<PAGE>
 
                                                                     EXHIBIT 4.8
                                                                                

                     THE EMPLOYMENT TRANSITION BENEFIT PLAN

                                       OF

                           PRIMEX TECHNOLOGIES, INC.
                                        


                       ARTICLE I - ESTABLISHMENT OF PLAN
                       ---------------------------------

  1.01  Establishment of Plan and Trust.  Primex Technologies, Inc. (the
        --------------------------------                                
"Company") hereby establishes a supplemental unemployment benefit plan (the
"Plan") for the benefit of employees who may, from time to time, be eligible to
benefit hereunder.   The Plan shall be known as the "Employment Transition
Benefit Plan of Primex Technologies, Inc."  The Company has established a trust
(the "Trust") for the purposes of funding the Plan, the terms of which are
incorporated herein by reference.  All contributions made to the Trust by the
Company and other Participating Employers shall be held for the benefit of Plan
Participants in accordance with the terms of the Plan.

  1.02   Purpose.  The purpose of this Plan is to supplement unemployment
         --------                                                        
compensation benefits for employees who may become eligible to receive the
benefits of this Plan.  This Plan is intended to comply with the requirements of
Section 501(c)(17) and Section 505(b) of the Internal Revenue Code of 1986 (the
"Code").

  1.03  Exclusive Benefit.  It shall be impossible, prior to the satisfaction of
        ------------------                                                      
all liabilities of the Plan, for any part of income or corpus of the Fund to be
used for, or diverted to, purposes other than providing benefits to Plan
Participants.  The payment of necessary or reasonable expenses in connection
with the administration of the Plan shall be considered in furtherance of
providing Plan benefits and shall not adversely affect the tax-exempt status of
the Plan and Trust. Upon satisfaction of all liabilities of the Plan, any assets
remaining may be returned to the Company and other Participating Employers in
proportion to their respective contributions to the Fund.

  1.04  Approval by Internal Revenue Service; Deductibility.
        ----------------------------------------------------

 (a) Notwithstanding anything herein to the contrary, if the Internal Revenue
     Service should determine that the Plan does not qualify as a tax-exempt
     Plan and Trust under Section 501(c)(17) of the Code, and related
     regulations, revenue rulings and IRS pronouncements, and such determination
     is not contested, or if contested, is finally upheld, then the Plan shall
     be void ab initio and all amounts contributed to the Plan, less expenses or
             ---------                                                          
     benefits paid, shall be returned within one year to the Company and/or
     Participating Employer which made the contribution.  The Plan shall then
     terminate, and the Trustee shall be discharged from all further
     obligations.

 (b) Contributions to the Trust Fund are conditioned upon their deductibility.
     To the extent that such deduction is disallowed, the Company may request
     return of such disallowed contribution within one year following a final
     determination of disallowance by the Internal Revenue Service or court of
     competent jurisdiction.

                    ARTICLE II - ELIGIBILITY; PARTICIPATION
                                        
  2.01  Eligible and Ineligible Classes.
        --------------------------------

 (a) All Regular Full-time, non-bargaining Employees of the Company and any
     other Participating Employer shall be eligible to participate in this Plan.

     An "Employee" is any individual whose status would be that of an employee
     of the Company (or any other Participating Employer) under common law rules
     applicable in determining the employer-employee relationship. The term
     "Employee" also includes any individual who qualifies as an employee under
     the State or Federal unemployment compensation law covering his employment,
     whether or not the individual qualifies as an employee under common law
     rules.
<PAGE>
 
     A "Regular, Full-time" Employee is any Employee of Primex Technologies,
     Inc. who is regularly scheduled to work at least twenty (20) hours per
     week.

     (b) The following classes of Employees shall be ineligible to participate:

         (i) part-time, seasonal and temporary employees;

        (ii) hourly non-bargained employees of the Company located in St. Marks,
             Florida and Red Lion, Pennsylvania;

       (iii) employees included in a collective bargaining unit where benefits
             were the subject of good faith bargaining and with respect to whom
             an agreement has not been signed covering such employees under this
             Plan; and

        (iv) employees of certain divisions and business units of the Company
             for whom the Plan has not been approved by the appropriate Division
             President.

  2.02   Participation.  Each Regular Full-time Employee, who is not excluded
         --------------                                                      
from participation in Section 2.01(b), shall automatically be entitled to
participate in this Plan and shall be referred to hereinafter as an "Eligible
Employee" or "Participant," provided, however, that no benefits shall be paid
hereunder unless the Participant is entitled to State unemployment compensation
benefits and unless the Participant's employment has been involuntarily
terminated as a result of:

  (a) a reduction in force;

  (b) a plant shutdown, or business closing;

  (c) job elimination or restructuring; or

  (d) other similar causes.

No benefits shall be payable hereunder to employees who are terminated for
disciplinary or performance reasons, or for any reason other than those
specified in Section 2.02(a)-(d).  In addition, no benefits shall be payable
under this Plan if an Employee's employment with the Company or other
Participating Employer is involuntarily terminated as the result of a sale to
another company of a portion of the business or assets of his or her employer
and the Employee is offered employment by the purchaser.

  2.03  Determination of Eligibility.  The Plan Administrator shall determine
        -----------------------------                                        
the eligibility of each Employee for participation in the Plan based upon
information furnished by the Participating Employer.  Such determination shall
be conclusive and binding upon all persons.  If in any Plan Year any person who
should be included as a Participant in the Plan is erroneously omitted and
discovery of such omission is not made until after a contribution by the Company
for the year has been made, the Company shall make a subsequent contribution
with respect to the omitted Participant.  If, in any Plan Year any person who
should not have been included as a Participant in the Plan is erroneously
included, and discovery of such incorrect inclusion is not made until after a
contribution for the Plan Year has been made, the Company shall not be entitled
to recover the contribution made with respect to the ineligible person.  In such
event the amount contributed shall be used to provide Participants with the
benefits set forth in the Plan.


                             ARTICLE III - BENEFITS
                             ----------------------

  3.01  Qualifying for Benefits.
        ----------------------- 

 (a) In order to qualify for benefits under this Plan, an Eligible Employee who
     has been involuntarily separated as provided above must apply for State
     unemployment benefits when first eligible, and must comply with any rules
     or regulations concerning the continuance of such unemployment compensation
     benefits.  Eligible Employees will be required (i) to advise the Company
     periodically of their employment status and 
<PAGE>
 
     continued eligibility for State unemployment compensation benefits and (ii)
     make good faith efforts to obtain employment. Failure to comply with the
     requirements of this Plan, or any rules regarding the payment of State
     unemployment compensation benefits, will result in the immediate cessation
     of benefits hereunder.

 (b) In order to qualify for supplemental unemployment benefits under this Plan,
     an Eligible Employee must be eligible to receive State unemployment
     compensation benefits.  Notwithstanding the foregoing, supplemental
     unemployment benefits may be paid under this Plan to an Eligible Employee
     who

       (i) has not yet completed a waiting period for State unemployment
           compensation benefits;

      (ii) has insufficient earnings or "quarters of earnings" to qualify for
           State unemployment compensation benefits; or

     (iii) has exhausted State unemployment compensation benefits.

  3.02  Amount of Benefits.  A Participant who has qualified for benefits in
        -------------------                                                 
accordance with Section 3.01 of the Plan shall receive the following benefits,
subject to the limitations specified in Section 3.03:

(a) Basic Benefits.  One Hundred Percent (100%) of Base Weekly Pay (as defined
    ---------------                                                           
     in Section 3.02(d) below) for each year, or fraction thereof, of employment
     with the Company, up to a maximum of thirty (30) weeks of pay, reduced by
     one hundred percent (100%) of any State or Federal unemployment
     compensation benefits payable to such Participant.

(b) Extended Benefits. If the Participant remains unemployed after exhausting
    ------------------                                                       
     his Basic Benefits, Seventy Five Percent (75%) of Base Weekly Pay (as
     defined in Section 3.02(d) below), multiplied by one and one-half (1 /2)
     times each year, or fraction thereof, of employment with the Company, up to
     a maximum of forty-five (45) weeks of pay, reduced by one hundred percent
     (100%) of any State or Federal unemployment compensation benefits payable
     to such Participant.

(c) Minimum Basic Benefit.  A Participant who, as of the date of his termination
    ----------------------                                                      
    of service, is credited with fewer than four (4) Years of Service with a
    Participating Company shall receive the following Minimum Basic Benefit:

          Years of Service                     Minimum Basic Benefit
          ----------------                     ---------------------

          2 or Fewer Years                     2 Weeks of Basic Benefits
          More than 2 but fewer than 4 Yrs.    4 weeks of Basic Benefits

(d) Base Weekly Pay Defined.  Base weekly pay shall mean an Employee's then
    ------------------------                                               
    current basic compensation paid by the Company or other Participating
    Employer for services rendered, excluding additional compensation such as
    shift differentials, overtime, bonuses and other extraordinary items of
    compensation. The Base Weekly Pay for an Employee whose regular salary is
    stated in terms of months will be equal to the then currently monthly salary
    divided by 4.33. The Base Weekly Pay for an hourly paid Employee will be
    equal to the then current hourly rate of pay times the Employee's regularly
    scheduled number of work hours for a week.

  3.03  Loss of Entitlement to Benefits.  In addition to the limitations set
        --------------------------------                                    
forth in Section 3.02, no benefits shall be payable under this Plan once

  (a) a Participant no longer qualifies for State or Federal unemployment
      compensation benefits, for reasons other than having exceeded the maximum
      period of entitlement to unemployment compensation benefits;

  (b) a Participant becomes re-employed;

  (c) a Participant is employed by a division or business unit which is sold and
      the Participant is offered employment with the successor company, whether
      or not such offer is accepted; or
<PAGE>
 
  (d) the Plan Administrator in its sole discretion determines that a
      Participant is not engaged in a good faith effort to obtain other
      employment.


                      ARTICLE IV - FORM OF BENEFIT PAYMENT

  4.01  Form of Payment.  Benefits will be paid in bi-weekly installments, or in
        ----------------                                                        
such other form (excluding lump sums) as may be determined by the Plan
Administrator in a uniform and nondiscriminatory manner.


                           ARTICLE V - CONTRIBUTIONS

  5.01  Company Contributions.  The Company shall pay to the Trustee from time
        ---------------------                                                 
to time such amounts in cash or property acceptable to the Trustee as the
Administrator and the Company shall determine to be necessary to provide the
benefits under the Plan as determined by the application of accepted actuarial
methods and assumptions on the basis of benefits provided under the Plan, the
number, length of service and compensation of Participants, all in accordance
with the provisions of Code Sections 419 and 419A.  The Company shall be
authorized to retain actuaries to make such actuarial determinations from time
to time.  In establishing the liabilities and contributions under the Plan, any
actuary retained by the Plan shall use such methods and assumptions as will
reasonably reflect the cost of benefits. The amounts, so contributed, shall be
held in trust by the Trustee for the exclusive benefit of Plan Participants.
The Trustee shall at all times be independent of the Company or any
Participating Employer.

  5.02  Participant Contributions.  No Participant contributions are permitted
        -------------------------                                             
or required to be made to this Plan for the purposes of providing supplemental
unemployment benefits hereunder.

  5.03  Actuarial Methods.  The Plan assets are to be valued on the basis of any
        -----------------                                                       
reasonable method of valuation that takes into account fair market value
pursuant to the regulations prescribed by the Secretary of the Treasury.


                             ARTICLE VI - VALUATION

  6.01  Valuation of the Trust Fund.  The Administrator shall direct the Trustee
        ---------------------------                                             
to determine the net worth of the assets comprising the Trust Fund as of each
December 31 (the "Valuation Date") and at such other date or dates deemed
necessary by the Administrator.  In determining such net worth, the Trustee
shall value the assets comprising the Trust Fund at their fair market value as
of the Valuation Date prior to taking into consideration any contribution for
that Plan year and shall deduct all expenses for which the Trustee has not yet
obtained reimbursement from the Company or the Trust Fund.

  6.02  Method of Valuation.  In determining the fair market value of securities
        -------------------                                                     
held in the Trust Fund which are listed on a registered stock exchange, the
Administrator shall direct the Trustee to value the same at the prices they were
last traded on such exchange preceding the close of business on the valuation
date.  If such securities were not traded on the valuation date or if the
exchange in which they are traded was not open for business on the valuation
date, then the securities shall be valued at the prices at which they were last
traded prior to the valuation date.  Any unlisted security held in the Trust
Fund shall be valued at its bid price next preceding the close of business on
the valuation date, which bid price shall be obtained from a registered broker
or an investment banker.  In determining the fair market value of assets other
than securities for which trading or bid prices can be obtained, the Trustee may
employ one or more appraisers for that purpose and rely on the values
established by such appraiser or appraisers.


                          ARTICLE VII - ADMINISTRATION

  7.01  Powers and Duties of the Company.
        -------------------------------- 

 (a) The Company, acting through its Board of Directors or duly authorized
     Committee, shall be empowered to appoint and remove the Trustee from time
     to time as it deems necessary for the proper 
<PAGE>
 
     administration of the Plan and to insure that the Plan is being operated
     for the exclusive benefit of the Participants and their Beneficiaries in
     accordance with the terms of this Plan, the Code and ERISA.

 (b) The Company or Plan Administrator shall establish a "funding policy and
     method" to determine the short term needs for liquidity and long term goals
     of investment growth.  Such needs and goals shall be communicated to the
     Trustee, but such communication shall not constitute a directive to the
     Trustee as to investment of the Trust funds.  Such "funding policy and
     method" shall be consistent with requirements of Title I of the Act.

 (c) The Company or Plan Administrator may at its discretion appoint an
     Investment Manager, to manage all or designated portion of the assets of
     the Plan.  In such event, the Trustee shall follow the directive of the
     Investment Manager as to the investment of any assets of the Plan managed
     by the Investment Manager.

 (d) The Company or Plan Administrator shall periodically review the performance
     of any fiduciary, Investment Manager or other person to whom duties have
     been delegated or allocated by it under the provisions of this Plan or
     pursuant to procedures established hereunder.

  7.02  Assignment and Designation of Administrative Authority.  The Company
        ------------------------------------------------------              
hereby appoints the Employee Benefits and Investment Committee ("EBAIC") as the
Administrator of this Plan (the "Plan Administrator" or "Committee").  Any
person, including, but not limited to, the directors, shareholders, officers and
employees of the Company, shall be eligible to serve on the Committee.  Any
person so appointed shall signify his acceptance by undertaking the duties
assigned.  Any member of the Committee may resign by delivering written
resignation to the Company.  The Company may also remove any member of the
Committee by delivery of a written notice of removal, which shall take effect
upon delivery or on a date specified.  Upon resignation or removal of a
Committee member, the Company shall promptly designate in writing such other
person or persons as a successor.

  7.03  Allocation and Delegation.  The Committee members may allocate the
        -------------------------                                         
responsibilities among themselves, and shall notify the Company and the Trustee
in writing of such action and the responsibilities allocated to each member.

  7.04  Powers, Duties and Responsibilities.  The Plan Administrator shall
        -----------------------------------                               
administer the Plan for the exclusive benefit of the Participants and their
Beneficiaries, in accordance with the terms of the Plan.  The Plan Administrator
shall have the absolute discretion and power to determine all questions arising
in connection with the administration, interpretation and application of the
Plan.  Any such determination by the Plan Administrator shall be conclusive and
binding upon all persons.  The Plan Administrator may correct any defect or
reconcile any inconsistency in such manner and to such extent as shall be deemed
necessary or advisable to carry out the purposes of the Plan; provided, however,
that such interpretation or construction shall be done in a non-discriminatory
manner and shall be consistent with the intent of the Plan as well as consistent
with Sections 501(c)(17) and 505 of the Code.

  The Plan Administrator shall:

 (a) determine all questions relating to eligibility of Employees to participate
     or continue participation;

 (b) compute, certify and direct the Trustee with respect to the amount and kind
     of benefits to which any Participant shall be entitled hereunder;

 (c) authorize and direct the Trustee with respect to all nondiscretionary or
     otherwise directed disbursements from the Trust;

 (d) maintain all necessary records for the administration of the Plan;

 (e) interpret the provisions of the Plan and to make and publish such rules for
     regulation of the Plan as are consistent with the terms hereof;

 (f) assist any Participant regarding his rights, benefits or elections
     available under the Plan;
<PAGE>
 
 (g) communicate to Employees, Participants and their Beneficiaries directly and
     by a summary plan description outlining the provisions of the Plan.

  7.05  Records and Reports.  The Plan Administrator shall keep a record of all
        -------------------                                                    
actions taken and shall keep such other books of account, records and other
information that may be necessary for proper administration of the Plan.  The
Plan Administrator shall file and distribute all reports that may be required by
the Internal Revenue Service, Department of Labor or others, as required by law.

  7.06  Appointment of Advisors.  The Plan Administrator may appoint
        -----------------------                                     
accountants, actuaries, counsel, advisors and other persons that it deems
necessary or desirable in connection with the administration of the Plan.

  7.07  Payment of Expenses.  All expenses of Plan administration may be paid
        -------------------                                                  
out of the Trust Fund unless paid by the Company.  Such expenses may include
fees of accountants, actuaries, counsel or consultants, and other costs of
administering the Plan.

  7.08  Majority Actions.  The Committee shall act by a majority of their
        ----------------                                                 
numbers, but may authorize one or more of them to sign all papers on their
behalf.

  7.09  Indemnification of Members.  The Company shall indemnify and hold
        --------------------------                                       
harmless any member of the Committee from any liability incurred in his or her
capacity as such for acts which he or she undertakes in good faith as a member
of such Committee.


                        ARTICLE VIII - CLAIM PROCEDURES
                        -------------------------------

  8.01  Reviewing Denied Claims.  Participants who are terminated for the
        ------------------------                                         
reasons set forth in Section 2.02(a)-(d) of the Plan will be deemed to have made
a claim for benefits and no written claim will be required.  If the Plan
Administrator believes that a terminated Participant is not entitled to
benefits, it shall notify the Participant in writing of the denial of benefits
within 90 days of the Participant's termination of service, but this period may
be extended by the Plan Administrator for up to an additional 90 days in special
circumstances.  If such an extension of time is required, the Participant shall
be notified prior to the end of the original 90-day period.  The notice denying
benefits shall (a) set forth the specific reason or reasons for the denial,
making reference to the provisions of the Plan or Plan documents on which the
denial is based, and (b) inform the Participant of his right pursuant to this
Article VIII to request review of the decision by the Plan Administrator.  If a
Participant does not receive benefits within 90 days of his termination of
employment, he should assume that benefits are being denied and may request a
written denial.

  Any Participant who believes that he has improperly been denied benefits may
appeal the denial to the Plan Administrator by submitting a written request for
review to the Plan Administrator within 60 days after the date on which such
denial is received.  Such period may be extended by the Plan Administrator for
good cause.  The person making the request for review may examine pertinent Plan
documents.  The request for review may discuss any issues relevant to the
appeal.  The Plan Administrator shall decide whether or not to approve payment
of benefits within 60 days after receipt of the request for review, but this
period may be extended by the Plan Administrator up to an additional 60 days in
special circumstances.  If such an extension of time for review is required
because of special circumstances, written notice of the extension shall be
furnished to the appellant prior to the commencement of the extension.  The Plan
Administrator's decision shall be in writing, shall include specific reasons for
the decision and shall refer to pertinent provisions of the Plan or Plan
documents on which the decision is based.


                ARTICLE IX - AMENDMENT, TERMINATION AND MERGERS

  9.01  Amendment.  The Company may amend the Plan at any time, in whole or in
        ---------                                                             
part, by action of its Board of Directors or any duly authorized committee or
officer.  However, no such amendment shall authorize or permit any part of the
Trust Fund (other than such part as may be required to pay taxes and
administration expenses), to be used for or diverted to purposes other than the
exclusive benefit of the Participants or their Beneficiaries.

  9.02  Termination.  The Company may terminate the Plan at any time by
        -----------                                                    
resolution of its Board of Directors or any duly authorized committee or
officer.  Upon such termination of the Plan, the Company may direct either:
<PAGE>
 
 (a) complete distribution of the assets in the Trust Fund to the Participants
     or their Beneficiaries as soon as the Trustee deems it to be in the best
     interest of the Participants or their Beneficiaries, which distribution
     shall be made on the basis of objective and reasonable standards which do
     not result in unequal payments to similarly situated members or their
     Beneficiaries or in disproportionate payments to Highly Compensated
     Employees (determined under Code Section 414(q)) of an Employer
     contributing to or otherwise funding this Plan; or

 (b) that any assets remaining in the Plan after the satisfaction of all
     liabilities to the existing Participants or their Beneficiaries be returned
     to the Company.


                      ARTICLE X - PARTICIPATING EMPLOYERS

  10.01  Adoption by Other Entities.  Any affiliate of the Company, with the
         --------------------------                                         
consent of the Board of Directors of the Company or its duly authorized
Committee, may adopt this Plan and all of the provisions hereof and participate
herein and be known as a Participating Employer by properly executing a document
evidencing its intent and the authorization of its Board of Directors (or such
other appropriate governing body).

  10.02  Requirements of Participating Employers.  Each Participating Employer
         ---------------------------------------                              
shall be required to use the same Trustee and Trust as provided in this Plan.
The Trustee shall be authorized to create sub-trusts to separately account for
contributions made by Participating Employers as well as all increments thereof,
but shall not be required to separately invest or segregate such contributions.
Any expenses of the Trust which are to be paid by the Company or borne by the
Trust Fund shall be paid by each Participating Employer in the same proportion
that the total amount standing to the credit of Participants employed by such
Employer bears to the total standing to the credit of all Participants.

  10.03  Designation of Agent.  Each Participating Employer shall be deemed to
         --------------------                                                 
be part of this Plan; provided, however, that each Participating Employer shall
be deemed to have designated irrevocably the Company as its agent for all
purposes (including Plan amendment).  Unless the context of the Plan clearly
indicates the contrary, the word "Company" shall be deemed to mean and include
each Participating Employer as related to its adoption of the Plan.

  10.04  Participating Employer's Contribution and Separate Accounts.  All
         -----------------------------------------------------------      
contributions made by a Participating Employer, as provided for in this Plan,
shall be determined separately on the basis of the cost of the benefits provided
to the Participants employed by such Participating Employer, and shall be paid
to and held by the Trustee for the exclusive benefit of the Participants and
their Beneficiaries, subject to all of the terms and conditions of this Plan.
The Trustee and Administrator shall keep separate accounting of the
contributions of each Participating Employer hereunder and as to the accounts
and credits of such Participant.

  10.05  Discontinuance of Participation.  Any Participating Employer shall be
         -------------------------------                                      
permitted to discontinue its participation in the Plan.  At the time of such
discontinuance, satisfactory evidence thereof shall be delivered to the Trustee
by the discontinuing Participating Employer.  In the event that the
discontinuing Participating Employer had established a new separate Plan for its
Employees, the Trustee shall transfer, deliver and assign contracts or other
Trust Funds allocable to such Participating Employer to such new Trustee as has
been designated by such participating Employer.  If no successor is designated,
the Trustee shall retain such assets for the Participants of said Participating
Employer pursuant to the provisions of the Trust Agreement.


                           ARTICLE XI - MISCELLANEOUS

  11.01  Gender and Number.  Whenever any words are used herein in the
         -----------------                                            
masculine, feminine or neuter gender, they shall be construed as though they
were also used in another gender in all cases where such would apply, and
whenever any words are used herein in the singular or plural form, they shall be
construed as though they were also used in another form in all cases where they
would so apply.
<PAGE>
 
  11.02  Action by the Company.  Whenever the Company under the terms of this
         ---------------------                                               
Plan is permitted or required to do or perform any act or thing, it shall be
done and performed by an officer or committee duly authorized by the Board of
Directors of the Company.

  11.03  Headings.  The headings and subheadings of this Plan have been inserted
         --------                                                               
for convenience of reference only and shall not be used in the construction of
any of the provisions hereof.

  11.04  Uniformity and Non Discrimination.  All provisions of this Plan shall
         ---------------------------------                                    
be interpreted and applied in a uniform nondiscriminatory manner.

  11.05  Anti-alienation Provisions.  Except as may be required to comply with a
         --------------------------                                             
qualified domestic relations order in accordance with Code Section 414(p), any
benefit that may be or become payable under the Plan shall not be subject in any
manner to anticipation, alienation, sale, transfer, assignment, pledge,
encumbrance or charge, and any attempt to anticipate, alienate, sell, transfer,
assign, pledge, encumber or charge any such benefits shall be void; and any such
benefit shall not in any manner be liable for or subject to the debts,
contracts, liabilities, engagements or torts of the person entitled to such
benefit, nor shall it be subject to attachment or legal process for or against
such person.

  If any person entitled to any benefit under the Plan shall become bankrupt or
shall attempt to anticipate, alienate, sell, transfer, assign, pledge, encumber
or charge such benefit, such benefit shall, in the sole discretion of the
Company, cease and terminate, and in that event the Company shall cause such
benefit, or any part thereof, to be held or applied for the benefit of such
person, his Spouse, children, or other dependents, or all or any of them, in
such manner and in such proportion as the Plan Administrator shall determine
proper.

  11.06  Effective Date of Plan.  This Plan shall be effective as of January 1,
         ----------------------                                                
1998, unless a later effective date is specified by a Participating Employer
with respect to its Employees.

  11.07  Plan Year.  The Plan Year of this Plan shall be a twelve-month period
         ---------                                                            
ending December 31.

  11.08  Governing Law.  To the extent that state law has not been preempted by
         -------------                                                         
the provisions of ERISA or any other laws of the United States heretofore or
hereafter enacted, this Plan shall be construed under the laws of the State of
Connecticut.

  11.09  Employment Rights.  Nothing in this Plan shall confer any right upon
         -----------------                                                   
any Employee to be retained in the service of the Company or any of its
affiliates.

  11.10  Incompetency.  In the event that the Plan Administrator determines that
         ------------                                                           
a Participant is unable to care for his affairs because of illness or accident
or any other reason, any amounts payable under this Plan may, unless claim shall
have been made therefor by a duly appointed guardian, conservator, committee or
other legal representative, be paid by the Plan Administrator to the spouse,
child, parent or other blood relative or to any other person deemed by the Plan
Administrator to have incurred expenses for such Participant, and such payment
so made shall be a complete discharge of the liabilities of the Plan therefor.



Dated:                          PRIMEX TECHNOLOGIES, INC.



                                By: /s/ J. C. Picker
                                --------------------

                                Its Vice President of Human Resources
                                    ---------------------------------
                                         and Administration
                                         ------------------