AMSEC Employees 401(k) Profit Sharing Plan - Benefits Connect

AMSEC LLCSummary Plan DescriptionAMSEC Employees 401(k) Profit Sharing Plan

Top Heavy Rules ....................................................................................................................... 22Qualified Domestic Relations Order .......................................................................................... 22Unclaimed Benefits ................................................................................................................... 23Incapacity of Participant or Beneficiary ..................................................................................... 23Charges, Deductions, and Liens Therefore ................................................................................. 23IX. STATEMENT OF RIGHTS UNDER THE EMPLOYEE RETIREMENT INCOMESECURITY ACT OF 1974 ...................................................................................................... 24Receive Information About Your Plan and Benefits ................................................................... 24Prudent Actions by Plan Fiduciaries........................................................................................... 24Enforce Your Rights .................................................................................................................. 24Assistance with Your Questions................................................................................................. 25X. MISCELLANEOUS TOPICS ...................................................................................................... 25How Does This Plan Affect My Social Security Benefit? ........................................................... 25What if I Receive an Overpayment of Benefits? ......................................................................... 25What Are the Federal Income Tax Consequences? ..................................................................... 26What Are the Tax Consequences Prior to Distribution of Benefits? ............................................ 26What Are the Tax Consequences of Distributions? ..................................................................... 26How Is the Plan Administered? .................................................................................................. 28Has the Plan Been Approved by the Internal Revenue Service as a Qualified Plan? .................... 29Is There Any Additional Information I Should Know About Our Plan? ...................................... 29XI. CONCLUSION ........................................................................................................................... 30March 2011AMSEC SPD

THIS DOCUMENT CONSTITUTES PART OF A PROSPECTUS COVERING SECURITIESTHAT HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933.I. INTRODUCTIONThis Summary Plan Description summarizes the important provisions of the AMSEC Employees401(k) Profit Sharing Plan (“Plan”). This Plan has been adopted by Huntington Ingalls Industries, Inc.(the “Parent Company”) to provide a tax-qualified income deferral arrangement for Participants and toallow participating Employees to acquire additional benefits through company matching contributions.The Plan is maintained by the Parent Company for the benefit of certain individuals employed byAMSEC LLC (“AMSEC”), a subsidiary of the Parent Company. The Parent Company and AMSECwere previously subsidiaries of the Northrop Grumman Corporation, at which time the Plan wassponsored by AMSEC. On March 31, 2011, the Northrop Grumman Corporation spun-off the ParentCompany and its subsidiaries, including AMSEC, and the Parent Company became the sponsor of thePlan.This summary does not determine rights under the Plan, but is intended only to answer the mostfrequently asked questions about the Plan and to provide a description of how the Plan operates.The official Plan document sets forth your rights and obligations under the Plan. Nothing in thisSummary Plan Description should be considered as altering or affecting the provisions of thePlan document itself. Also, the Plan document may be amended without prior notice and thisSummary Plan Description may not be updated until a date later than the effective date of aPlan amendment.In very general terms, the Plan operates as follows: You may defer part of your compensation byhaving it contributed directly to the Plan, where it is maintained in your Deferral Account. Youreduce the amount of your compensation that is taxed to you by the amount you defer to the Plan.AMSEC may also elect to contribute cash to the Plan to match a percentage of your contributionsand/or to allow the Plan to satisfy legal requirements. These matching contributions are allocated toyour Company Contribution Account and are immediately vested. In addition, AMSEC maycontribute profit-sharing contributions to the Plan in an amount (determined annually) that is thenallocated to your Company Contribution Account on the basis of your eligible compensation for theyear. Your eligible compensation includes your regular salary, wages, overtime, shift differential,hazard pay and similar payments, pay while on leave or vacation, special pay approved by theCompany pursuant to its policies for extended work by salaried employees, any military differentialpay you receive from the company while serving on active duty to make up for some or all of thedifference between your active duty military pay and your higher civilian pay, post-terminationpayments for accrued vacation or sick leave that are paid by the later of the 2-1/2 months aftertermination or December 31 st of the year of termination, and any retroactive pay adjustments. Itexcludes regular bonuses. All your Accounts in the Plan are held in trust by the Plan Trustee,currently Vanguard Fiduciary Trust Company (“Vanguard”), and invested in the investmentalternative(s) you selected or that are designated for all or a portion of your Accounts.You are not taxed on your deferred compensation, the amount allocated to your Accounts, or anyincrease in value of your Accounts until these amounts are distributed to you from the Plan.March 20111AMSEC SPD

The specific terms of the Plan are set forth in the Plan document itself, which is the document thatgoverns the rights of Participants under the Plan. However, because it is not feasible to set forth in thePlan document all of the many details and procedures involved in administering the Plan, a committeeappointed by the Board of Directors of the Parent Company (referred to in this Summary PlanDescription as the “Committee” or “Plan Administrator”) has been given the authority to establishprocedures for various Plan administrative functions and to interpret Plan provisions. The day-to-dayadministration of the Plan is carried out by AMSEC’s Director of Human Resources or designee.The examples in this document are for illustration purposes only and in no way guarantee or predictactual circumstances.II. ELIGIBILITY AND PARTICIPATIONW hat I s the P lan’ s E ffective Date?The Plan was originally adopted by American System Engineering Corporation effective July 1, 1981.Additional amendments have been made since that date. This Summary Plan Description explains theamended and restated Plan in effect as of March 31, 2011, which is sponsored by the Parent CompanyAm I E ligible T o Par ticipate?Receipt of this document does not entitle you to automatically participate in the Plan. You are eligibleto participate in the Plan if you are an employee of AMSEC, as soon as you are hired, unless you fallinto one of the categories below:1. You are covered by a collective bargaining agreement that does not provide for coverage underthis Plan.2. You are in a group or classification of employees that was determined to be ineligible toparticipate in the Plan.3. You are a leased employee.4. You are a nonresident alien employee with no earnings from services in the United States.5. You are a consultant or independent contractor who is not treated as an employee on AMSEC’spayroll records during the applicable Plan Year or other relevant computation period,notwithstanding the fact that you are at some subsequent date determined to be an employee forpayroll purposes.W hen Do I B ecome E ligible T o J oin?Your eligibility to participate in the Plan begins as of the date you start working for AMSEC as aneligible employee or, if later, the date you become an eligible employee. (See Article II - “Am IEligible To Participate?”)March 2011 2 AMSEC SPD

III. RETIREMENTW hen C an I R etir e?The Normal Retirement Date under the Plan is the day on which you attain age 59½. If you workbeyond that date as an eligible employee, the date you terminate employment is considered yourNormal Retirement Date, and you continue to participate in the Plan until that date.Termination of employment prior to attainment of your Normal Retirement Date is described inArticle IV, in the section “What Are the Plan Benefits and When Do I Receive Them?”IV. BENEFITSW ho P ays for Plan B enefits? H ow Ar e C ompany C ontr ibutions Allocated?As you become eligible to receive benefits, Accounts are established on your behalf. These Accountsmay include a Deferral Account, Company Contribution Account, Voluntary Account, RolloverAccount and Alternate Payee Account. In addition, employees who participated in either TheNewport News Shipbuilding, Inc. 401(k) Investment Plan for Salaried Employees or the PlanningConsultants, Inc. Savings Plan may also have various Transfer Accounts under this Plan. Unlessotherwise specified, the term “Accounts” refers to all of your Accounts under the Plan.There are nine types of contributions that may be made to your Accounts: salary deferrals, catch-upcontributions, company matching contributions, profit-sharing contributions, company discretionarycontributions, voluntary contributions, rollover contributions, special contract contributions, andmilitary make-up contributions.Note: Under applicable regulations, compensation in excess of $245,000 for 2011 (indexed forinflation) must be disregarded for all Plan purposes.1. Contribution of Your Salary Deferrals. AMSEC contributes to the Plan the amount that youelect to defer from your salary (your “Salary Deferrals”), which can be between 1% and 75% ofyour salary. If you are automatically enrolled in the Plan, your Salary Deferrals will equal 2% ofyour salary and will increase by 1% each year up to a maximum of 10% of your salary unless youelect a different deferral percentage. Your Salary Deferrals are subject to a federal maximumannual dollar amount. For 2011, the dollar limit is $16,500 (may be adjusted for the cost of livingthereafter). The amount of your Salary Deferral must be equal to or less than both the dollar limit($16,500 in 2011) and the maximum percentage (75%). In addition, a Participant who attains age50 before the last day of the Plan Year may also make an additional catch-up contribution, asdiscussed in paragraph 2, below. You may obtain information about the Salary Deferral limits forthe current year from the Vanguard website. For purposes of Salary Deferrals under the Plan,salary is defined as your salary and wages (before your salary deductions for this Plan), butexcludes any bonus.March 2011 4 AMSEC SPD

When you become a Participant in the Plan by electing to make Salary Deferral (401(k))contributions, a Deferral Account is established for you. Your Salary Deferral contributions and,if applicable, your catch-up contributions for each calendar year are put in your Deferral Account.2. Catch-Up Contribution. If you will be age 50 or older by the end of the year, you can make anadditional $5,500 “catch-up” contribution for 2011 on a pre-tax basis. You can make the fullcatch-up contribution in a given year if you are at least age 50 and you will contribute the IRS pretaxdollar maximum ($16,500 in 2011).Calendar YearDollar Limit on YourSalary DeferralsDollar Limit “Catch-Up” Contributions atAge 50+Total Dollar Limit atAge 50+2011 $16,500 $5,500 $22,0003. Automatic Payroll Deduction Increase. To increase your pre-tax savings rate automaticallyeach year, sign up for the automatic payroll deduction increase. Just choose the amount of yourincrease (one to three percentage points) and the month you want it to occur. Your increasescontinue until you reach the Plan’s limit of 75% or the IRS limit.A separate Company Contribution Account will record your interest in any Company matching, profitsharing,or additional contributions, as described below.4. Company Matching Contributions. AMSEC matches 45% of what you contribute, to amaximum of $2,000 per year to your Plan. The Company’s contribution is made each pay period.These contributions are invested according to your contribution allocations or the funds youchoose. They do not have to match your current allocations.5. Company Profit-Sharing Contribution. AMSEC may, but is not obligated to, make a profitsharingcontribution. Any profit-sharing contributions are calculated separately for AMSECemployees and the employees of any Contributing Employers. Each eligible AMSEC employeewill receive a percentage of the profit-sharing contribution determined by dividing his or hersalary by the combined salary of all eligible AMSEC participants. Any profit-sharingcontributions are allocated on the last day of the Plan Year to those eligible AMSEC employeeswho were performing duties as wage-earning employees on the last day of the Plan Year and toeligible AMSEC employees who died, retired, or became disabled during such Plan Year.6. Company Discretionary Contributions. If necessary to satisfy applicable legal requirements,AMSEC may make an additional annual contribution to the Plan, which will be allocated as anequal dollar amount to all eligible “non-highly compensated” employees who were employedduring the applicable year. Non-highly compensated generally means that the employee’s annualcompensation is not in excess of a limit determined by the IRS for the previous year, adjustedperiodically for the cost of living.7. Rollover Contributions. Under rules prescribed by the Committee, eligible employees maymake rollover contributions of amounts distributed to them from qualifying retirement plans ofprior employers (including certain plans of governmental and non-profit employers). In addition,March 2011 5 AMSEC SPD

if an employee receives a plan distribution as the beneficiary of his or her deceased spouse, thatdistribution may qualify as a rollover contribution. Before making a rollover contribution, youshould find out whether the rollover contribution will be accepted by the Plan. If accepted, thosefunds are treated as fully vested and are maintained in a Rollover Account until withdrawn by youor distributed due to retirement or termination of employment. You can direct the investment ofyour Rollover Account.8. Voluntary Contributions. The Plan does not permit voluntary contributions other than pre-taxSalary Deferrals, as described above. If you made voluntary (after-tax) contributions to the Planprior to 1987, these after-tax voluntary contributions, which are always fully vested, aremaintained in a separate Voluntary Account until withdrawn by you or distributed due totermination of employment.9. Special Contract Contributions. If you work on a contract that is covered under the McNamara-O’Hare Service Contract Act (the “Act”), AMSEC may elect to contribute any fringe benefitobligation or pension obligation payable under the Act to the Plan. Special Contract Contributionsdo not depend on either your eligibility or your election to make Salary Deferrals.In the event AMSEC elects to make its contributions under the Act to the Plan, you will benotified and these contributions will be reflected in your Company Contribution Account. If youhave any questions about contributions under the Act, contact the Director of Human Resources ordesignee at AMSEC’s address listed in Article IV - “Is There Any Additional Information IShould Know About Our Plan?”10. Military Make-Up Contributions. If you return from active service in the U.S. military and youreturn to work at AMSEC LLC, you may qualify to make up any Plan contributions that youmissed during your absence. If you become disabled or die during a military leave of absence, thePlan credits your account with any applicable company contributions that you would have beenentitled to if you were reemployed on the date immediately preceding your disability or death, andterminated employment on the date of your disability or death. The company contributions will bedetermined based on your average deposits for the 12 months immediately preceding your militaryleave of absence or, if shorter, your actual continuous period of service with the companyH ow Do Y ou C hange Y our C ontr ibution L evel?You may increase, decrease, recommence, or suspend your contributions to the Plan at any time. Tochange the amount you contribute, or to recommence or suspend contributions, you must contactVanguard either by phone or via the Internet (options listed below). Your change goes into effect as ofthe next available pay period cycle.1. Through the VOICE® Network - Vanguard’s 24-hour automated network available by dialing thetoll-free number 1-800-523-1188. Participants should have their Social Security number andpersonal identification number (if PINs are required by your plan) available when calling theVOICE Network.2. Online at www.vanguard.com.March 2011 6 AMSEC SPD

3. By phone at 1-800-523-1188; speak to a Vanguard Participant Services associate.H ow Ar e the F unds I nvested?Under current procedures, you may invest up to 100% of your Salary Deferrals, catch-up contributionsand your matching contributions among the different investment alternatives. Separate accounts areestablished for each investment alternative you select and each account is valued separately. You maytransfer amounts from one investment alternative to one or more other investment alternatives at anytime, subject to any fund restrictions that apply.The Plan is designed to constitute a plan described in section 404(c) of the Employee RetirementIncome Security Act of 1974 (“ERISA”) and Title 29 of the Code of Federal Regulations section2550.404c-1. Under these provisions, fiduciaries of the Plan (e.g., the Committee, the InvestmentCommittee and the Trustee) may be relieved of liability for any losses that are the direct and necessaryresult of your investment instructions given by you as a Plan Participant or beneficiary. It is yourresponsibility to make an informed election from among the available options. When makinginvestment decisions you should consider how investments in the Plan, when combined with yourother investments, fit into your overall investment strategy. You should consider a number of factors,including your tolerance for risk, your time horizon to retirement, and your other investments, as wellas the concepts of diversification and asset allocation. You may want to consult a financial advisor tohelp you make your investment decisions.AMSEC is committed to preserving the integrity of the Plan as a long-term savings vehicle forParticipants. Frequent, short-term trading that is intended to attempt to take advantage of pricing lagsin mutual funds can harm long-term investors. Therefore, it is possible that, if necessary, appropriateaction may be taken to curb short-term “round trip” buying and selling of mutual funds. In addition,although you are permitted to redeem shares from one fund to purchase shares of another, mutual fundcompanies reserve the right to revise or terminate this privilege, limit the amount of an exchange, orreject an exchange at any time without notice. Excessive trades and exchanges can potentially disruptthe management of a fund and increase its transaction costs. For more information about tradingpolicies for specific funds, contact Vanguard at 1-800-523-1188 or online at www.vanguard.com for acopy of the current prospectus or information about the specific trading restrictions in place for thefunds.You must contact Vanguard and make an affirmative election to ensure that your Accounts under thePlan are invested according to your choices. If you fail to make an investment selection, thenondirected portion of your Accounts is invested in the Vanguard Target Retirement Fund with atarget date closest to when you turn age 65. In addition, you should confirm that the confirmationsand account statements you receive reflect your investment choices and that those choices wereproperly implemented. If you fail to receive a confirmation of your investment selection but do notnotify Vanguard within 30 days, or if you fail to correct what you believe to be an incorrectimplementation of your investment selection within 30 days of your selection, you are deemed to haveselected those investment alternatives in which your Accounts were actually invested, even if they donot correctly reflect your choices. Therefore, if you ever have questions or believe that your Accountsare not being invested according to your election, contact Vanguard immediately.March 2011 7 AMSEC SPD

Information regarding the current investment alternatives under the Plan – including a description ofthe available investment alternatives (and corresponding risks and objectives), a list of any investmentmanagers, a description of any transaction fees and expenses and a copy of the most recent prospectus– will be provided to Participants by Vanguard or the Plan Administrator. In addition, the PlanAdministrator will provide the following information on request:• A description of the annual operating expenses of each investment option, including the totalamount of those expenses expressed as a percentage of average net assets of the investment option.• Copies of any relevant prospectuses, financial statements, or other materials, to the extent they areprovided to the Plan.• A list of the assets making up the portfolio of each investment option that are considered “planassets” under the plan asset regulation of ERISA, the value of each asset, and, for fixed-rateinvestment contracts issued by a bank or similar company, the name of the issuer of the contract,the term of the contract, and the rate of return on the contract.• Information concerning the value of shares or units in investment options, as well as the past andcurrent investment performance of such options.• Information concerning the value of shares or units in investment options held in your Planaccount.T r acking and M anaging Y our Account B alanceYou can check your current account balance or make changes to your account by the followingmethods:1. Through the VOICE® Network - Vanguard’s 24-hour automated network available by dialing thetoll-free number 1-800-523-1188. Participants should have their Social Security number andpersonal identification number (if PINs are required by your plan) available when calling theVOICE Network.2. Online at www.vanguard.com.3. By phone at 1-800-523-1188; speak to a Vanguard Participant Services associate.As early as 9 a.m. Eastern time each day, you can check your updated balance for the previousbusiness day. You can also check the closing price or unit value of your investments.In addition, each quarter, you will receive a statement that shows all activity in your Accounts for theprevious quarter. Your statement tells you:• The market value of your investments as of the last day of the quarter.• The amount of any contributions from AMSEC LLC. Keep in mind that contributions are generallyposted the Friday coinciding with or immediately following your paycheck date.March 2011 8 AMSEC SPD

• Transactions that you made during the quarter, such as investment reallocations, loans, andwithdrawals.• The beneficiaries you have designated in your account.If you find any discrepancy when you review your account, call 1-800-523-1188 and speak to aVanguard Participant Services associate immediately.Participants in the Plan may invest in the mutual funds listed below. Fund sheets are available byrequest through Vanguard. Please note: the funds available for investment are subject to change fromtime to time at the direction of the Investment Committee.Fund NameVanguard Prime Money Market FundVanguard Total Bond Market Index FundVanguard 500 Index FundVanguard Mid-Cap Index FundVanguard Small-Cap Index FundPIMCO Total Return Fund Administrative ClassAmerican Funds Growth Fund of America Class R-4Vanguard Windsor FundColumbia Acorn Fund Class ZT. Rowe Price Mid-Cap Growth Fund Advisor ClassVanguard Total International Stock Market Index FundVanguard Target Retirement 2055 FundVanguard Target Retirement 2050 FundVanguard Target Retirement 2045 FundVanguard Target Retirement 2040 FundVanguard Target Retirement 2035 FundVanguard Target Retirement 2030 FundVanguard Target Retirement 2025 FundVanguard Target Retirement 2020 FundVanguard Target Retirement 2015 FundVanguard Target Retirement 2010 FundVanguard Target Retirement 2005 FundVanguard Target Retirement Income FundVanguard Brokerage Option (VBO®)If you’re an experienced investor looking to expand your portfolio with individual securities andadditional mutual funds, you may want to take advantage of your Plan’s brokerage option. With thisoption you open an account with Vanguard Brokerage Services® in which you can invest a portion ofyour retirement Plan savings in domestic stocks, fixed-income securities, and thousands of funds fromVanguard and other mutual fund companies not offered through your Plan’s main investment options.March 2011 9 AMSEC SPD

Although a brokerage account offers you greater investment choice and control, you should be awarethat your risks are substantially higher than they are with your main investment options. In addition,you are responsible for paying commissions and other costs. The VBO offered through your Plan mayhave specific provisions and restrictions, which you should consider when deciding whether to open abrokerage account.Vanguard Brokerage Services is a division of Vanguard Marketing Corporation, Member FINRA.Investment performance information is available through the Vanguard website atwww.vanguard.com.A r e T her e C ir cumstances in W hich E mployee S alar y Defer r al C ontributions W illB e R etur ned?The Internal Revenue Service imposes a set of complicated requirements on 401(k) plans regardingthe level of permitted employee Salary Deferrals and matching contributions. Each year tests must berun to determine if the requirements were satisfied for the year. It is possible that when these tests arerun, it may be necessary to recategorize or make corrective distributions of Salary Deferralcontributions to some Participants. Participants who are 50 or older may have a portion of their SalaryDeferrals recategorized as a catch-up contribution to avoid exceeding certain testing limits. Inaddition, corrective distributions may be made to some Participants. If such recategorizations ordistributions are required, affected Participants will be notified by the Plan.W hat Ar e the Plan B enefits and W hen Do I R eceive T hem?(See A r ticle V I - C laim Pr ocedur es)1. Termination of Employment. If you terminate employment with AMSEC after you attainNormal Retirement Age (age 59½), you are entitled to receive a distribution of the entire interestin your Accounts. You will receive the distribution as soon as practicable following yourretirement.If you terminate employment with AMSEC before attaining age 59½, you are entitled to receive adistribution of the balances in your Accounts. The Trustee for the Plan, Vanguard Fiduciary TrustCompany, will send you the information and forms you need to receive a distribution. In general,if your distributable benefit is $1,000 or less at the time you terminate employment with AMSECor at any time subsequent to your termination, your distributable benefit is paid to you as a cashlump-sum as soon as practicable following your termination of employment, or such subsequenttime, whichever is applicable. If your distributable benefit exceeds $1,000 but does not equal orexceed $5,000 at the time you terminate employment, or at any time subsequent to yourtermination, your benefits are rolled-over to a Vanguard IRA as soon as practicable followingtermination of employment, or such subsequent time, whichever is applicable. If yourdistributable benefit equals or exceeds $5,000, you will have other options, described below under“In What Form Will Benefits Be Paid?” Certain transfers between AMSEC and other employersdo not qualify as a termination of employment.2. Death Before Termination of Employment. If you die while still employed by AMSEC, yourbeneficiary is entitled to receive a distribution of your Accounts. In general, distributions must beMarch 2011 10 AMSEC SPD

• Promissory note• NotarizationMinimum amount for loans $1,000 $1,000Maximum amount for loans $50,000 $50,000Minimum term for loans (months) 1 1Maximum term for loans (years) 25 5Interest rate: Expressed as a percentage of the loan amount, the interest rate is the charge for borrowing money. Theinterest rate on an outstanding loan remains the same over the life of the loan, unless otherwise indicated.Loan interest rate calculation method Prime rate plus 1% Prime rate plus 1%*An express loan is a loan that can be confirmed on the Vanguard website or by phone. Most express loans donot involve paperwork. Your check normally is mailed from Vanguard the next business day after the loan isapproved.I mpact on L oans – L eave of AbsenceIf you go on an approved leave of absence for medical/disability, military or FMLA before your loanis repaid, you repayments may be suspended. The suspension can be in effect for 12 months, to theend of the term of your loan, or until you return to full pay status, whichever is earliest. If you have anoutstanding Plan loan, the term of your loan does not change because of your leave of absence. Youare not required to make loan repayments during your leave for up to 12 months. You are required,however, to repay your outstanding loan balance when you return to work or by the final payment dateon your loan schedule if it is earlier than your return-to-work date.When you return to work, your payments resume through payroll withholding at a higher level, takinginto account additional interest accruing on your loan during your leave, and spreading yoursuspended amounts over the remaining term of your loan.I f Y ou H ave an Outstanding L oan and Y ou T r ansfer fr om AM SE C but withinH untington I ngalls I ndustr ies, I nc.If you leave AMSEC as the result of a transfer to the Parent Company, or as the result of a divestitureof an identified group, you may continue to make scheduled loan payments by arranging an electronicfund transfer (ACH) payment directly with Vanguard. Participants must call Vanguard ParticipantServices at 1-800-523-1188 and speak to a Participant Services Associate to set up an ACH payment.If you fail to make a loan repayment by its due date and are not eligible for a distribution under thePlan, the total outstanding amount of your loan, including any interest that accrued, is defaulted anddeemed distributed to you.On retirement or separation of employment, your loan must be repaid before you receive your finaldistribution from the Plan. If you do not repay your loan, the outstanding balance of your loan issubtracted from your total account balance in determining the amount of your actual distribution. Itwill be included, however, in your taxable distribution from the Plan. The total account balance,including any outstanding loan balance, is subject to applicable federal income tax rules andregulations, which may include a 10% early-distribution penalty.March 2011 13 AMSEC SPD

F ailur e T o R epayIf you fail to make a loan repayment by its due date and are not eligible for a distribution under thePlan, the total outstanding amount of your loan, including any interest that accrued, is defaulted anddeemed distributed to you. The amount of the deemed distribution is taxable to you in the year ofdefault and may be subject to the 10% early-distribution penalty. You will receive an IRS Form 1099-R to report the income.Defaulted L oans(a)If you default on a loan, you cannot take another loan until you pay the balance of the defaultedloan (with interest).(b) If you want to repay your defaulted loan, call Vanguard Participant Services at 1-800-523-1188and speak to a Participant Services Associate, who will inform you of the total amount requiredto repay the defaulted loan. You must repay both the defaulted amount and the interest thataccrued since the date of the default in a single lump-sum payment.W ithdrawalsYou can withdraw money from your Accounts under certain circumstances:• Rollover withdrawals. You can withdraw all or part of any assets that you rolled over from anotherplan.• Age 59½ withdrawals. Once you reach age 59½, you can make withdrawals from your entirevested account balance.• Qualified Reservist Withdrawals. If you are a member of the U.S. military reserves and are calledto duty after September 11, 2001 for a period of at least 180 days, you may withdraw your electivedeferrals and catch-up contributions.• Military Service Withdrawals. If you are on a military leave of absence for more than 30 days, youmay withdraw your elective deferrals. If you take such a withdrawal, you may not make anyfurther contributions for a period of six months following the withdrawal.• NNS/PCI In-Service Withdrawals. If you formerly participated in either the Newport NewsShipbuilding, Inc. 401(k) Investment Plan for Salaried Employees or the Planning Consultants,Inc. Savings Plan, you may withdraw from the Plan certain types of contributions that were madeunder those plans.• Hardship withdrawals. You can withdraw money from your account for a serious financialhardship, including:ooooPurchase of a principal residenceUnreimbursed medical expensesTuition and fees for postsecondary educationPrevention of eviction or mortgage foreclosureMarch 2011 14 AMSEC SPD

ooBurial or funeral expenses for a spouse, child, or dependentCertain expenses for repairing your principal residence if the expenses qualify as a casualtydeduction.Before making a hardship withdrawal, you must first exhaust other options, including loans. Inaddition, you cannot contribute to the Plan for six months after the withdrawal.Tax implications: You are responsible for paying any federal, state, local, or foreign taxes on adistribution or withdrawal from pre-tax accounts. Early withdrawals may be subject to a 10% federalpenalty tax. To the extent required by law, Vanguard will make the appropriate withholding for taxpurposes.W ithdrawal Options OverviewThe table on the following page provides an overview of withdrawal options.March 2011 15 AMSEC SPD

HardshipWithdrawalAfter-TaxWithdrawalAge 59½WithdrawalNNS In-ServiceWithdrawalRolloverWithdrawalQualified ReservistWithdrawalExpresswithdrawalsallowed*No Yes Yes Yes Yes NoRequestapplication fromParticipantServicesAssociate for apre-filledapplicationNo ApplicationRequired. CallVanguard to arrangewithdrawal or go towww.vanguard.comNo ApplicationRequired. CallVanguard to arrangewithdrawal or go towww.vanguard.comNo ApplicationRequired. CallVanguard to arrangewithdrawal or go towww.vanguard.comNo ApplicationRequired. CallVanguard to arrangewithdrawal or go towww.vanguard.comParticipant ServicesAssociate for a pre-filledapplicationReturn applicationtoVanguard Not applicable Not applicable Not applicable Not applicableAMSEC HumanResourcesPlan sponsorapproval requiredbefore applicationprocessingNo No No No No YesDistributionmethods allowedCheckWire to bankElectronic banktransferCheckWire to bankElectronic bank transferCheckWire to bankElectronic banktransferCheckWire to bankElectronic banktransferCheckWire to bankElectronic banktransferCheckWire to bankElectronic bank transferDistribution sentviaRegular U.S. mailOvernight carrierat your expenseRegular U.S. mailOvernight carrier atyour expenseRegular U.S. mailOvernight carrier atyour expenseRegular U.S. mailOvernight carrier atyour expenseRegular U.S. mailOvernight carrier atyour expenseRegular U.S. mailOvernight carrier at yourexpense*An express withdrawal is a withdrawal that can be confirmed on the Vanguard website or by phone. Most express withdrawals do not involvepaperwork unless you are taking a hardship withdrawal. Refer to the Applications section for more information. Your check normally is mailedfrom Vanguard the next business day after the withdrawal is approved.March 201116AMSEC SPD

HardshipWithdrawalAfter-TaxWithdrawalAge 59½WithdrawalNNS In-ServiceWithdrawalRolloverWithdrawalQualified ReservistWithdrawalWithdrawalfrequencyMinimum amountrequired forwithdrawalEligibilityAll available loansmust be takenbefore awithdrawal can bemadeNot applicableNormally not lessthan $500ActiveParticipants haveaccess to Pre-TaxContributions butonly for qualifieddocumentedfinancial needsLimited to onewithdrawal per planyearUnlimited daily;reference theprospectus for allfundsUnlimited daily;reference theprospectus for allfundsUnlimited daily;reference theprospectus for allfundsUnlimited daily;reference the prospectusfor all fundsNot applicable Not applicable Not applicable Not applicable Not applicableActive Participantsalways have access toAfter-Tax contributionsActive Participantsthat have reached59½ years oldAllows access to allaccounts (sources)Former NNSemployees alwayshave access to theirNNS-named accounts(sources)Active Participantsalways have access toassets rolled over intothe planYes Not applicable Not applicable Not applicable Not applicable NoActive Participants, buton qualified MilitaryServices LeaveMarch 201117AMSEC SPD

Do I F or feit A ny B enefits if M y E mployment T er minates?You are always fully vested in your Accounts. Accordingly, you will not forfeit any amount in yourAccounts upon termination.Distribution OptionsYou are eligible to receive your account balance upon retirement, termination of employment, or totaland permanent disability. You can:• Leave it in the Plan if your balance equals or exceeds $5,000. The IRS requires that you begintaking distributions when you turn age 70½.• Receive it as a lump-sum cash payment.• Roll it over to another employer’s eligible plan or an IRA. For information on a direct rollover toa Vanguard IRA®, Connect with Vanguard® at 1-800-523-1188.• If your account balance equals or exceeds $5,000, receive your entire account balance in the formof systematic payments for the remainder of your life, and if you elect, the life of your survivingspouse. Your surviving spouse may receive payments for life with each payment equal to 50% or75% of the amount of a payment to you during your lifetime.Y our B r oker age A ccount R equir es S pecial A ctionYou can avoid paying taxes by rolling over your Vanguard Brokerage Option account to a traditionalVanguard Brokerage Services IRA. If you prefer to receive your brokerage balance as a taxable cashdistribution, you must sell the assets and transfer the proceeds to other Plan investments.Note: If the value of your account is at least $1,001 but no more than $5,000, it cannot be left in thePlan. You must decide within 90 days of termination how you want to take your account balance sothat you have control over your distribution method and investments. You can roll your accountbalance over to an IRA or other employer’s eligible plan or receive a lump-sum cash payment.According to federal regulations, unless you act within 90 days of termination, your balanceautomatically is rolled over to a new IRA at Vanguard in a money market fund.If your balance is $1,000 or less, you receive a taxable cash distribution unless you request a rolloverwithin 90 days of termination.*Tax implications: You are responsible for paying any federal, state, local, or foreign taxes on adistribution or withdrawal from pre-tax accounts. Early withdrawals may be subject to a 10% federalpenalty tax. To the extent required by law, Vanguard will make the appropriate withholding for taxpurposes.StatementsAccess your plan statements for account information, transaction confirmations, and administrationfees. Statements can also be viewed online at www.vanguard.com.March 201118AMSEC SPD

• Statements period: calendar quarter.• Statements sent: quarterly.A ddr ess C hangesActive employee of AMSECNot an active employee ofAMSECAddress changes are maintained by your employer.To change your address online, log onto www.vanguard.com,click My Profile then click Address & Phone.V. LOSS OR DENIAL OF BENEFITSW hat C ir cumstances M ay R esult in M y Disqualification, I neligibility, Denial, L oss,F or feitur e or Suspension of Benefits?The following factors (other than those previously discussed) may affect your eligibility for, and theamount of, benefits under the Plan.1. Change in Job Classification. Changes in your job classification such as promotions ordemotions will not, in general, affect your ability to participate in the Plan. If you transfer fromAMSEC within the Parent Company, you no longer will be eligible to contribute to the Plan. Sucha transfer is not considered a termination of employment and therefore you are not eligible for atermination distribution from the Plan. Contact AMSEC Human Resources for additionalinformation on how a transfer within the Parent Company affects your benefits under the Plan.2. Changes in the Plan. The Parent Company expects to continue the Plan indefinitely, but itreserves the right to amend, modify or change the Plan, or to permanently discontinuecontributions to the Plan, at any time and for any reason, in its sole discretion. Also, the ParentCompany or the Committee may alter the rules or procedures under which the Plan is operated,including, for example, investment alternatives and procedures, loan procedures and availability,timing and method of valuing accounts, timing of distributions, etc. In addition, the ParentCompany may have contributions to the Plan discontinued; however, just because contributions tothe Plan are discontinued in one year does not mean that contributions to the Plan will bepermanently discontinued. In addition, by having contributions discontinued, the Parent Companywill not have terminated the Plan. The Parent Company may not make any changes to the Planthat reduce benefits that already accrued to Participant Accounts.3. Termination of the Plan. The Parent Company expects to continue the Plan indefinitely, but itreserves the right to discontinue the Plan, in part or in whole, at any time, and for any reason, in itssole discretion. The Plan may also be discontinued by AMSEC’s merger into another corporation,whereby AMSEC ceases to exist and the successor corporation does not maintain the Plan. Thediscontinuance of the Plan means that AMSEC will make no more contributions to the Plan andthat you will be fully vested in all benefits accrued (and funded) on the date the Plan isdiscontinued. If the Parent Company discontinues a part of the Plan (e.g., a Plan amendmentexcluding a formerly eligible unit of employees which constitute 20% or more of the workforce),March 201119AMSEC SPD

you are fully vested in your Accounts if you are affected by the partial termination. In addition, atthe time the Plan is either wholly or partially terminated, the Parent Company shall decide whetherto distribute your Accounts. If your Accounts are not distributed when the Plan is discontinued,your Accounts will be held in trust until you are eligible to receive distributions under the Plan.4. Loss in Value of Accounts. The investment alternatives which you, the Parent Company orAMSEC select or to which Company Contributions (including your Salary Deferrals) are directedmay decline in market value, which will reduce the amount payable to you (because this amount isthe value of your vested Accounts at the time of distribution). Neither the Parent Company norAMSEC guarantees the value of your Accounts, nor does the federal government.5. Additional Fees. Your Accounts may be charged with reasonable fees relating to theadministration of the Plan and payment of Plan benefits.You may obtain additional information from the AMSEC Director of Human Resources or designeeconcerning any of these matters.VI. CLAIM PROCEDURESW hat I s the Pr ocedur e for F iling a C laim for B enefits?The AMSEC Employees 401(k) Profit Sharing Plan Administrator or Vanguard will provide anyforms that you need to file a claim for benefits. Claims are processed as follows:1. Your Application for Benefits must be in writing on the forms prescribed by the Committee. Itmust be signed by you and, if requested by the Committee, your spouse. In the case of a deathbenefit, the form must be signed by your beneficiary or your legal representative. The Committeecan require that you or your beneficiary furnish proof of age or a death certificate beforeprocessing the application.Your Application for Benefits is reviewed and either accepted or denied by an authorizedrepresentative of AMSEC within 90 days following its receipt.In the event your Application for Benefits is denied, in whole or in part, an authorizedrepresentative of AMSEC notifies you in writing of the denial and of your right to a review by theCommittee. This notice provides you, in a manner intended to be understood by you, all of thefollowing information:a. The specific reasons for the denialb. Specific references to the Plan provisions on which the denial is basedc. A description of any additional material or information necessary for you to perfect yourapplicationd. An explanation of why that material or information is necessarye. An explanation of the Plan’s claim review proceduresMarch 201120AMSEC SPD

f. A statement of your right to bring a civil action under ERISA Section 502(a).At your request, you will be provided with reasonable access to, and copies free of charge of, alldocuments, records, and other information relevant to your claim for benefits, including but notlimited to any additional information relied on in making the determination, any informationsubmitted, considered, or generated while making the determination, and any statement of policyor guidance concerning the denied benefit, even if it was not relied on.2. If your Application for Benefits is denied in whole or in part, you or your duly authorizedrepresentative may appeal to the Committee for a review of the denial. You may make this appealby submitting to the Committee within 65 days after the date of notice from the Committee of thedenial of your claim a written statement:a. Requesting a review by the Committee of your Application for Benefitsb. Setting forth all of the grounds on which your request for review is based and any facts insupport of your claimc. Setting forth any issue or comments that you think should be considered.The Committee will meet as often as is necessary to review appeals of claim denials submitted toit. The Committee will act on your application within 60 days (unless special circumstancesapply) after receipt of your request for review by the Committee.The Committee shall make a full and fair review of your Application for Benefits and any writtenmaterials submitted by you to the Committee in connection with the application. The Committeemay require the employer or you to submit such additional facts, documents, or other evidence asthe Committee, in its sole discretion, deems necessary or advisable in making the review. Underthe Plan, the Committee is provided the broadest possible discretion to determine factual issuesand to interpret the Plan’s provisions. Committee decisions are final and binding.In the event your Application for Benefits is denied in whole or in part, an authorizedrepresentative of AMSEC notifies you in writing of the denial and of your right to review by theCommittee. This notice provides you, in a manner intended to be understood by you, all of thefollowing information:a. The specific reason for the denialb. Specific references to the Plan provisions on which the denial is basedc. A statement of your right to bring a civil action under ERISA Section 502(a).March 201121AMSEC SPD

VII. PLAN TERMINATION INSURANCEA r e B enefits U nder T his Plan I nsur ed by the F eder al G over nment?Benefits under this Plan are not insured by the federal government. Benefits under certain types ofpension plans are insured by the Pension Benefit Guaranty Corporation (PBGC), which is part of thefederal government. However, plans (such as this Plan) that maintain individual accounts for eachParticipant are not insured by the federal government.VIII. GENERAL ADMINISTRATION OF BENEFITST op H eavy R ulesCertain tax rules – called “top heavy” rules – apply if the value of benefits payable to certain keyemployees exceeds 60% of the total benefits under AMSEC’s retirement savings plan. If these rulesapply, the Plan must be modified to maintain its status as a tax-qualified plan. The Plan Administratorwill notify you if your benefits are affected by top heavy rules.Qualified Domestic R elations OrderIn connection with marital dissolution and child support matters, it is possible that an award of aportion of your Accounts will be made to your former spouse or the guardian of your children. If theaward is made pursuant to a qualified domestic relations order, the Plan will be required to makepayments to the party to whom such award is made, and your benefits will be reduced accordingly. Acopy of the procedures governing qualified domestic relations orders can be obtained, without charge,by contacting the AMSEC Director of Human Resources.Effective July 1, 2004, the fees associated with the determination of the qualified status of a domesticrelations order (“QDRO”) are charged directly to the account of the affected Participant. Under theterms of a QDRO, however, the fees may be charged to the non-employee payee or divided equallybetween the Participant and the non-employee party to whom the award is made in connection withthe implementation of the order.For example, suppose a Participant’s account is valued at $12,000, the fee to determine that thedomestic relations order is qualified is $350, and the non-employee party agrees to absorb the full costof the QDRO review and determination. The account balance is otherwise split equally between theParticipant and the non-employee party. In that case, the Participant’s account is charged $350, theParticipant retains $6,000, and the non-employee party will have an account balance of $5,650 ($6,000- $350). However, if the Participant and the non-employee party agree to equally split the $350 fee,each of them will have an account balance of $5,825. Note that the actual fee may be different fromthe one in the example; to obtain information on the current fee structure as well as information aboutQDROs, contact QDRO Consultants Co. at 1-800-527-8481.March 201122AMSEC SPD

Unclaimed B enefitsA delay in applying for benefits may cause a delay in your payment. If you move and do not notify thePlan Administrator of your new address, your benefit payment may be delayed until the PlanAdministrator locates you. Likewise, you should notify the Plan Administrator when your beneficiarymoves and his or her address changes.Under state law, if the Plan Administrator cannot locate you for a specified period of time, the PlanAdministrator may forfeit your benefits to a state government. If this is the case, you must apply to thestate to receive your benefit.I ncapacity of Par ticipant or B eneficiar yIf you or, at your death, your beneficiary is deemed to be physically or mentally incompetent orotherwise incapable of receiving a payment for any reason, the Plan Administrator, at its discretion,may have the payment made to the person(s) or institution caring for you or a court appointedguardian.C har ges, Deductions, and L iens T her efor eIn general, the Plan pays all of its own applicable taxes and expenses. Taxes (and fees similar to taxes)might be levied at the federal, state, or local level or might be assessed by foreign governments (withrespect to foreign investments). Expenses include, but are not limited to, fees for services such asinvestment management (and other charges described in any prospectuses for funds), trusteeship,custodianship, brokerage, investment research, legal, accounting, auditing, consulting on Planinvestments and administration, recordkeeping, government reporting, employee communications andassistance, bonding and other insurance, loans, personnel training, travel, mail, courier, telephone andother communications, and computer programming and processing. Such fees for services mayinclude, but are not limited to, amounts for products delivered or used in connection with the deliveryof services, such as office supplies and computer hardware and software. The fees are paid to theservice providers, which may include AMSEC and its affiliates.AMSEC may, from time to time, choose to pay some of these Plan expenses, but has no obligation todo so.At present, there are no liens on Plan funds. However, liens might attach to Plan funds in certaininstances, although the law in this area is not entirely clear.• A lien may arise for the unpaid federal taxes of a participant, or as a result of a judgment against aparticipant for unpaid federal taxes.• It may be possible for a lien to arise with respect to some of the contributions of a contributingemployer if made, for instance, when the Parent Company is insolvent or shortly before the ParentCompany’s bankruptcy.• It may be possible for a lien to arise with respect to some of the contributions of a participant ifmade, for instance, when the participant is insolvent or shortly before the participant’s bankruptcy.March 201123AMSEC SPD

• Finally, liens against Plan funds might arise with respect to debts of or judgments against the Planitself or its underlying trust. Similarly, Plan funds can be affected by liens on collective trusts orinvestments with insurance companies under which Plan assets include not only the interest in thecollective trust or insurance contract but also the assets underlying that interest or contract.IX. STATEMENT OF RIGHTS UNDER THE EMPLOYEERETIREMENT INCOME SECURITY ACT OF 1974As a Participant in the AMSEC Employees 401(k) Profit Sharing Plan you are entitled to certain rightsand protections under the Employee Retirement Income Security Act of 1974 (“ERISA”). ERISAprovides that all Plan Participants shall be entitled to:R eceive I nfor mation About Y our Plan and B enefitsExamine, without charge, at the Plan Administrator’s office and at other specified locations, alldocuments governing the Plan, including insurance contracts and a copy of the latest annual report(Form 5500 Series) filed by the Plan with the U.S. Department of Labor and available at the PublicDisclosure Room of the Employee Benefits Security Administration.Obtain, on written request to the Plan Administrator, copies of documents governing the operation ofthe Plan, including insurance contracts and copies of the latest annual report (Form 5500 Series) andupdated Summary Plan Description. The Plan Administrator may make a reasonable charge for thecopies.Receive a summary of the Plan’s annual financial report. The Plan Administrator is required by law tofurnish each Participant with a copy of this summary annual report.Obtain, once a year, a statement of the total benefits accrued and the vested benefits (if any) or theearliest date on which benefits become vested. This statement must be requested in writing and is notrequired to be given more than once every 12 months. The Plan must provide the statement free ofcharge.Pr udent Actions by Plan F iduciar iesIn addition to creating rights for Plan Participants, ERISA imposes duties on the people who areresponsible for the operation of the Plan. The people who operate your Plan, called “fiduciaries” ofthe Plan, have a duty to do so prudently and exclusively in the interest of you and other PlanParticipants and beneficiaries. No one, including your employer or any other person, may fire you orotherwise discriminate against you in any way to prevent you from obtaining a benefit or exercisingyour rights under ERISA.E nfor ce Y our R ightsIf your claim for a benefit is denied or ignored, in whole or in part, you have a right to know why thiswas done, to obtain copies of documents relating to the decision without charge, and to appeal anydenial, all within certain time schedules.March 201124AMSEC SPD

Under ERISA, there are steps you can take to enforce the above rights. For instance, if you request acopy of Plan documents or the latest annual report from the Plan and do not receive them within 30days, you may file suit in federal court. In such a case, the court may require the Plan Administratorto provide the materials and pay you up to $110 a day until you receive the materials, unless thematerials were not sent for reasons beyond the control of the Plan Administrator. If you have a claimfor benefits that is denied or ignored, in whole or in part, you may file suit in state or federal court. Inaddition, if you disagree with the Plan’s decision or lack thereof concerning the qualified status of adomestic relations order, you may file suit in federal court. If it should happen that Plan fiduciariesmisuse the Plan’s money, or if you are discriminated against for asserting your rights, you may seekassistance from the U.S. Department of Labor, or you may file suit in federal court. The court willdecide who should pay court costs and legal fees. If you are successful, the court may order the personyou sued to pay these costs and fees. If you lose, the court may order you to pay these costs and feesif, for example, it finds your claim is frivolous.Assistance with Y our QuestionsIf you have any questions about the Plan, you should contact Vanguard or the AMSEC Director ofHuman Resources.If you have any questions about this statement or about your rights under ERISA, or if you needassistance in obtaining documents from the AMSEC Director of Human Resources, you shouldcontact the nearest office of the Employee Benefits Security Administration, U.S. Department ofLabor, listed in your telephone directory or the Division of Technical Assistance and Inquiries,Employee Benefits Security Administration, U.S. Department of Labor, 200 Constitution AvenueN.W., Washington, DC 20210. You may also obtain certain publications about your rights andresponsibilities under ERISA by calling the publications hotline of the Employee Benefits SecurityAdministration.X. MISCELLANEOUS TOPICSH ow Does T his P lan A ffect M y Social Secur ity B enefit?Your Social Security benefit is not altered in any way by the Plan. Also, you will continue to haveSocial Security amounts withheld from your “gross” salary, that is, your salary unreduced by SalaryDeferral contributions made under this Plan.W hat if I R eceive an O ver payment of B enefits?Although every effort is made to ensure benefit payments are correct, AMSEC reserves the right tocorrect any errors that are made and to recover any overpayment made to you or your beneficiary.This right includes the authority to offset future benefits or seek repayment by you or your beneficiaryof any overpayment.March 201125AMSEC SPD

W hat A r e the F eder al I ncome T ax C onsequences?As a general rule the amounts contributed to the Plan need not be currently reported as taxable incometo you when contributed to the Plan. Moreover, the earnings or increases in value of your Accounts, ifany, are not taxed to you currently.W hat Ar e the T ax C onsequences Pr ior to Distribution of B enefits?a. You are not subject to federal income tax on AMSEC’s contributions to the Plan at the time thecontributions are made.b. You are not subject to federal income tax on any income or appreciation with respect to yourAccounts under the Plan until distributions are made (or deemed to be made).c. You and AMSEC are not subject to federal employment taxes on AMSEC’s contributions to thePlan, except as set forth below with respect to certain employer contributions to this Plan.d. The Plan is not subject to federal income tax on the contributions by AMSEC and is not subject tofederal income tax on any income or realized gains, assuming that the Plan does not realize anyunrelated business taxable income.W hat Ar e the T ax C onsequences of Distr ibutions?Distributions from the Plan are subject to federal income tax under special, complex rules that applygenerally to distributions from tax-qualified retirement plans. In general, a single distribution from thePlan is taxable in the year of receipt at regular ordinary income rates (on the full amount of thedistribution), unless the distributee is eligible for and elects either:(1) To make a qualifying “rollover” of the amount distributed to an IRA or another qualified plan, or(2) To utilize 10-year averaging or partial capital gains taxation of the distribution.Although it is generally no longer tax-favored, a lump-sum distribution may be eligible for favorabletaxation under a special transition rule, described below. A “lump-sum distribution” for purposes ofeligibility for 10-year averaging or capital gains treatment is defined as a distribution of your entirevested interest under the Plan within one taxable year:(1) On account of your death or other separation from service, or(2) On account of your qualifying disability, or(3) After you reached age 59½.For purposes of this definition, distributions from the Plan or any other 401(k) or profit-sharing planmust be aggregated. Under the special transition rule, an individual who reached age 50 on January 1,1986 may make a one-time election of 10-year averaging (at 1986 rates) and may elect to have the pre-1974 portion of the distribution taxed at 1986 capital gains rates. The special 10-year averagingtreatment, as well as partial capital gains treatment, of lump-sum distributions is applicable to a lumpsumdistribution from the Plan only if all other lump-sum distributions (whether or not from the sameMarch 201126AMSEC SPD

Plan or retirement plans of a similar type) received during the same taxable year by you are treated inthe same manner.An “early” distribution from the Plan results in an additional 10% tax on the taxable portion of thedistribution, except to the extent the distribution:(1) Is rolled over to an IRA or other qualified plan, or(2) Is used for deductible medical expenses, or(3) Is distributed on your death or disability, or(4) Is distributed after separation from service and part of a series of substantially equal periodicpayments over your life or the life of you and your beneficiary, or(5) Is distributed to a non-Participant under a qualified domestic relations order, or(6) Is distributed after separation from service, if the separation occurred during or after the calendaryear in which you reached age 55.Generally, distributions made to you before the date you reach age 59½ are considered “early”distributions and subject to additional tax unless one of the exceptions noted above applies. An“early” distribution may be an in-service distribution (i.e., before termination of employment) or adistribution made following termination of employment.If you (or your spouse in the event of your death) receive a distribution from the Plan (other thanhardship withdrawals and certain mandatory distributions after age 70½) and wish to defer theimmediate tax on receipt of such distribution, you may transfer (i.e., “roll over”) all or a portion of thedistribution, including the amount of your voluntary non-deductible contributions received in thedistribution, to either an IRA or another eligible retirement plan. To be effective, the “rollover” mustbe completed within 60 days of receipt of the distribution. Alternatively, you (or your spouse) mayrequest a direct rollover from the Plan to an IRA or to another eligible retirement plan.If you (or your spouse) do not arrange a direct rollover to an IRA or another eligible retirement plan,you are subject to mandatory federal income tax withholding at a rate of 20% of the taxabledistribution, even if you (or your spouse) later make a rollover within the 60-day period.If you (or your spouse) make a valid “rollover” to an IRA, payment of federal income tax is deferreduntil you (or your spouse) actually begin to receive distributions from the IRA. IRA earningsaccumulate on a tax-deferred basis until actually distributed; however, IRA funds generally may not bewithdrawn without penalty until you (or your spouse) reach age 59½, or, if earlier, you becomedisabled or die. The Internal Revenue Code requires that distributions from a regular (i.e., non-Roth)IRA begin no later than April 1 of the taxable year following the year in which you reach age 70½, atwhich time periodic distributions must begin.The Plan is intended to be a qualified “cash or deferred arrangement” under Section 401(k) of theInternal Revenue Code. If you elect to defer a portion of your compensation and have the employercontribute it to the Plan as a 401(k) deferral, the amounts contributed are not subject to federal incometax when the contribution is made. However, the contribution is subject to Social Security taxes andMarch 201127AMSEC SPD

certain federal unemployment taxes. Any 401(k) deferrals made by you are limited to $16,500 for2011 plus the permitted catch-up contributions if you are at least age 50. This limit may be adjustedon a yearly basis as permitted by law. This annual limit applies on an employee-by-employee basis toall 401(k) plans (including plans of other employers) in which you participate.Generally, AMSEC will be able to deduct the amounts that it contributes to the Plan pursuant yourelection to defer a portion of your compensation, as well as any matching, profit-sharing, or additionalemployer contributions made to the Plan. The deduction is equal to the amount of contributions made.Any interest paid by you on Plan loans is not deductible, regardless of the purpose of the loan or use ofthe loan proceeds.A tax notice is provided to you before your distribution explaining the tax rules in more detail.The foregoing discussion is intended only as a summary of certain federal income taxconsequences and does not purport to be a complete discussion of all of the tax consequences ofparticipation in the Plan. AMSEC is not making any representation as to the tax consequencesto you of participation in the Plan. Accordingly, you should consult your own tax advisors withrespect to all federal, state, and local tax effects of participation in the Plan. Moreover, AMSECdoes not represent that the foregoing tax consequences will apply to your specific circumstancesor will continue to apply in the future and makes no promise to maintain the tax-qualified statusof the Plan.Consult your tax advisor for specific advice because rules change frequently and your own personalsituation may also.H ow I s the P lan A dminister ed?A committee designated by the Board of Directors of the Parent Company (referred to in thisSummary Plan Description as the “Committee” or the “Plan Administrator”) is the designated PlanAdministrator. The AMSEC Director of Human Resources or designee has been given the authority toestablish procedures for various Plan administrative functions and to interpret Plan provisions.The Committee has the power to supervise administration and control of the Plan’s operations,including the power and authority to:• Allocate fiduciary responsibilities, other than trustee responsibilities, among the NamedFiduciaries (e.g., the Committee, the Investment Committee, and the Trustee)• Designate agents to carry out responsibilities relating to the Plan, other than fiduciaryresponsibilities• Employ legal, actuarial, medical, accounting, programming and other assistance as the Committeemay deem appropriate in carrying out the Plan• Establish rules and regulations for the conduct of the Committee’s business and the administrationof the PlanMarch 201128AMSEC SPD

• Administer, interpret, construe and apply the Plan and determine questions relating to eligibility,the amount of any Participant’s service and the amount of benefits to which any Participant orbeneficiary is entitled• Determine the manner in which the Plan’s assets are disbursed• Direct the Trustee regarding investment of the Plan’s assets, subject to the direction of Participantswhen provided in the Plan• Adopt administrative amendments.The Investment Committee serves as the named fiduciary for investment matters and has the power tosupervise investment matters regarding the Plan, including the following:• Appoint one or more Investment Managers, as defined under ERISA, to manage all or a portion ofthe Plan’s assets• Hire and terminate trustees and custodians• Implement directed brokerage for trustees, custodians and investment managers• Select alternative investment options from which participants may select in determining theinvestment of their accounts, and to establish rules and procedures regarding such investmentoptions• Formulate investment policies for the trustees and investment managers to diversify Planinvestments so as to minimize the risk of large losses• Establish a funding policy to carry out the Plan’s objectives.All contributions are paid to and held by the Trustee, which is currently Vanguard. Subject to thedirection of the Committee, the Investment Committee and the Participants, the Trustee invests anddistributes the funds as provided in the Plan. No funds in the Trust may revert to or be used by theParent Company or AMSEC, except as allowed by federal law.H as the Plan B een A ppr oved by the I nter nal R evenue Ser vice as a Qualified Plan?Yes. On November 9, 2001, the Plan Administrator received a determination from the InternalRevenue Service stating that the Plan qualifies under Section 401(a) of the Internal Revenue Code.I s T her e Any A dditional I nfor mation I Should K now A bout O ur P lan?Yes, you should be aware of the following:1. PLAN NAME AND NUMBER AMSEC Employees 401(k) Profit Sharing Plan;Plan Number 0012. TYPE OF PLAN Defined Contribution Internal Revenue Code Section401(k) Retirement PlanMarch 201129AMSEC SPD

3. PLAN SPONSOR(May be served with Legal Process)Huntington Ingalls Industries, Inc.4101 Washington AvenueNewport News, Virginia 23607Internal Revenue ServiceEmployer ID #90-06070054. EMPLOYER AMSEC LLC2829 Guardian LaneVirginia Beach, Virginia 23452Telephone: (757) 463-66665. PLAN ADMINISTRATOR The Committee4101 Washington AvenueNewport News, Virginia 23607(757) 380-20006. AGENT FOR SERVICE Director of Human ResourcesAMSEC LLC2829 Guardian LaneVirginia Beach, Virginia 23452Telephone: (757) 463-6666Service can also be made on the PlanAdministrator and Trustee7. PLAN TRUSTEE Vanguard Fiduciary Trust CompanyVanguard Financial CenterP.O. Box 2900Valley Forge, Pennsylvania 19482-2900Telephone: (610) 669-1000Toll Free: (800) 523-11888. EFFECTIVE DATEOF THE PLANOriginal effective date was July 1, 1981, amendedand restated effective March 31, 20119. PLAN YEAR January 1 through December 3110. DAY-TO-DAY ADMINISTRATION AMSEC LLC Human ResourcesXI. CONCLUSIONThis Summary Plan Description is intended to acquaint you with the main features of the AMSECEmployees 401(k) Profit Sharing Plan. You may request additional information concerning the Planby contacting the AMSEC Director of Human Resources at AMSEC’s address listed above.March 201113168704v.530AMSEC SPD