Document:

exv10w14

 

GENERAL DYNAMICS CORPORATION

SUPPLEMENTAL RETIREMENT PLAN

Effective January 1 1983

and restated effective January 1, 2002

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page
	 	 	 	 	 	 	 
	SECTION 1	 	
INTRODUCTION AND PLAN HISTORY
	 	 	2	 
	 	 	 	 	 	 	 
	SECTION 2	 	
DEFINITIONS
	 	 	3	 
	 	 	 	 	 	 	 
	SECTION 3	 	
SUPPLEMENTAL BENEFITS DUE TO

LIMITATIONS UNDER DEFINED BENEFIT

PLANS
	 	 	5	 
	 	 	 	 	 	 	 
	SECTION 4	 	
SPECIAL SUPPLEMENTAL BENEFITS
	 	 	7	 
	 	 	 	 	 	 	 
	SECTION 5	 	
MISCELLANEOUS PROVISIONS
	 	 	8	 
	 	 	 	 	 	 	 
	SECTION 6	 	
AMENDMENT AND TERMINATION

OF PLAN
	 	 	11	 

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SECTION 1

INTRODUCTION AND PLAN HISTORY

1.01      Introduction. This Plan is maintained so as to strengthen the ability of
the Corporation to attract and retain persons of outstanding competence upon
which, in large measure, continued growth and profitability depend.

The Plan is intended to supplement any benefits that may be provided under any
plans of the Corporation and its Subsidiaries, as they may be in effect from
time to time, that are qualified under Section 401 of the Internal Revenue Code
of 1986. The Corporation shall not be required to fund, in any way, any of the
benefits provided under this Plan prior to the time payments become due to
persons hereunder.

The Plan is intended to be an excess benefit plan within the meanings of
Sections 3(36) and 201(7) of ERISA and an unfunded deferred compensation plan
for a select group of management or highly compensated employees within the
meanings of Sections 201(2), 301(a)(3) and 401(a)(4) of ERISA and shall be
construed and interpreted accordingly.

1.02      Effective Date. The Plan was established January 1, 1983, and previously
amended and restated as of January 1, 1989. The effective date of the
amendment and restatement of the Plan as set forth herein is January 1, 2002,
except as otherwise provided in the Plan or an Appendix attached to this
document.

1.03      Plan Appendices and Exhibits. From time to time, the Corporation may
adopt Exhibits to the Plan for the purpose of setting forth specific provisions
of this Plan. In addition, the Corporation may from time to time adopt
Appendices to this Plan for the purpose of providing documentation necessary to
determine benefits under the Plan for certain employee groups. Each such
Exhibit or Appendix shall be attached to and form a part of the Plan. Each
such Exhibit or Appendix shall specify the Employing Unit to which it applies
and shall supersede the provisions of the Plan document to the extent necessary
to eliminate any inconsistencies between the Plan document and such Exhibit or
Appendix.

1.04      Prior Provisions. The provisions of this Plan shall apply only to
Employees who shall terminate active employment on or after the effective date
of this Plan. Employees prior to January 1, 2002, who continue in active
employment after January 1, 2002, shall continue to maintain their rights and
benefits hereunder. The rights and benefits, if any, of an Employee who
terminates active employment prior to January 1, 2002 (including Employees who
were on layoff or were otherwise absent from service as of January 1, 2002 and
who do not return to active employment prior to their respective severance from
service dates), shall be determined in accordance with the provisions of the
plans as they were in effect on the date of such termination from active
employment except as specifically indicated herein.

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SECTION 2

DEFINITIONS

Where the following words and phrases appear in the Plan, they shall have the
respective meanings set forth below, unless the context clearly indicates to
the contrary. Some of the words and phrases used in the Plan are not defined
in this Section 2, but, for convenience, are defined as provided in an Appendix
or Exhibit or as they are introduced into the text.

2.01      Actuarial Equivalent Value. “Actuarial Equivalent Value” shall mean an
amount determined by an Actuary that is of the equivalent value to the
aggregate amounts expected to be received under different forms of payment
under the Plan and based on actuarial assumptions adopted under the Defined
Benefit Plan in which the Plan Participant benefits; provided however, for
purposes of determining a lump sum value where no lump sum payment option,
other than the small benefit cashouts described in Section S5.5 of the Master
Supplement Retirement Plan, is available under the Defined Benefit Plan, the
lump sum value shall be actuarially determined based on the 1984 Unisex Pension
mortality table (UP-84 Table) with 7% per annum compound interest.

2.02      Actuary. “Actuary” shall mean one or more actuaries chosen by the
Corporation, who shall be independent of the Corporation, and qualified through
Fellowship in the Society of Actuaries or a firm with such actuaries on its
staff.

2.03      Code. “Code” shall mean the Internal Revenue Code of 1986, as amended
from time to time.

2.04      Corporation. “Corporation” shall mean General Dynamics Corporation, a
Delaware corporation, and any successor thereof.

2.05      Defined Benefit Plan. “Defined Benefit Plan” shall mean any Retirement
Plan maintained by the Corporation or its Subsidiaries other than a Defined
Contribution Plan as its specific benefit structure is defined with respect to
a group of covered employees. Defined Benefit Plans covered by this Plan are
listed in Appendix A.

2.06      Defined Contribution Plan. “Defined Contribution Plan” shall mean a
Retirement Plan which provides for an individual account for each covered
Employee and for benefits based solely upon the amount contributed to the
Employee’s account, and any income, expenses, gains and losses, and any other
amounts which may be allocated to such account. This definition includes, but
is not limited to, the General Dynamics Savings and Stock Investment Plan and
Hourly Employee Savings and Stock Investment Plan and such other plans as may
be established from time to time.

2.07      Employee. “Employee” shall mean any person regularly employed as a
full-time salaried or hourly employee by the Corporation or its Subsidiaries in
any capacity including officers (and also including directors who regularly
render services to the Corporation or its Subsidiaries as

3

 

regular full-time employees), and who is not covered by a collective bargaining
agreement unless coverage under this Plan has been extended by negotiated
agreement to Employees covered by the terms of such agreements. Individuals
not initially treated and classified by the Corporation as common-law
employees, including, but not limited to, leased employees, independent
contractors or any other contract employees, shall be excluded from
participation irrespective of whether a court, administrative agency or other
entity determines that such individuals are common-law employees.

2.08      Employing Unit. “Employing Unit” shall mean any Subsidiary or affiliate
of the Corporation or any economic or organizational or locational division or
unit thereof which is set forth in the Appendices to the Plan.

2.09      ERISA. “ERISA” shall mean the Employee Retirement Income Security Act of
1974, as amended.

2.10      Participant. “Participant” shall mean an Employee who satisfied the
eligibility criteria described in Section 3.01, 4.01 or an Appendix.

2.11      Plan. “Plan” shall mean the Supplemental Retirement Plan effective
January 1, 1983, and restated as set forth herein effective January 1, 2002, as
it shall be amended from time to time and its Appendices and Exhibits.

2.12      Prior Plan. “Prior Plan” shall mean the General Dynamics Corporation
Supplemental Retirement Plan effective January 1, 1983, and restated January 1,
1989.

2.13      Retirement Plan. “Retirement Plan” shall mean any plan, fund, or program
which was heretofore or is hereafter established or maintained by the
Corporation and/or its Subsidiaries and which is qualified under Code Section
401 to the extent that by its express terms or as a result of surrounding
circumstances such plan, fund or program:

	 	(a)	 	provides retirement income to Employees; or
	 
	 	(b)	 	results in a deferral of income by Employees for periods
extending to the termination of covered employment or beyond,

regardless of the method of calculating the contributions made to the plan, the
method of calculating the benefits under the plan or the method of distributing
benefits from the plan.

2.14      Subsidiary. “Subsidiary” shall mean any subsidiary of the Corporation
authorized by the Corporation to participate in this Plan with respect to their
Employees and of which the Corporation owns, directly or indirectly eighty
percent (50%) or more of the outstanding voting stock.

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SECTION 3

SUPPLEMENTAL BENEFITS DUE TO LIMITATIONS

UNDER DEFINED BENEFIT PLANS

3.01      Participation. Eligibility for participation for any benefits provided
under this Section 3 shall be extended to Employees covered under a benefit
structure identified in Appendix A either who are members of a select group of
management or highly compensated employees with benefits payable under such
benefit structure restricted due to the limitations of Code Section 401(a)(17)
or whose benefits payable thereunder are restricted due to Code Section 415
limitations.

Notwithstanding the preceding paragraph, an Employee shall not be eligible for
a benefit under Section 3 if such Employee is eligible for benefits under an
Appendix (other than Appendix A) or an agreement with the Corporation or its
Subsidiaries where such Appendix or agreement provides benefits in lieu of
benefits described in this Section 3 unless such Appendix or agreement provides
otherwise.

3.02      Benefit. The benefit payable to or on behalf of a Participant eligible
under Section 3.01 shall be an amount equal to the excess, if any, of (a) over
(b) as follows:

	 	(a)	 	The total that would have been provided to the Participant
under the various Defined Benefit Plans of which he is a member
without regard to the limitations of Code Sections 415 or 401(a)(17)
and payable in the form of benefit elected by the Participant under
the Defined Benefit Plans in which he is a member.
	 
	 	(b)	 	The maximum benefit as determined under Code Sections 415 or
401(a)(17) actually payable in the form elected by the Participant
under the various Defined Benefit Plans of which he is a member.

However, calculation of this benefit shall reflect any restrictions and/or
modifications described
in Appendix A that may be applicable to the Participant.

3.03      Payment of Benefits. Except as otherwise described in the Appendix A, any
benefits payable pursuant to this Section 3 shall be paid under the same
conditions, restrictions and options as would apply to the benefits if they
were provided by the Defined Benefit Plans of which the Participant was a
member, at the time of his retirement, pursuant to the optional forms of
payment actually selected by the Participant under those Defined Benefit Plans.
Notwithstanding the preceding sentence and subject to Section 5.05, except as
otherwise provided in Appendix D, if the Defined Benefit Plan(s) of which the
Participant was a member permits a lump sum distribution option, a lump sum
shall be available to such Participant under this Plan only if the Participant
elects the lump sum distribution option prior to such Participant’s termination
of employment.

3.04      Modification. If, after commencement of monthly benefit payments under
the Plan, the amount of monthly payments to which the Participant is entitled
under the Defined Benefit Plan

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is increased by reason of an increase in the limitations under Code Section 415
or 401(a)(17), the amount of the monthly payments to which he is entitled under
the Plan will be decreased by the amount of monthly payment increase under the
Defined Benefit Plan.

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SECTION 4

SPECIAL SUPPLEMENTAL BENEFITS

4.01      Participation. Recognizing the need to make special retirement and other
compensation or employee benefit provisions for certain Employees of Employing
Units, the Corporation may, from time to time and in its best judgment,
designate groups of select management or highly compensated employees as being
eligible to receive additional benefits, substitute benefits, or more
restrictive benefits than are found in Section 3 of the Plan. Any such
Employees or groups of Employees shall be described in Appendices attached to
this Plan or in other agreements with the Corporation or its Subsidiaries.

Such Employees shall not be eligible for a benefit under Section 3.02 to the
extent such appendices or agreements provide for benefits in lieu of benefits
described in Section 3 unless such Appendix or agreement provides otherwise.
For those Employees with individual agreements, unless expressly provided in
the agreement, the provisions of this Plan shall not apply to the benefit
attributable to such agreement.

4.02      Benefits. Such benefits may be provided only to select management or
highly compensated employees in such amounts as the Corporation determines are
appropriate.

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SECTION 5

MISCELLANEOUS PROVISIONS

5.01      Construction. In the construction of the Plan the masculine shall include
the feminine and the singular shall include the plural in all cases where such
meanings would be appropriate. This Plan shall be construed, governed,
regulated, and administered according to the laws of the State of Virginia.

5.02      Employment. The Plan is not an employment contract. Participation in the
Plan shall not give any Employee the right to be retained in the employ of the
Corporation or its Subsidiaries, or upon dismissal or upon his voluntary
termination of employment, to have any right, legal or equitable, under the
Plan or any portion thereof, except as expressly granted by the Plan.

5.03      Non-alienability of Benefits. No benefit under the Plan shall be subject
in any manner to anticipation, alienation, sale, transfer, assignment, pledge,
encumbrance, or charge; and any attempt to anticipate, alienate, sell,
transfer, assign, pledge, encumber, or charge the same shall be void; and no
such benefit shall in any manner be liable for or subject to the debts,
liabilities, engagements, or torts of the person entitled to such benefit,
except as specifically provided in the Plan or pursuant to a Qualified Domestic
Relations Order as described in Code Section 414(p).

5.04      Facility of Payment. If any recipient of benefits is, in the judgment of
the Corporation, legally incapable of personally receiving and giving a valid
receipt for any payment due him under the Plan, the Corporation may, unless and
until claims shall have been made by a duly appointed guardian or committee of
such person, make such payment or any part thereof to such person’s spouse,
children, or other legal entity deemed by the Corporation to have incurred
expenses or assumed responsibility for the expenses of such person. Any
payment so made shall be a complete discharge of any liability under the Plan
for such payment.

5.05      Discretionary Payment of Benefits. In any instance in which the
Corporation in its sole and uncontrolled discretion believes such action to be
in the best interest of the party entitled to receive any payment provided by
this Plan, or to be in the best interests of the Corporation, amounts payable
in installments pursuant to the provisions of this Plan may be paid in a single
lump sum, the amount of which shall be of Actuarial Equivalent Value to the
benefits for which the lump sum is to be substituted. It is intended by this
Section 5.05 to vest the Corporation with full discretion to administer this
Plan and to determine when and under what circumstances deviations which
accelerate payments are necessary, desirable, or appropriate; and the
Corporation shall have full power to authorize such deviations as regards each
payee separately.

5.06      Obligation to Pay Amounts Hereunder.

	 	(a)	 	No trust fund, escrow account, or other segregation of assets
need be established or made by the Corporation to guarantee, secure,
or assure the payment of any amount payable hereunder. The
Corporation’s obligation to make payments pursuant to this Plan
shall constitute only a general contractual liability of the

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	 	 	 	Corporation to individuals entitled to benefits hereunder and other
actual or possible payees hereunder in accordance with the terms
hereof. Payments hereunder shall be made only from such funds of
the Corporation as it shall determine, and no individual entitled
to benefits hereunder shall have any interest in any particular
asset of the Corporation by reason of the existence of this Plan.
It is expressly understood as a condition for receipt of any
benefits under this Plan that the Corporation is not obligated to
create a trust fund or escrow account, or to segregate any asset of
the Corporation in any fashion.
	 
	 	(b)	 	The Corporation may, in its sole discretion, establish
segregated funds, escrow accounts, or trust funds whose primary
purpose would be for the provision of benefits under this Plan. If
such funds or accounts are established, however, individuals
entitled to benefits hereunder shall not have any identifiable
interest in any such funds or accounts nor shall such individuals be
entitled to any preference or priority with respect to the assets of
such funds or accounts. These funds and accounts would still be
available to judgment creditors of the Corporation and to all
creditors in the event of the Corporation’s insolvency or
bankruptcy.
	 
	 	(c)	 	A former Employee is not entitled to a benefit under this
Plan to the extent that the liability for such benefit has been
transferred to or assumed by a successor to all or any portion of
the business of General Dynamics Corporation.
	 
	 	(d)	 	Except as otherwise provided by Section 4, if an Employee who
is receiving or entitled to receive a benefit pursuant to the Plan
is reemployed with General Dynamics Corporation or an affiliate of
General Dynamics Corporation and, in connection with such
reemployment, his Defined Benefit Plan benefit payment is suspended,
his benefit under the Plan will be suspended for the same period.
The Employee’s benefit under the Plan will recommence at the same
time as his or her benefit under the Defined Benefit Plan and the
amount of the benefit at recommencement will be adjusted in
accordance with the provisions of the Plan to reflect any additional
benefits earned and benefits previously paid.

5.07      Administration. To the extent consistent with the purposes and provisions
of this Plan and as may be deemed necessary or advisable in the best judgment
of the Corporation, the Plan shall be operated under the Administrative and
General Provisions of the Defined Benefit Plans.

The Corporation shall make all determinations as to the right of any person to
a benefit. Any denial by the Corporation of a claim for benefits under the
Plan by a Participant shall be stated in writing by the Corporation and
delivered or mailed to such individual. Such notice shall set forth the
specific reasons for the denial, the specific reference to the provisions of
the Plan on which the denial is based, a description of any additional material
or information necessary to perfect the claim, an explanation of why such
material or information is necessary, and the right to appeal a denial of the
claim, for a full and fair review provided that a written request is made
therefore within seventy-five (75) days after receipt of written notice of the
denial of the claim, all in readily understandable language. Pertinent
documents may be reviewed and issues and

9

 

comments submitted in writing to the Corporation. If an appeal shall be made,
the final decision shall be made within a period of sixty (60) days following
receipt of the appeal, unless special circumstances require an extension of
time for processing, in which case the decision shall be rendered as soon as
possible, but not later than one hundred twenty (120) days after receipt of
such appeal.

Unless otherwise provided by the Corporation, the Corporation’s Employee
Benefit Appeals Committee shall rule in place of the Corporation and the
Committee’s ruling shall be the final decision of the Corporation. Benefits
shall be paid under the Plan only if the Corporation or Corporation’s Employee
Benefit Appeals Committee in its sole discretion, determines that a Participant
is entitled to them. There shall be no duplication of benefits between this
Plan and its Appendices and any other plan or agreement with the Corporation or
its Subsidiaries for the same period of service unless otherwise specifically
stated in the Plan, Appendices or such other plan or agreement.

10

 

SECTION 6

AMENDMENT AND TERMINATION OF PLAN

6.01      Amendment. The Chairman of the Board of Directors of the Corporation
reserves the right to modify or amend this Plan in whole or in part, effective
as of any specified date; provided, however, that the Chairman shall have no
authority to modify or amend the Plan with respect to the benefit provided by
Section 3 to:

	 	(a)	 	reduce any benefit accrued hereunder based on service and
compensation to the date of amendment unless such action is
necessary to prevent this Plan from being subject to any provision
of Title I, Subtitle B, Parts 2, 3 or 4 of ERISA;
	 
	 	(b)	 	permit the accrual, holding or payment of actual shares of
General Dynamics Corporation common stock under the Plan.

6.02      Termination.

	 	(a)	 	The Chairman of the Board of Directors of the Corporation
reserves the right to terminate this Plan, in whole or in part.
This Plan shall be automatically terminated upon a dissolution of
the Corporation (but not upon a merger, consolidation,
reorganization, recapitalization, or acquisition of a controlling
interest in the voting stock of the Corporation by another); upon
the Corporation being legally adjudicated as bankrupt; upon the
appointment of a receiver or trustee in bankruptcy with respect to
the Corporation’s assets and business if such appointment is not set
aside within ninety (90) days thereafter; or upon the making by the
Corporation of an assignment for the benefit of creditors.
	 
	 	(b)	 	Upon termination of this Plan, no additional Employees shall
become entitled to receive all benefits hereunder; all benefits
accrued through the date of termination (calculated as if the date
of such termination were the date on which the Employee’s employment
ceased) will become non-forfeitable; no additional benefits shall be
accrued hereunder for subsequent payment; and all benefits accrued
to date shall be distributed to the Participants at the time and in
the manner provided by this Plan.

6.03      Delegation. The Chairman of the Board of Directors of the Corporation
may delegate
his powers under this Section 6 by written delegation.

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General Dynamics Corporation Supplemental Retirement Plan

Appendix A

(Defined Benefit Plans subject to the provisions of Section 3)

The following Defined Benefit Plans are subject to the provisions of Section 3.
Where noted, the benefits related to the inclusion of these Defined Benefit
Plans under this Plan provide supplemental benefits related to corporate
acquisitions or, as applicable, supercede the applicability of the provisions
of the indicated prior plan providing similar coverage and as such represent an
amendment and restatement of such plan. Likewise, where noted, the provisions
of Section 3 are modified to the extent specified in this Appendix.

	 	 	 
	
	 	

	Defined Benefit Plan	 	Modifications and Effective Date
	
	 	

	Retirement Plan for Salaried Employees	 	
Effective Date: January 1, 1983.
	
	 	

	Retirement Plan of the Resources Group
Salaried Employees	 	
Effective Date: January 1, 1983.
	
	 	

	Retirement Plan for
Management/Technical Employees of
General Dynamics Advanced Technology
Systems, Inc. (the Plan hereby
supercedes the Lucent Technologies Inc.
Non-Qualified Pension Plan)	 	
Effective Date: October 1, 1997.
	
	 	

	Retirement Plan for Non-Represented
Employees of General Dynamics
Armament/Defense Systems (the Plan
hereby supercedes the Martin Marietta
Corporation Supplemental Excess Retirement Plan)	 	
The benefit under Section 3.02 is
determined taking into account
post December 31, 1996 benefit
service only. Effective Date: January 1, 1997.
	
	 	

	Bath Iron Works Corporation Pension Plan for Salaried Employees	 	
The benefit under Section 3.02 is
determined taking into account
post December 31, 1996 benefit
service only. Effective Date: January 1, 1997.
	
	 	

	Retirement Plan for General Dynamics
Decision Systems, Inc. (the Plan hereby
supercedes the Motorola Supplemental Pension Plan)	 	
For Employees that participated
and were vested in a benefit
under the Motorola Elected
Officers Supplementary Retirement
Plan as of September 28, 2001 the
benefit under Section 3.02 is
determined taking into account
post September 28, 2001 benefit
service only. Effective Date: September 29, 2001.
	
	 	

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	Defined Benefit Plan	 	Modifications
	
	 	

	Retirement Plan for General Dynamics
Information Systems, Inc. (the Plan
hereby supercedes the Ceridian
Corporation Benefit Equalization Plan)	 	
The benefit under Section 3.02 is
determined taking into account
compensation described in Section
3.02 and, in addition, any amount
that would have otherwise been
paid as base salary or bonus but
for the Participant’s election
pursuant to the Ceridian
Corporation Deferred Compensation
Plan. Effective Date: January 1,
1998.
	
	 	

	Retirement Plan for General Dynamics

Government Systems Corporation (the

Plan hereby supercedes the GTE Excess

Pension Plan)	 	
The benefit under Section 3.02 is
determined based on the normal
form of payment. The benefit
under Section 3.02 is determined
taking into account compensation
described in Section 3.02 and, in
addition, certain forms of
compensation not covered under
the Defined Benefit Plan prior to
1995. Optional forms of payment
are calculated independently of
the Defined Benefit Plan but
using the same adjustments as
provided under that plan.
Section 3.03 is modified to allow
Participants to elect a different
form of benefit under this Plan
than under the Defined Benefit
Plan. Effective Date: September
1, 1999.
	
	 	

	Retirement Plan for Salaried Employees of GDLS Muskegon Operations	 	
The benefit under Section 3.02 is
determined taking into account
post March 31, 1996 benefit
service only. Effective Date: April 1, 1996.
	
	 	

	NASSCO Retirement Plan (the Plan hereby

supercedes the NASSCO Supplemental

Retirement Plan)	 	
Only Employees designated by
National Steel and Shipbuilding
Corporation shall be eligible for
the benefit under Section 3.02.
Effective Date: November 11,
1998.
	
	 	

	Retirement Plan for Salaried Employees
of General Dynamics Armament Systems—Saco Operations	 	
The benefit under Section 3.02 is
determined taking into account
post December 31, 2000 benefit
service only. Effective Date: January 1, 2001.
	
	 	

13

 

General Dynamics Corporation Supplemental Retirement Plan

Appendix B

(Bath Iron Works Corporation)

B-1.      Purpose, Superseding Provision. Effective January 1, 1997, the purpose of
this Appendix B is to provide for certain benefit provisions for those
Employees of Bath Iron Works Corporation (“Bath”) described below (the
“Appendix B Employees”). This Appendix forms a part of the Plan to which it is
attached and its terms shall supersede other provisions of the Plan to the
extent such other provisions are inconsistent with this Appendix.

B-2.      Covered Employees. An Appendix B Employee is an Employee who is a member
of a select group of management or highly compensated employees of Bath and who
is designated by the Corporation or Bath as an Appendix B Employee.

B-3.      Amount, Form and Timing of Benefit. An Appendix B Employee shall be
entitled to supplemental benefits in accordance with the provisions of this
Appendix.

	 	(1)	 	The amount of benefits payable to an Appendix B Employee who
is a participant in the Bath Iron Works Corporation Supplemental
Executive Retirement Program (Principal Officers, Tier I, and Tier
II Employees) (the “Bath SERP”) as of December 31, 1996, shall be
the greater of (a) the benefit payable to the Appendix B Employee
under the provisions of the Bath SERP that such Appendix B Employee
participates in (not taking account any reduction for amounts
calculated under B-3(1)(b))or (b) the benefit determined in
accordance with the provisions of Section 3 and Appendix A; provided
that there shall be no duplication of benefits between this Plan and
the Bath SERP for the same period of service. The benefit
determined above shall be paid first from amounts established to pay
for benefits under the Plan (up to the maximum amount determined
under (b) above) with the remainder (if any) paid under the
provisions of the Bath SERP.
	 
	 	 	 	The form and timing of benefits payable to an Appendix B Employee
described in this B-3 (1) shall be determined under the provisions
of the Bath SERP that the Appendix B Employee participates in.
	 
	 	(2)	 	The amount, form and timing of benefits payable to an
Appendix B Employee who is not described in B-3 (1) shall be
determined in accordance with the provisions of Section 3 and
Appendix A.
	 
	 	(3)	 	Notwithstanding anything contained in this Appendix to the
contrary, if an Appendix B Employee described in B-3 (1) commences
his supplemental benefit prior to the commencement of benefits under
the Defined Benefit Plan he

14

 

	 	 	 	participates in, he may elect to receive such benefit in the forms
described under the Bath SERP provided that a lump sum form shall
be available only if the Appendix B Employee elects the lump sum
form option prior to such Appendix B Employee’s termination of
employment. Any such benefit election made prior to the
commencement of benefits under the Appendix B Employee Defined
Benefit Plan shall not be changed based on any future election by
an Appendix B Employee under the Defined Benefit Plan of which such
Appendix B Employee is a member.

15

 

General Dynamics Corporation Supplemental Retirement Plan

Appendix D

(General Dynamics Government Systems Corporation)

D-1.      Purpose, Superseding Provision. Effective September 1, 1999, the purpose
of this Appendix D is to provide for certain provisions for those Employees of
General Dynamics Government Systems Corporation (“GSC”) described below (the
“Appendix D Employees”). This Appendix forms a part of the Plan to which it is
attached and its terms shall supersede other provisions of the Plan to the
extent such other provisions are inconsistent with this Appendix. This
Appendix consists of two parts: (i) an ISEP Executive Minimum and (ii) an
Executive Retired Life Insurance Plan (each a “Part” and collectively “Parts”).
Both such Parts provide benefits for Employees covered by these provisions,
benefits that are in addition to any benefits that may be provided under
Section 3 of the Plan. An Appendix D Employee will participate under a Part or
Parts based on the eligibility provisions of that Part.

D-2.      Definitions. Capitalized terms in this Appendix not defined elsewhere in
the Plan shall have the meaning assigned to them below.

	 	(1)	 	“Administrator” shall mean the Corporation, or the person
(including but not limited to GSC) to whom administrative duties are
delegated to by the Corporation.
	 
	 	(2)	 	“Base Salary” shall mean the Appendix D Employee’s annual
basic remuneration (exclusive of overtime, differentials, premiums
and other similar types of payment, but inclusive of commissions and
bonuses on account of sales when received by an Appendix D Employee
pursuant to a written commitment of his or her employer).
	 
	 	(3)	 	“GSC Qualified Plan” means the Retirement Plan for General
Dynamics Government Systems Corporation effective September 1, 1999.
	 
	 	(4)	 	“GTE Executive Life Insurance Plan” means the GTE Executive
Life Insurance Plan effective January 1, 1979.
	 
	 	(5)	 	“Predecessor Company” shall mean, for periods prior to
September 1, 1999, the GTE Government Systems Corporation and any
Affiliate as defined by the GTE Government Systems Corporation
Pension Plan for Salaried Employees at August 31, 1999.

16

 

ISEP Executive Minimum

D-3.      Covered Employees. For purposes of this part, an Appendix D Employee is
an Employee who is a member of a select group of management or highly
compensated employees of GSC and who Separates as a Special Separatee under
Section 9 of the GSC Qualified Plan prior to December 31, 2002, regardless of
whether he is eligible to receive a Retirement Benefit under the GSC Qualified
Plan.

D-4.      Benefit. The benefit payable to an eligible Appendix D Employee under
this Part shall be a single life annuity equal to the Actuarial Equivalent
Value (as described in (3)(a) below) of the excess, if any, of (1) over (2) as
follows:

	 	(1)	 	The product of (a) times (b) as follows:

	 	(a)	 	The Appendix D Employee’s annual rate of
compensation as of the day immediately preceding the Appendix
D Employee’s Separation Date, as defined in the GSC Qualified
Plan, whereby the annual rate of compensation shall be
determined by including only the types of remuneration
included in determining Modified Average Annual Compensation
under the GSC Qualified Plan, but for periods prior to
September 1, 1999, without regard to awards from the
Predecessor Company under the Management Incentive Plan, the
International Team Incentive Program, and the GTE Investment
Management Corporation Incentive Plan, times
	 
	 	(b)	 	The Payment Ratio (as described in (3)(b) below)
for the Appendix D Employee; over

	 	(2)	 	The ISEP Lump Sum as defined by Section 9 of the GSC
Qualified Plan (plus the portion of such ISEP Lump Sum attributable
to Appendix A), determined without regard to any reduction in the
ISEP Lump Sum attributable to a failure to execute a Separation
Agreement and General Release there under.
	 
	 	(3)	 	For purposes of this D-4, the following shall apply:

	 	(a)	 	The Actuarial Equivalent Value shall be
determined in the same manner as it is determined for purposes
of calculating the ISEP Annuity under Section 9 of the GSC
Qualified Plan.
	 
	 	(b)	 	The Payment Ratio shall be determined as follows
based on the Appendix D Employee’s career band and Base Salary
at termination:

17

 

	 	 	 	 	 	 	 
	Career Band	 	Base Salary Breakpoints	 	Payment Ratio
	
	 	
	 	

	Tan	 	
$80,000 or higher
	 	 	50	%
	 	 	 	 	 	 	 
	Orange	 	
Less than $100,000
	 	 	50	%
	 	 	 	 	 	 	 
	Orange	 	
$100,000 or higher
	 	 	75	%
	 	 	 	 	 	 	 
	Yellow	 	
Less than $155,000
	 	 	75	%
	 	 	 	 	 	 	 
	Yellow	 	
$155,000 or higher
	 	 	100	%

	 	(4)	 	The amounts determined under D-4 shall be reduced to 50% of
the amounts determined unless the Appendix D Employee (or, if
applicable, the Appendix D Employee’s personal representative)
executes a Separation Agreement and General Release pursuant to the
requirements of Section 9 of the GSC Qualified Plan.

D-5.      Timing of Benefit. An Appendix D Employee, surviving spouse or designated
beneficiary who is entitled to an ISEP Executive Minimum benefit under this
Part shall be paid such ISEP Executive Minimum benefit under this Part when
benefits become due and payable to such person under the GSC Qualified Plan.

D-6.      Form of Benefit. Any benefits payable pursuant to this Part shall be paid
under the same conditions and restrictions as would apply to the benefits if
they were provided by the GSC Qualified Plan at the time of retirement, subject
to the following:

	 	(1)	 	An Appendix D Employee shall have the right to elect to
receive benefits under this Part in any one of the forms provided
under the GSC Qualified Plan provided that an annuity option shall
be available under this Part only if the Appendix D Employee elects
the annuity payment option prior to such Appendix D Employee’s
termination of employment.
	 
	 	(2)	 	Notwithstanding D-6 (1), if the Appendix D Employee is also
entitled to a benefit pursuant to the provisions of Appendix A, then
both the benefit attributable to Appendix A and the benefit
attributable to this Part of Appendix D must be paid at the same
time and under the same optional form.
	 
	 	(3)	 	If an Appendix D Employee elects to receive benefits under
this Part in a form other than a single life annuity, the benefits
shall be computed so as to be the Actuarial Equivalent of such
benefits in the form of a single life annuity using the actuarial
tables and interest rates then in effect under the GSC Qualified
Plan.

18

 

Executive Retired Life Insurance Plan

D-7.      Covered Employees. For purposes of this Part, an Appendix D Employee is
an Employee of GSC who as of June 21, 1999, participated in the GTE Executive
Retired Life Insurance Plan (the “ERLIP”) and whose combined age and years of
service as of June 21, 1999, was at least 66 or who was otherwise within five
years of eligibility for the ERLIP as of that date.

In order to be eligible to obtain benefits under this Part, an Appendix D
Employee must retire pursuant to the terms of the GSC Qualified Plan, provided
however that retirement with a deferred vested benefit shall not be deemed to
satisfy this provision except in the case of a participant who terminates
employment with GSC having attained age 60 with at least 10 years of service.

D-8.      Benefit. A participant eligible to receive benefits under this Part shall
receive non-contributory life insurance benefits under the following schedule:

	 	 	 
	Grandfathered	 	 
	Salary Grade	 	 
	at Termination	 	Insurance
	
	 	

	15	 	
1.0 x base salary
	16	 	
1.5 x base salary
	17	 	
2.0 x base salary
	18	 	
2.5 x base salary
	19 and above	 	
3.0 x base salary

The Administrator, in its sole discretion, may amend the above schedule.

Any Appendix D Employee who is demoted, downgraded, transferred or assigned to
a position, whether or not such position is eligible to participate in this
Part, may under extraordinary circumstances as determined by the Administrator,
remain eligible to receive benefits based upon his highest salary grade and
Base Salary while participating in this Part.

D-9.      Timing of Benefit. An Appendix D Employee who satisfies the criteria in
D-7 of this Part shall receive benefits only upon retirement pursuant to the
terms of the GSC Qualified Plan. The benefits under this Part shall be in lieu
of any other life insurance coverage provided for retired employees by GSC.

D-10.      Form of Benefit. The benefit provided by this Part is in the form of
non-contributory life insurance. However, an Appendix D Employee eligible to
receive benefits under this Part may elect to convert all or part of this life
insurance benefit to a supplementary retirement benefit as follows:

19

 

	 	(1)	 	An Appendix D Employee may elect to receive a supplementary
retirement benefit in any form then provided under the GSC Qualified
Plan, or in two to thirty annual installments, or as otherwise may
be approved by the Administrator. The supplementary retirement
benefit shall be based upon the present value of the life insurance
benefit defined in this Part, using the actuarial tables and
interest rates then in effect for the GSC Qualified Plan
	 
	 	(2)	 	In the event that an Appendix D Employee elects to receive a
supplementary retirement benefit other than in the single life
annuity form and/or other than at age 65, the amount of such
benefits shall be actuarially adjusted using the actuarial table and
interest rates then in effect for the GSC Qualified Plan.
	 
	 	(3)	 	If an Appendix D Employee elects to receive a supplementary
retirement benefit in an installment form and dies prior to the
payment of all installments, any unpaid installments shall be paid
to the Appendix D Employee’s beneficiary or, in the absence of a
designated beneficiary, to the Appendix D Employee’s estate. The
designated beneficiary shall have the option to continue to receive
annual payments for the period elected by the Appendix D Employee or
to receive the unpaid installments in a lump sum. In the event that
a lump sum is elected, the lump sum will be adjusted using the
actuarial tables and interest rates then in effect for the GSC
Qualified Plan.

20exv10w15

 

EXHIBIT 10.15

GROUP LIFE INSURANCE POLICY

A contract between

Aetna Life Insurance Company

(A Stock Company herein

called Aetna)

and

GENERAL DYNAMICS CORPORATION

(Policyholder)

	 	 	 
	Policy Number:             GP-658452           	 	
Signed at Aetna’s Home Office
	Date of issue:               June 7, 1993         	 	
in Hartford, Connecticut on
	To take effect:              June 1, 1990         	 	
the date of issue.
	Policy Delivered in:     Missouri              	 	 
	 	 	 
	This policy will be construed in line	 	
/s/ Ronald E. Compton
	with the law of the jurisdiction in
which it is delivered.	 	
President
	 	 	 
	Based on timely premium payments by	 	
/s/ Lewis R. Merrine
	the Policyholder, Aetna agrees with
the Policyholder, to pay benefits in
line with the policy terms.	 	
Legal Director
	 	 	 
	The duties and the rights of all	 	
/s/ Margaret L. Eno
	persons will be based solely on

policy terms. This policy is non-
participating.	 	
Registrar

	 	 	 	 	 
	GR-29
0010
ED: 9-’92	 	
Aetna Life Insurance Company

151 Farmington Avenue
Hartford, Connecticut 06158

203-273-0123
	 	Face Page
 
         
207041

 

 

INDEX

POLICY CONTENTS

PART I

ELIGIBLE CLASSES – CHANGES –

SPECIAL PROVISIONS

PART II

POLICYHOLDER AND INSURANCE

COMPANY MATTERS

 

	 	 	 	 	 
	GR-29

0040

ED: 7-73	 	
Page 9000
	 	F205236

 

 

POLICY CONTENTS

This policy consists of:

     The Face Page, Index, this Policy Contents page and all the provisions of Part
I and II; and

     The provisions found in the Certificates(s) listed in this section.

The words “you” or “your” in any Certificate included in the policy, will
refer to a covered Employee.

The Certificate(s) included in this policy are as follows:

	A “Certificate” consists of a Certificate Base document (“Cert. Base”) and any
Summary of Coverage (“SOC”) or Certificate Rider (“Rider”) which may be issued
to support or amend the Cert. Base.

	 	 	 	 	 
	Identification	 	Issue Date	 	Effective Date
	
	 	
	 	

	Cert Base – 1	 	
4/1/93
	 	6/1/90
	SOC – 1A	 	
4/1/93
	 	6/1/90

	 	 	 	 	 
	GR-29

1508

ED: 6-86	 	
Page 9010
	 	F205478

 

 

PART I

ELIGIBLE CLASSES

All classes of employees of a Member Employer are eligible except those who
are:

     Part-time;

     Temporary;

     Substitute; or

     In a class for which a Certificate is not in this policy.

An employee is eligible only for the coverages shown in the Certificate
which applies to this class.

	 	 	 	 	 
	GR-29

0150

ED: 7-73	 	
Page 9050
	 	F205823

 

 

PART I (Continued)

CHANGE IN AMOUNTS

EMPLOYEE COVERAGE (NON-CONTRIBUTORY)

Status, Schedule or Benefit Change: If, for any reason and at any time, the
employee’s rate of earnings or status or any schedule or level of benefit is
changed so as to warrant an amount of non-contributory coverage other than that
for which the employee is then covered, the amount of his coverage will be
changed to the new amount. An increase will be subject to the Active Service
Rule.

A retroactive change in an employee’s rate of earnings or status will not
result in a retroactive change in coverage. Any change in coverage will be
effective on the date the change in earnings or status is made.

	 	 	 	 	 
	GR-29

0190

ED: 7-73	 	
Page 9062
	 	T-F205328

 

 

PART I (Continued)

OTHER CHANGES

EMPLOYEE COVERAGE

Addition or Deletion of a Benefit: Except as set forth in the next paragraph,
if any benefit becomes applicable to an employee who is already covered under
the policy, that employee will be eligible for that benefit right away.
Coverage will be effective in line with the Eligibility provisions as described
elsewhere in the group policy. This includes the Active Service Rule.

If any benefit no longer applies to an employee, coverage for that benefit will
stop right away for that employee. Any rights under the benefit gained by the
employee while the coverage was in force will not be affected.

Change in Eligibility Date: An increase in any required period of service will
apply only to an employee who enters service on or after the effective date of
the increase. A decrease in any required period of service will permit an
employee to become eligible on the effective date of the decrease if he then
has worked the new period of service. Otherwise he is eligible on the date he
completes it.

	 	 	 	 	 
	GR-29

0190

ED: 7-73	 	
Page 9070
	 	T-F205344

 

 

PART I (Continued)

SPECIAL PROVISIONS

ACTIVE WORK RULE

If the employee is both disabled (that is: ill or injured) and away from work
on the date any of his Employee Coverage (or any increase in such coverage)
would become effective, the effective date of the coverage (or increase) will
be held up until the date he goes back to work for one full day.

	 	 	 	 	 
	GR-29

0170

ED: 7-73	 	
Page 9072
	 	F205573

 

 

PART II

POLICYHOLDER AND INSURANCE COMPANY MATTERS

DECLARATIONS

	 	 	 
	The first “policy month” starts on	 	June 1
	Each subsequent policy month starts on the first	 	
	of a calendar month	 	 
	 	 	 
	The first “policy year” starts on	 	June 1
	and ends on	 	May 31
	Each subsequent policy year starts on a	 	June 1
	It ends on a	 	May 31
	 

MEMBER EMPLOYERS

Member Employers are those employers which are included under this policy by
written agreement between the Policyholder and Aetna.

An employer may be a Member Employer if not against the law of the jurisdiction
in which this policy is delivered.

The Policyholder may act for all Member Employers in all policy matters. Each
such act, or agreement made between Aetna and the Policyholder, or notice given
by one to the other will be binding on all the Employers.

DATA REQUIRED

The Policyholder and each Member Employer must give Aetna all data required as
to policy matters. All data which may have a bearing on insurance or premiums
will be open for Aetna to inspect while this policy is in force. Also, they
must be open until the final rights and duties under this policy have been
resolved.

CLERICAL ERROR

Any clerical error by anyone in keeping records, or a delay in making an entry,
will not alone decide if insurance is valid. A fair change in premiums will be
made when the error or delay is found.

MISSTATEMENTS

If any fact as to a person to whom the insurance relates is found to have been
misstated, a fair change in premiums will be made. If the misstatement affects
the existence or amount of insurance, the true facts will be used to decide if
insurance is in force and its amount.

	 	 	 	 	 
	GR-29

1150

ED: 7-73	 	
Page 9080
	 	F205333

 

 

PART II (Continued)

POLICYHOLDER AND INSURANCE COMPANY MATTERS (Continued)

NON-DISCRIMINATION

In the management of this policy, the Policyholder and the Member Employers
will act so as not to discriminate unfairly between persons in like situations
at the time of the action. Aetna can rely on such action. It will not have to
probe into the details.

CERTIFICATES

Aetna will issue to the Policyholder individual certificates. These should be
delivered to each insured employee. The insurance in force will be set forth.
Statements as to whom benefits are payable will appear. The Life Insurance
Conversion Privilege will also be described.

POLICY CHANGES

This policy may be changed at any time by written agreement between Aetna and
the Policyholder. The consent of any employee or other person is not needed.
All agreements made by Aetna are signed by one of its executive officers. No
other person can change or waive any of the policy terms or make any agreement
binding Aetna. The Policyholder will not have to give written approval of a
change in the policy if:

	 	 	 	The Policyholder has asked for the change and Aetna has greed to it.
	 
	 	 	 	The change is needed so that the policy will conform to any law,
regulation or ruling of:

	 
	 	 	 	A jurisdiction that affects a person covered under this policy; or
	 
	 	 	 	The federal government.

	 	 	 	 	 
	GR-29
1160
ED. 7-73	 	
Page 9090
	 	F205243

 

 

PART II (Continued)

POLICYHOLDER AND INSURANCE COMPANY MATTERS (Continued)

CONTRACT

This policy and the application of the Policyholder are the entire contract. A
copy of the application is attached. All statements made by the Policyholder or
an insured employee shall be deemed representations and not warranties. No
written statement made by an employee shall be used by Aetna in a contest
unless a copy of the statement is or has been furnished to the employee or his
beneficiary, or the person making the claim.

INCONTESTABILITY

The validity of this policy shall not be contested, except for non-payment of
premiums, after it has been in force for 2 years. No statement made by an
employee about his insurability shall be used by Aetna in contesting the
validity of the insurance as to which such statement was made if the insurance
has been in force prior to the contest for 2 years during the employee’s
lifetime; nor unless such statemeny is in written form signed by him.

	 	 	 	 	 
	GR-29
1165
ED. 7-73	 	
Page 9100
	 	F205419

 

 

PART II (Continued)

POLICYHOLDER AND INSURANCE COMPANY MATTERS (Continued)

PREMIUM RATES

Employee Life Insurance Coverage

TABLE OF PREMIUM RATES

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Age on
Birth-
day Near-
est Be-
ginning
of the
Policy
Year	 	Monthly
Premium
Per
$1,000
of 
Insurance	 	Age on
Birth-
day Near-
est Be-
ginning
of the
Policy
Year	 	Monthly
Premium
Per
$1,000
of 
Insurance	 	Age on
Birth-
day Near-
est Be-
ginning
of the
Policy
Year	 	Monthly
Premium
Per
$1,000
of 
Insurance	 	Age on
Birth-
day Near-
est Be-
ginning
of the
Policy
Year	 	Monthly
Premium
Per
$1,000
of 
Insurance
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	15
	 	$	.19	 	 	 	35	 	 	$	 .32	 	 	 	55	 	 	$	1.65	 	 	 	75	 	 	$	8.56	 
	16
	 	 	.20	 	 	 	36	 	 	 	.34	 	 	 	56	 	 	 	1.80	 	 	 	76	 	 	 	9.24	 
	17
	 	 	.21	 	 	 	37	 	 	 	.36	 	 	 	57	 	 	 	1.97	 	 	 	77	 	 	 	10.00	 
	18
	 	 	.22	 	 	 	38	 	 	 	.38	 	 	 	58	 	 	 	2.14	 	 	 	78	 	 	 	10.86	 
	19
	 	 	.23	 	 	 	39	 	 	 	.41	 	 	 	59	 	 	 	2.32	 	 	 	79	 	 	 	11.81	 
	20
	 	 	.23	 	 	 	40	 	 	 	.45	 	 	 	60	 	 	 	2.51	 	 	 	80	 	 	 	12.83	 
	21
	 	 	.24	 	 	 	41	 	 	 	.49	 	 	 	61	 	 	 	2.72	 	 	 	81	 	 	 	13.93	 
	22
	 	 	.24	 	 	 	42	 	 	 	.53	 	 	 	62	 	 	 	2.96	 	 	 	82	 	 	 	15.07	 
	23
	 	 	.25	 	 	 	43	 	 	 	.57	 	 	 	63	 	 	 	3.21	 	 	 	83	 	 	 	16.26	 
	24
	 	 	.25	 	 	 	44	 	 	 	.63	 	 	 	64	 	 	 	3.48	 	 	 	84	 	 	 	17.50	 
	25
	 	 	.25	 	 	 	45	 	 	 	.68	 	 	 	65	 	 	 	3.78	 	 	 	85	 	 	 	18.80	 
	26
	 	 	.25	 	 	 	46	 	 	 	.74	 	 	 	66	 	 	 	4.11	 	 	 	86	 	 	 	20.16	 
	27
	 	 	.26	 	 	 	47	 	 	 	.81	 	 	 	67	 	 	 	4.48	 	 	 	87	 	 	 	21.60	 
	28
	 	 	.26	 	 	 	48	 	 	 	.89	 	 	 	68	 	 	 	4.89	 	 	 	88	 	 	 	23.13	 
	29
	 	 	.26	 	 	 	49	 	 	 	.97	 	 	 	69	 	 	 	5.34	 	 	 	89	 	 	 	24.79	 
	30
	 	 	.27	 	 	 	50	 	 	 	1.06	 	 	 	70	 	 	 	5.81	 	 	 	90	 	 	 	26.62	 
	31
	 	 	.27	 	 	 	51	 	 	 	1.16	 	 	 	71	 	 	 	6.32	 	 	 	91	 	 	 	28.68	 
	32
	 	 	.28	 	 	 	52	 	 	 	1.26	 	 	 	72	 	 	 	6.84	 	 	 	92	 	 	 	31.03	 
	33
	 	 	.29	 	 	 	53	 	 	 	1.38	 	 	 	73	 	 	 	7.38	 	 	 	93	 	 	 	33.75	 
	34
	 	 	.30	 	 	 	54	 	 	 	1.51	 	 	 	74	 	 	 	7.95	 	 	 	94	 	 	 	36.95	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	95	 	 	 	40.98	 

The above premiums apply only to males. For female employee premiums, multiply
the above premiums by .60. Multiply the above premiums by: 11.83 for annual
premiums; 5.96 for semiannual premiums, 2.99 for quarterly premiums.

Policy Charge: The calculated premium shall be increased by a policy charge of
$.20 for each $1,000 of insurance in force at the start of the then current
policy year. This applies for each policy month in the premium paying period.
The policy charge shall not exceed $8.00 for any month.

	 	 	 	 	 
	GR-29
1170
ED. 7-73	 	
Page 9110
	 	F205432

 

 

PART II (Continued)

POLICYHOLDER AND INSURANCE COMPANY MATTERS (Continued)

PREMIUM RATES (Continued)

Employee Life Insurance Coverage (Continued)

At the start of each policy year, Aetna will compute a total premium based upon
the number of premium payments then agreed upon between the Policyholder and
Aetna. Such premium will be the sum of the individual premiums of the employees
then insured, figured from the table of premium rates then in effect. It will
be figured on the basis of the ages (nearest birthday) then attained by insured
employees and their amounts of insurance. From such total an average premium
rate will be figured by dividing the total premium by the total amount of
insurance then in force.

The average premium rate may be figured again as of any premium-due date only:

	 	 	 	By reason of a change in factors bearing on the risk assumed. Aetna must
request this.
	 
	 	 	 	Once during any continuous 12 month period. The Policyholder must request
this and give 60 days advance notice to Aetna.

Such refiguring will be made on the same basis as described above. All facts
will be taken as of the date of the refiguring.

The latest average premium rate will be used to figure premiums until a new one
is determined. Each premium due during the policy year will be figured by
multiplying the amount of insurance in force at the start of the premium-paying
period by the average premium rate.

	 	 	 	 	 
	GR-29
1181
ED. 7-73	 	
Page 9140
	 	F205248

 

 

PART II (Continued)

POLICYHOLDER AND INSURANCE COMPANY MATTERS (Continued)

PREMIUM DUE—EXPERIENCE RATING

The premium due under this policy on any premium due date will be the sum of
the premium charges for the coverages then provided under this policy.

If premiums are payable monthly, any insurance becoming effective will be
charged for from the first day of the policy month on or right after the date
the insurance takes effect. Premium charges for insurance which terminates will
cease as of the first day of the policy month on or right after the date the
insurance terminates. If premiums are payable less often than monthly, premium
charges or credits for a fraction of premium paying period will be made on a
pro rata basis for the number of policy months between the date premium charges
start or cease and end of the premium paying period. If this policy is changed
to provide more coverage to take effect on a date other than the first day of a
premium paying period, a pro rata premium for the coverage will be due and
payable on that date. It will cover the period then starting and ending right
before the start of the next premium paying period.

The premium charges will be figured at the premium rates shown before. Aetna
may change them due to experience or a change in factors bearing on the risk
assumed. Each change shall be made by written notice to the Policyholder by
Aetna.

No experience reduction or increase in premium rates shall become effective
less than 12 months after the effective date of the group policy. As used here,
“group policy” shall be deemed to include any group policy previously issued by
Aetna that has been replaced in whole or in part by this policy.

	 	 	 	 	 
	GR-29
1195
ED. 7-81	 	
Page 9160
	 	F205768

 

 

PART II (Continued)

POLICYHOLDER AND INSURANCE COMPANY MATTERS (Continued)

PREMIUM DUE—EXPERIENCE RATING (Continued)

At the end of a policy year, Aetna may declare an experience credit. The amount
of each credit Aetna declares will be returned to the Policyholder. Upon
request by the Policyholder, part or all of it will be applied against the
payment of premiums or in any other manner as may be agreed to by the
Policyholder and Aetna.

If the sum of employee contributions which have been made for group insurance
exceeds the sum of premiums which have been paid for group insurance (after
giving effect to any experience credits), the excess will be applied by the
Policyholder for the sole benefit of empolyees. Aetna will not have to see to
the use of such excess.

Instead of figuring premiums as described above, premiums may be figured in any
way approved by Aetna that comes up with about the same amount of premiums.

Aetna will not have to refund any premium for a period prior to:

	 	 	 	The first day of the policy year in which Aetna receives proof that the
refund should be made; or
	 
	 	 	 	The date 3 months before Aetna receives proof, if this produces a larger
refund.

This applies even if the premium was paid in error.

Payment of Premiums: The Policyholder will pay premiums in advance. They may be
paid at Aetna’s Home Office or to its authorized agent.

A premium is due to be paid on the first day of each policy month.

The Policyholder may change the number of premium payments as of a premium-due
date. This needs Aetna’s written consent.

Grace Period: A grace period of 31 days after the due-date will be allowed the
Policyholder for the payment of each premium.

	 	 	 	 	 
	GR-29
1198
ED. 7-73	 	
Page 9170
	 	F205755

 

 

PART II (Continued)

POLICYHOLDER AND INSURANCE COMPANY MATTERS (Continued)

DISCONTINUANCE OF POLICY

The Policyholder may terminate this policy as to any or all coverage of all or
any class of employees of any one or more Member Employers. A Member Employer
may terminate this policy as to any or all coverage of all or any class of its
employees. Aetna must be given written notice. The notice must state when such
termination shall occur. It must be a date after the notice. It shall not be
effective during a period for which a premium has been paid to Aetna as to the
coverage.

Aetna has the right to terminate this policy as to all or any class of
employees of a Member Employer at any time for failure to meet continued
underwriting standards, or at any time after the end of the grace period if the
premium for the employees’ coverage has not been paid. Written notice of the
termination date must be given by Aetna. This right is subject to the terms of
any applicable law or regulation.

Aetna may also terminate this policy in its entirety or as to any or all
coverage of all or any class of employees of a Member Employer by giving the
Policyholder advance written notice of when it will terminate. The date shall
not be earlier than the first policy anniversary date specified in the
Declarations section of this policy; thereafter, the date of termination shall
not be earlier than 31 days after the date of the notice unless it is agreed to
by the Policyholder and Aetna.

If:

	 	 	 	This policy terminates as to any of the employees of a Member Employer;
and
	 
	 	 	 	Premiums have not been paid for the period this policy was in force for
those employees;

then the Policyholder and the Employer shall be jointly and severally liable to
Aetna for the unpaid premiums.

	 	 	 	 	 
	GR-29
1210
ED. 7-73	 	
Page 9180
	 	F205755

MO

 

 

	
SUMMARY OF COVERAGE

SOC: 1A

Issue Date: 4/1/93

Effective Date: 6/1/90

EMPLOYER: GENERAL DYNAMICS CORPORATION

GROUP POLICY: GP-658452

 

GR-9       0030-0120                                                                         1                                                                                       7/93

 

 

ELIGIBILITY

Employees

You are in an Eligible Class if you are a regular full-time Corporate Officer
or an Executive of General Dynamics eligible for Incentive Compensation.

Aetna shall be entitled to rely upon the attestation of the Employer that an
employee is in a class of employees eligible for coverage as shown in this
Summary of Coverage, and the findings by the Employer with regard hereto will
be conclusive and binding upon all persons for the purposes of this Booklet.

Your Eligibility Date, if you are then in an Eligible Class, is the Effective
Date of this Plan. Otherwise, it is the date you commence active work for your
Employer or, if later, the date you enter an Eligible Class.

ENROLLMENT PROCEDURE

You will receive this coverage if you are in an Eligible Class. However, if you
wish to refuse this coverage, you must sign a waiver form, which can be
obtained from your Employer.

EFFECTIVE DATE OF COVERAGE

Employees

Your coverage will take effect on your Eligibility Date. If you happen to be
both disabled and away from work on the date your coverage would take effect,
the coverage will not take effect until you return to full-time work for one
full day. This rule also applies to an increase in your coverage.

COVERAGE FOR YOU ONLY

	 	 	 
	Classification	 	
Amount
	Corporate Officers	 	
200% of your basic annual
salary, as determined by your
Employer.
	 	 	
  Maximum: $1,000,000
	 	 	 
	All Other Employees	 	
100% of your basic annual
salary, (200% effective April
1, 1991) as determined by
your Employer.
	 	 	
  Maximum: $1,000,000

For the purpose of this coverage, “annual salary” means your base salary. It
does not include overtime, bonuses, commissions and other extra compensation.

GR-9      0030-0120                                                                         2                                                                                       7/93

 

	

BENEFICIARY

Until changed in accordance with the terms of the group contract, the named
beneficiary is the one named under your Group Life Policy and recorded with
Aetna or the Employer.

ADJUSTMENT RULE

If for any reason a person is entitled to a different amount of coverage,
coverage will be adjusted as provided elsewhere in the group contract, except
that an increase is subject to any active work rule requirement described in
Effective Date of Coverage.

Benefits for claims incurred after the date the adjustment becomes effective
are payable in accordance with the revised plan provisions. In other words,
there are no vested rights to benefits based upon provisions of this Plan in
effect prior to the date of any adjustment.

GENERAL

This Summary of Coverage replaces any Summary of Coverage previously in effect
under the group contract. Requests for amounts of coverage other than those to
which you are entitled in accordance with this Summary of Coverage cannot be
accepted.

The insurance described in this Booklet-Certificate will be provided under
Aetna Life Insurance Company’s policy form GR-29.

KEEP THIS SUMMARY OF COVERAGE

WITH YOUR BOOKLET-CERTIFICATE

GR-9      0030-0120                                                                         3                                                                                       7/93

 

your

group

plan

GENERAL DYNAMICS CORPORATION

EXECUTIVE LIFE

GR-9

 

 

YOUR GROUP COVERAGE PLAN

This Plan is underwritten by the Aetna Life Insurance Company, of Hartford,
Connecticut (called Aetna). The benefits and main points of the group contract
for persons covered under this Plan are set forth in this Booklet. They are
effective only while you are covered under the group contract.

If you become covered, this Booklet will become your Certificate of Coverage.
It replaces and supersedes all Certificates issued to you by Aetna under the
group contract.

	 	/s/ Ronald E. Compton

	 	President

Cert. Base: 1
Issue Date: 4/1/93
Effective Date: 6/1/90

 

GR-9

 

TABLE OF CONTENTS

	 	 	 
	 	 	Page
	 	 	

	Summary of Coverage	 	
Issued with

Your Booklet
	 	 	 
	Life Insurance	 	
1
	 	 	 
	General Information About

  Your Coverage	 	
4

 

GR-9

 

 

In addition, information may be given to regulators of Aetna’s business and to
others as may be required by law. It may also be given to law enforcement
authorities when needed to prevent or prosecute fraud or other illegal
activities.

Your Right of Access and Correction

In general, you have a right to learn the nature and substance of any
information Aetna has in its files about you. You may also have a right of
access to such files, except information which relates to a claim or a civil or
criminal proceeding, and to ask for correction, amendment, or deletion of
personal information. This can be done in states which provide such rights and
which grant immunity to insurers providing such access. If you request any health information, Aetna may elect to disclose details of the
information you request to your (attending) physician. If you wish to exercise
this right or if you wish to have more detail on our information practices,
please contact:

Aetna Life Insurance Company

Attn: Underwriting Services-EBD, MC63

151 Farmington Avenue

Hartford, Connecticut 06156

 

 

PRIVACY NOTICE

The information in this Notice is not a part of either the group contract, your
Certificate of Coverage or the Booklet. It is important to you as a covered
person under the group contract. We have bound it into this document only as an
aid to you in keeping insurance related material together.

Aetna has adopted a comprehensive insurance privacy policy based on the
recommendations of the Federal Privacy Protection Study Commission. This Notice
describes certain aspects of that policy which apply to you as a covered person
in a plan of group insurance insured by Aetna. The policy does not apply where
a different approach is required by law.

Information Which May be Collected

Aetna, in providing insurance services to you, relies mainly on the information
you give on your group enrollment form and when you file claims.

Aetna may also collect information about you from other sources. This is
information necessary for Aetna to perform its function with regard to the
insurance transaction in question. For example, if the amount or type of
coverage you are entitled to depends on your earnings or job class, Aetna would
obtain that information from your Employer.

Disclosure Of Information To Others

All of this information will be treated as confidential. It will not be
disclosed to others without your authorization, except in some instances where
such disclosure is necessary for the conduct of Aetna’s business. Disclosure
cannot be contrary to any law which applies.

The following sets forth the types of disclosure that may be made:

	•	 	Information may be made available to your Employer or his or her
representative in connection with the claim and financial administration of the
Plan. This includes policyholder audits.
	 
	•	 	Information may be disclosed to other insurers if there may be duplicate
coverage or a need to preserve the continuity of your coverage.
	 
	•	 	Information may be disclosed to Peer Review Organizations and other agencies
to determine whether health services were necessary and reasonably priced.

 

 

LIFE INSURANCE

This Plan will pay as a Life Insurance benefit the amount of Life Insurance in
force for you if you die from any cause while insured. You name your
beneficiary. You may change your choice at any time.

IS THERE A PERMANENT AND TOTAL DISABILITY FEATURE?

Yes. If you become permanently and totally disabled, your insurance may be
extended. You will not have to make any further contribution. No premium
payments will be required from your Employer.

You are permanently and totally disabled only if disease or injury stops you
from engaging in:

	•	 	the material and substantial duties of your own job during the first 12
months of the disability; and thereafter,
	 
	•	 	the material and substantial duties of any gainful job for which you are
suited by education, training or experience.

You must meet all of the following to be eligible:

	•	 	Your Life Insurance must be in force when you become permanently and totally
disabled.
	 
	•	 	Your permanent and total disability must have lasted for at least 6 months.
	 
	•	 	You must furnish all proof when requested. Aetna has the right to examine
you, at its expense, before approving the proof.

Aetna must receive written notice of claim for this extension at its Home
Office within 12 months after you stop active work. Proof of the permanent and
total disability must be received no later than 12 months after premium
payments stop.

This extended insurance will be the amount you were insured for on the date
your total disability began.

This extension period will stop on the first to occur of:

	•	 	The date Aetna sends you a request at your last address shown on Aetna’s
records:
	 
	 	 	For an exam, if you do not go for the exam within 31 days of that date.
	 
	 	 	For proof that you are still permanently and totally disabled, if proof is not
given within 31 days of that date.

	GR-9	1

 

	•	 	The date you are no longer permanently and totally disabled.
	•	 	The date referred to in item (i) and (ii) below:

	 	(i)	 	if you become totally and permanently disabled prior to the date
you attained age 62, the end of the calendar month in which you attain
age 65;
	 	(ii)	 	if you become totally and permanently disabled on or after
the date you attained age 62, the expiration of the number of months of
total disability, as determined from the following Table:

Table

	 	 	 
	Age When Permanent and	 	Months of
	Total Disability Commences	 	Total Disability
	
	 	

	62 but less than 63	 	
42 months
	63 but less than 64	 	
36 months
	64 but less than 65	 	
30 months
	65 but less than 66	 	
24 months
	66 but less than 67	 	
21 months
	67 but less than 68	 	
18 months
	68 but less than 69	 	
15 months
	69 or over	 	
12 months

After insurance has been extended continuously for 2 years, Aetna will not
request an exam or proof more often than once in a 12 month period.

When the extension period stops, you may be eligible to convert to an
individual life insurance policy, as described in the “Conversion Privilege”
section, as if your employment had ceased. However, if you become eligible for
life insurance under any group policy within 31 days after the end of the
extension period, the privilege is not allowed.

Extended Death Benefit

If Aetna received proof, at its Home Office, that all of the following apply, it
will pay your beneficiary the amount of Life Insurance which may be extended
under the permanent and total disability provision:

	•	 	Premium payments for your
Life Insurance case while
you are totally disabled by
disease or injury which
stops you from engaging in
the duties of your own job.

	 	 
	GR-9	2

 

	•	 	You die during the uninterrupted continuance of the total disability.
	•	 	Death occurs no later than 12 months after premium payments from your employer cease.
	•	 	You would have qualified for extended insurance except that:
	 
	 	 	your total disability had not lasted at least 6 months; or
	 
	 	 	the required proof has not yet been received or approved by Aetna.

Written notice of your death must be given to Aetna at its Home Office within
12 months of your death. If it is not given, Aetna will not have to pay this
benefit.

When Aetna approves a claim for any benefit under this feature, the benefit
will be in full settlement and satisfaction of Aetna’s obligations.

If any individual policy has been issued to you under the Conversion Privilege,
your rights under this section may be restored. In order to restore those
rights, you must give up all such policies without claim, except for the return
of the premiums you paid.

	 	 
	GR-9	3

 

GENERAL INFORMATION ABOUT YOUR

COVERAGE

WHEN DOES COVERAGE TERMINATE?

Coverage under this Plan terminates at the first to occur of:

	•	 	When employment ceases.
	•	 	When the group contract terminates as to the coverage.
	•	 	When you are no longer in an Eligible Class.

Ceasing active work will be deemed to be cessation of employment. If you are
not at work due to one of the following, employment may be deemed to continue up
to the limits shown below.

If you are not at work due to disease or injury, your coverage shall be
continued for up to 6 months from the start of the absence. It may be further
continued, until stopped by your Employer, but not beyond 12 months from the
start of the absence.

If you are not at work due to temporary lay-off or leave of absence, your
employment may continue until stopped by your Employer, but not beyond the end
of the policy month after the policy month in which the absence started. The
term “policy month” is defined elsewhere in the group contract. See your
Employer for this definition.

If no Eligible Class of retired employees is shown, there is no coverage for
retired employees.

In figuring when employment will stop for the purposes of termination of any
coverage, Aetna will rely upon your Employer to notify Aetna. This can be done
by telling Aetna or by stopping premium payments. Your employment may be deemed
to continue beyond any limits shown above if Aetna and your Employer so agree
in writing.

If you cease active work, ask your Employer if any coverage can be continued.

	 	 
	GR-9	4

 

MAY GROUP LIFE INSURANCE BE CONVERTED?

If any of your Life Insurance ceases because your employment ceases or you are
no longer in a class eligible for such insurance, or because of age, pension or
retirement, the amount of insurance which ceases (or a lesser amount if
desired) may be converted to an individual life insurance policy.

Your converted policy may be any kind of individual policy then customarily
being issued by Aetna for the amount being converted and for your age (nearest
birthday) on the date it will be issued, except a term policy or one with
disability or other supplementary benefits.

When Life Insurance ceases because that part of the group contract discontinues
as to your employee class, and insurance on the life of the person has been in
force under the group contract for at least 5 years in a row prior to such
discontinuance, the amount that ceases less the amount of any group life
insurance for which the person becomes eligible within 31 days of
discontinuance may be converted to an individual policy. The maximum amount
that can be converted by each person in any event is $10,000.

In order to convert, written application must be made for an individual policy
and the first premium must be paid on it within 31 days after cessation of
insurance for any of the above reasons.

No evidence of insurability will be required.

The individual policy will become effective at the end of the 31 day period
during which conversion is possible.

The premiums for the converted policy will be at Aetna’s then customary rates
for the same policy issued to any other person of the same class of risk and
age at the time the converted policy is to become effective.

After an individual policy becomes effective for any person, that policy will
be in exchange for all benefits and privileges under the group contract as
regards the person involved and the amount that could have been converted.

However, for insurance on your life, if it is later determined that you were
totally disabled at the time premium payments for your group life insurance
ceased, you may be entitled to certain rights described in the Life Insurance
Benefits section.

	 	 
	GR-9	5

 

IS THERE ANY LIFE INSURANCE AFTER TERMINATION?

Yes. In most cases a person can apply for an individual policy under the
Conversion Privilege within 31 days after his or her group life insurance
ceases. If a person dies during this 31 days and before the individual policy
goes into effect, the amount payable under the group contract is limited to the
maximum that could have been converted. This limit applies even if he or she
has not applied for or paid the first premium on the individual policy.

ADDITONAL PROVISIONS

The following additional provisions apply to your coverage.

	•	 	You cannot receive multiple coverage under this Plan because you are
connected with more than one Employer.
	•	 	In the event of a misstatement of any fact affecting your coverage
under this Plan, the true facts will be used to determine the coverage
in force.

This document describes the main features of this Plan. Additional provisions
are described elsewhere in the group contract. If you have any questions about
the terms of this Plan or about the proper payment of benefits, you may obtain
more information from your Employer or, if you prefer, from the Home Office of
Aetna.

Your Employer hopes to continue this Plan indefinitely but, as with all group
plans, this Plan may be changed or discontinued with respect to all or any
class of employees.

CAN MY INSURANCE BE ASSIGNED?

Life Insurance may be assigned only with Aetna’s written consent and only if
you assign all ownership as a gift. If you wish to do this, an assignment form
must be completed by you. Then send 3 copies to Aetna’s Home Office to be
approved. See your Employer for details. Neither your Employer nor Aetna
guarantees or assumes any obligation concerning any assignment.

CLAIMS OF CREDITORS

If allowed by law, Life Insurance benefits are exempt from legal or equitable
process for your debts. This also applies to the debts of your beneficiary.

	 	 
	GR-9	6

 

BENEFICIARIES

You may name or change your beneficiary by filing written request at your
Employer’s headquarters or at Aetna’s Home Office. Ask your Employer for the
forms. The naming or any change will take effect as of the date you execute the
request. Aetna will be fully discharged of its duties as to any payment made by
it before your request is received at its Home Office.

Any amount payable to a beneficiary will be paid to those you name. Unless you
state to the contrary, if more than one beneficiary is named, they will share
on equal terms.

If a named beneficiary dies before you, his or her share will be payable in
equal shares to any other named beneficiaries who survive you.

If no named beneficiary survives you or if no beneficiary has been named,
payment will be made as follows to those who survive you:

	•	 	Your spouse, if any.
	•	 	If there is no spouse, in equal shares to your children.
	•	 	If there is no spouse or child, to your parents, equally or to the survivor.
	•	 	If there is no spouse, child or parent, in equal shares to your brothers and sisters.
	•	 	If none of the above survives, to your executors or administrators.

HOW AND WHEN SHOULD CLAIMS BE REPORTED?

A claim must be submitted to Aetna in writing. It must give proof of your death
or disability. Your Employer has claim forms. All claims should be reported
promptly.

HOW WILL BENEFITS BE PAID?

Benefits will be paid as soon as the necessary written proof to support the
claim is received. Any death benefit for your loss of life will be paid in
accordance with the beneficiary designation. Payment will be made in one sum
unless you have elected an installment method which has been agreed to by
Aetna. If you do not do so prior to your death, your beneficiary will have this
right before any payment is made. The methods of settlement allowed will be
those offered by Aetna under the individual life insurance policies Aetna is
issuing when the election is made.

	 	 
	GR-9	7

 

Life & Casualty
Aetna Life Insurance Company
Hartford, Connecticut

	 	 
	7/93 – 700	PRINTED IN U.S.A.

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