Document:

EX-10.1

EXHIBIT 10.1

DURA AUTOMOTIVE SYSTEMS, INC.

SECTION 16 OFFICER/SENIOR EXECUTIVE EMPLOYMENT TERM SHEET AGREEMENT

Dura Automotive Systems, Inc. (“Company”) hereby employs the individual(s) listed on the attached
Exhibit A (“Executive”) in the job positions listed in the same Exhibit, subject to the terms set
forth in this document, as well as all other documents referenced herein.

	 	1.	 	Job Position: Executive’s employment with Company shall commence on the date
reflected next to his/her name in the attached Exhibit A. Executive shall be employed and
shall work in a full-time capacity in the job position reflected next to his/her name in
the attached Exhibit A. Except for the position of President & Chief Executive Officer,
all other Executives shall report to the Company’s President & Chief Executive Officer; the
Company’s President & Chief Executive Officer shall report directly to the Board of
Directors. Executive shall be based out of Company’s global headquarters office, currently
located in Rochester Hills, MI, unless otherwise agreed. Executive’s job duties shall be
similar to those of similarly-situated executives in public companies, including but not
limited to the duties of his/her immediate Dura predecessor, and as otherwise directed from
time to time by the Company’s President & Chief Executive Officer and/or Board of
Directors. Executive shall devote all of his/her time, attention, knowledge, and skill
solely and exclusively to the business and interests of the Company, and the Company shall
be entitled to all benefits and profits arising from or incident to any and all work,
services, and advice of Executive; provided, however, that Executive shall not be precluded
from devoting personal time to personal investments or from serving in outside director
and/or advisory positions, as long as such positions do not conflict with Executive’s
ability to fully perform his/her duties for the Company and as long as such positions are
approved in writing in advance by the Company’s Board of Directors.
	 
	 	2.	 	Base Salary: Executive shall be paid a gross annual base salary of the amount
reflected next to his/her name in the attached Exhibit A, less customary and statutory
withholdings and deductions (“Base Salary”). The Base Salary shall be paid in accordance
with the Company’s normal payroll practices and cycles, and may be reviewed and adjusted
from time to time by the Company’s Board of Directors.
	 
	 	3.	 	Sign-On Bonus: At the sole discretion of the Company’s Board of Directors,
Executive may be offered a one-time lump sum sign-on bonus in the gross amount reflected
next to his/her name in the attached Exhibit A; provided, however, that this sign-on bonus
is being paid as an advance and is not earned or accrued until Executive completes the
first twelve (12) calendar months of employment without his/her employment ending for any
reason (including Executive voluntarily resigning) other than the Company terminating
him/her without Cause (as Cause is later defined in this document), and if Executive’s
employment ends prior to the conclusion of this first twelve (12) month period (other than
if the Company terminates him/her without Cause), then Executive shall be immediately
obligated to repay the full gross amount of this sign-on bonus to the Company within one
(1) month of the employment cessation, unless the Company in its sole discretion forgives
this obligation via a signed, written document. Executive agrees and permits the Company
to deduct this amount from his/her final paycheck and any additional compensation amounts
owed to Executive by the Company.
	 
	 	4.	 	Annual Performance Bonus: For each calendar year commencing on or after
January 1, 2009, Executive will be eligible to earn an annual performance-based cash bonus
(“Annual Performance Bonus”) based upon achievement of the Company’s performance plan, with
a target award potential as indicated in Exhibit A as a percent of Base Salary upon
achievement of 100% of the Company’s performance plan. The terms of the Annual Performance
Bonus shall be as set forth in the Company’s written bonus plan (attached hereto as Exhibit
B), as amended by the Company from time to time. The Annual Performance Bonus, if any,
will be paid to Executive following the end of the relevant calendar year, and no later
than March 15 immediately following the end of the calendar year in which the Annual
Performance Bonus was earned.

 

 

	 	5.	 	Flexible Perquisites: Executive shall be paid an annual flexible perquisite in
the gross amount reflected next to his/her name in the attached Exhibit A, less customary
and statutory withholdings and deductions (provided, however, that business use of the auto
and club shall be treated as direct reimbursement and thus non-taxable, unless current tax
law changes and requires the Company to treat it otherwise). This flexible perquisite
shall be paid and administered in accordance with the Company’s written flexible perquisite
plan (attached hereto as Exhibit C), as amended by the Company from time to time. This
program provides reimbursement for expenses, such as company auto, country club membership
or other memberships, financial counseling, auxiliary life insurance, and a short list of
other allowable expenses.
	 
	 	6.	 	Equity: Executive shall be eligible to participate in the Company’s Equity
Incentive Plan, subject to and in accordance with its terms.
	 
	 	7.	 	Change of Control: Executive shall be entitled to Change of Control rights and
benefits identical to those set forth in existing Change of Control agreements between the
Company and existing Section 16 officers/senior executives, and which were previously
approved and adopted by the Company’s Board of Directors upon the Company’s May 13, 2008
approved exit from bankruptcy restructuring. To the extent that the terms of such Change
of Control Agreements vary from Section 16 officer/senior executive to Section 16
officer/senior executive, then each Section 16 officer/senior executive shall be deemed to
have the best of terms between the variances.
	 
	 	8.	 	Vacation and Holidays: Executive shall accrue paid vacation/personal time and
shall be entitled to paid holidays pursuant to the Company’s vacation and holiday policy
(attached hereto as Exhibit D), as amended by the Company from time to time. Currently,
Executive shall accrue paid vacation/personal time off at the pro rata rate of fifteen (15)
days per year and shall be entitled to ten (10) paid holidays per year on the dates listed
in Exhibit D.
	 
	 	9.	 	Benefits: Executive will be entitled to participate in the Company’s customary
executive employee benefits, including but not limited to all benefits and group insurance
provided by the Company to similarly-situated executives.
	 
	 	10.	 	At-Will Employment: Executive’s employment with the Company is and shall be at
all times at-will in nature. Either Executive or the Company can end the employment
relationship at any time with or without notice, and with or without reason.
Notwithstanding the foregoing, if Executive resigns employment or if the Company terminates
Executive’s employment for any reason other than Cause (as defined herein), then Executive
and Company, respectively, shall be required to give the other a minimum of three (3)
months advance written notice.
	 
	 	11.	 	Severance: If the Company involuntarily terminates Executive’s employment for
any reason other than Cause (as defined herein), then Company shall pay Executive a
one-time severance payment in the gross amount reflected next to his/her name in the
attached Exhibit A. Except for any delay in payment required by Code Section 409A, this
severance payment shall be paid out over regular Company payroll for the length of time
that Executive would have earned the same amount as Base Salary and target Annual
Performance Bonus had his/her employment not been terminated — e.g., if the severance
amount were 100% of Base Salary, then the severance would pay out over a one (1) calendar
year period. This severance payment shall be expressly conditioned on Executive executing
and delivering a full waiver and release of all claims against the Company in a form as
attached hereto as Exhibit E, and on Executive continuing to comply with all obligations
that per their terms survive employment termination, including but not limited to the
restrictive covenants contained in Section 13 herein. For purposes of this Section 11,
Cause shall be defined as any of the following:

	 	a.	 	Executive’s death;
	 
	 	b.	 	Executive’s disability (defined as Executive’s inability to perform
his/her essential job duties for a consecutive period of 180 calendar days);

 

 

	 	c.	 	Executive commits, is indicted of, or is convicted of, or admits, plea
bargains, enters a plea of no contest or nolo contendere to, any felony of any kind
or a misdemeanor, or violates any laws, involving fraud, dishonesty or an act of
moral turpitude;
	 
	 	d.	 	Executive materially breaches this Agreement or any other agreement to
which the Executive and the Company are parties;
	 
	 	e.	 	Executive materially violates any written Company policy, regardless of
whether within or outside the scope of his/her authority;
	 
	 	f.	 	Executive commits willful or intentional misconduct, gross negligence,
or dishonest, fraudulent or unethical behavior, or other conduct involving serious
moral turpitude in the performance of his/her duties hereunder;
	 
	 	g.	 	Executive fails or refuses to materially comply (to the best of his/her
ability) with a specific direction of the Company, unless the Executive reasonably
and in good faith believes such specific direction to be unlawful (in which case
the Company’s termination of the Executive’s employment shall not be for Cause
under this provision); or
	 
	 	h.	 	Executive engages in any conduct which breaches his/her fiduciary duty
to the Company, which materially injures the integrity, character or reputation of
the Company or which impugns Executive’s own integrity, character or reputation so
as to cause Executive to be unfit to act in the capacity of an executive officer of
the Company.

	 	 	 	A termination of employment by the Company for Cause (other than death or disability)
under this Section 11 shall be effectuated by the Board giving the Executive written
notice of the termination within thirty (30) calendar days of the event constituting
Cause, or such longer period as the parties may agree, setting forth in reasonable
detail the specific conduct of the Executive that constitutes Cause, the specific
provisions of this term sheet/agreement on which the Company relies and, to the extent
such Cause is susceptible to cure, providing the Executive with a thirty (30) calendar
day cure period. If the Executive fails or is unable to remedy the condition within
such thirty (30) day cure period, then the Company may terminate the Executive’s
employment within thirty (30) calendar days following expiration of the cure period, and
if the Company fails to so terminate the Executive’s employment, then any subsequent
termination based upon the same underlying facts shall not constitute a termination for
Cause under this Section 11.
	 
	 	12.	 	D&O Insurance: While employed pursuant to this term sheet/agreement, Executive
will be covered by the Company’s D&O insurance policy in accordance with its terms,
including full hook and tail coverage for covered claims arising out of events prior to and
during his employment. In addition, the Company shall indemnify Executive pursuant to the
provisions contained in the Company’s bylaws, as amended from time to time.
	 
	 	13.	 	Restrictive Covenants: Executive will be subject to standard confidentiality
(trade secret)/non-compete/non-solicitation covenants during his employment, and regarding
confidentiality (trade secrets) forever thereafter, but regarding
non-compete/non-solicitation for a period of twelve (12) months immediately following the
end of employment with the Company (for any or no reason). Executive will agree to a
standard non-disparagement covenant as to the Company, its Board, and Section 16 Officers,
during employment and forever thereafter.
	 
	 	14.	 	Miscellaneous: This term sheet/agreement will be governed by Michigan law,
will be adjudicated exclusively within the State of Michigan, and will supersede and
replace any prior or other promises or agreements or documents between Executive and anyone
concerning the subject matter of this term sheet, including but not limited to any promises
or agreements by or with the Company or its Board of Directors; provided, however, that all
Exhibits hereto and all plans or documents referenced herein are expressly incorporated and
not superseded by this term sheet/agreement (which include but are not limited to Exhibits
A-E hereto, as well as the above-referenced Change of Control agreements). This

 

 

	 	 	 	term sheet/agreement cannot be amended, except by a written document signed by the
parties below and expressly referencing this term sheet. Executive agrees that his/her
services cannot be assigned and are personal to him/her.

	 	 	 	 	 
	ACCEPTED AND AGREED:
	 	 	 	 
	 
	 	 	 	 
	/s/ Jeffrey M. Stafeil
 

Executive

	 	October 30, 2008
	 	 
	 
	 	 	 	 
	ACCEPTED AND AGREED:
	 	 	 	 
	 
	 	 	 	 
	Dura Automotive Systems, Inc.
	 	 	 	 
	 
	 	 	 	 
	By: /s/ Theresa L. Skotak
 

Executive Vice President and

	 	November 3, 2008
	 	 
	Chief Administrative Officer
	 	 	 	 

 

 

EXHIBIT A

Amended 10/15/2008

TO

DURA AUTOMOTIVE SYSTEMS, INC.

SECTION 16 OFFICER/SENIOR EXECUTIVE EMPLOYMENT TERM SHEET AGREEMENT

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Job	 	 	 	 	 	 	 	Bonus	 	 	 	 
	Executive	 	Start Date	 	Position	 	Base Salary	 	Severance	 	Target/Max	 	Sign Bonus	 	Flex Perq.
	Jeffrey M.
Stafeil

	 	December

1, 2008
	 	EVP &

CFO
	 	$	500,000	 	 	One and
one half
base &
target
bonus
	 	100% /

150%

2009 Bonus

will be paid

at minimum
of 100%
	 	$250,000 at

hire

$250,000

March,

2009

to be paid

back if quit

within 12

mos
	 	$	22,000exv10w57xay

EXHIBIT 10.57(a)

SMITH & WESSON HOLDING CORPORATION

AND

CERTAIN AFFILIATED ENTITIES

AMENDMENT NO. 1 TO CREDIT AGREEMENT AND 

ASSIGNMENT AND ACCEPTANCE OF COLLATERAL DOCUMENTS

     This Amendment No. 1 to Credit Agreement and Assignment and Acceptance of Collateral Documents
(this “Amendment No. 1”) dated as of October 31, 2008 (the “Amendment Date”), is
among Smith & Wesson Holding Corporation, a Nevada corporation (“Holdings”), Smith & Wesson
Corp., a Delaware corporation (“S&W Corp.”), Thompson/Center Arms Company, Inc., a New
Hampshire corporation (“TCAC”), Thompson Center Holding Corporation, a Delaware corporation
(“TCHC”), Fox Ridge Outfitters, Inc., a New Hampshire corporation (“Fox Ridge”),
Bear Lake Holdings, Inc., a Delaware corporation (“Bear Lake”), K.W. Thompson Tool Company,
Inc., a New Hampshire corporation (“K.W. Thompson”), and O.L. Development, Inc., a New
Hampshire corporation (“O.L. Development”) (Holdings, S&W Corp. and TCAC are hereinafter
referred to individually as a “Borrower”, and collectively as the “Borrowers”, and
the Borrowers, TCHC, Fox Ridge, Bear Lake, K.W. Thompson are O.L. Development are hereinafter
referred to individually as a “Credit Party,” and collectively as the “Credit
Parties”), the Lenders (as defined below), and Toronto Dominion (Texas) LLC, a Delaware limited
liability company (“Toronto Dominion (Texas)”, in its capacity as administrative agent (in
such capacity, the “Administrative Agent”) for itself and the other lenders party to the
Credit Agreement (as defined below) from time to time (the “Lenders”), and TD Bank, N.A., a
national banking association (“TD Bank”), in its capacity as successor Administrative
Agent.

R E C I T A L S:

     WHEREAS, reference is made to a certain Credit Agreement dated as of November 30, 2007 by and
among the Borrowers, the Lenders and the Administrative Agent (the “Credit Agreement”)
(terms defined in the Credit Agreement and not otherwise defined herein shall have the meanings
given to such terms in the Credit Agreement); and

     WHEREAS, Toronto Dominion (Texas) desires to resign as Administrative Agent under the Credit
Agreement and the other Loan Documents; and

     WHEREAS, the Required Lenders and the Borrowers desire to appoint TD Bank as successor
Administrative Agent; and

     WHEREAS, the Borrowers and the Lenders have terminated the Acquisition Loan Commitment; and

     WHEREAS, the Borrowers are entering into a cash management agreement on the date hereof with
TD Bank, as successor Administrative Agent, and have requested certain changes to the funding and
repayment of Revolving Loans due to the cash management agreement; and

     WHEREAS, due to a scrivener’s error, the definition of “Applicable Margin” appearing in
Section 1.01 of the Credit Agreement is not accurately stated; and

     WHEREAS, the Borrowers and the Lenders desire to modify the Consolidated Leverage Ratio;

 

 

     WHEREAS, the Borrowers and the Lenders desire to modify the Credit Agreement to permit one or
more Borrowers to request, and the LC Issuer to issue, letters of credit for the account of one or
more Guarantors; and

     WHEREAS, the Borrowers and the Lenders desire to release and terminate the Copyright Security
Agreement, the Patent Security Agreement and the Trademark Security Agreement; and

     WHEREAS, the parties hereto desire to effectuate the resignation of Toronto Dominion (Texas)
as Administrative Agent and the appointment and acceptance of TD Bank as successor Administrative
Agent and to amend the Credit Agreement (a) to reflect the termination of the Acquisition Loan
Commitment, (b) to reflect the establishment of the cash management agreement and modify how
Revolving Loans are made and repaid, (c) to correct the definition of Applicable Margin, (d) to
modify the Consolidated Leverage Ratio, (d) release and terminate the Copyright Security Agreement,
the Patent Security Agreement and the Trademark Security Agreement, and (e) to permit one or more
Borrowers to request, and the LC Issuer to issue, letters of credit for the account of one or more
Guarantors, all upon the terms and conditions hereinafter set forth.

     NOW THEREFORE, for good and valuable consideration, the receipt and adequacy of which are
hereby acknowledged, the parties hereto hereby agree as follows:

     1. Recitals. The foregoing recitals are hereby incorporated by reference herein.

     2. Resignation of Toronto Dominion (Texas) as Administrative Agent; Appointment of TD Bank
as Successor Administrative Agent.

          2.1. Resignation of Toronto Dominion (Texas) as Administrative Agent. Effective upon
the satisfaction of the conditions set forth in Section 5 below and pursuant to Section 9.06 of the
Credit Agreement (and, for the avoidance of doubt, subject to the last sentence of the first
paragraph of Section 9.06), Toronto Dominion (Texas) hereby resigns as Administrative Agent under
the Credit Agreement and the other Loan Documents. Each of the Lenders, the LC Issuer and the
Borrowers hereby acknowledge and accept such resignation.

          2.2 Appointment of Successor Administrative Agent. Effective upon the satisfaction of
the conditions set forth in Section 5 below, TD Bank, as the sole Lender under the Credit
Agreement, hereby appoints TD Bank as successor Administrative Agent pursuant to Section 9.06 of
the Credit Agreement, and TD Bank hereby accepts such appointment. The Borrowers and the LC Issuer
hereby consent to such appointment for all purposes of the Credit Agreement and the other Loan
Documents, and hereby waive prior written notice of the resignation of Toronto Dominion (Texas) as
Administrative Agent. Effective upon the satisfaction of the conditions set forth in Section 5
below, the term “Administrative Agent” shall mean TD Bank in its capacity as Administrative Agent
under the Credit Agreement, and TD Bank hereby succeeds to, becomes vested with and accepts all
rights, powers, privileges and duties of the resigning Administrative Agent under the Credit
Agreement. Effective upon the satisfaction of the conditions set forth in Section 5 below, Toronto
Dominion (Texas) is hereby discharged from its duties and obligations as Administrative Agent under
the Credit Agreement and the other Loan Documents, except as provided herein.

          2.3 Assignment and Acceptance of Collateral Documents. Effective upon the
satisfaction of the conditions set forth in Section 5 below, Toronto Dominion (Texas), in its
capacity as resigning Administrative Agent, hereby assigns and transfers irrevocably to TD Bank, in
its capacity as successor Administrative Agent and its successors and assigns, all the estates,
properties, rights, powers

 - 2 - 

 

and duties of Toronto Dominion (Texas) in, to and under the Collateral
Documents. Effective upon the
satisfaction of the conditions set forth in Section 5 below, TD Bank hereby accepts such
assignment and accepts all the estates, properties, rights, powers and duties of Toronto Dominion
(Texas) under and pursuant to the Collateral Documents.

          2.4 Further Assurances. Toronto Dominion (Texas) will, at the expense of the Credit
Parties and at any time and from time to time, promptly execute and deliver all further instruments
and documents (including, without limitation, assignments of all collateral documents heretofore
executed as security for the Credit Agreement and the Notes and which name Toronto Dominion
(Texas) as secured party, assignee, mortgagee or the like), and take all further action, that may
be necessary or desirable, or that Toronto Dominion (Texas) may reasonably request, in order to
transfer any of the estates, properties, rights, powers and duties granted or purported to be
granted hereby or to enable TD Bank to exercise and enforce its rights and remedies under the
Collateral Documents.

     3. Amendments to Credit Agreement. The parties hereto hereby agree that, effective on
the Effective Date, the Credit Agreement is hereby amended as follows:

          3.1 The following defined terms are hereby deleted in their entirety from Section 1.01 of the
Credit Agreement: “Acquisition Availability”, “Acquisition Borrowing(s)”, “Acquisition
Certificate”, “Acquisition Line Notes”, “Acquisition Loan”, “Acquisition Loan Availability Period”,
“Acquisition Loan Commitment”, “Acquisition Loan Maturity Date”, “Applicable Acquisition Loan
Percentage”, “Copyright Security Agreement”, “Patent Security Agreement”, “Trademark Security
Agreement” and “Unused Acquisition Loan Fee”, and all references to Acquisition Availability,
Acquisition Borrowing(s), Acquisition Certificate, Acquisition Line Notes, Acquisition Loan,
Acquisition Loan Availability Period, Acquisition Loan Commitment, Acquisition Loan Maturity Date,
Applicable Acquisition Loan Percentage, Permitted Acquisition, Copyright Security Agreement, Patent
Security Agreement and Trademark Security Agreement and Unused Acquisition Loan Fee are hereby
deleted from the Credit Agreement; and Exhibit A (Acquisition Certificate) and Exhibit B
(Acquisition Line Note) are hereby deleted from the Credit Agreement.

          3.2 The definition of “Applicable Margin” appearing in Section 1.01 of the Credit Agreement is
hereby deleted in its entirety and the following is hereby inserted in its stead:

          “‘Applicable Margin’ means:

          (a) (i) during the period commencing on the date hereof and ending on
the date of delivery of the Compliance Certificate for the fiscal quarter
ending January 31, 2008, the Applicable Margin for all Loans and unused line
fees shall be set at Level 2 on the grid below, and (ii) at all times during
each Interest Period thereafter the Applicable Margin as of any date of
determination shall be determined based upon the Consolidated Leverage Ratio
as of the Determination Date immediately preceding such date as indicated in
the following table:

 - 3 - 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Applicable	 	Applicable	 	 
	 	 	 	 	Margin for	 	Margin for	 	 
	 	 	 	 	Revolving	 	Revolving	 	 
	 	 	 	 	Loan (per	 	Loan (per	 	 
	 	 	 	 	annum	 	annum	 	 
	 	 	Consolidated	 	rates) for	 	rates) for	 	Unused
	 	 	Leverage	 	Base Rate	 	LIBOR	 	Revolver
	 	 	Ratio	 	Loans	 	Loans	 	Fee
	Level 1

	 	Greater than
3.00:1.00
	 	 	0.50	%	 	 	2.50	%	 	 	0.75	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Level 2

	 	Greater than
2.50:1.00 but less
than or equal to
3.00:1.00
	 	 	0.00	%	 	 	2.00	%	 	 	0.50	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Level 3

	 	Greater than
2.00:1.00 but less
than or equal to
2.50:1.00
	 	 	0.00	%	 	 	1.75	%	 	 	0.50	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Level 4

	 	Greater than
1.50:1.00 but less
than or equal to
2.00:1.00
	 	 	0.00	%	 	 	1.50	%	 	 	0.25	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Level 5

	 	Equal to or less
than 1.50:1.00
	 	 	0.00	%	 	 	1.25	%	 	 	0.25	%

If any Compliance Certificate has not been delivered to the Administrative
Agent within the time periods specified in Section 6.01(c), then until the
Determination Date, the highest rate set forth above shall apply.”

     3.3 The defined term “Letter of Credit Documents” is hereby deleted in its entirety
from Section 1.01 of the Credit Agreement and the following is hereby substituted in its
stead:

“‘Letter of Credit Documents’ means collectively, any letter of
credit application and other related documents executed by any Borrower in
form satisfactory to the LC Issuer in connection with each Letter of Credit,
including, without limitation, the Existing Letters of Credit, and any
letter of credit application and other related documents executed by any
Borrower and a Guarantor in form satisfactory to the LC Issuer in connection
with any Letter of Credit issued for the account of such Guarantor.”

     3.4 The defined term “Obligations” is hereby deleted in its entirety from Section
1.01 of the Credit Agreement and the following is hereby substituted in its stead:

“‘Obligations’ means all unpaid principal of and accrued and unpaid
interest on the Loans, all LC Exposure, all Cash Management Obligations, all
Swap

 - 4 - 

 

Obligations, all Foreign Exchange Obligations, all accrued and unpaid fees
and all expenses, reimbursements, indemnities and other obligations of the
Loan Parties arising under the Loan Documents to the Administrative Agent,
the Lenders, the LC Issuer, any indemnified party, any holder of Cash
Management Obligations, and any holder of Swap Obligations, including,
without limitation, any Foreign Exchange Obligations.”

     3.5 The defined term “TD Banknorth, N.A.” is hereby deleted in its entirety from Section 1.01
of the Credit Agreement and the following is hereby substituted in its stead:

“‘TD Bank’ means TD Bank, N.A. (as successor-in-interest to
TD Banknorth, N.A.), a national banking association and a Lender.”

All references to “TD Banknorth, N.A.” in the Credit Agreement are hereby deemed references to “TD
Bank”.

     3.6 The defined term “Permitted Acquisition” is hereby deleted in its entirety from Section
1.01 of the Credit Agreement and the following is hereby substituted in its stead:

“‘Permitted Acquisition’ means any Acquisition by Holdings or any
Subsidiary in a transaction that satisfies each of the following
requirements:

     (a) intentionally omitted;

     (b) intentionally omitted;

     (c) receipt by the Administrative Agent of an officer’s certificate of
the Borrower Representative certifying that both before and after giving
effect to such Acquisition, each of the representations and warranties in
the Loan Documents is true and correct (except (i) any such representation
or warranty which relates to a specified prior date and (ii) to the extent
the Administrative Agent has been notified in writing by the Borrower
Representative that any representation or warranty is not correct and the
Administrative Agent has explicitly waived in writing compliance with such
representation or warranty) and no Default or Event of Default exists, will
exist, or would result therefrom;

     (d) as soon as available, but not less than twenty (20) days prior to
the closing date of such Acquisition, the Borrower Representative shall have
provided the Administrative Agent (i) notice of such Acquisition, specifying
the purchase price and closing date, together with a general description of
the acquisition target’s business, (ii) copies of all business and financial
information reasonably requested by the Administrative Agent, from time to
time, including financial statements of the Companies on a Pro Forma Basis
reflecting the financial impact of the Acquisition, (iii) drafts of any
purchase and sale agreement, together with any available schedules and
exhibits, (iv) if available, at least three (3) years of audited financial
statements with respect to the acquisition target (or, if the acquisition
target is a start-up company, any available financial statements of such
acquisition target plus stand-alone projections for such acquisition
target), and (v) intentionally omitted;

     (e) intentionally omitted;

 - 5 - 

 

     (f) if the Accounts and Inventory acquired in connection with such
Acquisition are proposed to be included in the determination of the
Borrowing Base, the Administrative Agent, at its option, shall have
conducted an audit and field examination of such Accounts and Inventory to
its satisfaction;

     (g) intentionally omitted;

     (h) if such Acquisition is an acquisition of the Equity Interests of a
Person, the Acquisition is structured so that the acquired Person shall
become a wholly-owned Subsidiary of Holdings, and may become a Loan Party
pursuant to the terms of this Agreement if such Subsidiary is a Domestic
Subsidiary of a Borrower;

     (i) if such Acquisition is an acquisition of assets, the Acquisition is
structured so that a Borrower or a Subsidiary shall acquire such assets;

     (j) if such Acquisition is an acquisition of Equity Interests, such
Acquisition will not result in any violation of Regulations T, U or X;

     (k) if such Acquisition involves a regulated business, such as firearm
manufacturing, the Borrower Representative has provided evidence reasonably
satisfactory to the Administrative Agent that acquisition target is
compliant with all applicable regulations and has all licenses, permits and
governmental approvals necessary to operate its business and that the
acquiring Loan Party has obtained the necessary consents to the transfer of
such licenses, permits and governmental approvals;

     (l) no Loan Party shall, as a result of or in connection with any such
Acquisition, assume or incur any direct or contingent liabilities (whether
relating to environmental, tax, litigation, or other matters) that could
have a Material Adverse Effect;

     (m) in connection with an Acquisition of the Equity Interests of any
Person, all Liens on property of such Person shall be terminated unless the
Administrative Agent in its Permitted Discretion consents otherwise, and in
connection with an Acquisition of the assets of any Person, all Liens on
such assets shall be terminated;

     (n) the Financial Officer of Holdings shall certify (and provide the
Administrative Agent with a pro forma calculation in form and substance
reasonably satisfactory to the Administrative Agent) to the Administrative
Agent that, immediately after giving effect to the completion of such
Acquisition: (i) on a consolidated basis, the Companies will be in
compliance with all financial covenants set forth in Section 7.12 hereof,
and (ii) intentionally omitted; and

     (o) intentionally omitted.”

     3.7 The following definitions are hereby inserted in Section 1.01 of the Credit Agreement in
appropriate alphabetical order therein:

 - 6 - 

 

“‘Cash Management Agreements’ means, collectively, one or more
agreements entered into from time to time by TD Bank with any Borrower, the
Borrower Representative and/or any Guarantor relating to cash management
services regarding one or more of the Deposit Accounts, as such agreement(s)
may be amended, restated or modified from time to time.”

“‘Master Account’ means that certain deposit account (account number
8245726051) of the Borrower Representative maintained with TD Bank and
described in and subject to the Cash Management Agreements, and such other
account(s) as the Borrowers (or the Borrower Representative) and TD Bank
may, from time to time, designate as master account(s).”

“‘Deposit Account Agreements’ means, collectively, one or more
agreements entered into from time to time by TD Bank with any Borrower, the
Borrower Representative and/or any Guarantor relating to the opening and/or
establishment of one or more Deposit Accounts, as such agreement(s) may be
amended, restated or modified from time to time.”

“‘Deposit Accounts’ means, collectively, those certain deposit
accounts of any Borrower, the Borrower Representative and/or any Guarantor
maintained with TD Bank from time to time pursuant to the Deposit Account
Agreements and described in and subject to the Cash Management Agreements.”

     3.8 The definition of “Funding Office” appearing in Section 1.01 of the Credit Agreement is
hereby deleted in its entirety and the following is hereby substituted in its stead:

“‘Funding Office’ means the office of the Administrative Agent located at
1441 Main Street, Springfield, Massachusetts 01103, or such other office as
Administrative Agent may specify from time to time as its funding office by
written notice to the Borrower Representative.”

     3.9 Section 2.06(b) (Mandatory Repayments of the Revolving Loans) of the Credit Agreement is
hereby deleted in its entirety and the following is hereby substituted in its stead:

“(b) Mandatory Repayments of Revolving Loans.

     (i) The Borrowers hereby agree to promptly deposit, or cause to
be promptly deposited, into the Deposit Accounts all cash, checks,
electronic funds transfers and all other funds and payments received
by the Borrowers or any other Loan Party. All funds from time to
time deposited into the Deposit Accounts shall be subject to full
cash dominion by the Administrative Agent and shall be deemed
received by the Administrative Agent in accordance with Section
2.20(a) of the Credit Agreement. Subject to the terms and
provisions of the Deposit Account Agreements and the Cash Management
Agreements, the Administrative Agent shall determine the collected
funds in the Master Account on each Business Day. Such collected
funds shall be used to pay the fees and charges owed to TD Bank
pursuant to the Deposit Account Agreements and the Cash Management
Agreements, and then shall be used to pay checks and all other forms
of debit activity that are properly drawn on the Deposit Account(s)
and presented for payment. Subject to

 - 7 - 

 

Section 3.03 of the Credit Agreement, to the extent there
remain excess collected funds in the Master Account after the
payment of the fees, charges and checks as described in the previous
sentence, all such excess collected funds (the “Excess Collected
Funds”) shall be automatically applied, on each Business Day, to
repay the Revolving Loans to the extent then outstanding. Funds
applied to repay Revolving Loans in accordance with the previous
sentence shall be applied first to repay Revolving Loans that are
Base Rate Loans and, then, to repay Revolving Loans that are LIBOR
Loans. After the application of the collected funds in accordance
with this Section 2.06(b)(i), so long as no default or Event of
Default has occurred and is continuing, any Excess Collected Funds
shall remain on deposit in the Master Account, or at the written
request of the Borrower Representative, all or a portion of such
remaining balance shall be deposited into one or more securities
and/or deposit accounts of the Borrowers maintained with the
Administrative Agent.

     (ii) Notwithstanding Section 2.06(b)(i), if at any time the
Revolving Exposure exceeds the lesser of (A) the Revolving
Commitment or (B) the Borrowing Base, the Borrowers shall repay
immediately the Revolving Loans and LC Exposure in an aggregate
amount equal to such excess. Such repayment shall be applied
first, to repay the Revolving Loans until the unpaid
principal balance thereof is $0.00, and second, to cash
collateralize the LC Exposure by depositing any excess in a LC
Collateral Account. In addition, any amounts due under Section
2.20(a) as a result of such repayment shall also be paid.”

     3.10 Section 2.07 of the Credit Agreement is hereby deleted in its entirety and the following
is hereby substituted in its stead: “Section 2.07. Intentionally deleted.”

     3.11 Section 2.08 of the Credit Agreement is hereby deleted in its entirety and the following
are hereby substituted in its stead: “Section 2.08. Intentionally deleted.”

     3.12 Section 2.09(a) of Credit Agreement is hereby deleted in its entirety and the following
are hereby substituted in its stead:

     “(a) General. Subject to the terms and conditions set forth herein,
any Borrower may request the issuance of Letters of Credit for its own account or
the account of any Guarantor, in a form reasonably acceptable to the LC Issuer at
any time and from time to time during the Letter of Credit Availability Period
denominated in Dollars or in one or more Alternative Currencies. In the event of
any inconsistency between the terms and conditions of this Agreement and the terms
and conditions of any Letter of Credit Document, the terms and conditions of this
Agreement shall control. The Existing Letters of Credit shall be deemed Letters of
Credit issued hereunder, and subject to the terms of this Agreement.”

     3.13 The following is hereby inserted as a new paragraph at the end of Section 2.11 (Procedure
for Borrowing) of the Credit Agreement:

“To the extent there are insufficient collected funds in the Master Account
as

 - 8 - 

 

determined on any Business Day to pay the fees and charges and other account
activity described in the fourth sentence of Section 2.06(b) for such
Business Day, Borrowers shall be deemed to have automatically requested the
borrowing of a Revolving Loan in the amount of such insufficiency (the
“Insufficiency”). So long as no default or Event of Default has
occurred and is continuing, and subject to the terms and conditions of this
Agreement, a Revolving Loan will be made to the Master Account on such
Business Day in the amount of the Insufficiency. Subject to Section 2.13 of
this Agreement, each such Revolving Loan shall be a Base Rate Loan.”

     3.14 Section 2.12(a) of the Credit Agreement is hereby deleted in its entirety and the
following is hereby inserted in its stead:

     “(a) Following receipt of a Borrowing Request or upon the occurrence of
an Insufficiency in the Master Account as described in Section 2.11 or a
Conversion/Continuation Notice, subject to the terms and provisions of this
Agreement, the Administrative Agent shall promptly notify each Lender of the
amount of its Applicable Revolving Loan Percentage, under the applicable
Loan or the applicable Loans, and if no timely notice of a conversion or
continuation is provided by the Borrower Representative, the Administrative
Agent shall notify each Lender of the details of any automatic conversion to
Base Rate Loans described in Section 2.11. In the case of Revolving
Borrowing, (i) each appropriate Lender shall make the amount of its Loan
available to the Administrative Agent in Dollars in immediately available
funds at the Administrative Agent’s Office not later than 2:00 p.m. on the
Business Day specified in the applicable Borrowing Request, check or
Conversion/Continuation Notice and (ii) upon satisfaction or waiver of the
applicable conditions set forth in Section 4.02 (and, if such Borrowing is
the initial Borrowing, Section 4.01), the Administrative Agent shall make
all funds so received available to the Borrower Representative in like funds
as received by the Administrative Agent either by (A) crediting the account
of the applicable Borrower or Borrowers on the books of the Administrative
Agent with the amount of such funds or (B) wire transfer of such funds, in
each case in accordance with instructions provided to (and reasonably
acceptable to) the Administrative Agent by the Borrower Representative;
provided, however, that if, on the date a Borrowing Request
with respect to a Revolving Borrowing is given by the Borrower
Representative, there are LC Disbursements and/or LC Borrowings outstanding,
then the proceeds of such Revolving Borrowing, first, shall be
applied to the payment in full of any such LC Disbursements and/or LC
Borrowings, and second, shall be made available to the Borrower
Representative as provided above.”

     3.15 Section 2.18(b) of the Credit Agreement is hereby deleted in its entirety and the
following is hereby substituted in its stead: “(b) Intentionally omitted.”

     3.16 Section 3.03(c) of the Credit Agreement is hereby deleted in its entirety and the
following is hereby substituted in its stead: “(c) Intentionally omitted.”

     3.17 Section 4.02(e) of the Credit Agreement is hereby deleted in its entirety and the
following is hereby substituted in its stead: “(e) Intentionally omitted.”

 - 9 - 

 

     3.18 The word “and” appearing immediately after the semicolon in Section 7.01(h) of the Credit
Agreement is hereby deleted.

     3.19 The period appearing at the end of Section 7.01(i) of the Credit Agreement is hereby
deleted and the following is hereby substituted in its stead: “;”.

     3.20 The following new subsections are hereby inserted immediately after Section 7.01(i) of
the Credit Agreement and immediately before Section 7.02 of the Credit Agreement:

“(j) Indebtedness of any Guarantor incurred as an account party in
respect of Letter(s) of Credit: and

(k) Indebtedness of any Loan Party secured only by patents, patent
applications and registrations, trademarks, trademark applications
and registrations, copyrights, and copyright applications and
registrations of any Loan Party, and any rights related to the
foregoing, provided that after giving effect thereto, the
Companies will remain in compliance with Section 7.12.”

     3.21 The period appearing at the end of Section 7.02(h) of the Credit Agreement is hereby
deleted and the following is hereby substituted in its stead: “;”.

     3.22 The following new subsection is hereby inserted immediately after Section 7.02(h) of the
Credit Agreement and immediately before Section 7.03 of the Credit Agreement:

“(i) Liens solely on patents, patent applications and registrations,
trademarks, trademark applications and registrations, copyrights and
copyright applications and registrations of any Loan Party, and any
rights related to the foregoing, provided that such Liens
secure only Indebtedness permitted by clause (k) of section 7.01.”

     3.23 Section 7.12(b) of the Credit Agreement is hereby deleted in its entirety and the
following is hereby substituted in its stead:

“(b) Consolidated Leverage Ratio. The Companies will not permit the
Consolidated Leverage Ratio, determined for any Test Period ending on any date
during any period set forth below, to be more than the ratio set forth below
opposite such period:

	 	 	 
	Period	 	Ratio
	October 31, 2008 and January 31, 2009

	 	3.25:1.00
	April 30, 2009 and each fiscal quarter thereafter

	 	3.00:1.00

     3.24 Section 10.02(a)(i) of the Credit Agreement is hereby deleted in its entirety and the
following is hereby substituted in its stead:

 - 10 - 

 

	 	 	 
	“(i)

	 	if to the Administrative Agent at:
	 
	 	 
	 

	 	TD Bank, N.A.
	 

	 	1441 Main Street
	 

	 	Springfield, MA 01103
	 

	 	Attention: Maria P. Goncalves,
	 

	 	               Senior Vice President — Commercial Loans
	 

	 	Facsimile No.: (413) 748-8037
	 
	 	 
	 

	 	with copy to:
	 
	 	 
	 

	 	Edwards Angell Palmer & Dodge LLP
	 

	 	111 Huntington Avenue
	 

	 	Boston, MA 02199
	 

	 	Attention: Mark I. Fogel, Esq.
	 

	 	Facsimile No.: (617) 227-4420”.

          3.25 Each of Schedule 2.01 (Applicable Percentage), Schedule 5.06(a) (Real
Property), Schedule 5.14 (Material Agreements) and Schedule 6.12 (Depository Banks)
to the Credit Agreement are hereby deleted in their entirety and Schedule 2.01 (Applicable
Percentage), Schedule 5.06(a) (Real Property), Schedule 5.14 (Material Agreements)
and Schedule 6.12 (Depository Banks) attached hereto are hereby substituted in their stead.

     4. Release and Termination of Copyright Security Agreement, Patent Security Agreement and
Trademark Security Agreement. The Administrative Agent hereby affirms the termination and
release of the Copyright Security Agreement, the Patent Security Agreement and the Trademark
Security Agreement. Notwithstanding the foregoing sentence, nothing contained herein is intended
to evidence or acknowledge satisfaction or termination of the Obligations.

     5. Representations and Warranties. Each of the Credit Parties, by its execution
hereof, jointly and severally represents and warrants as follows:

     5.1. Legal Existence; Organization. Each Credit Party is duly organized and
validly existing and in good standing under the laws of the jurisdiction of its organization
and under the laws of each other jurisdiction in which it is qualified to do business, with
all power and authority (corporate or otherwise) necessary (a) to enter into this Amendment
No. 1 (and the attached acknowledgements and consents to which such Credit Party is a party)
and the documents executed in connection therewith and to perform all of its obligations
hereunder and thereunder and (b) to own its properties and carry on the business now
conducted or proposed to be conducted by it.

     5.2. Enforceability. Each Credit Party has taken all action (corporate or
otherwise) required to make the provisions of this Amendment No. 1 (and the attached
acknowledgements and consents to which such Credit Party is a party) and the documents
executed in connection therewith valid and enforceable obligations of such Credit Party, as
they purport to be. Each Credit Party has duly authorized, executed and delivered this
Amendment No. 1 (and the attached acknowledgements and consents to which such Credit Party
is a party) and the documents executed in connection therewith. This Amendment No. 1 (and
the attached acknowledgements and consents to which such Credit Party is a party) and each
document executed in connection therewith is the legal, valid and binding obligations of
such Credit Party and each is enforceable against such Credit Party in accordance with its
terms.

 - 11 - 

 

     5.3. No Legal Obstacle to Agreements. Neither the execution, delivery or
performance by any Credit Party of this Amendment No. 1 (or the attached acknowledgements
and consents to which such Credit Party is a party) or any document executed in connection
therewith, nor the consummation of any other transaction referred to or contemplated by this
Amendment No. 1 (or the attached acknowledgements and consents to which such Credit Party is
a party) or any document executed in connection therewith, nor the fulfillment of the terms
hereof or thereof, has constituted or resulted in or will constitute or result in:

     5.3.1 any breach or termination of any agreement, instrument, deed or lease to
which such Credit Party is a party or by which such Credit Party is bound, or of the
charter, by-laws or other organizational documents, as applicable, of such Credit
Party;

     5.3.2 the violation of any law, judgment, decree or governmental order, rule or
regulation applicable to such Credit Party;

     5.3.3 the creation under any agreement, instrument, deed or lease of any Lien
(other than Liens on the Collateral which secure the Obligations) upon any of the
assets of such Credit Party; or

     5.3.4 any redemption, retirement or other repurchase obligation of such Credit
Party under any charter, by-law, organizational document, agreement, instrument,
deed or lease to which such Credit Party is a party.

Except such as have been obtained and are in full force and effect, no approval,
authorization or other action by, or declaration to or filing with, any governmental or
administrative authority or any other Person is required to be obtained or made by any
Credit Party in connection with the execution, delivery and performance by such Credit
Party of this Amendment No. 1 (and the attached acknowledgements and consents to which such
Credit Party is a party) or any document executed in connection therewith or the
consummation of the transactions contemplated hereby or thereby.

     5.4. Defaults. No Default exists or, immediately after giving effect to this
Amendment No. 1, will exist.

     5.5. Incorporation of Representations and Warranties. The representations and
warranties set forth in Article V of the Credit Agreement, as hereby amended, and in
Section 10 of the Holdings/TCAC Guaranty, Section 10 of the Holdings/S&W Corp. Guaranty,
Section 10 of the Operating Companies Guaranty and Section 10 of the Subsidiary Guaranty
are each true and correct in all material respects on the date hereof as if originally made
on and as of the date hereof, except as the same may expressly relate to an earlier date.

     6. Conditions. The effectiveness of this Amendment No. 1 shall be subject to and
shall occur upon the satisfaction of the following conditions:

          6.1 Proper Proceedings. The execution and delivery by the Credit Parties of
this Amendment No. 1 (and the attached acknowledgements and consents to which each such
Credit Party is a party) and the documents executed in connection therewith and the
performance of their respective obligations hereunder and thereunder shall have been
authorized by all necessary proceedings of each of the Credit Parties. All necessary
consents, approvals and authorizations of any governmental or administrative agency or any
other Person with respect to any of the

 - 12 - 

 

transactions contemplated by this Amendment No. 1 and the documents executed in
connection therewith shall have been obtained and shall be in full force and effect.

     6.2 Consummation of this Amendment No. 1. The Administrative Agent shall have
received this Amendment No. 1 (with the attached acknowledgements and consents) fully
executed by the parties hereto and thereto.

     6.3 Certificates of Secretary. The Administrative Agent shall have received a
Certificate of each Credit Party dated as of the date hereof and executed by its Secretary
or Assistant Secretary, which shall (A) certify the resolutions of its Board of Directors,
members or other body authorizing the execution, delivery and performance of this Amendment
No. 1 and other documents to which it is a party, (B) identify by name and title and bear
the signatures of the Financial Officers and any other officers of such Credit Party
authorized to sign this Amendment No. 1 and such other documents, and (C) certify that there
has been no change in the certificate or articles of incorporation and by-laws of each
Credit Party since November 30, 2007 and that such certificate or articles of incorporation
and by-laws are in full force and effect or, if any such certificate or articles of
incorporation or by-laws have been changed since November 30, 2007, attach a copy of such
certificate or articles of incorporation or by-laws and certify such copy of being true and
correct and in full force and effect.

     6.4 Assignments and Acceptances of Certain Collateral Documents. Toronto
Dominion (Texas), as resigning Administrative Agent, and TD Bank, as successor
Administrative Agent, shall have executed and delivered (a) an Assignment and Acceptance of
Mortgage, Collateral Assignment of Leases and Rents, Security Agreement and Fixture Filing
with respect to the real property located at 2100 Roosevelt Avenue and 299 Page Boulevard,
Springfield, Hampden County, Massachusetts, (b) an Assignment and Acceptance of Mortgage,
Collateral Assignment of Leases and Rents, Security Agreement and Fixture Filing with
respect to the real property located at 19 Aviation Drive, Houlton, Southern Aroostook
County, Maine, and (c) an Assignment and Acceptance of Mortgage, Collateral Assignment of
Leases and Rents, Security Agreement and Fixture Filing with respect to the real property
located at 400 North Main Street, Rochester, Strafford County, New Hampshire.

     6.5 Title Updates and Title Endorsements. The Administrative Agent shall have
received a title update to the loan policies of title insurance issued by Stewart Title
Guaranty Company (policy numbers M-9402-84482, M-9402-84481 and M-9402-84484) in form and
substance acceptable to the Administrative Agent. The Borrowers agree to furnish to the
Administrative Agent, within sixty (60) days of the date hereof, a title endorsement to
each of the title policies described in the preceding sentence reflecting the recording of
the documents described in Section 5.4(d), (e) and (f) above and otherwise in form and
substance acceptable to the Administrative Agent.

     6.5 Cash Management Agreement. The Administrative Agent shall have received
duly executed copies of the Cash Management Agreements, such Cash Management Agreements to
be fully executed by the parties thereto and in form and substance acceptable to the
Administrative Agent.

     6.6 Releases and Terminations of Security Interests in Copyrights, Patents and
Trademarks. The Administrative Agent shall have executed (a) a Release and Termination
of Security Interest in Copyrights with respect to the Copyright Security Agreement, (b) a
Release and Termination of Security Interest in Patents with respect to the Patent Security
Agreement, and (c) a Release and Termination of Security Interest in Trademarks with respect
to the

 - 13 - 

 

Trademark Security Agreement.

     6.7 Amendment No. 1 to Pledge and Security Agreement. The Administrative Agent
shall have received an Amendment No. 1 to Pledge and Security Agreement fully executed by
the parties thereto.

     6.8 Other Documents. The Administrative Agent shall have received duly
executed copies of such other certificates, documents, instruments and agreements as the
Administrative Agent shall reasonably request in connection with the transactions
contemplated by this Amendment No. 1, each in form and substance acceptable to the
Administrative Agent.

     6.9 Legal Matters. All legal matters incident to the transactions contemplated
hereby shall be satisfactory to counsel for the Administrative Agent and the Lenders.

     6.10 Fees and Expenses. The Credit Parties shall have paid all fees and
expenses of the Administrative Agent and the Lenders (including the reasonable fees and
expenses of their legal counsel) in connection with this Amendment No. 1 and the documents
executed in connection therewith and the transactions contemplated herein.

     7. Further Assurances. Each of the Credit Parties will, promptly upon the request of
the Administrative Agent from time to time, execute, acknowledge, deliver, file and record all such
instruments and notices, and take all such other action, as the Administrative Agent deems
necessary or advisable to carry out the intent and purposes of this Amendment No. 1 (and the
attached acknowledgements and consents) and the documents executed in connection therewith.

     8. Release.

     (a) In consideration of the agreements of the Administrative Agent and the Lenders
contained herein and for other good and valuable consideration, the receipt and sufficiency
of which is hereby acknowledged, each Credit Party, on behalf of itself and its successors,
assigns, and other legal representatives, hereby absolutely, unconditionally and irrevocably
releases, remises and forever discharges Administrative Agent, each Lender and their
respective successors and assigns, and their affiliates, subsidiaries, predecessors,
directors, officers, attorneys, employees, agents and other representatives (Administrative
Agent, each Lender and all such other Persons being hereinafter referred to collectively as
the “Releasees”, and individually as a “Releasee”), of and from all demands,
actions, causes of action, suits, covenants, contracts, controversies, agreements, promises,
sums of money, accounts, bills, reckonings, damages and any and all other claims,
counterclaims, defenses, rights of set-off, demands and liabilities whatsoever
(individually, a “Claim”, and collectively, “Claims”) of every name and
nature, known or unknown, suspected or unsuspected, both at law and in equity, which any
Credit Party or any of its successors, assigns, or other legal representatives, may now or
hereafter own, hold, have or claim to have against the Releasees or any of them for, upon,
or by reason of any circumstance, action, cause or thing whatsoever which arises at any time
on or prior to the day and date of this Amendment No. 1 for or on account of, or in relation
to, or in any way in connection with any of the Credit Agreement, as amended by this
Amendment No. 1, the other Loan Documents, or the transactions thereunder or related
thereto.

     (b) Each Credit Party understands, acknowledges and agrees that the release set forth
above may be pleaded as a full and complete defense and may be used as a basis for an
injunction against any action, suit or other proceeding which may be instituted, prosecuted
or attempted in breach of the provisions of such release.

 - 14 - 

 

     (c) Each Credit Party agrees that no fact, event, circumstance, evidence or transaction
which could now be asserted or which may hereafter be discovered shall affect in any manner
the final, absolute and unconditional nature of the release set forth above.

     (d) Each Credit Party, on behalf of itself and its respective successors, assigns, and
other legal representatives, hereby absolutely, unconditionally and irrevocably, covenants
and agrees with and in favor of each Releasee that it will not sue (at law, in equity, in
any regulatory proceeding or otherwise) any Releasee on the basis of any Claim released,
remised and discharged by the Credit Parties pursuant to Section 8(a) of this Amendment No.
1. If any Credit Party, or its respective successors, assigns, or other legal
representatives violates the foregoing covenant, each Credit Party, for itself and its
successors, assigns and legal representatives, agrees to pay, in addition to such other
damages as any Releasee may sustain as a result of such violation, all attorneys’ fees and
costs incurred by any Releasee as a result of such violation.

     9. General. The Credit Agreement, as amended hereby, and all of the Loan Documents
are each confirmed as being in full force and effect. The Credit Agreement, as amended hereby, and
the other Loan Documents constitute the entire understanding of the parties with respect to the
subject matter hereof and thereof and supersede all prior and current understandings and
agreements, whether written or oral. This Amendment No. 1 may be executed in any number of
counterparts, which together shall constitute one instrument, and shall bind and inure to the
benefit of the parties thereto and their respective successors and assigns, including as such
successors and assigns all holders of any Obligation. Delivery of an executed counterpart of a
signature page of this Amendment No. 1 by telecopy or in PDF format by electronic mail shall be
effective as delivery of a manually executed counterpart of this Amendment No. 1. This Amendment
No. 1 (and attached acknowledgments and consents) shall be governed by and construed in accordance
with the laws of the State of New York, including, but not limited to, Section 5-1401 of the New
York General Obligations Law.

[Signatures begin on next page]

- 15 -

 

     Each of the undersigned has caused this Amendment No. 1 to Credit Agreement and Assignment and
Acceptance of Collateral Documents to be executed and delivered by its duly authorized officer as
of the date first above written.

	 	 	 	 	 
	 	Credit Parties:

SMITH & WESSON HOLDING CORPORATION

 	 
	 	By:  	/s/ Michael F. Golden
 	 
	 	 	Michael F. Golden, President 	 
	 	 	 	 
	 
	 	SMITH & WESSON CORP.

 	 
	 	By:  	/s/ Michael F. Golden
 	 
	 	 	Michael F. Golden, President 	 
	 	 	 	 
	 
	 	THOMPSON/CENTER ARMS COMPANY, INC.

 	 
	 	By:  	/s/ Michael F. Golden
 	 
	 	 	Michael F. Golden, President 	 
	 	 	 	 
	 
	 	THOMPSON CENTER HOLDING CORPORATION

 	 
	 	By:  	Michael F. Golden
 	 
	 	 	Michael F. Golden, President 	 
	 	 	 	 
	 

[Signatures appear on following pages]

[Signature Page to Amendment No. 1 to Credit Agreement]

 

 

	 	 	 	 	 
	 	FOX RIDGE OUTFITTERS, INC.

 	 
	 	By:  	/s/ Michael F. Golden
 	 
	 	 	Michael F. Golden, President 	 
	 	 	 	 
	 
	 	BEAR LAKE HOLDINGS, INC.

 	 
	 	By:  	/s/ Michael F. Golden
 	 
	 	 	Michael F. Golden, President 	 
	 	 	 	 
	 
	 	K.W. THOMPSON TOOL COMPANY, INC.

 	 
	 	By:  	/s/ Michael F. Golden
 	 
	 	 	Michael F. Golden, President 	 
	 	 	 	 
	 
	 	O.L. DEVELOPMENT, INC.

 	 
	 	By:  	/s/ Michael F. Golden
 	 
	 	 	Michael F. Golden, President 	 
	 	 	 	 
	 

[Signatures appear on following pages]

[Signature Page to Amendment No. 1 to Credit Agreement]

 

 

     Each of the undersigned has caused this Amendment No. 1 to be executed and delivered by its
duly authorized officer as of the date first above written.

	 	 	 	 	 
	 	Resigning Administrative Agent:

TORONTO DOMINION (TEXAS) LLC,

as resigning Administrative Agent

 	 
	 	By:  	/s/ Deborah Gravinese
 	 
	 	 	Deborah Gravinese, President 	 
	 	 	 	 
	 
	 	Successor Administrative Agent:

TD BANK, N.A.,

as successor Administrative Agent

 	 
	 	By:  	/s/ Maria P. Goncalves
 	 
	 	 	Maria P. Goncalves, Senior Vice President 	 
	 	 	 	 
	 
	 	Lender:

TD BANK, N.A., as sole Lender

 	 
	 	By:  	/s/ Maria P. Goncalves
 	 
	 	 	Maria P. Goncalves, Senior Vice President 	 
	 	 	 	 
	 

[Signatures appear on following pages]

[Signature Page to Amendment No. 1 to Credit Agreement]

 

 

ACKNOWLEDGMENT AND CONSENT

OF

HOLDINGS/THOMPSON/CENTER ARMS GUARANTY

     Each of the undersigned Guarantors, Smith & Wesson Holding Corporation, a Nevada corporation,
and Thompson/Center Arms Company, Inc., a New Hampshire corporation, as parties to the
Holdings/Thompson/Center Arms Guaranty dated as of November 30, 2007 (the
“Holdings/Thompson/Center Arms Guaranty”), hereby consents to Amendment No. 1 to Credit
Agreement and Assignment and Acceptance of Collateral Documents of even date herewith
(“Amendment No. 1”), agrees to the provisions applicable to such Guarantor contained
therein and acknowledges and confirms that the Holdings/Thompson/Center Arms Guaranty and all of
the Loan Documents, are and remain in full force and effect. Each of the undersigned Guarantors
jointly and severally represents to the Administrative Agent and the Lenders that the
representations and warranties set forth in Article V of the Credit Agreement (as that term is
defined in the Amendment No. 1) and Section 10 of the Holdings/Thompson/Center Arms Guaranty and in
the other Loan Documents are each true and correct in all material respects on the date hereof and
on the Amendment Date (as that term is defined in Amendment No. 1) as if originally made on the
date hereof and on the Amendment Date, except as the same may expressly relate to an earlier date.
Delivery of an executed counterpart of a signature page of this Amendment No. 1 by telecopy or in
PDF format by electronic mail shall be effective as delivery of a manually executed counterpart of
this Acknowledgment and Consent of Holdings/Thompson/Center Arms Guaranty.

[Signatures appear on following pages]

 

 

     IN WITNESS WHEREOF, each of the undersigned has executed, or has
caused the Acknowledgment and Consent of Holdings/Thompson/Center
Arms Guaranty to be executed and delivered by its duly authorized
officer as of October 31, 2008.

	 	 	 	 	 
	 	Guarantors:

SMITH & WESSON HOLDING CORPORATION

 	 
	 	By:  	/s/ Michael F. Golden
 	 
	 	 	Michael F. Golden, President 	 
	 	 	 	 
	 
	 	THOMPSON/CENTER ARMS COMPANY, INC.

 	 
	 	By:  	/s/ Michael F. Golden
 	 
	 	 	Michael F. Golden, President 	 
	 	 	 	 
	 

[Signatures appear on following pages]

[Signature Page to Amendment No. 1 to Credit Agreement]

 

 

ACKNOWLEDGMENT AND CONSENT

OF

HOLDINGS/S&W CORP. GUARANTY

     Each of the undersigned Guarantors, Smith & Wesson Holding Corporation, a Nevada corporation,
and Smith & Wesson Corp., a Delaware corporation, as parties to the Holdings/S&W Corp. Guaranty
dated as of November 30, 2007 (the “Holdings/S&W Corp. Guaranty”), hereby consents to
Amendment No. 1 to Credit Agreement and Assignment and Acceptance of Collateral Documents of even
date herewith (“Amendment No. 1”), agrees to the provisions applicable to such Guarantor
contained therein and acknowledges and confirms that the Holdings/S&W Corp. Guaranty and all of the
Loan Documents, are and remain in full force and effect. Each of the undersigned Guarantors jointly
and severally represents to the Administrative Agent and the Lenders that the representations and
warranties set forth in Article V of the Credit Agreement (as that term is defined in the Amendment
No. 1) and Section 10 of the Holdings/S&W Corp. Guaranty and in the other Loan Documents are each
true and correct in all material respects on the date hereof and on the Amendment Date (as that
term is defined in Amendment No. 1) as if originally made on the date hereof and on the Amendment
Date, except as the same may expressly relate to an earlier date. Delivery of an executed
counterpart of a signature page of this Amendment No. 1 by telecopy or in PDF format by electronic
mail shall be effective as delivery of a manually executed counterpart of this Acknowledgment and
Consent of Holdings/S&W Corp. Guaranty.

[Signatures appear on following pages]

 

 

     IN WITNESS WHEREOF, each of the undersigned has executed, or has
caused the Acknowledgment and Consent of Holdings/S&W Corp.
Guaranty to be executed and delivered by its duly authorized
officer as of October 31, 2008.

	 	 	 	 	 
	 	Guarantors:

SMITH & WESSON HOLDING CORPORATION

 	 
	 	By:  	/s/ Michael F. Golden
 	 
	 	 	Michael F. Golden, President 	 
	 	 	 	 
	 
	 	SMITH & WESSON CORP.

 	 
	 	By:  	/s/ Michael F. Golden
 	 
	 	 	Michael F. Golden, President 	 
	 	 	 	 
	 

[Signatures appear on following pages]

[Signature Page to Amendment No. 1 to Credit Agreement]

 

 

ACKNOWLEDGMENT AND CONSENT

OF

OPERATING COMPANIES GUARANTY

     Each of the undersigned Guarantors, Smith & Wesson Corp., a Delaware corporation, and
Thompson/Center Arms Company, Inc., a New Hampshire corporation, as parties to the Operating
Companies Guaranty dated as of November 30, 2007 (the “Operating Companies Guaranty”),
hereby consents to Amendment No. 1 to Credit Agreement and Assignment and Acceptance of Collateral
Documents of even date herewith (“Amendment No. 1”), agrees to the provisions applicable to
such Guarantor contained therein and acknowledges and confirms that the Operating Companies
Guaranty and all of the Loan Documents, are and remain in full force and effect. Each of the
undersigned Guarantors jointly and severally represents to the Administrative Agent and the Lenders
that the representations and warranties set forth in Article V of the Credit Agreement (as that
term is defined in the Amendment No. 1) and Section 10 of the Operating Companies Guaranty and in
the other Loan Documents are each true and correct in all material respects on the date hereof and
on the Amendment Date (as that term is defined in Amendment No. 1) as if originally made on the
date hereof and on the Amendment Date, except as the same may expressly relate to an earlier date.
Delivery of an executed counterpart of a signature page of this Amendment No. 1 by telecopy or in
PDF format by electronic mail shall be effective as delivery of a manually executed counterpart of
this Acknowledgment and Consent of Operating Companies Guaranty.

[Signatures appear on following pages]

 

 

     IN WITNESS WHEREOF, each of the undersigned has executed, or has
caused the Acknowledgment and Consent of Operating Companies
Guaranty to be executed and delivered by its duly authorized
officer as of October 31, 2008.

	 	 	 	 	 
	 	Guarantors:

SMITH & WESSON CORP.

 	 
	 	By:  	/s/ Michael F. Golden
 	 
	 	 	Michael F. Golden, President 	 
	 	 	 	 
	 
	 	THOMPSON/CENTER ARMS COMPANY, INC.

 	 
	 	By:  	/s/ Michael F. Golden
 	 
	 	 	Michael F. Golden, President 	 
	 	 	 	 
	 

[Signatures appear on following pages]

[Signature Page to Amendment No. 1 to Credit Agreement]

 

 

ACKNOWLEDGMENT AND CONSENT

OF

SUBSIDIARY GUARANTY

     Each of the undersigned Guarantors, Thompson Center Holding Corporation, a Delaware
corporation, Fox Ridge Outfitters, Inc., a New Hampshire corporation, Bear Lake Holdings, Inc., a
Delaware corporation, K.W. Thompson Tool Company, Inc., a New Hampshire corporation, and O.L.
Development, Inc., a New Hampshire corporation, as parties to the Subsidiary Guaranty dated as of
November 30, 2007 (the “Subsidiary Guaranty”), hereby consents to Amendment No. 1 to Credit
Agreement and Assignment and Acceptance of Collateral Documents of even date herewith
(“Amendment No. 1”), agrees to the provisions applicable to such Guarantor contained
therein and acknowledges and confirms that the Subsidiary Guaranty and all of the Loan Documents,
are and remain in full force and effect. Each of the undersigned Guarantors jointly and severally
represents to the Administrative Agent and the Lenders that the representations and warranties set
forth in Article V of the Credit Agreement (as that term is defined in the Amendment No. 1) and
Section 10 of the Subsidiary Guaranty and in the other Loan Documents are each true and correct in
all material respects on the date hereof and on the Amendment Date (as that term is defined in
Amendment No. 1) as if originally made on the date hereof and on the Amendment Date, except as the
same may expressly relate to an earlier date. Delivery of an executed counterpart of a signature
page of this Amendment No. 1 by telecopy or in PDF format by electronic mail shall be effective as
delivery of a manually executed counterpart of this Acknowledgment and Consent of Subsidiary
Guaranty.

[Signatures appear on following pages]

 

 

     IN WITNESS WHEREOF, each of the undersigned has executed, or has
caused the Acknowledgment and Consent of Subsidiary Guaranty to be
executed and delivered by its duly authorized officer as of October
31, 2008.

	 	 	 	 	 
	 	Guarantors:

THOMPSON CENTER HOLDING CORPORATION

 	 
	 	By:  	/s/ Michael F. Golden
 	 
	 	 	Michael F. Golden, President 	 
	 	 	 	 
	 
	 	FOX RIDGE OUTFITTERS, INC.

 	 
	 	By:  	/s/ Michael F. Golden
 	 
	 	 	Michael F. Golden, President 	 
	 	 	 	 
	 
	 	BEAR LAKE HOLDINGS, INC.

 	 
	 	By:  	/s/ Michael F. Golden
 	 
	 	 	Michael F. Golden, President 	 
	 	 	 	 
	 
	 	K.W. THOMPSON TOOL COMPANY, INC.

 	 
	 	By:  	/s/ Michael F. Golden
 	 
	 	 	Michael F. Golden, President 	 
	 	 	 	 
	 
	 	O.L. DEVELOPMENT, INC.

 	 
	 	By:  	/s/ Michael F. Golden
 	 
	 	 	Michael F. Golden, President 	 
	 	 	 	 
	 

[Signature Page to Amendment No. 1 to Credit Agreement]

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