Document:

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                                                                   EXHIBIT 10.16

This Instrument was prepared by,
and when recorded, return to:

Juliane M. Dziobak, Esq.
Edwards Angell Palmer & Dodge LLP
2800 Financial Plaza
Providence, Rhode Island 02903

               FIRST AMENDMENT TO MORTGAGE AND SECURITY AGREEMENT

     THIS FIRST AMENDMENT TO MORTGAGE AND SECURITY AGREEMENT (this "AMENDMENT")
is made as of the 8th day of November, 2006, by

     SMITH & WESSON CORP., a Delaware corporation having a principal place of
business at 2100 Roosevelt Avenue, Springfield, Massachusetts ("GRANTOR"); and

     TD BANKNORTH, N.A. (as successor-by-merger to Banknorth, N.A.), a national
banking association with an office at 1441 Main Street, Springfield,
Massachusetts ("GRANTEE").

                                WITNESSETH THAT:

     WHEREAS, Grantor executed and delivered a certain Mortgage and Security
Agreement dated as of January 11, 2005 (as may have been amended from time to
time, the "MORTGAGE") in favor of Grantee, which Mortgage was recorded with the
Southern Aroostook County, Maine Registry of Deeds in Book 4074, Page 60 (all
capitalized terms used in this Amendment without definition shall have the
identical meanings given to such terms in the Mortgage); and

     WHEREAS, pursuant to the Mortgage, Grantor gave, granted, bargained, sold
and conveyed to Grantee, the Real Property and Collateral described therein
(collectively referred to herein as the "MORTGAGED PROPERTY");

     WHEREAS the Real Property is more particularly described on Schedule A
attached hereto and made a part hereof; and

     WHEREAS, the Mortgage was executed for the purpose of securing, inter alia,
the payment of the following promissory notes by Grantor in favor of Grantee (i)
Revolving Line of Credit Note in the original principal amount of Seventeen
Million and 00/100 Dollars ($17,000,000.00) (the "ORIGINAL REVOLVING NOTE"),
(ii) Commercial Term Promissory Note in the original principal amount of Twelve
Million One Hundred and Four Thousand and 00/100 Dollars ($12,104,000.00), (iii)
Equipment Line of Credit Note in the original principal amount of Five Million
and 00/100 Dollars ($5,000,000.00) (individually, the "ORIGINAL EQUIPMENT LINE
NOTE") and (iv) Commercial Real Estate Term Promissory Note in the original
principal amount of Five Million Eight Hundred Ninety-Six Thousand and 00/100
Dollars ($5,896,000.00), each dated as of January 11, 2005, and each as may be
amended from time to time (collectively, the

<PAGE>

"ORIGINAL NOTES") with respect to certain indebtedness, obligations and
liabilities of Grantor under a certain Loan and Security Agreement dated as of
January 11, 2005, among Grantor and Grantee, as the same may have been amended
from time to time (the "ORIGINAL LOAN AGREEMENT"); and

     WHEREAS, contemporaneously herewith, the Original Loan Agreement is being
amended and restated in its entirety pursuant to the terms of a certain Amended
and Restated Loan and Security Agreement by and among Grantor, Grantee, and
Smith & Wesson Holding Corporation, a Nevada corporation ("HOLDINGS") (as such
Amended and Restated Loan and Security Agreement may be further amended,
restated and supplemented from time to time, the "AMENDED LOAN AGREEMENT"); and

     WHEREAS, pursuant to the Amended Loan Agreement, (a) Grantee has amended
and restated the Original Equipment Line Note by executing that certain Amended
and Restated Equipment Line of Credit Note dated as of November 8, 2006 (as the
same may be further amended, extended, supplemented, reissued, restated or
otherwise modified, the "RESTATED EQUIPMENT LINE NOTE "), (b) Grantee has
amended and restated the Original Revolving Note by executing that certain
Amended and Restated Revolving Line of Credit Note dated as of November 8, 2006
(as the same be further amended, extended, supplemented, reissued, restated or
otherwise modified, the "RESTATED REVOLVING NOTE"), and (c) Grantee has agreed
to make an acquisition line of credit loan to Grantor contemporaneously herewith
in the aggregate principal amount of up to Thirty Million Dollars ($30,000,000)
and the Grantor has issued to the Grantee to evidence its indebtedness in
respect to such acquisition line of credit loan its Acquisition Line Note dated
as of November 8, 2006 in the aggregate principal amount of Thirty Million
Dollars and 00/100 ($30,000,000.00) (as the same may be amended, extended,
supplemented, reissued, restated or otherwise modified from time to time, the
"ACQUISITION NOTE"); and

     WHEREAS, the Original Notes (other than the Restated Equipment Line Note
and the Restated Revolving Note) will continue to evidence the outstanding
unpaid principal balance of the Original Notes; and

     WHEREAS, the Restated Equipment Line Note and the Restated Revolving Note
will evidence the outstanding unpaid principal balance of the Original Equipment
Line Note and the Original Revolving Note, respectively; and

     WHEREAS, the Acquisition Note will evidence certain additional indebtedness
incurred by the Grantor, pursuant to the Amended Loan Agreement; and

     WHEREAS, the Mortgage provides that the Mortgage was given to secure, not
only Grantor's obligations which existed as of the date of execution of the
Mortgage, but also the payment of any and all future obligations which Grantor
might thereafter owe to the Grantee; and

     WHEREAS, the parties desire to enter into this Amendment for the purposes
of evidencing their agreement and understanding that the Mortgage, as amended
hereby, is intended to secure and benefit all indebtedness, obligations and
liabilities of Grantor under the Original

                                       -2-

<PAGE>

Loan Agreement, as amended and restated by the Amended Loan Agreement, and of
the Grantor under the Original Notes, the Restated Equipment Line Note, the
Restated Revolving Note, and under the Acquisition Line Note, and any and all
promissory notes which may hereafter be executed from time to time to evidence
such indebtedness;

     NOW, THEREFORE, in consideration of the premises, and for other good and
valuable consideration, the receipt and adequacy of which are hereby
acknowledged, the parties hereto hereby enter into this Amendment and hereby
amend the Mortgage as follows:

     1. Amendment to Definitions.

     (a) The defined terms set forth in the Preamble and Recitals to this
Amendment are hereby added to the Mortgage with the respective meanings given to
such terms in such Preamble.

     (b) The definitions of "Loan Agreement" and "Notes", are hereby amended to
read in their entirety, respectively, as follows:

          "Loan Agreement" shall mean the Original Loan Agreement as amended and
     restated by the Amended Loan Agreement (i.e., that certain Amended and
     Restated Loan and Security Agreement dated November 8, 2006 by and among
     Grantor, as borrower, Holdings, as guarantor, and Grantee), and as the same
     may be further amended, restated, extended, supplemented or otherwise
     modified from time to time.

          "Notes" shall mean (a) the Commercial Term Promissory Note dated
     January 11, 2005 in the original principal amount of Twelve Million One
     Hundred and Four Thousand and 00/100 Dollars ($12,104,000.00), (b) the
     Commercial Real Estate Term Promissory Note dated January 11, 2005 in the
     original principal amount of Five Million Eight Hundred Ninety-Six Thousand
     and 00/100 Dollars ($5,896,000.00), (c) the Amended and Restated Equipment
     Line of Credit Note dated November 8, 2006 in the original principal amount
     of Five Million and 00/100 Dollars ($5,000,000.00), (d) the Amended and
     Restated Revolving Line of Credit Note dated November 8, 2006 in the
     original principal amount of Seventeen Million and 00/100 Dollars
     ($17,000,000,00), and (e) the Acquisition Line of Credit Note dated
     November 8, 2006 in the original principal amount of Thirty Million and
     00/100 Dollars ($30,000,000.00) made by Grantor to Grantor pursuant to the
     Amended Loan Agreement), each as may be amended, restated, extended,
     supplemented or otherwise modified from time to time, and as the same may
     be reissued from time to time to successors and assigns of the Grantee.

     2. Definition of Obligations Secured. The parties hereto hereby acknowledge
and agree that all indebtedness, obligations and liabilities of Grantor and
Holdings under the Amended Loan Agreement (including, without limitation, the
Cash Management Obligations, the Foreign Exchange Obligations, and the Swap
Obligations, all as defined in the Amended Loan Agreement), the Original Notes,
the Restated Equipment Line Note, the Restated Revolving Note and the
Acquisition Line Note, constitute "Obligations" of Grantor as defined in and for
the purposes of the Mortgage, and any and all future advances made by Grantee to

                                       -3-

<PAGE>

Grantor or Holdings or as evidenced by notes executed or to be executed by
Grantor as maker or co-maker shall constitute "future advances" or "future
loans" as defined in and for the purposes of the Mortgage.

     3. Representations and Warranties. Grantor hereby represents and warrants
to Grantee that:

          A. Each representation and warranty of Grantor set forth in the
Mortgage, as amended hereby, is hereby restated and affirmed as true and correct
as of the date hereof;

          B. Grantor has the power and authority to enter into this Amendment
and all other agreements contemplated hereby, and to do all acts and things as
are required or contemplated hereunder to be done, observed and performed by
Grantor;

          C. Each of this Amendment and all other agreements to be executed by
Grantor and contemplated hereby has been duly authorized (by all necessary
company action and otherwise), validly executed and delivered by Grantor and
constitutes the legal, valid and binding obligation of Grantor enforceable
against it in accordance with its terms;

          D. The execution and delivery of this Amendment and all other
agreements to be executed by Grantor and contemplated hereby and Grantor's
performance hereunder and thereunder do not and will not require the consent or
approval of any governmental authority, nor be in contravention of or in
conflict with the Grantor's articles or certificate of incorporation or bylaws
or operating agreement, or the provisions of any statute, or any judgment,
order, or indenture, instrument, agreement, or undertaking, to which Grantor is
a party or by which Grantor or its assets or properties are or may become bound.

     4. Reaffirmation. Except as amended hereby, the Mortgage shall remain in
full force and effect and is in all respects hereby ratified and affirmed.

                      (The next page is the signature page)

                                       -4-

<PAGE>

     IN WITNESS WHEREOF, this First Amendment to Mortgage and Security Agreement
has been duly executed by Grantor and Grantee by their respective duly
authorized representatives as an instrument under seal as of the day and year
first above written.

                                        Grantor:

                                        SMITH & WESSON CORP.

/s/ Deborah A. Roe                      By /s/ John A. Kelly
------------------------------------       -------------------------------------
Witness                                    John A. Kelly
                                           Vice President and Chief Financial
                                           Officer

                          COMMONWEALTH OF MASSACHUSETTS

Hampden County, ss.

     On this 8th day of November, 2006, before me, the undersigned Notary
Public, personally appeared the above-named John A. Kelly, proved to me by
satisfactory evidence of identification, being (check whichever applies): [ ]
driver's license or other state or federal governmental document bearing a
photographic image, [ ] oath or affirmation of a credible witness known to me
who knows the above signatory, or [X] my own personal knowledge of the identity
of the signatory, to be the person whose name is signed above, and acknowledged
the foregoing to be signed by him voluntarily for its stated purpose, as the
duly-authorized Vice President and Chief Financial Officer of Smith & Wesson
Corp.

                                  /s/ Deborah Ann Roe
                                  ----------------------------------------------
                                  (Print Name of Notary Public): Deborah Ann Roe
                                  My commission expires: 03/27/09
                                  Qualified in the Commonwealth of Massachusetts

<PAGE>

                                        Grantee:

                                        TD BANKNORTH, N.A. (as
                                        successor-my-merger to Banknorth, N.A.)

/s/ Joanne Lavoie                       By /s/ Maria P. Goncalves
-------------------------------------      -------------------------------------
Witness                                    Maria P. Goncalves
                                           Senior Vice President

                          COMMONWEALTH OF MASSACHUSETTS

Hampden County, ss.

     On this 6 day of November, 2006, before me, the undersigned Notary Public,
personally appeared the above-named Maria P. Goncalves, proved to me by
satisfactory evidence of identification, being (check whichever applies): [ ]
driver's license or other state or federal governmental document bearing a
photographic image, [ ] oath or affirmation of a credible witness known to me
who knows the above signatory, or [X] my own personal knowledge of the identity
of the signatory, to be the person whose name is signed above, and acknowledged
the foregoing to be signed by her voluntarily for its stated purpose, as the
duly-authorized Senior Vice President of TD Banknorth, N.A. (as
successor-by-merger to Banknorth, N.A.).

                                  /s/ Anne Kulik
                                  ----------------------------------------------
                                  (Print Name of Notary Public): Anne Kulik
                                  My commission expires: Dec 22, 2006
                                  Qualified in the Commonwealth of Massachusetts<PAGE>

                                                                   EXHIBIT 10.33

                         ACQUISITION LINE OF CREDIT NOTE

$30,000,000.00                                                  November 8, 2006
                                                      Springfield, Massachusetts

     FOR VALUE RECEIVED, the undersigned, Smith & Wesson Corp., a Delaware
corporation having a principal place of business at 2100 Roosevelt Avenue,
Springfield, Massachusetts (the "Borrower"), promises to pay to the order, of TD
BankNorth, N.A., a national banking association ("Lender"), having a usual place
of business at 1441 Main Street, Springfield, Massachusetts, the principal sum
of Thirty Million and 00/100 Dollars ($30,000,000.00) or the (then) current
balance of Borrower's outstanding Acquisition Loans made on or after the date
hereof, as reflected on the books, records and ledgers of the Lender, as well as
all other obligations of the Borrower which may at any time be due the Lender
(if such balances or obligations are other than Thirty Million and 00/100
Dollars ($30,000,000.00), together with interest thereon at the rates
hereinafter provided which shall be due and payable upon the outstanding
principal balance until paid in full, in accordance with a certain Amended and
Restated Loan and Security Agreement of even date herewith among the Borrower,
Smith & Wesson Holding Corporation and the Lender (as successor-by-merger to
Banknorth, N.A.) (the "Loan Agreement"). Unless otherwise defined herein,
capitalized terms shall have the meanings ascribed to them in the Loan
Agreement.

     Interest shall be payable in arrears, and shall be calculated daily and
payable in accordance with the terms of the Loan Agreement on the outstanding
and unpaid principal amount of Acquisition Loans during the preceding month at a
rate per annum equal to:

     A. For a Prime Loan, at a rate equal to the Prime Rate in effect from time
to time, plus the Applicable Margin then in effect with respect to Prime Loans.

     B. For a LIBOR Loan at a rate equal to the LIBOR Base Rate in effect from
time to time, plus the Applicable Margin then in effect with respect to LIBOR
Loans.

     Prior to the Conversion Date, principal sums advanced under this Note may
be repaid and reborrowed in accordance with the terms of the Loan Agreement. No
Borrowing or Loan under this Note shall be made after the Conversion Date.

     Subject to the terms and conditions contained in the Loan Agreement, this
Acquisition Line of Credit Note shall be repaid in accordance with the terms of
the Loan Agreement. This Note is the Acquisition Note referred to in, and is
subject to, and entitled to, the benefits of the Loan Agreement between Borrower
and Lender. The terms used herein which are defined in the Loan Agreement shall
have their defined meanings when used herein.

               Principal amounts advanced under this Note (the "Acquisition
          Loan") shall convert to a principal amortizing loan on November 8,
          2008 (the "Conversion Date").

<PAGE>

               Commencing one (1) month after the Conversion Date and on the
          same day of each succeeding month, the Borrower will repay the (then)
          outstanding principal balance of the Acquisition Loans, together with
          interest thereon, in sixty (60) consecutive monthly installments, each
          of which shall be in an amount consisting of: (x) principal in an
          amount equal to one sixtieth (1/60) of the outstanding balance of the
          Acquisition Loan on the Conversion Date, and (y) accrued interest then
          on the unpaid principal balance of the Acquisition Loans at the
          rate(s) then in effect. The entire unpaid principal balance of the
          Acquisition Loan, together with accrued interest thereon shall be due
          and payable on the Acquisition Loan Maturity Date.

     All Acquisition Loans shall be secured by a Lender's security interest
granted in the Loan Agreement.

     Any payment received more than ten (10) days after its due date shall be
subject to an additional charge of six percent (6%) of the amount due.

     This Note and all Acquisition Loans made hereunder shall be in default, and
all unpaid principal, interest, and other amounts due, shall, at Lender's
option, be immediately due and payable, without prior notice, protest, or
demand, upon the occurrence of any one or more of the Events of Default as
specified in the Loan Agreement. Default upon this Note shall also operate as a
default upon all other Obligations of Borrower to Lender.

     Upon and during the continuance of an Event of Default (whether or not
Lender has accelerated payment of the Acquisition Loan or any other Obligations
hereunder), or after maturity or after judgment has been rendered on the
Acquisition Loan or any other Obligations hereunder, Borrower's right to select
pricing options shall cease and the unpaid principal of all Borrowings and Loans
shall, at the option of Lender, bear interest at the default rate set forth in
Section 2.14(c) of the Loan Agreement.

     Nothing herein shall be construed to restrict the Lender, in its sole
discretion, from making Borrowings and Loans in excess of the face amount of
this Note, without requirement of execution of additional notes, or otherwise
modifying this instrument, and its so doing at any time or times, shall not
result in a waiver of its rights to insist upon strict compliance with the terms
of this Note, or any document or instrument granting security to the Lender or
other instruments executed in connection with this financial transaction, at any
other time.

     Borrower agrees that the Lender shall make Borrowings or Loans to the
Borrower upon written or verbal authority of Borrower and deliver loan proceeds
by direct deposit to any demand deposit account of the Borrower with the Lender,
or otherwise, as so directed; and that all such Borrowings and Loans as
evidenced solely by the Lender's books, ledgers and records shall represent
binding obligations of the Borrower hereunder.

                                       -2-

<PAGE>

     Borrower, with respect to this Note and/or the obligation represented by
this Note, waives presentment, demand, notice, protest and all other demands or
notices in connection with the delivery, acceptance, or endorsement of this
Note. With respect to liabilities, the Borrower assents to any extension or
postponement of the time of payment or any other indulgence to the addition or
release of any party or person primarily or secondarily liable, to the
acceptance of partial payments thereon and the settlement thereof, all in such
manner and at such time or times as the Lender may elect in its sole and
exclusive discretion, and generally waives all suretyship defenses and defenses
in the nature thereof. No delay or omission on the part of the Lender in
exercising any right shall operate as a waiver of such right or any other right.
A waiver on any one occasion shall not be construed as a bar to or waiver of any
right on any future occasion. All rights and remedies of the Lender, whether
evidenced hereby or by any other instrument or papers, shall be cumulative and
may be exercised singularly or concurrently.

     The undersigned will pay all reasonable costs and expenses of collection,
after an Event of Default, including reasonable attorneys' fees, incurred or
paid by the holder in enforcing this Note or the obligations hereby evidenced,
to the extent permitted by law.

     No delay or omission of the holder in exercising any right or remedy
hereunder shall constitute a waiver of any such right or remedy. Acceptance by
the holder of any payment after acceleration shall not be deemed a waiver of
such acceleration. A waiver on one occasion shall not operate as a bar to or
waiver of any such right or remedy on any future occasion.

     The holder need not enter payments of principal or interest upon this Note
but may maintain a record thereof on a separate ledger maintained by the holder.

     The word "holder" as used in this Note shall mean the payee or endorsee of
this Note who is in possession of it or the bearer if this Note is at the time
payable to bearer. The word "Borrower" as used in this Note shall mean the
Borrower and all successors or assigns.

     In the event any payment of principal or interest received upon this
obligation and paid by the Borrower, or any guarantor, surety, co-maker or
endorser, shall be deemed by final order of a court of competent jurisdiction to
have been a voidable preference or fraudulent conveyance under the bankruptcy or
insolvency laws of the United States, or any state, or otherwise due to any
party other than the Lender, then in any such event, the obligation of said
Borrower, or any guarantor, surety, co-maker or endorser shall, jointly and
severally, survive as an obligation due hereunder and shall not be discharged or
satisfied by said payment or payments, notwithstanding return by the Lender to
said parties of the original hereof, or any guaranty, endorsement, or the like.

     The Borrower expressly warrants that the proceeds of the loan shall be used
solely for business purposes and that this transaction is not a consumer
transaction subject to M.G.L.c. 140D, Regulation Z of the Board of Governors of
the Federal Reserve System, or other "consumer protection" statutes,
regulations, or restrictions, without exception. Borrower is not engaged in the
business of purchasing or selling margin stock (as defined in Regulation U of
the Board of Governors of the Federal Reserve System) or extending credit to
others for the purpose of purchasing or carrying margin stock, and no part of
the proceeds of any borrowing hereunder

                                       -3-

<PAGE>

will be used to purchase or carry any margin stock or for any other purpose
which would violate any of the margin regulations of said Board of Governors.

     Borrower hereby grants to Lender, a continuing lien, security interest and
right of setoff as security for all liabilities and obligations to Lender,
whether now existing or hereafter arising, upon and against all deposits,
credits, collateral and property, now or hereafter in the possession, custody,
safekeeping or control of Lender or any entity under the control of TD
BankNorth, N.A. and its successors and assigns or in transit to any of them. At
any time, without demand or notice (any such notice being expressly waived by
Borrower), Lender may setoff the same or any part thereof and apply the same to
any liability or obligation of Borrower even though unmatured and regardless of
the adequacy of any other collateral securing the Loan. ANY AND ALL RIGHTS TO
REQUIRE LENDER TO EXERCISE ITS RIGHTS OR REMEDIES WITH RESPECT TO ANY OTHER
COLLATERAL WHICH SECURES THE LOAN, PRIOR TO EXERCISING ITS RIGHT OF SETOFF WITH
RESPECT TO SUCH DEPOSITS, CREDITS OR OTHER PROPERTY OF BORROWER, ARE HEREBY
KNOWINGLY, VOLUNTARILY AND IRREVOCABLY WAIVED.

     Lender shall have the unrestricted right at any time and from time to time,
and without the consent of or notice to Borrower, to grant to one or more banks
or other financial institutions (each, a "Participant") participating interests
in Lender's obligation to lend hereunder and/or any or all of the loans held by
Lender hereunder. In the event of any such grant by Lender of a participating
interest to a Participant, whether or not upon Notice to Borrower, Lender shall
remain responsible for the performance of its obligations hereunder and Borrower
shall continue to deal solely and directly with Lender in connection with
Lender's rights and obligations hereunder. Bank may furnish any information
concerning Borrower in its possession from time to time to prospective
Participants, provided that Lender shall require any such prospective
Participant to agree in writing to maintain the confidentiality of such
information.

     This Note and the rights and obligations of the parties hereunder shall be
construed and interpreted in accordance with the laws of the Commonwealth of
Massachusetts (the "Governing State") (excluding the laws applicable to
conflicts or choice of law).

     Upon receipt of an affidavit of an officer of Lender as to the loss, theft,
destruction or mutilation of the Note or any other security document which is
not of public record, and, in the case of any such loss, theft, destruction or
mutilation, upon cancellation of such Note or other security document, Borrower
will issue, in lieu thereof, a replacement note or other security document in
the same principal amount thereof and otherwise of like tenor.

     This Note shall be governed by the laws of the Commonwealth of
Massachusetts provided that, as to the maximum rate of interest which may be
charged or collected, if the laws applicable to the Lender permit it to charge
or collect a higher rate than the laws of The Commonwealth of Massachusetts,
then such laws applicable to the Lender shall apply to the Lender under this
Note.

     THE BORROWER AND THE LENDER HEREBY WAIVE TRIAL BY JURY IN ANY ACTION,
PROCEEDING, CLAIM OR COUNTERCLAIM, WHETHER IN CONTRACT OR

                                       -4-

<PAGE>

TORT, AT LAW OR IN EQUITY, ARISING OUT OF OR IN ANY WAY RELATES TO THIS NOTE OR
ANY OTHER LOAN DOCUMENT. NO OFFICER OF THE LENDER HAS AUTHORITY TO WAIVE,
CONDITION, OR MODIFY THIS PROVISION.

                     (The next page is the signature page.)

                                       -5-

<PAGE>

     This Note shall take effect as an instrument under seal.

                                        SMITH & WESSON CORP.

/s/ Deborah A. Roe                      By: /s/ John A. Kelly
-------------------------------------       ------------------------------------
Witness                                     John A. Kelly
                                            Vice President and
                                            Chief Financial Officer

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