ECONOMIC VALUE ADDED BONUS PLAN
FOR
EXECUTIVE OFFICERS
AND
SENIOR MANAGERS

Effective February 27, 1995
as Amended August 24, 1999, August 21, 2001, October 23, 2001 and
May 20, 2003

ECONOMIC VALUE ADDED BONUS PLAN
FOR
EXECUTIVE OFFICERS
AND
SENIOR MANAGERS

TABLE OF CONTENTS

Page

I. Plan Objectives 1

II. Plan Administration 1

III. Definitions 1

IV. Eligibility 4

V. Individual Participation Levels 5

VI. Performance Factors 5

VII. Change in Status During Plan Year 8

VIII. Bonus Paid and Bonus Bank 9

IX. Administrative Provisions 13

X. Miscellaneous 14

Exhibit A

I. PLAN OBJECTIVES

A. To promote the maximization of shareholder value over the long
term by providing incentive compensation to key employees of
STRATTEC SECURITY CORPORATION (the "Company") in a form which
is designed to financially reward participants for an increase
in the value of the Company.

B. To provide competitive levels of compensation that enable the
Company to attract and retain employees who can have a
positive impact on the economic value of the Company.

C. To encourage teamwork and cooperation in the achievement of
Company goals.

II. PLAN ADMINISTRATION

The Compensation Committee of the Company's Board of Directors (the
"Compensation Committee") shall be responsible for the design,
administration, and interpretation of the Plan.

III. DEFINITIONS

A. "Accrued Bonus" means the bonus, which may be negative or
positive, which is calculated in the manner set forth in
Section V.A.

B. "Actual EVA" means the EVA as calculated for the relevant Plan
Year.

C. "Capital" means the Company's average monthly net operating
capital employed for the Plan Year, calculated as follows:

Current Assets

- Current Interest Bearing Assets

+ Bad Debt Reserve

+ LIFO Reserve

- Future Income Tax Benefits

- Current Noninterest-Bearing Liabilities

+ Property, Plant, Equipment, (Net)

- Construction in Progress

(+/-) Unusual Capital Items

D. "Capital Charge" means the deemed opportunity cost of
employing Capital in the Company's business, determined as
follows:

Capital Charge = Capital x Cost of Capital

E. "Company" means STRATTEC SECURITY CORPORATION. The Company's
Compensation Committee may act on behalf of the Company with
respect to this Plan.

F. "Cost of Capital" means the weighted average of the cost of
equity and the after tax cost of debt for the relevant Plan
Year. The Cost of Capital will be determined by the
Compensation Committee prior to each Plan Year, consistent
with the following methodology:

(a) Cost of Equity = Risk Free Rate + (Business Risk
Index x Average Equity Risk Premium)

(b) Debt Cost of Capital = Debt Yield x (1 - Tax Rate)

(c) The weighted average of the Cost of Equity and the
Debt Cost of Capital is determined by reference to
the expected debt-to-capital ratio

where the Risk Free Rate is the average daily closing yield
rate on 10 year U.S. Treasury Bonds for an appropriate period
(determined by the Compensation Committee from time to time)
preceding the relevant Plan Year, the Business Risk Index is
determined by reference to an auto supply industry factor
selected by the Compensation Committee, the Average Equity
Risk Premium is 6%, the Debt Yield is the weighted average
yield of all borrowing included in the Company's permanent
capital, and the tax rate is the combination of the relevant
corporate Federal and state income tax rates.

The Compensation Committee will review the Cost of Capital
annually and make appropriate adjustments only if the
calculated Cost of Capital changes by more than 1% from that
used during the prior Plan Year.

G. "Earned Wages" includes all wages paid in the Plan Year,
excluding employment signing bonuses, EVA bonus payments,
reimbursement or other expense allowances, imputed income,
value of fringe benefits (cash and noncash), moving
reimbursements, welfare benefits and special payments.

H. "Economic Value Added" or "EVA" means the NOPAT that remains
after subtracting the Capital Charge, expressed as follows:

EVA = NOPAT - Capital Charge

EVA may be positive or negative.

I. Effective Date. February 27, 1995, the date as of which the
Plan first applies to the Company.

J. "EVA Leverage Factor" means the adjustment factor reflecting
deviation in the use of capital employed as a percentage of
capital employed. For purposes of this Plan, the Company's EVA
Leverage Factor is determined to be 5% of the monthly average
net operating capital employed during the prior Plan year.

K. "NOPAT" means cash adjusted net operating profits after taxes
for the Plan Year, calculated as follows:

Net Sales

- Cost of Goods Sold

(+ -) Change in LIFO Reserve

- Engineering/Selling & Admin.

(+ -) Change in Bad Debt Reserve

(+ -) Other Income & Expense excluding Interest
Income or Expense

(+ -) Other Unusual Income or Expense Items (See
Section VI. B.)

(+ -) Amortization of Unusual Income or Expense
Items

- Cash Taxes on the Above (+/- change in
deferred tax liability)

L. "Participant" means individual who has satisfied the
eligibility requirements of the Plan as provided in Section
IV.

M. "Plan Year" means the one-year period coincident with the
Company's fiscal year.

N. "Executive Officers" means those Participants designated as
Executive Officers by the Compensation Committee with respect
to any Plan Year.

O. "Senior Managers" means those Participants designated as
Senior Managers by the Compensation Committee with respect to
any Plan Year.

P. "Target EVA" means the target level of EVA for the Plan Year,
determined as follows:

Current Plan Prior Year Prior Year Expected
Year Target EVA = Target EVA + Actual EVA + Improvement
-------------------------
2

Expected Improvement will be approved by the Board of
Directors annually, based on past practice and consideration
for current relevant economic conditions. Regardless of the
above defined formula, the Current Plan Year Target EVA cannot
be less than the Expected Improvement approved by the Board of
Directors.

IV. ELIGIBILITY

A. Eligible Positions. In general, only Executive Officers and
Senior Managers selected by the Compensation Committee may be
eligible for participation in the Plan. However, actual
participation will depend upon the contribution and impact
each eligible employee may have on the Company's value to its
shareholders, as determined by the Compensation Committee.

B. Nomination and Approval. Each Plan Year, the Chairman and
President will nominate eligible employees to participate in
the Plan for the next Plan Year. The Compensation Committee
will have the final authority to select Plan participants (the
"Participants") among the eligible employees nominated by the
Chairman and President. Continued participation in the Plan is
contingent on approval of the Compensation Committee.

C. Employee Performance Requirement. Employees whose performance
is rated "Needs Improvement" on their annual performance
review will not be eligible for an EVA bonus applicable to the
year covered by such performance review. However, if the
employee so rated is subject to a performance improvement
plan, and successfully meets the requirement of the plan in
the time frame prescribed, the employee's EVA eligibility will
be reinstated, and the

EVA bonus will be paid with the next regular payroll check
following reinstatement.

V. INDIVIDUAL PARTICIPATION LEVELS

A. Calculation of Accrued Bonus. Each Participant's Accrued Bonus
will be determined as a function of the Participant's Earned
Wages, the Participant's Target Incentive Award (provided in
Section V.B., below), Company Performance Factor (provided in
Section VI.A.) and the Individual Performance Factor (provided
in Section VI.C.) for the Plan Year. Each Participant's
Accrued Bonus will be calculated as follows:

Target Company Individual
Participant's x Incentive x Performance + Performance
Earned Wages Award Factor Factor
---------------------------
2

B. Target Incentive Award. The Target Incentive Award will be
determined according to the following schedule:

Target Incentive Award
Position (% of Base Salary)
-------- ----------------------

Chairman (if also CEO of Company) 75%
President 65%
Executive Vice President 50%
Vice President 35%
Senior Managers (as specified in Exhibit A) 12%-20%

VI. PERFORMANCE FACTORS

A. Company Performance Factor Calculation. For any Plan Year, the
Company Performance Factor will be calculated as follows:

Company Performance Factor = 1.00 + Actual EVA - Target EVA
-----------------------
EVA Leverage Factor

B. Adjustments to Company Performance. When Company performance
is based on Economic Value Added or other quantifiable
financial or accounting measure, it may be necessary to
exclude significant, unusual, unbudgeted or noncontrollable
gains or losses from actual financial results in order to
measure performance properly. The Compensation Committee will
decide those items that shall be considered in adjusting
actual results. For example, some types of items that may be
considered for exclusion are:

(1) Any gains or losses which will be treated as
extraordinary in the Company's financial statements.

(2) Profits or losses of any entities acquired by the
Company during the Plan Year, assuming they were not
included in the budget and/or the goal.

(3) Material gains or losses not in the budget and/or the
goal which are of a nonrecurring nature and are not
considered to be in the ordinary course of business
Some of these would be as follows:

(a) Gains or losses from the sale or disposal of
real estate or property.

(b) Gains resulting from insurance recoveries
when such gains relate to claims filed in
prior years.

(c) Losses resulting from natural catastrophes,
when the cause of the catastrophe is beyond
the control of the Company and did not
result from any failure or negligence on the
Company's part.

C. Individual Performance Factor Calculation. Determination of
the Individual Performance Factor will be the responsibility
of the individual to whom the participant reports. This
determination will be subject to approval by the Chairman and
President (or the Compensation Committee with respect to the
Chairman and President) and shall conform with the process set
forth below:

(1) Quantifiable Supporting Performance Factors. The
Individual Performance Factor of the Accrued Bonus
calculation will be based on the accomplishment of
individual, financial and/or

other goals ("Supporting Performance Factors").
Whenever possible, individual performance will be
evaluated according to quantifiable benchmarks of
success. These Supporting Performance Factors will be
enumerated from 0 to 2.0 based on the levels of
achievement for each goal per the schedule in VI C.
(2). Provided, however, that if the quantifiable
Supporting Performance Factor is based on the Company
Performance Factor as set forth in Section VI.A.,
then the Supporting Performance Factor may be
unlimited.

(2) Non-Quantifiable Supporting Performance Factors. When
performance cannot be measured according to a
quantifiable monitoring system, an assessment of the
Participant's performance shall be made based on a
non-quantifiable Supporting Performance Factor (or
Factors). The individual to whom the participant
reports (or the Compensation Committee with respect
to the Chairman) will evaluate the Participant's
performance based on behavioral attributes and
overall performance and this evaluation will
determine the Participant's Supporting Performance
Factor (or Factors) according to the following
schedule:

Non Quantifiable Quantifiable
Supporting Supporting Supporting
Performance Rating Performance Factor Performance Rating
------------------ ------------------ ------------------

Significantly Exceeds Requirements 1.8-2.0 Significantly Exceeds Goal
Exceeds Requirements 1.4-1.7 Exceeds Goal
Meets Requirements .7-1.3 Meets Goal
Marginally Meets Requirements .3-.6 Goal Not Met, but Significant
Progress Made
Needs Improvement 0-.2
0 Goal Not Met

(3) Aggregate Individual Performance Factor. The
Individual Performance Factor to be used in the
calculation of the Accrued Bonus shall be equal to
the sum of the quantifiable and/or non-quantifiable
Supporting Performance Factor(s), divided by two as
follows:

Quantifiable Non-Quantifiable
Supporting + Supporting
Individual Performance Performance
Performance = Factor Factor
Factor -------------------------
2

Notwithstanding the foregoing, the individual to whom
the Participant reports (with the approval of the
Chairman and President or the Compensation Committee
with respect to the Chairman and President), shall
have the authority to weight the Supporting
Performance Factors, according to relative
importance. The weighting of each Supporting
Performance Factor shall be expressed as a
percentage, and the sum of the percentages applied to
all of the Supporting Performance Factors shall be
100%. The Individual Performance Factor, if weighted
factors are used, will then be equal to the weighted
average of such Supporting Performance Factors.

VII. CHANGE IN STATUS DURING THE PLAN YEAR

A. New Hires and Promotions. A newly hired employee or an
employee promoted during the Plan Year to a position
qualifying for participation (or leaving the participating
class) may accrue (subject to discretion of the Compensation
Committee) a pro rata Accrued Bonus based on Base Salary
received.

B. Discharge. An employee discharged during the Plan Year shall
not be eligible for an Accrued Bonus, even though his or her
service arrangement or contract extends past year-end, unless
the Compensation Committee determines that the conditions of
the termination indicate that a prorated Accrued Bonus is
appropriate. The Compensation Committee shall have full and
final authority in making such a determination.

C. Resignation. An employee who resigns during the Plan Year to
accept employment elsewhere (including self-employment) will
not be eligible for an Accrued Bonus, unless the Compensation
Committee determines that the conditions of the termination
indicate that a prorated Bonus is appropriate. The
Compensation Committee shall have full and final authority in
making such a determination.

D. Death, Disability and Retirement. If a Participant's
employment is terminated during a Plan Year by reason of
death, disability, or normal or early retirement under the
Company's retirement plan, a tentative Accrued Bonus will be
calculated as if the Participant had

remained employed as of the end of the Plan Year. The final
Accrued Bonus will be calculated based upon the Base Salary
received.

Each employee may name any beneficiary or beneficiaries (who
may be named contingently or successively) to whom any benefit
under this Plan is to be paid in case of the employee's death.

Each such designation shall revoke all prior designations by
the employee, shall be in the form prescribed by the
Compensation Committee, and shall be effective only when filed
by the employee in writing with the Compensation Committee
during his or her lifetime.

In the absence of any such designation, benefits remaining
unpaid at the employee's death shall be paid to the employee's
estate.

E. Leave of Absence. An employee whose status as an active
employee is changed during a Plan Year as a result of a leave
of absence may, at the discretion of the Compensation
Committee, be eligible for a pro rata Accrued Bonus determined
in the same way as in paragraph D of this Section.

F. Needs Improvement Status. Associates whose performance has
been rated Needs Improvement on their annual performance
review will not be eligible for an EVA bonus until such time
as their performance is at an acceptable level. If the
associate's performance returns to an acceptable level, the
EVA bonus that was withheld will be paid with the next
available pay period.

VIII. BONUS PAID AND BONUS BANK

All or a portion of the Accrued Bonus will be either paid to the
Participant or credited to or charged against the Bonus Bank as
provided in this Article.

A. Participants Who Are Not Executives Officers. All positive
Accrued Bonuses of Participants who are not Executive Officers
for the Plan Year shall be paid in full, less amounts required
by law to be withheld for income and employment tax purposes,
as soon as administratively feasible following the end of the
Plan Year in which the Accrued Bonus was earned. Participants
who are not Executive Officers shall not be charged or
otherwise assessed for negative

Accrued Bonuses nor shall such Participants have any portion
of their Accrued Bonuses banked.

B. Participants Who Are Executive Officers. The Total Bonus
Payout to Participants who are Executive Officers for the Plan
Year shall be as follows:

Total Bonus Payout = [Accrued Bonus - Extraordinary Bonus
Accrual] + Bank Payout

The Total Bonus Payout for each Plan Year, less amounts
required by law to be withheld for income tax and employment
tax purposes, shall be paid as soon as administratively
feasible following the end of the Plan Year in which the
Accrued Bonus was earned.

C. Establishment of a Bonus Bank. To encourage a long term
commitment to the enhancement of shareholder value by
Executive Officers, "Extraordinary Bonus Accruals" shall be
credited to an "at risk" deferred account ("Bonus Bank") for
each such Participant, and all negative Accrued Bonuses shall
be charged against the Bonus Bank, as determined in accordance
with the following:

1. "Bonus Bank" means, with respect to each Executive
Officer, a bookkeeping record of an account to which
Extraordinary Bonus Accruals are credited, and
negative Accrued Bonuses debited as the case may be,
for each Plan Year, and from which bonus payments to
such Executive Officers are debited.

2. "Bank Balance" means, with respect to each Executive
Officer, a bookkeeping record of the net balance of
the amounts credited to and debited against such
Executive Officer's Bonus Bank. The Bank Balance
shall initially be equal to zero.

3. "Extraordinary Bonus Accrual" shall mean the amount
of the Accrued Bonus for any year that exceeds 1.25
times the portion of the Executive Officer's Base
Salary which is represented by the Target Incentive
Award in the event that the beginning Bank Balance is
positive or zero, and .75 times the portion of the
Executive Officer's Base Salary which is represented
by the Target Incentive Award in the event that the
beginning Bank Balance is negative.

4. Annual Allocation. Each Executive Officer's
Extraordinary Bonus Accrual or negative Accrued Bonus
is credited or debited to the Bonus Bank maintained
for that Executive Officer. Such Annual Allocation
will occur as soon as administratively feasible after
the end of each Plan Year. Although a Bonus Bank may,
as a result of negative Accrual Bonuses have a
deficit, no Executive Officer shall be required, at
any time, to reimburse his/her Bonus Bank.

5. "Available Balance" means the Bank Balance at the
point in time immediately after the Annual Allocation
has been made.

6. "Payout Percentage" means the percentage of the
Available Balance that may be paid out in cash to the
Participant. The Payout Percentage will equal 33%.

7. "Bank Payout" means the amount of the Available
Balance that may be paid out in cash to the Executive
Officer for each Plan Year. The Bank Payout is
calculated as follows:

Bank Payout = Available Balance x Payout Percentage

The Bank Payout is subtracted from the Bank Balance.

8. Treatment of Available Balance Upon Termination

(a) Resignation or Termination With Cause.
Executive Officers leaving voluntarily to
accept employment elsewhere (including
self-employment) or who are terminated with
cause will forfeit their Available Balance.

(b) Retirement, Death, Disability or Termination
Without Cause. In the event of an Executive
Officer's normal or early retirement under
the STRATTEC SECURITY CORPORATION Retirement
Plan, death, disability, or termination
without cause, the Available Balance, less
amounts required by law to be withheld for
income tax and employment tax purposes shall
be paid to the Executive Officer as soon as
administratively feasible following the end
of the Plan Year in which the termination
for one of such events occurred.

1. The willful and continued failure
of a Participant to perform
substantially the Participant's
duties with the Company or one of
its affiliates (other than any such
failure resulting from incapacity
due to physical or mental illness),
after a written demand for
substantial performance is
delivered to the Participant by the
Board or the Chief Executive
Officer of the Company which
specifically identifies the manner
in which the Board or Chief
Executive Officer believes that the
Participant has not substantially
performed the Participant's duties,
or

2. The willful engaging by the
Participant in illegal conduct or
gross misconduct which is
materially and demonstrably
injurious to the Company.

For purposes of this provision, no
act or failure to act, on the part
of the Participant, shall be
considered "willful" unless it is
done, or omitted to be done, by the
Participant in bad faith or without
reasonable belief that the
Participant's action or omission
was in the best interests of the
Company. Any act, or failure to
act, based upon authority given
pursuant to a resolution duly
adopted by the Board or upon the
instructions of the Chief Executive
Officer or a senior officer of the
Company or based upon the advice of
counsel for the Company shall be
conclusively presumed to be done,
or omitted to be done, by the
Participant in good faith and in
the best interests of the Company.
The cessation of employment of the
Participant shall not be deemed to
be for cause unless and until there
shall have been delivered to the
Participant a copy of a resolution
duly adopted by the affirmative
vote of not less than
three-quarters of the entire
membership of the Board at a
meeting of the Board called and
held for such purpose (after
reasonable notice is provided to
the

Participant and the Participant is
given an opportunity, together with
counsel, to be heard before the
Board), finding that, in the good
faith opinion of the Board, the
Participant is guilty of the
conduct described in subparagraph
(I) or (ii) above, and specifying
the particulars thereof in detail.

IX. ADMINISTRATIVE PROVISIONS

A. Amendments. The Compensation Committee or full Board of
Directors of the Company shall have the right to amend or
restate the Plan at any time from time to time. The Company
reserves the right to suspend or terminate the Plan at any
time. No such modification, amendment, suspension, or
termination may, without the consent of any affected
participants (or beneficiaries of such participants in the
event of death), reduce the rights of any such participants
(or beneficiaries, as applicable) to a payment or distribution
already earned under Plan terms in effect prior to such
change. The provisions of the Plan as in effect at the time of
a Participant's termination of employment shall control as to
that Participant, unless otherwise specified in the Plan.

B. Authority to Act. The Compensation Committee or full Board of
Directors may act on behalf of the Company for purposes of the
Plan.

C. Interpretation of Plan. Any decision of the Compensation
Committee with respect to any issues concerning individuals
selected for awards, the amounts, terms, form and time of
payment of awards, and interpretation of any Plan guideline,
definition, or requirement shall be final and binding.

D. Effect of Award on Other Employee Benefits. By acceptance of a
bonus award, each recipient agrees that such award is special
additional compensation and that it will not affect any
employee benefit, e.g., life insurance, etc., in which the
recipient participates, except as provided in paragraph E.
below.

E. Retirement Programs. Awards made under this Plan shall be
included in the employee's compensation for purposes of the
STRATTEC SECURITY CORPORATION Retirement Plan and

STRATTEC SECURITY CORPORATION Employee Savings Investment
Plan.

F. Right to Continued Employment; Additional Awards. The receipt
of a bonus award shall not give the recipient any right to
continued employment, and the right and power to dismiss any
employee is specifically reserved to the Company. In addition,
the receipt of a bonus award with respect to any Plan Year
shall not entitle the recipient to an award with respect to
any subsequent Plan Year.

X. MISCELLANEOUS

A. Indemnification. The Compensation Committee shall not be
liable for, and shall be indemnified and held harmless by the
Company from any loss, cost, liability, or expense that may be
imposed upon or reasonably incurred in connection with any
claim, action, suit, or proceeding to which the Compensation
Committee may be a party by reason of any action taken or
failure to act under this Plan. The foregoing right of
indemnification shall not be exclusive of any other rights of
indemnification to which such person(s) may be entitled under
the Company's Certificate of Incorporation of By-Laws, as a
matter of law, or otherwise, or any power that the Company may
have to indemnify such person(s) or hold such person(s)
harmless.

B. Expenses of the Plan. The expenses of administering this Plan
shall be borne by the Company.

C. Withholding Taxes. The Company shall have the right to deduct
from all payments under this Plan any Federal or state taxes
required by law to be withheld with respect to such payments.

D. Governing Law. This Plan shall be construed in accordance with
and governed by the laws of the State of Wisconsin.

EXHIBIT A

The Senior Managers and corresponding Target Incentive Awards
referenced in Section V.B. are as follows:

Target Incentive Award
Senior Manager (% of Base Pay)
- -------------- ----------------------