Document:

Exhibit
10.1

September 8, 2006

Mr. William Hayes

155 Honeysuckle Road

Lake Forest, IL  60045

Dear Bill:

This letter agreement
(“Letter Agreement”) will confirm and formalize our agreement with
respect to your employment for the position of President of the General Safety
and Preparedness segment of Norcross Safety Products L.L.C. (the “Company”).  In this position you will have full General
Management responsibility for the General Safety and Preparedness segment and
will report directly to me.

This Letter Agreement
is among you, the Company and Safety Products Holdings, Inc., a Delaware
corporation (“Safety Products”), and I represent to you that I have the
authority to enter into this Letter Agreement with you on behalf of both the
Company and Safety Products.

Starting Date:  The starting date of your employment shall be
between October 2, 2006 and October 16, 2006, to be mutually agreed upon (the “Hire
Date”).

Base Salary:  Beginning on your Hire Date, you will receive
a base salary of $375,000 per year (“Base Salary”), to be paid in bi-weekly
installments of $14,423.08 in accordance with the Company’s payroll cycle.  Beginning on January 1, 2007, and each year
thereafter, the Base Salary will be reviewed and will be subject to increase,
but not decrease from time to time.  Upon
any increase in Base Salary, Base Salary as so increased shall be considered
the new Base Salary for all purposes of this Letter Agreement, and shall not
thereafter be reduced.

Annual Bonus:  You shall be eligible for an annual incentive
bonus (“Annual Bonus”) at the end of each fiscal year that provides for
a target Annual Bonus of 85% of your Base Salary (i.e. Annual Bonus of $318,750
based on current Base Salary).  The Annual
Bonus will be based upon the financial performance of our General Safety and
Preparedness segment (80%) and personal objectives together with the EBITDA
performance of the Company (20%).  In
addition, if we exceed our budgeted targets, the Annual Bonus could be as much
as 125% of your targeted 85% (or $398,438 based on current Base Salary).  The Annual Bonus shall be paid no later than
two and a half (2-1/2) months after the end of the fiscal year in which it is
earned (i.e. currently because the fiscal year is the calendar year, the Annual
Bonus for a particular year shall be paid no later than March 15 of the
immediately following year).  The target
(85%) and maximum (125% of 85%) percentages for the Annual Bonus shall not be
reduced, unless such reduction is applicable to all similarly situated senior
executives of the Company, and in such an event, the reduction factors
applicable to you shall not be worse than the reduction factors applicable to
similarly situated senior executives of the Company.

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Guaranteed Bonus:  No later than fifteen business days after your
Hire Date, you will be paid $88,000, net of legally required tax and other
withholdings, in a single lump sum to replace the estimated bonus you have
earned to date in 2006 at your current employer.  Additionally, your Annual Bonus for 2006
shall be prorated based on the Hire Date, it shall be guaranteed at the minimum
85% target level, and it shall be paid to you no later than March 15, 2007.

Stock Options:  On, or as soon after your Hire Date as Safety
Product’s Board of Directors and Shareholders have approved a sufficient
increase in the number of shares available for grant under the 2005 Option Plan
of Safety Products Holdings, Inc., which approval will be sought beginning
promptly after you sign this Agreement, (the “Grant Date”), you shall be
granted an option (the “Option”) to purchase an amount of common stock of
Safety Products at fair market value on the Grant Date equal to one percent
(1.0%) of the outstanding common stock of Safety Products on a fully diluted
basis (which currently equates to approximately 120,000 shares).  The Option shall vest and become exercisable
as to one-third (1/3) (approximately 40,000 shares) of the shares underlying
the Option ratably on December 31, 2007, December 31, 2008, and December 31,
2009, as set forth in the Non-Qualified Option Agreement of Safety Products
Holdings, Inc. to be executed by you and Safety Products on the Grant Date (the
“Option Agreement”), in a form as nearly identical as possible as that
attached hereto as Exhibit A.  The
Option shall vest and become exercisable as to the remaining two-thirds (2/3)
of the shares underlying the Option as provided in Section 3.1(b) and (c) of Exhibit
A.  For the avoidance of doubt, the
EBITDA targets set out in Exhibit A are subject to adjustment as
provided in Section 4.6 thereof.

Purchased Shares:  You agree that you will invest, within 15
business days of your Hire Date, between $100,000 and $150,000 in Safety
Products.  This equates to between 5,000
and 7,500 shares.  The Company and Safety
Products have, in good faith and using their best judgment under the
circumstances, determined that the current fair market value of a share of
common stock of Safety Products, based on the reasonable application of a
reasonable valuation method, within the meaning of Proposed Regulation
1.409A-1(b)(5)(iv)(B), is nineteen dollars and sixty-seven cents ($19.67).

Severance:  If your employment is terminated by the
Company or Safety Products without “Cause” (as defined in Section 1.1 of
the Option Agreement attached hereto as Exhibit A), or if you terminate
your employment because your Base Salary has been reduced or the Option is not
granted to you within forty-five (45) calender days of your hire date, you
shall be paid:  (A) two (2) years of your
Base Salary payable in equal monthly installments in accordance with the
Company’s normal payroll practices, over the 24 months immediately following
the date of your termination of employment (the “Termination Date”); (B)
any accrued Annual Bonus earned but not yet paid, for the fiscal year prior to
the year which includes the Termination Date, payable within the period
otherwise applicable to the payment of your Annual Bonus; (C) no later than two
and a half (2-1/2) months after the end of the fiscal year which includes the
Termination Date, you shall be paid a prorated Annual Bonus for the fiscal year
which includes the Termination Date, based on the portion of the Base Salary
paid to you in such year if financial targets are met for the year in which the
Termination Date occurs; and (D) from your Termination Date through the second
anniversary of your Termination Date, 

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your medical
insurance coverage shall continue on the same basis and at the same cost to you
as if you were an active full-time employee of the Company.

Vacation:  You will be entitled to four (4) weeks paid
vacation each year.  Vacation not taken
during the calendar year may not be carried forward to any subsequent year
without the approval of the President/CEO of the Company.

Health Insurance:  On your Hire Date, you would be eligible to
participate immediately in the Company’s group health insurance plan.  The group health insurance plan offers
medical, dental, vision, life, accidental death and dismemberment, long-term
disability and optional life and accidental death coverages.  The details of the group insurance benefits
will be provided to you under separate cover.

Retirement Savings
Plan:  The Company
provides a 401(k) plan (“401(k) Plan”) in which you may elect to
participate after completing three consecutive months of employment.  The 401(k) Plan provides for a Company matching
contribution.

Automobile:  You will receive a $700.00 per month vehicle
allowance.

Tax Withholding.  All payments to be made to you under this
Agreement or your Option Agreement will be paid net of all legally required tax
and other withholdings.

Indemnification:  The Company and Safety Products agree to
indemnify you for any work related liability to the fullest extent permitted
under their by-laws, applicable law, applicable indemnification agreements, and
other governing documents.  While you are
employed by the Company and for so long thereafter as the Company provides such
indemnification to other similarly situated former employees, the Company shall
maintain liability insurance coverage for you at a level equal to the most
favorable and protective coverage provided for any active officer or director
of the Company.

Internal Revenue
Code Section 409A Compliance. 
If payment of any amount or other benefit that is “deferred compensation”
subject to Section 409A of the Internal Revenue Code at the time otherwise
specified in this Letter Agreement would subject such compensation to
additional tax pursuant to Internal Revenue Code Section 409A(a)(1), the
payment thereof shall be postponed to the earliest commencement date on which
such amounts could be paid without incurring such additional tax.  If any benefits permitted or required under
this Letter Agreement are otherwise reasonably determined by the Company or you
to be subject for any reason to a material risk of additional tax pursuant to
Internal Revenue Code Section 409A(a)(1), you and the Company agree to
negotiate in good faith appropriate provisions to avoid such risk without
materially changing the economic value of this Letter Agreement to you or the
economic value or financial effect of this Letter Agreement on the Company.

This Letter
Agreement contains the entire understanding of the parties with respect to your
employment by the Company, and may not be modified or amended except by written
instrument signed by the parties hereto.

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Bill, we are
excited at the prospect of you joining the Company and believe this will be a
challenging and exciting opportunity providing you with both professional and
personal growth.  We recognize that you
retain the option, as does the Company, of ending your employment with the
Company at any time, with or without notice and with or without Cause.  As such, your employment with the Company is
at-will and neither this Letter Agreement nor any other oral or written representations
may be considered as providing for continuation of your employment with the
Company for a specific period of time.

Kindly indicate
your acceptance of this offer by signing below and return it to me by fax
630-572-8518.  If you have any questions
regarding this offer, please contact me at 630-572-8231.

Sincerely yours,

/s/ Robert A. Peterson

Robert Peterson

	
   /s/ William Hayes

  	
   

  	
  September 8, 2006

  	
   

  
	
  William Hayes

  	
   

  	
  Date

  

 

 4Exhibit
10.2

AMENDMENT NO. 1

TO THE

2005
OPTION PLAN OF SAFETY PRODUCTS HOLDINGS, INC.

In accordance with the
power reserved to it in Section 7.3 of the 2005 Option Plan of Safety Products
Holdings, Inc. (the “Plan”), the Board of Directors of Safety Products
Holdings, Inc. (the “Company”) hereby amends the Plan, effective October 18,
2006, as follows:

Section 2.1 of the Plan is hereby
amended in its entirety to read as follows:

“2.1         Shares Subject to Plan.       The shares of stock subject to Options
shall be shares of Common Stock.  Subject
to Section 7.1, the aggregate number of such shares which may be issued upon
exercise of Options or otherwise under the Plan shall not exceed the 207,000
shares reserved for issuance to certain management stockholders pursuant to the
Management Subscription Agreement (as that term is defined in the Recitals to
the Management Stockholders Agreement) plus 1,436,631 shares which shall be
reserved for issuance upon exercise of Options granted to Employees and
Consultants performing the functions of an Employee.”

Section 7.2 of the Plan is hereby
amended by adding the following to the beginning of the section:

“Except as
otherwise provided in an Option Agreement,”

To record the adoption of
this Amendment No. 1 to the Plan, the Company has caused its authorized
officers to affix its corporate name and seal this 18th day of October, 2006.

	
  [CORPORATE SEAL]

  	
  SAFETY PRODUCTS HOLDINGS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Robert A. Peterson

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