BWXT Y•12 - Severance Plan - How Severance Pay is Determined

The amount of severance pay you will receive is based on your Company Service and your base pay as of the date immediately before your Termination Date.

Company Service	Severance Pay at Base Rate
Under 3 months	No pay
3 months and under 1 year	Proportion of 1/2 month’s pay equal to completed months of service in relation to 12 months of service*
1 year and under 3 years	1/2 month’s pay
3 years and under 5 years	3/4 month’s pay
5 years and under 7 years	1 month’s pay
7 years and under 10 years	1-1/2 month’s pay
10 years	2 month’s pay
11 years or more	2 month’s pay plus 1/4 month for each additional full year of service
* For example, if you have 8 months of Company Service, that is equal to 2/3 of a year of service, so your benefit would be equal to 2/3 of 1/2 month’s pay.

Your “Company Service” will be determined as of your Termination Date and will take into consideration prior service under Lockheed Martin Energy Systems, Lockheed Martin Energy Research and Lockheed Martin Utility Services. If you are rehired, you will not receive any Company Service under the severance plan for any period of service for which a severance benefit or layoff allowance previously has been paid to you.

Your “Base Rate” is defined as your regular, straight-time pay for your normal work schedule. It does not include overtime pay, bonuses, commissions, fees, incentive allowances, or Company-provided benefits.