Exhibit 10.3

	 


		 


	 	 
	 	                March 3, 2006


	 
	
Mr. Matthew Simoncini

[home address]

Dear Matt:

                Lear Corporation (the “Company”) considers it essential to its best interest and the best
interests of its stockholders to foster the continued employment of key management personnel.

                The Board of Directors of the Company (the “Board”) has determined that appropriate steps
should be taken to reinforce and encourage the continued attention and dedication of members of the
Company’s management, including yourself, to their assigned duties. The Board recognizes that,
as is the case with many publicly-held companies, the possibility of a Change in Control (as that
term is hereafter defined) exists. The Company wishes to assure itself of both present and future
continuity of management in the event of any Change in Control. In order to induce you to remain
in the employ of the Company, and in consideration of your agreement to the termination of any existing
employment contract you may have with the Company or any predecessor, the Company agrees that you
shall receive, upon the terms and conditions set forth herein, the compensation and benefits set
forth in this letter agreement (“Agreement”) during the Term hereof.

                1.             Term of Agreement.  This Agreement shall commence as of February 24, 2006 (“Effective Date”). The initial
term of this Agreement shall be two (2) years from the Effective Date. The term of this Agreement
shall at all times be two (2) years, that is, the term of this Agreement shall be automatically extended
each day for an additional day such that this Agreement shall continually have an unexpired term
of two (2) years, until the date two (2) years after written notice is provided by either the Company
or the Executive that this Agreement is not to be further extended (a “Notice of Non-Renewal”),
the date set forth in a Notice of Termination provided pursuant to Section 4, the date of the Executive’s
death, or the date the Executive reaches his or her normal retirement date under the Lear Corporation
Pension Plan or its successor, whichever shall first occur (the initial term as so extended is referred
to herein as the “Term”).



	











	
March 3, 2006

Page 2 of 18

                2.             Terms of Employment.  During the Term, you agree to be a full-time employee of the Company serving initially in the
position of Vice President of Global Finance* of the Company. You agree to devote substantially all
of your working time and attention to the business and affairs of the Company, to discharge the responsibilities
associated with your position with the Company, and to use your best efforts to perform faithfully
and efficiently such responsibilities. In addition, you agree to serve in such other or different
capacities or offices to which you may be assigned, appointed or elected from time to time by the
Company. Nothing herein shall prohibit you from devoting your time to civic and community activities,
serving as a member of the Board of Directors of other corporations that do not compete with the
Company, or managing personal investments, as long as the foregoing do not interfere with the performance
of your duties hereunder or violate the terms of the Company’s Code of Business Ethics and Conduct,
the Company’s Corporate Governance Guidelines, or other policies applicable to the Company’s
executives generally, as those policies may be amended from time to time by the Company.

                3.             Compensation.

                (a)           As compensation for your services,
under this Agreement, you shall be entitled during the Term to receive an initial base salary the
annualized amount of which shall be $400,000.00**, to be paid in accordance with existing payroll
practices for executives of the Company. Increases in your base salary, if any, shall be as approved
by the Compensation Committee of the Board. In addition, you shall be eligible to receive an annual
incentive compensation bonus (“Bonus”) to be approved from time to time by the Compensation
Committee of the Board.

                (b)           During the Term, you shall be
eligible for participation in the welfare, retirement, perquisite and fringe benefit, and other benefit
plans, practices, policies and programs, as may be in effect from time to time, for senior executives
of the Company generally.

                (c)           During the Term, you shall be
eligible for prompt reimbursement for business expenses reasonably incurred by you in accordance
with the Company’s policies, as may be in effect from time to time, for its senior executives
generally.

                4.             Termination of Employment.   

                (a)           Notice. You or the Company may terminate the employment relationship by giving a Notice of Non-Renewal, as
described in Section 1. Alternatively, the employment relationship may be terminated by the Company
with or without Cause, by the Company for Incapacity, or by you with or without Good Reason, all
as defined below, by giving a Notice of Termination. For purposes of this Agreement, a “Notice
of Termination” shall mean a notice which shall indicate the specific termination provision
in this Agreement relied upon, if any, and shall set forth in reasonable detail the facts and circumstances
claimed to provide a basis for termination of your employment under the provision so indicated. All
notices under this Section 4(a) shall be given in accordance with the requirements of Section 9.




	 
	

	* Senior Vice President
        and Chief Financial Officer as of October 1, 2007.

	** Current base salary
      was $500,000 as of October 1, 2007.



	











	
March 3, 2006

Page 3 of 18

                (b)           Incapacity.  If the Company reasonably determines that you are unable at any time to perform the duties of
your position because of a serious illness, injury, impairment, or physical or mental condition and
you are not eligible for or have exhausted all leave to which you may be entitled under the Family
and Medical Leave Act (“FMLA”) or, if more generous, other applicable state or local law,
the Company may terminate your employment for “Incapacity”. In addition, at any time that
you are on a leave of absence, the Company may temporarily reassign the duties of your position to
one or more other executives without creating a basis for your Good Reason resignation, provided
that the Company restores such duties to you upon your return to work. 

                (c)           Cause.  Termination of your employment for “Cause” shall mean termination upon: 

	 


	 	(i)            an act of fraud, embezzlement
or theft by you in connection with your duties or in the course of your employment with the Company;
		 
	 	(ii)           your material breach of any provision
of this Agreement, provided that in those instances in which your material breach is capable of being
cured, you have failed to cure within a thirty (30) day period after notice from the Company;
		 
	 	(iii)          an act or omission, which is (x) willful
or grossly negligent, (y) contrary to established policies or practices of the Company, and (z) materially
harmful to the business or reputation of the Company, or to the business of the Company’s customers
or suppliers as such relate to the Company; or
		 
	 	(iv)          a plea of nolo contendere to, or conviction for, a felony. 


	 
	
                (d)          Good Reason.  For purposes of this Agreement, “Good Reason” shall mean the occurrence of any of
the following circumstances or events:

	 


	 	(i)            any reduction by the Company
in your base salary or adverse change in the manner of computing your Bonus, as in effect from time
to time, except for across-the-board salary reductions or changes to the manner of computing bonuses
similarly affecting all executive officers of the Company subject to Section 16(b) of the Securities
Exchange Act of 1934, as determined by the Board (“executive officers”);
		 
	 	(ii)           the failure by the Company to
pay or provide to you any amounts of base salary or Bonus or any benefits which are due, owing and
payable to you pursuant to the terms hereof, except pursuant to an across-the-board compensation
deferral similarly affecting all executive officers, or to pay to you any portion of an installment
of deferred compensation due under any deferred compensation program of the Company;
		 
	 	(iii)          except in the case of across-the-board
reductions, deferrals, eliminations, or plan modifications similarly affecting all executive officers,
the failure by the Company to continue to provide you with benefits substantially similar in
the aggregate to the Company’s life insurance, medical, dental, health, accident or disability
plans in which you are participating at the date of this Agreement; 


	











	
March 3, 2006

Page 4 of 18


	 


	 	(iv)          without limiting the generality or
effect of the foregoing, any material breach of this Agreement by the Company.


	 
	
However, the language in Sections 4(d)(i) through (iii) concerning reductions, changes, deferrals,
eliminations, or plan modifications similarly affecting all executive officers of the Company shall
not be applicable to circumstances or events occurring in anticipation of, or within one year after,
a Change in Control, as defined in Section 4(e). In addition, upon a Change in Control, you shall
have the right to resign for Good Reason if your principal place of employment is transferred to
a location fifty (50) or more miles from its location immediately preceding the transfer. 

Notwithstanding anything else herein, Good Reason shall not exist if, with regard to the circumstances
or events relied upon in your Notice of Termination: (x) you failed to provide a Notice of Termination
to the Company within sixty (60) days of the date you knew or should have known of such circumstances
or events, (y) the circumstances or events are fully corrected by the Company prior to the Date of
Termination, or (z) you give your express written consent to the circumstances or events.

                (e)           Change in Control.  For purposes of this Agreement, a “Change in Control” of the Company shall be deemed
to have occurred as of the first day any one or more of the following paragraphs is satisfied:

	 


	 	(i)            any Person as that term
is used in Section 13(d)(3) or Section 14(d)(2) of the Securities Exchange Act of 1934 (the “Exchange
Act”) (other than the Company or a trustee or other fiduciary holding securities under an employee
benefit plan of the Company, or a corporation owned directly or indirectly by the shareholders of
the Company in substantially the same proportions as their ownership of stock of the Company) becomes
the Beneficial Owner, as that term is defined in Rule 13d-3 of the General Rules and Regulations
under the Exchange Act, directly or indirectly, of securities of the Company, representing more than
twenty percent of the combined voting power of the Company’s then outstanding securities.
		 
	 	(ii)           during any period of twenty-six
(26) consecutive months beginning on or after the Effective Date, individuals who at the beginning
of the period constituted the Board cease for any reason (other than death, disability or voluntary
retirement) to constitute a majority of the Board. For this purpose, any new Director whose election
by the Board, or nomination for election by the Company’s shareholders, was approved by a vote
of at least two-thirds of the Directors then still in office, and who either were Directors at the
beginning of the period or whose election or nomination for election was so approved, will be deemed
to have been a Director at the beginning of any twenty-six month period under consideration.
		 
	 	(iii)          the shareholders of the Company approve: (A)
a plan of complete liquidation or dissolution of the Company; or (B) an agreement for the sale or
disposition of all or substantially all the Company’s assets; or (C) a merger, consolidation
or reorganization of 


	











	
March 3, 2006

Page 5 of 18


	 


	 	the Company with or involving any other corporation, other than a merger, consolidation or reorganization
that would result in the voting securities of the Company outstanding immediately prior thereto continuing
to represent (either by remaining outstanding or by being converted into voting securities of the
surviving entity) at least eighty percent of the combined voting power of the voting securities of
the Company (or such surviving entity) outstanding immediately after such merger, consolidation,
or reorganization.


	 
	
                (f)           Date of Termination.  “Date of Termination” shall mean

	 


	 	(i)            if your employment is terminated
by reason of your death, the date of your death;
		 
	 	(ii)           if your employment is terminated by
the Company for any reason other than because of your death, the date specified in the Notice of
Termination (which shall not be prior to the date of the notice);
		 
	 	(iii)          if your employment is terminated by you
for any reason, the Date of Termination shall be not less than thirty (30) nor more than sixty (60)
days from the date such Notice of Termination is given, or such earlier date after the date such
Notice of Termination is given as may be identified by the Company.


	 
	
Unless the Company instructs you not to do so, you shall continue to perform services as provided in
this Agreement through the Date of Termination.

                (g)           Employee Benefits.  A termination by the Company pursuant to Section 4(c) hereof or by you pursuant to Section 4(d)
hereof shall not affect any rights which you may have pursuant to any other agreement, policy, plan,
program or arrangement of the Company providing employee benefits, which rights shall be governed
by the terms thereof and by Section 5; provided, however, that if you shall have received or shall
be receiving benefits under Section 5(a), (c), or (d) hereof and, if applicable, Section 6 hereof,
you shall not be entitled to receive benefits under any other policy, plan, program or arrangement
of the Company providing severance compensation to which you would otherwise be entitled.

                5.             Compensation Upon Termination.  Upon your termination of employment, you shall receive:

                (a)           If your employment shall be terminated
by the Company for Incapacity, (i) for the period from the Date of Termination until the end of the
calendar year in which such termination occurs, you shall receive all compensation payable to you
under the Company’s disability and medical plans and programs, as in effect on the Date of Termination,
plus an additional payment from the Company (if necessary) such that the aggregate amount received
by you from all sources equals your base salary, at the rate in effect on the Date of Termination,
plus any Bonus and all other amounts to which you would have been entitled under any compensation
or benefit plans of the Company had your employment continued until the end of the calendar year,
(ii) for the period from the end of the calendar year in which such termination occurs until two
(2) years from the Date of Termination (the “Payment End Date”), you shall receive all
compensation payable to you



	











	
March 3, 2006

Page 6 of 18

under the Company’s disability and medical plans and programs, as in effect on the Date of Termination,
plus an additional payment from the Company (if necessary) such that the aggregate amount received
by you from all sources equals your base salary at the rate in effect on the Date of Termination,
and (iii) for purposes of outstanding awards and amounts owing or accrued as described in Section
5(d)(iii) of this Agreement, your employment shall be deemed to have been terminated due to your
Disability (as that term is defined in the plans, programs, or arrangements described in Section
5(d)(iii) of this Agreement). After the Payment End Date, your benefits shall be determined under
the Company’s retirement, insurance and other compensation programs then in effect in accordance
with the terms of such programs. The additional payments by the Company described in this Section
5(a) shall be conditioned upon the execution by you or a representative with legal authority to act
on your behalf of a general release relating to your employment in form and substance reasonably
acceptable to the Company.

                (b)           If your employment shall be terminated
(i) by the Company for Cause or by a Notice of Non-Renewal, or (ii) by you other than for Good Reason,
the Company shall pay you your base salary through the Date of Termination, at the rate in effect
at the time Notice of Termination is given, plus all other amounts to which you are fully vested
and irrevocably entitled under any compensation or benefit plans of the Company as of the Date of
Termination, and the Company shall have no further obligations in any respect whatsoever for payment
of compensation or benefits to you under this Agreement. Provided, however, that if your employment
is terminated by you other than for Good Reason, you shall be compensated under this Section 5(b)
only to the extent that you actively performed your assigned responsibilities through the Date of
Termination. In addition, you acknowledge that a termination of employment described in this Section
5(b) shall not be considered an End of Service Date for any and all outstanding stock options to
which you are a party, except to the extent it would otherwise qualify as a Retirement thereunder.

                (c)           If your employment shall be terminated
by reason of your death, the Company shall pay your estate or designated beneficiary (as designated
by you by written notice to the Company, which designation shall remain in effect for the remainder
of the Term and any extensions thereof until revoked or a new beneficiary is designated, in either
case by written notice to the Company) your base salary through the Date of Termination, plus a Bonus
prorated for the portion of the Bonus measurement period occurring prior to the date of your death,
plus all other amounts to which you are entitled under any compensation or benefit plans of the Company
at the date of your death, including, but not limited to, all life insurance proceeds payable on
your death to which your estate or beneficiaries are otherwise entitled in accordance with the terms
thereof, and the Company shall have no further obligation to you, your beneficiaries or your estate
under this Agreement.

                (d)           If your employment shall be terminated
(a) by the Company, except for a termination by the Company for Cause or Incapacity or by a Notice
of Non-Renewal (or due to your death), or (b) by you for Good Reason, then you shall be entitled
to the benefits provided below:



	











	
March 3, 2006

Page 7 of 18


	 


	 	(i)            The Company shall pay you
your full base salary through the Date of Termination at the rate in effect at the time Notice of
Termination is given (or, if greater, at the rate in effect at any time within 90 days prior to the
time Notice of Termination is given), plus all other amounts to which you are entitled under any
compensation or benefit plans of the Company, including, without limitation, a Bonus prorated for
the portion of the Bonus measurement period occurring prior to the Date of Termination, at the time
such payments are due, except as otherwise provided below.
		 
	 	(ii)           Conditioned upon your execution
of a general release relating to your employment in form and substance reasonably acceptable to the
Company, the Company shall pay or cause to be paid to you, in lieu of any further payments to you
for the portion of the Term subsequent to the Termination Date an amount (the “Severance Payment”),
which shall be equal to the sum of:
		 


		(A)	      the aggregate base salary (at the highest rate
in effect at any time during the Term) which you would have received pursuant to this Agreement for
the Severance Period had your employment with the Company continued for such period, and
			 
		(B)	      the aggregate Bonus (based upon the highest
annual Bonus that you received with respect to any calendar year during the two years immediately
preceding the calendar year in which the Termination Date occurred, or, in the event that the Termination
Date occurs prior to the first anniversary of the Effective Date, then based upon the highest annual
Bonus that you received with respect to any calendar year during the three years immediately preceding
the calendar year in which the Termination Date occurred) which you would have received pursuant
to this Agreement for the Severance Period, had your employment with the Company continued for such period.
			 


	 	The Severance Payment shall be paid over a period of one (1) year (the “Severance Period”)
in the following manner: an amount equal to fifty percent (50%) of the value of the Severance Payment,
or, if the Severance Period is adjusted per Section 10(e), then an amount equal to twenty-five percent
(25%) of the value of the Severance Payment, paid in a lump sum as soon as administratively practicable
after your Termination Date; and an amount equal to the remaining fifty percent (50%) or seventy-five
percent (75%), as applicable, paid in equal semi-monthly installments, without interest, beginning
six (6) months after the Termination Date and continuing through the end of the Severance Period.
Notwithstanding the foregoing, in the event that the Termination Date occurs prior to the first anniversary
of the Effective Date, the Severance Period will be increased by one year. 
		 
	 	 (iii)          All outstanding awards, and all amounts owing or accrued, on the Date of Termination
under the Lear Corporation Long-Term Stock Incentive Plan (“LTSIP”), the Lear Corporation
Management Stock Purchase Plan (“MSPP”), the Lear Corporation Executive Supplemental Savings
Plan (“ESSP”) and the Lear Corporation Pension Equalization Program (“PEP”),
and any other compensation or equity-based plan, program


	











	
March 3, 2006

Page 8 of 18


	 


	 	or arrangement of the Company in which you participated (including, following a Change in Control,
any additional accruals provided thereunder due to a Change in Control) will be paid to you under
the terms and conditions of such plans, programs and arrangements (and the award agreements and other
documents thereunder), as modified by this Section 5(d)(iii). Your awards and amounts owing or accrued
that vest based on the passage of time and/or continued service (and not based primarily upon the
satisfaction of performance measures, as described below) will vest as scheduled during the Severance
Period as if you had remained employed; to the extent such awards and amounts owing or accrued, other
than those stock options held by you on the Effective Date, have not vested by the end of your Severance
Period, they will become vested and nonforfeitable on a pro rata basis determined by multiplying
the unvested awards and amounts by a fraction, the numerator of which is the number of full months
that elapsed from the grant date to the end of your Severance Period, as adjusted by Section 10(e),
and the denominator of which is the number of full months in the total vesting period. Your vested
stock options shall be exercisable (A) prior to a Change in Control, for thirteen months following
your Date of Termination (but not later than the date on which the stock options would otherwise
expire if you remained employed by the Company), and (B) following a Change in Control, throughout
their entire term. In the case of those awards and amounts owing or accrued which would otherwise
have become vested and nonforfeitable primarily upon the satisfaction of performance measures set
forth in the relevant award agreement, plan, program or arrangement, you shall be paid in stock as
soon as administratively feasible after the end of the relevant performance period (or such earlier
period as the other participants in such award agreement, plan, program or arrangement are eligible
to be paid out), a pro rata amount (if and to the extent all relevant performance objectives are
actually achieved at target levels), based on a fraction, the numerator of which is the number of
full months that elapsed from the grant date to your Date of Termination and the denominator of which
is the number of full months in the relevant performance period. 
		 
	 	You and the Company acknowledge that references in this Section 5(d)(iii) to the PEP, the MSPP, the
ESSP, and the LTSIP, shall be deemed to be references to such plans as amended or restated from time
to time and to any similar plan of the Company that supplements or supersedes any such plans. In
addition, you and the Company acknowledge that references in this Section 5 to any Section of the
Code shall be deemed to be references to such Section as amended from time to time or to any successor
thereto.
		 
	 	(iv)          The Company shall arrange to provide
to you, your dependents, and beneficiaries, for the Severance Period, benefits provided under any
“welfare benefit plan” of the Company (as the term “welfare benefit plan” is
defined in Section 3(1) of the Employee Retirement Income Security Act of 1974, as amended) (“Welfare
Benefits”). If and to the extent that any such Welfare Benefits shall not or cannot be paid
or provided under any policy, plan, program or arrangement of the Company (A) solely due to the fact
that you are no longer an officer or employee of the Company or did not continue as an officer or
employee of the Company during the remainder of the Term or (B) as a result of the amendment or termination
of any plan providing for Welfare Benefits, the Company shall then itself pay or provide for the
payment of such Welfare Benefits to you, your dependents


	











	
March 3, 2006

Page 9 of 18


	 


	 	and beneficiaries. Without otherwise limiting the purposes or effect of the no mitigation obligation
in Section 5(h) hereof, Welfare Benefits payable to you (including your dependents and beneficiaries)
pursuant to this Section 5(d)(iv) shall be reduced to the extent comparable welfare benefits are
actually received by you (including your dependents and beneficiaries) from another employer during
such period, and any such benefits actually received by you shall be reported by you to the Company.
		 
	 	(v)           Your right to acquire any shares
of the Company’s capital stock under any and all outstanding stock options, or other rights
previously granted to you under any equity-based plans of the Company shall be governed by the express
terms of such plans and the applicable agreements thereunder, except as provided in Section 5(a),
5(b), or 5(d)(iii) of this Agreement. 


	 
	
                (e)           Any Bonus that is payable to you
with respect to a period that is less than a full calendar year (a “partial calendar year”)
shall be prorated by multiplying (i) the Bonus that would have been payable to you with respect to
the entire calendar year had your employment with the Company continued until the end of such year
by (ii) a fraction, the numerator of which equals the number of days in the partial calendar year
and the denominator of which equals 365.

                (f)            Unless your Date of Termination
occurs within one year after a Change in Control, the Company, if permitted by law, may set-off or
counterclaim losses, fines or damages in respect of any claim, debt or obligation against any payment
to or benefit for you provided for in this Agreement.

                (g)           Without limiting your rights at
law or in equity, if the Company fails to make any payment or provide any benefit required to be
made or provided hereunder within thirty (30) days of the date it is due, the Company will pay interest
on the amount or value thereof at an annualized rate of interest equal to the “prime rate”
as quoted from time to time during the relevant period in The Wall Street Journal, plus three percent.
Such interest will be payable as it accrues on demand. Any change in such prime rate will be effective
on and as of the date of such change.

                (h)           The Company acknowledges that
its severance pay plans and policies applicable in general to its salaried employees do not provide
for mitigation, offset or reduction of any severance payment received thereunder. Accordingly, the
parties hereto expressly agree that the payment of the severance compensation by the Company to you
in accordance with the terms of this Agreement shall be liquidated damages and that you shall not
be required to mitigate the amount of any payment provided for in this Agreement by seeking other
employment or otherwise, nor shall any profits, income, earnings or other benefits from any source
whatsoever create any mitigation, offset, reduction or any other obligation on the part of you hereunder
or otherwise, except as expressly provided in this Section 5.

                6.             Certain Additional Payments by the Company.

                (a)           Anything in this Agreement to
the contrary notwithstanding, in the event that it shall be determined (as hereafter provided) that
any payment (or benefit provided) by the Company



	











	
March 3, 2006

Page 10 of 18

to or for your benefit, whether paid or payable pursuant to the terms of this Agreement or otherwise
(a “Payment”), would be subject to the excise tax imposed by Section 4999 (or any successor
thereto) of the Code, and any interest or penalties with respect to such excise tax (such excise
tax, together with any such interest and penalties, are hereafter collectively referred to as the
“Excise Tax”), then you shall be entitled to receive an additional payment or payments
(collectively, a “Gross-Up Payment”), including without limitation any Gross-Up Payment
made with respect to the Excise Tax, if any, attributable to (i) any incentive stock option, as defined
by Section 422 of the Code (“ISO”), or (ii) any stock appreciation or similar right, whether
or not limited, granted in tandem with any ISO. The Gross-Up Payment shall be in an amount such that,
after payment by you of the Excise Tax, plus any additional taxes, penalties and interest, and
any further Excise Taxes imposed upon the Gross-Up Payment, you retain, after payment of all such
taxes and Excise Taxes, an amount of the Gross-Up Payment equal to the Payment that you would have
received if no Excise Taxes had been imposed upon the Payment and no additional taxes, penalties,
and interest or further Excise Taxes had been imposed upon the Gross-Up Payment.

                (b)           Subject to the provisions of Section
6(e) hereof, all determinations required to be made under this Section 6, including whether an Excise
Tax is payable by you and the amount of such Excise Tax and whether a Gross-Up Payment is required
and the amount of such Gross-Up Payment, shall be made by a nationally recognized firm of certified
public accountants (the “Accounting Firm”) selected by you in your sole discretion, other
than the Company’s independent auditing firm, to the extent prohibited by applicable Public
Company Accounting Oversight Board rules. You shall direct the Accounting Firm to submit its determination
and detailed supporting calculations to both the Company and you within thirty (30) calendar days
after the Termination Date. If the Accounting Firm determines that any Excise Tax is payable by you,
the Company shall pay the required Gross-Up Payment to you within five (5) business days after receipt
of the aforesaid determination and calculations. If the Accounting Firm determines that no Excise
Tax is payable by you, it shall, at the same time as it makes such determination, furnish you with
an opinion that you do not owe any Excise Tax on your Federal income tax return. Any determination
by the Accounting Firm as to the amount of the Gross-Up Payment to be paid by the Company within
such thirty (30) calendar day period shall be binding upon the Company and you. As a result of the
uncertainty in the application of Section 4999 (or any successor thereto) of the Code at the
time of the initial determination by the Accounting Firm hereunder, it is possible that Gross-Up
Payments which will not have been made by the Company should have been made (“Underpayment”),
consistent with the calculations required to be made hereunder. In the event that the Company exhausts
its remedies pursuant to Section 6(e) hereof and you thereafter are required to make a payment of
any Excise Tax, you shall direct the Accounting Firm to determine the amount of the Underpayment
that has occurred and to submit its determination and detailed supporting calculations to both the
Company and you as promptly as possible. Any such Underpayment shall be promptly paid by the Company
to or for your benefit within three calendar days after receipt of such determination and calculations.

                (c)           The Company and you shall each
cooperate with the Accounting Firm in connection with the preparation and issuance of the determination
provided for in Section 6(b) hereof. Such cooperation shall include without limitation providing
the Accounting Firm access to



	











	
March 3, 2006

Page 11 of 18

and copies of any books, records and documents in the possession of the Company or you, as the case
may be, that are reasonably requested by the Accounting Firm.

                (d)           The fees and expenses of the Accounting
Firm for its services in connection with the determinations and calculations provided for in Section
6(b) hereof shall initially be paid by you. The Company shall reimburse you for your payment of such
costs and expenses within five (5) business days after receipt from you of a statement therefor
and evidence of your payment thereof.

                (e)           You shall notify the Company in
writing, of any claim by the Internal Revenue Service (the “IRS”) that, if successful,
would require the payment by the Company of a Gross-Up Payment. Such notification shall be given
as soon as practicable but no later than ten (10) business days after you receive notice of such
claim and shall apprise the Company of the nature of such claim and the date on which such claim
is requested to be paid. You shall not pay such claim prior to the earlier of (x) the expiration
of the thirty (30) calendar day period following the date on which you give such notice to the Company
or (y) the date that any payment of taxes with respect to such claim is due. If the Company notifies
you in writing prior to the expiration of such period that it desires to contest such claim, you shall: 

	 


	 	                (i)            give the Company any information
reasonably requested by the Company relating, to such claim;
		 
	 	                (ii)           take such action in connection
with contesting such claim as the Company shall reasonably request in writing, from time to time,
including without limitation accepting legal representation with respect to such claim by an attorney
reasonably selected by the Company;
		 
	 	                (iii)          cooperate with the Company in good
faith in order effectively to contest such claim; and 
		 
	 	                (iv)          permit the Company to participate in
any proceedings relating to such claim;


	 
	
provided, however, that the Company shall bear and pay directly all costs and expenses (including additional
interest and penalties) incurred in connection with such contest and shall indemnify and hold you
harmless, on an after-tax basis, for any Excise Tax or income tax, including interest and penalties
with respect thereto, imposed as a result of such representation and payment of costs and expenses.
Without limitation on the foregoing provisions of this Section 6(e), the Company shall, provided
that such control does not have a material adverse affect on your individual income tax with respect
to matters unrelated to the contest of the Excise Tax, control all proceedings taken in connection
with such contest and, at its sole option, may, provided that such pursuit or foregoing does not
have a material adverse affect on your individual income tax with respect to matters unrelated to
the contest of the Excise Tax, pursue or forego any and all administrative appeals, proceedings,
hearings and conference with the IRS in respect of such claim (but, you may participate therein at
your own cost and expense) and may, at its sole option, provided that such payment, suit, contest
or prosecution does not have a material adverse affect on your individual



	











	
March 3, 2006

Page 12 of 18

income tax with respect to matters unrelated to the contest of the Excise Tax, either direct you to
pay the tax claimed and sue for a refund or contest the claim in any permissible manner, and you
agree to prosecute such contest to a determination before any administrative tribunal, in a court
of initial jurisdiction and in one or more appellate courts, as the Company shall determine; provided,
however, that if the Company directs you to pay the tax claimed and sue for a refund, the Company
shall advance the amount of such payment to you on an interest-free basis and shall indemnify and
hold you harmless, on an after-tax basis, from any Excise Tax or income tax, including interest or
penalties with respect thereto, imposed with respect to such advance or with respect to any imputed
income with respect to such advance; and further provided that any extension of the statute of limitations
relating to payment of taxes for your taxable year with respect to which the contested amount is
claimed to be due is limited solely to such contested amount. Furthermore, the Company’s control
of such contest shall be limited to issues with respect to which a Gross Up Payment would be payable
hereunder, and you shall be entitled to settle or contest, as the case may be, any other issue raised by the IRS.

                (f)            If, after the receipt by
you of an amount advanced by the Company pursuant to Section 6(e) hereof, you receive any refund
with respect to such claim, you shall (subject to the Company’s complying with the requirements
of Section 6(e) hereof) promptly pay to the Company the amount of such refund (together with any
interest paid or credited thereon after any taxes applicable thereto). If, after the receipt by you
of an amount advanced by the Company pursuant to Section 6(e) hereof, a determination is made that
you shall not be entitled to any refund with respect to such claim and the Company does not notify
you in writing of its intent to contest such denial or refund prior to the expiration of thirty (30)
calendar days after such determination, then such advance shall be forgiven and shall not be required
to be repaid and the amount of such advance shall offset, to the extent thereof, the amount of Gross-Up
Payment required to be paid.

                7.             Travel.  You shall be required to travel to the extent necessary for the performance of your responsibilities
under this Agreement.

                8.             Successors; Binding Agreement.  The Company will require any successor (whether direct or indirect, by purchase, merger, consolidation
or otherwise) to all or substantially all the business and/or assets of the Company, to expressly
assume and agree to perform this Agreement in the same manner and to the same extent that the Company
would be required to perform it if no such succession had taken place, and will assign its rights
and obligations hereunder to such successor. Failure of the Company to make such an assignment and
to obtain such assumption and agreement prior to the effectiveness of any such succession, unless
you agree otherwise in writing with the Company or the successor, shall entitle you to compensation
from the Company in the same amount and on the same terms as you would be entitled to hereunder if
you terminate your employment for Good Reason and the date on which any such succession becomes effective
shall be deemed your Date of Termination. As used in this Agreement, “Company” shall mean
the Company as hereinbefore defined and any successor to its business and/or assets as aforesaid
which assumes and agrees to perform this Agreement by operation of law, or otherwise. This Agreement
shall inure to the benefit of and be enforceable by your personal or legal representatives, executors,
administrators, successors, heirs, distributees and/or legatees. This Agreement is personal in nature
and neither of the parties hereto shall, without the consent of



	











	
March 3, 2006

Page 13 of 18

the other, assign, transfer or delegate this Agreement or any rights or obligations hereunder except
as expressly provided in this Section 8. Without limiting the generality of the foregoing, your right
to receive payments hereunder shall not be assignable or transferable, whether by pledge, creation
of a security interest or otherwise, other than by a transfer by your will or by the laws of descent
and distribution and, in the event of any attempted assignment or transfer contrary to this Section
8, the Company shall have no liability to pay to the purported assignee or transferee any amount
so attempted to be assigned or transferred. The Company and you recognize that each party will have
no adequate remedy at law for any material breach by the other of any of the agreements contained
herein and, in the event of any such breach, the Company and you hereby agree and consent that the
other shall be entitled to a decree of specific performance, mandamus or other appropriate remedy
to enforce performance of this Agreement.

                9.             Notices.  For the purpose of this Agreement, notices and all other communications provided for in this
Agreement shall be in writing, and shall be deemed to have been duly given when delivered by hand,
or mailed by United States certified mail, return receipt requested, postage prepaid, or sent by
Federal Express or similar overnight courier service, addressed to the respective addresses set forth
on the first page of this Agreement, or sent by facsimile with confirmation of receipt to the respective
facsimile numbers set forth on the first page of this Agreement, provided that all notices to the
Company shall be directed to the attention of the Secretary of the Company (or, if you are the Secretary
at the time such notice is to be given, to the Chairman of the Company’s Board of Directors),
or to such other address or facsimile number as either party may have furnished to the other in writing
in accordance herewith, except that notice of change of address or facsimile number shall be effective
only upon receipt.

                10.           Noncompetition.

                (a)           Until the Date of Termination,
you agree not to engage in any Competitive Activity. For purposes of this Agreement, the term “Competitive
Activity” shall mean your participation as an employee or consultant, without the written consent
of the CEO or the Board or any authorized committee thereof, in the management of any business enterprise
anywhere in the world if such enterprise engages in competition with any product or service of the
Company (including without limitation any enterprise that is a supplier to an original equipment
automotive vehicle manufacturer) or is planning to engage in such competition. “Competitive
Activity” shall not include the mere ownership of, and exercise of rights appurtenant to, securities
of a publicly-traded company representing 5% or less of the total voting power and 5% or less of
the total value of such an enterprise. You agree that the Company is a global business and that it
is appropriate for this Section 10 to apply to Competitive Activity conducted anywhere in the world.

                (b)           You agree not to engage directly
or indirectly in any Competitive Activity (i) until one (1) year after the Date of Termination if
you are terminated by the Company for Cause, as a result of a Notice of Non-Renewal from the Company,
or you terminate your employment for other than Good Reason, or (ii) until two (2) years after the
Date of Termination in all other circumstances.



	











	
March 3, 2006

Page 14 of 18

                (c)           You shall not directly or indirectly,
either on your own account or with or for anyone else, solicit or attempt to solicit any of
the Company’s customers, solicit or attempt to solicit for any business endeavor or hire
or attempt to hire any employee of the Company, or otherwise divert or attempt to divert from the
Company any business whatsoever or interfere with any business relationship between the Company and
any other person, (i) until one (1) year after the Date of Termination if you are terminated by the
Company for Cause, as a result of a Notice of Non-Renewal from the Company, or you terminate your
employment for other than Good Reason, or (ii) until two (2) years after the Date of Termination
in all other circumstances.

                (d)           You acknowledge and agree that
damages in the event of a breach or threatened breach of the covenants in this Section 10 will be
difficult to determine and will not afford a full and adequate remedy, and therefore agree that the
Company, in addition to seeking actual damages pursuant to Section 10 hereof, may seek specific enforcement
of the covenant not to compete in any court of competent jurisdiction, including, without limitation,
by the issuance of a temporary or permanent injunction, without the necessity of a bond. You and
the Company agree that the provisions of this covenant not to compete are reasonable. However, should
any court or arbitrator determine that any provision of this covenant not to compete is unreasonable,
either in period of time, geographical area, or otherwise, the parties agree that this covenant not
to compete should be interpreted and enforced to the maximum extent which such court or arbitrator
deems reasonable.

                (e)           As
additional compensation for the covenants contained in Sections 10(b) and 10(c), and only if you
execute a general release in form and substance reasonably acceptable to the Company acknowledging,
among other things, your obligations under this Agreement, the Company shall increase the Severance
Period for purposes of Section 5(d) from one (1) year to two (2) years.

                11.           Confidentiality and Cooperation.

                (a)           You shall not knowingly use, disclose
or reveal to any unauthorized person, during or after the Term, any trade secret or other confidential
information relating to the Company or any of its affiliates, or any of their respective businesses
or principals, such as, without limitation, dealers’ or distributor’s lists, information
regarding personnel and manufacturing processes, marketing and sales plans, pricing or cost information,
and all other such information; and you confirm that such information is the exclusive property of
the Company and its affiliates. Upon termination of your employment, you agree to return to the Company
on demand by the Company all memoranda, books, papers, letters and other data, and all copies thereof
or therefrom, in any way relating to the business of the Company and its affiliates, whether made
by you or otherwise in your possession.

                (b)           Any design, engineering methods,
techniques, discoveries, inventions (whether patentable or not), formulae, formulations, technical
and product specifications, bill of materials, equipment descriptions, plans, layouts, drawings,
computer programs, assembly, quality control, installation and operating procedures, operating manuals,
strategic, technical or marketing information, designs, data, secret knowledge, know-how and all
other information of a confidential nature prepared or produced during the period of your employment
and which ideas, processes,



	











	
March 3, 2006

Page 15 of 18

and other materials or information relate to any of the businesses of the Company, shall be owned by
the Company and its affiliates whether or not you should in fact execute an assignment thereof or
other instrument or document which may be reasonably necessary to protect and secure such rights
to the Company.

                (c)           Following the termination of your
employment, you agree to make yourself reasonably available to the Company to respond to periodic
requests for information relating to the Company or your employment which may be within your knowledge.
You further agree to cooperate fully with the Company in connection with any and all existing or
future depositions, litigation, or investigations brought by or against the Company, any entity related
to the Company, or any of its (their) agents, officers, directors or employees, whether administrative,
civil or criminal in nature, in which and to the extent the Company deems your cooperation necessary.
In the event that you are subpoenaed in connection with any litigation or investigation, you will
immediately notify the Company. You shall not receive any additional compensation, other than reimbursement
for reasonable costs and expenses incurred by you, in complying with the terms of this Section 11(c).

                12.           Arbitration.

                (a)           Except as contemplated by Section
10(d) or Section 12(c) hereof, any dispute or controversy arising under or in connection with this
Agreement that cannot be mutually resolved by the parties to this Agreement and their respective
advisors and representatives shall be settled exclusively by arbitration in Southfield, Michigan,
before one arbitrator of exemplary qualifications and stature, who shall be selected jointly by an
individual to be designated by the Company and an individual to be selected by you, or if such two
individuals cannot agree on the selection of the arbitrator, who shall be selected pursuant to the
procedures of the American Arbitration Association.

                (b)           The parties agree to use their
best efforts to cause (i) the two individuals set forth in the preceding Section 12(a), or, if applicable,
the American Arbitration Association, to appoint the arbitrator within thirty (30) days of the date
that a party hereto notifies the other party that a dispute or controversy exists that necessitates
the appointment of an arbitrator, and (ii) any arbitration hearing to be held within thirty (30)
days of the date of selection of the arbitrator, and, as a condition to his or her selection, such
arbitrator must consent to be available for a hearing, at such time.

                (c)           Judgment may be entered on the
arbitrator’s award in any court having jurisdiction, provided that you shall be entitled to
seek specific performance of your right to be paid and to participate in benefit programs during
the pendency of any dispute or controversy arising under or in connection with this Agreement. The
Company and you hereby agree that the arbitrator shall be empowered to enter an equitable decree
mandating specific performance of the terms of this Agreement. If any dispute under this Section
12 shall be pending, you shall continue to receive at a minimum the base salary which you were receiving
immediately prior to the act or omission which forms the basis for the dispute. At the close of the
arbitration, such continued base salary payments may be offset against any damages awarded to you
or may be recovered from you if its



	











	
March 3, 2006

Page 16 of 18

determined that you were not entitled to the continued payment of base salary under the other provisions
of this Agreement.

                13.           Modifications.  No provision of this Agreement may be modified, amended, waived or discharged unless such modification,
amendment, waiver or discharge is agreed to in writing and signed by both you and such officer of
the Company as may be specifically designated by the Board.

                14.           No Implied Waivers.  Failure of either party at any time to require performance by the other party of any provision
hereof shall in no way affect the full right to require such performance at any time thereafter.
Waiver by either party of a breach of any obligation hereunder shall not constitute a waiver of any
succeeding breach of the same obligation. Failure of either party to exercise any of its rights provided
herein shall not constitute a waiver of such right.

                15.           Governing Law.  The validity, interpretation, construction and performance of this Agreement shall be governed
by the laws of the State of Michigan without giving effect to any conflicts of laws rules.

                16.           Payments Net of Taxes.  Except as otherwise provided in Section 6 herein, any payments provided for herein which are
subject to Federal, State local or other governmental tax or other withholding requirements or obligations,
shall have such amounts withheld prior to payment, and the Company shall be considered to have fully
satisfied its obligation hereunder by making such payments to you net of and after deduction for
all applicable withholding obligations.

                17.           Capacity of Parties.  The parties hereto warrant that they have the capacity and authority to execute this Agreement.

                18.           Validity.  The invalidity or unenforceability of any provision of this Agreement shall not, at the option
of the party for whose benefit such provision was intended, affect the validity or enforceability
of any other provision of the Agreement, which shall remain in full force and effect.

                19.           Counterparts.  This Agreement may be executed in several counterparts, each of which shall be deemed to be
an original but all of which together will constitute one and the same instrument.

                20.           Entire Agreement.  This Agreement and any attachments hereto, contain the entire agreement by the parties with
respect to the matters covered herein and supersede any prior agreement (including, but not limited
to, prior employment agreement(s)), condition, practice, custom, usage and obligation with respect
to such matters insofar as any such prior agreement, condition, practice, custom, usage or obligation
might have given rise to any enforceable right. No agreements, understandings or representations,
oral or otherwise, express or implied, with respect to the subject matter hereof have been made by
either party which are not expressly set forth in this Agreement.



	











	
March 3, 2006

Page 17 of 18

                21.           Legal Fees and Expenses.  It is the intent of the Company that you not be required to incur the expenses associated with
the enforcement of your rights under this Agreement by litigation or other legal action because the
cost and expense thereof would substantially detract from the benefits intended to be extended to
you hereunder. Accordingly, the Company shall pay or cause to be paid and be solely responsible for
any and all reasonable attorneys’ and related fees and expenses incurred by you (i) as a result
of the Company’s failure to perform this Agreement or any provision hereof or (ii) as a result
of the Company unreasonably or maliciously contesting the validity or enforceability of this Agreement
or any provision hereof as aforesaid. 

                22.           Code Section 409A. Notwithstanding any provision in this Agreement to the contrary, if your employment is terminated as
described in Section 5(d) and Section 409A(a)(2)(B)(i) of the Code applies to all or any portion
of your Severance Payment and you are a “specified employee” thereunder, then the Company
shall pay the portion of your Severance Payment that is subject to such Section of the Code no earlier
than six (6) months after your Termination Date or such other date as would be permissible under
the Code. If your employment is terminated as described in Section 5(d) and Section 409A(a)(2)(B)(i)
of the Code does not apply to any portion of your Severance Payment or you are not a “specified
employee” thereunder, then the Company shall pay your Severance Payment as described in Section 5(d).

[Signature Page Follows]



	











	
March 3, 2006

Page 18 of 18

                If this letter sets forth our agreement on the subject matter hereof, kindly sign and return to the
Company the enclosed copy of this letter which will then constitute our agreement on this subject,
effective on February 24, 2006 (“Effective Date”).

Sincerely,

LEAR CORPORATION 


	  
	 


	By:	/s/ Roger A. Jackson
	 	

	 	Roger A. Jackson 
	  
	 	 
	Agreed to this 4th day of March, 2006
	  
	 	 
	/s/ Matthew Simoncini
	

	Matthew Simoncini