Document:

EX-10(U) TRW Benefits Equalization Plan

Exhibit 10(u)

TRW BENEFITS EQUALIZATION PLAN

Amended and Restated

Effective January 1, 2001

1. Purpose. The purpose of the TRW Benefits Equalization Plan (“BEP”), as
amended and restated effective January 1, 2001, is to provide supplemental
retirement and death benefits to those management and highly-compensated
employees of TRW Inc. and its subsidiaries (“TRW”) whose benefits under the TRW
Employee Stock Ownership and Savings Plan (the “Stock Savings Plan”) are
limited by reason of:

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

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

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

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

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

2. Eligibility. An employee whose base pay and other compensation paid or
deferred in a calendar year exceeds the compensation limitations of Code
§401(a)(17) for such year will be eligible to participate in the BEP for the
immediately following calendar year provided he or she is otherwise eligible,
and has elected, to participate in the Stock Savings Plan and has timely
elected to participate in the BEP. Once an employee has timely elected to
participate in the BEP, he or she will continue to be eligible to participate
in subsequent years even if his or her base pay and other compensation paid (or
deferred) falls below the compensation limit of Code §401(a)(17). However, if
an employee fails to timely elect to participate in the BEP upon becoming
eligible, such employee will cease to be eligible to participate in the BEP if
his or her base pay and bonus paid (or deferred) falls below the compensation
limit of Code §401(a)(17).

3. Accounts.

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

 

		
	 	      i. that percentage of the Participant’s current compensation which
the Participant elected to contribute to the Stock Savings Plan as
“Before-Tax Contributions” and that percentage of the Participant’s
current compensation which the Company would have contributed to the Stock
Savings Plan as “TRW Matching Contributions” (both terms as defined under
the Stock Savings Plan) to the extent that such amounts cannot be
contributed to the Stock Savings Plan due to any of the reasons identified
in Section 1; provided, however, that the percentage of the Participant’s
compensation credited to the Account, when combined with the percentage
elected under the Stock Savings Plan, may not at any time be greater than
that amount of “Before-Tax Contributions” which the Participant would be
permitted to contribute, as a highly-compensated Participant, to the Stock
Savings Plan without regard to the above-referenced limitations; and
further provided, that the TRW Matching Contributions credited to the
Account shall be reduced by any amounts actually contributed for the
Participant by the Company to the Stock Savings Plan as TRW Matching
Contributions; plus
	 
	 	      ii. investment performance on a daily basis on the amounts credited
under Section 3.a.i. above in accordance with the Participant’s election
as provided in Section 4 below; provided, however that interest and
dividend performance under PIMCO Total Return Fund and PRIMCO Stable Value
fund will be accrued daily and credited monthly.

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

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

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

4. Earnings.

      a. Each Participant in the BEP may elect to have monies credited to his
or her Account based upon the performance of the same investment fund options
offered to Participants under the Stock Savings Plan; provided, however, that
effective July 1, 2000, any changes to the investment funds offered to
participants under the Stock Savings Plan will result in a change to the
investment options available under the BEP only if and when such changes are
approved by the Chairman of the Board, the General Counsel and the Executive
Vice President – Human Resources of TRW; and provided further that the
self-directed brokerage window to be offered to participants under the Stock
Savings Plan effective July 5, 2000, will not be made available as an
investment option under the BEP; such election may be made by allocating the
entire Account to one of the earnings options or by allocating the Account
between selected investment fund options in one percent multiples. Each
Participant may change his or her election on a daily basis with Putnam
through its online or automated voice response unit or through a BEP Customer
Service Representative.

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

-2-

5. Time of Payment.

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

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

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

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

6. Payment of Benefits.

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

-3-

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

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

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

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

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

8. Directors/Committee. For purposes of the BEP, “Directors” shall mean the
Compensation Committee of the Directors of TRW Inc. with respect to the
approval of benefits of any Participant who is, or ever was, either a Director
of TRW, a member of the Chief Executive Office, or a member of the Management
Committee. With respect to the approval of benefits of other Participants,
“Committee” shall refer to a Special Committee consisting of those three
employees of TRW Inc. who occupy the most senior positions in the Company Staff
Finance, Human Resources, and Law Departments. The Committee or its delegate
shall interpret the provisions of the BEP, determine the rights and status of
Participants and beneficiaries hereunder, and handle the general administration
of the BEP. Such interpretations and determinations shall be final and
conclusive as to all interested persons.

9. Claims Procedure. If a claim for a BEP benefit is denied, in whole or in
part, a written notice of denial provided to the Participant shall state the
reasons for denial, a description of any additional material or information
required; and an explanation of the claim review procedure. Any person whose
claim, upon his written request for review, is again denied may make a second
request for review. A decision on such second request shall normally be made
within sixty days.

-4-

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

11. Miscellaneous Provisions.

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

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

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

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

-5-EX-10(Y) BDM Int. Defined Cont. Sup. Exec Ret Plan

Exhibit 10(y)

BDM INTERNATIONAL, INC.

DEFINED CONTRIBUTION SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

Effective October 8, 1993

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
				
				
				
			PAGE
				
				
				
			

	Article 1			
				-
				NAME AND DEFINITIONS	
	
	
	
	

				
1.1
				
				Name
			2
	
	
	
	

				
1.2
				
				Definitions
			2
	
	
	
	

	Article 2			
				-
				BENEFITS	
	
	
	
	

				
2.1
				
				Computation of Benefits
			4
	
	
	
	

				
2.2
				
				Form of Retirement Benefit Payments
			4
	
	
	
	

				
2.3
				
				Death Before Benefit Payments Commence
			6
	
	
	
	

				
2.4
				
				Time of Benefit Payments
			6
	
	
	
	

	Article 3			
				-
				ADMINISTRATION	
	
	
	
	

				
3.1
				
				Duties of Committee
			7
	
	
	
	

				
3.2
				
				Finality of Decisions
			7
	
	
	
	

	Article 4			
				-
				AMENDMENT, TERMINATION, AND LOSS OF BENEFITS	
	
	
	
	

				
4.1
				
				Amendment and Termination
			8
	
	
	
	

				
4.2
				
				Contractual Obligation
			8
	
	
	
	

				
4.3
				
				Loss of Benefits
			8
	
	
	
	

	Article 5			
				-
				MISCELLANEOUS	
	
	
	
	

				
5.1
				
				Rights of Participants
			9
	
	
	
	

				
5.2
				
				Inalienability of Benefits
			9
	
	
	
	

				
5.3
				
				Applicable Law
			9
	
	
	
	

				
5.4
				
				Unfunded Plan
			9
	
	
	
	

				
5.5
				
				Successor Organizations
			9
	
	
	
	

	Exhibit A

 

BDM INTERNATIONAL, INC.

Defined Contribution Supplemental Executive Retirement Plan

(Effective October 8, 1993)

      BDM International, Inc. hereby establishes the BDM International, Inc.
Defined Contribution Supplemental Executive Retirement Plan for the benefit of
eligible employees effective October 8, 1993.

 

-2-

Article 1

NAME AND DEFINITIONS

	 	 	 
	1.1		
Name. The plan as set forth herein or in any amendment hereof shall be
known as the BDM International, Inc. Defined Contribution Supplemental
Executive Retirement Plan, herein referred to as the “Plan.”
	 
	1.2		
Definitions. For purposes of this Plan, the following terms, when
capitalized, shall have the following meanings:

	 	 	 
	a.		
“Actuarially Equivalent” shall mean having the same value
when computed based on the UP-1984 Table and 8% interest.
	 
	b.		
“Beneficiary” means a person designated by the Member,
with the right of the Member to change the designation,
or the Member’s estate if the Member does not designate a
person or the designated person does not survive the
Member.
	 
	c.		
“Board” means the Board of Directors of BDM
International, Inc., or any successor thereto.
	 
	d.		
“Code” means the Internal Revenue Code of 1986, as
amended, or as it may be amended from time to time.
	 
	e.		
“Committee” means the Compensation Committee of the Board.
	 
	f.		
“Company” means BDM International, Inc., any successor
thereto, or any subsidiary thereof.
	 
	g.		
“Member” means the individuals set forth in Exhibit A,
plus any other individuals specifically designated by the
Board to participate in the Plan.
	 
	h.		
“Regular Full-Time Employee” means an individual in the
full-time employment of the Company in an established job
requiring a minimum of forty Hours of Service per week;
provided, however, that an individual is not a “Regular
Full-Time Employee” while he is on
disability or a leave of absence or if he is employed on
a temporary basis.

-3-

Article 2

BENEFITS

	 	 	 
	2.1		
Computation of Benefits. Each Member shall be entitled to a benefit
which is Actuarially Equivalent to an account balance. Such account
balance will be credited with the contribution amount set forth
opposite the Member’s name in Exhibit A, attached hereto, each
December 31 the Member is employed by the Company from his Date of
Membership, as specified in Exhibit A, to his date of termination of
employment with the Company, inclusive. Notwithstanding the preceding
sentence, the account balance will be credited with the contribution
amount on a December 31 only if the Member was continuously employed
by the Company during the preceding 12 months as a Regular Full-Time
Employee. On each December 31 the Member is employed by the Company
from his date of Membership, as specified in Exhibit A, to his date of
termination of employment with the Company, inclusive, such account
balance (before being credited with the contribution amount on such
December 31) will be credited with interest at the rate of 8%. The
benefit shall be payable in one of the forms described in Section 2.2
or 2.3, commencing at the time described in Section 2.4.
	 
	2.2		
Form of Retirement Benefit Payments.

	 	 	 
	a.		
A Member may elect to have his benefit, as
determined under Section 2.1, paid in one of the
following forms if he survives to the time of
benefit payments described in Section 2.4:

-4-

	 	 	 
	i.		
A monthly benefit payable for life
to the Member. Benefit payments
under this option shall terminate
with the monthly payment preceding
the date of death of the Member.
	 
	ii.		
A joint and survivor benefit
providing a monthly benefit
payable for life to the Member,
with 100%, 66-2/3% or 50% of the
benefit, as elected by the Member,
continuing after his death for the
remaining lifetime of a
beneficiary the Member last
designates prior to the time of
benefit payments described in
Section 2.4. Benefit payments
under this option shall terminate
with the monthly payment preceding
the date of death of the Member or
such beneficiary, whoever is last
to survive.
	 
	iii.		
A ten-year certain and life
benefit providing a monthly
benefit payable for life to the
Member with 120 monthly payments
guaranteed to the Member or his
Beneficiary in the event of the
Member’s death. Benefit payments
under this option shall terminate
with the later of the monthly
benefit payment preceding the date
of death of the Member or the
120th monthly benefit payment.

	 	 	 
	b.		
The election of any form of benefit shall become
effective only at the time of benefit payments
described in Section 2.4. The election may be made
or revoked by the Member without the consent of any
other person, shall be made or revoked on a form
prescribed by and filed with the Committee, and may
be made or revoked at any time before the time of
benefit payments. If the Member fails to make a
timely election of a form of benefit or revokes a
prior election and fails to make a timely election
of a new form of benefit, the benefit shall be paid
in the form described in Section 2.2 a.i.

-5-

	 	 	 
	2.3		
Death Before Benefit Payments Commence. If a Member dies before the
time of benefit payments described in Section 2.4, his benefit, as
determined under Section 2.1, shall be paid in a single sum to his
Beneficiary.
	 
	2.4		
Time of Benefit Payments. Benefits due under this Plan shall be
paid or commence to be paid as of the first day of the month
coincident with or next following the Member’s termination of
employment with the Company.

-6-

Article 3

ADMINISTRATION

	 	 	 
	3.1		
Duties of Committee. This Plan shall be administered by the
Committee according to the provisions set forth herein.
	 
	3.2		
Finality of Decisions. The decisions made and the actions taken by
the Committee in the administration of this Plan shall be final and
conclusive on all persons, and the members of the Committee shall not
be subject to individual liability with respect to this Plan.

-7-

Article 4

AMENDMENT, TERMINATION, AND LOSS OF BENEFITS

	 	 	 
	4.1		
Amendment and Termination. While the Company intends to maintain
this Plan for as long as necessary, the Board reserves the right to
amend and/or terminate this Plan at any time for whatever reasons it
may deem appropriate provided that no amendment shall be effective to
reduce the amount of benefit accrued by the Member as of the amendment
date. Should the Company terminate the Plan, the Member’s benefit
accrued to the date of termination shall be distributed in a lump sum
as soon as administratively feasible.
	 
	4.2		
Contractual Obligation. The Member and his beneficiaries shall have
a contractual right to the benefits accrued under this Plan. However,
the right to those benefits are solely those rights of an unsecured
general creditor of the Company.
	 
	4.3		
Loss of Benefits. Notwithstanding Section 4.2, if a Member (a) is
discharged by the Company because of dishonesty, fraud,
misappropriation of funds, or commission of a felony arising out of
any act directly affecting the Company in his capacity as an employee,
or (b) engages in any activity which is competitive with or adverse to
any activity of the Company, in the sole discretion of the Committee,
such Member’s (and his Beneficiary’s) rights to any benefits under
this Plan may be cancelled.

-8-

Article 5

MISCELLANEOUS

	 	 	 
	5.1		
Rights of Participants. Nothing contained in this Plan shall be
construed as a contract of employment between the Company and a
Member, or as a right of any Member to be continued in the employment
of the Company, or as a limitation of the right of the Company to
discharge any Member, with or without cause.
	 
	5.2		
Inalienability of Benefits. The benefits payable under this Plan
may not be assigned or alienated.
	 
	5.3		
Applicable Law. The provisions of this Plan shall be construed,
regulated, and administered under and in accordance with the laws of
the Commonwealth of Virginia.
	 
	5.4		
Unfunded Plan. The Plan is an unfunded plan maintained to provide
deferred compensation benefits for a select group of management and
highly compensated employees. Reference to the calculation of a
Member’s benefit is for recordkeeping purposes only and is not to be
construed as being funded or creating a trust fund.
	 
	5.5		
Successor Organizations. This Plan shall inure to the benefit of
the Company and the Member and be binding on the Company and its
successors and assigns. If a successor organization refuses to accept
the rights and obligations of this Plan, the Plan shall terminate
prior to assignment by the Company and all accrued undistributed
benefits shall be distributed in a lump sum as soon as
administratively feasible.

-9-

      IN WITNESS WHEREOF, BDM International, Inc., by its authorized officers, has
caused this document to be executed on the 10th day of November, 1993.

	 	 	 	 	 	 	 	 
							  BDM INTERNATIONAL, INC.
	 
				By:			  /s/ Philip A Odeen
							

							  Philip A. Odeen, President
	 
	  ATTEST:
	 
	  /s/ John F. McCabe
	

	  John F. McCabe, Secretary

EXHIBIT A

	 	 	 	 	 
	Member		Contribution Amount		Date of Membership
	
		
		

	 
	Philip A. Odeen		
$57,223
		December 17, 1993
	 
	Roy V. Woodle		
$44,000
		October 8, 1993
	 
	John J. Todd		
$20,345
		January 1, 1996

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