Document:

exv10w14

Exhibit 10.14

[4-Year Cliff Vesting With Retirement Provision]

NORTHROP GRUMMAN CORPORATION

TERMS AND CONDITIONS APPLICABLE TO

2011 RESTRICTED STOCK RIGHTS

GRANTED UNDER THE 2001 LONG-TERM INCENTIVE STOCK PLAN

     These Terms and Conditions (“Terms”) apply to certain “Restricted Stock Rights” (“RSRs”)
granted by Northrop Grumman Corporation (the “Company”) to [________] in 2011. If you were granted
an RSR award by the Company in 2011, the date of grant of your RSR award (the “Grant Date”) and the
number of RSRs applicable to your award are set forth in the letter from the Company announcing
your RSR award (your “Grant Letter”) and are also reflected in the electronic stock plan award
recordkeeping system (“Stock Plan System”) maintained by the Company or its designee. These Terms
apply only with respect to the 2011 RSR award. If you were granted an RSR award, you are referred
to as the “Grantee” with respect to your award. Capitalized terms are generally defined in Section
10 below if not otherwise defined herein.

     Each RSR represents a right to receive one share of the Company’s Common Stock, or cash of
equivalent value as provided herein, subject to vesting as provided herein. The number of RSRs
subject to your award is subject to adjustment as provided herein. The RSR award is subject to all
of the terms and conditions set forth in these Terms, and is further subject to all of the terms
and conditions of the Plan, as it may be amended from time to time, and any rules adopted by the
Committee, as such rules are in effect from time to time.

1. Vesting; Issuance of Shares.

     Subject to Sections 2 and 5 below, one hundred percent (100%) of the number of RSRs subject to
your award (subject to adjustment as provided in Section 5.1) shall vest upon the fourth
anniversary of the Grant Date.

     Except as otherwise provided below, the Company shall pay a vested RSR within 90 days
following the vesting of the RSR on the fourth anniversary of the Grant Date. The Company shall
pay such vested RSRs in either an equivalent number of shares of Common Stock, or, in the
discretion of the Committee, in cash or in a combination of shares of Common Stock and cash. In
the event of a cash payment, the amount of the payment for vested RSR to be paid in cash (subject
to tax withholding as provided in Section 6 below) will equal the Fair Market Value (as defined
below) of a share of Common Stock as of the date that such RSR became vested. No fractional shares
will be issued.

2. Early Termination of Award; Termination of Employment.

     2.1 General. The RSRs subject to the award, to the extent not previously vested, shall
terminate and become null and void if and when (a) the award terminates in connection with a Change
in Control pursuant to Section 5 below, or (b) except as provided in Sections 2.6 and 2.7, and in
Section 5, the Grantee ceases for any reason to be an employee of the Company or one of its
subsidiaries.

     2.2 Leave of Absence. Unless the Committee otherwise provides (at the time of the leave or
otherwise), if the Grantee is granted a leave of absence by the Company, the Grantee (a) shall not
be deemed to have incurred a termination of employment at the time such leave commences for
purposes of the award, and (b) shall be deemed to be employed by the Company for the duration of
such approved leave of absence for purposes of the award. A termination of employment shall be
deemed to have occurred if the Grantee does not timely return to active employment upon the
expiration of such approved leave or if the Grantee commences a leave that is not approved by the
Company.

     2.3 Salary Continuation. Subject to Section 2.2 above, the term “employment” as used herein
means active employment by the Company and salary continuation without active employment (other
than a leave of absence approved by the Company that is covered by Section 2.2) will not, in and of
itself, constitute “employment” for purposes hereof (in the case of salary continuation without
active employment, the Grantee’s cessation of active employee status shall, subject to Section 2.2,
be deemed to be a termination of “employment” for purposes hereof). Furthermore, salary
continuation will not, in and of itself, constitute a leave of absence approved by the Company for
purposes of the award.

     2.4 Sale or Spinoff of Subsidiary or Business Unit. For purposes of the RSRs subject to the
award, a termination of employment of the Grantee shall be deemed to have occurred if the Grantee
is employed by a subsidiary or business unit and that subsidiary or business unit is sold, spun
off, or otherwise divested, the Grantee does not otherwise continue to be employed by the Company
after such event, and the divested entity or business (or its successor or a parent company) does
not assume the award in connection with such transaction. In the event of such a termination of
employment, the

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termination shall be deemed to be an Early Retirement unless the Grantee was
otherwise eligible at the time of termination for Normal Retirement (in which case, the termination
shall be considered a Normal Retirement) treated as provided for in Section 2.7 (subject to Section
5).

     2.5 Continuance of Employment Required. Except as expressly provided in Section 2.6, Section
2.7 and in Section 5, the vesting of the RSRs subject to the award requires continued employment
through the fourth anniversary of the Grant Date as a condition to the vesting of any portion of
the award. Employment for only a portion of the vesting period, even if a substantial portion,
will not entitle the Grantee to any proportionate vesting or avoid or mitigate a termination of
rights and benefits upon or following a termination of employment. Nothing contained in these
Terms, the Stock Plan System, or the Plan constitutes an employment commitment by the Company or
any subsidiary, affects the Grantee’s status (if the Grantee is otherwise an at-will employee) as
an employee at will who is subject to termination without cause, confers upon the Grantee any right
to continue in the employ of the Company or any subsidiary, or interferes in any way with the right
of the Company or of any subsidiary to terminate such employment at any time.

     2.6 Death or Disability. If the Grantee dies or incurs a Disability while employed by the
Company or a subsidiary and such death or Disability occurs more than six months after the Grant
Date, the outstanding and previously unvested RSRs subject to the award shall vest as of the date
of the Grantee’s death or Disability, as applicable. Any remaining unvested RSRs, after giving
effect to the foregoing sentence, shall terminate immediately upon the Grantee’s death or
Disability. RSRs vesting under this Section shall be paid in the calendar year containing the
75th day (and generally will be paid on or about such 75th day) following the
earlier of (a) Grantee’s death or (b) Grantee’s Disability. In the event of the Grantee’s death
prior to the delivery of shares or other payment with respect to any vested RSRs, the Grantee’s
Successor shall be entitled to any payments to which the Grantee would have been entitled under
this Agreement with respect to such vested and unpaid RSRs.

     2.7 Termination of Employment Due to Retirement. If the Grantee ceases to be employed by the
Company or one of its subsidiaries due to the Grantee’s Early Retirement and such Early Retirement
occurs more than six months after the Grant Date, the RSRs subject to the award shall vest on a
prorated basis. Such prorating of RSRs shall be determined based on the number of days the Grantee
was employed by the Company or a subsidiary in the period commencing with the Grant Date through
and including the date on which the Grantee is last employed by the Company or a subsidiary, over
the number of calendar days in the period commencing with the Grant Date through and including the
fourth anniversary of the Grant Date. Any remaining unvested RSRs, after giving effect to the
foregoing acceleration of vesting, shall terminate immediately upon the Grantee’s Early Retirement.
If the Grantee ceases to be employed by the Company or one of its subsidiaries due to the
Grantee’s Normal Retirement and such Normal Retirement occurs more than six months after the Grant
Date, the RSRs subject to the award shall vest in full.

     Subject to the following provisions of this paragraph, RSRs vesting under this Section shall
be paid in the calendar year containing the 75th day (and generally will be paid on or
about such 75th day) following the Grantee’s Separation from Service. However, in the
case of a Governmental Service Retirement by the Grantee, payment of the vested RSRs will be made
within 10 days after the Grantee’s Early or Normal Retirement. If the Grantee is a “specified
employee” within the meaning of United States Treasury Regulation Section 1.409A-1(i) as of the
date of the Grantee’s Separation from Service, the Grantee shall not be entitled to payment of his
vested RSRs pursuant to this Section until the earlier of (and payment shall be made upon or
promptly after, and in all events within thirty (30) days after, the first to occur of) (a) the
date which is six (6) months and one day after the Grantee’s Separation from Service, or (b) the
date of the Grantee’s death. The provisions of the preceding sentence shall only apply if, and to
the extent, required to avoid the imputation of any tax, penalty or interest pursuant to Section
409A of the Code.

     In determining the Grantee’s eligibility for Early or Normal Retirement, service is measured
by dividing (a) the number of days the Grantee was employed by the Company or a subsidiary in the
period commencing with his or her last date of hire by the Company or a subsidiary through and
including the date on which the Grantee is last employed by the Company or a subsidiary, by (b)
365. If the Grantee ceased to be employed by the Company or a subsidiary and was later rehired by
the Company or a subsidiary, the Grantee’s service prior to the break in service shall be
disregarded in determining service for such purposes; provided that, if the Grantee’s employment
with the Company or a subsidiary had terminated due to the Grantee’s Early Retirement, Normal
Retirement, or by the Company as part of a reduction in force (in each case, other than a
termination by the Company or a subsidiary for cause) and, within the two-year period following
such termination of employment (the “break in service”) the Grantee was subsequently rehired by the
Company or a subsidiary, then the Grantee’s period of service with the Company or a subsidiary
prior to and ending with the break in service will be included in determining service for such
purposes. In the event the Grantee is employed by a business that is acquired by the Company or a
subsidiary, the Company shall have discretion to

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determine whether the Grantee’s service prior to
the acquisition will be included in determining service for such purposes.

3. Non-Transferability and Other Restrictions.

     3.1 Non-Transferability. The award, as well as the RSRs subject to the award, are
non-transferable and shall not be subject in any manner to sale, transfer, anticipation,
alienation, assignment, pledge, encumbrance or charge. The foregoing transfer restrictions shall
not apply to transfers to the Company. Notwithstanding the foregoing, the Company may honor any
transfer required pursuant to the terms of a court order in a divorce or similar domestic relations
matter to the extent that such transfer does not adversely affect the Company’s ability to register
the offer and sale of the underlying shares on a Form S-8 Registration Statement and such transfer
is otherwise in compliance with all applicable legal, regulatory and listing requirements.

     3.2 Recoupment of Awards. Any payments or issuances of shares with respect to the award are
subject to recoupment pursuant to the Company’s Policy Regarding the Recoupment of Certain
Performance-Based Compensation Payments as in effect from time to time, as well as any recoupment
or similar provisions of applicable law, and the Grantee shall promptly make any reimbursement
requested by the Board or Committee pursuant to such policy or applicable law with respect to the
award. Further, the Grantee agrees, by accepting the award, that the Company and its affiliates
may deduct from any amounts it may owe the Grantee from time to time (such as wages or other
compensation) to the extent of any amounts the Grantee is required to reimburse the Company
pursuant to such policy or applicable law with respect to the award.

4. Compliance with Laws; No Stockholder Rights Prior to Issuance.

     The Company’s obligation to make any payments or issue any shares with respect to the award is
subject to full compliance with all then applicable requirements of law, the Securities and
Exchange Commission, the Commissioner of Corporations of the State of California, or other
regulatory agencies having jurisdiction over the Company and its shares, and of any exchange upon
which stock of the Company may be listed. The Grantee shall not have the rights and privileges of
a stockholder, including without limitation the right to vote or receive dividends, with respect to
any shares which may be issued in respect of the RSRs until the date appearing on the
certificate(s) for such shares (or, in the case of shares entered in book entry form, the date that
the shares are actually recorded in such form for the benefit of the Grantee), if such shares
become deliverable.

5. Adjustments; Change in Control.

     5.1 Adjustments. The RSRs and the shares subject to the award are subject to adjustment upon
the occurrence of events such as stock splits, stock dividends and other changes in capitalization
in accordance with Section 6(a) of the Plan. In the event of any adjustment, the Company will give
the Grantee written notice thereof which will set forth the nature of the adjustment.

     5.2 Possible Acceleration on Change in Control. Notwithstanding the Company’s ability to
terminate the award as provided in Section 5.3 below, the outstanding and previously unvested RSRs
subject to the award shall become fully vested as of the date of the Grantee’s termination of
employment in the following circumstances:

		(a) 	if the Grantee is covered by a Change in Control Severance Arrangement at the time of the
termination, if the termination of employment constitutes a “Qualifying Termination” (as
such term, or any similar successor term, is defined in such Change in Control Severance
Arrangement) that triggers the Grantee’s right to severance benefits under such Change in
Control Severance Arrangement.

		(b) 	if the Grantee is not covered by a Change in Control Severance Arrangement at the time of
the termination and if the termination occurs either within the Protected Period
corresponding to a Change in Control of the Company or within twenty-four (24) calendar
months following the date of a Change in Control of the Company, the Grantee’s employment by
the Company and its subsidiaries is involuntarily terminated by the Company and its
subsidiaries for reasons other than Cause or by the Grantee for Good Reason.

     Notwithstanding anything else contained herein to the contrary, the termination of the
Grantee’s employment (or other events giving rise to Good Reason) shall not entitle the Grantee to
any accelerated vesting pursuant to clause (b)
above if there is objective evidence that, as of the commencement of the Protected Period, the
Grantee had specifically been identified by the Company as an employee whose employment would be
terminated as part of a corporate restructuring or downsizing program that commenced prior to the
Protected Period and such termination of employment was expected at that time to occur within six
(6) months. The applicable Change in Control Severance Arrangement shall govern the matters
addressed in this paragraph as to clause (a) above.

     Payment of any RSRs that vest under this Section will be made at the time provided for in
Section 2.7 as

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though the termination of the Grantee’s employment was due to a Normal Retirement.

     5.3 Automatic Acceleration; Early Termination. If the Company undergoes a Change in Control
triggered by clause (iii) or (iv) of the definition thereof and the Company is not the surviving
entity and the successor to the Company (if any) (or a Parent thereof) does not agree in writing
prior to the occurrence of the Change in Control to continue and assume the award following the
Change in Control, or if for any other reason the award would not continue after the Change in
Control, then upon the Change in Control the outstanding and previously unvested RSRs subject to
the award shall vest fully and completely. Unless the Committee expressly provides otherwise in
the circumstances, no acceleration of vesting of the award shall occur pursuant to this Section 5.3
in connection with a Change in Control if either (a) the Company is the surviving entity, or (b)
the successor to the Company (if any) (or a Parent thereof) agrees in writing prior to the Change
in Control to assume the award. The Committee may make adjustments pursuant to Section 6(a) of the
Plan and/or deem an acceleration of vesting of the award pursuant to this Section 5.3 to occur
sufficiently prior to an event if necessary or deemed appropriate to permit the Grantee to realize
the benefits intended to be conveyed with respect to the shares underlying the RSRs; provided,
however, that, the Committee may reinstate the original terms of the award if the related event
does not actually occur.

     Payment of any RSRs that vest under this Section 5.3 will be made within 90 days of the fourth
anniversary of the Grant Date unless: (i) the Grantee dies or has a Disability, in which case such
payment will be made in the calendar year containing the 75th day following the date of
the Grantee’s death or Disability, as the case may be (and generally will be paid on or about such
75th day), or (ii) the Grantee has a Separation from Service, in which case such payment
will be made at the time provided for in Section 2.7 as though the termination of the Grantee’s
employment was due to a Normal Retirement.

6. Tax Matters.

     6.1 Tax Withholding. The Company or the subsidiary which employs the Grantee shall be
entitled to require, as a condition of making any payments or issuing any shares upon vesting of
the RSRs, that the Grantee or other person entitled to such shares or other payment pay any sums
required to be withheld by federal, state, local or other applicable tax law with respect to such
vesting or payment. Alternatively, the Company or such subsidiary, in its discretion, may make
such provisions for the withholding of taxes as it deems appropriate (including, without
limitation, withholding the taxes due from compensation otherwise payable to the Grantee or
reducing the number of shares otherwise deliverable with respect to the award (valued at their then
Fair Market Value) by the amount necessary to satisfy such withholding obligations at the flat
percentage rates applicable to supplemental wages).

     6.2 Transfer Taxes. The Company will pay all federal and state transfer taxes, if any, and
other fees and expenses in connection with the issuance of shares in connection with the vesting of
the RSRs.

     6.3 Compliance with Code. The Committee shall administer and construe the award, and may
amend the Terms of the award, in a manner designed to comply with the Code and to avoid adverse tax
consequences under Code Section 409A or otherwise.

     6.4 Unfunded Arrangement. The right of the Grantee to receive payment under the award shall be
an unsecured contractual claim against the Company. As such, neither the Grantee nor any Successor
shall have any rights in or against any specific assets of the Company based on the award. Awards
shall at all times be considered entirely unfunded for tax purposes.

7. Committee Authority.

     The Committee has the discretionary authority to determine any questions as to the date when
the Grantee’s employment terminated and the cause of such termination and to interpret any
provision of these Terms, the Grant Letter, the Stock Plan System, the Plan, and any other
applicable rules. Any action taken by, or inaction of, the Committee relating to or pursuant to
these Terms, the Grant Letter, the Stock Plan System, the Plan, or any other applicable rules shall
be within the absolute discretion of the Committee and shall be conclusive and binding on all
persons.

8. Plan; Amendment.

     The RSRs are governed by, and the Grantee’s rights are subject to, all of the terms and
conditions of the Plan and any other rules adopted by the Committee, as the foregoing may be
amended from time to time. The Grantee shall have no rights with respect to any amendment of these
Terms or the Plan unless such amendment is in writing and signed by a duly authorized officer of
the Company. In the event of a conflict between the provisions of the Grant Letter and/or the
Stock Plan System and the provisions of these Terms and/or the Plan, the provisions of these Terms
and/or the Plan, as applicable, shall govern.

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9. Required Holding Period.

     The holding requirements of this Section 9 shall apply to any Grantee who is an elected or
appointed officer of the Company on the date vested RSRs are paid (or, if earlier, on the date the
Grantee’s employment by the Company and its subsidiaries terminates for any reason). Any Grantee
subject to this Section 9 shall not be permitted to sell, transfer, anticipate, alienate, assign,
pledge, encumber or charge 50% of the total number (if any) of shares of Common Stock the Grantee
receives as payment for vested RSRs until the earlier of (A) the third anniversary of the date such
shares of Common Stock are paid to the Grantee, or (B) the date the Grantee’s employment by the
Company and its subsidiaries terminates due to the Grantee’s death or Disability. For purposes of
this Section 9, the total number of shares of Common Stock the Grantee receives as payment for
vested RSRs shall be determined on a net basis after taking into account any shares otherwise
deliverable with respect to the award that the Company withholds to satisfy tax obligations
pursuant to Section 6.1. Any shares of Common Stock received in respect of shares that are
covered by the holding period requirements of this Section 9 (such as shares received in respect of
a stock split or stock dividend) shall be subject to the same holding period requirements as the
shares to which they relate.

10. Definitions.

     Whenever used in these Terms, the following terms shall have the meanings set forth below and,
when the meaning is intended, the initial letter of the word is capitalized:

     “Board” means the Board of Directors of the Company.

     “Cause” means the occurrence of either or both of the following:

		(i) 	The Grantee’s conviction for committing an act of fraud, embezzlement, theft, or other
act constituting a felony (other than traffic related offenses or as a result of vicarious
liability); or

		(ii)	The willful engaging by the Grantee in misconduct that is significantly injurious to the
Company. However, no act, or failure to act, on the Grantee’s part shall be considered
“willful” unless done, or omitted to be done, by the Grantee not in good faith and without
reasonable belief that his action or omission was in the best interest of the Company.

     “Change in Control” is used as defined in the Plan.

     “Change in Control Severance Arrangement” means a “Special Agreement” entered into by and
between the Grantee and the Company that provides severance protections in the event of certain
changes in control of the Company or the Company’s Change-in-Control Severance Plan, as each may be
in effect from time to time, or any similar successor agreement or plan that provides severance
protections in the event of a change in control of the Company.

     “Code” means the United States Internal Revenue Code of 1986, as amended.

     “Committee” means the Company’s Compensation Committee or any successor committee appointed by
the Board to administer the Plan.

     “Common Stock” means the Company’s common stock.

     “Disability” means, with respect to a Grantee, that the Grantee: (i) is unable to engage in
any substantial gainful activity by reason of any medically determinable physical or mental
impairment which can be expected to result in death or can be expected to last for a continuous
period of not less than twelve months; or (ii) is, by reason of any medically determinable physical
or mental impairment which can be expected to result in death or can be expected to last for a
continuous period of not less than twelve months, receiving income replacement benefits for a
period of not less than three
months under an accident and health plan covering employees of the Grantee’s employer; all
construed and interpreted consistent with the definition of “Disability” set forth in Code Section
409A(a)(2)(C).

     “Early Retirement” means that the Grantee’s employment terminates in any of the following
circumstances, and other than a termination of employment that constitutes a Normal Retirement or
occurs in connection with a termination by the Company or a subsidiary for cause:

		(i) 	a termination of employment after the Grantee has attained age 55 with at least
10 years of service.

		(ii)	a termination of employment by the Company or a subsidiary as part of a reduction in
force and, at the time of such termination, the Grantee has attained age 53 with at least 10
years of service.

		(iii)	a termination of employment by the Company or a subsidiary as part of a reduction in
force and, at the time of such termination, the sum of the Grantee’s age and years of
service is at least 75.

     “Fair Market Value” is used as defined in the Plan; provided, however, the Committee in
determining such Fair Market Value for purposes of the award may

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utilize such other exchange,
market, or listing as it deems appropriate.

     “Good Reason” means, without the Grantee’s express written consent, the occurrence of any one
or more of the following:

		(i) 	A material and substantial reduction in the nature or status of the Grantee’s authorities
or responsibilities (when such authorities and/or responsibilities are viewed in the
aggregate) from their level in effect on the day immediately prior to the start of the
Protected Period, other than (A) an inadvertent act that is remedied by the Company promptly
after receipt of notice thereof given by the Grantee, and/or (B) changes in the nature or
status of the Grantee’s authorities or responsibilities that, in the aggregate, would
generally be viewed by a nationally-recognized executive placement firm as resulting in the
Grantee having not materially and substantially fewer authorities and responsibilities
(taking into consideration the Company’s industry) when compared to the authorities and
responsibilities applicable to the position held by the Grantee immediately prior to the
start of the Protected Period. The Company may retain a nationally-recognized executive
placement firm for purposes of making the determination required by the preceding sentence
and the written opinion of the firm thus selected shall be conclusive as to this issue.

	 	 	In addition, if the Grantee is a vice president, the Grantee’s loss of vice-president status
will constitute “Good Reason”; provided that the loss of the title of “vice president” will
not, in and of itself, constitute Good Reason if the Grantee’s lack of a vice president title
is generally consistent with the manner in which the title of vice president is used within
the Grantee’s business unit or if the loss of the title is the result of a promotion to a
higher level office. For the purposes of the preceding sentence, the Grantee’s lack of a
vice-president title will only be considered generally consistent with the manner in which
such title is used if most persons in the business unit with authorities, duties, and
responsibilities comparable to those of the Grantee immediately prior to the commencement of
the Protected Period do not have the title of vice-president.

		(ii) 	A reduction by the Company in the Grantee’s annualized rate of base salary as in effect
at the start of the Protected Period, or as the same shall be increased from time to time.

		(iii)	A material reduction in the aggregate value of the Grantee’s level of participation in
any of the Company’s short and/or long-term incentive compensation plans (excluding
stock-based incentive compensation plans), employee benefit or retirement plans, or
policies, practices, or arrangements in which the Grantee participates immediately prior to
the start of the Protected Period; provided, however, that a reduction in the aggregate
value shall not be deemed to be “Good Reason” if the reduced value remains substantially
consistent with the average level of other employees who have positions commensurate with
the position held by the Grantee immediately prior to the start of the Protected Period.

		(iv)	A material reduction in the Grantee’s aggregate level of participation in the Company’s
stock-based incentive compensation plans from the level in effect immediately prior to the
start of the Protected Period; provided, however, that a reduction in the aggregate level of
participation shall not be deemed to be “Good Reason” if the reduced level of participation
remains substantially consistent with the average level of participation of other employees
who have positions commensurate with the position held by the Grantee immediately prior to
the start of the Protected Period.

		(v) 	The Grantee is informed by the Company that his or her principal place of employment for
the Company will be relocated to a location that is greater than fifty (50) miles away from
the Grantee’s principal place of employment for the Company at the start of the
corresponding Protected Period; provided that, if the Company communicates an intended
effective date for such relocation, in no event shall Good Reason exist pursuant to this
clause (v) more than ninety (90) days before such intended effective date.

     The Grantee’s right to terminate employment for Good Reason shall not be affected by the
Grantee’s incapacity due to physical or mental illness. The Grantee’s continued employment shall
not constitute a consent to, or a waiver of rights with respect to, any circumstances constituting
Good Reason herein.

     “Governmental Service Retirement” means an Early or Normal Retirement by the Grantee where the
Grantee accepts a position in the federal government or a state or local government and an
accelerated distribution under the award is permitted under Code Section 409A based on such
government employment and related ethics rules.

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     “Normal Retirement” means that the Grantee terminates employment after attaining age 65 with
at least 10 years of service (other than in connection with a termination by the Company or a
subsidiary for cause). In the case of a Grantee who is an officer of the Company subject to the
Company’s mandatory retirement at age 65 policy and who, at the applicable time, is not otherwise
eligible for Normal Retirement as defined in the preceding sentence, “Normal Retirement” as to that
Grantee means that the Grantee’s employment is terminated pursuant to such mandatory retirement
policy (regardless of the Grantee’s years of service and other than in connection with a
termination by the Company or a subsidiary for cause).

     “Parent” is used as defined in the Plan.

     “Plan” means the Northrop Grumman 2001 Long-Term Incentive Stock Plan, as it may be amended
form time to time.

     The “Protected Period” corresponding to a Change in Control of the Company shall be a period
of time determined in accordance with the following:

		(i) 	If the Change in Control is triggered by a tender offer for shares of the Company’s stock
or by the offeror’s acquisition of shares pursuant to such a tender offer, the Protected
Period shall commence on the date of the initial tender offer and shall continue through and
including the date of the Change in Control; provided that in no case will the Protected
Period commence earlier than the date that is six (6) months prior to the Change in Control.

		(ii) 	If the Change in Control is triggered by a merger, consolidation, or reorganization of
the Company with or involving any other corporation, the Protected Period shall commence on
the date that serious and substantial discussions first take place to effect the merger,
consolidation, or reorganization and shall continue through and including the date of the
Change in Control; provided that in no case will the Protected Period commence earlier than
the date that is six (6) months prior to the Change in Control.

		(iii)	In the case of any Change in Control not described in clause (i) or (ii) above, the
Protected Period shall commence on the date that is six (6) months prior to the Change in
Control and shall continue through and including the date of the Change in Control.

     “Separation from Service” means when the Grantee dies, retires, or otherwise has a termination
of employment with the Company and its subsidiaries that constitutes a “separation from service”
within the meaning of United States Treasury Regulation Section 1.409A-1(h)(1), without regard to
the optional alternative definitions available thereunder.

     “Successor” means the person acquiring a Grantee’s rights to a grant under the Plan by will or
by the laws of descent or distribution.

7exv10w15

Exhibit 10.15

Group Personal Excess Liability Policy

Coverage Summary

	 	 	 

	 

	 	Chubb Group of Insurance Companies
	 

	 	15 Mountain View Road
	 

	 	Warren, NJ 07060
	 
	 	 
	Name and address of Insured

	 	Policy Number: (11) 7993-14-03 PLS
	 
	 	 
	VICE PRESIDENTS, NON OFFICERS & RETIREES
	 	 
	OF NORTHROP GRUMMAN CORPORATION
	 	 
	1840 CENTURY PARK EAST, 152/CC
	 	 
	LOS ANGELES, CALIFORNIA

	 	Issued by the stock insurance company
	90067

	 	indicated below, herein called the company.
	 
	 	 
	 

	 	FEDERAL INSURANCE COMPANY
	 
	 	 
	Producer No.: 0006185

	 	Incorporated under the laws of INDIANA
	 
	 	 
	Sponsoring Organization and Address
	 	 
	 
	 	 
	NORTHROP GRUMMAN CORPORATION 
	 	 
	1840 CENTURY PARK EAST, 152/CC
	 	 
	LOS ANGELES, CA90067
	 	 

Policy Period

From: NOVEMBER 01, 2010 To: NOVEMBER 01, 2011

12:01 A.M. Standard Time at the Named Insured’s mailing address.

Premium

Amount 

$148,500.00

Limit Of Liability

	 	 	 

	SEE ENDT

	 	Each Occurrence
	$2,000,000

	 	Excess Uninsured / Underinsured
	 

	 	Motorists Protection Each Occurrence

Required Primary Underlying Insurance

Personal Liability (Homeowners) for personal injury and property damage in the minimum
amount of $100,000 each occurrence.

Registered vehicles in the minimum amount of $250,000 / $500,000 bodily injury and $100,000
property damage; or $300,000 single limit each occurrence.

			
	 	 	 
	Group Personal Excess Liability Policy
	 	continued
	Form 10-02-0690 (Rev. 8-07) Declarations
	 	Page 1

 

Required Primary Underlying Insurance

(continued)

Unregistered vehicles in the minimum amount of $100,000 bodily injury and property damage
each occurrence.

Registered vehicles with less than four wheels and motorhomes in the minimum amount $250,000 /
$500,000 bodily injury and $100,000 property damage; or $300,000 single limit each occurrence.

Watercraft less than 26 feet and 50 engine rated horsepower or less for bodily and property
damage in the minimum amount of $100,000 each occurrence.

Watercraft 26 feet or longer or more than 50 engine rated horsepower for bodily injury and
property damage in the minimum amount of $500,000 each occurrence.

Uninsured motorists/underinsured motorists protection in the minimum amount of $250,000 /
$500,000 bodily injury and $100,000 property damage; or $300,000 single limit occurrence.

FAILURE TO COMPLY WITH THE REQUIRED PRIMARY UNDERLYING INSURANCE WILL RESULT IN A GAP IN
COVERAGE.

Authorization

In Witness Whereof, the company issuing this policy has caused this policy to be signed by
its authorized officers, but this policy shall not be valid unless also signed by a duly
authorized representative of the company.

FEDERAL INSURANCE COMPANY

	 	 	 

	

	 	
	President

	 	Secretary
	 
	Date

	 	
	OCTOBER 27, 2010

	 	Authorized Representative

Producer’s Name & Address

AON PRIVATE RISK MANAGEMENT OF CA. INS. AGENCY INC

707 WILSHIRE BL. 27TH FL 

LOS ANGELES, CA 90017-0000

			
	 	 	 
	Group Personal Excess Liability Policy
	 	last page
	Form 10-02-0690 (Rev. 8-07) Declarations
	 	Page 2

 

	 	 	 

	

	 	Schedule of Forms

	 	 	 

	Policy Number:

	 	(11) 7993-14-03 PLS
	Insured:

	 	VICE PRESIDENTS, NON OFFICERS
& RETIREES OF NORTHROP GRUMMAN CORPORATION
	Policy Period From:

	 	NOVEMBER 01, 2010 to NOVEMBER 01, 2011

The following is a schedule of forms issued with the policy at inception:

	 	 	 
	Form Name	 	Form Number
	IMPORTANT NOTICE — OFAC

	 	99-10-0796 (09/04)
	AOD POLICYHOLDER NOTICE

	 	99-10-0872 (06/07)
	COVERAGE SUMMARY/DECLARATIONS

	 	10-02-0690 (08/07)
	GROUP PERSONAL EXCESS — CONTRACT/POLICY TERMS

	 	10-02-0691 (08/07)
	CALIFORNIA-CANCELLATION & COV TERMINATION

	 	10-02-1849 (08/07)
	ANNUAL PREMIUM ADJUSTMENT CLAUSE

	 	10-02-0692 (08/96)
	NAMED INSURED ENDORSEMENT

	 	10-02-0692 (08/96)

			
	 	 	 
	Page 1

Form 10-02-0414 (Ed. 9/93)
	 	Last page

 

GROUP PERSONAL

EXCESS LIABILITY

POLICY

			
	 	 	 
	Form 10-02-0691 (Rev. 8-07)
	 	Page 1 of 15

 

 

			
	
	 	
GROUP PERSONAL EXCESS LIABILITY POLICY

INTRODUCTION

This is your Chubb Group Personal Excess Liability Policy. Together with your
Coverage Summary, it explains your coverages and other conditions of your insurance in
detail.

This policy is a contract between you and us. READ YOUR POLICY CAREFULLY and keep it
in a safe place.

Agreement

We agree to provide the insurance described in this policy in return for the
premium paid by you or the Sponsoring Organization and your compliance with the
policy conditions.

Definitions

In this policy, we use words in their plain English meaning. Words with
special meanings are defined in the part of the policy where they are used. The few
defined terms used throughout the policy are defined here:

You means the individual who is a member of the Defined Group shown as the Insured
named in the Coverage Summary.

We and us mean the insurance company named in the Coverage Summary.

Family member means your spouse or domestic partner or other relative who lives with
you, or any other person under 25 in your care or your relative’s care who lives with
you.

Domestic partner means a person in a legal or personal relationship with you, who lives
with you and shares a common domestic life with you, and meeting all of the benefits
eligibility criteria as defined by the Sponsoring Organization.

Sponsoring Organization means the entity, corporation, partnership or sole
proprietorship sponsoring and defining the criteria for qualification as an Insured.

Policy means your entire Group Personal Excess Liability Policy, including the Coverage Summary.

Coverage Summary means the most recent Coverage Summary we issued to you, including any
endorsements.

Occurrence means an accident or offense to which this insurance applies and which
begins within the policy period. Continuous or repeated exposure to substantially
the same general conditions unless excluded is considered to be one occurrence.

Business means any employment, trade, occupation, profession, or farm operation including the
raising or care of animals.

Defined Group means those individuals meeting the criteria for qualification as an
Insured as defined by the Sponsoring Organization and accepted by us.

Follow form means we cover damages to the extent they are both covered under the
Required Primary Underlying Insurance and, not excluded under this policy. Also, the
amount of coverage, defense coverages, cancellation and “other insurance” provisions of
this policy supersede and replace the similar provisions contained in such other
policies. When this policy is called upon to pay losses in excess of required primary
underlying policies exhausted by payment of claims, we do not provide broader coverage
than provided by such policies. When no primary underlying coverage exists, the extent
of coverage provided on a follow form basis will be determined as if the required
primary underlying insurance had been purchased from us.

Covered person means:

	•	 	you or a family member;
	 
	•	 	any person using a vehicle or watercraft covered under this policy with
permission from you or a family member with respect to their legal
responsibility arising out of its use;
	 
	•	 	any other person who is a covered person under your Required Primary Underlying Insurance;
	 
	•	 	any person or organization with respect to their legal responsibility for
covered acts or omissions of you or a family member; or
	 
	•	 	any combination of the above.

Damages mean the sum that is paid or is payable to satisfy a claim settled by us or
resolved by judicial procedure or by a compromise we agree to in writing.

Personal injury means the following injuries, and resulting death:

	•	 	bodily injury;
	 
	•	 	shock, mental anguish, or mental injury;

			
	 	 	 
	Form 10-02-0691 (Rev. 8-07)
	 	Page 2 of 15

 

 

Definitions

(continued)

	•	 	false arrest, false imprisonment, or wrongful detention;
	 
	•	 	wrongful entry or eviction;
	 
	•	 	malicious prosecution or humiliation; and
	 
	•	 	libel, slander, defamation of character, or invasion of privacy.

Bodily injury means physical bodily harm, including sickness or disease that results
from it, and required care, loss of services and resulting death.

Property damage means physical injury to or destruction of tangible property and the
resulting loss of its use. Tangible property includes the cost of recreating or
replacing stocks, bonds, deeds, mortgages, bank deposits, and similar instruments, but
does not
include the value represented by such instruments. Tangible property does not include
the cost of recreating or replacing any software, data or other information that is in
electronic form.

Registered vehicle means any motorized land vehicle not described in “unregistered vehicle.”

Unregistered vehicle means:

	•	 	any motorized land vehicle not designed for or required to be registered for use on public roads;
	 
	•	 	any motorized land vehicle which is in dead storage at your residence;
	 
	•	 	any motorized land vehicle used solely on and to service your residence premises;
	 
	•	 	any motorized land vehicle used to assist the disabled that is not designed for or
required to be registered for use on public roads; or
	 
	•	 	golf carts.

GROUP PERSONAL EXCESS LIABILITY COVERAGE

This part of your Group Personal Excess Liability Policy provides you or a family
member with liability coverage in excess of your underlying insurance anywhere in the
world unless stated otherwise or an exclusion applies.

Payment for a Loss

Amount of coverage

The amount of coverage for liability is shown in the Coverage Summary. We will pay
on your behalf up to that amount for covered damages from any one occurrence, regardless
of how many claims, homes, vehicles, watercraft, or people are involved in the
occurrence.

Any costs we pay for legal expenses (see Defense coverages) are in addition to the
amount of coverage.

Underlying Insurance

We will pay only for covered damages in excess of all underlying
insurance covering those damages, even if the underlying coverage is for more than the
minimum amount.

“Underlying insurance” includes all liability coverage that applies to the covered
damages, except for other insurance purchased in excess of this policy.

Required primary underlying insurance

Regardless of whatever other primary underlying insurance may be available in the
event of a claim or loss, it is a condition of your policy that you and your family
members must maintain in full effect primary underlying liability insurance of the types
and in at least the amounts set forth below unless a different amount is shown in your
Coverage Summary, covering your personal liability and to the extent you or a family
member have such liability exposures, all vehicles and watercraft you or your family
members own, or rent for longer than 60 days, or have furnished for longer than 60 days,
as follows:

Personal liability (homeowners) for personal injury and property damage in the minimum
amount of $300,000 each occurrence.

			
	 	 	 
	Form 10-02-0691 (Rev. 8-07)
	 	Page 3 of 15

 

 

			
	
	 	GROUP PERSONAL EXCESS LIABILITY POLICY

Payment for a Loss

(continued)

Registered vehicles in the minimum amount of:

	•	 	$250,000/$500,000 bodily injury and $100,000 property damage;
	 
	•	 	$300,000/$300,000 bodily injury and $100,000 property damage; or
	 
	•	 	$300,000 single limit each occurrence.

Unregistered vehicles in the minimum amount of $300,000 bodily injury and property
damage each occurrence.

Registered vehicles with less than four wheels and motorhomes
in the minimum amount of:

	•	 	$250,000/$500,000 bodily injury and $100,000 property damage;
	 
	•	 	$300,000/$300,000 bodily injury and $100,000 property damage; or
	 
	•	 	$300,000 single limit each occurrence.

Watercraft less than 26 feet and 50 engine rated horsepower or less for
bodily injury and property damage in the minimum amount of $300,000 each occurrence.

Watercraft 26 feet or longer or more than 50 engine rated horsepower for bodily injury
and property damage in the minimum amount of $500,000 each occurrence.

Uninsured motorists/underinsured motorist protection in the minimum amounts of:

	•	 	$250,000/$500,000 bodily injury and $100,000 property damage;
	 
	•	 	$300,000/$300,000 bodily injury and $100,000 property damage; or
	 
	•	 	$300,000 single limit each occurrence.

With respect to you and your family members residing outside of the United States, the
required primary underlying insurance limits of liability shall be the same limits of
liability as shown above, unless you and your family members reside in a country where
the minimum required primary underlying insurance limits of liability are not
available. In these countries, you and your family members must maintain in full effect
primary underlying liability insurance limits equal to the maximum limits of liability
available in that country for all coverages up to the minimum required primary
underlying limits shown in the Coverage Summary under Required Primary Underlying
Insurance.

Failure by you or your family members to comply with this condition, or failure of any
of your primary underlying insurers due to insolvency or bankruptcy, shall not
invalidate this policy. In the event of any such failure, we shall only be liable in
excess of the foregoing minimum amounts and to no greater extent with respect to
coverages, amounts and defense costs than we would have been had this failure not
occurred.

You must also give notice of losses and otherwise cooperate and comply with the terms
and conditions of such primary underlying insurance.

Excess Liability Coverage

We cover damages a covered person is legally obligated to pay for personal injury
or property damage, caused by an occurrence:

	•	 	in excess of damages covered by the underlying insurance; or
	 
	•	 	from the first dollar of damage where no underlying insurance is required under
this policy and no underlying insurance exists; or
	 
	•	 	from the first dollar of damage where underlying insurance is required under
this policy but no coverage is provided by the underlying insurance for a
particular occurrence

	 	 	unless stated otherwise or an exclusion applies.
	 
	 	 	Exclusions to this coverage are described in Exclusions.
	 
	 	 	Excess uninsured motorists/underinsured motorist protection
	 
	 	 	This coverage is in effect only if excess uninsured motorists/underinsured
motorists protection is shown in the Coverage Summary.

			
	Form 10-02-0691 (Rev. 8-07)
	 	Page 4 of 15

 

 

Excess Liability Coverage

(continued)

We cover damages for bodily injury and property damage a covered person is legally entitled
to receive from the owner or operator of an uninsured motorized/underinsured motorized land
vehicle. We cover these damages in excess of the underlying insurance or the Required Primary
Underlying Insurance, whichever is greater, if they are caused by an occurrence during the policy
period, unless otherwise stated.

Amount of coverage. The maximum amount of excess uninsured motorists/underinsured
motorists protection available for any one occurrence is the excess uninsured
motorists/underinsured motorists protection amount shown in the Coverage Summary regardless of
the number of vehicles covered by the Required Primary Underlying Insurance. We will not pay more
than this amount in any one occurrence for covered damages regardless of how many claims,
vehicles or people are involved in the occurrence.

This coverage will follow form.

Uninsured motorists/underinsured motorists protection arbitration

If we and a covered person disagree whether that person is legally entitled to recover
damages from the owner or operator of an uninsured motor vehicle/underinsured motor vehicle, or
do not agree as to the amount of damages, either party may make a written demand for arbitration.
In this event, each party will select an arbitrator. The two arbitrators will select a third. If
they cannot agree on a third arbitrator within 45 days, either may request that the arbitration
be submitted to the American Arbitration Association. When the covered person’s recovery exceeds
the minimum limit specified in the applicable jurisdiction’s financial responsibility law, each
party will pay the expenses it incurs, and bear the expenses of the third arbitrator equally.
Otherwise, we will bear all the expenses of the arbitration.

Unless both parties agree otherwise, arbitration will take place in the county and state in which
the covered person lives. Local rules of law as to procedure and evidence will apply. A decision
agreed to by two arbitrators will be binding unless the recovery amount for bodily injury exceeds
the minimum limit specified by the applicable jurisdiction’s financial responsibility law. If the
amount exceeds that limit, either party may demand the right to a trial. This demand must be made
within 60 days of the arbitrator’s decision. If this demand is not made, the amount of damages
agreed to by the arbitrators will be binding.

Defense coverages

We will defend a covered person against any suit seeking covered damages for personal
injury or property damage that is either:

	•	 	not covered by any underlying insurance; or
	 
	•	 	covered by an underlying policy. This will apply to each Defense Coverage as it has been exhausted by payment of claims.

We provide this defense at our expense, with counsel of our choice, even if the suit is
groundless, false, or fraudulent. We may investigate, negotiate, and settle any such claim or
suit at our discretion.

As part of our investigation, defense, negotiation, or settlement, we will pay:

	•	 	all premiums on appeal bonds required in any suit we defend;
	 
	•	 	all premiums on bonds to release attachments for any amount up to the amount of coverage
(but we are not obligated to apply for or furnish any bond);
	 
	•	 	all expenses incurred by us;
	 
	•	 	all costs taxed against a covered person;
	 
	•	 	all interest accruing after a judgment is entered in a suit we defend on only that part
of the judgment we are responsible for paying. We will not pay interest accruing after
we have paid the judgment up to the amount of coverage;
	 
	•	 	all prejudgment interest awarded against a covered person on that part of the judgment we
pay or offer to pay. We will not pay any prejudgment interest based on that period of time
after we make an offer to pay the amount of coverage;
	 
	•	 	all earnings lost by each covered person at our request, up to $25,000;
	 
	•	 	other reasonable expenses incurred by a covered person at our request; and
	 
	•	 	the cost of bail bonds required of a covered person because of a covered loss.

In jurisdictions where we may be prevented by local law from carrying out these Defense
Coverages, we will pay only those defense expenses that we agree in writing to pay and that are
incurred by you.

			
	Form 10-02-0691 (Rev. 8-07)
	 	Page 5 of 15

 

 

			
	
	 	GROUP PERSONAL EXCESS LIABILITY POLICY

Extra
Coverages

In addition to covering damages and defense costs, we also provide other related
coverages. These coverages are in addition to the amount of coverage for damages and
defense costs unless stated otherwise.

Shadow defense coverage

If we are defending you or a family member in a suit seeking covered damages, we
will pay reasonable expenses you or a family member incur up to $10,000 or the amount
shown in the Coverage Summary for a law firm of your choice to review and monitor the
defense. However any recommendation by your personal attorney is not binding on us. We
will pay these costs provided that you obtain prior approval from us before incurring any
fees or expenses.

Identity fraud

We will pay for your or a family member’s identity fraud expenses, up to a
maximum of $25,000, for each identity fraud occurrence.

“Identity fraud” means the act of knowingly transferring or using, without lawful
authority, your or a family member’s means of identity which constitutes a violation
of federal law or a crime under any applicable state or local law.

“Identity fraud occurrence” means any act or series of acts of identity fraud by a
person or group commencing in the policy period.

“Identity fraud expenses” means:

	•	 	the costs for notarizing affidavits or similar documents for law enforcement
agencies, financial institutions or similar credit grantors, and credit agencies;
	 
	•	 	the costs for sending certified mail to law enforcement agencies, financial
institutions or similar credit grantors, and credit agencies;
	 
	•	 	the loan application fees for reapplying for loan(s) due to the rejection of the
original application because the lender received incorrect credit information;
	 
	•	 	the telephone expenses for calls to businesses, law enforcement agencies,
financial institutions or similar credit grantors, and credit agencies;
	 
	•	 	earnings lost by you or a family member as a result of time off from work to
complete fraud affidavits, meet with law enforcement agencies, credit agencies,
merchants, or legal counsel;
	 
	•	 	the reasonable attorney fees incurred with prior notice to us for:
	 
	•	 	the defense of you or a family member against any suit(s) by businesses or their collection agencies;
	 
	•	 	the removal of any criminal or civil judgements wrongly entered against you or a family member;
	 
	•	 	any challenge to the information in your or a family member’s consumer credit report; and
	 
	•	 	the reasonable fees incurred with prior notice to us by an identity fraud mitigation entity to:
	 
	•	 	provide services for the activities described above;
	 
	•	 	restore accounts or credit standing with financial institutions or similar credit grantors and credit agencies; and
	 
	•	 	monitor for up to one year the effectiveness of the fraud mitigation and to
detect additional identity fraud activity after the first identify
fraud occurrence.

However, such monitoring must begin no later than one year after you or a family member
first report an identity fraud occurrence to us.

However, “identity fraud expenses” does not include expenses incurred due to any
fraudulent, dishonest or criminal act by a covered person or any person acting with a
covered person, or by any authorized representative of a covered person, whether
acting alone or in collusion with others.

“Identity fraud mitigation entity” means a company that principally provides professional,
specialized services to counter identity fraud for individuals or groups of individuals,
or a financial institution that provides similar services.

In addition to the duties described in Policy Terms, Liability Conditions, Your duties after a
loss, you shall notify an applicable law enforcement agency.

			
	Form 10-02-0691 (Rev. 8-07)
	 	Page 6 of 15

 

 

Extra Coverages

(continued)

Kidnap expenses

We will pay up to a maximum of $100,000 for kidnap expenses you or a family member
incurs solely and directly as a result of a kidnap and ransom occurrence. In addition, we
also will pay up to $25,000 to any person for information not otherwise available leading to
the arrest and conviction of any person(s) who kidnaps you, a family member or a covered
relative. The following are not eligible to receive this reward payment:

	•	 	you or a family member; or

	•	 	a covered relative who witnessed the occurrence.

“Kidnap and ransom occurrence” means the actual or alleged wrongful taking of:

	•	 	you;

	•	 	one or more family members; or

	•	 	one or more covered relatives while visiting or legally traveling with you or a family
member;

     from anywhere in the world except those places listed on the United States State Department
Bureau of Consular Affairs Travel Warnings list at the time of the occurrence. The occurrence
must include a demand for ransom payment which would be paid by you or a family member in
exchange for the release of the kidnapped person(s).

“Kidnap expenses” means the reasonable costs for:

	•	 	a professional negotiator;

	•	 	a professional security consultant;

	•	 	professional security guard services;

	•	 	a professional public relations consultant;

	•	 	travel, meals, lodging and phone expenses incurred by you or a family member;

	•	 	advertising, communications and recording equipment;

	•	 	related medical, cosmetic, psychiatric and dental expenses incurred by a kidnapped person
within 12 months from that person’s release;

	•	 	attorneys fees;

	•	 	a professional forensic analyst;

	•	 	earnings lost by you or a family member, up to $25,000.

However, “kidnap expenses” does not include expenses incurred due to any kidnap and ransom
occurrence caused by:

	•	 	you or a family member;

	•	 	a covered relative;

	•	 	any guardian, or former guardian of you, a family member or covered relative;

	•	 	any estranged spouse or domestic partner, or former spouse or domestic partner of you or a
family member;

	•	 	any person unrelated to you or a family member who lives with you or a family member or
has ever lived with you or a family member for 6 or more months, other than a domestic
employee, residential staff, or a person employed by you or a family member for farm work;
or

	•	 	a civil authority,

or any person acting on behalf of any of the above, whether acting alone or in collusion with
others.

“Covered relative” means the following relatives of you, or a spouse or domestic partner who
lives with you, or any family member:

	•	 	children, their children or other descendents of theirs;

	•	 	parents, grandparents or other ancestors of theirs; or

	•	 	siblings, their children or other descendents of theirs;

who do not live with you, including spouses or domestic partners of all of the
above. Parents, grandparents and other ancestors include adoptive parents, stepparents and
stepgrandparents.

Reputational injury. If we are defending you or a family member in a suit seeking
covered damages, we will pay reasonable and necessary fees or expenses that you or a family
member incur for services provided by a reputation management firm to minimize potential injury
to the reputation of you or a family member solely as a result of personal injury or property
damage, caused by an occurrence if:

	•	 	the reputational injury is reported to us as soon as reasonably possible but not later
than 30 days after the personal injury or property damage occurrence; and

	•	 	you obtain approval of the reputation management firm from us before incurring any
fees or expenses, unless stated otherwise or an exclusion applies. There is no
deductible for this coverage.

A Reputation management firm means a professional public relations consulting firm, a
professional security consulting firm or a professional media management consulting firm.

			
	 	 	 
	Form 10-02-0691 (Rev. 8-07)
	 	Page 7 of 15

 

 

			
	 	 	 
	
	 	GROUP PERSONAL EXCESS LIABILITY POLICY

Extra Coverages

(continued)

The maximum amount of coverage for Reputational injury available for any one
occurrence is $25,000 or the amount shown in the Coverage Summary. We will not pay
more than this amount in any one occurrence for covered damages regardless of how many
claims or people are involved in the occurrence.

The maximum annual amount of coverage for Reputational injury shown in the Coverage
Summary is the most we will pay for the sum of all covered damages you or a family
member incur during the policy period regardless of the number of claims, people, or
occurrences.

This coverage does not apply to loss caused by a wrongful employment act covered by
Employment Practices Liability Insurance.

Exclusions

These exclusions apply to your Group Personal Excess Liability Coverage, unless stated
otherwise.

Aircraft We do not cover any damages arising out of the ownership, maintenance, use,
loading, unloading, or towing of any aircraft, except aircraft chartered with crew by
you. We do not cover any property damages to aircraft rented to, owned by, or in the
care, custody or control of a covered person.

Hovercraft We do not cover any damages arising out of the ownership, maintenance, use,
loading, unloading or towing of any hovercraft. We do not cover any property damages
to hovercraft rented to, owned by, or in the care, custody or control of a covered
person.

Motorized land vehicle racing or track usage. We do not cover any damages arising out
of the ownership, maintenance or use of any motorized land vehicle:

	•	 	during any instruction, practice, preparation for, or participation in, any
competitive, prearranged or organized racing, speed contest, rally, gymkhana,
sports event, stunting activity, or timed event of any kind; or

	•	 	on a racetrack, test track or other course of any kind.

Watercraft and aircraft racing or track usage. We do not cover any damages arising out
of the ownership, maintenance or use of any watercraft or aircraft during any
instruction, practice, preparation for, or participation in, any competitive,
prearranged or organized racing, speed contest, rally, sports event, stunting activity
or timed event of any kind. This exclusion does not apply to you or a family member
for sailboat racing even if the sailboat is equipped with an auxiliary motor.

Motorized land vehicle-related jobs. We do not cover any damages arising out of the
ownership, maintenance, or use of a motorized land vehicle by any person who is
employed or otherwise engaged in the business of selling, repairing, servicing,
storing, parking, testing, or delivering motorized land vehicles. This exclusion does
not apply to you, a family member, or your employee or an employee of a family member
for damages arising out of the ownership, maintenance or use of a motorized land
vehicle owned by, rented to, or furnished to you or a family member.

Watercraft-related jobs. We do not cover any damages arising out of the ownership,
maintenance, or use of a watercraft by any person who is engaged by or employed by, or
is operating a marina, boat repair yard, shipyard, yacht club, boat sales agency, boat
service station, or other similar organization. This exclusion does not apply to
damages arising out of the ownership, maintenance, or use of a watercraft by you, a
family member, or your or a family member’s captain or full time paid crew member
maintaining or using this watercraft with permission from you or a family member.

Motorized land vehicle and watercraft loading. We do not cover any person or
organization, other than you or a family member or your or a family member’s
employees, with respect to the loading or unloading of motorized land vehicles or
watercraft.

Workers’ compensation or disability. We do not cover any damages a
covered person is legally:

	•	 	required to provide; or
	 
	•	 	voluntarily provides

under any:

	•	 	workers’ compensation;

	•	 	disability benefits;

	•	 	unemployment compensation; or

	•	 	other similar laws.

			
	 	 	 
	Form 10-02-0691 (Rev.
8-07)
	 	Page 8 of 15

 

 

Exclusions

(continued)

But we do provide coverage in excess over any other insurance for damages you or a
family member is legally required to pay for bodily injury to a domestic employee of a
residence covered under the Required Primary Underlying Insurance which are not
compensable under workers’ compensation, unless another exclusion applies.

Director’s liability. We do not cover any damages for any covered person’s actions or
failure to act as an officer or member of a board of directors of any corporation or
organization. However, we do cover such damages if you are or a family member is an officer
or member of a board of directors of a:

	•	 	homeowner, condominium or cooperative association; or

	•	 	not-for-profit corporation or organization for which he or she
is not compensated;

unless another exclusion applies.

Damage to covered person’s property. We do not cover any person for property damage to
property owned by any covered person.

Damage to property in your care. We do not cover any person for property damage to property
rented to, occupied by, used by, or in the care of any covered person, to the extent that
the covered person is required by contract to provide insurance. But we do cover such
damages for loss caused by fire, smoke, or explosion unless another exclusion applies.

Wrongful
employment act. We do not cover any damages arising out of a wrongful employment
act. A wrongful employment act means any employment discrimination, sexual harassment, or
wrongful termination of any residential staff actually or allegedly committed or attempted
by a covered person while acting in the capacity as an employer, that violates applicable
employment law of any federal, state, or local statute, regulation, ordinance, or common
law of the United States of America, its territories or possessions, or Puerto Rico.

“Employment discrimination” as it relates solely to a wrongful employment act means a
violation of applicable employment discrimination law protecting any residential staff
based on his or her race, color, religion, creed, age, sex, disability, national origin or
other status according to any federal, state, or local statute, regulation, ordinance, or
common law of the United States of America, its territories or possessions, or Puerto Rico.

“Sexual harassment” as it relates solely to a wrongful employment act means unwelcome
sexual advances, requests for sexual favors, or other conduct of a sexual nature that;

	•	 	is made a condition of employment of any residential staff;

	•	 	is used as a basis for employment decisions;

	•	 	interferes with performance of any residential staff’s duties; or

	•	 	creates an intimidating, hostile, or offensive working environment.

“Wrongful termination” as it relates solely to a wrongful employment act means

	•	 	the actual or constructive termination of employment of any residential staff by you or a
family member in violation of applicable employment law; or

	•	 	breach of duty and care when you or a family member terminates an employment relationship with
any residential staff.

“Residential staff” as it relates solely to a wrongful employment act means your or a family
member’s employee who is:

	•	 	employed by you or a family member, or through a firm under an agreement with you or
a family member, to perform duties related only to a covered person’s domestic,
personal, or business pursuits covered under this part of your policy;

	•	 	compensated for labor or services directed by you or a family member; and

	•	 	employed regularly to work 15 or more hours per week.

Residential staff includes a temporary worker. Residential staff does not include an
independent contractor or any covered person.

“Temporary worker” as it relates solely to a wrongful employment act means your or a family
member’s employee who is:

	•	 	employed by you or a family member, or through a firm under an agreement with you or
a family member, to perform duties related only to a covered person’s domestic,
personal, or business pursuits covered under this part of your policy;

	•	 	compensated for labor or services directed by you or a family member; and

	•	 	employed to work 15 or more hours per week to substitute for any residential staff on
leave or to meet seasonal or short-term workload demands for 30 consecutive days or
longer during a 6 month period

			
	 	 	 
	Form 10-02-0691 (Rev. 8-07.)
	 	Page 9 of 15

 

 

			
	
	 	GROUP PERSONAL EXCESS LIABILITY POLICY

Exclusions

(continued)

Temporary worker does not include an independent contractor or any covered person.

Discrimination. We do not cover any damages arising out of discrimination due to age,
race, color, sex, creed, national origin, or any other discrimination.

Intentional acts. We do not cover any damages arising out of a willful,
malicious, fraudulent or dishonest act or any act intended by any covered person to
cause personal injury or property damage, even if the injury or damage is of a
different degree or type than actually intended or expected. But we do cover such
damages if the act was intended to protect people or property unless another
exclusion applies. An intentional act is one whose consequences could have been
foreseen by a reasonable person.

Molestation, misconduct or abuse. We do not cover any damages arising out of any actual, alleged or threatened:

	•	 	sexual molestation;
	 
	•	 	sexual misconduct or harassment; or
	 
	•	 	abuse.

Nonpermissive use. We do not cover any person who uses a motorized land vehicle or
watercraft without permission from you or a family member.

Business pursuits. We do not cover any damages arising out of a covered person’s
business pursuits, investment or other for-profit activities, for the account of a
covered person or others, or business property except on a follow form basis.

But we do cover damages arising out of volunteer work for an organized charitable,
religious or community group, an incidental business away from home, incidental
business at home, incidental business property, incidental farming, or residence
premises conditional business liability unless another exclusion applies. We also
cover damages arising out of your or a family member’s ownership,
maintenance, or use of a private passenger motor vehicle in business activities other
than selling, repairing, servicing, storing, parking, testing, or delivering
motorized land vehicles.

Unless stated otherwise in your Coverage Summary:

“Incidental business away from home” is a self-employed sales activity, or a
self-employed business activity normally undertaken by person under the age of 18
such as newspaper delivery, babysitting, caddying, and lawn care. Either of these
activities must:

	•	 	not yield gross revenues in excess of $15,000 in any year;
	 
	•	 	have no employees subject to worker’s compensation or other similar disability laws;
	 
	•	 	conform to local, state, and federal laws.

			
	 	 	 
	Form 10-02-0691 (Rev. 8-07)
	 	Page 10 of 15

 

 

Exclusions

(continued)

“Incidental business at home” is a business activity, other than farming, conducted on your
residence premises which must:

	•	 	not yield gross revenues in excess of $15,000, in any year, except for the business
activity of managing one’s own personal investments;
	 
	•	 	have no employees subject to worker’s compensation or other similar disability laws;
	 
	•	 	conform to local, state, and federal laws.

“Incidental business property” is limited to the rental or holding for rental, to be used as a
residence, of a condominium or cooperative unit owned by you or a family member, an apartment
unit rented to you or a family member, a one or two family dwelling owned by you or a family
member, or a three or four family dwelling owned and occupied by you or a family member. We
provide this coverage only for premises covered under the Required Primary Underlying Insurance
unless the rental or holding for rental is for:

	•	 	a residence of yours or a family member’s that is occasionally rented and that is used exclusively as a residence; or
	 
	•	 	part of a residence of yours or a family member’s by one or two roomers or boarders; or
	 
	•	 	part of a residence of yours or a family member’s as an office, school, studio, or private garage.

“Incidental farming” is a farming activity which meets all of the following requirements:

	•	 	is incidental to your or a family member’s use of the premises as a residence;
	 
	•	 	does not involve employment of others for more than 1,500 hours of farm work during the policy period;
	 
	•	 	does not produce more than $25,000 in gross annual revenue from agricultural operations;
	 
	•	 	and with respect to the raising or care of animals:

	 	•	 	does not produce more than $50,000 in gross annual revenues;
	 
	 	•	 	does not involve more than 25 sales transactions during the
policy period;
	 
	 	•	 	does not involve the sale of more than 50
animals during the policy period.

“Residence premises conditional business liability” is limited to business or professional
activities when legally conducted by you or a family member at your residence. We provide
coverage only for personal injury or property damage arising out of the physical condition of
that residence if:

	•	 	you or a family member do not have any employees involved in your business or
professional activities who are subject to workers’ compensation or other similar
disability laws; or, if you or a family member are a doctor or dentist, you do not have
more than two employees subject to such laws;
	 
	•	 	you or a family member do not earn annual gross revenues in excess of $5,000, if you or a
family member are a home day care provider.

We do not cover damages or consequences resulting from business or professional care or services
performed or not performed.

The following additional exclusion applies only to “incidental farming” as described under the
exclusion, Business pursuits.

Contamination. We do not cover any actual or alleged damages arising out of the
discharge, dispersal, seepage, migration or release or escape of pollutants. Nor do we cover any
cost or expense arising out of any request, demand or order to:

	•	 	extract pollutants from land or water;
	 
	•	 	remove, restore or replace polluted or contaminated land or water; or
	 
	•	 	test for, monitor, clean up, remove, contain, treat, detoxify or neutralize pollutants, or
in any way respond to or assess the effects of pollutants.

However, this exclusion does not apply if the discharge, dispersal, seepage, migration, release
or escape is sudden and accidental. A “pollutant” is any solid, liquid, gaseous or thermal
irritant or contaminant, including smoke (except smoke from a hostile fire), vapor, soot, fumes,
acids, alkalis, chemicals and waste. A “contaminant” is an impurity resulting from the mixture of
or contact of a substance with a foreign substance. “Waste” includes materials to be disposed of,
recycled, reconditioned or reclaimed.

			
	 	 	 
	Form 10-02-0691 (Rev. 8-07)
	 	Page 11 of 15

 

 

			
	
	 	GROUP PERSONAL EXCESS LIABILITY POLICY

Exclusions

(continued)

Financial
guarantees. We do not cover any damages for any covered person’s financial
guarantee of the financial performance of any covered person, other individual or organization.

Professional services. We do not cover any damages for any covered person’s performing or
failure to perform professional services, or for professional services for which any covered
person is legally responsible or licensed.

Acts of war. We do not cover any damages caused directly or indirectly by war, undeclared war,
civil war, insurrection, rebellion, revolution, warlike acts by military forces or personnel,
the destruction or seizure of property for a military purpose, or the consequences of any of
these actions.

Contractual liability. We do not cover any assessments charged against a covered
person as a member of a homeowners, condominium or cooperative association. We also
do not cover any damages arising from contracts or agreements made in connection
with any covered person’s business. Nor do we cover any liability for unwritten
contracts, or contracts in which the liability of others is assumed after a covered
loss.

Covered person’s or dependent’s personal injury. We do not cover any damages for
personal injury for any covered person or their dependents where the ultimate
beneficiary is the offending party or defendant. We also do not cover any damages
for personal injury for which you can be held legally liable, in any way, to a
family member, your spouse or domestic partner or for which a family member, your
spouse or domestic partner can be held legally liable, in any way, to
you.

However, we do cover damages for bodily injury arising out of the use of a
motorized land vehicle for which you can be held legally liable to a family member,
your spouse or domestic partner or for which a family member, your spouse or
domestic partner can be held legally liable to you to the extent that coverage is
provided under this policy. This coverage applies only to the extent such damages
are covered by primary underlying insurance and exceed the limits of insurance
required for that motorized land vehicle under the Required Primary Underlying
Insurance provisions of this policy.

Liability for dependent care. We do not cover any damages for personal injury for which a
covered person’s only legal liability is by virtue of a contract or other responsibility for a
dependent’s care.

Illness. We do not cover personal injury or property damage resulting from any
illness, sickness or disease transmitted intentionally or unintentionally by a
covered person to anyone, or any consequence resulting from that illness, sickness
or disease. We also do not cover any damages for personal injury resulting from the
fear of contracting any illness, sickness or disease, or any consequence resulting
from the fear of contracting any illness, sickness or disease.

Fungi and mold. We do not cover any actual or alleged damages or medical expenses
arising out of mold, the fear of mold, or any consequences resulting from mold or
the fear of mold. “Mold” means fungi, mold, mold spores, mycotoxins, and the scents
and other byproducts of any of these.

Nuclear or radiation hazard. We do not cover any damages caused directly or indirectly by
nuclear reaction, radiation, or radioactive contamination, regardless of how it was caused.

POLICY TERMS

This part of your Group Personal Excess Liability Policy explains the conditions that apply
to your policy.

General Conditions

These conditions apply to your policy in general, and to each coverage provided in the
policy.

Policy period

The effective dates of your policy are shown in the Coverage Summary. Those dates begin
at 12:01 a.m. standard time at the mailing address shown.

All coverages on this policy apply only to occurrences that take place while this policy is in
effect.

Transfer of rights

If we make a payment under this policy, we will assume any recovery rights a covered
person has in connection with that loss, to the extent we have paid for the loss.

			
	 	 	 
	Form 10-02-0691 (Rev. 8-07)
	 	Page 12 of 15

 

 

General Conditions

(continued)

All of your rights of recovery will become our rights to the extent of any payment we
make under this policy. A covered person will do everything necessary to secure such rights;
and do nothing after a loss to prejudice such rights. However, you may waive any rights of
recovery from another person or organization for a covered loss in writing before the loss
occurs.

Concealment or fraud

We do not provide coverage if you or any covered person has intentionally concealed or
misrepresented any material fact relating to this policy before or after a loss.

Application of coverage

Coverage applies separately to each covered person. However, this provision does not
increase the amount of coverage for any one occurrence.

Assignment

You cannot transfer your interest in this policy to anyone else unless we
agree in writing to the transfer.

Policy changes

This policy can be changed only by a written amendment we issue.

Bankruptcy or insolvency

We will meet all our obligations under this policy regardless of whether you, your
estate, or anyone else or their estate becomes bankrupt or insolvent.

In case of death

In the event of your death, coverage will be provided until the end of the policy period
or policy anniversary date, whichever occurs first, for any surviving member of your household
who is a covered person at the time of death. We will also cover your legal representative or
any person having proper temporary custody of your property.

Liberalization

We may extend or broaden the coverage provided by this policy. If we do this during the
policy period or within 60 days before it begins, without increasing the premium, then the
extended or broadened coverage will apply to occurrences after the effective date of the
extended or broadened coverage.

Conforming to state law

If any provision of this policy conflicts with any applicable laws of the state you live
in, this policy is amended to conform to those laws.

Conforming to trade sanction laws

This policy does not apply to the extent that trade or economic sanctions or other laws
or regulations prohibit us from providing insurance.

Liability Conditions

These conditions apply to all liability coverages in this policy.

Other Insurance

This insurance is excess over any other insurance except for those policies that:

	•	 	are written specifically to cover excess over the amount of coverage that applies in this policy;
and
	 
	•	 	schedule this policy as underlying insurance.

Your duties after a loss

In case of an accident or occurrence, the covered person shall perform the
following duties that apply:

Notification. You must notify us or your agent or broker as soon as possible.

Assistance. You must provide us with all available information. This includes any suit papers
or other documents which help us in the event that we defend you.

Cooperation. You must cooperate with us fully in any legal defense. This may include any
association by us with the covered person in defense of a claim reasonably likely to involve
us.

			
	 	 	 
	Form 10-02-0691 (Rev. 8-07)
	 	Page 13 of 15

 

 

	 	 	 

	

	 	GROUP PERSONAL EXCESS LIABILITY POLICY

Liability Conditions
(continued)

Examination. A person making a claim under this policy must submit as often as we
reasonably require:

	•	 	to physical exams by physicians we select, which we will pay for; and
	 
	•	 	to examination under oath and subscribe the same; and

authorize us to obtain:

	•	 	medical reports; and
	 
	•	 	other pertinent records.

Appeals

If a covered person, or any primary insurer, does not appeal a judgment for
covered damages, we may choose to do so. We will then become responsible for all expenses,
taxable costs, and interest arising out of the appeal. However, the amount of coverage for
damages will not be increased.

Special Conditions

In the event of conflict with any other conditions of your policy, these conditions
supersede.

Legal action against us

You agree not to bring action against us unless you have first complied with all conditions
of this policy.

You also agree not to bring any action against us until the amount of damages you are legally
obligated to pay has been finally determined after an actual trial or appeal, if any, or by a
written agreement between you, us and the claimant. No person or organization has any right
under this policy to bring us into any action to determine the liability of a covered person.

Notice of cancellation and coverage termination conditions

The Sponsoring Organization may cancel this policy by returning it to us or notifying
us in writing at any time subject to the following:

	•	 	the Sponsoring Organization must notify us in advance of the requested cancellation date;
and
	 
	•	 	the Sponsoring Organization must provide proof of notification to each member of the
Defined Group covered under this policy.

We may cancel this policy or any part of it subject to the following conditions. Our right to
cancel applies to each coverage or limit in this policy. In the event we cancel this policy,
we are under no obligation to provide you with an opportunity to purchase equivalent
coverage.

	•	 	Within 60 days. When this policy or any part of it has been in effect for less than
60 days, we may cancel with 30 days notice for any reason.
	 
	•	 	Non-payment of premium. We may cancel this policy or any part of it with 10 days
notice if the Sponsoring Organization or you fail to pay the premium by the due date,
regardless of whether the premium is payable to us, to our agent, or under any financial
credit.
	 
	•	 	Misrepresentation. We may cancel this policy or any part of it with 30 days notice if
the coverage was obtained through misrepresentation, fraudulent statements, or omissions
or concealment of a fact that is relevant to the acceptance of the risk or to the hazard
we assumed.
	 
	•	 	Increase in hazard. We may cancel this policy or any part of it with 30 days notice
if there has been a substantial change in the risk which increases the chance of loss
after insurance coverage has been issued or renewed, including but not limited to an
increase in exposure due to rules, legislation, or court decision.
	 
	•	 	Procedure. To cancel this policy or any part of it, we must notify you in writing. This notice
will be mailed to the Sponsoring Organization at the mailing address shown in the Coverage Summary
and we will obtain a certificate of mailing, This notice will include the date the cancellation is
to take effect.

			
	 	 	 
	Form 10-02-0691 (Rev. 8-07)
	 	Page 14 of 15

 

 

Special Conditions
(continued)

Termination. Should an individual for any reason no longer qualify as a member of
the Defined Group, coverage will cease sixty (60) days from the date that individual no
longer qualifies as a member of the Defined Group, or the policy expiration or
cancellation date, whichever comes first.

Refund. In the event of cancellation by the Sponsoring Organization or us, we will refund
any unearned premium on the effective date of cancellation, or as soon as possible
afterwards to the Sponsoring Organization. The unearned premium will be computed short
rate for the unexpired term of the policy.

			
	 	 	 
	Form 10-02-0691 (Rev. 8-07)
	 	Page 15 of 15

 

 

			
	
	 	GROUP PERSONAL EXCESS LIABILITY POLICY

STATE AMENDATORY ENDORSEMENT — CA

	 	 	 	 	 

	 

	 	Endorsement	 	 
	 
	 	 	 	 
	 

	 	Policy Period
	 	NOVEMBER 01, 2010 To NOVEMBER 01, 2011
	 
	 	 	 	 
	 

	 	Effective Date
	 	NOVEMBER 01, 2010
	 
	 	 	 	 
	 

	 	Policy Number
	 	(11) 7993-14-03 PLS
	 
	 	 	 	 
	 

	 	Insured
	 	VICE PRESIDENTS, NON OFFICERS & RETIREES OF NORTHROP GRUMMAN CORPORATION
	 
	 	 	 	 
	 

	 	Name of Company
	 	FEDERAL INSURANCE COMPANY
	 
	 	 	 	 
	 

	 	Date Issued
	 	OCTOBER 27, 2010

The Special Condition is replaced with the following:

Notice of cancellation and coverage termination conditions

	•	 	Within 60 days. When this policy or any part of it has been in effect for less than 60
days, we may cancel with 10 days notice for any reason.

The following Special Condition is added:

Other cancellation reasons. We may cancel this policy for any reason allowed by law.

All Other Terms And Conditions Remain Unchanged.

	 	 	 

	Authorized Representative

	 	

					
	 	 	 	 	 
	 
	 	California Amendatory
	 	last page
	 	 	 	 	 
	Form 10-02-1849 (Ed.8-07)
	 	Endorsement
	 	 Page 1

 

 

			
	
	 	GROUP EXCESS LIABILITY POLICY

	 	 	 	 	 

	 

	 	ENDORSEMENT	 	 
	 
	 	 	 	 
	 

	 	Policy Period
	 	NOVEMBER 01, 2010 to NOVEMBER 01, 2011
	 
	 	 	 	 
	 

	 	Effective Date
	 	NOVEMBER 01, 2010
	 
	 	 	 	 
	 

	 	Policy Number
	 	( 11 ) 7993-14-03 PLS
	 
	 	 	 	 
	

	 	Insured
	 	VICE PRESIDENTS, NON OFFICERS & RETIREES OF NORTHROP GRUMMAN CORPORATION
	 
	 	 	 	 
	 

	 	Name of Company
	 	FEDERAL INSURANCE COMPANY
	 
	 	 	 	 
	 

	 	Date Issued
	 	OCTOBER 27, 2010

ANNUAL PREMIUM ADJUSTMENT CLAUSE

It is agreed that this policy is written with a deposit premium to be adjusted on either
each policy anniversary or at policy expiration. The premium will be adjusted on the basis of
the difference between the total number of participants at inception and the actual number of
participants at each policy anniversary. This difference is to be multiplied by fifty percent
(50%) of the annual rate per participant, resulting in either an additional or return premium.

ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED.

			
	 	 	 
	Authorized Representative
	 	

			
	 	 	 
	 
	 	Page 1

 

 

			
	
	 	GROUP EXCESS LIABILITY POLICY

	 	 	 	 	 

	 

	 	ENDORSEMENT	 	 
	 
	 	 	 	 
	 

	 	Policy Period
	 	NOVEMBER 01, 2010 to NOVEMBER 01, 2011
	 
	 	 	 	 
	 

	 	Effective Date
	 	NOVEMBER 01, 2010
	 
	 	 	 	 
	 

	 	Policy Number
	 	(11) 7993-14-03 PLS
	 
	 	 	 	 
	 

	 	Insured
	 	VICE PRESIDENTS, NON OFFICERS & RETIREES OF NORTHROP GRUMMAN CORPORATION
	 
	 	 	 	 
	 

	 	Name of Company
	 	FEDERAL INSURANCE COMPANY
	 
	 	 	 	 
	 

	 	Date Issued
	 	OCTOBER 27, 2010

Vice Presidents, Non Officers and Retirees of

Northrop Grumman Corporation

$10,000,000 LIMIT OF LIABILITY

$2,000,000 UNINSURED/ UNDERINSURED MOTORIST PROTECTION

Bush,Wesley G

$5,000,000 LIMIT OF LIABILITY

$2,000,000 UNINSURED/ UNDERINSURED MOTORIST PROTECTION

Abbate, Samuel A

Allen, Daniel D

Alsgood, Samuel

Amis, Kevin B

Anderson, David T

Antkowiak, Patrick M

Apt, David R

Archer, Dale S

Arczynski, Daniel L

Armitage, James L

Ashworth, Margaret Sidney

Babb, Steven C

Bartschi, Rolf

Beavers, Jessie K

Belanger, David J

Belote III, Brandon R

Bergjans, Steven B

Bitar, Imad

Bittner, Kevin M

Boak, Richard J

Borzcik, Paul S

Boykin, Jennifer R

Brammer, Robert F

Brickner, Lynne M 0

Brinkman, Charles J

Brooks, John W

Page 1

 

 

Bryant, Stephen M

Buckley Jr, John J

Burch, Mary K

Burke, Robert V

Burton, Dale E

Bush, Edward J

Byloff, James R

Cameron, Dennis S

Campbell, Robert W

Carlton, Roy D

Carroll, Mark S

Carty, William E

Catsavas, Debora L

Cawley, Martin L

Chandhok, Rajender K

Chang, Daniel W

Chanik Jr, Evan M

Chappel, Brian E

Cheston, Sheila

Chino, John J

Clay, John L

Connolly, James P

Conroy, Thomas W

Cool, Christopher B

Costello, Joseph 0

Cote, Susan L

Cuccias, Brian J

Culmo, James

Curiel, Cynthia W

Dacunha, Jose N

Daegele, John F

Davis, Michael L

Diakun, Peter C

DiCarlo, David M

Dickseski, Jerri F

Dohse, John F

Doshi, Nimish M

Dubeau, Robert W

Dufresne, Gerard A

Edelman, Larry W

Edenzon, Irwin F

EnewoId, Steven L

Ensor, Joseph J

Ermatinger, William R

Ervin, Gary W

Evers Manly, Sandra J

Eyler, David

Fagan, Jon H

Fallon Jr, Thomas F

Farrell, Timothy M

Fecteau, Kenneth P

Flach, Gloria A

Flanagan, Karin A

Flores, Frank

Foley III, John B

Fontaine II, Douglass L

Fraser, Darryl M

Fraser, Eugene J

Frei, Timothy J

Fujii, Roger U

Furukawa, Bradley D

Gagen, Mark

Gallimore, William D

Page 2

 

			
	
	 	 

Gerding, Robert B

Glennan III, Thomas K

Godwin III, James B

Grant, Jeffrey D

Gray, Katherine A

Greaney, Joseph E

Gregory, Paul 0

Gross, Michael D

Guerra, George

Gunter Jr, Robert L

Halibozek, Edward P

Hannigan, Timothy J

Hannon, William B

Hardesty, Michael A

Harper, Diane

Harvey, David S

Hashem, Claude J

Haver, Richard L

Haynes, George F

Haynesworth, Linnie R

Heintz, Kenneth N

Hernandez, Christopher M

Hinkey, Michael E

Hinson, Robert C

Hixson, Stephen J

Hogan, Stephen D

Holder, Samuel R

Hossepian, Gorik

Hughes, Edmond E

Hughes, James F

Hunley, Danny W

Hyland, Cynthia L

Iversen, Elizabeth D

Jack, Gary M

Jadik Jr, John

Janey, Cheryl L

Jarvis, Kevin L

Jelen, Robert A

Johnson, Carl

Johnson, John C

Johns ton, Thomas H

Jones, Christopher T

Jones, Timothy C

Kalafos Jr, Paul B

Kale, Jill

Kastner, Christopher D

Kau, Clayton K

Kaufman, Alene G

Kenny, Mark

Kent Jr, Jesse G

King, Amy J

Klein, Robert W

Kohl, Lisa V

Krantz, Keith C

Kuenzel, Catherine G

Kula, Mark S

Lamb-heinz, Catherine C

Landis, William E

Landon, John R

Page 3

 

Lanzillotta, Lawrence J

Lawton, Douglas A

Leaf, Daniel P

Leavitt, Jeffrey A

Lee, Harry Q

Lee, Scott A

Lennon, Michael

Leo, Richard M

Leonard, Mark H

Linsky, Stuart T

Livanos, Alexander C

Lofton, Arthur G

MacKenzie, Thomas L

Madigan, Jeremiah R

Mahler, William K

Marconi, Teri G

Matthews, Richard G

Mazur, David G

McClain, Daniel J

Mccoy, Steven H

McFarland, Judith A

McHugh, Donald E

McKenzie, Gary W

McKnight, Timothy S

McMahon, Patricia M

McNulty, Robert J

McVey, Bernard P

Meltsner, James R

Merchent, Robert L

Meyer, Paul K

Mills, Linda A

Mitchell, Kevin L

Moore, Corey S

Morra, Brian J

Movius, Stephen C

Moynes, John F

Mulherin, Matthew J

Myers, James M

Nagy, David A

Nastase, David W

Nelson, Margaret L

Newby, Patricia A

Newcotne, Richard A

Niland, Barbara A

Norton, Douglas J

Norwood, Todd A

Olesak, John F

Ostroff, Anne Y

Palmer, James F

Palombo, Jeffrey Q

Pami1jans, Janis G

Pattishall, Robert A

Perkins, Glenn E

Perry, David T

Petters, Clement M

Phillips-Soloway, Constance A

Pittman, Carolyn K

Pitts, James F

Porter, Scott L

Quinn, James J

Rabinowitz, Mark A

Rand, Donna K

Reineke, Diane 0

Page 4

 

Reith, David F

Rhine, Barry L

Ricker, Frederick L

Rideout, Jan G

Romesser, Thomas E

Rosener, David S.

Royer, Robert H

Ryan, David L

Salisbury, Gary L

Scarpella, Michelle A

Schaefer Jr, William J

Scharfen, Jonathan R

Schenk, Richard S

Schmaley, Richard F

Schmidt, Gregory A

Sculley, Kevin T

Shawcross, Michael G

Shedlick, Edward P

Shelman, Thomas W

Shiba, Jay A

Siegel, Neil G

Simmerman Jr, George M

Smith, Carl

Smith, Edgar A

Smith, Ronald

Song, Ike J

Spaulding, Rick S

Spehar, Anthony W

Springman, Michael

Stabler II, David S

Stafford, David F

Stewart, Gordon R

Stewart, Rebecca A

Stitzel Sr, Joel D

Stumpf, John

Sturais, Edward

Sullivan, Paul F

Sullivan, Stephen M

Swallow, Edward M

Swift, Malcolm S

Szemborski, Stanley R

Tapp Jr, James

Taylor, Hugh E

Taylor, Joe G

Tomlinson, Thomas W

Toner, Stephen J

Toth, Michele

Tucker, Mark A

Twyman, Michael R

Ussery, Louise

Vandervoet, David B

Vardoulakis, George

Vice, Thomas E

Volk, Charles H

Waldman, Mitchell B

Wands, Charles B

Warden, Kathy Jane

Waters, Robert A

Watson, Gabe A

			
	 	 	 
	 
	 	Page 5

 

 

	 	 	 

	

	 	CHUBB GROUP OF INSURANCE COMPANIES

15 Mountain View Road

Warren, NJ 07059

OCTOBER 27, 2010

VICE PRESIDENTS, NON OFFICERS & RETIREES

1840 CENTURY PARK EAST, 152/CC

LOS ANGELES, CALIFORNIA

90067

Re: Financial Strength

Dear VICE PRESIDENTS, NON OFFICERS & RETIREES

Chubb continues to deliver strong financial performance. Our financial strength, as reflected in
our published reports and our ratings, should give you peace of mind that Chubb will be there for you
when you need us most.

	•	 	Chubb’s financial results during 2009 stand out in the industry.
	 
	•	 	Chubb’s balance sheet is backed with investments that we believe emphasize quality,
safety, and liquidity, with total invested assets of $42.0 billion as of September 30, 2009.
	 
	•	 	With 127 years in the business, Chubb is here for the long term, which is why we
vigorously guard our financial strength and take what we believe is a prudent approach to
assuming risk — on both the asset and liability sides of our balance sheet.
	 
	•	 	Chubb is one of the most highly rated property and casualty companies in the industry,
which is a reflection of our overall quality, strong financial condition, and strong
capital position.

	 	•	 	Chubb’s financial strength rating is “A++” from A.M. Best Company, “AA” from
Fitch, “Aa2” from Moody’s, and “AA” from Standard & Poor’s — the leading
independent evaluators of the insurance industry.
	 
	 	•	 	Chubb’s senior unsecured corporate debt rating from Standard & Poor’s was
upgraded from “A” to “A+” on December 15, 2008. Standard & Poor’s also reaffirmed all
of Chubb’s ratings with a “stable” outlook.
	 
	 	•	 	A.M. Best, Fitch, and Moody’s recently affirmed all of Chubb’s ratings with a
“stable” outlook. (For reference, A.M. Best reaffirmed us on 12/23/08, Moody’s on
2/4/09 and Fitch on 2/13/09.)
	 
	 	•	 	For more than 50 years, Chubb has remained part of an elite group of insurers
that have maintained A.M. Best’s highest ratings.

	•	 	Chubb was named to Standard & Poor’s list of S&P 500 Dividend Aristocrats, one of
52 companies in the S&P 500 index that have increased dividends every year for at
least 25 consecutive years.
	 
	•	 	Chubb’s investment portfolio has held up extremely well. Chubb takes what we believe is a
conservative approach to selecting and managing our assets. Furthermore, Chubb does not
have any direct exposure to the subprime mortgage-backed securities market, and we stopped
doing new credit derivative business in 2003 and put existing business in runoff.

			
	 	 	 
	December 2009
	 	(over)

 

 

Rarely has Chubb’s business philosophy — to underwrite conservatively and invest judiciously
— been more important than it is today. By adhering to this philosophy, we now have the
capacity and flexibility to respond to opportunities, especially when you engage us in fully
understanding your business risks.

We want you to know that Chubb is well-positioned to continue serving your needs with our
underwriting expertise; broad underwriting appetite across all property, casualty, and specialty
lines; and claim services. If you have any questions, feel free to call your agent or broker or
your local Chubb underwriter. As always, we appreciate the trust you place in us as your
insurance partner.

			
	 	 	 
	December 2009
	 	 

 

 

			
	
	 	IMPORTANT NOTICE TO POLICYHOLDERS

This Important Notice is not your policy. Please read your policy carefully to determine
your rights, duties, and what is and what is not covered. Only the provisions of your policy
determine the scope of your insurance protection.

THIS IMPORTANT NOTICE PROVIDES INFORMATION CONCERNING POSSIBLE IMPACT ON YOUR INSURANCE
COVERAGE DUE TO COMPLIANCE WITH APPLICABLE TRADE SANCTION LAWS.

PLEASE READ THIS NOTICE CAREFULLY.

Various trade or economic sanctions and other laws or regulations prohibit us from
providing insurance in certain circumstances. For example, the United States Treasury
Department’s Office of Foreign Asset Control (OFAC) administers and enforces economic and trade
sanctions and places restrictions on transactions with foreign agents, front organizations,
terrorists, terrorists organizations, and narcotic traffickers. OFAC acts pursuant to Executive
Orders of the President of the United States and specific legislation, to impose controls on
transactions and freeze foreign assets under United States jurisdiction. (To learn more about
OFAC, please refer to the United States Treasury’s web site at
http://www.treas.gov/ofac.)

To the extent that you or any other insured, or any person or entity claiming the benefits of
this insurance has violated any applicable sanction laws, this insurance will not apply.

			
	 	 	 
	Form 99-10-0796 (Ed. 9-04)          Important Notice
	 	last page

Page 1

 

 

POLICYHOLDER NOTICE

All of the members of the Chubb Group of Insurance companies doing
business in the United States (hereinafter “Chubb”) distribute their
products through licensed insurance brokers and agents (“producers”).
Detailed information regarding the types of compensation paid by Chubb
to producers on US insurance transactions is available under the
Producer Compensation link located at the bottom of the page at
www.chubb.com, or by calling 1-866-588-9478. Additional information may
be available from your producer.

Thank you for choosing Chubb.

			
	 	 	 
	Form 99-10-0872 (Ed. 6-07)          Policyholder Notice
	 	last page

Page 1

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