savings Plan for as long as you
                                        wish, until you reach age 70 1/2.  If you have an outstanding loan from the
                                        Savings Plan, that amount will be treated as having been distributed to you
                                        unless you repay it within 90 days after your designated Retirement Date.

         SPENDING                       Your eligibility to make pre-tax contributions to a healthcare or dependent
         ACCOUNTS                       day care spending account will end upon employment termination on your
                                        designated Retirement Date.  You may continue to make after-tax
                                        contributions to your spending accounts under COBRA.

         LONG-TERM                      Your participation in the long-term disability plan ends upon employment
                                        DISABILITY termination on your designated Retirement Date.

         AD&D                           Coverage for you and your dependents under Accidental Death and
         INSURANCE                      Dismemberment Insurance ends upon employment termination on your designated
                                        Retirement Date.

         GUL                            You can continue your coverage under Group Universal Life Insurance by
         INSURANCE                      paying premiums directly to the insurance company.  You must contact the
                                        insurance company within 31 days after your employment terminates on your
                                        designated Retirement Date.
</TABLE>

                                       28
<PAGE>

52.      Can I continue to participate in the Employee Assistance Program?

         Yes, the EAP continues to be available to all employees and their
         families. As an additional benefit, access to the EAP will be extended
         for 6 months beyond your designated Retirement Date.

53.      What vacation pay will I be entitled to receive upon my retirement
         under the VERP?

         On your designated Retirement Date, you will receive a lump-sum payment
         of any unused, accrued vacation in accordance with Company policy.

         Regardless of how much vacation pay you receive, your employment with
         GenCorp will terminate on your designated Retirement Date, and there is
         no "bridging" of service based on vacation benefits.

54.      How will my retirement affect my benefits under any incentive or
         deferred compensation plan in which I may participate?

         Upon termination of employment at your designated Retirement Date, your
         benefits (if any) under such plans are governed by the terms of those
         plans. Here is a brief summary of the relevant provisions:

                  GENCORP EXECUTIVE INCENTIVE COMPENSATION (ANNUAL BONUS)
                  PROGRAM: With the exception of Corporate Officers under
                  Contract, eligible GenCorp Executives will be entitled to
                  receive, at such times as normally payable, any bonus due for
                  a fiscal year already completed and a prorated amount of any
                  bonus that would be payable for a fiscal year that was not
                  completed, until commencement of Special Assignment status and
                  Salary Continuation. Upon commencement of Salary Continuation,
                  bonus eligibility ceases.

                  STOCK OPTION PLAN: To the extent an outstanding Option has
                  become vested, and therefore exercisable, on or before
                  commencement of Salary Continuation, such Option would remain
                  in effect for the term specified in the Option. To the extent
                  an outstanding Option has not become exercisable on or before
                  Salary Continuation, such Option would lapse automatically.

                  RESTRICTED STOCK: Additional restricted shares under the 1999
                  Equity and Incentive Compensation Plan will NOT be granted to
                  eligible GenCorp Executives on Salary Continuation. However,
                  such employees will be eligible to retain previously granted
                  restricted shares that have vested, including (A) those
                  restricted shares that vest in February 2002 as the result of
                  achieving performance objectives in 2001, and (B) for eligible
                  employees who work

                                       29
<PAGE>

                  throughout the entire 2002 fiscal year, those restricted
                  shares that vest in February 2003 as a result of achieving
                  performance objectives in 2002.

                  DEFERRED BONUS PLAN: Distribution of your interest in the
                  Deferred Bonus Plan would occur in accordance with the terms
                  of that plan. There are no special provisions in the Plan
                  which address termination of employment by reason of
                  retirement.

55.      When and in what form will the Pre-Retirement Financial Counseling and
         Outplacement Support Services be provided?

         These programs, which are generally group programs by nature, will be
         scheduled after November 19, 2001,for those who elect the VERP. The
         nature and duration of these programs will be at the Company's
         discretion.

56.      Why are Outplacement Support Services being provided?

         Some employees may use the VERP as an opportunity to pursue a second
         career, while supplementing their income through the benefits provided
         under the VERP.

57.      Can I consult a lawyer or tax advisor about the VERP?

         Yes. IN FACT, GENCORP ENCOURAGES YOU TO DO THAT. You may also ask the
         Human Resources Department about the details of the VERP.

                  However, the decision to elect the VERP is strictly voluntary
         and up to you. You should not feel coerced or forced to make any
         decision based on someone else's counsel or opinion.

                                       30

<PAGE>

                                                                      APPENDIX B

                                                                November 5, 2001

                 2001 GENCORP VOLUNTARY EARLY RETIREMENT PROGRAM

                              SUPPLEMENTAL Q & A'S

                                 [NON-QUALIFIED]

1.       Under the VERP, unless in its discretion the Company chooses to hold me
         over in my present position for any period up to December 1, 2002, I
         will be placed on Salary Continuation on December 1, 2001, and my
         estimated enhanced pension benefits have been computed assuming that I
         begin Salary Continuation on December 1, 2001. Will I be penalized if
         the compensation I earn during any hold over period prior to initiation
         of Salary Continuation adversely affects the final calculation of my
         pension benefits?

         No. You will not be penalized if the Company elects to hold you over.
         Upon your retirement, your final pension benefits will be calculated
         based on actual compensation received during any hold over period, and
         they will also be calculated as though you began Salary Continuation on
         December 1, 2001. You will be given whichever of these benefits is
         higher, or if use of any other appropriate period of service
         permissible under the pension plan yields an even higher benefit, you
         will be given that higher benefit.

2.       I understand that my Enhanced Pension Benefit will be ordinary income,
         and will be subject to normal federal, state and (if applicable) local
         income taxes when it is paid to me. Will my Enhanced Pension Benefit
         also be subject to FICA taxes?

         The Enhanced Pension Benefit IS subject to FICA tax, which will be
         withheld from each payment. The normal annual maximum ($5,263.80 for
         2002) on the 6.2% "old-age" part of FICA tax will apply and, if you are
         working elsewhere, may already be satisfied by other earnings.

         The company has explored methods to treat the entire lump sum value of
         your Enhanced Pension Benefit as being paid at once. This could save
         money for both you and the company. However, some very recent tax
         regulations appear to have blocked this approach.

<PAGE>

3.       Once GenCorp designates the date on which my regular employment ends
         and my Special Assignment/Salary Continuation begins, can the Company
         later change its decision and designate a new date through which I must
         work?

         Only with your agreement. You are entitled to make plans based upon the
         Company's designation of the date on which you start your Special
         Assignment.. If, for example, you are initially given a date of June 1,
         2002, the Company can't require you to actively work until a later date
         as a condition for receiving the benefits of the VERP. Of course, if
         you agree, your commencement of Special Assignment status can be
         delayed, but not beyond December 1, 2002.

4.       If I have an attractive employment opportunity, can I leave the Company
         prior to the date designated by the Company for commencement of my
         Special Assignment and still receive the benefits of the VERP?

         No. The Company will designate when your Special Assignment will begin
         based upon its business needs, and remaining actively employed with the
         Company until that date is an express condition of receiving VERP
         benefits. However, in its absolute discretion the Company can
         accelerate the start of your Special Assignment upon your request to do
         so.

5.       If I elect to receive my Enhanced Pension Benefit in monthly payments,
         can I elect the form of payment like under the qualified plan?

         Yes, the same benefit options available in your regular qualified
         pension plan are available under the VERP. However, you do not have to
         elect the same form of payment under both the qualified plan and the
         VERP.

         The different benefit forms are as follows:

                 Form of Payment                           Percent of
                 ---------------                      Single Life Annuity*
                                                      -------------------

                 Single Life Annuity                          100%
                 100% Joint & Survivor Annuity                 94%
                 50% Joint & Survivor Annuity                  90%
                 5-Year Certain Life Annuity                   99%
                 10-Year Certain Life Annuity                  96%
                 15-Year Certain Life Annuity                  92%
                 20-Year Certain Life Annuity                  89%

         *Percentages given are approximations. Actual annuity amounts can only
         be determined based upon the ages of both the participant and the
         spouse.

                                      -2-
<PAGE>

6.       If I was relocated by GenCorp within the last year, and I elect to
         retire under the VERP, will I be required to repay the Company's
         relocation costs?

         No. GenCorp's Relocation Assistance program allows the Company to ask
         for repayment of its relocation expenses if the relocated employee
         terminates for any reason within that employee's control within 12
         months of relocation. If you elect to retire under the VERP, the
         Company will designate your retirement date, anytime between December
         1, 2001 and December 1, 2002, in its complete discretion. Since the
         Company has control over when you actually terminate your employment
         with GenCorp, you will not be asked to repay any relocation expenses.

7.       I understand that if I elect to receive my Enhanced Pension Benefit in
         monthly payments, I can elect the same distribution options that are
         available under the qualified pension plan. However, if I elect to
         receive my Enhanced Pension Benefit in 5 annual installments, can I
         designate a beneficiary to receive my benefits upon my death?

         Yes. A beneficiary designation form will be provided to participants
         who select the 5-installment payment option. The beneficiary
         designation will be subject to the same spousal consent rules that
         apply to the payment of benefits under the qualified plan.

8.       I understand that my Enhanced Pension Benefit would be an unsecured
         liability of the Company. In the event that the Company might someday
         declare bankruptcy, how will my claim for payment of this benefit
         compare to claims of the Company's other creditors?

         You would be considered a general creditor of the company and generally
         would have the same status as other general creditors of the company.
         There is some limited priority given to wages earned within 90 days of
         the filing of a bankruptcy petition.

9.       I participate in the Kaiser HMO as an active employee. If I continue to
         participate in the Kaiser HMO as a retiree, will my coverage be any
         different because I am a retiree? [California Only]

         No. Active employees and retirees who participate in the Kaiser HMO
         receive the same services from Kaiser. Likewise, active employees and
         retirees who participate in the PacifiCare HMO receive the same
         services from PacifiCare.

                                      -3-
<PAGE>

10.      If I currently participate in the Kaiser HMO as an active employee, can
         I switch to PacifiCare or to the non-HMO plan as a retiree? [California
         Only]

         Yes. In fact, there is an open enrollment period each year (just like
         in the plan for active employees) when you can reconsider your choice.

11.      I understand that there may be contributions required in order to have
         retiree medical benefits. Will my contributions be different if I pick
         HMO or non-HMO coverage, or depending on which HMO I pick?

No.      When contributions are required, the cost will be the same for each and
         every retiree in the same age category (under 65, or 65 and over).

12.      If I don't participate in an HMO, how does the retiree medical plan
         compare to the medical plan for active employees?

         Here are some of the key differences:

<TABLE>
<CAPTION>
         ---------------------- ---------------------------------------------------------- ------------------------
                                                  Active Employee Plan                          Retiree Plan
                                                  --------------------                          ------------
                                         In-network                  Out-of-network
                                         ----------                  --------------
         ---------------------- ------------ ----------------- ------------ -------------- ------------------------
<S>                             <C>            <C>             <C>            <C>            <C>
         ANNUAL                 Low                 0          Low            3% of pay        $ 500 per person
         DEDUCTIBLE (1)         Middle              0          Middle         2% of pay      $1,000 per family
                                High                0          High           1% of pay
         ---------------------- ------------ ----------------- ------------ -------------- ------------------------
         ANNUAL                 Low             7% of pay      Low            7% of pay      $2,000 per family
         OUT-OF-POCKET          Middle          6% of pay      Middle         6% of pay
         MAXIMUM (2)            High            5% of pay      High           5% of pay
         ---------------------- ------------ ----------------- ------------ -------------- ------------------------
         PLAN COPAYMENT         Low                  80%       Low               60%                 80%
                                Middle               90%       Middle            80%
                                High                100%       High             100%
         ---------------------- ------------ ----------------- ------------ -------------- ------------------------
</TABLE>

         (1)      For active plan, maximum deductibles are: High - $1,200,
                  Middle - $1,000, Low- $800.
         (2)      Out-of-Pocket Maximum does not include annual deductible,
                  copayment for prescription drugs, treatment of mental, nervous
                  or substance abuse conditions, or $25 emergency room fee.

13.      I am considered to be a "16b officer" under the federal securities
         laws, and this impacts my ability to trade GenCorp shares, even through
         the Retirement Savings Plan. Will I still be considered a "16b" officer
         while I am on Special Assignment and receiving Salary Continuation?

         When your Special Assignment begins, you will be asked to resign as an
         officer of the company, and you will be subject to Rule 16b reporting
         requirements for

                                      -4-
<PAGE>

         six months after you cease to be an officer. However, as long as you
         still have inside information, you will be prohibited from trading
         GenCorp shares based upon that information.

         If you also hold restricted shares, there are limitations that apply to
         your trading of those shares. GenCorp's law department will be able to
         provide you with appropriate guidance.

14.      As an officer, I am covered by an Indemnification Agreement. Will I
         still be covered by the Indemnification Agreement when I am on Special
         Assignment and receiving Salary Continuation?

         Yes. Just like any former officer, the Indemnification Agreement will
         cover you for any events that occur while you are an officer, even if a
         claim or legal action is brought later. While you are on Special
         Assignment, you will no longer be serving as an officer or be involved
         in or responsible for actions of the company. Nevertheless, the
         Indemnification Agreement will cover you for any events that occur
         while you are on Special Assignment, should you be named in a claim or
         legal action.

15.      The Stock Option plan provides for accelerated vesting of Options upon
         a "change in control" of GenCorp. If a change in control occurs while I
         am on Special Assignment and receiving Salary Continuation, will my
         unvested Options become vested?

         No. Your Options that are unvested when you begin your Special
         Assignment will lapse at that time. Therefore, you would no longer have
         any unvested Options that could be affected by a subsequent change in
         control.

                                      -5-

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