EXHIBIT 10.10
-------------
INDEMNIFICATION AGREEMENT
This AGREEMENT is made as of ___________________________________, by
Leggett & Platt, Incorporated, a Missouri corporation ("Leggett") and
____________________________________, of _______________________________________
("Indemnitee").
RECITALS
Indemnitee is a director and/or officer of Leggett and in such capacity or
capacities is performing a valuable service for Leggett.
The Restated Articles of Incorporation and By-Laws of Leggett provide for
the indemnification of the directors and officers of Leggett and indemnification
is also authorized by Section 351.355 of the General and Business Corporation
Law of Missouri (the "Indemnification Statute").
The Indemnification Statute and Leggett's Restated Articles of
Incorporation and By-Laws specifically provide that they are not exclusive as to
the authority to indemnify; thus, they contemplate that indemnification
agreements may be entered into between Leggett and its directors and officers.
In accordance with the authorization provided by the Indemnification
Statute, Leggett has purchased and presently maintains a policy or policies of
directors and officers liability insurance ("D&O Insurance"), covering certain
liabilities which may be incurred by Leggett's directors and officers in the
performance of their services for Leggett and for other enterprises.
Leggett's Board of Directors believes the policies of D&O Insurance and the
indemnification provided for in Leggett's Restated Articles of Incorporation and
By-Laws are not fully adequate to provide appropriate indemnification protection
to Leggett's directors and officers. To provide such protection and thereby
induce Indemnitee to serve or continue to serve as a director and/or officer of
Leggett, Leggett has determined and agreed to enter into this agreement with
Indemnitee.
NOW THEREFORE, in consideration of the premises and Indemnitee's service as
a director and/or officer after the date hereof, Leggett and Indemnitee do agree
as follows:
1. DEFINITIONS
In this Agreement the following terms have the following meanings:
The term "another enterprise" shall mean any corporation (other than
Leggett), partnership, joint venture, trust, employee benefit plan or other
legal entity or enterprise.
The term "defense" when used with respect to any proceeding shall include
investigations of any proceeding as well as appeals in any proceeding and shall
also include any defense by way of cross claim or counterclaim.
The term "fines" shall include any excise taxes assessed on Indemnitee with
respect to any employee benefit plan as well as penalties of all types.
The term "proceeding" shall mean any threatened, pending or completed
action, suit or proceeding (including those by or in the right of Leggett)
whether civil, criminal, administrative or investigative or otherwise and
whether formal or informal.
1
The term "serving at the request of Leggett" shall include any service as a
director, officer, employee or agent of Leggett which imposes duties on, or
involves services by, Indemnitee with respect to any employee benefit plan, it
participants or beneficiaries.
2. INDEMNIFICATION -- GENERAL
Leggett shall indemnify and hold harmless Indemnitee to the fullest extent
permitted or authorized by applicable law. The term "applicable law" means (i)
the Indemnification Statute (other than subsection 6 thereof and any other
subsection comparable in purpose to subsection 6) as in effect on May 7, 1986
and as thereafter amended (but in the case of any such amendment, only to the
extent such amendment permits Leggett to provide broader indemnification rights
then the Indemnification Statute permitted Leggett to provide immediately prior
to such amendment) and (ii) any other statutory indemnification provisions
adopted after May 7, 1986.
3. ADDITIONAL INDEMNIFICATION
Leggett shall further indemnify and hold harmless Indemnitee if Indemnitee
was or is a party or is threatened to be made a party to any proceeding
(including any proceeding by or in the right of Leggett) by reason of the fact
that Indemnitee is or was a director, officer, employee or agent of Leggett, or
is or was serving at the request of Leggett (which request need not be in
writing) or on behalf of Leggett as a director, officer, employee or agent of
another enterprise or by reason of anything done or not done by him in any such
capacities. The indemnification required by this section shall be made against
any and all judgments, fines, amounts paid in settlement and reasonable expenses
(including attorneys' fees), actually incurred by Indemnitee in connection with
the proceeding in question.
4. MAINTENANCE OF D&O INSURANCE AND INDEMNIFICATION
(a) Leggett represents that it presently has the following policies of D&O
Insurance in force (the "D&O Policies"):
Insurer Policy No. Amount Deductible
------- ---------- ------ ----------
So long as Indemnitee shall continue to serve as a director or officer of
Leggett (or shall continue at the request of Leggett or on behalf of Leggett to
serve as a director, officer, employee or agent of another enterprise) and
thereafter so long as Indemnitee shall be subject to any possible claim or
proceeding by reason of the fact that Indemnitee was a director or officer of
Leggett (or served in any of said other capacities), Leggett will purchase and
maintain in effect for the benefit of Indemnitee one or more valid, binding and
enforceable policies of D&O Insurance providing, in all respects, coverage at
least comparable to that provided pursuant to the D&O Policies in force on the
date hereof.
(b) Notwithstanding Section 4(a) hereof, Leggett shall not be required to
maintain D&O Insurance in effect if such insurance is not reasonably available
or if, in the reasonable business judgment of the Board of Directors of Leggett
as it may exist from time to time, either (i) the premium cost for such D&O
Insurance is substantially disproportionate to the amount of coverage or (ii)
the coverage provided by such D&O Insurance is so limited by exclusions that
there is insufficient benefit provided by such D&O Insurance.
(c) If Leggett, acting under Section 4(b) hereof, does not purchase and
maintain in effect D&O Insurance, Leggett shall indemnify and hold harmless
Indemnitee to the full extent of the coverage which would otherwise have been
provided for the benefit of Indemnitee pursuant to the D&O Policies.
2
5. LIMITATIONS ON CERTAIN INDEMNIFICATION
Leggett will not hold Indemnitee harmless or provide indemnification
pursuant to Sections 2, 3 or 4 hereof:
(i) for amounts indemnified by Leggett other than pursuant to this
Agreement and amounts paid pursuant to policies of D&O Insurance;
(ii) in respect to remuneration paid to Indemnitee if it shall be
determined by a final judgment or other final adjudication that such
remuneration was in violation of law;
(iii) on account of any suit for any accounting of profits made from
the purchase or sale by Indemnitee of securities of Leggett pursuant to
Section 16(b) of the Securities Exchange Act of 1934 and amendments thereto
or similar provisions of any federal, state or local law;
(iv) on account of Indemnitee's conduct which is finally adjudged by a
court to have been knowingly fraudulent, deliberately dishonest or willful
misconduct; or
(v) if a final adjudication by a court having jurisdiction in the
matter shall determine that such indemnification is not lawful.
6. NOTIFICATION AND DEFENSE OF CLAIM
After receipt by Indemnitee of notice of the commencement of any
proceeding, Indemnitee will, if a claim in respect thereof may be made against
Leggett under this Agreement, promptly notify Leggett. With respect to any such
proceeding as to which Indemnitee notifies Leggett of the commencement thereof:
(i) Leggett will be entitled to participate therein at is own expense.
(ii) Except as otherwise provided in the next paragraph, Leggett,
jointly with any other indemnifying party similarly notified, will be
entitled to assume the defense thereof, with counsel reasonably
satisfactory to Indemnitee. After notice from Leggett to indemnitee of
Leggett's election to assume the defense thereof, Leggett will not be
liable to Indemnitee under this Agreement for any legal or other expenses
subsequently incurred by Indemnitee in the defense thereof other than
reasonable costs of investigation or as noted in the next paragraph of this
subsection (ii).
Indemnitee may employ his own counsel in such proceeding but the fees
and expenses of such counsel incurred after notice from Leggett of its
assumption of the defense thereof shall be at the expense of Indemnitee
unless (a) the employment of counsel by Indemnitee has been authorized by
Leggett or (b) Indemnitee shall have reasonably concluded that there may be
a conflict of interest between Leggett and Indemnitee in the conduct of the
defense of such proceeding, or (c) Leggett shall not in fact have employed
counsel to assume the defense of such proceeding, in each of which cases
the fees and expenses of Indemnitee's counsel shall be at the expense of
Leggett. Leggett shall not be entitled to assume the defense of any
proceeding brought by or on behalf of Leggett or as to which Indemnitee
shall have made the conclusion provided for in clause (b) of this
subsection (ii).
(iii) Leggett shall not be liable to indemnify Indemnitee under this
Agreement for any amounts paid in settlement of any proceeding effected
without Leggett's written consent. Leggett shall not settle any proceeding
in any manner which would impose any penalty or limitation on Indemnitee
without Indemnitee's written consent. Neither Leggett nor Indemnitee will
unreasonably withhold their consent to any proposed settlement.
3
7. ADVANCE OF EXPENSES, JUDGMENTS, ETC.
The expense (including attorneys' fees) incurred by Indemnitee in defending
any proceeding shall be advanced by Leggett at the request of the Indemnitee.
Any judgments, fines or amounts to be paid in settlement shall also be advanced
by Leggett to Indemnitee upon request. If it shall ultimately be determined
that Indemnitee was not entitled to be indemnified, or was not entitled to be
fully indemnified, Indemnitee shall repay to Leggett all amounts advanced, or
the appropriate portion thereof, so advanced.
8. RIGHT OF INDEMNITEE TO BRING SUIT
If a claim of indemnification or a claim for an advance under this
Agreement is not paid in full by Leggett within 90 or 15 days, respectively,
after a written claim has been made to Leggett, Indemnitee may bring suit
against Leggett to recover the unpaid amount of the claim. If Indemnitee is
successful in whole or in part in such suit, Indemnitee shall also be paid the
expense of prosecuting such claim.
9. CONTINUATION OF INDEMNITEE
All agreements and obligations of Leggett contained herein shall continue
during the period Indemnitee is a director, officer, employee or agent of
Leggett (of is or was serving at the request of Leggett or on behalf of Leggett
as a director, officer, employee or agent of another enterprise) and shall
continue thereafter so long as Indemnitee shall be subject to any possible
proceeding by reason of the fact that Indemnitee was a director, officer,
employee or agent of Leggett or serving in any other capacity referred to
herein.
10. OTHER RIGHTS AND REMEDIES
The indemnification and other rights provided by this Agreement shall not
be deemed exclusive of any other rights to which Indemnitee may be entitled
under any provision of law, Leggett's Restated Articles of Incorporation, any
Leggett By-Law, other agreement, vote of shareholders or disinterested directors
or otherwise, both as to action in Indemnitee's official capacity and as to
action in another capacity while occupying any of the positions or having any of
the relationships referred to in this Agreement, and shall continue after
Indemnitee has ceased to occupy such position or have such relationship.
11. SEVERABILITY
If any provision of this Agreement shall be held to be invalid, illegal or
unenforceable (a) the validity, legality and enforceability of the remaining
provisions of this Agreement shall not be in any way affected or impaired
thereby, and (b) to the fullest extent possible, the provisions of this
Agreement shall be construed so as to give effect to the intent manifested by
the provision held invalid, illegal or unenforceable.
Each section of this Agreement is a separate and independent portion of
this Agreement. If the indemnification to which Indemnitee is entitled as
respects any aspect of any claim varies between two or more sections of this
Agreement, that section providing the most comprehensive indemnification shall
apply.
12. MODIFICATION AND WAIVER
No supplement or amendment of this Agreement shall be binding unless
executed in writing by both of the parties. No waiver of any of the provisions
of this Agreement shall be binding unless executed in writing by the person
making the waiver nor shall such waiver constitute a continuing waiver.
4
13. NOTICES
All notices, requests, demand and other communications hereunder shall be
in writing and shall be deemed to have been duly given if (i) delivered by hand
and receipted for by the party to whom said notice or other communication shall
have been directed or if (ii) mailed by certified or registered mail with
postage prepaid, on the third business day after the date on which it is so
mailed:
(i) If to Indemnitee, to
or to such other address as may be furnished to Leggett by Indemnitee:
(ii) If to Leggett, to
Leggett & Platt, Incorporated
No. 1 Leggett Road
Carthage, MO 64836
or to such other address as may have been furnished to Indemnitee by
Leggett.
14. GOVERNING LAW
This Agreement shall be construed, enforced and governed by Missouri law.
15. HEIRS, SUCCESSORS AND ASSIGNS
This Agreement shall inure to the benefit of and be enforceable by the
Indemnitee's personal or legal representatives, executors, administrators,
heirs, devisees and legatees.
This Agreement is binding on the successors and assigns of Leggett.
Leggett will require any successor (whether direct or indirect, by purchase,
merger, consolidation or otherwise) to all or substantially all of the business
and/or assets of Leggett to expressly assume and agree to perform this Agreement
in the same manner and to the same extent that Leggett would be required to
perform it if no such succession had taken place (the assumption shall be by
agreement in form and substance reasonably satisfactory to Indemnitee).
16 MISCELLANEOUS
This Agreement does not create any right in Indemnitee to employment with
Leggett or its affiliates.
Leggett expressly confirms and agrees that is has entered into this
Agreement and assumed the obligations imposed on Leggett hereby in order to
induce Indemnitee to continue as a director and/or officer of Leggett and
acknowledges that Indemnitee is relying upon this Agreement in continuing in
such capacity or capacities.
All references herein in the masculine gender shall, when appropriate,
refer to the feminine gender.
In the event of any ambiguity, vagueness or other matter involving the
interpretation or meaning of this Agreement, this Agreement shall be liberally
construed so as to provide the Indemnitee the full benefits sets out herein.
5
Entered into on the day and year first above written.
ATTEST: LEGGETT & PLATT, INCORPORATED
By_____________________________ By____________________________________
______________________________________
Indemnitee
6