Document:

EX-10.30

 

    EXHIBIT 10.30

 

    Description
    of Arrangement for Directors Fees

 

    The table below sets forth the amount of fees payable to outside
    directors of Webster Financial Corporation for their services as
    Directors for the period April 2006 to April 2007. The
    Nominating and Corporate Governance Committee will conduct its
    annual compensation review in April 2007 in connection with the
    Company’s annual meeting. The Committee may decide to
    revise the Schedule shown below at the meeting or at another
    meeting.

 

	 	 	 
	

    Event

	
 
	
    Amount

	 

	

    Annual Retainer
    

	
 
	
    $32,000 ($25,000 payable in the
    form of shares of restricted stock pursuant to the 2001
    Directors Retainer Fees Plan, and $7,000 payable in cash)
    

	

    Board Meeting Attended
    

	
 
	
     $1,500
    

	

    Committee Meeting Attended
    

	
 
	
     $1,250
    

	

    Telephonic Board Meeting
    

	
 
	
       $750
    

	

    Telephonic Committee Meeting
    

	
 
	
       $625
    

	

    Separate Webster Financial
    Corporation and Webster Bank Board Meetings (Held on the Same
    Day)
    

	
 
	
     $2,000
    

	

    Annual Retainer for Lead Director
    and Chair of the Nominating and Corporate Governance Committee
    

	
 
	
    $20,000
    

	

    Annual Retainer for the Chair of
    the Audit Committee
    

	
 
	
    $15,000
    

	

    Annual Retainer for the Chair of
    the Compensation Committee
    

	
 
	
     $7,500
    

	

    Annual Retainer for the Chair of
    the Risk Committee
    

	
 
	
     $7,500
    

    

    113exv10w8

 

Exhibit 10.8

March 15, 2005

Mr. James M. Brackenbury

1124 Calle Parque

El Paso, TX 79912

Dear Jim:

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

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

     1. Term of Agreement. This Agreement shall commence as of March 15, 2005 (“Effective Date”).
The initial term of this Agreement shall be two (2) years from the Effective Date. The term of
this Agreement shall at all times be two (2) years, that is, the term of this Agreement shall be
automatically extended each day for an additional day such that this Agreement shall continually
have an unexpired term of two (2) years, until the date two (2) years after written notice is
provided by either the Company or the Executive that this Agreement is not to be further extended
(a “Notice of Non-Renewal”), the date set forth in a Notice of Termination provided pursuant to
Section 4, the date of the Executive’s death, or the date the Executive reaches his or her normal
retirement date under the Lear Corporation Pension Plan or its successor, whichever shall first
occur (the initial term as so extended is referred to herein as the “Term”).

     2. Terms of Employment. During the Term, you agree to be a full-time employee of the Company
serving initially in the position of Senior Vice President and
President, European Operations*.

 

			
	* 	Effective September 16, 2006. 

 

 

Mr. James M. Brackenbury

March 15, 2005

Page 2 of 18

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

     3. Compensation.

     (a) As compensation for your services, under this Agreement, you shall be entitled during the
Term to receive an initial base salary the annualized amount of which shall be
$500,000*, to be paid in accordance with existing payroll practices for executives of
the Company. Increases in your base salary, if any, shall be as approved by the Compensation
Committee of the Board. In addition, you shall be eligible to receive an annual incentive
compensation bonus (“Bonus”) to be approved from time to time by the Compensation Committee of the
Board.

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

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

     4. Termination of Employment.

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

 

			
	*	 	Effective September 16, 2006.

2

 

Mr. James M. Brackenbury

March 15, 2005

Page 3 of 18

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

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

(i) an act of fraud, embezzlement or theft by you in connection with your duties or in the
course of your employment with the Company;

(ii) your material breach of any provision of this Agreement, provided that in
those instances in which your material breach is capable of being cured, you have failed to
cure within a thirty (30) day period after notice from the Company;

(iii) an act or omission, which is (x) willful or grossly negligent, (y) contrary to
established policies or practices of the Company, and (z) materially harmful to the business
or reputation of the Company, or to the business of the Company’s customers or suppliers as
such relate to the Company; or

(iv) a plea of nolo contendere to, or conviction for, a felony.

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

(i) any reduction by the Company in your base salary or adverse change in the manner of
computing your Bonus, as in effect from time to time, except for across-the-board salary
reductions or changes to the manner of computing bonuses similarly affecting all executive
officers of the Company subject to Section 16(b) of the Securities Exchange Act of 1934, as
determined by the Board (“executive officers”);

(ii) the failure by the Company to pay or provide to you any amounts of base salary or Bonus
or any benefits which are due, owing and payable to you pursuant to the terms hereof, except
pursuant to an across-the-board compensation deferral similarly affecting all executive
officers, or to pay to you any portion of an installment of deferred compensation due under
any deferred compensation program of the Company;

(iii) except in the case of across-the-board reductions, deferrals, eliminations, or plan
modifications similarly affecting all executive officers, the failure by the Company to
continue to provide you with benefits substantially similar in the aggregate

3

 

Mr. James M. Brackenbury

March 15, 2005

Page 4 of 18

to the Company’s life insurance, medical, dental, health, accident or disability plans in
which you are participating at the date of this Agreement;

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

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

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

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

(i) any Person as that term is used in Section 13(d)(3) or Section 14(d)(2) of the
Securities Exchange Act of 1934 (the “Exchange Act”) (other than the Company or a trustee or
other fiduciary holding securities under an employee benefit plan of the Company, or a
corporation owned directly or indirectly by the shareholders of the Company in substantially
the same proportions as their ownership of stock of the Company) becomes the Beneficial
Owner, as that term is defined in Rule 13d-3 of the General Rules and Regulations under the
Exchange Act, directly or indirectly, of securities of the Company, representing more than
twenty percent of the combined voting power of the Company’s then outstanding securities.

(ii) during any period of twenty-six consecutive months beginning on or after the Effective
Date, individuals who at the beginning of the period constituted the Board cease for any
reason (other than death, disability or voluntary retirement) to constitute a majority of
the Board. For this purpose, any new Director whose election by the Board, or nomination
for election by the Company’s shareholders, was approved by a vote of at least two-thirds of
the Directors then still in office, and who either were Directors at the beginning of the
period or whose election or nomination for election was so approved, will be deemed to have
been a Director at the beginning of any twenty-six month period under consideration.

4

 

Mr. James M. Brackenbury

March 15, 2005

Page 5 of 18

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

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

(i) if your employment is terminated by reason of your death, the date of your death;

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

(iii) if your employment is terminated by you for any reason, the Date of Termination shall
be not less than thirty (30) nor more than sixty (60) days from the date such Notice of
Termination is given, or such earlier date after the date such Notice of Termination is
given as may be identified by the Company.

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

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

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

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

5

 

Mr. James M. Brackenbury

March 15, 2005

Page 6 of 18

the Company had your
employment continued until the end of the calendar year, (ii) for the period from the end of the
calendar year in which such termination occurs until two (2) years from the Date of Termination
(the “Payment End Date”), you shall receive all compensation payable to you under the Company’s
disability and medical plans and programs, as in effect on the Date of Termination, plus an
additional payment from the Company (if necessary) such that the aggregate amount received by you
from all sources equals your base salary at the rate in effect on the Date
of Termination, and (iii) for purposes of outstanding awards and amounts owing or accrued as
described in Section 5(d)(iii) of this Agreement, your employment shall be deemed to have been
terminated due to your Disability (as that term is defined in the plans, programs, or arrangements
described in Section 5(d)(iii) of this Agreement). After the Payment End Date, your benefits shall
be determined under the Company’s retirement, insurance and other compensation programs then in
effect in accordance with the terms of such programs. The additional payments by the Company
described in this Section 5(a) shall be conditioned upon the execution by you or a representative
with legal authority to act on your behalf of a general release relating to your employment in form
and substance reasonably acceptable to the Company.

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

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

     (d) If your employment shall be terminated (a) by the Company, except for a termination by the
Company for Cause or Incapacity or by a Notice of Non-Renewal (or due to

6

 

Mr. James M. Brackenbury

March 15, 2005

Page 7 of 18

your death), or (b) by you
for Good Reason, then you shall be entitled to the benefits provided below:

(i) The Company shall pay you your full base salary through the Date of Termination at the
rate in effect at the time Notice of Termination is given (or, if greater, at the rate in
effect at any time within 90 days prior to the time Notice of Termination is given), plus
all other amounts to which you are entitled under any compensation or benefit plans of the
Company, including, without limitation, a Bonus prorated for the portion of the Bonus
measurement period occurring prior to the Date of Termination, at the time such payments are
due, except as otherwise provided below.

(ii) Conditioned upon your execution of a general release relating to your employment in
form and substance reasonably acceptable to the Company, the Company shall pay or cause to
be paid to you, in lieu of any further payments to you for the portion of the Term
subsequent to the Termination Date an amount (the “Severance Payment”), which shall be equal
to the sum of:

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

The Severance Payment shall be paid over a period of one (1) year (the “Severance Period”)
in the following manner: an amount equal to fifty percent (50%) of the value of the
Severance Payment, or, if the Severance Period is adjusted per Section 10(e), then an amount
equal to twenty-five percent (25%) of the value of the Severance Payment, paid in a lump sum
as soon as administratively practicable after your Termination Date; and an amount equal to
the remaining fifty percent (50%) or seventy-five percent (75%), as applicable, paid in
equal semi-monthly installments, without interest, beginning six (6) months after the
Termination Date and continuing through the end of the Severance Period. Notwithstanding
the foregoing, in the event that the Termination Date occurs prior to the first anniversary
of the Effective Date, the Severance Period will be increased by one year.

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Mr. James M. Brackenbury

March 15, 2005

Page 8 of 18

(iii) All outstanding awards, and all amounts owing or accrued, on the Date of
Termination under the Lear Corporation Long-Term Stock Incentive Plan (“LTSIP”), the Lear
Corporation Management Stock Purchase Plan (“MSPP”), the Lear Corporation Executive
Supplemental Savings Plan (“ESSP”) and the Lear Corporation Pension Equalization Program
(“PEP”), and any other compensation or equity-based plan, program or arrangement of the
Company in which you participated (including, following a Change in Control, any additional
accruals provided thereunder due to a Change in Control) will be paid to you under the terms
and conditions of such plans, programs and arrangements (and the award agreements and other
documents thereunder), as modified by this Section 5(d)(iii). Your awards and amounts owing
or accrued that vest based on the passage of
time and/or continued service (and not based primarily upon the satisfaction of performance
measures, as described below) will vest as scheduled during the Severance Period as if you
had remained employed; to the extent such awards and amounts owing or accrued, other than
those stock options held by you on the Effective Date, have not vested by the end of your
Severance Period, they will become vested and nonforfeitable on a pro rata basis determined
by multiplying the unvested awards and amounts by a fraction, the numerator of which is the
number of full months that elapsed from the grant date to the end of your Severance Period,
as adjusted by Section 10(e), and the denominator of which is the number of full months in
the total vesting period. Your vested stock options shall be exercisable (A) prior to a
Change in Control, for thirteen months following your Date of Termination (but not later
than the date on which the stock options would otherwise expire if you remained employed by
the Company), and (B) following a Change in Control, throughout their entire term. In the
case of those awards and amounts owing or accrued which would otherwise have become vested
and nonforfeitable primarily upon the satisfaction of performance measures set forth in the
relevant award agreement, plan, program or arrangement, you shall be paid in stock as soon
as administratively feasible after the end of the relevant performance period (or such
earlier period as the other participants in such award agreement, plan, program or
arrangement are eligible to be paid out), a pro rata amount (if and to the extent all
relevant performance objectives are actually achieved at target levels), based on a
fraction, the numerator of which is the number of full months that elapsed from the grant
date to your Date of Termination and the denominator of which is the number of full months
in the relevant performance period.

You and the Company acknowledge that references in this Section 5(d)(iii) to the PEP, the
MSPP, the ESSP, and the LTSIP, shall be deemed to be references to such plans as amended or
restated from time to time and to any similar plan of the Company that supplements or
supersedes any such plans. In addition, you and the Company acknowledge that references in
this Section 5 to any Section of the Code shall be deemed to be references to such Section
as amended from time to time or to any successor thereto.

(iv) The Company shall arrange to provide to you, your dependents, and beneficiaries, for
the Severance Period, benefits provided under any “welfare benefit plan” of the Company (as
the term “welfare benefit plan” is defined in Section 3(1) of the Employee Retirement Income
Security Act of 1974, as amended) (“Welfare Benefits”). If and to the

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Mr. James M. Brackenbury

March 15, 2005

Page 9 of 18

extent that any such
Welfare Benefits shall not or cannot be paid or provided under any policy, plan, program or
arrangement of the Company (A) solely due to the fact that you are no longer an officer or
employee of the Company or did not continue as an officer or employee of the Company during
the remainder of the Term or (B) as a result of the amendment or termination of any plan
providing for Welfare Benefits, the Company shall then itself pay or provide for the payment
of such Welfare Benefits to you, your dependents and beneficiaries. Without otherwise
limiting the purposes or effect of the no mitigation obligation in Section 5(h) hereof,
Welfare Benefits payable to you (including your dependents and beneficiaries) pursuant to
this Section 5(d)(iv) shall be reduced to the extent comparable welfare benefits are
actually received by you (including your dependents and beneficiaries) from another employer
during such period, and any such benefits actually received by you shall be reported by you
to the Company.

(v) Your right to acquire any shares of the Company’s capital stock under any and all
outstanding stock options, or other rights previously granted to you under any equity-based
plans of the Company shall be governed by the express terms of such plans and the applicable
agreements thereunder, except as provided in Section 5(a), 5(b), or 5(d)(iii) of this
Agreement.

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

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

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

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

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Mr. James M. Brackenbury

March 15, 2005

Page 10 of 18

create any mitigation,
offset, reduction or any other obligation on the part of you hereunder or otherwise, except as
expressly provided in this Section 5.

     6. Certain Additional Payments by the Company.

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

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

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Mr. James M. Brackenbury

March 15, 2005

Page 11 of 18

calculations to both the Company and you as promptly as
possible. Any such Underpayment shall be promptly paid by the Company to or for your benefit
within three calendar days after receipt of such determination and calculations.

     (c) The Company and you shall each cooperate with the Accounting Firm in connection with the
preparation and issuance of the determination provided for in Section 6(b) hereof. Such
cooperation shall include without limitation providing the Accounting Firm access to and copies of
any books, records and documents in the possession of the Company or you, as the case may be, that
are reasonably requested by the Accounting Firm.

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

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

     (i) give the Company any information reasonably requested by the Company relating, to
such claim;

     (ii) take such action in connection with contesting such claim as the Company shall
reasonably request in writing, from time to time, including without limitation accepting
legal representation with respect to such claim by an attorney reasonably selected by the
Company;

     (iii) cooperate with the Company in good faith in order effectively to contest such
claim; and

     (iv) permit the Company to participate in any proceedings relating to such claim;

provided, however, that the Company shall bear and pay directly all costs and expenses (including
additional interest and penalties) incurred in connection with such contest and shall indemnify and
hold you harmless, on an after-tax basis, for any Excise Tax or income tax, including interest and
penalties with respect thereto, imposed as a result of such representation and payment of costs and

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Mr. James M. Brackenbury

March 15, 2005

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expenses. Without limitation on the foregoing provisions of this Section 6(e), the Company shall,
provided that such control does not have a material adverse affect on your individual income tax
with respect to matters unrelated to the contest of the Excise Tax, control all proceedings taken
in connection with such contest and, at its sole option, may, provided that such pursuit or
foregoing does not have a material adverse affect on your individual income tax with respect to
matters unrelated to the contest of the Excise Tax, pursue or forego any and all administrative
appeals, proceedings, hearings and conference with the IRS in respect of such claim (but, you may
participate therein at your own cost and expense) and may, at its sole option, provided that such
payment, suit, contest or prosecution does not have a material adverse affect on your individual
income tax with respect to matters unrelated to the contest of the Excise Tax, either direct you to
pay the tax claimed and sue for a refund or contest the claim in any permissible manner, and you
agree to prosecute such contest to a determination before any administrative tribunal, in a court
of initial jurisdiction and in one or more appellate courts, as the Company shall determine;
provided, however, that if the Company directs you to pay the tax claimed and sue for a refund, the
Company shall advance the amount of such payment to you on an interest-free basis and shall
indemnify and hold you harmless, on an after-tax basis, from any Excise Tax or income tax,
including interest or penalties with respect thereto, imposed with respect to such advance or with
respect to any imputed income with respect to such advance; and further provided that any
extension of the statute of limitations relating to payment of taxes for your taxable year with
respect to which the contested amount is claimed to be due is limited solely to such contested
amount. Furthermore, the Company’s control of such contest shall be limited to issues with respect
to which a Gross Up Payment would be payable hereunder, and you shall be entitled to settle or
contest, as the case may be, any other issue raised by the IRS.

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

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

     8. Successors; Binding Agreement. The Company will require any successor (whether direct or
indirect, by purchase, merger, consolidation or otherwise) to all or substantially all the business
and/or assets of the Company, to expressly assume and agree to perform this Agreement in the same
manner and to the same extent that the Company would be required to perform it if no such
succession had taken place, and will assign its rights and obligations hereunder to such successor.
Failure of the Company to make such an assignment and to obtain

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Mr. James M. Brackenbury

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Page 13 of 18

such assumption and agreement
prior to the effectiveness of any such succession, unless you agree otherwise in writing with the
Company or the successor, shall entitle you to compensation from the Company in the same amount and
on the same terms as you would be entitled to hereunder if you terminate your employment for Good
Reason and the date on which any such succession becomes effective shall be deemed your Date of
Termination. As used in this Agreement, “Company” shall mean the Company as hereinbefore defined
and any successor to its business and/or assets as aforesaid which assumes and agrees to perform
this Agreement by operation of law, or otherwise. This Agreement shall inure to the benefit of and
be enforceable by your personal or legal representatives, executors, administrators, successors,
heirs, distributees and/or legatees. This Agreement is personal in nature and neither of the
parties hereto shall, without the consent of the other, assign, transfer or delegate this Agreement
or any rights or obligations hereunder except as expressly provided in this Section 8. Without
limiting the generality of the foregoing, your right to receive payments hereunder shall not be
assignable or transferable, whether by pledge, creation of a security interest or otherwise, other
than by a transfer by your will or by the laws of descent and distribution and, in the event of any
attempted assignment or transfer contrary to this Section 8, the Company shall have no liability to
pay to the purported assignee or transferee any amount so attempted to be assigned or transferred.
The Company and you recognize that each party will have no adequate remedy at law for any material
breach by the other of any of the agreements contained herein and, in the event of any such breach,
the Company
and you hereby agree and consent that the other shall be entitled to a decree of specific
performance, mandamus or other appropriate remedy to enforce performance of this Agreement.

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

     10. Noncompetition.

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

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Mr. James M. Brackenbury

March 15, 2005

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traded company representing 5% or less of the total voting power and 5% or less of the
total value of such an enterprise. You agree that the Company is a global business and that it is
appropriate for this Section 10 to apply to Competitive Activity conducted anywhere in the world.

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

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

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

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

     11. Confidentiality and Cooperation.

     (a) You shall not knowingly use, disclose or reveal to any unauthorized person, during or
after the Term, any trade secret or other confidential information relating to the Company or any
of its affiliates, or any of their respective businesses or principals, such as, without
limitation, dealers’ or distributor’s lists, information regarding personnel and manufacturing
processes, marketing and sales plans, pricing or cost information, and all other such information;
and you

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Mr. James M. Brackenbury

March 15, 2005

Page 15 of 18

confirm that such information is the exclusive property of the Company and its affiliates.
Upon termination of your employment, you agree to return to the Company on demand by the Company
all memoranda, books, papers, letters and other data, and all copies thereof or therefrom, in any
way relating to the business of the Company and its affiliates, whether made by you or otherwise in
your possession.

     (b) Any design, engineering methods, techniques, discoveries, inventions (whether patentable
or not), formulae, formulations, technical and product specifications, bill of materials, equipment
descriptions, plans, layouts, drawings, computer programs, assembly, quality control, installation
and operating procedures, operating manuals, strategic, technical or marketing information,
designs, data, secret knowledge, know-how and all other information of a confidential nature
prepared or produced during the period of your employment and which ideas, processes, and other
materials or information relate to any of the businesses of the Company, shall be owned by the
Company and its affiliates whether or not you should in fact execute an assignment thereof or other
instrument or document which may be reasonably necessary to protect and secure such rights to the
Company.

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

     12. Arbitration.

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

     (b) The parties agree to use their best efforts to cause (i) the two individuals set forth in
the preceding Section 12(a), or, if applicable, the American Arbitration Association, to appoint
the arbitrator within 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

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Mr. James M. Brackenbury

March 15, 2005

Page 16 of 18

hearing to be held within 30 days of the date of selection of the arbitrator, and, as a
condition to his or her selection, such arbitrator must consent to be available for a hearing, at
such time.

     (c) Judgment may be entered on the arbitrator’s award in any court having jurisdiction,
provided that you shall be entitled to seek specific performance of your right to be paid and to
participate in benefit programs during the pendency of any dispute or controversy arising under or
in connection with this Agreement. The Company and you hereby agree that the arbitrator shall be
empowered to enter an equitable decree mandating specific performance of the terms of this
Agreement. If any dispute under this Section 12 shall be pending, you shall continue to receive at
a minimum the base salary which you were receiving immediately prior to the act or omission which
forms the basis for the dispute. At the close of the arbitration, such continued base salary
payments may be offset against any damages awarded to you or may be recovered from you if its
determined that you were not entitled to the continued payment of base salary under the other
provisions of this Agreement.

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

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

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

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

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

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

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Mr. James M. Brackenbury

March 15, 2005

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

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

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

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

[Signature Page Follows]

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Mr. James M. Brackenbury

March 15, 2005

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     If this letter sets forth our agreement on the subject matter hereof, kindly sign and return
to the Company the enclosed copy of this letter which will then constitute our agreement on this
subject, effective on March 15, 2005 (“Effective Date”).

	 	 	 	 	 
	Sincerely,	 	 
	 
	 	 	 	 
	LEAR CORPORATION	 	 
	 
	 	 	 	 
	By:

	 	/s/ Roger A. Jackson
 

Roger A. Jackson
	 	 
	 
	 	 	 	 
	Agreed to this 15th day of March, 2005	 	 
	 
	 	 	 	 
	/s/ James M. Brackenbury	 	 
	 	 	 
	James M. Brackenbury	 	 

18

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