Basic Term Life Insurance

Basic Term Life Insurance may provide a benefit to employees and their eligible dependents if any were to die while the employee was working for Leidos.

How Basic Term Life Insurance Works

Eligible employees automatically receive Basic Term Life Insurance coverage for themselves and their eligible dependents, including their spouse or registered domestic partner* and their dependent children*

Leidos pays the full cost of Basic Term Life Insurance coverage.

_{* To qualify for this benefit, a stepchild or registered domestic partner's child must reside with the Leidos participant.}

Coverage

The amount of coverage that an employee may receive is based on his or her classification.

Class	Basic Term Life Insurance Benefit	Detailed Plan Information
Class 1 — All regular full-time employees working at least 30 hours per week and regular part-time employees working 12 – 29 hours per week and who are benefit eligible	1 times annual compensation*, rounded to the next higher multiple of $1,000 prior to calculating your amount of insurance, to a maximum of $1 million (Benefits for part-time employees will be based on their regularly scheduled hours.) Employees may choose to waive any coverage over $50,000 during the enrollment period.	Plan Summary
Class 5 — All eligible employees waiving Basic Term Life Insurance coverage amounts over $50,000	$50,000	Plan Summary

_{*"Annual compensation" means an employee's annual wage or salary as reported by his or her employer for the work performed as of the date of loss. It does not include earnings received as bonuses, overtime pay or other extra compensation.}

An employee may choose to waive any coverage over $50,000 at any time. However, if he or she waives the excess coverage and later wants to reinstate it, the employee may have to provide Evidence of Insurability (EOI) to Prudential.

Basic Term Life Insurance benefit amounts over $50,000 are subject to income tax. The value of an employee's life insurance coverage over $50,000 will be added each year to his or her W-2 form as taxable income. This is called "imputed income."

When an employee reaches age 70, the total amount of the employee's Basic Term Life Insurance benefit will be reduced by 35%. The amount lost due to age reduction is not eligible for port or conversion.

Coverage for an employee's eligible dependents equals $2,000 per person. Under the Basic Term Life Insurance plan, eligible dependents may include the employee's spouse or registered domestic partner, employee's natural child(ren), legally adopted child(ren), child(ren) placed with the employee for adoption prior to legal adoption* and the employee's stepchild(ren)** or Domestic Partner's child(ren)**.

^{*A child placed with an employee for adoption prior to legal adoption is considered a Qualified Dependent form the date of placement for adoption.}

^{**To qualify for this benefit, a stepchild or registered domestic partner's child must reside with the Leidos participant.}

See Eligibility in the Participating in the Plans section for more information about eligibility requirements.

Other Information

Basic Term Life Insurance also pays additional benefits, including:

Accelerated Benefits — If an employee or his or her spouse or registered domestic partner becomes terminally ill and is not expected to live for more than 12 months, he or she may request an accelerated benefit equal to a maximum of 50% of his or her combined life insurance benefit under Prudential (Basic Life Term Insurance and Group Universal Life (GUL) Insurance. The maximum accelerated benefit amount is $125,000.

Any remaining benefit amount will be paid to the employee's, spouse's or registered domestic partner's designated beneficiary upon his or her death. For a covered person to qualify for an accelerated benefit, two doctors must certify his or her condition.

IMPORTANT INFORMATION FOR RESIDENTS OF CERTAIN STATES: There are state-specific requirements that may change the provisions under the Coverage(s) described in this Group Insurance Certificate. If you live in a state that has such requirements, those requirements will apply to your Coverage(s) and are made a part of your Group Insurance Certificate. Prudential has a website that describes these state-specific requirements. You may access the website at www.prudential.com/etonline. When you access the website, you will be asked to enter your state of residence and your Access Code. Your Access Code is 52844.

Benefits for part-time employees will be calculated using their pay for a standard number of hours worked per week.