Document:

exv4w2

Exhibit 4.2

BIOMED REALTY, L.P.,

ISSUER,

BIOMED REALTY TRUST, INC.,

GUARANTOR,

AND

U.S. BANK NATIONAL ASSOCIATION, AS

TRUSTEE

 

SUPPLEMENTAL INDENTURE NO. 1

DATED AS OF MARCH 30, 2011

 

$400,000,000

3.85% SENIOR NOTES DUE 2016

 

 

     SUPPLEMENTAL INDENTURE NO. 1, dated as of March 30, 2011 (this “First Supplemental
Indenture”), among BioMed Realty, L.P., a Maryland limited partnership (the “Company”),
BioMed Realty Trust, Inc., a Maryland corporation (the “Guarantor”), and U.S. Bank National
Association, as trustee (the “Trustee”).

R E C I T A L S

     WHEREAS, the Company and the Trustee have heretofore entered into an Indenture dated as of
March 30, 2011 (the “Base Indenture”), providing for the issuance from time to time of debt
securities of the Company in one or more Series;

     WHEREAS, Section 2.2 of the Base Indenture permits the Company and the Trustee to enter into a
supplemental indenture to the Base Indenture to establish the form, terms and conditions of
Securities of any Series as permitted by the Base Indenture;

     WHEREAS, each of the Company and the Guarantor desires to execute this First Supplemental
Indenture to establish the form and to provide for the issuance of a Series of the Company’s senior
notes designated as its 3.85% Senior Notes due 2016 (the “Notes”) in an initial aggregate
principal amount of $400,000,000;

     WHEREAS, the Guarantor will guarantee the due and punctual payment of the principal and
interest on the Notes pursuant to Article Five of this First Supplemental Indenture;

     WHEREAS, the Board of Directors of the Guarantor, as the sole general partner of the Company,
has duly adopted resolutions authorizing the Company to execute and deliver this First Supplemental
Indenture and the Board of Directors of the Guarantor has duly adopted resolutions authorizing such
Guarantor to execute and deliver this First Supplemental Indenture; and

     WHEREAS, all other conditions and requirements necessary to make this First
Supplemental Indenture, when duly executed and delivered, a valid and binding agreement in
accordance with its terms and for the purposes herein expressed, have been performed and fulfilled.

     NOW, THEREFORE, THIS INDENTURE WITNESSETH:

     For and in consideration of the premises and other good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, each of the Company and the Guarantor
agrees as follows:

ARTICLE ONE

RELATION TO BASE INDENTURE

     SECTION 1.1. Relation to Base Indenture.

     This First Supplemental Indenture constitutes an integral part of the Base Indenture.
Notwithstanding any other provision of this First Supplemental Indenture, all provisions of this
First Supplemental Indenture are expressly and solely for the benefit of the Holders of the Notes

 

 

and any such provisions shall not be deemed to apply to any other Securities issued under the Base
Indenture and shall not be deemed to amend, modify or supplement the Base Indenture for any purpose
other than with respect to the Notes.

ARTICLE TWO

DEFINITIONS

     SECTION 2.1. Definitions. For all purposes of this First Supplemental Indenture,
except as otherwise expressly provided for or unless the context otherwise requires:

          (a) capitalized terms used but not defined herein shall have the respective meanings
assigned to them in the Base Indenture;

          (b) all references herein to Articles and Sections, unless otherwise specified, refer to the
corresponding Articles and Sections of this First Supplemental Indenture; and

          (c) as used herein the following terms have the following meanings:

     “Acquired Debt” means Debt of a person (1) existing at the time such person becomes a
Subsidiary or (2) assumed in connection with the acquisition of assets from such person, in each
case, other than Debt incurred in connection with, or in contemplation of, such person becoming a
Subsidiary or such acquisition. Acquired Debt shall be deemed to be incurred on the date of the
related acquisition of assets from any person or the date the acquired person becomes a Subsidiary.

     “Additional Notes” means additional Notes (other than the Initial Notes) issued under
the Indenture in accordance with Section 3.4 hereof, as part of the same series as the Initial
Notes.

     “Adjusted Treasury Rate” means, with respect to any Redemption Date, the rate per year
equal to the semi-annual equivalent yield to maturity of the Comparable Treasury Issue, assuming a
price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal
to the Comparable Treasury Price for such Redemption Date.

     “Annual Debt Service Charge” as of any date means the amount of interest expense determined on
a consolidated basis in accordance with GAAP.

     “Applicable Procedures” means, with respect to any transfer or exchange of or for
beneficial interests in any Global Note, the rules and procedures of the Depository, Euroclear and
Clearstream that apply to such transfer or exchange.

     “Authentication Order” means a Company Order to the Trustee to authenticate and
deliver the Notes.

     “Bankruptcy Law” means title 11, U.S. Code or any similar Federal or State law for the
relief of debtors.

     “Benefited Party” has the meaning set forth in Section 5.1 hereof.

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     “Comparable Treasury Issue” means the United States Treasury security selected by the
Quotation Agent as having a maturity comparable to the remaining term of the Notes to be redeemed
that would be utilized, at the time of selection and in accordance with customary financial
practice, in pricing new issues of corporate debt securities of comparable maturity to the
remaining term of such Notes.

     “Comparable Treasury Price” means, with respect to any Redemption Date, (1) the
average of the Reference Treasury Dealer Quotations for such Redemption Date, after excluding the
highest and lowest of such Reference Treasury Dealer Quotations, or (2) if the Trustee obtains
fewer than four such Reference Treasury Dealer Quotations, the average of all such Quotations.

     “Consolidated Income Available for Debt Service” means, for any period, Earnings from
Operations of the Company and its Subsidiaries plus amounts which have been deducted, and minus
amounts which have been added, for the following (without duplication): (1) Annual Debt Service
Charge of the Company and its Subsidiaries, (2) provision for taxes of the Company and its
Subsidiaries based on income, (3) provisions for gains and losses on properties and depreciation
and amortization, (4) increases in deferred taxes and other non-cash items, (5) depreciation and
amortization with respect to interests in joint venture and partially owned entity investments, (6)
the effect of any charge resulting from a change in accounting principles in determining Earnings
from Operations for such period, and (7) amortization of deferred charges.

     “Debt” means any of the Company’s or any of its Subsidiaries’ indebtedness, whether or
not contingent, in respect of (without duplication) (1) borrowed money evidenced by bonds, notes,
debentures or similar instruments, (2) indebtedness secured by any mortgage, pledge, lien, charge,
encumbrance or any security interest existing on property owned by the Company or any of its
Subsidiaries, but only to the extent of the lesser of (a) the amount of indebtedness so secured and
(b) the fair market value (determined in good faith by the board of directors of such person or, in
the case of the Company or one of its Subsidiaries, by the Board of Directors) of the property
subject to such mortgage, pledge, lien, charge, encumbrance or security interest, (3) the
reimbursement obligations, contingent or otherwise, in connection with any letters of credit
actually issued or amounts representing the balance deferred and unpaid of the purchase price of
any property or services, except any such balance that constitutes an accrued expense or trade
payable, or all conditional sale obligations or obligations under any title retention agreement, or
(4) any lease of property by the Company or any of its Subsidiaries as lessee which is reflected on
the Company’s consolidated balance sheet as a capitalized lease in accordance with GAAP; but only
to the extent, in the case of items of indebtedness under (1) through (3) above, that any such
items (other than letters of credit) would appear as a liability on the Company’s consolidated
balance sheet in accordance with GAAP. The term “Debt” also includes, to the extent not otherwise
included, any obligation of the Company or any of its Subsidiaries to be liable for, or to pay, as
obligor, guarantor or otherwise (other than for purposes of collection in the ordinary course of
business or for the purposes of guaranteeing the payment of all
amounts due and owing pursuant to leases to which the Company or any of its Subsidiaries are a
party and have assigned its or their interest, provided that such assignee of the Company or its
Subsidiary is not in default of any amounts due and owing under such leases), Debt of another
person (other than the Company or any of its Subsidiaries) (it being understood that Debt shall be
deemed to

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be incurred by the Company or any of its Subsidiaries whenever the Company or such Subsidiary
shall create, assume, guarantee or otherwise become liable in respect thereof).

     “Defaulted Interest” has the meaning set forth in Section 3.6 hereof.

     “Definitive Note” means a certificated Note registered in the name of the Holder
thereof and issued in accordance with Section 3.13 hereof, substantially in the form of Exhibit A
hereof except that such Note shall not bear the Global Note legend and shall not have the “Schedule
of Exchanges of Interests in the Global Note” attached thereto.

     “Depository” means, with respect to the Notes, the Depository Trust Company and any
successor thereto.

     “Earnings from Operations” means, for any period, net income or loss of the
Company and its Subsidiaries, excluding (1) provisions for gains and losses on sales of investments
or joint ventures; (2) provisions for gains and losses on disposition of discontinued operations;
(3) extraordinary and non-recurring items; and (4) impairment charges, property valuation losses
and non-cash charges necessary to record interest rate contracts at fair value; plus amounts
received as rent under leases which are accounted for as financing arrangements net of related
interest income, as reflected in the consolidated financial statements of the Company and its
Subsidiaries for such period determined in accordance with GAAP.

     “Event of Default” has the meaning set forth in Section 7.1 hereof.

     “Global Note” means, individually and collectively, each of the Notes in the form of a
Global Security issued to the Depository or its nominee, substantially in the form of Exhibit
A.

     “Guarantee Obligations” has the meaning set forth in Section 5.1 hereof.

     “Indenture” means the Base Indenture, as supplemented by the First Supplemental Indenture, as further
supplemented, amended or restated.

     “Indirect Participant” means a person who holds a beneficial interest in a Global Note
through a Participant.

     “Initial Notes” means the first $400,000,000 aggregate principal amount of Notes
issued under this First Supplemental Indenture on the date hereof.

     “Initial Original Principal Amount” has the meaning set forth in Section 3.4
hereof.

     “Intercompany Debt” means Debt to which the only parties are any of the Company, the
Guarantor and any of their Subsidiaries; provided, however, that with respect to any such Debt of
which the Company or the Guarantor is the borrower, such
Debt is subordinate in right of payment to the Notes.

     “Interest Payment Date” has the meaning set forth in Section 3.5 hereof.

     “Maturity Date” has the meaning set forth in Section 3.5 hereof.

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     “Notes” has the meaning specified in the third whereas clause hereof. The Initial
Notes and the Additional Notes shall be treated as a single class for all purposes under the
Indenture, and unless the context otherwise requires, all references to the Notes shall include the
Initial Notes and any Additional Notes.

     “Participant” means, with respect to the Depository, Euroclear or Clearstream, a
person who has an account with the Depository, Euroclear or Clearstream, respectively.

     “Primary Treasury Dealer” means a primary U.S. Government Securities dealer.

     “Prospectus” means the base prospectus, dated November 15, 2010, included as part of a registration
statement on Form S-3 under Securities Act, filed by the Guarantor with the SEC on September 4,
2009, as amended by Post-Effective Amendment No. 1, filed by the Company and the Guarantor with the
SEC on November 15, 2010 (File Nos. 333-161751 and 333-161751-01), as supplemented by a prospectus
supplement, dated March 23, 2011, filed by the Company and the Guarantor with the SEC pursuant to
Rule 424(b) under the Securities Act.

     “Quotation Agent” means the Reference Treasury Dealer appointed by the Company.

     “Record Date” has the meaning set forth in Section 3.5 hereof.

     “Redemption Date” means, with respect to any Note or portion thereof to be redeemed in
accordance with the provisions of Section 4.1 hereof, the date fixed for such redemption in
accordance with the provisions of Section 4.1 hereof.

	 	 	“Redemption Price” has the meaning specified in Section 4.1 hereof.

     “Reference Treasury Dealer” means (1) a Primary Treasury Dealer selected by Wells
Fargo Securities, LLC, KeyBanc Capital Markets Inc. and Morgan Stanley & Co. Incorporated and their
respective successors; provided, however, that if any of the Reference Treasury Dealers ceases to
be a Primary Treasury Dealer, the Company will substitute therefor another Primary Treasury Dealer;
and (2) any other Primary Treasury Dealers selected by the Company.

     “Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury
Dealer and any Redemption Date, the average, as determined by the Company, of the bid and asked
prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal
amount) quoted in writing to the Trustee by such Reference Treasury Dealer at 5:00 p.m., New York
City time, on the third Business Day preceding such Redemption Date.

     “Securities Act” means the Securities Act of 1933, as amended, and the rules and
regulations promulgated thereunder, as in effect from time to time.

     “Significant Subsidiary” has the meaning set forth in Section 7.1(c) hereof.

     “Total Assets” as of any date means the sum of (1) the Company’s and all of its
Subsidiaries’ Undepreciated Real Estate Assets and (2) all of the Company’s and all of its
Subsidiaries’ other assets determined in accordance with GAAP (but excluding accounts receivable
and acquisition intangibles, including goodwill).

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     “Undepreciated Real Estate Assets” as of any date means the cost (original cost plus
capital improvements) of the Company’s and its Subsidiaries’ real estate assets on such date,
before depreciation and amortization determined on a consolidated basis in accordance with GAAP.

     “Unencumbered Total Asset Value” as of any date means the sum of (1) those
Undepreciated Real Estate Assets not encumbered by any mortgage, lien, charge, pledge or security
interest and (2) all of the Company’s and its Subsidiaries’ other assets on a consolidated basis
determined in accordance with GAAP (but excluding accounts receivable and acquisition intangibles,
including goodwill), in each case which are unencumbered by any mortgage, lien, charge, pledge or
security interest; provided, however, that in determining Unencumbered Total Asset Value for
purposes of this First Supplemental Indenture, all investments by the Guarantor and any of its
Subsidiaries in unconsolidated joint ventures, unconsolidated limited partnerships, unconsolidated
limited liability companies and other unconsolidated entities accounted for financial reporting
purposes using the equity method of accounting in accordance with GAAP shall be excluded from
Unencumbered Total Asset Value.

ARTICLE THREE

THE SERIES OF NOTES

     SECTION 3.1. Title of the Securities.

     There shall be a Series of Securities designated the 3.85% Senior Notes due 2016.

     SECTION 3.2. Price.

     The Initial Notes shall be issued at a public offering price of 99.365% of the principal
amount thereof, other than any offering discounts pursuant to the initial offering and resale of
the Notes.

     SECTION 3.3. Issuance

     The Notes will be issued only in fully registered, book-entry form, in denominations of $2,000
and integral multiples of $1,000 in excess thereof. The registered Holder of a Note will be treated
as its owner for all purposes.

     SECTION 3.4. Limitation on Aggregate Principal Amount.

     The aggregate principal amount of the Notes shall initially be limited to $400,000,000 (the
“Initial Original Principal Amount”). Notwithstanding the foregoing, the Company, without
notice to or the consent of the Holders of the Notes, by Board Resolutions or indentures
supplemental to the Base Indenture from time to time may
increase the principal amount of the Notes by issuing Additional Notes in the future on the
same terms and conditions as the Initial Notes except for any difference in the issue price and
interest accrued prior to the issue date of the Additional Notes, and with the same CUSIP number as
the Initial Notes so long as such Additional Notes are fungible for U.S. income tax purposes with
the Initial Notes. Except as provided in this Section 3.4, any such Board Resolutions or indentures
supplemental to the Base

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Indenture and in Section 2.8 of the Base Indenture, the Company shall not execute and the Trustee
shall not authenticate or deliver Notes in excess of the Initial Original Principal Amount.

     Nothing contained in this Section 3.4 or elsewhere in this First Supplemental Indenture, or in
the Notes, is intended to or shall limit execution by the Company or authentication or delivery by
the Trustee of the Notes under the circumstances contemplated in Sections 2.3, 2.8, 2.11 and 3.6 of
the Base Indenture.

     SECTION 3.5. Interest and Interest Rates; Maturity Date of Notes.

     The Notes will bear interest at a rate of 3.85% per annum from March 30, 2011 or from the
immediately preceding Interest Payment Date to which interest has been paid or duly provided for,
payable semi-annually in arrears on April 15 and October 15 of each year, commencing October 15,
2011 (each, an “Interest Payment Date”), to the person in whose name such Note is
registered at the close of business on April 1 or October 1 (whether or not a Business Day), as the
case may be, immediately preceding such Interest Payment Date (each, a “Record Date”).
Interest will be computed on the basis of a 360-day year composed of twelve 30-day months.

     If any Interest Payment Date, Maturity Date or Redemption Date falls on a day that is not a
Business Day, the required payment shall be made on the next Business Day as if it were made on the
date such payment was due and no interest shall accrue on the amount so payable for the period from
and after such Interest Payment Date, Maturity Date or Redemption Date, as the case may be.

     The Notes will mature on April 15, 2016 (the “Maturity Date”).

     SECTION 3.6. Method of Payment.

     The Company covenants and agrees that it will duly and punctually pay or cause to be paid when
due the principal of (including the Redemption Price upon redemption pursuant to Article Four, if
applicable), and interest on each of the Securities at the places, at the respective times and in
the manner provided herein and in the Securities; provided that the Company may withhold from
payments of interest and upon redemption pursuant to Article Four hereof, if applicable, maturity
or otherwise, any amounts the Company is required to withhold by law. Interest shall be payable at
the office of the Company maintained by the Company for such purposes, which shall initially be an
office or agency of the Trustee. The Company shall pay interest (i) on any Notes in certificated
form by check mailed to the address of the person entitled thereto as it appears in the register;
provided, however, that a Holder of any Notes in certificated form in the aggregate principal
amount of more than $2.0 million may specify by written notice to the Company that it pay interest
by wire transfer of immediately available funds to the account specified by the Holder in such
notice, or (ii) on any Global Note by wire transfer of immediately available funds to the account
of the Depository or its nominee.
Any interest on any Note which is payable, but is not punctually paid or duly provided for, on any
April 15 or October 15 (herein called “Defaulted Interest”) shall forthwith cease to be
payable to the Holder registered as such on the relevant Record Date, and such Defaulted Interest
shall be paid by the Company, at its election in each case, as provided in clause (1) or (2) below:

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     (1) The Company may elect to make payment of any Defaulted Interest to the persons in whose
names the Notes are registered at 5:00 p.m., New York City time, on a special record date for the
payment of such Defaulted Interest, which shall be fixed in the following manner. The Company shall
notify the Trustee in writing of the amount of Defaulted Interest proposed to be paid on each Note
and the date of the proposed payment (which shall be not less than twenty-five (25) calendar days
after the receipt by the Trustee of such notice, unless the Trustee shall consent to an earlier
date), and at the same time the Company shall deposit with the Trustee an amount of monies equal to
the aggregate amount to be paid in respect of such Defaulted Interest or shall make arrangements
satisfactory to the Trustee for such deposit on or prior to the date of the proposed payment, such
monies when deposited to be held in trust for the benefit of the persons entitled to such Defaulted
Interest as in this clause provided. Thereupon the Trustee shall fix a special record date for the
payment of such Defaulted Interest which shall be not more than fifteen (15) calendar days and not
less than ten (10) calendar days prior to the date of the proposed payment, and not less than ten
(10) calendar days after the receipt by the Trustee of the notice of the proposed payment (unless,
the Trustee shall consent to an earlier date). The Trustee shall promptly notify the Company of
such special record date and, in the name and at the expense of the Company, shall cause notice of
the proposed payment of such Defaulted Interest and the special record date therefor to be mailed
(or sent by electronic transmission), first-class postage prepaid, to each Holder at its address as
it appears in the register, not less than ten (10) calendar days prior to such special record date
(unless, the Trustee shall consent to an earlier date). Notice of the proposed payment of such
Defaulted Interest and the special record date therefor having been so mailed, such Defaulted
Interest shall be paid to the persons in whose names the Notes are registered at 5:00 p.m., New
York City time, on such special record date and shall no longer be payable pursuant to the
following clause (2) of this Section 3.6.

     (2) The Company may make payment of any Defaulted Interest in any other lawful manner not
inconsistent with the requirements of any securities exchange or automated quotation system on
which the Notes may be listed or designated for issuance, and upon such notice as may be required
by such exchange or automated quotation system, if, after notice given by the Company to the
Trustee of the proposed payment pursuant to this clause, such manner of payment shall be deemed
practicable by the Trustee.

     SECTION 3.7. Currency.

     Principal and interest on the Notes shall be payable in Dollars.

     SECTION 3.8. No Sinking Fund.

     The provisions of Article XI of the Base Indenture shall not be applicable to the Notes.

     SECTION 3.9. No Conversion or Exchange Rights.

     The Notes will not be convertible into or exchangeable for any capital stock of the Company or
the Guarantor.

     SECTION 3.10. No Personal Liability of Directors, Officers, Employees and Stockholders

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     No director, officer, employee or stockholder (past or present) of the Company or the
Guarantor, as such, will have any liability for any of the Company’s or the Guarantor’s obligations
under the Notes, the Guarantee or the Indenture or for any claim based on, in respect of, or by
reason of, such obligations or their creation. Each Holder of Notes by accepting a Note waives and
releases all such liability. The waiver and release are part of the consideration for issuance of
the Notes.

     SECTION 3.11. [Reserved].

     [Reserved]

     SECTION 3.12. Registered Securities; Global Form.

     The Notes will be issued in the form of one or more fully-registered Global Notes in
book-entry form, which will be deposited with, or on behalf of, the Depository, in New York, New
York. The Notes shall not be issuable in Definitive Notes except as provided in Section 3.13 of
this First Supplemental Indenture. The Notes and the Trustee’s certificate of authentication shall
be substantially in the form attached as Exhibit A hereto. The Company shall execute each
Global Note and each Definitive Note, if any. The Trustee shall, in accordance with Section 2.3 of
the Base Indenture, authenticate and hold each Global Note as custodian for the Depository, and
authenticate each Definitive Note, if any. Each Global Note will represent such of the outstanding
Notes as will be specified therein and each shall provide that it represents the aggregate
principal amount of outstanding Notes from time to time endorsed thereon and that the aggregate
principal amount of outstanding Notes represented thereby may from time to time be reduced or
increased, as appropriate, to reflect exchanges and redemptions. Any endorsement of a Global Note
to reflect the amount of any increase or decrease in the aggregate principal amount of outstanding
Notes represented thereby will be made by the Trustee or a custodian at the direction of the
Trustee. The terms and provisions contained in the form of Note attached as Exhibit A hereto shall
constitute, and are hereby expressly made, a part of the Indenture and, to the extent applicable,
the Company and the Trustee, by their execution and delivery of this First Supplemental Indenture,
expressly agree to such terms and provisions and to be bound thereby.

     SECTION 3.13. Transfer and Exchange.

     (a) Transfer and Exchange of Global Notes. A Global Note may not be transferred except as a
whole by the Depository to a nominee of the Depository, by a nominee of the Depository to the
Depository or to another nominee of the Depository, or by the Depository or any such nominee to a
successor Depository or a nominee of such successor Depository. All Global Notes will be exchanged
by the Company for Definitive Notes if:

          (i) the Company delivers to the Trustee notice from the Depository that it is unwilling or
unable to continue to act as Depository or that it is no longer a clearing
agency registered under the Exchange Act and, in either case, a successor Depository is not
appointed by the Company within ninety (90) days after the date of such notice from the
Depository; or

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          (ii) the Company in its sole discretion determines that the Global Notes (in whole but not
in part) should be exchanged for Definitive Notes and delivers a written notice to such effect to
the Trustee.

     Upon the occurrence of either of the preceding events in (i) or (ii) above, Definitive Notes
shall be issued in such names as the Depository shall instruct the Trustee. Global Notes also may
be exchanged or replaced, in whole or in part, as provided in Sections 2.8 and 2.11 of the Base
Indenture. Every Note authenticated and delivered in exchange for, or in lieu of, a Global Note or
any portion thereof, pursuant to this Section 3.13 or Section 2.8 and 2.11 of the Base Indenture,
shall be authenticated and delivered in the form of, and shall be, a Global Note. A Global Note may
not be exchanged for another Note other than as provided in this Section 3.13(a), however,
beneficial interests in a Global Note may be transferred and exchanged as provided in Section
3.13(c) or (d) hereof.

     (b) Legend. Any Global Note issued under this First Supplemental Indenture shall bear a
legend in substantially the following form:

“THIS GLOBAL NOTE IS HELD BY THE DEPOSITORY (AS DEFINED IN THE INDENTURE GOVERNING THIS
NOTE) OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF THE BENEFICIAL OWNERS HEREOF, AND IS NOT
TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT THAT (I) THE TRUSTEE MAY MAKE SUCH
NOTATIONS HEREON AS MAY BE REQUIRED PURSUANT TO SECTION 3.13 OF THE FIRST SUPPLEMENTAL INDENTURE,
(II) THIS GLOBAL NOTE MAY BE EXCHANGED IN WHOLE BUT NOT IN PART PURSUANT TO SECTION 3.13 OF THE
FIRST SUPPLEMENTAL INDENTURE, (III) THIS GLOBAL NOTE MAY BE DELIVERED TO THE TRUSTEE FOR
CANCELLATION PURSUANT TO SECTION 2.12 OF THE BASE INDENTURE AND (IV) THIS GLOBAL NOTE MAY BE
TRANSFERRED TO A SUCCESSOR DEPOSITORY WITH THE PRIOR WRITTEN CONSENT OF THE COMPANY.

UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN DEFINITIVE FORM, THIS NOTE MAY
NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITORY TO A NOMINEE OF THE DEPOSITORY OR BY A
NOMINEE OF THE DEPOSITORY TO THE DEPOSITORY OR ANOTHER NOMINEE OF THE DEPOSITORY OR BY THE
DEPOSITORY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITORY OR A NOMINEE OF SUCH SUCCESSOR
DEPOSITORY. UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY (55 WATER STREET, NEW YORK, NEW YORK) (“DTC”) TO THE COMPANY OR ITS AGENT
FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN
THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF
DTC (AND ANY PAYMENT IS MADE
TO CEDE & CO. OR SUCH OTHER ENTITY AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC),
ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL
INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.”

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     (c) Transfer and Exchange of Beneficial Interests in the Global Notes. The transfer and
exchange of beneficial interests in the Global Notes will be effected through the Depository, in
accordance with the provisions of the Indenture and the Applicable Procedures. Transfers of
beneficial interests in the Global Notes will require compliance with either subparagraph (1) or
(2) below, as applicable, as well as one or more of the other following subparagraphs, as
applicable:

     (1) Transfer of Beneficial Interests in the Same Global Note. Beneficial interests in any
Global Note may be transferred to persons who take delivery thereof in the form of a beneficial
interest in a Global Note. No written orders or instructions shall be required to be delivered to
the Registrar to effect the transfers described in this Section 3.13(c)(1).

     (2) All Other Transfers of Beneficial Interests in Global Notes. In connection with all
transfers of beneficial interests that are not subject to Section 3.13(c)(1) above, the transferor
of such beneficial interest must deliver to the Registrar both:

          (i) a written order from a Participant or an Indirect Participant given to the Depository in
accordance with the Applicable Procedures directing the Depository to credit or cause to be
credited a beneficial interest in another Global Note in an amount equal to the beneficial
interest to be transferred or exchanged; and

          (ii) instructions given in accordance with the Applicable Procedures containing information
regarding the Participant account to be credited with such increase.

     Upon satisfaction of all of the requirements for transfer or exchange of beneficial interests
in Global Notes contained in the Indenture and the Notes or otherwise applicable under the
Securities Act, the Trustee shall adjust the principal amount of the relevant Global Note(s)
pursuant to Section 3.13(i) hereof.

          (d) Transfer and Exchange of Beneficial Interests in Global Notes for Definitive Notes. If
any holder of a beneficial interest in a Global Note proposes to exchange such beneficial interest
for a Definitive Note or to transfer such beneficial interest to a person who takes delivery
thereof in the form of a Definitive Note, then, upon satisfaction of the conditions set forth in
Section 3.13(c)(2) hereof, the Trustee will cause the aggregate principal amount of the applicable
Global Note to be reduced accordingly pursuant to Section 3.13(g) hereof, and the Company will
execute and the Trustee will authenticate and deliver to the person designated in the instructions
a Definitive Note in the appropriate principal amount. Any Definitive Note issued in exchange for
a beneficial interest pursuant to this Section 3.13(d) will be registered in such name or names
and in such authorized denomination or denominations as the holder of such beneficial interest
requests through instructions to the Registrar from or through the Depository and the Participant
or Indirect Participant. The Trustee will deliver such Definitive Notes to the persons in whose
names such Notes are so registered.

          (e) Transfer and Exchange of Definitive Notes for Beneficial Interests in
Global Notes. A Holder of a Definitive Note may exchange such Note for a beneficial interest
in a Global Note or transfer such Definitive Notes to a person who takes delivery thereof in the
form of a beneficial interest in a Global Note at any time. Upon receipt of a request for such an
exchange or transfer, the Trustee will cancel the applicable Definitive Note and increase or cause
to be increased the aggregate principal amount of one of the Global Notes.

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     If any such exchange or transfer from a Definitive Note to a beneficial interest is effected
pursuant to the previous paragraph at a time when a Global Note has not yet been issued, the
Company will issue and, upon receipt of an Authentication Order in accordance with Section 3.13
hereof, the Trustee will authenticate one or more Global Notes in an aggregate principal amount
equal to the principal amount of Definitive Notes so transferred.

          (f) Transfer and Exchange of Definitive Notes for Definitive Notes. Upon request by a Holder
of Definitive Notes and such Holder’s compliance with the provisions of this Section 3.13(f), the
Registrar will register the transfer or exchange of Definitive Notes. Prior to such registration
of transfer or exchange, the requesting Holder will present or surrender to the Registrar the
Definitive Notes duly endorsed or accompanied by a written instruction of transfer in form
satisfactory to the Registrar duly executed by such Holder or by his attorney, duly authorized in
writing. A Holder of Definitive Notes may transfer such Notes to a person who takes delivery
thereof in the form of a Definitive Note. Upon receipt of a request to register such a transfer,
the Registrar shall register the Definitive Notes pursuant to the instructions from the Holder
thereof.

          (g) Cancellation and/or Adjustment of Global Notes. At such time as all beneficial interests
in a particular Global Note have been exchanged for Definitive Notes or a particular Global Note
has been redeemed, repurchased or canceled in whole and not in part, each such Global Note will be
returned to or retained and canceled by the Trustee in accordance with Section 2.12 of the Base
Indenture. At any time prior to such cancellation, if any beneficial interest in a Global Note is
exchanged for or transferred to a person who will take delivery thereof in the form of a
beneficial interest in another Global Note or for Definitive Notes, the principal amount of Notes
represented by such Global Note will be reduced accordingly and an endorsement will be made on
such Global Note by the Trustee or by the Depository at the direction of the Trustee to reflect
such reduction; and if the beneficial interest is being exchanged for or transferred to a person
who will take delivery thereof in the form of a beneficial interest in another Global Note, such
other Global Note will be increased accordingly and an endorsement will be made on such Global
Note by the Trustee or by the Depository at the direction of the Trustee to reflect such increase.

          SECTION 3.14. General Provisions Relating to Transfers and Exchanges

          (a) To permit registrations of transfers and exchanges, the Company will execute and the
Trustee will authenticate Global Notes and Definitive Notes upon receipt of an Authentication
Order in accordance with Section 3.13 hereof or at the Registrar’s request.

          (b) No service charge will be made to a Holder of a beneficial interest in a Global Note or
to a Holder of a Definitive Note for any registration of transfer or exchange, but the Company may
require payment of a sum sufficient to cover any transfer tax or
similar governmental charge payable in connection therewith (other than any such transfer
taxes or similar governmental charge payable upon exchange or transfer pursuant to Sections 2.11
and 9.6 of the Base Indenture).

          (c) The Registrar will not be required to register the transfer of or exchange of any Note
selected for redemption in whole or in part, except the unredeemed portion of any Note being
redeemed in part.

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          (d) All Global Notes and Definitive Notes issued upon any registration of transfer or exchange
of Global Notes or Definitive Notes will be the valid obligations of the Company, evidencing the
same debt, and entitled to the same benefits under the Indenture, as the Global Notes or Definitive
Notes surrendered upon such registration of transfer or exchange.

          (e) Neither the Registrar nor the Company will be required:

          (i) to issue, register the transfer of or to exchange any Note during a period beginning
at the opening of business fifteen (15) days before any selection of Notes for redemption under
Article Four hereof and ending at the close of business on the earliest date on which the
relevant notice of redemption is deemed to have been given to all Holders of Notes to be so
redeemed; or

          (ii) to register the transfer of or to exchange any Note so selected for redemption in
whole or in part, except the unredeemed portion of any Note being redeemed in part; or

          (iii) to register the transfer of or to exchange a Note between a Record Date and the next
succeeding Interest Payment Date.

     (f) Prior to due presentment for the registration of a transfer of any Note, the Trustee, any
Agent and the Company may deem and treat the person in whose name any Note is registered as the
absolute owner of such Note for the purpose of receiving payment of principal of and interest on
such Notes and for all other purposes, and none of the Trustee, any Agent or the Company shall be
affected by notice to the contrary.

          (g) The Trustee will authenticate Global Notes and Definitive Notes in accordance with the
provisions of Section 2.3 of the Base Indenture.

          (h) All certifications, certificates and Opinions of Counsel required to be submitted to the
Registrar pursuant to this Section 3.14 to effect a registration of transfer or exchange may be
submitted by facsimile.

ARTICLE FOUR

REDEMPTION

          The provisions of Article III of the Base Indenture, as amended by the provisions of this
First Supplemental Indenture, shall apply to the Notes.

          SECTION 4.1. Optional Redemption.

          (a) At any time before thirty (30) days prior to the Maturity Date, the
Company shall have the right to redeem the Notes at its option and in its sole discretion, in whole
or from time to time in part. The redemption price (“Redemption Price”) will equal the
greater of (i) 100% of the principal amount of the Notes to be redeemed plus unpaid interest, if
any, accrued thereon to, but excluding, the Redemption Date; provided, however, that if the
Redemption Date falls after a Record Date and on or prior to the corresponding Interest Payment
Date, the Company will pay the full amount of accrued and unpaid interest, if any, on such Interest
Payment Date to the Holder of record at the close of business on the corresponding Record Date
(instead of the Holder surrendering its Notes for redemption) and the Redemption Price shall be
equal to 100%

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of the principal amount of the Notes to be redeemed or (ii) as determined by the Quotation Agent,
the sum of the present values of the remaining scheduled payments of principal and interest thereon
(not including any portion of such payments of interest accrued as of the Redemption Date)
discounted to the Redemption Date on a semi-annual basis (assuming a 360-day year consisting of
twelve 30-day months) at the Adjusted Treasury Rate plus 30 basis points (0.30% or thirty
one-hundredths of one percent), plus accrued and unpaid interest thereon to, but excluding, the
Redemption Date. Notwithstanding the foregoing, if the Notes are redeemed on or after thirty (30)
days prior to the Maturity Date, the Redemption Price will be equal to 100% of the principal amount
of the Notes being redeemed.

               (b) The Company shall not redeem the Notes pursuant to Section 4.1(a) on any date if the
principal amount of the Notes has been accelerated, and such an acceleration has not been rescinded
or cured on or prior to such date (except in the case of an acceleration resulting from a default
by the Company in the payment of the Redemption Price with respect to the Notes to be redeemed).

          SECTION 4.2. Notice of Optional Redemption; Selection of Notes.

          In case the Company shall desire to exercise the right to redeem all or, as the case may be,
any part of the Notes pursuant to Section 4.1 hereof, it shall fix a date for redemption and it or,
at its written request received by the Trustee not fewer than five (5) Business Days prior (or such
shorter period of time as may be acceptable to the Trustee) to the date the notice of redemption is
to be mailed, the Trustee in the name of and at the expense of the Company, shall mail or cause to
be mailed a notice of such redemption not fewer than thirty (30) calendar days nor more than sixty
(60) calendar days prior to the Redemption Date to each Holder of Notes so to be redeemed in whole
or in part at its last address as the same appears on the register; provided that if the Company
makes such request of the Trustee, it shall, together with such request, also give written notice
of the Redemption Date to the Trustee; provided further that the text of the notice shall be
prepared by the Company. Such mailing shall be by first class mail. The notice, if mailed in the
manner herein provided, shall be conclusively presumed to have been duly given, whether or not the
Holder receives such notice. In any case, failure to give such notice by mail or any defect in the
notice to the Holder of any Note designated for redemption as a whole or in part shall not affect
the validity of the proceedings for the redemption of any other Note.

          Each such notice of redemption shall specify: (i) the aggregate principal amount of Notes to
be redeemed, (ii) the CUSIP number or numbers, if any, of the Notes being redeemed, (iii) the
Redemption Date (which shall be a Business Day), (iv) the Redemption Price at which Notes are to be
redeemed, (v) the place or places of payment and that payment will be made upon presentation and
surrender of such Notes and (vi) that interest accrued and unpaid to, but excluding, the Redemption
Date will be paid as specified in said notice, and that on and after said date interest thereon or
on the portion thereof to be redeemed will cease to accrue. If fewer than all the Notes are to be
redeemed, the notice of redemption shall identify the Notes to be redeemed (including CUSIP
numbers, if any). In case any Note is to be redeemed in part only, the notice of redemption shall
state the portion of the principal amount thereof to be redeemed

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and shall state that, on and after the Redemption Date, upon surrender of such Note, a new Note or
Notes in principal amount equal to the unredeemed portion thereof will be issued.

          Whenever any Notes are to be redeemed, the Company will give the Trustee written notice of the
Redemption Date as to the aggregate principal amount of Notes to be redeemed not fewer than thirty
(30) calendar days (or such shorter period of time as may be acceptable to the Trustee) prior to
the Redemption Date.

          On or prior to the Redemption Date specified in the notice of redemption given as provided in
this Section 4.2, the Company will deposit with the Paying Agent an amount of monies in immediately
available funds sufficient to redeem on the Redemption Date all the Notes (or portions thereof) so
called for redemption at the appropriate Redemption Price; provided that if such payment is made on
the Redemption Date, it must be received by the Paying Agent, by 11:00 a.m., New York City time, on
such date.

          If less than all of the outstanding Notes are to be redeemed, the Trustee shall select the
Notes or portions thereof of the Global Note or the Notes in certificated form to be redeemed (in
principal amounts of $2,000 and integral multiples of $1,000 in excess thereof), on a pro rata
basis or such other method the Trustee deems fair and appropriate or is required by the Depository.
The Notes (or portions thereof) so selected for redemption shall be deemed duly selected for
redemption for all purposes hereof.

          SECTION 4.3. Payment of Notes Called for Redemption by the Company. If notice of
redemption has been given as provided in Section 4.2, the Notes or portion of Notes with respect to
which such notice has been given shall become due and payable on the Redemption Date and at the
place or places stated in such notice at the Redemption Price, and unless the Company shall default
in the payment of such Notes at the Redemption Price, so long as the Paying Agent holds funds
sufficient to pay the Redemption Price of the Notes to be redeemed on the Redemption Date, then (a)
such Notes will cease to be outstanding on and after the Redemption Date, (b) interest on the Notes
or portion of Notes so called for redemption shall cease to accrue on and after the Redemption
Date, (c) on and after the Redemption Date (unless the Company shall default in the payment of the
Redemption Price), such Notes will cease to be entitled to any benefit or security under this
Indenture, and (d) the Holders of the Notes shall have no right in respect of such Notes except the
right to receive the Redemption Price thereof. On presentation and surrender of such Notes at a
place of payment in said notice specified, the said Notes or the specified portions thereof shall
be paid and redeemed by the Company at the Redemption Price, together with interest accrued thereon
to, but excluding, the Redemption Date.

          Upon presentation of any Note redeemed in part only, the Company shall execute and the Trustee
shall authenticate and make available for delivery to the Holder thereof, at the expense of the
Company, a new Note or Notes, of authorized denominations, in principal amount equal to the
unredeemed portion of the Notes so presented.

ARTICLE FIVE

GUARANTEE

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     This Article Five shall replace Article XII of the Base Indenture with respect to the Notes
only.

     SECTION 5.1 Guarantee.

     By its execution hereof, the Guarantor acknowledges and agrees that the Notes shall be
entitled to the benefits of a Guarantee. Accordingly, subject to the provisions of this Article,
the Guarantor hereby unconditionally guarantees to each Holder of a Note authenticated and
delivered by the Trustee and its successors and assigns that: (i) the principal of (including the
Redemption Price upon redemption pursuant to Article Four), premium, if any, and interest, if any,
on the Notes shall be duly and punctually paid in full when due, whether at the Maturity, upon
acceleration, upon redemption or otherwise, and interest on overdue principal, premium, if any, and
(to the extent permitted by law) interest on any interest, if any, on the Notes and all other
obligations of the Company to the Holders or the Trustee hereunder or under the Notes (including
fees, expenses or other) shall be promptly paid in full or performed, all in accordance with the
terms hereof; and (ii) in case of any extension of time of payment or renewal of any Notes or any
of such other obligations, the same shall be promptly paid in full when due or performed in
accordance with the terms of the extension or renewal, whether at the Maturity, by acceleration,
call for redemption or otherwise, subject, however, in the case of
clauses (i) and (ii) above, to the
limitations set forth in this Article (collectively, the “Guarantee Obligations”).

     Subject to the provisions of this Article, the Guarantor hereby agrees that its Guarantee
hereunder shall be unconditional, irrespective of the validity, regularity or enforceability of the
Notes or the Indenture, the absence of any action to enforce the same, any waiver or consent by any
Holder of the Notes with respect to any thereof, the entry of any judgment against the Company, any
action to enforce the same or any other circumstance which might otherwise constitute a legal or
equitable discharge or defense of the Guarantor. The Guarantor hereby waives and relinquishes: (a)
any right to require the Trustee, the Holders or the Company (each, a “Benefited Party”) to
proceed against the Company or any other person or to proceed against or exhaust any security held
by a Benefited Party at any time or to pursue any other remedy in any secured party’s power before
proceeding against the Guarantor; (b) any defense that may arise by reason of the incapacity, lack
of authority, death or disability of any other person or persons or the failure of a Benefited
Party to file or enforce a claim against the estate (in administration, bankruptcy or any other
proceeding) of any other person or persons; (c) demand, protest and notice of any kind (except as
expressly required by the Indenture), including but not limited to notice of the existence,
creation or incurring of any new or additional indebtedness or obligation or of any action or
non-action on the part of the Guarantor, the Company, any Benefited Party, any creditor of the
Guarantor or the Company or on the part of any other person whomsoever in connection with any
obligations the performance of which are hereby guaranteed; (d) any defense based upon an election
of remedies by a Benefited Party, including but not limited to an election to proceed against the
Guarantor for reimbursement; (e) any defense based upon any statute or rule of law which provides
that the obligation of a surety must be neither larger in amount nor in other respects more
burdensome than that of the principal; (f) any defense arising because of a Benefited Party’s
election, in any proceeding instituted under the Bankruptcy Law, of the application of Section
1111(b)(2) of the Bankruptcy Law; and (g) any defense based on any borrowing or grant of a security
interest under Section 364 of the Bankruptcy Law. The Guarantor hereby covenants that, except as
otherwise provided therein, the Guarantee shall not

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be discharged except by payment in full of all Guarantee Obligations, including the principal,
premium, if any, and interest on the Notes and all other costs provided for under the Indenture.

     If any Holder or the Trustee is required by any court or otherwise to return to either the
Company or the Guarantor, or any trustee or similar official acting in relation to either the
Company or the Guarantor, any amount paid by the Company or the Guarantor to the Trustee or such
Holder, the Guarantee, to the extent theretofore discharged, shall be reinstated in full force and
effect. The Guarantor agrees that it shall not be entitled to any right of subrogation in relation
to the Holders in respect of any Guarantee Obligations hereby until payment in full of all such
obligations guaranteed hereby. The Guarantor agrees that, as between it, on the one hand, and the
Holders of Notes and the Trustee, on the other hand, (x) the maturity of the obligations guaranteed
hereby may be accelerated as provided in Article VI of the Base Indenture for the purposes hereof,
notwithstanding any stay, injunction or other prohibition preventing such acceleration in respect
of the Guarantee Obligations, and (y) in the event of any acceleration of such obligations as
provided in Article VI of the Base Indenture, such Guarantee Obligations (whether or not due and
payable) shall forthwith become due and payable by the Guarantor for the purpose of the Guarantee.

     SECTION 5.2 Execution and Delivery of Guarantee.

     (a) To evidence the Guarantee set forth in Section 5.1 hereof, the Guarantor agrees that a
Notation of Guarantee substantially in the form included in
Exhibit B hereto shall be endorsed on
each Note authenticated and delivered by the Trustee and that this First Supplemental Indenture
shall be executed on behalf of the Guarantor by an Officer of the Guarantor.

     (b) The Guarantor agrees that the Guarantee set forth in this Article Five shall remain in
full force and effect and apply to all the Notes notwithstanding any failure to endorse on each
Note a notation of the Guarantee.

     (c) If an Officer whose facsimile signature is on a Note or a notation of Guarantee no longer
holds that office at the time the Trustee authenticates the Note on which the Guarantee is
endorsed, the Guarantee shall be valid nevertheless.

     (d) The delivery of any Note by the Trustee, after the authentication thereof
hereunder, shall constitute due delivery of the Guarantee set forth in this First
Supplemental Indenture on behalf of the Guarantor.

     SECTION 5.3 Limitation of Guarantor’s Liability; Certain Bankruptcy Events.

     (a) The Guarantor, and by its acceptance hereof each Holder, hereby confirms that it is the
intention of all such parties that the Guarantee Obligations of the Guarantor pursuant to its
Guarantee not constitute a fraudulent transfer or conveyance for purposes of any Bankruptcy Law,
the Uniform Fraudulent Conveyance Act, the Uniform Fraudulent Transfer Act or any similar federal
or state law. To effectuate the foregoing intention, the Holders and the Guarantor hereby
irrevocably agree that the Guarantee Obligations of the Guarantor under this Article Five shall be
limited to the maximum amount as shall, after giving effect to all other contingent and fixed
liabilities of the Guarantor, result in the Guarantee Obligations of the Guarantor under the
Guarantee not constituting a fraudulent transfer or conveyance.

     (b) The Guarantor hereby covenants and agrees, to the fullest extent that it may do so under
applicable law, that in the event of the insolvency, bankruptcy, dissolution, liquidation or

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reorganization of the Company, the Guarantor shall not file (or join in any filing of), or
otherwise seek to participate in the filing of, any motion or request seeking to stay or to
prohibit (even temporarily) execution on the Guarantee and hereby waives and agrees not to take
the benefit of any such stay of execution, whether under Section 362 or 105 of the Bankruptcy Law
or otherwise.

     SECTION 5.4 Application of Certain Terms and Provisions to the Guarantor.

     (a) For purposes of any provision of the Indenture which provides for the delivery by the
Guarantor of an Officers’ Certificate and/or an Opinion of Counsel, the definitions of such terms
in Section 2.1 hereof shall apply to the Guarantor as if references therein to the Company or the
Guarantor, as applicable, were references to the Guarantor.

     (b) Upon any demand, request or application by the Guarantor to the Trustee to take any
action under the Indenture, the Guarantor shall furnish to the Trustee such certificates and
opinions as are required in Sections 10.4 and 10.5 of the Base Indenture, as if all references
therein to the Company were references to the Guarantor.

ARTICLE SIX

ADDITIONAL COVENANTS

     The following additional covenants shall apply with respect to the Notes so long as any of the
Notes remain outstanding.

     SECTION 6.1. Maintenance of Office or Agency. The Company will maintain an office or
agency in the United States where the Notes may be surrendered for registration of transfer or
exchange or for presentation for payment or redemption and where notices and demands to or upon the
Company in respect of the Notes and the Indenture may be served. As of the date of the Indenture,
such office shall be the Corporate Trust Office and, at any other time, at such other address as
the Trustee may designate from time to time by notice to the Company. The Company will give prompt
written notice to the Trustee of the location, and any change in the location, of such office or
agency not designated or appointed by the Trustee. If at any time the Company shall fail to
maintain any such required office or agency or shall fail to furnish the Trustee with the address
thereof, such presentations, surrenders, notices and demands may be made or served at the Corporate
Trust Office.

     The Company may also from time to time designate co-registrars and one or more offices or
agencies where the Notes may be presented or surrendered for any or all such purposes and may from
time to time rescind such designations. The Company will give prompt written notice to the Trustee
of any such designation or rescission and of any change in the location of any such other office or
agency.

     The Company hereby initially designates the Trustee as Paying Agent, Service Agent, Registrar
and Custodian and the Corporate Trust Office shall be considered as one
such office or agency of the Company for each of the aforesaid purposes.

     SECTION 6.2. Appointments to Fill Vacancies in Trustee’s Office. The Company, whenever
necessary to avoid or fill a vacancy in the office of Trustee, will appoint, upon the

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terms and conditions and otherwise as provided in Section 7.8 of the Base Indenture, a Trustee, so
that there shall at all times be a Trustee hereunder.

     SECTION 6.3. Limitations on Incurrence of Debt.

     (a) The Company will not, and will not permit any of its Subsidiaries to, incur any Debt,
other than Intercompany Debt and guarantees of Debt incurred by the Company or its Subsidiaries in
compliance with this Indenture, if, immediately after giving effect to the incurrence of such Debt
and the application of the proceeds thereof, the aggregate principal amount of all of the Company’s
and its Subsidiaries’ outstanding Debt on a consolidated basis determined in accordance with GAAP
is greater than 60% of the sum of (without duplication) (1) Total Assets as of the end of the
calendar quarter covered in the Company’s Annual Report on Form 10-K or Quarterly Report on Form
10-Q, as the case may be, most recently filed with the SEC (or, if such filing is not permitted
under the Exchange Act, with the Trustee) prior to the incurrence of such additional Debt and (2)
the purchase price of any real estate assets or mortgages receivable acquired, and the amount of
any securities offering proceeds received (to the extent such proceeds were not used to acquire
real estate assets or mortgages receivable or used to reduce Debt), by the Company or any of its
Subsidiaries since the end of such calendar quarter, including those proceeds obtained in
connection with the incurrence of such additional Debt.

     (b) The Company will not, and will not permit any of its Subsidiaries to, incur any Debt,
other than Intercompany Debt and guarantees of Debt incurred by the Company or its Subsidiaries in
compliance with this Indenture, secured by any mortgage, lien, charge, pledge, encumbrance or
security interest of any kind upon any of the Company’s or any of its Subsidiaries’ property if,
immediately after giving effect to the incurrence of such Debt and the application of the proceeds
thereof, the aggregate principal amount of all of the Company’s and its Subsidiaries’ outstanding
Debt on a consolidated basis which is secured by any mortgage, lien, charge, pledge, encumbrance or
security interest on the Company’s or its Subsidiaries’ property is greater than 40% of the sum of
(without duplication) (1) Total Assets as of the end of the calendar quarter covered in the
Company’s Annual Report on Form 10-K or Quarterly Report on Form 10-Q, as the case may be, most
recently filed with the SEC (or, if such filing is not permitted under the Exchange Act, with the
Trustee) prior to the incurrence of such additional Debt and (2) the purchase price of any real
estate assets or mortgages receivable acquired, and the amount of any securities offering proceeds
received (to the extent such proceeds were not used to acquire real estate assets or mortgages
receivable or used to reduce Debt), by the Company or any of its Subsidiaries since the end of such
calendar quarter, including those proceeds obtained in connection with the incurrence of such
additional Debt; provided, that for purposes of this limitation, the amount of obligations under
capital leases shown as a liability on the Company’s consolidated balance sheet shall be deducted
from Debt and from Total Assets.

     (c) The Company will not, and will not permit any of its Subsidiaries to, incur
any Debt, other than Intercompany Debt and guarantees of Debt by the Company or its Subsidiaries in
compliance with this Indenture, if the ratio of Consolidated Income Available for Debt Service to
the Annual Debt Service Charge for the four consecutive fiscal quarters most recently ended prior
to the date on which such additional Debt is to be incurred shall have been less than 1.5 to

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1.0, on an unaudited pro forma basis after giving effect thereto and to the application of the
proceeds therefrom, and calculated on the assumption that: (1) such Debt and any other Debt
incurred by the Company and its Subsidiaries since the first day of such four-quarter period and
the application of the proceeds therefrom, including to refinance other Debt, had occurred at the
beginning of such period; (2) the repayment or retirement of any other Debt by the Company and its
Subsidiaries since the first day of such four-quarter period had been repaid or retired at the
beginning of such period (except that, in making such computation, the amount of Debt under any
revolving credit facility shall be computed based upon the average daily balance of such Debt
during such period); (3) in the case of Acquired Debt or Debt incurred in connection with any
acquisition since the first day of such four-quarter period, the related acquisition had occurred
as of the first day of such period, with the appropriate adjustments with respect to such
acquisition being included in such unaudited pro forma calculation; and (4) in the case of any
acquisition or disposition by the Company or its Subsidiaries of any asset or group of assets or
other placement of any assets in service or removal of any assets from service by the Company or
any of its Subsidiaries since the first day of such four-quarter period, whether by merger, stock
purchase or sale, or asset purchase or sale, such acquisition, disposition, placement in service or
removal from service, or any related repayment of Debt had occurred as of the first day of such
period, with the appropriate adjustments with respect to such acquisition, disposition, placement
in service or removal from service, being included in such unaudited pro forma calculation.

     (d) The Company, together with its Subsidiaries, will at all times maintain an Unencumbered Total
Asset Value in an amount not less than 150% of the aggregate outstanding principal amount of all
the Company’s and its Subsidiaries’ unsecured Debt, taken as a whole.

     (e) The Company will, and will cause each of its Subsidiaries to, maintain insurance with
financially sound and reputable insurance companies against such risks and in such amounts as is
customarily maintained by persons engaged in similar businesses or as may be required by applicable
law.

ARTICLE SEVEN

DEFAULTS AND REMEDIES

     Sections 7.1, 7.2 and 7.3 hereof shall replace Sections 6.1, 6.2 and 6.7, respectively, of the
Base Indenture with respect to the Notes only.

     SECTION 7.1. Events of Default.

     “Event of Default,” wherever used herein or in the Base Indenture with respect to the
Notes, means any one of the following events:

     (a) default in the payment of any interest on the Notes when it becomes due and payable, and
continuance of that default for a period of thirty (30) days (unless the entire
amount of the payment is deposited by the Company with the Trustee or with a Paying Agent
prior to the expiration of such 30-day period);

     (b) default in the payment of principal of, premium on or Redemption Price due with respect
to, the Notes when the same become due and payable;

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     (c) failure to pay any Debt of the Company, the Guarantor or any Subsidiary in which the
Company has invested at least $50,000,000 in capital (a “Significant Subsidiary”), in an
outstanding principal amount in excess of $50,000,000 at final maturity or upon acceleration after
the expiration of any applicable grace period, which Debt is not discharged, or such default in
payment or acceleration is not cured or rescinded, within thirty (30) days after written notice to
the Company from the Trustee (or to the Company and the Trustee from Holders of at least 25% in
aggregate principal amount of the Notes then outstanding);

     (d) default in the performance or breach of any other covenant or warranty by the Company or
the Guarantor in the Indenture (other than a covenant or warranty that has been included in the
Indenture solely for the benefit of a series of debt securities other than the Notes), which
default continues uncured for a period of sixty (60) days after the Company receives written notice
from the Trustee or the Company and the Trustee receive written notice from the Holders of at least
25% in aggregate principal amount of the Notes then outstanding; and

     (e) the Company, the Guarantor or any Significant Subsidiary pursuant to or under or within
meaning of any Bankruptcy Law:

          (i) commences a voluntary case or proceeding seeking liquidation, reorganization or other
relief with respect to the Company, the Guarantor or a Significant Subsidiary or its debts or
seeking the appointment of a trustee, receiver, liquidator, custodian or other similar official of
the Company, the Guarantor or a Significant Subsidiary or any substantial part of the property of
the Company, the Guarantor or a Significant Subsidiary; or

          (ii) consents to any such relief or to the appointment of or taking possession by any such
official in an involuntary case or other proceeding commenced against the Company, the Guarantor
or a Significant Subsidiary; or

          (iii) consents to the appointment of a Custodian of it or for all or substantially of its
property; or

          (iv) makes a general assignment for the benefit of creditors; or

          (v)
generally is unable to pay its debts as the same become due, or

     (f) an involuntary case or other proceeding shall be commenced against the Company, the
Guarantor or any Significant Subsidiary seeking liquidation, reorganization or other relief with
respect to the Company, the Guarantor or a Significant Subsidiary or its debts under any
bankruptcy, insolvency or other similar law now or hereafter in effect or seeking the appointment
of a trustee, receiver, liquidator, custodian or other similar official of the Company, the
Guarantor or a Significant Subsidiary or any substantial part of the property of the Company, the
Guarantor or a Significant Subsidiary, and such involuntary case or other proceeding shall remain
undismissed and unstayed for a period of sixty (60) calendar days; or

     (g) a court of competent jurisdiction enters an order or decree under any Bankruptcy Law that

          (i) is for relief against the Company, the Guarantor or any of Significant
Subsidiary in an involuntary case or proceeding;

          (ii) appoints a Custodian of the Company, the Guarantor or a Significant Subsidiary or any
substantial part of the property of the Company, the Guarantor or a Significant Subsidiary;
or

21

 

          (iii) orders the liquidation of the Company, the Guarantor or a Significant Subsidiary; and,
in each case in this clause (g), the order or decree remains unstayed and in effect for sixty (60)
calendar days.

     The term “Custodian” means any receiver, trustee, assignee, liquidator or similar official
under any Bankruptcy Law.

     SECTION 7.2. Acceleration of Maturity; Rescission and Annulment. If an Event of
Default with respect to the Notes at the time outstanding occurs and is continuing (other than an
Event of Default referred to in Section 7.1 (e), (f) or (g) hereof), then in every such case the
Trustee or the Holders of not less than 25% in principal amount of the outstanding Notes may, by a
notice in writing to the Company (and to the Trustee if given by the Holders), declare to be due
and payable immediately the principal of, and accrued and unpaid interest, if any, on all of the
Notes, and upon any such declaration such principal amount (or specified amount) and accrued and
unpaid interest, if any, shall become immediately due and payable. If an Event of Default specified
in Section 7.1 (e), (f) or (g) hereof shall occur, the principal amount (or specified amount) of
and accrued and unpaid interest, if any, on all outstanding Notes will automatically become and be
immediately due and payable without any declaration or other act on the part of the Trustee or any
Holder of outstanding Notes.

     At any time after a declaration of acceleration with respect to Notes has been made, but
before a judgment or decree for payment of the money due has been obtained by the Trustee, the
Holders of a majority in principal amount of the outstanding Notes, by written notice to the
Company and the Trustee, may rescind and annul such declaration and the acceleration if all Events
of Default, other than the non-payment of accelerated principal and interest, if any, with respect
to the Notes, have been cured or waived as provided in Section 6.13 of the Base Indenture. No such
rescission and annulment shall extend to or shall affect any subsequent default or Event of
Default, or shall impair any right consequent thereon.

     SECTION 7.3. Limitation on Suits.

     No Holder of the Notes shall have any right to institute any proceeding, judicial or
otherwise, with respect to the Indenture or for the appointment of a receiver or trustee, or for
any remedy under the Indenture, unless

     (a) such Holder has previously given to the Trustee written
notice of a continuing Event of Default with respect to the Notes;

     (b) the Holders of at least 25%
in principal amount of the outstanding Notes shall have made written request to the Trustee to
institute proceedings in respect of such Event of Default in its own name as Trustee hereunder,

     (c) such Holder or Holders have offered to the Trustee reasonable indemnity against the costs, expenses
and liabilities to be incurred in compliance with such request;

     (d) the Trustee for sixty (60) days
after its receipt of such notice, request and offer of indemnity has failed to institute any such
proceeding; and

22

 

     (e) no direction inconsistent with such written request has been given to the Trustee during
such 60-day period by the Holders of at least 25% in principal amount of the outstanding Notes.

ARTICLE EIGHT

AMENDMENTS AND WAIVERS

     Section 8.1 hereof shall replace Section 9.1 of the Base Indenture with respect to the Notes
only.

     SECTION 8.1. Without Consent of Holders.

     The Company, when authorized by the resolutions of the Board of Directors, the Guarantor and
the Trustee may, from time to time, and at any time enter into an indenture or indentures
supplemental without the consent of the Holders of the Notes hereto for one or more of the
following purposes:

     (a) to cure any ambiguity, defect or inconsistency in the Indenture; provided that this action
shall not adversely affect the interests of the Holders of the Notes in any material respect;

     (b) to evidence a successor to the Company as obligor or to the Guarantor as guarantor in
accordance with Article V of the Base Indenture;

     (c) to make any change that does not adversely affect the interests of the Holders of any
Notes then outstanding;

     (d) to provide for the issuance of Additional Notes in accordance with the limitations set
forth in the Indenture;

     (e) to provide for the acceptance of appointment of a successor Trustee or facilitate the
administration of the trusts under the Indenture by more than one Trustee;

     (f) to comply with the requirements of the SEC in order to effect or maintain the
qualification of the Indenture under the TIA;

     (g) to reflect the release of the Guarantor as guarantor, in accordance with the Indenture;

     (h) to secure the Notes;

     (i) to add guarantors with respect to the Notes; and

     (j) to conform the text of the Indenture, any Guarantee or the Notes to any provision of
the description thereof set forth in the Prospectus to the extent that such provision in the
Prospectus was intended to be a verbatim recitation of a provision of the Indenture, such
Guarantee or the Notes (as certified in an Officers’ Certificate).

     Upon the written request of the Company, accompanied by a copy of the resolutions of the Board
of Directors certified by the Guarantor’s Secretary or Assistant Secretary authorizing

23

 

the execution of any supplemental indenture, the Trustee is hereby authorized to join with the
Company and the Guarantor in the execution of any such supplemental indenture, to make any further
appropriate agreements and stipulations that may be therein contained and to accept the conveyance,
transfer and assignment of any property thereunder, but the Trustee shall not be obligated to, but
may in its discretion, enter into any supplemental indenture that affects the Trustee’s own rights,
duties or immunities under the Indenture or otherwise.

     Any supplemental indenture authorized by the provisions of this Section 8.1 may be executed by
the Company, the Guarantor and the Trustee without the consent of the Holders of any of the Notes
at the time outstanding, notwithstanding any of the provisions of Section 9.2 or 9.3 of the Base
Indenture.

ARTICLE NINE

MEETINGS OF HOLDERS OF NOTES

     SECTION 9.1. Purposes for Which Meetings May Be Called. A meeting of Holders may be
called at any time and from time to time pursuant to this Article Nine to make, give or take any
request, demand, authorization, direction, notice, consent, waiver or other act provided by the
Indenture to be made, given or taken by Holders.

     SECTION 9.2. Call, Notice and Place of Meetings.

     (a) The Trustee may at any time call a meeting of Holders for any purpose specified in Section
9.1 hereof, to be held at such time and at such place in The City of New York, New York as the
Trustee shall determine. Notice of every meeting of Holders, setting forth the time and the place
of such meeting and in general terms the action proposed to be taken at such meeting, shall be
given, in the manner provided in Section 10.2 of the Base Indenture, not less than twenty-one (21)
nor more than one hundred eighty (180) days prior to the date fixed for the meeting.

     (b) In case at any time the Company, the Guarantor or the Holders of at least 25% in
principal amount of the outstanding Notes shall have requested the Trustee to call a
meeting of the Holders for any purpose specified in Section 9.1 hereof, by written request
setting forth in reasonable detail the action proposed to be taken at the meeting, and the
Trustee shall not have mailed notice of or made the first publication of the notice of such
meeting within twenty-one (21) days after receipt of such request or shall not thereafter
proceed to cause the meeting to be held as provided herein, then the Company, the
Guarantor, if applicable, or the Holders in the amount above specified, as the case may be,
may determine the time and the place in the City of New York, New York, for such meeting
and may call such meeting for such purposes by giving notice thereof as provided in clause
(a) of this Section.

     SECTION 9.3. Persons Entitled to Vote at Meetings. To be entitled to vote at any
meeting of Holders, a person shall be (1) a Holder of one or more outstanding Notes, or (2) a
person appointed by an instrument in writing as proxy for a Holder or Holders of one or more
outstanding Notes by such Holder or Holders; provided, that none of the Company, any other obligor
upon the Notes or any Affiliate of the Company shall be entitled to vote at any meeting of Holders
or be counted for purposes of determining a quorum at any such meeting in respect of any Notes
owned by such persons. The only persons who shall be entitled to be present or to

24

 

speak at any meeting of Holders shall be the persons entitled to vote at such meeting and their
counsel, any representatives of the Trustee and its counsel, any representatives of the Guarantor
and its counsel and any representatives of the Company and its counsel.

     SECTION 9.4. Ouorum; Action. The persons entitled to vote a majority in principal
amount of the outstanding Notes shall constitute a quorum for a meeting of Holders; provided,
however, that if any action is to be taken at the meeting with respect to a consent or waiver which
may be given by the Holders of not less than a specified percentage in principal amount of the
outstanding Notes, the persons holding or representing the specified percentage in principal amount
of the outstanding Notes will constitute a quorum. In the absence of a quorum within thirty (30)
minutes after the time appointed for any such meeting, the meeting shall, if convened at the
request of Holders, be dissolved. In any other case the meeting may be adjourned for a period of
not less than ten (10) days as determined by the chairman of the meeting prior to the adjournment
of such meeting. In the absence of a quorum at any such adjourned meeting, such adjourned meeting
may be further adjourned for a period of not less than ten (10) days as determined by the chairman
of the meeting prior to the adjournment of such adjourned meeting. Notice of the reconvening of any
adjourned meeting shall be given as provided in Section 9.2 hereof, except that such notice need be
given only once not less than five (5) days prior to the date on which the meeting is scheduled to
be reconvened. Notice of the reconvening of an adjourned meeting shall state expressly the
percentage, as provided above, of the principal amount of the outstanding Notes which shall
constitute a quorum.

     Except as limited by the proviso to Section 9.3 of the Base Indenture, any resolution
presented to a meeting or adjourned meeting duly reconvened at which a quorum is present as
aforesaid may be adopted only by the affirmative vote of the Holders of a majority in principal
amount of the outstanding Notes; provided, however, that, except as limited by the proviso to
Section 9.3 of the Base Indenture, any resolution with respect to any request, demand,
authorization, direction, notice, consent, waiver or other action which the Indenture expressly
provides may be made, given or taken by the Holders of a specified percentage, which is less than a
majority, in principal amount of the outstanding Notes may be adopted at a meeting or an adjourned
meeting duly reconvened and at which a quorum is present as aforesaid by the affirmative vote of
the Holders of such specified percentage in principal amount of the outstanding Notes.

     Any resolution passed or decision taken at any meeting of Holders duly held in accordance with
this Section 9.4 shall be binding on all the Holders, whether or not such Holders were present or
represented at the meeting.

     SECTION 9.5. Determination of Voting Rights; Conduct and Adjournment of
Meetings.

     (a) Notwithstanding any other provisions of the Indenture, the Trustee may make such
reasonable regulations as it may deem advisable for any meeting of Holders in
regard to proof of the holding of Notes and of the appointment of proxies and in regard to the
appointment and duties of inspectors of votes, the submission and examination of proxies,
certificates and other evidence of the right to vote, and such other matters concerning the conduct
of the meeting as it shall deem appropriate.

25

 

     (b) The Trustee shall, by an instrument in writing, appoint a temporary chairman of the
meeting, unless the meeting shall have been called by the Company or by Holders as provided in
Section 9.2(b) hereof, in which case the Company, the Guarantor or the Holders calling the meeting,
as the case may be, shall in like manner appoint a temporary chairman. A permanent chairman and a
permanent secretary of the meeting shall be elected by vote of the persons entitled to vote a
majority in principal amount of the outstanding Notes of such series represented at the meeting.

     (c) At any meeting, each Holder or proxy shall be entitled to one (1) vote for each $1,000
principal amount of Notes held or represented by him; provided, however, that no vote shall be cast
or counted at any meeting in respect of any Note challenged as not outstanding and ruled by the
chairman of the meeting to be not outstanding. The chairman of the meeting shall have no right to
vote, except as a Holder or proxy.

     (d) Any meeting of Holders duly called pursuant to Section 9.2 hereof at which a quorum is
present may be adjourned from time to time by persons entitled to vote a majority in principal
amount of the outstanding Notes represented at the meeting; and the meeting may be held as so
adjourned without further notice.

     SECTION 9.6.Counting Votes and Recording Action of Meetings. The vote upon any resolution
submitted to any meeting of Holders shall be by written ballots on which shall be subscribed the
signatures of the Holders or of their representatives by proxy and the principal amounts and serial
numbers of the outstanding Notes held or represented by them. The permanent chairman of the meeting
shall appoint two (2) inspectors of votes who shall count all votes cast at the meeting for or
against any resolution and who shall make and file with the secretary of the meeting their verified
written reports in triplicate of all votes cast at the meeting. A record, at least in triplicate,
of the proceedings of each meeting of Holders shall be prepared by the secretary of the meeting and
there shall be attached to said record the original reports of the inspectors of votes on any vote
by ballot taken thereat and affidavits by one or more persons having knowledge of the facts setting
forth a copy of the notice of the meeting and showing that said notice was given as provided in
Section 9.2 hereof and, if applicable, Section 9.4 hereof. Each copy shall be signed and verified
by the affidavits of the permanent chairman and secretary of the meeting and one (1) such copy
shall be delivered to the Company and the Guarantor, and another to the Trustee to be preserved by
the Trustee, the latter to have attached thereto the ballots voted at the meeting. Any record so
signed and verified shall be conclusive evidence of the matters therein stated.

ARTICLE TEN

MISCELLANEOUS PROVISIONS

     SECTION 10.1. Ratification of Indenture. Except as expressly modified or amended
hereby, the Indenture continues in full force and effect and is in all respects confirmed and
preserved.

     SECTION 10.2. Governing Law. This First Supplemental Indenture shall be governed by
and construed in accordance with the laws of the State of New York. This First Supplemental
Indenture is subject to the provisions of the Trust Indenture Act of 1939, as amended and shall, to
the extent applicable, be governed by such provisions.

26

 

     SECTION 10.3. Counterparts. This First Supplemental Indenture may be executed in any
number of counterparts, each of which so executed shall be deemed to be an original, but all such
counterparts shall together constitute but one and the same instrument.

     SECTION 10.4. Notices. Except as otherwise provided in the Indenture, notices to
Holders of the Notes will be given by mail to the addresses of Holders of the Notes as they appear
in the Note register; provided that notices given to Holders holding Notes in book-entry form may
be given through the facilities of the Depository or any successor depository.

     SECTION 10.5. Successors and Assigns. This First Supplemental Indenture shall be
binding upon the Company and each Guarantor, and their respective successors and assigns and inure
to the benefit of the respective successors and assigns of the Trustee and the Holders.

     SECTION 10.6. Time of the Essence. Time is of the essence with regard to the
Company’s and the Guarantors’ performance of their respective obligations hereunder.

     SECTION 10.7. Rights of Holders Limited. Notwithstanding anything herein to the
contrary, the rights of Holders with respect to this First Supplemental Indenture and the Guarantee
shall be limited in the manner and to the extent the rights of Holders are limited under the
Indenture with respect to the Indenture and the Securities.

     SECTION 10.8. Rights and Duties of Trustee. The rights and duties of the Trustee shall
be determined by the express provisions of the Base Indenture and, except as expressly set forth in
this First Supplemental Indenture, nothing in this First Supplemental Indenture shall in any way
modify or otherwise affect the Trustee’s rights and duties thereunder. The Trustee makes no
representation or warranty, express or implied, as to the validity of this First Supplemental
Indenture and, except insofar as relates to the validity hereof with respect to the Trustee
specifically, the Trustee shall not be liable in connection therewith. The Trustee makes no
representation or warranty, express or implied, as to the accuracy or completeness of any
information contained in any offering or disclosure document related to the sale of the Securities,
except for such information that specifically pertains to the Trustee itself, or any information
incorporated therein by reference as it relates specifically to the Trustee. If and when the
Trustee shall be or become a creditor of the Company (or any other obligor upon the Notes),
excluding any creditor relationship listed in TIA Section 311(b), the Trustee shall be subject to
the provisions of the TIA regarding the collection of claims against the Company (or any such other
obligor). If the Trustee has or shall acquire a conflicting interest within the meaning of the TIA,
the Trustee shall either eliminate such interest or resign, to the extent and in the manner
provided by, and subject to the provisions of, the TIA and the Indenture.

     SECTION 10.9. Notices.

     Any notice or communication by the Company, the Guarantor or the Trustee to the other, or by a
Holder of the Notes to the Company, the Guarantor or the Trustee, is duly given if in writing and
delivered in person or mailed by first-class mail:

27

 

if to the Company or the Guarantor:

BioMed
Realty, L.P.
17190 Bernardo Center Drive
San
Diego, California 92128

Attention: General Counsel

Telephone: (858) 485-9840

Facsimile: (858) 485-9843

if to
the Trustee:

U.S. Bank National Association

Corporate Trust Services
633 West
Fifth Street, 24th Floor
Los
Angeles, California 90071

Attention:
Paula Oswald (BioMed Realty 3.85% Notes due 2016)
Telephone: (213) 615-6043

Facsimile: (213) 615-6197

      The Company, the Guarantor or the Trustee by written notice to the other
may designate additional or different addresses for subsequent notices or communications.

     Any notice or communication to a Holder of the Notes shall be mailed by first-class mail to
his address shown on the register kept by the Registrar. Failure to mail a notice or communication
to a Holder of the Notes or any defect in it shall not affect its sufficiency with respect to other
Holders of the Notes or any other Series.

     If a notice or communication is mailed or published in the manner provided above, within the
time prescribed, it is duly given, whether or not the Securityholder receives it. If a notice or
communication is delivered in person, by courier, telexed or by facsimile transmission (with
confirmation of receipt) within the time prescribed, it is duly given.

     If the Company or the Guarantor mails a notice or communication to Holders, it shall mail a
copy to the Trustee and each Agent at the same time.

     SECTION 10.10. Headings, etc. The headings of the Articles and Sections of this First
Supplemental Indenture have been inserted for convenience of reference only, are not to be
considered a part hereof, and shall in no way modify or restrict any of the terms or provisions
hereof.

     SECTION 10.11. Conflicts. In the event of any conflict between the terms of this First
Supplemental Indenture and the terms of the Indenture, the terms of this First Supplemental
Indenture shall control.

     SECTION 10.12. Trust Indenture Act Controls. If any provision of this First
Supplemental Indenture limits, qualifies, or conflicts with another provision which is required or
deemed to be included in this First Supplemental Indenture by the TIA, such required or deemed
provision shall control.

28

 

     IN
WITNESS WHEREOF, the parties hereto have caused this First Supplemental Indenture to be
duly executed by their respective officers hereunto duly authorized, all as of the day and year
first written above.

	 	 	 	 	 
	 	BIOMED REALTY, L.P., Issuer

 	 
	 	By:  	/s/ R. Kent Griffin
 	 
	 	 	Name:  	R. Kent Griffin 	 
	 	 	Title:  	President and Chief Operating Officer	 
	 	 	Address:  	
 17190 Bernardo Center Drive
 San Diego,
California 92128 	 
	 
	 	GUARANTOR:

BIOMED REALTY TRUST, INC.

 	 
	 	By:  	/s/ R. Kent Griffin
 	 
	 	 	Name:  	R. Kent Griffin 	 
	 	 	Title:  	President and Chief Operating Officer	 
	 	 	Address:  	
 17190 Bernardo Center Drive
 San Diego,
California 92128 	 
	 
	 	U.S. BANK NATIONAL
ASSOCIATION, as
Trustee

 	 
	 	By:  	/s/ Paula Oswald
 	 
	 	 	Name:  	Paula Oswald 	 
	 	 	Title:  	Vice President 	 
	 

 

EXHIBIT A

 

 

     THIS GLOBAL NOTE IS HELD BY THE DEPOSITORY (AS DEFINED IN THE INDENTURE GOVERNING THIS NOTE)
OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF THE BENEFICIAL OWNERS HEREOF, AND IS NOT TRANSFERABLE
TO ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT THAT (1) THE TRUSTEE MAY MAKE SUCH NOTATIONS HEREON AS
MAY BE REQUIRED PURSUANT TO SECTION 3.13 OF THE FIRST SUPPLEMENTAL INDENTURE, (2) THIS GLOBAL NOTE
MAY BE EXCHANGED IN WHOLE OR IN PART PURSUANT TO SECTION 3.13 OF THE FIRST SUPPLEMENTAL INDENTURE,
(3) THIS GLOBAL NOTE MAY BE DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT TO SECTION 2.12 OF
THE BASE INDENTURE AND (4) THIS GLOBAL NOTE MAY BE TRANSFERRED TO A SUCCESSOR DEPOSITORY WITH THE
PRIOR WRITTEN CONSENT OF THE COMPANY.

UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN DEFINITIVE FORM, THIS NOTE MAY
NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITORY TO A NOMINEE OF THE DEPOSITORY OR BY A
NOMINEE OF THE DEPOSITORY TO THE DEPOSITORY OR ANOTHER NOMINEE OF THE DEPOSITORY OR BY THE
DEPOSITORY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITORY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITORY.
UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY (55 WATER STREET, NEW YORK, NEW YORK) (“DTC”), TO THE COMPANY OR ITS AGENT FOR REGISTRATION
OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE &
CO. OR SUCH OTHER NAME AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT
IS MADE TO CEDE & CO. OR SUCH OTHER ENTITY AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF
DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS
WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

 

 

BIOMED REALTY, L.P.

3.85% SENIOR NOTES DUE 2016

No. [ ]

CUSIP No.: 09064A AF8

ISIN: US09064AAF84

$[   ]

     BioMed Realty, L.P., a Maryland limited partnership (herein called the “Company,” which term
includes any successor entity under the Indenture referred to on the reverse hereof), for value
received hereby promises to pay to Cede & Co., or its registered assigns, the principal sum of [ ]
($[ ]), or such lesser amount as is set forth in the Schedule of Exchanges of Interests in the
Global Note on the other side of this Note, on April 15, 2016 at the office or agency of the
Company maintained for that purpose in accordance with the terms of the Indenture, in such coin or
currency of the United States of America as at the time of payment shall be legal tender for the
payment of public and private debts, and to pay interest, semi-annually on April 15 and October 15
of each year, commencing October 15, 2011, on said principal sum at said office or agency, in like
coin or currency, at the rate per annum of 3.85%, from the April 15 or October 15, as the case may
be, next preceding the date of this Note to which interest has been paid or duly provided for,
unless no interest has been paid or duly provided for on the Notes, in which case from March 30,
2011 until payment of said principal sum has been made or duly provided for. The Company shall pay
interest to Holders of record of the Notes on the April 1 or October 1 preceding the applicable
April 15 or October 15 interest payment date, respectively, in accordance with the terms of the
Indenture. The Company shall pay interest on any Notes in certificated form by check mailed to the
address of the person entitled thereto as it appears in the register; provided, however, that a
Holder of any Notes in certificated form in the aggregate principal amount of more than $2.0
million may specify by written notice to the Company that it pay interest by wire transfer of
immediately available funds to the account specified by the Holder in such notice, or on any Global
Note by wire transfer of immediately available funds to the account of the Depository or its
nominee.

     The Company promises to pay interest on overdue principal, premium, if any, and (to the extent
that payment of such interest is enforceable under applicable law) interest at the rate of 1% per
annum above the rate borne by the Notes.

     Reference is made to the further provisions of this Note set forth on the reverse hereof and
the Indenture governing this Note. Such further provisions shall for all purposes have the same
effect as though fully set forth at this place.

     This Note shall not be valid or become obligatory for any purpose until the certificate of
authentication hereon shall have been signed manually by the Trustee or a duly authorized
authenticating agent under the Indenture.

 

 

IN WITNESS WHEREOF, the Company has caused this Note to be duly executed.

Dated:

	 	 	 	 	 
	 	BIOMED REALTY, L.P.

 	 
	 	By:  	BioMed Realty Trust, Inc.
 	 
	 	 	Its Sole General Partner 	 
	 	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

 

 

	 	 	 	 	 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

This is one of the Notes described in the within-named Indenture.

Dated:

	 	 	 	 	 
	 	U.S. Bank National Association, as Trustee

 	 
	 	By:  	 	 
	 	 	Authorized Signatory 	 
	 	 	 	 
	 

 

 

[FORM OF REVERSE SIDE OF NOTE]

BioMed Realty, L.P.

3.85% SENIOR NOTES DUE 2016

     This Note is one of a duly authorized issue of Securities of the Company, designated as its
3.85% Senior Notes due 2016 (herein called the “Notes”), issued under and pursuant to an Indenture
dated as of March 30, 2011 (herein called the “Base Indenture”), among the Company, the Guarantor
and U.S. Bank National Association, as trustee (herein called the “Trustee”), as supplemented by
the Supplemental Indenture No. 1, dated as of March 30, 2011 (herein called the “First Supplemental
Indenture,” and together with the Base Indenture, the “Indenture”), to which Indenture and any
indentures supplemental thereto reference is hereby made for a description of the rights,
limitations of rights, obligations, duties and immunities thereunder of the Trustee, the Company,
the Guarantor and the Holders of the Notes. Capitalized terms used but not otherwise defined in
this Note shall have the respective meanings ascribed thereto in the Indenture.

     If an Event of Default (other than an Event of Default specified in Sections 7.1(e), 7.1(f)
and 7.1(g) of the First Supplemental Indenture) occurs and is continuing, the principal of,
premium, if any, and accrued and unpaid interest on all Notes may be declared to be due and payable
by either the Trustee or the Holders of at least 25% in aggregate principal amount of the Notes
then outstanding, and, upon said declaration the same shall be immediately due and payable. If an
Event of Default specified in Sections 7.1(e), 7.1(f) and 7.1(g) of the First Supplemental
Indenture occurs, the principal of and premium, if any, and interest accrued and unpaid on all the
Notes shall be immediately and automatically due and payable without necessity of further action.

     The Indenture contains provisions permitting the Company and the Trustee, with the consent of
the Holders of not less than a majority in aggregate principal amount of the Notes at the time
outstanding, to execute supplemental indentures adding any provisions to or changing in any manner
or eliminating any of the provisions of the Indenture or of any supplemental indenture or modifying
in any manner the rights of the Holders of the Notes, subject to exceptions set forth in Section
9.2 of the Base Indenture. Subject to the provisions of the Indenture, the Holders of not less than
a majority in aggregate principal amount of the Notes at the time outstanding may, on behalf of the
Holders of all of the Notes, waive any past Default or Event of Default, subject to exceptions set
forth in the Indenture.

     No reference herein to the Indenture and no provision of this Note or of the Indenture shall
impair, as among the Company and the Holder of the Notes, the obligation of the Company, which is
absolute and unconditional, to pay the principal of, premium, if any, on and interest on this Note
at the place, at the respective times, at the rate and in the coin or currency prescribed herein
and in the Indenture.

     Interest on the Notes shall be computed on the basis of a 360-day year of twelve 30-day months.

     The Notes are issuable in fully registered book-entry form, without coupons, in denominations
of $2,000 and integral multiples of $1,000 in excess thereof. At the office or agency of the
Company referred to on the face hereof, and in the manner and subject to the limitations provided
in the Indenture, without payment of any service charge but with payment of a sum sufficient to
cover

 

 

any tax, assessment or other governmental charge that may be imposed in connection with any
registration or exchange of Notes, Notes may be exchanged for a like aggregate principal amount of
Notes of any other authorized denominations.

     The Company shall have the right to redeem the Notes under certain circumstances as set forth
in Article Four of the First Supplemental Indenture.

     The Notes are not subject to redemption through the operation of any sinking fund.

     Except as expressly provided in Article Five of the First Supplemental Indenture, no recourse
for the payment of the principal of or any premium or interest on this Note, or for any claim based
hereon or otherwise in respect hereof, and no recourse under or upon any obligation, covenant or
agreement of the Company in the Indenture or any supplemental indenture or in any Note, or because
of the creation of any indebtedness represented thereby, shall be had against any incorporator,
stockholder, limited partner, member, manager, employee, agent, officer, director or subsidiary, as
such, past, present or future, of the Guarantor, the Company or any of the Company’s Subsidiaries
or of any successor thereto, either directly or through the Guarantor, the Company or any of the
Company’s subsidiaries or of any successor thereto, whether by virtue of any constitution, statute
or rule of law, or by the enforcement of any assessment or penalty or otherwise; it being expressly
understood that all such liability is hereby expressly waived and released as a condition of, and
as consideration for, the execution of the Indenture and the issue of this Note.

 

 

ASSIGNMENT FORM

     To assign this Note, fill in the form below:

	 	 	 

	(I) or

(we) assign

and transfer

this Note to:
	 	 
	 

	 	 
	 

	 	(Insert assignee’s legal name)

 

(Insert assignee’s soc. sec. or tax I.D. no.)

 

(Print or type assignee’s name, address and zip code)

and

irrevocably

appoint ______________________________________________________________________________________________________________________________

to transfer this Note on the books of the Company. The agent may substitute another to act for him.

Date:                                                             

	 	 	 	 	 
	 	Your
 	 
	 	Signature:  	 	 
	 	(Sign exactly as your name appears on the face of this Note) 	 
	 	 	 	 
	 

Signature Guarantee*: ____________________

 

			
	*	 	Participant in a recognized Signature Guarantee Medallion Program (or other signature guarantor
acceptable to the Trustee).

 

 

SCHEDULE OF EXCHANGES OF INTERESTS IN THE GLOBAL NOTE

     The following exchanges of a part of this Global Note for an interest in another Global Note
or for a Definitive Note, or exchanges of a part of another Global Note or Definitive Note for an
interest in this Global Note, have been made:

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	Principal amount	 	 
	 	 	 	 	Amount of decrease in	 	Amount of increase in	 	at maturity of this	 	 
	 	 	 	 	principal amount at	 	principal amount at	 	Global Note following	 	Signature of authorized
	 	 	 	 	maturity of this Global	 	maturity of this Global	 	such decrease	 	officer of Trustee or
	Date of Exchange	 	Note	 	Note	 	(or increase)	 	Custodian

 

 

EXHIBIT B

 

 

NOTATION OF GUARANTEE

     The Guarantor listed below (hereinafter referred to as the “Guarantor,” which term includes
any successors or assigns under the Indenture, dated the date hereof, among the Guarantor, the
Company and U.S. Bank National Association, as trustee (the “Base Indenture”), as supplemented by
the Supplemental Indenture No. 1, dated the date hereof (the “First Supplemental Indenture” and,
together with the Base Indenture, the “Indenture”), has fully, unconditionally and absolutely
guaranteed on a senior basis the Guarantee Obligations (as defined in Section 5.1 of the First
Supplemental Indenture), which include (i) the due and punctual payment of the principal of,
premium, if any, and interest, if any, on the 3.85% Senior Notes due 2016 (the “Notes”) to which
this notation is affixed, whether at maturity, by acceleration, call for redemption or otherwise,
the due and punctual payment of interest on the overdue principal and premium, if any, and (to the
extent permitted by law) interest on any interest on the Notes, and the due and punctual
performance of all other obligations of the Company, to the Holders of the Notes or the Trustee all
in accordance with the terms set forth in Article Five of the First Supplemental Indenture, and
(ii) in case of any extension of time of payment or renewal of any Notes or any such other
obligations, that the same shall be promptly paid in full when due or performed in accordance with
the terms of the extension or renewal, whether at maturity, by acceleration, call for redemption or
otherwise.

     The obligations of such Guarantor to the Holders of Notes to which this notation is affixed
and to the Trustee pursuant to the Guarantee and the Indenture are expressly set forth in Article
Five of the First Supplemental Indenture and reference is hereby made to the Indenture for the
precise terms of the Guarantee.

     
No past, present or future director, officer, employee,
incorporator or stockholder (direct or indirect) of the Guarantor (or any such successor entity),
as such, shall have any liability for any obligations of the Guarantor under this Guarantee or the
Indenture or for any claim based on, in respect of, or by reason of, such obligations or their
creation.

     The Guarantor hereby waives diligence, presentment, demand of payment, filing of claims with a
court in the event of merger or bankruptcy of the Company, any right to require a proceeding first
against the Company, the benefit of discussion, protest or notice with respect to the Notes and all
demands whatsoever.

     This is a continuing Guarantee and shall remain in full force and effect and shall be binding
upon the Guarantor and its successors and assigns until full and final payment of all of the
Company’s obligations under the Notes and Indenture or until legally discharged in accordance with
the Indenture and shall inure to the benefit of the successors and assigns of the Trustee and the
Holders of the Notes, and, in the event of any transfer or assignment of rights by any Holder of
the Notes or the Trustee, the rights and privileges herein conferred upon that party shall
automatically extend to and be vested in such transferee or assignee, all subject to the terms and
conditions hereof. This is a Guarantee of payment and performance and not of collectability.

     
This Guarantee shall not be valid or obligatory for any purpose until the certificate of authentication
on the Note upon which this Guarantee is noted shall have been executed by the Trustee under the
Indenture by the manual or facsimile signature of one of its authorized officers.

     The obligations of the Guarantor under this Guarantee shall be limited to the extent necessary
to insure that it does not constitute a fraudulent conveyance under applicable law.

THE TERMS OF ARTICLE FIVE OF THE FIRST SUPPLEMENTAL INDENTURE ARE INCORPORATED HEREIN BY REFERENCE.

 

 

Capitalized terms used herein have the same meanings given in the Indenture unless otherwise
indicated.

	 	 	 	 	 
	 	BIOMED REALTY TRUST INC.

 	 
	Dated: 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Its:exv4w5

Exhibit 4.5

HUNTINGTON INGALLS INDUSTRIES SAVINGS PLAN

Effective as of March 31, 2011

 

 

TABLE OF CONTENTS

	 	 	 	 	 

	ARTICLE 1 INTRODUCTION
	 	 	1	 
	Section 1.01 Introduction
	 	 	1	 
	Section 1.02 Spin-Off
	 	 	1	 
	Section 1.03 Transfer of Assets and Liabilities, Service Credit
	 	 	1	 
	Section 1.04 Plan Mergers
	 	 	1	 
	 
	 	 	 	 
	ARTICLE 2 DEFINITIONS
	 	 	5	 
	Section 2.01 Account
	 	 	5	 
	Section 2.02 Active Participant
	 	 	5	 
	Section 2.03 Affiliated Companies
	 	 	5	 
	Section 2.04 After-Tax Contributions
	 	 	5	 
	Section 2.05 Annuity Starting Date
	 	 	5	 
	Section 2.06 Basic Contributions
	 	 	5	 
	Section 2.07 Board
	 	 	5	 
	Section 2.08 Break in Service Period
	 	 	5	 
	Section 2.09 Catch-Up Contributions
	 	 	6	 
	Section 2.10 Code
	 	 	6	 
	Section 2.11 Committee
	 	 	6	 
	Section 2.12 Company
	 	 	6	 
	Section 2.13 Company Matching Contributions
	 	 	6	 
	Section 2.14 Company Profit Sharing Contributions
	 	 	6	 
	Section 2.15 Compensation
	 	 	6	 
	Section 2.16 Compensation Committee
	 	 	6	 
	Section 2.17 Disabled
	 	 	6	 
	Section 2.18 Disqualified Person
	 	 	6	 
	Section 2.19 Dividends
	 	 	6	 
	Section 2.20 Eligible Employee
	 	 	6	 
	Section 2.21 Employee
	 	 	6	 
	Section 2.22 Employer
	 	 	7	 
	Section 2.23 ERISA
	 	 	7	 
	Section 2.24 ESOP
	 	 	7	 
	Section 2.25 ESOP Account
	 	 	7	 
	Section 2.26 5%-Owner
	 	 	7	 
	Section 2.27 Forfeiture
	 	 	7	 
	Section 2.28 Highly Compensated Participant
	 	 	7	 
	Section 2.29 Huntington Ingalls Industries Fund
	 	 	7	 
	Section 2.30 Inactive Participant
	 	 	7	 
	Section 2.31 Investment Committee
	 	 	7	 
	Section 2.32 Investment Manager
	 	 	7	 
	Section 2.33 IRS
	 	 	7	 
	Section 2.34 Leased Employee
	 	 	7	 
	Section 2.35 Leave of Absence
	 	 	8	 
	Section 2.36 Mandatory Commencement Date
	 	 	8	 
	Section 2.37 Merged Plans
	 	 	8	 

i

 

	 	 	 	 	 

	Section 2.38 Northrop Grumman Fund
	 	 	8	 
	Section 2.39 Participant
	 	 	8	 
	Section 2.40 Period of Service
	 	 	8	 
	Section 2.41 Plan
	 	 	9	 
	Section 2.42 Plan Year
	 	 	9	 
	Section 2.43 Qualifying Securities
	 	 	9	 
	Section 2.44 Retirement Account Contributions
	 	 	9	 
	Section 2.45 Roth Catch-Up Contributions
	 	 	9	 
	Section 2.46 Roth Contributions
	 	 	9	 
	Section 2.47 Service Contract Act Employee
	 	 	9	 
	Section 2.48 Special Contribution
	 	 	9	 
	Section 2.49 Spin-Off
	 	 	9	 
	Section 2.50 Supplemental Contributions
	 	 	10	 
	Section 2.51 Suspense Account
	 	 	10	 
	Section 2.52 Tax-Deferred Contributions
	 	 	10	 
	Section 2.53 Termination of Employment
	 	 	10	 
	Section 2.54 Trust or Trust Fund
	 	 	10	 
	Section 2.55 Trust Agreement
	 	 	10	 
	Section 2.56 Trustee
	 	 	10	 
	Section 2.57 Year of Service
	 	 	10	 
	 
	 	 	 	 
	ARTICLE 3 ELIGIBLE EMPLOYEES
	 	 	11	 
	Section 3.01 In General
	 	 	11	 
	Section 3.02 Eligible Employees
	 	 	11	 
	Section 3.03 Leased Employees
	 	 	11	 
	Section 3.04 Participants in Other Plans
	 	 	11	 
	 
	 	 	 	 
	ARTICLE 4 PARTICIPATION
	 	 	12	 
	Section 4.01 In General
	 	 	12	 
	Section 4.02 Transfers To Ineligible Positions
	 	 	12	 
	Section 4.03 Ineligible Positions
	 	 	12	 
	Section 4.04 Leaves of Absence
	 	 	12	 
	Section 4.05 Leased Employees
	 	 	12	 
	Section 4.06 Sub-Plans
	 	 	12	 
	Section 4.07 Committee Rules for Participation
	 	 	12	 
	 
	 	 	 	 
	ARTICLE 5 CONTRIBUTIONS
	 	 	14	 
	Section 5.01 Compensation.
	 	 	14	 
	Section 5.02 Compensation Limit
	 	 	14	 
	Section 5.03 Basic Contributions
	 	 	14	 
	Section 5.04 Supplemental Contributions
	 	 	14	 
	Section 5.05 Company Matching Contributions
	 	 	15	 
	Section 5.06 Company Profit Sharing Contributions
	 	 	15	 
	Section 5.07 Contribution Levels
	 	 	16	 
	Section 5.08 Contribution Elections
	 	 	16	 
	Section 5.09 Elections for Transferring Employees
	 	 	17	 
	Section 5.10 Changes In Participant Contributions
	 	 	17	 

ii

 

	 	 	 	 	 

	Section 5.11 Stopping Contributions
	 	 	17	 
	Section 5.12 Rollover Contributions
	 	 	17	 
	Section 5.13 Catch-Up Contributions
	 	 	19	 
	Section 5.14 Retirement Account Contributions
	 	 	20	 
	Section 5.15 Contributions for Certain Periods of Qualified Military Service
	 	 	21	 
	Section 5.16 Committee Rules
	 	 	22	 
	 
	 	 	 	 
	ARTICLE 6 LIMITATIONS ON CONTRIBUTIONS
	 	 	23	 
	Section 6.01 In General
	 	 	23	 
	Section 6.02 Dollar Limit on Participant Contributions
	 	 	23	 
	Section 6.03 Limits on Highly Compensated Participants
	 	 	24	 
	Section 6.04 Section 415 Limitations
	 	 	24	 
	Section 6.05 Committee Authority
	 	 	24	 
	 
	 	 	 	 
	ARTICLE 7 VESTING
	 	 	25	 
	Section 7.01 In General
	 	 	25	 
	Section 7.02 Vesting of Retirement Account Contributions
	 	 	25	 
	Section 7.03 Forfeitures
	 	 	25	 
	Section 7.04 Application of Forfeitures
	 	 	25	 
	Section 7.05 Reinstatement of Forfeitures
	 	 	25	 
	 
	 	 	 	 
	ARTICLE 8 ACCOUNTS
	 	 	26	 
	Section 8.01 Participant Accounts
	 	 	26	 
	Section 8.02 Valuation Of Accounts
	 	 	26	 
	Section 8.03 Benefits Not Assignable
	 	 	27	 
	 
	 	 	 	 
	ARTICLE 9 INVESTMENTS
	 	 	28	 
	Section 9.01 In General
	 	 	28	 
	Section 9.02 Northrop Grumman Fund
	 	 	28	 
	Section 9.03 Investment Elections and Transfers
	 	 	29	 
	Section 9.04 Committee Rules
	 	 	30	 
	 
	 	 	 	 
	ARTICLE 10 POST-EMPLOYMENT AND AGE 70-1/2 DISTRIBUTIONS
	 	 	31	 
	Section 10.01 In General
	 	 	31	 
	Section 10.02 Termination, Layoff and Leave
	 	 	31	 
	Section 10.03 Small Benefits
	 	 	31	 
	Section 10.04 Age 70-1/2 Distributions
	 	 	31	 
	Section 10.05 Immediate Rehires
	 	 	32	 
	Section 10.06 Delaying Payment for Accounts Over $1,000
	 	 	32	 
	Section 10.07 Commencement of Benefits
	 	 	32	 
	Section 10.08 Form of Distributions
	 	 	32	 
	Section 10.09 Time of Election
	 	 	33	 
	Section 10.10 Valuing Distributions
	 	 	33	 
	Section 10.11 Committee Rules
	 	 	33	 

iii

 

	 	 	 	 	 

	ARTICLE 11 WITHDRAWALS
	 	 	34	 
	Section 11.01 Eligibility for Withdrawals
	 	 	34	 
	Section 11.02 Hardship Withdrawals
	 	 	34	 
	Section 11.03 Age 59-1/2 Withdrawals
	 	 	36	 
	Section 11.04 Other In-Service Withdrawals
	 	 	36	 
	Section 11.05 Valuing Withdrawals
	 	 	36	 
	Section 11.06 Minimum Withdrawals
	 	 	36	 
	Section 11.07 Committee Rules
	 	 	36	 
	Section 11.08 Military Reservist Distributions
	 	 	37	 
	Section 11.09 Military Service Distributions
	 	 	37	 
	Section 11.10 Restriction on Withdrawals for Officers
	 	 	37	 
	 
	 	 	 	 
	ARTICLE 12 LOANS
	 	 	38	 
	Section 12.01 In General
	 	 	38	 
	Section 12.02 Former Employees
	 	 	38	 
	Section 12.03 Transferred Plan Loans
	 	 	38	 
	Section 12.04 Repayment Upon Death
	 	 	38	 
	Section 12.05 Restriction on Loans for Officers
	 	 	38	 
	 
	 	 	 	 
	ARTICLE 13 DEATH BENEFITS
	 	 	40	 
	Section 13.01 In General
	 	 	40	 
	Section 13.02 Method and Timing of Payment
	 	 	40	 
	Section 13.03 Form of Distributions
	 	 	40	 
	Section 13.04 Valuing Death Benefits
	 	 	40	 
	Section 13.05 Survivor Benefits Related to Military Service
	 	 	40	 
	Section 13.06 Committee Rules
	 	 	40	 
	 
	 	 	 	 
	ARTICLE 14 BENEFICIARIES
	 	 	41	 
	Section 14.01 In General
	 	 	41	 
	Section 14.02 Married Participants
	 	 	41	 
	Section 14.03 Determining Marital Status and Spouse
	 	 	41	 
	Section 14.04 Spousal Consent
	 	 	41	 
	Section 14.05 Explanation
	 	 	42	 
	Section 14.06 Failure to Designate Beneficiary
	 	 	42	 
	Section 14.07 Death of Beneficiary
	 	 	42	 
	Section 14.08 Committee Rules
	 	 	42	 
	 
	 	 	 	 
	ARTICLE 15 OTHER RULES ON DISTRIBUTIONS
	 	 	44	 
	Section 15.01 Lost Payee
	 	 	44	 
	Section 15.02 Disputes About Payee
	 	 	44	 
	Section 15.03 Administrative Delays
	 	 	44	 
	Section 15.04 Facility of Payment
	 	 	44	 
	Section 15.05 Incorrect Payment of Benefits
	 	 	44	 
	Section 15.06 Direct Rollover
	 	 	45	 
	Section 15.07 Annuity Starting Date
	 	 	46	 
	Section 15.08 Top Heavy Rules
	 	 	46	 
	Section 15.09 Claims and Issues
	 	 	46	 

iv

 

	 	 	 	 	 

	Section 15.10 Annuity Form of Distribution
	 	 	47	 
	 
	 	 	 	 
	ARTICLE 16 ADMINISTRATION
	 	 	48	 
	Section 16.01 In General
	 	 	48	 
	Section 16.02 The Committee
	 	 	48	 
	Section 16.03 Resignation of Committee Members
	 	 	48	 
	Section 16.04 Conduct of Business
	 	 	48	 
	Section 16.05 Quorum
	 	 	48	 
	Section 16.06 Voting
	 	 	48	 
	Section 16.07 Records and Reports of the Committee
	 	 	48	 
	Section 16.08 Powers of the Committee
	 	 	48	 
	Section 16.09 Allocation or Delegation of Duties and Responsibilities
	 	 	49	 
	Section 16.10 Procedure for the Allocation or Delegation of Fiduciary Duties
	 	 	50	 
	Section 16.11 Expenses of the Plan
	 	 	50	 
	Section 16.12 Indemnification
	 	 	51	 
	Section 16.13 Extensions of Time Periods
	 	 	51	 
	Section 16.14 Corrections Involving Participant Direction
	 	 	51	 
	Section 16.15 Claims and Appeals; Time Limitations; Exhaustion of Remedies
	 	 	51	 
	Section 16.16 Qualified Domestic Relations Orders
	 	 	51	 
	 
	 	 	 	 
	ARTICLE 17 MANAGEMENT OF FUNDS
	 	 	52	 
	Section 17.01 The Trust
	 	 	52	 
	Section 17.02 The Trustee
	 	 	52	 
	Section 17.03 Trust Agreement
	 	 	52	 
	Section 17.04 Huntington Ingalls Industries, Inc. Stock
	 	 	52	 
	Section 17.05 The Investment Committee
	 	 	52	 
	Section 17.06 Alternate Members
	 	 	52	 
	Section 17.07 Actions by the Investment Committee
	 	 	53	 
	Section 17.08 Investment Responsibilities
	 	 	53	 
	Section 17.09 Liability and Indemnity
	 	 	53	 
	 
	 	 	 	 
	ARTICLE 18 AMENDMENT AND TERMINATION
	 	 	55	 
	Section 18.01 Right to Amend the Plan
	 	 	55	 
	Section 18.02 Termination or Reduction
	 	 	55	 
	Section 18.03 Partial Terminations
	 	 	55	 
	 
	 	 	 	 
	ARTICLE 19 MERGERS
	 	 	56	 
	Section 19.01 Merger of Plans
	 	 	56	 
	 
	 	 	 	 
	ARTICLE 20 RETURN OF CONTRIBUTIONS
	 	 	57	 
	Section 20.01 In General
	 	 	57	 
	Section 20.02 Exceptions
	 	 	57	 

v

 

	 	 	 	 	 

	ARTICLE 21 MISCELLANEOUS
	 	 	58	 
	Section 21.01 Headings
	 	 	58	 
	Section 21.02 Construction
	 	 	58	 
	Section 21.03 No Employment Rights
	 	 	58	 
	Section 21.04 Limitation to Trust Fund
	 	 	58	 
	Section 21.05 Separability
	 	 	58	 
	 
	 	 	 	 
	APPENDIX A SECTION 415 LIMITS
	 	 	60	 
	Section A.01 In General
	 	 	60	 
	Section A.02 Reductions Among Defined Contribution Plans
	 	 	60	 
	Section A.03 Compensation
	 	 	60	 
	Section A.04 Annual Additions
	 	 	60	 
	Section A.05 Limitation Year
	 	 	61	 
	Section A.06 Special Aggregation Group
	 	 	61	 
	 
	 	 	 	 
	APPENDIX B TOP HEAVY PROVISIONS
	 	 	62	 
	Section B.01 Generally
	 	 	62	 
	Section B.02 Eligibility for Required Contributions
	 	 	62	 
	Section B.03 Required Contribution
	 	 	62	 
	Section B.04 Top-Heavy Minimum
	 	 	62	 
	Section B.05 Participants Under Defined Benefit Plans
	 	 	63	 
	Section B.06 Leased Employees
	 	 	64	 
	Section B.07 Determination of Top Heaviness
	 	 	64	 
	Section B.08 Calculation of Top-Heavy Ratios
	 	 	64	 
	Section B.09 Cumulative Accounts and Cumulative Accrued Benefits
	 	 	64	 
	Section B.10 Other Definitions
	 	 	66	 
	Section B.11 Affiliated Companies
	 	 	66	 
	Section B.12 Aggregation Group
	 	 	67	 
	Section B.13 Compensation
	 	 	67	 
	Section B.14 Determination Date
	 	 	67	 
	Section B.15 Hour of Service
	 	 	67	 
	Section B.16 Key Employee
	 	 	68	 
	Section B.17 Limitation Year
	 	 	69	 
	Section B.18 Nonintegrated
	 	 	69	 
	Section B.19 Special Member
	 	 	69	 
	Section B.20 Test Period
	 	 	69	 
	 
	 	 	 	 
	APPENDIX C THE 401(K) AND 401(M) TESTS
	 	 	70	 
	Section C.01 In General
	 	 	70	 
	Section C.02 The 401(k) Test
	 	 	70	 
	Section C.03 K Percentage
	 	 	70	 
	Section C.04 401(k) Limit
	 	 	71	 
	Section C.05 Highly Compensated Individual K Percentage Limit
	 	 	72	 
	Section C.06 Excess Tax-Deferred Contributions
	 	 	72	 
	Section C.07 Treatment of Excess Tax-Deferred Contributions and/or
Roth Contributions
	 	 	72	 

vi

 

	 	 	 	 	 

	Section C.08 The 401(m) Test
	 	 	73	 
	Section C.09 A&C Percentage
	 	 	73	 
	Section C.10 Highly Compensated Group Contribution Limit
	 	 	75	 
	Section C.11 Highly Compensated Individual A&C Limit
	 	 	75	 
	Section C.12 Excess A&C Contributions
	 	 	76	 
	Section C.13 Treatment of Excess A&C Contributions
	 	 	76	 
	Section C.14 Reductions During the Year
	 	 	77	 
	Section C.15 Unmatched Company Contributions
	 	 	77	 
	Section C.16 Employee Stock Ownership Plan
	 	 	77	 
	Section C.17 Compensation
	 	 	77	 
	 
	 	 	 	 
	APPENDIX D HIGHLY COMPENSATED PARTICIPANTS
	 	 	78	 
	Section D.01 In General
	 	 	78	 
	Section D.02 Highly Compensated Participant
	 	 	78	 
	Section D.03 5%-Owner Test
	 	 	78	 
	Section D.04 Preceding Plan Year Compensation Test
	 	 	78	 
	Section D.05 5%-Owner
	 	 	78	 
	Section D.06 Nonresident Aliens
	 	 	78	 
	Section D.07 Compensation
	 	 	78	 
	 
	 	 	 	 
	APPENDIX E MERGED MONEY PURCHASE ACCOUNTS
	 	 	80	 
	 
	 	 	 	 
	ARTICLE E1 IN GENERAL
	 	 	80	 
	Section E1.01 Covered Accounts
	 	 	80	 
	Section E1.02 Other Provisions Applicable
	 	 	81	 
	 
	 	 	 	 
	ARTICLE E2 DEFINITIONS
	 	 	82	 
	Section E2.01 In General
	 	 	82	 
	 
	 	 	 	 
	ARTICLE E3 IN-SERVICE WITHDRAWALS
	 	 	83	 
	Section E3.01 In General
	 	 	83	 
	Section E3.02 TASC Plan Money Purchase Contributions
	 	 	83	 
	Section E3.03 Committee Rules
	 	 	83	 
	 
	 	 	 	 
	ARTICLE E4 DISTRIBUTIONS
	 	 	84	 
	Section E4.01 In General
	 	 	84	 
	Section E4.02 Small Benefits
	 	 	84	 
	Section E4.03 Lump Sums
	 	 	84	 
	Section E4.04 Married Participants
	 	 	84	 
	Section E4.05 Unmarried Participants
	 	 	84	 
	Section E4.06 Joint And Survivor Option
	 	 	84	 
	Section E4.07 Life Annuity Option
	 	 	84	 
	Section E4.08 Determining Marital Status and Spouse
	 	 	84	 
	Section E4.09 Spousal Consent
	 	 	84	 
	Section E4.10 Explanation
	 	 	85	 
	Section E4.11 Deferral of Commencement
	 	 	85	 
	Section E4.12 Minimum Distribution Requirements
	 	 	85	 

vii

 

	 	 	 	 	 

	Section E4.13 Committee Rules
	 	 	87	 
	 
	 	 	 	 
	ARTICLE E5 DEATH BENEFITS
	 	 	88	 
	Section E5.01 In General
	 	 	88	 
	Section E5.02 Small Benefits
	 	 	88	 
	Section E5.03 Married Participants
	 	 	88	 
	Section E5.04 Nonspouse Beneficiaries
	 	 	88	 
	Section E5.05 Spouse Beneficiaries
	 	 	88	 
	Section E5.06 Commencement
	 	 	88	 
	Section E5.07 Determining Marital Status and Spouse
	 	 	89	 
	Section E5.08 Beneficiaries
	 	 	89	 
	Section E5.09 Valuing Death Benefits
	 	 	89	 
	Section E5.10 Minimum Distribution Requirements
	 	 	89	 
	Section E5.11 Committee Rules
	 	 	90	 
	 
	 	 	 	 
	ARTICLE E6 FORM OF PAYMENTS
	 	 	91	 
	Section E6.01 In General
	 	 	91	 
	 
	 	 	 	 
	APPENDIX F MERGED NON-MONEY PURCHASE PLAN ACCOUNTS
	 	 	92	 
	 
	 	 	 	 
	ARTICLE F1 IN GENERAL
	 	 	92	 
	Section F1.01 Covered Accounts
	 	 	92	 
	Section F1.02 Other Provisions Applicable
	 	 	98	 
	 
	 	 	 	 
	ARTICLE F2 DEFINITIONS
	 	 	99	 
	Section F2.01 In General
	 	 	99	 
	 
	 	 	 	 
	ARTICLE F3 IN-SERVICE WITHDRAWALS
	 	 	100	 
	Section F3.01 In General
	 	 	100	 
	Section F3.02 EIP and REIP Account Withdrawals
	 	 	100	 
	Section F3.03 NGR&S and GPS Account Withdrawals
	 	 	100	 
	Section F3.04 O&M and IAM Account Withdrawals
	 	 	100	 
	Section F3.05 GSSC PSP Account Withdrawals
	 	 	100	 
	Section F3.06 CAD Account Withdrawals
	 	 	101	 
	Section F3.07 Logicon Account Withdrawals
	 	 	101	 
	Section F3.08 INRI Account Withdrawals
	 	 	101	 
	Section F3.09 ISA Hourly Account Withdrawals
	 	 	101	 
	Section F3.10 Naval Plan Account Withdrawals
	 	 	102	 
	Section F3.11 Geodynamics Plan Account Withdrawals
	 	 	102	 
	Section F3.12 Xetron RISP Account Withdrawals
	 	 	102	 
	Section F3.13 TASC Plan Account Withdrawals
	 	 	102	 
	Section F3.14 TSC Plan Account Withdrawals
	 	 	102	 
	Section F3.15 S & MS Account Withdrawals
	 	 	102	 
	Section F3.16 Xontech Account Withdrawals
	 	 	103	 
	 
	 	 	 	 
	ARTICLE F4 DISTRIBUTIONS
	 	 	104	 
	Section F4.01 In General
	 	 	104	 

viii

 

	 	 	 	 	 

	Section F4.02 Small Benefits
	 	 	104	 
	Section F4.03 Integic Corporation 401(k) Plan
	 	 	104	 
	 
	 	 	 	 
	ARTICLE F5 DEATH BENEFITS
	 	 	105	 
	Section F5.01 In General
	 	 	105	 
	Section F5.02 Small Benefits
	 	 	105	 
	 
	 	 	 	 
	ARTICLE F6 FORM OF PAYMENTS
	 	 	106	 
	Section F6.01 In General
	 	 	106	 
	 
	 	 	 	 
	APPENDIX G VETERANS’ REEMPLOYMENT RIGHTS
	 	 	107	 
	Section G.01 In General
	 	 	107	 
	Section G.02 Service Credit
	 	 	107	 
	Section G.03 Make-Up Participant Contributions
	 	 	107	 
	Section G.04 Make-Up Company Contributions.
	 	 	107	 
	Section G.05 Qualified Veteran
	 	 	108	 
	Section G.06 Qualified Military Service
	 	 	108	 
	Section G.07 Maximum Make-Up Amount
	 	 	108	 
	Section G.08 Make-Up Period
	 	 	108	 
	 
	 	 	 	 
	APPENDIX H EMPLOYEE STOCK OWNERSHIP PLAN
	 	 	109	 
	 
	 	 	 	 
	ARTICLE H1 GENERAL PROVISIONS
	 	 	109	 
	Section H1.01 Single Plan
	 	 	109	 
	Section H1.02 Application of Savings Plan Provisions
	 	 	109	 
	Section H1.03 Form of Contributions
	 	 	109	 
	Section H1.04 Vesting
	 	 	109	 
	Section H1.05 Forfeitures
	 	 	109	 
	Section H1.06 Section 415 Limitations
	 	 	109	 
	 
	 	 	 	 
	ARTICLE H2 LOAN REQUIREMENTS
	 	 	110	 
	Section H2.01 In General
	 	 	110	 
	Section H2.02 Use of Loan Proceeds
	 	 	110	 
	Section H2.03 Price of Securities
	 	 	110	 
	Section H2.04 Suspense Account
	 	 	110	 
	Section H2.05 Restrictions on Securities
	 	 	110	 
	Section H2.06 Liability and Collateral
	 	 	110	 
	Section H2.07 Release of Collateral
	 	 	111	 
	Section H2.08 Payments
	 	 	111	 
	Section H2.09 Separate Accounting
	 	 	111	 
	Section H2.10 Default
	 	 	111	 
	Section H2.11 Interest Rate
	 	 	111	 
	Section H2.12 Loan Term
	 	 	111	 
	 
	 	 	 	 
	ARTICLE H3 LOAN REPAYMENTS
	 	 	112	 
	Section H3.01 Ordering Rule
	 	 	112	 
	Section H3.02 Special Contributions
	 	 	112	 

ix

 

	 	 	 	 	 

	Section H3.03 Use of Qualifying Securities
	 	 	112	 
	 
	 	 	 	 
	ARTICLE H4 SUSPENSE ACCOUNT
	 	 	113	 
	Section H4.01 Application
	 	 	113	 
	Section H4.02 Suspense Account
	 	 	113	 
	Section H4.03 Income
	 	 	113	 
	Section H4.04 Rights to Suspense Account Amounts
	 	 	113	 
	Section H4.05 General Rule for Release from Suspense
	 	 	113	 
	Section H4.06 Special Election
	 	 	113	 
	 
	 	 	 	 
	ARTICLE H5 COMPANY CONTRIBUTIONS
	 	 	115	 
	Section H5.01 Special Company Contributions
	 	 	115	 
	Section H5.02 Allocation of Special Contributions
	 	 	115	 
	Section H5.03 Section 415 Limitations
	 	 	115	 
	 
	 	 	 	 
	ARTICLE H6 DIVIDENDS
	 	 	116	 
	Section H6.01 In General
	 	 	116	 
	Section H6.02 Allocation of Dividends
	 	 	116	 
	Section H6.03 Loan Repayments
	 	 	116	 
	Section H6.04 Excess Dividends
	 	 	116	 
	Section H6.05 Conditioned on Deductibility
	 	 	116	 
	Section H6.06 Direct Distribution of Dividends
	 	 	116	 
	Section H6.07 Meaning of “Participant”
	 	 	117	 
	 
	 	 	 	 
	ARTICLE H7 ALLOCATIONS OF SUSPENSE ACCOUNT AMOUNTS
	 	 	118	 
	Section H7.01 In General
	 	 	118	 
	Section H7.02 Release from Suspense Account
	 	 	118	 
	Section H7.03 Allocation of Amounts Attributable to Special Contributions
	 	 	119	 
	Section H7.04 Release of Collateral
	 	 	119	 
	Section H7.05 Section 415 Limits
	 	 	119	 
	 
	 	 	 	 
	ARTICLE H8 VOTING RIGHTS AND TENDER OFFERS
	 	 	120	 
	Section H8.01 In General
	 	 	120	 
	Section H8.02 Voting of Qualifying Securities
	 	 	120	 
	Section H8.03 Tender Offers, etc
	 	 	121	 
	 
	 	 	 	 
	ARTICLE H9 INVESTMENTS
	 	 	125	 
	Section H9.01 Huntington Ingalls Industries Fund
	 	 	125	 
	Section H9.02 Primary Investment
	 	 	125	 
	 
	 	 	 	 
	ARTICLE H10 DIVERSIFICATION
	 	 	126	 
	Section H10.01 In General
	 	 	126	 
	Section H10.02 Eligibility
	 	 	126	 
	Section H10.03 Diversification Election
	 	 	126	 
	Section H10.04 Timing of Election
	 	 	126	 

x

 

	 	 	 	 	 

	ARTICLE H11 DISTRIBUTIONS
	 	 	127	 
	Section H11.01 Application
	 	 	127	 
	Section H11.02 Timing of Distributions
	 	 	127	 
	Section H11.03 Exception for Financed Securities
	 	 	127	 
	Section H11.04 Form of Distributions
	 	 	127	 
	Section H11.05 Condition of Distributions
	 	 	127	 
	 
	 	 	 	 
	ARTICLE H12 TERMINATION
	 	 	128	 
	Section H12.01 Termination
	 	 	128	 
	 
	 	 	 	 
	APPENDIX I HUNTINGTON INGALLS INDUSTRIES TRANSFER PROVISIONS
	 	 	129	 
	 
	 	 	 	 
	ARTICLE I1 APPLICATION AND DEFINITIONS
	 	 	129	 
	Section I1.01 Application
	 	 	129	 
	Section I1.02 Definitions
	 	 	129	 
	 
	 	 	 	 
	ARTICLE I2 TRANSFERS AND REHIRES
	 	 	130	 
	Section I2.01 Service Credit
	 	 	130	 
	Section I2.02 Former Employees
	 	 	130	 
	Section I2.03 Continuation of Elections
	 	 	130	 
	Section I2.04 Transfers to the Northrop Grumman Group
	 	 	130	 
	 
	 	 	 	 
	ARTICLE I3 PLAN LIMITS AND NON-DISCRIMINATION TESTING
	 	 	131	 
	Section I3.01 Code Section 401(a)(17) Limits
	 	 	131	 
	Section I3.02 Code Section 415 Limits
	 	 	131	 
	Section I3.03 Code Section 402(g) Limits
	 	 	131	 
	Section I3.04 Non-Discrimination Testing
	 	 	131	 
	 
	 	 	 	 
	EXHIBIT A COVERAGE PARTICIPATING EMPLOYERS
	 	 	132	 

xi

 

ARTICLE 1

Introduction

     Section 1.01 Introduction. Effective as of March 31, 2011, Huntington Ingalls
Industries, Inc. (the “Company”) established the Huntington Ingalls Industries Savings Plan (the
“Plan”), a profit-sharing plan and stock bonus plan that includes an employee stock ownership plan
and provides for pre-tax and after-tax participant contributions and company matching and
profit-sharing contributions. The Plan is intended to be qualified under Section 401(a) and to
meet the requirements of Section 401(k) of the Internal Revenue Code of 1986, as amended, and is to
be interpreted and administered accordingly. The Plan also is intended to be an “ERISA section
404(c) plan” as described in ERISA Section 404(c) and the regulations thereunder. Plan language
concerning the requirements for tax-qualified plans under the Code or ERISA — or the regulations
or rulings under the Code or ERISA — is to be interpreted only to implement the statute,
regulation or ruling, unless Plan language explicitly and clearly provides additional rights or
benefits. The Plan is established and maintained by Huntington Ingalls Industries, Inc. under EIN
90-0607005.

     Section 1.02 Spin-Off. In connection with Northrop Grumman Corporation’s (“Northrop
Grumman”) spin-off of its shipbuilding business, Northrop Grumman underwent an internal
reorganization and incorporated the Company on August 4, 2010 as an indirect subsidiary of Northrop
Grumman. The Company was spun-off effective March 31, 2011 (the “Spin-Off”) pursuant to a
Separation and Distribution Agreement, dated March 31, 2011. Effective as of the Spin-Off, the
Company is an independent, publicly traded corporation which owns and operates the shipbuilding
business previously owned and operated by Northrop Grumman (through its direct and indirect
subsidiaries). Prior to the Spin-Off, Northrop Grumman’s EIN was 95-4840775. After the Spin-Off,
Northrop Grumman’s EIN will be 80-0640649.

     Section 1.03 Transfer of Assets and Liabilities, Service Credit. Coincident with the
Spin-Off and as described in that certain Employee Matters Agreement dated March 31, 2011, the
Company and its affiliates established a number of qualified defined contribution pension plans
that are substantially similar to those plans maintained by Northrop Grumman. Certain employees,
former employees and retirees identified as of the Spin-Off (“HII Participants”) had their account
balances under the Northrop Grumman Savings Plan transferred to this Plan. The assets and
liabilities attributable to these HII Participants are transferred to this Plan in accordance with
Code Section 414(l) and ERISA Section 208.

     Section 1.04 Plan Mergers. The following plans have merged into this Plan or into the
Northrop Grumman Savings Plan prior to the Spin-Off, effective as of the dates provided in the
table below.

     (a) Amounts merged into this Plan or into the Northrop Grumman Savings Plan prior to
the Spin-Off from the merged plans are governed by the terms of this Plan.

     (b) Effective as of the dates below, Accounts are established for Employees who, before
the merger, had account balances under the Merged Plans. These Employees may not be Active
Participants under this Plan unless they become Active Participants by

 

 

virtue of being hired into a covered position with an Employer. So long as they remain
Employees of Affiliated Companies, Inactive Participants are able to change investment
options, borrow under Article 12, and make in-service withdrawals.

	 	 	 
	 	 	Merger Effective
	Name of Merged Plans	 	Dates
	Employee Investment Plan of Grumman Corporation (including the
merger of the Grumman Corporation Employee Stock Ownership
Plan into the Northrop Grumman Corporation Employee Stock
Ownership Plan)

	 	August 1, 1995
	 
	 	 
	Northrop Grumman Retirement and Savings Plan

	 	January 1, 1998
	 
	 	 
	Grumman Technical Services, Inc. Aircraft Services Unit
(Operations and Maintenance) Capital Accumulation Plan,
including the Grumman Technical Services, Inc. 5% Capital
Accumulation Plan

	 	April 1, 1998
	 
	 	 
	Grumman Technical Services, Inc. Capital Accumulation and
Savings Plan for the Employees Represented by the
International Association of Machinists and Aerospace Workers,
AFL-CIO

	 	April 1, 1998
	 
	 	 
	Grumman Technical Services, Inc. Represented Employee
Investment Plan

	 	April 1, 1998
	 
	 	 
	Grumman Technical Services, Inc. Capital Accumulation Plan SPC
— Represented Employees

	 	April 1, 1998
	 
	 	 
	Grumman St. Augustine Corporation Capital Accumulation Plan

	 	April 1, 1998
	 
	 	 
	Grumman Aerospace Corporation Electronics Systems Division
(Salisbury, Maryland Operations) Capital Accumulation Plan

	 	April 1, 1998
	 
	 	 
	Georgia Production Site Retirement and Savings Plan

	 	April 1, 1998
	 
	 	 
	Grumman Systems Support Corporation Money Purchase Pension
Plan, including frozen accounts from the former Grumman
Systems Support Corporation Employees Profit Sharing Plan

	 	July 1, 1998
	 
	 	 
	Northrop Grumman Commercial Aircraft Division Salaried Savings
and Investment Plan

	 	September 1, 1999
	 
	 	 
	Employee Salary Deferral Plan of Logicon, Inc.

	 	July 28, 2000
	 
	 	 
	Employees Profit Sharing Plan of Logicon, Inc., which includes
the Logicon R&D Associates Employees Profit Sharing Plan

	 	July 28, 2000
	 
	 	 
	Employees Profit Sharing Plan of Logicon Eagle Technology, Inc.

	 	July 28, 2000
	 
	 	 
	Logicon Syscon, Inc. Profit Sharing Plan

	 	July 28, 2000
	 
	 	 
	INRI 401(k) and Profit Sharing Plan

	 	July 28, 2000

2

 

	 	 	 
	 	 	Merger Effective
	Name of Merged Plans	 	Dates
	INRI Money Purchase Plan

	 	July 28, 2000
	 
	 	 
	Northrop Grumman Integrated Systems & Aerostructures (ISA)
Sector Represented Employee Savings and Investment Plan (only
for ISA Plan participants who (i) were “Returned Business
Employees” or (ii) were not “Business Employees” or “Retired
Business Employees” on the “Closing Date” or “Applicable
Transfer Date,” as the case may be, as defined in the June 9,
2000 Asset Purchase Agreement between Northrop Grumman
Corporation and VAC Acquisition 

Corp. II)

	 	December 15, 2000
	 
	 	 
	Northrop Grumman Naval Systems Division — Cleveland Facility
Salaried Employees 401(k) Savings Plan

	 	February 23, 2001
	 
	 	 
	Northrop Grumman Naval Systems Division — Cleveland Facility
Hourly Employees 401(k) Savings Plan

	 	February 23, 2001
	 
	 	 
	Northrop Grumman Electronic Sensors & Systems Sector Savings
and Investment Plan

	 	April 12, 2001
	 
	 	 
	Employees’ Profit Sharing Plan of Logicon Geodynamics, Inc.

	 	June 22, 2001
	 
	 	 
	Data Procurement Corporation, Inc. 401(k) Retirement Plan

	 	August 17, 2001
	 
	 	 
	Page Communications Engineers, Inc. Employees Trust Fund

	 	September 1, 2001
	 
	 	 
	Northrop Grumman Norden Systems Employee Savings Plan

	 	September 27, 2001
	 
	 	 
	Xetron Corporation Money Purchase Pension Plan

	 	September 27, 2001
	 
	 	 
	Xetron Corporation Retirement Income/Savings Plan

	 	September 27, 2001
	 
	 	 
	Perceptics Corporation 401(k) Retirement Plan

	 	September 27, 2002
	 
	 	 
	Northrop Grumman Norden Systems Represented Employee Savings 

Plan

	 	October 17, 2002
	 
	 	 
	TASC Profit Sharing and Savings Plan

	 	March 28, 2003
	 
	 	 
	TASC Services Corporation Employee Savings Plan

	 	March 28, 2003
	 
	 	 
	Newport News Shipbuilding, Inc. 401(k) Investment Plan for
Salaried Employees

	 	January 1, 2004
	 
	 	 
	Continental Maritime Employee Stock Ownership Plan

	 	January 1, 2004
	 
	 	 
	Northrop Grumman Electronic Systems Union Represented
Employees Savings and Investment Plan

	 	October 22, 2004
	 
	 	 
	Northrop Grumman Space & Mission Systems Corp. Savings Plan

	 	December 10, 2004

3

 

	 	 	 
	 	 	Merger Effective
	Name of Merged Plans	 	Dates
	Comptek Amherst Systems, Inc. 401(k) Plan

	 	November 18, 2005
	 
	 	 
	PRB Associates, Inc. 401(k) Plan

	 	November 18, 2005
	 
	 	 
	PRC Inc. Retirement Savings Program

	 	December 1, 2007
	 
	 	 
	Redstone Arsenal Retirement Savings Plan

	 	March 31, 2008
	 
	 	 
	Illgen Simulation Technologies, Inc. 401(k) Savings Plan

	 	June 20, 2008
	 
	 	 
	Northrop Grumman Mobile Access Software, Inc. 401(k) Plan

	 	June 20, 2008
	 
	 	 
	Xontech, Inc. Salary Savings and Profit Sharing Plan

	 	October 16, 2008
	 
	 	 
	Xinetics Inc. 401(k) Plan

	 	November 4, 2008
	 
	 	 
	Fibersense Technology Corporation 401(k) Plan

	 	May 6, 2009
	 
	 	 
	Integic Corporation 401(k) Plan

	 	May 20, 2009
	 
	 	 
	3001, Inc. 401(k) Plan

	 	July 1, 2010
	 
	 	 
	Comptek Research Retirement Savings Plan

	 	July 8, 2010
	 
	 	 
	Litton Marine Systems, Inc. 401(k) Savings Plan

	 	July 15, 2010

4

 

ARTICLE 2

Definitions

     Section 2.01 Account. The Account set up for each Participant. See Article 8.

     Section 2.02 Active Participant. An Employee who is currently eligible to make or
receive contributions under the Plan.

     Section 2.03 Affiliated Companies. Each entity that satisfies the conditions of any
of subsections (a) through (d), but only during such periods that such entity satisfies the
conditions of any of subsections (a) through (d):

     (a) Any corporation that is included in a controlled group of corporations, within the
meaning of Code Section 414(b), that includes the Company;

     (b) Any trade or business that is under common control with the Company within the
meaning of Code Section 414(c);

     (c) Any member of an affiliated service group, within the meaning of Code Section
414(m), that includes the Company; and

     (d) Any entity required to be included under Code Section 414(o).

     Section 2.04 After-Tax Contributions. After-tax Participant contributions whether
Basic or Supplemental. See Sections 5.03 and 5.04.

     Section 2.05 Annuity Starting Date. This term is defined in Section 15.07.

     Section 2.06 Basic Contributions. Participant contributions whether After-Tax, Roth
or Tax-Deferred that are eligible for a Company Matching Contribution. See Section 5.03.

     Section 2.07 Board. The Board of Directors of the Company.

     Section 2.08 Break in Service Period. Break-in-Service Period shall mean a period of
severance of at least 12 consecutive months commencing on the day after the Employee’s Termination
of Employment or the day that marks the first anniversary of an absence due to disability,
vacation, leave, layoff or similar reason, and ending on the date the Employee recommences
employment with an Employer. For purposes of determining whether or not an Employee has incurred a
Break in Service Period, an Employee’s period of severance shall be deemed to commence on the
second anniversary of the Employee’s absence on account of:

     (a) Absence by an individual by reason of the individual’s pregnancy;

     (b) Absence by an individual by reason of the birth of a child of the individual;

     (c) Absence by an individual by reason of the placement of a child with the individual
in connection with the adoption of such child by the individual; or

5

 

     (d) Absence by an individual for purposes of caring for such a child for a period
immediately following such birth or placement.

Solely for the purposes of determining whether an Employee has incurred a Break in Service Period,
the Employee shall be credited with service during a period of leave for the birth, adoption or
placement of a child, to care for a spouse or an immediate family member with a serious illness or
for the Employee’s own illness to the extent required by the Family and Medical Leave Act of 1993
and applicable regulations thereunder.

     Section 2.09 Catch-Up Contributions. This term is defined in Section 5.13.

     Section 2.10 Code. The Internal Revenue Code of 1986, as amended.

     Section 2.11 Committee. The administrator of the Plan as described in Article 16 or
its delegate(s).

     Section 2.12 Company. Huntington Ingalls Industries, Inc.

     Section 2.13 Company Matching Contributions. Employer contributions that match
Participants’ Basic Contributions. See Section 5.05.

     Section 2.14 Company Profit Sharing Contributions. Employer contributions under
Section 5.06 for which no Participant contributions are required.

     Section 2.15 Compensation. This term is defined for most contribution purposes in
Section 5.01.

     Section 2.16 Compensation Committee. The Compensation and Management Development
Committee of the Board.

     Section 2.17 Disabled. Total disability as determined by the Social Security
Administration.

     Section 2.18 Disqualified Person. A person who is a “disqualified person” within the
meaning of Code Section 4975(e)(2).

     Section 2.19 Dividends. Dividends on Qualifying Securities whether held in the
Suspense Account or allocated to Participants’ ESOP Accounts.

     Section 2.20 Eligible Employee. Any Employee who is eligible to participate in the
Plan in accordance with Article 3.

     Section 2.21 Employee. An individual is an Employee only if he or she is reported on
the payroll records of an Affiliated Company as a common law employee. This term does not include
any other common law employee or any Leased Employee. In particular, it is expressly intended that
an individual not treated as a common law employee by the Affiliated Companies on their payroll
records is excluded from Plan participation even if a court or administrative agency determines
that the individual is a common law employee.

6

 

     Section 2.22 Employer. The Company and any Affiliated Company that adopts the Plan
with the Board’s permission.

     Section 2.23 ERISA. The Employee Retirement Income Security Act of 1974, as amended.

     Section 2.24 ESOP. The Huntington Ingalls Industries, Inc. Employee Stock Ownership Plan, a
part of the Huntington Ingalls Industries Savings Plan.

     Section 2.25 ESOP Account. A subaccount of a Participant’s Account under the Plan to
account for allocations, earnings and distributions with respect to the Participant under the ESOP.

     Section 2.26 5%-Owner. This term is defined in Section D.05.

     Section 2.27 Forfeiture. The term Forfeiture shall refer to the nonvested portion of
a Participant’s account that is forfeited under Section 7.03 after the Participant’s Termination of
Employment.

     Section 2.28 Highly Compensated Participant. This term is defined in Section D.02.

     Section 2.29 Huntington Ingalls Industries Fund. This is described under the ESOP.

     Section 2.30 Inactive Participant. A Participant who is not currently eligible to
make or receive contributions under the Plan. See Article 4.

     Section 2.31 Investment Committee. The committee charged generally with investment
responsibility as described in Article 17.

     Section 2.32 Investment Manager.

     (a) An Investment Manager is:

     (1) An Investment Manager as defined under ERISA; or

     (2) The Investment Committee.

     (b) An Investment Manager is a fiduciary under the Plan.

     Section 2.33 IRS. The Internal Revenue Service, United States Department of the
Treasury.

     Section 2.34 Leased Employee. Any individual who is not an Employee but provides
services to an Affiliated Company (or an Affiliated Company and “related persons” under Code
Section 414(n)(6)) on a substantially full-time basis for a period of at least one year, under an
agreement between an Affiliated Company and any other person and performed under the primary
direction or control of an Affiliated Company. In the event that any Leased Employee subsequently
becomes an Eligible Employee, then unless the Plan is otherwise excluded by applicable Treasury
Regulations from the requirements of Code Section 414(n), the total period

7

 

that such former Leased Employee provided services to the Company or an Affiliated Company
shall be treated under the Plan, for participation eligibility and vesting purposes as though he or
she had been an Employee of the Employer.

     Section 2.35 Leave of Absence. An approved leave granted an Employee by an Affiliated
Company in accordance with applicable policies of the Affiliated Company for a temporary or
indefinite period after which it is expected that the Employee will return to employment with the
Affiliated Companies.

     Section 2.36 Mandatory Commencement Date. The April 1 of the calendar year following
the year in which a Participant attains age 70-1/2.

     Section 2.37 Merged Plans. The qualified retirement plans with accounts that have
merged into this Plan or that had been merged into the Northrop Grumman Savings Plan prior to March
31, 2011 to the extent assets attributable to those plans were transferred to this Plan. The
Merged Plans are listed in Section 1.04.

     Section 2.38 Northrop Grumman Fund. The investment fund the sole purpose of which is
to invest in Northrop Grumman Corporation common stock, other than cash or short-term investments
necessary to fund participant transactions or to pay Plan expenses. The Northrop Grumman Fund will
be maintained under the Plan subject to the terms of Section 9.02 of the Plan.

     Section 2.39 Participant. Any Employee or former Employee who has an account balance
under the Plan.

     Section 2.40 Period of Service.

     (a) In General. The term Period of Service refers to the period of time
beginning on the day the Employee commences employment with the Company or an Affiliated
Company and ending on the earlier of (1) Termination of Employment or (2) the day that marks
the first anniversary of an absence due to disability, vacation, leave, layoff or similar
reason (except, in the case of absence due to maternity or paternity leave, the second
anniversary of the date the individual is first absent). All individual Periods of Service
under the Plan shall be aggregated in determining an Employee’s total Period of Service.

     (b) Periods of Severance Treated as Periods of Service. In determining a
Participant’s Period of Service, the following periods of severance shall be taken into
account:

     (1) If an Employee severs from service by reason of a quit, discharge or
retirement and then recommences employment with an Employer within 12 months of the
Termination of Employment, the period of severance shall be taken into account;

     (2) If an Employee severs from service by reason of a quit, discharge or
retirement during an absence from service of 12 months or less for any reason

8

 

other than a quit, discharge, retirement or death, and then recommences
employment with an Employer within 12 months of the date on which the Employee was
first absent from service, the period of severance shall be taken into account.

     Section 2.41 Plan. The Huntington Ingalls Industries Savings Plan.

     (a) For purposes of making and receiving contributions, the Plan consists of the
Sub-Plans identified in Exhibit A.

     (b) For purposes of retaining distribution and withdrawal rights under plans that have
been merged into this Plan, several subaccounts are maintained as described in Article 8.

     Section 2.42 Plan Year. The calendar year, except the initial Plan Year shall be the
period beginning on March 31, 2011 and ending on December 31, 2011.

     Section 2.43 Qualifying Securities. “Qualifying Securities” means common stock issued
by the Company (or a corporation which is a member of the same controlled group) that is readily
tradable on an established securities market. The term “controlled group of corporations” has the
meaning given such term by Code Section 409(l)(4).

     Section 2.44 Retirement Account Contributions. Employer contributions under Section
5.14 for which no Participant contributions are required.

     Section 2.45 Roth Catch-Up Contributions. Roth Contributions made in accordance with
and subject to the limitations of Code Section 414(v) and the regulations issued under that Code
Section.

     Section 2.46 Roth Contributions. After-tax salary deferrals contributions by
Participants under Code Section 402A from Compensation paid by an Employer whose payroll system
supports the processing of Roth Contributions, as determined by the Employer in its sole
discretion. If a Participant is transferred from employment with an Employer whose payroll system
supports the processing of Roth Contributions to employment with an Employer whose payroll system
does not support the processing of Roth Contributions, such Participant’s election to contribute
Roth Contributions, if any, shall become an election to contribute the same percentage of
Tax-Deferred Contributions, subject to the provisions of Article 6.

     Section 2.47 Service Contract Act Employee. An Employee subject to the protections of
the Service Contract Act of 1965, as amended, 41 U.S.C. §§ 351-358.

     Section 2.48 Special Contribution. A discretionary contribution made by the
Affiliated Companies in addition to any Company Matching Contributions.

     Section 2.49 Spin-Off. This term is defined in Section 1.02.

9

 

     Section 2.50 Supplemental Contributions. Participant contributions whether After-Tax,
Roth or Tax-Deferred that are not eligible for a Company Matching Contribution. See Section 5.04.

     Section 2.51 Suspense Account. An account in the Trust Fund maintained by the Trustee
under the ESOP to hold unallocated Qualifying Securities acquired with the proceeds of a loan,
Dividends on such unallocated Qualifying Securities, earnings on such Dividends and any proceeds
from the disposition of such unallocated Qualifying Securities.

     Section 2.52 Tax-Deferred Contributions. Pre-tax salary deferral contributions by
Participants under Code Section 401(k). See Sections 5.03 and 5.04.

     Section 2.53 Termination of Employment. The term Termination of Employment shall
refer to the date an Employee ceases to be employed by the Company or an Affiliated Company because
he or she is discharged, quits or dies. If a Participant is no longer employed by the Company or
an Affiliated Company as a result of a sale, outsourcing of the Participant’s job function, or
similar transaction with an unrelated employer that constitutes a severance from employment, he or
she will be considered to have a Termination of Employment only to the extent, consistent with
Internal Revenue Service interpretations, as determined in the sole discretion of the Committee,
that the Plan would remain qualified under Code Sections 401(a) and 401(k) if the Participant was
treated as having a Termination of Employment.

     Section 2.54 Trust or Trust Fund. The sum of the contributions made to the Plan and
held by the Trustee, increased by the amount of any earnings and decreased by the amount of any
losses, administrative expenses and benefit payments.

     Section 2.55 Trust Agreement. The agreement or agreements described in Article 17.

     Section 2.56 Trustee. The one or more trustees, banks, trust companies, insurers or
other individuals or entities that hold and manage the Trust Fund.

     Section 2.57 Year of Service. The term Year of Service shall refer to each
twelve-month Period of Service.

10

 

ARTICLE 3

Eligible Employees

     Section 3.01 In General. This Article describes Employees who are eligible to make
contributions to the Plan and to have contributions made for them by the Affiliated Companies.

     Section 3.02 Eligible Employees. All Employees who are at least 18 years old are
Eligible Employees under the Plan, so long as they meet the requirements of (a) and either (b), (c)
or (d):

     (a) An Employee covered under Exhibit A.

     (b) A salaried Employee who is either a citizen or a legal resident of the United
States.

     (c) An hourly-rated Employee who is either a citizen or a legal resident of the United
States.

     (d) Other Employees allowed to participate by a written resolution of the Board.

     Section 3.03 Leased Employees. Leased Employees are not eligible to make
contributions or to have contributions made for them by the Company under the Plan. However, the
Company elects to count Leased Employees as permitted by Treasury Regulation Section 1.414(q)-1T,
Q&A-7(b)(4).

     Section 3.04 Participants in Other Plans. Employees are not covered by this Plan for
any Plan Year or portion of a Plan Year if they are actively participating under any other defined
contribution plan qualified under Code Section 401(a). Solely for purposes of this Section 3.04,
Employees are active participants in another defined contribution plan if they are generally
eligible to make or receive contributions under the plan. If an Employee could be covered by more
than one plan, some or all of which include this or a similar provision, the Committee will resolve
the discrepancy to allow eligibility for one plan only.

11

 

ARTICLE 4

Participation

     Section 4.01 In General. All Eligible Employees will become Active Participants in
the Plan in accordance with this Article. Employees who are not Eligible Employees but had
accounts under the Northrop Grumman Savings Plan that were transferred to this Plan in connection
with the Spin-Off will become Inactive Participants in the Plan. Only Active Participants are
eligible for Company contributions under the Plan and to make contributions.

     Section 4.02 Transfers To Ineligible Positions. An Eligible Employee who is
transferred to an ineligible position becomes an Inactive Participant and is no longer eligible to
receive or make contributions under the Plan. However, a transferred Employee has not terminated
employment for purposes of this Plan. So long as they remain Employees of the Affiliated
Companies, Inactive Participants may change investment options, borrow under Article 12, and make
in-service withdrawals.

     Section 4.03 Ineligible Positions. Ineligible positions include all employment not
described in Exhibit A and positions outside of the United States if the Employee is not a citizen
of the United States.

     Section 4.04 Leaves of Absence. An Eligible Employee on an unpaid Leave of Absence is
also an Inactive Participant and so is not eligible to receive or make contributions. Unless
expressly provided otherwise under the Plan, an Employee on paid (whether in full or at a reduced
rate) Leave of Absence has not terminated employment and is an Active Participant.

     (a) If an Employee on a Leave of Absence fails to return to active employment with the
Affiliated Companies at the end of the approved leave, he or she is treated as terminating
employment at the end of the leave.

     (b) Employees on Leaves of Absence, whether paid or unpaid, may change investment
options, borrow to the extent permitted under Article 12, and make in-service withdrawals.

     Section 4.05 Leased Employees. Leased Employees may not participate in the Plan.

     Section 4.06 Sub-Plans. Multiple contribution formulas apply under the Plan.
Sub-Plans are established to assign contribution formulas to each group of Participants. See
Article 5 and Exhibit A.

     (a) An Eligible Employee may participate in no more than one of the Sub-Plans at any
one time.

     (b) Contribution levels, including Company Matching Contributions and/or Company Profit
Sharing Contributions, are based upon a Participant’s Sub-Plan as described in Article 5.

     Section 4.07 Committee Rules for Participation. The Committee may establish further
rules for starting, stopping, and restarting active participation in the Plan. The Committee may

12

 

change those rules at any time without advance notice to the Participants. Those rules may
involve procedures for recordkeeping, enrollment confirmation, payroll deduction, receiving and
processing participant transaction requests, procedures related to automatic enrollment, and other
matters.

13

 

ARTICLE 5

Contributions

     Section 5.01 Compensation.

     (a) “Compensation” is described in detail in the Standard Definitions and Procedures
for Certain Huntington Ingalls Industries, Inc. Retirement Plans, which the Committee or its
delegate may amend from time to time.

     (b) For the Plan Year in which an Active Participant terminates employment with the
Affiliated Companies, Compensation includes only amounts paid before the end of the first
full calendar month following the calendar month of termination of employment.

     Section 5.02 Compensation Limit. To the extent required by Code Section 401(a)(17),
compensation counted under this Plan will be limited in amount.

     (a) This Section is only intended to implement Code Section 401(a)(17) and is to be
interpreted accordingly.

     (b) Compensation may not exceed $245,000, as adjusted for cost-of-living increases in
accordance with Code Section 401(a)(17)(B).

     (c) If Code Section 401(a)(17) is amended, any additional limitations on counted
compensation apply automatically, without further amendment to the Plan.

     Section 5.03 Basic Contributions. Active Participants may make Basic Contributions in
accordance with this Section.

     (a) Basic Contributions are eligible for a Company Matching Contribution.

     (b) A Participant’s Basic Contributions may be made up of After-Tax Contributions,
Tax-Deferred Contributions, Roth Contributions, or any combination thereof.

     (c) Article 6 may limit the amount of Basic Contributions a Participant may otherwise
make under this Section.

     (d) The amount of Basic Contributions an Active Participant may make depends upon the
Sub-Plan to which he or she is assigned. The amount is the applicable percentage of
Compensation provided in the Basic Contributions column of the table in Section 5.07.

     Section 5.04 Supplemental Contributions. Active Participants may make Supplemental
Contributions under the rules of this Section.

     (a) Supplemental Contributions are not eligible for any Company Matching Contribution.

14

 

     (b) A Participant’s Supplemental Contributions may be made up of After-Tax
Contributions, Tax-Deferred Contributions, Roth Contributions, or any combination thereof.

     (c) Article 6 may limit the amount of Supplemental Contributions a Participant may
otherwise make under this Section.

     (d) The amount of Supplemental Contributions an Active Participant may make depends
upon the Sub-Plan to which he or she is assigned. The amount is the applicable percentage
of Compensation provided in the Supplemental Contributions column of the table in Section
5.07.

     Section 5.05 Company Matching Contributions. The Employers contribute matching
amounts based on Active Participants’ Basic Contributions under the rules of this Section.

     (a) The match is calculated for each payroll date rather than annually and is credited
for the period for which the corresponding Basic Contribution is credited to the Plan.

     (b) Article 6 may prevent the Employers from making any contribution or from making the
full contribution under this Section.

     (c) The amount of Company Matching Contributions depends upon the Sub-Plan to which an
Active Participant is assigned. The amount is the applicable percentage of Basic
Contributions that the Active Participant makes, as provided in the Company Matching
Contributions column of the table in Section 5.07.

     Section 5.06 Company Profit Sharing Contributions. The Employers make Company Profit
Sharing Contributions for certain Active Participants under the rules of this Section.

     (a) The rules of Article 6 may prevent the Employers from making any contribution or
from making the full contribution under this Section.

     (b) Company Profit Sharing Contributions are paid to the Trust for each Plan Year
within the time prescribed by law, including extensions of time, for filing the Company’s
federal income tax return for the Plan Year. Contributions may be made at different times
by the Employers for different Employees.

     (c) The amount of Company Profit Sharing Contributions depends upon the Sub-Plan to
which an Active Participant is assigned. The amount is the applicable percentage of
Compensation provided in the Company Profit Sharing Contributions column of the table in
Section 5.07.

15

 

     Section 5.07 Contribution Levels. The following table provides the contribution
levels for Sections 5.03-5.06, based upon the Sub-Plan to which an Active Participant is assigned.
See Exhibit A for Sub-Plan assignments.

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Company
	Sub-	 	Basic	 	Supplemental	 	Company Matching	 	Profit Sharing
	Plan	 	Contributions	 	Contributions	 	Contributions	 	Contributions
	A

	 	0-8%
	 	0-67%

(0-27% for HCEs*)
	 	100% of first 2
percentage points
of Basic
Contributions

50% of next 2
percentage points
of Basic
Contributions

25% of next 4
percentage points
of Basic
Contributions
	 	 	0	%
	 
	 	 	 	 	 	 	 	 	 	 
	CC

	 	0-4%
	 	0-71%

(0-31% for HCEs)
	 	100% of first 2
percentage points
of Basic
Contributions

50% of next 2
percentage points
of Basic
Contributions
	 	 	0	%

 

			
	*	 	“HCEs” means Employees who are Highly Compensated Participants for the Plan Year.

     Section 5.08 Contribution Elections.

     (a) An Active Participant may elect to make contributions by filing an authorization
with the Committee. In the authorization, the Participant:

     (1) Agrees to be bound by the terms of the Plan,

     (2) Chooses the percentages of Compensation that he or she wishes to
contribute, and

     (3) Authorizes the Employer to withhold his or her contributions from his or
her paychecks.

     (b) If an Active Participant is hired or rehired and makes no affirmative election to
contribute to the Plan pursuant to Section 5.08(a) within a period of time after the Active
Participant is hired or rehired, as established by the Committee, then the Active
Participant shall be deemed to have initially elected a Tax-Deferred Contribution equal to
two percent (2%) of Compensation.

16

 

The Committee may provide further rules and procedures for these authorizations, which rules and
procedures may be changed at any time without advance notice to Participants.

     Section 5.09 Elections for Transferring Employees. If an Employee transfers from an
ineligible position (see Section 4.03) to a position that makes him or her an Eligible Employee and
such Eligible Employee was previously a Participant in the Plan, his or her Basic Contribution and
Supplemental Contribution election at the time of his or her prior participation will be applied
under the Plan when he or she recommences participation in accordance with the rules and procedures
determined by the Committee. If an Employee transfers from an ineligible position to a position
that makes him or her an Eligible Employee and such transferring Employee was not previously a
Participant in the Plan, his or her contribution election shall be governed by Section 5.08.

     Section 5.10 Changes In Participant Contributions.

     (a) An Active Participant may change the amount of his or her contributions and select
a new percentage of contributions as often as permitted under rules established by the
Committee.

     (b) The Committee may establish procedures whereby an Active Participant who is
automatically enrolled in the Plan pursuant to Section 5.08(b) and who makes no change to
his or her deemed election by a date established by the Committee shall be deemed to have
elected to increase his or her contribution percentage by a designated percentage until the
Active Participant reaches a designated maximum contribution.

     (c) The Committee may establish the rules and procedures governing changes in
contributions, rules providing for when contribution changes become effective, through what
means an Active Participant may change the contribution percentage and procedures that allow
an Active Participant to make a single election that automatically escalates the Active
Participant’s contribution percentage. These rules and procedures may be changed at any
time without advance notice to Participants.

     Section 5.11 Stopping Contributions. An Active Participant may stop making all
contributions under rules prescribed by the Committee.

     (a) In order to resume making contributions, a Participant must elect to begin
contributions again in accordance with the rules and procedures of the Committee.

     (b) The Committee may specify further rules and procedures for these changes, including
timing rules for when the contributions cease, which rules and procedures may be changed at
any time without advance notice to Participants.

     Section 5.12 Rollover Contributions.

     (a) Subject to (b), (c), (d) and (e), an Eligible Employee may contribute to the Plan
an “eligible rollover distribution” from an “eligible retirement plan.”

17

 

     (1) An eligible rollover distribution is any distribution of all or any portion
of the balance to the credit of the Eligible Employee described in Code Section
402(c)(4) (including any distribution attributable to an Eligible Employee’s spouse
as described in Code Section 402(c)(9)), 403(b)(8) or 408(d)(3), except that an
eligible rollover distribution does not include:

     (A) any distribution that is one of a series of substantially equal
periodic payments (not less frequently than annually) made for the life (or
life expectancy) of the Eligible Employee or the joint lives (or joint life
expectancies) of the Eligible Employee and the Eligible Employee’s
designated beneficiary, or for a specified period of ten years or more;

     (B) any distribution to the extent the distribution is required under
Code Section 401(a)(9); or

     (C) any distribution made upon hardship of the Eligible Employee.

     The term “eligible rollover distribution” includes after-tax money, but only to
the extent that money is transferred to the Plan in a direct trustee-to-trustee
transfer. The term “eligible rollover distribution” also includes a distribution of
a Roth amount only if it is a direct rollover from another Roth elective deferral
account under an applicable retirement plan described in Code Section 402A(e)(1) and
only to the extent the rollover is permitted in accordance with Code Section 402(c).

     (2) An “eligible retirement plan” is:

     (A) an individual retirement account described in Code Section 408(a),
including a Roth individual retirement account described in Code Section
408A;

     (B) an individual retirement annuity described in Code Section 408(b)
(other than an endowment contract);

     (C) an annuity plan described in Code Section 403(a);

     (D) a qualified trust described in Code Section 401(a);

     (E) an eligible deferred compensation plan described in Code Section
457(b) that is maintained by a state, political subdivision of a state, or
any agency or instrumentality of a state or political subdivision of a
state; or

     (F) an annuity contract described in Code Section 403(b).

     In addition, a Participant may contribute to the Plan an “eligible rollover
distribution” from any of the Northrop Grumman Electronic Systems Pension Plan,

18

 

Huntington Ingalls Industries Electronic Systems Union Represented Employees Pension
Plan, Huntington Ingalls Industries Space & Mission Systems Corp. Salaried Pension Plan or
Northrop Grumman Retirement Value Plan.

     (b) The amounts rolled into the Plan will be allocated to a subaccount for rollover
contributions. In addition, if applicable, any Roth or other after-tax money rolled into
the Plan will be allocated to separate subaccounts for rollover contributions of after-tax
money.

     (c) The option to make rollover contributions under (a) is available only in accordance
with procedures established by the Committee.

     (d) The Committee may condition acceptance of a rollover contribution under (a) upon
its reasonable conclusion that the distributing plan is qualified. The Committee may, for
example, require written confirmation as described in Treasury Regulation Section
1.401(a)(31)-1, Q&A-13(b) or any successor guidance. The Committee may establish rules
concerning the acceptance of rollover contributions. These rules may be changed at any time
without advance notice to Eligible Employees or Participants.

     (e) If an Eligible Employee makes a rollover contribution that the Committee later
determines does not qualify as an eligible rollover contribution, the Committee will
distribute to the Employee as soon as practicable the improper amount standing to the
Employee’s credit in the rollover contribution subaccount, valued as of the time of the
distribution.

     (f) Rollovers may be withdrawn under Article 11 as though they were After-Tax
Contributions. In addition, any rollover amounts invested in the Huntington Ingalls
Industries Fund are subject to the distribution rules of the ESOP.

     (g) Rollovers may be invested under the rules of Article 9 in the same manner as the
rest of the Participant’s Account.

     Section 5.13 Catch-Up Contributions. In accordance with, and subject to the
limitations of Code Section 414(v) and the regulations issued under that section:

     (a) All Employees who are eligible to make elective deferrals under the Plan and who
are projected to attain age 50 before the end of the calendar year (“Catch-Up Eligible
Participants”) may make an annual election to defer an amount in excess of the maximum
contribution level provided in Section 5.07 up to the limits under Code Section 414(v)
(“Catch-Up Contributions”), which shall be inclusive of any Roth Catch-Up Contributions.

     (b) If a Catch-Up Eligible Participant’s elective deferrals exceed the otherwise
applicable limits on elective deferrals or annual additions of Code Section 401(a)(30) or
415(c), or of Plan Section 5.07, those deferrals shall be treated as Catch-Up Contributions.

19

 

Such Catch-Up Contributions shall be taken into account for purposes of Plan Section 5.05 (Matching
Contributions), but shall not be taken into account for purposes of Sections 6.02 (deferral
limitation) and 6.04 (Code Section 415 limitation). The Plan will not be treated as failing to
satisfy Code Sections 401(a)(4), 401(k)(3), 410(b), or 416, as applicable, because a Participant
makes Catch-Up Contributions.

     Section 5.14 Retirement Account Contributions. The Employers shall make Retirement
Account Contributions for certain Active Participants under the rules of this Section.

     (a) An Employee who was eligible for Retirement Account Contributions under the
Northrop Grumman Savings Plan as of March 31, 2011 shall be eligible for such contributions
under this Plan effective March 31, 2011 so long as he or she remains an Eligible Employee
and meets the following requirements: (1) satisfies the eligibility requirements contained
in Section 3.02, (2) is employed in a Cash Balance Participating Business Unit (as
determined under Section 4.02 of the Huntington Ingalls Industries, Inc. Cash Balance
Program), and (3) is not eligible to participate in a defined benefit plan maintained by the
Company or any Affiliated Company.

     Employees hired or rehired by an Employer on or after March 31, 2011 who (1) satisfy
the eligibility requirements contained in Section 3.02, (2) are employed in a Cash Balance
Participating Business Unit (as determined under Article 4 of the Standard Definitions and
Procedures for Certain Huntington Ingalls Industries, Inc. Retirement Plans), and (3) are
not eligible to participate in a defined benefit plan maintained by the Company or any
Affiliated Company shall be eligible to receive a Retirement Account Contribution pursuant
to this Section 5.14.

     Employees hired or rehired on or after March 31, 2011 by an Affiliated Company that is
not an Employer who (1) subsequently transfer to employment with an Employer that is a Cash
Balance Participating Business Unit (as determined under Section 4.02 of the Huntington
Ingalls Industries, Inc. Cash Balance Program, (2) satisfy the eligibility requirements
contained in Section 3.02 after such transfer, and (3) are not eligible to participate in a
defined benefit plan maintained by the Company or any Affiliated Company shall be eligible
to receive a Retirement Account Contribution pursuant to this Section 5.14.

     (b) Retirement Account Contributions are calculated and credited for each payroll date
rather than annually, and are paid to the Trust for each Plan Year within the time
prescribed by law, including extensions of time, for filing the Company’s federal income tax
return for the Plan Year.

     (c) The rules of Article 6 may prevent the Employers from making any contribution or
from making the full contribution under this Section.

     (d) Participants who satisfy the eligibility in subsection (a) above shall be credited
with a Retirement Account Contribution each pay period in an amount determined as a
percentage of Compensation for such pay period in accordance with the following table:

20

 

	 	 	 	 	 
	Participant’s Age	 	Percentage of Compensation
	Less than 35
	 	 	3	%
	35-49
	 	 	4	%
	50 or older
	 	 	5	%

     A Participant’s age shall be determined as of December 31 of the applicable Plan Year.

     (e) Notwithstanding the provisions of subsection (a) above, no Active Participant who
accrues a benefit under the Company’s Officers Supplemental Executive Retirement Plan II for
a Plan Year shall be eligible for Retirement Account Contributions for that Plan Year.

     Section 5.15 Contributions for Certain Periods of Qualified Military Service. This
Section 5.15 shall apply with respect to a Participant who becomes Disabled or dies during a period
of qualified military service, as determined under Code Section 414(u). The Company shall make a
Company Matching Contribution, a Company Profit Sharing Contribution and a Retirement Account
Contribution, as applicable, on behalf of the Participant to the extent that such contributions
would have been made under the terms of the Plan, as modified by this Section 5.15, if the
Participant had been reemployed by an Employer on the date immediately preceding his or her
disability or death, as applicable, and then terminated employment on the date of his or her
disability or death.

     The Company Matching Contributions shall be determined based on the Participant’s average
Tax-Deferred Contributions, Roth Contributions, After-Tax Contributions, and Catch-Up Contributions
for the 12 months immediately preceding the period of qualified military service, or if shorter his
or her actual period of continuous service with an Employer. The Company Profit Sharing
Contributions and Retirement Account Contributions shall be determined based on either: (a) the
Compensation that the Participant would have received during the period of qualified military
service if the Participant had continued to be employed by the Employer, determined by the
Committee in accordance with the Code and applicable regulations; or (b) if the amount in clause
(a) is not reasonably certain, the Participant’s Compensation from the Employer during the 12-month
period (or, if shorter, his or her actual period of continuous service with the Employer)
immediately preceding the start of such qualified military service. Notwithstanding the foregoing,
the amounts contributed under this Section 5.15 shall be limited by application of Article 6 during
the year(s) to which the contributions relate and shall be reduced by any Company Matching
Contributions, Company Profit Sharing Contributions and Retirement Account Contributions actually
made on behalf of the Participant during such period of qualified military service.

21

 

     Section 5.16 Committee Rules. Contributions will be made and credited to the Trust
Fund under the rules and procedures of the Committee, which rules and procedures may be changed at
any time without advance notice to Participants.

22

 

ARTICLE 6

Limitations on Contributions

     Section 6.01 In General. This Article describes the federal tax law limitations on
contributions to the Plan on behalf of Highly Compensated Participants and other limitations that
apply to all Participants.

     Section 6.02 Dollar Limit on Participant Contributions.

     (a) Except to the extent permitted under Section 5.13 and Code Section 414(v), a
Participant’s Tax-Deferred Contributions and Roth Contributions (along with similar
contributions under any plan maintained by the Affiliated Companies) may not exceed $16,500
in any Plan Year:

     (b) For years after 2011, the limit will be adjusted in accordance with guidance issued
by the Secretary of the Treasury.

     (c) Treatment of Excess Tax-Deferred Contributions.

     (1) If a Participant elects a percentage of Compensation to be contributed as
Tax-Deferred Contributions and/or Roth Contributions that exceeds the limit under
this Section, any excess will be contributed as After-Tax Contributions. Similarly,
if a Participant makes Tax-Deferred Contributions and/or Roth Contributions to the
Plan and another plan maintained by an Affiliated Company, any excess will be
contributed as After-Tax Contributions. Either of such elections shall revert to
Tax-Deferred Contributions and/or Roth Contributions at the beginning of the next
Plan Year, provided such a Participant makes no affirmative change to his or her
election after the recharacterization as After-Tax Contributions.

     (2) If a Participant makes Tax-Deferred Contributions and/or Roth Contributions
to the Plan and another plan maintained by an employer that is not an Affiliated
Company (or any combination of plans under (1) above and this paragraph) and those
Tax-Deferred Contributions and/or Roth Contributions collectively exceed the limit
of this Section, the Participant may elect, in accordance with rules and procedures
established by the Committee, to either have such excess contributions
recharacterized as After-Tax Contributions or receive a distribution of a part or
all of the excess amounts.

     (d) The Participant’s election to receive a distribution of an excess amount must
include the Participant’s certification that the specified amount is an excess Tax-Deferred
Contribution and/or Roth Contribution.

     (e) The Participant’s election must be made not later than the first March 1st
following the close of the Plan Year in which the excess deferral occurred, and the excess
amount specified by the Participant will be recharacterized or distributed not later than
the first April 15th following the close of the Plan Year in which the excess deferral

23

 

occurred. Any excess amount distributed shall include income allocable to such amount
through the end of the Plan Year to which such excess amount is attributable.

     (f) If the Participant fails to make an election, the excess will be contributed as
After-Tax Contributions.

     Section 6.03 Limits on Highly Compensated Participants. All Participant and Company
contributions for Highly Compensated Participants are subject to the special limitations imposed by
Code Sections 401(k) and 401(m). These rules are designed so that the amount of contributions for
Highly Compensated Participants is limited based on the amount of contributions made for non-Highly
Compensated Participants. See Appendix C for details.

     Section 6.04 Section 415 Limitations. Except to the extent permitted under Section
5.13 and Code Section 414(v) (related to Catch-Up Contributions), the maximum amount of
contributions to any Participant’s Account in any Plan Year may not exceed the lesser of $49,000
(indexed in accordance with published IRS guidance) or 100% of the Participant’s Compensation for
the year. In certain cases, benefits under other plans may apply toward these limits. See
Appendix A for details.

     Section 6.05 Committee Authority. The Committee has the authority to reduce
contributions during the Plan Year, to repay contributions, and to forfeit amounts to protect the
tax qualification of the Plan and for reasons of administrative convenience.

24

 

ARTICLE 7

Vesting

     Section 7.01 In General. Except as provided in Section 7.02, a Participant’s interest
in his or her Account shall at all times be fully vested, subject to Article 6 and Appendix A.

     Section 7.02 Vesting of Retirement Account Contributions.

     (a) Except as provided in subsection (b) next below, a Participant will be fully vested
in his or her Retirement Account Contributions, and earnings thereon, upon the completion of
three Years of Service.

     (b) Notwithstanding subsection (a) above, a Participant who is an Employee shall be
fully vested in his or her Retirement Account Contributions, and earnings thereon, as of the
earliest of the following dates: (1) the date of his or her 65th birthday, (2) the date of
his or her death, or (3) the date he or she becomes Disabled. A Participant shall also be
fully vested in his or her Retirement Account Contributions, and earnings thereon, if
Employer contributions to the Plan are completely discontinued or if the Plan is terminated.

     Section 7.03 Forfeitures. If a Participant’s Termination of Employment occurs and
such Participant receives a distribution of his or her vested Account balance under the Plan, the
portion of his or her Account balance that is not vested shall be forfeited. Otherwise, the
portion of his or her Account balance that is not vested shall be forfeited only after such
Participant has incurred a 5-year Break in Service Period. A Participant who terminates with a
zero vested Account balance is deemed to have received a distribution of his or her vested Account
balance.

     Section 7.04 Application of Forfeitures. To the extent not used in the Plan Year to
restore Participants’ Accounts pursuant to Section 7.05 or to pay expenses in accordance with
Section 16.11, the Committee shall apply Forfeitures to reduce Company contributions due for the
Plan Year in which they arise. Any Forfeitures in excess of the amounts applied to reduce Company
contributions and to restore Participants’ Accounts in such Plan Year shall be carried forward to
restore Participants’ Accounts, to reduce Company contributions and to pay Plan expenses in
accordance with Section 16.11 due for succeeding Plan Years. In the event that Forfeitures arise
in the year the Plan terminates, such Forfeitures shall be used to restore Participants’ Accounts
and the excess, if any, shall be used to reduce Company contributions (if any) due for the Plan
Year and to pay Plan expenses in accordance with Section 16.11.

     Section 7.05 Reinstatement of Forfeitures. If upon Termination of Employment a
Participant incurred a Forfeiture, and if he or she is reemployed by the Company before he or she
has incurred a Break in Service Period of five years, then the balance of his or her Account that
was forfeited pursuant to Section 7.03, unadjusted by any gains or losses, shall be reinstated upon
rehire. The restored balance shall be funded, first, by Forfeitures and, second, by additional
Company contributions, which shall be due by the end of said Plan Year. Thereafter, the balance of
his or her reinstated Account that is considered vested shall be determined in accordance with
Section 7.02 as if the Participant had remained continuously employed by the Company, but excluding
the Break in Service Period in determining Years of Service.

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ARTICLE 8

Accounts

     Section 8.01 Participant Accounts. An Account is maintained for each Participant
having an amount to his or her credit under the Plan. The Account keeps track of a Participant’s
benefits. The rules for valuations and allocations of earnings, losses, expenses and forfeitures
are covered by other provisions of this Plan.

     Subaccounts shall be maintained to hold the following types of contributions:

     (1) Tax-Deferred;

     (2) After-Tax;

     (3) Roth;

     (4) Rollover (excludes rollover of Roth contributions);

     (5) Roth Rollover;

     (6) Company Match;

     (7) Company Profit Sharing;

     (8) Retirement Account;

     (9) Qualified Nonelective;

     (10) Prior Plan Pre-Tax;

     (11) Prior Plan After-Tax;

     (12) Prior Plan IRA;

     (13) Prior Plan MPP; and

     (14) Prior Plan Company.

     Section 8.02 Valuation Of Accounts.

     (a) The assets of the Trust Fund will be valued as of the end of each business day as
defined by and in accordance with the rules of the Committee. These rules may be changed at
any time without advance notice to Participants.

     (b) Valuations take into account earnings and losses of the Trust Fund along with
appreciation or depreciation, expenses, and distributions. The valuation method is
established by the Committee and may be changed at any time without advance notice to
Participants.

26

 

     (c) The allocation of expenses and other items listed in (b) is made in accordance with
the Committee’s rules and procedures, which may be changed at any time without advance
notice to Participants.

     (d) The Committee may, under unusual circumstances, direct that Accounts be valued as
of a date other than that provided under its normal rules to protect the financial integrity
of the Plan or for other reasons the Committee deems appropriate.

     Section 8.03 Benefits Not Assignable. An interest in a Participant’s Account may not
be sold, assigned, used as security (except for Plan loans under Article 12), or transferred in any
way by any Participant or beneficiary except as may be provided in a qualified domestic relations
order under Code Section 414(p) or in accordance with a levy or garnishment under the Federal Debt
Collection Procedures Act or the Mandatory Victims Restitution Act.

27

 

ARTICLE 9

Investments

     Section 9.01 In General. The Investment Committee will establish a number of
different investment funds or other investment options for the Plan. The Investment Committee may
change the funds or other investment options from time to time, except that the Plan shall maintain
the Huntington Ingalls Industries Fund in accordance with Appendix H and the Northrop Grumman Fund
subject to the terms and conditions of Section 9.02.

     Section 9.02 Northrop Grumman Fund.

     (a) General. As a result of the Spin-Off, the Plan will receive a transfer of a
portion of the Northrop Grumman Fund under the Northrop Grumman Savings Plan. In order to
permit Participants a reasonable opportunity to decide when they wish to liquidate, in an
orderly fashion, their investment in the Northrop Grumman Fund, the Plan will maintain the
Northrop Grumman Fund in accordance with the provisions of this Section 9.02. However, no
new investment in the Northrop Grumman Fund shall be permitted. Any cash dividends paid with
respect to a Participant’s interest in the Northrop Grumman Fund shall be reinvested in the
Northrop Grumman Fund.

The Northrop Grumman Fund shall be maintained until such date as determined by the
Investment Committee for the purpose of permitting Participants the opportunity to divest
their interests in the Northrop Grumman Fund. Prior to such date selected by the Investment
Committee, Participants may direct the transfer of investments out of the Northrop Grumman
Fund, subject to Section 9.03, but may not direct any transfers, contributions or other
investments to the Northrop Grumman Fund. Commencing on the date selected by the Investment
Committee, there shall be implemented reasonable and prudent measures to liquidate, in an
orderly fashion, the common stock of Northrop Grumman Corporation held in the Northrop
Grumman Fund. At the conclusion of such liquidation, the proceeds from the liquidation
shall be deposited in Plan participant Accounts in an investment fund to be determined by
the Investment Committee.

     (b) Voting a Participant’s Investment in Common Stock. Each Participant shall
be entitled to direct the manner in which the shares (including fractional shares) of
Northrop Grumman Corporation common stock in his or her Account in the Northrop Grumman Fund
are to be voted. The Trustee shall vote such shares in accordance with the directions of
the Participants. This requirement will be met if the Trustee votes the combined fractional
shares to the extent possible to reflect the direction of the voting Participants. All
shares credited to Participants’ Accounts as to which the Trustee does not receive voting
directions, and all unallocated shares held by the Trustee, shall be voted by the Trustee
proportionately in the same manner as the Trustee votes shares as to which the Trustee has
received voting instructions. The Company will cause proxy materials to be distributed to
all Participants who have an Account balance in the Northrop Grumman Fund prior to each
stockholders’ meeting at the same time it distributes such materials to all other
stockholders.

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     Section 9.03 Investment Elections and Transfers.

     (a) Participants may elect how future contributions to their Accounts will be invested
in the various investment funds and may change their elections from time to time.

     (b) Except as provided in (c), Participants may elect to make transfers of previously
contributed amounts plus earnings among the different investment funds.

     (c) Amounts may be transferred to or from the Huntington Ingalls Industries Fund only
as provided under the Employee Stock Ownership Plan.

     (d) An election or change of election made under this Section is within the independent
control of the Participant or beneficiary. To the extent this control is exercised, no
person who is otherwise a fiduciary will be liable for any loss or breach resulting from the
Participant’s or beneficiary’s exercise of control. The Committee and Trustee will comply
with the Participant’s or beneficiary’s investment instruction unless it would result in a
prohibited transaction under ERISA or the Code, generate taxable income to the Trust Fund,
or result in an event described in 29 CFR section 2550.404c-1(d)(2)(ii).

     (e) The Investment Committee may establish rules and procedures whereby, in the absence
of an affirmative election, an Active Participant or beneficiary is deemed to have elected
an investment fund that is a “qualified default investment alternative” under 29 CFR section
2550.404c-5(e). The Investment Committee may, in its sole direction, apply such deemed
investment election to an Active Participant who is automatically enrolled in the Plan
pursuant to Section 5.08(b) and to any other situation involving a failure by an Active
Participant or beneficiary to provide investment instruction, provided such rules and
procedures are consistent with 29 CFR section 2550.404c-5 and any final regulations or other
guidance issued thereunder.

     (f) Notwithstanding the preceding provisions of this Section 9.03 and except as
necessary under Section 16.16, Company policy provides that Employees who are officers
subject to Section 16 of the Securities Exchange Act of 1934 and other appointed or elected
officers of the Company may not, absent prior approval of the office of the Corporate
Secretary of the Company, make any investment elections impacting, or transfer into or out
of, the Huntington Ingalls Industries Fund outside the window period specified by the
Corporate Vice President and General Counsel of the Company. Except as determined by the
Corporate Vice President and General Counsel of the Company, each window period shall begin
the second day following the release of the Company’s quarterly or annual statement of sales
and earnings and end as of the 30th day following such announcement. The
restrictions in this subsection (f) shall be implemented by the Plan as soon as
administratively feasible after March 31, 2011.

     (g) Participants shall not be permitted to invest any contributions to the Plan in, or
to transfer existing Account balances to, the Northrop Grumman Fund. Participants shall be
permitted to divest their interest in the Northrop Grumman Fund up to and

29

 

including a date to be determined by the Investment Committee in accordance with
Section 9.02(a), subject to this Section 9.03.

     (h) Notwithstanding the preceding provisions of this Section 9.03 and except as
necessary under Section 16.16, Employees who are officers subject to Section 16 of the
Securities Exchange Act of 1934 and other appointed or elected officers of the Company may
not, absent prior approval of the office of the Corporate Secretary of the Company, transfer
out of the Northrop Grumman Fund outside the window period specified by the Corporate Vice
President and General Counsel of the Company. Except as determined by the Corporate Vice
President and General Counsel of the Company, each window period shall begin the second day
following the release of the Company’s quarterly or annual statement of sales and earnings
and end as of the 30th day following such announcement.

     Section 9.04 Committee Rules. Selections of investments, changes, and transfers must
be made according to the Committee’s rules and procedures.

     (a) The Committee may prescribe rules addressing, among other matters, limits on
amounts that may be transferred and procedures for electing transfers.

     (b) The Committee may prescribe valuation rules for purposes of investment elections
and transfers. Those rules may, in the Committee’s discretion, apply averaging methods to
determine values. The Committee may also change the methods it uses for valuation from time
to time.

     (c) The Committee may prescribe the periods and frequency with which Participants may
change investment elections and make transfers.

     (d) If an Employee transfers from an ineligible position (see Section 4.03) to a
position that makes him or her an Eligible Employee and such Eligible Employee was
previously a Participant in the Plan, his or her investment elections at the time of his or
her prior participation will be applied under the Plan when he or she recommences
participation in accordance with the rules and procedures determined by the Committee. If
an Employee transfers from an ineligible position to a position that makes him or her an
Eligible Employee and such transferring Employee was not previously a Participant in the
Plan, his or her investment elections will be made in accordance with Section 9.03.

     (e) The Committee may change its rules and procedures under this Article at any time
without advance notice to Participants.

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ARTICLE 10

Post-Employment And Age 70-1/2 Distributions

     Section 10.01 In General. When a Participant terminates employment with the
Affiliated Companies, becomes Disabled or reaches age 70-1/2, distributions may be made under this
Article.

     (a) Distributions on account of a Participant’s death are made under Article 13.

     (b) Distributions of a Participant’s Merged Plan Accounts are made under Appendix E or
F, whichever applies.

     Section 10.02 Termination, Layoff and Leave. When a Participant:

     (a) terminates employment for any reason,

     (b) becomes Disabled, or

     (c) is laid off,

the Participant may elect to have his or her entire Account paid to him or her as soon as possible.

     Section 10.03 Small Benefits.

     (a) If a Participant’s vested Account equals $1,000 or less, the Account is distributed
in a single lump sum in cash.

     (b) This rule applies if the vested Account equals $1,000 or less at the time of the
distribution.

     (c) Payment is made following the later of (i) the Participant’s Termination of
Employment or (ii) the Participant’s repayment of (or first default on) all loans
outstanding on the Account when the Participant terminated.

     (d) A Participant who terminates with a zero vested Account balance is deemed to have
received a distribution of his or her vested Account balance.

     Section 10.04 Age 70-1/2 Distributions.

     (a) Mandatory Commencement. Subject to the election in subsection (b) and
except as provided in Appendix E, distribution of a Participant’s entire Account will
commence by the Participant’s Mandatory Commencement Date. If the Participant has not
chosen to receive a systematic payment of distributions in accordance with Section 10.08(c):

     (1) he or she will receive his or her initial required minimum distribution, as
determined in accordance with Code Section 401(a)(9)(A)(ii), in December of the
calendar year in which he or she becomes age 70-1/2 or

31

 

terminates employment, if later. The remaining balance of such Participant’s
Account shall be distributed in the first quarter of the calendar year following the
year of such Participant’s initial required distribution.

     (2) and notwithstanding the provisions of paragraph (1), if the Participant
terminates employment after he or she becomes age 70-1/2 or in the calendar year in
which he or she becomes 70-1/2, but after the date on which the December required
minimum distributions for the calendar year of his or her termination are processed
in accordance with paragraph (1), he or she will receive a distribution of his or
her entire Account in the first quarter of the calendar year following his or her
termination of employment.

     (b) One-Time Election. An Eligible Participant (as defined in (3)) is
permitted to make a one-time election to receive the distribution under (a) or forego the
distribution of his or her Account until he or she ceases to be an Eligible Participant.

     (1) An Eligible Participant who fails to make an election will be treated as
having elected to forego the distribution until he or she ceases to be an Eligible
Participant.

     (2) Eligible Participants must make the same affirmative or negative election
for purposes of his or her Merged Plan Accounts and amounts accumulated under this
Plan.

     (3) An individual is an Eligible Participant for purposes of this Section so
long as:

     (A) He or she is not a 5%-Owner; and

     (B) He or she remains an Employee.

     Section 10.05 Immediate Rehires. No distribution will be made to a Participant who
terminates employment, goes on leave or is laid off, and then returns to work for the Affiliated
Companies before receiving a distribution.

     Section 10.06 Delaying Payment for Accounts Over $1,000. Any Participant with an
Account balance over $1,000 may elect to delay payment of benefits until the date prescribed in
Section 10.04.

     Section 10.07 Commencement of Benefits. Upon termination, absent a contrary election,
a Participant will be deemed to have elected to leave his or her Account in the Plan subject to the
distribution rules of Section 10.04.

     Section 10.08 Form of Distributions. Distributions are made in a single payment in
cash, except as provided in (a), (b) and (c).

     (a) ESOP. Interests in the Huntington Ingalls Industries Fund are distributed
in accordance with the ESOP.

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     (b) Northrop Grumman Fund. Participants may elect to receive a distribution
with respect to that portion of his or her Account then invested in the Northrop Grumman
Fund in whole shares of common stock of Northrop Grumman Corporation, with any fractional
shares paid in cash. If no such election is made, that portion of a Participant’s Account
invested in the Northrop Grumman Fund shall be distributed in cash.

     (c) Partial Distributions. A Participant may instruct the Committee to
distribute a portion of his or her vested Account under this Article. The minimum partial
distribution amount is $100 or the entire distributable amount, if less.

     (d) Payable for Life. The Committee shall maintain, within the Plan,
provisions for the systematic payment of distributions of a Participant’s total vested
Account balance, including Employee and Employer contributions, after retirement in a form
that is paid or payable for the life of the Participant at the option of the Participant.

     Section 10.09 Time of Election. A Participant must elect the form of benefit payments
within the 90-day period ending on his or her Annuity Starting Date.

     Section 10.10 Valuing Distributions. Distributions are valued on dates determined
under the Committee’s rules.

     (a) The Committee may change its rules at any time without advance notice to the
Participants.

     (b) The Committee may, under unusual circumstances, direct that distributions be valued
as of a date other than that provided under its normal rules to protect the financial
integrity of the Plan or for other reasons the Committee deems appropriate.

     Section 10.11 Committee Rules. Payment of benefits and Participant elections must be
made according to the Committee’s rules and procedures, which may be changed at any time without
advance notice to Participants.

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ARTICLE 11

Withdrawals

     Section 11.01 Eligibility for Withdrawals.

     (a) Withdrawals under Sections 11.02-11.04 may be made by any Participant who is still
employed by an Affiliated Company.

     (b) Withdrawals from a Participant’s Merged Plan Accounts are subject to Appendix E or
F, whichever applies. Withdrawals of all other money are made under this Article.

     Section 11.02 Hardship Withdrawals. A Participant may elect a withdrawal if a
hardship described in this Section occurs. Hardship withdrawals are limited to the dollar amount
of a Participant’s Tax-Deferred Contributions, any earnings that he or she had on tax-deferred
contributions as of December 31, 1988, plus Roth Contributions.

     Any hardship withdrawal under the Plan shall first be made from Tax-Deferred Contributions, if
any, then from Roth Contributions to the extent necessary. A hardship withdrawal may not be taken
from the Participant’s Retirement Account subaccount.

     (a) Determination of Hardship. The Committee must determine that a Participant
has a “hardship” within the meaning of Code Section 401(k)(2)(B) before the Participant is
eligible for a hardship withdrawal. A Participant is suffering a hardship only if, based
upon the relevant facts and circumstances, the Committee determines the following:

     (1) the Participant is suffering an immediate and heavy financial need;

     (2) the need cannot be relieved through other reasonable sources; and

     (3) the withdrawal is no more than necessary to satisfy the need.

The Committee may request information it deems appropriate and necessary to ascertain
whether a Participant is suffering a hardship.

     (b) Immediate and Heavy Financial Need. The source of a Participant’s
immediate and heavy financial need must include one or more of the following circumstances:

     (1) payment of expenses for (or necessary to obtain) medical care that would be
deductible under Code Section 213(d) (determined without regard to whether the
expenses exceed 7.5% of adjusted gross income);

     (2) payment of tuition and related educational fees (including room and board)
for up to the next 12 months of post-secondary education of the Participant, his
spouse, children, dependents (as defined in Code Section 152,

34

 

determined without regard to Code Sections 152(b)(1), (b)(2) and (d)(1)(B)) or
primary beneficiary under the Plan;

     (3) costs directly related to the purchase (excluding mortgage payments) of a
principal residence for the Participant;

     (4) prevention of eviction of the Participant from his principal residence or
foreclosure on the mortgage of his principal residence;

     (5) burial or funeral expenses for the Participant’s deceased parent, spouse,
children, dependents (as defined in Code Section 152, determined without regard to
Code Section 152(d)(1)(B)) or primary beneficiary under the Plan;

     (6) expenses for the repair of damage to the Participant’s principal residence
that would qualify for the casualty deduction under Code Section 165 (determined
without regard to whether the loss exceeds 10% of adjusted gross income);

     (7) any federal, state or local income taxes or penalties reasonably
anticipated to result from the hardship withdrawal; or

     (8) any other circumstances determined by the Secretary of the Treasury to
constitute immediate and heavy financial need for this purpose.

     A financial need will not fail to qualify as immediate and heavy solely because the
need was reasonably foreseeable or voluntarily incurred by the Participant.

     (c) Other Reasonable Sources of Relief. In determining whether relief is
reasonably available from other resources, the Committee may reasonably rely upon the
Participant’s representation that the need cannot be relieved:

     (1) Through reimbursement or compensation by insurance or otherwise;

     (2) By liquidation of the Participant’s assets;

     (3) By cessation of elective contributions under the Plan;

     (4) By other currently available distributions (including distribution of ESOP
dividends described in Code Section 404(k) or nontaxable (at the time of the loan)
loans from plans maintained by the Employer; or

     (5) By borrowing from commercial sources on reasonable commercial terms in an
amount sufficient to satisfy the need.

     The actions listed above will not be considered reasonable sources of relief if the
effect of the action would be to increase the amount of the need. For purposes of this

35

 

Section, the Participant’s resources are deemed to include assets of the Participant’s
spouse and minor children that are reasonably available to the Participant.

     (d) Amount of Withdrawal. The amount of a hardship withdrawal cannot exceed
the sum of:

     (1) the amount required to relieve the financial need that is not reasonably
available from other resources of the Participant; and

     (2) the amount necessary to pay income taxes and/or penalties reasonably
anticipated to result from the hardship withdrawal.

     (e) A Participant who is granted a hardship withdrawal hereunder shall be suspended
from making any Basic Contributions and Supplemental Contributions under the Plan, and
elective contributions and employee contributions to any other plan maintained by an
Employer, for a period of six (6) months following receipt of such withdrawal.

     Section 11.03 Age 59-1/2 Withdrawals. Upon reaching age 59-1/2, a Participant may
withdraw all or a portion of the vested amounts held in the Participant’s Tax-Deferred, After-Tax,
Roth, Rollover, Roth Rollover, Company Match, Retirement Account, Qualified Nonelective, Prior Plan
Pre-Tax, Prior Plan After-Tax, Prior Plan IRA and Prior Plan Company subaccounts.

     Section 11.04 Other In-Service Withdrawals. A Participant who is still employed by an
Affiliated Company may request an in-service withdrawal of amounts held in his or her Prior Plan
After-Tax, After-Tax, Prior Plan IRA, Prior Plan Company, Rollover, and Company Match subaccounts.
The Committee may establish, in its sole discretion, minimum withdrawal amounts and frequency
limitations that apply to withdrawals under this Section 11.04.

     Section 11.05 Valuing Withdrawals. Withdrawals are valued on dates as determined in
accordance with the rules of the Committee.

     (a) The Committee may change its rules at any time without advance notice to the
Participants.

     (b) Under unusual circumstances, in order to protect the financial integrity of the
Plan, the Committee may direct that withdrawals be valued as of a date other than that
provided by its normal rules or for other reasons the Committee deems appropriate.

     Section 11.06 Minimum Withdrawals. The minimum withdrawal for all withdrawals under
this Article is $100 or the entire amount withdrawable, whichever is less.

     Section 11.07 Committee Rules. Payment of withdrawals and Participant elections must
be made in accordance with the Committee’s rules and procedures, which may be changed at any time
without advance notice to Participants.

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     Section 11.08 Military Reservist Distributions. Any Participant who is a member of
the U.S. military reserves and who is called or ordered to duty for a period of at least 180 days
during the period after September 11, 2001 may request a distribution of his or her Tax-Deferred
Contributions and/or Roth Contributions by notifying the Committee. The Committee may establish
such rules, impose such requirements and require the completion of such forms and documents (in
electronic or paper formats), in its sole discretion, and applied in a nondiscriminatory and
objective basis, in order to administer this Section 11.08.

     Section 11.09 Military Service Distributions. A Participant may request a
distribution of his or her Tax-Deferred Contributions and/or Roth Contributions during a period of
qualified military service, as determined under Code Section 414(u), of more than 30 days by
notifying the Committee. No Basic or Supplemental Contributions shall be made on behalf of a
Participant who takes a distribution pursuant to this Section 11.09 for a period of six months
following such distribution. The Committee may establish such other rules, impose such
requirements and require the completion of such forms and documents (in electronic or paper
formats), in its sole discretion, and applied in a nondiscriminatory and objective basis, in order
to administer this Section 11.09.

     Section 11.10 Restriction on Withdrawals for Officers.

     (a) Huntington Ingalls Industries Fund. Company policy provides that an
Employee who is an officer subject to Section 16 of the Securities Exchange Act of 1934 or
other appointed or elected officer of the Company may not, absent prior approval of the
office of the Corporate Secretary of the Company, take any withdrawal pursuant to this
Article 11 from the Huntington Ingalls Industries Fund outside the window period specified
by the Corporate Vice President and General Counsel of the Company; however, the portion of
such Participant’s Account invested in the Huntington Ingalls Industries Fund shall be taken
into consideration for determining the amount available for withdrawals. Except as
determined by the Corporate Vice President and General Counsel of the Company, each window
period shall begin the second day following the release of the Company’s quarterly or annual
statement of sales and earnings and end as of the 30th day following such
announcement. The restrictions in this subsection (a) shall be implemented by the Plan as
soon as administratively feasible after March 31, 2011.

     (b) Northrop Grumman Fund. An Employee who is an officer subject to Section 16
of the Securities Exchange Act of 1934 or other appointed or elected officer of the Company
may not, absent prior approval of the office of the Corporate Secretary of the Company, take
any withdrawal pursuant to this Article 11 from the Northrop Grumman Fund outside the window
period specified by the Corporate Vice President and General Counsel of the Company;
however, the portion of such Participant’s Account invested in the Northrop Grumman Fund
shall be taken into consideration for determining the amount available for withdrawals.
Except as determined by the Corporate Vice President and General Counsel of the Company,
each window period shall begin the second day following the release of the Company’s
quarterly or annual statement of sales and earnings and end as of the 30th day
following such announcement.

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ARTICLE 12

Loans

     Section 12.01 In General. Participants, other than those described in Section 12.02,
may borrow from their Accounts in accordance with Code Sections 72(p) and 401(k) and the Huntington
Ingalls Industries Employee Benefit Plan Loan Guidelines (“Guidelines”), which can be found in
Article 3 of the Standard Definitions and Procedures for Certain Huntington Ingalls Industries,
Inc. Retirement Plans. The Guidelines may be amended at any time without advance notice to
Participants by the individual or entity identified in the Guidelines as having amendment
authority. Notwithstanding the preceding sentences and any provisions of the Guidelines, loan
amounts may not be taken from a Participant’s Retirement Account subaccount, and the balance in
such subaccount shall not be considered in determining the Participant’s total Account balance for
purposes of determining his or her maximum loan amount.

     Section 12.02 Former Employees. Former Employees may not obtain loans unless they are
“parties in interest” within the meaning of ERISA Section 3(14).

     Section 12.03 Transferred Plan Loans. Any Participant with a plan loan outstanding
from a Merged Plan as of the effective date of that plan’s merger into this Plan will continue to
be required to repay that loan on the same terms and over the same period as in effect under the
terms of the Merged Plan. Any Participant with a plan loan outstanding under the Northrop Grumman
Savings Plan as of the Spin-Off that was transferred to this Plan will continue to be required to
repay that loan on the same terms and over the same period as in effect under the terms of the
Northrop Grumman Savings Plan as of the date of transfer to this Plan.

     Section 12.04 Repayment Upon Death. The spouse of a Participant who dies with a loan
outstanding on the date of the Participant’s death may continue repayment of such loan under the
terms and conditions that applied to the loan immediately prior to the Participant’s death.

     Section 12.05 Restriction on Loans for Officers.

     (a) Huntington Ingalls Industries Fund. Company policy provides that an
Employee who is an officer subject to Section 16 of the Securities Exchange Act of 1934 or
other appointed or elected officer of the Company may not, absent prior approval of the
office of the Corporate Secretary of the Company, take any loan pursuant to this Article 12
from the Huntington Ingalls Industries Fund outside the window period specified by the
Corporate Vice President and General Counsel of the Company; however, the portion of such
Participant’s Account invested in the Huntington Ingalls Industries Fund shall be taken into
consideration for determining the amount available for loans. Except as determined by the
Corporate Vice President and General Counsel of the Company, each window period shall begin
the second day following the release of the Company’s quarterly or annual statement of sales
and earnings and end as of the 30th day following such announcement. The
restrictions in this subsection (a) shall be implemented by the Plan as soon as
administratively feasible after March 31, 2011.

     (b) Northrop Grumman Fund. An Employee who is an officer subject to Section 16
of the Securities Exchange Act of 1934 or other appointed or elected officer of

38

 

the Company may not, absent prior approval of the office of the Corporate Secretary of
the Company, take any loan pursuant to this Article 12 from the Northrop Grumman Fund
outside the window period specified by the Corporate Vice President and General Counsel of
the Company; however, the portion of such Participant’s Account invested in the Northrop
Grumman Fund shall be taken into consideration for determining the amount available for
loans. Except as determined by the Corporate Vice President and General Counsel of the
Company, each window period shall begin the second day following the release of the
Company’s quarterly or annual statement of sales and earnings and end as of the 30th
day following such announcement.

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ARTICLE 13

Death Benefits

     Section 13.01 In General. This Article describes the payment of benefits following
the death of a Participant prior to his or her Annuity Starting Date. Death benefits from a
Participant’s Merged Accounts are paid under Appendix E or F, whichever applies.

     Section 13.02 Method and Timing of Payment. Upon the Participant’s death, payment of
his or her Account is made in a single lump sum to his or her beneficiary.

     (a) Except as provided in subsection (b) below, payment is generally made as soon as
possible following the Participant’s death.

     (b) However, if a Participant’s spouse is the beneficiary and the value of the
Participant’s entire Account equals more than $1,000 on the date of distribution, the spouse
may elect to delay payment of benefits up to the time the Participant would have reached his
or her Mandatory Commencement Date. The Account shall be distributed to the Participant’s
spouse in a single lump sum as soon as administratively feasible following the date the
Participant would have reached his or her Mandatory Commencement Date.

     Section 13.03 Form of Distributions. In general, distributions will be made in a
single payment in cash. The ESOP, however, governs the distribution form of a Participant’s
interest in the Huntington Ingalls Industries Fund.

     Section 13.04 Valuing Death Benefits. Death benefits are valued on dates determined
in accordance with the Committee’s rules.

     (a) The Committee may change its rules at any time without advance notice to the
Participants.

     (b) Under unusual circumstances, the Committee may direct that death benefits be valued
as of a date other than that provided by its normal rules to protect the financial integrity
of the Plan or for other reasons the Committee deems appropriate.

     Section 13.05 Survivor Benefits Related to Military Service. If a Participant dies
during a period of qualified military service, as determined under Code Section 414(u), his or her
beneficiary shall be entitled to any additional benefits, other than benefit accruals, as if the
Participant was reemployed by an Employer on the date immediately preceding his or her death and
terminated employment on the date of his or her death.

     Section 13.06 Committee Rules. Benefits will be paid in accordance with the
Committee’s rules and procedures, which may be changed at any time without advance notice to
Participants.

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ARTICLE 14

Beneficiaries

     Section 14.01 In General. A Participant at any time may name, on a form or in a
format prescribed by the Committee, a beneficiary to receive any benefits remaining under the Plan
when the Participant dies. A Participant may change beneficiaries at any time. A beneficiary
selection or a change in a selection is effective only when it is received by the Committee, or, if
later, at the time specified by the Participant in the selection or change.

     A Participant’s beneficiary may not be changed following the Participant’s death, except by
(a) a written instrument intended to be a “qualified disclaimer” within the meaning of Code Section
2518, or any successor provision, that is received by the Committee not later than nine months
after the Participant’s death and is accepted by the Committee prior to payment of benefits, or (b)
a qualified domestic relations order under Code Section 414(p) that is received and accepted by the
Committee prior to payment of benefits. The Committee may provide rules and procedures for these
authorizations, which rules and procedures may be changed at any time without advance notice to
Participants.

     Section 14.02 Married Participants.

     (a) The beneficiary of a married Participant is the Participant’s spouse unless
otherwise elected. An election of a nonspouse beneficiary by a married Participant is
effective only with spousal consent.

     (b) If an unmarried Participant becomes married (or a married Participant remarries),
any prior selection of a beneficiary by that Participant will be invalid, and the
Participant’s beneficiary will be his or her new spouse unless a different beneficiary is
named with spousal consent.

     Section 14.03 Determining Marital Status and Spouse. A Participant will be considered
married if he or she is married on the date of his or her death.

     (a) Unless otherwise provided by a qualified domestic relations order, as defined in
Code Section 414(p), the Participant’s spouse is the person to whom he or she was married
when the Participant died.

     (b) A qualified domestic relations order, as defined in Code Section 414(p), may
provide that a former spouse is deemed to be the Participant’s spouse for purposes of all or
a portion of the Participant’s benefit under the Plan.

     (c) If within six months after the death of a Participant, the Committee has no
knowledge that a spouse survived the Participant, it shall be conclusively presumed that no
spouse survived, and distribution may be made accordingly.

     Section 14.04 Spousal Consent. If a married Participant wishes to name someone other
than his or her spouse as beneficiary, the Participant may do so, but only with the written consent
of his or her spouse.

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     (a) For the written consent to be valid:

     (1) A notary public or Plan representative must witness the signing of the
consent documents;

     (2) The consent documents must either designate a specific beneficiary or form
of benefits, which may not be changed by the Participant without further spousal
consent, or it must expressly permit the Participant to change the beneficiary or
form of benefits without further consent by the spouse; and

     (3) The consent documents must acknowledge the effect of the election.

     (b) Spousal consent is not required if the Committee determines that there is no
spouse, it is presumed under Section 14.03(c) that there is no spouse, or under other
circumstances permitted by regulations under the Code.

     (c) Any consent by a spouse (or determination that spousal consent cannot be obtained)
is effective only with respect to that particular spouse.

     Section 14.05 Explanation. The Committee must provide each Participant a written
explanation of:

     (a) The terms and conditions of the various death benefit options;

     (b) The Participant’s right to make, and the effect of, an election to waive the
spousal benefit;

     (c) The rights of the Participant’s spouse under Section 14.04; and

     (d) The right to make, and the effect of, a revocation of a waiver of the spousal
benefit.

     Section 14.06 Failure to Designate Beneficiary. If no beneficiary is properly named
or the beneficiary named by the Participant dies before the Participant and no new beneficiary is
named, the beneficiary will be the Participant’s spouse, or, if there is no spouse, the
Participant’s estate.

     Section 14.07 Death of Beneficiary. If a beneficiary entitled to a payment dies, any
amount payable to the beneficiary will be paid in a single lump sum as soon as possible to the
beneficiary’s estate. Notwithstanding the preceding sentence, a spouse who is a beneficiary may
designate a beneficiary to be paid upon such spouse’s death; therefore, if such spouse beneficiary
dies, any amount payable to him or her will be paid to his or her designated beneficiary or, if
none, to his or her estate in accordance with the preceding sentence.

     Section 14.08 Committee Rules. The designation of beneficiaries will be made
according to the Committee’s rules and procedures, which may be changed at any time without

42

 

advance notice to Participants. These rules will cover, among other things, the designation
of multiple and secondary beneficiaries and the selection of trusts as beneficiaries.

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ARTICLE 15

Other Rules On Distributions

     Section 15.01 Lost Payee. The Account of a Participant or beneficiary will be
forfeited if the Committee is unable to locate the person to whom payment is due. The forfeiture
is used to reduce the Affiliated Companies’ future contributions. However, any forfeited Account
will be paid through a special contribution by the Affiliated Companies if the payee is ever found,
unless it has been previously escheated to a state government.

     Section 15.02 Disputes About Payee. If the Committee determines that there is some
uncertainty as to whom any Plan payment is due, the Committee is authorized to delay payment, seek
agreements from the interested parties, make payment to an appropriate judicial forum and allow the
court to determine the identity of the proper payee, and/or take any other necessary or appropriate
steps to protect the Plan and the interested parties.

     Section 15.03 Administrative Delays. If the amount of any payment cannot be
determined by the date it is supposed to be paid, or if it is not possible to make payments on time
because the Committee cannot find the payee, or adequate information is not available to make the
distribution, or the payee has failed to make the applicable elections with the Committee, or
because of other legal, financial or administrative obstacles, payments may be made no later than
60 days after the date payment becomes possible.

     Section 15.04 Facility of Payment. If the Committee deems any person entitled to
receive any payment under the Plan incapable of receiving it because of age, illness or infirmity,
mental incompetency or incapacity of any kind, the Committee may, in its discretion, direct that
payment be made in any one or more of the following manners:

     (a) applying the amount directly for the comfort, support and maintenance of the payee;

     (b) reimbursing any person for any such support supplied by any other person to the
payee;

     (c) paying the amount to a legal representative or guardian or any other person
selected by the Committee on behalf of the payee; or

     (d) depositing the amount in a bank account to the credit of the payee.

     Section 15.05 Incorrect Payment of Benefits. If the Committee determines in its sole
discretion that the Plan made an incorrect payment of benefits, and that a correction is necessary
or desirable under the law, then:

     (a) If the Plan makes an overpayment of the amount of any benefits due any payee under
the Plan, the Plan may recover the amounts either by requiring the payee to return the
excess to the Plan, by reducing any future Plan payments to the payee, or by any other
method that the Committee deems reasonable.

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     (b) If the Plan makes a late payment or an underpayment of the amount of any benefits
due any payee under the Plan, correct payment will be made as soon as reasonably possible
after the late payment or underpayment is discovered.

     Section 15.06 Direct Rollover. A Distributee may elect, at the time and in the manner
prescribed by the Committee, to have any portion of an Eligible Rollover Distribution paid directly
to an Eligible Retirement Plan specified by the Distributee in a Direct Rollover (as those terms
are defined in this Section). This Section is intended only to implement Code Section 401(a)(31)
and is to be construed accordingly.

     (a) Eligible Rollover Distribution: An Eligible Rollover Distribution is any
distribution of all or any portion of the balance to the credit of the Distributee, except
that an eligible rollover distribution does not include:

     (1) any distribution that is one of a series of substantially equal periodic
payments (not less frequently than annually) made for the life (or life expectancy)
of the Distributee or the joint lives (or joint life expectancies) of the
Distributee and the Distributee’s designated beneficiary, or for a specified period
of ten years or more;

     (2) any distribution to the extent the distribution is required under Code
Section 401(a)(9); or

     (3) any distribution made upon hardship of the Distributee.

     (b) Eligible Retirement Plan: An Eligible Retirement Plan is:

     (1) an individual retirement account described in Code Section 408(a),
including a Roth individual retirement account described in Code Section 408A;

     (2) an individual retirement annuity described in Code Section 408(b);

     (3) an annuity plan described in Code Section 403(a);

     (4) a qualified trust described in Code Section 401(a);

     (5) an eligible deferred compensation plan described in Code Section 457(b)
which is maintained by a state, political subdivision of a state, or any agency or
instrumentality of a state or political subdivision of a state; or

     (6) an annuity contract described in Code Section 403(b) that accepts the
Distributee’s Eligible Rollover Distribution.

     However, in the case of an Eligible Rollover Distribution to a beneficiary who is a
designated beneficiary as defined in Code Section 401(a)(9)(E), but is not a surviving
spouse or a former spouse who is an alternate payee under a qualified domestic relations
order as defined in Code Section 414(p), an Eligible Retirement Plan is only an

45

 

individual retirement account or individual retirement annuity that is treated as an
inherited account under Code Section 402(c)(11).

     (c) Distributee: A Distributee includes an Employee or former Employee. In
addition, the Employee’s or former Employee’s surviving spouse and the Employee’s or former
Employee’s spouse or former spouse who is the alternate payee under a qualified domestic
relations order, as defined in Code Section 414(p), are Distributees of distributions they
receive. In addition, a beneficiary who is a designated beneficiary as defined in Code
Section 401(a)(9)(E) is a Distributee with regard to the beneficiary’s interest in the Plan.

     (d) Direct Rollover: A Direct Rollover is a payment by the plan to the Eligible
Retirement Plan specified by the Distributee.

     (e) Direct Rollover of After-Tax Contributions: For purposes of this Section,
no portion of a distribution will fail to be an Eligible Rollover Distribution merely
because the portion consists of After-Tax Contributions, which are not includible in gross
income. After-Tax Contributions, however, may be transferred only to an individual
retirement account or annuity described in Code Section 408(a) or (b) or to a qualified
defined contribution plan described in Code Section 401(a), 403(a) or 403(b) that agrees to
separately account for amounts so transferred, including separately accounting for the
portion of a distribution that is includible in gross income and the portion of a
distribution that is not includible in gross income.

     Section 15.07 Annuity Starting Date.

     (a) In General. The Annuity Starting Date for Plan distributions is the
business day that the distribution is valued and removed from the Participant’s investment
funds.

     (b) Administrative Delay. The Annuity Starting Date is the date described in
(a) even though for administrative reasons payment is delayed until some later date.

     (c) Valuation. The amount of a distribution is determined under the valuation
rules described in other Sections of this Plan. This Section does not modify those rules in
any way.

     Section 15.08 Top Heavy Rules. The top-heavy provisions of Appendix B apply if the
Plan becomes top-heavy.

     Section 15.09 Claims and Issues. From time to time, claims or issues may arise that
involve the Plan, including, among others, claims and issues raised by Participants, those
addressed under any of the Internal Revenue Service’s Employee Plans Compliance Resolution System
programs or similar programs, or those permitted under the terms of a qualified domestic relations
order that complies with Code Section 414(p). The resolution, settlement, or adjudication of these
claims or issues may result in an action that is not expressly permitted under some other section
of the Plan document. Such a procedure, agreement, or order will be respected to the extent that,
as determined in the sole discretion of the Committee, it does not

46

 

result in disqualification of the Plan or violate (or cause the Plan to violate) any
applicable statute, government regulation, or ruling.

     Section 15.10 Annuity Form of Distribution. To the extent required under Code
Sections 401(a)(11) and 417, a married Participant who elects payment of his or her benefits in the
form of a life annuity (if available under the Plan) must receive his or her benefits in the form
of a qualified joint and 50% survivor annuity (“QJSA”) unless the Participant elects another form
of distribution permitted under the Plan, which shall include a single life annuity, or a qualified
optional 75% survivor annuity (“QOSA”), with the written consent of his or her spouse that
satisfies the provisions of Code Section 417(a)(2). The required consent must be signed by the
spouse, contain an acknowledgment by the spouse of the effect of the consent, and be witnessed by a
Plan representative (other than the Participant) or by a notary public. Notwithstanding the
foregoing, spousal consent need not be required if the Committee determines that there is no spouse
because the spouse cannot be located or under other circumstances permitted by regulations under
the Code. The provision for the distribution of any annuity form of distribution may be satisfied
by the application of the Participant’s vested Account balance to purchase an annuity contract from
an insurance company or other annuity provider.

The Committee shall provide to the Participant, within a reasonable period before payment of
benefits commences, a written explanation of the terms and conditions of the QJSA and the QOSA, the
Participant’s right to make, and the effect of, an election to waive the QJSA option and elect
another option, the rights of the Participant’s spouse and the Participant’s right to make, and the
effect of, a revocation of a waiver of the QJSA form of distribution.

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ARTICLE 16

Administration

     Section 16.01 In General. The general administration of the Plan is the
responsibility of the Committee. The Committee is the “plan administrator” under ERISA. In
addition, the Committee and each of its members are “named fiduciaries” of the Plan under ERISA for
all purposes other than investment matters. Committee members and all other Plan fiduciaries may
serve in more than one fiduciary capacity with respect to the Plan.

     Section 16.02 The Committee. The Committee consists of at least three members
appointed by the Compensation Committee. The Committee members serve at the pleasure of the
Compensation Committee, without compensation, unless otherwise determined by the Compensation
Committee.

     Section 16.03 Resignation of Committee Members. A member of the Committee may resign
at any time by delivering a written resignation to the Company and to the Secretary of the
Committee. The member’s resignation will be effective as of the date of delivery or, if later, the
date specified in the notice of resignation.

     Section 16.04 Conduct of Business. The Compensation Committee will appoint a Chairman
from among the members of the Committee and a Secretary who may or may not be a member of the
Committee. The Committee will conduct its business in accordance with this Article and the current
edition of Robert’s Rules of Order or other rules that the Committee deems appropriate. The
Committee will hold meetings from time to time in any convenient location.

     Section 16.05 Quorum. A majority of all of the members of the Committee constitutes a
quorum and has power to act for the entire Committee.

     Section 16.06 Voting. All actions taken shall be by majority vote of the members
attending a meeting, whether physically present or through remote communications. In addition,
actions may be taken by written consent of a majority of the Committee members without a meeting.
The agreement or disagreement of any member may be by means of any form of written or oral
communications.

     Section 16.07 Records and Reports of the Committee. The Committee will keep written
records as it deems necessary or proper, which records will be open to inspection by the
Compensation Committee.

     Section 16.08 Powers of the Committee. The Committee has all powers necessary or
incident to its office as plan administrator. Its powers include, but are not limited to, full
discretionary authority to:

     (a) Prescribe rules for the operation of the Plan.

     (b) Determine eligibility.

48

 

     (c) Comply with the requirements of reporting and disclosure under ERISA and any other
applicable law and to prepare and distribute other communications to Employees as part of
Plan operations.

     (d) Prescribe forms to facilitate the operation of the Plan.

     (e) Secure government approvals for the Plan.

     (f) Construe and interpret the terms of the Plan, including the power to remedy
possible ambiguities, inconsistencies or omissions.

     (g) Determine the amount of benefits and authorize payments from the Trust Fund.

     (h) Maintain records.

     (i) Litigate, settle claims, and respond to and comply with court proceedings and
orders on the Plan’s behalf.

     (j) Enter into contracts on the Plan’s behalf.

     (k) Take all measures it deems reasonably necessary or desirable to properly administer
the Plan, including institution of black-out periods during which some or all ordinary Plan
administration functions will be suspended.

     (l) Exercise all other powers given to the Committee under other Sections of the Plan.

     Section 16.09 Allocation or Delegation of Duties and Responsibilities. The Committee
and the Compensation Committee may:

     (a) Employ agents to carry out nonfiduciary responsibilities.

     (b) Employ agents to carry out fiduciary responsibilities (other than trustee
responsibilities as defined in ERISA Section 405(c)(3)) under the rules of the next Section.

     (c) Consult with counsel, who may be of counsel to the Company.

     (d) Provide for the allocation of fiduciary responsibilities (other than trustee
responsibilities as defined in ERISA Section 405(c)(3)) among their members under the rules
of the next Section.

     (e) In particular, designate one or more Employees to have responsibility for designing
and implementing administrative procedures for the Plan.

49

 

     Section 16.10 Procedure for the Allocation or Delegation of Fiduciary Duties.

     (a) Any allocation or delegation of fiduciary responsibilities must be approved by
majority vote, in a resolution approved by the majority;

     (b) The vote cast by each member for or against the adoption of such resolution must be
recorded and made a part of the written record of the proceedings;

     (c) Any delegation or allocation of fiduciary responsibilities may be changed or ended
only under the rules of (a) and (b) of this Section.

     Section 16.11 Expenses of the Plan. All reasonable and proper expenses of
administration of the Trust Fund, including counsel fees, will be paid out of the Trust Fund unless
paid by the Affiliated Companies.

     (a) No expenses may be withdrawn without the consent of the Committee. The Committee
may authorize the Trustee to withdraw particular expenses or kinds of expenses on a standing
basis.

     (b) The Affiliated Companies may initially pay any expense that normally would be
charged to the Trust Fund and later obtain reimbursement from the Trust Fund.

     (1) This even applies if, at the time of the Affiliated Companies’ initial
payment of the expense, it is not clear that the Affiliated Companies may lawfully
seek reimbursement from the Trust Fund but the Affiliated Companies’ legal right to
reimbursement is later clarified.

     (2) It is specifically anticipated that there may be situations, such as
litigation, where the Affiliated Companies might choose to bear costs initially, but
later obtain reimbursement many years after the costs were incurred. These delayed
reimbursements are permissible.

     (c) Expenses will be withdrawn from the Trust Fund in accordance with rules and
procedures established by the Committee, which rules and procedures may be changed at any
time without advance notice to Participants. These rules and procedures may include:

     (1) Charging expenses against the investment return of one or more Plan
investment funds, even if the fund has a negative return;

     (2) Charging fees against any other accounts, including contribution,
distribution or forfeiture accounts;

     (3) The imposition of percentage and/or flat dollar fees for any feature or
aspect of the Plan, including for example, initiation of loans or participation in
particular investment options; or

     (4) Any other method or means for recovering expenses.

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     Section 16.12 Indemnification. The Company agrees to indemnify and reimburse, to the
fullest extent permitted by law, members of the Board, the Committee and Employees acting for the
Affiliated Companies, as well as former members and former Employees, for any and all expenses,
liabilities, or losses arising out of any act or omission relating to the rendition of services for
or the management and administration of the Plan, except in instances of gross misconduct.

     Section 16.13 Extensions of Time Periods. For good cause shown, the Committee may
extend any period provided in the Plan for taking any action required of any Participant or
beneficiary to the extent permitted by law.

     Section 16.14 Corrections Involving Participant Direction. If the Committee
determines in its sole discretion that the Plan failed to properly follow a Participant’s election
or direction and that a correction is necessary or desirable under the law, that correction will be
made as soon as reasonably possible after the error is discovered.

     (a) Contribution Election. If a Participant’s contribution election is not
followed correctly, corrections may be made by adjusting the amount of contributions
withheld from the Participant’s future paychecks. Adjusted contributions under this Section
may be made in fractional percentages of a Participant’s Compensation.

     (b) Investment Direction. If a Participant’s investment or transfer direction
is not followed correctly, the Participant’s account will be adjusted to the position it
would have been in had the direction been correctly followed. The adjustment shall be made
in accordance with the rules and actuarial and investment assumptions determined in the sole
discretion of the Committee.

     Section 16.15 Claims and Appeals; Time Limitations; Exhaustion of Remedies. All
claims and appeals related to benefits under the Plan shall be governed by the terms of Article 6
in the Standard Definitions and Procedures for Certain Huntington Ingalls Industries, Inc.
Retirement Plans.

     Section 16.16 Qualified Domestic Relations Orders. The Committee will establish rules
and procedures for handling domestic relations orders, including procedures allowing the Plan to
charge individual Participants and alternate payees for expenses associated with handling domestic
relations orders. These rules and procedures may be changed at any time without advance notice to
Participants.

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ARTICLE 17

Management of Funds

     Section 17.01 The Trust. All assets of the Plan will be held as a special trust in
accordance with the terms of the Trust Agreement for the benefit of Participants and their
beneficiaries. Subject to Article 20, no part of the Plan’s assets may be used for or diverted to
purposes other than for the exclusive benefit of Participants or their beneficiaries before the
satisfaction of all liabilities (as defined in Code Section 401(a)(2)), except to the extent
permitted by law. No person will have any interest in, or right to, any trust assets or earnings,
except as expressly provided in the Plan and the Trust Agreement. The Trust Agreement forms a part
of this Plan, and all rights and benefits that may accrue to any person under this Plan are subject
to the Trust Agreement.

     Section 17.02 The Trustee. The Board will appoint the Trustee in accordance with the
Trust Agreement with powers as may be provided in that agreement. The Board may remove the Trustee
at any time with reasonable notice. Upon removal or resignation of the Trustee, the Board will
designate a successor to replace the removed or resigning Trustee.

     Section 17.03 Trust Agreement. To provide for the administration of the Trust Fund,
the Company will enter into a Trust Agreement with a Trustee appointed by the Board. The Company
may determine the form and content of the Trust Agreement, which may include, but will not be
limited to, provisions concerning the powers and authority of the Trustee, the authority of the
Company to amend the Trust Agreement and to terminate the Trust Fund, the authority of the Company
and the Committee to settle the accounts of the Trustee on behalf of all persons having an interest
in the Trust Fund, a provision that it will be impossible for any part of the corpus or income of
the Trust Fund to be (within the taxable year or thereafter) used for or diverted to purposes other
than for the exclusive benefit of Participants or their beneficiaries, except as provided in
Article 20 or as may be permitted by law.

     Section 17.04 Huntington Ingalls Industries, Inc. Stock. Huntington Ingalls
Industries, Inc. stock held in the Huntington Ingalls Industries Fund for this Plan will be voted
in accordance with the terms of the ESOP and may be tendered for sale in accordance with the ESOP.

     Section 17.05 The Investment Committee. The Investment Committee will consist of not
less than three persons appointed from time to time by, and to serve at the pleasure of, the Board.
The Investment Committee is the “named fiduciary” for investment matters under the Plan. The
members of the Investment Committee will elect one of their number as Chairman and appoint a
Secretary and other officers as the Investment Committee may deem necessary. The Investment
Committee may employ counsel, including investment counsel, as it may require in carrying out its
duties under the Plan.

     Section 17.06 Alternate Members. The Board may from time to time appoint one or more
persons as alternate members of the Investment Committee to serve in the absence of members of the
Investment Committee, in the manner stated below, with the same effect as if they were members.
The Chairman of the Investment Committee, in his or her discretion, will designate which of the
alternate members may attend any particular meeting of the Investment

52

 

Committee to obtain a quorum or full attendance as the Chairman may elect, upon notice given
by the Chairman or at his or her direction. Each alternate member will have all the rights,
powers, and obligations of a member concerning the business of meetings that he or she attends.

     Section 17.07 Actions by the Investment Committee. The majority in number of the
members of the Investment Committee at the time in office, represented at a meeting by members or
alternate members or both, will constitute a quorum for the transaction of business. Any
determination or action of the Investment Committee may be made or taken by a majority of a quorum
present at any meeting thereof, or without a meeting, by resolution or written memorandum signed by
a majority of the members then in office.

     Section 17.08 Investment Responsibilities.

     (a) The Trustee has exclusive authority and discretion to manage, control, purchase,
sell, and invest the assets of the Plan, unless one or more Investment Managers are
appointed, as provided below.

     (b) The Board may, in its discretion, appoint one or more Investment Managers who will
have, until terminated by the Board, the power to manage, acquire, and dispose of all or any
part of the assets of the Plan allocated to an Investment Manager by the Board. Each
Investment Manager other than the Investment Committee must represent in writing that it
qualifies under ERISA Section 3(38)(B) and acknowledge in writing that it is a fiduciary of
the Plan. Under those circumstances, the Trustee will have no obligation to invest or
otherwise manage any asset of the Plan that is subject to an Investment Manager’s
management.

     (c) If investment powers are divided among two or more Trustees or Investment Managers,
the Board will formulate investment policies for the Trustees and Investment Managers to
diversify the investments of the Plan to minimize the risk of large losses, unless under the
circumstances it is clearly prudent not to do so.

     (d) The Investment Committee will periodically review and evaluate the investment
performance of each Trustee and Investment Manager and advise the Board of its review and
evaluation. The Board may delegate to the Investment Committee the responsibility to
appoint and terminate Trustees and Investment Managers, to allocate Plan assets, to
formulate investment policies, and to instruct the Trustee or Investment Manager
accordingly. In case of such a delegation, the Investment Committee may also appoint itself
to serve as an Investment Manager.

     (e) The Investment Committee will establish a funding policy and method to carry out
the Plan’s objectives and will communicate it to those responsible for investing Plan
assets.

     Section 17.09 Liability and Indemnity.

     (a) No person, Committee member, Investment Committee member, Trustee, or Investment
Manager who has a fiduciary responsibility, or to whom such responsibility is allocated, as
provided in this Article, by appointment or otherwise, will

53

 

be liable for any act or omission or investment policy of any other fiduciary except as
provided in ERISA Section 405.

     (b) To the extent permitted by law, the Employers will indemnify and hold harmless
their directors, officers, and Employees concerning their responsibilities under this
Article. The Employers may purchase insurance to cover the liabilities of those persons for
breach of fiduciary duty and any other error or omission.

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ARTICLE 18

Amendment and Termination

     Section 18.01 Right to Amend the Plan. The Company’s right to amend the Plan is
provided in Article 5 of the Standard Definitions and Procedures for Certain Huntington Ingalls
Industries, Inc. Retirement Plans, which Article is incorporated herein by reference.

     Section 18.02 Termination or Reduction. The Company maintains the Plan voluntarily.

     (a) The Company reserves the right at any time to terminate the Plan or to suspend,
reduce or partially or completely discontinue contributions to the Plan through written
resolution of the Board.

     (b) If the Company, in its discretion, terminates or completely discontinues
contributions to the Plan (as defined under Code Section 411(d)(3)), the interests of all
Participants in their Accounts will be fully vested and nonforfeitable.

     (c) Distributions may be made only if the Plan is completely terminated and only to the
extent permitted by the tax rules governing the Plan.

     (d) This Section does not apply to partial terminations.

     Section 18.03 Partial Terminations. The Company reserves the right at any time to
partially terminate the Plan through written resolution of the Board.

     (a) If the Company in its discretion determines that a partial termination of the Plan
has occurred (as described in Code Section 411(d)(3) and Treasury Regulation Section
1.411(d)-2(b)), the rights of Participants affected by the partial termination will
automatically become fully vested, but only to the extent required by statute and
regulation.

     (b) If the Company in its discretion determines that a horizontal partial termination
has occurred (as described in Treasury Regulation Section 1.411(d)-2(b)(2)), only that
portion of a Participant’s benefit (if any) that is affected by the horizontal partial
termination will become vested.

     (c) No amounts will be distributed on account of a partial termination.

     (d) Nothing in this Plan is intended to give any rights greater than those required by
statute or regulation concerning partial terminations.

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ARTICLE 19

Mergers

     Section 19.01 Merger of Plans. If the Plan merges or consolidates with, or transfers
its assets or liabilities to, any other plan, then, to the extent required by ERISA, each
Participant is entitled to receive a benefit immediately after the merger, consolidation or
transfer (assuming that the Plan had then terminated) that is equal to or greater than the benefit
to which he or she would have been entitled immediately before the merger, consolidation or
transfer (assuming that the Plan had then terminated).

     (a) This Section is intended only to implement Code Sections 401(a)(12) and 414(l) and
ERISA Section 208. It does not require anything more than those statutes require.

     (b) In particular, a merger or transfer under this Section does not require any act or
change in status that would be required by an actual termination, such as liquidation of the
Trust Fund.

     (c) This Section does not guarantee the value of Accounts at the same level as
immediately before a merger or transfer. Accounts may decrease in value following a merger
or transfer just as in the ordinary course, and the risk of any decreases remains on the
Participants.

56

 

ARTICLE 20

Return of Contributions

     Section 20.01 In General. Unless one of the exceptions in the next Section applies,
ERISA requires that the Trust Fund be used for the exclusive benefit of Participants and their
beneficiaries and to pay reasonable Plan expenses.

     Section 20.02 Exceptions. If any contribution is made:

     (a) by a mistake of fact, or

     (b) conditioned on its deductibility (all contributions are conditioned on their
deductibility) and that contribution is not deductible in the taxable year of the
contribution under Code Section 404,

the contribution will be returned to the Affiliated Companies within one year after the date of
payment by mistake or the date of disallowance, whichever applies.

57

 

ARTICLE 21

Miscellaneous

     Section 21.01 Headings. The headings and subheadings in this Plan have been inserted
for convenience of reference only. If a heading and the content of a section conflict, the content
of the section controls.

     Section 21.02 Construction. Except to the extent preempted by federal law in
accordance with ERISA, this Plan is construed in accordance with the laws of the State of
California.

     Section 21.03 No Employment Rights. Nothing in this Plan confers upon any Employee
any right to be retained in the service of the Affiliated Companies or to interfere with the right
of the Affiliated Companies to otherwise deal with their Employees without regard to the existence
of the Plan.

     Section 21.04 Limitation to Trust Fund. The Affiliated Companies have no liability
for benefits under the Plan beyond the contributions required by the Plan’s terms. Nothing in the
Plan gives any Participant or beneficiary any right to assets of the Affiliated Companies, and all
Plan benefits are limited to the amounts in the Trust Fund. The Affiliated Companies, the
Committee and the Investment Committee do not guarantee the Trust Fund in any manner against loss
or depreciation and do not guarantee the payment of any benefit that may become due under the Plan.

     Section 21.05 Separability. If any provision of the Plan is held invalid or
unenforceable, the invalidity or unenforceability will not affect any other provision of the Plan,
and the Plan will be construed and enforced as if that provision had not been included.

* * *

58

 

     IN WITNESS WHEREOF, Huntington Ingalls Industries, Inc. has caused this amended and restated
Plan to be executed by its duly authorized representative on this 30th day of March, 2011.

	 	 	 	 	 
	 	HUNTINGTON INGALLS INDUSTRIES, INC.

 	 
	 	By:  	/s/ William Ermatinger
 	 
	 	 	William Ermatinger 	 
	 	 	Vice President and Chief Human Resources Officer 	 
	 

59

 

APPENDIX A

Section 415 Limits

     Section A.01 In General. Annual additions under this Plan are subject to the
limitations of Code Section 415 and its regulations, which are incorporated here by reference.

     Section A.02 Reductions Among Defined Contribution Plans. If a Participant
participates in another defined contribution plan and the total Annual Additions on his or her
behalf under all defined contribution plans sponsored by the Company exceed the limitations under
Code Section 415, the Employer may elect, consistent with Treasury Regulation Section
1.415(g)-1(b)(3)(iii), to treat the other defined contribution plan as causing a violation under
Code Section 415, subject to the correction methods permitted thereunder.

     Section A.03 Compensation. For purposes of this Appendix, the term “Compensation”
means all amounts paid to the Employee by the Affiliated Companies that are treated as
“Compensation” under Code Section 415(c)(3). “Compensation” includes elective amounts that are not
includible in the gross income of the Employee by reason of section 132(f)(4) .

     Section A.04 Annual Additions. Annual additions are, for any Limitation Year,

     (a) the sum, credited to a Participant for the Limitation Year under plans of the
Special Aggregation Group, of:

     (1) Employer contributions allocated to an account,

     (2) Employee contributions,

     (3) Forfeitures allocated to an account,

     (4) Contributions to individual medical accounts described in Code Section
415(l)(1),

     (5) Contributions to individual medical accounts described in Code Section
419A(d)(2).

     (b) Amounts described in (a)(1)-(4) include any amounts under a qualified defined
contribution or defined benefit plan.

     (c) For purposes of this Section, “employee contributions” do not include:

     (1) Rollover contributions;

     (2) Loan repayments;

     (3) Buyback repayments under Code Section 411(a)(3)(D) or 411(a)(7)(C); or

     (4) Direct transfers of employee contributions from one qualified plan to
another.

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     Section A.05 Limitation Year. The limitation year specified in a plan. But if none
is specified, the limitation year is the calendar year.

     Section A.06 Special Aggregation Group. The Affiliated Companies plus any entity that
is, or that is part of an entity that is:

     (a) a member of a controlled group of corporations (within the meaning of Code Section
414(b)) with the Company,

     (b) under common control (under Code Section 414(c)) with the Company,

     (c) aggregated with the Company under Code Section 414(m) or (o).

Under this Section, the phrase “more than 50 percent” is substituted for the phrase “at least 80
percent” each time it appears in Code Section 1563(a)(1).

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APPENDIX B

Top Heavy Provisions

     Section B.01 Generally. This Appendix only applies if the Plan becomes Top-Heavy.
The rules in this Appendix are intended to conform to Code Section 416.

     Section B.02 Eligibility for Required Contributions. For any Plan Year in which the
Plan is Top Heavy, the required contributions described in Section B.03 will be provided under this
Plan to any Employee who meets the requirements of (a) and (b):

     (a) The Employee is not a Key Employee.

     (b) The Employee has previously become a Participant in the Plan and has not separated
from service by the end of the Plan Year, with the determination of whether or not an
Employee is a participant for purposes of this Section to be made without regard to whether
or not the Employee:

     (1) failed to complete 1000 Hours of Service during the Plan Year;

     (2) would otherwise be excluded from participation (or receives no
contributions or less than a full contribution) because of a failure to make
mandatory Employee contributions (or elective deferrals); or

     (3) would otherwise be excluded from participation (or receives no
contributions or less than a full contribution) because his or her earnings are less
than a stated amount.

     Section B.03 Required Contribution. The required contribution under this Section is:

     (a) An employer contribution equal to the employer contribution to be provided under
this Plan without regard to this Appendix, increased by the Top-Heavy Minimum under Section
B.04 or B.05, whichever applies.

     (b) References to “employer contributions” in this Appendix include amounts
attributable to forfeitures, but do not include amounts attributable to a salary reduction
or similar arrangement.

     Section B.04 Top-Heavy Minimum. Unless Section B.05 applies, the Top-Heavy Minimum is
determined under (a) as modified by (b).

     (a) The amount of the minimum employer contribution is the lesser of the following
percentages of Compensation:

     (1) Three percent, or

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     (2) The highest percentage at which employer contributions are made under the
Plan for the Plan Year on behalf of a Key Employee.

     (A) For purposes of this paragraph (2), all defined contribution plans
required to be included in an Aggregation Group are treated as one plan.

     (B) This paragraph (2) does not apply if the Plan is required to be
included in an Aggregation Group and the Plan enables a defined benefit plan
required to be included in the Aggregation Group to meet the requirements of
Code Sections 401(a)(4) or 410.

     (C) For purposes of this paragraph (2), the percentage at which
contributions are made for a Key Employee is calculated based only on his or
her Compensation.

     (D) For purposes of this paragraph (2), pre-tax salary deferral
contributions made by a Key Employee are treated as employer contributions.

     (b) The Top-Heavy Minimum of this Section is reduced by the amount of Nonintegrated
employer contributions and employer matching contributions (as defined in Code Section
401(m)(4)) otherwise made on the Employee’s behalf under this Plan and all other defined
contribution plans of the Affiliated Companies.

     Section B.05 Participants Under Defined Benefit Plans. For any Plan Year in which the
Plan is Top-Heavy, if any Employee for whom a contribution is required under Section B.02 for the
Plan Year would also be eligible for a top-heavy minimum benefit for a corresponding plan year (as
defined in (d)) under a defined benefit plan of the Affiliated Companies (before this Section is
applied), then:

     (a) This Section rather than Section B.04 applies to the Employee for the Plan Year,
and

     (b) The Top-Heavy Minimum is a Nonintegrated employer contribution for the Employee for
the Plan Year equal to 5% of the Employee’s Compensation (without regard to profits and
without regard to the amount of contributions, if any, made to defined contribution plans on
behalf of Key Employees).

     (c) The Top-Heavy Minimum in (b) will be reduced by the amount of Nonintegrated
employer contributions and employer matching contributions (as defined in Code Section
401(m)(4)) otherwise made on the Employee’s behalf under this Plan and all other defined
contribution plans of the Affiliated Companies.

     (d) The corresponding plan year is determined as follows:

     (1) Ascertain the Determination Date for this Plan utilized to determine that
this Plan is Top-Heavy for the relevant year.

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     (2) Next ascertain the Determination Date for the defined benefit plan that was
aggregated with the Determination Date in (d)(1) under the provisions of Section
B.12.

     (3) The corresponding plan year for the defined benefit plan is the plan year
for which the defined contribution plan was determined to be Top-Heavy on the basis
of the Determination Date ascertained in (d)(2).

     Section B.06 Leased Employees. Leased Employees are not considered “Employees” under
this Appendix unless they are eligible to participate under the terms of the Plan.

     Section B.07 Determination of Top Heaviness. The determination of whether a plan is
Top-Heavy is made as follows:

     (a) If the Plan is not required to be included in an Aggregation Group with other
plans, then it is Top-Heavy only if:

     (1) when considered by itself, it is a Top-Heavy Plan, and

     (2) it is not included in a permissive Aggregation Group that is not a
Top-Heavy Group.

     (b) If the Plan is required to be included in an Aggregation Group with other plans, it
is Top-Heavy only if the Aggregation Group, including any permissively aggregated plans, is
Top-Heavy.

     (c) If a plan is not a Top-Heavy Plan and is not required to be included in an
Aggregation Group, then it is not Top-Heavy even if it is permissively aggregated in an
Aggregation Group that is a Top-Heavy Group.

     Section B.08 Calculation of Top-Heavy Ratios. A plan is Top-Heavy and an Aggregation
Group is a Top-Heavy Group for any plan year if the sum as of the Determination Dates of the
Cumulative Accrued Benefits and the Cumulative Accounts of Special Members who are Key Employees
for the plan year exceeds 60% of a similar sum determined for all Special Members, excluding
Cumulative Accrued Benefits and Cumulative Accounts of former Key Employees from the calculations
entirely.

     Section B.09 Cumulative Accounts and Cumulative Accrued Benefits. The Cumulative
Accounts and Cumulative Accrued Benefits for any Employee are determined as follows:

     (a) “Cumulative Account” means the sum of the amounts of a Special Member’s accounts
under a defined contribution plan (for an unaggregated plan) or under all defined
contribution plans included in an Aggregation Group (for aggregated plans) determined as of
the most recent plan valuation date within a 12-month period ending on the Determination
Date, increased by:

64

 

     (1) For plans not subject to the minimum funding requirements of Code Section
412, except for the first plan year, amounts actually contributed after the
valuation date and on or before the Determination Date.

     (2) For plans not subject to the minimum funding requirements of Code Section
412, for the first plan year, the contributions referred to in (1) as well as
amounts contributed after the Determination Date but allocated as of a date within
the first plan year.

     (3) For plans subject to the minimum funding requirements of Code Section 412,
amounts that would be allocated as of a date after the valuation date but no later
than the Determination Date (even though not then required to be contributed) and
amounts contributed or due before the expiration of the Code Section 412(c)(10)
extended payment period.

     (b) “Cumulative Accrued Benefit” means the sum of the present value of a Special
Member’s accrued benefits under a defined benefit plan (for an unaggregated plan) or under
all defined benefit plans included in an Aggregation Group (for aggregated plans),
determined under the actuarial assumptions provided in the plan or plans, as of the most
recent plan valuation date within a 12-month period ending on the Determination Date as if
the participant voluntarily terminated service—

     (1) as of the Determination Date, for the first plan year of the plan, or

     (2) for any other plan year, as of the most recent valuation date within the
12-month period ending on the Determination Date, or

     (3) if earlier, the participant’s actual termination date.

     The valuation date used must be the same valuation date used for computing costs for
minimum funding purposes, regardless of whether a valuation is performed for the year.

     (c) Accounts and benefits are calculated to include all amounts attributable to both
employer and Employee contributions and forfeitures but excluding amounts attributable to
voluntary deductible Employee contributions.

     (d) Accounts and benefits are increased by the aggregate distributions (except for
amounts already included at the valuation date under (a) and (b)) during the Test Period
made for a Special Member under the plan or plans as the case may be or under a terminated
plan that, if it had not been terminated, would have been required to be included in the
Aggregation Group. For distributions made for a reason other than separation from service,
death, or disability, this provision is applied by substituting “5-year period ending on the
Determination Date” for “Test Period.”

65

 

     (e) Rollovers and direct plan-to-plan transfers are treated as follows:

     (1) If the transfer is initiated by the Special Member and made from a plan
maintained by an employer not a member of the Affiliated Companies to a plan
maintained by the Affiliated Companies, or vice-versa, the transferring plan
continues to count the amount transferred under the rules for counting
distributions. The receiving plan does not count the amount if accepted after
December 31, 1983, but does count it if accepted before January 1, 1984.

     (2) If the transfer is not initiated by the Special Member or is made between
plans maintained by the Affiliated Companies, the transferring plan no longer counts
the amount transferred and the receiving plan does count the amount transferred.

     (f) The accrued benefits and accounts attributable to any Employee who has not
performed services for the Affiliated Companies at any time during the Test Period are not
taken into account.

     (g) Benefits paid on account of death are counted as distributions only to the extent
they do not exceed the present value of accrued benefits existing immediately before death.
For life insurance under defined contribution plans, only the cash value of life insurance
policies distributed on account of death are counted as a distribution.

     (h) Solely for determining whether the Plan, or any other plan included in a required
Aggregation Group of which this Plan is a part, is Top-Heavy, the accrued benefit of a
Special Member other than a Key Employee is determined under:

     (1) The method, if any, that uniformly applies for accrual purposes under all
plans maintained by the Affiliated Companies, or

     (2) If there is no such method, as is described in (1), as if the benefit
accrued not more rapidly than the slowest accrual rate permitted under the
fractional accrual rule of Code Section 411(b)(1)(C).

     (i) Calculations are made separately for each plan as of each plan’s Determination Date
and then all plans are combined by utilizing the Determination Dates for plans that fall
within the same calendar year.

     Section B.10 Other Definitions. The definitions in Sections B.11-B.20 apply under
this Appendix.

     Section B.11 Affiliated Companies. The Company and any entity that is or that is a
part of an entity that is:

     (a) a member of a controlled group of corporations (under Code Section 414(b)) with the
Company,

     (b) under common control (under Code Section 414(c)) with the Company,

66

 

     (c) a member of an affiliated service group (under Code Section 414(m)) with the
Company, or

     (d) otherwise required to be aggregated with the Company under regulations under Code
Section 414(o).

     Section B.12 Aggregation Group. For any Determination Date, the Aggregation Group
includes a plan or group of plans qualified under Code Section 401(a), 403(a) or 408(k) maintained
by the Affiliated Companies (including plans that terminated within the Test Period) that:

     (a) during the Test Period, had a Key Employee participant, or

     (b) during the Test Period, enabled any plan in which a Key Employee was a participant
to meet the requirements of Code Section 401(a)(4) or Code Section 410, or

     (c) were selected by the Company for permissive aggregation (provided that inclusion of
the permissive plans would not prevent the entire group of plans from continuing to meet the
requirements of Code Sections 401(a)(4) and 410).

     Section B.13 Compensation. For purposes of this Appendix, the term “Compensation”
means all amounts paid to the Employee by the Affiliated Companies that are treated as
“Compensation” under Code Section 415(c)(3).

     Section B.14 Determination Date. For any plan year, the term “Determination Date”
means:

     (a) the last day of the preceding plan year, or

     (b) for the first plan year of the plan, the last day of the plan year.

     Section B.15 Hour of Service. An Hour of Service is determined under the following
rules and under Department of Labor Regulations at 29 CFR Section 2530.200b-2, which are
incorporated into this Plan by reference:

     (a) An Hour of Service is each hour for which an Employee is paid, or entitled to
payment, for the performance of duties for the Affiliated Companies during the applicable
computation period.

     (b) An Hour of Service is each hour for which an Employee is paid, or entitled to
payment by the Affiliated Companies on account of a period of time during which no duties
are performed (irrespective of whether the employment relationship has terminated) due to
vacation, holiday, illness, incapacity (including disability), lay-off, jury duty, military
duty or leave of absence. Notwithstanding the preceding sentence:

     (1) No more than 501 Hours of Service are required to be credited under (b) to
an Employee on account of any single continuous period during

67

 

which the Employee performs no duties (whether or not such period occurs in a
single computation period); and

     (2) An hour for which an Employee is directly or indirectly paid, or entitled
to payment, on account of a period during which no duties are performed is not
required to be credited to the Employee if such payment is made or due under a plan
maintained solely for the purpose of complying with applicable workmen’s
compensation, or unemployment compensation or disability insurance laws; and

     (3) Hours of Service are not required to be credited for a payment which solely
reimburses an Employee for medical or medically related expenses incurred by the
Employee.

     (c) For purposes of (b), a payment is deemed to be made by or due from the Affiliated
Companies regardless of whether the payment is made by or due from the Affiliated Companies
directly, or indirectly through, among others, a trust, fund, or insurer to which the
Affiliated Companies contribute or pay premiums and regardless of whether contributions made
or due to the trust, fund, insurer or other entity are for the benefit of particular
Employees or are on behalf of a group of Employees in the aggregate.

     (d) An Hour of Service is each hour for which back pay, irrespective of mitigation of
damages, is either awarded or agreed to by the Affiliated Companies. The same Hours of
Service may not be credited both under (a) or (b), as the case may be, and under this
subsection (d). Thus, for example, an Employee who receives a back pay award following a
determination that he or she was paid at an unlawful rate for hours of service previously
credited will not be entitled to additional credit for the same hours of service. Crediting
of Hours of Service for back pay awarded or agreed to for periods described in (b) is
subject to the limitations in that subsection. For example, no more than 501 Hours of
Service are required to be credited for payments of back pay, to the extent that the back
pay is agreed to or awarded for a period during which an Employee did not or would not have
performed duties.

     Section B.16 Key Employee. Any Special Member who is or was, at any time during the
Test Period, described in (a), (b) or (c).

     (a) Subject to (1) and (2), an officer of the Employer having annual Compensation
greater than $160,000, as adjusted under Code Section 416(i)(1).

     (1) The maximum number of officers is the lesser of:

     (A) Fifty, or

     (B) The greater of (i) three or (ii) 10 percent (rounded to the next
highest integer) of the greatest number of Employees who performed services
for the Affiliated Companies in the Test Period.

68

 

     (2) The following are not “officers” for purposes of this Section:

     (A) Employees described in Code Section 414(q)(5).

     (B) Employees and officers of entities referred to in Code Section
414(d).

     (b) An Employee who owns (or is treated as owning under Code Section 318) more than
five percent of the outstanding stock of any member of the Affiliated Companies or stock
possessing more than five percent of the total combined voting power of that stock.

     (c) An Employee who would be described in (b) above if “one percent” were substituted
for “five percent” and who has annual pay of more than $150,000 for the Plan Year of
ownership.

     (d) For purposes of determining ownership under this Section, Code Section 318(a)(2)(C)
are applied by substituting “five percent” for “50 percent,” and Code Sections 414(b), (c),
(m), and (o) do not apply.

     Section B.17 Limitation Year. The calendar year.

     Section B.18 Nonintegrated. A “Nonintegrated” benefit means a benefit determined
without taking into account contributions or benefits under Code Chapter 2 (relating to tax on
self-employment income), Code Chapter 21 (relating to the Federal Insurance Contributions Act),
title II of the Social Security Act, or any other federal or state law.

     Section B.19 Special Member. For purposes of this Appendix, a “Special Member” is any
person employed or formerly employed by the Affiliated Companies and any beneficiary of any such
person, provided that the requirements of Sections B.02-B.05 do not apply to any person included in
a unit of Employees covered by an agreement the Secretary of Labor finds (in accordance with the
rules of Code Section 7701(b)) to be a collective bargaining agreement between Employee
representatives and one or more members of the Affiliated Companies if there is evidence that
retirement benefits were the subject of good faith bargaining between the Employee representatives
and the member or members of the Affiliated Companies.

     Section B.20 Test Period. The plan year containing the Determination Date concerned.

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APPENDIX C

The 401(k) and 401(m) Tests

     Section C.01 In General. This Appendix describes the limitations imposed by the
federal tax laws on contributions that may be made to the Plan on behalf of Highly Compensated
Participants. This Appendix is intended solely to implement the requirements of Code Sections
401(k) and (m).

     Section C.02 The 401(k) Test. Sections C.03-C.07 implement the nondiscrimination
requirements in Code Section 401(k) and the regulations under that section, which are incorporated
here by reference.

     Section C.03 K Percentage. This term means the average of the K Ratios, calculated
separately for each Participant in a group. The K Ratio is the amount of all Tax-Deferred
Contributions and Roth Contributions made to a Participant’s Account for a Plan Year, plus the
“qualified matching contributions” and the “qualified nonelective contributions” treated by the
Committee as Tax-Deferred Contributions, divided by the Participant’s Compensation for that Plan
Year.

     (a) Qualified Matching Contributions And Qualified Nonelective Contributions.

     (1) Qualified Matching Contributions. The term “qualified matching
contributions” means matching contributions that satisfy the additional requirements
of (3).

     (2) Qualified Nonelective Contributions. The term “qualified
nonelective contributions” means employer contributions, other than elective
contributions and matching contributions, that satisfy the additional requirements
of (3).

     (3) Additional Requirements. Except to the extent that Treasury
Regulation Section 1.401(k)-1(c) and (d) specifically provide otherwise, the
matching contributions and the nonelective contributions must satisfy the
requirements of Treasury Regulation Section 1.401(k)-1(c) and (d) as though the
contributions were elective contributions, without regard to whether the
contributions are actually taken into account as elective contributions under
paragraph (b)(2) of this Section. Thus, the matching and nonelective contributions
must satisfy the vesting requirements of Treasury Regulation Section 1.401(k)-1(c)
and be subject to the distribution requirements of Treasury Regulation Section
1.401(k)-1(d) when they are contributed to the Plan.

     (b) Qualified Nonelective Contributions And Qualified Matching Contributions That
May Be Taken Into Account Under The Actual Deferral Percentage Test. All or part of the
qualified nonelective contributions and qualified matching contributions made for any or all
Employees who are Eligible Employees under the Plan may be treated as elective
contributions, provided that each of the following requirements (to the extent applicable)
is satisfied:

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     (1) The amount of nonelective contributions, including those qualified
nonelective contributions treated as elective contributions for purposes of the
actual deferral percentage test, satisfies the requirements of Code Section
401(a)(4). See Treasury Regulation Section 1.401(a)(4)-1(b)(2).

     (2) The amount of nonelective contributions, excluding those qualified
nonelective contributions treated as elective contributions for purposes of the
actual deferral percentage test and those qualified nonelective contributions
treated as matching contributions for purposes of the actual contribution percentage
test, satisfies the requirements of Code Section 401(a)(4). See Treasury Regulation
Section 1.401(a)(4)-1(b)(2).

     (3) The qualified nonelective contributions and qualified matching
contributions satisfy the requirements of Treasury Regulation Section
1.401(k)-2(a)(4)(i)(A) for the Plan Year as if the contributions were elective
contributions.

     (4) The Plan and the plan or plans to which the qualified nonelective
contributions and qualified matching contributions are made, could be aggregated
under Treasury Regulation Section 1.410(b)-7(d) after application of the mandatory
disaggregation rules of Treasury Regulation Section 1.410(b)7(c), as modified in
Treasury Regulation Section 1.401(k)-1(b)(4)(v). If the Plan Year is changed to
satisfy the requirement under Treasury Regulation Section 1.410(b)-7(d)(5) that
aggregated plans have the same plan year, the qualified nonelective contributions
and qualified matching contributions may be taken into account in the resulting
short plan year only if the contributions satisfy the requirements of Treasury
Regulation Section 1.401(k)-2(a)(4)(i) with respect to the short year as if the
contributions were elective contributions and the aggregated plans could otherwise
be aggregated for purposes of Code Section 410(b).

     Section C.04 401(k) Limit. In any Plan Year, the K Percentage for Highly Compensated
Participants may not be more than the greater of—

     (a) the K Percentage for the preceding Plan Year for all Participants that were not
Highly Compensated Participants in that preceding Plan Year multiplied by 1.25; or

     (b) the lesser of 2% plus the K Percentage for the preceding Plan Year for all
Participants that were not Highly Compensated Participants in that preceding Plan Year or
the K Percentage for the preceding Plan Year for all Participants that were not Highly
Compensated Participants in the preceding Plan Year multiplied by 2.0.

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	K Percentage for Nonhighly	 	Maximum K Percentage allowed for
	Compensated (Non-HC%)	 	Highly Compensated
	0% 

	 	0% 
	Greater than 0%, up to 2%

	 	Non-HC% x 2
	Greater than 2%, up to 8%

	 	Non-HC% + 2
	Over 8%

	 	Non-HC% x 1.25

     Section C.05 Highly Compensated Individual K Percentage Limit. If at the end of
any Plan Year the K Percentage for Highly Compensated Participants exceeds the group limit in
Section C.04, the Committee will determine the initial maximum individual K Percentage limit for
Highly Compensated Participants. The initial maximum limit is a ceiling on each Highly Compensated
Participant’s individual K Percentage, which, if imposed, would bring the group K Percentage for
Highly Compensated Participants within the limits imposed by the previous Section.

     Section C.06 Excess Tax-Deferred Contributions. In any Plan Year in which the K
Percentage for Highly Compensated Participants exceeds the 401(k) limit, the Excess Tax-Deferred
Contributions and/or Roth Contributions are determined under this Section.

     (a) The Total Excess Tax-Deferred Contributions and/or Roth Contributions equal the sum
of the Individual Excess Tax-Deferred Contributions and/or Roth Contributions for each
Highly Compensated Participant.

     (b) The Individual Excess Tax-Deferred Contributions and/or Roth Contributions for a
Highly Compensated Participant equal the excess of the Participant’s Tax-Deferred
Contributions and/or Roth Contributions for the Plan Year over (1) multiplied by (2) as
follows:

     (1) the maximum individual K Percentage limit for Highly Compensated
Participants (see Section C.05);

     (2) the Participant’s Compensation.

     Section C.07 Treatment of Excess Tax-Deferred Contributions and/or Roth Contributions.
Excess Tax-Deferred Contributions and/or Roth Contributions will be either recharacterized as
After-Tax Contributions (in accordance with IRS regulations) or repaid to the Participants, along
with earnings on the excess amounts.

     (a) Excess Tax-Deferred Contributions and/or Roth Contributions will be recharacterized
or repaid as follows:

     (1) An amount will be recharacterized or repaid to the Highly Compensated
Participant(s) with the most Individual Excess Tax-Deferred Contributions and/or
Roth Contributions as follows:

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     (A) The amount recharacterized or repaid is the amount necessary to
reduce that Participant’s Individual Excess Tax-Deferred Contributions
and/or Roth Contributions to the dollar amount of Individual Excess
Tax-Deferred Contributions and/or Roth Contributions of the Highly
Compensated Participant with the next most Individual Excess Tax-Deferred
Contributions and/or Roth Contributions.

     (B) A lesser amount will be recharacterized or repaid if that lesser
amount, when added to the total dollar amount already recharacterized or
repaid, equals the Total Excess Tax-Deferred Contributions and/or Roth
Contributions.

     (2) The process in subsection (1) is repeated until the Total Excess
Tax-Deferred Contributions and/or Roth Contributions have been recharacterized or
repaid in full.

     (b) The following additional rules apply:

     (1) Repaid earnings include amounts earned for the Plan Year in which the
contributions were made.

     (2) Any repayment under this Section must be made before the end of the Plan
Year following the Plan Year to which the excesses are attributable.

     (3) Recharacterization will not occur for any Highly Compensated Participant to
the extent that the recharacterized amounts, in combination with After-Tax
Contributions made by or on behalf of the Participant, exceed the maximum amount of
After-Tax Contributions the Participant would be permitted to make under the Plan in
absence of recharacterization.

     (4) If a Participant’s contributions are recharacterized as After-Tax
Contributions for a Plan Year due to such Participant reaching the dollar limit in
Section 6.02(a), in accordance with Section 6.02(c)(1), the Participant’s elected
percentage of Compensation that was in effect for such Plan Year prior to such
recharacterization shall be in effect for the subsequent Plan Year, unless the
Participant makes a new election. If contributions must be returned to a
Participant due to contribution limits or as the result of the nondiscrimination
testing, Roth Contributions shall be returned prior to Tax-Deferred Contributions.

     Section C.08 The 401(m) Test. Sections C.09-C.13 are intended to implement the
nondiscrimination requirements set forth in Code Section 401(m) and the regulations under that
section, which are incorporated here by reference. The limitations of this section will be imposed
after the operation of the 401(k) test.

     Section C.09 A&C Percentage. This term means the average of the A&C Ratios,
calculated separately for each Participant in a group. The A&C Ratio is the amount of all
After-Tax and Company Matching Contributions made to a Participant’s Account for a Plan Year, plus
the “elective contributions” and the “qualified nonelective contributions” treated by the

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Committee as matching contributions, divided by the Participant’s Compensation for that Plan
Year. However, the A&C Ratio does not count amounts counted under the 401(k) test.

     (a) Qualified Nonelective Contributions.

     (1) Qualified Nonelective Contributions. The term “qualified
nonelective contributions” means employer contributions, other than elective
contributions and matching contributions, that satisfy the additional requirements
of (2).

     (2) Additional Requirements. Except to the extent that Treasury
Regulation Section 1.401(k)-1(c) and (d) specifically provide otherwise, the
nonelective contributions must satisfy the requirements of Treasury Regulation
Section 1.401(k)-1(c) and (d) as though the contributions were elective
contributions, without regard to whether the contributions are actually taken into
account as elective contributions under paragraph (b)(2) of this Section. Thus, the
nonelective contributions must satisfy the vesting requirements of Treasury
Regulation Section 1.401(k)-1(c) and be subject to the distribution requirements of
Treasury Regulation Section 1.401(k)-1(d) when they are contributed to the Plan.

     (b) Qualified Nonelective Contributions And Elective Contributions That May Be
Taken Into Account Under The Actual Contribution Percentage Test. All or part of the
qualified nonelective contributions and elective contributions made with respect to any or
all Employees who are Eligible Employees under the Plan may be treated as matching
contributions provided that each of the following requirements (to the extent applicable) is
satisfied:

     (1) The amount of nonelective contributions, including those qualified
nonelective contributions treated as matching contributions for purposes of the
actual contribution percentage test, satisfies the requirements of Code Section
401(a)(4).

     (2) The amount of nonelective contributions, excluding those qualified
nonelective contributions treated as matching contributions for purposes of the
actual contribution percentage test and those qualified nonelective contributions
treated as elective contributions under Treasury Regulation Section 1.401(k)-2(a)(6)
for purposes of the actual deferral percentage test, satisfies the requirements of
Code Section 401(a)(4).

     (3) The elective contributions, including those treated as matching
contributions for purposes of the actual contribution percentage test, satisfy the
requirements of Code Section 401(k)(3).

     (4) The qualified nonelective contributions are allocated to the Employee under
the Plan as of a date within the Plan Year (within the meaning of Treasury
Regulation Section 1.401(k)-2(a)(4)(i)(A)), and the elective

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contributions satisfy Treasury Regulation Section 1.401(k)-2(a)(4)(i) for the
Plan Year.

     (5) The plan that takes qualified nonelective contributions and elective
contributions into account in determining whether employee and matching
contributions satisfy the requirements of Code Section 401(m)(2)(A), and the plans
to which the qualified nonelective contributions and elective contributions are
made, are or could be aggregated for purposes of Code Section 410(b) (other than the
average benefit percentage test). If the plan year of the plan being tested is
changed to satisfy the requirement under Code Section 410(b) that the aggregated
plans have the same plan year, the elective contributions may be taken into account
in the resulting short plan year only if these contributions satisfy the
requirements of Treasury Regulation Section 1.401(k)-2(a)(4) with respect to the
short year, and the qualified nonelective contributions may be taken into account in
the resulting short plan year only if these contributions satisfy the requirements
of Treasury Regulation Section 1.401(k)-2(a)(4)(i)(A) with respect to the short year
as if they were elective contributions.

     Section C.10 Highly Compensated Group Contribution Limit. In any Plan Year, the A&C
Percentage for the group of Highly Compensated Participants may not be more than the greater of —

     (a) the A&C Percentage for the preceding Plan Year for all Participants that were not
Highly Compensated Participants in that preceding Plan Year multiplied by 1.25, or

     (b) the lesser of 2% plus the A&C Percentage for the preceding Plan Year for all
Participants that were not Highly Compensated Participants in the preceding Plan Year or the
A&C Percentage for the preceding Plan Year for all Participants that were not Highly
Compensated Participants in the preceding Plan Year multiplied by 2.0.

The following chart expresses this concept.

	 	 	 
	A&C Percentage for Nonhighly	 	Maximum A&C

Percentage allowed for
	Compensated (Non-HC%)	 	Highly Compensated
	0% 

	 	0% 
	Greater than 0%, up to 2%

	 	Non-HC% x 2
	Greater than 2%, up to 8%

	 	Non-HC% + 2
	Over 8%

	 	Non-HC% x 1.25

     Section C.11 Highly Compensated Individual A&C Limit. If at the end of any Plan
Year the A&C Percentage for Highly Compensated Participants exceeds the group limit in Section
C.10, the Committee will determine the initial maximum individual A&C percentage limit

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for Highly Compensated Participants. The initial maximum limit is a ceiling on each Highly
Compensated Participant’s individual A&C percentage, which, if imposed, would bring the group A&C
Percentage for Highly Compensated Participants within the limits imposed by the previous Section.

     Section C.12 Excess A&C Contributions. In any Plan Year in which the A&C Percentage
for Highly Compensated Participants exceeds the A&C limit, the Excess A&C Contributions are
determined under this Section.

     (a) The Total Excess A&C Contributions equal the sum of the Individual Excess A&C
Contributions for each Highly Compensated Participant.

     (b) The Individual Excess A&C Contributions for a Highly Compensated Participant equal
the excess of the Participant’s After-Tax and Company Matching Contributions for that Plan
Year over (1) multiplied by (2) as follows:

     (1) the maximum individual A&C limit for Highly Compensated Participants (see
Section C.11);

     (2) the Participant’s Compensation.

     Section C.13 Treatment of Excess A&C Contributions. Excess A&C Contributions are
treated as follows:

     (a) Excess A&C Contributions are repaid as follows:

     (1) An amount will be repaid to the Highly Compensated Participant(s) with the
most Individual Excess A&C Contributions as follows:

     (A) The amount repaid is the amount necessary to reduce that
Participant’s Individual Excess A&C Contributions to the dollar amount of
Individual Excess A&C Contributions of the Highly Compensated Participant
with the next most Individual Excess A&C Contributions.

     (B) A lesser amount will be repaid if such lesser amount, when added to
the total dollar amount already repaid, equals the Total Excess A&C
Contributions.

     (2) The process in subsection (1) is repeated until the Total Excess A&C
Contributions have been repaid in full.

     (b) The following additional rules apply:

     (1) Participant contributions are repaid to a Participant along with earnings
on the repaid amounts.

     (2) Company Matching Contributions are forfeited along with their earnings and
applied to reduce future Company contributions to the Plan.

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Repayments and forfeitures must be made before the end of the Plan Year
following the Plan Year to which the excess amounts are attributable.

     (3) Earnings include amounts earned for the Plan Year in which the
contributions were made.

     Section C.14 Reductions During the Year. This Appendix in no way restricts the
Committee’s ability to reduce the amount of contributions that may be made during a Plan Year to
try to prevent the Plan from exceeding the limits in this Appendix.

     Section C.15 Unmatched Company Contributions. If as the result of the operation of
Section 6.02 (the dollar limit on Tax-Deferred and Roth Contributions, as indexed) and/or the
401(k) test and/or the 401(m) test, a Participant’s contributions are reduced so that Company
Matching Contributions previously made are no longer matched by sufficient Participant
contributions, the Participant’s Company Matching Contributions will be reduced to match properly
the Participant’s remaining contributions. The excess Company Matching Contributions will be
forfeited and applied to reduce future Company contributions to the Plan.

     Section C.16 Employee Stock Ownership Plan. Amounts allocated under an employee stock
ownership plan described in Code Section 4975(e)(7) are counted under the 401(k) test and the
401(m) test for the Plan.

     Section C.17 Compensation. For purposes of this Appendix, Compensation means
Compensation as defined under Code Section 414(s).

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APPENDIX D

Highly Compensated Participants

     Section D.01 In General. This Appendix implements Code Section 414(q) and will not
be construed to require anything more than that statute requires.

     Section D.02 Highly Compensated Participant. A Highly Compensated Participant is any
Employee who performs services for the Affiliated Companies during the Plan Year and is:

     (a) An Eligible Employee who could actively participate in the Plan (i.e., by making
contributions) during a Plan Year whether or not he or she does actively participate in the
Plan; and

     (b) Described under the 5%-Owner test of Section D.03 or the Preceding Plan Year
Compensation Test of Section D.04.

     Section D.03 5%-Owner Test. A Participant is a Highly Compensated Participant in the
current Plan Year if he or she was a 5%-Owner at any time during the current Plan Year or during
the preceding Plan Year.

     Section D.04 Preceding Plan Year Compensation Test. A Participant is a Highly
Compensated Participant in the current Plan Year if he or she earned compensation from the
Affiliated Companies in excess of $110,000 (as indexed) during the preceding Plan Year.

     Section D.05 5%-Owner. For purposes of this Section, an Employee is treated as a
5%-owner in a Plan Year if at any time during the Plan Year the Employee owned more than 5% of the
outstanding stock of any member of the Affiliated Companies or stock possessing more than 5% of the
total combined voting power of such stock.

     (a) An Employee is deemed to own not only his or her own stock but also any stock that
he or she is treated as owning by Code Section 318. In addition, Code Section 318(a)(2)(C)
is applied by substituting “5%” for “50%.”

     (b) Subsections (b), (c), and (m) of Code Section 414, which treat different but
related employers as a single employer, do not apply in determining whether an Employee owns
more than 5% of any member of the Affiliated Companies. That is, an Employee who owns more
than 5% of just a single subsidiary is a 5%-Owner.

     Section D.06 Nonresident Aliens. Nonresident aliens who receive from the Affiliated
Companies no earned income (as defined in Code Section 911(d)(2)) constituting income from sources
within the United States (as defined in Code Section 861(a)(3)) are not Employees under this
Appendix.

     Section D.07 Compensation. For purposes of this Appendix, the term “compensation”
means all amounts paid to the Employee by the Affiliated Companies that is treated as
“Compensation” under Code Section 415(c)(3). This includes amounts paid to the Employee during the
entire Plan Year even if the Employee was an active Participant in the Plan only for

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part of the year. “Compensation” includes elective amounts that are not includible in the
gross income of the Employee by reason of Code Section 132(f)(4).

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APPENDIX E

Merged Money Purchase Accounts

ARTICLE E1

In General

     Section E1.01 Covered Accounts.

     (a) Merged Plans. As of their respective effective dates, the plans listed in
(c) are merged into this Plan or were merged into the Northrop Grumman Savings Plan as of
the Spin-Off. Amounts held on behalf of each Participant in each separate Money Purchase
Account shall be held in a single subaccount on behalf of each such Participant. The
subaccount is entitled the “Prior Plan MPP” subaccount.

     (b) Money Purchase Pension Plans. The Money Purchase Accounts contain amounts
contributed under a money purchase pension plan. Because special distribution rules apply
to amounts contributed under a money purchase plan, this Appendix is intended to preserve
those distribution rights to the extent required by law.

     (c) Money Purchase Accounts.

	 	 	 	 	 
	 	 	 	 	Money Purchase
	Name of Merged Plans	 	Merger Effective Date	 	Account Name
	Northrop Grumman
Retirement and Savings
Plan

	 	January 1, 1998
	 	NGR&S Plan Annuity
Account
	 
	 	 	 	 
	Georgia Production Site
Retirement and Savings
Plan

	 	April 1, 1998
	 	GPS Plan Annuity
Account
	 
	 	 	 	 
	Grumman Systems Support
Corporation Money
Purchase Pension Plan,
including frozen accounts
from the former Grumman
Systems Support
Corporation Employees
Profit Sharing Plan

	 	July 1, 1998
	 	GSSC MPPP Account
	 
	 	 	 	 
	INRI Money Purchase Plan

	 	July 28, 2000
	 	INRI MPP Account
	 
	 	 	 	 
	Employees’ Profit Sharing
Plan of Logicon
Geodynamics, Inc.

	 	June 22, 2001
	 	Geodynamics Plan
Account (all amounts
other than amount in
Elective
Contribution
Account)
	 
	 	 	 	 
	Xetron Corporation Money
Purchase Pension Plan

	 	September 27, 2001
	 	Xetron MPPP Account

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	 	 	 	 	Money Purchase
	Name of Merged Plans	 	Merger Effective Date	 	Account Name
	TASC Profit Sharing and
Savings Plan (Defined
Contribution Account)

	 	March 28, 2003
	 	TASC Defined
Contribution Account
	 
	 	 	 	 
	Continental Maritime
Employee Stock Ownership
Plan

	 	December 19, 2003
	 	CMI Account (only
the portion of the
account attributable
to money purchase
contributions)
	 
	 	 	 	 
	PRC Inc. Retirement
Savings Program

	 	December 1, 2007
	 	PRC Pension Account

     Section E1.02 Other Provisions Applicable. The other provisions of the Plan
apply to the Accounts described in this Article to the extent not inconsistent with this Appendix.
But withdrawals and distributions from these Accounts may only be made under this Appendix.

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ARTICLE E2

Definitions

     Section E2.01 In General. Terms with initial capital letters used in this Appendix
that are not defined in this Plan document have the meaning given in the respective Merged Plan
document in effect immediately before the plan’s merger date.

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ARTICLE E3

In-Service Withdrawals

     Section E3.01 In General.

     (a) This Article provides special rules for in-service withdrawals from certain Money
Purchase Accounts that are part of this Plan.

     (b) Except as specifically provide elsewhere in this Article, amounts held in this Plan
that were originally contributed under a money purchase pension plan may not be withdrawn
before the Participant’s termination of employment with the Affiliated Companies.

     Section E3.02 TASC Plan Money Purchase Contributions. Assets previously held in the
TASC Defined Contribution Account shall be held in the Prior Plan Company subaccount. Article 11
shall govern a Participant’s ability to request an in-service withdrawal of such amounts.

     Section E3.03 Committee Rules. The Committee may prescribe rules and procedures to
implement this Article, which may be changed at any time without advance notice to Participants.
These may include, without limitation, rules for determining the order in which amounts for a
withdrawal will be taken from particular funds and determining the dates to be used for valuing
distributions.

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ARTICLE E4

Distributions

     Section E4.01 In General. When a Participant terminates employment with the
Affiliated Companies or reaches age 70-1/2, distributions of his or her Money Purchase Accounts may
be made under this Article. Distributions upon death before a Participant’s Annuity Starting Date
are made under Article E5.

     Section E4.02 Small Benefits. The Account of a Participant who terminates employment
with the Affiliated Companies for any reason with an entire Account balance (including Merged Plan
Accounts) equal to $1,000 or less will be paid in a single sum as soon as administratively feasible
after the Participant’s Termination of Employment.

     Section E4.03 Lump Sums. Subject to the spousal consent rules of Section E4.09, a
Participant who terminates employment with an Account balance over $1,000 may elect to receive his
or her entire Money Purchase Account as part of a single lump sum paid in combination with any
other lump sum distribution under Article 10.

     Section E4.04 Married Participants. Unless otherwise elected under Section E4.03,
Money Purchase Accounts of married Participants are paid in the joint and survivor annuity option.
See Section E4.06. A Participant’s entire Money Purchase Account will be distributed in one form.
But, if a Participant has more than one Money Purchase Account, he or she may elect different
benefit forms for each of those accounts.

     Section E4.05 Unmarried Participants. Unless otherwise elected under Section E4.03,
Money Purchase Accounts of unmarried Participants are paid in the life annuity option. See Section
E4.07. A Participant’s entire Money Purchase Account will be distributed in one form. But if a
Participant has more than one Money Purchase Account, he or she may elect different benefit forms
for each of those accounts.

     Section E4.06 Joint And Survivor Option. Under this option, a Participant’s Money
Purchase Account balance is used to purchase an annuity contract from an insurance company. The
contract pays the Participant a monthly benefit for life and then, after the death of the
Participant, a benefit equal to 50% or 75% of the Participant’s monthly benefit to the
Participant’s spouse for the remainder of his or her life if the spouse is still alive. If the
spouse is not still alive when the Participant dies, no further payments are made.

     Section E4.07 Life Annuity Option. Under this option, a Participant’s Money Purchase
Account balance is used to purchase a single life annuity contract from an insurance company. The
contract pays the Participant a monthly benefit for life. No payments are made after the
Participant dies.

     Section E4.08 Determining Marital Status and Spouse. Marital status is determined in
accordance with Section 14.03.

     Section E4.09 Spousal Consent. A married Participant may elect not to take the joint
and survivor option for his or her Money Purchase Account only with written spousal consent that
satisfies Section 14.04(a)-(c).

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     Section E4.10 Explanation. The Committee must provide, within a reasonable period
before benefits commence, each Participant who has a positive balance in his or her Money Purchase
Account a written explanation of:

     (a) The terms and conditions of the joint and survivor option;

     (b) The Participant’s right to make, and the effect of, an election to waive the joint
and survivor option and elect another option;

     (c) The rights of the Participant’s spouse under Section E4.09; and

     (d) The right to make, and the effect of, a revocation of a waiver of the joint and
survivor option.

     Section E4.11 Deferral of Commencement. A Participant may choose to delay
commencement of his or her benefits until his or her Mandatory Commencement Date.

     Section E4.12 Minimum Distribution Requirements.

     (a) Treasury Regulations Incorporated. All distributions required under this
Section will be determined and made in accordance with the Treasury Regulations under Code
Section 401(a)(9).

     (b) Definitions. The following definitions apply for purposes of this Section
and Section E5.10.

     (1) Designated beneficiary. The individual who is designated as the
beneficiary under Article 14 and is the designated beneficiary under Code Section
401(a)(9) and Treasury Regulation Section 1.401(a)(9)-1, Q&A-4.

     (2) Distribution calendar year. A calendar year for which a minimum
distribution is required. For distributions beginning before the Participant’s
death, the first Distribution Calendar Year is the calendar year immediately
preceding the calendar year containing the Participant’s Mandatory Commencement
Date. For distributions beginning after the Participant’s death, the first
Distribution Calendar Year is the calendar year in which distributions are required
to begin under Section E5.10(d). The required minimum distribution for the
Participant’s first Distribution Calendar Year will be made on or before the
Participant’s Mandatory Commencement Date. The required minimum distribution for
other Distribution Calendar Years, including the required minimum distribution for
the Distribution Calendar Year in which the Participant’s Mandatory Commencement
Date occurs, will be made on or before December 31 of that Distribution Calendar
Year.

     (3) Life expectancy. Life expectancy as computed under the Single Life
Table in Treasury Regulation Section 1.401(a)(9)-9.

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     (c) Forms of Distribution. Unless the Participant’s interest is distributed in
the form of an annuity purchased from an insurance company or in a single sum on or before
the Mandatory Commencement Date, distributions will be made in accordance with (d) and (e)
as of the first Distribution Calendar Year.

     (d) Distributions During Participant’s Lifetime. Required minimum
distributions are determined under this subsection beginning with the first Distribution
Calendar Year and up to and including the Distribution Calendar Year that includes the
Participant’s date of death. During the Participant’s lifetime, the minimum amount that
will be distributed for each Distribution Calendar Year is the lesser of:

     (1) the quotient obtained by dividing the Participant’s Account balance by the
distribution period in the Uniform Lifetime Table set forth in Treasury Regulation
Section 1.401(a)(9)-9, using the Participant’s age as of the Participant’s birthday
in the Distribution Calendar Year; or

     (2) if the Participant’s sole Designated Beneficiary for the Distribution
Calendar Year is the Participant’s spouse, the quotient obtained by dividing the
Participant’s Account balance by the number in the Joint and Last Survivor Table
provided in Treasury Regulation Section 1.401(a)(9)-9, using the Participant’s and
spouse’s attained ages as of the Participant’s and spouse’s birthdays in the
Distribution Calendar Year.

     (e) Distributions After Participant’s Death.

     (1) Participant Survived by Designated Beneficiary. If a Participant
dies on or after the date distributions begin and there is a Designated Beneficiary,
the minimum amount that will be distributed for each Distribution Calendar Year
after the year of the Participant’s death is the quotient obtained by dividing the
Participant’s Account balance by the longer of the remaining Life Expectancy of the
Participant or the remaining Life Expectancy of the Participant’s Designated
Beneficiary, determined as follows:

     (A) The Participant’s remaining Life Expectancy is calculated using the
age of the Participant in the year of death, reduced by one for each
subsequent year.

     (B) If the Participant’s surviving spouse is the Participant’s sole
Designated Beneficiary, the remaining Life Expectancy of the surviving
spouse is calculated for each Distribution Calendar Year after the year of
the Participant’s death using the surviving spouse’s age as of the spouse’s
birthday in that year. For Distribution Calendar Years after the year of
the surviving spouse’s death, the remaining Life Expectancy of the surviving
spouse is calculated using the age of the surviving spouse as of the
spouse’s birthday in the calendar year of the spouse’s death, reduced by one
for each subsequent calendar year.

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     (C) If the Participant’s surviving spouse is not the Participant’s sole
Designated Beneficiary, the Designated Beneficiary’s remaining Life
Expectancy is calculated using the age of the beneficiary in the year
following the year of the Participant’s death, reduced by one for each
subsequent year.

     (2) No Designated Beneficiary. If the Participant dies on or after the
date distributions begin and there is no Designated Beneficiary as of September 30
of the year after the year of the Participant’s death, the minimum amount that will
be distributed for each Distribution Calendar Year after the year of the
Participant’s death is the quotient obtained by dividing the Participant’s Account
balance by the Participant’s remaining Life Expectancy calculated using the age of
the Participant in the year of death, reduced by one for each subsequent year.

     Section E4.13 Committee Rules. The Committee may prescribe rules and procedures to
implement this Article, which may be changed at any time without advance notice to Participants.

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ARTICLE E5

Death Benefits

     Section E5.01 In General. This Article describes the payment of Money Purchase
Account benefits following the death of a Participant before his or her Annuity Starting Date. If
a Participant dies after his or her Annuity Starting Date (even if actual commencement is delayed
for some reason), Article E4 applies to Money Purchase Account death benefits.

     Section E5.02 Small Benefits. If the Participant’s entire Account balance (including
amounts other than Money Purchase Accounts) upon death equals $1,000 or less, it is paid in a
single lump sum in cash to the Participant’s beneficiary. Payment of small benefits is made as
soon as possible following the Participant’s death.

     Section E5.03 Married Participants. If a Participant is married when he or she dies,
the Participant’s Money Purchase Account generally will be paid to the spouse to whom the
Participant was married at the time of death in the form of a life annuity. See Section E5.05(a).
However:

     (a) The spouse may choose a lump sum payment option. See Section E5.05(b).

     (b) A nonspouse beneficiary (which includes a former spouse) may be designated, but
only with spousal consent. See Section E5.08.

     (c) A qualified domestic relations order may require that a former spouse be treated as
the spouse for purposes of this Article, or may otherwise provide for payment of death
benefits to some other beneficiary.

     Section E5.04 Nonspouse Beneficiaries. If a Participant dies with a beneficiary other
than his or her spouse, his or her Money Purchase Account will be paid in a single lump sum in cash
to that beneficiary. Payment is made as soon as administratively feasible following the
Participant’s death.

     Section E5.05 Spouse Beneficiaries.

     (a) Single Life Annuity. When a Participant’s beneficiary is his or her
spouse, the Money Purchase Account death benefit is generally paid in the form of a single
life annuity subject to the election in (b). Under this option, a Participant’s Money
Purchase Account balance is used to purchase an annuity contract from an insurance company.
The contract pays the spouse a monthly benefit for life. No payments are made after the
spouse dies.

     (b) Lump Sum. A spouse alternatively may elect to receive payment of the Money
Purchase Account death benefit in a single lump sum in cash.

     Section E5.06 Commencement. Payment of a Participant’s Money Purchase Account is
generally made as soon as possible following the Participant’s death. But the spouse may elect

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to delay commencement of benefits to a date that is no later than the date the Participant
would have reached his or her Mandatory Commencement Date.

     Section E5.07 Determining Marital Status and Spouse. See Section 14.03 for
determinations of marital status and identification of a Participant’s spouse.

     Section E5.08 Beneficiaries.

     (a) A Participant may designate a beneficiary for his or her Money Purchase Account
under the rules of Article 14 as modified by paragraph (b).

     (b) A married Participant may not name a nonspouse beneficiary for his or her Money
Purchase Account before January 1st of the calendar year in which he or she attains age 35
unless the Participant has previously terminated employment with the Affiliated Companies.

     Section E5.09 Valuing Death Benefits. Death benefits paid under this Article are
valued under Section 13.04.

     Section E5.10 Minimum Distribution Requirements.

     (a) Treasury Regulations Incorporated. All distributions required under this
Section will be determined and made in accordance with the Treasury Regulations under Code
Section 401(a)(9).

     (b) Definitions. See Section E4.12(b).

     (c) Forms of Distribution. Unless the Participant’s interest is distributed in
the form of an annuity purchased from an insurance company or in a single sum on or before
the Mandatory Commencement Date, distributions will be made in accordance with (d) and (e)
as of the first Distribution Calendar Year.

     (d) Timing of Distributions. If the Participant dies before his or her Annuity
Starting Date, the Participant’s entire interest will be distributed, or begin to be
distributed, no later than as follows:

     (1) If the Participant’s surviving spouse is the Participant’s sole Designated
Beneficiary, then distributions to the surviving spouse will begin by December 31 of
the calendar year immediately following the calendar year in which the Participant
died, or by December 31 of the calendar year in which the Participant would have
attained age 70-1/2, if later.

     (2) If the Participant’s surviving spouse is not the Participant’s sole
Designated Beneficiary, then distributions to the Designated Beneficiary will begin
by December 31 of the calendar year immediately following the calendar year in which
the Participant died.

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     (3) If there is no Designated Beneficiary as of September 30 of the year
following the year of the Participant’s death, the Participant’s entire interest
will be distributed by December 31 of the calendar year containing the fifth
anniversary of the Participant’s death.

     (4) If the Participant’s surviving spouse is the Participant’s sole Designated
Beneficiary and the surviving spouse dies after the Participant but before
distributions to the surviving spouse begin, this subsection (d) (excluding (1))
applies as if the surviving spouse were the Participant.

     For purposes of this subsection, unless (4) above applies, distributions are considered to
begin on the Participant’s Mandatory Commencement Date. If (4) above applies, distributions are
considered to begin on the date distributions are required to begin to the surviving spouse under
(1) above. If distributions under an annuity purchased from an insurance company irrevocably
commence to the Participant before the Participant’s Mandatory Commencement Date (or to the
Participant’s surviving spouse before the date distributions are required to begin to the surviving
spouse under (1) above), the date distributions are considered to begin is the date distributions
actually commence.

     (e) Amount of Distributions.

     (1) Participant Survived by Designated Beneficiary. If the Participant
dies before the date distributions begin and there is a Designated Beneficiary, the
minimum amount that will be distributed for each Distribution Calendar Year after
the year of the Participant’s death is the quotient obtained by dividing the
Participant’s Account balance by the remaining Life Expectancy of the Participant’s
Designated Beneficiary, determined as provided in Section E4.12(e).

     (2) No Designated Beneficiary. See (d)(3) above.

     (3) Death of Surviving Spouse Before Distributions to Surviving Spouse Are
Required to Begin. If the Participant dies before the date distributions begin,
the Participant’s surviving spouse is the Participant’s sole Designated Beneficiary,
and the surviving spouse dies before distributions are required to begin to the
surviving spouse under (d)(1) above, (e)(1) above applies as if the surviving spouse
were the Participant.

     Section E5.11 Committee Rules. Distributions under this Article must be made
according to the rules and procedures of the Committee, which may be changed at any time without
advance notice to Participants.

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ARTICLE E6

Form of Payments

     Section E6.01 In General.

     (a) Payments from funds other than the Huntington Ingalls Industries Fund or the
Northrop Grumman Fund will be made in cash.

     (b) Payments from the Huntington Ingalls Industries Fund may be made in cash by check
or in whole shares of Huntington Ingalls Industries, Inc. common stock in accordance with
the terms of the ESOP (with cash by check for any fractional share). Payments from the
Northrop Grumman Fund shall be made in accordance with the terms of Section 10.08(b).

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APPENDIX F

Merged Non-Money Purchase Plan Accounts

ARTICLE F1

In General

     Section F1.01 Covered Accounts.

     (a) Merged Plans. As of their respective effective dates, the plans listed in
(c) are merged into this Plan or were merged into the Northrop Grumman Savings Plan as of
the Spin-Off. Effective prior to January 1, 2007, all amounts from those plans that were
merged into the Northrop Grumman Savings Plan were held in their corresponding Accounts
(“Merged Accounts”). Effective as of January 1, 2007, the contributions held in each
separate Merged Account were merged into the Prior Plan Pre-Tax, Prior Plan After-Tax, Prior
Plan IRA, and Prior Plan Company subaccounts according to the nature of the contributions
held in the Merged Accounts. All amounts from plans listed in (c) that are merged into this
Plan after the Spin-Off shall be held in the Prior Plan Pre-Tax, Prior Plan After-Tax, Prior
Plan IRA, and Prior Plan Company subaccounts according to the nature of the original
contributions, as determined by the Committee.

     (b) Non-Money Purchase Pension Plans. The Accounts listed in (c) (“Merged
Accounts”) contain all amounts transferred to this Plan that were not contributed under a
money purchase pension plan. Thus, the distribution rules provided in this Appendix—and
not Appendix E—apply to these Accounts.

     (c) Table.

	 	 	 	 	 
	Name of Merged Plans	 	Merger Effective Dates	 	Merged Account 

Names
	Employee Investment Plan of Grumman
Corporation (including the merger of
the Grumman Corporation Employee Stock
Ownership Plan into the Northrop
Grumman Corporation Employee Stock
Ownership Plan)

	 	August 1, 1995
	 	EIP Account
	 
	 	 	 	 
	Northrop Grumman Retirement and Savings
Plan

	 	January 1, 1998
	 	NGR&S Non-Annuity
Account
	 
	 	 	 	 
	Grumman Technical Services, Inc.
Aircraft Services Unit (Operations and
Maintenance) Capital Accumulation Plan,
including the Grumman Technical
Services, Inc. 5% Capital Accumulation
Plan

	 	April 1, 1998
	 	O&M Account
5% Account
	 
	 	 	 	 
	Grumman Technical Services, Inc.
Capital Accumulation and Savings Plan
for the Employees Represented by the
International Association of Machinists
and Aerospace Workers, AFL-CIO

	 	April 1, 1998
	 	IAM Account

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	Name of Merged Plans	 	Merger Effective Dates	 	Merged Account 

Names
	Grumman Technical Services, Inc.
Represented Employee Investment Plan

	 	April 1, 1998
	 	REIP Account
	 
	 	 	 	 
	Grumman Technical Services, Inc.
Capital Accumulation Plan SPC —
Represented Employees

	 	April 1, 1998
	 	SPC Account
	 
	 	 	 	 
	Grumman St. Augustine Corporation
Capital Accumulation Plan

	 	April 1, 1998
	 	St. Aug. Account
	 
	 	 	 	 
	Grumman Aerospace Corporation
Electronics Systems Division
(Salisbury, Maryland Operations)
Capital Accumulation Plan

	 	April 1, 1998
	 	GAC Account
	 
	 	 	 	 
	Georgia Production Site Retirement and
Savings Plan

	 	April 1, 1998
	 	GPS Non-Annuity
Account
	 
	 	 	 	 
	Grumman Systems Support Corporation
Money Purchase Pension Plan, including
frozen accounts from the former Grumman
Systems Support Corporation Employees
Profit Sharing Plan

	 	July 1, 1998
	 	GSSC PSP Account
	 
	 	 	 	 
	Northrop Grumman Commercial Aircraft
Division Salaried Savings and
Investment Plan

	 	September 1, 1999
	 	CAD Account
(including CAD IRA
Contributions
Accounts and CAD
Variable
Contributions
Accounts)
	 
	 	 	 	 
	Employee Salary Deferral Plan of
Logicon, Inc.

	 	July 28, 2000
	 	Logicon 401(k)
Account
	 
	 	 	 	 
	Employees Profit Sharing Plan of
Logicon, Inc., which includes the
Logicon R&D Associates Employees Profit
Sharing Plan

	 	July 28, 2000
	 	Logicon PSP Account
	 
	 	 	 	 
	Employees Profit Sharing Plan of
Logicon Eagle Technology, Inc.

	 	July 28, 2000
	 	Logicon Eagle PSP
Account
	 
	 	 	 	 
	Logicon Syscon, Inc. Profit Sharing Plan

	 	July 28, 2000
	 	Logicon Syscon PSP
Account
	 
	 	 	 	 
	INRI 401(k) and Profit Sharing Plan

	 	July 28, 2000
	 	INRI PSP Account
(only the portion
of the account not
attributable to
money purchase
contributions)

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	Name of Merged Plans	 	Merger Effective Dates	 	Merged Account 

Names
	Northrop Grumman Integrated Systems &
Aerostructures (ISA) Sector Represented
Employee Savings and Investment Plan
(only for ISA Plan participants who (i)
were “Returned Business Employees” or
(ii) were not “Business Employees” or
“Retired Business Employees” on the
“Closing Date” or “Applicable Transfer
Date,” as the case may be, as defined
in the June 9, 2000 Asset Purchase
Agreement between Northrop Grumman
Corporation and VAC Acquisition Corp.
II)

	 	December 15, 2000
	 	ISA Hourly Account
	 
	 	 	 	 
	Northrop Grumman Naval Systems Division
— Cleveland Facility Salaried
Employees 401(k) Savings Plan

	 	February 23, 2001
	 	Naval Salaried
Account
	 
	 	 	 	 
	Northrop Grumman Naval Systems Division
— Cleveland Facility Hourly Employees
401(k) Savings Plan

	 	February 23, 2001
	 	Naval Hourly Account
	 
	 	 	 	 
	Northrop Grumman Electronic Sensors &
Systems Sector Savings and Investment
Plan

	 	April 12, 2001
	 	ES Account
	 
	 	 	 	 
	Employees’ Profit Sharing Plan of
Logicon Geodynamics, Inc.

	 	June 22, 2001
	 	Geodynamics Account
(amount in Elective
Contributions
Account only)
	 
	 	 	 	 
	Data Procurement Corporation, Inc.
401(k) Retirement Plan

	 	August 17, 2001
	 	Employee Pre-tax
Account
Employee Rollover
Account
Company
Discretionary
Account
	 
	 	 	 	 
	Page Communications Engineers, Inc.
Employees Trust Fund

	 	September 1, 2001
	 	Page Account
	 
	 	 	 	 
	Northrop Grumman Norden Systems
Employee Savings Plan

	 	September 27, 2001
	 	Norden Account

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	Name of Merged Plans	 	Merger Effective Dates	 	Merged Account 

Names
	Xetron Corporation Retirement
Income/Savings Plan

	 	September 27, 2001
	 	Xetron RISP Account
	 
	 	 	 	 
	Perceptics Corporation 401(k)
Retirement Plan

	 	September 27, 2002
	 	Perceptics Account
	 
	 	 	 	 
	Northrop Grumman Norden Systems
Represented Employee Savings Plan

	 	October 17, 2002
	 	Norden Hourly
Account
	 
	 	 	 	 
	TASC Profit Sharing and Savings Plan

	 	March 28, 2003
	 	TASC Account (which
excludes the TASC
Defined
Contribution
Account)
	 
	 	 	 	 
	TASC Services Corporation Employee
Savings Plan

	 	March 28, 2003
	 	TSC Account
	 
	 	 	 	 
	Newport News Shipbuilding, Inc. 401(k)
Investment Plan for Salaried Employees

	 	December 19, 2003
	 	NNS Account
	 
	 	 	 	 
	Continental Maritime Employee Stock
Ownership Plan

	 	December 19, 2003
	 	CMI Account
(excluding amounts
attributable to
money purchase
contributions)
	 
	 	 	 	 
	Northrop Grumman Electronic Systems
Union Represented Employees Savings and
Investment Plan

	 	October 22, 2004
	 	ES Union Account
	 
	 	 	 	 
	Northrop Grumman Space & Mission
Systems Corp. Savings Plan

	 	December 10, 2004
	 	S & MS Account
	 
	 	 	 	 
	Comptek Amherst Systems, Inc. 401(k)
Plan

	 	November 18, 2005
	 	Amherst Account
	 
	 	 	 	 
	PRB Associates, Inc. 401(k) Plan

	 	November 18, 2005
	 	PRB Account

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	Name of Merged Plans	 	Merger Effective Dates	 	Merged Account 

Names
	PRC Inc. Retirement Savings Program

	 	December 1, 2007
	 	Old After-Tax
Pre-87 Account;
Old After-Tax
Post-86 Account;
Post-86 After-Tax
Account;
Pre-87 After-Tax
Account;
ATI Company Match
Account;
ATI Retirement
Account;
ATI Stock Account;
Company Match
Account;
Employer SCA-2
Account;
ERSP Match Account;
ERSP Stock Account;
Transfer Account;
Variable Plan
Account;
Leave Deferral
Account;
Pre-Tax Savings
Account;
QNEC Account;
Litton
Trustee-Trustee
Transfer Account;
Rollover Account
	 
	 	 	 	 
	Redstone Arsenal Retirement Savings Plan

	 	March 31, 2008
	 	Elective Deferral
Contribution
Account;
Employee
Contribution
Account;
Matching
Contribution
Account;
Prior Employer
Contribution
Account;
Qualified Matching
Contribution
Account;
Nonelective
Contribution
Account;
Qualified
Nonelective
Contribution
Account;
Rollover Account

96

 

	 	 	 	 	 
	Name of Merged Plans	 	Merger Effective Dates	 	Merged Account 

Names
	Illgen Simulation Technologies, Inc.
401(k) Savings Plan

	 	June 20, 2008
	 	Elective Deferral
Account;
Matching
Contribution
Account;
Rollover Account
	 
	 	 	 	 
	Northrop Grumman Mobile Access
Software, Inc. 401(k) Plan

	 	June 20, 2008
	 	Elective Deferral
Account;
Rollover
Contribution
Account
	 
	 	 	 	 
	Xontech, Inc. Salary Savings and Profit
Sharing Plan

	 	October 16, 2008
	 	Employee Deferral
Account;
Company Match
Account;
Employer
Discretionary
Account;
Qualified
Discretionary
Account;
Rollover Account
	 
	 	 	 	 
	Xinetics Inc. 401(k) Plan

	 	November 4, 2008
	 	Salary Reduction
Account;
Matching Account;
Employer Account;
Rollover Account
	 
	 	 	 	 
	Fibersense Technology Corporation
401(k) Plan

	 	May 6, 2009
	 	Employee Deferral
Account;
Employer Match
Account;
Discretionary
Account;
Rollover Account
	 
	 	 	 	 
	Integic Corporation 401(k) Plan

	 	May 20, 2009
	 	Employee Deferral
Account;
Employer Match
Account;
Employer
Discretionary
Account;
Rollover Account

97

 

	 	 	 	 	 
	Name of Merged Plans	 	Merger Effective Dates	 	Merged Account 

Names
	3001, Inc. 401(k) Plan

	 	July 1, 2010
	 	Employee
Deferral Account
Roth Deferral
Account
After Tax Frozen
Account
Rollovers Account
Employer Match
Account
Employer
Discretionary
Account
QNEC Account
SHM Account
	 
	 	 	 	 
	Comptek Research Retirement Savings Plan

	 	July 8, 2010
	 	Employee
Before-Tax Account
Employee After-Tax
Account
Employee Rollover
Account
Employer Match
Account
Employer Regular
Account
	 
	 	 	 	 
	Litton Marine Systems, Inc. 401(k)
Savings Plan

	 	July 15, 2010
	 	Employee
Deferral Account
Rollover Account
Part B Pre-tax
Account
Part B After-tax
Account
Part B LERA Account
Employer Match
Account
Part B Company
Account

     Section F1.02 Other Provisions Applicable. The other provisions of the Plan apply to
the Accounts described in this Article to the extent not inconsistent with this Appendix. But
withdrawals and distributions from these Accounts may only be made under this Appendix.

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ARTICLE F2

Definitions

     Section F2.01 In General. Terms with initial capital letters used in this Appendix
that are not defined in this Plan document have the meaning given in the respective Merged Plan
document in effect immediately before the plan’s merger date.

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ARTICLE F3

In-Service Withdrawals

     Section F3.01 In General. In-service withdrawals from Participants’ Merged Accounts
are subject to the limitations under Article 11. A Participant’s ability to request an in-service
withdrawal shall be governed by the limitations that apply to the subaccount into which the Merged
Account was merged.

     Section F3.02 EIP and REIP Account Withdrawals. A Participant may withdraw EIP and
REIP Account amounts attributable to his or her Regular Ordinary Contributions, Regular
Supplemental Contributions, Lump Sum Contributions, Rollover Contributions, Company Contributions,
and earnings on each of these contribution types.

     Section F3.03 NGR&S and GPS Account Withdrawals.

     (a) Withdrawals of NGR&S Plan and GPS Plan After-Tax Basic Contributions (“Standard
Qualifying Contributions” under the NGR&S Plan and GPS Plan) may be made only if the
Participant is not making or stops making Basic Contributions.

     (b) A withdrawal under this Section may not be made more than once every 24 months.

     (c) No Basic Contributions may be made by a Participant for a period of 6 months after
the date on which a withdrawal under this Section is valued.

     Section F3.04 O&M and IAM Account Withdrawals.

     (a) Lump Sum Contributions. O&M and IAM Lump Sum Contribution balances may be
withdrawn under Article 11 as if they were After-Tax Contributions.

     (b) Company Contributions. In-service withdrawals of O&M and IAM Company
Contributions are not permitted.

     Section F3.05 GSSC PSP Account Withdrawals. A Participant may elect an in-service
withdrawal, in a single lump sum, of his or her entire GSSC PSP Account only if:

     (a) He or she has attained the age of 45 and

     (b) He or she has completed five years of participation counting:

     (1) Service under the GSSC PSP prior to its merger into the GSSC MPPP,

     (2) Service under the GSSC MPPP after the GSSC PSP was merged into the GSSC
MPPP and before the GSSC MPPP was merged into the Northrop Grumman Savings Plan;

100

 

     (3) Service under the Northrop Grumman Savings Plan after the GSSC MPPP was
merged into it; and

     (4) Service under this Plan.

     Section F3.06 CAD Account Withdrawals.

     (a) CAD IRA Contributions Account. A Participant at any time may elect to
withdraw all or a portion of the amounts in his or her CAD IRA Contributions Account.

     (b) CAD LTV Old Company Contributions. A Participant at any time may elect to
withdraw all or a portion of the amounts in his or her CAD LTV Old Company Contributions
Account, provided that a Participant must withdraw all After-Tax Contributions (including
CAD After-Tax Contributions) before withdrawing any CAD LTV Old Company Contributions.

     (c) CAD Variable Contributions. CAD Variable Contributions may be withdrawn
only if:

     (1) the Participant qualifies for withdrawals under Section 11.03 of the Plan;
and

     (2) the Participant has withdrawn all other contributions available for
withdrawal, other than CAD IRA Contributions.

     Section F3.07 Logicon Account Withdrawals.

     (a) Except as provided in (b) below, no in-service withdrawals are permitted of Logicon
PSP, Logicon Eagle PSP and Logicon Syscon PSP Account balances.

     (b) A Participant who has a Logicon Syscon PSP Account balance and was an Employee of
an Employer before April 1, 1995 may take one complete or partial withdrawal after attaining
age 591/2 and 10 Years of Service from his or her Logicon Syscon PSP Account. For purposes of
this Section, the terms “Employee,” “Employer,” and “Years of Service” are defined in the
Logicon Syscon, Inc. Profit Sharing Plan in effect immediately before July 28, 2000.

     Section F3.08 INRI Account Withdrawals. A Participant may withdraw from his or her
INRI PSP Account upon hardship under Section 11.02 or upon reaching age 591/2 under Section 11.03.

     Section F3.09 ISA Hourly Account Withdrawals.

     (a) A Participant may withdraw from his or her ISA Hourly Account upon hardship under
Section 11.02 or upon reaching age 591/2 under Section 11.03.

     (b) A Participant may not withdraw less than $250 under this Section unless the amount
withdrawn is the maximum amount then available for withdrawal.

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     Section F3.10 Naval Plan Account Withdrawals. A Participant may withdraw from his or
her Naval Plan Account upon hardship under Section 11.02 or upon reaching age 591/2 under Section
11.03.

     Section F3.11 Geodynamics Plan Account Withdrawals. Withdrawals from a Participant’s
Geodynamics Plan Account may only be made upon hardship under Section 11.02 from his her or
Geodynamics Plan Elective Contribution Accounts (including any interest credited to those accounts
as of December 31, 1988).

     Section F3.12 Xetron RISP Account Withdrawals. In addition, Participants with Xetron
RISP Accounts who have at least 20 years of Service (as defined in Article 7C of the Xetron RISP)
may elect to make in-service withdrawals of Company Profit Sharing Contributions (amounts in
“Employer Contribution Accounts” as defined in the Xetron RISP) made for Plan Year 2001 or earlier.
This includes contributions made in 2002 attributable to Plan Year 2001 and earnings accrued
before January 1, 2002. It does not include any Company Profit Sharing Contributions made for Plan
Years after 2001 or earnings accrued after December 31, 2001.

     Section F3.13 TASC Plan Account Withdrawals. In-service withdrawals of amounts in a
Participant’s TASC Plan Account attributable to profit sharing contributions under section 7.2 of
the TASC Plan are made in accordance with this subsection.

     (a) Except as provided in (B), in-service withdrawals of amounts described in this
subsection are limited by the following:

     (1) the amount of the withdrawal cannot exceed the amount in the Participant’s
Withdrawable Account; and

     (2) the amount must have been on deposit in the Trust Fund for at least two
years (including periods in the trust fund under the TASC Plan).

     (A) “Withdrawable Account” means the amount of a Participant’s profit
sharing contributions in his or her TASC Plan Account previously allocated
to his or her withdrawable account under section 7.2(b) of the TASC Plan.

     (B) A Participant may withdraw any amount described in this subsection
upon reaching age 591/2 without regard to (a).

     Section F3.14 TSC Plan Account Withdrawals. A Participant may withdraw amounts
attributable to matching contributions under Section 7.1 of the TSC Plan upon attaining age 591/2,
even if not otherwise permitted under Article 11.

     Section F3.15 S & MS Account Withdrawals.

     (a) The definitions of capitalized terms used in this Section F3.15 but not defined in
this Plan are found in the Northrop Grumman Space & Mission Systems Corp. Savings Plan as in
effect on December 10, 2004 (the “S & MS Plan”).

102

 

     (b) A Participant may withdraw from his or her S & MS Account amounts attributable to
the Participant’s Company Contributions, and to amounts treated as Company Contributions,
even if not otherwise permitted under Article 11.

     (c) A Participant who has completed three Years of Service may elect during March in
each of the six consecutive Plan Years following the Plan Year in which he or she meets
those requirements to have 50% of that portion of the ESOP Stock Account portion of his or
her S & MS Account (valued as of the last day of the preceding Plan Year) that is
attributable to shares of TRW common stock or Northrop Grumman Corporation common stock
purchased after December 31, 1986, distributed to him or her in a single sum. Distributions
shall be made in the form of full shares of Northrop Grumman Corporation common stock to the
extent possible, and the balance, if any, shall be made in money by check.

     Section F3.16 Xontech Account Withdrawals. Any active participant in the Xontech,
Inc. Salary Savings and Profit Sharing Plan (“Xontech Plan”) who has attained age 70-1/2 and is,
pursuant to his or her election, receiving in-service withdrawals under a systematic withdrawal
plan (installments) from the Xontech Plan as of the merger of the Xontech Plan with and into the
Plan shall continue to receive such withdrawals through the calendar year in which he or she
retires or otherwise terminates employment with the Employer and all Affiliated Companies, unless
he or she elects to accelerate installment payments or to receive a lump sum distribution of the
remainder of his or her Account attributable to the Xontech Plan. Distributions for calendar years
following the calendar year in which the Participant retires or otherwise terminates employment
with the Employer and all Affiliated Companies shall be made in one of the forms of payment
otherwise available under the Plan in accordance with Article 10.

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ARTICLE F4

Distributions

     Section F4.01 In General. Distributions from a Participant’s Merged Account after his
or her termination of employment with the Affiliated Companies or attainment of age 70-1/2 are made
under Article 10.

     Section F4.02 Small Benefits. When a Participant’s entire Account balance (including
any Merged Accounts) upon Termination of Employment equals $1,000 or less on the date of
distribution, it is distributed in a single lump sum in cash. Payment is made as soon as possible
following the Participant’s termination of employment.

     Section F4.03 Integic Corporation 401(k) Plan. Notwithstanding Section F4.01, any
participant in the Integic Corporation 401(k) Plan (“Integic Plan”) who is, pursuant to his or her
election, receiving installment payments under the Integic Plan as of the merger of the Integic
Plan with and into the Plan shall continue to receive such installment payments.

104

 

ARTICLE F5

Death Benefits

     Section F5.01 In General. Distributions from a Participant’s Merged Account after his
or her death, but before his or her Annuity Starting Date, are made under Article 13. If a
Participant dies after his or her Annuity Starting Date (even if actual commencement is delayed for
some reason), Article F4 applies.

     Section F5.02 Small Benefits. When a Participant’s entire Account balance (including
any Merged Account) upon death equals $1,000 or less, it is distributed in a single lump sum in
cash to his or her beneficiary. Payment is made as soon as possible following the Participant’s
death.

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ARTICLE F6

Form of Payments

     Section F6.01 In General.

     (a) Unless specifically provided otherwise in Article F4, payments from funds other
than the Huntington Ingalls Industries Fund or the Northrop Grumman Fund will be made in
cash.

     (b) Payments from the Huntington Ingalls Industries Fund may be made in cash by check
or in whole shares of Huntington Ingalls Industries, Inc. common stock in accordance with
the terms of the ESOP (with cash by check for any fractional share). Payments from the
Northrop Grumman Fund shall be made in accordance with the terms of Section 10.08(b).

106

 

APPENDIX G

Veterans’ Reemployment Rights

     Section G.01 In General. This Appendix is intended only to implement Code Section
414(u) and shall not be construed to require anything more than that statute requires.

     Section G.02 Service Credit. The following rules apply to Qualified Veterans:

     (a) Qualified Veterans shall not experience a break-in-service by reason of performing
a period of Qualified Military Service.

     (b) Qualified Military Service will be counted as vesting service.

     Section G.03 Make-Up Participant Contributions. During the applicable Make-Up Period,
Qualified Veterans may make additional Tax-Deferred, Roth and/or After-Tax Contributions up to the
Maximum Make-Up Amount.

     (a) No earnings or losses will be credited with respect to the period before the
contribution is actually made.

     (b) No forfeitures will be credited to a Qualified Veteran with respect to the period
of his or her Qualifying Military Service.

     Section G.04 Make-Up Company Contributions.

     (a) If a Qualified Veteran elects to make additional contributions under Section G.03,
he or she will be credited with additional Company Matching Contributions in the amount that
would have been credited if the Section G.03 Tax-Deferred, Roth and After-Tax Contributions
had been made during the period of Qualified Military Service.

     (b) Upon reemployment, a Qualified Veteran will be credited with Company Profit Sharing
Contributions and Retirement Account Contributions in the amount that would have been
credited during the period of Qualified Military Service. The Company Profit Sharing
Contributions and Retirement Account Contributions shall be determined based on either: (a)
the Compensation that the Qualified Veteran would have received during the period of
Qualified Military Service if he or she had continued to be employed by the Employer,
determined by the Committee in accordance with the Code and applicable regulations; or (b)
if the amount in clause (a) is not reasonably certain, the Qualified Veteran’s Compensation
from the Employer during the 12-month period (or, if shorter, his or her actual period of
continuous service with the Employer) immediately preceding the start of such Qualified
Military Service. Notwithstanding the foregoing, the amounts contributed under this
subsection (b) shall be limited by application of Article 6 during the year(s) to which the
contributions relate and shall be reduced by any Company Profit Sharing Contributions and
Retirement Account Contributions actually made on behalf of the Qualified Veteran during
such period of Qualified Military Service.

107

 

     Section G.05 Qualified Veteran. An individual with Qualified Military Service who is
entitled to reemployment rights as described in Code Section 414(u)(5).

     Section G.06 Qualified Military Service. Service in the uniformed services (as
described in Code Section 414(u)(5)) that entitles an individual to reemployment rights as
described in Code Section 414(u)(5).

     Section G.07 Maximum Make-Up Amount. This amount is equal to (a) minus (b) as
follows:

     (a) The amount of contributions that the Qualified Veteran would have been permitted to
make during the period of Qualified Military Service if the Qualified Veteran had continued
to be employed in the same position by an Employer.

     (1) This amount is determined by treating the Qualified Veteran as having
received compensation from the Employer during the Qualified Military Service equal
to:

     (A) The compensation that the Qualified Veteran would have received
during the period of Qualified Military Service if the Qualified Veteran had
continued to be employed by the Employer, determined by the Committee in
accordance with the Code and applicable regulations; or

     (B) If the amount in subparagraph (A) is not reasonably certain, the
Qualified Veteran’s average compensation from the Employer during the
twelve-month period (or, if shorter, such period of total employment)
immediately preceding the start of Qualified Military Service.

     (2) This amount is limited by application of Code Sections 402(g) and 415
during the year(s) to which the contributions relate (i.e., during the Qualified
Military Service).

     (b) The amount of any contributions actually made by the Qualified Veteran during his
or her Qualified Military Service.

     Section G.08 Make-Up Period. The period that,

     (a) begins on the date that the Qualified Veteran is reemployed by an Employer, and

     (b) ends upon the earlier of:

     (1) the last day of the period that extends for three times the Qualified
Veteran’s Qualifying Military Service; or

     (2) the date that is five years from the date of reemployment.

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APPENDIX H

Employee Stock Ownership Plan

ARTICLE H1

General Provisions

     Section H1.01 Single Plan. The ESOP is a part of the Plan. The ESOP and the Plan
constitute a single plan. References to “the Plan” mean the entire Huntington Ingalls Industries
Savings Plan, including the ESOP.

     Section H1.02 Application of Savings Plan Provisions. The provisions of the Plan
apply to the ESOP, except as modified by the ESOP provisions. The only investment available under
the ESOP is the Huntington Ingalls Industries Fund (except for amounts diversified under Article
H10).

     Section H1.03 Form of Contributions. Any contributions made to the ESOP may be made
in the form of cash or Qualifying Securities at the discretion of the Company.

     Section H1.04 Vesting. Allocations to ESOP Accounts vest in the same manner as
Company Matching Contributions. Qualifying Securities will be forfeited only after other assets in
accordance with Treasury Regulation Section 54.4975-11(d)(4).

     Section H1.05 Forfeitures. Non-vested amounts under the ESOP are forfeited, restored
and applied to Company Matching Contributions in the same manner as non-vested amounts under the
Plan generally.

     Section H1.06 Section 415 Limitations. In the event the ESOP obtains a loan, the
limitations of Code Section 415 (see Appendix A) will be based on contributions made to repay the
loan which are allocated to a Participant’s ESOP Account rather than with respect to amounts
released from the Suspense Account and allocated to a Participant’s Account.

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ARTICLE H2

Loan Requirements

     Section H2.01 In General. The Board may direct that the ESOP obtain a loan to
purchase Qualifying Securities or to repay a prior loan for the purchase of Qualifying Securities.

     Section H2.02 Use of Loan Proceeds. The proceeds of any loan must be used within a
reasonable time after their receipt only for any or all of the following purposes:

     (a) To acquire Qualifying Securities.

     (b) To repay the loan.

     (c) To repay a prior loan.

     Section H2.03 Price of Securities. The Trustee shall take all appropriate and
necessary measures to ensure that the Plan trust pays no more than “adequate consideration” (within
the meaning of ERISA Section 3(18)) for Qualifying Securities.

     Section H2.04 Suspense Account. All Qualifying Securities acquired with the proceeds
of a loan must be placed unallocated in the Suspense Account established by the Trustee. To the
extent required for the purpose of pledging Qualifying Securities as collateral for a loan, the
shares held as collateral in the Suspense Account may be physically segregated from other Trust
assets.

     Section H2.05 Restrictions on Securities. No security acquired with the proceeds of a
loan may be subject to a put, call, or other option, or buy-sell or similar arrangement while held
by and when distributed from the ESOP, whether or not the ESOP is still an ESOP at the time.

     Section H2.06 Liability and Collateral. Any loan must be without recourse against the
Plan.

     (a) The only assets of the ESOP that may be given as collateral on a loan are
Qualifying Securities that were acquired with the proceeds of the loan and those that were
used as collateral on a prior loan repaid with the proceeds of the current loan.

     (b) No person entitled to payment under a loan may have any right to assets of the ESOP
other than:

     (1) Collateral given for the loan;

     (2) Contributions (other than contributions of Qualifying Securities) that are
made under the ESOP to meet its obligations under the loan; and

     (3) Proceeds from the disposition of Qualifying Securities.

     (4) Earnings attributable to such collateral and the investment of such
earnings and contributions and proceeds under (2) and (3).

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     Section H2.07 Release of Collateral. A loan must provide for the release of
collateral in accordance with the provisions of Article H4.

     Section H2.08 Payments. Payments made with respect to a loan during a Plan Year may
not exceed an amount equal to the sum of:

     (a) Contributions (and their earnings) made to the ESOP to meet its obligations under
the loan minus such payments in prior years,

     (b) Dividends (and their earnings) on Qualifying Securities held under the ESOP, and

     (c) Proceeds (and their earnings) from the disposition of Qualifying Securities held in
the Suspense Account.

     Section H2.09 Separate Accounting. Amounts used to make loan payments under the
preceding Section must be separately accounted for until the loan is repaid.

     Section H2.10 Default. In the event of default on a loan, the value of Plan assets
transferred in satisfaction of the loan may not exceed the amount of default. If the lender is a
Disqualified Person, a loan must provide for a transfer of Plan assets upon default only upon and
to the extent of the failure of the Plan to meet the payment schedule of the loan.

     Section H2.11 Interest Rate. The interest rate on a loan may not be in excess of a
reasonable rate of interest, taking into account the amount and duration of the loan, the security
and guarantee (if any) involved, the credit standing of the ESOP and the guarantor (if any), and
the interest rate prevailing for comparable loans. A variable interest rate may be reasonable.

     Section H2.12 Loan Term. Any loan obtained by the ESOP must be for a specific term.
A loan may not be payable at the demand of any person, except in the case of default.

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ARTICLE H3

Loan Repayments

     Section H3.01 Ordering Rule. Loan repayments will generally be made from the
following sources in the following order:

     (a) Dividends on Qualifying Securities held in the Suspense Account.

     (b) Dividends on Qualifying Securities actually allocated to Participants’ ESOP
Account.

     (c) Company Matching Contributions under the ESOP.

To the extent only a portion of categories (b) or (c) are needed, amounts in a category will be
taken pro rata from each Participant’s ESOP Account based on the ratio of the Participant’s
Dividends or Company Matching Contributions for the month to the total amount taken from the
particular category.

     Section H3.02 Special Contributions. Special Contributions may also be used to repay
a loan. For purposes of the ordering rule of the preceding Section, Special Contributions will be
treated as allocated Dividends or Company Matching Contributions to the extent allocated on the
basis of such Dividends or Contributions respectively. To the extent that Special Contributions
are allocated on the basis of Compensation, they will be used to make loan repayments only after
the amounts in (a), (b) and (c) of the preceding Section.

     Section H3.03 Use of Qualifying Securities. Proceeds from the sale of Qualifying
Securities may be used to repay a loan. The Committee will determine in what order such proceeds
will be used for loan repayments in relation to the amounts specified in Section H3.01 and Section
H3.02.

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ARTICLE H4

Suspense Account

     Section H4.01 Application. The rules of this Article apply whether or not Qualifying
Securities are given as collateral for any loan.

     Section H4.02 Suspense Account. All Qualifying Securities acquired from the proceeds
of a loan (and any proceeds from the disposition of such Qualifying Securities) are held
unallocated in the Suspense Account until released from the Suspense Account in accordance with
this Article.

     Section H4.03 Income. Any income on Qualifying Securities and any earnings on such
income held in the Suspense Account will also be retained unallocated in the Suspense Account
except to the extent used to pay off an ESOP loan.

     Section H4.04 Rights to Suspense Account Amounts. No Participant or beneficiary will
have any right to any amounts in the Suspense Account until an amount is released from the Suspense
Account and allocated to his or her ESOP Account.

     Section H4.05 General Rule for Release from Suspense. Unless the special election
described below is made, amounts held in the Suspense Account will be released from suspense as
follows:

     (a) As of the close of each calendar month during the duration of a loan, the number of
Qualifying Securities released must equal the number of Qualifying Securities held
immediately before release multiplied by a fraction:

     (1) The numerator of the fraction is the amount of principal and interest paid
for the month.

     (2) The denominator of the fraction is the sum of the numerator plus the
principal and interest to be paid for all future months.

     (b) The number of future months under the loan must be determined without taking into
account any possible extension or renewal periods.

     (c) If the interest rate under the loan is variable, the interest to be paid in the
future must be computed by using the interest rate applicable as of the end of the month of
the allocation.

     (d) If collateral includes more than one class of securities, the number of securities
of each class to be released for a Plan Year must be determined by applying the same
fraction to each class.

     Section H4.06 Special Election. The Committee may elect (at the time a loan is
obtained) or the terms of a loan may provide for the release of Qualifying Securities from the
Suspense Account based solely on the ratio that the payment of principal for each Plan Year

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bears to the total principal amount of the loan. This method may be used only if the
following rules are met:

     (a) The loan must provide for annual payments of principal and interest at a cumulative
rate that is not less rapid at any time than level annual payment of such amounts for 10
years.

     (b) The interest included in any payment is disregarded only to the extent that it
would be determined to be interest under standard loan amortization tables.

     (c) This special election is not applicable from the time that, by reason of a renewal,
extension, or refinancing, the sum of the expired duration of the original loan, the renewal
period, the extension period, and the duration of a new exempt loan exceeds 10 years.

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ARTICLE H5

Company Contributions

     Section H5.01 Special Company Contributions. The Affiliated Companies may make
special additional contributions to the ESOP not otherwise called for by the Plan. The decision
whether to make such Special Contributions and the amount of any such contributions will be in the
sole discretion of the Board.

     Section H5.02 Allocation of Special Contributions. In the event that the Affiliated
Companies decide to make a Special Contribution under Section H5.01, the ESOP will be amended to
specify how the Special Contribution will be allocated.

     Section H5.03 Section 415 Limitations. Allocations to a Participant’s ESOP Account
under this Article will be subject to the limitations of Code Section 415 (see Appendix A).

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ARTICLE H6

Dividends

     Section H6.01 In General. This Article provides for the treatment of Dividends.
These rules apply to Dividends on Qualifying Securities held in the Suspense Account as well as
those already allocated to ESOP Accounts.

     Section H6.02 Allocation of Dividends. Dividends on Qualifying Securities held in the
Suspense Account will be held in the Suspense Account. Dividends on Qualifying Securities already
allocated to a Participant’s ESOP Account will be allocated to that ESOP Account.

     Section H6.03 Loan Repayments. If the ESOP has an outstanding loan, Dividends will be
used to the maximum extent possible to repay the loan. Dividends will be taken first from the
Suspense Account and then from Participants’ ESOP Accounts in proportion to the amount of Dividends
in each ESOP Account.

     Section H6.04 Excess Dividends.

     (a) Cash Dividends. Cash Dividends that are not applied (or to be applied) to
loan repayments under the preceding Section are subject to the election provided under Code
Section 404(k)(2)(A)(iii). Each Participant will be provided, on a quarterly basis, with an
option to have cash Dividends:

     (1) Distributed to the Participant no later than 90 days after the close of the
Plan Year in which the cash Dividends are paid to the Plan; or

     (2) Paid to the Plan and reinvested in Qualifying Securities in the
Participant’s Account.

If a Participant fails to make an election, the cash Dividends will be paid to the Plan and
reinvested in Qualifying Securities in the Participant’s Account. Participants will be fully vested
in cash Dividends with respect to which an election under this Section is offered.

     (b) Stock Dividends. Stock Dividends are not applied to loan repayments and are
not subject to the election in (a). Stock Dividends on Qualifying Securities already
allocated to a Participant’s ESOP Account will be allocated to that ESOP Account as
Qualifying Securities.

     Section H6.05 Conditioned on Deductibility. Distribution of Dividends under the
preceding Section will be made only if the Committee can reasonably determine that the distributed
Dividends will be deductible for federal income tax purposes by the Company under the provisions of
the Code, including Code Section 404(k) or any successor provision.

     Section H6.06 Direct Distribution of Dividends. The Company may, in its discretion,
distribute Dividends directly to Participants rather than paying them to the Plan for distribution
to Participants.

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     Section H6.07 Meaning of “Participant”. For purposes of this Article, the term
“Participant” includes a beneficiary who retains credit under an ESOP Account following a
Participant’s death.

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ARTICLE H7

Allocations of Suspense Account Amounts

     Section H7.01 In General. Qualifying Securities and other amounts released from the
Suspense Account are allocated to Participants’ Accounts under the rules of this Article.

     Section H7.02 Release from Suspense Account. Amounts released from the Suspense
Account are allocated as of the close of each month in the following order (until all amounts
available for allocation are used up):

     (a) First, to the extent Dividends on Qualifying Securities allocated to a
Participant’s ESOP Account (which includes a beneficiary’s ESOP Account) are used to make a
loan payment, Qualifying Securities with a fair market value equal to the greater of the
following two amounts will be allocated to the Participant’s ESOP Account:

     (1) The amount of the dividend that would have been allocated to the
Participant’s Account but for the loan payment.

     (2) The amount determined by multiplying the total amount released from
suspense for the month by the ratio of the amount determined in (1) to the total
loan payment for the month.

     (b) Second, to the extent Company Matching Contributions on behalf of a Participant are
used to make a loan payment, the greater of the following two amounts will be allocated to
the Participant’s ESOP Account:

     (1) The amount of the Company Matching Contribution that would have been
allocated to the Participant’s Account but for the loan payment.

     (2) The amount determined by multiplying the total amount released from
suspense for the month by the ratio of the amount determined in (1) to the total
loan payment for the month.

     (c) Third, an amount will be allocated with respect to Dividends on Qualifying
Securities held in the Suspense Account.

     (1) This amount will be determined by multiplying the total amount released
from suspense for the month by the ratio of the unallocated Dividends used to make a
loan payment for the month to the total loan payment for the month. If this is
greater than the amount which remains to be allocated after (a) and (b), then such
lesser amount will be allocated under this paragraph (c).

     (2) The amount determined in (1) will be allocated to Participants based on the
ratio of the Company Matching Contributions allocated to their ESOP Accounts for the
month to the total Company Matching Contributions allocated to ESOP Accounts for the
month.

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     (d) Fourth, if any amounts remain, they will be allocated in proportion to Compensation
for the Plan Year to the ESOP Account of all Participants who have a contribution made to
the ESOP for the month or to Participants who are Eligible Employees as of the last day of
the month, depending on which group received an allocation of Special Contributions for the
month (see Section H5.02).

     Section H7.03 Allocation of Amounts Attributable to Special Contributions. Special
Contributions will be treated as Dividends under (a) of the preceding Section or Company Matching
Contributions under (b) of the preceding Section if they are allocated on the basis of such
Dividends or Company Matching Contributions respectively.

     Section H7.04 Release of Collateral. Amounts released from the Suspense Account will
not necessarily correspond to the amount of collateral released each year. The amount of
collateral released will depend on the terms of a loan and whether securities purchased with the
proceeds of a loan increase or decrease in value.

     Section H7.05 Section 415 Limits. Amounts released from the Suspense Account during a
year and allocated to Participants’ ESOP Accounts are not counted as “annual additions” for
purposes of Code Section 415 (see Appendix A).

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ARTICLE H8

Voting Rights and Tender Offers

     Section H8.01 In General. Qualifying Securities may be subject to an offer to
purchase or otherwise acquire from time to time. In addition, Qualifying Securities may carry the
right to vote on particular (or all) issues subject to a vote by shareholders of the Company and
such votes may be subject to proxy solicitations. This Article sets forth provisions governing
responses to such offers for and such voting of Qualifying Securities held under the Trust
Agreement and for responses to proxy solicitations. The provisions of this Article, and the
corresponding provisions in the Huntington Ingalls Industries Defined Contribution Plans Master
Trust are to be construed identically.

     Section H8.02 Voting of Qualifying Securities. Shares of Qualifying Securities shall
be voted by the Trustee only in accordance with directions from Participants as provided below:

     (a) Participants Entitled to Vote: Participants entitled to instruct the
Trustee with regard to voting shall be those Participants, including beneficiaries, (the
“Eligible Voting Participants”) who retain credit under an ESOP Account. The list of
Eligible Voting Participants will be fixed by the Committee as of the Determination Date for
purposes of this Section, which shall be the last day of the month next preceding the record
date established by the Board for the matter or matters to be voted on. However, if such
Determination Date is less than twenty-five days prior to such record date, the applicable
Determination Date shall be the last day of the second preceding month. Eligible Voting
Participants shall be named fiduciaries (under ERISA Section 403(a)(1)) for purposes of
directing the Trustee under this Section.

     (b) Allocation of Shares: The number of shares initially allocated to an
Eligible Voting Participant for purposes of voting will be the number (calculated to five
decimal places) obtained by (1) dividing the number of shares of Qualifying Securities held
in the Huntington Ingalls Industries Fund (as defined in the Plan’s Trust Agreement) of the
Plan as of the close of business on the applicable Determination Date by the number of units
in the Huntington Ingalls Industries Fund credited to the accounts of all Eligible Voting
Participants as of such Determination Date, and (2) multiplying the quotient so obtained by
the number of units in the Huntington Ingalls Industries Fund credited to the account of
such Eligible Voting Participant as of the close of business on such Determination Date.

     (c) Notification of Participants: In connection with the solicitation of
proxies, the Company, on behalf of the Trustee, shall notify all Eligible Voting
Participants of their rights with respect to voting and:

     (1) shall furnish to the Eligible Voting Participants all soliciting and other
materials furnished to the Company’s shareholders generally concerning the matter or
matters to be voted on;

     (2) shall solicit for the Trustee voting instructions from the Eligible Voting
Participants concerning such matter or matters;

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     (3) shall state in the notice the date as of which instructions must be
received by the Company from Eligible Voting Participants in order to be considered
timely;

     (4) shall notify each Eligible Voting Participant in writing of the number of
shares of Qualifying Securities as to which such Eligible Voting Participant is
entitled to give voting instructions to the Trustee under Section H8.02(b); and

     (5) shall state in such notice that the Eligible Voting Participant’s
instructions shall also apply to his or her portion of the undirected shares
(described below).

     (d) Voting of Shares: Each Eligible Voting Participant is entitled to direct
the Trustee with respect to the voting of the shares allocated to such Eligible Voting
Participant under Section H8.02(b) as well as the Eligible Voting Participant’s portion of
undirected shares. The Trustee shall follow timely and proper instructions received from
Eligible Voting Participants.

     (1) The portion of undirected shares allocable to each Eligible Voting
Participant from whom timely and proper directions are received shall be equal to
the total number of undirected shares multiplied by a fraction. The numerator of
the fraction shall be the number of shares allocated to the Eligible Voting
Participant under Section H8.02(b) and the denominator of the fraction will be the
total number of shares allocated under Section H8.02(b) to Eligible Voting
Participants from whom timely and proper instructions are received.

     (2) The total number of undirected shares shall be the sum of all shares for
which timely and proper instructions are not received, shares credited to the
Huntington Ingalls Industries Fund after the applicable Determination Date but on or
before the record date for the vote in question, less undirected shares sold or
otherwise disposed of by the Huntington Ingalls Industries Fund after the applicable
Determination Date but on or before such record date, and shares held in a suspense
account and not allocated to Participants’ accounts as of the Determination Date.

     (e) Action by Trustee: As soon as practicable prior to the annual meeting or
other meeting or voting deadline for which proxies have been solicited, the Trustee shall
execute and deliver to the Company a proxy or proxies which accord with the rules of Section
H8.02(b).

     Section H8.03 Tender Offers, etc.: In the event any offer is made to shareholders
generally by any person, corporation or other entity (the “Offeror”) to purchase or otherwise
acquire any or all of the Company’s Qualifying Securities, including Qualifying Securities then
held in the Huntington Ingalls Industries Fund (an “Offer”), such Qualifying Securities shall be
tendered for sale or exchange by the Trustee only in accordance with directions from Participants
as provided below:

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     (a) Participants Entitled to Direct Trustee: Participants entitled to instruct
the Trustee with regard to an Offer shall be those Participants, including beneficiaries,
(the “Eligible Tender Offer Participants”) who retain credit under an ESOP Account. The
list of Eligible Tender Offer Participants will be fixed as of the Determination Date for
purposes of this Section, which shall be the last day of the month next preceding the date
on which copies of the offer or invitation for tenders are first published or sent or given
to the Company’s shareholders. However, if such Determination Date is less than twenty-five
days prior to such date on which copies of the offer or invitation for tenders are first so
published or sent or given, the applicable Determination Date shall be the last day of the
second preceding month. Eligible Tender Offer Participants shall be named fiduciaries
(under ERISA Section 403(a)(1)) for purposes of directing the Trustee under this Section.

     (b) Allocation of Shares: The number of shares initially allocated to an
Eligible Tender Offer Participant for purposes of directing a response to an Offer will be
the number (calculated to 5 decimal places) obtained by (1) dividing the number of shares of
Qualifying Securities held in the Huntington Ingalls Industries Fund of the Plan as of the
close of business on the applicable Determination Date by the number of units in the
Huntington Ingalls Industries Fund credited to the accounts of all Eligible Tender Offer
Participants as of such Determination Date, and (2) multiplying the quotient so obtained by
the number of units in the Huntington Ingalls Industries Fund credited to the account of
such Eligible Tender Offer Participant as of the close of business on such Determination
Date.

     (c) Notification of Participants: In connection with the solicitation of
instructions, the Company, on behalf of the Trustee, shall notify all Eligible Tender Offer
Participants of their rights with respect to directing the disposition of shares under this
Section H8.03 and:

     (1) shall furnish to the Eligible Tender Offer Participants all materials and
written information furnished to the Company’s shareholders generally by the Offeror
and by the Company in connection with the Offer;

     (2) shall solicit for the Trustee instructions from the Eligible Tender Offer
Participants concerning the Offer;

     (3) shall state in the notice the date as of which instructions must be
received by the Company from Eligible Tender Offer Participants in order to be
considered timely;

     (4) shall notify each Eligible Tender Offer Participant in writing of the
number of shares of Qualifying Securities as to which such Eligible Tender Offer
Participant is entitled to give instructions to the Trustee under Section H8.03(b);
and

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     (5) shall state in such notice that the Eligible Tender Offer Participant’s
instructions shall also apply to his or her portion of the undirected shares
(described below).

     (d) Direction of Shares: Each Eligible Tender Offer Participant is entitled to
give the Trustee instructions that are consistent as to all (but not less than all) of the
shares allocated to such Eligible Tender Offer Participant under Section H8.03(b) as well as
the Eligible Tender Offer Participant’s portion of undirected shares. For instance, the
Eligible Tender Offer Participant may direct the Trustee to tender all such shares, or not
to tender all such shares. The Trustee shall follow timely and proper instructions received
from Eligible Tender Offer Participants.

     (1) The portion of undirected shares allocable to each Eligible Tender Offer
Participant from whom timely and proper directions are received shall be equal to
the total number of undirected shares multiplied by a fraction. The numerator of
the fraction shall be the number of shares allocated to the Eligible Tender Offer
Participant under Section H8.03(b) and the denominator of the fraction will be the
total number of shares allocated under Section H8.03(b) to Eligible Tender Offer
Participants from whom timely and proper instructions are received.

     (2) The total number of undirected shares shall be the sum of all shares for
which timely and proper instructions are not received, shares credited to the
Huntington Ingalls Industries Fund after the applicable Determination Date but on or
before the record date for the vote in question, less shares sold or otherwise
disposed of by the Huntington Ingalls Industries Fund after the applicable
Determination Date but on or before such record date, and shares held in the
Suspense Account and not allocated to Participants’ ESOP Accounts as of the
Determination Date.

     (3) The Trustee will tender undirected shares proportionately from all
Participants’ Accounts (as well as the Suspense Account) that contain undirected
shares. For example, if the Trustee receives directions that are, in the aggregate,
25% in favor of tendering and 75% against tendering, it will tender one share from
an account with four undirected shares.

     (e) Withdrawals of Shares: In the event, under the terms of an Offer or
otherwise, any shares of Qualifying Securities tendered for sale or exchange pursuant to
such Offer may be withdrawn from such Offer, the Trustee will follow timely and proper
instructions from Eligible Tender Offer Participants respecting the withdrawal of shares
from the Offer in the same manner as instructions under Section H8.03(d).

     (f) Multiple Offers: If more than one Offer is made covering overlapping time
periods for Qualifying Securities in the Huntington Ingalls Industries Fund, the Trustee
will follow the rules of this Section H8.03 with respect to all such Offers. This may
require (1) more than one notification to Eligible Tender Offer Participants under Section
H8.03(c); (2) soliciting instructions from Eligible Tender Offer Participants as to

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whether they wish to withdraw shares from one Offer and tender them for sale or
exchange under another Offer, and (3) soliciting instructions from Eligible Tender Offer
Participants who have rejected one Offer to see whether they wish to direct the tender of
shares for sale or exchange under another Offer.

     (g) Allocation of Shares Accepted by Offeror: In the event that the Offeror
takes up and pays for fewer than all of the shares tendered for sale or exchange by the
Trustee on behalf of Eligible Tender Offer Participants, then the Trustee shall, to the
extent necessary, reduce the number of shares proffered from each account proportionately.
The Trustee shall use a random method to the extent necessary to allocate any residual
fractional shares between accounts.

     (h) Treatment of Proceeds: In the event that shares are tendered for sale or
exchange on behalf of an Eligible Tender Offer Participant pursuant to this Section, the
proceeds (cash or otherwise) received upon the acceptance of such tender or exchange by the
Offeror shall be credited to the Company Matching Contributions portion of the Account of
such Eligible Tender Offer Participant. The cash proceeds so credited shall purchase units
and fractions of units in the Plan’s funds other than the Huntington Ingalls Industries Fund
(as defined in the Plan), in accordance with the allocation then in effect for such Eligible
Tender Offer Participant’s own contributions. The non-cash proceeds (if any) so credited
shall be held by the Trustee pending further instructions from the Investment Committee.

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ARTICLE H9

Investments

     Section H9.01 Huntington Ingalls Industries Fund. Except as otherwise provided in the
Trust Agreement, all amounts held under the ESOP and not diversified under Article H10 shall be
held in the Huntington Ingalls Industries Fund under the Trust Agreement and shall be used to
purchase Qualifying Securities.

     (a) Cash set aside to meet ongoing liquidity needs and amounts temporarily liquid
pending investment in Qualifying Securities may be invested in obligations of the federal
government (including any agency or instrumentality thereof), certificates of deposit, any
common or group trust funds maintained by the Trustee or other bank or trust company, and in
commercial paper other than obligations of Huntington Ingalls Industries, Inc.

     (b) Purchases of Qualifying Securities may be made from or through any source including
the Company or a Participant.

     (c) Rights, options, or warrants offered to purchase Huntington Ingalls Industries,
Inc. stock shall be exercised by the Trustee to the extent that there is cash available for
investment. To the extent cash is not available, the same shall be sold on the open market.

     (d) Conversion of convertible preferred stock shall be accomplished at the discretion
of the Trustee. Stock distributions shall be made only in Huntington Ingalls Industries,
Inc. common stock that is publicly traded and is not subject to a trading limitation. For
these purposes, a “trading limitation” on a security is a restriction under any federal or
state securities law, any regulation under a federal or state securities law, or any
agreement affecting the security that would make the security not as freely tradable as one
not subject to such restriction. The preceding sentence is to be construed in accordance
with Treasury Regulation Section 54.4975-7(b)(10).

     Section H9.02 Primary Investment. Funds held under the ESOP are to be primarily
invested in Qualifying Securities as required by ERISA and the Code, except to the extent
diversified under Article H10.

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ARTICLE H10

Diversification

     Section H10.01 In General. This Article provides for the diversification of
investments under the ESOP in certain circumstances for Participants meeting certain conditions.

     Section H10.02 Eligibility. Each Participant is immediately eligible for the
diversification election described below, notwithstanding his or her Years of Service.

     Section H10.03 Diversification Election. A Participant eligible to make the
diversification election may elect to diversify up to 100% of his or her ESOP Account.

     (a) Diversification consists of transferring amounts among the ESOP Account and one or
more of the other investment funds under the Plan.

     (b) The general rules under the Plan applicable to transfers between investment funds
will apply.

     Section H10.04 Timing of Election. A Participant may elect to diversify at any time.
Elections must be made according to the rules and procedures of the Committee.

126

 

ARTICLE H11

Distributions

     Section H11.01 Application. The distributions rules of this Article are in addition
to the regular distributions rules of the Plan and are not intended to supplant those rules.

     Section H11.02 Timing of Distributions. The distribution of the vested portion of a
Participant’s ESOP Account will be made at the same time as his or her distribution under the Plan,
as soon as possible after the election of distribution.

     Section H11.03 Exception for Financed Securities. That portion of a Participant’s
ESOP Account which includes Qualifying Securities acquired with the proceeds of a loan will not be
distributed until the close of the Plan Year in which the loan is repaid in full.

     Section H11.04 Form of Distributions. Participants may elect to receive between
1-100%, in whole percentages, of the amounts in their ESOP Account in the form of Qualifying
Securities. Any amount not distributed in the form of Qualifying Securities will be distributed in
cash.

     Section H11.05 Condition of Distributions. The rules for distributions under the ESOP
are all conditioned on the present requirement that stock distributions shall be made only in
Huntington Ingalls Industries, Inc. common stock that is publicly traded and is not subject to a
trading limitation (see Section H9.01(d)), and the absence of any investments in Qualifying
Securities other than such common stock. Should these conditions change in the future, the ESOP
may be amended to provide for other distribution rules.

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ARTICLE H12

Termination

     Section H12.01 Termination. In addition to the general termination provisions of the
Plan, the ESOP shall terminate if the Company does not receive an initial determination from the
IRS that the ESOP qualifies as an ESOP under Code Section 4975(e)(7) or if changes in the law
prevent a deduction under Code Section 404(k) of all Dividends under the ESOP that are applied to
repay a loan or passed-through to Participants.

128

 

APPENDIX I

Huntington Ingalls Industries Transfer Provisions

ARTICLE I1

Application and Definitions

     Section I1.01 Application. The provisions of this Appendix I provide special rules
governing the spin-off of the shipbuilding businesses of the Northrop Grumman Group to the
Affiliated Companies.

     Section I1.02 Definitions. The following definitions apply exclusively for purposes
of this Appendix I:

     (a) Delayed Transfer Employee. An employee whose employment transfers upon
mutual agreement of Huntington Ingalls Industries, Inc. and Northrop Grumman Corporation,
within 45 days after the Spin-Off, from the Northrop Grumman Group to the Affiliated
Companies or from the Affiliated Companies to the Northrop Grumman Group because the
employee was inadvertently and erroneously treated as employed by the wrong employer on the
Distribution Date, and who was continuously employed by a member of the Affiliated Companies
or the Northrop Grumman Group (as applicable) from the Distribution Date through the date
such employee commences active employment with a member of the Northrop Grumman Group or the
Affiliated Companies (as applicable). Notwithstanding anything herein to the contrary, the
mutual agreement with respect to, and actual commencement of employment with the Affiliated
Companies or the Northrop Grumman Group (as applicable) of, any Delayed Transfer Employee
must occur on or before 45 days after the Distribution Date.

     (b) Distribution Date. The date Northrop Grumman Group distributes to its
stockholders its entire interest in the Affiliated Companies by way of a stock dividend.

     (c) Northrop Grumman Group. The Northrop Grumman Corporation and all members
of the Northrop Grumman Corporation’s controlled group as determined under Code Section 414.

129

 

ARTICLE I2

Transfers and Rehires

     Section I2.01 Service Credit. For Eligible Employees transferred to the Affiliated
Companies on the Distribution Date or as Delayed Transfer Employees, the Affiliated Companies shall
provide credit under the Plan for service before the Distribution Date with the Affiliated
Companies and the Northrop Grumman Group for purposes of calculating Years of Service to the same
extent that such service was recognized under the relevant Northrop Grumman Group employee benefit
plans; provided, however, that the Plan shall apply any applicable break-in-service rules, to the
extent provided under the Plan, as if such service was service with the Affiliated Companies.
Additionally, a Delayed Transfer Employee’s service with the Northrop Grumman Group following the
Distribution Date shall be recognized for purposes of Years of Service under the Plan, subject to
the otherwise applicable provisions. Notwithstanding the prior provisions of this Section I2.01,
no employee shall receive duplicative service under the Plan and an employee benefit plan
maintained by the Northrop Grumman Group.

     Section I2.02 Former Employees. If a former Employee of the Northrop Grumman Group
becomes employed by the Affiliated Companies other than on the Distribution Date or as a Delayed
Transfer Employee, then the Plan will not recognize for any purpose such individual’s service with
the Northrop Grumman Group before or after the Distribution Date, except to the extent required by
law.

     Section I2.03 Continuation of Elections. The Company shall cause the Plan to
recognize and maintain all elections of a Participant, beneficiary or alternate payee in effect
under the Northrop Grumman Savings Plan immediately prior to the transfer of his or her account(s)
from the Northrop Grumman Savings Plan to the Plan, including, but not limited to, deferral,
investment and payment form elections, beneficiary designations and the rights of alternate payees
under qualified domestic relations orders; provided, however, that investment elections relating to
the Northrop Grumman Fund shall be deemed to apply to the qualified default investment alternative
as determined under Section 9.03(e) unless otherwise specified by the Investment Committee.

     Section I2.04 Transfers to the Northrop Grumman Group. In the event that a
Participant returns to employment with the Northrop Grumman Group as a Delayed Transfer Employee,
the Company shall cause the Plan to transfer to the applicable Northrop Grumman Group employee
benefit plan the accounts, liabilities and related assets in the Plan attributable to such
Participant (and his or her alternate payees, if any) as soon as reasonably practicable following
the date of rehire by the Northrop Grumman Group. The transfer of assets shall be in cash and
include outstanding loan balances and forfeitures and be conducted in accordance with Code Section
414(l) and Treasury Regulation Section 1.414(1)-1, and ERISA Section 208. In the event that a
Participant returns to employment with the Northrop Grumman Group other than as a Delayed Transfer
Employee, the Plan has no obligation to make any transfer to the applicable Northrop Grumman Group
employee benefit plan other than as may be otherwise required by law or other terms of the Plan.

130

 

ARTICLE I3

Plan Limits and Non-Discrimination Testing

     Section I3.01 Code Section 401(a)(17) Limits. For the 2011 Plan Year, the Code
Section 401(a)(17) limit on Compensation shall apply to all compensation paid by the Northrop
Grumman Group or the Affiliated Companies. Consequently, all 2011 Plan benefits shall be based on
no more than $245,000 of compensation, regardless of whether such compensation was paid by the
Northrop Grumman Group or the Affiliated Companies.

     Section I3.02 Code Section 415 Limits. For the 2011 Plan Year, the combined benefits
under the Plan, and any defined contribution plan sponsored by the Northrop Grumman Group or the
Affiliated Companies shall not exceed the 2011 Code Section 415 limits, applying such limits as if
all such plans were sponsored within the same controlled group, as defined under Code Section 414.
Consequently, combined benefits under the Plan, and any defined contribution plan sponsored by the
Northrop Grumman Group or the Affiliated Companies shall not exceed the lesser of $49,000 or 100%
of an individual’s total compensation paid by the Northrop Grumman Group or the Affiliated
Companies.

     Section I3.03 Code Section 402(g) Limits. During the 2011 Plan Year, a Participant’s
Tax-Deferred Contributions and Roth Contributions shall be limited to the Code Section 402(g) limit
taking into account any equivalent contributions made by such Participant to a defined contribution
sponsored by the Northrop Grumman Group.

     Section I3.04 Non-Discrimination Testing. All applicable non-discrimination testing
not expressly mentioned above shall be performed by the Plan without reference to any employee
benefit plan sponsored by the Northrop Grumman Group.

131

 

EXHIBIT A

Coverage

Participating Employers

     The following chart provides information regarding the reporting entity, employer, entity
code, and applicable Sub-Plan of each group of Employees eligible to participate in the Plan.
Notwithstanding the information in this Exhibit A, those Employees designated by the Company’s
Chief Executive Officer or the Company’s Corporate Vice President and Chief Human Resources and
Administrative Officer as elected or appointed officers of the Company or any Affiliated Company
shall participate in the Sub-Plan A regardless of the reporting entity, employer, or entity code
with which they are affiliated.

	 	 	 	 	 	 	 	 	 
	Sector	 	Employer	 	Entity
Code	 	Sub-

Plan
	NGSB

	 	Northrop Grumman Shipbuilding, Inc. (non-represented
employees and Abu Dhabi) — excluding Temporary Hourly
	 	 	265	 	 	A
	 
	 	 	 	 	 	 	 	 
	NGSB

	 	Continental Maritime of San Diego, Inc. (non-represented
employees)
	 	 	269	 	 	A
	 
	 	 	 	 	 	 	 	 
	NGSB

	 	Newport News Industrial Corporation (non-represented
employees) — excluding Temporary Hourly
	 	 	272	 	 	A
	 
	 	 	 	 	 	 	 	 
	NGSB

	 	Avondale Industries — NG Ship Systems (Avondale
Non-Represented Employees)
	 	 	130	 	 	CC
	 
	 	 	 	 	 	 	 	 
	NGSB

	 	Northrop Grumman Ship Systems International, Inc.
	 	 	144	 	 	CC
	 
	 	 	 	 	 	 	 	 
	NGSB

	 	Northrop Grumman Ships Systems (non-represented employees)
	 	 	146	 	 	CC
	 
	 	 	 	 	 	 	 	 
	NGSB

	 	Newport News Nuclear Inc. (non-represented) (salaried
employees only)
	 	 	473	 	 	A
	 
	 	 	 	 	 	 	 	 
	NGSB

	 	NNS Energy Inc. (non-represented)
	 	 	492	 	 	A

132

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