ALLIANT TECHSYSTEMS INC
EXHIBIT 10.2.1
<DOCUMENT>
<TYPE>EX-10.2-1
<SEQUENCE>3
<FILENAME>a2112669zex-10_21.htm
<DESCRIPTION>EXHIBIT 10.2.1
<TEXT>
<HTML>
<HEAD>

</HEAD>
<BODY BGCOLOR="#FFFFFF" LINK=BLUE  VLINK=PURPLE>
<BR>
<FONT SIZE=3 ><A HREF="#03STP1623_2">QuickLinks</A></FONT>
<font size=3> -- Click here to rapidly navigate through this document</font>

<!-- TOC_END -->
<P ALIGN="RIGHT"><FONT SIZE=2><A
NAME="kb1624_exhibit_10.2.1"> </A>
<A NAME="toc_kb1624_1"> </A>
<BR></FONT><FONT SIZE=2><B>Exhibit 10.2.1    <BR>    </B></FONT></P>

<BR>
<BR>
<BR>
<BR>
<BR>
<BR>
<P ALIGN="CENTER"><FONT SIZE=3><B>ENVIRONMENTAL AGREEMENT  </B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=3><B>BETWEEN  </B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=3><B>ALLIANT TECHSYSTEMS INC.  </B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=3><B>AND  </B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=3><B>HERCULES INCORPORATED  </B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=3><B>DATED AS OF OCTOBER 28, 1994  </B></FONT></P>

<BR>
<BR>
<BR>
<BR>
<BR>
<BR>
<HR NOSHADE>
<!-- ZEQ.=1,SEQ=1,EFW="2112669",CP="ALLIANT TECHSYSTEMS INC.",DN="2",CHK=372691,FOLIO='blank',FILE='DISK014:[03STP4.03STP1624]KB1624A.;6',USER='CKASTNE',CD='14-JUN-2003;14:04' -->
<!-- THIS IS THE END OF A COMPOSITION COMPONENT -->
<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="page_kc1624_1_1"> </A> </FONT></P>

<!-- TOC_END -->
<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="kc1624_table_of_contents"> </A>
<A NAME="toc_kc1624_1"> </A>
<BR></FONT><FONT SIZE=2><B>TABLE OF CONTENTS    <BR>    </B></FONT></P>

<!-- User-specified TAGGED TABLE -->
<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH WIDTH="4%" ALIGN="LEFT"><FONT SIZE=2>&nbsp;</FONT><BR></TH>
<TH WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TH>
<TH WIDTH="3%" ALIGN="LEFT"><FONT SIZE=2>&nbsp;</FONT><BR></TH>
<TH WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TH>
<TH WIDTH="6%" ALIGN="LEFT"><FONT SIZE=2>&nbsp;</FONT><BR></TH>
<TH WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TH>
<TH WIDTH="72%" ALIGN="LEFT"><FONT SIZE=2>&nbsp;</FONT><BR></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="5%" ALIGN="CENTER"><FONT SIZE=1><B>Page</B></FONT><HR NOSHADE></TH>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD COLSPAN=7><FONT SIZE=2>ARTICLE ONE</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT"><FONT SIZE=2>1</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="4%"><FONT SIZE=2><BR>
1.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=5><FONT SIZE=2><BR>
Certain Definitions.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT"><FONT SIZE=2><BR>
1</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD COLSPAN=7><FONT SIZE=2><BR>
ARTICLE TWO</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT"><FONT SIZE=2><BR>
6</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="4%"><FONT SIZE=2><BR>
2.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=5><FONT SIZE=2><BR>
Pre-Closing Environmental Assessments and Inspections.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT"><FONT SIZE=2><BR>
6</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="4%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2><BR>
2.1</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="72%"><FONT SIZE=2><BR>
Performance of Phase I of the BEA.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT"><FONT SIZE=2><BR>
6</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>2.2</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="72%"><FONT SIZE=2>Performance of Phase II of the BEA.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT"><FONT SIZE=2>6</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>2.3</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="72%"><FONT SIZE=2>Completion of BEA; Extension by Consent.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT"><FONT SIZE=2>7</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>2.4</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="72%"><FONT SIZE=2>Cost of BEA and Hercules' Investigations of Alliant Facilities.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT"><FONT SIZE=2>7</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>2.5</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="72%"><FONT SIZE=2>Termination of Principal Agreement.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT"><FONT SIZE=2>7</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD COLSPAN=7><FONT SIZE=2><BR>
ARTICLE THREE</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT"><FONT SIZE=2><BR>
7</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="4%"><FONT SIZE=2><BR>
3.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=5><FONT SIZE=2><BR>
Conditions to the Parties' Obligations.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT"><FONT SIZE=2><BR>
7</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="4%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2><BR>
3.1</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="72%"><FONT SIZE=2><BR>
ISRA&#151;Alliant New Jersey Facilities.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT"><FONT SIZE=2><BR>
7</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>3.2</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="72%"><FONT SIZE=2>ISRA&#151;Kenvil Facility.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT"><FONT SIZE=2>7</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>3.3</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="72%"><FONT SIZE=2>Efforts to Satisfy Closing Conditions.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT"><FONT SIZE=2>7</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD COLSPAN=7><FONT SIZE=2><BR>
ARTICLE FOUR</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT"><FONT SIZE=2><BR>
7</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="4%"><FONT SIZE=2><BR>
4.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=5><FONT SIZE=2><BR>
Representations and Warranties.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT"><FONT SIZE=2><BR>
7</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="4%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2><BR>
4.1</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="72%"><FONT SIZE=2><BR>
Hercules' Representations.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT"><FONT SIZE=2><BR>
7</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>4.2</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="72%"><FONT SIZE=2>Alliant's Representations.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT"><FONT SIZE=2>9</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>4.3</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="72%"><FONT SIZE=2>Materiality.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT"><FONT SIZE=2>9</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD COLSPAN=7><FONT SIZE=2><BR>
ARTICLE FIVE</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT"><FONT SIZE=2><BR>
9</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="4%"><FONT SIZE=2><BR>
5.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=5><FONT SIZE=2><BR>
Transfer of Environmental Permits.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT"><FONT SIZE=2><BR>
9</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD COLSPAN=7><FONT SIZE=2><BR>
ARTICLE SIX</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT"><FONT SIZE=2><BR>
10</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="4%"><FONT SIZE=2><BR>
6.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=5><FONT SIZE=2><BR>
Government Responsibility Demands.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT"><FONT SIZE=2><BR>
10</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="4%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2><BR>
6.1</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="72%"><FONT SIZE=2><BR>
Initiation and Administration of Government Responsibility Demands.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT"><FONT SIZE=2><BR>
10</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>6.2</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="72%"><FONT SIZE=2>Negotiation of Government Contracts.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT"><FONT SIZE=2>11</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>6.3</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="72%"><FONT SIZE=2>Status of Government Responsibility Demands.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT"><FONT SIZE=2>11</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>6.4</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="72%"><FONT SIZE=2>When No Government Responsibility Demand Is Made.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT"><FONT SIZE=2>11</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD COLSPAN=7><FONT SIZE=2><BR>
ARTICLE SEVEN</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT"><FONT SIZE=2><BR>
11</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="4%"><FONT SIZE=2><BR>
7.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=5><FONT SIZE=2><BR>
Alliant's Assumption of Liabilities.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT"><FONT SIZE=2><BR>
11</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD COLSPAN=7><FONT SIZE=2><BR>
ARTICLE EIGHT</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT"><FONT SIZE=2><BR>
11</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="4%"><FONT SIZE=2><BR>
8.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=5><FONT SIZE=2><BR>
Indemnification.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT"><FONT SIZE=2><BR>
11</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="4%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2><BR>
8.1</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="72%"><FONT SIZE=2><BR>
Hercules' Indemnification of Alliant.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT"><FONT SIZE=2><BR>
11</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>8.2</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="72%"><FONT SIZE=2>Limitations on Hercules' Indemnification of Alliant.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT"><FONT SIZE=2>12</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>8.3</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="72%"><FONT SIZE=2>Alliant's Indemnification of Hercules.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT"><FONT SIZE=2>13</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>8.4</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="72%"><FONT SIZE=2>Limitations on Alliant's Indemnification of Hercules.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT"><FONT SIZE=2>14</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="72%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
</TABLE>
<!-- insert table folio -->
<BR>
<P ALIGN="CENTER"><FONT SIZE=2>i</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=1,SEQ=2,EFW="2112669",CP="ALLIANT TECHSYSTEMS INC.",DN="2",CHK=725257,FOLIO='i',FILE='DISK014:[03STP4.03STP1624]KC1624A.;10',USER='CKASTNE',CD='14-JUN-2003;14:04' -->
<A NAME="page_kc1624_1_2"> </A>

<!-- end of table folio -->
<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD COLSPAN=7><FONT SIZE=2><BR>
ARTICLE NINE</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT"><FONT SIZE=2><BR>
14</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="4%"><FONT SIZE=2><BR>
9.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=5><FONT SIZE=2><BR>
Procedures for Environmental Indemnification Claims.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT"><FONT SIZE=2><BR>
14</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="4%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2><BR>
9.1</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="72%"><FONT SIZE=2><BR>
Environmental Conditions Identified At or Prior to Closing.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT"><FONT SIZE=2><BR>
14</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>9.2</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="72%"><FONT SIZE=2>Environmental Conditions Not Identified Before Closing.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT"><FONT SIZE=2>14</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>9.3</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="72%"><FONT SIZE=2>Third-Party Claims.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT"><FONT SIZE=2>14</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>9.4</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="72%"><FONT SIZE=2>Reimbursement Procedures.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT"><FONT SIZE=2>14</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD COLSPAN=7><FONT SIZE=2><BR>
ARTICLE TEN</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT"><FONT SIZE=2><BR>
15</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="4%"><FONT SIZE=2><BR>
10.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=5><FONT SIZE=2><BR>
Remedial Actions Under this Agreement.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT"><FONT SIZE=2><BR>
15</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="4%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2><BR>
10.1</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="72%"><FONT SIZE=2><BR>
Management of Remedial Actions.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT"><FONT SIZE=2><BR>
15</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>10.2</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="72%"><FONT SIZE=2>Performance of Remedial Action Under this Agreement.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT"><FONT SIZE=2>16</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>10.3</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="72%"><FONT SIZE=2>Maintenance of Engineering or Institutional Controls.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT"><FONT SIZE=2>17</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD COLSPAN=7><FONT SIZE=2><BR>
ARTICLE ELEVEN</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT"><FONT SIZE=2><BR>
17</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="4%"><FONT SIZE=2><BR>
11.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=5><FONT SIZE=2><BR>
Alliant New Jersey Facilities and ISRA.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT"><FONT SIZE=2><BR>
17</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD COLSPAN=7><FONT SIZE=2><BR>
ARTICLE TWELVE</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT"><FONT SIZE=2><BR>
17</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="4%"><FONT SIZE=2><BR>
12.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=5><FONT SIZE=2><BR>
Kenvil and Clearwater Facilities.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT"><FONT SIZE=2><BR>
17</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="4%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2><BR>
12.1</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="72%"><FONT SIZE=2><BR>
Leases for Kenvil and Clearwater Facilities.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT"><FONT SIZE=2><BR>
17</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>12.2</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="72%"><FONT SIZE=2>Compliance with ISRA&#151;Kenvil Facility.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT"><FONT SIZE=2>17</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD COLSPAN=7><FONT SIZE=2><BR>
ARTICLE THIRTEEN</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT"><FONT SIZE=2><BR>
18</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="4%"><FONT SIZE=2><BR>
13.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=5><FONT SIZE=2><BR>
Miscellaneous.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT"><FONT SIZE=2><BR>
18</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="4%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2><BR>
13.1</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="72%"><FONT SIZE=2><BR>
Exclusive Remedy.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT"><FONT SIZE=2><BR>
18</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>13.2</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="72%"><FONT SIZE=2>Third Party Actions.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT"><FONT SIZE=2>18</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>13.3</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="72%"><FONT SIZE=2>Incorporation of Terms of Principal Agreement.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT"><FONT SIZE=2>18</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>13.4</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="72%"><FONT SIZE=2>Schedules to Environmental Agreement.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT"><FONT SIZE=2>19</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>13.5</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="72%"><FONT SIZE=2>Notices.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT"><FONT SIZE=2>19</FONT></TD>
</TR>
</TABLE>
<!-- end of user-specified TAGGED TABLE -->

<P ALIGN="CENTER"><FONT SIZE=2>ii</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=2,SEQ=3,EFW="2112669",CP="ALLIANT TECHSYSTEMS INC.",DN="2",CHK=708683,FOLIO='ii',FILE='DISK014:[03STP4.03STP1624]KC1624A.;10',USER='CKASTNE',CD='14-JUN-2003;14:04' -->
<A NAME="page_kc1624_1_3"> </A>
<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="kc1624_index_of_defined_terms"> </A>
<A NAME="toc_kc1624_2"> </A>
<BR></FONT><FONT SIZE=2><B>INDEX OF DEFINED TERMS    <BR>    </B></FONT></P>

<!-- User-specified TAGGED TABLE -->
<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH WIDTH="91%" ALIGN="LEFT"><FONT SIZE=1><B>TERM<BR> </B></FONT><HR NOSHADE></TH>
<TH WIDTH="3%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="7%" ALIGN="CENTER"><FONT SIZE=1><B>PAGE</B></FONT><HR NOSHADE></TH>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="91%"><FONT SIZE=2>Alliant Facilities</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>1</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="91%"><FONT SIZE=2>Alliant New Jersey Facilities</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>1</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="91%"><FONT SIZE=2>Area of Environmental Concern</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>1</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="91%"><FONT SIZE=2>BEA</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>1</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="91%"><FONT SIZE=2>CERCLA</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>1</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="91%"><FONT SIZE=2>Clearwater Facility</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>1</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="91%"><FONT SIZE=2>Compliance with ISRA</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>1</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="91%"><FONT SIZE=2>Demolition Damages</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>1</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="91%"><FONT SIZE=2>Enforcement Notice</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>1</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="91%"><FONT SIZE=2>Engineering Controls</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>1</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="91%"><FONT SIZE=2>Environment</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>1</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="91%"><FONT SIZE=2>Environmental Authorities</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>1</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="91%"><FONT SIZE=2>Environmental Claim</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>2</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="91%"><FONT SIZE=2>Environmental Conditions</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>2</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="91%"><FONT SIZE=2>Environmental Conditions at a HAC Facility</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>2</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="91%"><FONT SIZE=2>Environmental Conditions at an Alliant Facility</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>2</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="91%"><FONT SIZE=2>Environmental Indemnification Claim</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>2</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="91%"><FONT SIZE=2>Environmental Indemnity</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>2</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="91%"><FONT SIZE=2>Environmental Laws</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>2</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="91%"><FONT SIZE=2>Environmental Permits</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>2</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="91%"><FONT SIZE=2>Environmental Review Committee</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>2</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="91%"><FONT SIZE=2>Facility</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>2</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="91%"><FONT SIZE=2>Federal Environmental Responsibility</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>3</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="91%"><FONT SIZE=2>Federal Land</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>3</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="91%"><FONT SIZE=2>Government Contract</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>3</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="91%"><FONT SIZE=2>Government Contract Law</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>3</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="91%"><FONT SIZE=2>Government Responsibility Demand</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>3</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="91%"><FONT SIZE=2>HAC Facilities</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>3</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="91%"><FONT SIZE=2>HAC Facility</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="91%"><FONT SIZE=2>Hazardous Substances</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>3</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="91%"><FONT SIZE=2>Hercules Environmental Representative</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="91%"><FONT SIZE=2>Institutional Controls</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>3</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="91%"><FONT SIZE=2>ISRA</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>3</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="91%"><FONT SIZE=2>ISRA Compliance Matter</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>3</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="91%"><FONT SIZE=2>Kenvil Facility</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>4</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="91%"><FONT SIZE=2>Knowledge</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>4</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="91%"><FONT SIZE=2>Known</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>4</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="91%"><FONT SIZE=2>Land</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>4</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="91%"><FONT SIZE=2>LNA</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>4</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="91%"><FONT SIZE=2>Lowest Cost Response</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>4</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="91%"><FONT SIZE=2>Material Change in a Remediation Standard</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>5</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="91%"><FONT SIZE=2>Negative Decision</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="91%"><FONT SIZE=2>NJDEP</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="91%"><FONT SIZE=2>Non-Federal Land</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>5</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="91%"><FONT SIZE=2>Notice of Environmental Conditions</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>5</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="91%"><FONT SIZE=2>Off-Site Environmental Conditions</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>5</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="91%"><FONT SIZE=2>Parties</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
</TABLE>
<!-- insert table folio -->
<BR>
<P ALIGN="CENTER"><FONT SIZE=2>iii</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=3,SEQ=4,EFW="2112669",CP="ALLIANT TECHSYSTEMS INC.",DN="2",CHK=612348,FOLIO='iii',FILE='DISK014:[03STP4.03STP1624]KC1624A.;10',USER='CKASTNE',CD='14-JUN-2003;14:04' -->
<A NAME="page_kc1624_1_4"> </A>
<!-- end of table folio -->
<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="91%"><FONT SIZE=2>Party</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>5</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="91%"><FONT SIZE=2>Phase II of the BEA</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>5</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="91%"><FONT SIZE=2>Principal Agreement</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>5</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="91%"><FONT SIZE=2>Recovery</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>5</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="91%"><FONT SIZE=2>Reimbursement Request</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="91%"><FONT SIZE=2>Release</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>5</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="91%"><FONT SIZE=2>Remedial Action</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>5</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="91%"><FONT SIZE=2>Remediation Agreement</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>6</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="91%"><FONT SIZE=2>Remediation Standards</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>6</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="91%"><FONT SIZE=2>Response to Environmental Conditions</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>6</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="91%"><FONT SIZE=2>Third-Party Claim</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>6</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="91%"><FONT SIZE=2>Third-Party Government Contractor</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>6</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="91%"><FONT SIZE=2>Transaction</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>6</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="91%"><FONT SIZE=2>Two Year Period</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="91%"><FONT SIZE=2>United States</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>6</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="91%"><FONT SIZE=2>USEPA</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
</TABLE>
<!-- end of user-specified TAGGED TABLE -->

<P ALIGN="CENTER"><FONT SIZE=2>iv</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=4,SEQ=5,EFW="2112669",CP="ALLIANT TECHSYSTEMS INC.",DN="2",CHK=74234,FOLIO='iv',FILE='DISK014:[03STP4.03STP1624]KC1624A.;10',USER='CKASTNE',CD='14-JUN-2003;14:04' -->
<!-- THIS IS THE END OF A COMPOSITION COMPONENT -->
<!-- TOC_END -->

<P><FONT SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This </FONT><FONT SIZE=2><B>ENVIRONMENTAL AGREEMENT</B></FONT><FONT SIZE=2> (the "Environmental Agreement") is made this 28th day of October&nbsp;1994 between </FONT> <FONT SIZE=2><B>ALLIANT TECHSYSTEMS
INC.</B></FONT><FONT SIZE=2>, a Delaware corporation ("Alliant"), and </FONT><FONT SIZE=2><B>HERCULES INCORPORATED</B></FONT><FONT SIZE=2> ("Hercules"), a
Delaware corporation. In consideration of the premises and the mutual covenants herein and in the Principal Agreement, the Parties agree as follows: </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="ke1624_article_one"> </A>
<A NAME="toc_ke1624_1"> </A>
<BR></FONT><FONT SIZE=2><B>ARTICLE ONE    <BR>    </B></FONT></P>

<P><FONT SIZE=2>1.</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Certain Definitions.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;For the purposes of this Agreement, the terms listed below shall have the meanings set forth in this
Article I. Any capitalized terms not defined in this Environmental Agreement shall have the meanings given to them in the Principal Agreement. All schedules referred to in this Environmental Agreement
are annexed and incorporated herein. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Alliant Facilities</I></FONT><FONT SIZE=2>" means the Facilities owned or operated by Alliant, except those Facilities that are HAC Facilities. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Alliant New Jersey Facilities</I></FONT><FONT SIZE=2>" means the Alliant Facilities located in the State of New Jersey. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Area of Environmental Concern</I></FONT><FONT SIZE=2>" means a geographically discrete area of Land containing Hazardous Substances or potentially containing
Hazardous Substances. Each discrete plume of groundwater is a separate Area of Environmental Concern. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>BEA</I></FONT><FONT SIZE=2>" means the Baseline Environmental Assessment to be performed by the Parties in accordance with Article&nbsp;II of this
Environmental Agreement. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>CERCLA</I></FONT><FONT SIZE=2>" means the Comprehensive Environmental Response Compensation and Liability Act, 42 U.S.C. 9601 </FONT> <FONT SIZE=2><I>et&nbsp;seq</I></FONT><FONT SIZE=2>., and the regulations promulgated thereunder.
</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Clearwater Facility</I></FONT><FONT SIZE=2>" means the HAC Facility located in Clearwater, Florida. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Compliance with ISRA</I></FONT><FONT SIZE=2>" means the receipt of a letter or other written determination from the NJDEP: (i)&nbsp;that ISRA is inapplicable
to a Facility, event, transaction or circumstance; (ii)&nbsp;that a Facility is exempt from ISRA; (iii)&nbsp;approving a Negative Declaration (as such term is defined under ISRA) or a No Further
Action Letter (as such term is defined under ISRA); or (iv)&nbsp;that a Party's obligations under ISRA or a Remediation Agreement have been satisfied. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Demolition Damages</I></FONT><FONT SIZE=2>" means the adjusted replacement cost of a building or structure or part thereof at a HAC Facility demolished as part
of a Remedial Action subject to the Environmental Indemnity. The adjustment shall be accomplished by the multiplication of the replacement cost by a fraction the denominator of which is the useful
life of the demolished portion of building or structure, and the numerator of which is the age of the demolished portion of the building or structure. In the event the Parties are unable to agree on
the replacement cost of the building or structure, its age or its useful life, these issues shall be resolved under the dispute resolution provisions of Article&nbsp;XIV of the Principal Agreement. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Environment Controls</I></FONT><FONT SIZE=2>" means (i)&nbsp;as to Environmental Conditions in New Jersey, the meaning given to such term under N.J.S.A.
58:10B-1 and regulations promulgated thereunder, as the same may be amended from time to time: and (ii)&nbsp;as to Environmental Conditions elsewhere, any mechanism to contain or stabilize Hazardous
Substances present within Land or to ensure the effectiveness of a Remedial Action, including but not limited to, caps, covers, dikes, encapsulation, trenches, leachate collection systems, liners,
slurry walls, signs, fences and access controls. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Enforcement Notice</I></FONT><FONT SIZE=2>" means any notice, notification, demand, directive, citation, summons, order, complaint or assessment issued by any
Environmental Authority under Environmental Laws. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Environment</I></FONT><FONT SIZE=2>" means air, surface water, groundwater, surface soil, subsurface soils and Land. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Environmental Authorities</I></FONT><FONT SIZE=2>" means the United States Environmental Protection Agency ("USEPA"), the New Jersey Department of Environmental
Protection ("NJDEP"), and all other federal, state, regional, county or local governmental agencies, departments, commissions, boards, </FONT></P>

<HR NOSHADE>
<!-- ZEQ.=1,SEQ=6,EFW="2112669",CP="ALLIANT TECHSYSTEMS INC.",DN="2",CHK=589735,FOLIO='blank',FILE='DISK014:[03STP4.03STP1624]KE1624A.;9',USER='CKASTNE',CD='14-JUN-2003;14:04' -->
<A NAME="page_ke1624_1_2"> </A>
<BR>

<P><FONT SIZE=2>bureaus,
instrumentalities and political subdivisions thereof authorized or having jurisdiction to enforce Environmental Laws. An "Environmental Authority" is any one of the foregoing authorities. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Environmental Claim</I></FONT><FONT SIZE=2>" means any and all claims, including Third-Party Claims, Enforcement Notices, Demolition Damages, judgments,
penalties, fines, encumbrances, liens, suits, losses, liabilities (including strict liability), assessments, damages, costs, settlements entered into in accordance with this Environmental Agreement
and expenses of investigation and defense of any claim, whether or not such claim is ultimately defeated, including but not limited to, reasonable attorneys' fees and disbursements and consultants'
fees, arising from Environmental Conditions, the Release or threatened Release of any Hazardous Substance or non-compliance with Environmental Laws. Notwithstanding the foregoing, "Environmental
Claim" shall not mean: (i)&nbsp;internal management, administrative or overhead costs of any Party that may reasonably be expected to be incurred in connection with the administration, supervision
or performance of actions required in accordance with this Environmental Agreement or to address subject matter of an Environmental Claim; or (ii)&nbsp;consequential or special damages of any Party,
including but not limited to, damages arising from loss of use, or loss of profit or income, provided however, that Environmental Claim shall mean costs arising from the necessary cessation of
production activities directly resulting from the implementation of a Remedial Action. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Environmental Conditions</I></FONT><FONT SIZE=2>" means any environmental contamination or pollution or threatened contamination or pollution arising out of any
Release or threatened Release of Hazardous Substances into the Environment. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Environmental Conditions at an Alliant Facility</I></FONT><FONT SIZE=2>" means Environmental Conditions on, at, under or from an Alliant Facility. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Environmental Conditions at a HAC Facility</I></FONT><FONT SIZE=2>" means Environmental Conditions on, at, under or from a HAC Facility. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Environmental Indemnification Claim</I></FONT><FONT SIZE=2>" means a claim pursuant to the Environmental Indemnity. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Environmental Indemnity</I></FONT><FONT SIZE=2>" means the indemnifications provided by Hercules and Alliant to each other pursuant to Article&nbsp;VIII of
this Environmental Agreement. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Environmental Laws</I></FONT><FONT SIZE=2>" means all federal, regional, state, county or laws, statutes, ordinances, decisional law, rules, regulations, codes,
orders, decrees, notices, directives and judgments relating to public health or safety, pollution, damage to or protection of the Environment, Environmental Conditions, Releases or threatened Releases
of Hazardous Substances into the Environment or the use, manufacture, processing, distribution, treatment, storage, generation, disposal, transport or handling of Hazardous Substances or radioactive
substances. Unless otherwise specified, Environmental Laws shall be as in effect at the time an action subject to this Environmental Agreement requiring the application of Environmental Law is
implemented. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Environmental Permits</I></FONT><FONT SIZE=2>" means all permits, licenses, waivers, variances, registrations and other authorizations required under
Environmental Laws by any federal, state or local government agency or Environmental Authority to operate a Facility or to implement any Remedial Action. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Environmental Review Committee</I></FONT><FONT SIZE=2>" means a group consisting of four (4)&nbsp;members whose responsibilities are defined in
Article&nbsp;X of this Environmental Agreement. Each Party shall designate two employees, of which one shall be in a senior management position, to serve as members of such committee. At the
Closing, each Party shall give notice to the other Party of the identity of the members it has selected for the Environmental Review Committee. Either Party may from time to time replace any member it
has appointed to the Environmental Review Committee by giving reasonable advance notice to the other Party in the manner specified herein. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Facility</I></FONT><FONT SIZE=2>" means any Land owned or operated by a Party, and the business operations conducted thereon. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>2</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=2,SEQ=7,EFW="2112669",CP="ALLIANT TECHSYSTEMS INC.",DN="2",CHK=157273,FOLIO='2',FILE='DISK014:[03STP4.03STP1624]KE1624A.;9',USER='CKASTNE',CD='14-JUN-2003;14:04' -->
<A NAME="page_ke1624_1_3"> </A>
<BR>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Federal Environmental Responsibility</I></FONT><FONT SIZE=2>" means that portion of any Environmental Claim related to any HAC Facility that is the ultimate
responsibility of the United States pursuant to Government Contract Law or any Government Contract. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Federal Land</I></FONT><FONT SIZE=2>" means a HAC Facility, or any portion thereof, owned by the United States. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Government Contract</I></FONT><FONT SIZE=2>" means any agreement or sub-contracting agreement, at any tier, relating to the HAC Business, the ownership,
operation, use, management or control of the HAC Facilities or which was or shall be performed, in whole or in part, at a HAC Facility:&nbsp;(x)&nbsp;between Hercules or Alliant and the United
States; or (y)&nbsp;between Hercules or Alliant and a Third Party Government Contractor, as to which the United States is the ultimate purchaser of the items manufactured or processed or services
rendered under the agreement. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Government Contract Law</I></FONT><FONT SIZE=2>" means all statutes, regulations, cost principles, orders, memoranda of decision, memoranda of understanding, or
other legally enforceable criterion relating to the responsibility of the United States to pay, reimburse or indemnify government contractors for Environmental Claims, including but not limited to,
the Federal Acquisition Regulation ("FAR"), Defense Federal Acquisition Regulation Supplements ("DFARS"), agency and departmental regulations, Public Law 85-804 and any related Memoranda of Decision
of the United States. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Government Responsibility Demand</I></FONT><FONT SIZE=2>" means a demand that a Federal Environmental Responsibility be paid by:&nbsp;(i)&nbsp;the United
States; or (ii)&nbsp;any third party, other than the United States, that is a party to a Government Contract. Notwithstanding the foregoing, a "Government Responsibility Demand" shall not include a
cost recovery claim asserted in litigation under CERCLA or other statutory Environmental Laws. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>HAC Facilities</I></FONT><FONT SIZE=2>" means the Facilities owned or operated by Hercules, GES or HDES in connection with the HAC Business, including but not
limited to, the Kenvil Facility, the Clearwater Facility, and the Facilities located at:&nbsp;Radford, Virginia; Magna, Clearfield and Tekoi, Utah; Rocket Center, West Virginia; DeSoto, Kansas; and
McGregor, Texas. A "HAC Facility" is any one of the foregoing HAC Facilities. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Hazardous Substances</I></FONT><FONT SIZE=2>" means (i)&nbsp;any pollutant, contaminant, petroleum, crude oil or any fraction thereof or hazardous waste or
hazardous substance, within the meaning of such terms under Environmental Laws; (ii)&nbsp;any other hazardous or toxic substance or material, or any material requiring investigation or remediation,
within the meaning of any Environmental Law applicable to the Facilities or operations conducted thereon; and (iii)&nbsp;any other substance or material regulated under Environmental Laws; provided
however, that materials that are incorporated into buildings shall not be Hazardous Substances except to the extent such materials were Released or presented a threat of Release prior to Closing. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>ISRA</I></FONT><FONT SIZE=2>" means the Industrial Site Recovery Act, N.J.S.A. 13:1K-6 </FONT><FONT SIZE=2><I>et seq</I></FONT><FONT SIZE=2>., and the
regulations promulgated thereunder, including the regulations promulgated under ISRA's predecessor statute, the Environmental Cleanup Responsibility Act, P.L.&nbsp;1983, c.&nbsp;330, to the extent
those regulations remain in effect. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>ISRA Compliance Matter</I></FONT><FONT SIZE=2>" means any administrative proceeding or proceedings that may be required to be initiated and conducted pursuant to
ISRA as to a particular Facility and a particular event, transaction or circumstance that gives rise to a statutory duty to comply with ISRA with respect to that Facility. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Institutional Controls</I></FONT><FONT SIZE=2>" means:&nbsp;(i)&nbsp;as to Environmental Conditions in New Jersey, the meaning given to such term under
N.J.S.A. 58:10B-l and any regulations promulgated thereunder, as the same may be amended from time to time; and (ii)&nbsp;as to Environmental Conditions elsewhere, a mechanism used to limit human
activities at or near an area contaminated with Hazardous Substances, or to ensure </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>3</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=3,SEQ=8,EFW="2112669",CP="ALLIANT TECHSYSTEMS INC.",DN="2",CHK=192900,FOLIO='3',FILE='DISK014:[03STP4.03STP1624]KE1624A.;9',USER='CKASTNE',CD='14-JUN-2003;14:04' -->
<A NAME="page_ke1624_1_4"> </A>
<BR>

<P><FONT SIZE=2>the
effectiveness over time of a Remedial Action, including but not limited to, recorded instruments creating a public record the presence of elevated concentrations or amounts of Hazardous Substances
or imposing binding and permanent restrictions running with the Land:&nbsp;(x)&nbsp;on the use of, or activities that may be conducted on or beneath, real property (including but not limited to,
restrictions on the use of real property for residential or non-industrial purposes); (y)&nbsp;requiring the temporary or permanent maintenance of Engineering Controls; or (z) restricting
groundwater use. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Kenvil Facility</I></FONT><FONT SIZE=2>" means the HAC Facility located at Howard Boulevard, Kenvil, New Jersey. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Known</I></FONT><FONT SIZE=2>" or "</FONT><FONT SIZE=2><I>Knowledge</I></FONT><FONT SIZE=2>" means the actual personal knowledge of an individual within a
Party's corporate structure at the plant manager or corporate level who has decision-making responsibility with regard to compliance with Environmental Laws. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>LNA</I></FONT><FONT SIZE=2>" means a Letter of Non-Applicability or other written determination by the NJDEP that ISRA is not applicable to: (i)&nbsp;a
particular event, transaction or other circumstance; or (ii)&nbsp;a particular Facility. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Land</I></FONT><FONT SIZE=2>" means the soil and water on or beneath the ground surface, Released Hazardous Substances presently in the soil or groundwater or
any abandoned object below the ground surface and any building or other permanent structures, whether or not abandoned, on the ground surface. Land does not include objects beneath the ground surface
in use or intended for future use at the time of the Closing, including but not limited to, active pipelines, sewers, drains or underground storage tanks except to the extent these objects relate to,
or are connected with, the Release of a Hazardous Substance. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Lowest Cost Response</I></FONT><FONT SIZE=2>" means the Response to Environmental Conditions that: (i) addresses the Hazardous Substances present in an Area of
Environmental Concern at the lowest cost, considered as a whole, as compared to any other Response to Environmental Conditions; and (ii)&nbsp;does not have a material adverse effect on the operation
of a Facility. The determination of which Response to Environmental Conditions is the Lowest Cost Response shall be based on the application of the Remediation Standards pertaining to the Hazardous
Substances to be addressed by the Response to Environmental Conditions (the "Applicable Remediation Standards") that are: (x)&nbsp;the least stringent Remediation Standards applicable to Land used
for purposes for which the HAC Facilities were used at the time of Closing; and (y)&nbsp;in effect at the time the Response to Environmental Conditions is implemented, provided however that if a
Material Change in a Remediation Standard has occurred, the Applicable Remediation Standards shall be the Remediation Standards in effect at the time of Closing. For purposes of determining the Lowest
Cost Response, the cost of a Response to Environmental Conditions shall specifically include, but not be limited to: (i)&nbsp;costs arising from the necessary cessation of production activities that
would directly result from the implementation of such Response to Environmental Conditions; and (ii) the costs of removing and disposing of any building, and any component parts thereof, that would be
necessitated by such Response to Environmental Conditions. Taking no action shall constitute the Lowest Cost Response if, after investigation of the Environmental Conditions of the Area of
Environmental Concern, taking no action is determined to be consistent with Environmental Laws and Applicable Remediation Standards. If taking no action is not consistent with Environmental Laws and
Applicable Remediation Standards, the least costly non-permanent remedy (such as an Institutional Control or an Engineering Control) shall be the Lowest Cost Response, provided that such non-permanent
remedy is consistent with Environmental Laws and Applicable Remediation Standards and is less costly than the least costly permanent remedy (such as the excavation and removal of contaminated soil).
Approval of a Remedial Action by an Environmental Authority exercising jurisdiction over an Area of Environmental Concern is not evidence that such Remedial Action constitutes the Lowest Cost Response
if: (i)&nbsp;a Material Change in a Remediation Standard with respect to any Hazardous Substances to be addressed by the Response to Environmental Conditions has occurred; or (ii)&nbsp;a Response
to Environmental Conditions of lower cost reasonably </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>4</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=4,SEQ=9,EFW="2112669",CP="ALLIANT TECHSYSTEMS INC.",DN="2",CHK=247178,FOLIO='4',FILE='DISK014:[03STP4.03STP1624]KE1624A.;9',USER='CKASTNE',CD='14-JUN-2003;14:04' -->
<A NAME="page_ke1624_1_5"> </A>
<BR>

<P><FONT SIZE=2>could
have been proposed to such Environmental Authority; provided however, that if: (x)&nbsp;there has not been a Material Change in the Remediation Standards applicable to the Response to
Environmental Conditions; (y)&nbsp;a Party has presented and diligently pursued a proposal to the applicable Environmental Authority to implement a Response to Environmental Conditions; and
(z)&nbsp;the Environmental Authority exercising jurisdiction over such Area of Environmental Concern has rejected such proposal as inconsistent with Environmental Laws, then such rejection shall
create a rebuttable presumption that the proposal was not the Lowest Cost Response. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Material Change in a Remediation Standard</I></FONT><FONT SIZE=2>" means an order of magnitude (tenfold) increase in stringency of a Remediation Standard between
the numeric value in effect at the time of Closing and the numeric value in effect at the time a Response to Environmental Conditions is implemented, such as, for example, a change in the numeric
value of a Remediation Standard from 10 parts per million to 1 part per million. With respect to numeric Remediation Standards that are derived by application of narrative Remediation Standards (such
as risk based criteria), a determination that a Material Change in a Remediation Standard has occurred shall be based on the evidence of actual guidances, reports or other documents issued,
promulgated or approved by Environmental Authorities, in effect at the time of Closing, setting forth the methodology by which numeric Remediation Standards shall be derived from the narrative
Remediation Standards. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Non-Federal Land</I></FONT><FONT SIZE=2>" means a HAC Facility, or any portion thereof, which is not owned by the United States. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Notice of Environmental Condition</I></FONT><FONT SIZE=2>" means a notice submitted pursuant to Article IX of this Environmental Agreement. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Off-Site Environmental Conditions</I></FONT><FONT SIZE=2>" means Environmental Conditions other than Environmental Conditions at HAC Facilities. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Party</I></FONT><FONT SIZE=2>" means either Hercules or Alliant. "Parties" shall mean Hercules and Alliant. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Phase II of the BEA</I></FONT><FONT SIZE=2>" means a second phase of the BEA to be performed in accordance with Article&nbsp;II that is intended to further
characterize Environmental Conditions at one or more HAC Facilities and may include the taking and analysis of soil and groundwater samples at or from such HAC Facilities. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Principal Agreement</I></FONT><FONT SIZE=2>" means the Purchase and Sale Agreement between the Parties. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Recovery</I></FONT><FONT SIZE=2>" means the amount received by a Party under or pursuant to any judgment, settlement or other resolution of any action against a
third party, less any reasonable attorneys' fees, experts' and consultant fees and other expenses incurred by the Party in pursuing such action. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Release</I></FONT><FONT SIZE=2>" means any intentional or unintentional release, discharge, spill, leaking, pumping, pouring, emitting, emptying, injection,
disposal or dumping into the Environment. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Remedial Action</I></FONT><FONT SIZE=2>" means any and all: (i)&nbsp;investigations of Environmental Conditions of any kind or nature whatsoever, including but
not limited to, assessments, remedial investigations, sampling or monitoring; or (ii)&nbsp;actions taken to address Environmental Conditions of any kind or nature whatsoever, including but not
limited to, the use, implementation, application, installation, operation or maintenance of removal actions, in-situ or ex-situ remediation technologies applied to the surface and sub-surface soils
(including but not limited to, biological treatment, land farming, soil vapor extraction, soil washing, solvent extraction and thermal desorption), excavation and off-site treatment or disposal of
soils, wells, sumps, trenches or other systems for the recovery of groundwater or free product, systems for long term treatment of surface water or groundwater, Engineering Controls or Institutional
Controls. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>5</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=5,SEQ=10,EFW="2112669",CP="ALLIANT TECHSYSTEMS INC.",DN="2",CHK=59900,FOLIO='5',FILE='DISK014:[03STP4.03STP1624]KE1624A.;9',USER='CKASTNE',CD='14-JUN-2003;14:04' -->
<BR>
<!-- THIS IS THE END OF A COMPOSITION COMPONENT -->

<P><FONT SIZE=2><A
NAME="page_kg1624_1_6"> </A> </FONT></P>

<!-- TOC_END -->

<P><FONT SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT SIZE=2><I>Remediation Agreement</I></FONT><FONT SIZE=2>" means an agreement between a Party and the NJDEP pursuant to the terms of ISRA permitting the consummation of the
Transaction. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Remediation Standards</I></FONT><FONT SIZE=2>" means either numeric or narrative standards to which Hazardous Substances in, on or around Land must be remediated
as established pursuant to Environmental Laws by an Environmental Authority with jurisdiction over such Land. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Response to Environmental Conditions</I></FONT><FONT SIZE=2>" means any response, including but not limited to, any Remedial Action, or no action, to address the
Hazardous Substances present in an Area of Environmental Concern that, if implemented at such Area of Environmental Concern, would satisfy the least stringent Remediation Standards or Environmental
Laws applicable to Land used for purposes for which the HAC Facilities were used at the time of Closing or as required by any lease agreement pertaining to a HAC Facility in effect at the time of
Closing, whichever is more stringent. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Third-Party Claim</I></FONT><FONT SIZE=2>" means an Environmental Claim asserted by an Environmental Authority or other third party, including but not limited
to, an Environmental Claim seeking monetary damages, penalties or the performance of any action with respect to (i)&nbsp;injury to property; (ii)&nbsp;personal injury; (iii)&nbsp;damage to
natural resources; (iv)&nbsp;non-compliance with Environmental Laws; or (v)&nbsp;Environmental Conditions. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Third-Party Government Contractor</I></FONT><FONT SIZE=2>" means a third-party, other than the United States, with which Hercules or Alliant has entered into a
Government Contract. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Transaction</I></FONT><FONT SIZE=2>" means the transaction between the Parties effected by the Principal Agreement. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>United States</I></FONT><FONT SIZE=2>" means the federal government of the United States of America, its executive departments, agencies, divisions, bureaus and
subdivisions, including but not limited to, the Department of Defense, the Department of the Army, the Department of the Navy, the Department of the Air Force and the National Aeronautics and Space
Administration. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="kg1624_article_two"> </A>
<A NAME="toc_kg1624_1"> </A>
<BR></FONT><FONT SIZE=2><B>ARTICLE TWO    <BR>    </B></FONT></P>

<P><FONT SIZE=2>2.</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Pre-Closing Environmental Assessments and Inspections.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Performance of Phase I of the BEA.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;The Parties initiated the performance of Phase I of the BEA prior to the
date of this Agreement. Phase I of the BEA consists of inspections of each HAC Facility by an environmental consultant selected by the Parties, a review of compliance with Environmental Laws at each
HAC Facility and identification of Areas of Environmental Concern at each HAC Facility. Following the execution of this Environmental Agreement, the Parties shall complete Phase I of the BEA. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Performance of Phase II of the BEA.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Following the completion of Phase I of the BEA, a Phase II of the BEA
shall be performed at any HAC Facility upon request by Alliant, which request shall be made not later than fifteen (15) business days following the completion of Phase I of the BEA, upon the following
terms: </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;Alliant
shall provide Hercules with a written proposed scope of work for such Phase&nbsp;II, including the information that shall be included in the Phase&nbsp;II
report(s). If the Parties are unable to reach agreement on the scope of work after conferring in good faith, Alliant shall be entitled to perform any Phase&nbsp;II activities to which Hercules has
objected (except Phase II activities to which Hercules has reasonably objected on health or safety grounds), provided that; (i)&nbsp;Alliant shall bear the cost of such activities;
(ii)&nbsp;Alliant shall cause such activities to be performed in a workmanlike manner and in accordance with all applicable professional standards; and (iii)&nbsp;Alliant shall perform reasonable
restoration of any disturbance to the Land of a HAC Facility resulting from such activities if the Transaction does not close. </FONT></P>

</UL>
<P ALIGN="CENTER"><FONT SIZE=2>6</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=1,SEQ=11,EFW="2112669",CP="ALLIANT TECHSYSTEMS INC.",DN="2",CHK=975105,FOLIO='6',FILE='DISK014:[03STP4.03STP1624]KG1624A.;11',USER='CKASTNE',CD='14-JUN-2003;14:04' -->
<A NAME="page_kg1624_1_7"> </A>
<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;Each
environmental consultant that will perform any portion of the Phase II activities must: (i)&nbsp;be approved by both Parties (not to be unreasonably withheld by
Hercules) after disclosure by each Party of any prior dealings or contractual relationship with such environmental consultant; (ii)&nbsp;enter into an agreement reasonably acceptable to both
Parties; and (iii)&nbsp;agree to provide and maintain in full force and effect a policy or policies of insurance of the type and with limits of coverage as agreed by the Parties. </FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Completion of BEA: Extension by Consent.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Phase I of the BEA shall be completed by November 23, 1994. If a
Phase II of the BEA is conducted, it shall be completed by a date mutually agreed upon by the Parties, but in no event later than the Closing. The foregoing notwithstanding, upon the mutual written
consent of the Parties (which shall not be unreasonably withheld by either of them), the period for completion of either phase of the BEA may be extended. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Cost of BEA and Hercules' Investigations of Alliant Facilities.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Except as set forth in Section 2.2, the cost
of performing Phase I of the BEA and any Phase II of the BEA agreed upon by the Parties shall be paid by each Party in equal shares. Each Party shall bear the sole cost of any investigation of an
Alliant or HAC Facility. This provisions shall survive the termination of this Environmental Agreement. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Termination of Principal Agreement.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Any termination of the Principal Agreement or this Environmental
Agreement based on the results of the BEA shall be governed exclusively by Section 12.1 of the Principal Agreement. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="kg1624_article_three"> </A>
<A NAME="toc_kg1624_2"> </A>
<BR></FONT><FONT SIZE=2><B>ARTICLE THREE    <BR>    </B></FONT></P>

<P><FONT SIZE=2>3.</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Conditions to the Parties' Obligations.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;The obligations of Alliant and Hercules to effect the Transaction shall be subject
to the satisfaction or written waiver (where permissible), on or before the Closing Date, of each of the following conditions: </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;ISRA&#151;Alliant New Jersey Facilities.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;With respect to each Alliant New Jersey Facility, Alliant
shall have either: (i)&nbsp;secured a LNA with respect to such Alliant New Jersey Facility, based on a true and complete LNA application or applications satisfactory in form and substance to
Hercules; (ii)&nbsp;achieved Compliance with ISRA; or (iii)&nbsp;secured and executed a Remediation Agreement issued by the NJDEP under ISRA permitting the Transaction with respect to such Alliant
New Jersey Facility. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;ISRA&#151;Kenvil Facility.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Hercules shall have secured and executed a Remediation Agreement under
ISRA permitting the transfer of the Kenvil Facility contemplated by the Principal Agreement. Alliant shall have executed any documents reasonably requested by Hercules to obtain the Remediation
Agreement. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Efforts to Satisfy Closing Conditions.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;The Parties shall use their best efforts to satisfy the conditions
established by this Article Three. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="kg1624_article_four"> </A>
<A NAME="toc_kg1624_3"> </A>
<BR></FONT><FONT SIZE=2><B>ARTICLE FOUR    <BR>    </B></FONT></P>

<P><FONT SIZE=2>4.</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Representations and Warranties.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Hercules' Representations.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Hercules represents and warrants to Alliant that: </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Permits.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Except as set forth in Schedule EA 4.1(a)(1), to the Knowledge of Hercules, GES and HDES, all
Environmental Permits necessary for the operation of the HAC Facilities and the HAC Business as they have been operated within the two (2)&nbsp;years prior to Closing have been issued and all such
Environmental Permits are in full force and effect and all appeal periods for such permits have expired. Except as set forth in Schedule EA 4.1(a)(2), to the Knowledge of Hercules, GES and HDES,
Hercules, GES and HDES are in compliance in all material respects </FONT></P>

</UL>
<P ALIGN="CENTER"><FONT SIZE=2>7</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=2,SEQ=12,EFW="2112669",CP="ALLIANT TECHSYSTEMS INC.",DN="2",CHK=352315,FOLIO='7',FILE='DISK014:[03STP4.03STP1624]KG1624A.;11',USER='CKASTNE',CD='14-JUN-2003;14:04' -->
<A NAME="page_kg1624_1_8"> </A>
<UL>

<P><FONT SIZE=2>with
the Environmental Permits issued for the operation of the HAC Facilities and the HAC Business. Except as set forth in Schedule EA 4.1(a)(3), to the Knowledge of Hercules, GES and HDES, there is
no reason that the Environmental Permits issued to Hercules, GES and HDES cannot be transferred to Alliant in the Ordinary Course of Business without undue cost or delay to Alliant. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Existing Claims.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Except as set forth in Schedule EA 4.1(b), and except for Environmental Claims that have
been fully and finally resolved, to the Knowledge of Hercules, GES and HDES, no Environmental Claim has been asserted or threatened: (i)&nbsp;with respect to any alleged violation of any
Environmental Laws applicable to the HAC Facilities and the HAC Business or the terms and conditions of Environmental Permits necessary for the operation of the HAC Facilities and the HAC Business;
(ii)&nbsp;with respect to any alleged failure to have any Environmental Permits necessary for the operation of the HAC Facilities or the HAC Business; or (iii)&nbsp;with respect to any generation,
treatment, storage, recycling, transportation, disposal or Release of any Hazardous Substance generated in connection with the HAC Facilities or the HAC Business. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Hazardous Substances.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Except as set forth in Schedule EA 4.1(c), to the Knowledge of Hercules, GES and HDES,
there are no Hazardous Substances stored at, located on or disposed of at or from any of the HAC Facilities in material violation of any Environmental Law or which could be required to be remediated
under any Environmental Law. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Compliance with Laws.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Except as set forth in Schedule EA 4.1(d), to the Knowledge of Hercules, GES and HDES,
the HAC Facilities and the HAC Business are in compliance in all material respects with all Environmental Laws. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Off-Site Disposal of Hazardous Substances at Site Listed for Cleanup.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Except as set forth in Schedule EA
4.1(e), in connection with the HAC Facilities and HAC Business, to the Knowledge of Hercules, GES or HDES, neither Hercules, GES nor HDES has transported, or arranged (directly or indirectly) for the
transportation of, any Hazardous Substance for disposal at any location which is listed, or proposed for listing, on the National Priorities List promulgated pursuant to CERCLA or on any similar state
list of sites requiring Remedial Action, or which is undergoing Remedial Action pursuant to Environmental Laws. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Real Property Used in HAC Business Listed for Cleanup.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Except as set forth in Schedule EA 4.1(f), to the
Knowledge of Hercules, GES or HDES: (i)&nbsp;no oral or written notification of a Release of a Hazardous Substance, with respect to a HAC Facility or the HAC Business, has been filed with any
Environmental Authority; (ii)&nbsp;no HAC Facility is undergoing Remedial Action pursuant to Environmental Laws; and (iii) no Facility now or previously owned, operated, managed, used or controlled
by Hercules, GES or HDES with respect to the HAC Business is listed or proposed for listing on the National Priorities List promulgated pursuant to CERCLA or on any comparable state list of sites
requiring Remedial Action or is undergoing Remedial Action pursuant to Environmental Laws. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Hercules Environmental Documents.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;There are no non-privileged environmental investigations, studies, audits,
tests, reviews or other analyses of Environmental Conditions conducted by or which are in the possession of Hercules, GES or HDES in relation to the HAC Facilities which have not been made available
to Alliant for review or as to which the material information contained therein has not been conveyed to Alliant prior to the date of this Environmental Agreement. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Liens.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Except as set forth in Schedule EA 4.1(h), no lien has attached to any of the HAC Facilities owned by
Hercules, GES or HDES as a result of the expenditure of monies by any Environmental Authority or other third party to pay for Remedial Actions at the HAC Facilities. </FONT></P>

</UL>
<P ALIGN="CENTER"><FONT SIZE=2>8</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=3,SEQ=13,EFW="2112669",CP="ALLIANT TECHSYSTEMS INC.",DN="2",CHK=42199,FOLIO='8',FILE='DISK014:[03STP4.03STP1624]KG1624A.;11',USER='CKASTNE',CD='14-JUN-2003;14:04' -->
<A NAME="page_kg1624_1_9"> </A>
<UL>
<BR>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Institutional Controls.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Except as set forth in Schedule EA 4.1(i), to the Knowledge of Hercules, GES or
HDES, no Institutional Control has been imposed or recorded in any public document with respect to any of the HAC Facilities. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Engineering Controls.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Except as set forth in Schedule EA 4.1(j), to the Knowledge of Hercules, GES or HDES,
no Engineering Control has been implemented or installed at any of the HAC Facilities. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;No Other Representations.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Alliant acknowledges that, except as specifically set forth in this Environmental
Agreement, Hercules, GES or HDES have not made any representations or warranties of any kind or nature concerning environmental matters, including but not limited to, Environmental Conditions or
compliance with Environmental Laws in connection with the HAC Business or the HAC Facilities. </FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Alliant's Representations.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Alliant represents and warrants to Hercules that: </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Compliance with Environmental Laws.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Except as set forth in Schedule EA 4.2(a), to its Knowledge, Alliant is
in compliance in all material respects with Environmental Laws applicable to the business of Alliant. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Permits.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Except as set forth in Schedule EA 4.2(b)(1), to the Knowledge of Alliant, all Environmental
Permits necessary for the operation of the Alliant Facilities have been issued to Alliant and are in full force and effect. Except as set forth in Schedule EA 4.2(b)(2), Alliant is in compliance in
all material respects with the Environmental Permits issued to Alliant. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Existing Claims.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Except as set forth in Schedule EA 4.2(c), and except for Environmental Claims that have
been fully and finally resolved, to Alliant's Knowledge, no Environmental Claim has been asserted or threatened with respect to any: (i) alleged violation by Alliant of any Environmental Laws or the
terms and conditions of any Environmental Permits issued to Alliant; (ii)&nbsp;alleged failure by Alliant to have any Environmental Permits; or (iii)&nbsp;generation, treatment, storage,
recycling, transportation, disposal or Release of any Hazardous Substance generated by Alliant. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;No Other Representations.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Hercules acknowledges that, except as specifically set forth in this Article,
Alliant has not made any representations or warranties of any kind or nature concerning environmental matters, including but not limited to, Environmental Conditions or compliance with Environmental
Laws in connection with the business of Alliant or the Alliant Facilities. </FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Materiality.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;For the sole purpose of this Article&nbsp;IV, a breach of a representation or warranty shall
not be deemed to be "material" unless the total amount of the Environmental Claim that could be imposed on, incurred by or asserted against the Party making the representation in respect of the
matters that were the subject of the representation or warranty exceeds $10,000. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="kg1624_article_five"> </A>
<A NAME="toc_kg1624_4"> </A>
<BR></FONT><FONT SIZE=2><B>ARTICLE FIVE    <BR>    </B></FONT></P>

<P><FONT SIZE=2>5.</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Transfer of Environmental Permits.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Hercules shall reasonably cooperate with Alliant to facilitate the transfer to Alliant
of the Environmental Permits issued to Hercules, GES and HDES with respect to the operation of the HAC Facilities and shall initiate and administer applications or notices for the transfer of any such
Environmental Permit if Hercules, but not Alliant, has the legal authority to seek such transfer, provided however, that this provision shall not obligate Hercules to incur any cost or monetary
obligation in connection with the transfer of such Environmental Permits, except such internal management or administrative costs as may reasonably be expected to be incurred in connection with the
administration of an application or notice to transfer an Environmental Permit. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>9</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=4,SEQ=14,EFW="2112669",CP="ALLIANT TECHSYSTEMS INC.",DN="2",CHK=873970,FOLIO='9',FILE='DISK014:[03STP4.03STP1624]KG1624A.;11',USER='CKASTNE',CD='14-JUN-2003;14:04' -->
<BR>
<!-- THIS IS THE END OF A COMPOSITION COMPONENT -->
<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="page_ki1624_1_10"> </A> </FONT></P>

<!-- TOC_END -->
<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="ki1624_article_six"> </A>
<A NAME="toc_ki1624_1"> </A>
<BR></FONT><FONT SIZE=2><B>ARTICLE SIX    <BR>    </B></FONT></P>

<P><FONT SIZE=2>6.</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Government Responsibility Demands.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Initiation and Administration of Government Responsibility Demands.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;Alliant
shall initiate and administer those Government Responsibility Demands as to which there is a reasonable legal basis to assert that an Environmental Claim arising
from a HAC Facility or HAC Business that forms or may form the basis of an Environmental Indemnification Claim by Alliant against Hercules is a Federal Environmental Responsibility, as follows:
(i)&nbsp;following the Closing, Alliant shall initiate and administer Government Responsibility Demands which Alliant has legal standing to enforce pursuant to Government Contract Law or Government
Contracts to which Alliant is a party and shall use diligent efforts to secure reimbursement for the underlying Environmental Claim; and (ii)&nbsp;Alliant shall assume the administration of any
Government Responsibility Demand initiated by Hercules prior to Closing and shall use diligent efforts to secure reimbursement for the underlying Environmental Claim. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;Alliant
shall have no obligation to continue to administer a Government Responsibility Demand with respect to Environmental Claims arising from a HAC Facility or a HAC
Business located on Non-Federal Land after two years from the date of the first assertion by the United States or the Third Party Government Contractor as to its position on whether the Environmental
Claim underlying the Government Responsibility Demand constitutes a Federal Environmental Responsibility (the "</FONT><FONT SIZE=2><I>Two Year Period</I></FONT><FONT SIZE=2>"). Notwithstanding the
foregoing, Alliant shall continue to administer a Government Responsibility Demand following the expiration of a Two Year Period if: (i)&nbsp;the United States or the Third Party Government
Contractor has determined that the Environmental Claim underlying the Government Responsibility Demand is a Federal Environmental Responsibility; (ii)&nbsp;the United States or or the Third Party
Government Contractor is paying reimbursement to Alliant pursuant to the Government Responsibility Demand; or (iii)&nbsp;Hercules agrees in writing to pay Alliant for reasonable costs incurred by
Alliant in connection therewith, including but not limited to, reasonable attorneys' fees, experts' and consultant fees and other reasonable expenses, and to pay a reasonable hourly fee for time spent
by Alliant personnel in administering such Government Responsibility Demand. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;Alliant
shall have no obligation to continue to administer any Government Responsibility Demand with respect to an Environmental Claim arising from a HAC Facility or HAC
Business located on Federal Land from the date a decision is rendered that the Environmental Claim underlying the Government Responsibility Demand is not a Federal Environmental Responsibility by
either the United States Armed Services Board of Contract Appeals or the United States Court of Claims (the "</FONT><FONT SIZE=2><I>Negative Decision</I></FONT><FONT SIZE=2>"). Notwithstanding the
foregoing, Alliant shall continue to administer such Government Responsibility Demand following the issuance of a Negative Decision if Hercules agrees in writing to pay Alliant for reasonable costs
incurred by Alliant in connection therewith, including but not limited to, reasonable attorneys' fees, experts' and consultant fees and other reasonable expenses, and to pay a reasonable hourly fee
for time spent by Alliant personnel in administering such Government Responsibility Demand. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;Hercules
shall reimburse Alliant for any Environmental Claim subject to such Government Responsibility Demand, in the manner provided by Article&nbsp;IX of this
Agreement, notwithstanding any contention by Hercules that such Environmental Claim is a Federal Environmental Responsibility upon: (x)&nbsp;with respect to a Government Responsibility Demand
arising from a HAC Facility or HAC Business located on Non-Federal Land, the expiration of a Two Year Period, provided however, that Hercules shall have no obligation to reimburse Alliant to the
extent the United States or a third party is paying reimbursement to Alliant with respect to the Environmental Claim pursuant to a Government Responsibility Demand; and (y) with respect to a </FONT></P>

</UL>
<P ALIGN="CENTER"><FONT SIZE=2>10</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=1,SEQ=15,EFW="2112669",CP="ALLIANT TECHSYSTEMS INC.",DN="2",CHK=11128,FOLIO='10',FILE='DISK014:[03STP4.03STP1624]KI1624A.;15',USER='CKASTNE',CD='14-JUN-2003;14:04' -->
<A NAME="page_ki1624_1_11"> </A>
<UL>
<BR>

<P><FONT SIZE=2>Government
Responsibility Demand arising from a HAC Facility or HAC Business located on Federal Land, the issuance of a Negative Decision. Notwithstanding the foregoing, Hercules shall reimburse
Alliant for an Environmental Claim pursuant to this Section 6.1(d) only to the extent the Environmental Claim would otherwise be subject to Hercules' obligation to indemnify Alliant under
Article&nbsp;VIII of this Agreement and provided that Alliant shall reimburse Hercules to the extent of any subsequent allowance of, or other consideration or payment received by Alliant with
respect to, the Government Responsibility Demand. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;Notwithstanding
this Section 6.1, Hercules shall pay for the performance of Remedial Actions with respect to the Clearwater Facility and the Kenvil Facility in
accordance with Article&nbsp;XII. </FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Negotiation of Government Contracts.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;With respect to the negotiation of Government Contracts to which
Alliant is a party, Alliant shall use reasonable efforts to secure reasonably obtainable consents and other authorizations to facilitate addressing Environmental Conditions at HAC Facilities in a cost
effective manner. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Status of Government Responsibility Demands.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Following the Closing, on the first business day of February
and August of every year, until the termination date for this requirement, Alliant shall deliver to Hercules a report summarizing the status of each Government Responsibility Demand administered by
Alliant. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;When No Government Responsibility Demand Is Made.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;If Alliant does not file a Government Responsibility
Demand pursuant to this Article&nbsp;VI with respect to an Environmental Claim as to which Alliant seeks indemnification from Hercules pursuant to this Environmental Agreement, any dispute with
respect to whether the Environmental Claim constitutes a Federal Environmental Responsibility shall be determined under the dispute resolution procedures established by Article&nbsp;XIV of the
Principal Agreement, either in connection with a Reimbursement Request by Alliant or at such other time as either Party shall elect to submit the matter for dispute resolution. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="ki1624_article_seven"> </A>
<A NAME="toc_ki1624_2"> </A>
<BR></FONT><FONT SIZE=2><B>ARTICLE SEVEN    <BR>    </B></FONT></P>

<P><FONT SIZE=2>7.</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Alliant's Assumption of Liabilities.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Except as specifically provided in Articles VIII and XII of this Environmental
Agreement, following the Closing, Alliant shall assume liability for all Environmental Claims associated with the HAC Business or the ownership, operation, use, management or control of the HAC
Facilities, including but not limited to, all Environmental Claims associated with Environmental Conditions at the HAC Facilities or Environmental Claims associated with achieving compliance with
Environmental Laws and with all Environmental Permits with respect to the operation of the HAC Facilities and the HAC Business. The foregoing notwithstanding, Alliant shall not assume liability for
any and all Third-Party Claims arising from or relating to Off-Site Environmental Conditions resulting from the operation of the HAC Business prior to the Closing (i)&nbsp;at Federal Land, but only
if such Third-Party Claims are first asserted against Alliant or Hercules after the tenth (10th) anniversary of the Closing; and (ii)&nbsp;at Non-Federal Land, but only if such Third-Party Claims
are first asserted against Alliant or Hercules after the fifth (5th) anniversary of the Closing. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="ki1624_article_eight"> </A>
<A NAME="toc_ki1624_3"> </A>
<BR></FONT><FONT SIZE=2><B>ARTICLE EIGHT    <BR>    </B></FONT></P>

<P><FONT SIZE=2>8.</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Indemnification.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Hercules' Indemnification of Alliant.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Subject to Section 8.2 of this Environmental Agreement and the
limitation on indemnification established by Section 13.5 of the Principal Agreement, Hercules shall defend, indemnify and hold harmless Alliant from and against the following: </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;Any
and all Environmental Claims imposed on, incurred by or asserted against Alliant, or for which Alliant may be liable or obligated, arising from or relating to
Environmental Conditions </FONT></P>

</UL>
<P ALIGN="CENTER"><FONT SIZE=2>11</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=2,SEQ=16,EFW="2112669",CP="ALLIANT TECHSYSTEMS INC.",DN="2",CHK=992827,FOLIO='11',FILE='DISK014:[03STP4.03STP1624]KI1624A.;15',USER='CKASTNE',CD='14-JUN-2003;14:04' -->
<A NAME="page_ki1624_1_12"> </A>
<UL>

<P><FONT SIZE=2>at
a HAC Facility to the extent such Environmental Conditions result from or relate to the Release of Hazardous Substances from, under, into or onto the HAC Facility prior to the Closing; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;Any
and all Environmental Claims imposed on, incurred by or asserted against Alliant, or for which Alliant may be liable or obligated, resulting from or relating in any
way to the treatment, storage, disposal or Release (or arrangement for the same), prior to the Closing, at any location other than a HAC Facility of a Hazardous Substance used, generated or handled in
connection with the HAC Facilities or the HAC Business by Hercules, GES or HDES or by any entity to which any of them is or may be deemed a successor or assignee; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;Any
and all fines and penalties (including civil monetary penalties or settlement payments in lieu of penalties) imposed on, incurred by or asserted against Alliant, or
for which Alliant may be liable or obligated, arising out of non-compliance with Environmental Laws or Environmental Permits by Hercules, GES or HDES, or any entity to which any of them is or may be
deemed a successor or assignee, in connection with the HAC Business or the operation of the HAC Facilities to the extent such non-compliance occurred prior to the Closing or after the Closing in
connection with the performance of a Remedial Action at the Kenvil or Clearwater Facilities; and </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;Any
and all Environmental Claims imposed on, incurred by or asserted against Alliant, or for which Alliant may be liable or obligated, arising from or relating
to Hercules' breach of any of the representations and warranties set forth in Article&nbsp;IV of this Environmental Agreement or from Hercules' breach of any other obligations of Hercules set forth
in this Environmental Agreement. </FONT></P>

</UL>

<P><FONT SIZE=2>Notwithstanding
anything in this Environmental Agreement to the contrary, the provisions of Section 13.5 of the Principal Agreement shall not apply to amounts incurred by Hercules in connection with
the performance of Remedial Actions at the Clearwater Facility or in connection with its obligation pursuant to Article&nbsp;XI of this Environmental Agreement to achieve Compliance with ISRA at the
Kenvil Facility. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Limitations on Hercules' Indemnification of Alliant.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding anything in the Environmental Agreement
to the contrary, Hercules shall have no obligation to indemnify Alliant with respect to the following: </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;Any
and all Environmental Claims as to which Alliant has not given notice in accordance with Section 9.2 of this Environmental Agreement with respect to:
(i)&nbsp;Environmental Claims arising from
Environmental Conditions on, at, under or from Federal Land, prior to the tenth (10th) anniversary of the date of the Closing; and (ii)&nbsp;all other Environmental Claims, prior to the fifth (5th)
anniversary of the date of the Closing. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;Any
and all Environmental Claims otherwise subject to indemnification pursuant to this Environmental Agreement to the extent that such Environmental Claims are
determined to be a Federal Environmental Responsibility pursuant to the provisions of Article&nbsp;VI of this Environmental Agreement; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;Any
and all Environmental Claims arising out of or relating to an Area of Environmental Concern if a Response to Environmental Conditions has already been implemented
after the Closing, provided however, that this limitation shall not apply as to any Area of Environmental Concern in respect of which the implemented Response to Environmental Conditions consisted of
no action; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;Any
and all Environmental Claims arising out of or relating to Environmental Conditions on, at or from: (i)&nbsp;Federal Land resulting from the Release of materials
that were not first regulated as Hazardous Substances prior to the tenth (10th) anniversary of the date of the Closing; </FONT></P>

</UL>
<P ALIGN="CENTER"><FONT SIZE=2>12</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=3,SEQ=17,EFW="2112669",CP="ALLIANT TECHSYSTEMS INC.",DN="2",CHK=578668,FOLIO='12',FILE='DISK014:[03STP4.03STP1624]KI1624A.;15',USER='CKASTNE',CD='14-JUN-2003;14:04' -->
<A NAME="page_ki1624_1_13"> </A>
<UL>
<BR>

<P><FONT SIZE=2>and
(ii)&nbsp;Non-Federal Land resulting from the Release of materials that were not first regulated as Hazardous Substances prior to the fifth (5th) anniversary of the date of the Closing; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;Any
and all Environmental Claims to the extent Alliant receives a Recovery with respect to such Environmental Claims; and </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;Any
and all Environmental Claims that are subject to Alliant's obligation to indemnify Hercules. </FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.3</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Alliant's Indemnification of Hercules.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Subject to Section 8.4 of this Environmental Agreement, Alliant shall
defend, indemnify and hold harmless Hercules from and against the following: </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;Any
and all Environmental Claims imposed on, incurred by or asserted against Hercules, or for which Hercules may be liable or obligated, arising from or relating to a
Release of a Hazardous Substance at the HAC Facilities occurring after the Closing. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;Any
and all Environmental Claims imposed on, incurred by or asserted against Hercules, or for which Hercules may be liable or obligated, resulting from or relating in
any way to the treatment, storage, disposal or Release (or arrangement for the same) at any location other than the HAC Facilities of a Hazardous Substance used, generated or handled by Alliant in
connection with the HAC Business or the ownership, operation, management, use or control of the HAC Facilities after the Closing, but only to the extent such Environmental Claims do not result from or
relate to the use, generation, treatment, storage, disposal or Release (or arrangement for the same) of the Hazardous Substance prior to the Closing; </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;Any
and all Environmental Claims imposed on, incurred by or asserted against Hercules, or for which Hercules may be liable or obligated, arising out of or relating to an
Area of Environmental Concern as to which a Response to Environmental Conditions has been implemented at a HAC Facility after the Closing, provided however, that Alliant shall not have any obligation
to indemnify Hercules pursuant to this Section 8.3(c) as to any such Area of Environmental Concern in respect of which the implemented Response to Environmental Conditions consisted of no action; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;Any
and all fines and penalties (including civil monetary penalties or settlement payments in lieu of penalties) imposed on, incurred by or asserted against Hercules, or
for which Hercules may be liable or obligated, arising out of non-compliance with Environmental Laws or Environmental Permits at the HAC Facilities after the Closing, provided however, that such
non-compliance is not attributable to the Release of Hazardous Substance prior to the Closing; and further provided that Alliant shall not have any obligation to indemnify or hold harmless Hercules
from and against any fines or penalties related to non-compliance by Hercules (or consultants, contractors or subcontractors of Hercules) occurring after the Closing in the performance of a Remedial
Action at the Kenvil Facility or the Clearwater Facility; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;Any
and all Environmental Claims imposed on, incurred by or asserted against Hercules, or for which Hercules may be liable or obligated, arising from or relating in any
way to the cost of addressing an Area of Environmental Concern at a HAC Facility to the extent exceeding the cost of the Lowest Cost Response; and </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;Any
and all Environmental Claims imposed on, incurred by or asserted against Hercules, or for which Hercules may be liable or obligated, arising from or relating to
Alliant's breach of any of the representations and warranties set forth in Article&nbsp;IV of this Environmental Agreement or from Alliant's breach of its obligations under this Environmental
Agreement, including but not limited to, its obligations pursuant to Article&nbsp;VI hereof. </FONT></P>

</UL>
<P ALIGN="CENTER"><FONT SIZE=2>13</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=4,SEQ=18,EFW="2112669",CP="ALLIANT TECHSYSTEMS INC.",DN="2",CHK=66118,FOLIO='13',FILE='DISK014:[03STP4.03STP1624]KI1624A.;15',USER='CKASTNE',CD='14-JUN-2003;14:04' -->
<A NAME="page_ki1624_1_14"> </A>
<UL>
<BR>
</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.4</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Limitations on Alliant's Indemnification of Hercules.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding anything in the Environmental
Agreement to the contrary, Alliant shall have no obligation to indemnify Hercules with respect to the following: </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;Any
and all Environmental Claims to the extent Hercules receives a Recovery with respect to such Environmental Claims. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;Any
and all Environmental Claims arising from the obligation to perform Remedial Actions with respect to non-sudden and recurring Releases occurring after the Closing at
the Clearwater Facility or the Kenvil Facility, but with respect to the Kenvil Facility only to the extent any such Release occurs before the third (3rd) anniversary of the Closing Date. "Non-Sudden"
for purposes of this Section 8.4(b)&nbsp;shall have a temporal meaning. </FONT></P>

</UL>
<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="ki1624_article_nine"> </A>
<A NAME="toc_ki1624_4"> </A>
<BR></FONT><FONT SIZE=2><B>ARTICLE NINE    <BR>    </B></FONT></P>

<P><FONT SIZE=2>9.</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Procedures for Environmental Indemnification Claims.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Environmental Conditions Identified At or Prior to Closing.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Alliant shall not be required to provide notice
to Hercules of any Environmental Condition identified in the BEA or any Schedule attached to this Environmental Agreement. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Environmental Conditions Not Identified Before Closing.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;With
respect to any Environmental Condition not identified in the BEA or any Schedule attached to this Environmental Agreement as to which Alliant is seeking or may seek
indemnification from Hercules pursuant to this Environmental Agreement, Alliant shall promptly provide to Hercules a Notice of Environmental Conditions upon receiving Knowledge of the Environmental
Condition. In any event, Alliant shall provide such Notice of Environmental Conditions within ninety (90) days from the day upon which Alliant receives Knowledge of such Environmental Condition. The
Notice of Environmental Conditions shall set forth, to the extent Known by Alliant, the nature and the location of the Environmental Condition, the source and cause of the Environmental Condition, the
identity and estimated quantity of the Hazardous Substance present and any response taken or planned to be taken by Alliant to address the Environmental Condition. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;Alliant's
failure to notify Hercules of an Environmental Condition in accordance with Section 9.2(a) of this Environmental Agreement shall relieve Hercules of its
obligation under the Environmental Indemnity as it pertains to any matter which should have been the subject of the notification to the extent, but only to the extent, as a direct and proximate result
of such failure, there is a material adverse effect upon Hercules' rights under this Environmental Agreement. </FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.3</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Third-Party Claims.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;The procedures for indemnification with respect to Third-Party Claims shall be governed
by Article&nbsp;XIII of the Principal Agreement; provided however, that in the event any Party is required by any Enforcement Notice or any judgment, order, settlement, agreement or other resolution
of any Third-Party Claim to perform a Remedial Action, the performance of such Remedial Action shall be governed by this Environmental Agreement. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.4</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Reimbursement Procedures.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;A
party shall submit requests for reimbursement of Environmental Claims to which it claims a right of indemnification pursuant Article&nbsp;VIII of this Environmental
Agreement or of payment pursuant to Section 6.1(d) of this Environmental Agreement ("</FONT><FONT SIZE=2><I>Reimbursement Request</I></FONT><FONT SIZE=2>"), as provided herein: </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;With
respect to any Environmental Claim subject to Alliant's obligation to initiate and administer a Government Responsibility Demand under Article&nbsp;VI of this
Environmental Agreement, Alliant shall not present a Reimbursement Request before the time provided by Section 6.l(d); and </FONT></P>

</UL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2>14</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=5,SEQ=19,EFW="2112669",CP="ALLIANT TECHSYSTEMS INC.",DN="2",CHK=429346,FOLIO='14',FILE='DISK014:[03STP4.03STP1624]KI1624A.;15',USER='CKASTNE',CD='14-JUN-2003;14:04' -->
<UL>
<UL>
</UL>
</UL>
<!-- THIS IS THE END OF A COMPOSITION COMPONENT -->

<P><FONT SIZE=2><A
NAME="page_kk1624_1_15"> </A> </FONT></P>

<!-- TOC_END -->
<UL>
<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;With
respect to any Environmental Claim that is not subject to Alliant's obligation to initiate and administer a Government Responsibility Demand under Article&nbsp;VI
of this Environmental Agreement, a Party may seek reimbursement of an Environmental Claim beginning on the first business day of January, April, July or September of each year following the Closing or
as the Parties shall otherwise agree in writing. </FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;The
Reimbursement Request shall identify or include the following as appropriate: (i)&nbsp;each Area of Environmental Concern to which the Reimbursement Request
relates; (ii)&nbsp;any Enforcement Notice to which the Reimbursement Request relates; (iii) the Work Plan or Submission, if any, to which the Environmental Indemnification Claim or Reimbursement
Request relates; (iv)&nbsp;the name of the contractor, consultant or other third party which received or will receive the monies related to the Reimbursement Request; (v)&nbsp;copies of all
invoices (or other written requests for or evidence of payment) relating to the Reimbursement Request; (vi)&nbsp;a description of the work performed in connection with the Reimbursement Request;
(vii)&nbsp;copies of any judgment, order, agreement, settlement or other document reflecting the resolution of a Third-Party Claim for which the Reimbursement Request is made; or (viii)&nbsp;any
other factual basis for the Reimbursement Request. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;Any
Party making a Reimbursement Request shall supply any non-privileged information or access to a HAC Facility reasonably requested by the other Party in order to
investigate the Reimbursement Request. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;Within
twenty (20) days of receiving a Reimbursement Request, a Party shall provide to the other Party a written response to the Reimbursement Request. Together with the
response, the Party shall pay the undisputed amount of any Reimbursement Request. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;The
Parties shall confer in good faith to resolve any dispute with respect to a Reimbursement Request. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;In
the event a Party disputes a Reimbursement Request and the Parties, after conferring pursuant to Section 9.4(e) of this Environmental Agreement, are unable to resolve
the dispute within ninety (90) days after delivery of the Reimbursement Request, either Party may initiate the dispute resolution procedure established by Article&nbsp;XIV of the Principal
Agreement. </FONT></P>

</UL>
<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="kk1624_article_ten"> </A>
<A NAME="toc_kk1624_1"> </A>
<BR></FONT><FONT SIZE=2><B>ARTICLE TEN    <BR>    </B></FONT></P>

<P><FONT SIZE=2>10.</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Remedial Actions Under this Agreement.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Management of Remedial Actions.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Except with respect to the Kenvil Facility and the Clearwater Facility, all
material Remedial Actions at a HAC Facility subject or potentially subject to an Environmental Indemnification Claim under this Environmental Agreement shall be subject to the following requirements: </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;At
the Closing, Hercules shall designate a representative to receive information and consult with Alliant concerning Remedial Actions to be conducted by Alliant at the
HAC Facilities (the "</FONT><FONT SIZE=2><I>Hercules Environmental Representative</I></FONT><FONT SIZE=2>"). From time to time, Hercules may designate a substitute Hercules Environmental
Representative and alternate Hercules Environmental Representatives to serve if the primary Environmental Representative is unavailable. Alliant shall make its environmental personnel with
responsibility for addressing Environmental Conditions at a HAC Facility reasonably available to the Hercules Environmental Representative to discuss Environmental Conditions at the HAC Facility that
require or may require the performance of Remedial Actions subject to this Environmental Agreement. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;If
requested by the Hercules Environmental Representative, Alliant shall provide to the Hercules Environmental Representative reasonable access to the HAC Facilities and
copies of non- </FONT></P>

</UL>
<P ALIGN="CENTER"><FONT SIZE=2>15</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=1,SEQ=20,EFW="2112669",CP="ALLIANT TECHSYSTEMS INC.",DN="2",CHK=714117,FOLIO='15',FILE='DISK014:[03STP4.03STP1624]KK1624A.;13',USER='CKASTNE',CD='14-JUN-2003;14:04' -->
<A NAME="page_kk1624_1_16"> </A>
<UL>
<BR>

<P><FONT SIZE=2>privileged
information reasonably necessary to evaluate the Remedial Actions to be taken with respect to a HAC Facility and the selection of consultants and contractors to implement such Remedial
Activities, including but not limited to reports, analytical data, correspondence, directives, orders, documents submitted by Alliant to, or received by Alliant from, any applicable Environmental
Authority in connection with a Remedial Action, and other non-privileged documents created or received by or on behalf of Alliant in connection with the Remedial Action. Alliant shall provide to the
Hercules Environmental Representative reasonable prior notice of the initiation of any material Remedial Action and an opportunity to observe all such Remedial Actions performed. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;Alliant
shall afford the Hercules Environmental Representatives a reasonable opportunity to confer with consultants and contractors retained to perform Remedial Actions. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;Upon
Hercules' request, Alliant shall provide to the Hercules Facility Representative a copy of any work plan describing how a Remedial Action shall be conducted
("</FONT><FONT SIZE=2><I>Work Plan</I></FONT><FONT SIZE=2>") or any submission to be made to an Environmental Authority in connection with any Remedial Action
("</FONT><FONT SIZE=2><I>Submission</I></FONT><FONT SIZE=2>") as long as is reasonably practicable before the date that the Work Plan is scheduled to be implemented or the Submission is required to
be submitted to any Environmental Authority, provided that Alliant shall have no obligation to provide drafts of such Work Plans and Submissions. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;In
the event that the Hercules Environmental Representative provides comments to Alliant with respect to the performance of any Remedial Action, including but not
limited to, the contents of any Work Plan or Submission, the Parties shall diligently confer in good faith to attempt to reach agreement on the subject matter of Hercules' comments. In the event
agreement cannot be reached by the Hercules Environmental Representative and the Alliant personnel with responsibility for the matter, either Party may demand that any issue with respect to the
Remedial Action be submitted to the Environmental Review Committee by written notice to each member of the Environmental Review Committee. Any such demand shall include a concise written statement of
the issue to be considered by the Environmental Review Committee. The members of the Environmental Review Committee shall personally confer with respect to this issue as soon as is reasonably
practicable, but in any event within thirty (30) days of receipt of the written demand. Decisions of the Environmental Review Committee shall require the agreement of both Parties and shall be final.
If the Environmental Review Committee is unable to reach a decision, either Party may submit the issue for dispute resolution in accordance with Article&nbsp;XIV of the Principal Agreement, provided
however, that if Alliant is unable, after good faith efforts, to obtain from the Environmental Authority an extension of the deadline, if any, to make a Submission or to implement a Work Plan or other
Remedial Action and the issue is not resolved pursuant to this Section 10.1(e) by the expiration of such deadline, Alliant shall determine the action to be taken without prejudice to all rights of
Hercules to contend that such action is not in accordance with this Environmental Agreement. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;Nothing
in this Section 10.1 shall limit the right of Alliant to propose or implement a Remedial Action: (i)&nbsp;for which it shall not seek indemnification in
accordance with this Environmental Agreement; or (ii)&nbsp;to take an emergent action that is necessary to address an imminent threat to human health or the Environment. </FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Performance of Remedial Action Under this Agreement.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Any Remedial Action, or any part thereof, subject or
potentially subject to an Environmental Indemnification Claim under this Environmental Agreement, shall be performed in a workmanlike manner, consistent with all applicable professional standards and
in a cost effective manner not exceeding industry cost standards for comparable work. Without limiting the generality of the foregoing, the Party performing such a Remedial Action shall: (i)&nbsp;be
responsible for the proper and lawful disposition of all wastes, including </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>16</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=2,SEQ=21,EFW="2112669",CP="ALLIANT TECHSYSTEMS INC.",DN="2",CHK=313551,FOLIO='16',FILE='DISK014:[03STP4.03STP1624]KK1624A.;13',USER='CKASTNE',CD='14-JUN-2003;14:04' -->
<A NAME="page_kk1624_1_17"> </A>

<P><FONT SIZE=2>but
not limited to, soils and groundwater, generated in any Remedial Action; and (ii)&nbsp;obtain, maintain in full force and effect, and achieve material compliance with all Environmental Permits
that are necessary for the performance of any Remedial Actions. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Maintenance of Engineering or Institutional Controls.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;As long as Alliant owns or operates a HAC Facility,
Alliant shall properly maintain any Institutional Controls or Engineering Controls installed or employed at a HAC Facility in connection with any Remedial Action undertaken by Alliant, subject or
potentially subject to an Environmental Indemnification Claim under this Environmental Agreement. The out-of-pocket fees, costs and expenses incurred by Alliant pursuant to this Section 10.3 shall be
subject to Alliant's right of indemnification pursuant to Section 8.1(a) of this Environmental Agreement. The foregoing notwithstanding, Alliant may remove or discontinue any Institutional or
Engineering Controls imposed on the HAC Facility at any time in its sole discretion, provided that Alliant at its sole expense complies with any conditions imposed by the Environmental Authority or
required in compliance with Environmental Laws in connection with such removal or discontinuance (including the performance of any additional Remedial Action). </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="kk1624_article_eleven"> </A>
<A NAME="toc_kk1624_2"> </A>
<BR></FONT><FONT SIZE=2><B>ARTICLE ELEVEN    <BR>    </B></FONT></P>

<P><FONT SIZE=2>11.</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Alliant New Jersey Facilities and ISRA.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;As to any Alliant New Jersey Facility as to which Alliant shall not have achieved
Compliance with ISRA prior to the Closing, Alliant shall: (i)&nbsp;take all actions that are necessary to achieve Compliance with ISRA, (ii)&nbsp;establish and maintain in full force and effect
any remediation funding source required under ISRA; and (iii) pay all fees, costs and expenses necessary or required to achieve Compliance with ISRA. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="kk1624_article_twelve"> </A>
<A NAME="toc_kk1624_3"> </A>
<BR></FONT><FONT SIZE=2><B>ARTICLE TWELVE    <BR>    </B></FONT></P>

<P><FONT SIZE=2>12.</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Kenvil and Clearwater Facilities.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.1</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Leases for Kenvil and Clearwater Facilities.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;The Parties specifically acknowledge that, in connection with
the Transaction, Alliant shall execute leases for the Kenvil and Clearwater Facilities. The term of such leases shall be one year. Alliant shall have options to extend the leases for up to five
additional one year terms. Should Alliant elect to extend its lease at the Kenvil Facility into a fourth year, Hercules and Alliant shall negotiate in good faith concerning a method by which Alliant
will share in Environmental Claims incurred by Hercules arising from Releases, if any, occurring at the Kenvil Facility during Alliant's entire tenancy. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.2</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Compliance with ISRA&#151;Kenvil Facility.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;ISRA Compliance Matter Arising from this Transaction.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;In connection with the ISRA Compliance Matter arising
from the Transaction with respect to the Kenvil Facility, Hercules shall: (i)&nbsp;take all actions required to achieve Compliance with ISRA and the Remediation Agreement; (ii)&nbsp;establish and
maintain in full force and effect any remediation funding source required under ISRA or the Remediation Agreement; and (iii) pay all fees, costs and expenses necessary or required to achieve
Compliance with ISRA or the Remediation Agreement. Notwithstanding any provision of this Agreement to the contrary, Hercules shall have the sole and exclusive right and authority to propose, negotiate
with the NJDEP concerning, and implement Remedial Actions at the Kenvil Facility required to achieve Compliance with ISRA or the Remediation Agreement, provided that Hercules shall implement Remedial
Actions at such times, in such a manner and with such advance notice to Alliant as not to unreasonably interfere with Alliant's day to day operations at the Kenvil Facility. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Future ISRA Compliance.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;In the event Alliant takes any action during its occupancy of the Kenvil Facility
that requires the initiation of an ISRA Compliance Matter, including but not limited to, any closing of operations (as such term is defined under ISRA) by Alliant at the Kenvil </FONT></P>

</UL>
<P ALIGN="CENTER"><FONT SIZE=2>17</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=3,SEQ=22,EFW="2112669",CP="ALLIANT TECHSYSTEMS INC.",DN="2",CHK=394693,FOLIO='17',FILE='DISK014:[03STP4.03STP1624]KK1624A.;13',USER='CKASTNE',CD='14-JUN-2003;14:04' -->
<A NAME="page_kk1624_1_18"> </A>
<UL>
<BR>

<P><FONT SIZE=2>Facility,
Alliant shall pay all filing fees and other costs of an administrative nature to achieve Compliance with ISRA. Subject to Alliant's obligation to indemnify Hercules pursuant to
Article&nbsp;VIII of this Environmental Agreement for post-Closing Releases, as such obligation shall be modified by any agreement of the Parties described in Section 12.1 of this Environmental
Agreement, Hercules shall take all actions and pay all other fees, costs and expenses to achieve Compliance with ISRA in connection with such ISRA Compliance Matter. </FONT></P>

</UL>
<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="kk1624_article_thirteen"> </A>
<A NAME="toc_kk1624_4"> </A>
<BR></FONT><FONT SIZE=2><B>ARTICLE THIRTEEN    <BR>    </B></FONT></P>

<P><FONT SIZE=2>13.</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Miscellaneous.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.1</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Exclusive Remedy.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Hercules and Alliant acknowledge and agree that, if the Closing occurs, the
indemnification given by the Parties under this Agreement shall be the Parties' sole and exclusive remedies following Closing, each against the other: (i)&nbsp;with respect to Environmental Claims
or arising out of Environmental Laws relating to: the HAC Business; the ownership, operation, management, use or control of HAC Facilities; Environmental Conditions at the HAC Facilities; the
ownership, operation, management, use or control of Alliant Facilities; Environmental Conditions at the Alliant
Facilities; and Compliance with ISRA; and (ii)&nbsp;with respect to any other subject matter of this Environmental Agreement. The Parties hereby waive and release any other rights, remedies, causes
of action or claims as to which this Environmental Agreement sets forth the exclusive remedy. The foregoing notwithstanding, this Section 13.1 shall not apply to any and all Third-party Claims arising
from or relating to Off-Site Environmental Conditions resulting from the operation of the HAC Business (i)&nbsp;at Federal Land, but only if such Third-Party Claims are first asserted against
Alliant or Hercules after the tenth (10th) anniversary of the Closing; and (ii)&nbsp;at Non-Federal Land, but only if such Third-Party Claims are first asserted against Alliant or Hercules after the
fifth (5th) anniversary of the Closing. Solely as to the claims described in the preceding sentence, each Party shall retain against the other all rights, remedies, causes of action or claims they
have or may have under Environmental Laws or otherwise. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.2</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Third Party Actions.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Either Party may, but shall have no obligation to, institute an action against any
third party, at any time and at its sole expense, with respect to Environmental Claims for which that Party is, or may be, entitled to indemnification pursuant to this Environmental Agreement,
provided however, that with respect to all such Environmental Claims as to which Alliant is seeking recovery or reimbursement as a Federal Environmental Responsibility pursuant to Article&nbsp;VI of
this Environmental Agreement, Hercules shall not institute any action against the United States without Alliant's prior written consent, which consent shall not be unreasonably withheld. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.3</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Incorporation of Terms of Principal Agreement.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;The
provisions of Articles XIII, XIV, XV of the Principal Agreement are incorporated herein and made a part hereof. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;Except
as specifically set forth in this Environmental Agreement, this Environmental Agreement shall constitute the entire agreement of the Parties with respect to
environmental matters of any kind or nature arising from or relating in any way to the HAC Business, the business of Alliant or the ownership, operation, use, management or control of the HAC
Facilities or the Alliant Facilities. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;In
the event of any conflict between the terms and conditions of this Environmental Agreement and the Principal Agreement, this Environmental Agreement will control with
respect to environmental matters. </FONT></P>

</UL>
<P ALIGN="CENTER"><FONT SIZE=2>18</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=4,SEQ=23,EFW="2112669",CP="ALLIANT TECHSYSTEMS INC.",DN="2",CHK=905865,FOLIO='18',FILE='DISK014:[03STP4.03STP1624]KK1624A.;13',USER='CKASTNE',CD='14-JUN-2003;14:04' -->
<UL>
<BR>
</UL>
<!-- THIS IS THE END OF A COMPOSITION COMPONENT -->

<P><FONT SIZE=2><A
NAME="page_km1624_1_19"> </A> </FONT> <FONT SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.4</FONT><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Schedules to Environmental Agreement.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;The Parties acknowledge and agree that they are entering into this
Environmental Agreement prior to the preparation and delivery of the Schedules referenced herein and that these Schedules shall be delivered prior to the Closing. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.5</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Notices</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
notices, demands and other communications given by or on behalf of a Party pursuant to this Environmental Agreement shall be given in accordance with the Principal Agreement, except
that such notices shall be addressed to the Parties as follows: </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
to Alliant: </FONT></P>

<UL>
<UL>

<P><FONT SIZE=2>Vice
President of Administration<BR>
Alliant Techsystems Inc.<BR>
600 Second Street, N.W .<BR>
Hopkins, MN 55343-8384 </FONT></P>

</UL>
</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;With
a copy to: </FONT></P>

<UL>
<UL>

<P><FONT SIZE=2>General
Counsel<BR>
Alliant Techsystems Inc.<BR>
600 Second Street, N.W.<BR>
Hopkins, MN 55343-8384 </FONT></P>

</UL>
</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
to Hercules: </FONT></P>

<UL>
<UL>

<P><FONT SIZE=2>Vice
President of Health and Environment<BR>
Hercules Incorporated<BR>
Hercules Plaza<BR>
Wilmington, DE 19894 </FONT></P>

</UL>
</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;With
a copy to: </FONT></P>

<UL>
<UL>

<P><FONT SIZE=2>General
Counsel<BR>
Hercules Incorporated<BR>
Hercules Plaza<BR>
Wilmington, DE 19894 </FONT></P>

</UL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2>19</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=1,SEQ=24,EFW="2112669",CP="ALLIANT TECHSYSTEMS INC.",DN="2",CHK=705568,FOLIO='19',FILE='DISK014:[03STP4.03STP1624]KM1624A.;18',USER='ALOEW',CD='17-JUN-2003;01:39' -->
<A NAME="page_km1624_1_20"> </A>
<UL>
<UL>
</UL>
</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN
WITNESS WHEREOF, each Party has caused this Agreement to be executed by its duly authorized officer on its behalf as of the date first above written. </FONT></P>

<!-- User-specified TAGGED TABLE -->
<TABLE WIDTH="79%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="TOP">
<TD COLSPAN=4><FONT SIZE=2>Attested:</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=4><FONT SIZE=2>HERCULES INCORPORATED</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="5%"><FONT SIZE=2><BR>
By:</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2><BR>
&nbsp;&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2><BR>
By:</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2><BR>
/s/&nbsp;&nbsp;</FONT><FONT SIZE=2>R. KEITH ELLIOTT</FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=2><FONT SIZE=2><BR>
Name and Title:</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="31%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=2><FONT SIZE=2><BR>
Name and Title:</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="31%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="5%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="31%"><HR NOSHADE></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="31%"><HR NOSHADE></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=4><FONT SIZE=2><BR>
Attested:</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=4><FONT SIZE=2><BR>
ALLIANT TECHSYSTEMS INC.</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="5%"><FONT SIZE=2><BR>
By:</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2><BR>
&nbsp;&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2><BR>
By:</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2><BR>
/s/&nbsp;&nbsp;</FONT><FONT SIZE=2>DONALD E. WILLIS</FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=2><FONT SIZE=2><BR>
Name and Title:</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="31%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=2><FONT SIZE=2><BR>
Name and Title:</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="31%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="5%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="31%"><HR NOSHADE></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="31%"><HR NOSHADE></TD>
</TR>
</TABLE>
<!-- end of user-specified TAGGED TABLE -->

<P ALIGN="CENTER"><FONT SIZE=2>20</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=2,SEQ=25,EFW="2112669",CP="ALLIANT TECHSYSTEMS INC.",DN="2",CHK=6570,FOLIO='20',FILE='DISK014:[03STP4.03STP1624]KM1624A.;18',USER='ALOEW',CD='17-JUN-2003;01:39' -->
<!-- THIS IS THE END OF A COMPOSITION COMPONENT -->
<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="page_ko1624_1_1"> </A> </FONT></P>

<!-- TOC_END -->
<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="ko1624_schedule_ea_4.1(a)(1)_permits"> </A>
<A NAME="toc_ko1624_1"> </A>
<BR></FONT><FONT SIZE=2>Schedule EA 4.1(a)(1)    <BR>    <BR>    </FONT><FONT SIZE=2><B>PERMITS    <BR>    </B></FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except as set forth in this Schedule EA 4.1(a)(1)<SUP>1</SUP>, to the Knowledge of Hercules, GES and HDES, all Environmental Permits necessary for the
operation of the HAC Facilities and the HAC Business, as they have been operated within the two (2)&nbsp;years prior to Closing, have been issued, and all such Environmental Permits are in full
force and effect, and all appeal periods for such permits have expired. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Open
Burning Permit for disposal of rubbish, garbage or trade waste, or buildings or structures, or waste explosives materials. Permit application was not submitted to the NJDEP within
the required time frames. Previous permit expired February&nbsp;20,1994 and has not been renewed to date. Permit application process is now underway. </FONT></P>

<P><FONT SIZE=2><B><I>ABL  </I></B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Renewed NPDES and stormwater permit: The NPDES portion of the application has been completed and submitted. The stormwater portion of the application has been
submitted with incomplete data. Collection of composite stormwater samples are still required. It is expected to be complete by spring 1995. State has agreed to administratively continue the existing
water pollution control permit (which covers only one discharge). Additional outfalls were added in the updated permit application. West Virginia is now requesting a revised permit application based
on further consolidation of outfalls and the facility changes since the application was submitted. The request came from a January&nbsp;1995 wastewater inspection. No immediate date for submittal
was requested by the State. </FONT></P>

<P><FONT SIZE=2><B><I>Kenvil  </I></B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The facility's NPDES permit expired in 1991. The facility submitted a permit renewal application in a timely manner that year. The State has not yet acted on
issuing the new permit. However, since the permit application was filed in a timely manner, the facility is covered by its existing (old) permit. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stormwater
discharges from the facility were included in the 1991 NPDES permit application. The current stormwater discharge regulations require submittal of a permit application for
stormwater discharge, except if covered by an existing permit (or application). Since this was the case, the facility does not currently have a stormwater permit, but it will be covered when the State
issues the facility's new permit. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Water
Allocation Permit expired January&nbsp;1993. State has granted blanket extension to all permit holders. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Air
Permits: Pursuant to an Administrative Consent Order (ACO) dated April 1993, Hercules is obligated to submit administratively complete permit/certificate applications to the NJDEP
for all new or altered regulated operations at the Kenvil facility. These applications have not yet been submitted; however, Hercules is in the process of completing the applications. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Open
Burning Permit for disposal of rubbish, garbage or trade waste, or buildings or structures, or waste explosives materials; Permit application was not submitted to the NJDEP within
the required time frames. Previous permit expired February&nbsp;20, 1994 and has not been renewed to date. Permit application process is now underway. </FONT></P>

<P><FONT SIZE=2><B><I>McGregor  </I></B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The State has issued the new wastewater discharge permit. While Texas has their own wastewater permitting program, they do not have authority to implement the
federal NPDES permit program. McGregor filed an application with EPA in a timely manner. However, EPA has not acted upon it. The </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>1</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=1,SEQ=26,EFW="2112669",CP="ALLIANT TECHSYSTEMS INC.",DN="2",CHK=925302,FOLIO='1',FILE='DISK014:[03STP4.03STP1624]KO1624A.;8',USER='CKASTNE',CD='14-JUN-2003;14:04' -->
<A NAME="page_ko1624_1_2"> </A>
<BR>

<P><FONT SIZE=2>EPA
has replied that the permit application was administratively complete, and the old permit appears to be in administrative continuance until the application is acted upon. The expected permitting
date is unknown at this time; however, closure of operations at McGregor (operations moving to ABL) is expected prior to permit issuance. </FONT></P>

<HR NOSHADE ALIGN="LEFT" WIDTH="120">

<P><FONT SIZE=2><SUP>interim</SUP>
Status for RCRA Subpart X (open burning) is not listed here as a permit which is not issued or not in full force, as the requirements have been met by submission of the
applications. The McGregor, TX facility is the only facility with a Subpart X permit in force (issued by Texas and approved by EPA). </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>2</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=2,SEQ=27,EFW="2112669",CP="ALLIANT TECHSYSTEMS INC.",DN="2",CHK=68315,FOLIO='2',FILE='DISK014:[03STP4.03STP1624]KO1624A.;8',USER='CKASTNE',CD='14-JUN-2003;14:04' -->
<A NAME="page_ko1624_1_3"> </A>
<P ALIGN="CENTER"><FONT SIZE=2>Schedule
EA 4.1(a)(2) </FONT></P>

<P><FONT SIZE=2>Except
as set forth in this Schedule EA 4.1(a)(2), to the Knowledge of Hercules, GES and HDES, Hercules, GES and HDES are in compliance in all material respects with the Environmental Permits issued
for the operation of the HAC Facilities and the HAC Business. </FONT></P>

<P><FONT SIZE=2><B><I>ABL  </I></B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The sewage treatment plant has been experiencing periodic violations (associated with seasonal precipitation) of flow limitations due to infiltration of
precipitation into the facility's old sewer lines. A study of the sewer lines is planned, and a new treatment plant with additional capacity for flow equalization has been funded by the Navy.
Construction is expected in the next year. </FONT></P>

<P><FONT SIZE=2><B><I>Kenvil  </I></B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;An Administrative Consent Order was entered into between Hercules and the NJDEP concerning the VOC emissions at the Kenvil facility. The ACO set forth a
compliance schedule for controlling or eliminating the emissions of certain equipment at the plant in order to come into compliance with the New Jersey Air Pollution Control Act. The ACO also required
that Hercules administratively submit permit/certificate applications to the NJDEP for all new or altered regulated operations at the Kenvil plant. Pursuant to a letter from the NJDEP dated
March&nbsp;9, 1995, steps to comply with the terms of the ACO are currently underway. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Additionally,
other air emissions permit violations have been cited by the NJDEP based on a November&nbsp;1, 1994 NJDEP site inspection. Hercules is reviewing with the NJDEP the status
of these citations. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
lab certification for drinking water analysis is pending revocation due to failure to submit quality assurance data as requested by the NJDEP. Issue will be resolved by the next
quality assurance data request from the NJDEP. </FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Administrative
Consent Order dated April&nbsp;29, 1993.<BR>
Parties: New Jersey Department of Environmental Protection and Hercules.<BR>
See EA4.1(a)(2)&nbsp;for background information.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>New
Jersey DEP claim for CY 1993 wastewater permit violations. </FONT>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Fine&#151;$115,125.
Court has not yet approved the settlement; therefore, fine may not be paid prior to closing. </FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Corrective
actions/schedule required (one item is scheduled to be completed after closing).
<BR><BR></FONT></DD></DL>
</DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>See
also EA4.1(a)(1)&nbsp;and 4.1(a)(2). </FONT></DD></DL>
</UL>

<P><FONT SIZE=2><B><I>Radford  </I></B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A Consent Order has been developed with the State of Virginia extending the date for compliance with the whole effluent toxicity requirements in Radford's new
NPDES permit. Compliance is required by 12/31/97. This is not considered a violation but is mentioned here for information. See Consent Special Order dated August&nbsp;12, 1986, as amended, in
Section 4.1(b)(i). </FONT></P>

<P><FONT SIZE=2><B><I>Sunflower  </I></B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The sewage treatment plant at Sunflower has experienced recent chronic fecal coliform limit violations of its NPDES permit. Studies are being conducted with Army
assistance to determine the cause, and the facility is installing a disinfection system to eliminate violations in the interim. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>3</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=3,SEQ=28,EFW="2112669",CP="ALLIANT TECHSYSTEMS INC.",DN="2",CHK=625352,FOLIO='3',FILE='DISK014:[03STP4.03STP1624]KO1624A.;8',USER='CKASTNE',CD='14-JUN-2003;14:04' -->
<A NAME="page_ko1624_1_4"> </A>
<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="ko1624_schedule_ea_4.1(a)(3)"> </A>
<A NAME="toc_ko1624_2"> </A>
<BR></FONT><FONT SIZE=2>Schedule EA 4.1(a)(3)    <BR></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except
as set forth in this Schedule EA 4.1(a)(3), to the Knowledge of Hercules, GES and HDES, there is no reason that the Environmental Permits issued to Hercules, GES and HDES cannot
be transferred to Alliant in the Ordinary Course of Business without undue cost or delay to Alliant. </FONT></P>

<P><FONT SIZE=2><B><I>ABL  </I></B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The RCRA hazardous waste management permit transfer to Alliant is being delayed due to complications with the ability of the Navy to sign the permit transfer as
the owner (indicating Alliant as the operator) until the contract has been novated. This may cause a delay of several months. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>4</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=4,SEQ=29,EFW="2112669",CP="ALLIANT TECHSYSTEMS INC.",DN="2",CHK=242049,FOLIO='4',FILE='DISK014:[03STP4.03STP1624]KO1624A.;8',USER='CKASTNE',CD='14-JUN-2003;14:04' -->
<BR>
<!-- THIS IS THE END OF A COMPOSITION COMPONENT -->
<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="page_kq1624_1_5"> </A> </FONT></P>

<!-- TOC_END -->
<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="kq1624_schedule_ea_4.1(b)(i)_existing_claims"> </A>
<A NAME="toc_kq1624_1"> </A>
<BR></FONT><FONT SIZE=2>Schedule EA 4.1(b)(i)    <BR>    <BR>    </FONT><FONT SIZE=2><B>EXISTING CLAIMS    <BR>    </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except as set forth in this Schedule EA 4.1(b)(i)&nbsp;and except for Environmental Claims that have been fully and finally resolved, to the Knowledge of
Hercules, GES and HDES, no Environmental Claim has been asserted or threatened: </FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(i)</FONT></DT><DD><FONT SIZE=2>with
respect to any alleged violation of any Environmental Laws applicable to the HAC Facilities and the HAC Business or the terms and conditions of Environmental Permits necessary
for the operation of the HAC Facilities and the HAC Business. </FONT></DD></DL>
</UL>

<P><FONT SIZE=2><B><I>ABL  </I></B></FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Consent
Order CO-R-27-91-20 dated June&nbsp;25, 1991.<BR>
Parties: West Virginia Air Pollution Control Commission and Allegany Ballistics Laboratory. </FONT></DD></DL>
</UL>
<UL>
<UL>

<P><FONT SIZE=2>Fabrication
plant emits methylene chloride, trichloroethylene and ethylene dichloride into the air. Consent Order is a Voluntary Emissions Reduction Plan for installation of equipment to control
emissions of methylene chloride and trichloroethylene and reduce ethylene dichloride emissions. Requirements completed pending modification of the Consent Order by the State. </FONT></P>

</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Pending
Consent Order with the West Virginia Office of Air Quality for operations at the explosive waste burning grounds. </FONT></DD></DL>
</UL>

<P><FONT SIZE=2><B><I>Bacchus  </I></B></FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Stipulation
and Consent Order No. 8606396 dated August&nbsp;16, 1988.<BR>
Parties: Utah Solid and Hazardous Waste Committee and Hercules. </FONT></DD></DL>
<UL>

<P><FONT SIZE=2>Hercules
was required to initiate a RCRA Facility Investigation and to develop a comprehensive plan for corrective action at the site. </FONT></P>

</UL>
</UL>

<P><FONT SIZE=2><B><I>Kenvil  </I></B></FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Administrative
Consent Order dated November&nbsp;9, 1988.<BR>
Parties: New Jersey Department of Environmental Protection and Hercules. </FONT></DD></DL>
<UL>

<P><FONT SIZE=2>Closure
of the burning ground. Hercules has completed all requirements under this ACO; however, we have not yet received written notice from the NJDEP that would allow ACO to be formally closed out.
$500,000 Letter of Credit in place. </FONT></P>

</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Administrative
Consent Order dated April&nbsp;29, 1993.<BR>
Parties: New Jersey Department of Environmental Protection and Hercules.<BR>
See EA 4.1(a)(2)&nbsp;for background information.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>New
Jersey DEP claim for CY 1993 wastewater permit violations. </FONT>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Fine&#151;$115,125.
Court has not yet approved the settlement; therefore, fine may not be paid prior to closing. </FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Corrective
actions/schedule required (one item is scheduled to be completed after closing). </FONT></DD></DL>
</DD></DL>
</UL>

<P><FONT SIZE=2><B><I>Radford  </I></B></FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Consent
Agreement No. RCRA-III-240 dated March&nbsp;2, 1992.<BR>
Parties: U.S. EPA and Hercules. </FONT></DD></DL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2>5</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=1,SEQ=30,EFW="2112669",CP="ALLIANT TECHSYSTEMS INC.",DN="2",CHK=382410,FOLIO='5',FILE='DISK014:[03STP4.03STP1624]KQ1624A.;7',USER='CKASTNE',CD='14-JUN-2003;14:04' -->
<A NAME="page_kq1624_1_6"> </A>
<UL>
<UL>
</UL>
</UL>
<UL>
<UL>

<P><FONT SIZE=2>Incinerator
Operation Permit for burning lead-bearing wastes. Corrective actions completed by Hercules. EPA agreed, by letter dated February&nbsp;25, 1992, to modify permit to include the Army as a
co-permittee. This modification process is underway. </FONT></P>

</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Enforcement
Order dated June&nbsp;22, 1993.<BR>
Parties: Virginia Department of Environmental Quality, Department of the Army, and Hercules. </FONT></DD></DL>

<UL>

<P><FONT SIZE=2>Hercules
and the Army developed a groundwater monitoring program for the incinerator spray pond surface impoundment. Awaiting DEQ approval of the closure plan to implement program. </FONT></P>

</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Consent
Special Order dated August&nbsp;12, 1986; amended November&nbsp;5, 1992; further amended July&nbsp;11, 1994.<BR>
Parties: Virginia Department of Environmental Quality, Radford Army Ammunition Plant, and Hercules. </FONT></DD></DL>
</UL>
<UL>
<UL>

<P><FONT SIZE=2>Consent
Order is attached as a condition to the Wastewater Discharge Permit and includes corrective action requirements and interim effluent limitations for the discharge of ammonia and nitrate.
Amendment issued in July&nbsp;1994 provides an extension of time for meeting the whole effluent toxicity limitations. </FONT></P>

</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Consent
Agreement and Order dated May&nbsp;11, 1992.<BR>
Parties: Department of the Army and Virginia Department of Environmental Quality. </FONT></DD></DL>
</UL>
<UL>
<UL>

<P><FONT SIZE=2>Construction
of new nitrocellulose pollution abatement equipment.<BR>
Construction in progress </FONT></P>

</UL>
</UL>

<P><FONT SIZE=2><B><I>Sunflower  </I></B></FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Consent
Order No. 90-E-43 dated February&nbsp;1991.<BR>
Parties: Kansas Department of Health and Environment and the Department of the Army. </FONT></DD></DL>
</UL>
<UL>
<UL>

<P><FONT SIZE=2>Corrective
actions to ensure compliance with NPDES permit. </FONT></P>

</UL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2>6</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=2,SEQ=31,EFW="2112669",CP="ALLIANT TECHSYSTEMS INC.",DN="2",CHK=571622,FOLIO='6',FILE='DISK014:[03STP4.03STP1624]KQ1624A.;7',USER='CKASTNE',CD='14-JUN-2003;14:04' -->
<A NAME="page_kq1624_1_7"> </A>
<UL>
<UL>
</UL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="kq1624_schedule_ea_4.1_(b)_(ii)"> </A>
<A NAME="toc_kq1624_2"> </A>
<BR></FONT><FONT SIZE=2>Schedule EA 4.1 (b)&nbsp;(ii)    <BR></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except
as set forth in this Schedule EA 4.1 (b)(ii)&nbsp;and except for Environmental Claims that have been fully and finally resolved, to the Knowledge of Hercules, GES and HDES, no
Environmental Claim has been asserted or threatened: </FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(ii)</FONT></DT><DD><FONT SIZE=2>with
respect to any alleged failure to have any Environmental Permits necessary for the operation of the HAC Facilities or the HAC Business: </FONT></DD></DL>
</UL>

<P><FONT SIZE=2><B><I>Kenvil  </I></B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;See EA 4.1(a)(1)&nbsp;to Kenvil permit background.. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>7</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=3,SEQ=32,EFW="2112669",CP="ALLIANT TECHSYSTEMS INC.",DN="2",CHK=601541,FOLIO='7',FILE='DISK014:[03STP4.03STP1624]KQ1624A.;7',USER='CKASTNE',CD='14-JUN-2003;14:04' -->
<A NAME="page_kq1624_1_8"> </A>
<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="kq1624_schedule_ea_4.1_(b)(iii)_1"> </A>
<A NAME="toc_kq1624_3"> </A>
<BR></FONT><FONT SIZE=2>Schedule EA 4.1 (b)(iii)    <BR></FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except
as set forth in this Schedule EA 4.1 (b)(iii)&nbsp;and except for Environmental Claims that have been fully and finally resolved, to the Knowledge of Hercules, GES and HDES, no
Environmental Claim has been asserted or threatened: </FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(iii)</FONT></DT><DD><FONT SIZE=2>with
respect to any generation, treatment, storage, recycling, transportation, disposal or Release of any Hazardous Substance generated in connection with the HAC Facilities or the
HAC Business: </FONT></DD></DL>
</UL>
<BR>

<P><FONT SIZE=2><B><I>ABL  </I></B></FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Limestone
Road Superfund site; filed May&nbsp;1994<BR>
Shipment of waste from ABL to Limestone Road site. Volume and nature of waste must still be determined. </FONT></DD></DL>
</UL>
<UL>
<UL>

<P><FONT SIZE=2>Hercules'
contribution to settlement is being sought by the parties who have performed the RI/FS and the capping and fencing at the site. Approximately $4 Million is expected to be spent through
completion of the RI/FS. Hercules has arranged for the disposal of 16 drums identified as ours during the capping work. Contents of document repository in Philadelphia will be reviewed. </FONT></P>

</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Archem
Company site, last operated by Thomas Chelsea Chemical Company, USA, Houston, TX </FONT></DD></DL>
</UL>
<UL>
<UL>

<P><FONT SIZE=2>ABL
received a 104(e)&nbsp;information request in August&nbsp;1993. Hercules' response indicated Archem had been a supplier of product to both our ABL and Bacchus facilities. It appears the
majority of material supplied to Hercules was K-7 (a curing agent). </FONT></P>

<P><FONT SIZE=2>On
January&nbsp;18, 1994, Hercules received a request from the Texas Water Commission (TWC) to participate in a removal action at the site. Past costs incurred by the TWC are $721,673. Hercules is
preparing a response denying responsibility as a potentially responsible party and declining to participate in the removal action. </FONT></P>

</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Municipal
Industrial Disposal Company site in Elizabeth Township, Allegheny County, PA </FONT></DD></DL>
</UL>
<UL>
<UL>

<P><FONT SIZE=2>Hercules
received a &sect;104(e)&nbsp;information request in May&nbsp;1993. Our investigation revealed that in September&nbsp;1980 thirty (30) drums of inorganic waste sludge were shipped
through a transporter who listed MIDC as the disposal location. However, no disposal certificate was ever received to confirm that the waste did indeed get disposed of at MIDC. Further, the contract
with ABL and the transporter
listed another disposal location as the disposal site. Finally, the transporter was later arrested by the authorities for disposing of wastes at locations not on the manifests. Therefore, Hercules has
no documentation or information to support waste actually being disposed of at MIDC. </FONT></P>

</UL>
</UL>

<P><FONT SIZE=2><B><I>Bacchus  </I></B></FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Hansen
Container Site, Grand Junction, Mesa, CO; filed January&nbsp;1995 </FONT></DD></DL>
<UL>

<P><FONT SIZE=2>CERCLA
Section 104(e)&nbsp;request for information received from the EPA, Region VIII. Bacchus Works allegedly sold empty drums for scrap in the 60s and 70s, and gave Hansen drums in 1989 and 1990,
which were disposed of at the Hansen Container site. EPA is conducting clean-up activities and is seeking information as to the number and contents of drums. </FONT></P>

</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Archem
Company site, last operated by Thomas Chelsea Chemical Co., USA, Houston, TX<BR>
See ABL. </FONT></DD></DL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2>8</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=4,SEQ=33,EFW="2112669",CP="ALLIANT TECHSYSTEMS INC.",DN="2",CHK=315329,FOLIO='8',FILE='DISK014:[03STP4.03STP1624]KQ1624A.;7',USER='CKASTNE',CD='14-JUN-2003;14:04' -->
<A NAME="page_kq1624_1_9"> </A>
<UL>
<UL>
</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Chemical
Commodities Sites, Kansas City and Shawnee, Kansas<BR>
See McGregor. </FONT></DD></DL>
</UL>

<P><FONT SIZE=2><B><I>HDES  </I></B></FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Seaboard
Superfund Site, High Point, NC </FONT></DD></DL>
<UL>

<P><FONT SIZE=2>Unisys,
former owner of HDES facility, has agreed to indemnify HDES for any potential liability associated with the site for activities occurring prior to October&nbsp;1986. Two post-closing
shipments to this site are being investigated. HDES has been asked to join the PRP group. </FONT></P>

</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Peak
Oil Superfund Site, Tampa, FL </FONT></DD></DL>
</UL>
<UL>
<UL>

<P><FONT SIZE=2>HDES
received a 104(e)&nbsp;information request in February&nbsp;1993. Hercules responded with no connection to this entity. Requested indemnity from Unisys, who responded that the claim was
premature. No connection identified. Unisys indemnifying/defending. </FONT></P>

</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Zellwood
Groundwater Contamination Site, Orange County, FL </FONT></DD></DL>
</UL>
<UL>
<UL>

<P><FONT SIZE=2>HDES
received a 104(e)&nbsp;information request in April&nbsp;1992. Hercules responded that no connection for disposal at this site could be found. Unisys agreed to indemnify Hercules unless
otherwise determined. No connection identified. Unisys indemnifying/defending. </FONT></P>

</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Bay
Drums Superfund Site, Brandon, FL (east of Tampa) </FONT></DD></DL>
<UL>

<P><FONT SIZE=2>HDES
received a letter in February&nbsp;1991; responded that no connection existed between HDES and entity. Unisys agreed to defend for pre-closing activities. No connection identified. Unisys
indemnifying/defending. </FONT></P>

</UL>
</UL>

<P><FONT SIZE=2><B><I>Kenvil  </I></B></FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Violation
for 1992 acetone spill by State Police Summons No. MP 92419. Fine of $3,000 dated February&nbsp;24, 1995 received and will be paid by March&nbsp;24, 1995. </FONT></DD></DL>
</UL>

<P><FONT SIZE=2><B><I>McGregor  </I></B></FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Chemical
Commodities Sites, Kansas City and Shawnee, Kansas<BR>
Company acted as broker to purchase raw materials from Bacchus and McGregor facilities. Company abandoned the site. Several drums of materials traced back to Hercules. Hercules took the position that
broker purchased a useful product from Hercules and no arrangement for disposal occurred. </FONT></DD></DL>
</UL>

<P><FONT SIZE=2><B><I>Radford  </I></B></FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Consent
Decree entered on January&nbsp;25, 1995.<BR>
Parties: EPA, Region III, and Hercules </FONT></DD></DL>
</UL>
<UL>
<UL>

<P><FONT SIZE=2>Hercules
auctioned off batteries which ended up at the Bypass 601 Superfund site, Concord, NC. Hercules is a member of the site remediation group engaged in clean-up. Liability calculated based upon
pro-rata volumetric contribution of material to the site. Radford's total contribution over multi-year clean-up plan is estimated to be $22-28,000. </FONT></P>

</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2><I>USEPA v. Hercules</I></FONT><FONT SIZE=2>; filed October 1992. </FONT></DD></DL>
</UL>
<UL>
<UL>

<P><FONT SIZE=2>Alleged
asbestos removal violations. Initial fine was $160,500.<BR>
Settlement negotiations ongoing. Hercules offered to settle for $7,500; EPA offered to settle for $14,000. </FONT></P>

</UL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2>9</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=5,SEQ=34,EFW="2112669",CP="ALLIANT TECHSYSTEMS INC.",DN="2",CHK=389735,FOLIO='9',FILE='DISK014:[03STP4.03STP1624]KQ1624A.;7',USER='CKASTNE',CD='14-JUN-2003;14:04' -->
<A NAME="page_kq1624_1_10"> </A>
<UL>
<UL>
</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2><I>USEPA v. Hercules</I></FONT><FONT SIZE=2>; filed January&nbsp;21, 1993. </FONT></DD></DL>
</UL>
<UL>
<UL>

<P><FONT SIZE=2>Underground
storage tanks. Violations include: (1)&nbsp;release detection requirements ($202,000); (2)&nbsp;improper underground piping ($25,973); and (3)&nbsp;failure to comply with certain
closure requirements ($17,280). Settlement negotiations stalled; parties remain significantly apart. </FONT></P>

</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>McKinney
Tannery site, Salem, VA </FONT></DD></DL>
<UL>

<P><FONT SIZE=2>Hercules
was contacted in late 1992 about its involvement at this site. It was alleged that RAAP gave or sold batteries to Mr.&nbsp;Mike Mentor. RAAP advised Contracting Officer of this situation
and requested indemnification under P.L.&nbsp;85-804 and FAR&nbsp;52.228-7 if any claims were actually brought. No further communication has been received from Mr.&nbsp;Mentor or his counsel. </FONT></P>

</UL>
</UL>

<P><FONT SIZE=2><B><I>Sunflower  </I></B></FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;None. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>10</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=6,SEQ=35,EFW="2112669",CP="ALLIANT TECHSYSTEMS INC.",DN="2",CHK=815607,FOLIO='10',FILE='DISK014:[03STP4.03STP1624]KQ1624A.;7',USER='CKASTNE',CD='14-JUN-2003;14:04' -->
<BR>
<!-- THIS IS THE END OF A COMPOSITION COMPONENT -->
<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="page_ks1624_1_11"> </A> </FONT></P>

<!-- TOC_END -->
<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="ks1624_schedule_ea_4.1(c)_hazardous_substances"> </A>
<A NAME="toc_ks1624_1"> </A>
<BR></FONT><FONT SIZE=2>Schedule EA 4.1(c)    <BR>    <BR>    </FONT><FONT SIZE=2><B>HAZARDOUS SUBSTANCES    <BR>    </B></FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except as set forth in this Schedule&nbsp;EA 4.1(c), to the Knowledge of Hercules, GES and HDES, there are no Hazardous Substances stored at, located on or
disposed of at or from any of the HAC Facilities in material violation of any Environmental Law or which could be required to be remediated under any Environmental Law. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
following list contains references to reports on remedial investigation studies at the facilities where documentation of known or suspected hazardous substances are discussed.
Additionally, notation is made of known releases of hazardous substances which have occurred which may require further investigation or remediation since these studies have been conducted. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
other releases (spills) of Hazardous Substances which may have occurred at the facilities over time are believed to have been appropriately reported to regulatory agencies and
appropriately remediated at that time and are, therefore, not listed here. </FONT></P>

<P><FONT SIZE=2><B><I>ABL  </I></B></FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Draft
Remedial Investigation Report&#151;CH2M Hill; October&nbsp;1992
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Phase
II RCRA Facility Assessment&#151;A. T. Kearney; August&nbsp;18, 1993
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Work
Plan Construction Investigation of Site 7&#151;Beryllium Landfill; April&nbsp;14, 1994
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Draft
Work Plan for the Focused Remedial Investigation/Feasibility Study&nbsp;(RI/FS) at Site&nbsp;1; April&nbsp;1994
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Draft
Work Plan for the RI/FS; May&nbsp;1994
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Acid
spill area near the Plant 1 Boilerhouse. One-time spill occurred in August&nbsp;1992. Approximately 6500 lbs. of diluted sulphuric acid was released. Acid leaked into
neutralization pit. Release is being investigated as a SMWU but no further remediation is anticipated.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Former
ammonium perchlorate wastewater discharge areas (untreated to ground, now stopped). Practice occurred from early 1970s until 1993. No way to quantify amounts that
could have been released. Remediation, if any, will be addressed under CERCLA.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>K044
sludge in aeration basins at sewage treatment plant. Basins built in 1962. Approximately 12,000-15,000 gallons of sludge could be located in west basin; much less
gallonage in east basin. Remediation of basins is planned when demolition of sewage treatment plant occurs. Due to leakage of west basin, this site is being added to the SWMU list for investigation
under CERCLA.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Oil
on ground from compressor houses 252 and 341. Compressor in Building&nbsp;341 has been in operation since early 60s. The period of operation of the compressor in
Building&nbsp;252 is unknown but assumed to be approximately the same time frame as Building&nbsp;341. In 1992 oil/water separators were installed at both buildings. Quantities discharged are
unknown, but very rough estimates calculate approximately 50 gallons per year per building. </FONT></DD></DL>

<UL>

<P><FONT SIZE=2>In
1993 excavation of approximately eight tons of soil from Building&nbsp;252 was removed and landfarmed. Future remedial action, if any, will be handled under the RCRA corrective action pursuant to
CERCLA oversite. </FONT></P>

</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Several
fuel oil tank leaks at Plant 2 boiler house. Discharges may have been ongoing since mid-1960s. No spill has exceeded 30 gallons, but no knowledge of how many spills
may have </FONT></DD></DL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2>11</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=1,SEQ=36,EFW="2112669",CP="ALLIANT TECHSYSTEMS INC.",DN="2",CHK=603476,FOLIO='11',FILE='DISK014:[03STP4.03STP1624]KS1624A.;11',USER='CKASTNE',CD='14-JUN-2003;14:04' -->
<A NAME="page_ks1624_1_12"> </A>
<UL>
<UL>

<P><FONT SIZE=2>occurred.
Approximately 170 tons of soil removed in 1994 and landfarmed. Future action may be required under State law. </FONT></P>

</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Chlorobenzene,
BTEX, diesel organics, oil and grease detected at F-Well, Building&nbsp;215 (old well found after demolition of Building 215). During demolition work in
late 1994, F-Well was discovered. F-Well put in place in early 1960s, but was never used as production well because of sediment problems. Later expansion of Building&nbsp;215 covered well over.
Future remedial action, if any, will be handled under CERCLA. </FONT></DD></DL>
</UL>

<P><FONT SIZE=2><B><I>Bacchus  </I></B></FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Initial
Assessment Study of NIROP&#151;Naval Energy and Environmental Support Activity; September&nbsp;1984. Publication No. NEESA 13-056
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>RCRA
Facilities Assessment&#151;Utah Dept. of Health; December&nbsp;1989
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>RCRA
Facility Investigation Workplan&#151;Hercules and AWD Technologies,&nbsp;Inc.; July&nbsp;1991
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Groundwater
Quality Assessments&#151;Earthfax Engineering,&nbsp;Inc.; November&nbsp;1988, January&nbsp;1991 and December&nbsp;1993
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Preliminary
Assessment of NIROP&#151;Naval Facilities Engineering Service Center; September&nbsp;1994. Publication No.&nbsp;PA-2250-ENV
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Releases
of oil/lubricants from former heavy equipment steam degreasing area. Cleaning of heavy equipment on the NIROP facility had occurred since possibly the early 1980s
and ceased in 1994. The amount of material that could have been released is unknown. No planned remediation of the area(s) where these releases occurred is scheduled. </FONT></DD></DL>
</UL>

<P><FONT SIZE=2><B><I>Bacchus Plant 2  </I></B></FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Phase
I Preliminary Environmental Assessment for Freeport Center&#151;Dames and Moore; March&nbsp;1989
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Preliminary
Subsurface Investigation Report for Freeport Center&#151;Dames and Moore; November&nbsp;1992 </FONT></DD></DL>
</UL>

<P><FONT SIZE=2><B><I>Kenvil  </I></B></FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Preliminary
Assessment Report&#151;Roux Associates; December&nbsp;1993
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Cracks
in concrete troughs and potential for releases of wastewater from sumps throughout the facility. The wastewater contains small concentrations of acetone and ethanol.
These potential releases are a result of the aging of the concrete over the manufacturing life of the facility. There is no current estimate of the amount of wastewater that could have been released.
No remediation is planned except as will eventually be addressed under the ISRA Remediation Agreement.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Heavily
stained soil at the No.&nbsp;6 fuel oil tanks in the Maintenance Area. These tanks have been located in this area for at least 20&nbsp;years. Future remediation
will be conducted pursuant to the ISRA Remediation Agreement. </FONT></DD></DL>
</UL>

<P><FONT SIZE=2><B><I>McGregor  </I></B></FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Initial
Assessment Study of Naval Weapons Industrial Reserve Plant; March&nbsp;1983
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Draft
RFI Report&#151;Dept. of the Navy and ENSAFE/Allen&nbsp;&amp; Hoshall; March&nbsp;9, 1994. Final completed November&nbsp;1994. </FONT></DD></DL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2>12</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=2,SEQ=37,EFW="2112669",CP="ALLIANT TECHSYSTEMS INC.",DN="2",CHK=948108,FOLIO='12',FILE='DISK014:[03STP4.03STP1624]KS1624A.;11',USER='CKASTNE',CD='14-JUN-2003;14:04' -->
<A NAME="page_ks1624_1_13"> </A>
<UL>
<UL>
</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Ammonium
perchlorate wastewater discharge to ground from rocket motor washout facility. Discharges started in late 1960s under previous contractor at the site. The estimated
amounts released are 350,000&nbsp;lbs. of ammonium perchlorate. Future remediation, if any, will be addressed through the Navy's Environmental Baseline Survey.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Potential
for oil in groundwater in Area&nbsp;F based upon odors from monitoring well boreholes (during installation) and oil sheen on the water table of three of the four
wells. It is unknown how, when or what amounts of materials could have been released.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Releases
of acids, toluene, trichlorobenzene and TATB may have occurred in the TATB production. Investigations at that site will be conducted during the facility contract
termination environmental efforts. Discharges occurred when TATB production began, which was in the early 1980s, and ceased in 1988. The amounts of discharges and releases, if any, cannot be
determined. Future remediation, if any, will be addressed through the Navy's Environmental Baseline Survey. </FONT></DD></DL>
</UL>
<BR>

<P><FONT SIZE=2><B><I>Radford  </I></B></FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>RFI
Workplan&#151;Dames&nbsp;&amp; Moore for the Army Environmental Center; September&nbsp;1, 1992 (Volumes 1 and 2)
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Verification
Investigation Report&#151;Dames&nbsp;&amp; Moore for the Army Environmental Center; August&nbsp;7, 1992
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>2,4-DNT
(in wastewater) and KO44 sludge were present in the unlined RCRA surface impoundment which was the old Bioplant Equalization Basin. A revised closure plan has been
submitted to the regulators and is awaiting approval. The unit will then be closed under RCRA. A new equalization basin meeting all RCRA requirements is currently under construction. </FONT></DD></DL>
</UL>

<P><FONT SIZE=2><B><I>Sunflower  </I></B></FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Preliminary
Assessment of Sunflower AAP&#151;US Army Toxic and Hazardous Materials Agency; April&nbsp;1980. Report No.&nbsp;163
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Interim
Report&#151;Summary of Data on 49 Solid Waste Management Units&#151;USAEHA; 1987
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Remedial
Investigation Report&#151;Dames&nbsp;&amp; Moore; 1989
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Geohydrologic
Study No. 38-26-8813-90, Nitroguanidine Production Area, Sunflower AAP, DeSoto, KS&#151;US Army Environmental Hygiene Agency; October&nbsp;1988
through December&nbsp;1989 </FONT></DD></DL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2>13</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=3,SEQ=38,EFW="2112669",CP="ALLIANT TECHSYSTEMS INC.",DN="2",CHK=491763,FOLIO='13',FILE='DISK014:[03STP4.03STP1624]KS1624A.;11',USER='CKASTNE',CD='14-JUN-2003;14:04' -->
<A NAME="page_ks1624_1_14"> </A>
<UL>
<UL>
</UL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="ks1624_schedule_ea_4.1(d)_compliance_with_environmental_laws"> </A>
<A NAME="toc_ks1624_2"> </A>
<BR></FONT><FONT SIZE=2>Schedule EA 4.1(d)    <BR>    <BR>    </FONT><FONT SIZE=2><B>COMPLIANCE WITH ENVIRONMENTAL LAWS    <BR>    </B></FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except as set forth in this Schedule EA 4.1(d), to the Knowledge of Hercules, GES and HDES, the HAC Facilities and HAC Business are in compliance in all material
respects with all Environmental Laws: </FONT></P>

<P><FONT SIZE=2><B><I>ABL  </I></B></FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Currently
operating under old Water Pollution Control permit. Permit applications filed in 1984, 1986 and 1993. A renewed/updated application has been requested from the
WVDEQ. The stormwater portion of the permit application has not been completed.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Deficiencies
in the Subpart X application for the burning grounds has resulted in the requirement to perform a risk assessment and the entering into a Consent Order
(pending) for corrective actions.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Location
of explosive waste burning ground may not meet minimum requirements in 40 CFR 265. Also being addressed in the pending Consent Order. </FONT></DD></DL>
</UL>
<BR>

<P><FONT SIZE=2><B><I>Bacchus  </I></B></FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Class&nbsp;V
injection well notifications not made&#151;State program. The current storm-water permit does, however, allow the facility until 5/5/95 for filing of
the notification.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Inadequate
cathodic protection on an underground RCRA wastewater tank at Building&nbsp;2440. Internal maintenance work order for corrective action has been issued. </FONT></DD></DL>
</UL>

<P><FONT SIZE=2><B><I>Kenvil  </I></B></FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>See
Kenvil permit issues&#151;Schedule EA 4.1(a)(1).
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>VOC
emissions; April&nbsp;1993 ACO addresses. See Schedule EA&nbsp;4.1(a)(2) for this background and other compliance issues.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Class&nbsp;V
injection well program&#151;no notifications made. Checking with State on program requirements. If State program exists, notifications will be made to
EPA if required.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Develop
and implement improved RCRA training program.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Discharge
Prevention Control and Countermeasures Plan (DPCCP). Draft will be submitted pursuant to March&nbsp;9, 1995 NJDEP request.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Spill
Prevention Control and Countermeasures Plan (SPCCP). Draft will be submitted pursuant to March&nbsp;9, 1995 NJDEP request. </FONT></DD></DL>
</UL>

<P><FONT SIZE=2><B><I>McGregor  </I></B></FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Class&nbsp;V
injection well program&#151;State program. Notifications not yet made. Now making determination on requirement with State in order to implement. </FONT></DD></DL>
</UL>

<P><FONT SIZE=2><B><I>Radford  </I></B></FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Requirement
to continue attempts to find a VOC emissions control system for the Multibase propellant line. This is not currently a non-compliance issue, but is a continuing
requirement under the current air emissions permit. </FONT></DD></DL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2>14</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=4,SEQ=39,EFW="2112669",CP="ALLIANT TECHSYSTEMS INC.",DN="2",CHK=508633,FOLIO='14',FILE='DISK014:[03STP4.03STP1624]KS1624A.;11',USER='CKASTNE',CD='14-JUN-2003;14:04' -->
<A NAME="page_ks1624_1_15"> </A>
<UL>
<UL>
</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Class&nbsp;V
injection well notification. Initial notification made, but still working with EPA on details.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Location
of explosive waste burning ground. Too close to property line (river) to meet 40 CFR 265. Justification for waiver filed with regulators. No action to date. </FONT></DD></DL>
</UL>
<BR>

<P><FONT SIZE=2><B><I>Sunflower  </I></B></FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Class&nbsp;V
injection well program. Now working with State on final determination of applicability. </FONT></DD></DL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2>15</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=5,SEQ=40,EFW="2112669",CP="ALLIANT TECHSYSTEMS INC.",DN="2",CHK=353915,FOLIO='15',FILE='DISK014:[03STP4.03STP1624]KS1624A.;11',USER='CKASTNE',CD='14-JUN-2003;14:04' -->
<UL>
<UL>
</UL>
</UL>
<!-- THIS IS THE END OF A COMPOSITION COMPONENT -->
<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="page_ku1624_1_16"> </A> </FONT></P>

<!-- TOC_END -->
<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="ku1624_schedule_ea_4.1(e)_off-site_di__sch03206"> </A>
<A NAME="toc_ku1624_1"> </A>
<BR></FONT><FONT SIZE=2>Schedule EA 4.1(e)    <BR>    <BR>    </FONT><FONT SIZE=2><B>OFF-SITE DISPOSAL OF HAZARDOUS SUBSTANCES AT SITES<BR>  LISTED FOR CLEANUP    <BR>    </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except as set forth in this Schedule&nbsp;EA&nbsp;4.1(e), in connection with the HAC Facilities and the HAC Business, to the Knowledge of Hercules, GES or
HDES, neither Hercules, GES nor HDES has transported or arranged (directly or indirectly) for the transportation of any Hazardous Substance for disposal at any location which is listed, or proposed
for listing, on the National Priorities List promulgated pursuant to CERCLA, or on similar State list of sites requiring Remedial Action, or which is undergoing Remedial Action pursuant to
Environmental Laws: </FONT></P>

<P><FONT SIZE=2><B><I>ABL  </I></B></FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Limestone
Road Superfund site; filed May&nbsp;1994 </FONT></DD></DL>
</UL>
<UL>
<UL>

<P><FONT SIZE=2>Shipment
of waste from ABL to Limestone Road site. Volume and nature of waste must still be determined. </FONT></P>

<P><FONT SIZE=2>Hercules'
contribution to settlement is being sought by the parties who have performed the RI/FS and the capping and fencing at the site. Approximately $4 Million is expected to be spent through
completion of the RI/FS. Hercules has arranged for the disposal of 16 drums identified as ours during the capping work. Contents of document repository in Philadelphia will be reviewed. </FONT></P>

</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Archem
Company site, last operated by Thomas Chelsea Chemical Company, USA, Houston, TX </FONT></DD></DL>
</UL>
<UL>
<UL>

<P><FONT SIZE=2>ABL
received a 104(e) information request in August&nbsp;1993. Hercules' response indicated Archem had been a supplier of product to both our ABL and Bacchus facilities. It appears the majority of
material supplied to Hercules was K-7 (a curing agent). </FONT></P>

<P><FONT SIZE=2>On
January&nbsp;18, 1994, Hercules received a request from the Texas Water Commission (TWC) to participate in a removal action at the site. Past costs incurred by the TWC are $721,673. Hercules is
preparing a response denying responsibility as a potentially responsible party and declining to participate in the removal action. </FONT></P>

</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Municipal
Industrial Disposal Company site in Elizabeth Township, Allegheny County, PA </FONT></DD></DL>
<UL>

<P><FONT SIZE=2>See
EA&nbsp;4.1(b)(iii) for background information. </FONT></P>

</UL>
</UL>

<P><FONT SIZE=2><B><I>Bacchus  </I></B></FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Hansen
Container Site, Grand Junction, Mesa, CO; filed January&nbsp;1995 </FONT></DD></DL>
</UL>
<UL>
<UL>

<P><FONT SIZE=2>CERCLA
Section&nbsp;104(e) request for information received from the EPA, Region&nbsp;VIII. Bacchus Works allegedly sold empty drums for scrap in the 60s and 70s, and gave Hansen drums in 1989 and
1990, which were disposed of at the Hansen Container site. EPA is conducting clean-up activities and is seeking information as to the number and contents of drums. </FONT></P>

</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Archem
Company site, last operated by Thomas Chelsea Chemical Co., USA, Houston, TX </FONT></DD></DL>
</UL>
<UL>
<UL>

<P><FONT SIZE=2>See
ABL. </FONT></P>

</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Chemical
Commodities Sites, Kansas City and Shawnee, Kansas </FONT></DD></DL>
</UL>
<UL>
<UL>

<P><FONT SIZE=2>See
McGregor. </FONT></P>

</UL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2>16</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=1,SEQ=41,EFW="2112669",CP="ALLIANT TECHSYSTEMS INC.",DN="2",CHK=542234,FOLIO='16',FILE='DISK014:[03STP4.03STP1624]KU1624A.;8',USER='CKASTNE',CD='14-JUN-2003;14:04' -->
<A NAME="page_ku1624_1_17"> </A>
<UL>
<UL>
</UL>
</UL>

<P><FONT SIZE=2><B><I>HDES  </I></B></FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Seaboard
Superfund Site, High Point, NC </FONT></DD></DL>
</UL>
<UL>
<UL>

<P><FONT SIZE=2>Unisys,
former owner of HDES facility, has agreed to indemnify HDES for any potential liability associated with the site for activities occurring prior to October&nbsp;1986. Two post-closing
shipments to this site are being investigated. HDES has been asked to join the PRP group. </FONT></P>

</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Peak
Oil Superfund Site, Tampa, FL </FONT></DD></DL>
<UL>

<P><FONT SIZE=2>HDES
received a 104(e) information request in February&nbsp;1993. Hercules responded with no connection to this entity. Requested indemnity from Unisys, who responded that the claim was premature.
No connection identified. Unisys indemnifying/defending. </FONT></P>

</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Zellwood
Groundwater Contamination Site, Orange County, FL </FONT></DD></DL>

<UL>

<P><FONT SIZE=2>HDES
received a 104(e) information request in April&nbsp;1992. Hercules responded that no connection for disposal at this site could be found. Unisys agreed to indemnify Hercules unless otherwise
determined. No connection identified. Unisys indemnifying/defending. </FONT></P>

</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Bay
Drums Superfund Site, Brandon, FL (east of Tampa) </FONT></DD></DL>
</UL>
<UL>
<UL>

<P><FONT SIZE=2>HDES
received a letter in February&nbsp;1991; responded that no connection existed between HDES and entity. Unisys agreed to defend for pre-closing activities. No connection identified. Unisys
indemnifying/defending. </FONT></P>

</UL>
</UL>

<P><FONT SIZE=2><B><I>McGregor  </I></B></FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Chemical
Commodities Sites, Kansas City and Shawnee, Kansas </FONT></DD></DL>
</UL>
<UL>
<UL>

<P><FONT SIZE=2>Company
purchased raw materials but abandoned the site. One drum traced back to Hercules. </FONT></P>

</UL>
</UL>

<P><FONT SIZE=2><B><I>Radford  </I></B></FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Consent
Decree entered on January&nbsp;25, 1995.<BR>
Parties:&nbsp;EPA, Region&nbsp;III, and Hercules </FONT></DD></DL>
</UL>
<UL>
<UL>

<P><FONT SIZE=2>Hercules
auctioned off batteries which ended up at the Bypass&nbsp;601 Superfund site, Concord, NC. Hercules is a member of the site remediation group engaged in clean-up. Liability calculated based
upon pro-rata volumetric contribution of material to the site. Radford's total contribution over multi-year clean-up plan is estimated to be $22-28,000. </FONT></P>

</UL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2>17</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=2,SEQ=42,EFW="2112669",CP="ALLIANT TECHSYSTEMS INC.",DN="2",CHK=221752,FOLIO='17',FILE='DISK014:[03STP4.03STP1624]KU1624A.;8',USER='CKASTNE',CD='14-JUN-2003;14:04' -->
<A NAME="page_ku1624_1_18"> </A>
<UL>
<UL>
</UL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="ku1624_schedule_ea_4.1(f)(i)_real_pro__sch02590"> </A>
<A NAME="toc_ku1624_2"> </A>
<BR></FONT><FONT SIZE=2>Schedule EA 4.1(f)(i)    <BR>    <BR>    </FONT><FONT SIZE=2><B>REAL PROPERTY USED IN HAC BUSINESS LISTED FOR CLEANUP    <BR>    </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except as set forth in this Schedule&nbsp;EA&nbsp;4.1(f)(i)<SUP>(1)</SUP>, to the Knowledge of Hercules, GES or HDES: </FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(i)</FONT></DT><DD><FONT SIZE=2>no
oral or written notification of a Release of a Hazardous Substance, with respect to a HAC Facility or the HAC Business, has been filed with any Environmental Authority. </FONT></DD></DL>
</UL>

<P><FONT SIZE=2><B><I>ABL  </I></B></FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Acid
release. For additional information, see Schedule&nbsp;EA&nbsp;4.1(c). </FONT></DD></DL>
</UL>

<P><FONT SIZE=2><B><I>Kenvil  </I></B></FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Wastewater
containing acetone and ethanol. For additional information, see Schedule&nbsp;EA&nbsp;4.1(c). </FONT></DD></DL>
</UL>

<P><FONT SIZE=2><B><I>McGregor  </I></B></FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Oil
leaks at two sites, Areas&nbsp;F and R.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>X-ray
film processing fixer solution </FONT></DD></DL>
</UL>
<BR>
<HR NOSHADE ALIGN="LEFT" WIDTH="120">
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(1)</FONT></DT><DD><FONT SIZE=2>Not
all notifications of releases (spills) filed with environmental authorities are being reported here. Only those which may require some future action are listed. </FONT></DD></DL>
<P ALIGN="CENTER"><FONT SIZE=2>18</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=3,SEQ=43,EFW="2112669",CP="ALLIANT TECHSYSTEMS INC.",DN="2",CHK=944627,FOLIO='18',FILE='DISK014:[03STP4.03STP1624]KU1624A.;8',USER='CKASTNE',CD='14-JUN-2003;14:04' -->
<A NAME="page_ku1624_1_19"> </A>
<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="ku1624_schedule_ea_4.1(f)(ii)"> </A>
<A NAME="toc_ku1624_3"> </A>
<BR></FONT><FONT SIZE=2>Schedule EA 4.1(f)(ii)    <BR></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except
as set forth in this Schedule&nbsp;EA&nbsp;4.1(f)(ii), to the Knowledge of Hercules, GES or HDES: </FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(ii)</FONT></DT><DD><FONT SIZE=2>No
HAC Facility is undergoing Remedial Action pursuant to Environmental Laws. </FONT></DD></DL>
</UL>
<BR>

<P><FONT SIZE=2><B><I>ABL  </I></B></FONT></P>

<P><FONT SIZE=2><B>Bacchus Works, including Plant&nbsp;1 (including Composite Structures), NIROP, and Tekoi  </B></FONT></P>

<P><FONT SIZE=2><B>Kenvil  </B></FONT></P>

<P><FONT SIZE=2><B>McGregor  </B></FONT></P>

<P><FONT SIZE=2><B>Radford  </B></FONT></P>

<P><FONT SIZE=2><B>Sunflower  </B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>19</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=4,SEQ=44,EFW="2112669",CP="ALLIANT TECHSYSTEMS INC.",DN="2",CHK=813204,FOLIO='19',FILE='DISK014:[03STP4.03STP1624]KU1624A.;8',USER='CKASTNE',CD='14-JUN-2003;14:04' -->
<A NAME="page_ku1624_1_20"> </A>
<P ALIGN="CENTER"><FONT SIZE=2><B> <A NAME="ku1624_schedule_4.1(h)_liens"> </A>
<A NAME="toc_ku1624_4"> </A>
<BR>    </B></FONT><FONT SIZE=2>Schedule 4.1(h)    <BR>    <BR>    </FONT><FONT SIZE=2><B>LIENS    <BR>    </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except as set forth in this Schedule&nbsp;EA&nbsp;4.1(h), no liens have attached to any of the HAC Facilities owned by Hercules, GES or HDES as a result of
the expenditure of monies by any Environmental Authority or other third party to pay for Remedial Actions at the HAC Facilities. </FONT></P>


<P><FONT SIZE=2><B><I>Kenvil  </I></B></FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Chase
Bank is the issuer of a Letter of Credit (PG631298) in the amount of $500,000 for the 1988 ACO issued by the DEP for closure of the old burning ground. The beneficiary
is the DEP. </FONT></DD></DL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2>20</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=5,SEQ=45,EFW="2112669",CP="ALLIANT TECHSYSTEMS INC.",DN="2",CHK=992620,FOLIO='20',FILE='DISK014:[03STP4.03STP1624]KU1624A.;8',USER='CKASTNE',CD='14-JUN-2003;14:04' -->
<A NAME="page_ku1624_1_21"> </A>
<UL>
<UL>
</UL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="ku1624_schedule_4.1(i)"> </A>
<A NAME="toc_ku1624_5"> </A>
<BR></FONT><FONT SIZE=2>Schedule 4.1(i)    <BR></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except
as set forth in this Schedule&nbsp;EA&nbsp;4.1(i), to the Knowledge of Hercules, GES or HDES, no Institutional Control has been imposed or recorded in any public document with
respect to any of the HAC Facilities. </FONT></P>

<P><FONT SIZE=2><B><I>McGregor  </I></B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Recorded on Deed: </FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#151;</FONT></DT><DD><FONT SIZE=2>Construction
debris landfill near Area&nbsp;D
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#151;</FONT></DT><DD><FONT SIZE=2>Construction
debris landfill near Area&nbsp;M
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#151;</FONT></DT><DD><FONT SIZE=2>Plant
roads (apparently they were oiled in the early days of the facility)
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#151;</FONT></DT><DD><FONT SIZE=2>Landfill
in Area&nbsp;S (to accommodate disposal of impoundment soil from TATB area) </FONT></DD></DL>
</UL>
<BR>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOTE:
Other areas which will require recording include an asbestos landfill from a previous tenant, the pesticide area from a previous tenant, and another inactive debris landfill near
Area&nbsp;E. Depending upon how other solid waste management units are closed, they will require recording of the deed if closed with contaminants in place. </FONT></P>

<P><FONT SIZE=2><B><I>Radford  </I></B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Recorded on Deed: </FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#151;</FONT></DT><DD><FONT SIZE=2>Asbestos
landfill
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#151;</FONT></DT><DD><FONT SIZE=2>Sanitary
landfill </FONT></DD></DL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2>21</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=6,SEQ=46,EFW="2112669",CP="ALLIANT TECHSYSTEMS INC.",DN="2",CHK=623,FOLIO='21',FILE='DISK014:[03STP4.03STP1624]KU1624A.;8',USER='CKASTNE',CD='14-JUN-2003;14:04' -->
<UL>
<UL>
</UL>
</UL>
<!-- THIS IS THE END OF A COMPOSITION COMPONENT -->
<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="page_kv1624_1_22"> </A> </FONT></P>

<!-- TOC_END -->
<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="kv1624_schedule_4.1(j)_engineering_controls"> </A>
<A NAME="toc_kv1624_1"> </A>
<BR></FONT><FONT SIZE=2>Schedule 4.1(j)    <BR>    <BR>    </FONT><FONT SIZE=2><B>ENGINEERING CONTROLS    <BR>    </B></FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except as set forth in this Schedule&nbsp;EA&nbsp;4.1(j), to the Knowledge of Hercules, GES or HDES, no Engineering Control has been implemented or installed
at any of the HAC Facilities. </FONT></P>

<P><FONT SIZE=2><B><I>ABL  </I></B></FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Landfarming
of oil-contaminated soil from spill near the boilerhouse at Plant 2, including plastic sheeting underneath the soil
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Roll-off
boxes of soil from the Beryllium Landfill (from a removal action) and the roof structure covering them
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Site
5&#151;general plant debris&#151;cap on landfill </FONT></DD></DL>
</UL>

<P><FONT SIZE=2><B><I>Kenvil  </I></B></FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Solid
waste landfill access control
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Fence
and signs around old drum burial site near the Maintenance Area&#151;solid waste management unit
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Barricades
and signs restricting access to the TNT Area </FONT></DD></DL>
</UL>

<P><FONT SIZE=2><B><I>McGregor  </I></B></FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Asbestos
landfill&#151;cap and warning signs
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Landfill
near Area&nbsp;S with soil from TATB Area impoundment&#151;cap
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Beryllium
burial warning signs in Area&nbsp;S&#151;old site which is pre-Hercules
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Locked
gates at Area&nbsp;G warehouse where DDT was stored&#151;non-Hercules tenant </FONT></DD></DL>
</UL>

<P><FONT SIZE=2><B><I>Radford  </I></B></FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Hazardous
waste landfill SWMU&nbsp;16 (closed) with cap and leachate collection system and identification signs
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>SWMU&nbsp;5&nbsp;&amp;
7 acidic wastewater lagoons (closed) with caps and identification signs
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Asbestos
landfill (closed) with warning signs </FONT></DD></DL>
</UL>

<P><FONT SIZE=2><B><I>Sunflower  </I></B></FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Caps,
fence and leachate collection system for calcium carbonate landfill
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Fences
and warning signs around asbestos landfills </FONT></DD></DL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2>22</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=1,SEQ=47,EFW="2112669",CP="ALLIANT TECHSYSTEMS INC.",DN="2",CHK=375811,FOLIO='22',FILE='DISK014:[03STP4.03STP1624]KV1624A.;7',USER='CKASTNE',CD='14-JUN-2003;14:04' -->
<UL>
<UL>
</UL>
</UL>
<!-- THIS IS THE END OF A COMPOSITION COMPONENT -->
<!-- TOC_END -->
<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="kx1624_schedule_4.2(a)_alliant__kx102128"> </A>
<A NAME="toc_kx1624_1"> </A>
<BR></FONT><FONT SIZE=2><B>Schedule 4.2(a)    <BR>    <BR>    ALLIANT COMPLIANCE WITH ENVIRONMENTAL LAWS    <BR>    </B></FONT></P>

<HR NOSHADE>
<!-- ZEQ.=1,SEQ=48,EFW="2112669",CP="ALLIANT TECHSYSTEMS INC.",DN="2",CHK=191211,FOLIO='blank',FILE='DISK014:[03STP4.03STP1624]KX1624A.;6',USER='CKASTNE',CD='14-JUN-2003;14:04' -->
<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="kx1624_schedule_ea_4.2(a)_compliance_with_environmental_laws"> </A>
<A NAME="toc_kx1624_2"> </A>
<BR></FONT><FONT SIZE=2>Schedule EA 4.2(a)    <BR>    <BR>    </FONT><FONT SIZE=2><I>Compliance With Environmental Laws    <BR>    </I></FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT SIZE=2><B>Alliant Techsystems is in compliance in all material respects with environmental laws applicable to the business of Alliant
except:</B></FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Littleton,
Colorado, a.k.a. Metrum facility. The ground water exceeds state standards for volatile organic compounds. This ground water contamination is a result of past
practices at the site. Contaminated groundwater extends beyond the property boundary which is non compliant with the Colorado Water Quality Control Commission rules. Alliant has been voluntarily
studying this site since 1990 and in cooperation with the Colorado Department of Environment and Public Health. The remediation plans are being finalized with expected implementation in
FY&nbsp;1996. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ground
water contamination at Mukilteo is being investigated. In 1990, ground water samples from the main plant indicated some elevated levels of some metals and
organics. There seems to be a question whether these samples are valid. We need to resample to determine if there are elevated levels of metals and organics. The State had not addressed this
possibility of contamination except by a letter which indicates that this site may have been placed on tentative Superfund list. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Qui Tam lawsuit, U.S. ex rel Fallon&nbsp;v. Accudyne, filed September&nbsp;23, 1994 in the United States District Court for the Western District of Wisconsin,
alleges a number of environmental violations at the Accudyne facility. Generally, the complaint includes alleged violations of RCRA for improper storage and disposal of hazardous waste and failure to
have an adequate training program for employees, Clean Water Act for improper discharges, and Emergency Planning and Community Right-to-Know Act reporting. Refer to the complaint for the specific
allegations. </FONT></P>

</UL>
<HR NOSHADE>
<!-- ZEQ.=2,SEQ=49,EFW="2112669",CP="ALLIANT TECHSYSTEMS INC.",DN="2",CHK=879091,FOLIO='blank',FILE='DISK014:[03STP4.03STP1624]KX1624A.;6',USER='CKASTNE',CD='14-JUN-2003;14:04' -->
<UL>
<BR>
</UL>
<!-- THIS IS THE END OF A COMPOSITION COMPONENT -->
<!-- TOC_END -->
<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="kz1624_4.2(b)(1)_alliant_environmental_permits_issued"> </A>
<A NAME="toc_kz1624_1"> </A>
<BR></FONT><FONT SIZE=2><B>4.2(b)(1)    <BR>    <BR>    ALLIANT ENVIRONMENTAL PERMITS ISSUED    <BR>    </B></FONT></P>

<HR NOSHADE>
<!-- ZEQ.=1,SEQ=50,EFW="2112669",CP="ALLIANT TECHSYSTEMS INC.",DN="2",CHK=697413,FOLIO='blank',FILE='DISK014:[03STP4.03STP1624]KZ1624A.;7',USER='CKASTNE',CD='14-JUN-2003;14:04' -->
<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="kz1624_schedule_ea_4.2(b)(1)_issued_permits"> </A>
<A NAME="toc_kz1624_2"> </A>
<BR></FONT><FONT SIZE=2>Schedule EA 4.2(b)(1)    <BR>    <BR>    </FONT><FONT SIZE=2><I>Issued Permits    <BR>    </I></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT SIZE=2><B>Alliant Techsystems has obtained all environmental permits necessary for the operation of Alliant facilities and business. All
environmental permits necessary for the operation of Alliant facilities have been issued to Alliant and are in full force and effect except:</B></FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;With
regard to the Hopkins facility, a request has been made to the Minneapolis Metropolitan Waste Control Commission for a determination if an industrial waste discharge
permit is necessary for the limited discharge of chemically treated cooling water to be discharged into the sanitary sewer. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For
both Hopkins and TCAAP, an air emissions permit application has been submitted to the MPCA as of April of 1992. However the MPCA has indicated that it will not act
upon the application and issue a permit until the submittal of either a Registration or Title&nbsp;V permit application due in 1995. Alliant is currently in compliance via the April&nbsp;1992
submittal of the two facility air emissions permit applications. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ferrulmatic
is in the process of applying for a sanitary sewer discharge permit to allow the discharge of approx. 500&nbsp;gallons of non hazardous water into the
sanitary sewer. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Alliant
is working with the NRC to amend an existing Alliant license to store depleted uranium contaminated sand at ATLF (Joliet Army Ammunition Plant). This sand was
discovered the summer of 1994. It appears that it was residual from a cleanup in 1989. The NRC was notified and a cleanup was conducted. As part of the remediation effort, the sand is now being
accumulated on site, awaiting final disposition. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accudyne
does not have an air emissions inventory. We expect to submit the required Title&nbsp;V documentation in September&nbsp;of 1995. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Alliant Techsystems Proving Grounds&nbsp;(ATPG) is conducting open burn and open detonation under a compliance plan with the MPCA while the Subpart&nbsp;X permit
application is being developed. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;With
regard to air permits, the required Title&nbsp;V documentation will be submitted as required for each facility. </FONT></P>

</UL>
<HR NOSHADE>
<!-- ZEQ.=2,SEQ=51,EFW="2112669",CP="ALLIANT TECHSYSTEMS INC.",DN="2",CHK=859313,FOLIO='blank',FILE='DISK014:[03STP4.03STP1624]KZ1624A.;7',USER='CKASTNE',CD='14-JUN-2003;14:04' -->
<UL>
<BR>
</UL>
<!-- THIS IS THE END OF A COMPOSITION COMPONENT -->
<!-- TOC_END -->
<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="la1624_schedule_4.2(b_)(2)_alliant_compliance_with_permits"> </A>
<A NAME="toc_la1624_1"> </A>
<BR></FONT><FONT SIZE=2><B>Schedule 4.2(b )(2)    <BR>    <BR>    ALLIANT COMPLIANCE WITH PERMITS    <BR>    </B></FONT></P>

<HR NOSHADE>
<!-- ZEQ.=1,SEQ=52,EFW="2112669",CP="ALLIANT TECHSYSTEMS INC.",DN="2",CHK=283098,FOLIO='blank',FILE='DISK014:[03STP4.03STP1624]LA1624A.;6',USER='CKASTNE',CD='14-JUN-2003;14:04' -->
<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="la1624_schedule_4.2(b)(2)_compliance_with_permits"> </A>
<A NAME="toc_la1624_2"> </A>
<BR></FONT><FONT SIZE=2><I>Schedule 4.2(b)(2)<BR>  <BR>    Compliance with Permits    <BR>    </I></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT SIZE=2><B>Alliant Techsystems is in compliance in all material respects with the environmental permits issued to Alliant except
that:</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ferrulmatic
Operations, New Jersey. An in house audit at Ferrulmatic has revealed that the New Jersey air permits may have been done incorrectly. A letter of intent in
accordance with the NJDEPE "amnesty program" will be filed as well as a request for a representative of NJDEPE to review the Ferrulmatic permits. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At
the Alliant Techsystems LAP Facility at the Joliet Army Ammunition Plant, a possible storage violation was identified during an IEPA inspection on November&nbsp;28,
1994. Hazardous waste in the 90 day generator accumulation area within Group 3-A may have been stored longer than 90 days. Alliant is not expecting nor has received a Notice of Violation at this time. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
NPDES permit at the Kilgore facility is pending. All comments are due by March&nbsp;20, 1995. We have not been given any indication that the permit will not be
approved. The major issue with this permit deals with the levels of metals which are being discharged into the lagoon. The Kilgore processes do not discharge the subject metals in a manner in which
they could enter the lagoon. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Kilgore
is developing its corrective action program for the facility RCRA permit. </FONT></P>

<HR NOSHADE>
<!-- ZEQ.=2,SEQ=53,EFW="2112669",CP="ALLIANT TECHSYSTEMS INC.",DN="2",CHK=134799,FOLIO='blank',FILE='DISK014:[03STP4.03STP1624]LA1624A.;6',USER='CKASTNE',CD='14-JUN-2003;14:04' -->
<!-- THIS IS THE END OF A COMPOSITION COMPONENT -->
<!-- TOC_END -->
<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="lc1624_schedule_4.2(c)_existing_claim__sch02875"> </A>
<A NAME="toc_lc1624_1"> </A>
<BR></FONT><FONT SIZE=2><B>Schedule 4.2(c)    <BR>    <BR>    EXISTING CLAIMS ASSERTED OR THREATENED<BR>  WITH RESPECT TO ALLIANT    <BR>    </B></FONT></P>

<HR NOSHADE>
<!-- ZEQ.=1,SEQ=54,EFW="2112669",CP="ALLIANT TECHSYSTEMS INC.",DN="2",CHK=452825,FOLIO='blank',FILE='DISK014:[03STP4.03STP1624]LC1624A.;10',USER='CKASTNE',CD='14-JUN-2003;14:04' -->
<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="lc1624_schedule_ea_4.2(c)_existing_claims"> </A>
<A NAME="toc_lc1624_2"> </A>
<BR></FONT><FONT SIZE=2><I>Schedule EA 4.2(c)<BR>  <BR>    Existing Claims    <BR>    </I></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT SIZE=2><B>Alliant Techsystems has no knowledge that any environmental claim has been asserted or threatened with respect to any:  </B></FONT></P>

<P><FONT SIZE=2><B> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;alleged violation by Alliant of any environmental laws or the terms and conditions of any environmental permits issued to Alliant , except:
</B></FONT></P>

<UL>

<P><FONT SIZE=2>Case
Name:&nbsp;&nbsp;&nbsp;&nbsp;U.S. ex rel Fallon v. Accudyne<BR>
Date Filed:&nbsp;&nbsp;&nbsp;&nbsp;September&nbsp;23, 1994<BR>
Former and one current employees in conjunction with an environmental non-profit group have filed a Qui Tam action under the False Claims Act alleging inter alia, environmental violations. </FONT></P>

<P><FONT SIZE=2>Case
Name:&nbsp;&nbsp;&nbsp;&nbsp;State of Wisconsin v. Accudyne Corp.<BR>
Date Filed:&nbsp;&nbsp;&nbsp;&nbsp;January&nbsp;18, 1995<BR>
Alleged violation of Emergency Planning and Community Right to Know Act reporting by Accudyne Corp. prior to Alliant's acquisition of it. There is a stipulation between the State and Alliant staying
Alliant's need to file an answer until after the Accudyne Qui Tam action has been tried. </FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>(ii)&nbsp;&nbsp;&nbsp;alleged failure by Alliant to have any environmental permits, except:  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;None. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>(iii)&nbsp;generation, treatment, storage, recycling, transportation, disposal or release of any hazardous substance generated by Alliant,
except:</B></FONT></P>

<UL>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;Honeywell
and Alliant share responsibility for a number of Superfund sites. While settlement agreements have been entered into with respect to these sites, there are
reopeners which in all cases should be de minimis. These sites include: </FONT></P>

<UL>
<UL>

<P><FONT SIZE=2>Lowry
Airport Landfill<BR>
Denver, Colorado<BR>
Settled </FONT></P>

<P><FONT SIZE=2>Envirochem
Superfund Site<BR>
Indianapolis, Indiana<BR>
Settled </FONT></P>

<P><FONT SIZE=2>Northside
Sanitary Landfill<BR>
Zionville, Indiana<BR>
Settled </FONT></P>


<P><FONT SIZE=2>Great
Lakes Asphalt Site<BR>
Indianapolis, Indiana<BR>
Settled </FONT></P>

<P><FONT SIZE=2>Waste
Disposal Engineering Landfill<BR>
Andover, Minnesota<BR>
Settled </FONT></P>

<P><FONT SIZE=2>Western
Processing Site<BR>
Kent, Washington<BR>
Settled </FONT></P>

<P><FONT SIZE=2>Industrial
Solvents Chemical Company<BR>
York Haven, Pennsylvania<BR>
Settled </FONT></P>

</UL>
</UL>
</UL>
<HR NOSHADE>
<!-- ZEQ.=2,SEQ=55,EFW="2112669",CP="ALLIANT TECHSYSTEMS INC.",DN="2",CHK=590157,FOLIO='blank',FILE='DISK014:[03STP4.03STP1624]LC1624A.;10',USER='CKASTNE',CD='14-JUN-2003;14:04' -->
<A NAME="page_lc1624_1_2"> </A>
<UL>
<UL>
<UL>
<BR>
</UL>
</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;Superfund
sites in which Alliant is a PRP: </FONT></P>

<UL>
<UL>

<P><FONT SIZE=2>Union
Scrap III<BR>
Minneapolis, Minnesota<BR>
The settlement in this case is being finalized. Expected contribution of Alliant $30,000. </FONT></P>

<P><FONT SIZE=2>East
Bethel Landfill<BR>
Anoka County, Minnesota<BR>
Settled, but there is a possibility of reopener if the remedy costs more than expected. </FONT></P>

</UL>
</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;Alliant
is being investigated as a PRP at the following sites: </FONT></P>

<UL>
<UL>

<P><FONT SIZE=2>Tulalip
Landfill<BR>
Snohomish County, Washington<BR>
A request for information has been received by the U.S. EPA.<BR>
A de minimis buy out is expected. </FONT></P>

<P><FONT SIZE=2>Solvents
Recovery Service of New England<BR>
Southington, Connecticut<BR>
A notice of potential liability has been received by the U.S. EPA.<BR>
A de minimis buy out is expected. </FONT></P>

</UL>
</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;A
contribution claim has been filed for the following site: </FONT></P>

<UL>
<UL>

<P><FONT SIZE=2>Case
Name:&nbsp;&nbsp;&nbsp;&nbsp;Eveready Battery Company v. Alliant Techsystems, et al.<BR>
Date Filed:&nbsp;&nbsp;&nbsp;&nbsp;August&nbsp;11, 1994.<BR>
Description:&nbsp;&nbsp;&nbsp;&nbsp;This case is a contribution action for the clean up of the Burgess Brothers Landfill in Bennington, Vermont. It arises from the purchase of batteries by Honeywell in the late
1960's and early 1970's from Eveready (Union Carbide). Honeywell did not contribute any waste directly to the landfill. The plaintiff seems to be relying on </FONT> <FONT SIZE=2><I>Aceto</I></FONT><FONT SIZE=2> theories. </FONT></P>

</UL>
</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;Alliant
is operating under an administrative consent order or Record of Decision for the pump and treat of ground water at the following sites: </FONT></P>

<UL>
<UL>

<P><FONT SIZE=2>1.&nbsp;&nbsp;&nbsp;&nbsp;Trio
Solvent Site.<BR>
Record of Decision with the MPCA. </FONT></P>


<P><FONT SIZE=2>2.&nbsp;&nbsp;&nbsp;&nbsp;Signal
Analysis Center.<BR>
Currently operating; there is a draft consent order which should be completed with in 2-3 months. </FONT></P>

<P><FONT SIZE=2>3.&nbsp;&nbsp;&nbsp;&nbsp;New
Brighton Plume Groundwater Treatment Systems.<BR>
Record of Decision with the MPCA. </FONT></P>

</UL>
</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;Alliant's
threatened litigation regarding environmental matters: </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
ground water contamination at the Littleton, Colorado facility has moved under the neighboring property. This property is owned by Creek Dry Road,&nbsp;Inc. which
is owned by Sandoz Corp. Sandoz has threatened to sue Alliant for the decrease of value of its property because of the contamination. We have entered into an agreement to toll the statute of
limitation for this matter in order to allow Sandoz time to sell this property and avoid a lawsuit. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Alliant
has read in the newspapers that the city of Superior, Wisconsin with other nearby cities, are considering suing Honeywell and other potentially responsible
parties, for the removal of hundreds of 55-gallon barrels which were dumped into Lake Superior over 20 years ago. The facts are unclear but Honeywell would likely look to Alliant to defend this suit
as it appears to originate from the defense business. </FONT></P>

</UL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2>2</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=3,SEQ=56,EFW="2112669",CP="ALLIANT TECHSYSTEMS INC.",DN="2",CHK=653195,FOLIO='2',FILE='DISK014:[03STP4.03STP1624]LC1624A.;10',USER='CKASTNE',CD='14-JUN-2003;14:04' -->
<UL>
<UL>
</UL>
</UL>
<!-- THIS IS THE END OF A COMPOSITION COMPONENT -->
<BR>
<P><br><A NAME="03STP1623_2">QuickLinks</A><br></P><!-- TOC_BEGIN -->
<UL>
<FONT SIZE=2><A HREF="#toc_kb1624_1">Exhibit 10.2.1</A></FONT><BR>
</UL>
<!-- TOC_BEGIN -->
<FONT SIZE=2><A HREF="#toc_kc1624_1">TABLE OF CONTENTS</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_kc1624_2">INDEX OF DEFINED TERMS</A></FONT><BR>
<!-- TOC_BEGIN -->
<FONT SIZE=2><A HREF="#toc_ke1624_1">ARTICLE ONE</A></FONT><BR>
<!-- TOC_BEGIN -->
<FONT SIZE=2><A HREF="#toc_kg1624_1">ARTICLE TWO</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_kg1624_2">ARTICLE THREE</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_kg1624_3">ARTICLE FOUR</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_kg1624_4">ARTICLE FIVE</A></FONT><BR>
<!-- TOC_BEGIN -->
<FONT SIZE=2><A HREF="#toc_ki1624_1">ARTICLE SIX</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_ki1624_2">ARTICLE SEVEN</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_ki1624_3">ARTICLE EIGHT</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_ki1624_4">ARTICLE NINE</A></FONT><BR>
<!-- TOC_BEGIN -->
<FONT SIZE=2><A HREF="#toc_kk1624_1">ARTICLE TEN</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_kk1624_2">ARTICLE ELEVEN</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_kk1624_3">ARTICLE TWELVE</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_kk1624_4">ARTICLE THIRTEEN</A></FONT><BR>
<!-- TOC_BEGIN -->
<FONT SIZE=2><A HREF="#toc_ko1624_1">Schedule EA 4.1(a)(1) PERMITS</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_ko1624_2">Schedule EA 4.1(a)(3)</A></FONT><BR>
<!-- TOC_BEGIN -->
<FONT SIZE=2><A HREF="#toc_kq1624_1">Schedule EA 4.1(b)(i) EXISTING CLAIMS</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_kq1624_2">Schedule EA 4.1 (b) (ii)</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_kq1624_3">Schedule EA 4.1 (b)(iii)</A></FONT><BR>

<!-- TOC_BEGIN -->
<FONT SIZE=2><A HREF="#toc_ks1624_1">Schedule EA 4.1(c) HAZARDOUS SUBSTANCES</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_ks1624_2">Schedule EA 4.1(d) COMPLIANCE WITH ENVIRONMENTAL LAWS</A></FONT><BR>
<!-- TOC_BEGIN -->
<FONT SIZE=2><A HREF="#toc_ku1624_1">Schedule EA 4.1(e) OFF-SITE DISPOSAL OF HAZARDOUS SUBSTANCES AT SITES LISTED FOR CLEANUP</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_ku1624_2">Schedule EA 4.1(f)(i) REAL PROPERTY USED IN HAC BUSINESS LISTED FOR CLEANUP</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_ku1624_3">Schedule EA 4.1(f)(ii)</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_ku1624_4">Schedule 4.1(h) LIENS</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_ku1624_5">Schedule 4.1(i)</A></FONT><BR>
<!-- TOC_BEGIN -->
<FONT SIZE=2><A HREF="#toc_kv1624_1">Schedule 4.1(j) ENGINEERING CONTROLS</A></FONT><BR>
<!-- TOC_BEGIN -->
<FONT SIZE=2><A HREF="#toc_kx1624_1">Schedule 4.2(a) ALLIANT COMPLIANCE WITH ENVIRONMENTAL LAWS</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_kx1624_2">Schedule EA 4.2(a) Compliance With Environmental Laws</A></FONT><BR>

<!-- TOC_BEGIN -->
<FONT SIZE=2><A HREF="#toc_kz1624_1">4.2(b)(1) ALLIANT ENVIRONMENTAL PERMITS ISSUED</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_kz1624_2">Schedule EA 4.2(b)(1) Issued Permits</A></FONT><BR>

<!-- TOC_BEGIN -->
<FONT SIZE=2><A HREF="#toc_la1624_1">Schedule 4.2(b )(2) ALLIANT COMPLIANCE WITH PERMITS</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_la1624_2">Schedule 4.2(b)(2) Compliance with Permits</A></FONT><BR>

<!-- TOC_BEGIN -->
<FONT SIZE=2><A HREF="#toc_lc1624_1">Schedule 4.2(c) EXISTING CLAIMS ASSERTED OR THREATENED WITH RESPECT TO ALLIANT</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_lc1624_2">Schedule EA 4.2(c) Existing Claims</A></FONT><BR>
<!-- SEQ=,FILE='QUICKLINK',USER=CSTCLAI,SEQ=,EFW="2112669",CP="ALLIANT TECHSYSTEMS INC.",DN="2" -->
<!-- TOCEXISTFLAG -->
</BODY>
</HTML>

</TEXT>
</DOCUMENT>
