Vought Aircraft Industries, Inc.

Flexible Benefits Plan

Summary Plan Description

for Employees Covered by the

IBEW Bargaining Agreement

Effective July 1, 2010

Letter to Plan Participants

Dear Flexible Benefits Plan Participant,

This Summary Plan Description (SPD), along with other documentation provided by carriers, provides detailed information about the health and welfare benefits provided by Vought Aircraft Industries, Inc. to its employees. We encourage you to utilize these documents to help you understand the provisions of the plans offered by Vought Aircraft, in particular, those plans which you and your dependents may be enrolled. Please keep this SPD and other documentation handy for future reference.

As you read through this SPD you will see that is it broken into sections related to a particular plan option, such as medical or dental, for easy reference. Each section describes the benefit options available under a plan, eligible and in-eligible expenses, and contact information for each provider or carrier. At the back is a glossary of commonly used terms.

By reading this SPD Vought hopes that you can become a more informed health care consumer. This will enable you to be better prepared to make cost effective decisions regarding services you and your dependents utilize under each plan. Health and welfare plans represent a significant cost to the organization. Your support in helping us to control costs as much as possible is appreciated.

At the back of this document you will find information about Continuation of Coverage Rights (COBRA), your rights under the Employment Retirement Income Security Act (ERISA) and the Health Insurance Portability and Accountability Act (HIPAA). Each of these laws provides protection to you regarding your benefits. Vought Aircraft encourages you to read these sections.

If you have a question regarding your benefits we encourage you use this SPD along with documents provided by providers, such as an Evidence of Coverage or Certificate of Insurance, to determine the answer. The VoughtBenefitsCenter is available Monday through Friday from 8 a.m. to 4:30 p.m. Central time if you have further questions. The contact number for the VoughtBenefitsCenter is 866-689-5999.

Sincerely,

DarabDenise_Sig.doc

Denise Darab

Manager, Benefits
Important note: This document does not create a contract of employment between Vought Aircraft Industries, Inc. (“the Company”) and any employee. Nothing in this booklet prevents the Company from terminating or changing the terms of any employee’s employment. The Flexible Benefits Plan is expected to be continued indefinitely. However, the Company reserves the right to amend, suspend, or terminate the Plan at any time. The Plan’s terms cannot be modified by written or oral statements to you from Human Resources or Benefits representatives or other personnel. No answer or statement by a Human Resources or Benefits representative or other person may be relied on if it differs from the terms set forth in the official Plan documents.

The self-insured health and welfare benefits provided under the Flexible Benefits Plan are described in detail in this document. The insured benefits provided under the Plan are described in detail in the Certificates of Coverage, Evidence of Coverage booklets or subscriber contracts through which those benefits are provided. Those separate documents are considered part of and must be read together with this Summary Plan Description, which contains the Plan rules regarding eligibility, participation, costs, and administration and other important information regarding the Plan that applies to the benefits described in those certificates and contracts.

Table of Contents

An Overview of Your Flexible Benefits Plan

Eligibility

Medical Plan Options

Terms and Explanations

Emergency Care and Hospitalization

Eligible Medical Expenses

Ineligible Medical Expenses

Vision and Hearing Care

Claims Administration

Prescription Drugs

Mental Health and Substance Abuse Treatment

Employee Assistance Program

Non-Duplication of Health Benefits

Special Situations

Dental Plan Options

Flexible Spending Accounts

Life Insurance

Basic and Optional Life Insurance

Accidental Death and Dismemberment Insurance

Optional Accidental Death and Dismemberment Insurance

Business Travel Accident Insurance

Disability Benefits

Group Legal

Employee Wellness Program – LiveWell@Vought

Administrative Information

ERISA – The Employee Retirement Income Security Act of 1974

Health Insurance Portability and Accountability Act (HIPAA)

COBRA – Continuation of Coverage

Plan Documents

Future of the Plans

Glossary

IBEW- Effective July 1, 2010

An Overview of Your Flexible Benefits Plan

How to Use This Document

This document describes the benefits, terms and conditions of the Flexible Benefits Plan (“the Plan”), which is offered to eligible non-represented employees of Vought Aircraft Industries, Inc. There may be other documents that are part of the official Plan documents and which legally govern the operation of the Plan. If there is any conflict between the official Plan documents and other documents relating to health and welfare benefits, the Plan documents will govern.

The Plan Administrator has the sole and absolute discretion to interpret and construe the terms of the Plan and to resolve any ambiguities in the Plan. The Plan Administrator can act through a delegate.

During normal working hours, you can review the annual report of the Plan’s operations and the Plan documents under which the Plan is established or operated. These documents are available from the Plan Administrator. You can also write to the Plan Administrator and ask for copies of any or all of these documents. They will be furnished at a reasonable charge within 30 days of receipt of the written request.

The Value of Your Benefits

Benefits under the Plan are an important part of your total compensation at Vought, adding significant value to your compensation package. Our benefits program is designed to be competitive in our industry and in our job markets – part of the corporate strategy to create a work environment that establishes us as aBest Place to Work. Our benefits program has numerous options with choices to help meet your personal and family needs.

You and the Company Share the Cost

Our ability to offer competitive health and welfare benefits is a cooperative effort between you and the company. Because of Vought’s purchasing power, we are able to negotiate cost-effective coverage for you and your family. Although the company pays the major portion of the cost of your benefits, you pay a part of the total cost of your coverage. However, your cost to participate in the Vought Aircraft Plan is generally significantly less than you would pay for comparable individual coverage.

Additional Resources

In addition to this summary, you have two other excellent resources for benefit information:

  • The VoughtBenefitsCenter. You can reach the BenefitsCenter; toll free, at 1-866-689-5999 Monday through Friday from 8 a.m. to 4:30 p.m. Central time. When you call, you may use your touch-tone phone to select from a menu of choices. One of your choices is to speak with a benefits representative, a Vought Aircraft employee trained and dedicated to providing you with prompt, accurate benefit information and services.
  • The Vought Benefits Web Site: Vought Aircraft's Intranet/Internet site provides quick access to information and benefit forms. The Web address is

Eligibility

Who Is Eligible for Benefits?

You are eligible for the benefits described in this plan summary if you are a full-time employee of Vought Aircraft Industries, Inc. who is covered by the bargaining agreement between the Company and the IBEW Local 20 and you are a United States citizen or legal resident.

Who Is an Eligible Dependent?

If you are eligible for the Vought Aircraft Industries, Inc. Flexible Benefits Plan, you may also cover your eligible dependents under the program.

Eligible dependents include:

  • Your legally recognized spouse

—This definition includes your common-law spouse if your state of residence recognizes common-law marriage and you provide a Declaration of Informal Marriage or a common-law affidavit to the company.

—This definition does not include your spouse if you are legally separated or divorced, even if the separation agreement or divorce decree states that health coverage must be provided. If the court orders you to provide coverage for your legally separated or divorced spouse, you must arrange for coverage on your own.

  • Your children, including:

—Your natural and adopted children, regardless of where they live.

—Stepchildren who live with you in a regular parent-child relationship.

—Children who are placed with you for adoption under age 18.

—Children for whom you have legal guardianship issued by a court of law.

—A minor child who qualifies as a dependent under the Internal Revenue Code.

—Children who are unmarried and under age 19, or under age 25 and a fulltime student.

Your child is considered a fulltime student if he or she is enrolled in 12 or more hours of a regular curriculum that leads to a diploma or degree at an accredited high school, technical school, college or university.

A temporary reduction in credit hours after the semester starts does not result in a change in status unless your child is no longer enrolled in a qualified program as described here. Your child is considered a fulltime student if he or she was enrolled for the prior semester, unless your child secures a fulltime permanent job, gets married, does not enroll when school resumes or is no longer supported by you.

NOTE: Eligible dependents do not include anyone who is a member of the armed forces of any country, including the United States Armed Services.

Eligibility of Disabled Dependents

Age requirements for qualified children can be waived if your child is disabled. Normally a child between the ages of 19 and 25 must be a full time student in order to be covered under the Plan. Disabled children may not be required to meet these requirements if all of the following provisions are met:

  • The child was covered or was eligible for coverage under the Plan while under age 19
  • The disability occurred before age 19 or the disability occurred between age 19 and 25 and the child was a full-time student as described above
  • The child is unmarried and unable to earn a living because of the disability
  • You are able to claim the child as a dependent on your Federal income tax return in accordance with IRS regulations.

A disabled dependent may not be eligible for coverage unless all the above provisions are met.

Medical and Dental Coverage for Your Working Spouse

If both you and your spouse work for Vought Aircraft or certain of its subsidiaries

If both you and your spouse work at Vought Aircraft Industries, Inc. or certain of its subsidiaries,you have the following options regarding health coverage:

  • One employee may elect coverage for their spouse and qualified dependents.
  • The other employee waives coverage. The employee who waived medical and/or dental coverage is not eligible for weekly Opt Out Dollars.
  • Both employees may elect coverage for themselves and qualified dependents
  • Qualified dependents may only be covered by ONE employee’s medical or dental plan option. Dependents cannot be covered by both employee’s medical or dental plan option.
  • Both employees may elect to waive medical and/or dental coverage.
  • Both employees will be eligible for weekly Opt Out Dollars.

If your spouse works for a company other than Vought Aircraft or certain of its subsidiaries

In many instances, the spouse of a Vought Aircraft employee has the opportunity to enroll for group medical coverage through his or her employer. If your spouse's employer pays 50% or more of the cost of medical coverage, Vought Aircraft requires your spouse to enroll in their employer’s coverage. This rule applies even if your spouse's employer offers only one option, such as a health maintenance organization.

After your spouse is enrolled in their employer’s plan, you may also elect to enroll your spouse in Vought’s plans and pay the associated weekly premium contribution. If you elect to enroll your working spouse in Vought Aircraft Industries, Inc.’s medical plan, you must annually certify your spouse’s eligibility under the terms of the Plan.

If you elect to enroll your spouse in Vought’s plans in addition to their employer’s plan, your spouse will have dual coverage. With dual coverage, your spouse’s medical plan is primary and will pay for benefits in accordance with their plan’s provisions, and then Vought Aircraft’s plan will pay secondary for remaining expenses in accordance with our plan’s provisions.

The claim for your spouse’s medical care must first be submitted to his or her employer’s plan as the primary payer. Once you receive an explanation of benefits (EOB) from your spouse's plan (reflecting either the amount of payment or a denial), you can submit the EOB along with your claim to your Vought Aircraft benefit claims administrator for reimbursement as a secondary payer.

For example, if your spouse's plan is an HMO but your spouse goes to a non-HMO doctor, in most cases the HMO would deny the claim. However, you can submit both the claim and the EOB to your Vought Aircraft Industries, Inc. medical plan provider for reimbursement under the terms of the Plan.

Please see the Non-Duplication of Benefits section for more information on dual coverage and Primary vs. Secondary coverage.

If you are an active employee and your spouse is a retiree of Vought Aircraft or certain of its subsidiaries

In such a case, you have three options for covering your retired spouse:

  • While you are an active employee, your spouse may be covered as your dependent under your medical and dental plan options in the Flexible Benefits Plan.
  • You can waive coverage and your spouse can cover you as a dependent under one of the retiree health care plans, if available.
  • You can be covered under the active medical and dental plan options and your spouse can be covered under his or her retiree medical plan option.

You and your retired spouse may onlybe covered by one Vought Aircraft Industries, Inc. plan. If both you and your spouse are eligible to enroll for optional benefits and one of you covers the other as a dependent, you are not eligible for weekly Opt Out Dollars.

If you are an active employee and your spouse is a retiree of another company

As a retiree of another company your spouse may be eligible for health benefits from their previous employer. In addition to benefits from their previous employer, you may elect to enroll your retired spouse into Vought’s plan. Depending on their age, your retired spouse may have coverage under Vought’s plan, their previous employer, and Medicare. The chart below illustrates how payment of your spouse's benefits will be coordinated depending upon their age:

How Your Spouse’s Benefits Are Paid
If your spouse is...
/
Vought’s active medical plan pays
/
Your spouse’s retiree medical plan option pays...
/
Medicare pays...
Under age 65 / First / Second / Not applicable
Over age 65 or Medicare eligible / First / Third / Second

Eligibility in Special Situations

If you are rehired or recalled by Vought Aircraft

If, after termination, you are rehired or recalled and return to Vought Aircraft Industries, Inc. employment within the same benefit plan year, your previous benefit elections for the benefit plan year will be reinstated (subject to eligibility rules and any intervening qualified life status changes) effective on your rehire or recall date. You will also be credited with the amount you paid toward your deductibles prior to separation if you return in the same benefit plan year.

If you are rehired or recalled and return to employment in a new benefit plan year, you will be given an opportunity to re-enroll for benefits as through you were a new hire, and your deductibles will start over. Any amounts the Plan has paid toward your annual or lifetime maximums before your Vought Aircraft Industries, Inc. employment ended will count toward those limits.

If you are on an off-site assignment

When your domestic or foreign country assignment begins, call the VoughtBenefitsCenter at 1-866-689-5999. A representative will research your situation and give you information on how your benefits are affected and how to submit claims.

If you transfer from your medical plan provider’s service area

If you transfer jobs and move out of your plan provider’s service area, you will receive a benefit package based on your new ZIP code. You and your family may then select new health care benefits based on your new address of record within 31 days of the transfer. When you move, it is important that you change your address in the company Human Resources system of record.