Exhibit 10.1
ALLIANT TECHSYSTEMS INC.
COMPENSATION ARRANGEMENT WITH PAUL DAVID MILLER
o Base salary
o $600,000/year ($50,000/month)
o Salary may adjust from time to time, but not annually
o Annual incentive
o $400,000/year at target; up to 200% of target for achieving
outstanding results
o Above target incentive, after tax, will be paid in stock until you
meet an ownership target of 4x base (starts FY00)
o Ownership target = 4 x $600,000/$75 = 32,000 shares at today's stock
price
o FY99 MIP incentive will be prorated and paid at "on-plan", in advance
at time of hire
o We will "true-up" this incentive at the end of FY99
o $400,000 x 3/12 = $100,000 (less taxes)
o Long term business performance incentive
A. Performance shares payable 3/31/00 for FY00 EPS
o Threshold: 1,000 shares for EPS = 85% of plan as of 4/1/99
o Target: 2,000 shares for EPS = plan as of 4/1/99
o Outstanding: 4,000 shares for EPS = 125% of plan as of
4/1/99
B. Performance shares payable 3/31/01 for average FY00 and FY01 EPS
o Threshold: 1,000 shares for average EPS = 85% of plan as of
4/1/99
o Target: 2,000 shares for average EPS = plan as of 4/1/99
o Outstanding: 4,000 shares for average EPS = 125% of plan as
of 4/1/99
C. Future annual performance share grants
o Stock options
o 150,000 non-qualified stock options
o Priced as of the grant date
o Vesting 1/3 per year over 3 years
o No additional stock option grants for 3 years
o Flexible perquisites
o Up to $15,000 per year in quarterly reimbursements of
qualifying expenses
o No tax gross-up
o Gross expenses are reimbursed at net amount
o For qualifying items such as
o First class upgrade
o Airline "club" membership
o Spouse travel
o Car purchase/lease
o Staff entertainment
o Home security
o Home computer
o Financial counseling
o $15,000 first year; $10,000 subsequent years
o Direct payment to vendor(s)
o Plus tax gross-up
o Life Insurance
o Company provided "basic" life insurance at 1.5 (base + incentive)
o $1,500,000 death benefit
o Or any lesser amount, at your election
o Income Security Plan
o Provides 3 years of income protection subsequent to a change of
control
o Full relocation, including Home Purchase Option Program to cover your move
to Minnesota.
o Full relocation, including Home Purchase Option Program to cover your move
from Minnesota at the end of your service to Alliant, including loss on
sale up to 5% of the purchase price of the Minnesota home.
o All Alliant Techsystems Inc. employee benefits
o Cash balance defined benefit plan - vests in 5 years
o 401k with 50% match on first 4% contribution - immediately vests
o Supplemental insurances at group rates
o Long term disability insurance at group rates
o HealthPartners Minneapolis health care plan at group rates
o Vacation: Starting balance = 10 days; Accruing at 15 days per year;
subject to plan limits