Document:

exv10w8w5

Exhibit 10.8.5

FOURTH AMENDMENT

TO THE

COLT DEFENSE LLC

SALARIED EMPLOYEES’ RETIREMENT INCOME PLAN

     WHEREAS, Colt Defense LLC (the “Employer”) sponsors a defined benefit pension plan known as
the Colt Defense LLC Salaried Employees’ Retirement Income Plan (the “Plan”); and

     WHEREAS, under the terms of the Plan, the Employer has the ability to amend the Plan; and

     WHEREAS, the Internal Revenue Service has issued final Regulations under Code Section 415 of
the Internal Revenue Code (the “Code”); and

     WHEREAS, effective as of the first day of the limitation year beginning on or after July 1,
2007, the Employer desires to amend the Plan to incorporate such Regulations into the Plan;

     NOW, THEREFORE, effective as of January 1, 2008, the Employer hereby amends the Plan to
provide as follows:

     1. Section 1.38 of Article I, the Plan definition of “Section 415 Compensation”, is amended in
its entirety as follows:

     “1.38 SECTION 415 COMPENSATION

The term Section 415 Compensation means a Participant’s wages as defined in Code Section 3401 (a)
and all other payments of compensation by the Employer (in the course of the Employer’s trade or
business) for a twelve (12) month period for which the Employer is required to furnish the
Participant a written statement under Code Sections 6041(d), 6051(a)(3) and 6052. For Plan
purposes, the “limitation year” shall be the Plan Year, and “Section 415 Compensation” shall be
determined without regard to any rules under Code Section 3401 (a) that limit the remuneration
included in wages based on the nature or location of the employment or the services performed (such
as the exception for agricultural labor in Code Section 3401(a)(2)), and is further subject to the
following:

	 	(a)	 	Effective with respect to Plan Years beginning after December 31, 1997, “Section 415
Compensation” shall include amounts excluded from income pursuant to the provisions of Code
Sections 125, 402(g)(3), 403(b) or 457.
	 
	 	(b)	 	For Plan Years beginning on and after January 1, 2001, “Section 415 Compensation” shall
include elective amounts that are not includible in the gross income of the Employee by reason of
Code section 132(f)(4). This amendment shall also apply to the definitions of “Section 415
Compensation” applied within in the definition of Highly Compensated Employee in Section 1.21, the
definition of Key Employee in Section 10.4, the definition of Leased Employee in Section 1.23, the
required minimum benefit for top-heavy purposes in Section 10.2, and the maximum Plan accruals
under Code Section 415 described in Section 6.1.

 

 

	 	(c)	 	A Participant’s “Section 415 Compensation” is further defined as compensation within the
meaning of Treasury regulations sections 1.415(c)-2(b) and (c), subject to the following rules:

	 	(1)	 	Compensation shall be included in a Plan Year only if actually paid or made available
during such Plan Year, but also shall include amounts earned but not paid during the Plan
Year solely because of the timing of pay periods and pay dates, provided the amounts are
paid during the first few weeks of the next Plan Year, the amounts are included on a
uniform and consistent basis with respect to all similarly situated employees, and no
compensation is included in more than one Plan Year.
	 
	 	(2)	 	Effective with the first Plan Year beginning on or after July 1, 2007, compensation for
a Plan Year shall also include compensation paid no later than the later of 2-1/2 months
after a Participant’s severance from employment with the Employer or the end of the Plan
Year that includes the date of the Participant’s severance from employment. In such
instances, compensation shall be included only if the payment is regular compensation for
services during the Participant’s regular working hours, or compensation for services
outside the Participant’s regular working hours (such as overtime or shift differential),
commissions, bonuses, or other similar payments, and absent a severance from employment, the
payments would have been paid to the Participant while the Participant continued in
employment with the Employer. In addition, compensation shall include vacation and sick
leave payouts that are paid no later than the later of 2-1/2 months after a Participant’s
severance from employment with the Employer or the end of the Plan Year that includes the
date of the Participant’s severance from employment.
	 
	 	(3)	 	Any payment not described in subparagraph (c)(i) or (2) above will not be included in
compensation if paid after severance from employment, even if paid by the later of 2-1/2
months after a Participant’s severance from employment with the Employer or the end of the
Plan Year that includes the date of the Participant’s severance from employment.”

     2. Section 6.1 of Article VI, entitled “Maximum Annual Benefit”, is amended in its entirety as
follows:

     “6.1 MAXIMUM ANNUAL BENEFIT

     Notwithstanding any other provisions of the Plan, the aggregate annual retirement benefit that
may be paid to a Retired Participant may not at any time within any limitation year exceed the
limitations contained in Section 415 of the Code. For Plan purposes, the “limitation year” shall be
the Plan Year, Plan benefits shall accrue and shall be paid in accordance with Section 415 of the
Code and applicable Treasury regulations issued thereunder, the requirements of which are herein
incorporated by reference to the extent not specifically provided for in this Section 6,1.

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	 	(a)	 	The maximum amount permitted under the Plan, and under all other defined benefit plans (as
defined in Section 414(j) of the Code) maintained by the Employer or any controlled group member
that must be aggregated with the Plan, payable as an annual benefit for the life of the Participant
shall not exceed the lesser of:

	 	(i)	 	$160,000 (as adjusted effective January 1 of each year under Section 415(d) of the
Code in such mariner as the Secretary shall prescribe) or
	 
	 	(ii)	 	an amount equal to the Participant’s average annual compensation in his highest
three-year consecutive period (as defined in Section 415(b) of the Code and the applicable
Treasury regulations issued thereunder). The term “compensation” as used in this Section 6.1
is defined as “Section 415 Compensation” under Section 1.38 of the Plan.

	 	 	 	If the Participant’s benefit accrual would exceed the maximum amount permitted as described
in the preceding sentence, the Participant’s benefit shall be limited or the rate of accrual
reduced. However, the foregoing limitations shall not reduce the Participant’s accrued
benefit under all defined benefit plans of the Employer or a predecessor employer to be less
than the accrued benefit under all defined benefit plans of the Employer or a predecessor
employer as of the last day of the Plan Year before the Plan Year beginning in 2006, under
provisions of such plans in effect before April 5, 2007. Effective January 1, 2002, benefit
increases resulting from the increase in the limitations of Section 415(b) of the Code shall
be provided to all employees participating in the Plan who have one hour of Service on or
after the first day of the first limitation year ending after January 1, 2002.
	 
	 	(b)	 	In the case of a Participant who has not completed at least 10 years of participation in the
Plan, the maximum amount of aggregate annual benefits in subparagraph 6.1(a)(i) above shall be
multiplied by a fraction, the numerator of which is the number of years (or part thereof) of
participation in the Plan the Participant has completed (but not less than one) and the denominator
of which is 10. In the case of a Participant who has not completed at least 10 years of service
with the Employer, the maximum amount of aggregate annual benefits in subparagraph 6.1(a)(ii) above
shall be multiplied by a fraction, the numerator of which is the number of years (or part thereof)
of service with the Employer the Plan the Participant has completed (but not less than one) and the
denominator of which is 10.
	 
	 	(c)	 	Effective for distributions in Plan Years beginning after January 1, 2003, the determination of
the actuarially equivalent form of annual benefit other than a straight life annuity shall be made
in accordance with subparagraph (i) or (ii) below. Notwithstanding any provision of this Section
6.1 to the contrary, all such adjustments shall be made as required under the Economic Growth and
Tax Relief Reconciliation Act of 2001, the Pension Funding Equity Act of 2004, the Pension
Protection Act of 2006, and any guidance published in the Internal Revenue Bulletin.

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	 	(i)	 	The actuarial equivalent shall be determined under this subparagraph (i) for any benefit
in the form of a nondecreasing annuity (other than a straight life annuity) payable for a
period of not less than the life of the Participant (or, in the case of a qualified
preretirement survivor annuity, the life of the surviving Spouse), or a benefit form that
decreases during the life of the Participant merely because of the death of the survivor
annuitant (but only if the reduction is not below 50% of the benefit payable before the death
of the survivor annuitant), or the cessation or reduction of Social Security supplements or
qualified disability payments (as defined in Section 401(a)(11) of the Code.

	 	(A)	 	For Plan Years beginning before July 1, 2007, the actuarially equivalent straight
life annuity is equal to the annual amount of the straight life annuity commencing at
the same annuity starting date that has the same actuarial present value as the
Participant’s form of benefit, computed using whichever of the following produces the
greater amount: (I) the interest rate and mortality table used by the Plan for
adjusting benefits in the same form, and (II) a 5% interest rate assumption and the
mortality table prescribed by the Internal Revenue Service Revenue Ruling 2001-62 (or
such other mortality table as may be prescribed by the Internal Revenue Service) for
that annuity starting date.
	 
	 	(B)	 	For Plan Years beginning on or after July 1, 2007, the actuarially equivalent
straight life annuity is equal to the greater of: (I) the annual amount of the
straight life annuity (if any) payable to the Participant under the Plan commencing at
the same annuity starting date as the Participant’s form of benefit, and (II) the
annual amount of the straight life annuity commencing at the same annuity starting
date that has the same actuarial present value as the Participant’s form of benefit,
computed using a 5% interest rate assumption and the mortality table (B) prescribed by
Internal revenue service Revenue Ruling 2001-62 (or such other mortality table as may
be prescribed by the Internal Revenue Service) for that annuity starting date.

	 	(ii)	 	In determining the actuarial equivalent of a form of benefit other than a benefit
form described in subparagraph 6.1(c)(i) above:

	 	(A)	 	For an annuity starting date in 2004 or 2005, the actuarially equivalent straight
life annuity is equal to the annual amount of the straight live annuity commencing at
the same annuity starting date that has the same actuarial present value as the
Participant’s form of benefit, computed using whichever of the following produces the
greater annual amount: (I) the interest rate and mortality table used by the Plan for
adjusting benefits in the same form; and (II) a 5.5% interest rate assumption and the
mortality table prescribed by

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	 	 	 	Internal Revenue Service Revenue Ruling 2001-62 (or such other mortality table
as may be prescribed by the Internal Revenue Service). However, if the annuity
starting date of the Participant is in 2004, this subparagraph shall not cause
the amount payable under the Participant’s form of benefit to be less than the
amount calculated under the Plan, taking into account the limitations of this
Section 6.1, except that the actuarially equivalent straight life annuity is
equal to the annual amount of the straight life annuity commencing at the same
annuity starting date that has the same actuarial present value as the
Participant’s form of benefit, computed using whichever of the following
produces the greatest annual amount: (I) the interest rate and mortality table
used by the Plan for adjusting benefits in the same form; (II) the applicable
interest rate used by the Plan and the mortality table prescribed by Internal
Revenue Ruling 2001-62 (or such other mortality table as may be prescribed by
the Internal Revenue Service); and (III) the applicable interest rate (as in
effect on the last day of the last Plan Year beginning before 2004, under
provisions of the Plan then in effect) and the morality table prescribed by
Internal Revenue Service Revenue Ruling 2001-62 (or such other mortality table
as may be prescribed by the Internal Revenue Service).
	 
	 	(B)	 	For an annuity stalling date in a Plan Year beginning after 2005, the actuarially
equivalent straight life annuity is equal to the annual amount of straight life annuity
commencing at the same annuity starting date that has the same actuarial present value
as the Participant’s form a benefit, computed using whichever of the following produces
the greatest annual amount; (I) the interest rate and mortality table used by the Plan
for adjusting benefits in the same form; (II) a 5.5% interest rate assumption and the
mortality table prescribed by Internal Revenue Service Revenue Ruling 2001-62 (or such
other mortality table as may be prescribed by the Internal Revenue Service), and (III)
the interest rate used by internal Revenue Service Revenue Ruling 2006-62 (or such
other mortality table as maybe prescribed by the Internal Revenue Service), divided by
1.05.

	 	(d)	 	If a Participant’s annuity starting date is either before the date the Participant attains age
62 or after the date the Participant attains age 65, the maximum amount of aggregate annual
benefits in subparagraph 6.1(a)(i) shall be adjusted according to this subparagraph (d).
Notwithstanding any provision of this Section 6.1 to the contrary, all such adjustments shall be
made as required under the Economic Growth and Tax Relief Reconciliation Act of 2001, the Pension
Funding Equity Act of 2004, the Pension Protection Act of 2006, and any guidance published in the
Internal Revenue Bulletin.

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	 	(i)	 	If the Participant’s annuity starting date is before age 62 or after age 65 and occurs in
a Plan Year beginning before July 1, 2007, the maximum amount in subparagraph 6.1(a)(i) shall
be adjusted so that it is the actuarial equivalent of said amount (adjusted under
subparagraph 6.1(b) above for years of participation less than 10, if required), with the
actuarial equivalent computed using whichever of the following produces the smaller annual
amount: (A) the interest rate and mortality table used by the Plan, and (B) a 5% interest
rate and the mortality table prescribed by Internal Revenue Service Revenue Ruling 2001-62
(or such other mortality table as may be prescribed by the Internal Revenue Service).
	 
	 	(ii)	 	If the Participant’s annuity starting date occurs before age 62 and in a Plan Year
beginning on or after July 1, 2007, the maximum amount in subparagraph 6.1(a)(i) shall be
adjusted so that it is the lesser of (A) the actuarial equivalent of said amount (adjusted
under subparagraph 6.1(b) above for years of participation less than 10, if required), with
the actuarial equivalent computed using a 5% interest rate and the mortality table prescribed
by Internal Revenue Service Revenue Ruling 2001-62 (or such other mortality table as may be
prescribed by the Internal Revenue Service) and (B) the maximum amount in subparagraph
6.1(a)(i) (adjusted under subparagraph 6.1(b) above for years of participation less than 10,
if required) multiplied by the ratio of the annual amount of the Participant’s straight life
annuity under the Plan at the Participant’s annuity starting date to the annual amount of the
immediately commencing straight life annuity under the Plan at age 62, both determined
without applying the limitation of this Section 6.1.
	 
	 	(iii)	 	If the Participant’s annuity starting date occurs after age 65 and in a Plan Year
beginning on or after July 1, 2007, the maximum dollar limitation at the Participant’s
annuity starting date shall be the lesser of (A) the actuarial equivalent of said amount
(adjusted under subparagraph 6.1(b) above for years of participation less than 10, if
required), with the actuarial equivalent computed using a 5% interest rate and the mortality
table prescribed in Internal Revenue Service Revenue Ruling 2001-62 (or such other mortality
table as may be prescribed by the Internal Revenue Service) and (B) the maximum amount in
subparagraph 6.1(a)(i) (adjusted under subparagraph 6.1(b) above for years of participation
less than 10, if required), multiplied by the ratio of the annual amount of the adjusted
immediately commencing straight life annuity under the Plan at the Participant’s annuity
starting date to the annual amount of the adjusted immediately commencing straight life
annuity under the Plan at age 65, both determined without applying the limitations of this
Section 6.1. For this purpose, the adjusted immediately commencing straight life annuity
under the Plan at the Participant’s annuity starting date is the annual amount of such
annuity payable to the Participant, computed disregarding the Participant’s accruals after
age 65 but including actuarial adjustments even if those actuarial adjustments are used to
offset accruals; and the adjusted

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	 	 	 	immediately commencing straight life annuity under the Plan at age 65 is the annual
amount of such annuity that would be payable under the Plan to a hypothetical
Participant who is age 65 and has the same accrued benefit as the Participant.
	 
	 	(iv)	 	Notwithstanding the foregoing, any decrease in the adjusted defined benefit dollar
limitation determined in accordance with this Section 6.1 shall not reflect any mortality
decrement to the extent that benefits will not be forfeited upon the death of the
Participant. If any benefits are forfeited upon death, the full mortality decrement is taken
into account.”

IN WITNESS WHEREOF, the Employer has caused this Amendment to be executed by a duly authorized
person this 7th day of November, 2008.

	 	 	 	 	 	 	 	 	 

	WITNESS	 	 	 	COLT DEFENSE LLC	 	 
	 
	/s/
J. Michael Magouirk

	 	 	 	By:	 	/s/ Carlton S. Chen	 	 
	 

	 	 	 	 	 	 

	 	 
	 

	 	 	 	Title:	 	Secretary	 	 
	 

	 	 	 	 	 	 

	 	 

-7-exv10w8w6

Exhibit
10.8.6

FIFTH AMENDMENT

TO THE

COLT DEFENSE LLC

SALARIED RETIREMENT INCOME PLAN

     WHEREAS, Colt Defense LLC (the “Employer”) sponsors a defined benefit pension plan known as
the Colt Defense LLC Salaried Retirement Income Plan (the “Plan”); and

     WHEREAS, under the terms of the Plan, the Employer has the ability to amend the Plan; and

     WHEREAS, effective January 1, 2009, the Employer desires to add Colt Security LLC as an
Adopting Employer under the Plan;

     NOW, THEREFORE, effective as of January 1, 2009, the Employer hereby amends the Plan to
provide as follows:

     1. Section 1.4 of Article 1, the definition of “Adopting Employer” is amended by replacing the
first sentence of such Section in its entirety with the following two sentences:

“The term Adopting Employer means any business which adopts this Plan with the consent of the
Employer, and in accordance with the terms of Article 12. Effective January 1, 2009, Colt
Security LLC shall be an Adopting Employer under the Plan.”

     2. A new Article 12, entitled “Adopting Employers” is added, as follows:

“ARTICLE 12 — ADOPTING EMPLOYERS

     12.1 ADOPTION BY OTHER EMPLOYERS

     Notwithstanding anything herein to the contrary, with the consent of the Employer, any other
affiliated corporation or entity may adopt this Plan and all of the provisions hereof, and
participate herein and be known as a Adopting Employer, by a properly executed document evidencing
said intent and will of such Adopting Employer.

     12.2 REQUIREMENTS OF ADOPTING EMPLOYERS

	 	(a)	 	Each Adopting Employer shall adopt this Plan solely for the purpose of providing its eligible
Employees and their beneficiaries with the benefits offered hereunder, and the rights and
obligations of said Adopting Employer and its participating employees shall be determined solely
with reference to the Plan. Each Adopting
Employer shall be deemed to adopt any subsequent amendment to the Plan unless, in advance of
such adoption, Adopting Employer notifies Employer of its intention to discontinue
participation in the Plan prior to the adoption of such Amendment.
	 
	 	(b)	 	The transfer of any eligible Employee among the Employer or Adopting Employers shall not
affect such Participant’s rights under the Plan and all past and future

 

 

	 	 	 	service and benefits accrued to, and if he remains in the eligible class of Employees,
accruing in the future to such Participant shall remain to his credit.
	 
	 	(c)	 	Any expenses of the Plan which are to be paid by the Employer with respect to its participating
employees shall be paid by the Adopting Employer with respect to its employees.
	 
	 	(d)	 	Each Adopting Employer shall be deemed to be a part of the Plan; provided, however, that with
respect to all its relations with the Plan Administrator for purposes of the Plan, each Adopting
Employer shall be deemed to have designated irrevocably the Employer as its agent. Unless the
context clearly indicates otherwise, the word “Employer” shall be deemed to include each Adopting
Employer as related to its adoption of the Plan.

     12.3 SEPARATE ACCOUNTING

     All bookkeeping accounts established with respect to the Plan shall, in the discretion of the
Plan Administrator, be maintained separately with respect to eligible Employees of the Adopting
Employer. On the basis of information provided by the Adopting Employer, the Plan Administrator
shall keep separate books and records concerning the affairs of each Adopting Employer hereunder
and as to the accounts and credits of the participating employees of the Adopting Employer.

     12.4 DISCONTINUANCE OT PARTICIPATION

     Any Adopting Employer may prospectively discontinue or revoke its participation in the Plan by
notifying the Employer in advance of such discontinuance, provided that such discontinuance shall
not result in any loss of benefits accrued to participating employees of Adopting Employer as of
the date of such discontinuance.

     12.5 ADMINISTRATOR’S AUTHORITY

     The Plan Administrator shall have the authority to make any and all necessary rules or
regulations, binding upon all Adopting Employers and all Participants, to effectuate the purpose of
the Plan and this Article.

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IN WITNESS WHEREOF, the Employer has caused this Amendment to be executed by a duly authorized
person on this 8th day of December, 2008.

	 	 	 	 	 	 	 	 	 

	WITNESS	 	 	 	COLT DEFENSE LLC	 	 
	 
	 	 	 	 	 	 	 	 
	/s/ J.A. TIPTON

	 	 	 	By:	 	/s/ William M. Keys	 	 
	 

	 	 	 	 	 	 

	 	 
	VP Administration

	 	 	 	Title:	 	President and CEO	 	 
	 

	 	 	 	 	 	 

	 	 

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