THIOKOL CORPORATION
                          KEY EXECUTIVE BONUS PLAN

                          AS AMENDED AND RESTATED
                          EFFECTIVE JUNE 16, 1997







<PAGE>


                             TABLE OF CONTENTS


SECTION                                                                 PAGE
-------                                                                 ----
 1   PURPOSE OF THE PLAN                                                 1
 2   DEFINITIONS                                                         1
 3   ELIGIBILITY FOR PARTICIPATION                                       7
 4   TARGET BONUS OPPORTUNITY                                            7
 5   SETTING THE PERFORMANCE GOALS                                       8
 6   CALCULATION OF THE ACTUAL BONUS AWARD                               9
 7   SPECIAL PARTICIPANTS AND DISCRETIONARY
     BONUS                                                              19
 8   COMPENSATION NATURE OF THE TARGET BONUS
     OPPORTUNITY AND ACTUAL BONUS AWARD                                 19
 9   METHOD OF PAYMENT OF ACTUAL BONUS AWARD
     AND TAX WITHHOLDING                                                20
10   TERMINATION OF EMPLOYMENT, CROSS-
     TRANSFER, PROMOTION AND DEMOTION                                   20
11   CHANGE OF CONTROL                                                  22
12   ADMINISTRATION AND MODIFICATION OF
     THE PLAN                                                           25
13   AMENDMENT OR TERMINATION OF PLAN
     AND DURATION OF PLAN                                               26
14   PLAN NOT A CONTRACT OF EMPLOYMENT                                  27
15   NON-ASSIGNABILITY OF RIGHTS                                        27






<PAGE>



                            THIOKOL CORPORATION
                          KEY EXECUTIVE BONUS PLAN


SECTION 1 - PURPOSE OF THE PLAN
-------------------------------

The  Thiokol  Key  Executive  Bonus  Plan  is  principally  designed  as  a
short-term  incentive  compensation  bonus plan for selected key  executive
officers  and  employees  of  Thiokol   Corporation   whose   positions  of
responsibility   enable  them  to  significantly  affect  the  success  and
profitability of the Corporation.  Adopted by the Board of Directors of the
Corporation, June 18, 1992 and amended and restated June 16, 1997, the Plan
provides an annual cash bonus  opportunity to each Participant based on the
respective performance of the Corporation, or the Participant's Division or
Operating  Unit towards  specific  pre-determined  financial  goals and the
individual Participant's achievement of specified Strategic Goals.

SECTION 2 - DEFINITIONS
-----------------------

2.0       As used herein the terms below shall have the following meanings.
          Any of these terms, unless the context otherwise requires, may be
          used in the singular or plural depending upon the reference.

2.1       "Actual  Bonus  Award"  means the actual  bonus award earned by a
          Participant  as  incentive   compensation   for  each  Plan  Year
          calculated in the manner described in Section 6 hereof.

2.2       "Actual  Performance  Results" means: (i) the actual Earnings Per
          Share and Corporate  Strategic  Goals  achieved for the Plan Year
          for  Group  A  Participants;  (ii)  actual  Earnings  Per  Share,
          Operating  Unit Net Profit and  Operating  Unit  Strategic  Goals
          achieved for the Plan Year for Group B

                                     1

<PAGE>

Participants,  and;  (iii) the  Operating  Unit Net  Profit,  Division  Net
Profit, and Division Strategic Goals achieved for the Plan Year for Group C
Participants.

2.3       "Base Annual  Salary"  means the  Participant's  base  annualized
          salary for the Salary Grade for which a  Participant  is assigned
          by the Committee  July 1 of the Plan Year. The Base Annual Salary
          on which the Actual  Bonus  Award will be paid shall be  adjusted
          for  the  amount  of  any  increase  (or   decrease)   granted  a
          Participant  within the  Participant's  designated  Salary  Grade
          during  the  Plan  Year.  Such  adjustment  shall  be made by the
          weighed average of the Base Salary for the period  comprising the
          number of months in the Plan Year at the rate in effect on July 1
          and the number of months at the rate in effect subsequent to such
          increase (or decrease) or increases or decreases if more than one
          during the Plan Year.

2.4       "Board  of  Directors"  means  the  Board  of  Directors  of  the
          Corporation as constituted from time to time.

2.5       "Chairman"  means the  Chairman of the Board of  Directors of the
          Corporation.

2.6       "Committee"  means  the  Compensation  Committee  of the Board of
          Directors charged with administering the Plan.

2.7       "Consolidated  Balance  Sheet"  means  the  balance  sheet of the
          Corporation and its subsidiaries prepared on a consolidated basis
          in accordance with generally accepted accounting practices.

2.8       "Consolidated  Income  Statement"  of the  Corporation  means the
          income statement of the Corporation and its subsidiaries prepared
          on a 

                                     2

<PAGE>

          consolidated   basis  in  accordance   with  generally   accepted
          accounting practices.

2.9       "Corporate  Strategic  Goals"  means  the  written  and  weighted
          Strategic  Goals of the  Corporation for each Group A Participant
          approved by the Committee for the Plan Year.

2.10      "Corporation"  or "Company"  means  Thiokol  Corporation  and its
          subsidiaries.

2.11      "Corporation  Performance  Goals" means the performance goals set
          by the  Committee  for  Group  A  Participants  comprised  of two
          components:  (i)  the  Earnings  Per  Share  Goal  and  (ii)  the
          Corporate Strategic Goals.

2.12      "Division"  means a  distinct  measurable  profit  center  of the
          Corporation or any subsidiary,  division or a branch, domestic or
          foreign,  of the  Corporation,  designated  by the Committee as a
          division  for the  purposes  of this  Plan  and may  include  the
          consolidation of business units.

2.13      "Division  Net  Profit"  means  the  net  pre-tax  profit  of the
          Division  net  of  all  year-end   adjustments  included  in  the
          Consolidate  Income  Statement  of the  Corporation  for the Plan
          Year.

2.14      "Division Net Profit Goal" means the division net profit goal set
          by the  Committee at the  beginning of the Plan Year on which the
          Target Opportunity is based.

2.15      "Division  Performance  Goals" means the performance goals set by
          the  Committee  for  Group  C  Participants  comprised  of  three
          components: (i) the Operating Unit Net Profit Goal, (ii) Division
          Net Profit Goal, and (iii) the Division Strategic Goals.

                                     3

<PAGE>

2.16      "Division   Strategic  Goals"  means  the  written  and  weighted
          Strategic Goals of the Division of the Corporation for each Group
          C Participant approved by the Committee for the Plan Year.

2.17      "Earnings  Per Share"  means the  earnings per share shown on the
          Corporation's  Consolidated Statement of Income at the end of the
          Plan Year.

2.18      "Earnings  Per Share Goal" means the  Earnings Per Share Goal set
          by the  Committee at the  beginning of the Plan Year on which the
          Target Bonus Opportunity is based.

2.19      "Group A  Participant"  means  those  persons  designated  by the
          Committee for the Plan Year to be Group A Participants.

2.20      "Group B  Participant"  means  those  persons  designated  by the
          Committee for the Plan Year to be Group B Participants.

2.21      "Group C  Participant"  means  those  persons  designated  by the
          Committee for the Plan Year to be Group C Participants.

2.22      "Operating Unit" means a distinct measurable profit center of the
          Corporation or any subsidiary, division, or a branch, domestic or
          foreign,  of the  Corporation  designated  by the Committee as an
          operating  unit for the purposes of this Plan and may include the
          consolidation of business units.

2.23      "Operating  Unit Net Profit" means the net pre-tax  profit of the
          Operating  Unit net of all year-end  adjustments  included in the
          Consolidated  Income  Statement of the  Corporation  for the Plan
          Year.

                                     4

<PAGE>

2.24      "Operating  Unit Net Profit  Goal" means the  Operating  Unit Net
          Profit set by the  Committee at the beginning of the Plan Year on
          which the Target Bonus Opportunity is based.

2.25      "Operating Unit  Performance  Goals" means the performance  goals
          set by the Committee for Group B Participants  comprised of three
          components  (i) the Earnings Per Share Goal,  (ii) Operating Unit
          Net Profit Goal and (iii) the Operating Unit Strategic Goal.

2.26      "Operating  Unit Strategic  Goals" means the written and weighted
          Strategic   Goals  of  the  Operating   Unit  for  each  Group  B
          Participant approved by the Committee for the Plan Year.

2.27      "Participant"  means any person,  selected by the  Committee  for
          participation  in this Plan, as either a Group A  Participant,  a
          Group  B  Participant,   a  Group  C  Participant  or  a  Special
          Participant  and who has  agreed to  participate  in this Plan as
          provided in Section 3, hereof.

2.28      "Performance  Goals"  means the  Corporation  Performance  Goals,
          Division  Performance  Goals and Operating Unit Performance Goals
          set by the Committee as the performance  goals to be achieved for
          the Plan Year.

2.29      "Plan" means the Thiokol  Corporation  Key Executive  Bonus Plan.
          The first Plan shall be effective  for the  Corporation's  fiscal
          year beginning July 1, 1997.

2.30      "Plan  Year"  means the  fiscal  year of the  Corporation  July 1
          through June 30.


                                     5
<PAGE>

2.31      "Salary  Grade"  means  the  salary  classification  to  which  a
          Participant is assigned by the Committee.

2.32      "Special Participant" means an individual designated as a special
          participant by the Committee to receive a discretionary  bonus as
          set forth in Section 7 hereof.

2.33      "Strategic Goals" means the Corporate  Strategic Goals,  Division
          Strategic Goals and Operating Unit Strategic Goals. The Strategic
          Goals  are the  strategic  goals set  forth in  writing  for each
          Participant  at the  beginning  of the Plan Year  approved by the
          Committee  defining  the  Strategic  Goals and  direction  of the
          Corporation for each Group A Participant,  the Operating Unit for
          each  Group  B   Participant   and  Division  for  each  Group  C
          Participant  and the  specific  goals to be achieved by each such
          Participant.  Each of such Strategic Goals, which may be either a
          financial or qualitative  goal or a combination  thereof for each
          such Participant, shall be assigned a weight such as to rank it's
          relative  importance in relation to the other Strategic Goals and
          the sum total of the  weights  for all such goals shall equal one
          hundred  (100).  In the event any such goals  requires  more than
          twelve months to complete, a written measurable criteria shall be
          included in each of such goals against which performance  results
          towards  achieving  such goals can be measured for the Plan Year.
          At the end of the  Plan  Year  the  Committee  shall  review  the
          Strategic Goals achieved in relationship to these Strategic Goals
          set at the  beginning of the Plan Year and determine if each such
          Strategic  Goal was either (i) not met; (ii) partially met; (iii)
          substantially met or (iv) all met as set forth in Table 7 hereof.

2.34      "Subsidiary" means a corporation,  both domestic and foreign,  at
          least eighty-five  percent (85%) of the outstanding  voting stock
          of which is owned, directly or indirectly,  by the Corporation or
          any subsidiary of the

                                     6

<PAGE>

          Corporation.

2.35      Target"  means the  percentage  determined  by the  Participant's
          Salary  Grade,  as set forth in Table 1 in  Section 4 hereof,  on
          which the Target Bonus Opportunity is calculated.

2.36      "Target  Bonus   Opportunity"  means  the  dollar  value  of  the
          incentive   compensation   bonus  opportunity   awarded  to  each
          Participant  at the  beginning  of each Plan Year  based upon the
          Participant's Base Annual Salary,  Salary Grade and corresponding
          Target.

SECTION 3 - ELIGIBILITY FOR PARTICIPATION
-----------------------------------------

To be eligible for  participation  in the Plan, a person must be designated
either a Group A Participant,  Group B Participant,  Group C Participant or
Special  Participant  by  the  Committee  and  agree  in  writing  to  be a
participant  in the Plan  bound  by the  terms  and  conditions  hereof  by
executing  the  participant  acknowledgment.   Special  Participants  shall
participate upon such terms and conditions as the Committee may designate.

SECTION 4 - TARGET BONUS OPPORTUNITY
------------------------------------

The Target Bonus  Opportunity for each  Participant is set at the beginning
of each  Plan  Year  and  shall be based on the  Salary  Grade  and  Target
expressed as a percent set forth in Table 1:

                                     7
<PAGE>



==============================================================================
                                  TABLE 1
                          TARGET BONUS OPPORTUNITY
==============================================================================

   SALARY GRADE                                                  TARGET
------------------------------------------------------------------------------

        7                                                         70%
------------------------------------------------------------------------------

        6                                                         55%
------------------------------------------------------------------------------

        5                                                         50%
------------------------------------------------------------------------------

        4                                                         40%
------------------------------------------------------------------------------

        3                                                         30%
------------------------------------------------------------------------------


The Target Bonus  Opportunity  shall equal the amount of the  Participant's
Base Annual Salary multiplied by the corresponding  Target,  expressed as a
percent set forth Opposite the Participant's Salary Grade shown in Table 1.

The Target Bonus Opportunity is calculated by the following formula:

         Target Bonus Opportunity = Base Annual Salary X Target(1)

SECTION 5 - SETTING THE PERFORMANCE GOALS
-----------------------------------------

At the beginning of the Plan Year, the Committee  shall set the Performance
Goals   consisting  of  the  Corporate   Performance   Goals  for  Group  A
Participants;  the Operating Unit Goals for Group B  Participants;  and the
Division Goals for Group C Participants.




__________________________________________

(1) Target expressed as a percent based on Participant's Salary Grade-Table 1.


                                     8
<PAGE>


SECTION 6 - CALCULATION OF THE ACTUAL BONUS AWARD
-------------------------------------------------

The Actual  Bonus  Award that may be earned by a  Participant  for the Plan
Year is expressed as a percentage of the Target Bonus  Opportunity based on
the Actual Performance Results achieved for the Plan Year. The Actual Bonus
Award is calculated as hereinafter described.

Group A Participants:
---------------------

For Group A Participants,  the amount of the Actual Bonus Award that may be
earned shall be based on an  attainment of the Earnings Per Share Goals and
Participant  Strategic Goals expressed as a percentage of the Participant's
Target Bonus Opportunity in Table 2 and Table 7.

The value of the  Actual  Bonus  Award  Earned by Group A  Participants  is
defined by the following formula:


                                     9
<PAGE>



                             EARNINGS PER SHARE
                             ------------------


LINE A

                             Percent of Target Bonus
Target Bonus Opportunity  X  Opportunity which may be earned     =$     Award 
                             as an Actual Bonus Award from Table 2

                               PLUS OR MINUS
                               -------------


                                 CORPORATE
                              STRATEGIC GOALS
                              ---------------

LINE B
                               Percent of Target Bonus
Target Bonus Opportunity   X   Opportunity which may be earned     =$    Award
                               as an  Actual   Bonus  Award  from
                               Table 7
                                                                      --------

                                   EQUALS
                                   ------

Total Value of Actual Bonus Award (Line A +(-) Line B)           =     $ Award


                                    10
<PAGE>

==============================================================================
                                  TABLE 2
                            GROUP A PARTICIPANTS
                             EARNINGS PER SHARE
                              PERFORMANCE GOAL

==============================================================================

Actual EPS Achieved measured against    Percentage of Target Bonus Opportunity
EPS Goal                                which may be earned as an Actual Bonus
                                        Award
------------------------------------------------------------------------------


    Below 90% of Goal                                    0%
------------------------------------------------------------------------------

      90% of Goal                                       35%
------------------------------------------------------------------------------

      95% of Goal                                     67.5%
------------------------------------------------------------------------------

     100% of Goal                                      100%
------------------------------------------------------------------------------

     105% of Goal                                      133%
------------------------------------------------------------------------------

     110% of Goal                                      167%
------------------------------------------------------------------------------

     115% of Goal                                      200%
------------------------------------------------------------------------------

   Above 115% of Goal                                  200%
------------------------------------------------------------------------------

For performance results between the EPS rates shown,  linear  interpolation
set forth in Exhibit A will be used to compute the Actual Bonus Award.
==============================================================================


Group B Participants:

For Group B Participants,  the amount of the Actual Bonus Award that may be
earned shall be based on attainment  of the Earnings Per Share  Performance
Goal,  Operating Unit Net Profit Performance Goal, and Operating  Strategic
Goal  expressed  as  a  percentage  of  the   Participant's   Target  Bonus
Opportunity in Table 3, Table 4 and Table 7.

The value of the  Actual  Bonus  Award  Earned by Group B  Participants  is
defined by the following formula:

                                    11

<PAGE>

                             EARNINGS PER SHARE
                             ------------------

LINE A

                               Percent of Target Bonus
Target Bonus Opportunity   X   Opportunity which may be earned   =     $Award 
                               as an Actual Bonus Award from
                               Table 3

                                    PLUS
                                    ----

                               OPERATING UNIT
                                 NET PROFIT

LINE B
                                Percent of Target Bonus
Target Bonus Opportunity   X    Opportunity which may be earned  =     $ Award
                                as an Actual Bonus Award from
                                Table 4

                               PLUS OR MINUS
                               -------------

                               OPERATING UNIT
                              STRATEGIC GOALS
                              ---------------
LINE C

                               Percent of Target Bonus
Target Bonus Opportunity   X   Opportunity which may be earned  =      $ Award
                               as an  Actual   Bonus  Award
                               from Table 7


                                                                      --------
                                   EQUALS
                                   ------

Total Value of Actual Bonus Award (Line A + Line B +(-) Line C) =   $    Award


                                    12
<PAGE>




==============================================================================

                                     TABLE 3

                              GROUP B PARTICIPANTS
                               EARNINGS PER SHARE
                                PERFORMANCE GOAL

==============================================================================


Actual EPS Achieved measured            Percentage of Target Bonus Opportunity
against EPS Goal                        which may be earned as an Actual Bonus
                                        Award
------------------------------------------------------------------------------

   Below 90% of Goal                                     0%
------------------------------------------------------------------------------

       90% of Goal                                      10%
------------------------------------------------------------------------------

       95% of Goal                                    17.5%
------------------------------------------------------------------------------

      100% of Goal                                      25%
------------------------------------------------------------------------------

      105% of Goal                                      33%
------------------------------------------------------------------------------

      110% of Goal                                      42%
------------------------------------------------------------------------------

      115% of Goal                                      50%
------------------------------------------------------------------------------

  Above 115% of Goal                                    50%
------------------------------------------------------------------------------

For performance results between the EPS rates shown,  linear  interpolation
set forth in Exhibit A-1 will be used to compute the Actual Bonus Award.
==============================================================================


                                       13
<PAGE>

==============================================================================

                                  TABLE 4

                            GROUP B PARTICIPANTS
                         OPERATING UNIT NET PROFIT
                              PERFORMANCE GOAL
==============================================================================


Actual Operating Unit Net                     Percentage of Target Bonus
Profit Achieved measured                      Opportunity which may be earned
against Operating Unit                        as an Actual Bonus Award
Net Profit Goal
------------------------------------------------------------------------------

     Below 90% of Goal                                     0%
 -----------------------------------------------------------------------------

      90% of Goal                                         25%
------------------------------------------------------------------------------

      95% of Goal                                         50%
------------------------------------------------------------------------------

     100% of Goal                                         75%
------------------------------------------------------------------------------
     105% of Goal                                        100%
 -----------------------------------------------------------------------------
     110% of Goal                                        125%
------------------------------------------------------------------------------
     115% of Goal                                        150%
------------------------------------------------------------------------------
   Above 115% of Goal                                    150%
 -----------------------------------------------------------------------------

For performance results between the Operating Unit Net Profit rates shown,
linear  interpolation  set forth in Exhibit A-2 will be used to compute the
Actual Bonus Award.
==============================================================================


Group C Participants:

For Group C Participants,  the amount of the Actual Bonus Award that may be
earned  shall be based  on  attainment  of the  Operating  Unit Net  Profit
Performance  Goal,  Division Net Profit  Performance Goal and Participant's
Strategic Goals expressed as a percentage of the Participant's Target Bonus
Opportunity in Table 5, Table 6 and Table 7.

The value of the  Actual  Bonus  Award  Earned by Group C  Participants  is
defined by the following formula:

                                    14
<PAGE>


                         OPERATING UNIT NET PROFIT
                         -------------------------

LINE A

                           Percent of Target Bonus
Target Bonus Opportunity X Opportunity which may be earned   =      $ Award
                           as an  Actual   Bonus  Award
                           from Table 5

                                    PLUS
                                    ----


                                  DIVISION
                                 NET PROFIT
                                 ----------

LINE B
                           Percent of Target Bonus
Target Bonus Opportunity X Opportunity which may be earned  =        $ Award
                           as an Actual Bonus Award 
                           from Table 6

                               PLUS OR MINUS
                               -------------


                                  DIVISION
                              STRATEGIC GOALS
                              ---------------

LINE C
                           Percent of Target Bonus
Target Bonus Opportunity X Opportunity which may be earned  =        $ Award 
                           as an  Actual   Bonus  Award
                           from Table 7


                                                                      --------
                                   

                                  EQUALS
                                  ------

Total Value of Actual Bonus Award (Line A + Line B +(-) Line C)  =     $ Award

                                    15
<PAGE>



==============================================================================

                                  TABLE 5

                            GROUP C PARTICIPANTS
                         OPERATING UNIT NET PROFIT
                              PERFORMANCE GOAL
==============================================================================


Actual Operating  Unit  Net                  Percentage of Target Bonus
Profit  Achieved measured against            Opportunity which may be earned
Operating Unit Net Profit Goal               as an Actual Bonus Award
------------------------------------------------------------------------------

    Below 90% of Goal                                      0%
------------------------------------------------------------------------------
      90% of Goal                                         10%
------------------------------------------------------------------------------
      95% of Goal                                       17.5%
------------------------------------------------------------------------------
     100% of Goal                                         25%
------------------------------------------------------------------------------
     105 % of Goal                                        33%
------------------------------------------------------------------------------
      110% of Goal                                        42%
------------------------------------------------------------------------------
      115% of Goal                                        50%
------------------------------------------------------------------------------
   Above 115% of Goal                                     50%
==============================================================================

For performance  results between the Operating Unit Net Profit rates shown,
linear  interpolation  set forth in Exhibit A-3 will be used to compute the
Actual Bonus Award.
==============================================================================



                                    16
<PAGE>



==============================================================================

                                  TABLE 6

                            GROUP C PARTICIPANTS
                            DIVISION NET PROFIT
                              PERFORMANCE GOAL
==============================================================================


Actual  Operating Unit Net Profit            Percentage of Target Bonus    
Achieved measured against Operating          Opportunity which may be earned
Unit Net Profit Goal                         as an actual Bonus Award

==============================================================================

    Below 90% of Goal                                      0%
------------------------------------------------------------------------------
      90% of Goal                                         25%
------------------------------------------------------------------------------
      95% of Goal                                         50%
------------------------------------------------------------------------------
     100% of Goal                                         75%
------------------------------------------------------------------------------
     105% of Goal                                        100%
------------------------------------------------------------------------------
     110% of Goal                                        125%
------------------------------------------------------------------------------
     115% of Goal                                        150%
------------------------------------------------------------------------------
  Above 115% of Goal                                     150%
==============================================================================


For performance results between the Division Net Profit rates shown, linear
interpolation  set forth in Exhibit  A-4 will be used to compute the Actual
Bonus Award.
==============================================================================


                                    17
<PAGE>


Strategic Goals:

For Group A  Participants,  Group B Participants  and Group C Participants,
the  Actual  Bonus  Award  that  may be  earned  by  Participants  based on
attainment  of  Strategic  goals  is set  forth  in  Table  7.  Either  the
attainment or failure to attain the Strategic Goals, as the case may be, is
independent  and  separate  from  the  Actual  Bonus  Award  paid  for  the
attainment  of the  Earnings  Per  Share  Goal  for  Group A  Participants;
attainment of the Earnings Per Share and Operating Unit Net Profit Goal for
Group B Participants;  and attainment of the Operating Unit Net Profit Goal
and  Division  Net Profit Goal for Group C  Participants.  No Actual  Bonus
Award will be earned is Strategic Goals are not met.


==============================================================================

                                 TABLE 7

                 GROUP A, GROUP B AND GROUP C PARTICIPANTS
                              STRATEGIC GOALS

==============================================================================


Actual Strategic Goals Achieved              Percentage of Target Bonus
measured against Strategic Goals Set         Opportunity which may be earned
                                             as an Actual Bonus Award
------------------------------------------------------------------------------

Goals Not Met                                          -200%(1)
-----------------------------------------------------------------------------
Goals Partially met                               Minus 50% - 14%

------------------------------------------------------------------------------
Goals Substantially Met                               15% - 20%

------------------------------------------------------------------------------
Goals All Met                                         21% - 25%
------------------------------------------------------------------------------


The  Committee   shall   determine  the  Percentage  of  the  Target  Bonus
Opportunity  which may be earned as an Actual  Bonus Award within each goal
range achieved.
==============================================================================



(1) No Bonus will be paid when goals are not met.



                                    18
<PAGE>

Maximum Bonus Award:

The  Maximum  Actual  Bonus Award paid from this Plan is 200% of the Target
Bonus Opportunity.

No Bonus Award:

No Bonus Award will be paid from the Plan if Strategic Goals are not met.

SECTION 7 - SPECIAL PARTICIPANTS AND DISCRETIONARY BONUS
--------------------------------------------------------

7.0       The  Committee  may  designate  Special   Participants  for  Plan
          participation  on terms and conditions as may be determined  from
          time to time by the  Committee.  Such  individuals  designated as
          Special  Participants  shall be  Participants  upon  agreeing  in
          writing to the terms and conditions set by the Committee for such
          participation.

7.1       The  Committee  may  pay  a  discretionary   bonus  to  any  such
          individuals  or group of individuals on such terms and conditions
          as the Committee may determine.

SECTION 8 - COMPENSATION NATURE OF THE TARGET BONUS OPPORTUNITY
---------------------------------------------------------------
AND ACTUAL BONUS AWARD
----------------------

The Target Bonus  Opportunity  granted to a Participant at the beginning of
the Plan Year as incentive  compensation  and payable to the Participant at
the end of the Plan Year in the amount of the Actual  Bonus Award earned is
a binding compensation obligation of the Corporation to the Participant for
the Plan Year in which the Actual Bonus Award is earned.

                                    19

<PAGE>


SECTION 9 - METHOD OF PAYMENT OF ACTUAL BONUS AWARD AND TAX
-----------------------------------------------------------
WITHHOLDING
-----------

The amount of the Actual Bonus Award earned by a Participant  shall be paid
by the  Corporation  to the  Participant  in cash  within  sixty  (60) days
subsequent to the end of the Plan Year. The Corporation  shall withhold all
applicable federal, state and local income taxes and other amounts required
by law to be withheld for compensation.

SECTION 10 - TERMINATION OF EMPLOYMENT, CROSS-TRANSFER,
-------------------------------------------------------
PROMOTION AND DEMOTION
----------------------

10.1      In  the  event  a  Participant   terminates   employment   either
          voluntarily or involuntarily including retirement under the terms
          of the  Corporation's  retirement  program,  death  or  permanent
          disability  prior to January 1 of the Plan Year, the  Participant
          shall receive no Actual Bonus Award.

10.2      In  the  event  a  Participant   terminates   employment   either
          voluntarily  or  involuntarily   (other  than  for  Cause  as  to
          hereinafter  defined)  including by retirement under the terms of
          the  Corporation's   retirement   program,   death  or  permanent
          disability,  subsequent  to  January  1 of  the  Plan  Year,  the
          Participant  shall be eligible to receive a pro rata Actual Bonus
          Award based on the number of months  completed  in the Plan Year.
          Such pro rata  payment,  if any,  shall be made in the manner set
          forth in Section 9. A participant  who is  terminated  during the
          Plan Year for Cause shall receive no Actual Bonus Award.

10.3      For the  purposes  of  this  Plan,  (i) a  Participant  shall  be
          considered permanently disabled on the date that such Participant
          qualifies   for  long-  term   disability   payments   under  the
          Corporation's  long-term  disability  program,  and (ii)  "Cause"
          means (a) a material  breach by the Participant of 

                                    20

<PAGE>

          his job duties and  obligations  (other  than as the result of an
          incapacity   due  to  physical  or  mental   illness)   which  is
          demonstrably  willful and deliberate on the  Participant's  part,
          which is committed in bad faith or without reasonable belief that
          such breach is in the best interests of the Corporation and which
          is not remedied in a reasonable  period of time after  receipt of
          notice  from  the  Corporation  or  (b)  the  conviction  of  the
          Participant of a felony involving moral turpitude.

10.4      In  the  event  a  Participant   is   cross-transferred   to  the
          Corporation,  to another  Division or to another  Operating  Unit
          ("Location")  at the same  Salary  Grade,  the  Participant  will
          continue  participating  in the Plan,  but the Actual Bonus Award
          will be pro rated on the time and performance results achieved at
          each Location.  The Participant will become an active Participant
          in the  corresponding  Plan for the Corporation,  Division or the
          Operating  Unit to which the  Participant  is  transferred at the
          beginning  of the next Plan if  selected  by the  Committee  as a
          Participant.

10.5      In the event a Participant is promoted to a new Salary Grade, the
          Participant's  participation  in the Plan will continue until the
          end of the Plan Year and will be  eligible  to  receive an Actual
          Bonus Award as provided by the terms of the Plan. The Participant
          will become an active  Participant at the new Salary Grade in the
          corresponding  Plan for the  Corporation,  Division or  Operating
          Unit to which the Participant is promoted at the beginning of the
          next Plan Year if selected by the Committee.

10.6      In  the  event  of  a  demotion  to  a  lower  Salary  Grade  the
          Participant  will continue  participating  in such Plan until the
          end of the  Plan  Year  and  receive  an  Actual  Bonus  Award as
          provided by the terms of the Plan. The Participant will become an
          active Participant in such Plan in effect at the new Salary Grade
          for the  Corporation,  Division or Operating  Unit as a result of
          such

                                    21
<PAGE>

          demotion  at the  beginning  of the next Plan Year if selected by
          the Committee as a Participant.

SECTION 11 - CHANGE OF CONTROL
------------------------------

In the event of a Change of Control of the Company as  hereinafter  defined
below in this Section 11, not withstanding any other provision of this Plan
to the  contrary  the  greater of either the Target  Bonus  Award or Actual
Bonus Award, for the Plan in which a Participant participates, shall become
irrevocably  due and payable to  Participants on the date of such Change of
Control.  Payment shall be made to Participants  not later than thirty days
after the date of such  change in control  otherwise  made  pursuant to the
terms  of a  Change  of  Control  Agreement  between  the  Company  and the
Participant.  In the event  there is a conflict  between  this Plan and the
terms and conditions of a  participant's  Change in Control  Agreement with
the Corporation, as the case may be, the terms and conditions of the Change
of Control  Agreement  shall govern to the extent there is a conflict  with
the terms of the Plan.

For the purposes of this  agreement,  a "Change of Control" shall mean: (a)
The acquisition by any  individual,  entity or group (within the meaning of
Section  13(d)(3) or 14(d)(2) of the  Securities  Exchange Act of 1934,  as
amended (the "Exchange Act") (a "Person") of beneficial  ownership  (within
the meaning of Rule 13d-3  promulgated  under the  Exchange  Act) of 15% or
more of either  (i) the then  outstanding  shares  of  Common  Stock of the
Company  (the  "Outstanding  Company  Common  Stock") or (ii) the  combined
voting  power of the then  outstanding  voting  securities  of the  Company
entitled to vote generally in the election of directors  (the  "Outstanding
Company  Voting  Securities"):   provided,   however,  that  the  following
acquisitions shall not constitute a Change of Control:  (i) any acquisition
directly  from the  Company  (excluding  an  acquisition  by  virtue of the
exercise of a conversion  privilege),  (ii) any acquisition by the Company,
(iii) any  acquisition  by any  employee  benefit  plan (or related  trust)
sponsored or maintained by the Company or any corporation controlled by the

                                    22

<PAGE>

Company  or  (iv)  any   acquisition   by  a  corporation   pursuant  to  a
reorganization, merger or consolidation, if, following such reorganization,
merger or consolidation,  the conditions described in clauses (i), (ii) and
(iii) of subsection (c) of this Section 11 are satisfied; or

     (b) Individuals who, as of the date hereof,  constitute the Board (the
"Incumbent  Board")  cease for any reason to constitute at least a majority
of the Board;  provided,  however,  that any individual becoming a director
subsequent to the date hereof whose election, or nomination for election by
the Company's  stockholders,  was approved by a vote of at least a majority
of the directors then comprising the Incumbent Board shall be considered as
though such individual were a member of the Incumbent Board, but excluding,
for this purpose,  any such individual  whose initial  assumption of office
occurs as a result of either an actual or threatened  election  contest (as
such terms are used in Rule 14a-11 of Regulation 14A promulgated  under the
Exchange  Act) or other  actual or  threatened  solicitation  of proxies or
consents by or on behalf of a person other than the Board; or

     (c) Approval by the  stockholders of the Company of a  reorganization,
merger,  consolidation in each case, unless, following such reorganization,
merger  or  consolidation,  (i) more  than 60% of,  respectively,  the then
outstanding  shares of Common Stock of the corporation  resulting from such
reorganization,  merger or  consolidation  and the combined voting power of
the then outstanding voting securities of such corporation entitled to vote
generally in the election of directors is then beneficially owned, directly
or indirectly,  by all or substantially all of the individuals and entities
who were the beneficial owners,  respectively,  of the Outstanding  Company
Common Stock and Outstanding Company Voting Securities immediately prior to
such  reorganization,  merger or consolidation  in  substantially  the same
proportions as their ownership,  immediately prior to such  reorganization,
merger  or  consolidation,  or the  Outstanding  Company  Common  Stock and
Outstanding  Company Voting Securities,  as the case may be, (ii) no person
(excluding the Company,  an employee benefit plan (or


                                  23

<PAGE>

related  trust) of the  Company  or such  corporation  resulting  from such
reorganization, merger or consolidation and any person beneficially owning,
immediately prior to such reorganization, merger or consolidation, directly
or  indirectly,  15% or more of the  Outstanding  Company  Common  Stock or
Outstanding  Company Voting  Securities,  as the case may be,  beneficially
owns,  directly  or  indirectly,  15% or more  of,  respectively,  the then
outstanding  shares of Common Stock of the corporation  resulting from such
reorganization, merger or consolidation or the combined voting power of the
then outstanding  voting securities of such  corporation,  entitled to vote
generally in the election of directors and (iii) at least a majority of the
members of the board of directors of the  corporation  resulting  from such
reorganization, merger or consolidation were members of the Incumbent Board
at the time of the  execution of the initial  agreement  providing for such
reorganization, merger or consolidation; or

     (d)  Approval  by the  stockholders  of the  Company of (i) a complete
liquidation  or  dissolution  of the  Company  or (ii)  the  sale or  other
disposition of all or substantially all of the assets of the Company, other
than to a corporation,  with respect to which  following such sale or other
disposition,  (A) more  than  60% of,  respectively,  the then  outstanding
shares of Common Stock of such corporation and the combined voting power of
the then outstanding voting securities of such corporation entitled to vote
generally  in  the  election  of  directors  is  then  beneficially  owned,
directly, or indirectly, by all or substantially all of the individuals and
entities who were the beneficial owners,  respectively,  of the Outstanding
Company Common Stock and Outstanding Company Voting Securities  immediately
prior  to  such  sale  or  other  disposition  in  substantially  the  same
proportion  as their  ownership,  immediately  prior to such  sale or other
disposition,  of the  Outstanding  Company  Common  Stock  and  Outstanding
Company Voting  Securities,  as the case may be, (13) no person  (excluding
the Company and any employee benefit plan (related trust) of the Company or
such corporation and any person beneficially  owning,  immediately prior to
such sale or other disposition,  directly or indirectly, 15% or more of the
Outstanding

                                    24

<PAGE>

Company Common Stock or Outstanding Company Voting Securities,  as the case
may  be,  beneficially  owns,  directly  or  indirectly,  15% or  more  of,
respectively  the  then   outstanding   shares  of  Common  Stock  of  such
corporation  and the combined voting power of the then  outstanding  voting
securities of such  corporation  entitled to vote generally in the election
of  directors  and (C) a least a  majority  of the  members of the board of
directors of such  corporation  were members of the Incumbent  Board at the
time of the  execution  of the  initial  agreement  or  action of the Board
providing for such sale or disposition of assets of the Company.

SECTION 12 - ADMINISTRATION AND MODIFICATION OF THE PLAN
--------------------------------------------------------

12.1      The Plan shall be  administered  by the Committee.  The Committee
          shall have plenary  authority,  subject to the express provisions
          hereof,  to resolve  any  questions  arising  under the Plan;  to
          correct  any  defect or  supply  an  omission  or  reconcile  any
          inconsistency;  to  establish  amend  and  rescind  any rules and
          regulations   relating   to  the  Plan  and  to  make  all  other
          determinations  necessary or advisable for the administration and
          continued  successful  operation of the Plan.  The Committee will
          have  discretion at any time, or from time to time, to accelerate
          the time at which and the extent to which the Actual  Bonus Award
          may be payable to Participants.  Any decision of the Committee in
          the  administration  of the Plan, as described  herein,  shall be
          final and conclusive.  The Committee shall act only by a majority
          of its members  then in office and its actions  shall be recorded
          in minutes of the Committee meetings which shall be conclusive of
          all such actions taken.

12.2      The  Committee  shall  have the  right but not an  obligation  to
          modify the Plan and to adjust Performance Goals including but not
          limited to Earnings Per Share to reflect non-recurring  financial
          changes  or  changes  in  business   structure  or   organization
          including by way of illustration and not as a limitation  changes
          in accounting methods or requirements; accounting adjustments not
          in the  usual  and  ordinary  course  of  business  resulting  in

                                    25

<PAGE>

          non-recurring charges or additions in income, assets, liabilities
          or stockholders  equity; tax rates and Corporate  reorganizations
          including: recapitalization,  mergers, acquisitions, divestitures
          and spin-offs.

12.3      Unless  otherwise  amended by  resolution of the  Committee,  the
          Chairman  shall have the power to act on behalf of the  Committee
          with respect to  individuals  Salary Grade 3 and below under this
          Plan to: (i) select  Participants and designate such Participants
          as Group A, Group B and Group C Participants; (ii) set the Salary
          Grade and Base Annual Salary for each such Participant; (iii) set
          the Performance  Goals;  (iv) Adjust Target Bonus  Opportunities;
          and (v) Assess Strategic Goals achievement.

SECTION 13 - AMENDMENT OR TERMINATION OF PLAN AND DURATION OF
-------------------------------------------------------------
PLAN
----

13.1      Subject  to  the  provisions  of  subsection   13.2  below,   the
          Compensation  Committee  shall  have the right at any time,  from
          time  to  time,   without  notice  to  Participants  to  suspend,
          discontinue or amend this Plan in any respect whatsoever,  except
          that  administration  of the  Plan  cannot  be  removed  from the
          Compensation Committee.

13.2      Upon termination or discontinuance of the Plan, such Participants
          shall receive a pro rata amount of the Actual Bonus Award for the
          Plan Year  based on the  number of months  completed  in the Plan
          Year as of the date of the  termination.  Payment of such  amount
          shall be in the manner provided in the Plan.

13.3      This Plan is an annual  Plan and there is no  obligation  for the
          Committee  or the Board of Directors to renew such Plan each Plan
          Year.

                                    26
<PAGE>


SECTION 14 - PLAN NOT A CONTRACT OF EMPLOYMENT
----------------------------------------------

Neither  this Plan,  nor  participation  in it,  shall be  construed in any
manner as a contract of employment either expressed or implied.  Nothing in
the  Plan  shall  interfere  with or  limit  in any way  the  right  of the
Corporation  to terminate  any  Participant's  employment  at any time,  or
confer  upon any  Participant  any right to  continue  in the employ of the
Corporation for any period of time or to continue a  Participant's  present
or any other rate of  compensation.  No  employee  shall have a right to be
selected as a Participant, or having been so selected, to be selected again
as a Participant.

SECTION 15 - NON-ASSIGNABILITY OF RIGHTS
----------------------------------------

No Participant's interest in the Plan shall be sold, assigned, transferred,
hypothecated,  pledged,  or otherwise disposed of by a Participant prior to
the actual  receipt of such payment  except by Will,  the law of decent and
distribution  or a  qualified  domestic  relations  order as defined by the
Employee  Retirement  Income Security Act of 1974.  Participants  may name,
from  time  to  time,  beneficiaries  (who  may be  named  contingently  or
successively)  to whom benefits the Plan will be paid in the event of their
death before they receive any or all such benefit.  Each  designation  will
revoke all prior designations by the same Participant, shall be in the form
prescribed by the  Committee,  and will be effective only when filed by the
Participant with the Committee during the  Participant's  life time. In the
absence  of  any  such  designation,   benefits  remaining  unpaid  at  the
Participant's  death shall be paid to the Participant's  estate.  Except as
otherwise  permitted  by action taken by the  Committee,  the rights of any
Participant under the Plan will immediately  terminate if such Participant:
(i) attempts to, or does sell or assign, transfer,  hypothecate,  pledge or
otherwise  dispose  of any right  hereunder  prior to the right to  receive
payment except as permitted above or (i) becomes insolvent or bankrupt,  or
becomes  involved in any matter which in the opinion of the Committee might
result in a Participant's  rights under the Plan being taken to satisfy the
Participant's debts or liabilities.

                                    27
<PAGE>


IN WITNESS  WHEREOF,  the Board of  Directors  has  caused  this Plan to be
signed by its duly appointed officers and its corporate seal to be hereunto
affixed as of this 16th day of June 1997.

    /s/ James R. Wilson 
By:______________________________
   Chairman of the Board, President
   and Chief Executive Officer

ATTESTED:                                                        --Seal--


     /s/ Edwin M. North
By:________________________________
    Corporate Secretary


                                    28


<PAGE>



==============================================================================

                            THIOKOL CORPORATION
                          KEY EXECUTIVE BONUS PLAN

                                 EXHIBIT A

                         LINEAR INTERPOLATION CHART
                            GROUP A PARTICIPANTS
                             EARNINGS PER SHARE
                              PERFORMANCE GOAL

==============================================================================


ACTUAL EPS ACHIEVED MEASURED            PERCENTAGE OF TARGET BONUS
AGAINST EPS GOAL                        OPPORTUNITY WHICH MAY BE EARNED
                                        AS AN ACTUAL BONUS AWARD
------------------------------------------------------------------------------
        90.0%                                       35.0%
------------------------------------------------------------------------------
        91.1%                                        42.2%
------------------------------------------------------------------------------
        92.0%                                        48.0%
------------------------------------------------------------------------------
        94.0%                                        61.0%
------------------------------------------------------------------------------
        95.0%                                        67.5%
------------------------------------------------------------------------------
        96.0%                                        74.0%
------------------------------------------------------------------------------
        97.0%                                        80.5%
------------------------------------------------------------------------------
        98.0%                                        87.0%
------------------------------------------------------------------------------
        99.0%                                        93.5%
------------------------------------------------------------------------------
       100.0%                                       100.0%
------------------------------------------------------------------------------
       101.0%                                       106.7%
------------------------------------------------------------------------------
       102.0%                                      113.3%
------------------------------------------------------------------------------
       103.0%                                      120.0%
------------------------------------------------------------------------------
       104.0%                                      126.7%
------------------------------------------------------------------------------
       105.0%                                      133.3%
------------------------------------------------------------------------------
       106.0%                                      140.0%
------------------------------------------------------------------------------
       107.0%                                      146.7%
------------------------------------------------------------------------------
       108.0%                                      153.4%
------------------------------------------------------------------------------
       109.0%                                      160.0%
------------------------------------------------------------------------------
       110.0%                                      166.7%
------------------------------------------------------------------------------
       111.0%                                      173.4%
------------------------------------------------------------------------------
       112.0%                                      180.0%
------------------------------------------------------------------------------
       113.0%                                      186.7%
------------------------------------------------------------------------------
       114.0%                                      193.4%
------------------------------------------------------------------------------
       115.0%                                      200.0%
==============================================================================

                                    29

<PAGE>

                            THIOKOL CORPORATION
                          KEY EXECUTIVE BONUS PLAN

                                EXHIBIT A-1

                         LINEAR INTERPOLATION CHART
                            GROUP B PARTICIPANTS
                             EARNINGS PER SHARE
                              PERFORMANCE GOAL

==============================================================================

ACTUAL EPS ACHIEVED MEASURED                 PERCENTAGE OF TARGET BONUS      
AGAINST EPS GOAL                             OPPORTUNITY WHICH MAY BE
                                             EARNED AS AN ACTUAL BONUS AWARD
==============================================================================
         90.0%                                           10.0%
------------------------------------------------------------------------------
         91.0%                                           11.5%
------------------------------------------------------------------------------
         92.0%                                           13.0%
------------------------------------------------------------------------------
         93.0%                                           14.5%
------------------------------------------------------------------------------
         94.0%                                           16.0%
------------------------------------------------------------------------------
         95.0%                                           17.5%
------------------------------------------------------------------------------
         96.0%                                           19.0%
------------------------------------------------------------------------------
         97.0%                                           20.5%
------------------------------------------------------------------------------
         98.0%                                           22.0%
------------------------------------------------------------------------------
         99.0%                                           23.5%
------------------------------------------------------------------------------
        100.0%                                           25.0%
------------------------------------------------------------------------------
        101.0%                                           26.7%
------------------------------------------------------------------------------
        102.0%                                           28.3%
------------------------------------------------------------------------------
        103.0%                                           30.0%
------------------------------------------------------------------------------
        104.0%                                           31.7%
------------------------------------------------------------------------------
        105.0%                                           33.3%
------------------------------------------------------------------------------
        106.0%                                           35.0%
------------------------------------------------------------------------------
        107.0%                                           36.7%
------------------------------------------------------------------------------
        108.0%                                           38.3%
------------------------------------------------------------------------------
        109.0%                                           40.0%
------------------------------------------------------------------------------
        110.0%                                           41.7%
------------------------------------------------------------------------------
        111.0%                                           43.3%
------------------------------------------------------------------------------
        112.0%                                           45.0%
------------------------------------------------------------------------------
        113.0%                                           46.7%
------------------------------------------------------------------------------
        114.0%                                           48.3%
------------------------------------------------------------------------------
        115.0%                                           50.0%
==============================================================================

                                    30
<PAGE>



==============================================================================
                            THIOKOL CORPORATION
                          KEY EXECUTIVE BONUS PLAN

                                EXHIBIT A-2

                         LINEAR INTERPOLATION CHART
                            GROUP B PARTICIPANTS
                         OPERATING UNIT NET PROFIT
                              PERFORMANCE GOAL
==============================================================================

ACTUAL OPERATING UNIT NET PROFIT             PERCENTAGE OF TARGET BONUS
ACHIEVING MEASURED AGAINST                   OPPORTUNITY WHICH MAY BE
OPERATING UNIT NET PROFIT GOAL               EARNED AS AN ACTUAL BONUS AWARD
------------------------------------------------------------------------------
         90.0%                                             25.0%
------------------------------------------------------------------------------
         91.0%                                             30.0%
------------------------------------------------------------------------------
         92.0%                                             35.0%
------------------------------------------------------------------------------
         93.0%                                             40.0%
------------------------------------------------------------------------------
         94.0%                                             45.0%
------------------------------------------------------------------------------
         95.0%                                             50.0%
------------------------------------------------------------------------------
         96.0%                                             55.0%
------------------------------------------------------------------------------
         97.0%                                             60.0%
------------------------------------------------------------------------------
         98.0%                                             65.0%
------------------------------------------------------------------------------
         99.0%                                             70.0%
------------------------------------------------------------------------------
        100.0%                                             75.0%
------------------------------------------------------------------------------
        101.0%                                             80.0%
------------------------------------------------------------------------------
        102.0%                                             85.0%
------------------------------------------------------------------------------
        103.0%                                             90.0%
------------------------------------------------------------------------------
        104.0%                                             95.0%
------------------------------------------------------------------------------
        105.0%                                            100.0%
------------------------------------------------------------------------------
        106.0%                                            105.0%
------------------------------------------------------------------------------
        107.0%                                            110.0%
------------------------------------------------------------------------------
        108.0%                                            115.0%
------------------------------------------------------------------------------
        109.0%                                            120.0%
------------------------------------------------------------------------------
        110.0%                                            125.0%
------------------------------------------------------------------------------
        111.0%                                            130.0%
------------------------------------------------------------------------------
        112.0%                                            135.0%
------------------------------------------------------------------------------
        113.0%                                            140.0%
------------------------------------------------------------------------------
        114.0%                                            145.0%
------------------------------------------------------------------------------
        115.0%                                            150.0%
==============================================================================


                                    31
<PAGE>



==============================================================================
                            THIOKOL CORPORATION
                          KEY EXECUTIVE BONUS PLAN

                                EXHIBIT A-3

                         LINEAR INTERPOLATION CHART
                            GROUP C PARTICIPANTS
                         OPERATING UNIT NET PROFIT
                              PERFORMANCE GOAL

==============================================================================
ACTUAL OPERATING UNIT NET PROFIT             PERCENTAGE OF TARGET BONUS
ACHIEVED MEASURED AGAINST OPERATING          OPPORTUNITY WHICH MAY BE
UNIT NET GOAL                                EARNED AS AN ACTUAL BONUS AWARD
------------------------------------------------------------------------------
        90.0%                                            10.0%
------------------------------------------------------------------------------
        91.0%                                            11.5%
------------------------------------------------------------------------------
        92.0%                                            13.0%
------------------------------------------------------------------------------
        93.0%                                            14.5%
------------------------------------------------------------------------------
        94.0%                                            16.0%
------------------------------------------------------------------------------
        95.0%                                            17.5%
------------------------------------------------------------------------------
        96.0%                                            19.0%
------------------------------------------------------------------------------
        97.0%                                            20.5%
------------------------------------------------------------------------------
        98.0%                                            22.0%
------------------------------------------------------------------------------
        99.0%                                            23.5%
------------------------------------------------------------------------------
       100.0%                                            25.0%
------------------------------------------------------------------------------
       101.0%                                            26.7%
------------------------------------------------------------------------------
       102.0%                                            28.3%
------------------------------------------------------------------------------
       103.0%                                            30.0%
------------------------------------------------------------------------------
       104.0%                                            31.7%
------------------------------------------------------------------------------
       105.0%                                            33.3%
------------------------------------------------------------------------------
       106.0%                                            35.0%
------------------------------------------------------------------------------
       107.0%                                            36.7%
------------------------------------------------------------------------------
       108.0%                                            38.3%
------------------------------------------------------------------------------
       109.0%                                            40.0%
------------------------------------------------------------------------------
       110.0%                                            41.7%
------------------------------------------------------------------------------
       111.0%                                            43.3%
------------------------------------------------------------------------------
       112.0%                                            45.0%
------------------------------------------------------------------------------
       113.0%                                            46.7%
------------------------------------------------------------------------------
       114.0%                                            48.3%
------------------------------------------------------------------------------
       115.0%                                            50.0%
==============================================================================

                                    32
<PAGE>



==============================================================================
                            THIOKOL CORPORATION
                          KEY EXECUTIVE BONUS PLAN

                                EXHIBIT A-4

                         LINEAR INTERPOLATION CHART
                            GROUP C PARTICIPANTS
                            DIVISION NET PROFIT
                              PERFORMANCE GOAL
==============================================================================

ACTUAL NET PROFIT ACHIEVED                   PERCENTAGE OF TARGET BONUS
MEASURED AGAINST DIVISION NET                OPPORTUNITY WHICH MAY BE
PRE-TAX PROFIT GOALS                         EARNED AS AN ACTUAL BONUS AWARD
------------------------------------------------------------------------------
        90.0%                                              25.0%
------------------------------------------------------------------------------
        91.0%                                              30.0%
------------------------------------------------------------------------------
        92.0%                                              35.0%
------------------------------------------------------------------------------
        93.0%                                              40.0%
------------------------------------------------------------------------------
        94.0%                                              45.0%
------------------------------------------------------------------------------
        95.0%                                              50.0%
------------------------------------------------------------------------------
        96.0%                                              55.0%
------------------------------------------------------------------------------
        97.0%                                              60.0%
------------------------------------------------------------------------------
        98.0%                                              65.0%
------------------------------------------------------------------------------
        99.0%                                              70.0%
------------------------------------------------------------------------------
       100.0%                                              75.0%
------------------------------------------------------------------------------
       101.0%                                              80.0%
------------------------------------------------------------------------------
       102.0%                                              85.0%
------------------------------------------------------------------------------
       103.0%                                              90.0%
------------------------------------------------------------------------------
       104.0%                                              95.0%
------------------------------------------------------------------------------
       105.0%                                             100.0%
------------------------------------------------------------------------------
       106.0%                                             105.0%
------------------------------------------------------------------------------
       107.0%                                             110.0%
------------------------------------------------------------------------------
       108.0%                                             115.0%
------------------------------------------------------------------------------
       109.0%                                             120.0%
------------------------------------------------------------------------------
       110.0%                                             125.0%
------------------------------------------------------------------------------
       111.0%                                             130.0%
------------------------------------------------------------------------------
       112.0%                                             135.0%
------------------------------------------------------------------------------
       113.0%                                             140.0%
------------------------------------------------------------------------------
       114.0%                                             145.0%
------------------------------------------------------------------------------
       115.0%                                             150.0%
==============================================================================


                                    33