Document:

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                                                                    Exhibit 10.1

                            TAX ALLOCATION AGREEMENT

                                 BY AND BETWEEN

                                    CRANE CO.

                                       AND

                         HUTTIG BUILDING PRODUCTS, INC.

                                December 16, 1999

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                            TAX ALLOCATION AGREEMENT

         THIS TAX ALLOCATION AGREEMENT (this "Agreement"), dated as of December
16, 1999 by and between Crane Co., a Delaware corporation ("Crane"), and Huttig
Building Products, Inc., a Delaware corporation and a wholly owned, indirect
subsidiary of Crane ("Huttig").

                              W I T N E S S E T H:
                               - - - - - - - - - -

         WHEREAS, Crane and Huttig have entered into a Distribution Agreement
dated as of December 6, 1999 (the "Distribution Agreement"), providing for the
Distribution (as defined in the Distribution Agreement) of all of the
outstanding stock of Huttig to Crane's shareholders;

         WHEREAS, the Board of Directors of Crane and Crane International
Holdings, Inc. ("Crane International"), a Delaware corporation and a wholly
owned subsidiary of Crane and the direct owner of all of the outstanding stock
of Huttig prior to its distribution to Crane, have approved the Distribution
Agreement;

         WHEREAS, the execution and delivery of this Agreement by the parties
hereto is a condition to the obligations of the parties to the Distribution
Agreement to consummate the Distribution; and

         WHEREAS, Crane on behalf of itself and the Crane Group (as defined
herein) and Huttig, on behalf of itself and the Huttig Group (as defined
herein), wish to provide for the allocation between the Crane Group and the
Huttig Group of all responsibilities, liabilities and benefits relating to or
affecting Taxes (as defined herein) paid or payable by either of them for all
taxable periods, whether beginning before, on or after the Distribution Date (as
defined herein) and to provide for certain other matters.

         NOW, THEREFORE, in consideration of the premises and of the respective
covenants and agreements set forth herein, the parties hereto hereby agree as
follows:

                                    ARTICLE I
                                   DEFINITIONS

         Section 1.1. DEFINITIONS. Capitalized terms used in this Agreement and
not otherwise defined herein shall have the meanings assigned to such terms in
the Distribution Agreement, as the case may be. As used in this Agreement, the
following terms shall have the following respective meanings:

          "Actually Realized" or "Actually Realizes" means, for purposes of
determining the timing of any Taxes (or related Tax cost or benefit) relating to
any Payment, transaction, occurrence or event (including the receipt of any Tax
Refund), the time at which the amount of

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Taxes payable by such person is increased above or reduced below, as the case
may be, the amount of Taxes that such person would be required to pay but for
such payment, transaction, occurrence or event.

         "Affiliate" means with respect to each of the parties hereto, (i) a
corporation, partnership, limited liability company, trust, joint venture or
other business entity in which 50% or more of the outstanding equity or voting
power is owned (directly or indirectly) by such party, and (ii) a partnership in
which a general partner interest is owned by such party. For purposes of this
Agreement, in no event shall Crane or Huttig be treated as an Affiliate of the
other.

         "Affiliated Group" means the affiliated group of corporations within
the meaning of Section 1504 of the Code of which Crane is the common parent.

         "Code" means the Internal Revenue Code of 1986, as amended, and shall
include corresponding provisions of any subsequently enacted Federal Tax laws.

         "The Crane Group" means, solely for purposes of this Agreement, Crane
and its Affiliates, other than Huttig and its Affiliates (determined after
giving effect to the Distribution).

         "Crane Tax Difference" has the meaning set forth in Section 4.1(b).

         "Crane Tax Item" means a Tax Item that is attributable to the Crane
Group and is not a Huttig Tax Item.

         "Consolidated Federal Tax Returns" are the Federal Tax Returns for the
Affiliated Group filed on a consolidated basis pursuant to Section 1501 of the
Code for any Pre-Distribution Taxable Period.

         "Consolidated State Tax Returns" are the state Tax Returns for the
Affiliated Group filed on a consolidated, unitary or combined basis pursuant to
the laws of any state Taxing Authority for any Pre-Distribution Taxable Period.

         "Distribution" means the distributions of Huttig Common Stock to Crane
and to the holders of Crane Common Stock pursuant to the Distribution Agreement.

         "Distribution Agreement" mean the Distribution Agreement dated as of
December 6, 1999 between Crane and Huttig.

         "Distribution Date" means the date on which the Distribution occurs or
is deemed to occur for Federal Income Tax purposes and shall be deemed effective
as of the close of business on such date.

         "Group" means either the Crane Group or the Huttig Group, as the
context provides.

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         "Huttig Group" means Huttig and its Affiliates, determined immediately
after the Distribution, specifically, Rondel's Inc. and CIPCO Inc.

         "Huttig Tax Item" means a Tax Item solely attributable to the Huttig
Group.

         "Income Tax Benefit" means for any taxable period the excess of (i) the
Income Tax liability of the taxpayer for the taxable period calculated as if the
Timing Difference or Reverse Timing Difference, as the case may be, had not
occurred but with all other facts unchanged, over (ii) the Income Tax liability
of the taxpayer for the taxable period, calculated taking into account the
Timing Difference or Reverse Timing Difference, as the case may be (treating an
Income Tax Refund as a negative Income Tax liability for purposes of such
calculation).

         "Income Tax Detriment" means for any taxable period the excess of (i)
the Income tax liability of the taxpayer for the taxable period, calculated
taking into account the Timing Difference or Reverse Timing Difference, as the
case may be, over (ii) the Income Tax liability of the taxpayer for the taxable
period, calculated as if the Timing Difference or Reverse Timing Difference, as
the case may be, had not occurred but with all other facts unchanged (treating
an Income Tax Refund as a negative Income Tax liability for purposes of such
calculation).

         "Income Taxes" means any Tax based upon, measured by, or calculated
with respect to (i) net income or profits (including, but not limited to, any
capital gains, alternative minimum Tax and any Tax on items of Tax preference,
but not including sales, use, real property gains, real or personal property,
gross or net receipts, transfer or similar Taxes) or (ii) multiple bases
(including, but not limited to, corporate franchise, doing business or
occupation Taxes) if one or more of the bases upon which such Tax may be based,
measured by, or calculated with respect to, is described in clause (i) above.

         "Indemnitee" has the meaning set forth in Section 6.2.

         "Indemnitor" has the meaning set forth in Section 6.2.

         "Indemnity Issue" has the meaning set forth in Section 6.2.

         "IRS" means the Internal Revenue Service.

         "Loss Group" has the meaning set forth in Section 4.1(a)(ii).

         "Opinion of Counsel" means an opinion of independent tax counsel of
recognized national standing and experienced in the issues to be addressed and
otherwise reasonably acceptable to Crane, which sets forth an Unqualified Tax
Opinion in form and substance satisfactory to Crane. In no event shall Crane be
required to conclude that an opinion is satisfactory if there is any risk,
however remote, that the transaction which is the subject of the opinion will
cause the Distribution to be taxable to any extent under the Code in a manner
inconsistent with the rulings requested in the Ruling Request.

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         "Post-Distribution Taxable Period" means a taxable period beginning
after the Distribution Date.

         "Post-Tax Indemnification Period" means any Post-Distribution Taxable
Period and that portion of any Straddle Period that begins on the day after the
Distribution Date.

         "Pre-Distribution Taxable Period" means a taxable period ending on or
before the Distribution Date.

         "Restricted Period" means the two year period beginning on the
Distribution Date.

         "Reverse Timing Difference" means an increase in income, gain or
recapture, or a decrease in deduction, loss or credit, as calculated for Income
Tax purposes, of the taxpayer for any Tax Indemnification Period coupled with an
increase in deduction, loss or credit, or a decrease in income, gain or
recapture, of the taxpayer for any Post-Tax Indemnification Period.

         "Ruling Request" means the request for rulings (including all
appendices, exhibits and supplements) under Section 355 of the Code, dated July
2, 1999 and filed with the IRS National Office on behalf of Crane, in respect of
the Distribution.

         "Straddle Period" means a taxable period that begins before and
includes but does not end on the Distribution Date.

         "Tax" or "Taxes" means all forms of taxation, whenever created or
imposed, and whether imposed by a local, municipal, governmental, state,
foreign, federal or other body, and without limiting the generality of the
foregoing, shall include income, sales, use, ad valorem, gross receipts,
license, value added, franchise, transfer, recording, withholding, payroll, wage
withholding, employment, excise, occupation, unemployment insurance, social
security, business license, business organization, stamp, environmental, premium
and property taxes, together with any related interest (including the actual
interest that would have accrued if there were no netting of Taxes), penalties
and additions to any such tax, or additional amounts imposed by any Taxing
Authority (domestic or foreign) upon the Crane Group or the Huttig Group.

         "Tax Audit Proceeding" means any audit or other examination, judicial
or administrative proceeding relating to liability for, or refunds or
adjustments with respect to, Taxes.

         "Tax Binder" means the annual information package prepared by Huttig
for use by Crane in preparing state and federal tax returns.

         "Tax Contest" has the meaning set forth in Section 6.2.

         "Tax Deficiency" means a net increase in Taxes payable as a result of a
Tax Audit Proceeding or an amendment of a Tax Return or an event having a
similar effect.

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         "Tax Indemnification Period" means any Pre-Distribution Taxable Period
and that portion of any Straddle Period that ends on and includes the
Distribution Date.

         "Tax Item" means any item of income, gain, loss, deduction, credit,
provisions for reserves, recapture of credits or any other item which is taken
into account in determining taxable income or is otherwise taken into account in
determining Taxes paid or payable, including an adjustment under Section 481 of
the Code resulting from a change in accounting method, and amounts of property,
payroll, sales or other items that are relevant to the apportionment, allocation
and determination of Taxes for purposes of determining Tax liabilities other
than Federal Income Tax liability.

         "Tax Records" has the meaning set forth in Section 7.2

         "Tax Refund" means a refund of Taxes (including a reduction in Taxes as
a result of the utilization of any credit or any offset against Taxes or Tax
Items) reduced (but not below zero) by any net increase in Taxes Actually
Realized by the recipient (or its Affiliate) thereof as a result of the receipt
thereof.

         "Tax Return" means any return, filing, questionnaire, information
return or other document required to be filed, including requests for extensions
of time, filings made with respect to estimated tax payments, claims for refund
and amended returns that may be filed, for any period with any Taxing Authority
(whether domestic or foreign) in connection with any Tax or Taxes (whether or
not a payment is required to be made with respect to such filing).

         "Taxing Authority" means any governmental or quasi-governmental body
exercising any Taxing authority or Tax regulatory authority.

         "Timing Difference" means an increase in income, gain or recapture, or
a decrease in deduction, loss or credit, as calculated for Income Tax purposes,
of the taxpayer for any Post-Tax Indemnification Period coupled with an increase
in deduction, loss or credit, or a decrease in income, gain or recapture, of the
taxpayer for any Tax Indemnification Period.

         "Unqualified Tax Opinion" means an unqualified "will" opinion of tax
counsel to the effect that a transaction does not disqualify the Distribution
from qualifying for tax-deferred treatment for the shareholders of Crane and any
member of the Crane Group under Code ss. 355 and any other applicable sections
of the Code, assuming that the Distribution would have qualified for
tax-deferred treatment if such transaction did not occur. An Unqualified Tax
Opinion may rely upon, and assume the accuracy of, any representations contained
in the Ruling Request, and any representations contained in an officer's
certificate delivered by an officer of Crane or Huttig to such counsel.

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                                   ARTICLE II
                      PREPARATION AND FILING OF TAX RETURNS

         Section 2.1.  PREPARATION OF TAX RETURNS.

                  (a) Consistent with Agreements. Each of the parties to this
Agreement agrees to, and to cause each of its relevant Affiliates to, report the
Distribution as a series of transactions that satisfy the requirements of Code
Section 355.

                  (b) Consistent with Past Practice. Except for any accounting
method changes pursuant to applications that are approved by the IRS, all Tax
Returns described in Section 2.2 filed after the date of this Agreement, in the
absence of a controlling change in law or circumstance, shall be prepared on a
basis consistent with the elections, accounting methods, conventions and
principles of taxation used for the most recent taxable periods for which Tax
Returns involving similar Tax Items have been filed. Subject to the provisions
of this Agreement, all decisions relating to the preparation of Tax Returns
shall be made in the sole discretion of the party responsible under this
Agreement for such preparation.

                  (c) Huttig Obligations. Huttig agrees to cooperate in good
faith with Crane to determine the appropriate amount of Tax Items, if any,
attributable to the Crane Group to be reflected on any Tax Returns for Straddle
Periods to be prepared by Crane in accordance with Section 2.2(c). With respect
to such Tax Returns, Huttig (i) will deliver to Crane no later than 60 days
after the Closing Date a Tax Binder for itself and each Affiliate for such
taxable years and (ii) will consult with Crane with respect to the application
of the Tax Items to be shown on the Tax Returns. Huttig will inform and consult
with Crane regarding any Tax Audit Proceedings or any other adjustments which
would materially affect any of the Tax Items shown on the Tax Returns. Huttig
shall provide Crane with comments and/or objections to such Tax Returns at least
21 days prior to the due date for filing such Tax Returns (giving effect to
applicable extensions).

                  (d) Crane Obligations. Crane agrees to cooperate in good faith
with Huttig to determine the appropriate amount of Tax Items attributable to the
Huttig Group to be reflected on any Tax Returns for Pre-Distribution Taxable
Periods and Straddle Periods to be prepared and filed by Crane in accordance
with Section 2.2(a), (b) and (c). Crane further agrees to (i) provide Huttig
with a copy of each such Tax Return at least 10 days prior to the due date for
filing of any such Tax Returns (giving effect to applicable extensions) for such
taxable years and (ii) consult with Huttig with respect to the Tax Items to be
shown on such Tax Returns. The computations made with respect to the Tax Returns
shall be made, when applicable, on a basis consistent with the principles of
Treasury Regulation ss. 1.1502-76(b)(2). Crane will inform and consult with
Huttig regarding any Tax Audit Proceedings or any other adjustments that would
materially offset any of the Tax Items shown on the Tax Returns. Crane will
provide Huttig with copies of all Tax Returns prepared and filed by Crane in
accordance with Sections 2.2(a), (b) and (c) promptly after filing.

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         Section 2.2.  FILING OF TAX RETURNS.

                  (a) Consolidated Federal Tax Returns and Consolidated State
Tax Returns. The Consolidated Federal Tax Returns and the Consolidated State Tax
Returns required to be filed after the date hereof shall be prepared or caused
to be prepared and filed by Crane.

                  (b) Pre-Distribution Taxable Period Tax Returns. All Tax
Returns other than those described in Section 2.2(a) that are required to be
filed for any Pre-Distribution Taxable Period shall be prepared and timely filed
or caused to be prepared and timely filed by Crane.

                  (c) Huttig Straddle Period Tax Returns. All Tax Returns other
than those described in Section 2.2(a) which are required to be filed by any
member of the Huttig Group for any Straddle Period shall be prepared and timely
filed or caused to be prepared and timely filed by Huttig.

                  (d) Crane Straddle Period Tax Returns. All Tax Returns other
than those described in Section 2.2(a) which are required to be filed by any
member of the Crane Group for any Straddle Period shall be prepared and timely
filed or caused to be prepared and timely filed by Crane.

                  (e) Post-Distribution Taxable Period Tax Returns. The filing
of all Tax Returns for all Post-Distribution Taxable Periods shall be the
responsibility of the Huttig Group if such Tax Returns relate to a member or
members of the Huttig Group or their respective assets or businesses, and shall
be the responsibility of the Crane Group if such Tax Returns relate to a member
or members of the Crane Group or their respective assets or businesses.

         Section 2.3. DESIGNATION. Huttig hereby irrevocably designates, and
agrees to cause each of its Affiliates to so designate, Crane as its agent to
take any and all actions necessary or incidental to the preparation and filing
of the Tax Returns described in Section 2.2(a), (b) and (d). Crane hereby
irrevocably designates, and agrees to cause each of its Affiliates to so
designate, Huttig as its agent to take any and all actions necessary or
incidental to the preparation and filing of the Tax Returns described in Section
2.2(c).

                                   ARTICLE III
                                PAYMENT OF TAXES

         Section 3.1.  PAYMENT OF TAX LIABILITIES.

                  (a)      Consolidated and Pre-Distribution Tax Liabilities.

                           (i) Huttig Liability. Except as otherwise provided in
this Agreement, Huttig or a member of the Huttig Group shall pay or cause to be
paid, directly to, or at the

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direction of, Crane (such direction may specify payment by direct wire
transfer), at least two days prior to the date payment (including any estimated
payment) thereof is due, all Taxes due with respect to the Tax Returns described
in Section 2.2(a) and (b) that are attributable to any member or members of the
Huttig Group, the respective assets or businesses of any member or members of
the Huttig Group and any Huttig Tax Item.

                           (ii) Crane Liability. Except as otherwise provided in
this Agreement, Crane or a member of the Crane Group shall pay or cause to be
paid, on a timely basis, all Taxes due with respect to the Tax Returns described
in Section 2.2(a) and (b) that are attributable to any member or members of the
Crane Group, the respective assets or businesses of any member or members of the
Crane Group and any Crane Tax Item.

                  (b) Separate Straddle Period Tax Liabilities.

                           (i) Huttig Liability. Except as otherwise provided in
this Agreement, Huttig or a member of the Huttig Group shall pay or cause to be
paid, on a timely basis, all Taxes due with respect to the Tax Returns described
in Section 2.2(c); provided, however, that Crane shall pay directly to, or at
the direction of, Huttig (such direction may specify payment by direct wire
transfer), at least two days prior to the date payment (including estimated
payment) thereof is due, that portion of those Taxes due that are attributable
to any member or members of the Crane Group, the respective assets or businesses
of any member or members of the Crane Group or any Crane Tax Item.

                           (ii) Crane Liability. Except as otherwise provided in
this Agreement, Crane or a member of the Crane Group shall pay or cause to be
paid, on a timely basis, all Taxes due with respect to the Tax Returns described
in Section 2.2(d); provided, however, that Huttig shall pay directly to, or at
the direction of, Crane (such direction may specify payment by direct wire
transfer), at least two days prior to the date payment (including estimated
payment) thereof is due, that portion of those Taxes due that are attributable
to any member or members of the Huttig Group, the respective assets or
businesses of any member or members of the Huttig Group or any Huttig Tax Item.

                  (c) Post-Distribution Taxable Period Tax Liabilities. Except
as otherwise provided in this Agreement, all Taxes for all Post-Distribution
Taxable Periods shall be paid or caused to be paid by the party responsible
under this Agreement for filing the Tax Return pursuant to which such Taxes are
due or, if no such Tax Returns are due, by the party liable, without regard to
this Agreement, for such Taxes.

         Section 3.2.  TAX REFUNDS AND CARRYBACKS.

                  (a) Retention and Payment of Tax Refunds. Except as otherwise
provided in this Agreement, Huttig shall be entitled to retain, and to receive
within 10 days after Actually Realized by the Crane Group, the portion of all
Tax Refunds of Taxes for which the Huttig Group is liable pursuant to Section
3.1 or Section 6.1(a), and Crane shall be entitled to retain, and

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to receive within 10 days after Actually Realized by the Huttig Group, the
portion of all Tax Refunds of Taxes for which the Crane Group is liable pursuant
to Section 3.1 or Section 6.1(b). Notwithstanding the foregoing, (i) all Tax
Refunds resulting from the carryback of any Crane Tax Item arising in a Post-Tax
Indemnification Period to a Tax Indemnification Period shall be for the account
and benefit of the Crane Group and, if and to the extent Actually Realized by
Huttig, Huttig shall pay over to Crane any such Tax Refund within 10 days after
it is Actually Realized by Huttig or any member of the Huttig Group, (ii) all
Tax Refunds resulting from the carryback of any Huttig Tax Item arising in a
Post-Tax Indemnification Period to a Tax Indemnification Period shall be for the
account of Huttig and, if and to the extent Actually Realized by Crane, Crane
shall pay over to Huttig any such Tax Refund within 10 days after it is Actually
Realized by Crane or any member of the Crane Group, (iii) all Tax Refunds
resulting from the utilization of any Tax Items (such as the utilization of a
minimum or foreign tax credit or Section 481(a) adjustments which reduce current
year Taxes) attributable to the Huttig Group or the respective assets or
businesses of any member or members of the Huttig Group arising in a Tax
Indemnification Period shall be for the account of Huttig and, if and to the
extent Actually Realized by Crane, Crane shall pay over to Huttig any such Tax
Refund within 10 days after it is Actually Realized by Crane or any member of
the Crane Group, and (iv) all Tax Refunds resulting from the utilization of any
Tax Items (such as the utilization of a minimum or foreign tax credit or Section
481(a) adjustments which reduce current year Taxes) attributable to the Crane
Group or the respective assets or businesses of any member or members of Crane
Group arising in a Tax Indemnification Period shall be for the account of Crane
and, if and to the extent Actually Realized by Huttig, Huttig shall pay over to
Crane any such Tax Refund within 10 days after it is Actually Realized by Huttig
or any member of the Huttig Group. In computing the amount of any Tax Refunds
described in (i), (ii), (iii) or (iv) above, the party paying over such Tax
Refunds shall be deemed to recognize all other items of income, gain, loss,
deduction or credit for that taxable period together with the utilization of any
Tax Item causing a Tax Refund described in this Section 3.2(b). Huttig and Crane
and their respective Affiliates will use commercially reasonable efforts to
claim and utilize the Tax Items referred to in (i), (ii), (iii) or (iv) in a
manner which is designed to maximize (on a present value basis) the Tax Refunds
described therein.

                  (b) Refund Claims. Huttig shall be permitted to file at
Huttig's sole expense, and Crane shall reasonably cooperate with Huttig in
connection with, any claims for Tax Refunds to which Huttig is entitled pursuant
to this Section 3.2 or any other provision of this Agreement. Huttig shall
reimburse Crane for any reasonable out-of-pocket costs and expenses incurred by
any member of the Crane Group in connection with such cooperation. Crane shall
be permitted to file at Crane's sole expense, and Huttig shall reasonably
cooperate with Crane in connection with, any claims for Tax Refund to which
Crane is entitled pursuant to this Section 3.2 or any other provision of this
Agreement. Crane shall reimburse Huttig for any reasonable out-of-pocket costs
and expenses incurred by any member of the Huttig Group in connection with such
cooperation. Any claim for a Tax Refund under this Section 3.2 to which Huttig
is entitled and which relates to a Tax Return for which Crane is required to
file under Section 2.2 shall be subject to the Crane Group's consent (such
consent not to be unreasonably withheld). A copy of a claim for any Tax Refund
to which either party is entitled to file under this Section 3.2

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shall be provided to the other party no later than 30 days prior to the filing
of such Tax Refund claim. In the event that Huttig and Crane are each entitled
to file a Tax Refund claim pursuant to this Section 3.2 for the same period,
such Tax Refunds of Crane and Huttig shall be allocated in a manner
corresponding to the allocation and calculation of Taxes for such periods under
Article IV.

                                   ARTICLE IV
                       ALLOCATION AND CALCULATION OF TAXES

         Section 4.1. ALLOCATIONS.

                  (a) (i) In the case of any Consolidated Federal Tax Return
described in Section 2.2(a), the Crane Group and the Huttig Group will each be
allocated the portion of such Taxes due with respect to such Tax Returns
attributable to each Group, the respective assets or businesses of any member or
members of each Group and any Tax Item of each Group. This allocation shall be
made in accordance with the principles set forth in Treasury Regulation Section
1.1552-1(a)(2) on the basis of the percentage of the total Tax liability for
each Group, if computed on a separate consolidated federal income tax return of
each Group, would bear to the aggregate amount of such Tax liability of the
Crane Group and the Huttig Group so computed.

                      (ii) The principles of Treasury Regulation Section
1.1502-33(d)(3) also shall apply to the allocation set forth in Section
4.1(a)(i). If the amount of the Affiliated Group's consolidated federal income
tax liability is less than the sum of the aggregate separate return tax
liabilities of the Huttig Group and the Crane Group (as computed pursuant to
Section 4.1(a)(i) above) due to losses or tax credits of one Group (including
losses or tax credits carried over from prior years), the decrease in tax
liability resulting therefrom shall be allocated 100 percent to that Group. A
Group thus may have a "negative" income tax liability as a result of such an
allocation (a "Loss Group"). If a Loss Group exists, the other Group shall pay
to the Loss Group an amount equal to such "negative" income tax liability. In
other words, if Tax attributes (e.g., losses or tax credits) of one Group are
utilized by the other Group to reduce taxable income or Tax, as the case may be,
the Group utilizing such Tax attributes shall pay to the other Group, with
respect to losses, an amount equal to such reduction in taxable income resulting
from the utilization of such losses multiplied by the top marginal federal
corporate income Tax rate actually used by the Group utilizing the losses in
calculating its deemed Tax liability (prior to the application of Tax credits
against such liability) under this Section 4.1(a) for the taxable period during
which such losses are utilized and, with respect to Tax credits, an amount equal
to the actual amount by which the deemed Tax liability calculated pursuant to
this Section 4.1(a) is reduced by such Tax credits for the taxable period during
which such Tax credits are utilized. Any such payments shall be consistent with
the procedures and timing set forth in Section 3.1(b) hereof.

                  (b) In the case of any Tax Return described in Section 2.2(b)
to be prepared by Crane or any Consolidated State Tax Returns described in
Section 2.2(a) or any Tax returns

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described in Section 2.2(c), the Huttig Group will be allocated all of the Taxes
due with respect to each such Tax Return; provided, however, if a Crane Tax Item
is included in any such Tax Return, the Taxes that would be due with respect to
such Tax Return, calculated as if the Crane Tax Item had not been included but
with all other Tax Items unchanged, shall be subtracted from the Taxes due with
respect to such Tax Return taking into account the Crane Tax Items (the "Crane
Tax Difference"). If the Crane Tax Difference is a positive amount, the Crane
Group shall be allocated an amount of Taxes due on such Tax Return equal to the
Crane Tax Difference. If the Crane Tax Difference is a negative amount, the
Huttig Group shall pay to the Crane Group an amount equal to the Crane Tax
Difference consistent with the procedures and timing set forth in Section 3.1(b)
hereof.

                  (c) In the case of any Tax Return described in Section 2.2(d),
the principles set out in Section 4.1(b) hereof shall govern.

                  (d) In the case of any Tax Return described in Section 2.2(e)
to be filed by Huttig, the Huttig Group will be allocated all the Taxes due with
respect to each such Tax Return.

                  (e) In the case of any Tax Return described in Section 2.2(e)
to be filed by Crane, the Crane Group will be allocated all the Taxes due with
respect to each such Tax Return.

                  (f) The allocations under this Section 4.1 shall be determined
in a manner consistent with the principles set forth in Section 4.3.

         Section 4.2. CALCULATIONS AND DETERMINATIONS. All calculations and
determinations required to be made pursuant to this Agreement (including the
calculation in Section 4.1) shall be made in good faith by the party making such
calculations or determinations. Except for any accounting method changes
pursuant to applications for accounting method changes filed prior to the date
hereof and any accounting method elections and changes that may be effective as
of the day after the Distribution Date, all calculations and determinations
required to be made pursuant to this Agreement (including the calculation in
Section 4.1), shall be made, in the absence of a controlling change in law or
circumstance, on a basis consistent with the elections, accounting methods,
conventions and principles of taxation used for the most recent taxable periods
for which Tax Returns involving similar Tax Items have been filed.

         Section 4.3. PRINCIPLES OF DETERMINATION. In implementing this
Agreement, except as otherwise specifically provided, the parties shall make any
adjustments that are necessary to ensure that, with respect to Taxes for
Straddle Periods or Pre-Distribution Taxable Periods, payments and
reimbursements between the parties reflect the principles that (i) Huttig is to
bear responsibility only for that portion of Taxes for Straddle Periods and
Pre-Distribution Taxable Periods that are attributable to the Huttig Group, the
respective assets or businesses of any member or members of the Huttig Group and
any Huttig Tax Item, (ii) Crane is to bear responsibility for all other Taxes
for Straddle Periods and Pre-Distribution Taxable Periods, (iii) Crane is
responsible for all Taxes for Post-Distribution Taxable Periods (calculated by

                                       11
<PAGE>   13

treating the day after the Distribution Date as the first day of any
Post-Distribution Taxable Period) reflected on the Tax Returns, the
responsibility for the filing thereof is imposed on Crane pursuant to this
Agreement, (iv) Huttig is responsible for all Taxes for Post-Distribution
Taxable Periods (calculated by treating the day after the Distribution Date as
the first day of any Post-Distribution Taxable Period) reflected on the Tax
Returns, the responsibility for the filing thereof is imposed on Huttig pursuant
to this Agreement, (v) Crane will be entitled to any Tax Refunds relating to Tax
Items attributable to the Crane Group, the respective assets or businesses of
any member or members of the Crane Group or any Crane Tax Item arising in a Tax
Indemnification Period and (vi) Huttig will be entitled to any Tax Refunds
relating to Tax Items attributable to the Huttig Group or the respective assets
or businesses of any member or members of the Huttig Group or any Huttig Tax
Item arising in a Tax Indemnification Period.

                                    ARTICLE V
                          REPRESENTATIONS AND COVENANTS

         Section 5.1. REPRESENTATIONS.

                  (a)      Crane Representations.

                           (i) Crane has reviewed the materials submitted to the
IRS in connection with the Ruling Request and, to the best of Crane's knowledge,
these materials, including, without limitation, any statements and
representations concerning Crane, its business operations, capital structure
and/or organization, are complete and accurate in all material respects. All
representations made by Crane in the Ruling Request were accurate as of the date
of the Ruling Request and will be accurate as of the effective date of this
Agreement. With respect to any representation or statement made by or on behalf
of Crane or the Crane Group in connection with the Ruling Request and to the
extent such representation or statement relates to future actions or events
under their control, neither Crane nor any member of the Crane Group will take
any action that would have caused such representation or statement to be untrue
if Crane or any member of the Crane Group had planned or intended to take such
action at the time such representation or statement was made by or on behalf of
Crane.

                           (ii) Crane hereby represents and warrants to Huttig
that Crane has no plan or intention to undertake any of the transactions set
forth in Section 5.2(a) nor does Crane or any member of the Crane Group have any
intention to cease to engage in the active conduct of its current trades or
businesses (within the meaning of Section 355(b)(2) of the Code) during the
Restricted Period.

                  (b)      Huttig Representations.

                           (i) Huttig has reviewed the materials submitted to
the IRS in connection with the Ruling Request and, to the best of Huttig's
knowledge, these materials, including, without limitation, any statements and
representations concerning Huttig, its business operations, capital structure
and/or organization, are complete and accurate in all material

                                       12
<PAGE>   14

respects. All representations made by or on behalf of Huttig or the Huttig Group
in connection with the Ruling Request were accurate as of the date of the Ruling
Request and will be accurate as of the effective date of this Agreement. With
respect to any representation or statement made by or on behalf of Huttig or the
Huttig Group in connection with the Ruling Request and to the extent such
representation or statement relates to future actions or events under their
control, neither Huttig nor any member of the Huttig Group will take any action
that would have caused such representation or statement to be untrue if Huttig
or any member of the Huttig Group had planned or intended to take such action at
the time such representation or statement was made by or on behalf of Huttig.

                           (ii) Huttig hereby represents and warrants to Crane
that Huttig has no plan or intention to undertake any of the transactions set
forth in Section 5.2(b) nor does Huttig or any member of the Huttig Group have
any intention to cease to engage in the active conduct of its current trade or
business (within the meaning of Section 355(b)(2) of the Code) during the
Restricted Period.

         Section 5.2.  COVENANTS.

                  (a)      Crane Covenants. Crane hereby agrees that:

                           (i) Crane shall, and shall cause each member of the
Crane Group to, comply in all material respects with each such representation
and statement concerning Crane and the Crane Group made in the materials
submitted to the IRS in the Ruling Request.

                           (ii) Crane will, during the Restricted Period,
continue the active conduct of the historic businesses conducted by Crane
throughout the five-year period prior to the Distribution.

                           (iii) Crane will not, nor will it permit any member
of the Crane Group to, take any action inconsistent with the information and
representations furnished to the IRS or any other Taxing Authority in connection
with the Ruling Request (or any comparable pronouncement by a Taxing Authority
under applicable law) with respect to the Distribution, regardless of whether
such information and representations are included in the ruling or pronouncement
issued by the IRS or other Taxing Authority.

                  (b)      Huttig Covenants.  Huttig hereby agrees that:

                           (i) Huttig shall, and shall cause each member of the
Huttig Group to, comply in all material respects with each such representation
and statement concerning Huttig and the Huttig Group made in the materials
submitted to the IRS in the Ruling Request.

                           (ii) During the Restricted Period, neither Huttig,
nor any member of the Huttig Group conducting an active trade or business relied
upon in connection with the Distribution, will liquidate, merge or consolidate
with any other person without the prior written

                                       13
<PAGE>   15

consent of Crane; provided that the foregoing shall not be deemed to prohibit
Huttig and the members of the Huttig Group from entering into or acquiring other
businesses or operations (subject to the limitations of this Section 5.2(b)),
from disposing of or shutting down segments of such businesses or undertaking
restructurings or reorganizations within the Huttig Group so long as Huttig and
the members of the Huttig Group continue to engage in such businesses and
continue to so maintain a substantial portion of their assets and business
operations as they existed prior to the Distribution.

                           (iii) Huttig will, during the Restricted Period,
continue the active conduct of the historic business conducted by Huttig
throughout the five-year period prior to the Distribution.

                           (iv) Huttig will not, nor will it permit any member
of the Huttig Group to, take any action inconsistent with the information and
representations furnished to the IRS or any other Taxing Authority in connection
with the Ruling Request (or any comparable pronouncement by a Taxing Authority
under applicable law) with respect to the Distribution, regardless of whether
such information and representations are included in the ruling or pronouncement
issued by the IRS or other Taxing Authority.

                           (v) Huttig will not repurchase stock of Huttig in a
manner contrary to the requirements of section 4.05(1)(b) of Revenue Procedure
96-30 or in a manner contrary to the representations made in connection with the
Ruling Request.

                           (vi) Except as provided in Section 6.2(c), during the
applicable period provided in Section 355(e)(2)(B) of the Code with respect to
the Distribution, Huttig will not enter into any transaction or make any change
in its equity structure (including stock issuances, pursuant to the exercise of
options or otherwise, option grants, the adoption of, or authorization of shares
under, a stock option plan, capital contributions, or acquisitions, but not
including the Distribution) which may cause the Distribution to be treated as
part of a plan pursuant to which one or more persons acquire directly or
indirectly Huttig stock representing a "50-percent or greater interest" in
Huttig within the meaning of Section 355(e)(4)(A) of the Code.

                           (vii) Huttig shall provide to Crane, on the first
business day of every month during the Restricted Period, a certificate
describing any transaction or change in equity structure described in this
Section 5.2.(b) and any option grants which occurred during the preceding month.
Huttig agrees that Crane is to have no liability for any tax resulting from any
action referred to in this Section 5.2.(b) and agrees to indemnify and hold
harmless the Crane Group against any such tax. Huttig shall also bear all costs
incurred in connection with obtaining any opinion of counsel or in connection
with Crane's determination of whether or not to grant any written consent
required under this Section 5.2.(b).

                  (c) Permitted Transactions. Following the Distribution Date,
Huttig and its Affiliates may take any action or engage in conduct otherwise
prohibited by Section 5.2 so long as prior to such action or conduct, as the
case may be, Huttig receives either a ruling from the

                                       14
<PAGE>   16

IRS or an Opinion of Counsel in form and substance reasonably satisfactory to
Crane and upon which Crane can rely to the effect that the proposed action or
conduct, as the case may be, will not cause the Distribution to fail to qualify
for the tax treatment requested in the Ruling Request.

                                   ARTICLE VI
                        TAX INDEMNIFICATION; TAX CONTESTS

         Section 6.1.  INDEMNIFICATION.

                  (a) Huttig Indemnification. Except as otherwise provided in
Section 6.1(b), Huttig and the Huttig Group shall be liable for and shall
indemnify, defend and hold harmless the members of the Crane Group from and
against (A) all Taxes of or attributable to the Huttig Group, the respective
assets or businesses of any member or members of the Huttig Group and any Huttig
Tax Item for any Pre-Distribution Taxable Period, Straddle Period or
Post-Distribution Taxable Period, (B) all liability (as a result of Treasury
Regulation Section 1.1502-6(a) or a comparable state, local or foreign law) for
Income Taxes of any person (other than a member of the Crane Group or the Huttig
Group) which is or has ever been affiliated with any member of the Huttig Group
or with which any member of the Huttig Group joins or has ever joined (or is or
has ever been required to join) in filing any consolidated, combined or unitary
Tax Return for any Pre-Distribution Taxable Period or Straddle Period; provided,
however, if any member of the Crane Group also is or ever has been affiliated
with or files or has ever filed (or is or has ever joined in the filing of) any
such consolidated, combined or unitary Tax Return for the same Pre-Distribution
Period or Straddle Period with any such person, then the amount of the liability
under this provision shall be allocated between such member or members of the
Crane Group and the Huttig Group in accordance with the principles described in
Section 4.1(a), (C) all Taxes (including but not limited to Taxes assessed by
reason of the Distribution failing to qualify for tax-deferred treatment under
Code ss. 355) for any taxable period (whether beginning before, on or after the
Distribution Date) that would not have been payable but for the breach by any
member of the Huttig Group of any representation, warranty or obligation made by
Huttig under this Agreement, the Distribution Agreement or the Ruling Request
and (D) all liability for any reasonable legal, accounting, appraisal,
consulting or similar fees and expenses relating to the foregoing.

                  (b) Crane Indemnification. Except as otherwise provided in
Section 6.1(a), Crane and the Crane Group shall be liable for and shall
indemnify, defend and hold harmless the Huttig Group from and against (A) all
Taxes attributable to the Crane Group, the respective assets or businesses of
any member or members of the Crane Group and any Crane Tax Item for any
Pre-Distribution Taxable Period, Straddle Period or Post-Distribution Taxable
Period, (B) all liability (as a result of Treasury Regulation Section
1.1502-6(a) or a comparable state, local or foreign law) for Income Taxes of any
person (other than a member of the Crane Group or the Huttig Group) which is or
has ever been affiliated with any member of the Crane Group or with which any
member of the Crane Group joins or has ever joined (or is or has ever been
required to join) in filing any consolidated, combined or unitary Tax Return for
any Pre-Distribution Taxable Period or Straddle Period; provided, however, if
any member of the Huttig Group also is

                                       15
<PAGE>   17

or ever has been affiliated with or files or has ever filed (or is or has ever
joined in the filing of) any such consolidated, combined or unitary Tax Return
for the same Pre-Distribution Period or Straddle Period with any such person,
then the amount of the liability under this provision shall be allocated between
such member or members of the Crane Group and the Huttig Group in accordance
with the principles described in Section 4.1(a), (C) all Taxes for any taxable
period (whether beginning before, on or after the Distribution Date) that would
not have been payable but for the breach by any member of the Crane Group of any
representation, warranty or obligation made by Crane under this Agreement, the
Distribution Agreement or the Ruling Request and (D) all liability for any
reasonable legal, accounting, appraisal, consulting or similar fees and expenses
relating to the foregoing.

                  (c) Payments. Subject to Section 6.5(b), any indemnity payment
required to be made pursuant to this Section 6.1 shall be paid within 30 days
after the indemnified party makes written demand upon the indemnifying party,
but in no case earlier than five business days prior to the date on which the
relevant Taxes are required to be paid (or would be required to be paid if no
such Taxes are due) to the relevant Taxing Authority.

         Section 6.2. NOTICE OF INDEMNITY. Whenever any member of the Crane
Group or the Huttig Group, as the case may be, (hereinafter an "Indemnitee")
receives written notice from any Tax Authority or otherwise of any pending or
threatened Tax examination, audit or other administrative or judicial proceeding
(hereinafter a "Tax Contest") which could reasonably be expected to result in a
determination that would increase the liability for any Tax of such member or
any other member of its Group for any Tax Indemnification Period or for any
Post-Tax Indemnification Period or require a payment hereunder to the other
party (hereinafter an "Indemnity Issue"), the Indemnitee shall notify the other
Group (hereinafter the "Indemnitor") of such Indemnity Issue within 30 days of
receipt of such notice. The failure of any Indemnitee to give (or any delay in
giving) such notice shall not relieve any Indemnitor of its obligations under
this Agreement except to the extent that such failure to give (or such delay in
giving) such notice shall have adversely affected the Indemnitor's ability to
defend against, settle, or satisfy any action, suit or proceeding against
Indemnitor, or any damage, loss, claim, or demand for which Indemnitee is
entitled to indemnification from Indemnitor under this Agreement.

         Section 6.3. TAX CONTESTS. To the extent that a Tax Contest relates to
any Taxes for which a member of the Huttig Group is directly liable or has
indemnification obligations hereunder, Huttig shall at its own expense control
the defense and settlement of that portion of such Tax Contest. To the extent
that a Tax Contest relates to any Taxes for which a member of the Crane Group is
directly liable hereunder, Crane shall at its own expense control the defense
and settlement of that portion of such Tax Contest. Provided, however, that the
party in control of the Tax Contest shall in no event take any position in any
such proceeding that would subject the party not in control of the defense to
any civil fraud or any civil or criminal penalty, and provided, further, that
the party in control of the Tax Contest shall not consent, without the prior
written consent of the party not in control of the defense, which prior written
consent shall not be unreasonably withheld, to any change in the treatment of
any Tax Item that in any material

                                       16
<PAGE>   18

respect adversely affects the Tax liability of the party not in control of the
defense for a period for which that party is directly or indirectly liable under
this Agreement.

         Section 6.4.  TIMING ADJUSTMENTS.

                  (a) Timing Differences. If a Tax Audit Proceeding or an
amendment of a Tax Return results in a Timing Difference, and such Timing
Difference results in a decrease in an indemnity obligation Crane or Huttig has,
or otherwise would have had, under Section 6.1 and/or an increase in the amount
of a Tax Refund to which Crane or Huttig is entitled under Section 3.2, then in
each Post-Tax Indemnification Period in which the Crane Group or the Huttig
Group Actually Realizes an Income Tax Detriment, either Crane or Huttig, as the
case may be, shall pay to the other an amount equal to such Income Tax
Detriment; provided, however, that the aggregate payments required to be made
under this Section 6.4(a) with respect to any Timing Difference shall not exceed
the aggregate amount of the Income Tax Benefits realized by the Group from which
such payment is made for all taxable periods and the Group receiving such
payment for all Tax Indemnification Periods as a result of such Timing
Difference. All such payments shall be made within 10 days after the relevant
Income Tax Detriment has been Actually Realized and the Group Actually Realizing
such Income Tax Detriment notifies the other Group, as the case may be.

                  (b) Reverse Timing Differences. If a Tax Audit Proceeding or
an amendment of a Tax Return results in a Reverse Timing Difference, and such
Reverse Timing Difference results in an increase in an indemnity obligation of
Crane or Huttig under Section 6.1 and/or a decrease in the amount of a Tax
Refund to which Crane or Huttig is or would otherwise be entitled to under
Section 3.2, then in each Post-Tax Indemnification Period in which the Crane
Group or the Huttig Group Actually Realizes an Income Tax Benefit, Crane or
Huttig, as the case may be, shall pay to the other an amount equal to such
Income Tax Benefit; provided, however, that the aggregate payments required to
be made under this Section 6.4(b) with respect to any Reverse Timing Difference
shall not exceed the aggregate amount of the Income Tax Detriments realized by
the Group from which such payment is made for all taxable periods and the Group
receiving such payment for all Tax Indemnification Periods as a result of such
Reverse Timing Difference. All such payments shall be made within ten days after
the relevant Income Tax Benefit has been Actually Realized.

         Section 6.5.  PAYMENTS NET OF TAXES.

                  (a) Gross Up and Characterization. The amount of any payment
under this Agreement shall be (i) increased to take account of any net Tax cost
incurred by the recipient thereof as a result of the receipt or accrual of
payments hereunder (grossed-up for such increase) and (ii) reduced to take
account of any net Tax benefit realized by the recipient arising from the
incurrence or payment of any such payment, other than any such net Tax benefit
that the recipient is specifically entitled to retain pursuant to this
Agreement. In computing the amount of any such Tax cost or Tax benefit, the
recipient shall be deemed to recognize all other items of income, gain, loss,
deduction or credit before recognizing any item arising from the receipt or

                                       17
<PAGE>   19

accrual of any payment hereunder. Except as provided in Section 6.5(b), or
unless the parties otherwise agree to an alternative method for determining the
present value of any such anticipated Tax benefit or Tax cost, any payment
hereunder shall initially be made without regard to this Section and shall be
increased or reduced to reflect any such net Tax cost (including gross-up) or
net Tax benefit only after the recipient has Actually Realized such cost or
benefit. It is the intention of the parties that payments made pursuant to this
Agreement are to be treated as relating back to the Contribution and
Distribution as an adjustment to the assets and liabilities contributed
thereunder, and the parties shall not take any position inconsistent with such
intention before any Taxing Authority, except to the extent that a final
determination (as defined in Section 1313 of the Code) with respect to the
recipient party causes any such payment not to be so treated.

                  (b) Time for Payment. Notwithstanding any other provision of
this Agreement, to simplify the administration of this Agreement, the payment of
any amount less than [$150,000] required to be made pursuant to this Agreement
by one party hereto to another party hereto need not be made to such other party
prior to 30 days following the close of the calendar quarter during which such
payment obligation arose.

                  (c) Right to Offset. Any party making a payment under this
Agreement shall have the right to reduce any such payment by any amounts owed to
it by the other party to this Agreement.

                                   ARTICLE VII
                     COOPERATION AND EXCHANGE OF INFORMATION

         Section 7.1. COOPERATION AND EXCHANGE OF INFORMATION. Each party
hereto, on behalf of itself and its Affiliates, agrees to provide the other
parties hereto with such cooperation and information as such other parties shall
reasonably request, and as promptly as practicable, in connection with the
preparation or filing of any Tax Return or claim for or allocation of a Tax
Refund not inconsistent with this Agreement or in conducting any Tax Audit
Proceedings or other proceeding in respect to Taxes or to carry out the
provisions of this Agreement. To the extent necessary to carry out the purposes
of this Agreement and subject to the other provisions of this Agreement, such
cooperation and information shall include without limitation the non-exclusive
designation of an officer of Crane as an officer of Huttig solely for the
purpose of pursuing refund claims, dealing with Taxing Authorities and defending
Tax Audit Proceedings, in each case if such actions relate to Tax matters
pertaining to or arising in the Tax Indemnification Period, as well as promptly
forwarding copies of appropriate notices and forms or other communications
received from or sent to any Taxing Authority and providing copies of all
relevant Tax Returns for the Tax Indemnification Period, together with
accompanying schedules and related workpapers, documents relating to rulings or
other determinations by Taxing Authorities, and records concerning the ownership
and Tax basis of property, which either party may possess and which relate to
the Tax Items on the Tax Returns. Subject to the rights of the Huttig Group
under the other provisions of this Agreement, such officer shall have

                                       18
<PAGE>   20

the authority to execute powers of attorney (including Form 2848) on behalf of
each member of the Huttig Group with respect to Tax Returns and Taxes for the
Tax Indemnification Period. Each party to this Agreement shall make, or shall
cause its Affiliates to make, their employees and facilities available on a
mutually convenient basis to provide an explanation of any documents or
information provided hereunder.

         Section 7.2. RECORD RETENTION. Crane and Huttig agree to (i) retain all
Tax Returns, related schedules and workpapers, and all material records and
other documents as required under Section 6001 of the Code and the regulations
promulgated thereunder relating thereto ("Tax Records") existing on the
Distribution Date or created through the Distribution Date, for 10 years from
the Distribution Date and (ii) allow the other parties to this Agreement and
their representatives (and representatives of any of its Affiliates), at times
and dates reasonably acceptable to the retaining party, to inspect, review and
make copies of such records, and have access to such employees, as Crane and
Huttig may reasonably deem necessary or appropriate from time to time, such
activities to be conducted during normal business hours and without disruption
to the respective business of either party. At the end of the 10-year period
described in clause (i) Crane or Huttig, as the case may be, shall transfer such
records (or cause such records to be transferred) to the other party (at such
other party's sole expense), unless such other party notifies Crane or Huttig,
as the case may be, within 90 days prior to the expiration of the 10-year
period, that such other party does not desire to receive such Tax Records, in
which case Crane or Huttig, as the case may be, may destroy or otherwise dispose
of such undesired documents.

                                  ARTICLE VIII
                                  MISCELLANEOUS

         Section 8.1. ENTIRE AGREEMENT. This Tax Allocation Agreement
constitutes the entire agreement, and supersedes all other prior agreements,
understandings, representations and warranties, both written and oral, among the
parties, with respect to the subject matter hereof and thereof.

         Section 8.2. MODIFICATION OR AMENDMENT. The parties hereto may modify
or amend this Agreement only by written agreement executed and delivered by duly
authorized officers of the respective parties. Anything in this Agreement or the
Distribution Agreement to the contrary notwithstanding, in the event and to the
extent that there shall be a conflict between the provisions of this Agreement
and the Distribution Agreement, the provisions of this Agreement shall control.

         Section 8.3. RESOLUTION OF DISPUTES. Any disputes between the parties
with respect to this Agreement that cannot be resolved by good faith effort by
the parties shall be submitted to the office of Deloitte & Touche LLP
("Deloitte"), which shall render its opinion as to such matters. Deloitte's
determination shall be final and binding on all parties and Deloitte's fees and

                                       19
<PAGE>   21

expenses shall be shared by each of Huttig and Crane in accordance with the
final allocation of the Tax liability in dispute.

         Section 8.4. NOTICES. Any notice, request, instruction or other
communication to be given hereunder by any party to any other party shall be in
writing and shall be deemed to have been duly given (i) on the date of delivery
if delivered personally, or by telecopy or telefacsimile, upon confirmation of
receipt, (ii) on the first business day following the date of dispatch if
delivered by Federal Express or other nationally reputable next-day courier
service, or (iii) on the third business day following the date of mailing if
delivered by registered or certified mail, return receipt requested, postage
prepaid. All notices hereunder shall be delivered as set forth below, or
pursuant to such other instructions as may be designated in writing by the party
to receive such notice:

                  (a)      If to Huttig:

                           Gregory D. Lambert
                           Huttig Sash and Door, Inc.
                           Lakeview Center, Suite 400
                           145 South Outer Forty Road
                           Chesterfield, Missouri 63006-1041

                  (b)      if to Crane:

                           David S. Smith
                           Crane Co.
                           100 First Stamford Place
                           Stamford, Connecticut  06902

         Section 8.5. NO THIRD PARTY BENEFICIARIES. Except as otherwise
expressly provided herein, nothing contained in this Agreement is intended to
confer upon any person or entity other than the parties hereto and their
respective successors and permitted assigns, any benefit, right or remedies
under or by reason of this Agreement.

         Section 8.6. ASSIGNMENT. No party to this Agreement shall convey,
assign or otherwise transfer any of its rights or obligations under this
Agreement without the express written consent of the other parties hereto in
their sole and absolute discretion. Any such conveyance, assignment or transfer
without the express written consent of the other parties shall be void ab
initio. No assignment of this Agreement shall relieve the assigning party of its
obligations hereunder.

         Section 8.7. TERM. This Agreement shall commence on the date of
execution indicated below and shall continue in effect until otherwise agreed to
in writing by Huttig and Crane, or their successors.

                                       20
<PAGE>   22

         Section 8.8. CAPTIONS. The Article, Section and paragraph captions
herein are for convenience of reference only, do not constitute part of this
Agreement and shall not be deemed to limit or otherwise affect any of the
provisions hereof.

         Section 8.9. SEVERABILITY. If any provision of this Agreement or the
application thereof to any person or circumstance is determined by a court of
competent jurisdiction to be invalid, void or unenforceable, the remaining
provisions hereof, or the application of such provision to persons or
circumstances other than those as to which it has been held invalid or
unenforceable, shall remain in full force and effect and shall in no way be
affected, impaired or invalidated thereby, so long as the economic or legal
substance of the transactions contemplated hereby is not affected in any manner
adverse to any party. Upon any such determination, the parties shall negotiate
in good faith in an effort to agree upon a suitable and equitable substitute
provision to effect the original intent of the parties.

         Section 8.10. SPECIFIC PERFORMANCE. In the event of any actual or
threatened default in, or breach of, any of the terms, conditions and provisions
of this Agreement, the party or parties who are or are to be thereby aggrieved
shall have the right of specific performance and injunctive relief giving effect
to its or their rights under this Agreement, in addition to any and all other
rights and remedies at law or in equity, and all such rights and remedies shall
be cumulative. The parties agree that the remedies at law for any breach or
threatened breach, including monetary damages, are inadequate compensation for
any loss and that any defense in any action for specific performance that a
remedy at law would be adequate is waived.

         Section 8.11. COUNTERPARTS. For the convenience of the parties, this
Agreement may be executed in any number of separate counterparts, each such
counterpart being deemed to be an original instrument, and all such counterparts
shall together constitute the same agreement.

         Section 8.12. GOVERNING LAW. This Agreement shall be governed by and
construed in accordance with the internal laws of the State of Delaware
applicable to contracts made and to be performed entirely within such State,
without regard to the conflicts of law principles of such State.

         Section 8.13. AGENT. Any consent rights of members of the Huttig Group
under this Agreement shall be exercised by Huttig on behalf of the Huttig Group,
and any notices given by the Crane Group to Huttig shall be deemed to be given
to each member of the Huttig Group. Any consent rights of the Crane Group under
this Agreement shall be exercised by Crane on behalf of the Crane Group on
behalf of the Crane Group, and any notices given by Huttig to Crane shall be
deemed to be given to each member of the Crane Group.

              [the remainder of this page intentionally left blank]

                                       21
<PAGE>   23

         IN WITNESS WHEREOF, this Agreement has been duly executed and delivered
by the duly authorized officers of the parties hereto on the date first
hereinabove written.

                                      CRANE CO.

                                      By:/s/ R.S. Evans
                                         --------------------------------------
                                           R. S. Evans
                                           Chairman and Chief Executive Officer

                                      HUTTIG BUILDING PRODUCTS, INC.

                                      By: /s/ B.J. Kulpa
                                         --------------------------------------
                                           Barry J. Kulpa
                                           President and Chief Executive Officer

                                       22<PAGE>   1
                                                                    Exhibit 10.2

                           EMPLOYEE MATTERS AGREEMENT

                                     BETWEEN

                                    CRANE CO.

                                       AND

                         HUTTIG BUILDING PRODUCTS, INC.

                          DATED AS OF DECEMBER 16, 1999

<PAGE>   2

                                TABLE OF CONTENTS

<TABLE>
<S>                                                                                                              <C>
ARTICLE I DEFINITIONS.............................................................................................1

   1.1  Adverse Change............................................................................................1
   1.2  Affected Pension Plan Participants........................................................................1
   1.3  Agreement.................................................................................................1
   1.4  ASO Contract..............................................................................................1
   1.5  Award.....................................................................................................1
   1.6  Benefit Liabilities.......................................................................................2
   1.7  Close of the Distribution Date............................................................................2
   1.8  COBRA.....................................................................................................2
   1.9  Code......................................................................................................2
   1.10 Crane Entity..............................................................................................2
   1.11 Crane Hourly Pension Plan.................................................................................2
   1.12 Crane Restricted Stock Plan...............................................................................2
   1.13 Crane Salaried Pension Plan...............................................................................2
   1.14 Crane Savings Plan........................................................................................2
   1.15 Crane Stock Option Plan...................................................................................2
   1.16 Crane Stock Value.........................................................................................2
   1.17 Distribution Agreement....................................................................................2
   1.18 ERISA.....................................................................................................3
   1.19 EVA Plan..................................................................................................3
   1.20 Group Insurance Policies..................................................................................3
   1.21 Group Life Program........................................................................................3
   1.22 Health and Welfare Plans..................................................................................3
   1.23 Huttig Employee Stock Purchase Plan.......................................................................3
   1.24 Huttig Entity.............................................................................................3
   1.25 Huttig Individual.........................................................................................3
   1.26 Huttig Savings & Profit Sharing Plan......................................................................3
   1.28 Huttig Stock Incentive Plan...............................................................................3
   1.29 Huttig Stock Value........................................................................................4
   1.30 Immediately After the Distribution Date...................................................................4
   1.31 IRS.......................................................................................................4
   1.32 Option....................................................................................................4
   1.32 Option Ratio..............................................................................................4
   1.33 Plan......................................................................................................4
   1.34 Ratio.....................................................................................................4

ARTICLE II GENERAL PRINCIPLES.....................................................................................4

   2.1  Assumption of Liabilities.................................................................................4
   2.2  Establishment of Huttig Plans and Related Trusts..........................................................5
</TABLE>

<PAGE>   3

<TABLE>
<S>                                                                                                              <C>
   2.3  Terms of Participation by Huttig Individuals in Huttig Plans..............................................5

ARTICLE III DEFINED BENEFIT PLANS.................................................................................5

   3.1  Freezing of Pension Plan Benefits.........................................................................5
   3.2  Vesting and Crediting Service Under Crane's Pension Plans.................................................6

ARTICLE IV DEFINED CONTRIBUTION PLANS.............................................................................6

   4.1  Savings and Profit Sharing Plan...........................................................................6
   4.2  Other Defined Contribution Plans..........................................................................7

ARTICLE V HEALTH AND WELFARE PLANS................................................................................7

   5.1  General Provisions........................................................................................7
   5.2  Vendor Contracts..........................................................................................8
   5.3  Procedures for Amendments to Plans, Plan Designs, Administrative Practices, and Vendor Contracts..........9
   5.4  COBRA....................................................................................................10
   5.5  Post-Distribution-Transitional Arrangements..............................................................11

ARTICLE VI STOCK AND INCENTIVE COMPENSATION BENEFITS AND EXECUTIVE BENEFITS......................................11

   6.1  Crane Stock-Based Plans..................................................................................11
   6.2  Crane EVA Plan...........................................................................................12
   6.3  Employee Stock Purchase Plan.............................................................................12

ARTICLE VII GENERAL AND ADMINISTRATIVE...........................................................................12

   7.1  Non-Termination of Employment, No Third-Party Beneficiaries..............................................13
   7.2  Beneficiary Designations.................................................................................13
   7.3  Collective Bargaining....................................................................................13
   7.4  Consent of Third Parties.................................................................................13
   7.5  Sharing of Participant Information.......................................................................13

ARTICLE VIII MISCELLANEOUS.......................................................................................14

   8.1  Effect if Distribution Does Not Occur....................................................................14
   8.2  Relationship of Parties..................................................................................14
   8.3  Affiliates...............................................................................................14
   8.4  Governing Law............................................................................................14
   8.5  Entire Agreement, Construction...........................................................................14
   8.6  Expenses.................................................................................................15
   8.7  Notices..................................................................................................15
   8.8  Consent to Jurisdiction..................................................................................16
   8.9  Amendments...............................................................................................16
</TABLE>

                                      -ii-

<PAGE>   4

<TABLE>
<S>                                                                                                             <C>
   8.10 Assignment...............................................................................................16
   8.11 Captions.................................................................................................16
   8.12 Severability.............................................................................................16
   8.13 Parties in Interest......................................................................................17
   8.14 Schedules................................................................................................17
   8.15 Waivers; Remedies........................................................................................17
   8.16 Further Assurances.......................................................................................17
   8.17 Counterparts.............................................................................................17
</TABLE>

                                     -iii-
<PAGE>   5

                           EMPLOYEE MATTERS AGREEMENT

                                December 16, 1999

         The parties to this Employee Matters Agreement, dated as of the date
written above, are Crane Co., a Delaware corporation ("Crane"), and Huttig
Building Products, Inc., a Delaware corporation ("Huttig"). Capitalized terms
used herein and not otherwise defined shall have the respective meanings
assigned to them in Article I hereof or as assigned to them in the Distribution
Agreement (as defined below).

         WHEREAS, the Board of Directors of Crane has determined that it is in
the best interests of Crane and its stockholders to separate Crane and its
subsidiary, Huttig, such that Huttig will be an independent business entity;

         WHEREAS, in furtherance of the foregoing, Crane and Huttig have entered
into a Distribution Agreement, dated as of December 6, 1999 (the "Distribution
Agreement"), and certain other agreements that will govern certain matters
relating to the Distribution and the relationship of Crane and Huttig, and their
respective Subsidiaries following the Distribution; and

         WHEREAS, pursuant to the Distribution Agreement, Crane and Huttig have
agreed to enter into this agreement allocating between them the assets,
liabilities and responsibilities with respect to certain employee compensation
and benefit plans and programs.

         NOW, THEREFORE, the parties, intending to be legally bound, agree as
follows:

                                    ARTICLE I
                                   DEFINITIONS

         For purposes of this Agreement the following terms shall have the
following meanings:

         1.1 Adverse Change is defined in Section 5.3(a).

         1.2 Affected Pension Plan Participants is defined in Section 3.1.

         1.3 Agreement means this Employee Matters Agreement, including all the
Schedules hereto.

         1.4 ASO Contract is defined in Section 5.2(a)(i).

         1.5 Award means an award under the Crane Stock Option Plan, the Crane
Restricted Stock Plan, the EVA Plan or the Huttig Stock Incentive Plan. When
immediately preceded by

                                      -1-
<PAGE>   6

"Crane," the term Award means an award under the applicable Plan described in
this Section 1.5 as established or maintained by Crane. When immediately
preceded by "Huttig," the term Award means an award under the applicable Plan
established or maintained by Huttig.

         1.6 Benefit Liabilities means any Liabilities (as defined in the
Distribution Agreement) relating to any contributions, compensation or other
benefits accrued or payable under any profit sharing, pension, savings, deferred
compensation, fringe benefit, insurance, medical, medical reimbursement, life,
disability, accident, post-retirement health or welfare benefit, stock option,
stock purchase, sick pay, vacation, employment, severance, termination or other
compensation or benefit plan, agreement, contract, policy, trust fund or
arrangement.

         1.7 Close of the Distribution Date means 11:59:59 P.M., Eastern
Standard Time or Eastern Daylight Time (whichever shall then be in effect), on
the Distribution Date.

         1.8 COBRA means the continuation coverage requirements for "group
health plans" under Title X of the Consolidated Omnibus Budget Reconciliation
Act of 1985, as amended, and as codified in Code Section 4980B and ERISA
Sections 601 through 608.

         1.9 Code means the Internal Revenue Code of 1986, as amended, or any
successor federal income tax law. Reference to a specific Code provision also
includes any proposed, temporary, or final regulation in force under that
provision.

         1.10 Crane Entity means any entity that is, at the relevant time, an
Affiliate of Crane, except that, for periods beginning Immediately After the
Distribution Date, the term "Crane Entity" shall not include Huttig or a Huttig
Entity.

         1.11 Crane Hourly Pension Plan means the Crane Co. Master Pension Plan
for Hourly and Certain Non-Bargaining Employees (Plan C), effective December 31,
1987, as amended further effective January 1, 1994.

         1.12 Crane Restricted Stock Plan means the Crane Co. Restricted Stock
Award Plan.

         1.13 Crane Salaried Pension Plan means the Crane Co. Pension Plan for
Non-Bargaining Employees, effective December 31, 1987, as amended further
effective January 1, 1994.

         1.14 Crane Savings Plan means the Crane Co. Savings and Investment
Plan, effective January 1, 1989, as amended further effective June 1, 1997.

         1.15 Crane Stock Option Plan means the Crane Co. Stock Option Plan.

         1.16 Crane Stock Value means the average of the high and low per-share
prices of the Crane Common Stock, regular way, as reported on the New York Stock
Exchange - Composite Transactions Tape on the trading day immediately prior to
the Distribution Date.

         1.17 Distribution Agreement is defined in the third paragraph of the
preamble of this Agreement.

                                      -2-
<PAGE>   7

         1.18 ERISA means the Employee Retirement Income Security Act of 1974,
as amended. Reference to a specific provision of ERISA also includes any
proposed, temporary, or final regulation in force under that provision.

         1.19 EVA Plan, when immediately preceded by "Crane," means the Crane
Co. Economic Value Added Incentive Compensation Plan for Executive Officers.
When immediately preceded by "Huttig," EVA Plan means the Economic Value Added
Incentive Compensation Plan to be established by Huttig pursuant to Section 2.2.

         1.20 Group Insurance Policies is defined in Section 5.2(b)(i).

         1.21 Group Life Program, when immediately preceded by "Crane," means
the Crane Co. group life programs, policies and arrangements. When immediately
preceded by "Huttig," Group Life Program means the life insurance programs,
policies and arrangements to be established by Huttig pursuant to Section 2.2
that correspond to the respective Crane Group Life Programs.

         1.22 Health and Welfare Plans, when immediately preceded by "Crane,"
means the health and welfare plans listed on Schedule 1.22 established and
maintained by Crane for the benefit of employees and retirees of Crane and
certain Crane Entities, and such other welfare plans or programs as may apply to
such employees and retirees as of the Distribution Date. When immediately
preceded by "Huttig," Health and Welfare Plans means the health and welfare
plans to be established by Huttig pursuant to Section 2.2 that correspond to the
respective Crane Health and Welfare Plans.

         1.23 Huttig Employee Stock Purchase Plan means the employee stock
purchase plan to be established by Huttig pursuant to Section 2.2.

         1.24 Huttig Entity means any Person that is, at the relevant time, a
Subsidiary of Huttig or is otherwise controlled, directly or indirectly, by
Huttig.

         1.25 Huttig Individual means any individual (i) who, Immediately After
the Distribution Date, is either actively employed by or on leave of absence
from Huttig or a Huttig Entity, or (ii) whose last employment within the
Pre-Distribution Group (as defined in the Distribution Agreement) was with
Huttig or a Huttig Entity.

         1.26 Huttig Savings & Profit Sharing Plan means the defined
contribution plan established by Huttig pursuant to Section 2.2 and Article IV.

         1.27 Huttig Stock Incentive Plan means the plan or program established
by Huttig pursuant to Section 2.2 consisting of a stock option plan that
corresponds to the Crane Stock Option Plan and a restricted stock award plan
that corresponds to the Crane Restricted Stock Plan.

                                      -3-
<PAGE>   8

         1.28 Huttig Stock Value means the average of the high and low per-share
prices of the Huttig Common Stock as reported on the New York Stock Exchange on
the first trading day after the Distribution Date.

         1.29 Immediately After the Distribution Date means 12:00 A.M., Eastern
Standard Time or Eastern Daylight Time (whichever shall then be in effect), on
the day after the Distribution Date.

         1.30 IRS means the Internal Revenue Service.

         1.31 Option, when immediately preceded by "Crane," means an option to
purchase Crane Common Stock pursuant to the Crane Stock Option Plan. When
immediately preceded by "Huttig," Option means an option to purchase Huttig
Common Stock pursuant to the Huttig Stock Incentive Plan.

         1.32 Option Ratio means the amount obtained by dividing the Crane Stock
Value by the average of the high and low sales prices of the Crane Common Stock
on the first trading day after the Distribution Date.

         1.33 Plan, when immediately preceded by "Crane" or "Huttig," means any
plan, policy, program, payroll practice, on-going arrangement, contract, trust,
insurance policy or other agreement or funding vehicle providing benefits to
employees or former employees of Crane or a Crane Entity, or Huttig or a Huttig
Entity, as applicable.

         1.34 Ratio means the amount obtained by dividing the Crane Stock Value
by the Huttig Stock Value.

                                   ARTICLE II
                               GENERAL PRINCIPLES

         2.1 Assumption of Liabilities. Except as otherwise expressly provided
in Article III, Huttig hereby assumes and agrees to pay, perform, fulfill and
discharge, in accordance with their respective terms, all of the following
(regardless of when or where such Benefit Liabilities arose or arise or were or
are incurred): (i) all Benefit Liabilities to or relating to Huttig Individuals,
and their respective dependents and beneficiaries, in each case relating to,
arising out of or resulting from employment by Crane, a Crane Entity, Huttig or
a Huttig Entity before the Distribution Date (including Benefit Liabilities
under Crane Plans and Huttig Plans); (ii) all other Benefit Liabilities to or
relating to Huttig Individuals, and their respective dependents and
beneficiaries, to the extent relating to, arising out of or resulting from
future, present or former employment with Huttig or a Huttig Entity (including
Benefit Liabilities under Crane Plans and Huttig Plans); (iii) all Benefit
Liabilities relating to, arising out of or resulting from any other actual or
alleged employment relationship with Huttig or a Huttig Entity; (iv) all Benefit
Liabilities relating to, arising out of or resulting from the imposition of
withdrawal liability under Subtitle E of Title IV of ERISA as a result of a
complete or partial withdrawal of any Crane Entity from a "multiemployer plan"
within the meaning of ERISA Section 4021 which occurs solely as a result of the
Distribution; and (v) all other Benefit Liabilities relating to, arising out of
or resulting from

                                      -4-
<PAGE>   9

obligations, liabilities and responsibilities expressly assumed or retained by
Huttig, a Huttig Entity, or a Huttig Plan pursuant to this Agreement.

         2.2 Establishment of Huttig Plans and Related Trusts. Effective prior
to or Immediately After the Distribution Date, Huttig shall adopt, or cause to
be adopted, the Huttig Savings and Profit Sharing Plan and its related trust,
the Huttig Employee Stock Purchase Plan, the Huttig Stock Incentive Plan, the
Huttig EVA Plan and the Huttig Health and Welfare Plans for the benefit of the
Huttig Individuals and other current and future employees of Huttig and the
Huttig Entities. Subject to the provisions of Section 4.1 regarding the Huttig
Savings and Profit Sharing Plan, Section 6.2 regarding the Huttig EVA Plan,
Section 6.3 regarding the Huttig Employee Stock Purchase Plan and Section 5.1(b)
regarding the Huttig Health and Welfare Plans, the foregoing Huttig Plans as in
effect Immediately After the Distribution Date shall be substantially identical
in all material respects to the corresponding Crane Plans as in effect as of the
Distribution Date.

         2.3 Terms of Participation by Huttig Individuals in Huttig Plans. The
Huttig Plans shall be, with respect to Huttig Individuals, in all respects the
successors in interest to, and shall not provide benefits that duplicate
benefits provided by, the corresponding Crane Plans. Crane and Huttig shall
agree on methods and procedures, including amending the respective Plan
documents and/or requesting approvals or consents of Huttig Individuals where
the parties deem appropriate, to prevent Huttig Individuals from receiving
duplicative benefits from the Crane Plans and the Huttig Plans. With respect to
Huttig Individuals, each Huttig Plan shall provide that all service, all
compensation and all other benefit-affecting determinations that, as of the
Close of the Distribution Date, were recognized under the corresponding Crane
Plan shall, as of Immediately After the Distribution Date, receive full
recognition, credit, and validity and be taken into account under such Huttig
Plan to the same extent as if such items occurred under such Huttig Plan, except
to the extent that duplication of benefits would result.

                                  ARTICLE III
                             DEFINED BENEFIT PLANS

         3.1 Freezing of Pension Plan Benefits. Effective Immediately After the
Distribution Date, the accrued benefits with respect to Huttig Individuals who,
as of the Distribution Date, were participants under the Crane Salaried Pension
Plan or the Crane Hourly Pension Plan (collectively, the "Affected Pension Plan
Participants") shall be frozen and the Affected Pension Plan Participants shall
not accrue any additional benefits from and after the Distribution Date under
the Crane Salaried Pension Plan or the Crane Hourly Pension Plan, as the case
may be. The assets and Benefit Liabilities with respect to the Affected Pension
Plan Participants, determined as of the Distribution Date, shall be retained by
the applicable Crane Plan and its related trust and paid therefrom when due
under the terms of the applicable Crane Plan.

         3.2 Vesting and Crediting Service Under Crane's Pension Plans.
Effective Immediately After the Distribution Date, notwithstanding anything
contained in the Crane

                                      -5-
<PAGE>   10

Salaried Pension Plan or the Crane Hourly Pension Plan to the contrary, the
Affected Pension Plan Participants shall be fully vested in their respective
accrued benefits under the Crane Salaried Pension Plan or the Crane Hourly
Pension Plan, as the case may be. Affected Pension Plan Participants shall
continue to receive service credit for retirement benefit eligibility purposes
under the applicable Crane Plan for service with Huttig after the Distribution
Date.

                                   ARTICLE IV
                           DEFINED CONTRIBUTION PLANS

         4.1 Savings and Profit Sharing Plan.

         (a) Establishment of Savings and Profit Sharing Plan and Trust. The
Huttig Savings and Profit Sharing Plan, established by Huttig pursuant to
Section 2.2, (i) shall be a qualified defined contribution plan within the
meaning of Code Section 401(a), (ii) except as provided under Section 4.1(c),
shall contain provisions, terms and conditions that are in the aggregate
substantially similar to the provisions, terms and conditions of the Crane
Savings Plan, and (iii) shall provide coverage from and after the Distribution
Date with respect to Huttig Individuals. The trust related to the Huttig Savings
and Profit Sharing Plan, established by Huttig pursuant to Section 2.2, shall be
exempt from taxation under Code Section 501(a).

         (b) Assumption of Liabilities and Transfer of Assets.

                  (i) Effective Immediately After the Distribution Date: (A) the
Huttig Savings and Profit Sharing Plan shall assume and be solely responsible
for all Benefit Liabilities to or relating to Huttig Individuals under the Crane
Savings Plan, and (B) Crane shall cause an amount equal to the aggregate account
balances of the Huttig Individuals participating under the Crane Savings Plan,
whether such amounts are vested or unvested under the terms of the Crane Savings
Plan, which are held by the related trust as of the Close of the Distribution
Date to be transferred to the Huttig Savings and Profit Sharing Plan, and its
related trust, or such other qualified plan and trust designated by Huttig, and
Huttig shall cause such transferred accounts to be accepted by such plan and
trust. In Crane's sole and absolute discretion, the amount so transferred may be
in cash or in kind or a combination thereof; provided, however, that the
following shall be transferred in kind: (A) shares of Crane Common Stock and
shares of Huttig Common Stock allocated to participants' accounts as a result of
the Distribution; and (B) all promissory notes reflecting participant loans to
Huttig Individuals under the Crane Savings Plan outstanding as of the
Distribution Date.

                  (ii) If any benefit with respect to a Huttig Individual under
the Crane Savings Plan is subject to a qualified domestic relations order at the
time of transfer, all documentation concerning such qualified domestic relations
order shall be assigned to the Huttig Savings and Profit Sharing Plan.

         (c) Retirement Benefit Feature of Savings and Profit Sharing Plan. The
Huttig Savings and Profit Sharing Plan shall contain provisions regarding
employer profit sharing

                                      -6-
<PAGE>   11

contributions that, in the sole discretion of Huttig, are appropriate retirement
benefit provisions with respect to Huttig Individuals.

         (d) Vesting. Effective Immediately After the Distribution Date,
participants in the Huttig Savings and Profit Sharing Plan shall be fully vested
in any amounts transferred with respect to such participants from the Crane
Savings Plan and its related trust under Section 4.1(b).

         4.2 Other Defined Contribution Plans. Effective Immediately After the
Distribution Date, Huttig shall retain sole responsibility for sponsorship and
administration of the Huttig Sash & Door Company Compensation and Investment
Plan (formerly known as the Palmer G. Lewis 401(k) Plan) (the "Lewis 401(k)
Plan"), the Huttig Sash & Door Company Tax-Sheltered Investment Plan (formerly
known as the American Pine Products 401(k) Profit Sharing Plan) (the "Prineville
401(k) Plan") and the Whittier-Ruhle Millwork Company's Employees' Savings and
Investment Plan (the "Whittier-Ruhle Plan"), including all Benefit Liabilities
arising under those plans prior to or after the Distribution Date, and Crane
shall have no responsibility or liability with respect to the Lewis 401(k) Plan,
the Prineville 401(k) Plan or the Whittier-Ruhle Plan.

                                    ARTICLE V
                            HEALTH AND WELFARE PLANS

         5.1 General Provisions.

         (a) Assumption of Health and Welfare Plan Liabilities. Immediately
After the Distribution Date, all Benefit Liabilities to or relating to Huttig
Individuals under the Crane Health and Welfare Plans shall cease to be Benefit
Liabilities of the Crane Health and Welfare Plans and shall be assumed by the
corresponding Huttig Health and Welfare Plans.

         (b) Postretirement Medical and Life Insurance Benefits.

                  (i) Effective Immediately After the Distribution Date, Huttig
may, but shall not be required to, alter or amend the postretirement medical and
life insurance benefits offered, or the manner in which such benefits are
offered, to Huttig Individuals as follows (subject to all terms and conditions
of the applicable Huttig Plan): (A) Huttig shall continue to contribute 50% of
the applicable premium or cost of coverage for postretirement medical benefits
for Huttig Individuals who are currently retired and participating in such
coverage as of the Distribution Date, such contribution to continue in each case
only until such Huttig Individual attains age 65; (B) Huttig shall make no
contribution regarding the premium or other cost of coverage for postretirement
life insurance benefits for Huttig Individuals who are currently retired and
participating in such coverage as of the Distribution Date; (C) Huttig shall
make no contribution regarding the premium or other cost of coverage for
postretirement medical or life insurance benefits for Huttig Individuals who are
active employees of Huttig or a Huttig Entity Immediately After the Distribution
Date and who commenced employment with Huttig or a Huttig Entity prior to 1992;
and (D) Huttig shall not offer postretirement medical or life

                                      -7-
<PAGE>   12

insurance benefits to Huttig Individuals who are active employees of Huttig or a
Huttig Entity Immediately After the Distribution Date and who commenced
employment with Huttig or a Huttig Entity after 1991.

                  (ii) Crane agrees and acknowledges that any alteration or
amendment by Huttig of the postretirement medical and life insurance benefits
offered under one or more of the Huttig Health and Welfare Plans as described in
Section 5.1(b)(i) shall not be considered or otherwise deemed to be an Adverse
Change as defined under Section 5.3(a). Notwithstanding the foregoing, Huttig
acknowledges that any decision or action with respect to postretirement medical
or life insurance benefits offered under any Huttig Plan after the Distribution
Date shall be in the sole discretion of Huttig and Huttig shall be solely
responsible for such decision or action. Furthermore, Huttig acknowledges that
Crane shall in no way be considered or deemed to have consented to or agreed to
such decision or action of Huttig.

         5.2 Vendor Contracts.

         (a) Third-Party ASO Contracts.

                  (i) Crane shall use its reasonable efforts to amend each
administrative services only contract with a third-party administrator that
relates to any of the Crane Health and Welfare Plans (an "ASO Contract") in
existence as of the date of this Agreement to permit Huttig to participate in
the terms and conditions of such ASO Contract from Immediately After the
Distribution Date until the expiration of the financial fee guarantees in effect
under such ASO Contract as of the Close of the Distribution Date. Crane shall
use its reasonable efforts to cause all ASO Contracts into which Crane enters
after the date of this Agreement but before the Close of the Distribution Date
to allow Huttig to participate in the terms and conditions thereof effective
Immediately After the Distribution Date on the same basis as Crane.

                  (ii) Crane shall have the right to determine, and shall
promptly notify Huttig of, the manner in which Huttig's participation in the
terms and conditions of ASO Contracts as set forth above shall be effectuated.
The permissible ways in which Huttig's participation may be effectuated include
automatically making Huttig a party to the ASO Contracts or obligating the third
party to enter into a separate ASO Contract with Huttig providing for the same
terms and conditions as are contained in the ASO Contracts to which Crane is a
party. Such terms and conditions shall include the financial and termination
provisions, performance standards, methodology, auditing policies, quality
measures, reporting requirements and target claims. Huttig hereby authorizes
Crane to act on its behalf to extend to Huttig the terms and conditions of the
ASO Contracts. Huttig shall fully cooperate with Crane in such efforts, and
Huttig shall not perform any act, including discussing any alternative
arrangements with any third party, that would prejudice Crane's efforts.

         (b) Group Insurance Policies.

                  (i) This Section 5.2(b) applies to group insurance policies
not subject to allocation or transfer pursuant to the foregoing provisions of
this Article V ("Group Insurance Policies").

                                      -8-
<PAGE>   13

                  (ii) Crane shall use its reasonable efforts to amend each
Group Insurance Policy in existence as of the date of this Agreement for the
provision or administration of benefits under the Crane Health and Welfare Plans
to permit Huttig to participate in the terms and conditions of such policy from
Immediately After the Distribution Date until the expiration of the financial
fee and rate guarantees in effect under such Group Insurance Policy as of the
Close of the Distribution Date. Crane shall use its reasonable efforts to cause
all Group Insurance Policies into which Crane enters or which Crane renews after
the date of this Agreement but before the Close of the Distribution Date to
allow Huttig to participate in the terms and conditions thereof effective
Immediately After the Distribution Date on the same basis as Crane.

                  (iii) Huttig's participation in the terms and conditions of
each such Group Insurance Policy shall be effectuated by obligating the
insurance company that issued such insurance policy to Crane to issue one or
more separate policies to Huttig. Such terms and conditions shall include the
financial and termination provisions, performance standards and target claims.
Huttig hereby unconditionally and irrevocably authorizes Crane to act on its
behalf to extend to Huttig the terms and conditions of such Group Insurance
Policies. Huttig shall fully cooperate with Crane in such efforts, and Huttig
shall not perform any act, including discussing any alternative arrangements
with third parties, that would prejudice Crane's efforts.

         (c) Effect of Change in Rates. Crane and Huttig shall use their
reasonable efforts to cause each of the insurance companies, point-of-service
vendors and third-party administrators providing services and benefits under the
Crane Health and Welfare Plans and the Huttig Health and Welfare Plans to
maintain the premium and/or administrative rates based on the aggregate number
of participants in both the Crane Health and Welfare Plans and the Huttig Health
and Welfare Plans through the expiration of the financial fee or rate guarantees
in effect as of the Close of the Distribution Date under the respective ASO
Contracts and Group Insurance Policies. To the extent they are not successful in
such efforts, Crane and Huttig shall each bear the revised premium or
administrative rates attributable to the individuals covered by their respective
Health and Welfare Plans.

         5.3 Procedures for Amendments to Plans, Plan Designs, Administrative
Practices, and Vendor Contracts.

         (a) Changes in Vendor Contracts, Group Insurance Policies, Plan Design,
and Administration Practices and Procedures. From Immediately After the
Distribution Date through the expiration of the respective financial fee or rate
guarantees in effect as of the Close of the Distribution Date under the
applicable ASO Contract or Group Insurance Policy, any party must comply with
Section 5.3(b) if that party seeks to materially amend, modify, alter or take
other action which would have a material effect on, any of the following items
that, in the reasonable opinion of the other party, shall have a material
adverse impact on one or more of the other party's Health and Welfare Plans
(each such modification, an "Adverse Change"): (i) the termination date,
administration, or operation of (A) an ASO contract between Crane or Huttig and
a third-party administrator, or (B) a Group Insurance Policy issued to Crane or
Huttig, in each case, the material terms and conditions of which contracts and
policies are extended to

                                      -9-
<PAGE>   14

Huttig or to which Huttig becomes a party pursuant to Section 5.2; (ii) the
design of either a Crane Health and Welfare Plan or a Huttig Health and Welfare
Plan; or (iii) the financing, operation, administration or delivery of benefits
under either a Crane Health and Welfare Plan or a Huttig Health and Welfare
Plan.

         (b) Procedure for Implementing Changes. Unless the other party consents
in writing, neither Crane nor Huttig shall make any Adverse Change unless the
party intending to make the Adverse Change has: (i) given the other party
written notice of the intention to make the Adverse Change, accompanied by a
written description of the Adverse Change, at least 30 days in advance of the
proposed effective date of the Adverse Change; (ii) agreed to bear all of the
costs of implementing the Adverse Change which are incurred by all third-party
administrators, insurance companies and other vendors and passed through to one
or both of the parties; and (iii) certified to the other party, and provided to
the other party the written concurrence of each third-party administrator,
insurance company or other vendor associated with or performing services in
connection with the Health and Welfare Plan affected by the Adverse Change, that
(after taking into account the effect of clause (ii)) the proposed Adverse
Change will have no material adverse impact (financial, administrative or
otherwise) on the corresponding Health and Welfare Plan sponsored by the other
party.

         5.4 COBRA. Effective Immediately After the Distribution Date, Huttig
shall solely be responsible for administering compliance with the health care
continuation coverage requirements of COBRA with respect to Huttig Individuals
under the Huttig Health and Welfare Plans.

         5.5 Post-Distribution-Transitional Arrangements.

         (a) Continuance of Elections, Co-Payments and Maximum Benefits.

                  (i) Huttig shall cause the Huttig Health and Welfare Plans to
recognize and maintain all coverage and contribution elections made by Huttig
Individuals under the Crane Health and Welfare Plans and apply such elections
under the Huttig Health and Welfare Plans for the remainder of the period or
periods for which such elections are by their terms applicable. The transfer or
other movement of employment from Crane to Huttig at any time before the Close
of the Distribution Date shall neither constitute nor be treated as a "status
change" under the Crane Health and Welfare Plans or the Huttig Health and
Welfare Plans.

                  (ii) Huttig shall cause the Huttig Health and Welfare Plans to
recognize and give credit for (A) all amounts applied to deductibles,
out-of-pocket maximums, and other applicable benefit coverage limits with
respect to which such expenses have been incurred by Huttig Individuals under
the Crane Health and Welfare Plans for the remainder of the year in which the
Distribution occurs, and (B) all benefits paid to Huttig Individuals under the
Crane Health and Welfare Plans for purposes of determining when such persons
have reached their lifetime maximum benefits under the Huttig Health and Welfare
Plans.

                  (iii) Huttig shall use reasonable efforts to (A) provide
coverage to Huttig Individuals under the Huttig Group Life Program without the
need to undergo a physical

                                      -10-
<PAGE>   15

examination or otherwise provide evidence of insurability, and (B) recognize and
maintain all irrevocable assignments and accelerated benefit option elections
made by Huttig Individuals under the Crane Group Life Program.

         (b) Health and Welfare Plans Subrogation Recovery. After the Close of
the Distribution Date, Crane shall pay to Huttig any amounts Crane recovers from
time to time through subrogation or otherwise for claims incurred by or
reimbursed to any Huttig Individual. If Huttig recovers any amounts through
subrogation or otherwise for claims incurred by or reimbursed to employees and
former employees of Crane or a Crane Entity and their respective beneficiaries
and dependents (other than Huttig Individuals), Huttig shall pay such amounts to
Crane.

                                   ARTICLE VI
                    STOCK AND INCENTIVE COMPENSATION BENEFITS
                             AND EXECUTIVE BENEFITS

         6.1 Crane Stock-Based Plans.

         (a) Stock Options. Effective as soon as practicable after the
Distribution Date, Crane shall cause each Crane Option that is outstanding as of
the Close of the Distribution Date and is held by a Huttig Individual to be
adjusted to reflect the effect of the Distribution (each such Option shall be
called an "Adjusted Option"). Each Adjusted Option shall provide for the option
to purchase a number of shares of Crane Common Stock equal to the number of
shares of Crane Common Stock subject to the original Crane Option as of the
Close of the Distribution Date, multiplied by the Option Ratio, and then rounded
to the nearest whole share. The per-share exercise price of such Adjusted Option
shall equal the per-share exercise price of the original Crane Option as of the
Close of the Distribution Date divided by the Option Ratio. Each Adjusted Option
shall otherwise have the same terms and conditions as were applicable to the
original Crane Option as of the Close of the Distribution Date. Solely for
purposes of this Section 6.1(a), any Huttig Individual holding a Crane Option
(or an Adjusted Option) shall be considered to have incurred a termination of
employment with Crane for a reason other than (i) retirement, death or
disability or (ii) after a change in control for purposes of the Crane Stock
Option Plan and any option agreement or other contract evidencing the grant or
award of a Crane Option to such Individual. Such Crane Option (or Adjusted
Option) shall be exercisable and subject to termination as provided in such
agreement or contract.

                                      -11-
<PAGE>   16

         (b) Restricted Stock. Effective as soon as administratively practicable
after the Distribution Date, Huttig shall cause the Restricted Stock Award held
by Mr. Barry Kulpa under the Crane Restricted Stock Plan as of the Distribution
Date, to the extent that vesting of shares granted under that Award is not
dependent upon any performance or market value criteria (i.e. time-based
restrictions), to be converted to a Restricted Stock Award under the Huttig
Stock Incentive Plan by multiplying the number of shares of Crane Restricted
Stock by the Ratio, and then rounding the product to the nearest whole share.
Such Huttig Restricted Stock Award shall have the same terms and conditions as
were applicable to the corresponding Crane Restricted Stock Award. Crane shall
use reasonable efforts to cancel any certificate in Mr. Kulpa's name with
respect to restricted shares of Crane Common Stock. To the extent that Mr.
Kulpa's Restricted Stock Award is not subject to conversion under the prior
provisions of this Section 6.1(b) (i.e. performance-based restrictions), such
Restricted Stock Award shall be canceled.

         6.2 Crane EVA Plan. Effective Immediately After the Distribution Date,
Huttig shall assume all Benefit Liabilities to or relating to Huttig Individuals
under the Crane EVA Plan. The Huttig EVA Plan shall reflect appropriate
adjustments, as determined by Huttig in its sole discretion, of the cost of
capital and other factors that shall be applicable to the benefits under the
Huttig EVA Plan after the Distribution Date.

         6.3 Employee Stock Purchase Plan. The Huttig Employee Stock Purchase
Plan, established pursuant to Section 2.2, shall provide employees of Huttig or
a Huttig Entity after the Distribution Date with an opportunity to purchase
Huttig Common Stock at current market prices.

                                   ARTICLE VII
                           GENERAL AND ADMINISTRATIVE

         7.1 Non-Termination of Employment, No Third-Party Beneficiaries. Except
as expressly provided herein, no provision of this Agreement or the Distribution
Agreement shall be construed to create any right, or accelerate entitlement, to
any compensation or benefit whatsoever on the part of any Huttig Individual or
other future, present or former employee of Crane, a Crane Entity, Huttig, or a
Huttig Entity under any Crane Plan or Huttig Plan or otherwise. Without limiting
the generality of the foregoing: (i) except as expressly provided in Section
6.1(a), the Distribution shall not cause any employee to be deemed to have
incurred a termination of employment which entitles such individual to the
commencement of benefits under any of the Crane Plans, any of the Huttig Plans,
or any individual agreements; and (ii) except as expressly provided in this
Agreement, nothing in this Agreement shall preclude Huttig, at any time after
the Close of the Distribution Date, from amending, merging, modifying,
terminating, eliminating, reducing, or otherwise altering in any respect any
Huttig Plan, any benefit under any Plan or any trust, insurance policy or
funding vehicle related to any Huttig Plan.

                                      -12-
<PAGE>   17

         7.2 Beneficiary Designations. All beneficiary designations made by
Huttig Individuals for Crane Plans shall be transferred to and be in full force
and effect under the corresponding Huttig Plans until such beneficiary
designations are replaced or revoked by the Huttig Individual who made the
beneficiary designation.

         7.3 Collective Bargaining. To the extent any provision of this
Agreement is contrary to the provisions of any collective bargaining agreement
to which Crane or any Affiliate of Crane is a party, the terms of such
collective bargaining agreement shall prevail. Should any provisions of this
Agreement be deemed to relate to a topic determined by an appropriate authority
to be a mandatory subject of collective bargaining, Crane or Huttig may be
obligated to bargain with the union representing affected employees concerning
those subjects.

         7.4 Consent of Third Parties. If any provision of this Agreement is
dependent on the consent of any third party (such as a vendor or a union) and
such consent is withheld, Crane and Huttig shall use their reasonable efforts to
implement the applicable provisions of this Agreement to the full extent
practicable. If any provision of this Agreement cannot be implemented due to the
failure of such third party to consent, Crane and Huttig shall negotiate in good
faith to implement the provision in a mutually satisfactory manner. The phrase
"reasonable efforts" as used herein shall not be construed to require the
incurrence of any non-routine or unreasonable expense or liability or the waiver
of any right.

         7.5 Sharing of Participant Information. Crane and Huttig shall share,
Crane shall cause each applicable Crane Entity to share, and Huttig shall cause
each applicable Huttig Entity to share, with each other and their respective
agents and vendors (without obtaining releases) all participant information
necessary for the efficient and accurate administration of each of the Crane
Plans and the Huttig Plans. Crane and Huttig and their respective authorized
agents shall, subject to applicable laws on confidentiality, be given reasonable
and timely access to, and may make copies of, all information relating to the
subjects of this Agreement in the custody of the other party, to the extent
necessary for such administration. Until December 31, 2000, or such other date
as the parties may mutually agree, all participant information shall be provided
in a manner and medium that is compatible with the data processing systems of
Crane as in effect on the Close of the Distribution Date, unless otherwise
agreed to by Crane and Huttig.

                                  ARTICLE VIII
                                  MISCELLANEOUS

         8.1 Effect if Distribution Does Not Occur. If the Distribution does not
occur, then all actions and events that are, under this Agreement, to be taken
or occur effective as of the Close of the Distribution Date, Immediately After
the Distribution Date, or otherwise in connection with the Distribution, shall
not be taken or occur except to the extent specifically agreed by Huttig and
Crane.

         8.2 Relationship of Parties. Nothing in this Agreement shall be deemed
or construed by the parties or any third party as creating the relationship of
principal and agent, partnership or

                                      -13-
<PAGE>   18

joint venture between the parties, it being understood and agreed that no
provision contained herein, and no act of the parties, shall be deemed to create
any relationship between the parties other than the relationship set forth
herein.

         8.3 Affiliates. Each of Crane and Huttig shall cause to be performed,
and hereby guarantees the performance of, all actions, agreements and
obligations set forth in this Agreement to be performed by a Crane Entity or a
Huttig Entity, respectively.

         8.4 Governing Law. To the extent not preempted by applicable federal
law, this Agreement shall be governed by, construed and interpreted in
accordance with the laws of the State of Delaware, irrespective of the choice of
laws principles of the state of Delaware, as to all matters, including matters
of validity, construction, effect, performance and remedies.

         8.5 Entire Agreement, Construction. This Agreement and the Ancillary
Agreements, including, without limitation, any annexes, schedules and exhibits
hereto or thereto, and other agreements and documents referred to herein and
therein, will together constitute the entire agreement between the parties with
respect to the subject matter hereof and thereof and will supersede all prior
negotiations, agreements and understandings of the parties of any nature,
whether oral or written, with respect to such subject matter. In the event and
to the extent that there is a conflict between the provisions of this Agreement
and the provisions of the Distribution Agreement, the Transition Services
Agreement or the Tax Allocation Agreement, the provisions of this Agreement
shall control.

         8.6 Expenses. Except as expressly set forth in this Agreement, all
costs and expenses incurred through the Close of the Distribution Date with
respect to any employee matters described herein shall be charged to and paid by
Crane. Except as otherwise set forth in this Agreement, all costs and expenses
incurred following the Distribution Date with respect to any employee matters
described herein shall be charged to and paid by the party for whose benefit the
expenses are incurred, with any expenses that cannot be allocated on such basis
to be split equally between the parties.

         8.7 Notices. All notices, requests, claims, demands and other
communications required or permitted to be given hereunder will be in writing
and will be delivered by hand or telecopied or sent, postage prepaid, by
registered, certified or express mail or reputable overnight courier service and
will be deemed given when so delivered by hand or telecopied, or three business
days after being so mailed (one business day in the case of express mail or
overnight courier service). All such notices, requests, claims, demands and
other communications will be addressed as set forth below, or pursuant to such
other instructions as may be designated in writing by the party to receive such
notice:

                  (a)      If to Crane:

                           Crane Co.
                           100 First Stamford Place
                           Stamford, CT  06902
                           Attention: Augustus I. duPont
                           Telecopy:  (203) 363-7350

                                      -14-
<PAGE>   19

                  (b)      If to Huttig:

                           Huttig Building Products, Inc.
                           14500 South Outer Forty Road
                           Suite 400
                           Chesterfield, MO  63017
                           Attention: Gregory D. Lambert
                           Telecopy:  (314) 216-2601

         8.8 Consent to Jurisdiction. Each of Crane and Huttig irrevocably
submits to the exclusive jurisdiction of (i) the Court of Chancery in and for
the State of Delaware and the Superior Court in and for the State of Delaware
and (ii) the United States District Court for the District of Delaware, for the
purposes of any suit, action or other proceeding arising out of this Agreement
or any transaction contemplated thereby (and agrees not to commence any action,
suit or proceeding relating thereto except in such courts). Each of Crane and
Huttig further agrees that service of any process, summons, notice or document
hand delivered or sent by U.S. registered mail to such party's respective
address set forth in Section 8.6 will be effective service of process for any
action, suit or proceeding in Delaware with respect to any matters to which it
has submitted to jurisdiction as set forth in the immediately preceding
sentence. Each of Crane and Huttig irrevocably and unconditionally waives any
objection to the laying of venue of any action, suit or proceeding arising out
of this Agreement in (i) the Court of Chancery in and for the State of Delaware
and the Superior Court in and for the State of Delaware or (ii) the United
States District Court for the District of Delaware, and hereby further
irrevocably and unconditionally waives and agrees not to plead or claim in any
such court that any such action, suit or proceeding brought in any such court
has been brought in an inconvenient forum.

         8.9 Amendments. This Agreement cannot be amended, modified or
supplemented except by a written agreement executed by Crane and Huttig.

         8.10 Assignment. Neither party to this Agreement will convey, assign or
otherwise transfer any of its rights or obligations under this Agreement without
the prior written consent of the other party in its sole and absolute
discretion, except that other than as expressly provided herein any party may
(without obtaining any consent) assign any of its rights hereunder to a
successor to all or any part of its business. Any such conveyance, assignment or
transfer requiring the prior written consent of another party which is made
without such consent will be void ab initio. No assignment of this Agreement
will relieve the assigning party of its obligations hereunder.

         8.11 Captions. The article, section and paragraph captions herein and
the table of contents hereto are for convenience of reference only, do not
constitute part of this Agreement and will not be deemed to limit or otherwise
affect any of the provisions hereof. Unless otherwise specified, all references
herein to numbered articles or sections are to articles and

                                      -15-
<PAGE>   20

sections of this Agreement and all references herein to annexes or schedules are
to annexes and schedules to this Agreement.

         8.12 Severability. If any provision of this Agreement or the
application thereof to any Person or circumstance is determined by a court of
competent jurisdiction to be invalid, void or unenforceable, the remaining
provisions hereof, or the application of such provision to Persons or
circumstances other than those as to which it has been held invalid or
unenforceable, will remain in full force and effect and will in no way be
affected, impaired or invalidated thereby. If the economic or legal substance of
the matters contemplated hereby is affected in any manner adverse to any party
as a result thereof, the parties will negotiate in good faith in an effort to
agree upon a suitable and equitable substitute provision to effect the original
intent of the parties.

         8.13 Parties in Interest. This Agreement is binding upon and is for the
benefit of the parties hereto and their respective successors and permitted
assigns. This Agreement is not made for the benefit of any Person not a party
hereto, and no Person other than the parties hereto or their respective
successors and permitted assigns will acquire or have any benefit, right, remedy
or claim under or by reason of this Agreement.

         8.14 Schedules. All annexes and schedules attached hereto are hereby
incorporated in and made a part of this Agreement as if set forth in full
herein. Capitalized terms used in the schedules hereto but not otherwise defined
therein will have the respective meanings assigned to such terms in this
Agreement.

         8.15 Waivers; Remedies. No failure or delay on the part of either Crane
or Huttig in exercising any right, power or privilege hereunder will operate as
a waiver thereof, nor will any waiver on the part of either Crane or Huttig of
any right, power or privilege hereunder operate as a waiver of any other right,
power or privilege hereunder, nor will any single or partial exercise of any
right, power or privilege hereunder preclude any other or further exercise
thereof or the exercise of any other right, power or privilege hereunder. The
rights and remedies herein provided are cumulative and are not exclusive of any
rights or remedies which the parties may otherwise have at law or in equity.

         8.16 Further Assurances. As and when requested by either party hereto,
the other party shall execute and deliver, or cause to be executed and
delivered, all such documents and instruments and shall take, or cause to be
taken, all such actions as the requesting party may reasonably request with
respect to the matters described herein.

         8.17 Counterparts. This Agreement may be executed in separate
counterparts, each such counterpart being deemed to be an original instrument,
and all such counterparts will together constitute the same agreement.

                                      -16-
<PAGE>   21

         IN WITNESS WHEREOF, the parties have caused this Employee Matters
Agreement to be duly executed as of the day and year first above written.

                                    CRANE CO.

                                    By: /s/ R.S. Evans
                                       -----------------------------------------
                                    Title: Chairman & Chief Executive Officer
                                          --------------------------------------

                                    HUTTIG BUILDING PRODUCTS, INC.

                                    By: /s/ Barry J. Kulpa
                                       -----------------------------------------
                                    Title: President and Chief Executive Officer
                                          --------------------------------------

                                      -17-

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