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					                             Vought Aircraft Industries, Inc.
                                Flexible Benefits Plan
                                   Summary Plan Description
                                      Effective July 1, 2005
                                  for Employees Covered by a
                           IBEW, UAW or SPFPA Bargaining Agreement


Dear Flexible Benefits Plan Participant,

     •    We are pleased to provide you with this summary of your Vought Aircraft Industries,
          Inc. Flexible Benefits Plan outlining your available medical, dental, flexible spending,
          employee assistance program, disability, and life insurance benefits.

This easy-to-read, comprehensive summary plan description will be a useful reference when
you have questions about your health and welfare benefits.

Each chapter provides clear and concise descriptions of your benefit plans and eligible
expenses, tips that can assist you in making benefit choices, and reference charts to provide a
quick overview of the components of the various options. In addition, there are answers to
frequently asked questions at the end of each chapter, and the index provides an easy guide to
information. There is also a list of commonly used terms in the glossary.
At the back of this document you’ll also find a general description of the Continuation of
Coverage Rights under COBRA, which may apply to you if you lose coverage for a qualifying
reason.
We encourage you to use this summary whenever you have a question about your benefits. If
you have further questions after checking the guide, or if you need a printed copy, please call
the Vought Benefits Center at 1-866-689-5999 Monday through Thursday from 8 a.m. to 8 p.m.
and on Friday from 8 a.m. to 4:30 p.m. Central time.

Thank you for the opportunity to be of service with your benefits.

Sincerely,


Cliff Collier
Manager, Benefits

The benefits described in this summary became effective July 1, 2005. They apply to full-time employees covered by
one of the separate bargaining agreements between the Company and the UAW Local 848, the IBEW Local 20, or
the SPFPA Local 263 and the eligible dependents of those employees. To the extent benefits differ based on which
bargaining unit the employee is a member of, those differences will be expressly noted within the summary.




                                                        1
                TABLE OF CONTENTS


General Information …………………………………………………………. 3
Medical Plan …………………………………………………………………..19
Dental Plan …………………………………………………………………… 51
Flexible Spending Accounts ……………………………………………… 61
Life Insurance ……………………………………………………………….. 77
Disability ……………………………………………………………………… 86
General Plan Administration ……………………………………………… 89
Glossary ………………………………………………………………………106




                        2
                GENERAL INFORMATION
Benefits with value and flexibility
.

The flexible benefits plan offers these advantages to participants:

        •   A benefits program with options for you... You can choose from a variety of
            benefit plan options that are best suited for you and your family.
        •   Tax advantages... You can save money on taxes by paying certain benefits with
            payroll dollars before taxes are deducted.
        •   Value added... Your benefits add significant value to your total compensation.

This section provides an overview of the benefits program, with details about each plan in the
sections that follow.

An Overview of Your Flexible Benefits Plan

The Value of Your Benefits

Your benefits program is an important part of your compensation package at Vought. Our
benefits program is designed to be competitive in our industry and in our job markets. 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 excellent health care benefits is a cooperative effort between you and the
company. Because of Vought’s purchasing power, we are able to negotiate the most cost-
effective coverage for you and your family. Although the company pays the major part of the
cost of your benefits, you will continue to pay a portion of the cost of your coverage. However,
your cost to participate in the Vought Aircraft benefits program is significantly less than you
would pay for comparable individual coverage.

Additional Resources

In addition to this summary, the company provides you with two other excellent sources for
benefit information:

    •   The Vought Benefits Center. You can reach the Center, toll free, at 1-866-689-5999
        Monday through Thursday from 8 a.m. to 8 p.m. and on 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.

        Please keep in mind that after 4:30 p.m. Central time, fewer benefits representatives are
        available to take your call. The best time to call the Vought Benefits Center is between 8
        a.m. and 4:30 p.m. Central time.

                                                3
   •   The Excel Web Site. Vought Aircraft’s Intranet/Internet site provides quick access to
       information and benefit forms. The Web address is

                                    benefits.voughtaircraft.com

Eligibility

Who is Eligible for Benefits?

You are eligible for the benefits described in this plan summary if you are a fulltime employee on
the payroll of Vought Aircraft Industries, Inc. (“the Company”) who is covered by one of the
separate bargaining agreements between the company and the UAW Local 848, the IBEW
Local 20, or the SPFPA Local 263, 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 plan.

Eligible dependents include:
    1. Your legally recognized spouse
            • This definition includes your common-law spouse if your state 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 legally separated or divorced spouse, even
              if the separation agreement or divorce decree states that coverage must be
              provided. If the court orders you to provide coverage for your legally separated or
              divorced spouse, you must arrange for such coverage on your own.

       You may enroll your employed spouse as explained in the section entitled “Coverage for
       Your Working Spouse”.

   2. Unmarried children who are dependent on you for support – This definition includes:
        • Your natural child, legal ward (for whom you have legal guardianship issued by a
            court of law), or legally adopted child, if the child is under age 19, is under age 25
            and a full-time student, or is disabled
        • A natural child, legal ward, or legally adopted child of your spouse, if the child
            resides with you in a parent/child relationship, and if the child is under age 19, is
            under age 25 and a full-time student, or is disabled

       A child is a full-time student if he or she is enrolled in a regular curriculum at an
       accredited high school, technical school, college or university. The curriculum must lead
       to a degree and the child must take no less than twelve (12) credit hours per semester,
       or equivalent courseload. A temporary reduction in credit hours once the semester has
       started does not cause a change in status unless the child is no longer enrolled in a
       degree program.

       A child continues to be considered a full-time student if he or she was enrolled the
       previous semester unless the child secures a full-time permanent job, gets married, does
       not enroll when school resumes, or is no longer being supported by you.



                                                  4
       A disabled child is one who is unmarried, unable to earn a living because of a mental or
       physical handicap, and is fully dependent on you for financial support. To be eligible for
       coverage past age 19, or past age 25 if a full time student, the disabled dependent must
       have been covered or eligible for coverage under Vought’s plan before reaching the
       maximum age for coverage; and the disability must have occurred before the child
       reached the maximum age. A disabled dependent is not covered unless all the above
       conditions are met. Coverage for a disabled child can continue as long as the child
       remains disabled and your coverage is also in effect. You should contact the Vought
       Benefits Center for information on how to certify dependent disability.

       If a child is claimed as a dependent by parents who are divorced or separated so that
       the child could be covered by two or more company employees, the company will allow
       only one employee to enroll the dependent in health care coverage. That employee will
       be determined in the following order:

       •   the parent with whom the child is living;
       •   the other parent; or
       •   the step-parent with whom the child lives.

Eligible dependents do not include any person who is a member of the armed forces of any
country.
This chart outlines who is eligible to participate in the Flexible Benefits Plan:

                         Benefit Options
                                             Fulltime          Eligible
                                            Employees        Dependents
                                  Medical       X                 X
                                    Dental      X                 X
                        Flexible Spending       X                 X
              (health care and dependent
                                 day care)
                    Employee Assistance         X                 X
                           Program (EAP)
                                 Disability     X
               Basic Life/Business Travel       X
                                 Accident
                             Optional Life      X
                           Dependent Life                         X




                                                5
How is Dependent Eligibility Verified

To enroll dependents after the initial enrollment period, the employee (including new hires) must
provide evidence of eligibility, such as a birth certificate or marriage license. The Company
reserves the right at any time to require documents to verify eligibility of any dependent.

Coverage for your Working Spouse

If Both You and Your Spouse Work for Vought Aircraft Industries, Inc.

If both you and your spouse work at Vought Aircraft Industries, Inc., one spouse can opt out of
medical and dental coverage and the other spouse can cover both of you. Or, each spouse can
elect separate coverage. However, only one spouse can cover your eligible dependents for
medical and dental benefits. Both employees may cover eligible dependents for flexible
benefits, such as dependent life insurance.

If Your Spouse Works for an Employer Other Than Vought Aircraft Industries, Inc. or
Certain of Its Subsidiaries

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

Coverage by a medical plan through the other employer does not prevent your spouse, as your
covered dependent, from using your Vought Aircraft Industries, Inc. medical plan. However, the
claim for your spouse’s medical expenses must first be submitted to his or her employer’s plan
as the primary payor. Once your spouse receives an explanation of benefits (EOB) from their
employer’s plan (reflecting either the amount of payment or a denial), he or she then can submit
the EOB along with their claim to the Vought Aircraft medical claims administrator. If the claim
is eligible for payment under the Vought plan, Vought will act as a secondary payor. In no case
will your spouse be eligible to receive more than the total amount of the medical claim.

If You Are an Active Employee and Your Spouse Is a Retiree of Vought Aircraft
Industries, Inc., or Certain of Its Subsidiaries

In such case, you may have several 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.
    • If you choose, you can waive coverage, and your spouse can cover you as a dependent
       under his or her retiree medical plan options, if available.
    • You can be covered under your medical and dental plan options and your spouse can be
       covered under his or her retiree medical plan, if available. Note: There may be some
       exceptions. Call the Vought Benefits Center if you have questions.

You and your spouse can be covered by only one Vought Aircraft Industries, Inc. medical plan
each.




                                                6
If You Are an Active Employee and Your Spouse Is a Retiree of Another Employer

The chart below illustrates how your spouse’s benefits are paid if:
   • Your spouse is retired from an employer other than Vought
   • You enroll your spouse as a dependent in your Vought Aircraft Industries, Inc. medical
      plan
   • Your spouse enrolls in his or her company’s retiree medical plan, if any.

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

Eligibility in Special Situations

If you are Rehired or Recalled by Vought Aircraft

If you are rehired or recalled and return to Vought Aircraft Industries, Inc. employment, you will
be given an opportunity to re-enroll for benefits.

If you leave the company and return within the same benefit plan year, you are credited with the
amount that you paid toward your deductible before your termination. If you are rehired or
recalled during a later benefit plan year, your deductibles for the new plan year 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 a Temporary Off-Site Assignment

When your domestic or foreign country temporary assignment begins, call the Vought Benefits
Center, 1-866-689-6999. A representative will research your situation and give you information
on how your benefits are affected and how to submit claims.

If You are on Leave from Vought Aircraft

While you are on leave from the company, you are required to continue contributions for your
benefits. You can contribute by automatic payroll deductions if you are receiving a paycheck.

If you are not receiving a paycheck while on leave, you may pay for your benefits by writing a
personal check to Vought Aircraft Industries, Inc.

Send it to:
        Payroll Department, M/S 49L-44
        Vought Aircraft Industries, Inc.
        P. O. Box 655907
        Dallas, TX 75265-5907

Failure to make these payments in a timely manner could result in loss of coverage.




                                                 7
Enrolling for Benefits

New Employee

As a new employee, you will receive information about your benefit options. The enrollment
materials will also include your cost for each option. You are expected to enroll yourself and
any dependents for flexible benefits within 30 calendar days of your hire date. Your benefit
elections will then be effective retroactive to your hire date for both you and your enrolled
dependents. You must provide documents that substantiate your dependents’ eligibility for
coverage prior to their coverage beginning.

If you do not enroll within your first 31 days of employment, you will be covered by basic
benefits and the default flexible benefits listed below. Basic and default benefits apply only to
you; no dependents are covered unless you enroll them within the required 31 days.

If you waive coverage or do not enroll during your first opportunity after you are hired, you can
enroll for benefits during the next Annual Enrollment. The medical and/or dental plans do not
require Evidence of Insurability (EOI) if you make your elections during the annual enrollment.
However, other benefit options will require an EOI at that time.

Enrollment within 60 days of a “Qualifying Change in Status” will not require EOI if the change is
commensurate with the life event or status change.

Annual Enrollment

Each year you have an opportunity to reassess your benefit choices and make changes during
Annual Enrollment. Any changes you make remain in effect for the following benefit plan year –
from July 1 through the following June 30.

Several weeks before Annual Enrollment, Vought Aircraft Industries, Inc. makes information
available about enrolling for flexible benefits and your share of the costs for the new plan year.
Often, the benefit options from the previous benefit plan year – including your Flexible Spending
Accounts – will continue. However, benefit options and your share of the cost may change from
year to year, so it is important to review your Annual Enrollment materials each year and act
promptly if you want to make changes in your coverage.

Two Types of Benefits – Basic and Optional

The Vought Aircraft flexible benefits program includes two types of benefits – basic benefits
provided at no cost to you, and optional benefits for which you may enroll yourself and any
eligible dependents you wish to cover.

Basic benefits apply only to you, and because the company provides them at no cost, you
receive them automatically. The following are the company-provided basic benefits:

   •   Basic life insurance
   •   Basic dental coverage through Unicare
   •   Employee assistance program (EAP)




                                                 8
Your benefit program also allows you to purchase – through weekly payroll deductions – other
benefits for yourself and your family. These are called optional benefits, and you and Vought
Aircraft Industries, Inc. share the cost of these benefits. You must make an election during
enrollment to receive optional benefits.

If you do not enroll for optional benefits during the enrollment period, you will be covered by the
default medical and dental plans with your corresponding contributions deducted from your
pay each pay period, unless you opt to waive medical coverage by completing a waiver form.
These default benefits are effective retroactive to your date of hire:

   •   Premium PPO medical
   •   Unicare dental (this benefit is offered to you even if you waive medical coverage)

Your benefits remain in effect for the entire benefit plan year. You can make changes, including
coverage for your dependents, only during the next Annual Enrollment or with a qualified
change in status.

Selecting Your Coverage Category

When you select your optional benefits, you also elect your coverage category (the number of
dependents you want to cover). You can choose from the following categories:
   Medical Coverage
   • Employee only
   • Employee + family (employee, child[ren], and/or spouse)
   • No coverage.

   Dental Coverage
   • Employee only
   • Employee + 1 dependent
   • Employee + 2 or more dependents

Your Cost for Coverage

Weekly Employee Contributions

Once you choose your coverage category, you can make your benefit selections.

Each benefit option has a cost associated with it, a cost shared by you and the company. Your
share of the cost of the benefit is deducted from your pay each pay period. A schedule of costs
will be provided at the time of enrollment.

Before-Tax and After-Tax – What is the Difference?

There are certain benefits the Internal Revenue Service allows you to purchase on a before-tax
basis and others you must purchase on an after-tax basis.

With before-tax payroll dollars, you pay for medical and dental coverage, Flexible Spending
Accounts for dependent care, and out-of-pocket health care expenses. With after-tax dollars,
you pay for optional life insurance for yourself (for amounts that exceed the basic benefit of
$35,000), and dependent life insurance for your spouse and child(ren).



                                                 9
When you purchase benefits with before-tax dollars, you pay for your coverage before federal
and Social Security taxes are deducted from your paycheck. In other words, you pay for these
benefits with tax-free money. This tax-free payment method can lower your taxable income,
which then lowers your tax liability and increases your take-home pay. However, the tax
savings now also may cause you to pay less into Social Security, and your Social Security
benefit could be slightly reduced in the future.

Changing Your Coverage During the Plan Year

Under IRS rules, a qualified change in status allows you to make changes in benefit elections
that you purchase with before-tax dollars. These include medical, dental, and Flexible Spending
Accounts. Any changes to your benefits elections must be consistent with the type of status
change you experience.

For benefit elections that you purchase with after-tax dollars, the rules of the plan determine
whether changes are allowed during the plan year.

In the case of a divorce, to drop coverage on your spouse, you must provide a copy of the first
page of the divorce decree and the page signed by the court. Otherwise, you do not need to
provide substantiating documents to drop coverage of a dependent.

If you want to add a dependent to your coverage because of a change in life status – marriage,
birth or adoption of a child, for example, go to the Excel website and follow the instructions or
complete the Add/Change Form and send it, along with copies of documents that substantiate
the change in life status, to the Vought Benefits Center.

Examples of acceptable documents are a birth certificate, marriage license, adoption papers,
court order or evidence of current registration at a college or university for a dependent age 19
to age 25. To add coverage for a stepchild living with you, provide a birth certificate and
evidence of place of residence, such as a school record.

You may go to the Excel website and select “Dependent Change” which will then allow you to
make the change online. Or, you can call the Vought Benefits Center for assistance.
Paper changes can be mailed with copies of applicable documents, internally, to Benefits,
Dallas, M/S 49L-02 or, externally, to:

       Benefits, M/S 49L-02
       Vought Aircraft Industries, Inc.
       P. O. Box 655907
       Dallas, TX 75265-5907

Do not send original documents. They will not be returned.




                                                10
What is a Qualified Status Change?

The plan administrator assesses your situation and determines if your change is a qualified
change in status as defined by the Internal Revenue Service. Qualified changes in status rules
apply to your before-tax benefits only (medical, dental, and Flexible Spending Accounts).

To make changes in your before-tax benefit options outside of initial or annual enrollment, all
three of the following must occur:
    • You experience a qualified change in status as defined by the IRS (see the following list)
    • Your change in status causes a gain or loss of eligibility for a Vought Aircraft Industries,
       Inc. flexible benefits plan, your spouse’s plan, or the plan of your dependent’s employer;
       and
    • Your new election corresponds to the gain or loss of coverage (for example, if you have
       a baby or get married, you can change your coverage category to add your new
       dependent).

Qualified changes in status do not allow you to switch between plan options (e.g., from Unicare
to Delta Dental).

The following are qualified changes in status:

   •   Changes in marital status, including marriage, divorce, legal separation, annulment, and
       death of spouse
   •   Change in number of dependents, including birth, adoption, placement for adoption, and
       death of dependent
   •   Change in employment status (termination or commencement of employment) for you,
       your spouse, or your dependent
   •   Change in work schedule, including a reduction or increase in hours of employment for
       you, your spouse, or your dependent; a change between part-time and fulltime status; a
       strike or lockout, and beginning or returning from an unpaid leave of absence
   •   Inability of you or your dependent to meet the health care provider’s coverage
       requirements because of a change in age, student status, or other similar circumstances
   •   Change in residence or worksite for you, your spouse, or your dependent that results in
       a loss of coverage
   •   Enrollment by you, your spouse or a dependent in Medicare or Medicaid
   •   Significant gain or loss in coverage (e.g., your spouse loses coverage in his or her
       employer’s plan)
   •   A court judgment, decree, or order requiring coverage for your dependent child(ren)
   •   Any other changes allowed by IRS regulations.

What Happens to Your Benefits in Special Situations

Throughout your career, you are likely to experience changes in your personal and professional
life. These may include changes such as marriage or the birth of a child. They also may
include job-related changes, such as taking a leave of absence, terminating employment, or
retiring. Some of these changes may affect your benefits.




                                                 11
The following chart summarizes how certain situations affect your coverage:


           What Happens to Your Benefits in Special Situations
                                                     Qualified Change in Status

        Benefit Option                     Marriage, divorce, adding a dependent and
                                              certain employment status changes

                          Dental You can start, stop, or change your coverage within 60 days of a
                                   qualified change in status as long as the change is consistent with
                                   the qualified change in status.


                       Medical     You can start, stop, or change your coverage within 60 days of a
                                   qualified change in status as long as the change is consistent with
                                   the qualified change in status.


           Health Care Flexible You can start, stop, or change your coverage within 60 days of a
            Spending Account qualified change in status as long as the change is consistent with
                                   the qualified change in status.


       Dependent Care Flexible You can start, stop, or change your coverage within 60 days of a
            Spending Account qualified change in status as long as the change is consistent with
                                   the qualified change in status.


Employee Assistance Program Coverage continues

                      Basic Life Coverage continues

       Optional Life (employee) You can start or change your coverage within 60 days of a
                                   qualified change in status.


                 Dependent Life You can start or change coverage within 60 days of a qualified
                  (spouse/child) change in status or stop or reduce coverage at any time.

     Business Travel Accident Coverage continues




   What Happens to Your Benefits in Special Situations (continued)
  Benefit Options                                   Leaves of Absence


                            Medical Leave               Family Leave              Military Leave



                                               12
           Medical Coverage continues for the        Coverage continues to      Vought Aircraft
                     duration of your approved       the end of the month       Industries complies
                     leave (one to two years         plus up to four            with company policy,
                     depending on your               additional months from     specific plan and
                     seniority), provided you        the day your leave         contract provisions and
                     make any required               begins, provided you       directives, as well as
                     contributions.                  make any required          federal and state laws
                                                     contributions.             regarding military
                                                                                leave. For more
                                                                                information, contact
                                                                                your Customer Support
                                                                                Representative or site
                                                                                Benefits office

            Dental Coverage continues for the        Coverage continues to
                     duration of your approved       the end of the month
                     leave, provided you make        plus up to four
                     any required contributions.     additional months from
                                                     the day your leave
                                                     begins, provided you
                                                     make any required
                                                     contributions.

      Health Care If you are on unpaid leave,        If you are on unpaid
         Flexible you can continue to make           leave, you can
Spending Account contributions to your FSA           continue to make
                     on an after-tax basis. If you   contributions to your
                     stop making contributions,      FSA on an after-tax
                     you can be reimbursed for       basis. If you stop
                     expenses for only that          making contributions,
                     period during which you         you can be reimbursed
                     were participating. Claims      for expenses for only
                     that you incur after your       that period during
                     participation ends are not      which you were
                     eligible for reimbursement.     participating. Claims
                                                     that you incur after
                     If you are receiving pay        your participation ends
                     during your leave, your         are not eligible for
                     contributions will continue     reimbursement.
                     through payroll deductions.
                                                     If you are receiving pay
                                                     during your leave, your
                                                     contributions will
                                                     continue through
                                                     payroll deductions




                                               13
   What Happens to Your Benefits in Special Situations (continued)
  Benefit Options                                     Leaves of Absence


                            Medical Leave                  Family Leave         Military Leave

    Dependent Care Your before-tax                     Your before-tax
  Flexible Spending contributions stop during          contributions stop
            Account an unpaid leave.                   during an unpaid
                                                       leave.
                       If the leave is paid,
                       contributions continue.         (If the leave is paid,
                                                       contributions
                                                       continue.)

         Employee Coverage continues for the           Coverage continues to
Assistance Program duration of your approved           the end of the month
                       leave.                          plus up to four
                                                       additional months from
                                                       the day your leave
                                                       begins.

          Basic Life Coverage continues for the        Coverage continues to
                       duration of your approved       the end of the month
                       leave.                          plus up to four
                                                       additional months from
                                                       the day your leave
                                                       begins.

       Optional Life Coverage continues. For           Coverage continues to
        (employee) up to one year, you must            the end of the month
                       continue to make your           plus up to four
                       optional life contributions.    additional months from
                       After fifty-two weeks, and      the day your leave
                       once you are approved for       begins, provided you
                       waiver of premium, your         make required
                       contributions are waived.       contributions
    Dependent Life Coverage continues for the          Coverage continues to
   (spouse & child) duration of your approved          the end of the month
                       leave, provided you make        plus up to four
                       any required contributions      additional months from
                                                       the day your leave
                                                       begins, provided you
                                                       make required
                                                       contributions

    Business Travel Coverage stops on the              Coverage stops on the
          Accident date of your leave                  date of your leave




                                                 14
   What Happens to Your Benefits in Special Situations (continued)
 Benefit Options                                  Terminate Employment
                          Quit/Discharge                      Retire               Disability Income

            Medical Coverage stops on your            Coverage continues to       Coverage continues to
                      termination date. You           the end of the month of     the end of the month of
                      can elect COBRA                 your termination date.      your termination date.
                      continuation within 60          Certain employees may       Certain employees may
                      days from the end of            be eligible for a retiree   be eligible for a retiree
                      coverage if eligible.           medical plan.               medical plan.
                                                      Otherwise, you can          Otherwise, you can
                                                      elect COBRA                 elect COBRA
                                                      continuation within 60      continuation within 60
                                                      days.                       days.

              Dental Coverage stops on your           Coverage continues to       Coverage continues to
                      termination date. You           the end of the month of     the end of the month of
                      can elect COBRA                 your termination date.      your termination date.
                      continuation within 60          You can elect COBRA         You can elect COBRA
                      days from the end of            continuation within 60      continuation within 60
                      coverage if eligible.           days.                       days.

Health Care Flexible Your before-tax                  Your before-tax             Your before-tax
 Spending Account contributions stop with             contributions stop with     contributions stop with
                      your final paycheck. If         your final paycheck. If     your final paycheck. If
                      you want to continue            you want to continue        you want to continue
                      participating in your FSA       participating in your       participating in your
                      until the end of the            FSA until the end of the    FSA until the end of the
                      benefit plan year (June         benefit plan year (June     benefit plan year (June
                      30), you can make after-        30), you can make after-    30), you can make
                      tax contributions to the        tax contributions to the    after-tax contributions
                      COBRA administrator. If         COBRA administrator. If     to the COBRA
                      you do not elect COBRA,         you do not elect            administrator. If you do
                      you have 90 days from           COBRA, you have 90          not elect COBRA, you
                      the end of the plan year        days from the end of the    have 90 days from the
                      to file claims for              plan year to file claims    end of the plan year to
                      expenses incurred               for expenses incurred       file claims for expenses
                      before your termination         before your termination     incurred before your
                      date.                           date.                       termination date.

    Dependent Care Your before-tax                    Your before-tax             Your before-tax
  Flexible Spending contributions stop on             contributions stop on       contributions stop on
            Account your termination date.            your termination date.      your termination date.
                      You have 90 days from           You have 90 days from       You have 90 days from
                      the end of the benefit          the end of the benefit      the end of the benefit
                      plan year to file claims        plan year to file claims    plan year to file claims
                      for expenses incurred           for expenses incurred       for expenses incurred
                      before your termination         before your termination     before your termination
                      date.                           date.                       date.




                                                 15
What Happens to Your Benefits in Special Situations (continued)
  Benefit Options                                 Terminate Employment
                          Quit/Discharge                    Retire              Disability Income
         Employee      Coverage stops on your       Coverage continues to        Coverage stops on
Assistance Program        termination date          the end of the month of     your termination date
                                                     your termination date

         Basic Life    Coverage continues for       Coverage continues for       Coverage continues
                          31 days from your            31 days from your       until termination unless
                       termination date, during     termination date, during   approved for waiver of
                         which time you can           which time you can        premium, then waiver
                       convert to an individual     convert to an individual       ends at age 65.
                           whole life policy            whole life policy.

       Optional Life   Coverage continues for       Coverage continues for       Coverage continues
        (employee)        31 days from your             31 days from your      until termination unless
                       termination date, during     termination date, during   approved for waiver of
                         which time you can            which time you can       premium, then waiver
                       convert to an individual     convert to an individual       ends at age 65.
                           whole life policy.            whole life policy.
                                                     Continuation privileges
                                                     may apply (check your
                                                     retiree benefit program
                                                          for continuation
                                                            availability)

    Dependent Life     Coverage continues for       Coverage continues to      Coverage continues for
   (spouse & child)       31 days from your          age 70, if purchased         31 days from your
                       termination date, during     prior to retirement then   termination date, during
                         which time you can          you can convert to an       which time you can
                       convert to an individual       individual whole life    convert to an individual
                           whole life policy                  policy               whole life policy

    Business Travel    Coverage stops on your       Coverage stops on your       Coverage stops on
          Accident        termination date             termination date         your termination date

  Benefit Options                                 Terminate Employment

                          Layoff / Reduction in Force                    Employee’s Death

            Medical Coverage stops on your termination          Coverage continues to end of the
                       date; however, you may elect to          month plus 30 days. Covered
                       continue coverage for 30 additional      dependents can elect COBRA
                       days after your termination date. You    continuation within 60 days from the
                       can elect COBRA continuation within      end of coverage.
                       60 days from the end of coverage

             Dental Coverage stops on your termination          Coverage continues to the end of the
                       date; however, you may elect to          month plus 30 days. Covered
                       continue coverage for 30 additional      dependents can elect COBRA
                       days after your termination date You     continuation within 60 days from the
                       can elect COBRA continuation within      end of coverage.
                       60 days from the end of coverage.


                                               16
   What Happens to Your Benefits in Special Situations (continued)
  Benefit Options                                 Terminate Employment

                           Layoff / Reduction in Force                    Employee’s Death

Health Care Flexible Your before-tax contributions stop on        Contributions stop on the date of
 Spending Account your termination date. If you want to           death. Your dependents have 90 days
                        continue participating in your FSA        from the end of the benefit plan year
                        until the end of the benefit plan year,   to file claims for expenses incurred
                        you can continue to make after-tax        before your death.
                        contributions through the COBRA
                        administrator. If you stop making         Your dependents can continue FSA
                        contributions, you can be reimbursed      participation through the end of the
                        for expenses only for that period         benefit plan year by making after-tax
                        during which you participated. Claims     contributions through the COBRA
                        that you incur after your participation   administrator.
                        ends are not eligible for
                        reimbursement. You have 90 days           Expenses are reimbursable only for
                        from the end of the benefit plan year     that period during which contributions
                        to file claims for expenses incurred      were made. Claims incurred after
                        before your termination date.             participation ends are not eligible for
                                                                  reimbursement.

    Dependent Care Your before-tax contributions stop on          Contributions stop on the date of
  Flexible Spending your termination date. You have 90            death. Your dependents have 90 days
            Account days from the end of the benefit plan         from the end of the benefit plan year
                        year to file claims for expenses          to file claims for expenses incurred
                        incurred before your termination date     before your death

         Employee Coverage continues to end of the                Dependent coverage terminates on
Assistance Program month plus 30 days.                            the date of death.

           Basic Life Coverage continues for 31 days from         Your beneficiary receives the amount
                        your termination date, during which       of your basic life insurance.
                        time you can convert to an individual
                        whole life policy.

       Optional Life Coverage continues for 31 days from          Your beneficiary receives the amount
        (employee) your termination date, during which            of your optional life insurance.
                        time you can convert to an individual
                        whole life policy.

       Optional Life Coverage continues for 31 days from          Coverage continues for 31 days from
    (spouse & child) your termination date, during which          the date of death, during which time
                        time you can convert to an individual     your spouse can convert to an
                        whole life policy.                        individual whole life policy.




                                                 17
 What Happens to Your Benefits in Special Situations (continued)
Benefit Options                           Terminate Employment

                      Layoff / Reduction in Force             Employee’s Death

 Business Travel Coverage stops on your termination   If you die in an accident while
       Accident date                                  traveling on business, your
                                                      beneficiary receives the amount of
                                                      your business travel accident
                                                      insurance; otherwise coverage stops
                                                      on the date of death.




                                         18
                           MEDICAL PLAN
Your Medical Plan Options

Your Medical Plan

Coverage for medical, surgical, and vision benefits is provided through the Blue Cross Blue
Shield Premium PPO plan and administered by Blue Cross Blue Shield. Prescription drug
benefits are administered through Caremark. Mental health and substance abuse benefits are
administered by ValueOptions.

Opting out of Medical Coverage

If you do not want medical coverage or you have coverage from another source, you may
choose to opt out of the Vought Aircraft medical plan options altogether by completing a form
and returning it to the Vought Benefits Center. If you make that choice, neither you nor your
eligible family members will have medical, prescription drug, vision, hearing or mental health
and substance abuse benefits through Vought Aircraft flexible benefits. However, you still
receive benefits under the employee assistance program (EAP).

Premium PPO
You may elect the Premium PPO within 30 days after the date you are hired, during the Annual
Enrollment period, or within 60 days of a qualified change in status. The Premium PPO plan
features a network of preferred health care providers. The network is a group of physicians,
hospitals, and other health care providers who meet Blue Cross Blue Shield’s quality standards.
Each provider agrees to:

   •   Undergo an extensive quality screening process
   •   Comply with Blue Cross Blue Shield’s quality measures and protocols
   •   Provide care at discounted rates

The PPO network includes providers in all states. To determine where a network is located,
contact Blue Cross Blue Shield. After you pay the benefit plan year deductible, the PPO plan
would pay 90% of your in-network eligible medical expenses.

In- or Out-Of-Network?
The Choice is Yours

Under the Premium PPO plan, there are two levels of benefits; in-network and out-of-network.
Each time you or an enrolled family member needs medical care, you can decide whether to
use a health care provider who is part of Blue Cross Blue Shield’s network and receive in-
network benefits.

When you receive in-network care, the Premium PPO pays a higher level of benefits. You pay
a lower deductible for in-network care.


                                              19
Or, you may visit any doctor, hospital or ancillary provider for lab or x-ray services outside the
network and receive out-of-network benefits. That means you pay a higher deductible and
coinsurance, and higher out-of-pocket limits, and you may be responsible for expenses above
the usual, reasonable and customary charge. When you receive care from an out-of-network
provider, your Premium PPO plan pays a lower percentage of eligible expenses.

                                In-Network                 Out-of-Network
Office Visit               $20 copay*                40% co-insurance
Specialist Visit           $40 copay*                40% co-insurance
X-Ray & Lab                10% co-insurance**        40% co-insurance
Lifetime Maximum           $8 Million                $300,000
*Does not count toward your deductibles and out-of-pocket maximums
**10% co-insurance ends once the out-of-pocket maximum has been met

Out-of-State Health Care

The Premium PPO plan allows you to visit Blue Cross Blue Shield PPO network providers in
other states and receive in-network coverage. If you do not visit a PPO network provider, you
receive out-of-network benefits, which are subject to usual, reasonable and customary limits on
charges.


Access to In-Network Benefits

Each time you need medical care, if you are enrolled in the Vought Aircraft Industries, Inc.
Premium PPO plan administered by Blue Cross Blue Shield, you decide whether to use an in-
network or an out-of-network provider. Since Blue Cross Blue Shield administers large
networks, you should be able to locate an in-network provider if you want to receive in-network
care.



   •   Under the Premium PPO plan, you receive in-network benefits whenever you visit a
       network provider. Visit the Blue Cross Blue Shield website for more information. The
       internet address is
                                       www.bcbsil.com

   •   You are not limited to Blue Cross Blue Shield network providers in your state; you can
       receive care from any Blue Cross Blue Shield network provider in the United States.
   •   You can visit any network physician, specialist or facility of your choice and receive in-
       network benefits. However, it is your responsibility to ensure that network providers treat
       you. Do not assume that your physician referred you to a network provider.

Usual, Reasonable and Customary Charges

Usual, reasonable, and customary (URC) charges are the “going rate” for services in your
geographic area. The claims administrator determines the URC charge for all services covered
under the Vought Aircraft Premium PPO plan. When your expenses exceed the URC charge,
your plan reimburses your eligible expenses based on the URC charge. You pay 100% of the



                                               20
fees over the URC charge. When you receive care from an in-network provider, expenses do
not exceed the URC rate.

Some Terms and Explanations

Benefit Plan Deductible

The deductible is the amount you pay before your medical plan begins to pay your eligible
medical expenses. At the beginning of each benefit plan year, a new annual deductible begins.
Expenses credited to your deductible in one year do not carry over to the next.


                                  In-Network Deductible    Out-of-Network Deductible
              Individual                  $200                       $400
              Family                      $400                       $800


Expenses for Which There is No Deductible

There is no deductible for the following expenses under the Vought Aircraft Industries, Inc.
Premium PPO plan:
   • Hearing care
   • Vision care
   • The cost of wigs to the extent covered by the plan if prescribed by a physician for
       medical reasons
   • Preventive care, such as an annual physical, children through age 5 and for adults.

Expenses That Do Not Count Toward the Deductible

These expenses do not count toward your benefit plan year deductible under the Premium PPO
plan:
    • Copayments
    • Expenses that exceed the URC charge, as determined by the claims administrator
    • Any pre-certification penalties you incur
    • Penalties for out-of-network hospital visits
    • Charges for prescription drugs through Caremark
    • Charges that exceed any benefit plan year maximum
    • Charges for mental health and substance abuse treatment
    • Ineligible expenses, such as cosmetic surgery or experimental procedures

Meeting the Annual Family Deductible

You can combine eligible expenses of any two or more enrolled family members during a
benefit plan year toward meeting the annual family deductible. However, the most you can
count from any one family member is the maximum annual deductible for one person under the
medical plan.




                                               21
What is the Copayment?

When an in-network provider charges you for an office visit, you make a copayment directly to
the provider. (If you have a Flexible Spending Account and your provider accepts Master Card,
you may be able to use your FSA debit card for your copay and avoid filing a claim for
reimbursement of your costs.)

The amount of the copayment varies. You will pay a $20 copayment on each visit to the:
   • Family Practitioner
   • General Practitioner
   • Internal Medicine Specialist
   • Pediatrician
   • Obstetrician/Gynecologist (OB/GYN)
   • Chiropractor

You pay a $40 copayment when you see a specialist. You pay a copayment every time you
visit a provider; regardless of the number of times in a benefit plan year you may visit.
Copayments do not apply to your deductible or out-of-pocket maximum.

What is Coinsurance?

After you meet the benefit plan year deductible, the Vought Aircraft Industries, Inc. Premium
PPO plan pays a percentage of your eligible expenses; you pay the remaining amount. The
amount YOU pay is called “coinsurance.” Coinsurance amounts apply to your out-of-pocket
maximum.

After you meet your annual deductible, the Premium PPO plan pays 90% of eligible expenses
in-network; you pay 10% coinsurance.

After you meet your annual deductible, the Premium PPO plan pays 60% of the URC charge for
eligible expenses out-of-network. You pay 40% coinsurance, plus any charges that exceed the
usual, reasonable and customary charges as determined by the claims administrator.

Note: If you live outside the United States, no network provider is available. Your benefit will be
paid with both in-network deductibles and out-of-pocket maximums and you will be subject to
the 20% coinsurance.

What is An Out-of-Pocket Maximum?

The out-of-pocket maximum is the most you pay during a benefit plan year. It is the sum of the
amounts you pay toward your deductible and for coinsurance. After you reach your out-of-
pocket maximum, your medical plan pays 100% of eligible expenses for the rest of the benefit
plan year.

Expenses credited toward your out-of-pocket maximum do not carry over from one benefit plan
year to the next. Each new benefit plan year, Blue Cross Blue Shield restores your out-of-
pocket maximum.

Under the Premium PPO plan, there are separate out-of-pocket maximums for in- and out-of-
network care.



                                                22
                                  Out of Pocket Maximums
                                    In-Network           Out-of-Network
                            7/1/05     7/1/06    7/1/07
              Individual     $600       $800     $1000       $4400
              Family        $1200      $1600     $2000       $8800

Note:
• Out-of-pocket maximum includes the deductible and the co-insurance
• When the sum of these two reaches $600/$800/$1000 for an individual, the plan pays 100%
   for that individual for the rest of the plan year
• When family members’ expenses, including employee’s, combine to meet
   $1200/$1600/$2000, the plan pays 100% for the rest of the plan year

In-network expenses count only toward the in-network maximum. Out-of-network expenses
count only toward the out-of-network maximum. That means, if you receive both in- and out-of-
network care under the Premium PPO plan, you may need to meet two out-of-pocket
maximums before the plan pays 100% of your eligible expenses.

Expenses That Do Not Count Toward Your Out-of-Pocket Maximum

These expenses do not apply toward your out-of-pocket maximum:
   • Copayments
   • Charges that exceed any benefit plan year maximum
   • Ineligible expenses, such as the cost of cosmetic surgery or experimental procedures
   • Charges for prescription drugs through Caremark
   • Any pre-certification penalties you incur
   • Penalties for out-of-network hospital visits
   • Expenses that exceed the URC charge, as determined by the plan administrator
   • Charges for mental health and substance abuse treatment

What is the Lifetime Maximum?

The lifetime maximum is the total amount the medical plan pays for each enrolled individual.
Every dollar the medical plan pays toward your medical expenses reduces your lifetime
maximum by the same amount.

The lifetime maximum applies to benefit payments combined for all the Vought Aircraft
Industries, Inc. health care programs since you first had coverage in a PPO plan. This amount
includes the medical plan, the prescription drug program, mental health and substance abuse
benefits, and vision and hearing benefits.

The lifetime maximum benefit under the Premium PPO plan is $8 million per person.

Annual Restoration

At the start of each benefit year, the Premium PPO plan restores all or a portion of your lifetime
maximum. The amount restored equals the amount paid by the carrier during the previous
benefit plan year – up to a maximum restoration of $25,000.




                                                23
Other Lifetime Maximums

Other lifetime maximum benefits that apply to the PPO plan includes $20,000 for infertility
services and $500 for wigs. A lifetime maximum of two chemical dependency rehabilitation
admissions, combined for in- and out-of-network treatment, also applies.

What is ‘Medically Necessary’?

The medical plan pays benefits for eligible expenses that are considered medically necessary
by the claims administrator. The claims administrator considers a treatment, service, or supply
as medically necessary if it is:
    • Ordered and approved by a licensed physician;
    • Reasonably required for the diagnosis or treatment of a medical symptom or condition;
    • A treatment that is economical, safe, and provided in a manner and setting consistent
        with generally accepted United States medical standards;
    • Not primarily for the convenience of the patient or the health care provider;
    • The most appropriate level of treatment, service, or supply that can be safely provided.
        (With respect to hospitalization, acute care as an inpatient is judged to be necessary
        based on the type of services the patient is receiving or the severity of the patient’s
        condition. It also means that safe and adequate care cannot be received as an
        outpatient or in a less intense medical setting.);
    • Not educational, vocational, experimental, or investigational in nature (except that for
        individuals with diabetes, the plan provides for education about diabetes); and
    • Not specifically excluded by the plan.

When you are hospitalized, your provider and the claims administrator determine how long your
hospital stay is medically necessary. Even though your physician or other health care provider
prescribes, orders, recommends, or approves a service, drug, treatment, or supply, it is not
automatically considered medically necessary. This rule applies even if the service or supply is
not listed in this guide as an ineligible expense. Consequently, pre-certification of expenses is
essential to determine eligibility for benefits.

Adult physicals, newborn baby care and childhood immunizations that you receive from a
network provider are considered medically necessary. Maternity hospital stays for mothers and
newborn children are considered medically necessary for at least 48 hours following a normal
vaginal delivery or 96 hours following a cesarean birth.

Out-of-network services and supplies provided to a newborn child are considered medically
necessary if they:
   • Meet all the requirements listed in the Eligible Medical Expenses section.
   • Are provided to treat a diagnosed sickness or injury (including a congenital defect or
       birth abnormality).

For mental health and substance abuse treatment to be considered medically necessary by the
claims administrator, the treatment must be:
    • Adequate and essential for the condition
    • Expected to improve the patient’s condition or level of functioning




                                               24
Emergency Care and Hospitalization

If you need emergency care:
     • Go immediately to the nearest hospital emergency room.
     • When you arrive, show your Blue Cross Blue Shield identification card.
     • If you need emergency treatment, call Blue Cross Blue Shield at 1-800-571-1041 within
        72 hours of receiving emergency treatment and you will receive in-network benefits. If
        you are unable to call, arrange to have someone – a friend, relative, physician or
        member of the hospital staff – call for you.

An emergency is defined as “urgently needed medical services to sustain life or to prevent
critical illness or injury.” Examples include: sudden and severe pain or injury, including obvious
fractures; sprains; chest pain in an adult; severe shortness of breath or difficulty breathing;
severe or prolonged bleeding; loss of consciousness; and convulsions.

Ambulance Service

Your medical plan covers ambulance service for emergency transportation to the nearest
hospital; for instance, if you have a heart attack. Afterwards, if necessary, you may be
transferred to another hospital that has a cardiac care unit. As long as the transfer is necessary
and not for patient convenience, cost of the second ambulance would be processed at the
appropriate benefit level provided by your plan.

Avoid a Penalty – Obtain Pre-Certification

You must obtain pre-certification from Blue Cross Blue Shield before you are admitted to a
hospital except in an emergency. Pre-certification is required for all non-emergency inpatient
procedures. If you do not pre-certify, you will pay a $500 penalty. (See process for pre-
certification later in this document.) The penalty is in addition to your benefit plan year
deductible or out-of-pocket maximum.

If you are admitted to an out-of-network hospital in a non-emergency, you pay a $500 penalty
in addition to your benefit plan year deductible. The penalty does not apply when you use an
out-of-network hospital for emergency room treatment, outpatient treatment or laboratory.

Before you are admitted to a hospital or when you are scheduled for inpatient surgery, you must
obtain pre-certification. Call Blue Cross Blue Shield at 1-800-571-1041 (also listed on the back
of your ID card). This rule applies to all the previously described procedures and care, whether
they are in- or out-of-network, except in an emergency.

Mandatory pre-certification helps manage medical costs by confirming the need for the following
situations:

   •   A non-emergency hospital stay
   •   Extension of a pre-certified hospital stay (When you pre-certify a hospital stay, Blue
       Cross Blue Shield authorizes a specific number of days in the hospital. If you need to
       extend your stay in the hospital, you must call Blue Cross Blue Shield to pre-certify the
       extension. This rule includes extended maternity stays beyond those described in the
       Eligible Medical Expenses section.)
   •   Skilled nursing facility care
   •   Private duty nursing


                                                25
   •   Home health care
   •   Hospice care
   •   Inpatient surgery

The Steps for Pre-Certification

To pre-certify a non-emergency hospital stay:
   • Call Blue Cross Blue Shield at least 72 hours before your scheduled hospital admission,
       or as soon as your physician suggests hospitalization. The telephone number to call for
       pre-certification is on the back of your ID card.
   • Obtain authorization from your physician for the recommended number of inpatient
       hospital days based on your specific diagnosis. If your physician recommends additional
       days, Blue Cross Blue Shield reviews the recommendation with your physician and, if
       appropriate, authorizes the additional days.

If your inpatient hospital stay is due to a mental health or substance abuse condition, call Value
Options – not Blue Cross Blue Shield – at 1-866-269-5800 for pre-certification.

Remember: pre-certification is your responsibility.

Case Management

Case management is an additional resource that helps coordinate and ensure the quality of
health care. Blue Cross Blue Shield’s case management program is designed to help if you or
an enrolled family member needs intensive medical care for an extended period of time. Case
management assigns nurses and physicians representing all clinical specialties who work with
the patient and the physician to meet the patient’s long-term medical needs.

Blue Cross Blue Shield refers you or your enrolled family members to the case management
program, depending on the severity of the diagnosis or expected length of hospital stay. If you
are referred, your Blue Cross Blue Shield case management team reviews your medical records
and considers your medical needs. The attending physician and hospital staff may be consulted
about your course of treatment.

Your Blue Cross Blue Shield case management team explores treatment alternatives that may
be available to you. Sometimes, these alternatives include treatment whose cost typically is
considered ineligible for reimbursement. Blue Cross Blue Shield reviews these situations case-
by-case and may approve payment.

The final decision on all medical care always remains with you, your family, and your physician.
If you/or your physician do not agree with the case manager’s recommendations for treatment
alternatives, you may continue your original course of treatment (or any other medical treatment
you choose). However, depending on the eligibility of your claims for the chosen medical
treatment, your medical plan may limit or deny payment of your expenses and, as a result, you
may pay more.

Urgent Care

Urgent care facilities provide urgently needed, routine treatment at times when your regular
physician is unavailable, such as evenings and weekends. In a few states, urgent care facilities
provide care only for conditions that will deteriorate if not treated immediately. At these



                                                26
facilities, your treatment is subject to the provisions of your medical plan. Call Blue Cross Blue
Shield at 1-888-979-4514 to determine how urgent care is handled in your state.

The Premium PPO plan pays 90% of eligible expenses incurred at in-network urgent care
facilities after you meet the benefit plan year deductible.

Eligible Medical Expenses

The Premium PPO plan pays expenses that are considered eligible, medically necessary, and
within the URC limits as determined by the claims administrator. You pay any deductibles,
copayments, coinsurance and penalties associated with eligible expenses. (If you have a
Flexible Spending Account and your provider accepts Master Card, you may be able to use
your debit card for your copay and avoid filing a claim for reimbursement of your costs.)

You also pay any expenses that are not eligible and all amounts that exceed URC limits.
Subject to those conditions, the medical plan pays benefits for these eligible services and
supplies for enrolled employees and eligible enrolled dependents:
   • Abortion
   • Allergy serum, when it is mixed by your physician and administered in the physician’s
       office (Caremark covers allergy serum prescriptions filled by your pharmacist.)
   • Ambulance service to a local facility for a life-threatening condition or a condition that
       could cause serious harm to your body
       (The medical plan also covers air ambulance service to the nearest appropriate facility
       when this service is medically necessary. There is no coverage under the medical plan
       for ambulance use when there is no emergency.)
   • Anesthesia and its administration
   • Treatment of attention deficit disorder (ADD), as defined by the American Psychiatric
       Association, including physician visits and related therapy
            ♦ ADD is covered under the medical plan administered by Blue Cross Blue Shield
               and the mental health and substance abuse benefits administered by Value
               Options. To speed the process of specialist or facility referrals and
               reimbursement of eligible expenses, you should seek treatment for ADD from
               Value Options first. Contact Value Options directly to arrange treatment for ADD.
   • Autologous chondrocyte (ACO) implantation surgery (joint replacement therapy)
   • Biological serum (such as vaccines and medicines, and other injectables), when it is
       mixed by your physician and administered in the physician’s office. Caremark covers
       biological serum prescriptions filled by your pharmacist.
   • Birth control: diaphragms (device and fitting), IUDs and Norplant (when procedure is
       performed in the doctor’s office)
   • Blood and blood plasma (except charges for the storage of your own blood)
   • Cardiac rehabilitation phases 1 and 2, when received as a hospital outpatient within
       three months after your discharge from the hospital for a heart-related condition
   • Chiropractic services performed by a doctor of chiropractic (D.C.)
   • Christian Science practitioner services
   • Cosmetic/reconstructive surgery and resulting implants to:
       ♦ Restore a bodily function
       ♦ Correct functionally significant congenital deformities
       ♦ Correct conditions resulting from scars, tumors, disease, or previous therapeutic
            processes
       ♦ Restore breasts in connection with a mastectomy, specifically:
                    Reconstruction of the breast on which the mastectomy was performed


                                                27
                  Surgery and reconstruction of the other breast to produce a symmetrical
                  appearance
                  Prostheses and treatment of physical complications for all stages of
                  mastectomy, including lymph edemas (swelling associated with the removal
                  of lymph nodes). (See the important notice that follows this subheading.)
•   Medically necessary surgery that results from a previous cosmetic surgery (Cosmetic
    surgery performed mainly to change a person’s appearance is not an eligible expense.)
•   Dental services to treat injuries to natural, rooted teeth (excluding damage to dental
    implants such as dentures, crowns, and bridges) resulting from an accident, including
    services provided by a physician, dentist or dental surgeon. (This benefit includes
    replacement of the teeth and any related x-rays.)
    ♦ For your expenses to be eligible, you must receive treatment within 12 months of the
         injury and you must remain enrolled in the Premium PPO plan at the time of the
         treatment.
•   Diagnostic X-ray and laboratory services, including charges for X-ray and laboratory
    service that a physician orders to diagnose an illness or injury
•   Pap smears and mammograms when medically necessary or necessary to support a
    diagnosis; otherwise, they are covered as preventive benefits
•   Dietary formulas for participants whose esophagus does not function and who require
    processed food with a feeding device, such as a feeding tube. (Expenses for dietary
    formulas are also eligible for those with a diagnosis of phenylketonuria [PK-U] or a
    similar disease.)
•   Durable medical equipment, including rental of equipment, such as a wheelchair,
    hospital bed, or oxygen equipment. (To help save money, Blue Cross Blue Shield may
    authorize the purchase of equipment that you need for an extended period of time. The
    medical plan also covers the repair and necessary maintenance of equipment if not
    provided under a manufacturer’s warranty or a purchase agreement.)
•   Educational expenses related to diabetes, when medically necessary and prescribed by
    a physician and approved by the claims administrator
•   Emergency room services for the treatment of emergencies. (Benefits for emergency
    room treatment are deemed to be in- or out-of-network depending on whether your visit
    is an emergency. They are not based on whether you visit a network facility. When your
    visit is for an emergency, you always receive in-network benefits. However, if your visit
    is not for an emergency, your benefits could be paid at the out-of-network level.)
    ♦ For in- and out-of-network care, the $50 copayment is waived if you are admitted to
         the hospital in conjunction with emergency room visit.
•   Hearing care
•   Hemodialysis
•   Heart pacemakers
•   Home health care services, including medical and nursing care (but not custodial care
    such as personal assistance with routine tasks)
•   Hospice care for terminally ill patients
•   Hospital or surgical center expenses, including inpatient and outpatient charges for:
    • Semiprivate room and board
    • Services and supplies for inpatient and outpatient services furnished by the hospital
         or surgical center for medical care, including:
         • Drugs and medicines administered in the hospital
         • Electrocardiograms and basal metabolism tests
         • Medical equipment
         • Newborn care
         • Operating rooms


                                           28
            • Oxygen and anesthesia materials
            • Recovery rooms
            • Treatment rooms
            • Use of blood transfusion and physiotherapy equipment
            • X-rays and laboratory tests.
            Except in a life-threatening emergency, you pay a $500 penalty if you are admitted to
            an out-of-network hospital. The $500 penalty applies only to out-of-network hospital
            admissions. It does not apply to emergency room treatment, outpatient treatment or
            laboratory services. Services from a professional (such as a physician, therapist or
            specialized nurse) are generally billed to you separately; they are not considered
            hospital charges and are not subject to the $500 penalty.
    • Human organ and tissue transplants only when approved by Blue Cross Blue Shield and
        when performed at a Blue Cross Blue Shield Center of Excellence. The medical plan
        also covers the donor’s charges and coordinates payment with the donor’s own plan.
    • Infertility services, including diagnostic services to determine the case of infertility, and
        medical procedures required to correct a physical condition causing infertility
        • The medical plan also covers impregnation procedures such as in vitro fertilization,
            artificial insemination, and gamete intra fallopian transfers (GIFT), as well as related
            services such as hormone therapy, ultrasound, and lab work.
        • The medical plan does not cover donor’s charges. Further, administrative fees
            related to non-medically necessary infertility services, such as egg and sperm donor
            search fees and travel expenses, also are not eligible.
        • The medical plan pays in-network benefits for fertility medications when prescribed
            for an infertility condition. In some cases, your physician may prescribe fertility
            medication for a condition unrelated to infertility. If so, Caremark – the prescription
            drug benefit administrator – covers the fertility medication.
        • Benefits for infertility treatment are subject to a $20,000 lifetime maximum for in-
            network and out-of-network services combined. After you reach the $20,000 lifetime
            maximum, your infertility coverage ends under the Vought Aircraft Industries, Inc.
            medical plan. The lifetime maximum includes reproductive technology, such as in
            vitro fertilization, and prescriptions to treat an infertility condition. (The lifetime
            maximum does not include fertility medications that are reimbursed through
            Caremark.)
    • Inhalation therapy
    • Mammography services
    • Mastectomy (see important notice that follows this subheading)
    • Maternity, including expenses for you or your enrolled spouse or child (see important
        notice that follows this subheading).
        Expenses for a newborn baby of a dependent child are eligible only if the newborn
        becomes an eligible dependent under the Vought Aircraft Industries, Inc. medical plan.
        Expenses for midwives are eligible only when services are pre-certified by the claims
        administrator. The medical plan pays out-of-network benefits for midwife services.
    • Medical and surgical supplies, such as:
        • Blood and blood plasma
        • Casts and splints
        • Ostomy supplies (available from medical supply stores)
        • Oxygen and rental of equipment for its administration – up to the purchase price
        • Surgical dressings
        • Trusses, braces, and crutches
•   Occupational therapy when medically necessary and provided by a licensed occupational
    therapist


                                                29
•   Physical and physiotherapy services, except maintenance physical therapy, as determined
    by the claims administrator. Eligible expenses include therapeutic treatment by a registered
    physiotherapist, when prescribed by a physician
•   Physicians’ services, including physicians’ fees for medical care or treatment, such as visits
    in the hospital, at home or in the physician’s office
•   Physician assistant services, if accepted medical practice in your state. To determine if
    services provided by physician assistants are eligible in your state, call Blue Cross Blue
    Shield at 1-888-979-4514.
•   Podiatry care (but not routine foot care)
•   Prescription drugs through Caremark
•   Preventive care, including immunizations, routine office visits, routine lab tests, and annual
    physical and well-woman exams. (The medical plan covers Pap smears, mammograms,
    colorectal screens and X-rays as preventive care, unless they are performed to support a
    diagnosis, in which case they are covered as a diagnostic service.)
    • Shots, pills, and vaccinations in preparation for travel outside the U.S. are considered
         preventive care and are subject to the benefit plan year maximum under your medical
         plan. You pay all costs above the benefit plan year maximum.
    • The Premium PPO plan covers adults for preventive care, with no deductible. The
         benefit year maximum is $400, combined, for in- and out-of-network care. Children
         through age 5 are covered without limit.
•   Private duty nursing services, including care provided by a nurse (R.N., L.P.N., or L.V.N.).
    The plan limits benefits to $1,000 per month. Pre-certification and case management is
    required.
•   Prosthetics and orthotics, e.g., artificial limbs, eyes and larynx.
•   Radiotherapy and chemotherapy services, including charges for treatment and related
    materials, equipment and facilities.
•   Skilled nursing facilities, including charges for room, board, and miscellaneous expenses
    related to the stay. (Your physician must recommend your admission. The medical plan
    pays benefits based on eligible expenses for a semiprivate hospital room and limit each stay
    to 60 days per condition. Pre-certification and case management are required.)
•   Speech therapy, including therapy by a qualified speech therapist, to:
    • Restore speech after a loss or impairment of a demonstrated previous ability to speak
         (except speech loss or impairment caused by a mental, psychoneurotic, or personality
         disorder).
    • Develop or improve speech after surgery to correct a defect that existed at birth and
         impaired, or would have impaired, the ability to speak.
•   Sterilization, including voluntary sterilization procedures such as tubal ligation and
    vasectomy
    • Charges by a physician for performing a surgical procedure and for the physician’s pre-
         operative and post-operative exams
    • Assistant surgeon's and/or anesthesiologist's charges for services required for the
         surgery
    • Charges for cutting, suturing, and treating burns, correcting fractures, reducing
         dislocation, and manipulating joints under general anesthesia
    • Charges for performing electro cauterization, tapping (paracentesis), applying plaster
         casts, performing voluntary sterilization, performing endoscopy, or injecting sclerosing
         solution
•   Temporomandibular joint (TMJ) syndrome, including medically necessary initial surgical
    consultation and surgical treatment of dysfunction of the temporomandibular joint. (The
    medical plan does not cover therapy [before or after surgery], appliances or the shortening



                                                30
    or lengthening of the maxilla or mandible for cosmetic purposes or for correction of
    malocclusion.)
•   Urgent care facility services
•   Vision care
•   Well-child care, including charges for routine checkups and immunizations at the physician's
    office for children through age 5
•   Weight loss prescriptions, but only with a diagnosis of morbid obesity
    • Surgical methods of weight reduction are eligible if morbid obesity is present after five
         years of unsuccessful attempts using nonsurgical methods. Surgical methods include
         vertical banded gastroplasty (stomach stapling) and gastric bypass surgery.
    • Other methods require individual consideration by the Blue Cross Blue Shield Medical
         Director.
•   Wigs, including the cost of a patient's initial wig, covered at 100% with no deductible (up to a
    lifetime maximum of $500) if:
         The hair loss is a result of alopecia, chemotherapy or radiation treatment, or other,
         similar conditions, and
    • The wig is recommended or prescribed by the patient's attending physician.

Important Notice About the Women’s Health and Cancer Rights Act
If you receive plan benefits in connection with a mastectomy, you are entitled to coverage for
the following under the plan:

    •   Reconstruction of the breast on which the mastectomy was performed

    •   Surgery and reconstruction of the other breast to produce a symmetrical appearance

    •   Prostheses and treatment for physical complications for all stages of a mastectomy,
        including lymphedemas (swelling associated with the removal of lymph nodes).
The plan will determine the manner of coverage in consultation with you and your attending
doctor. Coverage for breast reconstruction and related services will be subject to deductibles
and coinsurance amounts that are consistent with those that apply to other benefits under the
plan.

Statement of Rights Under the Newborns’ and Mothers’ Health Protection Act
Under federal law, the Company may not restrict benefits for the mother or newborn child to less
than:

    •   48 hours for any childbirth-related hospital stay following a vaginal delivery

    •   96 hours following a delivery by caesarian section.
However, the mother’s or newborn’s attending physician may discharge the mother or newborn
earlier than 48 hours (or 96 hours as applicable) after consulting with the mother.

Also, under federal law, the Company may not set the level of benefits or out-of-pocket costs so
that any later portion of the 48-hour (or 96-hour) stay is treated less favorably for the mother or
newborn than any earlier portion of the stay.

In addition, the Company may not, under federal law, require that a physician or other health
care provider obtain authorization to prescribe a length of stay of up to 48 hours (or 96 hours).
However, to use certain providers or facilities, or to reduce your out-of-pocket costs, you may be
required to obtain precertification.


                                                 31
Ineligible Medical Expenses

The Premium PPO plan limits or excludes some medical treatments, services, and supplies.
The following list provides some examples of items that are not eligible for reimbursement;
however, this list does not include all ineligible expenses.

If you do not find an expense listed under the Eligible Medical Expenses section, call Blue Cross
Blue Shield at 1-888-979-4514 to determine if it is eligible under your medical plan. Ineligible
treatments, services, and supplies include:
• The cost of acupuncture and acupressure treatment
• The cost of ambulance service for non-emergencies or patient convenience
• Expenses related to artificial organs - other than limbs, larynx, and eyes - including surgery
     and related expenses for any type of artificial organ transplant
• The cost of withdrawal or dependence-related care for caffeine or nicotine addiction,
     including prescription and nonprescription drugs
• Charges above the usual, reasonable, and customary (URC) limits
• Charges for a sickness or injury due to war or any act of war, or that occurs during military
     service
• Charges for an injury that occurs while the covered individual is committing a crime
• Charges for services, treatments, or supplies that are not medically necessary
• Charges for services that are not ordered by a physician for the diagnosis, care, or
     treatment of an illness or injury, except preventive or well-child care
• Charges that you are not legally required or obligated to pay, or charges that would not have
     been billed, such as free immunizations provided at a local clinic or drugstore
• The cost of comfort or convenience equipment or supplies, such as exercise and bathroom
     equipment, seat-lift chairs, air conditioners, humidifiers, dehumidifiers and purifiers, shoes or
     related corrective devices, spas, or computer "story boards" or "light talkers"
• Expenses related to cosmetic/reconstructive surgery, except if required:
     • Because of an accidental injury
     • To treat a condition that impairs the function of a body organ, including a congenital
         organ malformation of a child enrolled in the medical plan
     • To reconstruct a breast after a mastectomy
• Expenses related to court-ordered treatment, unless certified as medically or psychologically
     necessary
• Expenses related to custodial care or maintenance therapy, including care for conditions not
     typically responsive to treatment
• The cost of dental services, except those described under eligible expenses (This exclusion
     encompasses shortening or lengthening the maxilla or mandible for cosmetic purposes or
     correction of malocclusion.)
• Expenses related to educational programs for mental impairment or for developmental
     disorders such as cluttering and stuttering
• Expenses related to experimental or investigational treatment, services or supplies. Any of
     the following criteria may result in classification as experimental or investigational:
     • Requiring federal or other governmental body approval, such as drugs and devices that
         do not have unrestricted market approval from the Food and Drug Administration (FDA)
         or final approval from any other governmental body for use in treatment of a specified
         condition. (Any approval that is granted as an interim step in the regulatory process is
         not a substitute for final or unrestricted market approval.)




                                                 32
    •   Insufficient or inconclusive scientific evidence in peer-reviewed medical literature to
        permit the claims administrator's evaluation of the therapeutic value of the treatment,
        service or supply
    • Inconclusive evidence that the treatment, service or supply has a beneficial effect on
        health outcomes
    • Evidence that the treatment, service or supply is not as beneficial as any established
        alternatives
    • Insufficient information or inconclusive scientific evidence that, when used in a non-
        investigational setting, the treatment, service or supply has a beneficial effect on health
        outcomes and is as beneficial as any established alternatives
•   Foot treatment for:
    • Weak, strained, flat, unstable, or unbalanced feet, metatarsalgia, or bunions (except
        open-cutting operations)
    • Corns, calluses, or toenails, except the removal of nail roots and necessary services
        prescribed by a physician (M.D. or D.O.) to treat metabolic or peripheral-vascular
        disease
•   The cost of homeopathic or related treatment
•   The cost of treating any illness or injury related to employment that is covered under
    workers' compensation or similar laws
•   Expenses related to infertility administration fees that are not medically necessary, such as
    egg and sperm costs and donor search fees
•   Charges for massage therapy
•   The cost of care for the newborn child of an enrolled child, unless the newborn becomes an
    eligible dependent under Vought Aircraft flexible benefits
•   The cost of over-the-counter medication or dietary supplements that do not require a
    prescription by law
•   Expenses related to penalties under the medical plan for failure to comply with Blue Cross
    Blue Shield’s pre-certification procedures or for an out-of-network hospital stay
•   Expenses related to periodontal or periapical disease, or any condition other than a
    malignant tumor involving teeth, surrounding tissue or structure, except as described in
    eligible expenses. (These expenses may be eligible under your dental plan option. Refer to
    the Dental chapter of this guide for more information.)
•   Personal non-medical expenses, such as telephone and television charges while in a
    hospital
•   Expenses related to physical, occupational or speech therapy for maintenance purposes, as
    determined by the claims administrator
•   Fees for physician assistant services, if not accepted medical practice in your state.
    To determine if the services of physician assistants are eligible in your state, call Blue Cross
    Blue Shield at 1-888-979-4514
•   Physician charges for duplicating records
•   The cost of radial keratotomy (RK), photo refractive keratectomy (PRK), astigmatic
    keratectomy (AK), LASIK, or other similar surgical procedures to improve or correct vision
    problems
•   Expenses related to the reversal of voluntary sterilization
•   The cost of services furnished by a hospital or facility operated by the U.S. government or
    any authorized agency of the U.S. government or furnished at the expense of such
    government or agency unless payment is legally required
•   The cost of services or supplies that any school system provides as required by law
•   The cost of services or supplies provided by any Vought Aircraft Industries, Inc. (or
    subsidiary) Medical Department



                                                 33
•   Charges related to services or treatment rendered by you, your spouse or your child, or by
    your parent, parent-in-law, brother, sister, brother-in-law or sister-in-law
•   The cost of services received before coverage begins or after coverage ends
•   Expenses related to speech therapy to correct pre-speech deficiencies or to improve speech
    skills not fully developed, such as stuttering and developmental delay
•   Expenses related to transsexual surgery (sex-change operations), including counseling or
    therapy before or after the surgery
•   Expenses related to weight reduction treatment, unless medically necessary


Vision and Hearing Care
When you select the Premium PPO plan, you receive the Vought Aircraft Industries, Inc. vision
and hearing benefits. Blue Cross Blue Shield administers these benefits. There is no deductible
for these benefits and no network of providers. You can choose any licensed provider.

You pay for the cost of services and glasses or hearing aids and submit receipts for
reimbursement up to the annual maximum.

Vision Care

If you are enrolled for medical coverage, Vought provides a vision benefit for you and your
enrolled dependents at no cost to you. You may use any provider.

Your vision benefit is a maximum of $250 per year per covered person with no deductible. The
annual benefit includes:
   • One vision exam per person each benefit plan year
   • Two pairs of lenses (including contact lenses), disposable contact lenses (up to a one-
       year supply), and frames each benefit plan year
   • Sunglasses prescribed by a physician that are medically necessary and are not
       otherwise available without a prescription.

If you receive routine vision care from an optometrist or ophthalmologist, your care is covered
by the vision benefit. The medical plan covers eligible expenses for care from an
ophthalmologist to treat a disease or injury of the eye. (If you have a health care Flexible
Spending Account and your provider accepts Master Card, you may be able to use your debit
card for copays, coinsurance or deductibles.)

When you visit an optometrist, ophthalmologist, or eyeglasses manufacturer for a vision exam,
lenses, or frames, you pay the provider at the time you receive the services.

Then, you file a claim with Blue Cross Blue Shield for reimbursement of eligible expenses. Use
the standard BCBS claim form available on the Download Forms page of the Excel Web site.

Hearing Care

The hearing benefit pays up to $500 per ear each benefit plan year for eligible expenses for
each covered individual. The annual benefit includes:
   • One annual hearing exam per covered person
   • One hearing aid repair annually or
   • A new hearing aid every three benefit plan years.



                                               34
Hearing aid batteries are not covered.

When you visit a hearing care professional, you pay the provider when you receive the services.
Then, you file a claim with Blue Cross Blue Shield for reimbursement of eligible expenses. You
could choose an in-network audiologist and they would file the claim for you. (If you have a
health care Flexible Spending Account and your provider accepts Master Card, you may be able
to use your debit card for copays, coinsurance or deductibles.) The standard BCBS claim
form is available on the Download Forms page of the Excel Web site.

Blue Cross Blue Shield Claims Administration

Blue Cross Blue Shield is the claims administrator for your medical, surgical, vision, and hearing
benefits. BCBS Member Services is a critical link between you and the Blue Cross Blue Shield
network. Trained Blue Cross Blue Shield representatives answer the Member Services
customer service line. Call Member Services at 1-888-979-4514 to:
   • Obtain current provider information, including a provider's address, or whether a provider
        accepts new patients
   • Find out if there are Blue Cross Blue Shield network providers in a particular location
   • Check on features and procedures under the medical plan
   • Provide comments or feedback regarding a provider's performance
   • Ask questions about claims or reimbursements
   • Request claim forms
   • Ask for assistance in filing out-of-network claims (if you are not using a network provider)
   • Report lost ID cards and request new ones.

Filing Medical Claims

In most cases, you do not need to file a claim for health care reimbursements. When you
receive care from a network provider, he or she files your claim for you. You are responsible for
completing and submitting claim forms when you:
    • Use an out-of-network provider
    • Incur vision or hearing expenses.

You must submit claims that you incur during the benefit plan year within 12 months after the
benefit plan year ends. If you need a claim form or have questions about filing claims, call Blue
Cross Blue Shield at the toll-free telephone number listed on the back of your medical ID card.

If the provider does not file your claim, you need to do the following:
     • Complete a Blue Cross Blue Shield claim form and submit it to the address printed on
         the form
     • Attach the appropriate paperwork or itemized receipts (The claims administrator cannot
         accept canceled checks as a receipt.)
     • Attach an explanation of benefits (EOB) if you receive reimbursement from another plan,
         such as your spouse's plan
     • Write the group number and your Blue Cross Blue Shield identification number (which is
         a unique ID) on each claim form – even if the claim is for an enrolled family member
         (Both numbers are listed on your ID card.)
     • Indicate whether payment should be made to you or directly to your provider
     • Keep a copy of everything you send to Blue Cross Blue Shield




                                                35
If You Are Dissatisfied With the Resolution of Your Claim

If for any reason you are not satisfied with the resolution of your claim for medical expenses,
you can file a complaint with Blue Cross Blue Shield Member Services. Your complaint may
relate to quality of care, service, a denied claim, or any decision by Blue Cross Blue Shield.
You must exhaust all Blue Cross Blue Shield resolution options before filing an appeal with
Vought Aircraft Industries, the Plan Administrator.

Call Blue Cross Blue Shield Member Services at the toll-free telephone number listed on your ID
card. Always include your name, address, daytime telephone number, group number, and
member ID number in any correspondence with Member Services. To obtain the correct
mailing address, call the toll-free number on your ID card.

If you are not satisfied with Blue Cross Blue Shield’s response to your complaint, you may
appeal the decision within 180 days from the time you received the claim denial. For further
details about filing an appeal, see the General Plan Administration section of this document.

Prescription Drugs
The Premium PPO plan provides coverage through Caremark for medically necessary
prescription drugs. Caremark is the claims administrator for claims for prescription drug
expenses.

“Covered” drugs are those that are necessary for the treatment of a disease or illness and are
widely accepted as effective, appropriate, and essential – based on the recognized standards of
the medical community and approved by the claims administrator for reimbursement. In
addition, the drug therapy must be prescribed by a licensed physician and must be in
accordance with type, frequency, and duration-of-treatment guidelines of national medical,
research, and governmental agencies. Prescriptions are considered medically necessary when
they are prescribed in conjunction with a medically necessary service or supply. The fact that
your physician prescribes, approves, or recommends a drug does not make it medically
necessary. The claims administrator makes that determination.

The medical plan allows you to purchase medically necessary prescription drugs from:
   • Any Caremark participating pharmacy
   • The Caremark Mail Service Program

Your prescription drug benefit is based on where you purchase your prescriptions and whether
you purchase generic or brand name drugs. Prescription drug expenses count toward your
medical plan’s lifetime maximum but do not count toward your deductible or out-of-pocket
maximum.

Call your pharmacy and ask if it is a Caremark participating pharmacy. Or, call Caremark
directly at 1-866-623-1395 to find the pharmacy closest to you.

Generic vs. Brand Name Drugs

In general, generic drugs serve the same purpose as brand name drugs. However, generic
equivalents are not available for all brand name drugs. Generic drugs cost less than name
brand because the brand manufacturer paid the costs of research, development, and marketing
and must recoup these costs through the sales price.



                                                36
Retail Prescriptions

You can purchase up to a 30-day supply of prescription drugs at retail pharmacies. To receive
the highest benefit for retail prescriptions, go to a Caremark participating pharmacy.

A covered participant will only be allowed to fill three (3) prescriptions of the same medication,
listed on the Mandatory Drug List (MDL), from a retail pharmacy. Upon the fourth and
subsequent fills, the participants must have their MDL prescriptions filled through mail order to
avoid paying the full cost of the drug at retail.

To determine if you were prescribed a medication that is on the MDL, contact Caremark directly
at 1-866-623-1995.

If a covered participant continues to fill MDL prescriptions more than three (3) times at a
participating retail pharmacy instead of using mail order, they will be required to pay the entire
cost of the drug(s).

Note: Participants should continue to get all of their short-term medications (such as antibiotics)
at a participating retail pharmacy. They will only be responsible for the retail pharmacy co-
payment for short-term medications.

Mail Order Prescriptions

For eligible participants residing in the United States, the Caremark Mail Service Program
provides long-term and maintenance medications at a reasonable price. Maintenance
medications are drugs taken on a regular basis for chronic conditions such as high blood
pressure and diabetes.

The following chart provides an overview of your prescription drug benefits:
                    SUMMARY OF PRESCRIPTION DRUG BENEFITS
                                               Generic                      Brand
 Retail – Up to 30-day supply               $5 Minimum                  $25 Minimum
 Mail Order – 90-day supply                $10 Minimum                  $40 Minimum
Note: If the cost of the prescription drug is less than the minimum, you will pay 100% of the cost.

Information for Diabetics

The prescription drug benefit includes a special provision for diabetic kits. You get a 90-day
supply for one $40 copayment for a kit of supplies if:
     • Your physician lists all your diabetic supply requirements on one prescription, and
     • You order all the supplies at the same time through the Caremark Mail Service Program.
     • Each time you refill all or part of the kit, you pay another copayment. The kit includes
        these supplies:
        • Insulin
        • Alcohol wipes
        • Diagnostic strips
        • Lancets and syringes
If you need a glucose monitor, you can order one at no charge by calling Caremark at 1-800-
588-4456.




                                                 37
Appeal of a Claim Denial for Prescription Drug Benefits – Caremark

You may appeal any decision by the Caremark Claims Administrator that denies your claim or
reduces or terminates benefits under the Plan by filing a written request to the Plan
Administrator within 180 days after you receive notice of the decision of the Claims
Administrator. The claim appeal process is described in the General Plan Administration section
of this document. Before filing an action in a court of law appealing a benefits decision, you
must first exhaust all internal administrative appeal processes.


Mental Health and Substance Abuse Treatment
If you are enrolled in the Premium PPO plan, ValueOptions administers your mental health and
substance abuse benefits. The Value Options provider network is separate from the Blue Cross
Blue Shield network.

ValueOptions is experienced in managing confidential inpatient hospital and outpatient
counseling and therapy for mental health conditions and substance abuse. The nationwide
network of clinicians includes psychiatrists, psychologists, and independently licensed master's-
level therapists.

Medically Necessary

The Vought Aircraft Industries, Inc. mental health and substance abuse program pays for
medically necessary and appropriate mental health and substance abuse services and
treatments. For benefits to be considered medically necessary by the claims administrator, the
service or treatment must be:

  •   Adequate and essential for your condition
  •   Expected to improve your condition or level of functioning

The fact that your physician prescribes, orders, recommends, or approves a service or supply
does not make it medically or psychologically necessary. The claims administrator makes that
determination.

Pre-Approval is a Must!

Without pre-approval, the plan pays no benefits for mental health and substance abuse
services. Wherever you are, ValueOptions can help you find a provider. In addition, you must
contact ValueOptions for approval before treatment begins. If no Value Options provider is
available when you receive pre-approval, ValueOptions refers you to an out-of-network provider
and the mental health and substance abuse program pays in-network benefits.

When you need mental health or substance abuse treatment, first contact ValueOptions at 1-
866-269-5800 for approval – even if you do not plan to use a network provider. Your call is
confidential. No one at Vought Aircraft Industries, Inc. or its subsidiaries will be told about your
call or about any treatment you receive, unless you authorize the disclosure or the law requires
disclosure.

If you do not contact ValueOptions for pre-approval of in- or out-of-network care, the mental
health and substance abuse program pays no benefits except in an emergency situation.



                                                 38
Note: Remember, in an emergency, seek immediate care and call ValueOptions within 72
hours.

Receiving Care

Follow these steps to receive care through ValueOptions.

   •   Call ValueOptions at 1-866-269-5800 and identify yourself as a Vought Aircraft (or
       covered subsidiary) employee or enrolled family member
   •   Give the ValueOptions case manager your address, telephone number, the employee's
       Social Security number, and the name, sex, and birth date of the patient
   •   Discuss the situation with the ValueOptions case manager, who will refer you to a local
       ValueOptions network provider or to an EAP counselor
   •   Call to make an appointment with the network provider (or an out-of-network provider)
   •   Inform your provider that ValueOptions administers your mental health and substance
       abuse benefits
   •   Make sure your claim is properly filed. Network providers file claims for you. Out-of-
       network providers may ask you to pay expenses up front. In that case, you need to file a
       claim with ValueOptions for reimbursement. Claim forms are available from
       ValueOptions.

Emergency Mental Health or Substance Abuse Treatment

If you or your enrolled family member needs emergency mental health or substance abuse
treatment, call ValueOptions at 1-866-269-5800. An on-call case manager is available 24 hours
a day, seven days a week.

If you or an enrolled family member is hospitalized because of a mental health emergency and
is unable to pre-certify the admission, a family member, physician or friend should call Value
Options within 72 hours after the admission.

Once the hospitalized person becomes stable, Value Options may advise a transfer to a
network hospital to receive the highest level of benefit reimbursement.

Note: Treatment of medical emergencies related to alcoholism or substance abuse, such as
overdose, coma, shock, or a heart attack, is covered under the Premium PPO plan. File claims
for these expenses with Blue Cross Blue Shield.

Eligible Expenses – Mental Health and Substance Abuse Treatment

The Vought Aircraft Industries, Inc. mental health and substance abuse program pays for a wide
range of inpatient and outpatient services. The following mental health/substance abuse
expenses and services are covered:
• Charges for medically necessary licensed local ambulance service to or from the nearest
   hospital or approved qualified mental health/substance abuse treatment facility where the
   needed mental health treatment or evaluation can be provided, as authorized by Value
   Options.
   • Medically necessary outpatient charges at a hospital or approved qualified mental
       health/substance abuse treatment facility
• Semiprivate room and board charges, and medically necessary inpatient services and
   supplies at a hospital or qualified mental health/substance abuse treatment facility approved
   by ValueOptions.


                                              39
Value Options establishes who the qualified mental health/substance abuse treatment providers
are, within the lawful scope of the practice of:

   •   Psychiatrists
   •   Licensed or registered psychologists
   •   Licensed or registered psychotherapists
   •   Licensed or registered psychiatric social workers

Ineligible Expenses – Mental Health and Substance Abuse Treatment

Some mental health and substance abuse services and treatments are not eligible:
• Aversion therapy
• Services or treatment rendered by you, your spouse or your child, or by your parent, parent-
  in-law, brother, sister, brother-in-law or sister-in law
• Conditions resulting from:
  • Acts of war (declared or undeclared)
  • Insurrection
  • Atomic explosion
  • Other release of nuclear energy under any conditions (except when used solely as a
       medical treatment)
  • Counseling/therapy related to a sex change
  • Couples therapy, except when certified as a medically necessary part of the treatment
       plan of a spouse with a Diagnostic and Statistical Manual of Mental Disorders (DSM IV-
       TR or applicable later update) mental disorder that is covered under the mental health
       and substance program
  • Court-ordered psychiatric or substance abuse treatment, except when certified by Value
       Options as medically necessary
  • Custodial care
  • Educational rehabilitation or treatment of learning disabilities, regardless of the setting in
       which services are provided
  • Evaluations, consultations, or therapy for educational or professional training or for
       investigational purposes relating to employment
  • Experimental or investigational services or supplies. Any of the following criteria may be
       cause for classification as experimental or investigational:
       ♦ Lack of federal or other governmental body approval, such as drugs and devices that
           do not have unrestricted market approval from the Food and Drug Administration
           (FDA) or final approval from any other governmental body for use in treatment of a
           specified condition. Any approval that is granted as an interim step in the regulatory
           process is not a substitute for final or unrestricted market approval
       ♦ Insufficient or inconclusive scientific evidence in peer-reviewed medical literature to
           permit the plan's evaluation of the therapeutic value of the service or supply
       ♦ Inconclusive evidence that the service or supply has a beneficial effect on health
           outcomes
       ♦ Evidence that the service or supply is not as beneficial as any established
           alternatives
       ♦ Insufficient information or inconclusive scientific evidence that the service or supply,
           when used in a non-investigational setting, has a beneficial effect on health
           outcomes and is as beneficial as any established alternatives




                                               40
   •   Injuries or illnesses caused by the conduct or omission of a third party for which you
       have a claim for damages or relief, unless you provide Value Options with a lien against
       such claim for damages or relief
   •   Marriage counseling except through your EAP
   •   More than two inpatient admissions for substance abuse treatment at an in- or out-of-
       network facility
   •   Non-abstinence-based or nutritionally based treatment for substance abuse
   •   Prescription drugs; however, your prescription may be eligible under the Vought Aircraft
       prescription drug plan
   •   Private duty nursing, except when pre-approved by Value Options as medically
       necessary
   •   Psychological testing, except when pre-approved by Value Options as medically
       necessary
   •   Remedial education beyond evaluation and diagnosis of learning disabilities, education
       rehabilitation, academic education, and educational therapy for learning disabilities
   •   Services, supplies or treatment covered under the Premium PPO medical plan
   •   Services to treat conditions not attributable to a mental disorder but as additional
       conditions that may be a focus of clinical attention, such as V codes (i.e., those identified
       by the DSM IV-TR)
   •   Services, treatment or supplies provided as a result of any workers' compensation law or
       similar legislation
   •   Services, treatment or supplies obtained through, or required by, any governmental
       agency or program, whether federal, state, or any subdivision thereof (exclusive of
       Medicaid)
   •   Sex therapy programs
   •   Therapies that do not meet national standards for mental health professional practice,
       including – but not limited to – Erhard/The Forum, primal therapy, Rolfing, sensitivity
       training, bioenergetics therapy, and crystal healing therapy
   •   Treatment by any providers not pre-approved by the claims administrator
   •   Treatment for caffeine or nicotine addiction withdrawal or dependence
   •   Treatment for co-dependency
   •   Treatment for personal or professional growth, development, training, or professional
       certification
   •   Treatment of congenital and/or organic disorders (e.g., autism, mental retardation)
       except for associated treatable and acute behavioral manifestations
   •   Treatment or consultations provided by telephone

Appeal of a Claim Denial for Mental Health or Substance Abuse Benefits –
ValueOptions

You may appeal any decision by the ValueOptions Claims Administrator that denies your claim
or reduces or terminates benefits under the Plan by filing a written request to the Plan
Administrator within 180 days after you receive notice of the decision of the Claims
Administrator. The claim appeal process is described in the General Plan Administration section
of this document. Before filing an action in a court of law appealing a benefits decision, you
must first exhaust all internal administrative appeal processes.

Employee Assistance Program
The Employee Assistance Program is a professional and confidential counseling service and
referral program that is available to you and your immediate family members – free of charge.


                                                41
The EAP is administered by ValueOptions, and is available to all employees, whether or not
they are enrolled in the medical plan. You can use the EAP services even if you are not enrolled
in the Vought Aircraft Industries, Inc. Premium PPO medical plan.

EAP counselors are licensed mental health professionals who specialize in conducting
comprehensive assessments and short-term problem solving. They also have extensive
knowledge of community resources in your area.

Counselors are available to help you and your family members resolve personal issues or
problems before they affect your health, family, relationships, or job performance.

No one at Vought Aircraft Industries, Inc. is told of your call or about any treatment you receive
unless you authorize it or unless the law requires it.

The EAP can help you deal with:
   • Death of a loved one
   • Depression
   • Family problems
   • Financial matters through referrals
   • Legal matters through referrals
   • Relationship issues
   • Stress
   • Substance abuse
   • Work-related issues

Receiving Care
There are two ways you can receive care through the EAP:
   • Contact ValueOptions
       • Call ValueOptions at 1-866-269-5800, toll free, 24 hours a day, seven days a week
       • Identify yourself as a Vought Aircraft Industries, Inc. employee, the spouse of an
           employee, or other eligible family member; you may need to provide the employee’s
           Social Security number when you call
       • Discuss your concerns with the EAP counselor. The counselor helps you assess
           your situation, clarify the problem, and develop a plan of action. The plan of action
           could include:
           • Follow-up discussions with the EAP counselor (there is no limit to the number of
              telephone contacts you can make)
           • Referrals to a Value Options EAP affiliate in your community up to five in-person
              sessions for you and each of your eligible family members per benefit plan year
           • When needed, direct referrals to a resource available under your medical plan
   • Visit an on-site counselor - licensed therapists who can assist you with personal
       concerns, especially those that interfere with work performance.
   • You may self-refer to the EAP, or your supervisor may refer you. All meetings are
       confidential. For information regarding locations and appointments contact your
       worksite EAP representative through your Human Resources office.

There is never any cost to you for services provided directly by the EAP. However, there may be
costs for additional services recommended by the EAP.




                                                42
When Your Medical Coverage Ends
Coverage under the Medical Plan ends when the first of these events occurs:
   • You or your dependents are no longer eligible to participate in the Vought Aircraft
      medical plan
   • Vought Aircraft Industries, Inc. terminates the Vought Aircraft medical plan


You and your dependents may be eligible to continue medical coverage under certain
circumstances when coverage would otherwise end, as described in the Plan Administration
section under COBRA.

Non-Duplication of Benefits

You or your dependents may be covered by more than one group medical plan, such as the
Vought Aircraft Industries, Inc. medical plan and your spouse's employer's plan. In such an
event, the Vought Aircraft Industries, Inc. medical plan uses a non-duplication of benefits
provision to coordinate payments with the other plan to avoid double payment of a claim.
However, non-duplication of benefits does not apply to any private personal insurance,
TRICARE or school policies that you or an enrolled family member may have.

When Vought Aircraft Industries, Inc. is the secondary payor, the Vought Aircraft medical plan
makes up the difference between the amount the other plan pays and the benefit that otherwise
would be payable under the Vought Aircraft Premium PPO medical plan.

This provision ensures that payments from the other plan, plus payments from the Vought
Aircraft Industries, Inc. medical plan, do not exceed the amount Vought Aircraft Industries, Inc.
would have paid if there were no other coverage.

To calculate non-duplication of benefits, it is necessary to determine which plan is the primary
plan and which is the secondary plan. The primary plan pays benefits first. The secondary plan
pays benefits after the primary plan has paid.

If you are divorced, legally separated, or not married to your child's other parent and your child
is enrolled in both the Vought Aircraft Industries, Inc. medical plan and the other parent's
employer's plan, the plans pay in this order.
     • First, the plan of the parent awarded financial responsibility for the child's medical
        expenses by a court decree
     • Then, the plan of the parent with custody of the child
     • Then, the plan of the stepparent whose spouse has custody of the child
     • Then, the plan of the parent who does not have custody of the child.

If none of these rules determines the order of payment, the parent’s plan that has covered the
child the longest is the primary plan.

The following chart summarizes how the non-duplication of benefits provision works for married
plan participants:




                                                43
 NON-DUPLICATION OF BENEFITS IF YOU ARE MARRIED
 If medical expenses are for:         The Vought Aircraft Industries, Inc. plan pays:
 You (the employee)                   Primary
 Your child                           Primary if your birthday falls earlier in the year than
                                      the other parent’s birthday (If you and the other
                                      parent have the same birthday, the plan covering
                                      the parent longer pays benefits first.)
                                      Or, secondary if, based on the "birthday rule"
                                      described above, the other parent's plan is primary
 You or enrolled family members       Primary if you and/or they have COBRA coverage
                                      under another group medical plan
                                      Secondary if the other plan does not have a
                                      coordination-of-benefits provision
 Your spouse who is covered by        Secondary
 another employer’s plan as an active
 or former employee
 Your spouse who is a Vought retiree Primary

Special Situations
Third-Party Reimbursement
(Right of Subrogation)
If you or your dependent (the covered person) suffers an injury or illness caused by a wrongful
or negligent act of another person or entity giving rise to a claim of legal liability, and if benefits
are paid under this plan due to such injury or illness, the plan shall have the right to recover
such payments to the extent of the value of the benefits provided by the plan. The following
provisions govern the plan’s right of recovery:
The right extends to third parties and to the covered person's insurer and any other insurer that
covers injuries sustained by the covered person;
The plan may utilize all possible remedies, both legal and equitable, including subrogation,
restitution, constructive trust, and equitable lien, to recover funds; The plan may offset future
benefits to the extent required to provide for full recovery;
Recovery may be made from any funds paid and from any and all sources, including judgment,
settlement, and insurance;
The plan will have the right of first recovery, and recovery may be sought from any full or partial
recovery, notwithstanding the fact that the covered person has not been made whole; and
Attorney’s fees and all other litigation expenses are the sole responsibility of the covered
person.

The plan is not obligated to pay any benefits until the covered person has agreed and
acknowledged, in writing, that the plan has a right of recovery with respect to any amounts that
the covered person receives. As a further condition precedent to the plan's obligation to pay
any benefits, the covered person agrees to do the following:
    Agree in writing to reimburse the plan from any award or settlement the covered person
    receives;




                                                   44
   Promptly provide the claims administrator agent with all pertinent information regarding the
   cause of the injury or illness including whether there is any person or entity who may be
   legally liable;


   Include the full amount of any payments by the plan in any claim the covered person asserts
   for compensation and promptly notify the plan of any such claim;
   Do nothing to prejudice the plan’s rights under this provision, either before or after the need
   for services of benefits under the plan;
   Provide the plan with a lien to the extent of benefits paid. The lien may be filed with the
   persons whose act caused the injuries, his/her attorney, the covered person's attorney, or a
   court having jurisdiction of the covered person's liability claim; and
   Cooperate fully with the plan in asserting its subrogation and/or reimbursement rights
   against any person or entity, including supplying the information and executing any
   instrument or agreement reasonably necessary for that purpose.

The failure of the plan to insist upon any of the above requirements or the payment of benefits
by the plan before receiving any such information or documents described above shall not be
deemed a waiver of the plan's right to recover benefits paid. The covered person agrees to a
credit against payments to be made under the plan in the future equal to the amount of any
damages collected against a third party or under no fault automobile insurance, whether by
legal judgment, settlement or otherwise.

When You Become Eligible for Medicare As an Active Employee

Medicare Part B coverage is available on the first day of the month in which you:
     • Complete 25 months of disability
     • Complete 31 months of end-stage renal disease
     • Become age 65, whether you are retired or still working
If you plan to work past age 65, you can:
     • Apply for Medicare Part B when you become age 65, or
     • Wait until you retire to apply for Medicare Part B if you are enrolled in the Vought Aircraft
        Industries, Inc. medical plan. You are not obligated to enroll in Medicare Part B while you
        are an active employee.

At the time of your retirement, you will be issued a Medicare creditable coverage letter from
Vought. You will present the letter to Medicare, which will waive all penalties and waiting
periods and allow you to enroll in Medicare upon your retirement date.
If you have a disabled dependent who is drawing Social Security disability income, that
dependent is normally eligible for Medicare Part B after two years. Contact the Social Security
Administration for additional information.

End-Stage Renal Disease

If you are enrolled in Medicare Part B because you have end-stage renal disease, Vought
Aircraft Industries, Inc. pays primary for the first 30 months of your disease. Thereafter, Vought
Aircraft Industries, Inc. pays secondary to Medicare Part B. After 30 months, if you are still an
active employee, Vought Aircraft Industries, Inc. reimburses your Medicare Part B premium.




                                                45
If you or a covered dependent has been diagnosed with end stage renal disease and becomes
eligible for Medicare Part B, please notify the Vought Benefits Center.

If you are Disabled – Order of Payment

If you are disabled, the order in which the Vought Aircraft Industries, Inc. medical plan pays
benefits depends on whether you are enrolled as an employee or as a dependent:
• If you are a disabled employee, your Vought Aircraft Industries, Inc. medical plan pays
     secondary to Medicare Part B if all the following apply:
        • You no longer work because of your disability
        • You qualify for Social Security benefits because of a disability
        • You are eligible for Medicare Part B
        • You are not enrolled in another group health plan as an active employee (for
            example, if you are a dependent, you are not enrolled in your spouse’s employer's
            plan)

When you meet these criteria, any payments that the Vought Aircraft Industries, Inc. medical
plan makes are calculated as if you were enrolled in Medicare Part B, regardless of your actual
enrollment status.

If you are a disabled dependent, your Vought Aircraft Industries, Inc. medical plan pays primary
to Medicare Part B.


Qualified Medical Child Support Order
A qualified medical child support order (QMCSO) is an order or judgment from a state court or
administrative agency directing the plan administrator to cover a child for benefits under a health
care plan.

Here are a few examples of individuals who may be covered under a QMCSO:
   • A child born to a single parent
   • A child who is not claimed as a dependent on the parent's federal income tax return
   • A child who does not live with the parent.

If you are subject to an order, Vought Aircraft Industries, Inc. notifies you and each affected
child (or the child's representative) about the procedures that determine the validity of the order
and how it will be implemented.

Federal law provides that a medical child support order must meet certain form and content
requirements in order to be a QMCSO. After the Vought Aircraft Industries, Inc. legal
department verifies that an order is a QMCSO, Vought Aircraft Industries, Inc. enrolls the child
according to the terms of the order.




                                                46
Frequently Asked Questions
General Benefits

1. How do I obtain claim forms for Blue Cross Blue Shield, Caremark retail and
mail order and Value Options?

You can call the Vought Benefits Center at 1-866-689-5999 or download claim forms
from the Download Forms page of the Excel Web site.

2. What is the difference between in-network and out-of-network care?

Under the Premium PPO plan, there are two levels of benefits: in-network and out-of-
network. When you receive in-network care, the plan reimburses a higher percentage of
your bills. You pay a lower deductible and smaller coinsurance for in-network care.

Regardless of where you live, each time you or an enrolled family member needs
medical care, you can decide whether to use a health care provider who is part of the
Blue Cross Blue Shield network and receive in-network benefits. Or, you can use a
provider who is not part of the network and receive out-of-network benefits.

3. Am I responsible for ensuring I have chosen an in-network provider?

Yes. To find network providers, you can either call Blue Cross Blue Shield directly at
Member Services 1-888-979-4514 or look online at www.bcbsil.com. You can visit any
network physician, specialist or facility of your choice and receive in-network benefits.
However, it is your responsibility to be sure you are treated by network providers. Do not
assume that your physician referred you to a network provider.


4. What benefits do I receive when I need emergency treatment?

In a life-threatening emergency, you always receive in-network benefits, whether a
network or an out-of-network facility provides your treatment.

5. What does pre-certification mean?

Pre-certification is the claims administrator’s advance review of proposed hospital stays
or other predetermined services. Mandatory pre-certification confirms the need for
certain health care procedures and hospital admissions. It is designed to help manage
and contain medical costs.

6. If my employment with Vought Aircraft Industries, Inc. ends, when do my
medical benefits end?

Your benefits end at midnight on your last day of employment. If you are retiring, your
Vought Aircraft Industries, Inc. coverage ends on the date of your retirement. If you are
eligible for and elect retiree medical benefits, those benefits begin on the date of your
retirement.




                                                47
7. How do I reach the Vought Benefits Center?
Call toll-free at 1-866-689-5999 Monday through Thursday, 8 a.m. to 8 p.m. and on Friday from
8:00 a.m. to 4:30 p.m. Central time.

8. When do I receive insurance identification cards?

Soon after you enroll in the Vought Aircraft Industries, Inc. medical plan, you may receive an
identification card from Blue Cross Blue Shield for your medical and mental health and
substance abuse coverage. You will receive a separate card from Caremark for prescription
drug coverage.


Typically, you receive two cards. However, your name – not your covered dependents – may
appear on all cards. Your dependent(s) should present the card to medical providers and
pharmacies. If you need additional cards, call the customer service department at Blue Cross
Blue Shield or Caremark. The telephone numbers are available on the benefits Web site under
“Service Providers,” or you may call the Vought Benefits Center (see answer to question 1
above) and select your provider from the telephone menu.

9. Why do I need an identification card?

Your medical, dental and drug plan identification cards contain your group number and other
administrative information for you and your health care givers to use in accessing services and
filing claims. Present your card to your doctor or other health care provider when you seek
health care.

The card provides information about your eligibility, copayments, and the claims administrator’s
address for submitting claims. Generally, your Caremark pharmacist will need to see your ID
card to correctly process your prescription and file your claim electronically. If you have a health
care Flexible Spending Account and your pharmacy accepts Master Card, you may be able to
use your FSA debit card for your copay and avoid filing a claim for reimbursement of your costs.

If you find an error on your card or need a replacement, please call your carrier or the Vought
Benefits Center, toll-free at 1-866-689-5999 Monday through Thursday from 8 a.m. to 8 p.m.
and on Friday from 8 a.m. to 4:30 p.m.

10. What if I don’t have a new identification card when I need medical care?

If you are continuing in the same medical or dental plan, use the card you have. If you have
changed medical or dental plans or don’t have your old card, you may have to pay for services
at the time of your visit and submit a claim for reimbursement. In an emergency, seek
immediate care. At the earliest opportunity, but within 72 hours, call the BCBS customer service
number or ask someone to call on your behalf. If you need further assistance, call the Vought
Benefits Center.




                                                48
11. How do I add or drop dependents from my benefits plan?

If you gain or lose a dependent during the plan year, you may complete the Add/Change form
found under Employee on the Excel website and send it to the Vought Benefits Center or make
the change online. You may call the Benefits Center at 1-866-689-5999 and speak to a
representative for assistance.

You can add or drop a dependent to your coverage during the plan year only if you
experience a qualifying life status change such as marriage, divorce, birth or adoption of
a child, death of a dependent or change in student status. You may also add your
spouse if your spouse loses coverage under another employer’s plan. In most cases,
you must substantiate the change by providing the Vought Benefits Center with
applicable documents.


Vision and Hearing

12. How do I submit claims for vision or hearing care expenses?

When you visit an optometrist, ophthalmologist, or hearing care professional for exams
or appliances, you pay the provider at the time you receive the services. Then, you file a
claim with Blue Cross Blue Shield for reimbursement of eligible expenses. Use the
standard Blue Cross Blue Shield claim form for vision and hearing services.

For a supply of forms, call Blue Cross Blue Shield at 1-888-979-4514 or download and
print claim forms from the Download Forms page of the Excel Web site.

When you file your claim, include your itemized receipt and keep a copy for your files.

13. How can I make sure my medical visits to an ophthalmologist or
optometrist are not counted toward my $250 annual vision care maximum?

Your diagnosis determines whether the cost of the visit is applied to the $250 maximum
for vision care. If your visit is to either an ophthalmologist or an optometrist and the
diagnosis is routine, the visit is counted toward the $250 maximum. Non-routine
(medical) diagnoses that result in a medical claim do not apply to the $250 maximum.


Mental Health and Substance Abuse
14. I need to see a mental health care provider. What do I do?

When you need treatment for mental health or substance abuse, first contact Value
Options at 1-866-269-5800 for approval even if you do not plan to use a network
provider. If you do not contact Value Options for pre-approval of in- or out-of-network
care, your medical plan pays no benefits, except in an emergency.

15. What is the employee assistance program (EAP)?

The EAP is a confidential counseling and referral program that is available to you and
your immediate family members - free of charge. Counselors are available to help you


                                                49
and your family resolve personal issues or problems before they affect your health,
relationships, or job performance. You can use the EAP services even if you are not
enrolled in Vought Aircraft Industries, Inc. Premium PPO medical plan.

Prescription Drugs

16. What is the difference between generic and brand name prescription drugs?

In general, generic drugs serve the same purpose as brand name drugs. In most cases
they are less expensive. Generic equivalents are not available for all brand name drugs.

17. When I use the mail order prescription drug program, how long does it take
for my prescriptions to arrive?

You receive prescriptions within approximately 14 days from the date Caremark receives
your initial physician’s prescription unless Caremark has to contact your physician. For
additional refills of your maintenance medication, either call 1-866-623-1395 or visit
Caremark’s Web site at

                                   www.caremark.com


18. I take a maintenance medication and cannot wait 14 days for the mail order
prescription to arrive. What should I do?
Ask your physician for two prescriptions: one for a 30-day supply to fill immediately at a local
Caremark participating pharmacy and one for a 90-day supply to send to the Caremark Mail
Service Program.




                                                50
                             DENTAL PLAN
A Dental Plan with Options
For You and Your Family
The dental plan helps pay dental expenses for you and your eligible dependents.

Dental plan options available to you are:
   • Unicare (default coverage if you do not make any coverage election)
   • Delta Dental Care Plus (which includes orthodontia benefits)

The dental plan coverage options offered:
      • Employee Only
      • Employee + 1
      • Employee + 2 or more

Eligibility
All employees and dependents eligible for medical coverage are also eligible for dental
coverage. The Company pays for your dental coverage and provides it automatically through
Unicare for all eligible employees and their eligible dependents, unless you select to replace the
Unicare coverage with the Delta Dental coverage, which requires a contribution from you in
addition to what the Company pays.

The plan provides benefits for preventive care, as well as major dental care. Information about
covered and non-covered dental services follows.

What the Unicare Plan Pays
The dental plan pays 100% of usual, reasonable and customary charges for covered preventive
care, such as checkups and cleanings. For dependents under 19 years old, the plan pays 100%
of covered expenses for fluoride treatments, space maintainers, and sealants (no more often
than once every three years for any given permanent tooth). The maximum benefit payable for
dental care for each covered person during the plan year is $2,000.

Preventive dental care is limited to:
      •    Routine checkups and cleanings no more often than two (2) in a plan year and
      •    Fluoride treatments, space maintainers, and sealants for covered dependents under
           age 19. Sealants are covered no more than once every three years for any given
           permanent tooth.

Pre-Treatment Estimate of Benefits

For dental treatments likely to cost more than $300, your dentist should request a pre-
determination of benefits before beginning treatment. To make this request, your dentist should
complete a regular Unicare dental claim form with a diagnosis of the condition, the proposed




                                               51
course of treatment with itemized services, and the charges for each procedure. Dates of
service do not need to be included with the request for approval.

Unicare will review the proposed treatment for appropriateness and cost effectiveness and send
the dentist a predetermination of benefits, stating the approved costs for the procedures
recommended.

If less costly treatments are available, Unicare will inform you and your dentist in writing of
benefits that the dental plan option will pay. You and your dentist can then pursue any treatment
plan, with the understanding that Unicare will pay only for the least expensive but equally
effective procedure.

If you do not obtain a predetermination of benefits for any treatment costing more than $300,
your claim is reviewed after treatment and reimbursement may be less than you expect.

Emergency dental treatment does not require a pre-treatment estimate.

Extension of Benefits

If your dental coverage ends, you may extend your Unicare coverage for 30 days for the
following dental services, provided your dental plan option would otherwise have paid benefits:
     • For an appliance – or modification of an appliance – for which an impression was taken
        before your coverage ended
     • For a crown, bridge, or gold restoration for which the tooth was prepared before your
        coverage ended
For root canal therapy, provided the pulp chamber was opened before your coverage ended.

Covered Expenses

The Unicare plan pays a percentage of the cost of the following dental services and oral
surgery, including a physician's or dentist's services or X-ray exams for all procedures involving
one or more teeth, the tissue or structure around them, the alveolar process, or the gums.

The following services are paid at 75% of usual, reasonable and customary charges.

You are responsible for the remaining 25%:
       •  One full mouth X-ray, no more often than every three years unless a special need is
          shown
       •  Supplemental bitewing X-rays, no more often than two in a plan year
       •  Fillings, inlays, and crowns
       •  Treatment of periodontal and other diseases of the gums and tissues of the mouth
       •  Endodontics
       •  Extractions and oral surgery
       •  X-rays to diagnose a condition requiring treatment
       •  Anesthesia and antibiotics
       •  Crowns.

In addition, the Unicare plan pays:
    •   50% of covered expenses for dentures and bridges




                                                52
   •   For replacements if the existing denture or bridge cannot be repaired and is at least five
       years old - or if the existing denture is temporary and less than 12 months old. Dentures
       will be replaced with dentures unless a bridge is absolutely necessary.
   •   For adding teeth to dentures or bridges if required.

Your share of dental expenses is reimbursable from your Health Care Flexible Spending
Account.

Expenses Not Covered

The following dental services, supplies, and treatment are not covered under the Unicare Plan:
   •    Duplicate dental appliances, including the replacement of a lost, missing, or stolen
        dental appliance
   •    Education or training in, and supplies used for, dietary or nutritional counseling, personal
        oral hygiene, or dental plaque control
   •    Facings on pontics or crowns posterior to the second bicuspid
   •    Orthodontics and appliances or restorations to increase the vertical dimensions or
        restore occlusion
   •    Periodontal splinting of teeth except for provisional, introcoronal stabilization of mobile
        teeth
   •    Precision attachments except when they represent the sole method of completing a
        course of treatment
   •    Tooth implantation or transplantation and surgical insertion of fabricated implants.

Unicare Membership Services can be reached by dialing 1-800-234-9778.

What the Delta Dental Plan Pays
Diagnostic and preventive care                     100%
Annual deductible                                  Individual: $50
                                                   Family: $100
                                                   Does not apply to diagnostic and preventive
Basic dental services (e.g., fillings)             80%
Major dental services (e.g., dentures)             50%
Annual benefit limit                               $2,000 per person
Orthodontia                                        50% up to $2,000 per person (lifetime
                                                   maximum)


You contribute to the cost of this benefit with before-tax dollars. You can receive treatment from
any dentist although Delta Dental offers a network of member dentists who agree to charge you
fees that they negotiate with Delta. These dentists are called "Delta dentists." Call Delta Dental
by dialing 1-800-336-8264 to request network dentist information, or visit Delta's Web site at

                                     www.deltadentalins.com

and select the Dentist Directory. From that page, select the Premier Program for your location.

The following rules apply when you select the Delta Dental plan:
   • Your dentist must be practicing within the scope of his or her profession and furnishing
        services for which he or she is licensed. Dental charges must either be negotiated with
        Delta or be based on average fees for dentists in your area, as determined by Delta.


                                                53
   •   If you do not use a Delta network dentist, you are responsible for any charges that
       exceed reasonable and customary.
   •   When you visit a Delta dentist, charges are always within the negotiated fees with Delta
       dentists. You pay only your applicable coinsurance and deductible – nothing more for
       covered services – so you may pay less out of your own pocket for a Delta dentist’s
       services than for a non-network dentist.
   •   You do not file a claim form when you use a Delta dentist. Your dentist files your claims
       for you.

The Delta Dental Plan Deductible

A deductible is the amount you must pay each benefit plan year before the dental plan option
begins to pay benefits.

There is no deductible for diagnostic and preventive care under the Dental Care Plus option
since those services are paid at 100% of the negotiated fee or average fee.

For services other than preventive, the benefit plan year deductible is:
       • $50 per person or $100 per family for the Dental Care Plus option.

You can satisfy the family deductible with any combination of eligible expenses you and at least
one other family member incur during the benefit plan year. However, the maximum you can
count for any one family member is the amount of the dental plan’s individual deductible.

Covered Expenses

Once you meet your benefit plan year deductible, the plan pays a percentage of negotiated
fees. You pay the rest. Your share of the cost is called "coinsurance."

The dental plan administered by Delta Dental pays benefits for treatment necessary for good
dental health care that is within the plan limits. The plan does not pay benefits for cosmetic
dentistry or for any treatment more costly or more extensive than needed. If two or more dental
services are appropriate for a treatment, the dental plan pays benefits on the basis of the least
expensive service expected to produce a professionally satisfactory result, for example,
amalgam (metal) vs. gold fillings.


Average Fees Vs. Negotiated Fees

Under the plan administered by Delta Dental, average fees apply only when you use a dentist
who does not participate in the Delta Dental network. Delta dentists charge Delta patients only
the negotiated fees. For example, when you use a Delta dentist, you pay only the applicable
deductible and coinsurance for eligible expenses.

The Dental Care Plus Option

The plan pays 100% of the negotiated fee for diagnostic and preventive services from Delta
dentists. These services include up to two cleanings and bite-wing X-rays each benefit plan
year. You pay no deductible for these services.

After you pay the benefit plan year deductible - $50 per person or $100 per family - the option
pays:
• 80% of the negotiated fee for basic dental services, such as fillings and extractions, and


                                               54
•   50% of the negotiated fee for major dental services, such as bridges and dentures.

You pay any remaining charges. You also pay any expenses that exceed the average fee for
dentists in your area when you use a dentist who is not in the Delta Dental network.

The most the option pays during the benefit plan year is $2,000 per covered individual.

• The Dental Care Plus option also covers orthodontic care at 50% of either the Delta dentist's
negotiated fee or the average fee when visiting an out-of-network dentist for orthodontic care,
up to a lifetime maximum of $2,000 per person. (This amount is in addition to the $2,000 per
person benefit plan year maximum.)

Eligible Expenses

The Dental Care Plus plan includes coverage for diagnostic and preventive care, basic services,
and major care, plus orthodontic services. The following is a description of each of these eligible
expenses.

Diagnostic and Preventive Care –
No deductible for the following:

    •   Biopsy tissue examination
    •   X-rays
        • Bitewing X-rays – Includes one set every six months for children to age 18, and one
            set every benefit plan year for adults age 18 and older
        • Full mouth X-ray – one set every three years unless a special need is shown

    Note: Benefits will not be paid for a full-mouth X-ray and bitewing X-rays for an adult in the
    same benefit plan year.

    •   Emergency treatment – Includes relief of dental pain when the dental plan option pays
        no other benefit other than X-rays
    •   Fluoride treatment – Includes up to two treatments in a benefit plan year for children
        under age 14.
    •   Office visits and specialist consultations – Only the first two oral examinations, including
        office visits for observation and specialist consultations, or combination thereof, are
        covered benefits during a plan year while you are eligible under any Delta program
    •   Space maintainers for children under age 12, once every five years
    •   Teeth cleaning (prophylaxis) – Includes up to two in a benefit plan year

Basic Services –
Deductible applies for the following:

    •   Anesthesia – general anesthesia, nitrous oxide or IV sedation given by a dentist for
        covered oral surgery, periodontics, fractures, and dislocations
    •   Crowns, jackets, and cast restorations – limited to once every five years per tooth
           The dental plan option covers this treatment for cavities that cannot be restored with
           amalgam, synthetic, plastic, or resin fillings. A broken tooth is also covered. A tooth
           worn down by day-to-day wear is not covered.
    •   Drugs - includes antibiotic injections and other drugs administered or ordered by a
        dentist. If your dentist writes a prescription for you, take the prescription to your
        pharmacy and fill it as you would any other health care prescription


                                                 55
    •   Endodontics - includes treatment of tooth pulp, such as root canals and other endodontic
        treatments
    •   Oral surgery - includes extractions of one or more teeth, cutting procedures in the
        mouth, and treatment of fractures and dislocations of the jaw
    •   Periodontics - includes deep cleaning and scaling, treatment of disease of the gums,
        mouth tissue, and bones supporting teeth. Periodontal root planing (limited to one
        quadrant per 24-month period). Gingevectomy, gingeval curretage, muco gingeval
        surgery, osseous surgery and osseous grafts as part of osseous surgery (limited to once
        every 36 months)
    •   Restorative (fillings) - includes amalgam, synthetic, plastic, or resin fillings for treatment
        of cavities (decay). Direct composite (resin) restorations are the only benefits available
        on anterior teeth and the facial surface of bicuspids. Any other posterior direct composite
        (resin) restorations are optional services and Delta's payment is limited to the cost of the
        equivalent amalgam restorations
    •   Sealants - limited to once every three benefit plan years for children under age 14.
        Includes topically applied acrylic, plastics, or composite material applied to permanent
        posterior molars to seal teeth and prevent decay

Major Care – Deductible Applies

    •   Prosthodontics - limited to once every five years. Construction or repair of fixed bridges,
        partial dentures, and complete dentures if provided to replace missing natural teeth

Orthodontic Services –
Deductible Applies

•   Bands
•   Braces
•   Correction of malocclusion
•   Orthodontic appliances
    • Services for strengthening teeth

Maximum Benefits

    •   The Dental Care Plus option benefit plan year maximum benefit is $2,000 per person
        (not including orthodontics).

If you have coverage under more than one dental plan, remember to inform your dentist of all
programs under which you have dental coverage and have him or her complete the dual
coverage portion of the Attending Dentist's Statement. This process helps ensure that you
receive all the benefits to which you are entitled. For more information, contact the Delta Dental
Customer and Member Service Department at 1-800-336-8264.


Predetermination of Benefits

For dental treatments likely to cost more than $300, your dentist should request a pre-
determination of benefits before beginning treatment. To make this request, your dentist should
complete a regular Delta Dental claim form with a diagnosis of the condition, the proposed
course of treatment with itemized services, and the charges for each procedure. Dates of
service do not need to be included with the request for approval.



                                                 56
Delta Dental will review the proposed treatment for appropriateness and cost effectiveness and
send the dentist a predetermination of benefits, stating the Delta Dental approved costs for the
procedures recommended.

If less costly treatments are available, Delta Dental will inform you and your dentist in writing of
benefits that the dental plan option will pay. You and your dentist can then pursue any treatment
plan, with the understanding that Delta will pay only for the least expensive but equally effective
procedure.

If you do not obtain a predetermination of benefits for any treatment costing more than $300,
your claim is reviewed after treatment and reimbursement may be less than you expect.

Emergency dental treatment does not require a pre-treatment estimate.

Extension of Benefits

If your dental coverage ends, you may extend your Delta Dental coverage for 30 days for the
following dental services, provided your dental plan option would otherwise have paid benefits:
     • For an appliance – or modification of an appliance – for which an impression was taken
        before your coverage ended
     • For a crown, bridge, or gold restoration for which the tooth was prepared before your
        coverage ended
     • For root canal therapy, provided the pulp chamber was opened before your coverage
        ended.

Ineligible Expenses

Ineligible services, supplies, and expenses include but are not limited to:
    • Charges by any hospital or other surgical or treatment facility and any additional fees
        charged by the dentist for treatment in any such facility
    • Crowns, jackets, and cast restorations used to treat cavities that could be restored with
        amalgam, synthetic, plastic, or resin fillings
    • Crowns, jackets, and cast restorations to replace a tooth more than once every five
        years.
    • Diagnostic photos
    • Full-mouth X-rays for adults within the same benefit plan year as bite wing X-rays
    • Applications of fluoride or other anticavity substance to adult teeth
    • Experimental procedures, techniques, or materials that are used by some dentists but
        have not received the full approval of government, scientific, or dental committees.
        Procedures remain experimental until studies are completed under scientific conditions
        and published in scientific literature and until they become part of what is known as
        "generally accepted dental practice"
    • Grafting of tissue from outside the mouth to tissue inside the mouth (extraoral grafts)
    • Implants (material implanted into bones or soft tissue) or the removal of implants. If
        implants are provided with a covered prosthodontic appliance, Delta Dental allows the
        cost of a standard partial or complete denture toward the cost of the implants and the
        prosthodontic appliances
    • Oral examinations when a dentist usually does not charge for this procedure and does
        not have a fee on file with Delta Dental for this procedure
    • Orthodontic services, unless you are enrolled in the Delta Dental Care Plus option
    • Pulp vitality test


                                                57
   •   Postoperative examinations, the removal of stitches, or any other procedure included in
       the cost of surgery
   •   Repair or replacement of a sealant on any tooth within three years of its application
   •   Replacement of prosthodontic appliances more than once every five years – unless
       Delta determines extensive loss of the remaining teeth (or a change in supporting
       tissues) made the existing appliance unsatisfactory
   •   Services for any disturbance of the jaw joints (temporomandibular joint or "TMJ"
       disorders) or associated muscles, nerves, or tissues. These services may be covered
       under your Vought Aircraft Industries, Inc. medical plan
   •   Services for cosmetic purposes or for conditions that are a result of heredity or
       developmental defects, such as cleft palate, upper and lower jaw malformations,
       congenitally missing teeth, and teeth that are discolored or lacking enamel
   •   Services for injuries covered by workers' compensation or employer's liability laws, or
       services paid for by a federal, state, or local government agency – except Medi-Cal or
       Medicaid benefits
   •   Services performed by someone other than a dentist, except where performed by a
       qualified technician under the direction of a dentist
   •   Services that are furnished without cost when there is no dental coverage
   •   Services started before the participant became covered by the Vought Aircraft
       Industries, Inc. dental plan
   •   Specialized techniques involving precision attachments, personalization or
       characterization, and additional charges for adjustments within six months of the
       installation of prosthetic appliances
   •   Temporary dentures, if billed as a separate item
   •   Treatment that restores worn tooth structure, rebuilds or maintains chewing surfaces that
       are damaged because teeth are out of alignment or occlusion, or stabilizes the teeth,
       such as equilibration and periodontal splinting


Filing Delta Dental Claims

Delta dentists file your claims for you. When visiting your dentist, show your identification card
and verify that the provider files the claim with Delta Dental.

If you use a non-participating Delta dentist, you must file a claim form with Delta Dental. Claims
must be submitted with receipts, bills, or an explanation of benefits (EOB) for the expense.
You must submit claims that occur during the benefit plan year within six months after the
benefit plan year ends. Dental claim forms are available from your local Vought Aircraft
Industries, Inc. Benefits Services office or the Vought Benefits Center, or you can download the
forms from the Download Forms section on the Excel Web site.

If You Have Other Dental Coverage

You and your dependents may be covered by more than one group dental plan, such as the
Vought Aircraft Industries, Inc. dental plan and your spouse's employer's plan. In such
instances, the benefits you receive under your Vought Aircraft Industries, Inc. dental plan option
will be coordinated with benefits you receive from other plans. When the Vought Aircraft
Industries, Inc. dental plan option is the secondary payor, the benefits from other plans are
taken into account and you can receive payment up to 100% of your eligible expenses from
both plans combined. This provision prevents double payments of benefits.




                                                 58
For example, assume you receive dental services to fill a cavity, and your eligible expenses total
$100. Also assume the primary plan pays 80% (or $80) of eligible expenses for this service and
your Vought Aircraft Industries, Inc. dental plan option - the secondary plan - typically pays 80%
of eligible expenses. In that case, since payment cannot exceed 100% of the fees charged, your
Vought Aircraft Industries, Inc. dental plan option pays only the remaining $20 and you pay
nothing.




                                               59
Frequently Asked Questions – Dental Plans

1. Am I required to visit a Delta dentist to receive reimbursement of my dental
   expenses?
No, if you are enrolled in Delta Dental, you can visit any dentist. However, the plan pays
more when you receive care from a Delta dentist.

2. What are the advantages of receiving care from a Delta dentist?
•   Delta dentists agree to charge Delta patients their lowest fees
•   Delta negotiates fees with dentists, so there are no unexpected out-of-pocket charges
•   Delta pays Delta dentists directly; you do not have to pay the bill and wait for reimbursement
•   There is no balance billing; Delta dentists charge only the amount that Delta and the dentist
    have agreed upon
•   You have no claims hassles; Delta dentists submit your claims

3. How do I find a Delta dentist?
Call Delta's toll-free directory service at 1-800-4-AREA-DR (1-800-427-3237) for a list of
Delta dentists in your area. Approximately two-thirds of all dentists in the United States
belong to the Delta Dental network.

4. Under the Delta Dental plan options, do my benefits change if I move to another
   state?
No, your benefits are the same regardless of where you live in the United States. Even if
your dependent child attends school in a different state, benefits for you and your
enrolled family members are the same.

5. What if I have a problem with the treatment that a Delta dentist provides?
When a dentist signs a contract to join the Delta Dental network, he or she promises to
provide care that meets professional quality standards. If you experience a problem that
your dentist cannot correct, call Delta Dental. Delta Dental often can resolve problems
quickly.

6. Do I submit a claim for reimbursement under the Delta dental plan options?
Delta dentists submit any necessary paperwork for you. However, if you visit an out-of-
network dentist, you may be responsible for submitting the claim. The address for
sending claims is:
       Delta Dental Insurance Company
       P.O. Box 1809
       Alpharetta, GA 30023-1809

7. Is there a special claim form for the Delta dental plan options?
No, Delta Dental accepts any standard claim form. Most dental offices have a form on
their office computer.

8. How can I be sure I can afford the treatment my dentist recommends under the Delta
   dental plan options?
Your dentist can send your treatment plan to Delta Dental before treatment begins. Then, Delta
informs your dentist of your share of the cost. This free service is called “predetermination of
benefits.”



                                                60
       FLEXIBLE SPENDING ACCOUNTS
Flexible Spending Accounts Offer Tax Advantages

For out-of-pocket health care
   and dependent day care costs

Flexible spending accounts let you pay certain health and dependent care expenses with tax-
free dollars. Because you don't pay taxes on these dollars, you have more money to use for
these expenses.

Through payroll deductions, you can set aside money – before taxes are withheld from your
income - to cover eligible health care and dependent care expenses. Your money is deposited
in a special account from which you withdraw money to reimburse yourself for eligible
expenses. (These accounts do not pay interest on your deposits.)

You have two Flexible Spending Account options:
The Health Care Flexible Spending Account helps you save money on your out-of-pocket
medical, dental, vision and hearing expenses.
   The Dependent Care Flexible Spending Account helps reduce the after-tax cost of your
   dependent care expenses. See the following descriptions of each account.

You can enroll in one or both accounts when you are hired, within 60 days of a qualified change
in status, or during the Annual Enrollment period. You also can choose not to participate.

Contribute to One or Both Accounts

You can contribute as little as $1 each week ($52 each year) to one or both Flexible Spending
Accounts. The most you can contribute is the smallest of the following:

   •   $96 each week ($4,992 each year)
   •   Half your annual salary
   •   Your annual taxable income if you earn less than $4,992

Additional limits may apply to the Dependent Care Flexible Spending Account if you are
married.

When you open an account in the middle of the benefit plan year, your maximum contribution is
the weekly maximum ($96) multiplied by the number of weekly pay periods left in the benefit
plan year. For example, you have a qualified change in status effective February 1, and you
enroll in the Health Care Flexible Spending Account, your participation in the account will
continue for five months (21 weeks) until June 30. Your maximum contribution to each account
is $96 each week for 21 weeks, for a total of $2,016.

How the accounts work

If you choose to participate, you decide how much money to set aside in each account, and you
can make before-tax contributions from your pay. The amount you select is deducted
automatically from your paycheck each week. The money then is credited to an account in your


                                              61
name. When you enroll, you should carefully estimate your expenses for the coming plan year.
Why? Because IRS rules say you:

   •   Cannot transfer money from one Flexible Spending Account to another
   •   Cannot change the set amounts you choose to contribute during the benefit plan year,
       unless you have a qualified change in status
   •   Will lose your unused account balances at the end of the benefit plan year
   •   Will lose your unused account balances if you leave Vought Aircraft in midyear for any
       reason (unless you elect to continue coverage through COBRA)
       (However, you can submit a claim for reimbursement of expenses that you incur before
       leaving Vought Aircraft.)
   •   Cannot file for an income tax deduction or tax credit for expenses reimbursed through
       the Flexible Spending Accounts.

How you save money

Your spending account contributions reduce your taxable income. That means the amount you
contribute is not subject to federal income tax, Social Security tax, or most state and local
income taxes. Your reimbursements for eligible expenses literally are tax-free; you will not be
taxed at a later date.

Your tax savings will depend on your household income, your tax filing status, and your eligible
expenses. You may want to consult your tax advisor on any questions.

During the benefit plan year, you can use the money in your accounts to reimburse yourself
when you pay an eligible expense. Simply send your claim form and supporting documents (via
mail or fax) to the claims administrator. Forms also are available from the Download Forms
page on the Excel Web site or the Vought Benefits Center at 1-866-689-5999.


Note: It is important to weigh your cash flow needs against the tax benefits you will receive from
enrolling in an FSA. Remember that you will pay for dependent care services or health care
services out of your pocket at the same time your income is reduced by your FSA payroll
deductions. Those out-of-pocket expenses, together with the payroll deductions, can create a
drain on your cash until you build up a FSA balance sufficient to cover the amount to be
reimbursed.


FSA Debit Card

The Flexible Spending Account debit card allows you to use pre-tax dollars from your income to
pay for qualified out-of-pocket health care expenses and dependent day care expenses and
avoid filing a claim for reimbursement.
The FSA debit card, available through the FSA administrator PayFlex, automates the process of
paying for eligible expenses. You can use the card wherever Master Card is accepted – from
doctor and dental offices to pharmacies and vision services, to your day care center.
If you or your dependents are enrolled in more than one health plan (such as your plan and your
spouse's plan or Medicare), you first have to submit your expenses to those plans. After you
receive reimbursement from all your health plans, you can submit the balance of your eligible
expenses for reimbursement under the Health Care Flexible Spending Account. Please include
the EOB from both plans with your claim.


                                               62
If, instead of using the debit card, you submit paper claims, you should receive your
reimbursement check and a statement of your account balance within six weeks. If you want
your reimbursements deposited in your bank account through electronic funds transfer, you may
request that service from PayFlex.
Forms also are available from the Excel Web site at
                                http://benefits.voughtaircraft.com
or the Vought Benefits Center. Call 1-866-689-5999 between 8 a.m. and 8 p.m., Central time,
Monday through Thursday, or until 4:30 p.m. on Friday.

By mail, submit your claims to:

       PayFlex Systems, USA, Inc.
       Flex Dept.
       P.O. Box 3039
       Omaha, NE 68103-3039
       Phone: (402) 345-0666
PayFlex Info Line: 1-800-284-4885

By fax to:
        (402) 231-4310 (No cover page is required, but on the first page, indicate how many
        pages you are sending.)

Visit the PayFlex Web site at www.mypayflex.com for more information.


Reimbursement Process

The reimbursement process is different for each type of Flexible Spending Account. Here is a
description of each process.

Health Care Flexible Spending Account

You can avoid filing claims for reimbursement for your copays for doctor and dental visits,
prescription drugs, and eligible medical services and supplies by using your FSA debit card. It
is accepted for these expenses at most locations where MasterCard is accepted. Your FSA
account is debited for the amount of the service or applied when you use the card to pay for
eligible services and supplies.

If you do not use the FSA debit card, submit your completed FSA claim form to the claims
administrator with an itemized bill, receipt, or Explanation of Benefits (EOB) for the eligible
expenses to receive reimbursement from your FSA account balance.

You can submit health care expenses and receive reimbursement for up to the total you will
contribute for the entire year, less any reimbursements that have already been paid. Your
future FSA contributions will pay off any deficit in your account.




                                                 63
Dependent Care Flexible Spending Account

You can be reimbursed for eligible expenses up to the balance in your dependent care account
at the time you use your debit card or your claim is processed. If you have enough money in
your account, you can pay with your debit card if your dependent child care center accepts
Master Card. If your balance is insufficient, your debit card transaction will be rejected.

If you file a paper claim, you will be reimbursed in full or up to the amount of your dependent
care account balance. Any remainder of your claim will be paid automatically after you make
additional payroll contributions to your account.

To file a paper claim, submit your completed dependent care Flexible Spending Account claim
form to the PayFlex. Include a bill that shows your provider's Social Security or tax identification
number.

For reimbursement of the cost of dependent care provided by your child's school, day care must
be shown as a separate item on the tuition bill. Tuition for children in kindergarten or above is
not an eligible expense.

Checklist for filing claims

Each time you submit your health or dependent care claims, use this checklist to ensure your
paperwork is complete and speed reimbursement of your eligible expenses.

__I have already incurred my eligible expenses
__I incurred my eligible expenses after I began participating in the plan
__I incurred my expenses before I stopped participating in the plan
__I included a receipt from my health care or dependent care provider that shows the:
         • Year, month, and day services were provided
         • Type of services provided (i.e., dependent care or type of health care)
         • Name of the service provider
          • Cost of the services
          • Dependent care provider’s tax identification number or Social Security number
__I was not reimbursed for these expenses under a health plan or another Flexible Spending
   Account
__If I received partial reimbursement of these expenses under a health plan, I enclosed a copy
  of the explanation of benefits (EOB)
__I have fully completed the claim form, signed it and dated it.

Changing Your Selections

If your family status changes during the benefit plan year, you can enroll in the Flexible
Spending Accounts or change the amounts you contribute. That is the only time you can make a
change except during Annual Enrollment. See examples of a qualified change in status in that
section of this plan summary.

You have 60 days after a qualified change in status to enroll or to change your existing
selection. The change you make must relate directly to your change in status, and you will have
to submit documentation of the event. For example, if you marry and wish to increase your
contribution to the plan, you must submit a copy of your marriage license along with your
election form.


                                                 64
At the time of a qualified change in status, you may have a negative balance in your health care
Flexible Spending Account. A negative balance occurs when you contribute less money to your
account than you receive in reimbursements. In that case, any changes you make to your
contributions must allow you to repay the negative balance by the end of the benefit plan year.

Health Care Flexible Spending Account

Spend to the End!

Is the June 30 deadline approaching and you still have money in your account?
Remember, your health care plan copayments, deductible, and coinsurances are eligible
expenses under the Flexible Spending Account. Here are a few ideas for using your balance:
     • Invest in an extra pair of glasses, prescription sunglasses or contact lenses
     • Stock up on contact lens cleaning solution and disinfectants
     • Treat yourself
        to a trendy pair
        of designer
                            Example of Possible Forfeited Funds
                            Assume you contributed $1,000 to the Health Care Flexible
        frames or
                            Spending Account, but you submitted only $800 in eligible
        special lenses
                            expenses. You forfeit the $200 balance in your account.
     • Try                  In addition, you contributed $2,000 to the Dependent Care Flexible
        acupuncture
                            Spending Account and submitted $2,200 in eligible expenses. You
        for your aches      would be reimbursed the full $2,000 you contributed for the year.
        and pains, if
                            But, you could not use the $200 you forfeited in the health care
        your doctor
                            spending account to cover the remaining $200 of dependent care
        recommends it
                            expenses.
     • Get any
        needed                                              Health Care       Dependent Care
        physical            Your annual contributions       $1,000            $2,000
        exams, dental       Your total eligible expenses $ 800                $2,200
        exams or            Your reimbursement              $ 800             $2,000
        diagnostic tests Amount you forfeit                 $ 200             $0
        before the
        benefit plan year ends
     • Replace old or worn fillings before the benefit plan year ends, if your dentist
        recommends it
     • Track the cost of your gas, parking, and tolls (or taxi charges) to and from your health
        care provider, and submit the travel expenses for reimbursement
        • Travel and lodging away from home for medical reasons (Limitations may apply. See
            IRS Publication 502 for details.)
        • Tuition and tutoring for a child with severe learning disabilities, including dyslexia
        • Transportation to and from your health care provider (including Alcoholics
            Anonymous [AA] meetings)
     • Vitamins by prescription
     • Weight-loss programs prescribed by a physician for a specific ailment
     • Nursing care for a dependent (such as your dependent elderly parents) if it is not
        custodial nursing home care
     • Other expenses that are considered tax deductible by the IRS
     • These include the cost of many services and equipment for the disabled.
     • For a complete list of eligible expenses, see IRS Publication 502, available from your
        local IRS office. Or, order a copy from the IRS by calling 1-800-829-3676.


                                               65
You can use the Health Care Flexible Spending Account for health care expenses that are
considered eligible deductions on your federal income tax return but are not reimbursed by
another health plan. Eligible expenses may include your share of the cost of medical, dental,
vision, and hearing care for you or a dependent.

Do you expect to pay any of these eligible expenses during the benefit plan year? If so, there is
a good chance you can save money by enrolling in the Health Care Flexible Spending Account:

   •   A deductible, coinsurance or a copayment
   •   Medical, dental, vision or hearing expense that is not covered by a health care plan.

Note: Many health care expenses are not eligible for reimbursement, such as your payroll
deductions for your medical and/or dental plan contributions.

Health care expenses can be for:
• Yourself
• Your spouse
• Your unmarried children (including stepchildren, adopted children and foster children)
• Other dependents who live with you throughout the calendar year.

If you provide more than one-half of your dependents’ financial support during the current
calendar year, their expenses are eligible. If you are divorced or legally separated, expenses for
your children who are considered your dependents for federal tax purposes are eligible.

Estimating Your Eligible FSA Expenses

Use the following worksheet to estimate your out-of-pocket health care expenses for the coming
benefit plan year (July 1 to June 30).




                                                66
ESTIMATE YOUR ANNUAL OUT-OF-POCKET HEALTH CARE EXPENSES
This worksheet may help you estimate your out-of-pocket health care expenses for
the next benefit plan year (July 1 to June 30).
                                                                        Estimate your
                                  If you or a family member will . . .
                                                                        deductible,
                                                                        coinsurance, and
                                                                        copayment
 Regularly visit a health care provider, such as a physical therapist,
             chiropractor, dermatologist, gynecologist, or psychiatrist $
                                                                        _______________
                                Need surgery or major dental work $
                                                                        _______________
                          Buy prescription drugs on a regular basis $
                                                                        _______________
                                 Purchase glasses or contact lenses $
                                                                        _______________
                                              Need orthodontic work $
                                                                        _______________
                                              Purchase hearing aids $
                                                                        _______________
              Have other eligible expenses that are not reimbursed $
             under a medical or dental plan in which you are enrolled _______________
                                                            (Others): $
                                                                        _______________
                                 Your Estimated Annual Expenses: $
                                                                        _______________

Eligible Health Care Expenses

The Health Care Flexible Spending Account reimburses you for these eligible expenses:
• Medical and dental plan copayments, deductibles and coinsurance
• Charges above the medical and dental plans' usual, reasonable and customary limits
• Expenses that are partially covered by your medical or dental plan, such as the cost of:
   • Alcoholism/substance abuse (chemical dependency) treatment (including meals and
      lodging provided by a treatment center)
   • Birth control devices
   • Chiropractic or physical therapy
   • Dental bridges and dentures
   • Eyeglasses or contact lenses
   • Hearing aids and their batteries
   • Infertility services
   • Medical equipment, such as crutches or wheelchairs
   • Mental health treatment
   • Orthodontia - Periodontal cleanings
   • Prescription drug copayments and coinsurance
   • Retin A (when medically necessary and not for cosmetic purposes)


                                              67
   •   Speech therapy
   •   Certain expenses that are not covered by your medical or dental plan (but can be
       reimbursed), such as the cost of:
       • Acupuncture
       • Contact lens replacement insurance
       • Home modifications to accommodate a disabled person (including disabilities caused
           by arthritis)
       • Laser eye surgery, such as LASIK, radial keratotomy and penetrating keratoplasty
       • Removal of lead-based paint to prevent your young child who has (or had) lead
           poisoning from eating paint
       • Massage therapy
       • Orthopedic shoes
       • Over-the-counter medications (for a complete list, check on the Excel website under
           Service Providers)
       • Smoking-cessation programs (does not include expenses for drugs that do not
           require a prescription, such as nicotine gum or patches)
       • Sterilization reversal
       • TMJ post-surgery therapy and appliances

Ineligible Health Care Expenses

The Health Care Flexible Spending Account does not reimburse you for the following (even if
they are recommended by your doctor):
   • Cosmetic treatment (unless the treatment corrects a deformity arising from or directly
       related to a congenital abnormality, a personal injury resulting from an accident or
       trauma, or a disfiguring disease), Cosmetic treatment includes, but is not limited to, teeth
       bleaching, laser peels, chemical peels, hair transplants and treatment for male pattern
       baldness
   • Drugs prescribed for cosmetic purposes (such as Rogaine, a drug prescribed for hair-
       loss treatment)
   • Dance or swimming lessons
   • Electrolysis
   • Expenses reimbursed through any health insurance policy or plan, such as your
       spouse's health plan or Medicare
   • Expenses you or a family member incurred before the effective date of your Health Care
       Flexible Spending election, or change of your Health Care Flexible Spending election
   • Expenses you or a family member incurs after the end of the benefit plan year (June 30)
   • Health club dues, YMCA dues, and related expenses
   • Household help
   • Liposuction
   • Marriage or family counseling
   • Maternity clothes, diaper service, and related expenses
   • Nonprescription drugs or vitamins (unless prescribed by a physician as periodically
       necessary to treat a specific disease or condition)
   • Custodial nursing home care




                                                68
   •   Premiums for automobile insurance, including premiums to insure medical care for
       persons injured by or in your car
   •   Premiums for life, disability, or accidental death and dismemberment (AD&D) insurance
   •   Premiums for medical, dental, and vision insurance, including COBRA premiums
   •   Transportation to and from work (even if your condition requires special means of
       transportation)
   •   Trips or vacations taken for relief of a condition, change in environment, improvement of
       morale, or general health purposes
   •   Tuition for a child with disciplinary problems who is enrolled in a special school
   •   Uniforms
   •   Weight-loss programs (unless prescribed by a doctor as medically necessary for the
       treatment of a specific disease or condition)
   •   Any other expenses that are not deductible on a federal income tax return (see IRS
       Publication 502)

Dependent Day Care Flexible Spending Account
The Dependent Day Care Flexible Spending Account can save you money if you use it to pay
for the services of a day care provider while you work. If you are married, to be eligible to use a
Dependent Day Care FSA, your spouse also must work (or actively be searching for work). The
only exception is if he or she is disabled or a fulltime student.

If you are divorced or legally separated, you can use the Dependent Care Flexible Spending
Account if you have custody of your child for a longer period of the year than does your child's
other parent. In addition, you must provide more than half of your child's financial support and
claim your child as a dependent on your federal income tax return.

Eligible expenses include the cost of day care for your dependent children under age 13. Day
care also can be for a spouse or dependent relative who is incapable of caring for himself or
herself.




                                                69
ESTIMATE YOUR EXPENSES – DEPENDENT DAY CARE
Your estimated dependent care expenses for July 1 to June 30:
     Subtract or add amounts to reflect the following situations that may
                                      occur during the benefit plan year:
  You will send your child to summer day camp or hire a babysitter            + $____________
                                                            for the summer
You or your spouse plans to take an extended vacation or leave of             + $____________
  absence (only expenses incurred while you both are working can be
                                                                reimbursed)
Your day care rates will go up or down because your child will move           ± $____________
                 to a different age group, such as from infant to toddler
    Your child will turn age 13 during the year (child care expenses          – $____________
     after your child's 13th birthday are not eligible for reimbursement)
 A relative will visit for an extended period of time and will care for       – $____________
                                               your dependent(s) for free
  You will move to a new area where the cost of day care is different         ± $____________
               (contact providers in the new area to help you estimate)
      You will pay a nonrefundable fee to reserve your dependent's            + $____________
                                placement in a day care center or school
      Other circumstances will affect your dependent care expenses     ± $____________
                                           Your Estimated Annual Total
                                                                         $____________

Eligible Dependents

Day care expenses that can be reimbursed through the Dependent Care Flexible Spending
Account include day care for:
   • Children under age 13 whom you claim as exemptions on your federal income tax return
   • A spouse who is incapable of caring for him- or herself
   • Parents, grandparents, children age 13 or older, or other relatives or members of your
      household who:
      • Are claimed as a dependent on your federal income tax return
      • Spend at least eight hours each day in your home
      • Receive more than half of their support from you, and
      • Are physically or mentally incapable of caring for themselves

If your spouse is incapable of caring for him- or herself, the expenses you incur for his or her
care must enable you to be gainfully employed, and your spouse must:
     • Have a physical or mental condition that does not allow him or her to take care of
        personal, hygienic or nutritional needs, or
     • Require fulltime attention for safety reasons

The fact that your spouse is unable to engage in substantial gainful activity or perform his or her
normal functions is not necessarily sufficient for day care expenses to be reimbursed under the
plan.




                                                70
Eligible Dependent Care Expenses

Expenses eligible for reimbursement include:
   • The cost of day care provided in or out of your home (including Social Security taxes you
      pay on behalf of your provider) by an eligible babysitter, for example
   • The cost of day care provided at a licensed day care center or kindergarten that cares
      for at least six people and complies with local
      regulations (but not services from a facility that
      charges no fee)
                                                                   Know Your
   • The cost of day care provided at a day camp (but not          Caregiver's Tax
      tuition and other fees unrelated to day care and not         Number
      at an overnight camp)                                        If you use the Dependent
   • The cost of day care provided at a private school (but        Care Flexible Spending
      not tuition and other fees unrelated to day care if the      Account, you have to
      child is in kindergarten or above)                           provide your caregiver's
   • Any nonrefundable fees to secure your dependent's             taxpayer identification (or
      place in a day care center                                   Social Security) number on
   • Any other expenses that would be considered eligible          your claim forms.
      for a dependent care credit for federal income tax           Internal Revenue Service
      purposes.                                                    (IRS) rules will not allow
      For a complete list of these expenses, see IRS               your expenses to be
      Publication 503, available from your local IRS office.       reimbursed if you do not
      Or, order a copy from the IRS by calling 1-800-829-          provide the number.
      3676.

Who Is a Qualified Caregiver?

Your day care provider can be a babysitter if his or her services enable you and your spouse to
work but CANNOT BE any of the following:
• Your spouse
   • Your child's other parent
   • Your child who is under age 19 at the end of the benefit plan year
   • A person whom you or your spouse claims as a dependent for income tax purposes.

Ineligible Dependent Care Expenses

The following expenses are not eligible for reimbursement under the Dependent Care Flexible
Spending Account:
   • Child support payments
   • Clothing, entertainment or food expenses
   • Day care costs for hours when you or your spouse is not working or is working as a
        volunteer
   • Expenses for day care while you or your spouse is away from work because of vacation,
        illness, or leave of absence
   • Expenses you or a family member incurred before the effective date of, or a change in,
        your Dependent Care Flexible Spending election
   • Expenses that are reimbursed by another plan, such as your spouse’s or a government
        plan
   • Expenses that occurred before you enroll in the Dependent Care Flexible Spending or
        after your participation ends


                                              71
   •     Expenses that occur during any time you cannot claim your dependent as an exemption
         on your federal income tax return
   •     Day care costs after the benefit plan year ends (June 30)
   •     Finder's fees for placement of an au pair or nanny
   •     Fulltime convalescent or nursing home expenses (except care for a mentally disabled
         child under age 13)
   •     Overnight camp expenses
   •     Transportation expenses for your caregiver or your dependent
   •     Tuition for the first grade or beyond
   •     Any other expenses not eligible as a dependent care credit for federal income tax
         purposes (see IRS Publication 503 from your local IRS office)

Contribution Limits

Each benefit plan year, you can set aside up to $96 per week ($4,992 per year) in your
Dependent Care Flexible Spending Account. However, special limits apply if you are married, as
shown in the following table:
                                 If this is your situation...   Then your maximum annual contribution is...
                You or your spouse earns less than $5,000. The amount the lower-paid spouse earns, up to
                                                              $4,992.
       You and your spouse file a joint income tax return and $4,992 for your spouse's and your accounts
         your spouse also participates in a Dependent Care combined.
                                 Flexible Spending Account.

    You and your spouse file separate income tax returns. $2,496 under the Vought Aircraft Industries, Inc.
                                                               account.
   Your spouse is a fulltime student for at least five months $2,400 (or $200 for each month that your spouse is a
                                                   of the year student or is disabled) if you have one dependent.
                                   Your spouse is disabled $4,800 (or $400 for each month that your spouse is a
                                                           student or is disabled) if you have two or more
                                                           dependents


How Other Benefits Are Affected

Your Flexible Spending Account contributions will not affect your other Vought Aircraft
Industries, Inc. benefits that are based on your pay. These other benefits, such as life
insurance, disability, and retirement benefits, will continue to be based on your full pay.
However, your contributions to an FSA could affect the amount of your Social Security benefits
at the time you draw them, because your Social Security benefits are based on your average
annual taxable income – up to the Social Security annual wage base – over your entire career.
Your Flexible Spending Account contributions lower your taxable income, so your Social
Security benefits at retirement or disability may be slightly less if:
     • You earn less than the Social Security annual wage base for the current year ($90,000
         in 2005), or
     • Your before-tax contributions reduce your taxable income below the Social Security
         annual wage base.
If you earn more than the Social Security annual wage base, your Social Security benefits are
not affected.




                                                         72
Health Care Flexible Spending Account vs. Tax Deduction

Even though the Health Care Flexible Spending Account reimbursements can save you money
on taxes, the federal income tax deduction for medical expenses can provide greater tax
savings for some employees. To claim such a deduction, your out-of-pocket health care
expenses must exceed 7.5% of your adjusted gross income. Most employees find that their
eligible health care expenses do not reach that level. Ask your tax adviser which method is best
for your personal situation.

Dependent Care Flexible Spending Account vs. Tax Credit

Another way to reduce federal income taxes with dependent care expenses is to claim the
childcare credit on your tax return. The combination of Flexible Spending Account
reimbursements and tax credits that provides the greatest tax saving for you depends on your
household income, the number of your eligible dependents, and your income tax filing status.

You have the option to use both the Flexible Spending Account and the tax credit. However, the
IRS does not allow you to claim a tax credit for any expenses reimbursed under the Flexible
Spending Account. In other words, you cannot "double deduct" these expenses to receive a tax
saving twice.

Moreover, the amount of expenses that qualify for a tax credit is reduced - dollar for dollar - by
the amount that you receive from the Dependent Care Flexible Spending Account.

Note: You are responsible for ensuring that the expenses are valid IRS deductions. The claims
administrator and Vought Aircraft Industries, Inc. are not responsible for verifying that your
claims are valid tax deductions. You should consult your tax adviser with any questions
regarding your income tax obligations. For more information review IRS Publication 503-Child
and Dependent Care Expenses and IRS Form 2441, and consult a qualified tax advisor.


When Participation Ends

Your participation in the Flexible Spending Accounts ends and your contributions stop when the
first of these events occurs:
• You or your dependents no longer are eligible under the plan, or
• The plan terminates

For information about how your enrollment may be affected by certain life events, such as a
leave of absence or separation from employment, see What Happens to Your Benefits in
Special Situations in this document.

You can submit claims that you incur before your participation in the Flexible Spending
Accounts ends. The deadline to submit claims is 92 days after the benefit plan year ends
(September 30).

Claims that you incur after your participation ends are not eligible for reimbursement, and you
lose any money left in your accounts. However, under certain circumstances, when your
coverage otherwise would end, you may continue participating in the Health Care Flexible
Spending Account by making after-tax contributions through COBRA. When you elect COBRA,




                                                73
you can submit expenses for reimbursement and use the balance in your Health Care Flexible
Spending Account till the end of the benefit plan year.

After the benefit plan year ends, there is no tax advantage to continuing your Health Care
Flexible Spending Account. So, you may want to discontinue COBRA for the Flexible Spending
Account at that time.




                                            74
Frequently Asked Questions

1. What are Flexible Spending Accounts (FSAs)?
Flexible Spending Accounts work somewhat like a personal bank account. Through
payroll deductions, you can set aside money to cover eligible health care and dependent
care expenses.
The money comes out of each paycheck – before taxes – and is deposited in a special
account. You can draw money from the account during the year to reimburse yourself for
eligible expenses.
Vought Aircraft Industries, Inc. offers two FSAs, one for health care expenses and one
for dependent care expenses.

2. Should I enroll in an FSA?
An FSA can provide a significant tax savings by enabling you to pay certain eligible
expenses with before-tax dollars. You save money on FICA taxes, federal income taxes
and, in most areas, state and local income taxes.

3. How do FSAs work?
If you are considering enrolling in an FSA, estimate your out-of-pocket expenses for
health care and/or dependent care for each benefit plan year, July 1 to June 30.
Contributions to your account are deducted from your paycheck on a before-tax basis.
Once your contributions are deposited, they remain in your account until you file a claim
for reimbursement. Your contributions are used to reimburse you for eligible health care
and dependent care expenses that you incur during the benefit plan year.

4. If I do not use all the money in my account during the benefit plan year, will I receive
a refund? Or can I carry it over to the next benefit plan year?
The answer is “no” to both questions. You cannot receive a refund or roll the money over
to the next year. That is why it's important to estimate your expenses as carefully as
possible.
The IRS requires you to forfeit any amounts remaining in your account after the deadline
for filing claims for the current benefit plan year. The plan year ends June 30 and you
have until September 30 to file claims.

5. If I enroll in both FSAs, can I transfer money between accounts?
No, according to IRS rules, you cannot transfer money between them.

6. What types of expenses are eligible for reimbursement from the health care FSA?
You can use your FSA to pay certain medical, dental, vision, hearing, and other health care
expenses not covered by your health plan. Eligible expenses also include copayments,
deductibles, and coinsurance.

7. To enroll in the health care FSA, am I required to participate in the Vought Aircraft
Industries, Inc. medical or dental plan options?
No. You can submit expenses not reimbursed by any medical or dental plan – such as
your spouse's employer's plan – and receive reimbursement under the Vought Aircraft
Industries, Inc. health care FSA.

8. What types of expenses are eligible under the dependent care FSA?
In general, you can use before tax dollars to pay for day care for your children under age
13 and qualifying older dependents (including eligible dependent parents).




                                               75
9. Can I use the dependent care FSA if my day care provider is a relative?
Yes, provided you do not claim your relative as a dependent on your federal income tax return,
and he or she is not your spouse, your child's other parent, or your child who is under age 19.
You must provide your day care provider’s name, address, and tax identification number (Social
Security number) on your tax return.

10. During the year, can I change the amount of my contributions to the FSAs?
Yes, if you experience a qualified change in status provided the change you make in
your account is consistent with your life status change.

11. What happens to my FSA account if I take an approved, unpaid leave of absence?

Dependent care FSA: Your contributions stop while you are on leave. Expenses that
you incur during your leave are not eligible for reimbursement.

Health care FSA: You can continue making contributions to your account with after-tax
dollars by sending in your contributions by personal check. This provision allows you to
submit expenses that occur while you are on leave. If you do not contribute to the
account, your participation ends and claims you incur are not eligible for reimbursement.
When you return to work, you can resume your FSA contributions. For more details, see
What Happens to Your Benefits in Special Situations.




                                               76
                           LIFE INSURANCE
   Life insurance for you
   and your family
   Elements in your financial planning
Life insurance can be an important part of your financial planning. It provides a specific financial
benefit to you and your family in the event of your death or the death of an enrolled family
member.

Vought Aircraft Industries, Inc. provides you with a basic level of life insurance at no cost to you.
In addition, the company offers you the opportunity to purchase additional coverage for yourself
and your eligible family members. You can enroll in optional supplemental coverage within 31
days after you are hired, during the Annual Enrollment period, or within 60 days of a qualifying
event life status change.

Your basic and optional life insurance pays benefits to your beneficiary in the event of your
death. Dependent life insurance for your spouse or children pays a benefit to you in the event
an enrolled dependent dies.

Basic and Optional Life Insurance Plans
As a Vought Aircraft Industries, Inc. employee, you have these basic and optional supplemental
benefits under the Vought Flexible Benefits Plan:
   • Basic life term insurance for you, which pays a benefit to your beneficiaries if you die.
        Vought Aircraft Industries, Inc. pays the full cost of this coverage.
   • Optional life insurance for you and dependent life insurance for your spouse and children
        (a term insurance policy to supplement your basic insurance). Your optional life
        insurance pays a benefit in addition to your basic life insurance benefit. Dependent life
        insurance for your spouse and children pays you a negotiated benefit when you enroll.
        You pay the full cost of this life insurance through payroll deductions.


Life Insurance - UAW
Your Basic Life Insurance
The company provides you with $35,000 basic life insurance coverage at no cost to you. The
basic coverage benefit amount is doubled in the event of your accidental death.

In addition to basic life insurance, you may purchase optional life insurance for yourself in
$5,000 increments, starting at $5,000, to a maximum of $50,000. Your cost for optional
coverage is age-rated; that is, your premium will increase as you reach the next 5-year
increment of age. You use after-tax dollars for your contribution for the amount of company-
sponsored life insurance that exceeds $50,000 – that is, the combination of your basic life and
optional life amounts.




                                                 77
                                     Optional Life Insurance
                                           Coverage
                                             $5,000
                                            $10,000
                                            $15,000
                                            $20,000
                                            $25,000
                                            $30,000
                                            $35,000
                                            $40,000
                                            $45,000
                                            $50,000

Evidence of Insurability is required if you are selecting optional employee life insurance for the
first time or increasing your coverage. No evidence of insurability is required if you are making
changes that are consistent with a family status change or within 31 days of your hire date.
For your Dependent(s)

You may enroll your family for dependent life insurance at a cost of 48 cents per week,
regardless of the number of dependents covered. (You pay for dependent coverage
with after-tax dollars.)
 You may purchase the following coverage amounts:
        • Spouse, $10,000
        • Children $5,000 each (Child/ren must be born alive to qualify.)

Evidence of Insurability is required for a spouse who is enrolled after first eligibility. No
evidence of insurability is required for your dependent children.


Life Insurance – IBEW & SPFPA
Your Basic Life Insurance
The Company provides $35,000 basic life insurance coverage at no cost to you. The basic life
coverage benefit amount is doubled in the event of your accidental death.

Your Optional Life Insurance

In addition, you may purchase optional life insurance for yourself of 1 to 2 times your annual
base pay. Your cost for optional coverage is age-rated; that is, your premium will increase as
you reach the next 5-year increment of age. You use after-tax dollars for your contribution for
the amount of company-sponsored life insurance that exceeds $50,000 – that is, the
combination of your basic life and optional life amounts.

                                  Optional Life Insurance
                              1x Annual Base Pay
                              2x Annual Base Pay




                                                 78
Evidence of Insurability is required if you are selecting optional employee life insurance for the
first time (after you are first eligible) or increasing your coverage. No evidence of insurability is
required for your dependent children.
For Your Dependent(s)
You may enroll your family for dependent life insurance at a cost of 48 cents per week,
regardless of the number of dependents covered. (You pay for dependent coverage with after-
tax dollars.)
Coverage amounts are the following:
        •   Spouse, $10,000
        •   Children $5,000 each (Child/ren must be born alive to qualify.)

If both you and your spouse work for Vought Aircraft, you each may purchase optional life
insurance for your children.




                                                 79
Enrolling for Optional Life Insurance

You may enroll in optional life insurance for yourself and dependent life insurance for your
eligible dependents without evidence of insurability within 31 days after you are hired—or, if
                                       later, within 60 days of the date you or they become
To File a Claim for                    eligible for coverage.
Life Insurance Benefits
To receive benefits under any of the        You can enroll in optional life insurance at any other time
life insurance plans, you or your
                                            if you provide satisfactory evidence of insurability (EOI) to
beneficiary must report the death of
the enrolled person:                        the insurance company. See chart that follows for
• Call the Vought Benefits Center           circumstances requiring evidence of insurability.
      at 1-866-689-5999 to report the
      death. The company notifies the       In these circumstances, the Vought Benefits Center sends
      insurance company, gathers the        you an EOI form. You must return the completed EOI form
      necessary information, and            to the insurance company as soon as possible. The
      provides you or your beneficiary      insurance company reviews the form and notifies you and
      with information about the            the Vought Benefits Center when your coverage is
      payment of life insurance             accepted or rejected. If your coverage is approved, the
      benefits.                             insurance company tells you the date coverage begins.
• You will be asked to provide a
      certified copy of the death
      certificate and copies of birth       For your optional life insurance coverage to take effect,
      certificates and marriage             you must be an active employee and not on a leave of
      certificates, if applicable, of the   absence at the start of the benefit plan year. If you are on
      deceased.                             a leave of absence and you decide to increase your
                                            coverage, the coverage increase is effective when you
                                            return to work – even if you satisfied the EOI requirement.

For your dependent's coverage to take effect, he or she must not be confined for medical care
or treatment – either in a medical treatment facility or at home – on the effective date of the
coverage. If your dependent is confined, coverage begins when he or she is released from
confinement.




                                                     80
Evidence of Insurability Requirements

The following chart shows Evidence of Insurability requirements in various situations.
                               Evidence of Insurability (EOI) Requirements
       QUALIFYING          EMPLOYEE OPTIONAL                 SPOUSE LIFE                CHILD LIFE
           CHANGE                     LIFE
   Annual Enrollment     EOI to enroll or increase         EOI to enroll or to   None
                                                           increase
             New Hire    No EOI if elected within 31       No EOI if elected     None
                         days of hire                      within 31 days of
                                                           hire
             Marriage    No EOI to enroll or increase if   No EOI if elected     None
                         elected within 60 days of         within 60 days of
                         marriage                          marriage

     Birth/Adoption of   No EOI to newly elect or          No EOI if elected     None
                 Child   increase within 60 of event       within 60 days of
                                                           birth/adoption




                                                   81
                      Evidence of Insurability (EOI) Requirements (continued)

 Divorce, Annulment,      EOI for any increase within    Drop spouse life       None
    Legal Separation      60 days of event
        Spouse loses      EOI for new election or        No EOI to newly        None
           coverage       any increase within 60         elect coverage
                          days of event                  within 60 days of
                                                         loss of coverage
        Spouse gains      EOI for new election or        EOI required for any   None
         employment       any increase within 60         increase or new
                          days of event                  election within 60
                                                         days of event
   Purchase of home       No EOI to newly                EOI required for any   None
                          elect/increase if elected      increase or new
                          within 60 days of purchase     election within 60
                          of home and/or increase in     days of event
                          financial obligations due to
                          purchase of a home. Must
                          provide copy of signed
                          Trust Deed bearing the
                          employee’s name as
                          home’s purchaser.
         Spouse dies      EOI for new election or        Drop spouse Life       None
                          any increase within 60
                          days of event
            Child dies    EOI for new election or        EOI required for any   None
                          any increase within 60         increase or new
                          days of event                  election
         Foster child/    EOI for new election or        EOI required for any   None
       Legal guardian     any increase within 60         increase or new
                          days of event                  election
              QMCSO       EOI for new election or        EOI required for any   None
                          any increase within 60         increase or new
                          days of event                  election
        Child Regains     EOI for new election or        EOI required for any   None
       Student Status     any increase within 60         increase or new
                          days of event                  election
Child Loses Eligibility   EOI for new election or        EOI required for any   Drop Child Life if last
                          any increase within 60         increase or new        eligible child
                          days of event                  election




                                                    82
Changing Your Life Insurance Selection

You may change your selection of optional life insurance during the benefit plan year when you
have a qualified change in status, or at any other time by providing evidence of insurability
(EOI). You have 60 days after a qualified change in status to change your selection.

If you are reducing your coverage, at any other time besides annual enrollment, you may only
reduce your life insurance amount equal to or greater than $50,000 (combined basic and
optional).

Naming a Beneficiary

Your insurance beneficiary is the person or persons you choose to receive your life insurance
benefits when you die. You also may choose your estate or living trust as the beneficiary of your
life insurance benefits.

If the beneficiary is under age 18, the insurance company requires that benefits be paid to a
legal guardian on behalf of the minor if not, monies will be held until the child becomes age 18.
If you do not name a beneficiary, your benefits are distributed to your estate according to the
laws of your state.

If you elect dependent life insurance for your spouse or your children, you are automatically the
beneficiary of that coverage.

If you haven't done so recently, please review your life insurance beneficiary designations
and be sure they are up to date. If you need to change your beneficiary, you may do so on-line
or by completing a paper form.

You can use the Internet or Intranet via the Excel Web site. Select Employee, then Beneficiary
Review or Change, and follow the instructions. Paper forms are available from the Vought
Benefits Center.

What Happens If You Become Disabled

If approved for “waiver of premium,” your basic and optional life insurance, if purchased, would
continue until you are no longer disabled, or reach age 65, whichever occurs first.

To receive a waiver of premium, you must provide written proof of your disability when the
insurance company requests it. In addition, the insurance company may require you to be
examined by a doctor.

When your waiver of premium ends, you may be eligible to convert your life insurance coverage
to an individual whole life insurance policy.

What Happens If Your Employment Ends

The Life Insurance Conversion Privilege

Your life insurance coverage and any optional coverage for your spouse and/or children end on
the date of your termination. The conversion privilege allows you to convert all or a portion of
your life insurance coverage to an individual whole life insurance policy within 31 days of your
termination. The policy becomes effective at the end of the 31 days.


                                                83
(If you die within that period, the life insurance company pays benefits to your beneficiary for
your basic life insurance as well as any optional life insurance as if you had converted the
policy, whether or not you had actually started that process.)

The life insurance company issues the individual whole life insurance conversion policy. You
can contact any licensed representative of the insurance company and choose the amount and
type of individual policy that suit your needs. There may be several types of policies from which
you can select.

You do not have to provide evidence of insurability. The cost is based on your age and the
amount and kind of life insurance you select. To request a conversion policy, you must request
a form from the Vought Benefits Center.
    • The Vought Benefits Center fills out the form and mails it to you.
    • You take the form to any agent of the life insurance company within the 31-day
        conversion period.
From then on, you pay premiums directly to the life insurance company.




                                                84
Frequently Asked Questions
1. What is evidence of insurability (EOI)?
Evidence of insurability (EOI) is evidence that you are in good health at the time you
enroll in the optional life insurance plan. If you enroll when you are first eligible, you do
not have to provide EOI. If you decide to enroll at a later date, you must provide EOI. You
may be required to provide EOI if you increase the amount of your insurance coverage.

2. How do I provide evidence of insurability?
Call the Vought Benefits Center at 1-866-689-5999 and ask for an EOI form. Complete
the form and return it to the Benefits Office. On the basis of the information you provide,
the insurance company determines your eligibility to enroll in the optional plan. In
addition, the insurance company may ask you to schedule a physical exam with a
physician of its choice. You pay the full cost of the exam.

3. If a covered person dies, when does the life insurance company pay the benefit?
Typically, the life insurance company pays the benefit to you or your beneficiary shortly
after receiving a certified copy of the death certificate and documents that substantiate
the identify of the beneficiary.

4. What documents must I submit to file a claim?
You must provide the insurance company with certified copies of the death certificate and
documents that substantiate the identification of the beneficiary.

5. Do I pay a deductible under the life insurance plan?
No.




                                                 85
                                    DISABILITY

   Disability benefits –
   a safeguard against
   loss of income

Your Vought Aircraft Industries, Inc. disability benefits can help protect you against a loss of
income if you are ill or injured and cannot work. Your long-term disability benefits are designed to
provide you with income if you are absent from work as the result of an illness or injury.

Disability Benefits
If You Become Disabled
Disability is the inability to perform work. To receive sick pay or short-term disability income, you
must be unable to perform your job with the company. To receive extended disability income,
you must be unable to engage in any gainful employment. Your disability must be documented
by current medical evidence.
During your disability you must remain in the regular care of a qualified physician, participate in
appropriate courses of treatment prescribed by your physician, provide required medical
information to the company, and cooperate in the evaluation of your disability. Your benefit
cannot continue if you fail or refuse to abide by any of these requirements.
A medical professional that can substantiate a disability for purposes of this plan is defined as a
medical doctor, doctor of osteopathy, podiatry or dentistry acting within the scope of his or her
license. Chiropractors or doctors of psychology may not certify a disability. Two successive
periods of disability are treated as one disability unless you return to work for more than four
hours between the disabilities.
Disability Income
Your disability income benefits are designed to help you meet your financial needs, whether the
disability keeps you away from work for one day, one year, or even longer. Benefits give you
financial assistance, with a focus on helping you get back to productive work.
There are two disability income benefits, described below. One begins where another leaves off
so that you have a continuous flow of cash in the event of a lengthy absence because of a
disability.
         •  Short-term disability income
         •  Extended disability income.
You may also be eligible for disability retirement income if you have 10 years of benefit service.




                                                 86
Short-term Disability Income

Short-term disability income begins on the fourth day of disability and continues through the 52nd
week of a disability. Your weekly benefits are determined based on the schedule of benefits
contained in the collective bargaining agreement. Please refer the latest, appropriate collective
bargaining agreement for your applicable benefits.

Extended Disability Income
Extended disability benefits begin with the 53rd week of disability. Weekly benefits are equal to 50
percent of your base pay at the time your disability began. Benefits can continue to retirement
age but the total period of disability cannot be more than your total length of service prior to the
beginning of the disability period.

If you have 10 years of benefit service, you may be eligible for disability retirement starting on the
first day of the month immediately following 52 consecutive weeks of short-term disability.
Retirement benefits paid or payable will be subtracted from your extended disability income.
Your disability income is also reduced by benefits you are eligible to receive from Social Security,
worker’s compensation or other government benefits.
When Extended Disability Income Ends

Extended disability benefits end when the first of the following conditions occurs:
      •   The participant no longer has an extended disability
      •   The participant is no longer under the care of a physician for treatment of the cause of
          the disability
      •   The participant refuses to have a medical examination at the employer’s expense
      •   The participant has received extended disability benefits for the length of participant’s
          seniority as defined by the applicable collective bargaining agreement
      •   Five years from the date the participant became disabled if the disability occurs upon
          or after reaching age 60, but before reaching age 65
      •   The date the participant reaches age 70 if the disability occurs upon or after reaching
          age 65 but before reaching 69
      •   One year from the date the participant incurred the disability if on or after participant’s
          69th birthday
      •   The participant dies.

Health Care Benefits While on Disability Leave
Employees who become disabled retain health care coverage according to the following
schedule:

                      Seniority on Last Day      Health Care Eligibility
                                    Worked

                           90 days to 3 years    1 year

                           3 years to 5 years    1-1/2 years

                               5 years or more   2 years




                                                 87
Contributions for dependent coverage will be waived while an employee is on approved disability
leave that is not job-related.


Returning to Work from Disability Leave

Your disability income plan is designed to help you return to work. It provides financial assistance
so you can concentrate on your recovery. Please notify the Benefits office and your supervisor
as soon as you can return to work. If you are absent for four days or more, you must report to the
company medical department before returning to your work assignment.

Right of Recovery

The Plan Administrator is entitled to offset the payments made to a Participant to recover:
       • Any payment that is made that exceeds the maximum benefit allowed under the Plan
       • Any financial obligation to another employee benefit plan of the Employer (e.g.
          Healthcare contributions)
       • Any financial obligation to the Company

Right of Subrogation

The participant, by accepting payment of benefits from the Plan, assigns all rights of recovery to
the Plan that the participant may have against any person, company, organization for any
negligent or any willful act or omission resulting in the Disability or Extended Disability.




                                                88
              GENERAL PLAN ADMINISTRATION

Filing claims, plan administration,
and your legal rights
This chapter contains information about the administration of the Vought Aircraft Industries, Inc.
benefit plans, as well as your rights as a participant. You probably will not need this information
every day; however, the company wants you to understand your rights and the procedures to
follow in certain situations.
                                      PLAN DOCUMENTS

This document serves as a summary plan description of certain Vought Aircraft Industries, Inc.
employee welfare benefit plans to meet ERISA’s disclosure requirements. It does not replace the
official plan documents or insurance contracts, which govern in all cases.

In the event of any ambiguity or omission in this summary, or any conflict between this summary
and any official plan documents or insurance contracts, the official plan documents and
insurance contracts govern.

The plan administrator has sole authority to interpret the terms of the plans. This summary is not
a legal document, and neither the plan document, the insurance contracts nor this summary
constitutes an implied or expressed contract or guarantee of employment.

                                   FUTURE OF THE PLANS

Vought Aircraft Industries, Inc. has the absolute right to amend or terminate the plans at any
time. The plan administrator may amend any plan to maintain its compliance with administrative,
procedural or other matters. A decision by Vought Aircraft Industries, Inc. to change or end a
plan may be the result of:

       •   Changes in federal or state laws governing welfare benefits or retirement benefits
       •   The requirements of the Internal Revenue Code or ERISA
       •   The provisions of a contract or a policy involving an insurance company
       •   Any other reason.

Amendments to or termination of a plan may apply to active, inactive or former employees. A
plan change may transfer plan assets to another plan, or split a plan into two or more parts. The
plan administrator notifies you if an amendment or termination substantially affects your benefits.
If a welfare benefit plan is terminated, you have no further rights other than payment of claims for
eligible expenses that you incurred before the plan terminated. The amount and form of any final
benefit you may receive under a welfare benefit plan depend on plan assets, any contract or
insurance provisions affecting the plan, and decisions made by Vought Aircraft Industries, Inc.
Because contributions to the plan stop on the date the plan ends, the amount of plan assets
available to pay eligible claims does not exceed the amount of plan assets on the termination
date.




                                                 89
If a plan is terminated, employees and beneficiaries who are receiving coverage or benefits
under the plan stop their participation and receive no additional benefits. Claims for expenses
incurred before the termination date, however, are honored.
After all benefits are paid and legal requirements are met, the plan turns over any remaining plan
money to Vought Aircraft Industries, Inc.

If you have questions…

If you have any questions about the plans, contact the Vought Benefits Center at 1-866-689-
5999. If you have any questions about your rights under ERISA or about this statement outlining
your rights, you should contact the nearest regional office of the Employee Benefits Security
Administration, U.S. Department of Labor, listed in your telephone directory. You also may
contact the Division of Technical Assistance and Inquiries, Employee Benefits Security
Administration (EBSA) U.S. Department of Labor, 200 Constitution Avenue N.W., Washington,
D.C. 20210.

Cost of Coverage
Your contributions & costs for coverage under the plans may change from year to year. Vought
Aircraft Industries, Inc. will notify you if your costs change.

     ERISA – The Employee Retirement Income Security Act of 1974
In 1974, Congress passed the Employee Retirement Income Security Act (ERISA) to safeguard
the interests of participants and beneficiaries under employee benefit plans. As a participant of
the plan, you have certain rights and protections under ERISA, as outlined in the following
statement adapted from regulations of the U.S. Department of Labor.

Your Rights to Receive Information About Your Plan and Benefits

ERISA provides that all plan participants are entitled to:
      Examine, without charge, at the plan administrator's office and at other specified
      locations, such as worksites and union halls, all documents governing the plan, including
      insurance contracts and collective bargaining agreements, and a copy of the latest
      annual report (Form 5500 Series) filed by the plan with the U.S. Department of Labor.
      Obtain, upon written request to the plan administrator, copies of plan documents
      governing the operation of the plan, including insurance contracts and collective
      bargaining agreements, and copies of the latest annual report (Form 5500 Series) and
      updated summary plan description. 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.




                                                90
Prudent Actions by Plan Fiduciaries

In addition to creating rights for participants ERISA imposes duties upon the people who are
responsible for the operation of the plan. The people who operate the plan, called "fiduciaries" of
the plan, have a duty to do so prudently and in the interest of you and other plan participants and
beneficiaries. No one, including your employer, your union, or any other person, may fire you or
otherwise discriminate against you in any way to prevent you from obtaining a benefit or
exercising your rights under ERISA.

Enforcing Your Rights

If your claim for a benefit is denied or ignored, in whole or in part, you have a right to know why
this was done, to obtain copies of documents relating to the decision without charge, and to
appeal any denial, all within certain time schedules.

Under ERISA, there are steps you can take to enforce the above rights. For instance, if you
request a copy of plan documents or the latest annual report from the plan and do not receive
them within 30 days, you may file suit in a federal court. In such a case, the court may require
the plan administrator to provide the materials and pay you up to $110 a day until you receive the
materials, unless the materials were not sent because of reasons beyond the control of the
administrator. If you have a claim for benefits that is denied or ignored, in whole or in part, you
may file suit in a state or federal court after you have exhausted your appeal rights. In addition, if
you disagree with the decision or lack thereof concerning the qualified status of a domestic
relations order, you may file suit in federal court. If it should happen that plan fiduciaries misuse
the plan's money, or if you are discriminated against for asserting your rights, you may seek
assistance from the U.S. Department of Labor, or you may file suit in a federal court. The court
will decide who should pay court costs and legal fees. If you are successful the court may order
the person you have sued to pay these costs and fees. If you lose, the court may order you to
pay these costs and fees, for example, if it finds your claim is frivolous.

Assistance with Your Questions
If you have any questions about your plan, you should contact the plan administrator. If you have
any questions about this statement or about your rights under ERISA, or if you need assistance
in obtaining documents from the plan administrator, you should contact the nearest office of the
Employee Benefits Security Administration, U.S. Department of Labor, listed in your telephone
directory or the Division of Technical Assistance and Inquiries, Employee Benefits Security
Administration, U.S. Department of Labor, 200 Constitution Avenue N.W., Washington, D.C.
20210. You may also obtain certain publications about your rights and responsibilities under
ERISA by calling the publications hotline of the Employee Benefits Security Administration.




                                                 91
                    Obtaining New Medical Coverage (HIPAA)

The Health Insurance Portability and Accountability Act (HIPAA) can help you and your family
obtain new medical coverage if your coverage ends under the Vought Aircraft Industries, Inc.
medical plan (e.g., if you terminate employment).

If you change jobs, for example, you most likely would request coverage under your new
employer's health care plan.

If you or your dependents have a preexisting condition, your new health care plan would not be
required to cover any expenses related to the preexisting condition for the first 12 months. On
the other hand, if you and your dependents previously were enrolled in the Vought Aircraft
Industries, Inc. medical plan for 12 months or more, your new plan would be required to cover
any preexisting conditions immediately. However, if you had no health care coverage for a period
of 63 days or more before your next coverage begins, your previous coverage does not count as
"creditable coverage" and cannot be applied against a preexisting condition exclusion.

By law under HIPAA, Vought Aircraft Industries, Inc. must provide you with a Certificate of
Creditable Coverage when you or your dependents stop participating in a Vought Aircraft
Industries, Inc. health care plan. The certificate is sent to you within 45 days of the date Vought
Aircraft Industries, Inc. is notified of your termination.

You can present your Certificate of Creditable Coverage to a new health care plan to prove that
you previously had coverage. This certificate can reduce the length of time preexisting conditions
delay your new coverage.

Your Certificate of Creditable Coverage states:
   • The date the certificate was issued
   • The name of the Vought Aircraft Industries, Inc. medical plan you or your dependents are
      leaving
   • The period of time you or your dependents were enrolled in the medical plan
   • The name, address, and telephone number of the issuer of the certificate
   • The person to contact for further information.

Certificates of Creditable Coverage are issued to you:
     • Automatically, when your coverage under the plan ends – whether or not you elect
        COBRA
     • Automatically, when your COBRA coverage ends, if you elected COBRA coverage.
     • On request within 24 months of the date your coverage ends.
If you need to request a Certificate of Creditable Coverage, or if you are interested in more
information about HIPAA, call the Vought Benefits Center at 1-866-689-5999.
Special HIPAA Enrollment Period If You Lose Coverage

If you waive medical coverage for yourself or your dependents (including your spouse) during
enrollment because you or they have other health insurance coverage, and then you or they lose
that coverage, you may be able to enroll yourself or your dependents in a Vought Aircraft
Industries, Inc. medical plan before the next Annual Enrollment – specifically, within 60 days of
the date you or your dependents:



                                                 92
   •   Lose eligibility for coverage under another group health plan or
   •   Lose the employer contribution toward another group plan coverage

Once you enroll, your coverage is retroactive to the date you lost your other coverage.




                                               93
Permitted Uses and Disclosures of Protected Health Information
Title II of HIPAA imposes numerous requirements on employer health plans concerning the use
and disclosure of individual health information. This information, known as protected health
information, includes virtually all individually identifiable health information held by the plan -
whether received in writing, in an electronic medium, or as an oral communication. The privacy
rights under Title II of HIPAA were effective April 14, 2003.

The plan, or its health insurer, may disclose your health information without your written
authorization to Vought for purposes related to the administration of the plan. Vought agrees not
to use or disclose your health information other than as permitted or required by the plan
documents and by law. The only Vought employees who will have access to your health
information will be those necessary to carry out the proper administration of the plan, including
those in the following organizations:
    •       Benefits Administration
    •       Benefits Design
    •       Benefits Accounting
   •       Legal
Here's how additional information may be shared between the plan and Vought, as allowed
under the HIPAA rules:
   •       The plan or its health insurer may disclose "summary health information" to Vought if
           requested, for purposes of obtaining premium bids to provide coverage under the
           plan, or for modifying, amending, or terminating the plan. Summary health information
           is information that summarizes participants' claims information, but from which names
           and other identifying information have been removed.
    •       The plan or its health insurer may disclose to Vought information on whether an
            individual is participating in the plan, or has enrolled or disenrolled in an insurance
            option offered by the plan.
In addition, you should know that Vought cannot and will not use health information obtained
from the plan for any employment-related actions. However, health information collected by
Vought from other sources, for example under the Family and Medical Leave Act, Americans
with Disabilities Act, disability income programs, or workers' compensation is not protected under
HIPAA (although this type of information may be protected under other federal or state laws).

In certain cases, your health information can be disclosed without authorization to a family
member, close friend, or other person you identify who is involved in your care or payment for
your care. Information describing your location, general condition, or death may be provided to a
similar person (or to a public or private entity authorized to assist in disaster relief efforts). You'll
generally be given the opportunity to agree or object to these disclosures (although exceptions
may be made: for example if you're not present or if you're incapacitated). In addition, your
health information may be disclosed without authorization to your legal representative.

Except as described in the plan’s privacy notice ("Privacy Notice"), other uses and disclosures
will be made only with your written authorization. You may revoke your authorization as allowed
under the HIPAA rules. However, you cannot revoke your authorization if the plan has taken
action in reliance upon it.



                                                   94
Your Rights Under HIPAA
You have the right to request restrictions on certain uses and disclosures of your health
information and the plan's right to refuse.
You have the right to ask the plan to restrict the use and disclosure of your health information for
treatment, payment, or health care operations, except for uses or disclosures required by law. In
addition, you have the right to ask the plan to restrict the use and disclosure of your health
information to family members, close friends, or other persons you identify as being involved in
your care or payment for your care. You also have the right to ask the plan to restrict use and
disclosure of health information to notify those persons of your location, general condition, or
death - or to coordinate those efforts with entities assisting in disaster relief efforts. If you want to
exercise this right, your request to the plan must be in writing.
The plan is not required to agree to a requested restriction. However, if the plan does agree, a
restriction may later be terminated by your written request, by agreement between you and the
plan (including an oral agreement), or unilaterally by the plan for health information created or
received after you're notified that the plan has removed the restrictions. The plan may also
disclose health information about you if you need emergency treatment, even if the plan has
agreed to a restriction.
You have the right to receive confidential communications of your health information:
   •      If you think that disclosure of your health information by the usual means could
          endanger you in some way, the plan will accommodate reasonable requests to
          receive communications of health information from the plan by alternative means or at
          alternative locations.
    •       If you want to exercise this right, your request to the plan must be in writing and you
            must include a statement that disclosure of all or part of the information could
            endanger you.
You have the right to inspect and copy your health information:
   •      With certain exceptions, you have the right to inspect or obtain a copy of your health
          information in a "Designated Record Set." This may include medical and billing
          records maintained for a health care provider; enrollment, payment, claims
          adjudication, and case or medical management record systems maintained by a plan;
          or a group of records the plan uses to make decisions about individuals. However,
          you do not have a right to inspect or obtain copies of psychotherapy notes or
          information compiled for civil, criminal, or administrative proceedings. In addition, the
          plan may deny your right to access, although in certain circumstances you may
          request a review of the denial.
    •       If you want to exercise this right, your request to the plan must be in writing.
You have the right to amend your health information that is inaccurate or incomplete:
   •      With certain exceptions, you have a right to request that the plan amend your health
          information in a Designated Record Set. The plan may deny your request for a
          number of reasons. For example, your request may be denied if the health
          information is accurate and complete, was not created by the plan (unless the person
          or entity that created the information is no longer available), is not part of the
          Designated Record Set, or is not available for inspection (e.g., psychotherapy notes
          or information compiled for civil, criminal, or administrative proceedings).




                                                   95
   •       If you want to exercise this right, your request to the plan must be in writing, and you
           must include a statement to support the requested amendment.
You have the right to receive an accounting of disclosures of your health information:
   •      You have the right to a list of certain disclosures the plan has made of your health
          information. This is often referred to as an "accounting of disclosures." You generally
          may receive an accounting of disclosures if the disclosure is required by law, in
          connection with public health activities, or in similar situations listed in the Privacy
          Notice.
   •       If you want to exercise this right, your request to the plan must be in writing.

Complaints

If you believe your privacy rights have been violated, you may file a complaint with the Secretary
of Health and Human Services and or with the plan. You will not be retaliated against if you file a
complaint. To file a complaint with respect to a violation of your privacy rights, please contact the
Privacy Official or its designee.




                                                 96
                            ADMINISTRATIVE INFORMATION
This section includes administrative information, including plan names, plan administrators, and
plan funding, as well as contacts you may need in certain situations.
                                       Administrative Information
                        Employer Vought Aircraft Industries. Inc.
                                  P.O. Box 655907
                                  Dallas, TX 75265-5907
  Employer Identification Number (EIN) 75-2884072
                     Type of Plan Welfare benefit plan
              Plan Administrator Employee Welfare
                                  Benefits Committee
                                  Vought Aircraft Industries. Inc.
                                  P.O. Box 655907
                                  Dallas, TX 75265-5907
      Agent for Service of Legal Vought Aircraft Industries. Inc.
                          Process c/o Corporate Secretary
                                  Vought Aircraft Industries. Inc.
                                  P.O. Box 655907
                                  Dallas, TX 75265-5907
               Benefit Plan Year July 1 to June 30
                    Plan Number 501


                                    Administrative Facts
       Plan          Plan is insured by:    Claims are                               Plan is funded by 1
                                            administered by:
      Medical Plan   Vought Aircraft Industries, Inc.   Blue Cross Blue Shield of    Vought Aircraft Industries, Inc.
                     self-insures the BCBS Premium      Illinois                     and participant contributions
                     PPO plan                           PO. Box 122
                                                        Chicago, IL 60690
                                                        1-888-979-4514
    Mental Health    Value Options                      Value Options                Vought Aircraft Industries, Inc.
                     340 Golden Shore                   340 Golden Shore             and participant contributions
  and Substance      Long Beach, CA 90202               Long Beach, CA 90202
Abuse Treatment      1-866-269-5800                     1-866-269-5800
             Plan
Prescription Drug    Vought Aircraft Industries, Inc.   Caremark                     Vought Aircraft Industries, Inc.
                     self-insures this plan             P.O. Box 686005              and participant contributions
             Plan                                       San Antonio, TX 78268-6005
                                                        1-866-623-1395
      Dental Plans   Vought Aircraft Industries, Inc.   Unicare                      Vought Aircraft Industries, Inc.
                     self-insures the Unicare plan      233 S. Wacker Drive
                                                        Suite 3900
                                                        Chicago, IL 60606
                                                        1-800-234-9778
                     Vought Aircraft Industries, Inc.   Delta Dental Insurance       Vought Aircraft Industries, Inc.
                     self- insures the plan that is     Company                      and participant contributions
                     administered by Delta Dental       PO. Box 1809
                     USA                                Alpharetta, GA 30023-1809
                                                        1-800-336-8264




                                                        97
                                Administrative Facts (continued)
       Plan           Plan is insured by:     Claims are                                 Plan is funded by1
                                              administered by:
   Basic Life and     For Life Insurance                 For Life Insurance              Vought Aircraft Industries, Inc.
                      The Prudential Life Insurance      The Prudential Life Insurance
    Optional Life     Company                            Company
       Insurance      Group Life Division                Group Life Division
                      P.O. Box 1215                      P.O. Box 1215
                      Newark, NJ 07101                   Newark, NJ 07101
                      1-800-524-0542                     1-800-524-0542
         Disability   Vought Aircraft Industries, Inc.   Metropolitan Life Insurance     Vought Aircraft Industries, Inc.
                      self- insures the plan that is     Company
                      administered by Metropolitan       Metlife Disability
                      Life Insurance Company             P.O. Box 14590
                                                         Lexington, KY 40511
                                                         1-800-300-4296
 Health Care and      N/A                                PayFlex Systems USA, Inc.       Participant contributions
                                                         302 S. 36th Street
 Dependent Care                                          Suite 700
         Flexible                                        Omaha, NE 68131
                                                         1-800-284-4885
       Spending
  Account Plans
         COBRA        Vought Aircraft Industries, Inc.   HM Benefits Administrators      Participant contributions
                                                               th
                      self-insures the medical and       120 5 Avenue Place
                      dental plans offered under         Suite P-6110
                      COBRA                              Pittsburgh, PA 15222

                                                         P. O. Box 535054
                                                         Pittsburgh, PA 15253
1 Vought Aircraft Industries, Inc. and participant contributions are deposited into the trust, and
the trust pays the premiums.




                                                         98
                               How to Claim Your Benefits
If you think you are eligible for a plan benefit, you have to file a written claim. This claim must
follow the procedures required by the Company (the Plan Administrator), the Claims
Administrator, and/or the insurer.
More detailed information about filing claims for specific benefit plans is also found in the earlier
sections of this summary plan description.




If Your Claim Is Denied

If your claim for benefits is denied (either in whole or in part), the claims administrator will send
you a written explanation of why the claim was denied. In the case of an urgent claim, this can
include oral notification, as long as you are provided with a written notice within three days.
This explanation will contain the following information:
•   The specific reason(s) for the denial
•   Specific references to plan provisions on which the denial is based
•   A description of additional material or information that you may need to revise the claim and
    an explanation of why such material or information is necessary
•   A specific explanation of the plan's review and appeal procedures and applicable time limits,
    including a statement of your rights to bring a lawsuit under ERISA.

•   Depending on the type of claim, the explanation will also contain the following information:
•   If the denial is based on an internal rule, guideline, or protocol, the denial will say so and
    state that you can obtain a copy of the guideline or protocol, free of charge upon request
•   If the denial is based on an exclusion for medical necessity or experimental treatment, the
    denial must explain the scientific or clinical judgment for determination, applying the terms of
    the plan to the medical circumstances, or state that such an explanation will be provided
    upon request, free of charge
•   If the denial involves urgent care, you will be provided an explanation of the expedited review
    procedures applicable to urgent claims.

Appealing a Denied Claim

If your claim for health and welfare benefits is denied, you have the right to make an appeal by
following these steps:
First, call the claims administrator for that benefit and ask why your claim was denied. You may
discover that a simple error was made. If so, you may be able to correct the problem right over
the telephone.
If your claim is still denied, write directly to the claims administrator for that benefit (see
Administrative Facts chart, above). Be sure to explain why you think your claim should be paid
and provide all relevant details.




                                                  99
If your claim is denied once again, ask the claims administrator to submit your claim to the claims
administrator's Claims Review Committee.
If your claim is denied by the Claims Review Committee, ask the claims administrator to submit
your claim to the claims administrator's next level Claims Review Committee. Be sure to submit
your request in accordance with the deadlines provided by the Claims Administrator.
If your claim is denied by the final level of the Claims Administrator’s Review Committee, you
may, in a timely manner, request that the Plan Administrator (Vought’s Employee Welfare
Benefits Committee) conduct a final review. The Plan Administrator may be contacted by writing
to: Employee Welfare Benefits Committee, Vought Aircraft Industries, Inc., P.O. Box 655907,
Dallas, TX 75265-5907.
The Plan Administrator must act within 60 days of receiving your appeal. However, in special
cases, the Plan Administrator may be allowed an additional 60-day period and will notify you if
extra time is required. The Plan Administrator sends you the final decision on your appeal in
writing, along with an explanation of the reason(s) for the decision. If no decision is sent to you
within 60 days, your claim is considered denied. The Plan Administrator has the authority to
interpret the plan, and its decision is final and conclusive.

Timing of Your Appeal

If you file a claim for benefits and the claims administrator denies that claim, you have the right to
appeal the denial. The appeal procedures must be exhausted before you can enforce your rights
under ERISA (see “Employee Retirement Income Security Act of 1974" for details).

In the case of medical and dental claims, you have 180 days from the time that you receive the
initial claim denial from the Claims Administrator to file an appeal with the Plan Administrator. In
the case of disability benefits, you have 60 days from the time you receive your denial to file an
appeal.




                                                 100
Additional Information About the Appeals Process

In filing an appeal, you have the opportunity to:
     •       Submit written comments, documents, records and other information relating to your
             claim for benefits
   •       Have reasonable access to and review, upon request and free of charge, copies of all
           documents, records and other information relevant to your claim
   •       Have all relevant information considered on appeal, even if it wasn't submitted or
           considered in your initial claim.


If benefits are still denied on appeal, the notice that you receive from the final review level will
provide:
    •        The specific reasons for the denial
   •       Reference to the plan provisions on which the decision was based
   •       A statement that you may receive, upon request and free of charge, reasonable
           access to, and copies of all documents, records, and other information relevant to
           your claim
   •       A statement describing any additional appeal procedures, and a statement of your
           rights to bring suit under ERISA. (See “Employee Retirement Income Security Act of
           1974" for details.)
   NOTE: If your appeal is denied after exhausting internal review procedures and you want to
   pursue legal action in the courts, you must file your lawsuit within one year of the Plan
   Administrator’s final denial of your appeal. In all cases, you must bring legal action no later
   than three years from the time the claim arises. If you do not meet these requirements, your
   claim will be legally barred.


Depending on the type of claim, the notice that you receive from the final review level will also
contain the following information:
   •       If the denial is based on an internal rule, guideline, or protocol, the denial will say so
           and state that you can obtain a copy of the rule, etc., free of charge upon request
   •       If the denial is based on exclusion for medical necessity or experimental treatment,
           the denial will explain the scientific or clinical judgment for determination, applying the
           terms of the plan to the medical circumstances, or state that such an explanation will
           be provided upon request, free of charge.


At both the initial claim level, and on appeal, you may have an authorized representative submit
your claim for you. In this case, the administrator may require you to certify that the
representative has permission to act for you. The representative may be a health care or other
professional. However, even at the appeal level, neither you nor your representative has a right
to appear in person before the claims administrator or the review panel.




                                                 101
                        COBRA – Continuation of Coverage
Under the Consolidated Omnibus Budget Reconciliation Act (COBRA) of 1985, as amended, if
you lose your health care coverage under certain circumstances, you and your enrolled family
members can continue your group health care coverage by paying for it. The circumstances
include termination of employment (unless due to gross misconduct). Continued coverage rights
apply only to health care coverage, not to other types of benefits (for example, life insurance and
long-term disability insurance).

The following provisions apply:
   • You and your eligible dependents have 60 days from the date coverage ends or the date
        of your COBRA notice, whichever is later, to elect continued participation under COBRA.
        (Each covered dependent may make a separate COBRA election.) You have an
        additional 45 days from the date of your election to pay your first COBRA premium.
   • You and your enrolled family members can continue coverage for a maximum of 18, 29,
        or 36 months, depending on the reason your coverage ended, as shown in the chart that
        follows. If multiple circumstances occur, the maximum period is 36 months.
   • You can continue participation in the Health Care Flexible Spending Account until the end
        of the benefit plan year in which you lose your benefits.
   • If your dependents lose coverage because of divorce, legal separation, or loss of
        dependent status, you (or a family member) must notify the Vought Benefits Center within
        60 days of the event so that they can be mailed a notice about their COBRA rights along
        with enrollment information.
   • To extend coverage beyond 18 months because of disability, you must provide notice of
        the Social Security Administration's determination during the initial 18-month period and
        within 60 days of the date you receive your determination letter.

If you elect COBRA continuation:
     • Initially, you may keep the same coverage category you had as an active employee or
        choose a different category. For example, if your spouse and all your dependents were
        enrolled under the Vought Aircraft Industries, Inc. medical plan, you could choose to
        enroll all, some or none of them under COBRA.
     • Coverage is effective on the date of the event that qualified you for COBRA coverage
        unless you waive COBRA coverage and subsequently revoke your waiver within the 60-
        day election period. In that case, your coverage begins on the date you revoke your
        waiver.
     • You may change your COBRA coverage during the Annual Enrollment period or if you
        have a qualified change in status.
     • You can enroll your newly eligible spouse or child under the same guidelines that apply to
        active employees.

Cost of COBRA coverage

COBRA participants pay monthly premiums for their coverage on the following basis:
  • For health care coverage, premiums are based on the full group rate per enrolled person
     set at the beginning of the benefit plan year, plus 2% for administrative costs. Your
     spouse or child who makes a separate election is charged the same rate as a single
     employee.
  • Health Care Flexible Spending Account contributions can be continued through the end
     of the benefit plan year on an after-tax basis, plus the 2% administrative charge.


                                               102
   •   If you or your enrolled dependent is disabled, as defined by Social Security, COBRA
       premiums for months 19 through 29 may be increased to reflect 150% of the full group
       cost per person.

   The following chart illustrates the COBRA continuation period under certain circumstances:
COBRA CONTINUATION PERIOD
                   Qualifying Event Maximum Continuation Period
                                      Employee         Spouse                 Child
You lose coverage because you         18 months        18 months              18 months
reduce your work hours or take
unpaid leave
You terminate employment for any 18 months             18 months              18 months
reason (except gross misconduct)
You or your dependent is disabled 29 months            29 months              29 months
(as defined by Title 11 or XVI of the
Social Security Act) during the first
60 days after the qualifying event
You die                               N/A              36 months              36 months
You and your spouse legally           N/A              36 months              36 months
separate or divorce
You are already on COBRA and          N/A              36 months              36 months
become disabled and entitled to
Medicare, which causes your
dependents to lose coverage
Your child no longer qualifies as a N/A                N/A                    36 months
dependent

Notification of Eligibility
When you qualify for COBRA because your hours are reduced or your employment is
terminated, you are notified by mail of your COBRA election rights and enrollment instructions.
Your spouse and dependent children are notified of their COBRA election rights when they lose
health coverage with Vought Aircraft Industries, Inc. as a result of your death. If your
dependents lose coverage due to divorce, separation, or loss of dependent status, you must
notify the Benefits Center within 60 days so that a COBRA notice can be sent.

When COBRA Ends
COBRA coverage ends before the maximum continuation period ends if one of the following
occurs:
   • You or your dependent becomes covered under another group health plan not offered by
        Vought Aircraft Industries, Inc. after the date of your COBRA election (unless the plan
        has preexisting condition limitations that affect the enrolled person)
   • You or your dependent becomes enrolled in Medicare after the date of your COBRA
        election (if you or your dependent is not entitled to or enrolled in Medicare, you or your
        dependent can continue coverage under COBRA until the maximum continuation period
        ends)
   • You or your dependent fails to make timely monthly payments




                                               103
•   After your initial 18-month period, you or your dependent ceases to be considered
    disabled for Social Security purposes and is not otherwise eligible for a longer
    continuation coverage period
•   Vought Aircraft Industries, Inc. ceases to provide benefits to any employee.




                                          104
USERRA Update
If you have to take leave to perform service in the uniformed services, you may also qualify to
purchase continuation coverage for yourself and any covered dependents pursuant to the
Uniformed Services Employment and Reemployment Rights Act of 1994 (“USERRA”).
Continuation coverage rights under USERRA are similar to COBRA continuation coverage rights
discussed in the previous section.

To qualify for USERRA continuation coverage, you must be performing duty on a voluntary or
involuntary basis in a uniformed service under competent authority. Service includes active duty,
active and inactive duty for training, National Guard duty under Federal law, and a period for
which you are absent for an examination to determine your fitness to perform those duties.
Service also includes a period for which you are absent to perform funeral honors duty as
authorized by law and services as an intermittent disaster-response appointee of the National
Disaster Medical System. Uniformed services means the following: Armed Forces of the United
States; Army National Guard; Air National Guard; the commissioned corps of the Public Health
Service; and any other category of persons designated by the President in time of war or national
emergency. Should these definitions under Federal law change and affect eligibility for
continuation coverage, coverage will be provided in accordance with such changes.

If you qualify to continue coverage under USERRA, you may continue coverage for yourself and
any covered dependents for whom you elect coverage for up to 24 months from the date your
coverage would end because of your leave. Your USERRA coverage will end earlier than the
end of the 24-month period if you fail to pay the required premiums on a timely basis; you fail to
return to work with the time required under USERRA; or you lose your USERRA rights under the
terms of that statute.

COBRA and USERRA coverage begin at the same time and run concurrently. As noted in the
COBRA section, COBRA coverage can continue for up to 18 months and is subject to extension
and early termination in certain circumstances that do not apply under USERRA.

If you elect COBRA coverage on a timely basis and are also eligible for USERRA continuation
coverage, your COBRA election will also be treated as an election under USERRA. All of the
rules and procedures regarding COBRA coverage apply to USERRA coverage, except that the
deadline for electing continuation coverage will not apply to USERRA coverage if, under the
circumstances, if was unreasonable or impossible for you to make a timely election of coverage
(for example, emergency military deployment). Also, if your military leave is for less than 31
days, you will be required to pay only the normal employee contribution for the level of coverage
you continue for that period.




                                               105
                                     Glossary
–A–
Acute care Treatment for an immediate and severe episode of an illness, an injury related to an
accident or other trauma or recovery from surgery. Typically, acute care is provided in a
hospital. Unlike chronic care, acute care often is needed for only a short time.
After-tax contributions Contributions for certain benefits that are deducted from your paycheck
after federal, state and local taxes are withheld.
Alternative care Unconventional health care procedures, services, or courses of treatment,
such as acupuncture or acupressure. Typically, the plan does not cover alternative care.
Anabolic drugs A group of synthetic hormones used to increase constructive metabolism that
are derived from or closely related to androgen testosterone.
Annual enrollment period A specific period of time within each benefit plan year during which
you can enroll in the benefits described in this guide or change your current elections.
Annual maximum The maximum number of treatments or services or amount of benefits that
you or your enrolled dependents can receive each benefit plan year. Annual maximums vary by
benefit plan.
Annual restoration The amount the Premium PPO plan restores to your lifetime maximum
benefit each benefit plan year.
Annual salary For life insurance purposes, your gross straight-time pay for regularly scheduled
hours each week. This amount does not include bonuses, overtime, incentive compensation
allowances, or other forms of special compensation.
Attention deficit disorder (ADD) A condition characterized by learning or behavior problems,
difficulty sustaining attention, impulsive behavior (as in speaking out of turn), or excessive or
uncontrollable activity.
Automatic payroll deductions Costs that are deducted from your paycheck before your "net"
amount is calculated.
Aversion therapy Therapy intended to induce dislike for certain habits or antisocial behavior by
using association with a noxious and/or graphic stimulus.

–B–
Basic benefits The benefits you receive automatically as an eligible Vought Aircraft Industries,
Inc. employee. The company pays the full cost of these benefits.
Before-tax contributions Contributions for certain benefits that are deducted from your
paycheck before federal, state and local taxes are withheld.
Beneficiary The person(s) that you designate to receive your life insurance benefits when you
die.
Benefit levels Levels of benefits that a plan option offers.
Benefit plan options The various options available to you and your family within the Vought
Flexible benefits Program.
Benefit plan year The 12–month period from July 1 through June 30. The benefit plan year
applies in determining when you can become a participant in the benefit plan options. For the
medical and dental plan options, the benefit plan year is the period during which your
deductible, out-of-pocket maximum and annual maximums are tracked.
Benefits representatives The trained Vought staff who can assist you with your benefit
questions.
Bitewing X-rays A simultaneous X-ray of teeth in both the upper and the lower jaw.
Brand name prescription A prescription drug that is protected by patent and is marketed under
a specific name.



                                              106
Bridges (dental)
   • Fixed – A set of one or more false teeth cemented in place in the mouth. Retainers
      secure the bridge to the teeth.
   • Fixed-removable – A set of false teeth the dentist can remove but the patient cannot.
   • Removable – A set of false teeth, usually held by clasps, that the patient can remove.

–C–
Carrier A company that underwrites or administers a range of health benefit programs. May
refer to an insurance company or a managed health plan.
Case management A process in which a registered nurse is assigned to an individual patient to
assess, coordinate, monitor and evaluate the options and services required to meet the patient's
health care needs. Case managers access all available resources to promote quality and cost-
effective outcomes.
Certificate of Creditable Coverage A document that provides proof of your previous medical
coverage.
Child care credit A federal income tax credit for eligible dependent care expenses. Tax credits
reduce dollar for dollar the amount of taxes you owe.
Child(ren) For the purposes of the medical and dental plan options, children include:
    • Your biological children
    • Legally adopted children
    • Stepchildren living with you
    • Children supported only by you and living permanently in your household
    • Dependents who are eligible pursuant to a qualified medical child support order
        QMCSO)
Claim Any charge for services submitted for payment to the claims administrator by either you
or a service provider.
Claims administrator The outside firm with which Vought Aircraft Industries, Inc. contracts to
administer benefits under the guidelines of the plan and generally accepted insurance practices.
The claims administrator may collect premiums, pay claims and/or provide administration
services. See the section on Plan Administration for a list of claims administrators for each
benefit plan option.
Coinsurance Your percentage share of the cost of eligible expenses. For example, a
coinsurance arrangement under a medical plan could be 60%/40%, in which case the employer
pays 60% of the usual, reasonable and customary (URC) expenses and you, the participant,
pay 40%. You pay coinsurance after you meet the individual or family deductible.
Collective bargaining agreement A contract between a union and an employer covering
benefits, wages and working conditions.
Coma/comatose A state of complete mental unresponsiveness, with no evidence of
appropriate response to stimuli.
Congenital disorder A condition that existed at or dates from birth.
Consolidated Omnibus Budget Reconciliation Act (COBRA) A federal law that requires
employers to offer continued health insurance coverage to employees and their dependents
when their eligibility for group health insurance coverage ends, such as at termination of
employment or divorce. COBRA applies to your medical, dental and Flexible Spending Account
benefits.
Contributions The amount you pay toward the cost of the benefits in which you enroll.
Typically, contributions are deducted from your paychecks. Refer to your paycheck stub for
information on contributions.
Conversion policy An individual life insurance policy to which you can transfer your Vought
Aircraft Industries, Inc. life insurance coverage after your employment ends. You do not have to
provide evidence of insurability (EOI) for a conversion policy.



                                              107
Coordination of benefits A method of coordinating reimbursements for health care treatment
and supplies when you or a family member is enrolled in more than one health care plan – for
example, medical and auto insurance or the Vought Aircraft Industries, Inc. plan and your
spouse's employers plan.
Copayment A fee you pay to a provider at the time you receive care. (If you have a Flexible
Spending Account and your provider accepts Master Card, you may be able to use your debit
card for your copay and avoid filing a claim for reimbursement of your costs.)
Cosmetic Surgery Surgery performed mainly to change a person's appearance. It includes
surgery performed to treat a mental, psychoneurotic, or personality disorder through change in
appearance. Cosmetic surgery and services related to complications arising from non-covered
cosmetic surgery are not covered.
Coverage categories The number of family members, such as employee only or employee and
family, which you enroll in the benefit plans. Coverage categories vary under the Vought Aircraft
Industries, Inc. benefit plans. For details, refer to the section entitled "Coverage Categories" in
each chapter of this guide.
Covered expenses Expenses that may be used as the basis for the payment of benefits by the
plan.
Covered person Employees and dependents who are enrolled in the plan
Crown (dental) An enamel or metal covering of a tooth that replaces a natural tooth.
Custodial care Care of a patient that:
        • provides a level of routine maintenance for the purpose of meeting personal needs
        • can be provided by a nonprofessional who does not have professional qualifications,
            skills, or training, and
        • includes, but is not limited to, help in walking, getting into or out of bed, bathing,
            dressing, eating, and other functions of daily living; administration of or help in using
            or applying medications, creams, or ointments; routine administration of medical
            bases after regimen of therapy has been set up; routine care and maintenance in
            connection with equipment and supplies, such as casts and braces, indwelling
            catheters, colostomy and ileostomy bags, routine tracheostomy care, and general
            supervision of exercise programs; and routine care of a patient, including functions
            such as changing dressings, diapers, and sheets and periodic turning and
            positioning in bed.
        • Even if a patient is under the care of a supervising or attending physician who
            prescribes services that are provided by a registered nurse, confinement and care
            may nonetheless be defined as “custodial” and ineligible for benefits.

–D–
Deductible The amount of money you pay each benefit plan year before your plan begins to
pay benefits for eligible expenses.
Dependents Family members who may be eligible for coverage under the plan. This generally
includes a spouse and all eligible children. If your spouse is employed by a company that
provides employees health care benefits, he or she must be enrolled in that plan to be eligible
for coverage under the Premium PPO plan.
Default coverage The benefits you automatically receive if the Vought Benefits Center does not
receive your benefit elections within 31 days of your date of hire.
Denture A device replacing some or all teeth; it may be fixed or removable.
Detoxification (Acute Inpatient Substance Abuse Treatment) – generally indicated in the
following situations:
       • Life or vital bodily function is threatened as a result of acute, excessive use, or the
       consequences of withdrawal from a substance(s) and




                                                108
       • Failure to use acute inpatient treatment can be expected to significantly increase the
       risk of loss of life or permanent impairment of bodily function once use has stopped.
       Acute inpatient detoxification can occur in acute inpatient psychiatric units, acute
       inpatient medical-surgical units, and residential substance abuse rehabilitation
       programs.
       This level of treatment requires comprehensive and intensive medical evaluation and
       treatment by experts within a 24-hour structured and supervised setting.
Diagnosis Identification of a condition by examination, testing and/or analysis.
Diagnostic and Statistical Manual of Mental Disorders (DSM HI-R/IV) A code book of mental
disorder symptoms and illnesses.
Diagnostic tests Laboratory tests conducted in order to make a diagnosis.
Disability The inability to perform the duties of your regular occupation during the first 18
months of an illness or injury. After 18 months, you are considered disabled if you cannot
perform the duties of any job for which you are qualified through training, education, experience
and past earnings.
Disabled employee One who meets the definition of disability under the plan.

–E–
Eligible dependents Dependents eligible for benefits coverage under the plan, such as your
spouse and unmarried children.
Eligible expenses Charges for services or supplies for which the medical or dental plan options
pay benefits.
Emergency A sudden serious medical condition for which failure to receive immediate care
could place your life in danger or cause serious impairment of bodily functions.
Employee assistance program (EAP) A confidential counseling and referral service, offered
by Vought Aircraft Industries, Inc. and available to you and your family.
Employee Retirement Income Security Act of 1974 (ERISA) A federal law that requires
reporting and disclosure of group health and welfare, savings and pension plans.
Employer contribution The amount Vought Aircraft Industries, Inc. contributes toward the
premium cost of your benefits.
Endodontics Root canal therapy.
Enrollment materials The packet of information you receive each year during Annual
Enrollment. Your enrollment materials describe the benefit plan options available to you and
your family and the cost of those options.

Estate The assets and liabilities left by you when you die.
Evidence of insurability (EOI) Specific documents and/or procedures that provide evidence
that you and/or your dependents are in good health at the time you enroll for optional life or
long-term disability insurance benefits.
Experimental A procedure, service or supply that does not conform to accepted medical
practice, is not approved by the appropriate governing body, such as the Food and Drug
Administration, or has not completed scientific testing or whose effectiveness has not been
established. Typically, experimental procedures, services or supplies are not covered under the
medical or dental plan options.
Explanation of benefits (EOB) A statement from a claims administrator or insurance company
that describes services or treatments performed, dollar amounts paid by the plan, benefit limits
and denials. If you have coverage under more than one health care plan, you must submit a
copy of your EOB along with your claim for reimbursement of expenses. In addition, it is
important to keep a copy of your EOBs in your personal files for reference.
Extraction The removal of a tooth.




                                              109
–F–
Family deductible A deductible that is satisfied by the combined expenses of all enrolled family
members.
Fiduciaries The people or entities responsible for operating a plan. At Vought Aircraft, plan
fiduciaries may include employees who make certain discretionary decisions about the
management or administration of the plans. Fiduciaries also may include outside investment
advisors and trustees.
Fillings Material used to fill spaces or cavities in teeth.
(FSAs) Flexible Spending Accounts Two accounts, the health care FSA and the dependent
day care FSA, which allow employees to pay certain health and dependent care expenses with
tax-free dollars.
Funding The amount of revenue required to finance a benefit program.

–G–
Generic drug A copy of a brand name drug that no longer is protected by a patent. Generic
drugs typically serve the same purpose as the original and are less expensive.
Group The employer, union, trust, association or organization through which you and your
dependents are entitled to benefit coverage. In this case, the group is Vought Aircraft.
Group rates The discounted insurance rates offered to an employer, union, trust, association or
organization.

–H–
Health coverage Coverage that pays benefits for an eligible illness, injury or health care
condition. Coverage may include disability, dental, medical, vision and hearing care and
accidental death coverage.
Health Insurance Portability and Accountability Act (HIPAA) A federal law that places limits
on exclusions a health care plan can place on an individual for preexisting conditions, among
other provisions.
Hemiplegia The total loss of the use of one side of the body.
Home health care Care provided in your home by an agency licensed by the state in which you
live. The claims administrator must preauthorize home health care. Benefits may be approved
for individuals who are homebound for medical reasons, physically unable to obtain necessary
medical care as an outpatient, or under the care of a physician.
Hospital An institution accredited under the hospital accreditation program of the joint
Commission on the Accreditation of Healthcare Organizations, or any other institution operated
pursuant to law, which is under the supervision of a staff of physicians with 24-hour a day
nursing services, and primarily engaged in providing:
         •  General inpatient medical care and treatment of sick and injured persons through
            medical, diagnostic, and major surgical facilities, all of which must be provided on its
            premises or under its control or
         •  Specialized inpatient medical care and treatment of sick or injured persons through
            medical and diagnostic facilities (including X-ray and laboratory) on its premises,
            under its control, or through a written agreement with a hospital or with a specialized
            provider of those facilities.
     “Hospital” does not include an institution (or part thereof) that is principally a convalescent
     hospital, extended care facility, or skilled nursing facility or is operated primarily as a school
     or place of rest or furnishes primarily domiciliary or custodial care.
Hospice care Medical care provided to a terminally ill patient and emotional support for family
members during the last months of a patient's life. Medical care emphasizes controlling the
patient's pain and other symptoms rather than attempting to find a cure or prolong life. A
licensed agency provides hospice care to the patient, either as an inpatient in a licensed
hospice center or a private-duty nursing facility or at home as an outpatient.


                                                 110
Hospital admission Entry for an overnight (or longer) stay in a hospital facility.

–I–
Identification card A card issued to each enrolled person by an insurance company, health
plan or claims administrator. The card identifies the person as eligible for reimbursement of
eligible expenses under the benefit plan option. Keep your identification card with you at all
times.
Illness A physical or mental ailment. This term includes pregnancy.
Independent contractor A non-employee who enters into a contract to furnish supplies or work
at a certain price or rate.
Individual policy Insurance for individuals and their dependents that is separate from a group
insurance plan. Also see conversion policy.
Ineligible expenses Expenses that are not covered by the plan. For details, see the section
entitled "Ineligible Expenses."
Injury Accidental damage to some part of the body.
In-network (or network) provider A health care provider (such as a physician, dentist, hospital
or laboratory) that enters into a contract with the health plan to provide care at a specified
discounted rate. Typically, the plan options pay more when you receive treatment from a
network provider.
In-network benefits The level of benefits you receive when you and/or your enrolled
dependents are treated by network providers. Typically, the plan pays more when you receive
treatment from an in-network provider.
In-network care Care provided or authorized by a network provider. Typically, the plan pays
more when you receive treatment from a network provider.
Inpatient A patient admitted to the hospital for an overnight stay.
Installment payments Payments of equal amounts made over a period of time.
Investigational See Experimental.


–L–
Lancet A sharp-pointed and commonly two-edged surgical instrument used to make small
incisions.
LASIK A form of laser eye surgery.
Legal guardian A person designated by the court to be legally responsible for a minor
child(ren) in place of a parent.
Licensed childcare facility Any state-licensed facility, other than a family day care home, that
provides non-medical supervision for children. The care must be in a group setting and for less
than 24 hours a day.
Licensed physician A person who is legally qualified to practice medicine.
Life insurance Insurance that pays benefits to your beneficiary when you die.
Lifetime maximum The maximum amount payable during your lifetime under all Vought Aircraft
Industries, Inc. health plans for active employees.
Lump sum Payment of your benefit in its entirety at one time.

–M–
Mail order prescriptions Long-term or maintenance prescription medication that you can
purchase through the Caremark Mail Service Program.
Maintenance medication Drugs that are taken on a regular basis for a chronic condition such
as high blood pressure or diabetes.
Managed care A structured system of health care delivery that offers patients access to quality,
cost-effective health care by assessing the utilization and cost of services and measuring



                                               111
provider performance. All the Vought Aircraft Industries, Inc. health care plans are managed
care plans.
Medicaid/Medi-Cal A government program administered and operated individually by
participating state and territorial governments that provides medical benefits to eligible low-
income individuals. Federal and state governments share the cost of the program.
Medical leave of absence An absence from work due to illness or injury for more than 10
consecutive days.
Medically necessary In general, services or supplies that meet the following criteria:
     • Are appropriate and necessary for the symptoms, diagnosis or treatment of the medical
        condition, disease, injury or illness.
     • Are provided for the diagnosis or direct care and treatment of the medical condition,
        disease, injury or illness.
     • Meet the standards of sound medical practice in the medical community in the service
        area and that, if omitted, would adversely affect the patient's medical condition.
     • Are not primarily for the convenience of the patient or health care provider.
     • Are the most appropriate level or amount that can safely be provided.
The medical and dental plans pay benefits for services, drugs, and supplies that are considered
medically necessary, as determined by the claims and/or plan administrator. The fact that a
physician or other health care provider prescribes or orders the service or supply does not make
it a medically necessary, eligible expense.
Medicare A federally administered, nationwide health insurance program that covers the cost of
health care for individuals who are eligible for Social Security benefits. As a Vought Aircraft
Industries, Inc. employee, you and the company pay a premium each pay period for your future
Medicare benefits.
Mental Health Refers to treatment of neurosis, psychoneurosis, psychopathy, psychosis, or
mental or emotional disease or substance abuse disorder.


–N–
Network A group of physicians, dentists, hospitals, labs and other health care providers who
agree to treat plan participants at a specified discounted rate so they can be affiliated with the
plan.
Network (or in-network) provider A health care provider (such as a physician, dentist, hospital
or laboratory) that enters into a contract with the health plan to provide care at a specified,
discounted rate. Typically, the plan pays more when you receive treatment from a network
provider. See network specialist.
Network specialist A specialist who enters into a contract with the health plan to provide care
at a specified, discounted rate. Typically, the plan pays more when you receive treatment from a
network specialist. See Specialist.
Non-duplication of benefits A method of combining reimbursements for health care treatment
and supplies when you or a family member is enrolled in more than one health care plan, such
as the Vought Aircraft Industries, Inc. plan and your spouse’s employer’s plan. Under this
method, payments from the Vought Aircraft Industries, Inc. plan plus payments from the other
plan do not exceed the amount Vought Aircraft Industries, Inc. would have paid if there were no
other coverage. Non-duplication of benefits applies to medical, mental health and substance
abuse and prescription drugs.
Non-participating pharmacy A pharmacy that has not entered into a contract with Caremark to
dispense prescription drugs at a specified, discounted rate.
Nurse A professionally trained individual who is either a Registered Nurse (R.N.), a Licensed
Practical Nurse (L.P.N.), or a Licensed Vocational Nurse (L.V.N.), other than a nurse who
resides in the covered person's home or is a member of the covered person's family



                                               112
–O–
Obstetrician/gynecologist (OB/GYN) A physician who specializes in women's health,
including pregnancy and child birthing.
Opt out The choice to not enroll yourself and your eligible family members in a benefit plan.
Optional benefits The additional benefits you can purchase for yourself and your family. You
and Vought Aircraft Industries, Inc. share the cost of these benefits.
Oral surgery Surgical treatment involving the teeth, mouth or jaw.
Orthodontic care Treatment to correct the position of teeth.
Out-of-network benefits The benefits you receive when you use a health care provider who is
not a network provider. Typically, you pay more when you use an out-of-network provider.
Out-of-network care The care you receive from a provider who is not part of the network.
Typically, you pay more when you receive out-of-network care.
Out-of-network provider A health care provider who has not entered into a contract with a plan
to be a member of the plan's network. You pay more when you receive care from an out-of-
network provider.
Out-of-pocket costs The amount of your health care expenses not covered by the benefit plan
that you pay. Out-of-pocket costs typically include copayments, deductibles, coinsurance and
ineligible expenses.
Out-of-pocket maximum The limit on your total copayments, deductibles and coinsurance
under a benefit plan.
Outpatient care Health care you receive from a clinic, emergency room or other health facility
without being admitted as an overnight patient.

–P–
Paralysis The total loss of the use of an arm or leg.
Paraplegia The total loss of the use of the lower half of the body, including both legs.
Participant An employee (or the employee’s enrolled dependent) who is covered by the plan
Participating pharmacy A pharmacy that is a member of Caremark's network of pharmacies
and agrees to dispense prescription drugs to you according to the provisions of the Caremark
plan.
Payment limits The maximum number of treatments or services or maximum amount of
benefits that you or your enrolled dependents can receive each benefit plan year. This is the
same as a benefit plan year maximum.
Periapical disease Disease of the tissues around the root of the tooth, including the gums and
bones.
Periodontics Treatment of the gums and supporting structures of the teeth.
Permanent disability For purposes of long-term disability insurance benefits, a disability from
which you are not expected to recover.
Photorefractive keratectomy (PRK) A type of corrective eye surgery.
Physician A person who is legally qualified to practice medicine.
Plan administrator The person or group of persons designated by the legal plan document as
responsible for most day-to-day activities of the plan. These activities include determining
eligibility for benefits, processing claims and appeals regarding claims, maintaining plan
records, and distributing information about the plan to participants. The Employee Welfare
Benefits Committee is the plan administrator.
Plan document The legal document that contains all the provisions, conditions and terms of
operation of a pension, savings or health and welfare plan. It may be written in technical terms.
This differs from a summary plan description (SPD), which must be written in a way that an
average participant of the plan can understand.
Plan year Vought Aircraft's benefit plan year is July 1 through June 30.
Portable Under the PPO plans, the ability to receive care from a network provider in any state
in the United States.


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Preapproval (Value Options) The advance review and approval of proposed mental health
and/or substance abuse care through Value Options. Without pre-approval, the plan pays no
benefits.
Pre-certification The advance review and approval of proposed hospital stays and specific
health care services.
Predetermination of benefits An application for approval of dental treatment and an estimate
of eligible expenses - before treatment is received.
Preexisting condition Any physical or mental condition that you or a dependent had within a
specific period of time immediately before enrolling in a health plan. There may be limits to
health care benefits for your dependents who have a preexisting condition, even if they did not
receive treatment for the condition.
Preferred provider organization (PPO) A group of health care providers who enter into a
contract with Vought Aircraft's PPO plans to provide services to participants at a specified,
discounted fee.
Premium The contribution you make for certain benefit plans. The health plans have one
premium rate for you only and another, separate premium rate or rates for you with dependents.
Premiums may change periodically.
Premium PPO plan The name of the company health care program that includes in-network,
and out-of-network benefits through an administrative services contract with Blue Cross Blue
Shield and a separate psychiatric and substance abuse network through an administrative
services contract with Value Options. There are different carriers for prescriptions and dental
care.
Prenegotiated rates Discounted rates that a health care provider agrees in advance to charge
for services and care provided to plan participants.
Primary plan The plan that pays benefits first if you are enrolled in more than one medical or
dental plan.
Private Duty Nursing – Services provided by an R.N., L.V.N., or L.P.N. And covered only when
they are pre-certified and medically necessary for the care and treatment of injury or illness.
Prophylaxis Professional teeth cleaning; may include scaling to remove stains and tartar from
teeth.
Prosthodontics Treatment to replace missing teeth or other dental structures.
Provider (medical) A hospital, skilled nursing facility, ambulatory surgical facility, physician,
practitioner, laboratory or other individual or organization that is licensed to provide medical or
surgical services, supplies and/or accommodations.
Provider directory A list of all health care providers that are members of a health plan's
network. You can find provider directories through the Excel Web site or, to request a copy, call
the Vought Benefits Center and select your health care provider through the phone menu.

–Q–
Quadriplegia The total loss of the use of the body from the neck down.
Qualified change in status A life event that changes your need for benefits, such as marriage,
divorce or birth of a child. Within 60 days of a qualified change in status, you can change your
before-tax benefits. Any changes to your benefit selections must be consistent with the status
change.
Qualified Medical Child Support Order (QMCSO) An order or judgment from a state court or
administrative agency that directs the plan administrator to cover a child for benefits under the
plan. Applies to medical and dental benefits.

–R–
Radial keratotomy A type of corrective eye surgery.
Recalled When you are rehired after being terminated for lack of work or a reduction in
workforce.


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Referral An arrangement, usually made by your primary care physician, under which you can
be evaluated and treated by another provider, typically a specialist.
Rehabilitation benefit A benefit under the long-term disability plan that facilitates your
transition back to work if you become disabled.
Rehabilitation therapy Therapeutic treatment to restore the use of a part of the body or bring it
to a condition of health or useful and constructive activity.
Rehired A Vought Aircraft Industries, Inc. employee hired again after terminating employment.
A rehired employee must make new benefit elections.
Retail prescription Prescription medication that you can purchase through a retail pharmacy.
When you purchase retail prescriptions through a Caremark participating pharmacy, the plan
pays more. You can purchase up to a 30-day supply of prescriptions at a retail pharmacy versus
a 90-day supply through the mail order plan. See participating pharmacy and mail order
prescriptions.
Rolfing Muscle massage intended to serve as both physical and emotional therapy.

–S–
Secondary plan If you are enrolled in more than one medical or dental plan, the plan that pays
benefits after the primary plan. See Primary Plan.
Service area (network area) The geographic area, usually based on ZIP code, in which you
must live to be eligible to participate in a plan.
Skilled nursing facility A specially qualified facility that has the staff and equipment to provide
skilled nursing care, or rehabilitation and related health services. Care at the facility is provided
by, or under the supervision of, licensed nursing personnel. Skilled rehabilitation services may
include such services as physical therapy performed by or under the supervision of a
professional therapist.
Social Security A federal government program established in 1935 to provide old-age and
survivors insurance, contributions to state unemployment insurance and old-age assistance.
Specialist A physician who, based on education and qualifications, concentrates on a particular
specialty of medicine.
Subrogation Vought Aircraft's or the insurance company's right to recoup benefits paid to you
by a third party for your medical or dental expenses; for example, an automobile insurance
policy from an automobile accident.
Summary plan description (SPD) A written statement required by ERISA that describes a plan
in easy-to-read language. It includes a statement of eligibility, coverage, employee rights and
claims appeal procedures. This guide is the summary plan description for your Vought Flexible
benefits Program.

–T–
Term insurance A type of life insurance that pays benefits in a lump sum only if you or enrolled
dependents die while you are a Vought Aircraft Industries, Inc. employee and, in the case of
optional life insurance, so long as you pay the premiums. Term insurance policies do not build
up a cash value.
Truss A device worn to relieve a hernia through the application of pressure.
Trust agreement An agreement between the plan administrator and the trustee (the person or
entity named to control and manage benefit plan assets).

–U–
Usual, reasonable and customary (URC) fee The "going rate" for medical and dental services
in your geographic area, as determined by the claims administrator. The medical and dental
plans pay benefits up to the usual, reasonable and customary fee. Expenses that exceed URC
limits do not apply to out-of-pocket maximums. You pay 100% of expenses over the URC fee.
When you receive care from a network provider, expenses never exceed the URC limit.


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–V–
Vought Flexible Benefits Program The benefits program Vought Aircraft Industries, Inc. offers
employees. Employees are able to select a benefits package suited to their and their
dependents’ needs.
Vesting The process by which you obtain a guaranteed right to a benefit when you retire,
terminate your employment, become disabled or die.
Vought Benefits Center A telephone center staffed with trained benefits service
representatives who can provide answers to your benefit questions or direct you to other
resources. You can reach the Vought Benefits Center at 1-866-689-5999 Monday through
Thursday from 8 a.m. to 8 p.m. and on Friday from 8 a.m. to 4:30 p.m. Central time. The Vought
Benefits Center is closed on company holidays.
Vought Aircraft Industries, Inc. Medical Department Medical professionals employed by
Vought Aircraft Industries, Inc.

–W–
Waive coverage The decision to elect no coverage for yourself and your family.
Waiver of premium Life insurance coverage option that allows a life insurance participant who
becomes disabled or seriously ill to not pay the premiums.
Whole life insurance An insurance policy that builds up a cash value as premium payments
accrue.
Workers' compensation Medical and disability insurance benefits for an injury, illness, or
disease that arises out of and in the course of your employment. Employers such as Vought
Aircraft Industries, Inc. finance workers' compensation insurance, and it is a required benefit in
most states.
Working spouse rule A Vought Aircraft Industries, Inc. rule that requires your spouse to enroll
in his or her employer's health care plan if the employer pays 50% or more of the cost of health
care coverage. The rule applies even if your spouse-employer offers only one option, such as a
health maintenance organization.




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