Document:

Exhibit 10.1 2018 Award Formula under the 2014 Key Officers Incentive Plan

 Exhibit 10.1 

AWARD FORMULA FOR 2018 

LEGGETT & PLATT, INCORPORATED 

2014 KEY OFFICERS INCENTIVE PLAN 
 The 2014
Key Officers Incentive Plan (the “Plan”) provides cash Awards to Participants based on the Company’s operating results for the prior year. Capitalized terms not defined in this document have the meaning ascribed under the Plan.
There are separate Award Formulas under the Plan for Corporate Participants and Profit Center Participants. 
 Under both formulas, a Participant’s
Award is calculated by reference to the Target Percentage of the Participant’s annual salary at the end of the Year. The Award Formulas and each Participant’s Target Percentage are determined by the Committee no later than 90 days after
the beginning of each Year or before 25% of the Performance Period has elapsed. 
 Participants in the Plan are the executive officers of the Company. The
Company has a separate Key Management Incentive Compensation Plan for other employees. Awards under the Key Management Incentive Compensation Plan are calculated in substantially the same manner as awards under the Plan. 

For 2018, Awards under the Plan will be determined by achievement of the following Performance Objectives. Additional awards will be made based on the
achievement of Individual Performance Goals, which will be established separately from this Plan and will be wholly independent of Awards under this Plan. 
  

							
	 Participant Type
	  	 Performance Objectives
	  	Relative
Weight	 
	 Corporate Participants
	  	 Return on Capital Employed (ROCE)
	  	 	60	% 
		  	 Cash Flow
	  	 	20	% 
		  	 Individual Performance Goals*
	  	 	20	% 
	 Profit Center Participants
	  	 Return on Capital Employed (ROCE)
	  	 	60	% 
		  	 Free Cash Flow (FCF)
	  	 	20	% 
		  	 Individual Performance Goals*
	  	 	20	% 
		

  

	*	These awards are established outside the Plan. 

 Award Formula for Corporate Participants

 The Performance Objectives for Corporate Participants are calculated as follows: 

 

							
		 	ROCE =	  	 Earnings Before Interest and Taxes (EBIT)
	  	
	 	  	Net Property Plant and Equipment (PP&E) + Working Capital1,2	  	

  

	1 	Quarterly averaging of Net PP&E and Working Capital 

	2 	Working Capital, excluding cash and current maturities of long-term debt, as presented on the Company’s December 31, 2018 Consolidated Balance Sheet 

					
		 	Cash Flow =	  	Earnings Before Interest Taxes Depreciation and Amortization (EBITDA) ± Change in Working Capital1 + Non-Cash Impairments
– Capital Expenditures

  

	1 	Change in Working Capital, excluding cash and current maturities of long-term debt, from December 31, 2017 to December 31, 2018, as reflected on the Company’s Consolidated Balance Sheets

 Awards for Corporate Participants are determined by the Company’s aggregate 2018 financial results. Financial results from
acquisitions are excluded from calculations in the year of acquisition. Financial results from businesses divested during the year will be included in the calculations; however, the Performance Objective targets relating to the divested businesses
will be prorated to reflect only that portion of the year prior to the divestiture. Financial results from businesses classified as discontinued operations will be included in the calculations. Financial results will exclude (i) certain
currency and hedging-related gains and losses, (ii) gains and losses from asset disposals, and (iii) items that are outside the scope of the Company’s core, on-going business activities. 

Performance Objectives shall be adjusted for all items of gain, loss or expense for the fiscal year, as determined in accordance with standards established
under Generally Accepted Accounting Principles, (i) from non-cash impairments; (ii) related to loss contingencies identified in footnotes to the financial statements in the Company’s 2017 10-K; (iii) related to the disposal of a segment of a business; or (iv) related to a change in accounting principle. 

Achievement targets and payout percentages for Corporate Participants’ Performance Objectives are set forth below. No Awards are paid for ROCE
achievement below 38% and Cash Flow below $325 million. The ROCE and Cash Flow payouts are each capped at 150%. Payouts will be interpolated for achievement levels falling between those set out in the schedule. 

2018 
 Corporate Targets
and Payout Schedule 
  

									
	ROCE	  	 	  	Cash Flow
	 Achievement
	  	Payout	  	 	  	Achievement	  	Payout
	 < 38.0%
	  	0%	  		  	   <$325M	  	0%
	    38.0%
	  	50%	  	Threshold	  	     $325M	  	50%
	    41.5%
	  	75%	  		  	  $362.5M	  	75%
	    45.0%
	  	100%	  	Target	  	     $400M	  	100%
	    48.5%
	  	125%	  		  	  $435.5M	  	125%
	    52.0%
	  	150%	  	Maximum	  	     $475M	  	150%

  
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 Award Formula for Profit Center Participants 

Profit Center Participants manage numerous Profit Centers. The Company sets a ROCE target and a Free Cash Flow (FCF) target for each Profit Center every Year
which aggregate to the Segment level. 
 The Performance Objectives for Profit Center Participants are calculated as follows:      

 

							
		 	ROCE =	  	 EBIT
	  	
	 	  	Net PP&E + Working Capital1, 2	  	

  

	1 	Monthly averaging of Net PP&E and Working Capital, adjusted for currency effects. 

	2 	Working Capital excludes cash and current maturities of long-term debt and balance sheet items not directly related to on-going Profit Center activity, such as interest receivable
and payable, income taxes receivable and payable, current deferred tax assets and liabilities, and dividends payable. 

  

					
		 	FCF =	  	EBITDA (adjusted for currency effects) ± Change in Working Capital1 + Non-Cash Impairments – Capital
Expenditures

  

	1 	Change in Working Capital from December 31, 2017 to December 31, 2018 excludes cash and current maturities of long-term debt and balance sheet items not directly related to
on-going Profit Center activity, such as interest receivable and payable, income tax receivable and payable, current deferred taxes assets and liabilities, and dividends payable. 

Financial results from acquisitions are excluded from calculations in the year of acquisition. Financial results from businesses divested during the year will
be included in the calculations; however, the Performance Objective targets relating to the divested businesses will be prorated to reflect only that portion of the year prior to the divestiture. Financial results from businesses classified as
discontinued operations will be included in the calculations. Financial results will exclude (i) results from non-operating branches, (ii) certain currency and hedging-related gains and losses,
(iii) gains and losses from asset disposals, (iv) items that are outside the scope of the Company’s core, on-going business activities or relating to any other special events or change in
business conditions, and (v) the impact of corporate allocations. 
 Performance Objectives shall be adjusted for all items of gain, loss or expense
for the fiscal year, as determined in accordance with standards established under Generally Accepted Accounting Principles, (i) from non-cash impairments; (ii) related to loss contingencies
identified in footnotes to the financial statements in the Company’s 2017 10-K; (iii) related to the disposal of a segment of a business; or (iv) related to a change in accounting principle.

 Financial results for each Profit Center may include a critical compliance adjustment, ranging from a potential 5% increase for exceptional safety
performance to a 20% deduction for critical compliance failures. 

  
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 Achievement targets and payout percentages for Profit Center Participants are set forth below. No Awards are paid
for achievement below 80% of the ROCE and FCF targets. The ROCE and FCF payouts are each capped at 150%. The payout will be interpolated for achievement levels falling between those set out in the schedule. 

2018 
 Profit Center
Targets by Segment 
  

							
	 Segment
	  	    ROCE Target    	  	    FCF Target    	 
	 Residential Products
	  	33.9%	  	 	$169.1M	 
	 Industrial Products
	  	24.0%	  	 	$44.3M	 
	 Specialized Products
	  	53.5%	  	 	$124.3M	 
	 Furniture Products
	  	37.7%	  	 	$84.7M	 

 2018 

Profit Center Payout Schedule 
  

					
	 Achievement
	  	 	  	 Payout

	 <80%
	  		  	0%
	 80%
	  	Threshold	  	60%
	 90%
	  		  	80%
	 100%
	  	Target	  	100%
	 110%
	  		  	120%
	 120%
	  		  	140%
	 125%
	  	Maximum	  	150%

 The President—Residential Products & Industrial Products will have 85% of his Award based upon the Performance
Objectives for Residential Products and 15% based upon the Performance Objectives for Industrial Products. The President—Specialized Products & Furniture Products will have 60% of his Award based upon the Performance Objectives for
Specialized Products and 40% based upon the Performance Objectives for Furniture Products. 
 Sample Calculation 

For Corporate and Profit Center Participants, the Award is calculated by multiplying the Participant’s salary, Target Percentage, the relative weight of
the Performance Objective, and the payout percentage for each Performance Objective. The sample calculation below assumes a Participant with a base salary of $500,000, a Target Percentage of 80%, a ROCE payout of 100%, and Cash Flow/FCF payout of
80%: 
  

																					
	Performance 
Objective	  	Participant’s
Base Salary	 	  	Participant’s
Target %	 	 	Relative
Weight	 	 	Payout 
Percentage	 	 	Award	 
	 ROCE
	  	$	500,000	 	  	 	80	% 	 	 	60	% 	 	 	100	% 	 	$	240,000	 
	 Cash Flow/FCF
	  	$	500,000	 	  	 	80	% 	 	 	20	% 	 	 	80	% 	 	$	64,000	 
		  				  				 				 				 	  
	  
	 
	 Total Award
	  				  				 				 				 	$	304,000	 

  
 4Exhibit 10.2 Summary Sheet of Executive Cash Compensation

 Exhibit 10.2 

SUMMARY SHEET OF EXECUTIVE CASH COMPENSATION 

This Summary Sheet is being updated to reflect the adoption by the Company’s Compensation Committee (the “Committee”), on March 21,
2018, of the 2018 Award Formula under the Key Officers Incentive Plan (“KOIP”), as described below. 
 As previously reported, the
following table sets forth annual base salaries provided to the Company’s principal executive officer, principal financial officer and other named executive officers in 2017 and as adopted for 2018 by the Committee on November 6, 2017.

  

									
	 Named Executive Officers
	  	2017 Base
Salary	 	  	2018 Base
Salary	 
	 Karl G. Glassman, President and CEO
	  	$	1,175,000	 	  	$	1,225,000	 
	 Matthew C. Flanigan, EVP and CFO
	  	$	550,000	 	  	$	572,000	 
	 Perry E. Davis, EVP, President - Residential Products & Industrial Products
	  	$	500,000	 	  	$	512,000	 
	 J. Mitchell Dolloff, EVP, President - Specialized Products & Furniture Products
	  	$	500,000	 	  	$	512,000	 
	 Scott S. Douglas, SVP - General Counsel & Secretary1
	  	$	330,000	 	  	$	380,000	 
	 Jack D. Crusa, SVP - Operations (through
12/31/2017)2
	  	$	152,000	 	  	 	N/A	 

  

	1 	Mr. Douglas’ base salaries are included in this disclosure because he is expected to be included as a named executive officer in the Company’s definitive proxy statement for the 2018 Annual Shareholders
Meeting. 

	2 	Mr. Crusa retired as of December 31, 2017. As part of Mr. Crusa’s retirement transition, he continued to receive an annual base salary of $380,000 until April 2, 2017 when such rate was reduced
to $190,000. His salary rate was further reduced to $152,000 on July 9, 2017. He will not receive a salary in 2018. 

 Except as noted
below, the named executive officers are eligible to receive an annual cash incentive under the Company’s 2014 KOIP (filed March 25, 2014 as Appendix A to the Company’s Proxy Statement) in accordance with the 2018 KOIP Award Formula
(adopted March 21, 2018 and filed March 26, 2018 as Exhibit 10.1 to the Company’s Form 8-K). Each executive’s cash award is calculated by multiplying his annual base salary at the end of
the KOIP plan year by a percentage set by the Committee (the “Target Percentage”), then applying the award formula adopted by the Committee for that year. Corporate Participants and Profit Center Participants have separate award
calculations based on factors defined in the 2018 KOIP Award Formula. These factors include the achievement of Return on Capital Employed (60% relative weight), Cash Flow (for Glassman, Flanigan and Douglas) and Free Cash Flow (for Davis and
Dolloff) each at 20% relative weight, and Individual Performance Goals established outside the KOIP (20% relative weight). As previously reported, the Target Percentages in 2017, and as adopted for 2018 by the Committee on November 6, 2017, for
the principal executive officer, principal financial officer, and other named executive officers are shown in the following table. 
  

									
	 Named Executive Officers
	  	2017 KOIP
Target
Percentage	 	 	2018 KOIP
Target
Percentage	 
	 Karl G. Glassman, President and CEO
	  	 	120	% 	 	 	120	% 
	 Matthew C. Flanigan, EVP and CFO
	  	 	80	% 	 	 	80	% 
	 Perry E. Davis, EVP, President - Residential Products & Industrial Products
	  	 	80	% 	 	 	80	% 
	 J. Mitchell Dolloff, EVP, President - Specialized Products & Furniture Products
	  	 	80	% 	 	 	80	% 
	 Scott S. Douglas, SVP - General Counsel & Secretary1
	  	 	50	% 	 	 	50	% 
	 Jack D. Crusa, SVP - Operations (through
12/31/2017)2
	  	 	N/A	 	 	 	N/A	 

  

	1 	Mr. Douglas’ Target Percentages are included in this disclosure because he is expected to be included as a named executive officer in the Company’s definitive proxy statement for its 2018 Annual
Shareholders Meeting. 

	2 	Mr. Crusa retired as of December 31, 2017. As determined in January 2017, as part of Mr. Crusa’s retirement transition, he participated, in 2017, in the Company’s Key Management Incentive
Compensation Plan (the “KMICP”), which is a cash bonus plan for non-executive officers. The KMICP award formula for Mr. Crusa was adopted on March 22, 2017 and included performance
objectives based on Return on Capital Employed (70% relative weight) and Free Cash Flow (30% relative weight). It was calculated by multiplying his weighted average annual base salary for 2017 by his target percentage of 60%, then applying the award
formula. For more information about the KMICP as it applied to Mr. Crusa for 2017, refer to the Company’s Form 8-K filed March 27, 2017. Because of his retirement, Mr. Crusa will not
participate in the KOIP or the KMICP in 2018. 

 Individual Performance Goals. As previously reported, on November 6, 2017,
the Committee adopted Individual Performance Goals (“IPGs”) for our named executive officers. The 2017 and 2018 KOIP Award Formulas recognize that 20% of each executive’s cash award in 2017 and 2018 respectively, under our KOIP
will be based on the achievement of the IPGs. The IPGs for our named executive officers in 2018 are, and for 2017, were: 
  

					
	 Named Executive Officers
	  	 2017 IPGs
	  	 2018 IPGs

	 Karl G. Glassman
 President and
CEO
	  	Strategic planning and succession planning	  	Implementation of growth strategy and succession planning
			
	 Matthew C. Flanigan
 EVP and CFO
	  	Strategic planning, information technology projects, succession planning and efficiency initiatives	  	Implementation of growth strategy, succession planning and financial partner initiatives
			
	 Perry E. Davis
 EVP, President -
Residential
 Products & Industrial Products
	  	Growth initiatives and succession planning	  	Supply chain and growth initiatives and succession planning
			
	 J. Mitchell Dolloff
 EVP, President -
Specialized
 Products & Furniture Products
	  	Strategic planning, succession planning and efficiency initiatives	  	Implementation of growth strategy, succession planning and efficiency initiatives
			
	 Scott S. Douglas1

SVP - General Counsel &
 Secretary
	  	Strategic planning, succession planning and cost initiatives	  	Implementation of growth strategy and succession planning
			
	 Jack D. Crusa2

SVP – Operations (through 12/31/2017)
	  	None assigned	  	N/A

  

	1 	Mr. Douglas’ IPGs are being disclosed because he is expected to be included as a named executive officer in the Company’s definitive proxy statement for the 2018 Annual Shareholders Meeting.

	2 	Mr. Crusa retired as of December 31, 2017. As part of Mr. Crusa’s retirement transition, he participated in the KMICP in 2017, which is a cash bonus plan for
non-executive officers. As such, he did not receive IPGs for 2017. Given his December 31, 2017 retirement, Mr. Crusa will not have IPGs in 2018. 

The achievement of the IPGs is measured by the following schedule. 

Individual Performance Goals Payout Schedule 

(1-5 scale) 
  

					
	 Achievement
	  	Payout	 
	 1 - Did not achieve goal
	  	 	0	% 
	 2 - Partially achieved goal
	  	 	50	% 
	 3 - Substantially achieved goal
	  	 	75	% 
	 4 - Fully achieved goal
	  	 	100	% 
	 5 - Significantly exceeded goal
	  	 	up to 150	% 

  
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