Document:

EMPLOYMENT AGREEMENT

 Exhibit 10.6 
  
 EMPLOYMENT AGREEMENT 
  

This Employment Agreement (“Agreement”) is entered into as of June 15, 2003 by and between ACCLAIM ENTERTAINMENT, INC. a Delaware corporation
(“Company”) and GERARD F. AGOGLIA (“Employee”). 
  
 WHEREAS, Employee and Company are currently party to an employment agreement dated August 28, 2000 (the “2000 Agreement”): 
  
 WHEREAS, the parties wish to terminate the 2000 Agreement and enter into a new employment agreement on the terms set forth below. 
  
 NOW THEREFORE, the parties agree as follows: 
  
 1.  DEFINITIONS:    The following terms
shall, where the context allows, have the following meanings whether such terms shall appear in lower case or with the first letter of each word capitalized (the foregoing shall apply to all other defined terms used herein): 
  
 (a) “Company Client” means any person, business or
entity (collectively “Person”) to or through whom any Company Product or Service is sold or brought to market prior to or during Employee’s employment under this Agreement. 
  
 (b) “Company Product or Service” means any product
or service developed and/or sold or otherwise provided by Company during or prior to Employee’s employment under this Agreement, and all other products and/or services which are similar to such products or services, including, without
limitation, computer game software of all kinds. 
  
 (c) “Competitor” means any Person who is engaged in the development or sale of products or services like or similar to any Company Product or Service including, without limitation, the development or sale of computer game
software. 
  
 2.  EMPLOYMENT: 
  
 (a) Acceptance of Employment by
Company:    Company hereby engages Employee and Employee hereby agrees to provide to Company his full-time services as Executive Vice President, Chief Financial Officer, in accordance with the terms and conditions of this
Agreement. Employee will report to, and serve under the direction of the Chief Executive Officer and or such other person(s) as may be designated by Company, however, Employee shall serve as the highest-ranking financial officer of the Company.
Except during vacation period and reasonable periods of absence due to sickness, personal injury or other disability throughout the Term (as defined below) of this Agreement, Employee shall devote his full working time and attention during normal
business hours to performing his services and duties hereunder to the best of his ability and utilizing all of his skills, experience and knowledge to advance the business and interests of the Company in a manner consistent with the professional
duties and responsibilities of his position. Employee shall not, directly or indirectly, engage in or participate in the operation or management of, or render any services to, any other Person. Notwithstanding the foregoing to the contrary, Employee
shall not be prevented from investing and managing his assets in such form or manner as will not unreasonably interfere with the services to be rendered by Employee hereunder, or from acting as a director, trustee, officer of, or on a committee of,
or a consultant to, any other firm, trust or corporation or deliver lectures, fulfill speaking engagements or teach or coach at educational institutions whether or not for compensation where such positions do not unreasonably interfere with the
services to be rendered by Employee hereunder and where the business of such firm, trust or corporation is not in competition with Company’s (or any of Company’s affiliates) business. 
  

 1 

 (b) Location of Employment:    Employee shall render his
services at Company’s offices presently located in Glen Cove, New York; provided, however, that Employee shall render his services at such other locations from time-to-time as the proper performance of Employee’s duties may reasonably
require. 
  
 3.  TERM:    The
term of this agreement shall commence as of June 15, 2003 and shall continue for a period of three (3) years through and including June 14, 2006 (the “Term”) unless sooner terminated as provided for herein. Unless this Agreement is
terminated or amended by written agreement, the Term shall automatically be extended from year to year under the same terms and conditions as shall be in effect on the last termination date, unless either party terminates the Term by written notice
to the other party at least 90 days prior to the expiration of the then existing Term. Employee agrees that the covenants set forth in paragraph 6 (hereinafter “Restrictive Covenants”), and all other provisions of this Agreement related to
the enforcement thereof, shall continue throughout the full Term of this Agreement, surviving any termination of Employee’s employment hereunder for any reason. 
  
 4.  COMPENSATION, BENEFITS: 
  
 (a) Salary:    Company shall pay to Employee during the Term, an annual base
salary (the “Salary”) of Three Hundred Seventy One thousand Dollars ($371,000) per annum. The Salary shall be reviewed by the Company annually and may be increased if the Company, in its sole and absolute discretion, determines that such
an increase is advisable based on such factors as the Company shall consider appropriate from time to time (it is understood that no such review shall cause a decrease in Employee’s Salary). Employee’s Salary shall be payable in accordance
with the Company’s customary employee payroll policy as in effect from time to time. Such Salary, together with any other compensation which may be payable to Employee hereunder shall be less such deductions as shall be required to be withheld
by applicable law and regulations and shall be pro-rated for any period that does not constitute a full twelve (12) month period. 
  
 (b) Benefits:    In addition to the payments required by Paragraph 4 to be paid to the Employee during the Term
and to any benefits payable hereunder, the Employee shall: 
  
 (i) be eligible to participate in all employee fringe benefits and any pension and 401(k) plan that may be provided by the Company for its key executive employees in accordance with the provisions of any such plans;

  
 (ii) participate on the commencement of the
Term of this Agreement at the Company’s sole expense in medical, dental, disability, life and accidental death and dismemberment insurance plans that may be provided by the Company for its key executive employees in accordance with the
provisions of any such plans; 
  
 (iii) be
entitled to sick leave and sick pay in accordance with any Company policy and practice that may be applicable to key executive employees; and 
  
 (iv) be eligible for participation in the Company’s Employee Stock Purchase Plan, effective with the next available enrollment period
following commencement of this Agreement; 
  
 (v)
The Company shall obtain for Employee a life insurance policy (and pay for same) in the amount of One Million Dollars ($1,000,000) provided that such annual premium is not in excess of Ten Thousand Dollars ($10,000) per year, provided it is
Employee’s responsibility to secure such life insurance policy. 
  

 2 

 (c) Bonus:    Employee shall during each fiscal year of
Company during which Employee is employed hereunder, be eligible to participate in the Company’s Annual Incentive Plan (the “AIP”). Based upon the successful completion of stated goals as set forth by the Company in the AIP for the
fiscal year in question, employee shall be eligible to receive as a bonus up to 100% of his Salary (it being understood that the calculation of the amount of such bonus shall be as set forth in the AIP for such fiscal year). Company reserves the
right to amend, modify or cancel the AIP; provided that if Company does modify the financial goals of the AIP for any Fiscal Year which were set by Company at the commencement of such Fiscal Year, such modification will not affect the calculation of
Employee’s AIP Bonus for such Fiscal Year, if any (in other words Employee’s AIP bonus, if any, shall be calculated pursuant to the financial goals set at the commencement of the applicable Fiscal Year). 
  
 (d) Stock Options:    At the
discretion of Company Board of Directors, Employee may be awarded options to purchase shares of the Company’s common stock. Such options will be granted in accordance with the provisions of the 1998 Stock Option Plan (the “Plan”) of
the Company. The option price will be at the closing price of the Company’s stock on the NASDAQ SmallCap Market on the day the grant is officially approved by the Company’s Compensation Committee. The award of any options and the exercise
of such options shall be subject to the terms placed on such options at the time the Board makes any such award and in accordance with the provisions of Company’s Plan, as such Plan may be amended from time to time; provided, however, that if
this Agreement is terminated pursuant to Paragraph 8(c) or 8(e)(ii), below, Employee shall have the right to exercise any options which may be properly vested pursuant to the Stock Option Plan during the Severance Period (as such term is defined in
Paragraph 8(c), below). 
  
 (e) Automobile
Allowance:    Company shall provide Employee with an automobile allowance of $1,500 per month. Such allowance shall cover any leasing expenses, gas, maintenance and insurance, all of which shall be Employee’s sole
responsibility. 
  
 (f)
Vacation:    The Employee shall be eligible for four (4) weeks of vacation each year (20 days). The Employee may carry over as much as ten (10) days into his vacation bank to a maximum of ten (10) carryover days at any
given time. 
  
 (g)
Expenses:    Company will reimburse Employee for actual, ordinary and necessary travel and accommodation costs, entertainment and other business expenses incurred as a necessary part of discharging the Employee’s
duties hereunder, subject to receipt of reasonable and appropriate documentation as required from time-to-time by the Company. 
  
 5.  OWNERSHIP OF RESULTS AND PROCEEDS OF EMPLOYMENT:    All results and proceeds of Employee’s employment
(“Work Product”) hereunder shall be considered “work made for hire” and shall be owned exclusively throughout the world by the Company (including all copyrights and patents therein and thereto, and all renewals and extensions
thereof) in perpetuity (except with respect to patents or copyrights which shall be owned exclusively by Company for the duration of any applicable patent or copyright), free of any claims whatsoever by Employee or any other Person. Company shall
have the sole and exclusive right to copyright or patent the Work Product and documentation thereto, or other reproductions embodying the Work Product thereof, and any other material capable of copyright and/or patent protection created in
connection with the Work Product) in Company’s name, as the owner and author thereof, and to secure any and all registrations, renewals and extensions of such copyrights and patents in Company’s name or Employee’s name as permitted
pursuant to applicable statute. If Company shall be deemed not to be the owner or author of any of the aforementioned materials, this Agreement shall constitute an irrevocable transfer to Company of ownership of copyright and/or patent therein (and
all renewals and extensions). Employee shall, upon Company’s request, execute and deliver to Company transfers of ownership of copyright (and all renewals and extensions) or patent, as the case may be, in such materials and any other documents
as Company may deem necessary or appropriate to vest in Company the rights granted to Company in this Agreement, and if Employee does not execute any such above described transfers as required hereunder then Employee hereby irrevocably appoints
Company his attorney-in-fact for the purpose of executing those transfers of ownership and other documents in his name. 
  

 3 

 6.  CERTAIN COVENANTS OF EMPLOYEE:    Without in any way limiting or
waiving any right or remedy accorded to Company or any limitation placed upon Employee by law, Employee agrees as follows: 
  
 (a) Acknowledgment:    Employee understands and agrees that Company is engaged in the highly competitive
business of computer software development; that Company’s success is highly dependent upon the protection of Company’s trade secrets and confidential information; that Company has invested considerable resources of its time and money in
developing its products, services, staff, good will, procedures, clients, techniques, special training, client lists, manuals, records, documents, and other trade secrets and confidential information; and that upon and during employment under this
agreement Company has provided and will provide Employee access to and valuable knowledge regarding Company’s trade secrets and confidential information, creating a relationship of confidence and trust between Company and Employee. Employee
acknowledges and agrees that the use of such trade secrets or confidential information, or of Employee’s expertise or leadership, for the benefit of Company’s Competitors would be greatly harmful to Company, and that Company’s
willingness to enter into business with Employee and to provide Employee access to its trade secrets and confidential information is conditioned upon (i) the protection of Company’s trade secrets and confidential information for Company’s
sole and exclusive benefit, (ii) the retention of Employee’s expertise and leadership during the Term of this Agreement for the sole and exclusive benefit of Company, and not for any competitor, and (iii) the protection of Company against
Employee’s use for the benefit of any Competitor of the valuable skills Employee will acquire, develop and/or refine by virtue of employment with Company under this Agreement. Employee therefore agrees that the covenants and confidentiality
provisions set forth in this Agreement are reasonable in scope, time, territory and type of activity and necessary for the protection of Company’s legitimate interests, and further agrees that the knowledge of Company’s confidential
information and trade secrets to which he will gain access by virtue of employment under this Agreement, constitute good, sufficient and adequate consideration for the covenants and confidentiality provisions set forth in this Agreement. 

 
 (b) Limited
Non-Competition.    Except as provided below, Employee expressly covenants and agrees that during the Term of this Agreement and for a period of one (1) year following the termination of his employment with Company, for any
reason, with or without cause, Employee shall not, directly or indirectly, alone or in concert with others, compete with Company in any manner or form, including but not limited to serving in the capacity of employee, agent, consultant, owner,
investor, stockholder, partner, and/or independent contractor for any Competitor, nor will Employee, except for or on behalf of Company, solicit or attempt to solicit clients, business or patronage for the development or sale of any product or
service of Company. Employee acknowledges and agrees that the computer software development industry in which Company is engaged is not confined to any particular geographic market, but rather is global in geographic scope, and that the absence of a
restricted geographic scope to the limited covenant of non-competition set forth herein is therefore reasonable and necessary for the protection of Company’s assets, trade secrets, confidential information, good will and other legitimate
business interests. Further, the absence of a restricted geographic scope for the limited covenant of non-competition set forth herein shall not be invoked as or provide a defense to the enforceability of this Agreement or any provision hereof.
Notwithstanding the foregoing to the contrary, Employee shall have the right to own as a passive investment up to one percent (1%) of any Competitor, provided such Competitor is a public company. Further notwithstanding the foregoing to the
contrary, if this Agreement is terminated pursuant to paragraph 8 (c), then the first sentence of this paragraph 6(b) shall not apply to such termination. 
  

 4 

 (c) Limited Non-Solicitation of Company Clients.    Except as
provided below, Employee expressly covenants and agrees that for the one (1) year period following the termination of his employment with Company, for any reason, with or without cause, Employee shall not, directly or indirectly alone or in concert
with others, solicit or induce, or attempt to solicit or induce any Company Client, or any former Company Client who, in the twelve (12) month period prior to the effective date of such termination was an Company Client, to obtain or secure computer
software or its development from or through a Competitor. Further notwithstanding the foregoing to the contrary, if this Agreement is terminated pursuant to paragraph 8 (c), then the first sentence of this paragraph 6(c) shall not apply to such
termination. 
  
 (d) Limited Non-Solicitation
of Company Employees.    Employee expressly covenants and agrees that for the one (1) year period following the termination of his employment with Company, for any reason, with or without cause, Employee shall not, directly
or indirectly, alone or in concert with others, recruit, solicit or induce, or attempt to recruit, solicit or induce any employee, officer, consultant, representative, independent contractor or advisor of Company to terminate, alter, or modify their
employment or relationship with Company. 
  
 (e)
Proprietary Information: 
  
 (i) Employee
further acknowledges and agrees that the success of the Company depends, among other things, upon maintaining strict secrecy with respect to its trade secrets and confidential information relating to the design, development and marketing of its
products and services, including without limitation “know-how” trade secrets, details of supplier’s, manufacturer’s, Employee’s, employee or distributor’s contracts, pricing policies, financial data, operational
methods, marketing and sales information or strategies, product development techniques or plans, or any strategies relating thereto, technical processes, designs and design projects, and other proprietary information of the Company or any parent,
subsidiary or affiliate of Company (hereinafter individually referred to as a “Protected Company”) and to which trade secrets and confidential information Employee may acquire knowledge of or have access to during the course of his
employment by the Company. Such trade secrets and confidential information as described above are hereinafter referred to as “Proprietary Information”. For the purpose of this Agreement, Proprietary Information also includes, without
limitation, any and all information not lawfully and generally available to the public concerning the Company, and any Protected Company or any of its respective products, services, clients, affairs, personnel or suppliers. In addition, in the
course of its business, the Company may receive confidential disclosures of the trade secrets and confidential information of other persons and entities. In such event, when instructed by the Company, Employee shall receive and treat the trade
secrets and confidential information of such other persons and entities with the same obligation and degree of care as Employee treats the Proprietary Information of the Company. 
  
 (ii) Employee shall use his best efforts to exercise utmost diligence, as an individual as well as part of a
working group, to protect and guard the Proprietary Information of the Company and any Protected Company. Employee agrees not to disclose to any Person not employed by the Company or not engaged to render services to a Protected Company either
during or after his employment, nor to use, for himself or another, during or after his employment, without the Company’s written consent, any Proprietary Information obtained by him during his employment, whether developed by him or not, and
Employee agrees to hold all Proprietary Information in strict confidence; provided, however, that this provision shall not preclude the Employee from making, upon advice of counsel, any disclosure required by any applicable law or using or
disclosing information known generally to the public (other than information known generally to the public as a result of any violation of this Paragraph 6(e) by or on behalf of the Employee). 
  

 5 

 (iii) Proprietary Information shall at all times, both during the term of this Agreement
and at all times thereafter, be and remain the property of Company for its sole and exclusive use and benefit, and Employee shall deliver all documents containing or reflecting such information to Company at any time upon request of Company, and in
any event shall deliver all such documents to Company upon the termination of his employment regardless of whether or not expressly requested to do so at the time employment pursuant to this Agreement ceases. Upon leaving the employment of the
Company, Employee shall not take with him any of the Company’s Proprietary Information. 
  
 (f) Breach of Covenants.    Employee acknowledges and agrees that the services to be rendered by him hereunder
are of a special, unique, extraordinary and intellectual character which gives them peculiar value. In the event of any breach of any covenant or promise set forth herein, Employee agrees that Company shall be entitled to seek judicial remedies in
any appropriate court for the redress of such breach, including, without limitation, the right to seek injunctive relief. Employee further acknowledges that it will be difficult, if not impossible, to measure in money the damage that will be
suffered by the Company in the event that Employee fails to comply with the covenants and restrictions set forth in this Section 6 and that in such event the Company will not have an adequate remedy at law. Therefore, Employee agrees that the
Company in such event shall be entitled to injunctive relief, both temporary and permanent, to enforce such covenants or restrictions, or any of them, in any court having jurisdiction thereof, in addition to such other equitable and legal remedies
which may be available to it, and in the event that any action or actions should be instituted in equity to enforce any restriction or covenant hereunder, no party will raise the defense that there in an adequate remedy at law. 
  
 7.  RIGHTS AND REMEDIES UPON
BREACH:    If Employee breaches any of the provisions of the Restrictive Covenants, Company shall have the following rights and remedies, each of which rights and remedies shall be independent of the other and severally
enforceable: 
  
 (a) Specific
Performance:    The right and remedy to have the Restrictive Covenants specifically enforced by any court having equity jurisdiction, it being acknowledged and agreed that any such breach or threatened breach will cause
irreparable injury to the Company and that money damages will not provide an adequate remedy to the Company. 
  
 (b) Severability of Covenants:    If any court determines that any of the Restrictive Covenants, or any part
thereof, is invalid or unenforceable, the remainder of the Restrictive Covenants shall not thereby be affected and shall be given full effect, without regard to the invalid portions. 
  
 (c) Blue-Penciling:    If any court construes any of the Restrictive Covenants,
or any part thereof, to be unenforceable because of the duration or geographical scope of such provision, such court shall have the power to reduce the duration or scope of such provision and, in its reduced form, such provision shall then be
enforceable. 
  
 (d) No Waiver, Cumulative
Remedies:    The failure of any party to this Agreement to seek redress for a violation of or to insist upon the strict performance of any covenant or condition of this Agreement shall not prevent a subsequent act, which
would have originally constituted a violation, from having the effect of an original violation. The rights and remedies provided by this Agreement are cumulative and the use of any one right or remedy by any party shall not preclude or waive the
right to use any or all other remedies. Said rights and remedies are given in addition to any other rights or remedies the parties may have by law, statute, ordinance or otherwise. 
  

 6 

 8.  TERMINATION/SUSPENSION/CHANGE OF CONTROL: 
  
 (a) Termination Upon Death or Disability:

  
 (i) If during the Term of this Agreement
Employee should die, then this Agreement shall be deemed to have automatically terminated as of the date of Employee’s death. Employee’s estate shall be entitled to (I) any earned and accrued but unpaid Salary and earned and accrued by
unpaid vacation pay accrued prior to the date of such death and (2) a prorated AIP bonus (prorated based on the number of months expired from the commencement of the Fiscal Year in which Employee is terminated until the date of such termination), if
any, pursuant to the AIP (or any successor plan, if any,) which would otherwise have been payable to Employee for the Fiscal Year in which Employee dies (such amount, if any, shall be payable to Employee when such AIP bonuses are otherwise payable
for such fiscal year), but no later than 120 days following the expiration of the Fiscal Year in which Employee dies. 
  
 (ii) If during the Term of this Agreement Employee becomes Disabled (as such term is defined below) and such disability has lasted for a
period of 180 days in any consecutive 12 month period and no reasonable accommodation (as such term is defined in the Americans With Disabilities Act) is available or can be furnished, then following such period Company shall have the right to
terminate this Agreement or suspend the Term at Company’s election. In the event the Company elects to terminate this Agreement pursuant to this Paragraph 8 (a) (ii), then the Employee shall be entitled to receive from the Company all the
amounts and benefits payable or provided to the Employee under Paragraph 8 (c). In the event Company elects to suspend the Term hereof and Company’s obligations hereunder, then such suspension shall be for the duration of such disability and
the Term shall be automatically extended by a number of days equal to the total number of days of the suspension, or such fewer number of days of which Company may advise Employee in writing. Employee may only return to work following such
disability upon submission to Company of a certificate from the physician selected by the Company as aforesaid certifying that Employee is able to return to work. No suspension shall in any manner suspend or otherwise impair Company’s rights
under this Agreement. During the period that Employee is Disabled and prior to any Termination or suspension by Company, Employee shall retain his status and continue to receive his full compensation (Salary plus prorated AIP). As used in this
Agreement, the term “Disabled” shall mean Employee’s inability to substantially perform his duties and responsibilities under this Agreement by reason of a non-intentionally self-inflicted medical disability, including mental or
physical illness, as certified by a physician appointed by the Company. 
  
 (b) Termination for Cause:    Company shall have the right to terminate Employee’s employment pursuant to this Agreement for Cause. “Cause” for termination means (i) any act
of fraud, embezzlement, or other misappropriation or any other act or omission by Employee that amounts to a willful breach of Employee’s fiduciary duty to Company or its direct or indirect clients, (ii) Employee’s conviction of a felony
or any crime involving moral turpitude under state or federal law, or the equivalent under foreign law, (iii) Employee’s material breach of any rules or regulations of employment, or any policies related thereto, which may be adopted or amended
from time to time by Company of which Employee has been given written notice and which are consistent with this Agreement, (iv) Employee’s refusal to perform satisfactorily Employee’s duties and obligations under this Agreement, (v) any
other acts or omissions by Employee constituting neglect or dereliction of Employee’s duties hereunder, (vi) Employee’s willful refusal to carry out the reasonable instructions of the Board, or the Chief Executive Officer or such other
person as either the Board or Chief Executive Officer have determined, (vii) the happening of any event which, under the provisions of any federal, state or foreign laws applicable to Company or its activities, disqualifies Employee from acting in
any capacity provided for herein, including, without limitation, any event which disqualifies Employee under the Securities Act of 1933 or the Securities Exchange Act of 1934, or (viii) Employee’s default of any material obligations under this
Agreement (other than those specified in clauses (i) through (vi) above); provided however, that the Company shall have given Employee written notice specifying any event or breach specified in clauses (iii) through (vi) and (viii) above and
permitted Employee to cure any such breach within the period of 20 days after receipt of such notice if such breach is capable of being cured and Employee has failed to cure such breach within such 20 days; provided, further, however that the
Company shall not be obligated to provide Employee with notice and opportunity to cure more than one event or breach under each of clauses (iii) through (vi)and (viii) above. If Employee’s employment is terminated by Company for Cause,
Company’s obligations to Employee shall terminate immediately; provided that Company shall pay to Employee any unpaid salary and earned but unpaid vacation and AIP bonuses accrued prior to such termination and reimburse Employee for any
approved business expenses incurred by Employee prior to such termination. 
  

 7 

 (c) Termination Without Cause by Company or for Cause by Employee:    If the
Company terminates this Employment Agreement without cause by written notice to the Employee, or if Employee’s employment hereunder is terminated by Employee pursuant to Paragraph 8(e) hereunder, the Employee shall be entitled to receive from
the Company, (i) any unpaid Salary, unpaid vacation pay, unreimbursed business expenses and any other monies payable to the Employee under any employee benefit plan, in each case earned through the date of the Employee’s termination; (ii) from
and after the effective date specified in the Company’s notice of termination and for a period of twelve (12) months thereafter (the “Severance Period”), the Salary (it being understood, for the avoidance of doubt, that Employee shall
not be entitled to receive any bonuses of any type during the Severance Period) except with respect to any earned and accrued but unpaid AIP, as set forth in item (iv) below; (iii) continued coverage under Company’s then available medical,
dental, life and disability benefits for the 12-month period commencing with Employee’s termination of employment; (iv) Employee shall be entitled to a prorated bonus (prorated based on the number of months expired from the commencement of the
Fiscal Year in which Employee is terminated until the date of such termination), if any, pursuant to the AIP (or any successor plan, if any,) which would otherwise have been payable to Employee for the Fiscal Year in which Employee is terminated
hereunder (such amount, if any, shall be payable to Employee when such AIP bonuses are otherwise payable for such fiscal year), but no later than 120 days following the expiration of the Fiscal Year in which Employee is terminated, and (v)
notwithstanding anything to the contrary contained in the Stock Option Plan (as defined in Paragraph 4(d) hereinabove), all options previously granted to Employee shall become immediately vested and exercisable in full for a period of 180 days from
Employee’s termination. If the Employee should die at any time after the termination of this Employment Agreement pursuant to this Paragraph 8(c), the amounts or benefits payable or provided to the Employee under this Paragraph 8(c) shall
continue to be paid to the Employee’s estate or designated beneficiary in accordance with the provisions of Paragraph 8(a); provided, further, that any payments made to the Employee pursuant to this Paragraph 8(c) shall be offset by any
compensation that the Employee may receive from employment during the Severance Period. Fiscal Year as used in this Agreement means the fiscal year of Company. 
  

(d) Designation of Beneficiary:    The parties hereto agree that the Employee shall designate, by written notice to the
Company, a beneficiary to receive the payments described in Paragraph 4 in the event of his death. The designation of any such beneficiary may be changed by the Employee from time to time by written notice to the Company. In the event the Employee
fails to designate a beneficiary as herein provided, any payments which are otherwise to be made to a designated beneficiary under Paragraph 4 shall be made to the Employee’s estate. 
  
 (e) Termination by Employee for Cause/Change in Control:    If, during Employee’s
employment, (i) Company shall materially breach a material term of this agreement or (ii) there shall occur a “Change in Control” (as defined below) of Company and, within one year thereafter, there shall occur a change in Employee’s
“Circumstances of Employment” (as defined below), then Employee may terminate his employment pursuant to this Agreement by written notice to Company and Employee shall be entitled to receive the benefits provided in paragraph 8(c)(i)
through (v) above; provided, however, that Employee shall first have given Company written notice specifying the specific nature of such breach or such change in Employee’s Circumstances of Employment as case may be, and Company
has not cured any such breach or Change in Circumstances within the period of 20 days after receipt of such aforementioned notice. 
  

 8 

 (i) A “Change in Control” shall be deemed to occur upon (a) the sale by Company
of all or substantially all of its assets to any person (as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934), the consolidation of Company with any person, or the merger of Company with any person as a result of
which merger Company is not the surviving entity as a publicly held corporation, or (b) the sale or transfer or issuance of shares of Common Stock by Company and/or any one or more of its stockholders (other than Gregory E. Fischbach or James R.
Scoroposki), as the case may be, in one or more transactions, related or unrelated, to one or more persons as a result of which any person and its “affiliates” (as hereinafter defined), other than Gregory E. Fischbach or James R.
Scoroposki, shall own more than 35% of the outstanding Common Stock, unless such sale or transfer has been approved in advance by the Board. An “affiliate” shall mean any person that directly, or indirectly through one or more
intermediaries, controls, or is controlled by, or is under common control with, any other person. 
  
 (ii) Employee’s “Circumstances of Employment” shall be deemed to have changed if there shall have occurred any of the
following events: (A) a material reduction or change in Employee’s duties or reporting responsibilities; (B) a material breach by Company of any provision of this Agreement; (C) a material reduction in the fringe benefits made available by
Company to Employee, unless such reduction is also applicable to all senior executive officers of Company generally; (D) a material diminution in Employee’s status, working conditions or economic benefits; or (E) a reduction in Employee’s
Salary or AIP. 
  
 9.  EMPLOYEE’S
REPRESENTATIONS, WARRANTIES AND INDEMNITIES: 
  
 (a) Right
to Enter Into Agreement:    Employee has the right and is free to execute this Agreement, to grant the rights granted by him to the Company hereunder, and to perform each and every term and provision hereof. 
  
 (b) Breach Under Other Agreement or
Arrangement:    Neither the execution and delivery of this Agreement nor the performance by Employee of any of his obligations hereunder will constitute a violation, breach, or default under, any agreement, arrangement or
understanding, or any other restriction of any kind, to which Employee is a party or by which Employee is bound. 
  
 (c) Services Rendered Deemed Special, Etc.:    Employee acknowledges and agrees that the services to be rendered by him
hereunder are of a special, unique, extraordinary and intellectual character which gives them peculiar value, the loss of which cannot be adequately compensated for in an action at law and that a breach of any term, condition or covenant hereof will
cause irreparable harm and injury to Company and in addition to any other available remedy Company will be entitled to seek injunctive relief. 
  

 9 

 (d) Indemnity:    Employee agrees and does hereby indemnify save and hold
Company harmless from and against any and all damages, liabilities, costs, losses and expenses (including legal costs and reasonable attorney’s fees) arising out of or in connection with any claim, demand or action by a third party which is
inconsistent with any of the warranties, representations or agreements made by Employee in this contract. Employee agrees to reimburse Company, within ten (10) business days after demand is made by the Company, for any payment made by Company at any
time with respect to any such demand, liability, costs, loss or expense to which the foregoing indemnity applies; provided, such payment arises from a final judgment or arbitration or a settlement made with Employee’s prior consent, which
consent Employee shall not unreasonably withhold. Company shall notify Employee in writing of any such claim, demand or action promptly after Company has been formally advised thereof and Employee shall have the right, at his expense to participate
in the defense thereof with counsel of his choice. Notwithstanding the foregoing to the contrary, Employee shall not be liable to indemnify Company as provided above to the extent that any above referenced claim is covered by any insurance policies
Company may elect to maintain generally for the benefit of officers or in connection with any proceeding to which Employee (or Employee’s legal representatives or other successors) may be made a party by reason of Employee’s being or
having been an officer or Employee of Company and its subsidiaries and affiliates including, without limitation, any joint venture or partnership in which Company or any of its subsidiaries has an interest as long such actions were within the scope
of Employees duties hereunder. 
  
 10.  NOTICES:    Any notice, consent or other communication under this Agreement (hereinafter “Notice”) shall be in writing and shall be delivered personally, sent by facsimile transmission
(and confirmed in writing) or overnight courier (regularly providing proof of delivery) or sent by registered, certified, or express mail and shall be deemed given when so delivered personally, sent by facsimile transmission and confirmed in any
other manner permitted in this Paragraph 10 or overnight courier, or if mailed two (2) days after the date of deposit in the United States mail as provided herein. Notices shall be addressed to Employee at 135 Meadowview Drive, Trumbull, Connecticut
06611-1925, with copies to: Mark G. Sklarz, Cummings & Lockwood, 700 State Street, New Haven, Connecticut 06511. Notices shall be addressed to Company at One Acclaim Plaza, Glen Cove, New York 11542, Attention: Chief Executive Officer, and to
Fischbach, Perlstein & Lieberman, LLP, 1875 Century Park East, Suite 850, Los Angeles, CA 90067, Attention: Bernard J. Fischbach, Esq. Either party may change its address for Notices hereunder by notice to the other party in accordance with this
Paragraph 10. 
  
 11.  ASSIGNMENT:    Subject to paragraph 8(e), Company shall have the right, at its election, to assign any of its rights or obligations hereunder, in whole or in part to any parent, subsidiary,
affiliated, or related company, or to any person, firm, or corporation owning or acquiring a substantial portion of Company’s or Company’s stock or assets, and, to the extent of such assignment, Company and/or Company shall thereafter be
relieved of their obligations hereunder. Employee shall not have the right to assign any of his rights or obligations hereunder, except for family gifts or transfers of compensation payable under paragraph 4 to heirs, beneficiaries, or otherwise by
operation of law, in accordance with Company’s policies, practices and procedures. 
  
 12.  FURTHER INSTRUMENTS:    Employee shall furnish Company with any further instruments, in such form and substance as shall be approved or designated by Company, which Company
may reasonably require or deem necessary, from time to time, in its discretion, to evidence, establish, protect, enforce, defend or secure to Company any or all of its rights, titles, properties or interests or more fully to effectuate or carry out
the purposes, provisions or intent of this Agreement. In this connection, Employee hereby irrevocably constitutes and appoints Company as its lawful attorney-in-fact to execute, acknowledge and deliver all such further instruments and to do all acts
and things contemplated by this paragraph. 
  

 10 

 13.  COMPLETE AGREEMENT; MODIFICATION AND TERMINATION:    This
Agreement contains the entire agreement between the parties with respect to Employee’s employment by Company, superseding all existing agreements between them concerning Employee’s employment. This Agreement may not be amended, modified,
superseded, canceled, or waived except by a written instrument signed by the party to be charged. The headings in this Agreement are solely for the convenience of reference and shall not affect its interpretation. 
  
 14.  COMPANY INDEMNITY:    Company shall
indemnify Employee (and Employee’s legal representatives or other successors) to the fullest extent permitted by the laws of the State of Delaware and its existing certificate of incorporation and by-laws, and Employee shall be entitled to the
protection of any insurance policies Company may elect to maintain generally for the benefit of officers, against all costs, charges and expenses whatsoever incurred or sustained by Employee (or Employee’s legal representatives or other
successors) in connection with any action, suit or proceeding to which Employee (or Employee’s legal representatives or other successors) may be made a party by reason of Employee’s being or having been an officer or Employee of Company
and its subsidiaries and affiliates including, without limitation, any joint venture or partnership in which Company or any of its subsidiaries has an interest. 
  

15.  GOVERNING LAW:    Subject to paragraph 14, this Agreement shall interpreted with, and governed by, the laws
of the State of New York, without regard to conflicts of law doctrines. Any claim, dispute or disagreement in respect of this Agreement may be brought only in the courts of the State of New York, in Nassau County or the federal courts within the
State of New York and in Nassau County, which courts shall have exclusive jurisdiction thereof. Any process in any action or proceeding commenced in such courts may, among other methods, be served upon the parties hereto, as applicable, by
delivering or mailing the same, via registered or certified mail, return receipt requested, addressed to Company or Employee, as applicable, at the addresses set forth or designated pursuant to paragraph 10, above. Any such service by delivery or
mail shall be deemed to have the same force and effect as personal service within the State of New York. 
  
 16.  2000 EMPLOYMENT AGREEMENT:    The 2000 Employment Agreement is terminated effective as of the execution of this
Agreement. 
  
 WHEREFORE, the parties hereto have executed this
Agreement as of the day and year first above written. 
  
 ACCLAIM ENTERTAINMENT, INC. 
  
 By:
Rodney P. Cousens 
 Its: Chief Executive Officer 
  
 /s/ Gerard F. Agoglia     
 GERARD F. AGOGLIA 
  

 11<PAGE>

                                                                    EXHIBIT 10.1

                              Armor Holdings, Inc.

                                  $150,000,000

                    8 1/4% Senior Subordinated Notes due 2013

                               PURCHASE AGREEMENT

August 6, 2003

Wachovia Capital Markets, LLC
One Wachovia Center
301 South College Street
Charlotte, North Carolina 28288-0604

Ladies and Gentlemen:

         Armor Holdings, Inc., a Delaware corporation (the "Company") and
certain of the Company's domestic subsidiaries listed on Schedule 1 hereto (the
"Guarantors") confirm their agreement with Wachovia Capital Markets, LLC (the
"Initial Purchaser") on the terms set forth herein.

         1. Notes. The Company proposes to issue and sell to the Initial
Purchaser $150,000,000 principal amount of its 8 1/4% Senior Subordinated Notes
due 2013 (the "Notes"), guaranteed on a senior subordinated basis by the
Guarantors (the "Note Guarantees"). The Notes are to be issued under an
indenture (the "Indenture") to be dated as of the Closing Date (as defined in
Section 3 hereof) among the Company, the Guarantors and Wachovia Bank, National
Association, as trustee (the "Trustee"). This Agreement, the Registration Rights
Agreement, to be dated the Closing Date, among the Initial Purchaser, the
Company and the Guarantors (the "Registration Rights Agreement"), and the
Indenture are hereinafter collectively referred to as the "Operative Documents"
and the execution and delivery of the Operative Documents and the transactions
contemplated herein and therein are hereinafter referred to as the "Offering".

         The offer and sale of the Notes to the Initial Purchaser will be made
without registration of the Notes (and the Note Guarantee) under the Securities
Act of 1933, as amended (the "Securities Act"), in reliance upon certain
exemptions from the registration requirements of the Securities Act. The Initial
Purchaser has advised the Company and the Guarantors that they will offer and
sell the Notes purchased by them hereunder in accordance with Section 4 hereof
and the Final Memorandum (as defined below) as soon as they deem advisable.

         In connection with the sale of the Notes, the Company has prepared a
preliminary offering memorandum, dated July 25, 2003 (the "Preliminary
Memorandum"), and a final offering memorandum, dated the date hereof (the "Final
Memorandum"). Each of the Preliminary Memorandum and the Final Memorandum sets
forth certain information concerning the Company, the Notes, the Operative
Documents and the Offering. As used herein, the term "Preliminary Memorandum"
and "Final Memorandum" shall include in each case the documents incorporated by
reference therein. The Company hereby confirms that it has authorized the use

                                        1
<PAGE>

of the Preliminary Memorandum and the Final Memorandum, and any amendment or
supplement thereto, in connection with the offer and sale of the Notes by the
Initial Purchaser. Unless stated to the contrary, all references herein to the
Final Memorandum are to the Final Memorandum as of the date hereof (the
"Execution Date") and are not meant to include any amendment or supplement, or
any information incorporated by reference therein, subsequent to the Execution
Date.

         Concurrently with, or prior to, the consummation of the sale of the
Notes hereunder, the Company will obtain a consent (the "Bank Consent") from the
lenders under its existing credit facility pursuant to the Amended and Restated
Credit Agreement, dated as of August 22, 2001 (the "Existing Credit Agreement"),
among the Company, as borrower, Bank of America, N.A., as lender and
administrative agent, and other lenders, permitting the Company to conduct and
consummate the Offering.

         2. Representations and Warranties of the Company and the Guarantors.
The Company and the Guarantors jointly and severally represent and warrant to,
and agree with, the Initial Purchaser that:

         (a) The Preliminary Memorandum, at the date thereof, did not contain
any untrue statement of a material fact or omit to state any material fact
necessary to make the statements therein, in light of the circumstances under
which they were made, not misleading. The Final Memorandum (without regard to
any documents incorporated by reference therein subsequent to the Execution
Date), at the date hereof, does not and at the Closing Date (as defined below)
will not (and any amendment or supplement thereto, at the date thereof and at
the Closing Date, will not), contain any untrue statement of a material fact or
omit to state any material fact necessary to make the statements therein, in
light of the circumstances under which they were made, not misleading; provided,
however, that the Company makes no representations or warranties as to the
information contained in or omitted from the Preliminary Memorandum or the Final
Memorandum (or any amendment or supplement thereto) in reliance upon and in
conformity with information furnished in writing to the Company by or on behalf
of the Initial Purchaser specifically for inclusion therein, as specified in
Section 11.

         (b) Each of the Company, the Guarantors and their direct and indirect
subsidiaries is duly organized and is in good standing under the laws of the
jurisdiction in which it is chartered or organized, validly existing and is duly
qualified to do business as a foreign corporation under the laws of each
jurisdiction which requires such qualification wherein it owns or leases
material properties or conducts material business, except in such jurisdictions
in which the failure to be so incorporated or organized and validly existing or
to so qualify, in the aggregate, would not have a Material Adverse Effect.
Schedule 1 sets forth each jurisdiction in which each of the Company and the
Guarantors is chartered or organized and validly existing. As used in this
Agreement, the term "Material Adverse Effect" shall mean a material adverse
change in or effect on the business, condition (financial or otherwise),
properties, net worth or results of operations, whether or not in the ordinary
course of business, of the Company, the Guarantors and their direct and indirect
subsidiaries, considered as one enterprise. As used in this Section 2(b) only,
the term Material Adverse Effect does not include a change resulting from a
materially adverse change to the industry generally in which the Company
operates.

                                       2
<PAGE>

         (c) Each of the Company, the Guarantors and their direct and indirect
subsidiaries has full power (corporate and other) to own or lease their
respective properties and conduct their respective businesses as described in
the Final Memorandum; and each of the Company and the Guarantors has full power
(corporate and other) to enter into the Operative Documents and to carry out all
the terms and provisions hereof and thereof to be carried out by it.

         (d) The Company has an authorized, issued and outstanding
capitalization as set forth in the Final Memorandum. All of the issued shares of
capital stock of the Company and the Guarantors have been duly authorized and
validly issued and are fully paid and nonassessable.

         (e) The issued shares of capital stock of each of the Company's direct
and indirect subsidiaries have been duly authorized and validly issued, are
fully paid and nonassessable and, except as described in the Final Memorandum,
are (i) owned of record and beneficially by the Company, either directly or
through wholly-owned subsidiaries, and (ii) are free and clear of any pledge,
lien, encumbrance, security interest, restriction on voting or transfer,
preemptive rights or other defect in title or any claim of any third party or
that would have a Material Adverse Effect. Schedule 2 sets forth all direct and
indirect subsidiaries of the Company that constitute a "Significant Subsidiary"
within the meaning of Article 1 of Regulation S-X of the Securities Act.

         (f) No direct or indirect subsidiary of the Company is prohibited,
directly or indirectly, from paying any dividends to the Company, from making
any other distribution on such subsidiary's capital stock, from repaying to the
Company any loans or advances to such subsidiary from the Company or from
transferring any of such subsidiary's property or assets to the Company or any
other direct or indirect subsidiary of the Company, except as provided by
applicable laws or regulations, by the Indenture, or as described in or
contemplated by the Final Memorandum.

         (g) Except as set forth in the Final Memorandum, there are no
outstanding (i) securities or obligations of the Company convertible into or
exchangeable for any capital stock of the Company, (ii) warrants, rights or
options to subscribe for or purchase from the Company, any such capital stock or
any such convertible or exchangeable securities or obligations or (iii)
obligations of the Company to issue such shares, any such convertible or
exchangeable securities or obligations, or any such warrants, rights or options.

         (h) PricewaterhouseCoopers LLP, who has certified the financial
statements and supporting schedules included in the Final Memorandum and
delivered its reports with respect thereto are independent public accountants
with respect to the Company and each Guarantor within the meaning of the
Securities Act and the applicable rules and regulations thereunder.

         (i) The consolidated financial statements (including the notes thereto)
and schedules of the Company and the Guarantors (as a group) included in the
Final Memorandum fairly present in all material respects the financial position
of the Company and the Guarantors on a consolidated basis and their results of
operations as of the dates and for the periods specified therein; since the date
of the latest of such financial statements, there has been no change nor any
development or event involving a prospective change which has had or could
reasonably be expected to have a Material Adverse Effect; such financial
statements and schedules have been prepared in accordance with generally
accepted accounting principles consistently applied

                                       3
<PAGE>

throughout the periods involved (except as otherwise expressly noted in the
notes thereto or elsewhere in the Final Memorandum); and the other financial and
statistical information and data included in the Final Memorandum are accurately
presented and prepared on a basis consistent with such financial statements and
the books and records of the Company, the Guarantors and their direct and
indirect subsidiaries.

         (j) Each of the Company, the Guarantors and their direct and indirect
subsidiaries maintains a system of internal accounting controls sufficient to
provide reasonable assurances that: (i) transactions are executed in accordance
with management's general or specific authorizations; (ii) transactions are
recorded as necessary to permit preparation of financial statements in
conformity with generally accepted accounting principles and to maintain asset
accountability; (iii) access to assets is permitted only in accordance with
management's general or specific authorization; and (iv) the recorded
accountability for assets is compared with the existing assets at reasonable
intervals and appropriate action is taken with respect to any differences.

         (k) The Operative Documents have been, or will be, duly authorized by
all necessary corporate action of the Company and, to the extent that each is a
party thereto, the Guarantors and, when duly executed and delivered by the
Company and the Guarantors and by the other parties thereto, will constitute
legal, valid and binding obligations of the Company and the Guarantors (to the
extent each is a party thereto), enforceable against the Company and the
Guarantors in accordance with their terms, except as the enforcement thereof may
be limited to bankruptcy, insolvency (including, without limitation, all laws
relating to fraudulent transfers), reorganization, moratorium or similar laws
affecting enforcement of creditors' rights generally and except as enforcement
thereof is subject to general principles of equity.

         (l) The Indenture conforms in all material respects to the requirements
of the Trust Indenture Act of 1939, as amended (the "TIA") and to the rules and
regulations of the Commission applicable to an indenture that is qualified
thereunder.

         (m) The Notes and the Note Guarantees have been, or will be, duly
authorized by all necessary corporate action for issuance and sale pursuant to
this Agreement and, when executed, authenticated, issued and delivered in the
manner provided for in the Indenture and sold and paid for as provided in this
Agreement, the Notes and the Note Guarantees will constitute legal, valid and
binding obligations of the Company and the Guarantors entitled to the benefits
of the Indenture and enforceable against the Company and the Guarantors in
accordance with their terms and the terms of the Indenture, except as the
enforcement thereof may be limited to bankruptcy, insolvency (including, without
limitation, all laws relating to fraudulent transfers), reorganization,
moratorium or similar laws affecting enforcement of creditors' rights generally
and except as enforcement thereof is subject to general principles of equity.

         (n) The issuance, offering and sale of the Notes to the Initial
Purchaser by the Company pursuant to this Agreement and the compliance by the
Company and, to the extent each is a party thereto, the Guarantors with the
other provisions of the Operative Documents herein and therein set forth, do not
(i) require the consent, approval, authorization, order, registration or
qualification of, or filing with, any governmental authority or court, or body
or arbitrator having jurisdiction over each of the Company, the Guarantors and
their direct and

                                       4
<PAGE>

indirect subsidiaries or their respective assets or properties, except for any
such consent, approval, authorization, order, registration, qualification or
filing that may be required pursuant to any applicable state security or "blue
sky" laws; or (ii) conflict with, result in a breach or violation of, or
constitute a default under, any indenture, note purchase agreement, credit
agreement, mortgage, deed of trust or loan agreement, or material agreement or
material instrument to which any of the Company, the Guarantors or any of their
direct or indirect subsidiaries is a party or by which any of the Company, the
Guarantors or any of their direct or indirect subsidiaries or any of their
respective properties is bound, or with the charter or by-laws of any of the
Company, the Guarantors or any of their direct or indirect subsidiaries, or any
statute, rule or regulation or any judgment, order or decree of any governmental
authority or court or any arbitrator applicable to the Company, the Guarantors
or any of their direct or indirect subsidiaries, except for any statute, rule or
regulation or any judgment, order or decree of any governmental authority or
court or any arbitrator the noncompliance with which would not result in a
Material Adverse Effect or adversely affect the offering, issuance and sale of
the Notes. Schedule 3 sets forth all material agreements and instruments and as
indicated, certain other agreements by which the Company and/or Guarantors are
bound.

         (o) No legal or governmental proceedings or investigations are pending
or, to the Company's knowledge, threatened to which the Company, the Guarantors
or any of their direct or indirect subsidiaries is a party or to which property
of the Company, the Guarantors or any of their direct or indirect subsidiaries
is subject that are not described in the Preliminary Memorandum or Final
Memorandum, except for such proceedings or investigations that, if the subject
of an unfavorable decision, ruling or finding, would not, individually or in the
aggregate, result in a Material Adverse Effect.

         (p) No relationship, direct or indirect, exists between or among the
Company, the Guarantors or any of their direct or indirect subsidiaries, on the
one hand, and the directors, officers, shareholders, customers or suppliers of
the Company, the Guarantors or any of their direct or indirect subsidiaries on
the other hand, that would be required by the Securities Act to be described in
a prospectus were the Notes being issued and sold in a public offering, that is
not described in the Preliminary Memorandum or the Final Memorandum.

         (q) None of the Company or the Guarantors is now nor after giving
effect to the issuance of the Notes and the execution, delivery and performance
of the Operative Documents and the consummation of the Offering, will be (i)
insolvent, (ii) left with unreasonably small capital with which to engage in its
anticipated businesses or (iii) incurring debts or other obligations beyond its
ability to pay such debts or obligations as they become due.

         (r) Neither the Company nor the Guarantors has distributed and, prior
to the later of (i) the Closing Date and (ii) the completion of the distribution
of the Notes, will distribute any offering material in connection with the
offering and sale of the Notes other than the Preliminary Memorandum, the Final
Memorandum or any amendment or supplement thereto.

         (s) Each of the Company, the Guarantors and their direct and indirect
subsidiaries has good and marketable title in fee simple to all items of real
property and marketable title to all personal property owned by each of them, in
each case except as set forth in the Final Memorandum, free and clear of any
pledge, lien, encumbrance, security interest or other defect

                                       5
<PAGE>

or claim of any third party, except such as would not in the aggregate have a
Material Adverse Effect. Any real property leased by each of the Company, the
Guarantors or any of their direct or indirect subsidiaries, is held under valid,
subsisting and enforceable leases, with such exceptions as do not have a
Material Adverse Effect.

         (t) No "prohibited transaction" (as defined in Section 406 of the
Employee Retirement Income Security Act of 1974, as amended, including the
regulations and published interpretations thereunder ("ERISA"), or Section 4975
of the Internal Revenue Code of 1986, as amended from time to time (the "Code"))
or "accumulated funding deficiency" (as defined in Section 302 of ERISA) or any
of the events set forth in Section 4043(c) of ERISA (other than events with
respect to which the 30-day notice requirement under Section 4043 of ERISA has
been waived) has occurred, exists or is reasonably expected to occur with
respect to any employee benefit plan (as defined in Section 3(3) of ERISA) that
the Company or any of its direct or indirect subsidiaries maintains, contributes
to or has any obligation to contribute to, or with respect to which the Company
or any of its direct or indirect subsidiaries has any liability, direct or
indirect, contingent or otherwise (a "Plan") which would have a Material Adverse
Effect; each Plan is in compliance in all material respects with applicable law,
including ERISA and the Code; the Company or any of its direct or indirect
subsidiaries has not incurred and does not expect to incur liability under Title
IV of ERISA with respect to the termination of, or withdrawal from, any Plan;
and each Plan that is intended to be qualified under Section 401(a) of the Code
is so qualified in all material respects and nothing has occurred, whether by
action or failure to act, which could reasonably be expected to cause the loss
of such qualification. No labor dispute with the employees of the Company or any
of its direct and indirect subsidiaries exists or is threatened or imminent
which could result in a Material Adverse Effect.

         (u) No proceeding looking toward merger, consolidation, liquidation or
dissolution of the Company or the Guarantors, or the sale of all or
substantially all of the assets of the Company, the Guarantors or their direct
or indirect subsidiaries is pending or contemplated, except as set forth in the
Final Memorandum.

         (v) Each of the Company and its direct and indirect subsidiaries owns
or otherwise possesses adequate rights to use all material patents, trademarks,
service marks, trade names and copyrights, licenses, all applications and
registrations for each of the foregoing, and all other material proprietary
rights and confidential information necessary to conduct their respective
businesses as currently conducted; and none of the Company, the Guarantors or
any of their direct or indirect subsidiaries has received any notice, or is
otherwise aware, of any infringement of or conflict with the rights of any third
party with respect to any of the foregoing which, individually or in the
aggregate, if the subject of an unfavorable decision, ruling or finding, would
result in a Material Adverse Effect.

         (w) Each of the Company, the Guarantors and their direct and indirect
subsidiaries is insured by insurers of recognized financial responsibility
against such losses and risks and in such amounts and with such deductibles as
are prudent in the businesses in which they are engaged, except where the
failure to have such would not have a Material Adverse Effect; and none of the
Company, the Guarantors or any of their direct or indirect subsidiaries has any
reason to believe that it will not be able to renew its existing insurance
coverage as and when

                                       6
<PAGE>

such coverage expires or to obtain similar coverage from similar insurers as may
be necessary to continue its business at a cost that would not have a Material
Adverse Effect.

         (x) Each of the Company, the Guarantors and their direct and indirect
subsidiaries possesses all certificates, authorizations and permits required by
federal, state or foreign regulatory authorities to conduct their respective
businesses, except where the failure to have such would not have a Material
Adverse Effect, and none of the Company, the Guarantors and any such subsidiary
has received any notice of proceedings relating to the revocation or
modification of any such certificate, authorization or permit which,
individually or in the aggregate, if the subject of an unfavorable decision,
ruling or finding, would result in a Material Adverse Effect.

         (y) Except as set forth in the Final Memorandum:

                  (i) Each of the Company, the Guarantors and their direct and
         indirect subsidiaries is and has been in compliance with all applicable
         laws, statutes, ordinances, rules, regulations, orders, judgments,
         decisions, decrees, standards, and requirements ("Legal Requirements")
         relating to: human health and safety; pollution; management, disposal
         or release of any chemical substance, product or waste; and protection,
         cleanup, remediation or corrective action relating to the environment
         or natural resources ("Environmental Law");

                  (ii) Each of the Company, the Guarantors and their direct and
         indirect subsidiaries has obtained and is in compliance with the
         conditions of all permits, authorizations, licenses, approvals, and
         variances necessary under any Environmental Law for the continued
         conduct in the manner now conducted of the business of each of the
         Company and any such subsidiary ("Environmental Permits");

                  (iii) There are no past or present conditions or
         circumstances, including but not limited to pending changes in any
         Environmental Law or Environmental Permits, that are reasonably likely
         to interfere with the conduct of the business of each of the Company,
         the Guarantors and their direct and indirect subsidiaries in the manner
         now conducted or which would interfere with compliance with any
         Environmental Law or Environmental Permits; and

                  (iv) There are no past or present conditions or circumstances
         at, or arising out of, the business, assets and properties of each of
         the Company, the Guarantors and their direct and indirect subsidiaries
         or any businesses, assets or properties formerly leased, operated or
         owned by each of the Company, the Guarantors and their direct and
         indirect subsidiaries, including but not limited to on-site or off-site
         disposal or release of any chemical substance, product or waste, which
         may give rise to: (i) liabilities or obligations for any cleanup,
         remediation or corrective action under any Environmental Law; (ii)
         claims arising under any Environmental Law for personal injury,
         property damage, or damage to natural resources; (iii) liabilities or
         obligations incurred by the Company, the Guarantors and their direct
         and indirect subsidiaries to comply with any Environmental Law; or (iv)
         fines or penalties arising under any Environmental Law;

                                       7
<PAGE>

except in each case for any noncompliance or conditions or circumstances that,
individually or in the aggregate, would not result in a Material Adverse Effect.

         (z) No default exists, and no event has occurred that, with notice or
lapse of time or both, would constitute a default in the due performance and
observation of any term, covenant or condition of any indenture, mortgage, deed
of trust, lease or other agreement or instrument to which each of the Company,
the Guarantors and their direct and indirect subsidiaries is a party or by which
the Company, the Guarantors and their direct and indirect subsidiaries, or any
of their respective properties, is bound which would have or which, after notice
or lapse of time or both, would have a Material Adverse Effect.

         (aa) Each of the Company, the Guarantors and their direct and indirect
subsidiaries has filed all foreign, federal, state and local tax returns that
are required to be filed or have requested extensions thereof and have paid all
taxes required to be paid by them and any other assessment, fine or penalty
levied against them, to the extent that any of the foregoing is due and payable,
except for any such assessment, fine or penalty that is currently being
contested in good faith and for which the Company and the Guarantors retain
adequate reserves and except in each case for any noncompliance that,
individually or in the aggregate, would not result in a Material Adverse Effect.

         (bb) Neither the Company, the Guarantors, nor after giving effect to
the sale of the Notes and the application of the proceeds thereof as described
in the Final Memorandum, will be an "investment company", or a company
"controlled" by an "investment company", within the meaning of the Investment
Company Act of 1940, as amended (the "Investment Company Act").

         (cc) None of the Company, the Guarantors, any of their Affiliates (as
defined in Rule 501(b) of Regulation D under the Securities Act ("Regulation
D")), and any person acting on its or their behalf (other than the Initial
Purchaser and its agents, as to which the Company makes no representation or
warranty) has, directly or indirectly, made offers or sales of any security, or
solicited offers to buy any security, under circumstances that would require the
registration of the Notes under the Securities Act.

         (dd) None of the Company, the Guarantors, any of their Affiliates, and
any person acting on its or their behalf (other than the Initial Purchaser and
its agents, as to which the Company makes no representation or warranty) has
engaged in any form of general solicitation or general advertising (within the
meaning of Regulation D) in connection with any offer or sale of the Notes in
the United States.

         (ee) None of the Company, the Guarantors, any of their Affiliates and
any person acting on its or their behalf (other than the Initial Purchaser and
its agents, as to which the Company makes no representation or warranty) has
engaged in any directed selling efforts with respect to the Notes, and each of
them has complied with the offering restrictions requirement of Regulation S
under the Securities Act ("Regulation S"). Terms used in this paragraph have the
meanings given to them by Regulation S.

         (ff) None of the Company, the Guarantors and any of their Affiliates
has taken, directly or indirectly, any action designed to cause or result in, or
which has constituted or which

                                       8
<PAGE>

might reasonably be expected to cause or result in, stabilization or
manipulation of the price of any security of the Company or the Guarantors to
facilitate the sale or resale of the Notes; nor has the Company, the Guarantors
or any of their Affiliates paid or agreed to pay to any person any compensation
for soliciting another to purchase any securities of the Company or the
Guarantors (except as contemplated by this Agreement).

         (gg) The Notes satisfy the eligibility requirements of Rule 144A(d)(3)
under the Securities Act.

         (hh) Assuming the accuracy of the representations and warranties of the
Initial Purchaser in Section 4 hereof and compliance by the Initial Purchaser
with the procedures set forth in Section 4 hereof, it is not necessary, in
connection with the offer, sale and delivery of the Notes to the Initial
Purchaser in the manner contemplated by this Agreement, the Preliminary
Memorandum and the Final Memorandum, to register any of the Notes or the Note
Guarantees under the Securities Act or to qualify the Indenture under the Trust
Indenture Act.

         Each certificate signed by any officer of the Company or the Guarantors
and delivered to the Initial Purchaser or its counsel shall be deemed to be a
representation and warranty by the Company or the Guarantors, as the case may
be, to the Initial Purchaser as to the matters covered thereby.

         3. Purchase, Sale and Delivery of the Notes. On the basis of the
representations, warranties, agreements and covenants herein contained and
subject to the terms and conditions herein set forth, the Company agrees to
issue and sell, and the Initial Purchaser agrees to purchase from the Company,
the aggregate principal amount of Notes at a purchase price equal to 97.000% of
the principal amount thereof. One or more certificates in definitive form or
global form, as instructed by the Initial Purchaser, for the Notes that the
Initial Purchaser has agreed to purchase hereunder, and in such denomination or
denominations and registered in such name or names as the Initial Purchaser
requests upon notice to the Company at least 48 hours prior to the Closing Date,
shall be delivered by or on behalf of the Company to the Initial Purchaser for
the account of the Initial Purchaser, against payment by or on behalf of the
Initial Purchaser of the purchase price therefor by wire transfer in same-day
funds to the account of the Company. Such delivery of and payment for the Notes
shall be made at 10:00 A.M., New York City time, on August 12, 2003, or at such
other time or date as the Initial Purchaser and the Company may agree upon, such
time and date of delivery against payment being herein referred to as the
"Closing Date". The Company will make such certificate or certificates for the
Notes available for checking by the Initial Purchaser at the New York offices of
Shearman & Sterling LLP ("Counsel for the Initial Purchaser") at least 24 hours
prior to the Closing Date.

         4. Offering of the Notes and the Initial Purchaser's Representations
and Warranties. The Initial Purchaser represents and warrants to, and agrees
with, the Company that:

         (a) It is an "accredited investor" (as defined in Rule 501(a)(1), (2),
(3) or (7) under the Securities Act).

         (b) It (and any person acting on its behalf) has not offered or sold,
and it (and any person acting on its behalf) will not offer or sell, any Notes
except (i) to those it reasonably believes to be qualified institutional buyers
(as defined in Rule 144A under the Securities Act)

                                       9
<PAGE>

("QIBs") in transactions meeting the requirements of Rule 144A, or (ii) in
accordance with the restrictions set forth in Regulation S. In connection with
each sale pursuant to clause (i) above, the Initial Purchaser (and any person
acting on its behalf) has taken or will take reasonable steps to ensure that the
purchaser of such Notes is aware that such sale is being made in reliance upon
Rule 144A.

         (c) Neither it nor any person acting on its behalf has made or will
make offers or sales of the Notes other than in accordance with Rule 144A or
Regulation S and therefore not by means of any form of general solicitation or
general advertising (within the meaning of Regulation D).

         (d) At or prior to the confirmation of any sale of any Notes sold in
reliance on Regulation S, it (and any person acting on its behalf) will have
sent to each distributor, dealer or other person receiving a selling concession,
fee or other remuneration that purchases Notes from it during the restricted
period (as defined in Regulation S) a confirmation or notice substantially to
the following effect:

         "The Notes covered hereby have not been registered under the U.S.
Securities Act of 1933, as amended (the "Securities Act"), and may not be
offered or sold within the United States, or to or for the account or benefit of
U.S. persons, (i) as part of their distribution at any time; or (ii) otherwise
until 40 days after the later of the commencement of the offering of the Notes
and August 12, 2003, except in either case in accordance with Regulation S or
Rule 144A under the Securities Act. Terms used above have the meanings given to
them by Regulation S."

         (e) It (i) has not offered or sold and, prior to the expiration of a
period of six months from the closing of the offering of the Notes, will not
offer or sell any Notes to persons in the United Kingdom except to persons whose
ordinary activities involve them in acquiring, holding, managing or disposing of
investments (as principal or agent) for the purposes of their businesses or
otherwise in circumstances which have not resulted and will not result in an
offer to the public in the United Kingdom within the meaning of the Public
Offers of Securities Regulation 1995 (as amended); (ii) has only communicated or
caused to be communicated and will only communicate or cause to be communicated
any invitation or inducement to engage in investment activity (within the
meaning of section 21 of the Financial Services and Markets Act 2000 (the
"FSMA")) received by it in connection with the issue or sale of any Notes in
circumstances in which section 21(1) of the FSMA does not apply to the Company;
and (iii) has complied and will comply with all applicable provisions of the
FSMA with respect to anything done by it in relation to the Notes in, from or
otherwise involving the United Kingdom.

         5. Covenants of the Company and the Guarantors. The Company and the
Guarantors, jointly and severally, covenant and agree with the Initial Purchaser
that:

         (a) The Company will furnish to the Initial Purchaser and to Counsel
for the Initial Purchaser, as soon as reasonably possible, without charge,
during the period referred to in paragraph (c) below, as many copies of the
Final Memorandum and any amendments and supplements thereto as they reasonably
may request. The Company will pay the expenses of printing or other production
of all documents relating to the offering of the Notes and will

                                       10
<PAGE>

reimburse the Initial Purchaser for payment of the required PORTAL (as defined
below) filing fee.

         (b) The Company will not amend or supplement the Final Memorandum prior
to the completion of the distribution of the Notes by the Initial Purchaser
without its prior written consent, which consent will not be unreasonably
withheld or delayed.

         (c) At any time prior to the completion of the distribution of the
Notes by the Initial Purchaser, if any event occurs as a result of which the
Final Memorandum, as then amended or supplemented, would include any untrue
statement of a material fact or omit to state any material fact necessary to
make the statements therein, in light of the circumstances under which they were
made, not misleading, or if it should be necessary to amend or supplement the
Final Memorandum to comply with applicable law, the Company will promptly (i)
notify the Initial Purchaser of the same; (ii) subject to the requirements of
paragraph (b) of this Section 5, prepare and provide to the Initial Purchaser
pursuant to paragraph (a) of this Section 5, an amendment or supplement that
will correct such statement or omission or effect such compliance; and (iii)
supply any supplemented or amended Final Memorandum to the Initial Purchaser and
Counsel for the Initial Purchaser, without charge in such quantities as may be
reasonably requested.

         (d) The Company will (i) qualify the Notes and the Note Guarantees for
sale by the Initial Purchaser under the laws of such jurisdictions as the
Initial Purchaser may designate and (ii) will maintain such qualifications for
so long as required for the sale of the Notes by the Initial Purchaser;
provided, that the Company will not be required to qualify to do business in any
jurisdiction in which it is not then so qualified, to file any general consent
to service of process or to take any other action which would subject it to
general service of process or to taxation in any such jurisdiction where it is
not then so subject. The Company will promptly advise the Initial Purchaser of
the receipt by the Company of any notification with respect to the suspension of
the qualification of the Notes for sale in any jurisdiction or the initiation or
threatening of any proceeding for such purpose.

         (e) At any time prior to the completion of the distribution of the
Notes by the Initial Purchaser, the Company, whenever it, the Guarantors or any
of their subsidiaries publishes or makes available to the public (by filing with
any regulatory authority or securities exchange or by publishing a press release
or otherwise) any information that would reasonably be expected to be material
in the context of the issuance of the Notes under this Agreement, shall promptly
notify the Initial Purchaser as to the nature of such information or event. The
Company will likewise notify the Initial Purchaser of (i) any decrease in the
rating of the Notes or any other debt securities of the Company by any
nationally recognized statistical rating organization (as defined in Rule
436(g)(2) under the Securities Act) or (ii) any notice or public announcement
given of any intended or potential decrease in any such rating or that any such
securities rating agency has under surveillance or review, with possible
negative implications, its rating of the Notes or such other debt securities, as
soon as is reasonably practicable after the Company becomes aware of any such
decrease, notice or public announcement. For so long as the Notes are
outstanding, the Company will also deliver to the Initial Purchaser, as soon as
available and without request, copies of its yearly and quarterly filings under
the Securities Exchange Act of 1934 (the "Exchange Act").

                                       11
<PAGE>

         (f) The Company will not, and will not permit any of its Affiliates to,
resell any of the Notes that have been acquired by any of them, other than
pursuant to an effective registration statement under the Securities Act or in
accordance with Rule 144 under the Securities Act.

         (g) Except as contemplated in the Registration Rights Agreement, none
of the Company or any of its Affiliates, nor any person acting on its or their
behalf (other than the Initial Purchaser or any of its Affiliates, as to whom
the Company makes no covenant) will, directly or indirectly, make offers or
sales of any security, or solicit offers to buy any security, under
circumstances that would require the registration of the Notes under the
Securities Act.

         (h) None of the Company or any of its Affiliates, nor any person acting
on its or their behalf (other than the Initial Purchaser or any of its
Affiliates, as to whom the Company makes no covenant), will engage in any form
of general solicitation or general advertising (within the meaning of Regulation
D) in connection with any offer or sale of the Notes.

         (i) So long as any of the Notes are "restricted securities" within the
meaning of Rule 144(a)(3) under the Securities Act, at any time that the Company
is not then subject to Section 12 or 15(d) of the Exchange Act, the Company will
provide at its expense to each holder of the Notes and to each prospective
purchaser (as designated by such holder) of the Notes, upon the request of such
holder or prospective purchaser any information required to be provided by Rule
144A(d)(4) under the Securities Act. (This covenant is intended to be for the
benefit of the holders, and the prospective purchasers designated by such
holders from time to time, of the Notes.)

         (j) The Company will use its best efforts to cause the Notes to be
designated Private Offerings, Resales and Trading through Automated Linkages
("PORTAL") market securities in accordance with the rules and regulations
adopted by the National Association of Notes Dealers, Inc. relating to trading
in PORTAL and to be eligible for clearance and settlement through DTC.

         (k) The Company will apply the net proceeds from the sale of the Notes
as set forth under "Use of Proceeds" in the Final Memorandum.

         (l) Until completion of the distribution, neither the Company nor any
of its Affiliates will take, directly or indirectly, any action designed to
cause or result in, or which has constituted or which could reasonably be
expected to cause or result in, stabilization or manipulation of the price of
any security of the Company to facilitate the sale or resale of the Notes.

         (m) For so long as any Notes are outstanding, each of the Company, the
Guarantors and their subsidiaries will conduct its operations in a manner that
will not subject the Company, the Guarantors or any such subsidiary to
registration as an investment company under the Investment Company Act.

         (n) Neither the Company nor any of its Affiliates, nor any person
acting on its or their behalf (other than the Initial Purchaser or its agents,
as to which the Company makes no covenant) will engage in any directed selling
efforts with respect to the Notes, and each of them will comply with the
offering restrictions requirement of Regulation S. Terms used in this paragraph
have the meanings given them by Regulation S.

                                       12
<PAGE>

         (o) The Company shall cause each of its direct or indirect subsidiaries
listed in Schedule 4, which the Company and the Guarantors represent to be all
of the Company's direct and indirect domestic subsidiaries existing as of the
date of this Agreement that were reported as discontinued operations in the
Company's audited financial statements for the year ended and as of December 31,
2002, to become Subsidiary Guarantors (as defined in the Indenture) by execution
and delivery to the Trustee of a supplemental indenture pursuant to which such
subsidiary shall assume all obligations of the Subsidiary Guarantors under the
Indenture, the Notes and the Registration Rights Agreement, such supplemental
indenture to be executed and delivered by the Company and the Subsidiary
Guarantors no later than September 30, 2003 (as to each such subsidiary, to the
extent such subsidiary has not been sold by the Company prior to such date).

         (p) The Company shall cause Griffin Acquisition Corp, a Delaware
corporation and Evi-Paq Acquisition Corp, a Delaware corporation to become as
Subsidiary Guarantors (as defined in the Indenture) by execution and delivery to
the Trustee of a supplemental indenture pursuant to which such subsidiary shall
assume all obligations of the Subsidiary Guarantors under the Indenture, the
Notes and the Registration Rights Agreement, such supplemental indenture to be
executed and delivered by the Company and the Subsidiary Guarantors within 30
days of the date of this Agreement (except to the extent such subsidiary is
dissolved prior to the expiration of such 30-day period).

         (q) Each Note will bear a legend substantially to the following effect
until such legend shall no longer be necessary or advisable because the Notes
are no longer subject to the restrictions on transfer described therein:

                  THIS NOTE HAS NOT BEEN REGISTERED UNDER THE U.S. SECURITIES
         ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), AND ACCORDINGLY, MAY
         NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT PURSUANT
         TO AN EFFECTIVE REGISTRATION STATEMENT UNDER, OR AN EXEMPTION FROM THE
         REGISTRATION REQUIREMENTS OF, THE SECURITIES ACT, IN ACCORDANCE WITH
         ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES OR ANY
         OTHER JURISDICTION AND IN ACCORDANCE WITH THE TRANSFER RESTRICTIONS
         CONTAINED IN THE INDENTURE UNDER WHICH THIS NOTE WAS ISSUED.

         6. Expenses. The Company will pay all costs and expenses incident to
the performance of the obligations of the Company under this Agreement, whether
or not the Offering is consummated or this Agreement is terminated pursuant to
Section 10 hereof, including all costs and expenses incident to (i) the printing
or other production of documents with respect to the Offering, including any
costs of printing the Preliminary Memorandum and Final Memorandum and any
amendment or supplement thereto, this Agreement and any blue sky memoranda; (ii)
all arrangements relating to the delivery to the Initial Purchaser of copies of
the foregoing documents; (iii) the fees and disbursements of the counsel, the
accountants, the Trustee and any other experts or advisors retained by the
Company; (iv) preparation, issuance and delivery to the Initial Purchaser of any
certificates evidencing the Notes; (v) the qualification of the Notes under
state securities and blue sky laws, and the maintenance of such qualifications,
including filing fees; (vi) the fees and expenses, if any, incurred in
connection with the

                                       13
<PAGE>

admission of the Notes for trading in the PORTAL market; and (vii) the fees of
any agency that rates the Notes. Whether or not the Offering is consummated or
this Agreement is terminated pursuant to Section 10 hereof, the Initial
Purchaser will pay all of its own costs and expenses (including road show and
counsel fees and disbursements) that shall have been incurred by it in
connection with the proposed purchase and resale of the Notes. The Company shall
not in any event be liable to the Initial Purchaser for the loss of anticipated
profits from the transactions covered by this Agreement.

         7. Conditions to the Initial Purchaser's Obligations. The obligations
of the Initial Purchaser to purchase and pay for the Notes shall be subject to
the accuracy of the representations and warranties of the Company and the
Guarantors in Section 2 hereof, in each case as of the date hereof and as of the
Closing Date, as if made on and as of the Closing Date, to the accuracy of the
statements of the officers of the Company and the Guarantors made pursuant to
the provisions hereof, to the performance by the Company and the Guarantors of
their covenants and agreements hereunder and to the following additional
conditions:

         (a) The Initial Purchaser shall have received an opinion, dated the
Closing Date, of Kane Kessler, P.C., counsel for the Company and the Guarantors,
in form and substance reasonably satisfactory to the Initial Purchaser, to the
effect set forth in Exhibit A hereto.

         (b) The Initial Purchaser shall have received a letter, dated the
Closing Date, of Todd Smith, in-house counsel for the Company and the
Guarantors, in form and substance reasonably satisfactory to the Initial
Purchaser, to the effect set forth in Exhibit B hereto.

         (c) The Initial Purchaser shall have received an opinion, dated the
Closing Date, of Counsel for the Initial Purchaser, with respect to the issuance
and sale of the Notes and such other related matters as the Initial Purchaser
may reasonably require, to the effect set forth in Exhibit B hereto, and the
Company shall have furnished to such counsel such documents as it may reasonably
request for the purpose of enabling it to pass upon such matters.

         (d) The Initial Purchaser shall have received a "comfort letter" from
PricewaterhouseCooper LLP, the independent public accountant for the Company and
the Guarantors, dated as of the date hereof, addressed to the Initial Purchaser
and in form and substance reasonably satisfactory to the Initial Purchaser and
Counsel for the Initial Purchaser. In addition, the Initial Purchaser shall have
received a "bring-down comfort letter" from PricewaterhouseCooper LLP, dated as
of the Closing Date, addressed to the Initial Purchaser and in form and
substance satisfactory to the Initial Purchaser and Counsel for the Initial
Purchaser. References to the Final Memorandum in this paragraph (d) with respect
to either letter referred to above shall include any amendment or supplement
thereto at the date of such letter.

         (e) The Bank Consent shall have been executed and delivered by the
parties under the Existing Credit Agreement and either the aggregate commitment
of the lenders under the Existing Credit Agreement shall have been reduced to
$60 million or the Existing Credit Agreement shall have been terminated.

                                       14
<PAGE>

         (f) The Initial Purchaser shall have received a certificate, dated the
Closing Date, of the Chief Operating Officer and Chief Financial Officer and the
Treasurer of the Company and of a Vice President of each Guarantor to the effect
that:

                  (i) the representations and warranties of the Company and the
         Guarantors in this Agreement are true and correct as if made on and as
         of the Closing Date; the Final Memorandum, as amended or supplemented
         as of the Closing Date, does not include any untrue statement of a
         material fact or omit to state any material fact necessary in order to
         make the statements therein, in light of the circumstances under which
         they were made, not misleading; and the Company and the Guarantors have
         performed all covenants and agreements and satisfied all conditions on
         their part to be performed or satisfied at or prior to the Closing
         Date; and

                  (ii) none of the Company or any of its subsidiaries has
         sustained any loss or interference with their respective businesses or
         properties from fire, flood, hurricane, accident or other calamity,
         whether or not covered by insurance, or from any labor dispute or any
         legal or governmental proceeding that is material to the Company, the
         Guarantors and their subsidiaries, and there has not been any material
         adverse change in the business, operations, properties, assets,
         liabilities, net worth or condition (financial or otherwise) of the
         Company and its subsidiaries, taken as a whole, except in each case as
         described in or contemplated by the Final Memorandum (exclusive of any
         amendment or supplement thereto).

         (g) The Notes shall have received initial ratings of not less than B+
by Standard & Poor's and B1 by Moody's, and, subsequent to the Execution Date,
there shall not have been any decrease in the rating of the Notes by any
"nationally recognized statistical rating organization" (as defined for purposes
of Rule 436(g)(2) under the Securities Act) or any notice or public announcement
given by any such organization of any intended or potential decrease in any such
rating or that any such securities rating agency has under surveillance or
review, with possible negative implications, its rating of the Notes.

         (h) The Registration Rights Agreement shall have been executed and
delivered by the Company and the Guarantors.

         (i) On or before the Closing Date, the Initial Purchaser and Counsel
for the Initial Purchaser shall have received such further certificates,
documents or other information as they may have reasonably requested from the
Company and the Guarantors customary for a transaction of this type.

         All opinions, certificates, letters and documents delivered pursuant to
this Agreement will comply with the provisions hereof only if they are
reasonably satisfactory to the Initial Purchaser and Counsel for the Initial
Purchaser. The Company shall furnish to the Initial Purchaser such conformed
copies of such opinions, certificates, letters and documents in such quantities
as the Initial Purchaser and Counsel for the Initial Purchaser shall reasonably
request.

         8. Indemnification and Contribution. (a) The Company and the
Guarantors, jointly and severally, agree to indemnify and hold harmless the
Initial Purchaser and each person, if any,

                                       15
<PAGE>

who controls (within the meaning of Section 15 of the Securities Act or Section
20 of the Exchange Act) the Initial Purchaser against any losses, claims,
damages or liabilities, joint or several, to which the Initial Purchaser or such
controlling person may become subject under the Securities Act or otherwise,
insofar as such losses, claims, damages or liabilities (or actions in respect
thereof) arise out of or are based upon (i) any untrue statement or alleged
untrue statement of any material fact contained in the Preliminary Memorandum or
the Final Memorandum or any amendment or supplement thereto; or (ii) the
omission or alleged omission to state in the Preliminary Memorandum or the Final
Memorandum or any amendment or supplement thereto, a material fact required to
be stated therein or necessary to make the statements therein not misleading,
and will reimburse, as incurred, the Initial Purchaser and each such controlling
person for any legal or other expenses reasonably incurred by the Initial
Purchaser or such controlling person in connection with investigating, defending
against or appearing as a third-party witness in connection with any such loss,
claim, damage, liability or action; provided, that the Company and the
Guarantors will not be liable in any such case to the extent that any such loss,
claim, damage or liability arises out of or is based upon any untrue statement
or alleged untrue statement or omission or alleged omission made in any
Preliminary Memorandum, the Final Memorandum or any amendment or supplement
thereto, in reliance upon and in conformity with written information furnished
to the Company by the Initial Purchaser specifically for use therein as set
forth in Section 11 hereof. The Company and the Guarantors will not, without the
prior written consent of the Initial Purchaser, settle or compromise or consent
to the entry of any judgment in any pending or threatened claim, action, suit or
proceeding in respect of which indemnification may be sought hereunder (whether
or not the Initial Purchaser or any person who controls any such Initial
Purchaser within the meaning of Section 15 of the Act or Section 20 of the
Exchange Act is a party to such claim, action, suit or proceeding) unless such
settlement, compromise or consent includes an unconditional release of the
Initial Purchaser and such controlling persons from all liability arising out of
such claim, action, suit or proceeding.

         (b) The Initial Purchaser will indemnify and hold harmless the Company
and the Guarantors, their respective directors, officers, and each person, if
any, who controls any of the Company and the Guarantors within the meaning of
Section 15 of the Securities Act or Section 20 of the Exchange Act against any
losses, claims, damages or liabilities to which the Company, the Guarantors, any
such directors or officers of the Company and the Guarantors or any such
controlling person of the Company and the Guarantors may become subject under
the Securities Act or otherwise, insofar as such losses, claims, damages or
liabilities (or actions in respect thereof) arise out of or are based upon (i)
any untrue statement or alleged untrue statement of any material fact contained
in the Preliminary Memorandum or the Final Memorandum or any amendment or
supplement thereto, or (ii) the omission or the alleged omission to state
therein a material fact required to be stated in the Preliminary Memorandum or
the Final Memorandum or any amendment or supplement thereto, necessary to make
the statements therein not misleading, in each case to the extent, but only to
the extent, that such untrue statement or alleged untrue statement or omission
or alleged omission was made in reliance upon and in conformity with written
information furnished to the Company by or on behalf of the Initial Purchaser
specifically for use therein as set forth in Section 11 hereof, and subject to
the limitation set forth immediately preceding this clause, will reimburse as
incurred, any legal or other expenses reasonably incurred by the Company or the
Guarantors or any such directors or officers or such controlling person in
connection with investigating, defending against or appearing as a third

                                       16
<PAGE>

party witness in connection with, any such loss, claim, damage, liability or
action in respect thereof. The Initial Purchaser will not, without the prior
written consent of the Company and the Guarantors, settle or compromise or
consent to the entry of any judgment in any pending or threatened claim, action,
suit or proceeding in respect of which indemnification may be sought hereunder
(whether or not the Company or the Guarantor or any person who controls any of
the Company or the Guarantors within the meaning of Section 15 of the Act or
Section 20 of the Exchange Act is a party to such claim, action, suit or
proceeding) unless such settlement, compromise or consent includes an
unconditional release of all of the Company and the Guarantors and such
controlling persons from all liability arising out of such claim, action, suit
or proceeding.

         (c) Promptly after receipt by an indemnified party under this Section 8
of notice of the commencement of any action, such indemnified party will, if a
claim in respect thereof is to be made against an indemnifying party under this
Section 8, notify such indemnifying party of the commencement thereof; but the
failure so to notify such indemnifying party will not relieve such indemnifying
party from any liability which it may have to such indemnified party otherwise
than under this Section 8. In case any such action is brought against any
indemnified party, and such indemnified party notifies the relevant indemnifying
party of the commencement thereof, such indemnifying party will be entitled to
participate therein and, to the extent that it may wish, to assume the defense
thereof, jointly with any other indemnifying party similarly notified, with
counsel satisfactory to such indemnified party; provided, that if the defendants
in any such action include both the indemnified party and the indemnifying party
and the indemnified party shall have reasonably concluded, based on advice of
outside counsel, that there may be one or more legal defenses available to it
and/or other indemnified parties which are different from or additional to those
available to the indemnifying party, the indemnifying party shall not have the
right to direct the defense of such action on behalf of such indemnified party
or parties and such indemnified party or parties shall have the right to select
separate counsel to defend such action on behalf of such indemnified party or
parties. After notice from an indemnifying party to an indemnified party of its
election so to assume the defense thereof and approval by such indemnified party
of counsel appointed to defend such action, such indemnifying party will not be
liable to such indemnified party under this Section 8 for any legal or other
expenses, other than reasonable costs of investigation, subsequently incurred by
such indemnified party in connection with the defense thereof, unless (i) such
indemnified party shall have employed separate counsel in accordance with the
proviso to the next preceding sentence or (ii) such indemnifying party does not
promptly retain counsel satisfactory to such indemnified party or (iii) such
indemnifying party has authorized the employment of counsel for such indemnified
party at the expense of the indemnifying party. After such notice from an
indemnifying party to an indemnified party, such indemnifying party will not be
liable for the costs and expenses of any settlement of such action effected by
such indemnified party without the consent of such indemnifying party.

         (d) In circumstances in which the indemnity agreement provided for in
the preceding paragraphs of this Section 8 is unavailable or insufficient, for
any reason, to hold harmless an indemnified party in respect of any losses,
claims, damages or liabilities (or actions in respect thereof) ("Losses"), the
Company and the Guarantors, on the one hand, and the Initial Purchaser, on the
other, in order to provide for just and equitable contribution, agree to
contribute to the amount paid or payable by such indemnified party as a result
of such Losses to which the

                                       17
<PAGE>

Company and the Guarantors, on the one hand, and the Initial Purchaser, on the
other, may be subject, in such proportion as is appropriate to reflect (i) the
relative benefits received by the Company and the Guarantors, on the one hand,
and the Initial Purchaser, on the other, from the offering of the Notes or (ii)
if the allocation provided by the foregoing clause (i) is unavailable for any
reason, not only such relative benefits but also the relative fault of the
Company and the Guarantors, on the one hand, and the Initial Purchaser, on the
other, in connection with the statements or omissions or alleged statements or
omissions that resulted in such Losses. The relative benefits received by the
Company and the Guarantors on the one hand and the Initial Purchaser on the
other shall be deemed to be in the same proportion as the net proceeds from the
offering received by the Company and the Guarantors bear to the total
underwriting discounts and commissions received by the Initial Purchaser from
the Company in connection with the purchase of the Notes hereunder. The relative
fault of the parties shall be determined by reference to, among other things,
whether the untrue or alleged untrue statement of a material fact or the
omission or alleged omission to state a material fact relates to information
supplied by the Company, the Guarantors or the Initial Purchaser, the parties'
intent, relative knowledge, access to information and opportunity to correct or
prevent such statement or omission, and any other equitable considerations
appropriate in the circumstances. The Company, the Guarantors and the Initial
Purchaser agree that it would not be just and equitable if contribution were
determined by pro rata allocation or by any other method of allocation that does
not take into account the equitable considerations referred to above.
Notwithstanding any other provision of this paragraph (d), the Initial Purchaser
shall not be obligated to make contributions hereunder that in the aggregate
exceed the total underwriting discounts and commissions received by the Initial
Purchaser from the Company in connection with the purchase of the Notes
hereunder, and no person guilty of fraudulent misrepresentation (within the
meaning of Section 11(f) of the Securities Act) shall be entitled to
contribution from any person who was not guilty of such fraudulent
misrepresentation. For purposes of this paragraph (d), each person, if any, who
controls the Initial Purchaser within the meaning of Section 15 of the
Securities Act or Section 20 of the Exchange Act shall have the same rights to
contribution as the Initial Purchaser, and each director or officer of the
Company or the Guarantors and each person, if any, who controls the Company or
the Guarantors within the meaning of Section 15 of the Securities Act or Section
20 of the Exchange Act, shall have the same rights to contribution as the
Company or the Guarantors, respectively.

         (e) The obligations of the Company and the Guarantors under this
Section 8 shall be in addition to any liability that the Company and the
Guarantors may otherwise have and the obligations of the Initial Purchaser under
this Section 8 shall be in addition to any liability that the Initial Purchaser
may otherwise have.

                                       18
<PAGE>

         9. Survival. The respective representations, warranties, agreements,
covenants, indemnities and other statements of the Company and the Guarantors,
their respective officers, and the Initial Purchaser set forth in this Agreement
or made by or on behalf of it pursuant to this Agreement shall remain in full
force and effect, regardless of (i) any investigation made by or on behalf of
the Company, the Guarantors, any of their respective officers, directors or
subsidiaries or any controlling person referred to in Section 8 hereof or the
Initial Purchaser and (ii) delivery of and payment for the Notes. The respective
agreements, covenants, indemnities and other statements set forth in Sections 6
and 8 hereof shall remain in full force and effect, regardless of any
termination or cancellation of this Agreement.

         10. Termination. (a) This Agreement may be terminated in the discretion
of the Initial Purchaser by notice to the Company given at any time at or prior
to the Closing Date in the event that the Company or the Guarantors shall have
failed, refused or if unable as of Closing to perform all obligations and
satisfy all conditions required on its part to be performed or satisfied
hereunder at or prior thereto or if, at or prior to the Closing Date (i) trading
in the Company's common stock shall have been suspended by the Commission or
trading in securities generally on the New York Stock Exchange or the Nasdaq
National Market shall have been suspended or minimum or maximum prices shall
have been established on any such exchange or market; (ii) a banking moratorium
shall have been declared by New York or United States authorities or there has
been a material disruption in securities settlement, payment or clearance
services in the United States; or (iii) there shall have been (A) an outbreak or
escalation of hostilities between the United States and any foreign power, (B)
an outbreak or escalation of any other insurrection or armed conflict involving
the United States or (C) any other calamity or crisis or material adverse change
in general economic, political or financial conditions which has an effect on
the U.S. financial markets, in each case, which, in the sole judgment of the
Initial Purchaser, makes it impracticable or inadvisable to proceed with the
offer, sale and delivery of the Notes as contemplated by the Final Memorandum.

         (b) Termination of this Agreement pursuant to this Section 10 shall be
without liability of any party to any other party except as provided in Section
8 hereof.

         11. Information Supplied by Initial Purchaser. The statements set forth
in (i) the second and third sentences of the second paragraph and (ii) the
seventh paragraph, in each case, under the heading "Plan of Distribution" in the
Preliminary Memorandum and the Final Memorandum, to the extent such statements
relate to the Initial Purchaser, constitute the only information furnished by
the Initial Purchaser to the Company for the purposes of Sections 2(a) and 8
hereof.

         12. Notices. All communications hereunder shall be in writing and, if
sent to any of the Initial Purchaser, shall be delivered or sent by mail, telex
or facsimile transmission and confirmed in writing to Wachovia Capital Markets,
LLC, One Wachovia Center, 301 South College Street, Charlotte, North Carolina
28288-0604, Attention: High Yield Origination, and, if sent to the Company or
the Guarantors, shall be delivered or sent by mail, telex or facsimile
transmission and confirmed in writing to the Company at Armor Holdings, Inc., at
1400 Marsh Landing Parkway, Suite 112, Jacksonville, Florida 32250, Attn: Chief
Financial Officer, and copied to Kane Kessler, P.C., at 1350 Avenue of the
Americas, 26th Floor, New York, New York 10019, Attn: Robert L. Lawrence.

                                       19
<PAGE>

       13. Successors. This Agreement shall inure to the benefit of and shall be
binding upon the Initial Purchaser, the Company and the Guarantors and their
respective successors and legal representatives, and nothing expressed or
mentioned in this Agreement is intended or shall be construed to give any other
person any legal or equitable right, remedy or claim under or in respect of this
Agreement, or any provisions herein contained, this Agreement and all conditions
and provisions hereof being intended to be and being for the sole and exclusive
benefit of the Initial Purchaser, the Company and the Guarantors and their
respective successors and legal representatives, and for the benefit of no other
person, except that (i) the indemnities of the Company and the Guarantors
contained in Section 8 of this Agreement shall also be for the benefit of any
person or persons who control the Initial Purchaser within the meaning of
Section 15 of the Securities Act or Section 20 of the Exchange Act and (ii) the
indemnities of the Initial Purchaser contained in Section 8 of this Agreement
shall also be for the benefit of the directors and officers of the Company and
the Guarantors, and any person or persons who control the Company or the
Guarantors within the meaning of Section 15 of the Securities Act or Section 20
of the Exchange Act.

         14. Applicable Law. The validity and interpretation of this Agreement,
and the terms and conditions set forth herein, shall be governed by and
construed in accordance with the laws of the State of New York.

         15. Consent to Jurisdiction and Service of Process. (a) All judicial
proceedings arising out of or relating to this Agreement may be brought in any
state or federal court of competent jurisdiction in the State and County of New
York, which jurisdiction is non-exclusive.

         (b) Each party agrees that any service of process or other legal
summons in connection with any proceeding may be served on it by mailing a copy
thereof by registered mail, or a form of mail substantially equivalent thereto,
postage prepaid, addressed to the served party at its address as provided for in
Section 12 hereof. Nothing in this Section shall affect the right of the parties
to serve process in any other manner permitted by law.

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

                 [Remainder of page intentionally left blank.]

                                       20
<PAGE>

         If the foregoing correctly sets forth our understanding, please
indicate your acceptance thereof in the space provided below for that purpose,
whereupon this letter shall constitute an agreement binding the Company, the
Guarantors and the Initial Purchaser.

                                       Very truly yours,

                                       ARMOR HOLDINGS, INC.

                                       By:
                                            ------------------------------------
                                            Name: Robert R. Schiller
                                            Title: Chief Operating Officer,
                                            Chief Financial Officer
                                            and Secretary

                                      S-1
<PAGE>

                                  SUBSIDIARY GUARANTORS

                                  911EP, INC.,
                                     a Delaware corporation

                                  By:
                                     -------------------------------------------
                                       Name: Robert R. Schiller
                                       Title: Vice President

                                  AHI PROPERTIES I, INC.,
                                       a Delaware corporation

                                  By:
                                     -------------------------------------------
                                       Name: Robert R. Schiller
                                       Title: Vice President

<PAGE>

                                  ARMOR BRANDS, INC.,
                                       a Delaware corporation

                                  By:
                                     -------------------------------------------
                                       Name: Robert R. Schiller
                                       Title: Vice President

                                  ARMOR HOLDINGS FORENSICS, INC.,
                                       a Delaware corporation

                                  By:
                                     -------------------------------------------
                                       Name: Robert R. Schiller
                                       Title: Vice President

                                  ARMOR HOLDINGS GP, LLC,
                                       a Delaware company

                                  By:
                                     -------------------------------------------
                                       Name: Robert R. Schiller
                                       Title: Vice President

                                  ARMOR HOLDINGS LP, LLC,
                                       a Delaware company

                                  By:
                                     -------------------------------------------
                                       Name: Robert R. Schiller
                                       Title: Vice President

<PAGE>

                                  ARMOR HOLDINGS MOBILE SECURITY, L.L.C.,
                                       a Delaware company

                                  By:
                                     -------------------------------------------
                                       Name: Robert R. Schiller
                                       Title: Vice President

                                  ARMOR HOLDINGS PAYROLL SERVICES, LLC,
                                       a Delaware company

                                  By:
                                     -------------------------------------------
                                       Name: Robert R. Schiller
                                       Title: Manager

                                  ARMOR HOLDINGS PRODUCTS, INC.,
                                       a Delaware corporation

                                  By:
                                     -------------------------------------------
                                       Name: Robert R. Schiller
                                       Title: Vice President

                                  ARMOR HOLDINGS PROPERTIES, INC.,
                                       a Delaware corporation

                                  By:
                                     -------------------------------------------
                                       Name: Robert R. Schiller
                                       Title: Vice President

<PAGE>

                                  ARMOR SAFETY PRODUCTS COMPANY,
                                       a Delaware corporation

                                  By:
                                     -------------------------------------------
                                       Name: Robert R. Schiller
                                       Title: Vice President

                                  B-SQUARE, INC.,
                                       a Texas corporation

                                  By:
                                     -------------------------------------------
                                       Name: Robert R. Schiller
                                       Title: Vice President

                                  BREAK-FREE ARMOR CORP.,
                                       a Delaware corporation

                                  By:
                                     -------------------------------------------
                                       Name: Robert R. Schiller
                                       Title: Vice President

                                  BREAK-FREE, INC.,
                                       a Delaware corporation

                                  By:
                                     -------------------------------------------
                                       Name: Robert R. Schiller
                                       Title: Vice President

                                  CASCO INTERNATIONAL, INC.,
                                       a New Hampshire corporation

<PAGE>

                                  By:
                                     -------------------------------------------
                                       Name: Robert R. Schiller
                                       Title: Vice President

                                  DEFENSE TECHNOLOGY CORPORATION OF AMERICA,
                                       a Delaware corporation

                                  By:
                                     -------------------------------------------
                                       Name: Robert R. Schiller
                                       Title: Vice President

                                  INDENTICATOR, INC.,
                                       a Delaware corporation

                                  By:
                                     -------------------------------------------
                                       Name: Robert R. Schiller
                                       Title: Vice President

                                  MONADNOCK LIFETIME PRODUCTS, INC. (DE),
                                       a Delaware corporation

                                  By:
                                     -------------------------------------------
                                       Name: Robert R. Schiller
                                       Title: Vice President

                                  MONADNOCK LIFETIME PRODUCTS, INC. (NH),
                                       a New Hampshire corporation

<PAGE>

                                  By:
                                     -------------------------------------------
                                       Name: Robert R. Schiller
                                       Title: Vice President

                                  MONADNOCK POLICE TRAINING COUNCIL, INC.,
                                       a New Hampshire corporation

                                  By:
                                     -------------------------------------------
                                       Name: Robert R. Schiller
                                       Title: Vice President

                                  NAP PROPERTIES, LTD.,
                                       a California limited partnership

                                  By:  NAP PROPERTY MANAGERS, LLC,
                                       its General Partner

                                  By:  ARMOR HOLDINGS PROPERTIES, INC.,
                                       its Managing Member

                                  By:
                                     -------------------------------------------
                                       Name: Robert R. Schiller
                                       Title: Vice President

                                  NAP PROPERTY MANAGERS, LLC,
                                       a California company

                                  By:  ARMOR HOLDINGS PROPERTIES, INC.,
                                       its Managing Member

                                  By:
                                     -------------------------------------------
                                       Name: Robert R. Schiller
                                       Title: Vice President

<PAGE>

                               O'GARA-HESS & EISENHARDT ARMORING COMPANY, L.L.C.
                                     a Delaware company

                               By:
                                   -------------------------------------------
                                    Name: Robert R. Schiller
                                    Title: Vice President

                               PRO-TECH ARMORED PRODUCTS OF MASSACHUSETTS, INC.,
                                    a Massachusetts corporation

                               By:
                                   -------------------------------------------
                                    Name: Robert R. Schiller
                                    Title: Vice President

                               RAMTECH DEVELOPMENT CORP.,
                                    a Delaware corporation

                               By:
                                   -------------------------------------------
                                    Name: Robert R. Schiller
                                    Title: Vice President

                               SAFARI LAND LTD, INC.,
                                    a California corporation

                               By:
                                   -------------------------------------------
                                    Name: Robert R. Schiller
                                    Title: Vice President

<PAGE>

                               SAFARILAND GOVERNMENT SALES, INC.,
                                    a California corporation

                               By:
                                   -------------------------------------------
                                    Name: Robert R. Schiller
                                    Title: Vice President

                               SPEEDFEED ACQUISITION CORP.,
                                      a Delaware corporation

                                 By:
                                     -----------------------------------------
                                      Name: Robert R. Schiller
                                      Title: Vice President

                                 THE O'GARA COMPANY,
                                      an Ohio company

                                 By:
                                     -----------------------------------------
                                      Name: Robert R. Schiller
                                      Title: Vice President

The foregoing Agreement is hereby
confirmed and accepted as of the
date first written above.

WACHOVIA CAPITAL MARKETS, LLC

By:__________________________
     Name:
     Title

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00055-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00055-of-00352.parquet"}]]