Separation Agreement

SEPARATION AGREEMENT



AND



GENERAL RELEASE OF CLAIMS



This Separation Agreement and General Release of Claims ("Agreement" or " General Release") is made and entered into by and between Eric S. Rangen, on behalf of his agents, assigns, heirs, executors, administrators, attorneys and representatives ("Mr. Rangen"), and Alliant Techsystems Inc., a Delaware corporation, any related corporations or affiliates, subsidiaries, predecessors, successors and assigns, present or former officers, directors, stockholders, board members, agents, employees, and attorneys, whether in their individual or official capacities, delegates, benefit plans and plan administrators, and insurers ("Company" or "ATK").



WHEREAS, Mr. Rangen92s employment shall end as provided in this General Release. In consideration of Mr. Rangen signing and complying with this General Release, ATK agrees to provide Mr. Rangen with certain payments and other valuable consideration described below. Further, ATK and Mr. Rangen desire to resolve and settle any and all potential disputes or claims related to his employment or termination of employment.



WHEREAS, ATK has expended significant time and money on promotion, advertising, and the development of goodwill and a sound business reputation through which it has developed a list of customers and spent time and resources to learn the customers92 needs for ATK92s services and products. This information is valuable, special and unique assets of ATK92s business, which Mr. Rangen acknowledges constitutes confidential information.



WHEREAS, ATK has expended significant time and money on technology, research, and development through which it has developed products, processes, technologies and services that are valuable, special and unique assets of ATK92s business, which Mr. Rangen acknowledges constitute confidential information.



WHEREAS, the disclosure to or use by third parties of any of ATK92s confidential or proprietary information, trade secrets, or Mr. Rangen92s unauthorized use of such information would seriously harm ATK92s business and cause monetary loss that would be difficult, if not impossible, to measure.



THEREFORE, ATK and Mr. Rangen (the "Parties") mutually agree to the following terms and conditions:



1. Termination of Employment . The Parties agree that Mr. Rangen92s employment with ATK is terminated effective March 31, 2006.



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(a) Final Paycheck. ATK will pay Mr. Rangen for all salary earned through the effective date of the termination of his employment with ATK. ATK will also pay for any accrued, but unused vacation/PTO of Mr. Rangen. Mr. Rangen92s continuing rights, if any, under all other ATK employee benefits plans will be governed by those plans.



(b) Executive Incentive Plan. Mr. Rangen will be eligible to receive an Executive Incentive Plan (EIP) payment for Fiscal-Year 2006. This payment will be based solely on the actual corporate financial performance achieved, as established in the beginning of such fiscal year, with no discretionary adjustment made to it. This amount will be paid in a single lump sum payment in cash (or deferred if previously elected) at the time all other EIP participants receive payment.



(c) Deferred Compensation . Any compensation Mr. Rangen deferred under the Alliant Techsystems Inc. Nonqualified Deferred Compensation Plan (or predecessor plans) shall be paid in accordance with his pre-selected distribution options and the terms of that plan.



2. Severance Benefits . In exchange for Mr. Rangen92s promises contained herein, ATK will provide Mr. Rangen with the severance benefits contained in the Executive Severance Plan and with any additional benefits identified in this Paragraph 2 (together referred to as "Severance Benefits"):



(a) Severance Pay. ATK will pay Mr. Rangen a single lump-sum severance payment in the amount of $550,400, which is equal to twelve months of his base salary and one year annual target cash bonus. This severance payment will be subject to all applicable withholdings and will be taxable as payroll wages. No 401(k) deductions will be taken from the payment nor is it pensionable earnings (for example, it is not "Earnings" or "Recognized Compensation") for purposes of any ATK qualified or non-qualified employee benefits plans.



(b) Restricted Stock. Mr. Rangen does not have any unvested and outstanding shares of restricted stock.



(c) Performance Share Incentive Stock. In accordance with Mr. Rangen92s Performance Award Agreement, dated August 2, 2005, Mr. Rangen understands that he will receive a prorated number of the performance shares that were granted to him, based on the amount of active service time during the applicable fiscal year 2005-2007 three-year period (two-thirds). Mr. Rangen further understands that ATK will make payment of these shares to Mr. Rangen following the completion of the performance period. ATK currently expects that payment to be in May 2007, and that the amount of the payment depends on whether and to what extent ATK meets the objectives set when that performance share grant was made.



(d) Stock Options. Any unvested (not exercisable) stock options will vest and become exercisable as of Mr. Rangen92s termination date. In accordance with Mr. Rangen92s Non-qualified Stock Option Agreements, all stock options that are exercisable on Mr. Rangen92s termination date remain exercisable until the earlier of (i) the option92s expiration date under the



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applicable Non-qualified Stock Option Agreement, or (ii) three years from Mr. Rangen92s termination date.



(e) Additional Lump Sum. ATK will pay Mr. Rangen a lump-sum payment in the amount of $15,000.00, less ordinary tax and other applicable withholdings, to offset the cost of continuing health care coverage.



(f) Financial Planning. ATK will pay Mr. Rangen $24,000, less ordinary tax and other applicable withholdings, for continued financial planning services in lieu of company provided financial planning services.



(g) Outplacement Services. Mr. Rangen will be entitled to participate in executive level outplacement services through Lee Hecht Harrison. These services are provided for a six month period which may start at Mr. Rangen92s election, but will continue no later than December 31, 2006, whether or not the full six months have been used.



(h) Independent Consideration. Mr. Rangen understands and agrees that he is only eligible for Severance Benefits in the event he signs this General Release, does not rescind/revoke this General Release, and submits a letter confirming no rescission/revocation. Mr. Rangen acknowledges that he is not otherwise entitled to receive such additional and valuable consideration. Except as otherwise provided in Paragraph 8 and 10, by Mr. Rangen92s signature on this General Release, he waives all rights he may have to any other benefits or cash payment, unless such waiver is prohibited by law. Further, Mr. Rangen agrees that these Severance Benefits are adequate consideration for the promises herein.



(i) Delivery of Severance Pay and Cash Benefits. ATK shall deliver to Mr. Rangen the cash amounts under Paragraphs 2(a), (e), and (f) promptly after October 1, 2006, provided that the applicable rescission period has elapsed. This delivery date may be delayed further if necessary to comply with Section 409A of the U.S. Internal Revenue Code of 1986, as amended from time to time but in any event the delivery date shall not be extended beyond 30 days of the earliest date permitted by Section 409A.



3. Post Employment Restrictions.



(a) Confidentiality and Non-Disparagement . Mr. Rangen acknowledges that in the course of his employment with ATK, he has had access to confidential information and trade secrets. Mr. Rangen agrees to maintain the confidentiality of ATK92s confidential information and trade secrets. He will not disclose or otherwise make available to any person, company, or other party confidential information or trade secrets. Further, Mr. Rangen agrees not to make any disparaging or defamatory comments about any ATK employee, director, o ...