Document:

Karl G. Glassman Employment Agreement

 Exhibit 10.3 
 EMPLOYMENT AGREEMENT 
 BETWEEN 
 KARL G. GLASSMAN AND 
 LEGGETT & PLATT, INCORPORATED 

 

							
	 1.
	  	Employment	  	1
			
	 2.
	  	Term	  	1
		  	2.1	  	Term	  	1
		  	2.2	  	Early Termination	  	1
			
	 3.
	  	Duties and Authority	  	2
			
	 4.
	  	Compensation	  	2
		  	4.1	  	Base Salary	  	2
		  	4.2	  	Annual Cash Bonus	  	3
		  	4.3	  	Vacations; Other Benefits	  	3
			
	 5.
	  	Expenses	  	4
			
	 6.
	  	Disability	  	4
		  	6.1	  	Definition of “Total Disability”	  	4
		  	6.2	  	Offset Payments	  	4
			
	 7.
	  	Executive’s Option to Terminate Agreement	  	4
			
	 8.
	  	Termination by the Company	  	5
		  	8.1	  	Termination For Cause	  	5
		  	8.2	  	Termination Without Cause	  	6
			
	 9.
	  	Confidential Information	  	6
			
	 10.
	  	Non-Compete	  	6
			
	 11.
	  	Nonassignability	  	7
			
	 12.
	  	Miscellaneous	  	7
		  	12.1	  	Waivers	  	7
		  	12.2	  	Notices	  	7
		  	12.3	  	Survival of Provisions	  	8

 EMPLOYMENT AGREEMENT 
 This Employment Agreement (the “Agreement”) is made as of May 10, 2006 between Leggett & Platt, Incorporated, a Missouri corporation (the “Company”), and Karl G.
Glassman (the “Executive”). 
 RECITALS 
 The Company desires that the Executive remain in the employment of the Company. The Board of Directors (the “Board”) at its meeting
earlier today elected Executive as the Chief Operating Officer of the Company. Accordingly, the Compensation Committee (the “Compensation Committee”) of the Board has recommended the execution of this Agreement and the Board has
authorized the execution of the same. This Agreement supercedes the Employment Agreement between the Company and the Executive dated November 1, 2005. 
 AGREEMENT 
 NOW THEREFORE, for good and valuable consideration, the Company and the Executive agree as
follows: 
 1. Employment 
 The Company hereby confirms its employment of the Executive as its Chief Operating Officer and Executive Vice President, and the Executive hereby confirms his employment in that capacity. Executive will also serve the Company in such other
executive capacities, at the Executive Vice President level or above, as may be determined by the Board from time to time. 
 The
Executive’s employment under this Agreement is subject to the terms and conditions set out below and will be carried out in Carthage, Missouri, at the Company’s principal executive offices. However, the Executive acknowledges that the
nature of his employment may require reasonable domestic and international travel from time to time. 
 2. Term 
 2.1 Term 
 The term of this
Agreement shall commence on May 10, 2006 and shall end on the date of the Annual Meeting of Shareholders in 2009, unless terminated earlier in accordance with the provisions of this Agreement. 
 2.2 Early Termination 
 The
term of this Agreement may be terminated prior to expiration by reason of any of the following: 
  

	 	(a)	by the Executive upon six months prior written notice; 

  

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	 	(b)	in accordance with the Severance Benefit Agreement dated as of May 10, 2006, as amended from time to time (the “Severance Benefit Agreement”), a copy of which is
attached as Exhibit A for information purposes only; 

  

	 	(c)	in accordance with Section 6 hereof, upon the Executive’s Total Disability (as defined below); 

  

	 	(d)	by the Executive pursuant to Section 7 hereof; 

  

	 	(e)	by the Company pursuant to Section 8 hereof; or 

  

	 	(f)	for other causes as provided elsewhere in this Agreement. 

 3. Duties and Authority 
 The Executive shall devote his full business time to the affairs of the Company. However,
this shall not be deemed to prevent the Executive from devoting such time (which shall not be substantial in the aggregate) to personal business interests that do not unreasonably interfere with the performance of the Executive’s duties
hereunder. 
 The Executive shall use his best efforts, skills and abilities to promote the Company’s interests. The Executive shall
serve as director if nominated by the Nominating & Corporate Governance Committee (“N&CG Committee”) and if so elected by the shareholders of the Company; provided, however, the N&CG Committee may decide not to
nominate the Executive if (i) such nomination would violate the rules or regulations of the Securities and Exchange Commission or the New York Stock Exchange, or (ii) for good corporate governance reasons the N&CG Committee and the
Board believe there is a need to reduce the number of inside directors serving on the Board. The Executive shall perform such duties at the Executive Vice President level or above assigned to him by the Board, the Chief Executive Officer, or the
President. The Executive shall report to the Chief Executive Officer of the Company. 
 4. Compensation 
 4.1 Base Salary 
 The Executive
shall be paid a base salary at an annual rate of $620,000. Beginning on or about April 1, 2007 and April 1 of each successive year during the term of this Agreement, the Compensation Committee shall appraise the Executive’s
performance during the previous calendar year, taking into account such factors as it deems appropriate. As a result of such appraisal, the then annual base salary of the Executive may be increased (but shall not be decreased) by such amount as the
Compensation Committee determines is fair, just and equitable. 
 The Executive’s base salary shall be paid in equal bi-weekly
installments. 
 All salary increases under this section will be made as of the beginning of the first payroll period in which the
Company’s other salaried employees generally receive merit related annual salary adjustments. 
  

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 4.2 Annual Cash Bonus 
 During the term of this Agreement, the Executive shall be entitled to earn a cash bonus computed in accordance with the Key Officers Incentive Plan, as
amended from time to time (the “Incentive Plan”). The amount of the Executive’s bonus shall be determined by applying a bonus formula approved by the Compensation Committee to a percentage of Executive’s annual salary on
December 31 of each year (“target percentage”). The Executive’s target percentage is 60%. The Compensation Committee shall be entitled to amend or supplement the guidelines from time to time whenever the Committee deems
this to be in the best interests of the shareholders of the Company. 
 If the Executive’s employment under this Agreement is terminated
before December 31 of any year, the Executive shall receive a prorated bonus for the year of termination. This prorated bonus shall bear the same ratio to the actual bonus the Executive would have earned with respect to the year under the
Incentive Plan as the number of days this Agreement is in force during such year bears to 365. 
 4.3 Vacations; Other Benefits

 The Executive shall be entitled to a reasonable annual vacation (not less than an aggregate of four weeks in any calendar year) with full
pay, benefits and allowances. 
 In addition to the salary, bonus and other payments to be made under this Agreement, the Executive shall be
entitled to participate (to the extent legally permitted) in any insurance, pension, profit sharing, stock bonus, stock option, stock purchase or other benefit plan of the Company now existing or hereafter adopted for the benefit of executive
officers of the Company or the employees of the Company generally. 
 At the Company’s expense, the Company shall provide office space,
secretarial assistance, supplies and equipment fully adequate to enable the Executive to perform the services contemplated by this Agreement and at least comparable to that being provided to the Executive on the date hereof. 
 The Company shall provide the Executive with appropriate perquisites at least equal to such perquisites as are generally made available from time to time
to the Company’s other senior executive officers. 
 In addition to the payments provided for in this Section 4 and elsewhere in
this Agreement, the Company may from time to time pay the Executive as a salary increase, a bonus or otherwise, such additional amounts as the Compensation Committee shall, in its discretion, determine. 
 Except as may be provided otherwise in this Agreement or to the extent required by law, no benefits referred to in this section or provided for in other
sections of this Agreement shall be reduced by the Company as to the Executive without first securing his consent. 
  

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 5. Expenses 
 The Company shall pay or reimburse the Executive for all transportation, hotel, living and related expenses incurred by the Executive on business trips away from the Company’s principal office and for all other
business and entertainment expenses reasonably incurred by him in connection with the business of the Company and its subsidiaries or affiliates. 
 6. Disability 
 6.1 Definition of “Total Disability” 
 The Executive shall be deemed to have a “Total Disability” if he is unable, for a continuous period of four or more months, to perform
substantially all of the material personal services to be rendered by him under this Agreement. During the continuance of any Total Disability, the Company shall continue to provide the Executive’s cash compensation and other benefits under
this Agreement until 14 months from the first day of the period that culminated in the Total Disability (“Disability Termination Date”). If Executive continues to have a Total Disability on the Disability Termination Date, his employment
under this Agreement shall be terminated. 
 6.2 Offset Payments 
 The Company’s obligation to continue the Executive’s cash compensation from the date of a Total Disability to the Disability Termination Date
shall be reduced by (a) all amounts paid to Executive under disability income insurance policies made available to the Executive by the Company and (b) by all amounts received by the Executive from Social Security disability benefits.

 7. Executive’s Option to Terminate Agreement 
 Not later than six months after the occurrence of any of the following events the Executive may elect to terminate his employment under this Agreement by
sending notice of termination to the Company: 
  

	 	(a)	The Executive shall not be elected and continue as director of the Company, unless his failure to serve on the Board resulted from the application of Section 3 of this
Agreement; 

  

	 	(b)	The Company is merged or consolidated with another corporation and the Company is not the survivor; 

  

	 	(c)	The Company is dissolved; 

  

	 	(d)	Substantially all of the assets of the Company are sold to any other person; 

  

	 	(e)	A public tender offer is made for the shares of the Company and the offeror acquires at least 40% of the outstanding common shares of the Company; 

  

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	 	(f)	A proxy contest is waged and the person waging the contest acquires working control of the Company; or 

  

	 	(g)	The Executive does not receive a salary increase for any year, unless the failure to receive a salary increase is due to a company-wide salary freeze applicable for such year.

 The Executive’s employment obligations under this Agreement shall terminate on the date of termination specified in the
Executive’s notice to the Company, which date must be within 60 days of the date of the notice. 
 8. Termination by the
Company 
 8.1 Termination For Cause 
 The Company may terminate the Executive’s employment pursuant to this Agreement by discharging the Executive for cause. The term “for cause” shall be limited to the following events: 

 

	 	(a)	The Executive’s conviction of any crime involving money or other property of the Company or any of its affiliates (including entering into any plea bargain admitting criminal
guilt) or of any other crime (whether or not involving the Company or any of its affiliates) that constitutes a felony in the jurisdiction involved; or 

  

	 	(b)	The Executive’s willful breach of the Company’s Code of Business Conduct (or any successor policy) which causes material injury to the Company; or

  

	 	(c)	The Executive’s willful act or omission involving fraud, misappropriation, or dishonesty that (i) causes material injury to the Company or (ii) results in a material
personal enrichment to the Executive at the expense of the Company; or 

  

	 	(d)	The Executive’s willful violation of specific written directions of the Company’s Board or the Chief Executive Officer which directions are consistent with this Agreement
and the Executive’s duties, and provided that such violation continues following the Executive’s receipt of written notice by the Board or the Company’s Chief Executive Officer specifying the specific acts or omissions alleged to
constitute such violation and such violation continues after affording the Executive reasonable opportunity to remedy such failure after receipt of such notice; or 

  

	 	(e)	The Executive’s continuing, repeated, willful failure to substantially perform his duties hereunder; provided, however, that no discharge shall be deemed for cause under this
subsection (e) unless the Executive first receives written notice from the Board advising the Executive of the specific acts or omissions alleged to constitute a failure to perform his duties, and such failure continues after the Executive
shall have had a reasonable opportunity to correct the acts or omissions so complained of. 

  

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 8.2 Termination Without Cause 
 The Board, at any time and without cause, may relieve the Executive of his duties under this Agreement upon prior written notice to the Executive;
provided that such action by the Board shall not relieve the Company of any of its financial obligations to the Executive as set forth in this Agreement. If the Executive is terminated without cause, he shall continue to receive the salary, bonus
and other benefits provided for in this Agreement as though his employment had not been terminated. Notwithstanding the foregoing, if the Executive’s employment is terminated without cause, the Company shall be relieved of any further financial
obligations under this Agreement to the Executive or his estate that accrue after his death or after his Disability Termination Date (as defined in Section 6.1). 
 9. Confidential Information 
 The Executive shall not at any time (whether during the term of
this Agreement or thereafter) disclose to any person any confidential information or trade secrets of the Company. 
 If any of the
restrictions contained in this section or elsewhere in this Agreement shall be deemed unenforceable then the Executive and the Company contemplate that the appropriate court will enforce such restrictions in their reduced form. 
 10. Non-Compete 
 For two years
after termination of employment with the Company (the “Noncompete Period”), the Employee will not (either individually or through any entity in which he may be an employee, agent, consultant, director, shareholder, partner or
otherwise affiliated), in any part of the Territory (i) engage in any Competitive Activities, (ii) design, develop, manufacture, assemble, process distribute, market or sell any Covered Products, (iii) solicit orders from or seek to
do business with any customer of the Company relating to Covered Products or Competitive Activities, or (iv) influence or attempt to influence any employee, representative or advisor of the Company to terminate their employment or relationship
with the Company. 
 “Territory” means all of the United States and all other parts of the world to which the Company has
sold any Covered Products. “Competitive Activities” means any manufacture, sale, distribution, engineering, design, promotion or other activity which competes with the business of the Company as conducted prior to the date hereof.
“Covered Products” means any product which is of the type of, or which is competitive with or a substitute for, the products manufactured, assembled, distributed, marketed, sold or under development by the Company. 
 Company’s subsidiaries and affiliates (i) are third party beneficiaries of this Section, (ii) shall have all rights and remedies allowed
in law or equity (including injunctive relief) to prevent further violations, and (iii) may also seek damages resulting from any violation. If this Section is found to be unenforceable, then the appropriate court may reform this Section so the
restrictions are reasonable and enforceable. 
  

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 During the Noncompete Period, the Company will provide health and medical insurance to Executive and his
dependents that is at least equal to the insurance provided before termination of employment; provided, however, if Executive obtains less favorable insurance during the Noncompete Period through a subsequent employer, the Company will compensate
Executive for any shortfall in coverage. 
 This Section 10 shall not apply if the Company terminates the Executive’s employment
without cause. 
 11. Nonassignability 
 This Agreement and the benefits hereunder are personal to the Company and are not assignable by it; provided, however, this Agreement and the benefits hereunder may be assigned by the Company to any person acquiring
all or substantially all of the assets of the Company or to any corporation into which the Company may be merged or consolidated. In the event of an assignment of this Agreement to any person acquiring all or substantially all of the assets of the
Company or to any corporation into which the Company may be merged or consolidated, the title, responsibilities and duties assigned to the Executive by such successor person or corporation shall be the title, responsibilities and duties of a senior
executive officer of such successor person or corporation. 
 The provisions of this Agreement shall be binding on and inure to the benefit
of the Executive, his assignees, executors, and administrators. 
 12. Miscellaneous 
 12.1 Waivers 
 No waiver by
either party of any breach or nonperformance of any provision of this Agreement shall be deemed to be a waiver of any preceding or succeeding breach or nonperformance of the same or any other provision hereof. 
 12.2 Notices 
 All notices,
waivers, designations or other communications (collectively “notices”) that either party is required or permitted to give hereunder shall be in writing and delivered as follows: 
  

			
	If to the Executive:	 	If to the Company:
		
	Karl G. Glassman	 	Leggett & Platt, Incorporated
	9732 Early Lane	 	No. 1 Leggett Road
	Carthage, Missouri 64836	 	Carthage, Missouri 64836
		 	Attention: Secretary

 subject to the right of either party at any time to designate a different location for the delivery of notices.

  

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 12.3 Survival of Provisions 
 Section 9 shall survive the expiration or termination of this Agreement, as shall all other provisions hereof which provide for or contemplate
performance by either the Executive or the Company following the termination hereof. 
 IN WITNESS WHEREOF, the Company and the Executive
have signed this Agreement as of the day and year first above written. 
  

					
	“EXECUTIVE”	    	“COMPANY”
		
		    	LEGGETT & PLATT, INCORPORATED
			
	 /s/ Karl G. Glassman
  
	    	By	 	 /s/ David S. Haffner
  

	Karl G. Glassman	    		 	David S. Haffner
		    		 	Chief Executive Officer and President

  

 8Karl G. Glassman Severance Benefit Agreement

 Exhibit 10.4 
 SEVERANCE BENEFIT AGREEMENT 
 This Severance Benefit Agreement (the “Agreement”) is
made as of May 10, 2006 between Leggett & Platt, Incorporated, No. 1 Leggett Road, Carthage, Missouri 64836 (the “Company”) and Karl G. Glassman (the “Executive”), residing at 9732 Early Lane,
Carthage, Missouri 64836. 
 RECITALS 
 The Executive functions as the Chief Operating Officer and Executive Vice President of the Company on the date hereof and is one of the key employees of the Company. 
 The Company considers the maintenance of sound and vital management essential to protecting and enhancing the best interests of the Company and its
shareholders. In this connection, the Company recognizes that in today’s business environment the possibility of a change in control of the Company may exist in the future. The Company further recognizes that such possibility, and the
uncertainty which it may raise among key executives, could result in the departure or distraction of key executives to the detriment of the Company and its shareholders. Accordingly, the Board of Directors of the Company (the
“Board”) has determined that appropriate steps should be taken (i) to further induce the Executive to remain with the Company and (ii) to reinforce and encourage the continued attention and dedication of the Executive to
his assigned duties without distraction in the face of potentially disturbing circumstances arising from the possibility of a change in control of the Company. This Agreement supersedes the Severance Benefit Agreement between the Company and the
Executive dated November 1, 2005. 
 NOW, THEREFORE, in consideration of the premises and for other good and valuable considerations,
the receipt of which are hereby acknowledged, the Company and the Executive agree as follows: 
 1. Change in Control; Employment Agreement

 1.1 Change in Control. The Company may be required to provide certain benefits to the Executive under this Agreement
following each and every “Change in Control” of the Company. 
 A “Change in Control” of the Company shall
be deemed to have occurred if: 
  

	 	(a)	There is any change in control as contemplated by (i) Item 6(e) of Schedule 14A, Regulation 14A, promulgated under the Securities Exchange Act of 1934, as amended (the
“Exchange Act”) or (ii) Item 5.01 of Form 8-K promulgated by the Securities and Exchange Commission under the Exchange Act; or 

  

	 	(b)	Any “person” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act) is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the
Exchange Act), directly or indirectly, of 25% or more of the combined voting power of the Company’s then outstanding voting securities; or 

  

 1 

	 	(c)	Those persons serving as directors of the Company on the date of this Agreement (the “Original Directors”) and/or their Successors do not constitute a majority of
the whole Board of Directors of the Company (the term “Successors” shall mean those directors whose election or nomination for election by the Company’s shareholders has been approved by the vote of at least two-thirds of the
Original Directors and previously qualified Successors serving as directors of the Company at the time of such election or nomination for election); or 

  

	 	(d)	The Company shall be a party to a merger or consolidation with another corporation and as a result of such merger or consolidation, less than 75% of the outstanding voting
securities of the surviving or resulting corporation shall be owned in the aggregate by the former shareholders of the Company as the same shall have existed immediately prior to such merger or consolidation; or 

  

	 	(e)	The Company liquidates, sells, or otherwise transfers all or substantially all of its assets to a person not controlled by the Company both immediately prior to and immediately
after such sale. 

 1.2 Employment Agreement. Any benefits provided to the Executive under this Agreement will,
unless specifically stated otherwise in this Agreement, be in addition to and not in lieu of any benefits that may be provided the Executive under his Employment Agreement with the Company dated May 10, 2006 (this agreement, as amended,
restated or superseded, is called the “Employment Agreement”). 
 This Agreement shall continue for the term provided in
Section 8.6 and shall not be affected by any termination of the Employment Agreement. 
 2. Termination of Employment Following a Change in
Control 
 2.1 General. During the 30 month period immediately following each and every Change in Control (the
“Protected Period”), the Executive and the Company shall comply with all provisions of this Section 2 regarding termination of the Executive’s employment. 
 2.2 Termination for Disability. If the Employment Agreement is not in force, the Company may terminate the Executive’s employment for
Disability. If the Employment Agreement is in force, the Company may terminate the Executive’s employment for disability only in accordance with the terms of the Employment Agreement. “Disability” as used in this Agreement, as
distinguished from the Employment Agreement, shall mean the Executive’s absence from, and his inability to substantially perform, his duties with the Company for a continuous period of six or more months as a result of physical causes or mental
illness. During any period prior to the termination of his employment that the Executive is absent from, and is unable to substantially perform, his duties with the Company as a result of physical causes or mental illness, the Company shall continue
to pay the Executive his full base salary at the rate then in effect and any bonuses earned by the Executive under Company bonus plans until such 

  

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time as the Executive’s employment is terminated by the Company for Disability. Following termination of employment under this Section 2.2, the
Executive’s benefits shall be determined in accordance with the Company’s long term disability program as in effect on the date hereof, or any successor program then in effect. 
 2.3 Termination by Company for “Cause”. If the Employment Agreement is not in force, the Company may terminate the Executive for
Cause as defined in this Agreement. If the Employment Agreement is in force, the Company may terminate the Executive for cause only in accordance with the terms of the Employment Agreement. 
 Termination for “Cause” under this Agreement, as distinguished from the Employment Agreement, shall be limited to the following: 
  

	 	(a)	The Executive’s conviction of any crime involving money or other property of the Company or any of its affiliates (including entering any plea bargain admitting criminal
guilt), or a conviction of any other crime (whether or not involving the Company or any of its affiliates) that constitutes a felony in the jurisdiction involved; or 

  

	 	(b)	The Executive’s willful breach of the Company’s Code of Business Conduct (or any successor policy) which causes material injury to the Company; or

  

	 	(c)	The Executive’s willful act or omission involving fraud, misappropriation, or dishonesty that (i) causes material injury to the Company or (ii) results in a material
personal enrichment to the Executive at the expense of the Company; or 

  

	 	(d)	The Executive’s willful violation of specific written directions of the Board or the Company’s Chief Executive Officer provided that such directions are consistent with
this Agreement and the Executive’s duties and do not constitute Company Action as defined in Section 2.4, and provided that such violation continues following the Executive’s receipt of written notice by the Board or the
Company’s Chief Executive Officer specifying the specific acts or omissions alleged to constitute such violation and such violation continues after affording the Executive reasonable opportunity to remedy such failure after receipt of such
notice; or 

  

	 	(e)	The Executive’s continued, repeated, willful failure to substantially perform his duties; provided, however, that no discharge shall be deemed for Cause under this subsection
(e) unless the Executive first receives written notice from the Board or the Company’s Chief Executive Officer advising the Executive of specific acts or omissions alleged to constitute a failure to perform his duties, and such failure
continues after the Executive has had a reasonable opportunity to correct the acts or omissions so complained of. 

  

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 No act or failure to act on the Executive’s part shall be considered “willful”
unless done, or omitted to be done, by the Executive in bad faith and without reasonable belief that his action or omission was in the best interest of the Company. Moreover, the Executive shall not be terminated for Cause unless and until there
shall have been delivered to the Executive a notice of termination duly adopted by the affirmative vote of at least a majority of the directors of the Board at a meeting of the Board (after reasonable notice to the Executive and an opportunity for
the Executive, together with his counsel, to be heard before the Board), finding that in the good faith opinion of the Board the Executive was guilty of the conduct set forth in Section 2.3(a), (b), (c), (d) or (e) and specifying the
particulars thereof in detail. 
 A termination shall not be deemed for Cause if, for example, the termination results from the
Company’s determination that the Executive’s position is redundant or unnecessary or that the Executive’s performance is unsatisfactory or if the termination stems from the Executive’s refusal to agree to or accept any Company
Action described in Section 2.4. 
 2.4 Termination by Executive for Good Reason. The Executive may, whether or not his
Employment Agreement remains in force, terminate his employment for “Good Reason” by giving notice of termination to the Company following (i) any action or omission by the Company described in this Section 2.4 or
(ii) receipt of notice from the Company of the Company’s intention to take any such action or engage in any such omission. A termination of employment under this Section 2.4 shall be deemed a valid and proper termination of the
Employment Agreement if then in force and, to this extent, the parties agree that the Employment Agreement is hereby amended. 
 The actions
or omissions which may lead to a termination of employment for Good Reason (herein collectively and severally “Company Actions”) are as follows: 
  

	 	(a)	A reduction by the Company in the Executive’s base salary as in effect immediately prior to the Change in Control or a failure by the Company to increase the Executive’s
base salary each year during the Protected Period by an amount which at least equals, on a percentage basis, the annual increase in the Consumer Price Index for Urban Workers (CPI-U) for the applicable year; or 

  

	 	(b)	A change in the Executive’s reporting responsibilities, titles or offices as in effect immediately prior to a Change in Control that results in a material diminution within the
Company of title, status, authority or responsibility; or 

  

	 	(c)	The assignment to the Executive of any positions, duties or responsibilities inconsistent with the Executive’s positions, duties and responsibilities with the Company
immediately prior to the Change in Control or an expansion of such duties and responsibilities without the Executive’s written consent; or 

  

	 	(d)	A failure by the Company, without providing substantially similar economic benefits, to (i) continue any cash bonus or other incentive plans substantially in the forms in
effect immediately prior to the Change in Control, or (ii) continue the Executive as a participant in such plans on at least the same basis as the Executive participated in accordance with the plans immediately prior to the Change in Control;
or 

  

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	 	(e)	A requirement by the Company that the Executive be based or perform his duties anywhere other than at the Company’s Corporate Office location immediately prior to the Change in
Control, except for required travel on the Company’s business to an extent substantially consistent with the Executive’s business travel obligations immediately prior to the Change in Control or, if the Executive consents in writing to any
relocation, the failure by the Company to pay (or reimburse the Executive for) all reasonable expenses incurred by him relating to a change of his principal residence in connection with such relocation and to indemnify the Executive against any loss
realized on the sale of his principal residence in connection with any such change of residence (loss is defined as the difference between the actual sale price of such residence and the higher of (i) the aggregate investment in such residence
(including improvements thereto) or (ii) the fair market value of such as determined by a real estate appraiser designated by the Executive and reasonably satisfactory to the Company); or 

  

	 	(f)	A failure by the Company to continue in effect any benefit or other compensation plan (e.g., stock ownership plan, stock purchase plan, stock option plan, life insurance
plan, health and accident plan or disability plan) in which the Executive is participating at the time of a Change in Control (or plans providing the Executive with substantially similar economic benefits), or the taking of any action which would
adversely affect the Executive’s participation in or materially reduce the Executive’s benefits under any of such plans; or 

  

	 	(g)	The Company’s failure to provide the Executive with the number of paid vacation days to which he is entitled in accordance with the Company’s normal vacation practices
with respect to the Executive at the time of the Change in Control; or 

  

	 	(h)	A failure by the Company to obtain the assumption agreement to perform this Agreement by any successor as contemplated by Section 7 of this Agreement; or

  

	 	(i)	Any purported termination of the Executive’s employment for Disability or for Cause that is not carried out (i) pursuant to a notice of termination which satisfies the
requirements of Section 2.5 or (ii) in accordance with Section 2.3, if applicable; and for purposes of this Agreement, no such purported termination shall be effective. 

 2.5 Notice of Termination. Any purported termination by the Company of the Executive’s employment under Section 2.2 (Disability)
or 2.3 (for Cause) or by the Executive under Section 2.4 (for Good Reason) shall be communicated by notice of termination to the other party. A notice of termination shall mean a notice which includes the specific termination Section in this
Agreement relied upon and shall set forth, in reasonable detail, the facts and circumstances claimed to provide a basis for termination of employment under the Section so indicated. 
  

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 2.6 Date of Termination. The date the Executive’s employment is terminated under
Section 2 of this Agreement is called the “Date of Termination”. In cases of Disability, the Date of Termination shall be 30 days after notice of termination is given (provided that the Executive shall not have returned to the
performance of his duties on a full-time basis during such 30 day period). If the Executive’s employment is terminated for Cause, the Date of Termination shall be the date specified in the notice of termination. If the Executive’s
employment is terminated for Good Reason, the Date of Termination shall be the date set out in the notice of termination. 
 Any dispute by a
party hereto regarding a notice of termination delivered to such party must be conveyed to the other party within 30 days after the notice of termination is given. If the particulars of the dispute are not conveyed within the 30 day period, then the
disputing party’s claims regarding the termination shall be forever deemed waived. 
 2.7 Prior Notice Required of Company
Actions. During the Protected Period, the Company shall not terminate the Executive’s employment (except for Disability or for Cause or pursuant to the Employment Agreement) or take any Company Action as defined in Section 2.4
without first giving the Executive at least three months’ prior notice of termination or the planned Company Action, as the case may be. 
 3.
Benefits upon Termination of Employment 
 3.1 General. If, during the Protected Period following each Change in
Control, the Executive’s employment is terminated either (i) by the Company (other than for Disability or Cause under this Agreement and other than for disability or cause under the Employment Agreement) or (ii) by the Executive for
Good Reason, then the Executive, at his election, shall be entitled to the benefits provided in this Section 3 (collectively and severally “Termination Benefits”). If the Executive elects to receive Termination Benefits under
this Agreement then he shall automatically forfeit his right, if any, under the Employment Agreement to render consulting services to the Company on the terms and conditions set out in the Employment Agreement and shall also automatically forfeit
his right to receive the compensation and benefits provided for in Section 8 of the Employment Agreement. 
 3.2 Base Salary
Through Date of Termination. The Company shall pay the Executive his full base salary through the Date of Termination under the Company’s regular payroll procedures and at the rate in effect at the time notice of termination is given.
The Company shall give the Executive credit for any vacation earned but not taken and pay such amount at the time that any earned but not yet paid bonus is paid under Section 3.3. 
 3.3 Pro-Rata Bonus for Year of Termination. The Company shall pay the Executive a pro-rata bonus for the year in which his employment
terminates. The pro-rata bonus shall be equal to “A” divided by “B” with the quotient multiplied by “C” where: 
  

	 	(a)	“A” equals the number of days the Executive is employed by the Company in the year in which the termination of employment occurs (the “Termination
Year”); 

  

 6 

	 	(b)	“B” equals 365; and 

  

	 	(c)	“C” equals the maximum bonus the Executive would have been eligible for in the Termination Year under Section 4.2 of his Employment Agreement or under the
Company’s Key Officers Incentive Compensation Plan (or successor plans), whichever may be applicable. 

 The pro-rata
bonus shall be paid by the Company in a lump sum, within 30 days after the bonus amount is determinable, except that if such payment is required to be delayed six months to conform to the requirements of Section 409A(a)(2)(B) of the Internal
Revenue Code of 1986 (as amended) (“the Code”), such pro-rata bonus shall be paid at such later time. 
 3.4 Monthly
Severance Payments. The Company shall pay the Executive the aggregate severance payments equal to (i) 160% of the Executive’s annual base salary (notwithstanding any deferral of compensation) as of the date of the Change in Control
or as of the Date of Termination, whichever is greater, multiplied by (ii) 2.5. The 160% figure in this Section shall be appropriately increased or decreased as the Executive’s target bonus amount (which is expressed as a percentage of his
annual base salary and is currently 60%) is increased or decreased. Thus, for example, if Executive’s target bonus is later increased to 70%, the 160% figure would be increased to 170%. 
 The severance payments in this Section 3.4 shall be made in 30 equal, consecutive monthly installments, with the first installment to be on the
first day of the first month immediately following the Date of Termination, except that if such payment is required to be delayed six months to conform to the requirements of Section 409A(a)(2)(B) of the Code, such installments shall be delayed
consistent with those requirements, at which time a single sum shall be paid equal to any installments that have not been paid and the remainder of the installment payments shall commence on a monthly basis thereafter. 
 3.5 Welfare Plans and Fringe Benefits. 
 (a) For purposes of this Section 3.5, welfare plans and fringe benefit programs include health, disability, life, salary continuance prior to disability, automobile usage, and any other fringe benefit or welfare
plan arrangement in which the Executive was entitled to participate immediately prior to the Date of Termination. 
 (b) The Company shall
maintain in full force, for the continued benefit of the Executive for 30 months after the Date of Termination, all welfare plans and fringe benefit programs (including health insurance, disability insurance, and life insurance) that may be provided
to the to the Executive as a former employee on a tax-free basis under the Code. 
 (c) To the extent that any other welfare plan or fringe
benefit program cannot be maintained under Section 3.5(b) above on a tax-free basis to the Executive under the applicable provisions of the Code, such benefits shall be continued for the period, if any, that is recognized under Code section
409A (including guidance issued thereunder) as not resulting in a deferral of compensation, but in no event beyond 30 months. 
  

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 (d) To the extent any welfare plan or fringe benefits cannot be provided for 30 months from the Date of
Termination under Sections 3.5(b) and (c) above, Executive shall be entitled to a lump sum payment that is reasonably determined to equal the cost of coverage or the value of benefits, as applicable, that would have been provided during such 30
month period. Such lump sum payment shall be delayed for six months to the extent required to conform to the requirements of Internal Revenue Code Section 409A(a)(2)(B). At the close of the 30 months period, any assignable insurance policy owned by
the Company and relating specifically to the Executive shall be assigned to the Executive. 
 3.6 Retirement Plans. 

(a) The Company shall pay the Executive an additional retirement benefit as specified in this Section 3.6. Such benefit shall be the actuarial
equivalent of the additional benefit to which the Executive would have been entitled under the Company’s Retirement Plans in effect immediately prior to a Change in Control had the Executive accumulated 30 additional months of continuous
service (following the Date of Termination) under such Retirement Plans both for purposes of determining eligibility for benefits and for purposes of calculating the amount of such benefits. If any Retirement Plan requires contributions by
participants, the amount of additional retirement benefit payable under this Section 3.6 shall be equitably adjusted to reflect the absence of contributions by the Executive and any matching contribution that would be contingent upon the
Executive’s contributions shall be calculated as if the Executive made the maximum contribution allowable under the terms of such Retirement Plan. 
 (b) For purposes of this Section 3.6, “Retirement Plans” are (i) any savings or retirement plan sponsored by the Company that is intended to be tax-qualified under Internal Revenue Code section
401(a), and any arrangements that make up benefits that are not provided under such tax-qualified plans because of compensation or benefit limits under the terms of such plans or the Internal Revenue Code, (ii) the Executive Stock Unit Program,
and (iii) any deferred compensation program in which the Executive participates that is adopted after the effective date of this agreement that is intended to provide for retirement savings and that is designated by the Board or Compensation
Committee as a Retirement Plan. 
 (c) The additional retirement benefit under this Section 3.6 shall be paid in a cash lump sum as of
the date that the Executive receives or commences benefits under the terms of the Retirement Plan. With respect to the additional retirement benefit paid with respect to a tax-qualified plan, however, payment shall be made as of the later of 30 days
following the Date of Termination or the date that the Executive attains normal retirement age under such plan. In all events, payments shall be delayed for six months to the extent required to conform to the requirements of Internal Revenue Code
Section 409A(a)(2)(B). 
 3.7 Stock Options. Except for stock options not yet vested under the Company’s Deferred
Compensation Program, the Company shall accelerate and make immediately exercisable in full any unexercised stock options that are not fully exercisable and that the Executive then holds to acquire securities from the Company. The Executive may
elect to surrender to the Company his rights in outstanding stock options during the period beginning 

  

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with the notice of termination and ending three months after the Date of Termination (the “Option Election Period”). Upon such surrender,
the Company shall pay to the Executive an amount in cash per optioned share equal to the difference between (i) the option price of such share and (ii) the closing price of the Company’s shares on the date the options (or in the case
of Section 3.10, the shares) are surrendered to the Company. If, as of such surrender date the option price of such share exceeds the closing price, the Company shall pay to the Executive an amount in cash per optioned share equal to the value
of the option that is determined under the methodology for valuing stock options adopted pursuant to Section 3.11. 
 If, within six
months of the taking of any Company Action under Section 2.4, the Executive dies while still employed by the Company, the Executive’s estate shall be entitled, upon notice to the Company within 90 days of the Executive’s death, to be
paid an amount equal to the amount the Executive would have received had he surrendered all of his stock options under this Section as of the date preceding his death. Such amount shall be paid in cash by the Company within 45 days after receipt of
the notice and the delivery of an instrument surrendering all rights the Executive’s estate may have held to the stock options. 
 3.8
Purchase of Company Car. The Company shall permit the Executive within 60 days from the Date of Termination, to purchase any Company automobile the Company was providing for the Executive’s use at the time notice of termination
was given. The purchase price shall be the book or wholesale value at such time, whichever is lower. 
 3.9 Repurchase of Company
Shares Owned by Executive. Any unvested securities of the Company that the Executive holds shall become fully vested (with the exception of stock units not yet vested under the Company’s Deferred Compensation Program). Upon
Executive’s request during the Option Election Period, the Company shall purchase all Company shares owned by the Executive immediately prior to the Date of Termination. Within 45 days after the request is made, the Executive’s shares,
properly endorsed and free of all claims, shall be delivered to the Company. Thereupon, the Company shall pay the purchase price in cash, determined under the method set forth in Section 3.7. 
 3.10 Termination Which Does Not Require Payment of Termination Benefits. No Termination Benefits shall be provided by the Company to the
Executive under this Section 3 if the Executive’s employment is terminated: 
  

	 	(a)	By his death; or 

  

	 	(b)	By the Executive other than for Good Reason (e.g., by retirement); or 

  

	 	(c)	By the Company for Disability or for Cause under this Agreement or for disability or cause under the Employment Agreement. 

 As used herein, retirement by the Executive means termination of employment in accordance with the Company’s normal retirement policy, including
early retirement, generally applicable to the Company’s salaried employees or in accordance with any special retirement arrangement jointly established by the Company and the Executive and mutually agreeable to both. 
  

 9 

 3.11 Gross Up Payment. If any payment or benefit received by the Executive under this
Agreement or any other plan or agreement with the Company (a “Benefit”) is subject to tax under Section 4999 of the Internal Revenue Code of 1986, as amended, or any interest or penalties are incurred by the Executive with
respect to such tax (collectively, “Excise Tax”), the Company will pay the Executive an amount (“Gross Up Payment”) that covers: all Excise Taxes payable by Executive because of any such Benefit and all income and
employment taxes and Excise Taxes on the Gross Up Payment. It is the Company’s intent that any payment under this Section 3.11 shall place the Executive in the same position that he would have been in had the Benefit not been subject to
the Excise Tax. Any Gross Up Payment shall be made no later than the date the Excise Tax is payable by the Executive or the date it is withheld as provided below. 
 The Company shall determine whether or not any Benefit is subject to the Excise Tax and withhold the amount of the Excise Tax from any Benefit or other remuneration payable to the Executive. Any such determination
shall be made in good faith and after consultation with the Company’s independent certified public accountants or outside tax counsel. The Company shall also have the right, on behalf of the Executive, at its sole cost and expense, to contest
any claim by the Internal Revenue Service (“Service”) that any Benefit is subject to the Excise Tax or file and pursue a claim for refund of any Excise Tax previously paid. The Executive shall cooperate with the Company in any such
proceeding and provide the Company with any notifications received by the Executive from the Service. If the Executive receives any refund of Excise Tax for which a Gross Up Payment has been made, the Executive shall pay such refund to the Company.
Provided, however, that the Gross-Up Payment shall be made only to the extent that the total value of Benefits exceeds by 10 percent or more the dollar amount that is 3 times the Executive’s “base amount” (as defined in
Section 280G of the Code). If the total value of Benefits exceeds by less than 10 percent the dollar amount that is 3 times the Executive’s “base amount,” then no Gross-Up Payment shall be made and Benefits shall be capped at the
amount that is $1 less than 3 times the Executive’s “base amount.” 
 4. No Obligation to Mitigate 
 The Termination Benefits provided under Section 3 shall not be treated as damages, but rather shall be treated as severance compensation to which the
Executive is entitled. The Executive shall not be required to mitigate the amount of any Termination Benefit provided under Section 3 by seeking other employment or otherwise; provided, however, any health welfare and fringe benefits that the
Executive may receive from full time employment by a third person shall be applied against and reduce any such benefits thereafter to be made available to the Executive under Section 3.5. 
  

 10 

 5. Voluntary Termination of Employment by Executive After Certain Change in Control 
 The Executive may voluntarily terminate his employment with the Company for any reason (including retirement) within one year of any Change in Control. A
termination of employment under this Section 5 shall be deemed a valid and proper termination of the Employment Agreement if then in force and to this extent the parties agree that the Employment Agreement is hereby amended. Upon any such
termination of employment the Executive may in his sole discretion elect to receive, and the Company shall provide, the following benefits and no others under this Agreement: 
  

	 	(a)	The Company shall promptly pay the Executive those salary, bonus and vacation payments provided for in Section 3.2. 

  

	 	(b)	The Company shall promptly pay the Executive the pro-rata bonus provided for in Section 3.3. 

  

	 	(c)	The Company shall promptly pay the Executive a non-forfeitable lump sum cash termination payment equal to 75% of the Executive’s total cash compensation for the calendar year
immediately preceding the Date of Termination of his employment. 

  

	 	(d)	The Company shall provide the Executive for one year with those benefits described in Section 3.5. The benefits provided under this subsection (d) shall be reduced by any
such benefits the Executive thereafter receives from full time employment by a third person. 

 If the Executive does not elect
to receive benefits under this Section 5, then he shall remain eligible to receive Termination Benefits in accordance with the provisions of Section 3. The benefits payable to the Executive under this Section 5 are in addition to all
benefits provided to him under the Employment Agreement. However, if the Executive elects to receive benefits under this Section 5 then he shall automatically forfeit his option, if any, under the Employment Agreement to render consulting
services to the Company on the terms and conditions set out in the Employment Agreement and shall also automatically forfeit his right to receive the compensations and benefits provided for in Section 8 of the Employment Agreement. 

The only Change in Control that will permit an Executive to make an election under this Section 5 is a Change in Control that is opposed by a
majority vote of the Board and in connection with such Change in Control or as a result thereof: 
  

	 	(a)	A majority of the whole Board becomes comprised of persons other than Original Directors or their Successors (as those terms are defined in Section 1.1(c)); or

  

	 	(b)	Any person (as defined in Section 1.1(b)) becomes the beneficial owner), directly or indirectly, of 50% or more of the combined voting power of the Company’s then
outstanding voting securities. 

  

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 6. Termination of Employment Prior to Change in Control 
 Prior to a Change in Control and if there is no Employment Agreement in force, the Executive shall not voluntarily terminate his employment with the
Company except upon at least three months’ prior notice. Similarly, the Company shall not terminate the Executive’s employment other than for Cause except upon at least three months’ prior notice. If the Employment Agreement is in
force, termination of employment by the Executive or the Company shall be governed by the terms thereof. 
 7. Successor; Binding Agreement

 The Company will require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or
substantially all of the business and/or assets of the Company to expressly assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform it if no such succession had taken place
(the assumption shall be by agreement in form and substance satisfactory to the Executive). Failure of the Company to obtain such agreement prior to the effectiveness of any such succession shall be a breach of this Agreement and shall entitle the
Executive, at his election, to Termination Benefits from the Company in the same amount and on the same terms as the Executive would be entitled to hereunder if he terminated his employment for Good Reason, except that for purposes of implementing
the foregoing, the date on which any such election becomes effective shall be deemed the Date of Termination. As used in the Agreement “Company” means the Company as previously defined and any successor to its business and/or assets
which executes and delivers the agreement provided for in this Section 7 or which otherwise becomes bound by all the terms and provisions of this Agreement by operation of law. 
 This Agreement shall inure to the benefit of and be enforceable by the Executive’s personal or legal representatives, executors, administrators,
successors, heirs, distributes, devisees and legatees. If the Executive should die while any amount would still be payable to him hereunder if he had continued to live, all such amounts, unless otherwise provided herein, shall be paid in accordance
with the terms of this Agreement to his devisee, legatee or other designee or, if there be no such designee, to his estate. 
 8. Miscellaneous

 8.1 Notice. All notices, elections, waivers and all other communications provided for in this Agreement shall be in
writing and shall be deemed to have been duly given when delivered or mailed by United States certified mail, return receipt requested, postage prepaid, addressed to the respective addresses set forth on the first page of this Agreement, or to such
other address as either party may have furnished to the other in writing in accordance herewith, except that notices of change of address shall be effective only upon receipt. 
 8.2 No Waiver. No provisions of this Agreement may be modified, waived or discharged unless such waiver, modification or discharge is
agreed to in writing, signed by the Executive and an officer of the Company. No waiver by either party at any time of any breach by the other party of, or compliance with, any condition or provision of this Agreement to be 

  

 12 

 
performed by such other party shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time. No
agreements or representations, oral or otherwise, express or implied, with respect to the subject matter hereof have been made by either party which are not set forth expressly in this Agreement. 
 8.3 Enforceability. The invalidity or unenforceability of any provisions of this Agreement shall not affect the validity or enforceability
of any other provision of this Agreement, which shall remain in full force and effect. 
 8.4 Disputes. Any dispute or
controversy arising under or in connection with this Agreement shall be settled by arbitration in accordance with the Commercial Arbitration Rules procedures of the American Arbitration Association. If, at any time after 90 days from the date of the
Executive’s Termination of Employment, the Executive and the Company have not resolved any dispute or controversy arising under or in connection with this Agreement, either the Executive or the Company may notify the other of an intent to seek
arbitration. Arbitration shall occur before a single arbitrator in the State of Missouri; provided, however, that if the parties cannot agree on the selection of such arbitrator within 30 days after the matter is referred to arbitration, each party
shall select one arbitrator and those arbitrators shall jointly designate a third arbitrator to comprise a panel of three arbitrators. The decision of the arbitrator shall be rendered in writing, shall be final, and may be entered as a judgment in
any court in the State of Missouri. Company and the Executive each irrevocably consent to the jurisdiction of the federal and state courts located in the State of Missouri for this purpose. The Company shall pay all costs and expenses in connection
with any arbitration under this Section 8.4, including without limitation all reasonable legal fees incurred by Executive in connection with such arbitration; provided, however, the Company shall not be obligated to pay unless the Executive
prevails on the majority of the dollar amount at issue in the dispute. 
 8.5 Sections; Captions. All references in this
Agreement to Sections refer to the applicable Sections of this Agreement. References in this Agreement to a given Section (e.g., Section 3) shall, unless the context requires otherwise, refer to all parts of such Section (e.g.,
3.1 through 3.12). 
 The captions have been placed in this Agreement for ease of reference only. They shall not be used in the
interpretation of this Agreement. 
 8.6 Term of Agreement. This Agreement shall continue in force so long as the Executive
remains employed by the Company or any successor and shall apply to any Change in Control that occurs while the Executive remains so employed, except as so modified by the parties from time to time, including modifications to take into account
changes in law1. 
 8.7 Limited Right of Offset. Effective upon a Change in Control, the Company waives, and will not assert,
any right to set off the amount of any claims, liabilities, damages or losses the Company may have against the Executive under this Agreement or otherwise if (i) the Executive’s employment is terminated by the Company without cause, or
(ii) the Executive terminates his employment for “Good Reason” under Section 2.4. 
  

 13 

 8.8. Release. The payment of benefits under this Agreement are contingent upon the
Executive’s execution of a release, in a form reasonably acceptable to Executive’s legal counsel, waiving all claims against the Company arising in connection with the Executive’s employment and termination of employment with the
Company. 
 8.9 Successive Changes in Control. A separate Change in Control shall be deemed to have occurred with each
occurrence of any event described at subsections (a) through (e) of Section 1.1. This Agreement pertains to each and every Change in Control, including successive Changes in Control involving the same controlling person(s).

 8.10 Interpretation of Agreement and Application of Code Section 409A. In the event of any ambiguity, vagueness or
other matter involving the interpretation or meaning of this Agreement, this Agreement shall be liberally construed so as to provide to the Executive the full benefits set out herein. Nothing in this Agreement is intended, however, to pay a benefit
in a form or manner that would result in taxation to the Executive under Code section 409A and this Agreement shall be interpreted accordingly. 
 8.11 Withholding. The Company may withhold all federal, state, and local income and employment taxes as required under applicable laws and regulations. 
 IN WITNESS WHEREOF, this Agreement has been signed as of the day and year first above written. 
  

					
	EXECUTIVE:	    	LEGGETT & PLATT, INCORPORATED
			
	 /s/ Karl G. Glassman
  
	    	By:	 	 /s/ David S. Haffner
  

	Karl G. Glassman	    		 	David S. Haffner
		    		 	Chief Executive Officer and President

  

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