Document:

<PAGE>   1
                                  APG AGREEMENT

                                      AMONG

                       AUTOMOTIVE PERFORMANCE GROUP, INC.,

                                PBT BRANDS, INC.,

                                       AND

                          THE APG PARTIES NAMED HEREIN
<PAGE>   2
                                TABLE OF CONTENTS

                                    ARTICLE I

                                   DEFINITIONS

<TABLE>
<S>                                                                           <C>
SECTION 1.1  Definitions...................................................    1
</TABLE>

                                   ARTICLE II

                           REPRESENTATIONS OF APG AND
                                 THE APG PARTIES
<TABLE>
<S>                                                                           <C>
SECTION 2.1  Due Incorporation.............................................    3
SECTION 2.2  Due Authorization.............................................    3
SECTION 2.3  Consents and Approvals; Authority Relative to This Agreement..    4
SECTION 2.4  Brokers; Equity Participants..................................    4
SECTION 2.5  Capitalization; Subsidiaries..................................    4
SECTION 2.6  Accuracy of Information.......................................    5
SECTION 2.7  Other Matters.................................................    5
</TABLE>

                                   ARTICLE III

                            COVENANTS AND AGREEMENTS

<TABLE>
<S>                                                                           <C>
SECTION 3.1  Formation of Special Purpose Subsidiary.......................    6
SECTION 3.2  Subsidiary Contribution of All Existing Assets and Liabilities    7
SECTION 3.3  Redemption and Conversion of APG Preferred Stock..............    7
SECTION 3.4  Exchange of Bridge Debt and Other Debt; Issuance of Preferred
             Stock.........................................................    8
SECTION 3.5  Employment and Stock Matters..................................    8
SECTION 3.6  APG Stock Option Grants.......................................    9
SECTION 3.7  Contingent Stock Grants and Amendments........................    9
SECTION 3.8  Opinion of Counsel to APG.....................................   10
</TABLE>

                                   ARTICLE IV

                        BENEFITS, RELEASE AND INDEMNITIES

<TABLE>
<S>                                                                           <C>
SECTION 4.1  APG Reimbursements, Payments and Investment...................   10
SECTION 4.2  Release.......................................................   10
SECTION 4.3  Indemnification by APG........................................   11
</TABLE>

                                       -i-
<PAGE>   3
                                    ARTICLE V

                                  MISCELLANEOUS
<TABLE>
<S>                                                                           <C>
SECTION 5.1  Expenses......................................................   12
SECTION 5.2  Amendment.....................................................   12
SECTION 5.3  Notices.......................................................   12
SECTION 5.4  Waivers.......................................................   13
SECTION 5.5  Counterparts..................................................   13
SECTION 5.6  Interpretation................................................   13
SECTION 5.7  APPLICABLE LAW................................................   13
SECTION 5.8  Binding Agreement.............................................   14
SECTION 5.9  Third Party Beneficiaries.....................................   14
SECTION 5.10 Entire Understanding..........................................   14
SECTION 5.11 JURISDICTION OF DISPUTES; WAIVER OF JURY TRIAL................   14
SECTION 5.12 Severability..................................................   15
SECTION 5.13 Construction..................................................   15
</TABLE>

<TABLE>
<CAPTION>
EXHIBITS
<S>               <C>
EXHIBIT A -       APG Subscription Agreement
EXHIBIT B -       APG Stockholders Agreement
EXHIBIT C -       Form of Option Agreement
EXHIBIT D -       Certified APG Board Resolutions
EXHIBIT E -       Contingent Stock Arrangements
EXHIBIT F -       Terms of Series B Preferred Stock
</TABLE>
<TABLE>
<CAPTION>
Schedules
<S>               <C>
Schedule I   -    APG Parties
Schedule 2.3 -    Consents, Filings
Schedule 2.4 -    Brokers
Schedule 2.5 -    Capitalization
Schedule 2.6 -    SEC Filings
Schedule 3.3 -    Preferred Stock
Schedule 3.4 -    Bridge Debt
Schedule 3.5 -    Shared Employees
Schedule 3.6 -    Stock Option Grants
Schedule 4.1 -    Reimbursed Expense Invoices
Schedule 6.4 -    APG Parties Notice Information
</TABLE>

                                      -ii-
<PAGE>   4
                                  APG AGREEMENT

         THIS APG AGREEMENT (this "Agreement"), is made as of August 2, 1999, by
and among Automotive Performance Group, Inc., a Delaware corporation ("APG"),
the shareholders of APG listed on Schedule I (the "APG Parties") and PBT Brands,
Inc., a Delaware corporation, together with its subsidiaries ("PBT").

                                 R E C I T A L S

         WHEREAS, APG and PBT are party to that certain Letter of Intent, dated
July 13, 1999, (the "PBT Letter of Intent") relating to the acquisition by PBT
of the net assets and business of the Automotive Aftermarket Division of Loctite
("Permatex");

         WHEREAS, APG and Loctite are party to that certain Letter of Intent,
dated February 1999 (the "APG Letter of Intent") relating to the acquisition by
APG of Permatex;

         WHEREAS, PBT's wholly-owned subsidiary Permatex Acquisition, Inc.
("Permatex Acquisition") has entered into that certain Asset Purchase Agreement,
dated the date hereof, with Loctite Corporation and Manco, Inc. (the "Permatex
Asset Purchase Agreement");

         WHEREAS, APG has made certain loans and deposits in respect of certain
proposed transactions which in consideration of the agreements set forth herein,
PBT shall reimburse as set forth herein;

         WHEREAS, as a condition to the closing of the transactions contemplated
by the PBT Letter of Intent and the Permatex Asset Purchase Agreement, PBT
requires that each of APG and the APG Parties provide a release in favor of PBT
and its affiliates for certain liabilities as set forth herein, that APG provide
an indemnity in favor of PBT as set forth herein, and agree to perform the
covenants set forth herein;

         NOW, THEREFORE, in consideration of the agreements set forth herein,
including the release contained herein, the parties agree as follows:

                                    ARTICLE I

                                   DEFINITIONS

         SECTION 1.1 Definitions. The following terms shall have the following
meanings for the purposes of this Agreement:

         "AC Tech" means Advanced Chemistry & Technology, Inc., a Delaware
corporation.
<PAGE>   5
         "AC Tech Letter of Intent" means that certain letter dated February 8,
1999 between Ampersand and APG relating to the sale of the capital Stock of AC
Tech.

         "AC Tech Stock Purchase Agreement" means the Stock Purchase Agreement,
dated as of the date hereof, among Permatex Acquisition, Advanced Chemistry &
Technology, Inc. ("AC Tech") and the stockholders named therein.

         "Agreement" has the meaning set forth in the preamble.

         "Ampersand" means Ampersand Specialty Materials and Chemicals III
Limited Partnership and Ampersand Specialty Materials and Chemicals III
Companion Fund Limited Partnership, their successors and assigns.

         "APG" has the meaning set forth in the preamble.

         "APG Newco" has the meaning set forth in Section 3.2.

         "APG Reimbursement" has the meaning set forth in Section 4.1(a).

         "APG Special Purpose Sub" has the meaning set forth in Section 3.1.

         "APG Subscription Agreement" has the meaning set forth in Section 3.1.

         "APG 1998 Stock Option Plan" means the 1998 Stock Option Plan of APG as
duly adopted by the board of directors and stockholders of APG as in effect on
the date hereof, a copy of which has been furnished to PBT.

         "Bridge Notes" has the meaning set forth in Section 3.4.

         "Closing" means the closing of PBT's acquisition of the Automotive
Aftermarket Division of Loctite Corporation and of Advanced Chemistry and
Technology, Inc. and related financing and transactions.

         "Common Stock" means the Common Stock, par value $0.0001 per share, of
APG.

         "Downstream Assets" has the meaning set forth in Section 4.2.

         "Loctite" means Loctite Corporation, a Delaware corporation.

         "Loss" or "Losses" shall mean any and all damages, liabilities,
judgments, penalties, fines, losses, taxes and reasonable costs and expenses,
including but not limited to, attorneys' fees and accounting fees, consulting
fees and related disbursements.

         "Other Debt" has the meaning set forth in Section 3.4(c).

                                       2
<PAGE>   6
         "PBT" has the meaning set forth in the preamble.

         "PBT Investment" has the meaning set forth in Section 2.7.

         "PBT Letter of Intent" has the meaning set forth in the recitals.

         "PBT Stockholders Agreement" has the meaning set forth in Section 4.1.

         "Permatex" has the meaning set forth in the recitals.

         "Permatex Acquisition" means PBT's acquisition of the Automotive
Aftermarket Division of Loctite Corporation.

         "Permatex Asset Purchase Agreement" has the meaning set forth in the
recitals.

         "Related Agreements" means, with respect to any party hereto, the
agreements which are exhibits hereto, together with all other agreements
contemplated hereby and thereby.

         "Preferred Stock" means the Preferred Stock, par value of $0.0001 per
share, of APG.

         "Series B Preferred Stock" means the Series B Convertible Redeemable
Preferred Stock, par value $0.0001 per share, of APG having the terms set forth
on Exhibit F hereto.

         "Subsidiary Contribution" has the meaning set forth in Section 4.2.

                                   ARTICLE II

                           REPRESENTATIONS OF APG AND
                                 THE APG PARTIES

         SECTION 2.1 Due Incorporation. APG is a corporation duly organized,
validly existing and in good standing under the laws of the State of Delaware
with all requisite power and authority to own and operate its assets and
properties as they are now being owned and operated.

         SECTION 2.2 Due Authorization. Each of APG and the APG Parties has full
power and authority to enter into this Agreement and its Related Agreements and
to consummate the transactions contemplated hereby and thereby. The execution,
delivery and performance by each APG and the APG Parties of this Agreement and
its Related Agreements have been duly and validly approved by the board of
directors of APG, and equivalent body of the APG Parties, and no other corporate
or other actions or proceedings on the part of APG and the APG Parties are
necessary to authorize this Agreement, its Related Agreements and the
transactions contemplated hereby and thereby. Each of APG and the APG Parties
has duly and validly executed and delivered this Agreement and has duly and
validly executed and delivered its Related

                                       3
<PAGE>   7
Agreements. This Agreement constitutes the legal, valid and binding obligation
of each of APG and the APG Parties and such party's Related Agreements, upon
execution and delivery by such party, will constitute legal, valid and binding
obligations of each of APG and the APG Parties, in each case, enforceable in
accordance with their respective terms, except as such enforceability may be
limited by applicable bankruptcy, insolvency, moratorium, reorganization or
similar laws in effect which affect the enforcement of creditors' rights
generally and by equitable principles.

         SECTION 2.3 Consents and Approvals; Authority Relative to This
Agreement. The execution, delivery and performance by each of APG and the APG
Parties of this Agreement and its Related Agreements will not (i) violate any
law, regulation or order of any governmental authority applicable to such party;
(ii) except as set forth on Schedule 2.3 all of which have been made or will be
timely made, require any filing or registration by such party with, or consent
or approval with respect to such party of, any governmental authority; (iii)
violate or conflict with or result in a breach or default under any contract to
which such party is a party or by which such party or any of its assets or
properties are bound; or (iv) violate or conflict with their charter, by-laws or
other organizational documents.

         SECTION 2.4 Brokers; Equity Participants.

         (a) Neither APG nor any APG Party has used any broker or finder in
connection with the transactions contemplated by the PBT Letter of Intent, the
Permatex Asset Purchase Agreement, the AC Tech Stock Purchase Agreement, this
Agreement or the Related Agreements, nor entered into negotiations or agreements
with any equity participant other than those listed on Schedule 2.4 hereto, and
APG represents, warrants and confirms that neither PBT, nor any Released Party
(as defined in Section 4.2) has or shall have any liability or otherwise suffer
or incur any Loss as a result of or in connection with any brokerage, finder's
fee, other commission or other liability or payment of any Person retained by
APG or an APG Party in connection with any of the transactions contemplated by
the PBT Letter of Intent, this Agreement, the Permatex Acquisition, the AC Tech
Acquisition or the Related Agreements. Each of the brokers, finders and
financiers listed on Schedule 2.4 has executed and delivered a Pay-Off and
Release letter in form and substance satisfactory to PBT, unless and to the
extent waived by PBT. With regard to such brokers, finders and financiers, PBT
has either paid or will pay at the direction of APG, on behalf of APG, and/or
reimbursed APG for the amounts (collectively, the "Pay-Off Amount"), set forth
on Schedule 2.4, but in each such case only to the extent that Pay-Off and
Release letters in form and substance satisfactory to PBT have been executed and
delivered by such parties. The Pay-Off Amount shall not exceed $4.8 million in
the aggregate.

         SECTION 2.5 Capitalization; Subsidiaries. Each beneficial holder of
Preferred Stock as of immediately prior to the date hereof is listed on Schedule
2.5. Schedule 2.5 lists entire authorized capital stock of the Company as of the
date immediately prior to the date hereof and, on a pro forma basis giving
effect to the conversion of Bridge Debt and Preferred Stock contemplated hereby.
There are no outstanding or authorized options, warrants, purchase rights,
subscription rights, conversion rights, exchange rights or other contracts or
commitments that would require APG to issue, sell, or otherwise cause to become
outstanding any of its capital

                                       4
<PAGE>   8
stock other than set forth on Schedule 2.5, there are no outstanding or
authorized stock appreciation, phantom stock, profit participation, or similar
rights with respect to APG, there are no voting trusts, proxies, or other
agreements or understandings with respect to the voting of capital stock of APG,
except in each such case as disclosed on Schedule 2.5. The beneficial ownership
percentage of all 5% or greater stockholders, officers, directors, including
Dean Willard and all recipients of stock options and restricted stock as
described in Sections 4.6 and 4.7 as of the date hereof, after giving effect to
the Transactions and the conversion of all outstanding shares of Preferred Stock
and Series B Preferred Stock are set forth on Schedule 2.5.

         SECTION 2.6 Accuracy of Information. All forms, reports, statements
(including without limitation any financial statements and schedules) and
documents filed with the SEC by APG (the "SEC Documents"), have complied in all
material respects with all applicable requirements of the Securities Act and the
Exchange Act, as applicable, and the laws, regulations and rules relating
thereto. As of their respective dates, the SEC Documents complied in all
material respects with the requirements of the Securities Act or the Exchange
Act, as the case may be, and none of the SEC Documents, at the time of their
filing, contained any untrue statement of a material fact or omitted to state a
material fact required to be stated therein or necessary in order to make the
statements therein, in light of the circumstances in which they were made, not
misleading. The Company has timely filed all registration statements, reports
and other filings required to be filed with the Securities and Exchange
Commission under its rules and regulations except as set forth on Schedule 2.6.
No material developments have occurred since the date of APG's last report on
Form 10-Q which have not been disclosed to PBT, including any such material
development which would be required to be disclosed in a 10-Q or Report on 8-K.

         SECTION 2.7 Other Matters.

         (a) APG represents, warrants and confirms to PBT that it is not as of
the date hereof, or after giving effect to the transactions contemplated hereby,
by the Related Agreements and the Permatex Acquisition and the AC Tech
Acquisition (the "Transactions"), an affiliate, joint venturer or partner of PBT
or any of its subsidiaries or affiliates.

         (b) Each of APG and the APG Parties acknowledges that such person has
received and has had ample opportunity to review and understand the current form
of this Agreement, all of the exhibits and schedules hereto, and all of its
Related Agreements including the terms of the investment by APG in PBT capital
stock (the "APG PBT Investment") pursuant to the APG Subscription Agreement,
including the PBT repurchase rights set forth therein, the PBT Stockholders
Agreement and the other documents made available pursuant to the PBT
Subscription Agreement (collectively, the "Operative Documents"). PBT has
afforded each of APG and each APG Party and such party's advisors, if any, the
opportunity to discuss the Transactions and to ask questions of representatives
of PBT concerning the terms and conditions of the Transactions and the Operative
Documents, and such representatives have provided answers to all such questions
concerning the Transactions and the Operative Documents satisfactory to such
party. Each of APG and the APG Parties has consulted its own financial,

                                       5
<PAGE>   9
tax, accounting and legal advisors, if any, as to such party's participation in
the Transactions and the consequences thereof and risks associated therewith and
the Operative Documents. Each of APG and the APG Parties and such party's
advisors, if any, have examined or have had the opportunity to examine before
the date hereof the Operative Documents and all information that such party
deems to be material to an understanding of the Operative Documents and the
Transactions.

         (c) APG certifies and acknowledges that its board of directors,
including its independent and disinterested director acting in accordance with
applicable law, have determined, after full deliberation that the Transactions
are fair to and in the best interest of APG and its stockholders and provide
fair and adequate consideration to APG, after taking into account the
transactions contemplated by the APG Letter of Intent and the AC Tech Letter of
Intent, the pace of such transactions, the status of financing, issues and
possibility of timely (if any) closure, and APG investment returns, among other
things. The resolutions, duly certified, of APG's board of directors to the
effect of the foregoing and to approve the Transactions are attached hereto as
Exhibit D.

                                   ARTICLE III

                            COVENANTS AND AGREEMENTS

         SECTION 3.1 Formation of Special Purpose Subsidiary.

                  (a) Prior to the date hereof, APG has formed a wholly-owned,
         "bankruptcy remote", special purpose subsidiary, APG Special Purpose
         Sub, under the laws of Delaware ("APG Special Purpose Sub"), pursuant
         to a certificate of incorporation, by-laws, and other customary
         organizational documents and resolutions in form and substance
         reasonably satisfactory to PBT. APG's investment in PBT capital stock
         as contemplated by the PBT Letter of Intent has been made by APG
         Special Purpose Sub which, as of the date hereof, has executed and
         delivered (i) the APG Subscription Agreement, dated the date hereof,
         with PBT, substantially in the form attached as Exhibit A ("APG
         Subscription Agreement"), and (ii) the PBT Stockholders Agreement,
         dated the date hereof, substantially in the form attached as Exhibit B
         ("PBT Stockholders Agreement").

                  (b) APG represents, warrants, covenants and agrees to and with
         PBT that APG Special Purpose Sub has and will have no obligations or
         liabilities of any kind, directly or indirectly, except as set forth in
         its organizational documents as of the date hereof and in the APG
         Subscription Agreement and the PBT Stockholders Agreement and except as
         arise by applicable law and that its only business will be to hold its
         PBT Stock.

                                       6
<PAGE>   10
                  (c) APG represents, warrants, covenants and agrees to and with
         PBT that APG will not directly or indirectly, (i) amend or modify in
         any respect the certificate of incorporation, by-laws or other
         organizational documents of APG Special Purpose Sub, (ii) transfer,
         sell or dispose any stock, ownership, interest or rights in respect of
         APG Special Purpose Sub and its stock assets or rights, or (iii)
         transfer, assign or contract the management or administration of APG
         Special Purpose Sub, in each case, without the prior written approval
         of PBT.

         SECTION 3.2 Subsidiary Contribution of All Existing Assets and
         Liabilities.

                  (a) APG has formed a wholly-owned subsidiary, zeropaper.com,
         Inc., under the laws of Delaware ("APG Newco"), and has at its own
         expense transferred all properties, assets, rights, obligations and
         liabilities, and all contingent liabilities, known and unknown, of APG,
         including, but not limited to, the stock of Klein Engines and
         Competition Components, Inc., Automotive Specialty Chemicals Group,
         Inc., Royal Purple Motor Oil, Inc., D3 Design Works, Inc., IMSG
         Properties, D'Artagnan Associates, Inc. and Boyd's Wheels, Inc. and the
         member interests of Cristen Powell Enterprises (the "Downstream
         Assets"), to APG Newco (the "Subsidiary Contribution"), provided, that
         the Subsidiary Contribution does not involve or transfer APG's
         ownership of APG Special Purpose Sub. Upon completion of the Subsidiary
         Contribution, APG represents, warrants and confirms to PBT that APG
         will be a holding company, owning shares of APG Special Purpose Sub and
         APG Newco, with no other properties, assets, rights, interests,
         obligations or liabilities.

                  (b) APG represents, warrants and confirms to PBT that (i)
         after the Subsidiary Contribution, APG will be solvent, and will have
         sufficient cash, capital and financial resources to conduct its
         business and pay its debts, obligations and liabilities when due, and
         (ii) its determination to organize APG Newco and pursue the Subsidiary
         Contribution has been separately considered, analyzed and pursued by
         APG, apart from the other transactions contemplated by this Agreement,
         and that PBT has not been involved with, participated in, structured or
         directed the Subsidiary Contribution.

         SECTION 3.3 Redemption and Conversion of APG Preferred Stock.

                  (a) APG has duly redeemed and converted in full its Series A
         Preferred Stock from the holders thereof and will issue shares of
         Common Stock in exchange for the redeemed and converted shares in the
         amounts and to the persons set forth on Schedule 3.3. APG represents,
         warrants and confirms to PBT that such redemption and conversion was
         completed in accordance with the terms and provisions of the Series A
         Preferred Stock and any agreements and instruments relating thereto and
         applicable law.

                  (b) All APG Parties which were holders of Series A Preferred
         Stock acknowledge and agree that they have received payment in full for
         the Series A Preferred

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<PAGE>   11
         Stock and all rights with respect to the Series A Preferred Stock have
         been terminated, including any rights pursuant to the terms of the
         Series A Preferred Stock and under any agreements, instruments,
         documents, commitments or promises relating thereto.

         SECTION 3.4 Exchange of Bridge Debt and Other Debt; Issuance of
         Preferred Stock.

                  (a) APG has duly redeemed and exchanged in full the $2 million
         aggregate principal amount of bridge notes issued to the persons set
         forth on Schedule 3.4 (the "Bridge Notes") from the holders thereof and
         has issued shares of Series B Preferred Stock in exchange for the
         redeemed and exchanged Bridge Notes in the amounts set forth in
         Schedule 3.4. APG represents, warrants and confirms to PBT that such
         exchange was completed in accordance with the terms and provisions of
         the Bridge Notes and agreements and instruments relating thereto and
         applicable law.

                  (b) All APG Parties which were holders of Bridge Notes
         acknowledge and agree that they have received payment in full for the
         Bridge Notes and all rights with respect to the Bridge Notes have been
         terminated, including any rights pursuant to the terms of the Bridge
         Notes and under agreements, instruments, documents, commitments or
         promises relating thereto.

                  (c) APG has duly issued to Andy Evans in consideration of the
         assumption of $1.48 million of indebtedness of APG (the "Other Debt"),
         $1.48 million aggregate amount of its Series B Preferred Stock. APG
         represents, warrants and confirms to PBT that the assumption of the
         Other Debt was completed in accordance with the terms and provisions of
         the Other Debt and agreements and instruments relating thereto and
         applicable law.

         SECTION 3.5 Employment and Stock Matters.

         (a) APG acknowledges and agrees that certain of its officers and
employees, including Dean Willard and the employees listed on Schedule 3.5 (the
"Shared Employees"), will also be employed from the date hereof by, and will
receive compensation and benefits from, PBT and its subsidiaries, and in certain
cases, receive PBT employment agreements which have been separately disclosed to
APG. APG hereby consents to the employment and service of all such Shared
Employees for PBT and its subsidiaries. APG also acknowledges that substantially
all of the business time and efforts of the Shared Employees shall be devoted to
the business of PBT and its subsidiaries.

         (b) APG acknowledges and agrees that Dean Willard and certain other
officers and employees of APG will (i) directly invest in PBT capital stock, as
contemplated by the PBT Stockholders Agreement, will own such PBT capital stock
in addition to and separate from their investment in APG, and (ii) will receive
options pursuant to Section 3.6 as an incentive for them in their capacity as
employees of PBT.

                                       8
<PAGE>   12
         (c) APG acknowledges and agrees that PBT officers and employees who are
also associated with APG, including the recipients of the New Options referenced
below, will also have the right, under the APG Subscription Agreement, under
certain circumstances, to participate in the PBT repurchase and call rights in
respect of the PBT capital stock acquired by APG pursuant to the APG
Subscription Agreement.

         SECTION 3.6 APG Stock Option Grants. APG has authorized and will grant
effective the close of business on Monday, August 2, 1999, options to purchase
an aggregate of 2,325,000 shares of Common Stock pursuant to the APG 1998 Stock
Option Plan to the persons set forth on Schedule 3.6 (the "New Options");
provided, however that the Option Agreements have not yet been executed by the
recipients thereof. The New Options are exercisable for shares of Common Stock,
which together with shares of Common Stock (including contingent stock) held by
Dean Willard, represent approximately 18.5% of the outstanding shares of Common
Stock on a fully diluted basis at the date hereof, giving effect to the exchange
and conversion of the Preferred Stock and the exchange of the Bridge Notes and
Other Debt contemplated by Sections 3.3 and 3.4. The grant of the options has
been duly authorized by APG and each New Option has been issued pursuant to an
Option Agreement in accordance with the APG 1998 Stock Option Plan and
substantially in the form of Exhibit C. The shares of Common Stock for which the
New Options may be exercised have been duly authorized by APG and when issued
upon the due exercise of the New Options will be fully paid and non-assessable.
APG agrees not to amend or modify, directly or indirectly, the terms and
provisions of the New Options or the terms of the APG 1998 Stock Option Plan in
any material respect or in any respect detrimental to the holders without the
written consent of PBT. APG shall not authorize for issuance under the APG 1998
Stock Option Plan additional shares of Common Stock or additional options if the
effect of any such issuance would alter the percentage ownership of the New
Options. APG covenants and agrees that if APG issues any capital stock or
instruments convertible into APG capital stock at an effective purchase price
below the exercise price of the New Options or below the then prevailing fair
market value of the Common Stock, it shall amend the terms of the New Options to
make equitable adjustments thereto in order to maintain the beneficial ownership
of the New Options.

         SECTION 3.7 Contingent Stock Grants and Amendments. APG has duly issued
to Dean Willard contingent stock grants in respect of 2,000,000 shares of Common
Stock pursuant to contingent stock agreements attached hereto as Exhibit E and
all of such shares are subject to further restriction and vesting, as confirmed
in documentation also attached as Exhibit F hereto. APG agrees not to amend the
terms of the contingent stock issued to Dean Willard described herein in any
material respect or in any respect detrimental to Dean Willard without the
written consent of PBT. APG covenants and agrees that if APG issues any capital
stock or instruments convertible into APG capital stock at an effective purchase
price below the then prevailing fair market value of the Common Stock, it shall
amend the terms of the contingent stock granted to Dean Willard hereunder to
make equitable adjustments thereto in order to maintain the beneficial ownership
of APG of Dean Willard relating to the contingent stock on the date hereof.

                                       9
<PAGE>   13
         SECTION 3.8 Opinion of Counsel to APG. Counsel to APG has delivered to
PBT on the date hereof a legal opinion covering the legal matters set forth in
Sections 2.1, 2.2, 2.3 and 2.5 on behalf of APG in form reasonably acceptable to
PBT.

                                   ARTICLE IV

                        BENEFITS, RELEASE AND INDEMNITIES

         SECTION 4.1 APG Reimbursements, Payments and Investment.

                  (a) At the Closing, PBT will pay or arrange for the payment to
         APG of (i) APG's $3 million deposit to CoAmerica, as escrow agent, in
         connection with the proposed Permatex Acquisition, (ii) APG's $1
         million deposit to Ampersand in connection with the proposed AC Tech
         Acquisition, the proceeds of which were contributed to AC Tech by
         Ampersand, (iii) up to $4.8 million in connection with the Pay-Off
         Amount, (iv) reasonable and documented APG third party out-of-pocket
         expenses (invoices of which have been delivered to PBT) incurred by APG
         in connection with the Permatex Acquisition, the AC Tech Acquisition
         and the APG investment contemplated by this Agreement, but no other
         purpose, provided, that such expenses do not exceed $800,000 in the
         aggregate (the amounts described in clauses (i) through (iv) are
         referred to as the "APG Reimbursement"), and (v) reasonable and
         documented APG third party out-of-pocket expenses in respect of
         counsel, auditors and environmental consultants in excess of $800,000
         incurred by APG in connection with the Permatex Acquisition by PBT and,
         the AC Tech Acquisition by PBT, provided, that such expenses do not
         exceed $880,400 in the aggregate.

                  (b) At the Closing, APG Special Purpose Sub will purchase PBT
         capital stock pursuant to the APG Subscription Agreement and subject to
         the PBT Stockholders Agreement.

         SECTION 4.2 Release. In consideration of Section 4.1, the investment
opportunity in PBT, and the benefits and opportunities for APG contemplated
hereby, and as a condition of PBT entering into this Agreement and the
agreements and transactions contemplated hereby making the foregoing available
to APG and closing the Permatex Acquisition and the AC Tech Acquisition, each of
APG and the APG Parties hereby irrevocably and unconditionally releases, acquits
and forever discharges on behalf of itself and any person acting by, through, or
under or in concert with any of APG or the APG Parties and all persons acting
by, through, under or in concert with any of them (collectively the
"Releasees"), or any of them, each of PBT, The Jordan Company LLC, and Dean
Willard, and their respective subsidiaries, officers, directors, members,
partners, employees, agents, advisors, affiliates, stockholders, divisions,
predecessors, successors, assigns, representatives, attorneys, and all persons
acting by, through, under or in concert with any of them (collectively, the
"Released Parties") from any and all charges, complaints, claims, suits,
judgments, demands, actions, obligations or liabilities, damages, causes of
action (including attorneys' and litigation fees and costs) of any nature
whatsoever,

                                       10
<PAGE>   14
including all Losses, known or unknown, emanating from, arising out of, or in
any way whatsoever arising or resulting from any action relating to APG, the PBT
Letter of Interest, the Permatex Acquisition, the AC Tech Letter of Intent, the
AC Tech Acquisition, the Operative Agreements and all transactions contemplated
hereby and thereby, including, without limitation, all Transactions, and all
historical and current activities of APG, including, without limitation, its
organization and formation, its business and operations, its investments, debt
and equity financing, acquisitions and related efforts and activities and all
transactions contemplated herein, or any action taken by, or any action failed
to be taken by the Released Parties or the Releasees in connection therewith,
and each of APG and the APG Parties agrees that neither it, nor any person
acting by, through, or under such party shall institute or pursue any action or
actions, cause or causes of action (in law or in equity), suits, or claims in
state or federal court against or adverse to the Released Parties, or directly
or indirectly assist or cooperate with any person to institute or pursue any
such action or proceeding, arising from or attributable to the Releasees in
connection with the foregoing.

         SECTION 4.3 Indemnification by APG.

                  (a) APG agrees to indemnify and hold harmless, PBT, its
         subsidiaries, The Jordan Company LLC and each of their respective
         affiliates, and their respective officers, directors, members,
         partners, employees, stockholders, representatives and agents, against,
         and agree to hold it and them harmless from, any and all Losses
         incurred or suffered by PBT or any of the foregoing persons (or any
         combination thereof) arising out of or in connection with any of the
         following: (i) any breach of or any inaccuracy in any representation or
         warranty made by APG or the APG Parties pursuant to this Agreement or
         any Related Agreement, (ii) any breach of or failure by APG or the APG
         Parties to perform any covenant, agreement or obligation of such
         parties in this Agreement or any Related Agreement, (iii) this
         Agreement, the PBT Letter of Interest, the Permatex Acquisition, the AC
         Tech Letter of Intent, the AC Tech Acquisition, the Operative
         Agreements and all agreements, instruments and transactions
         contemplated hereby or thereby, all historical and current activities
         of APG, including, without limitation, its organization and formation,
         its business and operations, its investments, debt and equity
         financing, acquisitions and related efforts and activities and all
         transactions contemplated herein, (iv) any lawsuits, claims or other
         litigation, known or unknown, by, on behalf of or involving APG
         stockholders, lenders, directors, officers, employees, advisors, agents
         or other persons associated with APG, (v) any broker, finder, investor,
         advisor or financier engaged by APG, AC Tech or the APG Parties,
         including, without limitation, Wasserstein Perella & Co. and Inc., Wm.
         Sword & Co., Inc., Triumph Capital Group, Inc. and Triumph Partners
         III, L.P.

                  (b) In connection with the foregoing indemnification, counsel
         selected by PBT will be entitled to conduct and lead the defense,
         including any settlement or compromise, provided that subject to the
         absence of any conflict or other ethical or professional reason, APG
         may (at its own expense) designate counsel to participate in such
         defense.

                                       11
<PAGE>   15
                  (c) APG agrees to indemnify the Shared Employees to the
         fullest extent permitted by Delaware law by reason of the fact that
         such Shared Employee was serving as an officer, director, employee or
         agent of APG.

                                    ARTICLE V

                                  MISCELLANEOUS

         SECTION 5.1 Expenses. Except as expressly provided herein, each party
hereto shall bear its own expenses (including legal fees and expenses) with
respect to this Agreement and the transactions contemplated hereby; provided,
however, that if any party hereto incurs any legal fees, expenses or other
amounts to enforce the obligations of the other parties hereto, the losing
parties shall reimburse the prevailing parties for all such fees and expenses.

         SECTION 5.2 Amendment. This Agreement may be amended, modified or
supplemented but only in writing signed by the APG, the APG Parties and PBT.

         SECTION 5.3 Notices. Any notice, request, instruction or other document
to be given hereunder by a party hereto shall be in writing and shall be deemed
to have been given, (a) when received if given in person or by courier or a
courier service, (b) on the date of transmission if sent by telex, facsimile or
other wire transmission or (c) five Business Days after being deposited in the
U.S. mail, certified or registered mail, postage prepaid:

         (i)  If to PBT, addressed as follows:

                  c/o Jonathan F. Boucher
                  The Jordan Company
                  767 Fifth Avenue
                  48th Floor
                  New York, New York 10153
                  Facsimile No.: (212) 755-5263

                  with a copy to:

                  Mayer, Brown & Platt
                  1675 Broadway
                  New York, New York 10019
                  Attention:  James B. Carlson
                  Facsimile No.:  (212) 262-1910

         (ii) If to APG, addressed as follows:

                  c/o Dean Willard and Board of Directors
                  7341 Anaconda Avenue

                                       12
<PAGE>   16
                  Garden Grove, CA  92841
                  Facsimile No.:  (714) 373-1913

                  with a copy to:

                  DeCastro, West & Chodorow, Inc.
                  10960 Wilshire Blvd.
                  Suite 1400
                  Los Angeles, CA  90024
                  Attention: Menasche Nass
                  Facsimile No.:  (310) 473-0123

         (iii) If to an APG Party, addressed as set forth on Schedule 6.4.

or to such other individual or address as a party hereto may designate for
itself by notice given as herein provided.

         SECTION 5.4 Waivers. The failure of a party hereto at any time or times
to require performance of any provision hereof shall in no manner affect its
right at a later time to enforce the same. No waiver by a party of any condition
or of any breach of any term, covenant, representation or warranty contained in
this Agreement shall be effective unless in writing, and no waiver in any one or
more instances shall be deemed to be a further or continuing waiver of any such
condition or breach in other instances or a waiver of any other condition or
breach of any other term, covenant, representation or warranty.

         SECTION 5.5 Counterparts. This Agreement may be executed in
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

         SECTION 5.6 Interpretation. The headings preceding the text of Articles
and Sections included in this Agreement and the headings to Sections of the
disclosure schedule are for convenience only and shall not be deemed part of
this Agreement or the disclosure schedules or be given any effect in
interpreting this Agreement or the Disclosure Schedule. The use of the
masculine, feminine or neuter gender herein shall not limit any provision of
this Agreement. The use of the terms "including" or "include" shall in all cases
herein mean "including, without limitation" or "include, without limitation,"
respectively. Underscored references to Articles, Sections, Paragraphs,
Subsections, Exhibits or Schedules shall refer to those portions of this
Agreement. Time is of the essence of each and every covenant, agreement and
obligation in this Agreement.

         SECTION 5.7 APPLICABLE LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND
CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF NEW
YORK WITHOUT GIVING EFFECT TO THE PRINCIPLES OF CONFLICTS OF LAW THEREOF.

                                       13
<PAGE>   17
         SECTION 5.8 Binding Agreement. This Agreement and the Related
Agreements shall be binding upon and inure to the benefit of the parties hereto
and their respective successors and assigns notwithstanding if certain APG
Parties listed on Schedule 1 hereto do not execute this Agreement on the date
hereof. No party may assign its rights or obligations under this Agreement
without the prior written consent of the other parties. The parties hereto agree
that each such party shall be entitle to equitable remedies, including specific
performance, of the obligations hereunder.

         SECTION 5.9 Third Party Beneficiaries. This Agreement is solely for the
benefit of the parties hereto and the Released Parties and no provision of this
Agreement shall be deemed to confer upon third parties any remedy, claim,
liability, reimbursement, cause of action or other right.

         SECTION 5.10 Entire Understanding. The Exhibits and Schedules
identified in this Agreement are incorporated herein by reference and made a
part hereof. This Agreement and the Related Agreements set forth the entire
agreement and understanding of the parties hereto and supersede any and all
prior agreements, arrangements and understandings among the parties.

         SECTION 5.11 JURISDICTION OF DISPUTES; WAIVER OF JURY TRIAL. IN THE
EVENT ANY PARTY TO THIS AGREEMENT COMMENCES ANY LITIGATION, PROCEEDING OR OTHER
LEGAL ACTION IN CONNECTION WITH OR RELATING TO THIS AGREEMENT, ANY RELATED
AGREEMENT OR ANY MATTERS DESCRIBED OR CONTEMPLATED HEREIN OR THEREIN, WITH
RESPECT TO ANY OF THE MATTERS DESCRIBED OR CONTEMPLATED HEREIN OR THEREIN, THE
PARTIES TO THIS AGREEMENT HEREBY (A) AGREE UNDER ALL CIRCUMSTANCES ABSOLUTELY
AND IRREVOCABLY TO INSTITUTE ANY LITIGATION, PROCEEDING OR OTHER LEGAL ACTION IN
A COURT OF COMPETENT JURISDICTION LOCATED WITHIN THE CITY OF NEW YORK, NEW YORK,
WHETHER A STATE OR FEDERAL COURT; (B) AGREE THAT IN THE EVENT OF ANY SUCH
LITIGATION, PROCEEDING OR ACTION, SUCH PARTIES WILL CONSENT AND SUBMIT TO
PERSONAL JURISDICTION IN ANY SUCH COURT DESCRIBED IN CLAUSE (A) OF THIS SECTION
AND TO SERVICE OF PROCESS UPON THEM IN ACCORDANCE WITH THE RULES AND STATUTES
GOVERNING SERVICE OF PROCESS (IT BEING UNDERSTOOD THAT NOTHING IN THIS SECTION
SHALL BE DEEMED TO PREVENT ANY PARTY FROM SEEKING TO REMOVE ANY ACTION TO A
FEDERAL COURT IN NEW YORK, NEW YORK); (C) AGREE TO WAIVE TO THE FULL EXTENT
PERMITTED BY LAW ANY OBJECTION THAT THEY MAY NOW OR HEREAFTER HAVE TO THE VENUE
OF ANY SUCH LITIGATION, PROCEEDING OR ACTION IN ANY SUCH COURT OR THAT ANY SUCH
LITIGATION, PROCEEDING OR ACTION WAS BROUGHT IN AN INCONVENIENT FORUM; (D)
DESIGNATE, APPOINT AND DIRECT CT CORPORATION SYSTEM AS ITS AUTHORIZED AGENT TO
RECEIVE ON ITS BEHALF SERVICE OF ANY AND ALL PROCESS AND DOCUMENTS IN ANY LEGAL
PROCEEDING IN THE STATE OF NEW YORK; (E) AGREE TO NOTIFY THE OTHER PARTIES TO
THIS AGREEMENT IMMEDIATELY IF SUCH AGENT SHALL REFUSE TO ACT, OR BE

                                       14
<PAGE>   18
PREVENTED FROM ACTING, AS AGENT AND, IN SUCH EVENT, PROMPTLY TO DESIGNATE
ANOTHER AGENT IN THE CITY OF NEW YORK, SATISFACTORY TO SELLERS AND PURCHASER, TO
SERVE IN PLACE OF SUCH AGENT AND DELIVER TO THE OTHER PARTY WRITTEN EVIDENCE OF
SUCH SUBSTITUTE AGENT'S ACCEPTANCE OF SUCH DESIGNATION; (F) AGREE AS AN
ALTERNATIVE METHOD OF SERVICE TO SERVICE OF PROCESS IN ANY LEGAL PROCEEDING BY
MAILING OF COPIES THEREOF TO SUCH PARTY AT ITS ADDRESS SET FORTH IN THIS
AGREEMENT FOR COMMUNICATIONS TO SUCH PARTY; (G) AGREE THAT ANY SERVICE MADE AS
PROVIDED HEREIN SHALL BE EFFECTIVE AND BINDING SERVICE IN EVERY RESPECT; AND (H)
AGREE THAT NOTHING HEREIN SHALL AFFECT THE RIGHTS OF ANY PARTY TO EFFECT SERVICE
OF PROCESS IN ANY OTHER MANNER PERMITTED BY LAW. EACH PARTY HERETO WAIVES THE
RIGHT TO A TRIAL BY JURY IN ANY DISPUTE IN CONNECTION WITH OR RELATING TO THIS
AGREEMENT, ANY RELATED AGREEMENT OR ANY MATTERS DESCRIBED OR CONTEMPLATED HEREIN
OR THEREIN, AND AGREE TO TAKE ANY AND ALL ACTION NECESSARY OR APPROPRIATE TO
EFFECT SUCH WAIVER.

         SECTION 5.12 Severability. Any term or provision of this Agreement that
is invalid or unenforceable in any situation in any jurisdiction shall not
affect the validity of enforceability of the remaining terms and provisions
hereof or the validity or enforceability of the offending term or provision in
any other situation or in any other situation or in any other jurisdiction. If
the final judgement of a court of competent jurisdiction declares that any term
or provision hereof is invalid or unenforceable, the Parties agree that the
court making the determination of invalidity or unenforceability shall have the
power to reduce the scope, duration, or area of the term or provision, to delete
specific words or phrases, or to replace any invalid or unenforceable term or
provision with a term or provision that is valid and enforceable and that comes
closest to expressing the intention of the invalid or unenforceable term or
provision, and this Agreement shall be enforceable as so modified after the
expiration of the time within which the judgment may be appealed.

         SECTION 5.13 Construction. The language used in this Agreement will be
deemed to be the language chosen by the Parties to express their mutual intent,
and no rule of strict construction shall be applied against any Party. Any
reference to any federal, state, local, or foreign statute or law shall be
deemed also to refer to all rules and regulations promulgated thereunder, unless
the context requires otherwise.

                                       15
<PAGE>   19
         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed and delivered as of the date first above written.

                                 AUTOMOTIVE PERFORMANCE
                                 GROUP, INC.

                                 By: /s/ Dean M. Willard
                                    -----------------------------------------
                                 Name:
                                      ---------------------------------------
                                 Title:
                                       --------------------------------------

                                 APG SPECIAL PURPOSE SUBSIDIARY, INC.

                                 By: /s/ Dean M. Willard
                                    -----------------------------------------
                                 Name:
                                      ---------------------------------------
                                 Title:
                                       --------------------------------------

                                 ZEROPAPER.COM, INC.

                                 By: /s/ Dean M. Willard
                                    -----------------------------------------
                                 Name:
                                      ---------------------------------------
                                 Title:
                                       --------------------------------------

                                 PBT BRANDS, INC.

                                 By: /s/ Jonathan Boucher
                                    -----------------------------------------
                                 Name:  Jonathan Boucher
                                      ---------------------------------------
                                 Title: Vice President
                                       --------------------------------------

                                                                   APG Agreement
<PAGE>   20
                                 APG PARTIES:

                                 /s/ Andrew Evans
                                 --------------------------------------------
                                 Andrew Evans

                                 /s/ Ann L. Evans
                                 --------------------------------------------
                                 Ann Evans

                                 DOMINION INCOME
                                 MANAGEMENT CORP.

                                 By: /s Andrew L. Evans
                                    -----------------------------------------
                                 Name:  Andrew L. Evans
                                      ---------------------------------------
                                 Title: President
                                       --------------------------------------

                                 DOMINION INCOME MANAGEMENT CORP.
                                 PROFIT SHARING PLAN

                                 By: /s/ Andrew L. Evans
                                    -----------------------------------------
                                 Name: Andrew L. Evans
                                      ---------------------------------------
                                 Title: CEO
                                       --------------------------------------

                                 MARITIME CAPITAL PARTNERS

                                 By: /s/ Andrew L. Evans
                                    -----------------------------------------
                                 Name:  Andrew L. Evans
                                      ---------------------------------------
                                 Title: Managing Partner
                                       --------------------------------------

                                                                   APG Agreement
<PAGE>   21
                                 LANCER OFFSHORE INC.

                                 By: /s/ Michael Lauer
                                    -----------------------------------------
                                 Name:  Michael Lauer
                                      ---------------------------------------
                                 Title: Investment Manager
                                       --------------------------------------

                                 LANCER PARTNERS L.P.

                                 By: /s/ Michael Lauer
                                    -----------------------------------------
                                 Name:  Michael Lauer
                                      ---------------------------------------
                                 Title: General Partner
                                       --------------------------------------

                                 LANCER VOYAGER FUND

                                 By: /s/ Michael Lauer
                                    -----------------------------------------
                                 Name:  Michael Lauer
                                      ---------------------------------------
                                 Title: Investment Manager
                                       --------------------------------------

                                 /s/ Michael Lauer
                                 --------------------------------------------
                                 Michael Lauer

                                 FOUNDERS MEZZANINE INC. III

                                 By:
                                    -----------------------------------------
                                 Name:
                                      ---------------------------------------
                                 Title:
                                       --------------------------------------

                                                                   APG Agreement
<PAGE>   22
                                 FOUNDERS EQUITY GROUP, INC.

                                 By:
                                    -----------------------------------------
                                 Name:
                                      ---------------------------------------
                                 Title:
                                       --------------------------------------

                                 BEACON HOLDINGS

                                 By:
                                    -----------------------------------------
                                 Name:
                                      ---------------------------------------
                                 Title:
                                       --------------------------------------

                                 --------------------------------------------
                                 Donald F. Moorehead

                                 --------------------------------------------
                                 George Moorehead

                                 --------------------------------------------
                                 Karen Mosley

                                 --------------------------------------------
                                 William J. Mosley

                                 --------------------------------------------
                                 Scotty D. Cook

                                 --------------------------------------------
                                 Scott Cook

                                 --------------------------------------------
                                 Svor Flannery

                                                                   APG Agreement
<PAGE>   23
                                 --------------------------------------------
                                 Tim Schweizer

                                 THE ORBITER FUND, LTD.

                                 By: /s/ Michael Lauer
                                    -----------------------------------------
                                 Name:  Michael Lauer
                                      ---------------------------------------
                                 Title: Investment Manager
                                       --------------------------------------

                                 /s/ Dean Willard
                                 --------------------------------------------
                                 Dean Willard

                                                                   APG Agreement<PAGE>   1
                  EMPLOYMENT AND NON-INTERFERENCE AGREEMENT

     This Employment and Non-Interference Agreement, dated as of July 30, 1999
(this "Agreement"), is by and between Dean Willard (the "Executive") and PBT
Brands, Inc., a Delaware corporation (the "Company").

                             W I T N E S S E T H:

     WHEREAS, the Company wishes to obtain the future services of the Executive
for the Company; and

     WHEREAS, the Executive is willing, upon the terms and conditions herein set
forth, to provide services hereunder; and

     WHEREAS, the Company wishes to secure the Executive's non-interference,
upon the terms and conditions herein set forth;

     NOW, THEREFORE, in consideration of the mutual promises and covenants
contained herein, and intending to be legally bound hereby, the parties hereto
agree as follows:

     1.   Nature of Employment

     Subject to Section 4, the Company hereby employs Executive, and Executive
agrees to accept such employment, during the Term of Employment (as defined in
Section 4(a)), as Chairman and Chief Executive Officer of the Company. The
Company shall also cause the Executive to be employed, and Executive hereby
agrees to be employed, during the Term of Employment by each of the companies
listed in Schedule 1 (which companies, together with the Company, shall be
referred to collectively as the "Company Group") , in each case as Chairman and
Chief Executive Officer of such company. The Executive's principal place of
residence shall be in the State of California.

     2.   Extent of Employment

     (a) During the Term of Employment, the Executive shall perform his
obligations hereunder faithfully and to the best of his ability under the
direction of the Board of Directors of the Company to which the Executive shall
directly report, and shall abide by the rules, customs and usages from time to
time established by the Company.
<PAGE>   2
     (b) During the Term of Employment, the Executive shall devote substantially
all of his business time, energy and skill to the performance of his duties,
responsibilities and obligations hereunder (except for vacation periods and
reasonable periods of illness or other incapacity), consistent with past
practices and norms in similar positions. The Executive will have such authority
and power as are inherent to the undertakings applicable to his office and
necessary to carry out his responsibilities an d the duties required of him
hereunder.

     (c) Nothing contained herein shall require Executive to follow any
directive or to perform any act which would violate any laws, ordinances,
regulations or rules of any governmental, regulatory or administrative body,
agent or authority, any court or judicial authority, or any public, private or
industry regulatory authority (collectively "Regulations"). Executive will not
knowingly (i) breach or violate any provision of any Regulations in any material
respect or (ii) otherwise act in any manner which might reasonably be expected
to have a material adverse effect on the ongoing business, operations,
conditions, prospects or other business relationships or properties of any
company in the Company Group.

     3. Compensation. During the Term of Employment, the Company shall pay
compensation to Executive as base compensation for his services hereunder, in
substantially equal bi-weekly installments, an annual base salary of $360,000.
The Board of Directors shall annually, and in its sole discretion, determine
whether the base salary should be increased and, if so, the amount of such
increase.

     4.   Term of Employment; Termination

     (a) The "Term of Employment" shall commence on the date hereof and shall
continue for a period of three years; provided, that such term shall continue
for the twelve month period following such initial three year period, and for
each twelve month period thereafter, unless at least 90 days prior to the
scheduled expiration date, either the Executive or the Company notifies the
other of its decision not to continue such term. Should the Executive's
employment be earlier terminated by the Company pursuant to Section 4(b), by
the Executive pursuant to Section 4(c) or mutually by both parties pursuant to
Section 4(d), the Term of Employment shall end on the date of such earlier
termination. Nothing contained herein shall be deemed to be an obligation on the
part of the Company to extend the Term of Employment.

     (b) Subject to the Company's obligations to make the payments contemplated
by Section 4(e), the Term of Employment may be terminated at any time by the
Company:

          (i) upon the death of Executive;

          (ii) in the event that because of physical or mental disability the
     Executive is unable to perform, and does not perform, as certified by a
     mutually agreeable

                                      -2-
<PAGE>   3
competent medical physician, his material duties hereunder for 180 days in any
continuous 210 day period;

          (iii) for Cause;

          (iv) for any other reason not referred to in clauses (i) through (iii)
     or no reason, and the Company shall not be required to specify a reason for
     the termination, provided that termination of the Executive's employment by
     the Company shall be deemed to have occurred under this clause (iv) only if
     it is not for reasons described in clauses (i) though (iii) such that this
     Agreement, subject to the provisions of Section 4(e), shall be construed as
     terminable at will by the Company.

     Executive acknowledges that no representations or promises have been made
concerning the grounds for termination or the future operation of the Company's
business, and that, except as set forth in the following sentence, nothing
contained herein or otherwise stated by or on behalf of the Company modifies or
amends the right of the Company to terminate Executive at any time, with or
without Cause. Termination shall become effective 30 days after, or, if for
Cause, upon the delivery by the Company to t he Executive of notice specifying
such termination and, if for Cause, the reasons therefor.

     (c) Subject to the Company's obligations to make the payments contemplated
by Section 4(e), the Term of Employment may be terminated at any time by the
Executive:

          (i)   upon the death of Executive;

          (ii) in the event that because of physical or mental disability the
     Executive is unable to perform, and does not perform, as certified by a
     mutually agreeable competent medical physician, his material duties
     hereunder for 180 days in any continuous 210 day period;

          (iii) voluntarily or for any reason or no reason not referred to in
     clauses (i) and (ii) in each case, after 90 days' prior written notice to
     the Company and its Board of Directors.

     (d) Subject to the Company's obligations to make the payments contemplated
by Section 4(e), the Term of Employment may be terminated at any time by the
mutual agreement of the Company and the Executive. Any termination of the
Executive's employment by mutual agreement of the parties will be memorialized
by an agreement which is reduced to writing and signed by the Executive and a
duly appointed officer of the Company.

     (e) If Executive's employment is terminated for any reason whatsoever, then
Executive shall be entitled to (i) accrued and unpaid base salary and benefits
(including sick pay, vacation pay and benefits under Section 6) with respect to
the period prior to

                                      -3-
<PAGE>   4
termination, (ii) reimbursement for expenses under Section 5 with respect to
such period, and (iii) any other benefits (including COBRA) required by law to
be provided after termination of employment under the circumstances. Except as
may otherwise by expressly provided to the contrary in this Agreement, nothing
in this Agreement shall be construed as requiring the Executive to be treated as
employed by the Company for purposes of any employee benefit plan following the
date of the termination of the Executive's Term of Employment. In the event
Executive's employment is terminated pursuant to:

          (i) Sections 4(b)(i), 4(b)(ii), 4(c)(i) or 4(c)(ii), the Company will
     also pay to Executive (or his estate or representative) the Executive's
     base salary for a six month period;

          (ii) Section 4(b)(iii), 4(c)(iii) or 4(d), there will be no additional
     amounts owing by the Company to Executive under this Agreement from and
     after such termination; and

          (iii) Section 4(b)(iv), the Company will pay to Executive (or his
     estate or representative) the Executive's base salary for the balance of
     the Term of Employment.

     (f) (i) Termination of the Term of Employment will not terminate Sections
7, 8, 9, 10, 12 through 24, or any other provisions not associated specifically
with the Term of Employment.

          (ii) In the event of termination, the Executive shall not have a duty
to mitigate the Company's payment obligations under Section 4(e) by seeking
alternative employment; provided, however, that if the Executive does accept
alternative employment, payment obligations under Section 4(e) shall be
terminated.

     (g) Subject to the terms and conditions of this Agreement, during the
 period beginning on the date of delivery of a notice by the Company or the
 Executive, as the case may be, indicating that the Term of Employment is to be
 terminated, and ending on the actual date the Term of Employment is terminated,
 which, in any event, shall be no later than 90 days following the delivery of
 such notice, the Executive shall continue to perform his duties as set forth in
 this Agreement, and shall also perform such services for the Company as are
 necessary and appropriate for a smooth transition to the Executive's successor,
 if any. Notwithstanding the foregoing provisions of this Section 4(g), the
 Company may suspend the Executive from performing his duties under this
 Agreement following the delivery of a notice by the Executive providing for the
 Executive's resignation, or delivery by the Company of a notice providing for
 the Executive's termination of employment for any reason; provided, however,
 that during the period of suspension (which shall end upon the actual date the
 Term of Employment is terminated, which in any event shall be no later than 90
 days following the delivery of such notice), the Executive shall

                                      -4-
<PAGE>   5
continue to be treated as employed by the Company for other purposes, and his
rights to compensation or benefits shall not be reduced by reason of the
suspension.

     5.   Reimbursement of Expenses

     During the Term of Employment, subject to the approval of the Board of
Directors, the Company shall reimburse Executive for reasonably documented
travel, entertainment and other expenses reasonably incurred by Executive in
connection with the performance of his duties hereunder and, in each case, in
accordance with the rules, customs and usages promulgated by the Company from
time to time in effect; provided, however that the Company shall not reimburse
Executive for any expenses, compensation or other costs relating to his
provision of services to APG.

     6.   Benefits

     The Executive shall be entitled to participate in and be covered by any
insurance plan (including but not limited to medical, dental, health, accident,
hospitalization and disability), vacation, 401(k), profit sharing or other
employee benefit plan of the Company, to the same extent and on the same terms
as such benefits are or may be provided by the Company, at the sole discretion
of the Board of Directors, from time to time to other members of senior
management.

     7.   Confidential Information

     During and after the Term of Employment, Executive will not, directly or
indirectly in one or a series of transactions, disclose to any person, or use or
otherwise exploit for the Executive's own benefit or for the benefit of anyone
other than the Company, any Confidential Information (as defined in Section 11),
whether prepared by Executive or not; provided, however, that any Confidential
Information may be disclosed (i) to officers, representatives, employees and
agents of the Company who need to know such Confidential Information in order
to perform the services or conduct the operations required or expected of them
in the Business (as defined in Section 11) and (ii) in good faith by the
Executive in connection with the performance of his duties hereunder. Executive
shall use his best efforts to prevent the removal of any Confidential
Information from the premises of the Company, except as required in his normal
course of employment by the Company. Executive shall use his best efforts to
cause all persons or entities to whom any Confidential Information shall be
disclosed by him hereunder to observe the terms and conditions set forth herein
as though each such person or entity was bound hereby. Executive shall have no
obligation hereunder to keep confidential any Confidential Information if and to
the extent disclosure of any thereof is specifically required by law; provided,
however, that in the event disclosure is required by applicable law, the
Executive shall provide the Company with prompt notice of such requirement,
prior to making any disclosure, so that the Company may seek an appropriate
protective order. At the request of the Company, Executive agrees to deliver to
the Company, at any time during the Term of Employment, or thereafter, all
Confidential

                                      -5-
<PAGE>   6
Information which he may possess or control. Executive agrees that all
Confidential Information of the Company (whether now or hereafter existing)
conceived, discovered or made by him during the Term of Employment exclusively
belongs to the Company (and not to Executive). Executive will promptly disclose
such Confidential Information to the Company and perform all actions reasonably
requested by the Company to establish and confirm such exclusive ownership.

     8.   Non-Interference

     Executive acknowledges that services to be provided give him the
opportunity to have special knowledge of the Company and its Confidential
Information and the capabilities of individuals employed by or affiliated with
the Company and that interference in these relationships would cause irreparable
injury to the Company. In consideration of this Agreement, Executive covenants
and agrees that:

     (a) If Executive is terminated, for a period of two years from the date of
the final payment under Section 4(e), or if no payment is required to be made to
the Executive by the Company under Section 4(e), the date of termination of the
Term of Employment (the "Restricted Period"), Executive will not, without the
express written approval of the Board of Directors of the Company, anywhere in
the Market, directly or indirectly, in one or a series of transactions, own,
manage, operate, control, invest or acquire an interest in, or otherwise engage
or participate in, whether as a proprietor, partner, stockholder, lender,
director, officer, employee, joint venturer, investor, lessor, agent,
representative or other participant, in any business which competes, directly or
indirectly, with the Business in the Market ("Competitive Business") without
regard to (A) whether the Competitive Business has its office or other business
facilities within or without the Market, (B) whether any of the activities of
the Executive referred to above occur or are performed within or without the
Market or (C) whether the Executive resides, or reports to an office, within or
without the Market; provided, however, that (x) the Executive may, anywhere in
the Market, directly or indirectly, in one or a series of transactions, own,
invest or acquire an interest in up to two percent (2%) of the capital stock of
a corporation whose capital stock is traded publicly, (y) Executive may accept
employment with a successor company to the Company and (z) Executive may
continue to own up to that amount of the capital stock of APG (calculated on a
fully diluted basis assuming the exercise of all outstanding options and other
convertible securities) as he owns as of the date hereof.

     (b) Without regard to the reason for Executive's termination, during the
Restricted Period (which shall not be reduced by (x) any period of violation of
this Agreement by Executive or (y) if the Company is the prevailing party in any
litigation to enforce its rights under this Section 8, the period which is
required for such litigation), Executive will not without the express prior
written approval of the Board of Directors of the Company (A) in one or a series
of transactions, recruit, solicit or otherwise induce or influence any
proprietor, partner, stockholder, lender, director, officer, employee, sales
agent, joint venturer, investor, lessor, customer, agent, representative or any
other person which has a

                                      -6-
<PAGE>   7
business relationship with the Company Group or had a business relationship with
the Company Group within the twenty-four (24) month period preceding the date of
the incident in question, to discontinue, reduce or modify such employment,
agency or business relationship with the Company Group, or (B) employ or seek to
employ or cause any Competitive Business to employ or seek to employ any person
or agent who is then (or was at any time within twenty-four (24) months prior to
the date the Executive or the Competitive Business employs or seeks to employ
such person) employed or retained by the Company Group. Notwithstanding the
foregoing, nothing herein shall prevent the Executive from providing a letter of
recommendation to an employee with respect to a future or any other employment
opportunity.

     (c) The scope and term of this Section 8 would not preclude Executive from
earning a living with an entity that is not a Competitive Business.

     9.   Non-Disparagement.

     During and after the Term of Employment, the Executive agrees that he shall
not make any false, defamatory or disparaging statements about the Company, its
Subsidiaries and Affiliates, or the officers or directors of the Company and its
Subsidiaries and Affiliates. During and after the Term of Employment, the
Company agrees, on behalf of itself and its Subsidiaries and Affiliates, that
neither the officers nor the directors of the Company or its Subsidiaries and
Affiliates shall make any false, defamatory or disparaging statements about the
Executive.

     10.  Defense of Claims.

     The Executive agrees that, for the period beginning on the date hereof, and
continuing for a reasonable period after termination of the Term of Employment,
the Executive will cooperate with the Company in defense of any claims that may
be made against the Company, and will cooperate with the Company in the
prosecution of any claims that may be made by the Company, to the extent that
such claims may relate to services performed by the Executive for the Company.
The Executive agrees to promptly inform the Company if he becomes aware of any
lawsuits involving such claims that may be filed against the Company. The
Company agrees to reimburse the Executive for all of the Executive's reasonable
out-of-pocket expenses associated with such cooperation, including travel
expenses. For periods during and following the Executive's employment with the
Company, the Company agrees to provide reasonable compensation to the Executive
for such cooperation in addition to reimbursement of expenses and his reasonable
attorneys' fees, if any.

                                      -7-
<PAGE>   8
     11.  Definitions

     "Business" means the development, manufacture and marketing of aircraft
sealants, including but not limited to products based upon Morton International,
Inc. supplied polysulfide chemicals and additional core technologies in epoxy,
silicone and urethane based sealants, adhesives and coatings marketed into
markets, including but not limited to, aircraft, space marine, automotive,
electronics and telecommunications.

     "APG" means Automotive Performance Group, Inc. and all of its Affiliates.

     "Authority" means any governmental, regulatory or administrative body,
agency or authority, any court or judicial authority, any public, private or
industry regulatory authority, whether national, Federal, state or local or
otherwise, or any Person lawfully empowered by any of the foregoing to enforce
or seek compliance with any applicable law, statute, regulation, order or
decree.

     "Business" means the AC Tech Business and the Permatex Business.

     "Cause" means any of the following:.

          (i) Executive's conviction of, or plea of guilty or nolo contendere
     to, a serious felony or a crime involving embezzlement, conversion of
     property or moral turpitude;

          (ii) a finding by a majority of the Board of Directors, acting
     reasonably and in good faith, of Executive's fraud, embezzlement or
     conversion of property;

          (iii) Executive's conviction of, or plea of guilty or nolo contendere
     to, a crime involving the acquisition, use or expenditure of federal, state
     or local government funds;

          (iv) an administrative or judicial determination that Executive
     committed fraud or any other violation of law involving federal, state or
     local government funds;

          (v) a finding by a majority of the Board of Directors, acting
     reasonably and in good faith, of Executive's knowing breach of any of his
     fiduciary duties to any company in the Company Group or the Company's
     stockholders or making of a misrepresentation or omission which breach,
     misrepresentation or omission would reasonably be expected to materially
     adversely affect the business, properties, assets, condition (financial or
     other) or prospects of any company in the Company Group;

          (vi) Executive's willful and continual neglect or failure to discharge
     his material duties, responsibilities or obligations prescribed by this
     Agreement or any other agreement between the Executive and any company in
     the Company Group;

                                      -8-
<PAGE>   9
     provided, that the Executive has been given notice and 30 days from such
     notice fails to cure the neglect or failure;

          (vii) Executive's alcohol or substance abuse, which materially
     interferes with Executive's ability to discharge his duties,
     responsibilities and obligations prescribed by this Agreement; provided,
     that Executive has been given notice and 30 days from such notice fails to
     cure such abuse;

          (viii) except with respect to his obligations under that certain
     Services Agreement, dated November 5, 1997, between the Executive and
     Advanced Chemistry and Technology, Inc. (the "AC Tech Services Agreement"),
     any material violation, with the actual knowledge of Executive, of any
     obligations imposed upon Executive, personally, as opposed to upon the
     Company, whether as a stockholder or otherwise, under this Agreement, the
     Certificate of Incorporation or By-Laws of the Company; or

          (ix) Executive's personal (as opposed to the Company's) material and
     knowing failure, to observe or comply with Regulations whether as an
     officer, stockholder or otherwise, in any material respect or in any manner
     which would reasonably be expected to have a material adverse effect in
     respect of the Company Group's ongoing business, operations, conditions,
     other business relationships or properties.

     "Company" has the meaning set forth in the preamble.

     "Company Group" has the meaning set forth in Section 1.

     "Competitive Business" has the meaning set forth in Section 8(a)(i).

     "Confidential Information" means any confidential information including,
without limitation, any study, data, calculations, software storage media or
other compilation of information, patent, patent application, copyright,
"know-how", trade secrets, customer lists, details of client or consultant
contracts, pricing policies, operational methods, marketing plans or strategies,
product development techniques or plans, business acquisition plans or any
portion or phase of any scientific or technical information, ideas,
discoveries, designs, inventions, creative works, computer programs (including
source of object codes), processes, procedures, formulae, improvements or other
proprietary or intellectual property of the Company Group, whether or not in
written or tangible form, and whether or not registered, and including all
files, records, manuals, books, catalogues, memoranda, notes, summaries, plans,
reports, records, documents and other evidence thereof. Notwithstanding the
foregoing, the term "Confidential Information" does not include, and there
shall be no obligation hereunder with respect to, information that is or becomes
generally available to the public other than as a result of a disclosure by the
Executive not permissible hereunder.

                                      -9-
<PAGE>   10
     "Executive" means Dean Willard or his estate, if deceased.

     "knowing" and "knowledge" shall each refer to actual knowledge without any
duty of investigation.

     "Market" means any county in the United States of America or any other
country in which the Business was conducted by or engaged in by the Company
Group prior to the date hereof or is conducted or engaged in by the Company
Group at any time during the Term of Employment.

     "Permatex Business" means the development, manufacture and distribution of
functional chemical products to the automotive maintenance and repair and
consumer markets, including but not limited to anaerobic threadlockers and
liquid gaskets, silicone gasketing materials, aerosol parts cleaners, waterless
handcleaners, adhesives and a variety of "Do-It-Yourself" fix and repair
chemical products.

     "Regulations" means any laws, statutes, regulations, rulings, rules, orders
or permits of, administered or enforced by or on behalf of any Authority, and
the Certificate of Incorporation and By-laws of the Company, as applicable.

     "Restricted Period" has the meaning set forth in Section 8(a)(i).

     "Term of Employment" has the meaning set forth in Section 4(a).

     12.  Notice

     Any notice, request, demand or other communication required or permitted to
be given under this Agreement shall be given in writing and if delivered
personally, sent by certified or registered mail, return receipt requested, sent
by overnight courier or sent by facsimile transmission (with confirmation and a
copy sent by mail within one day) as follows (or to such other addressee or
address as shall be set forth in a notice given in the same manner):

     If to Executive:
                                 --------------------
                                 --------------------
                                 --------------------
                                 Facsimile No.:

     with a copy to:
                                 --------------------
                                 --------------------
                                 --------------------
                                 Attention:
                                 Facsimile No.:

                                      -10-
<PAGE>   11
     If to the Company or
     the Board of Directors:     Permatex Brands and Technologies, Inc.
                                 c/o The Jordan Company LLC7
                                 67 Fifth Avenue, 48th Floor
                                 New York, NY 10153
                                 Attention: Jonathan F. Boucher
                                 Facsimile No.: (212) 755-5263

Any such notices shall be deemed to be given on the date personally delivered or
sent by facsimile transmission or such return receipt is issued or the day after
if sent by overnight courier.

     13.  Executive's Representations

     The Executive represents, warrants and covenants to the Company that:

     (a) to the best of his knowledge and belief, and except as set forth in the
AC Tech Services Agreement, Executive is not a party to any written employment
contract or written agreement not to compete with any of his former employers,
including, but not limited to Courtaulds Aerospace plc, Products Research and
Chemical, Inc., Courtaulds plc, PRC-DeSoto International, Inc. (the "Former
Employers");

     (b) to the best of his knowledge and belief, during his tenure with his
Former Employers, the Executive did not engage directly in any activity which
would give rise to any disciplinary or other similar proceeding before any
federal or state governmental agency or self-regulatory organization, and he has
not been subject to or involved in any such proceeding and no such proceeding is
threatened;

     (c) he is knowledgeable and sophisticated as to business matters, including
the subject matter of this Agreement, and that prior to assenting to the terms
of this Agreement, or giving the representations and warranties herein, he has
been given a reasonable time to review it and has consulted with counsel of his
choice; and

     (d) he will not knowingly breach or violate any provision of any
Regulations in any material respect or in any manner which might reasonably have
a material adverse effect in respect of the ongoing business, operations,
conditions, or other business relationships or properties of any of the
companies in the Company Group.

     14.  Company's Obligation; Taxes

     Executive agrees and acknowledges that the obligations owed to Executive
under this Agreement are solely the obligations of the Company, and that none of
the Company's stockholders, directors, officers or lenders will have any
obligations or liabilities in respect

                                      -11-
<PAGE>   12
of this Agreement and the subject matter hereof. Any amounts payable to the
Executive pursuant to this Agreement shall be subject to withholding and any
other applicable taxes.

     15.  Validity

     If, for any reason, any provision hereof shall be determined to be invalid
or unenforceable, the validity and effect of the other provisions hereof shall
not be affected thereby.

     16.  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. If any court determines that any
provision of Section 7, 8, 9, 10 or any other provision hereof is unenforceable
and therefore acts to reduce the scope or duration of such provision, the
provision in its reduced form, shall then be enforceable.

     17.  Survival; Right to Withhold Payments

     The terms of Sections 7, 8, 9 and 10 shall survive the termination of this
Agreement regardless of who terminates this Agreement, or the reasons therefor.
Upon the determination of a majority of the Board of Directors that the
Executive has breached his obligations in any material respect under Section 7,
8, 9 or 10, the Company, in addition to pursuing all available remedies under
this Agreement, at law or otherwise, and without limiting its right to pursue
the same, shall cease all payments to the Executive under this Agreement.

     18.  Waiver of Breach; Specific Performance

     The waiver by the Company or Executive of a breach of any provision of this
Agreement by the other party shall not operate or be construed as a waiver of
any other breach of such other party. Each of the parties (and third party
beneficiaries) to this Agreement will be entitled to enforce its rights under
this breach of any provision of this Agreement and to exercise all other rights
existing in its favor. The parties hereto agree and acknowledge that the Company
would be irreparably injured by a violation of Section 7, 8, 9 or 10 of this
Agreement, that the provisions of such sections are reasonable and that the
Company could not adequately be compensated in monetary damages, in light of the
sensitivity of the non-public information of the Company to which the Executive
will be exposed and that any party (and third party beneficiaries) may in its
sole discretion apply to any court of law or equity of competent jurisdiction
for specific performance and/or injunctive relief, including temporary
restraining orders, preliminary injunctions and

                                      -12-
<PAGE>   13
permanent injunctions in order to enforce or prevent any violations of the
provisions of such sections of this Agreement. In the event either party takes
legal action to enforce any of the terms or provisions of this Agreement, the
nonprevailing party shall pay the successful party's costs and expenses,
including but not limited to, reasonable attorneys' fees, incurred in such
action.

     19.  Assignment; Third Parties

     Neither the Executive nor the Company may assign, transfer, pledge,
hypothecate, encumber or otherwise dispose of this Agreement or any of his or
its respective rights or obligations hereunder, without the prior written
consent of the other. The parties agree and acknowledge that each of the
Companies and the stockholders of, lenders to and investors therein are intended
to be third party beneficiaries of, and have rights and interests in respect of,
Executive's agreements set forth in Sections 7, 8, 9 and 10.

     20.  Amendment; Entire Agreement

     This Agreement may not be changed orally but only by an agreement in
writing agreed to by the party against whom enforcement of any waiver, change,
modification, extension or discharge is sought. This Agreement constitutes the
entire agreement between the parties concerning the subject matter hereof and
supersedes all prior and contemporaneous agreements, if any, between the parties
relating to the subject matter hereof. The enforceability of this Agreement
shall not cease or otherwise be adversely affected by the termination of the
Executive's employment with the Company. The Executive and the Company agree
that the language used in this Agreement is the language chosen by the parties
to express their mutual intent, and that no rule of strict construction is to be
applied against any party hereto.

     21.  Litigation

     (a) THIS AGREEMENT SHALL BE GOVERNED BY, CONSTRUED, APPLIED AND ENFORCED IN
ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF NEW YORK. EACH OF THE PARTIES
HERETO ACKNOWLEDGES AND AGREES THAT IN THE EVENT OF ANY BREACH OF THIS
AGREEMENT, THE NON-BREACHING PARTY WOULD BE IRREPARABLY HARMED AND COULD NOT BE
MADE WHOLE BY MONETARY DAMAGES, AND THAT, IN ADDITION TO ANY OTHER REMEDY TO
WHICH THEY MAY BE ENTITLED AT LAW OR IN EQUITY, THE PARTIES SHALL BE ENTITLED TO
SUCH EQUITABLE OR INJUNCTIVE RELIEF AS MAY BE APPROPRIATE. THE CHOICE OF FORUM
SET FORTH IN THIS SECTION 21 SHALL NOT BE DEEMED TO PRECLUDE THE ENFORCEMENT OF
ANY JUDGMENT OF A NEW YORK FEDERAL OR STATE COURT, OR THE TAKING OF ANY ACTION
UNDER THIS AGREEMENT TO ENFORCE SUCH A JUDGMENT, IN ANY OTHER APPROPRIATE
JURISDICTION.

                                      -13-
<PAGE>   14
     (b) IN THE EVENT ANY PARTY TO THIS AGREEMENT COMMENCES ANY LITIGATION,
PROCEEDING OR OTHER LEGAL ACTION IN CONNECTION WITH OR RELATING TO THIS
AGREEMENT, ANY RELATED AGREEMENT OR ANY MATTERS DESCRIBED OR CONTEMPLATED HEREIN
OR THEREIN, THE PARTIES TO THIS AGREEMENT HEREBY (1) AGREE UNDER ALL
CIRCUMSTANCES ABSOLUTELY AND IRREVOCABLY TO INSTITUTE ANY LITIGATION, PROCEEDING
OR OTHER LEGAL ACTION IN A COURT OF COMPETENT JURISDICTION LOCATED WITHIN THE
SOUTHERN DISTRICT OF NEW YORK, WHETHER A STATE OR FEDERAL COURT; (2) AGREE THAT
IN THE EVENT OF ANY SUCH LITIGATION, PROCEEDING OR ACTION, SUCH PARTIES WILL
CONSENT AND SUBMIT TO THE PERSONAL JURISDICTION OF ANY SUCH COURT DESCRIBED IN
CLAUSE (1) OF THIS SECTION AND TO SERVICE OF PROCESS UPON THEM IN ACCORDANCE
WITH THE RULES AND STATUTES GOVERNING SERVICE OF PROCESS (IT BEING UNDERSTOOD
THAT NOTHING IN THIS SECTION SHALL BE DEEMED TO PREVENT ANY PARTY FROM SEEKING
TO REMOVE ANY ACTION TO A FEDERAL COURT IN THE SOUTHERN DISTRICT OF NEW YORK;
(3) AGREE TO WAIVE TO THE FULL EXTENT PERMITTED BY LAW ANY OBJECTION THAT THEY
MAY NOW OR HEREAFTER HAVE TO THE VENUE OF ANY SUCH LITIGATION, PROCEEDING OR
ACTION IN ANY SUCH COURT OR THAT ANY SUCH LITIGATION, PROCEEDING OR ACTION WAS
BROUGHT IN ANY INCONVENIENT FORUM; (4) AGREE, AFTER CONSULTATION WITH COUNSEL,
TO WAIVE ANY RIGHTS TO A JURY TRIAL TO RESOLVE ANY DISPUTES OR CLAIMS RELATING
TO THIS AGREEMENT; (5) AGREE TO DESIGNATE, APPOINT AND DIRECT AN AUTHORIZED
AGENT TO RECEIVE ON ITS BEHALF SERVICE OF ANY AND ALL PROCESS AND DOCUMENTS IN
ANY LEGAL PROCEEDING IN THE SOUTHERN DISTRICT OF NEW YORK; (6) AGREE TO PROVIDE
THE OTHER PARTIES TO THIS AGREEMENT WITH THE NAME, ADDRESS AND FACSIMILE NUMBER
OF SUCH AGENT; (7) AGREE AS AN ALTERNATIVE METHOD OF SERVICE TO SERVICE OF
PROCESS IN ANY LEGAL PROCEEDING BY MAILING OF COPIES THEREOF TO SUCH PARTY AT
ITS ADDRESS SET FORTH HEREIN FOR COMMUNICATIONS TO SUCH PARTY; (8) AGREE THAT
ANY SERVICE MADE AS PROVIDED HEREIN SHALL BE EFFECTIVE AND BINDING SERVICE IN
EVERY RESPECT; AND (9 ) AGREE THAT NOTHING HEREIN SHALL AFFECT THE RIGHTS OF ANY
PARTY TO EFFECT SERVICE OF PROCESS IN ANY OTHER MANNER PERMITTED BY LAW. TO THE
EXTENT PERMITTED BY LAW IN CONNECTION WITH OR RELATING TO THIS AGREEMENT, ANY
RELATED AGREEMENT OR ANY MATTERS DESCRIBED OR CONTEMPLATED HEREIN OR THEREIN,
AND AGREE TO TAKE ANY AND ALL ACTION NECESSARY OR APPROPRIATE TO EFFECT SUCH
WAIVER.

     22.  Further Action

     Executive and the Company agree to perform any further acts and to execute
and deliver any documents which may be reasonable to carry out the provisions
hereof.

                                      -14-
<PAGE>   15
     23.  Headings

     The headings contained in this Agreement are for convenience only and shall
not affect in any way the meaning or interpretation of this Agreement.

     24.  Counterparts

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

                                  [End of page]

                                      -15-
<PAGE>   16
     IN WITNESS WHEREOF, the parties hereto have set their hands as of the day
and year first written above.

                                       EXECUTIVE:

                                       /s/ Dean Willard
                                       ------------------------------
                                       Name:  Dean Willard

                                       PBT BRANDS, INC.

                                       By: /s/ Douglas Zych
                                           --------------------------
                                           Name: Douglas Zych
                                           Title: Vice President

                                      -16-
<PAGE>   17
                                  Schedule 1

                  [Additional Companies in the Company Group]

Permatex Acquisition Corp.
Permatex, Inc.
Advanced Chemistry and Technology, Inc.

                                      -17-

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