C. Michael Jacobi - Sturm, Ruger & Co., Inc. Kevin B. Reid, Sr. - Sturm, Ruger & Co., Inc. Phillip C. Widman - Sturm, Ruger & Co., Inc. Sandra S. Froman - Sturm, Ruger & Co., Inc. Colleen Scanlon - Catholic Health Initiatives Unverified Participant Christopher John Killoy - Sturm, Ruger & Co., Inc. Michael O. Fifer - Sturm, Ruger & Co., Inc. C. Michael Jacobi - Sturm, Ruger & Co., Inc.: Okay. Good morning. Well, the meeting comes to order. I'd like to start by welcoming all of you to Prescott with wonderful weather this morning. This is the second time we've had an Annual Meeting here in Prescott where we have a beautiful facility with 400 wonderful employees. So, we're very happy to be here. I am Mike Jacobi, the Chairman of the board of Sturm, Ruger & Company, Inc. and it is my pleasure on behalf of the directors and officers of Sturm, Ruger & Company, Inc. to welcome those present, including those attending the meeting through our webcast to the 2018 Annual Meeting of Stockholders. As a reminder, please silence your cell phone during the meeting. All questions should be held to the end of the meeting after the presentation by our Chief Executive Officer, Chris Killoy. When you do have a meeting or a question, please identify yourself, come up to the mics and the questions will be limited to two minutes. As of this time, I would like to introduce the company's other directors. First, John A. Cosentino, he was not able to attend. He is our lead Director and Vice Chairman and he's listening in to the webcast. Michael O. Fifer, who's also a Vice Chairman; Sandra S. Froman; Christopher J. Killoy, who is our President and CEO; Terrence G. O'Connor; Amir P.…

Thank you. Good morning. I'm Colleen Scanlon of Catholic Health Initiatives. And I'm here on behalf of my organization and behalf of the Sisters of the Holy Names and at 10 additional faith-based shareholders to present proposal for. I move that the board issue a report to shareholders by February of 2019 at reasonable expense and excluding proprietary information on the company's activities related to gun safety measures and the mitigation of harm associated with gun products including the following. Evidence of monitoring of violent events associated with products produced by the company, efforts underway to research and produce safer guns and gun products, an assessment of the corporates reputational and financial risks associated with gun violence in the United States. Thank you. C. Michael Jacobi - Sturm, Ruger & Co., Inc.: Are there any remarks on the shareholder proposal?

Yes. My name is Mike Solberg (16:16) and I am a pastor in Hinsdale, Illinois, and a leader with Metro-IAF which represents hundreds of faith-based and civic organizations in the United States and in Europe. And I am also a shareholder of the company. I would like to ask, first of all, a question about the board's response to the proposal put forth by ICCCR. And that is the response to the proposal identifies any issues regarding gun violence as an issue for law enforcement. You say that this is a – you put in quotes, "not so much a public health crisis but rather a law enforcement issue." I have a document signed by a 123 different law enforcement leaders and mayors and even governors of states which shows that many of us disagree. That it is not simply a law enforcement issue, but it is an issue that is broad-based in our society and demands a broad-based solution. And so I would like to ask if the company, Mr. Killoy, if you will meet with us within 30 days to be part of the solution to a broad-based problem and be a part of the broad-based response. C. Michael Jacobi - Sturm, Ruger & Co., Inc.: Can I just say that a response to that question, I'd like to hold that response until after Mr. Killoy's presentation. So he'll address that when he finishes later today – later this morning. This concludes discussion on all formal matters to be brought before the shareholders, and we will commence to vote on these matters. The polls are open as (18:36) Kevin B. Reid, Sr. - Sturm, Ruger & Co., Inc.: The polls are open as of 9:19 AM on May 9, 2018 for each matter we've voted upon. C. Michael…

Again, I'm Colleen Scanlon from Catholic Health Initiatives, representing my organization and 10 additional faith-based members of the Interface Center on Corporate Responsibility. The fact that a majority of shareholders is asking you to look at gun safety is incredibly significant. You say you're committed in your video to quality, affordable firearms. What about safer firearms? Can you describe what actions Sturm, Ruger is taking to design and manufacture safer guns and gun products? And any other safety measures the company is undertaking to mitigate the reputational and financial risks the company faces as a result of episodes of gun violence? While gun violence is an issue of concern to everyone, the responsibility to market safe guns sold to the public appropriately lies with gun manufacturers and distributors. In response to public pressure, national gun retailers are imposing greater safety restrictions on guns sold to the public insisting on safer products and clearing their shelves of the most dangerous assault style weapons and accessories. Banks, credit card companies, institutional investors, and large asset managers are all assessing their relationships with the industry. Yet we have seen no evidence of our company's efforts to change its practices and policies. The American public will continue to seek solutions to random senseless gun violence from all stakeholders. They will return to gun manufacturers and expect an honest accounting of the efforts they have made to avoid these tragic events. We want to see Sturm, Ruger presenting solutions and we look forward to working with you to pursue any and all efforts to advance gun safety. If new product development, as you said Mr. Killoy, is the lifeblood of Sturm, Ruger, safer guns needs to be on that development agenda. Please share the corporate efforts you are taking to research and produce safer guns.…

Again my name is Mike Sohlberg (44:51), a pastor in Hinsdale, Illinois, and part of the Do Not Stand Idly By campaign of Metro-IAF. As I said, in organization of hundreds of faith-based and civic organizations that addresses matters of common concern to the citizens that are part of our organizations. I was honestly surprised, Mr. Killoy, at the tone of your opening remarks in rejection of the shareholder resolution. You wanted to make it clear right from the start that you're not giving an inch to this shareholder resolution that you will complete the report as required. But that your intent is not really to engage with the shareholders who care about this, nor with possible customers who could, for whom it would add value to the company to respond in a co-operative way. What the ICCR (sic) [ICCCR] (45:56) resolution is looking for and what my organization is looking for is engagement. The reality of gun violence in our society is a complicated, multifaceted issue. The gun manufacturers are not the only part of the problem, but there is a big problem and a solution is multifaceted. And so as a shareholder, I am concerned at the company's unwillingness to engage with other shareholders, other possible customers in trying to figure out how we can reduce the use of our guns in murders and other crimes, not through the standard distribution markets that you recognize, but through secondary markets which everyone knows full well exists and which manufacturers can take measures to begin to describe. You say that it's a law enforcement issue and that all of your wholesalers and their retail outlets are federally licensed and yet everyone knows that the federal -- feds do not have the ability to enforce all of the requirements and that…

Well, sir, I'll make sure there are no shareholders in the room and the rest of our people can meet with you. Christopher John Killoy - Sturm, Ruger & Co., Inc.: Regardless, I don't think those people or even shareholders who advance what I would consider to be activist or well-intentioned proposals have our company's best interest at heart. Our company's best interest is served by meeting the needs of our customers at the wholesale, retailer and consumer level and those customers and we have a – we do share a responsibility to our shareholders to ensure a fair return on their investment in the company and we don't see that people who ask us to stop manufacturing firearms that are perfectly legal and sold throughout the country is in the best interest of our shareholders.

But that's what I want to do. I want to clarify that's not what we're doing, we are not gun control advocates. We are not encouraging you not to make certain weapons. We are encouraging you to take the reputational risks of this issue seriously and engage with those who want to make a difference. Christopher John Killoy - Sturm, Ruger & Co., Inc.: Well, I can assure you we always -- reputational risks is a big factor and in our 10-K, we outlined key risk factors to our business. And reputational risk can result in either legislation, litigation or decreased demand from our consumers, all of which we outlined as risk factors in our 10-K.

Well, I hope that all of the shareholders listening around the world are listening to this continued policy of non-engagement on an issue that obviously matters to over half of the shareholders of the company. Kevin B. Reid, Sr. - Sturm, Ruger & Co., Inc.: If I may interrupt, I just want to remind everyone that the purpose of this time is to ask questions, is not intended to be a political forum or an opportunity to air your views. So if you would please limit yourself to questions to remain to the company and the business of hand, I would appreciate it.

I appreciate the company, but I appreciate the comment, but all of my comments have been aimed at the reputational risk of the company, not what you would consider to be political statements. C. Michael Jacobi - Sturm, Ruger & Co., Inc.: All right. Are there any other any other – okay.

Good morning. Christopher John Killoy - Sturm, Ruger & Co., Inc.: Good morning.

I am a former Marine and a gunner. My name is Terrell Williams (50:41), I'm an organizer with build (50:44) and I have run a program in Baltimore City for people who are incarcerated in helping them to get living wage jobs. But today, I am here to urge you to act. I am here to say, can you be really a part of the solution. Your guns are the second most common guns collected by police in crime in every city from which we have collected data, and I'd like to add does the prevalence of these guns in police statistics are there serious risk to the company's reputation and its future. I was shot in 2001. I was shot driving from D.C. to St. Louis to visit my dying father. I was fortunate to survive, but many people are not. This type of gun violence happens every day in our cities. This past Saturday, two teens were shot, one of them was killed. His father had just taken him three weeks earlier to Hampton University with a star lacrosse player, captain of the team. This issue of gun violence must be dealt with from our stakeholders and stockholders alike, on life and death situations we cannot sit on the side. Together, I believe, we can do a better job with background check together. I believe that we can change this capacity on magazines together. I believe that we can work together to bring to market a secure, safe, smart and traceable product. Maybe, maybe you haven't had your skin pierced by a bullet or someone you love or the people who look like you. Certainly, those that look like me suffer from it every single day. You have a seat at this table. I need you to have…

Sir, could you help us get that meeting, please? Kevin B. Reid, Sr. - Sturm, Ruger & Co., Inc.: I can certainly get you their contact information and let -- get (54:28).

I'll take that as a yes. Kevin B. Reid, Sr. - Sturm, Ruger & Co., Inc.: I will put you in – I will give you their contact information and reach out to them, and let them know you'll be contacted.

We'll appreciate that. Thank you.

Good morning. (54:42) 1776 Holdings. My question relates to there's some quality assets on the market as you're aware and certainly (54:51) or can't get into specifics. But I'm hoping to get a definitive answer on a very general question, which is this. All else being equal, would you rather acquire a ammunition operation or a gun brand? Christopher John Killoy - Sturm, Ruger & Co., Inc.: We were in our board meeting yesterday. One of the things we talk – we do talk about that, one of the challenges is, some of the firearms brands on the market duplicate quite heavily some of the products that we already are into. If something comes on the market, if there's an opportunity, we're just going to take a look at it. On the ammunition side, that might make sense as well. The challenge with ammunition is, yeah, collectively within Ruger, we have a great management team, a great operations team, very skilled in lean manufacturing, but frankly none of us have ever run an ammunition company. We don't have to worry about hedging our commodities and things like that. So that's one of the things we might take a long hard look at. We have to ground ourselves with the fact that we don't have a lot of experience in that part of the business. But it's certainly on the table, if that – those potential transactions come down the road or come available.

And is our analysis correct that there's not a lot of players that are able to do a big deal. Everybody is pretty hamstrung and of those who could do potentially reasonably sized deals, Ruger would probably be amongst a few? Christopher John Killoy - Sturm, Ruger & Co., Inc.: I think that's probably a safe assumption. I mean, a lot of the big banks no longer want to be in this space. So you've got the financial buyers that may not be supportive of those transactions and so it maybe strategic buyers that maybe have the better opportunity.

Thank you.

It's Colleen Scanlon. I'd like to ask one more question, I'm from Catholic Health Initiatives. In your statement of opposition to our shareholder proposal, you state that smart gun technology is not available. I think what the shareholders are asking is, what you can do to change that reality? Will you put that on your agenda so that the same security tracing protections I have on my iPhone will be on guns in the near future so as to protect our society, our communities, the individuals who live in them and particularly our children. Christopher John Killoy - Sturm, Ruger & Co., Inc.: Thank you. First off, we wouldn't disclose proprietary or confidential information about the – what we're working on or what we're not to look everything down to what's the next caliber in a new firearm to something like individual user technology or smart gun technology, so-called. One of the things to point out though, it goes without saying an iPhone if you drop it a couple of times, it's not going to function like it should. A firearm has an extremely robust operating system and there are a lot of challenges just because you can get your fingerprint recognition on an iPhone doesn't mean that can work on a firearm. But again, we don't comment on anything that we might or might not be looking at. Well, certainly, I believe that was one of the topics in the shareholder proposal. So, we'll certainly report about – report on that as appropriate to the proposal as drafted and approved by the shareholders. Kevin B. Reid, Sr. - Sturm, Ruger & Co., Inc.: Are there any other questions?

Good morning, Mr. Killoy. Christopher John Killoy - Sturm, Ruger & Co., Inc.: Good morning.

I'm Maria Cristina, Penguin Island (58:25) with also with Metro-IAF and the Do Not Stand Idly By campaign. I'm from Baltimore. And yesterday, at 7:42 in the morning, my son Ben (58:38) turned 10 years old. I was in my car driving to the airport to try and catch a 9:25 flight to Phoenix and if you can imagine the decision to come here was a difficult one. And last week, when I was struggling with the decision whether or not to come, I decided to talk with Ben (59:02), I told him about the meeting and what it was about, why I felt it was important and my dilemma. He's a bright and thoughtful boy. And I wanted to know what he thought. And so the first thing he said was, well, mom, I need some more time to think about it. And so I checked back in with him after an hour and he looked at me very seriously with his eyebrows furrowed and he said, mom, I really think you should go. And I've said why Ben (59:34), it means I'm going to be gone for your birthday. And he said, well, mommy, it's a really big problem and if there's something you can do to help, you should go. And so my son, Ben (59:54) just shy of his 10th birthday was able to give voice to a key moral human truth that if there's a problem and it's within your power to do something, you should. The 19th chapter in the book of Leviticus 16 verse puts it this way when it comes to human life, "when your neighbor's life is threatened, do not stand idly by." I cannot stand idly by because people who I know have lost their lives to the misuse of guns including a young man that I taught in middle school before I became a priest. His name is Dominick Dungey (60:43) and two years ago at the age of 26, he was shot and killed in Baltimore and it was a case of mistaken identity. And so my question to you is will you and Sturm, Ruger also not stand idly by and use the power that you have to engage with us and people who want to see a change and will you reply to this RFP – RFI, requests for information, that's been signed and supported by 123 jurisdictions to move forward and be part of the solution? Christopher John Killoy - Sturm, Ruger & Co., Inc.: I believe we have a copy of the RFI, Kevin. Kevin B. Reid, Sr. - Sturm, Ruger & Co., Inc.: Yeah. We have it. Yes. Christopher John Killoy - Sturm, Ruger & Co., Inc.: So let me take a look at that when I get back to the office, and I'll take a look at it.

Thank you. Christopher John Killoy - Sturm, Ruger & Co., Inc.: And consider that. We do not plan, as I said, to do individual shareholder meetings. And again, I would tell you that Ruger is very concerned about – and always has been about our business practices. We work closely with the ATF. We work closely with federal, state and local law enforcement on enforcement of existing firearms laws, every fire – every Ruger firearm by the time it gets to the background check that takes place at retail with a federal Form 4473 has already gone from a fact – one of Ruger factories where we undergo periodic ATF inspections and for the last five years or six years we've had zero violations from the ATF inspections. So it goes from our federal firearms license to a wholesaler, also federally licensed, then to a retailer also federally licensed. And then before the consumer can buy it, it goes through a federal background check based on the individual states, those are somewhat different, that's how they're handled. But all of them get that federal background check at retail. So we're proud to work with that system. We're proud to continue to support that, enhance it. We supported the NSSF's, our industry trade associations, FixNICS campaigns to better improve that background check process, it improved the state of mental health records in the FBI database. And we've been supportive of that since 2013. So – but I will take a look at that RFI when I get back. I think Mr. Reid has a copy, and take a look at it.

Thank you. I just respectfully ask when might we respect a response just so that we can have our eyes and ears open. Christopher John Killoy - Sturm, Ruger & Co., Inc.: Take a look at it and, Kevin, when we get back and we can – in the next 30 days, we can.

Next 30 days. Christopher John Killoy - Sturm, Ruger & Co., Inc.: No, that doesn't mean I'm going to respond in something that you're going to necessarily appreciate or like, but we'll – I'll take a look at it. I'll read every point and I'll get back to you on it.

Thank you. Christopher John Killoy - Sturm, Ruger & Co., Inc.: Okay.

I'm sure I've taken my two minutes; Mike Sohlberg (63:30) again. But Mr. Reid, I just wanted to ask a very specific question. Can you report the actual percentages of the vote on the shareholder resolution? You've reported a majority, but will you report the actual percentages, please? Kevin B. Reid, Sr. - Sturm, Ruger & Co., Inc.: Those will get filed with the 10-K. That information will become available.

You're not able to (63:47) right now? Kevin B. Reid, Sr. - Sturm, Ruger & Co., Inc.: No. Not right now. C. Michael Jacobi - Sturm, Ruger & Co., Inc.: Are there any other questions? Okay. There will be no other business to come before the meeting. I'll ask for a motion to adjourn. Michael O. Fifer - Sturm, Ruger & Co., Inc.: Mr. Chairman, I move that the 2018 Annual Meeting of Stockholders of the company be adjourned. C. Michael Jacobi - Sturm, Ruger & Co., Inc.: May I have a voice vote on the motion all in favor, signify by saying aye?

Aye.

Aye. C. Michael Jacobi - Sturm, Ruger & Co., Inc.: The 2018 Annual Meeting of the Stockholders of the company is hereby adjourned. On behalf of the Board of Directors, I would like to thank you for attending the meeting and for your continued support of the company. Thank you. Kevin B. Reid, Sr. - Sturm, Ruger & Co., Inc.: And one final statement as all of you head home today. Ruger like all companies is a collection of people. In our case, we are Americans who work together to produce rugged, reliable, innovative and affordable firearms for responsible citizens. We are staunch supporters of the Second Amendment, not because we make firearms, but because we cherish the rights conferred by it. We understand the importance of those rights and as importantly we recognize that allowing our constitutionally protected freedoms to be eroded for the sake of political expediency is a wrong approach for our company, for our industry, for our customers and for our country. We are arms makers for responsible citizens and I want to assure our long-term shareholders and loyal customers that we have no intention of changing that. Thank you.