EX-10.2



 Exhibit 10.2 

TEMPUR SEALY INTERNATIONAL, INC. 

2013 EQUITY INCENTIVE PLAN 

Stock Option Agreement 

Scott Thompson 
 This
Stock Option Agreement dated as of September 4, 2015 (this “Agreement”), is between Tempur Sealy International, Inc., a corporation organized under the laws of the State of Delaware (the “Company”), and the
individual identified below, residing at the address there set out (the “Optionee”). 
 1. Grant of Option. Pursuant
and subject to the Company’s 2013 Equity Incentive Plan (as the same may be amended from time to time, the “Plan”), the Company grants to the Optionee an option (the “Option”) to purchase from the Company all
or any part of a total of 310,000 shares (the “Option Shares”) of the Company’s common stock, par value $0.01 per share (the “Stock”), at a price of $71.75 per share (the “Exercise Price”). The
“Grant Date” of this Option is September 4, 2015. 
 2. Character of Option. This Option is not to be treated
as an “incentive stock option” within the meaning of Section 422 of the Internal Revenue Code of 1986, as amended. 
 3.
Duration of Option. Subject to the next sentence, this Option shall expire at 11:59 p.m. (Lexington, KY local time) on the date immediately preceding the tenth anniversary of the Grant Date. However, this Option is subject to earlier termination
as provided in Section 5 below. 
 4. Exercise of Option. Until the expiration of this Option pursuant to Section 3 or
Section 5 of this Agreement, the Optionee may exercise it as to the number of Option Shares identified in the table below, in full or in part, at any time on or after the applicable exercise date or dates identified in the table. However,
subject to Section 5 of this Agreement, during any period that this Option remains outstanding after the Optionee’s employment with the Company and its Affiliates ends, the Optionee may exercise it only to the extent it was exercisable
immediately prior to the end of the Optionee’s employment. 
  

			
	 Number of Shares

in Each Installment
	  	 Initial Exercise Date

for Shares in Installment

	 103,334

103,333

103,333
	  	 First Anniversary of Grant Date

Second Anniversary of Grant Date

Third Anniversary of Grant Date


 Section 7.1(e) of the Plan sets forth the procedure for exercising this Option by paying cash or a check made payable to
the order of the Company in an amount equal to the aggregate Exercise Price of the Stock to be purchased, or by delivering other shares of Stock of equivalent Market Value, provided the Optionee has owned such shares of Stock for at least six
(6) months. The Optionee may also exercise this Option pursuant to a formal cashless exercise program as referred to in Section 7.1(e) of the Plan, subject to the terms and conditions referred to in Section 7.1(e) of the Plan. 







 5. Termination or Acceleration in Certain Cases. The Option shall be subject to early
termination prior to the tenth anniversary of the Grant Date and accelerated vesting in certain circumstances, as described below. Notwithstanding anything contained in this Section 5 to the contrary, however, in no event shall the Option
become or remain exercisable to any extent after the expiration date set forth in Section 3. 
 (a) By the Optionee’s Voluntary
Resignation Without Good Reason. If the Optionee’s employment with the Company or its Affiliates is terminated by the Optionee’s voluntary resignation without Good Reason, including by any Retirement that is not an Approved Retirement
or the Optionee’s other voluntary departure, (i) the Option shall remain exercisable for that number of Option Shares for which this Option shall have become exercisable pursuant to Section 4 above (i.e., the “vested” Option
Shares) as of the date of such termination of employment through the last day of the three (3) month period commencing on the later of (y) the expiration of any applicable Blackout Period (as defined below) in which such termination of
employment occurs and (z) the date of such termination of employment; and (ii) the Option Shares that have not yet become vested Option Shares pursuant to Section 4 above as of the date of such termination of employment shall
irrevocably expire, and the Optionee shall have no right to purchase any such unvested Option Shares. 
 (b) Termination by the Company
other than For Cause or By the Optionee for Good Reason. If the Optionee’s employment with the Company or its Affiliates is terminated by the Company or an Affiliate, other than For Cause, or by the Optionee for Good Reason or by reason of
Optionee’s employer ceasing to be an Affiliate (in the absence of a Change of Control), the Option shall remain outstanding and be or become exercisable to the extent otherwise provided in Section 4 for a three (3) year period
commencing on the date of such termination of employment; provided, that in the event the Optionee’s employment is terminated prior to January 1, 2017, the number of Option Shares otherwise subject to the Option shall be pro-rated
downward based on the actual number of full calendar months that elapsed since the Grant Date prior to such termination of employment, expressed as a fraction of the total months between the Grant Date and January 1, 2017. For example, if the
Optionee is granted an Option to purchase 310,000 Option Shares on September 4, 2015 and Optionee’s employment is terminated by the Company or any of its Affiliates other than For Cause on September 1, 2016, the Option Shares subject
to the Option will be adjusted downward by 26.66% (to reflect that 11 total months have elapsed out of a total of 15) to total 227,333 Option Shares (and the number of previously unvested Option Shares that become vested Option Shares on each
remaining anniversary of the Grant Date specified in Section 4 shall be correspondingly reduced as necessary to implement equal vesting amounts on each remaining anniversary of the Grant Date, subject to rounding to a whole share as necessary
to avoid fractional shares vesting). No pro-ration shall be made to the Option Shares for a termination of employment described in this Section 5(b) that occurs after January 1, 2017, and the Option shall remain outstanding and be or
become exercisable in accordance with the schedule provided in Section 4 for the three (3) year period commencing on the date of such termination of employment. Notwithstanding the foregoing, no Stock shall be issued and all of


  
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Optionee’s rights to the Option and the Option Shares hereunder shall be forfeited, expire and terminate unless (i) the Company shall have received a release of all claims from the
Optionee in the form required by the Employment Agreement (“Release and Waiver”) (and said Release and Waiver shall have become irrevocable in accordance with its terms) prior to the next anniversary of the Grant Date (or if earlier
the deadline established in the form of release delivered by the Company to Optionee for execution) and (ii) the Optionee shall have complied with the covenants set forth in Section 10 of this Agreement. 

(c) Termination by the Company For Cause. If the Company or any of its Affiliates terminates the Optionee’s employment For Cause,
the Option and all of the Option Shares (whether or not then vested) shall be forfeited and shall expire and terminate immediately as of the date of such termination of employment. 

(d) Death or Long-Term Disability. If the Optionee dies or the Company or any of its Affiliates terminates the Optionee’s
employment due to the Optionee’s long-term disability (within the meaning of Section 409A of the Code), all of the Option Shares that have not become vested Option Shares pursuant to Section 4 as of the date of death or such
termination of employment shall immediately become vested Option Shares, and the Option shall remain outstanding and exercisable until the one (1) year anniversary of the date of Optionee’s death or such termination of employment. 

(e) Approved Retirement. In the event of the Optionee’s Retirement, the Committee may consent to the continued vesting of the
Option in accordance with the annual vesting schedule specified in Section 4 and the extended exercisability of the vested Option Shares until the earlier of (i) the three (3) year anniversary of the date on which the Option becomes
fully vested, and (ii) the three (3) year anniversary of the date of such Retirement (an “Approved Retirement”); provided, that in the event the date of the Optionee’s Approved Retirement occurs prior to
January 1, 2017, the number of Option Shares otherwise subject to the Option shall be pro-rated downward based on the actual number of calendar months that elapsed since the Grant Date prior to such Approved Retirement (and, for the avoidance
of doubt, in the event of an Approved Retirement no pro-ration shall be made to the Option Shares if the Approved Retirement is effective on or after January 1, 2017). Notwithstanding the foregoing, no Stock shall be issued and all of
Optionee’s rights to the Option and the Option Shares hereunder shall be forfeited, expire and terminate unless (i) the Company shall have received a Release and Waiver (and said Release and Waiver shall have become irrevocable in
accordance with its terms) prior to the next anniversary of the Grant Date (or if earlier the deadline established in the form of release delivered by the Company to Optionee for execution) and (ii) the Optionee shall have complied with the
covenants set forth in Section 10 of this Agreement. If the Committee shall for any reason decline to consent to continued vesting on the Recipient’s Retirement, then the provisions of subsection (a) above shall instead apply. 

(f) Change of Control. If a Change of Control occurs then Section 9(a) of the Plan shall apply to the Options and Option Shares.


  
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 (g) For the purposes of this Agreement: 

(i) “Blackout Period” shall mean any period when employees are prohibited from making purchases and sales of the
Company’s securities. 
 (ii) “Change of Control” shall have the meaning set forth in the Plan, provided, that
no event or transaction shall constitute a Change of Control for purposes of this Agreement unless it also qualifies as a change of control for purposes of Section 409A of the Code. 

(iii) “Employee”, “employment,” “termination of employment” and “cease to be
employed,” and other words or phrases of similar import, shall mean the continued provision of substantial services to the Company or any of its Affiliates (or the cessation or termination of such services) whether as an employee,
consultant or director. 
 (iv) “Employment Agreement” shall mean the Employment Agreement dated as of September 4,
2015, between the Company and the Optionee. 
 (v) “For Cause” shall have the meaning set forth in the Employment
Agreement. 
 (vi) “Good Reason” shall mean have the meaning set forth in the Employment Agreement; and 

(vii) “Retirement” shall have the meaning assigned to such term in the applicable retirement policy of the Company or its
Affiliates as in effect at such time. 
 6. Transfer of Option. Except as provided in Section 6.4 of the Plan, neither this
Option nor any Option Shares nor any rights hereunder to the underlying Stock may be transferred except by will or the laws of descent and distribution, and during the Optionee’s lifetime, only the Optionee may exercise this Option. 

7. Incorporation of Plan Terms. Except as otherwise provided herein in Section 5 above, this Option is granted subject to all of
the applicable terms and provisions of the Plan, including but not limited to Section 8 of the Plan, “Adjustment Provisions”, and the limitations on the Company’s obligation to deliver Option Shares upon exercise set forth in
Section 10 of the Plan, “Settlement of Awards”. Capitalized terms used but not defined herein shall have the meaning assigned under the Plan. 

8. Miscellaneous. This Agreement shall be construed and enforced in accordance with the laws of the State of Delaware, without regard
to the conflict of laws principles thereof, and shall be binding upon and inure to the benefit of any successor or assign of the Company and any executor, administrator, trustee, guardian, or other legal representative of the Optionee. This
Agreement may be executed in one or more counterparts all of which together shall constitute one instrument. 

  
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 9. Tax Consequences. 

(a) The Company makes no representation or warranty as to the tax treatment of this Option, including upon the exercise of this Option or upon
the Optionee’s sale or other disposition of the Option Shares. The Optionee should rely on his/her own tax advisors for such advice. Notwithstanding the foregoing, the Optionee and the Company hereby acknowledge that both the Optionee and the
Company may be subject to certain obligations for tax withholdings, social security taxes and other applicable taxes associated with the vesting or exercise of the Options or the issuance of the Option Shares to the Optionee pursuant to this
Agreement. The Optionee hereby affirmatively consents to the transfer between his or her employee and the Company of any and all personal information necessary for the Company and his employer to comply with its obligations. 

(b) All amounts earned and paid pursuant to this Agreement are intended to be paid in compliance with, or on a basis exempt
from, Section 409A of the Code. This Agreement, and all terms and conditions used herein, shall be interpreted and construed consistent with that intent. However, the Company does not warrant all such payments will be exempt from, or
paid in compliance with, Section 409A. The Optionee bears the entire risk of any adverse federal, state or local tax consequences and penalty taxes which may result from payments made on a basis contrary to the provisions of
Section 409A or comparable provisions of any applicable state or local income tax laws. 
 10. Certain Remedies. 

(a) If at any time prior to the later of (y) the two (2) year period after termination of the Optionee’s employment with the
Company and its Affiliates, and (z) the period that includes the date (after a termination of Optionee’s employment with the Company and its Affiliates) on which all of the Option Shares granted hereunder and capable of becoming vested
Option Shares so become vested Option Shares (the last day of such later period being the “Covenant Termination Date”), any of the following occur: 

(i) the Optionee unreasonably refuses to comply with lawful requests for cooperation made by the Company, its board of directors, or its
Affiliates; 
 (ii) the Optionee accepts employment or a consulting or advisory engagement with (A) any Competitive Enterprise (as
defined in Section 10(c)) of the Company or its Affiliates, or (B) any Significant Retailer (as defined in Section 10(d)), or the Optionee otherwise engages in competition with the Company or its Affiliates; 

(iii) the Optionee acts against the interests of the Company and its Affiliates, including recruiting or employing, or encouraging or
assisting the Optionee’s new employer to recruit or employ an employee of the Company or any Affiliate without the Company’s written consent; 

(iv) the Optionee fails to protect and safeguard while in his/her possession or control, or surrender to the Company upon termination of the
Optionee’s employment with the Company or any Affiliate or such earlier time or times as the Company or its board of directors or any Affiliate may specify, all documents, records, tapes, disks and other media of every kind and description


  
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relating to the business, present or otherwise, of the Company and its Affiliates and any copies, in whole or in part thereof, whether or not prepared by the Optionee; 

(v) the Optionee solicits or encourages any person or enterprise with which the Optionee has had business-related contact, who has been a
customer of the Company or any of its Affiliates, to terminate its relationship with any of them; 
 (vi) the Optionee takes any action or
makes any statement, written or oral, that disparages the business, products, services or management of Company or its Affiliates, or any of their respective directors, officers, agents, or employees, or the Optionee takes any action that is
intended to, or that does in fact, damage the business or reputation of the Company or its Affiliates, or the personal or business reputations of any of their respective directors, officers, agents, or employees, or that interferes with, impairs or
disrupts the normal operations of the Company or its Affiliates; or 
 (vii) the Optionee breaches any confidentiality obligations the
Optionee has to the Company or an Affiliate, the Optionee fails to comply with the policies and procedures of the Company or its Affiliates for protecting confidential information, the Optionee uses confidential information of the Company or its
Affiliates for his/her own benefit or gain, or the Optionee discloses or otherwise misuses confidential information or materials of the Company or its Affiliates (except as required by applicable law); then 

(1) this Option shall terminate and be cancelled effective as of the date on which the Optionee entered into such activity,
unless terminated or cancelled sooner by operation of another term or condition of this Agreement or the Plan; 
 (2) any
stock acquired and held by the Optionee pursuant to the exercise of this Option during the Applicable Period (as defined in Section 10(b) below) may be repurchased by the Company at a purchase price equal to the Exercise Price per share; and

 (3) any gain realized by the Optionee from the sale of stock acquired through the exercise of this Option during the
Applicable Period shall be paid by the Optionee to the Company. 
 (b) The term “Applicable Period” shall mean the
period commencing on the later of the date of this Agreement or the date which is one (1) year prior to the Optionee’s termination of employment with the Company or any Affiliate and ending on the Covenant Termination Date. 

(c) The term “Competitive Enterprise” shall mean a business enterprise that engages in, or owns or controls a significant
interest in, any entity that engages in, the manufacture, sale or distribution of mattresses or pillows or other bedding products or other products competitive with the Company’s products. Competitive Enterprise shall include, but not be
limited to, the entities set forth on Appendix A hereto, which may be amended by the Company from time to time upon notice to the Optionee. At any time the Optionee may request in writing that the Company make a determination whether a
particular enterprise is a Competitive Enterprise. 

  
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Such determination will be made within fourteen (14) days after the receipt of sufficient information from the Optionee about the enterprise, and the determination will be valid for a period
of ninety (90) days from the date of determination. 
 (d) The term “Significant Retailer” means those retailers
identified in Appendix A under the heading “RETAILERS.” The Optionee acknowledges that the Significant Retailers may now or in the future compete directly or indirectly with the Company, and that, whether or not a Significant Retailer
competes directly with the Company, the Optionee because of his knowledge of the industry and his knowledge of confidential information about the Company’s commercial relationships with many large retailers, including one or more of the
Significant Retailers, could damage the Company’s competitive position and business if he worked with a Significant Retailer in any of the capacities described above. 

11. Right of Set Off. By executing this Agreement, the Optionee consents to a deduction from any amounts the Company or any Affiliate
owes the Optionee from time to time, to the extent of the amounts the Optionee owes the Company under Section 10 above, provided that this set-off right may not be applied against wages, salary or other amounts payable to the Optionee to the
extent that the exercise of such set-off right would violate any applicable law. If the Company does not recover by means of set-off the full amount the Optionee owes the Company, calculated as set forth above, the Optionee agrees to pay immediately
the unpaid balance to the Company upon the Company’s demand. 
 12. Nature of Remedies. 

(a) The remedies set forth in Sections 10 and 11 above are in addition to any remedies available to the Company and its Affiliates in any
non-competition, employment, confidentiality or other agreement, and all such rights are cumulative. The exercise of any rights hereunder or under any such other agreement shall not constitute an election of remedies. 

(b) The Company shall be entitled to place a legend on any certificate evidencing any stock acquired upon exercise of this Option referring to
the repurchase right set forth in Section 10(a) above. The Company shall also be entitled to issue stop transfer instructions to the Company’s stock transfer agent in the event the Company believes that any event referred to in
Section 10(a) has occurred or is reasonably likely to occur. 
 13. No Right to Employment. This Agreement does not give the
Optionee any right to continue to be employed by the Company or any of its Affiliates, or limit, in any way, the right of the Company or any of its Affiliates to terminate the Optionee’s employment, at any time, for any reason not specifically
prohibited by law. 
 14. Clawback Policy. The Optionee acknowledges receipt of a copy of the Company’s Clawback Policy,
and acknowledges and agrees that any Option Shares issued under this Agreement shall be subject to the Clawback Policy or any amended version thereof, and any other clawback policy approved by the Company’s Board of Directors. 

  
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 In Witness Whereof, the parties have executed this Stock Option Agreement as of the date first
above written. 
  

							
	TEMPUR SEALY INTERNATIONAL, INC.	 		 	OPTIONEE
				
	By:	 	 /s/ Frank Doyle
	 		 	 /s/ Scott Thompson

	Name:	 	Frank Doyle	 		 	Scott Thompson
	Title:	 	Chairman of the Board of Directors	 		 	Optionee’s Address: 2232 E 30 Pl
				
		 		 		 	   Tulsa, OK 74114


 [Signature Page to Stock Option Agreement] 







 Appendix A 

Competitive Enterprises of the Company and its Affiliates 
  

	
	Ace
	AH Beard
	Auping
	Ashley Sleep
	Boyd
	Carpe Diem
	Carpenter
	Carolina Mattress
	Cauval Group
	Chaide & Chaide
	Classic Sleep Products
	Comforpedic
	Comfort Solutions
	COFEL group
	De Rucci
	Diamona
	Doremo Octaspring
	Dorelan
	Dunlopillo
	Duxiana
	Eastborne
	Eminflex
	Englander
	Flex Group of Companies
	Foamex
	France Bed
	Future Foam
	Harrisons
	Hastens
	Hilding Anders Group
	Hypnos
	IBC
	KayMed
	King Koil
	Kingsdown
	Lady Americana
	Land and Sky
	Leggett & Platt
	Lo Monaco
	Magniflex
	Metzler
	Myers


  
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	Optimo
	Ortobom
	Natura
	Natures Rest
	Park Place
	Permaflex
	Pikolin Group
	Recticel Group
	Relyon
	Restonic
	Rosen
	Rowe
	Sapsa Bedding
	Select Comfort
	Serta and any direct or indirect parent company
	Silentnight
	 Simmons Company/Beautyrest and any direct or

indirect parent company

	Sleepmaker
	Spring Air
	Sterling
	Stobel
	Swiss Comfort
	Swiss Sense
	Therapedic

 RETAILERS 
  

	
	Ashley
	Innovative Mattress Solutions
	Mattress Firm
	Sleepy’s
	Wayfair


  
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