EX-10.8






Exhibit 10.8




UNITED STATES DEPARTMENT OF THE TREASURY




December 29, 2008




General Motors Corporation

300 Renaissance Drive

Detroit, MI 48265-3000




     Re: Commitment Letter for Rights Offering Liquidity



Ladies and Gentlemen:




     The United States Department of the Treasury (“UST”) hereby irrevocably commits, upon
the terms and subject to the conditions set forth in this commitment letter (the “Commitment
Letter”) and in the Term Sheet attached hereto as Exhibit A (the “Term Sheet”), to
provide up to $1 billion (as provided in Appendix A) in the form of a single-draw term loan for use
by General Motors Corporation (the “Borrower;” such facility, the “Facility”) to
purchase Class B Membership Interests of GMAC LLC (the “GMAC Equity”) pursuant to an
offering of approximately $1.25 billion of Common Membership Interests of GMAC LLC to be made to
the existing holders of GMAC LLC Common Membership Interests.



     The Facility will be made available to the Borrower on substantially the same terms and
conditions as the Loan and Security Agreement for the $13.4 billion credit facility being provided
to the Borrower by UST (the “GM Loan”), except (1) the Facility will be secured solely by
the GMAC Equity or other collateral acceptable (collectively, the “GMAC Collateral”) to
lender, and (2) as otherwise provided in the Term Sheet and Appendix A. UST’s commitment hereunder
is subject to (a) entry into a loan agreement and other documentation on terms mutually
satisfactory to the Borrower and UST on or before January 16, 2009 or such other date as is
mutually agreed between the parties, (b) the closing and initial funding of the GM Loan, (c) since
the date of this Commitment Letter, no event described in Section 5.2(f) of the Membership Interest
Subscription Agreement between GMAC LLC, the Borrower and FIM Holdings LLC relating to the GMAC
Rights Offering (as defined in the Term Sheet) shall have occurred, and (d) satisfaction of the
other conditions set forth or referred to in the Term Sheet. The terms and conditions of UST’s
commitment hereunder and of the Facility are not limited to those set forth herein and in the Term
Sheet. Those matters not covered by the provisions hereof and of the Term Sheet will be addressed
in the loan agreement for the Facility, subject to the approval and agreement of UST and the
Borrower.



     You agree (a) to indemnify and hold harmless UST and its affiliates and their respective
officers, employees, advisors, and agents (each, an “Indemnified Person”) from and against
any and all losses, claims, damages and liabilities to which any such Indemnified Person may



 









 







become subject arising out of or in connection with this Commitment Letter, the Facility, the
use of the proceeds thereof or any related transaction or any claim, litigation, investigation or
proceeding relating to any of the foregoing, regardless of whether any Indemnified Person is a
party thereto, and to reimburse each Indemnified Person upon demand for any legal or other expenses
incurred in connection with investigating or defending any of the foregoing, provided that the
foregoing indemnity will not, as to any Indemnified Person, apply to losses, claims, damages,
liabilities or related expenses to the extent they are found by a final, non-appealable judgment of
a court to arise from (i) the willful misconduct or gross negligence of such Indemnified Person or
(ii) a breach by an Indemnified Person of the terms of this Commitment Letter, and (b) to reimburse
UST and its affiliates on demand for all reasonable out-of-pocket expenses (including, without
limitation reasonable fees, time charges and disbursements of counsel) incurred in connection with
the Facility and any related documentation (including, without limitation this Commitment Letter,
the Term Sheet and the definitive financing documentation) or the administration, amendment,
modification or waiver thereof. No Indemnified Person shall be liable for any special, indirect,
consequential or punitive damages in connection with the Facility.



     This Commitment Letter shall not be assignable by the Borrower (and any purported assignment
without such consent shall be null and void), is intended to be solely for the benefit of the
Borrower and is not intended to confer any benefits upon, or create any rights in favor of, any
person other than the Borrower. This Commitment Letter may not be amended or waived except by an
instrument in writing signed by the Borrower and UST. This Commitment Letter may be executed in
any number of counterparts, each of which shall be an original, and all of which, when taken
together, shall constitute one agreement. Delivery of an executed signature page of this
Commitment Letter by facsimile transmission shall be effective as delivery of a manually executed
counterpart hereof. This Commitment Letter and the Term Sheet set forth the entire understanding
of the parties with respect thereto. This Commitment Letter shall be governed by, and construed in
accordance with applicable Federal law and the laws of the State of New York. If this Commitment
Letter, the Term Sheet or any act, omission or event hereunder or thereunder becomes the subject of
a dispute, the Borrower and UST each hereby waive trial by jury.



     The reimbursement and indemnification provisions contained herein and in the Term Sheet shall
remain in full force and effect regardless of whether definitive financing documentation shall be
executed and delivered and notwithstanding the termination of this Commitment Letter or UST’s
commitment hereunder; provided, that your obligations under this Commitment Letter shall
automatically terminate and be superseded by the provisions of the definitive documentation
relating to the Facility upon the initial funding thereunder, and you shall automatically be
released from all liability in connection therewith at such time.



     If the foregoing correctly sets forth our agreement, please indicate your acceptance of the
terms hereof and of the Term Sheet by returning to us an executed counterpart hereof not later than
6:00 p.m., Washington D.C. time today. UST’s commitment will expire at such time in the event UST
has not received such executed counterpart in accordance with the immediately preceding sentence.
This Commitment Letter and Term Sheet supersede any and all prior versions hereof and thereof.



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[Signature Page Follows]




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	 	Very truly yours,





THE UNITED STATES DEPARTMENT OF THE TREASURY

 	 
	 	By:  	/x/ Neel Kashkari
 	 
	 	 	Neel Kashkari 	 
	 	 	Interim Assistant Secretary of 

the
Treasury for Financial Stability 	 
	 



Accepted and agreed to as of

the date first written above by:




GENERAL MOTORS CORPORATION




By:      /x/ Ray G. Young                    

Name: Ray G. Young

Title: Executive Vice President and CFO




Signature Page to Commitment Letter for Rights Offering Liquidity





 









 








EXHIBIT A





 









 








Indicative Summary of Terms for

Secured Term Loan Facility




December 29, 2008



Based upon the preliminary information provided to the United States Department of the Treasury
(the “UST”) regarding the proposed Facility, the following Summary of Terms outlines the key terms
and conditions of the Facility. This Summary of Terms is not intended to be a comprehensive list
of all relevant terms and conditions of the transactions contemplated herein. Final terms will be
included in definitive documentation based on this Summary of Terms and executed by the applicable
parties. This Summary of Terms is intended for the sole benefit of the Company identified on
Appendix A and shall not be relied upon by any other person. Capitalized terms used herein or in
Appendix A and defined herein or in the Commitment Letter or Appendix A are used herein and therein
as so defined.




	 	 	 
	Facility:

	 	A term loan that is secured by a first priority security
interest in the Class B Membership Interests of GMAC LLC
purchased by Borrower in the GMAC Rights Offering and such
other collateral as the lender may require (collectively,
the “GMAC Equity”), and is subject to the terms and
conditions contained herein and in the definitive Facility
documentation.
	 
	 	 
	Borrower:

	 	As set forth on Appendix A.
	 
	 	 
	Lender:

	 	UST, on a fully committed basis.
	 
	 	 
	Closing Date:

	 	As set forth on Appendix A.
	 
	 	 
	Loan:

	 	Lender will make available to Borrower a loan in an
aggregate amount up to the amount set forth on Appendix A
(the “Loan Amount”), as further specified on Appendix A.
	 
	 	 
	Availability:

	 	Borrower may request Lender to fund a draw up to an amount
set forth on Appendix A (such funding, an “Advance”). At
the time of funding by the Lender (the “Advance Date”),
Borrower shall be in compliance with all of the covenants,
representations and warranties of this Facility.
	 
	 	 
	 

	 	Unless otherwise agreed by the UST, Borrower must provide the UST with its
request at least one (1) business day’s prior to the date on which the
Advance will be funded by Lender. For the avoidance of doubt, notice
received by the UST after 5:00 pm Washington, DC time on any business day
shall be deemed to be received on the following business day.
	 
	 	 
	Use of Funds:

	 	The Borrower shall utilize the proceeds from the Advance
as set forth on Appendix A.
	 
	 	 
	Currencies:

	 	The Advance and any prepayments and payments of fees and
indemnities and any other payments under the Facility
shall be made in United States Dollars or in the form of
the GMAC Equity.






 









 






	 	 	 
	Collateral:

	 	As set forth on Appendix A. As security for Borrower’s
performance of all of its obligations under the Facility,
Borrower will grant to Lender a security interest in and
to the Collateral (with the lien priority specified with
respect thereto on Appendix A).
	 
	 	 
	Maturity Date:

	 	The Facility will terminate and the aggregate outstanding
Advance and all fees, expenses, indemnities and other
amounts owing to Lender, will be due and fully payable on
the earlier of (i) the Expiration Date (as set forth on
Appendix A), and (ii) the date of exchange after the
Advance Date, at the option of the Lender, based upon the
facts and circumstances in existence at the time of the
exchange.
	 
	 	 
	Interest Rate:

	 	The Advance shall accrue interest at a rate per annum
equal to (i) the sum of (x) the greater of (A)
three-month LIBOR and (B) the LIBOR Floor, plus (y) the
Spread Amount, multiplied by (ii) the outstanding
principal balance of such Advance. The Interest Rate
shall be determined on the Closing Date and reset on each
Interest Payment Date and shall be calculated on a
360-day year basis for the actual number of days elapsed
(including the first day but excluding the last day)
occurring in the related Interest Period. Interest on
the Advance shall be payable in arrears on each Interest
Payment Date in respect of the previous Interest Period,
and together with all outstanding principal and other
amounts owing, on the Maturity Date.
	 
	 	 
	Interest Period:

	 	For the Advance, (i) initially, the period commencing on
the Advance Date and ending on the calendar day prior to
the next succeeding Interest Payment Date, and (ii)
thereafter, each period commencing on an Interest Payment
Date and ending on the calendar day prior to next
succeeding Interest Payment Date. Notwithstanding the
foregoing, no Interest Period may end after the Maturity
Date.
	 
	 	 
	Interest 

Payment Date:

	 	Set forth on Appendix A.
	 
	 	 
	LIBOR Floor:

	 	Set forth on Appendix A.
	 
	 	 
	Spread Amount:

	 	Set forth on Appendix A.
	 
	 	 
	Mandatory 

Prepayments:

	 	

Subject to any mandatory prepayments from the following
amounts required under existing secured credit
agreements, the Borrower shall apply 100% of the net cash
proceeds of any of the following transactions, to the
extent such transactions relate to collateral for the
Facility, to prepay, on a pro rata basis, the aggregate
outstanding Advance: (i) sales, liquidations or other
transfers of any Collateral, (ii) the incurrence by the
Borrower of any debt (other than permitted indebtedness
including the refinancing of prior indebtedness) or any
equity or other capital raises (other than contributions
of indemnity payments received by the Company






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	 	and required to be applied to satisfy obligations of its subsidiaries), either
public or private, whether in connection with a primary securities offering, a
business combination of any kind, or otherwise, (iii) to the extent
unencumbered, non-ordinary course asset sales (including aircraft divestments);
provided that, with respect to clause (ii), in no event will any of the
Collateral or Lender’s security interest therein be released to the Borrower
until the aggregate outstanding Advance, together with interest thereon at the
applicable Interest Rate and all fees, expenses, indemnities and other amounts
owing to Lender shall have been paid in full. Notwithstanding anything to the
contrary contained herein, any amounts advanced and repaid cannot be
reborrowed.
	 
	 	 
	Optional 

Prepayments:

	 	

Upon written notice to the Lender at least two
business days in advance, Borrower may prepay all or
a portion of the outstanding Advance, without
penalty; provided that in no event will any of the
Collateral be released to the Borrower until the
aggregate outstanding Advance, together with interest
thereon at the applicable Interest Rate and all fees,
expenses, indemnities and other amounts owing to
Lender shall have been paid in full. Notwithstanding
anything to the contrary contained herein, any
amounts advanced and repaid cannot be reborrowed.
	 
	 	 
	Executive Privileges
and Compensation:

	 	

Until such time as the Facility is repaid in full and
the UST ceases to own any equity securities of the
Relevant Company acquired pursuant to this Facility
or any other facility between the Relevant Company
and the UST (including any Warrants and underlying
Equity Interests acquired by the UST upon exercise
thereof) (the “Relevant Period”), the following
restrictions on executive privileges and compensation
shall apply to the “Relevant Company,” as defined on
Annex A:







	 	1.	 	The Relevant Company shall be subject to the
executive compensation and corporate governance requirements of Section
111(b) of the EESA and the UST’s guidelines that carry out the
provisions of such subsection for systemically significant failing
institutions as set forth in Notice 2008-PSSFI;
	 
	 	2.	 	The Relevant Company and its respective SEOs
(as defined below) shall modify or terminate all benefit plans,
arrangements and agreements (including golden parachute agreements) to
the extent necessary to be in compliance with Section 111(b) of the
EESA and the guidelines set forth in Notice 2008-PSSFI;
	 
	 	3.	 	The Relevant Company shall comply in all
respects with the limits on annual executive compensation deductibles
imposed by Section 162(m)(5) of Internal Revenue Code of 1986, as
amended, as applicable;




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	 	4.	 	The Relevant Company shall not pay or accrue
any bonus or incentive compensation to the 25 most highly compensated
employees (including the SEOs) (collectively, the “Senior Employees”)
except as approved by the President’s Designee;
	 
	 	5.	 	The Relevant Company shall not adopt or
maintain any compensation plan that would encourage manipulation of
their reported earnings to enhance the compensation of any of its
employees; and
	 
	 	6.	 	The Relevant Company shall maintain all
suspensions and other restrictions of contributions to Benefit Plans
that are in place or initiated as of the Closing Date.





	 	 	 
	 

	 	At any time during the Relevant Period, the Lender shall have the right to
require the Relevant Company to claw back any bonuses or other compensation,
including golden parachutes, paid to any Senior Employees in violation of
any of the foregoing.
	 
	 	 
	 

	 	Within 120 days of the Closing Date, the principal executive officer (or
person acting in a similar capacity) of the Relevant Company shall certify
in writing, to the Lender’s Chief Compliance Officer that the Relevant
Company’s compensation committee has reviewed the compensation arrangements
of the SEOs with its senior risk officers and determined that the
compensation arrangements do not encourage the SEOs to take unnecessary and
excessive risks that threaten the value of the Relevant Company. The
Relevant Company shall preserve appropriate documentation and records to
substantiate such certification in an easily accessible place for a period
not less than three (3) years following the Maturity Date.
	 
	 	 
	 

	 	“President’s Designee” means one or more officers from the Executive Branch
designated by the President. “SEOs” means the Borrower’ “senior executive
officers” as defined in subsection 111(b)(3) of the EESA and regulations
issued thereunder, including the rules set forth in 31 C.F.R. Part 30, or as
otherwise may be defined by the UST. “Benefit Plan” means, collectively,
any compensation, bonus, incentive and other benefit plans (including
supplemental executive retirement plans), arrangements and agreements
(including golden parachute, severance and employment agreements).
	 
	 	 
	Asset Divestment:

	 	With respect to any private passenger aircraft or
interest in such aircraft that is owned or held by the
Borrower or any subsidiary immediately prior to the
Closing Date, such party shall demonstrate to the
satisfaction of the President’s Designee that it is
taking all reasonable steps to divest itself of such
aircraft or interest. Further, the Borrower shall not
acquire or lease any such aircraft or interest in such
aircraft.






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	Material 

Transactions:

	 	

The Borrower shall provide prompt notice to the
President’s Designee of any asset sale, investment,
contract, commitment, or other transaction not in the
ordinary course of business proposed to be entered into
with a value in excess of $100 million (a “Material
Transaction”). The President’s Designee shall have the
right to review and prohibit any such Material
Transaction if the President’s Designee determines that
it would be inconsistent with or detrimental to the
long-term viability of the Borrower.
	 
	 	 
	Restrictions on 

Expenses:

	 	

During the Relevant Period, the Company shall maintain
and implement its comprehensive written policy on
corporate expenses (“Expense Policy”) and distribute the
Expense Policy to all employees of the Company and its
subsidiaries covered under the policy. Any material
amendments to the Expense Policy shall require the prior
written consent of the President’s Designee, and any
material deviations from the Expense Policy, whether in
contravention thereof or pursuant to waivers provided
for thereunder, shall promptly be reported to the the
President’s Designee.
	 
	 	 
	 

	 	The Expense Policy shall, at a minimum: (i) require compliance with all
applicable law, (ii) apply to the Company and all of its subsidiaries, (iii)
govern (a) the hosting, sponsorship or other payment for conferences and
events, (b) travel accommodations and expenditures, (c) consulting
arrangements with outside service providers, (d) any new lease or
acquisition of real estate, (e) expenses relating to office or facility
renovations or relocations, and (f) expenses relating to entertainment or
holiday parties; and (iv) provide for (a) internal reporting and oversight,
and (b) mechanisms for addressing non-compliance with the policy.
	 
	 	 
	Reporting 

Requirements:

	 	
The Borrower shall deliver to Lender, consistent with
Borrower’s obligations to provide such information pursuant
to the terms of other loan agreements, some or all of the
following periodic reports and certifications:







	 	1.	 	Weekly status report, commencing with the week
of December 29, 2008, detailing the 13-week rolling cash forecast for
the Company and its subsidiaries (on a consolidated and consolidating
basis);
	 
	 	2.	 	Bi-weekly liquidity status report, commencing
with the second week following the Closing Date, detailing, with
respect to the Company and its subsidiaries (on a consolidated and
consolidating basis): (i) the current liquidity profile; (ii) expected
liquidity needs; (iii) any material changes in their business since the
date of the last status report; (iv) any transfer, sale, pledge or
other disposition of any material asset since the date of the last
status report; and (v) any changes to their capital structure.




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	 	3.	 	Monthly certification that (i) the Expense
Policy conforms to the requirements set forth herein; (ii) the Company
and its subsidiaries are in compliance with the Expense Policy; and
(iii) there have been no material amendments thereto or deviations
therefrom other than those that have been disclosed to and approved by
Lender.
	 
	 	4.	 	Monthly certification that all Benefit Plans
with respect to SEOs and Senior Employees are in compliance with
Section 111(b) of the EESA and the executive compensation terms
specified in the final lending agreement; and
	 
	 	5.	 	Certified copies of all publicly filed
financial reports and auditors opinions.





	 	 	 
	Access to Information
And Right to Audit:

	 	

At all times while the Facility is in effect, the
Borrower and each of its direct and indirect
subsidiaries shall permit the Lender and its agents,
consultants, contractors and advisors, and the
Special Inspector General of the Troubled Assets
Relief Program, access to personnel and any books,
papers, records or other data that may be relevant
to the financial assistance being provided through
the Facility, including compliance with the
financing terms and conditions.
	 
	 	 
	Representations 

And Warranties:

	 	

In addition, with respect to Warrants to be issued
to the UST , the Borrower will represent and warrant
to the UST that, as of the date of this Indicative
Summary of Terms and each date any Warrants are
delivered, (i) the Warrants have been duly
authorized and constitute a valid and legally
binding obligation of the Company enforceable
against it in accordance with its terms; (ii) the
shares of common stock issuable upon exercise of the
Warrants (the “Warrant Shares”) have been duly
authorized and reserved for issuance upon exercise
of the Warrants, and when so issued in accordance
with the terms of the Warrants will be validly
issued, fully paid, and non-assessable; (iii)
Borrower has the corporate power to enter into this
Facility, to execute and deliver the related
Facility documentation and the Warrants and to carry
out its obligations hereunder and thereunder; (iv)
the execution, delivery, and performance by the
Borrower of the Facility documents and the Warrants,
and the consummation of the transactions
contemplated hereby and thereby, have been duly
authorized by all necessary corporate action on
their respective parts, and no further approval or
authorization is required on their respective parts;
(v) each Facility document, when executed and
delivered by the Borrower and Lender, is a valid,
binding and enforceable obligation of the Borrower.






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	Conditions Precedent
to Closing:

	 	

Closing of the Facility and the funding of the
Advance will be subject to, the satisfaction of
customary conditions precedent, including but not
limited to:







	 	1.	 	Execution of mutually satisfactory Facility
documentation and completion of all conditions to funding contained
therein;
	 
	 	2.	 	Receipt of customary legal opinions from
in-house, domestic and local counsel to the Borrower acceptable to
Lender including, but not limited to, security interest perfection, PTO
filings and analogous foreign law opinions, general corporate matters
and enforceability, and an Investment Company Act opinion;
	 
	 	3.	 	Receipt of officer’s certificates and standard
closing documents and certificates with respect to the Borrower, each
in a form acceptable to Lender;
	 
	 	4.	 	The Lender’s interests in the Collateral shall
be perfected in accordance with applicable law (except to the extent
the interests will be perfected on a post-closing basis, as may be
agreed to by the Lender) and all necessary waivers, amendments,
approvals and consents to the pledge of such Collateral shall have been
obtained;
	 
	 	5.	 	With respect to Collateral on which Lender will
have a first priority lien, evidence that all then-existing liens
thereon have been released or will be released simultaneously with the
funding of the Advance;
	 
	 	6.	 	With respect to Collateral on which Lender will
have a lien of junior priority, if any, an intercreditor agreement duly
executed by the other lienholders, in form and substance acceptable to
Lender in its sole discretion;
	 
	 	7.	 	With respect to any equity investments that
constitute Collateral, receipt of approvals duly executed by the
Borrower’s applicable creditors consenting to the pledge of such equity
investments, to the extent required;
	 
	 	8.	 	With respect to any real property that
constitutes Collateral, receipt of an environmental indemnity from the
Borrower;
	 
	 	9.	 	A waiver shall have been duly executed by the
Borrower and each SEO and delivered to the UST releasing the UST from
any claims that the Borrower and/or the SEOs may otherwise have as a
result of any modification of the terms of any benefit plans,
arrangements and agreements to eliminate any provisions that would not
be in compliance with the executive compensation and corporate
governance requirements of Section 111 of the EESA and the guidelines
set forth in Notice 2008-PSSFI;
	 
	 	11.	 	A waiver shall have been duly executed by each
SEO and delivered to the Borrower (with a copy to the UST) releasing
the




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	 	 	 	Borrower from any claims the SEOs may otherwise have as a result of
any modification of the terms of any benefit plans, arrangements and
agreements to eliminate any provisions that would not be in
compliance with the executive compensation and corporate governance
requirements of Section 111 of the EESA and the guidelines set forth
in Notice 2008-PSSFI;
	 
	 	12.	 	A waiver shall have been duly executed by the
Borrower and each Senior Employee and delivered to the UST releasing
the UST from any claims that the Borrower and such Senior Employees may
otherwise have as a result of the Borrower’s failure to pay or accrue
any bonus or incentive compensation as a result of the foregoing;
	 
	 	13.	 	A waiver shall have been duly executed by each
Senior Employee and delivered to the Borrower (with a copy to the UST)
releasing the Loan Parties from any claims that the SEOs may otherwise
have as a result of the Borrower’s failure to pay or accrue any bonus
or incentive compensation as a result of the foregoing;
	 
	 	14.	 	No material pending or threatened litigation
not otherwise disclosed to and approved by Lender;
	 
	 	15.	 	Payment of all fees and expenses due at the
Closing Date;
	 
	 	16.	 	Satisfaction of the additional conditions
precedent set forth on Appendix A; and
	 
	 	17.	 	Delivery or performance (to the satisfaction of
the Lender) of all other conditions to closing and due diligence items
that may be requested by the Lender.





	 	 	 
	Conditions Precedent
to the Advance:

	 	

The obligation of Lender to make the Advance will be
subject to the satisfaction of the following
conditions precedent:







	 	1.	 	No unmatured Event of Default or Event of
Default shall have occurred and be continuing; and
	 
	 	2.	 	Other customary conditions precedent.





	 	 	 
	Covenants

	 	Unless waived by Lender, the Borrower shall be subject
to customary covenants for this type of transaction
(with certain exceptions to be mutually agreed).
	 
	 	 
	Events of Default:

	 	Will include, consistent with events of default set
forth in the $13.4 billion loan agreement to which the
Borrower and the Lender will become parties, but not be
limited to each of the following events:







	 	1.	 	Breach of representations, warranties or
covenants or other terms and conditions of the Facility;
	 
	 	2.	 	Default on any payment obligation under the
Facility;
	 
	 	3.	 	Bankruptcy/insolvency of the Borrower;




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	 	4.	 	Change in control of the Borrower;
	 
	 	5.	 	The Borrower’s or default under any other debt
or prepayment obligations the outstanding principal balance of which
equals or exceeds $100 million;
	 
	 	6.	 	Lender ceases to have a perfected first
priority security interest or ownership interest in any material
portion of the Collateral;
	 
	 	7.	 	Cross default to any other facility or
arrangement between the Borrower or any of its affiliates and Lender.





	 	 	 
	 

	 	Upon the occurrence of any of the foregoing, Lender shall have the option to
make demand, at which time the Facility will terminate and all amounts owing
with respect to the Facility will be immediately exchanged for the GMAC
Equity in full and complete satisfaction of the Borrower’s obligations under
the Facility. Lender shall be entitled to any and all remedies pursuant to
the Facility documents and applicable law, each of which shall be cumulative
and in addition to every other remedy available to the Lender.
	 
	 	 
	DIP Loan 

Conversion:

	 	

Upon the filing of a voluntary or involuntary
bankruptcy petition by or in respect of the Borrower,
Lender shall have the exclusive right, exercisable at
its option, to convert this Facility into a
debtor-in-possession facility in form and substance
acceptable to Lender.
	 
	 	 
	Warrant:

	 	The UST will receive warrants to purchase common shares
of the Company as set forth in the Indicative Summary
of Terms for Secured Term Loan Facility dated December
19, 2008.
	 
	 	 
	Fees and Expenses:

	 	The Borrower shall be responsible for any and all
reasonable legal fees, reasonable due diligence and
other reasonable out-of-pocket expenses incurred by or
on behalf of the Lender in connection with this
Facility, whether or not the Facility closes or funds.
	 
	 	 
	Governing Law:

	 	Applicable Federal law (including conflicts of law
rules), and in the absence of applicable Federal law,
the law of the State of New York, without regard to
conflict of laws doctrine applied in such state (other
than Section 5-1401 of the New York General Obligations
Law).







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Appendix A to Secured Term Loan Facility

GM




Additional Terms




	 	 	 
	Company/Borrower:

	 	General Motors Corporation.
	 
	 	 
	Expected Closing
and Advance Date:

	 	Expected date for closing and funding: On or about January 16, 2009.
	 
	 	 
	Loan Amount:

	 	Up to $1 billion, to be made available to Borrower, upon request
(subject to the Loan Parties’ satisfaction of the other terms and
conditions of the Facility), on or after the closing date of the
GMAC Rights Offering.
	 
	 	 
	Use of Funds:

	 	The funds advanced may be used by the Borrower to purchase, through
the applicable subsidiaries, $1 billion Class B Membership
Interests of GMAC LLC (the “Purchased Interests”) pursuant to an
offering of $1 .25 billion Common Membership Interests of GMAC LLC
to the existing Common Holders (the “GMAC Rights Offering”).
Capitalized terms used in this section and not otherwise defined
herein shall have the respective meanings set forth in the GMAC LLC
Operating Agreement.
	 
	 	 
	 

	 	The funds advanced may be used by the Borrower to purchase, through
the applicable subsidiaries, $1 billion Class B Membership
Interests of GMAC LLC (the “Purchased Interests”) pursuant to an
offering of $1 .25 billion Common Membership Interests of GMAC LLC
to the existing Common Holders (the “GMAC Rights Offering”).
Capitalized terms used in this section and not otherwise defined
herein shall have the respective meanings set forth in the GMAC LLC
Operating Agreement.
	 
	 	 
	 

	 	The funds advanced may be used by the Borrower to purchase, through
the applicable subsidiaries, $1 billion Class B Membership
Interests of GMAC LLC (the “Purchased Interests”) pursuant to an
offering of $1.25 billion Common Membership Interests of GMAC LLC
to the existing Common Holders (the “GMAC Rights Offering”).
Capitalized terms used in this section and not otherwise defined
herein shall have the respective meanings set forth in the GMAC LLC
Operating Agreement.
	 
	 	 
	 

	 	The funds advanced may be used by the Borrower to purchase, through
the applicable subsidiaries, $1 billion Class B Membership
Interests of GMAC LLC (the “Purchased Interests”) pursuant to an
offering of $1.25 billion Common Membership Interests of GMAC LLC
to the existing Common Holders (the “GMAC Rights Offering”).
Capitalized terms used in this section and not otherwise defined
herein shall have the respective meanings set forth in the GMAC LLC
Operating Agreement.
	 
	 	 
	 

	 	The funds advanced shall be used by the Borrower to purchase up to
$1 billion of Class B Membership Interests of GMAC LLC (the







 









 






	 	 	 
	 

	 	“Purchased Interests”) pursuant to an offering of approximately
$1.25 billion Common Membership Interests of GMAC LLC to the
existing Common Holders (the “GMAC Rights Offering”). Capitalized
terms used in this section and not otherwise defined herein shall
have the respective meanings set forth in the GMAC LLC Operating
Agreement.
	 
	 	 
	Expiration Date:

	 	January 16, 2012 at 5:00 pm Washington, DC time.
	 
	 	 
	Payment Date:

	 	The last business day of each calendar quarter, commencing with the
first calendar quarter in 2009.
	 
	 	 
	LIBOR Floor:

	 	 2.00%.
	 
	 	 
	Spread Amount:

	 	300 basis points; provided that upon the occurrence and during the
continuance of an Event of Default, the Spread Amount shall be
equal to 800 basis points.
	 
	 	 
	Financial Covenants:

	 	Minimum liquidity and maximum leverage covenants to be determined
by the President’s Designee.
	 
	 	 
	Additional
Conditions
Precedent to
Closing:

	 	(1) The Common Holders of the Class A Membership Interests of GMAC
LLC and holders of the Class C Membership Interests of GMAC LLC
shall have consented in writing to the pledge to Lender of the
Class B Membership Interests under this Facility.
	 
	 	 
	 

	 	(2) Cerberus ResCap Financing, LLC (or its applicable affiliate)
and the Borrower shall each have converted 100% of their respective
participation interests in GMAC LLC’s senior secured credit
facility with Residential Funding Company, LLC and GMAC Mortgage,
LLC, dated June 4, 2008, to Common Membership Interests.
	 
	 	 
	Additional
Condition Precedent
to Making the Loan:

	 	Each Common Holder of Common Membership Interests of GMAC LLC shall
have waived its preemptive rights under Section 12.3 of the GMAC
LLC Operating Agreement.
	 
	 	 
	Collateral:

	 	The Borrower shall and shall cause its affiliates to grant to
Lender first-priority liens the GMAC Equity issued to them in the
GMAC Rights Offering, together with certain other GMAC equity now
owned by the Borrower, and such other collateral as may be
requested by the Lender and provided by the Borrower from time to
time.
	 
	 	 
	Relevant Company:

	 	General Motors Corporation.