Document:

<PAGE>   1
                                                                   EXHIBIT 10.12

[LOGO] Western Massachusetts Electric
                                          174 Brush Hill Avenue, W.
Springfield,                              MA 01089

                                          Western Massachusetts Electric Company
                                          P.O. Box 2010
                                          West Springfield, MA 01090-2010
                                          (413)785-5871
                                          Fax (413)787-9109

                                          The Northeast Utilities System

July 6, 1998

Mr. Mauro De Maio
Facilities Manager
Smith & Wesson
2100 Roosevelt Avenue
Springfield, MA 01102-2208

Dear Mr. De Maio:

Reference:  Energy Efficiency Services Project
            #WM-97-S-645 Revision 1 Smith & Wesson Induction Furnaces

This revised agreement entirely replaces the previous agreement, dated February
26, 1998 and executed on March 6, 1998. To encourage electric energy efficiency,
Western Massachusetts Electric Company (hereinafter, "WMECO") is pleased to
offer Smith & Wesson (hereinafter, the "Participant") Energy Efficiency Services
in connection with the Participant's 400,000 square foot facility located at
2100 Roosevelt Avenue, Springfield, Massachusetts subject to the following terms
and conditions:

1.    The Energy Efficiency Services Standard Terms and Conditions and Exhibit A
      are attached and are considered part of this Agreement.

2.    All Energy Efficiency Measures ("EEMs" or "measures") must be installed by
      the Participant and accepted by both the Participant and WMECO within one
      (1) year of the Participant's execution of this Agreement.

3.    The Participant shall provide invoices for all measures installed as
      described in Exhibit A of this Agreement.

Smith & Wesson Induction Furnaces
WM-97-S-645 Revision 1  July 6, 1998                                 Page 1 of 7
<PAGE>   2
4.    WMECO agrees to pay incentives for all EEMs that comply with the
      Standard Terms and Conditions and Exhibit A up to the amounts specified
      for the individual EEMs totaling approximately $424,362.00 if all of
      the EEMs are installed. Payment will be made to

                              Smith & Wesson Corp.
      ------------------------------------------------------------------
      (type or print the name of the company or individual above)
      as indicated on the attached Form W-9, "Request for Taxpayer
      Identification Number and Certification", attn.: Mauro De Maio
      following inspection/commissioning. As previously discussed regarding
      the implementation plan, WMECO commits to incentive payments for
      installed EEMs as follows:

<TABLE>
<S>                                                   <C>
           1998 payment (Machine A) will not exceed:  $141,454.00
           1999 payment (Machines B & C) balance:     $282,908.00
</TABLE>

5.    The listing of a specific manufacturer in this Agreement does not
      represent an endorsement of a specific product by WMECO. Listed
      manufacturers are those proposed by the Participant in their application.
      The Participant may substitute an equivalent product, which will produce
      equal or greater energy savings than the product originally proposed in
      this Agreement, with the prior approval of WMECO.

6.    The Participant is not obligated to install any of the measures referred
      to in this Agreement, and, at any time, may decide to forego the listed
      incentive payments, and to forfeit all or part of the reimbursement of the
      Participant's cost for the energy analysis report.

7.    This Agreement shall be signed before any measures are installed. No
      payment shall be made for EEMs not listed in Exhibit A, or for measures
      installed before this Agreement is signed, unless a prior agreement was
      established with WMECO.

8.    The Participant may propose changes to the scope of this Agreement by
      giving written notice to WMECO. No change by the Participant shall be
      recognized without written approval of WMECO. This Agreement may not be
      modified or amended except in writing signed by both parties.

9.    This Agreement shall be administered and interpreted under the laws of the
      Commonwealth of Massachusetts. If any part is found to be in conflict with
      applicable laws, such part shall be inoperative, null and void insofar as
      it is in conflict with said laws, but the remainder of the terms and
      conditions shall continue in full force and effect.

If the Participant agrees to the terms of this Agreement, please sign both
copies and return both copies to me at the address indicated on page 1 for
countersignature. This

Smith & Wesson Induction Furnaces
WM-97-S-645 Revision 1  July 6, 1998                                 Page 2 of 7
<PAGE>   3
Agreement shall be valid only if accepted by Participant, accepted by the owner
of the facility and countersigned by WMECO within thirty (30) days from the date
of this Letter of Agreement.

Sincerely,

/s/ [signature not legible] for

Edward J. O'Connor
Project Administrator
WMECO Conservation & Load Management

Accepted By: Smith & Wesson

/s/ John A. Kelly
------------------------------------

John A. Kelly
------------------------------------
Name (Print)

Vice President
Title of Participant

7/6/98
-------------------------------------           -------------------------------
Date                                            Estimated Date of
                                                Installation of Measures

Does the Participant own the facility described herein?                     YES

Accepted By:                        Western Massachusetts Electric Company

/s/ Robert G. Abair
------------------------------------------
Robert G. Abair
Vice President and Chief Administrative Officer
July 6, 1998
------------------------------------------
Date

Smith & Wesson Induction Furnaces
WM-97-S-645 Revision 1  July 6, 1998                                 Page 3 of 7
<PAGE>   4
Attachments to this agreement:

1.    Energy Efficiency Services Standard Terms and Conditions
2.    Form W-9, "Request for Taxpayer Identification Number and Certification"
      IMPORTANT   This is to be filled out at the time this agreement is
      signed
3.    Exhibit A (Total number of pages: 3)
4.    N/A
5.    N/A

Smith & Wesson Induction Furnaces
WM-97-S-645 Revision 1  July 6, 1998                                 Page 4 of 7
<PAGE>   5
                    Western Massachusetts Electric Company

                          ENERGY EFFICIENCY SERVICES

                        STANDARD TERMS AND CONDITIONS

1.    The Participant shall be responsible for the design and installation of
      the Energy Efficiency Measures (EEMs) contained in WMECO's Exhibit A of
      the Letter of Agreement.

2.    The Participant shall obtain all necessary permits and comply with all
      applicable laws, ordinances, building codes, and regulations of all
      appropriate governing authorities. Moreover, the Participant shall be
      responsible for any infraction or violation thereof, and any expense or
      damage resulting therefrom.

3.    The party receiving incentives shall be responsible for any tax liability
      associated with incentive payments. WMECO will issue a Form 1099 to all
      Participants who receive more than $600 of incentives per year.

4.    To be eligible for an incentive payment, the project must be inspected and
      verified to be installed and operating in accordance with Exhibit A, by
      both WMECO and the Participant. The Participant shall allow WMECO
      reasonable access to the facility to conduct such inspections and shall
      supply WMECO with copies of any documents necessary for it to verify that
      the project complies with the Letter of Agreement requirements.

5.    WMECO will make no adjustments to the per unit incentives, even if the
      actual incremental cost varies from what was estimated in Exhibit A;
      however, the total amount of the incentive payment may be adjusted for the
      actual number of units installed, as long as a per unit incentive is
      listed and allowed.

6.    Only Participants who are "full-distribution-service" customers are
      eligible for full incentives. A full-distribution-service customer is one
      that receives all of the electricity needed for the facility described in
      the Letter of Agreement via WMECO's distribution equipment and employs
      standby self-generation at that facility only during interruption of
      WMECO's distribution services.

7.    If the Participant's facility is not and/or will not be a
      full-distribution-service customer of WMECO at the time incentives are
      paid, the incentive will be prorated by multiplying the full incentive by
      the percentage of the facility's total electrical needs that is delivered
      via WMECO's distribution equipment.

Smith & Wesson Induction Furnaces
WM-97-S-645 Revision 1  July 6, 1998                                 Page 5 of 7
<PAGE>   6
8.    If, within three years after the last incentive payment is made, the
      Participant either becomes a non-full-distribution-service customer, or
      increases the use of electricity from self-generation equipment (at times
      when there is no interruption of WMECO's distribution services), the
      Participant must repay WMECO a prorated portion of the incentive.

9.    In the event that the Participant has any outstanding balances due and
      owing to WMECO or any of its corporate affiliates, any incentive payment
      may be withheld and used to set off such outstanding debt(s) regardless of
      to whom the incentive payment would have been made.

10.   Equipment for which WMECO has provided incentives is expected to remain in
      use and in its original location for at least three years, beginning when
      the final incentive payment is made for that project. Otherwise, WMECO
      reserves the right to demand a refund of all incentive sums paid for such
      equipment.

11.   WMECO does not guarantee that the Participant's actual savings will occur
      at the level projected in the energy analysis report. Factors that are
      impossible to predict, such as facility expansion, cutbacks, or weather
      changes, all may impact the Participant's future electric energy use.

12.   WMECO reserves the right to perform, at its own expense, and within two
      years of project completion, a confidential project evaluation, under
      actual operating conditions, to help determine the actual energy savings.
      The Participant shall provide information as necessary to facilitate this
      evaluation.

13.   WMECO may, by written notice, terminate the Letter of Agreement for
      convenience, in whole or in part. In this event, WMECO shall pay the
      unit or pro rata price for the performed and accepted portion of the
      project, and a reasonable amount, not otherwise recoverable from other
      sources, for the unperformed or unaccepted portion of the project,
      provided that the total compensation does not exceed the total amount
      in the Letter of Agreement. No allowance will be made for anticipated
      profits. WMECO shall not be liable for any consequential or incidental
      damages for termination under this Article.

14.   WMECO may, by written notice, terminate the Letter of Agreement for the
      Participant's refusal or failure to comply with its provisions, in whole
      or in part.

15.   If the Participant requests additional time to complete the EEMs as
      defined in the Letter of Agreement, WMECO may grant an extension, in
      accordance with the Energy Efficiency Services Standard Terms and
      Conditions then in effect.

Smith & Wesson Induction Furnaces
WM-97-S-645 Revision 1  July 6, 1998                                 Page 6 of 7
<PAGE>   7
16.   The Participant shall hold harmless WMECO, its directors, officers,
      employees, agents, affiliated companies, and representatives, against and
      from any and all loss, claims, actions, or suits, including cost and
      reasonable attorneys' fees, arising from the Participant's participation
      in WMECO's Energy Efficiency Services.

17.   These Standard Terms and Conditions are binding on the heirs, successors
      and assigns of the Participant and WMECO. The Letter of Agreement shall
      not be assigned by either party without prior written consent of the
      other. The Participant agrees to include the Letter of Agreement in all
      leases, sales contracts, and other similar documents relating to the use
      and ownership of the facilities for which Energy Efficiency Services have
      been provided by WMECO.

18.   These Standard Terms and Conditions are applicable only to the facilities
      described in the Letter of Agreement and not to any additions to the
      Participant's facility that may be serviced by WMECO in the future.

Smith & Wesson Induction Furnaces
WM-97-S-645 Revision 1  July 6, 1998                                 Page 7 of 7
<PAGE>   8
                                  Exhibit A
                      Smith & Wesson Induction Furnaces
                           PROJECT NO.: WM-98-S-645
                                 July 6, 1998

MEASURE 1 OF 3 (MACHINE A): Install a 300 kW, 10 kHz electric induction furnace
and associated cooling system as specified by furnace manufacturer. Specific
details are noted in Energy & Resource Solutions' July 1998 Custom Services
Report.

BASELINE: 225 kW electric resistance, slot-type furnace as defined in Energy
& Resource Solutions' July 1998 Custom Services Report

<TABLE>
<S>                                                   <C>
            Unit Incentive                            $141,454.00
            Quantity to be installed                  1

            TOTAL INCENTIVE FOR THIS MEASURE          $141,454.00

            Estimated Annual Energy Savings           360,018 kWh
            Estimated Lifetime Energy Savings         7,200,360 kWh
</TABLE>

COMMISSIONING SERVICE: The Participant or the Participant's design professional
shall signify that they have satisfied themselves that the condensing unit is
performing as intended for the following areas of interest:

1.    Verification that the design professional's written documentation on
      how the system is intended to operate has been provided.
2.    Verification of correct system installation and correct direction of
      rotation. The system shall be defined as per Appendix C of Energy Resource
      & Solutions' July 1998 Custom Services Report.
3.    Verification that all sensors and control devices are field calibrated
      and the input and output signals are documented.
4.    Verification that this control scheme automatically follows the
      intended operation and function as designed.
5.    Verification that operation and maintenance manuals have been provided.
6.    Verification that the Participant's representative and/or equipment
      operator has been instructed in the proper operation and maintenance of
      the equipment.

Commissioning has been accepted by:

----------------------------------------------        -------------------------
Participant's Signature (at time of inspection)       Date
<PAGE>   9
                                  Exhibit A
                      Smith & Wesson Induction Furnaces
                           PROJECT NO.: WM-98-S-645
                                 July 6, 1998

MEASURE 2 OF 3 (MACHINE B): Install a 300 kW, 10 kHz electric induction furnace
and associated cooling system as specified by furnace manufacturer. Specific
details are noted in Energy & Resource Solutions' July 1998 Custom Services
Report.

BASELINE: 225 kW electric resistance, slot-type furnace as defined in Energy
& Resource Solutions' July 1998 Custom Services Report

<TABLE>
<S>                                                   <C>
      Unit Incentive                                  $141,454.00
      Quantity to be installed                        1

      TOTAL INCENTIVE FOR THIS MEASURE                $141,454.00

      Estimated Annual Energy Savings                 323,644 kWh
      Estimated Lifetime Energy Savings               6,472,880 kWh
</TABLE>

COMMISSIONING SERVICE: The Participant or the Participant's design professional
shall signify that they have satisfied themselves that the condensing unit is
performing as intended for the following areas of interest:

1.    Verification that the design professional's written documentation on
      how the system is intended to operate has been provided.
2.    Verification of correct system installation and correct direction of
      rotation. The system shall be defined as per Appendix C of Energy Resource
      & Solutions' July 1998 Custom Services Report.
3.    Verification that all sensors and control devices are field calibrated
      and the input and output signals are documented.
4.    Verification that this control scheme automatically follows the
      intended operation and function as designed.
5.    Verification that operation and maintenance manuals have been provided.
6.    Verification that the Participant's representative and/or equipment
      operator has been instructed in the proper operation and maintenance of
      the equipment.

Commissioning has been accepted by:

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

Participant's Signature (at time of inspection)             Date
<PAGE>   10
                                  Exhibit A
                      Smith & Wesson Induction Furnaces
                           PROJECT NO.: WM-98-S-645
                                 July 6, 1998

MEASURE 3 OF 3 (MACHINE C): Install a 300 kW, 10 kHz electric induction furnace
and associated cooling system as specified by furnace manufacturer. Specific
details are noted in Energy & Resource Solutions' July 1998 Custom Services
Report.

BASELINE: 225 kW electric resistance, slot-type furnace as defined in Energy
& Resource Solutions' July 1998 Custom Services Report

<TABLE>
<S>                                                   <C>
            Unit Incentive                            $141,454.00
            Quantity to be installed                  1

            TOTAL INCENTIVE FOR THIS MEASURE          $141,454.00

            Estimated Annual Energy Savings           447,961 kWh
            Estimated Lifetime Energy Savings         8,959,220 kWh
</TABLE>

COMMISSIONING SERVICE: The Participant or the Participant's design professional
shall signify that they have satisfied themselves that the condensing unit is
performing as intended for the following areas of interest:

1.    Verification that the design professional's written documentation on
      how the system is intended to operate has been provided.
2.    Verification of correct system installation and correct direction of
      rotation. The system shall be defined as per Appendix C of Energy Resource
      & Solutions' July 1998 Custom Services Report.
3.    Verification that all sensors and control devices are field calibrated
      and the input and output signals are documented.
4.    Verification that this control scheme automatically follows the
      intended operation and function as designed.
5.    Verification that operation and maintenance manuals have been provided.
6.    Verification that the Participant's representative and/or equipment
      operator has been instructed in the proper operation and maintenance of
      the equipment.

Commissioning has been accepted by:

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

Participant's Signature (at time of inspection)       Date<PAGE>   1
                                                                   EXHIBIT 10.13

   [LOGO] WESTERN MASSACHUSETTS                    174 Brush Hill Avenue, W.
          ELECTRIC                                 Springfield, MA 01090
                                                   Western Massachusetts
                                                   Electric Company
                                                   P.O. Box 2010
                                                   West Springfield, MA
                                                   0l090-2010
                                                   (413) 785-5871
                                                   Fax (413) 787-9352

                                                   The Northeast Utilities
                                                   System

    December 18, 2000

    Mr. Mauro DeMaio
    Senior Plant Engineer
    Smith & Wesson, Inc.
    P. O. Box 2208
    Springfield, MA 01102-2208

    Dear Mr. DeMaio:

    Reference:  Energy Efficiency Services Project No. WM-00-R-001
                Smith & Wesson, Inc. - HVAC Conversion

    To encourage electric energy efficiency, Western Massachusetts Electric
    Company (hereinafter, "WMECO") is pleased to offer Smith & Wesson, Inc.
    (hereinafter, the "Participant") Energy Efficiency Services in connection
    with the Participant's 1,000,000 square foot facility located at 2100
    Roosevelt Avenue, Springfield, Massachusetts, subject to the following terms
    and conditions:

    1.  The Energy Efficiency Services Standard Terms and Conditions and Exhibit
        A are attached and are considered part of this Agreement.

    2.  All Energy Efficiency Measures ("EEMs" or "measures") must be installed
        by the participant and accepted by both the Participant and WMECO within
        one (1) year of the Participant's execution of this Agreement.

    3. The Participant shall provide invoices for all measures installed as
       described in Exhibit A of this Agreement.

    4. WMECO agrees to pay incentives for all EEMs that comply with the Standard
       Terms and Conditions and Exhibit A up to the amounts specified for the
       individual EEMs totaling approximately $765,000.00 if all of the EEMs are
       installed. Payment will be made to Smith & Wesson, Inc. as indicated on
       the attached Form W-9, "Request for Taxpayer Identification Number and
       Certification," attention Mauro DeMaio, following inspection/measure
       verification.

   5.  The listing of a specific manufacturer in this Agreement does not
       represent an endorsement of a specific product by WMECO. Listed
       manufacturers are those
<PAGE>   2
       proposed by the Participant in their application. The Participant may
       substitute an equivalent product, which will produce equal or greater
       energy savings than the product originally proposed in this Agreement,
       with the prior approval of WMECO.

   6.  The Participant is not obligated to install any of the measures referred
       to in this Agreement, and, at any time, may decide to forego the listed
       incentive payments, and to forfeit all or part of the reimbursement of
       the Participant's cost for the energy analysis report.

   7.  This Agreement shall be signed before any measures are installed. No
       payment shall be made for EEMs not listed in Exhibit A, or for measures
       installed before this Agreement is signed, unless a prior agreement was
       established with WMECO.

   8.  The Participant may propose changes to the scope of this Agreement by
       giving written notice to WMECO. No change by the Participant shall be
       recognized without written approval of WMECO. This Agreement may not be
       modified or amended except in writing signed by both parties.

   9.  This Agreement shall be administered and interpreted under the laws of
       the Commonwealth of Massachusetts. If any part is found to be in conflict
       with applicable laws, such part shall be inoperative, null and void
       insofar as it is in conflict with said laws, but the remainder of the
       terms and conditions shall continue in full force and effect.

If the Participant agrees to the terms of this Agreement, please sign all three
(3) copies and forward all three (3) to the bidder, Advanced Research &
Technology, 3 Braintree Court, Suffield, Connecticut 06078. If the bidder agrees
to the terms of this Agreement, please sign all three (3) copies and return all
copies to me at the address indicated on page 1, for countersignature. Copies of
the executed Agreement will be returned for your records. This Agreement shall
be valid only if accepted by Participant, accepted by the owner of the facility,
accepted by the bidder and countersigned by WMECO within thirty (30) days from
the date of this letter of Agreement.

Sincerely,

/s/ Ron Johnston
Ron Johnston
Associate
Conservation & Load Management

c:     E.F. Murphy
       J. A. Burke

Smith & Wesson, Inc. - HVAC                                        WM-00-R-001
December 18, 2000                                                  Page 2 of 3
<PAGE>   3
Accepted By: Smith & Wesson, Inc.        By: Advanced Research & Technology

  /s/ Mauro DeMaio                         /s/ Alexander L. Baird
-----------------------------------      -------------------------------------
Signature of Participant                 Signature of Bidder

  Mauro DeMaio                             Alexander L. Baird
-----------------------------------      -------------------------------------
Name (Print)                             Name (Print)

  Facilities Manager                       President
-----------------------------------      -------------------------------------
Title of Participant                     Title of Bidder

  /s/ 12/21/00                             /s/ 12/21/2000
-----------------------------------      -------------------------------------
Date                                     Date

-----------------------------------
Estimated Date of Installation of
Measures

Does the Participant own the facility described herein? YES

Accepted By:             Western Massachusetts Electric Company

  /s/ Kerry J. Kuhlman
-------------------------------------
Kerry J. Kuhlman
President & Chief Operating Officer

12/21/00
-------------------------------------
Date

Attachments to this agreement:

1.  Energy Efficiency Services Standard Terms and Conditions
2.  Form W-9, "Request for Taxpayer Identification Number and Certification"
    IMPORTANT This is to be filled out at the time this agreement is signed
    ----------
3.  Exhibit A (Total number of pages: 1)

Smith & Wesson, Inc. - HVAC                                        WM-00-R-001
December 18, 2000                                                  Page 3 of 3

<PAGE>   4
                     Western Massachusetts Electric Company

                           Energy Efficiency Services

                          STANDARD TERMS AND CONDITIONS

  1.  The Participant shall be responsible for the design and installation of
      the Energy Efficiency Measures (EEMs) contained in WMECO's Exhibit A of
      the Letter of Agreement.

  2.  The Participant shall obtain all necessary permits and comply with all
      applicable laws, ordinances, building codes, and regulations of all
      appropriate governing authorities. Moreover, the Participant shall be
      responsible for any infraction or violation thereof, and any expense or
      damage resulting therefrom.

  3.  The party receiving incentives shall be responsible for any tax liability
      associated with incentive payments: WMECO will issue a Form 1099 to all
      Participants who receive more than $600 of incentives per year.

  4.  To be eligible for an incentive payment, the project must be inspected and
      verified to be installed and operating in accordance with the approved
      energy analysis report and/or Exhibit A, by both WMECO and the
      Participant. The Participant shall allow WMECO reasonable access to the
      facility to conduct such inspections and shall supply WMECO with copies of
      any documents necessary for it to verify that the project complies with
      the Letter of Agreement requirements.

  5.  WMECO will make no adjustments to the per unit incentives, even if the
      actual incremental cost varies from what was estimated in the approved
      energy analysis report and/or Exhibit A; however, the total amount of the
      incentive payment may be adjusted for the actual number of units
      installed, as long as a per unit incentive is listed and allowed.

  6.  Only Participants who are "full-distribution-service" customers are
      eligible for full incentives. A full-distribution-service customer is one
      that received all of the electricity needed for the facility described in
      the Letter of Agreement via WMECO's distribution equipment and employs
      standby self-generation at that facility only during interruption of
      WMECO's distribution services.

  7.  If the Participant's facility is not and/or will not be a
      full-distribution-service customer of WMECO at the time incentives are
      paid, the incentive will be prorated by multiplying the full incentive by
      the percentage of the facility's total electrical needs that is delivered
      via WMECO's distribution equipment.

  8.  If, within three (3) years after the last incentive payment is made, the
      Participant either becomes a non full-distribution-service customer, or
      increases the use of electricity from self-generation equipment (at times
      when there is no interruption of WMECO's
<PAGE>   5
      distribution services), the Participant must repay WMECO a prorated
      portion of the incentive.

  9.  In the event that the Participant has any outstanding balances due and
      owing to WMECO or any of its corporate affiliates, any incentive payment
      may be withheld and used to set off such outstanding debt(s) regardless of
      to whom the incentive payment would have been made.

  10. Equipment for which WMECO has provided incentives is expected to remain in
      use and in its original location for at least three (3) years, beginning
      when the final incentive payment is made for that project. Otherwise,
      WMECO reserves the right to demand a refund of all incentive sums paid for
      such equipment.

  11. WMECO does not guarantee that the Participant's actual savings will occur
      at the level projected in the energy analysis report. Factors that are
      impossible to predict, such as facility expansion, cutbacks, or weather
      changes, all may impact the Participant's future electric energy use.

  12. WMECO reserves the right to perform, at its own expense, and within two
      (2) years of project completion, a confidential project evaluation, under
      actual operating conditions, to help determine the actual energy savings.
      The Participant shall provide information as necessary to facilitate this
      evaluation.

  13. WMECO may, by written notice, terminate the Letter of Agreement for
      convenience, in whole or in part. In this event, WMECO shall pay the unit
      or pro rata price for the performed and accepted portion of the project,
      and a reasonable amount, not otherwise recoverable from other sources, for
      the unperformed or unaccepted portion of the project, provided that the
      total compensation does not exceed the total amount in the Letter of
      Agreement. No allowance will be made for anticipated profits. WMECO shall
      not be liable for any consequential or incidental damages for termination
      under this Article.

  14. WMECO may, by written notice, terminate the Letter of Agreement for the
      Participant's refusal or failure to comply with its provisions, in whole
      or in part.

  15. If the Participant requests additional time to complete the EEMs as
      defined in the Letter of Agreement, WMECO may grant an extension, in
      accordance with the Energy Efficiency Services Standard Terms and
      Conditions then in effect.

  16. The Participant shall hold harmless WMECO, its directors, officers,
      employees, agents, affiliated companies, and representatives, against and
      from any and all loss, claims, actions, or suits, including cost and
      reasonable attorneys' fees, arising from the Participant's participation
      in WMECO's Energy Efficiency Services.

  17. These Standard Terms and Conditions are binding on the heirs, successors
      and assigns of the Participant and WMECO. The Letter of Agreement shall
      not be assigned by either party without prior written consent of the
      other. The Participant agrees to include the

WMECO Standard Terms & Conditions                                  Page 2 of 3
<PAGE>   6
      Letter of Agreement in all leases, sales contracts, and other similar
      documents relating to the use and ownership of the facilities for which
      Energy Efficiency Services have been provided by WMECO.

  18. These Standard Terms and Conditions are applicable only to the facilities
      described in the Letter of Agreement and not to any additions to the
      Participant's facility that may be serviced by WMECO in the future.

WMECO Standard Terms & Conditions                                  Page 3 of 3
<PAGE>   7
                                  Exhibit A
                         Advanced Research Technology
                                     and
                             Smith & Wesson, Inc.
                            Springfield, MA 01102
                         Project Number: WM-00-R-001
                              December 18, 2000

I.     GENERAL:

A.    The Owner will submit documents for review as required. WMECO will review
      construction documents to facilitate the verification of conformance with
      the energy efficiency improvement measures detailed in Item II, below.

B.    The listing of a specific manufacturer in this Contract does not represent
      an endorsement of a specific product by WMECO. Listed manufacturers are
      those proposed by the Owner in their application. The Owner may substitute
      an equivalent product, which will produce equal or greater energy savings
      than the product originally proposed, with the approval of WMECO.

II.   ENERGY EFFICIENCY IMPROVEMENT MEASURES

MEASURE 1 OF 1: Installation of energy efficiency measures as reviewed by The
Nicholas Group. Energy efficiency measures shall include converting 520
connected tons of rooftop DX constant volume cooling to a VAV system with
chilled water coils, adding differential enthalpy control to the VAV system, an
energy efficient water cooled chiller, primary secondary chilled water pumping,
and heat recovery using cooling tower water as described in the proposal
submitted on September 14, 2000 by Advanced Research Technology for Smith &
Wesson Corporation in response to the WMECO request for energy efficiency
proposals.

<TABLE>
<S>                                                   <C>
       Estimated Installed Cost:                        $1,041,790
     MAXIMUM INCENTIVE THIS MEASURE                      $765,000

    Estimated Annual Energy Savings:                  1,254,430 kWh
   Estimated Lifetime Energy Savings:                 22,932,585 kWh
</TABLE>

 Measure Verification: Inspection of completed installation.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00028-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00028-of-00352.parquet"}]]