Document:

Exhibit 10.3

 

	
 
    	
Vista Outdoor Inc.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Executive Severance Plan
    effective February 10, 2015
    
	
 
    	
 
    	
 
    
	
Vista   Outdoor Inc. (“Vista” or the “Company”) provides a severance benefit to   eligible Executives who are involuntarily terminated for convenience or due   to lay off or reduction in workforce. Note that severance is not available in   other types of terminations including voluntary resignation or termination   for cause nor is severance available when a participant is reassigned to   another position or offered other employment by a successor or acquiring   company.

 

This   document constitutes the Vista Executive Severance Plan (the “Plan”), and   also serves as the summary plan description (“SPD”), for eligible employees   adopted by the Company effective February 10, 2015.  A Change in Control does not trigger any   benefits under this Plan.

 

A severance payment is   contingent upon a signed (and unrescinded) general release of all claims   against Vista and its affiliates in a form acceptable to Vista.  Upon official notification of termination,   an individual will have a period of time to consider whether to accept and   sign the general release.  The form of   release may vary from state to state and it may be changed from time to time.
    
	
 
    	
 
    	
 
    
	
Questions
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Contact Vista’s Senior Vice   President of Human Resources if you have questions about this Plan.  You may obtain a printed copy of this SPD   from Vista’s Human Resources Department.
    
	
 
    	
 
    	
 
    
	
Reservation of rights
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Vista reserves the right to   change, amend or terminate this Plan or to change the severance benefit   available under this Plan at any time in Vista’s sole discretion.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Summary Plan Description   (SPD) 
   for Executives at Vista and its associated companies.  February 10, 2015
    

 

1

 

Plan highlights

 

	
Plan feature
    	
 
    	
How it works
    
	
 
    	
 
    	
 
    
	
Plan   participation
    	
 
    	
You   automatically become a participant in this Plan when you become a Tier 1   Executive or a Tier 2 Executive (each as defined below and collectively, an   “Executive”).  If at any time, you are   demoted or otherwise removed from an Executive position, then you are   disqualified from participation in this Plan.    Persons in contractor or consultant positions are not eligible for   benefits under this Plan.  
    
	
 
    	
 
    	
 
    
	
Plan   cost
    	
 
    	
Vista   will pay the entire cost of severance benefits paid under this Plan out of   its general funds. 
    
	
 
    	
 
    	
 
    
	
Benefit   eligibility
    	
 
    	
You   may be offered a severance benefit if you are involuntarily terminated for   convenience or due to layoff or reduction in workforce as determined by Vista   and all other conditions of this Plan are met.
    
	
 
    	
 
    	
 
    
	
Form of   Benefit
    	
 
    	
If   eligible, you will be provided at least two weeks’ notice of your termination   date, or pay in lieu of notice, and a severance benefit that includes a   lump-sum severance payment in an amount set forth in this Plan, plus an additional lump-sum payment to offset costs   to continue health care, and outplacement services.
    
	
 
    	
 
    	
 
    
	
Benefit   amount
    	
 
    	
For   a Tier 1 Executive, the amount of severance is equal to 12 months of base   salary.

 

For   a Tier 2 Executive, the amount of severance is equal to two weeks of base   salary for each full year of continuous service with Vista measured from the most recent   hire date and calculated as of the effective date of termination.  The minimum severance payment is 26 weeks   of base salary (if you have at least one full year of continuous service),   and the maximum severance payment is 39 weeks of base salary.

 

Note   that this Plan has a non-duplication of   severance benefit provision.    
    
	
 
    	
 
    	
 
    
	
General   Release
    	
 
    	
You   are required to sign a general release of all employment-related claims prior   to receiving a severance payment.  This   agreement includes post-employment restrictions relating to competition and   non-solicitation of workforce.  
    
	
 
    	
 
    	
 
    
	
When   benefit is payable
    	
 
    	
Severance   is payable after the termination of your employment and after the rescission   period set in your signed general release, if any, has elapsed. 
    

 

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Table of contents

 

	
Cover   note 
    	
1
    
	
 
    	
 
    
	
Reservation   of rights 
    	
1
    
	
 
    	
 
    
	
Plan   highlights 
    	
2
    
	
 
    	
 
    
	
About   this Plan 
    	
3
    
	
 
    	
 
    
	
Introduction   
    	
4
    
	
 
    	
 
    
	
Plan eligibility
    	
 
    
	
Benefit eligibility
    	
 
    
	
Coordination with employment agreements and other   separation benefits
    	
7
    
	
 
    	
 
    
	
Form of severance benefit
    	
 
    
	
 
    	
 
    
	
Notice
    	
 
    
	
Severance Payment
    	
 
    
	
Other Severance Benefits
    	
 
    
	
 
    	
 
    
	
General provisions 
    	
8
    
	
 
    	
 
    
	
Year of Service
    	
 
    
	
General Release
    	
 
    
	
Post-Employment Restrictions
    	
 
    
	
Pro-rata benefit for part-time employees
    	
 
    
	
Non-duplication provision
    	
 
    
	
Medical or disability leave
    	
 
    
	
Plan may be amended or terminated
    	
 
    
	
Section 409A of the Internal Revenue Code of   1986
    	
 
    
	
 
    	
 
    
	
Administration (ERISA) 
    	
11
    

 

About this Plan

 

·          This document constitutes the Executive Severance Plan (the “Plan”), and also serves as the summary plan description (“SPD”).  It explains who is eligible, what the benefit is, and how and when the benefit may be distributed.

 

·          See the Administration section for additional administrative information, including your rights under the Employee Retirement Income Security Act (ERISA).

 

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Introduction

 

The Vista severance benefit is designed to provide you with advance notice of termination, a lump sum severance payment, and other benefits described herein, if you are involuntarily terminated for convenience or due to a layoff or reduction in workforce from active regular full-time or regular part-time employment with Vista or any of its associated companies.

 

For a Tier 1 Executive, the amount of severance is equal to 12 months of base salary.  For a Tier 2 Executive, the amount of severance is equal to two weeks of base salary for each full year of continuous service with Vista measured from the most recent hire date and calculated as of the effective date of termination.  It may include service with a predecessor company. (See page 9.)  The minimum severance payment is 26 weeks of base salary (if you have at least one full year of continuous service) and the maximum severance payment is 39 weeks of base salary.

 

Plan eligibility

 

You are eligible to participate in this Plan if you are an active regular full-time or regular part-time salaried employee currently in a Tier 1 or Tier 2 Executive position.

 

·                  You are in a Tier 1 Executive position if you are a “Section 16 Officer,” i.e., an executive officer elected by the Vista Board of Directors and required to file reports of beneficial ownership with the Securities and Exchange Commission pursuant to Section 16(a) of the Securities Exchange Act of 1934, as amended from time to time, and the rules and regulations promulgated thereunder.

 

·                  You are in a Tier 2 Executive position if you are at or above a level to be determined by the Compensation Committee of Vista’s Board of Directors and you are eligible to participate in the Vista executive incentive program but are not a Section 16 Officer.

 

If you are eligible to participate in this Plan, you will remain a participant in this Plan until the earliest of the following events occur:

 

·          You voluntarily terminate your employment.  (As used in this Plan, a voluntary termination of employment excludes a formal Request for Layoff Consideration, which may be periodically offered);

 

·          You are terminated for cause by Vista;

 

·          You die, retire, or receive all severance benefits provided for under this Plan, or you no longer qualify to receive benefits under this Plan; or

 

·          Vista no longer offers this Plan.

 

For purposes of this Plan, termination for cause shall include termination for (i) any material failure by you to perform your duties, (ii) your gross negligence or willful or intentional wrongdoing or misconduct, (iii) a material breach by you of any confidentiality agreement with the Company or duty of loyalty to the Company, (iv) your commission of an act of personal dishonesty which involved material personal profit in connection with the Company, or (v) your conviction or guilty plea by you of a felony offense or a crime involving moral turpitude.  If Vista so terminates your employment for cause, then you will not be eligible for any payments or benefits under this Plan.

 

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You are not eligible to participate in this Plan if:

 

·          You are classified as other than a regular employee, e.g., temporary status, independent contractor, temporary agency employee, consultant, etc.; or

 

·          You are not an Executive of Vista or an associated company.

 

In addition, you are disqualified from participation in this Plan if you are not actively at work as of the effective date of your termination.  Generally, you are not considered actively at work if you are on a leave of absence in excess of 90 consecutive calendar days, and you are not being paid wages or Paid Time Off.  (Note: Employees on military leave of absence covered by the Uniformed Services Employment and Reemployment Rights Act (USERRA) are not disqualified from receiving a severance benefit.)

 

Benefit eligibility

 

If you are eligible to participate in this Plan, you may qualify for a severance benefit when all of the following conditions are met:

 

·                  You are involuntarily terminated for convenience or due to a layoff or reduction in workforce;

 

·                  You have signed a general release of all employment-related claims or potential claims against Vista after you are officially notified of termination and within the consideration period set in your general release; and

 

·                  The rescission period set in your general release, if any, has elapsed.

 

For purposes of this Plan, termination for convenience shall mean an involuntary termination of your employment by Vista at any time without cause.  If Vista so terminates your employment, then you may be eligible for severance.

 

Even if you are eligible, you will not qualify for a severance benefit if:

 

·          You refuse to work during the notice period or fail to satisfactorily perform your job until your termination date, as determined in the sole discretion of Vista;

 

·          You refuse to comply with a confidentiality agreement or non-compete agreement or you disclose Vista trade secrets or confidential or proprietary information;

 

·          You intentionally damage or refuse to return Vista or customer property;

 

·          You engage in conduct or behavior that would otherwise lead to termination of your employment such as disclosing confidential information, disparaging the Company, mistreating or harassing other employees, or violating other workplace rules or Vista’s code of conduct; or

 

·          You are a participant in Vista’s change-in-control severance plan and your termination of employment will entitle you to severance payments under that plan.  Under no circumstances will you receive benefits under both the change-in-control severance plan and this Plan as a result of the termination of your employment.

 

Severance benefits are not paid under this Plan in the following situations:

 

·          You are placed on a directed leave of absence or a temporary layoff status, as determined by the Company; or operations have been temporarily interrupted due to a maintenance or vacation shutdown, material shortage, etc.;

 

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·          Your location, business unit, or work function is sold, transferred, outsourced, or merged with a third party and you are offered employment by or you are transferred to the purchaser or other third party, whether or not you accept such employment;

 

·          Your termination is for cause;

 

·          A Change in Control occurs;

 

·          You are transferred from one Vista location to a different Vista location;

 

·          Your position is eliminated and you are offered a comparable position with Vista within the same geographic area;

 

·          You voluntarily terminate, resign, abandon your position (e.g., refuse to work until your termination date), or fail to return from an approved leave of absence; or

 

·          You are not eligible to participate in this Plan on the effective date of your termination of employment with Vista.

 

Even if severance benefits have commenced, all remaining benefits will be forfeited and your severance benefit will be terminated automatically if Vista determines in its sole discretion that:

 

·          You should have been disqualified or ineligible from receiving benefits under this Plan because of one of the conditions listed above;

·          You engage in any conduct that damages Vista’s business or defames or slanders Vista’s name or business reputation; or

·          You violate any provisions of your signed general release.

 

Coordination with employment agreements and other separation benefits

 

Vista retains the right to enter into side agreements with you that amend your rights under this Plan.  This Plan does not supersede any additional rights you may have pursuant to an employment agreement or under federal or state law.  However, if you are entitled to any other severance or termination of employment benefits, other than those provided by this Plan, then your benefits under this Plan will be reduced by the amounts of such other payments.  In that event, if such other payments are made at a time or in a form different from the time and form for payments under this Plan, and residual amounts are payable under this Plan, then such residual amounts shall be paid at the same time and in the same form as such other payments.  In addition, to the extent you waive your rights under this Plan pursuant to such an agreement, in no event will you receive any payment hereunder.

 

6

 

Forms of severance benefit

 

If you meet the Plan eligibility and benefit eligibility requirements contained in this Plan and you are eligible for a severance benefit, your severance benefit may include the following:

 

Notice

 

You will normally be given up to two weeks’ notice of your termination date.  Unless otherwise directed by Vista, you are expected to work through your termination date.  Failure to work during the notice period may disqualify you from receiving severance benefits.  Layoff notification paperwork will include the length of the notice period.  Vista retains the right to offer you two weeks’ pay in lieu of notice.

 

Severance Payment

 

·                  Your severance payment will be paid in a lump sum and will include:

 

·                  For a Tier 1 Executive:

 

·                  An amount equal to 12 months of base salary, regardless of length of service or time in position,

 

·                  Plus an additional lump sum of $15,000 to offset the cost of continuing health care coverage.

 

·                  For a Tier 2 Executive:

 

·                  An amount equal to two weeks of base salary for each full year of continuous service with a minimum of 26 weeks of base salary (if you have at least one full year of continuous service) and a maximum of 39 weeks of base salary.  For example, a Tier 2 Executive with one year of service is eligible for 26 weeks of base salary (minimum); a Tier 2 Executive with 14.5 years of service is eligible for 28 weeks of base salary (full years of service multiplied by two weeks of base salary); and a Tier 2 Executive with 21 years of service is eligible for 39 weeks of base salary (maximum).

 

·                  Plus an additional lump sum of $8,000 to offset the cost of continuing health care coverage.

 

·                  Subject to your signing and not revoking a general release as described below, your severance payment will be made no later than 2 1⁄2 months following your termination of employment.

 

·                  The number of months or weeks of base salary, as applicable, to which you are entitled is referred to as your “Severance Period” for purposes of this Plan.

 

Additional notes:

 

·          Taxes and other required or authorized payroll deductions will be withheld.

 

·          None of your severance payment will be considered pensionable earnings (for example, it is not “Earnings” or “Recognized Compensation”) for purposes of any Vista qualified or non-qualified retirement plan.

 

·          Except as expressly provided in this Plan, severance payments under this Plan will be reduced by payments payable to you under any other Vista severance plans or your employment agreement, as applicable.

 

·          Any money you owe Vista that has not been repaid as of your termination date will be withheld from your severance payment.

 

7

 

Other Severance Benefits

 

Outplacement Services:  Vista will provide you with outplacement services, the scope and provider of which will be determined by Vista.  You must utilize these outplacement services within six months of your termination date.  You may not receive a cash payment in lieu of this benefit.

 

Note

 

Vista Equity-Based Awards:  This Plan does not affect how stock incentives or bonuses such as stock options, restricted stock, restricted stock units or performance-based equity awards are treated upon a termination of employment.  The terms of your individual award agreements and the plans that govern such awards will govern in the event of a termination of your employment.  Payments for Vista equity-based awards will not be deducted from your severance benefit under this Plan.

 

General provisions

 

Year of Service

 

For purposes of this Plan, a Tier 2 Executive’s severance payment amount is based on full years of service with Vista.  Service includes continuous active regular status employment measured from the most recent hire date.  It also includes service with Alliant Techsystems Inc. (ATK), provided that you were continuously employed by ATK until the spin-off of Vista by ATK and then subsequently by Vista. It may also include service with a predecessor company, i.e., a company that is acquired by Vista.  It does not include time worked as a temporary status employee, independent contractor, temporary agency employee, consultant, etc. Service is calculated as of the effective date of termination.

 

If you are a Tier 2 Executive, any period of employment with a predecessor company will only be included in the calculation of your severance benefit if (1) you were employed by the predecessor company on the effective date of its acquisition by Vista or you were continuously employed by ATK until the spin-off of Vista by ATK and then subsequently by Vista, (2) you are eligible to participate in Vista’s executive incentive program, and (3) your service with the predecessor company is not specifically excluded by this Plan.

 

General Release

 

You are required to sign a general release of all employment-related claims prior to receiving any severance benefit.  This general release includes a release of all claims and causes of action, arising, or which may have arisen, out of or in connection with your employment or termination from employment with Vista.  If you are eligible for a severance payment, you will have up to 45 calendar days to consider signing the general release.  After you sign the general release, you will have up to 15 calendar days during which to rescind the general release.  The specific length of the consideration period and rescission period, if any, will be set in your individual general release.

 

Post-Employment Restrictions

 

·                  Competition Restrictions.  In order to protect Vista’s legitimate interests, including, but not limited to, confidential information, trade secrets, and customer/vendor relationships, you will not, during the Severance Period, directly or indirectly, personally engage in, nor shall you own, manage, operate, join, control, consult with, participate in the ownership, operation or control of, be employed by, or be connected in any manner with any person or entity that develops, manufactures, distributes, markets or sells services or products competitive with those that Vista manufactures, markets or sells to any customer anywhere in the world, during the Severance Period.  If during your Severance Period, you wish to obtain other non-competitive employment, you agree to meet and confer in good faith with Vista prior to accepting such employment.  You will 

 

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provide Vista with the name of any potential future employer and give Vista the right to provide a copy of this provision to such potential employer.

 

·                  Non-Solicitation.  During the Severance Period, you will not, directly or indirectly, solicit any of Vista’s employees for the purpose of hiring them or inducing them to leave their employment with Vista, nor will you own, manage, operate, join, control, consult with, participate in the ownership, management, operation or control of, be employed by, or be connected in any manner with any person or entity that engages in the conduct proscribed by this paragraph during the Severance Period.

 

·                  Breach.  If in Vista’s sole determination, you breach any of these Post-Employment Restrictions, Vista will be entitled to injunctive relief in addition to any other legal or equitable remedies.  At that time, Vista will immediately discontinue any remaining severance benefits.  Further, Vista is entitled to repayment of the percentage of your severance benefits providing consideration for these provisions.  This percentage will be identified in your General Release of Claims agreement.

 

Pro-rata benefit for part-time employees

 

If on the date your employment terminates you are classified as a regular part-time employee, your severance benefit is pro-rated, based on your current base pay and average number of hours worked over the past six months.

 

Non-duplication provision

 

For purposes of determining your severance benefit under this Plan, your full years of service are measured from your most recent hire date.  Subject to the section above entitled “Years of Service,” you will not receive a severance benefit for any previous period of employment, regardless of whether you previously received severance under this Plan or under the plan of a predecessor or affiliated company.  If due to a unique circumstance, you received severance pay or paid leave in lieu of service since your most recent hire date under this Plan or under the plan of a predecessor or affiliated company, then the years of service used to calculate the severance benefit amount you received will be subtracted from any future severance benefit.

 

Medical or disability leave

 

Like other employees who are not actively at work for more than 90 days, employees not at work due to a medical or disability leave generally are not eligible for severance when their job position is eliminated.  If the leave of absence qualifies for Short Term Disability or the employee is in the first six months of Long Term Disability, and the employee is able to return to work prior to exhausting Short Term Disability or the first six months of Long Term Disability, but there is no job position to return to, then Vista may offer the employee a severance benefit.

 

Plan may be amended or terminated

 

At any time prior to a Change in Control, Vista, through Vista’s Compensation Committee of the Board of Directors, has the sole discretion to change, amend or terminate this Plan or to change the severance benefit available under the Plan at any time.

 

For purposes of this Plan, Change in Control has the same meaning as “Change in control” in the Vista Outdoor Inc. Income Security Plan, as such may be amended from time to time.

 

In the event of a Change in Control, this Plan may not be amended, changed or terminated for a period of one year from the effective date of a Change in Control in a manner that would adversely affect eligible Plan participants unless 80 percent of such participants provide written consent.

 

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Section 409A of the Internal Revenue Code of 1986

 

It is intended that the provisions of this Plan comply with Section 409A of the Internal Revenue Code of 1986, as amended, and the regulations promulgated thereunder (“Section 409A”), and all provisions of this Plan will be construed and interpreted in a manner consistent with the requirements for avoiding taxes or penalties under Section 409A.  If, at the time of your separation from service (within the meaning of Section 409A), you are a specified employee (within the meaning of Section 409A), amounts constituting deferred compensation (within the meaning of Section 409A) that are payable under this Plan on account of your separation from service will be paid, without interest, on the first day of the seventh month following such separation from service.  Neither you nor any of your creditors or beneficiaries shall have the right to subject any deferred compensation (within the meaning of Section 409A) payable under this Plan to any anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, attachment or garnishment.  Except as permitted under Section 409A, any deferred compensation (within the meaning of Section 409A) payable to you or for your benefit under this Plan may not be reduced by, or offset against, any amount owing by you to Vista.  For the purposes of Section 409A, each payment under this Plan will be deemed to be a separate payment.  Notwithstanding any provision of this Plan to the contrary, Vista reserves the right to make amendments to this Plan as Vista deems necessary or desirable to avoid the imposition of taxes or penalties under Section 409A.  In any case, you are solely responsible and liable for the satisfaction of all taxes and penalties that may be imposed on your or for your account in connection with this Plan (including any taxes and penalties under Section 409A).

 

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Administration

 

The Employee Retirement Income Security Act of 1974 (ERISA) requires that you be given certain information to help you answer administrative questions about this Plan.  Also detailed in this section is the appeal process if your claim for benefits is denied, as well as your legal rights under ERISA.

 

	
Name   of Plan
    	
 
    	
Vista   Outdoor Inc. Employee Welfare Benefit Plan (Plan No. 501)
    
	
 
    	
 
    	
 
    
	
Plan   Sponsor and 
   Plan Administrator
    	
 
    	
Vista   Outdoor Inc.
   938 University Park Boulevard, Suite 200

Clearfield,   UT 84015
    
	
 
    	
 
    	
 
    
	
Administration
    	
 
    	
Responsibility   for administration of this Plan and interpretation of this Plan’s provisions   rests with Vista, acting through its officers and employees. Except with   respect to Tier 1 Executives (also referred to as “Section 16 Officers,”   as described in this Plan under “Introduction — Plan eligibility”), the Compensation Committee of Vista’s Board of   Directors (the “Committee”) may delegate to Vista’s Senior Vice   President of Human Resources the authority to make final determinations   regarding Plan eligibility and to provide conclusive interpretation of Plan   provisions.

 

The   Committee decides appeals of denied claims for Tier 1 Executives, and Vista’s   Senior Vice President of Human Resources has this responsibility for Tier 2 Executives.  The Committee has final discretionary   authority to decide claim appeals under this Plan for Tier 1 Executives, and   the Senior Vice President of Human Resources has that final discretionary   authority for Tier 2 Executives.

 

Correspondence   regarding this Plan should be directed to the Senior Vice President Human   Resources at the Company address shown above.
    
	
 
    	
 
    	
 
    
	
Employer   Identification Number
    	
 
    	
47-1016855
    
	
 
    	
 
    	
 
    
	
Plan   Number
    	
 
    	
501
    
	
 
    	
 
    	
 
    
	
Type   of Plan
    	
 
    	
Welfare   plan, Severance
    
	
 
    	
 
    	
 
    
	
Plan   Eligibility
    	
 
    	
As   defined in the “Introduction — Plan eligibility” section of this Plan
    
	
 
    	
 
    	
 
    
	
Plan   Funding
    	
 
    	
Unfunded   — Benefits are paid from Employer’s general assets.
    
	
 
    	
 
    	
 
    
	
Plan   Year
    	
 
    	
Plan   year begins on January 1 and ends on December 31.
    
	
 
    	
 
    	
 
    
	
Agent   for Legal Process
    	
 
    	
General   Counsel

Vista   Outdoor Inc.
   938 University Park Boulevard, Suite 200

Clearfield,   UT 84015
    

 

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CLAIMS

 

If you believe you may be entitled to benefits, or you disagree with any decision regarding your benefit, you should present a written claim / appeal to Vista at the following address. (An oral claim or request for review is not sufficient.)

 

Vista Outdoor Inc. 
  Attn: Senior Vice President of Human Resources
 938 University Park Boulevard, Suite 200

Clearfield, UT 84015

801-779-4600

 

If you do not file a written claim or follow the claims procedures, you may give up legal rights.

 

A Claim for Benefits

 

A “claim” for benefits is a request for benefits under this Plan filed in accordance with this Plan’s claims procedures. To make a claim or request review of a denied claim, you must file a written claim with Vista at the address shown above.  An oral claim or request for review is not sufficient.

 

Steps in Filing a Claim

 

Time for Filing a Claim.  You must file your written claim with Vista within one year after the date you knew or reasonably should have known of the facts behind your claim.

 

Filing a Claim.  You must file your claim with Vista at the address noted above.  You must include the facts and arguments that you want considered during the claims procedure.

 

Response from Vista.  Within 90 days of the date Vista receives your claim, you will receive a written or electronic notice of the decision or a notice describing the need for additional time (up to 90 additional days) to reach a decision.  If Vista (or in the case of a Section 16 Officer, the Compensation Committee of the Vista Board of Directors (the “Committee”)) notifies you that it needs additional time, the notice will describe the special circumstances requiring the extension and the date by which it expects to reach a decision.  If Vista (or in the case of a Section 16 Officer, the Committee) denies your claim, in whole or in part, you will receive a notice specifying the reasons, the Plan provisions on which it is based, a description of additional material (if any) needed to perfect the claim, your right to file a civil action under section 502(a) of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), if your claim is denied upon review, and it will also explain your right to request a review.

 

Steps in Filing Request for Review.

 

Time for Filing a Request for Review.  If Vista (or in the case of a Section 16 Officer, the Committee) denies your claim, you may request a review of your claim by Vista’s Senior Vice President of Human Resources (or in the case of a Section 16 Officer, the Committee).  Vista must receive actual delivery of your written request for review within 60 days after the date you receive notice that your claim was denied.

 

Filing a Request for Review of a Denied Claim.  You may file a request for review of a denied claim with Vista, which will be forwarded to the Senior Vice President of Human Resources (or in the case of a Section 16 Officer, the Committee). Your request must include issues that you want considered in the review.  You may submit written comments, documents, records, and other information relating to your 

 

12

 

claim.  Upon request, you are entitled to receive free of charge reasonable access to and copies of the relevant documents, records, and information used in the claims process.

 

Response from Vista or Compensation Committee on Review. Within 60 days after the date Vista receives your request, you will receive a written or electronic notice of the decision or a notice describing the need for additional time (up to 60 additional days) to reach a decision.  If you are notified that the Senior Vice President of Human Resources (or in the case of a Section 16 Officer, the Committee) needs additional time, the notice will describe the special circumstances requiring the extension and the date by which a decision is expected to be reached.  If the Senior Vice President of Human Resources (or in the case of a Section 16 Officer, the Committee) affirms the denial of your claim, in whole or in part, you will receive a notice specifying the reasons, the Plan provisions on which it is based, notice that upon request you are entitled to receive free of charge reasonable access to and copies of the relevant documents, records, and information used in the claims process, and your right to file a civil action under section 502(a) of ERISA.

 

If the Senior Vice President of Human Resources or the Compensation Committee Requests Further Information Regarding Your Claim on Review.  If the Senior Vice President of Human Resources (or in the case of a Section 16 Officer, the Committee) determines that further information is needed to complete the review of your denied claim, you will receive a written notice describing the additional information necessary to make the decision.  You will then have 60 days from the date you receive the notice requesting additional information to provide it to the Senior Vice President of Human Resources (or in the case of a Section 16 Officer, the Committee).  The time between the date the Senior Vice President of Human Resources (or in the case of a Section 16 Officer, the Committee) sends the request to you and the date of receipt of the requested additional information from you shall not count against the 60-day period in which the Senior Vice President of Human Resources (or in the case of a Section 16 Officer, the Committee) has to decide your claim on review.  If the Senior Vice President of Human Resources (or in the case of a Section 16 Officer, the Committee) does not receive a response, then the period by which the Senior Vice President of Human Resources (or in the case of a Section 16 Officer, the Committee) must reach a decision shall be extended by the 60-day period provided to you to submit the additional information.  Note:  If special circumstances exist, this period may be further extended.

 

In General.  The Senior Vice President of Human Resources (or in the case of a Section 16 Officer, the Committee) will make all decisions on claims and review of claims.  With respect to the review of original and denied claims, the Senior Vice President of Human Resources (or in the case of a Section 16 Officer, the Committee) has the sole discretion, final authority, and responsibility to decide all factual and legal questions under this Plan.  This includes interpreting and construing this Plan and any ambiguous or unclear terms, and determining whether a claimant is eligible for benefits and the amount of the benefits, if any, a claimant is entitled to receive.  The Senior Vice President of Human Resources` (or in the case of a Section 16 Officer, the Committee) may hold hearings and reserves the right to delegate its authority to make decisions. The Senior Vice President of Human Resources (or in the case of a Section 16 Officer, the Committee) may rely on any applicable statute of limitations as a basis to deny a claim.  The Senior Vice President’s (or in the case of a Section 16 Officer, the Committee’s) decisions are conclusive and binding on all parties.  You may, at your own expense, have an attorney or representative act on your behalf, but the Senior Vice President of Human Resources (or in the case of a Section 16 Officer, the Committee) reserves the right to require a written authorization for a person to act on your behalf.

 

Time Periods.  The time period for review of your claim begins to run on the date Vista receives your written claim.  Similarly, if you file a timely request for review, the review period begins to run on the date Vista receives your written request.  In both cases, the time period begins to run regardless of whether you submit comments or information that you would like to be considered on review.

 

13

 

Limitations Period.  If you file your claim within the required time, complete the entire claims procedure, and the Senior Vice President of Human Resources (or in the case of a Section 16 Officer, the Committee) denies your claim after you request a review, you may sue over your claim (unless you have executed a release on your claim).  You must, however, commence that suit within 30 months after you knew or reasonably should have known of the facts behind your claim or, if earlier, within six months after the claims procedure is completed.

 

Exhaustion of Administrative Remedies.  Before commencing legal action to recover benefits, or to enforce or clarify rights, you must completely exhaust this Plan’s claim and review procedures.

 

Administrative Safeguards.  This Plan uses the claims procedures outlined herein and the review by the Senior Vice President of Human Resources (or in the case of a Section 16 Officer, the Committee) as administrative processes and safeguards to ensure that this Plan’s provisions are correctly and consistently applied. The Senior Vice President of Human Resources (or in the case of a Section 16 Officer, the Committee) has the sole discretion, authority, and responsibility to decide all factual and legal questions under this Plan.  This includes interpreting and construing this Plan document and any ambiguous or unclear terms within this Plan document, and determining whether a claimant is eligible for benefits under this Plan and the amount of the benefits, if any, a claimant is entitled to receive.  The Senior Vice President’s (or in the case of a Section 16 Officer, the Committee’s) decisions are conclusive and binding on all parties.

 

Your legal rights.  As a participant in this Plan, you are entitled to certain rights and protections under ERISA.  ERISA requires that all Plan participants shall be entitled to:

 

·          Examine all Plan documents, including insurance contracts and collective bargaining agreements that govern this Plan, and a copy of the latest annual report (Form 5500) filed by this Plan with the U.S. Department of Labor and available at the Public Disclosure Room of the Employee Benefits Security Administration (“EBSA”).  These documents are available for inspection at no charge in the Plan Administrator’s office, and other specified locations, such as worksites and union halls.

 

·          Obtain, upon written request to the Plan Administrator, copies of documents governing the operation of this Plan, including insurance contracts and collective bargaining agreements, and copies of the latest annual report (Form 5500 Series) and updated summary plan description.  The Plan Administrator may charge a reasonable amount for the copies.

 

·          Receive a summary of the annual financial report for any plan that pertains to you.  The Plan Administrator is required to furnish you with financial summaries called Summary Annual Reports (SARs).

 

Prudent Actions by Plan Fiduciaries

 

In addition to creating certain rights for plan participants, ERISA imposes certain duties on the people who are responsible for the operation of the employee benefit plans.  The people who operate this Plan, called “fiduciaries” of this Plan, have a duty to do so prudently and in the interest of you and other Plan participants and beneficiaries.

 

No one including your employer, your union, or any other person, may fire you or otherwise discriminate against you in any way to prevent you from obtaining a benefit or exercising your rights under ERISA.

 

Enforce Your Rights

 

If your claim for a welfare benefit is denied or ignored, in whole or in part, you have a right to know why this as done, to obtain copies of documents relating to the decision without charges and to appeal any denial, all within certain time schedules.

 

Under ERISA, there are steps you can take to enforce the above rights.  For instance, if you request in writing a copy of plan documents or the latest annual report from this Plan and do not receive them within 30 

 

14

 

days, you may file suit in Federal court.  In such a case, the court may require the Plan Administrator to provide the materials to you and pay you up to $110 a day until you receive the materials, unless the materials were not sent because of reasons beyond the control of the Plan Administrator.

 

If you have a claim for benefits that is denied or ignored, in whole or in part, you may file suit in a state or Federal court.  In addition, if you disagree with this Plan’s decision or lack thereof concerning the qualified status of a domestic relations order or a medical child support order, you may file suit in Federal court.  If it should happen that Plan fiduciaries misuse this Plan’s money, or if you are discriminated against for asserting your rights, you may seek assistance from the U.S. Department of Labor, or you may file suit in Federal court.  The court will decide who should pay court costs and legal fees.  If you are successful, the court may order the person or entity you have sued to pay these costs and fees.  If you lose, the court may order you to pay these costs and fees (for example, if the court finds your claim frivolous).

 

Assistance with Your Questions

 

If you have any questions about your benefits, you should contact the Plan Administrator.  If you have any questions about this statement or about your rights under ERISA, or if you need assistance in obtaining documents from the Plan Administrator, you should contact the nearest area office of the Employee Benefits Security Administration, U.S. Department of Labor, listed in your telephone directory, or the Division of Technical Assistance and Inquiries, Employee Benefit Security Administration, U.S. Department of Labor, 200 Constitution Avenue N.W., Washington DC 20210.  You may also obtain certain publications about your rights and responsibilities under ERISA by calling the publications hotline of the Employee Benefits Security Administration.

 

15Exhibit 10.4

 

VISTA OUTDOOR INC. DEFINED BENEFIT 
 SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

 

Effective

February 10, 2015

 

 

VISTA OUTDOOR INC. DEFINED BENEFIT 
 SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

 

TABLE OF CONTENTS

 

	
 
    	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    	
 
    
	
SECTION 1
    	
 
    	
INTRODUCTION
    	
1
    
	
 
    	
 
    	
 
    	
 
    
	
1.1.
    	
Purposes   of Plan
    	
1
    
	
1.2.
    	
History
    	
1
    
	
 
    	
 
    	
 
    	
 
    
	
SECTION 2
    	
 
    	
PLAN   NAME
    	
1
    
	
 
    	
 
    	
 
    	
 
    
	
SECTION 3
    	
 
    	
PARTICIPATING   EMPLOYEES
    	
1
    
	
 
    	
 
    	
 
    	
 
    
	
3.1.
    	
Participating   Employees
    	
1
    
	
3.2.
    	
Pension   Plan
    	
2
    
	
3.3.
    	
Overriding   Exclusion
    	
2
    
	
 
    	
 
    	
 
    	
 
    
	
SECTION 4
    	
 
    	
BENEFITS   PAYABLE
    	
3
    
	
 
    	
 
    	
 
    	
 
    
	
4.1.
    	
Benefit   for Participating Employees
    	
3
    
	
4.2.
    	
Vesting
    	
5
    
	
4.3.
    	
General   Distribution Rules
    	
5
    
	
 
    	
 
    	
 
    	
 
    
	
SECTION 5
    	
 
    	
FUNDING
    	
5
    
	
 
    	
 
    	
 
    	
 
    
	
5.1.
    	
Funding
    	
5
    
	
5.2.
    	
Corporate   Obligation
    	
6
    
	
 
    	
 
    	
 
    	
 
    
	
SECTION 6
    	
 
    	
GENERAL   MATTERS
    	
6
    
	
 
    	
 
    	
 
    	
 
    
	
6.1.
    	
Amendment   and Termination
    	
6
    
	
6.2.
    	
Limited   Benefits
    	
6
    
	
6.3.
    	
Spendthrift   Provision
    	
7
    
	
6.4.
    	
Errors   in Computations
    	
7
    
	
6.5.
    	
Correction   of Errors
    	
7
    
	
 
    	
 
    	
 
    	
 
    
	
SECTION 7
    	
 
    	
FORFEITURE   OF BENEFITS
    	
7
    
	
 
    	
 
    	
 
    	
 
    
	
SECTION 8
    	
 
    	
DETERMINATIONS   AND CLAIMS PROCEDURE
    	
8
    
	
 
    	
 
    	
 
    	
 
    
	
8.1.
    	
Determinations
    	
8
    
	
8.2.
    	
Claims   Procedure
    	
9
    
	
8.3.
    	
Limitations   and Exhaustion
    	
10
    
	
 
    	
 
    	
 
    	
 
    
	
SECTION 9
    	
 
    	
PLAN   ADMINISTRATION
    	
11
    

 

i

 

	
9.1.
    	
Committee
    	
11
    
	
9.2.
    	
Senior   Vice President of Human Resources
    	
11
    
	
9.3.
    	
PRC
    	
12
    
	
9.4.
    	
Delegation
    	
12
    
	
9.5.
    	
Conflict   of Interest
    	
12
    
	
9.6.
    	
Administrator
    	
12
    
	
9.7.
    	
Service   of Process
    	
12
    
	
9.8.
    	
Expenses
    	
12
    
	
9.9.
    	
Tax   Withholding
    	
12
    
	
9.10.
    	
Certifications
    	
12
    
	
9.11.
    	
Rules and   Regulations
    	
12
    
	
 
    	
 
    	
 
    	
 
    
	
SECTION 10
    	
 
    	
 
    	
13
    
	
 
    	
 
    	
 
    	
 
    
	
10.1.
    	
Defined   Terms
    	
13
    
	
10.2.
    	
ERISA   Status
    	
13
    
	
10.3.
    	
IRC   Status
    	
13
    
	
10.4.
    	
Effect   on Other Plans
    	
13
    
	
10.5.
    	
Disqualification
    	
13
    
	
10.6.
    	
Rules of   Document Construction
    	
13
    
	
10.7.
    	
References   to Laws
    	
14
    
	
10.8.
    	
Effect   on Employment
    	
14
    
	
10.9.
    	
Choice   of Law
    	
14
    

 

ii

 

VISTA OUTDOOR INC. DEFINED BENEFIT
 SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN
 Effective February 10, 2015

 

SECTION 1

 

INTRODUCTION

 

1.1.                                        Purposes of Plan.  The purpose of the Vista Outdoor Inc. Defined Benefit Supplemental Executive Retirement Plan is to restore the benefit amounts that would be payable to select participants in the tax-qualified defined benefit pension plan sponsored by Vista Outdoor Inc. (“Vista”) as described in Section 3.2 hereof (the “Pension Plan”) 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.

 

1.2.                                        History.  Vista has adopted a tax-qualified defined benefit Pension Plan called:  “VISTA OUTDOOR INC. PENSION AND RETIREMENT PLAN” (the “Pension Plan”), for the purpose of providing retirement benefits to certain of its employees and employees of certain affiliates.  The Pension Plan is subject to the Employee Retirement Income Security Act of 1974, as amended, (“ERISA”), and is intended to qualify under section 401(a) of the Code.  By operation of section 401(a) of the Code, benefits under the Pension Plan 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.

 

This Plan is adopted effective February 10, 2015  to comply with section 409A of the Code.

 

SECTION 2

 

PLAN NAME

 

This plan shall be referred to as the VISTA OUTDOOR INC. DEFINED BENEFIT 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 Vista Outdoor Inc. and its affiliates:

 

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

 

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

 

(c)                                                                      who are Participants in the Pension Plan (as described in Section 3.2 below) and (i) who are actively employed by Vista Outdoor Inc. or its affiliates or on approved leave of absence, and (ii) whose benefits under the 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 Vista (or any person authorized to act on behalf of the CEO by the Board of Directors of Vista Outdoor Inc. (the “Board of Directors”) and, for a Section 16 Officer, by the Compensation Committee of 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 Vista or any predecessor, successor or affiliate.

 

Notwithstanding anything apparently to the contrary contained in this Plan, no individual hired or rehired as an employee of Alliant Techsystems Inc. or any of its affiliates, or Vista or any of its affiliates, on or after January 1, 2007 shall be a Participating Employee with respect to any period of employment beginning on or after January 1, 2007, except as and in accordance with such terms as may be specified by the Personnel and Compensation Committee of the Board of Directors of Alliant Techsystems Inc., or the Compensation Committee of the Board of Directors of Vista, respectively.

 

3.2.                                        Pension Plan.  For purposes of this Plan, the “Pension Plan” is the Vista Outdoor Inc. Pension and Retirement Plan, including the benefit structures under such plan known as the Vista

 

2

 

Outdoor Inc. Retirement Plan, the Vista Outdoor Inc. Aerospace Pension Plan, the Vista Outdoor Inc. SEG Retirement Plan, the Vista Outdoor Inc. Federal Cartridge Company Pension Plan, the Vista Outdoor Inc. Pension Equity Plan, the Vista Outdoor Inc. Lake City Retirement Plan, the Vista Outdoor Inc. Cash Balance Plan, and the Vista Outdoor Inc. Thiokol Pension 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 Pension Plan if such benefit had been determined:

 

(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 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, the Vista Outdoor 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

 

3

 

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

 

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

 

Notwithstanding anything to the contrary in the Plan, if the Participating Employee is or was a Participant in the Pension Plan under the benefit structure known as the Vista Outdoor Inc. SEG Retirement Plan or the Vista Outdoor Inc. Federal Cartridge Company Pension Plan, or any of their predecessors, 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.

 

Notwithstanding anything to the contrary in the Plan, this Plan shall pay to Participating Employees identified on Schedule 1 attached to the Plan who terminate employment at or after age 55 the greater of (i) the amount determined under this Section 4.1.1 or (ii) the amount determined under this Section 4.1.1 as of June 30, 2013 as if the Pension Plan were the benefit structure known as the Vista Outdoor Inc. Pension Equity Plan under the Pension Plan plus the amount otherwise determined under Section 4.1.1 with respect to service beginning July 1, 2013.

 

Notwithstanding anything apparently to the contrary in this Plan, no benefit of a Participating Employee who is a former employee of Alliant Techsystems Inc. or any of its affiliates and who was rehired by Alliant Techsystems Inc. or any of its affiliates, or by Vista or any of its affiliates, on or after January 1, 2007 shall be attributable in whole or in part to employment, services or compensation after such rehire date, except as and in accordance with such terms as may be specified by the Personnel and Compensation Committee of the Board of Directors of Alliant Techsystems Inc., or the Compensation Committee of the Board of Directors of Vista, respectively.

 

4.1.2.                                                      Form of Payment.

 

(a)                                                                     Each Participating Employee shall receive payment of benefits under this Plan in the form of a lump sum on the later of (i) the first day of the seventh month following the month in which the Participating Employee terminates employment or (ii) February 1 of the calendar year following the calendar year in which the Participating Employee terminates employment, but in neither case later than the last day of the calendar year following the calendar year in which the Participating Employee terminates employment.  All lump sum amounts paid under this Subsection (a) shall be determined as of the date of termination of employment, based on the mortality table described in section 417(e) of the Code and an interest rate that is the greater of 6% or the interest rate described in section 417(e) of the Code (as in effect under the Pension Plan on the first day of the month following termination of employment), except that lump sums for Participating Employees covered by the benefit structures known as the Vista Outdoor Inc. Retirement Plan, the Vista Outdoor Inc. Pension Equity Plan or the Vista Outdoor Inc. Cash Balance

 

4

 

Plan under the Pension Plan shall be their Account Balances (as that term is defined under those benefit structures, respectively).  Simple interest will be credited for the period from the first day of the month following termination of employment until the date of payment, at a rate equal to the greater of 6% or the rate described in section 417(e) of the Code, as in effect under the Pension Plan on the first day of the month following termination of employment.

 

(b)                                                                     For purposes of subsection (a) of this Section 4.1.2, for lump sums calculated using the stated interest and mortality factors, lump sum amounts shall be determined on the basis of (i) the immediate annuity to which the Participating Employee is entitled under the applicable Pension Plan in the case of a Participating Employee who is entitled to an immediate annuity under the Pension Plan, or (ii) the annuity to which the Participating Employee is entitled at Normal Retirement Age (as that term is defined in the Pension Plan) under the Pension Plan in the case of a Participating Employee who is not entitled to an immediate annuity under the applicable Pension Plan.

 

(c)                                                                      Any reference in this Plan to termination of employment shall mean the separation from service with Vista and all entities treated as members of the same controlled group with Vista under section 414(b) or (c) of the Code.  Controlled group membership shall be determined by substituting “at least 50 percent” for “at least 80 percent” each place it appears in section 1563(a)(1), (2) and (3) of the Code, and by substituting “at least 50 percent” for “at least 80 percent” each place it appears in Treas. Reg. § 1.414(c)-2.

 

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

 

4.3.                                        General Distribution Rules.

 

4.3.1.                                                      Section 162(m) Determination.  If the PRC (or, for any Section 16 Officer, the Board of Directors) determines that delaying the time payment is made would increase the probability that payment would be fully deductible for federal or state income tax purposes, Vista may unilaterally delay the time of the making of such payment or any portion of such payment until the earliest year during which Vista reasonably anticipates that the payment will be fully deductible, but not later than twenty-four (24) months after the date such payment would otherwise be payable.

 

5

 

SECTION 5

 

FUNDING

 

5.1.                                        Funding.  Vista 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, Vista may (but shall not be required to) establish and maintain a grantor trust pursuant to an agreement between Vista and a trustee selected by Vista; 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.  Vista may contribute to a grantor trust thereby created such amounts as it may from time to time determine.

 

5.2.                                        Corporate Obligation.  Neither Vista’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 Vista 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 Vista in connection with this Plan.  Neither Vista 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 Vista.

 

SECTION 6

 

GENERAL MATTERS

 

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

 

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

 

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

 

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

 

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 Vista may not amend or terminate the Plan with respect to benefits that have accrued and are vested pursuant to Section 4.3, the applicable

 

6

 

Pension Plan or an individual agreement between Vista 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 Vista 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 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.  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.  Vista 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 Vista, and used by Vista in determining the benefit.  Vista 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, if any, to such Participating Employee shall be adjusted to reflect any prior mistakes under rules adopted by Vista.  If no further benefits are payable under the Plan, Vista 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.

 

7

 

SECTION 7

 

FORFEITURE OF BENEFITS

 

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

 

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

 

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

 

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

 

(d)                                                                     made materially false representations which are relied upon by Vista or an affiliate of Vista 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 Vista or an affiliate of Vista; or

 

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

 

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

 

(h)                                                                     has been convicted of any crime which directly or indirectly arose out of his her employment relationship with Vista or an affiliate of Vista or materially affected his or her ability to discharge the duties of his or her employment with Vista or an affiliate of Vista; 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 Vista, without the consent of Vista.

 

8

 

SECTION 8

 

DETERMINATIONS AND CLAIMS PROCEDURE

 

8.1.                                        Determinations.  The Compensation Committee of Vista Outdoor Inc.’s Board of Directors (the “Committee”) and the Vista Pension and Retirement Committee (“PRC”) shall make such determinations as may be required from time to time in the administration of the Plan.  The Committee and the PRC shall have the final and conclusive 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.

 

8.2.                                        Claims Procedure.  Until modified by the Committee, 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 (or in the case of a Section 16 officer, the Committee) a written claim for benefits under this Plan.  Within ninety (90) days after the filing of such a claim, the PRC (or the Committee for a Section 16 officer) 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 (or the Committee for a Section 16 officer) 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 Committee 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 Committee 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

 

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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 (or the Committee for a Section 16 officer) and all decisions on requests for a review of denied claims shall be made by the Committee.

 

(c)                                                                      the PRC and the Committee 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 Committee 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 (or the Committee for a Section 16 officer) on a claim and a decision of the Committee 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 Committee.

 

(g)                                                                      The PRC and the Committee 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 (or the Committee for a Section 16 officer) 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 (or the Committee for a Section 16 officer) 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

 

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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.

 

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 Committee (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.                                        Committee.  Except as otherwise provided herein, functions generally assigned to Vista shall be discharged by the Committee or delegated and allocated as provided herein.

 

9.2.                                        Senior Vice President of Human Resources. The most senior executive responsible for the human resources function (“Senior Vice President of Human Resources”) shall:

 

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

 

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

 

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

 

(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; and

 

(g)                                                                      delegate or redelegate to one or more persons, jointly or severally, such functions assigned to the Senior Vice President of Human Resources hereunder as it may from time to time deem advisable.

 

9.3.                                        PRC.  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.

 

9.4.                                        Delegation.  The Committee and the members of the Committee and PRC 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.

 

9.5.                                        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.

 

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

 

9.7.                                        Service of Process.  In the absence of any designation to the contrary by the PRC, the General Counsel of Vista 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.

 

9.8.                                        Expenses.  All expenses of administering this Plan shall be borne by Vista.

 

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

 

9.10.                                 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, the Committee or the PRC by any officer who has been authorized to make such certification or to give such notices or consents.

 

9.11.                                 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 Plan or any other plan.  It is specifically contemplated that the Pension Plan 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 Pension Plan 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

 

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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, Vista 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 Utah 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 Utah.

 

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