Alliant Techsystems Inc Lsar Option Loan Program

Exhibit 10.1
ALLIANT TECHSYSTEMS INC.
LSAR OPTION LOAN PROGRAM


1. PURPOSE. The purpose of the Alliant Techsystems Inc. LSAR Option Loan Program (the "Program") is to provide financial assistance in connection with the exercise by individuals (the "Participants") of stock options (the "LSAR Options") awarded in connection with each holder's agreement to defer receipt of payment (the "Deferred Amount") for his limited stock appreciation rights at the time of the August 10, 1994 "change of control" of Alliant Techsystems Inc. (the "Company").


2. LOAN PROVISIONS.


2.1 General. The Company shall extend a loan ("Loan") to a Participant upon the exercise of an LSAR Option, subject to the terms and conditions set forth in this Section 2, if the Participant so requests at the time the Participant's LSAR Option is exercised. Notwithstanding anything to the contrary herein, the Company shall not be required to make any Loan to a Participant if the making of such Loan would (a) cause the Company to violate any covenant or similar provision in any indenture, loan agreement or other agreement, or (b) violate any applicable federal, state or local law.


2.2 Principal Amount. The maximum principal amount of any Loan shall be the sum of (a) the exercise price of the LSAR Option and (b) the withholding taxes payable upon exercise of the LSAR Option (including withholding taxes payable with respect to the Deferred Amount), less (c) the Deferred Amount.


2.3 Term. The term (the "Term") of each Loan shall begin on the date of the exercise of the LSAR Option (the "Exercise Date") and have a final maturity date of March 31, 1998, at which time the unpaid principal amount of the Loan, plus unpaid accrued interest thereon, as provided in Section 2.4, shall be due and payable in full. A Participant may prepay any portion of a Loan at any time. All prepayments shall first be applied to pay accrued interest through the date of the prepayment and then to reduce the principal balance due on the Loan.


2.4 Interest. Interest on the unpaid principal balance of each Loan shall accrue from the Exercise Date until the Loan is paid in full at an interest rate, compounded annually, equal to the higher of (a) six percent or (b) the "applicable federal rate" in effect on the Exercise Date for loans of such maturity, as determined by Section 1274(d) of the Internal Revenue Code. Accrued interest shall not be payable during the Term, except in connec ...