Document:

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                                                                   EXHIBIT 10.14

                                  AGREEMENT

PREAMBLE

The manufacturer parties to the Agreement and the Department of the Treasury,
the Department of Housing and Urban Development, and the undersigned state, city
and county parties to the Agreement enter into this Agreement to reduce the
criminal misuse of firearms, combat the illegal acquisition, possession and
trafficking of firearms, reduce the incidence of firearms accidents, and educate
the public on the safe handling and storage of firearms. Furthermore, the
manufacturer parties to the Agreement enter into this Agreement as a
continuation of their efforts to make their firearms as safe as practicable for
their customers and the public. Accordingly, in consideration of the commitments
set forth below:

            1.    The undersigned state, city, and county parties to the
                  Agreement dismiss the manufacturer parties to the Agreement
                  with prejudice from the lawsuits specified in Appendix A
                  subject to any consent orders entered pursuant to paragraph
                  VIII; and

            2.    The undersigned state, city and federal parties to the
                  Agreement agree to refrain from filing suit against the
                  manufacturer parties to the Agreement on an equivalent cause
                  of action.

The parties agree that this Agreement constitutes the full and complete
settlement of any and all claims that were raised or could have been raised in
the subject litigation. The parties agree further that this Agreement does not
constitute an admission of any violation of law, rule or regulation by the
manufacturer parties to the Agreement, or any of their employees. Nothing in
this Agreement shall be construed to be an admission of liability. The adoption
of standards for firearms design and distribution in this Agreement shall not be
construed as an admission by the manufacturer parties to the Agreement that
practices they engaged in prior to the execution of this Agreement were
negligent.

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I.    SAFETY AND DESIGN.

      A. Each firearm make and model sold by each manufacturer party to this
         Agreement shall be tested by ATF or an agreed upon proofing entity
         against the following standards. Existing makes and models shall meet
         these standards within 60 days of execution of this Agreement unless a
         longer period is specified in the standard. New makes and models shall
         not be manufactured and sold after the execution of this Agreement
         unless they conform to these standards.

         1. STANDARDS APPLICABLE TO ALL HANDGUNS:

            a. SECOND "HIDDEN" SERIAL NUMBER. The gun must have both a visible
               serial number on the exterior of the frame or receiver, as well
               as a second serial number hidden on the interior of frame or
               receiver (e.g., under the grips) or visible only with the aid of
               an optical instrument.

            b. EXTERNAL LOCKING DEVICE. As an interim measure, until the
               implementation of I.A.1.c, within 60 days of execution of the
               Agreement, each firearm shall be supplied with an external
               locking device that effectively prevents the operation of the
               firearm when locked.

            c. INTERNAL LOCKING DEVICE. Within 24 months of execution of the
               Agreement, each firearm shall have a built-in, on-board locking
               system, by which the firearm can only be operated with a key or
               combination or other mechanism unique to that gun.

            d. AUTHORIZED USER TECHNOLOGY. The manufacturer parties to this
               Agreement shall each commit two percent of annual firearms sales
               revenues to the development of a technology that recognizes only
               authorized users and permits a gun to be used only by authorized
               persons. Within 36 months of the date of execution of this
               Agreement, this technology shall be incorporated in all new
               firearm designs, with the exception of curios and collectors'
               firearms. This

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               requirement does not apply to existing designs currently in
               production.

               If the eight firearms manufacturers and/or importers with the
               largest United States firearms sales volume agree to incorporate
               authorized user technology in all firearms, the manufacturer
               parties to this Agreement will incorporate authorized user
               technology in all firearms.

            e. CHILD SAFETY. Within 12 months of execution of the Agreement,
               each firearm shall be designed so that it cannot be readily
               operated by a child under the age of 6. Such mechanisms include:
               making the trigger pull resistance at least ten pounds in the
               double action mode; or designing the firing mechanism so that an
               average five year old's hands would be too small to operate the
               gun; or requiring multiple, sequenced actions in order to fire
               the gun.

            f. MINIMUM BARREL LENGTH. Each firearm make and model must have a
               barrel length of at least 3", unless it has an average group
               diameter test result of 1.7" or less at seven yards, 3.9" or less
               at 14 yards, and 6.3" or less at 21 yards. The average group
               diameter test result is the arithmetic mean of the results of
               three separate trials, each performed on a different sample
               firearm of the make and model at issue. For each trial, the
               firearm shall fire five rounds at a target from the specified
               distance and the largest spread in inches between the center of
               any of the holes made in a test target shall be the result of the
               trial.

            g. PERFORMANCE TEST: A sample of each firearm make and model will be
               test fired with "proof cartridges" (cartridges loaded to generate
               excess pressure as set forth in accepted specifications for proof
               cartridges) to ensure the integrity of the material. At least one
               cartridge shall be fired from each chamber. Following this test
               firing, the firearm will be examined for hairline cracks or other
               signs of material failure and will pass this test only if there
               are no hairline cracks or other signs of material failure. Each
               firearm make

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               and model shall also pass the following performance test: the gun
               shall fire 600 rounds, stopping only every 100 rounds to tighten
               any loose screws and to clean the gun (if required by the
               cleaning schedule recommended in the manual), or as needed to
               refill the empty magazine or cylinder to capacity before
               continuing. For any gun that loads other than with a detachable
               magazine, the tester shall pause every 50 rounds for ten minutes.
               The tester shall use the ammunition recommended in the user's
               manual, or if none is recommended, any standard ammunition of the
               correct caliber in new condition. A gun shall pass this test if
               it fires the first 20 rounds without a malfunction and the full
               600 rounds with no more than 6 malfunctions and without any crack
               or breakage of an operating part of the gun that increases the
               danger of injury. Malfunctions caused by failure to clean and
               lubricate, or by defective ammunition, shall not be counted.

            h. DROP TEST. Pass the more rigorous of: (a) the SAAMI Standard drop
               test in effect on the date the firearm is sold; or (b) the
               following test: The gun shall be test-loaded, set such that it is
               ready to fire and dropped onto a steel plate or equivalent
               material of similar hardness from a height of one meter from each
               of the following positions: (1) normal firing position; (2)
               upside down; (3) on the grip; (4) on the muzzle; (5) on either
               side; and (6) on the exposed hammer or striker (or, if no exposed
               hammer or striker, on the rearmost part of the gun). If the gun
               is so designed so that its hammer or striker may be set in other
               positions, it shall be tested with the hammer or striker in each
               such position (but otherwise ready to fire).

         2. ADDITIONAL STANDARDS FOR PISTOLS:

            a. SAFETY DEVICE. The pistol must have a positive manually operated
               safety device as determined by standards relating to imported
               guns promulgated by ATF.

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            b. MINIMUM LENGTH AND HEIGHT STANDARDS. The pistol's combined length
               and height must not be less than 10" with the height being at
               least 4" and the length being at least 6", unless it has an
               average group diameter test result of 1.7" or less at seven
               yards, 3.9" or less at 14 yards, and 6.3" or less at 21 yards.
               The average group diameter test result is the arithmetic mean of
               the results of three separate trials, each performed on a
               different sample firearm of the make and model at issue. For each
               trial, the firearm shall fire five rounds at a target from the
               specified distance and the largest spread in inches between the
               center of any of the holes made in a test target shall be the
               result of the trial.

            c. MAGAZINE DISCONNECTOR. Within 12 months of execution of the
               Agreement, each pistol shall have a magazine disconnector
               available for those customers who desire the feature.

            d. CHAMBER LOAD INDICATOR. Within 12 months of the execution of the
               Agreement, each pistol shall have a chamber load indicator
               painted in a prominent, contrasting color or a feature that
               allows the operator physically to see the round in the chamber.

            e. LARGE CAPACITY MAGAZINES. No pistol make or model designed after
               January 1, 2000 shall be able to accept magazines manufactured
               prior to September 14, 1994, with a greater than 10 round
               capacity, and such models shall not be capable of being easily
               modified to accept such magazines. Nor shall ammunition magazines
               that are able to accept more than 10 rounds be sold by the
               manufacturer parties to this Agreement or their authorized
               dealers and distributors. See Part II.A.1.h, below.

            f. ADDITIONAL SAFETY FEATURES.  Each pistol must have a firing
               pin block or lock.

      B. LAW ENFORCEMENT AND MILITARY EXCEPTION. An exception to a requirement
         of paragraph A may be granted for firearms

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         manufactured or imported for sale to a law enforcement agency or the
         military if the law enforcement agency or military organization
         certifies to the manufacturer party to this Agreement that the
         exception is necessary for official purposes. Where a law enforcement
         agency authorizes or requires its officers to purchase firearms
         individually for official use, an appropriate certification from the
         agency will be permitted to apply to sales to a number of individual
         officers. The manufacturer party to this Agreement shall maintain the
         certification in its records and provide a copy to the Oversight
         Commission. Firearms sold to law enforcement or the military pursuant
         to this exception, which do not comply with the design standards of
         this Agreement, will be accompanied by a statement:

         1. "On [date], [manufacturer parties to this Agreement] and
            [governmental parties to this Agreement] entered into an Agreement
            establishing certain design standards for firearms sold to
            civilians. Pursuant to that Agreement, we are obliged to inform you
            that this firearm does not comply with all of the design standards
            of the Agreement. We are further obliged to request that you not
            resell this firearm to civilians. This statement is not intended to
            suggest that there are any design flaws with this firearm, and you
            remain entitled to dispose of it in any lawful manner."

      C. WARNINGS ABOUT SAFE STORAGE AND HANDLING. Within 6 months of execution
         of this Agreement, manufacturer parties to this Agreement shall include
         in the packaging of each firearm sold a warning on risk of firearms in
         the home and proper home storage. At a minimum, these warnings shall
         state in 14 point type, bold face:

                  "This handgun is not equipped with a device that fully blocks
      use by unauthorized users. More than 200,000 firearms like this one are
      stolen from their owners every year in the United States. In addition,
      there are more than a thousand suicides each year by younger children and
      teenagers who get access to firearms. Hundreds more die from accidental
      discharge. It is likely that many more children sustain serious wounds, or
      inflict such wounds accidentally

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      on others. In order to limit the chance of such misuse, it is imperative
      that you keep this weapon locked in a secure place and take other steps
      necessary to limit the possibility of theft or accident. Failure to take
      reasonable preventative steps may result in innocent lives being lost, and
      in some circumstances may result in your liability for these deaths."

      D. ILLEGAL FIREARMS. The manufacturer parties to this Agreement shall not
         sell firearms that can be readily converted to an illegal firearm, that
         is, a weapon designed in a manner so that with few additional parts
         and/or minimal modifications an owner can convert the firearm to an
         illegal fully automatic weapon; nor shall the firearms be designed so
         that they are resistant to fingerprints.

II.   SALES AND DISTRIBUTION.

In addition to complying with specific terms, the manufacturer parties to this
Agreement will agree for themselves and as part of any distribution or agency
agreement that they, and their authorized distributors and authorized dealers,
including franchisees, shall commit to a standard of conduct to make every
effort to eliminate sales of firearms that might lead to illegal firearm
possession and/or misuse by criminals, unauthorized juveniles, and other
prohibited persons ("suspect firearms sales"). Suspect firearm sales include
sales made to straw purchasers, multiple sales of handguns without reasonable
explanation (excluding sales to FFLs), and sales made to any purchaser without a
completed background check.

As specified in Part II.A.2 below, the manufacturer parties to this Agreement
will take action against dealers and distributors that violate these
requirements if the manufacturers receive actual nonce of such a violation.

      A. AUTHORIZED DISTRIBUTORS AND DEALERS.

         1. The manufacturer parties to this Agreement may sell only to
            authorized distributors and authorized dealers. In order to qualify
            to become an authorized distributor or authorized dealer, the
            distributor or dealer must agree in writing to:

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            a. Possess a valid and current federal firearms license, and all
               other licenses and permits required by local, state or federal
               law, and certify on an manual basis, under penalty of perjury,
               compliance with all local, state and federal firearms laws.

            b. Execute in the presence of the purchaser the following elements
               of all firearms transactions at the premises listed on its
               federal firearms license: completion of the forms and related
               requirements under the Brady Act and the Gun Control Act and
               physical transfer of the firearm.

            c. Where available, carry insurance coverage against liability for
               damage to property and for injury to or death of any person as a
               result of the sale, lease, or transfer or a firearm in amounts
               appropriate to its level of sales, but at a minimum no less than
               $1 million for each incident of damage, injury or death.

            d. Make no sales at gun shows unless all sales by any seller at
               the gun show are conducted only upon completion of a
               background check.

            e. Within 24 months of the date of execution of this Agreement,
               maintain an inventory tracking plan for the products of the
               manufacturer parties to this Agreement that includes at a minimum
               the following elements:

                (1) Electronic recording of the make, model, caliber or gauge,
                    and serial number of all firearms that are acquired no later
                    than one business day after their acquisition and electronic
                    recording of their disposition no later than one business
                    day after their disposition. Monthly backups of these
                    records shall be maintained in a secure container designed
                    to prevent loss by fire, theft, or other mishap.

                (2) All firearms acquired but not yet disposed of must be
                    accounted for through an electronic inventory check

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                    prepared once each month and maintained in a secure
                    location.

                (3) For authorized dealers and franchisees, all ATF Form 4473
                    firearm transaction records shall be retained on the
                    dealer's business premises in a secure container designed to
                    prevent loss by fire, theft, or other mishap.

                (4) If an audit of a distributor's or dealer's inventory reveals
                    any firearms not accounted for, the distributor or dealer
                    shall be subject to sanctions, including termination as an
                    authorized distributor or dealer.

            f. Implement a security plan for securing firearms, including
               firearms in shipment.  The plan must satisfy at least the
               following requirements:

                (1) Display cases shall be locked at all times except when
                    removing a single firearm to show a customer, and customers
                    shall handle firearms only under the direct supervision of
                    an employee;

                (2) All firearms shall be secured, other than during business
                    hours, in a locked fireproof safe or vault in the licensee's
                    business premises or in another secure and locked area; and

                (3) Ammunition shall be stored separately from the firearms
                    and out of reach of the customers.

            g. Require persons under 18 years of age to be accompanied by a
               parent or guardian when they are in portions of the premises
               where firearms or ammunition are stocked or sold.

            h. Not sell ammunition magazines that are able to accept more than
               10 rounds regardless of the date of manufacture, not sell any
               semi automatic assault weapon as defined in 18 U.S.C. 921(a)(30)
               regardless of the date of manufacture, provide safety locks and
               warnings with firearms, as

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               specified in Section I above, and sell only firearms that comport
               with the design criteria of this Agreement.

            i. Provide law enforcement, government regulators conducting
               compliance inspections, and the Oversight Commission, for
               purposes of determining compliance with conditions imposed as a
               result of this Agreement, or for any other authorized purpose,
               full access to any documents related to the acquisition and
               disposition of firearms deemed necessary by one of those parties.

            j. Participate in and comply with all monitoring of firearms
               distribution by manufacturers, ATF or law enforcement.

            k. Maintain an electronic record of all trace requests initiated by
               ATF, and report those trace requests by make, model and serial
               number of firearm, date of trace, and date of sale to the
               manufacturer of the firearm on a monthly basis, unless ATF, for
               investigative reasons, directs the licensee not to report certain
               traces.

            1. Agree to cooperate fully in the oversight mechanism established
               in Section III of this Agreement, including providing access to
               all necessary documents, and to be subject to the jurisdiction of
               the court enforcing this Agreement.

            m. Require all employees to attend annual training developed by
               manufacturers in consultation with ATF and approved by the
               Oversight Commission. The training shall cover at a minimum: the
               law governing firearms transfers by licensees and individuals;
               how to recognize straw purchasers and other attempts to purchase
               firearms illegally; how to recognize indicators that firearms may
               be diverted for later sale or transfer to those not legally
               entitled to purchase them; how to respond to those attempts; and
               the safe handling and storage of firearms. New employees will
               receive training on the above topics, based on materials
               developed for the annual training, before handling or selling

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               firearms and shall attend annual training thereafter. Such
               training may be delivered by electronic medium. Within 12 months
               of the date of execution of this Agreement and annually
               thereafter, the manufacturer parties to this Agreement will
               obtain from all authorized dealers and distributors
               certifications that such training has been completed, with a list
               of the names of all trained employees.

            n. Require all employees to pass a comprehensive written exam, which
               shall be developed by the manufacturers in consultation with ATF
               and approved by the Oversight Commission, on the material covered
               in the training before being allowed to sell or handle firearms.
               Any employee who fails to pass the exam shall be prohibited from
               selling or handling firearms on behalf of the distributor or
               dealer. The annual certification discussed in II.A.1.m, above,
               will include certification that all employees have passed the
               exam.

            o. Not complete any transfer of a firearm prior to receiving notice
               from the NICS that the transferee is not a prohibited person
               under the Gun Control Act.

            p. Verify the validity of a licensee's federal firearms license
               against an ATF database before transferring a firearm to that
               licensee.

            q. Forgo any transfer of a firearm to a licensee if the dealer or
               distributor knows the licensee to be under indictment for
               violations of the Gun Control Act or any violent felony or
               serious drug offense as defined in 18 U.S.C. Section 924(e)(2).

            r. Transfer firearms only:

                (1) To individuals who have demonstrated that they can safely
                    handle and store firearms through completion of a certified
                    firearms safety training course or by having passed a
                    certified firearms safety examination.

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                (2) After demonstrating to the purchaser how to load, unload,
                    and safely store the firearm, and how to engage and
                    disengage all safety devices on the firearm.

                (3) After providing the purchaser with a copy of the ATF
                    Disposition of Firearms Notice.

                (4) After obtaining the purchaser's signature on a form
                    certifying that the purchaser has received the instruction
                    described in subparagraph (2) and the notice described in
                    subparagraph (3) and maintaining that form in its files.

                (5) After providing the purchaser with a written record of the
                    make, model, caliber or gauge, and serial number of each
                    firearm transferred to enable the purchaser to accurately
                    describe the firearm to law enforcement in the event that it
                    is subsequently lost or stolen.

         2. The manufacturer parties to the Agreement shall incorporate into any
            distribution or agency agreement with their authorized distributors
            and authorized dealers, including franchisees, procedures for
            terminating distributors, dealers or franchisees that engage in
            conduct in violation of this Agreement. Distributors and dealers
            shall agree to this enforcement system as a condition of becoming
            authorized. The manufacturer parties to this Agreement shall require
            annual certification by their authorized dealers and distributors
            that they are in compliance with the requirements in II.A.1(a-r) of
            this Agreement and applicable provisions of B. and C., below. If the
            manufacturer parties to this Agreement receive actual notice of a
            violation of the Agreement through their course of dealing with
            their authorized dealers and distributors, from ATF, state or local
            law enforcement, the Oversight Commission, another dealer or
            distributor, a customer or other credible source, the manufacturer
            parties to this Agreement will either immediately terminate sales to
            the dealer or distributor in violation or take the following
            actions. The manufacturer(s) that have authorized the dealer or
            distributor to sell its/their firearms will,

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            individually or collectively, notify the dealer or distributor
            within seven (7) business days of learning of such violation and
            inform the dealer or distributor of the breach and request
            information regarding the breach. The distributor or dealer will
            then have fifteen (15) days to provide the manufacturer(s) with the
            requested information. If the manufacturer(s) determine that the
            dealer or distributor is in violation of this section of the
            Agreement, the manufacturer(s) will provide no further product to
            the distributor or dealer until the manufacturer(s) determine that
            the distributor or dealer is in compliance with the Agreement.

            The manufacturer(s) shall inform the Oversight Commission and ATF of
            its/their notifications and decisions and provide them with the
            information provided by the dealer or distributor. If the Oversight
            Commission determines that suspension or termination of the dealer
            or distributor is warranted, and the manufacturer(s) did not take
            this action, the Oversight Commission shall direct the
            manufacturer(s) to do so.

      B. AUTHORIZED DISTRIBUTORS - ADDITIONAL PROVISION.

         Authorized distributors must agree to sell the manufacturer's products
         only to other authorized distributors or authorized dealers or directly
         to government purchasers.

      C. AUTHORIZED DEALERS -- ADDITIONAL PROVISIONS.

         In addition to the requirements in section II(A)(1), authorized dealers
         must agree:

         1. Not to sell any of the manufacturers' products to any federal
            firearms licensee that is not an authorized distributor or
            authorized dealer of that manufacturer.

         2. Not to engage in sales that the dealer knows or has reason to
            know are being made to straw purchasers.

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         3. To adhere to the following procedure for multiple handgun sales. If
            a purchaser wants to purchase more than one handgun, the purchaser
            may take from the dealer only one handgun on the day of sale. The
            dealer at that point will file a Multiple Sales Report with ATF. The
            purchaser may take the additional handguns from the dealer 14 days
            thereafter. This provision shall not apply to sales to qualified
            private security companies licensed to do business within the State
            where the transfer occurs for use by the company in its security
            operations.

      D. MANUFACTURERS.

      Each manufacturer must:

         1. Provide quarterly reports of its own sales data and downstream sales
            data, with the volume of sales by make, model, caliber and gauge, to
            ATF's National Tracing Center.

         2. Not market any firearm in a way that would make the firearm
            particularly appealing to juveniles or criminals, such as
            advertising a firearm as "fingerprint resistant."

         3. Refrain from selling any modified or sporterized semi-automatic
            assault pistol of a type that cannot be imported into the United
            States.

         4. Reaffirm their longstanding policy and practice of not placing
            advertisements in the vicinity of schools, high crime zones, or
            public housing.

         5. Verify the validity of a license against an ATF database before
            transferring a firearm to any licensee.

         6. Forgo any transfer of a firearm to a licensee if the manufacturer
            knows the licensee to be under indictment violations of the Gun
            Control Act or any violent felony or serious drug offense as
            defined in 18 U.S.C.  924(e)(2).

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         7. Implement a security plan for securing firearms, including
            firearms in shipment.  The plan will include the following
            elements.

            a. Employee and visitor movement into and out of the manufacturer's
               facility will be only through designated security control points,
               and visitors will be admitted only after positive identification
               and confirmation of the validity of the visit. Employees and
               visitors will pass through a metal detector before leaving.

            b. All areas where firearms are assembled and stored will be
               designated as restricted areas. Access will be authorized only
               for those employees whose work requires them to enter these areas
               or for escorted visitors. Protective barriers will be installed
               in restricted areas to deny or impede unauthorized access.

            c. Each facility or area where firearms, ammunition, or components
               are stored will be provided with a system to detect unauthorized
               entry.

            d. If firearms are shipped in cartons, the cartons will bear no
               identifying marks or words. The manufacturer parties to this
               Agreement will use only very strong cartons to protect against
               concealed pilferage in truck shipments, and large cartons will be
               secured with steel strapping in two directions. The manufacturer
               parties to this Agreement will use only carriers and freight
               forwarders that warrant in writing that they conduct criminal
               background checks on delivery personnel and report all thefts or
               losses of firearms to ATF within 48 hours of learning of the
               theft or loss. The manufacturer parties to this Agreement will
               inspect carriers' and forwarders' local facilities periodically.

         8. Encourage its authorized dealers and distributors to consent to
            up to three unannounced ATF compliance inspections each year.

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      E. CORPORATE RESPONSIBILITY.

         If ATF or the Oversight Commission informs the manufacturer parties to
         this Agreement that a disproportionate number of crime guns have been
         traced to a dealer or distributor within three years of the gun's sale,
         the manufacturer(s) that have authorized the dealer or distributor to
         sell guns will either immediately terminate sales to the dealer or
         distributor or take the following actions. The manufacturers will,
         individually or collectively, notify the dealer or distributor of the
         disproportionate number within seven (7) days and demand an explanation
         and proposal to avoid a disproportionate number of traces in the
         future. The dealer or' distributor will have fifteen (15) days to
         provide the explanation and proposal. If the manufacturer(s) determine
         that the explanation and proposal are not satisfactory, the
         manufacturer(s) will terminate supplies to the dealer or distributor.
         If the manufacturer(s) determine that the explanation and proposal are
         satisfactory, the manufacturer will continue supplies, but will closely
         monitor traces to the dealer or distributor in question. If
         disproportionate traces continue, the manufacturer(s) will terminate
         supplies to the dealer or distributor.

         The manufacturer(s) shall inform the Oversight Commission and ATF of
         its/their notifications and decisions and provide them with the
         information provided by the dealer or distributor. If the Oversight
         Commission determines that suspension or termination of the dealer or
         distributor is warranted, and the manufacturer(s) did not take this
         action, the Oversight Commission shall direct the manufacturer(s) to do
         so.

         Disproportionate number of crime guns: Upon execution of this
         Agreement, the Oversight Commission will convene to determine a formula
         to identify what constitutes a disproportionate number of crime guns.
         In determining the formula, the Oversight Commission shall consider the
         available data and establish procedures to ensure that the relevant
         data is obtained. This provision will not take effect until the
         Oversight Commission sets the formula and a mechanism for its
         implementation.

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III.  OVERSIGHT

      A. OVERSIGHT COMMISSION.

         1. COMPOSITION.  An Oversight Commission comprised of five members
            shall be formed.  The Commission members shall serve five-year
            terms except for first terms as noted and shall be appointed as
            follows:

            a. Two members by the city and county parties to the Agreement.
               First appointees to serve two- and three-year terms,
               respectively.

            b. One by the State parties to the Agreement.  First appointee to
               serve a three-year term.

            c. One member by the manufacturer parties to the Agreement.
               First appointee to serve a four-year term.

            d. One selected by ATF.  First appointee to serve a five-year
               term.

         2. AUTHORITY. -- The Oversight Commission, which will operate by
            majority vote, will be empowered to oversee the implementation of
            this Agreement. Its authorities will include but not be limited to
            the authority to (1) review the findings of ATF or the proofing
            entity that will oversee the design and safety requirements of Part
            T of this Agreement, (2) maintain records of firearms sold pursuant
            to the law enforcement exception, as set forth in Part I.B of this
            Agreement, (3) review the safety training materials and test set
            forth in Parts II.A.1.m-n of this Agreement, and (4) participate in
            the oversight of the distribution and sales provisions established
            in Part II of this Agreement, as set forth in Parts II.A.2 and II.E.

            The Oversight Commission shall have a staff, which will be entitled
            to inspect participating manufacturers and their authorized dealers
            and distributors to ensure compliance with the Agreement. The costs
            of the Commission shall be funded

                                 Page 17 of 21
<PAGE>   18
                                                                 March 17, 2000
                                                             SETTLEMENT DOCUMENT

            by the parties to the Agreement. Each manufacturer party to this
            Agreement will pay no more than $25,000 annually.

      B.    ROLE OF ATF.  -- ATF will continue to issue, regulate and inspect
            federal firearms licensees, collect multiple sales forms, conduct
            firearms traces, investigate firearms traffickers and straw
            purchasers, enforce the Gun Control Act and the National Firearms
            Act and fulfill its other statutory responsibilities.  To the
            extent consistent with law and the effective accomplishment of
            its law enforcement responsibilities, ATF will work with the
            manufacturer parties to the Agreement and the Oversight
            Commission to assist them in meeting their obligations under the
            Agreement.  In particular, to the extent that ATF uncovers
            violations of the following provisions in its inspections or
            other contacts with federal firearms licensees, it will inform
            the Oversight Commission: II(A)(1)(a), (b), (e), (h), (i), (j),
            (k), (o), (p), and (q), (C)(2) and (D)(1) and (5).  Nothing in
            this paragraph shall diminish the obligation of the manufacturer
            parties to this Agreement to make reasonable efforts to identify
            noncompliance and respond to notifications of violations from
            parties other than ATF.

      C. MANUFACTURER COOPERATION.

         1. Each manufacturer shall designate an executive level manager to
            serve as a compliance officer and shall provide the compliance
            officer with sufficient resources and staff to fulfill the officer's
            responsibilities under this agreement.

         2. The compliance officer shall be responsible for

            a. Ensuring that the manufacturer fulfills its obligations under
               this agreement;

            b. Training the manufacturer's officers and employees on the
            obligations imposed by this agreement; and

            c. Serving as the liaison to the Oversight Commission.

                                 Page 18 of 21
<PAGE>   19
                                                                 March 17, 2000
                                                             SETTLEMENT DOCUMENT

         3. Each manufacturer shall commit to full cooperation in the
            implementation and enforcement of this Agreement.

IV.   COOPERATION WITH LAW ENFORCEMENT.

      A. The manufacturer parties to this Agreement reaffirm their commitment to
         cooperate fully with law enforcement and regulators to eliminate
         illegal firearms sales and possession.

      B. Within six (6) months of the effective date of this Agreement, if
         technologically available, the manufacturer parties to this Agreement
         shall fire each firearm before sale and enter the digital image of its
         casing along with the weapon's serial number into a system compatible
         with the National Integrated Ballistics Identification Network system.
         The digital image shall be made available electronically to ATF's
         National Tracing Center.

      C. Manufacturers shall participate in ATF's Access 2000 program to
         facilitate electronic linkage to their inventory system to allow for
         rapid responses to ATF's firearms trace requests.

V.    LEGISLATION.

      The parties to this Agreement will work together to support legislative
      efforts to reduce firearms misuse and the development of authorized user
      technology.

VI.   EDUCATION TRUST FUND.

      Upon resolution of the current lawsuits brought by cities, counties, or
      States, the manufacturer parties to this Agreement shall dedicate one
      percent of annual firearms revenues to a trust fund to implement a public
      service campaign to inform the public about the risk of firearms misuse,
      safe storage, and the need to dispose of firearms responsibly.

VII.  MOST FAVORED ENTITY.

                                 Page 19 of 21
<PAGE>   20
                                                                 March 17, 2000
                                                             SETTLEMENT DOCUMENT

      If the manufacturer parties to this Agreement enter into an agreement with
      any other entity wherein they commit to institute design or distribution
      reforms that are more expansive than any of the above-enumerated items,
      such reforms will become a part of this Agreement as well.

      In addition, if firearms manufacturers that are not party to this
      Agreement agree to design or distribution reforms that are more expansive
      than any of the above-enumerated items, and if the manufacturers who are
      party to the other agreement(s) with more expansive terms, in combination
      with the manufacturer parties to this Agreement, account for fifty percent
      or more of United States handgun sales, manufacturer parties to this
      Agreement will agree to abide by the same design and distribution
      measures.

VIII. ENFORCEMENT.

      The Agreement will be entered and is enforceable as a Court order and as a
      contract.

Dated this 17 day of March, 2000.

Approved and Authorized by:

MANUFACTURER PARTIES TO THIS AGREEMENT:

/s/ L.E. Shultz
------------------------------------
Smith & Wesson

                                 Page 20 of 21
<PAGE>   21
                                                                 March 17, 2000
                                                             SETTLEMENT DOCUMENT

GOVERNMENTAL PARTIES TO THIS AGREEMENT:

------------------------------------
Department of the Treasury

/s/ [signature not legible]
------------------------------------
Department of Housing and Urban Development

STATE PARTIES TO THIS AGREEMENT:

------------------------------------
State of New York

------------------------------------
State of Connecticut

CITY AND COUNTY PARTIES TO THIS AGREEMENT:

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

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

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

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

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

                                 Page 21 of 21<PAGE>   1
                                                                   EXHIBIT 10.15

                          DEPARTMENT OF THE TREASURY

                 DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

                                 May 2, 2000

VIA FACSIMILE (413) 739-8528

Mr. L. Edward Shultz
President & Chief Executive Officer
Smith & Wesson
2100 Roosevelt Avenue
Springfield, MA 01102-2208

Dear Ed:

            This letter is to confirm your understanding that the agreement
entered into with the Departments of Housing and Urban Development and Treasury
and state and local governments on March 17, 2000 (the "Agreement") does not
obligate the parties to the Agreement other than Smith & Wesson to contribute
money to the oversight committee described in Section III.A. of the Agreement.
To be more specific, Section III.A.2. of the Agreement was not intended to and
does not create a financial liability for the federal, state and local
signatories of the Agreement.

            Please verify your agreement with this letter by countersigning
below.

                                     Sincerely,

  /s/ Neal S. Wolin                    /s/ Max I. Stier
--------------------------------     --------------------------------------
Neal S. Wolin                        Max I. Stier
General Counsel                      Deputy General Counsel for Litigation
Department of the Treasury           Department of Housing and Urban Development

  /s/ L. E. Shultz
--------------------------------
L.E. Shultz
President & Executive Officer
Smith & Wesson

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