Document:

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                                                                   EXHIBIT 10.13

                                LEAR CORPORATION
                       OUTSIDE DIRECTORS COMPENSATION PLAN

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                                LEAR CORPORATION

                       OUTSIDE DIRECTORS COMPENSATION PLAN

ARTICLE 1. ESTABLISHMENT, OBJECTIVES AND DURATION

         1.1      ESTABLISHMENT OF THE PLAN. Lear Corporation, a Delaware
corporation, hereby establishes a compensation plan for independent non-employee
directors to be known as the "Lear Corporation Outside Directors Compensation
Plan" (hereinafter referred to as the "Plan"), as set forth in this document.
The Plan will become effective as of January 1, 2004 (the "Effective Date") and
will remain in effect as provided in Section 1.3 hereof.

         1.2      PLAN OBJECTIVES. The objectives of the Plan are to give the
Company an advantage in attracting and retaining Directors and to link the
interests of Outside Directors to those of the Company's stockholders.

         1.3      DURATION OF THE PLAN. The Plan will commence on the Effective
Date and remain in effect until the Board of Directors terminates it pursuant to
Section 7.1.

ARTICLE 2. DEFINITIONS

         Whenever used in the Plan, the following terms will have the meanings
set forth below, and when the meaning is intended, the initial letter of the
word will be capitalized:

         "ACCOUNTS" means an Outside Director's Stock Account and Interest
Account.

         "AFFILIATES" means, with respect to any person, any other person that,
directly or indirectly, is in control of, is controlled by, or is under common
control with, the first person.

         "ANNUAL RETAINER" means the retainer fee established by the Board in
accordance with Section 5.1 and paid to an Outside Director for services
performed as a member of the Board of Directors for a Plan Year.

         "BENEFICIARY" means the person entitled under Section 6.6 to receive
payment of the balances remaining in an Outside Director's Accounts in case the
Outside Director dies before the entire balances in those Accounts have been
paid.

         "BOARD" or "BOARD OF DIRECTORS" means the Board of Directors of the
Company.

         "CHAIRMAN MEETING FEE" means the fee established by the Board in
accordance with Section 5.2 and paid to an Outside Director who is a Chairman of
a Board committee for attendance at any meeting of that Board committee.

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         "CHANGE IN CONTROL" of the Company will be deemed to have occurred (as
of a particular day, as specified by the Board) as of the first day any one or
more of the following paragraphs is satisfied:

         (a)      any person (other than the Company or a trustee or other
                  fiduciary holding securities under an employee benefit plan of
                  the Company, or a corporation owned directly or indirectly by
                  the stockholders of the Company in substantially the same
                  proportions as their ownership of stock of the Company)
                  becomes the beneficial owner, directly or indirectly, of
                  securities of the Company, representing more than twenty
                  percent of the combined voting power of the Company's then
                  outstanding securities;

         (b)      during any period of twenty-six consecutive months (not
                  including any period prior to the Effective Date), individuals
                  who at the beginning of that period constitute the Board (and
                  any new Directors whose election by the Board or nomination
                  for election by the Company's stockholders was approved by a
                  vote of at least two-thirds of the Directors then still in
                  office who either were Directors at the beginning of the
                  period or whose election or nomination for election was so
                  approved) cease for any reason (except for death, disability
                  or voluntary retirement) to constitute a majority of the
                  Board; or

         (c)      the stockholders of the Company approve: (i) a plan of
                  complete liquidation or dissolution of the Company; (ii) an
                  agreement for the sale or disposition of all or substantially
                  all the Company's assets; or (iii) a merger, consolidation or
                  reorganization of the Company with or involving any other
                  corporation, other than a merger, consolidation or
                  reorganization that would result in the voting securities of
                  the Company outstanding immediately prior thereto continuing
                  to represent (either by remaining outstanding or by being
                  converted into voting securities of the surviving entity) at
                  least eighty percent of the combined voting power of the
                  voting securities of the Company (or the surviving entity)
                  outstanding immediately after the merger, consolidation, or
                  reorganization.

         "COMPANY" means Lear Corporation, a Delaware corporation, and any
successor thereto as provided in Section 7.3.

         "DEFERRAL ELECTION" has the meaning ascribed to it in Section 6.1.

         "DEFERRAL FAIR MARKET VALUE" means the average of the high and low
prices of publicly traded Shares on the national exchange on which the Shares
are listed.

         "DIRECTOR" means any individual who is a member of the Board of
Directors.

         "EFFECTIVE DATE" has the meaning ascribed to it in Section 1.1.

                                      -2-
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         "EXCHANGE ACT" means the Securities Exchange Act of 1934, as amended
from time to time, or any successor to it.

         "INSTALLMENT PAYMENT" has the meaning ascribed to it in Section 5.1.

         "INTEREST ACCOUNT" has the meaning ascribed to it in Section 6.4.

         "LEAD DIRECTOR" means the Outside Director selected by the other
Outside Directors as the presiding Director at meetings of the Outside Directors
held in accordance with applicable rules of any securities exchange on which the
Company's securities are listed.

         "MEETING FEE" means the fee established by the Board in accordance with
Section 5.2 and paid to an Outside Director for attendance at any meeting of (a)
the Board of Directors or (b) any committee of the Board.

         "OUTSIDE DIRECTOR" means a Director who, at the time in question, is
not an employee of the Company or any of its Affiliates.

         "PLAN" has the meaning ascribed to it in Section 1.1.

         "PLAN YEAR" means the 12 month period beginning on January 1 and ending
on the next following December 31.

         "SHARES" means the shares of common stock, $.01 par value, of the
Company, including their associated preferred share purchase rights.

         "STOCK ACCOUNT" has the meaning ascribed to it in Section 6.3.

         "STOCK UNIT" means a notional account established under Section 6.3 for
an Outside Director which is credited with amounts equal to Shares and payable
in cash.

ARTICLE 3. ADMINISTRATION

         3.1      THE BOARD OF DIRECTORS. The Plan will be administered by the
Board of Directors. The Board of Directors will act by a majority of its members
at the time in office and eligible to vote on any particular matter, and may act
either by a vote at a meeting or in writing without a meeting.

         3.2      AUTHORITY OF THE BOARD OF DIRECTORS. Except as limited by law
and subject to the provisions herein, the Board of Directors has full power to:
construe and interpret the Plan and any agreement or instrument entered into
under the Plan; establish, amend or waive rules and regulations for the Plan's
administration; and amend the terms and conditions of the Plan. Further, the
Board of Directors will make all other determinations which may be necessary or
advisable for the administration of the Plan. As permitted by law and consistent
with Section 3.1, the Board of Directors may delegate some or all of its
authority under this Plan.

                                      -3-
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         3.3      DECISIONS BINDING. All determinations and decisions made by
the Board of Directors pursuant to the provisions of the Plan will be final,
conclusive and binding on all persons, including the Company, its stockholders,
all Affiliates, Outside Directors and their estates and beneficiaries.

ARTICLE 4. ELIGIBILITY

         Each Outside Director of the Board during a Plan Year will participate
in the Plan for that year.

ARTICLE 5. COMPENSATION

         5.1      ANNUAL RETAINER. Each Outside Director will be entitled to
receive an Annual Retainer in the amount determined from time to time by the
Board. Until changed by resolution of the Board of Directors, the Annual
Retainer will be $42,000 for each Outside Director other than the Lead Director.
The Annual Retainer for the Lead Director shall be $50,000 (the "Lead Director
Retainer"). In the event the position of Lead Director is held by more than two
Outside Directors in any calendar year, no Outside Director shall be entitled to
the Lead Director Retainer.

         Unless the Outside Director has made a Deferral Election with respect
to them, the Annual Retainer will be paid in four equal cash installments (the
"Installment Payments") as of the last business day of each January, April, July
and October to each individual who is an Outside Director on that date. Each
Installment Payment to an Outside Director will equal the quotient of the
Outside Director's Annual Retainer divided by four. Any Outside Director who
first becomes an Outside Director during a calendar quarter will be entitled to
an Installment Payment for that calendar quarter unless, immediately before
becoming an Outside Director, he or she was a Director who was an employee of
the Company or any of its Affiliates.

         5.2      MEETING FEE. Each Outside Director will be entitled to receive
a Meeting Fee, in the amount determined from time to time by the Board, for each
meeting he or she attends (including telephonic meetings but excluding execution
of unanimous written consents) of the Board of Directors and each meeting of a
Board committee. Each Outside Director who is a Chairman of a Board committee
will be entitled to receive a Chairman Meeting Fee (in addition to a Meeting
Fee), in the amount determined from time to time by the Board, for each meeting
he or she attends (including telephonic meetings but excluding execution of
unanimous written consents) of the Board committee for which he or she is
Chairman. Until changed by resolution by the Board of Directors, the Meeting Fee
will be $1,500 and the Chairman Meeting Fee will be $1,000. Unless the Outside
Director has made a Deferral Election with respect to them, the Meeting Fee and
the Chairman Meeting Fee will be paid in quarterly cash payments for the
meetings, if any, attended during the previous quarter.

                                      -4-
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ARTICLE 6. DEFERRAL

         6.1      DEFERRAL ELECTION. Any Outside Director may elect to defer all
or a portion of the compensation payable to him or her under Article 5 for the
Plan Year by filing with the Secretary of the Company a written notice to that
effect on the Deferral Election Form attached hereto as Exhibit A (a "Deferral
Election"). A Deferral Election will become effective upon the Effective Date
for compensation payable thereafter if filed within thirty days following the
Effective Date. Thereafter, an Outside Director without a Deferral Election in
effect may elect to defer all or a portion of the compensation payable under
Article 5: (a) with respect to any compensation payable under Article 5 for any
Plan Year by filing a Deferral Election on or before the December 31st preceding
the Plan Year; and (b) with respect to any compensation payable under Article 5
for any portion of a Plan Year following the date on which the Director becomes
an Outside Director by filing a Deferral Election within thirty days following
that date. A Deferral Election may not be revoked or modified with respect to
compensation payable for any Plan Year for which it is effective and the
Deferral Election, unless terminated or modified as described below, will apply
to compensation payable under Article 5 with respect to each subsequent Plan
Year. An Outside Director may terminate or modify his or her current Deferral
Election for any subsequent Plan Year by filing a new Deferral Election on or
before December 31 of the then-current Plan Year. An effective Deferral Election
will also terminate on the date a Director ceases to be an Outside Director.

         6.2      ACCOUNTS. At the time an Outside Director makes a Deferral
Election under Section 6.1 he or she must also designate the portion of the
deferred compensation to be credited to a Stock Account and/or an Interest
Account.

         6.3      STOCK ACCOUNT. The amounts the Outside Director elects to
defer to a Stock Account will be credited to that account as of the date the
compensation would otherwise have been payable under Article 5 as Stock Units.
The number of Stock Units so credited will equal the amount of compensation
deferred divided by the Deferral Fair Market Value of a Share on the day the
compensation would otherwise have been paid if the Outside Director had not made
a deferral election.

         If the Company declares a cash dividend on its common stock, then, on
the payment date of the dividend, the Outside Director will be credited with
dividend equivalents equal to the amount of cash dividend per Share multiplied
by the number of Stock Units credited to the Outside Director's Stock Account
through the record date. The dollar amount credited to the Outside Director
under the preceding sentence will be credited to the Outside Director's Interest
Account.

         6.4      INTEREST ACCOUNT. The amounts the Outside Director elects to
defer to an Interest Account under Section 6.2 will be credited to that account
as of the date the compensation would otherwise have been payable under Article
5. The amounts credited to the Interest Account will be credited as of the date
the compensation would otherwise have been payable under Article 5 with
interest, compounded monthly, until the amount credited to the Interest Account
is paid to

                                      -5-
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the Outside Director. 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.

         6.5      DISTRIBUTIONS. The value of an Outside Director's Accounts
will be distributed, or will begin to be distributed, to him or her or, in the
event of his or her death, to his or her Beneficiary, following the earliest of:

         (a)      the date specified by the Outside Director in his or her
                  Deferral Election;

         (b)      the date the Outside Director ceases to be a Director, whether
                  or not through termination due to retirement, death or
                  disability; and

         (c)      the date on which a Change of Control occurs.

         The amount payable to an Outside Director will equal the sum of: (a)
the dollar amount credited to the Outside Director's Interest Account; and (b)
the number of Stock Units credited to the Outside Director's Stock Account
multiplied by the Deferral Fair Market Value on the applicable payout date.

         An Outside Director's Accounts will be paid to him or her in accordance
with his or her Deferral Election. An Outside Director may change the payout
form by filing an irrevocable election of a new payout form with the Secretary
of the Company at least one year and one day before the due date of the first
payment under this Article 6. If an Outside Director fails to elect a payout
form, his or her Accounts shall be paid in a single lump sum payment.

           If an Outside Director elects to receive payment of his or her
Accounts in installments, the payment period for the installments will not
exceed ten years. The amount of each installment payment will equal the product
of (a) the balance in the Outside Director's Accounts on the date the payment is
made multiplied by (b) a fraction, the numerator of which is one and the
denominator of which is the number of unpaid remaining installments. The balance
of the Accounts will be appropriately reduced to reflect any installment
payments already made hereunder. Notwithstanding the foregoing, in the event of
a Change of Control, the balance remaining in an Outside Director's Accounts
will be paid in a single lump sum payment following the Change of Control.

           If an Outside Director dies before he or she has received payment of
all amounts due hereunder, the balances remaining in the Outside Director's
Accounts shall be distributed to his or her Beneficiary in a single lump sum
payment following the Outside Director's death.

                                      -6-
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         All single sum payments shall be made, and all installment payments
shall commence, as soon as administratively feasible following the date that
triggers distribution under this section; provided that, to the extent necessary
to avoid liability under Section 16(b) of the Exchange Act, the amount
attributable to any Stock Units that shall have been credited to the Outside
Director's Stock Account for a period of less than six months shall be
distributed, or commence to be distributed, as soon as administratively feasible
following the expiration of such six month period.

         6.6      BENEFICIARY. An Outside Director may designate, on the
Beneficiary Designation form attached hereto as Exhibit B, any person to whom
payments are to be made if the Outside Director dies before receiving payment of
all amounts due hereunder. A Beneficiary Designation form becomes effective only
after the signed form is filed with the Secretary of the Company while the
Outside Director is alive, and will cancel any prior Beneficiary Designation
form. If the Outside Director fails to designate a beneficiary or if all
designated beneficiaries predecease the Outside Director, the Outside Director's
Beneficiary will be his or her estate.

ARTICLE 7. MISCELLANEOUS

         7.1      MODIFICATION AND TERMINATION. The Board may at any time and
from time to time, alter, amend, modify or terminate the Plan in whole or in
part.

         7.2      INDEMNIFICATION. Each person who is or has been a member of
the Board will be indemnified and held harmless by the Company against and from
any loss, cost, liability, or expense that may be imposed upon or reasonably
incurred by that person in connection with or resulting from any claim, action,
suit, or proceeding to which that person may be a party or in which that person
may be involved by reason of any action taken or failure to act under the Plan
and against and from any and all amounts paid by that person in a settlement
approved by the Company, or paid by that person in satisfaction of any judgment
in any such action, suit, or proceeding against that person, provided he or she
gives the Company an opportunity, at its own expense, to handle and defend the
action, suit or proceeding before that person undertakes to handle and defend
it. The foregoing right of indemnification will not be exclusive of any other
rights of indemnification to which an individual may be entitled under the
Company's Certificate of Incorporation or By-Laws, as a matter of law, or
otherwise, or any power that the Company may have to indemnify him or her or
hold him or her harmless.

         7.3      SUCCESSORS. All obligations of the Company under the Plan with
respect to a given Plan Year will be binding on any successor to the Company,
whether the existence of the successor is the result of a direct or indirect
purchase of all or substantially all of the business and/or assets of the
Company, or a merger, consolidation, or otherwise.

         7.4      RESERVATION OF RIGHTS. Nothing in this Plan will be construed
to limit in any way the Board's right to remove an Outside Director from the
Board of Directors.

                                      -7-
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ARTICLE 8. LEGAL CONSTRUCTION

         8.1      GENDER AND NUMBER. Except where otherwise indicated by the
context, any masculine term used herein will also include the feminine; the
plural will include the singular and the singular will include the plural.

         8.2      SEVERABILITY. If any provision of the Plan is held illegal or
invalid for any reason, the illegality or invalidity will not affect the
remaining parts of the Plan, and the Plan will be construed and enforced as if
the illegal or invalid provision had not been included.

         8.3      REQUIREMENTS OF LAW. The issuance of payments under the Plan
will be subject to all applicable laws, rules, and regulations, and to any
approvals required by any governmental agencies or national securities
exchanges.

         8.4      SECURITIES LAW COMPLIANCE. To the extent any provision of the
Plan or action by the Board would subject any Outside Director to liability
under Section 16(b) of the Exchange Act, it will be deemed null and void, to the
extent permitted by law and deemed advisable by the Board.

         8.5      UNFUNDED STATUS OF THE PLAN. The Plan is intended to
constitute an "unfunded" plan. With respect to any payments not yet made to an
Outside Director by the Company, nothing contained herein will give any rights
to an Outside Director that are greater than those of a general creditor of the
Company.

         8.6      GOVERNING LAW. The Plan will be construed in accordance with
and governed by the laws of the State of Delaware, determined without regard to
its conflict of law rules.

                                    * * * * *

                                      -8-
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                                                                       EXHIBIT A
                                LEAR CORPORATION
                       OUTSIDE DIRECTORS COMPENSATION PLAN

                                DEFERRAL ELECTION

                  As of ________, 20____, the individual whose name appears
below, who is an Outside Director of the Company, hereby elects to defer all or
a portion of the compensation payable to him or her under the terms of the Lear
Corporation Outside Directors Compensation Plan (the "Plan"). This Deferral
Election will remain in full force and effect until the earlier of the date the
Outside Director modifies or terminates it and the date the Director ceases to
be an Outside Director. Any term capitalized herein but not defined will have
the meaning set forth in the Plan.

                  1.       Deferral Election. In accordance with the terms of
the Plan, the Outside Director hereby elects to defer:

                  ____% of the Annual Retainer, and

                  ____% of the Meeting Fees

payable to the Outside Director for calendar years beginning or meetings
occurring after the date this election is filed with the Secretary of Lear
Corporation. (Enter in each blank any whole percentage less than or equal to
100%.).

                  2.       Accounts. The Outside Director hereby elects to have
the amounts deferred under item number 1 above credited to the Accounts in the
percentages indicated below:

                  Interest Account  _____%

                  Stock Account     _____%

(Enter in each blank any whole percentage less than or equal to 100%. The
percentages indicated in both blanks should total 100%. If the Outside Director
fails to designate the account to which some or all of the deferral should be
credited, that portion of the deferral will be credited to the Interest
Account).

                  3.       Timing of Payout. Subject to the terms of the Plan,
the Outside Director hereby elects to have his or her Accounts distributed as
soon as administratively feasible following _______________________ (insert N/A
if Outside Director wishes to receive

<PAGE>

Accounts only after the earlier of (a) the date he or she ceases to be a
Director and (b) the date on which a Change of Control occurs).

                  4.       Form of Payout. In accordance with the terms of the
Plan, the Outside Director hereby elects the following payout form for his or
her Accounts (elect one):

                  _____ single lump sum payment, or

                  _____ installments over ___ years (not to exceed 10 years)
payable (elect one):

                           ____ quarterly,

                           ____ semi-annually, or

                           ____ annually

                  IN WITNESS WHEREOF, the Outside Director has duly executed
this Deferral Election as of the date first written above.

         _____________________________________
         Outside Director's Signature

         ______________________________________
         Outside Director's Name (please print)

<PAGE>

                                                                       EXHIBIT B

                                LEAR CORPORATION
                       OUTSIDE DIRECTORS COMPENSATION PLAN

                             BENEFICIARY DESIGNATION

                  In accordance with the terms of the Lear Corporation Outside
Directors Compensation Plan (the "Plan"), the individual whose name appears
below, who is an Outside Director of the Lear Corporation (the "Company") hereby
designates a beneficiary or beneficiaries, with respect to his or her Accounts
under the Plan.

                  1.       Primary Beneficiary. The following person, or
persons, are hereby designated as primary Beneficiary with respect to the
percentage of the Outside Director's unpaid Accounts indicated for each person:

                  Name:             _____________________________________
                  Relationship:     _____________________________________
                  Address:          _____________________________________
                                    _____________________________________
                                    _____________________________________
                  Percent:          _____________________________________

                  Name:             _____________________________________
                  Relationship:     _____________________________________
                  Address:          _____________________________________
                                    _____________________________________
                                    _____________________________________
                  Percent:          _____________________________________

                  Name:             _____________________________________
                  Relationship:     _____________________________________
                  Address:          _____________________________________
                                    _____________________________________
                                    _____________________________________
                  Percent:          _____________________________________

<PAGE>

                  2.       Secondary Beneficiary. The following person, or
persons, are hereby designated as secondary Beneficiary with respect to the
percentage of the Outside Director's unpaid Accounts indicated for each person:

                  Name:             _____________________________________
                  Relationship:     _____________________________________
                  Address:          _____________________________________
                                    _____________________________________
                                    _____________________________________
                  Percent:          _____________________________________

                  Name:             _____________________________________
                  Relationship:     _____________________________________
                  Address:          _____________________________________
                                    _____________________________________
                                    _____________________________________
                  Percent:          _____________________________________

                  Name:             _____________________________________
                  Relationship:     _____________________________________
                  Address:          _____________________________________
                                    _____________________________________
                                    _____________________________________
                  Percent:          _____________________________________

                  IN WITNESS WHEREOF, the Outside Director has duly executed
this Beneficiary Designation as of ________________, 20__ .

                                          __________________________________
                                          Outside Director's Signature

                                          __________________________________
                                          Outside Director's Name (please print)<PAGE>
                                                                   EXHIBIT 10.14

                                LEAR CORPORATION
                         LONG-TERM STOCK INCENTIVE PLAN

                   2003 DIRECTOR NONQUALIFIED, NONTRANSFERABLE
                        STOCK OPTION TERMS AND CONDITIONS

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

                  2.       Term, Vesting and Exercise of the Stock Option.

                  (a)      If the Participant remains a member of the Board of
the Company, the Stock Option will expire ten years from the Grant Date. If the
Participant ceases to be a member of the Board of the Company before the tenth
anniversary of the Grant Date, his or her right to exercise the Stock Option
after the termination of his or her service as a Director will be only as
provided in Section 3.

                  (b)      The Stock Option will vest and become exercisable on
the earlier of: (i) the third anniversary of the Grant Date; and (ii) the
Participant's End of Service Date, death or Disability. Notwithstanding anything
contained herein to the contrary, the right (whether or not vested) of a
Participant to exercise the Stock Option will be forfeited if the Committee
determines, in its sole discretion, that (i) the Participant has entered into a
business or employment relationship which is detrimentally competitive with the
Company or substantially injurious to the Company's financial interests; (ii)
the Participant has been discharged from service on the Board of the Company for
Cause; or (iii) the Participant has performed acts of willful malfeasance or
gross negligence in a matter of material importance to the Company or an
Affiliate.

                  (c)      The Stock Option may be exercised by written notice
to the Company indicating the number of Shares being purchased. The notice must
be signed by the Participant and must be accompanied by full payment of the
Exercise Price in accordance with Section 4. When the Stock Option is vested and
exercisable, it may be exercised in whole at any time or in part from time to
time as to any or all full Shares under the Stock Option. Notwithstanding the
foregoing, the Stock Option may not be exercised for fewer than 100 Shares at
any one time or, if fewer, all the Shares that are then subject to the Stock
Option.

                  3.       Termination of Service. Subject to the forfeiture
provisions of clause 2(b) above, a Participant's right to exercise the Stock
Option after termination of his or her service as a Director will be only as
follows:

                  (a)      End of Service. If the Participant experiences an End
of Service Date, the Stock Option will immediately vest and become exercisable,
and the Participant will have the right for three years following his or her End
of Service Date (but not later than the date on

<PAGE>

which the Stock Option would otherwise expire), to exercise the Stock Option.
However, if the Participant dies prior to the end of the three-year period after
the End of Service Date, his or her estate will have the right to exercise the
Stock Option until the earliest to occur of: (i) three years following the
Participant's End of Service Date; (ii) thirteen months after the Participant's
death; and (iii) the date on which the Stock Option would otherwise expire under
clause 2(a) above. The Participant's "End of Service Date" is the later to occur
of : (x) the end of his or her service as a director on the Board; and (y) the
end of any written consulting arrangement or other written agreement between the
Participant and the Company or an Affiliate pursuant to which the Participant
provides personal services to the Company or an Affiliate, but in each case only
if the Board determines on or about the End of Service Date that this clause
3(a) will apply to the Participant.

                  (b)      Disability or Death. If the Participant's service on
the Board terminates due to Disability or death, the Stock Option will
immediately vest and become exercisable, and the Participant (or in the case of
death, the Participant's estate) will have the right for a period of thirteen
months following the date of the termination (but not later than the date on
which the Stock Option would otherwise expire) to exercise the Stock Option.

                  (c)      Other Termination. If the Participant's service on
the Board terminates for any reason other than those provided in clauses 3(a) or
(b), the Participant or his or her estate (in the event of his or her death
after termination) will immediately forfeit the right (whether or not vested) to
exercise the Stock Option.

                  4.       Medium and Time of Payment.

                  (a)      The Exercise Price for each Share subject to the
Stock Option will be the Fair Market Value on the date the Stock Option is
granted. The Exercise Price must be paid in United States dollars. The Exercise
Price may be paid in cash, by certified check, by cashier's check, with Shares,
or using any combination of those forms of payment. If any Shares used to pay
all or part of the Exercise Price were acquired through the exercise of a stock
option granted by the Company, or by way of another Company award, those Shares
must have been held by the Participant for at least one year. A certified or
cashier's check used to pay all or part of the Exercise Price must be made
payable to the order of the Company at the time of purchase.

                  (b)      The Exercise Price must be paid in full before any
Shares will be issued pursuant to the Stock Option.

                  (c)      Any withholding tax, up to the minimum withholding
requirement for supplemental wages will be paid with Shares issueable to the
Participant upon exercise under this Stock Option. Shares used to satisfy the
Exercise Price and/or any minimum required withholding tax will be valued at
their Fair Market Value as of the date of exercise.

                                      -2-
<PAGE>

                  5.       Transferability of Stock Option and Shares Acquired
Upon Exercise of Stock Option. This Stock Option is transferable only by will or
the laws of descent and distribution, or pursuant to a domestic relations order
(as defined in Code Section 414(p)). The Stock Option will be exercisable during
the Participant's lifetime only by the Participant or by his or her guardian or
legal representative. The Committee may, in its discretion, require a guardian
or legal representative to supply it with evidence the Committee deems necessary
to establish the authority of the guardian or legal representative to exercise
the Stock Option on behalf of the Participant. Except as limited by applicable
securities laws and the provisions of Section 6 hereof, Shares acquired upon
exercise of this Stock Option will be freely transferable.

                  6.       Securities Law Requirements.

                  (a)      If required by the Company, the notice of exercise of
the Stock Option must be accompanied by the Participant's written
representation: (i) that the stock being acquired is purchased for investment
and not for resale or with a view to its distribution; (ii) acknowledging that
the stock has not been registered under the Securities Act of 1933, as amended
(the "1933 Act"); and (iii) agreeing that the stock may not be sold or
transferred unless either there is an effective Registration Statement for it
under the 1933 Act, or in the opinion of counsel for the Company, the sale or
transfer will not violate the 1933 Act. This Stock Option will not be
exercisable in whole or in part, nor will the Company be obligated to sell any
Shares subject to the Stock Option, if exercise and sale may, in the opinion of
counsel for the Company, violate the 1933 Act (or other federal or state
statutes having similar requirements), as it may be in effect at that time.

                  (b)      The Stock Option is 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 Stock Option 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 granting of the Stock Option or the issuance of Shares
under it, the Stock Option may not be exercised in whole or in part, unless the
necessary listing, qualification, consent or approval has been effected or
obtained free of any conditions not acceptable to the Committee.

                  (c)      No person who acquires Shares pursuant to this Stock
Option 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 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 Stock Option
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 Stock
Option 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.

                                      -3-
<PAGE>

                  7.       No Obligation to Exercise Stock Option. The granting
of the Stock Option imposes no obligation upon the Participant (or upon a
transferee of the Participant to exercise the Stock Option.

                  8.       No Limitation on Rights of the Company. The grant of
the Stock Option 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.

                  9.       Plan and Stock Option Not a Contract of Employment.
Neither the Plan nor this Stock Option is a contract of employment, and no terms
of service of the Participant as a member of the Board of the Company will be
affected in any way by the Plan, this Stock Option or related instruments except
as specifically provided therein. Neither the establishment of the Plan nor this
Stock Option will be construed as conferring any legal rights upon the
Participant for a continuation of employment or service as a member of the Board
of the Company, nor will 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 treatment might have upon him or her as a Participant.

                  10.      Participant to Have No Rights as a Stockholder. The
Participant will have no rights as a stockholder with respect to any Shares
subject to the Stock Option prior to the date on which he or she is recorded as
the holder of those Shares on the records of the Company. The Participant will
not have the rights of a stockholder until he or she has paid the Exercise Price
in full.

                  11.      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, P. O. Box 5008, Southfield, Michigan, 48086-5008, Attention:
General Counsel and, in the case of the Participant, to the last known address
of the Participant in the Company's records.

                  12.      Governing Law. This document and the Stock Option
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.

                  13.      Plan Document Controls. The rights granted under this
Stock Option 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
herein. If the terms of this document or the Stock Option conflict with the
terms of the Plan document, the Plan document will control.

                                      -4-

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