2011 Form of Performance Stock Unit Award Agreement



 Exhibit 10.1 
 2011 FORM OF PERFORMANCE STOCK UNIT 
 AWARD AGREEMENT 

[2011 – 2013] 

[Name] 
 Congratulations! On January
    , [2011], Leggett & Platt, Incorporated (the “Company”) granted you a Performance Stock Unit Award (the “Award”) under the Company’s Flexible Stock Plan (the
“Stock Plan”). The Award is granted subject to the enclosed Terms and Conditions – Performance Stock Unit Award ([2011 – 2013]) (the “Terms and Conditions”). 

You have been granted a base award of [            ] Performance Stock Units. A
percentage of your base award will vest on December 31, [2013] and will be paid out in a combination of cash and shares of the Company’s common stock, as described in the Terms and Conditions, by March 15, [2014]. 

As described in the enclosed Terms and Conditions, the payout you ultimately receive from this Award depends on how the Company’s Total Shareholder
Return ranks within our Peer Group during the [2011 – 2013] Performance Period. A percentage of your base award will vest (ranging from 0% to 175%), according to the schedule below. 

 

			
	 Percentile

Rank of

L&P TSR
	  	 Payout %

of Your

Base Award

	 25%
	  	25%
	 30%
	  	35%
	 35%
	  	45%
	 40%
	  	55%
	 45%
	  	65%
	 50%
	  	75%
	 55%
	  	95%
	 60%
	  	115%
	 65%
	  	135%
	 70%
	  	155%
	 75%
	  	175%

 By signing below, you confirm that
you understand and agree that this Award of Performance Stock Units is granted subject to the Terms and Conditions and the Stock Plan, and that the Terms and Conditions are included in this Agreement by reference. 

A Summary of the Flexible Stock Plan and the Company’s most recent Annual Report to Shareholders are available upon request to the
Corporate Human Resources Department. 
 Accepted and Agreed: 
 
                                         
                            
 Social Security
No.                                        
 
 This award letter and the enclosed materials are part of a prospectus covering securities that have been registered

 under the Securities Act of 1933. Neither the Securities and Exchange Commission nor any state securities 

commission has approved or disapproved these securities or determined if this prospectus is truthful or complete. 

  
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 2011 FORM OF PERFORMANCE STOCK UNIT 

TERMS AND CONDITIONS 
 [2011 – 2013] 
 1. Performance Period and Payout Percentage. Your payout
under this Performance Stock Unit Award (the “Award”) will depend on (i) the base award shown on your Award Agreement and (ii) the Company’s performance during the three-year period beginning
January 1, [2011] and ending December 31, [2013] (the “Performance Period”). The Company’s Total Shareholder Return (“TSR”) during the Performance Period will be compared to the TSR of similar
companies (the “Peer Group”). The Peer Group includes all the companies in the Industrial, Consumer Discretionary and Materials sectors of the S&P 500 and the S&P 400. TSR is calculated as follows and assumes dividends are
reinvested on the ex-dividend date: 
 Stock Price at End of Period – Stock Price at Beginning of Period + Reinvested
Dividends 
 Stock Price at Beginning of Period 
 Depending on how the Company’s TSR ranks within the Peer Group at the end of the Performance Period, you will earn from 0% to 175% of your base award, rounded to the nearest whole share (the
“Payout Percentage”). 
 If the Company’s TSR during the Performance Period is equal to or greater
than that of 75% of the Peer Group, your Award will pay out at 175% of the base award. If the Company’s TSR falls at the 50th percentile of the Peer Group, you will receive 75% of the base award. For performance at the 25th percentile, you will receive 25% of your base award. No payout will
be earned under your Award if the Company does not meet the 25th percentile threshold. Additional payouts are shown in the chart below. Payouts will be interpolated for TSR falling between the levels shown. 

 

			
	 Percentile

Rank of

L&P TSR
	  	 Payout %

of Your

Base Award

	 25%
	  	25%
	 30%
	  	35%
	 35%
	  	45%
	 40%
	  	55%
	 45%
	  	65%
	 50%
	  	75%
	 55%
	  	95%
	 60%
	  	115%
	 65%
	  	135%
	 70%
	  	155%
	 75%
	  	175%

 2. Vesting of Award and Form of
Payout. With the exception of early vesting for circumstances described in Sections 3 and 4, this Award will vest on [December 31, 2013] (the “Vesting Date”), as described in Section 1. Thirty-five percent (35%) of
your vested Award will be paid out in cash and the Company intends to pay out the remaining sixty-five percent (65%) in shares of the Company’s common stock, although the Company reserves the right to pay up to one hundred percent
(100%) of the vested Award in cash. The portion of the Award that is paid in cash is referred to as the “Cash Portion,” and the portion of the Award that is paid in shares of the


  
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Company’s common stock is referred to as the “Stock Portion.” Your vested Award will be paid out as soon as reasonably practicable following the end of the Performance
Period but in no event later than [March 15, 2014] (the “Payout Date”). On the Payout Date, the Company will issue to you (i) one share of the Company’s common stock for each vested Performance Stock Unit comprising the
Stock Portion of your Award, subject to reduction for tax withholding, and (ii) a check with a gross value equal to the closing market price of the Company’s common stock on the last business day of the Performance Period (or the date of
the Change of Control if Section 4 applies) times the number of vested Performance Stock Units comprising the Cash Portion of your Award, subject to reduction for tax withholding. As described in Section 7, the Company will withhold from
both the Stock and Cash Portions of your payout any amount required to satisfy applicable tax withholding requirements. 
 3. Termination
of Employment. 
  

	 	a.	Except as provided in Section 3(b), if your employment is terminated for any reason before the Vesting Date, your right to this Award will terminate immediately
upon such termination of employment. Termination of employment and similar terms when used in this Award refer to a termination employment that constitutes a separation from service within the meaning of Section 409A of the Internal Revenue
Code. 

  

	 	b.	If your termination of employment during the Performance Period is due to Retirement (as defined below), death, or Disability (as defined below), you will receive a pro
rata number of shares following the end of the Performance Period for each full calendar year prior to your termination. 

 “Retirement” means you voluntarily quit (i) on or after age 65, or (ii) on or after age 55 if you have at least 20 years of service with the Company or any company
or division acquired by the Company. 
 “Disability” means the inability to substantially perform your duties
and responsibilities by reason of any accident or illness that can be expected to result in death or to last for a continuous period of not less than one year; provided, however, the Award shall continue to vest for 18 months after Disability
begins. 
  

	 	c.	The employment relationship will be treated as continuing intact while you are on military, sick leave or other bona fide leave of absence if (i) the
Company does not terminate the employment relationship or (ii) your right to re-employment is guaranteed by statute or by contract. 

 4. Change in Control. If, during the Performance Period, a Change in Control of the Company (as defined in the Flexible Stock Plan) occurs and your employment is terminated either
(i) by the Company (for reasons other than Disability or Cause, as defined below) or (ii) by you for Good Reason, then the Company (or its successor) will issue to you 175% of your Base Award, within thirty (30) days following your
termination of employment (subject to delay until the first day of the first month that is more than six months following your separation from service to the extent required in Section 16.7 of the Stock Plan, if you are a specified employee
within the meaning of Section 409A of the Internal Revenue Code). 
  

	 	a.	Termination by Company for “Cause”. Termination for “Cause” under this Agreement shall be limited to the following:


  

	 	i.	Your conviction of any crime involving money or other property of the Company or any of its affiliates (including entering any plea bargain admitting criminal guilt),
or a conviction of any other crime (whether or not involving the Company or any of its affiliates) that constitutes a felony in the jurisdiction involved; or 


  
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	 	ii.	Your willful act or omission involving fraud, misappropriation, or dishonesty that (i) causes material injury to the Company or (ii) results in a material
personal enrichment to you at the expense of the Company; or 

  

	 	iii.	Your continued, repeated, willful failure to substantially perform your duties; provided, however, that no discharge shall be deemed for Cause under this subsection
(a) unless you first receive written notice from the Company advising you of specific acts or omissions alleged to constitute a failure to perform your duties, and such failure continues after you have had a reasonable opportunity to correct
the acts or omissions so complained of. 

 A termination shall not be deemed for Cause if, for example, the
termination results from the Company’s determination that your position is redundant or unnecessary or that your performance is unsatisfactory. 
  

	 	b.	Termination by Executive for Good Reason. You may terminate your employment for “Good Reason” by giving notice of termination to the
Company during the Performance Period following (i) any action or omission by the Company described in this Section or (ii) receipt of notice from the Company of the Company’s intention to take any such action or engage in any such
omission. 

 The actions or omissions which may lead to a termination of employment for Good Reason are as follows:

  

	 	i.	A reduction by the Company in your base salary as in effect immediately prior to the Change in Control; or 


 

	 	ii.	A change in your reporting responsibilities, titles or offices as in effect immediately prior to a Change in Control that results in a material diminution within the
Company of title, status, authority or responsibility; or 

  

	 	iii.	A failure by the Company, without providing substantially similar economic benefits, to (i) continue any cash bonus or other incentive plans substantially in the
forms in effect immediately prior to the Change in Control, or (ii) continue your participation in such plans on at least the same basis as you participated in accordance with the plans immediately prior to the Change in Control; or


  

	 	iv.	A requirement by the Company that you be based or perform your duties anywhere other than at the location immediately prior to the Change in Control, except for
required travel on the Company’s business to an extent substantially consistent with your business travel obligations immediately prior to the Change in Control; or 


  
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	 	v.	A failure by the Company to continue in effect any benefit or other compensation plan (e.g., stock ownership plan, stock purchase plan, stock option plan, life
insurance plan, health and accident plan or disability plan) in which you are participating at the time of a Change in Control (or plans providing you with substantially similar economic benefits), or the taking of any action which would adversely
affect your participation in or materially reduce your benefits under any such plans; or 

  

	 	vi.	A failure by the Company to obtain the assumption agreement to perform this Agreement by any successor as contemplated by Section 11 of this Agreement; or


  

	 	vii.	Any purported termination of your employment for Disability or for Cause that is not carried out pursuant to a notice of termination which satisfies the requirements of
Section 4(c); and for purposes of this Agreement, no such purported termination shall be effective. 

  

	 	c.	Notice of Termination. Any purported termination by the Company of your employment shall be communicated by notice of termination to the other party. A
notice of termination shall set forth, in reasonable detail, the facts and circumstances claimed to provide a basis for termination of employment under the Section so indicated. 


 

	 	d.	Date of Termination. The date your employment is terminated under Section 4 of this Agreement is called the “Date of Termination”.
In cases of Disability, the Date of Termination shall be 30 days after notice of termination is given (provided that you shall not have returned to the performance of your duties on a full-time basis during such 30-day period). If your employment is
terminated for Cause, the Date of Termination shall be the date specified in the notice of termination. If your employment is terminated for Good Reason, the Date of Termination shall be the date set out in the notice of termination.


 Any dispute by a party hereto regarding a notice of termination delivered to such party must be conveyed to the
other party within 30 days after the notice of termination is given. If the particulars of the dispute are not conveyed within the 30-day period, then the disputing party’s claims regarding the termination shall be forever deemed waived.

 5. Transferability. The Performance Stock Units may not be transferred, assigned, pledged or otherwise encumbered until the
underlying shares have been issued or settled in cash. 
 6. No Rights as Shareholder. You will not have the rights of a
shareholder with respect to the Stock Portion of the Performance Stock Units until the underlying shares have been issued. You will not have the right to vote the shares or receive any dividends that may be paid on the underlying shares prior to
issuance. 
 7. Withholding. You will recognize taxable income equal to the fair market value of the shares underlying the Stock
Portion of the Award plus the dollar value of the Cash Portion of the 

  
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Award on the Payout Date. This amount is subject to ordinary income tax and payroll tax. The Company will withhold (at the Company’s required withholding rate) any amount required to satisfy
applicable tax laws (i) in cash from the Cash Portion of the payout and (ii) in shares from the Stock Portion of the payout. The Company, at its discretion, may allow you to pay the taxes due on the Stock Portion of the payout in cash
instead of shares if you make suitable arrangements with the Company prior to the Payout Date. 
 The income and tax withholding generated by
your payout will be reported on your W-2. If your personal income tax rate is higher than the Company’s minimum required withholding rate, you will owe additional tax on the issuance. After payment of the ordinary income tax, the shares you
receive for the Stock Portion of your payout will have a tax basis equal to the closing price of L&P stock on the Payout Date. 
 8.
Noncompetition. For two years after the Payout Date of this Award, you will not directly or indirectly (i) engage in any Competitive Activity, (ii) solicit orders from or seek or propose to do
business with any customer of the Company or its subsidiaries or affiliates (collectively, the “Companies”) relating to any Competitive Activity, or (iii) influence or attempt to influence any employee, representative or
advisor of the Companies to terminate his or her employment or relationship with the Companies. “Competitive Activity” means any manufacture, sale, distribution, engineering, design, promotion or other activity that competes with
any business of the Companies in which you were involved as an employee, consultant or agent. 
 If you violate the preceding paragraph, then
you will pay to the Company any Award Gain you realized from this Award. “Award Gain” for the Cash Portion of your Award is equal to (i) the cash paid to you on the Payout Date of this Award (including the tax
withholding), minus (ii) any non-refundable taxes paid by you as a result of the distribution. “Award Gain” for the Stock Portion of your Award is equal to (i) the number of shares distributed to you
on the Payout Date of this Award times the fair market value of L&P stock on the Payout Date (including the tax withholding), minus (ii) any non-refundable taxes paid by you as a result of the distribution. 

If any restriction in this Section is deemed unenforceable, then you and the Company contemplate that the appropriate court will reduce the scope or
other provisions and enforce the restrictions set out in this section in their reduced form. The covenants in this Section are in addition to any similar covenants under any other agreement between the Company and you. 

9. Award Not Benefit Eligible. This Award will be considered special incentive compensation and will not be included as earnings, wages,
salary or compensation in any pension, retirement, welfare, life insurance or other employee benefit plan or arrangement of the Company. 
 10.
Plan Controls; Committee. This Award is subject to all terms, provisions and definitions of the Flexible Stock Plan (the “Plan”), which is incorporated by reference. In the event of any conflict, the Plan will control
over this Award. Upon request, a copy of the Plan will be furnished to you. The Plan is administered by a committee of non-employee directors or their designees (the “Committee”). The Committee’s decisions and interpretations
with regard to this Award will be binding and conclusive. 
 11. Assignment. The Company 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 the Company to expressly assume and agree to perform this Agreement in the same manner and to the same extent that the
Company would be required to perform it if no such succession had taken place. Failure of the Company to obtain such agreement prior to the 

  
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effectiveness of any such succession shall be a breach of this Award Agreement. As used in the Award Agreement, “Company” means (i) Leggett & Platt, Incorporated,
its subsidiaries and affiliates, and (ii) any successor to its business and/or assets which executes and delivers the agreement provided for in this Section or which otherwise becomes bound by all the terms and provisions of this Award
Agreement by operation of law. 
 12. Other. In the absence of any specific agreement to the contrary, the grant of this Award to
you will not affect any right of the Company or its subsidiaries to terminate your employment or your right to resign from employment. 
 This
Award is intended to comply with the requirements of Section 162(m) of the Internal Revenue Code for performance-based compensation. 

This Award is entered into and accepted in Carthage, Missouri. The Award will be governed by Missouri law, excluding any conflicts or choice of law
provision that might otherwise refer construction or interpretation of the Award to the substantive law of another jurisdiction. 
 Any action
or proceeding arising from or related to this Award is subject to the exclusive venue and subject matter jurisdiction of the Circuit Court for Jasper County, Missouri or the United States District Court for the Western District of Missouri, and the
parties agree to submit to the jurisdiction of such Courts. The parties also waive the defense of an inconvenient forum and agree not to seek any change of venue from such Courts. 

  
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