Document:

Summary Sheet of Executive Cash Compensation & Award Formula

 EXHIBIT 10.9 
  
 Summary Sheet of Executive Cash Compensation 
 and Award Formula under the 2004 Key Officers Incentive Plan 
  
 The following table sets forth the current base salaries provided to the Company’s CEO and four most highly compensated executive officers. Salary
increases are determined annually in March. 
  

			
	 Executive Officer

	  	Current Salary

	 Felix E. Wright
	  	842,520
	 David S. Haffner
	  	716,140
	 Karl G. Glassman
	  	572,915
	 Jack D. Crusa
	  	260,000
	 Joseph D. Downes, Jr.
	  	235,000

  
 Executive officers are
also eligible to receive a bonus each year under the Company’s 2004 Key Officers Incentive Plan (filed as Exhibit 10.13). The target percentages under this plan for the Company’s CEO and four most highly compensated executive officers are
as shown in the following table. 
  

			
	 Executive Officer

	  	Target Percentage

	 Felix E. Wright
	  	70%
	 David S. Haffner
	  	60%
	 Karl G. Glassman
	  	50%
	 Jack D. Crusa
	  	44%
	 Joseph D. Downes, Jr.
	  	44%

  
 AWARD FORMULA FOR
2006 
  
 LEGGETT & PLATT, INCORPORATED

 2004 KEY OFFICERS INCENTIVE PLAN 
  
 The 2004 Key Officers Incentive Plan (“Plan”) provides cash awards to participants based on the Company’s operating results for the prior year.
Awards are calculated based on Return on Net Assets, using either the Corporate Formula or the Profit Center Formula, depending on the type of participant. 
  
 Return on Net Assets (“RONA”), as defined by the Plan, is Leggett’s return for the year on its net assets. Certain adjustments are made to Earnings
Before Interest and Taxes (EBIT) and net asset amounts reported in the Company’s Consolidated Financial Statements to determine Plan RONA. “Return” is equal to EBIT with addbacks for Management Incentive Bonus and Additional Stock
Match. “Net Assets” are total assets with the following adjustments: (i) deduction of cash and current liabilities, (ii) deduction or addback of accumulated other comprehensive income (deduction if positive, addback
if negative) reported in shareholder’s equity section of balance sheet, and (iii) quarterly averaging of all calculations. 
  
 Under both formulas, a participant’s “basic potential award” is calculated by multiplying the participant’s target percentage times his annual base
salary as of the end of the calendar year. For example, if the participant’s target percentage is 50% and his annual base salary is $300,000, his basic potential award would be $150,000 (50% x $300,000). 
  
 Award Formula for Corporate Participants 
  
 Corporate awards made under the Plan are based on the Company’s overall financial
performance during the previous year. The basic potential award for corporate participants has two components: 
  

			
	 Corporate portion
	  	90% of total award
	 Discretionary portion
	  	10% of total award

  

 1 

 When the Company achieves at least 8% RONA in a calendar year, the corporate payout will begin at 5% and will follow the
schedule below. No awards are payable for a year when RONA falls below 8%. The total incentive payout will be limited to 4% of EBIT. 
  
 Using the schedule below, if the Company achieved a 14% RONA, the resulting corporate payout would be 65%. Using the example of a participant with a $150,000 basic
potential award, the corporate portion of his or her award would be $87,750 ($150,000 x 90% x 65%). The discretionary portion of the award would be $9,750 ($150,000 x 10% x 65%). Thus, the total award for the Corporate Participant in this example
would be $97,500 ($87,750 + $9,750). 
  
 CORPORATE PARTICIPANT
PAYOUT SCHEDULE 
  

							
	 RONA

	 	 Payout %

	 	 RONA

	 	 Payout %

	 8%
	 	5%	 	15%	 	75%
	 9%
	 	15%	 	16%	 	85%
	 10%
	 	25%	 	17%	 	100%
	 11%
	 	35%	 	18%	 	115%
	 12%
	 	45%	 	19%	 	130%
	 13%
	 	55%	 	20%	 	145%
	 14%
	 	65%	 	21%	 	165%

  
 The Compensation Committee has
established a different payout schedule for the Company’s Executive Team, consisting of the top three corporate officers. Under the Executive Team payout schedule below, no bonus is payable if RONA is below 11%. For returns between 11% and 17%,
the payout schedule mirrors that for other Corporate Participants. For returns above 17%, however, the corporate payout is higher. 
  
 Using the schedule below, if the Company achieved an 18% RONA, the resulting corporate payout for the Executive Team would be 130% (compared to 115% for other Corporate
Participants). For an Executive Team participant with a $350,000 basic potential award, the corporate portion of his or her award would be $409,500 ($350,000 x 90% x 130%). The discretionary portion of the award would be $45,500 ($350,000 x 10% x
130%). Thus, the total award for the Executive Team Corporate Participant in this example would be $455,000 ($409,500 + 45,500). 
  
 EXECUTIVE TEAM PAYOUT SCHEDULE 
  

							
	 
	 RONA

	 	 Payout %

	 	 RONA

	 	 Payout %

	 8%
	 	0%	 	15%	 	75%
	 9%
	 	0%	 	16%	 	85%
	 10%
	 	0%	 	17%	 	100%
	 11%
	 	35%	 	18%	 	130%
	 12%
	 	45%	 	19%	 	160%
	 13%
	 	55%	 	20%	 	190%
	 14%
	 	65%	 	21%	 	220%

  

 2 

 Award Formula for Profit Center Participants 
  
 Profit Center awards are based on the budget achievement of a particular group of operating locations. The basic potential award for profit
center participants has two components: 
  

			
	 Profit Center portion
	  	75% of total award
	 Corporate and Discretionary portion
	  	25% of total award

  
 Each profit center has budgeted
operating income for the year. The profit center portion of the award is determined by the profit center’s achievement of that budget. The table below is used to determine the payout. The highlighted part of this table, for example, shows that
participants in a profit center that achieves 90% of budget would receive 80% of the profit center portion of their award. Accordingly, for a participant with a $150,000 basic potential award, the profit center portion of his or her award would be
$90,000 ($150,000 x 75% x 80%). The maximum Corporate and Discretionary portion, assuming a 65% corporate payout, would be $24,375 ($150,000 x 25% x 65%). Thus, the total award for this Profit Center Participant would be $114,375 ($90,000 +
$24,375). 
  
 PROFIT CENTER TABLE 
  

							
	 Budget %
 Achieved

	 	 Pays
 This %

	 	 Budget %
 Achieved

	 	 Pays
 This %

	 <62.5%
	 	0%	 	81%	 	62%
	 62.5%
	 	25%	 	82%	 	64%
	 63%
	 	26%	 	83%	 	66%
	 64%
	 	28%	 	84%	 	68%
	 65%
	 	30%	 	85%	 	70%
	 66%
	 	32%	 	86%	 	72%
	 67%
	 	34%	 	87%	 	74%
	 68%
	 	36%	 	88%	 	76%
	 69%
	 	38%	 	89%	 	78%
	 70%
	 	40%	 	90%	 	80%
	 71%
	 	42%	 	91%	 	82%
	 72%
	 	44%	 	92%	 	84%
	 73%
	 	46%	 	93%	 	86%
	 74%
	 	48%	 	94%	 	88%
	 75%
	 	50%	 	95%	 	90%
	 76%
	 	52%	 	96%	 	92%
	 77%
	 	54%	 	97%	 	94%
	 78%
	 	56%	 	98%	 	96%
	 79%
	 	58%	 	99%	 	98%
	 80%
	 	60%	 	3100%	 	100%

  

 3Company's 2004 Key Officers Incentive Plan, amended 1/1/06

 EXHIBIT 10.13 
  
 LEGGETT & PLATT, INCORPORATED 
 2004 KEY OFFICERS INCENTIVE PLAN 
 Amended and restated 
 Effective January 1, 2006 
  
 SECTION 1. ESTABLISHMENT, DEFINITIONS, AND ADMINISTRATION 
  

	1.1	Establishment of the Plan. Leggett & Platt, Incorporated hereby establishes the 2004 Key Officers Incentive Plan (the “Plan”). Subject to the
approval of Leggett’s shareholders at the 2004 annual meeting of shareholders, the Plan shall become effective as of January 1, 2004. If the Plan is not so approved, no Awards will be paid. Awards are intended to qualify as “other
performance-based compensation” under Section 162(m) of the Code and, therefore, the Plan shall be construed, interpreted, and administered in accordance with such intention. 

  

	1.2	Purpose of the Plan. The purpose of the Plan is to attract, motivate, and retain the services of participants in the Plan (“Participants”) who make
significant contributions to Leggett’s success by allowing them to share in that success. 

  

	1.3	Definitions. The following terms, when used in the Plan, shall have the following meanings: 

  

	 	(a)	“Award” means the bonus, if any, to which a Participant is entitled under the Plan based on the attainment of a Performance Objective. 

  

	 	(b)	“Code” means the Internal Revenue Code of 1986, as amended. Any reference to the Code includes regulations promulgated pursuant to the Code.

  

	 	(c)	“Corporate Participant” means a Participant whose Award is determined based on the performance of Leggett. 

  

	 	(d)	“EBIT” means Leggett’s earnings for a Year before deducting interest and taxes and after adjustments for other items approved by the Committee.

  

	 	(e)	“Leggett” means Leggett & Platt, Incorporated or any successor thereto and also includes the subsidiaries and affiliates of Leggett & Platt,
Incorporated. 

  

	 	(f)	“Profit Center” means a separate operating unit or branch of Leggett for which Leggett budgets an operating income for a Year. 

  

	 	(g)	“Profit Center Participant” means a Participant whose Award is determined based on the performance of one or more Profit Centers and the performance of Leggett.

  

	 	(h)	“RONA” means Leggett’s EBIT return for the year on its net assets, as adjusted for items approved by the Committee. 

  

	 	(j)	“Year” means the calendar year. The determination of whether or not Performance Objectives are achieved and the amount, if any, of a potential Award to which a
Participant shall be entitled shall be determined each Year. 

  

	1.4	Administration. The Plan shall be administered by the Compensation Committee of Leggett’s Board of Directors (the “Board”), or such other committee as
may be appointed by the Board (the “Committee”). The Committee shall be comprised of two or more “outside directors” of the Board (as defined in Section 162(m) of the Code). The Committee shall have full power
and authority to administer and interpret the Plan and to establish rules and procedures for its administration. The Committee has sole responsibility for selecting Participants, establishing Performance Objectives (defined below) and Award
formulas, and determining Awards. 

  

 1 

 SECTION 2. ELIGIBILITY, PERFORMANCE OBJECTIVES AND AWARDS 
  

	2.1	Eligibility and Participation. Eligibility for participation in the Plan shall be limited to key employees of Leggett as determined by the Committee. The Committee shall
determine who is a Corporate Participant and who is a Profit Center Participant. Key employees may participate as either Corporate Participants or Profit Center Participants, but not both. 

  

	2.2	Performance Objectives. Awards are paid based on the achievement of performance objectives (“Performance Objectives”). Unless and until otherwise so
determined by the Committee, the Performance Objectives are as follows: 

  

	 	(a)	For Corporate Participants, an Award is payable when Leggett has achieved RONA of at least 8%. The aggregate amount of Awards under the Plan and bonuses paid under Leggett’s
Key Management Incentive Compensation Plan may not exceed 4% of EBIT; provided however, that Awards and bonuses related to Profit Center performance are not subject to the 4% of EBIT limit. 

  

	 	(b)	For Profit Center Participants, 75% of the Award is based on the achievement of Profit Center objectives and 25% of the Award is based on the achievement of the RONA targets
described in 2.2(a) above. The Profit Center portion of the Award is payable when the Profit Center has operating income of at least 62.5% of budgeted operating income. The maximum Profit Center portion is payable when the Profit Center has
operating income equal to 100% of budgeted operating income. 

  

	2.3	Potential Award. The amount of each Participant’s Award is determined by applying the Award formula to a percentage of the Participant’s annual salary at the end of
the Year (the “Target Percentage”). The Award formula and each Participant’s Target Percentage shall be determined by the Committee no later than 90 days after the beginning of each Year. 

  

	2.4	Other Performance Objectives and Awards. The Committee may select other and/or additional Performance Objectives than those set forth in Section 2.2. These Performance
Objectives may be different for different Participants and shall be based on one or more of the following measures of Leggett’s (or, if applicable, a Profit Center’s) performance: revenues, operating income, return on equity, return on
assets, cash flow, market price of Leggett’s stock, earnings, earnings per share of Leggett’s stock, and/or one or more of the Performance Objectives set forth in Section 2.2. 

  

	2.5	Determination of Final Awards. As soon as practical after the end of each Year, the determination of Awards for Participants will be made and certified in writing to the
Board by the Committee solely on the basis of the attainment of Performance Objectives. The Committee shall have discretion to reduce by up to 10%, but shall not increase, the Award to which a Participant would be entitled based on Performance
Objectives. No such reduction shall increase the Award of any other Participant who is subject to Section 162(m). 

  

	2.6	Maximum Award. Notwithstanding any other provision of the Plan, a Participant’s Award for a Year may not exceed 0.3% of EBIT for that Year. 

  

	2.7	Payment of Awards. A Participant’s Award will be paid in the manner and at the time or times established by the Committee but in no event later than March 15th of
the year the award becomes payable. Payment of an Award will be made in cash unless deferred under the Company’s Deferred Compensation Program. Unless otherwise determined by the Committee, a Participant must be employed by Leggett on the last
working day of the Year to be eligible for Award payments. 

  

 2 

 SECTION 3. AMENDMENT AND TERMINATION 
  
 The Committee may amend or terminate the Plan at any time, provided that no amendment shall be made without shareholder approval if such
approval is required under applicable law or required for Awards to qualify as “other performance-based compensation” under Section 162(m). Except as otherwise provided in this Plan, no amendment or termination of the Plan may
materially and adversely affect any outstanding Award without the Participant’s consent. 
  

 3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00098-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00098-of-00352.parquet"}]]