Exhibit
10.21


 





 


Executive Severance Plan

as amended 

effective April 1, 2004


 


Summary Plan Description
(SPD) for Executives at ATK and its associated companies.  April 2004


 


Alliant Techsystems Inc.
(ATK) provides a severance benefit to eligible Executives who are terminated
for convenience or due to lay off or reduction in workforce. Note that
severance is not available in other types of terminations including voluntary
resignation or termination for cause nor is severance available when a
participant is reassigned to another position or offered other employment by a
successor or acquiring company.


 


This document is the
summary plan description (SPD) and contains all the terms of the ATK Executive
Severance (Plan) for eligible employees adopted by the company effective
April 1, 2004.  A Change of Control
does not trigger any benefits under this Plan.


 


A severance payment is
contingent upon a signed (and unrescinded) general release of all claims
against ATK in a form acceptable to ATK. 
Upon official notification of termination, an individual will have a
period of time to consider whether to accept and sign the general release.  An example of the general release is
attached to this SPD.  Its form may vary
from state to state and it may be changed from time to time.


 


 


Questions


 


Contact Employee
Solutions if you have questions about this Plan.  You may obtain a printed copy of this SPD from Employee
Solutions, or you may print a copy from ATKNET (click on Microsoft Word doc).


 


Reservation
of rights


 


ATK reserves the right to change, amend or terminate this
Plan or to change the severance benefit available under the Plan at any time in
ATK’s sole discretion.


 


1

















 


Plan highlights


 


	
  Plan feature

  	
   

  	
  How it works

  
	
   

  	
   

  	
   

  
	
  Plan participation

  	
   

  	
  You automatically become a participant in the Plan
  when you become an Executive employee of ATK or one of its associated
  companies.  If at any time, you are
  demoted or otherwise removed from an Executive position, then you are
  disqualified from participation in this Plan.  Persons in contract or consultant positions are not eligible
  for benefits under this Plan.

  
	
   

  	
   

  	
   

  
	
  Plan cost

  	
   

  	
  ATK will pay the entire cost of severance benefits
  paid under this Plan out of its general funds.

  
	
   

  	
   

  	
   

  
	
  Benefit eligibility

  	
   

  	
  You may be offered a severance benefit if you are
  terminated for convenience or due to layoff or reduction in workforce as
  determined by ATK and all other conditions of the Plan are met.

  
	
   

  	
   

  	
   

  
	
  Form of Benefit

  	
   

  	
  If eligible, you will be provided at least two
  weeks’ notice of your termination date, or pay in lieu of notice, a severance
  benefit that includes a lump-sum severance payment, plus an additional lump-sum payment to offset costs
  to continue health care, and outplacement services.

  
	
   

  	
   

  	
   

  
	
  Benefit amount

  	
   

  	
  For a Tier 1 Executive the amount of severance is
  equal to 12 months of base salary.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  For a Tier 2 Executive the amount of severance is
  based on two weeks of base salary for each full  year of continuous
  service with ATK measured from the most recent hire date
  and calculated  as of the effective date of
  termination.  It includes a minimum
  severance payment of 26 weeks and a maximum severance payment of 39 weeks.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Note that the Plan has a non-duplication of severance benefit
  provision.

  
	
   

  	
   

  	
   

  
	
  General Release

  	
   

  	
  You are required to sign a general release of all
  employment-related claims prior to receiving a severance payment.  This agreement includes post-employment
  restrictions relating to competition and non-solicitation of workforce.

  
	
   

  	
   

  	
   

  
	
  When benefit is payable

  	
   

  	
  Severance is payable after the termination of your
  employment and after the rescission period set in your signed general
  release, if any, has elapsed.

  



 


2

















 


Table of
contents


 


	
  Cover note

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Reservation
  of rights

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Plan highlights

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  About this SPD

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Introduction

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Plan eligibility

  	
   

  	
   

  
	
  Benefit eligibility

  	
   

  	
   

  
	
  Coordination
  with Employment Agreements and other separation benefits

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Form of severance benefit

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Notice

  	
   

  	
   

  
	
  Severance
  Payment

  	
   

  	
   

  
	
  Other
  Severance Benefits

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  General
  provisions

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Year of Service

  	
   

  	
   

  
	
  General Release

  	
   

  	
   

  
	
  Post-Employment
  Restrictions

  	
   

  	
   

  
	
  Benefit
  Prorate (RPT)

  	
   

  	
   

  
	
  Non-duplication

  	
   

  	
   

  
	
  Medical / disability leave
  of absence

  	
   

  	
   

  
	
  Change of
  Control

  	
   

  	
   

  
	
  Amendment
  or Termination

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Administration
  (ERISA)

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  General Release (example)

  	
   

  	
   

  



 


About this SPD


 


•          This
document is the Summary Plan Description (SPD) of the Executive Severance Plan
(Plan).  It explains who is eligible,
what the benefit is, and how and when the benefit may be distributed.


 


•          See
the Administration section for additional administrative information,
including your rights under the Employee Retirement Income Security Act
(ERISA).


 


•          This
SPD is not meant to cover every detail of the Plan.  Complete details are in the plan document that, in all cases,
governs the interpretation, operation, and administration of the Plan.  In the event of a conflict between this SPD
and the plan document or any terms or conditions, the text of the plan document
will prevail.


 


3

















 


Introduction


 


The ATK severance benefit
is designed to provide you with advance notice of termination, a lump sum
severance payment, and other benefits described herein, if you are terminated
for convenience or due to a layoff or reduction in workforce (RIF) from active
regular full-time or regular part-time employment with ATK or any of its
associated companies.


 


For a Tier 1 Executive
the amount of severance is equal to 12 months of base salary.  For a Tier 2 Executive the amount of
severance is based on two weeks of base pay for each full  year of continuous
service with ATK measured from the most recent hire date and calculated  as of the effective date of
termination.  It
may include service with a predecessor company. (See page 9.)  It includes a minimum severance payment of
26 weeks and a maximum severance payment of 39 weeks.


 


Plan eligibility


 


You are eligible to
participate in the Plan if you are an active regular full-time or regular part-time salaried employee
currently in a Tier 1 or Tier 2 Executive position.


 


•                  You
are in a Tier 1
Executive position if you are an officer elected by the ATK
Board of Directors or you are a grade level 22A, 23 or 24.


 


•                  You
are in a Tier 2
Executive position if you are grade level 22B or 22C and are
eligible to participate in the ATK Executive Incentive Program.


 


If you are eligible to
participate in the Plan, you will remain a participant in the Plan until the
earliest of the following events occur:


 


•          You
voluntarily terminate your employment. 
(As used here, this excludes a formal Request for Layoff Consideration,
which may be periodically offered);


 


•          You
are terminated for cause by ATK;


 


•          You
die, retire, or receive all severance benefits provided for under this Plan, or
you no longer qualify to receive benefits under the Plan; or


 


•          ATK
no longer offers the Plan.


 


For
purposes of this Plan, termination for cause shall include termination for (i) any material failure of you to perform
your duties, (ii) gross negligence or willful or intentional wrongdoing or
misconduct, (iii) a material breach by you of any confidentiality agreement
with the Company or duty of loyalty to the Company, (iv) a commission of an act
of personal dishonesty which involved material personal profit in connection
with the Company, or (v) a conviction or guilty plea by you of a felony offense
or a crime involving moral turpitude.  If
ATK so terminates your employment for cause, then you will not be eligible for
severance.  


 


4

















 


You are not eligible
to participate in the Plan if:


 


•          You
are classified as other than a regular employee, e.g., temporary status,
independent contractor, temporary agency employee, consultant, etc.; or


 


•          You
are not an Executive of ATK or an associated company.


 


In addition, you are
disqualified from participation in the Plan if you are not actively at work as
of the effective date of your termination. 
Generally, you are not considered actively at work, if you are on a
leave of absence in excess of ninety (90) consecutive calendar days, and you
are not being paid wages or Paid Time Off. 
(Note: Employees on military leave of absence covered by Uniformed
Services Employment and Reemployment Rights Act (USERRA) are not disqualified
from receiving a severance benefit.)


 


Benefit eligibility


 


If you are eligible to
participate in the Plan, you may qualify for a severance benefit when all of
the following conditions are met:


 


•                  You
are terminated for convenience or due to a layoff or RIF, or ATK otherwise
determines, in its sole discretion, that you are entitled to severance
benefits;


 


•                  You
have signed a general release of all employment-related claims or potential
claims against ATK after you are officially notified of termination and
within the consideration period set in your general release; and


 


•                  The
rescission period set in your general release, if any, has elapsed.


 


For
purposes of this plan, termination for convenience shall mean ATK’s termination of your
employment at any time without cause. 
If ATK so terminates your employment, then you may be eligible for
severance.


 


Even if you are eligible,
you will not qualify for a severance benefit if:


 


•          You
refuse to work during the notice period or fail to satisfactorily perform your
job until your termination date, as determined in the sole discretion of ATK;


 


•          You
refuse to comply with a confidentiality agreement or non-compete agreement or
you disclose ATK trade secrets or confidential or proprietary information;


 


•          You
intentionally damage or refuse to return ATK or customer property;


 


•          You
engage in conduct or behavior that would otherwise lead to termination of your
employment such as disclosing confidential information, disparaging the
company, mistreating or harassing other employees, or violating other workplace
rules or ATK’s Code of Conduct; or


 


•          You
are a participant in the Alliant Techsystems Inc. Income Security Plan and your
termination is a Qualifying Termination as defined under that plan.  Under no circumstances will you receive
benefits under both the Income Security Plan and this Plan as a result of the
termination of your employment.


 


Severance benefits are
not paid under this Plan in the following situations:


 


•          You
are placed on a directed leave of absence or a temporary layoff status, as
determined by the company; or operations have been temporarily interrupted due
to a maintenance or vacation shutdown, material shortage, etc.;


 


5

















 


•          Your
location, business unit, or work function is sold, transferred, outsourced, or
merged with a third party and you are offered employment by or you are
transferred to the purchaser or other third party, whether or not you accept
such employment;


 


•          Your
termination is for cause;


 


•          A
Change of Control occurs;


 


•          You
are transferred from one ATK location to a different ATK location;


 


•          Your
position is eliminated and you are offered a comparable position with ATK
within the same geographic area;


 


•          You
voluntarily terminate, resign, abandon your position (e.g., refuse to work until
your termination date), or fail to return from an approved leave of absence; or


 


•          You
are not eligible on the effective date of your termination from employment with
ATK.


 


Even if severance
benefits have commenced, all remaining benefits will be forfeited and your severance benefit
will be terminated automatically if ATK determines in its sole discretion that:


 


•          You
should have been disqualified or ineligible from receiving benefits because of
one of the conditions listed above;


 


•          You
engage in any conduct that damages ATK’s business or defames or slanders ATK’s
name or business reputation; or


 


•          You
violate any provisions of your signed general release.


 


Coordination with Employment
Agreements and other separation benefits


 


ATK retains the right to enter
into side agreements with you that amend your rights under this Plan.  This Plan does not supersede any additional
rights you may have pursuant to an employment agreement, or under federal or
state law.  However, if you are entitled
to any other severance or termination of employment benefits, other than those
provided by this Plan, then your benefits under this Plan will be reduced by
the amounts of such other payments.  The
severance benefits under this Plan are in lieu of any benefits that may be available
under ATK Severance Plan A and/or ATK Severance Plan B; for Executives, this
Plan governs severance benefits.


 


6

















 


Forms of severance benefit


 


If you meet the plan
eligibility and benefit eligibility requirements contained in this Plan and you
are eligible for a severance benefit, your severance benefit may include the
following:


 


Notice


 


You will normally be given up to two weeks notice of your termination
date.  Unless otherwise directed by ATK,
you are expected to work through your termination date.  Failure to work during the notice period may
disqualify you from receiving severance benefits.  Layoff notification paperwork will include the length of the
notice period.  ATK retains the right to
offer you two weeks’ pay in lieu of notice.


 


Severance Payment


 


•                  Your
severance payment will be paid in a lump sum and will include:


 


•                  For
a Tier 1 Executive:


 


•                  An
amount equal to 12 months (“Severance Period”) of base salary, regardless of
length of service or time in position,


 


•                  Plus an additional lump sum of $15,000.00 to offset
the cost of continuing health care coverage.


 


•                  For
a Tier 2 Executive:


 


•                  An
amount equal to two weeks of base salary for each full year of continuous
service with a minimum of 26 weeks and a maximum of 39 weeks (“Severance
Period”).  For example, a Tier 2
Executive with one year of service is eligible for 26 weeks of base salary
(minimum); a Tier 2 Executive with 14.5 years of service is eligible for 28
weeks of base salary (full years of service multiplied by two weeks of base
salary); and a Tier 2 executive with 21 years of service is eligible for 39
weeks of base salary (maximum).


 


•                  Plus an additional lump sum of $8,000.00 to offset
the cost of continuing health care coverage.


 


Additional notes:


 


•          Taxes
and other required or authorized payroll deductions will be withheld.


 


•          None
of your severance payment will be considered pensionable earnings (for example,
it is not “Earnings” or “Recognized Compensation”) for purposes of any ATK
qualified or non-qualified plan.


 


•          Severance
payments will be reduced by payments made to you under any other severance
plans or employment agreement.


 


•          Any
money you owe ATK that has not been repaid as of your termination date will be
withheld from your severance payment.


 


7

















 


Other Severance Benefits


 


Outplacement
Services:  ATK will provide you with
outplacement services, the scope and provider of which will be determined by
ATK.  You must utilize these
outplacement services within 6 months of your termination date.  You may not receive a cash payment in lieu
of this benefit.


 


Note


 


Stock Options/Restricted
Stock/Performance Shares:  This Plan
does not affect how stock incentives or bonuses such as stock options,
restricted stock, or performance shares are treated at termination of
employment.  The terms of your
individual stock agreements and the plans that govern stock incentives or
bonuses, such as stock options, restricted stock, or performance shares will
govern in the event of the termination of your employment.  Payments for stock options, restricted stock
and performance shares will not be deducted from your severance benefit under
this Plan.


 


8

















 


General provisions


 


Year of Service


 


For purposes of this
Plan, a Tier 2 Executive’s severance payment amount is based on full years of service
with ATK.  Service includes continuous
active regular status employment measured from most recent hire date.  It may also include service with a
predecessor company, i.e. a company that is acquired by ATK.  It does not include time worked as a
temporary status employee, independent contractor, temporary agency employee,
consultant, etc. Service is calculated as of the effective date of termination.


 


If you are a Tier 2 Executive, any period of
employment with a predecessor company will only be included in the calculation
of your severance benefit if (1) you were employed by the predecessor company
on the effective date of its acquisition by ATK, (2) you are eligible to
participate in ATK’s Executive Incentive Program, and (3) your service with the
predecessor company is not specifically excluded by this Plan.  This Plan does not recognize previous
service with Olin Corporation.


 


General Release


 


You are required to sign
a general release of all employment-related claims prior to receiving any
severance benefit.  This general release
includes a release of all claims and causes of action, arising, or which may
have arisen, out of or in connection with your employment or termination from
employment with ATK.  If you are
eligible for a severance payment, you will have up to 45 calendar days to consider signing the
general release.  After you sign the
general release, you will have up to 15 calendar days during which to
rescind the general release.  The
specific length of the consideration period and rescission period, if any, will
be set in your individual general release.


 


Post-Employment
Restrictions


 


Competition Restrictions.  In order to protect ATK’s legitimate
interests, including, but not limited to confidential information, trade
secrets, and customer/vendor relationships, you will not, during the Severance
Period, directly or indirectly, personally engage in, nor shall you own,
manage, operate, join, control, consult with, participate in the ownership,
operation or control of, be employed by, or be connected in any manner with any
person or entity that develops, manufactures, distributes, markets or sells
services or products competitive with those that ATK manufactures, markets or
sells to any customer anywhere in the world, during the Severance Period.  If during your Severance Period, you wish to
obtain other non-competitive employment, you agree to meet and confer in good
faith with ATK prior to accepting such employment.  You will provide ATK with the name of any potential future
employer and give ATK the right to provide a copy of this provision to said
potential employer.


 


Non-Solicitation.  During the Severance Period, you will not,
directly or indirectly solicit any of ATK’s employees for the purpose of hiring
them or inducing them to leave their employment with ATK, nor will you own,
manage, operate, join, control, consult with, participate in the ownership, management,
operation or control of, be employed by, or be connected in any manner with any
person or entity that engages in the conduct proscribed by this paragraph
during the Severance Period.


 


Breach.  If in ATK’s sole determination, you breach
any of these Post-Employment Restrictions, ATK will be entitled to injunctive
relief in addition to any other legal or equitable remedies.  At that time, ATK will immediately
discontinue any remaining severance benefits. 
Further, ATK is entitled to repayment of the percentage of your
severance benefits providing consideration for these provisions.  This percentage will be identified in your
General Release of Claims agreement.


 


9

















 


Benefit prorate (RPT)


 


If on the date your
employment terminates you are classified as a regular part-time employee, your
severance benefit is pro-rated, based on your current base pay and average
number of hours worked over the past six months.


 


Non-duplication provision


 


Full years of service is
measured from your most recent hire date. 
You will not receive a severance benefit for any previous period of
employment regardless of whether you received severance under this Plan, an
earlier ATK plan, or under the plan of a predecessor or affiliated
company.  If due to a unique
circumstance, you received severance pay or paid leave in lieu of service since
your most recent hire date under this Plan, an earlier ATK plan, or under the
plan of a predecessor or affiliated company, then the years of service used to
calculate the severance benefit amount you received will be subtracted from any
future severance benefit.


 


Medical or disability leave


 


Like other employees who
are not actively at work for more than ninety days, employees not at work due to
a medical or disability leave are generally not eligible for severance when
their job position is eliminated.  If
the leave of absence qualifies for Short Term Disability or the employee is in
the first six months of Long Term Disability, and the employee is able to
return to work prior to exhausting Short Term Disability or the first six
months of Long Term Disability, but there is no job position to return to, then
ATK may offer the employee a severance benefit.


 


Change of Control


 


A Change of Control occurs
upon one or more of the following events:


 


•                  Acquisition by an individual, entity or
group of 40 percent or more of ATK’s stock.


 


•                  Consummation of a merger, consolidation
or sale of all or substantially all of ATK’s assets; however, such a transaction
will not be considered a Change of Control if ATK’s shareholders receive 60
percent or more of the new corporation’s stock.


 


•                  A change in the majority of the Board of
Directors.


 


•                  An approval by the shareholders of a
liquidation or dissolution of ATK.


 


•                  Any other circumstances the Board of
Directors deems to be a Change of Control.


 


A Change of Control does
not result from ATK’s insolvency.


 


In the event of a Change
of Control, this Plan may not be amended, changed, or terminated for a period
of one year from the effective date of the acquisition or merger in a manner
that would adversely affect eligible plan participants unless 80 percent of
such participants provide written consent.


 


Plan
may be amended or terminated


 


At any time prior to a
Change of Control, ATK, through the P&C Committee of the Board of
Directors, has the sole discretion to change, amend or terminate this Plan or
to change the severance benefit available under the Plan at any time.


 


10

















 


Administration


 


The Employee Retirement
Income Security Act of 1974 (ERISA) requires that you be given certain
information to help you answer administrative questions about the Plan.  Also detailed in this section is the
appeal process if your claim for benefits is denied, as well as your legal
rights under ERISA.


 


	
  Name of Plan

  	
   

  	
  ATK Plan 5A - Non-Health Welfare Benefit Plan for
  Non-Union Employees

  
	
   

  	
   

  	
   

  
	
  Plan Sponsor and Plan Administrator

  	
   

  	
  Alliant Techsystems Inc.

  5050 Lincoln Drive

  Edina, MN 55436-1097

  1-800-877-2072

  
	
   

  	
   

  	
   

  
	
  Administration

  	
   

  	
  Ultimate responsibility for administration of the
  Plan and interpretation of the Plan’s provisions rests with ATK, acting
  through its officers and employees. The PRC has the exclusive right to make
  final determinations regarding Plan eligibility and to provide conclusive
  interpretation of Plan provisions.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  The CPO has appointed the Alliant Pension and Retirement Committee (PRC) to decide
  appeals of denied claims.  The PRC has
  final discretionary authority to decide claim appeals under this Plan.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Correspondence regarding the Plan  should be directed to the

  Chief People Officer - MN01-1030

  at the company address shown above.

  
	
   

  	
   

  	
   

  
	
  Employer Identification Number

  	
   

  	
  41-1672694

  
	
   

  	
   

  	
   

  
	
  Plan Number

  	
   

  	
  527 (Non Union)

  
	
   

  	
   

  	
   

  
	
  Type of Plan

  	
   

  	
  Welfare plan, Severance

  
	
   

  	
   

  	
   

  
	
  Plan Eligibility

  	
   

  	
  As defined in Eligibility section

  
	
   

  	
   

  	
   

  
	
  Plan Funding

  	
   

  	
  Unfunded - Benefits are paid from Employer’s general
  assets.

  
	
   

  	
   

  	
   

  
	
  Plan Year

  	
   

  	
  The Plan year begins on January 1 and ends on
  December 31.

  
	
   

  	
   

  	
   

  
	
  Agent for Legal Process

  	
   

  	
  General Counsel—MN01-1080

  at the
  company address shown above  

  -or-

  CT Corporation

  405 Second Ave. So.

  Minneapolis, MN  55401

  Note:  CT Corporation has locations in every
  state.

  



 


11

















 


CLAIMS


 


If you believe you may be
entitled to benefits, or you disagree with any decision regarding your benefit,
you should present a written claim / appeal to ATK Employee
Solutions at the following address. (An oral claim or request for review is not
sufficient.)


 


Alliant Techsystems Inc. 

Attn: Chief
People Officer – MN01-1030

5050 Lincoln Drive


Edina,
MN 55436-1097

1-800-277-8072


 


If you do not file a
written claim or follow the claims procedures, you may give up legal rights.


 


A
Claim for Benefits


 


A “claim” for benefits is
a request for benefits under the Plan filed in accordance with the Plan’s
claims procedures. To make a claim or request review of a denied claim, you
must file a written claim with ATK Employee Solutions at the address shown
above.  An oral claim or request for
review is not sufficient.


 


Steps in Filing a Claim


 


Time for
Filing a Claim.  You must
file your written claim with ATK Employee Solutions within 1 year after the
date you knew or reasonably should have known of the facts behind your claim.


 


Filing a
Claim.  You must file your claim with
ATK Employee Solutions at the address noted above.  You must include the facts and arguments that you want considered
during the claims procedure.


 


Response
from ATK Employee Solutions.  Within
90 days of the date ATK Employee Solutions receives your claim, you will
receive a written or electronic notice of the decision or a notice describing
the need for additional time (up to 90 additional days) to reach a
decision.  If ATK Employee Solutions notifies
you that it needs additional time, the notice will describe the special
circumstances requiring the extension and the date by which it expects to reach
a decision.  If ATK Employee Solutions
denies your claim, in whole or in part, you will receive a notice specifying
the reasons, the Plan provisions on which it is based, a description of
additional material (if any) needed to perfect the claim, your right to file a
civil action under section 502(a) of the Employee Retirement Income
Security Act of 1974, as amended (“ERISA”), if your claim is denied upon
review, and it will also explain your right to request a review.


 


Steps in Filing Request for Review.


 


Time for
Filing a Request for Review.  If ATK Employee Solutions denies your claim, you may request a
review of your claim by the ATK Pension and Retirement Committee (ATK PRC).  ATK Employee Solutions must receive actual
delivery of your written request for review within 60 days after the date you
receive notice that your claim was denied.


 


Filing a Request
for Review of a Denied Claim.  You may file a request for review of a denied claim with ATK
Employee Solutions, which will be
forwarded to the ATK PRC. Your request must include issues that
you want considered in the review.  You
may submit written comments, documents, records, and other information relating
to your claim.  Upon request, you are
entitled to receive free of charge reasonable access to and copies of the
relevant documents, records, and information used in the claims process.


 


12

















 


Response
from ATK PRC on Review. Within 60 days after the date ATK Employee
Solutions receives your request, you will receive a written or electronic
notice of the decision or a notice describing the need for
additional time (up to 60 additional days) to reach a decision.  If you are notified that the PRC needs
additional time, the notice will describe the special circumstances requiring
the extension and the date by which it expects to reach a decision.  If the PRC affirms the denial of your claim,
in whole or in part, you will receive a notice specifying the reasons, the Plan
provisions on which it is based, notice that upon request you are entitled to
receive free of charge reasonable access to and copies of the relevant
documents, records, and information used in the claims process, and your right
to file a civil action under section 502(a) of ERISA.


 


If the PRC  Requests Further Information Regarding
Your Claim on Review.  If the
PRC determines it needs further information to complete its review of your
denied claim, you will receive a written notice describing the additional
information necessary to make the decision. 
You will then have 60 days from the date you receive the notice
requesting additional information to provide it to the PRC.  The time between the date the PRC  sends
its request to you and the date it receives the requested additional
information from you shall not count against the 60-day period in which the PRC
has to decide your claim on review.  If
the PRC does not receive a
response, then the period by which the PRC must reach its decision shall be
extended by the 60-day period provided to you to submit the additional
information.  Note:  If special circumstances exist, this period
may be further extended.


 


In General.  The PRC,  or
its designee, will make all decisions on claims and review of claims.  With respect to the review of original and
denied claims, the PRC has the sole discretion, final authority, and
responsibility to decide all factual and legal questions under the Plan.  This includes interpreting and construing
the Plan and any ambiguous or unclear terms, and determining whether a claimant
is eligible for benefits and the amount of the benefits, if any, a claimant is
entitled to receive.  The PRC may hold
hearings and reserves the right to delegate its authority to make decisions.
The PRC may rely on any applicable statute of limitations as a basis to deny a
claim.  The PRC’s decisions are
conclusive and binding on all parties. 
You may, at your own expense, have an attorney or representative act on
your behalf, but the PRC reserves the right to require a written authorization
for a person to act on your behalf.


 


Time Periods.  The time
period for review of your claim begins to run on the date ATK Employee
Solutions receives your written claim. 
Similarly, if you file a timely request for review, the review period
begins to run on the date ATK Employee Solutions receives your written request.  In both cases, the time period begins to run
regardless of whether you submit comments or information that you would like to
be considered on review.


 


Limitations Period.  If you file
your claim within the required time, complete the entire claims procedure, and
the PRC denies your claim after you request a review, you may sue over your
claim (unless you have executed a release on your claim).  You must, however, commence that suit within
30 months after you knew or reasonably should have known of the facts behind
your claim or, if earlier, within 6 months after the claims procedure is
completed.


 


Exhaustion of Administrative Remedies. 
Before commencing legal action to recover benefits, or to enforce or
clarify rights, you must completely exhaust the Plan’s claim and review
procedures.


 


Administrative Safeguards.  The Plan
uses the claims procedures outlined herein and the review by the PRC as
administrative processes and safeguards to ensure that the Plan’s provisions
are correctly and consistently applied.


 


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The PRC has the sole discretion, authority, and
responsibility to decide all factual and legal questions under the Plan.  This includes interpreting and construing
the plan document and any ambiguous or unclear terms within the plan document,
and determining whether a claimant is eligible for benefits under the Plan and
the amount of the benefits, if any, a claimant is entitled to receive.  The PRC’s decisions are conclusive and
binding on all parties.


 


Your legal rights.  As a
participant in this Plan, you are entitled to certain rights and protections
under the Employee Retirement Income Security Act of 1974 (ERISA).  ERISA requires that all Plan participants
shall be entitled to:


 


•          Examine
all Plan documents, including insurance contracts and collective bargaining
agreements that govern the Plan, and a copy of the latest annual report (Form
5500) filed by the Plan with the U.S. Department of Labor and available at the
Public Disclosure Room of the Employee Benefits Security Administration (“EBSA”).  These documents are available for inspection
at no charge in the Plan Administrator’s office, and other specified locations,
such as worksites and union halls.


 


•          Obtain,
upon written request to the Plan Administrator, copies of documents governing the
operation of the Plan, including insurance contracts and collective bargaining
agreements, and copies of the latest annual report (Form 5500 Series) and
updated summary plan description.  The
Plan Administrator may charge a reasonable amount for the copies.


 


•          Receive
a summary of the annual financial report for any plan that pertains to
you.  The Plan Administrator is required
to furnish you with financial summaries called Summary Annual Reports (SARs).


 


Prudent Actions By Plan Fiduciaries


 


In addition to creating
certain rights for plan participants, ERISA imposes certain duties on the
people who are responsible for the operation of the employee benefit
plans.  The people who operate your
plan, called “fiduciaries” of the plan, have a duty to do so prudently and in
the interest of you and other plan participants and beneficiaries.


 


No one including your
employer, your union, or and other person, may fire you or otherwise
discriminate against you in any way to prevent you from obtaining a benefit or
exercising your rights under ERISA.


 


Enforce Your Rights


 


If your claim for a
welfare benefit is denied or ignored, in whole or in part, you have a right to
know why this as done, to obtain copies of documents relating to the decision
without charges and to appeal any denial, all within certain time schedules.


 


Under ERISA, there are
steps you can take to enforce the above rights.  For instance, if you request in writing a copy of plan documents
or the latest annual report from the plan and do not receive them within 30
days, you may file suit in Federal court. 
In such a case, the court may require the Plan Administrator to provide
the materials to you and pay you up to $110 a day until you receive the
materials, unless the materials were not sent because of reasons beyond the
control of the Plan Administrator.


 


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If you have a claim for
benefits that is denied or ignored, in whole or in part, you may file suit in a
state or Federal court.  In addition, if
you disagree with the Plan’s decision or lack thereof concerning the qualified
status of a domestic relations order or a medical child support order, you may
file suit in Federal court.  If it
should happen that the Plan fiduciaries misuse the Plan’s money, or if you are
discriminated against for asserting your rights, you may seek assistance from
the U.S. Department of Labor, or you may file suit in Federal court.  The court will decide who should pay court
costs and legal fees.  If you are
successful, the court may order the person or entity you have sued to pay these
costs and fees.  If you lose, the court
may order you to pay these costs and fees (for example, if the court finds your
claim frivolous).


 


Assistance With Your Questions


 


If you have any questions
about your benefits, you should contact the Plan Administrator.  If you have any questions about this
statement or about your rights under ERISA, or if you need assistance in
obtaining documents from the Plan Administrator, you should contact the nearest
area office of the Employee Benefits Security Administration, U.S. Department
of Labor, listed in your telephone directory, or the Division of Technical
Assistance and Inquiries, Employee Benefit Security Administration, U.S.
Department of Labor, 200 Constitution Avenue N.W., Washington DC 20210.  You may also obtain certain publications
about your rights and responsibilities under ERISA by calling the publications
hotline of the Employee Benefits Security Administration.


 


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