THE TERMS OF THE EIP AND ATK'S
COMPENSATION SYSTEM.
THE EIP AMOUNT (IF ANY) WILL BE PAID IN A SINGLE LUMP SUM
PAYMENT IN CASH (OR DEFERRED IF THE NONQUALIFIED DEFERRED COMPENSATION PLAN
PROVIDES FOR THIS AS A PREVIOUSLY ELECTED DEFERRAL) AT THE TIME ALL OTHER EIP
PARTICIPANTS RECEIVE PAYMENT OF THEIR ANNUAL CASH INCENTIVE PAYMENTS FOR SUCH
FISCAL YEAR.
(C)
RESTRICTED STOCK.
MR. CRONIN DOES NOT HAVE ANY UNVESTED AND
OUTSTANDING SHARES OF RESTRICTED STOCK.
(D)
PERFORMANCE SHARES AND CASH INCENTIVE PAYMENTS.
MR. CRONIN HAS
FOUR PERFORMANCE AWARDS AS SPECIFICALLY STATED BELOW.
THESE AWARDS WERE GRANTED
UNDER ATK'S 2005 STOCK INCENTIVE PLAN, AS AMENDED, OR ATK'S EXECUTIVE OFFICER
INCENTIVE PLAN AND THE AWARDS ARE SUBJECT TO THE TERMS OF THE APPLICABLE PLAN,
AWARD AGREEMENTS AND ATK'S COMPENSATION SYSTEM.
NOTHING IN THIS AGREEMENT
CREATES ANY ADDITIONAL RIGHTS WITH RESPECT TO THESE AWARDS.
MR. CRONIN
UNDERSTANDS HE WILL REMAIN ELIGIBLE TO RECEIVE A PRORATED NUMBER OF THE
PERFORMANCE SHARES AND A PRORATED CASH INCENTIVE PAYMENT EARNED (IF ANY) BASED
ON THE AMOUNT OF ACTIVE SERVICE TIME DURING THE PERFORMANCE PERIOD.
SPECIFICALLY:
(I)
FOR THE
PERFORMANCE AWARD FOR THE ATK FISCAL YEARS 2008 THROUGH 2010, THERE WILL BE NO
PRORATION.
MR. CRONIN WILL BE ELIGIBLE TO RECEIVE 100% OF SHARES AND CASH BASED
ON THE TERMS OF THE APPLICABLE PLAN.
(II)
FOR THE
PERFORMANCE AWARD FOR THE ATK FISCAL YEARS 2009 THROUGH 2011, THE PRORATION IS
TWO-THIRDS OF SHARES AND CASH.
(III)
FOR THE PERFORMANCE
AWARD FOR THE ATK FISCAL YEARS 2010 THROUGH 2012, THE PRORATION IS ONE-THIRD OF
SHARES AND CASH.
(IV)
FOR THE RELATIVE
STOCKHOLDER RETURN PERFORMANCE AWARD AGREEMENT FOR THE ATK FISCAL YEARS 2010
THROUGH 2012 (APRIL 1, 2009 - MARCH 31, 2012), THE PRORATION IS ONE-THIRD OF
SHARES.
ATK EXPECTS TO MAKE PAYMENT OF THESE AWARDS WITHIN 2 1⁄2 MONTHS FOLLOWING THE
COMPLETION OF THE RESPECTIVE PERFORMANCE PERIODS.
THE NUMBER OF SHARES
DELIVERED AND THE AMOUNT OF ANY CASH PAYOUT DEPENDS ON WHETHER AND TO WHAT
EXTENT (IF ANY) ATK MEETS THE OBJECTIVES SET FORTH PURSUANT TO THE RESPECTIVE
PERFORMANCE AWARDS AND TERMS OF THE APPLICABLE PLAN.
ALL PAYMENTS WILL BE TAXED
IN ACCORDANCE WITH THE FEDERAL AND STATE TAX LAWS THAT APPLY AND ATK PRACTICE
AND
2
WILL BE SUBJECT TO THE TERMS OF THE APPLICABLE PERFORMANCE AWARD AGREEMENT AND
THE RELATED PLAN.
(E)
STOCK OPTIONS.
ALL OF MR. CRONIN'S STOCK OPTIONS ARE VESTED.
ALL
STOCK OPTIONS THAT ARE EXERCISABLE ON MR. CRONIN'S DATE OF TERMINATION REMAIN
EXERCISABLE UNTIL THE EARLIER OF (I) THE OPTION'S EXPIRATION DATE UNDER THE
NON-QUALIFIED STOCK OPTION AGREEMENT FROM WHICH IT WAS GRANTED, OR (II) THREE
YEARS FROM MR. CRONIN'S TERMINATION DATE.
ALL TERMS OF THE NON-QUALIFIED STOCK
OPTION AGREEMENT(S) APPLY.
(F)
DEFERRED COMPENSATION.
ANY COMPENSATION MR. CRONIN DEFERRED
UNDER THE ALLIANT TECHSYSTEMS INC. NONQUALIFIED DEFERRED COMPENSATION PLAN (OR
PREDECESSOR PLAN) SHALL BE PAID IN ACCORDANCE WITH HIS PRE-SELECTED DISTRIBUTION
OPTIONS AND THE TERMS OF THAT PLAN.
(G)
SERP.
MR. CRONIN'S SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN
("SERP") BENEFIT WILL BE PAID PURSUANT