Letter Agreement Between Leggett & Platt, Incorporated and Harry M. Cornell, Jr. Regarding Whole Life Insurance Policy
This agreement is between Leggett & Platt, Incorporated and Harry M. Cornell, Jr. The company agrees to pay Mr. Cornell $185,978, including a tax gross-up, in exchange for him giving up a $250,000 whole life insurance policy previously provided as part of his employment. The payment will be held by the company and used to offset certain post-retirement expenses for Mr. Cornell, such as rental space and other services. The agreement is confirmed by both parties' signatures.
EXHIBIT 10.2
July 1, 2004
| Harry M. Cornell, Jr. | ||||||
| No. 1 Leggett Road | ||||||
| Carthage, MO 64836 | ||||||
| Re: | Whole Life Insurance Policy | |||||
| Our File No.: |
Dear Harry:
I am writing to confirm the agreement between you and Leggett & Platt, Incorporated (the “Company”) regarding a payment from the Company in exchange for life insurance coverage currently provided by the Company.
Under your employment agreement, the Company agreed to provide you with life insurance coverage, plus a tax gross-up, at least equal to the coverage provided before termination of employment. The Company had provided you with $250,000 of life insurance coverage under a whole life policy.
You have agreed to give up the life insurance coverage in exchange for a payment of $185,978, which includes a tax gross-up, from the Company. This payment will be held by the Company and used to offset certain post-retirement expenses for rental space and other services provided to you by the Company.
If you are in agreement with the terms of this exchange, please return a signed copy of this letter to me.
| Sincerely, | ||
| LEGGETT & PLATT, INCORPORATED | ||
| /s/ Ernest C. Jett | ||
| Ernest C. Jett | ||
| Vice President, General Counsel and Secretary | ||
| AGREED TO: | ||
| /s/ Harry M. Cornell Jr. | ||
| Harry M. Cornell Jr. | ||
