Document:

exv10w2

 

EXHIBIT 10.2

 LYNN FETTERMAN INC. PROJECT AGREEMENT

Arcadia Resources , Inc. (the “Company”) agrees to engage Lynn Fetterman Inc. (Consultant) to
furnish the services of a Chief Financial Officer (Principal Financial and Accounting Officer),
Secretary and Treasurer (collectively the “Services”), on an interim basis, according to the
following terms:

	I.	 	Project Services; Fees

	 	A.	 	Consultant will furnish the Services through Lynn Fetterman during the course
of this engagement, beginning on Feb 1, 2007 and ending
March 31, 2007 or 30 business day(s) after
a permanent CFO begins employment, whichever is later, on a full time basis which
shall be understood to mean up to and possibly exceeding 40 hours per week, unless the
engagement is terminated sooner as provided herein. Although Mr. Fetterman will begin
furnishing services to the Company effective February 1, 2007, Mr. Fetterman’s
appointment by the Board of Directors to the Interim Officer positions will be
effective February 9, 2007 and he will continue in the Interim Officer positions until
a permanent CFO begins employment subject to his sooner resignation or removal from
office, unless the term of this agreement is sooner terminated as provided for herein.
The Company will pay the Consultant at the rate of $ 90.00 per hour (“Project Fees”).
A $7,000 retainer fee will be paid upon signing this Agreement. Upon conclusion of
the engagement, the retainer will either be returned to the Company upon payment in
full of all of your outstanding invoices or applied to any outstanding invoice with
any balance remaining to be returned to the Company. No Company employee
compensation, employee fringe benefits, worker’s compensation coverage, bonuses or
other amounts are or will be payable to Consultant or Mr. Fetterman, except that the
Company will use reasonable efforts to obtain coverage for Mr. Fetterman under its
existing director’s and officer’s insurance coverage, with the same scope and limits
of coverage as made available to the Company’s other officers and directors.

	II.	 	Payment;

	 	A.	 	The Company will pay all amounts owed to consultant on a weekly basis . The
Company will promptly reimburse consultant for reasonable travel and out-of-pocket
business expenses. All reimbursements of expenses will occur as project fees are
paid.
	 
	 	B.	 	Consultant shall be entitled to receive all reasonable costs and expenses
incidental to the collection of overdue amounts under this agreement, including but
not limited to attorneys’ fees actually incurred.

	III.	 	Personnel; Relationship of the Parties

	 	A.	 	The parties agree that Consultant will be serving the Company as an
independent contractor for all purposes and not as employee with the Company.
Consultant therefore will have control over the order and sequence of project work and
the specific hours worked, will have the opportunity for entrepreneurial profit, and
will not be subject to Company withholding of income or employment taxes.
	 
	 	B.	 	The Company acknowledges that consultant’s success in performing the services
depends on the participation, cooperation, and support of the Company’s most senior
management.
	 
	 	C.	 	Consultant agrees that Lynn Fetterman shall sign, file and deliver all
documents on behalf of the Company as would fall within the customary scope of duties
of a Chief Financial Officer (Principal Financial and Accounting Officer), Secretary
and Treasurer, including but not limited to federal or state securities filings, tax
filings, representations and warranties on behalf of the Company, loan and other
documents.

 

 

	 	D.	 	Consultant agrees that it and Lynn Fetterman shall comply with all Company
policies and procedures in effect from time to time applicable to executive officers,
including prohibitions on insider trading, in addition to all applicable laws, rules
and regulations
	 
	 	E.	 	Mr. Fetterman will report directly to the Company’s Chairman and CEO, except
as otherwise determined by the Company’s Board of Directors. He will devote 100% of
his business time and attention to duties as the interim CFO.
	 
	 	F.	 	During the engagement, Mr. Fetterman shall perform the duties of a Chief
Financial Officer of a public company, together with such duties as may be designated
by the Company’s Board of Director or Chief Executive Officer from time to time. Such
duties to be performed shall include, but not be limited to, the oversight of the
preparation of, and the execution of, the Company’s 10-Q for the fiscal quarter ending
December 31, 2006 to the extent not completed by the outgoing CFO, Form 10-K for the
fiscal year ending March 31, 2007, all amendments to these or other existing or
subsequent filing and other related filings and certifications required in connection
therewith or otherwise required pursuant to the United States securities laws,
including existing, pending and subsequent securities registration statements, 8-K
filings, amendments to such filings and the like. Consultant acknowledges and agrees
that the execution of these documents is an integral part of the responsibilities
hereunder and that Mr. Fetterman shall agree to execute such documents, assuming that
they are as usually prepared in the normal course of business and appropriate in form,
regardless of whether or not the Company has hired a permanent CFO prior to the filing
of such documents, it being acknowledged that it is the intention of the Company to
hire a permanent CFO as soon as reasonably possible but that such successor may not be
formally designated as the CFO until after the time that such forms are required to be
filed. Mr. Fetterman will not required to execute a document or certification
referred to in the preceding sentence if he determines, in his reasonable professional
judgment, that the provisions thereof are inaccurate, provided that in such event he
shall immediately advise the Company’s Chief Executive Officer of the reason for the
determination. If the Company is able to cure such a defect, Mr. Fetterman will
execute the disputed document.

	 	G.	 	To the fullest extent permitted by law, the Company agrees to indemnify, hold
harmless and defend Consultant and Mr. Fetterman against any and all losses, claims,
damages, liabilities, penalties, judgments, awards, amounts paid in settlement,
reasonable out-of-pocket costs, fees, expenses and disbursements including, without
limitation, reasonable attorney fees, directly or indirectly caused by, relating to,
based upon or arising out of or in connection with the engagement or the Services
rendered pursuant to the engagement, provided that the Company will not be responsible
of the payment of indemnification amounts hereunder (and any indemnified person shall
reimburse the Company for indemnification amounts already paid) that are determined by
a final judgment of a Court of competent jurisdiction to have resulted from any
indemnified person’s bad faith, self- dealing, gross negligence or willful misconduct.
	 
	 	H.	 	Consultant is not aware of any conflicts of interests or relationships that
would preclude it from furnishing the services to the Company.

	IV.	 	Early Termination

	 	A.	 	Effective upon 30 days’ advance written notice, either party may terminate
this agreement without cause, such termination to be effective on the date specified
in the notice, provided that such date is no earlier than 30 days from the date of
delivery of the notice, unless the parties agree in writing to a different termination
date as the parties intend to do so upon the Company hiring a permanent replacement
CFO.
	 
	 	B.	 	Either party may terminate this agreement immediately for cause including a
breach of this Agreement.

 

 

	V.	 	Standard Disclaimers & Limitations of Liability

	 	A.	 	The Company agrees that reports, projections, or forecasts may be prepared
only at the Company’s direction and will reflect the Company’s own judgment.
Consultant makes no representation or warranty as to the accuracy or reliability of
reports, projections, or forecasts derived from use of the information it provides,
and consultant will not be liable for any claims of reliance on such reports,
projections, forecasts, or information, which are subject to indemnification
hereunder. To the extent a claim or other matter is subject to indemnification
hereunder, Consultant will not be liable for any non-compliance by the Company of
reports, projections, forecasts, or information or services with federal, state, or
local laws or regulations.
	 
	 	B.	 	Consultant will not be liable in any event for incidental, consequential,
punitive, or special damages, including without limitation, any interruption of
business or loss of business, profit, or goodwill.

	VI.	 	Miscellaneous Provisions

	 	A.	 	The provisions concerning payment of the Project Fees, limitation of
liability, confidentiality, and arbitration will survive the expiration or any
termination of this agreement.
	 
	 	B.	 	Neither the Company nor consultant will be deemed to have waived any rights
or remedies accruing under this agreement unless such waiver is in writing and signed
by the party electing to waive the right or remedy.
	 
	 	C.	 	The terms of this agreement are severable, and they may not be amended except
in writing signed by consultant. If any portion of this agreement is found to be
unenforceable, the rest of the agreement will be enforceable except to the extent that
the severed provision deprives either party of a substantial portion of its bargain.
	 
	 	D.	 	This agreement contains the entire agreement between consultant, superseding
any prior oral or written statements or agreements. This agreement shall be construed
under the laws of the State of Florida.
	 
	 	E.	 	Each person signing below is authorized to sign on behalf of the party
indicated, and in each case such signature is the only one necessary.

VIII Confidentiality

          Consultant agrees that it will maintain in confidence and not disclose to anyone any material
non-public information about or concerning the Company acquired during this engagement, and not use
that information except for purposes of this engagement, including without limiting the generality
of the foregoing, any customer lists, supplier information, marketing plans, pricing information,
employee information or organization charts, or financial information. All company information
shall be returned to the Company at the termination of engagement.

	 	 	 	 	 
	John Elliott, Chairman and CEO
Arcadia Resources, Inc

	 	Lynn Fetterman Inc.	 	 
	 
	 	 	 	 
	/s/ John E. Elliott, II

	 	/s/ Lynn Fetterman	 	 
	 

Signature

	 	 

Signature
	 	 
	John E. Elliott, II Chairman and CEO

	 	Lynn Fetterman, President	 	 
	 

	 	 
	 	 
	Name and Title

	 	Name and Title	 	 
	January 31, 2007

	 	January 31, 2007	 	 
	 

	 	 
	 	 
	Date signed

	 	Date signed	 	 

Agreed to by Lynn Fetterman as to those obligations to which he is subject:

	 	 	 
	/s/ Lynn Fetterman
	 	 
	 

Lynn Fettermanexv10w1

 

Exhibit 10.1

LEAR CORPORATION

LONG-TERM STOCK INCENTIVE PLAN

FORM OF PERFORMANCE UNIT AWARD AGREEMENT

          PERFORMANCE UNIT AWARD AGREEMENT (the “Agreement”) dated as of ___, between Lear
Corporation (the “Company”) and the individual whose name appears on the signature page hereof (the
“Participant”), who is a key employee of the Company or an Affiliate. Any term capitalized herein,
but not defined, shall have the meaning set forth in the Lear Corporation Long-Term Stock Incentive
Plan (the “Plan”).

          1. GRANT. In accordance with the terms of the Plan, the Company hereby grants to the
Participant a Performance Unit Award subject to the terms and conditions set forth herein. Each
Performance Unit shall have a notional value of $30.00, provided, however, that no amounts will be
paid or payable hereunder unless the Participant earns Performance Units pursuant to Section 5
hereof.

          2. PERFORMANCE PERIOD. The Performance Period for this Award shall be the three-year period
commencing on January 1, 2007 and ending on December 31, 2009.

          3. PERFORMANCE MEASURE. There shall be one performance measure, Earnings Growth, as defined
below.

          “Earnings Growth” shall mean the compounded annual growth rate of the Company’s annual
operating income during the 3-year Performance Period. Operating income shall mean the Company’s
pretax income excluding the North American Interior business, interest expense, impairments,
restructurings and other special items such as, among others: investment gains and losses;
extraordinary, unusual or non-recurring items; gains or losses on the sale of assets; effects of
changes in accounting principles or the application thereof; asset impairment charges;
acquisitions, divestitures, or financing activities; recapitalizations, including stock
splits and dividends; expenses for restructuring or productivity initiatives; and other
non-operating items.

          4. PERFORMANCE GOALS.

     Earnings Growth:

	 	i.	 	Threshold: 5% per year average growth
	 
	 	ii.	 	Target: 10% per year average growth
	 
	 	iii.	 	Superior: 15% per year average growth

 

 

          5. PERFORMANCE UNITS.

               a. The number of Performance Units earned by a Participant with respect to the performance
measure during the Performance Period shall be determined under the following chart:

	 	 	 	 	 
	 	 	Number of Performance	 
	Performance At	 	Units	 
	 	 	Earnings Growth	 
	Threshold
	 	 	 	 
	 
	 	 	 
	Target
	 	 	 	 
	 
	 	 	 
	Superior
	 	 	 	 
	 
	 	 	 

               b. In the event that the Company’s actual performance does not meet threshold for that
performance measure, Performance Units shall not be earned with respect to that performance
measure.

               c. If the Company’s actual performance for a performance measure is between “threshold” and
“target,” the Performance Units earned shall equal the Performance Units for threshold plus the
number of Performance Units determined under the following formula:

	 	 	 
	(TAS — TS) x

	 	AP — TP

TAP — TP

	 	 	 
	TAS =

	 	The Performance Units for target.
	 
	 	 
	TS =

	 	The Performance Units for threshold.
	 
	 	 
	AP =

	 	The Company’s actual performance.
	 
	 	 
	TP =

	 	The threshold performance goal.
	 
	 	 
	TAP =

	 	The target performance goal.

               d. If the Company’s actual performance for a performance measure is between “target” and
“superior,” the Performance Units earned shall equal the Performance Units for target plus the
number of Performance Units determined under the following formula:

	 	 	 
	(SS — TAS) x

	 	AP — TAP

SP — TAP

	 	 	 
	SS =

	 	The Performance Units for superior.
	 
	 	 

 

 

	 	 	 
	TAS =

	 	The Performance Units for target.
	 
	 	 
	AP =

	 	The Company’s actual performance.
	 
	TAP =

	 	The target performance goal.
	 
	 	 
	SP =

	 	The superior performance goal.

               e. If the Company’s actual performance for performance measure exceeds “superior,” the
Performance Units earned shall equal the Performance Units for superior.

          6. TIMING AND FORM OF PAYOUT. Except as hereinafter provided, after the end of the
Performance Period, the Participant shall be entitled to receive a dollar amount equal to the
product of (i) the value per Performance Unit of $30 multiplied by (ii) his or her total number of
Performance Units determined under Section 5. Payment of such amount shall be made as soon as
administratively feasible after the Committee certifies the actual performance of the Company
during the Performance Period. Notwithstanding the foregoing, any delivery of any amount payable
under this Section may be irrevocably deferred by the Participant with the Committee’s consent;
provided, that the Participant’s election to defer occurs prior to the expiration of the second
year of the Performance Period. Notwithstanding anything herein to the contrary, the Committee may
defer payment of any amount hereunder to the Participant under this Section if the payment of such
amount would constitute compensation to the Participant that is not deductible by the Company or an
Affiliate due to the application of Code Section 162(m); provided, that such amount deferred
pursuant to this sentence shall be delivered to the Participant on or before the January 15 of the
first year in which the Participant is no longer a “covered employee” of the Company (within the
meaning of Code Section 162(m)) following the end of the Performance Period or, if later, the
deferred delivery date elected by the Participant in accordance with the preceding sentence.
Notwithstanding anything in this Section 6 to the contrary, an election to defer hereunder shall
comply with the requirements of Section 409A of the Code or it will not be a valid election.

          7. TERMINATION OF EMPLOYMENT DUE TO DEATH, RETIREMENT, OR DISABILITY. If a Participant ceases
to be an employee prior to the end of the Performance Period by reason of death, retirement or
disability, the Participant (or in the case of the Participant’s death, the Participant’s
beneficiary) shall be entitled to receive a cash amount equal the product of (i) the value per
Performance Unit of $30 multiplied by (ii) the number of Performance Units the Participant would
have been entitled to under Section 6 if he or she had remained employed until the last day of the
Performance Period multiplied by a fraction, the numerator of which shall be the number of full
calendar months during the period of January 1, 2007 through the date of the Participant’s
employment terminated and the denominator of which shall be thirty-six. The payment of such amount
shall be made as soon as administratively feasible after the end of the Performance Period, whether
or not the Participant had elected under Section 6 above to defer receipt of any amount deliverable
under this Award.

               Any distribution made with respect to a Participant who has died shall be paid to the
beneficiary designated by the Participant pursuant to Article 11 of the Plan to receive

 

 

amounts
payable under this Award. If the Participant’s beneficiary predeceases the Participant or no
beneficiary has been properly designated, distribution of any amounts payable to the Participant
under this Award shall be made to the Participant’s surviving spouse and if none, to the
Participant’s estate.

          8. TERMINATION OF EMPLOYMENT FOR ANY OTHER REASON. Except as provided in Section 7, the
Participant must be an employee of the Company and/or an Affiliate continuously
from the date of this Award until the last day of the Performance Period to be entitled to receive
any amounts with respect to any Performance Units he or she may have earned hereunder.

          9. ASSIGNMENT AND TRANSFERS. The rights and interests of the Participant under this Award may
not be assigned, encumbered or transferred except, in the event of the death of the Participant, by
will or the laws of descent and distribution.

          10. WITHHOLDING TAX. The Company and any Affiliate shall have the right to retain any amounts
that are distributable to the Participant hereunder to the extent necessary to satisfy the minimum
required withholding taxes, whether federal, state or local, triggered by the payment of any
amounts under this Award.

          11. NO LIMITATION ON RIGHTS OF THE COMPANY. The grant of this Award shall not in any way
affect the right or power of the Company to make adjustments, reclassification, or changes in its
capital or business structure, or to merge, consolidate, dissolve, liquidate, sell or transfer all
or any part of its business or assets.

          12. PLAN AND AGREEMENT NOT A CONTRACT OF EMPLOYMENT. Neither the Plan nor this Agreement is a
contract of employment, and no terms of employment of the Participant shall be affected in any way
by the Plan, this Agreement or related instruments except as specifically provided therein.
Neither the establishment of the Plan nor this Agreement shall be construed as conferring any legal
rights upon the Participant for a continuation of employment, nor shall it interfere with the right
of the Company or any Affiliate to discharge the Participant and to treat him or her without regard
to the effect that such treatment might have upon him or her as a Participant.

          13. NOTICE. Any notice or other communication required or permitted hereunder shall be in
writing and shall be delivered personally, or sent by certified, registered or express mail,
postage prepaid. Any such notice shall be deemed given when so delivered personally or, if mailed,
three days after the date of deposit in the United States mail, in the case of the Company to 21557
Telegraph Road, Southfield, Michigan, 48034, Attention: General Counsel and, in the case of the
Participant, to its address set forth on the signature page hereto or, in each case, to such other
address as may be designated in a notice given in accordance with this Section.

          14. GOVERNING LAW. This Agreement shall be construed and enforced in accordance with, and
governed by, the laws of the State of Michigan, determined without regard to its conflict of law
rules.

 

 

          15. PLAN DOCUMENT CONTROLS. The rights herein granted are in all respects subject to the
provisions set forth in the Plan to the same extent and with the same effect as if set forth fully
herein. In the event that the terms of this Agreement conflict with the terms of the Plan document,
the Plan document shall control.

[signature page follows]

 

 

IN WITNESS WHEREOF, the Company and the Participant have duly executed this Agreement as of
the date first written above.

	 	 	 	 	 
	 

	 	LEAR CORPORATION	 	 
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 

Roger A. Jackson
	 	 
	 
	 	 	 	 
	 

	 	Its: Senior Vice President, Human
 Resources	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 

	 	[Participant’s Signature]	 	 
	 
	 	 	 	 
	 

	 	Participant’s Name and Address for notices

hereunder

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