Document:

Transition Agreement and Release

 Exhibit 10.1 
 

 
 TRANSITION AGREEMENT AND GENERAL RELEASE 
 Via Federal Express  
                             December 5,
2007             
 Ambrose Schwallie 
 412 Spalding Lake Circle 
 Aiken, SC 29803 
 Dear Ambrose: 
 You notified us on October 31, 2007 of your intention to
voluntarily resign your employment with Distributed Energy Systems Corp. (the “Company”) on October 31, 2007. In connection with your transition, you are eligible to receive the transition benefits described in the “Description
of Transition Benefits” attached to this letter agreement as Attachment A, if you sign and return this letter agreement to Human Resources in the enclosed envelope by the close of business on December 27, 2007. By timely signing,
returning, and not revoking this letter agreement, you will be entering into a binding agreement with the Company and will be agreeing to the terms and conditions set forth in the numbered paragraphs below, including the release of claims set forth
in paragraph 3. Therefore, you are advised to consult with an attorney before signing this letter agreement. You will have at least twenty-one (21) days to review this letter agreement and decide whether you wish to sign it in exchange for the
transition benefits offered. You may, but do not have to, sign this letter agreement sooner if you wish. If you sign this letter agreement, you may change your mind and revoke your agreement during the seven (7) day period after you have signed
it by delivering a written notice of revocation to Human Resources within such seven (7) day period. If you do not so revoke, this letter agreement will become a binding agreement between the Company and you upon the expiration of the seven
(7) day revocation period. 
 If you choose not to sign and return this letter agreement by December 27, 2007, you will not receive any transition
benefits from the Company. 
 Regardless of signing this letter agreement, the following applies: 
  

	 	a)	Pay: You received payment on November 9, 2007 for all wages earned through the resignation date. 

  

	 	b)	Paid Time Off: You received payment on November 9, 2007 for any and all unused vacation time accrued through the resignation date. 

  

	 	c)	Disability Insurance: Your coverage under the Company’s short-term and long-term disability policies terminated on the resignation date. 

	 	d)	Stock Options: Your stock options stopped vesting on the resignation date. You will have ninety (90) days to exercise your vested options following the
resignation date. You will receive a final option closing statement in the mail within two (2) weeks. 

  

	 	e)	Other Benefits: Eligibility to participate in any other benefits, including but not limited to: Travel Insurance, Education Assistance, Section 529 Plan, Long
Term Care Insurance, and Auto/Home Insurance, ended on the resignation date. If you were participating in or have a Section 529 Plan, Long Term Care Insurance Plan, and/or Auto/Home Insurance plan as of the resignation date, you can continue
your coverage in the plan to the extent provided by the provisions of each plan. 

  

	 	f)	Transition Support: The Company will provide you with transition support services from Longview Associates, 800-666-5EAP (5327) for a period of three
(3) months following the resignation date. 

 The following numbered paragraphs set forth the terms and conditions that will apply if you
timely sign and return this letter agreement and do not revoke it within the seven (7) day period: 
  

	1.	Resignation Date - Your effective date of resignation from the Company was October 31, 2007 (the “resignation date”). 

  

	2.	Description of Transition Benefits - The transition benefits to be paid to you if you timely sign and return, and do not revoke, this letter agreement are described in
the “Description of Transition Benefits” attached as Attachment A (the “transition benefits”). 

  

	3.	 Release - In consideration of the payment of the transition benefits, which you acknowledge you would not otherwise be entitled to receive, you hereby
fully, forever, irrevocably and unconditionally release, remise and discharge the Company and its officers, directors, stockholders, corporate affiliates, subsidiaries, parent companies, agents and employees (each in their individual and corporate
capacities) and employee benefit plans and plan fiduciaries (the “Released Parties”) from any and all claims, charges, complaints, demands, actions, causes of action, suits, rights, debts, sums of money, costs, accounts, reckonings,
covenants, contracts, agreements, promises, doings, omissions, damages, executions, obligations, liabilities, and expenses (including attorneys’ fees and costs), of every kind and nature that you ever had or now have against the Released
Parties including, but not limited to, all claims arising out of your employment with and/or separation from the Company, including, but not limited to, all employment discrimination claims under Title VII of the Civil Rights Act of 1964, 42 U.S.C.
§ 2000e et seq., the Age Discrimination in Employment Act, 29 U.S.C. § 621 et seq., the Americans With Disabilities Act of 1990, 42 U.S.C. § 12101 et seq., the Family and
Medical Leave Act, 29 U.S.C. § 2601 et seq., the Rehabilitation Act of 1973, 29 U.S.C. § 701 et seq., the Connecticut Human Rights and Opportunities Act, Conn. Gen. Stat. § 46a-51
et seq., the Connecticut Equal Pay Law, Conn. Gen. Stat. § 31-75 et seq., the Connecticut Family and Medical Leave Law, Conn. Gen. Stat. § 31-51kk et seq. and Conn. Gen.
Stat. § 31-51m (Connecticut whistleblower protection law), all as amended, and all claims arising out of the Fair Credit Reporting Act, 15 U.S.C. § 1681 et seq. and the Employee Retirement Income Security Act
of 1974 (“ERISA”), 29 U.S.C. § 1001 et seq., all as amended, and all common law claims including, but not limited to, actions in tort, defamation and breach of contract, all claims to any non-vested ownership
interest in the Company, contractual or otherwise, 

  

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including, but not limited to, claims to stock or stock options, and any claim or damage arising out of your employment with and/or separation from the
Company (including a claim for retaliation) under any common law theory or any federal, state or local statute or ordinance not expressly referenced above; provided, however, that nothing in this letter agreement prevents you from
filing, cooperating with, or participating in any proceeding before the EEOC or a state fair employment practices agency (except that you acknowledge that you will not be able to recover any monetary benefits in connection with any such claim,
charge or proceeding). 

  

	4.	Non-Disclosure & Non-Competition - You acknowledge and reaffirm your obligation to keep confidential all non-public information concerning the Company that
you acquired during the course of your employment with the Company, your obligations of non-competition and non-solicitation, as referenced here and as may be described more fully in the Assignment of Invention, Nondisclosure and Non-Competition
Agreement (the “Agreement”) you executed at the inception of your employment, and your other obligations regarding Company information contained in any and all other applicable agreements and Company policies, all of which remain in full
force and effect (regardless of whether you sign and return this letter agreement). 

  

	5.	Return of Company Property - You confirm that you have returned to the Company in good working order all keys, files, records (and copies thereof), equipment
(including, but not limited to, computer hardware, software and printers, wireless handheld devices, cellular phones and pagers), Company identification, Company vehicles, Company confidential and proprietary information, and any other Company-owned
property in your possession or control and have left intact all electronic Company documents, including, but not limited to, those that you developed or helped to develop during your employment. You further confirm that you have cancelled all
accounts for your benefit, if any, in the Company’s name, including, but not limited to, credit cards, telephone charge cards, cellular phone and/or pager accounts and computer accounts. 

  

	6.	Business Expenses and Compensation - You acknowledge that you have been reimbursed by the Company for all business expenses incurred in conjunction with the
performance of your employment and that no other reimbursements are owed to you. You further acknowledge that you have received payment in full for all services rendered in conjunction with your employment by the Company and that no other
compensation, including, but not limited to base pay, overtime pay, incentive pay, severance, bonuses, commissions, or equity-based awards, is owed to you, except as otherwise provided herein. 

  

	7.	Cooperation - You agree to cooperate with the Company in the investigation, defense or prosecution of any claims or actions now in existence or that may be brought in
the future against or on behalf of the Company. Your cooperation in connection with such claims or actions shall include, but not be limited to, being available to meet with the Company’s counsel to prepare for discovery or any mediation,
arbitration, trial, administrative hearing or other proceeding or to act as a witness when reasonably requested by the Company at mutually agreeable times and at locations mutually convenient to the Company and you. You also agree to cooperate with
the Company in the transitioning of your work, and will be available to the Company for this purpose or any other purpose reasonably requested by the Company. 

  

	8.	 Non-Disparagement - You understand and agree that you will not make any false, misleading, disparaging or derogatory statements to any media outlet,
industry group, financial institution 

  

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or current or former employee, consultant, client or customer of the Company or to any other person or entity regarding the Company or any of its directors,
officers, employees, agents or representatives; provided, however, that nothing herein shall prevent you from making truthful disclosures to any governmental entity or in any litigation or arbitration. 

  

	9.	Tax Provision - In connection with the severance benefits provided to you pursuant to this letter agreement, the Company shall withhold and remit to the tax
authorities the amounts required under applicable law, and you shall be responsible for all applicable taxes with respect to such severance benefits under applicable law. You acknowledge that you are not relying upon advice or representation of the
Company with respect to the tax treatment of any of the severance benefits set forth in Attachment A. 

  

	10.	Amendment - This letter agreement shall be binding upon the parties and may not be modified in any manner, except by an instrument in writing of concurrent or
subsequent date signed by duly authorized representatives of the parties hereto. This letter agreement is binding upon and shall inure to the benefit of the parties and their respective agents, assigns, heirs, executors, successors and
administrators. 

  

	11.	Waiver of Rights - No delay or omission by the Company in exercising any right under this letter agreement shall operate as a waiver of that or any other right. A
waiver or consent given by the Company on any one occasion shall be effective only in that instance and shall not be construed as a bar to or waiver of any right on any other occasion. 

  

	12.	Validity - Should any provision of this letter agreement be declared or be determined by any court of competent jurisdiction to be illegal or invalid, the validity of
the remaining parts, terms or provisions shall not be affected thereby and said illegal or invalid part, term or provision shall be deemed not to be a part of this letter agreement. 

  

	13.	Confidentiality - You understand and agree that the negotiations that resulted in this letter agreement shall be maintained as confidential by you and your agents and
representatives and shall not be disclosed except to the extent required by federal or state law or as otherwise agreed to in writing by the Company. 

  

	14.	Nature of Agreement - You understand and agree that this letter agreement is a transition agreement and does not constitute an admission of liability or wrongdoing on
the part of the Company. 

  

	15.	Acknowledgments - You acknowledge that you have been given at least twenty-one (21) days to consider this letter agreement, including Attachment A, and that the
Company advised you in writing to consult with an attorney of your own choosing prior to signing this letter agreement. You understand that you may revoke this letter agreement for a period of seven (7) days after you sign this letter
agreement, and that this letter agreement shall not be effective or enforceable until the expiration of this seven (7) day revocation period. You understand and agree that by entering into this letter agreement you are waiving any and all
rights or claims you might have under the Age Discrimination in Employment Act, as amended by the Older Workers Benefit Protection Act, and that you have received consideration beyond that to which you were previously entitled.

  

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	16.	Voluntary Assent - You affirm that no other promises or agreements of any kind have been made to or with you by any person or entity whatsoever to cause you to sign
this letter agreement, and that you fully understand the meaning and intent of this letter agreement. You state and represent that you have had an opportunity to discuss fully and review the terms of this letter agreement with an attorney. You
further state and represent that you have carefully read this letter agreement, including Attachment A, understand the contents herein, freely and voluntarily assent to all of the terms and conditions hereof, and sign your name of your own free act.

  

	17.	Applicable Law - This letter agreement shall be interpreted and construed by the laws of the State of Connecticut, without regard to conflict of laws provisions. You
hereby irrevocably submit to and acknowledge and recognize the jurisdiction of the courts of the State of Connecticut, or if appropriate, a federal court located in the State of Connecticut (which courts, for purposes of this letter agreement, are
the only courts of competent jurisdiction), over any suit, action or other proceeding arising out of, under or in connection with this letter agreement or the subject matter hereof. 

  

	18.	Entire Agreement - This letter agreement, including Attachment A, contains and constitutes the entire understanding and agreement between the parties hereto with
respect to your transition benefits and the settlement of any and all claims against the Company and cancels any and all previous oral and written negotiations, agreements and commitments in connection therewith, except that nothing in this
paragraph, however, shall modify, cancel or supersede your obligations set forth in paragraph 4 herein. 

 If you have any questions about the
matters covered in this letter agreement, please call me at 802-461-2873. 
  

			
	Very truly yours,
		
	By:	 	 /s/ Erika Schramm

		 	Erika Schramm
		 	Human Resources

 I hereby agree to the terms and conditions set forth above and in the attached Description of Transition
Benefits. I have been given at least twenty-one (21) days to consider this letter agreement and Attachment A, and I have chosen to execute this on the date below. I intend that this letter agreement become a binding agreement between the
Company and me if I do not revoke my acceptance within seven (7) days. 
  

					
	 /s/ Ambrose Schwallie
	 		 	Date 12/10/07
	Ambrose Schwallie	 		 	

 To be returned in the enclosed envelope by December 27, 2007. 
  

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 ATTACHMENT A 
 DESCRIPTION OF TRANSITION BENEFITS 
 The Company will pay to you a transition benefit of $100,000, less
all applicable taxes and withholdings, which represents three (3) months of your base salary as of the resignation date. This severance pay will be paid in accordance with the Company’s normal payroll practices, but in no event shall
payments begin earlier than the eighth (8th) day after you execute and return this letter agreement. 
  

 - 6 -Form of Performance Stock Unit Award Agreement

 Exhibit 10.1 
 [Name] 
 [Clock #] 
 FORM OF 
 PERFORMANCE STOCK UNIT 
 AWARD AGREEMENT 
 Congratulations! On [January 2, 2008], Leggett & Platt,
Incorporated (the “Company”) granted you a Performance Stock Unit Award (the “Award”). You have been granted a base award of [1,000] Performance Stock Units, subject to the terms of this Agreement. Each Performance
Stock Unit represents one share of the Company’s common stock. 
 1. Performance Period and Payout Percentage. The number of shares that
will be issued to you pursuant to this Award depends on the Company’s performance during the three-year period beginning [January 1, 2008] and ending [December 31, 2010] (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 payment date: 
 Stock Price at End of Period – Stock Price at Beginning of Period + 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. 
 If the Company’s TSR during the Performance Period is equal to or greater than that of
75% of the Peer Group, you will be issued shares of Leggett & Platt common stock equal to 175% of the base award, or [1,750] shares. If the Company’s TSR falls at the 50th percentile of the Peer Group, you will receive 75% of the base award, or [750] shares. For performance at the 25th
percentile, you will receive 25% of your base award, or [250] shares. No shares will be issued 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 Issuance of Shares. With the exception of early vesting for circumstances
described in Section 3, this Award will vest on [December 31, 2010] (the “Vesting Date”). You will be issued one share of the Company’s common stock for each vested Performance Stock Unit, calculated as described in
Section 1, as soon as reasonably practicable following the end of the Performance Period but in no event later than [March 15, 2011.] 

 3. Separation from Service. 
  

	 	a.	Except as provided in Section 3(b), if you separate from service for any reason before the Vesting Date, your right to this Award will terminate immediately upon such
separation of service. 

  

	 	b.	If your separation from service 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 of service performed. 

 “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. 
  

	 	c.	In determining whether you have separated from service during any leave of absence, 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. Transferability. The Performance Stock Units may not be transferred, assigned, pledged or otherwise made subject to any encumbrance until the related
shares have been issued. 
 5. No Rights as Shareholder. You will not have the rights of a shareholder with respect to 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 Company common stock prior to issuance of the shares. 
 6. Withholding. You will recognize taxable income equal to the fair market value of the shares on the date they are issued to you. This amount is subject
to ordinary income tax and payroll tax. The Company may withhold from the shares issued any amount required to satisfy applicable tax laws (at the Company’s required withholding rate). The Company, at its discretion, may allow you to pay the
taxes in cash if you make suitable arrangements with the Company prior to the issuance date. 
 The income and tax withholding generated by the issuance of
shares to you 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, your shares will
have a tax basis equal to the closing price of L&P stock on the date the shares are issued. 
 7. 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. 

 8. Plan Controls; Committee. This Agreement 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 Agreement. 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. 
 9. Other. In the absence of any specific agreement to the contrary, the grant of the Performance Stock Units 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 Agreement is intended to comply with the
requirements of Section 162(m) of the Internal Revenue Code for performance-based compensation. 
 This Agreement is entered into and accepted in
Carthage, Missouri. The Agreement will be governed by Missouri law, excluding any conflicts or choice of law provision that might otherwise refer construction or interpretation of the Agreement to the substantive law of another jurisdiction.

 Any action or proceeding arising from or related to this Agreement 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. 
 IMPORTANT 
 By signing below, you confirm that you understand and agree that the Performance Stock Units provided in this Award are subject to the terms of this Agreement. 
 The Annual Report to Shareholders is not provided with this Agreement but is available upon request to the Corporate Human Resources Department. 
  

							
	Accepted and Agreed:	 		 	Please return one signed original of this page to:
		 		 		 	 Annette Garner

		 		 		 	 Compensation Manager

	  
	 		 	 Leggett & Platt, Incorporated

	[Name]	 		 		 	 #1 Leggett Road

	Social Security No.	 	  
	 		 	 Carthage, MO 64836

 This award letter is part of a prospectus covering securities that have been registered under the
Securities Act of 1933. Neither the Securities & 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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