Document:

Third Supplemental Indenture, dated as of July 7, 2006

 Exhibit 4.2 
 EXECUTION VERSION 
 THIRD SUPPLEMENTAL INDENTURE, dated as of July 7, 2006 among
(i) CENTRAL EUROPEAN DISTRIBUTION CORPORATION, a company incorporated under the laws of Delaware (the “Company”), (ii) CAREY AGRI INTERNATIONAL-POLAND SP. Z O.O., ONUFRY S.A., MULTI-EX S.A., ASTOR SP. Z O.O., POLSKIE
HURTOWNIE ALKOHOLI SP. Z O.O., MTC SP. Z O.O., PRZEDSIEBIORSTWO DYSTRYBUCJI ALKOHOLI AGIS S.A., DAKO-GALANT PRZEDSIEBIORSTWO HANDLOWO PRODUKCYJNE SP. Z O.O., DAMIANEX S.A., PWW SP. Z O.O., MIRO SP. Z O.O. AND BOLS SP. Z O.O., each a company
organized under the laws of the Republic of Poland, and BOTAPOL HOLDING B.V., a company organized under the laws of the Netherlands (collectively, the “Guarantors”), (iii) DELIKATES SP. Z O.O., PANTA HURT SP. Z O.O., POLNIS
DYSTRYBUCJA SP. Z O.O., IMPERIAL SP. Z O.O. AND KROKUS SP. Z O.O., each a company organized under the laws of the Republic of Poland (the “New Guarantors”), (iv) THE BANK OF NEW YORK (the “Trustee”), and
(v) ING BANK N.V., London Branch (the “Note Security Agent”). 
 WHEREAS, reference is made to that certain Indenture,
dated as of July 25, 2005, as supplemented and amended (the “Indenture”), among the Company, the Guarantors, the Trustee and the Note Security Agent, with respect to the Company’s 8% Senior Secured Notes due 2012 (the
“Notes”); 
 WHEREAS, pursuant to Section 4.22(a) of the Indenture, the Company may designate a Restricted Subsidiary
as an Additional Guarantor (each as defined in the Indenture) of the Notes; 
 WHEREAS, the Company wishes to designate the New Guarantors as
Additional Guarantors under the Indenture; 
 WHEREAS, the New Guarantors have agreed to fully and unconditionally guarantee the
Company’s obligations under the Indenture, which guarantee is provided in this Third Supplemental Indenture, as permitted pursuant to Section 9.1(a) of the Indenture; 
 WHEREAS, in accordance with Section 9.1(a) of the Indenture, the Company, the Guarantors, the Trustee and the Note Security Agent may amend or
supplement the Indenture without the consent of any Holder; 
 WHEREAS, the Company, the Guarantors, the Trustee and the Note Security Agent
desire to amend and supplement the Indenture in accordance with Section 9.1(a) of the Indenture; and 
 WHEREAS, the execution and
delivery of this Third Supplemental Indenture has been duly authorized by the parties hereto, and all other acts necessary to make this Third Supplemental Indenture a valid and binding supplement to the Indenture effectively amending the Indenture
as set forth herein have been duly taken. 
 NOW, THEREFORE, in consideration of the foregoing and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the Company, the Guarantors, the New Guarantors, the Trustee and the Note Security Agent mutually covenant and agree as follows: 
 Section 1. Definitions. Capitalized terms used herein without definition shall have the meanings ascribed to them in the Indenture.

 Section 2. Additional Guarantees. Each of the New Guarantors hereby fully, unconditionally and irrevocably Guarantees, as
primary obligor and not merely as surety, on a senior basis to each Holder of a Note authenticated by the Trustee or the Authenticating Agent and to the Trustee and the Note Security Agent and each of their successors and assigns the full and prompt
performance of all of the Company’s obligations under this Indenture and the Notes 

 including the payment of principal of, and premium, if any, interest and Additional Amounts, if any, on the Notes and all
other obligations of the Company to the Holders, the Trustee and the Note Security Agent hereunder and under the Notes. Each New Guarantor further agrees and acknowledges that it shall be bound to the terms and conditions of Article X of the
Indenture to the same extent as it would be so bound were it to have been an Initial Guarantor on the Issue Date. 
 Section 3. No
Personal Liability of Directors, Officers, Employees, Incorporators or Shareholders. No director, officer, employee, incorporator or shareholder of the Company or any Guarantor or New Guarantor, as such, shall have any liability for any
obligations of the Company or any Guarantor under the Notes, this Third Supplemental Indenture, the Indenture or the Guarantees or for any claim based on, in respect of, or by reason of, such obligations or their creation; and that any and all such
personal liability has been waived upon the execution of the Indenture or is hereby expressly waived and released as a condition of, and as a consideration for, the execution of this Third Supplemental Indenture and the issuance of the Additional
Guarantees. 
 Section 4. Ratification and Effect. Except as hereby expressly amended and supplemented, the Indenture is in all
respects ratified and confirmed and all the terms, provisions and conditions thereof shall be and remain in full force and effect. Upon and after the execution of this Third Supplemental Indenture, each reference in the Indenture to “this
Indenture”, “hereunder”, “hereof” or words of like import referring to the Indenture shall mean and be a reference to the Indenture as modified hereby. 
 Section 5. Governing Law. This Third Supplemental Indenture shall be governed by, and construed in accordance with, the laws of the State of
New York. 
 Section 6. Submission to Jurisdiction; Appointment of Agent for Service. To the fullest extent permitted by
applicable law, each of the Company and the New Guarantors irrevocably submits to the non-exclusive jurisdiction of and venue in any federal or state court in the Borough of Manhattan in the City of New York, County and State of New York, United
States of America, in any suit or proceeding based on or arising out of or under or in connection with this Third Supplemental Indenture, the Notes or the Additional Guarantees, and irrevocably agrees that all claims in respect of such suit or
proceeding may be determined in any such court. Each of the Company and the Additional Guarantors, to the fullest extent permitted by applicable law, irrevocably and fully waives the defense of an inconvenient forum to the maintenance of such suit
or proceeding and hereby irrevocably designates and appoints the Corporation Service Company (the “Authorized Agent”), as its authorized agent upon whom process may be served in any such suit or proceeding. The Company and the New
Guarantors hereby irrevocably authorize and direct their Authorized Agent to accept such service. The Company and the New Guarantors further agree that service of process upon their Authorized Agent and written notice of such service to the Company
and the New Guarantors, as the case may be, as set forth above, shall be deemed in every respect effective service of process upon the Company or the New Guarantors, as the case may be, in any such suit or proceeding. Nothing herein shall affect the
right of any person to serve process in any other manner permitted by law. The Company and the New Guarantors agree that a final action in any such suit or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the
judgment or in any other lawful manner. 
 The Company and the New Guarantors hereby irrevocably waive, to the extent permitted by law, any
immunity to jurisdiction to which it may otherwise be entitled (including, without limitation, immunity to pre-judgment attachment, post-judgment attachment and execution) in any legal suit, action or proceeding against it arising out of or based on
this Indenture, the Notes or the transactions contemplated hereby. 

 The provisions of this Section 6 are intended to be effective upon the execution of this Third
Supplemental Indenture without any further action by the Company, the New Guarantors or the Trustee and the introduction of a true copy of this Third Supplemental Indenture into evidence shall be conclusive and final evidence as to such matters.

 Section 7. Counterpart Originals. All parties hereto may sign any number of copies of this Indenture. Each signed copy or
counterpart shall be an original, but all of them together shall represent one and the same agreement. 
 Section 8. Headings,
etc. The headings of the Sections of this Third Supplemental Indenture have been inserted for convenience of reference only, are not to be considered a part of this Third Supplemental Indenture and shall in no way modify or restrict any of the
terms or provisions hereof. 
 Section 9. Trustee. The Trustee makes no representations as to the validity or sufficiency of this
Third Supplemental Indenture. The recitals and statements herein are deemed to be those of the Company and the Guarantors and not of the Trustee. 

 IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be duly executed, as of the date
first written above. 
  

			
	 CENTRAL EUROPEAN
 DISTRIBUTION
CORPORATION,

	as the Company
		
	By:	 	 /s/ William V. Carey

	Name:	 	William V. Carey
	Title:	 	President and Chief Executive Officer
	
	 CAREY AGRI INTERNATIONAL-
 POLAND SP. Z
O.O.,
 as a Guarantor

		
	By:	 	 /s/ William V. Carey

	Name:	 	William V. Carey
	Title:	 	President
	
	 ONUFRY S.A.,
 as a
Guarantor

		
	By:	 	 /s/ Evangelos Evangelou

	Name:	 	Evangelos Evangelou
	Title:	 	Vice President
	
	 MULTI-EX S.A.,
 as a
Guarantor

		
	By:	 	 /s/ Christopher Biedermann

	Name:	 	Christopher Biedermann
	Title:	 	Power of Attorney

 Signature Page to Third Supplemental Indenture 

			
	ASTOR SP. Z O.O.,
	as a Guarantor
		
	By:	 	 /s/ William V. Carey

	Name:	 	William V. Carey
	Title:	 	Vice President
	
	 POLSKIE HURTOWNIE ALKOHOLI
 SP. Z
O.O.,
 as a Guarantor

		
	By:	 	 /s/ William V. Carey

	Name:	 	William V. Carey
	Title:	 	Board Member
		
	By:	 	 /s/ Evangelos Evangelou

	Name:	 	Evangelos Evangelou
	Title:	 	Board Member
	
	 MTC SP. Z O.O.,
 as a
Guarantor

		
	By:	 	 /s/ William V. Carey

	Name:	 	William V. Carey
	Title:	 	Vice President
	
	 PRZEDSIEBIORSTWO
 DYSTRYBUCJI ALKOHOLI AGIS
S.A.,
 as a Guarantor

		
	By:	 	 /s/ William V. Carey

	Name:	 	William V. Carey
	Title:	 	Supervisory Board Member

			
	By:	 	 /s/ Evangelos Evangelou

	Name:	 	Evangelos Evangelou
	Title:	 	Vice President
	
	 DAKO-GALANT
 PRZEDSIEBIORSTWO
HANDLOWO
 PRODUKCYJNE SP. Z O.O.,
 as a
Guarantor

		
	By:	 	 /s/ William V. Carey

	Name:	 	William V. Carey
	Title:	 	Board Member
		
	By:	 	 /s/ Evangelos Evangelou

	Name:	 	Evangelos Evangelou
	Title:	 	Board Member
	
	 DAMIANEX S.A.,
 as a
Guarantor

		
	By:	 	 /s/ Evangelos Evangelou

	Name:	 	Evangelos Evangelou
	Title:	 	Vice President
	
	 PWW SP. Z O.O.
 as a
Guarantor

		
	By:	 	 /s/ Evangelos Evangelou

	Name:	 	Evangelos Evangelou
	Title:	 	President
	
	 MIRO SP. Z O.O.
 as a
Guarantor

		
	By:	 	 /s/ Evangelos Evangelou

	Name:	 	Evangelos Evangelou
	Title:	 	Board Member

			
	BOTOPOL HOLDING B.V.
	as a Guarantor
		
	By:	 	 /s/ William V. Carey

	Name:	 	William V. Carey
	Title:	 	Board Director “A”
	
	 BOLS SP. Z O.O.
 as a
Guarantor

		
	By:	 	 /s/ Evangelos Evangelou

	Name:	 	Evangelos Evangelou
	Title:	 	President
	
	 DELIKATES SP. Z O.O.
 as a
Guarantor

		
	By:	 	 /s/ William V. Carey

	Name:	 	William V. Carey
	Title:	 	Vice President
		
	By:	 	 /s/ Christopher Biedermann

	Name:	 	Christopher Biedermann
	Title:	 	Board Member
	
	 PANTA HURT SP. Z O.O.
 as a
Guarantor

		
	By:	 	 /s/ William V. Carey

	Name:	 	William V. Carey
	Title:	 	Board Member
		
	By:	 	 /s/ Evangelos Evangelou

	Name:	 	Evangelos Evangelou
	Title:	 	Board Member

			
	POLNIS DYSTRYBUCJA SP. Z O.O.
	as a Guarantor
		
	By:	 	 /s/ William V. Carey

	Name:	 	William V. Carey
	Title:	 	Vice President
	
	 IMPERIAL SP. Z O.O.
 as a
Guarantor

		
	By:	 	 /s/ William V. Carey

	Name:	 	William V. Carey
	Title:	 	Board Member
		
	By:	 	 /s/ Evangelos Evangelou

	Name:	 	Evangelos Evangelou
	Title:	 	Board Member
		
	By:	 	 /s/ Christopher Biedermann

	Name:	 	Christopher Biedermann
	Title:	 	Board Member
	
	 KROKUS SP. Z O.O.
 as a
Guarantor

		
	By:	 	 /s/ William V. Carey

	Name:	 	William V. Carey
	Title:	 	Vice President
		
	By:	 	 /s/ Evangelos Evangelou

	Name:	 	Evangelos Evangelou
	Title:	 	Vice President

			
	THE BANK OF NEW YORK,
	as Trustee
		
	By:	 	 /s/ Peter Howard

	Name:	 	Peter Howard
	Title:	 	Vice President
	
	 ING BANK N.V., London Branch
 as Note
Security Agent

		
	By:	 	 /s/ Martyn Bruins

	Name:	 	Martyn Bruins
	Title:	 	Managing DirectorAmended and Restated Employment Agreement dated as of June 29, 2006

 Exhibit 10.1 
  
 EMPLOYMENT AND NON-COMPETITION AGREEMENT 
 (Tom Bryant) 
  
 THIS
EMPLOYMENT AND NON-COMPETITION AGREEMENT (the “Agreement”) is executed as of this 29th day of June, 2006, and effective as of April 28, 2006 (the “Effective Date”), by and between Tempur-Pedic International,
Inc., a Delaware corporation (the “Company”), and Tom Bryant, an individual (“Employee”). 
  
 RECITALS 
  
 The Employee is currently a party to an Amended and Restated Employment Agreement, dated as of October 4, 2002 with a subsidiary of the Company (the
“Former Agreement”). Prior to the Effective Date the Employee had held the position of President of the Company, and on the Effective Date the Employee was also named the Chief Executive Officer of the Company. The Company and the
Employee are entering into this Agreement in order to evidence the terms under which the Employee will be employed by the Company from and after the Effective Date. This Agreement supersedes and replaces the terms of the Former Agreement.

  
 In consideration of the premises and the mutual agreements and
covenants contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by the Company and Employee, 
  
 IT IS HEREBY AGREED AS FOLLOWS: 
  
 ARTICLE I 
  
 EMPLOYMENT 
  
 1.1 Term of Employment. As of the Effective Date, the Company agrees to employ Employee as the President and Chief Executive Officer of the
Company, and Employee accepts employment by the Company, for the period commencing on the Effective Date and ending on April 30, 2008 (the “Initial Term”), subject to earlier termination as set forth in Article III below.
Unless earlier terminated in accordance with Article III, following the expiration of the Initial Term, this Agreement shall be automatically renewed for successive one-year periods (collectively, the “Renewal Terms”; individually,
a “Renewal Term”) unless, at least ninety (90) days prior to the expiration of the Initial Term or the then current Renewal Term, either party provides the other with a written notice of intention not to renew, in which case
the Employee’s employment with the Company, and the Company’s obligations hereunder, shall terminate as of the end of the Initial Term or said Renewal Term, as applicable. Except as otherwise expressly provided herein, the terms and
conditions of this Agreement during any Renewal Term shall be the same as the terms in effect immediately prior to such renewal, subject to any such changes or modifications as mutually may be agreed between the parties as evidenced in a written
instrument signed by both the Company and Employee. 
  
 1.2
Position and Duties. Employee shall be employed in the position of President and Chief Executive Officer. In such capacity, Employee shall be subject to the authority of, and shall report to, the Company’s Board of Directors Employee
shall devote Employee’s entire business time, loyalty, attention and energies exclusively to the business interests of the Company while employed by the Company, and shall perform his duties and responsibilities diligently and to the best of
his ability. 
  
 ARTICLE II 
  
 COMPENSATION AND OTHER BENEFITS 
  

 1 

 2.1 Base Salary. The Company shall pay Employee an annual salary of $600,000 (“Base
Salary”), payable in accordance with the normal payroll practices of the Company. The Employee’s Base Salary will be reviewed and be subject to adjustment by the Board of Directors or its Compensation Committee on or about
January 1 of each year beginning with January 1, 2007. 
  
 2.2 Performance Bonus. Employee will be eligible to earn an annual performance-based bonus based on a formula approved by the Company’s Board of Directors or its Compensation Committee and incorporated herein by this reference
for 2006 and each subsequent full or pro-rata portion of the fiscal year during which Employee is employed by the Company (a “Bonus Year”), the terms and conditions of which as well as Employee’s entitlement thereto shall be
determined annually in the sole discretion of the Company’s Board of Directors or its Compensation Committee (the “Performance Bonus”). The amount of the Performance Bonus will vary based on the achievement of performance
criteria in the formula established by the Company’s Board of Directors or Compensation Committee, but the formula will be set to target a Performance Bonus equal to 100% of Base Salary as of January 1st of the Bonus Year ($600,000 for 2006) if the performance criteria in the formula are met, and the actual bonus awarded based on the performance
criteria may be more or less than the target amount of 100%. 
  
 2.3 Benefit Plans. Employee will be eligible to participate in the Company’s retirement plans that are qualified under Section 401(a) of the Internal Revenue Code of 1986, as amended, and in the Company’s employee
welfare benefit plans that are generally applicable to all executive employees of the Company (the “Plans”), in accordance with the terms and conditions thereof. 
  
 2.4 Expenses. The Company shall reimburse Employee for all authorized and approved expenses incurred in the course of
the performance of Employee’s duties and responsibilities pursuant to this Agreement and consistent with the Company’s policies with respect to travel, entertainment and miscellaneous expenses, and the requirements with respect to the
reporting of such expenses. 
  
 2.5 Automobile Allowance.
The Company shall pay to Employee an automobile allowance of $600.00 per month. 
  
 2.6 Vacation. Employee shall be entitled to vacation in any calendar year in accordance with the Company’s general vacation policies for senior executive employees. 
  
 2.7 Grant of Stock Options. Not later than June 30, 2006 the
Company will grant Employee options to purchase 700,000 shares of the Company’s common stock on terms to be determined by the Compensation Committee, which will include the terms outlined on Annex A. 
  
 ARTICLE III 
  
 TERMINATION 
  
 3.1 Right to Terminate; Automatic Termination. 
  
 (a) Termination by Company Without Cause. Subject to
Section 3.2, the Company may terminate Employee’s employment and all of the Company’s obligations under this Agreement at any time and for any reason. 
  
 (b) Termination by Employee for Good Reason. Subject to Section 3.2, Employee may terminate his
employment obligation hereunder (but not his obligation under Article IV hereof) for “Good Reason” (as hereinafter defined) if Employee gives written notice thereof to the Company within thirty (30) days of the event he deems to
constitute Good Reason (which notice shall specify the grounds upon which such notice is given) and the Company fails, within 30 days of receipt of such notice, to cure or rectify the grounds for such Good Reason termination set forth in such
notice. “Good Reason” shall mean any of the following: (i) relocation of Employee’s principal workplace over 60 miles from the Company’s existing workplaces without the consent of Employee (which consent shall not be
unreasonably withheld, delayed or conditioned), (ii) the Employee is demoted from the position of Chief Executive Officer of the Company or (ii) the Company’s 

  

 2 

 
material breach of this Agreement which is not cured within 30 days after receipt by the Company from Employee of written notice of such breach. 

 
 (c) Termination by Company For Cause. Subject to
Section 3.2, the Company may terminate Employee’s employment and all of the Company’s obligations under this Agreement at any time “For Cause” (as defined below) by giving notice to Employee stating the basis for such
termination, effective immediately upon giving such notice or at such other time thereafter as the Company may designate. “For Cause” shall mean any of the following: (i) Employee’s willful and continued failure to
substantially perform the reasonably assigned duties with the Company which are consistent with Employee’s position and job description referred to in this Agreement, other than any such failure resulting from incapacity due to physical or
mental illness, after a written notice is delivered to Employee by the Board of Directors of the Company which specifically identifies the manner in which Employee has not substantially performed the assigned duties, (ii) Employee’s
willful engagement in illegal conduct which is materially and demonstrably injurious to the Company, (iii) Employee’s conviction by a court of competent jurisdiction of, or his pleading guilty or nolo contendere to, any felony, or
(iv) Employee’s commission of an act of fraud, embezzlement, or misappropriation against the Company, including, but not limited to, the offer, payment, solicitation or acceptance of any unlawful bribe or kickback with respect to the
Company’s business. For purposes of this paragraph, no act, or failure to act, on Employee’s part shall be considered “willful” unless done, or omitted to be done, in knowing bad faith and without reasonable belief that the
action or omission was in, or not opposed to, the best interests of the Company. Any act, or failure to act, expressly authorized by a resolution duly adopted by the Board of Directors or based upon the written advice of counsel for the Company
shall be conclusively presumed to be done, or omitted to be done, in good faith and in the best interests of the Company. Notwithstanding the foregoing, Employee shall not be deemed to have been terminated For Cause unless and until there shall have
been delivered to Employee a copy of a resolution, duly adopted by the Board of Directors at a meeting of the Board called and held for such purpose (after reasonable notice to Employee and an opportunity for Employee, together with Employee’s
counsel, to be heard before the Board at a duly called meeting at which a quorum is present), finding that in the good faith opinion of the Board of Directors Employee committed the conduct set forth above in (i), (ii), (iii) or (iv) of
this Section 3.1 (c) and specifying the particulars thereof in detail. 
  
 (d) Termination Upon Death or Disability. Subject to Section 3.2, Employee’s employment and the Company’s
obligations under this Agreement shall terminate: (i) automatically, effective immediately and without any notice being necessary, upon Employee’s death; and (ii) in the event of the disability of Employee, by the Company giving
notice of termination to Employee. For purposes of this Agreement, “disability” means the inability of Employee, due to a physical or mental impairment, for 90 days (whether or not consecutive) during any period of 360 days, to perform,
with reasonable accommodation, the essential functions of the work contemplated by this Agreement. In the event of any dispute as to whether Employee is disabled, the matter shall be determined by the Company’s Board of Directors in
consultation with a physician selected by the Company’s health or disability insurer or another physician mutually satisfactory to the Company and the Employee. The Employee shall cooperate with the efforts to make such determination or be
subject to immediate discharge. Any such determination shall be conclusive and binding on the parties. Any determination of disability under this Section 3.1 is not intended to alter any benefits any party may be entitled to receive under any
long-term disability insurance policy carried by either the Company or Employee with respect to Employee, which benefits shall be governed solely by the terms of any such insurance policy. Nothing in this subsection shall be construed as limiting or
altering any of Employee’s rights under State workers compensation laws or State or federal Family and Medical Leave laws. 
  
 3.2 Rights Upon Termination. 
  
 (a) Section 3.1(a) and 3.1(b) Termination. If Employee’s employment terminates pursuant to Section 3.1(a) or 3.1(b)
hereof, Employee shall have no further rights against the Company hereunder, except for the right to receive, following execution of a release and waiver in form satisfactory to the Company, (i) any unpaid Base Salary, the value of any accrued
but unused vacation, a pro-rata portion (based on the number of days of the Bonus Year prior to the effective date of termination) of any Performance Bonus that would be payable with respect to the Bonus Year in which the termination occurs,
calculated based on the 100% target amount referred to in Section 2.2, and any stock options to which the Employee is entitled under his stock option agreements, (ii) payment of Base Salary for the duration of the Initial Term or the
Renewal Term, as 

  

 3 

 
applicable, but in any event not less than a period of one year from the effective date of termination (the “Severance Period”), payable in
accordance with the normal payroll practices of the Company, (iii) reimbursement of expenses to which Employee is entitled under Section 2.4 hereof, and (iv) continuation of the welfare plans of the Company as detailed in
Section 2.3 hereof for the duration of the Severance Period. 
  
 (b) Section 3.1(c) and 3.1(d) Termination; Voluntary Termination by Employee not for Good Reason. If Employee’s employment is terminated pursuant to Sections 3.1(c) or 3.1(d) hereof, or if Employee
quits employment (other than for Good Reason) notwithstanding the terms of this Agreement, Employee or Employee’s estate shall have no further rights against the Company hereunder, except for the right to receive, following execution of a
release and waiver in form satisfactory to the Company, (i) any unpaid Base Salary, (ii) reimbursement of expenses to which Employee is entitled under Section 2.4 hereof, and (iii) in the case of a termination pursuant to
Section 3.1(d) hereof, the value of any accrued but unused vacation, a pro-rata portion (based on the number of days of the Bonus Year prior to the effective date of termination) of any Performance Bonus that would be payable with respect to
the Bonus Year in which the termination occurs, calculated at the 100% target level referred to in Section 2.2, and any stock options to which the Employee is entitled under his stock option agreements. 
  
 (c) Non-Renewal. In the event that either the Company
or the Employee elect not to renew the term of this Agreement as provided in Section 1.1, then the Employee shall have no further rights against the Company hereunder, except the right to receive, following execution of a release and waiver in
form satisfactory to the Company, the items described in clauses (i)-(iii) of paragraph (b) above. 
  
 ARTICLE IV 
  
 CONFIDENTIALITY; NON-COMPETITION; NONSOLICITATION 
  
 4.1 Covenants Regarding Confidential Information, Trade Secrets and Other Matters. Employee covenants and agrees as follows: 
  
 (a) Definitions. For purposes of this Agreement, the following terms are defined as follows: 
  
 (1) “Trade Secret” means all information
possessed by or developed for the Company or any of its subsidiaries, including, without limitation, a compilation, program, device, method, system, technique or process, to which all of the following apply: (i) the information derives
independent economic value, actual or potential, from not being generally known to, and not being readily ascertainable by proper means by, other persons who can obtain economic value from its disclosure or use and (ii) the information is the
subject of efforts to maintain its secrecy that are reasonable under the circumstances. 
  
 (2) “Confidential Information” means information, to the extent it is not a Trade Secret, which is possessed by or
developed for the Company or any of its subsidiaries and which relates to the Company’s or any of its subsidiaries’ existing or potential business or technology, which information is generally not known to the public and which information
the Company or any of its subsidiaries seeks to protect from disclosure to its existing or potential competitors or others, including, without limitation, for example: business plans, strategies, existing or proposed bids, costs, technical
developments, existing or proposed research projects, financial or business projections, investments, marketing plans, negotiation strategies, training information and materials, information generated for client engagements and information stored or
developed for use in or with computers. Confidential Information also includes information received by the Company or any of its subsidiaries from others which the Company or any of its subsidiaries has an obligation to treat as confidential.

  
 (b) Nondisclosure of Confidential
Information. Except as required in the conduct of the Company’s or any of its subsidiaries’ business or as expressly authorized in writing on behalf of the Company or any of its subsidiaries, Employee shall not use or disclose,
directly or indirectly, any Confidential Information during the period of his employment with the Company. In addition, following the termination for any reason of Employee’s employment with the Company, Employee shall not use or disclose,
directly or indirectly, any 

  

 4 

 
Confidential Information. This prohibition does not apply to Confidential Information after it has become generally known in the industry in which the
Company conducts its business. This prohibition also does not prohibit Employee’s use of general skills and know-how acquired during and prior to employment by the Company, as long as such use does not involve the use or disclosure of
Confidential Information or Trade Secrets. 
  
 (c) Trade Secrets. During Employee’s employment by the Company, Employee shall do what is reasonably necessary to prevent unauthorized misappropriation or disclosure and threatened misappropriation or disclosure of the
Company’s or any of its subsidiaries’ Trade Secrets and, after termination of employment, Employee shall not use or disclose the Company’s or any of its subsidiaries’ Trade Secrets as long as they remain, without
misappropriation, Trade Secrets. 
  
 (d) The
provisions of paragraphs (b) and (c) above will not be deemed to prohibit any disclosure that is required by law or court order, provided that Employee has not intentionally taken actions to trigger such required disclosure and the Company
is given reasonable prior notice and an opportunity to contest or minimize such disclosure. 
  
 4.2 Non-competition. 
  
 (a) During Employment. During Employee’s employment hereunder, Employee shall not engage, directly or indirectly, as an employee, officer, director, partner, manager, consultant, agent, owner (other than a
minority shareholder or other equity interest of not more than 1% of a company whose equity interests are publicly traded on a nationally recognized stock exchange or over-the-counter) or in any other capacity, in any competition with the Company or
any of its subsidiaries. 
  
 (b) Subsequent to
Employment. For a two year period following the termination of Employee’s employment for any reason or without reason, Employee shall not in any capacity (whether in the capacity as an employee, officer, director, partner, manager,
consultant, agent or owner (other than a minority shareholder or other equity interest of not more than 1% of a company whose equity interests are publicly traded on a nationally recognized stock exchange or over-the-counter), directly or indirectly
advise, manage, render or perform services to or for any person or entity which is engaged in a business competitive to that of the Company or any of its subsidiaries within any geographical location wherein the Company or any of its subsidiaries
produces, sells or markets its goods and services at the time of such termination or within a one-year period prior to such termination. 
  
 4.3 Nonsolicitation. For a two year period following the termination of Employee’s employment for any reason or without reason, Employee shall
not solicit or induce any person who was an employee of the Company or any of its subsidiaries on the date of Employee’s termination or within three months prior to leaving his or her employment with the Company or any of its subsidiaries.

  
 4.4 Return of Documents. Immediately upon termination
of employment, Employee will return to the Company, and so certify in writing to the Company, all the Company’s or any of its subsidiaries’ papers, documents and things, including information stored for use in or with computers and
software applicable to the Company’s and its subsidiaries’ business (and all copies thereof), which are in Employee’s possession or under Employee’s control, regardless whether such papers, documents or things contain
Confidential Information or Trade Secrets. 
  
 4.5 No
Conflicts. To the extent that they exist, Employee will not disclose to the Company any of Employee’s previous employer’s confidential information or trade secrets. Further, Employee represents and warrants that Employee has not
previously assumed any obligations inconsistent with those of this Agreement and that employment by the Company does not conflict with any prior obligations to third parties. 
  
 4.6 Agreement on Fairness. Employee acknowledges that: (i) this Agreement has been specifically bargained
between the parties and reviewed by Employee, (ii) Employee has had an opportunity to obtain legal counsel to review this Agreement, and (iii) the covenants made by and duties imposed upon Employee hereby are fair, reasonable and minimally
necessary to protect the legitimate business interests of the Company, and 

  

 5 

 
such covenants and duties will not place an undue burden upon Employee’s livelihood in the event of termination of Employee’s employment by the
Company and the strict enforcement of the covenants contained herein. 
  
 4.7 Equitable Relief and Remedies. Employee acknowledges that any breach of this Agreement will cause substantial and irreparable harm to the Company for which money damages would be an inadequate remedy. Accordingly, notwithstanding
the provisions of Article V below, the Company shall in any such event be entitled to obtain injunctive and other forms of equitable relief to prevent such breach and the prevailing party shall be entitled to recover from the other, the prevailing
party’s costs (including, without limitation, reasonable attorneys’ fees) incurred in connection with enforcing this Agreement, in addition to any other rights or remedies available at law, in equity, by statute or pursuant to Article V
below. 
  
 ARTICLE V 
  
 AGREEMENT TO SUBMIT ALL EXISTING OR FUTURE DISPUTES 
 TO BINDING ARBITRATION 
  
 The Company and Employee agree that any controversy or claim arising out of or related to this Agreement or Employee’s employment with or termination
by the Company that is not resolved by the parties shall be settled by arbitration administered by the American Arbitration Association under its National Rules for the Resolution of Employment Disputes. Said arbitration shall be conducted in
Lexington, Kentucky. The parties further agree that the arbitrator may resolve issues of contract interpretation as well as law and award damages, if any, to the extent provided by the Agreement or applicable law. The parties agree that the costs of
the arbitrator’s services shall be borne by the Company. The parties further agree that the arbitrator’s decision will be final and binding and enforceable in any court of competent jurisdiction. In addition to the A.A.A.’s
Arbitration Rules and unless otherwise agreed to by the parties, the following rules shall apply: 
  
 (a) Each party shall be entitled to discovery exclusively by the following means: (i) requests for admission, (ii) requests for
production of documents, (iii) up to 15 written interrogatories (with any subpart to be counted as a separate interrogatory), and (iv) depositions of no more than six individuals. 
  
 (b) Unless the arbitrator finds that delay is reasonably
justified or as otherwise agreed to by the parties, all discovery shall be completed, and the arbitration hearing shall commence within five months after the appointment of the arbitrator. 
  
 (c) Unless the arbitrator finds that delay is reasonably
justified, the hearing will be completed, and an award rendered within 30 days of commencement of the hearing. 
  
 The arbitrator’s authority shall include the ability to render equitable types of relief and, in such event, any aforesaid court may enter an order
enjoining and/or compelling such actions or relief ordered or as found by the arbitrator. The arbitrator also shall make a determination regarding which party’s legal position in any such controversy or claim is the more substantially correct
(the “Prevailing Party”) and the arbitrator shall require the other party to pay the legal and other professional fees and costs incurred by the Prevailing Party in connection with such arbitration proceeding and any necessary court
action. 
  
 Notwithstanding the foregoing provisions of this
Article V, the parties expressly agree that a court of competent jurisdiction may enter a temporary restraining order or an order enjoining a breach of Article IV of this Agreement without submission of the underlying dispute to an arbitrator. Such
remedy shall be cumulative and nonexclusive, and shall be in addition to any other remedy to which the parties may be entitled. 
  
 ARTICLE VI 
  
 GENERAL PROVISIONS 
  
 6.1 Notices. Any and all notices provided for in this Agreement shall be given in writing and shall be 

  

 6 

 
deemed given to a party at the earlier of (i) when actually delivered to such party, or (ii) when mailed to such party by registered or certified
mail (return receipt requested) or sent to such party by courier, confirmed by receipt, and addressed to such party at the address designated below for such party as follows (or to such other address for such party as such party may have substituted
by notice pursuant to this Section 6.1): 
  

			
	 (a) If to the Company:
	  	Tempur-Pedic International, Inc.
	 	  	 1713 Jaggie Fox Way

	 	  	 Lexington, KY 40511

	 	  	 Attention: Board of Directors

		
	 (b) If to Employee:
	  	Tom Bryant
	 	  	 c/o Tempur-Pedic International, Inc.

	 	  	 1713 Jaggie Fox Way

	 	  	 Lexington, KY 40511

  
 6.2 Entire
Agreement. This Agreement contains the entire understanding and the full and complete agreement of the parties and, effective as of the Closing Date, supersedes and replaces any prior understandings and agreements among the parties with respect
to the subject matter hereof (including, without limitation, the Former Agreement). The Employee hereby acknowledges and agrees that (a) no amounts are owed to him under the Former Agreement, and (b) effective as of the Effective Date, the
Former Agreement shall terminate and be of no further force or effect. 
  
 6.3 Amendment. This Agreement may be altered, amended or modified only in a writing, signed by both of the parties hereto. Headings included in this Agreement are for convenience only and are not intended to limit or expand the
rights of the parties hereto. References to Sections herein shall mean sections of the text of this Agreement, unless otherwise indicated. 
  
 6.4 Assignability. This Agreement and the rights and duties set forth herein may not be assigned by either of the parties without the express
written consent of the other party. This Agreement shall be binding on and inure to the benefit of each party and such party’s respective heirs, legal representatives, successors and assigns. 
  
 6.5 Severability. If any court of competent jurisdiction determines
that any provision of this Agreement is invalid or unenforceable, then such invalidity or unenforceability shall have no effect on the other provisions hereof, which shall remain valid, binding and enforceable and in full force and effect, and such
invalid or unenforceable provision shall be construed in a manner so as to give the maximum valid and enforceable effect to the intent of the parties expressed therein. 
  
 6.6 Waiver of Breach. The waiver by either party of the breach of any provision of this Agreement shall not operate
or be construed as a waiver of any subsequent breach by either party. 
  
 6.7 Governing Law; Construction. This Agreement shall be governed by the internal laws of the State of Kentucky, without regard to any rules of construction concerning the party responsible for the drafting hereof. 
  
 6.8. Tax Compliance. The Company may withhold from any amounts payable
hereunder any amounts required to be withheld under federal, state or local law and any other deductions authorized by Employee. If any other payment otherwise due hereunder would be, when otherwise due, subject to additional taxes and interest
under Section 409A of the Internal Revenue Code of 1986, as amended, then such payment shall be deferred to the extent required to avoid such additional taxes and interest. 
  

 7 

 IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year written above.

  

	
	 COMPANY:
  

	 TEMPUR-PEDIC INTERNATIONAL, INC.
  

	EMPLOYEE:
	
	/s/    H. THOMAS BRYANT
	
	 WITNESSED BY:
  

	
	 Date:
  

  

 8

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