Document:

exv10w1

Exhibit 10.1

APACHE CORPORATION

OUTSIDE DIRECTORS’ RETIREMENT PLAN

(As Amended and Restated July 21, 2011)

APACHE CORPORATION (the “Company”) established the Apache Corporation Outside Directors’ Retirement
Plan (the “Plan”), effective as of December 15, 1992, to provide non-employee Directors of the
Company (“Outside Directors”) with certain retirement and death payments. The purpose of the Plan
is to advance the interests of the Company, its subsidiaries, and its stockholders by continuing to
attract and retain outstanding individuals as Outside Directors and to stimulate the efforts of
such individuals by giving suitable recognition to services which will contribute materially to the
success of the Company.

It is the Company’s express intention that this Plan comply with the requirements of Code §409A,
and the Plan shall be interpreted in that light.

ARTICLE I

Eligibility, Participation and Contributions

1.1 Eligibility and Participation.

     Each Outside Director begins to participate in the Plan as of the date his or her Service
begins.

1.2 Contributions.

     All amounts payable under the Plan shall be paid from the general assets of the Company.
Nothing contained in the Plan shall be deemed to create any fiduciary relationship between the
Company and the participating Outside Director (“Participant”). The rights of a Participant under
the Plan are no greater than the rights of an unsecured general creditor of the Company.

ARTICLE II

Retirement Payments

	2.1	 	Definitions.

     The term “Separation from Service” has the same meaning as the term “separation from service”
in Code §409A(a)(2)(A)(i). A Separation from Service is determined using the default rules in the
regulations and other guidance of general applicability issued pursuant to Code §409A, including
the special rules for a member of a board of directors found in Treasury Regulation §1.409A-1(h)(5)
and §1.409A-1(c)(2)(ii). In general, a Separation from Service will occur when a Participant
ceases to be a member of the Company’s Board of Directors.

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     The term “Specified Employee” has the same meaning as the term “specified employee” in Code
§409A(a)(2)(B)(i), and is determined using the default rules in the regulations and other guidance
of general applicability issued pursuant to Code §409A.

	2.2	 	Retirement Payments.

     (a) Eligibility for Benefits. A Participant who Retires with four or more Quarters of
Service is entitled to receive benefits under the Plan.

     (b) Amount of Benefits. The amount of benefits under the Plan is equal to the value
of a series of quarterly payments, with each payment equal in amount to one-fourth of the
Participant’s Annual Director’s Retainer, and with the number of quarterly payments equal to the
number of the Participant’s Quarters of Service. As a consequence, each Participant will generally
receive an annual benefit of 100% of his or her Annual Director’s Retainer.

     (c) “Annual Director’s Retainer” means the aggregate annual amount of an Outside
Director’s board retainer fee payable pursuant to section 1 of the Company’s Non-Employee
Directors’ Compensation Plan (or comparable section of any successor plan), whether or not all or a
portion of such amount is deferred or delayed. Such amount will be determined as of the earlier of
the date a Participant ceases to be an Outside Director or the date the Participant dies.

     (d) “Quarter of Service” means the aggregate total full months of Service as an
Outside Director divided by three and rounded up to the next whole number, up to a maximum of 40
Quarters of Service.

     (e) “Retirement, Retired or Retires” means a Participant’s ceasing to hold office as
an Outside Director, for any reason other than death.

     (f) “Service” means the aggregate total, not to exceed 120, of (i) the number of full
months beginning on or after July 1, 1992 (whether or not consecutive) that a Participant held
office as an Outside Director, whether or not a Participant at the time, and (ii) 1/2 the number of
full months prior to July 1, 1992 (whether or not consecutive) that a Participant held office as an
Outside Director; provided, however, that a Participant who, as of December 15, 1992, has held
office as an Outside Director for an aggregate total of 15 years shall automatically be credited
with 120 full months of Service.

     (g) Episodic Participation. If a Participant has a Separation from Service and then
becomes an Outside Director again, (i) the Participant’s benefits from his or her initial episode
of participation shall be paid according to the terms of the Plan on the date of his or her
Separation from Service and shall not be affected by any subsequent Service, and (ii) the
Participant’s benefits from his or her later episodes of participation shall be calculated by
ignoring his or her Service from earlier episodes of participation. In calculating the amount of
benefits for the most recent episode of participation, the

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maximum Quarters of Service is 40, reduced by the number of Quarters of Service for which he
or she earned benefits under this Plan from earlier episodes of participation.

2.3 Retirement Payments Following a Change of Control.

     In the event of a “change of control” of the Company, as defined in the Company’s Income
Continuance Plan (as amended or the corresponding provisions of any successor plan), each then
current Outside Director shall be eligible for the benefits described in section 2.2 even if the
Outside Director has less than four Quarters of Service. If the change of control is a transaction
described in §409A(a)(2)(A)(v) of the Internal Revenue Code of 1986, as amended (“Code”), each
Participant shall be paid a single lump-sum payment on the date of the change of control, or as
soon as practicable thereafter, equal to the net present value of the benefit to which the
Participant is entitled, calculated in the manner described in section 2.5, as of the date of the
change of control; however, if the Participant was a Specified Employee whose Separation from
Service occurred less than six months before the change of control, he or she shall be paid a
single lump-sum payment six months after the Separation from Service, or as soon as practicable
thereafter, equal to the net present value of the benefit to which the Participant is entitled,
calculated in the manner described in section 2.5, as of the date six months after the Separation
from Service. If the change of control is not a transaction described in Code §409A(a)(2)(A)(v),
each Participant shall be paid at the time(s) specified in section 2.4 or 2.5, whichever is
applicable.

2.4 Quarterly Payments.

     A Participant may elect to be paid quarterly installments that are paid on the last day of
each calendar quarter (or as near to that date as administratively practicable). See section 2.5
for the deadline for the Participant’s payout election. The first quarterly payment shall be made
as of the last day of the calendar quarter after the date of the Participant’s Separates from
Service, unless the Participant is a Specified Employee, in which case the first two quarterly
payments shall be delayed until, and paid with, the third regularly scheduled quarterly payment.

2.5 Lump-Sum Payments.

     A Participant shall receive a single lump-sum payment unless the Participant elects quarterly
installments. Participants on December 31, 2008 have already made their payout election. A new
Participant’s payout election must be made within 30 days after the individual becomes an Outside
Director. Once the deadline for making a payout election has passed, the payout election is
irrevocable.

     The lump sum shall be paid as soon as administratively practicable after the Participant’s
Separation from Service, unless the Participant is a Specified Employee, in which case the lump sum
shall be paid as soon as administratively practicable after six months after the Participant’s
Separation from Service. The amount of the lump sum

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shall be calculated by the Committee as of the date of the Participant’s Separation from Service.
The amount of the lump sum shall be equal to the net present value of the quarterly payments to
which the Participant would otherwise be entitled, determined using an annual interest rate equal
to the rate on ten-year treasury bonds/notes as reported in The Wall Street Journal published on or
most recently prior to the date of the Participant’s Separation from Service.

2.6 Retirement before 2011.

     A Participant whose Separation from Service occurred between December 31, 2004 and January 1,
2009, shall receive his or her benefit in accordance with the terms of the Plan in effect at the
time of the Separation from Service. A Participant who Retired before January 1, 2005, shall
receive his or her benefit in accordance with the terms of the Plan in effect at the time of the
Retirement. A Participant whose Separation from Service occurred between January 1, 2009 and July
21, 2011, shall receive his or her benefit in accordance with the terms of the Plan in effect at
the time of the Retirement.

ARTICLE III

Death Payments

3.1 Death Benefits.

     (a) Eligibility for Death Benefits. If a Participant dies before receiving all of his
or her benefits under Article II, the Participant’s Beneficiary, as determined in section 3.2,
shall receive the remaining benefits. If a Participant elected quarterly payments, the
Participant’s Beneficiary shall be paid a lump sum equal to the net present value of any remaining
payments, calculated as of the date of the Participant’s death, and calculated in the manner
specified in section 2.5. If a Participant is scheduled to receive a single lump-sum payment, but
dies before doing so, the Participant’s Beneficiary shall be paid the lump sum.

     (b) Timing. Payment to the Beneficiary shall be made as soon as administratively
practicable four months after the Participant’s death, which provides the Beneficiary with an
opportunity to disclaim, except that no payment shall be made until the Company has been furnished
with proof of death and such other information as it may reasonably require.

     (c) Beneficiary in Pay Status. The Beneficiary of a Participant who died on or before
December 31, 2008 shall receive his or her death benefits in accordance with the terms of the Plan
in effect on the date of the Participant’s death.

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3.2 Beneficiaries.

     (a) “Beneficiary” means the recipient of the Participant’s death benefits under
section 3.1.

     (b) Designation. Each Participant shall designate one or more persons, trusts, or
other entities as his or her Beneficiary. In the absence of an effective Beneficiary designation
as to part or all of a Participant’s death benefits, the Participant’s surviving Spouse, if any,
shall be the Participant’s Beneficiary, and in the absence of a surviving Spouse, the Participant’s
estate shall be the Beneficiary. Unless the Participant’s Beneficiary designation form specifies
otherwise, if a Beneficiary dies after the Participant but before being paid by the Plan, the Plan
shall pay the Beneficiary’s estate.

     (c) Changing Beneficiaries. A Beneficiary designation may be changed by the
Participant at any time and without the consent of any previously designated Beneficiary. However,
if the Participant is married, the Participant’s Spouse shall be the Participant’s Beneficiary
unless the Spouse has consented to the designation of a different Beneficiary. To be effective,
the Spouse’s consent must have been made before January 1, 2005 or, if made on or after January 1,
2005, the Spouse’s consent must be in writing, witnessed by a notary public, and filed with the
Company. If the Participant has designated his or her Spouse as a primary or contingent
Beneficiary, and the Participant and Spouse later divorce (or their marriage is annulled), then the
former Spouse will be treated as having pre-deceased the Participant for purposes of interpreting a
Beneficiary designation form completed prior to the divorce or annulment; this provision will apply
only if the Company is notified of the divorce or annulment before payment to the former Spouse is
made.

     (d) “Spouse” shall mean the individual to whom a Participant is lawfully married
according to the laws of the state of the Participant’s domicile.

     (e) Disclaimers. Any individual or legal entity who is a Beneficiary may disclaim all
or any portion of his or her interest in the Plan, provided that the disclaimer satisfies the
requirements of Code §2518(b) and applicable state law. The legal guardian of a minor or legally
incompetent person may disclaim for such person. The personal representative (or the individual or
legal entity acting in the capacity of the personal representative according to applicable state
law) may disclaim on behalf of a Beneficiary who has died. The amount disclaimed shall be
distributed as if the disclaimant had predeceased the individual whose death caused the disclaimant
to become a Beneficiary.

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ARTICLE IV

Administration, Amendment and Termination

4.1 The Management Development and Compensation Committee.

     The Plan shall be administered by the Management Development and Compensation Committee (the
“Committee”) of the Company’s Board of Directors. All administrative duties, including but not
limited to, the power to interpret the Plan and to decide any dispute, shall be carried out by the
Committee, which shall have full discretion and authority hereunder. All claims under the Plan
shall be filed with the Company and shall be decided by the Committee. The decisions made by the
Committee shall be final and binding on all persons having or claiming to have rights under the
Plan.

4.2 Termination or Amendment of Plan.

     The Plan may be terminated or amended at any time through action of the Company’s Board of
Directors. No termination or amendment, however, shall reduce the payments (a) to a Participant or
Beneficiary where a Participant has already died or reached Retirement, (b) to which a Participant
is or may become entitled, based on such Participant’s Service and Annual Director’s Retainer as
determined on the effective date of such termination or amendment, or (c) to which a Participant is
or may become entitled pursuant to section 2.3 as a result of a change of control. The termination
of the Plan shall not affect the timing of any benefit payments; payments after the Plan has
terminated will be made at the time(s) specified in Articles II and III.

ARTICLE V

Miscellaneous

5.1 Inalienability of Payments.

     No Participant shall have the right to assign, transfer, hypothecate, encumber or anticipate
his or her interest in any payments under the Plan, nor shall the payments under the Plan be
subject to any legal process to levy upon or attach such payments for any claim against the
Participant, Spouse, or Beneficiary.

5.2 Notices.

     Any notice, form, or election required or permitted to be given under the Plan shall be in
writing and shall be given by first class mail, by Federal Express, UPS, or other carrier, by fax
or other electronic means, or by personal delivery to the appropriate party, addressed:

     (a) If to the Company, to Apache Corporation at its principal place of business at 2000 Post
Oak Boulevard, Suite 100, Houston, Texas 77056-4400 (Attention:

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Corporate Secretary) or at such other address as may have been furnished in writing by the Company
to a Participant; or

     (b) If to a Participant or Spouse, at the address the Participant has furnished to the Company
in writing.

     (c) If to a Beneficiary, at the address the Participant has furnished to the Company in
writing for such Beneficiary, unless the Beneficiary has furnished his or her own address to the
Company.

Any such notice to a Participant, Spouse, or Beneficiary shall be deemed to have been given as of
the third day after deposit in the United States Postal Service, postage prepaid, properly
addressed as set forth above, in the case of a mailed notice, or as of the date delivered in the
case of any other method of delivery.

5.3 Disposition of Unclaimed Payments.

     Any communication, statement or notice addressed to a Participant at his or her last post
office address, as provided to the Company under section 5.2, will be binding on the Participant,
Spouse, or Beneficiary for all purposes of the Plan. If the Company cannot ascertain the
whereabouts of any person to whom a payment is due under the Plan within three years from the date
such payment is due, such payment shall be cancelled on the records of the Plan and the amount
thereof forfeited to the Company.

5.4 Administrative Delays.

     The Committee may delay any payment from this Plan for as short a period as is
administratively necessary. For example, a delay may be imposed upon all payments from the Plan
when there is a change of recordkeeper, and a delay may be imposed on payments to any recipient
until they have provided the information needed for tax withholding and tax reporting, as well as
any other information reasonably requested by the Committee.

5.5 409A Noncompliance.

     To the extent that the Company takes any action that causes a violation of Code §409A or fails
to take reasonable actions required to comply with Code §409A, the Company shall pay an additional
amount (the “gross-up”) to the individual(s) who are subject to the penalty tax under Code
§409A(a)(1) that is sufficient to put the individual in the same after-tax position he or she would
have been in had there been no violation of Code §409A. The Company shall not pay a gross-up if
the cause of the violation of Code §409A is the recipient’s failure to take reasonable actions
(such as failing to timely provide the information required for tax withholding or failing to
timely provide other information reasonably requested by the Committee — with the result that the
delay in payment violates Code §409A). Any gross-up will be made as soon as administratively
convenient after the Committee determines the gross-up is owed, and no later than the

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end of the calendar year immediately following the calendar year in which the additional taxes are
remitted. However, if the gross-up is due to a tax audit or litigation addressing the existence or
amount of a tax liability, the gross-up will be paid as soon as administratively convenient after
the litigation or audit is completed, and no later than the end of the calendar year following the
calendar year in which the audit is completed or there is a final and non-appealable settlement or
other resolution of the litigation.

5.6 Gender.

     Any term herein used in the singular shall also include the plural, and the masculine gender
shall also include the feminine gender, and vice versa.

5.7 Statutory References.

     Any reference to a specific section of the Code shall be deemed to refer to that section or to
the appropriate successor section.

5.8 Governing Law.

     The Plan shall be governed by the laws of the State of Texas, ignoring any conflicts-of-law
provisions.

Dated: July 21, 2011

	 	 	 	 	 	 	 	 	 	 	 

	ATTEST:	 	 	 	APACHE CORPORATION	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Cheri L. Peper
	 	 	 	By:
	 	/s/ Margery M. Harris	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 

	 	Cheri L. Peper
	 	 	 	 	 	Margery M. Harris	 	 
	 

	 	Corporate Secretary
	 	 	 	 	 	Senior Vice President, Human Resources	 	 

8Exhibit 10.1

Exhibit 10.1

			
	 	 	 
	
	 	Amendment to Credit Agreement

with Termination of Negative Pledge Agreement and Consent

This agreement is dated as of June 23, 2011, by and between TASER International, Inc. (the
“Borrower”) and JPMorgan Chase Bank, N.A. (together with its successors and assigns the “Bank”).
The provisions of this agreement are effective on the date that this agreement has been executed by
all of the signers and delivered to the Bank (the “Effective Date”).

WHEREAS, the Borrower and the Bank entered into a credit agreement dated June 22, 2004 (as amended,
the “Credit Agreement”); and a Negative Pledge Agreement dated June 22, 2004 (the “Negative Pledge
Agreement”) and

WHEREAS, the Borrower has requested and the Bank has agreed to amend the Credit Agreement as set
forth in this agreement;

NOW, THEREFORE, in mutual consideration of the agreements contained herein and for other good and
valuable consideration, the parties agree as follows:

	1.	 	DEFINED TERMS. Capitalized terms used in this agreement shall have the same meanings
as in the Credit Agreement, unless otherwise defined in this agreement.

	2.	 	TERMINATION OF NEGATIVE PLEDGE AGREEMENT. The Negative Pledge Agreement is hereby
terminated, the parties acknowledging that the covenants and events of default in the Credit
Agreement concerning liens, transfers and other
transactions involving Borrower’s properties, continue without modification except as
provided for herein, in accordance with their stated terms.

	3.	 	CONSENT. The Bank agrees that Borrower shall be permitted, notwithstanding the
provisions in sections 5.2.A and 5.2.B of the Credit Agreement, to repurchase its common shares for cash
consideration not to exceed an aggregate amount of $15,000,000.00;
provided however that this consent is conditioned on (a) Borrower’s compliance with
all other terms and conditions of the Credit Agreement, giving effect to such repurchase; and
(b) giving effect to such repurchase, the Borrower shall have a balance of unencumbered cash
(determined in accordance with generally accepted accounting principles, consistently applied)
of not less than $10,000,000.00. The consent provided for in this paragraph shall be in
addition to the consent provided in the Amendment to Credit Agreement dated March 8, 2011.

	4.	 	MODIFICATION OF CREDIT AGREEMENT. The Credit Agreement is hereby amended as follows:

	 	4.1	 	From and after the Effective Date, the following provisions are deleted in
their entirety and reserved: (a) section 1.3, “Borrowing Base"; section 2.4 “Account”;
section 2.9 “Eligible Accounts”; section 2.10 “Eligible Inventory”; section 2.11
“Inventory”; 2.13 “Margined Eligible Accounts”; and section 6.2 “Representations
Regarding Assets.”

 

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	 	4.2	 	From and after the Effective Date, section 2.7 “Applicable Fee” of the Credit
Agreement is hereby amended and restated to read as follows:

	 	2.7	 	“Applicable Fee Rate” means with respect to any standby letter of credit fee
or Non-Usage Fee, as the case may be, the rate per annum set forth below opposite the
applicable Leverage Ratio (hereinafter defined in Section 5. 2 (J).

	 	 	 	 	 	 	 	 	 
	 	 	Applicable Fee Rate	 
	Leverage Ratio	 	Standby LOC Fee	 	 	Non-Usage Fee	 
	Greater than 0.75 to 1.00
	 	 	1.75	%	 	 	0.20	%
	Less than or equal to 0.75 to 1.00 but
greater than 0.25 to 1.00
	 	 	1.50	%	 	 	0.15	%
	Less than or equal to 0.25 to 1.00
	 	 	1.25	%	 	 	0.10	%

	 	4.3	 	From and after the Effective Date, section 4.5 “Financial Reports” letters C.
and D. of the Credit Agreement are hereby deleted in their entirety.

	 
	 	4.4	 	From and after the Effective Date, section 5.2 letter C. of the Credit
Agreement is hereby amended and restated to read as follows:

	 
	 		 	C. Debt. Incur, contract for, assume, or permit to remain outstanding, indebtedness for
borrowed money, installment obligations, or obligations under capital leases or
operating leases, other than (1) unsecured trade debt incurred in the ordinary course
of business, (2) indebtedness owing to the Bank, (3) indebtedness reflected in its
latest financial statement furnished to the Bank prior to execution of this
agreement and that is not to be paid with proceeds of borrowings under the Credit
Facilities, (4) indebtedness outstanding as of the date hereof that has been disclosed
to the Bank in writing and that is not to be paid with proceeds of borrowings under the
Credit Facilities, and (5) additional indebtedness for borrowed money, installment
obligations and obligations under capital leases or operating leases not to exceed
$2,000,000.00 in the aggregate.

	 	4.5	 	From and after the Effective Date, section 5.2 letter E. of the Credit
Agreement is hereby amended and restated to read as follows:

	 
	 		 	E. Liens. Create or permit to exist any Lien on any of its Property except: existing
Liens known to and approved by the Bank; Liens to the Bank; Liens incurred in the
ordinary course of business securing current non-delinquent liabilities for taxes,
worker’s compensation, unemployment insurance, social security and pension liabilities;
and Liens on domain names, patents, trademarks, and noncompete agreements.

 

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	5.	 	RATIFICATION. The Borrower ratifies and reaffirms the Credit Agreement and the Credit
Agreement shall remain in full force and effect as modified by this agreement.

	6.	 	BORROWER REPRESENTATIONS AND WARRANTIES. The Borrower represents and warrants that (a)
the representations and warranties contained in the Credit Agreement are true and correct in
all material respects as of the date of this agreement, (b) no condition, event, act or
omission which could constitute a default or an event of default under the Credit Agreement,
as modified by this agreement, or any other Related Document exists, and (c) no condition,
event, act or omission has occurred and is continuing that with the giving of notice, or the
passage of time or both, would constitute a default or an event of default under the Credit
Agreement, as modified by this agreement, or any other Related Document.

	7.	 	FEES AND EXPENSES. The Borrower agrees to pay all fees and out-of-pocket disbursements
incurred by the Bank in connection with this agreement, including legal fees incurred by the
Bank in the preparation, consummation, administration and enforcement of this agreement.

	8.	 	EXECUTION AND DELIVERY. This agreement shall become effective only after it is fully
executed by the Borrower and the Bank, and the Bank shall have received from the Borrower the
following documents: Note Modification Agreement.

	9.	 	ACKNOWLEDGEMENTS OF BORROWER / RELEASE. The Borrower acknowledges that as of the date
of this agreement it has no offsets with respect to all amounts owed by the Borrower to the
Bank arising under or related to the Credit Agreement, as modified by this agreement, or any
other Related Document on or prior to the date of this agreement. The Borrower fully, finally
and forever releases and discharges the Bank, its successors and assigns and their respective
directors, officers, employees, agents and representatives (each a “Bank Party”) from any and
all claims, causes of action, debts, demands and liabilities, of whatever kind or nature, in
law or in equity, of the Borrower, whether now known or unknown to the Borrower, which may
have arisen in connection with the Credit Agreement or the actions or omissions of any Bank
Party related to the Credit Agreement on or prior to the date hereof. The Borrower
acknowledges and agrees that this agreement is limited to the terms outlined above, and shall
not be construed as an agreement to change any other terms or provisions of the Credit
Agreement. This agreement shall not establish a
course of dealing or be construed as evidence of any willingness on the Bank’s part to grant
other or future agreements, should any be requested.

	10.	 	INTEGRATION, ENTIRE AGREEMENT, CHANGE, DISCHARGE, TERMINATION, OR WAIVER. The Credit
Agreement, as modified by this agreement, and the other Related Documents contain the complete
understanding and agreement of the Borrower and the Bank in respect of the Credit Facilities
and supersede all prior understandings and negotiations. If any one or more of the obligations
of the Borrower under this agreement or the Credit Agreement, as amended by this agreement, is
invalid, illegal or unenforceable in any jurisdiction, the validity, legality and
enforceability of the remaining obligations of the Borrower shall not in any way be affected
or impaired, and the invalidity, illegality or unenforceability in one jurisdiction shall not
affect the validity, legality or enforceability of the obligations of the Borrower under this
agreement, the Credit Agreement, as modified by this agreement, or any other Related Document
in any other jurisdiction. No provision of the Credit Agreement, as modified by this
agreement, or the other Related Documents, may be changed, discharged, supplemented,
terminated, or waived except in a writing signed by the party against whom it is being
enforced.

 

37

 

	11.	 	Governing Law and Venue. This agreement shall be governed by and construed in
accordance with the laws of the State of Arizona (without giving effect to its laws of
conflicts). The Borrower agrees that any legal action or proceeding with respect to any of its
obligations under this agreement may be brought by the Bank in any state or federal court
located in the State of Arizona, as the Bank in its sole discretion may elect. By the
execution and delivery of this agreement, the Borrower submits to and accepts, for itself and
in respect of its property, generally and unconditionally, the non-exclusive jurisdiction of
those courts. The Borrower waives any claim that the State of Arizona is not a convenient
forum or the proper venue for any such suit, action or proceeding.

	12.	 	NOT A NOVATION. This agreement is a modification only and not a novation. Except as
expressly modified by this agreement, the Credit Agreement, any other Related Documents, and
all the terms and conditions thereof, shall be and remain in full force and effect with the
changes herein deemed to be incorporated therein. This agreement is to be considered attached
to the Credit Agreement and made a part thereof. This agreement shall not release or affect
the liability of any guarantor of any promissory note or credit facility executed in reference
to the Credit Agreement or release any owner of collateral granted as security for the Credit
Agreement. The validity, priority and enforceability of the Credit Agreement shall not be
impaired hereby. To the extent that any provision of this agreement conflicts with any term or
condition set forth in the Credit Agreement, or any other Related Documents, the provisions of
this agreement shall supersede and control. The Bank expressly reserves all rights against all
parties to the Credit Agreement and the other Related Documents.

	13.	 	TIME IS OF THE ESSENCE. Time is of the essence under this agreement and in the
performance of every term, covenant and obligation contained herein.

	 	 	 	 	 	 	 

	 	 	Borrower:
	 
	 	 	 	 	 	 
	 	 	TASER International, Inc.
	 
	 	 	 	 	 	 
	 	 	By:	 	/s/ Daniel M Behrendt
	 	 	 	 	 
	 

	 	 	 	DANIEL M BEHRENDT
	 	CFO
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Printed Name
	 	Title
	 
	 	 	 	 	 	 
	 	 	Date Signed: June 28, 2011
	 
	 	 	 	 	 	 
	 	 	Bank:
	 
	 	 	 	 	 	 
	 	 	JPMorgan Chase Bank, N.A.
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Printed Name
	 	Title
	 
	 	 	 	 	 	 
	 	 	Date Signed:
                                       

 

38

 

			
	 	 	 
	
	 	Note Modification Agreement

This agreement is dated as of June 23, 2011 (the “Agreement Date”), by and between TASER
International, Inc. (the “Borrower”) and JPMorgan Chase Bank, N.A. (together with its successors
and assigns, the “Bank”). The provisions of this agreement are effective on the date that this
agreement has been executed by all of the signers and delivered to the Bank (the “Effective Date”).

WHEREAS, the Borrower executed a Line of Credit Note dated as of June 4, 2010 in the original
principal amount of Ten Million and 00/100 Dollars ($10,000,000.00), (as same may have been amended
or modified from time to time, the “Note”) as evidence of an extension of credit from the Bank to
the Borrower, which Note has at all times been, and is now, continuously and without interruption
outstanding in favor of the Bank; and,

WHEREAS, the Borrower has requested and the Bank has agreed that the Note be modified to the
limited extent as hereinafter set forth in this agreement;

NOW THEREFORE, in mutual consideration of the agreements contained herein and for other good and
valuable consideration, the parties agree as follows:

1. ACCURACY OF RECITALS. The Borrower acknowledges the accuracy of the Recitals stated
above.

2. DEFINITIONS. Capitalized terms used in this agreement shall have the same meanings as
in the Note, unless otherwise defined in this agreement.

3. MODIFICATION OF NOTE.

 

39

 

3.1 From and after the Effective Date, the provision in the Note captioned “Promise to
Pay” is hereby amended as follows: The date on which the entire balance of unpaid principal plus
accrued interest shall be due and payable immediately is hereby changed from June 30, 2011 to June
30, 2013.

3.2 From and after the Effective Date, the provision in the Note captioned “Applicable
Margin” is hereby amended as follows:

“Applicable Margin” means with respect to any CB Floating Rate Advance or LIBOR Rate Advance,
as the case may be, the rate per annum set forth below for such Advance and opposite the applicable
Leverage Ratio. Leverage Ratio is defined in the Credit Agreement.

	 	 	 	 	 	 	 	 	 
	 	 	Applicable Margin	 
	 	 	CB Floating Rate	 	 	 	 
	Leverage Ratio	 	Advance	 	 	LIBOR Rate Advance	 
	Greater than 0.75 to 1.00
	 	minus 0.50%	 	 	1.75	%
	Less than or equal to 0.75 to
1.00 but greater than 0.25 to
1.00
	 	minus 0.75%	 	 	1.50	%
	Less than or equal to 0.25 to 1.00
	 	minus 1.00%	 	 	1.25	%

The Applicable Margin shall, in each case, be determined and adjusted quarterly on the first day of
the month after the date of delivery of the quarterly and annual financial statements required by
the Credit Agreement, provided, however, that if such financial statements are not delivered within
two Business Days after the required date (each, an “Interest Determination Date”), the Applicable
Margin shall increase to the maximum percentage amount set forth in the table above from the date
such financial statements were required to be delivered to the Bank until received by the Bank. The
Applicable Margin shall be effective from an Interest Determination Date until the next Interest
Determination Date. Such determinations by the Bank shall be conclusive absent manifest error. The
initial Applicable Margin for CB Floating Rate Advances is minus 1.00% and for LIBOR Rate Advances
is 1.25%.

3.3 From and after the Effective Date, the provision in the Note captioned “Principal
Payments” is hereby amended as follows:

Principal Payments. All outstanding principal and interest is due and payable in full on June
30, 2013, which is defined herein as the “Principal Payment Date”.

3.4 Each of the Related Documents is modified to provide that it shall be a default
or an event of default thereunder if the Borrower shall fail to comply with any of the covenants of
the Borrower herein or if any representation or warranty by the Borrower herein or by any guarantor
in any Related Documents is materially incomplete, incorrect, or misleading as of the date hereof.
As used in this agreement, the “Related Documents” shall include the Note and all applications for
letters of credit, loan agreements, credit agreements, reimbursement agreements, security
agreements, mortgages, deeds of trust, pledge agreements, assignments, guaranties, or any other
instrument or document executed in connection with the Note or in connection with any other
obligations of the Borrower to the Bank.

3.5 Each reference in the Related Documents to any of the Related Documents shall be
a reference to such document as modified by this agreement.

 

40

 

4. RATIFICATION OF RELATED DOCUMENTS AND COLLATERAL. The Related Documents are ratified
and reaffirmed by the Borrower and shall remain in full force and effect as they may be modified by
this agreement. All property described as security in the Related Documents shall remain as
security for the Note, as modified by this agreement, and the Liabilities under the other Related
Documents.

5. BORROWER REPRESENTATIONS AND WARRANTIES. The Borrower represents and warrants to the
Bank that each of the representations and warranties made in the Note and the other Related
Documents and each of the following representations and warranties are and will remain, true and
correct until the later of maturity or the date on which all Liabilities evidenced by the Note are
paid in full:

5.1 No default, event of default or event that would constitute a default or event
of default but for the giving of notice, the lapse of time or both, has occurred and is continuing
under any provision of the Note, as modified by this agreement, or any other Related Document.

5.2 No event has occurred which may in any one case or in the aggregate materially
and adversely affect the financial condition, properties, business, affairs, prospects or
operations of the Borrower or any guarantor or any subsidiary of the Borrower.

5.3 The Borrower has no defenses or counterclaims, offsets or adverse claims,
demands or actions of any kind, personal or otherwise, that it could assert with respect to the
Note or any other Liabilities.

5.4 The Note, as modified by this agreement, and the other Related Documents are the
legal, valid, and binding obligations of the Borrower and the other parties, enforceable against
the Borrower and other parties in accordance with their terms, except as may be limited by
bankruptcy, insolvency or other laws affecting the enforcement of creditors’ rights generally and
by general principles of equity.

5.5 The Borrower, other than any Borrower who is a natural person, is validly
existing under the laws of the State of its formation or organization. The Borrower has the
requisite power and authority to execute and deliver this agreement and to perform the obligations
described in the Related Documents as modified herein. The execution and delivery of this agreement
and the performance of the obligations described in the Related Documents as modified herein
have been duly authorized by all requisite action by or on behalf of the Borrower. This agreement
has been duly executed and delivered by or on behalf of the Borrower.

6. BORROWER COVENANTS. The Borrower covenants with the Bank:

6.1 The Borrower shall execute, deliver, and provide to the Bank such additional
agreements, documents, and instruments as reasonably required by the Bank to effectuate the intent
of this agreement.

 

41

 

6.2 The Borrower fully, finally, and forever releases and discharges the Bank, its
successors, and assigns and their respective directors, officers, employees, agents, and
representatives (each a “Bank Party”) from any and all causes of action, claims, debts, demands,
and liabilities, of whatever kind or nature, in law or equity, of the Borrower, whether now known
or unknown to the Borrower, (i) in respect of the loan evidenced by the Note and the Related
Documents, or of the actions or omissions of any Bank Party in any manner related to the loan
evidenced by the Note or the Related Documents and (ii) arising from events occurring prior to the
date of this agreement.

6.3 To the extent not prohibited by applicable law, the Borrower shall pay to the
Bank:

6.3.1 All the internal and external costs and expenses incurred (or charged by
internal allocation) by the Bank in connection with this agreement (including, without limitation,
inside and outside attorneys, appraisal, appraisal review, processing, title, filing, and recording
costs, expenses, and fees).

7. EXECUTION AND DELIVERY OF AGREEMENT BY THE BANK. The Bank shall not be bound by this
agreement until (i) the Bank has executed this agreement and (ii) the Borrower performed all of the
obligations of the Borrower under this agreement to be performed contemporaneously with the
execution and delivery of this agreement.

8. INTEGRATION, ENTIRE AGREEMENT, CHANGE, DISCHARGE, TERMINATION, OR WAIVER. The Note, as
modified by this agreement, and the other Related Documents contain the complete understanding and
agreement of the Borrower and the Bank in respect of any Liabilities evidenced by the Note and
supersede all prior understandings, and negotiations. If any one or more of the obligations of the
Borrower under this agreement or the Note, as modified by this Agreement, is invalid, illegal or
unenforceable in any jurisdiction, the validity, legality and enforceability of the remaining
obligations of the Borrower shall not in any way be affected or impaired, and the invalidity,
illegality or unenforceability in one jurisdiction shall not affect the validity, legality or
enforceability of the obligations of the Borrower under this agreement, the Note as modified by
this agreement and the other Related Documents in any other jurisdiction. No provision of the Note,
as modified by this agreement, or any other Related Documents may be changed, discharged,
supplemented, terminated, or waived except in a writing signed by the party against whom it is
being enforced.

9. GOVERNING LAW AND VENUE. This agreement shall be governed by and construed in accordance
with the laws of the State of Arizona (without giving effect to its laws of conflicts). The
Borrower agrees that any legal action or proceeding with respect to any of its obligations under
the Note or this agreement may be brought by the Bank in any state or federal court located in the
State of Arizona, as the Bank in its sole discretion may elect. By the execution and delivery of
this agreement, the Borrower submits to and accepts, for itself and in respect of its property,
generally and unconditionally, the non-exclusive jurisdiction of those courts. The Borrower waives
any claim that the State of Arizona is not a convenient forum or the proper venue for any such
suit, action or proceeding. This agreement binds the Borrower and its successors, and benefits the
Bank, its successors and assigns. The Borrower shall not, however, have the right to assign the
Borrower’s rights under this agreement or any interest therein, without the prior written consent
of the Bank.

10. COUNTERPART EXECUTION. This agreement may be executed in multiple counterparts, each of
which, when so executed, shall be deemed an original, but all such counterparts, taken together,
shall constitute one and the same agreement.

11. NOT A NOVATION. This agreement is a modification only and not a novation. In addition
to all amounts hereafter due under the Note, as modified by this agreement, and the other Related
Documents, all accrued interest evidenced by the Note being modified by this agreement and all
accrued amounts due and payable under the Related Documents shall continue to be due and payable
until paid. Except for the modification(s) set forth in this agreement, the Note, the other Related
Documents and all the terms and conditions thereof, shall be and remain in full force and effect
with the changes herein deemed to be incorporated therein. This agreement is to be considered
attached to the Note and made a part thereof. This agreement shall not release or affect the
liability of any guarantor, surety or endorser of the Note or release any owner of collateral
securing the Note. The validity, priority and enforceability of the Note shall not be impaired
hereby. References to the Related Documents and to other agreements shall not affect or impair the
absolute and unconditional obligation of the Borrower to pay the principal and interest on the Note
when due. The Bank reserves all rights against all parties to the Note and the other Related
Documents.

 

42

 

12. TIME IS OF THE ESSENCE. Time is of the essence under this agreement and in the
performance of every term, covenant and obligation contained herein.

	 	 	 	 	 

	 

	 	 	 	Borrower:
	 
	 	 	 	 
	Address:

	 	17800 North 85th Street
	 	TASER International, Inc.
	 
	 	 	 	 
	 

	 	Scottsdale, AZ 85255	 	 

	 	 	 	 	 	 	 

	 	 	By:	 	/s/ Daniel M Behrendt

	 	 	 	 	 
	 

	 	 	 	DANIEL M BEHRENDT
	 	CFO
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Printed Name
	 	Title
	 
	 	 	 	 	 	 
	 	 	Date Signed: June 28, 2011	 	 

SIGNATURE REQUIRED ON THE FOLLOWING PAGE

 

43

 

BANK’S ACCEPTANCE

The foregoing agreement is hereby agreed to and acknowledged.

	 	 	 	 	 	 	 

	 	 	Bank:	 	 
	 
	 	 	 	 	 	 
	 	 	JPMorgan Chase Bank, N.A.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Printed Name
	 	Title
	 
	 	 	 	 	 	 
	 	 	Date	 	 
	 	 	Signed:
                 
                  
                  
   	 	 

 

44

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