Document:

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                                                                EXHIBIT 10.14(1)

                          REVISED EMPLOYMENT AGREEMENT
                          ----------------------------
                                   (EXECUTIVE)

     THIS AGREEMENT (the "Agreement"), made as of the Effective Date (as defined
below) between BOB L. GADDY ("Executive"), PACE INDUSTRIES, INC., an Arkansas
corporation (the "Company") and LEGGETT & PLATT, INCORPORATED, a Missouri
corporation ("L&P").

WITNESSETH:

     WHEREAS, the Company and L&P wish to obtain the services of the Executive
as an Executive of the Company and L&P; and

     WHEREAS, the Executive is willing, upon the terms and conditions herein set
forth, to serve as Executive of the Company, L&P and their subsidiaries; and

     WHEREAS, this Agreement constitutes an amendment and restatement of the
employment agreement between the Executive and the Company in force immediately
prior to the Effective Date (the "former Employment Agreement");

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

     1.    NATURE OF EMPLOYMENT

     The Company and L&P hereby agree to employ Executive, and Executive agrees
to serve the Company and L&P, for the Term of Employment as defined in Section
3, in the capacity of Senior Vice President of L&P, Chairman and Chief Executive
Officer-Aluminum Group of L&P and Chairman of the Board and Chief Executive
Officer of the Company, and to undertake all duties consistent with these
positions. However, the Board of Directors of L&P may from time to time during
the term hereof elect to have the Executive serve in an additional capacity at
L&P at the Senior Vice President level or above and upon any such election,
Executive shall so serve. The Executive's employment under this Agreement will
be carried out at the Company's executive offices located in Fayetteville,
Arkansas. The Executive, L&P and the Company acknowledge that the Executive's
employment may require substantial domestic and international travel from time
to time.

     2.   EXTENT OF EMPLOYMENT

          (a) Reporting Relationship. During the Term of Employment, the
Executive shall serve the Company and L&P faithfully and to the best of his
ability. The Executive shall report to Mr. Felix E. Wright (currently the
President and Chief

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Operating Officer of L&P) as long as Mr. Wright is employed by L&P or his
successor.

          (b) No Services to Others. During the Term of Employment, the
Executive shall devote substantially all of his business time, energy and skill
to such employment, and he will not, directly or indirectly, engage or
participate in, or become employed by, or render advisory or other services to,
any business entity including any entity which deals in any way with the Company
or L&P, except for entities which are affiliated with the Company. The foregoing
notwithstanding, this Agreement shall not be construed as preventing the
Executive from investing his personal assets in any business entity which does
not compete with the Company or L&P in such form or manner as will not require
any substantial services on the part of the Executive in the operation or the
affairs of such business entity.

          (c) Policies and Procedures. Executive shall observe and abide by
policies and decisions of the Company and L&P in all business matters. Executive
acknowledges receipt of the current Business Conduct Policy applicable to
employees of L&P and its subsidiaries and shall abide by the terms of the same
as revised or supplemented from time to time. Executive also acknowledges
receipt of the Employee Invention and Confidentiality Agreement last revised
9/94, applicable to employees of L&P and its subsidiaries, and agrees to abide
by the terms thereof and herewith delivers one signed original thereof to the
Company and L&P.

     3.   TERM OF EMPLOYMENT

          (a) Duration "Term of Employment" shall commence on the date the
Company becomes an indirect subsidiary of L&P (the "Effective Date") and shall
continue for a term of seven (7) years; provided, however, that should the
Executive's employment by the Company be earlier terminated, as hereinafter set
forth in this Section, the Term of Employment shall end on the date of such
earlier termination.

     (b) Early Termination. The Term of Employment shall be earlier terminated:
(i) upon the death of Executive; (ii) in the event that because of disability
the Executive is unable to perform, and does not perform for a continuous period
of six (6) months substantially all of his duties hereunder ("Disabled" or
"Disability"); (iii) by the Company and L&P for Cause (as such term is herein
defined) as determined in the good faith determination of the Board of Directors
of the Company and L&P (the "Board"), by delivery to the Executive of a written
notice specifying such termination and the reasons therefore, or (iv) by the
Company and L&P without Cause for any reason they deem appropriate or for no
reason.

          (c) For Cause. For the purposes of this Section 3, "Cause" shall mean
(i) willful breach by the Executive of a material provision of this Agreement,
(ii) willful neglect to perform his duties hereunder, (iii) conviction of a
felony, (iv) an act or acts of dishonesty intended to result directly or
indirectly in the Executive's gain or personal

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enrichment at the expense of the Company or L&P or any affiliate, or (v) the
violation by the Executive of any covenant not to compete delivered to the
Company or L&P or any affiliate on the date hereof; provided, however, that no
discharge shall be deemed to constitute Cause under subsection (ii) above,
unless the Executive first receives written notice from the Company and L&P
advising the Executive of the specific acts or omissions alleged to constitute a
willful neglect to perform his duties and such failure continues after the
Executive has had a reasonable opportunity to correct the acts or omissions so
complained of.

          (d) Without Cause. If the Company and L&P terminate the Executive's
employment under Section 3(b)(iv) (i.e. without Cause) all obligations of the
Company, L&P and the Executive will terminate except that the Company and L&P
shall for the duration of the "Compensation Period" (as hereinafter defined) (i)
continue to make payments of all salary and bonuses referred to in Section 4(a)
and 4(b) as though Executive's employment had not been terminated, and (ii) the
Executive may continue to participate in all plans (including stock option
plans) and programs of the Company and L&P in which the Executive participated
at the time of such termination to the extent that such continued participation
is possible under the general terms and provisions of such plans and programs.

               The term "Compensation Period" means the seven (7) year Term of
Employment contemplated by this Agreement provided, however, such Compensation
Period shall immediately terminate upon the occurrence of any of the following:

          (i)   The Executive's death;

          (ii)  The Executive's becoming and remaining Disabled for the six (6)
                month period referenced in Section 3(b)(ii); or

          (iii) The Executive's failure to comply with Section 7.

          If the Executive obtains other employment while payments or benefits
are being made or provided under this Section, the Company and L&P will be
entitled to offset against the amounts or benefits payable under this Section to
Executive the amount of payments or benefits which the Executive receives or has
a right to receive in connection with such other employment.

          Except as provided in this Section, the Executive will not have any
rights or claims against the Company for termination without Cause.

     4.   COMPENSATION

          (a) Salary. During the Term of Employment, the Company or L&P shall
pay to the Executive as total compensation for his services hereunder, in at
least

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monthly installments, a salary at the rate per year set forth at the end of this
Agreement during each year of the Term of Employment.

          On or before April 1, 1997 and on or before April 1 of each succeeding
year during the Term of Employment, the Compensation Committee of L&P shall
appraise the Executive's performance during the previous calendar year, taking
into account such factors as it deems appropriate. As a result of such
appraisal, the then annual salary of the Executive shall be increased (but may
not be decreased) by such amount as the Compensation Committee of L&P determines
is fair, just and equitable; provided, however, the percentage increase in the
Executive's salary shall always be at least equal to the average percentage
increase then provided for in L&P's merit budget for salaried employees.

          (b) Bonuses. Executive shall be entitled to earn an incentive bonus of
up to 33% of Executives' annual salary as of year-end. Such bonus will be
calculated and paid in accordance with L&P's Key Management Incentive
Compensation Plan. Executive's bonus for 1996 will be prorated from the date
hereof.

          In addition, Executive shall be entitled to participate in and earn
     bonuses pursuant to the Company's Revised and Restated Employee Incentive
     Compensation Plan (the "Pace Incentive Plan") of even date.

          The Executive's allocation in the Bonus Pool under the Pace Incentive
     Plan for each Plan Year in which he is an Employee shall be twenty-five
     percent (25%) (the "Executive's Allocation"), unless Executive and the Plan
     Executive shall agree otherwise or as is equitable due to the operation of
     Section 3(E) of the Pace Incentive Plan.

          If during a particular Plan Year Executive is no longer employed by
     the Company or L&P by reason of death Executive's estate shall receive a
     pro rata portion of the Executive's Allocation for that Plan Year based on
     the number of days (assuming a three hundred sixty-five (365) day year)
     that Executive was employed during such particular Plan Year. The terms
     "Plan Year," "Bonus Pool," "Employee" and "Plan Executive" as used in this
     and the preceding paragraph have the meaning assigned to them in the Pace
     Incentive Plan.

          (c) Stock Options. Within 30 days following the date of this Agreement
     the Executive shall be granted incentive stock options (to the extent
     permissible under applicable tax laws) and non-qualified stock options
     under L&P's 1989 Flexible Stock Plan (the "Plan") to purchase 105,250
     shares of L&P's common stock at a purchase price equal to the market price
     of such stock on the date of grant. The options shall expire on the earlier
     of: (i) ten (10) years after the date of grant; or (ii) as provided in the
     application option agreements. The options may, at the discretion of the
     Executive, be paid with cash or already owned

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     shares of L&P common stock or a combination of both cash and stock. The
     options shall first become exercisable as follows:

             AFTER DATE                % OF OPTIONS FIRST
             OF GRANT                  BECOMING EXERCISABLE
             ----------                --------------------

             1 Year                    33.33%
             2 Years                   33.33%
             3 Years                   33.34%
                                         100%

     5.   REIMBURSEMENT OF EXPENSES

          During the Term of Employment the Company shall continue to pay or
reimburse Executive for reasonable expenses incurred in the performance of his
duties hereunder in accordance with the policy of L&P.

     6.   BENEFITS

          The Executive shall be entitled to substantially the same employee
benefits and perquisites provided by the Company to the Executive prior to the
Effective Date, including vacation period and insurance.

     7.   CONFIDENTIAL INFORMATION

          During the term of this Agreement and for a period of two (2) years
thereafter, the Executive shall not, without the written consent of the Board or
a person authorized thereby, disclose to any person any confidential information
obtained by him in the employ of the Company or L&P with respect to any
operations, customers, procedures, investments or other financial matters of the
Company or L&P.

     8.   NOTICE

          Any notice, request, demand or other communication required or
permitted to be given under this Agreement shall be sufficient if in writing and
if delivered personally, or sent by national courier service or by certified or
registered mail as follows (or to such other addresses or address as shall be
set forth in a notice given in the same manner):

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     If to the Executive:

          Bob L. Gaddy
          c/o Pace Industries, Inc.
          P.O. Box 309
          One McIlory Plaza, Suite 401
          Fayetteville, AR 72701

     If to the Company:

          Pace Industries, Inc.
          One McIlroy Plaza, Suite 401
          Fayetteville, AR 72701

     If to L&P:

          Leggett & Platt, Incorporated
          No. 1 Leggett Road
          Carthage, Missouri 64836
          Attention:  Secretary

          Any such notices shall be deemed to be given on the date delivered,
deposited or mailed in the manner provided above.

     9.   ARBITRATION

          The exclusive procedure for resolution of any dispute under this
Agreement shall be by arbitration in Little Rock, Arkansas or Joplin, Missouri
or such other location as the parties shall agree upon before one arbitrator in
accordance with the rules then obtaining of the American Arbitration
Association. The award of the arbitrator shall be in writing and state the
reason for his decision, shall be final and binding upon the parties and
judgment upon the award may be entered in any court having jurisdiction thereof.
The costs of arbitration consisting of filing fees and arbitrator's fees and
expenses, if any, shall be divided equally between the parties. Each party shall
otherwise bear its or his own expenses.

     10.  VALIDITY

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

     11.  WAIVER OF BREACH

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          The waiver by the Company or L&P or by the Executive of a breach of
any provision of this Agreement by the other party, shall not operate, or be
construed, as a waiver of any other breach of such other party.

     12.  ASSIGNMENT

          Neither the Company nor L&P nor the Executive may assign, transfer,
pledge, encumber or otherwise dispose of this Agreement or any of their
respective rights hereunder, without the written consent of the other, except
that the Company or L&P may assign this Agreement if the Company or L&P merges
with or otherwise combines its business with another entity and such entity
assumes the obligation hereunder; provided in such event the duties of the
Executive shall not be changed in any significant regard.

     13.  ENTIRE AGREEMENT

          This Agreement constitutes the entire understanding of the Company,
L&P and the Executive with respect to the subject matter hereof and supersedes
any and all prior understandings, written or oral including, but not limited to,
the former Employment Agreement. This Agreement may not be changed orally but
only by an agreement in writing subscribed by the party against whom enforcement
of any waiver, change, modification, extension or discharge is sought.

     14.  APPLICABLE LAW

          The parties hereto agree that this Agreement shall be construed and
enforced pursuant to the laws of the State of Arkansas.

     15.  OTHER

          The cost of all compensation and benefits provided to the Executive
under this Agreement by L&P (excluding any bonuses payable to Executive under
the Pace Incentive Plan) shall constitute costs of the Company when computing
any bonuses payable pursuant to the Company's Revised and Restated Employee
Incentive Compensation Plan.

          The term of the covenant not to compete given by the Executive to the
Company on or about December 9, 1993 in connection with the December 10, 1993
merger of the Company is hereby extended to December 9, 2001.

          IN WITNESS WHEREOF, the parties hereto have set their hands as of the
day and year first above written.

                                            PACE INDUSTRIES, INC.

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                                            By: /s/ J. Scott Bull
                                                --------------------------------
                                                     J. Scott Bull
                                                     President

                                            LEGGETT & PLATT, INCORPORATED

                                            By: /s/ Robert A. Jefferies, Jr.
                                                --------------------------------
                                                     Senior Vice President

                                            By: /s/ Bob L. Gaddy
                                                --------------------------------
                                                     Executive<PAGE>

                                                                EXHIBIT 10.16(1)

                          LEGGETT & PLATT, INCORPORATED
                          DEFERRED COMPENSATION PROGRAM
                 (Restated and Amended as of November 14, 2001)

                                TABLE OF CONTENTS

                                                                        Page
                                                                        ----

1.   NAME AND PURPOSE ..................................................   1
     1.1  Name. ........................................................   1
     1.2  Purpose. .....................................................   1

2.   DEFINITIONS .......................................................   1
     2.1  Beneficiary ..................................................   1
     2.2  Benefits. ....................................................   1
     2.3  Committee. ...................................................   1
     2.4  Common Stock .................................................   1
     2.5  Company ......................................................   1
     2.6  Compensation. ................................................   1
     2.7  Deferred Compensation ........................................   1
     2.8  Diversified Investment Deferral ..............................   1
     2.9  Election .....................................................   1
     2.10 Employer .....................................................   2
     2.11 ERISA ........................................................   2
     2.12 L&P Cash Deferral ............................................   2
     2.13 Lost Retirement Benefit Amount ...............................   2
     2.14 Option .......................................................   2
     2.15 Participant ..................................................   2
     2.16 Section 16 Officers. .........................................   2
     2.17 Unforeseeable Hardship. ......................................   2

3.   ELECTION TO DEFER .................................................   2
     3.1  Type and Amount of Deferral. .................................   2
     3.2  Election. ....................................................   2
     3.3  Benefit Plan Contributions and Payroll Deductions ............   3
     3.4  Vesting ......................................................   3

4.   OPTIONS ...........................................................   3
     4.1  Number of Options and Exercise Price .........................   3
     4.2  Grant Date. ..................................................   3
     4.3  Term of Options. .............................................   3
     4.4  Exercise of Options ..........................................   3
     4.5  Flexible Stock Plan, Non-Qualified Options. ..................   4
     4.6  No Shareholders' Rights ......................................   4
     4.7  Change in Capitalization. ....................................   4

5. L&P CASH DEFERRAL AND DIVERSIFIED INVESTMENT DEFERRAL ...............   4

                                        i

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     5.1  Interest on L&P Cash Deferral. ...............................   4
     5.2  Diversified Investment Alternatives. .........................   4
     5.3  Payment Dates ................................................   4
     5.4  Convert L&P Cash Deferral to Option ..........................   5
     5.5  Hardship, Early Withdrawal ...................................   5
     5.6  Unsecured Creditor ...........................................   5
     5.7  Claims under ERISA ...........................................   5

6. COMPANY BENEFIT PLANS ...............................................   6
     6.1  Impact on Benefit Plans. .....................................   6
     6.2  Contributions. ...............................................   6

7. ADMINISTRATION ......................................................   6
     7.1  Administration. ..............................................   6
     7.2  Committee's Authority ........................................   6
     7.3  Section 16 Officers ..........................................   6

8. MISCELLANEOUS .......................................................   7
     8.1  No Right of Employment .......................................   7
     8.2  Beneficiary ..................................................   7
     8.3  Transferability ..............................................   7
     8.4  Binding Effect ...............................................   7
     8.5  Amendments and Termination ...................................   7
     8.6  Governing Law ................................................   7

                                       ii

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                          LEGGETT & PLATT, INCORPORATED
                          DEFERRED COMPENSATION PROGRAM
                 (Restated and Amended as of November 14, 2001)

1.   NAME AND PURPOSE
     ----------------

     1.1  Name. The name of this Program is the "Leggett & Platt, Incorporated
          ----
Deferred Compensation Program."

     1.2  Purpose. The Program is intended to provide selected key employees the
          -------
opportunity to defer future compensation. The Program is an unfunded deferred
compensation program for a select group of management and/or highly compensated
employees as described in ERISA.

2.   DEFINITIONS
     -----------

     2.1  Beneficiary. The person or persons designated as the recipient of a
          -----------
deceased Participant's benefits under the Program.

     2.2  Benefits. The benefits available under the Program, including Options,
          --------
L&P Cash Deferrals and Diversified
Investment Deferrals.

     2.3  Committee. The Compensation Committee of the Board of Directors of the
          ---------
Company or, except as to Section 16 Officers, any persons to whom the
administrative authority has been delegated.

     2.4  Common Stock. The Company's common stock, $.01 par value.
          ------------

     2.5  Company. Leggett & Platt, Incorporated.
          -------

     2.6  Compensation. Salary, bonuses and all other forms of cash compensation
          ------------
that may become payable to a Participant to the extent designated by the
Committee.

     2.7  Deferred Compensation. Any Compensation that would have become payable
          ---------------------
to a Participant but for the Participant's election to defer such Compensation.

     2.8  Diversified Investment Deferral. The deferral of Compensation into an
          -------------------------------
obligation of the Company to pay on a future date or dates the Deferred
Compensation plus earnings and minus losses thereon determined pursuant to
Section 5.2. Such earnings and losses will be determined based on the
performance of one or more hypothetical investments selected by the Participant.
The Committee will determine the hypothetical investment alternatives available
to the Participant.

     2.9  Election. A Participant's election to defer Compensation, which sets
          --------
forth the percentage or amount of Compensation to be deferred and such other
items as the Committee may require.

                                       1

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     2.10 Employer. The Company or any directly or indirectly majority-owned
          --------
subsidiary, partnership or other entity of the Company.

     2.11 ERISA. The Employment Retirement Security Income Act of 1974, as
          -----
amended.

     2.12 L&P Cash Deferral. The deferral of Compensation into an obligation of
          -----------------
the Company to pay on a future date or dates the Compensation plus interest
thereon determined pursuant to Section 5.1.

     2.13 Lost Retirement Benefit Amount. An amount equal to: (i) the present
          ------------------------------
value, if any, by which the Participant's retirement benefit under the Company's
Retirement Plan would be reduced as a result of the deferral of Compensation
under the Program less (ii) the present value of Participant contributions not
made to the Retirement Plan as a result of deferral of Compensation.

     2.14 Option. An option to purchase shares of Common Stock issued pursuant
          ------
to Section 4.

     2.15 Participant. A management or highly compensated employee of Employer
          -----------
selected by the Committee who has delivered a signed Election form to the
Company. The Committee may revoke an individual's right to participate in the
Program if he no longer meets the Program's eligibility requirements or for any
other reason. Such termination will not affect benefits previously vested under
the Program.

     2.16 Section 16 Officers. All officers of the Company subject to the
          -------------------
requirements of Section 16 of the Securities Exchange Act of 1934.

     2.17 Unforeseeable Hardship. A severe financial hardship of the Participant
          ----------------------
resulting from (a) a sudden and unexpected illness or accident of the
Participant or his dependent; (b) loss of Participant's principal residence due
to casualty; or (c) such other similar extraordinary and unforeseeable
circumstances resulting from events beyond the control of the Participant as
determined by the Committee.

3.   ELECTION TO DEFER
     -----------------

     3.1 Type and Amount of Deferral. Each Participant may elect to defer all or
         ---------------------------
a portion of his Compensation which would otherwise become payable in the next
calendar year. Compensation may be deferred into an Option, an L&P Cash
Deferral, or a Diversified Investment Deferral; provided, however, that the
maximum Diversified Investment Deferral for any year may not exceed the greater
of 20% of a Participant's Deferred Compensation or 8% of his annual salary on
the Election date.

     3.2 Election. A Participant's Election must be made on or before
         --------
December 31 of the calendar year preceding the year in which the Deferred
Compensation would normally have become payable. Elections may be modified or
withdrawn until such time as an original Election could no longer be made.

                                        2

<PAGE>

     3.3 Benefit Plan Contributions and Payroll Deductions. If Compensation
         -------------------------------------------------
payable after giving effect to a deferral Election will be insufficient to make
all Company benefit contributions and required tax withholdings, the Participant
must, at the time of the Election, make arrangements suitable to the Company for
the payment of such amounts. If the Participant does not pay the required
amounts in accordance with those arrangements, his Deferred Compensation will be
reduced by such amounts.

     3.4 Vesting. Benefits under the Program vest when the Participant would
         -------
have been vested in the Compensation but for the election to defer. Benefits not
vested will terminate immediately upon a Participant's termination of
employment.

4.   OPTIONS
     -------

     4.1 Number of Options and Exercise Price. Unless the Committee determines
         ------------------------------------
otherwise, the number of Option shares granted to a Participant is equal to the
nearest number of whole shares determined under the following formula:

                         Compensation Foregone
                      ---------------------------- x 1.176
                      Stock Price - Exercise Price

         "Compensation Foregone" means the Compensation that the Participant
elected to apply to Options plus the related Lost Retirement Benefit Amount, if
any. "Stock Price" means the lowest per share closing price of Common Stock
during December of the year immediately preceding the year in which the deferred
Compensation would have been paid. The "Exercise Price" for each share covered
by an Option is 20% of the Stock Price.

     4.2 Grant Date. Options will be granted as of the date of the lowest
         ----------
closing stock price in December of each year or such other date as the Committee
determines (the "Grant Date").

     4.3 Term of Options. The term of an Option will expire 15 years after the
         ---------------
Grant Date (the "Expiration Date").

     4.4 Exercise of Options. Options will be exercisable at the later of (i) 12
         -------------------
months after the Grant Date or (ii) the date the option vests. However, despite
any later specified date for exercise, any vested Option will become exercisable
in full upon the death of the Participant or his total and permanent disability.

     An Option may be exercised by delivering a written notice to the Company
accompanied by payment of the Exercise Price for the shares purchased. Such
payment may be made in cash, by delivery of shares of Common Stock (held for at
least 6 months) or a combination of cash and Common Stock. Any such Common Stock
will be valued at the per share closing price of the Company's common stock on
the trading day immediately preceding the date of exercise. No shares will be
delivered in connection with an Option exercise unless all amounts required to
satisfy tax and any other required withholdings have been paid to the Employer.

                                       3

<PAGE>

     An Option may be exercised only by a Participant during his life or, in the
case of disability, by his guardian or legal representative. Upon the death of a
Participant, the Option may be exercised by his Beneficiary or, if the
Participant fails to designate a Beneficiary, by his legal representative.

     If any Option has not been fully exercised on the Expiration Date, the
unexercised portion of the Option shall be deemed exercised on such Expiration
Date, provided the then market price of a share of L&P Common Stock exceeds the
per share Exercise Price. In such event, shares of Common Stock will not be
issued until the Exercise Price and any other required amounts have been paid.

     4.5 Flexible Stock Plan, Non-Qualified Options. All Options will be granted
         ------------------------------------------
under the Company's 1989 Flexible Stock Plan, as amended, and will be subject to
the terms of that plan. All Options will be non-qualified options that are not
entitled to special tax treatment under ss.422 of the Internal Revenue Code.

     4.6 No Shareholders' Rights. A Participant will have no rights as a
         -----------------------
shareholder with respect to the shares covered by his Option until a stock
certificate has been issued for the shares. No adjustment will be made for
dividends or other rights for which the record date is before the certificate
date.

     4.7 Change in Capitalization. In the event of a stock dividend, stock
         ------------------------
split, merger, consolidation or other recapitalization of the Company affecting
the number of outstanding shares of Common Stock, the number of Option shares
and Exercise Price will be appropriately adjusted.

5.   L&P CASH DEFERRAL AND DIVERSIFIED INVESTMENT DEFERRAL
     -----------------------------------------------------

     5.1 Interest on L&P Cash Deferral. L&P Cash Deferrals will bear interest at
         -----------------------------
a rate established by the Committee. The interest will begin accruing on the
date the Deferred Compensation would have been paid but for the deferral. Until
the Committee determines otherwise, the Senior Vice President - Finance and
Administration will determine the interest rates and the length of the deferral
periods available to Participants.

     5.2 Diversified Investment Alternatives. With respect to Diversified
         -----------------------------------
Investment Deferrals, the Committee will determine the investment alternatives
available for hypothetical investment by the Participant and the procedures
relating to the Election of such investments. The Committee may change the
available investment alternatives from time to time. A Participant may choose
one or more of such investment alternatives. Only whole percentages may be
selected for each alternative. The Participant may change his investment choices
from time to time under procedures applicable to Diversified Investment
Deferrals. Any such change will be effective prospectively.

     5.3 Payment Dates. The Participant will select the date or dates of payout
         -------------
for the L&P Cash Deferral and the Diversified Investment Deferrals on his
Election form; provided, however, that the first payment date will not be
earlier than two years after the Election is made

                                       4

<PAGE>

or such other date as the Committee determines. The Committee may establish
maximum deferral periods and maximum payout periods.

     The Participant may make a one-time election to extend the payout period
for the L&P Cash Deferrals and Diversified Investment Deferrals, not to exceed
any maximum payout period established by the Committee. The extension election
must be made not less than six months before the first scheduled payment date
designated in the original Election.

     5.4 Convert L&P Cash Deferral to Option. If a Participant elects an L&P
         -----------------------------------
Cash Deferral, the Participant may later request that the Committee grant an
Option in lieu of the L&P Cash Deferral. In such case, the Committee may, in its
sole discretion, grant to the Participant an Option on such date and upon such
terms as the Committee determines. The Participant will forfeit all accrued
interest of the L&P Cash Deferral if the Committee grants his request.

     5.5 Hardship, Early Withdrawal. In the event of an Unforeseeable Hardship
         --------------------------
of a Participant, the Committee may, in its sole discretion, permit early
payment of all or a portion of a vested L&P Cash Deferral or Diversified
Investment Deferral.

     Notwithstanding any other provision of the Program, a Participant may
withdraw, upon advance notice to the Company, all or part of his vested
Diversified Investment Deferral subject to a penalty of 10% of the distribution.

     5.6 Unsecured Creditor. The Company's obligation to a Participant for an
         ------------------
L&P Cash Deferral or a Diversified Investment Deferral is a mere promise to pay
money in the future and the Participant will have the status of a general
unsecured creditor of the Company.

     5.7 Claims under ERISA. The Committee and the Company's Secretary will make
         ------------------
all determinations regarding benefits under the Program in accordance with
ERISA.

     If a Participant believes he is entitled to receive a distribution under
the Program and he does not receive such distribution, he must make a claim in
writing to the Committee. The Committee will review the claim. If the claim is
denied, the Committee will provide a written notice of denial within 90 days
setting out: the reasons for the denial; provisions of the Program upon which
the denial is based; any additional information to perfect the claim and why
such information is necessary; the steps to be taken if a review is sought,
including the right to file an action under Section 502(a) of ERISA following an
adverse determination; and the time limits for requesting a review and for
review.

     If a claim is denied and the Participant desires a review, he will notify
the Secretary in writing within 60 days of the receipt of notice of denial. In
requesting a review, the Participant may review the Program or any related
document and submit any written statement he deems appropriate. The Secretary
will then review the claim and, if the decision is adverse to the Participant,
provide a written decision within 60 days setting out: the reasons for the
denial; provisions of the Program upon which the denial is based; a statement
that the Participant is entitled to receive, upon request and free of charge,
copies of documents relied upon in making the decision; and the Participant's
right to bring an action under Section 502(a) of ERISA.

                                       5

<PAGE>

6.   COMPANY BENEFIT PLANS
     ---------------------

     6.1 Impact on Benefit Plans. The deferral of Compensation under the Program
         -----------------------
is not intended to affect other Employer benefit plans in which the Participant
is participating or may be eligible to participate. The following rules will
apply to the types of benefits listed below.

          .    Lost Retirement Benefit--Deferred Compensation may result in Lost
               Retirement Benefits under the Company's Retirement Plan. However,
               the Company will increase the amount deferred under an Option,
               L&P Cash Deferral or Diversified Investment Deferral by the Lost
               Retirement Benefit.

          .    Executive Stock Unit Program--The amount of payroll deduction for
               Stock Units under the Company's Executive Stock Unit Program will
               be calculated as if no deferral had occurred.

          .    Discount Stock Plan--Contributions under the Discount Stock Plan
               will be calculated as if no deferral had occurred.

          .    Life Insurance and Disability Benefits--To the extent the level
               of benefits is based upon a Participant's compensation, Deferred
               Compensation will be included when it would have otherwise become
               payable but for the deferral.

     6.2 Contributions. The Participant must make contributions and payments
         -------------
under all Employer benefit plans in which he is participating, except the
Retirement Plan, in the amounts required as if no deferral had occurred. If
there is not sufficient Compensation after deferral from which to withhold
required contributions and payments, the Participant must make arrangements
suitable to the Company for payment of the required amounts.

7.   ADMINISTRATION
     --------------

     7.1 Administration. Except to the extent the Committee otherwise designates
         --------------
pursuant to Section 7.2(e), the Committee will control and manage the operation
and administration of the Program.

     7.2 Committee's Authority. The Committee will have such authority as may be
         ---------------------
necessary to discharge its responsibilities under the Program, including the
authority to: (a) interpret the provisions of the Program; (b) adopt rules of
procedure consistent with the Program; (c) determine questions relating to
benefits and rights under the Program; (d) maintain records concerning the
Program; (e) designate any Company employee or committee to carry out any of the
Committee's duties, including authority to manage the operation and
administration of the Program; and (f) determine the content and form of the
Participant's Election and all other documents required to carry out the
Program.

     7.3 Section 16 Officers. Notwithstanding the foregoing, the Committee may
         -------------------
not delegate its authority with respect to Section 16 Officers.

                                       6

<PAGE>

8.   MISCELLANEOUS
     -------------

     8.1 No Right of Employment. Nothing contained in the Program or in any
         ----------------------
document issued under the Program will constitute evidence of any agreement or
understanding that the Employer will employ or retain the Participant for any
period of time or at any particular rate of compensation.

     8.2 Beneficiary. A Participant may designate one or more Beneficiaries
         -----------
to receive his Benefits if he dies. A Participant may change or revoke a
designation of a Beneficiary at any time upon written notice to the Company. If
a notice of beneficiary is not on file or if the Beneficiary is not living when
the Participant dies, the Participant's estate will be his Beneficiary.

     8.3 Transferability. No Benefits or interests therein may be
         ---------------
transferred, assigned or pledged during a Participant's lifetime. Benefits may
not be seized by any creditor of a Participant or Beneficiary or transferred by
operation of law in the event of bankruptcy or insolvency. Any attempted
assignment or transfer will be void. However, the Committee may, in its sole
discretion, allow a Participant to transfer Options by way of a bona fide gift.
The donee will hold such Options subject to the Program.

     8.4 Binding Effect. The Program will be binding upon and inure to the
         --------------
benefit of the Company, its successors and assigns, and each Participant, his
heirs, personal representatives, and Beneficiaries.

     8.5 Amendments and Termination. The Company will have the right to
         --------------------------
amend or terminate the Program at any time. However, no such amendment or
termination will deprive any Participant of the right to receive Benefits
previously vested under the Program.

     8.6 Governing Law. To the extent not preempted by ERISA, Missouri law
         -------------
will govern this Program.

                                       7

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