Summary of Oral Capital Contribution Agreement Between Zapata Corporation and Safety Components International, Inc.
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Summary
Zapata Corporation has agreed to make a $1,000,000 capital contribution to Safety Components International, Inc. to encourage its management to remain employed until the sale of Zapata's shares in Safety Components to WLR Recovery Funds is completed. The payment will be distributed as bonuses to key executives and employees, provided the sale is finalized and management stays through the closing. There is currently no written agreement for this contribution, and payment is contingent on these conditions being met.
EX-10.3 4 y14774exv10w3.txt SUMMARY OF AGREEMENT EXHIBIT 10.3 SUMMARY OF ORAL AGREEMENT WITH SAFETY COMPONENTS INTERNATIONAL, INC. Zapata Corporation, Inc. agreed with Safety Components International, Inc. ("Safety Components") to make a capital contribution in the amount of $1,000,000 as an inducement for Safety Components' management to continue employment through the completion of the proposed sale of Zapata's 4,162,394 shares of common stock in Safety Components to the WLR Recovery Fund II, L.P and WLR Recovery Fund III, L.P. (collectively, the "WLR Recovery Funds") pursuant to a stock purchase agreement dated September 23, 2005, as amended. At this time there is no written agreement between the parties with respect to the capital contribution to Safety Components. The $1,000,000 capital contribution would be made directly to Safety Components and, thereafter, would be distributed by the Safety Components compensation committee as bonuses to certain executive officers and key employees. The obligation to make payment of the capital contribution to Safety Components is subject to the satisfactory completion of certain conditions, including that the transactions contemplated in the stock purchase agreement be consummated and that the Chief Executive Officer, President and Vice President-Finance and the other management members of Safety Components remain in the employ of Safety Components through the closing of the transactions contemplated by the stock purchase agreement.
