The Chairman of the Board shall be an Independent Director. A Lead Director shall not be a substitute for an independent Board Chairman. The Board shall have the discretion to select an interim Chairman of the Board, who is not an Independent Director, to serve while the Board is required to seek an Independent Chairman of the Board on an accelerated basis. This policy could be phased in when there is a contract renewal for our current CEO or for the next CEO transition although it is better to adopt it now. An independent Board Chairman at all times improves corporate governance by bringing impartiality, objective oversight, and external expertise to board decisions, mitigating conflicts of interest, enhancing transparency, and boosting shareholder confidence. This detached perspective allows the chairman to focus on shareholder interests , strengthen management accountability, and provide critical checks and balances, ultimately contributing to long-term sustainability and credibility. Unfavorable news reports regarding General Dynamics emerged in 2025 that can be a sound basis to transition to an independent Board Chairman. The U.S. Army canceled its procurement of General Dynamics' M10 Booker combat vehicle, a program GD had been developing since 2018. This decision is expected to negatively impact the Combat Systems segment and reduce its backlog. The U.S. Army threatened to terminate General Dynamics' contract for operating three new 155mm artillery shell production lines in Texas. General Dynamics was reported to have failed to complete the projects on time or make meaningful progress. During Q2 and Q3 2025 earnings reports, General Dynamics acknowledged ongoing supply chain issues, particularly in the Marine Systems division. This caused delays and affected productivity in shipbuilding programs. The transition from the higher-margin G650 aircraft to the G800 may take time to achieve similar profitability, potentially impacting short-term margins in the Aerospace division. Following the Q3 earnings report, analysts pointed to concerning General Dynamics insider stock selling, with $89 million in sell orders and no insider buying over the past 3-months. A federal appeals court ruled that a class-action lawsuit against General Dynamics and other naval manufacturers over a "no-poach" conspiracy to suppress wages could proceed. The suit alleges that the companies had an unwritten agreement not to recruit each other's engineers, which was fraudulently concealed. In April 2025, General Dynamics' own filings with the Securities and Exchange Commission referenced proposals from concerned parties about alleged complicity in human rights violations, including genocide. General Dynamics acknowledged that such allegations could harm its brand. A July 2025 analysis noted ongoing issues in submarine construction, such as labor shortages and design flaws.