[1]

ertain key management employees participate in a Profitable Growth Incentive (PGI) program. The PGI awards are issued as growth performance stock units (GPSUs). The GPSUs vest (0% to 250%) at the end of a two-year performance period. Vesting is based on the Company's or applicable profit center's revenue growth (adjusted by a GDP factor when applicable) and EBITDA margin at the end of a two-year performance period. The 2016 and 2015 base target PGI awards were less than .1 shares. If earned, we intend to pay half in shares of our common stock and half in cash, although we reserve the right to pay up to 100% in cash. Both components are adjusted to fair value at each reporting period.Two-Year Performance CycleAward Year Completion Date Average Payout as aPercent of theBase Award Number of SharesDistributed Cash Portion Distribution Date2013 December 31, 2014 127.0% .1 million $3.5 February 20152014 December 31, 2015 224.7% .2 million $6.7 February 2016

[2]

Performance Stock Unit AwardsWe grant Performance Stock Unit (PSU) awards in the first quarter of each year to selected officers and other key managers. Expense is recognized using the straight-line method over the three-year vesting period. These awards contain the following conditions:•A service requirement—Awards generally “cliff” vest three years following the grant date; and•A market condition—Awards are based on our Total Shareholder Return [TSR = (Change in Stock Price + Dividends) / Beginning Stock Price] as compared to the TSR of a group of peer companies. The peer group consists of all the companies in the Industrial, Materials and Consumer Discretionary sectors of the S&P 500 and S&P Midcap 400 (approximately 320 companies). Participants will earn from 0% to 175% of the base award depending upon how our Total Shareholder Return ranks within the peer group at the end of the 3-year performance period. Grant date fair values are calculated using a Monte Carlo simulation of stock and volatility data for Leggett and each of the peer companies.Below is a summary of the number of shares and related grant date fair value of PSU’s for the periods presented. Six Months Ended June 30, 2016 2015Total shares base award.1 .2Grant date per share fair value$40.16 $42.22Risk-free interest rate1.3% 1.1%Expected life in years3.0 3.0Expected volatility (over expected life)19.2% 19.8%Expected dividend yield (over expected life)3.1% 2.9%Three-Year Performance CycleAward Year Completion Date TSR PerformanceRelative to the Peer Group (1%=Best) Payout as aPercent of theBase Award Number of SharesDistributed Cash Portion Distribution Date2012 December 31, 2014 30th percentile 157.0% .4 million $9.9 January 20152013 December 31, 2015 27th percentile 165.4% .4 million $8.5 January 2016For outstanding awards, we intend to pay 65% in shares of our common stock, although we reserve the right to pay up to 100% in cash. The additional amount that represents 35% of the award will be settled in cash, and is recorded as a liability and adjusted to fair value at each reporting period.

[3]

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[4]

Profitable Growth Incentive AwardsCertain key management employees participate in a Profitable Growth Incentive (PGI) program. The PGI awards are issued as growth performance stock units (GPSUs). The GPSUs vest (0% to 250%) at the end of a two-year performance period. Vesting is based on the Company's or applicable profit center's revenue growth (adjusted by a GDP factor when applicable) and EBITDA margin at the end of a two-year performance period. The 2016 and 2015 base target PGI awards were less than .1 shares. If earned, we intend to pay half in shares of our common stock and half in cash, although we reserve the right to pay up to 100% in cash. Both components are adjusted to fair value at each reporting period.