Document:

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                                                                    Exhibit 10.5

          1996 LONG TERM INCENTIVE PLAN OF PRIMEX TECHNOLOGIES, INC.

Section 1. Purpose
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The purposes of the 1996 Long Term Incentive Plan of Primex Technologies, Inc.
(the "Plan") are to encourage selected salaried employees of Primex
Technologies, Inc. (together with any successor thereto, "Primex" or
"Corporation") and its Affiliates (as defined below) to acquire a proprietary
interest in Primex's growth and performance, to generate an increased incentive
to contribute to Primex's future success and to enhance the ability of Primex
and its Affiliates to attract and retain qualified individuals.

Section 2. Definitions
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As used in the Plan:

(a)  "Affiliate" means (i) any entity that, directly or through one or more
     intermediaries, is controlled by Primex and (ii) any entity in which Primex
     has a significant equity interest as determined by the Committee.

(b)  "Award" means any Option, Stock Appreciation Right, Restricted Stock,
     Restricted Stock Unit, Performance Award, Dividend Equivalent or Other
     Stock-Based Award granted under the Plan.

(c)  "Award Agreement" means any written agreement or other instrument or
     document evidencing an Award granted under the Plan.  The terms of any plan
     or guideline adopted by the Board or the Committee and applicable to an
     Award shall be deemed incorporated in and a part of the related Award
     Agreement.

(d)  "Board" means the Board of Directors of Primex.

(e)  "Code" means the Internal Revenue Code of 1986, as amended from time to
     time.

(f)  "Committee" means a committee of the Board designated by the Board to
     administer the Plan and composed of not fewer than two directors each of
     whom shall be a Non-Employee Director as defined by Rule 16b-3.

(g)  "Dividend Equivalent" means any right granted under Section 6(f)(iv) of the
     Plan.

(h)  "Fair Market Value" means, with respect to any property (including, without
     limitation, Shares or other securities), the fair market value of such
     property determined by such methods or procedures as shall be established
     from time to time by the Committee.
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(i)  "Incentive Stock Option" means an option to purchase Shares granted under
     Section 6(a) of the Plan that is intended to meet the requirements of
     Section 422 of the Code or a successor provision thereto.

(j)  "Non-Qualified Stock Option" means an option to purchase Shares granted
     under Section 6(a) of the Plan that is not intended to be an Incentive
     Stock Option.

(k)  "Olin" means Olin Corporation, a Virginia corporation, and its successors.

(l)  "Option" means an Incentive Stock Option or a Non-Qualified Stock Option.

(m)  "Other Stock-Based Award" means any right granted under Section 6(e) of the
     Plan.

(n)  "Participant" means a Salaried Employee granted an Award under the Plan.

(o)  "Performance Award" means any right granted under Section 6(d) of the Plan.

(p)  "Person" means any individual, corporation, partnership, association,
     joint-stock company, trust, unincorporated organization, or government or
     political subdivision thereof.

(q)  "Released Securities" means securities that were Restricted Securities with
     respect to which all applicable restrictions imposed under the terms of the
     relevant Award have expired, lapsed or been waived or satisfied.

(r)  "Restricted Securities" means Awards of Restricted Stock or other Awards
     under which outstanding Shares are held subject to certain restrictions.

(s)  "Restricted Stock" means any Share granted under Section 6(c) of the Plan.

(t)  "Restricted Stock Unit" means any right granted under Section 6(c) of the
     Plan that is denominated in Shares.

(u)  "Rule 16b-3" means Rule 16b-3 promulgated by the Securities and Exchange
     Commission under the Securities Exchange Act of 1934, as amended, or any
     successor rule.

(v)  "Salaried Employee" means any salaried employee of Primex or of an
     Affiliate.

(w)  "Shares" means the Common Stock of Primex and such other securities or
     property as may become the subject of Awards pursuant to an adjustment made
     under Section 4(b) of the Plan.

(x)  "Stock Appreciation Right" means any right granted under Section 6(b) of
     the Plan.

Section 3.  Administration
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The Plan shall be administered by the Committee which shall have full power and
authority to:  (i) designate Participants; (ii) determine the Awards to be
granted to Participants; (iii)

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determine the number of Shares (or securities convertible into Shares) to be
covered by Awards; (iv) determine the terms and conditions of any Award; (v)
determine whether, to what extent, and under what circumstances Awards may be
settled or exercised in cash, Shares, other securities, other Awards, or other
property, or canceled, substituted, forfeited or suspended, and the method or
methods by which Awards may be settled, exercised, canceled, substituted,
forfeited or suspended; (vi) determine whether, to what extent, and under what
circumstances cash, Shares, other securities, other Awards, other property and
other amounts payable with respect to an Award under the Plan shall be deferred
either automatically or at the election of the Participant or of the Committee;
(vii) interpret and administer the Plan and any instrument or agreement relating
to, or Award made under, the Plan; (viii) establish, amend, suspend or waive
such rules and guidelines and appoint such agents as it shall deem appropriate
for the administration of the Plan; and (ix) make any other determination and
take any other action that it deems necessary or desirable for such
administration. All designations, determinations, interpretations and other
decisions with respect to the Plan or any Award shall be within the sole
discretion of the Committee and shall be final, conclusive and binding upon all
Persons, including Primex, any Affiliate, any Participants, any holder or
beneficiary of any Award, any shareholder and any employee of Primex or of any
Affiliate. All powers and responsibilities of the Committee provided in the Plan
may also be exercised by the Board at any time.

Section 4.  Shares Available for Awards
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(a)  Shares Available.  Subject to adjustment as provided in Section 4(b) of the
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     Plan:

     (i)  The aggregate number of Shares available for granting Awards under the
          Plan shall be  700,000.  If an Award is denominated in or relates to a
          security of Primex convertible into its Common Stock, the number of
          shares of Common Stock into which such security shall be convertible
          (calculated as of the date of grant of the Award, subject to
          adjustment as provided in Section 4(b) hereof or under the terms of
          such security) shall be deemed denominated in Shares and counted
          against the aggregate number of Shares available for the granting of
          Awards under the Plan.  If, after the effective date of the Plan,
          Shares subject to an Award granted under the Plan (other than
          Restricted Securities) are forfeited, or the Award otherwise
          terminates without the delivery of Shares or of other consideration,
          then the Shares subject to such Award or the number of Shares
          otherwise counted against the aggregate number of Shares available
          under the Plan with respect to such Award, to the extent of such
          forfeiture or termination, shall again be available for granting
          Awards under the Plan."  Any Award (other than a Dividend Equivalent)
          denominated in Shares shall be counted against the aggregate number of
          Shares available for granting Awards under the Plan even though the
          Award is ultimately paid in cash, provided that, notwithstanding the
          foregoing, (i) Stock Appreciation Rights payable solely in cash shall
          not be deemed to be an Award denominated in shares and (ii) an Award
          shall not be deemed denominated in Shares if the dollar amount of the
          Award is fixed at the time of grant by reference to the market value
          of Shares or otherwise.

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(ii)  For purposes of this Section 4:

            (A)  If an Award (other than a Dividend Equivalent) is denominated
                 in Shares, the number of Shares covered by such Award, or to
                 which such Award relates, shall be counted on the date of grant
                 of such Award against the aggregate number of Shares available
                 for granting Awards under the Plan; and

            (B)  Dividend Equivalents paid in Shares and Awards not denominated
                 in Shares but paid in Shares shall be counted against the
                 aggregate number of Shares available for granting Awards under
                 the Plan in such amount and at such time as the Committee shall
                 determine under procedures adopted by the Committee consistent
                 with the purposes of the Plan;

     provided, however, that Awards that operate in tandem with, or that are
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     substituted for, other Awards may be counted or not counted under
     procedures adopted by the Committee in order to avoid double counting.  Any
     Shares that are delivered by Primex, and any Awards that are granted by, or
     become obligations of, Primex, through the assumption by Primex or an
     Affiliate of, or in substitution for, outstanding awards previously granted
     by an acquired company shall not, except in the case of Awards granted to
     Salaried Employees who are officers or directors of Primex for purposes of
     Section 16 of the Securities Exchange Act of 1934, as amended, be counted
     against the Shares available for granting Awards under the Plan.

(b)  Adjustments.  In the event that the Committee determines that any dividend
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     or other distribution, recapitalization, stock split, reverse stock split,
     reorganization, merger, consolidation, split-up, spin-off, combination,
     repurchase or exchange of Shares or other securities of Primex, issuance of
     warrants or other rights to purchase Shares or other securities of Primex,
     or other similar corporate transaction or event affects the Shares such
     that an adjustment is determined by the Committee to be appropriate in
     order to prevent dilution or enlargement of the benefits intended to be
     made available under the Plan, then the Committee shall, in such manner as
     it may deem equitable, adjust any or all of (i) the number and type of
     Shares (or other securities or property) which thereafter may be made the
     subject of Awards, including the limitation contained in Section 4(c), (ii)
     the number and type of Shares (or other securities or property) subject to
     outstanding Awards, and (iii) the grant, purchase or exercise price with
     respect to any Award, or, if the Committee deems it appropriate, make
     provision for a cash payment to the holder of an outstanding Award;
     provided, however, that with respect to Awards of Incentive Stock Options,
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     no such adjustment shall be authorized to the extent that such authority
     would cause the Plan to violate Section 422 of the Code or any successor
     provision thereto.  Notwithstanding the foregoing, a Participant to whom
     Dividend Equivalents or dividend units have been awarded shall not be
     entitled to receive a special or extraordinary dividend or distribution
     unless the Committee shall have expressly authorized such receipt.

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(c)  Notwithstanding anything contained in this Plan to the contrary, grants to
     any one Participant of Awards which represent or are designated in Shares
     shall not exceed 70,000 Shares in any calendar year.

Section 5.  Eligibility
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Any Salaried Employee, including any officer or employee-director of Primex or
an Affiliate, who is not a member of the Committee shall be eligible to be
designated a Participant.

Section 6. Awards
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(a)  Options.  The Committee is authorized to grant Options to Participants with
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     the following terms and conditions and with such additional terms and
     conditions, not inconsistent with the provisions of the Plan, as the
     Committee shall determine:

           (i)   Exercise Price.  The purchase price per Share purchasable under
                 an Option shall be determined by the Committee; provided,
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                 however, that such purchase price shall not be less than the
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                 Fair Market Value of a Share on the date of grant of such
                 Option.

          (ii)   Option Term. The term of each Option shall be fixed by the
                 Committee, provided that in no event shall the term of an
                 Option exceed a period of ten years from the date of its grant.

          (iii)  Exercise. The Committee shall determine the time or times at
                 which an Option may be exercised in whole or in part (but in no
                 event shall an Option be exercisable before the expiration of
                 six months from the date of its grant, subject to Section 9
                 thereof, or after the expiration of ten years from the date of
                 its grant), and the method or methods by which, and the form or
                 forms (including, without limitation, cash, Shares, other
                 Awards or other property, or any combination thereof, having a
                 Fair Market Value on the exercise date equal to the relevant
                 exercise price) in which, payment of the exercise price with
                 respect thereto may be made.

          (iv)   Incentive Stock Options. The terms of any Incentive Stock
                 Option granted under the Plan shall comply in all respects with
                 the provisions of Section 422 of the Code, or any successor
                 provision thereto, and any regulations promulgated thereunder.
                 Without limiting the preceding sentence, the aggregate Fair
                 Market Value (determined at the time an option is granted) of
                 Shares with respect to which Incentive Stock Options are
                 exercisable for the first time by a Participant during any
                 calendar year (under the Plan and any other plan of the
                 Participant's employer corporation and its parent and
                 subsidiary corporations providing for Options) shall not exceed
                 such dollar limitation as shall be applicable to Incentive
                 Stock Options under Section 422 of the Code or a successor
                 provision.

     (b)  Stock Appreciation Rights.  The Committee is authorized to grant Stock
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          Appreciation Rights to Participants which may but need not relate to a
          specific Option granted under

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          Section 6(a). Subject to the terms of the Plan and any applicable
          Award Agreement, each Stock Appreciation Right granted under the Plan
          shall confer on the holder thereof a right to receive, upon exercise
          thereof, up to the excess of (i) the Fair Market Value of one Share on
          the date of exercise over (ii) the exercise price of the right as
          specified by the Committee, which shall not be less than the Fair
          Market Value of one Share on the date of grant of the Stock
          Appreciation Right. Subject to the terms of the Plan and any
          applicable Award Agreement, the exercise price, term, methods of
          exercise, methods of payment or settlement and any other terms and
          conditions of any Stock Appreciation Right shall be as determined by
          the Committee, except that Stock Appreciation Rights related to
          Incentive Stock Options shall have the same terms and conditions as
          such Options, and in no event shall the term of a Stock Appreciation
          Right exceed a period of ten years from the date of its grant. In the
          case of any Stock Appreciation Right related to an Option, the Stock
          Appreciation Right or applicable portion thereof shall terminate and
          no longer be exercisable upon the termination or exercise of the
          related Option, except that a Stock Appreciation Right granted with
          respect to less than the full number of Shares covered by a related
          Option shall not be reduced until the exercise or termination of the
          related Option exceeds the number of shares not covered by the Stock
          Appreciation Right and then only to the extent of the excess. Any
          Option related to a Stock Appreciation Right shall no longer be
          exercisable to the extent the related Stock Appreciation Right has
          been exercised.

     (c)  Restricted Stock and Restricted Stock Units.
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            (i)   Issuance. The Committee is authorized to grant Awards of
                  Restricted Stock and Restricted Stock Units to Participants.

            (ii)  Restrictions. Shares of Restricted Stock and Restricted Stock
                  Units shall be subject to such restrictions as the Committee
                  may impose (including, without limitation, any limitation on
                  the right to vote a Share of Restricted Stock or the right to
                  receive any dividend or other right or property), which
                  restrictions may lapse separately or in combination at such
                  time or times, in such installments or otherwise, as the
                  Committee may deem appropriate, provided that in order for a
                  participant to vest in Awards of Restricted Stock or
                  Restricted Stock Units, the participant must remain in the
                  employ of Primex or an Affiliate for a period of not less than
                  six months commencing on the date of grant of the Award,
                  subject to Section 9 hereof and subject to relief for
                  specified reasons as may be approved by the Committee.

            (iii) Registration. Any Restricted Stock granted under the Plan may
                  be evidenced in such manner as the Committee may deem
                  appropriate, including, without limitation, book-entry
                  registration or issuance of a stock certificate or
                  certificates. In the event any stock certificate is issued in
                  respect of Shares of Restricted Stock granted under the Plan,
                  such certificate shall be registered in the name of the
                  Participant and when delivered to the Participant shall bear
                  an appropriate legend referring to the terms, conditions and
                  restrictions applicable to such Restricted Stock.

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     (iv)   Forfeiture. Except as otherwise determined by the Committee, upon
            termination of employment for any reason during the applicable
            restriction period, all Shares of Restricted Stock and all
            Restricted Stock Units still subject to restriction shall be
            forfeited and reacquired by Primex; provided, however, that the
            Committee may, in its sole discretion, waive in whole or in part any
            or all remaining restrictions with respect to Shares of Restricted
            Stock or Restricted Stock Units. Unrestricted Shares, evidenced in
            such manner as the Committee shall deem appropriate, shall be
            delivered to the holder of Restricted Stock promptly after such
            Restricted Stock shall become Released Securities.

(d)  Performance Awards.  The Committee is authorized to grant Performance
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     Awards to Participants.  Subject to the terms of the Plan and any
     applicable Award Agreement, a Performance Award granted under the Plan (i)
     may be denominated or payable in cash, Shares (including, without
     limitation, Restricted Stock), other securities, other Awards or other
     property and (ii) shall confer on the holder thereof rights valued as
     determined by the Committee and payable to, or exercisable by, the holder
     of the Performance Award, in whole or in part, upon the achievement of such
     performance goals during such performance periods as the Committee shall
     establish.  Subject to the terms of the Plan and any applicable Award
     Agreement, the performance goals to be achieved during any performance
     period, the length of any performance period, the amount of any Performance
     Award granted, and the amount of any payment or transfer to be made
     pursuant to any Performance Award shall be determined by the Committee,
     provided that a performance period shall be at least six months, subject to
     Section 9 thereof.

(e)  Other Stock-Based Awards.  The Committee is authorized to grant to
     ------------------------
     Participants such other awards denominated or payable in, valued in whole
     or in part by reference to, or otherwise based on or related to, Shares
     (including, without limitation, phantom Shares, securities convertible into
     Shares and dividend units), as are deemed by the Committee to be consistent
     with the purposes of the Plan, provided that such grants shall comply with
     Rule 16b-3 to the extent applicable and applicable law.  Subject to the
     terms of the Plan and any applicable Award Agreement, the Committee shall
     determine the terms and conditions of such Awards. Shares or other
     securities delivered pursuant to a purchase, exchange or conversion right
     granted under this Section 6(e) shall be issued for such consideration,
     which may be paid by such method or methods and in such form or forms,
     including, without limitation, cash, Shares, other securities, other
     Awards, or other property, or any combination thereof, as the Committee
     shall determine, the value of which consideration, as established by the
     Committee, shall not be less than the Fair Market Value of such Shares or
     other securities as of the date such purchase, exchange or conversion right
     is granted.

     Other Stock-based Award Agreements shall contain provisions dealing with
     the disposition of such Award in the event of termination of the
     Participant's employment prior to exercise, realization or payment of the
     Award.

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(f)  General.
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        (i)    No Cash Consideration for Awards. Participants shall not be
               required to make any cash payment for the granting of an Award
               except for such minimum consideration as may be required by
               applicable law.

        (ii)   Awards May Be Granted Separately or Together. Awards may be
               granted either alone or in addition to, in tandem with, or in
               substitution for any other Award or any award or benefit granted
               under any other plan or arrangement of Primex or any Affiliate,
               or as payment for or to assure payment of an award or benefit
               granted under any such other such plan or arrangement, provided
               that the purchase or exercise price under an Award encompassing
               the right to purchase Shares shall not be reduced by the
               cancellation of such Award and the substitution of another Award.
               Awards so granted may be granted either at the same time as or at
               a different time from the grant of such other Awards or awards or
               benefits.

        (iii)  Forms of Payment Under Awards. Subject to the terms of the Plan
               and of any applicable Award Agreement, payments to be made by
               Primex or an Affiliate upon the grant, exercise, or payment of an
               Award may be made in such form or forms as the Committee shall
               determine, including, without limitation, cash, Shares, other
               securities, other Awards, or other property or any combination
               thereof, and may be made in a single payment or transfer, in
               installments, or on a deferred basis, in each case in accordance
               with rules and procedures established by the Committee.

        (iv)   Dividend Equivalents or Interest. Subject to the terms of the
               Plan and any applicable Award Agreement, a Participant, including
               the recipient of a deferred Award, shall, if so determined by the
               Committee, be entitled to receive, currently or on a deferred
               basis, interest or dividends or interest or dividend equivalents,
               with respect to the Shares covered by the Award. The Committee
               may provide that any such amounts shall be deemed to have been
               reinvested in additional Shares or otherwise reinvested.
               Notwithstanding the award of Dividend Equivalents or dividend
               units, a Participant shall not be entitled to receive a special
               or extraordinary dividend or distribution unless the Committee
               shall have expressly authorized such receipt.

        (v)    Limits on Transfer of Awards. No Award (other than Released
               Securities) or right thereunder shall be assignable or
               transferable by a Participant, other than (unless limited in the
               Award Agreement) by will or the laws of descent and distribution
               (or, in the case of an Award of Restricted Securities, to
               Primex), except that an Option may be transferred by gift to any
               member of the holder's immediate family or to a trust for the
               benefit of one or more of such immediate family members, if
               expressly permitted in the applicable Award Agreement; provided,
               however, that, if so determined by the Committee, a Participant
               may, in the manner established by the Committee, designate a
               beneficiary or beneficiaries with respect to any Award to
               exercise the rights of the Participant,

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               and to receive any property distributable, upon the death of the
               Participant. Each Award, and each right under any Award, shall be
               exercisable, during the Participant's lifetime, only by the
               Participant or, if permissible under applicable law by the
               Participant's guardian or legal representative unless it is an
               Option and has been transferred as permitted hereby to a member
               of the Participant's immediate family or to a trust for the
               benefit of one or more of such immediate family members, in which
               case it shall be exercisable only by such transferee. For the
               purposes of this provision, a Participant's "immediate family"
               shall mean the Participant's spouse, children and grandchildren.
               No Award (other than Released Securities), and no right under any
               such Award, may be pledged, attached or otherwise encumbered
               other than in favor of Primex, and any purported pledge,
               attachment, or encumbrance thereof other than in favor of Primex
               shall be void and unenforceable against Primex or any Affiliate.

        (vi)   Term of Awards.  Except as otherwise expressly provided in the
               Plan, the term of each Award shall be for such period as may be
               determined by the Committee.

        (vii)  No Rights to Awards. No Salaried Employee, Participant or other
               Person shall have any claim to be granted an Award, and there is
               no obligation for uniformity of treatment of Salaried Employees,
               Participants or holders or beneficiaries of Awards under the
               Plan. The terms and conditions of Awards need not be the same
               with respect to each recipient. The prospective recipient of any
               Award under the Plan shall not, with respect to such Award, be
               deemed to have become a Participant, or to have any rights with
               respect to such Award, until and unless such recipient shall have
               executed an agreement or other instrument accepting the Award and
               delivered a fully executed copy thereof to the Company, and
               otherwise complied with the then applicable terms and conditions.

        (viii) Delegation. Notwithstanding any provision of the Plan to the
               contrary, the Committee may delegate to one or more officers or
               managers of Primex or any Affiliate, or a committee of such
               officers or managers, the authority, subject to such terms and
               limitations as the Committee shall determine, to grant Awards to,
               or to cancel, modify, waive rights or conditions with respect to,
               alter, discontinue, suspend, or terminate Awards held by,
               Salaried Employees who are not officers or directors of Primex
               for purposes of Section 16 of the Securities Exchange Act of
               1934, as amended.

        (ix)   Withholding. Primex or any Affiliate may withhold from any Award
               granted or any payment due or transfer made under any Award or
               under the Plan the amount (in cash, Shares, other securities,
               other Awards, or other property) of withholding taxes due in
               respect of an Award, its exercise or any payment under such Award
               or under the Plan, and take such other action as may be necessary
               in the opinion of Primex or Affiliate to satisfy all obligations
               for the payment of such taxes.

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        (x)    Other Compensation Arrangements. Nothing contained in the Plan
               shall prevent Primex or any Affiliate from adopting or continuing
               in effect other or additional compensation arrangements, and such
               arrangements may be either generally applicable or applicable
               only in specific cases.

        (xi)   No Right to Employment. The grant of an Award shall not be
               construed as giving a Participant the right to be retained in the
               employ of Primex or any Affiliate. Nothing in the Plan or any
               Award Agreement shall limit the right of Primex or an Affiliate
               at any time to dismiss a Participant from employment, free from
               any liability or any claim under the Plan or the Award Agreement.

        (xii)  Governing Law. The validity, construction and effect of the Plan
               and any rules and regulations relating to the Plan shall be
               determined in accordance with the laws of the State of Florida
               and applicable Federal law.

        (xiii) Severability. If any provision of the Plan or any Award is
               determined to be invalid, illegal or unenforceable in any
               jurisdiction, or as to any Person or Award, or would disqualify
               the Plan or any Award under any law deemed applicable by the
               Committee, such provision shall be construed or deemed amended to
               conform to applicable laws, or, if it cannot be so construed or
               deemed amended without, in the determination of the Committee,
               materially altering the intent of the Plan or the Award, such
               provision shall be stricken as to such jurisdiction, Person or
               Award, and the remainder of the Plan and any such Award shall
               remain in full force and effect.

        (xiv)  No Trust or Fund Created. Neither the Plan nor any Award shall
               create or be construed to create a trust or separate fund of any
               kind or a fiduciary relationship between Primex or any Affiliate
               and a Participant or any other Person. To the extent that any
               Person acquires a right to receive payments from Primex or any
               Affiliate pursuant to an Award, such right shall be no greater
               than the right of any unsecured general creditor of Primex or any
               Affiliate.

        (xv)   No Fractional Shares. No fractional Shares shall be issued or
               delivered pursuant to the Plan or any Award, and the Committee
               shall determine whether cash, other securities or other property
               shall be paid or transferred in lieu of any fractional Shares, or
               whether such fractional Shares or any rights thereto shall be
               canceled, terminated or otherwise eliminated.

        (xvi)  Share Certificates. All certificates for Shares or other
               securities delivered under the Plan pursuant to any Award or the
               exercise thereof shall be subject to such stop transfer orders
               and other restrictions as the Committee may deem advisable under
               the Plan or the rules, regulations and other requirements of the
               Securities and Exchange Commission, any stock exchange upon which
               such Shares or other securities are then listed, and any
               applicable Federal or state securities laws, and the Committee
               may cause a legend or legends to be put on any such certificates
               to make appropriate reference to such restrictions.

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        (xvii)   Conflict with Plan. In the event of any inconsistency or
                 conflict between the terms of the Plan and an Award Agreement,
                 the terms of the Plan shall govern.

        (xviii)  Notwithstanding any provision in this Plan to the contrary,
                 Awards granted under Sections 6(c), 6(d) or 6(e) and designated
                 by the Committee as being performance-based shall have as
                 performance measures any one of or any combination of any of
                 the following measures: Economic Value Added, Return on Equity
                 and Total Return to Shareholders. For purposes of the Plan,
                 "Economic Value Added" shall mean Primex's consolidated sales
                 less its operating costs (including tax) less a capital charge
                 based on Primex's cost of capital assets employed in its
                 business, "Return on Equity" shall mean consolidated income of
                 Primex after taxes and before the after-tax effect of any
                 special charge or gain and any cumulative effect of any change
                 in accounting, divided by average shareholders equity and
                 "Total Return to Shareholders" shall mean for the performance
                 period total return to shareholders of $100 worth of Shares for
                 such period assuming reinvestment of dividends on a quarterly
                 basis. The Committee shall determine the performance goals for
                 each such performance measure with respect to each such Award.

        (xix)    Death or Disability. In the event of the death or disability of
                 the holder of an Award while the holder is employed by Primex
                 or an Affiliate, [or, if holder is retired (at or after
                 attainment of age 55 with 10 years of service with the
                 Corporation or an Affiliate, including prior service with Olin
                 Corporation),] any outstanding Award will continue to be vested
                 and exercisable under the terms of the Plan. For purposes of
                 this Plan, a holder of an Award shall be considered disabled if
                 he is qualified under the Long-Term Disability Plan of Primex
                 Technologies, Inc.

Section 7.  Amendment and Termination
            -------------------------

(a)  Amendments to the Plan.  The Board may amend, suspend, discontinue or
     ----------------------
     terminate the Plan, including, without limitation, any amendment,
     suspension, discontinuation or termination that would impair the rights of
     any Participant, or any other holder or beneficiary of any Award
     theretofore granted, without the consent of any shareholder, Participant,
     other holder or beneficiary of an Award, or other Person; provided,
                                                               --------
     however, that, notwithstanding any other provision of the Plan or any Award
     -------
     Agreement, without the approval of the shareholders of Primex, no such
     amendment, suspension, discontinuation or termination shall be made that
     would permit any Award encompassing rights to purchase Shares to be granted
     with per Share purchase or exercise prices of less than the Fair Market
     Value of a Share on the date of grant thereof (except for any adjustment
     permitted by Section 4(b)); provided further that no amendment, suspension,
                                 -------- -------
     discontinuation or termination (i) that would impair the rights of such
     Participant, holder or beneficiary shall be made with respect to Section 9
     of the Plan after a Change in Control, as defined therein and (ii) may
     increase the amount of payment of any Award to any Participant.

                                       11
<PAGE>

(b)  Amendments to Awards.  The Committee may waive any conditions or rights
     --------------------
     with respect to, or amend, alter, suspend, discontinue, or terminate, any
     unexercised Award theretofore granted, prospectively or retroactively,
     without the consent of any relevant Participant or holder or beneficiary of
     an Award, provided that no amendment, alteration, suspension,
               --------
     discontinuation or termination of an Award that would impair the rights of
     such Participant, holder or beneficiary shall be made after a Change in
     Control, as defined in Section 9; provided further that the Committee may
     not increase the payment of any Award granted any Participant.

(c)  Adjustments of Awards Upon Certain Acquisitions.  In the event Primex or
     -----------------------------------------------
     any Affiliate shall assume outstanding employee awards or the right or
     obligation to make future such awards in connection with the acquisition of
     another business or another company, the Committee may make such
     adjustments, not inconsistent with the terms of the Plan, in the terms of
     Awards as it shall deem appropriate.

d)   Adjustments of Awards Upon the Occurrence of Certain Unusual or
     ---------------------------------------------------------------
     Nonrecurring Events.  The Committee may make adjustments in the terms and
     -------------------
     conditions of Awards in recognition of unusual or nonrecurring events
     (including, without limitation, the events described in Section 4(b)
     hereof) affecting Primex, any Affiliate, or the financial statements of
     Primex or any Affiliate, or of changes in applicable laws, regulations, or
     accounting principles, whenever the Committee determines that statements of
     Primex or any Affiliate, or of changes in applicable laws, regulations, or
     accounting principles, whenever the Committee determines that such
     adjustments are appropriate in order to prevent dilution or enlargement of
     the benefits to be made available under the Plan.

Section 8.  Additional Conditions to Enjoyment of Awards.
            --------------------------------------------

(a)  The Committee may cancel any unexpired, unpaid or deferred Awards if at any
     time the Participant is not in compliance with all applicable provisions of
     the Award Agreement, the Plan and the following conditions:

        (i) A Participant shall not render services for any organization or
            engage, directly or indirectly, in any business which, in the
            judgment of the Committee or, if delegated by the Committee to the
            Chief Executive Officer, in the judgment of such Officer, is or
            becomes competitive with Primex or any Affiliate, or which is or
            becomes otherwise prejudicial to or in conflict with the interests
            of Primex or any Affiliate. Such judgment shall be based on the
            Participant's positions and responsibilities while employed by
            Primex or an Affiliate, the Participant's post-employment
            responsibilities and position with the other organization or
            business, the extent of past, current and potential competition or
            conflict between Primex or an Affiliate and the other organization
            or business, the effect on customers, suppliers and competitors of
            the Participant's assuming the post-employment position, the
            guidelines established in the then current edition of Primex's Code
            of Business Conduct, and such other considerations as are deemed
            relevant given the applicable facts and circumstances. The
            Participant shall be free, however, to purchase as an investment or
            otherwise, stock or other securities of such organization or
            business so long as they are listed upon

                                       12
<PAGE>

           a recognized securities exchange or traded over the counter, and such
           investment does not represent a substantial investment to the
           Participant or a greater than 1% equity interest in the organization
           or business.

     (ii)  Participant shall not, without prior written authorization from
           Primex, disclose to anyone outside Primex, or use in other than
           Primex's business, any secret or confidential information, knowledge
           or data, relating to the business of Primex or an Affiliate in
           violation of his or her agreement with Primex or the Affiliate.

     (iii) A Participant, pursuant to his or her agreement with Primex or an
           Affiliate, shall disclose promptly and assign to Primex or the
           Affiliate all right, title and interest in any invention or idea,
           patentable or not, made or conceived by the Participant during
           employment by Primex or the Affiliate, relating in any manner to the
           actual or anticipated business, research or development work of
           Primex or the Affiliate and shall do anything reasonably necessary to
           enable Primex or the Affiliate to secure a patent where appropriate
           in the United States and in foreign countries.

(b) Notwithstanding any other provision of the Plan, the Committee in its sole
    discretion may cancel any Award at any time prior to the exercise thereof,
    if the employment of the Participant shall be terminated, other than by
    reason of death, unless the conditions in this Section 8 are met.

(c) Failure to comply with the conditions of this Section 8 prior to, or during
    the six months after, any exercise, payment or delivery pursuant to an Award
    shall cause the exercise, payment or delivery to be rescinded.  Primex shall
    notify the Participant in writing of any such rescission within two years
    after such exercise payment or delivery and within  ten days after receiving
    such notice, the Participant shall pay to Primex the amount of any gain
    realized or payment received as a result of the exercise, payment or
    delivery rescinded.  Such payment shall be made either in cash or by
    returning to Primex the number of Shares that the Participant received in
    connection with the rescinded exercise, payment or delivery.

(d) Upon exercise, payment or delivery pursuant to an Award, the Committee may
    require the Participant to certify on a form acceptable to the Committee,
    that he or she is in compliance with the terms and conditions of the Plan.

(e) Nothing herein shall be interpreted to limit the obligations of a
    Participant under his or her employee agreement or any other agreement with
    Primex.

Section 9.  Pooling.
            -------
With respect to the provisions that were amended on November 3, 1999, if (a) the
Board approves a merger or consolidation of Primex which is intended by the
Board to satisfy the accounting rules related to the pooling of interest method
of accounting (the "Pooling Rules") and (b) any provision of this Plan would
violate the Pooling Rules, then such provision shall be null and void ab initio.
In such event, Primex shall offer, in good faith, to the affected Participants,
a replacement provision of equivalent value which does not cause such a

                                       13
<PAGE>

violation, provided, and to the extent, that Primex's outside auditors determine
that any such replacement provision is permissible without violating the Pooling
Rules.

Section 10.  Change in Control
             -----------------

(a) Except as the Board or the Committee may expressly provide otherwise prior
    to a Change in Control of Primex (as defined below) and subject to the
    provisions of Section 6(f)(ix) hereof, in the event of a Change in Control
    of Primex:

        (i)    all Options and Stock Appreciation Rights then outstanding shall
               become immediately and fully exercisable, notwithstanding any
               provision therein for the exercise in installments;

        (ii)   unless a Stock Appreciation Right shall have already been granted
               with respect to an outstanding Option, the Participant holding
               such Option shall be deemed also to hold a Stock Appreciation
               Right related to such Option, exercisable in accordance with and
               subject to the terms and conditions of Section 6(b) for the
               number of Shares exercisable under such Option after giving
               effect to such acceleration, which Stock Appreciation Right may,
               but need not be, evidenced by separate written agreement;

        (iii)  all restrictions and conditions of all Restricted Stock and
               Restricted Stock Units then outstanding shall be deemed satisfied
               as of the date of the Change in Control; and

        (iv)   all Performance Awards shall become vested, deemed earned in full
               and paid to the Participants immediately (or in any event as soon
               as administratively practicable) following the Change in Control,
               cash units in cash and phantom stock units in the Shares
               represented thereby or such other securities, property or cash as
               may be deliverable in respect of Shares as a result of a Change
               in Control, without regard to payment schedules and
               notwithstanding that the applicable performance cycle or
               retention cycle shall not have been completed.

(b) The term "Change in Control" shall mean the occurrence of any one of the
    following events:

        (i)    Primex ceases to be owned by at least 300 shareholders of record
               after December 31, 1996, or ceases, by action of Primex's Board
               of Directors, to be either listed on a national securities
               exchange or authorized for quotation on The Nasdaq Stock Market;

        (ii)   a person, partnership, joint venture, corporation or other
               entity, or two or more of any of the foregoing acting as a
               "person" within the meaning of Section 13(d)(3) of the Securities
               Exchange Act of 1934, as amended (the "Act), other than the
               Corporation, a majority-owned subsidiary of the Corporation, or
               an employee benefit plan (or related trust) of the Corporation,
               or such subsidiary, become(s) the "beneficial owner" (as defined
               in Rule 13(d)(3) under the Act) of 15% or more of the then
               outstanding voting stock of the Corporation;

                                       14
<PAGE>

        (iii)  during any period of two consecutive years after 1996,
               individuals who at the beginning of such period constitute
               Primex's Board of Directors (together with any new Director whose
               election by Primex's Board of Directors or whose nomination for
               election by Primex's shareholders, was approved by a vote of at
               least two-thirds of the Directors then still in office who either
               were Directors at the beginning of such period or whose election
               or nomination for election was previously so approved) cease for
               any reason to constitute a majority of the Directors then in
               office.

        (iv)   all or substantially all of the business or assets of Primex is
               disposed of pursuant to a merger, consolidation or other
               transaction, whether or not Primex is the surviving corporation,
               (unless in either case the shareholders of Primex immediately
               prior to such merger, consolidation, combination or other
               transaction beneficially own, directly or indirectly, more than
               50% of the aggregate voting stock or other ownership interests of
               (x) the entity or entities, if any, that succeed to the business
               of Primex or (y) the combined company);

        (v)    Primex's Board of Directors determines that a tender offer for
               Primex's shares indicates a serious intention by the offeror to
               acquire control of Primex; or

        (vi)   shareholder approval of a liquidation or dissolution of the
               Corporation.

Section 11.  Effective Date of the Plan
             --------------------------

The Plan shall be effective as of the date of its approval by the shareholder of
Primex.

Section 12.  Term of the Plan
             ----------------

No Award shall be granted under the Plan after December 1, 2006, but unless
otherwise expressly provided in the Plan or in an applicable Award Agreement,
any Award theretofore granted may extend beyond such date.

                                       15
<PAGE>

                                  APPENDIX I

                                DESCRIPTION OF
                         RESTRICTED STOCK UNIT AWARDS
                               GRANTED UNDER THE
                       1996 LONG TERM INCENTIVE PLAN OF
                           PRIMEX TECHNOLOGIES, INC.

     The following will apply to restricted stock units granted effective
January 7, 1997, May 6, 1997, June 1, 1997, August 20, 1997 and May 5, 1998:

1.   Definitions

     As used herein:

     "Fair Market Value" means, with respect to a date, on a per share basis,
     the average of the high and the low price of a share of Common Stock
     reported on the consolidated transaction reporting system for NASDAQ issues
     on such date or if Common Stock is not traded on such day, such average
     price on the next preceding date on which it is traded.

     "Restricted Stock Unit" means one phantom share of Primex Common Stock
     granted pursuant to the Plan.

     "Vesting Period" means with respect to a Restricted Stock Unit, a time
     period beginning with the date on which such Restricted Stock Unit is
     granted and ending on January 4, 2002, provided that if the Committee
     determines that Total Return to Shareholders of Primex using the Fair
     Market Value of Primex Common Stock on January 7, 1997, as a base of $100
     is equal to or greater than $160 at the close of business on December 31,
     1999, then the Vesting Period shall end on January 4, 2000.

2.   Vesting and Payment

     (a)  Except as otherwise provided in the Plan, a Participant's interest in
          a Restricted Stock Unit will vest only at the end of the Vesting
          Period for such Restricted Stock Unit.

     (b)  Each vested Restricted Stock Unit will be payable to a Participant by
          delivery of one share of Primex Common Stock following the end of the
          applicable Vesting Period, except as otherwise provided herein.

     (c)  Each outstanding Restricted Stock Unit shall accrue amounts equivalent
          to the cash dividends payable on a share of Primex Common Stock
          ("dividend equivalents").  Such dividend equivalents will be paid to a
          Participant only if

                                       16
<PAGE>

          the Restricted Stock Unit on which such dividend equivalents were
          accrued vests. Dividend equivalents accrue interest at an annual rate
          equal to Primex's before-tax cost of borrowing as determined from time
          to time by Primex's Chief Financial Officer or Treasurer or the
          Committee, compounded quarterly. To the extent a Restricted Stock Unit
          does not vest or is otherwise forfeited, the accrued and unpaid
          dividend equivalents thereon (and any interest on such dividend
          equivalents) shall not vest and shall be forfeited.

     (d)  The total amount of Restricted Stock Units (and dividend equivalents
          and related interest) vested in a Participant at the end of each
          applicable Vesting Period will be paid within 60 days following such
          Vesting Period, except as specifically otherwise provided in the Plan
          or herein.

     (e)  If Restricted Stock Units are to be paid in cash, the Primex Common
          Stock will be valued at the average of the high and low sales prices
          thereof as reported on the NASDAQ National Market System on the fifth
          business day before such cash payment is due (or if Primex Common
          Stock is not traded on such day, the first preceding day on which such
          stock is traded).

     (f)  Restricted Stock Units will carry no voting rights nor, except as
          provided herein, be entitled to receive any dividends or other rights
          enjoyed by shareholders.

3.   Termination of Employment

     (a)  With certain exceptions, as the Committee may determine, a
          Participant's unvested Restricted Stock Units will be forfeited if his
          or her employment terminates before the end of the applicable Vesting
          Period.

4.  Change in Control

     (a)  Upon a Change in Control, an amount equal to the then fair market
          value of shares of Primex Common Stock equal to the number of
          Restricted Stock Units otherwise not vested will be paid either in
          cash or in Primex Common Stock, as the Participant elects.  Such
          distribution will be made immediately (or in any event as soon as
          administratively practicable) following the Change in Control.

5.  Tax Withholding

        (a) Taxes will be withheld from payouts of Restricted Stock Units and
            related cash.

     This description of Restricted Stock Units is qualified in its entirety by
reference to the Plan.

                                       17
<PAGE>

                                 APPENDIX I(a)

                                DESCRIPTION OF
                         RESTRICTED STOCK UNIT AWARDS
                               GRANTED UNDER THE
                       1996 LONG TERM INCENTIVE PLAN OF
                           PRIMEX TECHNOLOGIES, INC.

     The following will apply to restricted stock units granted after January 1,
     1999.

1.   Definitions

     As used herein:

     "Fair Market Value" means, with respect to a date, on a per share basis,
     the average of the high and the low price of a share of Common Stock
     reported on the consolidated transaction reporting system for NASDAQ issues
     on such date or if Common Stock is not traded on such day, such average
     price on the next preceding date on which it is traded.

     "Restricted Stock Unit" means one phantom share of Primex Common Stock
     granted pursuant to the Plan.

     "Vesting Period" means with respect to a Restricted Stock Unit a time
     period beginning with the date on which such Restricted Stock Unit is
     granted and ending on the date on which such Restricted Stock Unit is to
     vest as set forth in the Restricted Stock Unit certificate representing
     such unit grant and as the Compensation & Nominating Committee
     ("Committee") shall determine.

2.   Vesting and Payment

     (a)  Except as otherwise provided in the Plan, a Participant's interest in
          a Restricted Stock Unit will vest only at the end of the Vesting
          Period for such Restricted Stock Unit.

     (b)  Each vested Restricted Stock Unit will be payable to a Participant by
          delivery of one share of Primex Common Stock following the end of the
          Vesting Period, except as otherwise provided herein.

     (c)  Each outstanding Restricted Stock Unit shall accrue amounts equivalent
          to the cash dividends payable on a share of Primex Common Stock
          ("dividend equivalents").  Such dividend equivalents will be paid to a
          Participant only if the Restricted Stock Unit on which such dividend
          equivalents were accrued vests.  Dividend equivalents accrue interest
          at an annual rate equal to Primex's

                                       18
<PAGE>

          before-tax cost of borrowing as determined from time to time by
          Primex's Chief Financial Officer or Treasurer or the Committee,
          compounded quarterly. To the extent a Restricted Stock Unit does not
          vest or is otherwise forfeited, the accrued and unpaid dividend
          equivalents thereon (and any interest on such dividend equivalents)
          shall not vest and shall be forfeited.

     (d)  The total amount of Restricted Stock Units (and dividend equivalents
          and related interest) vested in a Participant at each applicable
          Vesting Period will be paid within 60 days following such Vesting
          Period, except as specifically otherwise provided in the Plan or
          herein.

     (e)  If Restricted Stock Units are to be paid in cash, the Primex Common
          Stock will be valued at the average of the high and low sales prices
          thereof as reported on the NASDAQ National Market System on the fifth
          business day before such cash payment is due (or if Primex Common
          Stock is not traded on such day, the first preceding day on which such
          stock is traded).

     (f)  Restricted Stock Units will carry no voting rights nor, except as
          provided herein, be entitled to receive any dividends or other rights
          enjoyed by shareholders.

3.   Termination of Employment

     (a)  With certain exceptions, as the Committee may determine, a
          Participant's unvested Restricted Stock Units will be forfeited if his
          or her employment terminates before the end of the applicable Vesting
          Period.

4.   Change in Control

     (a)  Upon a Change in Control, an amount equal to the then fair market
          value of shares of Primex Common Stock equal to the number of
          Restricted Stock Units otherwise not vested will be paid either in
          cash or in Primex Common Stock, as the Participant elects.  Such
          distribution will be made immediately (or in any event as soon as
          administratively practicable) following the Change in Control.

5.   Tax Withholding

      (a) Taxes will be withheld from payouts of Restricted Stock Units and
          related cash.

     This description of Restricted Stock Units is qualified in its entirety by
reference to the Plan.

                                       19
<PAGE>

                                  APPENDIX II
                                  -----------

                               STOCK OPTIONS AND
                           STOCK APPRECIATION RIGHTS
                           -------------------------

     The following terms will apply to Stock Options and Stock Appreciation
Rights granted pursuant to this Appendix II:

I.  Definitions
    -----------

A.  "Cause" means the commission of an act of dishonesty, gross incompetency or
intentional or willful misconduct, which act occurs in the course of an
optionee's performance of his duties as an employee.

     B.  "Exercise Price" means the Fair Market Value of a Share on the date of
grant.

     C.  "Fair Market Value" means, with respect to a date, on a per share
basis, the average of the high and the low sale price of a Share reported on the
consolidated transaction reporting system for Nasdaq issues on such date or if
Shares are not traded on such day, such average price on the next preceding date
on which it is traded.

     D.  "Incapacity" means any material physical, mental or other disability
rendering the optionee incapable of substantially performing his or her services
for his employer that is not cured within 180 days of the first occurrence of
such incapacity.

     E.  "Option Term" means ten years from the date of grant.

II.  Option Exercise
     ---------------

     The optionee may purchase from Primex the following aggregate number of
shares covered by the Option on and after each of the following dates during the
term of the Option:

            Date                                Number of Shares
            ----                                ----------------

1st anniversary of the grant date      33-1/3% of original grant of Options
2nd anniversary of the grant date      66-2/3% of original grant of Options
3rd anniversary of the grant date      100% of original grant of Options

     The Option, to the extent vested, shall be exercisable in whole at any time
or in part from time to time during the term of the Option, but not as to less
than 25 shares (or the shares then purchasable under the Option if less than 25
shares) at any one time.

     The exercise price shall either be tendered in cash (or check) or Shares or
a combination of cash (or check) or Shares. Shares surrendered as payment for
the exercise price shall be

                                       20
<PAGE>

valued at Fair Market Value on the date on which the certificates for such
Shares are surrendered to Primex.

      If at any time the optionee's employment with Primex or any Affiliate
shall be terminated (a) voluntarily by the optionee for any reason other than
death or Incapacity or (b) by Primex or any Affiliate for any reason other than
for Cause, the optionee shall have the right to exercise his or her Option to
the extent of the Shares with respect to which the Option could have been
exercised by the optionee as of the date of his or her termination of employment
in accordance with its terms but in no event beyond the earlier of (i) one year
after the date of termination of employment or (ii) the scheduled expiration of
such Option.

      If an optionee's employment with Primex or any of its Affiliates is
terminated due to retirement (at or after attaining age 55 with 10 years of
service with Primex or any Affiliate (including prior service with Olin
Corporation)), the optionee shall have the right to exercise his or her Option
to the extent of the Shares with respect to which the Option could have been
exercised by the optionee as of the date of his or her retirement in accordance
with its terms but in no event beyond the scheduled expiration of such Option.

      If the optionee's employment with the Company shall be terminated for
Cause, his or her Option (whether or not vested) shall terminate and expire
concurrently with such termination of employment and shall not thereafter be
exercisable to any extent.

      If an optionee's employment with Primex or any of its Affiliates is
terminated due to death or Incapacity, the Option shall (a) become fully vested
and (b) be exercisable by the optionee (or in the event of the optionee's death,
by his or her estate or by the person who acquired the right to exercise the
Option by bequest or inheritance) provided that the Option is exercised prior to
the scheduled expiration of such Option.

      If an optionee dies after his or her termination of employment during the
period in which his or her Option remains exercisable, the Option may be
exercised, to the extent the Option could have been exercised by the decedent
immediately prior to his death, by the Optionee's estate or by the person who
acquired the right to exercise the Option by bequest or inheritance at any time
within one year after the date of death, but in no event beyond the scheduled
expiration of such Option.

III.  Transferability of Options
      --------------------------

      All Options granted in accordance with this Appendix II shall be
transferable to the extent permitted in Section 6(f)(v) of the Plan.

                                       21
<PAGE>

IV.  Delegation
     ----------

     The Committee hereby authorizes the Chairman, Chief Financial Officer and
Vice President of Human Resources ("Management") to determine if the Awards
granted pursuant to this Appendix will be incentive Stock Options or
nonqualified Options for all recipients. With respect to any individual who is
not an officer or director of Primex subject to Section 16 of the Securities
Exchange Act of 1934, as amended, the Committee authorizes Management to
determine if a Stock Appreciation Right shall be granted in connection with any
Option or as a separate Award. Any Stock Appreciation Right shall be exercisable
in accordance with the terms included in Section II of this Appendix unless the
Committee (or Management, in the case of an individual who is not subject to
Section 16 of the Securities Exchange Act of 1934, as amended) decides
otherwise.

V.   Shares Available for Awards; Plan Terms
     ---------------------------------------

     In addition to the 700,000 shares which were available for awards under the
Plan prior to the effective date hereof, an additional 1,000,000 shares shall be
available for the grant of stock options pursuant to this Appendix II.

     Except as expressly provided in this Appendix II, all terms of the Plan
shall continue to be in full force and effect.

                                       22<PAGE>

                                                                    Exhibit 10.9

                           PRIMEX TECHNOLOGIES, INC.
                          INCENTIVE COMPENSATION PLAN

                                   ARTICLE I

                             Statement of Purpose
                             --------------------

1.1   The purpose of the Primex Technologies, Inc. Incentive Compensation Plan
      (the "Plan") is to provide a system of incentive compensation which will
      promote the maximization of Economic Value Added ("EVA(R)"/1/) over the
      long term. In order to align management incentives with shareholder
      interests, incentive compensation will reward the creation of value. This
      Plan will tie incentive compensation to EVA(R) and, thereby, reward
      management for creating value and penalize management for destroying
      value.

1.2   EVA(R) is the performance measure of value creation for Primex
      Technologies, Inc. (the "Company"). Managers create value when they employ
      capital in an endeavor that generates a return that exceeds the cost of
      the capital employed. Managers destroy value when they employ capital in
      an endeavor that generates a return that is less than the cost of capital
      employed. By subtracting the cost of capital from the operating profits
      generated by a business group, EVA(R) measures the total value created (or
      destroyed) by management. The Plan will reward management increases in
      EVA(R) and penalize management for decreases in EVA(R).

1.3   The first year of the Plan, which was calendar year 1996, was administered
      by Olin Corporation which owned and operated the businesses that now
      comprise the Company. The Company was spun off from Olin at the end of
      1996. Accordingly, Olin set the Expected Improvement in EVA(R), Leverage
      Factor, and Target EVA(R) for the Company and these continue in full force
      and effect for the Company. The Bank Balances, whether positive or
      negative, for all Olin Participants that joined the Company in connection
      with the spin off were transferred to the Participant's Bonus Bank under
      the Plan.

                                  ARTICLE II

                                  Definitions
                                  -----------

Unless the context provides a different meaning, the following terms shall have
the following meanings:

      "Act" means the Securities Exchange Act of 1934, as amended.

____________________
/1/ EVA(R) is a registered trademark of Stern Stewart & Co.
<PAGE>

                                       2

     "Actual EVA(R)" means, with respect to an EVA(R) Center for a fiscal year,
     the EVA(R) of such center for such year as calculated by the Chief
     Financial Officer.

     "Bank Balance" means, with respect to a Participant, a bookkeeping record
     of the net balance of the amounts credited to and debited against such
     Participant's Bonus Bank following the end of each fiscal year.  For a
     Participant's first year of participation in the Plan, such Participant's
     Bank Balance shall initially be equal to zero.

     "Bonus Bank" means, with respect to a Participant, a bookkeeping record of
     an account to which Declared Bonuses are credited, or debited as the case
     may be, from time to time under the Plan and from which bonus payments to
     such Participants are debited.

     "Bonus Multiple" means, with respect to a Participant for a fiscal year,
     the Participant's Performance Multiple plus the Participant's Target
     Multiple for such year, except in the case of a Participant who has a
     Combined Performance Multiple for such year, the Performance Multiple shall
     be the Combined Performance Multiple for such Participant for such year.

     "Capital" means, with respect to an EVA(R) Center for a fiscal year, the
     investment made (both equity and debt) in such center, as determined by the
     Chief Financial Officer for such year.  Each component of Capital will be
     measured by computing an average balance based on the ending monthly
     balance for the twelve months of a fiscal year.

     "Capital Charge" means, with respect to an EVA(R) Center for a fiscal year,
     the deemed opportunity cost of employing Capital in the business of such
     EVA(R) Center for such year, as determined by the Chief  Financial Officer.
     The Capital Charge is computed as follows:

          Capital Charge = Capital X Cost of Capital

     "Cause" shall mean (i) dishonesty; (ii) theft or other criminal conduct;
     (iii) insubordination; (iv) violation of, or deviation from, any Company or
     facility work rule, or (v) other misconduct deemed by the Company to be of
     a serious nature warranting termination.

     "Change in Control" means the occurrence of any one of the following
     events:

     (i)  the Corporation ceases to be owned by at least 300 shareholders of
          record after December 31, 1996, or ceases, by action of the
          Corporation's Board of Directors, to be either listed on a national
          securities exchange or authorized for quotation on The Nasdaq Stock
          Market;

     (ii) a person, partnership, joint venture, corporation or other entity, or
          two or more of any of the foregoing acting as a "person" within the
          meaning of Section 13(d)(3) of the Securities Exchange Act of 1934, as
          amended (the "Act"), other than the Corporation, a majority-owned
          subsidiary of the Corporation, or an employee
<PAGE>

                                       3

           benefit plan (or related trust) of the Corporation, or such
           subsidiary, become(s) the "beneficial owner" (as defined in Rule
           13(d)(3) under the Act) of 15% or more of the then outstanding voting
           stock of the Corporation;

     (iii) during any period of two consecutive years after 1996, individuals
           who at the beginning of such period constitute the Corporation's
           Board of Directors (together with any new Director whose election by
           the Corporation's Board of Directors or whose nomination for election
           by the Corporation's shareholders, was approved by a vote of at least
           two-thirds of the Directors then still in office who either were
           Directors at the beginning of such period or whose election or
           nomination for election was previously so approved) cease for any
           reason to constitute a majority of the Directors then in office;

     (iv)  all or substantially all of the business or assets of the Corporation
           is disposed of pursuant to a merger, consolidation or other
           transaction whether or not the Corporation is the surviving
           corporation, (unless in either case the shareholders of the
           Corporation immediately prior to such merger, consolidation,
           combination, or other transaction beneficially own, directly or
           indirectly, more than 50% of the aggregate voting stock or other
           ownership interests of (x) the entity or entities, if any, that
           succeed to the business of the Corporation or (y) the combined
           company);

     (v)   the Corporation's Board of Directors determines that a tender offer
           for the Corporation's shares indicates a serious intention by the
           offeror to acquire control of the Corporation; or

     (vi)  shareholder approval of a liquidation or dissolution of the
           Corporation.

     "Chief Executive Officer" means the Chief Executive Officer of the Company
     as designated by the Board of Directors of the Company from time to time.

     "Chief Financial Officer" means the Chief Financial Officer of the Company
     as designated by the Board of Directors of the Company from time to time.

     "Combined Performance Multiple" means, with respect to a Participant who is
     assigned to a Participating Group which has more than on EVA(R) Center, in
     any fiscal year, the sum of the Performance Multiples for such centers for
     such year as weighted for such Participating Group.

     "Committee" means the Compensation and Nominating Committee of the Board of
     Directors of the Company or such other committee as such Board may
     designate from time to time.

     "Company" or "Corporation" means Primex Technologies, Inc., a Virginia
     corporation, and its successors and assigns, including any corporation with
     which the Company is merged or consolidated.
<PAGE>

                                       4

     "Corporate Officer" means a corporate officer of the Company, elected by
     the Board of Directors of the Company, who is not an assistant officer.

     "Corporate EVA(R) Center" means the EVA(R) Center consisting of the entire
     Company.

     "Cost of Capital" means for a fiscal year the weighted average of the cost
     of debt and the cost of equity for such year, as determined by the Chief
     Financial Officer.  The Cost of Capital will be reviewed at least annually
     and revised if it has changed significantly.  Calculations will be carried
     to one decimal point.

     "Declared Bonus" means, with respect to a Participant for a fiscal year,
     the bonus earned by such Participant for such year and is equal to the
     Participant's Initial Declared Bonus for such year except if the
     Participant's Participating Group has a Value Driver Factor, such
     Participant's Declared Bonus shall be equal to the sum of (i) the EVA(R)-
     weighted portion of the Initial Declared Bonus for such year plus (ii) the
     product of the non-EVA(R) weighted portion of the Initial Declared Bonus
     for such year multiplied by the Value Driver Factor for such year provided
     that in all cases prior to a Change in Control the Company in its sole
     discretion may reduce a positive Declared Bonus of any and all Participants
     to any amount (but no less than zero) prior to the crediting of such
     Declared Bonus to the Participant's Bonus Bank.

     "EVA(R)" means, with respect to an EVA(R) Center for a fiscal year, NOPAT
     of such EVA(R) Center for such year minus Capital Charge of such EVA(R)
     Center for such year, all as calculated by the Chief Financial Officer.
     EVA(R) may be positive or negative.

     "EVA(R) Center" means those centers or business groups, including the
     Company, for which EVA(R) is separately calculated, such centers to be
     determined annually by the Company for a fiscal year.

     "Expected Improvement" means the constant EVA(R) improvement that is added
     to shift the target up each year.  This is determined by the expected
     growth in EVA(R) per year with respect to an EVA(R) Center.  In the event
     the Long-Term Target is achieved in any one year, no Expected Improvement
     is added to next year's target EVA(R).  With respect to the Corporate
     EVA(R) Center, the Expected Improvement shall be $900,000/year.

     "Initial Declared Bonus" means, with respect to a fiscal year for a
     Participant, the product of the Participant's Target Incentive for such
     year multiplied by such Participant's Bonus Multiple for such year.

     "Leverage Factor" means the amount of overscore above EVA(R) target that
     yields a 200% payout or underscore that yields a zero % payout.

     "Long-Term Target" means summation of Target EVA(R) in the initial year,
     plus Expected Improvement multiplied by 7.
<PAGE>

                                       5

     "NOPAT" means, with respect to an EVA(R) Center for a fiscal year, the net
     operating profit after taxes for such fiscal year, as determined by the
     Chief Financial Officer.

     "Participating Group" means for a fiscal year a business division or
     subunit of a business division which are uniquely identified for the
     purpose of bonus awards under this Plan and are so designated by the
     Company from time to time as a Participating Group.

     "Performance Multiple" means, with respect to an EVA(R) Center for a fiscal
     year, the difference between the Actual EVA(R) and the Target EVA(R)
     divided by the Leverage Factor.  In the case of a Participant who is
     assigned to more than one EVA(R) Center, the Participant will have a
     Performance Multiple for each EVA(R) Center.

     "Plan" means this Incentive Compensation Plan, as amended from time to
     time.

     "Target EVA(R)" means, with respect to an EVA(R) Center for the initial
     year, of such center the level of EVA(R) as determined by the Company.
     With respect to the Corporate EVA(R) Center for 1996, the Target EVA(R)
     shall be ($6,400,000). After the initial year of an EVA(R) Center, the
     Target EVA(R) for such center for each succeeding fiscal year is revised
     according to the following formula:

     Target EVA(R) = ((Prior Fiscal Year's Actual EVA(R) + Prior Fiscal Year's
     Target EVA(R)) divided by 2) + Expected Improvement provided such Target
     EVA(R) shall be adjusted to reflect any change in the Cost of Capital for
     such succeeding fiscal year as provided in the EVA(R) Business Management
     System prepared by Stern Stewart & Co. and provided further that if Long-
     Term Target is achieved, no Expected Improvement will be added.

     "Target Incentive" means, with respect to a Participant for a fiscal year,
     the Target Incentive for such Participant for such fiscal year as
     determined by the Committee in the case of Participants who are Corporate
     Officers of the Company at the time of determination and in all other cases
     by the Chief Executive Officer or his designee.

     "Target Multiple" means 1.0 for each Participant except in the first four
     years during which a Participant participates in the Plan, the Target
     Multiple shall be 1.5.

     "Value Driver Factor" is based on an assessment of individual and/or group
     performance as determined annually by the Company.

                                  ARTICLE III

                   Determination and Distribution of Bonuses
                   -----------------------------------------

3.1  Determinations.  For each fiscal year of the Company beginning with the
     --------------
     1997 fiscal year, the Company shall determine with respect to such fiscal
     year (1) the persons who will be Participants, (2) the Participating Group
     for each such Participant, (3) the Target Incentive for each Participant,
     (4) the minimum and maximum value of the
<PAGE>

                                       6

     Value Driver Factor, if any, for each Participant, (5) the EVA(R) Center or
     EVA(R) Centers for each Participating Group, (6) if there is more than one
     EVA(R) Center for a Participating Group, the weight each EVA(R) Center will
     carry in determining the Bonus Multiple of such Participating Group and (7)
     Cost of Capital for each EVA(R) Center. As soon as practicable following
     the close of the fiscal year, the Company shall determine the following
     with respect to such fiscal year for each Participant: (1) Actual EVA(R)
     and Performance Multiple for each EVA(R) Center, (2) the Performance
     Multiple or Combined Performance Multiple, as the case may be, for each
     Participating Group, (3) the Bonus Multiple, (4) the Value Driver Factor,
     (5) the Initial Declared Bonus, (6) the Declared Bonus and (7) the Capital
     Charge for each EVA(R) Center. The Committee on behalf of the Company shall
     determine the Initial Declared Bonus, Value Driver Factor (if any) and the
     Declared Bonus for Participants who are Corporate Officers at the time of
     determination. Capital, Cost of Capital, Capital Charge, Expected
     Improvement in EVA(R), Leverage Factor and Target EVA(R) may be adjusted
     from time to time for a fiscal year to reflect extraordinary or
     nonrecurring charges or financial developments.

3.2  Distribution.  As soon as practicable, following the close of each fiscal
     ------------
     year of the Company, but no later than March 15 following such close, the
     Company shall with respect to each Participant:

     (1)  Add the Declared Bonus for such fiscal year (including any negative
          bonuses) to the Bonus Bank.

     (2)  Pay out a prescribed portion of any positive Bank Balance in
          accordance with the distribution ratio shown below, and

     (3)  Carry the remaining Bank Balance (positive or negative) forward to the
          next fiscal year.

     The prescribed distribution ratios for the Bonus Bank for a Participant are

     First year of Plan participation    67%
     Second year of Plan participation   50%
     Third year of Plan participation    40%
     Fourth year of Plan participation   33%

     If the first period of participation for a Participant is less than six
     months, then the first year distribution ratio (i.e. 67%) applies to this
     period and the full subsequent year of participation.  Thereafter, the
     distribution ratios are as above.

     Notwithstanding the foregoing, the Company may, as it determines in its
     sole discretion, reduce the distribution ratio for any and all Participants
     at any time prior to payment of the distribution from the Bonus Bank for a
     fiscal year, provided the Committee shall make such determination in the
     case of any Corporate Officer.

3.3  Negative Bonus Bank.  If, as a result of negative EVA(R), a Bonus Bank has
     -------------------
     a deficit, no Participant shall be required, at any time, to reimburse his
     or her Bonus Bank.
<PAGE>

                                       7

3.4  Lump Sum.  All distributions from the Plan shall be made in a cash lump sum
     --------
     unless payment is deferred in a timely manner by the Participant with the
     consent of the Company under the Company's bonus deferral policy as in
     effect from time to time.

3.5  Interest.  No interest shall be paid on or accrue to any Bank Balance.
     --------

                                  ARTICLE IV

                   Participation, Transfers and Terminations
                   -----------------------------------------

4.1  Participant Matters.  Unless otherwise expressly reserved to the Committee
     -------------------
     or the Chief Financial Officer and except in cases affecting the Chief
     Executive Officer, the Chief Executive Officer or his designee on behalf of
     the Company shall determine all Plan matters with respect to all
     Participants.

4.2  Transfers.  A Participant who transfers his or her employment from one
     ---------
     Participating Group of the Company to another Participating Group shall
     retain his or her Bonus Bank and will be eligible to receive future Plan
     bonuses in accordance with the provisions of the Plan.  During the year of
     transfer, the Initial Declared Bonus and Declared Bonus for such
     Participant shall be pro rated on time spent in each Participating Group.

4.3  Retirement, Disability or Death.  If during a fiscal year a Participant
     -------------------------------
     terminates employment with the Company by virtue of electing retirement
     (must be minimum of fifty-five years of age with at least ten years
     service), receiving disability payments under the Company's long-term
     disability benefits program or death, such Participant, surviving
     beneficiary or estate shall receive the positive Bank Balance. The
     Participant, surviving beneficiary or estate, will receive his or her
     balance as soon as practical after qualifying for receipt of benefit
     payments under the Company's long-term disability benefits program or
     retirement. Payments of such balance made under this Section 4.3 shall not
     be included in any PRIME Plan or Restoration Plan calculation.

4.4  Involuntary Termination Without Cause.  A Participant whose employment is
     -------------------------------------
     terminated by the Company or any subsidiary without Cause shall be paid the
     positive Bank Balance, if any, within 30 days from the date of termination.
     Any payments of such balance made under this Section 4.4 shall not be
     included in any PRIME Plan or Restoration Plan calculation.

4.5  Voluntary Termination.  In the event that a Participant voluntarily
     ---------------------
     terminates employment with the Company or any of its subsidiaries, the
     right of Participant to his or her Bonus Bank and any Bank Balance shall be
     forfeited unless a different determination is made by the Company.  Any
     payments of such balance made under this Section 4.5 shall not be included
     in any PRIME Plan or Restoration Plan calculation.
<PAGE>

                                       8

4.6  Involuntary Termination for Cause.  In the event of termination of
     ---------------------------------
     employment for Cause, the right of Participant to his or her Bonus Bank and
     any Bank Balance shall be forfeited unless a different determination is
     made by the Company in its sole discretion. Any payments of such balance
     made under this Section 4.6 shall not be included in any PRIME Plan or
     Restoration Plan calculation.

4.7  Breach of Agreement.  Notwithstanding any other provision of the Plan or
     -------------------
     any other agreement, in the event that a Participant shall breach any non-
     competition agreement or provision relating to the Company or any
     subsidiary of the Company or breach any agreement with respect to the post-
     employment conduct of such Participant, including those contained in any
     benefit or incentive plan or award, the Bonus Bank held by such
     Participating Participant shall be forfeited.

4.8  Change in Control.  Upon a Change in Control, an additional bonus shall be
     -----------------
     added to each Participant's Bonus Bank for the fiscal year in which the
     Change in Control occurs.  Such additional bonus shall be the Participant's
     (1) preceding fiscal year's Declared Bonus or (2) current fiscal year's
     Target Incentive, whichever is greater, multiplied by a fraction, the
     numerator of which is the number of months (rounded to the nearest whole
     month) that the Participant was employed by the Company and the denominator
     of which is 12.  No additional bonus shall be added to any Participant's
     Bonus Bank if his or her Declared Bonus for the preceding fiscal year was
     negative.

     Immediately following the allocation in the preceding paragraph, the Plan
     shall terminate and any positive Bank Balances shall be paid to
     Participants immediately (or in any event as soon as administratively
     practicable) following the Change in Control.

4.9  No Guarantee.  Participation in the Plan provides no guarantee that
     ------------
     payments under the Plan will be paid. Selection as a Participant is no
     guarantee that payments under the Plan will be paid or that selection as a
     Participant will be made for the subsequent fiscal year.

                                   ARTICLE V

                              General Provisions
                              ------------------

5.1  Withholding of Taxes.  The Company shall have the right to withhold the
     --------------------
     amount of taxes, which in the determination of the Company, are required to
     be withheld under law with respect to any amount due or paid under the
     Plan.

5.2  Expenses.  All expenses and costs in connection with the adoption and
     --------
     administration of the Plan shall be borne by the Company out of its general
     funds.

5.3  Claims for Benefits.  Participants whose employment with the Company or any
     -------------------
     subsidiary is  terminated for any reason will be deemed to have made a
     claim for benefits under the Plan and no written claim will be required.
     Claims for benefits will be decided by the Chief Executive Officer or, in
     the case or a claim pertaining to the
<PAGE>

                                       9

     Chief Executive Officer, by the Committee (collectively referred to as the
     "Adjudicator"). If the Adjudicator believes that a terminated Participant
     is not entitled to benefits under the terms and conditions of the Plan, it
     shall notify the Participant in writing of the denial of benefits within 90
     days of the Participant's termination of service. In the event that a claim
     is wholly or partially denied, the Participant or his representative will
     receive a written explanation of the reason for denial. The Participant or
     his representative may request a review of the denied claim within 60 days
     of receipt of the denial and, in connection therewith, may review pertinent
     documents and submit comments in writing. Upon receipt of an appeal, the
     Adjudicator shall decide the appeal within 60 days of receipt. The decision
     on appeal shall be in writing, shall include specific reasons for the
     decision and shall prefer to pertinent provisions of the Plan on which the
     decision is based. In reaching its decision, the Adjudicator shall have
     complete discretionary authority to determine all questions arising in the
     interpretation and administration of the Plan and to construe the terms of
     the Plan, including any doubtful or disputed terms and the eligibility of a
     Participant for benefits.

5.4  Action Taken In Good Faith.  The Company may employ attorneys, consultants,
     --------------------------
     accountants or other persons and the Company's directors and officers shall
     be entitled to rely upon the advice, opinions or valuations of any such
     persons.  All actions taken and all interpretations and determinations made
     by the Committee or Chief Executive Officer in good faith shall be final
     and binding upon all employees, the Company and all other interested
     parties.  No member of the Committee, nor any officer, director, employee
     or representative of the Company, or any of its affiliates acting on behalf
     of or in conjunction with the Committee, shall be personally liable for any
     action, determination, or interpretation, whether of commission or
     omission, taken or made with respect to the Plan.

5.5  Rights Personal to Employee.  Subject to Section 4.3 above, any rights
     ---------------------------
     provided to an employee under the Plan shall be personal to such employee,
     shall not be transferable (except by will or pursuant to the laws of
     descent or distribution), and shall be exercisable during his lifetime,
     only by such employee.

5.6  Distribution.  Upon termination of the Plan or suspension of the Plan for a
     ------------
     period of more than 90 days, the positive Bank Balance of each Participant
     shall be distributed as soon as practicable, but in no event later than 90
     days from such event. The Committee, in its sole discretion, may accelerate
     distribution of the balance of any Bonus Bank, in whole or in part, at any
     time without penalty.

5.7  Non-Allocation of Award.  In the event of a suspension or termination of
     -----------------------
     the Plan during any fiscal year, except where expressly provided for, as
     provided herein at Section 10.1, the Declared Bonus for such year shall be
     deemed forfeited and no portion thereof shall be allocated to Participants.
     In the event of a suspension, any such forfeiture shall not affect the
     calculation of EVA(R) in any subsequent year.
<PAGE>

                                       10

                                  ARTICLE VI

                                  Limitations
                                  -----------

6.1  No Continued Employment.  Nothing contained herein shall provide any
     -----------------------
     employee with any right to continued employment or in any way abridge the
     rights of the Company and its subsidiaries to determine the terms and
     conditions of employment and whether to terminate employment of any
     employee. Neither the establishment of the Plan or the grant of an award or
     bonus hereunder shall be deemed to constitute an express or implied
     contract of employment for any period of time or in any way abridge the
     rights of the Company or any of its subsidiaries to determine the terms and
     conditions of employment or to terminate the employment of any employee
     with or without cause at any time.

6.2  No Vested Rights.  Except as otherwise expressly provided herein, no
     ----------------
     employee or other personal shall have any claim of right (legal, equitable,
     or otherwise) to any award, allocation, or distribution or any right,
     title, or vested interest in any amounts in his Bonus Bank and no officer
     or employee of the Company or any subsidiary or any other personnel shall
     have any authority to make representations or agreements to the contrary.
     No interest conferred herein to a Participant shall be assignable or
     subject to any lien or pledge or any claim by a Participant's creditors.
     The right of the Participant to receive a distribution thereunder shall be
     an unsecured claim against the general assets of the Company and the
     Participant shall have no rights in or against any specific assets of the
     Company as the result of participation hereunder.

6.3  Not Part of Other Benefits.  The benefits provided in this Plan shall not
     --------------------------
     be deemed a part of any other benefit provided by the Company or any of its
     subsidiaries to its employees. Neither the Company nor any of its
     subsidiaries assumes any obligation to Participants except as specified
     herein.

6.4  Other Plans.  Nothing contained herein shall limit the Company and its
     -----------
     subsidiaries' power or the Committee's power to grant bonuses to employees
     of the Company or any of its subsidiaries, whether or not Participants in
     this Plan.

6.5  Unfunded Plan.  This Plan is unfunded and is maintained by the Company in
     -------------
     part to provide deferred compensation to a select group of management and
     highly compensated employees. Nothing herein shall create or be construed
     to create a trust or separate fund of any kind, or a fiduciary relationship
     between the Company (or any of its subsidiaries) and any Participant.

                                  ARTICLE VII

                                   Authority
                                   ---------

7.1  Full power and authority to interpret and administer this Plan shall be
     vested in the Committee, which shall have the authority to make rules and
     regulations for the administration of the Plan. The Committee may from time
     to time make such decisions and adopt such rules and regulations for
     implementing the Plan as it deems
<PAGE>

                                       11

     appropriate for any Participant under the Plan. Any decision taken by the
     Committee arising out of or in connection with the construction,
     administration, interpretation and effect of the Plan shall be final,
     conclusive and binding upon all Participants and any person claiming under
     or through them. The Committee may delegate its power and authority with
     respect to the Plan to the Chief Executive Officer from time to time as it
     determines. All powers and responsibilities of the Committee provided in
     this Plan may also be exercised by the Board of the Company at any time.

                                  ARTICLE VIII

                                     Notice
                                     ------

8.1  Any notice to be given pursuant to the provisions of the Plan shall be in
     writing and directed to the appropriate recipient thereof at his business
     address or office location.

                                   ARTICLE IX

                                 Effective Date
                                 --------------

9.1  This Plan is deemed to be effective as of January 1, 1996.

                                   ARTICLE X

                                  Amendments
                                  ----------

10.1 This Plan may be amended, suspended or terminated in whole or in part at
     any time from time to time at the sole discretion of the Committee;
     provided however, that no such change in the Plan shall be effective to
     eliminate or diminish the distribution of any award that has been allocated
     to the Bonus Bank of a Participant prior to the date of such amendment,
     suspension or termination. Notice of any such amendment, suspension or
     termination shall be given promptly to each Participant.

                                  ARTICLE XI

                                Applicable Law
                                --------------

11.1 This Plan shall be construed in accordance with the provisions of the laws
     of the State of Florida.

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