Document:

exv10w1

Exhibit 10.1

LEAR CORPORATION

2009 LONG-TERM STOCK INCENTIVE PLAN

2011 RESTRICTED STOCK UNIT TERMS AND CONDITIONS

          1. Definitions. Any term capitalized herein but not defined will have the meaning set
forth in the Plan.

          2. Grant and Vesting of Restricted Stock Units.

          (a) As of the Grant Date specified in the letter that accompanies this document, the Employee
will be credited with the number of Restricted Stock Units set forth in the letter that accompanies
this document. Each Restricted Stock Unit is a notional amount that represents one unvested share
of Common Stock, $0.01 par value, of the Company (the “Common Stock”). Each Restricted Stock Unit
constitutes the right, subject to the terms and conditions of the Plan and this document, to
distribution of a Share if and when the Restricted Stock Unit vests. If the Employee’s employment
with the Company and all of its Affiliates terminates before the date that all of the Restricted
Stock Units vest, his or her right to receive the Shares underlying unvested Restricted Stock Units
will be only as provided in Section 4.

          (b) The Restricted Stock Units will vest on the third anniversary of the Grant Date.
Notwithstanding anything contained herein to the contrary, the right of an Employee to receive
Shares underlying a Restricted Stock Unit will be forfeited if the Committee determines, in its
sole discretion, that (i) the Employee has entered into a business or employment relationship that
is detrimentally competitive with the Company or substantially injurious to the Company’s financial
interests; or (ii) the Employee has been discharged from employment with the Company or an
Affiliate for Cause.

          3. Rights as a Stockholder.

          (a) Unless and until a Restricted Stock Unit has vested and the Share underlying it has been
distributed to the Employee, the Employee will not be entitled to vote in respect of that RSU or
that Share.

          (b) If the Company declares a cash dividend on its shares, then, on the payment date of the
dividend, the Employee will be credited with dividend equivalents equal to the amount of cash
dividend per share multiplied by the number of Restricted Stock Units credited to the Employee
through the record date. The dollar amount credited to an Employee under the preceding sentence
will be credited to an account (“Account”) established for the Employee for bookkeeping purposes
only on the books of the Company. The amounts credited to the Account will be credited as of the
last day of each month with interest, compounded monthly, until the amount credited to the Account
is paid to the Employee. The rate of interest credited under the previous sentence will be the
prime rate of interest as reported by the Midwest edition of the Wall Street Journal for the second
business day of each quarter on an annual basis.

 

 

The balance in the Account will be subject to the same terms regarding vesting and forfeiture
as the Employee’s Restricted Stock Units awarded under the accompanying letter and this document,
and will be paid in cash in a single sum at the time that the Shares associated with the Employee’s
Restricted Stock Units are delivered (or forfeited at the time that the Employee’s Restricted Stock
Units are forfeited).

          4. Termination of Employment. Subject to the forfeiture provisions of clause 2(b)
above, an Employee’s right to receive the Shares underlying his or her Restricted Stock Units after
termination of his or her employment will be only as follows:

          (a) End of Service. If the Employee experiences an End of Service Date, the Employee
will be entitled to receive the Shares underlying any Restricted Stock Units that have then vested.
In addition, the Employee will be entitled to receive immediately the Shares underlying the number
of Restricted Stock Units, if any, that have not yet vested but would have vested under Section 2
if the Employee’s End of Service Date had been 24 months following his actual End of Service Date.
The Employee will forfeit the right to receive Shares underlying any Restricted Stock Units that
have not yet vested or would not have vested in the next 24 months as described in the preceding
sentence. The Employee’s “End of Service Date” is the date of his or her retirement after
attaining age 55 and completing ten years of service.

          (b) Other Termination of Employment. If an Employee’s employment with the Company
shall be terminated for Disability or by the Company for any reason other than Cause, upon the
Employee’s death or, for an Employee who is a party to an employment or severance agreement with
the Company, by the Employee for Good Reason (as defined in the Employee’s employment or severance
agreement), the Employee will be immediately entitled to receive the Shares underlying all of the
Restricted Stock Units that have not yet vested under Section 2 above. If an Employee’s employment
with the Company terminates for any reason other than those provided in Section 4(a) or the first
sentence of this Section 4(b), the Employee or his or her estate (in the event of his or her death
after termination) will forfeit the right to receive Shares underlying any Restricted Stock Units
that have not yet vested. For each Employee who is a party to an employment or severance agreement
with the Company, for purposes of this Section 4, the term “Disability” shall mean “Incapacity” as
defined in such Employee’s employment or severance agreement, as applicable.

          5. Timing and Form of Payment. Except as provided in this Section or in clause 2(b)
or Section 4, once a Restricted Stock Unit vests, the Employee will be entitled to receive a Share
in its place. Delivery of the Share will be made as soon as administratively feasible after its
associated Restricted Stock Unit vests. Shares will be credited to an account established for the
benefit of the Employee with the Company’s administrative agent. The Employee will have full legal
and beneficial ownership with respect to the Shares at that time.

          6. Assignment and Transfers. The Employee may not assign, encumber or transfer any of
his or her rights and interests under the Award described in this document, except, in the event of
his or her death, by will or the laws of descent and distribution.

          7. Withholding Tax. The Company and any Affiliate will have the right to retain
Shares or cash that are distributable to the Employee hereunder to the extent necessary to

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satisfy any withholding taxes, whether federal or state, triggered by the distribution of
Shares or cash pursuant to the Award reflected in this document.

          8. Securities Law Requirements.

          (a) The Restricted Stock Units are subject to the further requirement that, if at any time the
Committee determines in its discretion that the listing or qualification of the Shares subject to
the Restricted Stock Units under any securities exchange requirements or under any applicable law,
or the consent or approval of any governmental regulatory body, is necessary as a condition of, or
in connection with, the issuance of Shares under it, then Shares will not be issued under the
Restricted Stock Units, unless the necessary listing, qualification, consent or approval has been
effected or obtained free of any conditions not acceptable to the Committee.

          (b) No person who acquires Shares pursuant to the Award reflected in this document may,
during any period of time that person is an affiliate of the Company (within the meaning of the
rules and regulations of the Securities and Exchange Commission under the Securities Act of 1933
(the “1933 Act”)) sell the Shares, unless the offer and sale is made pursuant to (i) an effective
registration statement under the 1933 Act, which is current and includes the Shares to be sold, or
(ii) an appropriate exemption from the registration requirements of the 1933 Act, such as that set
forth in Rule 144 promulgated under the 1933 Act. With respect to individuals subject to Section
16 of the Exchange Act, transactions under this Award are intended to comply with all applicable
conditions of Rule 16b-3, or its successors under the Exchange Act. To the extent any provision of
the Award or action by the Committee fails to so comply, the Committee may determine, to the extent
permitted by law, that the provision or action will be null and void.

          9. No Limitation on Rights of the Company. Subject to Sections 4.3 and 15.2 of the
Plan, the grant of the Award described in this document will 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.

          10. Plan, Restricted Stock Units and Award Not a Contract of Employment. Neither the
Plan, the Restricted Stock Units nor any other right or interest that is part of the Award
reflected in this document is a contract of employment, and no terms of employment of the Employee
will be affected in any way by the Plan, the Restricted Stock Units, the Award, this document or
related instruments, except as specifically provided therein. Neither the establishment of the
Plan nor the Award will be construed as conferring any legal rights upon the Employee for a
continuation of employment, nor will it interfere with the right of the Company or any Affiliate to
discharge the Employee and to treat him or her without regard to the effect that treatment might
have upon him or her as an Employee.

          11. Employee to Have No Rights as a Stockholder. Except as provided in Section 3
above, the Employee will have no rights as a stockholder with respect to any Shares subject to the
Restricted Stock Units prior to the date on which he or she is recorded as the holder of those
Shares on the records of the Company.

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          12. Notice. Any notice or other communication required or permitted hereunder must be
in writing and must be delivered personally, or sent by certified, registered or express mail,
postage prepaid. Any such notice will 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, 48033, Attention: General Counsel and, in the case of the
Employee, to the last known address of the Employee in the Company’s records.

          13. Governing Law. This document and the Award will 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.

          14. Code Section 409A. Notwithstanding any other provision in this Restricted Stock
Unit document, if an Employee is a “specified employee” (as such term is defined for purposes of
Code Section 409A) at the time of his or her termination of employment, no amount that is subject
to Code Section 409A and that becomes payable by reason of such termination of employment shall be
paid to the Employee before the earlier of (i) the expiration of the six-month period measured from
the date of the Employee’s termination of employment, and (ii) the date of the Employee’s death.

          15. Plan Document Controls. The rights granted under this Restricted Stock Unit
document are in all respects subject to the provisions of the Plan to the same extent and with the
same effect as if they were set forth fully therein. If the terms of this document or the Award
conflict with the terms of the Plan document, the Plan document will control.

4exv10w2

Exhibit 10.2

LEAR CORPORATION

2009 LONG-TERM STOCK INCENTIVE PLAN

FORM OF 20__ PERFORMANCE SHARE TERMS AND CONDITIONS

          1. DEFINITIONS. Any term capitalized herein, but not defined, shall have the meaning set forth
in the Lear Corporation 2009 Long-Term Stock Incentive Plan (the “Plan”).

          2. GRANT. In accordance with the terms of the Plan, the Company hereby grants to the
Participant identified above a Performance Share Award (in the amount set forth in Section 6
hereof) subject to the terms and conditions set forth herein (the “Terms”).

          3. PERFORMANCE PERIOD. The Performance Period for this Award shall be the three-year period
commencing on January 1, 20___ and ending on December 31, 20__.

          4. PERFORMANCE MEASURE. The Award shall be based on two performance measures for the
Performance Period: Adjusted Return on Invested Capital (“ROIC”) and Cumulative Pretax Income.
Two-thirds (2/3) of the Award shall be based on ROIC and the remaining one-third (1/3) shall be
based on Cumulative Pretax Income. ROIC is the Company’s adjusted return on invested capital based
on adjusted operating income for the Performance Period. Adjusted operating income shall mean
pretax income excluding interest, other expenses, restructurings and other special items.
“Cumulative Pretax Income” is the Company’s cumulative net income for the Performance Period before
a provision for income taxes.

          The Company’s actual ROIC performance for the Performance Period will be determined by
calculating the average of the actual ROIC performance for each of the years in the Performance
Period.

          5. PERFORMANCE GOALS.

	 	 	 	 	 
	 	 	Performance Goals
	 	 	Adjusted Return on Invested	 	Cumulative Pretax Income
	Performance At	 	Capital	 	(millions)
	Maximum

	 	[goal]
	 	[goal]
	Target

	 	[goal]
	 	[goal]
	Threshold

	 	[goal]
	 	[goal]

 

 

          6. PERFORMANCE SHARES.

               a. The number of Performance Shares earned by a Participant during the Performance Period
shall be as follows:

	 	 	 	 	 
	 	 	Performance Shares
	 	 	Adjusted Return on Invested	 	 
	Performance At	 	Capital	 	Cumulative Pretax Income
	Maximum
	 	 	 	 
	Target
	 	 	 	 
	Threshold
	 	 	 	 

               b. In the event that the Company’s actual performance does not meet threshold, Performance
Shares shall not be earned.

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

	 	 	 	 	 

	(TAS - TS)

	 	x
	 	AP - TP
	 

	 	 	 	TAP - TP

	 	 	 	 	 

	 

	 	TAS =
	 	The Performance Shares for target.
	 
	 	 	 	 
	 

	 	TS =
	 	The Performance Shares for threshold.
	 
	 	 	 	 
	 

	 	AP =
	 	The Company’s actual performance.
	 
	 	 	 	 
	 

	 	TP =
	 	The threshold performance goal.
	 
	 	 	 	 
	 

	 	TAP =
	 	The target performance goal.

               e. If the Company’s actual performance is between “target” and “maximum,” the Performance
Shares earned shall equal the Performance Shares for target plus the number of Performance Shares
determined under the following formula:

	 	 	 	 	 

	(MS - TAS)

	 	x
	 	AP - TAP
	 

	 	 	 	MP - TAP

	 	 	 	 	 

	 

	 	MS =
	 	The Performance Shares for maximum.
	 
	 	 	 	 
	 

	 	TAS =
	 	The Performance Shares for target.
	 
	 	 	 	 
	 

	 	AP =
	 	The Company’s actual performance.
	 
	 	 	 	 
	 

	 	TAP =
	 	The target performance goal.

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	 	MP =
	 	The maximum performance goal.

               f. If the Company’s actual performance exceeds “maximum,” the Performance Shares earned shall
equal the Performance Shares for maximum.

          7. TIMING AND FORM OF PAYOUT. Except as hereinafter provided, after the end of the
Performance Period, the Participant shall be entitled to receive a number of shares of the
Company’s common stock, par value $.01 share (“Common Stock”), equal to his or her total number of
Performance Shares determined under Section 6. Delivery of such shares of Common Stock shall be
made in the calendar year next following the end of the Performance Period, as soon as
administratively feasible after ROIC and Cumulative Pretax Income results are approved and
certified by the Compensation Committee, but in no event later than December 31 of that year.

          If the Company declares a cash dividend on its shares, then, on the payment date of the
dividend, the Participant will be credited with dividend equivalents equal to the amount of cash
dividend per share multiplied by the Target number of Performance Shares credited to the Employee
through the record date. The dollar amount credited to the Participant under the preceding
sentence will be credited to an account (“Account”) established for the Participant for bookkeeping
purposes only on the books of the Company. The amounts credited to the Account will be credited as
of the last day of each month with interest, compounded monthly, until the amount credited to the
Account is paid to the Participant. The rate of interest credited under the previous sentence will
be the prime rate of interest as reported by the Midwest edition of the Wall Street Journal for the
second business day of each quarter on an annual basis. The balance in the Account will be subject
to the same terms regarding levels of payment and forfeiture as the Participant’s Performance
Shares awarded under the accompanying letter and this document, and will be paid in cash in a
single sum at the time that any Shares associated with the Participant’s Performance Shares are
delivered (or forfeited at the time that the Employee’s Performance Shares are forfeited). For
purposes of clarity, if the Maximum performance goal is achieved, the dividend Account will be paid
at twice the amount of the Account at Target level, and if only the Threshold goal is achieved, the
dividend Account will be paid at half the amount of the Account at Target level. The dividend
Account for levels of performance in between the foregoing levels of performance will be paid at
interpolated amounts in the proportions identified in Section 6 hereof. If no Performance Shares
are earned, no amount in the Account will be paid.

          8. TERMINATION OF EMPLOYMENT DUE TO END OF SERVICE, DEATH, DISABILITY, BY THE COMPANY WITHOUT
CAUSE, OR BY THE PARTICIPANT FOR GOOD REASON. If a Participant ceases to be an employee prior to
the end of the Performance Period by reason of End of Service, death, Disability, termination by
the Company for any reason other than Cause, or, for a Participant who is a party to an employment
or severance agreement with the Company, termination by the Participant for Good Reason (as defined
in the Participant’s employment or severance agreement, as applicable), the Participant (or in the
case of the Participant’s death, the Participant’s beneficiary) shall be entitled to receive a
number of shares of Common Stock 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,
20___ through the date the Participant’s employment terminated and the

3

 

denominator of which shall be 36, the total number of months in the Performance Period. Delivery
of such shares of Common Stock shall be made in the calendar year next following the end of the
Performance Period, as soon as administratively feasible after ROIC and Cumulative Pretax Income
results are approved and certified by the Compensation Committee, but in no event later than
December 31 of that year. For each Participant who is a party to an employment or severance
agreement with the Company, for purposes of this Section 8, the term “Disability” shall mean
“Incapacity” as defined in such Participant’s employment or severance agreement, as applicable.
“End of Service” shall mean the date of a Participant’s retirement after attaining age 55 and
completing ten years of service.

               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.

          9. TERMINATION OF EMPLOYMENT FOR ANY OTHER REASON. Except as provided in Section 8, 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 Shares he or she may have earned hereunder.

          10. 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.

          11. 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.

          12. 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.

          13. PLAN AND TERMS NOT A CONTRACT OF EMPLOYMENT. Neither the Plan nor these Terms is or are a
contract of employment, and no terms of employment of the Participant shall be affected in any way
by the Plan, these Terms or related instruments except as specifically provided therein. Neither
the establishment of the Plan nor these Terms 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.

          14. 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

4

 

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, 48033, 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.

          15. GOVERNING LAW. These Terms 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.

          16. 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 these Terms conflict with the terms of the Plan document,
the Plan document shall control.

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