Exhibit 10.53

 

JOINDER AGREEMENT,

SECOND AMENDMENT AND SUPPLEMENT  

TO AMENDED AND RESTATED CREDIT AGREEMENT

 

THIS JOINDER AGREEMENT, SECOND AMENDMENT AND SUPPLEMENT TO AMENDED AND RESTATED
CREDIT AGREEMENT (this “Amendment”) is made and entered into this 13th day of
November, 2007, by and among REMINGTON ARMS COMPANY, INC., a Delaware
corporation and successor by merger to RA Factors, Inc., a Delaware corporation,
as the existing borrower (“Remington”); and RA BRANDS, L.L.C., a Delaware
limited liability company (“Brands”), as the new borrower (Remington and Brands
hereafter referred to as “Borrowers”, and each individually as a “Borrower”);
WACHOVIA BANK, NATIONAL ASSOCIATION, a national banking association with an
office at 301 South College Street, Charlotte, North Carolina 28288, in its
capacity as administrative and collateral agent (together with its successors in
such capacity, “Agent”) for various financial institutions (“Lenders”); and such
Lenders.

 

Recitals:

Agent, Lenders and Remington are parties to a certain Amended and Restated
Credit Agreement dated March 15, 2006, as amended by that certain First
Amendment to Amended and Restated Credit Agreement dated May 31, 2007 (as at any
time amended, restated, modified or supplemented, the “Credit Agreement”),
pursuant to which Agent and Lenders have made certain revolving credit loans to
Remington.

Remington has requested that Agent and Lenders agree to permit a single proposed
Acquisition by Remington or any of its Subsidiaries occurring on or before
January 31, 2008 in addition to those acquisitions currently constituting
Permitted Acquisitions under the Credit Agreement.

Remington has also requested that Agent and Lenders increase the Revolver
Commitments and provide to Borrowers a term loan based on the value of
Remington’s and Brands’ intellectual property rights. In connection with the
requested term loan, Remington has requested that the current guarantor, Brands,
be joined as a “Borrower” under the Credit Agreement. Agent and Lenders are
willing to amend the definition of “Permitted Acquisition”, increase the
Revolver Commitments, provide a term loan, and give effect to the joinder of
Brands as a Borrower under the Credit Agreement, in each case on the terms and
conditions set forth in this Amendment.

Brands is executing this Amendment to become a party to the Credit Agreement and
in order to induce Agent and Lenders to extend additional credit under the
Credit Agreement.

The parties now desire to join Brands as a Borrower, and amend and supplement
the Credit Agreement as hereinafter set forth.

NOW, THEREFORE, for TEN DOLLARS ($10.00) in hand paid and other good and
valuable consideration, the receipt and sufficiency of which are hereby
severally acknowledged, the parties hereto, intending to be legally bound
hereby, agree as follows:

1.           Definitions. All capitalized terms used in this Amendment, unless
otherwise defined herein, shall have the meaning ascribed to such terms in the
Credit Agreement.

 

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2.           Joinder of New Borrower. By its signature below and subject to the
satisfaction of the conditions set forth herein, Brands becomes a Borrower under
the Credit Agreement with the same force and effect as if originally named
therein as a Borrower, and Brands hereby agrees to all the terms and provisions
of the Credit Agreement applicable to it as a Borrower thereunder. Each
reference to “Borrower” or “Borrowers” in the Credit Agreement shall be deemed
to include Brands. Upon the effectiveness of the joinder of Brands to the Loan
Agreement, Brands shall be directly and primarily liable as a Borrower for all
of the Obligations now or hereafter owing under the Credit Agreement and the
other Credit Documents, and concurrently therewith, Brands shall without further
action cease to constitute a Subsidiary Guarantor with respect to such
Obligations under the Credit Agreement and the other Credit Documents. The
Obligations owing by Brands shall henceforth be evidenced by the Credit
Agreement and the Notes and the Subsidiary Guaranty previously executed by
Brands shall be released and of no further force or effect. The parties hereto
agree to execute and deliver such instruments, assignments or documents as are
necessary under Applicable Law to give effect to or carry out the intent and
purposes of the joinder of Brands as a Borrower and concurrent cessation of
Brands as a separate Subsidiary Guarantor.

3.           Joint and Several Liability; Borrowers’ Representative. Brands
acknowledges that it has requested Agent and Lenders to extend financial
accommodations to it and to the other Borrowers in accordance with the
provisions of the Credit Agreement, as hereby amended. In accordance with the
terms of the Credit Agreement, Brands acknowledges and agrees that it shall be
jointly and severally liable for any and all Loans and other Obligations
heretofore or hereafter made by Agent and Lenders to Brands or any of the other
Borrowers and for all interest, fees and other charges payable in connection
therewith. Brands shall be liable for, on a joint and several basis, the timely
payment by the other Borrowers of, all of the Loans and the other Obligations,
regardless of which Borrower actually may have received the proceeds of any
Loans or other extensions of credit hereunder or the amount of such Loans
received or the manner in which Agent or any Lender accounts for such Loans or
other extensions of credit on its books and records, it being acknowledged and
agreed that Loans to one Borrower inure to the mutual benefit of all Borrowers
and that Agent and Lenders are relying on the joint and several liability of
Borrowers in extending the Loans and other financial accommodations hereunder.
Brands hereby irrevocably appointsRemington, and Remington agrees to act under
the Credit Agreement as, the agent and representative of itself and Brands for
all purposes under the Credit Agreement, including requesting Borrowings,
selecting whether any Loan or portion thereof is to bear interest as a Base Rate
Loan or a Euro-Dollar Loan, and receiving account statements and other notices
and communications to Borrowers (or either of them) from Agent. Agent may rely,
and shall be fully protected in relying, on any Notice of Borrowing, Notice of
Conversion/Continuation, disbursement instructions, reports, information,
Borrowing Base Certificate or any other notice or communication made or given by
Remington, whether in its own name, on behalf of any Borrower or on behalf of
“the Borrowers”.

4.           Amendments to Credit Agreement. Subject to the satisfaction of each
of the conditions precedent set forth in Section 8 of this Amendment, the Credit
Agreement is hereby amended as follows:

(a)        By deleting the definitions of “Applicable Margin”, “Borrower and
Borrowers”, “Default Rate”, “Formula Amount”, “Inventory Formula Amount”,
“Loan”, “Minimum Availability Condition”, “Notes”, “Pro Rata”and “Revolver
Commitment” contained in Section 1.1 of the Credit Agreement and by substituting
in lieu thereof the following:

 

 

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Applicable Margin - a percentage determined on the Second Amendment Date by
reference to the immediately preceding Pricing Determination Date and on each
Pricing Adjustment Date thereafter, the Applicable Margin shall be increased or
decreased, based upon Average Excess Availability for the Fiscal Quarter ending
on such Pricing Determination Date, as set forth in the table below (but
decreased only if on the relevant Pricing Determination Date no Default or Event
of Default exists):

Tier

Average Excess Availability

Applicable Margin for Euro-Dollar Loans

Applicable Margin for

Base Rate Loans

I

Less than $22,000,000

2.00%

0.50%

II

Equal to or greater than $22,000,000 but less than $33,000,000

1.75%

0.25%

III

Equal to or greater than $33,000,000 but less than $44,000,000

1.50%

0.00%

IV

Equal to or greater than $44,000,000 but less than $55,000,000

1.25%

- 0.25%

V

Equal to or greater than $55,000,000

1.00%

- 0.50%

 

Any such increase or reduction in the Applicable Margin shall be effective on
the first day of the Fiscal Quarter following Agent’s receipt of the applicable
financial statements and corresponding Compliance Certificate (each a “Pricing
Adjustment Date”). If the financial statements and the Compliance Certificate of
Borrowers setting forth Average Excess Availability for the applicable period
are not received by Agent by the date required pursuant to Section  10.1.3 of
this Agreement, the Applicable Margin shall be determined as if Average Excess
Availability is less than $22,000,000 until such time as such financial
statements and Compliance Certificate are received and any Event of Default
resulting from a failure to timely deliver such financial statements or
Compliance Certificate is waived in writing by Agent and Lenders in their sole
discretion; provided, however, that nothing herein shall be deemed to prevent
Agent and Lenders from charging interest at the Default Rate for so long as an
Event of Default exists. In the event that any financial statement or Compliance
Certificate delivered by Borrowers is shown to be inaccurate (whether such
inaccuracy is discovered at any time during the effectiveness of this Agreement
or up to six months thereafter), and such inaccuracy, if corrected, would have
led to the application of a higher Applicable Margin for any period (an
“Applicable Period”) than the Applicable Margin applied for such Applicable
Period, then (i) Borrowers

 

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shall immediately deliver to Agent a correct Compliance Certificate for such
Applicable Period, (ii) the Applicable Margin for such Applicable Period shall
be deemed to be the Applicable Margin that would have been in effect for such
Applicable Period had the financial statement or Compliance Certificate
delivered by Borrowers not contained the inaccuracy, and (iii) Borrowers shall
immediately pay to Agent the accrued additional interest owing as a result of
such increased Applicable Margin for such Applicable Period, which payment shall
be promptly applied by the Agent in accordance with the terms of this Agreement.
Neither the recalculation of the Applicable Margin for such an Applicable
Period, nor the payment by Borrowers of the accrued additional interest required
hereunder, shall limit the rights of Agent and Lenders with respect to their
ability to charge interest at the Default Rate, or to declare any Event of
Default or exercise any of their remedies during the existence of such an Event
of Default.

 

Borrower and Borrowers - shall mean each of (a) Remington, (b) on and after the
Second Amendment Date, Brands, and (c) any other entity which becomes a borrower
under this Agreement from time to time pursuant to a joinder agreement in form
and substance satisfactory to Agent and approved by Remington.

 

Default Rate - on any date, a rate per annum that is equal to (i) in the case of
each Revolver Loan outstanding on such date and the principal balance of Term
Loans outstanding on such date, 2% in excess of the rate otherwise applicable to
such Loans on such date, and (ii) in the case of any other Obligations
outstanding on such date, 3.25% in excess of the Alternate Base Rate in effect
on such date.

 

Formula Amount - on any date of determination thereof, an amount equal to the
lesser of (a) (i) the sum of the Inventory Formula Amount and the Accounts
Formula Amount on such date, minus (ii) the Availability Reserve on such date,
or (b) the sum of (i) the amount on such date that constitutes “Permitted
Indebtedness” under clause (i) of the definition of that term in the New Senior
Notes Indenture as in effect on January 24, 2003 plus (ii) the amount of
Obligations that Borrowers would be permitted to incur hereunder on such date
under clause (xiv) of the definition of “Permitted Indebtedness” without causing
a breach or violation of the New Senior Notes Indenture as in effect on January
24, 2003, minus (iii) the outstanding principal balance of the Term Loan on such
date.

 

Inventory Formula Amount - on any date of determination thereof, an amount equal
to the least of (i) $77,500,000, (ii) the sum derived by multiplying the
Applicable Inventory Percentage by the Value of Eligible Inventory consisting of
Finished Goods and the Applicable Inventory Percentage by the Value of Eligible
Inventory consisting of Raw Materials, or (iii) the Appraised NOLV as of such
date.

 

 

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Loan - all or any portion of a Revolver Loan or a Term Loan Advance (and each
Base Rate Loan and Euro-Dollar Loan comprising such Loan).

 

Minimum Availability Condition - on any date of determination, Excess
Availability of not less than $27,500,000.

 

Notes - each Revolver Note, each Term Note, the Settlement Note and any other
promissory note executed by Borrowers at Agent’s request to evidence any of the
Obligations.

 

Pro Rata - with respect to any Lender on any date, a percentage (expressed as a
decimal, rounded to the ninth decimal place) derived by dividing the amount of
the total Commitments of such Lender on such date by the aggregate amount of the
Commitments of all Lenders on such date (regardless of whether or not any of
such Commitments have been terminated on or before such date).

 

Revolver Commitment - at any date for any Lender, the obligation of such Lender
to make Revolver Loans and to participate in LC Obligations pursuant to the
terms and conditions of this Agreement, which shall not exceed the principal
amount set forth opposite such Lender’s name under the heading “Revolver
Commitment” on the signature pages hereof (or any amendment hereto to the extent
provided therein) or the signature page of the Assignment and Acceptance by
which it became a Lender, as modified from time to time pursuant to the terms of
this Agreement or to give effect to any applicable Assignment and Acceptance;
and “Revolver Commitments” means the aggregate principal amount of the Revolver
Commitments of all Lenders, the maximum amount of which shall not exceed
$155,000,000 on the Second Amendment Date but which shall be reduced in
accordance with the terms of Section  2.1.6 hereof.

 

(b)        By adding the following new definitions of “2007 Permitted
Acquisition”, “Commitment”, “Second Amendment Date”, “Term Loan”, “Term Loan
Advance”, “Term Loan Commitment” and “Term Note” to Section 1.1 of the Credit
Agreement in proper alphabetical sequence:

 

2007 Permitted Acquisition - a single Acquisition by Remington or any of its
Subsidiaries occurring after the Second Amendment Date but on or before January
31, 2008, so long as each of the following additional conditions are satisfied
prior to or simultaneously with such Acquisition in form and substance
satisfactory to Agent:

 

(1)         No Default or Event of Default. No Default or Event of Default
occurs or exists on the date of such Acquisition and no default or event of
default exists on any other Debt or Material Contract of Remington, Brands or
the Person that is the subject of the Acquisition (the “Target Company”) on the
date of such Acquisition.

 

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(2)         Aggregate Consideration. Agent shall have approved the amount of the
aggregate consideration paid by Borrowers and/or any of their
Subsidiaries (including the assumption of any Debt) in connection with such
Acquisition, such approval not to be unreasonably withheld or delayed; provided
that in no event shall such aggregate consideration exceed $60,000,000.

(3)         Financial Information. Agent shall have received all financial
information, projections, budgets, business plans, cash flows and such other
information as Agent shall request from time to time with respect to Remington,
Brands and the Target Company, including, without limitation, (A) projected
monthly balance sheets, income statements, statements of cash flows and
availability of Remington, Brands and the Target Company for the periods through
the end of the 2007 and 2008 fiscal years of Remington, Brands and the Target
Company, (B) projected annual balance sheets, income statements, statements of
cash flows and availability of Remington, Brands and the Target Company through
the end of the 2007 and 2008 fiscal years of Remington, Brands and the Target
Company, in each case as to the projections described in clauses (A) and (B),
with the results and assumptions set forth in all of such projections, and an
opening pro forma balance sheet for Remington, Brands and the Target Company
and, (C) any updates or modifications to the projected financial statements
previously received by Agent, and (D) current agings of receivables, current
perpetual inventory records and/or rollforwards of accounts and inventory
through the Second Amendment Date, together with supporting documentation.

(4)         Due Diligence. Agent and Lenders shall have completed their business
and legal due diligence with respect to Remington, Brands and the Target
Company, with results satisfactory to Agent and Lenders, including (i) receipt
and review of a summary of the final terms of such Acquisition, including,
without limitation, the anticipated impact on Remington’s capital structure and
the proposed source of funding for, and use of proceeds of, such Acquisition,
and(ii) field examinations of the business and collateral of Remington, Brands
and the Target Company in accordance with Agent’s customary procedures and
practices and as otherwise required by the nature and circumstances of the
businesses of Remington, Brands and the Target Company (the “Acquisition Field
Exams”), and Agent and Lenders shall be satisfied with the corporate and capital
structure and management of Remington, Brands and the Target Company both prior
to and after giving effect to such Acquisition, and with all legal, tax,
accounting and other matters relating to Remington, Brands and the Target
Company.

(5)         Joinder Agreement, Notes and Security Documents. Agent shall have
received a joinder agreement providing for the joinder of the Target Company as
a Borrower, the Notes, in each case

 

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conforming to the requirements of the Credit Agreement, a security agreement,
and such other Security Documents (including, without limitation, any pledge
agreements or supplements) as may be required by Agent, and executed by a duly
authorized officer of each Borrower, pursuant to which the Target Company shall
grant a security interest in all or substantially all of its assets to secure
the Obligations of the Target Company as a Borrower under the Credit Agreement,
as amended by this Amendment.

(6)         Availability. Agent shall have determined, and Lenders shall be
satisfied, that, after giving effect to such Acquisition, Availability is not
less than $27,500,000.

(7)         Evidence of Perfection and Priority of Liens. Agent shall have
received confirmation that all UCC-1 financing statements and other Security
Documents required to be filed or recorded to perfect the Liens of Agent in
Collateral of the Target Company (excluding only Intellectual Property which is
registered in countries other than the United States) have been filed or
delivered to Agent and evidence that such Liens will constitute valid and
perfected security interests and Liens, and that there are no other Liens upon
Collateral except for Permitted Liens.

(8)         Lien Payoff Documentation, Lien Releases. Agent shall have received
all releases, terminations and such other documents as Agent may request to
evidence and effectuate the termination by the existing lenders (if any) to the
Target Company of their respective financing arrangements with the Target
Company and the termination and release by it or them, as the case may be, of
any interest in and to any assets and properties of the Target Company acquired
pursuant to the Acquisition.

(9)         Cash Management System. The Target Company shall have established a
cash management system, including blocked accounts for collections of the
accounts receivable of the Target Company, and the transfer of such collections
to Agent, and subject to control agreements by the banks at which such accounts
are maintained.

(10)        Organization Documents. Agent shall have received a copy of the
Organization Documents of the Target Company, and all amendments thereto,
certified by the Secretary of State or other appropriate officials of the
jurisdiction of the Target Company’s state of organization.

(11)        Good Standing Certificates. Agent shall have received good standing
certificates for the Target Company, issued by the Secretary of State or other
Governmental Authority of the Target Company’s jurisdiction of organization.

 

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(12)        Insurance. Agent shall have received certified copies of the
casualty insurance policies of the Target Company with respect to Collateral and
business interruption insurance policies, together with loss payable
endorsements on Agent’s standard form of loss payee endorsement naming Agent as
loss payee with respect to each such policy and certified copies of the Target
Company’s liability insurance policies, including product liability policies,
together with endorsements naming Agent as an additional insured, all as
required by the Credit Documents.

(13)        No Material Adverse Change. No material adverse change in the
business, Properties, results of operations or financial condition of the Target
Company shall have occurred in violation of the documents or instruments giving
effect to the Acquisition.

(14)        Non-Violation of New Senior Notes Indenture; Legal Opinions. Agent
shall have received and reviewed an opinion letter from Borrowers’ and
Guarantors’ counsel that the Acquisition and the Target Company’s joinder to the
Credit Agreement as a Borrower does not violate the New Senior Notes Indenture,
and a certificate from one or more officers of Borrowers and Guarantors to that
effect.

(15)        Acquisition Agreements. Agent shall have received duly executed
certified copies of the documents or instruments giving effect to the
Acquisition, including all exhibits and schedules thereto.

(16)        Other Agreements. Agent shall have received each additional document
or instrument reasonably requested by the Required Lenders, duly executed by the
parties thereto.

(17)        No Litigation. No action, proceeding, investigation, regulation or
legislation shall have been instituted, threatened or proposed before any court,
governmental agency or legislative body to enjoin, restrain or prohibit, or to
obtain damages in respect of, or which is related to or arises out of, this
Amendment, the Credit Agreement or any of the other Credit Documents or the
consummation of the transactions contemplated hereby or thereby.

(18) Borrowing Base Certificate. Agent shall have received the most recent
Borrowing Base Certificate required by the terms of this Agreement on or prior
to the date of the Acquisition or otherwise requested by Agent pursuant to the
terms hereof.

 

Commitment - at any date for any Lender, the aggregate amount of such Lender’s
Revolver Commitment and Term Loan Commitment on such date, and “Commitments”
means the aggregate amount of all Revolver Commitments and Term Loan Commitments
on such date.

 

Second Amendment Date - November 13, 2007.

 

 

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Term Loan - the aggregate of the Term Loan Advances made by Lenders to Borrowers
pursuant to Section  2.2.1.

Term Loan Advance - the advance made by a Lender as part of the Term Loan on
the Second Amendment Date and thereafter means such Lender’s portion of the Term
Loan.

Term Loan Commitment - at any date for any Lender, the obligation of such Lender
to make its Term Loan Advance pursuant to the terms and conditions of this
Agreement, which shall not exceed the principal amount set forth opposite such
Lender’s name under the heading “Term Loan Commitment” on the signature pages
hereof (or any amendment hereto to the extent provided therein) or the principal
amount set forth in any Assignment and Acceptance by which it became a Lender,
as modified from time to time pursuant to the terms of this Agreement or to give
effect to any applicable Assignment and Acceptance; and the term “Term Loan
Commitments” means the aggregate principal amount of the Term Loan Commitment of
each Lender, the maximum amount of which shall not exceed $25,000,000.

Term Note - as defined in Section  2.2.2.

 

(c)        By deleting the lead-in language to Section 2 of the Credit Agreement
and by substituting in lieu thereof the following:

 

Subject to the terms and conditions of, and in reliance upon the representations
and warranties made in, this Agreement and the other Credit Documents, Lenders
severally agree to the extent and in the manner hereinafter set forth to make
their respective Pro Rata shares of the Commitments available to Borrowers, in
an aggregate amount of up to $180,000,000, as follows:

 

(d)        By deleting Section 2.2 of the Credit Agreement and by substituting
in lieu thereof the following:

 

2.2

Term Loan Commitments.

2.2.1            Term Loan. Subject to and upon the terms and conditions herein
set forth, each Lender severally agrees to make to Borrowers a Term Loan Advance
in an amount not to exceed such Lender’s Term Loan Commitment. The Term Loan
shall be comprised of Term Loan Advances in the aggregate principal amount of
the Term Loan Commitment and shall be funded by Lenders on the Second Amendment
Date. The proceeds of the Term Loan Advances shall be used by Borrowers solely
for purposes for which the proceeds of the Revolver Loans are authorized to be
used. The Term Loan Commitment of each Lender shall expire on the funding by
such Lender of its Term Loan Advance. Borrowers shall not be entitled to
reborrow any amounts repaid with respect to the Term Loan Advances. All Term
Loan Advances shall bear interest as set forth in Section 3.1, shall initially
be Base Rate Loans and shall be repaid as provided in Section 5.3. Each Lender
shall make its Term Loan Advance available to Agent in

 

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immediately available funds, to such account of Agent as Agent may designate,
not later than 12:00 noon on the Second Amendment Date. After Agent’s receipt of
the proceeds of such Term Loan Advance, and upon satisfaction of the conditions
precedent set forth in Section 11, Agent shall make the proceeds of all such
Term Loan Advances available to Borrowers on the Second Amendment Date by
transferring same day funds equal to the proceeds of such Term Loan Advances
received by Agent to an account designated by Borrowers in writing.

2.2.2      Term Notes. Borrowers shall execute and deliver to Agent on behalf of
each Lender, on the Second Amendment Date, a promissory note substantially in
the form of Exhibit A-3 attached hereto and made a part hereof (such promissory
note, together with any new notes issued pursuant to Section 14.3.2 upon
the assignment of any portion of any Lender’s Term Loan Advance, being
hereinafter referred to collectively as the “Term Notes” and each of such
promissory notes being hereinafter referred to individually as a ”Term Note”),
to evidence such Lender’s Term Loan Advance to Borrowers, in the original
principal amount equal to the amount of such Lender’s Term Loan Commitment. Each
Term Note shall be dated the Second Amendment Date (or the date of the
applicable Assignment and Acceptance) and shall provide for payment of the Term
Loan Advance evidenced thereby as specified inSection 5.3.

(e)        By deleting Section 3.1 of the Credit Agreement and by substituting
in lieu thereof the following:

 

3.1

Interest.

3.1.1       Rates of Interest. Borrowers agree to jointly and severally pay
interest in respect of all unpaid principal amounts of the Revolver Loans from
the respective dates such principal amounts are advanced until paid (whether at
stated maturity, on acceleration or otherwise) at a rate per annum equal to the
applicable rate indicated below:

 

(i)         for Revolver Loans made or outstanding as Base Rate Loans, the
Applicable Margin plus the Alternate Base Rate in effect from time to time; or

 

(ii)        for Revolver Loans made or outstanding as Euro-Dollar Loans, the
Applicable Margin plus the relevant Adjusted London Interbank Offered Rate for
the applicable Interest Period selected by each Borrower in conformity with this
Agreement.

 

Borrowers agree to jointly and severally pay interest in respect of all unpaid
principal amounts outstanding with respect to Term Loan Advances from the
respective dates such principal amounts are advanced until paid (whether at
stated maturity, on acceleration, or otherwise) at a rate per annum equal to the
applicable rate indicated below:

 

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(i)         for any portion of the Term Loan Advances made or outstanding as
Base Rate Loans, 0.50% plus the Alternate Base Rate in effect from time to time;
or

 

(ii)          for any portion of the Term Loan Advances made or outstanding as
Euro-Dollar Loans, 2.00% plus the relevant Adjusted London Interbank Offered
Rate for the applicable Interest Period selected by Borrowers in conformity with
this Agreement.

Upon determining the Adjusted London Interbank Offered Rate for any Interest
Period requested by Borrowers, Agent shall promptly notify Borrowers thereof by
telephone and, if so requested by Borrowers, confirmed in writing. Such
determination shall, absent manifest error, be final, conclusive and binding on
all parties and for all purposes. The applicable rate of interest for all Loans
bearing interest based upon the Alternate Base Rate shall be increased or
decreased, as the case may be, by an amount equal to any increase or decrease in
the Alternate Base Rate, with such adjustments to be effective as of the opening
of business on the day that any such change in the Alternate Base Rate becomes
effective. Interest on each Loan shall accrue from and including the date on
which such Loan is made, converted to a Loan of another Type or continued as a
Euro-Dollar Loan to (but excluding) the date of any repayment thereof; provided,
however, that, if a Loan is repaid on the same day made, one day’s interest
shall be paid on such Revolver Loan. The Alternate Base Rate on the Closing Date
was 7.50% per annum and, therefore, the rate of interest in effect hereunder on
the Closing Date, expressed in simple interest terms, was 8.00% per annum with
respect to any portion of the Revolver Loans bearing interest as a Base Rate
Loan. The Alternate Base Rate on the Second Amendment Date is 7.25% per annum
and, therefore, the rate of interest in effect hereunder on the date hereof,
expressed in simple interest terms, is 6.75% per annum with respect to
any portion of the Revolver Loans bearing interest as a Base Rate Loan and is
7.75% per annum with respect to any portion of the Term Loan Advances bearing
interest as a Base Rate Loan.

 

(f)         By deleting Sections 5.3 and 5.4 of the Credit Agreement and by
substituting in lieu thereof the following:

 

5.3

Repayment of Term Loan Advances.

5.3.1     Payment of Principal. The principal amount of each Term Note shall be
paid in consecutive monthly installments, the first twenty-six of which shall be
in an amount equal to the Lender’s Pro Rata share of $520,800 per installment
and shall be payable on the first day of each month, commencing on May 1, 2008,
and continuing on the first day of each month thereafter, the final installment
of which shall be in an amount equal to such Lender’s Pro Rata share of the
remaining principal balance of the Term Loan and shall be payable on the
Commitment Termination Date. Each installment shall be paid to Agent for the
account and Pro Rata benefit

 

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of each Lender. Each Term Loan Advance, if not sooner paid, shall be due and
payable in full on the Commitment Termination Date.

5.3.2      Payment of Interest. Interest accrued on the Term Loan shall be due
and payable on (i) the first day of each month for the immediately preceding
month, computed through the last calendar day of the preceding month in the case
of any portion of the Term Loan that is a Base Rate Loan, (ii) the last day of
the applicable Interest Period in the case of any portion of such Term Loan that
is a Euro-Dollar Loan, and (iii) the date of any prepayment of the Term Loan.
Accrued interest shall also be paid by Borrowers as and when payable in Section 
5.3.4 in connection with any prepayment of the Term Loan and (iv) the Commitment
Termination Date. With respect to any Base Rate Loan converted into a
Euro-Dollar Loan pursuant to Section  3.1.2 on a day when interest would not
otherwise have been payable with respect to such Base Rate Loan, accrued
interest to the date of such conversion on the amount of such Base Rate Loan so
converted shall be paid on the conversion date.

5.3.3     Mandatory Prepayments. In addition to Borrowers’ obligation to pay the
entire amount of the Obligations upon the Commitment Termination Date, Borrowers
shall also be required to prepay the Term Loan Advances (and, after payment in
full thereof, the remaining Obligations then outstanding as provided in Section
5.3.5), as follows:

(i)                Borrowers shall prepay the Term Loan Advances in the amount
of Net Disposition Proceeds from dispositions of (A) Equipment unless the amount
of such Net Disposition Proceeds does not exceed $2,500,000, or (B) Intellectual
Property;

(ii)               Borrowers shall prepay the Term Loan Advances from the
proceeds of insurance or condemnation awards paid in respect of any Equipment or
Intellectual Propertyunless and to the extent Borrowers is authorized to use
such proceeds pursuant to Section  8.1.2(ii); and provided that nothing herein
shall be construed to authorize any disposition of Collateral except as
expressly elsewhere authorized by this Agreement or the other Credit Documents.

5.3.4     Optional Prepayments of Term Loan Advances. Borrowers may, at their
option, prepay any portion of the Term Loan Advances consisting of Base Rate
Loans in whole at any time or in part from time to time, in amounts aggregating
$1,000,000 or any greater integral multiple of $100,000, by paying the principal
amount to be prepaid together with interest accrued or unpaid thereon to the
date of prepayment. Any portion of the Term Loan Advances consisting of
Euro-Dollar Loans may be prepaid, at Borrowers’ option, at any time in whole or
from time to time in part, in amounts aggregating $1,000,000 or any greater
integral multiple of $100,000, together with any applicable charges pursuant to
Section 3.10 , and interest accrued or unpaid thereon to the date of prepayment.
Borrowers shall give written notice (or telephonic notice promptly confirmed in
writing) to

 

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Agent of any intended prepayment not less than 1 Business Day prior to any
prepayment of Base Rate Loans and not less than 2 Business Days prior to any
prepayment of Euro-Dollar Loans. Such notice, once given, shall be irrevocable
and, upon receipt of any such notice of optional prepayment, Agent shall
promptly notify each Lender of the contents thereof and of such Lender’s share
of the prepayment as provided in Section  5.3.5.

5.3.5     Application of Prepayments.

(i)         Except as otherwise provided in Section  5.6, each mandatory
prepayment pursuant to Section  5.3.3 shall be remitted by Borrowers to Agent
for application (i)  first to accrued interest and principal due under the Term
Notes, ratably, with amounts applied to principal installments to be applied in
the inverse order of maturities until payment in full thereof; and (ii)  second,
unless otherwise directed or agreed in writing by Agent (acting at the direction
of the Required Lenders), to repay the principal balance of Revolver Loans
outstanding (provided that any application of such prepayments to the Revolver
Loans shall, unless otherwise agreed in writing by Agent (acting at the
direction of the Required Lenders), automatically result in a corresponding
permanent reduction of the Revolver Commitments). Notwithstanding the foregoing,
if a Permitted Asset Disposition of Equipment or Intellectual Property includes
the sale or other disposition of Accounts or Inventory then a portion of the Net
Disposition Proceeds equal to the greater of (x) the net book value of such
Accounts and Inventory or (y) the amount of the reduction in the Borrowing Base
immediately after giving effect to such sale or other disposition of Accounts or
Inventory, as the case may be, shall be promptly remitted to Agent for
application to the Revolver Loans (with the application of any such prepayments
to the Revolver Loans to result in a corresponding permanent reduction of the
Revolver Commitments, unless otherwise agreed in writing by Agent (acting at the
direction of the Required Lenders)).

(ii)         Each optional prepayment of Term Loan Advances pursuant to Section 
5.3.4 shall be remitted by Borrowers to Agent and distributed by Agent to
Lenders to prepay installments of the Term Notes, in the inverse order of their
maturities, until Full Payment of the Term Notes.

(iii)        All distributions of prepayments by Agent to Lenders shall be on a
Pro Rata basis. Each Lender shall apply the portion of a prepayment that is to
be applied to principal installments first to outstanding Base Rate Loans and
then to any outstanding Euro-Dollar Loans with the shortest Interest Periods
remaining; but if application to any Euro-Dollar Loans would cause the same to
be paid prior to the end of an applicable Interest Period, then, by prior
written notice to Agent, Borrowers may elect as to such Euro-Dollar Loan to
deliver cash to Agent in the amount of the required prepayment, to be held by
Agent as Cash Collateral until the end of the applicable Interest

 

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Period, at which time Agent shall disburse such Cash Collateral to the affected
Lenders for application to such Euro-Dollar Loans.

 

5.4         Prepayments of Revolver Loans. The following provisions shall govern
Borrowers’ rights and obligations with respect to prepayment of the Revolver
Loans (with the application of such prepayments to be governed by the provisions
of Section 5.8 hereof, as applicable):

 

(a)        Except with respect to (i) sales of Inventory in the Ordinary Course
of Business of Remington, (ii) replacements of Equipment permitted pursuant to
Section 8.4.2(ii), and (iii) sales or dispositions of Equipment or Intellectual
Property permitted hereunder (including the proceeds of insurance or
condemnation awards paid in respect of any Equipment or Intellectual Property),
Borrowers shall, concurrently with the receipt by any Obligor of any Net
Disposition Proceeds from any sale or other disposition of Collateral make or
cause to be made a mandatory prepayment of the Revolver Loans, provided that
nothing herein shall be construed to authorize any disposition of Collateral
except as expressly elsewhere authorized by this Agreement or the other Credit
Documents;

 

(b)        With respect to any condemnation awards or proceeds of insurance of
the type required by Section 8.1.2(i), Borrowers shall prepay the Revolver Loans
or Term Loan, as applicable, as and to the extent required by Section 8.1.2(ii);
and

 

(c)        Prepayments of the Term Loan (whether mandatory or voluntary), and
the application thereof, shall be governed by Sections 5.3 and 5.8.

 

(g)        By deleting clause (ii) of Section 8.1.2 of the Credit Agreement and
by substituting in lieu thereof the following:

 

(ii)         Any proceeds of insurance referred to in this Section 8.1.2 and any
condemnation awards that are paid to Agent in connection with a condemnation of
Collateral shall be paid to Agent and (a) in the case of proceeds or awards that
relate to Inventory, applied first to the payment of the Revolver Loans, then to
the Term Loan, and then to any other Obligations outstanding, and (b) in the
case of proceeds or awards that relate to Equipment or Real Estate, applied
first to the Term Loan and then to any other Obligations; provided that if
requested by Borrowers in writing within 30 days after Agent’s receipt of such
proceeds relating to Equipment or Real Estate and if no Default or Event of
Default exists, Borrowers may apply such proceeds to repair or replace the
damaged or destroyed Equipment or Real Estate so long as (1) such repair or
replacement is promptly undertaken and concluded, (2) the repaired or replaced
Property is at all times free and clear of Liens other than Permitted Liens and
permits Borrowers to resume productivity comparable to Borrowers’ productivity
levels prior to the loss,

 

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and (3) the amount of proceeds from any single casualty affecting Equipment or
Real Estate does not exceed $2,500,000.

(h)             By deleting Section 8.4.4 of the Credit Agreement and by
substituting in lieu thereof the following:

8.4.4            Appraisals. Agent reserves the right, exercisable from time to
time hereafter in Agent’s credit judgment, to require each Borrower and each
Guarantor to obtain, and each Borrower and each Guarantor shall promptly obtain,
at Borrowers’ expense, appraisals or updates to existing appraisals reflecting
then current values of the Equipment, Inventory, or Intellectual Property of
Borrowers; provided, however, that unless a Default or Event of Default exists,
not more than one such appraisal of Equipment annually and not more than two
such appraisals of Inventory (not including an initial appraisal of Inventory
acquired pursuant to any Acquisition) or Intellectual Property annually shall be
conducted at Borrowers’ expense. Nothing herein shall be construed to prohibit
Agent from obtaining any such appraisal, either directly or through any Agent
Professional, and charging the cost of any such appraisal to Borrowers, subject
to the limitations hereinabove set forth.

(i)              By adding the following sentence to Section 10.2.13 of the
Credit Agreement immediately following the definition of “Permitted Acquisition”
therein:

Notwithstanding anything to the contrary set forth above, the 2007 Permitted
Acquisition  shall constitute a “Permitted Acquisition” hereunder.

 

(j)              By deleting Section 11.2.4 of the Credit Agreement in its
entirety and by substituting in lieu thereof the following:

11.2.4         No Material Adverse Effect. No event shall have occurred and no
condition shall exist that has or may be reasonably likely to have a Material
Adverse Effect; provided, that, to the extent that Revolver Loans are requested
by Borrowers in accordance with the terms of this Agreement in order to finance
the 2007 Permitted Acquisition, if any, (i) this condition shall be deemed
satisfied, and (ii) the representation and warranty set forth in the last
sentence of Section 9.1.9 that there has been no material adverse change (which
representation and warranty would be reaffirmed in connection with such Revolver
Loans) shall not be deemed breached, in each case with respect to such Revolver
Loans (and only with respect to such Revolver Loans) unless a Material Adverse
Effect occurs or exists that would otherwise constitute or result in an Event of
Default under this Agreement.

 

(k)          By deleting the references to “Revolver Loan” and “Revolver Loans”
contained in Section 1.1 of the Credit Agreement in the definitions of “Base
Rate Loan”, “Borrowing”, “Default Rate”, “Euro-Dollar Loan”, “Extraordinary
Expenses”, “Funding Account”, “Obligations”, “Required Lenders”, “Supermajority
Lenders”, and “Type”, and in Sections 1.4, 3.1.2, 3.1.3, 3.1.4, 3.5, 3.8, 4.2,
4.4, 4.5 (including the section heading thereof), 5.1,5.7.1(x), 5.9 (including
the section heading thereof),5.12, 6.1, 6.2.2, 6.2.3, 8.2.5, 9.1.11,

 

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9.1.20, 10.2.3(v), 11.1, 11.2, 11.3, 12.1.1, 12.2.1, 12.4, 12.5.2, 13.2.2, 13.4,
13.6.3, 13.7, 13.9.1, 13.10, 13.14, 13.16, 13.17, 14.2.2, 14.3.1, and 15.16 of
the Credit Agreement, and in Exhibit C to the Credit Agreement, and by
substituting in lieu thereof respectively references to “Loan” and “Loans”.

 

(l)         By deleting the references to “Revolver Commitment” and “Revolver
Commitments” contained in Section 1.1 of the Credit Agreement in the definitions
of “Required Lenders” and “Supermajority Lenders”, and in Sections 2.3.4, 3.2,
4.2, 5.6, 6.1 (including the section heading thereof), 6.2, 9.1, 10.1, 10.2,
10.3, 10.4, 12.2 (including the section heading thereof), 13.2.1, 13.4, 13.9.1,
13.13, 13.17, 14.2, 14.3.1, 14.3.2, 15.3, and 15.18 of the Credit Agreement, and
by substituting in lieu thereof respectively references to “Commitment” and
“Commitments”.

 

(m)       By deleting the reference to “Revolver Notes” contained in Section
11.1.1 of the Credit Agreement, and by substituting in lieu thereof a reference
to “Notes”.

 

(n)        By deleting each Lender’s Revolver Commitment set forth on the
signature pages to the Credit Agreement, and by substituting in lieu thereof the
Revolver Commitments and Term Loan Commitments set forth on the signature pages
to this Amendment.

 

(o)        By adding to the Credit Agreement as Exhibit A-3 thereto the Exhibit
A-3 attached to this Amendment.

 

(p)        By deleting Exhibit A-1, Exhibit A-2, Exhibit B, Exhibit C, Exhibit
D, Exhibit E, Exhibit G and Exhibit H to the Credit Agreement in their
entireties and by substituting in lieu thereof, respectively, Exhibit A-1,
Exhibit A-2, Exhibit B, Exhibit C, Exhibit D, Exhibit E, Exhibit G and Exhibit H
attached to this Amendment.

 

5.          Ratification and Reaffirmation. Each Borrower hereby ratifies and
reaffirms the Obligations, each of the Credit Documents and all of such
Borrower’s covenants, duties, indebtedness and liabilities under the Credit
Documents.

 

6.          Acknowledgments and Stipulations. Each Borrower acknowledges and
stipulates that the Credit Agreement and the other Credit Documents executed by
such Borrower are legal, valid and binding obligations of such Borrower that are
enforceable against such Borrower in accordance with the terms thereof, except
as the enforceability thereof may be limited by laws relating to Insolvency
Proceedings or other similar laws of general application affecting the
enforcement of creditors’ rights generally or by general equitable principles;
all of the Obligations are owing and payable without defense, offset or
counterclaim (and to the extent there exists any such defense, offset or
counterclaim on the date hereof, the same is hereby waived by each Borrower);
the Liens granted by such Borrower in favor of Agent are first priority Liens,
subject only to those Permitted Liens which are expressly permitted by the terms
of the Credit Documents to have priority over the Liens of Agent; and, as of the
close of business on November 2, 2007, the unpaid principal amount of the
Revolver Loans totaled $17,000,000, and the face amount of outstanding Letters
of Credit totaled $4,426,000.

7.          Representations and Warranties. Each Borrower represents and
warrants to Agent and Lenders, to induce Agent and Lenders to enter into this
Amendment, that (i) Brands is a wholly-

 

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owned Subsidiary of Remington and is engaged in substantially the same business
as Remington and operates with Remington in a joint and common enterprise; (ii)
the Schedules attached to this Amendment contain true, accurate and complete
information with respect to Brands and the matters represented and warranted by
Brands pursuant to Section 9 of the Credit Agreement and such Schedules shall be
deemed to supplement and be a part of the Schedules to the Credit Agreement;
(iii) no Default or Event of Default exists on the date hereof; (iv) the
execution, delivery and performance of this Amendment have been duly authorized
by all requisite corporate action on the part of such Borrower and this
Amendment has been duly executed and delivered by such Borrower; and (v) all of
the representations and warranties made by such Borrower in the Credit Agreement
are true and correct in all material respects on and as of the date hereof after
giving effect to this Amendment (except where such representations and
warranties expressly relate to an earlier date in which case such
representations and warranties were true and correct in all material respects as
of such earlier date).

8.          Conditions Precedent. The effectiveness of the amendments contained
in Section 4 hereof is subject to the satisfaction of each of the following
conditions precedent, in form and substance satisfactory to Agent, on or before
November 13, 2007:

(i)          No Default or Event of Default. No Default or Event of Default
shall have occurred or exist on the date hereof and no default or event of
default shall have occurred or exist on any other material Debt or Material
Contract of Remington or Brands.

(ii)          Amendment; Notes. Agent shall have received (i) a counterpart of
this Amendment for each Lender duly executed and delivered by a duly authorized
officer of the each of the parties hereto, and (ii) for the account of each of
the Lenders, the Revolver Notes, the Term Notes and the Settlement Note, in each
case conforming to the requirements of the Credit Agreement and executed by a
duly authorized officer of each Borrower.

(iii)         Security Documents. Agent shall have received counterparts of such
Security Documents (including, without limitation, any security agreements,
pledge agreements or supplements) as may be required by Agent, and executed by a
duly authorized officer of each Borrower, pursuant to which each Borrower shall
grant or re-grant, as applicable, a security interest in all or substantially
all of its assets to secure the Obligations of such Borrower under the Credit
Agreement, as amended by this Amendment.

(vi)         Availability. Agent shall have determined, and Lenders shall be
satisfied, that, after giving effect to all transactions to be concluded on the
Second Amendment Date, Availability is not less than $27,500,000.

(v)         Evidence of Perfection and Priority of Liens. Agent shall have
received confirmation that all UCC-1 financing statements and other Security
Documents required to be filed or recorded to perfect the Liens of Agent in
Collateral (excluding only Intellectual Property which is registered in
countries other than the United States) have been filed and evidence in form
satisfactory to Agent and Lenders that such Liens will constitute valid and
perfected security interests and Liens, and that there are no other Liens upon
Collateral except for Permitted Liens.

 

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(vi)         Organization Documents. Agent shall have received a copy of the
Organization Documents of each Borrower, and all amendments thereto, certified
by the Secretary of State or other appropriate officials of the jurisdiction of
each Borrower’s state of organization.

(vii)        Good Standing Certificates. Agent shall have received good standing
certificates for each Borrower, issued by the Secretary of State or other
Governmental Authority of such Borrower’s jurisdiction of organization.

(viii)       Insurance. Agent shall have received certified copies of the
casualty insurance policies of each Borrower with respect to Collateral and
business interruption insurance policies, together with loss payable
endorsements on Agent’s standard form of loss payee endorsement naming Agent as
loss payee with respect to each such policy and certified copies of each
Borrower’s liability insurance policies, including product liability policies,
together with endorsements naming Agent as an additional insured, all as
required by the Credit Documents.

(ix)         No Material Adverse Change. No material adverse change in the
business, Properties, results of operations or financial condition of Borrowers
and Guarantors and their respective Subsidiaries, taken as a whole, shall have
occurred since May 31, 2007, and no material adverse change shall have occurred,
in the quality, quantity or value of Collateral shall have occurred since May
31, 2007.

(x)         Fees. Agent shall have received on the date hereof in immediately
available funds (i) the arrangement fee set forth in the letter agreement among
Agent, Wachovia Capital Markets, LLC and Borrower dated the Second Amendment
Date, and (ii) for the Pro Rata benefit of Lenders, in immediately available
funds on the date hereof, an amendment fee in the amount of $180,000.

(xi)         Non-Violation of New Senior Notes Indenture; Legal Opinions. Agent
shall have received and reviewed an opinion letter from Borrowers’ and
Guarantors’ counsel that the Credit Agreement, as amended by this Amendment,
does not violate the New Senior Notes Indenture, and a certificate from one or
more officers of Borrowers to that effect.

(xii)        Other Agreements. Agent shall have received each additional
document or instrument reasonably requested by the Required Lenders, duly
executed by each of the parties thereto.

(xiii)       No Litigation. No action, proceeding, investigation, regulation or
legislation shall have been instituted, threatened or proposed before any court,
governmental agency or legislative body to enjoin, restrain or prohibit, or to
obtain damages in respect of, or which is related to or arises out of, this
Amendment, the Credit Agreement or any of the other Credit Documents or the
consummation of the transactions contemplated hereby or thereby.

 

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(xiv) Borrowing Base Certificate. Agent shall have received the most recent
Borrowing Base Certificate required by the terms of the Credit Agreement or
otherwise requested by Agent pursuant to the terms hereto.

9.           Conditions to the Assets Acquired Pursuant to 2007 Permitted
Acquisition Constituting Eligible Accounts or Eligible Inventory. In no event
shall any Accounts or Inventory acquired pursuant to the 2007 Permitted
Acquisition, if any, constitute Eligible Accounts or Eligible Inventory under
the Credit Agreement unless and until (i) the Target Company has been joined to
the Credit Agreement and other Credit Documents as a Borrower, (ii) the
Acquisition Field Exams have been completed, in form and with results
satisfactory to Agent in all respects, and (iii) all other conditions or
criteria for such Accounts or Inventory to constitute Eligible Accounts or
Eligible Inventory set forth in the Credit Agreement and other Credit Documents
have been satisfied or met.Borrowers acknowledge that, if any Inventory of the
Target Company may constitute Eligible Inventory hereafter, Agent, in its
discretion, has elected to impose a LIFO reserve with respect to such Inventory.
Such LIFO reserve shall be in an amount equal to the difference between the
amount at which the Inventory of the Target Company is carried on its balance
sheet under the last-in-first-out method of inventory accounting and the amount
at which such Inventory would be so carried based upon the first-in-first-out
method of inventory accounting, all determined in accordance with GAAP.

10.         Additional Covenants. To induce Agent and Lenders to enter into this
Amendment, Borrowers covenant and agree as follows: (i) simultaneously with the
execution and delivery of this Amendment, Borrowers shall execute and deliver
amendments to each of the Mortgages, in form and substance satisfactory to
Agent; (ii) within sixty (60) days after the Second Amendment Date, Borrowers
shall cause the mortgage amendments described in the foregoing clause (i) to be
recorded in the appropriate real estate records and Borrowers shall deliver to
Agent endorsements or commitments for endorsements to the existing mortgagee
title insurance policies insuring the Liens of the Mortgages, which shall be in
form and substance satisfactory to Agent and which shall give effect to such
mortgage amendments; and (iii) simultaneously with the recording of the mortgage
amendments described in clause (i), Borrowers shall pay or shall reimburse Agent
for the payment of all applicable documentary stamp, intangibles, recording,
note or other similar taxes payable with respect to such mortgage amendments.

11.         Reference to Credit Agreement. Upon the effectiveness of this
Amendment, each reference in the Credit Agreement to “this Agreement,”
“hereunder,” or words of like import shall mean and be a reference to the Credit
Agreement, as amended by this Amendment.

12.         Breach of Amendment. This Amendment shall be part of the Credit
Agreement and a breach of any representation, warranty or covenant herein shall
constitute an Event of Default.

13.         Expenses of Agent and Lenders. Borrower agrees to pay, on demand,
all reasonable costs and expenses incurred by Agent and Lenders in connection
with the preparation, negotiation and execution of this Amendment and any other
Credit Documents executed pursuant hereto, including, without limitation, the
reasonable costs and fees of Agent’s and Lenders’ legal counsel.

14.         Effectiveness; Governing Law. This Amendment shall be effective upon
execution and delivery by Borrower and acceptance by Agent and the Lenders
(notice of which acceptance is hereby waived), whereupon the same shall be
governed by and construed in accordance with the

 

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internal laws of the State of New York (without giving effect to the conflict of
laws principles thereof, other than Section 5-1401 of the New York General
Obligations Law).

15.         Successors and Assigns. This Amendment shall be binding upon and
inure to the benefit of the parties hereto and their respective successors and
assigns.

16.         No Novation, etc. Except as otherwise expressly provided in this
Amendment, nothing herein shall be deemed to amend or modify any provision of
the Credit Agreement or any of the other Credit Documents, each of which shall
remain in full force and effect. This Amendment is not intended to be, nor shall
it be construed to create, a novation or accord and satisfaction, and the Credit
Agreement as herein modified shall continue in full force and effect.

17.         Counterparts; Telecopied Signatures. This Amendment may be executed
in any number of counterparts and by different parties to this Amendment on
separate counterparts, each of which, when so executed, shall be deemed an
original, but all such counterparts shall constitute one and the same agreement.
Any signature delivered by a party by facsimile transmission or by portable
document format by electronic mail shall be deemed to be an original signature
hereto.

18.         Further Assurances. Borrower agrees to take such further actions as
Agent shall reasonably request from time to time in connection herewith to
evidence or give effect to the amendments set forth herein or any of the
transactions contemplated hereby.

19.         Section Titles. Section titles and references used in this Amendment
shall be without substantive meaning or content of any kind whatsoever and are
not a part of the agreements among the parties hereto.

20.         Release of Claims. To induce Agent and Lenders to enter into this
Amendment, Borrower hereby releases, acquits and forever discharges Agent and
Lenders, and all officers, directors, agents, employees, successors and assigns
of Agent and Lenders, from any and all liabilities, claims, demands, actions or
causes of action of any kind or nature (if there be any), whether absolute or
contingent, disputed or undisputed, at law or in equity, that are known to
Borrower as of the date of this Amendment, or that Borrower should have
reasonably known, arising under or in connection with any of the Credit
Documents. Borrower represents and warrants to Lender that Borrower has not
transferred or assigned to any Person any claim that Borrower ever had or
claimed to have against Agent or any Lender.

21.         Waiver of Jury Trial. To the fullest extent permitted by applicable
law, the parties hereto each hereby waives the right to trial by jury in any
action, suit, counterclaim or proceeding arising out of or related to this
Amendment.

 

[Signatures begin on next page]

 

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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly
executed under seal and delivered by their respective duly authorized officers
on the date first written above.

EXISTING BORROWER:

 

REMINGTON ARMS COMPANY , INC.

 

By:           /s/ Stephen P. Jackson, Jr.      
Name:     Stephen P. Jackson, Jr.             
Title:       CFO, Treasurer, Secretary         

 

Address:

870 Remington Drive

Madison, North Carolina 27025

Attention: President

Telecopier No.: (336) 548-7801

 

NEW BORROWERS:

 

RA BRANDS, L.L.C.

 

By:           /s/ Stephen P. Jackson, Jr.      
Name:     Stephen P. Jackson, Jr.             
Title:       V.P.                                                 

 

Address:

870 Remington Drive

Madison, North Carolina 27025

Attention: President

Telecopier No.: (336) 548-7801

 

 

 

 

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AGENT:

 

WACHOVIA BANK, NATIONAL

ASSOCIATION, as Agent

 

By:            /s/ Bruce Rhodes                        
Name:      Bruce Rhodes                            
Title:       Director                                            

 

Address:

301 South College Street

Charlotte, North Carolina 28288

Attention: Bruce Rhodes

Telecopier No.: (704) 374-2703

 

 

LENDERS:

 

WACHOVIA BANK, NATIONAL

ASSOCIATION

 

 

By:            /s/ Bruce Rhodes                        
Name:      Bruce Rhodes                            
Title:       Director                                            

Revolver Commitment: $65,444,445.00

 

Term Loan Commitment: $10,555,555.00

 

 

Address:

 

301 South College Street

Charlotte, North Carolina 28288

Attention: ____________________

Telecopier No.: (704) 374-2703

 

LIBOR Lending Office:

301South College Street

Charlotte, North Carolina 28288

Attention: _____________________

Telecopier No.: (704) 374-2703

 

 

 

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BANK OF AMERICA, N.A.

 

 

Revolver Commitment: $55,111,111.00
Term Loan Commitment: $8,888,889.00

By:      /s/ Lawrence P. Garni                 
Name:   Lawrence P. Garni                     
Title:       Sr. Vice President                    

 

 

Address:

 

335 Madison Avenue, 6th Floor

New York, New York 10017

Attention: Lawrence P. Garni

Telecopier No.: (212) 503-7340

 

LIBOR Lending Office:

 

Bank of America, N.A.

20975 Swenson Drive, Suite 200

Waukesha, Wisconsin 53186

Attention: Karla Brown

Telecopier No.: (262) 798-4883

 

 

 

 

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NATIONAL CITY BUSINESS

CREDIT, INC.

 

 

Revolver Commitment: $34,444,444.00
Term Loan Commitment: $5,555,556.00

By:         /s/ Tom Buda                          
Name:     Tom Buda                              
Title:       Vice President                       

 

 

Address:

1965 East Sixth Street, 4TH Floor

Locator 01-3049

Cleveland, Ohio 44114

Attention: Tom Buda

Telecopier No.: (216) 222-9555

 

LIBOR Lending Office:

1965 East Sixth Street, 4TH Floor

Locator 01-3049

Cleveland, Ohio 44114

Attention: Montreal Phillips

Telecopier No.: (216) 222-9555

 

 

-24-

 

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CONSENT AND REAFFIRMATION

(PLEDGOR)

 

The undersigned pledgor of the Equity Interests of Borrowers securing the
Obligations at any time owing to Agent and Lenders hereby (i) acknowledges
receipt of a copy of the foregoing Joinder Agreement, Second Amendment and
Supplement to Amended and Restated Credit Agreement; (ii) consents to Borrowers’
execution and delivery thereof; and (iii) affirms that nothing contained therein
shall modify in any respect whatsoever its pledge securing the Obligations and
reaffirms that such pledge is and shall remain in full force and effect.

IN WITNESS WHEREOF, the undersigned has executed this Consent and Reaffirmation
as of the date of such Second Amendment to Amended and Restated Credit
Agreement.

 

RACI HOLDING, INC.

By:   /s/ Stephen P. Jackson, Jr.                                  

Name:      Stephen P. Jackson, Jr.                                

           Title:          CFO, Treasurer, Secretary              

 

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EXHIBIT A-1

 

FORM OF SECOND AMENDED AND RESTATED REVOLVER NOTE

 

U.S. $__________.__

______________, 20__

FOR VALUE RECEIVED, the undersigned, REMINGTON ARMS COMPANY, INC., a Delaware
corporation, and RA BRANDS, L.L.C., a Delaware limited liability company
(individually, a “Borrower” and collectively, the “Borrowers”), hereby
unconditionally, and jointly and severally, promise to pay to the order of
(herein, together with any subsequent holder hereof, called the “Holder”) the
principal sum of $_______________ or such lesser sum as may constitute Holder’s
Pro Rata share of the outstanding principal amount of all Revolver Loans
pursuant to the terms of the Credit Agreement (as defined below) on the date on
which such outstanding principal amounts become due and payable pursuant to
Section 5.2 of the Credit Agreement, in strict accordance with the terms
thereof. Borrowers likewise unconditionally, and jointly and severally, promise
to pay to Holder interest from and after the date hereof on Lender’s Pro Rata
share of the outstanding principal amount of Revolver Loans at such interest
rates, payable at such times, and computed in such manner as are specified in
Section  3.1 of the Credit Agreement, in strict accordance with the terms
thereof.

This Second Amended and Restated Revolver Note (“Note”) is issued pursuant to,
and is one of the “Revolver Notes” referred to in, the Amended and Restated
Credit Agreement dated March 15, 2006 (as the same may be amended from time to
time, the “Credit Agreement”), among Borrowers, the financial institutions from
time to time parties thereto as lenders (“Lenders”), Wachovia Bank, National
Association, as Administrative and Collateral Agent for Lenders (in such
capacity, “Agent”), Bank of America, N.A. as Syndication Agent, and National
City Business Credit, Inc. as Documentation Agent, and Holder is and shall be
entitled to all benefits thereof and of all Credit Documents executed and
delivered in connection therewith. All capitalized terms used herein, unless
otherwise defined herein, shall have the meanings ascribed to such terms in the
Credit Agreement.

The repayment of the principal balance of this Note shall be made in the manner
and to the extent stated in Section  5.2 of the Credit Agreement. The entire
unpaid principal balance and all accrued interest on this Note shall be due and
payable immediately upon the Commitment Termination Date.

All payments of principal and interest shall be made in U.S. Dollars in
immediately available funds as specified in the Credit Agreement.

Upon or after the occurrence of an Event of Default and for so long as such
Event of Default exists, the principal balance and all accrued interest of this
Note may be declared due and payable in the manner and with the effect provided
in the Credit Agreement, and the unpaid principal balance hereof shall bear
interest at the Default Rate as and when provided in Section  3.1.5 of the
Credit Agreement. Borrowers agree to pay, and save Holder harmless against any
liability for the payment of, all costs and expenses, including, but not limited
to, reasonable attorneys’ fees, if this Note is collected by or through an
attorney-at-law.

All principal amounts of Revolver Loans made by Holder to Borrowers pursuant to
the Credit Agreement, and all accrued and unpaid interest thereon, shall be
deemed outstanding under this Note and shall continue to be owing by Borrowers
until paid in accordance with the terms of this Note and the Credit Agreement.

 

--------------------------------------------------------------------------------

 

In no contingency or event whatsoever, whether by reason of advancement of the
proceeds hereof or otherwise, shall the amount paid or agreed to be paid to
Holder for the use, forbearance or detention of money advanced hereunder exceed
the highest lawful rate permissible under any law which a court of competent
jurisdiction may deem applicable hereto; and, in the event of any such payment
inadvertently paid by a Borrower or inadvertently received by Holder, such
excess sum shall be, at such Borrower’s option, returned to such Borrower
forthwith or credited as a payment of principal, but shall not be applied to the
payment of interest. It is the intent hereof that Borrowers not pay or contract
to pay, and that Holder not receive or contract to receive, directly or
indirectly in any manner whatsoever, interest in excess of that which may be
paid by Borrowers under Applicable Law.

Time is of the essence of this Note. To the fullest extent permitted by
Applicable Law, each Borrower, for itself and its legal representatives,
successors and assigns, expressly waives presentment, demand, protest, notice of
dishonor, notice of non-payment, notice of maturity, notice of protest,
presentment for the purpose of accelerating maturity, diligence in collection,
and the benefit of any exemption or insolvency laws.

Wherever possible each provision of this Note shall be interpreted in such a
manner as to be effective and valid under Applicable Law, but if any provision
of this Note shall be prohibited or invalid under Applicable Law, such provision
shall be ineffective to the extent of such prohibition or invalidity without
invalidating the remainder of such provision or remaining provisions of this
Note. No delay or failure on the part of Holder in the exercise of any right or
remedy hereunder shall operate as a waiver thereof, nor as an acquiescence in
any default, nor shall any single or partial exercise by Holder of any right or
remedy preclude any other right or remedy. Agent may, at its option, enforce its
rights against any Collateral securing this Note without enforcing its rights
against any Borrower, any guarantor of the indebtedness evidenced hereby or any
other property or indebtedness due or to become due to any Borrower. Each
Borrower agrees that, without releasing or impairing Borrowers’ liability
hereunder, Agent or any Holder may at any time release, surrender, substitute or
exchange any Collateral securing this Note and may at any time release any party
primarily or secondarily liable for the indebtedness evidenced by this Note.

The rights of Holder and obligations of Borrowers hereunder shall be construed
in accordance with and governed by the laws (without giving effect to the
conflict of law principles thereof other than Section 5-1401 of the New York
General Obligations Law) of the State of New York.

This Note amends and restates that certain Amended and Restated Revolver Note
dated March 15, 2006, made by Remington Arms Company, Inc. and RA Factors, Inc.
to the order of _____________________________________ in the original maximum
principal amount of $____________ (the “Prior Note”), but does not otherwise
supersede, discharge or satisfy any of Borrowers’ obligations under the Prior
Note and nothing herein shall constitute a novation or an accord and
satisfaction with respect to the Prior Note or any of the other Obligations.

 

-2-

 

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IN WITNESS WHEREOF, each Borrower has caused this Note to be executed and
delivered by its duly authorized officer on the date first above written.

 

REMINGTON ARMS COMPANY, INC.

 

By:______________________________________

 

 

Title:___________________________________

 

 

RA BRANDS, L.L.C.

 

By:______________________________________

 

 

Title:___________________________________

 

 

 

-3-

 

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EXHIBIT A-2

 

FORM OF THIRD AMENDED AND RESTATED SETTLEMENT NOTE

 

 

________, ______

U.S. $10,000,000.00

New York, New York

 

FOR VALUE RECEIVED, the undersigned, REMINGTON ARMS COMPANY, INC., a Delaware
corporation, and RA BRANDS, L.L.C., a Delaware limited liability company
(individually, a “Borrower” and collectively, the “Borrowers”), hereby
unconditionally, and jointly and severally, promise to pay to the order of
WACHOVIA BANK, NATIONAL ASSOCIATION (herein, together with any subsequent holder
hereof, called “Wachovia”) the principal sum of $10,000,000 or such lesser sum
as may constitute the outstanding principal amount of all Settlement Loans
pursuant to the terms of the Credit Agreement (as defined below) on the date on
which such outstanding principal amounts become due and payable pursuant to the
Credit Agreement, in strict accordance with the terms thereof. Borrowers
likewise unconditionally, and jointly and severally, promise to pay to Wachovia
interest from and after the date hereof on the outstanding principal amount of
Settlement Loans at such interest rates, payable at such times, and computed in
such manner as are specified in Section  3.1 of the Credit Agreement, in strict
accordance with the terms thereof.

This Third Amended and Restated Settlement Note (“Note”) is issued pursuant to,
and is the “Settlement Note” referred to in, the Amended and Restated Credit
Agreement dated March 15, 2006 (as the same may be amended, restated, modified
or supplemented, from time to time, the “Credit Agreement”), among Borrowers,
the financial institutions from time to time parties thereto as lenders
(“Lenders”), Wachovia Bank, National Association, as Administrative and
Collateral Agent for Lenders (in such capacity, “Agent”), Bank of America, N.A.
as Syndication Agent, and National City Business Credit, Inc. as Documentation
Agent, and Wachovia is and shall be entitled to all benefits thereof and of all
Credit Documents executed and delivered in connection therewith. All capitalized
terms used herein, unless otherwise defined herein, shall have the meanings
ascribed to such terms in the Credit Agreement.

The repayment of the principal balance of this Note shall be made in the manner
and to the extent stated in Section  5.2 of the Credit Agreement. The entire
unpaid principal balance and all accrued interest on this Note shall be due and
payable immediately upon the Commitment Termination Date.

All payments of principal and interest shall be made in U.S. Dollars in
immediately available funds as specified in the Credit Agreement.

Upon or after the occurrence of an Event of Default and for so long as such
Event of Default exists, the principal balance and all accrued interest of this
Note may be declared due and payable in the manner and with the effect provided
in the Credit Agreement, and the unpaid principal balance hereof shall bear
interest at the Default Rate as and when provided in Section  3.1.5 of the
Credit Agreement. Borrowers agree to pay, and save Wachovia harmless against any
liability for the payment of, all costs and expenses, including, but not limited
to, reasonable attorneys’ fees, if this Note is collected by or through an
attorney-at-law.

All principal amounts of Settlement Loans made by Wachovia to Borrowers pursuant
to the Credit Agreement, and all accrued and unpaid interest thereon, shall be
deemed outstanding under

 

 

--------------------------------------------------------------------------------

 

this Note and shall continue to be owing by Borrowers until paid in accordance
with the terms of this Note and the Credit Agreement.

In no contingency or event whatsoever, whether by reason of advancement of the
proceeds hereof or otherwise, shall the amount paid or agreed to be paid to
Wachovia for the use, forbearance or detention of money advanced hereunder
exceed the highest lawful rate permissible under any law which a court of
competent jurisdiction may deem applicable hereto; and, in the event of any such
payment inadvertently paid by any Borrower or inadvertently received by
Wachovia, such excess sum shall be, at such Borrower’s option, returned to such
Borrower forthwith or credited as a payment of principal, but shall not be
applied to the payment of interest. It is the intent hereof Borrowers not pay or
contract to pay, and that Wachovia not receive or contract to receive, directly
or indirectly in any manner whatsoever, interest in excess of that which may be
paid by Borrowers under Applicable Law.

Time is of the essence of this Note. To the fullest extent permitted by
Applicable Law, each Borrower, for itself and its legal representatives,
successors and assigns, expressly waives presentment, demand, protest, notice of
dishonor, notice of non-payment, notice of maturity, notice of protest,
presentment for the purpose of accelerating maturity, diligence in collection,
and the benefit of any exemption or insolvency laws.

Wherever possible each provision of this Note shall be interpreted in such a
manner as to be effective and valid under Applicable Law, but if any provision
of this Note shall be prohibited or invalid under Applicable Law, such provision
shall be ineffective to the extent of such prohibition or invalidity without
invalidating the remainder of such provision or remaining provisions of this
Note. No delay or failure on the part of Wachovia in the exercise of any right
or remedy hereunder shall operate as a waiver thereof, nor as an acquiescence in
any default, nor shall any single or partial exercise by Wachovia of any right
or remedy preclude any other right or remedy. Agent may, at its option, enforce
its rights against any Collateral securing this Note without enforcing its
rights against any Borrower, any Guarantor of the indebtedness evidenced hereby
or any other property or indebtedness due or to become due to Borrowers. Each
Borrower agrees that, without releasing or impairing such Borrower’s liability
hereunder, Agent or Holder may at any time release, surrender, substitute or
exchange any Collateral securing this Note and may at any time release any party
primarily or secondarily liable for the indebtedness evidenced by this Note.

The rights of Wachovia and obligations of Borrowers hereunder shall be construed
in accordance with and governed by the laws (without giving effect to the
conflict of law principles thereof other than Section 5-1401 of the New York
General Obligations Law) of the State of New York.

This Note amends and restates that certain Second Amended and Restated
Settlement Note dated May 31, 2007, made by Remington Arms Company, Inc. to the
order of Wachovia in the original maximum principal amount of $10,000,000 (the
“Prior Settlement Note”), but does not otherwise supersede, discharge or satisfy
any of Borrowers’ obligations under the Prior Settlement Note and nothing herein
shall constitute a novation or an accord and satisfaction with respect to the
Prior Settlement Note or any of the other Obligations.

IN WITNESS WHEREOF, each Borrower has caused this Note to be executed and
delivered by its duly authorized officer on the date first above written.

 

-2-

 

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REMINGTON ARMS COMPANY, INC.

 

By:______________________________________

 

Title:___________________________________

 

 

RA BRANDS, L.L.C.

 

By:______________________________________

 

Title:___________________________________

 

 

 

 

-3-

 

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EXHIBIT A-3

FORM OF TERM NOTE

U.S. $______________.___

____________, 20__

 

 

__________________

FOR VALUE RECEIVED, the undersigned, REMINGTON ARMS COMPANY, INC., a Delaware
corporation, and RA BRANDS, L.L.C., a Delaware limited liability company
(individually, a “Borrower” and collectively, the “Borrowers”), hereby
unconditionally, and jointly and severally, promise to pay the order of
_______________________________ (herein, together with any subsequent holder
hereof, called the “Holder”), the principal sum of $_________, or so much
thereof as represents Holder’s Pro Rata share of the outstanding principal
amount of the Term Loan pursuant to the terms of the Credit Agreement (as
defined below), on the dates on which such outstanding principal amounts become
due and payable pursuant to Section 5.3 of the Credit Agreement, in strict
accordance with the terms thereof. Borrowers likewise unconditionally, and
jointly and severally, promise to pay to Holder interest from and after the date
hereof on the unpaid principal balance hereof at such interest rates, payable at
such times and computed in such manner as are specified in Section 3.1 of the
Credit Agreement, in strict accordance with the terms thereof.

This Term Note (“Note”) is issued pursuant to, and is one of the “Term Notes”
referred to in, the Amended and Restated Credit Agreement dated March 15, 2006
(as the same may be amended, restated, modified or supplemented, from time to
time, the “Credit Agreement”), among Borrowers, the financial institutions from
time to time parties thereto as lenders (“Lenders”), Wachovia Bank, National
Association, as Administrative and Collateral Agent for Lenders (in such
capacity, “Agent”), Bank of America, N.A. as Syndication Agent, and National
City Business Credit, Inc. as Documentation Agent, and Holder is and shall be
entitled to all benefits thereof and of all Credit Documents executed and
delivered in connection therewith. This Note is subject to certain restrictions
on transfer or assignment as provided in the Credit Agreement. All capitalized
terms used herein, unless otherwise defined herein, shall have the meanings
ascribed to such terms in the Credit Agreement.

This Note is subject to mandatory prepayment in accordance with the provisions
of Section 5.3.3 of the Credit Agreement and to prepayment premiums in
accordance with the provisions of Section 5.3.4 of the Credit Agreement.
Notwithstanding anything to the contrary contained herein, the entire unpaid
principal balance and all accrued interest on this Note shall be due and payable
immediately upon the Commitment Termination Date.

All payments of principal and interest shall be made in U.S. Dollars in
immediately available funds as specified in the Credit Agreement.

Upon or after the occurrence of an Event of Default and for so long as such
Event of Default exists, the principal balance and all accrued interest of this
Note may be declared due and payable in the manner and with the effect provided
in the Credit Agreement, and the unpaid principal balance hereof shall bear
interest at the Default Rate as and when provided in Section  3.1.5 of the
Credit Agreement. Borrowers agree to pay, and save Wachovia harmless against any
liability for the payment of, all costs and expenses, including, but not limited
to, reasonable attorneys’ fees, if this Note is collected by or through an
attorney-at-law.

 

--------------------------------------------------------------------------------

 

In no contingency or event whatsoever, whether by reason of advancement of the
proceeds hereof or otherwise, shall the amount paid or agreed to be paid to
Holder for the use, forbearance or detention of money advanced hereunder exceed
the highest lawful rate permissible under any law which a court of competent
jurisdiction may deem applicable hereto; and, in the event of any such payment
inadvertently paid by any Borrower or inadvertently received by Holder, such
excess sum shall be, at such Borrower’s option, returned to such Borrower
forthwith or credited as a payment of principal but shall not be applied to the
payment of interest. It is the intent hereof that Borrowers not pay or contract
to pay, and that Holder not receive or contract to receive, directly or
indirectly in any manner whatsoever, interest in excess of that which may be
paid by Borrowers under Applicable Law.

Time is of the essence of this Note. To the fullest extent permitted by
Applicable Law, each Borrower, for itself and its legal representatives,
successors and assigns, expressly waives presentment, demand, protest, notice of
dishonor, notice of non-payment, notice of maturity, notice of protest,
presentment for the purpose of accelerating maturity, diligence in collection,
and the benefit of any exemption or insolvency laws.

Wherever possible each provision of this Note shall be interpreted in such a
manner as to be effective and valid under Applicable Law, but if any provision
of this Note shall be prohibited or invalid under Applicable Law, such provision
shall be ineffective to the extent of such prohibition or invalidity without
invalidating the remainder of such provision or remaining provisions of this
Note. No delay or failure on the part of Holder in the exercise of any right or
remedy hereunder shall operate as a waiver thereof, nor as an acquiescence in
any default, nor shall any single or partial exercise by Holder of any right or
remedy preclude any other right or remedy. Agent, at its option, may enforce its
rights against any Collateral securing this Note without enforcing its rights
against any Borrower, any Guarantor of the indebtedness evidenced hereby or any
other property or indebtedness due or to become due to Borrowers. Each Borrower
agrees that, without releasing or impairing such Borrower’s liability hereunder,
Agent or Holder may at any time release, surrender, substitute or exchange any
Collateral securing this Note and may at any time release any party primarily or
secondarily liable for the indebtedness evidenced by this Note.

The rights of Holder and obligations of Borrowers hereunder shall be construed
in accordance with and governed by the laws (without giving effect to the
conflict of law principles thereof other than Section 5-1401 of the New York
General Obligations Law) of the State of New York.

 

 

 

 

-2-

 

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IN WITNESS WHEREOF, each Borrower has caused this Note to be executed and
delivered by its duly authorized officer on the date first above written.

REMINGTON ARMS COMPANY, INC.

 

By:______________________________________

 

Title:___________________________________

 

 

RA BRANDS, L.L.C.

 

By:______________________________________

 

Title:___________________________________

 

 

 

-3-

 

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EXHIBIT B

 

Form of Letter of Credit Request

 

 

TO:

Lenders listed in that certain Amended and Restated Credit Agreement dated March
15, 2006 (as amended, restated, modified or supplemented, the “Credit
Agreement”), among Remington Arms Company, Inc., and the other borrowers named
therein, the Lenders listed herein and Wachovia Bank, National Association, as
Agent (“Agent”)

 

Pursuant to Section 2.3.1 of the Credit Agreement, the undersigned authorized
officer of the undersigned Borrowers hereby requests [a] Letter[s] of Credit as
follows:

 

Face Amount

Date of Issuance

Expiry Date

Letter of Credit Purpose

Name and Address of Beneficiary

                                       

 

The undersigned hereby certifies that the amount of the outstanding LC
Obligations prior to giving effect to any Letter of Credit requested hereby is
equal to $_____________.

 

Unless otherwise defined herein, terms defined in the Credit Agreement shall
have the same meaning in this notice.

 

Date:

____________________, 200___.

 

 

REMINGTON ARMS COMPANY, INC.

 

By:______________________________________

 

Title:___________________________________

 

 

RA BRANDS, L.L.C.

 

By:______________________________________

 

Title:___________________________________

 

 

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EXHIBIT C

 

Form of Notice of Conversion/Continuation

 

Date ______________, 200_

 

Wachovia Bank, National Association, as Agent

301 South College Street

6th Floor

Charlotte, North Carolina 28288

Attention: _______________________

 

Re:

Amended and Restated Credit Agreement dated March 15, 2006, by and among
Remington Arms Company, Inc., the other “Borrowers” named therein, certain
“Lenders” from time to time parties thereto, Wachovia Bank, National
Association, as Administrative and Collateral Agent for such Lenders, Bank of
America, N.A. as Syndication Agent and National City Business Credit, Inc. as
Documentation Agent (as at any time amended, restated, modified or supplemented,
the “Credit Agreement”)

 

Gentlemen:

 

This Notice of Conversion/Continuation is delivered to you pursuant to Section
3.1.2 of the Credit Agreement. Unless otherwise defined herein, capitalized
terms used herein shall have the meanings attributable thereto in the Credit
Agreement. Borrowers hereby give notice of their request as follows:

 

Check as applicable:

 



A conversion of Loans from one Type to another, as follows:

 

(i)

The requested date of the proposed conversion is ______________, ____ (the
“Conversion Date”);

 

(ii)

The Type of Loans to be converted pursuant hereto are presently
__________________ [select either Euro-Dollar Loans or Base Rate Loans] in the
principal amount of $_____________ outstanding as of the Conversion Date;

 

(iii)

The portion of the aforesaid Loans to be converted on the Conversion Date is
$_____________ (the “Conversion Amount”);

 

(iv)

The Conversion Amount is to be converted into a ____________ [select either a
Euro-Dollar Loan or a Base Rate Loan] (the “Converted Loan”) on the Conversion
Date.

 

 

--------------------------------------------------------------------------------

 

 

(v)

[In the event Borrowers select a Euro-Dollar Loan:] Borrowers hereby request
that the Interest Period for such Converted Loan be for a duration of _____
[insert length of Interest Period].

 



A continuation of Loans which are Euro-Dollar Loans for a new Interest Period,
as follows:

 

(i)

The requested date of the proposed continuation is _______________, _____ (the
“Continuation Date”);

 

(ii)

The aggregate amount of such Euro-Dollar Loans subject to such continuation is
$__________________;

 

(iii)

The duration of the selected Interest Period for such Euro-Dollar Loans which
are the subject of such continuation is: _____________ [select duration of
applicable Interest Period];

 

Each Borrower hereby ratifies and reaffirms all of its liabilities and
obligations under the Credit Documents and certifies that no Default or Event of
Default exists on the date hereof.

 

Borrowers have caused this Notice of Conversion/Continuation to be executed and
delivered by their duly authorized representatives, this _______ day of
______________, 200_.

 

REMINGTON ARMS COMPANY, INC.

 

By:______________________________________

 

Title:___________________________________

 

 

RA BRANDS, L.L.C.

 

By:______________________________________

 

Title:___________________________________

 

 

 

-2-

 

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EXHIBIT D

 

Form of Notice of Borrowing

 

Date ____________, 200_

 

Wachovia Bank, National Association, as Agent

301 South College Street

6th Floor

Charlotte, North Carolina 28288

Attention: _________________

 

Re:

Amended and Restated Credit Agreement dated March 15, 2006, by and among
Remington Arms Company, Inc., the other “Borrowers” named therein, certain
“Lenders” from time to time parties thereto, Wachovia Bank, National
Association, as Administrative and Collateral Agent for such Lenders, Bank of
America, N.A. as Syndication Agent and National City Business Credit, Inc. as
Documentation Agent (as at any time amended, restated, modified or supplemented,
the “Credit Agreement”)

 

Gentlemen:

 

This Notice of Borrowing is delivered to you pursuant to Section  4.1.1 of the
Credit Agreement. Unless otherwise defined herein, capitalized terms used herein
shall have the meanings attributable thereto in the Credit Agreement. Borrowers
hereby request a Revolver Loan in the aggregate principal amount of
$______________, to be made on _____________, 200 _, to be disbursed to the
Funding Account, and to consist of:

 

Check as applicable:

□

Base Rate Loans in the aggregate principal amount of $_____________

 

 

□

Euro-Dollar Loans in the aggregate principal amount of $___________, with
Interest Periods as follows:

 

(i)

As to $_____________, an Interest Period of ______ month(s);

 

(ii)

As to $_____________, an Interest Period of ______ months;

 

(iii)

As to $_____________, an Interest Period of ______ months.

 

 

--------------------------------------------------------------------------------

 

Each Borrower hereby ratifies and reaffirms all of its liabilities and
obligations under the Credit Documents and hereby certifies that no Default or
Event of Default exists on the date hereof.

 

Each Borrower hereby represents, warrants and certifies to Agent that the amount
of the Obligations incurred and outstanding on the date hereof, taken together
with the amount of the Revolver Loan requested herein, does not exceed the sum
of (i) the amount on the date hereof that constitutes “Permitted Indebtedness”
under clause (i) of the definition of that term in the New Senior Notes
Indenture as in effect on January 24, 2003 plus (ii) the amount of Obligations
that Borrowers would be permitted to incur hereunder on such date under clause
(xiv) of the definition of “Permitted Indebtedness” without causing a breach or
violation of the New Senior Notes Indenture as in effect on January 24, 2003,
minus (iii) the outstanding principal balance of the Term Loan on such date.

Borrowers have caused this Notice of Borrowing to be executed and delivered by
their duly authorized representative, this ______ day of _____________, 200_.

 

REMINGTON ARMS COMPANY, INC.

 

By:______________________________________

 

Title:___________________________________

 

 

RA BRANDS, L.L.C.

 

By:______________________________________

 

Title:___________________________________

 

 

 

 

-2-

 

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EXHIBIT E

 

FORM OF COMPLIANCE CERTIFICATE

 

[Letterhead of Remington]

 

Date: _____________, 200__

 

Wachovia Bank, National Association, as Agent

301 South College Street

6th Floor

Charlotte, North Carolina 28288

Attention: ________________________

 

Reference is hereby made to the Amended and Restated Credit Agreement dated
March 15, 2006, by and among Remington Arms Company, Inc., the other borrowers
named therein. (each a “Borrower” and collectively, “Borrowers”), certain
“Lenders” from time to time parties thereto, Wachovia Bank, National
Association, as Administrative and Collateral Agent for such Lenders, Bank of
America, N.A., as Syndication Agent, and National City Business Credit, Inc., as
Documentation Agent (as at any time amended, restated, modified or supplemented,
the “Credit Agreement”). Capitalized terms used in this Compliance Certificate,
unless otherwise defined herein, shall have the meanings ascribed to them in the
Credit Agreement.

 

Pursuant to Section  10.1.3 of the Credit Agreement, the undersigned, the chief
financial officer of Borrowers, hereby certifies to the Agent and the Lenders
that (1) the information contained in the Compliance Checklist attached hereto
is true, accurate and complete in all material respects as of __________, 200__,
and (2), except as expressly stated in the Compliance Certificate attached
hereto: (a) no Default or Event of Default is in existence on and as of the date
hereof, (b) as of the date hereof, each Borrower is current in its payment of
all accrued rent and other charges to Persons who own or lease any premises
where any of the Collateral is located or who provide processing or logistics
services with respect to any of the Collateral at any location, and there are no
pending disputes or claims regarding such Borrower’s failure to pay or delay in
payment of any such rent or other charges, and (c) as of the date hereof, each
Borrower and each of its Subsidiaries has filed all federal, state, municipal,
local, and foreign tax returns and other reports it is required by law to file
and has paid, all Taxes upon it, its income and Properties (including all
federal excise taxes), prior to the date on which such Taxes became delinquent,
in each case except to the extent that such Taxes are being Properly Contested
and except where the same could not reasonably be expected to have a Material
Adverse Effect.

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

REMINGTON ARMS COMPANY, INC.

 

By:______________________________________

 

Title:___________________________________

 

 

RA BRANDS, L.L.C.

 

By:______________________________________

 

Title:___________________________________

 

 

 

 

-2-

 

--------------------------------------------------------------------------------

 

 

REMINGTON ARMS COMPANY, INC. - COMPLIANCE CHECKLIST

 

AFFIRMATIVE COVENANTS

 

In
compliance

Not in
compliance

Covenant

     

□

□

Notices (Section 10.1.2)

□

□

Financial and Other Information. (Section 10.1.3)

□

□

Landlord and Storage Agreements (Section 10.1.4)

□

□

Projections . (Section 10.1.5)

□

□

Taxes . (Section 10.1.6)

□

□

Compliance with Laws. (Section 10.1.7)

□

□

Insurance . (Section 10.1.8)

□

□

Compliance with LC Documents. (Section 10.1.9)

 

 

--------------------------------------------------------------------------------

 

NEGATIVE COVENANTS

 

In
compliance

Not in
compliance

Covenant

     

□

□

Fundamental Changes. (Section 10.2.1)

 

□

□

Loans. (Section 10.2.2)

 

□

□

Permitted Debt. (Section 10.2.3)

 

□

□

Affiliate Transactions. (Section 10.2.4)

 

□

□

Limitation on Liens. (Section 10.2.5)

 

□

□

Subordinated Debt. (Section 10.2.6)

 

□

□

Restricted Payments. (Section 10.2.7)

 

□

□

Disposition of Assets. (Section 10.2.9)

 

□

□

Bill-and-Hold Sales, Etc. (Section 10.2.11)

 

□

□

Restricted Investments. (Section 10.2.12)

 

□

□

Acquisitions. (Section 10.2.13)

 

□

□

Tax Consolidation. (Section 10.2.15)

 

□

□

Fiscal Year. (Section 10.2.16)

 

□

□

Organization Documents. (Section 10.2.17)

 

□

□

Conduct of Business. (Section 10.2.18)

 

□

□

Subsidiaries. (Section 10.2.19)

 

□

□

Restrictions on Upstream Payments. (Section 10.2.20)

 

□

□

Hedging Agreements. (Section 10.2.21)

 

□

□

Factoring Documents. (Section 10.2.22)

 

□

□

Licenses of Intellectual Property. (Section 10.2.23)

 

 

--------------------------------------------------------------------------------

 

FINANCIAL COVENANTS

 

Capitalized terms used herein have the meanings ascribed to such terms in the
Credit Agreement.

 

In
compliance

Not in
compliance

Covenant

     

□

 
 
 

 

(i)

(ii)
(iii)
 
 
(iv)
 

(a)
 
 

(i)

(ii)
(iii)
 

(b)

□

 

__ to 1.0

$_____________
$_____________
$_____________

$_____________
 

$ _____________

$_____________
$_____________
$_____________

$_____________

Consolidated Fixed Charge Coverage Ratio. (Section 10.3.1)
[Required at any time that the Minimum Availability Condition is not satisfied]
 
The ratio of (a) Consolidated Adjusted EBITDA to (b) Consolidated Fixed Charges
for the Most Recent Covenant Test Period of at least 1.1 to 1.0.
 
(a)   Consolidated Adjusted EBITDA:

      (i) Consolidated EBITDA, less

      (ii) Capital Expenditures paid, less

      (iii) Restricted Payments paid, to the extent permitted by Section 10.2.7
of the Credit Agreement, less

      (iv) cash provisions for taxes paid based on income, provided that the
amount of such cash provisions for taxed based on income may not be less than
zero.

 

(b)  Consolidated Fixed Charges:

      (i) Consolidated Interest Expense, plus

      (ii) scheduled principal payments of any long-term Debt coming due in the
next period of equal length, plus

      (iii) payments made with respect to Capitalized Lease Obligations

 

$_____________

Average Excess Availability for the Fiscal Quarter most recently ended.

 

--------------------------------------------------------------------------------

 

ENVIRONMENTAL COVENANTS

 

In
compliance

Not in
compliance

Covenant

     

□

□

Environmental Covenants (Section 10.4)

 

If not in compliance with any of the foregoing, please provide a description
below:

 

Section No.

Description of Non-Compliance

   

_______

___________________________________________________________

 

___________________________________________________________

 

___________________________________________________________

 

___________________________________________________________

   

_______

___________________________________________________________

 

___________________________________________________________

 

___________________________________________________________

 

___________________________________________________________

   

_______

___________________________________________________________

 

___________________________________________________________

 

___________________________________________________________

 

___________________________________________________________

   

_______

___________________________________________________________

 

___________________________________________________________

 

___________________________________________________________

 

___________________________________________________________

   

 

 

--------------------------------------------------------------------------------

 

EXHIBIT G

 

FORM OF ASSIGNMENT AND ACCEPTANCE

 

Dated as of ______, 200_

 

Reference is made to the Amended and Restated Credit Agreement dated March 15,
2006 (at any time amended, restated, modified or supplemented, the “Credit
Agreement”), among REMINGTON ARMS COMPANY, INC., a Delaware corporation, the
other borrowers named therein (individually, a “Borrower” and collectively, the
“Borrowers”), the financial institutions from time to time party to the Credit
Agreement (“Lenders”), WACHOVIA BANK, NATIONAL ASSOCIATION, in its capacity as
Administrative and Collateral Agent for Lenders (in such capacity, the “Agent”),
BANK OF AMERICA, N.A. , in its capacity as Syndication Agent, and NATIONAL CITY
BUSINESS CREDIT, INC., in its capacity as Documentation Agent. Capitalized terms
used herein and not otherwise defined shall have the meanings assigned to such
terms in the Credit Agreement.

 

____________________________ (the “Assignor”) and
________________________________ (the “Assignee”) agree as follows:

 

1)          (A) Assignor hereby assigns to Assignee and Assignee hereby
purchases and assumes from Assignor (i) a principal amount of $________ of the
outstanding Revolver Loans held by Assignor (which amounts, according to the
records of Agent, represent _______% of the total principal amount of
outstanding Revolver Loans) and (ii) a principal amount of $__________ of
Assignor’s Revolver Commitment (which amount includes Assignor’s outstanding
Revolver Loans being assigned to Assignee pursuant to clause (i) above and
which, according to the records of Agent, represents ____% of the total Revolver
Commitments of Lenders under the Credit Agreement); (B) Assignor hereby assigns
to Assignee and Assignee hereby purchases and assumes from Assignor (i) a
principal amount of $________ of the outstanding Term Loan and (ii) a principal
amount of $_________ of Assignor’s Term Loan Commitment (which amount includes
Assignor’s outstanding Term Loan Advance being assigned to Assignee pursuant to
clause (B)(i) above and which, according to the records of Agent, represents
________% of the total Term Loan Commitments of the Lenders under the Credit
Agreement) (the items described in (A) and (B) above being herein collectively
referred to as (the “Assigned Interests”), together with an interest in the
Credit Documents corresponding to the Assigned Interest. This Agreement shall be
effective from the date (the “Assignment Effective Date”) on which Assignor
receives both (x) the principal amount of the Assigned Interest in the Revolver
Loans on the Assignment Effective Date, if any, and (y) a copy of this Agreement
duly executed by Assignee. From and after the Assignment Effective Date,
Assignee hereby expressly assumes, and undertakes to perform, all of Assignor’s
obligations in respect of Assignor’s Revolver Commitments to the extent, and
only to the extent, of Assignee’s Assigned Interest, and all principal,
interest, fees and other amounts which would otherwise be payable to or for
Assignor’s account in respect of the Assigned Interest shall be payable to or
for Assignee’s account, to the extent such amounts have accrued subsequent to
the Assignment Effective Date.

 

2)          Assignor (i) represents that as of the date hereof, the aggregate of
its Commitments under the Credit Agreement (without giving effect to assignments
thereof, which have not yet become effective) is $__________, and the
outstanding balance of its Loans (unreduced by any assignments thereof, which
have not yet become effective) is $__________; (ii) makes no representation or
warranty and assumes no responsibility with respect to any statements,
warranties or representations made in or in connection with the Credit Agreement
or the execution, legality, validity, enforceability, genuineness, sufficiency
or value of the Credit Agreement or any other instrument or document furnished
pursuant thereto, other than that Assignor is the legal and beneficial owner of
the interest being assigned by it hereunder and that such interest is free and
clear of any adverse claim; (iii) makes no representation or warranty and
assumes no

 

--------------------------------------------------------------------------------

 

responsibility with respect to the financial condition of Borrowers, the
performance or observance by any Borrower of any of its obligations under the
Credit Agreement or any of the Credit Documents[; and (iv) attaches the Notes
held by it and requests that Agent exchange such Notes for new Notes payable to
Assignee and the Assignor in the principal amounts set forth on Schedule
Ahereto].

 

3)          Assignee (i) represents and warrants that it is legally authorized
to enter into this Assignment and Acceptance; (ii) confirms that it has received
a copy of the Credit Agreement, together with copies of the most recent
financial statements delivered pursuant to the terms thereof, and copies of such
other Credit Documents and information as it has deemed appropriate to make its
own credit analysis and decision to enter into this Assignment and Acceptance;
(iii) agrees that it shall, independently and without reliance upon Assignor and
based on such documents and information as it shall deem appropriate at the
time, continue to make its own credit decisions in taking or not taking action
under the Credit Agreement; (iv) confirms that it is eligible to become an
Assignee; (v) appoints and authorizes Agent to take such action as Agent on its
behalf and to exercise such powers under the Credit Documents as are delegated
to Agent, by the terms thereof, together with such powers as are incidental
thereto; (vi) agrees that it will strictly observe and perform all the
obligations that are required to be performed by it as a “Lender” under the
terms of the Credit Agreement and the other Credit Documents; and (vii) agrees
that it will keep confidential all information with respect to Borrower
furnished to it by Borrower or the Assignor to the extent provided in the Credit
Agreement.

 

4)          Assignor acknowledges and agrees that it will not sell or otherwise
dispose of the Assigned Interests or any portion thereof, or grant any
participation therein, in a manner which, or take any action in connection
therewith which, would violate the terms of any of the Credit Documents.

 

5)          This Agreement and all rights and obligations shall be interpreted
in accordance with and governed by the laws of the State of New York. If any
provision hereof would be invalid under Applicable Law, then such provision
shall be deemed to be modified to the extent necessary to render it valid while
most nearly preserving its original intent; no provision hereof shall be
affected by another provision’s being held invalid.

 

6)          Each notice or other communication hereunder shall be in writing,
shall be sent by messenger, by telecopy or facsimile transmission or by
first-class mail, shall be deemed given when sent and shall be sent as follows:

 

If to Assignee, to the following address (or to such other address as Assignee
may designate from time to time):

 

__________________________

__________________________

__________________________

 

If to Assignor, to the following address (or to such other address as Assignor
may designate from time to time):

__________________________

__________________________

__________________________

__________________________

 

Payments hereunder shall be made by wire transfer of immediately available U.S.
Dollars as follows:

 

 

-2-

 

--------------------------------------------------------------------------------

 

 

If to Assignee, to the following account (or to such other account as Assignee
may designate from time to time):

 

__________________________

ABA No.__________________

__________________________

Account No.________________

Reference: _________________

 

If to Assignor, to the following account (or to such other account as Assignor
may designate from time to time):

__________________________

__________________________

__________________________

ABA No.__________________

For Account of:_____________

Reference: ________________

 

IN WITNESS WHEREOF, the parties hereto have caused this Assignment and
Acceptance to be executed and delivered by their respective duly authorized
officers, as of the date first above written.

 

[NAME OF ASSIGNOR]

(“Assignor”)

 

By:_________________________________
      Title:_____________________________

 

 

 

[NAME OF ASSIGNEE]

(“Assignee”)

 

By:_________________________________
      Title:_____________________________

 

 

 

-3-

 

--------------------------------------------------------------------------------

 

 

SCHEDULE A TO ASSIGNMENT AND ACCEPTANCE

 

 

 

-4-

 

--------------------------------------------------------------------------------

 

 

EXHIBIT H

 

FORM OF NOTICE

 

Reference is made to (i) the Amended and Restated Credit Agreement dated March
15, 2006 (at any time amended, restated, modified or supplemented, the “Credit
Agreement”), among REMINGTON ARMS COMPANY, INC., a Delaware corporation, the
other borrowers named therein (individually, a “Borrower” and collectively, the
“Borrowers”), the financial institutions from time to time party to the Credit
Agreement (“Lenders”), WACHOVIA BANK, NATIONAL ASSOCIATION, in its capacity as
Administrative and Collateral Agent for Lenders (in such capacity, the “Agent”),
BANK OF AMERICA, N.A., in its capacity as Syndication Agent, and NATIONAL CITY
BUSINESS CREDIT, INC., in its capacity as Documentation Agent, and (ii) the
Assignment and Acceptance dated as of ___________________________, 200__ (the
“Assignment Agreement”) between
_______________________________________________________________________ (the
“Assignor”) and ________________________________________________________ (the
“Assignee”). Except as otherwise defined herein, capitalized terms used herein
which are defined in the Credit Agreement are used herein with the respective
meanings specified therein.

 

The Assignor hereby notifies Borrowers and Agent of Assignor’s intent to assign
to Assignee pursuant to the Assignment Agreement a principal amount of (i)
$________ of the outstanding Revolver Loans held by Assignor, (ii) $___________
of Assignor’s Revolver Commitment (which amount includes the Assignor’s
outstanding Revolver Loans being assigned to Assignee pursuant to clause (i)
above), (iii) $_______________ of the outstanding Term Loan Advance held by
Assignor, and (iv) $_____________ of Assignor’s Term Loan Commitment (which
amount includes Assignor’s outstanding portion of the Term Loan Advance being
assigned to Assignee pursuant to clause (iii) above), together with an interest
in the Credit Documents corresponding to the interest in the Loans and
Commitments so assigned. Pursuant to the Assignment Agreement, Assignee has
expressly assumed all of Assignor’s obligations under the Credit Agreement to
the extent of the Assigned Interest (as defined in the Assignment Agreement).

 

For purposes of the Credit Agreement, Agent shall deem Assignor’s share of the
Revolver Commitment and Term Loan Commitment to be reduced by $_________ and
$_________ respectively, and Assignee’s share of the Revolver Commitment and
Term Loan Commitment to be increased by $_________ and $_________ respectively.

 

The address of the Assignee to which notices, information and payments are to be
sent under the terms of the Credit Agreement is:

 

________________________

________________________

________________________

________________________

 

Assignees LIBOR Lending Office address is as follows:

 

________________________

________________________

________________________

________________________

 

 

--------------------------------------------------------------------------------

 

This Notice is being delivered to Borrowers and Agent pursuant to the Credit
Agreement. Please acknowledge your receipt of this Notice by executing and
returning to Assignee and Assignor a copy of this Notice.

 

IN WITNESS WHEREOF, the undersigned have caused the execution of this Notice, as
of _________________, 200_.

 

 

[NAME OF ASSIGNOR]

(“Assignor”)

 

By:_________________________________
      Title:_____________________________

 

 

 

 

[NAME OF ASSIGNEE]

(“Assignee”)

 

By:_________________________________
      Title:_____________________________

 

 

ACKNOWLEDGED AND AGREED TO

AS OF THE DATE SET FORTH ABOVE:

 

BORROWERS:

 

REMINGTON ARMS COMPANY, INC.

 

By:____________________________

 

Title:_________________________

 

 

RA BRANDS, L.L.C.

 

By:____________________________

 

Title:_________________________

 

 

 

 

 

 

 

-2-

 

--------------------------------------------------------------------------------

 

 

WACHOVIA BANK, NATIONAL ASSOCIATION,

as Agent

 

By:____________________________

 

Title:_________________________

 

-3-

 

--------------------------------------------------------------------------------

 

 

EXHIBIT I

FORM OF U.S. TAX COMPLIANCE CERTIFICATE

Reference is made to the Loan(s) held by the undersigned pursuant to the Amended
and Restated Credit Agreement (as amended, supplemented, waived or otherwise
modified from time to time, the “Credit Agreement”), made on March 15, 2006, by
and among Remington Arms Company, Inc., a Delaware corporation (“Remington”),
the other borrowers named therein (together with Remington, the “Borrowers”),
the various financial institutions from time to time parties thereto (the
“Lenders”), Wachovia Bank, National Association, a national banking association
in its capacity as administrative and collateral agent for the Lenders (the
“Agent”), Bank of America, N.A., in its capacity as syndication agent and
National City Business Credit, Inc., in its capacity as documentation agent. The
undersigned hereby certifies under penalties of perjury that:

(1)

The undersigned is the sole record and beneficial owner of the Loan(s) (as well
as any Note(s) evidencing such Loan(s)) registered in its name;

(2)

The income from the Loan(s) held by the undersigned is not effectively connected
with the conduct of a trade or business within the United States;

(3)

The undersigned is not a bank (as such term is used in Section 881(c)(3)(A) of
the Internal Revenue Code of 1986, as amended (the “Code”)), is not subject to
regulatory or other legal requirements as a bank in any jurisdiction, and has
not been treated as a bank for purposes of any tax, securities law or other
filing or submission made to any governmental authority, any application made to
a rating agency or any qualification for any exemption from any tax, securities
law or other legal requirements;

(4)

The undersigned is not a 10-percent shareholder of the Borrowers within the
meaning of Section 871(h)(3)(B) of the Code; and

(5)

The undersigned is not a controlled foreign corporation receiving interest from
a related person within the meaning of Section 881(c)(3)(C) of the Code.

The undersigned has furnished you with a certificate of its non-U.S. person
status on Internal Revenue Service Form W-8BEN. By executing this certificate,
the undersigned agrees that (1) if the information provided on this certificate
changes, the undersigned shall so inform the Borrowers (for the benefit of the
Borrowers and the Agent) in writing within thirty days of such change and (2)
the undersigned shall furnish the Borrowers (for the benefit of the Borrowers
and the Agent) a properly completed and currently effective certificate in
either the calendar year in which payment is to be made by the Borrowers to the
undersigned, or in either of the two calendar years preceding such payment.

 

--------------------------------------------------------------------------------

 

Unless otherwise defined herein, terms defined in the Credit Agreement and used
herein shall have the meanings given to them in the Credit Agreement.

[NAME OF LENDER]

 

By:_______________________

[Address]

 

Dated:__________________________

 

 

-2-

 

--------------------------------------------------------------------------------

 

 

SUPPLEMENTS TO SCHEDULES

FOR BRANDS TO BE ATTACHED BY BORROWERS

 

Schedule 8.1.1

Business Locations

Schedule 9.1.1

Jurisdictions in Which Each Borrower and Each Subsidiary Is Authorized to Do
Business

Schedule 9.1.4

Capital Structure

 

Schedule 9.1.5

Corporate Names

 

Schedule 9.1.9

Financial Statements

 

Schedule 9.1.12

Surety Obligations

 

Schedule 9.1.13

Tax Identification Numbers of Borrowers and Subsidiaries

 

Schedule 9.1.18

Contracts Restricting Borrowers’ and Subsidiaries’ Right to Incur Debts

Schedule 9.1.19

Litigation

 

Schedule 9.1.21

Capitalized and Operating Leases

 

Schedule 9.1.22

Pension Plans

 

Schedule 9.1.24

Collective Bargaining Agreements; Labor Controversies

 

Schedule 9.1.27

Investments

 

Schedule 9.1.28

Bank Accounts

 

Schedule 9.1.30

Environmental Matters

 

Schedule 10.2.5

Permitted Liens

 

Schedule 10.2.21

Hedging Agreements