Document:

ex10_4.htm

Exhibit 10.4

CONSULTING SERVICES AGREEMENT

This Consulting Services Agreement (“Agreement”), dated July 12, 2013, is by and between SCIENS INSTITUTIONAL SERVICES LLC, a Delaware limited liability company (“Provider”), and COLT DEFENSE LLC, a Delaware limited liability company (“Company”).

RECITALS:

WHEREAS, Provider has the capability of performing and the expertise to perform, certain consulting and other services for and on behalf of Company in connection with the business of the Company;

WHEREAS, Company is in need of such consulting and other services and does not have the capability, resources and expertise necessary to perform all of such services for itself; and

WHEREAS, Company desires to engage Provider, and Provider desires to be engaged by Company to perform certain consulting and other services in connection with the business of the Company.

NOW, THEREFORE, in consideration of the promises and agreements set forth in this Agreement and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound hereby, agree as follows:

ARTICLE I

Consulting Services To Be Provided

1.1           Consulting Services.  Provider shall provide the consulting services set forth on Schedule A and such other services as the parties hereto may from time to time agree (the “Consulting Services”).

1.2           Use of Independent Contractors.  Provider will provide Consulting Services either through its own resources or by contracting with third-party independent contractors.  If, when and to the extent that Provider decides to provide a Consulting Service through a third-party independent contractor, Provider shall consult with and obtain the Company’s approval, which approval shall not be unreasonably withheld or conditioned or unduly delayed.  Provider shall at all times remain fully liable for the performance by any third-party independent contractor retained by it.

1.3           Relationship Between Provider and Company.  The relationship between Provider and Company established by this Agreement and Provider’s performance hereunder shall be that of an independent contractor and not one of employee and employer, co-employer, joint employer, partner, joint venturer or alter ego.  Company agrees that it will have no right to control or direct the details, manner or means by which Provider, Provider’s employees or Provider’s contractors perform Consulting Services.  Provider shall be solely responsible for training, instructing and compensating its employees and contractors who perform Consulting Services, including, without limitation, paying their wages, salaries or fees, providing their benefits and the withholding of any and all taxes.  It is understood and agreed that Provider personnel performing Consulting Services will meet the job or position qualifications normally required of a person performing the particular or comparable service for Provider’s own internal operations.

  

  

  

ARTICLE II

Compensation for Consulting Services

2.1           Billings.                      The fee for the Consulting Services shall be equal to $650,000 per annum, payable quarterly in advance.

2.2           Taxes.  Provider shall be responsible for reporting all of its federal income and state income/franchise taxes, and filing all related federal and state income/franchise tax returns with governmental entities related to providing Consulting Services.

2.3           Expenses.  In addition to any fees that may be payable to Provider hereunder, the Company hereby agrees, from time to time upon request, to reimburse Provider for all reasonable expenses, disbursements, travel and other out-of-pocket expenses incurred in connection with the Consulting Services.

ARTICLE III

Information/Cooperation

3.1           Information Regarding Consulting Services.  Provider and Company shall each make available to the other party any information required or reasonably requested by that other party regarding the performance of Consulting Services and shall be responsible for timely providing that information and for the accuracy and completeness of that information.  Provider shall not be liable for any impairment of the Consulting Services caused by its not receiving information, either timely or at all, or by its receiving inaccurate or incomplete information from Company that is required or reasonably requested regarding the Consulting Services.

3.2           Cooperation.                                 Provider and Company will use good faith efforts to cooperate with each other in all matters relating to the provision and receipt of Consulting Services.  Provider and Company will cooperate with each other in making information available as needed in the event of any and all internal or external audits.  If this Agreement is terminated in whole or in part, the parties will cooperate with each other in all reasonable respects in order to effect an efficient transition to minimize the disruption to the business of both parties, including the assignment or transfer of the rights and obligations under any contracts to the extent assignable or transferable.

3.3           Further Assistance.  Provider and Company shall each take such actions, upon request of the other party and in addition to the actions specified in this Agreement, as may be necessary or reasonably appropriate to implement or give effect to this Agreement.

  

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ARTICLE IV

Confidential Information

4.1           Definition.                      For the purposes of this Agreement, “Confidential Information” means non-public information about the disclosing party’s or any of its affiliates’ business or activities that is proprietary and confidential, which shall include, without limitation, all business, financial, technical and other information, including software (source and object code) and programming code, of a party or its affiliates marked or designated “confidential” or “proprietary” or by its nature or the circumstances surrounding its disclosure should reasonably be regarded as confidential.  Confidential Information includes not only written or other tangible information, but also information transferred orally, visually, electronically or by any other means.  Confidential Information will not include information that (i) is in or enters the public domain without breach of this Agreement, or (ii) the receiving party lawfully receives from a third party without restriction on disclosure and to the receiving party’s knowledge without breach of a nondisclosure obligation.

4.2           Nondisclosure.  Provider and Company each agree that (i) it will not disclose to any third party (except a third party which is an affiliate of either party) or use any Confidential Information disclosed to it by the other except as expressly permitted in this Agreement, and (ii) it will take all reasonable measures to maintain the confidentiality of all Confidential Information of the other party in its possession or control, which will in no event be less than the measures it uses to maintain the confidentiality of its own information of similar type and importance.

 

 

4.3           Permitted Disclosure.  Notwithstanding the foregoing, Provider and Company may disclose Confidential Information (i) to the extent required by a court of competent jurisdiction or other governmental authority or otherwise as required by law, including, without limitation, to disclosure obligations imposed under the federal securities laws, provided that such party has given the other party prior notice of such requirement when legally permissible to permit the other party to take such legal action to prevent the disclosure as it deems reasonable, appropriate or necessary, or (ii) on a “need-to-know” basis, under a written obligation of confidentiality that contains customary restrictions to prevent unlawful trading in the Company’s securities on the basis of Confidential Information, to its consultants, legal counsel, affiliates, accountants, banks and other financing sources and their advisors.

4.4           Ownership of Confidential Information.  All Confidential Information supplied or developed by either party shall be and remain the sole and exclusive property of the party who supplied or developed it.

ARTICLE V

Amendment; Term; Termination

5.1           Amendment.  This Agreement, including the quarterly fee amounts, may be amended from time to time by written agreement of the parties.

5.2           Term.            This Agreement shall commence on the date hereof and, unless otherwise extended pursuant this Section 5.2, shall terminate on the earlier of (x) the seventh anniversary of the date hereof (the “Term”) or (y) the occurrence of a Capital Transaction (as defined below).  Upon a Capital Transaction prior to the end of the any applicable Term, the Company shall pay

  

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Provider the higher of (x) $650,000 and (y) the amount payable by the Company for the remainder of the Term (not to exceed two years) assuming the Capital Transaction had not occurred exclusively for the early termination of this Agreement plus expenses.  For purposes of the foregoing, a Capital Transaction means any of (1) the sale or other disposition of all or substantially all of the assets of the Company, (2) a merger, consolidation, stock exchange, stock issuance or other sale of stock transaction as a result of which the shareholders (or their equivalent) immediately prior to such transaction hold 50% or less of the stock (or its equivalent) of the Company (or the successor thereto) by vote or by equitable interest, (3) an initial public primary offering for stock of the Company (or any successor thereto) or (4) dissolution or liquidation of the Company (or any successor thereto). Upon the seventh anniversary of the date hereof, and at the end of each year thereafter (each of such seventh anniversary and the end of each year thereafter being a “Year End”), the Term shall automatically be extended for an additional year unless notice to the contrary is given by the Company at least 120, but no more than 180, days prior to such Year End, as applicable.  The provisions of Section 6.1, and the obligation to pay any accrued fees or expenses payable pursuant to Article II hereof shall survive the termination of this Agreement (fees shall for purposes of any mid-year termination of this Agreement be deemed to have accrued on a monthly basis).  Provider may terminate this Agreement at any time upon 90 days prior written notice.

ARTICLE VI

Indemnification

6.1           Company Indemnification.  The Company shall indemnify and hold harmless Provider and each of its Related Parties (as defined below) (each, an “Indemnified Party”) from and against any and all losses, claims, actions, damages and liabilities, joint or several, to which such Indemnified Party may become subject under any applicable statute, law, ordinance, regulation, rule, code, order, constitution, treaty, common law, judgment or decree, made by any third party or otherwise, relating to or arising out of the Consulting Services or other matters referred to in or contemplated by this Agreement or the performance by such Indemnified Party of the Consulting Services or other matters referred to or contemplated by this Agreement, and the Company will reimburse any Indemnified Party for all costs and expenses (including, without limitation, reasonable attorneys' fees and expenses) as they are incurred in connection with the investigation of, preparation for or defense of any pending or threatening claim, or any action or proceeding arising therefrom, whether or not such Indemnified Party is a party thereto. The Company will not be liable under the foregoing indemnification provision to the extent that any loss, claim, damage, liability, cost or expense is determined by a court, in a final judgment from which no further appeal may be taken, to have resulted from the gross negligence or willful misconduct of such Indemnified Party. The reimbursement and indemnity obligations of the Company, under this Section 6 shall be in addition to any liability which the Company may otherwise have, shall extend upon the same terms and conditions to any affiliate of Provider and any Related Party or controlling persons (if any), as the case may be, of Provider and any such affiliate and shall be binding upon and inure to the benefit of any successors, assigns, heirs and personal representatives of the Company, Provider, any such affiliate and any such Related Party or other person.

  

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6.2           Limitation of Liability.  Neither Provider nor any of its officers, directors, managers, principals, stockholders, partners, members, employees, agents, representatives and affiliates (each a “Related Party” and, collectively, the “Related Parties”) shall be liable to the Company or any of its affiliates for any loss, liability, damage or expense arising out of or in connection with the performance of any Consulting Services contemplated by this Agreement, unless such loss, liability, damage or expense shall be proven to result directly from the gross negligence or willful misconduct of such person. In no event will Provider or any of its Related Parties be liable to the Company for special, indirect, punitive or consequential damages, including, without limitation, loss of profits or lost business, even if Provider has been advised of the possibility of such damages. Under no circumstances will the liability of Provider and Related Parties hereunder relating to the provision of the applicable Consulting Services exceed, in the aggregate, the fees actually paid to Provider hereunder during the applicable year.

6.3           Survival.  The terms of this Article shall survive the termination of this Agreement.

ARTICLE VII

Arbitration

7.1           Disputes.  All disputes among the parties relating to or in connection with this Agreement, including, but not limited to, its interpretation, performance or breach, shall be submitted to binding confidential arbitration as described in this Article.

7.2           Notice; Selection of Arbitrators.  A party initiating arbitration shall provide notice of its demand for arbitration.  The parties shall have 45 days from receipt of such demand for arbitration in which to appoint a sole mutually acceptable arbitrator.  If the parties fail to appoint its arbitrator within such 45 days, the initiating party shall request that that American Arbitration Association appoint an arbitrator, which appointment shall be final.

7.3           Submission of Case.  A party shall submit its case to the arbitrator (the “Panel”) within one month from the date of the appointment of the arbitrator, but this period of time may be extended by written consent of the Panel.

7.4           Decision.  The Panel shall make its decision with regard to the custom and usage of Company’s business.  The written decision of the Panel shall be rendered within 60 days following the termination of the Panel’s hearings, unless the Parties consent to an extension.  Such decision of the Panel shall be final and binding upon the Parties both as to law and fact, and may not be appealed to any court of any jurisdiction.  Judgment may be entered upon the final decision of the Panel in any court of proper jurisdiction.

7.5           Fees and Expenses.  The Panel shall award to the prevailing party its costs and attorneys’ fees as well as the fees and expenses of the arbitrators.

7.6           Location.  Any arbitration pursuant to this Article shall be conducted in New York, New York, unless otherwise agreed in writing by the parties; provided, however, that the Panel may choose to take evidence and/or convene a hearing in a place other than New York, New York for the convenience of the parties, the witnesses or the Panel.

  

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ARTICLE VIII

Miscellaneous

8.1           Entire Agreement.  This Agreement, including Schedule A attached hereto, constitute the entire agreement between the parties pertaining to the subject matter hereof, and supersede all prior agreements, understandings, negotiations and discussions of the parties, whether oral or written, and there are no warranties, representations or other agreements between the parties in connection with the subject matter hereof.  For the avoidance of doubt, this Agreement does not supersede that certain Management Services Agreement, dated as of July 7, 2007, between the Company and Sciens Management LLC.

8.2           Waiver.  At any time the parties by written agreement may waive compliance with any of the provisions of this Agreement.

 

 

8.3           Governing Law.  This Agreement shall be construed and interpreted according to the laws of the State of New York without regard to the conflicts of Law rules thereof.

8.4            Successors and Assigns.  This Agreement shall inure to the benefit of and be binding upon the parties hereto and their respective successors and assigns.

 

 

8.5           Notices.  All communications, notices and disclosures required or permitted by this Agreement shall be in writing and shall be deemed to have been given when delivered personally or by messenger or by overnight delivery service, or within five days of being mailed by registered or certified United States mail, postage prepaid, return receipt requested, in all cases addressed to the person for whom it is intended at his address set forth below or to such other address as a party shall have designated by notice in writing to the other party in the manner provided by this Section 8.5:

	
If to Provider:

	
Sciens Institutional Consulting Services LLC

667 Madison Avenue

New York, NY 10065

Attention: John P. Rigas

 

	
If to Company:

	
Colt Defense LLC

547 Park Avenue

Hartford, CT 06110

Attention: Chief Executive Officer

 

8.6           Counterparts; Headings.  This Agreement may be executed in several counterparts, each of which shall be deemed an original, but such counterparts shall together constitute but one and the same Agreement.  The Article and Section headings in this Agreement are inserted for convenience of reference only and shall not constitute a part hereof.

8.7           Severability.  If any provision of this Agreement is held invalid or unenforceable by any court of competent jurisdiction, the other provisions of this Agreement will remain in full force and effect.  Any provision of this Agreement held invalid or unenforceable only in part or degree will remain in full force and effect to the extent not held invalid or unenforceable.

  

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8.8.           No Reliance.  Except for Related Parties, no third party is entitled to rely on any of the provisions of this Agreement and neither Provider nor Company assumes any liability to any third party because of any reliance on the provisions of this Agreement.

8.9           No Strict Construction. The parties to this Agreement have participated jointly in the negotiation and drafting of this Agreement. In the event an ambiguity or question of intent or interpretation arises, this Agreement will be construed as if drafted jointly by the parties, and no presumption or burden of proof will arise favoring or disfavoring any party by virtue of the authorship of any of the provisions of this Agreement.

8.10           Warranty Disclaimer.  PROVIDER MAKES NO EXPRESS OR IMPLIED REPRESENTATIONS OR WARRANTIES, INCLUDING WITHOUT LIMITATION, THE WARRANTIES IMPLIED BY LAW OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, REGARDING THIS AGREEMENT, THE PERFORMANCE OF THE CONSULTING SERVICES CONTEMPLATED BY THIS AGREEMENT OR ANY TANGIBLE PROPERTY DELIVERED BY PROVIDER PURSUANT TO THIS AGREEMENT.

[Signature Page Follows]

  

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IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed as of the date first above written.

	
Sciens Institutional Consulting Services LLC

 

 

By:  /s/ Z. Clifton Dameron

       Name:  Z. Clifton Dameron

       Its:       Authorized Signatory

 

 

Colt Defense LLC

 

 

By:  /s/ Gerald R. Dinkel

       Name:  Gerald R. Dinkel

       Its:       President and Chief Executive Officer

 

[SIGNATURE PAGE TO CONSULTING AGREEMENT]

  

  

  

SCHEDULE A

Consulting Services shall be comprised of the following (without limitation):

General:

(1) general corporate support, and (2) other consulting services conducted in the ordinary course consistent with past practice.

Legal Consulting:

General legal consulting with respect to: (1) mergers, acquisitions and joint ventures, (2) capital markets transactions, (3) borrowing for indebtedness, (4) litigation, (5) compensation arrangements and policies of the Company, including senior management and (6) coordination with, and selection of, counsel to the Company in connection with the foregoing

Financial:

General financial consulting with respect to (1) financial analysis of the Company’s results of operations and projections and (2) financial modeling of different financial scenarios and/or events

Management:

General consulting with respect to (1) compensation policies of the Company, including long term retention compensation, including option and other equity plans of the Company, (2) compensation of senior management of the Company, (3) compensation arrangements with senior management of the Company, (4) number and individuals serving as directors of the Company, (5) selecting and hiring senior executives of the Company, including the CEO, CFO and GC, (6) the management activities and evaluation of performance of senior management of the Company (including recommending and providing an Executive Chairman of the Company) and (7) selection and retention of advisors in connection with the foregoing.

Tax:

General tax consulting with respect to: (1) internal tax policies of the Company with regards to the corporate structure of Colt Defense and its subsidiaries, including mergers, acquisitions and joint ventures, (2) tax distribution policies of the Company, including consultation with the Company’s tax advisors regarding the tax distribution calculation and amounts, (3) coordination with, and selection of, legal and accounting tax advisors to implement the foregoing and (4) general tax planning of the Company.ex10_5.htm

Exhibit 10.5

EXECUTION VERSION

OPTION AGREEMENT

This Option Agreement (this “Agreement”), is made and entered into as of July 12, 2013 (the “Effective Date”), by and among Colt’s Manufacturing Company LLC, a Delaware limited liability company (“Optionholder”), Colt Archive Properties LLC, a Delaware limited liability company (the "Company"), Donald E. Zilkha (“Zilkha”) and John P. Rigas (“Rigas” and, together with Zilkha, the “Owners”).

WHEREAS, the Owners together hold 100% of the membership interests in the Company (the “Interests”); and

WHEREAS, the Owners desire to grant to Optionholder, and Optionholder desires to receive from the Owners, an option to purchase the Interests, in accordance with the terms and conditions hereof.

NOW, THEREFORE, in consideration of the above recitals and the mutual covenants hereinafter set forth, and for other good and valuable consideration, the receipt and sufficiency of which the parties hereby acknowledge, the parties hereby agree as follows:

Article 1

Grant of Option

1.1           Grant of Option.  The Owners hereby grant to Optionholder an option to purchase (the “Option”) the Interests for the Purchase Price (as defined herein) during the Option Period (as defined herein), upon sixty (60) days prior written notice to the Owners thereof, and in accordance with the additional terms and conditions contained herein.

1.2           Purchase Price.  The purchase price for the Interests, in the aggregate (the “Purchase Price”), shall be equal to (i) $5,000,000 or (ii) if the product of (x) 11.1 and (y) the LTM Pre-Tax Revenues of the Company (the “Product”) is greater than $5,000,000, the sum of $5,000,000 plus 50% of the amount by which the Product exceeds $5,000,000.  For purposes of the foregoing, “LTM Pre-Tax Revenues of the Company” shall mean an amount equal to the aggregate revenues of the Company as reflected on the Company’s monthly financial statements for the twelve months immediately preceding the date of calculation; in any case before giving effect to any taxes payable by the Company or the Owners.

 

Article 2

Option Terms

2.1           Option Period.  Purchaser may exercise the Option at any time from and after the date hereof until 5:00 p.m. EST on July 9, 2015 (the “Option Period”), at which time the Option shall terminate.

  

  

  

2.2           Termination; Exercise.   Optionholder may terminate this Agreement at any time for any reason or no reason upon sixty (60) days prior written notice to the Owners.  Optionholder may exercise the Option by providing the Owners with written notice of such exercise at any time during the Option Period.   If the Option is not exercised by Optionholder during the Option Period, then this Agreement shall be null and void and of no further force and effect.

2.3           Closing.  The closing of the purchase of the Interests as contemplated hereunder and payment of the Purchase Price (the “Closing”) shall take place at a time, place and date designated by Optionholder by written notice to the Owners not less than thirty (30) days prior to said Closing, and which date for the Closing shall be not more than sixty (60) days after the date of the exercise of the Option by Optionholder, which 60-day period shall be extended, if delay in Closing occurs as a result of material acts or omissions of the Owners, by any such delayed period (the “Conclusion Date”).  In the event that the Closing does not occur by the Conclusion Date, this Agreement shall immediately terminate.

 Article 3

Representations and Warranties

3.1           Optionholder.  Optionholder hereby represents and warrants to the Company and the Owners as follows:

(a) Corporate Organization.  Optionholder is a limited liability company, duly organized, validly existing, and in good standing under the laws of the State of Delaware.  Optionholder has all necessary power and authority to operate its business, and Optionholder holds all permits, licenses, orders and approvals of all federal, state and local governmental or regulatory bodies necessary and required therefor.

 

(b) Authority for Transaction.  The execution and delivery of this Agreement by Optionholder, and the consummation of the transactions contemplated hereby, have been duly and validly authorized by all necessary action of Optionholder.  This Agreement is the legal, valid and binding obligation of Optionholder, enforceable against Optionholder in accordance with its terms.  Neither the execution and delivery of this Agreement by Optionholder, nor the performance by Optionholder of its obligations hereunder, will violate Optionholder’s certificate of formation or limited liability company operating agreement or will result in a violation or breach of, or constitute a default under, any indenture, mortgage, deed of trust or other contract, license or other agreement to which Optionholder is a party or by which it is bound, or of any provision of any federal or state judgment, writ, decree, order, statute, rule, or governmental regulation applicable to Optionholder.

 

(c) No Governmental Consent.  No consent, approval, order, or authorization of, or registration, qualification, designation, declaration or filing with, any federal, state or local governmental authority is required on the part of Optionholder in connection with the execution or delivery of this Agreement or the consummation of the transactions contemplated hereby.

  

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3.2           Owners.  Each of the Owners, severally, and not jointly and severally, hereby represents and warrants to Optionholder as follows:

 

(a)           Enforceability.   This Agreement is the legal, valid and binding obligation of the Owner, enforceable against the Owner in accordance with its terms.  Neither the execution and delivery of this Agreement by the Owner, nor the performance by the Owner of its obligations hereunder, will violate nor will result in a violation or breach of, or constitute a default under, any indenture, mortgage, deed of trust or other contract, license or other agreement to which the Owner is a party or by which it or its assets is bound, or of any provision of any federal or state judgment, writ, decree, order, statute, rule, or governmental regulation applicable to the Owner.

 

Section 1.2. (b)           Ownership, Power to Transfer.  Owner is the beneficial and legal owner of the Interests set forth next to such Owner’s name on Schedule A hereto, free and clear of all liens, encumbrances and restrictions and apart from any restrictions on transfer as provided in this Agreement, in the limited liability company operating agreement of the Company and any restrictions on transfer imposed under applicable securities laws, and such Interests may be sold, transferred, assigned and conveyed by the Owner to Optionholder as called for in this Agreement without such sale, transfer, assignment and conveyance constituting a breach or default by the Owner of any provisions of any agreement or covenant by which Owner is bound.

 

 

Article 4

Miscellaneous

 

4.1 Further Assurances.  Each party shall execute such documents and other papers and take such further actions as may be reasonably required or desirable to carry out the provisions hereof and the transactions contemplated hereby.

 

 

4.2 Headings.  Titles and headings to sections and subsections herein are inserted for convenience of reference only and are not intended to be a part of or to affect the meaning or interpretation of this Agreement.

 

4.3 Expenses.  Except as otherwise provided herein, each party will pay all costs and expenses incident to its negotiation and preparation of this Agreement and to its performance and compliance with all agreements and conditions contained herein on its part to be performed or complied with, including the fees, expenses and disbursements of its counsel, accountants, advisors and consultants.

 

4.4 Assignment.  No party shall, without the prior written consent of the other party, assign or otherwise transfer, by operation of law or otherwise, this Agreement or the rights and obligations hereunder, and any attempt to assign or otherwise transfer this Agreement or the rights or obligations hereunder other than in accordance with the provisions of this Section shall be void and of no effect.  Subject to the foregoing, this Agreement will bind and inure to the benefit of the parties and their respective successors and permitted assigns.

  

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4.5 Notices.  All notices, demands or consents required or permitted under this Agreement shall be in writing and shall be deemed to have been given: (a) when delivered by hand (with written confirmation of receipt); (b) when received by the addressee if sent by a nationally recognized overnight courier (receipt requested); (c) on the date sent by facsimile or e-mail of a PDF document (with confirmation of transmission) if sent during normal business hours of the recipient, and on the next business day if sent after normal business hours of the recipient; or (d) on the third day after the date mailed, by certified or registered mail, return receipt requested, postage prepaid. Such communications must be sent to the respective parties at the following addresses (or at such other address for a party as shall be specified in a notice given in accordance with this Section):

 

	
(a)  

	
 if to Optionholder:

 

Colt’s Manufacturing Company LLC

545 New Park Avenue

West Hartford, CT 06110

Attn:  Chief Executive Officer

 

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

 

Sciens Capital Management LLC

667 Madison Avenue

New York, NY  10065

Attn:  Chief Legal Officer

 

 

	
  

	
(b)

	
if to the Company:

 

Colt Archive Properties LLC

c/o Zilkha Investments, L.P.

152 West 57th Street, 37th Floor

New York, NY 10019

Attention:  Donald E. Zilkha

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

 

Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C.

666 Third Avenue

New York, NY 10017

Attention:  Brian Platton, Esq.

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

 

Sciens Capital Management LLC

667 Madison Avenue

New York, NY  10065

Attn:  Chief Legal Officer

 

  

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(c)

	
if to the Owners:

 

Donald E. Zilkha

152 West 57th Street, 37th Floor

New York, NY 10019

Donald E. Zilkha

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

 

Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C.

666 Third Avenue

New York, NY 10017

Attention:  Brian Platton, Esq.

John Rigas

c/o Sciens Capital Management LLC

667 Madison Avenue

New York, NY  10065

4.6 Entire Agreement.  This Agreement (including any exhibits) constitutes the entire agreement and understanding between the parties with respect to the Option and other obligations of the parties set forth herein, superseding and replacing any and all prior agreements, communications, and understandings (both written and oral) regarding the subject matter hereof.

 

4.7 Amendment; Waiver.  No term or provision of this Agreement may be amended or supplemented except by a writing signed by each of the parties clearly stating the parties’ intention to amend or supplement this Agreement.  No term or provision of this Agreement may be waived other than by a writing signed by the party to be bound by such waiver.  No waiver by a party of any breach of this Agreement will be deemed to constitute a waiver of any other breach or any succeeding breach.

 

4.8 No Third Party Beneficiaries.  Nothing expressed or implied in this Agreement is intended, or shall be construed, to confer upon or to give any person, firm or corporation, other than the parties hereto, any rights or remedies under or by reason of this Agreement.

4.9 Execution in Counterparts.  For the convenience of the parties, this Agreement may be executed in counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument.  The parties agree that the delivery of this Agreement may be effected by means of an exchange by facsimile or other electronic methods.

 

4.10 Force Majeure.  Except with respect to payment obligations, no party hereto will be deemed in default if its performance or obligations hereunder are delayed or become impractical by reason of any act of God, war, fire, earthquake, labor dispute, civil commotion, epidemic, act of government or governmental agency or officers, or any other cause beyond such party’s control; provided that the delayed party promptly notifies the other party of such force majeure event and uses all commercially reasonable efforts to resume performance as soon as possible.

 

  

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4.11 Governing Law.  This Agreement shall be governed by and construed in accordance with the laws of the State of Connecticut, without regard to its conflict of laws provisions. Any and all disputes or claims arising in connection herewith shall be resolved by a court of competent jurisdiction within the State of Connecticut.  By executing this Agreement, each party submits to the exclusive jurisdiction of the state and federal courts sitting in the State of Connecticut, and the venue of the U.S. District Court for the State of Connecticut.

4.12 Severability.  If any provision of this Agreement is for any reason and to any extent deemed to be invalid or unenforceable, then such provision shall not be voided but rather shall be enforced to the maximum extent then permissible under applicable law and so as to reasonably effect the intent of the parties hereto, and the remainder of this Agreement will remain in full force and effect.

4.13 Remedies Non-exclusive.  Except as otherwise set forth herein, any remedy provided for in this Agreement is deemed cumulative with, and not exclusive of, any other remedy provided for in this Agreement or otherwise available at law or in equity.  The exercise by a party of any remedy shall not preclude the exercise by such party of any other remedy.

 

4.14 Specific Performance.  The parties agree that irreparable damage would occur in the event that any of the provisions of this Agreement were not performed by them in accordance with the terms hereof and that each party shall be entitled to seek specific performance of the terms hereof, in addition to any other remedy at law or equity.

 

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IN WITNESS WHEREOF, this Option Agreement has been duly executed and delivered by a duly authorized representative of each of the parties as of the date first set forth above.

	
OPTIONHOLDER:

 

COLT’S MANUFACTURING COMPANY LLC

 

By:  /s/ Dennis Veilleux

       Name:  Dennis Veilleux

       Title:     President/CEO

 

 

COMPANY:

 

COLT ARCHIVE PROPERTIES LLC

 

By:  /s/ John P. Rigas

       Name:  John P. Rigas

       Title:     Manager

 

By:  /s/ Donald E. Zilkha

        Name:  Donald E. Zilkha

       Title:      Member

 

 

OWNERS:

 

/s/ John P. Rigas

John P. Rigas

 

/s/ Donald E. Zilkha

Donald E. Zilkha

[Signature Page to Colt Archive Option Agreement]

  

  

  

SCHEDULE A

Schedule of Membership Interests in Colt Archive Properties LLC

	
Name

	
Percentage

	  	  
	
John P. Rigas

	
50.0%

	  	  
	
Donald E. Zilkha

	
50.0%

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00219-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00219-of-00352.parquet"}]]