Document:

EX-10.1

 

Exhibit 10.1

AMERICAN STANDARD COMPANIES INC.

2002 OMNIBUS INCENTIVE PLAN

ADDENDUM FOR CANADA

This Addendum covers Options granted under the American Standard Companies Inc.
2002 Omnibus Incentive Plan (the “Plan”) to participants based in Canada. This
addendum does not cover other benefits under the Plan consisting of Stock
Appreciation Rights, Restricted Units, Restricted Stock, Long-Term Incentive
Awards or Annual Incentive Awards.

Options may be granted under this addendum to Participants based in Canada as
follows :

	1)	 	Notwithstanding any other provision of the Plan, any exchange of shares
of Common Stock by a Participant to pay the exercise price for Options
pursuant to Section 6.4 of the Plan shall be accomplished by such
Participant’s attestation that he or she has owned shares of Common Stock
being used to effect the transaction for at least six months (the
“Attestation Method”), rather than physically exchanging such shares to
pay for the Options. When the Attestation Method is used to pay the
exercise price for Options pursuant to Section 6.4, the total number of
shares that would otherwise have been received on the exercise of the
Option is reduced by the number of shares required to pay for the exercise
of the Option.
	 
	2)	 	Section 6.5 of the Plan shall not apply to Options granted to
Participants based in Canada.
	 
	3)	 	Notwithstanding any other provision of the Plan, any exchange of shares
of Common Stock by a Participant to pay taxes owed upon the exercise of
Options pursuant to Section 12.4 of the Plan shall be accomplished by such
Participant’s attestation that he or she has owned shares of Common Stock
being used to effect the transaction for at least six months (the
“Attestation Method”), rather than physically exchanging such shares to
pay the taxes. When the Attestation Method is used to pay taxes owed upon
the exercise of Options pursuant to Section 12.4, the total number of
shares that would otherwise have been received is reduced by the number of shares required to pay the taxes.

1EX-10.2

 

Exhibit 10.2

AMERICAN STANDARD COMPANIES INC.

STOCK INCENTIVE PLAN

ADDENDUM FOR CANADA

This Addendum covers Options granted under the American Standard Companies Inc.
Stock Incentive Plan (the “Plan”) to participants based in Canada. This
addendum does not cover other benefits under the Plan consisting of Stock
Appreciation Rights, Restricted Units or Restricted Stock.

Options may be granted under this addendum to Participants based in Canada as
follows :

	1)	 	Notwithstanding any other provision of the Plan, any exchange of shares
of Common Stock by a Participant to pay the exercise price for Options
pursuant to Section 6.4 of the Plan shall be accomplished by such
Participant’s attestation that he or she has owned shares of Common Stock
being used to effect the transaction for at least six months (the
“Attestation Method”), rather than physically exchanging such shares to
pay for the Options. When the Attestation Method is used to pay the
exercise price pursuant to Section 6.4, the total number of shares that
would otherwise have been received on the exercise of the Option is
reduced by the number of shares required to pay for the exercise of the
Option.

	2)	 	Section 6.6 of the Plan shall not apply to Options granted to
Participants based in Canada.

	3)	 	Notwithstanding any other provision of the Plan, any exchange of shares
of Common Stock by a Participant to pay taxes owed upon the exercise of
Options pursuant to Section 10.4 of the Plan shall be accomplished by such
Participant’s attestation that he or she has owned shares of Common Stock
being used to effect the transaction for at least six months (the
“Attestation Method”), rather than physically exchanging such shares to
pay the taxes. When the Attestation Method is used to pay taxes owed upon
the exercise of Options pursuant to Section 10.4, the total number of
shares that would otherwise have been received is reduced by the number of shares required to pay the taxes.

1EX-10.3:

 

Exhibit 10.3

Summary of Employment Arrangement with G. Peter D’Aloia

G. Peter D’Aloia serves as Senior Vice President and Chief
Financial Officer of the company.  Mr. D’Aloia’s employment agreement
dated December 3, 1999 provides that he will receive annually a stock
option grant covering at least 50,000 shares of the company’s common stock.
Due to an adjustment in the company’s general option grant practice,
Mr. D’Aloia received grants covering only 43,000 shares in February, 2003
and 36,000 shares in February, 2004.  Effective May 27, 2004, shareholders
approved a three-for-one-split of the company’s common stock and outstanding
stock options were adjusted accordingly. On July 7, 2004, the company
approved a special stock option grant to Mr. D’Aloia covering 28,000 shares,
to make up for his reduced grants in 2003 and 2004. This grant becomes
exercisable in its entirety on July 7, 2005 and has a term of eight years.
In addition, Mr. D’Aloia will receive a cash payment of approximately
$290,000 upon retirement, representing the difference in exercise price
between the July 7, 2004 grant and the earlier grants.EX-10.4:

 

Exhibit 10.4

Summary of Employment Arrangement with J. Paul
McGrath

J. Paul McGrath serves as Senior Vice
President, General Counsel &
Secretary of the company. Mr. McGrath’s employment agreement dated
December 17, 1999 provides that he will receive annually a stock
option grant covering at least 50,000 shares of the company’s common stock.
Due to an adjustment in the company’s general option grant practice,
Mr. McGrath received grants covering only 43,000 shares in
February, 2003 and 36,000 shares in February, 2004. Effective
May 27, 2004, shareholders approved a three-for-one-split of
the company’s common stock and outstanding stock options were
adjusted accordingly. On July 7, 2004, the company approved a
special stock option grant to Mr. McGrath covering 28,000 shares,
to make up for his reduced grants in 2003 and 2004. This grant
becomes exercisable in its entirety on July 7, 2005 and has a term
of eight years. In addition, Mr. McGrath will receive a cash
payment of approximately $290,000 upon retirement, representing
the difference in exercise price between the July 7, 2004
grant and the earlier grants.<PAGE>

                                                                    EXHIBIT 10.2

                               Robert E. Rossiter

                                LEAR CORPORATION
                         LONG-TERM STOCK INCENTIVE PLAN

                        PERFORMANCE SHARE AWARD AGREEMENT

      PERFORMANCE SHARE AWARD AGREEMENT (the "Agreement") dated as of June 22,
2004, between Lear Corporation (the "Company") and the individual whose name
appears on the signature page hereof (the "Participant"), who is a key employee
of the Company or an Affiliate. Any term capitalized herein, but not defined,
shall have the meaning set forth in the Lear Corporation Long-Term Stock
Incentive Plan (the "Plan").

1.    GRANT. In accordance with the terms of the Plan, the Company hereby grants
      to the Participant a Performance Share Award subject to the terms and
      conditions set forth herein.

2.    PERFORMANCE PERIOD. The Performance Period for this Award shall be the
      three-year period commencing on January 1, 2004 and ending on December 31,
      2006.

3.    PERFORMANCE MEASURES. There shall be two performance measures, Relative
      Return to Shareholders and Return on Invested Capital, as both are defined
      below.

      a.    Relative Return to Shareholders: This performance measure ranks the
            "Return to Shareholders" (as defined below) for the Company over the
            Performance Period in relation to the Return to Shareholders for the
            "Peer Group" (as defined below).

            i.    "Return to Shareholders" for each respective company shall
                  mean the quotient of (I) the sum of (a) the average closing
                  price, as reported on the exchange where the stock of the
                  relevant company is traded, for the five consecutive trading
                  days preceding January 1, 2007 and (b) the dividends declared
                  during the period commencing on January 1, 2004 and ending on
                  December 31, 2006, divided by (II) the average closing price,
                  as reported on the exchange where the stock of the relevant
                  company is traded, for the five consecutive trading days
                  preceding January 1, 2004.

            ii.   "Peer Group" shall mean Arvin Meritor, Dana Corp., Delphi,
                  Eaton Corp., Johnson Controls, Inc., Magna International,
                  Inc., and Visteon.

      b.    Return on Invested Capital: This performance measure is the
            compounded improvement on the Company's return on Invested Capital
            as reported to its shareholders for 2004, 2005, 2006 fiscal years or
            as otherwise approved by the Compensation Committee.

                                       1

<PAGE>

4.    PERFORMANCE GOALS.

      a.    Relative Return to Shareholders:

            i.    Threshold: The Company is ranked above the 42nd percentile.

            ii.   Target: The Company is ranked above the 57th percentile.

            iii.  Superior: The Company is ranked above the 85th percentile.

      b.    Return on Invested Capital:

            i.    Threshold: 3%* per year average

            ii.   Target: 5% per year average

            iii.  Superior: 7% per year average

            * If threshold payout is not achieved by meeting the 3% compounded
            annual growth, an opportunity exists to earn threshold payout if the
            % change in ROIC when compared to the Peer Group is above the 57th
            percentile.

5.    PERFORMANCE SHARES.

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

<TABLE>
<CAPTION>
                                                  Performance Shares
                        -------------------------------------------------------------------
Performance At          Relative Return to Shareholders          Return on Invested Capitol
--------------          -------------------------------          --------------------------
<S>                     <C>                                      <C>
Threshold                            2031                                   2031
Target                               4061                                   4061
Superior                             6092                                   6092
</TABLE>

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

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

                                AP - TP
               (TAS - TS)  x    -------
                                AP - TP

               TAS =       The Performance Shares for target.

               TS =        The Performance Shares for threshold.

                                       2

<PAGE>

               AP =        The Company's actual performance.

               TP =        The threshold performance goal.

               TAP =       The target performance goal.

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

                                AP - TAP
                 (SS - TAS)  x  --------
                                SP - TAP

                 SS =        The Performance Shares for superior.

                 TAS =       The Performance Shares for target.

                 AP =        The Company's actual performance.

                 TAP =       The target performance goal.

                 SP =        The superior performance goal.

      e.    If the Company's actual performance for performance measure exceeds
            "superior," the Performance Shares earned shall equal the
            Performance Shares for superior.

6.    TIMING AND FORM OF PAYOUT. Except as hereinafter provided, after the end
      of the Performance Period, the Participant shall be entitled to receive a
      number of shares of the Company's common stock, par value $.01 per share
      ("Common Stock"), equal to his total number of Performance Shares
      determined under Section 5. Delivery of such shares of Common Stock shall
      be made as soon as administratively feasible after the Committee certifies
      the actual performance of the Company during the Performance Period.
      Notwithstanding the foregoing, any delivery of shares of Common Stock
      under this Section may be irrevocably deferred by the Participant with the
      Committee's consent; provided, that the Participant's election to defer
      occurs prior to the expiration of the second year of the Performance
      Period. Notwithstanding anything herein to the contrary, the Committee may
      defer delivery of any shares of Common Stock to the Participant under this
      Section if the delivery of such shares of Common Stock would constitute
      compensation to the Participant that is not deductible by the Company or
      an Affiliate due to the application of Code Section 162(m); provided, that
      such shares of Common Stock deferred pursuant to this sentence shall be
      delivered to the Participant on or before the January 15 of the first year
      in which the Participant is no longer a "covered employee" of the Company
      (within the meaning of Code Section 162(m) following the end of the
      Performance Period or, if later, the deferred delivery date elected by the
      Participant in accordance with the preceding sentence.

7.    TERMINATION OF EMPLOYMENT DUE TO DEATH, RETIREMENT, OR DISABILITY. If a
      Participant ceases to be an employee prior to the end of the Performance
      Period by reason of death, retirement or disability, the Participant (or
      in the case of the Participant's death, the Participant's beneficiary)
      shall be entitled to receive shares of Common Stock equal to the number of
      shares of Common Stock the Participant would have been entitled to under

                                       3

<PAGE>

      Section 6 if he or she had remained employed until the last day of the
      Performance Period multiplied by a fraction, the numerator of which shall
      be the number of full calendar months during the period of January 1, 2004
      through the date of the Participant's employment terminated and the
      denominator of which shall be thirty-six. The delivery of such shares of
      Common Stock shall be made as soon as administratively feasible after the
      end of the Performance Period, whether or not the Participant had elected
      under Section 6 above to defer receipt of Common Stock deliverable under
      this Award.

      Any distribution made with respect to a Participant who has died shall be
      paid to the beneficiary designated by the Participant pursuant to Article
      11 of the Plan to receive the Participant's shares of Common Stock under
      this Award. If the Participant's beneficiary predeceases the Participant
      or no beneficiary has been properly designated, distribution of the
      Participant's shares of Common Stock under this Award shall be made to the
      Participant's surviving spouse and if none, to the Participant's estate.

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

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

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

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

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

13.   PARTICIPANT TO HAVE NO RIGHTS AS A STOCKHOLDER. The Participant shall not
      have any rights as a stockholder with respect to any shares of Common
      Stock subject to this Award prior to the date on which he or she is
      recorded as the holder of such shares of Common Stock on the records of
      the Company.

14.   NOTICE. Any notice or other communication required or permitted hereunder
      shall be in writing and shall be delivered personally, or sent by
      certified, registered or express mail, postage prepaid. Any such notice
      shall be deemed given when so delivered personally or, if mailed, three
      days after the date of deposit in the United States mail, in the case of
      the Company to 21557 Telegraph Road, Southfield, Michigan, 48034,
      Attention: Roger A.

                                       4

<PAGE>

      Jackson and, in the case of the Participant, to its address set forth on
      the signature page hereto or, in each case, to such other address as may
      be designated in a notice given in accordance with this Section.

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

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

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

                                                 LEAR CORPORATION

                            By: /s/ Roger A. Jackson
                                --------------------------------------------
                                           Roger A. Jackson

                            Its: Senior Vice President, Human Resources

                                 /s/ Robert E. Rossiter
                                 -------------------------------------------
                                       [Participant's Signature]

                            Participant's Name and Address for notices hereunder

                                               Robert E. Rossiter

                                      _______________________________________

                                      _______________________________________

                                      _______________________________________

                                       5

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