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HII Avondale Industries, Inc. Pension Plan for Shipyard EmployeesSummary Plan Description2014Important Pension ConceptsThe following basic pension plan concepts are necessary to understand the Plan’s benefit.Employment YearEmployment Year is used in determining a year of service under the Plan. For service priorto January 1, 2008, your Employment Year is the 12-consecutive-month period ofemployment starting on the date you first performed service (typically, your hire date).If you are rehired, your Employment Year for the Plan is reset to the rehire date if: You are not rehired within the same Employment Year in which you terminateemployment, and You experience a one-year break in service during the Employment Year prior to theEmployment Year in which you are rehired.Effective January 1, 2008, a year of service will be determined based on a calendar year ofparticipation rather than the Employment Year. See “Years of Vesting and ParticipationService” for details.Hours of ServiceYou earn an hour of service for each hour for which you are paid (or are entitled to be paid)by the Company, while actively at work and during certain periods away from work, includingvacation, holiday, illness, disability, layoff, jury duty, or a leave of absence (note that forperiods when you are away from work, no more than 501 hours will be counted). You willreceive credit for eight hours a day for each day you are on a qualifying military leave,provided that you return to active employment within five years of the beginning of your leaveand within 90 days of an honorable discharge, or if you die while on a qualifying militaryleave.If you are a leased or contract employee, you will receive credit toward your hours of servicefor each hour for which you are paid (or are entitled to be paid).Years of Vesting and Participation ServiceVesting means you have earned a non-forfeitable right to your Plan benefit. Vesting serviceis used to determine if you have a right to a vested or deferred vested benefit (see “DeferredVested Benefits”). Generally, your vesting service includes employment with any member ofthe Company, subject to legal limitations. If you need help determining if your business unit ispart of the Company, call the HIBC.Participation service is used to determine your eligibility to participate in the Plan.Your years of vesting and participation service equal: On or after January 1, 2008* one year of service for any calendar year in which youcomplete 1,000 hours713048030v.6

HII Avondale Industries, Inc. Pension Plan for Shipyard EmployeesSummary Plan Description2014From January 1, 1997** through December 31, 2007 one year of service for anyEmployment Year in which you complete 1,000 hours From January 1, 1988 through December 31, 1996*** one year of service for each 12month period of employment, starting on the first day service is credited (typically, date ofhire) From January 1, 1985 through December 31, 1987*** your period of employment,from hire date to termination (if prior to or on December 31, 1987). * If you are an active participant in this Plan on December 31, 2007 and January 1, 2008, your vestingservice as of January 1, 2008 is equal to all your years of vesting service as of December 31, 2007,plus one additional year of service. Your vesting service at the time of your termination is equal to youryears of service as of January 1, 2008, plus your years of service after January 1, 2008, calculated asdescribed above.** Measured in completed years.*** Measured in completed years and months.If you terminate employment from the Company on or after January 1, 2008, you will becomevested in your Plan benefit after completing three years of vesting service. If you terminatedon or after January 1, 1989 and before January 1, 2008, you became vested in your Planbenefit after completing five years of vesting service*. You also become fully vested in yourbenefit when you reach age 65 while actively employed by the Company, regardless of yearsof vesting service.* Prior to January 1, 1989, you became vested after completing 10 years of service.Benefit ServiceBenefit service is used to determine the amount of your benefit. Benefit service is equal toyour: Historical service as of December 31, 1996, plusBenefit service credited on January 1, 1997 and later for each day you are employed by aparticipating business unit. Benefit service is equal to your years of service (measured in years and completeddays), beginning on your date of hire and ending on your date of termination.Exception: If you perform service for the Company within 12 months of yourtermination date, your period of absence is counted in calculating your benefitservice. Benefit service is counted for any period of a qualifying military leave, provided youreturn to active employment within five years of the beginning of your leave and within90 days of an honorable discharge, or if you die while on a qualifying military leave.No benefit service is granted beyond: The date you die, voluntarily terminate employment, are discharged, retire, or transfer toa nonparticipating entity or to a joint venture that is not part of the Company The first anniversary of a layoff or approved leave of absence The second anniversary of a parental absence (FMLA leave).You will also no longer receive benefit service upon the divestiture of your business unit. Ifyou need help determining if your business unit is part of the Company, call the HIBC.813048030v.6

HII Avondale Industries, Inc. Pension Plan for Shipyard EmployeesSummary Plan Description2014If you transferred to the Avondale Industries, Inc. Non-Represented Employees Pension Planon July 1, 2003, see “Appendix A” for a brief summary. If you participated in the Danly Hourlyor Danly Salaried Pension Plans, see “Appendix B” for details on your Danly benefit.If you transferred to the Northrop Grumman Retirement Value Plan on July 1, 2002, yourbenefit service under the Plan is frozen on June 30, 2002 (meaning you are credited forbenefit service under the Plan through that date). Beginning July 1, 2002, your benefitservice is determined under the rules of the Retirement Value Plan. See the NorthropGrumman Retirement Value Plan Summary Plan Description for details.Breaks in ServiceA break in service is a period during which you complete less than 501 hours of vesting servicein a calendar year (or Employment Year prior to January 1, 2008).If You Are Not VestedIf you experience five consecutive break-in-service years before you are vested: You forfeit your benefit under the Plan, and You will be treated as a new hire upon subsequent rehire. You will accrue a new benefit,and your prior vesting, participation, and benefit service will not be included in yourservice earned under the new employment period.If you were a prior participant and your break in service is less than five years, your years ofvesting and benefit service prior to your break in service will be restored after you completeone year of benefit service following your rehire.If You Are VestedIf you are vested and experience a break in service (regardless of the number of break-inservice years), your vesting and benefit service prior to your break in service will be restoredafter you complete one year of participation service following your rehire.If You Are on FMLA LeaveIf you are on an approved Family and Medical Leave Act (FMLA) Leave of Absence, youmay not incur a break in service. To keep from incurring a break in service, you can receivecredit for up to 501 hours of service. Your hours of service for this purpose are equal to theamount you would have received if you had continued working. If that number cannot bedetermined, you receive eight hours for each day you are absent, up to a maximum of 501hours of service, but you do not earn vesting or benefit service during this period. Hours ofservice for this purpose are usually credited during the calendar year in which your FMLAbegan. However, if you do not need the hours of service to prevent a break in service duringthat year, the hours of service are credited toward the following calendar year.RehiresSpecial participation rules apply if you are terminated from the Company and then rehired.913048030v.6

HII Avondale Industries, Inc. Pension Plan for Shipyard EmployeesSummary Plan Description2014Rehire Within One MonthIf you leave the Company and are rehired before the end of the month in which youterminated, your participation in the Plan is not affected your termination is “ignored” forpurposes of determining and/or maintaining your participation in the Plan and your years ofvesting, participation, and benefit service.Rehire After You Became a ParticipantIf you are a participant in the Plan at the time you terminate your employment with theCompany, and are later rehired, your participation and service will be impacted as follows: If you are rehired within 12 months of your termination date, your active participationresumes on your rehire date (you do not have to meet the one year of participationservice requirement upon rehire). Your termination is “ignored” for purposes ofdetermining your years of benefit service meaning your vesting and benefit serviceprior to your break in service will be restored upon rehire. If you are rehired more than 12 months after your termination date (even if youterminate again and are subsequently rehired within 12 months of your secondtermination date), your eligibility to be an active participant under the Plan starts over your active participation resumes on the date on which you complete one year ofparticipation service. Your vesting and benefit service prior to your termination will berestored after you complete one year of participation service following your rehire,provided you did not have five consecutive break-in-service years before you are vested.See “Breaks in Service” for details.Rehire If You Were Not a ParticipantIf you are rehired within the year* in which you terminate, or you do not have a one-yearbreak in service during the prior year: If you were not eligible to participate in the Plan before you terminated employment, yourparticipation date is January 1 or July 1 coincident with or following the date on which youbecome eligible. If you retire within the year in which you terminate, your prior hours ofservice will be included in determining your eligibility. If you were eligible to participate in the Plan before you terminated employment, but youdid not reach the participation date before your termination, you become a participant inthe Plan on January 1 or July 1 immediately following your rehire date.If you are not rehired within the same year* in which you terminate, and you experience abreak in service during the prior year: If you were not eligible to participate in the Plan before you terminated employment, yourparticipation date is January 1 or July 1 coincident with or following the date on which youbecome eligible. If you were eligible to participate in the Plan before you terminated employment, but youdid not reach the participation date before your termination, you become a participant inthe Plan on January 1 or July 1 following completion of one year of participation service(from your date of rehire).* Calendar year on and after January 1, 2008; Employment Year prior to January 1, 2008.1013048030v.6

HII Avondale Industries, Inc. Pension Plan for Shipyard EmployeesSummary Plan Description2014Final Average EarningsYour final average earnings (FAE) is your average monthly compensation for your fiveconsecutive highest paid years during the last ten years of your employment with theCompany. Months in which you do not receive compensation (e.g., due to a break in service)are not counted toward the average. If you have less than five years of monthlycompensation prior to your termination, your FAE is based on your average monthlycompensation for all years of employment.If you transferred to the Avondale Industries, Inc. Non-Represented Employees Pension Planon July 1, 2003, see “Appendix A,” or if you participated in the Danly Hourly or DanlySalaried Pension Plans, see “Appendix B.”Pension-Eligible CompensationThe definition of pension-eligible compensation for FAE purposes includes your monthlybase wages* in effect on July 1 of each year, plus any pre-tax contributions to a Companysponsored 401(k) or 125 plan.The following items are not included in pension-eligible compensation: BonusesOvertime payShift differentialsSeverance payImputed income or other non-cash compensationContributions or benefits under this Plan, the Performance Share Plan, the StockAppreciation Plan, or any other employee benefit plan Reimbursed expenses.The above is only a partial listing of pay components that are included in and excluded frompension-eligible compensation. The complete list is contained in the legal Plan document.Compensation in Your Year of TerminationYour compensation in the year in which you terminate from active employment is included inyour FAE only if the date of your termination is December 31(or the last working day of theyear if December 31 falls on a weekend).* If you are an hourly employee who works at least 2,080 hours per year, your basic hourly rate of payon July 1 is used to determine your compensation. Your hourly rate is multiplied by 2,080 hours, andthen divided by 12 months to obtain the monthly rate. For commission-based, temporary, and parttime employees, your monthly compensation is your compensation for the previous year divided by 12,unless you were not in active or paid leave status for the entire year. In that case, your actualcompensation is multiplied by the ratio of the number of calendar days in the year divided by thenumber of days you were in active status or on paid leave, and then divided by 12.Freeze on Compensation Earned at AMSEC LLCIf you voluntarily transfer to AMSEC LLC (“AMSEC”) on or after February 1, 2008,compensation earned at AMSEC will not be taken into account for purposes of determiningyour FAE for your benefit under the Plan.1113048030v.6

HII Avondale Industries, Inc. Pension Plan for Shipyard EmployeesSummary Plan Description2014If you voluntarily transferred to AMSEC before February 1, 2008, compensation earned atAMSEC on and after April 1, 2008 will no longer be taken into account for purposes ofdetermining your FAE for your benefit under the Plan. This means the Plan will no longerrecognize your compensation earned at AMSEC after March 31, 2008 for purposes ofdetermining your Plan benefits.Freeze on Compensation Earned at Avondale Engineering and ConstructionCo.If you transfer to Avondale Engineering and Construction Co. (“Avondale Engineering”) on orafter July 7, 2014, compensation earned at Avondale Engineering will no longer be taken intoaccount for purposes of determining your FAE for your benefit under the Plan. This meansthe Plan will no longer recognize your compensation earned at Avondale Engineering on orafter July 7, 2014 for purposes of determining your Plan benefits.Non-Duplication of BenefitsYo

If you transferred to the Northrop Grumman Retirement Value Plan on July 1, 2002, your benefit in the Plan is based on your participation through June 30, 2002. Beginning July 1, 2002, you became eligible for a cash balance benefit under the Retirement Value Plan. See the Northrop Grumman Re