EX-10(K)



 





Exhibit 10-K




CHANGE OF CONTROL AGREEMENT




BETWEEN




DANA CORPORATION




AND




PAUL E. MILLER




DATED MAY 3, 2004





 









 








TABLE OF CONTENTS




	 	 	 	 	 
	SECTION	 	PAGE	 
	Recitals
	 	 	1	 
	1. OPERATION OF AGREEMENT; EMPLOYMENT AND TERM
	 	 	1	 
	2. POSITION AND DUTIES OF THE EXECUTIVE
	 	 	2	 
	(A) Position
	 	 	2	 
	(B) Duties
	 	 	3	 
	(C) Location Of Office
	 	 	3	 
	3. COMPENSATION
	 	 	3	 
	(A) Salary
	 	 	3	 
	(B) Additional Compensation
	 	 	4	 
	(C) Incentive, Stock And Savings Plans
	 	 	4	 
	(D) Retirement And Welfare Benefit Plans
	 	 	4	 
	(E) Expenses
	 	 	5	 
	(F) Fringe Benefits
	 	 	5	 
	(G) Office And Support Staff
	 	 	5	 
	(H) Vacation And Other Absences
	 	 	5	 
	(I) Benefits Shall Not Be Reduced Under Certain Circumstances
	 	 	5	 
	(J) Certain Retirement And Severance Definitions
	 	 	6	 
	4. TERMINATION OF EMPLOYMENT
	 	 	6	 
	(A) Death Or Disability
	 	 	6	 
	(B) Cause
	 	 	7	 
	(C) Good Reason
	 	 	8	 
	(D) Notice Of Termination
	 	 	9	 
	(E) Date Of Termination
	 	 	9	 
	5. OBLIGATIONS OF THE CORPORATION UPON TERMINATION
	 	 	10	 
	(A) Termination Other Than For Cause
	 	 	10	 
	(B) [intentionally left blank]
	 	 	12	 
	(C) Cause; Other Than For Good Reason
	 	 	12	 
	(D) Death Or Disability
	 	 	12	 
	(E) Resolution Of Disputes
	 	 	13	 
	(1) Right Of Election By Executive To Arbitrate Or Sue
	 	 	13	 
	(2) Third-Party Stakeholder
	 	 	13	 
	6. NON-EXCLUSIVITY OF RIGHTS
	 	 	14	 
	7. FULL SETTLEMENT
	 	 	14	 
	8. CERTAIN ADDITIONAL PAYMENTS BY THE CORPORATION
	 	 	14	 
	9. CONFIDENTIAL INFORMATION
	 	 	17	 
	10. COMPETITION
	 	 	18	 
	11. SUCCESSORS
	 	 	19	 
	12. CERTAIN DEFINITIONS
	 	 	19	 
	(A) Beneficiary
	 	 	19	 
	(B) Change Of Control
	 	 	19	 
	(C) Change Of Control Date
	 	 	21	 
	13. AMENDMENT OR MODIFICATION; WAIVER
	 	 	21	 
	14. MISCELLANEOUS
	 	 	21	 
	Exhibit A
	 	 	 	 
	Exhibit B
	 	 	 	 






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DEFINED
TERMS




	 	 	 	 	 
	DEFINED TERMSA	 	SECTION	 	PAGE
	Accounting Firm
	 	8(B)	 	15
	Accrued Obligations
	 	5(A)(1)(c)	 	10
	ACP
	 	3(B)	 	4
	Affiliate
	 	2(A)(5)	 	2
	Affiliated Companies
	 	3(A)	 	3
	Agreement
	 	Introduction	 	1
	Annual Base Salary
	 	3(A)	 	3
	Annual Bonus
	 	3(B)	 	4
	Beneficial Owner
	 	12(B)	 	21
	Beneficiary
	 	12(A)	 	19
	Board
	 	3(A)	 	3
	Business Combination
	 	12(B)(3)	 	19
	Cause
	 	4(B)	 	7
	Change of Control
	 	12(B)	 	20
	Change of Control Date
	 	12(C)	 	21
	COC Employment Period
	 	1(B)	 	1
	Code
	 	8(B)	 	16
	Competition
	 	10(B)	 	18
	Corporation
	 	Introduction	 	1
	 
	 	14(E)	 	22
	Date of Termination
	 	4(E)	 	9
	Disability
	 	4(A)(2)	 	6
	Disability Effective Date
	 	4(A)(2)	 	6
	Exchange Act
	 	12(B)	 	21
	Excise Tax
	 	8(F)(1)	 	17
	Executive
	 	Introduction	 	1
	Good Reason
	 	4(C)	 	8
	Gross-Up Payment
	 	8(A)	 	14
	 
	 	 	 	 
	Incumbent Board
	 	12(B)(2)	 	20
	Notice of Termination
	 	4(D)	 	9
	Other Benefits
	 	5(A)(5)	 	12
	Parachute Value
	 	8(F)(2)	 	17
	Payment
	 	8(F)(3)	 	17
	 
	 	 	 	 
	Person
	 	12(B)	 	21
	Prior Voting Securities
	 	12(B)(3)	 	20
	Renewal Date
	 	1(D)	 	1
	Safe Harbor Amount
	 	8(F)(4)	 	17





 




			
	A	 	Each listed term is intended to include both the singular and
plural form of the term.




ii









 






	 	 	 	 	 
	DEFINED TERMS	 	SECTION	 	PAGE
	Service
	 	3(J)(2)	 	6
	Severance Compensation
	 	3(J)(1)	 	6
	Short-Term Award
	 	3(B)	 	4
	Spinoff
	 	12(B)	 	20
	Subsidiary
	 	2(A)(5)	 	2
	Terminal Date
	 	1(A)	 	1
	Termination
	 	5(A)	 	10
	Termination Period
	 	5(A)(2)	 	10
	Underpayment
	 	8(B)	 	15
	Value
	 	8(F)(5)	 	17










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     THIS CHANGE OF CONTROL AGREEMENT (the “Agreement”) made and entered into as of this 3rd day of
May, 2004, by and between DANA CORPORATION, a Virginia corporation whose principal place of
business is located at 4500 Dorr Street, Toledo, Ohio (the “Corporation”), and Paul E. Miller (the
“Executive”);



     WHEREAS, the Executive is a principal executive officer of the Corporation and an integral
part of its management; and



     WHEREAS, the Corporation wishes to assure both itself and the Executive of continuity of
management in the event of any actual or threatened Change of Control of the Corporation; and



     WHEREAS, this Agreement is not intended to alter materially the compensation and benefits that
the Executive could reasonably expect in the absence of a Change of Control of the Corporation,
and, accordingly, this Agreement, though taking effect upon execution thereof, will be operative
only upon a Change of Control of the Corporation, as that term is hereafter defined;



     NOW, THEREFORE, IN CONSIDERATION of the mutual promises, covenants and agreements set forth
below, it is hereby agreed as follows:



1. OPERATION OF AGREEMENT; EMPLOYMENT AND TERM.




     (A) This Agreement shall be effective immediately upon its execution by the parties hereto
but, anything in this Agreement to the contrary notwithstanding, neither the Agreement nor any
provision thereof, except for this Section 1(A), Section 1(D), Section 2(A)(2), Section 11, Section
12(B), Section 13, and Sections 14(A), (B), (C), (F), (N) and (O), shall be operative unless and
until there has been a Change of Control of the Corporation, as defined in Section 12(B) below,
prior to December 31, 2006 or such later date as shall result from the operation of Section 1(D)
below (the “Terminal Date”) and while the Executive is in the employ of the Corporation. Upon such
a Change of Control of the Corporation, this Agreement and all provisions thereof shall become
operative immediately.



     (B) The Corporation hereby agrees to continue the employment of the Executive, and the
Executive hereby agrees to remain in the employ of the Corporation, in accordance with the terms
and provisions of this Agreement, for the period set forth below (the “COC Employment Period”).



     (C) The COC Employment Period under this Agreement shall commence on the date this Agreement
becomes operative pursuant to the provisions of Sections 1(A) above and, subject only to the
provisions of Section 4 below relating to termination of employment, shall continue until the third
anniversary of a Change of Control of the Corporation.



     (D) Commencing on December 31, 2004, and on each anniversary of such date (such date and each
such annual anniversary thereof, the “Renewal Date”), the Terminal Date set forth in Section 1(A)
above shall be extended so as to occur three (3) years from the Renewal Date unless either party
shall have given notice to the other party that the Terminal Date is not to be extended or further
extended.



 









 





2. POSITION AND DUTIES OF THE EXECUTIVE.




(A) Position.





     (1) It is contemplated that during the COC Employment Period the Executive will
continue to serve as a principal officer of the Corporation and as a member of its Board of
Directors if serving as a member of the Board of Directors immediately prior to a Change of
Control, as defined in Section 12(B) below, with the office(s) and title(s), reporting
responsibility and duties and responsibilities of the Executive on the date of this
Agreement, as the same may be changed from time to time after the date of this Agreement and
prior to the date this Agreement becomes operative pursuant to the provisions of Section
1(A) above.




     (2) The office(s), title(s), reporting responsibility, duties and responsibilities of
the Executive on the date of this Agreement, as the same may be changed from time to time
after the date of this Agreement and prior to the date this Agreement becomes operative
pursuant to the provisions of Section 1(A) above, shall be summarized in Exhibit A to this
Agreement, it being understood and agreed that if, as when the office(s), title(s),
reporting responsibility, duties and responsibilities of the Executive shall be changed
prior to the date this Agreement becomes operative pursuant to the provisions of Section
1(A) above, Exhibit A shall be deemed to be and shall be updated by the parties to reflect
such change; provided, however, that Exhibit A is intended only as
memorandum for the convenience of the parties and shall be disregarded if and to the extent
that, at the time this Agreement becomes operative, Exhibit A shall fail to reflect
accurately the office(s), title(s), reporting responsibility, duties or responsibilities of
the Executive at the time because the parties shall have failed to update Exhibit A as
aforesaid after the last such change prior to the date this Agreement shall have become
operative.




     (3) At all times during the COC Employment Period, the Executive shall hold a position
of responsibility and importance and a position of scope, with the functions, duties and
responsibilities attached thereto, at least equal in responsibility and importance and in
scope to and commensurate with his position described in general terms above in this Section
2(A) and intended to be summarized in Exhibit A to this Agreement.




     (4) During the COC Employment Period the Executive shall, without compensation other
than that herein provided, also serve and continue to serve, if and when elected and
re-elected, as an officer or director, or both, of any United States Subsidiary, division or
Affiliate of the Corporation.




     (5) For all purposes of this Agreement, (1) a “Subsidiary” shall mean a corporation or
other entity, of which 50% or more of the voting securities or other equity interests is
owned directly, or indirectly through one or more intermediaries, by the Corporation, and
(2) an “Affiliate” shall mean a corporation or other entity which is not a Subsidiary and
which directly, or indirectly through one or more intermediaries, controls, or is controlled
by, or is under common control with, the Corporation. For the purpose of
this definition, the terms “control”, “controls” and “controlled” mean the possession,
direct or indirect, of the power to direct or cause the direction of the management and
poli-



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cies of a corporation or other entity, whether through the ownership of voting
securities, by contract, or otherwise.



     (B) Duties. Throughout the COC Employment Period the Executive shall devote his full
time and undivided attention during normal business hours to the business and affairs of the
Corporation except for reasonable vacations and except for illness or incapacity, but nothing in
this Agreement shall preclude the Executive from devoting reasonable periods required for:




     (1) serving as a director or member of a committee or any organization involving no
conflict of interest with the interests of the Corporation;




     (2) delivering lectures, fulfilling speaking engagements, teaching at educational
institutions;




     (3) engaging in charitable and community activities; and




     (4) managing his personal investments;


provided, that such activities do not materially interfere with the regular performance of
his duties and responsibilities under this Agreement.




     (C) Location Of Office. During the COC Employment Period, the office of the Executive
shall be located at the principal offices of the Corporation, within the greater Toledo, Ohio area,
and the Executive shall not be required to locate his office elsewhere without his prior written
consent, nor shall he be required to be absent therefrom on travel status or otherwise more than
thirty (30%) of the working days in any calendar year nor for more than ten (10) consecutive days
at any one time.



3. COMPENSATION.




     The Executive shall receive the following compensation for his services:



     (A) Salary. So long as the Executive is employed by the Corporation, he shall be paid
an annual base salary, payable not less often than monthly, at the rate of not less than $29,583.33
per month with such increases as shall be awarded from time to time in accordance with the
Corporation’s regular administrative practices of other salary increases applicable to executives
of the Corporation, subject to any and all required withholdings and deductions for Social
Security, income taxes and the like (the “Annual Base Salary”). The Board of Directors of the
Corporation (the “Board”) may from time to time direct such upward adjustments to Annual Base
Salary as the Board deems to be necessary or desirable; provided, however, that
during the COC Employment Period, the Annual Base Salary shall be reviewed at least annually and
shall be increased at any time and from time to time but not less often than annually and shall be
substantially consistent with increases in base salary generally awarded in the ordinary course of
business to other senior executives of the Corporation and its “Affiliated Companies” (a term
which, as used in this Agreement, shall mean a Subsidiary or
Affiliate of the Corporation) and, in addition, shall be adjusted effective as of January lst
of each calendar year commencing in the COC Employment Period to reflect increases in the cost of
living during the preceding calendar year. Annual Base Salary shall not be reduced after any
increase thereof pursuant to this Section 3(A).



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Any increase in Annual Base Salary shall not serve
to limit or reduce any other obligation of the Corporation under this Agreement.



     (B) Additional Compensation. So long as the Executive is employed by the Corporation,
he shall be eligible to receive annual short-term incentive awards or bonuses (such award or bonus
is hereinafter referred to as “Short-Term Award” or “Annual Bonus”) from the Dana Corporation
Additional Compensation Plan, and from any successor or replacement plan (the Dana Corporation
Additional Compensation Plan and such successor or replacement plans being referred to herein
collectively as the “ACP”), in accordance with the terms thereof; provided,
however, that, with respect to each fiscal year of the Corporation ending during the COC
Employment Period, the Executive shall be awarded (whether under the terms of the ACP or otherwise)
an Annual Bonus in an amount that shall not be less than sixty percent (60%) of his Annual Base
Salary rate in effect on the last day of such fiscal year (which amount shall be prorated if such
fiscal year shall be less than 12 months). Each Annual Bonus shall be paid no later than the end
of the third month of the fiscal year next following the fiscal year for which the Annual Bonus is
awarded, unless the receipt of such Annual Bonus is deferred in accordance with the terms of the
ACP.



     (C) Incentive, Stock And Savings Plans. So long as the Executive is employed by the
Corporation, he shall be and continue to be a full participant in the Dana Corporation Amended and
Restated Stock Incentive Plan, the ACP (providing for Short-Term Awards) and in any and all other
incentive, stock, savings, practices or policies in which executives of the Corporation participate
that are in effect on the date hereof and that may hereafter be adopted, including, without
limitation, any stock option, stock purchase or stock appreciation plans, or any successor plans
that may be adopted by the Corporation with, except in the case of the ACP after the commencement
of the COC Employment Period, at least the same reward opportunities, if any, that have heretofore
been provided to the Executive. Nothing in this Agreement shall preclude improvement of reward
opportunities in such plans or other plans in accordance with the practices in effect on the first
day of the calendar month that this Agreement becomes operative. Any provision of the ACP or of
this Agreement to the contrary notwithstanding, any Short-Term Awards made to the Executive
(whether for services rendered prior to or after the date this Agreement becomes operative) shall
be paid wholly in cash as soon as practicable after the awards are made.



     (D) Retirement And Welfare Benefit Plans. The Executive, his dependents and
Beneficiary, including, without limitation, any beneficiary applicable to the payment of benefits
under the Supplemental Executive Retirement Plan for Paul Miller, shall be entitled to all payments
and benefits and service credit for benefits during the COC Employment Period (1) under the
Supplemental Executive Retirement Plan for Paul Miller and (2) to which other senior executives of
the Corporation, their dependents and their beneficiaries are entitled under the terms of employee
retirement and welfare benefit plans and practices of the Corporation, including, without
limitation, the Corporation’s SavingsWorks Plan, its Stock Purchase Plan, its Income Protection
Plan for Management and Certain Other Employees providing layoff and severance benefits, its
1989 and 1999 Restricted Stock Plans, its death benefit plans (consisting of its Group
Insurance Plan for Management Employees providing life insurance, accidental death and
dismemberment insurance, and travel accident insurance), its disability benefit plans (consisting
of its salary continuation, sickness and accident and long-term disability benefits programs), its
medical, dental and health and welfare plans and other present or equivalent successor plans and
practices of the



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Corporation, its Subsidiaries and divisions, for which officers, their dependents
and beneficiaries, are eligible, and to all payments or other benefits under any such plan or
practice subsequent to the COC Employment Period as a result of participation in such plan or
practice during the COC Employment Period.



     (E) Expenses. So long as the Executive is employed by the Corporation, he shall be
entitled to receive prompt reimbursement for all reasonable expenses incurred by the Executive in
accordance with the polices, practices and procedures of the Corporation and its Affiliated
Companies from time to time in effect, commensurate with his position and on a basis at least
comparable to that of other senior executives of the Corporation.



     (F) Fringe Benefits. So long as the Executive is employed by the Corporation, he
shall be entitled to fringe benefits, including, without limitation, the business and personal use
of an automobile, and payment or reimbursement of club initiation fees and dues, in accordance with
the plans, practices, programs and policies of the Corporation and its Affiliated Companies from
time to time in effect, commensurate with his position and at least comparable to those received by
other senior executives of the Corporation.



     (G) Office And Support Staff. So long as the Executive is employed by the
Corporation, he shall be entitled to an office or offices of a size and with furnishings and other
appointments, and to exclusive personal secretarial and other assistance, commensurate with his
position and at least comparable to those received by other senior executives of the Corporation.



     (H) Vacation And Other Absences. So long as the Executive is employed by the
Corporation, he shall be entitled to paid vacation and such other paid absences whether for
holidays, illness, personal time or any similar purposes, in accordance with the plans, policies,
programs and practices of the Corporation and its Affiliated Companies in effect from time to time,
commensurate with his position and at least comparable to those received by other senior executives
of the Corporation.



     (I) Benefits Shall Not Be Reduced Under Certain Circumstances. Nothing in this
Agreement shall preclude the Corporation from amending or terminating any employee benefit or
welfare plan or practice, but, it being the intent of the parties that the Executive shall continue
to be entitled during the COC Employment Period to perquisites as set forth in this Section 3 and
to benefits and service credit for benefits under Section 3(D) above at least equal to those
attached to his position on the date of this Agreement, and except as provided in the last sentence
of this Section 3(I), nothing in this Agreement shall operate or be construed to reduce, or
authorize a reduction without the Executive’s written consent in, the level of such perquisites,
benefits or service credit for benefits; in the event of any such reduction, by amendment or
termination of any plan or practice or otherwise, the Executive, his dependents and Beneficiary,
shall continue to be entitled to perquisites, benefits and service credit for benefits at least
equal to the perquisites, benefits and service credit for benefits under such plans or practices
that he or his dependents and Beneficiary would have received if such reduction had not taken
place. If and to the extent that such perquisites, benefits and service credits are not payable or
provided under any such plans or practices by reason of such amendment or termination thereof, the
Corporation itself shall pay or provide therefor. Notwithstanding the foregoing provisions of this
Section 3(I), the Executive hereby waives the benefit of the foregoing minimum benefit protection
only as it



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applies to the Dana Corporation SavingsWorks Plan, and to its medical, dental and health
plans. The Executive expressly does not waive the application of the foregoing minimum benefit
protection to any of the other benefit plans, programs or practices enumerated in Section 3 above,
including, without limitation, the Supplemental Executive Retirement Plan for Paul Miller, the
Corporation’s death benefit plans, its disability benefit plans, and its Income Protection Plan for
Management and Certain Other Employees. The Executive reserves the right to cancel the above
waiver, prospectively, at any future time by giving written notice to the Corporation of such
cancellation. Nothing in this Section 3(I) shall be construed to prohibit the Corporation from
amending or terminating any employee benefit or welfare plan or practice to reduce benefits, so
long as such reduction applies to all salaried Corporation employees covered by such plan or
practice equally and such reduction is adopted prior to the Change of Control Date.



     (J) Certain Retirement And Severance Definitions.




     (1) The term “Severance Compensation” shall mean the sum of (1) one-twelfth (1/12) of
the Annual Base Salary provided in Section 3(A) at the rate being paid at the time the
Executive’s termination of employment occurred, and (2) one-twelfth (1/12) of the greater of
(x) the average of the highest Annual Bonuses payable to the Executive for any three (3)
consecutive full or partial fiscal years during his employment by the Corporation or (y) the
Executive’s target annual bonus (currently 60%) in effect under the ACP as of the Date of
Termination (which, for purposes of this Section 3(J) and notwithstanding any reduction
following the Change of Control Date, shall not be less than the Executive’s target annual
bonus as of immediately prior to the Change of Control Date).




     (2) The term “Service” shall mean employment as an employee by the Corporation, any
Subsidiary or Affiliate thereof or any corporation the capital stock or assets of which have
been acquired by, or which has been merged into or consolidated with the Corporation or any
Subsidiary or Affiliate thereof.



4. TERMINATION OF EMPLOYMENT.




     (A) Death Or Disability.




     (1) The Executive’s employment shall terminate automatically upon the Executive’s death
during the COC Employment Period.




     (2) If the Corporation determines in good faith that the Disability (as defined below)
of the Executive has occurred during the COC Employment Period, it may give to the Executive
written notice in accordance with Section 14(B) below of its intention to terminate the
Executive’s employment. In such event, the COC Employment Period shall terminate effective
on the 30th day after receipt of such notice by the Executive (the “Disability Effective
Date”), provided, that within the 30 days after such receipt, the Executive shall
not have returned to full-time performance of the Executive’s duties. For purposes of this
Agreement, “Disability” shall mean the absence of the Executive from the Executive’s duties
with the Corporation on a full-time basis for 180 consecutive business days as a result of
incapacity due to mental or physical illness which is determined



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to be total and permanent
by a physician selected by the Corporation or its insurers and acceptable to the Executive
or the Executive’s legal representative (such agreement as to acceptability not to be
withheld unreasonably).



     (B) Cause. The Corporation may terminate the Executive’s employment during the COC
Employment Period for Cause. For purposes of this Agreement, the termination of the Executive’s
employment shall be deemed to have been for “Cause” only




     (1) if termination of his employment shall have been the result of his conviction of,
or plea of guilty or nolo contendere to, the charge of having committed a felony (whether or
not such conviction is later reversed for any reason), or




     (2) if there has been a breach by the Executive during the COC Employment Period of the
provisions of Section 2(B), relating to the time to be devoted to the affairs of the
Corporation, or of Section 9, relating to confidential information, and such breach results
in demonstrably material injury to the Corporation, and, with respect to any alleged breach
of Section 2(B) hereof, the Executive shall have either failed to remedy such alleged breach
within thirty days from his receipt of written notice from the Secretary of the Corporation
pursuant to resolution duly adopted by the Board of Directors of the Corporation after
notice to the Executive and an opportunity to be heard demanding that he remedy such alleged
breach, or shall have failed to take all reasonable steps to that end during such thirty-day
period and thereafter;


provided, that there shall have been delivered to the Executive a certified copy of a
resolution of the Board of Directors of the Corporation adopted by the affirmative vote of not less
than three-fourths of the entire membership of the Board of Directors called and held for that
purpose and at which the Executive was given an opportunity to be heard, finding that the Executive
was guilty of conduct set forth in subparagraph (1) or (2) above, specifying the particulars
thereof in detail.




     Anything in this Section 4(B) or elsewhere in this Agreement to the contrary notwithstanding,
the employment of the Executive shall in no event be considered to have been terminated by the
Corporation for Cause if termination of his employment took place




(1) as the result of bad judgment or negligence on the part of the
Executive, or




(2) because of an act or omission believed by the Executive in good
faith to have been in or not opposed to the interests of the
Corporation, or




(3) for any act or omission in respect of which a determination could
properly be made that the Executive met the applicable standard of
conduct prescribed for indemnification or reimbursement or payment of
expenses under (A) the Bylaws of the Corporation, or (B) the laws of
the State of Virginia, or (C) the directors’ and officers’ liability
insurance of the Corporation, in each case either



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as in effect at the
time of this Agreement or in effect at the time of such act or
omission, or




(4) as the result of an act or omission which occurred more than
twelve calendar months prior to the Executive’s having been given
notice of the termination of his employment for such act or omission
unless the commission of such act or such omission could not at the
time of such commission or omission have been known to a member of
the Board of Directors of the Corporation (other than the Executive,
if he is then a member of the Board of Directors), in which case more
than twelve calendar months from the date that the commission of such
act or such omission was or could reasonably have been so known, or




(5) as the result of a continuing course of action which commenced
and was or could reasonably have been known to a member of the Board
of Directors of the Corporation (other than the Executive, if he is
then a member of the Board of Directors) more than twelve calendar
months prior to notice having been given to the Executive of the
termination of his employment.



     (C) Good Reason. The Executive may terminate his employment during the COC Employment
Period for Good Reason. For purposes of this Agreement, “Good Reason” shall mean the occurrence
(without the Executive’s express written consent) of any of the following events, unless in the
case of any act or failure to act described in clauses (1), (2), (3), (4) or (5) below, such act or
failure to act is corrected by the Corporation within 30 days after receipt by the Corporation of
written notice from the Executive in respect of such event:




     (1) Failure to elect or reelect the Executive to the Board of Directors of the
Corporation, if the Executive shall have been a member of the Board of Directors on the date
of this Agreement or at any time thereafter during the COC Employment Period, or a
substantial diminution in the Executive’s title(s) or office(s) described in Section 2(A)
above and intended to be summarized in Exhibit A to this Agreement, or the removal of
Executive from any such positions.




     (2) A material change or diminution in the position, duties, responsibilities or status
of the Executive that is adversely inconsistent with the position, duties, responsibilities
or status attached to the position described in Section 2 above and intended to be
summarized in Exhibit A to this Agreement.




     (3) The Executive’s compensation, annual bonus opportunity or benefit entitlements as
in effect immediately prior to the Change of Control or as increased following the Change of
Control are reduced.




     (4) A breach by the Corporation of any provision of this Agreement not embraced within
the foregoing clauses (1), (2) and (3) of this Section 4(C).



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     (5) The liquidation, dissolution, consolidation or merger of the Corporation or
transfer of all or a significant portion of its assets unless a successor or successors (by
merger, consolidation or otherwise) to which all or a significant portion of its assets have
been transferred shall have assumed all duties and obligations of the Corporation under this
Agreement but without releasing the corporation that is the original party to this
Agreement;


provided, that in any event set forth in this Section 4(C), the Executive shall have
elected to terminate his employment under this Agreement, upon not less than ten and not more than
ninety days’ advance written notice to the Corporation, attention of the Secretary, given, except
in the case of a continuing breach, within three calendar months after (A) failure to be so elected
or reelected, or removal, (B) expiration of the 30-day cure period with respect to such event, or
(C) the closing date of such liquidation, dissolution, consolidation, merger or transfer of assets,
as the case may be. The Executive’s mental or physical incapacity following the occurrence of an
event described above in clauses (1) through (5) shall not affect the Executive’s ability to
terminate employment for Good Reason.




     An election by the Executive to terminate his employment for Good Reason under the provisions
of this Section 4(C) shall not be deemed a voluntary termination of employment by the Executive for
the purpose of this Agreement or any plan or practice of the Corporation.



     (D) Notice Of Termination. Any termination by the Corporation for Cause, or by the
Executive for Good Reason, shall be communicated by Notice of Termination to the other party hereto
given in accordance with Section 14(B) below. For purposes of this Agreement, a “Notice of
Termination” means a written notice which




     (1) indicates the specific termination provision in this Agreement relied upon,




     (2) to the extent applicable, sets forth in reasonable detail the facts and
circumstances claimed to provide a basis for termination of the Executive’s employment under
the provision so indicated and




     (3) if the Date of Termination (as defined in Section 4(E) below) is other than the
date of receipt of such notice, specifies the termination date (which date shall be not more
than fifteen days after the giving of such notice).



     (E) Date Of Termination. “Date of Termination” means




     (1) if the Executive’s employment is terminated by the Corporation for Cause, or by the
Executive for Good Reason, the later of (a) the date of receipt of the Notice of Termination
or any later date specified therein, as the case may be or (b) the end of any applicable
30-day cure period described in Section 4(C),




     (2) if the Executive’s employment is terminated by the Corporation other than for Cause
or Disability, the Date of Termination shall be the date on which the Corporation notifies
the Executive of such termination and



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     (3) if the Executive’s employment is terminated by reason of death or Disability, the
Date of Termination shall be the date of death of the Executive or the Disability Effective
Date, as the case may be.



5. OBLIGATIONS OF THE CORPORATION UPON TERMINATION.




     (A) Termination Other Than For Cause. If, during the COC Employment Period, the
Corporation shall terminate the Executive’s employment other than for Cause or the Executive shall
terminate his employment following a Change of Control for Good Reason (termination in any such
case referred to as “Termination”) and subject to the Executive entering into and not revoking a
release (unless the Corporation determines not to request such release) substantially in the form
set forth as Exhibit B hereto:




     (1) the Corporation shall pay the Executive in a lump sum in cash within 30 days after
the Date of Termination the sum of




	 	(a)	 	the Executive’s Annual Base Salary through the
Date of Termination to the extent not theretofore paid,
	 
	 	(b)	 	to the extent that the Annual Bonus has not
been paid to the Executive in respect of the fiscal year in which the
Date of Termination occurs, the product of (x) the Executive’s target
annual bonus in effect under the ACP as of the Date of Termination
(which, for purposes of Section 3(J) and notwithstanding any reduction
following the Change of Control Date, shall not be less than the
Executive’s target annual bonus as
of immediately prior to the Change of Control Date) and (y) a
fraction, the numerator of which is the number of days in the current
fiscal year through the Date of Termination, and the denominator of
which is 365, and
	 
	 	(c)	 	any compensation previously deferred by the
Executive (together with any accrued interest or earnings thereon) and
any accrued vacation pay, in each case to the extent not theretofore
paid (the sum of the amounts described in clauses (a), (b), and (c)
shall be hereinafter referred to as the “Accrued Obligations”); and






     (2) The Corporation shall pay the Executive in a lump sum in cash within 30 days after
the Date of Termination an amount equal to the Executive’s Severance Compensation for the
period from the Date of Termination until the earlier of (x) the third anniversary of the
Date of Termination and (y) the date upon which the Executive attains the age of sixty-five
(65) years (the “Termination Period”); provided, however, that such amount
would be reduced by any other amounts payable to the Executive in respect of salary or bonus
continuation to be received by the Executive under any severance plan, policy or arrangement
of the Corporation; and




     (3) During the Termination Period, or such longer period as any plan, program, practice
or policy may provide, the Corporation shall continue benefits to the Executive and/or the
Executive’s family at least equal to those which would have been pro-



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vided to them in
accordance with the plans, programs, practices and policies described in Section 3(D) above
if the Executive’s employment had not been terminated in accordance with the most favorable
plans, practices, programs or policies of the Corporation and its Affiliated Companies as in
effect and applicable generally to other senior executives of the Corporation and its
Affiliated Companies and their families during the 90-day period immediately preceding the
Date of Termination or, if more favorable to the Executive, as in effect at any time
thereafter or, if more favorable to the Executive, as in effect generally at any time
thereafter with respect to other senior executives of the Corporation and its Affiliated
Companies and their families or, if more favorable to the Executive, as in effect
immediately prior to the Change of Control, if applicable, provided,
however, that if the Executive becomes reemployed with another employer and is
eligible to receive medical or other welfare benefits under another employer-provided plan,
the medical and other welfare benefits described herein shall be secondary to those provided
under such other plan during such applicable period of eligibility. For purposes of
determining eligibility of the Executive for retirement benefits pursuant to such plans,
practices, programs and policies, the Executive shall be considered to have remained
employed until the end of the Termination Period and to have retired on the date of the end
of the Termination Period. To the extent that any benefits referred to in this Section
5(A)(3) shall not be payable or provided under any such plan by reason of the Executive’s no
longer being an employee of the Corporation as the result of Termination, the Corporation
shall itself pay, or provide for payment of, such benefits and the service credit for
benefits provided for in Section 5(A)(4) below, to the Executive, his dependents and
Beneficiary; and




     (4) The period from the Date of Termination until the end of the Termination Period
shall be considered:




	 	(a)	 	Service with the Corporation for the purpose of
continued credits under the employee benefit plans referred to in
Section 3(D) above and all other benefit plans of the Corporation
applicable to the Executive or his Beneficiary as in effect immediately
prior to Termination but prior to any reduction of benefits thereunder
as the result of amendment or termination during the COC Employment
Period, and
	 
	 	(b)	 	Employment with the Corporation for purposes of
determining payments and other rights in respect of awards made or
accrued and award opportunities granted prior to Termination under the
executive incentive plans referred to in Section 3(C) above and all
other incentive plans of the Corporation in which the Executive was a
participant prior to Termination; and






     (5) In addition to the severance and other benefits described in Sections 5(A)(1)
through 5(A)(4) above, to the extent not theretofore paid or provided, the Corporation shall
timely pay or provide to the Executive and/or the Executive’s dependents and/or heirs any
other amounts or benefits required to be paid or provided to such individuals under any
plan, program, policy or practice or contract or agreement of the Corporation and its
Affiliated Companies as in effect and applicable generally to other senior



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executives of the
Corporation and its Affiliated Companies and their families during the 90-day period
immediately preceding the Date of Termination or, if more favorable to the Executive, as in
effect generally thereafter with respect to other senior executives of the Corporation and
its Affiliated Companies and their families (such other amounts and benefits shall be
referred to below as the “Other Benefits”); and




     (6) During the Termination Period, the Corporation shall continue to provide to the
Executive the financial, estate and tax planning services that were provided to the
Executive during the 90-day period immediately prior to the Change of Control or, if more
favorable to the Executive, as in effect generally at any time thereafter with respect to
other senior executives of the Corporation and its Affiliated Companies; and




     (7) The Corporation shall pay on behalf of Executive the fee of an independent
outplacement firm selected by the Executive for outplacement services in an amount equal to
the actual fee for such service up to a total of $35,000.



     (B) [intentionally left blank]



     (C) Cause; Other Than For Good Reason. If the Executive’s employment shall be
terminated for Cause during the COC Employment Period, the Corporation shall have no further
obligations to the Executive under this Agreement other than the obligation to pay the Executive’s
Annual Base Salary, any compensation previously deferred by the Executive (together with any
accrued interest or
earnings thereon), and accrued vacation pay through the Date of Termination, in each case to
the extent not theretofore paid, and any other amounts or benefits to which the Executive and/or
the Executive’s family is otherwise entitled under the terms of any employee benefit or incentive
plan of the Corporation. If the Executive terminates employment during the COC Employment Period,
excluding a termination for Good Reason following a Change of Control, the Corporation shall have
no further obligations to the Executive, other than to pay the Executive’s Annual Base Salary, any
compensation previously deferred by the Executive (together with any accrued interest or earnings
thereon), and accrued vacation pay through the termination date, in each case to the extent not
theretofore paid, any other benefits to which the Executive and/or the Executive’s family is
otherwise entitled under the terms of any employee benefit or incentive plan of the Corporation.



     (D) Death Or Disability.




     (1) In the event of the death of the Executive during the COC Employment Period, the
legal representative of the Executive shall be entitled to the compensation provided for in
Sections 3(A) and 3(B) above for the month in which death shall have taken place, at the
rate being paid at the time of death, and the COC Employment Period shall be deemed to have
ended as of the close of business on the last day of the month in which death shall have
occurred but without prejudice to any payments due in respect of the Executive’s death.




     (2) In the event of the Disability of the Executive during the COC Employment Period,
the Executive shall be entitled to the compensation provided for in Sections




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3(A) and 3(B)
above, at the rate being paid on the Disability Effective Date, for the period of such
Disability but not in excess of six months.




     The amount of any payments due under this Section 5(D)(2) shall be reduced by any
payments to which the Executive may be entitled for the same period because of disability
under any disability or pension plan of the Corporation or of any Subsidiary or Affiliate
thereof.



     (E) Resolution Of Disputes.




     (1) Right Of Election By Executive To Arbitrate Or Sue. In the event that the
Executive’s employment shall be terminated by the Corporation during the COC Employment
Period and such termination is alleged to be for Cause, or the Executive’s right to
terminate his employment under Section 4(C) above shall be questioned by the Corporation, or
the Corporation shall withhold payments or provision of benefits for any other reason, the
Executive shall have the right, in addition to all other rights and remedies provided by
law, at his election either to seek arbitration within the Toledo, Ohio area under the rules
of the American Arbitration Association by serving a notice to arbitrate upon the
Corporation or to institute a judicial proceeding, in either case within ninety days after
having received notice of termination of his employment or notice in any form that the
termination of his employment under Section 4(B) above is subject to question or that the
Corporation is withholding or proposes to withhold payments or provision of benefits.




     (2) Third-Party Stakeholder. In the event that the Corporation defaults on any
obligation set forth in Section 5(A) above, relating to Termination, and shall have failed
to remedy such default within thirty (30) days after having received written notice of such
default from the Executive, in addition to all other rights and remedies that the Executive
may have as a result of such default, the Executive may demand and the Corporation shall
thereupon be required to deposit, with the third-party stakeholder hereinafter described, an
amount equal to the undiscounted value of any and all undischarged, future obligations of the Corporation
under Section 5(A) above and such amount shall thereafter be held, paid, applied or
distributed by such third-party stakeholder for the purpose of satisfying such undischarged,
future obligations of the Corporation when and to the extent that they become due and
payable. Any interest or other income on such amount shall be retained by the third-party
stakeholder and applied, if necessary, by it to satisfy such obligations, provided,
however, that any interest or other income that is earned on such undischarged,
future obligations after the date that the third-party stakeholder determines, in its sole
discretion, that such obligations are due and owing to the Executive, shall be paid to the
Executive as earned. To the extent not theretofore expended, such amount (including any
remaining unexpended interest or other income) shall be repaid to the Corporation at such
time as the third-party stakeholder, in its sole discretion, reasonably exercised,
determines, upon the advice of counsel and after consultation with the Corporation and the
Executive or, in the event of his death, his Beneficiary, that all obligations of the
Corporation under Section 5(A) above have been substantially satisfied.



-13-









 






     Such amount shall, in the event of any question, be determined jointly by the firm of
certified public accountants regularly employed by the Corporation and a firm of certified
public accountants selected by the Executive, in each case upon the advice of actuaries to
the extent the certified public accountants consider necessary, and, in the event such two
firms of accountants are unable to agree on a resolution of the question, such amount shall
be determined by an independent firm of certified public accountants selected jointly by
both firms of accountants.




     The third-party stakeholder, the fees and expenses of which shall be paid by the
Corporation, shall be a national or state bank or trust company having a combined capital,
surplus and undivided profits and reserves of not less than Ten Million Dollars
($10,000,000) which is duly authorized and qualified to do business in the state in which
the Executive resides at the time of such default.



6. NON-EXCLUSIVITY OF RIGHTS.




     Except as provided in Sections 5(A)(2), 5(B) and 5(C) above, nothing in this Agreement shall
prevent or limit the Executive’s continuing or future participation in any plan, program, policy or
practice provided by the Corporation or any of its Affiliated Companies and for which the Executive
may qualify, nor shall anything herein limit or otherwise affect such rights as the Executive may
have under any contract or agreement entered into after the date hereof with the Corporation or any
of its Affiliated Companies. Amounts which are vested benefits or which the Executive is otherwise
entitled to receive under any plan, policy, practice or program of, or any contract or agreement
entered into after the date hereof with, the Corporation or any of its Affiliated Companies at or
subsequent to the Date of Termination shall be payable in accordance with such plan, policy,
practice or program or contract or agreement except as explicitly modified by this Agreement.



7. FULL SETTLEMENT.




     The Corporation’s obligation to make the payments provided for in this Agreement and otherwise
to perform its obligations hereunder shall not be affected by any set-off, counterclaim,
recoupment, defense or other claim, right or action which the Corporation may have against the
Executive or others. In no event shall the Executive be obligated to seek other employment or take
any other action by way of mitigation of the amounts payable to the Executive under any of the
provisions of this Agreement and, except as provided in Section 5(A)(3) above, such amounts shall
not be reduced whether or not the Executive obtains other employment.



8. CERTAIN ADDITIONAL PAYMENTS BY THE CORPORATION.




     (A) Anything in this Agreement to the contrary notwithstanding and except as set forth below,
in the event it shall be determined that any Payment would be subject to the Excise Tax, then the
Executive shall be entitled to receive an additional payment (the “Gross-Up Payment”) in an amount
such that, after payment by the Executive of all taxes (and any interest or penalties imposed with
respect to such taxes), including, without limitation, any income taxes (and any interest and
penalties imposed with respect thereto) and Excise Tax imposed upon the Gross-Up Payment, the
Executive retains an amount of the Gross-Up Payment equal to the Ex-



-14-









 







cise Tax imposed upon the
Payments. Notwithstanding the foregoing provisions of this Section 8(A), if it shall be determined
that the Executive is entitled to the Gross-Up Payment, but that the Parachute Value of all
Payments does not exceed 110% of the Safe Harbor Amount, then no Gross-Up Payment shall be made to
the Executive and the amounts payable under this Agreement shall be reduced so that the Parachute
Value of all Payments, in the aggregate, equals the Safe Harbor Amount. The reduction of the
amounts payable hereunder, if applicable, shall be made by first reducing the payments under
Section 5(A)(2), unless an alternative method of reduction is elected by the Executive, and in any
event shall be made in such a manner as to maximize the Value of all Payments actually made to the
Executive. For purposes of reducing the Payments to the Safe Harbor Amount, only amounts payable
under this Agreement (and no other Payments) shall be reduced. If the reduction of the amount
payable under this Agreement would not result in a reduction of the Parachute Value of all Payments
to the Safe Harbor Amount, no amounts payable under the Agreement shall be reduced pursuant to this
Section 8(A). The Corporation’s obligation to make Gross-Up Payments under this Section 8 shall
not be conditioned upon the Executive’s termination of employment.



     (B) Subject to the provisions of Section 8(C), all determinations required to be made under
this Section 8, including whether and when a Gross-Up Payment is required, the amount of such
Gross-Up Payment and the assumptions to be utilized in arriving at such determination, shall be
made by the Corporation’s independent auditors as of the Change of Control or any earlier date of a
determination hereunder (the “Accounting Firm”). The Accounting Firm shall provide detailed
supporting calculations both to the Corporation and the Executive within 15 business days of the
receipt of notice from the Executive that there has been a Payment or such earlier time as is
requested by the Corporation. In the event that the Accounting Firm is serving as accountant or
auditor for the individual, entity or group effecting the Change of Control or the appointment of
the Accounting Firm is not permitted by law, the Executive may appoint another nationally
recognized accounting firm to make the determinations required hereunder (which accounting firm shall then be referred to as the Accounting Firm hereunder). All fees and
expenses of the Accounting Firm shall be borne solely by the Corporation. Any Gross-Up Payment, as
determined pursuant to this Section 8, shall be paid by the Corporation to the Executive within 5
days of the receipt of the Accounting Firm’s determination. Any determination by the Accounting
Firm shall be binding upon the Corporation and the Executive. As a result of the uncertainty in
the application of Section 4999 of the Internal Revenue Code of 1986, as amended (the “Code”) at
the time of the initial determination by the Accounting Firm hereunder, it is possible that
Gross-Up Payments that will not have been made by the Corporation should have been made (the
“Underpayment”), consistent with the calculations required to be made hereunder. In the event the
Corporation exhausts its remedies pursuant to Section 8(C) and the Executive thereafter is required
to make a payment of any Excise Tax, the Accounting Firm shall determine the amount of the
Underpayment that has occurred and any such Underpayment shall be promptly paid by the Corporation
to or for the benefit of the Executive.



     (C) The Executive shall notify the Corporation in writing of any claim by the Internal Revenue
Service that, if successful, would require the payment by the Corporation of the Gross-Up Payment.
Such notification shall be given as soon as practicable, but no later than 10 business days after
the Executive is informed in writing of such claim. The Executive shall apprise the Corporation of
the nature of such claim and the date on which such claim is requested to be paid. The Executive
shall not pay such claim prior to the expiration of the 30-day period follow-



-15-









 







ing the date on which
the Executive gives such notice to the Corporation (or such shorter period ending on the date that
any payment of taxes with respect to such claim is due). If the Corporation notifies the Executive
in writing prior to the expiration of such period that the Corporation desires to contest such
claim, the Executive shall:




     (1) give the Corporation any information reasonably requested by the Corporation
relating to such claim,




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




     (3) cooperate with the Corporation in good faith in order effectively to contest such
claim, and




     (4) permit the Corporation to participate in any proceedings relating to such claim;


provided, however, that the Corporation shall bear and pay directly all costs and
expenses (including additional interest and penalties) incurred in connection with such contest,
and shall indemnify and hold the Executive harmless, on an after-tax basis, for any Excise Tax or
income tax (including interest and penalties) imposed as a result of such representation and
payment of costs and expenses. Without limitation on the foregoing provisions of this Section
8(C), the Corporation shall control all proceedings taken in connection with such contest, and, at
its sole discretion, may pursue or forgo any and all administrative appeals, proceedings, hearings
and conferences with the applicable taxing authority in respect of such claim and may, at its sole
discretion,
either pay the tax claimed to the appropriate taxing authority on behalf of the Executive and
direct the Executive to sue for a refund or contest the claim in any permissible manner, and the
Executive agrees to prosecute such contest to a determination before any administrative tribunal,
in a court of initial jurisdiction and in one or more appellate courts, as the Corporation shall
determine; provided, however, that, if the Corporation pays such claim and directs
the Executive to sue for a refund, the Corporation shall indemnify and hold the Executive harmless,
on an after-tax basis, from any Excise Tax or income tax (including interest or penalties) imposed
with respect to such payment or with respect to any imputed income in connection with such payment;
and provided, further, that any extension of the statute of limitations relating to
payment of taxes for the taxable year of the Executive with respect to which such contested amount
is claimed to be due is limited solely to such contested amount. Furthermore, the Corporation’s
control of the contest shall be limited to issues with respect to which the Gross-Up Payment would
be payable hereunder, and the Executive shall be entitled to settle or contest, as the case may be,
any other issue raised by the Internal Revenue Service or any other taxing authority.




     (D) If, after the receipt by the Executive of a Gross-Up Payment or payment by the Corporation
of an amount on the Executive’s behalf pursuant to Section 8(C), the Executive becomes entitled to
receive any refund with respect to the Excise Tax to which such Gross-Up Payment relates or with
respect to such claim, the Executive shall (subject to the Corporation’s complying with the
requirements of Section 8(C), if applicable) promptly pay to the Corporation



-16-









 







the amount of such
refund (together with any interest paid or credited thereon after taxes applicable thereto). If,
after payment by the Corporation of an amount on the Executive’s behalf pursuant to Section 8(C), a
determination is made that the Executive shall not be entitled to any refund with respect to such
claim and the Corporation does not notify the Executive in writing of its intent to contest such
denial of refund prior to the expiration of 30 days after such determination, then the amount of
such payment shall offset, to the extent thereof, the amount of Gross-Up Payment required to be
paid.



     (E) Notwithstanding any other provision of this Section 8, the Corporation may, in its sole
discretion, withhold and pay over to the Internal Revenue Service or any other applicable taxing
authority, for the benefit of the Executive, all or any portion of any Gross-Up Payment, and the
Executive hereby consents to such withholding.



     (F) Definitions. The following terms shall have the following meanings for purposes
of this Section 8.




     (1) “Excise Tax” shall mean the excise tax imposed by Section 4999 of the Code,
together with any interest or penalties imposed with respect to such excise tax.




     (2) “Parachute Value” of a Payment shall mean the present value as of the date of the
change of control for purposes of Section 280G of the Code of the portion of such Payment
that constitutes a “parachute payment” under Section 280G(b)(2), as determined by the
Accounting Firm for purposes of determining whether and to what extent the Excise Tax will
apply to such Payment.




     (3) A “Payment” shall mean any payment or distribution in the nature of compensation
(within the meaning of Section 280G(b)(2) of the Code) to or for the benefit of the
Executive, whether paid or payable pursuant to this Agreement or otherwise.




     (4) The “Safe Harbor Amount” means 2.99 times the Executive’s “base amount,” within the
meaning of Section 280G(b)(3) of the Code.




     (5) “Value” of a Payment shall mean the economic present value of a Payment as of the
date of the change of control for purposes of Section 280G of the Code, as determined by the
Accounting Firm using the discount rate required by Section 280G(d)(4) of the Code.



9. CONFIDENTIAL INFORMATION.




     (A) The Executive agrees not to disclose, either while in the Corporation’s employ or at any
time thereafter, to any person not employed by the Corporation, or not engaged to render services
to the Corporation, except with the prior written consent of an officer authorized to act in the
matter by the Board of Directors of the Corporation, any confidential information obtained by him
while in the employ of the Corporation, including, without limitation, information relating to any
of the Corporation’s inventions, processes, formulae, plans, devices, compilations of information,
methods of distribution, customers, client relationships, marketing strategies or trade secrets;
provided, however, that this provision shall not preclude the Executive from use or
disclosure of information known generally to the public or of information not considered
confi-



-17-









 







dential by persons engaged in the business conducted by the Corporation or from disclosure
required by law or Court order. The agreement herein made in this Section 9(A) shall be in
addition to, and not in limitation or derogation of, any obligations otherwise imposed by law upon
the Executive in respect of confidential information and trade secrets of the Corporation, its
Subsidiaries and Affiliates.



     (B) The Executive also agrees that upon leaving the Corporation’s employ he will not take with
him, without the prior written consent of an officer authorized to act in the matter by the Board
of Directors of the Corporation, and he will surrender to the Corporation any record, list,
drawing, blueprint, specification or other document or property of the Corporation, its
Subsidiaries and Affiliates, together with any copy and reproduction thereof, mechanical or
otherwise, which is of a confidential nature relating to the Corporation, its Subsidiaries and
Affiliates, or, without limitation, relating to its or their methods of distribution, client
relationships, marketing strategies or any description of any formulae or secret processes, or
which was obtained by him or entrusted to him during the course of his employment with the
Corporation.



10. COMPETITION.




     (A) The Executive hereby agrees that he will not engage in Competition at any time (i) during
the COC Employment Period, (ii) during the thirty-six (36) months immediately following any
termination of his employment with the Corporation that is not a Termination and (iii) in the event
of a Termination, during the twelve (12) months immediately following the Termination.



     (B) The word “Competition” for the purposes of this Agreement shall mean:




     (1) taking a management position with or control of a business engaged in the design,
development, manufacture, marketing or distribution of products, which constituted 15% or
more of the sales of the Corporation and its Subsidiaries and Affiliates during the last
fiscal year of the Corporation preceding the termination of the Executive’s employment, in
any geographical area in which the Corporation, its Subsidiaries or Affiliates is at the
time engaging in the design, development, manufacture, marketing or distribution of such
products; provided, however, that in no event shall ownership of less than
5% of the outstanding capital stock entitled to vote for the election of directors of a
corporation with a class of equity securities held of record by more than 500 persons,
standing alone, be deemed Competition with the Corporation within the meaning of this
Section 10,




     (2) soliciting any person who is a customer of the businesses conducted by the
Corporation, or any business in which the Executive has been engaged on behalf of the
Corporation and its Subsidiaries or Affiliates at any time during the term of this Agreement
on behalf of a business described in clause (i) of this Section 10(B),




     (3) inducing or attempting to persuade any employee of the Corporation or any of its
Subsidiaries or Affiliates to terminate his employment relationship in order to enter into
employment with a business described in clause (i) of this Subsection 10(B), or



-18-









 






     (4) making or publishing any statement which is, or may reasonably be considered to be,
disparaging of the Corporation or any of its Subsidiaries or Affiliates, or directors,
officers, employees or the operations or products of the Corporation or any of its
Subsidiaries or Affiliates, except to the extent the Executive, during the COC Employment
Period, makes the statement to employees or other representatives of the Corporation or any
of its Subsidiaries or Affiliates in furtherance of the Corporation’s business and the
performance of his services hereunder.



11. SUCCESSORS.



     Except as otherwise provided herein,



     (A) This Agreement shall be binding upon and shall inure to the benefit of the Executive, his
heirs and legal representatives, and the Corporation and its successors as provided in this Section
11.



     (B) This Agreement shall be binding upon and inure to the benefit of the Corporation and any
successor of the Corporation, including, without limitation, any corporation or corporations
acquiring, directly or indirectly, 50% or more of the outstanding securities of the Corporation, or
all or substantially all of the assets of the Corporation, whether by merger, consolidation, sale
or otherwise (and such successor shall thereafter be deemed embraced within the term “the
Corporation” for the purposes of this Agreement), but shall not otherwise be assignable by the
Corporation.



12. CERTAIN DEFINITIONS.




     The following defined terms used in this Agreement shall have the meanings indicated:



     (A) Beneficiary. The term “Beneficiary” as used in this Agreement shall, in the event
of the death of the Executive, mean an individual or individuals and/or an entity or entities,
including, without limitation, the Executive’s estate, duly designated on a form filed with the
Corporation by the Executive to receive any amount that may be payable after his death or, if no
such individual, individuals, entity or entities has or have been so designated, or is at the time
in existence or able to receive any such amount, the Executive’s estate.



     (B) Change Of Control. A “Change of Control” shall mean the first to occur of any of
the following events:




     (1) any Person is or becomes the Beneficial Owner, directly or indirectly, of
securities of the Corporation (not including in the securities Beneficially Owned by such
Person any securities acquired directly from the Corporation or its Affiliates) representing
20% or more of the combined voting power of the Corporation’s then outstanding securities,
excluding any Person who becomes such a Beneficial Owner in connection with any acquisition
pursuant to a transaction that complies with Sections 12(B)(3)(a), 12(B)(3)(b) and
12(B)(3)(c); or




     (2) the following individuals cease for any reason to constitute a majority of the
number of directors then serving: individuals who, on the date of this Agreement,



-19-









 







constitute the Board (the “Incumbent Board”) and any new director whose appointment or
election by the Board or nomination for election by the Corporation’s stockholders was
approved or recommended by a vote of at least two-thirds (2/3) of the directors then still
in office who either were directors on the date hereof or whose appointment, election or
nomination for election was previously so approved or recommended. For purposes of the
preceding sentence, any director whose initial assumption of office is in connection with an
actual or threatened election contest, including but not limited to a consent solicitation,
relating to the election of directors of the Corporation, shall not be treated as members of
the Incumbent Board; or




     (3) there is consummated a merger, reorganization, statutory share exchange or
consolidation or similar corporate transaction involving the Corporation or any direct or
indirect Subsidiary of the Corporation, a sale or other disposition of all or substantially
all of the assets of the Corporation, or the acquisition of assets or stock of another
entity by the Corporation or any of its Subsidiaries (each a “Business Combination”), in
each case unless, immediately following such Business Combination, (a) the voting securities
of the Corporation outstanding immediately prior to such Business Combination (the “Prior
Voting Securities”) continue to represent (either by remaining outstanding or by being
converted into voting securities of the surviving entity of the Business Combination or any
parent thereof) at least 50% of the combined voting power of the securities of the
Corporation or such surviving entity or any parent thereof outstanding immediately after
such Business Combination, (b) no Person is or becomes the Beneficial Owner, directly
or indirectly, of securities of the Corporation or the surviving entity of the Business
Combination or any parent thereof (not including in the securities Beneficially Owned by
such Person any securities acquired directly from the Corporation or its Affiliates)
representing 20% or more of the combined voting power of the securities of the Corporation
or surviving entity of the Business Combination or any parent thereof, except to the extent
that such ownership existed prior to the Business Combination and (c) at least a majority of
the members of the board of directors of the Corporation or the surviving entity of the
Business Combination or any parent thereof were members of the Incumbent Board at the time
of the execution of the initial agreement or of the action of the Board providing for such
Business Combination; or




     (4) the stockholders of the Corporation approve a plan of complete liquidation or
dissolution of the Corporation.


Notwithstanding the foregoing, any disposition of all or substantially all of the assets of the
Corporation pursuant to a spinoff, splitup or similar transaction (a “Spinoff”) shall not be
treated as a Change of Control if, immediately following the Spinoff, holders of the Prior Voting
Securities immediately prior to the Spinoff continue to beneficially own, directly or indirectly,
more than 50% of the combined voting power of the then outstanding securities of both entities
resulting from such transaction, in substantially the same proportions as their ownership,
immediately prior to such transaction, of the Prior Voting Securities; provided, that if
another Business Combination involving the Corporation occurs in connection with or following a
Spinoff, such Business Combination shall be analyzed separately for purposes of determining whether
a Change of Control has occurred;




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“Beneficial Owner” shall have the meaning set forth in Rule 13d-3 under the Exchange Act.



“Exchange Act” shall mean the Securities Exchange Act of 1934, as amended from time to time.



“Person” shall have the meaning given in Section 3(a)(9) of the Exchange Act, as modified and used
in Sections 13(d) and 14(d) thereof, except that such term shall not include (i) the Corporation or
any of its Subsidiaries, (ii) a trustee or other fiduciary holding securities under an employee
benefit plan of the Corporation or any of its Affiliates, (iii) an underwriter temporarily holding
securities pursuant to an offering of such securities or (iv) a corporation owned, directly or
indirectly, by the stockholders of the Corporation in substantially the same proportions as their
ownership of stock of the Corporation.




     (C) Change Of Control Date. The “Change of Control Date” shall mean the first date on
which a Change of Control occurs. Anything in this Agreement to the contrary notwithstanding, if a
Change of Control occurs and if the Executive’s employment with the Corporation is terminated or
the Executive ceases to have the position with the Corporation set forth in Section 2(A) above
prior to the date on which the Change of Control occurs, and if it is reasonably demonstrated by
the Executive that such termination or cessation (i) was at the request of a third party who has
taken steps reasonably calculated to effect the Change of Control or (ii) otherwise arose in
connection with or anticipation of the Change of Control, then for all purposes of this Agreement
the “Change of Control Date” shall mean the date immediately prior to the date of such termination
or cessation.



13. AMENDMENT OR MODIFICATION; WAIVER.




     No provision of this Agreement may be amended, modified or waived unless such amendment,
modification or waiver shall be authorized by the Board of Directors of the Corporation or any
authorized committee of the Board of Directors and shall be agreed to in writing, signed by the
Executive and by an officer of the Corporation thereunto duly authorized. Except as otherwise
specifically provided in this Agreement, no waiver by either party hereto of any breach by the
other party hereto of any condition or provision of this Agreement to be performed by such other
party shall be deemed a waiver of a subsequent breach of such condition or provision or a waiver of
a similar or dissimilar provision or condition at the same time or at any prior or subsequent time.



14. MISCELLANEOUS.




     (A) This Agreement shall be governed by and construed in accordance with the laws of the State
of Ohio, without reference to principles of conflict of laws. The captions of this Agreement are
not part of the provisions hereof and shall have no force or effect.



     (B) All notices and other communications hereunder shall be in writing and shall be given by
hand delivery to the other party or by registered or certified mail, return receipt requested,
postage prepaid, addressed as follows:



-21-









 





	 	 	 
	If to the Executive:

	 	Copy to:
	 
	 	 
	Paul E. Miller

	 	Paul E. Miller
	4500 Dorr Street

	 	c/o Dana Corporation
	Toledo, OH 43697

	 	P.O. Box 1000
	 

	 	Toledo, Ohio 43615
	 
	 	 
	If to the Corporation:
	 	 
	Dana Corporation
	 	 
	4500 Dorr Street
	 	 
	Toledo, Ohio 43615
	 	 
	Attention: Secretary
	 	 





or to such other address as either party shall have furnished to the other in writing in accordance
herewith. Notice and communications shall be effective when actually received by the addressee.




     (C) The invalidity or unenforceability of any provision of this Agreement shall not affect the
validity or enforceability of any other provision of this Agreement.



     (D) The Corporation may withhold from any amounts payable under this Agreement such Federal,
state or local taxes as it determines is required to be withheld pursuant to any applicable law or
regulation.



     (E) When used herein in connection with plans, programs and policies relating to the
Executive, employees, compensation, benefits, perquisites, executive benefits, services and similar words and phrases, the word “Corporation” shall be deemed to include all wholly-owned
Subsidiaries of the Corporation.



     (F) This instrument contains the entire agreement of the parties concerning the subject
matter, and all promises, representations, understandings, arrangements and prior agreements
concerning the subject matter are merged herein and superseded hereby, including, without
limitation, the agreement between the parties dated December 8, 1997.



     (G) No right, benefit or interest hereunder, shall be subject to anticipation, alienation,
sale, assignment, encumbrance, charge, pledge, hypothecation, or set-off in respect of any claim,
debt or obligation, or to execution, attachment, levy or similar process, or assignment by
operation of law. Any attempt, voluntary or involuntary, to effect any action specified in the
immediately preceding sentence shall, to the full extent permitted by law, be null, void and of no
effect.



     (H) The Executive shall not have any right, title, or interest whatsoever in or to any
investments which the Corporation may make to aid it in meeting its obligations under this
Agreement.



     (I) Subject to the provisions of Section 5(E) above, all payments to be made under this
Agreement shall be paid from the general funds of the Corporation and no special or separate fund
shall be established and no segregation of assets shall be made to assure payment of amounts
payable under this Agreement.



-22-









 





     (J) The Corporation and the Executive recognize that each party will have no adequate remedy
at law for breach by the other of any of the agreements contained in this Agreement and, in the
event of any such breach, the Corporation and the Executive hereby agree and consent that the other
shall be entitled to a decree of specific performance, mandamus or other appropriate remedy to
enforce performance of such agreements.



     (K) Subject to the provisions of Section 5(E) above, nothing contained in this Agreement shall
create or be construed to create a trust of any kind, or a fiduciary relationship between the
Corporation and the Executive or any other person.



     (L) Subject to the provisions of Section 5(E) above, to the extent that any person acquires a
right to receive payments from the Corporation under this Agreement, except to the extent provided
by law such right shall be no greater than the right of an unsecured general creditor of the
Corporation.



     (M) In the event of the Executive’s death or a judicial determination of his incompetence,
reference in this Agreement to the Executive shall be deemed, where appropriate, to refer to his
legal representative or, where appropriate, to his Beneficiary.



     (N) If any event provided for in this Agreement is scheduled to take place on a legal holiday,
such event shall take place on the next succeeding day that is not a legal holiday.



     (O) This Agreement is not intended to and shall not infer or imply any right on the part of
the Executive to continue in the employ of the Corporation, or any Subsidiary or Affiliate of the
Corporation, prior to a Change of Control, and is not intended in any way to limit the right
of the Corporation to terminate the employment of the Executive, with or without assigning a
reason therefor, at any time prior to a Change of Control. Nor is this Agreement intended to nor
shall it require or imply an obligation on the part of the Executive to continue in the employment
of the Corporation, or any Subsidiary or Affiliate of the Corporation, prior to a Change of
Control. Neither the Corporation nor the Executive shall incur any liability under this Agreement
if the employment of the Executive shall be terminated by the Corporation or by the Executive prior
to a Change of Control.



-23-









 





     IN WITNESS WHEREOF, the Executive and, pursuant to due authorization from its Board of
Directors, the Corporation have caused this Agreement to be executed as of the day and year first
above written.



	 	 	 	 	 	 	 
	 	 	DANA CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Michael J. Burns
 

Michael J. Burns, Chairman & CEO
	 	 
	 
	 	 	 	 	 	 
	 	 	/s/ Paul E. Miller	 	 
	 	 	 	 	 
	 	 	Executive	 	 






-24-









 






Exhibit A to Agreement

Made as of May 3, 2004 Between

Dana Corporation and Paul E. Miller




     As of May 3, 2004, for purposes of Section 2(A),



     The office(s) and title(s) of the Executive are Vice- President of Purchasing of the
Corporation;



     The reporting responsibility of the Executive is to report directly to the [Chief Executive
Officer and] Chairman of the Board of Directors (or acting Chairman of the Board of Directors); and



     The duties and responsibilities of the Executive are:




     Serves as Vice-President of Purchasing of the Corporation, in which capacity he
has overall responsibility for the development and implementation of the
Corporation’s product purchasing strategies.



 









 





Exhibit B To Agreement

Made as of May 3, 2004 Between

Dana Corporation and Paul E. Miller




FORM OF RELEASE AGREEMENT




     This Release Agreement (“Release”) is entered into as of this ___day of ___,
hereinafter “Execution Date”, by and between [Executive Full Name] (hereinafter “Executive”), and
[Employer Full Name] and its successors and assigns (hereinafter, the “Corporation”). The
Executive and the Corporation are sometimes collectively referred to as the “Parties”.




	1.	 	     The Executive’s employment with the Corporation is terminated effective [Month, Day, Year]
(hereinafter “Termination Date”). The Corporation agrees to provide the Executive the
severance benefits provided for in his/her Change of Control Agreement with the Corporation,
dated as of [ ] (the “COC Agreement”), after he/she executes this Release and the Release
becomes effective pursuant to its terms [FOR 40+ and does not revoke it as permitted in
Section 4 below, the expiration of such revocation period being the “Effective Date”)].






	2.	 	     Executive represents that he has not filed, and will not file, any complaints, lawsuits,
administrative complaints or charges relating to his employment with, or resignation from, the
Corporation[; provided, however, that nothing contained in this Section 2
shall prohibit Executive from bringing a claim to challenge the validity of the ADEA Release
in Section 4 herein]. In consideration of the benefits described in Section 1, for himself
and his heirs, administrators, representatives, executors, successors and assigns
(collectively, “Releasers”), Executive agrees to release the Corporation, its subsidiaries,
affiliates, and their respective parents, direct or indirect subsidiaries, divisions,
affiliates and related companies or entities, regardless of its or their form of business
organization, any predecessors, successors, joint ventures, and parents of any such entity,
and any and all of their respective past or present shareholders, partners, directors,
officers, employees, consultants, independent contractors, trustees, administrators, insurers,
agents, attorneys, representatives and fiduciaries, including without limitation all persons
acting by, through, under or in concert with any of them (collectively, the “Released
Parties”), from any and all claims, charges, complaints, causes of action or demands relating
to his employment or termination of employment that Executive and his Releasers now have or
have ever had against the Released Parties, whether known or unknown. This Release
specifically excludes claims, charges, complaints, causes of action or demand that (a)
post-date the Termination Date, (b) relate to unemployment compensation claims, (c) involve
rights to benefits in which Executive is vested as of the Termination Date under any employee
benefit plans and arrangements of the Corporation, (d) relate to claims for indemnification by
Employee, or (e) involve obligations owed to Executive by the Corporation under the COC
Agreement.






	3.	 	     The Corporation, on its own behalf and on behalf of the Released Parties, hereby releases
Executive from all claims, causes of actions, demands or liabilities which arose against the
Executive on or before the time it signs this Agreement, whether known or unknown. This
Paragraph, however, does not apply to or adversely affect any claims against Executive which
allege or involve obligations owed by him to the Corporation under the COC Agree




 









 






	 	 	ment. The Corporation will indemnify Executive for reasonable attorneys’ fees, costs and damages which
may arise in connection with any proceeding by the Corporation or any Released Party which is
inconsistent with this Release by the Corporation and the Released Parties.
	 
	4.	 	     [FOR EMPLOYEES OVER 40 ONLY — In further recognition of the above, Executive hereby voluntarily and
knowingly waives all rights or claims that he/she may have against the Released Parties arising under the
Age Discrimination in Employment Act of 1967, as amended (“ADEA”), other than any such rights or claims that
may arise after the date of execution of this Release. Executive specifically agrees and acknowledges that:
(A) the release in this Section 4 was granted in exchange for the receipt of consideration that exceeds
the amount to which he/she would otherwise be entitled to receive upon termination of his/her employment;
(B) he/she has hereby been advised in writing by the Corporation to consult with an attorney prior to
executing this Release; (C) the Corporation has given him/her a period of up to twenty-one (21) days within
which to consider this Release, which period shall be waived by the Executive’s voluntary execution prior
to the expiration of the twenty-one day period, and he/she has carefully read and voluntarily signed this
Release with the intent of releasing the Released Parties to the extent set forth herein; and (D) following
his/her execution of this Release he/she has seven (7) days in which to revoke his/her release as set forth
in this Section 4 only and that, if he/she chooses not to so revoke, the Release in this Section 4 shall
then become effective and enforceable and the payment listed above shall then be made to him/her in accordance
with the terms of this Release. To cancel this Release, Executive understands that he/she must give a written
revocation to the General Counsel of the Corporation at [ ]A, either by hand delivery or certified mail within
the seven-day period. If he/she rescinds the Release, it will not become effective or enforceable and he/she
will not be entitled to any benefits from the Corporation.]
	 
	5.	 	     If any provision of this Release is held invalid, the invalidity of such provision shall not affect any other provisions of this Release.
This Release is governed by, and construed and interpreted in
accordance with the laws of the State of [ ], without regard to
principles of conflicts of law. Employee consents to venue and
personal jurisdiction in the State of [ ] for disputes arising under this
Release. This Release represents the entire understanding with the Parties with respect to subject matter herein, and no other inducements
or representations have been made or relied upon by the Parties. This Release shall be binding upon and inure to the benefit of Employee,
his heirs and legal representatives, and the Corporation and its successors as provided in this Section 5. Any modification of this Release
must be made in writing and be signed by Executive and the Corporation.





	 	 	 
	 

A      Insert address.

	 	 






 









 






ACCEPTED AND AGREED TO:




	 	 	 	 	 
	 

[Employer Full Name]

	 	 

[Employee Full Name]
	 	 






	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	Dated:
	 	 	 	 	 	Dated: