Back to top

LEAR CORPORATION LONG-TERM STOCK INCENTIVE PLAN FORM OF PERFORMANCE UNIT AWARD AGREEMENT

Performance Unit Award Agreement

LEAR CORPORATION
LONG-TERM STOCK INCENTIVE PLAN 

FORM OF PERFORMANCE UNIT AWARD AGREEMENT 
 | Document Parties: LEAR CORP You are currently viewing:
This Performance Unit Award Agreement involves

LEAR CORP

. RealDealDocs™ contains millions of easily searchable legal documents and clauses from top law firms. Search for free - click here.
Title: LEAR CORPORATION LONG-TERM STOCK INCENTIVE PLAN FORM OF PERFORMANCE UNIT AWARD AGREEMENT
Governing Law: Michigan     Date: 2/14/2007
Industry: Auto and Truck Parts     Sector: Consumer Cyclical

LEAR CORPORATION
LONG-TERM STOCK INCENTIVE PLAN 

FORM OF PERFORMANCE UNIT AWARD AGREEMENT 
, Parties: lear corp
50 of the Top 250 law firms use our Products every day
 

Exhibit 10.1

LEAR CORPORATION
LONG-TERM STOCK INCENTIVE PLAN

FORM OF PERFORMANCE UNIT AWARD AGREEMENT

          PERFORMANCE UNIT AWARD AGREEMENT (the “Agreement”) dated as of ___, 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 Unit Award subject to the terms and conditions set forth herein. Each Performance Unit shall have a notional value of $30.00, provided, however, that no amounts will be paid or payable hereunder unless the Participant earns Performance Units pursuant to Section 5 hereof.

          2. PERFORMANCE PERIOD. The Performance Period for this Award shall be the three-year period commencing on January 1, 2007 and ending on December 31, 2009.

          3. PERFORMANCE MEASURE. There shall be one performance measure, Earnings Growth, as defined below.

          “Earnings Growth” shall mean the compounded annual growth rate of the Company’s annual operating income during the 3-year Performance Period. Operating income shall mean the Company’s pretax income excluding the North American Interior business, interest expense, impairments, restructurings and other special items such as, among others: investment gains and losses; extraordinary, unusual or non-recurring items; gains or losses on the sale of assets; effects of changes in accounting principles or the application thereof; asset impairment charges; acquisitions, divestitures, or financing activities; recapitalizations, including stock splits and dividends; expenses for restructuring or productivity initiatives; and other non-operating items.

          4. PERFORMANCE GOALS.

     Earnings Growth:

 

i.

 

Threshold: 5% per year average growth

 

 

 

 

 

ii.

 

Target: 10% per year average growth

 

 

 

 

 

iii.

 

Superior: 15% per year average growth

 


 

 

          5. PERFORMANCE UNITS.

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

 

 

 

 

 

 

 

Number of Performance

 

Performance At

 

Units

 

 

 

Earnings Growth

 

Threshold

 

 

 

 

 

 

 

 

Target

 

 

 

 

 

 

 

 

Superior

 

 

 

 

 

 

 

 

               b. In the event that the Company’s actual performance does not meet threshold for that performance measure, Performance Units 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 Units earned shall equal the Performance Units for threshold plus the number of Performance Units determined under the following formula:

 

 

 

(TAS — TS) x

 

AP — TP
TAP — TP

 

 

 

 

TAS =

 

The Performance Units for target.

 

 

 

TS =

 

The Performance Units for threshold.

 

 

 

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 Units earned shall equal the Performance Units for target plus the number of Performance Units determined under the following formula:

 

 

 

(SS — TAS) x

 

AP — TAP
SP — TAP

 

 

 

 

SS =

 

The Performance Units for superior.

 

 

 

 


 

 

 

 

TAS =

 

The Performance Units 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 Units earned shall equal the Performance Units 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 dollar amount equal to the product of (i) the value per Performance Unit of $30 multiplied by (ii) his or her total number of Performance Units determined under Section 


 
SITE SEARCH

AGREEMENTS / CONTRACTS

Document Title:

Entire Document: (optional)

Governing Law:(optional)


Try our advanced search >>
 

CLAUSES

Search Contract Clauses >>

Browse Contract Clause Library>>

Get Email Updates
Email:
This is only a partial view of this document. We have millions of legal documents and clauses drafted by top law firms. learn more search for free browse for free learn more