Interim Term Loan Agreement

400,000,000
INTERIM TERM LOAN AGREEMENT


Dated as of May 4, 1999


among


LEAR CORPORATION,


The Lenders Party Hereto,


CITICORP USA, INC.
and
CREDIT SUISSE FIRST BOSTON,
as Co-Syndication Agents,


DEUTSCHE BANK AG NEW YORK BRANCH,
as Documentation Agent,


The Other Agents Named
in Schedule IX Hereto


and


THE CHASE MANHATTAN BANK,
as Administrative Agent


------------------------------------


CHASE SECURITIES INC.,
as Sole Book Manager and Sole Lead Arranger


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TABLE OF CONTENTS


Page


SECTION 1. DEFINITIONS.................................................................................1
1.1 Defined Terms.......................................................................................1
1.2 Other Definitional Provisions......................................................................19


SECTION 2. AMOUNT AND TERMS OF INTERIM TERM LOAN
COMMITMENTS.............................................................................19
2.1 Interim Term Loan Commitments......................................................................19
2.2 Repayment of Interim Term Loans; Evidence of Debt..................................................19
2.3 Procedure for Interim Term Loan Borrowing..........................................................20
SECTION 3. GENERAL PROVISIONS APPLICABLE TO INTERIM TERM LOANS..................................................21
3.1 Interest Rates and Payment Dates...................................................................21
3.2 Conversion and Continuation Options................................................................21
3.3 Minimum Amounts of Tranches........................................................................22
3.4 Optional and Mandatory Prepayments.................................................................22
3.5 Fees ...........................................................................................23
3.6 Computation of Interest............................................................................23
3.7 Inability to Determine Interest Rate...............................................................23
3.8 Pro Rata Treatment and Payments....................................................................24
3.9 Illegality.........................................................................................25
3.10 Requirements of Law...............................................................................25
3.11 Indemnity.........................................................................................27
3.12 Taxes ...........................................................................................27
3.13 Use of Proceeds...................................................................................29


SECTION 4. REPRESENTATIONS AND WARRANTIES.......................................................................29
4.1 Financial Statements...............................................................................29
4.2 No Change..........................................................................................29
4.3 Corporate Existence; Compliance with Law...........................................................29
4.4 Corporate Power; Authorization; Enforceable Obligations............................................30
4.5 No Legal Bar; Senior Debt..........................................................................30
4.6 No Material Litigation.............................................................................31
4.7 No Default.........................................................................................31
4.8 Ownership of Property; Liens.......................................................................31
4.9 Taxes ...........................................................................................31
4.10 Securities Law, etc. Compliance...................................................................32
4.11 ERISA ...........................................................................................32
4.12 Investment Company Act; Other Regulations.........................................................32
4.13 Subsidiaries, etc. ...............................................................................32
4.14 Accuracy and Completeness of Information..........................................................33
4.15 Security Documents................................................................................33
4.16 Patents, Copyrights, Permits and Trademarks.......................................................33


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Page
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4.17 Environmental Matters.............................................................................33
4.18 Year 2000 Matters.................................................................................35
SECTION 5. CONDITIONS PRECEDENT.................................................................................35
5.1 Conditions to Closing Date.........................................................................35
5.2 Additional Conditions to Interim Term Loans........................................................37


SECTION 6. AFFIRMATIVE COVENANTS......................................................................37
6.1 Financial Statements...............................................................................37
6.2 Certificates; Other Information....................................................................38
6.3 Performance of Obligations.........................................................................39
6.4 Conduct of Business, Maintenance of Existence and Compliance with Obligations
and Laws...................................................................................39
6.5 Maintenance of Property; Insurance.................................................................39
6.6 Inspection of Property; Books and Records; Discussions.............................................39
6.7 Notices ...........................................................................................40
6.8 Maintenance of Liens of the Security Documents.....................................................41
6.9 Environmental Matters..............................................................................41
6.10 Security Documents; Guarantee Supplement..........................................................42


SECTION 7. NEGATIVE COVENANTS...................................................................................43
7.1 Financial Covenants................................................................................43
7.2 Limitation on Indebtedness.........................................................................44
7.3 Limitation on Liens................................................................................45
7.4 Limitation on Guarantee Obligations................................................................47
7.5 Limitations on Fundamental Changes.................................................................47
7.6 Limitation on Sale of Assets.......................................................................48
7.7 Limitation on Dividends............................................................................49
7.9 Limitation on Investments, Loans and Advances......................................................50
7.10 Limitation on Optional Payments and Modification of Debt Instruments; Certain
Derivative Transactions....................................................................52
7.11 Transactions with Affiliates......................................................................52
7.12 Corporate Documents...............................................................................52
7.13 Fiscal Year.......................................................................................52
7.14 Limitation on Restrictions Affecting Subsidiaries.................................................53
7.15 Special Purpose Subsidiary........................................................................53
7.16 Interest Rate Agreements..........................................................................53
SECTION 8. EVENTS OF DEFAULT....................................................................................53


SECTION 9. THE ADMINISTRATIVE AGENT; THE MANAGING
AGENTS, DOCUMENTATION AGENT AND
SYNDICATION AGENTS....................................................................56
9.1 Appointment........................................................................................56


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Page
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9.2 Delegation of Duties...............................................................................57
9.3 Exculpatory Provisions.............................................................................57
9.4 Reliance by Administrative Agent...................................................................57
9.5 Notice of Default..................................................................................58
9.6 Non-Reliance on Administrative Agent and Other Lender..............................................58
9.7 Indemnification....................................................................................58
9.8 Administrative Agent in its Individual Capacity....................................................59
9.9 Successor Administrative Agent.....................................................................59
9.11 Actions Under Security Documents..................................................................59
9.12 Intercreditor Agreement...........................................................................60


SECTION 10. MISCELLANEOUS.......................................................................................60
10.1 Amendments and Waivers............................................................................60
10.2 Notices...........................................................................................61
10.3 No Waiver; Cumulative Remedies....................................................................61
10.4 Survival of Representations and Warranties........................................................62
10.5 Payment of Expenses and Taxes.....................................................................62
10.6 Successors and Assigns; Participations and Assignments............................................62
10.7 Adjustments; Set-Off..............................................................................65
10.8 Intercreditor Agreement. The Administrative Agent is hereby authorized to enter into an
intercreditor agreement, in form and substance reasonably satisfactory to it, to allow up to
$75,000,000 in loans outstanding on the Closing Date and owing to Deutsche Bank AG New York
Branch and/or Cayman Islands Branch and Toronto Dominion (Texas), Inc., or their respective
affiliates, to be equally and ratably secured by the Collateral and to benefit from
guarantees from the Subsidiary Guarantors on a basis which is pari passu with the Subsidiary
Guarantee....................................................................................66
10.9 Counterparts......................................................................................66
10.10 Severability.....................................................................................66
10.11 Integration......................................................................................66
10.12 GOVERNING LAW....................................................................................66
10.13 Submission to Jurisdiction; Waivers..............................................................66
10.14 Acknowledgements.................................................................................67
10.15 WAIVERS OF JURY TRIAL............................................................................67
10.16 [Reserved].......................................................................................67
10.17 [Reserved].......................................................................................67
10.18 Release of Collateral and Guarantees.............................................................67
10.19 [Reserved].......................................................................................68
10.20 Confidentiality..................................................................................68
10.21 Conflicts........................................................................................69


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SCHEDULES:


I Commitments; Addresses
II [Reserved]
III [Reserved]
IV Security Documents
V [Reserved]
VI Subsidiaries
VII Hazardous Material
VIII Contractual Obligation Restrictions
IX Agents


EXHIBITS:


A Form of Note
B [Reserved]
C [Reserved]
D [Reserved]
E [Reserved]
F [Reserved]
G [Reserved]
H [Reserved]
I [Reserved]
J [Reserved]
K Form of Assignment and Acceptance
L Form of Opinion of Winston & Strawn
M [Reserved]
N [Reserved]
O Form of Subsidiary Guarantee
P Form of Intercreditor Agreement
Q Form of Pledge Agreement


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INTERIM TERM LOAN AGREEMENT, dated as of May 4, 1999, among LEAR CORPORATION, a Delaware corporation (the "Borrower"), the Managing Agents named on Schedule IX hereof (the "Managing Agents"), the several banks and other financial institutions from time to time parties hereto (the "Lenders"), CITICORP USA, INC. and CREDIT SUISSE FIRST BOSTON, as co-syndication agents (the "Co-Syndication Agents"), DEUTSCHE BANK AG NEW YORK BRANCH, as documentation agent (the "Documentation Agent"), and THE CHASE MANHATTAN BANK, a New York banking corporation (as hereinafter defined, the "Administrative Agent"), as administrative agent for the Lenders hereunder.


W I T N E S S E T H :


WHEREAS, the Borrower is a party to the UT Automotive Acquisition Agreement (as defined below) pursuant to which the Borrower (or a Subsidiary designated by it) will consummate the UT Automotive Acquisition (as defined below); and


WHEREAS, in order to finance a portion of the purchase price of the UT Automotive Acquisition, the Borrower has requested the Lenders to make available the interim term loan facility described herein, and the Lenders are willing to make such facility available upon and subject to the terms and conditions hereinafter set forth;


NOW, THEREFORE, in consideration of the premises and the mutual agreements contained herein, the parties hereto agree as follows:


SECTION 1. DEFINITIONS


1.1 Defined Terms. As used in this Agreement, the following terms shall have the following meanings:


"ABR Loans": Interim Term Loans, the rate of interest
applicable to which is based upon the Alternate Base Rate.


"Acquired Indebtedness": Indebtedness of a Person or any of
its Subsidiaries existing at the time such Person becomes a Subsidiary
of the Borrower or assumed in connection with the acquisition of assets
from such Person and not incurred by such Person in contemplation of
such Person becoming a Subsidiary of the Borrower or such acquisition,
and any refinancings thereof.


"Administrative Agent": Chase, together with its affiliates,
as arranger of the Commitments and as Administrative Agent for the
Lenders under this Agreement and the other Loan Documents, and any
successor thereto appointed pursuant to subsection 9.9.


"Affiliate": of any Person, (a) any other Person (other than a
Wholly Owned Subsidiary of such Person) which, directly or indirectly,
is in control of, is controlled by,


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or is under common control with, such Person or (b) any other Person
who is a director or executive officer of (i) such Person, (ii) any
Subsidiary of such Person (other than a Wholly Owned Subsidiary) or
(iii) any Person described in clause (a) above. For purposes of this
definition, a Person shall be deemed to be "controlled by" such other
Person if such other Person possesses, directly or indirectly, power
either to (A) vote 10% or more of the securities having ordinary voting
power for the election of directors of such first Person or (B) direct
or cause the direction of the management and policies of such first
Person whether by contract or otherwise.


"Agreement": this Interim Term Loan Agreement, as the same may
be amended, supplemented or otherwise modified from time to time.


"Alternate Base Rate": for any day, a rate per annum (rounded
upwards, if necessary, to the next 1/16 of 1%) equal to the greatest
of:


(a) the U.S. Prime Rate in effect on such day; and


(b) the Federal Funds Effective Rate in effect on such
day plus 1/2 of 1%.


If for any reason the Administrative Agent shall have determined (which
determination shall be conclusive absent manifest error) that it is
unable to ascertain the Federal Funds Effective Rate for any reason,
including the inability or failure of the Administrative Agent to
obtain sufficient quotations in accordance with the terms thereof, the
Alternate Base Rate shall be determined without regard to clause (b)
above, until the circumstances giving rise to such inability no longer
exist. Any change in the Alternate Base Rate due to a change in the
U.S. Prime Rate or the Federal Funds Effective Rate shall be effective
as of the opening of business on the effective day of such change in
the U.S. Prime Rate or the Federal Funds Effective Rate, respectively.


"Amended and Restated Credit Agreement": the Second Amended
and Restated Credit and Guarantee Agreement, dated as of May 4, 1999,
among the Borrower, certain Foreign Subsidiaries parties thereto, the
lenders parties thereto, Chase, as administrative agent, and others, as
the same may be amended, supplemented or otherwise modified from time
to time, and any Refinancing Agreement in respect thereof.


"Applicable Margin": with respect to each day, the rate per
annum based on the Ratings in effect on such day, as set forth under
the relevant column heading below:


Rating Applicable Margin
------ -----------------


Rating I .75%
Rating II 1.00%


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Rating III 1.25%;


provided, that during the period from the Closing Date until the date
on which the Borrower delivers to the Lenders its financial statements
and related compliance certificate for the fiscal quarter ending
September 30, 1999 pursuant to subsections 6.1 and 6.2, the Applicable
Margin shall be that set forth above opposite Rating III.


"Asset Sale": any sale, lease, transfer or other disposition
(or series of related sales, leases, transfers or other dispositions)
of assets which yields Net Cash Proceeds to the Borrower or any of its
Subsidiaries in excess of $100,000,000; provided, that any sale, lease,
transfer or other disposition permitted by paragraphs (a) through (i)
of subsection 7.6 shall not constitute an Asset Sale.


"Assignee": as defined in subsection 10.6(c).


"Benefitted Lender": as defined in subsection 10.7.


"Board": the Board of Governors of the Federal Reserve System
(or any successor thereto).


"Bond Guarantee": the guarantee entered into by any Subsidiary
Guarantor in respect of up to an aggregate principal amount of
$1,400,000,000 of senior unsecured debt securities to be issued by the
Borrower, all or a portion of the proceeds of which will be used to
repay in full the Interim Term Loans.


"Borrower": as defined in the preamble hereto.


"Business Day": any day other than a Saturday, Sunday or other
day on which commercial banks in New York City are authorized or
required by law to close.


"Capital Stock": any and all shares, interests, participations
or other equivalents (however designated) of capital stock of a
corporation, any and all equivalent ownership interests in a Person
(other than a corporation) and any and all warrants, rights or options
to purchase any of the foregoing.


"Cash Equivalents": (a) securities issued or unconditionally
guaranteed or insured by the United States Government or the Canadian
Government or any agency or instrumentality thereof having maturities
of not more than twelve months from the date of acquisition, (b)
securities issued or unconditionally guaranteed or insured by any state
of the United States of America or province of Canada or any agency or
instrumentality thereof having maturities of not more than twelve
months from the date of acquisition and having one of the two highest
ratings obtainable from either S&P or Moody's, (c) time deposits,
certificates of deposit and bankers' acceptances having maturities of
not more than twelve months from the date of acquisition, in each case
with any Lender or with any commercial bank organized under the laws of
the United States of America or any state


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thereof or the District of Columbia, Japan, Canada or any member of the
European Economic Community or any U.S. branch of a foreign bank having
at the date of acquisition capital and surplus of not less than
$100,000,000, (d) repurchase obligations with a term of not more than
seven days for underlying securities of the types described in clauses
(a), (b) and (c) entered into with any bank meeting the qualifications
specified in clause (c) above, (e) commercial paper issued by the
parent corporation of any Lender and commercial paper rated, at the
time of acquisition, at least A-1 or the equivalent thereof by S&P or
P-1 or the equivalent thereof by Moody's and in either case maturing
within twelve months after the date of acquisition, (e) deposits
maintained with money market funds having total assets in excess of
$300,000,000, (f) demand deposit accounts maintained in the ordinary
course of business with banks or trust companies, (g) temporary
deposits, of amounts received in the ordinary course of business
pending disbursement of such amounts, in demand deposit accounts in
banks outside the United States and (h) deposits in mutual funds which
invest substantially all of their assets in preferred equities issued
by U.S. corporations rated at least AA (or the equivalent thereof) by
S&P.


"Chase": The Chase Manhattan Bank, a New York banking
corporation.


"Closing Date": the date on which all of the conditions
precedent set forth in subsection 5.1 shall have been satisfied or
waived and the Interim Term Loans are made.


"Code": the Internal Revenue Code of 1986, as amended from
time to time.


"Commonly Controlled Entity": an entity, whether or not
incorporated, which is under common control with the Borrower within
the meaning of Section 4001 of ERISA or is part of a group which
includes the Borrower and which is treated as a single emp ...