Document:

<PAGE>

                                                                   EXHIBIT 10.12

                              HCI ACQUISITION CORP.

                         EXECUTIVE SECURITIES AGREEMENT

      THIS EXECUTIVE SECURITIES AGREEMENT (this "Agreement") is made as of March
31, 2004, by and between HCI Acquisition Corp., a Delaware corporation ("HCI"),
and Max W. Hillman, Jr. (the "Executive Securityholder," and, together with the
other executives who execute an agreement with HCI or the Company (as defined
below) having terms substantially similar to those contained herein, the
"Executive Securityholders"). Certain capitalized terms used herein are defined
in Section 6 hereof.

      HCI, The Hillman Companies, Inc., a Delaware corporation ("Hillman"), and
the stockholders and optionholders of Hillman, including the Executive
Securityholder, have entered into the Agreement and Plan of Merger, dated as of
February 14, 2004 (the "Merger Agreement"), pursuant to which HCI will be merged
with and into Hillman on the date hereof (the "Merger") with Hillman being the
surviving corporation in the Merger (the surviving corporation in the Merger
being hereinafter referred to as the "Company").

      Effective upon the consummation of the Merger and without any action by
HCI, Hillman, the Company or the Executive Securityholder, the Company, as the
surviving corporation in the Merger, will assume all of HCI's obligations, and
become entitled to all of HCI's rights, under this Agreement.

      The Executive Securityholder owns (i) 17,759 shares (the "Rollover Stock")
of Hillman's common stock, par value $0.01 per share (the "Hillman Common
Stock"), and (ii) options to purchase 78,194 shares of Hillman Common Stock (the
"Rollover Options" and together with the Rollover Stock, the "Rollover
Securities").

      Section 1.7(c)(ii) of the Merger Agreement provides that, without any
action on the part of HCI, Hillman, the Company or the Executive Securityholder,
the Executive Securityholder's Rollover Stock shall not be cancelled and
converted into the right to receive the Per Share Closing Merger Consideration
(as defined in the Merger Agreement), but instead such shares of Rollover Stock
shall be cancelled and converted into a right to receive such number of shares
of common stock and/or preferred stock of the Company as HCI and the Executive
Securityholder may so agree.

      Section 1.7(d)(ii) of the Merger Agreement provides that, without any
action on the part of HCI, Hillman, the Company or the Executive Securityholder,
the Executive Securityholder's Rollover Options shall not be cancelled and
converted into the right to receive the Option Consideration (as defined in the
Merger Agreement), but instead such Rollover Options shall be cancelled and
converted into a right to receive such number of options to purchase shares of
preferred stock of the Company and/or of Hillman Investment Company, a Delaware
corporation

                                       1
<PAGE>

(the "Investment Company"), as HCI and the Executive Securityholder may so
agree. None of the options granted hereunder are intended to be an "incentive
stock option" within the meaning of Section 422 of the Internal Revenue Code (as
defined below).

      The parties hereto desire to enter into this Agreement for the purposes,
among others, of (i) enabling the Executive Securityholder to cancel and
exchange the Rollover Securities for the applicable Executive Securities (as
defined below) in the manner provided herein and in the Merger Agreement, (ii)
assuring continuity in the management and ownership of the Company and (iii)
limiting the manner and terms by which the Executive Securities may be
transferred.

      NOW, THEREFORE, in consideration of the mutual covenants contained herein
and other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the parties to this Agreement hereby agree as follows:

      1.    Cancellation and Issuance of Rollover Securities for Executive
            Securities.

      (a) Purchased Equity.

            (i) Upon consummation of the Merger and in accordance with the
      provisions of Sections 1.7(c)(ii) and 1.8(a) of the Merger Agreement,
      5,795 shares of the Rollover Stock owned by the Executive Securityholder
      shall be cancelled and converted into 166.357 shares of the Company's
      Class A Common Stock, par value $0.01 per share (the "Class A Common
      Stock").

            (ii) Upon consummation of the Merger and in accordance with the
      provisions of Sections 1.7(d)(ii) and 1.8(a) of the Merger Agreement,
      Rollover Options to purchase 78,194 shares of Hillman Common Stock shall
      be cancelled and exchanged for (A) an option (the "Company Preferred
      Purchased Option") to purchase 1,322.220 shares of the Preferred Stock and
      (B) an option (the "Investment Company Preferred Purchased Option") to
      purchase 922.479 shares of the Investment Company's Class A Preferred
      Stock, par value $0.01 per share (the "Investment Company Preferred"), in
      each case, at the applicable Exercise Price per share of underlying stock.
      The Company Preferred Purchased Option and the Investment Company
      Preferred Purchased Option issued to the Executive Securityholder pursuant
      to this Section 1(a)(ii) are hereafter collectively referred to as the
      "Purchased Options."

            (iii) The shares of Class A Common Stock and the Purchased Options
      issued to the Executive Securityholder pursuant to this Section 1(a) are
      collectively referred to hereafter as the "Purchased Equity".

      (b) Incentive Equity. Upon consummation of the Merger and in accordance
with the provisions of Sections 1.7(c)(ii) and 1.8(a) of the Merger Agreement,
11,964 shares of the Rollover Stock owned by the Executive Securityholder shall
be cancelled and converted into 343.438 shares of the Company's Class B Common
Stock, par value $0.01 per share (the "Class B Common Stock"). The shares of
Class B Common Stock issued to the Executive

                                       2
<PAGE>

Securityholder pursuant to this Section 1(b) are hereafter collectively referred
to as the "Incentive Equity."

      (c) Preferred Options. Upon consummation of the Merger, (i) the Company
shall grant to the Executive Securityholder an option to purchase 3,243.652
shares of the Preferred Stock and (ii) the Investment Company hereby shall grant
to the Executive Securityholder an option to purchase 2,263.013 shares of the
Investment Company Preferred, in each case, at the applicable Exercise Price per
share of underlying Preferred Stock or Investment Company Preferred, as the case
may be. The options granted to the Executive Securityholder pursuant to this
Section 1(c) are hereinafter collectively referred to as the "Preferred
Options".

      (d) Closing. The closing of the transactions contemplated by Sections
1(a), 1(b) and 1(c) (the "Closing") shall take place at the offices of Kirkland
& Ellis LLP, 200 East Randolph Drive, Chicago, Illinois at 10:00 a.m. on the
date hereof, or at such other place or on such other date as may be mutually
agreeable to the Company and the Executive Securityholder.

      (e) Surrender and Exchange of Certificates. The Company shall deliver to
the Executive Securityholder copies of the certificates representing the
Executive Securityholder's Executive Securities (to the extent such Executive
Securities are represented by certificates), and the Executive Securityholder
shall deliver to the Company stock certificates evidencing the Executive
Securityholder's Rollover Stock duly endorsed for transfer or accompanied by
appropriate transfer documents pursuant to the Merger Agreement. Until the
occurrence of a Sale of the Company, all certificates evidencing the Executive
Securities shall be held by the Company for the benefit of the Executive
Securityholder and the other holder(s) of Executive Securities. Upon the
occurrence of a Sale of the Company, the Company will return the certificates
for the Executive Securities to the record holders thereof. Upon the occurrence
of a Public Offering, the Company will return to the record holders thereof
certificates representing the Executive Securities (other than with respect to
any Executive Securities that remain unvested).

      (f) Representations and Warranties. The Executive Securityholder
represents and warrants that:

            (i) the Executive Securities to be acquired by the Executive
      Securityholder pursuant to this Agreement and the Merger Agreement shall
      be acquired for the Executive Securityholder's own account and not with a
      view to, or intention of, distribution thereof in violation of the
      Securities Act, or any applicable state securities laws, and the Executive
      Securities shall not be disposed of in contravention of the Securities Act
      or any applicable state securities laws;

            (ii) the Executive Securityholder will be, upon consummation of the
      Merger, an executive officer of the Company or a Subsidiary thereof, is
      sophisticated in financial matters and is able to evaluate the risks and
      benefits of the investment in the Executive Securities;

                                       3
<PAGE>

            (iii) the Executive Securityholder is able to bear the economic risk
      of his or her investment in the Executive Securities for an indefinite
      period of time. The Executive Securityholder understands that the
      Executive Securities have not been registered under the Securities Act
      and, therefore, cannot be sold, and in certain circumstances, transferred,
      unless subsequently registered under the Securities Act or an exemption
      from such registration is available;

            (iv) the Executive Securityholder has had an opportunity to ask
      questions and receive answers concerning the terms and conditions of the
      offering of the Executive Securities and has had full access to such other
      information concerning the Company as he or she has requested;

            (v) the Executive Securityholder is an "accredited investor" as such
      term is defined under the Securities Act and the rules and regulations
      promulgated thereunder; and

            (vi) this Agreement constitutes the legal, valid and binding
      obligation of the Executive Securityholder, enforceable in accordance with
      its terms, and the execution, delivery and performance of this Agreement
      by the Executive Securityholder does not and shall not conflict with,
      violate or cause a breach of any agreement, contract or instrument to
      which the Executive Securityholder is a party or any judgment, order or
      decree to which the Executive Securityholder is subject.

      (g) No Employment Obligation. As an inducement to the Company to issue the
Executive Securities to the Executive Securityholder hereunder, and as a
condition thereto, the Executive Securityholder acknowledges and agrees that:

            (i) neither the issuance of the Executive Securities to the
      Executive Securityholder hereunder nor any provision contained herein
      shall entitle the Executive Securityholder to remain in the employment of
      the Company or any of its Subsidiaries or affect the right of the Company
      or any of its Subsidiaries to terminate the Executive Securityholder's
      employment at any time; and

            (ii) neither the Company nor its Subsidiaries shall have any duty or
      obligation to disclose to the Executive Securityholder, and the Executive
      Securityholder shall have no right to be advised of, any information
      regarding the Company or its Subsidiaries (except in connection with a
      determination of the Fair Market Value of the Executive Securities) at any
      time prior to, upon or in connection with the repurchase of the Executive
      Securities upon the termination of Executive Securityholder's employment
      with the Company or any of its Subsidiaries or as otherwise provided
      hereunder.

      (h) 83(b) Election. Within 30 days after the date of hereof, the Executive
Securityholder will make an effective election with respect to his Incentive
Equity with the Internal Revenue Service under Section 83(b) of the Internal
Revenue Code of 1986, as amended

                                       4
<PAGE>

(the "Internal Revenue Code") and the regulations promulgated thereunder in the
form of Exhibit A attached hereto.

            (i) Stock Powers. At the Closing, (i) the Executive Securityholder
      shall execute in blank ten stock transfer powers in the form of Exhibit B
      attached hereto (the "Stock Powers") with respect to his Purchased Equity
      represented by certificates and Incentive Equity and shall deliver such
      Stock Powers to the Company. The Stock Powers shall authorize the Company
      to assign, transfer and deliver the shares of Purchased Equity represented
      by certificates and Incentive Equity to the appropriate acquirer thereof
      pursuant to Section 4 below or Section 6 of the Stockholders Agreement and
      under no other circumstances and (ii) the Executive Securityholder's
      spouse shall execute the consent in the form of Exhibit C attached hereto.

      (j) Investment Company. Upon consummation of the Merger, the Company shall
cause the Investment Company to execute a joinder to this Agreement in the form
of Exhibit D attached hereto, and the parties hereto agree that upon execution
of such joinder the Investment Company shall become a party hereto.

      2. Vesting of Executive Securities.

      (a) Vesting of Purchased Equity. All Purchased Equity shall be fully
vested, and with respect to the Purchased Options, fully exercisable, upon
issuance hereunder.

      (b) Vesting of Incentive Equity. The Executive Securityholder's Incentive
Equity shall be subject to vesting in the manner specified in this Section 2(b).

            (i) Except as otherwise provided in this Section 2(b), the shares of
      Incentive Equity will become vested in accordance with the following
      schedule, if as of each such date the Executive Securityholder is still
      employed by the Company or any of its Subsidiaries:

<TABLE>
<CAPTION>
                                                        Cumulative Percentage of
            Date                                      Incentive Equity to be Vested
            ----                                      -----------------------------
<S>                                                   <C>
1st Anniversary of date hereof                                      20%

2nd Anniversary of date hereof                                      40%

3rd Anniversary of date hereof                                      60%

4th Anniversary of date hereof                                      80%

5th Anniversary of date hereof                                     100%
</TABLE>

            (ii) Upon the occurrence of a Sale of the Company, all of the
      Executive Securityholder's shares of Incentive Equity which have not yet
      become vested shall become vested at the time of such event, if as of the
      date of such event the Executive Securityholder is still employed by the
      Company or any of its Subsidiaries.

                                       5
<PAGE>

      (c) Vesting of Preferred Options. The Preferred Options may be exercised
only to the extent they have become vested. The Executive Securityholder's
Preferred Options shall be subject to vesting in the manner specified in this
Section 2(c).

            (i) Except as otherwise provided in this Section 2(c), the Preferred
      Options will become vested in accordance with the following schedule, if
      as of each such date the Executive Securityholder is still employed by the
      Company or any of its Subsidiaries:

<TABLE>
<CAPTION>
                                                        Cumulative Percentage of
            Date                                      Preferred Options to be Vested
            ----                                      ------------------------------
<S>                                                   <C>
1st Anniversary of date hereof                                      20%

2nd Anniversary of date hereof                                      40%

3rd Anniversary of date hereof                                      60%

4th Anniversary of date hereof                                      80%

5th Anniversary of date hereof                                     100%
</TABLE>

            (ii) Upon the occurrence of a Sale of the Company, all of the
      Executive Securityholder's Preferred Options which have not yet become
      vested shall become vested and fully exercisable at the time of such
      event, if as of the date of such event the Executive Securityholder is
      still employed by the Company or any of its Subsidiaries.

      (d) Expiration of Preferred Options and Purchased Options. The Preferred
Options shall expire at the close of business on March 31, 2014 and the
Purchased Options shall expire at the close of business on March 31, 2028 (in
either case, such date being hereinafter referred to as the "Expiration Date"),
subject to earlier expiration as provided herein. In no event shall any part of
the Executive Securityholder's Preferred Options and Purchased Options be
exercisable after the applicable Expiration Date. Except as otherwise provided
herein, any portion of the Executive Securityholder's Preferred Options that was
not vested and exercisable as of the date his employment with the Company or any
of its Subsidiaries terminated shall expire and be cancelled on such date.

      3. Restrictions on Transfer of Executive Securities; Restriction on
Conversion of Common Stock.

      (a) Transfer of Executive Securities.

            (i) The holders of Executive Securities shall not sell, transfer,
      assign, pledge or otherwise dispose of (a "Transfer") any interest in any
      Executive Securities (other than Purchased Options and Preferred Options
      that have not been exercised), except pursuant to (i) the provisions of
      Sections 5 and 6 of the Stockholders Agreement, (ii) the provisions of
      Section 3 of the Investment Company Stockholders Agreement, (iii) a Sale
      of the Company, (iv) the provisions of Section 3(b) hereof or (v) the
      provisions of Section 4 hereof.

                                       6
<PAGE>

            (ii) The Purchased Options and the Preferred Options are personal to
      the Executive Securityholder, and any Purchased Options or Preferred
      Options that have not been exercised in accordance with the terms hereof
      are not transferable by the Executive Securityholder other than by (i)
      will or the laws of descent and distribution, (ii) the provisions of
      Section 4 hereof and (iii) the provisions of Section 7(b) hereof.

      (b) Certain Permitted Transfers. The restrictions set forth in Section
3(a)(i) shall not apply with respect to any Transfer of Executive Securities
made (i) pursuant to applicable laws of descent and distribution or to such
Person's legal guardian in case of any mental incapacity or among such Person's
Family Group, or (ii) at such time as the Investor Group sells Common Stock in a
Public Sale, but in the case of this clause (ii) only an amount (the "Transfer
Amount") equal to the number of Vested Shares owned by the Executive
Securityholder multiplied by a fraction (the "Transfer Fraction"), the numerator
of which is the number of shares of Common Stock sold by the Investor Group in
such Public Sale and the denominator of which is the total number of shares of
Common Stock held by the Investor Group prior to the Public Sale; provided that,
if at the time of a Public Sale by the Investor Group, the Executive
Securityholder chooses not to Transfer the Transfer Amount, the Executive
Securityholder shall retain the right to Transfer an amount of Vested Shares at
a future date equal to the number of Vested Shares owned by the Executive
Securityholder at such future date multiplied by the Transfer Fraction; provided
further that, the restrictions contained in this Section 3 will continue to be
applicable to the Executive Securities after any Transfer of the type referred
to in clause (i) and the transferees of such Executive Securities will agree in
writing to be bound by the provisions of this Agreement. Any transferee of
Executive Securities pursuant to a transfer in accordance with the provisions of
this Section 3(b) is herein referred to as a "Permitted Transferee." Upon the
transfer of Executive Securities pursuant to this Section 3(b), the transferring
Executive Securityholder will deliver a written notice (a "Transfer Notice") to
the Company. In the case of a Transfer pursuant to clause (i) hereof, the
Transfer Notice will disclose in reasonable detail the identity of the Permitted
Transferee(s).

      (c) Termination of Restrictions. The restrictions set forth in Sections
3(a)(i) and 3(b) above will continue with respect to each of the Executive
Securities until the earlier of (i) the date on which such Executive Securities
have been transferred in a Public Sale as permitted by this Section 3 or (ii)
the consummation of a Sale of the Company. The restrictions set forth in Section
3(a)(ii) will not terminate.

      (d) Legends. The certificates representing the Executive Securities will
bear a legend in substantially the following form:

      "THE SECURITIES REPRESENTED BY THIS CERTIFICATE WERE ORIGINALLY ISSUED AS
      OF MARCH 31, 2004, HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
      1933, AS AMENDED (THE "ACT"), AND MAY NOT BE SOLD OR TRANSFERRED IN THE
      ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT OR AN
      EXEMPTION FROM REGISTRATION THEREUNDER. THE SECURITIES REPRESENTED BY THIS
      CERTIFICATE ARE ALSO

                                       7
<PAGE>

      SUBJECT TO ADDITIONAL RESTRICTIONS ON TRANSFER, CERTAIN REPURCHASE OPTIONS
      AND CERTAIN OTHER AGREEMENTS SET FORTH IN AN EXECUTIVE SECURITIES
      AGREEMENT BETWEEN THE COMPANY AND AN EXECUTIVE OF THE COMPANY DATED AS OF
      MARCH 31, 2004. A COPY OF SUCH AGREEMENT MAY BE OBTAINED BY THE HOLDER
      HEREOF AT THE COMPANY'S PRINCIPAL PLACE OF BUSINESS WITHOUT CHARGE."

      4. Repurchase of Executive Securities.

      (a) Repurchase of Purchased Equity.

            (i) If the Executive Securityholder's employment terminates due to
      termination by the Company or any of its Subsidiaries with Cause, then the
      Company, the Investment Company (in the case of Executive Securities of
      the Investment Company) and the Investor Group shall have the right to
      repurchase the Executive Securityholder's Purchased Equity (A) at a price
      per share of Purchased Equity (other than Purchased Options) equal to the
      lesser of the Fair Market Value and the Original Cost thereof and (B) with
      respect to the Purchased Options, at a price per share of Purchased Option
      Underlying Stock equal to (I) the lesser of the Fair Market Value and
      Original Cost less (II) the Exercise Price payable with respect each such
      share of Purchased Option Underlying Stock.

            (ii) Upon a resignation by the Executive Securityholder without Good
      Reason, the Executive Securityholder shall have the right to require the
      Company or the Investment Company (in the case of Executive Securities of
      the Investment Company) to repurchase his Purchased Equity (a "Purchased
      Equity Put"), or if the Executive Securityholder does not exercise the
      Purchased Equity Put in accordance with the terms hereof, the Company, the
      Investment Company (in the case of Executive Securities of the Investment
      Company) and the Investor Group shall have the right to repurchase the
      Executive Securityholder's Purchased Equity, in either case, (A) at a
      price per share of Purchased Equity (other than Purchased Options) equal
      to the Fair Market Value thereof and (B) with respect to the Purchased
      Options, at a price per share of Purchased Option Underlying Stock equal
      to the Fair Market Value thereof less any Exercise Price payable with
      respect each such share of Purchased Option Underlying Stock; provided
      that after the closing of the Purchased Equity Put with the Executive
      Securityholder (including delivery of all the Executive Securities by the
      Executive Securityholder), the Company, the Investment Company (in the
      case of Executive Securities of the Investment Company) or the Investor
      Group shall be permitted to postpone payment of the amount owed in
      connection with the Purchased Equity Put exercised pursuant to this
      Section 4(a)(ii) for up to 2 years from the date of such resignation.

            (iii) If the Executive Securityholder's employment terminates due to
      (A) termination by the Company or any of its Subsidiaries without Cause,
      (B) death or Disability, (C) Retirement or (D) resignation by the
      Executive Securityholder for Good

                                       8
<PAGE>

      Reason, then the Executive Securityholder shall have a Purchased Equity
      Put, or if the Executive Securityholder does not exercise the Purchased
      Equity Put in accordance with the terms hereof, the Company, the
      Investment Company (in the case of Executive Securities of the Investment
      Company) and the Investor Group shall have a right to repurchase the
      Executive Securityholder's Purchased Equity, in either case, (I) at a
      price per share of Purchased Equity (other than Purchased Options) equal
      to the Fair Market Value and (II) with respect to the Purchased Options,
      at a price per share of Purchased Option Underlying Stock equal to the
      Fair Market Value less the Exercise Price payable with respect each such
      share of Purchased Option Underlying Stock.

      (b) Repurchase of Incentive Equity.

            (i) If the Executive Securityholder's employment terminates due to
      termination by the Company or any of its Subsidiaries with Cause, then the
      Company and the Investor Group shall have the right to repurchase the
      Executive Securityholder's Incentive Equity (whether Vested Incentive
      Equity or Unvested Incentive Equity) at a price per share equal to the
      lesser of the Fair Market Value and Original Cost.

            (ii) Upon a resignation by the Executive Securityholder without Good
      Reason after the third anniversary of the date hereof, the Executive
      Securityholder shall have the right to require the Company to repurchase
      his Incentive Equity (an "Incentive Equity Put"), or if the Executive
      Securityholder does not exercise the Incentive Equity Put in accordance
      with the terms hereof, the Company and the Investor Group shall have the
      right to repurchase shares of the Executive Securityholder's Incentive
      Equity, in either case, at a price per share of Vested Incentive Equity
      equal to the Fair Market Value and at a price per share of Unvested
      Incentive Equity equal to the lesser of the Fair Market Value and Original
      Cost; provided that after the closing of the Incentive Equity Put with the
      Executive Securityholder (including delivery of all the Executive
      Securities by the Executive Securityholder), the Company and the Investor
      Group shall be permitted to postpone payment of the amount owed in
      connection with the Incentive Equity Put exercised pursuant to this
      Section 4(b)(ii) for up to 2 years from the date of such resignation.

            (iii) Upon a resignation by the Executive Securityholder without
      Good Reason on or prior to the third anniversary of the date hereof, the
      Executive Securityholder shall have the right to exercise an Incentive
      Equity Put, or if the Executive Securityholder does not exercise the
      Incentive Equity Put in accordance with the terms hereof, then the Company
      and the Investor Group shall have the right to repurchase the shares of
      the Executive Securityholder's Incentive Equity (whether Vested Incentive
      Equity or Unvested Incentive Equity), in either case, at a price per share
      equal to the lesser of the Fair Market Value and Original Cost.

            (iv) If the Executive Securityholder's employment terminates due to
      (A) termination by the Company or any of its Subsidiaries without Cause,
      (B) death or Disability, (C) Retirement or (D) resignation by the
      Executive Securityholder for Good

                                       9
<PAGE>

      Reason, then the Executive Securityholder shall have an Incentive Equity
      Put, or if the Executive Securityholder does not exercise the Incentive
      Equity Put in accordance with the terms hereof, the Company and the
      Investor Group shall have a right to repurchase shares of the Executive
      Securityholder's Incentive Equity, in either case, at a price per share of
      Vested Incentive Equity equal to the Fair Market Value and at a price per
      share of Unvested Incentive Equity equal to the lesser of the Fair Market
      Value and Original Cost.

      (c) Repurchase of Preferred Options.

            (i) If the Executive Securityholder's employment terminates due to
      termination by the Company or any of its Subsidiaries with Cause, then the
      Company, the Investment Company (in the case of Executive Securities of
      the Investment Company) and the Investor Group shall have the right to
      repurchase the Executive Securityholder's Vested Preferred Options at a
      price per share of Preferred Option Underlying Stock equal to the lesser
      of the Fair Market Value and Original Cost less any Exercise Price payable
      with respect to each such share of Preferred Option Underlying Stock.

            (ii) Upon a resignation by the Executive Securityholder without Good
      Reason after the third anniversary of the date hereof, the Executive
      Securityholder shall have a right to require the Company or the Investment
      Company (in the case of Executive Securities of the Investment Company) to
      repurchase (a "Preferred Option Put") his Vested Preferred Options, or if
      the Executive Securityholder does not exercise the Preferred Option Put in
      accordance with the terms hereof, then the Company, the Investment Company
      and the Investor Group shall have a right to repurchase the Executive
      Securityholder's Vested Preferred Options, in either case, at a price per
      share of Preferred Option Underlying Stock equal to the Fair Market Value
      less any Exercise Price payable with respect to each such share of
      Preferred Option Underlying Stock; provided that after the closing of the
      Preferred Option Put with the Executive Securityholder (including delivery
      of all the Executive Securities by the Executive Securityholder), the
      Company, the Investor Group or the Investment Company shall be permitted
      to postpone payment of the amount owed in connection with a Preferred
      Option Put exercised pursuant to this Section 4(c)(ii) for up to 2 years
      from the date of the Executive Securityholder's resignation.

            (iii) Upon a resignation by the Executive Securityholder without
      Good Reason on or prior to the third anniversary of the date hereof, the
      Executive Securityholder shall have a Preferred Option Put on his Vested
      Preferred Options, or if the Executive Securityholder does not exercise
      the Preferred Option Put in accordance with the terms hereof, then the
      Company, the Investment Company (in the case of Vested Preferred Options
      held in the Investment Company) and the Investor Group shall have a right
      to repurchase the Executive Securityholder's Vested Preferred Options, in
      either case, at a price per share of Preferred Option Underlying Stock
      equal to the lesser of the Fair Market Value and Original Cost less any
      Exercise Price payable with respect to each such share of Preferred Option
      Underlying Stock.

                                       10
<PAGE>

            (iv) If the Executive Securityholder's employment with the Company
      or any of its Subsidiaries terminates due to (A) termination by the
      Company without Cause, (B) death or Disability, (C) Retirement or (D)
      resignation by the Executive Securityholder for Good Reason, then the
      Executive Securityholder shall have a Preferred Option Put for his Vested
      Preferred Options, or if the Executive Securityholder does not exercise
      the Preferred Option Put in accordance with the terms hereof, then the
      Company, the Investment Company (in the case of Vested Preferred Options
      held in the Investment Company) and the Investor Group shall have the
      right to repurchase the Executive Securityholder's Vested Preferred
      Options, in either case, at a price per share of Preferred Option
      Underlying Stock equal to the Fair Market Value less any Exercise Price
      payable with respect to each such share of Preferred Option Underlying
      Stock.

      (d) Put Option Procedures.

            (i) In the event that the Executive Securityholder becomes entitled
      to exercise a Put Option pursuant to this Section 4 (a "Put Event"), the
      Executive Securityholder (or his personal representative, if the Executive
      Securityholder is deceased or incompetent) may, at his or her discretion,
      exercise all (but not less than all) of the Put Options then exercisable
      for all (but not less than all) of the Executive Securities subject to the
      Put Options by delivering written notice (the "Put Notice") to the Company
      specifying the number of Executive Securities to be repurchased by the
      Company within 40 days following the occurrence of the Put Event (the "Put
      Option Exercise Period").

            (ii) Upon the delivery of the Put Notice and subject to the
      provisions herein and in the Put Notice, the Company or the Investment
      Company (in the case of Executive Securities of the Investment Company),
      as the case may be, shall, in accordance with the terms hereof promptly
      determine the purchase price for the Executive Securities (the "Put
      Price"), and, within 20 days after the determination of the Put Price,
      shall purchase and the Executive Securityholder shall sell the number of
      the Executive Securities specified in the Put Notice at a mutually
      agreeable time and place.

            (iii) Notwithstanding any provision herein to the contrary and
      subject to Section 4(f) hereof, the maximum amount that the Company or the
      Investment Company collectively shall be required to pay during each
      calendar year in connection with the Put Options held by the Executive
      Securityholders is $5,000,000 (the "Put Option Cap"). In the event that
      the aggregate purchase price for the Put Options exercised by the
      Executive Securityholders in any calendar year exceeds the Put Option Cap,
      the amount of such excess shall be applied to the Put Option Cap for the
      next calendar year or succeeding years.

            (iv) The Company and the Investment Company will be entitled to
      receive customary representations and warranties from the sellers
      regarding such sale and to require that all sellers' signatures be
      guaranteed.

      (e) Repurchase Option Procedures.

                                       11
<PAGE>

            (i) Repurchase Option Procedure for the Company. With respect to any
      repurchase option other than a Put Option (which shall be governed by the
      procedures set forth in Section 4(d)) and subject to the Executive
      Securityholder's prior right to exercise a Put Option upon the occurrence
      of a Put Event, the Company or the Investment Company (in the case of
      Executive Securities of the Investment Company) may elect to repurchase
      all or any portion of the Executive Securities subject to repurchase as
      provided herein (the "Available Securities") of an Executive
      Securityholder whose employment with the Company or any of its
      Subsidiaries has terminated (the "Termination") as described in Sections
      4(a), 4(b) or 4(c) (the "Repurchase Option") by delivery of written notice
      (a "Repurchase Notice") to the holders of such Executive Securities within
      120 days after the date of the Termination (the "Repurchase Notice
      Period") if a Put Event has not occurred, or if a Put Event has occurred,
      within 120 days following the expiration of the Put Option Exercise
      Period. The Repurchase Notice shall set forth the aggregate consideration
      to be paid for such Available Securities and the time (not to be later
      than 20 days after such notice) and place for the closing of the
      transaction.

            (ii) Repurchase Option Procedure for Investor Group. If for any
      reason the Company or the Investment Company (in the case of Executive
      Securities of the Investment Company) does not elect to purchase all of
      the Available Securities, the Investor Group shall be entitled to exercise
      the Repurchase Option for all or any portion of the Available Securities.
      As soon as practicable after the Company or the Investment Company (in the
      case of Executive Securities of the Investment Company) has determined
      that it will not purchase all of the Available Securities, but in any
      event within 80 days after the Termination if a Put Event has not
      occurred, or if a Put Event has occurred, within 80 days following the
      expiration of the Put Option Exercise Period, the Company or the
      Investment Company (in the case of Executive Securities of the Investment
      Company) shall give written notice (the "Option Notice") to each member of
      the Investor Group setting forth the number of Available Securities and
      the purchase price for the Available Securities. The members of the
      Investor Group may elect to purchase all or any portion of the Available
      Securities by giving written notice to the Company or the Investment
      Company (in the case of Executive Securities of the Investment Company)
      within 30 days after the Option Notice has been delivered to such member
      of the Investor Group by the Company or the Investment Company (in the
      case of Executive Securities of the Investment Company). If the members of
      the Investor Group elect to purchase an aggregate amount of Available
      Securities in excess of the amount of Available Securities specified in
      the Option Notice, the Available Securities shall be allocated among the
      members of the Investor Group based on the amount of such type or types of
      Stockholder Shares (as defined in the Stockholders Agreement) owned by
      each member of the Investor Group on the date of the Option Notice and the
      type of Available Securities. Any member of the Investor Group may
      condition his, her or its election to purchase such Available Securities
      on the election of one or more other members of the Investor Group to
      purchase Available Securities. As soon as practicable, and in any event
      within ten days after the expiration of the 30-day period set forth above,
      the Company or the Investment Company (in the case of Executive Securities
      of the

                                       12
<PAGE>

      Investment Company) shall deliver a notice to the holders of such
      Available Securities setting forth the aggregate consideration to be paid
      by the respective members of the Investor Group for such Available
      Securities and the time (not to be later than 20 days after such notice)
      and place for the closing of the transaction. At the time the Company or
      the Investment Company (in the case of Executive Securities of the
      Investment Company) delivers such notice to the holders of such Available
      Securities, the Company or the Investment Company (in the case of
      Executive Securities of the Investment Company) shall also deliver written
      notice to each member of the Investor Group setting forth the amount of
      securities such member is entitled to purchase, the aggregate purchase
      price and the time and place of the closing of the transaction.

            (iii) Representations and Warranties; Signatures. The Company, the
      Investment Company (in the case of Executive Securities of the Investment
      Company) and the Investor Group, as the case may be, will be entitled to
      receive customary representations and warranties from the sellers
      regarding such sale and to require that all sellers' signatures be
      guaranteed.

            (iv) Revocation. Notwithstanding anything to the contrary contained
      in this Agreement, if in connection with a Repurchase Option the holder of
      Executive Securities delivers the notice of disagreement described in the
      definition of Fair Market Value, or if the Fair Market Value of the
      Executive Securities is determined to be an amount more than 10% greater
      than the repurchase price for Executive Securities originally determined
      by the Board, each of the Company, the Investment Company (in the case of
      Executive Securities of the Investment Company) and each member of the
      Investor Group who has exercised its, their or his Repurchase Option shall
      have the right to revoke its, their or his exercise of the Repurchase
      Option, as the case may be, for all or any portion of the Executive
      Securities elected to be repurchased by it, them or him by delivering
      notice of such revocation in writing to the holder of the Executive
      Securities during (A) the thirty-day period beginning on the date the
      Company, the Investment Company (in the case of Executive Securities of
      the Investment Company) and the relevant members of the Investor Group
      receive the Executive Securityholder's written notice of disagreement or
      (B) the thirty-day period beginning on the date the Company, the Executive
      Securityholder, the Investment Company (in the case of Executive
      Securities of the Investment Company) and the relevant members of the
      Investor Group are given written notice that the Fair Market Value of the
      Executive Securities was finally determined to be an amount more than 10%
      greater than the repurchase price for such Executive Securities originally
      determined by the Board. The closing of the transaction shall be postponed
      until the expiration of the thirty-day period described in the preceding
      sentence and shall in any event be postponed until the Fair Market Value
      of the Executive Securities is finally determined pursuant to the
      procedure described in the definition of Fair Market Value.

      (f) Manner of Payment. The Company, the Investment Company and/or a member
of the Investor Group, as applicable, shall pay for the Executive Securities to
be repurchased pursuant to the Repurchase Option or a Put Option by delivery of
a cashier's check or wire

                                       13
<PAGE>

transfer of funds. Alternatively, the Company or the Investment Company (in the
case of Executive Securities of the Investment Company) may pay the purchase
price for the Executive Securities to be repurchased pursuant to the Repurchase
Option or a Put Option by offsetting against any indebtedness or obligations for
advanced or borrowed funds owed by the applicable Executive Securityholder to
the Company or the Investment Company. Notwithstanding anything to the contrary
contained in this Agreement, all repurchases of Executive Securities by the
Company or the Investment Company shall be subject to applicable federal and
state laws and to restrictions contained in the Company's and its Subsidiaries'
debt financing arrangements. If any such laws or restrictions prohibit the
repurchase of Executive Securities hereunder which the Company or the Investment
Company is otherwise entitled to make, the time periods provided in this Section
4 shall be suspended, and the Company or the Investment Company may make such
repurchases as soon as it is permitted to do so under such laws or restrictions.
Alternatively, if and to the extent any such laws or restrictions prohibit the
repurchase of Executive Securities hereunder for cash, the Company or the
Investment Company (in the case of Executive Securities of the Investment
Company) may, at its sole option, repurchase such Executive Securities, in which
case the amount of the purchase price which is not able to be paid in cash shall
be paid for by the issuance of a subordinated promissory note, which, subject to
the approval of the senior and senior subordinated lender(s) of the Company and
its Subsidiaries, shall be payable as soon as the Company or the Investment
Company is permitted to pay such note under such laws or restrictions and shall
bear interest (payable annually) at a floating rate per annum equal to the prime
or base rate of interest (as established and publicly announced in The Wall
Street Journal).

      (g) Termination of Certain Repurchase Options. The Repurchase Options and
Put Options set forth in this Section 4 shall terminate with respect to the
Executive Securities (other than with respect to unvested Executive Securities)
upon (i) the date on which such Executive Securities have been transferred in a
Public Sale as permitted by Section 3 or (ii) consummation of a Sale of the
Company.

      (h) 2004 Stock Option Plan. To the extent that the Executive
Securityholder is granted an option to purchase shares of Common Stock under the
Company's 2004 Stock Option Plan, the written agreement pursuant to which such
option is granted shall include repurchase rights for the Company and/or such
other Persons as determined by the Company that are substantially similar to the
repurchase rights set forth in this Agreement with respect to the Executive
Securityholder's Incentive Equity.

      5. Transfer. Prior to transferring any Executive Securities (other than in
a Public Sale, a Sale of the Company, Section 4 hereof, Section 5 of the
Stockholders Agreement and Section 3 of the Investment Company Stockholders
Agreement) to any Person, the transferring Executive Securityholder will cause
the prospective transferee to be bound by this Agreement and to execute and
deliver to the Company a counterpart to this Agreement. Any Transfer or
attempted Transfer of any Executive Securities in violation of any provision of
this Agreement shall be void, and the Company shall not record such Transfer on
its books or treat any purported transferee of such Executive Securities as the
owner of such units for any purpose.

                                       14
<PAGE>

      6. Definitions.

      "Affiliate" means with respect to any Person, any other Person
controlling, controlled by, or under common control with such first Person and
in the case of a Person which is a partnership, any partner of that Person.

      "Board" means the Board of Directors of the Company.

      "Cause" has the meaning set forth in the Employment Agreement.

      "CHS" means Code Hennessy & Simmons IV LP, a Delaware limited partnership
and any Affiliate thereof.

      "Class C Common Stock" means the Company's Class C Common Stock, par value
$0.01 per share.

      "Common Stock" means the Company's Class A Common Stock, Class B Common
Stock and Class C Common Stock.

      "Disability " has the meaning set forth in the Employment Agreement.

      "Employment Agreement" means that certain Employment Agreement dated as of
the date hereof by and between the Executive Securityholder and the Company or
any of its Subsidiaries.

      "Executive Securities" shall mean the Purchased Equity, Incentive Equity
and Preferred Options collectively. Executive Securities will continue to be
Executive Securities in the hands of any holder other than the Executive
Securityholder (except for the Company, the Investment Company and other
Stockholders, and except for transferees in a Sale of the Company), and except
as otherwise provided herein, each such other holder of Executive Securities
will succeed to all rights and obligations attributable to the Executive
Securityholder as a holder of Executive Securities hereunder. Executive
Securities will also include the Company's and the Investment Company's
securities issued with respect to Executive Securities by way of a stock split
or stock dividend and securities into which such shares of stock or rights to
acquire stock may be changed by reason of a recapitalization, reorganization,
merger, consolidation or any other change in the structure or capitalization of
the Company, including but not limited to debt or shares of common stock and/or
preferred stock and/or options of any corporate successor to the business of the
Company or the Investment Company, whether issued in connection with a public
offering of securities of such entity or otherwise.

      "Exercise Price" with respect to (i) the Purchased Options, shall equal
$153.09 per share of Purchased Option Underlying Stock and (ii) the Preferred
Options, shall be $1,000 per share of Preferred Option Underlying Stock.

      "Fair Market Value" of any Executive Securities means the composite
closing price of the sales of such Executive Securities on the securities
exchanges on which such Executive

                                       15
<PAGE>

Securities may at the time be listed (as reported in The Wall Street Journal),
or, if there have been no sales on any such exchange on any day, the average of
the highest bid and lowest asked prices on all such exchanges at the end of such
day, or, if such Executive Securities are not so listed, the closing price (or
last price, if applicable) of sales of such Executive Securities on The Nasdaq
Stock Market (as reported in The Wall Street Journal), or if such Executive
Securities are not quoted in The Nasdaq Stock Market but are traded
over-the-counter, the average of the highest bid and lowest asked prices on such
day in the over-the-counter market as reported by the National Quotation Bureau
Incorporated, or any similar successor organization, in each such case averaged
over a period of 21 days consisting of the day as of which the Fair Market Value
is being determined and the 20 consecutive business days prior to such day. If
at any time such Executive Securities are not listed on any securities exchange,
quoted in The Nasdaq Stock Market, or quoted in the over-the-counter market, the
"Fair Market Value" of such Executive Securities shall mean the fair market
value of such Executive Securities as determined by the Board reasonably and in
good faith on an enterprise basis, taking into account all relevant factors
determinative of value (including the lack of liquidity of such Executive
Securities due to the Company's status as a privately held corporation, but
without regard to any discounts for minority interests), using valuation
techniques then prevailing in the securities industry (e.g., discounted cash
flows and/or comparable companies) and assuming full disclosure of all relevant
information and a reasonable period of time for effectuating such sale; provided
that upon the Executive Securityholder's request the Board shall provide the
Executive Securityholder with reasonable supporting information regarding the
Board's determination of the Fair Market Value; and further provided that if the
Executive Securityholder disagrees with the Board's determination of the Fair
Market Value, then the Executive Securityholder shall provide notice of his
disagreement to the Company and the Investor Group within thirty days after the
Board provides notice to the Executive Securityholder of its determination, in
which case the "Fair Market Value" shall be determined by an investment banking
firm agreed upon by the Company and the Executive Securityholder, which firm
shall submit to the Company and the Executive Securityholder a report within 30
days of its engagement setting forth such determination. If the parties are
unable to agree on an investment banking firm within 20 days after the Executive
Securityholder provides notice to the Board of his disagreement, the Company and
the Executive Securityholder shall each select an investment bank of recognized
national standing and such two investment banking firms shall select a third
investment banking firm. Such third investment banking firm shall render a
determination within 30 days of its engagement. The determination of such firm
will be final and binding upon all parties. If an investment banking firm is to
make the Fair Market Value determination hereunder, the Executive
Securityholder, on the one hand, and the Company, on the other hand, shall
submit in writing their respective estimates of the Fair Market Value at the
time the investment banking firm is requested to make such determination, and
such investment banking firm's determination of the Fair Market Value shall not
be higher than the highest estimate nor lower than the lowest estimate as
submitted by the Company and the Executive Securityholder. The fees, costs and
expenses of the investment banking firm shall be allocated between the Company,
on the one hand, and the Executive Securityholder, on the other hand, in the
same proportion that the amount by which such party's estimate of the Fair
Market Value so submitted to the investment banking differs from the Fair Market
Value (as finally determined by the investment banking firm) bears to the amount
of the

                                       16
<PAGE>

difference between such party's estimate of the Fair Market Value and the other
party's estimate of the Fair Market Value. If the Company, the Investment
Company (in the case of Executive Securities of the Investment Company) or the
Investor Group exercise their revocation rights under Section 4(e)(iv), then the
expenses of the investment banking firm shall be borne by the Company in all
cases. The Company may require that the investment banking firm keep
confidential any non-public information received as a result of this paragraph
pursuant to reasonable confidentiality arrangements. Regardless of when a
transaction based on a Fair Market Value valuation is executed, the Fair Market
Value shall be determined as of the date of the Termination of the Executive
Securityholder's employment with the Company or any of its Subsidiaries.
Notwithstanding the foregoing, the Executive Securityholder shall not have any
appraisal right hereunder if a similar appraisal right has been exercised by an
employee of any the Company or its Subsidiaries within the six months preceding
the day as of which Fair Market Value is being determined hereunder, and Fair
Market Value has been determined pursuant to such exercise of such appraisal
right.

      "Family Group" means (i) a Person's spouse and descendants (whether
natural or adopted), (ii) any trust solely for the benefit of the Person and/or
any of the Person's spouse and/or descendants and (iii) any entity wholly owned
by the Person.

      "Good Reason" has the meaning set forth in the Employment Agreement.

      "Investment Company Stockholders Agreement" means that certain
Stockholders Agreement dated as of the date hereof by and among the Investment
Company and certain stockholders of the Investment Company, as amended.

      "Investor Common Stock" means any Common Stock issued to or held by the
Investor Group.

      "Investor Group" means those persons set forth on Schedule A to this
Agreement.

      "Options" means the Preferred Options and the Purchased Options.

      "Original Cost" with respect to (i) shares of Class A Common Stock and
Class B Common Stock shall be equal to $1,000 per share and (ii) Purchased
Option Underlying Stock and Preferred Option Underlying Stock, shall be equal to
$1,000 per share of Preferred Stock and $1,000 per share of Investment Company
Preferred (in each case as adjusted for stock splits, stock dividends or other
recapitalizations occurring after the date hereof).

      "Person" means an individual, a partnership, a corporation, an
association, a limited liability company, a joint stock company, a trust, a
joint venture, an unincorporated organization or any other entity (including,
without limitation, any governmental entity or any department, agency or
political subdivision thereof).

      "Preferred Option Underlying Stock" means, with respect to the Preferred
Options, the shares of Preferred Stock underlying the option (whether exercised
or exercisable) granted to the

                                       17
<PAGE>

Executive Securityholder pursuant to Section 1(c)(i) hereof and the shares of
Investment Company Preferred underlying the option (whether exercised or
exercisable) granted to the Executive Securityholder pursuant to Section
1(c)(ii) hereof.

      "Preferred Stock" means the Company's Class A Preferred Stock, par value
$0.01 per share.

      "Public Offering" means an underwritten initial public offering and sale,
registered under the Securities Act, of shares of the Company's Common Stock.

      "Public Sale" means any sale of Executive Securities (i) to the public
pursuant to an offering registered under the Securities Act or (ii) to the
public through a broker, dealer or market maker pursuant to the provisions of
Rule 144 (or any similar provision then in effect) adopted under the Securities
Act (other than Rule 144(k) prior to a Public Offering).

      "Purchased Option Underlying Stock" means, with respect to the Purchased
Options, the shares of Preferred Stock underlying the Company Preferred
Purchased Option (whether exercised or exercisable) and the shares of Investment
Company Preferred underlying the Investment Company Preferred Purchased Option
(whether exercised or exercisable).

      "Put Option" means the Purchased Equity Put, Incentive Equity Put and
Preferred Option Put.

      "Registration Agreement" means the Registration Agreement dated as of the
date hereof by and among the Company and certain Stockholders of the Company.

      "Retire" or "Retirement" means the Executive Securityholder's retirement
from employment with the Company or any of its Subsidiaries at any time after he
reaches age 61.

      "Sale of the Company" means any transaction or series of transactions
pursuant to which any Person(s) or a group of related Persons (other than the
Investor Group and their Affiliates) in the aggregate acquire(s) (i) capital
stock of the Company possessing the voting power (other than voting rights
accruing only in the event of a default, breach or event of noncompliance) to
elect a majority of the Board (whether by merger, consolidation, reorganization,
combination, sale or transfer of the Company's capital stock, shareholder or
voting agreement, proxy, power of attorney or otherwise) or (ii) all or
substantially all of the Company's assets determined on a consolidated basis;
provided, that a Sale of the Company shall not include a Public Offering.

      "Securities Act" means the Securities Act of 1933, as amended from time to
time.

      "Stockholder" means any Person, other than the Company, who is a party to
the Stockholders Agreement as of the date hereof.

      "Stockholders Agreement" means that certain Stockholders Agreement dated
as of the date hereof by and among HCI and certain stockholders of HCI, as
amended from time to time in accordance with its terms.

                                       18
<PAGE>

      "Subsidiaries" means, with respect to any Person, any corporation, limited
liability company, partnership, association or other business entity of which
(i) if a corporation, a majority of the total voting power of shares of stock
entitled (without regard to the occurrence of any contingency) to vote in the
election of directors, managers or trustees thereof is at the time owned or
controlled, directly or indirectly, by such Person or one or more of the other
Subsidiaries of such Person or a combination thereof, or (ii) if a limited
liability company, partnership, association or other business entity, a majority
of the partnership or other similar ownership interest thereof is at the time
owned or controlled, directly or indirectly, by any Person or one or more
Subsidiaries of such Person or entity or a combination thereof. For purposes
hereof, a Person or Persons shall be deemed to have a majority ownership
interest in a limited liability company, partnership, association or other
business entity if such Person or Persons shall be allocated a majority of
limited liability company, partnership, association or other business entity
gains or losses or shall be or control any managing director or general partner
of such limited liability company, partnership, association or other business
entity.

      "Unvested Incentive Equity" means any shares of the Incentive Equity that
have not become vested pursuant to the terms of Section 2(b) of this Agreement.

      "Unvested Preferred Options" means any Preferred Options that have not
become vested pursuant to the terms of Section 2(c) of this Agreement.

      "Vested Incentive Equity" means any shares of the Incentive Equity that
have become vested pursuant to the terms of Section 2(b) of this Agreement.

      "Vested Preferred Options" means any Preferred Options that have become
vested pursuant to the terms of Section 2(c) of this Agreement.

      "Vested Shares" means the shares of Vested Incentive Equity as of the
applicable date of determination and shares of Common Stock issued to the
Executive Securityholder pursuant to Section 1(a)(i).

      7. Options.

      (a) Procedure for Exercise of Options. The Executive Securityholder may
exercise all (but not less than all) of his Options, to the extent they have
vested and are exercisable, at any time and from time to time prior to the
applicable Expiration Date, by delivering written notice to the Company or the
Investment Company, as applicable, (to the attention of the Company's or
Investment Company's Secretary, as applicable) and written acknowledgement by
the Executive Securityholder that he has reviewed and has been afforded an
opportunity to ask questions of management of the Company or the Investment
Company, as applicable, with respect to all financial and other information
provided to him regarding the Company or the Investment Company, as applicable,
together with payment of the Exercise Price for the Options being exercised.
Notwithstanding anything to the contrary contained in this Agreement, (i) the
Preferred Options must be exercised in tandem such that any exercise of a
Preferred Option to purchase shares of Preferred Stock or Investment Company
Preferred, as the case may be, must

                                       19
<PAGE>

be accompanied by an exercise of Preferred Options to purchase an equal number
shares of Investment Company Preferred and Preferred Stock, respectively and
(ii) the Purchased Options must be exercised in tandem such that any exercise of
the Company Preferred Purchased Option or the Investment Company Preferred
Purchased Option, as the case may be, must be accompanied by an exercise of the
Investment Company Preferred Purchased Option, in the case of an exercise of the
Company Preferred Purchased Option, and the Company Preferred Purchased Option,
in the case of an exercise of the Investment Company Preferred Purchased Option.
Subject to vesting, the Executive Securityholder's Options may be exercised in
whole or in part upon payment of an amount (the "Option Price") equal to the
product of (i) the applicable Exercise Price multiplied by (ii) the number of
shares of Purchased Option Underlying Stock or Preferred Option Underlying
Stock, as applicable, underlying the Options being exercised. Payment shall be
made in cash (including check, bank draft or money order). As a condition to any
exercise of the Options, the Executive Securityholder shall permit the Company
or the Investment Company, as applicable, to deliver to him all financial and
other information regarding the Company or the Investment Company, as
applicable, it believes necessary to enable him to make an informed investment
decision, and the Executive Securityholder shall make all customary investment
representations which the Company or the Investment Company, as applicable,
requires.

      (b) Sale of the Company. In the event of a Sale of the Company, the Board
may (i) terminate any unvested Options without payment or notice of any kind,
(ii) terminate any vested Options for a cash payment equal to the excess of the
Fair Market Value per share of Purchased Option Underlying Stock or Preferred
Option Underlying Stock, as applicable, (measured as of the date of such Sale of
the Company) over such Option's Exercise Price multiplied by the number of
shares of Purchased Option Underlying Stock or Preferred Option Underlying
Stock, as applicable, with respect to the Options to be terminated, or (iii)
terminate any vested Options without payment or notice of any kind to the extent
that the Fair Market Value per share of Purchased Option Underlying Stock or
Preferred Option Underlying Stock, as applicable (measured as of the date of
such Sale of the Company), is less than or equal to such Option's Exercise
Price.

      (c) Dividends. If either the Company or the Investment Company pays a
dividend upon the Preferred Stock or Investment Company Preferred, respectively,
then upon exercise of any Option which was outstanding at the time of the
payment of such dividend (the "Applicable Option"), the Executive Securityholder
shall be entitled to receive an amount equal to the dividend (and in the same
form of consideration as was received by the other dividend recipients) which
would have been paid to the Executive Securityholder had the Applicable Option
been fully exercised immediately prior to the date on which a record was taken
for such dividend or, if no record was taken, the date as of which the record
holders of the Preferred Stock or Investment Company Preferred, respectively,
entitled to such dividends were determined.

      8. Miscellaneous.

      (a) Amendment and Waiver. The provisions of this Agreement may be amended
and waived only with the prior written consent of the Company, the holders of a
majority of the

                                       20
<PAGE>

Investor Common Stock then outstanding, the Executive Securityholder and, for so
long as Ontario Teachers' Pension Plan Board, an Ontario corporation
("Teachers"), owns Stockholder Shares and shares of Investment Company Preferred
with an aggregate Original Cost (as defined in the Stockholders Agreement) to
Teachers of at least $25,000,000, Teachers. The failure of any party to enforce
any of the provisions of this Agreement will in no way be construed as a waiver
of such provisions and will not affect the right of such party thereafter to
enforce each and every provision of this Agreement in accordance with its terms.

      (b) Severability. Whenever possible, each provision of this Agreement will
be interpreted in such manner as to be effective and valid under applicable law,
but if any provision of this Agreement is held to be invalid, illegal or
unenforceable in any respect under any applicable law or rule in any
jurisdiction, such invalidity, illegality or unenforceability will not affect
any other provision or any other jurisdiction, but this Agreement will be
reformed, construed and enforced in such jurisdiction as if such invalid,
illegal or unenforceable provision had never been contained herein.

      (c) Agreement. Except as otherwise expressly set forth herein, in the
Merger Agreement, Stockholders Agreement or Registration Agreement, this
Agreement, those documents expressly referred to herein (including the
Stockholders Agreement) and other documents of even date herewith embody the
complete agreement and understanding among the parties and supersede and preempt
any prior understandings, agreements or representations by or among the parties,
written or oral, which may have related to the subject matter hereof in any way.

      (d) Successors and Assigns. Except as otherwise provided herein, this
Agreement will bind and inure to the benefit of and be enforceable by the
Company and its successors and assigns and the Investor Group and their
respective successors and assigns, so long as they hold shares of Investor
Common Stock.

      (e) Third Party Beneficiaries. The members of the Investor Group are
intended to be third-party beneficiaries of this entire Agreement and the rights
and obligations of the parties hereto. It is understood and agreed by the
parties hereto that this Agreement shall be enforceable by the holders of a
majority of the Investor Common Stock then outstanding in accordance with this
Agreement's terms as though such holders of Investor Common Stock were a party
to every provision hereof. Except as expressly provided herein, no other third
party beneficiaries are intended by the parties hereto to be beneficiaries
hereof.

      (f) Counterparts; Facsimile Signature. This Agreement may be executed in
separate counterparts each of which will be an original and all of which taken
together shall constitute one and the same agreement. This Agreement may be
executed by facsimile signature.

      (g) Remedies. Each of Company, the Investor Group and the Executive
Securityholder shall be entitled to enforce its rights under this Agreement
specifically to recover damages by reason of any breach of any provision of this
Agreement and to exercise all other rights existing in its favor. The parties
hereto agree and acknowledge that money damages may

                                       21
<PAGE>

not be an adequate remedy for any breach of the provisions of this Agreement and
that each of the Company, the Investor Group (acting by a majority vote of the
Investor Common Stock) and the Executive Securityholders may in its sole
discretion apply to any court of competent jurisdiction for specific performance
and/or injunctive relief (without posting a bond or other security) in order to
enforce or prevent any violation of the provisions of this Agreement.

      (h) Notices. Any notice provided for in this Agreement must be in writing
and must be either personally delivered, sent via facsimile, sent by first class
mail (postage prepaid and return receipt requested) or sent by reputable
overnight courier service (charges prepaid) to the Company and the Executive
Securityholder at the addresses set forth below and to any member of the
Investor Group at the address set forth on Schedule A attached hereto, or
subsequent holder of Executive Securities subject to this Agreement, at such
address as is indicated in the Company's records, or at such address or to the
attention of such other Person as the recipient party has specified by prior
written notice to the sending party. Notices will be deemed to have been given
hereunder when delivered personally, when confirmed if sent by facsimile, three
days after deposit in the U.S. mail and one day after deposit with a reputable
overnight courier service.

                           If to the Company:

                           HCI Acquisition Corp.
                           c/o Code Hennessy & Simmons LLC
                           10 South Wacker Drive, Suite 3175
                           Chicago, IL  60606
                           Facsimile: (312) 876-3854
                           Attn:    Peter M. Gotsch

                           with copies to:

                           Code Hennessy & Simmons IV LP
                           c/o Code Hennessy & Simmons LLC
                           10 South Wacker Drive, Suite 3175
                           Chicago, IL  60606
                           Facsimile: (312) 876-3854
                           Attn:    Peter M. Gotsch

                           and

                           Kirkland & Ellis LLP
                           200 East Randolph Drive
                           Chicago, IL  60601
                           Facsimile: (312) 861-2200
                           Attn:  Stephen L. Ritchie, P.C.

                                       22
<PAGE>

                           If to the Executive Securityholder:

                           Max W. Hillman, Jr.
                           c/o The Hillman Companies, Inc.
                           10590 Hamilton Avenue
                           Cincinnati, OH 45231

                           with a copy to:

                           Baker & Hostetler LLP
                           3200 National City Center
                           1900 East 9th Street
                           Cleveland, OH 44114-3485
                           Facsimile:  (216) 696-0740
                           Attn:  Elizabeth A. Dellinger

      (i) Governing Law. The corporate law of the State of Delaware shall govern
all issues and questions concerning the relative rights and obligations of the
Company and its Stockholders. All other issues and questions concerning the
construction, validity, enforcement and interpretation of this Agreement and the
exhibits hereto shall be governed by, and construed in accordance with, the laws
of the State of Delaware, without giving effect to any choice of law or conflict
of law rules or provisions (whether of the State of Delaware or any other
jurisdiction) that would cause the application of the laws of any jurisdiction
other than the State of Delaware.

      (j) MUTUAL WAIVER OF JURY TRIAL. BECAUSE DISPUTES ARISING IN CONNECTION
WITH COMPLEX TRANSACTIONS ARE MOST QUICKLY AND ECONOMICALLY RESOLVED BY AN
EXPERIENCED AND EXPERT PERSON AND THE PARTIES WISH APPLICABLE STATE AND FEDERAL
LAWS TO APPLY (RATHER THAN ARBITRATION RULES), THE PARTIES DESIRE THAT THEIR
DISPUTES BE RESOLVED BY A JUDGE APPLYING SUCH APPLICABLE LAWS. THEREFORE, TO
ACHIEVE THE BEST COMBINATION OF THE BENEFITS OF THE JUDICIAL SYSTEM AND OF
ARBITRATION, EACH PARTY TO THIS AGREEMENT HEREBY WAIVES ALL RIGHTS TO TRIAL BY
JURY IN ANY ACTION, SUIT, OR PROCEEDING BROUGHT TO RESOLVE ANY DISPUTE BETWEEN
OR AMONG ANY OF THE PARTIES HERETO, WHETHER ARISING IN CONTRACT, TORT, OR
OTHERWISE, ARISING OUT OF, CONNECTED WITH, RELATED OR INCIDENTAL TO THIS
AGREEMENT, THE TRANSACTIONS CONTEMPLATED HEREBY AND/OR THE RELATIONSHIP
ESTABLISHED AMONG THE PARTIES HEREUNDER.

      (k) Business Days. If any time period for giving notice or taking action
hereunder expires on a day which is a Saturday, Sunday or holiday in the state
in which the Company's chief executive office is located, the time period shall
be automatically extended to the business day immediately following such
Saturday, Sunday or holiday.

                                       23
<PAGE>

      (l) Indemnification and Reimbursement of Payments on Behalf of Executive
Securityholder. The Company and its Subsidiaries shall be entitled to deduct or
withhold from any amounts owing from the Company or any of its Subsidiaries to
Executive Securityholder any federal, state, local or foreign withholding taxes,
excise taxes, or employment taxes ("Taxes") imposed with respect to Executive
Securityholder's compensation or other payments from the Company or any of its
Subsidiaries or Executive Securityholder's ownership interest in the Company,
including, without limitation, wages, bonuses, dividends, the receipt or
exercise of equity options and/or the receipt or vesting of restricted equity.
In the event the Company or any of its Subsidiaries does not make such
deductions or withholdings, Executive Securityholder shall indemnify the Company
and its Subsidiaries for any amounts paid with respect to any such Taxes,
together with any interest, penalties and related expenses thereto.

      (m) Adjustments of Numbers. All numbers set forth herein that refer to per
share prices or amounts will be appropriately adjusted to reflect stock splits,
stock dividends, combinations of stock and other recapitalizations affecting the
subject class of equity.

      (n) Deemed Transfer of Executive Securities. If the Company (and/or the
Investor Group or any other Person acquiring securities) shall make available,
at the time and place and in the amount and form provided in this Agreement, the
consideration for the Executive Securities to be repurchased in accordance with
the provisions of this Agreement, then from and after such time, the Person from
whom such Executive Securities are to be repurchased shall no longer have any
rights as a holder of such Executive Securities (other than the right to receive
payment of such consideration in accordance with this Agreement) and such
Executive Securities shall be deemed purchased in accordance with the applicable
provisions hereof and the Company (and/or the Investor Group and/or any other
Person acquiring securities) shall be deemed the owner and holder of such
Executive Securities, whether or not the certificates therefor have been
delivered as required by this Agreement.

      (o) No Pledge or Security Interest. The purpose of the Company's retention
of Executive Securityholder's certificates is solely to facilitate the
repurchase provisions set forth in Section 4 herein and Section 6 of the
Stockholders Agreement and does not constitute a pledge by Executive
Securityholder of, or the granting of a security interest in, the underlying
equity.

      (p) Rights Granted to Investors and their Affiliates. Any rights granted
to an Investor and its Affiliates hereunder may also be exercised (in whole or
in part) by their designees.

      (q) Descriptive Headings. The descriptive headings of this Agreement are
inserted for convenience only and do not constitute a part of this Agreement.

      (r) Effect of Merger on this Agreement. Effective upon the consummation of
the Merger and without any action by HCI, Hillman, the Company or the Executive
Securityholder, the Company, as the surviving corporation in the Merger, shall
assume all of HCI's obligations, and become entitled to all of HCI's rights,
under this Agreement.

                                    * * * * *

                                       24
<PAGE>

      IN WITNESS WHEREOF, the parties hereto have executed this Executive
Securities Agreement on the day and year first above written.

COMPANY:                               HCI ACQUISITION CORP.

                                       By: /s/ PETER M. GOTSCH
                                           -------------------------------------

                                       Its:
                                           -------------------------------------

EXECUTIVE SECURITYHOLDER:              /s/ MAX W. HILLMAN
                                       -----------------------------------------
                                       Max W. Hillman, Jr.

                                       25
<PAGE>

                                                                      SCHEDULE A

Code Hennessy & Simmons IV LP
10 South Wacker Drive
Suite 3175
Chicago, IL 60606
Attention:  Peter M. Gotsch

CHS Associates IV
10 South Wacker Drive
Suite 3175
Chicago, IL 60606

Ontario Teachers' Pension Plan Board
5650 Yonge Street
Toronto, Ontario M2M4H5
Attention:  J. Mark MacDonald

                                       26<PAGE>

                                                                   EXHIBIT 10.13

                                                                       EXECUTION

                             THE HILLMAN GROUP, INC.

                              EMPLOYMENT AGREEMENT

      THIS EMPLOYMENT AGREEMENT (this "Agreement") is made as of March 31, 2004,
by and between The Hillman Group, Inc., a Delaware corporation (the "Company"),
and Richard P. Hillman ("Executive"). This Agreement is being executed
concurrently with the merger of HCI Acquisition Corp., a Delaware corporation,
with and into The Hillman Companies, Inc., a Delaware corporation and the
indirect parent of the Company ("Hillman").

      In consideration of the mutual covenants contained herein and other good
and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

      1. Employment. The Company shall employ Executive, and Executive hereby
accepts employment with the Company, upon the terms and conditions set forth in
this Agreement for the period beginning on the date hereof and ending as
provided in Section 4(a) hereof (the "Employment Period").

      2. Position and Duties.

      (a) During the Employment Period, Executive shall serve as the President
of the Company and shall have the normal duties, responsibilities, functions and
authority of the President, subject to the power and authority of the Board or
the Chief Executive Officer to expand or limit such duties, responsibilities,
functions and authority and to overrule actions of officers of the Company.
During the Employment Period, Executive shall render such administrative,
financial and other executive and managerial services to Hillman and its
Subsidiaries which are consistent with Executive's position as the Board or the
Chief Executive Officer may from time to time direct.

      (b) During the Employment Period, Executive shall report to the Board and
the Chief Executive Officer and shall devote his best efforts and his full
business time and attention (except for permitted vacation periods and
reasonable periods of illness or other incapacity) to the business and affairs
of Hillman and its Subsidiaries. Executive shall perform his duties,
responsibilities and functions to Hillman and its Subsidiaries hereunder to the
best of his abilities in a diligent, trustworthy, professional and efficient
manner and shall comply with the Company's and its Subsidiaries' policies and
procedures in all material respects. During the Employment Period, Executive
shall not serve as an officer or director of, or otherwise perform services for
compensation for, any other entity without the prior written consent of the
Board; provided that Executive may serve as an officer or director of, or
otherwise participate in, purely educational, welfare, social, religious or
civic organizations so long as such activities do not interfere with Executive's
employment.

<PAGE>

      (c) For purposes of this Agreement, "Subsidiaries" shall mean, with
respect to any Person, any corporation, limited liability company, partnership,
association, or business entity of which (i) if a corporation, a majority of the
total voting power of shares of stock entitled (without regard to the occurrence
of any contingency) to vote in the election of directors, managers, or trustees
thereof is at the time owned or controlled, directly or indirectly, by that
Person or one or more of the other Subsidiaries of that Person or a combination
thereof, or (ii) if a limited liability company, partnership, association, or
other business entity (other than a corporation), a majority of partnership or
other similar ownership interest thereof is at the time owned or controlled,
directly or indirectly, by any Person or one or more Subsidiaries of the Person
or a combination thereof. For purposes hereof, a Person or Persons shall be
deemed to have a majority ownership interest in a limited liability company,
partnership, association, or other business entity (other than a corporation) if
such Person or Persons shall be allocated a majority of limited liability
company, partnership, association or other business entity gains or losses or
shall be or control any managing director or member or general partner of such
limited liability company, partnership, association, or other business entity.
For purposes hereof, "Person" shall mean an individual, a partnership, a
corporation, a limited liability company, an association, a joint stock company,
a trust, a joint venture, an unincorporated organization, or a governmental
entity or any department, agency, or political subdivision thereof.

      3. Compensation and Benefits.

            (a) During the Employment Period, Executive's base salary shall be
$252,000 per annum or such higher rate as the Board may determine from time to
time (such amount, as may be increased from time to time based on no less
frequent than an annual review by the Board, the "Base Salary"), which Base
Salary shall be payable by the Company in regular installments in accordance
with the Company's general payroll practices in effect from time to time. During
the period beginning on the date of this Agreement and ending December 31, 2004,
the Base Salary shall be pro rated on an annualized basis. In addition, during
the Employment Period, Executive shall be entitled to participate in employee
benefit programs and receive perquisites reasonably comparable to those in
effect as of the date hereof and as determined by the Board, including, without
limitation, participation in group health insurance and disability insurance,
life insurance, MERP benefits (up to $2,500 of out-of-pocket medical expenses
per annum), participation in the Company's 401K plan, vacation and paid holidays
and participation in the Company's deferred compensation plan (provided that any
participation in such deferred compensation plan is funded solely by the
Executive other than match by the Company of $.25 per $1.00 up to $2,500).
During the Employment Period, the Company shall reimburse Executive for
reasonable expenses incurred by Executive in connection with leasing an
automobile (including lease payments, licenses and insurance) not to exceed $600
per month (or, if Executive seeks to purchase an automobile, reimbursement of
reasonable expenses incurred in connection with such purchase, including car
loan payments, licenses and insurance), subject to the Company's requirements
with respect to reporting and documentation of such expenses. Executive shall
bear the cost of gas, cost of repairs on the automobile, and costs of any
tickets, traffic offenses or fines of any kind.

      (b) During the Employment Period, the Company shall reimburse
Executive for all ordinary and reasonable business expenses incurred by him in
the course of performing his

                                       2
<PAGE>

duties and responsibilities under this Agreement which are consistent with the
Company's policies in effect from time to time with respect to travel,
entertainment and other business expenses, subject to the Company's requirements
with respect to reporting and documentation of such expenses.

    (c) In addition to the Base Salary, the Company shall pay to Executive cash
bonus compensation pursuant to the terms of a performance-based bonus plan. The
bonus plan will provide for performance-based targets to be agreed to annually
by the Chief Executive Officer of the Company and the Board. If 100% of such
bonus targets are met in a year, Executive shall be entitled to a bonus equal to
35% of his Base Salary for that year. If the Company and its Subsidiaries
perform at a level in excess of 100% of the bonus targets, the Executive shall
be entitled to a proportionately higher amount of bonus compensation up to a
maximum of 70% of his Base Salary for that year, i.e., with each 1% increase
above 100% of the bonus target, Executive shall be entitled to an additional
0.35% of his Base Salary for that year. Executive shall be entitled to bonus
compensation in a proportionately reduced amount if the Company and its
Subsidiaries perform at a level that is less than 100% of the bonus targets but
in excess of 85% of the bonus targets, i.e., with each 1% decrease below 100% of
the bonus target, Executive's bonus shall be reduced from the bonus he would
have received had the Company and its Subsidiaries met 100% of the bonus target
by 0.35% of his Base Salary for that year. Executive shall not be entitled to a
bonus if 85% or less of the bonus targets are met. Bonuses shall be paid in
accordance with the Company's general payroll practices (in effect from time to
time).

      4. Term.

            (a) The Employment Period shall be three years beginning on the date
hereof (the "Initial Term") and shall automatically be renewed on the same terms
and conditions set forth herein as modified from time to time by the parties
hereto for additional one-year periods unless the Company or Executive gives the
other party written notice of the election not to renew the Employment Period at
least 60 days prior to any such renewal date (the end of the Initial Term or the
end of an effective one-year extension period being referred to herein as the
"Expiration Date"); provided that (i) the Employment Period shall terminate
prior to its Expiration Date immediately upon Executive's resignation (with or
without Good Reason, as defined below), death or Disability, and (ii) the
Employment Period may be terminated by the Company at any time prior to its
Expiration Date for Cause (as defined below) or without Cause. Except as
otherwise provided herein, any termination of the Employment Period by the
Company shall be effective as specified in a written notice from the Company to
Executive.

            (b) In the event of Executive's death or Disability, or upon the
Expiration Date, Executive shall be entitled to payment of all accrued and
unpaid salary (including accrued vacation), expense reimbursement pursuant to
Section 3(b) of this Agreement, and a pro rata share (based on the number of
days that have elapsed from the beginning of the bonus period until the date of
termination of the Employment Period) of that year's bonus as determined
pursuant to Section 3(c) above. In addition, in the event of Executive's
Disability, the Company shall use commercially reasonable efforts to allow
Executive to participate in the Company's group health coverage, to the extent
permitted by its insurers and under the same terms and

                                       3
<PAGE>

conditions that generally apply to Company employees; provided that Executive
pays all of the premiums and similar costs and expenses for such coverage.
Executive shall not be entitled to receive his Base Salary, or any other
perquisites or employee benefits or bonuses for periods after the termination of
the Employment Period, except as otherwise specifically provided for in the
Company's employee benefit plans or as otherwise expressly required by
applicable law.

            (c) If the Employment Period is terminated by the Company for Cause,
or if Executive resigns without Good Reason, Executive shall only be entitled to
receive his Base Salary through the date of such termination, resignation or
expiration, accrued vacation and expense reimbursement pursuant to Section 3(b)
of this Agreement. In addition, the Company shall use commercially reasonable
efforts to allow Executive to participate in the Company's group health
coverage, to the extent permitted by its insurers and under the same terms and
conditions that generally apply to Company employees; provided that Executive
pays all of the premiums and similar costs and expenses for such coverage.
Executive shall not be entitled to any other salary, bonuses, employee benefits,
perquisites or other compensation from the Company or its Subsidiaries
thereafter, except as otherwise specifically provided for under the Company's
employee benefit plans or as otherwise expressly required by applicable law.

            (d) If the Employment Period is terminated by the Company without
Cause or if Executive resigns with Good Reason, then Executive shall be entitled
to receive severance compensation in an amount as determined below:

            (i) If, during the Initial Term, the Employment Period is terminated
      by the Company without Cause or if Executive resigns with Good Reason,
      then Executive shall be entitled to receive (A) an amount equal to two
      times his then applicable Base Salary, (B) an amount equal to the
      Termination Bonus Amount (as defined in Section 4(d)(iii)), and (C) health
      continuation coverage during the period beginning on the date of the
      termination of the Employment Period and ending on the first anniversary
      thereof, at the Company's expense. For purposes of determining Executive's
      rights to COBRA continuation coverage as required under Section 4980B of
      the Internal Revenue Code ("COBRA"), the date of termination of the
      Employment Period shall be the date of the COBRA qualifying event. In
      addition, Executive shall be permitted to participate, during the period
      beginning on the date of the termination of the Employment Period and
      ending on the first anniversary thereof, in the Company's group life and
      disability coverages, to the extent permitted by its insurers and under
      the same terms and conditions that generally apply to Company employees,
      at the Company's expense.

            (ii) If, after the Initial Term, the Employment Period is terminated
      by the Company without Cause or if Executive resigns with Good Reason,
      then Executive shall be entitled to receive (A) an amount equal to his
      then applicable Base Salary, (B) 50% of the Termination Bonus Amount (as
      defined in Section 4(d)(iii)), and (C) health continuation coverage during
      the period beginning on the date of the termination of the Employment
      Period and ending six months thereafter, at the Company's expense. For
      purposes of determining Executive's rights to COBRA continuation coverage,
      the date of termination of the Employment Period shall be the date of the
      COBRA qualifying event. In addition, Executive shall be permitted to
      participate, during the period beginning on

                                       4
<PAGE>

      the date of the termination of the Employment Period and ending six months
      thereafter, in the Company's group life and disability coverages, to the
      extent permitted by its insurers and under the same terms and conditions
      that generally apply to Company employees, at the Company's expense.

            (iii) The severance payments outlined in (i) and (ii) of this
      Section 4(d) are in addition to all accrued and unpaid Base Salary through
      the date of termination of the Employment Period, plus accrued vacation,
      plus a prorated portion (based on the number of days which have elapsed
      from the beginning of the bonus period until the date of termination of
      the Employment Period) of the bonus for the year in which the termination
      occurs (as determined pursuant to Section 3(c) above), plus expense
      reimbursement pursuant to Section 3(b) of this Agreement. In addition, the
      Company shall use commercially reasonable efforts to allow Executive to
      participate in the Company's group health coverage, to the extent
      permitted by its insurers and under the same terms and conditions that
      generally apply to Company employees; provided that, if not a part of the
      severance payments outlined in Sections 4(d)(i)(C) and 4(d)(ii)(C) above,
      Executive pays all of the premiums and similar costs and expenses for such
      coverage. Severance payments will be paid and benefit coverage will be
      provided only if Executive delivers to the Company an executed Release
      Agreement in the form of Exhibit A attached hereto and only so long as
      Executive has not breached the provisions of Sections 5 and 6 hereof.
      Severance payments under Sections 4(d)(i)(A) and 4(d)(ii)(A) above shall
      be paid by continuation of regular payroll compensation payments beginning
      on the date of termination of the Employment Period and continuing, in the
      case of Sections 4(d)(i)(A) for two years, and in the case of 4(d)(ii)(A),
      for one year. Severance payments under Sections 4(d)(i)(B) and 4(d)(ii)(B)
      above shall be paid annually, at the date bonuses are paid in the year
      following the date of termination of the Employment Period. For purposes
      of Section 4(d) hereof, "Termination Bonus Amount" shall mean an amount
      equal to the greater of: (A) the annual average of Executive's annual
      bonuses for the preceding three years and (B) the amount of Executive's
      last annual bonus received prior to the termination of the Employment
      Period.

      (e) If, after the third anniversary of the date hereof, a Change of
Control occurs, and within 90 days after such Change of Control, the Employment
Period is terminated by the Company without Cause or Executive resigns with Good
Reason, Executive shall be entitled to a lump sum payment payable 30 days after
such termination or resignation in an amount equal to (i) the Executive's then
applicable Base Salary, plus (ii) the greater of (A) 50% of the annual average
of Executive's annual bonuses for the preceding three years, and (B) 50% of the
amount of Executive's last annual bonus received prior to the date of
termination of the Employment Period. In addition, Executive shall be entitled
to receive his Base Salary through the date of such termination or resignation,
accrued vacation, a prorated portion (based on the number of days which have
elapsed from the beginning of the bonus period until the date of termination of
the Employment Period) of the bonus for the year in which the termination occurs
and expense reimbursement pursuant to Section 3(b) of this Agreement. In
addition, the Company shall use commercially reasonable efforts to allow
Executive to participate in the Company's group health coverage, to the extent
permitted by its insurers and under the same terms and conditions that generally
apply to Company employees; provided that Executive pays

                                       5
<PAGE>

all of the premiums and similar costs and expenses for such coverage. Payments
will not be paid under this Section 4(e) unless Executive delivers to the
Company an executed Release Agreement in the form of Exhibit A attached hereto.
A "Change of Control" means any transaction or series of transactions pursuant
to which any Person(s) or a group of related Persons (other than the investors
purchasing shares in Hillman and/or its Subsidiaries as of the date hereof and
their affiliates) in the aggregate acquire(s) (i) capital stock of Hillman
possessing the voting power (other than voting rights accruing only in the event
of a default, breach or event of noncompliance) to elect a majority of the board
of Hillman (whether by merger, consolidation, reorganization, combination, sale
or transfer of Hillman's capital stock, shareholder or voting agreement, proxy,
power of attorney or otherwise) or (ii) all or substantially all of Hillman's
assets determined on a consolidated basis; provided, that a Change of Control
shall not include a Public Offering. A "Public Offering" means an underwritten
initial public offering and sale, registered under the Securities Act, of shares
of Hillman's common stock.

      (f) The amounts payable pursuant to Sections 4(d) and 4(e) are mutually
exclusive, and under no circumstances shall Executive be entitled to receive
payments under both Sections.

      (g) Executive agrees and acknowledges that Executive shall be responsible
for the payment of any and all taxes arising from continued coverage under the
Company's benefit plans.

      (h) Upon the expiration of the Employment Period, to the extent permitted
under the terms of any applicable life insurance policy, Executive shall be
permitted to purchase from the Company life insurance policies issued in his
name; provided that Executive pays the purchase price of any such life insurance
policies, including any fees and expenses associated with such a transfer.

      (i) For purposes of this Agreement, "Cause" is defined as (i) willful
failure to substantially perform duties hereunder, other than due to Disability;
(ii) willful act which constitutes gross misconduct or fraud and which is
injurious to Hillman or its Subsidiaries; (iii) conviction of, or plea of guilty
or no contest, to a felony or (iv) material breach of confidentiality,
noncompete or non-solicitation agreements (including Sections 5 and 6 hereof)
with the Company which is not cured within ten (10) days after written notice
from the Company.

      (j) For purposes of this Agreement, "Good Reason" means termination of the
Employment Agreement by Executive due to (i) any material diminution in
Executive's position, authority or duties with the Company, (ii) the Company
reassigning Executive to work at a location that is more than seventy-five (75)
miles from his current work location, (iii) any amendment to the Company's
bylaws which results in a material and adverse change to the officer and
director indemnification provisions contained therein or (iv) a material breach
of Sections 3 or 4 of this Agreement by the Company which is not cured within 10
days following written notice from Executive. For purposes of this Agreement,
the "HCI Stockholders Agreement" means the HCI Stockholders Agreement dated as
of the date hereof by and among HCI Acquisition Corp., Code Hennessy & Simmons
IV LP, Ontario Teachers' Pension Plan

                                       6
<PAGE>

Board, HarbourVest Partners, LLC and each of the other purchasers listed on
Schedule A attached thereto.

      (k) For purposes of this Agreement, "Disability" shall mean Executive's
inability to perform the essential duties, responsibilities and functions of his
position with the Company and its Subsidiaries for more than 26 weeks in any
12-month period as a result of any mental or physical disability or incapacity
as defined in the Americans with Disabilities Act or as otherwise determined by
the Board in its reasonable good faith judgment.

      5. Confidential Information.

            (a) Obligation to Maintain Confidentiality. Executive acknowledges
that the information, observations and data (including trade secrets) obtained
by him during the course of his employment with the Company and its Subsidiaries
concerning the business or affairs of Hillman or any its Subsidiaries
("Confidential Information") are the property of Hillman or such Subsidiary.
Therefore, Executive agrees that he shall not disclose to any person or entity
or use for his own purposes any Confidential Information without the prior
written consent of the Board, unless and to the extent that the Confidential
Information becomes generally known to and available for use by the public other
than as a result of Executive's acts or omissions. Executive shall deliver to
the Company at the termination or expiration of the Employment Period, or at any
other time the Company may request in writing, all memoranda, notes, plans,
records, reports, computer files, disks and tapes, printouts and software and
other documents and data (and copies thereof) embodying or relating to
Confidential Information, Third Party Information (as defined in Section 5(b)
below), Work Product (as defined in Section 5(c) below) or the business of
Hillman or any other Subsidiaries which he may then possess or have under his
control.

            (b) Third Party Information. Executive understands that Hillman and
its Subsidiaries and Affiliates will receive from third parties confidential or
proprietary information ("Third Party Information") subject to a duty on
Hillman's and its Subsidiaries' and affiliates' part to maintain the
confidentiality of such information and to use it only for certain limited
purposes. During the Employment Period and thereafter, and without in any way
limiting the provisions of Section 5(a) above, Executive will hold Third Party
Information in the strictest confidence and will not disclose to anyone (other
than personnel of Hillman or its Subsidiaries and affiliates who need to know
such information in connection with their work for Hillman or such Subsidiaries
and affiliates) or use, except in connection with his work for Hillman or its
Subsidiaries and affiliates, Third Party Information unless expressly authorized
by a member of the Board in writing.

            (c) Intellectual Property, Inventions and Patents. Executive
acknowledges that all discoveries, concepts, ideas, inventions, innovations,
improvements, developments, methods, designs, analyses, drawings, reports,
patent applications, copyrightable work and mask work (whether or not including
any confidential information) and all registrations or applications related
thereto, all other proprietary information and all similar or related
information (whether or not patentable) which relate to Hillman's or any of its
Subsidiaries' actual or anticipated business, research and development or
existing or future products or services and which are conceived,

                                       7
<PAGE>

developed or made by Executive (whether alone or jointly with others) while
employed by the Company and its Subsidiaries, whether before or after the date
of this Agreement ("Work Product"), belong to the Company or such Subsidiary.
Executive shall promptly disclose such Work Product to the Board and, at the
Company's expense, perform all actions reasonably requested by the Board
(whether during or after the Employment Period) to establish and confirm such
ownership (including, without limitation, assignments, consents, powers of
attorney and other instruments). Executive acknowledges that all Work Product
shall be deemed to constitute "works made for hire" under the U.S. Copyright Act
of 1976, as amended.

      6. Non-Compete, Non-Solicitation.

            (a) Non-Compete. In further consideration of the compensation to be
paid to Executive hereunder, Executive acknowledges that during the course of
his employment with the Company and its Subsidiaries he has and shall become
familiar with the Company's trade secrets and with other Confidential
Information and that his services have been and shall continue to be of special,
unique and extraordinary value to the Company and its Subsidiaries. Therefore,
Executive agrees that, during the Employment Period and (i) in the event of
termination of the Employment Period by the Company without Cause or resignation
with Good Reason during the Initial Term, two years following the date of such
termination of the Employment Period, or (ii) in the event of termination of the
Employment Period by the Company without Cause or by Executive with Good Reason
after the Initial Term, one year following the date of such termination of the
Employment Period, or (iii) in the event of termination of the Employment Period
by the Company without Cause or by Executive with Good Reason within 90 days of
a Change of Control which occurs after the third anniversary of the date hereof,
one year following the date of such termination of the Employment Period, or
(iv) in the event of termination of the Employment Period by the Company for
Cause or by Executive without Good Reason, one year following the date of such
termination of the Employment Period, or (v) upon the expiration on the
Expiration Date of the Employment Period or termination of the Employment Period
due to Disability, one year following the date of such termination of the
Employment Period, Executive shall not, directly or indirectly own any interest
in, manage, control, participate in, consult with, render services for, be
employed in an executive, managerial or administrative capacity by, or in any
manner engage in any business competing with the businesses of the Company or
its Subsidiaries, as such businesses exist or are in the process of being
implemented during the Employment Period or on the date of the termination or
expiration of the Employment Period, within any geographical area in which the
Company or its Subsidiaries engage or plan to engage in such businesses.
Executive acknowledges (i) that the business of the Company and its Subsidiaries
will be conducted throughout the United States, (ii) notwithstanding the state
of incorporation or principal office of the Company or any of its Subsidiaries,
or any of its executives or employees (including the Executive), it is expected
that the Company and its Subsidiaries will have business activities and have
valuable business relationships within its industry throughout the United States
and (iii) as part of his responsibilities, Executive will be traveling
throughout the United States in furtherance of the business and relationships of
the Company and its Subsidiaries. Nothing herein shall prohibit Executive from
being a passive owner of not more than 2% of the outstanding stock of any class
of a corporation which is publicly traded, so long as Executive has no active
participation in the business of such corporation.

                                       8
<PAGE>

      (b) Non-Solicitation. During the Employment Period and for two years
following the date of termination or expiration of the Employment Period,
Executive shall not directly or indirectly through another person or entity (i)
induce or attempt to induce any employee of the Company or any Subsidiary to
leave the employ of the Company or such Subsidiary, or in any way interfere with
the relationship between the Company or any Subsidiary and any employee thereof,
(ii) hire any person who was an employee of the Company or any Subsidiary at any
time during the Employment Period or (iii) induce or attempt to induce any
customer, supplier, licensee, licensor, franchisee or other business relation of
the Company or any Subsidiary to cease doing business (or materially reduce the
amount of business done) with the Company or such Subsidiary, or in any way
interfere with the relationship between any such customer, supplier, licensee or
business relation and the Company or any Subsidiary (including, without
limitation, making any negative or disparaging statements or communications
regarding the Company or its Subsidiaries).

      (c) Scope of Restrictions. If, at the time of enforcement of this Section
6, a court shall hold that the duration, scope or area restrictions stated
herein are unreasonable under circumstances then existing, the parties agree
that the maximum duration, scope or area reasonable under such circumstances
shall be substituted for the stated duration, scope or area and that the court
shall be allowed to revise the restrictions contained herein to cover the
maximum period, scope and area permitted by law.

      (d) Equitable Relief. In the event of the breach or a threatened breach by
Executive of any of the provisions of this Section 6, the Company would suffer
irreparable harm, and in addition and supplementary to other rights and remedies
existing in its favor, the Company shall be entitled to specific performance
and/or injunctive or other equitable relief from a court of competent
jurisdiction in order to enforce or prevent any violations of the provisions
hereof (without posting a bond or other security). In addition, in the event of
a breach or violation by Executive of this Section 6, the time periods
referenced in this Section 6 shall be automatically extended by the amount of
time between the initial occurrence of the breach or violation and when such
breach or violation has been duly cured.

      7. Executive's Representations. Executive hereby represents and warrants
to the Company that (i) the execution, delivery and performance of this
Agreement by Executive do not and shall not conflict with, breach, violate or
cause a default under any contract, agreement, instrument, order, judgment or
decree to which Executive is a party or by which he is bound, (ii) Executive is
not a party to or bound by any employment agreement, noncompete agreement or
confidentiality agreement with any other person or entity and (iii) upon the
execution and delivery of this Agreement by the Company, this Agreement shall be
the valid and binding obligation of Executive, enforceable in accordance with
its terms. Executive hereby acknowledges that the provisions of Section 6 above
are in consideration of (i) employment (as employee or consultant) with the
Company, (ii) the issuance of certain securities of Hillman under the Executive
Securities Agreement between Executive and Hillman and (iii) additional good and
valuable consideration as set forth in this Agreement. In addition, Executive
agrees and acknowledges that the restrictions contained in Section 6 above are
reasonable, do not preclude him from earning a livelihood, that he has reviewed
his rights and obligations under this Agreement with his legal counsel and that
he fully understands the terms and conditions

                                       9
<PAGE>

contained herein. In addition, Executive agrees and acknowledges that the
potential harm to the Company of the non-enforcement of Section 6 outweighs any
potential harm to Executive of its enforcement by injunction or otherwise.
Executive acknowledges that he has carefully read this Agreement and has given
careful consideration to the restraints imposed upon Executive by this
Agreement, and is in full accord as to their necessity for the reasonable and
proper protection of confidential and proprietary information of the Company now
existing or to be developed in the future. Executive expressly acknowledges and
agrees that each and every restraint imposed by this Agreement is reasonable
with respect to subject matter, time period and geographical area.

      8. Survival. Sections 4(b) through 21, inclusive, shall survive and
continue in full force in accordance with their terms notwithstanding the
expiration or termination of the Employment Period.

      9. Notices. Any notice provided for in this Agreement shall be in writing
and shall be either personally delivered, sent by reputable overnight courier
service or mailed by first class mail, return receipt requested, to the
recipient at the address below indicated:

                  Notices to Executive:

                           Richard P. Hillman
                           10590 Hamilton Avenue
                           Cincinnati, OH  45231
                           Telecopy: (513) 851-5531

                  Notices to the Company:

                           The Hillman Group, Inc.
                           10590 Hamilton Avenue
                           Cincinnati, OH 45231
                           Attn: Chief Executive Officer

                           and

                           Code Hennessy & Simmons LLC
                           10 South Wacker Drive, Suite 3175
                           Chicago, IL  60606
                           Telecopy:  (312) 876-1840
                           Attn: Peter M. Gotsch

                                       10
<PAGE>

                  With copies, which shall not constitute notice, to:

                           Kirkland & Ellis LLP
                           200 East Randolph Drive
                           Chicago, Illinois 60601
                           Telecopy: (312) 861-2200
                           Attn: Stephen L. Ritchie, P.C.

or such other address or to the attention of such other person as the recipient
party shall have specified by prior written notice to the sending party. Any
notice under this Agreement shall be deemed to have been given when so
delivered, sent or mailed.

      10. Severability. Whenever possible, each provision of this Agreement
shall be interpreted in such manner as to be effective and valid under
applicable law, but if any provision of this Agreement is held to be invalid,
illegal or unenforceable in any respect under any applicable law or rule in any
jurisdiction, such invalidity, illegality or unenforceability shall not affect
any other provision of this Agreement or any action in any other jurisdiction,
but this Agreement shall be reformed, construed and enforced in such
jurisdiction as if such invalid, illegal or unenforceable provision had never
been contained herein.

      11. Complete Agreement. This Agreement and those documents expressly
referred to herein and other documents of even date herewith embody the complete
agreement and understanding among the parties and supersede and preempt any
prior understandings, agreements or representations by or among the parties,
written or oral, which may have related to the subject matter hereof in any way
(including, without limitation, the Management Term Sheet dated February 14,
2004, which shall be terminated and of no further force or effect as of the date
of the execution and delivery of this Agreement, but excluding any breaches
thereof by either party prior to the date hereof).

      12. No Strict Construction. The language used in this Agreement shall be
deemed to be the language chosen by the parties hereto to express their mutual
intent, and no rule of strict construction shall be applied against any party.

      13. Counterparts. This Agreement may be executed in separate counterparts,
each of which is deemed to be an original and all of which taken together
constitute one and the same agreement.

      14. Successors and Assigns. This Agreement is intended to bind and inure
to the benefit of and be enforceable by Executive, the Company and their
respective heirs, successors and assigns, except that Executive may not assign
his rights or delegate his duties or obligations hereunder without the prior
written consent of the Company.

      15. Choice of Law. All issues and questions concerning the construction,
validity, enforcement and interpretation of this Agreement and the exhibits and
schedules hereto shall be governed by, and construed in accordance with, the
laws of the State of Delaware, without giving

                                       11
<PAGE>

effect to any choice of law or conflict of law rules or provisions (whether of
the State of Delaware or any other jurisdiction) that would cause the
application of the laws of any jurisdiction other than the State of Delaware.

      16. Amendment and Waiver. The provisions of this Agreement may be amended
or waived only with the prior written consent of the Company (as approved by the
Board) and Executive, and no course of conduct or course of dealing or failure
or delay by any party hereto in enforcing or exercising any of the provisions of
this Agreement (including, without limitation, the Company's right to terminate
the Employment Period for Cause) shall affect the validity, binding effect or
enforceability of this Agreement or be deemed to be an implied waiver of any
provision of this Agreement.

      17. Insurance. The Company may, at its discretion, apply for and procure
in its own name and for its own benefit life and/or disability insurance on
Executive in any amount or amounts considered advisable. Executive agrees to
cooperate in any medical or other examination, supply any information and
execute and deliver any applications or other instruments in writing as may be
reasonably necessary to obtain and constitute such insurance. Executive hereby
represents that he has no reason to believe that his life is not insurable at
rates now prevailing for healthy men of his age.

      18. Indemnification and Reimbursement of Payments on Behalf of Executive.
The Company and its Subsidiaries shall be entitled to deduct or withhold from
any amounts owing from the Company or any of its Subsidiaries to Executive any
federal, state, local or foreign withholding taxes, excise tax, or employment
taxes ("Taxes") imposed with respect to Executive's compensation or other
payments from the Company or any of its Subsidiaries or Executive's ownership
interest in the Company (including, without limitation, wages, bonuses,
dividends, the receipt or exercise of equity options and/or the receipt or
vesting of restricted equity). In the event the Company or any of its
Subsidiaries does not make such deductions or withholdings, Executive shall
indemnify the Company and its Subsidiaries for any amounts paid with respect to
any such Taxes, together with any interest, penalties and related expenses
thereto.

      19. MUTUAL WAIVER OF JURY TRIAL. BECAUSE DISPUTES ARISING IN CONNECTION
WITH COMPLEX TRANSACTIONS ARE MOST QUICKLY AND ECONOMICALLY RESOLVED BY AN
EXPERIENCED AND EXPERT PERSON AND THE PARTIES WISH APPLICABLE STATE AND FEDERAL
LAWS TO APPLY (RATHER THAN ARBITRATION RULES), THE PARTIES DESIRE THAT THEIR
DISPUTES BE RESOLVED BY A JUDGE APPLYING SUCH APPLICABLE LAWS. THEREFORE, TO
ACHIEVE THE BEST COMBINATION OF THE BENEFITS OF THE JUDICIAL SYSTEM AND OF
ARBITRATION, EACH PARTY TO THIS AGREEMENT HEREBY WAIVES ALL RIGHTS TO TRIAL BY
JURY IN ANY ACTION, SUIT, OR PROCEEDING BROUGHT TO RESOLVE ANY DISPUTE BETWEEN
OR AMONG ANY OF THE PARTIES HERETO, WHETHER ARISING IN CONTRACT, TORT, OR
OTHERWISE, ARISING OUT OF, CONNECTED WITH, RELATED OR INCIDENTAL TO THIS
AGREEMENT, THE TRANSACTIONS CONTEMPLATED HEREBY AND/OR THE RELATIONSHIP
ESTABLISHED AMONG THE PARTIES HEREUNDER.

                                       12
<PAGE>

      20. Corporate Opportunity. During the Employment Period, Executive shall
submit to the Board all business, commercial and investment opportunities or
offers presented to Executive or of which Executive becomes aware which relate
to the areas of business engaged in by the Company at any time during the
Employment Period ("Corporate Opportunities"). Unless approved by the Board,
Executive shall not accept or pursue, directly or indirectly, any Corporate
Opportunities on Executive's own behalf.

      21. Executive's Cooperation. During the Employment Period and thereafter,
Executive shall cooperate with the Company and its Subsidiaries in any internal
investigation, any administrative, regulatory or judicial proceeding or any
dispute with a third party as reasonably requested by the Company (including,
without limitation, Executive being available to the Company upon reasonable
notice for interviews and factual investigations, appearing at the Company's
request to give testimony without requiring service of a subpoena or other legal
process, volunteering to the Company all pertinent information and turning over
to the Company all relevant documents which are or may come into Executive's
possession, all at times and on schedules that are reasonably consistent with
Executive's other permitted activities and commitments). In the event the
Company requires Executive's cooperation in accordance with this paragraph, the
Company shall reimburse Executive solely for reasonable travel expenses
(including lodging and meals) upon submission of receipts.

      22. Directors' and Officers' Liability Insurance. Executive shall be a
beneficiary of any directors' and officers' liability insurance policy
maintained by the Company so long as Executive remains an officer or director of
the Company.

                                    * * * * *

                                       13
<PAGE>

      IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of
the date first written above.

                                               THE HILLMAN GROUP, INC.

                                               By: /s/ MAX W. HILLMAN
                                                   -----------------------------

                                               Its:
                                                  ------------------------------

                                               /s/ RICHARD P. HILLMAN
                                               ---------------------------------
                                               Richard P. Hillman

<PAGE>

                                    EXHIBIT A

                                 GENERAL RELEASE

      I, Richard P. Hillman, in consideration of and subject to the performance
by The Hillman Companies, Inc., a Delaware corporation (together with its
subsidiaries, the "Company"), of its obligations under the Employment Agreement,
dated as of March 31, 2004, (the "Agreement"), do hereby release and forever
discharge as of the date hereof the Company and its affiliates and all present
and former directors, officers, agents, representatives, employees, successors
and assigns of the Company and its affiliates and the Company's direct or
indirect owners (collectively, the "Released Parties") to the extent provided
below.

1.    I understand that any payments or benefits paid or granted to me under
      Sections 4(d) and 4(e) of the Agreement represent, in part, consideration
      for signing this General Release and are not salary, wages or benefits to
      which I was already entitled. I understand and agree that I will not
      receive the payments and benefits specified in paragraph Sections 4(d) and
      4(e) of the Agreement unless I execute this General Release and do not
      revoke this General Release within the time period permitted hereafter or
      breach this General Release. I also acknowledge and represent that I have
      received all payments and benefits that I am entitled to receive (as of
      the date hereof) by virtue of any employment by the Company.

2.    Except as provided in paragraph 4 below and except for the provisions of
      my Agreement which expressly survive the termination of my employment with
      the Company, I knowingly and voluntarily (for myself, my heirs, executors,
      administrators and assigns) release and forever discharge the Company and
      the other Released Parties from any and all claims, suits, controversies,
      actions, causes of action, cross-claims, counter-claims, demands, debts,
      compensatory damages, liquidated damages, punitive or exemplary damages,
      other damages, claims for costs and attorneys' fees, or liabilities of any
      nature whatsoever in law and in equity, both past and present (through the
      date this General Release becomes effective and enforceable) and whether
      known or unknown, suspected, or claimed against the Company or any of the
      Released Parties which I, my spouse, or any of my heirs, executors,
      administrators or assigns, may have, which arise out of or are connected
      with my employment with, or my separation or termination from, the Company
      (including, but not limited to, any allegation, claim or violation,
      arising under: Title VII of the Civil Rights Act of 1964, as amended; the
      Civil Rights Act of 1991; the Age Discrimination in Employment Act of
      1967, as amended (including the Older Workers Benefit Protection Act); the
      Equal Pay Act of 1963, as amended; the Americans with Disabilities Act of
      1990; the Family and Medical Leave Act of 1993; the Worker Adjustment
      Retraining and Notification Act; the Employee Retirement Income Security
      Act of 1974; any applicable Executive Order Programs; the Fair Labor
      Standards Act; or their state or local counterparts; or under any other
      federal, state or local civil or human rights law, or under any other
      local, state, or federal law, regulation or ordinance; or under any public
      policy, contract or tort, or under common law; or arising under any
      policies, practices or procedures of the Company; or any claim for
      wrongful discharge, breach of contract, infliction of emotional distress,
      defamation; or any claim for costs, fees, or other

<PAGE>

      expenses, including attorneys' fees incurred in these matters) (all of the
      foregoing collectively referred to herein as the "Claims").

3.    I represent that I have made no assignment or transfer of any right,
      claim, demand, cause of action, or other matter covered by paragraph 2
      above.

4.    I agree that this General Release does not waive or release any rights or
      claims that I may have under the Age Discrimination in Employment Act of
      1967 which arise after the date I execute this General Release. I
      acknowledge and agree that my separation from employment with the Company
      in compliance with the terms of the Agreement shall not serve as the basis
      for any claim or action (including, without limitation, any claim under
      the Age Discrimination in Employment Act of 1967).

5.    In signing this General Release, I acknowledge and intend that it shall be
      effective as a bar to each and every one of the Claims hereinabove
      mentioned or implied. I expressly consent that this General Release shall
      be given full force and effect according to each and all of its express
      terms and provisions, including those relating to unknown and unsuspected
      Claims (notwithstanding any state statute that expressly limits the
      effectiveness of a general release of unknown, unsuspected and
      unanticipated Claims), if any, as well as those relating to any other
      Claims hereinabove mentioned or implied. I acknowledge and agree that this
      waiver is an essential and material term of this General Release and that
      without such waiver the Company would not have agreed to the terms of the
      Agreement. I further agree that in the event I should bring a Claim
      seeking damages against the Company, or in the event I should seek to
      recover against the Company in any Claim brought by a governmental agency
      on my behalf, this General Release shall serve as a complete defense to
      such Claims. I further agree that I am not aware of any pending charge or
      complaint of the type described in paragraph 2 as of the execution of this
      General Release.

6.    I agree that neither this General Release, nor the furnishing of the
      consideration for this General Release, shall be deemed or construed at
      any time to be an admission by the Company, any Released Party or myself
      of any improper or unlawful conduct.

7.    I agree that I will forfeit all amounts payable by the Company pursuant to
      the Agreement if I challenge the validity of this General Release. I also
      agree that if I violate this General Release by suing the Company or the
      other Released Parties, I will pay all costs and expenses of defending
      against the suit incurred by the Released Parties, including reasonable
      attorneys' fees, and return all payments received by me pursuant to the
      Agreement.

8.    I agree that this General Release is confidential and agree not to
      disclose any information regarding the terms of this General Release,
      except to my immediate family and any tax, legal or other counsel I have
      consulted regarding the meaning or effect hereof or as required by law,
      and I will instruct each of the foregoing not to disclose the same to
      anyone. Notwithstanding anything herein to the contrary, each of the
      parties (and each affiliate and person acting on behalf of any such party)
      agree that each party (and each

                                      A-2
<PAGE>

      employee, representative, and other agent of such party) may disclose to
      any and all persons, without limitation of any kind, the tax treatment and
      tax structure of this transaction contemplated in the Agreement and all
      materials of any kind (including opinions or other tax analyses) that are
      provided to such party or such person relating to such tax treatment and
      tax structure, except to the extent necessary to comply with any
      applicable federal or state securities laws. This authorization is not
      intended to permit disclosure of any other information including (without
      limitation) (i) any portion of any materials to the extent not related to
      the tax treatment or tax structure of this transaction, (ii) the
      identities of participants or potential participants in the Agreement,
      (iii) any financial information (except to the extent such information is
      related to the tax treatment or tax structure of this transaction), or
      (iv) any other term or detail not relevant to the tax treatment or the tax
      structure of this transaction.

9.    Any non-disclosure provision in this General Release does not prohibit or
      restrict me (or my attorney) from responding to any inquiry about this
      General Release or its underlying facts and circumstances by the
      Securities and Exchange Commission (SEC), the National Association of
      Securities Dealers, Inc. (NASD), any other self-regulatory organization or
      governmental entity.

10.   I agree to reasonably cooperate with the Company in any internal
      investigation, any administrative, regulatory, or judicial proceeding or
      any dispute with a third party. I understand and agree that my cooperation
      may include, but not be limited to, making myself available to the Company
      upon reasonable notice for interviews and factual investigations;
      appearing at the Company's request to give testimony without requiring
      service of a subpoena or other legal process; volunteering to the Company
      pertinent information; and turning over to the Company all relevant
      documents which are or may come into my possession all at times and on
      schedules that are reasonably consistent with my other permitted
      activities and commitments. I understand that in the event the Company
      asks for my cooperation in accordance with this provision, the Company
      will reimburse me solely for reasonable travel expenses, (including
      lodging and meals), upon my submission of receipts.

11.   I agree not to disparage the Company, its past and present investors,
      officers, directors or employees or its affiliates and to keep all
      confidential and proprietary information about the past or present
      business affairs of the Company and its affiliates confidential unless a
      prior written release from the Company is obtained. I further agree that
      as of the date hereof, I have returned to the Company any and all
      property, tangible or intangible, relating to its business, which I
      possessed or had control over at any time (including, but not limited to,
      company-provided credit cards, building or office access cards, keys,
      computer equipment, manuals, files, documents, records, software, customer
      data base and other data) and that I shall not retain any copies,
      compilations, extracts, excerpts, summaries or other notes of any such
      manuals, files, documents, records, software, customer data base or other
      data.

                                      A-3
<PAGE>

12.   Notwithstanding anything in this General Release to the contrary, this
      General Release shall not relinquish, diminish, or in any way affect any
      rights or claims arising out of any breach by the Company or by any
      Released Party of the Agreement after the date hereof.

13.   Whenever possible, each provision of this General Release shall be
      interpreted in, such manner as to be effective and valid under applicable
      law, but if any provision of this General Release is held to be invalid,
      illegal or unenforceable in any respect under any applicable law or rule
      in any jurisdiction, such invalidity, illegality or unenforceability shall
      not affect any other provision or any other jurisdiction, but this General
      Release shall be reformed, construed and enforced in such jurisdiction as
      if such invalid, illegal or unenforceable provision had never been
      contained herein.

BY SIGNING THIS GENERAL RELEASE, I REPRESENT AND AGREE THAT:

(a)   I HAVE READ IT CAREFULLY;

(b)   I UNDERSTAND ALL OF ITS TERMS AND KNOW THAT I AM GIVING UP IMPORTANT
      RIGHTS, INCLUDING BUT NOT LIMITED TO, RIGHTS UNDER THE AGE DISCRIMINATION
      IN EMPLOYMENT ACT OF 1967, AS AMENDED, TITLE VII OF THE CIVIL RIGHTS ACT
      OF 1964, AS AMENDED; THE EQUAL PAY ACT OF 1963, THE AMERICANS WITH
      DISABILITIES ACT OF 1990; AND THE EMPLOYEE RETIREMENT INCOME SECURITY ACT
      OF 1974, AS AMENDED;

(c)   I VOLUNTARILY CONSENT TO EVERYTHING IN IT;

(d)   I HAVE BEEN ADVISED TO CONSULT WITH AN ATTORNEY BEFORE EXECUTING IT AND I
      HAVE DONE SO OR, AFTER CAREFUL READING AND CONSIDERATION I HAVE CHOSEN NOT
      TO DO SO OF MY OWN VOLITION;

(e)   I HAVE HAD AT LEAST 21 DAYS FROM THE DATE OF MY RECEIPT OF THIS RELEASE
      SUBSTANTIALLY IN ITS FINAL FORM ON _______________ __, _____ TO CONSIDER
      IT AND THE CHANGES MADE SINCE THE _______________ __, _____ VERSION OF
      THIS RELEASE ARE NOT MATERIAL AND WILL NOT RESTART THE REQUIRED 21-DAY
      PERIOD;

(f)   THE CHANGES TO THE AGREEMENT SINCE _______________ ___, _____ EITHER ARE
      NOT MATERIAL OR WERE MADE AT MY REQUEST.

(g)   I UNDERSTAND THAT I HAVE SEVEN DAYS AFTER THE EXECUTION OF THIS RELEASE TO
      REVOKE IT AND THAT THIS RELEASE SHALL NOT BECOME EFFECTIVE OR ENFORCEABLE
      UNTIL THE REVOCATION PERIOD HAS EXPIRED;

(h)   I HAVE SIGNED THIS GENERAL RELEASE KNOWINGLY AND VOLUNTARILY AND WITH THE
      ADVICE OF ANY COUNSEL RETAINED TO ADVISE ME WITH RESPECT TO IT; AND

                                      A-4
<PAGE>

(i)   I AGREE THAT THE PROVISIONS OF THIS GENERAL RELEASE MAY NOT BE AMENDED,
      WAIVED, CHANGED OR MODIFIED EXCEPT BY AN INSTRUMENT IN WRITING SIGNED BY
      AN AUTHORIZED REPRESENTATIVE OF THE COMPANY AND BY ME.

DATE:                                          /s/ RICHARD P. HILLMAN
       --------------                          --------------------------------
                                               Richard P. Hillman

                                      A-5

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00066-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00066-of-00352.parquet"}]]