Skip to main content
Find a Lawyer

Employment Agreement – General Dynamics Corp. and Kenneth C. Dahlberg


W.P. Wylie
Vice President
Human Resources and Administration

February 13, 2001

Mr. Kenneth C. Dahlberg:

Dear Mr. Dahlberg

On behalf of General Dynamics Corporation, we are pleased to extend an offer to
you for the position of Executive Vice President — Information Systems and Technology. In
this position you will be an officer of the Corporation and will report to
Nicholas D. Chabraja, Chairman and Chief Executive Officer. Please understand
that your election to officer status is subject to approval by the Board of
Directors. Your starting salary will be paid bi-weekly at a rate equivalent to
$450,000 annually.

You will be eligible to participate in the Corporation’s Incentive Compensation
and Long-Term Incentive Programs. Annual awards for Incentive Compensation are
dependent upon your performance as well as the corporation’s performance. The
Long-Term Incentive Program (LTIP) provides annual awards of stock options and
performance-restricted stock. The present value of your long-term award will be
approximately $1,100,000. Part of this award is in the form of options and part
in the form of performance restricted stock. Please note that all long-term
equity awards are subject to approval by the Compensation Committee of the
Board of Directors. The value of your total direct compensation (salary, bonus,
and long-term equity) is about $2,000,000. Tommy Augustsson (703-876-3473) will
discuss the details of this program at your convenience.

In addition, you will be granted restricted shares of General Dynamics stock
which will serve to offset the forfeiture of your non-vested Raytheon stock
options. The grant value will be the average of the high and low on your first
day of work and restrictions will lapse according to the original vesting
schedule. Also, you will be granted restricted shares of General Dynamics stock
to offset forfeitures of Raytheon shares. These shares will have a two year
restriction period.

Using the February 12, 2001 closing prices of Raytheon (RTNb – $33.30) and
General Dynamics (GD – $66.41) as an illustration, the resulting awards would be
a grant of 40,293 shares of restricted stock. (See Enclosure for details of the
calculations of this example.)

3190 Fairview Park Drive
Falls Church, VA 22042-4523
Tel 703 876 3415
Fax 703 876 3550
pwylie@generaldynamics.com

General Dynamics Private Information


Page 2
February 13, 2001

In the event you are involuntarily terminated, other than for cause,
during the first three years of your employment, your salary and benefits
would continue through that period.

This offer of employment is contingent upon filling out the application
form previously transmitted to you as well as successful completion of a
pre-employment drug screening.

Also, a presumptive condition for employment is that your bonus for
performance year 2000 is paid by your current employer and that the
non-vested options and restricted shares indeed are forfeited.

As a corporate officer, you will be offered the Corporate Office benefits
programs (i.e., health insurance, disability insurance, etc.). Henry
Eickelberg (703-876-3409) and Bob Stewart (703-876-3408) will enroll you
in these programs upon your first day of work. The perquisite program for
corporate officers has previously been transmitted to you. If you have
any questions, please call me.

Please acknowledge your acceptance or rejection of this offer by
completing the Acceptance/Rejection enclosure and returning it to me by 2
March 2001. If you accept the offer, please complete and return the
application form also.

We at General Dynamics are looking forward to a positive response from
you.

Sincerely,

/s/ T.R. Augustsson

for W.P. Wylie

Enclosures

Was this helpful?

Copied to clipboard