Exhibit 10.1

HASKINS SETTLEMENT AGREEMENT

CONFIDENTIAL SETTLEMENT AGREEMENT AND RELEASE

          This CONFIDENTIAL SETTLEMENT AGREEMENT AND RELEASE (“Settlement
Agreement”), is made and effective as of the 16th day of March, 2007, between:

 

 

 

 

1)

Remington Arms Company, Inc. (“Remington”);

 

 

 

 

2)

RACI Holding, Inc. (“RACI”);

 

 

 

 

3)

The Clayton & Dubilier Private Equity Fund IV, L.P. (“Fund IV”);

 

 

 

 

4)

Clayton & Dubilier Associates IV Limited Partnership (“CD IV”);

 

 

 

 

5)

Clayton Dubilier & Rice, Inc. (“CDR”);

 

 

 

 

6)

Thomas Millner

 

 

 

 

7)

Leon Hendrix

 

 

 

 

8)

Michael Babiarz

 

 

 

 

9)

Bruckmann, Rosser, Sherrill & Co., LLC, Bruckmann, Rosser, Sherrill & Co. II,
L.P., BRSE, L.L.C., Bruckman Rosser Sherrill & Co., Inc., (collectively “BRS”);
and

 

 

 

 

10)

Plaintiff Robert Haskin (“Plaintiff Haskin”).

          Remington, RACI, Fund IV, CD IV, CDR, Thomas Millner, Leon Hendrix and
Michael Babiarz shall be referred to collectively as the “Remington Defendants.”

          All of the parties listed above shall be referred to collectively as
“the Parties.”

RECITALS

                    WHEREAS, on January 20, 2006, Plaintiff Haskin filed a
lawsuit in the General Superior Court of Justice, Superior Court Division,
Guilford County, North Carolina, (Civil Action No. 06-CVS-3083) (the “Lawsuit”),
against the Remington Defendants and BRS;

                    WHEREAS, the Remington Defendants and BRS have expressly
denied any wrongdoing or liability to Plaintiff Haskin of any kind whatsoever;
and

                    WHEREAS, while expressly denying and disclaiming wrongdoing
or liability of any kind whatsoever, the Parties have agreed to enter into this
Settlement Agreement in order to avoid further expense, inconvenience, and the
distraction of the legal proceedings, and to put to rest all claims between
Plaintiff Haskin and the Remington Defendants and BRS that were or might have
been alleged in the Lawsuit.

                    NOW, THEREFORE, for good and valuable consideration,
including the mutual covenants herein contained, the Parties hereby agree as
follows:

 

 

A.

Confidentiality of Settlement Agreement.

          The Parties agree to keep the terms of this Settlement Agreement
confidential; provided however, that the Parties may disclose the terms of this
Settlement Agreement to their attorneys, accountants and other professional
advisors and/or as required by law for tax or legal purposes, and the Remington
Defendants and BRS may disclose the terms of this Settlement Agreement, under
the terms of a Confidentiality Agreement, if requested to do so in connection
with a potential acquisition of some or all of Remington or RACI. If a party to
this Settlement Agreement determines that disclosure of the terms of this
Settlement Agreement must be made in connection with any governmental or
judicial proceeding, or must be included in any public filing, such party shall
notify the other party in writing immediately upon becoming aware of such
requirement. If the other party disputes the need for the disclosure, the party
requested to make the disclosure shall use its best efforts to obtain permission
from the requesting party to omit or redact the highly confidential terms of the
Settlement Agreement prior to its disclosure. Disclosure of any terms or
conditions of this Settlement Agreement under this section shall not diminish
the confidential nature thereof.

 

 

B.

No Admission of Liability.

          None of the Parties admit any wrongdoing or liability by virtue of
entering into this Settlement Agreement.

 

 

C.

Payment.

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          On or before March 16, 2007, Remington shall pay Plaintiff Haskin a
total of seven hundred and seventy-five thousand dollars ($775,000). The payment
shall be wired to an escrow account maintained by the law firm of Robinson
Lawing, LLP, where it shall be held pending full execution of this Agreement and
the filing of a stipulated dismissal with prejudice of the Lawsuit. Remington
represents that it is in compliance with all bank and debt covenants, and that
performance under this Agreement will not constitute a default of any such
covenants or put Remington in default of any such covenants.

 

 

D.

Dismissal of the Lawsuit.

          On or before March 16, 2007, Plaintiff Haskin shall dismiss with
prejudice the Lawsuit.

 

 

E.

Costs and Attorneys’ Fees.

          Each Party shall be solely responsible for its own legal expenses,
costs, and fees in connection with the Lawsuit.

 

 

F.

Mutual Releases.

          1.          Except as limited herein, Plaintiff Haskin hereby
irrevocably and unconditionally releases and forever discharges the Remington
Defendants, their predecessors, successors and assigns, each of their respective
past, present and future parent entities, shareholders, partners, members,
owners, affiliated entities, subsidiaries, divisions, departments, joint
venturers, licensors, licensees, trustees, and all of their respective
directors, officers, agents, employees, attorneys, insurers, administrators,
successors, and assigns, from any and all claims, demands, actions, causes of
action, suits, debts, liens, contracts, liabilities, agreements, costs,
expenses, or losses of any type, whether known or unknown, fixed or contingent,
suspected or unsuspected, accrued or unaccrued, which Plaintiff Haskin now has,
or may hereafter have, of any kind whatsoever; PROVIDED, HOWEVER, that
notwithstanding the foregoing or anything else in this Settlement Agreement,
Remington and RACI expressly understand and acknowledge that Plaintiff Haskin is
not hereby and does not release his right to continue purchasing insurance
through Remington as provided in the Letter Agreement of December 5, 1996,
entered into by and between Plaintiff Haskin, Remington and RACI.

          2.          Plaintiff Haskin hereby irrevocably and unconditionally
releases and forever discharges BRS, their predecessors, successors and assigns,
each of their respective past, present and future parent entities, shareholders,
partners, members, owners, affiliated entities, subsidiaries, divisions,
departments, joint venturers, licensors, licensees, trustees, and all of their
respective directors, officers, agents, employees, attorneys, insurers,
administrators, successors, and assigns, from any and all claims, demands,
actions, causes of action, suits, debts, liens, contracts, liabilities,
agreements, costs, expenses, or losses of any type, whether known or unknown,
fixed or contingent, suspected or unsuspected, accrued or unaccrued, which
Plaintiff Haskin now has, or may hereafter have, of any kind whatsoever.

          3.          The Remington Defendants, by and on behalf of their
predecessors, successors and assigns, each of their respective past, present and
future parent entities, shareholders, partners, members, owners, affiliated
entities, subsidiaries, divisions, departments, joint venturers, licensors,
licensees, trustees, and all of their respective directors, officers, agents,
employees, attorneys, insurers, administrators, successors, and assigns, hereby
irrevocably and unconditionally release and forever discharge Plaintiff Haskin
from any and all claims, demands, actions, causes of action, suits, debts,
liens, contracts, liabilities, agreements, costs, expenses, or losses of any
type, whether known or unknown, fixed or contingent, suspected or unsuspected,
accrued or unaccrued, which the Remington Defendants now have, or may hereafter
have, of any kind whatsoever.

          4.          BRS, by and on behalf of their predecessors, successors
and assigns, each of their respective past, present and future parent entities,
shareholders, partners, members, owners, affiliated entities, subsidiaries,
divisions, departments, joint venturers, licensors, licensees, trustees, and all
of their respective directors, officers, agents, employees, attorneys, insurers,
administrators, successors, and assigns, hereby irrevocably and unconditionally
release and forever discharge Plaintiff Haskin from any and all claims, demands,
actions, causes of action, suits, debts, liens, contracts, liabilities,
agreements, costs, expenses, or losses of any type, whether known or unknown,
fixed or contingent, suspected or unsuspected, accrued or unaccrued, which BRS
now has, or may hereafter have, of any kind whatsoever.

          5.          In connection with the aforementioned releases, the
Parties agree not to sue one another on any of the released claims. If a party
does so, then the non-violating party shall be entitled to recover from the
violating party its or his reasonable attorneys’ fees and costs incurred in
defending any action involving a released claim.

 

 

G.

No Assignment of Claims.

          Plaintiff Haskin represents and warrants that there has been, and
there will be, no assignment or other transfer or disposition of any interest or
claim in any matter, or part or portion thereof, which has otherwise been
released in this Settlement Agreement. Plaintiff Haskin understands and agrees
that the Remington Defendants and

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BRS, in entering into this Settlement Agreement, are relying on the
representation and warranty of this paragraph, and that any violation of this
Paragraph shall give rise to a cause of action by the Remington Defendants
and/or BRS to seek to recover any and all payments made pursuant to this
Settlement Agreement. For the avoidance of doubt, this Section G shall not
preclude a payment or payments by Plaintiff Haskin to other persons or entities
of a portion of the payment provided for by Section C.

          Each of the Remington Defendants and BRS warrant and represent to
Plaintiff Haskin that there has been, and there will be, no assignment or other
transfer or disposition by the Remington Defendants or BRS of any interest or
claim in any matter, or part or portion thereof, which has otherwise been
released in this Settlement Agreement. Each of the Remington Defendants and BRS
understands and agrees that Plaintiff Haskin, in entering into this Settlement
Agreement, is relying on the representation and warranty of this paragraph, and
that any violation of this Paragraph shall give rise to a cause of action by
Plaintiff Haskin to seek to recover damages, if any.

 

 

H.

Agreement not to Aid or Assist With Future Claims.

          1.          Plaintiff Haskin, by and on behalf of his heirs,
executors, administrators and attorneys, represents and warrants that he has not
and will not aid, assist, participate, or cooperate in any manner whatsoever
with anyone who has or may wish to file a claim against any or all of the
parties released under Section F. (1) and (2) above, and further that he will
not request or urge anyone to make or file such a claim. The parties understand
and agree that Plaintiff Haskin will not be construed or deemed to have violated
the terms of this paragraph if Plaintiff Haskin is compelled by legal process to
produce documents or give testimony. In the event Plaintiff Haskin is served
with such legal process, he shall give notice to the Remington Defendants and
BRS of such fact. Plaintiff Haskin understands and agrees that the Remington
Defendants and BRS, in entering into this Settlement Agreement, are relying on
the representation and warranty of this paragraph, and that any violation of
this Paragraph shall give rise to a cause of action by the Remington Defendants
and/or BRS to seek to recover any and all payments made pursuant to this
Settlement Agreement.

          2.          The Remington Defendants, by and on behalf of their
officers, directors, shareholders, partners, members, employees, agents
representatives and attorneys, agree that they will not aid, assist,
participate, or cooperate in any manner whatsoever with anyone who has or may
wish to file a claim against Plaintiff Haskin, and further that they will not
request or urge anyone to make or file such a claim. The parties understand and
agree that a Remington Defendant will not be construed or deemed to have
violated the terms of this paragraph if such Remington Defendant is compelled by
legal process to produce documents or give testimony. In the event that any of
the Remington Defendants is served with such legal process, it or he, as the
case may be, shall give notice to the Plaintiff Haskin of such fact. Each of the
Remington Defendants understands and agrees that Plaintiff Haskin, in entering
into this Settlement Agreement, is relying on the representation and warranty of
this paragraph, and that any violation of this Paragraph shall give rise to a
cause of action by Plaintiff Haskin to seek to recover damages, if any.

          3.          BRS, by and on behalf of their officers, directors,
shareholders, partners, members, employees, agents representatives and
attorneys, agree that they will not aid, assist, participate, or cooperate in
any manner whatsoever with anyone who has or may wish to file a claim against
Plaintiff Haskin, and further that they will not request or urge anyone to make
or file such a claim. The parties understand and agree that BRS will not be
construed or deemed to have violated the terms of this paragraph if BRS is
compelled by legal process to produce documents or give testimony. In the event
that BRS is served with such legal process, it shall give notice to the
Plaintiff Haskin of such fact. BRS understands and agrees that Plaintiff Haskin,
in entering into this Settlement Agreement, is relying on the representation and
warranty of this paragraph, and that any violation of this Paragraph shall give
rise to a cause of action by Plaintiff Haskin to seek to recover damages, if
any.

 

 

I.

Representation by Counsel.

          The Parties acknowledge that each has had the benefit and advice of
independent legal counsel in connection with this Settlement Agreement, and that
they each understand the meaning of each term of this Settlement Agreement, and
the consequences of signing this Settlement Agreement.

 

 

J.

Agreement Entered Into With Independent Judgment.

          The Parties further declare and represent that they have reviewed this
Settlement Agreement in its entirety, and that in making this Settlement
Agreement they have relied wholly upon their own judgment, belief, knowledge,
investigation, independent legal advice, and research into the nature, extent,
and duration of losses and damages caused by the other, if any, and upon their
independent assessment of future business considerations, legal fees, and

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expenses they would incur should the aforementioned legal proceedings continue,
and that they have not been influenced to any extent whatsoever in making this
Settlement Agreement by any representations or statements by any other party, or
by any person or persons representing or acting for any other party.

          The Parties and their attorneys have cooperated in the drafting and
preparation of this Settlement Agreement. Any construction of this Settlement
Agreement shall not be construed against either Party as the draftsman of this
Settlement Agreement.

 

 

K.

Final Agreement and no Oral Modification.

          This Settlement Agreement contains the entire agreement between
Plaintiff Haskin on the one hand and the Remington Defendants and BRS on the
other hand, and all previous understandings, agreements, and communications
prior to the date hereof, whether express or implied, oral or written, relating
to the subject matter of this Settlement Agreement, are fully and completely
extinguished and superseded by this Settlement Agreement. This Settlement
Agreement shall not be altered, amended, modified, or otherwise changed, except
by a writing duly signed by the Parties.

 

 

L.

Severability.

          If any of the provisions, terms, clauses, or waivers or releases of
claims or rights contained in this Settlement Agreement are declared unlawful,
unenforceable, or ineffective in a legal forum of competent jurisdiction, then
such provisions, terms, clauses, or waivers or releases of claims or rights
shall be deemed severable, such that all other provisions, terms, clauses, and
waivers and releases of claims and rights contained in this Settlement Agreement
shall remain valid and binding upon the Parties.

 

 

M.

Execution.

          Each Party hereto covenants and represents that it is fully authorized
to enter into this Settlement Agreement and to carry out the obligations
provided for herein.

          This Settlement Agreement may be executed in counterparts, which when
taken together shall constitute one Agreement.

          This Settlement Agreement shall be binding upon and inure to the
benefit of the successors and assigns of the Parties hereto.

 

 

N.

Headings.

          The captions used in this Settlement Agreement are inserted for
convenience and shall not be deemed a part of this Settlement Agreement for
construction or interpretation.

          IN WITNESS HEREOF, the Remington Defendants, BRS, and Plaintiff
Haskin, intending to be bound as of the date set forth above, have executed this
Settlement Agreement as follows:

[REMAINDER OF THIS PAGE DELIBERATELY LEFT BLANK]

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Dated: March 16, 2007

 

Bruckmann, Rosser, Sherrill & Co., Inc.

 

 

 

 

 

By:

/s/ Paul Kaminski

 

 

 

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Name: Paul Kaminski

 

 

 

 

 

Title: CFO

 

 

 

Dated: March 16, 2007

Bruckmann, Rosser, Sherrill & Co. II, L.P

 

 

 

 

 

By:

/s/ Paul Kaminski

 

 

 

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Name: Paul Kaminski

 

 

 

 

 

Title: Member & GP BRSE, LLC

 

 

 

Dated: March 16, 2007

Bruckmann, Rosser, Sherrill & Co., LLC

 

 

 

 

 

By:

/s/ Paul Kaminski

 

 

 

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Name: Paul Kaminski

 

 

 

 

 

Title: Member

 

 

 

Dated: March 16, 2007

BRSE, L.L.C.

 

 

 

 

 

By:

/s/ Paul Kaminski

 

 

 

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Name: Paul Kaminski

 

 

 

 

 

Title: Member

 

 

 

Dated: March 16, 2007

Remington Arms Company, Inc.

 

 

 

 

 

By:

/s/ Thomas L. Millner

 

 

 

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Name: Thomas L. Millner

 

 

 

 

 

Title: President & CEO

 

 

 

Dated: March 16, 2007

RACI Holding, Inc.

 

 

 

 

 

By:

/s/ Thomas L. Millner

 

 

 

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Name: Thomas L. Millner

 

 

 

 

 

Title: President & CEO

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Dated: March 16, 2007

The Clayton & Dubilier Private Equity Fund IV L.P.

 

 

 

 

 

By:

/s/ Donald J. Gogel

 

 

 

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Name: Donald J. Gogel

 

 

 

 

 

Title: President & CEO

 

 

 

Dated: March 16, 2007

Clayton & Dubilier Associates IV Limited Partnership

 

 

 

 

 

By:

/s/ Donald J. Gogel

 

 

 

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Name: Donald J. Gogel

 

 

 

 

 

Title: President & CEO

 

 

 

Dated: March 16, 2007

Clayton Dubilier & Rice, Inc.

 

 

 

 

 

By:

/s/ Donald J. Gogel

 

 

 

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Name: Donald J. Gogel

 

 

 

 

 

Title: President & CEO

 

 

 

Dated: March 16, 2007

Thomas Millner

 

 

 

 

 

Name:

/s/ Thomas Millner

 

 

 

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Dated: March 16, 2007

Leon Hendrix

 

 

 

 

 

Name:

/s/ Leon Hendrix

 

 

 

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Dated: March 16, 2007

Michael Babiarz

 

 

 

 

 

Name:

/s/ Michael Babiarz

 

 

 

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Dated: March 16, 2007

Robert Haskin

 

 

 

 

 

Name:

/s/ Robert Haskin

 

 

 

 

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