PROMISSORY NOTE
Date: November ___, 1997
On March 31, 1998, I promise to pay to the order of Alliant Techsystems
Inc. (the 'Corporation') the sum of ____________________________________Dollars
($__________________) with interest at a rate per annum equal to the greater of
(a) 6% or (b) the 'applicable federal rate' in effect on the date hereof for
loans of such maturity, as determined by Section 1274(d) of the Internal Revenue
Code.
There has been given as collateral for the payment of this Promissory
Note the number of shares of the Common Stock of the Corporation described in
the Stock Pledge Agreement between the Corporation and the undersigned dated as
of the date hereof.
This Promissory Note is evidence of an indebtedness incurred by the
undersigned in connection with a loan to the undersigned by the Corporation
pursuant to the terms of the Alliant Techsystems Inc. LSAR Option Loan Program
(the 'Program'). This Promissory Note is subject to the terms and provisions
of, and is entitled to the benefits of, the Program.
Signature: _______________________________
Print Name: _______________________________
STOCK PLEDGE AGREEMENT
(SECURITY AGREEMENT)
This Agreement, dated as of November ___, 1997, is governed by the
Uniform Commercial Code of the State of Minnesota.
Borrower's Name:
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Address:
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Secured Party: Alliant Techsystems Inc.
600 Second Street N.E.
Hopkins, MN 55343
1. In this Agreement, the words 'I,' 'me,' and 'my' mean the Borrower,
and the words 'you' and 'your' mean the Secured Party.
2. I agree to give you a security interest in my property described
below, which is called 'Collateral.' The Collateral covered by your security
interest is the following number of shares of Alliant Techsystems Inc. common
stock, which are being issued in connection with my exercise of an employee
stock option, and the stock certificates for which you may direct your transfer
agent to deliver to you to hold: ______________. Any proceeds from the sale of
Collateral are also part of the Collateral.
3. By granting you a security interest in the Collateral, I intend to
provide you with security for payment of any amounts I may owe you under the
Promissory Note (the 'Promissory Note') dated the same date as this Agreement,
which is evidence of my indebtedness to you in connection with a loan to me by
you under the Alliant Techsystems Inc. LSAR Option Loan Program (the 'Program').
4. If I don't repay any amounts I may owe you under the Promissory Note
you can take the Collateral and sell it as described below. The rights and
obligations you and I have under this Agreement also include the rights and
obligations you and I have under the Promissory Note and the Program.
5. I agree to help you do all that is necessary to protect your security
interest in the Collateral.
6. I am using the money you are lending me to buy the Collateral. You
have what is called a 'purchase money security interest' in the Collateral.
This may give you more protection against others who might claim the Collateral
is theirs.
7. I own the Collateral and no one else has any interest in it or claim
against it. I agree not to give it as security to anyone else until I have paid
you all amounts I owe you under the Promissory Note.
8. I agree that without giving me any advance notice, you can require me
to pay all amounts I owe you under the Promissory Note at once if I break any
promise made under this Agreement or the Promissory Note.
9. I will be in default if:
- I don't pay any amount I owe you under the Promissory Note when it
is due.
- I break any promise I have made to you in this Agreement or the
Promissory Note.
- I become insolvent or file a petition in bankruptcy or a petition in
bankruptcy is filed against me.
- I grant a security interest in the Collateral to someone else.
- I die or become incompetent.
10. If I am in default, you can:
- sell as much of the Collateral as is necessary to provide you with
proceeds that will at least equal the amounts I own you under the
Promissory Note, or
- transfer to your ownership as much of the Collateral as has a fair
market value equal to the amounts I owe you under the Promissory
Note.
If the sale proceeds or fair market value of the Collateral transferred to your
ownership are not enough to pay all of the amounts I owe you under the
Promissory Note, I still will have to pay the difference, plus interest at the
rate described in the Promissory Note. If you sell or transfer to your
ownership less than all of the Collateral as described above, you will return to
me the remaining Collateral and any left over proceeds.
11. Because you excuse one default by me does not mean that later
defaults will be excused.
12. You also have the rights and remedies regarding possession, retention
and sale of the Collateral and use of the proceeds as are permitted by the
Uniform Commercial Code.
13. You are authorized to file a Financing Statement.
14. I've read this Agreement and received a copy. I understand it
contains all my rights and responsibilities. No oral statements will be
binding. All changes must be approved by you in writing. My heirs and legal
representatives will also be responsible under this Agreement.
Date: November ___, 1997
ALLIANT TECHSYSTEMS INC.
-------------------------------- By:
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Name: Name:
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Borrower Title:
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Secured Party
Promissory Note - Alliant Techsystems Inc.
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