Document:

Exhibit
10.7

 

 

ALLIANT TECHSYSTEMS INC.

SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

 

Effective January 1, 2003

 

 

ALLIANT TECHSYSTEMS INC.

SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

 

TABLE OF CONTENTS

 

	
  SECTION
  1.

  	
  INTRODUCTION

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  1.1.

  	
  Purposes
  of Plan

  	
   

  
	
   

  	
  1.2.

  	
  History

  	
   

  
	
   

  	
  1.3.

  	
  Adoption
  of Plan

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION
  2.

  	
  PLAN
  NAME

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION
  3.

  	
  PARTICIPATING
  EMPLOYEES

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  3.1.

  	
  Participating Employees

  	
   

  
	
   

  	
  3.2.

  	
  Applicable Pension Plans

  	
   

  
	
   

  	
  3.3.

  	
  Overriding Exclusion

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION
  4.

  	
  BENEFITS
  PAYABLE

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  4.1.

  	
  Benefit for Participating Employees

  	
   

  
	
   

  	
   

  	
  4.1.1.

  	
  Amount of Benefit

  	
   

  
	
   

  	
   

  	
  4.1.2.

  	
  Form of Payment

  	
   

  
	
   

  	
  4.2.

  	
  Benefit to Beneficiaries

  	
   

  
	
   

  	
   

  	
  4.2.1.

  	
  Amount of Benefit

  	
   

  
	
   

  	
   

  	
  4.2.2.

  	
  Form of Payment

  	
   

  
	
   

  	
  4.3.

  	
  Payment Subsequent to a Change of Control

  	
   

  
	
   

  	
  4.4.

  	
  Special Rule for CECP

  	
   

  
	
   

  	
  4.5.

  	
  Vesting

  	
   

  
	
   

  	
  4.6.

  	
  General Distribution Rules

  	
   

  
	
   

  	
   

  	
  4.6.1.

  	
  Section 162(m) Determination

  	
   

  
	
   

  	
   

  	
  4.6.2.

  	
  Exception for Small Benefits

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION
  5.

  	
  FUNDING

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  5.1.

  	
  Funding

  	
   

  
	
   

  	
  5.2.

  	
  Corporate Obligation

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION
  6.

  	
  GENERAL
  MATTERS

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  6.1.

  	
  Amendment and Termination

  	
   

  
	
   

  	
  6.2.

  	
  Limited
  Benefits

  	
   

  
							

 

i

 

	
   

  	
  6.3.

  	
  Spendthrift
  Provision

  	
   

  
	
   

  	
  6.4.

  	
  Errors in Computations

  	
   

  
	
   

  	
  6.5.

  	
  Correction of Errors

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION
  7.

  	
  FORFEITURE
  OF BENEFITS

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION
  8.

  	
  DETERMINATIONS
  AND CLAIMS PROCEDURE

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  8.1.

  	
  Determinations

  	
   

  
	
   

  	
  8.2.

  	
  Claims
  Procedure

  	
   

  
	
   

  	
   

  	
  8.2.1.

  	
  Original Claim

  	
   

  
	
   

  	
   

  	
  8.2.2.

  	
  Review of Denied Claim

  	
   

  
	
   

  	
   

  	
  8.2.3.

  	
  General Rules

  	
   

  
	
   

  	
  8.3.

  	
  Limitations and Exhaustion

  	
   

  
	
   

  	
   

  	
  8.3.1.

  	
  Limitations

  	
   

  
	
   

  	
   

  	
  8.3.2.

  	
  Exhaustion Required

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 9.

  	
  PLAN
  ADMINISTRATION

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  9.1.

  	
  Officers

  	
   

  
	
   

  	
  9.2.

  	
  Chief Executive Officer

  	
   

  
	
   

  	
  9.3.

  	
  Board of Directors

  	
   

  
	
   

  	
  9.4.

  	
  Pension and Retirement Committee

  	
   

  
	
   

  	
  9.5.

  	
  Delegation

  	
   

  
	
   

  	
  9.6.

  	
  Conflict of Interest

  	
   

  
	
   

  	
  9.7.

  	
  Administrator

  	
   

  
	
   

  	
  9.8.

  	
  Service of Process

  	
   

  
	
   

  	
  9.9.

  	
  Expenses

  	
   

  
	
   

  	
  9.10.

  	
  Tax
  Withholding

  	
   

  
	
   

  	
  9.11.

  	
  Certifications

  	
   

  
	
   

  	
  9.12.

  	
  Rules and Regulations

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION
  10.

  	
  CONSTRUCTION

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  10.1.

  	
  Defined
  Terms

  	
   

  
	
   

  	
  10.2.

  	
  ERISA
  Status

  	
   

  
	
   

  	
  10.3.

  	
  IRC
  Status

  	
   

  
	
   

  	
  10.4.

  	
  Effect on Other Plans

  	
   

  
	
   

  	
  10.5.

  	
  Disqualification

  	
   

  
	
   

  	
  10.6.

  	
  Rules of Document Construction

  	
   

  
	
   

  	
  10.7.

  	
  References to Laws

  	
   

  
	
   

  	
  10.8.

  	
  Effect on Employment

  	
   

  
	
   

  	
  10.9.

  	
  Choice
  of Law

  	
   

  

 

ii

 

	
  APPENDIX A —

  	
  ALLIANT TECHSYSTEMS INC SUPPLEMENTARY
  EXECUTIVE RETIREMENT PLAN FOR CECP PARTICIPANTS

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  APPENDIX B —

  	
  ALLIANT TECHSYSTEMS INC SUPPLEMENTARY
  EXECUTIVE RETIREMENT PLAN FOR BENEFITS IN EXCESS OF LIMITS UNDER TAX REFORM
  ACT OF 1986

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  APPENDIX C —

  	
  ALLIANT TECHSYSTEMS INC. DEFERRED
  COMPENSATION PLAN

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  APPENDIX D —

  	
  CORDANT TECHNOLOGIES INC. SUPPLEMENTAL
  EXECUTIVE RETIREMENT PLAN

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  APPENDIX E —

  	
  INDIVIDUAL EMPLOYMENT AGREEMENTS

  	
   

  

 

iii

 

ALLIANT TECHSYSTEMS INC.

SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

 

SECTION 1

 

INTRODUCTION

 

1.1.          Purposes of Plan.  The purposes
of the Alliant Techsystems Inc. Supplemental Executive Retirement Plan
are:  (1) to restore the benefit amounts
that would be payable to select participants in certain tax-qualified defined
benefit pension plans sponsored by Alliant Techsystems Inc. (“Alliant”) as
described in Section 3.2 hereof (the “Pension Plans”) absent the
limitations in sections 401(a)(17) and 415 of the Internal Revenue Code of
1986, as amended (the “Code”) and absent a participant’s election to
voluntarily defer compensation, (2) to pay frozen benefits under certain
frozen plans as described in Appendix B, Appendix C and Appendix D,
and (3) in certain cases, to provide additional benefits pursuant to
employment agreements or other similar agreements between Alliant and employees
who are members of a select group of management or highly compensated employees
as described in Appendix E.

 

1.2.          History.  Alliant has heretofore adopted tax-qualified
defined benefit Pension Plans called: 
“ALLIANT TECHSYSTEMS INC. PENSION AND RETIREMENT PLAN,” “ALLIANT
TECHSYSTEMS INC. RETIREMENT INCOME PLAN (GOCO),” “ALLIANT LAKE CITY RETIREMENT
PLAN” and the “THIOKOL PROPULSION PENSION PLAN” (the “Pension Plans”) for the
purpose of providing retirement benefits to certain of its employees and
employees of certain affiliates.  The
Pension Plans are subject to the Employee Retirement Income Security Act of
1974, as amended, (“ERISA”) and are intended to qualify under
section 401(a) of the Code.  By
operation of section 401(a) of the Code, benefits under the Pension Plans
are restricted so that they do not exceed maximum benefits allowed under
section 415 of the Code.  In addition,
the maximum amount of annual compensation which may be taken into account for
any plan participant may not exceed a fixed dollar amount which is established
under section 401(a)(17) of the Code.

 

In 1990, Alliant was
spun-off from Honeywell Inc. and, in connection therewith, established the
Alliant Techsystems Inc. Retirement Plan as a “spin-off” from the Honeywell
Inc. Retirement Benefit Plan.  Effective
September 28, 1990, for the purpose of paying the benefits Participating
Employees would have been entitled to if Code section 415 and Code
section 401(a)(17) limitations were not in effect and, also, to pay
certain employees transferred from Honeywell Inc. benefits already accrued
under the nonqualified plans sponsored by Honeywell Inc., Alliant adopted a
plan known as the “ALLIANT TECHSYSTEMS INC. SUPPLEMENTARY RETIREMENT PLAN
(SRP)” by adoption of a document entitled the “Honeywell Supplementary
Retirement Plan (SRP)”, and a plan known as the “ALLIANT TECHSYSTEMS INC.
SUPPLEMENTARY EXECUTIVE RETIREMENT PLAN FOR COMPENSATION IN EXCESS OF $200,000
($200K SERP)” by adoption of a document entitled the “Honeywell Supplementary
Executive Retirement Plan for Compensation in Excess of $200,000 ($200K SERP)
(Amended through April 17, 1990)”. 
In addition, Alliant adopted a plan known as the

 

 

“ALLIANT TECHSYSTEMS INC.
SUPPLEMENTARY EXECUTIVE RETIREMENT PLAN FOR CECP PARTICIPANTS” by adoption of a
document entitled the “Honeywell Supplementary Executive Retirement Plan for
CECP Participants (Amended Through April 17, 1990)” as a frozen plan with
benefits only for certain employees acquired from Honeywell Inc. who were
participants in the Plan while employed by Honeywell Inc.  Alliant also adopted a plan known as the
“ALLIANT TECHSYSTEMS INC. SUPPLEMENTARY EXECUTIVE RETIREMENT PLAN FOR BENEFITS
IN EXCESS OF LIMITS UNDER TAX REFORM ACT OF 1986” by adoption of a document
entitled the “Honeywell Supplementary Executive Retirement Plan for Benefits in
Excess of Limits under Tax Reform Act of 1986” as a frozen plan with benefits
only for certain employees acquired from Honeywell Inc. who were participants
in the Plan while employed by Honeywell Inc.

 

Pursuant to the
subsequent acquisition of certain assets, employees and pension plan assets and
obligations from Hercules Incorporated (the “Hercules Acquisition”), effective
March 15, 1995, Alliant adopted a plan known as the “ALLIANT TECHSYSTEMS
INC. AEROSPACE PENSION RESTORATION PLAN” by adoption of the portion of a
document entitled the “Hercules Employee Pension Restoration Plan Effective
October 1, 1990” that provides benefits based on the Hercules Incorporated
Retirement Income Plan and its successor plans, including the Hercules
Incorporated Retirement Income Plan (Government-Owned, Corporation-Operated)
and the Hercules Incorporated Pension Plan.

 

Alliant also adopted,
pursuant to the Hercules Acquisition, the ALLIANT TECHSYSTEMS INC. DEFERRED
COMPENSATION PLAN (a plan which is memorialized in a document entitled the
“Hercules Deferred Compensation Plan”) as a frozen plan with frozen benefits
for certain employees acquired from Hercules Incorporated.

 

Effective
September 1, 1999, Alliant adopted a nonqualified deferred compensation
plan known as the “ALLIANT TECHSYSTEMS INC. MANAGEMENT DEFERRED COMPENSATION
PLAN” which provides that certain employees can voluntarily defer compensation
pursuant to a prior irrevocable agreement. 
Effective as of January 1, 2003, Alliant amended and restated its
nonqualified deferred compensation plan by the adoption of a document entitled
“ALLIANT TECHSYSTEMS INC. NONQUALIFIED DEFERRED COMPENSATION PLAN.”

 

Pursuant to the
acquisition of certain assets, employees and pension plan assets and
obligations from Alcoa, Inc. (the “Thiokol Acquisition”), Alliant adopted a
plan known as the THIOKOL CORPORATION EXCESS PENSION PLAN (a plan which is
memorialized in a document entitled “Thiokol Corporation Excess Pension Plan
(Restated Effective October 1, 1990)”) that provides benefits based on the
Thiokol Propulsion Pension Plan for certain Thiokol Propulsion employees
acquired from Alcoa, Inc.  The Thiokol
Corporation Excess Pension Plan shall be merged with and into this Alliant
Techsystems Inc. Supplemental Executive Pension Plan effective January 1,
2003.

 

Alliant also adopted,
pursuant to the Thiokol Acquisition, the CORDANT TECHNOLOGIES INC. SUPPLEMENTAL
EXECUTIVE RETIREMENT PLAN (a plan which is memorialized in a document entitled
“CORDANT TECHNOLOGIES INC. SUPPLEMENTAL EXECUTIVE

 

2

 

RETIREMENT PLAN Amended
and Restated Effective July 22, 1999”), as a frozen plan with frozen
benefits for certain employees acquired from Alcoa, Inc.  The Cordant Technologies Inc. Supplemental
Executive Retirement Plan shall be merged with and into this Alliant
Techsystems Inc. Supplemental Executive Pension Plan effective January 1,
2003.

 

1.3.          Adoption of Plan.  Effective
January 1, 2003, Alliant does hereby adopt this document entitled “ALLIANT
TECHSYSTEMS INC. SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN” as a complete
amendment and restatement of the Alliant Techsystems Inc. Supplementary
Retirement Plan, the Alliant Techsystems Inc. Supplementary Executive
Retirement Plan for Compensation in Excess of $200,000, the Alliant Techsystems
Inc. Supplementary Executive Retirement Plan for CECP Participants, the Alliant
Techsystems Inc. Supplementary Executive Retirement Plan for Benefits in Excess
of Limits under Tax Reform Act of 1986, the Alliant Techsystems Inc. Aerospace
Pension Restoration Plan, the Alliant Techsystems Inc. Deferred Compensation
Plan, the Thiokol Corporation Excess Pension Plan and the Cordant Technologies
Inc. Supplemental Executive Retirement Plan for employees who retire, die or
otherwise terminate employment on or after January 1, 2003.

 

The Alliant Techsystems
Inc. Supplementary Executive Retirement Plan for CECP Participants is attached
as Appendix A and incorporated herein for purposes of paying the benefits
due thereunder, effective January 1, 2003.  It applies only to those Participating Employees who were
participants in the Honeywell Inc. CECP Plan and who are entitled to a
“grandfathered” benefit under the Alliant Techsystems Inc. Retirement Plan.

 

The Alliant Techsystems
Inc. Supplementary Executive Retirement Plan for Benefits in Excess of Limits
under Tax Reform Act of 1986 is attached as Appendix B and incorporated
herein for purposes of paying the benefits due thereunder, effective
January 1, 2003.  It applies only
to those Participating Employees who were participants in such plan and who are
entitled to a “grandfathered” benefit under Alliant Techsystems Inc. Retirement
Plan.

 

The Alliant Techsystems
Inc. Deferred Compensation Plan is attached as Appendix C and incorporated
herein for purposes of paying frozen benefits for certain employees acquired
from Hercules Incorporated.

 

The Cordant Technologies
Supplemental Executive Retirement Plan is attached as Appendix D and
incorporated herein for purposes of paying any benefit obligations acquired
under that plan, which will be paid hereunder.

 

3

 

SECTION
2

 

PLAN NAME

 

This plan shall be
referred to as the ALLIANT TECHSYSTEMS INC. SUPPLEMENTAL EXECUTIVE RETIREMENT
PLAN (the “Plan”).

 

SECTION
3

 

PARTICIPATING EMPLOYEES

 

3.1.          Participating Employees.  The individuals eligible to participate in and receive benefits
under the Plan (“Participating Employees”) are those employees of Alliant
Techsystems Inc. and its affiliates:

 

(a)                                  who
are participants in the Alliant Techsystems Inc. Nonqualified Deferred
Compensation Plan or any other nonqualified deferred compensation plan
maintained by Alliant and its affiliates; or

 

(b)                                 whose
individual employment agreement or other separate written agreement between
Alliant (or an affiliate of Alliant) and such employee specifies that such
employee is eligible to receive benefits under this Plan; or

 

(c)                                  who
are Participants in one of the Pension Plans (as described in Section 3.2
below) and (i) who are actively employed by Alliant Techsystems Inc. or its
affiliates or on approved leave of absence, and (ii) whose benefits under
the applicable Pension Plan would be greater if computed without regard to the
limits imposed under Code sections 401(a)(17) and 415; or

 

(d)                                 who
are affirmatively selected for participation in this Plan by the Chief
Executive Officer (“CEO”) of Alliant (or any person authorized to act on behalf
of the CEO by the Board of Directors of Alliant Techsystems Inc. (the “Board of
Directors”) and, for a Section 16 Officer, by the Board of Directors).

 

For purposes of this
Plan, a Section 16 Officer is an officer of Alliant (or an affiliate of
Alliant) who is subject to the provisions of Section 16 of the Securities
Exchange Act of 1934, as amended.  Notwithstanding
anything apparently to the contrary contained in this Plan, the Plan shall be
construed and administered to prevent the duplication of benefits provided
under this Plan and any other qualified or nonqualified plan maintained in
whole or in part by Alliant or any predecessor, successor or affiliate.

 

4

 

3.2.          Applicable Pension Plans.  For purposes of this Plan, the “Pension Plans” are:

 

(a)                                  Alliant
Techsystems Inc. Pension and Retirement Plan, including the benefit structures
under such plan known as the Alliant Techsystems Inc. Retirement Plan, the
Alliant Techsystems Inc. Aerospace Pension Plan, the ATK SEG Retirement Plan
and the Federal Cartridge Company Pension Plan and the ATK Pension Equity Plan;

 

(b)                                 Alliant
Techsystems Inc. Retirement Income Plan (GOCO), including the benefit structure
known as the ATK Pension Equity Plan;

 

(c)                                  Alliant
Lake City Retirement Plan; and

 

(d)                                 Thiokol
Propulsion Pension Plan, including the benefit structure known as the ATK
Pension Equity Plan.

 

3.3.          Overriding Exclusion.  Notwithstanding anything apparently to the contrary in this Plan
or in any written communication, summary, resolution or document or oral
communication, no individual shall be a Participating Employee in this Plan,
develop benefits under this Plan or be entitled to receive benefits under this
Plan (either for the employee or his or her survivors) unless such individual
is a member of a select group of management or highly compensated employees (as
that expression is used in ERISA).  If a
court of competent jurisdiction, any representative of the U.S. Department of
Labor or any other governmental, regulatory or similar body makes any direct or
indirect, formal or informal, determination that an individual is not a member
of a select group of management or highly compensated employees (as that
expression is used in ERISA), such individual shall not be (and shall not have
ever been) a Participating Employee in this Plan at any time.  If any person not so defined has been
erroneously treated as a Participating Employee in this Plan, upon discovery of
such error such person’s erroneous participation shall immediately terminate ab initio and upon demand such person
shall be obligated to reimburse Alliant for all amounts erroneously paid to him
or her.

 

SECTION
4

 

BENEFITS PAYABLE

 

4.1.          Benefit for Participating Employees

 

4.1.1.       Amount of Benefit.  This Plan shall pay to Participating
Employees the excess, if any, of

 

(a)                                  the
amount that would have been payable under the applicable Pension Plan if such
benefit had been determined:

 

5

 

(i)                                     without
regard to the benefit limitations under section 415 of the Code, and

 

(ii)                                  without
regard to compensation limitation of section 401(a)(17) of the Code, and

 

(iii)                               by including in
Recognized Compensation, Earnings and Final Average Earnings (as defined under
the applicable Pension Plan) amounts not otherwise included because they were
deferred at the election of the Participating Employee under the Alliant Techsystems
Inc. Nonqualified Deferred Compensation Plan or any other nonqualified deferred
compensation plan at the time or times when they would have been included but
for such election to defer; and

 

(iv)                              as
adjusted pursuant to the terms of any employment agreement or any separate
written agreement between Alliant (or an affiliate of Alliant) and the
Participating Employee; minus

 

(b)                                 the
amount actually paid from the applicable Pension Plan.

 

Notwithstanding anything
to the contrary in the Plan, if the Participating Employee is a Participant in
the Alliant Techsystems Inc. Pension and Retirement Plan under the benefit
structure formerly known as the ATK SEG Retirement Plan or the Federal
Cartridge Company Pension Plan, any service of such Participating Employee
before December 7, 2001, shall be disregarded for benefit accrual purposes
in determining any excess benefit provided under this Plan.

 

4.1.2.       Form of Payment.  This benefit (minus any withholding and
payroll taxes which must be deducted therefrom) shall be paid to the
Participating Employee in the same manner, at the same time, for the same
duration and in the same form as if such benefit has been paid directly from
the applicable Pension Plan.  All
elections and optional forms of settlement in effect and all other rules
governing the payment of benefits under the applicable Pension Plan shall, to
the extent practicable, be given effect under this Plan so that the
Participating Employee will receive from a combination of the applicable
Pension Plan and this Plan the same benefit (minus the withholding, payroll and
other taxes which must be deducted therefrom) which would have been received
under the applicable Pension Plan if this Plan benefit had been paid from the
applicable Pension Plan.

 

4.2.          Benefit to Beneficiaries.

 

4.2.1.       Amount of Benefit.  Unless the
Participating Employee has received a lump sum under Section 4.1 hereof,
there shall be paid under this Plan to the surviving spouse or other joint or
contingent annuitant or beneficiary the excess, if any, of

 

6

 

(a)                                  the
amount which would have been payable under the applicable Pension Plan if such
benefit had been determined:

 

(i)                                     without
regard to the benefit limitations of section 415 of the Code, and

 

(ii)                                  without
regard to compensation limitation of section 401(a)(17) of the Code, and

 

(iii)                               by including in
Recognized Compensation, Earnings and Final Average Earnings (as defined under
the applicable Pension Plan) amounts not otherwise included because they were
deferred at the election of the Participating Employee under the Alliant
Techsystems Inc. Nonqualified Deferred Compensation Plan or any other
nonqualified deferred compensation plan at the time or times when they would
have been included but for such election to defer; and

 

(iv)                              as
adjusted pursuant to the terms of any employment agreement or any separate
written agreement between Alliant and the Participating Employee; minus

 

(b)                                 the
amount actually paid from the applicable Pension Plan.

 

4.2.2.       Form of Payment.  Except as may be specifically provided in
this Plan, this benefit (minus any withholding and payroll taxes which must be
deducted therefrom) shall be paid to such person in the same manner, at the
same time, for the same duration and in the same form as if such benefit has
been paid directly from the applicable Pension Plan.  All elections and optional forms of settlement in effect and all
other rules governing the payment of benefits under the applicable Pension Plan
shall, to the extent practicable, be given effect under this Plan so that such
person will receive from a combination of the applicable Pension Plan and this
Plan the same benefit (minus the withholding, payroll and other taxes which
must be deducted therefrom) if this Plan benefit had been paid from the
applicable Pension Plan.

 

4.3.          Payment Subsequent to a Change of
Control.  Notwithstanding any Plan provision to the
contrary, if subsequent to a Change of Control (as defined in the applicable
Pension Plan), a Participating Employee’s termination of employment is a
Qualifying Termination (as defined below), the present value of the benefits
payable pursuant to Section 4.1 utilizing the actuarial assumptions,
factors and methods in effect for the applicable Pension Plan for funding
purposes immediately prior to the Change of Control shall be paid as a lump sum
cash payment to the Participating Employee within thirty (30) days after such
termination.

 

7

 

For purposes of this Section 4.3,
a “Qualifying Termination” means the occurrence of one of the following events
within three (3) years after the Change of Control:

 

(a)                                  a
termination of employment of a Participating Employee for any reason other than
Cause (as defined below), retirement or Disability (as defined by the
applicable Pension Plan); or

 

(b)                                 the
voluntary termination of a Participating Employee for one or more of the
following reasons:

 

(i)                                     Salary
reduction below rates in effect immediately prior to the Change of Control;

 

(ii)                                  Bonus
reduction below the greater of target as in effect immediately prior to the
Change of Control or the average of the past three (3) years;

 

(iii)                               Long-term incentive
opportunity reduction, below the economic value of all annual awards granted
under the policies in effect prior the Change of Control;

 

(iv)                              Welfare
benefits or retirement program reduction, unless the program applies to all
exempt employees and is terminated by Alliant in its entirety or a materially
comparable substitute plan is made available;

 

(v)                                 Change
in work location of 50 miles or greater, unless consented to by the
Participating Employee or permitted by an employment agreement;

 

(vi)                              Reduction
in title or responsibilities; or

 

(vii)                           Failure by Alliant to obtain
the assumption of the Plan from a successor;

 

provided; however, such termination shall not be
deemed a Qualifying Termination unless Alliant receives written notice from the
Participating Employee within 60 days after the occurrence of such events
and Alliant does not cure the stated reason within 30 days.

 

(c)                                  Termination
by Alliant within one year after a Change Event if it can be demonstrated that
the termination was at the request of a third party that had entered into
negotiations or an agreement with Alliant with respect to a subsequent Change
of Control or was otherwise in connection with such Change of Control.  For purposes of this Section 4.3, a
“Change Event” is determined to occur upon one or more of the following events:

 

8

 

(i)                                     acquisition
by an individual, entity or group of 15% or more of Alliant’s stock (excluding
a sale or issuance by Alliant or where the acquisition is made from five or
fewer shareholders in a transaction approved in advance by the Board of
Directors).

 

(ii)                                  the
public announcement of the intention to acquire Alliant through a tender offer,
exchange offer or other unsolicited proposal.

 

Termination due to
retirement, death or Disability does not constitute a Qualifying Termination.

 

For purposes of this
Section 4.3, “Cause” is defined as:

 

(a)                                  Conviction
of a felony or guilty or nolo contendere plea in connection therewith)
involving a sentence of incarceration of at least three (3) months, provided
such felony relates to Alliant’s business or activities engaged in while on
Alliant’s premises or in connection with Alliant’s business; or

 

(b)                                 Board
determination of a material breach of duties and responsibilities, subject to a
thirty-day cure period.

 

4.4.          Special Rule for CECP.  This Plan shall pay to Participating Employees who are also
entitled to benefits under the Alliant Techsystems Inc. Supplementary Executive
Retirement Plan for CECP Participants (see Appendix A) the excess, if any,
of:

 

(i)                                     the
amount that would have been payable under the applicable Pension Plan if such
benefit had been determined without regard to the benefit limitations under
section 415 of the Code and without regard to compensation limitation of
section 401(a)(17) of the Code plus, if applicable, the amount that would
have been payable if the amount of any deferred incentive award in the year in
which the award would otherwise have been paid by the Honeywell Inc. Corporate
Executive Compensation Plan would have been included under the definition of
“Earnings” for purposes of arriving at “Final Average Earnings,” over

 

(ii)                                  the
amount actually paid from the applicable Pension Plan after taking into account
the benefit limitations under section 415 of the Code and the compensation
limitation of section 401(a)(17) of the Code plus, if applicable, the
amount actually paid from the Honeywell Inc. Corporate Executive Compensation
Plan for CECP Participants (Appendix A).

 

This benefit (minus any
withholding and payroll taxes which must be deducted therefrom) shall be paid
to the Participating Employee in the same manner, at the same time, for the
same

 

9

 

duration and in the same
form as if such benefit has been paid directly from the applicable Pension
Plan.  All elections and optional forms
of settlement in effect and all other rules governing the payment of benefits
under the applicable Pension Plan shall, to the extent practicable, be given
effect under this Plan so that the Participating Employee will receive from a
combination of the applicable Pension Plan and this Plan the same benefit
(minus the withholding, payroll and other taxes which must be deducted
therefrom) which would have been received under the applicable Pension Plan if
the limitation on benefits under section 415 of the Code, the compensation
limitation of section 401(a)(17) of the Code and the exclusion from the
definition of “Earnings” of the amount of any deferred incentive award had not
been in effect.

 

4.5.          Vesting.  The benefit of a Participating Employee under this Plan shall
vest when the applicable Pension Plan vests, including any full (100%) vesting
due to a Change in Control (as defined under the applicable Pension Plan), or,
if earlier, pursuant to the terms of any employment agreement or separate
written agreement between Alliant (or an affiliate of Alliant) and the
Participating Employee.

 

4.6.          General Distribution Rules.

 

4.6.1.       Section 162(m) Determination.  If a Participating Employee will receive a
lump sum under the Plan pursuant to Section 4.1 or Section 4.3 and if
the PRC (or, for any Section 16 Officer, the Board of Directors)
determines that delaying the time such payment is made would increase the
probability that such payment would be fully deductible for federal or state
income tax purposes, Alliant may unilaterally delay the time of the making of
such payment or any portion of such payment for up to twenty-four (24) months
after the date such payment would otherwise be payable.

 

4.6.2.       Exception for Small Benefits.  Notwithstanding any other provision of this
Plan to the contrary, Alliant, in its discretion, may pay any benefit (or any
remaining benefit) which is payable under this Plan to a Participating Employee
or a Beneficiary in a lump sum payment if the present value of the benefit (as
determined under the actuarial factors for the applicable Pension Plan for such
Participating Employee or Beneficiary) is $50,000 or less.

 

SECTION
5

 

FUNDING

 

5.1.          Funding.  Alliant shall be responsible for paying all
benefits due hereunder.  Until all
payments due under Section 4 are paid in full and for the purpose of
facilitating the payment of benefits due under those Sections, Alliant may (but
shall not be required to) establish and maintain a grantor trust pursuant to an
agreement between Alliant and a trustee selected by Alliant; provided, however,
that any such grantor trust must be structured so that it does not result in
any federal income tax consequences to any Participating Employee until such
employee actually receives payments due under Section 4.  Alliant may contribute to a grantor trust
thereby created such amounts as it may from time to time determine.

 

10

 

5.2.          Corporate Obligation.  Neither Alliant’s officers nor any member of its Board of
Directors nor any member of the PRC in any way secures or guarantees the
payment of any benefit or amount which may become due and payable hereunder to
or with respect to any Participating Employee. 
Each Participating Employee and other person entitled at any time to
payments hereunder shall look solely to the assets of Alliant for such payments
as an unsecured, general creditor. 
After benefits shall have been paid to or with respect to a Participating
Employee and such payment purports to cover in full the benefit hereunder, such
former Participating Employee or other person or persons, as the case may be,
shall have no further right or interest in the other assets of Alliant in
connection with this Plan.  Neither
Alliant nor any of its officers nor any member of its Boards of Directors nor
any member of the PRC shall be under any liability or responsibility for
failure to effect any of the objectives or purposes of the Plan by reason of
the insolvency of Alliant.

 

SECTION
6

 

GENERAL MATTERS

 

6.1.          Amendment and Termination.  Alliant reserves the power to amend this Plan either
prospectively or retroactively or both:

 

(a)                                  in
any respect by resolution of the Board of Directors of Alliant; or

 

(b)                                 in
any respect by action of the Personnel and Compensation Committee of the Board
of Directors of Alliant (or any successor committee); or

 

(b)                                 in
any respect by action of any other committee or person determined by the Board
of Directors of Alliant;

 

at any time and for any
reason deemed sufficient by it without notice to any person affected by this
Plan and may likewise terminate or curtail the benefits of this Plan both with
regard to persons expecting to receive benefits in the future and persons
already receiving benefits at the time of such action; provided, however, that
Alliant may not amend or terminate the Plan with respect to benefits that have
accrued and are vested pursuant to Section 4.3, the applicable Pension
Plan or an individual agreement between Alliant and the Participating Employee.  No modification of the terms of this Plan
shall be effective unless it is in writing and signed on behalf of Alliant by a
person authorized to execute such writing. 
No oral representation concerning the interpretation or effect of this
Plan shall be effective to amend the Plan.

 

6.2.          Limited Benefits.  This Plan
shall not provide any benefits with respect to any defined contribution plan.

 

6.3.          Spendthrift Provision.  No
Participating Employee, surviving spouse, joint or contingent annuitant or
beneficiary shall have the power to transmit, assign, alienate, dispose of,
pledge or encumber any benefit payable under this Plan before its actual
payment to such person.

 

11

 

The PRC shall not
recognize any such effort to convey any interest under this Plan.  No benefit payable under this Plan shall be
subject to attachment, garnishment, execution following judgment or other legal
process before actual payment to such person.

 

6.4.          Errors in Computations.  Alliant shall not be liable or responsible for any error in the
computation of any benefit payable to or with respect to any Participating
Employee resulting from any misstatement of fact made by the Participating
Employee or by or on behalf of any survivor to whom such benefit shall be
payable, directly or indirectly, to Alliant, and used by Alliant in determining
the benefit.  Alliant shall not be
obligated or required to increase the benefit payable to or with respect to such
Participating Employee which, on discovery of the misstatement, is found to be
understated as a result of such misstatement of the Participating
Employee.  However, the benefit of any
Participating Employee which is overstated by reason of any such misstatement
or any other reason shall be reduced to the amount appropriate in view of the
truth (and to recover any prior overpayment).

 

6.5.          Correction of Errors.  If any Participating Employee in any written statement required
under the Plan document shall misstate such Participating Employee’s age or the
age of any person upon whose survival the payment of any benefit in respect of
such Participating Employee is contingent or any other fact the misstatement of
which would affect the amount of a benefit payable hereunder, the accrual of
benefits in respect of such Participating Employee shall not be invalidated,
but the amount of the benefit to be available with respect to such
Participating Employee will be adjusted retroactively to the amount which would
have been payable if such fact or facts had not been misstated.  It is recognized that errors may occur
during the administration of the Plan which may result in incorrect statement
or payment of benefits.  If an administrative
error occurs, the amount of benefits available to such Participating Employee
shall be the correct amount determined under the Plan document and future
benefits to such Participating Employee shall be adjusted to reflect any prior
mistakes under rules adopted by Alliant. 
If no further benefits are payable under the Plan, Alliant will take
whatever steps it determines are reasonable to collect such overpayments on
behalf of the Plan.  In no event will
the Plan be liable to pay any greater benefit in respect of any Participating
Employee than that which would have been payable on the basis of the truth and
the provisions of this Plan document.

 

SECTION
7

 

FORFEITURE OF BENEFITS

 

All unpaid benefits under
this Plan shall be permanently forfeited upon the determination by Alliant that
the Participating Employee, either before or after termination of employment:

 

(a)                                  engaged
in a criminal or fraudulent conduct resulting in material harm to Alliant or an
affiliate of Alliant; or

 

12

 

(b)                                 made
an unauthorized disclosure to any competitor of any material confidential
information, trade information or trade secrets of Alliant or an affiliate of
Alliant; or

 

(c)                                  provided
Alliant or an affiliate of Alliant with materially false reports concerning his
or her business interests or employment; or

 

(d)                                 made
materially false representations which are relied upon by Alliant or an
affiliate of Alliant in furnishing information to an affiliate, partner,
shareholders, accountants, auditor, a stock exchange, the Securities and
Exchange Commission or any regulatory or governmental agency; or

 

(e)                                  maintained
an undisclosed, unauthorized and material conflict of interest in the discharge
of the duties owed by him or her to Alliant or an affiliate of Alliant; or

 

(f)                                    engaged
in conduct causing a serious violation of state and federal law by Alliant or
an affiliate of Alliant; or

 

(g)                                 engaged
in theft of assets or funds of Alliant or an affiliate of Alliant; or

 

(h)                                 has
been convicted of any crime which directly or indirectly arose out of his her
employment relationship with Alliant or an affiliate of Alliant or materially
affected his or her ability to discharge the duties of his or her employment
with Alliant or an affiliate of Alliant; or

 

(i)                                     engaged
during his or her employment or within two (2) years after termination of
employment in any employment with a competitor, or engaged in any activity in
competition with Alliant, without the consent of Alliant.

 

SECTION
8

 

DETERMINATIONS AND CLAIMS PROCEDURE

 

8.1.          Determinations.  The Board of
Directors and the PRC shall make such determinations as may be required from
time to time in the administration of the Plan.  The Board of Directors and the PRC shall have the discretionary
authority and responsibility to interpret and construe the Plan and to
determine all factual and legal questions under the Plan, including but not
limited to the entitlement of Participating Employees and Beneficiaries, and
the amounts of their respective interests. 
Each interested party may act and rely upon all information reported to them
hereunder and need not inquire into the accuracy thereof, nor be charged with
any notice to the contrary.

 

13

 

8.2.          Claims Procedure.  Until
modified by the PRC, the claims procedure set forth in this Section 8
shall be the mandatory claims and review procedure for the resolution of
disputes and disposition of claims filed under the Plan.

 

8.2.1.       Original
Claim.  Any person may,
if he or she so desires, file with the PRC a written claim for benefits under
this Plan.  Within ninety (90) days
after the filing of such a claim, the PRC shall notify the claimant in writing
whether the claim is upheld or denied in whole or in part or shall furnish the
claimant a written notice describing specific special circumstances requiring a
specified amount of additional time (but not more than one hundred
eighty (180) days from the date the claim was filed) to reach a decision
on the claim.  If the claim is denied in
whole or in part, the PRC shall state in writing:

 

(a)                                  the
specific reasons for the denial;

 

(b)                                 the
specific references to the pertinent provisions of the Plan on which the denial
is based;

 

(c)                                  a
description of any additional material or information necessary for the
claimant to perfect the claim and an explanation of why such material or
information is necessary; and

 

(d)                                 an
explanation of the claims review procedure set forth in this section.

 

8.2.2.       Review of
Denied Claim.  Within
sixty (60) days after receipt of notice that the claim has been denied in
whole or in part, the claimant may file with the Board of Directors a written
request for a review and may, in conjunction therewith, submit written issues
and comments.  Within sixty (60) days after the filing of such a
request for review, the Board of Directors shall notify the claimant in writing
whether, upon review, the claim was upheld or denied in whole or in part or
shall furnish the claimant a written notice describing specific special
circumstances requiring a specified amount of additional time (but not more
than one hundred twenty (120) days from the date the request for review
was filed) to reach a decision on the request for review.

 

8.2.3.       General Rules.

 

(a)                                  No
inquiry or question shall be deemed to be a claim or a request for a review of
a denied claim unless made in accordance with the claims procedure.  The PRC may require that any claim for
benefits and any request for a review of a denied claim be filed on forms to be
furnished by the PRC upon request.

 

(b)                                 All
decisions on original claims shall be made by the PRC and all decisions on
requests for a review of denied claims shall be made by the Board of Directors.

 

14

 

(c)                                  the
PRC and the Board of Directors may, in their discretion, hold one or more
hearings on a claim or a request for a review of a denied claim.

 

(d)                                 A
claimant may be represented by a lawyer or other representative (at the
claimant’s own expense), but the PRC and the Board of Directors reserves the
right to require the claimant to furnish written authorization.  A claimant’s representative shall be
entitled, upon request, to copies of all notices given to the claimant.

 

(e)                                  The
decision of the PRC on a claim and a decision of the Board of Directors on a
request for a review of a denied claim shall be served on the claimant in
writing.  If a decision or notice is not
received by a claimant within the time specified, the claim or request for a
review of a denied claim shall be deemed to have been denied.

 

(f)                                    Prior
to filing a claim or a request for a review of a denied claim, the claimant or
his or her representative shall have a reasonable opportunity to review a copy
of the Plan and all other pertinent documents in the possession of the PRC and
the Board of Directors.

 

(g)                                 The
PRC and the Board of Directors may permanently or temporarily delegate its
responsibilities under this claims procedure to an individual or a committee of
individuals.

 

8.3.          Limitations and Exhaustion.

 

8.3.1.       Limitations.  No claim shall be considered under these
administrative procedures unless it is filed with the PRC within one (1)
year after the claimant knew (or reasonably should have known) of the principal
facts on which the claim is based. 
Every untimely claim shall be denied by the PRC without regard to the
merits of the claim.  No legal action
(whether arising under section 502 or section 510 of ERISA or under
any other statute or non-statutory law) may be brought by any claimant on any
matter pertaining to this Plan unless the legal action is commenced in the
proper forum before the earlier of:

 

(a)                                  two (2)
years after the claimant knew (or reasonably should have known) of the
principal facts on which the claim is based, or

 

(b)                                 ninety (90)
days after the claimant has exhausted these administrative procedures.

 

Knowledge of all facts
that a Participating Employee knew (or reasonably should have known) shall be
imputed to each claimant who is or claims to be a Beneficiary of the
Participating Employee (or otherwise claims to derive an entitlement by reference
to a Participating Employee) for the purpose of applying the one (1) year
and two (2) year periods.

 

15

 

8.3.2.       Exhaustion
Required.  The exhaustion
of these administrative procedures is mandatory for resolving every claim and
dispute arising under this Plan.  As to
such claims and disputes:

 

(a)                                  no
claimant shall be permitted to commence any legal action relating to any such
claim or dispute (whether arising under section 502 or section 510 of
ERISA or under any other statute or non-statutory law) unless a timely claim
has been filed under these administrative procedures and these administrative
procedures have been exhausted; and

 

(b)                                 in
any such legal action all explicit and implicit determinations by the PRC and
the Board of Directors (including, but not limited to, determinations as to
whether the claim was timely filed) shall be afforded the maximum deference
permitted by law.

 

SECTION 9

 

PLAN ADMINISTRATION

 

9.1.          Officers. 
Except as hereinafter provided, functions generally assigned to Alliant
shall be discharged by its officers or delegated and allocated as provided
herein.

 

9.2.          Chief
Executive Officer.  Except as hereinafter provided, the CEO may
delegate or redelegate and allocate and reallocate to one or more persons or to
a committee of persons jointly or severally, and whether or not such persons
are directors, officers or employees, such functions assigned to Alliant
generally hereunder as the CEO may from time to time deem advisable.

 

9.3.          Board of
Directors.  Notwithstanding the foregoing, the Board of
Directors shall have the exclusive authority, which may not be delegated, to
amend the Plan, to terminate this Plan and to determine eligibility of
Section 16 Officers to participate in this Plan under Section 3.

 

9.4.          Pension
and Retirement Committee.  The Alliant Pension and Retirement Committee
(the “PRC”) shall:

 

(a)                                  keep
a record of all its proceedings and acts and keep all books of account, records
and other data as may be necessary for the proper administration of the Plan;
notify Alliant of any action taken by the PRC and, when required, notify any
other interested person or persons;

 

(b)                                 determine
from the records of Alliant the compensation, status and other facts regarding
Participating Employees and other employees;

 

(c)                                  prescribe
forms to be used for distributions, notifications, etc., as may be required in
the administration of the Plan;

 

16

 

(d)                                 set
up such rules, applicable to all Participating Employees similarly situated, as
are deemed necessary to carry out the terms of this Plan;

 

(e)                                  perform
all other acts reasonably necessary for administering the Plan and carrying out
the provisions of this Plan and performing the duties imposed on it by the
Board of Directors;

 

(f)                                    resolve
all questions of administration of the Plan not specifically referred to in
this section;

 

(g)                                 in
accordance with regulations of the Secretary of Labor, provide adequate notice
in writing to any claimant whose claim for benefits under the Plan has been
denied, setting forth the specific reasons for such denial, written in a manner
calculated to be understood by the claimant; and

 

(h)                                 delegate
or redelegate to one or more persons, jointly or severally, and whether or not
such persons are members of the PRC or employees of any Employer, such
functions assigned to the PRC hereunder as it may from time to time deem
advisable.

 

If there shall at any
time be three (3) or more members of the PRC serving hereunder who are
qualified to perform a particular act, the same may be performed, on behalf of
all, by a majority of those qualified, with or without the concurrence of the
minority.  No person who failed to join
or concur in such act shall be held liable for the consequences thereof, except
to the extent that liability is imposed under ERISA.

 

9.5.          Delegation. 
The Board of Directors and the members of the Committee shall not be
liable for an act or omission of another person with regard to a responsibility
that has been allocated to or delegated to such other person pursuant to the
terms of the Plan or pursuant to procedures set forth in the Plan Statement.

 

9.6.          Conflict of
Interest.  If any individual to whom authority has been
delegated or redelegated hereunder shall also be a Participating Employee in
this Plan, such Participating Employee shall have no authority with respect to
any matter specially affecting such Participating Employee’s individual rights
hereunder or the interest of a person superior to him or her in the
organization (as distinguished from the rights of all Participating Employees
and Beneficiaries or a broad class of Participating Employees and
Beneficiaries), all such authority being reserved exclusively to other
individuals as the case may be, to the exclusion of such Participating
Employee, and such Participating Employee shall act only in such Participating
Employee’s individual capacity in connection with any such matter.

 

9.7.          Administrator.  Alliant shall be the administrator for purposes
of section 3(16)(A) of ERISA.

 

17

 

9.8.          Service of
Process.  In the absence
of any designation to the contrary by the PRC, the General Counsel of Alliant
is designated as the appropriate and exclusive agent for the receipt of process
directed to this Plan in any legal proceeding, including arbitration, involving
this Plan.

 

9.9.          Expenses. 
All expenses of administering this Plan shall be borne by Alliant.

 

9.10.        Tax Withholding. 
Alliant shall withhold the amount of any federal, state or local income
tax or other tax required to be withheld by Alliant under applicable law with
respect to any amount payable under this Plan.

 

9.11.        Certifications. 
Information to be supplied or written notices to be made or consents to
be given by the Board of Directors or the PRC pursuant to any provision of this
Plan may be signed in the name of the Board of Directors or the PRC by any
officer who has been authorized to make such certification or to give such
notices or consents.

 

9.12.        Rules and Regulations.  Any rule not in conflict or at variance with the provisions
hereof may be adopted by the PRC.

 

SECTION
10

 

CONSTRUCTION

 

10.1.        Defined Terms.  Words and phrases used in this Plan with
initial capital letters, which are defined in the applicable Pension Plans’
documents and which are not separately defined in this Plan shall have the same
meaning ascribed to them in the applicable Pension Plans’ documents unless in
the context in which they are used it would be clearly inappropriate to do so.

 

10.2.        ERISA Status.  This Plan is maintained with the
understanding that it is a nonqualified deferred compensation plan for the
benefit of a select group of management or highly compensated employees within
the meaning of section 201(2), section 301(3) and
section 401(a)(1) of ERISA.  Each
provision shall be interpreted and administered accordingly.  If any individually contracted supplemental
retirement arrangement with any Section 16 Officer is deemed to be covered
by ERISA, such arrangement shall be included in the Plan but only to the extent
that such inclusion is necessary to comply with ERISA.

 

10.3.        IRC Status.  This Plan is intended to be a nonqualified
deferred compensation arrangement.  The
rules of section 401(a) et. seq.
of the Code shall not apply to this Plan. 
The rules of section 3121(v) and section 3306(r)(2) of the
Code shall apply to this Plan.

 

10.4.        Effect on Other Plans.  This Plan shall not alter, enlarge or diminish any person’s
employment rights or obligations or rights or obligations under the Pension
Plans or any other plan.  It is
specifically contemplated that the Pension Plans will, from time to time, be
amended and possibly terminated.  All
such amendments and termination shall be given effect under this Plan (it being
expressly intended that this Plan shall not lock in the benefit structures of
the

 

18

 

Pension Plans as
they exist at the adoption of this Plan or upon the commencement of
participation, or commencement of benefits by any Participating Employee).

 

10.5.        Disqualification. 
Notwithstanding any other provision of this Plan or any election or
designation made under the Plan, any individual who feloniously and
intentionally kills a Participating Employee shall be deemed for all purposes
of this Plan and all elections and designations made under this Plan to have
died before such Participating Employee. 
A final judgment of conviction of felonious and intentional killing is
conclusive for this purpose.  In the
absence of a conviction of felonious and intentional killing, the PRC shall
determine whether the killing was felonious and intentional for this purpose.

 

10.6.        Rules of Document Construction.  Whenever appropriate, words used herein in
the singular may be read in the plural, or words used herein in the plural may
be read in the singular; the masculine may include the feminine; and the words
“hereof,” “herein” or “hereunder” or other similar compounds of the word “here”
shall mean and refer to the entire Plan and not to any particular paragraph or
Section of this Plan unless the context clearly indicates to the contrary.  The titles given to the various Sections of
this Plan are inserted for convenience of reference only and are not part of
this Plan, and they shall not be considered in determining the purpose, meaning
or intent of any provision hereof.

 

10.7.        References to Laws.  Any
reference in this Plan to a statute or regulation shall be considered also to
mean and refer to any subsequent amendment or replacement of that statute or
regulation.

 

10.8.        Effect on Employment.  Neither the terms of this Plan nor the benefits hereunder nor the
continuance thereof shall be a term of the employment of any employee.  Except as provided in Section 6.1, Alliant
shall not be obliged to continue the Plan. 
The terms of this Plan shall not give any employee the right to be
retained in the employment of any Employer.

 

10.9.        Choice of Law.  This instrument has been executed and
delivered in the State of Minnesota and has been drawn in conformity to the
laws of that State and shall, except to the extent that federal law is
controlling, be construed and enforced in accordance with the laws of the State
of Minnesota.

 

This Plan was adopted by
Board of Directors of Alliant Techsystems Inc. on this 5th day of August,
2003.

 

	
   

  	
   

  	
  ALLIANT TECHSYSTEMS
  INC.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Ann D. Davidson

  	
   

  
	
   

  	
   

  	
   

  	
  Its:

  	
  Vice President and General Counsel

  	
   

  
							

 

19

 

APPENDIX A

 

ALLIANT TECHSYSTEMS INC.

SUPPLEMENTARY EXECUTIVE RETIREMENT PLAN

FOR CECP PARTICIPANTS

 

ARTICLE
I

 

DEFINITIONS

 

1.1.          Act.  The Employee Retirement Income Security Act
of 1974, as from time to time amended.

 

1.2.          Base
Plan.  The Alliant
Techsystems Inc. Retirement Plan, as from time to time amended.

 

1.3.          Code.  The Internal Revenue Code of 1986, as from
time to time amended.

 

1.4.          Corporate
Executive Compensation Plan (CECP). 
An incentive compensation plan maintained by Honeywell to provide
incentive compensation for a select group of management or highly compensated
employees, as from time to time amended.

 

1.5.          Early
Retirement.  Retirement by a
Participant under his or her Base Plan, which is defined as the termination of
employment on or after his or her 55th birthday and after he or she has been
credited with 10 or more years of “Credited Service for Benefit Accrual,” under
the Base Plan.

 

1.6.          Earnings
Limitation.  The maximum
amount of compensation of a Participant and his or her family members permitted
to be taken into account under the Base Plan pursuant to
Section 401(a)(17) of the Code.

 

1.7.          Effective
Date.  The original effective
date of this Plan was January 1, 1985.

 

1.8.          Honeywell.  Honeywell Inc., a Delaware corporation.

 

1.9.          Normal
Retirement.  Retirement by a
Participant on or after his or her “Normal Retirement Date” under his or her
Base Plan.  “Normal Retirement Date” is
the last day of the calendar month in which a Participant reaches age 65.

 

1.10.        Participant.  An employee of Alliant Techsystems Inc. (“Alliant”)
who is a participant in the Base Plan on or after January 1, 1985, whose
earnings are in excess of the Earnings Limitation under the Base Plan.  No controlling shareholder or independent
contractor shall be a Participant.

 

A-1

 

1.11.        Plan.  The Alliant Techsystems Inc. Supplementary
Executive Retirement Plan for CECP Participants.  No controlling shareholder or independent contractor shall be a
Participant.

 

1.12.        Total and
Permanent Disability.  The
disability of a Participant whereby such Participant is wholly disabled by
bodily injury or disease and will be permanently, continuously and wholly
prevented thereby for life from engaging in any occupation or employment for
wage or profit.

 

ARTICLE II

 

BENEFITS

 

2.1.          Benefit.  Upon termination of employment, a
Participant shall be eligible for a benefit in an amount equal to his or her
benefit under his or her Base Plan computed by including under the definition
of “Earnings” for purposes of arriving at “Final Average Earnings” under the
Base Plan the amount of any deferred incentive award in the year in which the
award would otherwise have been paid by the Honeywell Inc. Corporate Executive
Compensation Plan, less the amount of his or her benefit determined
under his or her Base Plan without including under the definition of “Earnings”
for purposes of arriving at “Final Average Earnings” under the Base Plan the
amount of any deferred incentive award in the year in which the award would
otherwise have been paid by the Honeywell Inc. Corporate Executive Compensation
Plan.

 

2.2.          Pre-retirement
Surviving Spouse Benefit. 
Upon the death of a married Participant who has not yet retired under
the Base Plan, his or her surviving spouse to whom he or she was formally
married on the date of his or her death shall be eligible for a benefit in an
amount equal to such surviving spouse’s “Pre-retirement Surviving Spouse
Benefit” under the Participant’s Base Plan computed by including under the
definition of “Earnings” for purposes of arriving at “Final Average Earnings”
under the Base Plan the amount of any deferred incentive award in the year in
which the award would otherwise have been paid by the Corporate Executive
Compensation Plan, less the amount of the annual “Pre-retirement
Surviving Spouse Benefit” determined under the deceased Participant’s Base Plan
without such adjustments to “Earnings” for purposes of arriving at “Final
Average Earnings.”

 

ARTICLE III

 

PAYMENT OF BENEFITS

 

A benefit under the Plan
shall be paid in the form of the benefit paid with respect to the Participant
under his or her Base Plan.  Any
election, designation of a beneficiary(ies) or contingent annuitant(s), or
revocation in effect under the Participant’s Base Plan shall be in effect under
the Plan.

 

A-2

 

ARTICLE IV

 

GENERAL CONDITIONS

 

All general provisions of
the Alliant Techsystems Inc. Supplemental Executive Retirement Plan shall apply
hereunder.

 

A-3

 

APPENDIX
B

 

ALLIANT TECHSYSTEMS INC.

SUPPLEMENTARY EXECUTIVE RETIREMENT PLAN

FOR BENEFITS IN EXCESS OF LIMITS UNDER

TAX REFORM ACT OF 1986

 

 

ARTICLE I

 

DEFINITIONS

 

1.1.          Act.  The Tax Reform Act of 1986.

 

1.2.          Base
Plan.  The Alliant Techsystems
Inc. Retirement Plan, as from time to time amended.

 

1.3.          Code.  The Internal Revenue Code of 1986, as from
time to time amended.

 

1.4.          Early
Retirement.  Retirement by a
Participant under his or her Base Plan, which is defined as the termination of
employment on or after his or her 55th birthday and after he or she has been
credited with 10 or more years of “Credited Service for Benefit Accrual,” under
the Base Plan.

 

1.5.          Earnings
Limitation.  The maximum
amount of compensation of a Participant and his or her family members permitted
to be taken into account under the Base Plan pursuant to
Section 401(a)(17) of the Code.

 

1.6.          Effective
Date.  The original effective
date of this Plan was July 1, 1989.

 

1.7.          Honeywell.  Honeywell Inc., a Delaware corporation.

 

1.8.          Normal
Retirement.  Retirement by a
Participant on or after his or her “Normal Retirement Date” under his or her
Base Plan.  “Normal Retirement Date” is
the last day of the calendar month in which a Participant reaches age 65.

 

1.9.          Participant.  An employee of Alliant Techsystems Inc.
(“Alliant”) who is a participant in the Base Plan on or after July 1,
1989, whose accrued benefit under the Base Plan, as a highly compensated
employee as defined under section 414(q)(1)(A) or (B) of the Code as in
effect on July 1, 1989, was frozen as of June 31, 1989, in compliance
with IRS Notice 88-131, Alternative IID. 
No controlling shareholder or independent contractor shall be a
Participant.

 

1.10.        Plan.  The Alliant Techsystems Inc. Supplementary
Executive Retirement Plan for Benefits in Excess of Limits under Tax Reform Act
of 1986.  No controlling shareholder or
independent contractor shall be a Participant.

 

B-1

 

1.11.        Total and
Permanent Disability.  The
disability of a Participant whereby such Participant is wholly disabled by
bodily injury or disease and will be permanently, continuously and wholly
prevented thereby for life from engaging in any occupation or employment for
wage or profit.

 

1.12.        TRA
‘86 Amendment Date.  The date
the Honeywell Retirement Benefit Plan was amended to comply with the Act.

 

ARTICLE II

 

BENEFITS

 

2.1.          Benefit.  Upon termination of employment, a
Participant shall be eligible for a benefit, if any, computed:

 

(a)                                  by
including the greater of (i) the Participant’s benefit under the Base Plan
computed on the TRA ‘86 Amendment Date without regard to the Base Plan’s
amendment in compliance with IRS Notice 88-131, Alternative IID, which
served to freeze the accrued benefit of highly compensated participants
pursuant to the provisions of the Base Plan, or (ii) the Participant’s benefit
under the Base Plan as amended to comply with the Act,

 

(b)                                 by
including under the definition of “Earnings” for the purposes of arriving at
“Final Average Earnings” under the Base Plan the Participant’s “Earnings” under
the Base Plan which are in excess of the Earnings Limitation,

 

(c)                                  by
including under the definition of “Earnings” for purposes of arriving at “Final
Average Earnings” under the Base Plan the amount of any deferred incentive
compensation award in the year in which the award would have otherwise been
paid by the Honeywell Inc. Corporate Executive Compensation Plan,

 

(d)                                 without
regard to the provisions of such Base Plan limiting the maximum benefit payable
thereunder to the maximum benefit permitted under the provision of section 415
of the Code in a pension plan qualifying under section 401 of the Code,

 

and then subtracting from
the amount determined above, the following: (i) the amount of the Participant’s
benefit determined under the Base Plan, as amended to comply with the Act; (ii)
the amount the Participant’s benefit provided under the Alliant Techsystems
Inc. Supplementary Executive Retirement Plan for Compensation in Excess of $200,000;
(iii) the amount of the Participant’s benefit provided under the Alliant
Techsystems Inc. Supplementary Executive

 

B-2

 

Retirement Plan for CECP
Participants; and (iv) the amount of the Participant’s benefit provided under
the Alliant Techsystems Inc. Supplementary Retirement Plan.

 

2.2.          Pre-retirement
Surviving Spouse Benefit. 
Upon the death of a married Participant who has not yet retired under
the Base Plan, his or her surviving spouse to whom he or she was formally
married on the date of his or her death shall be eligible for a benefit in an
amount, if any, computed:

 

(a)                                  by
including the greater of (i) the surviving spouse’s “Pre-retirement Surviving
Spouse Benefit” under the Base Plan computed on the TRA ‘86 Amendment Date
without regard to the Base Plan’s amendment in compliance with IRS
Notice 88-131, Alternative IID, or (ii) the surviving spouse’s
“Pre-Retirement Surviving Spouse Benefit” under the Base Plan as amended to
comply with the Act,

 

(b)                                 by
including under the definition of “Earnings” for the purposes of arriving at
“Final Average Earnings” under the Base Plan the deceased Participant’s
“Earnings” under the Base Plan which are in excess of the Earnings Limitation,

 

(c)                                  by
including under the definition of “Earnings” for purposes of arriving at “Final
Average Earnings” under the Base Plan the amount of any deferred incentive
compensation award in the year in which the award would have otherwise been
paid to the deceased Participant by the Honeywell Inc. Corporate Executive
Compensation Plan,

 

(d)                                 without
regard to the provisions of such Base Plan limiting the maximum benefit payable
thereunder to the maximum benefit permitted under the provision of section 415
of the Code in a pension plan qualifying under section 401 of the Code,

 

and then subtracting from
the amount determined above, the following: (i) the amount of the surviving
spouse’s “Pre-retirement Surviving Spouse Benefit” determined under the Base
Plan, as amended to comply with the Act; (ii) the amount the surviving spouse’s
“Pre-retirement Surviving Spouse Benefit” provided under Alliant Techsystems
Inc. Supplementary Executive Retirement Plan for Compensation in Excess of
$200,000; (iii) the amount of the surviving spouse’s “Pre-retirement Surviving
Spouse Benefit” provided under the Alliant Techsystems Inc. Supplementary
Executive Retirement Plan for CECP Participants; and (iv) the amount of the
surviving spouse’s “Pre-retirement Surviving Spouse Benefit” provided under the
Alliant Techsystems Inc. Supplementary Retirement Plan.

 

B-3

 

ARTICLE III

 

PAYMENT OF BENEFITS

 

A benefit under the Plan
shall be paid in the form of the benefit paid with respect to the Participant
under his or her Base Plan.  Any
election, designation of a beneficiary(ies) or contingent annuitant(s), or
revocation in effect under the Participant’s Base Plan shall be in effect under
the Plan.

 

ARTICLE IV

 

GENERAL CONDITIONS

 

All general provisions of
the Alliant Techsystems Inc. Supplemental Executive Retirement Plan shall apply
hereunder.

 

B-4

 

APPENDIX
C

 

ALLIANT TECHSYSTEMS INC.

DEFERRED COMPENSATION PLAN

 

Alliant adopted, pursuant
to the Hercules Acquisition, the Plan known as the “Alliant Techsystems Inc.
Deferred Compensation Plan” (the “Deferred Compensation Plan”) to provide
benefits to certain employees acquired from Hercules Inc.  The plan was adopted as a frozen plan to
provide only identified benefits accrued prior to the Hercules
Acquisition.  That plan is memorialized
in a plan document entitled “Hercules Deferred Compensation Plan.”  This Appendix C lists the employees who
are entitled to benefits under the Deferred Compensation Plan upon termination
of employment from Alliant and the amount of each such employee’s accrued
benefit as of December 31, 1994.

 

	
  John Crane, SSN XXX – XX – XXXX

  	
   

  	
  $

  	
  2,656.00

  	
   

  
	
  James E. Woolwine, SSN XXX – XX – XXXX

  	
   

  	
  5,003.65

  	
   

  

 

These benefits will
accrue interest at the rate of 2.25% for the calendar quarter ending
March 31, 1995, and for each calendar quarter thereafter the amount of
interest shall be determined by multiplying the account balance on the last
business day of each calendar quarter by an amount equal to one-fourth of the
prime rate of interest as reported in The
Wall Street Journal, Midwest Edition, plus one percent (1%) on the
last business day of the calendar quarter. 
The form of payment shall be a single lump sum payable as soon as
administratively feasible after the employee’s termination of employment;
provided, however, that the PRC may unilaterally delay payment for up to 12
months (in which case the amount will continue to be credited with interest on
a quarterly basis).  Notwithstanding the
foregoing, the benefit may be paid in a form other than a single lump sum if
such alternative form is agreed to in writing by both Alliant and the
Participating Employee.

 

C-1

 

APPENDIX
D

 

CORDANT TECHNOLOGIES INC.

SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

 

Alliant adopted, pursuant
to the Thiokol Acquisition, the Plan known as the “Cordant Technologies Inc.
Supplemental Executive Retirement Plan” (the “Cordant SERP”) to provide
benefits to certain employees acquired from Alcoa, Inc.  The plan was adopted as a frozen plan to
provide only identified benefits accrued prior to the Thiokol Acquisition.  That plan is memorialized in a plan document
entitled “CORDANT TECHNOLOGIES INC. SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN Amended
and Restated Effective July 22, 1999.” 
This Appendix D lists the remaining employee who is currently
receiving benefits under the Cordant SERP and the monthly amount of his
benefit.

 

 

	
  Joseph Lombardo, SSN
  XXX – XX – XXXX

  	
   

  	
  $7,468.15 per month in
  the form of a joint & 50% surviving spouse annuity

  

 

D-1

 

APPENDIX
E

 

INDIVIDUAL EMPLOYMENT
AGREEMENTS

 

A Participating
Employee’s benefit under this Plan shall be determined in accordance with
Section 4 of this Plan and the terms of the applicable Pension Plan except
as adjusted by any employment agreements between Alliant and a Participating
Employee.  This Appendix E lists
the Participating Employees who are entitled to benefits under this Plan as
adjusted pursuant to the terms of their individual employment agreements.

 

 

	
   

  	
  Participating Employee

  	
   

  	
  Benefit
  Adjusted Pursuant To

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Daniel J. Murphy, Jr.

  	
   

  	
  Employment Agreement
  dated as of February 1, 2004.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Paul David Miller

  	
   

  	
  Employment Agreement
  dated January 1, 1999, as amended by a First Amendment to Employment
  Agreement dated as of July 20, 2000, and as amended by an amendment to
  Employment Agreement dated March 31, 2003

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Richard Jowett

  	
   

  	
  Special Agreement dated
  August 1, 2001

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Anthony Fabianio

  	
   

  	
  Employment Agreement
  dated May 2, 1995

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Ron Peterson

  	
   

  	
  Employment Agreement
  dated March 1, 1995

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Paul Ross

  	
   

  	
  Pension and
  Compensation Committee resolution dated March 19, 2002

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Gerald Smith

  	
   

  	
  Memo dated July 1,
  2001

  

 

E-1Exhibit 10.8

 

ALLIANT
TECHSYSTEMS INC.

MANAGEMENT
COMPENSATION PLAN

(as
restated effective April 1, 2002)

 

Article I.  Establishment and Purpose of Plan

 

Alliant Techsystems Inc., a Delaware corporation (the “Company”),
previously established the Alliant Techsystems Inc. Management Compensation
Plan (the “Plan”) effective October 1, 1990, for the benefit of its
management employees.  The Plan has been
amended from time to time.  The Company
hereby amends and restates the Plan in its entirety as set forth herein,
effective April 1, 2002 (the “Restatement Effective Date”), subject to the
approval of the stockholder of the Company, to incorporate such amendments and
to clarify its terms.

 

The purpose of the Plan is to provide incentive compensation to
management employees in accordance with the Company’s “pay for performance”
philosophy by directly relating individual, unit and Company-wide performance
to compensation in a manner that is equitable internally and competitive with
similarly situated companies.

 

The Plan provides for annual incentive payments to management employees
based upon the achievement of pre-established performance goals.  Incentive compensation payable under the
Plan is intended to be deductible by the Company in accordance with
Section 162(m) of the Internal Revenue Code of 1986, as amended (the
“Code”).

 

Article II.  Definitions

 

For purposes of the Plan, unless the context otherwise requires, the
following terms shall have the meaning set forth below.

 

2.1                                 “Award”
means an award of incentive compensation under the Plan to a Participant in
accordance with the terms set forth herein.

 

2.2                                 “Award
Percentage,” for an Incentive Unit for any Performance Period means the
percentage derived from dividing the dollar amount of the Incentive Unit’s Earned
Incentive Fund by the Incentive Unit’s Target Incentive Fund for such
Performance Period.  In general, an
Incentive Unit’s Award Percentage may not exceed two hundred percent (200%).  However, the Committee in its discretion may
approve an Award Percentage of up to three hundred percent (300%).

 

2.3                                 “Base
Salary” of a Participant for a Performance Period, means the Participant’s
basic annual salary, exclusive of any bonus, incentive plan payment, pension or
other Company-paid benefit and all other items of extraordinary compensation,
but shall include for purposes of this Plan: 
(a) the amount of any reduction in Base Salary to which a Participant
has agreed as part of any plan of the Company to use the amount of such
reduction to purchase benefits under a cafeteria plan under Code
Section 125, a transportation fringe benefit plan under Code
Section 132(f), or in connection with any qualified cash or deferred
arrangement under Code Section

 

 

401(k); (b) payments made to the Participant under the Company’s salary
continuance plan for absence due to illness, injury, or approved medical leave
of absence; and (c) any Participant payments by salary reduction or its
equivalent to a Company-sponsored nonqualified deferred compensation plan.

 

2.4                                 “Board”
means the Board of Directors of the Company as constituted at the relevant
time.

 

2.5                                 “CEO”
means the Company’s Chief Executive Officer at the relevant time.

 

2.6                                 “Change
Event” means:

 

(a)                                  the acquisition after
the Restatement Effective Date by any “person” or group of persons (a
“Person”), as such terms are used in Section 13(d) and 14(d) of the
Exchange Act (other than the Company or a Subsidiary or any Company employee
benefit plan (including its trustee)) of “beneficial ownership” (as defined in
Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of
the Company directly or indirectly representing fifteen percent (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 (5) or fewer shareholders in a transaction or transactions approved
in advance by the Board);

 

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

 

(c)                                  the individuals who,
as of the Restatement Effective Date, are members of the Board (the “Incumbent
Board”), 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.

 

2.7                                 “Change
of Control” means:

 

(a)                                  the acquisition by
any Person (other than the Company or a Subsidiary, or any Company employee
benefit plan (including its trustee)) of “beneficial ownership” (as defined in
Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of
the Company representing, directly or indirectly, more than fifty percent (50%)
of the total number of shares of the Company’s then outstanding Voting
Securities;

 

(b)                                 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

 

2

 

owners of the total number of shares of the Company’s outstanding
Voting Securities immediately prior to both: 
(i) such Business Combination; and (ii) any Change Event occurring within
twelve (12) months prior to such Business Combination, beneficially own,
directly or indirectly, more than fifty percent (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

 

(c)                                  any other
circumstances (whether or not following a “Change Event”) which the Board
determines to be a Change of 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 of 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.

 

2.8                                 “Code”
means the Internal Revenue Code of 1986, as amended.

 

2.9                                 “Committee”
means the Personnel and Compensation Committee of the Board, as constituted at
the relevant time, which shall consist of two or more “outside directors”
within the meaning of Section 162(m) of the Code.

 

2.10                           “Company”
means Alliant Techsystems Inc., a Delaware corporation.

 

2.11                           “Corporate
Management” means the Company’s Chief Executive Officer, Chief Financial
Officer, Chief People Officer, and any other individual to whom these officers
may delegate responsibilities under the Plan from time to time.

 

2.12                           “Disability
or Disabled,” with respect to a Participant, means that the Participant
satisfies the requirements to receive disability benefits under the
Company-sponsored long-term disability plan in which the Participant
participates without regard to any waiting periods.  A Participant shall not be considered to be “Disabled” unless the
Participant furnishes proof of the Disability to the Company in such form and
manner as the Company may require.

 

2.13                           “Early
Retirement Date,” of a Participant, means the date (prior to the date on
which the Participant reaches his or her Normal Retirement Date), on which the
Participant has satisfied all of the requirements to begin receiving benefits
under the Company-sponsored qualified defined benefit plan in which he or she
participates.

 

3

 

2.14                           “Earned
Incentive Fund,” of an Incentive Unit for a Performance Period is the
dollar amount determined by applying the Incentive Unit’s weighted average
organizational performance percentage, using the organizational weightings
described in Section 5.1(b) and the achievement levels for the
Organizational Performance Goals described in Section 5.1(c) and (d), to
the Incentive Unit’s Target Incentive Fund.

 

2.15                           “Eligible
Employee,” for any Performance Period, means an employee of the Company
who, during such period, regularly and directly makes or influences policy and
operational decisions of the Company that significantly affect the financial
results and strategic direction of the Company, as determined by the CEO
according to guidelines established by the Committee.  The designation of an employee as an Eligible Employee for any
Performance Period shall be subject to final approval by the Committee.

 

2.16                           “Exchange
Act” means the Securities Exchange Act of 1934.

 

2.17                           “Fair
Market Value,” of a share of Stock as of any date means the closing price
of the Stock as reported on the New York Stock Exchange Composite Tape for such
date, or if no such reported sale of the Stock shall have occurred on such
date, on the next preceding date on which there was such a reported sale.

 

2.18                           “Fiscal
Year” means the Company’s fiscal year, i.e., April 1 through March 31.

 

2.19                           “Incentive
Group,” with respect to an Incentive Unit, means the business group, if
any, of which the Incentive Unit is a part, as specified by the Committee from
time to time.

 

2.20                           “Incentive
Unit” means the Company, or a part thereof (e.g., limited liability
company, business group, or major corporate staff department), as specified by
the Committee from time to time.

 

2.21                           “Individual
Performance Percentage” means the percentage remaining when the
Organizational Performance Percentage is subtracted from 100%.

 

2.22                           “Normal
Retirement Date,” of a Participant, means the date on which the Participant
has reached the age of sixty-five (65).

 

2.23                           “162(m)
Employee,” for any Fiscal Year, means an employee of the Company who, as
the close of the Fiscal Year, is:  (a)
the CEO (or an individual acting in such capacity); or (b) among the four
highest compensated officers of the Company (other than the CEO).  Whether an employee is the CEO or one of the
four highest compensated officers of the Company is determined pursuant to the
executive compensation rules of the Exchange Act.

 

2.24                           “Organizational
Performance Percentage” is the percentage applied to the Earned Incentive
Fund for an Incentive Unit for a Performance Period in order to determine the
amount of the Earned Incentive Fund that will be allocated to Participants for
the achievement of Organizational Performance Goals.  The Committee, in its discretion, will determine the
Organizational Performance Percentage for an Incentive Unit for a Performance
Period prior to the beginning of the Performance Period.  Such percentage may vary from Incentive Unit
to Incentive Unit.

 

4

 

2.25                           “Organizational
Performance Goal” has the meaning set forth in Section 5.1(b).

 

2.26                           “Outstanding
Level,” of a Performance Goal for a Performance Period, is an achievement
level above the Target Level for such goal, as specified by the Committee at
the time the Target Level is established, which generally corresponds to 200%
of a Participant’s Target Award.

 

2.27                           “Participant,”
in the Plan for any Performance Period, means an Eligible Employee who for such
Performance Period has:  (a) been
approved for participation in the Plan by the Committee; (b) satisfied the
participation requirements set forth in Article IV; and (c) commenced
participation in the Plan.

 

2.28                           “Performance
Goals,” of a Participant for a Performance Period, are the goals
established for the Participant for the Performance Period, the achievement of
which is a condition for receiving an Award under the Plan.  A Participant’s Performance Goals consist of
the Organizational Performance Goals applicable for the Incentive Unit to which
the Participant is assigned and the Individual Performance Goals established
for the Participant for his or her individual performance during the
Performance Period.

 

In the case of a Participant who is a 162(m) Employee, all Performance
Goals must be pre-established by the Committee, must be objective, and must
state, in terms of an objective formula or standard, the method for computing
the amount of compensation payable if the goal is attained.  A Performance Goal is considered
“pre-established” for purposes of this paragraph if it is established in
writing by the Committee no later than ninety (90) days after the commencement
of a Performance Period, provided that the outcome is substantially uncertain
at the time the Committee actually establishes the goal.  However, in no event will a Performance Goal
be considered to be pre-established if it is established after twenty-five
percent (25%) of a Performance Period has elapsed.  A Performance Goal is considered “objective” if a third party
having knowledge of the relevant facts could determine whether the goal is
met.  A formula or standard is
considered “objective” if a third party having knowledge of the relevant
performance results could calculate the amount to be paid to the Participant.

 

Performance goals may be based on one or more of the following factors
and may be based on attainment of a particular level of, or on a positive
change in, a factor:

 

(a)                                  revenue;

(b)                                 revenue per employee;

(c)                                  net income;

(d)                                 earnings per employee;

(e)                                  earnings per share;

(f)                                    operating income;

(g)                                 total shareholder
return;

(h)                                 earnings before income
tax;

(i)                                     return on equity

(j)                                     market share;

(k)                                  earnings before
interest and income tax;

(l)                                     before or after tax
return on net assets;

 

5

 

(m)                               economic value added;

(n)                                 sales; and

(o)                                 cash flow

 

2.29                           “Performance
Period” means, generally, the Fiscal Year. 
However, the Committee may, its discretion, designate a shorter
period.  In no event, however, shall a
Performance Period be less than six (6) months.

 

2.30                           “Retirement,”
of a Participant, means the Participant’s termination of employment with the
Company on or after the Participant’s Early Retirement Date or Normal
Retirement Date.

 

2.31                           “Stock”
means the common stock of the Company, par value on cent ($.01).

 

2.32                           “Subsidiary”
means a corporation defined in Section 424(f) of the Code.

 

2.33                           “Target
Award,” with respect to a Performance Goal, is the dollar amount assigned
for achievement of the goal at the Target Level pursuant to
Section 5.1(c).

 

2.34                           “Target
Incentive Fund,” of an Incentive Unit for a Performance Period, is the
dollar amount determined by adding together the Target Awards of each
Participant assigned to the Incentive Unit for the Performance Period.

 

2.35                           “Target
Level,” of a Performance Goal for a Performance Period, is a level of
achievement for that goal, as specified by the Committee prior to the beginning
of the Performance Period, which generally corresponds to one hundred percent
(100%) of the Target Award.

 

2.36                           “Threshold
Level,” of a Performance Goal for a Performance Period, is a level of
achievement below the Target Level of such goal and below which no Award is
payable with respect to the Performance Goal, as specified by the Committee at
the time the Target Level is established.

 

2.37                           “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.

 

Article III.  Administration of the Plan

 

3.1                                 Committee’s
Authority.  The Plan shall be
administered by the Committee.  For each
Performance Period, the Committee shall have exclusive authority to:  (a) establish the general guidelines for the
Plan (including designating the Incentive Units and Incentive Groups) and the
budget for the Plan; (b) establish the guidelines to be employed by the CEO in
the selection of Eligible Employees and approve or disapprove the CEO’s
selection of each Eligible Employee; and (c) certify the extent of the
achievement of each Performance Goal for each Participant who is a 162(m)
Employee.

 

6

 

3.2                                 Committee
Action.  A majority of the Committee
shall constitute a quorum, and the act of a majority of the members of the
Committee present at a meeting at which a quorum is present shall be the act of
the Committee.

 

3.3                                 Committee’s
Powers.  The Committee shall have
the power, in its discretion, to take such actions as may be necessary to carry
out the provisions and purposes of the Plan and shall have the authority to
control and manage the operation and administration of the Plan.  In order to effectuate the purposes of the
Plan, the Committee shall have the discretionary power and authority to
construe and interpret the Plan, to supply any omissions therein, to reconcile
and correct any errors or inconsistencies, to decide any questions in the
administration and application of the Plan, and to make equitable adjustments
for any mistakes or errors made in the administration of the Plan.  All such actions or determinations made by
the Committee, and the application of rules and regulations to a particular
case or issue by the Committee, in good faith, shall not be subject to review by
anyone, but shall be final, binding and conclusive on all persons ever
interested hereunder.

 

In construing the Plan and in exercising its power under provisions
requiring the Committee’s approval, the Committee shall attempt to ascertain
the purpose of the provisions in question and when the purpose is known or
reasonably ascertainable, the purpose shall be given effect to the extent
feasible.  The Committee shall have all
powers necessary or appropriate to accomplish its duties under the Plan
including, but not limited to, the power and duty to:

 

(a)                                  maintain complete and
accurate records of all Plan transactions, contributions, and
distributions.  The Committee shall
maintain the books of accounts, records, and other data in the manner necessary
for proper administration of the Plan;

 

(b)                                 adopt rules of
procedure and regulations necessary for the proper and efficient administration
of the Plan, provided the rules and regulations are not inconsistent with the
terms of the Plan  as set forth herein. 
All rules and decisions of the Committee shall be uniformly and
consistently applied to all Participants in similar circumstances;

 

(c)                                  enforce
the terms of the Plan and the rules and regulations it adopts;

 

(d)                                 review
claims and render decisions on claims for benefits under the Plan;

 

(e)                                  furnish the Company
or the Participants, upon request, with information that the Company or the
Participants may require for tax or other purposes;

 

(f)                                    employ agents,
attorneys, accountants or other persons (who also may be employed by or
represent the Company) for such purposes as the Committee considers necessary
or desirable in connection with its duties hereunder; and

 

(g)                                 perform any and all
other acts necessary or appropriate for the proper management and
administration of the Plan.

 

The Committee may from time to time in its discretion delegate certain
Plan administration duties to the Corporate Management, except that the
Committee may not delegate

 

7

 

its duties regarding the establishment and
certification of the Performance Goals of Participants who are 162(m)
Employees.

 

IV.                                Eligibility to
Participate

 

Participation in the Plan is limited to Eligible Employees.  Prior to each Performance Period, the CEO
shall determine which employees are Eligible Employees for the Performance
Period.  In making such determination,
the CEO shall follow the guidelines established by the Committee for the
selection of Eligible Employees.  The
Committee has final authority to approve or disapprove the CEO’s selection of
any Eligible Employee.  An Eligible
Employee shall become a Participant only upon his or her approval by the
Committee and his or her compliance with such terms and conditions as the Committee
may from time to time establish for the implementation of the Plan.

 

V.                                    Calculation
of Awards

 

A Participant’s Award for a Performance Period is determined according
to the following multi-step process:

 

5.1                                 Prior
to the beginning of a Performance Period, the Committee (in the case of Participants
who are 162(m) Employees) and Corporate Management (in the case of all other
Participants):

 

(a)                                  Determines the
Incentive Unit to which the Participant is assigned and the Incentive Group, if
any, of which the Incentive Unit is a part for purposes of determining Awards;

 

(b)                                 Sets both
Organizational and Individual Performance Goals for the Participant.  The Organizational Performance Goals for a
Participant consist of Performance Goals for the Incentive Unit to which the
Participant is assigned, the Incentive Group, if any, of which the Incentive
Unit is a part, and the Company as a whole, and are weighted depending on the
Committee’s assessment of the importance of the performance of each such unit
in determining the Participant’s Award.

 

(c)                                  Sets a Threshold,
Target, and Outstanding Level for each Performance Goal and assigns a dollar
amount for achievement of the Performance Goal at each level.  (The dollar amount assigned for achievement
of the Performance Goal at the Target Level is termed the “Target Award.”)  In the case of a Participant who is a 162(m)
Employee, the Participant’s total Award if all of his or her Performance Goals
were met at the Outstanding Level for a Fiscal Year (i.e., the highest total
Award payable under the Plan to such Participant for a Fiscal Year) may not
exceed the lesser of $2,000,000 or three (3) times the Participant’s Base
Salary for such Fiscal Year.

 

(d)                                 Determines the
Participant’s Incentive Unit’s Target Incentive Fund for the Performance Period
by adding together the Target Awards for each Participant in the Incentive
Unit.

 

8

 

5.2                                 Following
the close of a Performance Period, the Committee (in the case of Participants
who are 162(m) Employees), and Corporate Management (in the case of all other
Participants):

 

(a)                                  Compares the actual
performance of each of the organizational units for which Organizational
Performance Goals were established for the Participant pursuant to
Section 5.1(b) for the Performance Period, with the unit’s Performance
Goals for such period and determines the level of achievement for each such
Performance Goal.

 

(b)                                 Determines the dollar
amount of the Incentive Unit’s Earned Incentive Fund by applying the
organizational weightings described in Section 5.1(b) to the achievement
levels in 5.1(c) and multiplying the results by the Incentive Unit’s Target
Incentive Fund determined pursuant to Section 5.1(d).

 

(c)                                  Determines the
Participant’s Incentive Unit Award Percentage for the Performance Period by
dividing the dollar amount of the Incentive Unit’s Earned Incentive Fund by the
dollar amount of its Target Incentive Fund for such period.

 

(d)                                 Determines the
Participant’s Award, if any, for the Participant’s Organizational Performance
Goals by multiplying the Participant’s Organizational Performance Percentage by
the product of his or her cumulative Target Awards (i.e., the sum of his or her
Target Awards for the Performance Period) and his or her Incentive Unit’s Award
Percentage.

 

(e)                                  Determines the
Participant’s Award, if any, for the Participant’s Individual Performance Goals
by determining the level of achievement of each such goal.  In general, the amount allocated to each
Participant will be the amount pre-established (when the Performance Goals were
established) for achievement of the Participant’s Individual Performance Goals
at the Threshold, Target and Outstanding Levels.  However, at the discretion of the Committee, this amount may be
increased (except in the case of a Participant who is a 162(m) Employee) or
decreased based upon such objective or subjective criteria, as it deems
appropriate.  In any event, the
aggregate Awards for achievement of Individual Performance Goals for all
Participants in the Participant’s Incentive Unit for any Performance Period may
not exceed the Individual Performance Percentage of the Incentive Unit’s Earned
Incentive Fund for the Performance Period.

 

(f)                                    In the case of a
Participant who is a 162(m) Employee, the Committee shall certify the extent to
which the Participant has satisfied each of his or her Performance Goals.

 

VI.                                Payment
of Award

 

6.1                                 Timing
of Award Payment.  A Participant’s
Award for a Performance period shall be paid to him or her within 60 days
following the close of the Performance Period. 
A

 

9

 

Participant may, however, elect to defer some or all of any amount
otherwise payable to him or her in cash pursuant to this Article 6 under,
and subject to the terms of, the Alliant Techsystems Inc. Management Deferred
Compensation Plan.

 

6.2                                 Form
of Payment.  Payment of an Award
shall be in the form of a lump sum in either cash or Stock or a combination
thereof, as the Committee determines in its sole discretion.  With respect to any payment in the form of
Stock, the number of shares distributed to the Participant shall be equal to
the cash that would have been distributed to the Participant (but for the
Committee’s election to pay the Award in Stock) divided by the Fair Market
Value of the Stock determined as of the day before the date the amount of the
Award is approved by the Committee.  An
aggregate of 250,000 shares of Stock is hereby made available and reserved for
delivery under the Plan pursuant to this Section 6.2, and
Section 6.3, below.  Subject to the
foregoing limit, shares of Stock held in treasury shares by the Company may be
used for or in connection with the Plan.

 

6.3                                 Election
to Purchase Stock.  The Committee
may, in its discretion, with respect to all or any part of the cash portion of
any Award (“Cash Award”) permit such Participants or group of Participants as
it may designate to elect, in lieu of receiving payment of the Cash Award in
cash, to use the Cash Award to acquire Stock on the date such Cash Award would
otherwise be payable, at a price specified by the Committee, which price shall
be no less than 85% of Fair Market Value as of the day before the date the
amount of the Award is approved by the Committee.

 

6.4                                 Change
in Employment Status During Performance Period.  In general, a Participant must be employed by the Company on the
last day of a Performance Period in order to receive an Award for such
period.  However, if the Participant’s
employment is terminated during a Performance Period due to his or her death,
Retirement, Disability or due to his or her involuntary termination by the
Company for reasons other than Cause, or if the Participant is demoted during
the Performance Period such that he or she is no longer an Eligible Employee
and therefore unable to participate in the Plan for the remainder of the
Performance Period, the Participant (or the Participant’s beneficiary in the
case of the Participant’s death) will be entitled to receive a portion of the
Award for which the Participant otherwise would have been eligible.  The portion for which the Participant (or
beneficiary) is eligible shall be equal to a fraction, the numerator of which
is the number of days the Participant was employed as an Eligible Employee
during the Performance Period, and the denominator of which is the number of
days in the Performance Period. For purposes of this Section 6.4, a
Participant’s employment shall be considered to be involuntarily terminated by
the Company if the Participant does not request or initiate such termination,
and “Cause” shall mean that:  (a) the
Participant engages in an act of dishonesty or moral turpitude (including but
not limited to conviction of a felony) or a breach of a Company policy which
has an adverse effect upon the Company; (b) a Participant fails to substantially
perform his or her duties of employment; or (c) a Participant’s divulges any
information that the Company considers to be proprietary and confidential.  Notwithstanding anything in the Plan to the
contrary, a Participant must be employed by the Company continuously for at
least one entire calendar quarter during a Performance Period in order to be
eligible for an Award for the Performance Period.

 

If a Participant transfers employment from one Incentive Unit to
another during a Performance Period, he or she will be eligible to receive an
Award based on the performance of

 

10

 

all of the Incentive Units to which he or she was assigned during the
Performance Period, determined on a pro rata basis.  However, for Participants, other than Participants who are 162(m)
Employees, the Committee, in its discretion, may determine the Award based on
the assumption that the Participant was assigned to just one of the Incentive
Units during the Performance Period.

 

6.5                                 Beneficiary.  In the event that any amount becomes payable
under the Plan by reason of the Participant’s death, such amount shall be paid
to the same beneficiary or a beneficiaries (and in the same proportions as)
last designated by the Participant to receive benefits under the Company Basic
Life Insurance Plan upon the Participant’s death.  Such amount shall be paid to the beneficiary or beneficiaries at
the same time such amount would have been paid to the Participant had he or she
survived.  In order for such designation
to be valid for purposes of the Plan, it must be completed and filed with the
Company according to the rules established by the Company for the Company Basic
Life Insurance Plan.  If the Participant
has not completed a beneficiary designation for the Company Basic Life
Insurance Plan, or all such beneficiaries have predeceased the Participant,
then any amount that becomes payable under the Plan by reason of the
Participant’s death shall be paid to the personal representative of the Participant’s
estate.  If there is any question as to
the legal right of any person to receive a distribution under the Plan by
reason of the Participant’s death, the amount in question may, at the
discretion of the Committee, be paid to the personal representative of the
Participant’s estate, in which event the Company shall have no further
liability to anyone with respect to such amount.

 

VII.                            Change
of Control

 

Notwithstanding anything in the Plan to the contrary, in the event of a
Change of Control, each Participant shall receive payment of his or her Award,
based upon the assumption that all Performance Goals for the Performance Period
in which the Change of Control occurs were satisfied at the Target Level,
multiplied by a fraction, the numerator of which is the number of months
(calculated to the nearest whole month) of such Participant’s participation in
the Plan during the Performance Period in which the Change of Control occurs,
and the denominator of which is the number of months in the Performance Period.  Distribution of such amount shall be made in
cash in a lump sum on the fifth business day after the Change of Control
occurs.

 

VIII.                        Amendment
and Termination of the Plan

 

The Board may amend, cancel, or terminate the Plan at any time and any
such amendment, cancellation or termination may be retroactively effective,
except that no amendment, cancellation or termination shall adversely affect an
Award earned under the Plan for any Performance Period completed before
adoption of the amendment, cancellation or termination.

 

IX.                                Miscellaneous

 

9.1                                 No
Guaranty of Employment.  Neither the
adoption and maintenance of the Plan, the designation of an employee as an
Eligible Employee, the setting of Performance Goals, nor the provision of any
Award under the Plan shall be deemed to be a contract of employment between the
Company and any employee.  Nothing
contained in the Plan shall give any

 

11

 

employee the right to be retained in the
employ of the Company or to interfere with the right of the Company to
discharge any employee at any time, nor shall it give the Company the right to
require any employee to remain in its employ or to interfere with the
employee’s right to terminate his or her employment at any time.

 

9.2                                 Release.  Any payment of an Award to or for the
benefit of a Participant or a beneficiary that is made in good faith by the
Company in accordance with the Company’s interpretation of its obligations
hereunder, shall be in full satisfaction of all claims against the Company for
payments under the Plan to the extent of such payment.

 

9.3                                 Notices.  Any notice permitted or required under the
Plan shall be in writing and shall be hand-delivered or sent, postage prepaid,
by first class mail, or by certified or registered mail with return receipt
requested, to the chairman of the Committee, if to the Committee or the
Company, or to the address last shown on the records of the Company, if to a
Participant or beneficiary.  Any such
notice shall be effective as of the date of hand-delivery or mailing.

 

9.4                                 Nonalienation.  No benefit payable at any time under the
Plan shall be subject in any manner to alienation, sale, transfer, assignment,
pledge, levy, attachment, or encumbrance of any kind by any Participant or beneficiary.

 

9.5                                 Plan
is Unfunded.  All Awards under the
Plan shall be paid from the general assets of the Company.  No Participant shall be deemed to have, by
virtue of being a Participant in the Plan, any claim on any specific assets of
the Company such that the Participant would be subject to income taxation on
any Award prior to distribution to him or her, and the rights of Participants
and beneficiaries to any payments to which they are otherwise entitled under
the Plan shall be those of an unsecured general creditor of the Company.

 

9.5.                              Tax
Liability.  The Company may withhold
from any payment of Awards or other compensation payable to a Participant or
beneficiary such amounts as the Company determines are reasonably necessary to
pay any taxes required to be withheld under applicable law.

 

9.6.                              Captions.  Article and section headings and
captions are provided for purposes of reference and convenience only and shall
not be relied upon in any way to construe, define, modify, limit, or extend the
scope of any provision of the Plan.

 

9.7.                              Invalidity
of Certain Plan Provisions.  If any
provision of the Plan is held invalid or unenforceable, such invalidity or
unenforceability shall not affect any other provision of the Plan and the Plan
shall be construed and enforced as if such provision had not been included.

 

9.8.                              No
Other Agreements.  The terms and
conditions set forth herein constitute the entire understanding of the Company
and the Participants with respect to the matters addressed herein.

 

9.9.                              Incapacity.  In the event that any Participant is unable
to care for his or her affairs because of illness or accident, any payment due
may be paid to the Participant’s spouse, parent, brother, sister or other
person deemed by the Committee to have incurred expenses for the care of such
Participant, unless a duly qualified guardian or other legal representative has
been appointed.

 

12

 

9.10.                        Applicable
Law.  The Plan and all rights under
it shall be governed by and construed according to the laws of the State of
Minnesota.

 

13

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