STRATTEC SECURITY CORPORATION

ECONOMIC VALUE ADDED
BONUS PLAN
FOR
NON-EMPLOYEE MEMBERS OF THE
BOARD OF DIRECTORS

Effective June 30, 1997
as Amended August 21, 2001, October 23, 2001 and
May 20, 2003

STRATTEC SECURITY CORPORATION

ECONOMIC VALUE ADDED
BONUS PLAN
FOR
NON-EMPLOYEE MEMBERS OF THE
BOARD OF DIRECTORS

TABLE OF CONTENTS

Page

I. Plan Objectives 1

II. Plan Administration 1

III. Definitions 1

IV. Eligibility 4

V. Individual Participation Levels 4

VI. Performance Factors 4

VII. Change in Status During Plan Year 5

VIII. Bonus Payment 6

IX. Administrative Provisions 6

X. Miscellaneous 7

I. PLAN OBJECTIVES

A. To promote the maximization of shareholder value over the long
term by providing incentive compensation to non-employee
members of the Board of Directors 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 people who can have a positive
impact on the economic value of the Company to its
shareholders.

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

II. PLAN ADMINISTRATION

The Chairman & C.E.O. of the Company shall be responsible for the
design, administration, and interpretation of the Plan.

III. DEFINITIONS

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

B. " Bonus" means the bonus which is calculated in the manner set
forth in Section V.A.

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
Chairman & C.E.O., or his/her designee may act on behalf of
the Company with respect to this Plan.

F. "Compensation Committee" means the Compensaiton Committee of
the Board of Directors, which among other duties, is
responsible for administering the EVA Plan for the Company's
Officers and Senior Managers.

G.. "Cost of Capital" means the weighted average of the cost of
equity and the after tax cost of debt for the relevant Plan
Year. For the purpose of this Plan, the Cost of Capital will
be the same as that determined (to the nearest tenth of a
percent) by the Compensaiton Committee prior to each Plan Year
for the Executive Officer and Senior Managers EVA Plan,
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.

H. "Earned Wages" includes all cash compensation paid in the Plan
Year.

I. "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.

J. Effective Date. June 30, 1997, the date as of which the Plan
first applies to the Company.

K. "EVA Leverage Factor" means the adjustment factor reflecting
deviation in the use of capital expressed as a percentage of
net operating 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.

L. "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

(+ -) Amortization of Unusual Income or Expense
Items

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

M. Participant. Any individual who has satisfied the eligibility
requirements of the Plan as provided in Section IV.

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

O. "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

Members of the Company's Board of Directors who are not regular
full-time employees of the Company are the only individuals eligible to
participate in this Plan.

V. INDIVIDUAL PARTICIPATION LEVELS

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

Target Company
Participant's x Incentive x Performance
Earned Wages Award Factor

B. Target Incentive Award. The Target Incentive Award for all
non-employee Directors will be 40% of Earned Wages.

VI. PERFORMANCE FACTOR

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, it may be necessary to
exclude significant, unusual, unbudgeted or noncontrollable
gains or losses from actual financial results in order to
properly measure performance. The Chairman & C.E.O. 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.

VII. CHANGE IN STATUS DURING THE PLAN YEAR

A. New Board Members. A newly appointed or elected non-employee
Director will accrue a pro rata Bonus based on Earned Wages
received during the first Plan Year in which that Director
joins the Board of Directors.

B. Removal. A non-employee Director removed from the Board of
Directors by due process during the Plan Year shall not be
eligible for a Bonus.

C. Resignation. A non-employee Director who resigns during the
Plan Year will be eligible for a pro rata Bonus based on
Earned Wages received.

D. Death, Disability and Retirement. If a non-employee Director
ceases to function as a member of the Board of Directors
during a Plan Year by reason of death or disability, a
tentative Bonus will be calculated as if the Participant had
remained an active member of the Board as of the end of the
Plan Year. The final Bonus will be calculated based upon the
Earned Wages received.

Each non-employee Director 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 non-employee Director's death.

Each such designation shall revoke all prior designations by
the non-employee Director, shall be in the form prescribed by
the Compensation Committee, and shall be effective only when
filed by the non-employee Director in writing during his or
her lifetime with the Chairman & C.E.O.

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

E. Leave of Absence. A non-employee Director whose status as an
active Board Member is changed during a Plan Year as a result
of a leave of absence may, at the discretion of the Chairman &
C.E.O., be eligible for a pro rata Bonus determined in the
same way as in paragraph D of this Section.

VIII. BONUS PAYMENT

All positive Bonuses of Participants for the Plan Year shall be paid in
full as soon as administratively feasible following the end of the Plan
Year in which the Bonus was earned.

IX. ADMINISTRATIVE PROVISIONS

A. Amendments. The Chairman & C.E.O. 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.

B. Authority to Act. The Chairman & C.E.O. (or in his or her
absence, the President & C.O.O.) may act on behalf of the
Company for purposes of the Plan.

C. Interpretation of Plan. Any decision of the Chairman & C.E.O.
with respect to any issues concerning, 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. Reporting Compliance. Awards made under this Plan shall be
included in the employee's compensation for purposes of
Securities & Exchange Commission required reporting.

E. Right to Continued Employment; Additional Awards. The receipt
of a bonus award shall not give the recipient any right to
continued membership on the Company's Board of Directors. 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 Chairman & C.E.O. (or any Company officer
designated to act in the Chairman's behalf) 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 Chairman &
C.E.O., President & C.O.O. and/or 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 them or hold them harmless.

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

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