Document:

Exhibit
10.1

 

AMENDED EXECUTIVE EMPLOYMENT AGREEMENT

 

AMENDED EXECUTIVE EMPLOYMENT
AGREEMENT, effective July 1, 2007, by and between SPORT-HALEY, INC., a Colorado
corporation (the “Company”) and CATHERINE B. BLAIR (the “Executive”).

 

WHEREAS, the Company has,
prior to the date of this Agreement, employed the Executive as the Company’s
Vice President of Merchandising and Design, pursuant to that Amended Executive
Employment Agreement effective June 1, 2005; and

 

WHEREAS, the Company desires
to continue to employ the Executive on a full-time basis, and the Executive
desires to be so employed by the Company, pursuant to the terms of this Amended
Executive Employment Agreement;

 

NOW, THEREFORE, in
consideration of the mutual covenants contained herein, the parties agree as
follows:

 

ARTICLE I

 

EMPLOYMENT DUTIES AND BENEFITS

 

Section
1.1  Employment. The Company hereby employs
the Executive in the position described on Schedule 1 hereto as an executive
officer of the Company pursuant to the terms of this Amended Executive
Employment Agreement, which Agreement shall supersede and replace the Amended
Executive Employment Agreement effective June 1, 2005 in its entirety. The
Executive accepts such employment and agrees to perform the duties and
responsibilities assigned to her pursuant to this Agreement.

 

Section
1.2  Duties and Responsibilities. The
Executive shall hold the position with the Company which is specified on
Schedule 1, which is attached hereto and incorporated herein by reference. The
Executive is employed pursuant to the terms of this Agreement and agrees to
devote full-time to the business of the Company. The Executive shall perform
the duties set forth on Schedule 1 while employed as an executive officer, and
such further duties as may be determined and assigned to her from time-to-time
by the Chief Executive Officer or the Board of Directors of the Company.

 

Section
1.3  Working Facilities. The Executive
shall be furnished with facilities and services suitable to the position and
adequate for the performance of the Executive’s duties under this Agreement. The
Executive’s duties shall be rendered at the Company’s offices, or at such other
place or places as the Executive may designate with the Company’s approval,
which shall not be unreasonably withheld.

 

Section
1.4  Vacations. The Executive shall be
entitled each year to a reasonable vacation of not less than four weeks in
accordance with the established practices of the Company now or 

 

 

hereafter in effect for executive personnel,
during which time the Executive’s compensation shall be paid in full. Should
the Company from time-to-time require the Executive to perform job duties
during vacation periods, the Executive shall be entitled to compensatory
vacation time at a mutually agreeable time.

 

Section
1.5  Expenses. The Executive is authorized
to incur reasonable expenses for promoting the domestic and international
business of the Company in all respects, including expenses for entertainment,
travel and similar items. The Company will reimburse the Executive for all such
expenses that are reasonably related to the Company’s business and primarily
for the Company’s benefit, upon the presentation by the Executive, from
time-to-time, of an itemized account of such expenditures. Such expenses shall
be reviewed and approved by the Company’s Chief Financial Officer.

 

Section
1.6  Benefit Plans. From the effective date
of this Agreement, the Executive shall be entitled to participate in all
existing benefit plans provided to the Company’s executive employees including,
to the extent now or hereafter in effect, medical, health, dental, vision,
disability, life insurance and death benefit plans, in accordance with the
terms of such plans.

 

ARTICLE II

 

COMPENSATION

 

Section
2.1  Base Salary. The Company shall pay to
the Executive a base salary of not less than the amount specified on Schedule
1, subject to annual review and raises in such base salary. The base salary may
be raised by action of the Board of Directors, and such raises shall thereafter
be included in the Executive’s base salary as defined for purposes of this
Agreement and the Company’s bonus plan.

 

Section
2.2  Bonus and Bonus Plan Participation. The
Executive shall be entitled to receive a bonus at such time or times as may be
determined by the Compensation Committee of the Board of Directors of the
Company. The Executive shall also be entitled to receive bonuses of up to 30%
of the Executive’s base salary in accordance with the provisions of the
Company-wide bonus plan as in effect from time to time.

 

ARTICLE III

 

TERM OF EMPLOYMENT AND TERMINATION

 

Section
3.1  Term. This Agreement shall be for a
term which is specified on Schedule 1, commencing on its effective date,
subject, however, to termination during such period as provided in this Article.
Provided that the Executive is in compliance with all of her obligations
hereunder, the term of the Executive’s employment shall be extended
automatically for one additional year at the end of each year of the term, or
extended term, of this Agreement on the same terms and conditions as contained
in this Agreement, unless either the Company or the Executive shall, at least
90 days 

 

 

prior to the expiration of the initial term
or of any renewal term, give written notice of the intention not to renew this Agreement.
If the Company gives such written notice of non-renewal, the provisions of
Section 3.3 shall apply; if the Executive gives such written notice of
non-renewal, the provisions of Section 3.5 shall apply. Automatic renewals
shall be effective in subsequent years on the same day of the same month as the
original effective day and month of this Agreement.

 

Section
3.2  Termination by the Company with Cause.
The Company may terminate the Executive, at any time, upon ten days’ written
notice and opportunity for the Executive to remedy any non-compliance with the
terms of this Agreement (if such non-compliance is capable of being remedied;
if not, the Company’s notice of termination shall be effective immediately),
for Cause. In such event, the Board of Directors shall provide in writing to
the Executive an opinion of the Board of Directors, signed by each member
voting in favor of termination of the Executive, which shall specify with
particularity the basis for such termination. Upon the date of termination of
this Agreement pursuant to this Section 3.2, the Company’s obligation to pay
any compensation shall terminate, at which time the Company shall be
responsible for compensating the Executive for any vacation time not taken. Subject
to this exception and the obligation of the Company to compensate the Executive
through the notice period, no other compensation shall be payable to the
Executive should this Agreement be terminated pursuant to this Section 3.2.

 

As used herein, the term “Cause”
shall be limited to any of the following from and after the date hereof: (i)
any willful breach of any material written policy of the Company that results
in material and demonstrable liability or loss to the Company; (ii) the
engaging by Executive in conduct involving moral turpitude that causes material
and demonstrable injury, monetarily or otherwise, to the Company, including,
but not limited to, misappropriation or conversion of assets of the Company
(other than immaterial assets); (iii) conviction of or entry of a plea of nolo
contendere to a felony, which is not appealed and subsequently reversed or
vacated; or (iv) a material breach of this Agreement by engaging in action in
violation of the restrictive covenants in this Agreement. No act or failure to
act by the Executive shall be deemed “willful” if done, or omitted to be done,
by her in good faith and with the reasonable belief that her action or omission
was in the best interests of the Company.

 

Section
3.3  Termination by the Company without Cause.
The Company may terminate the Executive’s services without cause at any time
upon 90 days’ written notice. In such event, in addition to compensating the
Executive during such 90-day notice period, the Company shall be obligated to
compensate the Executive with severance pay equal to twelve additional months’
compensation as of the date of such termination. Accordingly, in the event the
Company terminates this Agreement without cause or chooses not to renew this
Agreement upon its expiration, the 

 

3

 

Executive shall receive an aggregate of
fifteen months’ salary from and after the date of the Executive’s receipt of a
notice of termination through and including the date of termination. In
addition to the foregoing, the Executive shall receive a bonus which shall be
equivalent to 50% of the bonus last received by the Executive, if any, during
the twelve months prior to termination.

 

Section
3.4  Termination by the Executive with Cause.
The Executive may terminate her employment with the Company at any time, upon
30 days’ written notice and opportunity for the Company to remedy any
non-compliance, by reason of (i) the Company’s material failure to perform its
duties pursuant to this Agreement, or (ii) any material diminishment in the
duties and responsibilities, working facilities, or benefits as described in
Article I of this Agreement; provided that the Executive must so notify the
Company of the applicable condition within 90 days of the initial existence of
such condition. The Executive shall not be entitled to the severance
compensation and other benefits described in Section 3.7 below in the event of
termination of this Agreement pursuant to this Section 3.4, except as otherwise
provided in Section 3.7(a), but shall be entitled to severance pay equal to
twelve months’ compensation and benefits from the effective date of
termination, upon a determination that the Company has failed to perform its
duties pursuant to this Agreement and that such failure is material or a
determination that the duties and responsibilities, working facilities, or
benefits as described herein have been materially diminished. Such
determination shall be made by the Board of Directors in their best good faith.

 

Section
3.5  Termination by the Executive Without Cause.
The Executive, without cause, may terminate this Agreement upon 90 days’
written notice to the Company. In such event, the Executive shall not be
required to render the services required under this Agreement following such
90-day period. Compensation for vacation time not taken by the Executive shall
be paid to the Executive at the date of termination. The Executive shall not be
entitled to the severance compensation and other benefits described in Section
3.7 below in the event of termination of this Agreement pursuant to this
Section 3.5, except as described in Section 3.7(a), but shall be entitled to
the compensation provided in Section 3.3.

 

Section
3.6  Termination upon Death of the Executive.
In addition to any other provision relating to termination, this Agreement
shall terminate upon the Executive’s death. In such event, all unpaid
compensation and bonuses due to the Executive as of the date of death (but not
for the remainder of the term or extended term), compensation for earned, but
not used, vacation time not taken by the Executive and all expense
reimbursements due to the Executive shall be paid to the Executive’s estate.

 

4

 

Section
3.7  Severance Compensation and Continuation of
Benefits.

 

(a)        Notwithstanding any other provisions
hereof, in the event of a non-negotiated change in control of the Company and
either the Executive or the Company terminates this Agreement within 60 days of
such non-negotiated change in control, the Executive shall receive severance
compensation, payable in a lump sum within 30 days of such termination, equal
to two times her annual salary and incentive or bonus payments, if any, as
shall have been paid to the Executive during the most recent 12-month period
concluded prior to the date of her termination.

 

(b)        The term 
“change of control” is defined for purposes of this Agreement as a (i)
change in the ownership of the Company (as defined in Section 1.409A-3(i)(5)(v)
of the federal tax regulations); (ii) change in the effective control of the
Company (as defined in Section 1.409A-3(i)(5)(vi) of the federal tax
regulations); or (iii) change in the ownership of a substantial portion of the
Company’s assets (as defined in Section 1.409A-3(i)(5)(vii) of the federal tax
regulations). Notwithstanding any provisions to the contrary herein, a change
of control shall not mean any transaction or series of transactions wherein the
Company repurchases its own securities or a “going private” transaction by the
Company or its affiliates, within the meaning of Rule 13e-3 promulgated under
the Securities Exchange Act of 1934, as amended (the “Exchange Act”).

 

The term “non-negotiated
change of control,” shall mean a change of control, as defined above, which is
not negotiated or approved by at least two thirds of the board of directors of
the Company prior to the change of control event.

 

(c)        In the event the Executive is required
to hire counsel to negotiate on her behalf in connection with her termination
or a change in control of the Company, or in order to enforce the rights and
obligations as provided herein, the Company shall reimburse to the Executive
all reasonable attorneys’ fees which may be expended by the Executive in
seeking to enforce the terms hereof. Such reimbursement shall be paid by the
Company every 30 days after the Executive provides to the Company copies of
invoices from the Executive’s counsel. Such invoices may be redacted to
preserve the attorney-client privilege or attorney-client confidentiality.

 

(d)        So long as the Executive is receiving
severance compensation pursuant to this Section 3.7, or Sections 3.3, 3.4 or
3.5, the Executive shall be entitled to continue to participate, at the Company’s
cost, in all existing benefit plans provided to the Company’s executive
employees at the time of the Executive’s termination or resignation. Such plans
shall include, but are not limited to, then-existing medical, health, dental,
vision, disability, life insurance and death benefit plans. If the terms of
such plans expressly prohibit the Executive from continuing as a participant in
such plans following the date of resignation or termination, the Company will
provide the Executive with benefits equivalent to, or exceeding, those offered
by the then-existing benefit plans offered to the 

 

5

 

Company’s executive
employees, all at the Company’s cost, for the duration of the Executive’s right
to severance compensation hereunder.

 

Any compensation to be paid
to the Executive under the foregoing provisions of this Section 3.7 shall be
subject to the Executive complying with the non-compete provisions of Section
4.1(c) below. In the event the Executive does not so comply, the Company shall
be released from any obligations to the Executive under this Section 3.7.

 

Section
3.8  Options. Any options granted to the
Executive to purchase stock of the Company shall become fully vested on the
date of termination of this Agreement, except in the event termination is by
the Company for reasons specified in Section 3.2 of this Agreement. This
provision shall serve as a contractual modification of any option grants or
agreements between the Executive and the Company, whether such grants or
agreements shall pre-date or postdate this Agreement, and is hereby
incorporated by reference into each such option grant or agreement.

 

Section
3.9  Delay in
Payment of Severance Under Certain Circumstances. Notwithstanding the
timing of payments due to the Executive pursuant to Sections 3.1, 3.3, 3.4,
3.5, or 3.7 hereof, if, on the date of the Executive’s “separation from service”
(as such phrase is defined in Section 1.409A-1(h)(1) of the federal tax
regulations), the Executive is a “specified employee” (as such phrase is
defined in Section 1.409A-1(i) of the federal tax regulations), no such payment
shall be made to the Executive prior to the date that is six months after the
date of the Executive’s separation from service (or, if earlier than the end of
such six-month period, the date of death of the Executive). Payments that, but
for the application of this Section 3.9, would have been made to the Executive
during such six-month period, shall be accumulated and paid to the Executive on
the first day of the seventh month following the date of the Executive’s
separation from service. All other such payments due to the Executive shall be
paid when due pursuant to the terms hereof.

 

ARTICLE IV

 

CONFIDENTIALITY AND COMPETITION

 

Section
4.1  Further Obligations of the Executive
During and After Employment.

 

(a)           The Executive agrees that during the term of her
employment under this Agreement, she will engage in no other business
activities which are or may be competitive with, or which might place her in a
competing position to that of, the Company or any subsidiary of the Company.

 

(b)           The Executive realizes that during the course of her
employment, the Executive will have produced and/or have access to confidential
business plans, information, business opportunity records, notebooks, data,
formula, specifications, trade secrets, customer lists, account lists and
inventions of the Company and its affiliates (“confidential information”). Therefore,
during or 

 

6

 

subsequent to her employment by the Company,
or by an affiliate, the Executive agrees to hold in confidence and not to
directly or indirectly disclose or use or copy or make lists of any such
confidential information, except to the extent authorized by the Company in
writing, or unless the Executive is ordered by a court to produce,  provided the Executive promptly notifies the
Company of receipt of any order or motion to require the production of any
portion of the confidential information. All confidential information, records,
files, business plans, documents, equipment and the like, or copies thereof,
relating to Company’s business, or the business of an affiliated company, which
the Executive shall prepare, or use, or come into contact with, shall remain
the sole property of the Company, or of an affiliated company, and shall not be
removed from the Company’s or the affiliated company’s premises without its
written consent, and shall be promptly returned to the Company upon termination
or resignation of employment with the Company or its affiliated companies.

 

(c)           Because of her employment by the Company, the Executive
will have access to trade secrets and confidential information about the
Company, its business plans, its business accounts, its business opportunities,
its expansion plans into other geographic areas and its methods of doing
business. The Executive agrees that for a period of one (1) year after
termination or resignation of her employment (except if the Executive
terminates this Agreement for cause under Section 3.4 hereof), she will not,
directly or indirectly, compete with the Company or its affiliates in the
business of designing, merchandising, marketing or contracting for the
manufacture of men’s and women’s golf apparel, golf outerwear or golf headwear
within the United States. This non-compete agreement shall be void and of no
further force or effect in the event termination occurs under Section 3.3 or
Section 3.7 hereof and the Company fails to pay the Executive amounts required
under Section 3.3 or Section 3.7 hereof.

 

(d)           In the event a court of competent jurisdiction finds any
provision of this Section 4.1 to be so overbroad as to be unenforceable, then
such provision shall be reduced in scope by the court, but only to the extent
deemed necessary by the court to render the provision reasonable and
enforceable, it being the Executive’s intention to provide the Company with the
broadest protection possible against harmful competition.

 

7

 

ARTICLE V

 

DISABILITY AND ILLNESS

 

Section
5.1  Disability and Salary Continuation.

 

A.            Definition of Total Disability. For purposes of
this Agreement, the terms “totally disabled” and “total disability” shall mean
disability as defined in any total disability insurance policy or policies, if
any, in effect with respect to the Executive. If no insurance policy is in
effect, “total disability” shall mean a medically determinable physical or
mental condition which in the opinion of two independent physicians renders the
Executive unable to perform substantially all of the duties required pursuant
to this Agreement. Total disability shall be deemed to have occurred on the
date of the disabling injury or onset of the disabling illness, as determined
by the two independent physicians.

 

B.            Salary Continuation. If the Executive becomes
totally disabled during the term of this Agreement, her full salary shall be
continued for 360 days from the date of the disabling injury or onset of the
disability illness.

 

Section
5.2  Illness. If the Executive is unable to
perform the services required under this Agreement by reason of illness or
physical injury not amounting to total disability, as defined in this Article,
the compensation otherwise payable to the Executive under this Agreement shall
be continued in full for the remaining term or renewed term of this Agreement,
but in no event for a period exceeding one year.

 

ARTICLE VI

 

GENERAL MATTERS

 

Section
6.1  Governing Law. This Agreement shall be
governed by the laws of the State of Colorado and shall be construed in
accordance therewith.

 

Section
6.2  No Waiver. No provision of this
Agreement may be waived except by an agreement in writing signed by the waiving
party. A waiver of any term or provision shall not be construed as a waiver of
any other term or provision.

 

Section
6.3  Amendment. This Agreement may be
amended, altered or revoked at any time, in whole or in part, by filing with
this Agreement a written instrument setting forth such changes, signed by each
of the parties.

 

Section
6.4  Benefit. This Agreement shall be
binding upon the Executive and the Company, and shall not be assignable by the
Company without the Executive’s written consent.

 

8

 

Section
6.5  Construction. Throughout this
Agreement the singular shall include the plural, and the plural shall income
the singular, and the masculine and neuter shall include the feminine, wherever
the context so requires.

 

Section
6.6  Text to Control. The headings of
articles and sections are included solely for convenience of reference. If any
conflict between any heading and the text of this Agreement exists, the text
shall control.

 

Section
6.7  Severability. If any provision of this
Agreement is declared by any court of competent jurisdiction to be invalid for
any reason, such invalidity shall not affect the remaining provisions. On the
contrary, such remaining provisions shall be fully severable, and this
Agreement shall be construed and enforced as if such invalid provisions had not
been included in the Agreement.

 

Section
6.8  Authority. The officer executing this
Agreement on behalf of the Company has been empowered and directed to do so by
the Board of Directors of the Company.

 

Section
6.9  Effective Date. The effective date of
this Agreement shall be July 1, 2007.

 

	
   

  	
  SPORT-HALEY, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Donald W. Jewell

  	
   

  
	
   

  	
   

  	
  Donald W. Jewell, Chief Executive Officer

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  EXECUTIVE:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   /s/ Catherine B. Blair

  	
   

  
	
   

  	
  Catherine B. Blair

  
						

 

9

 

SPORT-HALEY, INC.

 

EXECUTIVE EMPLOYMENT AGREEMENT

 

Schedule 1

 

Duties and Compensation

 

	
  Executive:

  	
  Catherine B. Blair

  
	
   

  	
   

  
	
  Position:

  	
  Vice President of
  Merchandising and Design

  
	
   

  	
   

  
	
  Base Salary:

  	
  During the year from July
  1, 2007 through June 30, 2008: $160,000 per year, payable bi-weekly; during
  the year from July 1, 2008 through June 30, 2009, and until such Base Salary
  may be further adjusted: $175,000 per year, payable bi-weekly.

  
	
   

  	
   

  
	
  Bonus:

  	
  As determined by the Board
  of Directors and in accordance with Company-wide bonus plan.

  
	
   

  	
   

  
	
  Term:

  	
  July 1, 2007 through June
  30, 2009, subject to automatic one (1) year extensions described in Section
  3.1 of the Amended Executive Employment Agreement.

  
	
   

  	
   

  
	
  Duties and

  	
   

  
	
  Responsibilities:

  	
  Supervision and
  coordination of all merchandising and design operations of the women’s
  division of the Company/Sport-Haley.

  
			

 

 

	
  APPROVED:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  THE COMPANY:

  	
   

  	
  EXECUTIVE:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/Donald W. Jewell

  	
   

  	
   

  	
    /s/Catherine
  B. Blair

  	
   

  
	
   

  	
  Donald W. Jewell, Chief
  Executive

  	
   

  	
  Catherine B. Blair

  	
   

  
	
   

  	
  Officer

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Effective Date: July 1,
  2007

  	
   

  	
   

  
						

 

10Exhibit 10.1
 
Non-Employee Director
Restricted Stock Award and Stock Deferral Program
Under the
Alliant Techsystems Inc.
2005 Stock Incentive Plan
(As amended and restated October 30, 2007)
 
Section 1.  The Program.
 

1.1  Effective
Date; Duration; Administration. The Non-Employee Director Restricted
Stock Award and Stock Deferral Program (“Program”) is being adopted under the
Alliant Techsystems Inc. 2005 Stock Incentive Plan (“Plan”), effective October
30, 2006. The Program is amended and restated as of October 30, 2007. No Award
shall be made under this Program after the date of termination of the 2005
Stock Incentive Plan. The Program shall be subject to the provisions of the
Plan and the terms and conditions set forth in this document. This Program
shall be administered in accordance with the Plan.

 

1.2  Definitions. Capitalized terms used in this document shall have the respective meanings given to such terms in the Plan, unless otherwise defined herein.
 
(a)  “Non-Employee Director” means a Director who is not also an employee of the Company or one of the Company’s Affiliates.
 
(b)  “Change in Control” shall have the meaning set forth in Appendix B to this Program.
 
Section 2. Restricted Stock Awards.
 
2.1  Award Dates.
 
(a)  As of the date of the annual meeting of the Company’s stockholders (“Annual Meeting”) held in 2007, each Non-Employee Director who is elected or reelected to the Board at such Annual Meeting shall be awarded shares of Restricted Stock with a Fair Market Value of $75,000 (rounded to the nearest whole share) as determined by the closing sale price of the Shares on the date of such Annual Meeting. As of the date of each Annual Meeting of the Company’s stockholders beginning with the 2008 Annual Meeting, each Non-Employee Director who is elected or reelected to the Board at such Annual Meeting shall be awarded shares of Restricted Stock with a Fair Market Value of $85,000 (rounded to the nearest whole share) as determined by the closing sale price of the Shares on the date of such Annual Meeting.
 
(b)  A Non-Employee Director who is first elected to the Board on or after August 7, 2006 and before January 1, 2008 at other than an Annual Meeting shall be awarded shares of Restricted Stock as of the Director’s first day of service as a Non-Employee Director with a Fair Market Value of $75,000 (rounded to the nearest whole share) as determined by the closing sale price of the Shares on the date of Award. A Non-Employee Director who is first elected to the Board on or after Janaury 1, 2008 and other than at an Annual Meeting shall be awarded shares of Restricted Stock as of the Director’s first day of service as a Non-Employee Director with a
 
1

 
Fair Market Value of $85,000 (rounded to the nearest whole share) as determined by the closing sale price of the Shares on the date of Award.
 
(c)  A Director may elect, in writing, in accordance with the provisions of Appendix A of this Program, to waive the Director’s right to receive the Award and instead receive an equal number of deferred Restricted Stock Units.
 
2.2  Issuance of Stock. As promptly as practicable after the date as of which a Restricted Stock Award is made, the Company shall issue Shares to the Non-Employee Director, either by book-entry registration or issuance of a stock certificate or certificates, which certificate or certificates shall be held by the Company.
 
2.3  Rights of Holders of Restricted Stock. Upon issuance of the shares of Restricted Stock, the Director shall have, subject to the restrictions of this Program and the Plan, all of the rights of a stockholder with respect to the Shares, including the right to vote the Shares and receive any cash dividends and any other distributions thereon, unless and until the Shares are forfeited.
 

2.4  Restricted
Period. Restricted Stock shall be subject to the restrictions set
forth in Sections 2.5 and 2.7 of this Program and the provisions of the Plan
for a period (the “Restricted Period”) commencing on the date as of which the
Restricted Stock is awarded (the “Award Date”) and ending on the earlier of:

 

(a)           the first anniversary
of the Award Date; or

 

(b)           the first to occur of
the following:

 

(i)            the
retirement of the Director from the Board in compliance with the Board’s
retirement policy as then in effect;

 

(ii)           the
death of the Director;

 

(iii)          the
termination of the Director’s service on the Board because the Director has
been determined to be eligible for Social Security disability benefits (“Disability”);
or

 

(iv)          the
termination of the Director’s service on the Board following a Change in
Control of the Company.

 

2.5  Forfeiture of Restricted Stock. As of the date (“Termination
Date”) a Director ceases to be a member of the Board for any reason, the
Director shall forfeit to the Company all shares of Restricted Stock awarded to
the Director for which the Restricted Period has not ended as of or prior to
the Termination Date.

 

2.6  Release of Restricted Stock. Restricted Stock shall be released to the Director, free and clear of all restrictions and other provisions of this Program or the Plan, on the first business
 
2

 
day immediately following the last day of the Restricted Period. Shares will be delivered to the Director as promptly as practicable after the end of the Restricted Period.
 
2.7  Restrictions. Restricted Stock shall be subject to the following restrictions during the Restricted Period:
 
(a)  The Restricted Stock shall be subject to forfeiture to the Company as provided in Section 2.5 of this Program.
 
(b)  The Restricted Stock may not be sold, transferred, pledged or otherwise encumbered during the Restricted Period, and neither the right to receive the Shares nor any interest under this Program or the Plan may be transferred by a Director, and any attempted transfer shall be void.
 
(c)  Any securities or property (other than cash) that may be issued with respect to the shares of Restricted Stock as a result of any stock dividend, stock split, business combination or other event shall be subject to the restrictions and other provisions of this Program and the Plan.
 
(d) The issuance of Restricted Stock and the delivery of the Shares shall be subject to and contingent upon the completion of any registration or qualification of the Shares under any federal or state law or governmental rule or regulation that the Company, in its sole discretion, determines to be necessary or advisable.
 
3

 
Appendix A
to

Non-Employee Director
Restricted Stock Award and Stock Deferral Program
Under the
Alliant Techsystems Inc.
2005 Stock Incentive Plan
 

Section 1.  Purpose and Effect.

 

(a)           This Appendix A to the
Non-Employee Director Restricted Stock Award and Stock Deferral Program under
the Alliant Techsystems Inc. 2005 Stock Incentive Plan (the “Program”)
authorizes the deferral of income that would otherwise be recognized upon the
lapse of restrictions applicable to Restricted Stock Awards under the Plan.

 

(b)           In accordance with the
rules set forth in this Appendix A, Directors may waive their rights to receive
Restricted Stock Awards under the Program and instead receive an equal number
of deferred Restricted Stock Units in a deferred restricted stock unit account
(“Deferred Restricted Stock Unit Account”) by making a timely deferral election
in accordance with the provisions of this Appendix A (a “Deferral Election”).

 

Section 2.  Deferral Election.

 

(a)           A Non-Employee Director
may make a Deferral Election in accordance with this Appendix A on or before
December 31  of the year preceding the date of the Annual Meeting at
which the Restricted Stock Award is to be made under the Program. If a Director’s
initial election to the Board does not occur at an Annual Meeting, the Director
may make a Deferral Election within 30 days after the date of being elected to
the Board with respect to the Restricted Stock Award that would otherwise be
granted as of the date of the next Annual Meeting. Directors first elected to
the Board at an Annual Meeting are not eligible to make a Deferral Election
with respect to the Restricted Stock Award for the year of election to the
Board. A Director whose initial election to the Board does not occur at an
Annual Meeting may make a Deferral Election with respect to the Restricted Stock
Award that would otherwise be granted upon initial election to the Board no
later than 30 days after first being elected to the Board provided that such
election occurs prior to commencement of service as a Director.

 

(b)           A Deferral Election
made pursuant to this Section 2 shall be timely made in writing and shall
specify the time of payment in accordance with the rules for payment under
Section 4 of this Appendix A. Any Deferral Election made pursuant to this
Section 2 shall be irrevocable and shall apply to 100%, and not less than 100%,
of the shares subject to the Restricted Stock Award. A Deferral Election will
be applicable to all future Restricted Stock Awards unless and until the
Deferral Election is rescinded in writing by the Non-Employee Director
delivered to the Company (to the attention of the Corporate Secretary) by the
time prescribed in Section 2(a) of this Appendix A.

 

4

 

(c)           Deferral Elections and
beneficiary designations made pursuant to this Appendix A must be made in
writing on forms substantially similar to the forms set forth in Exhibit I to
this Appendix A, and shall be subject to such other procedural rules as the
Committee may establish. The election forms must be received by the Company (to
the attention of the Corporate Secretary) by the time prescribed in Section
2(a) of this Appendix A.

 

Section 3.               Deferred Restricted Stock Unit Account. A
Deferred Restricted Stock Unit Account shall be established and maintained for
each Director who has made a Deferral Election, subject to the following rules:

 

(a)           For each share of
Restricted Stock deferred, a Restricted Stock Unit shall be credited to the
Director’s Deferred Restricted Stock Unit Account as of the date the Restricted
Stock Award otherwise would have been granted. The Restricted Stock Units shall
be subject to forfeiture during the Restricted Period specified in Section 2.4
of this Program and any Deferred Restricted Stock Units in the Account shall be
forfeited if the vesting requirement is not satisfied prior to the Payment Date
specified in Section 4 of this Appendix A. No Shares will be issued to a
Director until the Payment Date, as specified in Section 4 of this Appendix A.

 

(b)           On each payment date
for any cash dividends paid on Shares of the Company, the Company shall pay to
each Director an amount equal to the cash dividends that would be payable by
the Company on a number Shares equal to the number of Restricted Stock Units in
the Director’s Deferred Restricted Stock Unit Account as of such payment date. Such
amounts shall be paid directly to each Director in cash and shall not be
eligible for deferral under this Program.

 

(c)           The number of units
credited to the Director’s Deferred Restricted Stock Unit Account shall be appropriately
and equitably adjusted to reflect any change in the outstanding Shares of the
Company in the event of any dividend or other distribution, recapitalization,
stock split, reverse stock split, reorganization, merger, consolidation,
split-up, spin-off, combination, repurchase or exchange of Shares or other
securities of the Company, or other similar corporate transaction or event
affecting the Shares.

 

(d)           Directors who elect to
make a Deferral Election in accordance with this Appendix A will have no rights
as stockholders of the Company with respect to Restricted Stock Units credited
to their Deferred Restricted Stock Unit Accounts.

 

Section 4.               Payment of Deferred Amounts.

 

(a)           Payment of the
aggregate value of the Restricted Stock Units in the Director’s Account shall
be made in a lump sum at the time specified by the Director in his or her
Deferral Election (the “Payment Date”), but in no event later than the later of
the last day of the calendar year in which the Payment Date occurs or the 15th
day of the third calendar month following the Payment Date. Notwithstanding the
foregoing, in all events payment of a Director’s entire Deferred Restricted
Stock Unit Account, subject to the expiration of the Restricted Period, shall
be made in a lump sum as soon as administratively feasible following the
termination of the Director’s service on the Board for any reason, but in no
event later than the later of the last day of the calendar year in which such
termination of service occurs or the ninetieth day following

 

5

 

such termination of service. The date of retirement or termination of
service of a Director shall constitute the Payment Date for purposes of this
Appendix A.

 

(b)           Payment of the
aggregate value of the Restricted Stock Units in a Director’s Deferred
Restricted Stock Unit Account shall be made solely in the form of Shares. As
promptly as practicable following the Payment Date, the Company shall pay to
the Director a number of Shares equal to the number of Restricted Stock Units
in the Director’s Account on the Payment Date. The delivery of the Shares shall
be subject to and contingent upon the completion of any registration or
qualification of the Shares under any federal or state law or governmental rule
or regulation that the Company, in its sole discretion, determines to be
necessary or advisable.

 

Section 5.               Payment in Event of Death of Non-Employee Director. A
Director shall submit to the Company a written designation of the beneficiary
or beneficiaries to whom payment of the aggregate value of the Director’s
Deferred Restricted Stock Unit Account shall be made in the event of the
Director’s death. Beneficiary designations must be in writing on forms
substantially similar to the form set forth in Exhibit I to this Appendix A and
shall be subject to such other procedural rules as the Committee may establish.
Beneficiary designations shall become effective only when received by the
Company. If no beneficiary designation form is on file with the Company on the
date of death of the Director, or if no beneficiary is living on the Payment
Date, the Director’s Account shall be distributed to the representative of the
Director’s estate. Payment to the Director’s designated beneficiary shall be
made in the form of Shares in accordance with the provisions of this Program.

 

Section 6.               Unfunded and Unsecured Program. The
Director’s Deferred Restricted Stock Unit Account shall be hypothetical in
nature and shall be maintained for bookkeeping purposes only. The Deferred
Restricted Stock Unit Account shall be unfunded for tax purposes and no
provision shall be made at any time with respect to segregating assets of the
Company for payment of amounts in the Deferred Restricted Stock Unit Account. The
obligation of the Company to make payments pursuant to this Appendix A
constitutes an unsecured but legally enforceable promise of the Company to make
such payments.

 

Section 7.  Construction. This Appendix A is intended
to comply with section 409A of the Internal Revenue Code of 1986, as amended. Any
Deferral Election that is inconsistent with Code section 409A shall not be
effective.

 

6

 

Exhibit I to Appendix A
to

Non-Employee Director
Restricted Stock Award and Stock Deferral Program
Under the
Alliant Techsystems Inc.
2005 Stock Incentive Plan
 

DEFERRAL ELECTION FORM

 

	
  TO:

  	
   

  	
  Alliant Techsystems Inc.

  
	
   

  	
   

  	
  Attn: Assistant Corporate Secretary

  

 

Pursuant to the terms and conditions of the Alliant Techsystems Inc.
Non-Employee Director Restricted Stock Award and Stock Deferral Program (the “Program”),
I hereby make the following irrevocable Deferral Election with respect to my
future Restricted Stock Award or Awards as indicated below.

 

All capitalized terms not expressly defined in this Deferral Election
Form shall have the meanings set forth in the Program.

 

1.         Deferral Election: I
hereby irrevocably:

 

(a) elect to defer 100% of my Restricted
Stock Awards that would otherwise be granted to me after the end of this
calendar year (or, if newly elected to the Board, after the date of this
Deferral Election) and until rescinded by me for Restricted Stock Awards in
future calendar years in accordance with the Program; and

 

(b) agree that such Restricted Stock Awards
shall be waived.

 

2.         Time of
Payment:  I hereby irrevocably
elect to have my Deferred Restricted Stock Unit Account paid out at the
following time:

 

o  as soon as administratively practicable after
I cease to be a Director of the Company; or

 

o  at
such other time as here specified                                                                       
(at least one year after the Award Date and not later than my termination of
service as a Director or such earlier date as the Program may require).

 

I understand that all payments of my Deferred Restricted Stock Unit
Account will be made in the form of Shares in accordance with the terms of the
Program.

 

 

This Deferral Election is made as of the date
of my signature below. I understand and acknowledge that to be effective this
Deferral Election Form must be fully and properly completed and received by the
Company in accordance with the terms of the Program.

 

I understand that the foregoing elections are
irrevocable and will apply to all of the Restricted Stock Awards to be granted to
me after the effective date of this Deferral Election unless and until I
rescind this election for future Restricted Stock Awards to be made in the
following calendar year and thereafter after my rescission is delivered in
accordance with the Program.

 

I certify that the foregoing elections are
not being made in reliance upon any financial or tax advice given by the
Company. I understand that I should consult my own tax advisor as to the tax
consequences of my Deferral Elections.

 

 

	
  Date:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Signature of Non-Employee Director

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Received by the Company:

  	
   

  
	
   

  	
   

  
	
  Alliant Techsystems Inc.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Date: 

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Acknowledged: 

  	
   

  	
   

  
	
   

  	
  Name and Title

  	
   

  
	
   

  	
  Office of the Corporate Secretary

  	
   

  
											

 

 

Exhibit I to Appendix A

to

Non-Employee Director

Restricted Stock Award and Stock Deferral Program
Under the
Alliant Techsystems Inc.
2005 Stock Incentive Plan

 

DESIGNATION OF BENEFICIARY

(Please type or print)

 

	
  Name of Director

  	
                                                                                                

  	
  Marital Status: Single

  	
   

  	
  o

  
	
  Social Security No.

  	
                                                                                                

  	
  Married

  	
   

  	
  o

  

 

I
hereby revoke any previous designation(s) of beneficiary made by me with
respect to amounts payable by Alliant Techsystems Inc. (the “Company”) under
the Company’s Non-Employee Director Restricted Stock Award and Stock Deferral
Program in the event of my death; and I hereby designate the following
person(s) or entity to receive, upon my death, any such amounts:

 

Primary Beneficiary or Beneficiaries:

 

	
  Name:

  	
                                                                           

  	
  Share:        %

  	
  Relationship:

  	
           

  	
  Birth Date:                          

  
	
  Address:

  	
                                                                                                                 

  	
  SS #

  	
                                                        

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
                                                                           

  	
  Share:        %

  	
  Relationship:

  	
            

  	
  Birth Date:                           

  
	
  Address:

  	
                                                                                                                 

  	
  SS #

  	
                                                         

  	
   

  
															

 

Contingent Beneficiary or Beneficiaries
(if your Primary Beneficiary(ies) all predecease you):

 

	
  Name:

  	
                                                                           

  	
  Share:        %

  	
  Relationship:

  	
           

  	
  Birth Date:                          

  
	
  Address:

  	
                                                                                                                 

  	
  SS #

  	
                                                        

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
                                                                           

  	
  Share:        %

  	
  Relationship:

  	
            

  	
  Birth Date:                           

  
	
  Address:

  	
                                                                                                                 

  	
  SS #

  	
                                                         

  	
   

  
																

 

If none of my Primary or Contingent Beneficiaries survive me, any such
accounts shall be paid to my estate. If you are designating a trust as the
beneficiary, please include the name of the Trust, the name, address and phone
number of the Trustee, the Federal tax I.D. number of the Trust, if available
(in the Social Security number box), and in the Relationship box, write “Trustee”.
If you are naming a charity, provide the name of the person to whom
correspondence regarding the benefit may be addressed, the name, address, phone
number and the Federal tax I.D. number of the charity (if available).

 

	
  Date:

  	
   

  	
   

  	
  Director’s Signature:

  	
   

  	
   

  

 

 

Appendix B

to

Non-Employee Director

Restricted Stock Award and
Stock Deferral Program

Under the

Alliant Techsystems Inc.

2005 Stock Incentive Plan

 

“Change in Control” means any of the following:

 

•      The acquisition by any “person”
or group of persons (a “Person”), as such terms are used in Section 13(d) and
14(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)
(other than the Company or a “Subsidiary” (as defined below) or any Company
employee benefit plan (including its trustee)) of “beneficial ownership” (as
defined in Rule 13d-3 under the Exchange Act) (“Beneficial Ownership”),
directly or indirectly, of securities of the Company representing, directly or
indirectly, more than 50% of the total number of shares of the Company’s then
outstanding “Voting Securities” (as defined below);

 

•      consummation of a
reorganization, merger or consolidation of the Company, or the sale or other
disposition of all or substantially all of the Company’s assets (a “Business
Combination”), in each case, unless, following such Business Combination, the
individuals and entities who were the beneficial owners of the total number of
shares of the Company’s outstanding Voting Securities immediately prior to both
(1) such Business Combination and (2) any “Change Event” (as defined below)
occurring within 12 months prior to such Business Combination, beneficially
own, directly or indirectly, more than 50% of the total number of shares of the
outstanding Voting Securities of the resulting corporation, or the acquiring
corporation, as the case may be, immediately following such Business
Combination (including, without limitation, the outstanding Voting Securities
of any corporation which as a result of such transaction owns the Company or
all or substantially all of the Company’s assets either directly or through one
or more subsidiaries) in substantially the same proportions as their ownership,
immediately prior to such Business Combination, of the total number of shares
of the Company’s outstanding Voting Securities; or

 

•      any other circumstances
(whether or not following a Change Event) which the Company’s Board of Directors
(the “Board”) determines to be a Change in Control for purposes of this Plan
after giving due consideration to the nature of the circumstances then
represented and the purposes of this Plan. Any such determination made by the
Board shall be irrevocable except by vote of a majority of the members of the
Board who voted in favor of making such determination.

 

For purposes of this definition, a “Change in Control” shall not result
from any transaction precipitated by the Company’s insolvency, appointment of a
conservator, or determination by a regulatory agency that the Company is
insolvent.

 

 

For purposes of this definition:

 

•      “Change Event” means

 

(1)   the acquisition by any Person (other than the
Company or a Subsidiary or any Company employee benefit plan (including its
trustee)) of Beneficial Ownership, directly or indirectly, of securities of the
Company directly or indirectly representing 15% or more of the total number of
shares of the Company’s then outstanding Voting Securities (excluding the sale
or issuance of such securities directly by the Company, or where the
acquisition of such securities is made by such Person from five or fewer
stockholders in a transaction or transactions approved in advance by the
Board);

 

(2)   the public announcement by any Person of an
intention to acquire the Company through a tender offer, exchange offer, or
other unsolicited proposal; or

 

(3)   the individuals who are members of the Board (the “Incumbent
Board”) as of the Award Date set forth in the Program cease for any reason to
constitute at least a majority of the Board; provided, however, that if the
nomination for election of any new director was approved by a vote of a
majority of the Incumbent Board, such new director shall, for purposes of this
definition, be considered a member of the Incumbent Board.

 

•      “Subsidiary” means a
corporation as defined in Section 424(f) of the Internal Revenue Code with the
Company being treated as the employer corporation for purposes of this
definition.

 

•      “Voting Securities” means
any shares of the capital stock or other securities of the Company that are
generally entitled to vote in elections for directors.

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