Document:

Exhibit
10.10

 

EMPLOYMENT
AGREEMENT

 

This Agreement is made and entered into as of the 1st day of Nov., 2008,
by and between John A. DeSantis (hereinafter referred to as the “Executive”)
and Bushmaster Firearms International, LLC, a Delaware limited liability
company (hereinafter referred to as the “Company”).

 

The Company hereby agrees to employ the Executive and the Executive
accepts such employment upon the terms and conditions set forth in this
Agreement.

 

1.                                      Duties.

 

1.1                               Executive shall
serve the Company as President and General Manager during the term of this
Agreement and shall have such authority and perform such duties not
inconsistent with such position as may from time to time be prescribed by the
Board of Directors of the Company. Executive shall report to the Board or such
other person designated by the Board of Directors of the Company.

 

1.2                               Executive shall devote his
full time and best efforts to the performance of his duties for the Company and
shall not engage in any other business activities during the Employment Term
without prior written consent of the Company, acting through its Board of
Directors; provided that Executive may manage his personal investments to the
extent such activities do not otherwise violate the terms of this Agreement or
interfere with the performance of his duties to the Company.

 

2.                                      Term and Termination.

 

2.1                               Term: The term of
Executive’s employment under this Agreement will commence on Nov 1, 2008 (the “Commencement
Date”) and continue for two years through Nov 1, 2010 (the “Employment Term”)
unless sooner terminated as set forth in Section 2.2 of this Agreement.
Upon expiration of the Employment Term, the parties may by mutual agreement
renew this Agreement. Such renewal must be in writing. Upon expiration of the
Employment Term, should Executive continue in the Company’s employ and the
parties do not execute a written renewal or new employment agreement, (i) Executive
shall be an “Executive at will” at the same level of compensation as set forth
in Sections 3.1 and 3.2, (ii) the provisions of Section 2.2 of this
Agreement shall apply in accordance with its terms to any subsequent
termination of employment and (iii) Sections 6.1, 6.2, 6.3, 6.4, 6.5, 7
and 12 below (and no other terms of this Agreement) shall continue to be
applicable in accordance with their terms subsequent to the Employment Term.

 

 

2.2                               Termination:

 

(a)                                Executive’s
employment under this Agreement shall be terminated upon the earliest to occur
of any of the following:

 

(i)                                   the death of the Executive.

 

(ii)                                the Executive’s
inability to perform the essential functions of his duties with or without
reasonable accommodation on account of disability or incapacity for a period of
six (6) or more months, as reasonably determined by the Company’s Board of
Directors.

 

(iii)                            written notice
to Executive that the Company is terminating Executive’s employment hereunder
without cause.

 

(iv)                            the termination
of Executive’s employment by Executive because of a material adverse change in
the duties of Executive from those described in Section 1 or a requirement
by the Company that Executive relocate his place of residence by more than 50
miles, after written notice from Executive to the Company of the specific
duties and changes in Executive’s duties to which he objects, the reasons for
his objections, and his intent to terminate his employment because of such
changes, said written notice to be served on the Company by the Executive
within 90 days of the Executive’s knowledge of such alleged changes, and the
Company’s failure to modify within thirty (30) days the duties of the Executive
to conform to those described in or permitted by Section 1. The sale of
the Company or any other change in control of the Company shall not, in and of
itself, constitute a material adverse change in duties of the Executive.

 

(v)                               written notice
to the Company of the termination of Executive’s employment by Executive at any
time for any reason (other than as provided in clause (iv) above)
including, without limitation, resignation or retirement.

 

(vi)                            the termination
of Executive’s employment by Executive at any time for a material breach of
this Agreement by the Company after written notice of such breach to the
Company and the Company’s failure to cure such breach within thirty (30) days.

 

(vii)                         the termination
of Executive’s employment by the Company at any time “for cause,” such
termination to take effect immediately upon written notice from the Company to
Executive. For purposes of this Agreement, the term “for cause” shall mean (a) if
the Executive is convicted of, or pleads guilty or no contest to, a

 

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felony or any crime involving moral turpitude,
dishonesty or theft; or (b) material failure by the Executive to comply
with applicable laws or governmental regulations with respect to the Company’s
operations or the performance of duties of the Executive; or (c) actions
by the Executive involving embezzlement, theft, sexual harassment,
discrimination, fraud or other acts of a criminal nature by the Executive in
his dealings with the Company or its employees or representatives; or (d) Executive’s
continued failure to perform his substantial job functions after written notice
from the Company; or (e) Executive’s material violation of any written
policy of the Company; or (f) Executive’s failure to fully cooperate in
any investigation or audit of the Company or its affiliates, in each case as
reasonably determined by the Board of Directors of the Company. Upon such
termination for cause, the only obligation the Company will have under this
Agreement will be to pay Executive’s unpaid base salary accrued through the
date of termination.

 

(b)                                 Upon the
termination of this Agreement pursuant to clauses (iii), (iv) or (vi) only
of Section 2.2 (a), Executive shall be entitled to receive as a severance
payment, continued payments of his then current base salary in accordance with
the Company’s regular payroll policies for 24 months following his date of
termination. Executive’s severance payments shall be reduced by the amount of
any disability insurance payments from coverage provided by the Company or its
affiliates that are received by Executive during such severance payment period.
The severance payments will be paid in accordance with the Company’s applicable
payroll provisions and shall be reduced by any applicable withholding
requirements. In addition, for the duration of Executive’s receipt of severance
payments hereunder (but without abbreviating such period due to a prepayment by
the Company for purposes of this sentence) or until Executive becomes eligible
for similar benefits due to subsequent employment, Executive shall continue to
receive the same health and dental benefits he had received immediately prior
to such termination pursuant to Section 4 hereof, solely at the Company’s
expense.

 

(c)                                  A breach by
Executive of any undertaking set forth in Sections 6 or 7 hereof shall result
in an immediate termination of the rights of Executive hereunder (but shall not
relieve Executive of his obligation to comply with Sections 6 or 7 hereof).

 

Upon the termination of Executive’s employment for any reason, by
either party, the Executive shall immediately return to the Company any
property of the Company in his possession and, in the case of a termination potentially
entitling Executive to payment pursuant to Section 2.2(b) hereof,
execute and deliver to the Company a general release of claims against the
Company, its directors, officers, shareholders, employees and agents in form
satisfactory to the Company; return of this property and the execution and
delivery of such release shall be a

 

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precondition to the payment of any further compensation owed by the
Company to the Executive, if any, pursuant to Section 2.2 (b) or the
exercise of any options to purchase Common Stock of the Company granted to
Executive pursuant to this Agreement.

 

3.                                    Compensation. For all
services rendered by the Executive, the Company shall pay to the Executive:

 

3.1                               Base Salary: Base salary
at the rate of $350,000 per annum, payable in accordance with the Company’s
regular payroll policies commencing upon the Commencement Date.

 

3.2                               Bonuses:   Executive shall be eligible to earn an
annual target bonus of up to 100% of his base salary, with an opportunity to
earn up to 200% of his base salary, which, in each case, shall be earned based
on the achievement of individual and/or Company performance goals established
from time to time by the Board of Directors of the Company.

 

4.                                    Executive
Benefit Plans; Fringe Benefits.

 

Executive shall be entitled to (i) participate in whatever health
and dental insurance, short term and long term disability leave and 401(k) plans
are maintained by the Company from time to time for its salaried exempt employees
and (ii) four weeks of vacation per calendar year, such vacation to be
accrued and used in accordance with applicable Company policy.

 

5.                                    Equity
Compensation.

 

The Executive shall continue to participate in such equity and option
agreements that he has entered into previously with the Company or its parents.

 

6.                                    Restrictive
Covenants.

 

In consideration of this Employment Agreement and the severance
benefits conferred herein, Executive agrees to the following:

 

6.1                               Confidentiality: Executive
agrees to maintain in strictest confidence all proprietary data and other
confidential or non-public information (whether concerning the Company or any
of its customers or proposed customers) obtained or developed by Executive
before or in the course of his employment with the Company or with Bushmaster
Firearms, Inc., a Maine corporation, substantially all of the assets of
which were purchased by the Company on or about the Commencement Date. Such
information and data shall include but not be limited to the Company’s trade
secrets, patents, inventions, systems, computer programs and software,
procedures, manuals, confidential reports and communications and lists of
customers and clients, as well as information that the Company may obtain from
third parties in confidence or subject

 

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to non-disclosure or similar agreements. All such information and data
is and shall remain the exclusive property of the Company (or, in certain
circumstances, its particular customer) and shall be used solely for the
benefit of the Company. Any such information and data in Executive’s possession
after termination of his employment shall be promptly returned to the Company.
Executive’s obligations under this Section 6.1 shall survive any termination
of his employment.

 

6.2                              Non-Competition: Executive
acknowledges that he is a key employee of the Company and his talents and
services are of a special, unique, unusual and extraordinary character and are
of particular and peculiar benefit and importance to the Company. In order for
the Company to protect its interests against the competitive use of any
confidential information, knowledge or relationships concerning the Company and
its business to which Executive will have access by virtue of the special
nature of his relationship with the Company and his involvement in its affairs,
and in consideration of the payments made to Executive hereunder and the
agreements of the parties herein, Executive agrees that, for so long as this
Agreement is in effect and for a period of two (2) years following the
termination of Executive’s employment hereunder, Executive will not own (by
ownership of securities or otherwise), manage, operate, control, engage in as
an equity participant or be employed by or act as a consultant to, or be
connected in any manner with, the ownership, management, operation or control
of any business a substantial portion of whose business directly or indirectly
competes with that of the Company. In recognition of the geographic extent of the
Company’s existing and anticipated operations and the nature of the Company’s
business and competitive circumstances, the restrictive covenant contained in
this Section 6.2 shall apply throughout North America.

 

6.3                              Solicitation: Executive
agrees that, for so long as this Agreement is in effect and for a period of two
(2) years following the termination of Executive’s employment hereunder,
Executive shall not solicit or induce any employee of the Company to leave the
employ of the Company, or to hire or attempt to hire any person who was an
employee of the Company within the 12 month period preceding such action on
behalf of Executive or on behalf of any other person or entity, and Executive
further agrees, during such period, not to interfere with, disrupt or attempt
to disrupt any past, present or prospective contractual or other relationship
between the Company and any of its clients, customers, suppliers or employees,
current or prospective.

 

6.4                              Non-Disparagement. Executive
agrees that he shall not make any statement that would disparage the Company,
its subsidiaries or affiliates, their directors, officers or employees or any
product line of the Company or its affiliates. The Company shall not authorize
the making of any statement that would disparage Executive.

 

6.5                              Remedy for Breach: The parties
recognize that the services to be rendered under this Agreement by Executive
are special, unique, and of an extraordinary character, and that in the event
of a breach of this Section 6 by Executive, then the Company shall be
entitled to institute and prosecute proceedings in any court of competent
jurisdiction in equity, to enforce the specific performance of any terms,
conditions, obligations and requirements of this Section 6, and/or to
enjoin the Executive from continuing those actions which are in breach of this
Agreement, or to take any or all of the foregoing actions. Without limitation
of the foregoing, in

 

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the
event of a breach by Executive of this Section 6, Executive shall forfeit
any and all rights to receive severance payments under this Agreement. Nothing
herein contained shall be construed to prevent the pursuit of any other remedy,
judicial or otherwise, in case of any breach of this Section 6.

 

7.                                    Inventions and Patents.   Executive hereby assigns to
Company any and all right, title and interest in and to any and all ideas,
inventions, discoveries, trademarks, trade names, copyrights, patents and all
other information and data of any kind developed by the Executive during the
period of his employment with the Company, and shall cooperate with the Company
and execute any and all documents necessary to effect such assignments.

 

8.                                    Section Headings. Section headings
contained in this Agreement are for convenience only and shall in no manner be
construed as a part of this Agreement.

 

9.                                    Amendment. This Agreement
may be amended or modified only in writing signed by both parties.

 

10.                             Counterparts. This Agreement
may be executed in two or more counterparts each of which shall be deemed to be
an original but all of which together shall constitute one and the same
instrument.

 

11.                             Waiver. The failure of either party
hereto in any one or more incidences to insist upon the performance of any of
the terms or conditions of this Agreement, or to exercise any rights or
privileges conferred in this Agreement, or the waiver of any breach of any of
the terms of this Agreement shall not be construed as waiving any such terms
and the same shall continue to remain in full force and effect as if no such
forbearance or waiver had occurred.

 

12.                             Applicable Law. This Agreement
has been entered into in the State of New York. This Agreement shall be
construed according to and governed by the laws of the State of New York (excluding
conflict of laws principles), and Executive expressly irrevocably consents to
submit himself to the jurisdiction of the federal and state courts of the State
of New York, which shall be the exclusive forums in which any disputes arising
under this Agreement or otherwise in connection with Executive’s relationship
with the Company shall be adjudicated.

 

13.                             Reformation and Severability. In the event
any provision or portion of this Agreement shall be held invalid or
unenforceable by any court of competent jurisdiction, any such provision or
portion may be reformed by the court to the minimum extent necessary in order
to make it valid or enforceable as so reformed, whereupon the parties agree
that said provision or portion as so reformed shall be valid and enforceable by
or upon them without

 

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further action by the parties. Any such holding shall not invalidate or
render unenforceable any other term contained in this Agreement.

 

14.                             Entire
Agreement. This Agreement is intended
by the parties to integrate all prior discussions and writings, including
memoranda and e-mail messages, term sheets, and similar expressions of intent
into a single, complete statement of the understandings of the parties with
respect to the matters covered by this Agreement and the documents referred to
in it. Accordingly, the parties agree that this Agreement supersedes all prior
agreements and understandings between the parties with respect to its subject
matter and constitutes (along with the documents referred to in this Agreement)
a complete and exclusive statement of the terms of the agreement between the
parties with respect to its subject matter. In addition, the parties agree that
this Agreement may not be amended except by a written agreement executed by the
party to be charged with the amendment. The parties further agree and
acknowledge that

 

(i)                                     this Agreement has not been
entered into under undue time pressure, and that both parties have had an
adequate opportunity to review this Agreement with counsel,

 

(ii)                                  no oral assurances have been
given by either party that this Agreement is an interim agreement or that a
more comprehensive agreement is or will be forthcoming,

 

(iii)                               there are no oral conditions
or promises that supplement or modify this Agreement, and

 

(iv)                              this Section 14 does
not constitute “boilerplate”, but rather is a critical substantive provision of
this Agreement.

 

15.                             Assignment
and Successors. Executive’s rights under
this Agreement shall not be assignable by the Executive. This Agreement may be
assigned by Company and shall inure to the benefit of and be binding upon
Company, its successors and assigns.

 

16.                             Notices.  Any notice to be given under this Agreement
must be in writing and either delivered in person or sent by first class
certified or registered mail, return receipt requested, postage prepaid, if to
the Company, in care of the board of directors, and if to the Executive, at his
home address or addresses as either party shall have designated in writing to
the other party hereto.

 

17.                             Representation. Executive
represents and warrants that there is not agreement between him and any other
person or entity that could interfere with the performance of his duties and
obligations hereunder.

 

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IN WITNESS WHEREOF, Company has hereunto caused
its corporate name to be signed and sealed, and Executive has hereunto set his
hand, all being done in duplicate originals, with one original being delivered
to each party as of the day and year first above written.

 

 

	
   

  	
  BUSHMASTER
  FIREARMS

  INTERNATIONAL LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:  

  	
  Paul Miller

  
	
   

  	
  Title:  

  	
  Chairman of the Board

  
	
   

  	
   

  
	
   

  	
  /s/
  John A. DeSantis

  
	
   

  	
  John
  A. DeSantis

  

 

8Exhibit
10.11

 

PERSONAL &
CONFIDENTIAL

NOT VALID
UNLESS EXECUTED BY BOTH PARTIES

 

April 6, 2009

 

Mr. Thomas L. Millner 

3676 Dunloy Way 

High Point, NC 27262

 

Re: Purchase and Separation Agreement and
General Release

 

Dear Tommy:

 

This letter agreement (this “Agreement”)
confirms your resignation from your employment with Freedom Group, Inc.
(the “Company”) and the Company’s subsidiaries and related entities, and
your resignation from the Boards of Directors of the Company and its
subsidiaries, in each case, effective as of March 16, 2009 (the “Separation
Date”). By signing this Agreement, you agree to the terms and conditions
set forth below.

 

A.            Purchase and
Sale of Company Stock. Subject to your compliance with the
obligations set forth in this Agreement, the Company agrees to the following:

 

1.                                       Purchase and
Sale. On the terms and subject to the conditions of this Agreement, the
Company hereby agrees to purchase, and you agree to sell to the Company, all of
your shares of Common Stock of the Company (the “Common Stock”) and
Preferred Stock of the Company (the “Preferred Stock” and, collectively
with the Common Stock, the “Company Stock”) as follows: (i) 70,000
shares of Common Stock for an aggregate price of $225,400 (the “Common Stock
Purchase Price”) and (ii) 70,000 shares of Preferred Stock for an
aggregate price of $831,434 (the “Preferred Stock Purchase Price” and,
collectively with the Common Stock Purchase Price, the “Purchase Price”).

 

2.                                       Closing. The closing
of the purchase and sale of the Company Stock contemplated by this Agreement
(the “Closing”) shall take place on the Effective Date, as that term is
defined in Section I(4) below.

 

3.                                       Delivery of and
Payment for the Company Stock. At the Closing,

 

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(a)                                   you will
deliver to the Company the share certificates representing the Company Stock;
and

 

(b)                                  the Company
will pay you the Purchase Price by wire transfer of immediately available funds
to a bank account specified by you.

 

B.             Additional Payment. As an
inducement for you to enter into this Agreement, at the Closing the Company
will pay to you, in addition to the Purchase Price, the sum of $324,600 by wire
transfer of immediately available funds to a bank account specified by you.

 

C.             Options. Notwithstanding any
contrary provisions of the Nonqualified Stock Option Award Agreement, dated
May, 2008, which was entered into by you and the Company pursuant to the
American Heritage Arms, Inc. 2008 Stock Incentive Plan (the “AHA-SIP”),
all stock options, whether vested or unvested, that were granted to you under
the AHA-SIP shall be cancelled effective as of the Separation Date.

 

D.            Company Representations and Warranties. The Company
hereby represents and warrants to you that:

 

1.                                       Corporate
Organization; Authority to Conduct Business. The Company is a
corporation duly organized, validly existing and in good standing under the
laws of the State of Delaware. The Company has all corporate power and all
material governmental licenses, authorizations, consents and approvals required
to carry on its business as now conducted and as proposed to be conducted and
to own, operate and lease its properties and assets.

 

2.                                       Authority. The Company
has the requisite corporate power and authority to execute and deliver this Agreement
and to perform its obligations hereunder.

 

3.                                       Legal and
Binding Agreement. This Agreement has been duly executed and
delivered by the Company and constitutes a legal, valid and binding agreement
of the Company, enforceable against the Company in accordance with its terms.

 

E.             Millner Representations and Warranties. You hereby
represent and warrant to the Company that:

 

1.                                       Legal and
Binding Agreement. This Agreement has been duly executed and
delivered by you and constitutes a legal, valid and binding agreement by you,
enforceable against you in accordance with its terms.

 

2.                                       Title. The Company
Stock is all of the outstanding equity interests (other than unexpired options)
of the Company beneficially owned by you. You own the Company Stock
beneficially and of record, free and clear of any encumbrances and upon the
Closing will transfer to the Company good and valid title to the Company Stock
free and clear of any encumbrances.

 

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3.                                       No Other
Representations. Except as set forth herein, no representations or
warranties have been made to you by the Company or any officer, employee, agent
or affiliate of the Company with respect to this Agreement or the transactions
contemplated hereby.

 

F.             Millner’s
Obligations. In consideration of the payments and benefits
described in Sections A and B above, to which you are not
otherwise entitled, you voluntarily agree to the following:

 

1.                                       Your signature
below indicates that:

 

(a)                                  You are
knowingly and voluntarily waiving and releasing forever whatever claims you
have or may have against the Company and its direct and indirect parents
(including Cerberus Capital Management, L.P.), and their subsidiaries and
affiliates, together with their respective officers, members, managers,
directors, partners, shareholders, investors, principals, executives,
consultants, employees and agents, and any of their respective predecessors and
successors in interest and assigns (collectively, the “Releasees”),
based on your employment with the Company and any of its affiliates and the
cessation of your employment (other than claims you may have based upon your
rights under this Agreement).

 

(b)                                 This release
includes a complete waiver of all rights and claims that may have arisen,
whether known or unknown, against any of the Releasees, including but not
limited to, all rights and claims based on Title VII of the Civil Rights Act of
1964, the Civil Rights Act of 1991, the Civil Rights Act of 1866, the Age
Discrimination in Employment Act of 1967 (including the Older Workers Benefit
Protection Act), the Americans with Disabilities Act, the Family and Medical
Leave Act, the Fair Labor Standards Act, the Equal Pay Act, the Employee
Retirement Income Security Act of 1974, the New York State Human Rights Law,
and the New York Labor Laws, and the North Carolina Equal Employment Practices
Act, and the North Carolina Labor Laws and any other similar state or local
employment law (if and to the extent applicable and as any of the foregoing may
be amended from time to time), and any common law, public policy, contract
(whether oral or written, express or implied) or tort law, and any other local,
state or federal law, regulation or ordinance having any bearing whatsoever on
the terms and conditions of your employment and the cessation thereof and in
any way related to your employment relationship with any of the Releasees.

 

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(c)                                  You acknowledge
that you may hereafter discover claims or facts in addition to or different
from those which you now know or believe to exist with respect to the subject
matter of this Agreement and which, if known or suspected at the time of
executing this Agreement, may have materially affected this Agreement or your
decision to enter into this Agreement. Nevertheless, you hereby waive any
right, claim or cause of action that might arise as a result of such different
or additional claims or facts to the extent that those rights, claims, or
causes of action are based on your employment or the cessation thereof.

 

(d)                                 You agree that
if any court or governmental agency assumes jurisdiction over any claim,
demand, charge, complaint, lawsuit or other legal action that is, in whole or
in part, the subject of the release provided for in this Agreement or that, in
whole or in part, pertains to your employment or the cessation thereof, you
shall not be entitled to any monetary or other benefit that results from such
claim, demand, charge, complaint or lawsuit, except as otherwise expressly
required by applicable law.

 

2.                                       The employment
agreement entered into between you and Remington Arms Company, Inc. as of
the 31st day of June, 2007 (the “Employment
Agreement”), shall cease to have any further force or effect, as of the
Separation Date, except as set forth in Sections H(4) and (5) and
Section J(7) below, and by signing this Agreement you are
acknowledging that no further payments or other compensation or benefits, other
than as provided herein, are due to you thereunder or hereunder.

 

3.                                       Except as may
be required by law, you will not disclose the contents or substance of this
Agreement to anyone except members of your immediate family and any tax or
legal counsel you may consult regarding the meaning or effect hereof, and you
will instruct each of the foregoing not to disclose the same.

 

4.                                       You agree to
provide assistance to the Company and its affiliates by making yourself
available to provide information to, and to consult with, the Company and its
affiliates on matters about which you have knowledge as a result of your
employment, including but not limited to all matters (formal or informal) in
connection with any investigations, litigation (potential or ongoing) and
administrative, regulatory or other proceedings which currently exist, or which
may have arisen prior to or which arise following the signing of this
Agreement. Such cooperation will include, but not be limited to, your
willingness to be interviewed by representatives of the Company and its
affiliates and to participate in any such proceedings by deposition or
testimony. In the event that you are required to retain separate legal counsel
with respect to such deposition or testimony, the Company will reimburse you
for such reasonable costs thereof.

 

In the event that you are subpoenaed or
otherwise required by order of a court of competent jurisdiction or other legal
process to appear in connection with any matter or proceeding involving the
Company or its affiliates, you will notify the

 

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Company in accordance with the notice provisions set
forth in Section J(1) below at least fifteen (15) business
days in advance of such appearance, unless to do so would place you in
violation of the subpoena, court order or other legal process, in which case
you shall give as much notice as possible without placing yourself in violation
of the subpoena, court order or other legal process.

 

G.            Mutual
Obligations and Understandings.

 

1.                                       You represent
that you have not disparaged, and will not disparage, directly or indirectly,
the Company or any of the other Releasees, and you will not make any comments
or statements, written or oral, that reflect adversely on any of them, nor will
you make any comments or statements, written or oral, regarding the Company in
any public forum, other than factual statements about your responsibilities and
information about the Company that is in the public domain, without the prior
written approval of the undersigned or his designee. The Company agrees that
the Company’s controlling shareholders, directors and officers will not,
directly or indirectly, disparage you.

 

2.                                       By entering
into this Agreement, the Company does not admit, and specifically denies, any
liability, wrongdoing or violation of any law, statute, regulation or policy.
Nothing herein shall be deemed to constitute an admission of wrongdoing by the
Company or any of the other Releasees. Neither this Agreement nor any of its
terms shall be used as an admission or introduced as evidence as to any issue
of law or fact in any proceeding, suit or action, other than an action to
enforce this Agreement.

 

3.                                       You agree that
if you materially breach any provision of this Agreement, in addition to any
other legal or equitable remedy the Company may have, the Company will be entitled
to recover the consideration provided in Section B above and you
will reimburse the Company for all of its reasonable attorneys’ fees and costs
incurred to enforce this Agreement, to the fullest extent permitted by
applicable law. In the event that the Company materially breaches any provision
of this Agreement, in addition to any other legal or equitable remedy you may
have, the Company will reimburse you for all of your reasonable attorneys’ fees
and costs incurred to enforce this Agreement, to the fullest extent permitted
by applicable law.

 

H.            Obligations
Unrelated to this Agreement. Regardless of whether you
sign this Agreement, the following shall apply:

 

1.                                      You will be
paid for all earned but unused vacation days as of the Separation Date.

 

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2.                                       You are deemed
to have resigned from all Company directorships and/or officer positions,
effective as of the Separation Date. Should your signature be required on any
other document to effect the foregoing, you will provide it immediately upon
request.

 

3.                                       You are
required to return to the undersigned all records, materials and other property
you have in your possession or control that are the property of the Company no
later than the Separation Date, and by signing this Agreement, you are
representing that you have done so.

 

4.                                       You will comply
with the obligations set forth in Sections 8 through 15 of the Employment
Agreement as if set forth in their entirety in this Agreement.

 

5.                                       Your
participation in the Company’s benefit plans and programs will be determined as
follows.

 

(a)                                 Your continuing
coverage under the Company’s group health and dental plans will be governed by Section 7(f)(i)(D) of
the Employment Agreement.

 

(b)                                Your
participation in all other pension and welfare plans and programs provided by
the Company will cease on the Separation Date.

 

6.                                       Pursuant to Section 5.2
of the Remington Arms Company, Inc. 2006 Long Term Incentive Plan (the “LTIP”),
upon the Separation Date, you shall forfeit any Retention Bonus (as defined in
the LTIP) if and to the extent payable thereunder and shall not have the right
to receive any payment on the Payment Date (as defined in the LTIP).

 

I.              Consideration Period. By signing
this Agreement in the space provided below and returning it to the undersigned,
you are confirming your acceptance of the terms and conditions set forth
herein, and you are acknowledging the following:

 

1.                                       Because the
obligations as set out in this Agreement represent a complete waiver and release
of all claims that you have against the Company and the other Releasees based
on your employment and the cessation thereof, you should review it carefully
before signing. You can take up to twenty-one (21) days from your receipt of
this Agreement to consider its meaning and effect and to determine whether or
not you wish to enter into it. During that time, you are advised to consult
with an attorney.

 

2.                                       If you sign
this Agreement before the end of the twenty-one (21) day consideration period,
you are doing so voluntarily.

 

3.                                       In addition,
you may take up to seven (7) days after signing this Agreement to revoke
your signature. Any revocation shall be made in writing to the undersigned.

 

6

 

4.                                       This Agreement
will not become effective, and your rights under Sections A and B
above will not accrue, until after the seven (7) day period expires
without revocation. Provided that you sign this Agreement within the
consideration period and do not revoke your signature, the eighth (8th) day following the end of
the revocation period will be the “Effective Date”.

 

5.                                       If you elect
not to sign this Agreement, or if you revoke your signature, you will not
receive the payments or benefits described in Sections A and B
above.

 

J.             Miscellaneous.

 

1.                                      All notices,
requests and other communications to any party hereunder shall be in writing
(including facsimile transmission) and shall be given,

 

if to the Company, to:

 

Freedom Group, Inc.

870 Remington Drive

P.O. Box 700

Madison, NC 27025-0700

 

With a copy to (which shall not constitute notice):

 

Cerberus Capital Management, L.P.

299 Park Avenue

New York, NY 10171

Facsimile No.: (212) 891-1540

Attn: George Kollitides

 

With an additional copy to (which shall not
constitute notice):

 

Milbank, Tweed, Hadley & McCloy LLP

One Chase Manhattan Plaza

New York, NY 10005

Facsimile No.: (212) 822-5921

Attn: Roland Hlawaty, Esq.

 

if to you, to:

 

Thomas L. Millner

3676 Dunloy Way

High Point, NC 27262

 

2.                                      This Agreement
constitutes the entire agreement between the parties with respect to the
subject matter hereof and supersedes all prior negotiations, representations or
agreements relating thereto, whether written or oral, with the exception of any
agreements expressly described herein as having created continuing rights and obligations.
You represent that in executing this Agreement, you have not relied

 

7

 

on any promise, representation, inducement,
agreement or statement not set forth herein. No amendment or modification of
this Agreement shall be valid or binding upon the parties unless in writing and
signed by both parties.

 

3.                                      No failure by
any party to insist upon strict compliance with any term of this Agreement,
enforce any right, or seek any remedy upon any default of the other will
affect, or constitute a waiver of, the first party’s right to insist upon such
strict compliance, enforce that right, or seek that remedy with respect to that
default or any prior, contemporaneous, or subsequent default. No custom or
practice of the parties at variance with any provision of this Agreement will
affect or constitute a waiver of any party’s right to demand strict compliance
with all provisions of this Agreement

 

4.                                      In the event
that any one or more of the provisions of this Agreement is held to be invalid,
illegal or unenforceable, the validity, legality and enforceability of the
remaining provisions will not in any way be affected or impaired thereby.
Moreover, if any one or more of the provisions contained in this Agreement is
held to be excessively broad as to duration, scope, activity or subject, such
provisions will be construed by limiting and reducing them so as to be
enforceable to the maximum extent compatible with applicable law.

 

5.                                      This Agreement
will be binding upon, inure to the benefit of, and be enforceable by and
against the respective heirs, legal representatives, successors and assigns of
the parties to this Agreement.

 

6.                                      This Agreement
may be executed in any number of counterparts (which may be exchanged by
facsimile or email), each of which shall be deemed an original and both of
which when taken together shall constitute one and the same instrument.

 

7.                                      This Agreement
will be governed by and construed in accordance with the laws of the State of
New York without regard to the conflict of law principles thereof. Any dispute
arising under this Agreement will be resolved in accordance with Section 20
of the Employment Agreement, as if set forth in its entirety in this Agreement,
provided that any such action or proceeding shall be heard in the State of New
York, New York County. The parties expressly irrevocably consent to submit
themselves to the jurisdiction of the American Arbitration Association in the
of the State of New York, New York County and to the federal and state courts
of the State of New York, New York County, which shall be the exclusive forums
in which any disputes arising under this Agreement or otherwise in connection
with the matters set forth herein.

 

8

 

	
   

  	
  Sincerely,

  
	
   

  	
   

  
	
   

  	
  FREEDOM
  GROUP, INC.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Ted Torbeck

  
	
   

  	
  Title:

  	
  4-8-09
  CEO

  

 

 

I am signing this Agreement knowingly, voluntarily
and with full understanding of its terms and effects. I have not relied on any
representations or statements not set forth herein.

 

 

	
  /s/ Thomas L. Millner

  	
   

  
	
  Thomas L. Millner

  	
   

  
	
   

  	
   

  
	
  Date: 

  	
  4/6/09

  	
   

  
			

 

9

 

NOT VALID
UNLESS EXECUTED BY BOTH PARTIES

 

April 6, 2009

 

Mr. Thomas L. Millner 

3676 Dunloy Way

High Point, NC 27262

 

Re: Agreement Regarding
Health Insurance 

 

Dear Tommy:

 

This letter (this “Letter
Agreement”) confirms the agreement between you and Remington Arms Company, Inc.
(the “Company”) with respect to your health insurance (health, dental
and prescription drugs) after March 16, 2009. By signing this Letter
Agreement, you agree to the terms and conditions set forth below.

 

1.             Subject to the other terms
and conditions of this Letter Agreement, you and your qualified dependents
shall be permitted to participate in the health, dental and prescription drug
benefit plans provided to active employees of the Company and their qualified
dependents under the Company’s Group Benefits Plan, as in effect from time to
time, until you attain age 65 (the “Continuation Coverage”). You shall
be responsible for paying the premiums charged for such Continuation Coverage
at the applicable active employee rate.

 

2.             The Continuation Coverage is
intended to satisfy any continuation of coverage requirements of Section 4980B
of the Code and Part 6 of Title I of the Employee Retirement Income
Security Act of 1974, as amended (“COBRA”). In the event that the period
of Continuation Coverage expires prior to the end of any period of continuation
coverage to which you and your qualified dependents would be entitled under
COBRA (the “COBRA Period”), you and your qualified dependents may elect
continuation coverage under COBRA (“COBRA Coverage”) for the remainder
of the COBRA Period. You shall be responsible for paying the full amount of the
premium charged for such COBRA Coverage.

 

3.             In the event that the
Continuation Coverage does not, for any reason, satisfy the continuation of coverage
requirements of COBRA, you and your qualified dependents shall be entitled to
elect COBRA Coverage in lieu of the Continuation Coverage. In such event, you
and your qualified dependents shall be responsible for paying the full amount
of the premiums charged for such COBRA Coverage under the Company Group
Benefits Plan.

 

1

 

4.             In the event the Company
cannot provide you and your qualified dependents with coverage under the
Company’s Group Benefits Plan for the full Continuation Coverage period, the
Company may provide coverage under one or more alternative plans or
arrangements providing substantially equivalent coverage to the coverage then
being provided to active employees and their dependants under the Company’s
Group Benefits Plan.

 

5.             This Letter Agreement
constitutes the entire agreement between the parties with respect to the
subject matter hereof and supersedes all prior negotiations, representations or
agreements relating thereto, whether written or oral. You represent that in
executing this Letter Agreement, you have not relied on any promise,
representation, inducement, agreement or statement not set forth herein. No
amendment or modification of this Letter Agreement shall be valid or binding
upon the parties unless in writing and signed by both parties.

 

6.             This Letter Agreement will
be governed by and construed in accordance with the laws of the State of New
York without regard to the conflict of law principles thereof. Any dispute or
controversy arising under or in connection with this Letter Agreement shall be
resolved by binding arbitration. The arbitration shall be held within New York
State and New York County, and shall be conducted in accordance with the
Employment Arbitration Rules of the American Arbitration Association then
in effect and otherwise in accordance with principles which would be applied by
a court of law or equity. All expenses of arbitration shall be borne by the
party who incurs the expense or, in the case of joint expenses, by both parties
in equal portions. The parties expressly irrevocably consent to submit to the
jurisdiction of the American Arbitration Association in the of the State of New
York, New York County, and to the federal and state courts of the State of New
York, New York County with respect to the enforcement of any arbitral award,
which shall be the exclusive forums for any such disputes.

 

	
   

  	
  Sincerely,

  
	
   

  	
   

  
	
   

  	
  Remington
  Arms Company, Inc.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Ted Torbeck 4-8-09

  
	
   

  	
  Title:

  	
  CEO

  

 

 

I am signing this Letter Agreement knowingly, voluntarily and with full
understanding of its terms and effects. I have not relied on any
representations or statements not set forth herein.

 

 

	
  /s/ Thomas L. Millner

  	
   

  
	
  Thomas L. Millner

  	
   

  
	
  Date:

  	
  4/6/09

  	
   

  
			

 

2

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