Document:

Exhibit
10(tt)

MGP
INGREDIENTS, INC. SHORT-TERM INCENTIVE PLAN

This MGP INGREDIENTS, INC. SHORT-TERM INCENTIVE PLAN (“Plan”)
is a program for measuring financial performance in terms of increases in
Modified Economic Profit (“MEP”), and providing eligible Employees with
incentive compensation based upon MEP results. The objective of the Plan is to
encourage initiative, resourcefulness, teamwork, motivation, and efficiency on
the part of all Participants that will result in financial success for both the
stockholders of the Company and the Participants. The Plan provides annual
incentive compensation for eligible Employees who are in a position to make
substantial contributions toward achievement of the financial performance goals
established pursuant to the Plan.

SECTION 1

ESTABLISHMENT OF PLAN

1.1          Plan Document

This instrument, as amended from time to time,
constitutes the governing document of the Plan.

1.2          Effective Dates

The effective date of the Plan is July 1, 2007. The
Plan will apply for five Fiscal Years from the effective date.

1.3          Incentive Compensation Plan

The Plan is an annual compensation program for
eligible Employees. Because the Plan does not provide welfare benefits and does
not provide for the deferral of compensation to termination of employment, it
is established with the intent and understanding that it is not an employee
benefit plan within the meaning of the employee Retirement Income Security Act
of 1974, as amended. It is intended that any award under the Plan will not be
subject to Section 409A of the Code.

SECTION 2

DEFINITIONS

The following terms shall have the definition stated,
unless the context requires a different meaning:

2.1          Affiliate

“Affiliate” shall have
the meaning ascribed to such term in Rule 12b-2 of the General Rules and
Regulations of the Exchange Act.

2.2          Beneficial Owner or Beneficial
Ownership

“Beneficial owner” or “Beneficial
Ownership” shall have the meaning ascribed to such term in the Rule 13d-3 of
the General Rules and Regulations of the Exchange Act.

2.3          Beneficiary

“Beneficiary” means the individual, trust, or other
entity designated by the Participant to receive any incentive compensation
payable with respect to the Participant under the Plan after the Participant’s
death. A Participant may designate or change a Beneficiary by filing a signed
designation with the Secretary of the Company in a form approved by the
Committee.

If a designation has not been completed properly and
filed with the Company or is ineffective for any other reason, the Beneficiary
shall be the Participant’s Surviving Spouse. If there is no effective
designation and the Participant does not have a Surviving Spouse, the remaining
benefits, if any, shall be paid to the Participant’s estate.

2.4          Board of Directors

“Board” or “Board of Directors” means the Board of
Directors of the Company.

2.5          Change in Control

A Change in Control shall
mean:

(i)       The acquisition (other than from the Company) by any Person,
entity or “group,” within the meaning of Section 13(d)(3) or 14(d)(2) of the
Exchange Act (excluding, for this purpose, the Company or its subsidiaries, any
employee benefit plan of the Company or its subsidiaries, trustees of the MGP
Ingredients, Inc. Voting Trust or of the Cray Family Trust, or any person who
acquires Common or Preferred Stock from Cloud L. Cray, Jr. or from any trust
controlled by or for the benefit of Cloud L. Cray, Jr. prior to or as a result
of his death) of Beneficial Ownership (within the meaning of Rule 13d-3
promulgated under the Exchange Act) of at least 30% of the then outstanding
shares of common stock and 50% of the then outstanding shares of preferred
stock, par value $10 per share, or 30% of the combined voting power of the
Company’s then outstanding voting securities entitled to vote generally in the
election of directors; or

(ii)      Individuals who, as of the date hereof, constitute the Board
(as of the date hereof the “Incumbent Board”) cease for any reason to
constitute at least a majority of the Board, provided that any Person becoming
a director subsequent to the date hereof whose election, or nomination for
election by the Company’s stockholders, was approved by a vote of at least a
majority of the directors then comprising the Incumbent Board (other than an
election or nomination of an individual whose initial assumption of office is
in connection with an actual or 

 2
 

threatened election contest relating to the election of the directors
of the Company) shall be, for purposes of this Plan, considered as though such
Person were a member of the Incumbent Board; or

(iii)     Approval by the stockholders of the Company of a reorganization,
merger, consolidation, in each case, with respect to which persons who were the
stockholders of the Company immediately prior to such reorganization, merger or
consolidation do not, immediately thereafter, own collectively as a group more
than 50% of the combined voting power entitled to vote generally in the
election of directors of the reorganized, merged or consolidated company’s then
outstanding voting securities, or a liquidation or dissolution of the Company
or of the sale of all or substantially all of the assets of the Company.

If any of the events
enumerated in clauses (i) through (iii) occur, the Board shall determine the
effective date of the Change in Control resulting therefrom for purposes of the
Plan.

2.6          Code

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

2.7          Committee

“Committee” means the Human Resources and Compensation
Committee of the Board of Directors and shall be comprised entirely of
Directors who are considered “outside directors” under Section 162(m) of the
Code.

2.8          Company

“Company” means MGP Ingredients, Inc., a Kansas
corporation, including all consolidated subsidiaries.

2.09        Director

“Director” means any individual who is a member of the
Board.

2.10        Exchange Act

“Exchange Act” means the
Securities and Exchange Act of 1934, as amended from time to time, or any
successor act thereto.

2.11        Employee

“Employee” means a salaried, full-time Employee of the
Company or of any consolidated subsidiary.

 3
 

2.12        Fiscal Year

“Fiscal Year” means the
financial reporting and taxable year of MGP Ingredients, Inc.

2.13        MEP

“MEP” refers to Modified Economic Profit and means net
income from operations as reported on Form 10-K, net of the effective income
tax rate for the specified Fiscal Year (“NOPAT”), minus a charge representing
the weighted economic cost of capital to the Company (“C”) multiplied by the
sum of current assets (excluding cash) minus current liabilities plus property,
plant and equipment, net of depreciation, plus good will plus other long term
assets (“TC”). The formula for determining MEP is: MEP = NOPAT — (C x TC). MEP
for a Fiscal Year shall be based upon the audited financial statements of the
Company for the Fiscal Year; provided, the Committee may determine whether the
calculation of MEP should include or exclude, in whole or in part, any unusual
or non-recurring item or adjusted to reflect any unusual or non-recurring item.

2.14        Normal Retirement Date

“Normal Retirement Date” means the date the Participant
attains age 62.

2.15        Participant

“Participant” means an Employee designated to
participate in this Plan for a Plan Year pursuant to Section 4.

2.16        Person

“Person” shall have the meaning ascribed to such term
in Section 3(a)(9) of the Exchange Act, as modified and used in Sections 13(d)
and 14(d) thereof, including a “group” as defined in Section 13(d) thereof,
except that such term shall not include (i) the Company or any of its
subsidiaries, (ii) a trustee or other fiduciary holding securities under an
employee benefit plan of the Company or any of its Affiliates, (iii) an
underwriter temporarily holding securities pursuant to an offering of such
securities, or (iv) a corporation owned, directly or indirectly, by the
stockholders of the Company in substantially the same proportions as their
ownership of stock of the Company.

2.17        Plan Year

“Plan Year” means the
Fiscal Year of the Company, as in effect at the time.

 4
 

2.18        Retirement

“Retirement” means
termination of employment on or after the Participant’s Normal Retirement Date.

2.19        Surviving Spouse

“Surviving Spouse” means the spouse of the Participant
at the time of the Participant’s death who survives the Participant. If the
Participant and spouse die under circumstances that make the order of their
deaths uncertain, it shall be presumed for purposes of this Plan that the
Participant survived the spouse.

2.20        Total Disability

“Total Disability” or “Disability” shall mean the
inability of a Participant to perform substantially such Participant’s duties
and responsibilities due to a physical or mental condition that would entitle
such Participant to benefits under the Company’s Long-Term Disability Plan (or
any successor to the plan in effect on the date of adoption of this Plan) or,
if no such plan is in effect, such condition as would enable the Participant to
receive an award for permanent and total disability from the Social Security
Administration. The determination of Total Disability shall be made by the
Committee through procedures established for that purpose and on the basis of
reasonable medical examinations. The cost of any medical examination shall be
an expense of administration of the Plan.

SECTION 3

ADMINISTRATION OF PLAN

3.1          Administration of Plan by Committee

The Plan shall be administered by the Committee. The
Committee shall have full discretionary authority in the operation and
administration of the Plan. The Committee must approve any award under the Plan
prior and, subject to the limitations set forth below, may modify any award
prior to its payment. The Committee shall act by vote or consent of a majority
of its members. To the extent necessary or appropriate, the Committee will
adopt rules, policies, and forms for the administration, interpretation, and
implementation of the Plan. The Committee may delegate administrative authority
and responsibility from time to time to and among other committees approved by
the Committee and individual Employees of the Company, but all actions taken
pursuant to delegated authority and responsibility shall be subject to review
and change by the Committee.

A member of the Committee or individual or group to
whom authority is delegated shall not participate in any action of the
Committee directly affecting that member, individual or group.

 5
 

3.2          Responsibility; Indemnification

 The Committee and each member thereof, and any
person acting pursuant to authority delegated by the Committee, shall be
entitled, in good faith, to rely or act upon any report or other information
furnished by any executive officer, other officer or employee of the Company or
a subsidiary or affiliate, the Company’s independent auditors, consultants or
any other agents assisting in the administration of the Plan. Members of the
Committee, any person acting pursuant to authority delegated by the Committee,
and any officer or employee of the Company or a subsidiary or affiliate acting
at the direction or on behalf of the Committee or a delegee shall not be
personally liable for any action or determination taken or made in good faith
with respect to the Plan, and shall, to the extent permitted by law, be fully
indemnified, held harmless and protected by the Company with respect to any
such action or determination

SECTION 4

ELIGIBILITY

4.1          Participation

An Employee shall be a Participant in the Plan for a
Plan Year upon designation as a Participant for that year by the Committee.
When deemed appropriate by the Committee, the Committee may designate an
effective date for the commencement of participation by an Employee that is
subsequent to the first day of the Plan Year.

Designated Participants shall be notified in writing
and provided a written summary of the Plan.

4.2          Continuing Participation

Designation as a Participant for a Plan Year will
continue in effect for each succeeding Plan Year until participation is
terminated by the Committee. The Committee may terminate participation by an
Employee at any time with or without cause. In such case, at the discretion of
the Committee, the Participant will receive the excess, if any, of (a) his or
her percentage interest in any excess amounts previously carried over to the
Bank herein described which remain unpaid (subject to prior reductions, if any)
over (b) his or her percentage interest in any amounts previously paid from the
Bank that were in excess of amounts earned with respect to the year or years
for which such amounts were paid. Such payment, if any, will be made within 2
1/2 months following termination of such Employee’s participation in the Plan.

 6
 

SECTION 5

MEASUREMENT OF COMPANY PERFORMANCE

5.1          MEP Performance

For purposes of the Plan,
financial performance of the Company shall be measured by MEP. In general, the
Plan shall be administered so that the incentive compensation provided to a
Participant under the Plan for each Plan Year is based on improved MEP
performance relative to prior MEP performance, initially measured for Fiscal
2008 from the MEP for Fiscal Year 2007 (the Fiscal Year ended July 1, 2007).

5.2          Determination of MEP

MEP shall be determined for each Fiscal Year by the
Committee. Subject to Section 5.4, MEP for a Fiscal Year shall be based upon
the audited financial statements of the Company for the Fiscal Year.

5.3          MEP Growth Target

The MEP growth performance targets for each Plan Year
shall be determined by the Committee and communicated to Participants.

5.4          Adjustments

The Committee may determine whether the calculation of
MEP should include or exclude, in whole or in part, any unusual or
non-recurring item or adjusted to reflect any unusual or non-recurring item and
may make such other adjustments as permitted by Section 9.

SECTION 6

INCENTIVE COMPENSATION TARGETS

6.1          Target Incentive Compensation

The target annual
incentive compensation for each Participant for each Plan Year shall be
determined by the Committee for each Plan Year.

SECTION 7

DETERMINATION AND PAYMENT OF INCENTIVE AMOUNTS

7.1          Plan Year MEP

MEP and MEP growth performance, including any
necessary or appropriate adjustments required or permitted hereunder, shall be
determined as soon as administratively practicable following the availability
of final financial results for the Plan Year.

7.2          Determination of Incentive
Compensation

Under rules established by the Committee, the
incentive compensation for each Participant for each Plan Year shall be calculated
by the following steps:

 7
 

(a)                                  Incentive Compensation. Subject to Section
7.2(b), annual incentive compensation for each Participant for the Plan Year
shall be determined by allocating among the Participants the total annual
incentive compensation payable based upon a point system or a percentage of
base pay, as determined by the Committee. If a Participant’s base pay changes
during a Plan Year, proportionate annual compensation shall be calculated,
under the rules established by the Committee, for each period of the Plan Year
that each level of base pay was in effect. The proportionate incentive
compensation for each level of base pay shall be calculated by annualizing that
level of base pay, multiplying by the applicable annual incentive percentage for
that level of base pay, and then multiplying the resulting amount by a
fraction, the numerator of which is the number of days during the Plan Year
that the level of base pay was in effect and the denominator of which is the
number of days in the Plan Year.

(b)                                 Incentive Compensation Calculations.

(i)     The
Committee shall establish a Bank (the “Bank”) of incentive compensation amounts
and shall designate the amount of the initial Bank (the “Initial Bank”).  Growth in MEP shall initially be measured from
MEP for the Fiscal Year ending July 1, 2007. The amount of incentive
compensation payable to Participants with respect to a Fiscal Year will be
determined as follows.

·                  When a minimum
annual increase in MEP established by the Committee is achieved, that amount
will be paid out promptly as incentive compensation. Any excess MEP over the
minimum annual increase is to be added to the Bank and, in addition to the
minimum annual increase amount, an amount equal to one-third of the resulting
Bank amount less one-fifth of the amount of the Initial Bank, if positive, is
also to be paid out promptly. The balance of excess MEP allocated to the Bank
is to be available for payment as a part of annual incentive compensation in
subsequent years.

·                  In the event
that the minimum increase in MEP is not achieved but MEP is still positive, the
amount of the change in MEP will be paid out promptly as incentive
compensation. In addition, an amount equal to one-third of the then existing
Bank less one-fifth of the amount of the Initial Bank, if positive, is also to
be paid out promptly.

·                  In the event
that the change in MEP is negative, the existing Bank will be reduced by the
amount of the negative change in MEP, but not to exceed the minimum annual
increase amount. An amount equal to one-third of the resulting Bank less
one-fifth of the amount of the Initial Bank, if positive, will be paid out
promptly.

(ii)    Upon
termination of the Plan, persons who are then Participants will receive the
excess, if any, of (a) their respective percentage interests in any excess
amounts previously carried over to the Bank herein described which remain
unpaid (subject to prior reductions, if 

 8
 

any) over (b) their respective percentage interests in any amounts
previously paid from the Bank that were in excess of amounts earned with
respect to the year or years for which such amounts were paid. Such payment, if
any, will be made within 2 1/2 months following termination of the Plan.

7.3          Payment of Incentive Amounts

(a)                                  Annual
Compensation. The dollar amount of the annual incentive compensation for a
Plan Year shall be paid in a lump sum to the Participant as soon as feasible
following the completion of the incentive compensation calculations for the
Plan Year, but in no event later than two and one-half months following the end
of the calendar year in which occurs the end of the Company’s applicable Fiscal
Year.

7.4          Partial Year Participation, Employment
Changes and Forfeitures

(a)                                  Partial
Year Participation. If an Employee is designated to become a Participant in
a Plan Year as of a date other than the first day of the Plan Year, the
Participant’s incentive compensation for the Plan Year shall be determined on
the basis of the Participant’s time of participation during the Plan Year.

(b)                                  Employment
Changes. Target incentive percentages and incentive awards for a
Participant for a Plan Year will be prorated in the event of any change in
compensation or employment status or location, or any other change that would
effect the determination for the Plan Year, in proportion to the duration of
each applicable factor during the Plan Year.

(c)                                  Retirement,
Death or Disability. If a Participant’s employment terminates during a Plan
Year by reason of Retirement, death, or Total Disability, the annual component
of the Participant’s incentive compensation dollar amount for the Plan Year, if
any, shall be prorated and the Participant will be entitled to receive at the
time provided in Section 7.3(a) such prorated amount less such Participant’s
percentage interest in any amounts previously paid from the Bank that were in
excess of amounts earned with respect to the year or years for which such
amounts were paid.

(d)                                  Other
Termination of Employment. Except as otherwise provided in this subsection
(d), upon termination of a Participant’s employment during a Plan Year for any
reason other than Retirement, death, or Total Disability, the Participant shall
not be entitled to the payment of incentive compensation for the Plan Year. Notwithstanding
the preceding sentence, the Committee shall have full discretion to determine
that payment of a prorated annual component may be made when termination of the
Participant’s employment results from job elimination, reduction in work force
or other similar Company initiative or is otherwise without cause, or is
encouraged or induced by incentives offered by the Company. If allowed, any
such prorated amount would be reduced by such Participant’s percentage interest
in any amounts previously paid from the Bank that were in excess of amounts
earned with respect to the year or years for which such amounts were paid.

 9
 

(e)                                  Committee
Discretion. Pursuant to the powers conferred in Section 9, the Committee
may make other rules and exceptions applicable to participation and employment
changes.

7.5          Reports

As of the end
of each Plan Year, the Committee shall provide to each Participant information
concerning current and cumulative MEP performance and credits and debits in the
Bank.

SECTION 8

CHANGE
IN CONTROL

8.1          Annual Incentive Compensation

Upon a Change
in Control, the Plan shall terminate and distributions will be made to persons
who are then Participants as provided in Section 7.2(b)(ii).

SECTION 9

COMMITTEE DISCRETION

The Committee shall exercise all of its power and
duties as the Committee deems appropriate in its sole and absolute discretion.
All decisions of the Committee shall be final and binding on all Participants
and their respective heirs and representatives. In the event it is determined,
in the judgment and discretion of the Committee, that any factor applicable in
the ultimate determination of incentive compensation under the Plan for a Plan
Year is not appropriate with respect to one or more Participants due to unusual
events, unforeseen circumstances, or other factors deemed material and relevant,
the applicable factor or the amount of the resulting incentive compensation may
be adjusted or modified in any manner deemed appropriate by the Committee.

SECTION
10

AMENDMENT AND TERMINATION

10.1        Amendment

The Plan may be amended
in any manner at any time by action of the Board of Directors.

SECTION 11

GENERAL
PROVISIONS

11.1        Benefits Not Guaranteed

Neither the establishment
and maintenance of the Plan nor participation in the Plan shall provide any
guarantee or other assurance that incentive compensation will be payable under
the 

 10
 

Plan. The success
of MGP Ingredients, Inc. and its Affiliates, as determined hereunder, and
adjusted as provided herein, and application of the administrative rules and
determinations by the Committee shall determine the extent to which
Participants are entitled to receive incentive compensation payments hereunder.

11.2        No Right to Participate

Nothing in this Plan
shall be deemed or interpreted to provide a Participant or any
non-participating Employee with any contractual right to participate in or
receive benefits of the Plan. No designation of an Employee as a Participant
for all or any part of a Plan Year shall create a right to incentive
compensation or other benefits of the Plan for any other Plan Year.

11.3        No Employment Right

Participation in this Plan shall not be construed as
constituting a commitment, guarantee, agreement, or understanding of any kind
that the Company will continue to employ an individual, and this Plan shall not
be construed or applied as any type of employment contract or obligation.
Nothing herein shall abridge or diminish the rights of the Company to determine
the terms and conditions of employment of any Participant or other employee or
to terminate the employment of any Participant or other Employee with or
without cause at any time.

11.4        No Assignment or Transfer

Neither a Participant nor any beneficiary or other
representative of a Participant shall have any right to assign, transfer,
attach, or hypothecate any incentive compensation amount or credit, potential
payment, or right to future payments of any incentive compensation amount or
credit, or any other benefit provided under this Plan. Payment of any amount
due or to become due under this Plan shall not be subject to the claims of creditors
of the Participant or to execution by attachment or garnishment or any other
legal or equitable proceeding or process.

11.5        Withholding and Payroll Taxes

The Company shall deduct from any payment made under
this Plan all amounts required by federal, state, and local tax laws to be
withheld and shall subject any payments made under the Plan to all applicable
payroll taxes and assessments.

11.6        Incompetent Payee

If the Committee
determined that a person entitled to a payment hereunder is incompetent, it may
cause benefits to be paid to another person for the use or benefit of the
Participant or the Participant’s beneficiary at the time or times otherwise
payable hereunder, in total discharge of the Plan’s obligations to the
Participant or beneficiary.

11.7        Section 409A

It is intended that the Plan and awards issued
hereunder will be exempt from Section 409A of the Code (and any regulations and
guidelines issued thereunder) because the Plan and the awards do not provide
for the deferral of compensation, and the Plan and such awards shall 

 11
 

be interpreted on a basis
consistent with such intent. The Plan and any award agreements issued
thereunder may be amended in any respect deemed by the Board or the Committee
to be necessary in order to preserve exemption with Section 409A of the Code.

11.8        Governing Law

The provisions of the
Plan shall be construed and governed under the laws of the State of Kansas.

11.9        Construction

The singular includes the plural, and the
plural includes the singular, and terms connoting gender include both the
masculine and feminine, unless the context clearly indicates the contrary.
Capitalized terms, except those at the beginning of a sentence or part of a
heading, have the meaning defined in the Plan.

SECTION 12

EXECUTION

IN WITNESS WHEREOF, MGP Ingredients, Inc. has caused
this Plan to be executed by its duly authorized officer this 4th day of
September, 2007.

	
  

  	
  MGP INGREDIENTS, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Ladd Seaberg

  
	
   

  	
  Title:

  	
  Chairman &
  CEO

  

 

 12Exhibit 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

Master
Plan Document

 

 

 

As Amended and Restated

 

Effective January 1, 2005

 

 

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

  	
   

  	
  14

  
	
  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

  	
   

  	
  16

  
	
   

  	
   

  	
   

  	
   

  
	
  6.1

  	
  Termination Benefit

  	
   

  	
  16

  
	
  6.2

  	
  Payment of Termination Benefit

  	
   

  	
  16

  

 

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

  	
   

  	
  17

  
	
   

  	
   

  	
   

  	
   

  
	
  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

  	
   

  	
  19

  
	
  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

  	
   

  	
  24

  
	
  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

 

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.

 

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 Year. In the event of a
Participant’s Retirement, Disability, death or Termination of Employment

 

1

 

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 5.1(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         “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.

 

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

 

1.36         “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.

 

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

 

1.38         “Retirement”, “Retire(s)”
or “Retired” shall mean, with respect to an Employee, separation from service
with all Employers 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.

 

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

 

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

 

1.41         “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.

 

1.42         “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.

 

1.43         “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.

 

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

 

1.45         “Termination of
Employment” shall mean the separation from service with all Employers,
voluntarily or involuntarily, for any reason other than Retirement, Disability,
death or an authorized leave of absence.

 

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

 

1.47         “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

 

5

 

the Senior Vice President of Human Resources or, in the case of a
Section 16 Officer, the Committee.

 

1.48         “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.

 

(a)           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.

 

(b)           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.

 

(c)           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

 

6

 

foregoing, the Company shall process such Participant’s deferral
election as soon as administratively practicable after such deferral election
is submitted to the Company.

 

(d)           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) terminate any
deferral election the Participant has made for the remainder of a Plan Year,
(ii) prevent the Participant from making future deferral elections, and/or
(iii) 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 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.

 

7

 

(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 Plan, no later than six months
before the end of the performance period. “Performance-based compensation”
shall be compensation based on services performed

 

8

 

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 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

 

9

 

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 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 PRC, 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 PRC, 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
PRC 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 PRC 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 PRC from time to time, in
its 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

 

10

 

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

 

11

 

(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 Distribution
shall be a lump sum payment in an amount that is equal to the portion of the
Annual

 

12

 

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)          The election to modify
the Retirement Benefit shall have no effect until at least 12 months after
the date on which the election is made; and

 

(iv)          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 Retirement Benefit 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.
Accordingly, if a Participant’s subsequent distribution election would result
in the shortening of the length of the payment period (e.g., a Participant
changes an existing distribution election from annual installments to a lump
sum payment; from 10 annual installments to five annual installments,
etc.), and the Company, the Committee and the Senior Vice President of Human
Resources, as applicable, determines such election to be inconsistent with Code
Section 409A and other applicable tax law, the election shall not be effective.

 

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.

 

15

 

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 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

 

16

 

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.

 

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, that to the extent permissible under
Code Section 409A and related Treasury Regulations and guidance,
including but not limited to such guidance and Regulations as may be
issued after the effective date of this Plan, if there is a Termination of the
Plan with respect to all Participants, 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.

 

18

 

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.

 

13.4         Indemnity.  All Employers shall indemnify and hold
harmless the members of the Committee, the PRC, the CEO, the Senior Vice
President of Human Resources, any Employee to whom

 

19

 

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;

 

21

 

(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

 

(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

 

22

 

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 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.

 

23

 

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.

 

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

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