Document:

2012 Award Formula Under the Company's 2009 Key Officers Incentive Plan

 Exhibit 10.2 
 AWARD FORMULA FOR 2012 
 LEGGETT & PLATT, INCORPORATED

 2009 KEY OFFICERS INCENTIVE PLAN 
 The 2009 Key Officers Incentive Plan (“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 Plan for other employees. Awards under the Key Management Incentive Plan are
calculated in substantially the same manner as awards under the Plan. 
 For 2012, 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 
 Awards for Corporate Participants are
determined by the Company’s aggregate 2012 financial results. Financial results from acquisitions are excluded from calculations in the year of acquisition. 
 The Performance Objectives for Corporate Participants are calculated as follows: 
  

					
	 ROCE = 
	  	EBIT	  	
		  	Net PP&E and 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, 2012 Consolidated Balance Sheet 

	 	Cash Flow =	 EBITDA ± Change in Working Capital1 ± Gain or Loss from Non-Cash Impairments – Capital Expenditures 

 

	1	 Change in Working
Capital, excluding cash and current maturities of long-term debt, from December 31, 2011 to December 31, 2012, as reflected on the Company’s Consolidated Balance Sheets 

The Committee shall adjust all items of gain, loss or expense for the fiscal year determined to be (i) extraordinary, (ii) unusual in nature,
(iii) infrequent in occurrence, (iv) related to the disposal of a segment of a business, or (v) related to a change in accounting principle, all as determined in accordance with standards established under Generally Accepted
Accounting Principles. 
 Achievement targets and payout percentages for Corporate Participants’ Performance Objectives are set forth
below. No Awards are paid for ROCE achievement below 25% and Cash Flow below $226M. 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.

 2012 
 Corporate Targets and Payout Schedule 
  

									
	ROCE	 	 	  	Cash Flow
	
            Achievement         
   
	  	            Payout       
     	 	 	  	            Achievement      
      	  	            Payout       
     
	< 25%	  	0%	 		  	        <$226M	  	0%
	    25%	  	50%	 	Threshold	  	          $226M	  	50%
	    27%	  	75%	 		  	          $238.5M	  	75%
	    29%	  	100%	 	Target	  	          $251M	  	100%
	    31%	  	125%	 		  	          $263.5M	  	125%
	    33%	  	150%	 	Maximum	  	          $276M	  	150%

 The Award is calculated by multiplying a Participant’s salary, Target Percentage, the relative weight of the
Performance Objective, and the payout percentage. The sample calculation set forth below assumes a Participant with a base salary of $250,000 and a Target Percentage of 50%. If the Company achieved 29% ROCE and $226M Cash Flow, the
Participant’s Award under the Plan (which does not include the Individual Performance Goals), would be $87,500. 
  

											
	 Performance Objective
	 	 Participant’s

Base Salary
	 	 Participant’s

Target %
	 	 Relative

Weight
	 	 Payout

Percentage
	 	 Award

	 ROCE
	 	$250,000	 	50%	 	60%	 	100%	 	$75,000
	 Cash Flow
	 	$250,000	 	50%	 	20%	 	50%	 	$12,500
		 		 		 		 		 	  

	 Total Award
	 		 		 		 		 	$87,500

 Award Formula for Profit Center Participants 
 Profit Center Participants manage numerous Profit Centers. The Company sets a ROCE target and a FCF target for each Profit Center every Year. The achievement of those Profit Center targets “rolls
up” to an aggregate achievement for all the operations under a Profit Center Participant’s management. 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. Financial results from acquisitions are excluded from calculations in the year of acquisition. 

 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 taxes assets and
liabilities, and dividends payable. 

  

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

 

	1	 Change in Working
Capital from December 31, 2011 to December 31, 2012 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 taxes assets and liabilities, and dividends payable. 

 The Committee shall
adjust all items of gain, loss or expense for the fiscal year determined to be (i) extraordinary, (ii) unusual in nature, (iii) infrequent in occurrence, (iv) related to the disposal of a segment of a business, or
(v) related to a change in accounting principle, all as determined in accordance with standards established under Generally Accepted Accounting Principles. 
 Achievement targets and payout percentages for Profit Center Participants are set forth below. No Awards are paid for achievement below 80% of the aggregate ROCE and FCF targets for the Profit Centers
under the Participant’s management. 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. 

2012 

Profit Center Targets 
  

					
	 Segment
	 	 ROCE Target
	 	 FCF Target

	 Residential
	 	24.3%	 	$117.5M
	 Commercial
	 	19.2%	 	$53.8M
	 Industrial
	 	30.6%	 	$59.0M
	 Specialized
	 	32.7%	 	$39.2M

 2012 
 Profit Center Payout Schedule 
  

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

 The Award is calculated by multiplying a Participant’s salary, Target Percentage, the relative weight of the
Performance Objective, and the payout percentage. The sample calculation below assumes a Participant with a base salary of $250,000 and a Target Percentage of 50%. If the Participant’s Profit Centers achieved 100% of the aggregate ROCE target
and 90% of the aggregate FCF target, as adjusted for compliance, the Participant’s Award under the Plan (which does not include the Individual Performance Goals), would be $95,000. 

 

											
	 Performance Objective
	 	 Participant’s

Base Salary
	 	 Participant’s

Target %
	 	 Relative

Weight
	 	 Payout

Percentage
	 	 Award

	 ROCE
	 	$250,000	 	50%	 	60%	 	100%	 	$75,000
	 FCF
	 	$250,000	 	50%	 	20%	 	80%	 	$20,000
		 		 		 		 		 	  

	 Total Award
	 		 		 		 		 	$95,000Summary Sheet for Executive Cash Compensation

 Exhibit 10.3 
 SUMMARY SHEET FOR EXECUTIVE CASH COMPENSATION 
 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 2011 and the 2012 base salaries approved by the Compensation Committee of the Board of Directors
(“Committee”) on March 28, 2012. 
  

									
	 Named Executive Officers
	  	2011 Base
Salaries	 	  	2012 Base
Salaries	 
	 David S. Haffner, President and Chief Executive Officer
	  	$	960,000	  	  	$	995,000	  
	 Karl G. Glassman, Executive Vice President and Chief Operating Officer
	  	$	720,000	  	  	$	745,000	  
	 Matthew C. Flanigan, Senior Vice President – Chief Financial Officer
	  	$	420,000	  	  	$	441,000	  
	 Joseph D. Downes, Jr., Senior Vice President, President – Industrial Materials
	  	$	320,000	  	  	$	329,000	  

 The executive officers will also be eligible to receive a cash award under the Company’s 2009 Key Officers Incentive
Plan (filed March 26, 2009 as Appendix B to the Company’s Proxy Statement) in accordance with the 2012 Award Formula (filed April 2, 2012 as Exhibit 10.2 to the Company’s Form 8-K). An executive’s cash award is calculated by
multiplying his annual salary at the end of the year by a percentage (“Target Percentage”) set by the Committee, then applying an award formula adopted by the Committee for that year. The Target Percentages applicable to the Company’s
principal executive officer, principal financial officer and other named executive officers are shown in the following table. The 2012 Target Percentages were not changed from 2011 levels, except for Mr. Haffner’s percentage was increased
from 90% to 100%. 
  

					
	 Named Executive Officers
	  	2012 Target
Percentages	 
	 David S. Haffner, President and Chief Executive Officer
	  	 	100	%
	 Karl G. Glassman, Executive Vice President and Chief Operating Officer
	  	 	75	%
	 Matthew C. Flanigan, Senior Vice President – Chief Financial Officer
	  	 	65	%
	 Joseph D. Downes, Jr., Senior Vice President, President – Industrial Materials
	  	 	50	%

 Individual Performance Goals. An executive’s cash award under the 2012 Award Formula is based, in part, on
individual performance goals established outside the 2009 Key Officers Incentive Plan (20% relative weight). The types of goals for our named executive officers in 2012 include: 
 David S. Haffner: Margin enhancement, strategic direction for profitable growth, profitability of targeted business groups, and succession planning; 

Karl G. Glassman: Margin enhancement, revenue growth, increase on-site reviews of operations, and remediation of internal audit findings;

 Matthew C. Flanigan: Working capital management, upgrade of financial systems, cash repatriation, succession planning, and
continuous improvement projects; and 
 Joseph D. Downes, Jr.: Segment revenue growth, profitability of targeted businesses, and
utilization and efficiency initiatives. 
 The achievement of the individual performance goals is measured by the following scale. 

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	% 

 Retired Named Executive Officer. Paul R. Hauser, a named executive officer in the Company’s Proxy
Statement filed March 30, 2012, retired as Senior Vice President, President—Residential Furnishings on February 18, 2012. As such, Mr. Hauser (i) will not participate in the Key Officers Incentive Plan in 2012;
(ii) does not have individual performance goals for the Company in 2012; and (iii) no longer receives a salary from the Company. As previously reported, Mr. Hauser received an annual base salary at the rate of $340,000 with a Target
Percentage of 50% in 2011.

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