EXHIBIT 10.3
 FIRST AMENDMENT TO
AMPAC FINE CHEMICALS LLC PENSION PLAN
FOR BARGAINING UNIT EMPLOYEES
  1.
    
    Section 3.1(b) is amended to read as follows effective October 1, 2008:
    2.
    
    Article IV is amended to add the following language to the end thereof effective June 30,
2010:




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(a)
    
    after June 30, 2010 and(b)
    
    more than 60 days after the original termination of employment or, in the
case of a reduction in force, elimination of the Participants position or layoff and
recall as defined in the Ampac Fine Chemicals LLC Policies and Procedures, more than
one year after the date of layoff or termination.
  3.
    
    Section 7.1 is amended to add the following language to the end thereof effective June 30,
2010:
  (a)
    
    after June 30, 2010 and(b)
    
    more than 60 days after the original termination of employment or, in the
case of a reduction in force, elimination of the Participants position or layoff and
recall as defined in the Ampac Fine Chemicals LLC Policies and Procedures, more than
one year after the date of layoff or termination
  Page 2 of Exhibit 10.3




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4.
    
    Section 8.1 is amended to add the following language to the end thereof effective June 30,
2010:
  (a)
    
    after June 30, 2010 and(b)
    
    more than 60 days after the original termination of employment or, in the
case of a reduction in force, elimination of the Participants position or layoff and
recall as defined in the Ampac Fine Chemicals LLC Policies and Procedures, more than
one year after the date of layoff or termination.
 5.
    
    Section 10.2(b) is amended to read as follows effective October 1, 2008:
 (b)
    
    A joint and survivor annuity, with reduced monthly payments to the
Participant for his lifetime, with the percentage of such monthly amount continued
thereafter to the Participants designated Joint Annuitant, to be paid monthly for the
lifetime of such Joint Annuitant, ending with the last payment made prior to the death
of such Joint Annuitant. Subject to the provisions of Section 10.6, the applicable
Joint Annuitants percentage shall be specified by the Participant at the time of
electing the joint and survivor annuity described in this Section 10.2(b), and shall
be either fifty percent (50%), seventy-five percent (75%), or one hundred percent
(100%). The reduced monthly amount payable to a Participant during his lifetime (as
provided in this Section 10.2(b)), shall be a percentage of the amount
 Page 3 of Exhibit 10.3




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otherwise payable in the form described in Section 10.1(b) above, and such
percentage shall be determined in accordance with Schedule B (where fifty percent
(50%) is payable to the Joint Annuitant), Schedule D (where seventy-five percent
(75%) is payable to the Joint Annuitant) or Schedule C (where one hundred percent
(100%) is payable to the Joint Annuitant).
 6.
    
    The last paragraph of Section 10.2 is amended to read as follows effective October 1, 2008:
  7.
    
    The first paragraph of Section 10.3 is amended to read as follows effective October 1, 2007:
  Page 4 of Exhibit 10.3




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8.
    
    Section 10.7 is amended to read as follows effective January 1, 2007:
 10.7 Direct Rollovers .
  Definitions
  Page 5 of Exhibit 10.3




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Page 6 of Exhibit 10.3




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Page 7 of Exhibit 10.3




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9.
    
    Article XVII is amended to read as follows effective October 1, 2007:
 AMENDMENT
       Page 8 of Exhibit 10.3




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Page 9 of Exhibit 10.3




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10.
    
    Section 19.15 is amended to add the following language to the end thereof effective January
1, 2007:
  11.
    
    A new Article XXII is added to read as follows effective October 1, 2008.
 Page 10 of Exhibit 10.3




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LIMITATIONS BASED ON FUNDED STATUS
 24.1 Limitations Based on Funded Status of the Plan.
      Page 11 of Exhibit 10.3




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Page 12 of Exhibit 10.3




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24.2 Limitations on Unpredictable Contingent Event Benefit
  Page 13 of Exhibit 10.3




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12.
    
    A new Schedule D-1 attached hereto and incorporated herein by this reference is added to the
end of the Plan to read as follows effective October 1, 2008:
 28th June 2010
 American Pacific CorporationATTEST: (SEAL)
    
    By:
    
    /s/ JOSEPH CARLEONE
 Page 14 of Exhibit 10.3