Document:

EX-10(P) Deferred Comp Plan for Non-Employee Dir.

Exhibit 10(p)

 

 

DEFERRED COMPENSATION PLAN

FOR NON-EMPLOYEE DIRECTORS OF TRW INC.

 

Amended and Restated as of:

January 1, 2001

Deferred Compensation Plan

for Non-Employee Directors of TRW Inc.

 

	 
	Table of Contents

	 	 	 	 	 	 	 
					Page
	
	
	
	

	
	
	
	

	
	
	
	

	Section 1.		Effective Date			1	
	
	
	
	

	
	
	
	

	
	
	
	

	Section 2.		Purpose			1	
	
	
	
	

	
	
	
	

	
	
	
	

	Section 3.		Eligibility			1	
	
	
	
	

	
	
	
	

	
	
	
	

	Section 4.		Administration			1	
	
	
	
	

	
	
	
	

	
	
	
	

	Section 5.		Deferral of Compensation			2	
	
	
	
	

	
	
	
	

	
	
	
	

	Section 6.		Effect of Deferral Elections			3	
	
	
	
	

	
	
	
	

	
	
	
	

	Section 7.		Deferred Compensation Account			4	
	
	
	
	

	
	
	
	

	
	
	
	

	Section 8.		Value of Deferred Compensation Accounts			5	
	
	
	
	

	
	
	
	

	
	
	
	

	Section 9.		Distribution of Account			5	
	
	
	
	

	
	
	
	

	
	
	
	

	Section 10.		Acceleration of
Account Distribution Due to Unforeseeable Emergency
			7	
	
	
	
	

	
	
	
	

	
	
	
	

	Section 11.		Death of Eligible Director;
Distribution of Account Balance
			8	
	
	
	
	

	
	
	
	

	
	
	
	

	Section 12.		Acceleration of Account Distribution
Due to Change in Control
			8	
	
	
	
	

	
	
	
	

	
	
	
	

	Section 13.		Eligible Directors’ Rights Unsecured			10	
	
	
	
	

	
	
	
	

	
	
	
	

	Section 14.		Assignability			10	
	
	
	
	

	
	
	
	

	
	
	
	

	Section 15.		Amendment			10	

SECTION 1.  Effective Date.

      The effective date of the Deferred Compensation Plan for Non-Employee
Directors of TRW Inc. (the “Plan”) is July 1, 1997 (the “Effective Date”).

SECTION 2.  Purpose.

      The purposes of the Plan are to align a significant portion of Director
compensation with creating and sustaining shareholder value and to attract and
retain a diverse and truly superior Board of Directors. The Plan is intended
to serve as the mechanism that will allow each eligible Director to defer all
or a portion of the compensation otherwise payable to him or her for his or her
services to TRW Inc. (the “Company”).

SECTION 3.   Eligibility.

      Each Director of the Company who is not an employee of the Company or of
one of its subsidiaries shall be eligible to, and shall participate in, the
Plan (the “Eligible Director”). Following the Effective Date of the Plan, (i)
a non-employee Director will be deemed an Eligible Director as of the effective
date of his or her election as a Director of the Company, and (ii) an employee
Director will be deemed an Eligible Director as of the date he or she ceases to
be an employee of the Company or of one of its subsidiaries but continues to be
a Director, in accordance with the provisions of the Directors’ retirement
policy as amended from time to time. Eligibility to receive and defer
compensation pursuant to this Plan will cease upon the earlier of the Eligible
Director’s termination of service as a Director of the Company or upon his or
her death.

SECTION 4.  Administration.

      The Plan shall be administered by a committee (the “Committee”) consisting
of the following three officers of the Company: the Executive Vice President
and Chief

Financial Officer, the Executive Vice President and General Counsel,
and the Executive Vice President of Human Resources. The Committee shall have
the power to (i) determine all questions of fact or interpretation regarding
Plan provisions; (ii) adopt rules, regulations and procedures deemed necessary
and appropriate to carry out the Plan’s operation; and (iii) maintain or cause
to be maintained necessary and appropriate records. The Committee’s
determinations on questions of fact or interpretation of Plan provisions will
be binding on all parties.

      The Committee may delegate its authority to carry out specific
responsibilities given to it under the Plan.

SECTION 5.  Deferral of Compensation.

      (a) Automatic Deferral. One-half (50 percent) of the annual retainer,
exclusive of any retainer paid for chairing a Committee of the Directors, (the
“Base Annual Retainer”) otherwise payable by the Company to an Eligible
Director for his or her services to the Company on or after the Effective Date,
will be automatically deferred in equivalent shares of TRW Common Stock (the
“Automatic Deferral”) under the Plan. The shares will be held in trust for the
Eligible Director’s benefit.

      (b) Elective Deferral. In addition to the Automatic Deferral described
above, an Eligible Director may elect to defer all or a portion of the
remaining 50 percent of his or her Base Annual Retainer (the “Elective
Deferral”), expressed either as a dollar amount or as a percentage, and any
retainer that he or she may receive for chairing one of the Committees of the
Directors of the Company (together, the “Available Retainer”), as well as any
additional compensation set for committees, assignments or the performance of
special projects.

      With respect to the initial elections under the Plan for 1997, an Eligible
Director may elect to defer all or any portion of the Available Retainer for
services to

– 2 –

be performed on or after the Effective Date, by completing a deferral election
form prescribed by the Secretary of the Company (the “Secretary”) and returning
it to the Secretary with the following effect: (i) on or before June 13, 1997
for effect as of July 1; (ii) on or before July 15, 1997 for effect by August
1; and (iii) on or before July 31, 1997 for effect September 1.

      An Eligible Director who (i) is elected a Director of the Company
following the Effective Date of the Plan or (ii) ceases to be an employee of
the Company or one of its subsidiaries but continues to be a Director may
choose to defer all or any portion of the Available Retainer for his or her
subsequent services to the Company, provided that the prescribed deferral
election form is delivered to the Secretary within 30 days after the effective
date of the Eligible Director’s (i) election as a Director of the Company or
(ii) change in employment status.

      For years subsequent to 1997, an Eligible Director who elects to defer all
or a portion of the Available Retainer must execute the prescribed election
form and deliver it to the Secretary prior to the first day of the calendar
year for which the election is to be effective. If the Director becomes
eligible to participate in the Plan during the calendar year, the prescribed
deferral election form must be delivered to the Secretary within 30 days after
the effective date of the Eligible Director’s (i) election as a Director of the
Company or (ii) change in employment status.

SECTION 6.  Effect of Deferral Elections.

      Deferral elections, expressed either as a dollar amount or as a
percentage, made under this Plan with respect to any calendar year may not be
amended or revoked after the beginning of the calendar year with respect to
compensation to be received for services performed during that calendar year.

– 3 –

SECTION 7.  Deferred Compensation Account.

      As of the Effective Date of the Plan, or the effective date of the
Director’s eligibility, as appropriate, the Company shall establish an unfunded
deferred compensation account (the “Account”) for each Eligible Director
consisting of an Automatic Deferral portion and an Elective Deferral portion,
if any.

      (a) Automatic Deferral Portion. The Company will establish a trust
account for the benefit of the Eligible Directors. On the first business day
of each month, the Company will transfer to the trustee of the trust account
one-twelfth (1/12) of the amount of each Eligible Director’s Automatic
Deferral, to be used by the trustee to purchase equivalent shares of TRW Common
Stock that will be held in the trust account. The trustee will participate in
the Company’s Dividend Reinvestment Plan, and all cash dividends will be
reinvested in TRW Common Stock for the Eligible Directors’ benefit.

      (b) Elective Deferral Portion. This portion of the Eligible Director’s
Account will consist of (i) amounts rolled over from the Eligible Director’s
Account under the former Deferred Compensation Plan for Non-Employee Directors
of TRW Inc., if applicable, and (ii) any portion of the Available Retainer that
the Eligible Director elects to defer. These amounts will be held in phantom
accounts and indexed to the performance of one or more investment funds
established under The TRW Employee Stock Ownership and Stock Savings Plan (the
“Stock Savings Plan”).

      Allocation of the Elective Deferral portion of the Eligible Director’s
Account to any of the available investment funds must be made in increments of
1 percent. The Eligible Director’s allocation choices shall be implemented as
soon as practicable, in the sole discretion of the Committee.

– 4 –

      Subject to any restrictions imposed by Section 16(b) of the Securities
Exchange Act of 1934, the Eligible Director may, at any time, (i) change his or
her allocation choices with respect to future Elective Deferrals or (ii)
reallocate the hypothetical investment earnings in the existing Elective
Deferral portion of his or her Account. Changes or reallocations so made must
also be in increments of 1 percent.

      The Committee shall have the right to substitute investment fund choices
for the Elective Deferral portion of the Accounts from time to time, without
adversely affecting existing accruals in the Eligible Directors’ Accounts.

      Hypothetical investment earnings shall continue to accrue until the
Eligible Director’s Account is fully distributed.

SECTION 8.  Value of Deferred Compensation Accounts.

      The value of each Eligible Director’s Account shall reflect all amounts
deferred, including gains and losses from the hypothetical investments, and
shall be determined on the last day of each month (the “Valuation Date”). The
value of hypothetical investments in the Stock Savings Plan shall be based upon
the valuation date under the Stock Savings Plan coincident with or immediately
preceding such Valuation Dates.

      The amount in an Eligible Director’s Account as of each Valuation Date
that has not been previously deemed invested shall be deemed invested in a
hypothetical investment on such date, based on the value of the hypothetical
investment on such date.

SECTION 9.  Distribution of Account.

      No distributions may be made from an Eligible Director’s Account, except
as provided in this Section and Sections 11 and 12.

– 5 –

      (a) Automatic Deferral Portion. Automatic Deferral amounts and earnings
from the Company’s Dividend Reinvestment Plan credited to an Account shall be
distributed, beginning as soon as practicable, after the Eligible Director
ceases to hold office as a Director of the Company. The distribution shall be
made in whole shares of TRW Common Stock, valued at the fair market value of a
share of TRW Common Stock on the date of distribution. The Eligible Director
shall specify, at the time set forth in Section 5 for making Elective
Deferrals, how distribution is to be made with respect to this portion of his
or her Account:

	 	 	 
	 (1)		
as a single payment, with any fractional shares being paid in
cash; or
	
	
	
	

	
	
	
	

	
	
	
	

	
	
	
	

	 (2)		
in regular annual installments payable over a period not to
exceed 10 years, with fractional shares paid in cash at the time of
the final installment payment.

      (b) Elective Deferral Portion. Elective Deferral amounts and the relevant
hypothetical investment earnings credited to an Account shall be distributed in
accordance with the instructions given to the Secretary by the Eligible
Director at the time of his or her election to defer all or a portion of the
Available Retainer and may begin as of:

	 	 	 
	 (1)		
the date the Eligible Director ceases to hold office as a
Director of the Company;
	
	
	
	

	
	
	
	

	
	
	
	

	
	
	
	

	 (2)		
the date the Eligible Director reaches an age at which he or
she may earn unlimited amounts without penalty under the Social
Security Act and the regulations promulgated thereunder; or

– 6 –

	 	 	 
	 (3)		
such other date specified by the Eligible Director on the
election form (at least two years from the date deferral of
compensation begins).

Distribution of an Account may be made as a single payment or in regular annual
installments over a period of not more than 10 years.

      All distributions from the Elective Deferral portion of the Account will
be made in cash, denominated and payable in United States dollars, equal to the
amounts deferred and any gains or losses on those amounts, based on the
performance of the investment funds to which the Eligible Director allocated
his or her deferred compensation.

      The Eligible Director may change his or her Elective Deferral distribution
instructions by subsequent written notice to the Secretary, but any such change
will apply only to future deferrals. If an Eligible Director should fail to
give the Secretary instructions as to the type of distribution preferred, his
or her Account will be distributed as a single payment as soon as practicable
following the date on which he or she ceases to hold office as a Director of
the Company.

SECTION 10.  Acceleration of
Account Distribution Due to Unforeseeable Emergency.

      An Eligible Director will be permitted to receive distribution of all or a
part of the Elective Deferral portion of his or her Account if the Committee
determines that an unforeseeable emergency has occurred. An unforeseeable
emergency is one that is caused by an event beyond the Eligible Director’s
control and that would cause severe financial hardship to him or her if the
distribution of all or a part of the Elective Deferral portion of his or her
Account were not approved. Any distribution approved under this provision
shall be limited to the amount deemed necessary to meet the emergency.

– 7 –

SECTION 11.  Death of Eligible Director; Distribution of Account Balance.

      In the event of the death of an Eligible Director before he or she has
received full distribution of his or her Account, the value of the Account
balance remaining to be distributed shall be determined as of the Valuation
Date coincident with or immediately following the Eligible Director’s death.
The Account balance shall, as soon as practicable, be distributed in a single
payment to the beneficiary or beneficiaries designated by the Eligible
Director. In the event that an Eligible Director has failed to name a
beneficiary, his or her Account balance shall be distributed to his or her
estate.

SECTION 12.  Acceleration of Account Distribution Due to Change in Control.

      In the event of a change in control of the Company, an Eligible Director’s
Account balance may become subject to immediate distribution in accordance with
the Eligible Director’s election instructions; provided, however, that the
Eligible Director specifically stipulated on his or her election form that such
accelerated payout be made. For purposes of this Plan, a change in control, as
defined in resolutions adopted by the Compensation and Stock Option Committee
of the Directors of the Company on July 26, 1989, will be deemed to have
occurred if:

	 	 	 
	 (i)		
the Corporation is merged or consolidated or
reorganized into or with another corporation or other legal
person and as a result of such merger, consolidation or
reorganization less than 51 percent of the combined voting
power of the then-outstanding securities of such corporation
or person immediately after such transaction is held in the
aggregate by the holders of Voting Stock (“Voting Stock”
consists of the then-outstanding securities entitled to vote
generally in the election of Directors of the Corporation)
immediately prior to such transaction;
	
	
	
	

	
	
	
	

	
	
	
	

	 (ii)		
the Corporation sells or otherwise transfers all or
substantially all of its assets to any other corporation or
other legal person if less than 51 percent of the combined
voting power of the then-outstanding voting securities of
such corporation or person immediately after such sale or
transfer is held in the aggregate

– 8 –

	 	 	 
			
by the holders of Voting
Stock immediately prior to such sale or transfer;
	
	
	
	

	
	
	
	

	
	
	
	

	
	
	
	

	(iii)		
there is a report filed on Schedule 13D or Schedule
14D-1 (or any successor schedule, form or report), each as
promulgated pursuant to the Securities Exchange Act of 1934
(the “Exchange Act”), disclosing that any person (as the term
“person” is used in Section 13(d)(3) or Section 14(d)(2) of
the Exchange Act) has become the beneficial owner (as the
term “beneficial owner” is defined under Rule 13d-3 or any
successor rule or regulation promulgated under the Exchange
Act) of securities representing 20 percent or more of the
combined voting power of the Voting Stock;
	
	
	
	

	
	
	
	

	
	
	
	

	
	
	
	

	(iv)		
the Corporation shall file a report or proxy statement
with the Securities and Exchange Commission pursuant to the
Exchange Act disclosing in response to Item 1 of Form 8-K
thereunder or Item 6(e) of Schedule 14A thereunder (or any
successor schedule, form or report or item therein) that a
change in control of the Corporation has or may have occurred
or will or may occur in the future pursuant to any
then-existing contract or transaction; or
	
	
	
	

	
	
	
	

	
	
	
	

	
	
	
	

	(v)		
during any period of two consecutive years,
individuals who at the beginning of any such period
constitute the Directors of the Corporation cease for any
reason to constitute at least a majority thereof unless the
election, or the nomination for election by the Corporation’s
shareholders, of each Director of the Corporation first
elected during such period was approved by a vote of at least
two-thirds of the Directors of the Corporation then still in
office who were Directors of the Corporation at the beginning
of any such period.

	 	 
		Notwithstanding the foregoing definition, a “change in control”
shall not be deemed to have occurred solely because (i) the
Corporation, (ii) an entity in which the Corporation directly or
indirectly beneficially owns more that 50 percent of the voting
securities or (iii) any employee stock ownership plan sponsored by
the Corporation or any other employee benefit plan of the
Corporation, or any entity holding shares of Voting Stock for or
pursuant to the terms of any such plan, either files or becomes
obligated to file a report or a proxy statement under or in
response to Schedule 13D, Schedule 14D-1, Item 1 of Form 8-K or
Item 6(e) of Schedule 14A (or any successor schedule, form or
report or item therein) under the Exchange Act, disclosing
beneficial ownership by it of shares of

– 9 –

	 	 
		Voting Stock, whether in
excess of 20 percent or otherwise, or because the Corporation
reports that a change in control of the Corporation has or may
have occurred or will or may occur in the future by reason of such
beneficial ownership...

SECTION 13.  Eligible Directors’ Rights Unsecured.

      This Plan is deemed unfunded for tax purposes and is not governed by the
Employee Retirement Income Security Act of 1974. Consequently, for purposes of
this Plan, no assets shall be segregated and placed beyond the reach of the
Company’s general creditors. The right of an Eligible Director to receive
future installments under the provisions of this Plan shall be an unsecured
claim against the general assets of the Company. Accordingly, the Eligible
Directors will have the status of general unsecured creditors of the Company,
and the Plan constitutes a mere promise by the Company to make Account
distributions in the future.

SECTION 14.  Assignability.

      The right of the Eligible Director, or of his or her beneficiary, to
receive distribution of his or her Account pursuant to the provisions of this
Plan are not subject in any manner to anticipation, alienation, sale, transfer,
assignment, pledge, encumbrance, attachment or garnishment by creditors of the
Eligible Director, or of his or her beneficiary, except by will or by the laws
of descent and distribution.

SECTION 15.  Amendment.

      This Plan may at any time or from time to time be amended, modified or
terminated by the Directors or the Executive Committee of the Directors of the
Company. No amendment, modification or termination shall adversely affect an
Eligible Director’s Account, without his or her consent.

– 10 –EX-10(T) TRW Inc. Deferred Compensation Plan

Exhibit 10(t)

TRW INC.

DEFERRED COMPENSATION PLAN

      THIS AMENDED AND RESTATED PLAN, established by TRW Inc. (“TRW”) effective
July 28, 1993, and as amended from time to time, including this amendment and
restatement effective January 1, 2001, is for the benefit of certain employees
of the Corporation in executive, managerial or professional capacities so as to
enhance the Corporation’s ability to attract and retain outstanding employees
who are expected to contribute to its success. It shall remain in effect, as
it may be amended from time to time, until termination as provided in Article
VII of the Plan.

ARTICLE I

DEFINITIONS

For the purposes of the Plan, the following words and phrases shall mean:

1.1 Account. The bookkeeping or accounting records maintained (having and
requiring no segregation or holding of any assets) by TRW or the Service
Provider pursuant to Article IV with respect to and resulting from a
Participant’s Deferral Election.

1.2 Affiliate.

		
	 	      (a) Any corporation incorporated under the laws of one of the United
States of America of which TRW owns, directly or indirectly, in excess of
50% of the combined voting power of all classes of stock or in excess of
50% of the total value of the shares of all classes of stock (all within
the meaning of §1563 of the Code);

		
	 	      (b) any partnership or other business entity organized under such
laws, in which TRW owns, directly or indirectly, (i) in excess of 50% of
the total capital or profits interest of such partnership, or (ii) in
excess of 50% or more of the total value of such other business entity
(all within the meaning of §414(c) of the Code); and

		
	 	      (c) any other company designated as an Affiliate by the Committee.

1.3 Beneficiary. The person, persons or entity entitled under Article VI to
receive any Plan Benefits payable after a Participant’s death.

1.4 Code. The Internal Revenue Code of 1986, as amended. References in the
Plan to Sections of the Code are to such Sections as in effect on the Effective
Date or any successor provision.

 

1.5 Committee. The Compensation Committee of the Directors.

1.6 Corporation. TRW or an Affiliate of TRW.

1.7 Date of Deposit. The Determination Date immediately preceding the date
that, but for the Deferral Election, the Incentive Compensation would be paid.

1.8 Deferral Election. An election pursuant to Article III by an Eligible
Employee to defer receipt of all or part of his Incentive Compensation.

1.9 Deferred Compensation. The portion of Incentive Compensation which an
Eligible Employee elects to defer pursuant to a Participation Agreement.

1.10 Determination Date. Daily.

1.11 Directors. The Directors of TRW.

1.12 Effective Date. July 28, 1993, the effective date of the establishment of the Plan.

1.13 Eligible Employee. (a) A person (who must be a U.S. resident on a U.S.
payroll of the Corporation) in the full-time active salary employ of the
Corporation who is employed at Operational Incentive Plan Level III or above at
the end of the year for which a Deferral Election applies; or (b) a person who
is employed at Operational Incentive Plan Level III or above on the U.S.
payroll of either TRW Overseas Inc. or TRW Systems Overseas Inc. at the end of
the year for which a Deferral Election applies, or (c) a person who would
qualify under clause (a) or (b) above but for the fact that such person retires
or is terminated due to a divestiture after executing a valid Deferral Election
in the year the retirement or termination is effective.

1.14 Executive Officer. Any Eligible Employee who is an “executive officer” of
TRW for the purposes of 
Rule 3b-7 under the Securities Exchange Act of 1934.

1.15 Financial Hardship. A severe financial hardship to the Participant
resulting from a sudden and unexpected illness or accident of the Participant
or of a dependent (as defined in §152(a) of the Code) of the Participant, loss
of the Participant’s property due to casualty, or other similar extraordinary
and unforeseeable circumstance arising as a result of events beyond the control
of the Participant. In case of the Participant’s death, the word “Beneficiary
or other person or entity entitled to receive a Plan Benefit” shall be
substituted for the word “Participant” wherever the latter appears in this
Section 1.15.

1.16 Highly-Paid Employee. A person in the full-time active salary employ of
the Corporation who (i) will earn, in salary and in bonus (assuming full year
employment and no deferral of compensation), at least $170,000 (or such greater
or lesser sum if the qualified benefit plan limitation is changed by the
Internal Revenue Service) in the

2

year of the Deferral Election or (ii) is already a participant in TRW’s
supplemental nonqualified benefit plans or (iii) is an Operational Incentive
Plan Level III or above employee and is on the U.S. payroll of either TRW
Overseas Inc. or TRW Systems Overseas Inc.

1.17 Incentive Bonus. A cash award payable to an Eligible Employee under TRW’s
Operational Incentive Plan (or similar compensation program that replaces the
Operational Incentive Plan).

1.18 Incentive Compensation. Any cash award payable to an Eligible Employee as
an Incentive Bonus or, if applicable, a Strategic Grant that, but for a
Deferral Election under the Plan, would be paid to the Eligible Employee and
considered to be “wages” for purposes of United States federal income tax
withholding (or other appropriate jurisdiction).

1.19 Interest Rate or Interest. One-twelfth of the annual interest rate, equal
to 110% of the applicable long-term federal rate as published by the Internal
Revenue Service pursuant to Code §1274(d) or any successor provision and in
effect on the first business day of each calendar month.

1.20 Investment Fund Returns. The gains or losses in one or more of the
investment funds offered to participants under the TRW Employee Stock Ownership
and Savings Plan, any of which shall be available to any Participant for
purposes of having such investment fund results credited to his Account under
this Plan; provided, however, that effective July 1, 2000, any changes to the
investment funds offered to participants under the TRW Employee Stock Ownership
and Savings Plan will result in a change to the investment options available
under the Plan 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 TRW Employee Stock Ownership and
Savings Plan effective July 5, 2000, will not be made available as an
investment option under the Plan.

1.21 Participant. An Eligible Employee who has elected to participate in the
Plan and has executed and filed with TRW (or, if TRW has designated a Service
Provider for such purpose, that Service Provider) a Participation Agreement as
provided in Article III; provided, however, that such term shall include a
person who no longer has an effective Deferral Election so long as he retains,
under the Plan, an interest in an Account under the Plan.

1.22 Participant Agreement. An agreement between TRW and a Participant setting
forth the Participant’s Deferral Election.

1.23 Plan. This Deferred Compensation Plan, as it may be amended from time to
time.

3

1.24 Plan Benefit. The benefit payable to a Participant in accordance with
Article V hereof.

1.25 Plan Year. Each of the twelve month periods ending December 31 and
occurring while the Plan remains in effect. The term “Plan Year” shall also
include the period beginning on the Effective Date and ending December 31,
1993, and any period of less than twelve months beginning January 1 and ending
on the date the Plan is terminated.

1.26 Pre-Retirement Payment Sub-Account. A Sub-Account of a Participant’s
Account, established pursuant to Section 4.3, to which there shall be credited
Deferred Compensation under a single Deferral Election, and all Interest and/or
Investment Fund Returns accrued thereon or charged thereto, as to which the
Participant has elected payment of his Plan Benefit in either five years or ten
years from the Date of Deposit; provided, however, that if two Pre-Retirement
Payment Sub-Accounts provide for Plan Benefits to be payable in the same year,
both such Pre-Retirement Payment Sub-Accounts shall be considered a single
Pre-Retirement Payment Sub-Account for purposes of Sections 3.1(b)(iii), 3.3,
4.4 and 4.5.

1.27 Retirement Payment Sub-Account. A Sub-Account of a Participant’s Account,
established pursuant to Section 4.3, to which there shall be credited Deferred
Compensation under all Deferral Elections, and all Interest and/or Investment
Fund Returns accrued thereon or charged thereto, as to which the Plan Benefit
is intended to be payable following retirement of the Participant from the
Corporation.

1.28 Service Provider. Putnam Fiduciary Trust Company, or such other entity
selected by the Committee or the Special Committee to perform certain
recordkeeping, administrative, communication and/or other functions related to
the Plan.

1.29 Special Committee. The committee composed of the head of Human Resources,
the General Counsel and the Chief Financial Officer of TRW, which committee
reviews and acts upon the requests of Participants (other than Participants who
are Executive Officers, whose requests are acted upon by the Committee) to
receive early payout as a result of a Financial Hardship or to change payout
upon retirement.

1.30 Strategic Grant. A cash award and/or performance unit payable to an
Eligible Employee pursuant to TRW’s Strategic Incentive Program (or similar
long-term compensation plan that replaces or augments the Strategic Incentive
Program).

1.31 Sub-Account. A Pre-Retirement Payment Sub-Account or a Retirement Payment
Sub-Account.

1.32 Termination of Employment. Any severance of a Participant from full-time
active salaried employment by the Corporation for any reason (other than a
transfer of

4

employment from TRW to an Affiliate, from an Affiliate to another Affiliate or
from an Affiliate to TRW).

1.33 TRW. TRW Inc., an Ohio corporation.

ARTICLE II

ADMINISTRATION

2.1 Administrators. The Plan shall be administered by the Committee and the
Special Committee, and certain decisions concerning Financial Hardship and
change in payment upon retirement may be made by the Special Committee. Except
as otherwise provided herein, decisions of the Committee or the Special
Committee shall be final and binding on all parties.

2.2 Committee. The Committee shall have the authority (a) to make, amend,
interpret and enforce all rules and regulations for the administration of the
Plan and (b) to decide all questions, including interpretation of the Plan as
may arise in connection with the Plan insofar as it is applicable to
Participants (i) who are Executive Officers or (ii) with respect to whom
questions are referred to the Committee by the head of Human Resources. A
majority of the members of the Committee shall constitute a quorum. The
Committee may act by a vote of a majority of a quorum at a meeting or by a
writing signed by a majority of the members of the Committee.

2.3 Human Resources. The head of Human Resources shall administer the Plan in
accordance with the terms of the Plan and the rules and regulations of the Plan
as established by the Committee. Consistent with the authorized precedents and
the rules and regulations authorized by the Committee, the head of Human
Resources shall have the authority to decide all questions, including
interpretations of the Plan, as may arise in connection with the Plan insofar
as it is applicable to Participants other than Executive Officers.

2.4 Special Committee. With regard to all Participants, other than
Participants who are Executive Officers, the Special Committee shall act upon
(i) written requests of Participants concerning early payout of some or all of
the Participant’s Account balances as a result of Financial Hardship and (ii)
written requests of Participants to change the payout of a Participant’s
Retirement Payment Sub-Account as provided by Section 5.1(b). The Special
Committee may act by a vote of the majority at a meeting or by a writing signed
by a majority of the members of the Special Committee.

2.5 Financial Hardship and Retirement Payout Change Requests. In order for a
request to be considered by the Special Committee (or, in the case of a request
as set forth in clauses (i) or (ii) of Section 2.4 by an Executive Officer, the
Committee), the requests must (i) be in writing and delivered to the head of
Human Resources, (ii) set forth whether the Participant is requesting an early
payout because of a Financial Hardship or a change of payout upon retirement,
(iii) set forth the reasons for such

5

request, including in detail the Financial Hardship or the circumstances that
necessitate the change of payout upon retirement, (iv) in the case of a request
as a result of a Financial Hardship set forth the amount of such Participant’s
Account that the Participant wishes to be paid and the Sub-Accounts from which
such early payout shall be made and (v) in the case of a change of payout at
retirement set forth the manner in which the Participant wishes to receive
payout (e.g., single sum or in annual installments from two to ten years).
Compliance with the petition procedures set forth in this Section 2.5 does not
insure that the request will be granted by the Special Committee (or the
Committee).

ARTICLE III

PARTICIPATION

3.1 Participation.

		
	 	      (a) Subject to the limitations set forth in this Article III, any
person who is an Eligible Employee in the year for which the Incentive
Compensation deferred under a Deferral Election under this Section 3.1 is
payable may participate in the Plan by executing and filing with the head
of Human Resources (or, if indicated by TRW, the Service Provider) a
Participation Agreement; provided, however, the election to defer
Incentive Bonus will not be effective unless the Eligible Employee is
also a Highly-Paid Employee. The head of Human Resources shall
determine, in his sole discretion, which Eligible Employees are likely to
be Highly-Paid Employees during the year in which the Deferral Election
is made. The head of Human Resources shall then notify Eligible
Employees whether their elections to defer Incentive Bonuses are
effective.

		
	 	      (b) In each Participation Agreement, the Eligible Employee shall
specify:

		
	 	      (i) the percentage of Incentive Bonus and the percentage of
Strategic Grant in respect of a specified TRW fiscal year to be
deferred;
	 
	 	      (ii) subject to the limitations of Section 5.1, the form of
Plan Benefit (i.e., whether such benefits are intended to be paid
following retirement or five or ten years from the Date of
Deposit);
	 
	 	      (iii) the Investment Fund Returns and/or Interest Rate to be
credited to the Participant’s entire Sub-Account applicable to the
payout year, or, if the deferred amount is to be paid out following
retirement, the entire Retirement Payment Sub-Account (if the
Eligible Employee does not specify such matters, 100% of the amount
deferred for such fiscal year and all amounts in the applicable
Sub-Account with the same payout

6

		
	 	      year, or the Retirement Payment Sub-Account, as the case may
be, shall be credited with the Interest Rate).

		
	 	If the Eligible Employee has chosen to have Deferred Compensation paid
five or ten years from the Date of Deposit, such payments shall be made
as provided in Section 5.1(e) below.

		
	 	      (c) Before September 30 of each Plan Year, each Eligible Employee
who elects to become a Participant shall file with the head of Human
Resources or the Service Provider, if indicated by TRW, a Participation
Agreement specifying the items identified in paragraph (b) above.

3.2 Deferral Elections. Subject to the restrictions concerning deferral of
Incentive Bonus set forth in Section 3.1(a), any Eligible Employee may elect to
defer any percentage of each of his Strategic Grant and his Incentive Bonus;
provided, however, that, to the extent that the Eligible Employee chooses to
defer a percentage of his Incentive Bonus and/or Strategic Bonus, each Deferral
Election, to be effective, must be in increments of 1% for each of the
Strategic Grant and Incentive Bonus, which election percentages do not need to
be identical (provided that an Eligible Employee may elect to defer a portion
of his Incentive Bonus and none of his Strategic Grant and vice versa).

3.3 Modification of Deferral Election. By notice to TRW (or, the Service
Provider, if designated by TRW), in the manner specified by TRW, a Deferral
Election filed in any Plan Year may be modified or revoked at any time prior to
October 1 of such Plan Year. Thereafter, a Deferral Election specified in a
Participation Agreement shall be irrevocable, except that the Committee or the
Special Committee, as appropriate under Article II, may permit a Participant at
any time prior to the actual deferral of the Incentive Compensation to reduce
the designated percentage to be deferred upon a finding, based upon uniform
standards established by the Committee, that the Participant has suffered a
Financial Hardship. A Participant may change his or her elections made
pursuant to 3.1(b)(iii) for a particular Deferral Election at any time prior to
February 1 of the year in which the Incentive Compensation is actually deferred
by communicating such changes to TRW or, if designated by TRW, to the Service
Provider, in the manner specified by TRW.

ARTICLE IV

DEFERRED COMPENSATION

4.1 Deferred Compensation. The amount of Incentive Compensation deferred
pursuant to a Deferral Election shall be withheld in a single sum at the time
such Incentive Compensation, but for a Deferral Election, would be paid.

4.2 Withholding of Taxes and SSP/BEP Contributions. Any withholding of taxes
or other amounts which is required by any federal, state, or local law shall be
withheld

7

from the Participant’s remaining undeferred Incentive Compensation, if any. If
necessary in order to comply with any federal, state or local law, the amount
of Incentive Compensation deferred may be reduced by an amount equal to any
required withholding. Otherwise, such withholding may be made from any of the
Participant’s other compensation payable by the Corporation, or, at the
election of the head of Human Resources, a Participant may be permitted to pay
to the Corporation the amount of any such required withholding at or prior to
the time such withholding would otherwise be required to be made. In addition,
the amount of Incentive Compensation deferred shall be reduced by the amount of
TRW Stock Savings Plan and Benefits Equalization Plan contributions to be made
by the Eligible Employee on account of such Incentive Compensation.

4.3 Accounts. For recordkeeping purposes only, a separate Account shall be
established and maintained by TRW for each Participant to which his Deferred
Compensation and Investment Fund Returns or Interest accrued thereon pursuant
to Section 4.5 shall be credited (or charged). Each such Account shall be
divided into the following Sub-Accounts for purposes of Section 5.1: (i) a
Retirement Payment Sub-Account to which there shall be credited all Incentive
Compensation deferred (and all Investment Fund Returns or Interest thereon)
pursuant to all Deferral Elections under which a Plan Benefit is payable the
year following retirement; and (ii) a separate Pre-Retirement Payment
Sub-Account for each Deferral Election under which the Participant has elected
that his Plan Benefit be payable five or ten years from the Date of Deposit, to
which the Incentive Compensation deferred (and all Investment Fund Returns or
Interest thereon) pursuant to such Deferral Election shall be credited.

4.4 Interest and Investment Fund Return Changes. A Participant may, on a daily
basis, revise the Investment Fund Returns and/or Interest Rate to be credited
to any of such Participant’s Sub-Accounts on a daily basis by communicating
such changes to TRW or, if TRW has selected a Service Provider, to the Service
Provider, in the manner communicated from time to time by TRW to the
Participant. Such elections must be made in increments of 1%. Such changes
shall take effect in accordance with the timeframes established by TRW or the
Service Provider, as the case may be.

4.5 Determination of Account. The value of each Participant’s Account as of
each Determination Date shall be the total of the Participant’s Retirement
Payment and Pre-Retirement Payment Sub-Accounts. The value of each such
Sub-Account shall consist of (i) the balance of such Sub-Account as of the last
preceding Determination Date plus (ii) any Deferred Compensation credited to
such Sub-Account since the last preceding Determination Date, (iii) adjusted
for Investment Fund Returns or Interest since the last preceding Determination
Date based upon the Investment Fund Returns or Interest Rate selected by the
Participant under this Plan; provided, however, that interest and dividend
performance under PIMCO Total Return Fund and PRIMCO Stable Value Fund will be
accrued daily and credited monthly, less (iv) the amount of all Plan Benefits,
if any, paid during the period since the last preceding Determination Date;
provided, however, that for any payment of a Plan Benefit payable pursuant to
Article V during the month of January, the value of each Sub-Account shall be
calculated as of

8

the December 31 preceding the date of payment, and Investment Fund Returns or
Interest on the amount paid out shall cease to accrue as of such December 31.
For new allocations of Deferred Compensation deferred to a Participant’s
Account in the month of February, Investment Fund Returns and Interest will be
credited retroactive to February 1.

4.6 Statement of Accounts. TRW shall submit or cause the Service Provider to
submit to each Participant, no less frequently than quarterly, within a
reasonable period after the end of each calendar quarter, a statement setting
forth the total balance of the Participant’s Account, and the balance of each
Sub-Account thereof, as of the last day of such quarter, the Deferred
Compensation and Investment Fund Returns credited or charged, or Interest
accrued thereon, to each Sub-Account during the quarter and the payments of the
Plan Benefits from each Sub-Account during the quarter.

ARTICLE V

PLAN BENEFITS

5.1 Plan Benefits Payable on Termination of Employment, Five Years from Date of
Deposit or Ten Years from Date of Deposit.

		
	 	      (a) Subject to the provisions of Section 5.1(b) and except as
otherwise provided below, upon Termination of Employment a Participant
shall receive a Plan Benefit equal to the balance of his Account as of
the Determination Date immediately preceding such Termination of
Employment, plus the amount of any Deferred Compensation credited his
Account after such Determination Date, plus the gains or losses on the
balance of his Account for the period from the Determination Date
immediately preceding such Termination of Employment through the December
31 preceding the date of payment based upon the applicable Investment
Fund Returns or Interest Rate. Such Plan Benefit shall be payable as a
single sum during the January following such Termination of Employment.
However, in the event that the Termination of Employment is the result of
a divestiture of the unit or operations of the Corporation where the
Participant worked prior to Termination of Employment and the Participant
obtains employment with the entity that acquired such unit or operations,
then the balance of such Participant’s Account shall be payable in
accordance with such Participant’s original Deferral Election or in one
lump sum the January following such Participant’s termination of
employment from such entity (or its successor), whichever occurs first.
Such Participant’s Account shall continue to be credited or charged with
Investment Fund Returns or accrued Interest following such Participant’s
Termination of Employment through the December 31 preceding payment in
full of his or her Account.

		
	 	      (b) In the event that a Participant’s Termination of Employment
occurs as a result of his retirement, the Participant shall receive the
Plan Benefit payable in respect of his Retirement Payment Sub-Account in
ten annual

9

		
	 	installments commencing in the year following the year that
Termination of Employment occurred; provided, however, that the
Participant can petition the Special Committee (or the Committee in the
case of an Executive Officer) at any time at least two months prior to
retirement to change such payment into annual installments from two to
ten years or a single sum; further provided, that any such payment change
approved by the Special Committee (or the Committee) shall not be
effective until the calendar year following the date of the payment
change; provided further, however, that if the amount in the Retirement
Payment Sub-Account is less than $5,000 valued at December 31 of any
year, the balance in the Retirement Payment Sub-Account shall be paid in
a lump sum in the January following retirement or any January thereafter
in which such Participant’s Retirement Payment Sub-Account falls below
$5,000. In the event that payment shall be made in a single sum, such
payment shall be in accordance with the procedures set forth in Section
5.1(a) above, but in no event in the same calendar year as the year of
any requested change and no earlier than January 1 of the calendar year
following the year that Termination of Employment occurred. In the event
that the payment shall be made in installments, such payments shall be
made in accordance with Section 5.1(f) below. If, at the time of
retirement, the Participant has a credit in a Pre-Retirement Payment
Sub-Account, such Sub-Account balances shall be paid in accordance with
the Participant’s original Deferral Election. In the event of death of a
Participant after payouts have begun from such Participant’s Retirement
Payment Sub-Account, payouts will continue to be made to the beneficiary
or estate until paid out completely, subject to the third provision of
the first sentence of this Section 5.1(b).

		
	 	      (c) In the event that a Participant’s Termination of Employment
occurs as a result of a layoff, the Participant shall receive a Plan
Benefit equal to the balance of his Account as of the Determination Date
immediately preceding such Termination of Employment, plus the amount of
any Deferred Compensation credited his Account after such Determination
Date, payable in one lump sum during the January following the date that
is 12 months following Participant’s Termination of Employment. The
Participant’s Account shall be credited with gains or losses on the
balance of his Account for the period from such Determination Date
through the December 31 preceding the date of payment based upon the
applicable Investment Fund Returns or Interest Rate. If the Participant
retires during the 12-month period following his Termination of
Employment, the Plan Benefit to which he is entitled shall be calculated
and paid in accordance with Section 5.1(b).

		
	 	      (d) In the event that a Participant’s Termination of Employment
occurs because of his death, his Beneficiary or, if no designated
Beneficiary shall survive him, his estate shall receive the Plan Benefit
in the manner provided in Section 5.1(a).

10

		
	 	      (e) If the Participant has chosen in his Deferral Election to
receive payouts either five or ten years from the Date of Deposit (as
opposed to upon retirement from the Corporation), payments shall be made
in a single sum form from each Pre-Retirement Payment Sub-Account of the
Participant by the end of January of the year either five or ten years
(depending upon the applicable Deferral Election) following the
applicable Date of Deposit; provided, however, that if Termination of
Employment has occurred prior to payment (other than as a result of
retirement), payment of the Participant’s Plan Benefits shall be made as
provided in Section 5.1(a).

		
	 	      (f) If the payments from the Participant’s Retirement Payment
Sub-Account are to be paid in installment form, such installments shall
be paid in ten annual installments (or in such number of annual
installments approved by the Special Committee or the Committee pursuant
to Section 2.5) by the end of January of each year in which an
installment is to be made. Installment payments will commence in the
year following the Participant’s Termination of Employment. If annual
installments are paid, the balance of the Account shall continue to be
credited or charged with Investment Fund Returns or Interest as
previously elected by the Participant in accordance with Section 3.1(b)
or as most recently revised pursuant to Section 4.4.

5.2 Withdrawal of Plan Benefit. No Plan Benefit shall be payable prior to the
Participant’s Termination of Employment other than in the form determined
pursuant to Section 5.1(e), except that the Committee or the Special Committee,
as appropriate under Article II, may permit a Participant or, after a
Participant’s death, a Participant’s Beneficiary or other person or entity
entitled to receive such Plan Benefit, to withdraw from the Participant’s
Account an amount necessary to meet a Financial Hardship.

5.3 Withholding; Payroll Taxes. TRW shall withhold from Plan Benefits payable
under the Plan any taxes required to be withheld from an employee’s wages for
the federal or any state or local governments.

5.4 Full Payment of Benefits. Notwithstanding any other provision of the Plan,
all Plan Benefits shall be paid to the Participant no later than the January 5
next preceding the Participant’s 80th birthday.

ARTICLE VI

BENEFICIARY DESIGNATION

6.1 Beneficiary Designation. Each Participant shall have the right, at any
time, to designate any person or persons as his Beneficiary (both principal as
well as contingent) to whom payment under the Plan shall be made in the event
of his death prior to complete distribution of all Plan Benefits due him under
the Plan. Any Beneficiary designation shall be made in writing on a form
prescribed by the Committee and shall become effective only when filed with the
head of Human Resources.

11

6.2 Amendments. Subject to the limitations of Section 6.1 of the Plan, any
Beneficiary designation may be changed by a Participant only by written notice
of such change to the head of Human Resources on a form prescribed by the
Committee. The filing of a new Beneficiary designation form will cancel all
prior Beneficiary designations.

6.3 Absence of Effective Beneficiary Designation. If a Participant fails to
designate a Beneficiary as provided above or if all designated Beneficiaries
predecease the Participant or die prior to complete distribution of the
Participant’s Plan Benefit, the Participant’s remaining Plan Benefit shall be
paid to his estate.

6.4 Effect of Payment. Payment to the Beneficiary designated pursuant to
Sections 6.1 and 6.2 or to the Participant’s estate pursuant to Section 6.3
shall completely discharge TRW’s obligations under the Plan.

ARTICLE VII

AMENDMENT AND TERMINATION OF PLAN

7.1 Termination. The Committee shall have the power in its sole discretion to
suspend or terminate the Plan at any time, except that no such action shall
adversely affect rights with respect to any Account without the consent of the
person affected.

7.2 Amendment. The Committee can amend any part of this Plan (including,
without limitation, changing the Interest Rate or Investment Fund Returns to be
paid to current and future Participants or changing who can become
Participants) in its sole discretion without notice to Participants.

ARTICLE VIII

MISCELLANEOUS

8.1 Unfunded Plan. The Plan is an unfunded plan maintained by TRW primarily to
provide Deferred Compensation benefits for a select group of executive,
managerial or professional employees of the Corporation.

8.2 Unsecured General Creditor. Participants and their Beneficiaries, estates,
heirs, successors and assigns shall have no legal or equitable rights, interest
or claims in any property or assets of TRW. Such assets of TRW shall not be
held under any trust or in any other way as collateral security for the
fulfillment of the obligations of TRW under the Plan. Any and all of TRW’s
assets shall be, and remain, the general, unpledged, unrestricted assets of
TRW. TRW’s sole obligation under the Plan shall be merely that of an unfunded
and unsecured promise of TRW to pay money in the future.

8.3 Nonassignability. Neither a Participant nor any other person shall have
any right to commute, sell, assign, transfer, pledge, anticipate, mortgage or
otherwise

12

encumber, transfer, hypothecate or convey, in advance of actual receipt, any
Plan Benefit. Plan Benefits and all rights to Plan Benefits are and shall be
nonassignable and nontransferable prior to actual payment as provided by the
Plan. Any such attempted assignment or transfer shall be ineffective; TRW’s
sole obligation shall be to pay Plan Benefits to the Participant, his
Beneficiary or his estate as appropriate. No part of any Plan Benefit shall,
prior to actual payment as provided by the Plan, be subject to seizure or
sequestration for the payment of any debts, judgments, alimony or separate
maintenance owed by a Participant or any other person; nor shall any Plan
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 by law.

8.4 Not a Contract of Employment. Neither the terms and conditions of the Plan
nor those of any Participation Agreement shall be deemed to constitute a
contract of employment between the Corporation and the Participant, and neither
the Participant, his Beneficiary nor his estate shall have any rights against
TRW under the Plan except as may otherwise be specifically provided in the
Plan. Moreover, nothing in the Plan shall be deemed to give a Participant the
right to be retained in the service of the Corporation or to interfere with the
right of the Corporation to discipline, discharge or change the status of a
Participant at any time. Further, nothing in the Plan shall be deemed to give
a Participant a right to receive any Incentive Compensation.

8.5 Protective Provisions. A Participant will cooperate with TRW by furnishing
any and all information requested by TRW in order to facilitate the payment of
Plan Benefits under the Plan, and by taking such other action as may be
reasonably requested by TRW.

8.6 Terms. Whenever any words are used in the Plan in the masculine, they
shall be construed as though they were used in the feminine in all cases where
they would so apply; and wherever any words are used in the Plan in the
singular or in the plural, they shall be construed as though they were used in
the plural or singular, as the case may be, in all cases where they would so
apply.

8.7 Captions. The captions of the articles and sections of the Plan are for
convenience only and shall not control or affect the meaning or construction of
any of its provisions.

8.8. Governing Law. The provisions of the Plan shall be construed and
interpreted according to the laws of the State of Ohio.

8.9 Validity. In case any provision of the Plan shall be held illegal or
invalid for any reason, said illegality or invalidity shall not affect the
remaining provisions of the Plan, and the Plan shall be construed and enforced
as if such illegal or invalid provision were not included in the Plan.

8.10 Notice or Filing. Any notice or filing required or permitted to be given
to TRW or a Participant under the Plan shall be sufficient if in writing and
hand delivered, or sent

13

by regular mail or by registered or certified mail, to the principal office of
TRW or to the last known address of the Participant, as the case may be. Such
notice or filing shall be deemed given or made (i) when hand delivered to the
residence or offices of the recipient, (ii) as of five days after the date of
mailing if delivery is made by regular mail, or, (iii) as of five days after
the date shown on the postmark on the receipt for registration or certification
provided to the sender at the time of mailing, if by registered or certified
mail.

8.11 Successors. The provisions of the Plan shall bind and obligate TRW and
any successors. The term “successors” as used in this Section 8.11 shall
include any corporate or other business entity which shall, whether by merger,
consolidation, purchase or otherwise acquire all or substantially all of the
business and assets of TRW and successors of any such corporation or other
business entity.

8.12 Expenses and Costs. TRW shall bear all expenses and costs in connection
with the operation of the Plan.

8.13 Reliance on Certified Public Accountants. TRW, the Directors, the
Committee, the Special Committee, the head of Human Resources and any employee
of TRW or the Corporation shall be fully protected for actions taken in good
faith based on the computations and reports made pursuant to or in connection
with the Plan by the independent certified public accountants who audit TRW’s
accounts.

ARTICLE IX

CLAIMS PROCEDURE

9.1 Claim. Any person claiming a Plan Benefit, requesting an interpretation or
ruling under the Plan (other than a ruling under Section 2.5 above or the
determination as to whether an Eligible Employee is a Highly Paid Employee), or
requesting information under the Plan shall present the request in writing to
the head of Human Resources who (a) shall respond in writing within 90 days
following his receipt of the request or (b) in the case of a claimant who is an
Executive Officer, shall refer the claim with his recommended response to the
Committee, which shall respond in writing within 120 days following the receipt
of the request by the head of Human Resources.

9.2 Denial of Claim. If the claim or request is denied, the written notice of
denial shall state (i) the reasons for denial; (ii) a description of any
additional material or information required and an explanation of why it is
necessary; and (iii) an explanation of the Plan’s claim review procedure.

9.3 Review of Claim. Any person whose claim or request is denied may make a
second request for review by notice given in writing to the head of Human
Resources. The claim or request shall be reviewed further by the head of Human
Resources or the Committee, as appropriate, and he or it may, but shall not be
required to, grant the claimant a hearing.

14

9.4 Final Decision. A decision on such second request shall normally be made
within 60 days after the date of the second request. If an extension of time
is required for a hearing or other special circumstances, the claimant shall be
notified and the time limit shall be 120 days from the date of the second
request. The decision shall be in writing and, whether made by the head of
Human Resources or the Committee, shall be final and bind all parties
concerned.

15

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