Document:

plnt-ex1018_223.htm

 

Exhibit 10.18

TRANSITION AND CONSULTING AGREEMENT

 

This Transition and Consulting Agreement (“Agreement”) is made and entered into between Planet Fitness, Inc., Planet Fitness Holdings, LLC and its parents, subsidiaries and affiliates (collectively, “the Company” or “Planet Fitness”) and Richard Moore (“Employee” or “you”) concerning the terms of your separation from the Company.

RECITALS

WHEREAS, Employee was employed by the Company as the Chief Administrative Officer and General Counsel; and

WHEREAS, the Company and Employee desire, and have determined that it is in their mutual best interest, to cease their employment relationship effective as of close of business on November 30, 2017 (“Separation Date”); and

WHEREAS, the Company has agreed to provide certain separation benefits to Employee in exchange for Employee’s tender of his resignation and execution and delivery of a general release of claims as set forth in this Agreement and as previously agreed to in Company’s and Employee’s July 2, 2015 Employment Agreement (“Employment Agreement”) and April 30, 2013 Class M Unit Award Agreement (“Award Agreement”), both of which are incorporated herein by reference; and

WHEREAS, the Company and Employee intend to execute or have executed this Agreement, along with the Employment Agreement and Award Agreement, and agree that in the instance of a conflict, the most restrictive covenants as to Employee will control; 

WHEREAS, Employee has accepted the Company’s offer of separation benefits as set forth in this Agreement and has agreed to tender his resignation and to execute and deliver a general release of claims to the Company, as well as to work in a transitional and consulting capacity.

NOW, THEREFORE, in consideration of the mutual promises and undertakings previously agreed upon in the Employment Agreement and Award Agreement and as set forth herein, the Parties agree as follows:

1.Separation Date and Consideration.  Your employment with the Company will terminate effective November 30, 2017, the Separation Date.  In the event that you choose not to accept this offer, the Company reserves the right to terminate your employment prior to the Separation Date and will not be obligated to make any payments or provide any other benefits to you.  As of the last day of your employment, all salary payments will cease and any benefits you had under Company-provided benefit plans, programs or practices will be terminated, except as required by the Employment Agreement, Award Agreement, and federal or state law and/or as provided in Paragraph 3, below.  Specifically, and pursuant to the Employment Agreement, the Company will provide you:

 

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1.1Your “Base Salary” ($315,000/year) for the final payroll period of your employment, through your Separation Date;

1.2Compensation at the rate of your Base Salary for any vacation time earned but not used as of the Separation Date;

1.3Any annual bonus awarded but not yet paid for the bonus year preceding the year in which your Separation Date occurs; and 

1.4Reimbursement for business expenses incurred by you but not yet paid to you as of the Separation Date, provided you submit all expenses and supporting documentation required within thirty (30) days of the Separation Date, and provided further that such expenses are reimbursable under Company policies.  

As further consideration for this Agreement, the Company and Employee agree as follows:

1.5The Company will pay Employee his Base Salary for the payroll periods extending through and including December 31, 2017;

1.6The Company will modify the stock option agreement granted to Employee dated May 4, 2017 pursuant to the Planet Fitness, Inc. 2015 Omnibus Incentive Plan (the “Grant”) such that the Grant will continue to vest pursuant to Sect. 3(a) thereof (and notwithstanding Sect. 3(c) thereof) as if Employee continued employment with the Company through December 31, 2019 (the “Special Vesting Modification”); and 

1.7Any annual cash bonus awarded but not yet paid for the bonus year 2017.

2.Insurance.  Except as expressly provided in Paragraph 3, below, your participation in all employee benefit plans of the Company will end as of the Separation Date, in accordance with the terms of those plans.  If you are currently covered by the Company’s group health insurance plans, you will be eligible to elect to continue your group medical and dental coverage at your own expense for a period of up to 18 months subject to the terms of the Consolidated Omnibus Budget Reconciliation Act (“COBRA”).  You may elect COBRA coverage for as long as you are eligible to do so.  If you have participated in the Health Care Flexible Spending Account program, you will have until the end of the current year to submit for reimbursement any qualifying expenses incurred prior to the Separation Date.  However, you will not continue to earn vacation or other similar benefits after the Separation Date.  

3.Consulting Arrangement.  From December 1, 2017 through December 31, 2018, the Company will retain your services as a consultant to assist with the transition of your position (“Consulting Arrangement”).  The terms of the Consulting Arrangement are as follows:

3.1You shall provide to the Company the services set forth in this Section 3.1 (the “Services”): 

3.1.1From December 1, 2017 through December 31, 2018, you will not be required to travel to Planet Fitness Headquarters more than three times per week, but you agree 

 

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to be available by phone and email as needed on a reasonable basis, and to provide support to the Legal Department and Executive Team as requested.  You will respond to all requests for assistance in a timely manner.  During this time, you will be available for weekly calls.  You further agree to perform the Services to the best of your ability.

3.1.2The Company shall not control the manner or means by which you perform the Services, but the Company shall remain responsible for all final decisions pertaining to Company matters.

3.2The Company shall pay you a fixed amount of $26,250.00 per month (the “Consulting Fee”) to compensate you for providing the Services.  As further consideration for the Services, if Employee timely elects continued coverage under COBRA, the Company shall provide Employee with an amount equal to the Employee’s COBRA premiums necessary to continue Employee’s coverage (including coverage for eligible dependents, if applicable) under COBRA (“COBRA Coverage Payment”).  While enrolled in COBRA, Employee shall have the same rights to add newly-acquired dependents to the Company’s group health plan as similarly situated employees.  Employee agrees to notify the Company if he becomes eligible for other group health insurance coverage from another source, and should that occur, the Company will no longer be obligated to provide COBRA Coverage Payments to the Employee or COBRA Coverage to the Employee and the Employee’s dependents and spouse who also obtain other group health insurance coverage from another source.  The Consulting Fee and COBRA Coverage Payment will be paid via the Company’s regular payroll cycle, which is currently bi-weekly. 

3.3You will be an independent contractor of the Company, and this Agreement shall not be construed to create any association, partnership, joint venture, employee, or agency relationship between you and the Company for any purpose during the Consulting Arrangement.  You will have no authority (and shall not hold yourself out as having authority) to bind the Company and you shall not make any agreements or representations on the Company's behalf without the Company's prior written consent.  You acknowledge that you will receive an IRS Form 1099-MISC from the Company for the duration of the Consulting Arrangement.

3.4Without limiting Section 3.3, you will not be eligible to participate in any vacation, group medical or life insurance, disability, profit sharing or retirement benefits, or any other fringe benefits or benefit plans offered by the Company to its employees, and the Company will not be responsible for withholding or paying any income, payroll, Social Security, or other federal, state, or local taxes, making any insurance contributions, including for unemployment or disability, or obtaining worker's compensation insurance on your behalf.  You shall be responsible for, and shall indemnify the Company against, all such taxes or contributions, including penalties and interest.  Any persons employed or engaged by you in connection with the performance of the Services shall be your employees or contractors and you shall be fully responsible for them and indemnify the Company against any claims made by or on behalf of any such employee or contractor.

3.5Upon prior written approval from the Company’s General Counsel, you are free to accept engagements from others during the Consulting Arrangement, so long as those engagements do not prevent you from performing the Services or otherwise violate any obligations 

 

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under this Agreement, the Employment Agreement, or the Award Agreement, including the non-competition and non-solicitation provisions.

3.6You are solely responsible for any travel or other costs or expenses incurred by you in connection with the performance of the Services, and in no event shall the Company reimburse you for any such costs or expenses unless the Company requires that you travel outside of New England and you have obtained preapproval for the costs and expenses.

3.7The Restricted Activities and Restrictive Covenants contained in Paragraph 3 of the Employment Agreement and Attachment C to the Award Agreement pertaining to Confidential Information, Documents, Intellectual Property, Restricted Activities (including the non-competition and non-solicitation restrictions) shall remain in full force and effect during the term of the Consulting Arrangement and shall survive the Consulting Arrangement pursuant to the terms of the Employment Agreement and the Award Agreement.  Employee specifically agrees and acknowledges that in the event of a conflict between the Employment Agreement and Award Agreement, the most restrictive covenant as to Employee controls, and specifically, that Employee is subject to a two year non-competition restriction as outlined in the Employment Agreement.

3.8Termination. 

 

3.8.1You may terminate the Consulting Arrangement upon fourteen (14) days’ written notice to Company.  The Company may terminate the Consulting Arrangement for Cause upon fourteen (14) days’ written notice to you.  “Cause” is determined by the Company at the its sole discretion and includes, but is not limited to (a) conduct by you that is detrimental to the Company or Brand (including, without limitation: a determination by the Company that the Consulting Arrangement and/or any action or omission by you may result in a material detriment to the value or image of the “Planet Fitness” brand or an individual Planet Fitness store; your violation of the Code of Conduct of the Company or its subsidiaries); (b) activities that represent a conflict of interest as to, or competition with, the Company (including, without limitation: your acceptance of work (whether as an employee, consultant or otherwise) that lessens the value or availability of your furnishing of the Services; your violation of any statutory or common law duty of loyalty to the Company or its subsidiaries); (c) failure to adequately and competently perform the Services (including, without limitation: your failure to provide the Services to the best of your ability; any dishonesty, theft, fraud, incompetence, or other misconduct; causing disruption to the Company’s work or workplace); and (d) any other breach of this Agreement, the Employment Agreement, or the Award Agreement that is not covered by Paragraph 3.8.3.  In the event of termination by you pursuant to this clause, the Company shall pay you on a pro-rata basis any Consulting Fees then due and payable for any Services completed up to and including the date of such termination and will cease providing COBRA Coverage Payments two weeks after such termination.  The remaining COBRA Coverage Payment will be paid no later than the Company’s next regularly scheduled payroll cycle.  The Special Vesting Modification shall end upon the date of such termination.   

 

3.8.2The Consulting Arrangement, to include payment of Consulting Fees and COBRA Coverage, and the Special Vesting Modification, may be immediately terminated by the Company, at the Company’s sole discretion, by written notice to you if you 

 

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become a Company franchisee or if you enter into any relationship with a Company franchisee or vendor (including, without limitation, that of employee, independent contractor, or consultant).  In the event of termination by you pursuant to this clause, the Consulting Fees, COBRA Coverage Payment, and Special Vesting Modification will be handled as outlined in Paragraph 3.8.1.

3.8.3You or the Company may terminate this Agreement, effective immediately upon written notice to the other party to this Agreement, if the other party materially breaches this Agreement, and such breach is incapable of cure, or with respect to a material breach capable of cure, the other party does not cure such breach within ten (10) days after receipt of written notice of such breach.  

3.8.4Upon expiration or termination of the Consulting Arrangement for any reason, or at any other time upon the Company’s written request, you shall within five (5) days after such expiration or termination:

(a)deliver to the Company all deliverables (whether complete or incomplete) and all hardware, software, tools, equipment, or other materials provided for your use by the Company;

(b)deliver to the Company all tangible documents and materials (and any copies) containing, reflecting, incorporating, or based on the Confidential Information (defined in Attachment C to the Award Agreement);

(c)permanently erase all of the Confidential Information from your computer systems; and

(d)certify in writing to the Company that you have complied with the requirements of this clause.

3.9Property, Expenses. You warrant that: (i) by the close of business on December 30, 2017, you will have submitted all legitimate requests for reimbursement of business expenses, and (ii) by the close of business on December 31, 2018, you will return all Company property and data that has been in your possession or control including but not limited to the Company credit card, Company issued equipment (including, but not limited, to, the laptop, iPad, and printer), computer recorded information, tangible property, entry cards, keys and cell phone, and that if you have used any non-Company computer, server, or e-mail system to receive, store, review, prepare or transmit any Company confidential or proprietary data, materials or information, you agree to provide the Company with a computer-useable copy of such information and then permanently delete and expunge such Company confidential or proprietary information from those systems and you will provide the Company with access to such systems as requested to verify that the necessary copying and/or deletion is completed. The Company will reimburse you in accordance with Company policies.

4.Releases.  In accordance with paragraph 2(a)(iii) of the Award Agreement, you hereby agree to the following Release:

 

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4.1To the fullest extent permitted by law, you, on behalf of yourself and your successors-in-interest, heirs, executors, agents, trustees, affiliates, servants, representatives, transferees, successors and assigns, hereby release and forever discharge the Company, its parents, subsidiaries and affiliates and all of their respective past, present and/or future predecessors, successors, agents, officers, directors, employees, parent companies, shareholders, employee benefit plans, administrators, trustees, attorneys and representatives, and all others connected with any of them, both individually and in their official capacities (“Releasees”), from and against any and all claims, demands, obligations, liabilities, costs, expenses, fees (including without limitation attorneys' fees), actions, causes of action, rights, promises, judgments, losses, liens and damages of every kind, combination or description, in law or at equity, which you have against the Releasees or have ever had, whether known or unknown, anticipated or unanticipated, liquidated or unliquidated, fixed, conditional or contingent, concerning, relating to, or arising out of any alleged acts or omissions by any of the Releasees from the beginning of time to the date on which you execute this Agreement, including, without limitation, all claims arising under any act, statute, constitution, regulation, executive order, ordinance, or the common law. Without limiting the generality of the foregoing, the claims released by you hereunder include, but are not limited to claims under any employment laws, including, but not limited to, claims of unlawful discharge, retaliation, breach of contract, breach of the covenant of good faith and fair dealing, fraud, violation of public policy, defamation, physical injury, emotional distress, claims for additional compensation or benefits arising out of your employment or your separation of employment, claims under Title VII of the Civil Rights Act of 1964, as amended, the Family and Medical Leave Act, the Employee Retirement Income Security Act, the New Hampshire Law Against Discrimination and any other federal, state or local laws and/or regulations relating to employment, leaves of absence from employment, or employment discrimination, including, without limitation, claims based on age or under the Age Discrimination in Employment Act of 1967 (“ADEA”) or Older Workers Benefit Protection Act, and/or claims based on disability or under the Americans with Disabilities Act. This release also includes claims arising under the Sarbanes-Oxley Act of 2002, 18 U.S.C. §1514; Sections 748(h)(i), 922(h)(i), and 1057 of the Dodd-Frank Wall Street and Consumer Protection Act (the “Dodd Frank Act”), 7 U.S.C. §26(h), 15 U.S.C. §78u-6(h)(i) and 12 U.S.C. §5567(a), but this Agreement does not release any right you may have to receive a monetary award from the Securities and Exchange Commission (the “SEC”) as an SEC Whistleblower, pursuant to the bounty provision under Section 922(a)-(g) of the Dodd Frank Act, 7 U.S.C. Sec. 26(a)-(g), or directly from any other federal or state agency pursuant to a similar program. You recognize and agree that this is a general release, waiving and releasing claims to the fullest extent permitted under the law. You also knowingly and intentionally waive any rights to any additional recovery that might be sought on your behalf against the Releasees by any other person, entity, local, state or federal government or agency thereof, including specifically and without limitation, the state and federal Departments of Labor. The parties intend that the claims released herein be construed as broadly as possible.

4.2You and the Company do not intend to release claims that you may not release as a matter of law.

4.3Notwithstanding the foregoing, nothing in this Agreement prohibits you from reporting possible violations of federal law or regulation to any governmental agency or entity including but not limited to the Department of Justice, the Securities and Exchange Commission, 

 

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Congress, and any Inspector General, or making other disclosures that are protected under the whistleblower provisions of federal law or regulation.  You do not need the prior authorization of the Company to make any such reports or disclosures and you are not required to notify the Company that you have made such reports or disclosures.

4.4Nothing in this Agreement shall be construed to prohibit you from filing a charge or complaint with a government agency such as but not limited to the Equal Employment Opportunity Commission, the National Labor Relations Board, the Department of Labor, or other applicable state or local agency or from participating in any way with any investigation or proceeding conducted by any such agency.  However, you understand and agree that, by entering into this Agreement, you are releasing your right to recover monetary damages or other individual relief in any charge, complaint or lawsuit filed by you or by anyone else on your behalf.

4.5You acknowledge that in accordance with paragraph 2(a)(iii) of your Award Agreement, your retention of the vested portion of the Class M Units awarded to you pursuant to the Award Agreement is contingent on you signing this Agreement.

5.Employee’s Representations.  You understand and agree that any and all of your obligations to the Company regarding confidentiality, non-solicitation, non-disparagement, and non-competition to which you previously agreed continue following the Separation Date and are not impacted by this Agreement, and the instance of a conflict between this Agreement, the Employment Agreement and the Award Agreement, the more restrictive covenant applies.  Specifically, you hereby represent and warrant to the Company, with full knowledge that the Company intends to rely on these representations, the following:

5.1Confidential Information. As an employee of and attorney for the Company, you had access to and may be in possession of non-public information about the Company, its affiliates and parent, and the Company’s business plans, products, employees and strategies.  Subject to Section 5.6 below, you shall not disclose such confidential information directly or indirectly to any person or entity outside of the Company.  Additionally, you will continue to abide by the terms of any agreement regarding confidentiality or non-competition you signed previously with the Company, including the Employment Agreement and Award Agreement.

5.2Non-solicitation of Employees.  Pursuant to the Employment Agreement and Award Agreement, you agree that you are subject to a non-solicitation agreement between you and the Company, and those provisions remain in full force and effect.

5.3Non-compete. Pursuant to the Employment Agreement, you agree that you are subject to a two (2) year non-competition agreement between you and the Company, which remains in full force and effect. 

5.4Non-disparagement. Subject to Section 5.6 below, you agree that you shall not, directly or indirectly, by any manner or means, in public or in private, disparage orally or in writing the Releasees, or the Company or its affiliates’ business, management, products or services, and that you will not otherwise do or say anything that could disrupt the good morale of employees of the Company or any of its affiliates or harm the interests or reputation of the Company or any of its affiliates.  Similarly, the Company’s Section 16 Officers and Board of Directors agree that they 

 

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will not, directly or indirectly, by any manner or means, in private or in public, disparage you orally or in writing, or otherwise do or say anything that could harm your interests or reputation, and the Company will notify its Section 16 Officers and Board of Directors of this obligation.  Nothing in this paragraph shall prohibit either Company representatives or Employee from providing truthful information in response to a legal proceeding or media report or inquiry.

5.5You acknowledge that from and after the Separation Date, you shall have no authority to represent yourself as an employee or agent of the Company, and you agree not to represent yourself thereafter as an employee or agent of the Company.

5.6Nothing in this Agreement limits, restricts or in any other way affects your communicating with any governmental agency or entity, or communicating with any official or staff person of a governmental agency, concerning matters relevant to the governmental agency or entity.  In addition, an action that would otherwise count as trade secret misappropriation will be immunized if the disclosure (a) is made (i) in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney; and (ii) solely for the purpose of reporting or investigating a suspected violation of law; or (b) is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal.

5.7Cooperation with Litigation.  During and for two years following the termination of Employee’s Consulting Arrangement (regardless of the reason for Employee’s termination), Employee agrees to cooperate with the Company and make himself readily available to the Company, the Company’s Legal Department, and the Company’s outside counsel, or any of its advisers, as the Company may reasonably request, to assist it in any matter regarding the Company and its parent, affiliates and franchisees, including giving truthful testimony in any litigation, potential litigation or any internal investigation or administrative, regulatory, judicial or quasi-judicial proceedings involving the Company over which Employee has knowledge, experience or information.  Employee acknowledges that this could involve, but is not limited to, responding to or defending any regulatory or legal process, providing information in relation to any such process, preparing witness statements, and preparing for and giving evidence in person on behalf of the Company.  This responsibility and agreement is considered a critical component of the Services.  Further, upon expiration of the Consulting Arrangement, Employee agrees to continue his Cooperation with Litigation, and for the two years following expiration of the Consulting Arrangement, the Company shall reimburse Employee a reasonable hourly rate for his time (not to exceed $150/hour) and any reasonable expenses incurred by Employee as a consequence of complying with obligations under this clause, provided that such expenses are approved in advance by the Company.

6.No Admission of Liability.  This Agreement is not and shall not be construed or contended by you to be an admission or evidence of any wrongdoing or liability on the part of Releasees, their representatives, heirs, executors, attorneys, agents, partners, officers, shareholders, directors, employees, subsidiaries, parents, affiliates, divisions, successors or assigns.  This Agreement shall be afforded the maximum protection allowable under any state or federal provisions regarding such admissibility.

 

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7.Limited Indemnification.  The Company agrees that if Employee is made a party or is threatened to be made a party, or is required to appear as a witness to any action, suit or proceeding, whether civil, criminal, administrative or investigative (a “Proceeding”), by reason of the fact that he is or was a director or officer of the Company, if such action is alleged in the Employee’s official capacity as a director, officer, employee or agent while serving as a director, officer, employee or agent, he shall be indemnified and held harmless by the Company to the fullest extent authorized by law and the Company’s bylaws, as the same exists or may hereafter be amended, against all costs and expenses incurred or suffered by Employee in connection therewith (unless Employee engaged in actions or omissions that constitute gross negligence, willful misconduct, misfeasance, malfeasance, or illegal conduct in which case indemnification will be unavailable and void).  Such indemnification (and the stated limitations on same) shall continue as to Employee even if Employee has ceased to be an officer, director or agent, or is no longer employed by the Company.  Employee agrees to fully cooperate with the Company should any Proceeding commence.

8.Waiver and Invalidity. The failure of any party to enforce at any time any of the provisions of this Agreement shall in no way be construed as a waiver of any such provision, nor in any way affect the validity of this Agreement or any part thereof or the right of any party thereafter to enforce each and every such provision.  No waiver of any breach of this Agreement shall be held to be a waiver of any other or subsequent breach.  The parties agree that the provisions of this Agreement shall be deemed severable and that the invalidity or unenforceability of any portion or any provision shall not affect the validity or enforceability of the other portions or provisions.  Such provisions shall be appropriately limited and given effect to the extent that they may be enforceable.

9.Remedies for Breach by Employee.  You understand and agree that the Company’s obligation to perform under this Agreement is conditioned upon your covenant and promise to the Company as set forth in this Agreement, the Employment Agreement, and the Award Agreement.  In the event you breach any such covenants and promises, or cause any such covenants or promises to be breached, you acknowledge and agree that the Company may suspend performance under this Agreement and/or seek all legal remedies including injunctive relief to enforce the provisions of this Agreement.  Should the Company prevail in any litigation associated with your breach of this Agreement, your Employment Agreement, or your Award Agreement, the Company will be entitled to reimbursement of its attorneys’ fees and costs incurred in pursuing/defending same.

10.Governing Law. This Agreement shall be governed by and construed in accordance with the laws of New Hampshire without regard to its conflict of laws principles.

11.Successors, Assigns, and Representatives. This Agreement shall inure to and be binding upon the parties hereto, their respective heirs, legal representatives, successors, and assigns.

12.Entire Agreement. This Agreement constitutes the entire agreement between you and Releasees with respect to the subject matter hereof and, unless specifically noted in Section 6 of this Agreement, supersedes all prior negotiations and agreements, whether written or oral, relating to such subject matter. You acknowledge that neither Releasees nor their agents or attorneys have made 

 

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any promise, representation or warranty whatsoever, either express or implied, written or oral, which is not contained in this Agreement for the purpose of inducing you to execute the Agreement, and you acknowledge that you have voluntarily executed this Agreement in reliance only upon such promises, representations and warranties as are contained herein.  This Agreement may only be modified in a writing signed by the parties.

13.Review of Separation Agreement/Knowing and Voluntary Execution.  Employee acknowledges and agrees that:

(a)the only consideration for his execution of this Agreement is that which is stated herein, and there are no promises or agreement of any other kind which have caused him to execute this Agreement;

(b)he has not relied on statements or representations by the Released Parties, their agents or representatives, concerning the matters addressed in this Agreement;

(c)he has carefully read and fully understands the provisions, meaning and intent of this Agreement, including but not limited to its release and waiver of claims and its final and binding effect;

(d)he has been given 21 days within which to consider this Agreement, he may sign this Agreement in less than 21 days but it not required by the Company to do so, and understands that if the Agreement is not executed within those 21 days, it will be void;

(e)if there have been any changes to a prior version of this Agreement (material or immaterial), the 21-day consideration period will not be reset;

(f)he has been advised in writing to consult with an attorney prior to executing this Agreement; and

(g)he knowingly and voluntarily enters into this Agreement.

14.Revocation Period and Effective Date.  For seven (7) days following his execution of this Agreement (the “Revocation Period”), Employee may revoke the Agreement and the Agreement shall not become effective or enforceable until the Revocation Period has expired.  This Agreement shall not become effective until the 8th day after signature by Employee (“Effective Date”).

15.Waiver of Jury Trial.  The Company and Employee hereby waive their rights to a jury trial of any claim or cause of action based upon or rising out of this Agreement.  This waiver is irrevocable, meaning that it may not be modified either orally or in writing, and the waiver shall apply to any subsequent amendments, renewals, supplements or modifications to this agreement.  In the event of litigation, this Agreement may be filed as a written consent to a trial by the Court.

 

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If you agree to the terms of this Agreement, please sign below and return it to Justin Vartanian, 4 Liberty Lane West, Hampton, NH 03842.

Sincerely,

Planet Fitness, Inc.

 

By: /s/ Christopher J. Rondeau

Christopher J. Rondeau

Chief Executive Officer

By signing this Agreement, I represent and warrant that I agree to all provisions contained in this Agreement and hereby execute it voluntarily and with full understanding of its terms.

 

Signed: /s/ Richard MooreDate: 11/30/17

 Richard Moore

 

 

 

WSACTIVELLP:9483770.1 

 

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 Exhibit 10.1 

Execution Copy 
 SECOND
AMENDED AND RESTATED EMPLOYMENT AGREEMENT 
 THIS SECOND AMENDED AND RESTATED EMPLOYMENT AGREEMENT (this
“Agreement”) is dated as of March 1, 2018, between Lear Corporation, a Delaware corporation (the “Company”) and Frank C. Orsini (“Executive”). 

WHEREAS, the Company has employed Executive in various senior officer positions, most recently as Senior Vice President and President, E-Systems of the Company; 
 WHEREAS, the Executive has been appointed to the position of Executive Vice
President and President, Seating of the Company, effective March 1, 2018 (the “Effective Date”); 
 WHEREAS, the
Company and Executive are currently parties to an existing employment agreement, dated September 12, 2012 (the “Existing Agreement”), which will expire by its terms upon the effectiveness of this Agreement; 

WHEREAS, the Company desires to have the benefit of Executive’s continued service and the restrictive covenants contained herein; and

 WHEREAS, in recognition of Executive’s promotion to the position of Executive Vice President and President, Seating of the Company,
the parties desire to enter into a new employment agreement reflecting the terms of Executive’s continuing employment. 
 NOW,
THEREFORE, in consideration of the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound, the parties hereby agree as follows:

 1.    Term of Agreement. This Agreement shall commence on and as of the Effective Date and continue until Executive’s
employment has terminated and the obligations of the parties hereunder have terminated or expired or have been satisfied in accordance with their terms, or if earlier, upon the execution of a new employment agreement by the parties hereto (the
“Term”). The Existing Agreement shall hereby terminate as of the Effective Date, and the terms of this Agreement thereupon shall supersede the terms of the Existing Agreement in their entirety. 

2.    Terms of Employment. During the Term, Executive agrees to be a full-time employee of the Company serving in the position of
Executive Vice President and President, Seating of the Company. Executive agrees to devote substantially all of his working time and attention to the business and affairs of the Company, to discharge the responsibilities associated with his position
with the Company, and to use his best efforts to perform faithfully and efficiently such responsibilities. Nothing herein shall prohibit Executive from devoting his 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 Executive’s duties hereunder or violate the terms of the Company’s
Code of Business Conduct and Ethics, 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 Executive’s services under this Agreement, Executive shall be entitled during the Term to
receive an initial base salary the annualized amount of which shall be $770,000, to be paid in accordance with existing payroll practices for executives of the Company. Increases in Executive’s base salary, if any, shall be as approved by the
Compensation Committee of the Board of Directors of the Company (the “Board”). In addition, Executive shall be eligible to receive an annual incentive compensation bonus (“Bonus”) and awards under the Company’s
Long-Term Stock Incentive Plan or successor plan (the “LTSIP”), each to be approved from time to time by the Compensation Committee of the Board. 

(b)    During the Term, Executive shall be eligible for participation in the welfare, retirement, 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, Executive shall be eligible for prompt reimbursement for business expenses reasonably incurred by
Executive 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. The employment relationship may be terminated by the Company with or without Cause or for
Incapacity, or by Executive 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 Executive’s employment under the provision so indicated. All notices under this
Section 4(a) shall be given in accordance with the requirements of Section 8. 
 (b)    Incapacity. If
the Company reasonably determines that Executive is unable at any time to perform the duties of Executive’s position because of a serious illness, injury, impairment, or physical or mental condition and Executive is not eligible for or has
exhausted all leave to which Executive 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 Executive’s employment for
“Incapacity”. In addition, at any time that Executive is on a leave of absence, the Company may temporarily reassign the duties of Executive’s position to one or more other executives without creating a basis for Executive’s Good
Reason resignation, provided that the Company restores such duties to Executive upon Executive’s return to work. 

  
 2 

 (c)    Cause. Termination of Executive’s employment for
“Cause” shall mean termination upon: 
 (i)    an act of fraud, embezzlement or theft by Executive in
connection with Executive’s duties or in the course of Executive’s employment with the Company; 

(ii)    Executive’s material breach of any provision of this Agreement, provided that in those instances in which
Executive’s material breach is capable of being cured, Executive has 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 Executive’s base salary or adverse
change in the manner of computing Executive’s incentive compensation opportunity, as in effect from time to time; 

(ii)    the failure by the Company to pay or provide to Executive any amounts of base salary or earned incentive
compensation or any benefits which are due, owing and payable to Executive, or to pay to Executive any portion of an installment of deferred compensation due under any deferred compensation program of the Company; 

(iii)    the failure by the Company to continue to provide Executive with benefits substantially similar in the
aggregate to the Company’s life insurance, medical, dental, health, accident or disability plans in which Executive is participating at the date of this Agreement; 

(iv)    except on a temporary basis as described in Section 4(b), a material adverse change in Executive’s
responsibilities, position, reporting relationships, authority or duties. For purposes of clarification, Executive agrees that it will not be a material adverse change for the Company to reassign Executive to a position with at least substantially
similar responsibilities and authority; 
 (v)    the transfer of Executive’s principal place of employment to a
location fifty (50) or more miles from its location immediately preceding the transfer; or 

  
 3 

 (vi)    without limiting the generality or effect of the foregoing, any
material breach of this Agreement by the Company. 
 Notwithstanding anything else herein, Good Reason shall not exist if, with regard to
the circumstances or events relied upon in Executive’s Notice of Termination: (x) Executive failed to provide a Notice of Termination to the Company within sixty (60) days of the date Executive 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) Executive gives Executive’s express written consent to the circumstances or events. 

(e)    Date of Termination. “Date of Termination” shall mean: 

(i)    if Executive’s employment is terminated by reason of Executive’s death, the date of Executive’s
death; 
 (ii)    if Executive’s employment is terminated by the Company for any reason other than because of
Executive’s death, the date specified in the Notice of Termination (which shall not be prior to the date of the notice); 

(iii)    if Executive’s employment is terminated by Executive 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 Executive not to do so, Executive shall continue to perform services as provided in this Agreement through the
Date of Termination. 
 (f)    Employee Benefits. A termination by the Company pursuant to Section 4(c)
hereof or by Executive pursuant to Section 4(d) hereof shall not affect any rights which Executive 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 Executive shall have received or shall be receiving benefits under Section 5(b) hereof, Executive shall not be entitled to receive benefits under any other policy,
plan, program or arrangement of the Company providing severance compensation to which Executive would otherwise be entitled. 

5.    Compensation Upon Termination. Upon Executive’s termination of employment, Executive shall receive: 

(a)    If Executive’s employment shall be terminated by the Company for Incapacity or for Cause, by Executive without
Good Reason, or upon Executive’s death, the Company shall pay to Executive (or, in the event of Executive’s death, to Executive’s beneficiary or estate), when the same would otherwise have been due, the base salary and any other
accrued amounts then payable through the Date of Termination and shall have no further obligations under this Agreement, other than as set forth in Section 5(c) hereof, as applicable. 

  
 4 

 (b)    If Executive’s employment shall be terminated (a) by the
Company, except for a termination by the Company for Cause or Incapacity (or due to Executive’s death), or (b) by Executive for Good Reason, then Executive shall be entitled to the benefits provided below, in addition to the benefits
provided in Section 5(c) hereof, as applicable: 
 (i)    The Company shall pay Executive Executive’s 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 Executive is entitled under any compensation or benefit plans of the Company, including, without limitation, any accrued amounts under any retention or incentive plan, and including incentive compensation prorated for any applicable
measurement period occurring prior to the Date of Termination, at the time such payments are due, except as otherwise provided below. 

(ii)    an amount (the “Severance Payment”) equal to two (2) times the sum of: 

(A)    the greater of (I) Executive’s annual base salary rate in effect as of the Effective Date or
(II) Executive’s annual base salary rate in effect as of the Date of Termination; and 
 (B)    the greater
of (I) Executive’s annual incentive Bonus target amount in effect as of the Effective Date or (II) Executive’s annual incentive Bonus target amount in effect as of the Date of Termination. 

The Severance Payment will be paid in a lump sum as soon as practicable following the Date of Termination. 

(iii)    The Company shall arrange to provide to Executive, Executive’s 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 Executive is no
longer an officer or employee of the Company 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 Executive,
Executive’s dependents and beneficiaries. Without otherwise limiting the purposes or effect of the no mitigation obligation in Section 5(f) hereof, Welfare Benefits payable to Executive (including Executive’s dependents and
beneficiaries) pursuant to this Section 5(b)(iii) shall be reduced to the extent comparable welfare benefits are actually received by Executive (including Executive’s dependents and beneficiaries) from another employer during such period,
and any such benefits actually received by Executive shall be reported by Executive to the Company. 

  
 5 

 Executive’s right to receive the Severance Payment and Welfare Benefits under this
Section 5(b) (collectively, the “Severance Benefits”) is conditioned upon the Executive’s execution of a general release agreement (a “Release”) in form and substance reasonably acceptable to the Company
in connection with Executive’s termination of employment. Such Severance Benefits shall be payable only if Executive executes and delivers a Release (and any revocation period expires) no later than forty-five (45) calendar days after the
Executive’s termination of employment. Such amounts shall not become payable until forty-five (45) calendar days after the termination of employment, regardless of when the Release is returned to the Company. 

(c)    If Executive’s employment shall be terminated by the Company for Incapacity or for any reason other than
Cause, by Executive for Good Reason, or upon Executive’s death, (i) any unvested awards under the LTSIP held by Executive that vest based on the passage of time shall immediately vest in their entirety upon such termination, and
(ii) with respect to unvested awards under the LTSIP held by Executive that vest based on the achievement of performance criteria, Executive shall be entitled to receive a pro rata portion (based on the number of full calendar months in the
performance period prior to such termination) of the amount Executive would have been entitled to receive under such awards (and at the same time) had he remained employed until the last day of the applicable performance period. 

(d)    The Company may not set-off or counterclaim losses, fines or damages in
respect of any claim, debt or obligation against any payment to or benefit for Executive provided for in this Agreement. 

(e)    Without limiting Executive’s 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. 

(f)    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 Executive in accordance with the terms
of this Agreement shall be liquidated damages and that Executive 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 Executive hereunder or otherwise, except as expressly provided in this Section 5. 

  
 6 

 6.    Travel. Executive shall be required to travel to the extent reasonably necessary
for the performance of Executive’s responsibilities under this Agreement. 
 7.    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 Executive agrees otherwise in writing with the Company or the successor, shall entitle Executive to compensation from the Company in the same amount
and on the same terms as Executive would be entitled to hereunder if Executive terminates Executive’s employment for Good Reason and the date on which any such succession becomes effective shall be deemed Executive’s 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 Executive’s 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 the other, assign, transfer or delegate this Agreement or any rights or obligations hereunder except as expressly provided in this Section 7. Without limiting the generality of the foregoing,
Executive’s 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 Executive’s will or by the laws of descent and
distribution and, in the event of any attempted assignment or transfer contrary to this Section 7, 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 Executive 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 Executive 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. 

8.    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 signature page of this Agreement, or sent by facsimile with confirmation of receipt to the respective facsimile numbers set forth on the signature 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 Executive is 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. 

  
 7 

 9.    Noncompetition. 

(a)    From the Effective Date until the Date of Termination, Executive agrees not to engage in any Competitive Activity.
For purposes of this Agreement, the term “Competitive Activity” shall mean Executive’s participation as an employee or consultant, without the written consent of the Board or any authorized committee thereof, in the management of any
business enterprise anywhere in the world if such enterprise is a “Significant Customer” of any product or service of the Company or 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. For purposes of this Agreement, the term “Significant Customer” shall mean any customer who represents in
excess of 5% of the Company’s sales in any of the three calendar years prior to the date of determination. “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. Executive agrees that the Company is a global business and that it is appropriate for this Section 9 to apply to
Competitive Activity conducted anywhere in the world. 
 (b)    Executive agrees not to engage directly or indirectly in
any Competitive Activity (i) until one (1) year after the Date of Termination if Executive is terminated by the Company for Cause, or Executive terminates Executive’s employment for other than Good Reason, or (ii) until two
(2) years after the Date of Termination in all other circumstances. 
 (c)    Executive shall not directly or
indirectly, either on Executive’s 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
Executive is terminated by the Company for Cause, or Executive terminates Executive’s employment for other than Good Reason, or (ii) until two (2) years after the Date of Termination in all other circumstances. 

(d)    Executive acknowledges and agrees that damages in the event of a breach or threatened breach of the covenants in
this Section 9 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 9 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. Executive 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. 

  
 8 

 10.    Confidentiality and Cooperation. 

(a)    Executive shall not knowingly use, disclose or reveal to any unauthorized person, at any time after the Effective
Date, 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 Executive confirms that such information is the exclusive property of the Company and its affiliates. Upon
termination of Executive’s employment, Executive agrees 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 Executive or otherwise in Executive’s 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 Executive’s employment and which ideas, processes, 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 Executive 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 Executive’s employment, Executive agrees to make himself reasonably available to
the Company to respond to periodic requests for information relating to the Company or Executive’s employment which may be within Executive’s knowledge. Executive further agrees 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 Executive’s cooperation necessary. In the event that Executive is subpoenaed in connection with any litigation or investigation, Executive will immediately notify the Company. Executive shall
not receive any additional compensation, other than reimbursement for reasonable costs and expenses incurred by Executive, in complying with the terms of this Section 10(c). 

(d)    For the avoidance of doubt, this Section 10 does not prohibit or restrict Executive (or Executive’s
attorney) from responding to any inquiry about this Agreement or its underlying facts and circumstances by the Securities and Exchange Commission, the Financial Industry Regulatory Authority, any other self-regulatory organization or

  
 9 

 
governmental entity, or making other disclosures that are protected under the whistleblower provisions of federal law or regulation. Executive understands and acknowledges that he does not need
the prior authorization of the Company to make any such reports or disclosures and that he is not required to notify the Company that he has made such reports or disclosures. 

11.    Arbitration. 

(a)    Except as contemplated by Section 9(d) or Section 11(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 Executive, 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, and such arbitration shall be conducted in accordance with the Employment Dispute Resolution Rules of the American Arbitration Association then in effect. 

(b)    The parties agree to use their best efforts to cause (i) the two individuals set forth in the preceding
Section 11(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 Executive shall be entitled to seek specific performance of Executive’s 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 Executive 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 11 shall be pending,
Executive shall continue to receive at a minimum the base salary which Executive was 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 Executive or may be recovered from Executive if it is determined that Executive was not entitled to the continued payment of base salary under the other provisions of this Agreement. 

12.    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 Executive and such officer of the Company as may be specifically designated by the Board. 

  
 10 

 13.    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. 

14.    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. 
 15.    Payments Net of Taxes. 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 Executive net of and after deduction for all applicable withholding obligations. 

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

17.    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. 

18.    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. 
 19.    Entire Agreement. On and after the Effective Date,
this Agreement shall contain the entire agreement by the parties with respect to the matters covered herein and supersedes any prior agreement (including, but not limited to, the Existing Agreement), 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. 

20.    Legal Fees and Expenses. It is the intent of the Company that Executive not be required to incur the expenses associated
with the enforcement of Executive’s 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 Executive 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 Executive (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. 

  
 11 

 21.    Code Section 409A. Notwithstanding anything to the contrary
in Section 5 hereof, and to the maximum extent permitted by law, this Agreement shall be interpreted in such a manner that all payments of Severance Benefits to Executive under this Agreement are either exempt from, or comply with,
Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), and the regulations and other interpretive guidance issued thereunder (collectively, “Section 409A”), including
without limitation any such regulations or other guidance that may be issued after the Effective Date. For purposes of Section 409A, the right to a series of installment payments under this Agreement shall be treated as a right to a series of
separate payments. 
 The “Lear Corporation Code Section 409A Policies and Procedures” as in effect on the Effective Date are hereby
incorporated by reference in this Agreement as if set forth herein, and shall supersede any conflicting provisions of this Agreement. 

22.    No Excise Tax Gross-Up; Possible Reduction of Payments. 

(a)    If it is determined that any amount or benefit to be paid or payable to Executive under this Agreement or otherwise
in conjunction with his employment (whether paid or payable or distributed or distributable pursuant to the terms of this Agreement or otherwise in conjunction with his employment) would give rise to liability of Executive for the excise tax imposed
by Section 4999 of the Code, as amended from time to time, or any successor provision (the “Excise Tax”), then the amount or benefits payable to Executive (the total value of such amounts or benefits, the
“Payments”) shall be reduced by the Company to the extent necessary so that no portion of the Payments to Executive is subject to the Excise Tax; provided, however, such reduction shall be made only if it results in the Executive
retaining a greater amount of Payments on an after-tax basis (taking into account the Excise Tax and applicable federal, state, and local income and payroll taxes). In the event Payments are required to be
reduced pursuant to this Section 22(a), they shall be reduced in the following order of priority in a manner consistent with Section 409A: (i) first from cash compensation, (ii) next from equity compensation, then (iii) pro-rata among all remaining Payments and benefits. 
 (b)    The
independent public accounting firm serving as the Company’s auditing firm, or such other accounting firm, law firm or professional consulting services provider of national reputation and experience reasonably acceptable to the Company and
Executive (the “Accountants”) shall make in writing in good faith all calculations and determinations under this Section 22, including the assumptions to be used in arriving at any calculations. For purposes of making the
calculations and determinations under this Section 22, the Accountants and each other party may make reasonable assumptions and approximations concerning the application of Section 280G and Section 4999 of the Code. The Company and
Executive shall furnish to the Accountants and each other such information and documents as the Accountants and each other may reasonably request to make the calculations and determinations under this Section 22. The Company shall bear all
costs the Accountants incur in connection with any calculations contemplated hereby. 

  
 12 

 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date and year first above
written. 
  

							
		 		 	LEAR CORPORATION
				
		 		 	By:	 	/s/ Raymond E. Scott
				
		 		 	Name:	 	Raymond E. Scott
				
		 		 	Title:	 	President and Chief Executive Officer
			
		 		 	EXECUTIVE:
				
		 		 		 	/s/ Frank C. Orsini
		 		 		 	Frank C. Orsini

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