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Executive Severance Plan As Amended Effective April1, 2004

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Sectors: Aerospace and Defense
Effective Date: April 01, 2004
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Executive Severance Plan
as amended
effective April 1, 2004



Summary Plan Description (SPD) for Executives at ATK and its associated companies. April 2004



Alliant Techsystems Inc. (ATK) provides a severance benefit to eligible Executives who are terminated for convenience or due to lay off or reduction in workforce. Note that severance is not available in other types of terminations including voluntary resignation or termination for cause nor is severance available when a participant is reassigned to another position or offered other employment by a successor or acquiring company.



This document is the summary plan description (SPD) and contains all the terms of the ATK Executive Severance (Plan) for eligible employees adopted by the company effective April 1, 2004. A Change of Control does not trigger any benefits under this Plan.



A severance payment is contingent upon a signed (and unrescinded) general release of all claims against ATK in a form acceptable to ATK. Upon official notification of termination, an individual will have a period of time to consider whether to accept and sign the general release. An example of the general release is attached to this SPD. Its form may vary from state to state and it may be changed from time to time.





Questions



Contact Employee Solutions if you have questions about this Plan. You may obtain a printed copy of this SPD from Employee Solutions, or you may print a copy from ATKNET (click on Microsoft Word doc).





Reservation of rights



ATK reserves the right to change, amend or terminate this Plan or to change the severance benefit available under the Plan at any time in ATK92s sole discretion.



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Plan highlights



Plan feature How it works

Plan participation You automatically become a participant in the Plan when you become an Executive employee of ATK or one of its associated companies. If at any time, you are demoted or otherwise removed from an Executive position, then you are disqualified from participation in this Plan. Persons in contract or consultant positions are not eligible for benefits under this Plan.

Plan cost ATK will pay the entire cost of severance benefits paid under this Plan out of its general funds.

Benefit eligibility You may be offered a severance benefit if you are terminated for convenience or due to layoff or reduction in workforce as determined by ATK and all other conditions of the Plan are met.

Form of Benefit If eligible, you will be provided at least two weeks92 notice of your termination date, or pay in lieu of notice, a severance benefit that includes a lump-sum severance payment, plus an additional lump-sum payment to offset costs to continue health care , and outplacement services.

Benefit amount For a Tier 1 Executive the amount of severance is equal to 12 months of base salary.

For a Tier 2 Executive the amount of severance is based on two weeks of base salary for each full year of continuous service with ATK measured from the most recent hire date and calculated as of the effective date of termination. It includes a minimum severance payment of 26 weeks and a maximum severance payment of 39 weeks.

Note that the Plan has a non-duplication of severance benefit provision.

General Release You are required to sign a general release of all employment-related claims prior to receiving a severance payment. This agreement includes post-employment restrictions relating to competition and non-solicitation of workforce.

When benefit is payable Severance is payable after the termination of your employment and after the rescission period set in your signed general release, if any, has elapsed.




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Table of contents



Cover note

Reservation of rights

Plan highlights

About this SPD

Introduction

Plan eligibility
Benefit eligibility
Coordination with Employment Agreements and other separation benefits

Form of severance benefit

Notice
Severance Payment
Other Severance Benefits


General provisions

Year of Service
General Release
Post-Employment Restrictions
Benefit Prorate (RPT)
Non-duplication
Medical / disability leave of absence
Change of Control
Amendment or Termination

Administration (ERISA)

General Release (example)




About this SPD



95 This document is the Summary Plan Description (SPD) of the Executive Severance Plan (Plan). It explains who is eligible, what the benefit is, and how and when the benefit may be distributed.



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



95 This SPD is not meant to cover every detail of the Plan. Complete details are in the plan document that, in all cases, governs the interpretation, operation, and administration of the Plan. In the event of a conflict between this SPD and the plan document or any terms or conditions, the text of the plan document will prevail.



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Introduction



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



For a Tier 1 Executive the amount of severance is equal to 12 months of base salary. For a Tier 2 Executive the amount of severance is based on two weeks of base pay for each full year of continuous service with ATK measured from the most recent hire date and calculated as of the effective date of termination . It may include service with a predecessor company. (See page 9.) It includes a minimum severance payment of 26 weeks and a maximum severance payment of 39 weeks.





Plan eligibility



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



95 You are in a Tier 1 Executive position if you are an officer elected by the ATK Board of Directors or you are a grade level 22A, 23 or 24.



95 You are in a Tier 2 Executive position if you are grade level 22B or 22C and are eligible to participate in the ATK Executive Incentive Program.



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



95 You voluntarily terminate your employment. (As used here, this excludes a formal Request for Layoff Consideration, which may be periodically offered);



95 You are terminated for cause by ATK;



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



95 ATK no longer offers the Plan.



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



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You are not eligible to participate in the Plan if:



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



95 You are not an Executive of ATK or an associated company.



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





Benefit eligibility



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



95 You are terminated for convenience or due to a layoff or RIF, or ATK otherwise determines, in its sole discretion, that you are entitled to severance benefits;



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



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



For purposes of this plan, termination for convenience shall mean ATK92s termination of your employment at any time without cause. If ATK so terminates your employment, then you may be eligible for severance.



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



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



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



95 You intentionally damage or refuse to return ATK or customer property;



95 You engage in conduct or behavior that would otherwise lead to termination of your employment such as disclosing confidential information, disparaging the company, mistreating or harassing other employees, or violating other workplace rules or ATK92s Code of Conduct; or



95 You are a participant in the Alliant Techsystems Inc. Income Security Plan and your termination is a Qualifying Termination as defined under that plan. Under no circumstances will you receive benefits under both the Income Security Plan and this Plan as a result of the termination of your employment.



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



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



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



95 Your termination is for cause;



95 A Change of Control occurs;



95 You are transferred from one ATK location to a different ATK location;



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



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



95 You are not eligible on the effective date of your termination from employment with ATK.


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