Document:

Exhibit 10.1

 

ALLIANT TECHSYSTEMS INC.

Nonqualified Deferred Compensation Plan

Master Plan Document

 

 

 

Alliant Techsystems Inc.

 

Nonqualified Deferred Compensation Plan

 

 

 

 

As Amended and Restated

 

Effective January 1, 2005

 

As Further Adopted on September 6, 2007

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 1

  	
  Definitions

  	
   

  	
  1

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 2

  	
  Selection, Enrollment, Eligibility

  	
   

  	
  6

  
	
   

  	
   

  	
   

  	
   

  
	
  2.1

  	
  Selection

  	
   

  	
  6

  
	
  2.2

  	
  Enrollment and Eligibility Requirements;
  Commencement of Participation

  	
   

  	
  6

  
	
  2.3

  	
  Termination of a Participant’s Eligibility

  	
   

  	
  7

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 3

  	
  Deferral Commitments; Company Contribution Amounts;
  Company Restoration Matching Amounts ;Vesting; Crediting; Taxes

  	
   

  	
  7

  
	
   

  	
   

  	
   

  	
   

  
	
  3.1

  	
  Minimum Deferrals

  	
   

  	
  7

  
	
  3.2

  	
  Maximum Deferral

  	
   

  	
  8

  
	
  3.3

  	
  Election to Defer; Effect of Election Form

  	
   

  	
  8

  
	
  3.4

  	
  Withholding and Crediting of Annual Deferral Amounts

  	
   

  	
  9

  
	
  3.5

  	
  Company Contribution Amount

  	
   

  	
  9

  
	
  3.6

  	
  Company Restoration Matching Amount

  	
   

  	
  9

  
	
  3.7

  	
  Crediting of Amounts after Benefit Distribution

  	
   

  	
  10

  
	
  3.8

  	
  Vesting

  	
   

  	
  10

  
	
  3.9

  	
  Crediting and Debiting of Account Balances

  	
   

  	
  10

  
	
  3.10

  	
  FICA and Other Taxes

  	
   

  	
  12

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 4

  	
  Scheduled Distribution; Unforeseeable Financial
  Emergencies

  	
   

  	
  12

  
	
   

  	
   

  	
   

  	
   

  
	
  4.1

  	
  Scheduled Distribution

  	
   

  	
  12

  
	
  4.2

  	
  Postponing Scheduled Distributions

  	
   

  	
  13

  
	
  4.3

  	
  Certain Benefits Take Precedence Over Scheduled
  Distributions

  	
   

  	
  13

  
	
  4.4

  	
  Withdrawal Payout; Suspensions for Unforeseeable
  Financial Emergencies

  	
   

  	
  13

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 5

  	
  Retirement Benefit

  	
   

  	
  14

  
	
   

  	
   

  	
   

  	
   

  
	
  5.1

  	
  Retirement Benefit

  	
   

  	
  14

  
	
  5.2

  	
  Payment of Retirement Benefit

  	
   

  	
  14

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 6

  	
  Termination Benefit

  	
   

  	
  15

  
	
   

  	
   

  	
   

  	
   

  
	
  6.1

  	
  Termination Benefit

  	
   

  	
  15

  
	
  6.2

  	
  Payment of Termination Benefit

  	
   

  	
  15

  

 

i

 

	
  ARTICLE 7

  	
  Disability Benefit

  	
   

  	
  16

  
	
   

  	
   

  	
   

  	
   

  
	
  7.1

  	
  Disability Benefit

  	
   

  	
  16

  
	
  7.2

  	
  Payment of Disability Benefit

  	
   

  	
  16

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 8

  	
  Death Benefit

  	
   

  	
  16

  
	
   

  	
   

  	
   

  	
   

  
	
  8.1

  	
  Death Benefit

  	
   

  	
  16

  
	
  8.2

  	
  Payment of Death Benefit

  	
   

  	
  16

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 9

  	
  Form of Payment

  	
   

  	
  16

  
	
   

  	
   

  	
   

  	
   

  
	
  9.1

  	
  Payment in Cash or Common Stock

  	
   

  	
  16

  
	
  9.2

  	
  Relation to Stock Incentive Plan

  	
   

  	
  16

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 10

  	
  Beneficiary Designation

  	
   

  	
  17

  
	
   

  	
   

  	
   

  	
   

  
	
  10.1

  	
  Beneficiary

  	
   

  	
  17

  
	
  10.2

  	
  Beneficiary Designation; Change; Spousal Consent

  	
   

  	
  17

  
	
  10.3

  	
  Acknowledgement

  	
   

  	
  17

  
	
  10.4

  	
  No Beneficiary Designation

  	
   

  	
  17

  
	
  10.5

  	
  Doubt as to Beneficiary

  	
   

  	
  17

  
	
  10.6

  	
  Discharge of Obligations

  	
   

  	
  17

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 11

  	
  Leave of Absence

  	
   

  	
  18

  
	
   

  	
   

  	
   

  	
   

  
	
  11.1

  	
  Paid Leave of Absence

  	
   

  	
  18

  
	
  11.2

  	
  Unpaid Leave of Absence

  	
   

  	
  18

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 12

  	
  Termination of Plan, Amendment or Modification

  	
   

  	
  18

  
	
   

  	
   

  	
   

  	
   

  
	
  12.1

  	
  Termination of Plan

  	
   

  	
  18

  
	
  12.2

  	
  Amendment

  	
   

  	
  19

  
	
  12.3

  	
  Effect of Payment

  	
   

  	
  19

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 13

  	
  Administration

  	
   

  	
  19

  
	
   

  	
   

  	
   

  	
   

  
	
  13.1

  	
  Committee Duties

  	
   

  	
  19

  
	
  13.2

  	
  Agents

  	
   

  	
  19

  
	
  13.3

  	
  Binding Effect of Decisions

  	
   

  	
  19

  
	
  13.4

  	
  Indemnity

  	
   

  	
  20

  
	
  13.5

  	
  Employer Information

  	
   

  	
  20

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 14

  	
  Other Benefits and Agreements

  	
   

  	
  20

  
	
   

  	
   

  	
   

  	
   

  
	
  14.1

  	
  Coordination with Other Benefits

  	
   

  	
  20

  

 

ii

 

	
  ARTICLE 15

  	
  Claims Procedures

  	
   

  	
  20

  
	
   

  	
   

  	
   

  	
   

  
	
  15.1

  	
  Presentation of Claim

  	
   

  	
  20

  
	
  15.2

  	
  Notification of Decision

  	
   

  	
  20

  
	
  15.3

  	
  Review of a Denied Claim

  	
   

  	
  21

  
	
  15.4

  	
  Decision on Review

  	
   

  	
  21

  
	
  15.5

  	
  Legal Action

  	
   

  	
  22

  
	
  15.6

  	
  Determinations

  	
   

  	
  22

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 16

  	
  Trust

  	
   

  	
  22

  
	
   

  	
   

  	
   

  	
   

  
	
  16.1

  	
  Establishment of the Trust

  	
   

  	
  22

  
	
  16.2

  	
  Interrelationship of the Plan and the Trust

  	
   

  	
  22

  
	
  16.3

  	
  Distributions From the Trust

  	
   

  	
  22

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 17

  	
  Miscellaneous

  	
   

  	
  22

  
	
   

  	
   

  	
   

  	
   

  
	
  17.1

  	
  Status of Plan

  	
   

  	
  22

  
	
  17.2

  	
  Unsecured General Creditor

  	
   

  	
  23

  
	
  17.3

  	
  Employer’s Liability

  	
   

  	
  23

  
	
  17.4

  	
  Nonassignability

  	
   

  	
  23

  
	
  17.5

  	
  Not a Contract of Employment

  	
   

  	
  23

  
	
  17.6

  	
  Furnishing Information

  	
   

  	
  23

  
	
  17.7

  	
  Terms

  	
   

  	
  23

  
	
  17.8

  	
  Captions

  	
   

  	
  23

  
	
  17.9

  	
  Governing Law

  	
   

  	
  24

  
	
  17.10

  	
  Notice

  	
   

  	
  24

  
	
  17.11

  	
  Successors

  	
   

  	
  24

  
	
  17.12

  	
  Spouse’s Interest

  	
   

  	
  24

  
	
  17.13

  	
  Validity

  	
   

  	
  24

  
	
  17.14

  	
  Incompetent

  	
   

  	
  24

  
	
  17.15

  	
  Deduction Limitation on Benefit Payments

  	
   

  	
  25

  
	
  17.16

  	
  Insurance

  	
   

  	
  25

  
	
   

  	
   

  	
   

  	
   

  
	
  APPENDIX A - PRIOR PLAN STATEMENT

  	
   

  	
  A-1

  

 

iii

 

ALLIANT TECHSYSTEMS INC.

NONQUALIFIED DEFERRED COMPENSATION PLAN

Amended
and Restated Effective January 1, 2005

As
Further Adopted on September 6, 2007

 

History and Purpose

 

Effective January 1, 2003, ALLIANT TECHSYSTEMS INC., a Delaware
corporation (hereinafter, the “Company”), established a nonqualified, unfunded
deferred compensation plan (the “Plan”) which is currently embodied in a
document titled “ALLIANT TECHSYSTEMS INC. NONQUALIFIED DEFERRED COMPENSATION
PLAN (As amended and Restated March 18, 2003)” as amended (the “Prior Plan
Statement”). Deferred compensation credited under the Plan which relates
entirely to services performed on or before December 31, 2004 shall continue to
be governed by the terms of the Prior Plan Statement, attached hereto as
Appendix A. Deferred compensation credited under the Plan which relates all or
in part to services performed on or after January 1, 2005 shall be governed by
the terms of this Plan restatement, the terms of which are intended to comply
with the deferred compensation provisions in the American Jobs Creation Act of
2004. Clarifying amendments were made on September 6, 2007 to comply with the
American Jobs Creation Act of 2004.

 

The purpose of this Plan is to provide specified benefits to a select
group of management or highly compensated Employees who contribute materially
to the continued growth, development and future business success of the Company
and its subsidiaries. This Plan is nonqualified and unfunded for tax purposes
and for purposes of Title I of ERISA.

 

ARTICLE 1

Definitions

 

For the purposes of this Plan, unless otherwise clearly apparent from
the context, the following phrases or terms shall have the following indicated
meanings:

 

1.1           “Account Balance” shall
mean, with respect to a Participant, an entry on the records of the Employer
equal to the sum of the Participant’s Annual Accounts. The Account Balance
shall be a bookkeeping entry only and shall be utilized solely as a device for
the measurement and determination of the amounts to be paid to a Participant,
or his or her designated Beneficiary, pursuant to this Plan.

 

1.2           “Annual Account” shall mean,
with respect to a Participant, an entry on the records of the Employer equal to
the following amount: (i) the sum of the Participant’s Annual Deferral Amount,
Company Contribution Amount and Company Restoration Matching Amount for any one
Plan Year, plus (ii) amounts credited or debited to such amounts pursuant to
this Plan, less (iii) all distributions made to the Participant or his or her
Beneficiary pursuant to this Plan that relate to the Annual Account for such
Plan Year. The Annual Account shall be a bookkeeping entry only and shall be
utilized solely as a device for the measurement and determination of the
amounts to be paid to a Participant, or his or her designated Beneficiary,
pursuant to this Plan.

 

1.3           “Annual Deferral Amount”
shall mean that portion of a Participant’s Base Salary, Performance Cash and
Performance Shares that a Participant defers in accordance with Article 3 for
any one Plan Year, without regard to whether such amounts are withheld and
credited during such Plan

 

1

 

Year.
In the event of a Participant’s Retirement, Disability, death or Termination of
Employment prior to the end of a Plan Year, such year’s Annual Deferral Amount
shall be the actual amount withheld prior to such event.

 

1.4           “Annual Installment Method”
shall be an annual installment payment over the number of years selected by the
Participant  in accordance with
this Plan, calculated as follows: (i) for the first annual installment, the
Participant’s vested portion of each Annual Account shall be calculated as of
the close of business on the Participant’s Benefit Distribution Date,  and (ii) for remaining annual
installments, the vested portion of each applicable Annual Account shall be
calculated on each anniversary of the Benefit Distribution Date (or if such
calculation date is not a business day, the preceding business day). Each
annual installment shall be calculated by multiplying this balance by a
fraction, the numerator of which is one and the denominator of which is the
remaining number of annual payments due the Participant. By way of example, if
the Participant elects a 10-year Annual Installment Method as the form of
Retirement Benefit for an Annual Account, the first payment shall be 1/10 of
the vested balance of such Annual Account, calculated as described in this
definition. The following year, the payment shall be 1/9 of the vested balance
of such Annual Account, calculated as described in this definition.

 

1.5           “Annual Performance Share
Amount” shall mean the portion of the Participant’s Annual Deferral Amount, if
any, representing Performance Shares deferred in accordance with Article 3 of
the Plan. Annual Performance Share Amounts shall be credited to the Performance
Share Accounts of Participants, determined by the number of performance shares
that would otherwise be paid based upon the achievement of the performance
goals and the other requirements for the payment of performance shares, but for
the election to defer.

 

1.6           “Base Salary” shall mean the
annual cash compensation relating to services performed during any calendar
year, excluding distributions from nonqualified deferred compensation plans,
bonuses, commissions, overtime, fringe benefits, profit sharing contributions,
stock options, relocation expenses, incentive payments, non-monetary awards,
and automobile and other allowances paid to a Participant for employment
services rendered (whether or not such allowances are included in the Employee’s
gross income). Base Salary shall be calculated before reduction for
compensation voluntarily deferred or contributed by the Participant pursuant to
all qualified or nonqualified plans of any Employer and shall be calculated to
include amounts not otherwise included in the Participant’s gross income under
Code Sections 125, 402(e)(3), 402(h), or 403(b) pursuant to plans established
by any Employer; provided, however, that all such amounts will be included in
compensation only to the extent that had there been no such plan, the amount
would have been payable in cash to the Employee. In no event shall Base Salary
include any amounts payable to the Participant prior to the commencement of his
or her participation in this Plan.

 

1.7           “Beneficiary” shall mean one
or more persons, trusts, estates or other entities, designated in accordance
with Article 10, that are entitled to receive benefits under this Plan upon the
death of a Participant.

 

1.8           “Beneficiary Designation
Form” shall mean the form established from time to time by the Senior Vice
President of Human Resources that a Participant completes, signs and returns to
the Company to designate one or more Beneficiaries.

 

2

 

1.9           “Benefit Distribution Date”
shall mean the date that triggers distribution of a Participant’s vested
Account Balance. A Participant’s Benefit Distribution Date shall be the
earliest to occur of any one of the following:

 

(a)           If the Participant Retires,
his or her Benefit Distribution Date shall be the last day of the six-month
period immediately following the date on which the Participant Retires;
provided, however, in the event the Participant changes his or her Retirement
Benefit election for one or more Annual Accounts in accordance with Section
5.2(a), his or her Benefit Distribution Date for such Annual Account(s) shall
be postponed in accordance with such Section 5.2(a); or

 

(b)           If the Participant
experiences a Termination of Employment, his or her Benefit Distribution Date
shall be the last day of the six-month period immediately following the date on
which the Participant experiences a Termination of Employment; provided,
however, in the event the Participant elects to receive one or more Annual
Accounts as of the first anniversary of his or her Termination of Employment in
accordance with Section 6.2, his or her Benefit Distribution Date shall be
postponed in accordance with such Section 6.2; or

 

(c)           The date on which the
Company is provided with proof that is satisfactory to the Senior Vice
President of Human Resources of the Participant’s death, if the Participant
dies prior to the complete distribution of his or her vested Account Balance.

 

1.10         “Board” shall mean the board
of directors of the Company.

 

1.11         “CEO” shall mean the Chief
Executive Officer of the Company.

 

1.12         “Claimant” shall have the
meaning set forth in Section 15.1.

 

1.13         “Code” shall mean the
Internal Revenue Code of 1986, as amended from time to time.

 

1.14         “Committee” shall mean the
Personnel and Compensation Committee (also known as the “P&C”) of the Board
of Directors of the Company.

 

1.15         “Company” shall mean ALLIANT
TECHSYSTEMS INC., a Delaware corporation, and any successor to all or
substantially all of the Company’s assets or business.

 

1.16         “Company Contribution
Account” shall mean (i) the sum of the Participant’s Company Contribution
Amounts, plus (ii) amounts credited or debited to the Participant’s Company
Contribution Account in accordance with this Plan, less (iii) all distributions
made to the Participant or his or her Beneficiary pursuant to this Plan that
relate to the Participant’s Company Contribution Account.

 

1.17         “Company Contribution Amount”
shall mean, for any one Plan Year, the amount determined in accordance with
Section 3.5.

 

1.18         “Company Restoration
Matching Account” shall mean (i) the sum of all of a Participant’s Company
Restoration Matching Amounts, plus (ii) amounts credited or debited to the
Participant’s Company Restoration Matching Account in accordance with this
Plan, less (iii) all distributions made to the Participant or his or her
Beneficiary pursuant to this Plan that relate to the Participant’s Company
Restoration Matching Account.

 

3

 

1.19         “Company Restoration
Matching Amount” shall mean, for any one Plan Year, the amount determined in
accordance with Section 3.6.

 

1.20         “Death Benefit” shall mean
the benefit set forth in Article 8.

 

1.21         “Deduction Limitation” shall
mean the limitation on a benefit that may otherwise be distributable pursuant
to the provisions of this Plan, as set forth in Section 17.15.

 

1.22         “Deferral Account” shall
mean (i) the sum of all of a Participant’s Annual Deferral Amounts, plus (ii)
amounts credited or debited to the Participant’s Deferral Account in accordance
with this Plan, less (iii) all distributions made to the Participant or his or
her Beneficiary pursuant to this Plan that relate to his or her Deferral
Account.

 

1.23         “Disability” or “Disabled”
shall mean that a Participant is (i) unable to engage in any substantial
gainful activity by reason of any medically determinable physical or mental
impairment which can be expected to result in death or can be expected to last
for a continuous period of not less than 12 months, or (ii) by reason of any medically
determinable physical or mental impairment which can be expected to result in
death or can be expected to last for a continuous period of not less than 12
months, receiving income replacement benefits for a period of not less than
three months under an accident or health plan covering employees of the
Participant’s Employer.

 

1.24         “Disability Benefit” shall
mean the benefit set forth in Article 7.

 

1.25         “Election Form” shall mean
the form, which may be in electronic format, established from time to time by
the Committee that a Participant completes, signs and returns to the Company to
make an election under the Plan.

 

1.26         “Employee” shall mean a
person who is an employee of any Employer.

 

1.27         “Employer(s)” shall mean the
Company and/or any of its subsidiaries (now in existence or hereafter formed or
acquired) that have employees who participate in the Plan.

 

1.28         “ERISA” shall mean the
Employee Retirement Income Security Act of 1974, as amended from time to time.

 

1.29         “401(k) Plan” shall mean a
plan adopted by the Employer that is qualified under Code Section 401(a) that
contains a cash or deferral arrangement described in Code Section 401(k), as
amended from time to time.

 

1.30         “Participant” shall mean any
Employee (i) who is selected to participate in the Plan and (ii) who submits an
executed Election Form and Beneficiary Designation Form, which are accepted by
the Company.

 

1.31         “Performance Cash” shall
mean any performance-based cash compensation, in addition to Base Salary,
earned by a Participant under any Employer’s annual or long-term bonus and
incentive plans for services rendered during a performance period of at least
12 months, as further specified on an Election Form approved by the Committee
in its sole discretion.

 

1.32         “Performance Shares” shall
mean any performance-based stock compensation earned by a Participant under any
Employer performance award plan for services rendered during a performance
period of at least 12 months, as further specified on an Election Form approved
by the Committee in its sole discretion.

 

4

 

1.33         “Performance Share Account”
shall mean the portion of the Deferral Account equal to (i) the sum of all of a
Participant’s Annual Performance Share Amounts, plus (ii) the value of the
number of additional share units credited as a result of stock dividends or
deemed reinvestment of cash dividends, less (iii) all distributions made to the
Participant or his or her Beneficiary pursuant to this Plan that relate to his
or her Performance Share Account.

 

1.34         “PIC” shall mean the ATK
Pension Investment Committee.

 

1.35         “Plan” shall mean the
ALLIANT TECHSYSTEMS INC. Nonqualified Deferred Compensation Plan, which shall
be evidenced by this instrument, as it may be amended from time to time.

 

1.36         “Plan Year” shall  mean a period beginning on January 1 of
each calendar year and continuing through December 31 of such calendar year.

 

1.37         “Prior Plan Statement” shall
mean the document, attached hereto as Appendix A and which is a part of the
Plan, titled “ALLIANT TECHSYSTEMS INC. NONQUALIFIED DEFERRED COMPENSATION PLAN
(As amended and Restated March 18, 2003)” as amended.

 

1.38         “PRC” shall mean the ATK
Pension and Retirement Committee.

 

1.39         “Retirement”, “Retire(s)” or
“Retired” shall mean, with respect to an Employee, separation from service with
all Employers and all entities treated as members of the same controlled group
with any Employer under Code Section 414(b) or (c), for any reason other than a
leave of absence, death or Disability on or after the attainment of age 55 with
two Years of Service. Controlled group membership shall be determined by
substituting “at least 50 percent” for “at least 80 percent” each place it
appears in Code Section 1563(a)(1), (2) and (3), and by substituting “at least
50 percent” for “at least 80 percent” each place it appears in Treas. Reg.
§1.414(c)-2.

 

1.40         “Retirement Benefit” shall
mean the benefit set forth in Article 5.

 

1.41         “Scheduled Distribution”
shall mean the distribution set forth in Section 4.1.

 

1.42         “Section 16 Officer” shall
mean an “officer” of the Company as defined in the rules promulgated under
Section 16 of the Securities Exchange Act of 1934, as amended.

 

1.43         “Senior Vice President of
Human Resources” shall mean the most senior officer of the Company in charge of
the human resources function at the time the action is taken with respect to
the Plan.

 

1.44         “Terminate the Plan” or “Termination
of the Plan” shall mean a determination by the Committee that (i) all
Participants shall no longer be eligible to participate in the Plan, (ii) all
deferral elections for such Participants shall terminate, and (iii) such
Participants shall no longer be eligible to receive Company contributions under
this Plan.

 

1.45         “Termination Benefit” shall
mean the benefit set forth in Article 6.

 

1.46         “Termination of Employment”
shall mean the separation from service with all Employers and all entities
treated as members of the same controlled group with any Employer under Code
Section 414(b) or (c), voluntarily or involuntarily, for any reason other than
Retirement, Disability, death or an authorized leave of absence. Controlled
group membership shall be determined by substituting “at least 50 percent” for “at
least 80 percent” each place it appears in Code Section 1563(a)(1), (2) and
(3), and by substituting “at least 50 percent” for “at least 80 percent” each
place it appears in Treas. Reg. §1.414(c)-2.

 

5

 

1.47         “Trust” shall mean one or
more trusts established by the Company in accordance with Article 16.

 

1.48         “Unforeseeable Financial
Emergency” shall mean an unanticipated emergency that is caused by an event
beyond the control of the Participant that would result in severe financial
hardship to the Participant resulting from (i) a sudden and unexpected illness
or accident of the Participant, the Participant’s spouse, or a dependent of the
Participant, (ii) a loss of the Participant’s property due to casualty, or
(iii) such other similar extraordinary and unforeseeable circumstances arising
as a result of events beyond the control of the Participant, all as determined
in the sole discretion of the Senior Vice President of Human Resources or, in
the case of a Section 16 Officer, the Committee.

 

1.49         “Years of Service” shall
mean an Employee’s period of service with ALLIANT TECHSYSTEMS INC. or a related
Employer measured in full years. A Participant shall receive credit for one
full year of “Service” for each Plan Year in which the Participant had at least
1,000 hours of service for a participating Employer or related Employer.

 

ARTICLE 2

 

Selection, Enrollment, Eligibility

 

2.1           Selection.  Participation in the Plan shall be limited to
a select group of management or highly compensated Employees, as determined by
the CEO in his or her sole discretion; provided, however, that all Section 16
Officers shall be eligible to participate in the Plan (while employed as a
Section 16 Officer) and need not be selected by the CEO in order to be eligible
to participate in the Plan.

 

2.2           Enrollment
and Eligibility Requirements; Commencement of Participation.  As a condition to participation, each
selected Employee who is eligible to participate in the Plan effective as of
the first day of a Plan Year shall complete, execute and return to the Company
an Election Form and a Beneficiary Designation Form prior to the first day of
such Plan Year, or such other earlier deadline as may be established by the
Senior Vice President of Human Resources in his or her sole discretion. In
addition, the Committee may establish from time to time such other enrollment
requirements as it determines, in its sole discretion, are necessary.

 

(a)           A selected Employee who
first becomes eligible to participate in this Plan after the first day of a
Plan Year must complete these requirements within 30 days after he or she first
becomes eligible to participate in the Plan, or within such other earlier
deadline as may be established by the Senior Vice President of Human Resources,
in his or her sole discretion, in order to participate for that Plan Year. In
such event, such person’s participation in this Plan shall not commence earlier
than 30 days after he or she first becomes eligible to participate in the Plan
or, in the case of an Employee who is not a Section 16 Officer, on the date
determined by the Senior Vice President of Human Resources, and such person
shall not be permitted to defer under this Plan any portion of his or her Base
Salary, Performance Cash and/or Performance Shares that are paid with respect
to services performed prior to his or her participation commencement date,
except to the extent permissible under Code Section 409A and related Treasury
guidance or Regulations.

 

6

 

(b)           Each selected Employee who
is eligible to participate in the Plan shall commence participation in the Plan
only after the Employee has met all enrollment requirements set forth in this
Plan and required by the Committee, including returning all required documents
to the Company within the specified time period. Notwithstanding the foregoing,
the Company shall process such Participant’s deferral election as soon as
administratively practicable after such deferral election is submitted to the
Company.

 

(c)           If an Employee fails to meet
all requirements contained in this Section 2.2 within the period required, that
Employee shall not be eligible to participate in the Plan during such Plan
Year.

 

2.3           Termination
of a Participant’s Eligibility.   The CEO (or in the case of a Section 16
Officer, the Committee) shall have the right, in his or her sole discretion, to
(i) prevent the Participant from making future deferral elections, and/or (ii)
take further action that the CEO or the Committee deems appropriate. Notwithstanding
the foregoing, in the event of a Termination of the Plan in accordance with
Section 1.43, the termination of the affected Participants’ eligibility for
participation in the Plan shall not be governed by this Section 2.3, but rather
shall be governed by Section 1.43 and Section 12.1. In the event that a
Participant is no longer eligible to defer compensation under this Plan, the
Participant’s Account Balance shall continue to be governed by the terms of
this Plan until such time as the Participant’s Account Balance is paid in
accordance with the terms of this Plan.

 

ARTICLE 3

 

Deferral Commitments; Company Contribution Amounts; 

Company Restoration Matching Amounts; Vesting; Crediting;
Taxes

 

3.1           Minimum
Deferrals. 

 

(a)           Annual
Deferral Amount. For each Plan Year, a Participant may elect to
defer, as his or her Annual Deferral Amount, Base Salary, Performance Cash
and/or Performance Shares in the following minimum amounts for each deferral
elected: 

 

	
  Cash
  Compensation

  	
   

  	
  Minimum Amount

  	
   

  
	
  Base Salary

  	
   

  	
  1

  	
  %

  
	
  Performance Cash

  	
   

  	
  1

  	
  %

  

 

	
  Equity
  Compensation

  	
   

  	
  Deferral Amount

  	
   

  
	
  Performance
  Shares

  	
   

  	
  1

  	
  %

  

 

If, prior to the beginning
of a Plan Year, a Participant has made an election for less than the stated
minimum amounts, or if no election is made, the amount deferred shall be zero. If,
at any time after the beginning of a Plan Year, a Participant has deferred less
than the

 

7

 

stated minimum amounts for
that Plan Year, any amount credited to the Participant’s Account Balance as the
Annual Deferral Amount for that Plan Year shall be distributed to the
Participant within 60 days after the last day of the Plan Year.

 

(b)           Short Plan
Year. Notwithstanding the foregoing, if a Participant
first becomes a Participant after the first day of a Plan Year, the minimum
Annual Deferral Amount shall be an amount equal to the minimum set forth above,
multiplied by a fraction, the numerator of which is the number of complete
months remaining in the Plan Year and the denominator of which is 12.

 

3.2           Maximum
Deferral.

 

(a)           Annual
Deferral Amount. For each Plan Year, a Participant may elect to
defer, as his or her Annual Deferral Amount, Base Salary, Performance Cash
and/or Performance Shares up to the following maximum percentages for each
deferral elected:

 

	
  Deferral

  	
   

  	
  Maximum Percentage

  	
   

  
	
  Base Salary

  	
   

  	
  70

  	
  %

  
	
  Performance Cash

  	
   

  	
  100

  	
  %

  
	
  Performance
  Shares

  	
   

  	
  100

  	
  %

  

 

(b)           Short Plan
Year. Notwithstanding the foregoing, if a Participant
first becomes a Participant after the first day of a Plan Year, the maximum
Annual Deferral Amount shall be limited to the amount of compensation not yet
earned by the Participant as of the date the Participant submits an Election
Form to the Company for acceptance.

 

3.3           Election to
Defer; Effect of Election Form.

 

(a)           First Plan
Year. In connection with a Participant’s commencement of
participation in the Plan, the Participant shall make an irrevocable deferral
election for the Plan Year in which the Participant commences participation in
the Plan, along with such other elections as the Senior Vice President of Human
Resources (or in the case of a Section 16 Officer, the Committee) deems
necessary or desirable under the Plan. For these elections to be valid, the
Election Form must be completed and signed by the Participant, timely delivered
to the Company (in accordance with Section 2.2 above) and accepted by the
Company.

 

(b)           Subsequent
Plan Years. For each succeeding Plan Year, an irrevocable
deferral election for that Plan Year, and such other elections as the Senior
Vice President of Human Resources (or in the case of a Section 16 Officer, the
Committee) deems necessary or desirable under the Plan, shall be made by timely
delivering a new Election Form to the Company, in accordance with the terms of
the Plan, before the end of the Plan Year preceding the Plan Year for which the
election is made. If no such Election Form is timely delivered for a Plan Year,
the Annual Deferral Amount shall be zero for that Plan Year.

 

(c)           Performance-Based
Compensation. Notwithstanding the
foregoing, an irrevocable deferral election pertaining to Performance Cash or
Performance Shares may be made by timely delivering an Election Form to the
Company, in accordance with the terms of the

 

8

 

Plan,
no later than the earlier of (i) six months before the end of the performance
period or (ii) such earlier date as the Senior Vice President of Human
Resources may determine, in his or her sole discretion, for the Plan Year. For
any Plan Year the Committee may determine, in its sole discretion, that any
such election shall be limited to the portion of Performance Cash and/or
Performance Shares designated by the Committee. “Performance-based compensation”
shall be compensation based on services performed over a period of at least 12
months, in accordance with Code Section 409A and related guidance.

 

(d)           Restricted
Stock Amounts. Effective January 1, 2005, deferrals of restricted
stock (which do not otherwise qualify as Performance Shares) shall not be
permitted under this Plan. Notwithstanding the foregoing, a Participant’s
election to defer restricted stock which was made on or prior to December 31,
2004 under the terms of the Prior Plan Statement with respect to restricted
stock which vests on or after January 1, 2005 shall be treated as an Annual
Performance Share Amount under this Plan restatement. As of the date on which
such restricted stock amounts vest, such Participant’s Performance Share
Account shall be credited with the number of units equal to the number of shares
of ATK common stock that would have otherwise been delivered to the Participant.
Such units shall become payable in accordance with the terms of this Plan
statement (and not the Prior Plan Statement). Restricted stock deferrals which
vested and were credited to this Plan on or prior to December 31, 2004 shall be
governed exclusively under the terms of the Prior Plan Statement.

 

3.4           Withholding
and Crediting of Annual Deferral Amounts.  For each Plan Year, the Base Salary portion
of the Annual Deferral Amount shall be withheld from each regularly scheduled
Base Salary payroll in equal amounts, as adjusted from time to time for
increases and decreases in Base Salary. The Performance Cash and/or Performance
Shares portion of the Annual Deferral Amount shall be withheld at the time the
Performance Cash and/or Performance Shares are or otherwise would be paid to
the Participant, whether or not this occurs during the Plan Year itself. Annual
Deferral Amounts shall be credited to a Participant’s Deferral Account as soon
as reasonably practicable following the time such amounts would otherwise have
been paid to the Participant.

 

3.5           Company
Contribution Amount. For each Plan Year, the CEO (or in the case
of a Section 16 Officer, the Committee) may, in his or her sole discretion,
credit any amount to any Participant’s Annual Account under this Plan, which
amount shall be part of the Participant’s Company Contribution Amount for that
Plan Year. The amount so credited to a Participant may be smaller or larger
than the amount credited to any other Participant, and the amount credited to
any Participant for a Plan Year may be zero, even though one or more other
Participants receive a Company Contribution Amount for that Plan Year. The
Company Contribution Amount described in this Section 3.5, if any, shall be
credited to the Participant’s Annual Account for the applicable Plan Year on a
date or dates to be determined by the CEO (or the Committee as applicable), in
his or her sole discretion.

 

3.6           Company
Restoration Matching Amount.  A Participant’s Company Restoration Matching
Amount for any Plan Year shall be the amount necessary to make up for the lost
share, if any, of matching contributions (but not elective deferred
contributions) under the 401(k) Plan attributable to the Participant’s
deferrals under this Plan that would have otherwise been

 

9

 

allocated
to the account of the Participant under the 401(k) Plan for such Plan Year. The
amount so credited to a Participant under this Plan for any Plan Year (i) may
be smaller or larger than the amount credited to any other Participant and (ii)
may differ from the amount credited to such Participant in the preceding Plan
Year. The Participant’s Company Restoration Matching Amount, if any, shall be
credited to the Participant’s Annual Account for the applicable Plan Year as
soon as administratively practicable after the amount can be determined for the
applicable Plan Year.

 

3.7           Crediting
of Amounts after Benefit Distribution.  Notwithstanding any provision in this Plan to
the contrary, if the complete distribution of a Participant’s vested Account
Balance occurs prior to the date on which any portion of (i) the Annual
Deferral Amount that a Participant has elected to defer in accordance with
Section 3.3, (ii) the Company Contribution Amount, or (iii) the Company
Restoration Matching Amount, would otherwise be credited to the Participant’s
Account Balance, such amounts shall not be credited to the Participant’s
Account Balance, but shall be paid to the Participant in a single lump sum as
soon as administratively practicable after the amount can be determined.

 

3.8           Vesting. A Participant
shall at all times be 100% vested in his or her Account Balance; provided,
however, that a Participant shall be vested in any Company Contribution Amount
credited to his or her Company Contribution Account in accordance with the
vesting schedule(s) set forth in his or her employment agreement or any other
agreement entered into between the Participant and his or her Employer, or as
declared by the CEO (or, in the case of a Section 16 Officer, the Committee). A
different vesting schedule may apply to each Company Contribution Amount
credited to the Participant’s Company Contribution Account. If no vesting
schedule is specified in such agreements or declared by the CEO or Committee,
as applicable, a Company Contribution Amount shall be 100% vested.

 

3.9           Crediting
and Debiting of Account Balances.  In accordance with, and subject to, the rules
and procedures that are established from time to time by the PIC, amounts shall
be credited or debited to a Participant’s Account Balance in accordance with
the following rules:

 

(a)           Measurement
Funds. The Participant may elect one or more of the
measurement funds selected by the PIC, in its sole discretion, which are based
on certain mutual funds or other collective investment vehicles (the “Measurement
Funds”), for the purpose of crediting or debiting additional amounts to his or
her Account Balance (other than the Performance Share Account). As necessary,
the PIC may, in its sole discretion, discontinue, substitute or add a
Measurement Fund. Each such action will take effect as of the first day of the
first calendar quarter that begins at least 30 days after the day on which the
PIC gives Participants advance written notice of such change.

 

(b)           Election of
Measurement Funds. A Participant, in connection with his or
her initial deferral election in accordance with Section 3.3(a) above, shall
elect, on the Election Form, one or more Measurement Fund(s) (as described in
Section 3.9(a) above) to be used to determine the amounts to be credited or
debited to his or her Account Balance (other than the Performance Share
Account). If a Participant does not elect any of the Measurement Funds as
described in the previous sentence, the Participant’s Account Balance (other
than the Performance Share Account) shall automatically be allocated into the
money market Measurement Fund, as determined by the PIC from time to time, in
its

 

10

 

sole
discretion. The Participant may (but is not required to) elect, by submitting
an Election Form to the Company that is accepted by the Company, to add or
delete one or more Measurement Fund(s) to be used to determine the amounts to
be credited or debited to his or her Account Balance (other than the
Performance Share Account), or to change the portion of his or her Account
Balance (other than the Performance Share Account) allocated to each previously
or newly elected Measurement Fund. If an election is made in accordance with
the previous sentence, it shall apply as of the first business day that is
administratively practicable, and shall continue thereafter for each subsequent
day in which the Participant participates in the Plan, unless changed in
accordance with the previous sentence.

 

(c)           Proportionate
Allocation. In making any election described in Section 3.9(b)
above, the Participant shall specify on the Election Form, in increments of 1%,
the percentage of his or her Account Balance or Measurement Fund, as
applicable, to be allocated/reallocated.

 

(d)           Annual
Performance Share Amounts. Annual Performance Shares
Amounts shall be allocated to the ATK common stock Measuring Fund as of the
date on which such performance shares would otherwise have been paid under the
applicable Company stock incentive plan, and the Participant’s Performance
Share Account shall be credited with the number of units equal to the number of
shares of ATK common stock that would have otherwise been delivered to the
Participant.

 

(i)            Cash
Dividends. An amount shall be credited on any cash dividend
payment date in that number of units equal to the number of shares that could
have been purchased on the dividend payment date, based upon the closing price
of ATK common stock as reported on the New York Stock Exchange for such date,
with the value of the cash dividends paid on shares of stock equal to the
number of units credited to the Performance Share Account as of the record date
for such dividend.

 

(ii)           Changes in
ATK Common Stock. In the event that the Committee shall determine
that any dividend or other distribution (whether in the form of cash, shares,
other securities or other property), recapitalization, stock split, reverse stock
split, reorganization, merger, consolidation, split-up, spin-off, combination,
repurchase or exchange of shares of the Company’s common stock or other
securities of the Company, issuance of warrants or other rights to purchase
shares of the Company’s common stock or other securities of the Company or
other similar corporate transaction or event affects the Company’s common stock
such that an adjustment is determined by the Committee to be appropriate in
order to prevent dilution or enlargement of the benefits or potential benefits
intended to be made available under the Plan, then the Committee shall, in such
manner as it may deem equitable, adjust the number, value and/or type of units
that are credited to the Participants’ Performance Share Account.

 

(iii)          Voting. No
Participant or Beneficiary shall be entitled to any voting rights with respect
to any units credited to the Performance Share Account.

 

(e)           Crediting
or Debiting Method. The performance of each Measurement Fund
(either positive or negative) will be determined on a daily basis based on the
manner in which

 

11

 

such Participant’s Account Balance has been
hypothetically allocated among the Measurement Funds by the Participant.

 

(f)            No Actual
Investment. Notwithstanding any other provision of this Plan
that may be interpreted to the contrary, the Measurement Funds are to be used
for measurement purposes only, and a Participant’s election of any such
Measurement Fund, the allocation of his or her Account Balance thereto, the
calculation of additional amounts and the crediting or debiting of such amounts
to a Participant’s Account Balance shall  not be considered or
construed in any manner as an actual investment of his or her Account Balance
in any such Measurement Fund. In the event that the Company or the Trustee (as
that term is defined in the Trust), in its own discretion, decides to invest
funds in any or all of the investments on which the Measurement Funds are
based, no Participant shall have any rights in or to such investments
themselves. Without limiting the foregoing, a Participant’s Account Balance
shall at all times be a bookkeeping entry only and shall not represent any
investment made on his or her behalf by the Company or the Trust; the Participant
shall at all times remain an unsecured creditor of the Company.

 

3.10        FICA and
Other Taxes.

 

(a)           Annual Deferral Amounts. For each Plan Year in
which an Annual Deferral Amount is being withheld from a Participant, the
Participant’s Employer(s) shall withhold, in a manner determined by the
Employer(s), the Participant’s share of FICA and other employment taxes on such
Annual Deferral Amount. If necessary, the Company may reduce the Annual
Deferral Amount in order to comply with this Section 3.10.

 

(b)           Company
Restoration Matching Account and Company Contribution Account. When a
Participant’s Annual Account is credited with a Company Restoration Matching
Amount and/or Company Contribution Amount (or, if such amount is subject to a
vesting schedule, when such Participant is vested in such amount), the
Participant’s Employer(s) shall withhold, in a manner determined by the
Employer(s), the Participant’s share of FICA and other employment taxes on such
Company Restoration Matching Amount and/or Company Contribution Amount. If
necessary, the Company may reduce the vested portion of the Participant’s
Company Restoration Matching Account or Company Contribution Account, as
applicable, in order to comply with this Section 3.10.

 

(c)           Distributions. The Participant’s
Employer(s), or the trustee of the Trust, shall withhold from any payments made
to a Participant under this Plan all federal, state and local income,
employment and other taxes required to be withheld by the Employer(s), or the
trustee of the Trust, in connection with such payments, in amounts and in a
manner to be determined in the sole discretion of the Employer(s) and the
trustee of the Trust.

 

ARTICLE 4

Scheduled Distribution; Unforeseeable Financial Emergencies 

 

4.1           Scheduled
Distribution.  In
connection with each election to defer an Annual Deferral Amount, a Participant
may irrevocably elect to receive a Scheduled Distribution, in the form of a
lump sum payment, from the Plan with respect to all or a portion of the Annual
Account (excluding Annual Performance Share Amounts and Company Contribution
Amounts). The Scheduled

 

12

 

Distribution
shall be a lump sum payment in an amount that is equal to the portion of the
Annual Account the Participant elected to have distributed as a Scheduled
Distribution, plus amounts credited or debited in the manner provided in
Section 3.9 above on that amount, calculated as of the close of business on the
date on which the Scheduled Distribution becomes payable (or on the immediately
preceding business day if such date is not a business day). Subject to the
other terms and conditions of this Plan, each Scheduled Distribution elected
shall be paid out during a 60-day period commencing immediately after the first
day of any Plan Year designated by the Participant. The Plan Year designated by
the Participant must be at least three Plan Years after the end of the Plan
Year to which the Participant’s deferral election described in Section 3.3
relates. By way of example, if a Scheduled Distribution is elected for Annual
Accounts that are earned in the Plan Year commencing January 1, 2005, the
Scheduled Distribution would become payable during a 60-day period commencing
January 1, 2009.

 

4.2           Postponing
Scheduled Distributions. A Participant may elect to
postpone a Scheduled Distribution described in Section 4.1 above, and have such
amount paid out during a 60-day period commencing immediately after an
allowable alternative distribution date designated by the Participant in accordance
with this Section 4.2. In order to make this election, the Participant must
submit a new Scheduled Distribution Election Form to the Company in accordance
with the following criteria:

 

(a)           Such Scheduled Distribution
Election Form must be submitted to and accepted by the Company at least 12
months prior to the Participant’s previously designated Scheduled Distribution
Date;

 

(b)           The new Scheduled
Distribution Date selected by the Participant must be the first day of a Plan
Year, and must be at least five years after the previously designated Scheduled
Distribution Date; and

 

(c)           The election of the new
Scheduled Distribution Date shall have no effect until at least 12 months after
the date on which the election is made;

 

Provided, however, a Participant
may elect to postpone each Scheduled Distribution no more than one time.

 

4.3           Certain
Benefits Take Precedence Over Scheduled Distributions.  If a Benefit Distribution Date occurs that
triggers a benefit under Articles 5, 6, 7 or 8, any Annual Account that is
subject to a Scheduled Distribution election under Section 4.1 shall not be
paid in accordance with Section 4.1, but shall be paid in accordance with the
other applicable Article. Notwithstanding the foregoing, the Committee shall
interpret this Section 4.3 in a manner that is consistent with Code Section
409A and other applicable tax law, including, but not limited to, guidance
issued after the effective date of this Plan.

 

4.4           Withdrawal
Payout; Suspensions for Unforeseeable Financial Emergencies.

 

(a)           If the Participant
experiences an Unforeseeable Financial Emergency, the Participant may petition
the Senior Vice President of Human Resources (or in the case of a Section 16
Officer, the Committee) to receive a partial or full payout from the Plan. The
Participant shall only receive a payout from the Plan to the extent such payout
is deemed necessary

 

13

 

by
the Senior Vice President of Human Resources or the Committee, as applicable,
to satisfy the Participant’s Unforeseeable Financial Emergency, plus amounts
reasonably necessary to pay taxes reasonably anticipated as a result of the
distribution. If a Participant receives a payout due to an Unforeseeable
Financial Emergency, such Participant’s deferrals under this Plan shall cease. The
Participant may not again elect to defer compensation until the enrollment
period for the Plan Year that begins at least 12 months after such payout (or
such later enrollment period, if required by Code Section 409A and other
applicable tax law).

 

(b)           The payout shall not exceed
the lesser of (i) the Participant’s vested Account Balance, calculated as of
the close of business on the date on which the amount becomes payable, as
determined by the Senior Vice President of Human Resources or Committee, as
applicable, or (ii) the amount necessary to satisfy the Unforeseeable Financial
Emergency, plus amounts reasonably necessary to pay taxes reasonably
anticipated as a result of the distribution. Notwithstanding the foregoing, a
Participant may not receive a payout from the Plan to the extent that the
Unforeseeable Financial Emergency is or may be relieved (A) through
reimbursement or compensation by insurance or otherwise, (B) by liquidation of
the Participant’s assets, to the extent the liquidation of such assets would
not itself cause severe financial hardship or (C) by suspension of deferrals
under this Plan, if the Senior Vice President of Human Resources or the
Committee, as applicable, determines that suspension is required by Code
Section 409A and other applicable tax law.

 

(c)           If the Senior Vice President
of Human Resources or the Committee, as applicable, approves a Participant’s
petition for payout, the Participant’s deferrals under this Plan shall be
suspended as of the date of such approval and the Participant shall receive a
payout from the Plan within 60 days of the date of such approval.

 

(d)           Notwithstanding the
foregoing, the Senior Vice President of Human Resources or the Committee, as
applicable, shall interpret all provisions relating to suspension and/or payout
under this Section 4.4 in a manner that is consistent with Code Section 409A
and other applicable tax law, including, but not limited to, guidance issued
after the effective date of this Plan.

 

ARTICLE 5

Retirement Benefit

 

5.1           Retirement
Benefit. A Participant who Retires shall receive, as a
Retirement Benefit, his or her vested Account Balance, calculated as of the
close of business on the Participant’s Benefit Distribution Date.

 

5.2           Payment of
Retirement Benefit.

 

(a)           In connection with a
Participant’s election to defer an Annual Deferral Amount, the Participant
shall elect the form in which his or her Annual Account for such Plan Year will
be paid. The Participant may elect to receive each Annual Account in the form
of a lump sum or pursuant to an Annual Installment Method of up to 15 years. The

 

14

 

Participant
may change this election one time by submitting an Election Form to the Company
in accordance with the following criteria:

 

(i)            The election to modify the
form of payment for such Annual Account shall have no effect until at least 12
months after the date on which the election is made;

 

(ii)           The first payment related to
such Annual Account shall be delayed at least five years from the originally
scheduled Benefit Distribution Date for such Annual Account, as described in
Section 1.9(a);

 

(iii)          Notwithstanding the
foregoing, the Company, the Committee and the Senior Vice President of Human
Resources, as applicable, shall interpret all provisions relating to changing
the Annual Account election under this Article 5 in a manner that is consistent
with Code Section 409A and other applicable tax law, including, but not limited
to, guidance issued after the effective date of this Plan.

 

The Election Form most
recently accepted by the Company shall govern the payout of the Annual Account.
If a Participant does not make any election with respect to the payment of the
Annual Account, then such Participant shall be deemed to have elected to
receive the Annual Account in a lump sum.

 

(b)           The lump sum payment shall
be made, or installment payments shall commence, no later than 60 days after
the Benefit Distribution Date. Remaining installments, if any, shall continue
in accordance with the Participant’s election for each Annual Account and shall
be paid no later than 60 days after each anniversary of the Benefit
Distribution Date.

 

(c)           Notwithstanding a
Participant’s election to receive payment of an Annual Account in installments,
if the Participant’s vested Account Balance, calculated as of the close of
business on the Participant’s Benefit Distribution Date (or on the immediately
preceding business day if such date is not a business day), is determined to
have a value of $25,000 or less, the Participant’s entire Account Balance shall
be paid in a single lump sum no later than 60 days after the Benefit
Distribution Date.

 

ARTICLE 6

Termination Benefit

 

6.1           Termination
Benefit.  A
Participant who experiences a Termination of Employment shall receive, as a
Termination Benefit, his or her vested Account Balance, calculated as of the
close of business on the Participant’s Benefit Distribution Date (or the first
anniversary thereof, in accordance with the Participant’s election below). If
the calculation date is not a business day, then such calculation shall be made
on the immediately preceding business day.

 

6.2           Payment of
Termination Benefit.  In
connection with a Participant’s election to defer an Annual Deferral Amount,
the Participant shall elect to receive each Annual Account in a lump sum
payment:  (i) no later than 60 days after
the last day of the six-month period immediately following the date on which
the Participant experiences a Termination of Employment or (ii) no later than
60 days after the first anniversary of such Termination of Employment. If a
Participant

 

15

 

does
not make any election with respect to the payment of the Annual Account, the
Annual Account shall be paid to the Participant no later than 60 days after the
last day of the six-month period immediately following the date on which the
Participant experiences a Termination of Employment.

 

ARTICLE 7

Disability Benefit

 

7.1           Disability
Benefit.  Upon a
Participant’s Disability, the Participant shall receive a Disability Benefit,
which shall be equal to the Participant’s vested Account Balance, calculated as
of the close of business on the Participant’s Benefit Distribution Date (or on
the immediately preceding business day if such date is not a business day).

 

7.2           Payment of
Disability Benefit.  The
Disability Benefit shall be paid to the Participant in a lump sum payment no
later than 60 days after the Participant’s Benefit Distribution Date.

 

ARTICLE 8

Death Benefit

 

8.1           Death
Benefit. The Participant’s Beneficiary(ies) shall receive a
Death Benefit upon the Participant’s death which will be equal to the
Participant’s vested Account Balance, calculated as of the close of business on
the Participant’s Benefit Distribution Date (or on the immediately preceding
business day if such date is not a business day).

 

8.2           Payment of
Death Benefit.  The Death Benefit shall be paid to
the Participant’s Beneficiary(ies) in a lump sum payment no later than 60 days
after the Participant’s Benefit Distribution Date.

 

ARTICLE 9

Form of Payment

 

9.1           Payment in
Cash or Common Stock. 
Payment of a Participant’s Annual Account shall be made in cash;
provided, however, that payment of the portion of the Participant’s Account Balance
attributable to the Participant’s Performance Share Account, if any, shall be
made, net of withholding taxes, exclusively in shares of the Company’s common
stock.

 

9.2           Relation to
Stock Incentive Plan. 
Benefits attributable to Performance Share Accounts which are paid in
shares of the Company’s common stock are subject to any applicable terms,
conditions and restrictions required by the applicable Company stock incentive
plan.

 

16

 

ARTICLE 10

Beneficiary Designation

 

10.1         Beneficiary. Each
Participant shall have the right, at any time, to designate his or her
Beneficiary(ies) (both primary as well as contingent) to receive any benefits
payable under the Plan to a beneficiary upon the death of a Participant. The
Beneficiary designated under this Plan may be the same as or different from the
Beneficiary designation under any other plan of an Employer in which the
Participant participates.

 

10.2         Beneficiary
Designation; Change; Spousal Consent.  A Participant shall designate his or her
Beneficiary by completing and signing the Beneficiary Designation Form, and
returning it to the Company. A Participant shall have the right to change a
Beneficiary by completing, signing and otherwise complying with the terms of
the Beneficiary Designation Form and the Company’s rules and procedures, as in
effect from time to time. If the Participant names someone other than his or
her spouse as a Beneficiary, the Senior Vice President of Human Resources may,
in his or her sole discretion, determine that spousal consent is required to be
provided in a form designated by the Senior Vice President of Human Resources,
executed by such Participant’s spouse and returned to the Company. Upon the
acceptance by the Company of a new Beneficiary Designation Form, all
Beneficiary designations previously filed shall be canceled. The Company shall
be entitled to rely on the last Beneficiary Designation Form filed by the
Participant and accepted by the Company prior to his or her death.

 

10.3         Acknowledgment.  No designation or change in designation of a
Beneficiary shall be effective until received and acknowledged in writing by
the Company.

 

10.4         No
Beneficiary Designation.   If a Participant fails to designate a
Beneficiary as provided in Sections 10.1, 10.2 and 10.3 above or, if all
designated Beneficiaries predecease the Participant or die prior to complete
distribution of the Participant’s benefits, then the Participant’s designated
Beneficiary shall be deemed to be his or her surviving spouse. If the
Participant has no surviving spouse, the benefits remaining under the Plan to
be paid to a Beneficiary shall be payable to the executor or personal
representative of the Participant’s estate.

 

10.5         Doubt as to
Beneficiary.   If the
Senior Vice President of Human Resources has any doubt as to the proper
Beneficiary to receive payments pursuant to this Plan, he or she shall have the
right, exercisable in his or her discretion, to cause the Participant’s
Employer to withhold such payments until this matter is resolved to his or her
satisfaction.

 

10.6         Discharge
of Obligations.  The payment
of benefits under the Plan to a Beneficiary shall fully and completely
discharge the Company, the Employer, the Committee and the Vice President of
Human Resources from all further obligations under this Plan with respect to
the Participant.

 

17

 

ARTICLE 11

Leave of Absence

 

11.1         Paid Leave
of Absence.  If a
Participant is authorized by the Participant’s Employer to take a paid leave of
absence from the employment of the Employer, (i) the Participant shall continue
to be considered eligible for the benefits provided in Articles 4, 5, 6, 7 or 8
in accordance with the provisions of those Articles, and (ii) the Annual Deferral
Amount  shall continue to be
withheld during such paid leave of absence in accordance with Section 3.3.

 

11.2         Unpaid
Leave of Absence.  If a
Participant is authorized by the Participant’s Employer to take an unpaid leave
of absence from the employment of the Employer for any reason, such Participant
shall continue to be eligible for the benefits provided in Articles 4, 5, 6, 7
or 8 in accordance with the provisions of those Articles. However, the
Participant shall be excused from fulfilling his or her Annual Deferral Amount
commitment that would otherwise have been withheld during the remainder of the
Plan Year in which the unpaid leave of absence is taken. During the unpaid
leave of absence, the Participant shall not be allowed to make any additional deferral
elections. However, if the Participant returns to employment, the Participant
may elect to defer an Annual Deferral Amount for the Plan Year following his or
her return to employment and for every Plan Year thereafter while a Participant
in the Plan, provided such deferral elections are otherwise allowed and an
Election Form is delivered to and accepted by the Company for each such
election in accordance with Section 3.3 above.

 

ARTICLE 12

Termination of Plan, Amendment or Modification

 

12.1         Termination
of Plan.  Although
the Company anticipates that it will continue the Plan for an indefinite period
of time, there is no guarantee that the Company will continue the Plan or will
not terminate the Plan at any time in the future. Accordingly, the Company
reserves the right to Terminate the Plan (as defined in Section 1.43). In the
event of a Termination of the Plan, the Measurement Funds available to
Participants following the Termination of the Plan shall be comparable in
number and type to those Measurement Funds available to Participants in the
Plan Year preceding the Plan Year in which the Termination of the Plan is
effective. Following a Termination of the Plan, Participant Account Balances
shall remain in the Plan until the Participant becomes eligible for the
benefits provided in Articles 4, 5, 6, 7 or 8 in accordance with the provisions
of those Articles. The Termination of the Plan shall not adversely affect any
Participant or Beneficiary who has become entitled to the payment of any
benefits under the Plan as of the date of termination; provided, however, the
Company shall have the right, in its sole discretion, and notwithstanding any
elections made by the Participant, to immediately pay all benefits in a lump
sum following such Termination of the Plan, if (i)(A) Termination is not
proximate to a downturn in the financial health of the Company, (B) the Company
terminates all arrangements required to be aggregated with the Plan pursuant to
Code Section 409A, (C) lump sum payments are made between 12 and 24 months
following Termination of the Plan, and (D) the Company does not establish a new
plan that would have been aggregated with the Plan for purposes of Code Section
409A within three years following Termination of the Plan, or (ii) Termination
is in connection with dissolution or change in control of the Company, or such
other circumstances permitted by applicable guidance, and in accordance with
such other

 

18

 

corresponding
conditions required by Code Section 409A and regulations or other guidance
issued thereunder.

 

12.2         Amendment.

 

(a)           The Committee may, at any
time, amend or modify the Plan in whole or in part. Notwithstanding the
foregoing, no amendment shall be effective to decrease the value of a
Participant’s vested Account Balance in existence at the time the amendment is
made. In no event shall the
Company, the Employer or the Committee be responsible for any decline in a
Participant’s Account Balance as a result of the selection, discontinuation,
addition, substitution, crediting or debiting of the Measurement Funds pursuant
to Section 3.9.

 

(b)           Notwithstanding any
provision of the Plan to the contrary, in the event that the Committee
determines that any provision of the Plan may cause amounts deferred under the
Plan to become immediately taxable to any Participant under Code Section 409A,
and related guidance, the Committee may (i) adopt such amendments to the Plan
and appropriate policies and procedures, including amendments and policies with
retroactive effect, that the Committee determines necessary or appropriate to
preserve the intended tax treatment of the Plan benefits provided by the Plan
and/or (ii) take such other actions as the Committee determines necessary or
appropriate to comply with the requirements of Code Section 409A, and related
guidance.

 

12.3         Effect of
Payment.  The full
payment of the Participant’s vested Account Balance under Articles 4, 5, 6, 7
or 8 of the Plan shall completely discharge all obligations to a Participant
and his or her designated Beneficiaries under this Plan.

 

ARTICLE 13

Administration

 

13.1         Committee
Duties.  Except as
otherwise provided in this Plan, this Plan shall be administered by the
Committee. The Committee shall also have the discretion and authority to (i)
make, amend, interpret and enforce all appropriate rules and regulations for
the administration of this Plan and (ii) decide or resolve any and all
questions including interpretations of this Plan, as may arise in connection
with the Plan. When making a determination or calculation, the Company,
Committee and the Senior Vice President of Human Resources, as applicable,
shall be entitled to rely on information furnished by a Participant.

 

13.2         Agents.  In the administration of this Plan, the Committee
may, from time to time, employ agents and delegate to them such administrative
duties as it sees fit (including acting through a duly appointed
representative) and may from time to time consult with counsel who may be
counsel to any Employer.

 

13.3         Binding
Effect of Decisions.  The
decision or action of the Administrator with respect to any question arising
out of or in connection with the administration, interpretation and application
of the Plan and the rules and regulations promulgated hereunder shall be final
and conclusive and binding upon all persons having any interest in the Plan.

 

19

 

13.4         Indemnity.  All Employers shall indemnify and hold
harmless the members of the Committee, the PIC, the PRC, the CEO, the Senior
Vice President of Human Resources, any Employee to whom duties have been or may
be delegated under this Plan, and the Administrator against any and all claims,
losses, damages, expenses or liabilities arising from any action or failure to
act with respect to this Plan, except in the case of an individual’s willful
misconduct.

 

13.5         Employer
Information.  To enable
the Committee and/or Administrator to perform its functions, the Company and
each Employer shall supply full and timely information to the Committee and/or
Administrator, as the case may be, on all matters relating to the compensation
of its Participants, the date and circumstances of the Retirement, Disability,
death or Termination of Employment of its Participants, and such other
pertinent information as the Committee or Administrator may reasonably require.

 

ARTICLE 14

Other Benefits and Agreements

 

14.1         Coordination
with Other Benefits.  The
benefits provided for a Participant and Participant’s Beneficiary under the
Plan are in addition to any other benefits available to such Participant under
any other plan or program for employees of the Participant’s Employer. The Plan
shall supplement and shall not supersede, modify or amend any other such plan
or program except as may otherwise be expressly provided.

 

ARTICLE 15

Claims Procedures

 

15.1         Presentation
of Claim.  Any
Participant or Beneficiary of a deceased Participant (such Participant or
Beneficiary being referred to below as a “Claimant”) may deliver to the PRC (or
in the case of a Section 16 Officer, the Committee) a written claim for a
determination with respect to the amounts distributable to such Claimant from
the Plan. If such a claim relates to the contents of a notice received by the
Claimant, the claim must be made within 60 days after such notice was received
by the Claimant. All other claims must be made within 180 days of the date on
which the event that caused the claim to arise occurred. The claim must state
with particularity the determination desired by the Claimant.

 

15.2         Notification
of Decision.  The PRC (or
in the case of a Section 16 Officer, the Committee) shall consider a Claimant’s
claim within a reasonable time, but no later than 90 days after receiving the
claim. If the PRC or the Committee, as applicable, determines that special
circumstances require an extension of time for processing the claim, written
notice of the extension shall be furnished to the Claimant prior to the
termination of the initial 90-day period. In no event shall such extension exceed
a period of 90 days from the end of the initial period. The extension notice
shall indicate the special circumstances requiring an extension of time and the
date by which the PRC or the Committee expects to render the benefit
determination. The PRC or the Committee, as applicable, shall notify the
Claimant in writing:

 

(a)           that the Claimant’s
requested determination has been made, and that the claim has been allowed in
full; or

 

20

 

(b)           that the PRC or the
Committee has reached a conclusion contrary, in whole or in part, to the
Claimant’s requested determination, and such notice must set forth in a manner
calculated to be understood by the Claimant:

 

(i)            the specific reason(s) for
the denial of the claim, or any part of it;

 

(ii)           specific reference(s) to
pertinent provisions of the Plan upon which such denial was based;

 

(iii)          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;

 

(iv)          an explanation of the claim
review procedure set forth in Section 15.3 below; and

 

(v)           a statement of the Claimant’s
right to bring a civil action under ERISA Section 502(a) following an adverse
benefit determination on review.

 

15.3         Review of a
Denied Claim.  On or
before 60 days after receiving a notice from the PRC (or in the case of a
Section 16 Officer, the Committee) that a claim has been denied, in whole or in
part, a Claimant (or the Claimant’s duly authorized representative) may file
with the PRC or the Committee, as applicable, a written request for a review of
the denial of the claim. The Claimant (or the Claimant’s duly authorized
representative):

 

(a)           may, upon request and free
of charge, have reasonable access to, and copies of, all documents, records and
other information relevant to the claim for benefits;

 

(b)           may submit written comments
or other documents; and/or

 

(c)           may request a hearing, which
the PRC or the Committee (as applicable), in its sole discretion, may grant.

 

15.4         Decision on
Review.  The PRC (or
in the case of a Section 16 Officer, the Committee) shall render its decision
on review promptly, and no later than 60 days after the receipt of the Claimant’s
written request for a review of the denial of the claim. If the PRC or the
Committee, as applicable, determines that special circumstances require an
extension of time for processing the claim, written notice of the extension
shall be furnished to the Claimant prior to the termination of the initial
60-day period. In no event shall such extension exceed a period of 60 days from
the end of the initial period. The extension notice shall indicate the special
circumstances requiring an extension of time and the date by which the PRC or the
Committee, as applicable, expects to render the benefit determination. In
rendering its decision, the PRC or the Committee, as applicable, shall take
into account all comments, documents, records and other information submitted
by the Claimant relating to the claim, without regard to whether such
information was submitted or considered in the initial benefit determination. The
decision must be written in a manner calculated to be understood by the
Claimant, and it must contain:

 

(a)           specific reasons for the
decision;

 

(b)           specific reference(s) to the
pertinent Plan provisions upon which the decision was based;

 

(c)           a statement that the
Claimant is entitled to receive, upon request and free of charge, reasonable
access to and copies of, all documents, records and other information relevant
(as defined in applicable ERISA regulations) to the Claimant’s claim for
benefits; and

 

21

 

(d)           a statement of the Claimant’s
right to bring a civil action under ERISA Section 502(a).

 

15.5         Legal
Action.  A Claimant’s
compliance with the foregoing provisions of this Article 15 is a mandatory
prerequisite to a Claimant’s right to commence any legal action with respect to
any claim for benefits under this Plan.  

 

15.6         Determinations.   Benefits
under the Plan will be paid only if the PRC (or in the case of a Section 16
Officer, the Committee) decides in its discretion that the applicant is
entitled to them. The PRC or the Committee, as applicable, has discretionary
authority to grant or deny benefits under the Plan. The PRC shall have the sole
discretion, authority and responsibility to interpret and construe this Plan
Statement and all relevant documents and information, and to determine all
factual and legal questions under the Plan, in relation to a person’s (other
than a Section 16 Officer) claim for benefits. The Committee shall have the
sole discretion, authority and responsibility to interpret and construe this
Plan Statement and all relevant documents and information, and to determine all
factual and legal questions under the Plan, including, but not limited to, the
entitlement of all persons to benefits and the amounts of their benefits. The
Committee’s discretionary authority shall include all matters arising under the
Plan.

 

ARTICLE 16

Trust

 

16.1         Establishment
of the Trust.  In order to
provide assets from which to fulfill the obligations of the Participants and
their beneficiaries under the Plan, the Company may establish a trust by a
trust agreement with a third party, the trustee, to which each Employer may, in
its discretion, contribute cash or other property to provide for the benefit
payments under the Plan, (the “Trust”).

 

16.2         Interrelationship
of the Plan and the Trust.  The provisions of the Plan shall govern the
rights of a Participant to receive distributions pursuant to the Plan. The
provisions of the Trust shall govern the rights of the Employers, Participants
and the creditors of the Company to the assets transferred to the Trust. The
Company shall at all times remain liable to carry out its obligations under the
Plan.

 

16.3         Distributions
From the Trust.  The Company’s
obligations under the Plan may be satisfied with Trust assets distributed
pursuant to the terms of the Trust, and any such distribution shall reduce the
Company’s obligations under this Plan.

 

ARTICLE 17

Miscellaneous

 

17.1         Status of
Plan. The Plan is intended to be a plan that is not qualified within the
meaning of Code Section 401(a) and that “is unfunded and is maintained by an
employer primarily for the purpose of providing deferred compensation for a
select group of management or highly compensated employees” within the meaning
of ERISA Sections 201(2), 301(a)(3) and 401(a)(1). The Plan shall be
administered and interpreted (i) to the extent possible in a manner consistent
with that intent and (ii) in accordance with Code Section 409A and other
applicable

 

22

 

tax
law, including, but not limited to, Treasury Regulations promulgated pursuant
to Code Section 409A.

 

17.2         Unsecured
General Creditor. 
Participants and their Beneficiaries, heirs, successors and assigns
shall have no legal or equitable rights, interests or claims in any property or
assets of the Company. For purposes of the payment of benefits under this Plan,
any and all of the Company’s assets shall be, and remain, the general,
unpledged unrestricted assets of the Company. The Company’s obligation under
the Plan shall be merely that of an unfunded and unsecured promise to pay money
in the future.

 

17.3         Employer’s
Liability.  The Company’s
liability for the payment of benefits shall be defined only by the Plan. The
Company shall have no obligation to a Participant under the Plan except as
expressly provided in the Plan.

 

17.4         Nonassignability.  Neither a Participant nor any other person
shall have any right to commute, sell, assign, transfer, pledge, anticipate,
mortgage or otherwise encumber, transfer, hypothecate, alienate or convey in
advance of actual receipt, the amounts, if any, payable hereunder, or any part
thereof, which are, and all rights to which are expressly declared to be,
unassignable and non-transferable. No part of the amounts payable shall, prior
to actual payment, be subject to seizure, attachment, garnishment or sequestration
for the payment of any debts, judgments, alimony or separate maintenance owed
by a Participant or any other person, be transferable by operation of law in
the event of a Participant’s or any other person’s bankruptcy or insolvency or
be transferable to a spouse as a result of a property settlement or otherwise
(including without limitation any domestic relations order, whether or not a “qualified
domestic relations order” under section 414(p) of the Code and section 206(d)
of ERISA) before the Account Balance is distributed to the Participant or
Beneficiary.

 

17.5         Not a
Contract of Employment.  The terms and conditions of this Plan shall
not be deemed to constitute a contract of employment between the Company or any
Employer and the Participant. Such employment is hereby acknowledged to be an “at
will” employment relationship that can be terminated at any time for any
reason, or no reason, with or without cause, and with or without notice, unless
expressly provided in a written employment agreement. Nothing in this Plan
shall be deemed to give a Participant the right to be retained in the service
of the Company or any Employer or to interfere with the right of the Company or
any Employer to discipline or discharge the Participant at any time.

 

17.6         Furnishing
Information.   A
Participant or his or her Beneficiary will cooperate with the Company by
furnishing any and all information requested by the Company and take such other
actions as may be requested in order to facilitate the administration of the Plan
and the payments of benefits hereunder, including, but not limited to, taking
such physical examinations as the Company may deem necessary.

 

17.7         Terms.  Whenever any words are used herein in the
singular or in the plural, they shall be construed as though they were used in
the plural or the singular, as the case may be, in all cases where they would
so apply.

 

17.8         Captions.  The captions of the articles, sections and
paragraphs of this Plan are for convenience only and shall not control or
affect the meaning or construction of any of its provisions.

 

23

 

17.9         Governing
Law.  Subject to ERISA, the
provisions of this Plan shall be construed and interpreted according to the
internal laws of the State of Minnesota without regard to its conflicts of laws
principles.

 

17.10       Notice.  Any notice or filing required or permitted to
be given to the Company under this Plan shall be sufficient if in writing and
hand-delivered, or sent by registered or certified mail, to the address below: 

 

	
  ALLIANT TECHSYSTEMS INC.

  
	
  Attn: ATK Executive Compensation Department

  
	
  5050 Lincoln Drive, MN01-3020

  
	
  Edina, MN 55436

  

 

Such
notice shall be deemed given as of the date of delivery or, if delivery is made
by mail, as of the date shown on the postmark on the receipt for registration
or certification.

 

Any
notice or filing required or permitted to be given to a Participant under this
Plan shall be sufficient if in writing and hand-delivered, or sent by mail, to
the last known address of the Participant.

 

17.11       Successors.  The provisions of this Plan shall bind and
inure to the benefit of the Company and its successors and assigns and the
Participant and the Participant’s designated Beneficiaries.

 

17.12       Spouse’s
Interest. The interest in the benefits hereunder of a spouse
of a Participant who has predeceased the Participant shall automatically pass
to the Participant and shall not be transferable by such spouse in any manner, including,
but not limited to, such spouse’s will, nor shall such interest pass under the
laws of intestate succession.

 

17.13       Validity.  In case any provision of this Plan shall be
illegal or invalid for any reason, said illegality or invalidity shall not
affect the remaining parts hereof, but this Plan shall be construed and
enforced as if such illegal or invalid provision had never been inserted
herein.

 

17.14       Incompetent.  If the Senior Vice President of Human
Resources determines in its discretion that a benefit under this Plan is to be
paid to a minor, a person declared incompetent or to a person incapable of
handling the disposition of that person’s property, he or she may direct
payment of such benefit to the guardian, legal representative or person having
the care and custody of such minor, incompetent or incapable person. The Senior
Vice President of Human Resources may require proof of minority, incompetence,
incapacity or guardianship, as it may deem appropriate prior to distribution of
the benefit. Any payment of a benefit shall be a payment for the account of the
Participant and the Participant’s Beneficiary, as the case may be, and shall be
a complete discharge of any liability under the Plan for such payment amount.

 

24

 

17.15       Deduction
Limitation on Benefit Payments. The Company may determine
that as a result of the application of the limitation under Code Section
162(m), a distribution payable to a Participant pursuant to this Plan would not
be deductible if such distribution were made at the time required by the Plan. If
the Company makes such a determination, then the distribution shall not be paid
to the Participant until such time as the distribution first becomes deductible.
The amount of the distribution shall continue to be adjusted in accordance with
Section 3.9 above until it is distributed to the Participant. The amount of the
distribution, plus amounts credited or debited thereon, shall be paid to the
Participant or his or her Beneficiary (in the event of the Participant’s death)
at the earliest possible date, as determined by the Company, on which the
deductibility of compensation paid or payable to the Participant for the
taxable year of the Company during which the distribution is made will not be
limited by Section 162(m). Notwithstanding the foregoing, the Committee shall
interpret this provision in a manner that is consistent with Code Section 409A
and other applicable tax law, including, but not limited to, guidance issued
after the effective date of this Plan.

 

17.16       Insurance. The Company, on
its own behalf or on behalf of the trustee of the Trust, and, in its sole
discretion, may apply for and procure insurance on the life of the Participant,
in such amounts and in such forms as the Trust may choose. The Company or the
trustee of the Trust, as the case may be, shall be the sole owner and
beneficiary of any such insurance. The Participant shall have no interest
whatsoever in any such policy or policies, and at the request of the Company
shall submit to medical examinations and supply such information and execute
such documents as may be required by the insurance company or companies to whom
the Company has applied for insurance.

 

25

APPENDIX A

 

ALLIANT
TECHSYSTEMS INC.

NONQUALIFIED DEFERRED COMPENSATION PLAN 

(As Amended and
Restated March 18, 2003)

 

 

ALLIANT
TECHSYSTEMS INC.

NONQUALIFIED DEFERRED COMPENSATION PLAN 

TABLE OF
CONTENTS 

 

	
  SECTION 1.

  	
  INTRODUCTION AND
  DEFINITIONS

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  1.1.

  	
  Statement of Plan

  	
   

  
	
   

  	
  1.2.

  	
  Definitions

  	
   

  
	
   

  	
   

  	
  1.2.1.

  	
  Account

  	
   

  
	
   

  	
   

  	
  1.2.2.

  	
  Affiliate

  	
   

  
	
   

  	
   

  	
  1.2.3.

  	
  Annual Performance Shares
  Amount

  	
   

  
	
   

  	
   

  	
  1.2.4.

  	
  Annual Restricted Stock
  Amount

  	
   

  
	
   

  	
   

  	
  1.2.6.

  	
  ATK

  	
   

  
	
   

  	
   

  	
  1.2.7.

  	
  Beneficiary

  	
   

  
	
   

  	
   

  	
  1.2.8.

  	
  Board of Directors

  	
   

  
	
   

  	
   

  	
  1.2.9

  	
  Bonus Plan

  	
   

  
	
   

  	
   

  	
  1.2.10.

  	
  CEO

  	
   

  
	
   

  	
   

  	
  1.2.11.

  	
  Change of Control

  	
   

  
	
   

  	
   

  	
  1.2.12.

  	
  Code

  	
   

  
	
   

  	
   

  	
  1.2.13.

  	
  Committee

  	
   

  
	
   

  	
   

  	
  1.2.14.

  	
  CVA

  	
   

  
	
   

  	
   

  	
  1.2.16.

  	
  Employers

  	
   

  
	
   

  	
   

  	
  1.2.17.

  	
  ERISA

  	
   

  
	
   

  	
   

  	
  1.2.18.

  	
  Measuring Investments

  	
   

  
	
   

  	
   

  	
  1.2.19.

  	
  Participant

  	
   

  
	
   

  	
   

  	
  1.2.20.

  	
  Plan

  	
   

  
	
   

  	
   

  	
  1.2.21.

  	
  Plan Statement

  	
   

  
	
   

  	
   

  	
  1.2.22.

  	
  Plan Year

  	
   

  
	
   

  	
   

  	
  1.2.23.

  	
  Section 16 Officer

  	
   

  
	
   

  	
   

  	
  1.2.24.

  	
  Termination of Employment

  	
   

  
	
   

  	
   

  	
  1.2.25.

  	
  Valuation Date

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 2.

  	
  PARTICIPATION

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  2.1.

  	
  Eligibility

  	
   

  
	
   

  	
   

  	
  2.1.1.

  	
  Eligibility to Participate

  	
   

  
	
   

  	
   

  	
  2.1.2.

  	
  Determination of
  Eligibility

  	
   

  
	
   

  	
  2.2.

  	
  Participation

  	
   

  	
   

  

 

i

 

	
  SECTION 3.

  	
  CREDITS TO ACCOUNTS

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  3.1.

  	
  Voluntary Deferrals from
  Salary

  	
   

  
	
   

  	
   

  	
  3.1.1.

  	
  Amount of Deferrals

  	
   

  
	
   

  	
   

  	
  3.1.2.

  	
  Crediting to Accounts

  	
   

  
	
   

  	
   

  	
  3.1.3.

  	
  Restriction on Measuring
  Investments

  	
   

  
	
   

  	
  3.2.

  	
  Voluntary Deferrals from
  Bonuses

  	
   

  
	
   

  	
   

  	
  3.2.1.

  	
  Amount of Bonus Plan
  Deferrals

  	
   

  
	
   

  	
   

  	
  3.2.2.

  	
  Crediting Bonus Plan
  Deferrals to Accounts

  	
   

  
	
   

  	
   

  	
  3.2.3.

  	
  Amount of CVA Deferrals

  	
   

  
	
   

  	
   

  	
  3.2.4.

  	
  Crediting CVA Deferrals to
  Accounts

  	
   

  
	
   

  	
  3.3.

  	
  Section 401(k) Plan
  Supplement

  	
   

  
	
   

  	
   

  	
  3.3.1.

  	
  Amount of Supplement

  	
   

  
	
   

  	
   

  	
  3.3.2.

  	
  Crediting to Accounts

  	
   

  
	
   

  	
  3.4.

  	
  Employer Discretionary
  Supplements

  	
   

  
	
   

  	
  3.5.

  	
  Deferral of Performance
  Shares

  	
   

  
	
   

  	
   

  	
  3.5.1.

  	
  Performance Share Account

  	
   

  
	
   

  	
   

  	
  3.5.2.

  	
  Performance Share Deferral
  Election

  	
   

  
	
   

  	
   

  	
  3.5.3.

  	
  Adjustment of Annual
  Performance Shares Amount

  	
   

  
	
   

  	
  3.6.

  	
  Deferral of Restricted Stock

  	
   

  
	
   

  	
   

  	
  3.6.1.

  	
  Restricted Stock Account

  	
   

  
	
   

  	
   

  	
  3.6.2.

  	
  Restricted Stock Deferral
  Election

  	
   

  
	
   

  	
   

  	
  3.6.3.

  	
  Adjustment of Annual
  Restricted Stock Amount

  	
   

  
	
   

  	
  3.7.

  	
  Transfer Amounts

  	
   

  
	
   

  	
   

  	
  3.7.1.

  	
  Transfer Accounts

  	
   

  
	
   

  	
   

  	
  3.7.2.

  	
  Distribution of Transfer
  Amounts

  	
   

  
	
   

  	
   

  	
  3.7.3.

  	
  Restrictions and
  Limitations

  	
   

  
	
   

  	
  3.8.

  	
  Measuring Investments

  	
   

  
	
   

  	
   

  	
  3.8.1.

  	
  Restricted Bonus Measuring
  Investments

  	
   

  
	
   

  	
   

  	
  3.8.2.

  	
  Rules Regarding
  Measuring Investments

  	
   

  
	
   

  	
  3.9.

  	
  Operational Rules for
  Deferrals

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 4.

  	
  ADJUSTMENT OF ACCOUNTS

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  4.1.

  	
  Establishment of Accounts

  	
   

  
	
   

  	
  4.2.

  	
  Accounting Rules

  	
   

  
	
   

  	
  4.3.

  	
  Reallocation of Amounts

  	
   

  
	
   

  	
  4.4.

  	
  ATK Common Stock Measuring
  Investment

  	
   

  
	
   

  	
  4.5.

  	
  Hypothetical Account

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 5.

  	
  VESTING OF ACCOUNTS

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 6.

  	
  SPENDTHRIFT PROVISION

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  6.1.

  	
  Anti-alienation

  	
   

  
	
   

  	
  6.2.

  	
  Designation of Beneficiary

  	
   

  

 

ii

 

	
  SECTION 7.

  	
  DISTRIBUTIONS

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  7.1.

  	
  Time of Distribution

  	
   

  
	
   

  	
   

  	
  7.1.1.

  	
  Application for
  Distribution

  	
   

  
	
   

  	
   

  	
  7.1.2.

  	
  Section 162(m)
  Determination

  	
   

  
	
   

  	
  7.2.

  	
  Form of Distribution

  	
   

  
	
   

  	
  7.3.

  	
  Election of Time and Form of
  Distribution

  	
   

  
	
   

  	
  7.4.

  	
  Payment to Beneficiary

  	
   

  
	
   

  	
   

  	
  7.4.1.

  	
  Payment to Beneficiary for
  Death After Termination of Employment

  	
   

  
	
   

  	
   

  	
  7.4.2.

  	
  Payment to Beneficiary for
  Death Before Termination of Employment

  	
   

  
	
   

  	
  7.5.

  	
  Designation of Beneficiaries

  	
   

  
	
   

  	
   

  	
  7.5.1.

  	
  Right to Designate

  	
   

  
	
   

  	
   

  	
  7.5.2.

  	
  Spousal Consent

  	
   

  
	
   

  	
   

  	
  7.5.3.

  	
  Failure of Designation

  	
   

  
	
   

  	
   

  	
  7.5.4.

  	
  Disclaimers by
  Beneficiaries

  	
   

  
	
   

  	
   

  	
  7.5.5.

  	
  Definitions

  	
   

  
	
   

  	
   

  	
  7.5.6.

  	
  Special Rules

  	
   

  
	
   

  	
  7.6.

  	
  Death Prior to Full
  Distribution

  	
   

  
	
   

  	
  7.7.

  	
  Facility of Payment

  	
   

  
	
   

  	
  7.8.

  	
  In-Service Distributions

  	
   

  
	
   

  	
   

  	
  7.8.1.

  	
  Pre-Selected In-Service
  Distributions

  	
   

  
	
   

  	
   

  	
  7.8.2.

  	
  On Demand In-Service
  Distributions

  	
   

  
	
   

  	
   

  	
  7.8.3.

  	
  In-Service Distribution
  for Financial Hardship

  	
   

  
	
   

  	
  7.9.

  	
  Effect of Disability

  	
   

  
	
   

  	
  7.10.

  	
  Distributions in Cash

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 8.

  	
  FUNDING OF PLAN

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  8.1.

  	
  Unfunded and Unsecured Plan

  	
   

  
	
   

  	
  8.2.

  	
  Corporate Obligation

  	
   

  
	
   

  	
  8.3.

  	
  The Trust

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 9.

  	
  AMENDMENT AND
  TERMINATION

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  9.1.

  	
  Amendment and Termination

  	
   

  
	
   

  	
  9.2.

  	
  No Oral Amendments

  	
   

  
	
   

  	
  9.3.

  	
  Plan Binding on Successors

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 10.

  	
  DETERMINATIONS,
  RULES AND REGULATIONS

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  10.1.

  	
  Determinations

  	
   

  
	
   

  	
  10.2.

  	
  Rules and Regulations

  	
   

  
	
   

  	
  10.3.

  	
  Method of Executing
  Instruments

  	
   

  
	
   

  	
  10.4.

  	
  Claims Procedure

  	
   

  
	
   

  	
   

  	
  10.4.1.

  	
  Original Claim

  	
   

  
	
   

  	
   

  	
  10.4.2.

  	
  Review of Denied Claim

  	
   

  
	
   

  	
   

  	
  10.4.3.

  	
  General Rules

  	
   

  
	
   

  	
   

  	
  10.4.4.

  	
  Disability Claims

  	
   

  
	
   

  	
  10.5.

  	
  Limitations and Exhaustion

  	
   

  
	
   

  	
   

  	
  10.5.1.

  	
  Limitations

  	
   

  
	
   

  	
   

  	
  10.5.2.

  	
  Exhaustion Required

  	
   

  

 

iii

 

	
  SECTION 11.

  	
  PLAN ADMINISTRATION

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  11.1.

  	
  Officers

  	
   

  
	
   

  	
  11.2.

  	
  Chief Executive Officer

  	
   

  
	
   

  	
  11.3.

  	
  Board of Directors

  	
   

  
	
   

  	
  11.4.

  	
  Committee

  	
   

  
	
   

  	
  11.5.

  	
  Delegation

  	
   

  
	
   

  	
  11.6.

  	
  Conflict of Interest

  	
   

  
	
   

  	
  11.7.

  	
  Administrator

  	
   

  
	
   

  	
  11.8.

  	
  Service of Process

  	
   

  
	
   

  	
  11.9.

  	
  Expenses

  	
   

  
	
   

  	
  11.10.

  	
  Tax Withholding

  	
   

  
	
   

  	
  11.11.

  	
  Certifications

  	
   

  
	
   

  	
  11.12.

  	
  Errors in Computations

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 12.

  	
  CONSTRUCTION

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  12.1.

  	
  Applicable Laws

  	
   

  
	
   

  	
   

  	
  12.1.1.

  	
  ERISA Status

  	
   

  
	
   

  	
   

  	
  12.1.2.

  	
  IRC Status

  	
   

  
	
   

  	
   

  	
  12.1.3.

  	
  References to Laws

  	
   

  
	
   

  	
  12.2.

  	
  Effect on Other Plans

  	
   

  
	
   

  	
  12.3.

  	
  Disqualification

  	
   

  
	
   

  	
  12.4.

  	
  Rules of Document
  Construction

  	
   

  
	
   

  	
  12.5.

  	
  Choice of Law

  	
   

  
	
   

  	
  12.6.

  	
  No Employment Contract

  	
   

  

 

iv

 

ALLIANT
TECHSYSTEMS INC.

NONQUALIFIED DEFERRED COMPENSATION PLAN

 

SECTION 1 

INTRODUCTION AND DEFINITIONS

 

1.1.    Statement
of Plan.    Effective January 1, 2003,
ALLIANT TECHSYSTEMS INC., a Delaware corporation (hereinafter sometimes
referred to as “ATK”) and certain affiliated business entities (together with
ATK hereinafter sometimes collectively referred to as “Employer(s)”)
implemented a nonqualified, unfunded, deferred compensation plan for the
benefit of a select group of management and highly compensated employees of the
Employers, which deferred compensation plan is hereby amended and restated
effective as of March 18, 2003.

 

1.2.    Definitions.    When
the following terms are used herein with initial capital letters, they shall
have the following meanings:

 

1.2.1.    Account—the separate bookkeeping account
representing the separate unfunded and unsecured general obligation of the
Employers established with respect to each person who is a Participant in this
Plan in accordance with Section 2 and to which is credited the dollar
amounts or units of ATK common stock specified in Section 3 and Section 4
and from which are subtracted payments or distributions made pursuant to Section 7.

 

1.2.2.    Affiliate—a business entity which is
affiliated in ownership with ATK or an Employer and is recognized as an
Affiliate by the Committee for purposes of this Plan.

 

1.2.3.    Annual Performance Shares Amount—shall
mean, with respect to an eligible Participant for each Plan Year, the amount of
performance shares deferred in accordance with Section 3.5 of this Plan,
determined by the number of performance shares that would otherwise vest based
upon the satisfaction of the objectives and requirements for the performance
shares, but for the election to defer. In the event of a Participant’s
disability (if deferrals cease in accordance with the terms of the Plan), death
or a Termination of Employment prior to the end of a Plan Year, the Annual
Performance Shares Amount for that Plan Year shall be the actual amount credited
to the Account (or a sub-account) of the Participant prior to such event.

 

1.2.4.    Annual Restricted Stock Amount—shall mean,
with respect to a Participant for each Plan Year, the amount of restricted
stock deferred in accordance with Section 3.6 of this Plan, determined by
the number of shares of restricted stock that would otherwise vest, but for the
election to defer. In the event of a Participant’s disability (if deferrals
cease in accordance with the terms of the Plan), death or a Termination of
Employment prior to the end of a Plan Year, the Annual Restricted Stock Amount
for that Plan Year shall be the actual amount credited to the Account (or a
sub-account) of the Participant prior to such event.

 

1.2.5.    ATK—ALLIANT TECHSYSTEMS INC., a Delaware
corporation, or any successor thereto.

 

1.2.6.    Beneficiary—a person designated by a
Participant (or automatically by operation of the Plan Statement) to receive
all or a part of the Participant’s Account in the event of the Participant’s
death prior to full distribution thereof. A person so designated shall not be
considered a Beneficiary until the death of the Participant.

 

1.2.7.    Board of Directors—the Board of Directors
of ATK or its successor. “Board of Directors” shall also mean and refer to any
properly authorized committee of the Board of Directors.

 

1

 

1.2.8.    Bonus Plan—an annual cash bonus program
maintained by the Employers, including, without limitation, the Management
Compensation Plan, the Executive Incentive Plan and the Management Incentive
Plan, and any comparable or successor plan.

 

1.2.9.    CEO—the Chief Executive Officer of ATK or
his or her delegee for Plan purposes.

 

1.2.10.    Change of Control—shall mean the occurrence
of any of the following:

 

(a)   The acquisition by any person, entity or “group,”
within the meaning of Section 13(d)(3) or Section 14(d)(2) of
the Securities Exchange Act of 1934 (excluding for this purpose, any employee
benefit plan of ATK or any of its “subsidiaries” which acquires beneficial
ownership of voting securities of ATK), of beneficial ownership (within the
meaning of Rule 13d-3 under the Securities Exchange Act of 1934) of fifty
percent (50%) or more of either the then outstanding shares of stock or the
combined voting power of then outstanding voting securities of ATK, in one
transaction or a series of transactions; or

 

(b)   Individuals who, as of January 1, 2003,
constituted the Board of Directors (the “Continuing Directors”) cease for any
reason to constitute at least a majority of the Board of Directors without the
affirmative consent and approval of the Continuing Directors, provided that any
person becoming a director of ATK subsequent to January 1, 2003, whose
election, or nomination for election by the stockholders of ATK, was approved
by a vote of at least a majority of the Continuing Directors (other than an
election or nomination of an individual whose initial assumption of office
occurs as a result of an actual or threatened election contest with respect to
the election or removal of directors of ATK or other actual or threatened
solicitation of proxies or consents by or on behalf of a person, entity or “group,”
within the meaning of Section 13(d)(3) or Section 14(d)(2) of
the Securities Exchange Act of 1934, other than the Board of Directors) shall
be, for purposes of the Plan, considered as though such person were a
Continuing Director; or

 

(c)   (i) the occurrence of a merger, consolidation
or reorganization of ATK in which, as a consequence of the transaction, no
affirmative consent and approval of the Continuing Directors is obtained, and
either the Continuing Directors do not constitute a majority of the directors
of the continuing or surviving corporation or any person, entity or “group,”
within the meaning of Section 13(d)(3) or Section 14(d)(2) of
the Securities Exchange Act of 1934, controls fifty percent (50%) or more of
the combined voting power of the continuing or surviving corporation; (ii) the
occurrence of any sale, lease or other transfer, in one transaction or a series
of transactions, of all or substantially all of the assets of ATK (at least
80%); or (iii) the adoption by ATK of a plan for its liquidation or
dissolution.

 

(d)   For purposes of this definition of “Change of
Control,” the term “subsidiary” shall mean any corporation, the majority of the
outstanding voting stock of which is owned, directly or indirectly, by ATK.

 

1.2.11.    Code—the Internal Revenue Code of 1986, as
amended.

 

1.2.12.    Committee—the Personnel and Compensation
Committee (also known as the “P&C”) of the Board of Directors consisting
solely of two or more Non-Employee Directors, appointed by and serving at the
pleasure of the Board of Directors (as defined in Rule 16b-3 promulgated
under Section 16 of the Securities and Exchange Act of 1934).

 

1.2.13.    CVA—the Cash Value Added Incentive Program
of the Employers and any comparable successor plan.

 

1.2.14.    Employers—ATK, and its successors, and any
business entity affiliated with ATK (and its successors) that employs persons
who are designated for participation in this Plan.

 

2

 

1.2.15.    ERISA—the Employee Retirement Income
Security Act of 1974, as amended.

 

1.2.16.    Measuring Investments—the hypothetical
investments in various investment funds designated by the Committee and in ATK
common stock for the purpose of measuring the value of the benefit that may be
payable under the Plan.

 

1.2.17.    Participant—an employee of an Employer who
is designated as or determined to be eligible to participate in this Plan in
accordance with the provisions of Section 2 and who has elected to defer
compensation under Section 3. An employee who has become a Participant
shall be considered to continue as a Participant in this Plan until the date of
the Participant’s death or, if earlier, the date when the Participant no longer
has any Account under this Plan (that is, the Participant has received a
distribution of all of the amounts credited to the Account of the Participant).

 

1.2.18.    Plan—the nonqualified, unfunded, deferred
compensation program maintained by the Employers for the benefit of
Participants eligible to participate therein, as set forth in the Plan
Statement. (As used herein, “Plan” does not refer to the document pursuant to
which this Plan is maintained, that document is referred to herein as the “Plan
Statement”.) The Plan shall be referred to as the “Alliant
Techsystems Inc. Nonqualified Deferred Compensation Plan.”

 

1.2.19.    Plan Statement—this document entitled “Alliant
Techsystems Inc. Nonqualified Deferred Compensation Plan” as adopted by
the Board of Directors effective as of January 1, 2003, as the same may be
amended from time to time thereafter.

 

1.2.20.    Plan Year—the twelve (12) consecutive
month period that begins on January 1 and ends on December 31 of each
year.

 

1.2.21.    Section 16 Officer—an officer of an
Employer who is subject to the provisions of Section 16 of the Securities
Exchange Act of 1934, as amended.

 

1.2.22.    Termination of Employment—a complete
severance of an employment relationship of an employee with the Employers and
all Affiliates, for any reason other than the employee’s death. A transfer from
employment with an Employer to employment with an Affiliate of an Employer
shall not constitute a Termination of Employment. If an Employer who is an
Affiliate ceases to be an Affiliate because of a sale of substantially all the
stock or assets of the Employer, then Participants who are employed by that
Employer and who cease to be employed by ATK or an Employer on account of the
sale of substantially all the stock or assets of the Employer shall be deemed
to have thereby had a Termination of Employment for the purpose of commencing
distributions from this Plan.

 

1.2.23.    Valuation Date—the last business day of
each calendar month, and any other date designated by the Committee or in the
Plan.

 

SECTION 2

PARTICIPATION

 

2.1.    Eligibility.

 

2.1.1.    Eligibility to Participate.    Eligibility
to participate in the Plan shall be limited to only the following
classifications of employees: (i) any employee of an Employer who is
eligible to participate in a Bonus Plan and who is selected for participation
in this Plan by the CEO (or any person authorized to act on behalf of the CEO
by the Committee) and, with respect to any Section 16 Officer, is selected
for participation in this Plan by the Committee; and (ii) any employee who
is an active participant in the Alliant Techsystems Inc. Management
Deferred Compensation Plan who elects, effective as of January 1, 2003, to
cease participation in that plan, resulting in the termination of salary and
bonus deferral elections made in accordance with that

 

3

 

plan
by the participant and the cessation of amounts credited to any account of the
participant under that plan, and to participate in this Plan. Subject to Section 2.2
of the Plan, such an eligible employee shall be eligible to become a
Participant as of the day designated by the CEO or, with respect to Section 16
Officers, the Committee (or, if the CEO or the Committee does not designate a
day of initial participation, as of the first day of the next following Plan
Year). The CEO shall not select any employee for participation unless the CEO
determines that such employee is a member of a select group of management or
highly compensated employees (as that phrase has been interpreted under ERISA).
The Committee may at any time determine that a Participant is no longer eligible
to make voluntary deferrals from salary under Section 3.1, or Bonus Plan
cash payments or CVA amounts under Section 3.2, or to defer any
performance shares under Section 3.5, or restricted stock under Section 3.6.
The Committee also may determine that a Participant is not eligible for the
credits for the Section 401(k) Plan Supplement under Section 3.3 for
any Plan Year at any time before such credits have actually been made.

 

2.1.2.    Determination of Eligibility.    The
determinations made by the CEO and the Committee pursuant to Section 2.1.1
with respect to eligibility to participate in the Plan shall be conclusive and
binding on all parties. Furthermore, the CEO or, with respect to Section 16
Officers, the Committee may in its discretion determine that a Participant who
performs or who has performed services to or with respect to an Employer is no
longer eligible to develop benefits under the Plan. In such event, any benefits
payable to the Participant under the Plan will be determined as of the date such
Participant ceased such eligibility and will be distributable in accordance
with Section 7 of the Plan.

 

2.2.    Participation.    An
employee determined to be eligible to participate in the Plan under Section 2.1
shall become a Participant as of the date determined under Section 2.1
provided, however, that such employee files with the Committee a completed
deferral election form in accordance with the requirements of Section 3 of
the Plan electing to participate in the Plan. Subject to the provisions of the
Plan, once an employee becomes a Participant in the Plan, the employee shall
remain a Participant until his or her death or, if earlier, the date on which
occurs a distributable event under Section 7 of the Plan and the benefits
which may be payable to the employee under the Plan have been distributed to or
on behalf of the employee.

 

SECTION 3 

CREDITS TO ACCOUNTS

 

3.1.    Voluntary
Deferrals from Salary.

 

3.1.1.    Amount of Deferrals.    For
each Plan Year, on forms furnished and approved by and subsequently filed with
the Committee, an eligible Participant may elect to defer up to seventy percent
(70%), expressed in whole percent increments, of such Participant’s base salary
that would otherwise have been payable to the Participant during the following
Plan Year. The Committee may establish prospectively other limits or other pay
eligible for deferral. To be effective for a Plan Year, the election form must
be received by the Committee before the first day of such Plan Year. For a
newly eligible Participant, however, if the form is received by the Committee
within 30 days after the first day of such eligibility, deferral shall be
effective as of the first day of the month following such receipt.
Notwithstanding the foregoing, for the year in which the Plan is first
implemented, the Plan Year beginning January 1, 2003, and ending December 31,
2003, an eligible Participant may elect to defer up to seventy percent (70%),
expressed in whole percent increments, of such Participant’s base salary for
services to be performed for that period by completing the form and submitting
the form to the Committee on or before December 31, 2002.

 

3.1.2.    Crediting to Accounts.    The
Committee shall cause to be credited to the Account of each Participant the
amount, if any, of such Participant’s voluntary deferrals of salary or other
pay

 

4

 

under
Section 3.1.1. Such amount shall be credited to the Account as of a date
on which such salary or other pay would otherwise have been payable to the
Participant.

 

3.1.3.    Restriction on Measuring Investments.    If
a Participant elects to defer any base salary pursuant to this Section 3.1,
then, notwithstanding any provision in this Plan to the contrary, the
Participant shall be permitted to allocate amounts credited to Participant’s
Account (or any sub-account) to the Measuring Investments made available under
the Plan for purposes of measuring the value of the Participant’s Account (or
any sub-accounts), provided, however,
that the Participant shall not be permitted to allocate amounts attributable to
base salary to the ATK common stock Measuring Investment, except upon a
subsequent reallocation of the amounts attributable to base salary held in the
Account in compliance with the terms and conditions set forth in Sections 4.3
and 4.4 of this Plan.

 

3.2.    Voluntary
Deferrals from Bonus Plan.

 

3.2.1.    Amount of Bonus Plan Deferrals.    Each
Plan Year, on forms approved and furnished by, and subsequently filed with the
Committee, an eligible Participant may elect to defer (a) up to one
hundred percent (100%) of such Participant’s Bonus Plan cash payment up to and
including the target Bonus Plan cash payment expressed in whole percent
increments up to one hundred percent (100%), and (b) up to one hundred
percent (100%) of such Participant’s Bonus Plan cash payment above such target
expressed in whole percent increments up to one hundred percent (100%). The
Committee may establish prospectively other limits or other bonuses eligible
for deferral. An election by the Participant to defer any such Bonus Plan cash
payments that would otherwise be payable under the Bonus Plan must be made, and
the form on which the election is made must be received by the Committee,
before the first day of October of the Plan Year in which occurs the first
day of the fiscal year of the Employer for which such Bonus Plan cash payments
are determined. Such a deferral election is irrevocable and must be made in the
form and manner prescribed by the Committee and will be given effect even if
the Participant incurs a Termination of Employment prior to the date such Bonus
Plan cash payment would otherwise be payable, but for the election to defer
such payment, provided that the Account or a sub-account established on behalf
of the Participant under the Plan exists to which such deferred amount may be
credited. Notwithstanding the foregoing, for the year in which the Plan is
first implemented, the Plan Year beginning January 1, 2003, and ending December 31,
2003, and, with respect to certain eligible employees who elect to participate
in this Plan and cease participation in the Alliant Techsystems Inc.
Management Deferred Compensation Plan, in recognition of the termination of
rights under the Alliant Techsystems Inc. Management Deferred Compensation
Plan with respect to such Participants, an eligible Participant may elect to
defer such Bonus Plan cash payments as permitted under this Section 3.2.1
for services performed for the fiscal year of an Employer that ends as of March 31,
2003, for which such Bonus Plan cash payments are determinable and payable,
provided that: (a) such election is made by December 11, 2002, (b) such
Bonus Plan cash payments have not yet become due and fully ascertainable, and (c) such
Bonus Plan cash payments would not otherwise be payable until May 2003.
Notwithstanding the foregoing, the amount of any deferral may not exceed the
gross amount of the Bonus Plan cash payment payable to the Participant reduced
by any tax required to be withheld from such amount under sections 3101(a) and
(b), 3121 and 3306 of the Code or any state or local statute.

 

5

 

3.2.2.    Crediting Bonus Plan Deferrals to Accounts.    The
Committee shall cause to be credited to the Account of each Participant the
amount, if any, of such Participant’s voluntary deferrals of a bonus amount
otherwise payable as a Bonus Plan cash payment but for the election to defer
under Section 3.2.1. The value to be credited to the Account shall be
determined as of the date that the Committee determines and approves the Bonus
Plan amount payable, based on the closing values of the applicable Measuring
Investments on that date, provided, however, that such value shall not be
credited to Participant’s Account until the date the Bonus Plan amount would
otherwise have been payable to the Participant. The Participant shall, pursuant
to Section 4, be permitted to request to allocate or reallocate the amount
deferred under Section 3.2.1 and credited to his or her Account under this
Section 3.2.2 among one or more Measuring Investments, including the ATK
common stock Measuring Investment and the “restricted bonus sub-account”
Measuring Investment pursuant to and in accordance with Sections 3.8 and
4.4 of this Plan.

 

3.2.3.    Amount of CVA Deferrals.    Each
Plan Year, on forms approved and furnished by and subsequently filed with the
Committee, an eligible Participant may elect to defer up to one hundred percent
(100%), expressed in whole percent increments, of such amount that may be
payable to the Participant under the CVA pursuant to the terms and conditions
of the CVA. The amount that would otherwise be payable to the Participant under
the CVA for any year, but for the election to defer under this Plan, shall be
determined in accordance with the terms and conditions of the CVA for that
year. The Committee may establish prospectively other limits or other CVA
amounts eligible for deferral. An election by the Participant to defer any such
CVA amount that would otherwise be payable under the CVA must be made, and the
form on which the election is made must be received by the Committee, before
the first day of October of such Plan Year in which occurs the first day
of the fiscal year of the Employer for which such CVA amount is determined.
Such a deferral election is irrevocable and must be made in the form and manner
prescribed by the Committee and will be given effect even if the Participant
incurs a Termination of Employment prior to the date such CVA amount would
otherwise be payable, but for the election to defer such amount, provided that
the Account or a sub-account established on behalf of the Participant under the
Plan exists to which such deferred amount may be credited. Notwithstanding the
foregoing, the amount of any deferral may not exceed the gross amount of the
CVA payment payable to the Participant reduced by any tax required to be
withheld from such amount under sections 3101(a) and (b), 3121 and
3306 of the Code or any state or local statute.

 

3.2.4.    Crediting CVA Deferrals to
Accounts.    The Committee shall cause to be
credited to the Account of each Participant the amount, if any, of such
Participant’s voluntary deferrals of an amount otherwise payable as a CVA
payment but for the election to defer under Section 3.2.3. The value to be
credited to the Account shall be determined as of the date that the Committee
determines and approves the CVA amount payable, based on the closing values of
the applicable Measuring Investments on that date, provided, however, that such
value shall not be credited to Participant’s Account until the date the CVA
amount would otherwise have been payable to the Participant. The Participant
shall, pursuant to Section 4, be permitted to request to allocate or reallocate
the amounts deferred under Section 3.2.3 and credited to his or her
Account under this Section 3.2.4 among one or more Measuring Investments,
including the ATK common stock Measuring Investment pursuant to and in
accordance with Sections 3.8 and 4.4 of this Plan.

 

3.3.    Section 401(k)
Plan Supplement.

 

3.3.1.    Amount of Supplement.    The
Committee shall determine annually, beginning with the year in which the Plan
is first implemented, the Plan Year beginning January 1, 2003, and ending December 31,
2003, for each Participant who is also a participant in a Section 401(k)
plan sponsored by an Employer the amount, if any, of such lost share of
matching contributions (but not elective deferral contributions) under such Section 401(k)
plan attributable to such

 

6

 

Participant’s
voluntary deferrals under Sections 3.1 and 3.2 of this Plan that would
otherwise have been allocated to the account of the Participant under that Section 401(k)
plan. Such determination shall be made after the end of each plan year of such Section 401(k)
plan during which the Participant made voluntary deferrals under this Plan.

 

3.3.2.    Crediting to Accounts.    The
Committee shall cause to be credited to the Account of each Participant the
amount, if any, determined under Section 3.3.1. Such amount shall be
credited as of the last day of the plan year of such Section 401(k) plan
or, if that day is not a business day, the next following business day.

 

3.4.    Employer
Discretionary Supplements.    Upon written
notice to one or more Participants and to the Committee, the CEO (or, for any Section 16
Officer, the Committee) may (but is not required to) determine that additional
amounts shall be credited to the Accounts of such Participants. Such notice
shall specify the amounts to be credited to the Accounts of such Participants
and shall specify the date or dates on which such amounts shall be credited to
such Accounts. Notwithstanding Section 5, such notice may also establish
vesting rules for such amounts, in which case separate Accounts shall be
established for such Participants.

 

3.5.    Deferral
of Performance Shares.    Pursuant to the
requirements and the conditions of this Section 3.5, an eligible
Participant may elect to defer one hundred percent (100%), but not less than
one hundred percent (100%), of the value of the number of performance shares
that would otherwise have been delivered to the Participant based upon the
terms and conditions for the delivery of such shares under the applicable ATK
stock incentive plan, but for the election to defer the value of such shares
pursuant to this Section 3.5 (the Annual Performance Shares Amount). If an
eligible Participant makes an election pursuant to this Section 3.5 to
defer an Annual Performance Shares Amount, such amount shall be allocated to
the ATK common stock Measuring Investment as of the date on which such
performance shares would otherwise have vested under the applicable ATK stock
incentive plan, and shall be measured by the value of ATK common stock, and the
Participant’s Account or sub-account shall be credited with the number of units
(including fractions thereof) equal to the number of shares (including
fractions thereof) of common stock that would have otherwise been delivered to
the Participant. Each unit credited to the ATK common stock Measuring
Investment shall be measured by the value of one share of common stock and
treated as though invested in a share of common stock. Notwithstanding the
foregoing, the value of any deferral may not exceed the gross amount of the
value of performance shares that would otherwise have been delivered to the
Participant, reduced by any amounts or performance shares that are used to
satisfy any tax required to be withheld from such value under
sections 3101(a) and (b), 3121 and 3306 of the Code or any state or
local statute.

 

3.5.1.    Performance Share Account.    For
purposes of this Section 3.5, “performance share account” shall mean the
aggregate value, measured on any particular date, of: (i) the value of the
number of performance shares deferred by a Participant equal to the cumulative
Annual Performance Shares Amounts, plus (ii) the value of the number of
additional shares credited as a result of the deemed reinvestment of cash dividends,
if any, paid on ATK’s common stock in accordance with all of the applicable
crediting provisions of the ATK common stock Measuring Investment that relate
to the Participant’s performance share account, reduced by (iii) the value
of the number of performance shares allocated to this performance share account
previously distributed to the Participant or his or her Beneficiary pursuant to
this Plan, subject in each case to any adjustments to the value of the number
of such performance shares determined by the Committee with respect to the ATK
common stock Measuring Investment pursuant to this Section 3.5 and the
Plan. The amount deferred under this Section 3.5 shall be credited to the
Participant’s Account or a sub-account established under the Account of the
Participant and shall be initially allocated to the ATK common stock Measuring
Investment and shall be treated as though it were invested in ATK common stock
and valued accordingly. The Participant shall,

 

7

 

pursuant
to Section 4, be permitted to request to reallocate the amount (the value
of the performance shares) deferred under Section 3.5 and credited to the
performance share account among one or more Measuring Investments pursuant to
and in accordance with Sections 3.8 and 4.4 of the Plan.

 

3.5.2.    Performance Share Deferral
Election.    For an election to defer
performance shares to be valid: (i) a separate irrevocable election form
approved by the Committee must be completed and signed by the Participant, with
respect to such performance shares, which must provide for the cancellation of
such performance shares under the applicable stock incentive plan of ATK, and (ii) such
election form must be timely delivered to the Committee and accepted by the
Committee at least twelve (12) complete months prior to the date on which
such performance shares would otherwise vest based upon the satisfaction of the
objectives and requirements for the performance shares to vest under the terms
and conditions of the applicable ATK stock incentive plan, but for the election
to defer. A deferral election under this Section 3.5 is irrevocable and
must be made in the form and manner as provided under this Section 3.5,
and will be given effect even if the Participant incurs a Termination of
Employment prior to the date such performance shares would otherwise have been
delivered to the Participant, but for the election to defer such performance
shares, provided that the Account or a sub-account established on behalf of the
Participant under the Plan exists to which the value of such performance shares
may be credited.

 

3.5.3.    Adjustment of Annual
Performance Shares Amount.    Subject to any
terms and conditions imposed by the Committee, the Annual Performance Share Amount
shall include the value of the amount of performance shares the payment of
which has been unilaterally deferred by the Employer, by action of the
Committee, to increase the probability that such payment would be fully
deductible for federal or state income tax purposes if such payment were made,
but for such deferral. The value of any performance shares deferred under this Section 3.5
shall, at the time the performance shares would otherwise have vested under the
terms of an ATK stock incentive plan, but for the deferral, be credited to the
Account of the Participant as of the date on which such performance shares
would otherwise have vested under the terms of the applicable ATK stock
incentive plan.

 

3.6.    Deferral
of Restricted Stock.    Pursuant to the
requirements and the conditions of this Section 3.6, an eligible
Participant may elect to defer one hundred percent (100%), but not less than
one hundred percent (100%), of the value of the number of shares of restricted
stock that would otherwise have been delivered to the Participant under the
terms of the applicable ATK stock incentive plan, but for the election to defer
such value (the Annual Restricted Stock Amount). If an eligible Participant
makes an election pursuant to this Section 3.6 to defer an Annual
Restricted Stock Amount, such amount shall be allocated to the ATK common stock
Measuring Investment as of the date on which such shares of restricted stock
would otherwise have vested under the applicable ATK stock incentive plan, and
shall be measured by the value of ATK common stock, and the Participant’s
Account or sub-account shall be credited with the number of units (including
fractions thereof) equal to the number of shares (including fractions thereof)
of common stock for which the deferral election was made. Each unit credited to
the ATK common stock Measuring Investment shall be measured by the value of one
share of common stock and treated as though invested in a share of common
stock. Notwithstanding the foregoing, the value of any deferral may not exceed
the gross amount of the value of restricted stock that would otherwise have
vested in the Participant reduced by any amounts or shares of restricted stock
that are used to satisfy any tax required to be withheld from such value under
sections 3101(a) and (b), 3121 and 3306 of the Code or any state or
local statute.

 

3.6.1.    Restricted Stock Account.    For
purposes of this Section 3.6, “restricted stock account” shall mean the
aggregate value, measured on any particular date, of: (i) the value of the
number of shares of restricted stock deferred by a Participant equal to the
cumulative Annual Restricted Stock Amounts, plus (ii) the value of the
number of additional shares credited as a result of the

 

8

 

deemed
reinvestment of cash dividends, if any, paid on ATK’s common stock in
accordance with all of the applicable crediting provisions of the ATK common
stock Measuring Investment that relate to the Participant’s restricted stock
account, reduced by (iii) the value of the number of shares of restricted
stock allocated to this restricted stock account previously distributed to the
Participant or his or her Beneficiary pursuant to this Plan, subject in each
case to any adjustments to the value of the number of such shares determined by
the Committee with respect to the ATK common stock Measuring Investment
pursuant to this Section 3.6 and the Plan. The amount deferred under this Section 3.6
shall be credited to the Participant’s Account or a sub-account established
under the Account of the Participant and shall be initially allocated to the
ATK common stock Measuring Investment and shall be treated as though it were
invested in ATK common stock and valued accordingly. The Participant shall, pursuant
to Section 4, be permitted to request to reallocate the amount (the value
of the restricted stock) deferred under Section 3.6 and credited to the
restricted stock account among one or more Measuring Investments, pursuant to
and in accordance with Sections 3.8 and 4.4 of the Plan.

 

3.6.2.    Restricted Stock Deferral
Election.    For an election to defer restricted
stock to be valid: (i) a separate irrevocable election form approved by
the Committee must be completed and signed by the Participant with respect to
such restricted stock, which must provide for the forfeiture of the shares of
restricted stock and the transfer to and reacquisition by ATK of the portion of
the unvested shares of restricted stock subject to the election that do not
provide for accelerated vesting based on any measure of personal performance
(other than continued employment) or the performance of ATK; (ii) such
election form must be timely delivered to the Committee and accepted by the
Committee at least twelve (12) complete months prior to the date on which
such restricted stock would otherwise vest under the terms of the applicable
ATK stock incentive plan; and (iii) the Participant must tender the
restricted stock which is the subject of the deferral election back to ATK for
cancellation of such restricted stock immediately upon such an election to
defer such restricted stock, and no election form will be accepted without such
tender of such restricted stock. A deferral election under this Section 3.6
is irrevocable and must be made in the form and manner as provided under this Section 3.6,
and will be given effect even if the Participant incurs a Termination of
Employment prior to the date such restricted stock would otherwise have vested
in the Participant, but for the election to defer such restricted stock,
provided that the Account or a sub-account established on behalf of the
Participant under the Plan exists to which the value of such restricted stock
may be credited.

 

3.6.3.    Adjustment of Annual
Restricted Stock Amount.    Subject to any terms
and conditions imposed by the Committee, the Annual Restricted Stock Amount for
the Participant for a Plan Year shall be required to include the value of the
amount of restricted stock the payment of which has been unilaterally deferred
by the Employer, by action of the Committee, to increase the probability that
such payment would be fully deductible for federal or state income tax purposes
if such payment were made, but for such deferral. The value of any restricted
stock deferred under this Section 3.6 shall, at the time the restricted
stock would otherwise have vested under the terms of an ATK stock incentive
plan, but for the deferral, be credited to the Account of the Participant as of
the date on which such restricted stock would otherwise have vested under the
terms of the applicable ATK stock incentive plan.

 

3.7.    Transfer
Amounts.    If a participant in the Alliant
Techsystems Inc. Management Deferred Compensation Plan elects to cease to
participate in that plan and to participate in this Plan pursuant to Section 2
of this Plan, effective as of January 1, 2003, the Participant’s elections
to defer salary and bonus amounts that were made under that plan and in effect
at the time of such election to cease to participate in that plan and to
participate in this Plan shall terminate, effective as of January 1, 2003,
and no additional amounts shall be credited to such Participant’s account or
accounts under that plan

 

9

 

as of the effective date of such election to cease
to participate in that plan and to participate in this Plan.

 

3.7.1.    Transfer Accounts.    Upon
such Participant’s election to cease to participate in the Alliant
Techsystems Inc. Management Deferred Compensation Plan and to participate
in this Plan, the amounts credited to the account or accounts of that
participant under the Alliant Techsystems Inc. Management Deferred
Compensation Plan shall be transferred to and credited to the Account or
Accounts or any sub-account of the Participant under the Plan and shall be
subject to the terms and conditions of this Plan. The value of the benefits
that were payable to such participant under the Alliant Techsystems Inc.
Management Deferred Compensation Plan shall, after such transfer and credit to
such Account, Accounts or sub-accounts under this Plan, be determined, except
as otherwise provided under this Section 3.7, valued and payable under
this Plan and no benefit shall be determined, valued or payable to or with respect
to that participant under the Alliant Techsystems Inc. Management Deferred
Compensation Plan, and all rights under the Alliant Techsystems Inc.
Management Deferred Compensation Plan shall be waived by that participant and
forfeited.

 

3.7.2.    Distribution of Transfer
Amounts.    Except as otherwise provided under
this Section 3.7, distributions of amounts so credited to the Account,
Accounts or sub-accounts of that participant under this Plan shall be governed
by the terms and conditions of this Plan; provided, however, subject to such
terms and conditions as determined by ATK, distributions currently in effect
pursuant to an election made under the Alliant Techsystems Inc. Management
Deferred Compensation Plan shall continue to be made in accordance with that
election as if no amounts were transferred or credited to Accounts under this
Plan for purposes of such distributions.

 

3.7.3.    Restrictions and Limitations.    Notwithstanding
any provision in this Section 3.7 or the Plan to the contrary, if a Participant
in this Plan had made an in-service distribution election under the Alliant
Techsystems Inc. Management Deferred Compensation Plan and such election
was in effect at the time of the Participant’s election to cease to participate
in that plan, that in-service distribution election shall be treated and given
effect as an in-service distribution election under this Plan made in
accordance with the provisions of this Plan, except, however, that such
in-service distribution shall be made in accordance with the election made
under the Alliant Techsystems Inc. Management Deferred Compensation Plan
as if no transfer of such amount to this Plan had occurred. Furthermore, any
amount allocated by a Participant to the “restricted bonus account” under the
Alliant Techsystems Inc. Management Deferred Compensation Plan at the time
of the Participant’s election to cease to participate in that plan shall be
allocated to a “restricted bonus sub-account” Measuring Investment established
under this Plan and such amount shall continue to be subject to the
restrictions and limitations applicable to that amount as if no transfer of
such amount to this Plan had occurred. Any amount allocated by a Participant to
the deemed (but not actual) investment in the common stock of ATK and valued as
if so invested under the Alliant Techsystems Inc. Management Deferred
Compensation Plan at the time of the Participant’s election to cease to
participate in that plan shall be allocated to the ATK common stock Measuring
Investment established under this Plan and such amount shall be subject to the
provisions of this Plan and such other terms and conditions as determined by
ATK to satisfy any applicable requirements of the Sarbanes-Oxley Act of 2002,
including any applicable requirements regarding notice of blackout periods
pursuant to the Act and the guidance issued by the Department of Labor under section 2520.101-3
of the Department of Labor Regulations.

 

10

 

3.8.    Measuring
Investments.    The Accounts (and any
sub-accounts) and Measuring Investments are specified solely as a device for
computing the amount of benefits to be paid by the Employers under this Plan,
and the Employers are not required to purchase such investments. The Measuring
Investments available for election by Participants shall include deemed (but
not actual) investment in investment funds made available by the Employers and,
the value of the common stock of ATK, valued at the closing price of ATK common
stock as reported on the New York Stock Exchange composite tape on the date
when such amounts are effectively credited to the ATK common stock Measuring
Investment pursuant to this Plan, except as specifically provided in
Sections 3.2.2 and 3.2.4. No initial deferral amounts may be measured or
valued by the value of ATK common stock other than amounts deferred under (i) Section 3.2
regarding Bonus Plan cash payments and CVA payments, (ii) Section 3.5
regarding Annual Performance Shares Amounts, or (iii) Section 3.6
regarding Annual Restricted Stock Amounts. Other amounts may be reallocated to
the ATK common stock Measuring Investment in compliance with Section 4.4
hereof.

 

3.8.1.    Restricted Bonus Measuring
Investment.    Subject to and pursuant to any
conditions and limitations established by the Committee, the value of Bonus
Plan cash payments deferred in accordance with Section 3.2.1 and 3.2.2 may
be deferred to a “restricted bonus sub-account” Measuring Investment. If such a
deferral is made to the “restricted bonus sub-account” Measuring Investment,
the sub-account shall be credited, in accordance with Section 3.2.2, with
that number of units (including fractions thereof) equal to the number of
shares (including fractions thereof) of ATK common stock that could have been
purchased with the dollar amount of such allocated amount based upon ninety
percent (90%) of the closing price as reported on the New York Stock Exchange,
as of the date specified in Section 3.2.2 of this Plan. (For example, if a
Participant elected to defer 100% of a Bonus Plan cash payment, which was equal
to $30,000 (as reduced for any required tax withholding), and elected to
allocate the value of such deferral to the “restricted bonus sub-account”
Measuring Investment, and the price per share of ATK common stock was
determined to be $60, the sub-account would be credited with 555.55 units
valued at $33,333 ($30,000 ÷ (.90 × $60) = 555.55
units)). Any amounts so allocated to the “restricted bonus sub-account”
Measuring Investment shall be restricted from any reallocation to any other
Measuring Investment available under the Plan for twelve (12) consecutive
months beginning as of the date on which such amounts are so allocated. Any
such allocation to the “restricted bonus sub-account” Measuring Investment
shall be irrevocable during the twelve consecutive month period and shall be
subject to any applicable state or federal securities laws including any
applicable reporting requirements. As of the end of such twelve consecutive
month period, the units so allocated to such “restricted bonus sub-account”
Measuring Investment shall be allocated to the ATK common stock Measuring
Investment.

 

3.8.2.    Rules Regarding Measuring
Investments.    The Committee shall determine
additional Measuring Investments and the rules for the implementation of
this Section 3.8 (including rules for designating and changing
Measuring Investments).

 

3.9.    Operational
Rules for Deferrals.    A Participant’s
election to defer under Section 3.1 shall be “evergreen” (that is, it shall
remain in effect for such Plan Year and, unless timely revised by the
Participant for a later Plan Year before the beginning of such Plan Year, for
all later Plan Years). If a Participant’s compensation after deferrals is not
sufficient to cover tax or other payroll withholding requirements, the
Committee shall reduce the Participant’s deferrals to the extent necessary to
cover such requirements.

 

11

 

SECTION 4 

ADJUSTMENT OF ACCOUNTS

 

4.1.    Establishment
of Accounts.    There shall be established for
each Participant an unfunded, bookkeeping Account that shall be adjusted each
business day.

 

4.2.    Accounting
Rules.    The Committee may adopt (and revise)
accounting rules for the Accounts (but such rules shall not change
the dates on which any amounts deferred under this Plan are effectively
credited to a Measuring Investment).

 

4.3.    Reallocation
of Amounts.    Except with regard to the ATK
common stock Measuring Investment, which is subject to Section 4.4 of the
Plan, and pursuant to any terms, conditions or rules established by the
Committee, a Participant may request on a daily basis to have the amounts
credited to the Account (or any sub-account) under the Plan reallocated among
one or more Measuring Investments valued at the closing value for such
Measuring Investments on the effective date of such reallocation. The
Participant’s reallocation requests must be in writing (which may be in an
electronic format) on an election form (which may be in an electronic format)
approved by the Committee, and in one percent (1%) increments. The portion of
any Account (or sub-account) allocated to a Measuring Investment shall be
deemed to be invested in such Measuring Investment, reflecting all earnings,
losses and other distributions or charges and changes in value which would have
been incurred through such an investment. The Committee specifically reserves
the authority and right to determine which Measuring Investment if any, to make
available, and the continued availability of selected Measuring Investment.

 

4.4.    ATK
Common Stock Measuring Investment.    If the
Committee permits amounts to be measured by the value of ATK common stock,
then, subject to any other rules or requirements established by the Committee
and subject to applicable accounting rules, and any applicable state and
federal securities laws and reporting requirements, the requirements of this Section 4.4
shall apply.

 

(a)   Common Stock.    A
Participant may elect to have the amounts credited to his or her Account or
Accounts (or sub-account or sub-accounts) allocated or reallocated to or from
the ATK common stock Measuring Investment. Except as specifically set out in
Sections 3.2, 3.5, or 3.6, such elections may only be made quarterly by filing
with the Committee an election, on forms approved and furnished by the
Committee, to make such an allocation or reallocation, during the election period
consisting of the 12 consecutive business days immediately following the public
release of ATK’s financial results for that fiscal quarter for which an
election is made (for purposes of this Section 4.4 defined as a “Quarterly
Election Period”). If such an election is made, the ATK common stock Measuring
Investment shall be credited with, or reduced by, as determined by the election
made, that number of units (including fractions thereof) equal to the number of
shares (including fractions thereof) of ATK common stock that could have been
purchased, or sold, as determined by the election made, with the dollar amount
of such allocated or reallocated amount determined as of the date of such
election during the Quarterly Election Period at the stock price per share
based upon the closing price as reported on the New York Stock Exchange for
such date. During each Quarterly Election Period, Participant may make one or
more elections to allocate or reallocate the amounts credited to his or her
Account or Accounts (or sub-account or sub-accounts) to or from the ATK common
stock Measuring Investment, provided, however, that a Participant may not
allocate or reallocate both in to and out of the ATK common stock Measuring
Investment during the same Quarterly Election Period. Each unit of the ATK
common stock Measuring Investment shall be measured by the value of one share
of stock and treated as though invested in a share of stock.

 

(b)   Cash Dividends.    Amounts
measured by the value of ATK common stock shall be credited on any cash
dividend payment date with that number of units equal to the number of

 

12

 

shares
which could have been purchased on the dividend payment date, based upon the
closing price of ATK common stock as reported on the New York Stock Exchange
for such date, with the value of the cash dividends paid on shares of stock
equal to the number of units credited to the Account as of the record date for
such dividend.

 

(c)   Stock Dividends.    The
number of units credited to the Account shall be adjusted to reflect any change
in the outstanding ATK common stock by reason of any stock dividend or split,
recapitalization, merger, consolidation, combination or exchange of shares or
other similar corporate change.

 

(d)   Voting of Common
Stock.    No Participant or Beneficiary shall be
entitled to any voting rights with respect to any units credited to the
Account.

 

4.5.    Hypothetical
Account.    The Account established under this
Plan, including any sub-accounts established under this Plan, shall be
hypothetical in nature and shall be maintained for bookkeeping purposes only.
Neither the Plan nor any Account or sub-accounts established under the Plan
shall hold or be required to hold any actual funds or assets.

 

SECTION 5

VESTING OF ACCOUNTS

 

The Account, and any other
Accounts or sub-accounts established under the Account, of each Participant
shall be fully (100%) vested and nonforfeitable at all times (except for early
distribution penalties described in Section 7), which, for purposes of the
Plan, determines the Participant’s interest in the benefit described under the
Plan that may be payable to or with respect to the Participant in accordance
with and subject to the terms of the Plan.

 

SECTION 6

 

SPENDTHRIFT PROVISION

 

6.1.    Anti-alienation.    No
Participant or Beneficiary shall have any interest in the Account or any
sub-account which can be transferred nor shall any Participant or Beneficiary
have any power to anticipate, alienate, dispose of, pledge or encumber the same
while in the possession or control of the Employers, nor shall the Committee
recognize any assignment thereof, either in whole or in part, nor shall the
Account be subject to attachment, garnishment, execution following judgment or
other legal process before the Account is distributed to the Participant or
Beneficiary.

 

6.2.    Designation
of Beneficiary.    The power to designate
Beneficiaries to receive the Account or any sub-account of a Participant in the
event of such Participant’s death shall not permit or be construed to permit
such power or right to be exercised by the Participant so as thereby to
anticipate, pledge, mortgage or encumber such Participant’s Account or any part
thereof and any attempt of a Participant to so exercise said power in violation
of this provision shall be of no force and effect and shall be disregarded by
the Committee.

 

SECTION 7

DISTRIBUTIONS

 

7.1.    Time of
Distribution.    Except as otherwise provided in
this Section 7, a Participant’s Account, and all sub-accounts (reduced by
the amount of any applicable payroll, withholding and other taxes), shall be
distributable upon the Termination of Employment of the Participant. The amount
of such distribution shall be determined as of the Valuation Date immediately
following the Termination of Employment and shall be actually paid (or, in the
case of installments, commenced) by the Employers as soon as practicable after
such determination (but in no event later than 90 days after

 

13

 

such Valuation Date); provided, however, that if the
Participant has so elected as described in Section 7.3, the amount of such
distribution shall instead be determined as of the Valuation Date that is
twelve (12) months after the Valuation Date immediately following the
Termination of Employment or as of the Valuation Date that is sixty
(60) months after the Valuation Date immediately following the Termination
of Employment and shall be actually paid (or, in the case of installments,
commenced) by the Employers as soon as practicable after such determination.

 

7.1.1.    Application for Distribution.    A
Participant shall not be required to make application to receive payment.
Distribution shall not be made to any Beneficiary, however, until such
Beneficiary shall have filed a written application for benefits in a form
acceptable to the Committee and such application shall have been approved by
the Committee.

 

7.1.2.    Section 162(m) Determination.    If
the Committee determines that delaying the time that initial payments are made
or commenced would increase the probability that such payments would be fully
deductible for federal or state income tax purposes, the Employers may
unilaterally delay the time of the making or commencement of payments for up to
twenty-four (24) months after the date such payments would otherwise be payable.

 

7.2.    Form of
Distribution.    Distribution of the Participant’s
Account shall be made as follows:

 

(a)   Lump Sum.    Unless
the Participant qualifies to receive installments as permitted by Section 7.2(b),
distribution of all benefits payable to the Participant under the Plan shall be
made in the form of a single lump sum.

 

(b)   Installments.

 

(i)  Eligibility for
Installments for Participants Who Have Attained Age Fifty-Five (55).    A
Participant’s Account, including any sub-accounts, shall be distributed in the
form of a series of annual installments not to exceed fifteen (15) annual
installments if, and only if, the Participant has satisfied the following
conditions: (a) the Participant, at Termination of Employment, has
attained age fifty-five (55) and has at least five (5) years of
continuous service with the Employers or one or more Affiliates, (b) the
Participant has made an election to receive distribution of the Account,
including any sub-accounts, in annual installments as described in Section 7.3,
and (c) the Participant has elected the number of annual installments to
be made.

 

(ii)  Eligibility for
Installments for Participants Who Have Not Attained Age Fifty-Five (55).    A
Participant’s Account, including any sub-accounts, shall be distributed in the
form of a series of annual installments not to exceed five (5) annual
installments if, and only if, the Participant has satisfied the following
conditions: (a) the Participant, at Termination of Employment, has not yet
attained age fifty-five (55), but has at least five (5) years of
continuous service with the Employers or one or more Affiliates, (b) the
Participant has made an election to receive distribution of the Account,
including any sub-accounts, in annual installments as described in Section 7.3,
and (c) the Participant has elected the number of annual installments to
be made.

 

(iii)  Time and Amount of
Installments.    The amount of each annual
installment shall be determined, as of the Valuation Date coincident with or
next following each annual installment, by dividing the amount of the Account,
including all sub-accounts, as of such Valuation Date by the number of
remaining installment payments to be made (including the payment being
determined). After the first installment, the amount of future installments
will be determined as of each following December 31 (beginning with the December 31
immediately following the first installment). Such installments shall be
actually paid as soon as practicable after each such determination.

 

14

 

(iv)  Request for Lump Sum
Payment.    On forms furnished by and filed with
the Committee, a Participant who is receiving installments may elect to receive
the total remaining balance of the Account and all sub-accounts (but not part
thereof) for any reason, provided that the Account balance will be reduced by a
penalty of ten percent (10%), with the result that the Participant will receive
ninety percent (90%) of the Account balance and ten percent (10%) of the
Account balance will be forfeited to the Employers. The amount of such
distribution will be determined as of the Valuation Date coincident with or
next following receipt of the request by the Committee and shall be actually
paid by the Employers to the Participant as soon as practicable after such
determination.

 

7.3.    Election
of Time and Form of Distribution.    On
forms furnished by and filed with the Committee, each Participant shall elect
at the time of initial enrollment:

 

(a)   whether the amount of the distribution to be made
(or, in the case of installments, commenced) shall be determined either (i) as
of the Valuation Date immediately following Termination of Employment, (ii) as
of the Valuation Date that is twelve (12) months after the Valuation Date
immediately following Termination of Employment, or (iii) as of the
Valuation Date that is sixty (60) months after the Valuation Date
immediately following Termination of Employment, and

 

(b)   whether distribution shall be made (i) in a
lump sum, or (ii) in annual installments if the Participant so qualifies
as described in Section 7.2(b).

 

On forms furnished by and
filed with the Committee, such elections may be changed by the Participant,
provided that:

 

(a)   no change shall be effective until twelve
(12) months after it is received by the Committee, and

 

(b)   no change may be filed within twelve
(12) months after the initial election (or, if one or more prior changes
has been filed, within twelve (12) months after the latest of such changes
was filed).

 

No spouse, former spouse,
Beneficiary or other person shall have any right to participate in the
Participant’s election to revise distribution elections.

 

7.4.    Payment
to Beneficiary.

 

7.4.1.    Payment to Beneficiary for Death After Termination of
Employment.    If a Participant dies after a
Termination of Employment, the benefit payable under the Plan based upon the
balance remaining of the amounts credited to the Participant’s Account,
including all sub-accounts, shall be payable to the Beneficiary of the
Participant in the form of a lump sum payment as soon as administratively
possible following such Participant’s death.

 

7.4.2.    Payment to Beneficiary for Death Before Termination of
Employment.    If a Participant dies before
Termination of Employment, the benefit payable under the Plan based upon the
Participant’s Account, including all sub-accounts, shall be payable to the
Beneficiary of the Participant in the form of a lump sum payment as soon as
administratively possible following the death of the Participant.

 

7.5.    Designation
of Beneficiaries.

 

7.5.1.    Right to Designate.    Each
Participant may designate, upon forms to be furnished by and filed with the
Committee, one or more primary Beneficiaries or alternative Beneficiaries to
receive all or a specified part of such Participant’s Account in the event of
such Participant’s death. The Participant may change or revoke any such
designation from time to time without notice to or

 

15

 

consent
from any Beneficiary. No such designation, change or revocation shall be
effective unless executed by the Participant and received by the Committee
during the Participant’s lifetime.

 

7.5.2.    Spousal Consent.    Notwithstanding
the foregoing, a designation will not be valid for the purpose of paying
benefits from the Plan to anyone other than a surviving spouse of the
Participant (if there is a surviving spouse) unless that surviving spouse
consents in writing to the designation of another person as Beneficiary. To be
valid, the consent of such spouse must be in writing, and must acknowledge the
effect of the designation of the Beneficiary. The consent of the spouse must be
to the designation of a specific named Beneficiary which may not be changed
without further spousal consent, or alternatively, the consent of the spouse
must expressly permit the Participant to make and to change the designation of
Beneficiaries without any requirement of further spousal consent. The consent
of the spouse to a Beneficiary is a waiver of the spouse’s rights to death
benefits under the Plan. The consent of the surviving spouse need not be given
at the time the designation is made. The consent of the surviving spouse need
not be given before the death of the Participant. The consent of the surviving
spouse will be required, however, before benefits can be paid to any person
other than the surviving spouse. The consent of a spouse shall be irrevocable
and shall be effective only with respect to that spouse. The provisions of this
Section 7.5.2 shall not apply to a spouse of a Participant who became such
after benefits have commenced to such Participant.

 

7.5.3.    Failure of Designation.    If
a Participant:

 

(a)   fails to designate a Beneficiary,

 

(b)   designates a Beneficiary and thereafter revokes
such designation without naming another Beneficiary, or

 

(c)   designates one or more Beneficiaries and all such
Beneficiaries so designated fail to survive the Participant,

 

such
Participant’s Account, or the part thereof as to which such Participant’s
designation fails, as the case may be, shall be payable to the first class of
the following classes of automatic Beneficiaries with a member surviving the
Participant and (except in the case of surviving issue) in equal shares if
there is more than one member in such class surviving the Participant: (i) Participant’s
surviving spouse, (ii) Participant’s surviving issue per stirpes and not
per capita, (iii) Participant’s surviving parents, (iv) Participant’s
surviving brothers and sisters, (v) Representative of Participant’s
estate.

 

7.5.4.    Disclaimers by Beneficiaries.    A
Beneficiary entitled to a distribution of all or a portion of a deceased
Participant’s Account may disclaim an interest therein subject to the following
requirements. To be eligible to disclaim, a Beneficiary must be a natural
person, must not have received a distribution of all or any portion of the
Account at the time such disclaimer is executed and delivered, and must have
attained at least age twenty-one (21) years as of the date of the
Participant’s death. Any disclaimer must be in writing and must be executed
personally by the Beneficiary before a notary public. A disclaimer shall state
that the Beneficiary’s entire interest in the undistributed Account is
disclaimed or shall specify what portion thereof is disclaimed. To be
effective, duplicate original executed copies of the disclaimer must be both
executed and actually delivered to the Committee after the date of the
Participant’s death but not later than one hundred eighty (180) days after
the date of the Participant’s death. A disclaimer shall be irrevocable when
delivered to the Committee. A disclaimer shall be considered to be delivered to
the Committee only when actually received by the Committee. The Committee shall
be the sole judge of the content, interpretation and validity of a purported
disclaimer. Upon the filing of a valid disclaimer, the Beneficiary shall be
considered not to have survived the Participant as to the interest disclaimed. A
disclaimer by a Beneficiary shall not be considered to be a transfer of an

 

16

 

interest
in violation of any other provisions under this Plan. No other form of
attempted disclaimer shall be recognized by the Committee.

 

7.5.5.    Definitions.    When
used herein and, unless the Participant has otherwise specified in the
Participant’s Beneficiary designation, when used in a Beneficiary designation, “issue”
means all persons who are lineal descendants of the person whose issue are
referred to, including legally adopted descendants and their descendants but
not including illegitimate descendants and their descendants; “child” means an
issue of the first generation; “per stirpes” means in equal shares among living
children of the person whose issue are referred to and the issue (taken
collectively) of each deceased child of such person, with such issue taking by
right of representation of such deceased child; and “survive” and “surviving”
mean living after the death of the Participant.

 

7.5.6.    Special Rules.    Unless
the Participant has otherwise specified in the Participant’s Beneficiary
designation, the following rules shall apply:

 

(a)   If there is not sufficient evidence that a
Beneficiary was living at the time of the death of the Participant, it shall be
deemed that the Beneficiary was not living at the time of the death of the
Participant.

 

(b)   The automatic Beneficiaries specified in Section 7.5.3
and the Beneficiaries designated by the Participant shall become fixed at the
time of the Participant’s death so that, if a Beneficiary survives the
Participant but dies before the receipt of all payments due such Beneficiary
hereunder, such remaining payments shall be payable to the representative of
such Beneficiary’s estate.

 

(c)   If the Participant designates as a Beneficiary the
person who is the Participant’s spouse on the date of the designation, either
by name or by relationship, or both, the dissolution, annulment or other legal
termination of the marriage between the Participant and such person shall
automatically revoke such designation. (The foregoing shall not prevent the
Participant from designating a former spouse as a Beneficiary on a form
executed by the Participant and received by the Committee after the date of the
legal termination of the marriage between the Participant and such former
spouse, and during the Participant’s lifetime.)

 

(d)   Any designation of a nonspouse Beneficiary by name
that is accompanied by a description of relationship to the Participant shall
be given effect without regard to whether the relationship to the Participant
exists either then or at the Participant’s death.

 

(e)   Any designation of a Beneficiary only by statement
of relationship to the Participant shall be effective only to designate the
person or persons standing in such relationship to the Participant at the
Participant’s death.

 

The Committee shall be the
sole judge of the content, interpretation and validity of a purported
Beneficiary designation.

 

7.6.    Death
Prior to Full Distribution.    If, at the death
of the Participant, any payment to the Participant was due or otherwise pending
but not actually paid, the amount of such payment shall be included in the
Account which is payable to the Beneficiary (and shall not be paid to the
Participant’s estate).

 

17

 

7.7.    Facility
of Payment.    In case of the legal disability,
including minority, of a Participant or Beneficiary entitled to receive any
distribution under this Plan, payment shall be made by the Employers, if the
Committee shall be advised of the existence of such condition:

 

(a)   to the duly appointed guardian, conservator or
other legal representative of such Participant or Beneficiary, or

 

(b)   to a person or institution entrusted with the care
or maintenance of the incompetent or disabled Participant or Beneficiary,
provided such person or institution has satisfied the Committee that the
payment will be used for the best interest and assist in the care of such
Participant or Beneficiary, and provided further, that no prior claim for said
payment has been made by a duly appointed guardian, conservator or other legal
representative of such Participant or Beneficiary.

 

Any payment made in accordance
with the foregoing provisions of this section shall constitute a complete
discharge of any liability or obligation of the Employers therefor.

 

7.8.    In-Service
Distributions.

 

7.8.1.    Pre-Selected In-Service Distributions.    If
a Participant so elects upon initial enrollment in the Plan under Section 3,
distribution will be made to such Participant prior to Termination of
Employment under the following rules:

 

(a)   On forms approved and furnished by and filed with
the Committee, each Participant has a one-time opportunity to select one or
more in-service distribution dates and amounts at the time of initial
enrollment only.

 

(b)   No such distribution will be made before the April 1
that follows the third full Plan Year after the Participant first enrolled.

 

(c)   Only one such distribution will be made in any
Plan Year.

 

(d)   On forms approved and furnished by and filed with
the Committee, any pre-selected distribution date may be extended (one time
only), provided that such extension must be received by the Committee at least
12 months before the scheduled date of distribution and, provided that,
with respect to a Participant who is a Section 16 Officer, the extension
also must be approved in advance by the Committee.

 

(e)   On forms approved and furnished by and filed with
the Committee, any pre-selected distribution date may be cancelled (whether or
not previously extended), provided that such cancellation must be received by
the Committee at least twelve (12) months before the scheduled date of distribution
and, provided that, with respect to a Participant who is a Section 16
Officer, the cancellation also must be approved in advance by the Committee.

 

(f)    The distribution amount shall be determined
as of the Valuation Date coincident with or next following the pre-selected
distribution date and shall be actually paid as soon as practicable after such
determination.

 

7.8.2.    On Demand In-Service Distributions.    On
forms approved and furnished by and filed with the Committee, a Participant may
request to receive all or part of such Participant’s Account prior to
Termination of Employment for any reason, provided that the requested
distribution amount will be reduced by a penalty equal to 10% of the requested
amount, with the result that the Participant will receive 90% of the requested
amount and 10% of the requested amount will be forfeited to the Employers and,
provided that, with respect to a Participant who is a Section 16 Officer,
the distribution also must be approved in advance by the Committee. The amount
of such distribution shall be determined as of the Valuation Date coincident
with or next following receipt of the request by the Committee, and, if
applicable, the approval of the Committee, and shall be actually paid by the
Employers to the Participant as soon as practicable after such determination.

 

18

 

If
a Participant receives such a distribution, such Participant’s deferrals under Section 3
will then cease. The Participant may not again elect to defer compensation
until the enrollment period for the Plan Year that begins at least twelve
(12) months after such distribution.

 

7.8.3.    In-Service Distribution for Financial Hardship.    On
forms approved and furnished by and filed with the Committee, a Participant may
request to receive all or part of such Participant’s Account prior to
Termination of Employment to alleviate a Financial Hardship and, provided that,
with respect to a Participant who is a Section 16 Officer, the distribution
also must be approved in advance by the Committee. For purposes of the Plan, “Financial
Hardship” means a severe financial hardship to the Participant resulting from a
sudden and unexpected illness or accident of the Participant or a dependent (as
defined in Section 152(a) of the Code), loss of the Participant’s
property due to casualty, or other similar extraordinary and unforeseeable
emergency circumstances arising as a result of events beyond the control of the
Participant. If a hardship is or may be relieved either (a) through
reimbursement or compensation by insurance or otherwise, (b) by
liquidation of the Participant’s assets (to the extent the liquidation of such
assets would not itself cause severe financial hardship), or (c) by
cessation of deferrals under this Plan or any Section 401(k) plan, then
the hardship shall not constitute a Financial Hardship for purposes of this
Plan. The amount of such distribution shall be determined as of the Valuation
Date next preceding approval of the request by the Committee and shall be
actually paid as soon as practicable after such approval. If a Participant
receives a distribution due to Financial Hardship, such Participant’s deferrals
under Section 3 will then cease. The Participant may not again elect to defer
compensation until the enrollment period for the Plan Year that begins at least
twelve (12) months after such distribution. A Beneficiary of a deceased
Participant may also request an early distribution for Financial Hardship.

 

7.9.    Effect of
Disability.    If the Participant becomes
Disabled while actively employed by the Employers or an Affiliate, the
Participant may by written notice to the Committee suspend further deferrals
while so Disabled. If a Disabled Participant has a Termination of Employment,
such Participant will be deemed to be age fifty-five (55) and to have five
(5) years of continuous service for purposes of determining distributions
under Section 7. For purposes of the Plan, “Disabled” means that the
Participant has been determined to be totally and permanently disabled either (a) for
social security purposes, (b) for purposes of any Employer-sponsored long
term disability plan or policy, or (c) for purposes of worker’s
compensation.

 

7.10.    Distributions
in Cash.    All distributions from this Plan
shall be made in cash, and no amounts which may be payable under the Plan will
be payable in the form of ATK common stock.

 

SECTION 8

FUNDING OF PLAN

 

8.1.    Unfunded
and Unsecured Plan.    The Plan shall at all
times be considered entirely unfunded for tax purposes and for purposes of
ERISA and no provision shall at any time be made with respect to segregating
assets of any Employer for payment of any amounts under the Plan. The
obligation of any Employer to make payments under this Plan constitutes only
the unsecured (but legally enforceable) promise of the Employer to make such
payments. Any funds invested under the Plan allocable to an Employer shall
continue for all purposes to be part of the respective general assets of such
Employer and available to the general creditors of the Employer in the event of
insolvency (the Employer is generally not paying its debts as such debts become
due, taking into account any period of time during which such Employer is
permitted to cure any past due payment of such debts, unless such debts are the
subject of a bona fide dispute, as interpreted and applied by United States
Bankruptcy Courts) or bankruptcy (the Employer is subject to a pending
proceeding voluntary or otherwise (including an involuntary petition), as a
debtor under the United States Bankruptcy Code) of such

 

19

 

Employer. No Participant shall have any lien, prior
claim or other security interest in any property of any Employer. An Employer
shall have no obligation to establish or maintain any fund, trust or account
(other than a bookkeeping account or reserve) for the purpose of funding or
paying the benefits promised under this Plan. If such a fund, trust or account
is established by an Employer, the property therein shall remain the sole and
exclusive property of the Employer. Unless otherwise paid by ATK, a
participating Employer shall be obligated to pay its respective costs of this
Plan out of its general assets. All references to accounts, accruals, gains,
losses, income, expenses, payments, custodial funds and the like are included
merely for the purpose of measuring the obligation of a participating Employer
to Participants in this Plan and shall not be construed to impose on the Employer
the obligation to create any separate fund for purposes of this Plan.

 

8.2.    Corporate
Obligation.    Neither any officer of any
Employer nor any member of the Committee 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 Participant. Each Participant and other person entitled
at any time to payments hereunder shall look solely to the assets of the
Employers for such payments as an unsecured, general creditor. After benefits
shall have been paid to or with respect to a Participant and such payment
purports to cover in full the benefit hereunder, such former Participant or
other person or persons, as the case may be, shall have no further right or
interest in the other assets of the Employers in connection with this Plan. No
person shall be under any liability or responsibility for failure to effect any
of the objectives or purposes of this Plan by reason of the insolvency of the
Employers.

 

8.3.    The Trust.    In
order to provide assets from which to fulfill the obligations to the
Participants and their Beneficiaries under the Plan, ATK may establish a Trust
by a trust agreement with a third party, the Trustee, to which ATK and any
participating Employer may, in its discretion, contribute cash or other
property to provide for the benefit payments under the Plan. The Trustee for
the Trust will have the duty to invest the Trust assets and funds in accordance
with the terms of such Trust. ATK shall be entitled at any time, and from time
to time, in its sole discretion, to substitute assets of at least equal fair
market value for any assets held in the Trust established by ATK. All rights
associated with the assets of the Trust will be exercised by the Trustee of the
Trust or the person designated by such Trustee, and will in no event be
exercisable by or rest with Participants or their Beneficiaries. The Trust
shall provide that in the event of the insolvency of ATK, the Trustee shall
hold the assets for the benefit of the general creditors of ATK.

 

SECTION 9

AMENDMENT AND TERMINATION

 

9.1.    Amendment
and Termination.    The Board of Directors may
unilaterally amend the Plan Statement prospectively, retroactively or both, at
any time and for any reason deemed sufficient by it without notice to any
person affected by this Plan and may likewise terminate this Plan both with
regard to persons receiving benefits and persons expecting to receive benefits
in the future; provided, however, that:

 

(a)   the benefit, if any, payable to or with respect to
a Participant who has had a Termination of Employment as of the effective date
of such amendment or the effective date of such termination shall not be,
without the written consent of the Participant, diminished or delayed by such
amendment or termination (but the Board of Directors may terminate the Plan
completely and provide for immediate payment of all Accounts under the Plan in
single lump sum payments), and

 

(b)   the benefit, if any, payable to or with respect to
each other Participant determined as if such Participant had a Termination of
Employment on the effective date of such amendment or the effective date of
such termination shall not be, without the written consent of the Participant,

 

20

 

diminished
or delayed by such amendment or termination (but the Board of Directors may
terminate the Plan completely and provide for immediate payment of all Accounts
under the Plan in single lump sum payments).

 

9.2.    No Oral
Amendments.    No modification of the terms of
the Plan Statement or termination of this Plan shall be effective unless it is
in writing and signed on behalf of the Board of Directors by a person
authorized to execute such writing. No oral representation concerning the
interpretation or effect of the Plan Statement shall be effective to amend the
Plan Statement.

 

9.3.    Plan
Binding on Successors.    ATK will require any
successor (whether direct or indirect, by purchase, merger, consolidation or
otherwise to all or substantially all of the business and/or assets of ATK), by
agreement, to expressly assume and agree to perform this Plan in the same
manner and to the same extent that ATK would be required to perform it if no
such succession had taken place.

 

SECTION 10

DETERMINATIONS, RULES AND REGULATIONS

 

10.1.    Determinations.    The
Board of Directors and the Committee shall make such determinations as may be
required from time to time in the administration of this Plan. The Board of
Directors and the Committee shall have the discretionary authority and
responsibility to interpret and construe the Plan Statement and to determine
all factual and legal questions under this Plan, including but not limited to
the entitlement of Participants 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.

 

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

 

10.3.    Method
of Executing Instruments.    Information to be
supplied or written notices to be made or consents to be given by the Committee
pursuant to any provision of the Plan Statement may be signed in the name of
the Committee by any officer who has been authorized to make such certification
or to give such notices or consents.

 

10.4.    Claims
Procedure.    The claims procedure set forth in
this Section 10.4 shall be the exclusive administrative procedure for the
disposition of claims for benefits arising under this Plan.

 

10.4.1.    Original Claim.    Any
person may, if he or she so desires, file with the Committee a written claim
for benefits under this Plan. Within ninety (90) days after the filing of
such a claim, the Committee 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 Committee shall state in writing:

 

(a)   the specific reasons for the denial;

 

(b)   the specific references to the pertinent
provisions of the Plan Statement 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.

 

10.4.2.    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

 

21

 

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.

 

10.4.3.    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 Committee 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 Committee upon request.

 

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

 

(c)   the Committee 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 Committee 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 Committee 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 Statement and all other
pertinent documents in the possession of the Committee and the Board of
Directors.

 

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

 

10.4.4.    Disability Claims.    Effective
for claims filed on or after January 1, 2002, any review of an appeal of a
determination with respect to the disability of an eligible employee must meet
the following standards: the review does not afford deference to the initial
adverse determination; the review is conducted by an appropriate person who is
neither the party who made the initial adverse benefit determination that is
the subject of the appeal nor a subordinate of such party; the review provides
for the appropriate person to consult with health care professionals with
appropriate training and experience in the field of medicine involved in the
medical judgment in deciding the appeal of an adverse benefit determination
that is based in whole or in part on a medical judgment; and the review
provides for the identification of the medical or vocational experts whose
advice was obtained in connection with the claimant’s adverse benefit
determination, without regard to whether the advice was relied upon in making
the determination. Furthermore, effective for claims filed on or after January 1,
2002, the ninety (90) day period described in these procedures shall be
reduced to forty-five (45) days in the case of a claim of the disability. The
forty-five (45) day period may be extended by thirty (30) days if the
Committee determines the extension is necessary to circumstances outside the
control of the Committee, and the claimant is notified prior to the end of the
forty-five (45) day period. If prior to the end of the thirty
(30) day extension period, the Committee determines that additional time
is necessary, the period may be extended for a second thirty (30) day
period, provided the claimant is notified prior to the end of

 

22

 

the
first thirty (30) day extension period and such notice specifies the
circumstances requiring the extension and the date as of which the Committee
expects to render a decision. Effective for claims filed on or after January 1,
2002, the sixty (60) day period described in these procedures shall be
reduced to forty-five (45) days with respect to the appeal of the denial
of the claim of disability by an eligible employee. The forty-five
(45) day period may be extended by an additional forty-five (45) days
if the Board of Directors determines the extension is necessary to
circumstances outside the control of the Board of Directors, and the claimant
is notified prior to the end of the initial forty-five (45) day period.

 

10.5.    Limitations
and Exhaustion.

 

10.5.1.    Limitations.    No
claim shall be considered under these administrative procedures unless it is
filed with the Committee 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 Committee 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 Participant knew (or reasonably should have known) shall be
imputed to each claimant who is or claims to be a Beneficiary of the
Participant (or otherwise claims to derive an entitlement by reference to a
Participant) for the purpose of applying the one (1) year and two (2) year
periods.

 

10.5.2.    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 Committee 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 11

PLAN ADMINISTRATION

 

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

 

11.2.    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 ATK generally hereunder as the CEO may from time to time deem
advisable.

 

11.3.    Board of
Directors.    Notwithstanding the foregoing, the
Board of Directors shall have the exclusive authority, which may not be
delegated, to amend the Plan Statement and to terminate this Plan.

 

23

 

11.4.    Committee.    The
Committee 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 the Employers of any action taken by
the Committee and, when required, notify any other interested person or
persons;

 

(b)   determine from the records of the Employers the
compensation, status and other facts regarding Participants and other employees;

 

(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 Participants
similarly situated, as are deemed necessary to carry out the terms of this Plan
Statement;

 

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

 

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

 

If there shall at any time
be three (3) or more members of the Committee 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.

 

11.5.    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 Statement or pursuant to procedures set forth in the Plan Statement.

 

11.6.    Conflict
of Interest.    If any individual to whom
authority has been delegated or redelegated hereunder shall also be a
Participant in this Plan, such Participant shall have no authority with respect
to any matter specially affecting such Participant’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 Participants and Beneficiaries or a
broad class of Participants and Beneficiaries), all such authority being
reserved exclusively to other individuals as the case may be, to the exclusion
of such Participant, and such Participant shall act only in such Participant’s
individual capacity in connection with any such matter.

 

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

 

11.8.    Service
of Process.    In the absence of any designation
to the contrary by the Committee, the General Counsel of ATK 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.

 

24

 

11.9.    Expenses.    All
expenses of administering this Plan shall be borne by the Employers.

 

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

 

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

 

11.12.    Errors
in Computations.    The Employers shall not be
liable or responsible for any error in the computation of the Account or the
determination of any benefit payable to or with respect to any Participant
resulting from any misstatement of fact made by the Participant or by or on
behalf of any survivor to whom such benefit shall be payable, directly or
indirectly, to the Employers and used by the Committee in determining the
benefit. The Committee shall not be obligated or required to increase the
benefit payable to or with respect to such Participant which, on discovery of
the misstatement, is found to be understated as a result of such misstatement
of the Participant. However, the benefit of any Participant 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).

 

SECTION 12

CONSTRUCTION

 

12.1.    Applicable
Laws.

 

12.1.1.    ERISA Status.    This
Plan is adopted with the understanding that it is an unfunded plan maintained primarily
for the purpose of providing deferred compensation for a select group of
management or highly compensated employees as provided in section 201(2), section 301(3) and
section 401(a)(1) of ERISA. Each provision shall be interpreted and
administered accordingly.

 

12.1.2.    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.

 

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

 

12.2.    Effect
on Other Plans.    This Plan shall not alter,
enlarge or diminish any person’s employment rights or obligations or rights or
obligations under any other employee pension benefit or employee welfare
benefit plan.

 

12.3.    Disqualification.    Notwithstanding
any other provision of the Plan Statement or any election or designation made
under this Plan, any potential Beneficiary who feloniously and intentionally
kills a Participant shall be deemed for all purposes of this Plan and all
elections and designations made under this Plan to have died before such
Participant. 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 Committee shall determine whether the
killing was felonious and intentional for this purpose.

 

25

 

12.4.    Rules of
Document Construction.

 

(a)   An individual shall be considered to have attained
a given age on such individual’s birthday for that age (and not on the day
before). Individuals born on February 29 in a leap year shall be
considered to have their birthdays on February 28 in each year that is not
a leap year.

 

(b)   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 Statement and not to any particular paragraph
or Section of the Plan Statement unless the context clearly indicates to
the contrary.

 

(c)   The titles given to the various Sections of the
Plan Statement are inserted for convenience of reference only and are not part
of the Plan Statement, and they shall not be considered in determining the
purpose, meaning or intent of any provision hereof.

 

(d)   Notwithstanding any thing apparently to the
contrary contained in the Plan Statement, the Plan Statement 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 the Employers.

 

12.5.    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.

 

12.6.    No
Employment Contract.    This Plan is not and
shall not be deemed to constitute a contract of employment between an Employer
and any person, nor shall anything herein contained be deemed to give any
person any right to be retained in an Employer’s employ or in any way limit or
restrict the Employer’s right or power to discharge any person at any time and
to treat any person without regard to the effect which such treatment might
have upon him or her as a Participant in this Plan. Neither the terms of the
Plan Statement nor the benefits under this Plan nor the continuance of the Plan
shall be a term of the employment of any employee. The Employers shall not be
obliged to continue this Plan.

 

26

 

FIRST
AMENDMENT

TO THE

ALLIANT TECHSYSTEMS INC.

NONQUALIFIED DEFERRED COMPENSATION PLAN

 

Alliant Techsystems Inc., a Delaware corporation
(hereinafter sometimes referred to as “ATK”), pursuant to the authority and
power reserved to it in Section 9.1 of the Alliant Techsystems Inc.
Nonqualified Deferred Compensation Plan (hereinafter referred to as the “Plan”),
hereby adopts and publishes this First Amendment to said Plan effective as of February 2,
2004.

 

1.                                      Section 1
of said Plan shall be, and hereby is, amended by deleting subsection 1.2.17
of Section 1.2 thereof in its entirety and substituting therefor the
following subsection 1.2.17:

 

1.2.17.               Participant
– an employee of an Employer who is designated as or determined to
be eligible to participate in the Plan in accordance with the provisions of Section 2
and who has elected to defer compensation under Section 3, or an employee
or former employee of Thiokol who is designated as or determined to be eligible
to participate in the Plan in accordance with the provisions of Section 2,
who has been determined to be eligible to participate in the Plan based upon
participation in the Thiokol Deferred Executive Bonus Program and for whom
amounts allocated to accounts under that program are transferred to and
credited to Transfer Accounts under this Plan. 
A Participant shall be considered to continue as a Participant in this
Plan until the date of the Participant’s death or, if earlier, the date when
the Participant no longer has any Account under this Plan (that is, the Participant
has received a distribution of all of the amounts credited to the Account of
the Participant).

 

2.                                      Section 1
of said Plan shall be, and hereby is, further amended by designating subsection 1.2.23
of Section 1.2 thereof, the definition of the term “Valuation Date,” as
subsection 1.2.24.

 

3.                                      Section 1
of said Plan shall be, and hereby is, further amended by adding thereto the
following new subsection 1.2.23 to Section 1.2 thereof:

 

1.2.23.               Transfer
Account – the separate bookkeeping account representing the separate
unfunded and unsecured general obligation of the Employers established with
respect to each person who is a Participant in this Plan for whom dollar
amounts are credited pursuant to and in accordance with Section 3.7 and
from which are subtracted payments or distributions made pursuant to Section 3.7
or Section 7.

 

 

4.                                      Section 2
of said Plan shall be, and hereby is, amended by deleting Section 2.1
thereof in its entirety and substituting therefor the following Section 2.1:

 

2.1                                 Eligibility.  Eligibility to participate in the Plan shall
be governed by and determined in accordance with the provisions of Section 2.1.1
and Section 2.1.2.

 

2.1.1.                     Eligibility
to Participate.  Eligibility
to participate in the Plan shall be determined based upon the requirements of
the provisions of paragraphs (a) and (b) must be satisfied.

 

(a)                                  Eligibility to
participate in the Plan shall be limited to only the following classifications
of employees:

 

(i)                                     any
employee of an Employer who is eligible to participate in a Bonus Plan and who
is selected for participation in this Plan by the CEO (or any person authorized
to act on behalf of the CEO by the Committee) and, with respect to any Section 16
Officer, is selected for participation in this Plan by the Committee;

 

(ii)                                  any
employee who is an active participant in the Alliant Techsystems Inc.
Management Deferred Compensation Plan who elects, effective as of January 1,
2003, to cease participation in that plan, resulting in the termination of
salary and bonus deferral elections made in accordance with that plan by the
participant and the cessation of amounts credited to any account of the
participant under that plan, and to participate in this Plan; and

 

(iii)                               any employee or former
employee of Thiokol who was an active participant in the Thiokol Deferred
Executive Bonus Program and who has not yet received the entire benefit payable
to such person under that program and with respect to whom the balance of the
amount allocated to the account of that person pursuant to the Thiokol Deferred
Executive Bonus Program shall be transferred to and credited to a Transfer
Account established and maintained under the Plan for such person by reason of
the consolidation and merger of the Thiokol Deferred Executive Bonus Program with
and into this Plan in a manner consistent with the requirements of section 414(l)
of the Internal Revenue Code and section 1.414(l)-1 of the Treasury
Regulations regarding a merger and consolidation of assets and liabilities, but
without regard to any actual merger and consolidation of assets.

 

(b)                                 Subject to Section 2.2
of the Plan, such an eligible employee or person must then be selected for
participation in the Plan by the CEO (or any

 

2

 

person authorized to act on behalf of the CEO by the Committee) and,
with respect to any Section 16 Officer, is selected for participation in
the Plan by the Committee, and shall be eligible to become a Participant as of
the day designated by the CEO or, with respect to a Section 16 Officer,
the Committee (or, if the CEO or the Committee does not designate a day of
initial participation, as of the first day of the next following Plan
Year).  The CEO (or the Committee) shall
not select any employee for participation unless the CEO (or the Committee)
determines that such employee is a member of a select group of management or
highly compensated employees (as that phrase has been interpreted under
ERISA).  The Committee may at any time
determine that a Participant is no longer eligible to make voluntary deferrals
from salary under Section 3.1, or Bonus Plan cash payments or CVA amounts
under Section 3.2, or to defer any performance shares under Section 3.5,
or restricted stock under Section 3.6. 
The Committee also may determine that a Participant is not eligible for
the credits for the Section 401(k) Plan Supplement under Section 3.3
for any Plan Year at any time before such credits have actually been made.

 

2.1.2.                     Determination
of Eligibility.  The
determinations made by the CEO and the Committee pursuant to Section 2.1.1
with respect to eligibility to participate in the Plan shall be conclusive and
binding on all parties.  Furthermore, the
CEO or, with respect to Section 16 Officers, the Committee may in its
discretion determine that a Participant who performs or who has performed
services to or with respect to an Employer is no longer eligible to develop
benefits under the Plan.  In such event,
any benefits payable to the Participant under the Plan will be determined as of
the date such Participant ceased such eligibility and will be distributable in
accordance with Section 3.7 or Section 7 of the Plan.

 

5.                                      Section 2
of said Plan shall be, and hereby is, further amended by deleting Section 2.2
thereof in its entirety and substituting therefor the following Section 2.2:

 

2.2                                 Participation.  Any person determined to be eligible to
participate in the Plan under Section 2.1 shall become a Participant as of
the date determined under Section 2.1, provided, however, that such person
files with the Committee a completed deferral election form in accordance with
the requirements of Section 3 of the Plan electing to participate in the
Plan or is otherwise considered to be a Participant as of the date determined
by the Committee by reason of the credit of the amount allocated to the account
of such person under the Thiokol Deferred Executive Bonus Program to a Transfer
Account under this Plan pursuant to Section 3.7.  Subject to the provisions of the Plan, once a
person becomes a Participant in the Plan, the person shall remain a Participant
until his or her death or, if earlier, the date on which occurs a distributable
event under either Section 3.7 or Section 7 of the Plan and the
entire benefit which may be payable to or on behalf of such Participant under
the Plan have been distributed.

 

3

 

6.                                      Section 3
of said Plan shall be, and hereby is, amended to clarify the manner in which
the Plan is intended to be construed and interpreted with respect to amounts or
units that may be credited to an Account or Accounts of a Participant under the
Plan by the Employer by deleting Section 3.4 thereof in its entirety and
substituting therefor the following Section 3.4:

 

3.4                                 Employer Discretionary Supplements.  Upon written notice to a Participant and to
the Committee, the CEO (or, for any Section 16 Officer, the Committee) may
(but is not required to) determine at any time and from time to time that an
additional amount, or amounts, or units (measured by the value of ATK common
stock) shall be credited to an Account or Accounts of the Participant.  Such notice shall specify the amount,
amounts, or units to be credited to the Account or Accounts of such Participant
and any terms and conditions applicable with respect to any such amount,
amounts or units, and shall specify the date or dates on which such amount,
amounts, or units shall be credited to such Account or Accounts.  Notwithstanding Section 5, such notice
may also establish vesting rules for such amount or amounts or such units,
in which case a separate Account or separate Accounts may be established for
such Participant.

 

7.                                      Section 3
of said Plan shall be, and hereby is, further amended by deleting Section 3.7
thereof in its entirety and substituting therefor the following Section 3.7:

 

3.7.                              Transfer Amounts.  The amounts subject to a transfer pursuant to
this Section 3.7 and the requirements regarding such transfer as herein
provided shall apply with respect to the benefits that may be payable under the
Plan.

 

(a)                                  If a participant in
the Alliant Techsystems Inc. Management Deferred Compensation Plan elects to
cease to participate in that plan and to participate in this Plan pursuant to Section 2
of this Plan, effective as of January 1, 2003, the Participant’s elections
to defer salary and bonus amounts that were made under that plan and in effect
at the time of such election to cease to participate in that plan and to
participate in this Plan shall terminate, effective as of January 1, 2003,
and no additional amounts shall be credited to such Participant’s account or
accounts under that plan as of the effective date of such election to cease to
participate in that plan and to participate in this Plan.

 

(b)                                 If a participant in
the Thiokol Deferred Executive Bonus Program becomes a Participant in this Plan
pursuant to Section 2 of this Plan, effective as of February 2, 2004,
the amounts that were credited to the account of such participant under that
program shall be transferred to and credited to a Transfer Account established
and maintained under this Plan for such participant in a manner consistent with
the requirements of section 414(l) of the Internal Revenue Code and section 1.414(l)-1
of the Treasury Regulations regarding a merger or consolidation of assets and

 

4

 

liabilities, but without regard to any actual merger or consolidation
of assets.  The amount credited to a
Transfer Account of a Participant who had been a participant in the Thiokol
Deferred Executive Bonus Program shall be determined as of January 31,
2004, and credited to the Transfer Account under this Plan as the opening
balance as of February 2, 2004.

 

3.7.1.                     Transfer
Accounts.  The amounts subject
to a transfer pursuant to this Section 3.7 shall be credited to Transfer
Accounts or other Accounts (or sub-accounts) under this Plan in accordance with
this Section 3.7.1.

 

(a)                                  Upon the election of
a Participant to cease to participate in the Alliant Techsystems Inc.
Management Deferred Compensation Plan and to participate in this Plan, the
amounts credited to the account or accounts of that participant under the
Alliant Techsystems Inc. Management Deferred Compensation Plan shall be
transferred to and credited to a Transfer Account or other Account, Accounts or
any sub-account established for the benefit of the Participant under the Plan
and shall be subject to the terms and conditions of this Plan.  The value of the benefits that were payable
to such participant under the Alliant Techsystems Inc. Management Deferred
Compensation Plan shall, after such transfer and credit to such Transfer
Account, or other Account, Accounts or sub-account under this Plan, be
determined, except as otherwise provided under this Section 3.7, valued
and payable under this Plan and no benefit shall be determined, valued or
payable to or with respect to that participant under the Alliant Techsystems
Inc. Management Deferred Compensation Plan, and all rights under the Alliant
Techsystems Inc. Management Deferred Compensation Plan shall be waived by that
participant and forfeited.

 

(b)                                 Effective as of February 2,
2004, the balance of any amount credited to the account of a participant in the
Thiokol Deferred Executive Bonus Program as of January 31, 2004, who
becomes a Participant in this Plan shall be transferred to and credited to a
Transfer Account of the Participant under the Plan and shall be subject to the
terms and conditions of this Plan.  The
value of the benefits that were payable to the participant under the Thiokol
Deferred Executive Bonus Program, which program shall be consolidated with and
merged into this Plan, shall, after such transfer and credit to such Transfer
Account under this Plan, be determined, valued and payable under this Plan
subject to the terms and conditions of this Plan, and no benefit shall be
separately determined, valued or payable to or with respect to that participant
under the Thiokol Deferred Executive Bonus Program.

 

5

 

3.7.2.                     Distribution
of Transfer Amounts. 
Notwithstanding any provision in Section 7 of the Plan apparently
to the contrary, and except as otherwise provided under this Section 3.7,
the distribution requirements of this Section 3.7.2 shall apply.

 

(a)                                  With respect to amounts
credited to an account, accounts or sub-accounts of a participant under the
Alliant Techsystems Inc. Management Deferred Compensation Plan that have been
transferred to and credited to the Transfer Account or other Account or
Accounts or sub-accounts for that participant under this Plan pursuant to this Section 3.7,
such amounts so credited to the Transfer Account or other Account, Accounts or
sub-accounts of the Participant shall be distributed pursuant to and in
accordance with the terms and conditions of this Plan, provided, however, that,
subject to such terms and conditions as determined by ATK, distributions
currently in effect pursuant to elections made under the Alliant Techsystems
Inc. Management Deferred Compensation Plan shall continue to be made in
accordance with such elections as if no amounts were transferred to or credited
to Accounts under this Plan for purposes of such distributions.

 

(b)                                 With respect to
amounts credited to the account of a participant in the Thiokol Deferred
Executive Bonus Program that have been transferred to and credited to a
Transfer Account for that participant under this Plan pursuant to this Section 3.7,
such amounts shall be distributed pursuant to and in accordance with the terms
and conditions of this Plan, which terms and conditions shall specifically
include the restrictions and limitations of Section 3.7.3 hereof.

 

3.7.3.                     Restrictions
and Limitations. 
Notwithstanding any provision in Section 7 or this Section 3.7
or the Plan apparently to the contrary, the restrictions and limitations shall
apply with respect to amounts subject to a transfer pursuant to this Section 3.7.

 

(a)                                  If a Participant in
this Plan had made an in-service distribution election under the Alliant
Techsystems Inc. Management Deferred Compensation Plan and such election was in
effect at the time of the Participant’s election to cease to participate in
that plan, that in-service distribution election shall be treated and given
effect as an in-service distribution election under this Plan made in
accordance with the provisions of this Plan, except, however, that such
in-service distribution shall be made in accordance with the election made
under the Alliant Techsystems Inc. Management Deferred Compensation Plan as if
no transfer of such amount to this Plan had occurred.  Furthermore, any amount allocated by a
Participant to the “restricted bonus account” under the Alliant Techsystems
Inc. Management Deferred Compensation Plan at the time of the Participant’s
election to cease to participate in that plan shall be allocated to a “restricted
bonus sub-account” Measuring Investment established under this Plan and such
amount shall continue to be subject to the restrictions and limitations
applicable to that amount as if no transfer of such amount to this Plan had
occurred.  Any amount allocated by a
Participant to the deemed (but not actual) investment in the common stock of
ATK and valued as if so invested under the Alliant Techsystems Inc. Management
Deferred Compensation Plan at the time of

 

6

 

the Participant’s election to cease to
participate in that plan shall be allocated to the ATK common stock Measuring
Investment established under this Plan and such amount shall be subject to the
provisions of this Plan and such other terms and conditions as determined by
ATK to satisfy any applicable requirements of the Sarbanes-Oxley Act of 2002,
including any applicable requirements regarding notice of blackout periods
pursuant to the Act and the guidance issued by the Department of Labor under section 2520.101-3
of the Department of Labor Regulations.

 

(b)                                 A participant in the
Thiokol Deferred Executive Bonus Program who becomes a Participant in this Plan
pursuant to Section 2 shall be considered a Participant in this Plan only
with respect to the Transfer Account established for the benefit of the
Participant pursuant to this Section 3.7 unless such Participant satisfies
the definition of Participant in Section 2.1 of the Plan, has been
selected for participation in the Plan as provided in Section 2.1 of the
Plan, and files with the Committee a completed deferral election form in
accordance with the requirements of Section 3 of the Plan and elects to
participate in the Plan, in which event the benefits provided to such
Participant shall be governed by the terms and conditions of the Plan and the
elections made by the Participant.  The
amounts allocated to the account of each such Participant under the Thiokol
Deferred Executive Bonus Program shall be credited to the Transfer Account
established under this Plan for each such Participant and such Transfer Account
shall become subject to all of the terms and conditions of this Plan.  Accordingly, the following rules shall
apply to such Transfer Account established with respect to a participant in the
Thiokol Deferred Executive Bonus Program who becomes a Participant in this
Plan:

 

(i)                                     a
lump sum amount shall be determined under the Thiokol Deferred Executive Bonus
Program as of January 31, 2004, and that amount shall be credited to the
participant’s Transfer Account (and to any sub-accounts established thereunder)
under this Plan and shown as the opening balance of the Transfer Account as of February 2,
2004;

 

7

 

(ii)                                  except
as provided under subparagraph (v) of this paragraph (b), prior to February 2,
2004, each such Participant shall complete a distribution election form
pursuant to the provisions of this Plan and all distributions from the Transfer
Account of the Participant shall be made in accordance with the provisions of
this Plan and the elections made by such Participant;

 

(iii)                               each such Participant
shall be permitted to allocate amounts credited to the Participant’s Transfer
Account, which amounts shall initially be allocated to the Salary-Fixed Fund
Account, to the Measuring Investments made available under the Plan for
purposes of measuring the value of the Participant’s Transfer Account,
provided, however, that the Participant shall not be permitted to allocate
amounts attributable to the transferred amounts credited to the Transfer
Account to the ATK common stock Measuring Investment, except upon a subsequent
reallocation of the amounts attributable to such transferred amounts held in
the Transfer Account in compliance with the terms and conditions set forth in
Sections 4.3 and 4.4 of the Plan; and, the Participant shall, pursuant to Section 4,
be permitted to request to allocate or reallocate amounts credited to the
Transfer Account among one or more Measuring Investments, including the ATK
common stock Measuring Investment pursuant to and in accordance with Section 4.4
of the Plan;

 

(iv)                              the
Transfer Account of each such Participant shall be fully (100%) vested and
nonforfeitable at all times (except for early distribution penalties described
in Section 7), which, for purposes of the Plan, determines the Participant’s
interest in the benefit described in the Transfer Account and under this Plan
that may be payable to or with respect to the Participant in accordance with
and subject to the terms of the Plan; and

 

(v)                                 subject
to such terms and conditions as determined by the Committee, a participant in
the Thiokol Deferred Executive Bonus Program who had made a valid and effective
election with respect to the commencement and form of payment of the benefit
payable to the participant under that program shall have the payment of such
benefit payable in accordance with such election as provided below:

 

(A)                              an
effective election made by C. Lathair Munk pursuant to and in accordance
with the Thiokol Deferred Executive

 

8

 

Bonus Program shall govern the timing and
form of the distribution of the balance of the amounts credited to his account
under that program, approximately $9,582.07 as of January 31, 2004, and
said election shall be irrevocable, shall be given full effect and shall be
enforced under this Plan as if such election had occurred under this Plan, and
no other distribution election shall be permitted under this Plan; accordingly,
the distribution of such amount payable to C. Lathair Munk subject to this
subparagraph (v) shall be payable in two substantially equal annual
payments as of September 1, 2004, and September 1, 2005;

 

(B)                                an
effective election made by D. M. Cox pursuant to and in accordance with
the Thiokol Deferred Executive Bonus Program shall govern the timing and form
of the distribution of the balance of the amounts credited to his account under
that program, approximately $59,934.52 as of January 31, 2004, and said
election shall be irrevocable, shall be given full effect and shall be enforced
under this Plan as if such election had occurred under this Plan, and no other
distribution election shall be permitted under this Plan; accordingly, the distribution
of such amount payable to D. M. Cox subject to this subparagraph (v) shall
be payable in two substantially equal annual payments as of September 1,
2004, and September 1, 2005;

 

(C)                                an
effective election made by B. Jones pursuant to and in accordance with the
Thiokol Deferred Executive Bonus Program shall govern the timing and form of
the distribution of the balance of the amounts credited to his account under
that program, approximately $78,025.78 in total based upon the sum of four
sub-accounts with respective credited amounts of $29,999.44, $17,766.13,
$11,184.12, and $19,076.09 as of January 31, 2004, and said election shall
be irrevocable, shall be given full effect and shall be enforced under this
Plan as if such election had occurred under this Plan, and no other
distribution election shall be permitted under this Plan; accordingly, the
distribution of such amounts payable to B. Jones subject to this
subparagraph (v) shall be payable based upon the balance of the
amounts credited to each sub-account with the amounts credited to each
sub-account payable in substantially equal annual payments as of July 1,
2004,

 

9

 

July 1, 2005, July 1,
2006, July 1, 2007, and July 1, 2008, with each payment with respect
to each sub-account to be determined by multiplying the balance of the amount
payable to B. Jones with respect to each sub-account determined as of the
date of distribution, by a fraction with one (1) as the numerator and the
number of payments remaining with respect to each sub-account as the
denominator;

 

(D)                               an
effective election made by Oren Phillips pursuant to and in accordance with the
Thiokol Deferred Executive Bonus Program shall govern the timing and form of
the distribution of the balance of the amounts credited to his account under
that program, approximately $26,776.05 as of January 31, 2004, and said
election shall be irrevocable, shall be given full effect and shall be enforced
under this Plan as if such election had occurred under this Plan, and no other
distribution election shall be permitted under this Plan; accordingly, the
distribution of such amount payable to Oren Phillips subject to this
subparagraph (v) shall be payable in substantially equal annual
payments as of June 15, 2005, June 15, 2006, June 15, 2007, June 15,
2008, and June 15, 2009, with each payment to be determined by multiplying
the balance of the amount payable to Oren Phillips determined as of the date of
distribution, by a fraction with one (1) as the numerator and the number
of payments remaining as the denominator; and

 

(E)                                 an
effective election made by D. Shaffer pursuant to and in accordance with
the Thiokol Deferred Executive Bonus Program shall govern the timing and form
of the distribution of the balance of the amounts credited to his account under
that program, approximately $44,586.18 as of January 31, 2004, and said
election shall be irrevocable, shall be given full effect and shall be enforced
under this Plan as if such election had occurred under this Plan, and no other
distribution election shall be permitted under this Plan; accordingly, the
distribution of such amounts payable to D. Shaffer subject to this
subparagraph (v) shall be payable in substantially equal annual
payments over a five (5) year period determined as of the date on which he
incurs a Termination of Employment, with each payment to be determined by
multiplying the balance of the amount

 

10

 

payable to
D. Shaffer determined as of the date of distribution, by a fraction with
one (1) as the numerator and the number of payments remaining as the
denominator.

 

8.                                      SAVINGS
CLAUSE.  Save and except as hereinabove
expressly amended, the Plan Statement shall continue in full force and effect.

 

11

 

SECOND AMENDMENT

TO
THE

ALLIANT
TECHSYSTEMS INC.

NONQUALIFIED
DEFERRED COMPENSATION PLAN

 

Alliant Techsystems Inc., a Delaware corporation (hereinafter sometimes
referred to as “ATK”), pursuant to the authority and power reserved to it in Section 9.1
of the Alliant Techsystems Inc. Nonqualified Deferred Compensation Plan
(hereinafter referred to as the “Plan”), hereby adopts and publishes this
Second Amendment to said Plan effective as of July 1, 2004.

 

1.                                       Section 7 of the Plan shall be, and
hereby is, amended by deleting subsection 7.2(b)(i) of Section 7.2
thereof in its entirety and substituting therefore the following subsection 7.2(b)(i):

 

7.2(b)(i)                               Installments.  Eligibility for Installments for Participants
Who Have Attained Age Fifty-Five (55). 
A Participant’s Account, including any sub-accounts, shall be
distributed in the form of a series of annual installments not to exceed
fifteen (15) annual installments if, and only if, the Participant has satisfied
the following conditions:  (a) the
Participant, at Termination of Employment has attained age fifty-five (55) and
has at least two (2) years of continuous service with the Employers or one
or more Affiliates, (b) the Participant has made an election to receive
distribution of the Account, including any sub-accounts, in annual installments
as described in Section 7.3, and (c) the Participant has elected the
number of annual installment to be made.

 

2.                                       Section 7
of the Plan shall be, and hereby is, amended by deleting Subsection 7.2(b)(ii) of
Section 7.2 thereof in its entirety and substituting therefore the
following Subsection 7.2(b)(ii):

 

7.2(b)(ii)                           Eligibility
for Installments for Participants Who Have Not Attained Age Fifty-Five (55).  A Participant’s Account, including any
sub-accounts, shall be distributed in the form of a series of annual
installments not to exceed five (5) annual installments if, and only if,
the participant, at Termination of Employment, has not yet attained age
fifty-five (55), but has at least two (2) years of continuous service with
the Employers or one or more Affiliates, (b) the Participants has made an
election to receive distribution of the Account, including any sub-accounts, in
annual installments as described in Section 7.3, and (c) the
Participants has elected the number of annual installments to be made.

 

3.                                       Section 7
of the Plan shall be, and hereby is, amended by deleting Subsection 7.9
thereof in its entirety and substituting therefore the following Subsection 7.9:

 

7.9                                 Effect of Disability.  If the Participant becomes Disabled while
actively employed by the Employers or an Affiliate, the Participant may by
written notice to the Committee suspend further deferrals while so Disabled.  If a Disabled Participant has a Termination
of Employment, such Participant will be deemed to be age fifty-five (55) and to
have two (2) years of continuous service for purposes of determining
distribution under Section 7.  For
purposes of the Plan, “Disabled” means that the Participant has been determined
to be totally and permanently disabled either (a) for social security
purposes, (b) for purposes of any Employer-sponsored long term disability
plan or policy, or (c) for purposes of worker’s compensation.

 

4.                                       SAVINGS
CLAUSE.  Save and except as hereinabove
expressly amended, the Plan Statement shall continue in full force and effect.Exhibit 10.1

FIRST AMENDMENT TO THE CREDIT AGREEMENT

This FIRST AMENDMENT TO
THE CREDIT AGREEMENT (this “First Amendment”)
is made and entered into effective as of August 1, 2007, by and between GOLDEN
GRAIN ENERGY, LLC, an Iowa limited liability company (“Borrower”), and HOME
FEDERAL SAVINGS BANK, a federally chartered stock savings bank (“Lender”). This First Amendment
amends the Master Amended and Restated Credit Agreement between Borrower and
Lender (the “Master Agreement”)
as supplemented by the First Supplement to the Master Amended and Restated
Credit Agreement, the Second Supplement to the Master Amended and Restated
Credit Agreement (the “Second Supplement”), and the Third
Supplement to the Master Amended and Restated Credit Agreement, each dated
as of November 14, 2006 (as the same may be amended, restated, or otherwise
modified from time to time),
collectively known as the “Credit
Agreement.”

RECITALS:

WHEREAS,
Lender has made certain loans and other credit accommodations available to
Borrower under the original Credit Agreement; and

WHEREAS,
Borrower has requested that the Master Agreement be amended to decrease the
Restricted Cash Account requirement as hereinafter set forth; and

WHEREAS,
Borrower has requested that the Second Supplement be amended to (i)  increase the Revolving Commitment Amount  to $20,000,000 and (ii) eliminate the annual
step-down thereof; and

WHEREAS,
Lender agrees to Borrower’s requests subject to the terms and conditions
hereof.

NOW,
THEREFORE, Borrower and Lender agree as follows:

1.             Definitions. 
Capitalized terms used herein without definition have the meanings
specified in the Credit Agreement.

2.             Amendment
to Master Agreement (Restricted Cash Account Requirement).  The Master Agreement is hereby amended by
deleting Section 1.15 in its entirety and substituting the following therefor:

Section 1.15 
Restricted Cash Accounts.  Borrower
will maintain a balance of no less than $2,000,000 in the account established
pursuant to Section 2.10 of the Original Credit Agreement (the “Restricted Cash Account”) until such
time as all amounts held in retainage pursuant to the Construction Agreement
are paid to Fagen, Inc. in full and the ratio of Borrower’s Tangible Net Worth
to total assets is equal to or greater than 0.60:1.00, at which time the
balance then remaining in the Restricted Cash Account will be applied to any
amount owing under the Revolving Credit Facility or, if no such amount is then
owed, returned to Borrower.  In the event
that the ratio of Borrower’s Tangible Net Worth to total assets becomes less
than 0.60:1.00, Borrower will deposit into the Restricted Cash Account, within
forty five (45) days after the end of each fiscal 

quarter, an amount equal to 25% of Borrower’s
quarterly Net Income; provided the maximum amount required to be maintained in
the Restricted Cash Account is $4,000,000. 
Lender may, in its discretion at any time during the continuance of a
Default or Event of Default or at the request of Borrower, apply amounts on
deposit in the Restricted Cash Account as payment to the Obligations; provided
any such payments will be applied to Loan payments in the inverse order of
maturity and will not reduce the amount of any scheduled payment to the extent
any Obligation remains unpaid.  Proceeds
of the Restricted Cash Account secure all Loans ratably.

3.             Amendment to Second Supplement (Definitions of Revolving Commitment
Amount and Revolving Note). 
Section 1 of the Second Supplement is amended by deleting the defined
terms “Revolving Commitment Amount” and “Revolving Note” and substituting the
following therefor:

“Revolving Commitment Amount” means
$20,000,000.

“Revolving Note”
means the Third Amended and Restated Revolving Credit Note made by Borrower
payable to the order of Lender, dated as of August 1, 2007,  in the initial aggregate principal amount of
$20,000,000 in substantially the form of Exhibit 3A attached to the
First Amendment to the Credit Agreement dated as of August 1, 2007.

4.             Amendment to Second Supplement (Annual Fee).  A new Section 15 shall be added to the Second
Supplement and shall state as follows:

15.          Annual
Fee.  From and
after August 1, 2007, Borrower will pay Lender a fee in an amount equal to
$25,000.  Such fee will be paid annually
in arrears on the last Business Day of each year.

5.             Effectiveness; Conditions Precedent.  This First Amendment will become effective
upon (i) the delivery to Lender, in form and substance satisfactory to Lender,
of a counterpart of (a) this First Amendment, (b) the Revolving Note and (c) an
amendment to the Mortgage, each duly executed on behalf of Borrower; (ii) the
delivery to Lender of a
date-down endorsement of the original title insurance policy on the Real Estate
satisfactory to Lender in all respects; and (iii) Lender’s receipt of
all fees, including an origination fee equal to $37,500 ($5,000,000 x 0.75%),
and other amounts due and payable on or prior to the date hereof and all other
fees and amounts for reimbursement or payment of all out-of-pocket expenses
required to be reimbursed or paid by Borrower pursuant to any Loan Document or
any other agreement with Lender.

6.             Representations; Events of Default.  In order to induce Lender to execute this
First Amendment, Borrower, as of the date of this First Amendment, hereby:  (a) makes and renews the representations and
warranties contained in Article III of the Master Agreement, and (b) certifies
to Lender that there are no existing Defaults or Events of Default.

7.             General.  On and
after the effectiveness of this First Amendment, each reference in the Credit
Agreement to “this Agreement,” “hereunder,” “hereof” or words of like import
referring to the Credit Agreement, and each reference in the Loan Documents to
the Credit 

 2
 

Agreement, will
mean the Credit Agreement as amended by this First Amendment.  The Credit Agreement, as so amended, is and
will continue to be in full force and effect and it and the other Loan
Documents are hereby ratified and confirmed in all respects.

8.             Counterpart Signatures. 
This First Amendment may be executed by each party in one or more
counterparts, each of which will be deemed an original and all of which taken
together constitute one binding document.

[Signature page to follow]

 3
 

IN WITNESS WHEREOF, the parties
hereto have caused this First Amendment to be duly executed by their respective
authorized officers as of the day and year first above written.

	
  LENDER:

  	
   

  	
  BORROWER:

  
	
   

  	
   

  	
   

  
	
  HOME FEDERAL
  SAVINGS BANK

  	
   

  	
  GOLDEN GRAIN ENERGY, LLC

  
	
   

  	
   

  	
   

  
	
  By: 

  	
  /s/ Eric
  Oftedahl

  	
   

  	
  By:

  	
  /s/ Walter Wendland

  
	
  Name:

  	
  Eric Oftedahl

  	
   

  	
  Name:

  	
  Walter Wendland

  
	
  Title:

  	
  Vice President

  	
   

  	
  Title:

  	
  President

  

 

 4

EXHIBIT
3A

THIRD AMENDED AND RESTATED

REVOLVING CREDIT NOTE

	
  $20,000,000

  	
   

  	
  Rochester, Minnesota

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  August    ,
  2007

  

 

FOR VALUE RECEIVED, the
undersigned, Golden Grain Energy, LLC, an Iowa limited liability company (“Borrower”), hereby promises to pay
to the order of Home Federal Savings Bank (together with any subsequent holder
hereof, “Lender”)
or its successors and assigns, at Post Office Box 6947, 1016 Civic Center Drive
N.W., Rochester, Minnesota 55903-6947, (a) on the Revolving Facility Maturity
Date (as defined in the Master Amended and Restated Credit Agreement between
Borrower and Lender dated as of November 14, 2006 and the Second Supplement to
the Master Amended and Restated Credit Agreement (Revolving and Letter of Credit
Facility) between Borrower and Lender, dated the same date, as amended by the
First Amendment to the Credit Agreement dated August __, 2007 (as the same may
be amended, restated, supplemented or otherwise modified from time to time)
collectively known as the “Credit
Agreement”) , the principal sum of Twenty Million and
No/100 Dollars ($20,000,000.00) or so much of the unpaid principal amount of
the Revolving Facility (as defined in the Credit Agreement) as has advanced by
Lender to Borrower pursuant to the Credit Agreement, and (b) on each date
specified in the Credit Agreement prior to the Revolving Facility Maturity
Date, the principal amount of the Revolving Loans payable to Lender on such
date as specified therein, in lawful money of the United States of America in
immediately available funds, and to pay interest from the Closing Date on the
unpaid principal amount thereof from time to time outstanding, in like funds,
at said office, at the rate or rates per annum and payable on such dates as
provided in the Credit Agreement. Borrower also promises to pay Default
Interest and Additional Interest (each as defined in the Credit Agreement), on
demand, on the terms and conditions set forth in the Credit Agreement.  In addition, should legal action or an attorney-at-law
be utilized to collect any amount due hereunder, Borrower further promises to
pay all costs of collection, including the reasonable attorneys’ fees of
Lender.  THIS THIRD AMENDED AND RESTATED
REVOLVING CREDIT NOTE RESTATES AND AMENDS THE “SECOND AMENDED AND RESTATED
REVOLVING CREDIT NOTE” ISSUED ON NOVEMBER 14, 2006, BY BORROWER TO LENDER, AND
SHALL NOT BE CONSIDERED A NOVATION OF SUCH NOTE.

All borrowings evidenced
by this Third Amended and Restated Revolving Note and all payments and prepayments
of the principal hereof and the date thereof shall be recorded by Lender in its
internal records; provided, that the failure of Lender to make such a
notation or any error in such notation will not affect the obligations of
Borrower to make the payments of principal and interest in accordance with the
terms of this Third Amended and Restated Revolving Note and the Credit
Agreement.

This Third Amended and
Restated Revolving Note is issued in connection with, and is entitled to the
benefits of, the Credit Agreement which, among other things, contains
provisions for the acceleration of the maturity hereof upon the happening of
certain events, all upon the terms and conditions therein specified.

 5
 

THIS THIRD AMENDED AND
RESTATED REVOLVING CREDIT NOTE SHALL BE CONSTRUED IN ACCORDANCE WITH AND
GOVERNED BY THE LAWS OF THE STATE OF MINNESOTA AND ANY APPLICABLE LAWS OF THE
UNITED STATES OF AMERICA.

	
  

  	
  GOLDEN GRAIN ENERGY, LLC

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
  Walter Wendland

  	
   

  
	
   

  	
  Title:

  	
  President

  	
   

  
	
   

  	
   

  	
   

  	
   

  
						

 

 6

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