WERE GRANTED
UNDER ATK'S 2005 STOCK INCENTIVE PLAN, AS AMENDED, OR ATKS 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.
[EMPLOYEE NAME]
UNDERSTANDS HE/SHE 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 20XX THROUGH 20XX THE PRORATION IS [FRACTION] OF SHARES AND CASH.
(II)
FOR THE PERFORMANCE AWARD FOR THE ATK FISCAL
YEARS 20XX THROUGH 20SS THE PRORATION IS [FRACTION] OF SHARES AND CASH.
(III)
FOR THE PERFORMANCE AWARD FOR THE ATK FISCAL
YEARS 20XX THROUGH 20XX THE PRORATION IS [FRACTION] OF SHARES AND CASH.
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 WILL BE SUBJECT TO THE TERMS OF THE APPLICABLE PERFORMANCE AWARD AGREEMENT
AND THE RELATED PLAN.
STOCK OPTIONS.
[EMPLOYEE NAME] WILL IMMEDIATELY FORFEIT ALL UNVESTED (NOT
EXERCISABLE) STOCK OPTIONS ON THE DATE OF TERMINATION.
ALL STOCK OPTIONS THAT
ARE EXERCISABLE ON [EMPLOYEE NAME]'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
[EMPLOYEE NAME]'S TERMINATION DATE.
ALL TERMS OF THE NON-QUALIFIED STOCK OPTION
AGREEMENT(S) APPLY.
DEFERRED COMPENSATION.
ANY COMPENSATION [EMPLOYEE NAME] DEFERRED UNDER THE
ALLIANT TECHSYSTEMS INC. NONQUALIFIED DEFERRED COMPENSATION PLAN (OR PREDECESSOR
PLAN) SHALL BE PAID IN ACCORDANCE WITH HIS/HER PRE-SELECTED DISTRIBUTION OPTIONS
AND THE TERMS OF THAT PLAN.
A-2
SEVERANCE BENEFITS.
IN EXCHANGE FOR THE PROMISES OF THIS AGREEMENT, AND AFTER
THE APPLICABLE REVOCATION PERIOD HAS ENDED, ATK WILL PROVIDE [EMPLOYEE NAME]
WITH THE SEVERANCE BENEFITS CONTAINED IN THE EXECUTIVE SEVERANCE PLAN AND WITH
ANY ADDITIONAL BENEFITS IDENTIFIED IN THIS PARAGRAPH 2 (TOGETHER REFERRED TO AS
"SEVERANCE BENEFITS"), PROVIDED THAT [EMPLOYEE NAME] HAS NOT REVOKED THIS
GENERAL RELEASE DURING THE RESCISSION PERIOD OUTLINED IN PARAGRAPH 8 BELOW.
SEVERANCE PAY.
PURSUANT TO ATK'S EXECUTIVE SEVERANCE PLAN, ATK WILL PAY
[EMPLOYEE NAME] A SINGLE LUMP-SUM SEVERANCE PAYMENT IN THE AMOUNT OF $XXXXX,
WHICH IS EQUAL TO XX MONTHS BASE PAY.
THIS SEVERANCE PAYMENT WILL BE SUBJECT TO
ALL APPLICABLE WITHHOLDINGS AND WILL BE TAXABLE AS PAYROLL WAGES AT THE
SUPPLEMENTAL WAGE WITHHOLDING RATE.
NO 401(K) DEDUCTIONS WILL BE TAKEN FROM THE
PAYMENT NOR IS IT PENSIONABLE EARNINGS (FOR EXAMPLE, IT IS NOT "EARNINGS" OR
"RECOGNIZED COMPENSATION") FOR PURPOSES OF ANY ATK