{"id":40141,"date":"2015-09-17T11:25:58","date_gmt":"2015-09-17T16:25:58","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-legal\/contracts\/uncategorized\/non-employee-directors-1999-stock-plan-general-dynamics-corp.html"},"modified":"2015-09-17T11:25:58","modified_gmt":"2015-09-17T16:25:58","slug":"non-employee-directors-1999-stock-plan-general-dynamics-corp","status":"publish","type":"corporate_contracts","link":"https:\/\/corporate.findlaw.com\/contracts\/compensation\/non-employee-directors-1999-stock-plan-general-dynamics-corp.html","title":{"rendered":"Non-Employee Directors 1999 Stock Plan &#8211; General Dynamics Corp."},"content":{"rendered":"<pre><p align=\"center\"><b>GENERAL DYNAMICS CORPORATION<\/b>\n\n<\/p><p align=\"center\"><b>NON-EMPLOYEE DIRECTORS 1999 STOCK PLAN<\/b>\n\n<\/p><p>\n<\/p><\/pre>\n<table width=\"100%\" border=\"0\" cellpadding=\"0\" cellspacing=\"0\">\n<tr valign=\"top\">\n<td width=\"1%\" align=\"left\" nowrap>1.<\/td>\n<td width=\"3%\"> <\/td>\n<td width=\"96%\"><i>Purpose. <\/i>The purpose of the General Dynamics Corporation Non-Employee<br \/>\nDirectors 1999 Stock Plan (the \u0093Plan\u0094) is to provide General Dynamics<br \/>\nCorporation (the \u0093Company\u0094) with an effective means of attracting,<br \/>\nretaining, and motivating directors of the Company.<\/td>\n<\/tr>\n<tr>\n<td> <\/td>\n<\/tr>\n<tr valign=\"top\">\n<td width=\"1%\" align=\"left\" nowrap>2.<\/td>\n<td width=\"3%\"> <\/td>\n<td width=\"96%\"><i>Eligibility. <\/i>Any member of the Board of Directors of the Company (the<br \/>\n\u0093Board\u0094) who is not an employee of the Company (an \u0093Eligible Director\u0094) is<br \/>\neligible to participate in the Plan.<\/td>\n<\/tr>\n<tr>\n<td> <\/td>\n<\/tr>\n<tr valign=\"top\">\n<td width=\"1%\" align=\"left\" nowrap>3.<\/td>\n<td width=\"3%\"> <\/td>\n<td width=\"96%\"><i>Administration. <\/i>The Plan shall be administered by the Board. Except as<br \/>\notherwise expressly provided in the Plan, the Board shall have full power and<br \/>\nauthority to interpret and administer the Plan, to determine the Eligible<br \/>\nDirectors to receive awards and the amounts, types and terms of the awards, to<br \/>\nadopt, amend, and rescind rules and regulations, and to establish terms and<br \/>\nconditions, not inconsistent with the provisions of the Plan, for the<br \/>\nadministration and implementation of the Plan, provided, however, that the<br \/>\nBoard may not, after the date of any award, make any changes that would<br \/>\nadversely affect the rights of a recipient under such award without the consent<br \/>\nof the recipient. The determination of the Board on all matters shall be final<br \/>\nand conclusive and binding on the Company and all participants.<\/td>\n<\/tr>\n<tr>\n<td> <\/td>\n<\/tr>\n<tr valign=\"top\">\n<td width=\"1%\" align=\"left\" nowrap>4.<\/td>\n<td width=\"3%\"> <\/td>\n<td width=\"96%\"><i>Awards. <\/i>Awards may be made by the Board in such amounts as it shall<br \/>\ndetermine in cash, in the Company\u0092s common stock, par value $1.00 per<br \/>\nshare (\u0093Common Stock\u0094), in options to purchase Common Stock of the<br \/>\nCorporation (\u0093Stock Options\u0094), or in shares of Common Stock subject to<br \/>\ncertain restrictions (\u0093Restricted Stock\u0094), or any combination thereof.<br \/>\nFurther, an Eligible Director\u0092s annual retainer may also be paid under the<br \/>\nPlan in either cash or Common Stock or in a fifty percent (50%) and fifty<br \/>\npercent (50%) combination thereof, as the Eligible Director may elect.<br \/>\nThere shall be 40,000 shares of Common Stock available for issuance in<br \/>\nconnection with awards under the Plan. If any award under the Plan shall<br \/>\nexpire, terminate, or be canceled for any reason without having been<br \/>\nvested or exercised in full, the corresponding number of shares which were<br \/>\nreserved for issuance in connection therewith shall again be available for<br \/>\nthe purposes of the Plan. Shares available under the Plan may be<br \/>\nauthorized and unissued shares or may be treasury shares.<\/td>\n<\/tr>\n<tr>\n<td> <\/td>\n<\/tr>\n<tr valign=\"top\">\n<td width=\"1%\" align=\"left\" nowrap>5.<\/td>\n<td width=\"3%\"> <\/td>\n<td width=\"96%\"><i>Common Stock. <\/i>In the case of awards or payments of retainers in Common<br \/>\nStock, the number of shares shall be determined by dividing the amount of<br \/>\nthe award or retainer elected to be received in Common Stock by the average<br \/>\nof the highest and lowest quoted selling prices of the Company\u0092s Common<br \/>\nStock on the New York Stock Exchange on the date of the award or retainer.<br \/>\nThe average is referred to throughout this Plan as the \u0093fair market value.\u0094<\/td>\n<\/tr>\n<\/table>\n<p align=\"center\">Page: 1 of 6<\/p>\n<\/p>\n<hr noshade>\n<h5 align=\"left\" style=\"page-break-before:always\"> <\/h5>\n<\/p>\n<table width=\"100%\" border=\"0\" cellpadding=\"0\" cellspacing=\"0\">\n<tr valign=\"top\">\n<td width=\"1%\" align=\"left\" nowrap>6.<\/td>\n<td width=\"3%\"> <\/td>\n<td width=\"96%\"><i>Dividend Equivalents and Interest.<\/i><\/td>\n<\/tr>\n<\/table>\n<table width=\"100%\" border=\"0\" cellpadding=\"0\" cellspacing=\"0\">\n<tr valign=\"top\">\n<td width=\"4%\"> <\/td>\n<td width=\"1%\" align=\"left\" nowrap>a.<\/td>\n<td width=\"3%\"> <\/td>\n<td width=\"92%\"><i>Dividends. <\/i>If any award in Common Stock or Restricted Stock is<br \/>\nto be paid on a deferred basis, the recipient may be entitled, on<br \/>\nterms and conditions to be established by the Board, to receive a<br \/>\npayment of, or credit equivalent to, any dividend payable with respect<br \/>\nto the number of shares of Common Stock or Restricted Stock which, as<br \/>\nof the record date for the dividend, has been awarded or made payable<br \/>\nto the recipient but not delivered.<\/td>\n<\/tr>\n<tr>\n<td> <\/td>\n<\/tr>\n<tr valign=\"top\">\n<td width=\"4%\"> <\/td>\n<td width=\"1%\" align=\"left\" nowrap>b.<\/td>\n<td width=\"3%\"> <\/td>\n<td width=\"92%\"><i>Interest. <\/i>If any award in cash is to be paid on a deferred<br \/>\nbasis, the recipient may be entitled, on terms and conditions to be<br \/>\nestablished by the Board, to accrue interest on the unpaid amount.<\/td>\n<\/tr>\n<\/table>\n<table width=\"100%\" border=\"0\" cellpadding=\"0\" cellspacing=\"0\">\n<tr valign=\"top\">\n<td width=\"1%\" align=\"left\" nowrap>7.<\/td>\n<td width=\"3%\"> <\/td>\n<td width=\"96%\"><i>Restricted Stock Awards.<\/i><\/td>\n<\/tr>\n<\/table>\n<table width=\"100%\" border=\"0\" cellpadding=\"0\" cellspacing=\"0\">\n<tr valign=\"top\">\n<td width=\"4%\"> <\/td>\n<td width=\"1%\" align=\"left\" nowrap>a.<\/td>\n<td width=\"3%\"> <\/td>\n<td width=\"92%\"><i>General. <\/i>Restricted Stock represents awards made in Common Stock<br \/>\nin which the shares granted may not be sold, transferred, pledged,<br \/>\nassigned, or otherwise alienated or hypothecated except upon passage<br \/>\nof time, or upon satisfaction of other conditions, or both, in every<br \/>\ncase as provided by the Board. The recipient of an award of<br \/>\nRestricted Stock shall be entitled to vote the shares awarded and to<br \/>\nthe payment of dividends on the shares from the date the award of<br \/>\nshares is made; and, in addition, all Special Distributions (as<br \/>\ndefined in Section 9 hereof) thereon shall be credited to an account<br \/>\nsimilar to the Account described in Section 9. The recipient of an<br \/>\naward of Restricted Stock shall have a nonforfeitable interest in<br \/>\namounts credited to such account in proportion to the lapse of<br \/>\nrestrictions on the Restricted Stock to which such amounts relate.<br \/>\nFor example, when restrictions lapse on fifty percent (50%) of the<br \/>\nRestricted Stock granted in an award, the holder of such Restricted<br \/>\nStock shall have a nonforfeitable interest in fifty percent (50%) of<br \/>\nthe amount credited to his account which is attributable to such<br \/>\nRestricted Stock. The holder of Restricted Stock shall receive a<br \/>\npayment in cash of any amount in his account as soon as practicable<br \/>\nafter the lapse of restrictions relating thereto.<\/td>\n<\/tr>\n<tr>\n<td> <\/td>\n<\/tr>\n<tr valign=\"top\">\n<td width=\"4%\"> <\/td>\n<td width=\"1%\" align=\"left\" nowrap>b.<\/td>\n<td width=\"3%\"> <\/td>\n<td width=\"92%\"><i>Restricted Stock Performance Formula. <\/i>Awards of Restricted Stock<br \/>\nmay be granted pursuant to the formula described in this Section,<br \/>\nreferred to herein as the \u0093Restricted Stock Performance Formula.\u0094 The<br \/>\nBoard shall make an initial grant of shares of Restricted Stock (the<br \/>\n\u0093Initial Grant\u0094). At the end of a specified performance period<br \/>\n(determined by the Board), the number of shares in the Initial Grant<br \/>\nshall be increased or decreased, based on the increase or decrease in<br \/>\nthe fair market value of a share of Common Stock during the<br \/>\nperformance period, by a number of shares equal to (a) the excess of<br \/>\nthe fair market value of a share of Common Stock on the last day of<br \/>\nthe performance period over the fair market value of a share of Common<br \/>\nStock on the grant date multiplied by (b) the number of shares of<br \/>\nRestricted Stock subject to the Initial Grant and divided by (c) the<br \/>\nfair market value of a share of Common Stock on the last day of the<br \/>\nperformance period. The number of shares of Common Stock so<br \/>\ndetermined is added to (in the case of a higher fair market value) or<br \/>\nsubtracted from (in the case of a lower fair market value) the number<br \/>\nof shares of Restricted Stock to be earned at that time. Once the<br \/>\nnumber of shares of Restricted Stock has been adjusted, restrictions<br \/>\nwill continue to be imposed for a period of time determined by the<br \/>\nBoard.<\/td>\n<\/tr>\n<\/table>\n<table width=\"100%\" border=\"0\" cellpadding=\"0\" cellspacing=\"0\">\n<tr valign=\"top\">\n<td width=\"1%\" align=\"left\" nowrap>8.<\/td>\n<td width=\"3%\"> <\/td>\n<td width=\"96%\"><i>Stock Option Awards.<\/i><\/td>\n<\/tr>\n<\/table>\n<table width=\"100%\" border=\"0\" cellpadding=\"0\" cellspacing=\"0\">\n<tr valign=\"top\">\n<td width=\"4%\"> <\/td>\n<td width=\"1%\" align=\"left\" nowrap>a.<\/td>\n<td width=\"3%\"> <\/td>\n<td width=\"92%\"><i>Type of Options<\/i>. Options shall be in the form of options which<br \/>\ndo not qualify as incentive stock options under Section 422 of the<br \/>\nInternal Revenue Code of 1986, as amended.<\/td>\n<\/tr>\n<\/table>\n<p align=\"center\">Page: 2 of 6<\/p>\n<\/p>\n<hr noshade>\n<h5 align=\"left\" style=\"page-break-before:always\"> <\/h5>\n<\/p>\n<table width=\"100%\" border=\"0\" cellpadding=\"0\" cellspacing=\"0\">\n<tr valign=\"top\">\n<td width=\"4%\"> <\/td>\n<td width=\"1%\" align=\"left\" nowrap>b.<\/td>\n<td width=\"3%\"> <\/td>\n<td width=\"92%\"><i>Purchase Price. <\/i>The purchase price of the Common Stock under<br \/>\neach option shall be determined by the Board, but shall not be less<br \/>\nthan 100 percent of the fair market value of the Common Stock on the<br \/>\ndate of the award of the option.<\/td>\n<\/tr>\n<tr>\n<td> <\/td>\n<\/tr>\n<tr valign=\"top\">\n<td width=\"4%\"> <\/td>\n<td width=\"1%\" align=\"left\" nowrap>c.<\/td>\n<td width=\"3%\"> <\/td>\n<td width=\"92%\"><i>Terms and Conditions<\/i>. The Board shall establish (i) the term of<br \/>\neach option, (ii) the terms and conditions upon which and the times<br \/>\nwhen each option shall be exercised, and (iii) the terms and<br \/>\nconditions under which options may be exercised after termination as<br \/>\nan Eligible Director for any reason for periods not to exceed three<br \/>\nyears after such termination.<\/td>\n<\/tr>\n<tr>\n<td> <\/td>\n<\/tr>\n<tr valign=\"top\">\n<td width=\"4%\"> <\/td>\n<td width=\"1%\" align=\"left\" nowrap>d.<\/td>\n<td width=\"3%\"> <\/td>\n<td width=\"92%\"><i>Purchase by Cash or Stock<\/i>. The purchase price of shares<br \/>\npurchased upon the exercise of any stock option shall be paid (i) in<br \/>\nfull in cash, or (ii) in whole or in part (in combination with cash)<br \/>\nin full shares of Common Stock owned by the optionee and valued at<br \/>\nfair market value on the date of exercise, all pursuant to procedures<br \/>\napproved by the Board.<\/td>\n<\/tr>\n<tr>\n<td> <\/td>\n<\/tr>\n<tr valign=\"top\">\n<td width=\"4%\"> <\/td>\n<td width=\"1%\" align=\"left\" nowrap>e.<\/td>\n<td width=\"3%\"> <\/td>\n<td width=\"92%\"><i>Transferability<\/i>. Options shall not be transferable other than by<br \/>\nwill or pursuant to the laws of descent and distribution. During the<br \/>\nlifetime of the person to whom an option has been awarded, it may be<br \/>\nexercisable only by such person or one acting in his stead or in a<br \/>\nrepresentative capacity. Upon or after the death of the person to<br \/>\nwhom an option is awarded, an option may be exercised by the<br \/>\noptionee\u0092s legatee or legatees under his last will, or by the option<br \/>\nholder\u0092s personal representative or distributee\u0092s executive,<br \/>\nadministrator, or personal representative or designee in accordance<br \/>\nwith the terms of the option.<\/td>\n<\/tr>\n<\/table>\n<table width=\"100%\" border=\"0\" cellpadding=\"0\" cellspacing=\"0\">\n<tr valign=\"top\">\n<td width=\"1%\" align=\"left\" nowrap>9.<\/td>\n<td width=\"3%\"> <\/td>\n<td width=\"96%\"><i>Adjustments for Special Distributions. <\/i>The Board shall have the<br \/>\nauthority to change all Stock Options granted under this Plan to adjust<br \/>\nequitably the purchase price thereof and the number and kind of shares or<br \/>\nother property subject thereto to reflect a special distribution to<br \/>\nshareholders or other extraordinary corporate action involving<br \/>\ndistributions or payments to shareholders (collectively referred to as<br \/>\n\u0093Special Distributions\u0094). In the event of any Special Distribution, the<br \/>\nBoard may cause to be created a Special Distribution account (the<br \/>\n\u0093Account\u0094) in the name of the individual to whom Stock Options have been<br \/>\ngranted hereunder (sometimes herein referred to as a \u0093Grantee\u0094) to which<br \/>\nshall be credited an amount determined by the Board, or, in the case of<br \/>\nnon-cash Special Distributions, make appropriate comparable adjustments<br \/>\nfor, or payments to or for the benefit of, the Grantee.<\/td>\n<\/tr>\n<tr>\n<td> <\/td>\n<\/tr>\n<tr valign=\"top\">\n<td width=\"1%\" align=\"left\" nowrap> <\/td>\n<td width=\"3%\"> <\/td>\n<td width=\"96%\">Amounts credited to the Account in accordance with the preceding rules<br \/>\nshall be credited with interest, accrued monthly, at an annual rate equal<br \/>\nto the higher of Moody\u0092s Corporate Bond Yield Average or the prime rate in<br \/>\neffect from time to time, and such interest shall be credited in accordance<br \/>\nwith rules to be established by the Board. Notwithstanding the foregoing,<br \/>\nat no time shall the Board permit the amount credited to the Grantee\u0092s<br \/>\nAccount to exceed 90 percent of the purchase price of the Grantee\u0092s<br \/>\noutstanding Stock Options to which such amount relates. To the extent that<br \/>\nany credit would cause the Account to exceed that limitation, such excess<br \/>\nshall be distributed to the Grantee in cash.<\/td>\n<\/tr>\n<tr>\n<td> <\/td>\n<\/tr>\n<tr valign=\"top\">\n<td width=\"1%\" align=\"left\" nowrap> <\/td>\n<td width=\"3%\"> <\/td>\n<td width=\"96%\">Amounts credited to the Grantee\u0092s Account shall be paid to the Grantee or,<br \/>\nif the Grantee is deceased, his or her beneficiary at the time that the<br \/>\noptions to which it relates are exercised or expire, whichever occurs<br \/>\nfirst.<\/td>\n<\/tr>\n<\/table>\n<p align=\"center\">Page: 3 of 6<\/p>\n<\/p>\n<hr noshade>\n<h5 align=\"left\" style=\"page-break-before:always\"> <\/h5>\n<\/p>\n<table width=\"100%\" border=\"0\" cellpadding=\"0\" cellspacing=\"0\">\n<tr valign=\"top\">\n<td width=\"1%\" align=\"left\" nowrap> <\/td>\n<td width=\"3%\"> <\/td>\n<td width=\"96%\">The Account shall for all purposes be deemed to be an unfunded promise to<br \/>\npay money in the future in certain specified circumstances. As to amounts<br \/>\ncredited to the Account, a Grantee shall have no rights greater than the<br \/>\nrights of a general unsecured creditor of the Company, and amounts credited<br \/>\nto the Grantee\u0092s Account shall not be assignable or transferable other than<br \/>\nby will or the laws of descent and distribution, and such amounts shall not<br \/>\nbe subject to the claims of the Grantee\u0092s creditors.<\/td>\n<\/tr>\n<tr>\n<td> <\/td>\n<\/tr>\n<tr valign=\"top\">\n<td width=\"1%\" align=\"left\" nowrap>10.<\/td>\n<td width=\"3%\"> <\/td>\n<td width=\"96%\"><i>Adjustments and Reorganizations. <\/i>The Board may make such adjustments to<br \/>\nawards granted under the Plan (including the terms, exercise price, and<br \/>\notherwise) as it deems appropriate in the event of changes that impact the<br \/>\nCompany, the Company\u0092s share price, or share status.<\/td>\n<\/tr>\n<tr>\n<td> <\/td>\n<\/tr>\n<tr valign=\"top\">\n<td width=\"1%\" align=\"left\" nowrap> <\/td>\n<td width=\"3%\"> <\/td>\n<td width=\"96%\">In the event of any merger, reorganization, consolidation, change of<br \/>\ncontrol, recapitalization, separation, liquidation, stock dividend, stock<br \/>\nsplit, extraordinary dividend, spin-off, split-up, rights offering, share<br \/>\ncombination, or other change in the corporate structure of the Company<br \/>\naffecting the Common Stock, the number and kind of shares that may be<br \/>\ndelivered under the Plan shall be subject to such equitable adjustment as<br \/>\nthe Board may deem appropriate. Except as otherwise provided by the Board,<br \/>\nall authorized shares, share limitations, and awards under the Plan shall<br \/>\nbe proportionately adjusted to account for any increase or decrease in the<br \/>\nnumber of issued shares of Common Stock resulting from any stock split,<br \/>\nstock dividend, reverse stock split, or any similar reorganization or<br \/>\nevent. Notwithstanding anything in this Plan to the contrary, all awards<br \/>\noutstanding hereunder shall become fully vested upon the occurrence of a<br \/>\nchange in control.<\/td>\n<\/tr>\n<tr>\n<td> <\/td>\n<\/tr>\n<tr valign=\"top\">\n<td width=\"1%\" align=\"left\" nowrap> <\/td>\n<td width=\"3%\"> <\/td>\n<td width=\"96%\">In the preceding paragraph, \u0093change of control\u0094 means any of the following<br \/>\nevents:<\/td>\n<\/tr>\n<\/table>\n<table width=\"100%\" border=\"0\" cellpadding=\"0\" cellspacing=\"0\">\n<tr valign=\"top\">\n<td width=\"4%\"> <\/td>\n<td width=\"1%\" align=\"left\" nowrap>a.<\/td>\n<td width=\"3%\"> <\/td>\n<td width=\"92%\">An acquisition (other than directly from the Company) of any voting<br \/>\nsecurities of the Company by any Person (as used in Section 13(d) or 14(d) of<br \/>\nthe Securities Exchange Act of 1934, as amended (the \u0093Exchange Act\u0094), and<br \/>\nincluding any \u0093group\u0094 as such term is used in such sections) who immediately<br \/>\nafter such acquisition is the Beneficial Owner (as used in Rule 13d-3<br \/>\npromulgated under the Exchange Act) of 40 percent or more of the combined<br \/>\nvoting power of the Company\u0092s then outstanding voting securities; provided<br \/>\nthat, in determining whether a change of control has occurred, voting<br \/>\nsecurities which are acquired by (i) an employee benefit plan (or a trust<br \/>\nforming a part thereof) maintained by the Company or any subsidiary of the<br \/>\nCompany, (ii) the Company or any subsidiary of the Company, (iii) any Person<br \/>\nthat, pursuant to Rule 13d-1 promulgated under the Exchange Act, is permitted<br \/>\nto, and actually does, report its beneficial ownership of voting securities of<br \/>\nthe Company on Schedule 13G (or any successor Schedule) (a \u009313G Filer\u0094)<br \/>\nprovided that, if any 13G Filer subsequently becomes required to or does<br \/>\nreport its Beneficial Ownership of voting securities of the Company on Schedule<br \/>\n13D (or any successor Schedule) then such Person shall be deemed to have first<br \/>\nacquired, on the first date on which such Person becomes required to or does so<br \/>\nfile, Beneficial Ownership of all voting securities of the Company Beneficially<br \/>\nOwned by it on such date, or (iv) any person in connection with a Non-Control<br \/>\nTransaction (as hereinafter defined), will not constitute an acquisition which<br \/>\nresults in a change of control<\/td>\n<\/tr>\n<tr>\n<td> <\/td>\n<\/tr>\n<tr valign=\"top\">\n<td width=\"4%\"> <\/td>\n<td width=\"1%\" align=\"left\" nowrap>b.<\/td>\n<td width=\"3%\"> <\/td>\n<td width=\"92%\">Consummation of:<\/td>\n<\/tr>\n<\/table>\n<table width=\"100%\" border=\"0\" cellpadding=\"0\" cellspacing=\"0\">\n<tr valign=\"top\">\n<td width=\"8%\"> <\/td>\n<td width=\"1%\" align=\"left\" nowrap>(i)<\/td>\n<td width=\"3%\"> <\/td>\n<td width=\"88%\">a merger, consolidation, or reorganization involving the<br \/>\nCompany or any direct or indirect subsidiary of the Company,<br \/>\nunless:<\/td>\n<\/tr>\n<\/table>\n<p align=\"center\">Page: 4 of 6<\/p>\n<\/p>\n<hr noshade>\n<h5 align=\"left\" style=\"page-break-before:always\"> <\/h5>\n<\/p>\n<table width=\"100%\" border=\"0\" cellpadding=\"0\" cellspacing=\"0\">\n<tr valign=\"top\">\n<td width=\"12%\"> <\/td>\n<td width=\"1%\" align=\"left\" nowrap>(A)<\/td>\n<td width=\"3%\"> <\/td>\n<td width=\"84%\">the stockholders of the Company<br \/>\nimmediately before such merger, consolidation, or<br \/>\nreorganization will own, directly or indirectly,<br \/>\nimmediately following such merger, consolidation, or<br \/>\nreorganization, at least 50 percent of the combined<br \/>\nvoting power of the outstanding voting securities of the<br \/>\ncorporation resulting from such merger, consolidation, or<br \/>\nreorganization (the \u0093Surviving Company\u0094) or any parent<br \/>\nthereof in substantially the same proportion as their<br \/>\nownership of the voting securities of the Company<br \/>\nimmediately before such merger, consolidation, or<br \/>\nreorganization; and<\/td>\n<\/tr>\n<tr>\n<td> <\/td>\n<\/tr>\n<tr valign=\"top\">\n<td width=\"12%\"> <\/td>\n<td width=\"1%\" align=\"left\" nowrap>(B)<\/td>\n<td width=\"3%\"> <\/td>\n<td width=\"84%\">the individuals who were members of the<br \/>\nBoard immediately prior to the execution of the agreement<br \/>\nproviding for such merger, consolidation, or<br \/>\nreorganization constitute a majority of the members of<br \/>\nthe Board of Directors of the Surviving Company or any<br \/>\nparent thereof; and<\/td>\n<\/tr>\n<tr>\n<td> <\/td>\n<\/tr>\n<tr valign=\"top\">\n<td width=\"12%\"> <\/td>\n<td width=\"1%\" align=\"left\" nowrap>(C)<\/td>\n<td width=\"3%\"> <\/td>\n<td width=\"84%\">no person (other than the Company, any<br \/>\nsubsidiary of the Company, any employee benefit plan (or<br \/>\nany trust forming a part thereof) maintained by the<br \/>\nCompany, any Schedule 13G Filer, the Surviving Company,<br \/>\nany subsidiary or parent of the Surviving Company, or any<br \/>\nperson who, immediately prior to such merger,<br \/>\nconsolidation, or reorganization, was the Beneficial<br \/>\nOwner of 40 percent or more of the then outstanding<br \/>\nvoting securities of the Company) is the Beneficial Owner<br \/>\nof 40 percent or more of the combined voting power of the<br \/>\nSurviving Company\u0092s then outstanding voting securities;<\/td>\n<\/tr>\n<tr>\n<td> <\/td>\n<\/tr>\n<tr valign=\"top\">\n<td width=\"3%\"> <\/td>\n<td width=\"1%\" align=\"left\" nowrap>(D)<\/td>\n<td width=\"3%\"> <\/td>\n<td width=\"93%\">a transaction described in clauses (A)<br \/>\nthrough (C) above is referred to herein as a \u0093Non-Control<br \/>\nTransaction;\u0094<\/td>\n<\/tr>\n<\/table>\n<table width=\"100%\" border=\"0\" cellpadding=\"0\" cellspacing=\"0\">\n<tr valign=\"top\">\n<td width=\"8%\"> <\/td>\n<td width=\"1%\" align=\"left\" nowrap>(ii)<\/td>\n<td width=\"3%\"> <\/td>\n<td width=\"88%\">the complete liquidation or dissolution of the Company;<br \/>\nor<\/td>\n<\/tr>\n<tr>\n<td> <\/td>\n<\/tr>\n<tr valign=\"top\">\n<td width=\"3%\"> <\/td>\n<td width=\"1%\" align=\"left\" nowrap>(iii)<\/td>\n<td width=\"3%\"> <\/td>\n<td width=\"93%\">a sale or other disposition of all or substantially all<br \/>\nof the assets of the Company (other than a sale or other<br \/>\ndisposition to an entity (A) of which at least 50 percent of the<br \/>\ncombined voting power of the outstanding voting securities are<br \/>\nowned, directly or indirectly, by stockholders of the Company in<br \/>\nsubstantially the same proportion as their ownership of the voting<br \/>\nsecurities of the Company, (B) a majority of whose board of<br \/>\ndirectors is comprised of individuals who were members of the<br \/>\nBoard immediately prior to the execution of the agreement<br \/>\nproviding for such sale or other disposition and (C) of which no<br \/>\nPerson (other than the Company, any Subsidiary of the Company, any<br \/>\nemployee benefit plan (or any trust forming a part thereof)<br \/>\nmaintained by the Company, any Schedule 13G Filer, the Surviving<br \/>\nCorporation, any Subsidiary or parent of the Surviving<br \/>\nCorporation, or any Person who, immediately prior to such merger,<br \/>\nconsolidation or reorganization, was the Beneficial Owner of 40<br \/>\npercent or more of the then outstanding voting securities of the<br \/>\nCompany) has Beneficial Ownership of 40 percent or more of the<br \/>\ncombined voting power of the entity\u0092s outstanding voting<br \/>\nsecurities.<\/td>\n<\/tr>\n<\/table>\n<table width=\"100%\" border=\"0\" cellpadding=\"0\" cellspacing=\"0\">\n<tr valign=\"top\">\n<td width=\"4%\"> <\/td>\n<td width=\"1%\" align=\"left\" nowrap>c.<\/td>\n<td width=\"3%\"> <\/td>\n<td width=\"92%\">Individuals who, as of the date hereof, constitute the Board (the<br \/>\n\u0093Incumbent Board\u0094), cease for any reason to constitute at least a<br \/>\nmajority of the Board; provided, however, that any<br \/>\nindividual becoming a director subsequent to the effective date of the<br \/>\nPlan whose election, or nomination for election by Company<br \/>\nstockholders, was approved by a vote of two-thirds of<\/td>\n<\/tr>\n<\/table>\n<p align=\"center\">Page: 5 of 6<\/p>\n<\/p>\n<hr noshade>\n<h5 align=\"left\" style=\"page-break-before:always\"> <\/h5>\n<\/p>\n<table width=\"100%\" border=\"0\" cellpadding=\"0\" cellspacing=\"0\">\n<tr valign=\"top\">\n<td width=\"4%\"> <\/td>\n<td width=\"1%\" align=\"left\" nowrap> <\/td>\n<td width=\"3%\"> <\/td>\n<td width=\"92%\">the directors then comprising the Incumbent Board shall be considered<br \/>\nas though such individual were a member of the Incumbent Board, but<br \/>\nexcluding, for this purpose, any such individual whose initial<br \/>\nassumption of office occurs as a result of either an actual or<br \/>\nthreatened election contest (including, but not limited to, a consent<br \/>\nsolicitation).<\/td>\n<\/tr>\n<tr>\n<td> <\/td>\n<\/tr>\n<tr valign=\"top\">\n<td width=\"4%\"> <\/td>\n<td width=\"1%\" align=\"left\" nowrap>d.<\/td>\n<td width=\"3%\"> <\/td>\n<td width=\"92%\">Notwithstanding the foregoing, a change of control will not be<br \/>\ndeemed to occur solely because any person (a \u0093Subject Person\u0094)<br \/>\nacquires beneficial ownership of more than the permitted amount of the<br \/>\noutstanding voting securities of the Company as a result of the<br \/>\nacquisition of voting securities by the Company which, by reducing the<br \/>\nnumber of voting securities outstanding, increases the proportional<br \/>\nnumber of shares beneficially owned by the Subject Person, provided<br \/>\nthat if a change of control would occur (but for the operation of this<br \/>\nsentence) as a result of the acquisition of voting securities by the<br \/>\nCompany, and after such share acquisition by the Company, the Subject<br \/>\nPerson becomes the beneficial owner of any additional voting<br \/>\nsecurities which increases the percentage of the then outstanding<br \/>\nvoting securities beneficially owned by the Subject Person, then a<br \/>\nchange of control will be deemed to have occurred.<\/td>\n<\/tr>\n<\/table>\n<table width=\"100%\" border=\"0\" cellpadding=\"0\" cellspacing=\"0\">\n<tr valign=\"top\">\n<td width=\"1%\" align=\"left\" nowrap>11.<\/td>\n<td width=\"3%\"> <\/td>\n<td width=\"96%\"><i>Tax Withholding. <\/i>In the event that federal, state or local tax laws<br \/>\nprovide withholding requirements that apply to Eligible Directors, the<br \/>\nCompany shall withhold amounts paid under the Plan as required by any such<br \/>\nlaw.<\/td>\n<\/tr>\n<tr>\n<td> <\/td>\n<\/tr>\n<tr valign=\"top\">\n<td width=\"1%\" align=\"left\" nowrap>12.<\/td>\n<td width=\"3%\"> <\/td>\n<td width=\"96%\"><i>Expenses. <\/i>The expenses of administering the Plan shall be borne by the<br \/>\nCompany.<\/td>\n<\/tr>\n<tr>\n<td> <\/td>\n<\/tr>\n<tr valign=\"top\">\n<td width=\"1%\" align=\"left\" nowrap>13.<\/td>\n<td width=\"3%\"> <\/td>\n<td width=\"96%\"><i>Amendments. <\/i>The Board shall have complete power and authority to amend<br \/>\nthe Plan, provided that the Board shall not amend the Plan in any manner<br \/>\nthat requires shareholder approval under applicable law without such<br \/>\napproval No amendment to the Plan may, without the consent of the<br \/>\nindividual to whom the award shall theretofore have been awarded,<br \/>\nadversely affect the rights of an individual under the award.<\/td>\n<\/tr>\n<tr>\n<td> <\/td>\n<\/tr>\n<tr valign=\"top\">\n<td width=\"1%\" align=\"left\" nowrap>14.<\/td>\n<td width=\"3%\"> <\/td>\n<td width=\"96%\"><i>Effective Date of the Plan. <\/i>The Plan shall become effective on December<br \/>\n1, 1999, the date of its adoption by the Board.<\/td>\n<\/tr>\n<tr>\n<td> <\/td>\n<\/tr>\n<tr valign=\"top\">\n<td width=\"1%\" align=\"left\" nowrap>15.<\/td>\n<td width=\"3%\"> <\/td>\n<td width=\"96%\"><i>Termination. <\/i>The Board may terminate the Plan or any part thereof at any<br \/>\ntime, provided that no termination may, without the consent of the<br \/>\nindividual to whom any award shall theretofore have been made, adversely<br \/>\naffect the rights of an individual under the award.<\/td>\n<\/tr>\n<tr>\n<td> <\/td>\n<\/tr>\n<tr valign=\"top\">\n<td width=\"1%\" align=\"left\" nowrap>16.<\/td>\n<td width=\"3%\"> <\/td>\n<td width=\"96%\"><i>Other Actions. <\/i>Nothing contained in the Plan shall be deemed to preclude<br \/>\nother compensation plans which may be in effect from time to time or be<br \/>\nconstrued to limit the authority of the Company to exercise its corporate<br \/>\nrights and powers, including, but not by way of limitation, the right of the<br \/>\nCompany (a) to award options for proper corporate purposes otherwise than under<br \/>\nthe Plan to an employee or other person, firm, corporation, or association, or<br \/>\n(b) to award options to, or assume the option of, any person in connection with<br \/>\nthe acquisition, by purchase, lease, merger, consolidation, or otherwise, of<br \/>\nthe business and assets (in whole or in part) of any person, firm, corporation,<br \/>\nor association.<\/td>\n<\/tr>\n<\/table>\n<p align=\"center\">Page: 6 of 6<\/p>\n","protected":false},"template":"","meta":{"_acf_changed":false,"_stopmodifiedupdate":true,"_modified_date":"","_cloudinary_featured_overwrite":false},"corporate_contracts_companies":[7614],"corporate_contracts_industries":[9475],"corporate_contracts_types":[9539,9543],"class_list":["post-40141","corporate_contracts","type-corporate_contracts","status-publish","hentry","corporate_contracts_companies-general-dynamics-corp","corporate_contracts_industries-aerospace__ships","corporate_contracts_types-compensation","corporate_contracts_types-compensation__dsp"],"acf":[],"_links":{"self":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts\/40141","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts"}],"about":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/types\/corporate_contracts"}],"wp:attachment":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/media?parent=40141"}],"wp:term":[{"taxonomy":"corporate_contracts_companies","embeddable":true,"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts_companies?post=40141"},{"taxonomy":"corporate_contracts_industries","embeddable":true,"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts_industries?post=40141"},{"taxonomy":"corporate_contracts_types","embeddable":true,"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts_types?post=40141"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}