Document:

EX-10.3

 EXHIBIT 10.3 

GENTHERM INCORPORATED 

2013 EQUITY INCENTIVE PLAN 

RESTRICTED STOCK UNIT AWARD AGREEMENT 

TIME-BASED GRANT 

Gentherm Incorporated, a Michigan corporation (the “Corporation”), as permitted by the Gentherm Incorporated 2013
Equity Incentive Plan (the “Plan”), hereby grants to the individual listed below (the “Participant”), a restricted stock unit award as described herein, subject to the terms and conditions of the Plan
and this Restricted Stock Unit Award Agreement (“Agreement”). 
 Unless otherwise defined in this Agreement, the
terms used in this Agreement have the same meaning as defined in the Plan. 
 1.    NOTICE
OF RESTRICTED STOCK UNIT AWARD.
  

			
		
	Participant:	 	 
		
	Grant Date:	 	 
		
	Number of Restricted Stock Units in Award: 	 	 

 2.    GRANT OF RESTRICTED
STOCK UNIT AWARD. The Corporation hereby grants to the Participant, as of the Grant Date, the number of restricted stock units (“RSUs”) described in the
table above. Each RSU that becomes vested in accordance with the terms of this Agreement represents the right to receive one share of Common Stock of the Corporation. 

3.    VESTING IN GENERAL. Except as otherwise provided in
this Agreement, the RSUs shall become vested in the following amounts on the following dates, provided, however, that the portion of the RSUs scheduled to become vested on any such vesting date shall become vested on such vesting date
only if the Participant remains continuously employed on a full-time basis with the Corporation or its Subsidiaries from the Grant Date until such vesting date: 
  

			
	 Anniversary of Grant Date

(each, a “Vesting Date”)
	  	 Shares of RSUs

Vested on Vesting Date

		
	First	  	 
		
	Second	  	 
		
	Third	  	 

 4.    QUALIFYING TERMINATION PRIOR
TO NORMAL VESTING DATE. Notwithstanding Section 3 of this Agreement but subject to the notice and release requirements set forth below in this
Section 4, if the Participant’s employment is terminated (a) on account of the Participant’s death, (b) on account of the Participant’s “Disability” (as defined below), (c) on account of the Participant’s
termination by the Corporation or applicable Subsidiary without “Cause” (as defined in the Offer Letter between the Corporation and the Participant dated as of October 22, 2018 (the “Offer Letter”)), whether or not in
connection with a “Change in 
  

 
Control” (as defined in the Offer Letter), or (d) on account of the Participant’s resignation for “Good Reason” (as defined in the Offer Letter), any then unvested RSUs
shall become vested as of the date of the Participant’s employment termination. The vesting of unvested RSUs under this Section 4 is conditioned upon the Participant (or, in the case of the Participant’s death, an executor or
administrator of the Participant’s estate) signing and delivering to the Corporation, and there becoming irrevocable, within 30 days after the date of such employment termination, a general release of claims (in form and substance
reasonably acceptable to the Corporation) by which the Participant releases the Corporation and its affiliated entities and individuals from any claim arising from the Participant’s employment by, or termination of employment with, the
Corporation or its Subsidiaries, in consideration for the receipt and vesting of the RSUs. Any RSUs that would have otherwise vested under this Section 4 shall be forfeited unless the general release becomes effective and irrevocable on or
before the 30th day following such termination of the Participant’s employment. 

5.    DISABILITY. “Disability” means the
Participant’s inability to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected either to result in death or to last for an uninterrupted period of not less than
twelve (12) months. 
 6.    FORFEITURE. Upon termination of the
Participant’s employment with the Corporation and its Subsidiaries for any reason prior to the generally applicable vesting date under Section 3 above, any RSUs that do not become vested upon such employment termination in accordance with
the terms of this Agreement shall be immediately canceled and forfeited for no consideration at the time of termination of the Participant’s employment termination. 

7.    SETTLEMENT OF RSUS. Subject
to satisfaction of the Participant’s withholding tax obligations under Section 11 below, within ten (10) business days after the date upon which an RSU becomes vested in accordance with the terms of this Agreement, the Corporation
shall issue or transfer to the Participant one share of Common Stock. In all cases in which RSUs vest in accordance with Section 4, the delivery of Common Stock by the Corporation is conditioned upon the receipt by the Corporation of the
general release of claims described in Section 4. 
 8.    RIGHTS AS
STOCKHOLDER. Until and if shares of Common Stock are issued in settlement of vested RSUs, the Participant shall not have any rights of a stockholder (including voting and dividend rights) in respect of the Common Shares
underlying the RSUs. 
 9.    ADJUSTMENTS. In the event of any stock
dividend, stock split, recapitalization, merger, consolidation or reorganization of or by the Corporation that occurs after the Grant Date and prior to the date of settlement of the RSUs, appropriate adjustments shall be made to the RSUs so that
they represent the right to receive upon settlement any and all substituted or additional securities or other property (other than cash dividends) to which the Participant would have been entitled if the Participant had owned, at the time of such
stock dividend, stock split, recapitalization, merger, consolidation, or reorganization, the Common Stock that may be issued upon vesting of the RSUs. 

10.    NON-TRANSFERABILITY
OF AWARD. Neither the RSUs nor any interest in the RSUs may be transferred, assigned, pledged, hypothecated or borrowed against, except for a transfer under the laws of descent or distribution as
a result of the death of the Participant. The terms of the Plan and this Agreement shall be binding upon the Participant’s executors, administrators, heirs, successors and assigns. Any attempt to transfer, assign, pledge
or hypothecate the RSUs in violation of this Section 10 in any manner shall be null and void and without legal force or effect. 

  
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 11.    WITHHOLDING
OBLIGATIONS. The Participant shall be responsible for all taxes required by law to be withheld by the Corporation or a Subsidiary in respect of the settlement of vested RSUs, and the Corporation may make any arrangements it
deems appropriate to ensure payment of any such tax by the Participant. In its Discretion and by way of example and without limitation (i) the Corporation may condition the settlement of vested RSUs upon the Participant first paying cash to the
Corporation in an amount equal to any such withholding tax obligation, (ii) the Corporation may retain and not issue to the Participant that number of shares of Common Stock otherwise issuable upon vesting of the RSUs which have a then value
equal to the amount of any such withholding tax, or (iii) the Corporation or any Subsidiary may collect any such withholding tax by reducing any compensation or other amount otherwise then or thereafter owing by the Corporation or any
Subsidiary to the Participant. 
 12.    THE PLAN;
AMENDMENT. This Award is subject in all respects to the terms, conditions, limitations and definitions contained in the Plan, which is incorporated herein by reference. In the event of any discrepancy or
inconsistency between this Agreement and the Plan, the terms and conditions of the Plan shall control. The Committee shall have the right, in its sole discretion, to modify or amend this Agreement from time to time in accordance with and as
provided in the Plan. This Agreement may also be modified or amended by a writing signed by both the Corporation and the Participant. The Corporation shall give written notice to the Participant of any such modification or amendment of this
Agreement as soon as practicable after the adoption thereof. 
 13.    RIGHTS OF
PARTICIPANTS; REGULATORY REQUIREMENTS. Without limiting the generality of any other provision of this Agreement or the Plan, Sections 21 and 22 of the Plan pertaining to the
Participant’s rights and certain regulatory requirements are hereby explicitly incorporated into this Agreement. 

14.    NOTICES. Notices hereunder shall be mailed or delivered to the
Corporation at its principal place of business and shall be mailed or delivered to the Participant at the address on file with the Corporation or, in either case, at such other address as one party may subsequently furnish to the other party in
writing. 
 15.    GOVERNING LAW. This
Agreement shall be legally binding and shall be executed and construed and its provisions enforced and administered in accordance with the laws of the State of Michigan, without regard to its choice of law or conflict of law provisions that would
cause the application of the laws of any jurisdiction other than the State of Michigan. 

16.    TRANSFER OF PERSONAL
DATA. The Participant authorizes, agrees and unambiguously consents to the transmission by the Corporation (and its Subsidiaries) of any personal data information related to this Award for legitimate business
purposes (including, without limitation, the administration of the Plan). This authorization and consent is freely given by the Participant. 

  
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 17.    BINDING AGREEMENT;
ASSIGNMENT. This Agreement shall inure to the benefit of, be binding upon, and be enforceable by the Corporation and its successors and assigns. The Participant shall not assign (except in accordance with
Section 10 hereof) any part of this Agreement without the prior express written consent of the Corporation. 

18.    HEADINGS. The titles and headings of the various sections of this
Agreement have been inserted for convenience of reference only and shall not be deemed to be a part of this Agreement. 

19.    COUNTERPARTS. This Agreement may be executed in one or more
counterparts, each of which shall be deemed to be an original, but all of which shall constitute one and the same instrument. 

20.    SEVERABILITY. The invalidity or unenforceability of any provisions
of this Agreement in any jurisdiction shall not affect the validity, legality or enforceability of the remainder of this Agreement in such jurisdiction or the validity, legality or enforceability of any provision of this Agreement in any other
jurisdiction, it being intended that all rights and obligations of the parties hereunder shall be enforceable to the fullest extent permitted by law. 

21.    ACQUIRED RIGHTS. The Participant acknowledges and
agrees that: (a) the Corporation may terminate or amend the Plan at any time; (b) the award of the RSUs made under this Agreement is completely independent of any other award or grant and is made in the Discretion of the Corporation;
(c) no past grants or awards (including, without limitation, the RSUs awarded hereunder) give the Participant any right to any grants or awards in the future whatsoever; and (d) any benefits granted under this Agreement are not part of the
Participant’s ordinary salary or compensation, and shall not be considered as part of such salary or compensation in the event of or for purposes of determining the amount of or entitlement to severance, redundancy or resignation or benefits
under any employee benefit plan. 
 22.    RESTRICTIVE COVENANTS;
COMPENSATION RECOVERY. By signing this Agreement, Participant acknowledges and agrees that this Award or any Award previously granted to Participant by the Corporation or a Subsidiary shall be subject to
forfeiture as a result of the Participant’s violation of any agreement with the Corporation regarding non-competition, non-solicitation, confidentiality, inventions
and/or other restrictive covenants (the “Restricted Covenant Agreements”). For avoidance of doubt, compensation recovery rights to shares of Common Stock (including such shares acquired under previously granted equity
awards) shall extend to the proceeds realized by the Participant due to the sale or other transfer of such shares. The Participant’s prior execution of the Restricted Covenant Agreements was a material inducement for the Corporation’s
grant of this Award. 
 23.    CODE
SECTION 409A. It is intended that this Award be exempt from or comply with Section 409A of the Code and this Agreement shall be interpreted and administered in accordance
such intent; provided, however, that in no event shall the Corporation or any Subsidiary be liable for any additional tax, interest or penalty imposed upon or other damage suffered by the Participant on account of this Award being
subject to but not in compliance with Section 409A of the Code. 
 SIGNATURE PAGE FOLLOWS

  
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	 GENTHERM
INCORPORATED

 
			
		
	By:	 	 
		
	Name:	 	 
		
	Title:	 	 
		
	Dated:	 	 

 PARTICIPANT ACKNOWLEDGES AND AGREES THAT NOTHING IN THIS RESTRICTED STOCK UNIT AWARD AGREEMENT, NOR IN THE
CORPORATION’S 2013 EQUITY INCENTIVE PLAN, WHICH IS INCORPORATED INTO THIS AGREEMENT BY REFERENCE, CONFERS ON PARTICIPANT ANY RIGHT WITH RESPECT TO CONTINUATION AS AN EMPLOYEE OF THE CORPORATION OR ANY PARENT OR ANY SUBSIDIARY OR AFFILIATE OF
THE CORPORATION, NOR INTERFERES IN ANY WAY WITH PARTICIPANT’S RIGHT OR THE CORPORATION’S RIGHT TO TERMINATE PARTICIPANT’S EMPLOYMENT WITH THE CORPORATION OR ANY PARENT OR ANY SUBSIDIARY OR AFFILIATE OF THE CORPORATION AT ANY TIME,
WITH OR WITHOUT CAUSE AND WITH OR WITHOUT PRIOR NOTICE. 
 BY ACCEPTING THIS AGREEMENT, PARTICIPANT ACKNOWLEDGES RECEIPT OF A COPY OF THE PLAN AND
REPRESENTS THAT THE PARTICIPANT IS FAMILIAR WITH THE TERMS AND PROVISIONS OF THE PLAN. PARTICIPANT ACCEPTS THE RESTRICTED STOCK UNITS SUBJECT TO ALL OF THE TERMS AND PROVISIONS OF THIS AGREEMENT. PARTICIPANT HAS REVIEWED THE PLAN AND THIS
AGREEMENT IN THEIR ENTIRETY. PARTICIPANT AGREES TO ACCEPT AS BINDING, CONCLUSIVE AND FINAL ALL DECISIONS OR INTERPRETATIONS OF THE COMMITTEE UPON ANY QUESTIONS ARISING UNDER THE PLAN OR THIS AGREEMENT. 

 

			
		
	By:	 	 
		
	Name:	 	 
		
	Dated:	 	 

  

  
 5EX-10.4

 Exhibit 10.4 

SEPARATION AGREEMENT 

This SEPARATION AGREEMENT (this “Agreement”), is entered into as of December 11, 2018 (the “Effective
Date”) by and between Barry G. Steele (“Steele”) and Gentherm Incorporated, a Michigan corporation (“Gentherm”). 

Recitals 

A.    Steele has been an employee of Gentherm since 2004, holding the office of Vice-President of Finance and Chief
Financial Officer (“CFO”) since his hire date and Treasurer since 2005. 
 B.    Steele and
Gentherm have agreed that Steele’s tenure as Vice-President of Finance, CFO and Treasurer will end on the date (the “Transition Date”) of the appointment of a new CFO of Gentherm by the Gentherm Board of Directors (the
“Board”). Upon the Board’s request, Steele has agreed to provide transition services to Gentherm as a Vice President (but not an executive officer) of the Company after the Transition Date for a period of time thereafter
ending as set forth in Section 1 hereof. 
 C.    In consideration of Steele’s service to
Gentherm for the Remaining Employment Period (as defined in Section 2(a) hereof), Gentherm has agreed to make the payments and provide the benefits to Steele described in this Agreement, subject to the terms and conditions
herein. 
 NOW, THEREFORE, the parties agree as follows: 

1.    Separation of Employment. Steele’s employment with Gentherm will terminate no earlier than 30
days after the Transition Date and no later than February 15, 2019, on an exact date to be determined by the Chief Executive Officer of Gentherm (the “CEO”) in his sole discretion (the “Separation
Date”); provided, however, that Gentherm may terminate Steele for Cause (as defined in Section 8 hereof) at any time and without notice. Except as set forth in the prior sentence, the CEO must provide written notice of the
Separation Date to Steele at least 30 days prior to the Separation Date; provided, if there is no written notice provided prior to termination by Gentherm (including in the event Steele’s employment terminates on February 15, 2019 pursuant
to the first sentence of this Section 1 without Steele having received notice), then for purposes of determining the further rights and benefits accruing to Steele under Sections 2 and 3 hereof, the Separation Date shall be deemed to be
the earlier of 30 days after Steele’s actual termination date and February 15, 2019. If Steele’s employment with Gentherm is terminated at any time either by Gentherm for Cause or due to Steele’s resignation, the provisions of
Section 8 shall apply and Steele shall not be entitled to any of the rights and benefits under Section 2 and 3 hereof that have not already been paid, except as required by law. 

  
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 2.    Continuation of Salary, Bonus and Benefits; Duties.

  

	 	a.	 From the Effective Date through and including the Separation Date (the “Remaining Employment
Period”), Steele will continue to receive his current salary and automobile allowance, payable in accordance with the Company’s normal payroll practices. During the Remaining Employment Period, Steele also will be eligible to
receive bonus payments pursuant to the Gentherm Incorporated Performance Bonus Plan (the “Bonus Plan”); provided, however, that regardless of whether the Separation Date is before or after December 31, 2018, (a) Steele
will be eligible for a bonus under the Bonus Plan for the calendar year 2018, subject to the other terms and conditions of the Bonus Plan, which shall be payable at the time provided in the Bonus Plan, and (b) Steele will not be eligible to
receive any bonus under the Bonus Plan for calendar year 2019. During the Remaining Employment Period, Steele will continue to receive the employee health and welfare benefits he receives from Gentherm as of the Effective Date; provided, that,
except as set forth in Section 3 hereof, Steele agrees that his right to participate in such employee health and welfare benefit plans will cease on the Separation Date. 

 

	 	b.	 During the Remaining Employment Period, Steele shall devote his working time, efforts and skills as is
reasonably necessary to assist Gentherm and its new CFO in the transitioning of the new CFO to such role (the “Transition Services”). Steele shall provide the Transition Services at the Company’s headquarters in
Northville, Michigan or such other location as mutually agreed upon by Steele and Gentherm. Steele shall be available during normal business hours to provide Transition Services and to assist, advise and counsel the new CFO as may be reasonably
requested. 

 3.    Transition and Separation Benefits. On the date that that Gentherm
publicly announces that Steele will be replaced as the CFO of Gentherm (the “Announcement Date”), Steele is entitled to receive payment for any accrued but unused vacation time through the Announcement Date, and at the
Separation Date, Steele is entitled to receive payment for any accrued but unused vacation time during the period from the Announcement Date through the Separation Date (“Accrued Vacation”). At the Separation Date, Steele is
entitled to receive any accrued but unpaid salary through the Separation Date (“Accrued Wages”). In recognition of Steele’s many years of service to Gentherm, and in consideration of and conditioned upon Steele’s
continued service through the Separation Date and his obligations under this Agreement, Gentherm has agreed to make the following additional separation payments and provide the following additional separation benefits to Steele (the
“Separation Benefits”), subject to the conditions set forth herein: 
  

	 	a.	 Cash Payment. Gentherm shall pay Steele $642,720 in cash (the “Severance
Payment”) if Steele has, in accordance with Section 5 hereof, executed and delivered to Gentherm the Release (defined below in Section 5 hereof) and the Release has become irrevocable prior to such date of payment. The
Severance Payment, if due under the preceding sentence, shall be paid by Gentherm as soon as reasonably practical after the Release has been executed and delivered and becomes irrevocable, but not later than March 15, 2019. For clarity, if the
Release has not been executed and delivered and become irrevocable before March 15, 2019, Steele shall not be entitled to receive and shall not be paid the $642,720 cash payment. 

  
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	 	b.	 Incentive Equity. As of the Announcement Date, (i) 9,398 shares of restricted stock of Gentherm granted
to Steele on October 3, 2017 and issued under the Gentherm Incorporated 2013 Equity Incentive Plan (the “2013 Equity Plan”) shall vest immediately and no longer be subject to the restrictions set forth in the applicable
award agreement, and (ii) the portion of restricted stock and options to purchase Gentherm common stock (“Options”) granted to Steele under the 2013 Equity Plan that are scheduled to vest in February 2019 (the
“February 2019 Equity”) shall vest immediately and no longer be subject to the restrictions set forth in the applicable award agreement and shall be immediately exercisable, and such Options, along with any other vested
Options to purchase Gentherm common stock held by Steele on the Announcement Date (collectively, all vested Options held by Steele on the Announcement Date after the vesting of the February 2019 Equity are referred to as “Outstanding
Options”) are automatically amended so that they may be exercised by Steele at any time through the stated expiration date of each such Outstanding Option as set forth in the applicable award agreement. For clarity, the February 2019
Equity consists of: 

  

	 	•	 	 9,000 Options with an exercise price of $38.05 per share; 

 

	 	•	 	 7,500 Options with an exercise price of $40.64 per share; 

 

	 	•	 	 7,500 Options with an exercise price of $41.69 per share; and 

 

	 	•	 	 7,083 shares of restricted stock. 

Gentherm and Steele hereby agree that Steele may sell any or all of his shares of Gentherm common stock at any time subject to compliance
with applicable law and subject to Section 9 hereof. 
  

	 	c.	 COBRA. Subject to Steele’s timely election of continuation coverage under the Consolidated Omnibus
Budget Reconciliation Act (“COBRA”), during the COBRA Subsidy Period (as defined below), Gentherm will pay Steele’s health insurance coverage to the same extent that Gentherm paid for such coverage immediately prior to
the Separation Date, in a manner intended to avoid any excise tax under Section 4980D of the Internal Revenue Code of 1986, as amended, subject to the eligibility requirements and other terms and conditions of such insurance coverage. The
“COBRA Subsidy Period” shall begin on the Separation Date and end upon the earliest of: (i) a date that is twelve months following Separation Date; (ii) the date the Steele is no longer eligible to receive COBRA
coverage; and (iii) the date on which the Steele otherwise becomes eligible to receive substantially similar coverage from another employer. Steele agrees to notify Gentherm within five (5) calendar days of becoming eligible to receive
substantially similar coverage from another employer. Following the expiration of the COBRA Subsidy Period, Steele may elect to continue COBRA coverage for the remainder of the COBRA eligibility period as defined by law, if any, at Steele’s own
expense. In no event will Gentherm be obligated to pay any portion of Steele’s COBRA coverage premiums for a period beyond the COBRA Subsidy Period. Gentherm reserves the right to modify or terminate Gentherm’s payment toward the cost of
the premium for COBRA coverage provided hereunder to the extent necessary to comply with applicable law. 

  
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	 	d.	 Outplacement Services. Gentherm will pay up to $10,000 for outplacement services for the benefit of
Steele through an outplacement firm selected by Steele (the “Outplacement Firm”), provided Steele submits appropriate documentation to enable Gentherm to pay such Outplacement Firm directly. Gentherm’s obligation to pay
for any outplacement costs for the benefit of Steele will expire on the earlier of (i) December 31, 2019 or (ii) the date on which Steele has accepted other employment, in each case regardless of whether the entire $10,000 amount
referred to above has been spent. 

 Steele is responsible for the payment of all taxes on all of the Separation Benefits and other
compensation provided to him in this Agreement. All of the payments and benefits described above to be made or provided to or for the benefit of Steele (including accelerated vesting of restricted stock and any exercise of Options) will be subject
to withholding of taxes and other lawful deduction, as well as reporting on a W-2 under applicable law. Cash payments hereunder may be reduced by withholding tax owing on such payments and by withholding tax
owing on any non-cash benefits hereunder (including accelerated vesting of restricted stock and any exercise of Options). If at the time withholding tax is owing on such
non-cash benefits there is then payable hereunder to Steele either no or insufficient cash to cover the withholding tax on such cash and on such non-cash benefits, then
Steele shall immediately make a cash payment to the Company in an amount equal to the deficiency. 

4.    Other Separation Date Matters. On or before the Separation Date, Steele will deliver to Gentherm all
Gentherm-owned property in his possession or in his control, including but not limited to any documents, data, property and other materials, in whatever form, that he received, created or compiled during his employment with Gentherm (the
“Gentherm Owned Property”) and he hereby confirms that he (or anyone on his behalf) has not and will not retain any copies thereof. Steele will submit to Gentherm a request for reimbursement of all business expenses relating
to his employment no later than 30 days after the Separation Date; such expenses will subject to and paid in accordance with Gentherm’s business expense reimbursement policy and the provisions of this Agreement. 

5.    Release Condition. It is a condition of Gentherm’s obligations to provide the Separation Benefits
not yet provided (and it is a condition of Steele’s right to retain Separation Benefits previously provided) that Steele sign and deliver to Gentherm on or within 10 days after the Separation Date (but in no event prior to the Separation Date)
the Release attached to this Agreement as Exhibit A (the “Release”) and that Steele does not revoke such Release. Steele understands and agrees that Gentherm has expressly informed him that Gentherm
would not have agreed to provide any of the Separation Benefits absent Steele’s execution of both this Agreement and the Release. If Steele fails to sign and deliver the Release to Gentherm within 10 days after Separation Date, or delivers the
Release but revokes it within the time period permitted for revocation in the Release, then none of the Separation Benefits shall have been earned by Steele and, in the event any of the Separation Benefits have already been paid to him at such time,
Steele shall be obligated to promptly refund or reimburse Gentherm for such Separation Benefits 

  
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(including the repayment of pre-tax gross proceeds from any sale of Gentherm common stock that vested or otherwise remained outstanding in accordance with
Section 3(b) hereof) and Gentherm shall be authorized to immediately terminate any outstanding equity awards under the 2013 Equity Plan and to take any reasonably related actions to effectuate its rights hereunder; provided, that “gross
proceeds” for an Option will be calculated less the exercise price of such Option, on a pre-tax basis. 

6.    Confidential Information. Steele acknowledges that he remains bound by and agrees that he will comply
in all respects with all confidentiality agreements that he signed during his employment with Gentherm, or any policies and procedures of Gentherm relating to confidentiality by employees or officers in effect as of the Effective Date, including the
Confidential Information and Inventions Assignment Agreement dated as of October 3, 2017 (the “Confidentiality Agreement”), and Steele acknowledges that his obligations under such confidentiality agreements, policies and
procedures will continue after his employment with Gentherm ends. Steele acknowledges and agrees that Gentherm has invested considerable amounts of time and money in attaining and developing all of the confidential or proprietary information, and
any unauthorized disclosure or release of such information in any form would irreparably harm Gentherm. 

7.    Restrictive Covenants; Non-Disparagement. Steele acknowledges
that he remains bound by and agrees that he will continue to comply in all respects with all restrictive covenants that he was subject to (whether by written agreement with Gentherm or Gentherm policy) during his employment with Gentherm in effect
as of the Effective Date, and Steele acknowledges that his obligations under such restrictive covenants will continue after his employment with Gentherm ends. From the Effective Date through and including the second anniversary of the Separation
Date, Steele shall not engage in any defamatory, slandering or maliciously disparaging statements or other communications (whether in written or oral form) or conduct against Gentherm or any of its subsidiaries or affiliates or any of their
respective employees, officers, directors, advisors or consultants, which includes, but is not limited to, disparaging text messages, e-mail communications and comments or postings on blogs, comment boards,
and social media networking websites. Further, Steele shall not make any statements, comments or other communications concerning the foregoing parties or their respective products and services to the press, media other similar entity or
organization. 
 8.    Termination for Cause or Voluntarily. If, at any time after the Effective Date
Steele’s employment with Gentherm is terminated by the Board for Cause or Steele voluntarily resigns from his employment with Gentherm (a) he will not receive any compensation or benefits set forth in Sections 2 and 3 hereof, except
(i) to the extent Gentherm has already paid such compensation or benefits at the time of such termination (such as, for example, in the case where such termination occurs after the Announcement Date and Steele has already received the Accrued
Vacation through the Announcement Date and acceleration of the February 2019 Equity) and (ii) that Gentherm shall make payment of the Accrued Wages and Accrued Vacation through the date of his termination and reimburse Steele for all business
expenses relating to his employment that are submitted to Gentherm within 30 days after the date of his termination, subject to and paid in accordance with Gentherm’s business expense reimbursement policy and this Agreement, and
(b) excluding Sections 2 and 3 hereof, the provisions of this Agreement, including, without limitation, the provisions of Section 7 above, will remain in full force and effect (with any 

  
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reference to Separation Date to refer to the date of termination). As used in this Agreement, “Cause” means (i) gross or willful misconduct in the performance of
Steele’s duties, (ii) fraud of any kind, or (iii) gross insubordination with respect to directions from the CEO or the Board with respect to otherwise executing the duties and responsibilities as the CFO and Treasurer of Gentherm
(through the Transition Date) or a Vice President of Gentherm (through the Separation Date), based on historical practice or as set forth in any policy or procedure as of the Effective Date or otherwise required by law; provided, however, that for
purposes of this proviso (iii), Steele must first be given written notice and not less than 15 days to cure such insubordination before such conduct shall qualify as a termination for Cause. 

9.    Clawback Policy / Insider Trading Policy. Steele acknowledges that some of the payments required to be
made to him under this Agreement are subject to the Gentherm Incorporated Compensation Clawback Policy. Steele has had an opportunity to review such policy and has previously signed an acknowledgement of the policy terms. Steele also acknowledges
that he is currently subject to the Restated Statement of Policy for Securities Trading by Company Personnel and that he will continue to be subject to such policy for so long as he meets the definition of “Persons Subject to This Policy
Statement” therein; provided, such policy will be applied to Steele in the same manner as applied to the executive officers of the Gentherm. 

10.    No Representation. Steele represents and acknowledges that, in executing this Agreement, Steele does
not rely and has not relied on any representation or statement by Gentherm or any agents or representatives of Gentherm with regard to the subject matter, basis or effect of this Agreement that is not set forth in this Agreement. 

11.    Binding Agreement. Steele represents and warrants that the execution, delivery and performance of
this Agreement will not (and with the giving of notice or lapse of time, or both, would not) result in the breach of any agreement or other obligation to which he is a party or is otherwise bound. This Agreement shall be binding upon Steele and
Steele’s heirs, administrators, representatives, executors, successors and assigns, and shall inure to the benefit of Gentherm and its directors, officers, representatives, successors and assigns. 

12.    Governing Law and Interpretation. This Agreement is made and entered into in the State of Michigan,
and shall in all respects be interpreted, enforced and governed under the laws of the State of Michigan without regard to its choice of law or conflict of laws provision or rule (whether the State of Michigan or any other jurisdiction). The language
of all parts of this Agreement shall in all cases be construed as a whole, according to its fair meaning, and not strictly for or against any of the parties. In the event of a breach of any provision of this Agreement, either party may institute an
action specifically to enforce any term or terms of this Agreement and/or to seek any damages for breach. Should any term, condition, provision or covenant of this Agreement be declared illegal or unenforceable by any court of competent jurisdiction
and cannot be modified to be enforceable, excluding the general release language, such term, condition, provision or covenant shall immediately become null and void, leaving the remainder of this Agreement in full force and effect. 

13.    Amendment. This Agreement may not be modified, altered or changed except in writing and signed by
both Steele and Gentherm (with express approval of the Gentherm Board) wherein specific reference is made to this Agreement. 

  
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 14.    Notices. Any notice or other communication required
or permitted to be given under this agreement will be sufficient if it is in writing, sent to the applicable address set forth below (or as otherwise specified by a party by notice to the other party in accordance with this Section 14) and
delivered personally, by certified or registered mail or by recognized overnight courier, or delivered by e-mail coupled with confirmation of actual receipt: 

If to Gentherm, to the address set forth below: 

Gentherm Incorporated 
 Attention:
Vice-President and General Counsel 
 21680 Haggerty Rd. 

Northville, MI 48167 
 If to
Steele, at the last known address in Gentherm’s payroll records. 
 15.    Entire Agreement. This
Agreement, together with the Release, sets forth the entire agreement between the parties, and fully supersedes any and all prior agreements or understandings between the parties pertaining to the subject matter of the Agreement, except that any
other agreements that Steele entered into with Gentherm that pertains to confidentiality, non-disclosure, non-solicitation, and/or
non-competition, including, without limitation, the Confidentiality Agreement, remain in full force and effect. 

16.    Support. Steele warrants and agrees that he will not, directly or indirectly, challenge and/or
dispute the enforceability and/or validity of this Agreement, or any portion thereof. Steele further agrees and warrants that he will not, and has not, directly or indirectly, instigate(d), incite(d), encourage(d) and/or otherwise cause(d) or
aid(ed) any person and/or entity to bring any claim and/or action which challenges and/or disputes the enforceability and/or validity of this Agreement, including any portion thereof. Steele further agrees that in the event that any such claim,
action and/or challenge is brought, he will support, advocate for and agree with the enforceability and validity of this Agreement, and will cooperate with Gentherm in defending against any such claim, action and/or challenge. 

17.    Cooperation. During and after the Remaining Employment Period, Steele shall cooperate with Gentherm
with respect to any claim or matter and shall make himself available to consult with counsel or serve as a witness in any action, investigation or other proceeding before any court, governmental agency, arbitrator or mediator, in which he may be
called to appear by Gentherm, regarding any business, property or operations of Gentherm or any of its affiliates or subsidiaries, and he shall truthfully testify in any such action, proceeding or deposition in which he also appears. Upon request by
Steele and prior approval by Gentherm, Gentherm shall reimburse Steele for reasonable travel expenses incurred by Steele in connection with any such appearance in which Steele is so called to appear. 

18.    Waiver of Breach. The waiver by a party of any breach of any provision of this Agreement by the other
party shall not operate or be construed as a waiver of any subsequent breach of the same or any other provision hereof by that party. 

  
 7 

 19.    Counterparts. This Agreement may be executed in one
or more counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same agreement. 

20.    Code Section 409A.
  

	 	a.	 Gentherm and Steele intend that any amounts or benefits to be paid or provided under this Agreement be exempt
from or comply with the provisions of Section 409A of the Internal Revenue Code and the Treasury Regulations and other guidance relating thereto (“Code Section 409A”)
so that Steele is not subject to additional tax or other sanctions under Code Section 409A. The provisions of this Agreement shall be interpreted in a manner consistent with such intent. In furtherance thereof, to the extent that any provision
hereof would otherwise result in Steele being subject to additional tax or other sanctions under Code Section 409A, if and to the extent permissible under Code Section 409A, Gentherm and Steele agree to amend this Agreement in a manner
that brings this Agreement into compliance with Code Section 409A and preserves to the maximum extent possible the economic value of the relevant payment or benefit under this Agreement to Steele. Notwithstanding the foregoing, no particular
tax result for Steele with respect to any income recognized by him in connection with this Agreement is guaranteed, and Steele alone will be solely responsible for any additional taxes or other sanctions imposed on him under or as a result of Code
Section 409A in connection with this Agreement. 

  

	 	b.	 With respect to any amount of expenses eligible for reimbursement under this Agreement, such expenses will be
reimbursed by Gentherm no later than December 31st of the year following the year in which Steele incurs the related expenses. In no event will the amount of expenses eligible for reimbursement, or in-kind
benefits to be provided, by Gentherm in one calendar year affect the amount of expenses eligible for reimbursement, or in-kind benefits to be provided, in any other calendar year, nor will Steele’s right
to reimbursement or in-kind benefits be subject to liquidation or exchange for another benefit. 

  

	 	c.	 If any amount payable under this Agreement is subject to Code Section 409A and is payable upon, on account
of or as a result of termination of Steele’s employment with Gentherm, notwithstanding any other provision of this Agreement such amount (if otherwise payable before the earlier of the dates set forth in the following clauses (i) and (ii))
shall be paid on the earlier of (i) the date that is six months and one day after Steele’s “separation from service” (within the meaning of Code Section 409A), or (ii) the date of Steele’s death, but only to the
extent such delay is necessary to prevent Steele from incurring additional tax on and/or other sanctions in respect of such payment under Code Section 409A. 

  
 8 

 Gentherm and Steele knowingly and voluntarily sign this Agreement as of the date(s) set
forth below: 
  

									
				
	DATED:	 	December 11, 2018	 		 	/s/ Barry G. Steele
		 		 		 	BARRY G. STEELE
				
		 		 		 	GENTHERM INCORPORATED
					
	DATED:	 	December 11, 2018	 		 	By:	 	/s/ Phillip M. Eyler
		 		 		 	Name:	 	Phillip M. Eyler
		 		 		 	Its:	 	President and Chief Executive Officer

  

  
 9 

 EXHIBIT A 

FORM OF RELEASE 

This document constitutes the Release contemplated by Separation Agreement between Barry G. Steele (“Employee”) and Gentherm
Incorporated (“Gentherm”) dated as of _______________, 2018 (the “Separation Agreement”). All capitalized terms utilized but not otherwise defined herein shall have the meanings ascribed to them in Separation Agreement. Pursuant
to this Release, Employee hereby acknowledges and promises to Gentherm as follows: 
  

	 	1.	 Separation of Employment. Employee acknowledges that his employment with Gentherm ended on
________________ (“Separation Date”). 

  

	 	2.	 Payment of Moneys Owed. Employee acknowledges that, excluding the amounts expressly set forth in the
Separation Agreement which, by their terms, are to be paid after the date hereof, Gentherm has paid all remuneration owed to him as a result of his employment with Gentherm. 

 

	 	3.	 Consideration. Employee is giving the promises set forth in this Release as consideration for
Gentherm’s promises, amounts, payments, benefits and privileges in the Separation Agreement which are contingent upon Employee’s promises in this Release, including the general release of claims. Employee agrees that such amounts,
payments, benefits and privileges specified in the Separation Agreement are in excess of any amounts, payments, benefits and privileges to which he is entitled. Employee also agrees that the amounts, payments, benefits and privileges described in
the Separation Agreement are independent and adequate consideration for his release of all claims and rights specified herein and any other obligations set forth in this Release or the Separation Agreement. 

 

	 	4.	 Complete Release of All Claims. Employee, on behalf of himself and all of his heirs, assigns, proxies
and/or attorneys in fact, hereby knowingly and voluntarily releases and forever discharges Gentherm and its current and former parents, subsidiaries and affiliates, predecessors, successors and assigns and each of its and their respective directors,
officers, attorneys, agents, representatives and employees, individually and in their business capacities, and its and their employee benefit plans and programs and their administrators and fiduciaries (all of which shall be given its broadest
interpretation, and collectively referred to as “Releasees”) from any and all claims and causes of action, whether now known or unknown, of whatever kind or nature, based on any act, omission, event, occurrence, or nonoccurrence
from the beginning of time to the date of execution of this Release, including, but not limited to, claims that arise out of or in any way relate to Employee’s employment or separation from employment with Gentherm. Employee acknowledges and
agrees that this general release includes, but is not limited to, claims of breach of implied or express employment contracts or covenants, promissory estoppel, entitlement to any pay (other than the amounts promised in the Separation Agreement),
defamation, wrongful termination, public 

  
 A-1 

	 	
policy violations, emotional distress and related matters, claims of discrimination, harassment, or retaliation under federal, state or local laws, and claims based on any federal, state or other
governmental statute, regulation or ordinance, including, but not limited to, Title VII of the Civil Rights Act of 1964 (“Title VII”); Sections 1981 through 1988 of Title 42 of the United States Code; The Employee Retirement
Income Security Act of 1974 (“ERISA”) (as modified below); The Immigration Reform and Control Act; the Americans with Disabilities Act (“ADA”); the Equal Pay Act (“EPA”); the Age Discrimination in
Employment Act (“ADEA”); the Rehabilitation Act of 1973; the Older Workers Benefit Protection Act; The Worker Adjustment and Retraining Notification Act; the Family and Medical Leave Act (“FMLA”); The Fair Credit
Reporting Act; The Genetic Information Nondiscrimination Act of 2008; Michigan’s Elliott-Larsen Civil Rights Act; the Michigan Persons with Disabilities Civil Rights Act; the Michigan Whistleblowers’ Protection Act; Michigan’s
Bullard-Plawecki Right to Know Act; Michigan Statutory Provision Regarding Retaliation/Discrimination for Filing a Worker’s Compensation Claim; the Michigan Payment of Wages and Fringe Benefits Act; the Michigan Minimum Wage Law; the Michigan
Equal Pay Law; and any other federal, state, or local laws, or regulations, or any common law actions, relating to Employee’s employment that Employee may have against Gentherm or any of the Releasees as of the date hereof, and/or any type of
damages, wages, bonuses, commissions, benefits, attorney fees, costs or relief of any type (legal, equitable or otherwise). If any claim is not subject to release, to the extent permitted by law, Employee waives any right or ability to be a class or
collective action representative or to otherwise participate in any putative or certified class, collective or multi-party action or proceeding based on such a claim in which Gentherm or any other Releasee identified in this Release is a party.

  

	 	5.	 Claims Not Released. Employee is not waiving any rights Employee may have to: (a) Employee’s
own vested accrued employee benefits under the applicable health, welfare, or retirement benefit plans as of the Separation Date, the rights to which are governed by the terms of the applicable plan documents; (b) benefits and the right to seek
benefits under applicable workers’ compensation and unemployment compensation statutes; (c) pursue claims that by law cannot be waived by signing this Release, including but not limited to filing a charge with the Equal Employment
Opportunity Commission (“EEOC”), the National Labor Relations Board (“NLRB”) or other governmental or administrative agency or from participating in any investigation, hearing or proceeding of the EEOC, the NLRB or
other governmental or administrative agency; provided, however, to the maximum extent permitted by law, Employee agrees that if such an administrative claim is made, Employee shall not be entitled to recover any individual monetary relief or other
individual remedies, other than any monetary award offered by the Securities and Exchange Commission (“SEC”) pursuant to Section 21F of the Securities Exchange Act of 1934, as amended; (d) enforce the Separation Agreement;
(e) claims that may arise after he signs this Release; (f) challenge the validity or enforceability of this Release under the ADEA, as amended by the Older Workers Benefit Protection Act of 1990 (“OWPBA”), or (g) any claim
for indemnification arising under the Company’s organizational documents. 

  
 A-2 

	 	6.	 No Representation. Employee represents and acknowledges that in executing this Release, Employee does
not rely and has not relied on any representation or statement by any of the Releasees or by any of the Releasees’ agents or representatives with regard to the subject matter, basis or effect of this Release that is not reflected herein.

  

	 	7.	 Acknowledgments. 

i.      Employee affirms that Employee has not filed, has not caused to be filed, and is not presently is a party
to any claim against Gentherm. 
 ii.     Employee affirms that Employee has no known workplace injuries or
occupational diseases arising out of Employee’s employment with Gentherm for which he has not already filed a claim. 

iii.    Employee affirms that Employee has been granted any leave to which Employee was entitled under the Family and
Medical Leave Act or related state or local leave or disability accommodation laws, and has not been subjected to any improper treatment, conduct or actions due to or related to his request for, or taking of, any such leave of absence. 

iv.     Employee affirms that all of Gentherm’s decisions regarding Employee’s pay and benefits through the
date of Employee’s execution of this Release were not discriminatory based on age, disability, race, color, sex, religion, national origin or any other classification protected by law. 

v.      Employee represents and warrants that prior to signing this Release, Employee has disclosed to the Board
of Directors of Gentherm any belief or information Employee may have that Gentherm has engaged in any unlawful activity of any kind. 

vi.     Employee affirms that Employee has not been retaliated against for reporting any allegations of wrongdoing by
Gentherm or its officers, directors or employees including any allegations of corporate fraud. 
 vii.    Employee
represents and warrants that he has the sole right, title and interest in the claims released in this Release, and that he has not assigned or transferred, to any person, any claim intended to be released under this Release. 

 

	 	8.	 Non-Admission of Liability. This Release does not constitute an
admission that any Releasee has violated any law, rule, regulation, contractual right or any other duty or obligation. 

  

	 	9.	 Voluntary Agreement; ADEA Notice. Employee understands that this Release includes a release of all
claims, known and unknown, that Employee has or may have against the Releasees, including all claims arising under the ADEA. Employee acknowledges that Employee has been advised in writing to consult with an

  
 A-3 

	 	
attorney before Employee signs this Release. Employee acknowledges and agrees that Employee was provided with a copy of this Release on December 11, 2018 and was thereafter provided with at
least twenty-one (21) days within which to decide whether to sign this Release. If Employee does sign this Release, Employee understands that he will have seven (7) days after he signs to change
Employee’s mind and revoke the Release, in which case a written notice of revocation must be delivered to Vice-President and General Counsel, Gentherm Incorporated, 21680 Haggerty Rd., Northville, MI 48167, on or before the seventh (7th) day
after Employee’s execution of the Release. 

  

	 	10.	 Binding. This Release shall be binding upon Employee and his heirs, administrators, representatives,
executors, successors and assigns, and shall inure to the benefit of Releasees and each of them, and to their heirs, administrators, representatives, executors, successors, and assigns. 

 

	 	11.	 Governing Law. This Release shall in all respects be interpreted, enforced and governed under the laws
of the State of Michigan without regard to its choice of law or conflict of laws provision or rule (whether the State of Michigan or any other jurisdiction). The language of all parts of this Release shall in all cases be construed as a whole,
according to its fair meaning, and not strictly for or against any of the parties. 

  

	 	12.	 Severability. Should any term, condition, provision or covenant of this Release be declared or be
determined by any court to be illegal or invalid, the validity of the remaining terms, conditions, provisions or covenants shall not be affected, and said illegal or invalid term, condition, provision or covenant shall be deemed not to be part of
this Release. 

  

	 	13.	 Entire Agreement. This Release, together with the Separation Agreement and other agreements referenced
in Section 15 thereof, sets forth the entire agreement between the parties, and fully supersedes any and all prior agreements or understandings between the parties pertaining to the subject matter of such documents. 

 

	 	14.	 Acknowledgement. By signing below, Employee acknowledges and confirms that he: (a) has read this
Release in its entirety and understands all of its terms; (b) knowingly, freely, and voluntarily agrees to all of the terms and conditions set forth in this Release and intends to be bound legally by them; and (c) is signing this Release
in exchange for good and valuable consideration in addition to anything of value to which Employee is otherwise entitled. Employee further acknowledges and confirms that he may not execute and is not executing this Release until on or after the
Separation Date. 

  
 A-4 

 PLEASE READ CAREFULLY. THIS AGREEMENT INCLUDES A RELEASE OF ALL KNOWN AND UNKNOWN CLAIMS. 

EMPLOYEE FREELY AND KNOWINGLY, AND AFTER DUE CONSIDERATION, ENTERS INTO THIS RELEASE INTENDING TO WAIVE, SETTLE AND RELEASE ALL CLAIMS HE HAS OR MIGHT HAVE
AGAINST RELEASEES. 
  

							
				
	DATED:	 	 	 		 	 
	 	 	 	 	 	 	BARRY G. STEELE

  

  
 A-5

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