SPD NSTEC PENSION.pdf

National Security Technologies, LLC (NSTec) Employee Retirement Plan Summary Plan Description

Effective July 1, 2006; revision 1 dated August 2007

NSTec EMPLOYEE

RETIREMENT PLAN

NATIONAL SECURITY TECHNOLOGIES, LLC

(NSTec) EMPLOYEE RETIREMENT PLAN To retire comfortably, you will need income from several sources, including Social Security, employer pension plans, and personal savings. The National Security Technologies, LLC (NSTec) Employee Retirement Plan (the “Plan”) can provide part of that income in the form of a monthly pension benefit.

For More Information

For administrative information about the Plan, contact the Employee Benefits Office at (702) 295-0321. This Summary Plan Description (SPD) contains important information about the Plan, effective July 1, 2006, as revised through August 1, 2007, and we urge you to read it carefully to become familiar with this valuable benefit. This Plan is sponsored by NSTec.

The benefits described in this document are the benefits currently provided to eligible NSTec employees. NSTec, however, reserves the right to amend or terminate this Plan at any time. The Plan does not constitute a contract of employment, and participation in the Plan does not entitle you to a guarantee of employment.

This SPD describes the terms and conditions governing the Plan available to eligible employees of NSTec. It is not intended to contain a complete description and cannot modify the Plan in any way. Should any conflict arise between this summary and the provisions of the Plan, or if any provision is omitted or only partially covered, the terms of the actual Plan document will govern in all cases. You may review the actual Plan document at any time by contacting the Plan Administrator.

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A QUICK LOOK:

PLAN HIGHLIGHTS

A QUICK LOOK: PLAN HIGHLIGHTS

Eligibility Employees of the Company may join the Plan. Leased employees, non-resident alien employees with no U.S. income, or employees bound by collective bargaining agreements are not eligible to participate in the Plan. See page 1 for more details.

Service Crediting If you participated in a prior plan, your eligible prior plan service will be counted in this Plan. The prior plans are the Raytheon Services Nevada Employee Pension Plan (Raytheon), the EG&G Energy Measurements, Inc. Employees Retirement Plan (EG&G), the Retirement Plan for Employees of Reynolds Electrical & Engineering Co., Inc. (REECo), and the Bechtel Nevada Employee Retirement Plan.

Payment Options The Plan offers several payment options for receiving your retirement benefit, including options that provide for benefits to be paid to your beneficiary following your death.

Death Benefits If you die after becoming vested in your Plan benefit but before benefit payments begin, your surviving spouse is eligible to receive a lifetime monthly benefit.

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TABLE OF CONTENTS

TABLE OF CONTENTS

ELIGIBILITY

SERVICE

Benefit Service Vesting Service

CALCULATING YOUR NORMAL RETIREMENT BENEFIT

Normal Retirement Benefit Formula

WHEN RETIREMENT BENEFITS BEGIN

Normal Retirement Early Retirement Postponed Retirement

WHAT HAPPENS IF

You Leave the Company Before You are Vested You Leave the Company After You are Vested You Leave the Company and You are Rehired You Are a Reemployed Veteran You Are Rehired After Retirement You Become Disabled You Die

HOW YOUR BENEFITS ARE PAID

Automatic Form of Payment Optional Forms of Payment Restrictions on Electing a Payment Option Beneficiaries When You Elect an Option Application for Retirement Benefits Guaranteed Return of Employee Contributions

CIRCUMSTANCES THAT CAN AFFECT YOUR BENEFITS

HOW MUCH THE PLAN COSTS

WHAT ELSE YOU SHOULD KNOW

Top-Heavy Provisions Benefits May Not be Transferred to Others Future of the Plan Plan Administrator Your ERISA Rights Claims Procedure

PLAN INFORMATION

GLOSSARY OF TERMS

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RETIREMENT

PLAN SUMMARY

ELIGIBILITY

Retirement Plan Participation

The information about eligibility in this section applies only to the Retirement Plan.

For eligibility and participation information regarding the Company’s Thrift Plan, see the Employee Thrift Plan Summary Plan Description.

If you are an eligible regular employee of the Company, you automatically become a Plan participant on the date you complete one hour of service with the Company.

“Company” means NSTec.

If you are an eligible intermittent employee, you will join the Plan on either January 1 or July 1 following the date you complete one year of eligibility service. If your status changes to a regular employee prior to joining the Plan, you will join the Plan on the first day you complete one hour of service as a regular employee.

You are not eligible to participate in the Plan if you are:

Covered by a collective bargaining unit that does not participate in the Plan, A leased employee, or A non-resident alien employee with no U.S. income.

An eligible employee does not include (and has not at any time included) any individual during any period he or she is not classified as a common-law employee of the Company, without regard to whether such an individual is subsequently determined to have been a common-law employee of the Company during that period.

Prior Plan Participants If you were a participant in the prior plan (Bechtel Nevada Employee Retirement Plan) on June 30, 2006, you automatically joined the Plan on July 1, 2006.

SERVICE

Benefit Service and vesting service determine the amount of benefit you’ll receive and whether you’re eligible to begin receiving a retirement benefit.

Benefit Service Benefit Service means your service with the Company after June 30, 2006, as well as the Benefit Service you earned under the prior plans before July 1, 2006.

Service Before January 1, 1997: Your Benefit Service is determined according to the terms of the predecessor plans. Special rules apply if you were on an authorized leave of absence on December 31, 1996 and you returned to work with any Affiliated Company after January 1, 1997. Please contact your Plan Administrator for details.

Service On and After January 1, 1997: You earn a year of Benefit Service for each calendar year in which you are credited with 2,080 hours of service as an eligible employee. If you are credited with less than 2,080 hours during the year, you will be credited with a partial year of Benefit Service. Your partial year of Benefit Service equals the result of your completed hours divided by 2,080, calculated to the nearest 1/10 of one percent.

Vesting Service If you leave the Company after completing at least 5 years of vesting service, you will be vested. To be vested means you are entitled to benefits from the Plan, even if your employment terminates before your normal retirement date. You are also vested if you are a participant and an active employee of the Company on your 65th birthday, even if you have not yet completed 5 years of vesting service. Regardless of your vesting service, you are always vested in the portion of your Plan benefit due to your employee contributions and interest in a predecessor plan.

You begin earning vesting service from your hire date. You earn one year of vesting service for each calendar year you are credited with at least 1,000 hours of service.

If you retire or terminate your employment from the Company on or after July 1, 2006, your monthly normal retirement benefit will be based on:

Your years of Benefit Service;

Your Average Monthly Compensation;

Your Primary Social Security Benefit; and Your predecessor plan normal retirement benefit when you terminate your employment from the Company.

CALCULATING YOUR NORMAL RETIREMENT

BENEFIT

Normal Retirement Benefit Formula Your monthly normal retirement benefit is equal to the greatest of three different formulas:

Your Current Benefit: The difference of A minus B:

A) (1.5%) times (your Average Monthly Compensation) times (your actual years of Benefit Service) minus

B) (1.5%) times (your monthly Primary Social Security Benefit) times (your expected years of Benefit Service, maximum of 35 years) – and if you terminate service before your normal retirement age (age 65) – times (your actual years of Benefit Service divided by your expected years of Benefit Service)

Your Updated Plan Benefit: The sum of A plus B:

A) Your predecessor plan monthly normal retirement benefit earned as of December 31, 1995, adjusted if applicable to reflect a withdrawal of employee contributions plus

B) The difference of (1) minus (2):

(1) (1.5%) times (your Average Monthly Compensation) times

(your actual years of Benefit Service completed after December 31, 1995) minus

(2) (1.5%) times (your monthly Primary Social Security Benefit) times (your actual years of Benefit Service completed after December 31, 1995 – the sum of your pre-1996 Benefit Service and post-1995 Benefit Service cannot be greater than 35 years)

Your Predecessor Plan Benefit: Your monthly normal retirement benefit earned under a predecessor plan as of December 31, 1996, before any adjustment to reflect a withdrawal of employee contributions.

Up Close and Personal: Karen’s Pension Benefit

Let’s look at an example, Karen, as to how to calculate her benefit. The example is based on the following hypothetical facts:

Karen’s birth date is June 7, 1968 Her normal retirement date is July 1, 2033 Her hire date with NSTec is October 1, 1998 Her actual Benefit Service is 9 years Her termination date from NSTec is September 30, 2007 Her Average Monthly Compensation is $5,700 Her monthly Primary Social Security Benefit is $1,550

Calculating Karen’s Monthly Retirement Benefit:

1.5% x $5,700 (her Average Monthly Compensation) x 9 years (her actual years of Benefit Service) minus 1.5% x $1,550 (her monthly Primary Social Security Benefit) x 34.75 years (her expected years of Benefit Service) x 9/34.75 (actual years of Benefit Service divided by her expected years of Benefit Service) equals $560 (Karen’s monthly retirement benefit payable at age 65)

Note: Since Karen joined the Plan after December 31, 1995, she does not have an Updated Plan Benefit or a Predecessor Plan Benefit.

Up Close and Personal: John’s Pension Benefit

Let’s look at another example, John, as to how to calculate the benefit under each formula, to see which provides the greatest benefit. The example is based on the following hypothetical facts:

John’s birth date is December 15, 1947 His normal retirement date is January 1, 2013 His Benefit Service after December 31, 1995 is 12 years His actual Benefit Service is 37 years His termination date at NSTec is December 31, 2007 His Average Monthly Compensation is $7,000 His monthly Primary Social Security Benefit is $1,700 His Predecessor Plan Benefit at December 31, 1995 is $925 His Predecessor Plan Benefit at December 31, 1996 is $975

Calculating John’s Monthly Retirement Benefit:

Current Benefit:

A) 1.5% x $7,000 (his Average Monthly Compensation) x 37 years (his actual years of Benefit Service) minus B) 1.5% x $1,700 (his monthly Primary Social Security Benefit) x 35 years

(his expected years of Benefit Service, limited to 35 years) x 37/42 (actual years of Benefit Service divided by his expected years of Benefit Service) equals $3,099 (Current Benefit payable at age 65) Updated Plan Benefit:

A) $925 plus B) (1) minus (2)

(1) 1.5% x $7,000 (his Average Monthly Compensation) x 12 years (his actual years of Benefit Service after December 31, 1995) minus

(2) 1.5% x $1,700 (his monthly Primary Social Security Benefit) x 10 years (his actual years of Benefit Service after December 31, 1995, limited to a total of 35 years for pre-1996 and post-1995 service) equals $1,930 (Updated Plan Benefit payable at age 65) Predecessor Plan Benefit: $975 payable at age 65

The greatest of the Current Benefit ($3,099), the Updated Plan Benefit ($1,930) and the Predecessor Plan Benefit ($975) equals $3,099 (John’s monthly retirement benefit payable at age 65)

Your monthly normal retirement benefit will be adjusted based on when and how your benefit is paid. This is explained in the following sections of this Summary Plan Description (SPD).

The Internal Revenue Service (IRS) limits the maximum salary and benefit that can be provided by the Plan and a combination of plans sponsored by the Company.

You will be notified if these limitations apply to you.

WHEN RETIREMENT BENEFITS BEGIN

Types of Retirement

There are three types of retirement classifications under the Plan:

Normal

Early

Postponed

You can retire on your normal retirement date — or earlier if you terminate service after you are vested in your Plan benefit (see page 10). The Plan also provides for postponed retirement after your normal retirement date.

Normal Retirement Your normal retirement date is the first day of the month falling on or next following your 65th birthday. For example, if you were born on March 1, 1943, your normal retirement date is March 1, 2008. If you were born on March 2, 1943, your normal retirement date is April 1, 2008. On your normal retirement date, you will be entitled to your full normal retirement benefit.

If you participated in a predecessor plan, your normal retirement date is the date, if earlier, as provided in the predecessor plan.

Early Retirement If you terminate your employment after reaching age 55 with 10 or more years of service, you can begin receiving your retirement benefits, reduced as described below, on the first day of any month falling on or next following your termination date from the Company.

However, if any of the following apply to you, your early retirement date is the first day of the month falling on or next following your termination date from the Company after you are age 55 and have completed 5 or more years of vesting service:

If you were a participant in the Retirement Plan for Employees of Reynolds Electrical & Engineering Co., Inc. (REECo) on December 31, 1996, or

If you were a participant in the Security Department working for Bechtel Nevada pursuant to Department of Energy Contract DE-AC08-96NV11718 on August 27, 1998 and you were transitioned to Wackenhut Services, Inc. on or after August 31, 1998 and before October 2, 1998.

You can also decide to wait and receive your unreduced benefits on your normal retirement date. Unless you elect otherwise, benefits cannot be deferred beyond age 65 once you have terminated.

Your early retirement benefit is determined in the same manner as a normal retirement benefit (see page 3). If you decide to commence benefits before your normal retirement date, your benefit amount will be reduced, as described below, to reflect that payments will be made over a longer period of time.

Current Benefit and Updated Plan Benefit: Your Current Benefit and Updated Plan Benefit (as described on page 3) are reduced by 1/15th for each of the years from age 60 to 65, and then 1/30th for each of the years from age 55 to 60 by which your commencement of benefits precedes your normal retirement date. (These reductions are shown on page 10.)

Predecessor Plan Benefit: Your Predecessor Plan Benefit will be actuarially reduced according to the terms of the predecessor plan.

In any event, your early retirement benefit payable from the Plan cannot be less than your predecessor plan early retirement benefit, determined as of December 31, 1996, by the terms of your predecessor plan.

Early Retirement Benefit Example:

Let’s assume that John, from the normal retirement benefit example on page 5, decides to retire early. When he terminates service on December 31, 2007, he is eligible for early retirement because he is at least age 55 and he has completed at least 10 years of vesting service. He retires on January 1, 2008 at age 60. The predecessor plan was the EG&G Energy Measurements, Inc. Employees Retirement Plan (EG&G).

The benefit reduced for early retirement is calculated in a similar manner as his normal retirement benefit, as follows:

John’s monthly early retirement benefit is $2,066, the greatest of the following:

Current Benefit: $3,099 x 0.6667 = $2,066 Updated Plan Benefit: $1,930 x 0.6667 = $1,287 Predecessor Plan Benefit (EG&G Plan) $975 x 0.7900 = $770

Monthly Early Retirement Benefit: $2,066

Postponed Retirement You will continue to participate in the Plan if you continue working for the Company after you reach your normal retirement age. Retirement benefits will begin when you retire. However, if you contributed to the Retirement Plan for Employees of Reynolds Electrical & Engineering Co., Inc. (REECo) or the Raytheon Services Nevada Employee Pension Plan (Raytheon), and did not receive a refund of your contributions, the portion of your Plan benefit due to your employee contributions will not be withheld while you continue working after normal retirement age.

Your monthly postponed retirement benefit under the Current Benefit and Updated Plan Benefit formulas will be calculated as a normal retirement benefit but based on your Benefit Service, Average Monthly Compensation, and Primary Social Security Benefit as of your termination date from the Company. As determined by the terms of the predecessor plan, your Predecessor Plan Benefit as of December 31, 1996 will be adjusted to reflect your postponed retirement date.

If you reached age 70½ after 1987 and before 2002, your benefits commenced by April 1 following the year you reached age 70½ — even if you were still working for the Company. In this case, your benefit was paid in the automatic form of payment (see page 14), unless you elected otherwise. If you attain age 70½ after 2001, your required beginning date will be the date that you separate from service from the Company.

U.S. Department of Labor regulations governing the suspension of benefits during continuing employment after normal retirement age are found in Section 2530.203-3 of the Code of Federal Regulations. If you believe that this suspension of benefits is not appropriate, you may ask for a review of the decision. The review procedure is the same as the claims procedure described on page 25 of this Summary Plan Description (SPD). You may also ask the Employee Benefits Office for a copy of the governing Plan provision.

WHAT HAPPENS IF

You Leave the Company Before You are Vested If you leave the Company before becoming vested, you will not be entitled to any benefits under the Plan.

You Leave the Company After You are Vested If you leave the Company after 5 years of vesting service or after reaching age 65 while actively employed, you will be vested in your Plan benefit. You can begin receiving a reduced benefit on your early retirement date, provided you have completed 10 years of vesting service (or 5 years of vesting service if you were a participant in the Retirement Plan for Employees of Reynolds Electrical & Engineering Co., Inc. Plan (REECo) on December 31, 1996, or if you were an employee for certain Wackenhut Services, Inc.).

Because your retirement benefits will be paid over a longer period of time, your normal monthly retirement benefit will be reduced according to the following schedule:

Age at Retirement

Percent of Normal Retirement Benefit Payable

64 93.33% 63 86.67% 62 80.00% 61 73.33% 60 66.67% 59 63.33% 58 60.00% 57 56.67% 56 53.33% 55 50.00%

If you have less than 10 years of service (and are not a former REECo participant), your benefits will start on your normal retirement date. Your benefit will be paid in the automatic form of payment unless you (and your spouse, if applicable) elect an optional form of payment.

If you contributed to the Raytheon Services Nevada Employee Pension Plan (Raytheon), you can elect to withdraw your employee contributions and interest as a single lump sum. You can make this election at any time after your termination date until the date your retirement benefits commence. Your remaining Plan benefit will be actuarially reduced to reflect this withdrawal.

You Leave the Company and You are Rehired If you leave the Company and are later rehired as an eligible regular employee (see page 1), you will rejoin the Plan on your rehire date if you were a participant when you left. Otherwise you will join the Plan on the first day of the month in which you have satisfied the eligibility requirements (see page 1).

If you were a participant and were vested when you left, you will be given credit for your earlier vesting service and Benefit Service. However, if you received a lump sum payment when you left, your prior Benefit Service will be disregarded.

In some circumstances, your prior vesting service and Benefit Service may be disregarded. If you are not vested and incur a break in service, your service earned prior to the break in service will not be counted if the number of your consecutive years of breaks in service equals or exceeds 5 years. A one-year break in service occurs during any year in which you are not credited with at least 501 hours of service. For example, suppose you leave the Company after 4 years of vesting service and Benefit Service and are rehired after a 3-year absence. Because your absence was less than 5 years, your prior service will continue to be counted.

However, if you are absent because of pregnancy or the birth of your child, the placement of an adopted child in your home, or the care of the child immediately after birth or placement, you will be credited with the hours of service which would normally have been credited without such absence (up to 501 hours) during the first plan year for which a break in service would otherwise have occurred. You will have to provide the Plan Administrator with proof of the reason for your absence. For example, suppose you leave on a maternity leave on January 1, 2002 after completing 4 years of vesting service and Benefit Service and return to work on January 1, 2007.

Because you will be credited with 501 hours of service during the 2002 plan year (January 1, 2002 to December 31, 2002), you will have incurred 4 consecutive one-year breaks in service for 2003 through 2006. Because your consecutive one-year breaks in service were less than 5, your prior service will continue to be counted.

You Are a Reemployed Veteran Federal law gives you certain rights if you voluntarily or involuntarily leave the Company to serve in any of the United States uniformed military services, including the Coast Guard, for active duty or for training. To qualify for these rights, you generally must give the Company advance written or verbal notice of your upcoming leave for military service and you must report back to work within certain periods, depending upon the length of your military service. If you satisfy these requirements, the time you are away for military service will not cause you to incur a break in service and it will be counted for vesting and benefit accrual purposes. For more information, please contact the Employee Benefits Office.

You Are Rehired After Retirement Retirement payments are generally not paid while you are employed by the Company unless you reached age 70½ after 1987 and before 2002.

If you are receiving early retirement benefit payments, and you are reemployed before your normal retirement date, benefit payments will cease during your reemployment. When you later retire, your retirement benefits will be recalculated taking into account your additional compensation and Benefit Service. This amount will be offset by the value of your benefits already paid. In no event would you receive less than your original retirement benefit. You can elect (with spousal consent, if applicable) a different payment form for your entire benefit.

If you are receiving retirement benefits from the Plan and are rehired by the Company as an eligible employee after your normal retirement date, your benefit payments will cease during your reemployment if you are credited with 40 or more hours of service a month. When you later retire, your retirement benefit will be your normal retirement benefit (which is not actuarially increased if under age 70½) calculated to include your additional compensation and Benefit Service as of your postponed retirement date, less an offset for payments already received. In no event would you receive less than your original retirement benefit. You can elect (with spousal consent, if applicable) another payment form for your entire benefit.

U.S. Department of Labor regulations governing this matter can be found in Section 2530.203-3 of the Code of Federal Regulations. If you believe this suspension of benefits is not appropriate, you may ask for a review of the decision. The review procedure is the same as the claims procedure described on page 25 of this Summary Plan Description (SPD). You may also ask the Employee Benefits Office for a copy of the governing Plan provision.

If you contributed to a predecessor plan, have not withdrawn your employee contributions, and are rehired as an eligible employee after benefits commence, the portion of your benefit due to your employee contributions will continue to be paid to you during your reemployment.

If, after benefits commence, you are rehired in an ineligible classification, your retirement benefit payments will continue during your reemployment, provided you are always an ineligible employee. If your classification changes to an eligible employee, you will be subject to the rules discussed above.

You Become Disabled If you are a Plan participant and become disabled while employed by the Company after completing 10 years of vesting service, you will continue to earn benefits under the Current Benefit formula while disabled. You are disabled if you provide acceptable medical evidence that you are totally and permanently prevented from engaging in any substantial gainful employment because of a mental or physical condition. You are also disabled if you qualify for Social Security disability benefits.

Your compensation is assumed to equal your compensation in effect as of the date you became disabled. Your Benefit Service will include the time you are disabled until the earliest of: (i) the date you are no longer disabled, (ii) the date Plan benefits begin, (iii) your normal retirement date, (iv) the date of your death, or (v) the date the Plan terminates.

In no event will your disability benefit be less than your Predecessor Plan benefit determined as of December 31, 1996.

You Die Before Retirement If you are married and die before you start receiving your monthly benefit (whether or not you are an employee) and you are vested in your Plan benefit, your surviving spouse is entitled to a benefit payable for life.

The death benefit is based on the Plan benefit you had earned at the time of your death.

The amount of the benefit payable to your surviving spouse will be the beneficiary’s portion of the amount you would have received had you ended your employment the day before you died, survived to your early retirement date and elected the 50% Joint and Survivor Annuity option.

However, if your death occurs within 90 days of the date your pension payments are to commence and if you and your spouse had already elected an optional form of payment prior to your death that would provide your spouse with a death benefit of greater value than the survivor’s benefit payable under the 50% Joint and Survivor Annuity, the elected optional form of benefit will be paid to your surviving spouse.

The benefit is then adjusted to reflect the pension start date.

Monthly payments will not start without your surviving spouse’s consent. If you die after satisfying the early retirement requirements (age 55 and completion of 10 years of vesting service, or age 55 and 5 years of vesting service if you were a participant in the Retirement Plan for Employees of Reynolds Electrical & Engineering Co., Inc.

(REECo) on December 31, 1996, or for certain Wackenhut Services, Inc.

employees), payments can begin immediately. If you die after becoming vested in your Plan benefit but before satisfying the early retirement requirements, your surviving spouse can elect to begin receiving benefits beginning the first day of the month on or immediately following your early retirement date. Your spouse can elect to postpone benefits as late as December 31 of the year you would have reached age 70½.

Beneficiary Payments

If you are married and die before your pension payments start, your surviving spouse must give consent before monthly payments can begin.

If the value of your benefit is $1,000 or less, your spouse will receive a lump sum payment instead of monthly payments. If the value of the benefit is $1,000 or less, your spouse will automatically receive an immediate lump sum payment instead of the monthly payments.

If you contributed to a predecessor plan, your surviving spouse can elect to withdraw your employee contributions and interest, if any, as a single lump sum and postpone the monthly death benefits until a later date. This election is available to your surviving spouse at any time after your death and before the commencement date of the monthly survivor benefits. The monthly survivor benefit will be actuarially reduced to reflect this withdrawal.

If you are not married when you die, no death benefit will be payable. If you contributed to a predecessor plan, see ”Guaranteed Return of Employee Contributions” on page 18.

After Retirement Death benefits after you start receiving your monthly benefits will be paid only to the extent provided by the form of payment you elected (see pages 16 through 17).

HOW YOUR BENEFITS ARE PAID

Automatic Form of Payment Unless you elect one of the optional forms of payment described below, you will receive your retirement benefits in an automatic form of payment. The automatic form of payment you receive depends on your marital status when your payments are scheduled to begin:

Benefit Payment Options

There are several options for receiving your retirement benefit payments:

Automatic Form of Payment:

Single Life Annuity if you are single, or

50% Joint and Survivor if you are married

Optional Forms of Payment:

Single Life Annuity

Joint and Survivor Annuity

66-2/3% Survivor Annuity

10-Year Certain and Life Annuity

Temporary Annuity

Single Sum Payment of Employee Contributions

Unless you elect one of the optional forms of payment, you will receive your benefits in the Automatic Form of Payment.

If you are single, you will automatically receive benefits as a Single Life Annuity form of payment.

If you are married, you will automatically receive benefits as a 50% Joint and Survivor Annuity, with your spouse as your beneficiary.

Benefit of $1,000 or Less If the value of your vested benefit is $1,000 or less at the time you leave the Company, you may not leave your money in the Plan. The Plan will automatically pay your benefit in a single lump sum, minus applicable taxes. You also may request a rollover of your single lump sum into a traditional Individual Retirement Account (IRA) or another eligible employer plan. In this case, taxes would be deferred on the rollover until you receive payment. You must fill out a written request for a rollover to another plan within 60 days of separating from service; otherwise, the Plan will automatically pay you a cash single lump sum payment.

Benefit of More Than $1,000 but Less Than or Equal to $5,000 If the value of your vested benefit is more than $1,000 but less than or equal to $5,000 at the time you leave the Company, you may choose to receive a distribution or leave your benefit in the Plan. If you chose a distribution, the Plan will pay your benefit in a single lump sum, or, as described above, you may request a rollover to an IRA or other eligible employer plan.

If you decide to leave your benefit in the Plan at the time you separate from service, you may submit a written request to commence payment of your retirement benefit at a later date, or you may leave it in the Plan and receive a distribution at normal retirement age – age 65. If you do not request a distribution or a rollover, your benefit will remain in the Plan until you do so, or until you reach age 65. If you are married, your spouse must consent to this distribution and his or her signature must be notarized. Note that if you decide to leave your benefit in the Plan, the value of your benefit may increase to more than $5,000, in which case you will be entitled to only receive a monthly annuity from the Plan.

Benefit of More Than $5,000 If the value of your vested benefit is more than $5,000, you may have several options as to the timing and method of distribution of your Plan benefits.

If you are not eligible to receive your vested benefit when you separate from service, the benefit remains with the Plan and you may request to begin receiving it in the future - including past the normal retirement age of 65. However, the Internal

Revenue Service (IRS) requires that you begin receiving annual minimum required distributions when you reach age 70½.

Optional Forms of Payment The Plan provides these options:

Single Life Annuity Joint and Survivor Annuity (50%, 75% or 100% continuance) 66-2/3% Survivor Annuity 10-Year Certain and Life Annuity Temporary Annuity Single Sum Payment of Employee Contributions

If you retire before your normal retirement age, your benefit will be reduced to reflect your early retirement date (as described starting on page 7).

Single Life Annuity: This option provides you with a monthly benefit for your lifetime. The amount of the monthly benefit is equal to the amount of your monthly normal retirement benefit. When you die, no payments will be made to any survivors or beneficiaries.

Joint and Survivor Annuity: The Joint and Survivor Annuity options provide a reduced monthly benefit to you for your lifetime with the added feature that payments will continue to your beneficiary after your death. Your beneficiary will receive a monthly lifetime benefit equal to 50%, 75%, or 100% (you select the percentage) of the reduced monthly amount that you receive.

If you are receiving your benefit in the form of a Joint and Survivor Annuity and your beneficiary dies before you, your monthly retirement payment will remain the same and you cannot name a second beneficiary.

Because it is expected that your benefit will be payable over two lifetimes, the amount of the monthly benefit which would be payable to you during your lifetime is less than that under the Single Life Annuity option. Your monthly normal retirement benefit will be actuarially reduced, based on the ages of both you and your beneficiary at the time benefits commence.

If you are married and receive a 50% Joint and Survivor Annuity as an automatic form of payment and you later remarry (because of divorce or the death of your spouse) after your benefits have begun, your second spouse will not be covered under this form of payment.

66-2/3% Survivor Annuity: This option provides a reduced monthly benefit to you during the joint lifetimes of you and your beneficiary. Upon the death of either you or your beneficiary, monthly payments in the amount of 66-2/3% of such benefit will be continued to the survivor for the survivor’s lifetime.

10-Year Certain and Life Annuity: This option provides you with a reduced lifetime monthly benefit, with a guarantee of 120 payments. If you die after receiving the guaranteed 120 payments, no payments will be made to your beneficiary following your death. However, if you die before receiving your guaranteed 120 monthly payments, the remainder of the guaranteed monthly payments will be made to your beneficiary. If you die before the guaranteed payments have been paid and there is no designated beneficiary living, the value of the remaining payments will be paid to your surviving spouse, if he or she is living, or to your estate in a lump sum payment.

You can name a new beneficiary if your beneficiary dies before you.

The reduction to your monthly normal retirement benefit depends upon your age at retirement.

Temporary Annuity: The goal of this option is to provide substantially level monthly benefits before and after Social Security benefits are payable. This results in a larger Plan benefit amount payable before Social Security benefits begin and a smaller Plan benefit amount payable after Social Security benefits begin. Social Security benefits are payable at age 62. Consequently, this option is available only if Plan benefits begin before age 62. This option is an actuarial equivalent of your normal retirement benefit and no benefits are payable following your death.

For those former participants in the Retirement Plan for Employees of Reynolds Electrical & Engineering Co., Inc. (REECo), the Temporary Annuity can never be less than the temporary annuity provided by the REECo Plan based on REECo Plan benefits as of December 31, 1996.

Single Sum Payment of Employee Contributions: If you contributed to one of the predecessor plans, you may withdraw your employee after-tax contributions and interest in a single lump sum payment and receive a reduced benefit. The remainder of your Plan benefit will be payable in the automatic form unless you elect one of the other payment options.

Restrictions on Electing a Payment Option If you are married, you may elect a form of payment other than a 50% Joint and Survivor Annuity with your spouse as your beneficiary only if your spouse gives his or her written, notarized consent approving the election.

No consent is required if the Plan Administrator establishes that consent cannot be given because you have no spouse or your spouse cannot be located. If your spouse is legally incompetent to give consent, the legal guardian of your spouse (even if that is you) may give consent. If you and your spouse are legally separated under a court order, spousal consent is not required unless a Qualified Domestic Relations Order (QDRO) provides otherwise.

You may cancel a payment option at any time before you start receiving your monthly benefits. You may not cancel an option after your monthly benefits have started.

You can contact the Employee Benefits Office to discuss any questions when you apply for your benefits.

Beneficiaries If you are married and name someone other than your spouse as your beneficiary, your spouse must provide his or her written, notarized consent approving the election.

If you later change your beneficiary designation and again name a non-spouse beneficiary, your spouse must provide his or her written, notarized consent to this new designation.

If you elect a 10-year certain and life annuity and do not name a beneficiary, the Plan provides that any benefits payable at your death will be paid to your surviving spouse, or if there is no spouse, to your estate.

When You Elect an Option You must file a written application with the Employee Benefits Office before the Plan can begin benefit payments. The Employee Benefits Office will provide you with the application. Your election of an optional form of payment is effective only if it is made within 90 days (180 days effective January 1, 2007) before the date your benefits begin. Unless you elect otherwise, your benefits will commence no later than the 60th day after the close of the plan year in which the latest of the following events occurs:

Receiving Retirement Benefits

You must file a written application with the Employee Benefits Office before any retirement benefits will be paid.

If you do not elect commencement of benefits, you will be considered to have deferred benefit payments until you either reach age 65 or you otherwise notify the Employee Benefits Office.

You reach age 65, Your 10th anniversary of participation in the Plan, or You leave the Company.

If you fail to elect commencement of benefits, you will be considered to have deferred benefit payments until you either reach age 65 or you otherwise notify the Employee Benefits Office, whichever is the first to occur. If you wish to elect an optional form of payment, you should notify the Employee Benefits Office at least 90 days ahead of time.

Before you retire, you are entitled to receive a statement explaining the Plan’s automatic and optional forms of payment and the relative values of the different forms of payment. If you do not receive a statement, please request a copy from the Employee Benefits Office.

Application for Retirement Benefits You must file a written application with the Employee Benefits Office before any retirement benefits will be paid. In order for your first benefit check to arrive on your retirement date, you should contact the Employee Benefits Office about 3 months before you wish to retire. This will allow enough time for your application to be processed and for you to consider how you want your benefits to be paid.

However, if you have left the Company and are entitled to a pension, the Plan provides for the automatic payment of retirement benefits at your normal retirement date even if you do not apply for benefits, provided the Employee Benefits Office has your correct address. Therefore, it is important that you notify the Employee Benefits Office of any change in address or change in marital status. Your benefit will be paid in the automatic form of payment (see page 14). If you wish to elect an optional form of payment (see pages 16 and 17), your marital status has changed, or your have remarried since you terminated, you should file a written application with the Employee Benefits Office.

Guaranteed Return of Employee Contributions If you contributed to a predecessor plan and you have not withdrawn your employee contributions, you are guaranteed to receive Plan benefits equal to your contributions, increased by interest rates specified by the Internal Revenue Service (IRS). If the amount of Plan benefits paid is less than your contributions and interest, your surviving spouse (if living, otherwise your estate) will receive a lump sum payment equal to the difference of your contributions and interest and the amount of Plan benefits paid.

CIRCUMSTANCES THAT CAN AFFECT YOUR

BENEFITS

We have tried in this Summary Plan Description (SPD) to use easy-to-understand terms so you will know the amount of your retirement benefits and when your benefits are paid. There are some circumstances, however, in which you or your beneficiary may find that some benefits are less than you may have anticipated or are not available. This section of the SPD is designed to describe some of those circumstances.

1. If you fail to meet the eligibility requirements, you will not become a Plan participant.

2. Your annual benefit cannot exceed the limits established by the Internal Revenue Service (IRS).

3. If you leave the Company before becoming vested, you will not be eligible for a Plan benefit.

4. If you fail to keep the Plan Administrator informed of your current address and the name and current address of your beneficiary, this could result in the delay of receipt of your benefits.

5. If the Plan is terminated, you will not earn additional benefits after the termination date.

6. If a Qualified Domestic Relations Order (QDRO) requires the Plan to set aside a portion of your benefit for payment to your ex-spouse or children, you will have no rights to that portion of your Plan benefit.

7. The Plan may only consider compensation up to the limit set by the IRS. This maximum limit is adjusted periodically. In 2007, this limit is $225,000.

8. If you are not married, you die before you start receiving your monthly benefit and you have no employee contributions in the Plan, no benefit will be paid to anyone on your behalf.

9. The federal government may impose a 10% tax penalty – in addition to any income tax you owe – if you receive benefits before age 59½. Some states also have tax penalties. These penalties only apply to lump sum distributions, not monthly annuities.

HOW MUCH THE PLAN COSTS

The Company pays the full costs of providing benefits from the Plan. You do not pay anything.

The contributions made by the Company to the Plan are based on cost projections made by an enrolled actuary. An enrolled actuary is a professional who figures the rate at which money should be set aside to be available to pay future Plan benefits.

The enrolled actuary follows minimum funding rules and regulations specified by the Internal Revenue Service (IRS).

WHAT ELSE YOU SHOULD KNOW

Top-Heavy Provisions A plan is top-heavy if certain owners and executives of the Company have a disproportionate share of plan benefits that exceeds limits established by the Internal Revenue Service (IRS). It is unlikely that this Plan will become top-heavy.

If the Plan becomes top-heavy in the future, certain participants (as defined by the tax laws) who are not owners or executives of the Company could be entitled to additional Plan benefits. Also, while the Plan is top-heavy, the following vesting schedule applies:

Years of Vesting Service Vested Percentage Less than 2 years 0%

2 20% 3 100%

You will be notified by the Plan Administrator if the Plan ever becomes top-heavy.

Benefits May Not be Transferred to Others You may not borrow against your retirement benefits, nor may you pledge any part of them as security or collateral for a loan or otherwise transfer your rights. In addition, your benefit is generally protected from claims by your creditors while it is in the Plan.

However, the Plan Administrator will comply with a claim which requires payment of all or part of a participant’s benefit to another person pursuant to a Qualified Domestic Relations Order (QDRO).

Future of the Plan Amending the Plan

The Company reserves the right to amend, modify or terminate the Plan, in writing, at any time.

Unless otherwise permitted by law, no amendment can reduce benefits you have already earned.

The Company reserves the right to amend, modify or terminate the Plan, in writing, at any time. The Company has reserved the right to discontinue contributions or terminate the Plan for its employees. Unless otherwise permitted by law, no amendment can reduce benefits you have already earned. If the Plan is terminated, you will be 100% vested in your benefit earned as of the termination date. This is true even if you do not have the 5 years of vesting service required to be vested under the Plan.

Your pension benefits under this Plan are insured by the Pension Benefit Guaranty Corporation (PBGC), a federal insurance agency. If the Plan terminates (ends) without enough money to pay all benefits, the PBGC will step in to pay pension benefits. Most people receive all of the pension benefits they would have received under their plan, but some people may lose certain benefits.

The PBGC guarantee generally covers: (1) Normal and early retirement benefits; (2) disability benefits if you become disabled before the Plan terminates; and (3) certain benefits for your survivors.

The Pension Benefit Guaranty Corporation (PBGC) guarantee generally does not cover: (1) Benefits greater than the maximum guaranteed amount set by law for the year in which the Plan terminates; (2) some or all benefit increases and new benefits based on Plan provisions that have been in place for fewer than 5 years at the time the Plan terminates; (3) benefits that are not vested because you have not worked long enough for the company; (4) benefits for which you have not met all of the requirements at the time the Plan terminates; (5) certain early retirement payments (such as supplemental benefits that stop when you become eligible for Social Security) that result in an early retirement monthly benefit greater than your monthly benefit at the Plan’s normal retirement age; and (6) non-pension benefits, such as health insurance, life insurance, certain death benefits, vacation pay, and severance pay.

Pension Benefit Guaranty Corporation

For information about the PBGC, contact them at:

PBGC

1200 K Street, NW Washington, DC 20005-or at 800-400-7242 or online:

http://www.pbgc.gov

Even if all of your benefits are not guaranteed, you still may receive some of those benefits from the PBGC depending on how much money the plan has and how much the PBGC collects from employers.

For more information about the PBGC and the benefits it guarantees, ask your Plan Administrator or contact Technical Assistance Division – PBGC, 1200 K Street, NW, Washington, D.C., 20005-4026, or call (800) 400-7242. TTY/TDD users may call the federal relay service toll-free at (800) 877-8339 and ask to be connected to (202) 326- 4000. Additional information about the PBGC’s pension insurance program is available the PBGC’s website on the internet at http://www.pbgc.gov.

Plan Administrator The Plan Administrator has full discretionary authority to administer and interpret the Plan, including discretionary authority to determine eligibility for participation and for benefits under the Plan, to appoint investment managers, to correct errors and to construe ambiguous terms. Determinations by the Plan Administrator or its properly authorized delegate will be final and conclusive upon all persons.

Your ERISA Rights As a participant in the Plan, you are entitled to certain rights and protections under the Employee Retirement Income Security Act of 1974 (ERISA). ERISA provides that all Plan participants are entitled to:

Receive Information About the Plan and Your Benefits

Examine, without charge, at the Plan Administrator’s office and at other specified locations, such as worksites, all documents governing the Plan, including insurance contracts, and a copy of the latest annual report (Form 5500 Series) filed by the Plan with the Employee Benefits Security Administration, which is also available at the Public Disclosure Room of the Employee Benefits Security Administration.

Obtain, upon written request to the Plan Administrator, copies of documents governing the operation of the Plan, including insurance contracts, and copies of the latest annual report (Form 5500 series) and updated Summary Plan Description (SPD). The administrator may make a reasonable charge for the copies.

Receive a summary of the Plan’s annual financial report. The Plan Administrator is required by law to furnish each participant with a copy of this Summary Annual Report.

Obtain a statement telling you whether you have a right to receive a pension at normal retirement age…