Document:

exv10w2

EXHIBIT 10.2

FORM OF ISSUER WARRANT TRANSACTION

Opening Transaction

	 	 	 
	To:

	 	BorgWarner Inc.
	 

	 	3850 Hamlin Road
	 

	 	Auburn Hills, MI 48326
	 
	 	 
	From:

	 	Bank of America, N.A.
	 

	 	c/o Banc of America Securities LLC
	 

	 	Bank of America Tower at One Bryant Park
	 

	 	New York, NY 10036
	 
	 	 
	Re:

	 	Issuer Warrant Transaction
	 
	 	 
	Ref. No:

	 	NY-38451
	 
	 	 
	Date:

	 	April 6, 2009

Dear Sir(s):

     The purpose of this communication (this “Confirmation”) is to set forth the terms and
conditions of the above-referenced transaction entered into on the Trade Date specified below (the
“Transaction”) between Bank of America, N.A. (“Dealer”) and BorgWarner Inc. (“Issuer”).
This communication constitutes a “Confirmation” as referred to in the ISDA Master Agreement
specified below.

     This Confirmation is subject to, and incorporates, the definitions and provisions of the 2006
ISDA Definitions (the “2006 Definitions”) and the definitions and provisions of the 2002
ISDA Equity Derivatives Definitions (the “Equity Definitions”, and together with the 2006
Definitions, the “Definitions”), in each case as published by the International Swaps and
Derivatives Association, Inc. (“ISDA”). In the event of any inconsistency between the 2006
Definitions and the Equity Definitions, the Equity Definitions will govern. For purposes of the
Equity Definitions, each reference herein to a Warrant shall be deemed to be a reference to a Call
Option or an Option, as context requires.

     Each party is hereby advised, and each such party acknowledges, that the other party has
engaged in, or refrained from engaging in, substantial financial transactions and has taken other
material actions in reliance upon the parties’ entry into the Transaction to which this
Confirmation relates on the terms and conditions set forth below.

     This Confirmation evidences a complete and binding agreement between Dealer and Issuer as to
the terms of the Transaction to which this Confirmation relates. This Confirmation shall be
subject to an agreement (the “Agreement”) in the form of the 1992 ISDA Master Agreement
(Multicurrency—Cross Border) as if Dealer and Issuer had executed an agreement in such form on the
date hereof (but without any Schedule except for (i) the election of Loss and Second Method and US
Dollars (“USD”) as the Termination Currency, (ii) the replacement of the word “third” in the last
line of Section 5(a)(i) of the Agreement with the word “second,” (iii) the election that the “Cross
Default” provisions of Section 5(a)(vi) of the Agreement shall apply to Issuer with a “Threshold
Amount” of USD25 million and (iv) such other elections as set forth in this Confirmation.

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     All provisions contained in, or incorporated by reference to, the Agreement will govern this
Confirmation except as expressly modified herein. In the event of any inconsistency between this
Confirmation and either the Definitions or the Agreement, this Confirmation shall govern.

     The Transaction hereunder shall be the sole Transaction under the Agreement. If there exists
any ISDA Master Agreement between Dealer and Issuer or any confirmation or other agreement between
Dealer and Issuer pursuant to which an ISDA Master Agreement is deemed to exist between Dealer and
Issuer, then notwithstanding anything to the contrary in such ISDA Master Agreement, such
confirmation or agreement or any other agreement to which Dealer and Issuer are parties, the
Transaction shall not be considered a Transaction under, or otherwise governed by, such existing or
deemed ISDA Master Agreement.

     The Transaction is a Warrant Transaction, which shall be considered a Share Option Transaction
for purposes of the Equity Definitions. The terms of the particular Transaction to which this
Confirmation relates are as follows:

	 	 	 
	General Terms:
	 	 
	 
	 	 
	  Trade Date:

	 	April 6, 2009
	 
	 	 
	  Effective Date:

	 	April 9, 2009, or such other date as agreed between the parties, subject to
Section 8(k) below.
	 
	 	 
	  Components:

	 	The Transaction will be divided into individual Components, each with the terms
set forth in this Confirmation, and, in particular, with the Number of Warrants and
Expiration Date set forth in this Confirmation. The payments and deliveries to be
made upon settlement of the Transaction will be determined separately for each
Component as if each Component were a separate Transaction under the Agreement.
	 
	 	 
	  Warrant Style:

	 	European
	 
	 	 
	  Warrant Type:

	 	Call
	 
	 	 
	  Seller:

	 	Issuer
	 
	 	 
	  Buyer:

	 	Dealer
	 
	 	 
	  Shares:

	 	The Common Stock of Issuer, par value USD0.01 per share (Ticker Symbol: “BWA”).
	 
	 	 
	  Number of Warrants:

	 	For each Component, as provided in Annex A to this Confirmation.
	 
	 	 
	  Warrant Entitlement:

	 	One Share per Warrant
	 
	 	 
	  Strike Price:

	 	USD38.61
	 
	 	 
	  Premium:

	 	USD13,585,001
	 
	 	 
	  Premium Payment Date:

	 	The Effective Date
	 
	 	 
	  Exchange:

	 	New York Stock Exchange
	 
	 	 
	  Related Exchange:

	 	All Exchanges located in the United States.
	 
	 	 
	Procedures for Exercise:
	 	 
	 
	 	 
	 In respect of any Component:
	 	 
	 
	 	 
	  Expiration Time:

	 	Valuation Time

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	  Expiration Date:

	 	As provided in Annex A to this Confirmation (or, if such date is
not a Scheduled Trading Day, the next following Scheduled Trading Day that is not
already an Expiration Date for another Component); provided that if that date is a
Disrupted Day, the Expiration Date for such Component shall be the first succeeding
Scheduled Trading Day that is not a Disrupted Day and is not or is not deemed to be an
Expiration Date in respect of any other Component of the Transaction hereunder; and
provided further that if the Expiration Date has not occurred pursuant to the
preceding proviso as of the Final Disruption Date, the Calculation Agent shall have
the right to elect, in its reasonable discretion, that the Final Disruption Date shall
be the Expiration Date (irrespective of whether such date is an Expiration Date in
respect of any other Component for the Transaction). “Final Disruption Date” means
October 19, 2012. Notwithstanding the foregoing and anything to the contrary in the
Equity Definitions, if a Market Disruption Event occurs on any Expiration Date, the
Calculation Agent may reasonably determine that such Expiration Date is a Disrupted
Day only in part, in which case the Calculation Agent shall make adjustments to the
Number of Warrants for the relevant Component for which such day shall be the
Expiration Date and shall designate the Scheduled Trading Day determined in the manner
described in the immediately preceding sentence as the Expiration Date for the
remaining Warrants for such Component and shall determine the VWAP Price based on
transactions in the Shares effected before the relevant Market Disruption Event
occurred and/or after the relevant Market Disruption Event ended. Section 6.6 of the
Equity Definitions shall not apply to any Valuation Date occurring on an Expiration
Date.
	 
	 	 
	  Market Disruption Event:

	 	Section 6.3(a) of the Equity Definitions is hereby amended by
deleting the words “during the one hour period that ends at the relevant Valuation
Time, Latest Exercise Time, Knock-in Valuation Time or Knock-out Valuation Time, as
the case may be,” in clause (ii) thereof.
	 
	 	 
	 

	 	Section 6.3(d) of the Equity Definitions is hereby
amended by deleting the remainder of the
provision following the term “Scheduled
Closing Time” in the fourth line thereof.
Any Scheduled Trading Day on which the
Exchange is scheduled to close prior to its
normal close of trading shall be deemed to be
a Disrupted Day in full.
	 
	 	 
	  Automatic Exercise:

	 	Applicable; and means that the Number of Warrants for the corresponding
Expiration Date will be deemed to be automatically exercised at the Expiration Time on
such Expiration Date unless Dealer notifies Seller (by telephone or in writing) prior
to the Expiration

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	 	 Time on such Expiration Date that it does not wish Automatic
Exercise to occur, in which case Automatic Exercise will not apply to such Expiration
Date.
	 
	 	 
	  Issuer’s Telephone Number
and 

  Telex and/or Facsimile Number 

  and Contact Details for purpose 

  of
Giving Notice:
	 	 
	 

	 	To: BorgWarner Inc.
	 

	 	Attn: Anthony D. Hensel,
         
Vice President and Treasurer
	 

	 	Telephone: 248-754-0861
	 

	 	Facsimile: 248-754-9069
	 
	 	 
	Settlement Terms:
	 	 
	 
	 	 
	 In respect of any Component:
	 	 
	 
	 	 
	  Settlement Currency:

	 	USD
	 
	 	 
	  Net Share Settlement:

	 	On each Settlement Date, Issuer shall deliver to Dealer a
number of Shares equal to the Number of Shares to be Delivered for such Settlement
Date to the account specified by Dealer and cash in lieu of any fractional Share
valued at the VWAP Price on the Valuation Date corresponding to such Settlement Date.
If, in the reasonable judgment of Issuer or Dealer, based on advice of counsel, for
any reason, the Shares deliverable upon Net Share Settlement would not be immediately
freely transferable by Dealer under Rule 144 under the Securities Act of 1933, as
amended (the “Securities Act”), then Dealer may elect to either (x) accept delivery of
such Shares notwithstanding any restriction on transfer or (y) have the provisions set
forth in Section 8(b) below apply.
	 
	 	 
	 

	 	The Number of Shares to be Delivered shall be
delivered by Issuer to Dealer no later than 12:00
noon (local time in New York City) on the
relevant Settlement Date.
	 
	 	 
	  Number of Shares to be 

  Delivered:

	 	In respect of any Exercise Date, subject to the last
sentence of Section 9.5 of the Equity Definitions, the product of (i) the number of
Warrants exercised or deemed exercised on such Exercise Date, (ii) the Warrant
Entitlement and (iii) (A) the excess of the VWAP Price on the Valuation Date occurring
on such Exercise Date over the Strike Price (or, if there is no such excess, zero)
divided by (B) such VWAP Price.
	 
	 	 
	  VWAP Price:

	 	For any Exchange Business Day, as reasonably determined by the
Calculation Agent based on the New York Stock Exchange Volume Weighted Average Price
per Share for the regular trading session (including any extensions thereof) of the
Exchange on such Exchange Business Day (without

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	 	regard to pre-open or after hours
trading outside of such regular trading session), as published by Bloomberg at 4:15
P.M., New York City time (or 15 minutes following the end of any extension of the
regular trading session), on such Exchange Business Day, on Bloomberg page “BWA.N
<Equity> AQR” (or any successor thereto) (or if such published volume weighted
average price is unavailable or is manifestly incorrect, the market value of one Share
on such Exchange Business Day, as reasonably determined by the Calculation Agent using
a volume weighted method).
	 
	 	 
	  Other Applicable Provisions:

	 	The provisions of Sections 9.1(c), 9.8, 9.9, 9.10,
9.11 and 9.12 of the Equity Definitions will be applicable as if “Physical Settlement”
applied to the Transaction; provided that the Representation and Agreement contained
in Section 9.11 of the Equity Definitions shall be modified by excluding any
representations therein relating to restrictions, obligations, limitations or
requirements under applicable securities laws that exist as a result of the fact that
Issuer is the issuer of the Shares.
	 
	 	 
	Adjustments:
	 	 
	 
	 	 
	 In respect of any Component:
	 	 
	 
	 	 
	  Method of Adjustment:

	 	Calculation Agent Adjustment; provided that the parties agree that
open market Share repurchases at prevailing market prices or accelerated share
repurchases, forward contracts or similar transactions on customary terms (including
without limitation any discount to average VWAP prices) shall not be considered
Potential Adjustment Events. For the avoidance of doubt, Calculation Agent Adjustment
shall continue to apply until the obligations of the parties (including any
obligations of Issuer pursuant to Section 8(e) below) under the Transaction have been
satisfied in full.
	 
	 	 
	Extraordinary Events:
	 	 
	 
	 	 
	  New Shares:

	 	In the definition of New Shares in Section 12.1(i) of the Equity
Definitions, the text in clause (i) shall be deleted in its entirety and replaced with
“publicly quoted, traded or listed on any of the New York Stock Exchange, The NASDAQ
Global Market or The NASDAQ Global Select Market (or their respective successors)”.

	 	 	 
	  Consequences of Merger Events:
	 	 
	 
	 	 
	    (a) Share-for-Share:

	 	Modified Calculation Agent Adjustment
	 
	 	 
	    (b) Share-for-Other:

	 	Cancellation and Payment (Calculation Agent
Determination)
	 
	 	 
	    (c) Share-for-Combined:

	 	Cancellation and Payment (Calculation Agent
Determination); provided that the Calculation Agent may elect Component Adjustment
for all or part of the Transaction.

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	  Tender Offer:

	 	Applicable; provided that for the purposes of Section 12.1(d) of the Equity
Definitions, references in the definition of Tender Offer to 10% shall be replaced
with 20%.
	 
	 	 
	  Consequences of Tender Offers:
	 	 
	 
	 	 
	    (a) Share-for-Share:

	 	Modified Calculation Agent Adjustment
	 
	 	 
	    (b) Share-for-Other:

	 	Modified Calculation Agent Adjustment
	 
	 	 
	    (c) Share-for-Combined:

	 	Modified Calculation Agent Adjustment
	 
	 	 
	  Modified Calculation
	 	 
	 
	 	 
	  Agent Adjustment:

	 	Upon the occurrence of any Merger Event pursuant to which the
holders of Issuer’s Shares would be entitled to receive cash, securities or other
property for their Shares and for which Modified Calculation Agent Adjustment would
apply, if, as a result of such Merger Event, Issuer would be different from the issuer
of the Shares under this Confirmation, then, on or prior to the effective date of such
Merger Event, the Issuer and the issuer of the Shares under this Confirmation will
enter into a supplemental confirmation as a condition precedent to the adjustments
contemplated in Section 12.2(e)(i) of the Equity Definitions, with such supplemental
confirmation containing representations, warranties and agreements relating to
securities law and other issues as reasonably requested by Dealer that Dealer has
determined, in its reasonable discretion, to be reasonably necessary or appropriate to
allow Dealer to continue as a party to the Transaction, as adjusted under Section
12.2(e)(i) of the Equity Definitions, and to preserve its hedging or hedge unwind
activities in connection with the Transaction in a manner compliant with applicable
legal, regulatory or self-regulatory requirements, or with related policies and
procedures applicable to Dealer, and if such conditions are not met in all material
respects or if the Calculation Agent determines that no adjustment that it could make
under Section 12.2(e)(i) of the Equity Definitions will produce a commercially
reasonable result, then the consequences set forth in Section 12.2(e)(ii) of the
Equity Definitions shall apply.
	 
	 	 
	  Nationalization, Insolvency 

  or Delisting:

	 	Cancellation and Payment (Calculation Agent Determination);
provided that in addition to the provisions of Section 12.6(a)(iii) of the Equity
Definitions, it shall also constitute a Delisting if the Exchange is located in the
United States and the Shares are not immediately re-listed, re-traded or re-quoted on
any of the New York Stock Exchange, The

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	 	NASDAQ Global Select Market or The NASDAQ
Global Market (or their respective successors); if the Shares are immediately
re-listed, re-traded or re-quoted on any such exchange or quotation system, such
exchange or quotation system shall thereafter be deemed to be the Exchange.
	 
	 	 
	  Additional Disruption Events:
	 	 
	 
	 	 
	    (a) Change in Law:

	 	Applicable; provided that Section 12.9(a)(ii) of the
Equity Definitions is hereby amended by (i) replacing the phrase “the
interpretation” in the third line thereof with the phrase “or announcement or
statement of the formal or informal interpretation” and (ii) immediately following
the word “Transaction” in clause (X) thereof, adding the phrase “in the manner
contemplated by Hedging Party on the Trade Date.”
	 
	 	 
	    (b) Failure to Deliver:

	 	Not Applicable
	 
	 	 
	    (c) Insolvency Filing:

	 	Applicable
	 
	 	 
	    (d) Hedging Disruption:

	 	Applicable
	 
	 	 
	    (e) Increased Cost of Hedging:

	 	Applicable
	 
	 	 
	    (f) Loss of Stock Borrow:

	 	Applicable
	 
	 	 
	         Maximum Stock Loan Rate:

	 	2.00% per annum
	 
	 	 
	    (g) Increased Cost of Stock 

          Borrow:

	 	Applicable
	 
	 	 
	         Initial Stock Loan Rate:

	 	0.25% per annum
	 
	 	 
	  Hedging Party:

	 	Dealer for all applicable Additional Disruption Events.
	 
	 	 
	  Determining Party:

	 	Dealer for all applicable Additional Disruption Events.
	 
	 	 
	  Non-Reliance:

	 	Applicable
	 
	 	 
	  Agreements and 

  Acknowledgments
Regarding 

  Hedging Activities:

	 	Applicable
	 
	 	 
	  Additional Acknowledgments:

	 	Applicable

     Calculation Agent: Dealer. All determinations made by the Calculation Agent shall be
made in good faith and in a commercially reasonable manner. Following any calculation by the
Calculation Agent hereunder, upon a prior written request by Issuer, the Calculation Agent will
provide to Issuer by e-mail to the e-mail address provided by Issuer in such prior written request
a report (in a commonly used file format for the storage and manipulation of financial data)
displaying in reasonable detail the basis for such calculation, it being understood that the
Calculation Agent shall not be obligated to disclose any proprietary models used by it for such
calculation. No transferee of Dealer with respect to any Warrants in accordance with the terms of
this Confirmation shall act as Calculation Agent with respect to such transferred Warrants without
the prior consent of Issuer, such consent not to be unreasonably withheld or delayed.

     Account Details:

          Dealer Payment Instructions:

Bank of America

New York, NY

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SWIFT: BOFAUS65

Bank Routing: 026-009-593

Account Name: Bank of America

Account No.: 0012333-34172

          Account for delivery of Shares to Dealer:

To be provided by Dealer.

          Issuer Payment Instructions:

To be provided by Issuer.

     5. Offices:

          The Office of Dealer for the Transaction is:

Bank of America, N.A.

c/o Banc of America Securities LLC

Bank of America Tower at One Bryant Park

New York, NY 10036

          The Office of Issuer for the Transaction is:

Inapplicable. Issuer is not a Multibranch Party.

     6. Notices: For purposes of this Confirmation:

	 	(a)	 	Address for notices or communications to Issuer:

	 	 	 	 
	 	To:

	 	BorgWarner Inc.
	 	 

	 	3850 Hamlin Road

Auburn Hills, MI 48326
	 	Attn:

	 	Anthony D. Hensel,
	 	 

	 	Vice President and Treasurer
	 	Telephone:

	 	248-754-0861
	 	Facsimile:

	 	248-754-9069

	 	(b)	 	Address for notices or communications to Dealer:

	 	 	 	 
	 	To:

	 	Bank of America, N.A.
	 	 

	 	c/o Banc of America Securities LLC
	 	 

	 	Bank of America Tower at One Bryant Park
New York, NY 10036
	 	Attn:

	 	John Servidio
	 	Telephone:

	 	646-855-7127
	 	Facsimile:

	 	212-230-8610

     7. Representations, Warranties and Agreements:

     (a) In addition to the representations and warranties in the Agreement and those contained
elsewhere herein, Issuer represents and warrants to and for the benefit of, and agrees with, Dealer
as follows:

     (i) On the Trade Date, and as of the date of any election by Issuer of the Share
Termination Alternative under (and as defined in) Section 8(a) below, none of Issuer and
its executive officers and directors is aware of any material nonpublic information
regarding Issuer or the Shares. On the Trade Date, all reports and other documents filed
by Issuer with the Securities and Exchange Commission pursuant to the Securities Exchange
Act of 1934, as amended (the “Exchange Act”), when considered as a whole (with the more
recent such reports and documents

8

 

deemed to amend inconsistent statements contained in any
earlier such reports and documents), do not contain any untrue statement of a material fact
or any omission of a material fact required to be stated therein or necessary to make the
statements therein, in the light of the circumstances in which they were made, not
misleading.

     (ii) Without limiting the generality of Section 13.1 of the Equity Definitions, Issuer
acknowledges that neither Dealer nor any of its affiliates is making any representations or
warranties or taking a position or expressing any view with respect to the treatment of the
Transaction under any accounting standards, including FASB Statements 128, 133 (as
amended), 149 or 150, EITF Issue No. 00-19, 01-6, 03-6 or 07-5 (or any successor issue
statements) or under the FASB’s Liabilities & Equity Project.

     (iii) Prior to the Trade Date, Issuer shall deliver to Dealer a resolution of Issuer’s
board of directors authorizing the Transaction and such other certificate or certificates
as Dealer shall reasonably request.

     (iv) Issuer is not entering into this Confirmation to create actual or apparent
trading activity in the Shares (or any security convertible into or exchangeable for
Shares) or to raise or depress or otherwise manipulate the price of the Shares (or any
security convertible into or exchangeable for Shares) or otherwise in violation of the
Exchange Act.

     (v) Issuer is not, and after giving effect to the transactions contemplated hereby
will not be, required to register as an “investment company” as such term is defined in the
Investment Company Act of 1940, as amended.

     (vi) On the Trade Date and the Premium Payment Date (A) the assets of Issuer at their
fair valuation exceed the liabilities of Issuer, including contingent liabilities, (B) the
capital of Issuer is adequate to conduct the business of Issuer and (C) Issuer has the
ability to pay its debts and obligations as such debts mature and does not intend to, or
does not believe that it will, incur debt beyond its ability to pay as such debts mature.

     (vii) Issuer shall not take any action to decrease the number of Available Shares
below the Capped Number (each as defined below).

     (viii) Issuer understands no obligations of Dealer to it hereunder will be entitled to
the benefit of deposit insurance and that such obligations will not be guaranteed by any
governmental agency.

     (ix) (A) During the period starting on the first Expiration Date and ending on the
last Expiration Date (the “Settlement Period”), the Shares or securities that are
convertible into, or exchangeable or exercisable for Shares, are not, and shall not be,
subject to a “restricted period,” as such term is defined in Regulation M under the
Exchange Act (“Regulation M”) and (B) Issuer shall not engage in any “distribution,” as
such term is defined in Regulation M, other than a distribution meeting the requirements of
the exceptions set forth in sections 101(b)(10) and 102(b)(7) of Regulation M, until the
second Exchange Business Day immediately following the Settlement Period.

     (x) During the Settlement Period, neither Issuer nor any “affiliate” or “affiliated
purchaser” (each as defined in Rule 10b-18 of the Exchange Act (“Rule 10b-18”)) shall
directly or indirectly (including, without limitation, by means of any cash-settled or
other derivative instrument) purchase, offer to purchase, place any bid or limit order that
would effect a purchase of, or commence any tender offer relating to, any Shares (or an
equivalent interest, including a unit of beneficial interest in a trust or limited
partnership or a depository share) or any security convertible into or exchangeable or
exercisable for Shares, except through Dealer, other than purchases from its employees that
are not “Rule 10b-18 purchases” as defined in Rule 10b-18(a)(13).

9

 

     (xi) Issuer agrees that it (A) will not during the Settlement Period make, or permit
to be made, any public announcement (as defined in Rule 165(f) under the Securities Act) of
any Merger Transaction or potential Merger Transaction unless such public announcement is
made prior to the opening or after the close of the regular trading session on the Exchange
for the Shares; (B) shall promptly (but in any event prior to the next opening of the
regular trading session on the Exchange) notify Dealer following any such announcement that
such announcement has been made; and (C) shall promptly (but in any event prior to the next
opening of the regular trading session on the Exchange) provide Dealer with written notice
specifying (i) Issuer’s average daily Rule 10b-18 Purchases (as defined in Rule 10b-18)
during the three full calendar months immediately preceding the announcement date that were
not effected through Dealer or its affiliates and (ii) the number of Shares purchased
pursuant to the proviso in Rule 10b-18(b)(4) under the Exchange Act for the three full
calendar months preceding the announcement date. Such written notice shall be deemed to be
a certification by Issuer to Dealer that such information is true and correct. In
addition, Issuer shall promptly notify Dealer of the earlier to occur of the completion of
such transaction and the completion of the vote by target shareholders. “Merger
Transaction” means any merger, acquisition or similar transaction involving a
recapitalization as contemplated by Rule 10b-18(a)(13)(iv) under the Exchange Act.

     (xii) The Shares of Issuer initially issuable upon exercise of the Warrants have been
reserved for issuance by all required corporate action of the Issuer. Any Shares issued or
delivered in connection with the Transaction shall be duly authorized and validly issued,
fully paid and non-assessable, and the issuance or delivery thereof shall not be subject to
any preemptive or similar rights.

     (b) Each of Dealer and Issuer agrees and represents that it is an “eligible contract
participant” as defined in Section 1a(12) of the U.S. Commodity Exchange Act, as amended.

     (c) Each of Dealer and Issuer acknowledges that the offer and sale of the Transaction to it is
intended to be exempt from registration under the Securities Act, by virtue of Section 4(2)
thereof. Accordingly, Dealer represents and warrants to Issuer that (i) it has the financial
ability to bear the economic risk of its investment in the Transaction and is able to bear a total
loss of its investment and its investments in and liabilities in respect of the Transaction, which
it understands are not readily marketable, are not disproportionate to its net worth, and it is
able to bear any loss in connection with the Transaction, including the loss of its entire
investment in the Transaction, (ii) it is an “accredited investor” as that term is defined in
Regulation D as promulgated under the Securities Act, (iii) it is entering into the Transaction for
its own account without a view to the distribution or resale thereof, (iv) the assignment, transfer
or other disposition of the Transaction has not been and will not be registered under the
Securities Act and is restricted under this Confirmation, the Securities Act and state securities
laws, and (v) its financial condition is such that it has no need for liquidity with respect to its
investment in the Transaction and no need to dispose of any portion thereof to satisfy any existing
or contemplated undertaking or indebtedness and is capable of assessing the merits of and
understanding (on its own behalf or through independent professional advice), and understands and
accepts, the terms, conditions and risks of the Transaction.

     (d) Subject to Section 8(f): Each of Dealer and Issuer agrees and acknowledges that Dealer is
a “financial institution,” “swap participant” and “financial participant” within the meaning of
Sections 101(22), 101(53C) and 101(22A) of Title 11 of the United States Code (the “Bankruptcy
Code”). The parties hereto further agree and acknowledge (A) that this Confirmation is (i) a
“securities contract,” as such term is defined in Section 741(7) of the Bankruptcy Code, with
respect to which each payment and delivery hereunder or in connection herewith is a “termination
value,” “payment amount” or “other transfer obligation” within the meaning of Section 362 of the
Bankruptcy Code and a “settlement payment” within the meaning of Section 546 of the Bankruptcy
Code, and (ii) a “swap agreement,” as such term is defined in Section 101(53B) of the Bankruptcy
Code, with respect to which each payment and delivery hereunder or in connection herewith is a
“termination value,” “payment amount” or “other transfer obligation” within the meaning of Section
362 of the Bankruptcy Code and a “transfer” within the meaning of Section 546 of the Bankruptcy
Code, and (B) that Dealer is entitled to the protections afforded by, among other sections,
Sections 362(b)(6), 362(b)(17), 362(b)(27), 362(o), 546(e), 546(g), 546(j), 548(d)(2), 555, 560 and
561 of the Bankruptcy Code.

10

 

     (e) Issuer shall deliver to Dealer (i) an incumbency certificate, dated as of the Trade Date,
of Issuer in customary form and (ii) an opinion of counsel, dated as of the Trade Date and
reasonably acceptable to Dealer in form and substance, with respect to due incorporation, existence
and good standing of the Issuer in Delaware, its qualifications as a foreign corporation and good
standing in Michigan, the due authorization, execution and delivery of the Confirmation, and the
absence of conflict of the execution and delivery of the Confirmation with any material agreement
required to be filed as any exhibit to the Issuer’s Annual Report on Form 10-K and the Issuer’s
charter documents.

     (f) Each party acknowledges and agrees to be bound by the Conduct Rules of the National
Association of Securities Dealers, Inc. applicable to transactions in options, and further agrees
not to violate the position and exercise limits set forth therein.

     8. Other Provisions:

     (a) Alternative Calculations and Payment on Early Termination and on Certain Extraordinary
Events. If Issuer shall owe Dealer any amount pursuant to Section 12.2, 12.3, 12.6, 12.7 or 12.9
of the Equity Definitions (except in the event of a Tender Offer, Merger Event, Insolvency or
Nationalization, in each case, in which the consideration or proceeds to be paid to holders of
Shares consists solely of cash) or pursuant to Section 6(d)(ii) of the Agreement (except in the
event of an Event of Default in which Issuer is the Defaulting Party or a Termination Event in
which Issuer is the Affected Party that resulted from an event or events within Issuer’s control)
(a “Payment Obligation”), Issuer shall have the right, in its sole discretion, to satisfy any such
Payment Obligation by the Share Termination Alternative (as defined below) by giving irrevocable
telephonic notice to Dealer, confirmed in writing within one Scheduled Trading Day, between the
hours of 9:00 A.M. and 4:00 P.M., New York City time, on the Merger Date, Tender Offer Date,
Announcement Date, Early Termination Date or other date the Transaction is cancelled or terminated,
as applicable (“Notice of Share Termination”). Upon such Notice of Share Termination, the
following provisions shall apply on the Scheduled Trading Day immediately following the Merger
Date, the Tender Offer Date, Announcement Date, Early Termination Date or other date the
Transaction is cancelled or terminated, as applicable:

	 	 	 
	Share Termination Alternative:

	 	Applicable and means that Issuer shall
deliver to Dealer the Share Termination
Delivery Property on the date on which
the Payment Obligation would otherwise be
due pursuant to Section 12.2, 12.3, 12.6,
12.7 or 12.9 of the Equity Definitions or
Section 6(d)(ii) of the Agreement, as
applicable (the “Share Termination
Payment Date”), in satisfaction of the
Payment Obligation.
	 
	 	 
	Share Termination 
Delivery
Property:

	 	A number of Share Termination Delivery
Units, as calculated by the Calculation
Agent, equal to the Payment Obligation
divided by the Share Termination Unit
Price. The Calculation Agent shall
adjust the Share Termination Delivery
Property by replacing any fractional
portion of the aggregate amount of a
security therein with an amount of cash
equal to the value of such fractional
security based on the values used to
calculate the Share Termination Unit
Price.
	 
	 	 
	Share Termination Unit Price:

	 	The value of property contained in one
Share Termination Delivery Unit, as
determined by the Calculation Agent in
its discretion by commercially reasonable
means and notified by the Calculation
Agent to Issuer at the time of
notification of the Payment Obligation.
	 
	 	 
	Share Termination Delivery Unit:

	 	In the case of a Termination Event, Event
of Default, Delisting or Additional
Disruption Event, one Share or, in the
case of an Insolvency, Nationalization,
Merger Event or Tender Offer, a Share or
a unit consisting of the number or amount
of each type of property received by a
holder of one Share (without
consideration of any requirement to pay
cash or other consideration in lieu of
fractional amounts of any securities) in
such Insolvency, Nationalization, Merger
Event or Tender Offer. If such
Insolvency, Nationalization, Merger

11

 

	 	 	 
	 

	 	Event
or Tender Offer involves a choice of
consideration to be received by holders,
such holder shall be deemed to have
elected to receive the maximum possible
amount of cash.
	 
	 	 
	Failure to Deliver:

	 	Applicable
	 
	 	 
	Other Applicable Provisions:

	 	If Share Termination Alternative is
applicable, the provisions of Sections
9.8, 9.9, 9.10, 9.11 and 9.12 of the
Equity Definitions will be applicable as
if “Physical Settlement” applied to the
Transaction, except that all references
to “Shares” shall be read as references
to “Share Termination Delivery Units”;
provided that the Representation and
Agreement contained in Section 9.11 of
the Equity Definitions shall be modified
by excluding any representations therein
relating to restrictions, obligations,
limitations or requirements under
applicable securities laws as a result of
the fact that Issuer is the issuer of any
Share Termination Delivery Units (or any
security forming a part thereof). If, in
the reasonable judgment of Issuer or
Dealer, based on advice of counsel, for
any reason, any securities comprising the
Share Termination Delivery Units
deliverable pursuant to this Section 8(a)
would not be immediately freely
transferable by Dealer under Rule 144
under the Securities Act, then Dealer may
elect to either (x) permit delivery of
such securities notwithstanding any
restriction on transfer or (y) have the
provisions set forth in Section 8(b)
below apply.

     (b) Registration/Private Placement Procedures. (i) With respect to the Transaction, the
following provisions shall apply to the extent provided for above opposite the caption “Net Share
Settlement” in Section 2 or in paragraph (a) of this Section 8. If so applicable, then, at the
election of Issuer by notice to Dealer within one Exchange Business Day after the relevant delivery
obligation arises, but in any event at least one Exchange Business Day prior to the date on which
such delivery obligation is due, either (A) all Shares or Share Termination Delivery Units, as the
case may be, delivered by Issuer to Dealer shall be covered by an effective registration statement
of Issuer for immediate resale by Dealer (such registration statement and the corresponding
prospectus (the “Prospectus”) (including, without limitation, any sections describing the plan of
distribution) in form and content commercially reasonably satisfactory to Dealer) or (B) Issuer
shall deliver additional Shares or Share Termination Delivery Units, as the case may be, so that
the value of such Shares or Share Termination Delivery Units, as determined by the Calculation
Agent to reflect an appropriate commercially reasonable liquidity discount, equals the value of the
number of Shares or Share Termination Delivery Units that would otherwise be deliverable if such
Shares or Share Termination Delivery Units were freely tradeable (without prospectus delivery) upon
receipt by Dealer (such value, the “Freely Tradeable Value”); provided that, if requested by
Dealer, Issuer shall make the election described in this clause (B) with respect to Shares
delivered on all Settlement Dates no later than one Exchange Business Day prior to the first
Exercise Date, and the applicable procedures described below shall apply to all Shares delivered on
the Settlement Dates on an aggregate basis. (For the avoidance of doubt, as used in this paragraph
(b) only, the term “Issuer” shall mean the issuer of the relevant securities, as the context shall
require.)

     (ii) If Issuer makes the election described in clause (b)(i)(A) above:

     (A) Dealer (or an affiliate of Dealer designated by Dealer) shall be afforded a
reasonable opportunity to conduct a due diligence investigation with respect to Issuer that
is customary in scope for underwritten follow-on offerings of equity securities of
companies of comparable size, maturity and lines of business and that yields results that
are commercially reasonably satisfactory to Dealer or such affiliate, as the case may be,
in its discretion; and

     (B) Dealer (or an affiliate of Dealer designated by Dealer) and Issuer shall enter
into an agreement (a “Registration Agreement”) on commercially reasonable terms in
connection with the public resale of such Shares or Share Termination Delivery Units, as
the case may be, by Dealer or such affiliate substantially similar to underwriting
agreements customary for underwritten follow-on offerings of equity securities of companies
of comparable size, maturity and lines of business, in form and substance commercially
reasonably satisfactory to Dealer or

12

 

such affiliate and Issuer, which Registration
Agreement shall include, without limitation, provisions substantially similar to those
contained in such underwriting agreements relating to the indemnification of, and
contribution in connection with the liability of, Dealer and its affiliates and Issuer,
shall provide for the payment by Issuer of all registration expenses in connection with
such resale, including all registration costs and all fees and expenses of counsel for
Dealer, and shall provide for the delivery of accountants’ “comfort letters” to Dealer or
such affiliate with respect to the financial statements and certain financial information
contained in or incorporated by reference into the Prospectus as are customarily requested
in comfort letters covering follow-on offerings of equity securities of companies of
comparable size, maturity and lines of business.

     (iii) If Issuer makes the election described in clause (b)(i)(B) above:

     (A) Dealer (or an affiliate of Dealer designated by Dealer) and any potential
institutional purchaser of any such Shares or Share Termination Delivery Units, as the case
may be, from Dealer or such affiliate identified by Dealer shall be afforded a commercially
reasonable opportunity to conduct a due diligence investigation in compliance with
applicable law with respect to Issuer customary in scope for private placements of equity
securities of companies of comparable size, maturity and lines of business (including,
without limitation, the right to have made available to them for inspection all financial
and other records, pertinent corporate documents and other information reasonably requested
by them), subject to execution by such recipients of customary confidentiality agreements
reasonably acceptable to Issuer;

     (B) Dealer (or an affiliate of Dealer designated by Dealer) and Issuer shall enter
into an agreement (a “Private Placement Agreement”) on commercially reasonable terms in
connection with the private placement of such Shares or Share Termination Delivery Units,
as the case may be, by Issuer to Dealer or such affiliate and the private resale of such
shares by Dealer or such affiliate, substantially similar to private placement purchase
agreements customary for private placements of equity securities of companies of comparable
size, maturity and lines of business, in form and substance commercially reasonably
satisfactory to Dealer and Issuer, which Private Placement Agreement shall include, without
limitation, provisions substantially similar to those contained in such private placement
purchase agreements relating to the indemnification of, and contribution in connection with
the liability of, Dealer and its affiliates and Issuer, shall provide for the payment by
Issuer of all expenses in connection with such resale, including all fees and expenses of
counsel for Dealer, shall contain representations, warranties and agreements of Issuer
reasonably necessary or advisable to establish and maintain the availability of an
exemption from the registration requirements of the Securities Act for such resales, and
shall use commercially reasonable efforts to provide for the delivery of accountants’
“comfort letters” to Dealer or such affiliate with respect to the financial statements and
certain financial information contained in or incorporated by reference into the offering
memorandum prepared for the resale of such Shares as are customarily requested in comfort
letters covering private placements of equity securities of companies of comparable size,
maturity and lines of business;

     (C) Issuer agrees that any Shares or Share Termination Delivery Units so delivered to
Dealer, (i) may be transferred by and among Dealer and its affiliates, and Issuer shall
effect such transfer without any further action by Dealer and (ii) after the minimum
“holding period” within the meaning of Rule 144(d) under the Securities Act has elapsed
with respect to such Shares or any securities issued by Issuer comprising such Share
Termination Delivery Units, Issuer shall promptly remove, or cause the transfer agent for
such Shares or securities to remove, any legends referring to any such restrictions or
requirements from such Shares or securities upon delivery by Dealer (or such affiliate of
Dealer) to Issuer or such transfer agent of seller’s and broker’s representation letters
customarily delivered by Dealer in connection with resales of restricted securities
pursuant to Rule 144 under the Securities Act (if any), without any further requirement for
the delivery of any certificate, consent, agreement, opinion of counsel, notice or any
other document, any transfer tax stamps or payment of any other amount or any other action
by Dealer (or such affiliate of Dealer); and

     (D) Issuer shall not take, or cause to be taken, any action that would make
unavailable either the exemption pursuant to Section 4(2) of the Securities Act for the
sale by

13

 

Issuer to Dealer (or any affiliate designated by Dealer) of the Shares or Share
Termination Delivery Units, as the case may be, or the exemption pursuant to Section 4(1)
or Section 4(3) of the Securities Act for resales of the Shares or Share Termination
Delivery Units, as the case may be, by Dealer (or any such affiliate of Dealer).

     (c) Make-whole Shares. If Issuer makes the election described in clause (i)(B) of paragraph
(b) of this Section 8, then Dealer or its affiliates may sell (which sale shall be made in a
commercially reasonable manner) such Shares or Share Termination Delivery Units, as the case may
be, during a period (the “Resale Period”) commencing on the Exchange Business Day following
delivery of such Shares or Share Termination Delivery Units, as the case may be, and ending on the
Exchange Business Day on which Dealer or its affiliates completes the sale of all such Shares or
Share Termination Delivery Units, as the case may be, or a sufficient number of Shares or Share
Termination Delivery Units, as the case may be, so that the realized net proceeds of such sales
exceed the Freely Tradeable Value. If any of such delivered Shares or Share Termination Delivery
Units remain after such realized net proceeds exceed the Freely Tradeable Value, Dealer shall
return such remaining Shares or Share Termination Delivery Units to Issuer. If the Freely
Tradeable Value exceeds the realized net proceeds from such resale, Issuer shall transfer to Dealer
by the open of the regular trading session on the Exchange on the Exchange Trading Day immediately
following the last day of the Resale Period the amount of such excess (the “Additional Amount”) in
cash or in a number of additional Shares (“Make-whole Shares”) in an amount that, based on the VWAP
Price on the last day of the Resale Period (as if such day was the “Valuation Date” for purposes of
computing such VWAP Price), has a dollar value equal to the Additional Amount. The Resale Period
shall continue to enable the sale of the Make-whole Shares in the manner contemplated by this
Section 8(c). This provision shall be applied successively until the Additional Amount is equal to
zero, subject to Section 8(e).

     (d) Beneficial Ownership. Notwithstanding anything to the contrary in the Agreement or this
Confirmation, in no event shall Dealer be entitled to receive, or shall be deemed to receive, any
Shares if, immediately upon giving effect to such receipt of such Shares, (i) the “beneficial
ownership” (within the meaning of Section 13 of the Exchange Act and the rules promulgated
thereunder) of Shares by Dealer, any of its affiliates subject to aggregation with Dealer for
purposes of the “beneficial ownership” test under Section 13 of the Exchange Act and all persons
who may form a “group” (within the meaning of Rule 13d-5(b)(1) under the Exchange Act) with Dealer
with respect to “beneficial ownership” of any Shares (collectively, “Dealer Group”) would be equal
to or greater than 8.0% or more of the outstanding Shares or (ii) Dealer, Dealer Group or any
person whose ownership position would be aggregated with that of Dealer or Dealer Group (Dealer,
Dealer Group or any such person, a “Dealer Person”) under Section 203 of the Delaware General
Corporation Law (the “DGCL Takeover Statute”) or other federal, state or local regulations or
regulatory orders applicable to ownership of Shares (“Applicable Laws”), would own, beneficially
own, constructively own, control, hold the power to vote or otherwise meet a relevant definition of
ownership in excess of a number of Shares equal to (x) the number of Shares that would give rise to
reporting or registration obligations or other requirements (including obtaining prior approval by
a state or federal regulator) of a Dealer Person under Applicable Laws (including, without
limitation, “interested stockholder” or “acquiring person” status under the DGCL Takeover Statute)
and with respect to which such requirements have not been met or the relevant approval has not been
received minus (y) 1.0% of the number of Shares outstanding on the date of determination (either
such condition described in clause (i) or (ii), an “Excess Ownership Position”). If any delivery
owed to Dealer hereunder is not made, in whole or in part, as a result of this provision, Issuer’s
obligation to make such delivery shall not be extinguished and Issuer shall make such delivery as
promptly as practicable after, but in no event later than one Exchange Business Day after, Dealer
gives notice to Issuer that such delivery would not result in the existence of an Excess Ownership
Position.

     (e) Limitations on Settlement by Issuer. Notwithstanding anything herein or in the Agreement
to the contrary, in no event shall Issuer be required to deliver Shares in connection with the
Transaction in excess of the product of two, the aggregate Number of Warrants for all Components at
the time of delivery and the Warrant Entitlement at the time of delivery (such product, the “Capped
Number”); provided that, solely for purposes of determining the Capped Number, the Number of
Warrants for a Component

14

 

and the Warrant Entitlement at the time of delivery shall take into
account only adjustments made in accordance with the provisions of this Confirmation as a result of
any Potential Adjustment Event or Extraordinary Event or other event, in each case, that was
initiated by, and effectuated under the control of, Issuer (it being understood, for the avoidance
of doubt, that an event initiated by Issuer shall not be deemed to be effectuated outside of the
control of Issuer merely because effectuating such event requires approvals that are outside of
Issuer’s control). Issuer represents and warrants to Dealer (which representation and warranty
shall be deemed to be repeated on each day that the Transaction is outstanding) that the Capped
Number is equal to or less than the number of authorized but unissued Shares of the Issuer that are
not reserved for future issuance in connection with transactions in the Shares (other than the
Transaction) on the date of the determination of the Capped Number (such Shares, the “Available
Shares”). In the event Issuer shall not have delivered the full number of Shares otherwise
deliverable as a result of this Section 8(e) (the resulting deficit, the “Deficit Shares”), Issuer
shall be continually obligated to use commercially reasonable efforts to deliver Shares, from time
to time until the full number of Deficit Shares have been delivered pursuant to this paragraph,
when, and to the extent, that (A) Shares are repurchased, acquired or otherwise received by Issuer
or any of its subsidiaries after the Trade Date (whether or not in exchange for cash, fair value or
any other consideration), (B) authorized and unissued Shares reserved for issuance in respect of
other transactions prior to such date which prior to the relevant date become no longer so reserved
and (C) Issuer additionally authorizes any unissued Shares that are not reserved for other
transactions (such events as set forth in clauses (A), (B) and (C) above, collectively, the “Share
Issuance Events”). Issuer shall promptly notify Dealer of the occurrence of any of the Share
Issuance Events (including the number of Shares subject to clause (A), (B) or (C) and the
corresponding number of Shares to be delivered) and, as promptly as reasonably practicable, deliver
such Shares thereafter. Issuer shall not, until Issuer’s obligations under the Transaction have
been satisfied in full, use any Shares that become available for potential delivery to Dealer as a
result of any Share Issuance Event for the settlement or satisfaction of any transaction or
obligation other than the Transaction or reserve any such Shares for future issuance for any
purpose other than to satisfy Issuer’s obligations to Dealer under the Transaction.

     (f) Equity Rights. Dealer acknowledges and agrees that this Confirmation is not intended to
convey to it rights with respect to the Transaction that are senior to the claims of common
stockholders in the event of Issuer’s bankruptcy. For the avoidance of doubt, the parties agree
that the preceding sentence shall not apply at any time other than during Issuer’s bankruptcy to
any claim arising as a result of a breach by Issuer of any of its obligations under this
Confirmation or the Agreement. For the avoidance of doubt, the parties acknowledge that the
obligations of Issuer under this Confirmation are not secured by any collateral that would
otherwise secure the obligations of Issuer herein under or pursuant to any other agreement.

     (g) Amendments to Equity Definitions. The following amendments shall be made to the Equity
Definitions:

     (i) For the purposes of any adjustment under Section 11.2(c) of the Equity
Definitions, the first sentence of Section 11.2(c) of the Equity Definitions, prior to
clause (A) thereof, is hereby amended to read as follows: ‘(c) If “Calculation Agent
Adjustment” is specified as the Method of Adjustment in the related Confirmation of a Share
Option Transaction, then following the announcement or occurrence of any Potential
Adjustment Event, the Calculation

15

 

Agent will determine whether such Potential Adjustment Event has a material effect on
the theoretical value of the relevant Shares or options on the Shares and, if so, will (i)
make appropriate commercially reasonable adjustment(s), if any, to any one or more of:’
and, the portion of such sentence immediately preceding clause (ii) thereof is hereby
amended by deleting the words “diluting or concentrative” and the words “(provided that no
adjustments will be made to account solely for changes in volatility, expected dividends,
stock loan rate or liquidity relative to the relevant Shares)” and replacing such latter
phrase with the words “(and, for the avoidance of doubt, adjustments may be made to account
solely for changes in volatility, expected dividends, stock loan rate or liquidity relative
to the relevant Shares)”;

     (ii) Sections 11.2(a) and 11.2(e)(vii) of the Equity Definitions are hereby amended by
inserting at the end of each Section the phrase “or a material effect on the theoretical
value of the Warrants;”

     (iii) Section 12.9(b)(iv) of the Equity Definitions is hereby amended by (A) deleting
(1) subsection (A) in its entirety, (2) the phrase “or (B)” following subsection (A) and
(3) the phrase “in each case” in subsection (B); (B) replacing “will lend” with “lends” in
subsection (B); and (C) deleting the phrase “neither the Non-Hedging Party nor the Lending
Party lends Shares in the amount of the Hedging Shares or” in the penultimate sentence; and

     (iv) Section 12.9(b)(v) of the Equity Definitions is hereby amended by (A) adding the
word “or” immediately before subsection “(B)” and deleting the comma at the end of
subsection (A); and (B)(1) deleting subsection (C) in its entirety, (2) deleting the word
“or” immediately preceding subsection (C), (3) replacing in the penultimate sentence the
words “either party” with “the Hedging Party” and (4) deleting clause (X) in the final
sentence.

     (h) Transfer and Assignment. Dealer may transfer or assign its rights and obligations
hereunder and under the Agreement, in whole or in part, at any time without the consent of Issuer.
Dealer shall as soon as reasonably practicable notify Issuer of such transfer or assignment.

     (i) Disclosure. Effective from the date of commencement of discussions concerning the
Transaction, Issuer and each of its employees, representatives, or other agents may disclose to any
and all persons, without limitation of any kind, the tax treatment and tax structure of the
Transaction and all materials of any kind (including opinions or other tax analyses) that are
provided to Issuer relating to such tax treatment and tax structure.

     (j) Additional Termination Events. The occurrence of any of the following shall constitute an
Additional Termination Event with respect to which the Transaction shall be the sole Affected
Transaction and Issuer shall be the sole Affected Party and Dealer shall be the party entitled to
designate an Early Termination Date pursuant to Section 6(b) of the Agreement and to determine the
amount payable pursuant to Section 6(e) of the Agreement; provided that with respect to any
Additional Termination Event, Dealer may choose to treat part of the Transaction as the sole
Affected Transaction, and, upon the termination of the Affected Transaction, a Transaction with
terms identical to those set forth herein except with a Number of Warrants equal to the unaffected
number of Warrants shall be treated for all purposes as the Transaction, which shall remain in full
force and effect:

     (i) Dealer reasonably determines that it is advisable to terminate a portion of the
Transaction so that Dealer’s related hedging activities will comply with applicable
securities laws, rules or regulations or related policies and procedures of Dealer (whether
or not such requirements, policies or procedures are imposed by law or have been
voluntarily adopted by Dealer), or Dealer, despite using commercially reasonable efforts,
is unable or reasonably determines that it is impractical or illegal to hedge its
obligations pursuant to this Transaction in the public market without registration under
the Securities Act or as a result of any legal, regulatory or self-regulatory requirements;
or

     (ii) at any time at which any Excess Ownership Position (as defined above) occurs,
Dealer, in its discretion, is unable to effect a transfer or assignment to a third party of
the Transaction or any other transaction between the parties after using its commercially
reasonable efforts on pricing terms and within a time period reasonably acceptable to
Dealer such that an

16

 

Excess Ownership Position no longer exists; provided that Dealer shall treat only that
portion of the Transaction as the Affected Transaction as necessary so that such Excess
Ownership Position no longer exists; or

     (iii) a “person” or “group” within the meaning of Section 13(d) of the Exchange Act
other than Issuer or its subsidiaries files a Schedule TO or any schedule, form or report
under the Exchange Act disclosing that such person or group has become the direct or
indirect ultimate “beneficial owner,” as defined in Rule 13d-3 under the Exchange Act, of
Issuer’s common equity representing more than 50% of the voting power of Issuer’s common
equity; or

     (iv) consummation of any binding share exchange, exchange offer, tender offer,
consolidation or merger of Issuer pursuant to which the Shares will be converted into cash,
securities or other property or any sale, lease or other transfer in one transaction or a
series of transactions of all or substantially all of the consolidated assets of Issuer and
its subsidiaries, taken as a whole, to any person other than one or more of Issuer’s
subsidiaries (any such exchange, offer, consolidation, merger, transaction or series of
transactions being referred to herein as an “event”); provided, however, that any such
event where the holders of more than 50% of the Shares immediately prior to such event own,
directly or indirectly, more than 50% of all classes of common equity of the continuing or
surviving person or transferee or the parent thereof immediately after such event shall not
be an Additional Termination Event; or

     (v) the first day on which Continuing Directors cease to constitute at least a
majority of Issuer’s board of directors; or

     (vi) Issuer’s stockholders approve any plan or proposal for Issuer’s liquidation or
dissolution; or

     (vii) the Shares cease to be listed on at least one U.S. national securities exchange.

Notwithstanding the foregoing, an event set forth in clause (iv) above will not constitute an
Additional Termination Event if at least 90% of the consideration, excluding cash payments for
fractional shares, in the transaction or event that would otherwise have constituted an Additional
Termination Event consists of shares of common stock that are traded on at least one U.S. national
securities exchange or that will be so traded when issued or exchanged in connection with the
relevant transaction or event (these securities being referred to as “publicly traded securities”).

In addition, a filing that would otherwise constitute an Additional Termination Event under clause
(iii) above will not constitute an Additional Termination Event if (A) the filing occurs in
connection with a transaction in which the Shares are replaced by the securities of another entity
and (B) no such filing is made or is in effect with respect to common equity representing more than
50% of the voting power of such other entity.

“Continuing Director” means a director who either was a member of Issuer’s board of directors on
the Effective Date or who becomes a member of Issuer’s board of directors subsequent to that date
and whose election, appointment or nomination for election by Issuer’s stockholders, is duly
approved by a majority of the continuing directors on Issuer’s board of directors at the time of
such approval, either by a specific vote or by approval of the proxy statement issued by Issuer on
behalf of its entire board of directors in which such individual is named as nominee for director.

     (k) Effectiveness. If, on or prior to the Effective Date, Dealer reasonably determines that
it is advisable to cancel the Transaction because of concerns that Dealer’s related hedging
activities could be viewed as not complying with applicable securities laws, rules or regulations,
the Transaction shall be cancelled and shall not become effective, and neither party shall have any
obligation to the other party in respect of the Transaction.

     (l) Extension of Settlement. Dealer may divide any Component into additional Components and
designate the Expiration Date and the Number of Warrants for each such Component if Dealer
determines, in a commercially reasonable manner, that such further division is necessary or
advisable to preserve Dealer’s hedging or hedge unwind activity hereunder in light of existing
liquidity conditions in the

17

 

cash market or stock loan market or to enable Dealer to effect purchases of Shares in
connection with its hedging, hedge unwind or settlement activity hereunder in a manner that would,
if Dealer were Issuer or an affiliated purchaser of Issuer, be compliance with applicable legal,
regulatory and self-regulatory requirements, or with related policies and procedures applicable to
Dealer.

     (m) No Netting and Set-off. The provisions of Section 2(c) of the Agreement shall not apply
to the Transaction. Each party waives any and all rights it may have to set-off delivery or
payment obligations it owes to the other party under the Transaction against any delivery or
payment obligations owed to it by the other party, whether arising under the Agreement, under any
other agreement between parties hereto, by operation of law or otherwise.

     (n) Delivery of Cash. For the avoidance of doubt, nothing in this Confirmation shall be
interpreted as requiring the Issuer to deliver cash in respect of the settlement of the
Transaction, except in circumstances where the required cash settlement thereof is permitted for
classification of the contract as equity by EITF 00-19 as in effect on the relevant Trade Date
(including, without limitation, where the Issuer so elects to deliver cash or fails timely to elect
to deliver Shares or Share Termination Delivery Property in respect of such settlement).

     (o) Payments by Dealer upon Early Termination. The parties hereby agree that, notwithstanding
anything to the contrary herein, in the Definitions or in the Agreement, following the payment of
the Premium, in the event that an Early Termination Date (whether as a result of an Event of
Default or a Termination Event) occurs or is designated with respect to the Transaction or the
Transaction is terminated or cancelled pursuant to Article 12 of the Equity Definitions and, as a
result, Dealer would owe to Issuer an amount calculated under Section 6(e) of the Agreement or
Article 12 of the Equity Definitions, such amount shall be deemed to be zero.

     (p) Amendment. This Confirmation and the Agreement may not be modified, amended or
supplemented, except in a written instrument signed by Issuer and Dealer. If Morgan Stanley & Co.
Incorporated and Merrill Lynch, Pierce, Fenner & Smith Incorporated exercises the underwriters’ (as
defined in the Underwriting Agreement) right under the Underwriting Agreement dated as of April 6,
2009, between Issuer and Morgan Stanley & Co. Incorporated, Merrill Lynch, Pierce, Fenner & Smith
Incorporated, Citigroup Global Markets Inc. and Deutsche Bank Securities Inc. as managers for the
underwriters party thereto, to purchase additional convertible notes as set forth therein, then
Dealer and Issuer will either enter into a new confirmation evidencing a corresponding number of
additional warrants to be issued by Issuer to Dealer or amend this Confirmation (in each case on
pricing terms acceptable Dealer and Issuer) (such additional confirmation or amendment to this
Confirmation to provide for the payment by Dealer to Issuer of the additional premium related
thereto in an amount to be agreed between the parties).

     (q) Designation by Dealer. Notwithstanding any other provision in this Confirmation to the
contrary requiring or allowing Dealer to purchase, sell, receive or deliver any Shares or other
securities to or from Issuer, Dealer may designate any of its affiliates to purchase, sell, receive
or deliver such Shares or other securities and otherwise to perform Dealer’s obligations in respect
of the Transaction and any such designee may assume such obligations. Dealer shall be discharged
of its obligations to Issuer to the extent of any such performance.

     (r) Counterparts. This Confirmation may be executed in several counterparts, each of which
shall be deemed an original but all of which together shall constitute one and the same instrument.

     (s) Waiver of Trial by Jury. EACH OF ISSUER AND DEALER HEREBY IRREVOCABLY WAIVES (ON ITS OWN
BEHALF AND, TO THE EXTENT PERMITTED BY APPLICABLE LAW, ON BEHALF OF ITS STOCKHOLDERS) ALL RIGHT TO
TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED ON CONTRACT, TORT OR
OTHERWISE) ARISING OUT OF OR RELATING TO THE TRANSACTION OR THE ACTIONS OF DEALER OR ITS AFFILIATES
IN THE NEGOTIATION, PERFORMANCE OR ENFORCEMENT HEREOF.

     (t) Governing Law; Jurisdiction. THE AGREEMENT, THIS CONFIRMATION AND ALL MATTERS ARISING IN
CONNECTION WITH THE AGREEMENT AND THIS CONFIRMATION SHALL BE GOVERNED BY, AND CONSTRUED AND
ENFORCED IN

18

 

ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK (WITHOUT REFERENCE TO ITS CHOICE OF LAW
DOCTRINE, OTHER THAN TITLE 14 OF THE NEW YORK GENERAL OBLIGATIONS LAW). THE PARTIES HERETO
IRREVOCABLY SUBMIT TO THE EXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK AND THE
UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK IN CONNECTION WITH ALL MATTERS
RELATING HERETO AND WAIVE ANY OBJECTION TO THE LAYING OF VENUE IN, AND ANY CLAIM OF INCONVENIENT
FORUM WITH RESPECT TO, THESE COURTS.

19

 

     Issuer hereby agrees (a) to check this Confirmation carefully and immediately upon receipt so
that errors or discrepancies can be promptly identified and rectified and (b) to confirm that the
foregoing (in the exact form provided by Dealer) correctly sets forth the terms of the agreement
between Dealer and Issuer with respect to the Transaction, by manually signing this Confirmation or
this page hereof as evidence of agreement to such terms and providing the other information
requested herein and immediately returning an executed copy to us.

	 	 	 	 	 
	 	Yours faithfully,

BANK OF AMERICA, N.A.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	Agreed and Accepted By:	 	 
	 
	 	 	 	 
	BORGWARNER INC.	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Name:
	 	 
	 

	 	Title:	 	 

Signature Page to Warrant Confirmation

 

Annex A

For each Component of the Transaction, the Number of Warrants and Expiration Date is set forth
below.

[Insert Table Here]

 Signature Page to Warrant Confirmationexv10w3

EXHIBIT 10.3

FORM OF CONVERTIBLE BOND HEDGE TRANSACTION

Opening Transaction

	 	 	 
	To:

	 	BorgWarner Inc.
	 

	 	3850 Hamlin Road
	 

	 	Auburn Hills, MI 48326
	 
	 	 
	From:

	 	Morgan Stanley & Co. Incorporated
	 

	 	as Agent for Morgan Stanley & Co. International plc
	 

	 	1585 Broadway
	 

	 	4th Floor
	 

	 	New York, NY 10036
	 
	 	 
	Re:

	 	Convertible Bond Hedge Transaction
	 
	 	 
	Ref. No:

	 	99AH24L39
	 
	 	 
	Date:

	 	April 6, 2009

Dear Sir(s):

     The purpose of this communication (this “Confirmation”) is to set forth the terms and
conditions of the above-referenced transaction entered into on the Trade Date specified below (the
“Transaction”) between Morgan Stanley & Co. International plc (“Dealer”) and BorgWarner
Inc. (“Counterparty”). This communication constitutes a “Confirmation” as referred to in
the ISDA Master Agreement specified below.

     This Confirmation is subject to, and incorporates, the definitions and provisions of the 2006
ISDA Definitions (the “2006 Definitions”) and the definitions and provisions of the 2002 ISDA
Equity Derivatives Definitions (the “Equity Definitions”, and together with the 2006 Definitions,
the “Definitions”), in each case as published by the International Swaps and Derivatives
Association, Inc. (“ISDA”). In the event of any inconsistency between the 2006 Definitions and the
Equity Definitions, the Equity Definitions will govern. Certain defined terms used herein have the
meanings assigned to them in the Prospectus Supplement dated April 6, 2009 to the Prospectus dated
March 4, 2008 (the “Prospectus Supplement”) and the Supplemental Indenture, to be dated as of the
closing date of the initial issuance of the Convertible Securities described below, to the Senior
Indenture dated as of September 23, 1999 between Counterparty and The Bank of New York Trust
Company, N.A., as trustee (together, the “Indenture”), each relating to the USD325 million
principal amount of 3.50% convertible senior notes due April 15, 2012 (the “Convertible
Securities”). In the event of any inconsistency between the terms defined in the Indenture or
defined in the Prospectus Supplement and this Confirmation, this Confirmation shall govern. For
the avoidance of doubt, references herein to provisions of the Indenture are based on the
description of the Convertible Securities set forth in the Prospectus Supplement. If any relevant
provisions of the Indenture differ in any material respect from those described in the Prospectus
Supplement, the parties will, if appropriate, amend this Confirmation in good faith to preserve the
economic intent of the parties. The parties further acknowledge that references to the Indenture
herein are references to the Indenture as in effect on the date of its execution, and if the
Indenture is amended, modified or supplemented following its execution, any such amendment,
modification or supplement will be disregarded for purposes of this Confirmation (other than for
purposes of Section 8(b) below) unless the parties agree otherwise in writing. The Transaction is
subject to early unwind if the closing of the Convertible Securities is not consummated for any
reason, as set forth below in Section 8(k).

1

 

     Each party is hereby advised, and each such party acknowledges, that the other party has
engaged in, or refrained from engaging in, substantial financial transactions and has taken other
material actions in reliance upon the parties’ entry into the Transaction to which this
Confirmation relates on the terms and conditions set forth below.

     This Confirmation evidences a complete and binding agreement between Dealer and Counterparty
as to the terms of the Transaction to which this Confirmation relates. This Confirmation shall be
subject to an agreement (the “Agreement”) in the form of the 1992 ISDA Master Agreement
(Multicurrency—Cross Border) as if Dealer and Counterparty had executed an agreement in such form
on the date hereof (but without any Schedule except for (i) the election of Loss and Second Method
and US Dollars (“USD”) as the Termination Currency, (ii) the replacement of the word “third” in the
last line of Section 5(a)(i) of the Agreement with the word “second,” (iii) the election that the
“Cross Default” provisions of Section 5(a)(vi) of the Agreement shall apply to Counterparty with a
“Threshold Amount” of USD25 million and (iv) such other elections as set forth in this
Confirmation.

     All provisions contained in, or incorporated by reference to, the Agreement will govern this
Confirmation except as expressly modified herein. In the event of any inconsistency between this
Confirmation and either the Definitions or the Agreement, this Confirmation shall govern.

     The Transaction hereunder shall be the sole Transaction under the Agreement. If there exists
any ISDA Master Agreement between Dealer and Counterparty or any confirmation or other agreement
between Dealer and Counterparty pursuant to which an ISDA Master Agreement is deemed to exist
between Dealer and Counterparty, then notwithstanding anything to the contrary in such ISDA Master
Agreement, such confirmation or agreement or any other agreement to which Dealer and Counterparty
are parties, the Transaction shall not be considered a Transaction under, or otherwise governed by,
such existing or deemed ISDA Master Agreement.

     The Transaction constitutes a Share Option Transaction for purposes of the Equity Definitions.
The terms of the particular Transaction to which this Confirmation relates are as follows:

General Terms:

	 	 	 
	Trade Date:

	 	April 6, 2009

	 	 	 

	Effective Date:

	 	The closing date of the initial issuance of the Convertible Securities.

	 	 	 

	Option Style:

	 	Modified American, as described under “Procedures for Exercise” below.

	 	 	 

	Option Type:

	 	Call

	 	 	 

	Seller:

	 	Dealer

	 	 	 

	Buyer:

	 	Counterparty

	 	 	 

	Shares:

	 	The Common Stock of Counterparty, par value USD0.01 per share (Ticker Symbol: “BWA”).

	 	 	 

	Number of Options:

	 	The number of Convertible Securities in denominations of USD1,000
principal amount issued by Counterparty on the closing date for the initial issuance
of the Convertible Securities; provided that the Number of Options shall be
automatically increased as of the date of exercise by Morgan Stanley & Co.
Incorporated and Merrill Lynch, Pierce, Fenner & Smith Incorporated of the
underwriters’ option pursuant to Section 2 of the Underwriting Agreement dated as of
April 6, 2009,

2

 

	 	 	 
	 	 	between Counterparty and Morgan Stanley & Co.
Incorporated, Merrill Lynch, Pierce, Fenner &
Smith Incorporated, Citigroup Global Markets Inc.
and Deutsche Bank Securities Inc. as managers for
the underwriters party thereto (the “Underwriting
Agreement”) by the number of Convertible
Securities in denominations of USD1,000 principal
amount issued pursuant to such exercise (such
Convertible Securities, the “Additional
Convertible Securities”). For the avoidance of
doubt, the Number of Options outstanding shall be
reduced by each exercise of Options hereunder.

	 	 	 

	Applicable Percentage:

	 	50% 

	 	 	 

	Option Entitlement:

	 	As of any date, a number of Shares per Option equal to the “Conversion
Rate” (as defined in the Indenture as described in the Prospectus Supplement under
“Description of Notes — Conversion Rights — General”), but without regard to any
adjustments to the Conversion Rate as set forth in the section of the Indenture
containing the provision described in the Prospectus Supplement under “Description of
Notes — Conversion Rights — Adjustment to Shares Delivered upon Conversion upon
Certain Corporate Transactions” (a “Fundamental Change Adjustment”) or a discretionary
adjustment as set forth in the section of the Indenture containing the provisions
described in the fifth to last paragraph in the Prospectus Supplement under
“Description of Notes — Conversion Rights — Conversion Rate Adjustments” (i.e., the
paragraph commencing with “We are permitted to increase...”) (a “Discretionary
Adjustment”).

	 	 	 

	Strike Price:

	 	As of any date, an amount in USD, rounded to the nearest cent (with 0.5 cents
being rounded upwards), equal to USD1,000 divided by the Option Entitlement as of such
date.

	 	 	 

	Number of Shares:

	 	As of any date, the product of the Number of Options and the Option
Entitlement and the Applicable Percentage.

	 	 	 

	Premium:

	 	USD24,553,750 (Premium per Option USD75.55); provided that if the Number of
Options is increased pursuant to the proviso to the definition of “Number of Options”
above, an additional Premium equal to the product of the number of Options by which
the Number of Options is so increased and the Premium per Option shall be paid on the
Additional Premium Payment Date.

	 	 	 

	Premium Payment Date:

	 	The Effective Date

	 	 	 

	Additional Premium Payment Date:

	 	The closing date for the purchase and sale of the
Additional Convertible Securities.

	 	 	 

	Exchange:

	 	New York Stock Exchange

3

 

	 	 	 
	Related Exchange:

	 	All Exchanges located in the United States.

	 	 	 

	Procedures for Exercise:
	 	 

	 	 	 

	Potential Exercise Dates:

	 	Each Conversion Date.

	 	 	 

	Conversion Date:

	 	Each “Conversion Date” (as defined in the Indenture as described in the
Prospectus Supplement under “Description of Notes — Conversion Rights — General”)
occurring during the Exercise Period for Convertible Securities each in denominations
of USD1,000 principal amount (such Convertible Securities, the “Relevant Convertible
Securities” for such Conversion Date).

	 	 	 

	Exercise Period:

	 	The period from and excluding the Effective Date to and including the
Expiration Date.

	 	 	 

	Expiration Date:

	 	The earlier of (i) the last day on which any Convertible Securities remain
outstanding and (ii) the second “Scheduled Trading Day” (as defined in the Indenture
as described in the Prospectus Supplement under “Description of Notes — Conversion
Rights — Settlement upon Conversion”) immediately preceding the “Maturity Date” (as
defined in the Indenture as described in the Prospectus Supplement under “Description
of Notes — General”).

	 	 	 

	Automatic Exercise on
Conversion Dates:

	 	Applicable; and means that on each Conversion Date, a number of Options
equal to the number of Relevant Convertible Securities for such Conversion Date in
denominations of USD1,000 principal amount shall be automatically exercised, subject
to “Notice of Exercise” below.

	 	 	 

	Notice Deadline:

	 	In respect of any exercise of Options hereunder on any Conversion Date,
12:00 P.M., New York City time, on the Exchange Business Day prior to the first
“Scheduled Trading Day” of the “Cash Settlement Averaging Period” (each as defined in
the Indenture as described in the Prospectus Supplement under “Description of Notes —
Conversion Rights — Settlement upon Conversion” and, for the avoidance of doubt,
irrespective of whether Counterparty’s election of the settlement method with respect
to the Relevant Convertible Securities includes any portion thereof to be delivered in
cash) relating to the Convertible Securities converted on the Conversion Date
occurring on the relevant Exercise Date; provided that in the case of any exercise of
Options hereunder in connection with the conversion of any Relevant Convertible
Securities on any Conversion Date occurring during the Final Convertibility Period (as
defined below), the Notice Deadline shall be 12:00 P.M., New York City time, on the
Exchange Business Day immediately following such Conversion Date.

4

 

	 	 	 
	Notice of Exercise:

	 	Notwithstanding anything to the contrary in the Equity Definitions,
Dealer shall have no obligation to make any payment or delivery in respect of any
exercise of Options hereunder unless Counterparty notifies Dealer in writing prior to
12:00 P.M., New York City time, on the Notice Deadline in respect of such exercise of
(i) the number of Options being exercised on such Exercise Date, (ii) the scheduled
settlement date under the Indenture for the Convertible Securities converted on the
Conversion Date corresponding to such Exercise Date, (iii) whether such Relevant
Convertible Securities will be settled by Counterparty by delivery of cash, Shares or
a combination of cash and Shares and, if such a combination, the applicable “Specified
Dollar Amount” (as defined in the Indenture as described in the Prospectus Supplement
under “Description of Notes — Conversion Rights — Settlement upon Conversion”) and
(iv) the first “Scheduled Trading Day” of the “Cash Settlement Averaging Period” (each
as defined in the Indenture as described in the Prospectus Supplement under
“Description of Notes — Conversion Rights — Settlement upon Conversion”); provided
that in the case of any exercise of Options hereunder in connection with the
conversion of any Relevant Convertible Securities on any Conversion Date occurring
during the Final Convertibility Period, the contents of such notice shall be as set
forth in clause (i) above and, in the case of any exercise of Options hereunder in
connection with the conversion of any Relevant Convertible Securities occurring on or
after December 15, 2011, Counterparty shall notify Dealer of the settlement method and
the applicable “Specified Dollar Amount” (as defined in the Indenture as described in
the Prospectus Supplement under “Description of Notes — Conversion Rights — Settlement
upon Conversion”) as provided in “Notice of Specified Dollar Amount for Conversions
during the Final Convertibility Period” below. Counterparty acknowledges its
responsibilities under applicable securities laws, and in particular Section 9 and
Section 10(b) of the Exchange Act (as defined below) and the rules and regulations
thereunder, in respect of any election of a settlement method with respect to the
Convertible Securities. For the avoidance of doubt, if Counterparty fails to give
such notice when due in respect of any exercise of Options hereunder, Dealer’s
obligation to make any payment or delivery in respect of such exercise shall be
permanently extinguished, and late notice shall not cure such failure; provided that
notwithstanding the foregoing, such notice (and the related exercise of Options) shall
be effective if given after the Notice Deadline, but prior to (x) in the case of the
Final Convertibility Period, 5:00 P.M., New York City time, on the

5

 

	 	 	 
	 	 	Scheduled Trading Day immediately preceding the
relevant Settlement Date and (y) in all other
cases, 5:00 P.M., New York City time, on the
fifth Exchange Business Day following the Notice
Deadline, in which event, except in the case of
the Final Convertibility Period, the Calculation
Agent shall have the right to adjust the Delivery
Obligation as appropriate to reflect the
additional costs (including, but not limited to,
hedging mismatches and market losses) and
expenses incurred by Dealer in connection with
its hedging activities (including the unwinding
of any hedge position) as a result of Dealer not
having received such notice on or prior to the
Notice Deadline.

	 	 	 

	Notice of Specified Dollar Amount for
Conversions during  the
Final Convertibility Period:

	 	
 Counterparty shall notify Dealer in writing before
5:00 P.M., New York City time, on the “Scheduled Trading Day” (as defined in the
Indenture as described in the Prospectus Supplement under “Description of Notes —
Conversion Rights — Settlement upon Conversion”) immediately prior to December 15,
2011 of the election by the Counterparty, in accordance with the provision of the
Indenture described in the Prospectus Supplement under “Description of Notes —
Conversion Rights — Settlement upon Conversion,” of the settlement method and, if
applicable, the “Specified Dollar Amount” (as defined in the Indenture as described in
the Prospectus Supplement under “Description of Notes — Conversion Rights —
Settlement upon Conversion”) applicable to the Relevant Convertible Securities with a
Conversion Date occurring on or after December 15, 2011 and ending on, and including,
the second “Scheduled Trading Day” immediately preceding the “Maturity Date” (as
defined in the Indenture as described in the Prospectus Supplement under “Description
of Notes — General”) (the “Final Convertibility Period”). If Counterparty fails
timely to provide such notice, Counterparty shall be deemed to have notified Dealer of
combination settlement with a “Specified Dollar Amount” (as defined in the Indenture
as described in the Prospectus Supplement under “Description of Notes — Conversion
Rights — Settlement upon Conversion”) of USD1,000. Counterparty agrees that it shall
settle any Relevant Convertible Securities with a Conversion Date occurring during the
Final Convertibility Period in the same manner as provided in the Notice of Specified
Dollar Amount for Conversions during the Final Convertibility Period it provides or is
deemed to have provided hereunder.

6

 

	 	 	 	 	 
	 

	 	Dealer’s Telephone Number
and Telex and/or Facsimile Number
and Contact Details for purpose of
Giving Notice:
	 	As specified in Section 6(b) below.

Settlement Terms:

	 	 	 	 	 
	 

	 	Settlement Date:
	 	In respect of an Exercise Date occurring on a Conversion Date, the
settlement date for the cash and Shares (if any) to be delivered in respect of the
Relevant Convertible Securities converted on such Conversion Date pursuant to the
section of the Indenture containing the provisions described in the Prospectus
Supplement under “Description of Notes — Conversion Rights — Settlement upon
Conversion”; provided that the Settlement Date will not be prior to the latest of (i)
the date that is one Settlement Cycle following the final day of the relevant Cash
Settlement Averaging Period (as modified herein), (ii) the Exchange Business Day
immediately following the date on which Counterparty gives notice to Dealer of such
Settlement Date prior to 5:00 P.M., New York City time and (iii) the Exchange Business
Day immediately following the date Counterparty provides the Notice of Delivery
Obligation prior to 12:00 P.M., New York City time.
	 
	 	 	 	 
	 

	 	Delivery Obligation:
	 	In lieu of the obligations set forth in Sections 8.1 and 9.1 of the
Equity Definitions, and subject to “Notice of Exercise” above, in respect of an
Exercise Date occurring on a Conversion Date, Dealer will deliver to Counterparty, on
the related Settlement Date, a number of Shares and/or amount of cash in USD equal to
the product of (i) the Applicable Percentage and (ii) the aggregate number of Shares
(and cash in lieu of fractional Shares) that Counterparty would be obligated to
deliver to the holder(s) of the Relevant Convertible Securities converted on such
Conversion Date pursuant to the section of the Indenture containing the provisions
described in the Prospectus Supplement under “Description of Notes — Conversion Rights
— Settlement upon Conversion” and/or the aggregate amount of cash, if any, in excess
of USD1,000 per Convertible Security (in denominations of USD1,000) that Counterparty
would be obligated to deliver to holder(s) pursuant to the section of the Indenture
containing the provisions described in the Prospectus Supplement under “Description of
Notes — Conversion Rights — Settlement upon Conversion” and cash in lieu of fractional
Shares, if any, as if Counterparty had elected to satisfy its conversion obligation in
respect of such Relevant Convertible Securities by the Convertible Security Settlement
Method, notwithstanding any different actual election by Counterparty with respect to
the settlement of such

7

 

	 	 	 	 	 
	 

	 	 	 	Relevant Convertible Securities (the “Convertible
Obligation”); provided that such obligation shall
be determined excluding any Shares and/or cash
that Counterparty is obligated to deliver to
holder(s) of the Relevant Convertible Securities
as a result of any adjustments to the Conversion
Rate pursuant to a Fundamental Change Adjustment
or a Discretionary Adjustment. Notwithstanding
the foregoing, in all events the Delivery
Obligation shall be capped so that the value of
the Delivery Obligation does not exceed the
Applicable Percentage of the value of the
Convertible Obligation (with the Convertible
Obligation determined based on the actual
settlement method elected by Counterparty with
respect to such Relevant Convertible Securities
instead of the Convertible Security Settlement
Method and with the value of any Shares included
in either the Delivery Obligation or such
Convertible Obligation determined by the
Calculation Agent using the VWAP Price on the
last day of the relevant Cash Settlement
Averaging Period (as modified herein)).
	 
	 	 	 	 
	 

	 	Convertible Security
Settlement Method:
	 	For any Relevant Convertible Securities, if
Counterparty has notified Dealer in the related Notice of Exercise (or in the Notice
of Specified Dollar Amount for Conversions during the Final Convertibility Period, as
the case may be) that it has elected (or been deemed to have elected) to satisfy its
conversion obligation in respect of such Relevant Convertible Securities in cash or in
a combination of cash and Shares in accordance with the section of the Indenture
containing the provisions described in the Prospectus Supplement under “Description
of Notes — Conversion Rights — Settlement upon Conversion” (a “Cash Election”) with a
“Specified Dollar Amount” (as defined in the Indenture as described in the Prospectus
Supplement under “Description of Notes — Conversion Rights — Settlement upon
Conversion”) of at least USD1,000, the Convertible Security Settlement Method shall be
the settlement method actually so elected or deemed to have been elected by
Counterparty in the related Notice of Exercise or the related Notice of Specified
Dollar Amount, as the case may be, in respect of such Relevant Convertible Securities;
otherwise, the Convertible Security Settlement Method shall (i) assume Counterparty
had made a Cash Election with respect to such Relevant Convertible Securities with a
“Specified Dollar Amount” (as defined in the Indenture as described in the Prospectus
Supplement under “Description of Notes — Conversion Rights — Settlement upon
Conversion”) of USD1,000 per Relevant Convertible Security and (ii) be calculated as
if the relevant “Cash Settlement Averaging Period” consisted of 80 “Trading Days”
(each, as defined in the Indenture as described in the

8

 

	 	 	 	 	 
	 

	 	 	 	Prospectus Supplement under “Description of Notes
— Conversion Rights — Settlement upon
Conversion”) commencing on (x) the third
“Scheduled Trading Day” (as defined in the
Indenture as described in the Prospectus
Supplement under “Description of Notes —
Conversion Rights — Settlement upon Conversion”)
after the Conversion Date for conversions
occurring prior to the Final Convertibility
Period or (y) the 82nd “Scheduled Trading Day”
(as defined in the Indenture as described in the
Prospectus Supplement under “Description of Notes
— Conversion Rights — Settlement upon
Conversion”) prior to the “Maturity Date” (as
defined in the Indenture as described in the
Prospectus Supplement under “Description of Notes
— General”) for conversions occurring during the
Final Convertibility Period.
	 
	 	 	 	 
	 

	 	Notice of Delivery Obligation:
	 	No later than the second Exchange Business Day immediately
following the last day of the relevant Cash Settlement Averaging Period (as modified
herein), Counterparty shall give Dealer notice of the final number of Shares and/or
cash comprising the Convertible Obligation; provided that, with respect to any
Exercise Date occurring during the Final Convertibility Period, Counterparty may
provide Dealer with a single notice of an aggregate number of Shares and/or cash
comprising the Convertible Obligations for all Exercise Dates occurring in such period
(it being understood, for the avoidance of doubt, that the requirement of Counterparty
to deliver such notice shall not limit Counterparty’s obligations with respect to
Notice of Exercise or Notice of Specified Dollar Amount for Conversions during the
Final Convertibility Period.
	 
	 	 	 	 
	 

	 	Other Applicable Provisions:
	 	To the extent Dealer is obligated to deliver Shares
hereunder, the provisions of Sections 9.1(c), 9.8, 9.9, 9.10, 9.11 (except that the
Representation and Agreement contained in Section 9.11 of the Equity Definitions shall
be modified by excluding any representations therein relating to restrictions,
obligations, limitations or requirements under applicable securities laws arising as a
result of the fact that Counterparty is the Issuer of the Shares) and 9.12 of the
Equity Definitions will be applicable as if “Physical Settlement” applied to the
Transaction.

Adjustments:

	 	 	 	 	 
	 

	 	Method of Adjustment:
	 	Notwithstanding Section 11.2 of the Equity Definitions, upon the
occurrence of any event or condition set forth in the sections of the Indenture
containing the provisions described in the Prospectus Supplement under “Description of
Notes — Conversion Rights — Conversion Rate Adjustments” other than any event or
condition that would result in a Fundamental Change Adjustment or a

9

 

	 	 	 	 	 
	 

	 	 	 	Discretionary Adjustment or a Merger Event (as
defined below) (each an “Adjustment Event”), the
Calculation Agent shall make the corresponding
adjustment in respect of any one or more of the
Number of Options, the Option Entitlement and any
other variable relevant to the exercise,
settlement, payment or other terms of the
Transaction, to the extent an analogous
adjustment is made under the Indenture. Promptly
upon the occurrence of any Adjustment Event
Counterparty shall notify the Calculation Agent
of such Adjustment Event; and once the
adjustments to be made to the terms of the
Indenture and the Convertible Securities in
respect of such Adjustment Event have been
determined, Counterparty shall promptly notify
the Calculation Agent in writing of the details
of such adjustments. The Calculation Agent shall,
promptly after receiving such notice, make any
corresponding adjustments to the terms of the
Transaction and promptly notify Dealer and
Counterparty thereof.

Extraordinary Events:

	 	 	 	 	 
	 

	 	Merger Events:
	 	Notwithstanding Section 12.1(b) of the Equity Definitions, a “Merger Event”
means the occurrence of any event or condition set forth in the section of the
Indenture containing the provisions described in the eighth to last paragraph in the
Prospectus Supplement under “Description of Notes — Conversion Rights — Conversion
Rate Adjustments” (i.e., the paragraph commencing with “In the event of: any
reclassification...”).
	 
	 	 	 	 
	 

	 	Consequences of Merger Events:
	 	Notwithstanding Section 12.2 of the Equity Definitions, upon
the occurrence of a Merger Event, the Calculation Agent shall make the corresponding
adjustment in respect of any adjustment under the Indenture to any one or more of the
nature of the Shares, the Number of Options, the Option Entitlement and any other
variable relevant to the exercise, settlement, payment or other terms of the
Transaction, to the extent an analogous adjustment is made under the Indenture in
respect of such Merger Event; provided that such adjustment shall be made without
regard to any adjustment to the Conversion Rate pursuant to a Fundamental Change
Adjustment or a Discretionary Adjustment; and provided further that if, with respect
to a Merger Event, the consideration for the Shares includes (or, at the option of a
holder of Shares, may include) shares (or depositary receipts with respect to shares)
of an entity or person not organized under the laws of the United States, any State
thereof or the District of Columbia, Cancellation and Payment (Calculation Agent
Determination) shall apply.

10

 

	 	 	 	 	 
	 

	 	Notice of Merger Consideration and
Consequences:
	 	Upon the occurrence of a Merger Event that causes the Shares to be converted
into the right to receive more than a single type of consideration (determined based
in part upon any form of stockholder election), Counterparty shall reasonably promptly
(but in any event on or prior to the relevant merger date) notify the Calculation
Agent of (i) the type and amount of consideration that a holder of Shares would have
been entitled to in the case of reclassifications, consolidations, mergers, sales or
transfers of assets or other transactions that cause Shares to be converted into the
right to receive more than a single type of consideration, (ii) the weighted average
of the types and amounts of consideration to be received by the holders of Shares that
affirmatively make such an election (or if no holders of Shares affirmatively make
such an election, the types and amount of consideration actually received by such
holders), and (iii) the details of the adjustment to be made under the Indenture in
respect of such Merger Event.
	 
	 	 	 	 
	 

	 	Nationalization, Insolvency
or Delisting:
	 	Cancellation and Payment (Calculation Agent Determination);
provided that in addition to the provisions of Section 12.6(a)(iii) of the Equity
Definitions, it will also constitute a Delisting if the Exchange is located in the
United States and the Shares are not immediately re-listed, re-traded or re-quoted on
any of the New York Stock Exchange, The NASDAQ Global Select Market or The NASDAQ
Global Market (or their respective successors); if the Shares are immediately
re-listed, re-traded or re-quoted on any such exchange or quotation system, such
exchange or quotation system shall thereafter be deemed to be the Exchange.
	 
	 	 	 	 
	 

	 	Additional Disruption Events:	 	 
	 
	 	 	 	 
	 

	 	     (a) Change in Law:
	 	Applicable; provided that Section 12.9(a)(ii) of the
Equity Definitions is hereby amended by (i) replacing the phrase “the
interpretation” in the third line thereof with the phrase “or announcement or
statement of the formal or informal interpretation” and (ii) immediately following
the word “Transaction” in clause (X) thereof, adding the phrase “in the manner
contemplated by Hedging Party on the Trade Date.”
	 
	 	 	 	 
	 

	 	     (b) Failure to Deliver:
	 	Applicable
	 
	 	 	 	 
	 

	 	     (c) Insolvency Filing:
	 	Applicable
	 
	 	 	 	 
	 

	 	     (d) Hedging Disruption:
	 	Applicable
	 
	 	 	 	 
	 

	 	     (e) Increased Cost of Hedging:
	 	Applicable
	 
	 	 	 	 
	 

	 	Hedging Party:
	 	Dealer for all applicable Additional Disruption Events
	 
	 	 	 	 
	 

	 	Determining Party:
	 	Dealer for all applicable Additional Disruption Events

11

 

	 	 	 	 	 
	 

	 	Non-Reliance:
	 	Applicable
	 
	 	 	 	 
	 

	 	Agreements and Acknowledgments
Regarding Hedging Activities:
	 	Applicable
	 
	 	 	 	 
	 

	 	Additional Acknowledgments:
	 	Applicable
	 
	 	 	 	 
	 

	 	Calculation Agent:
	 	Dealer. All determinations made by the Calculation Agent shall
be made in good faith and in a commercially reasonable manner. Following any
calculation by the Calculation Agent hereunder, upon a prior written request by
Counterparty, the Calculation Agent will provide to Counterparty by e-mail to the
e-mail address provided by Counterparty in such prior written request a report (in a
commonly used file format for the storage and manipulation of financial data)
displaying in reasonable detail the basis for such calculation, it being understood
that the Calculation Agent shall not be obligated to disclose any proprietary models
used by it for such calculation. No transferee of Dealer with respect to any Options
in accordance with the terms of this Confirmation shall act as Calculation Agent with
respect to such transferred Options without the prior consent of Counterparty, such
consent not to be unreasonably withheld or delayed.

     Account Details:

          Dealer Payment Instructions:

               To be provided by Dealer.

          Counterparty Payment Instructions:

               To be provided by Counterparty.

     Offices:

          The Office of Dealer for the Transaction is:

               Morgan Stanley & Co. Incorporated, as agent for

               Morgan Stanley & Co. International plc

               1585 Broadway

               4th Floor

               New York, NY 10036

          The Office of Counterparty for the Transaction is:

     Inapplicable. Counterparty is not a Multibranch Party.

     Notices: For purposes of this Confirmation:

     (a) Address for notices or communications to Counterparty:

	 	 	 	 	 
	 

	 	To:
	 	BorgWarner Inc.
	 

	 	 	 	3850 Hamlin Road
	 

	 	 	 	Auburn Hills, MI 48326
	 

	 	Attn:
	 	Anthony D. Hensel,
	 

	 	 	 	Vice President and Treasurer
	 

	 	Telephone:
	 	248-754-0861
	 

	 	Facsimile:
	 	248-754-9069

12

 

     (b) Address for notices or communications to Dealer:

	 	 	 	 	 
	 

	 	To:
	 	Morgan Stanley & Co. Incorporated, as agent for
	 

	 	 	 	Morgan Stanley & Co. International plc
	 

	 	 	 	1585 Broadway
	 

	 	 	 	4th Floor
	 

	 	 	 	New York, NY 10036
	 

	 	Attn:
	 	Jonathan Ross
	 

	 	Telephone:
	 	212-761-2035
	 

	 	Facsimile:
	 	212-507-2441
	 

	 	Email:
	 	Jonathan.M.Ross@morganstanley.com
	 
	 	 	 	 
	 

	 	With a copy to:
	 	Morgan Stanley & Co. Incorporated, as agent for
	 

	 	 	 	Morgan Stanley & Co. International plc
	 

	 	 	 	1221 Avenue of the Americas
	 

	 	 	 	34th Floor
	 

	 	 	 	New York, NY 10020
	 

	 	Attn:
	 	Anthony Cicia
	 

	 	Telephone:
	 	212-762-4828
	 

	 	Facsimile:
	 	212-507-4338
	 

	 	Email:
	 	Anthony.Cicia@morganstanley.com

     Representations, Warranties and Agreements:

     (a) In addition to the representations and warranties in the Agreement and those contained
elsewhere herein, Counterparty represents and warrants to and for the benefit of, and agrees with,
Dealer as follows:

     (i) On the Trade Date, and as of the date of any election by Counterparty of the Share
Termination Alternative under (and as defined in) Section 8(c) below, none of Counterparty
and its executive officers and directors is aware of any material nonpublic information
regarding Counterparty or the Shares. On the Trade Date, all reports and other documents
filed by Counterparty with the Securities and Exchange Commission pursuant to the
Securities Exchange Act of 1934, as amended (the “Exchange Act”) when considered as a whole
(with the more recent such reports and documents deemed to amend inconsistent statements
contained in any earlier such reports and documents), do not contain any untrue statement
of a material fact or any omission of a material fact required to be stated therein or
necessary to make the statements therein, in the light of the circumstances in which they
were made, not misleading.

     (ii) (A) On the Trade Date, the Shares or securities that are convertible into, or
exchangeable or exercisable for Shares, are not, and shall not be, subject to a “restricted
period,” as such term is defined in Regulation M under the Exchange Act (“Regulation M”)
and (B) Counterparty shall not engage in any “distribution,” as such term is defined in
Regulation M, other than a distribution meeting the requirements of the exceptions set
forth in sections 101(b)(10) and 102(b)(7) of Regulation M, until the second Exchange
Business Day immediately following the Trade Date.

     (iii) Without limiting the generality of Section 13.1 of the Equity Definitions,
Counterparty acknowledges that neither Dealer nor any of its affiliates is making any
representations or warranties or taking a position or expressing any view with respect to
the treatment of the Transaction under any accounting standards, including FASB Statements
128, 133 (as amended), 149 or 150, EITF Issue No. 00-19, 01-6, 03-6 or 07-5 (or any
successor issue statements) or under the FASB’s Liabilities & Equity Project.

     (iv) Without limiting the generality of Section 3(a)(iii) of the Agreement, the
Transaction will not violate Rule 13e-1 or Rule 13e-4 under the Exchange Act.

13

 

     (v) Prior to the Trade Date, Counterparty shall deliver to Dealer a resolution of
Counterparty’s board of directors authorizing the Transaction and such other certificate or
certificates as Dealer shall reasonably request.

     (vi) Counterparty is not entering into this Confirmation to create actual or apparent
trading activity in the Shares (or any security convertible into or exchangeable for
Shares) or to raise or depress or otherwise manipulate the price of the Shares (or any
security convertible into or exchangeable for Shares) or to otherwise violate the Exchange
Act.

     (vii) Counterparty is not, and after giving effect to the transactions contemplated
hereby will not be, required to register as, an “investment company” as such term is
defined in the Investment Company Act of 1940, as amended.

     (viii) On each of the Trade Date, the Premium Payment Date and the Additional Premium
Payment Date, if any, Counterparty is not “insolvent” (as such term is defined under
Section 101(32) of the U.S. Bankruptcy Code (Title 11 of the United States Code) (the
“Bankruptcy Code”)) and Counterparty would be able to purchase the Shares hereunder in
compliance with the laws of the jurisdiction of Counterparty’s incorporation.

     (ix) Counterparty understands no obligations of Dealer to it hereunder will be
entitled to the benefit of deposit insurance and that such obligations will not be
guaranteed by any governmental agency.

     (b) Each of Dealer and Counterparty agrees and represents that it is an “eligible contract
participant” as defined in Section 1a(12) of the U.S. Commodity Exchange Act, as amended.

     (c) Each of Dealer and Counterparty acknowledges that the offer and sale of the Transaction to
it is intended to be exempt from registration under the Securities Act of 1933, as amended (the
“Securities Act”), by virtue of Section 4(2) thereof. Accordingly, Counterparty represents and
warrants to Dealer that (i) it has the financial ability to bear the economic risk of its
investment in the Transaction and is able to bear a total loss of its investment and its
investments in and liabilities in respect of the Transaction, which it understands are not readily
marketable, are not disproportionate to its net worth, and it is able to bear any loss in
connection with the Transaction, including the loss of its entire investment in the Transaction,
(ii) it is an “accredited investor” as that term is defined in Regulation D as promulgated under
the Securities Act, (iii) it is entering into the Transaction for its own account and without a
view to the distribution or resale thereof, (iv) the assignment, transfer or other disposition of
the Transaction has not been and will not be registered under the Securities Act and is restricted
under this Confirmation, the Securities Act and state securities laws, and (v) its financial
condition is such that it has no need for liquidity with respect to its investment in the
Transaction and no need to dispose of any portion thereof to satisfy any existing or contemplated
undertaking or indebtedness and is capable of assessing the merits of and understanding (on its own
behalf or through independent professional advice), and understands and accepts, the terms,
conditions and risks of the Transaction.

     (d) Subject to Section 8(j): Each of Dealer and Counterparty agrees and acknowledges that
Dealer is a “financial institution,” “swap participant” and “financial participant” within the
meaning of Sections 101(22), 101(53C) and 101(22A) of the Bankruptcy Code. The parties hereto
further agree and acknowledge (A) that this Confirmation is (i) a “securities contract,” as such
term is defined in Section 741(7) of the Bankruptcy Code, with respect to which each payment and
delivery hereunder or in connection herewith is a “termination value,” “payment amount” or “other
transfer obligation” within the meaning of Section 362 of the Bankruptcy Code and a “settlement
payment” within the meaning of Section 546 of the Bankruptcy Code, and (ii) a “swap agreement,” as
such term is defined in Section 101(53B) of the Bankruptcy Code, with respect to which each payment
and delivery hereunder or in connection herewith is a “termination value,” “payment amount” or
“other transfer obligation” within the meaning of Section 362 of the Bankruptcy Code and a
“transfer” within the meaning of Section 546 of the Bankruptcy Code, and (B) that Dealer is
entitled to the protections afforded by, among other sections, Sections 362(b)(6), 362(b)(17),
362(b)(27), 362(o), 546(e), 546(g), 546(j), 548(d)(2), 555, 560 and 561 of the Bankruptcy Code.

     (e) Counterparty shall deliver to Dealer (i) an incumbency certificate, dated as of the Trade
Date, of Counterparty in customary form and (ii) an opinion of counsel, dated as of the Trade Date
and

14

 

reasonably acceptable to Dealer in form and substance, with respect to due incorporation,
existence and good standing of the Counterparty in Delaware, its qualifications as a foreign
corporation and good standing in Michigan, the due authorization, execution and delivery of the
Confirmation, and the absence of conflict of the execution and delivery of the Confirmation with
any material agreement required to be filed as any exhibit to the Counterparty’s Annual Report on
Form 10-K and the Counterparty’s charter documents.

     (f) Each party acknowledges and agrees to be bound by the Conduct Rules of the National
Association of Securities Dealers, Inc. applicable to transactions in options, and further agrees
not to violate the position and exercise limits set forth therein.

     8. Other Provisions:

     (a) Right to Extend. Dealer may postpone any Exercise Date or Settlement Date or any other
date of valuation or delivery by Dealer, with respect to some or all of the relevant Options (in
which event the Calculation Agent shall make appropriate commercially reasonable adjustments to the
Delivery Obligation), if Dealer determines, in its reasonable discretion, that such extension is
reasonably necessary or appropriate to preserve Dealer’s hedging or hedge unwind activity hereunder
in light of existing liquidity conditions in the cash market, the stock borrow market or other
relevant market or to enable Dealer to effect purchases of Shares in connection with its hedging,
hedge unwind or settlement activity hereunder in a manner that would, if Dealer were Counterparty
or an affiliated purchaser of Counterparty, be in compliance with applicable legal, regulatory or
self-regulatory requirements, or with related policies and procedures applicable to Dealer.

     (b) Additional Termination Events. The occurrence of (i) an “Event of Default” with respect
to Counterparty under the terms of the Convertible Securities as set forth in the Indenture as
described in the Prospectus Supplement under “Description of Notes — Events of Default,” or (ii) an
Amendment Event shall be an Additional Termination Event with respect to which the Transaction is
the sole Affected Transaction and Counterparty is the sole Affected Party, and Dealer shall be the
party entitled to designate an Early Termination Date pursuant to Section 6(b) of the Agreement and
to determine the amount payable pursuant to Section 6(e) of the Agreement.

     “Amendment Event” means that Counterparty amends, modifies, supplements or obtains a waiver in
respect of any term of the Indenture or the Convertible Securities governing the principal amount,
coupon, maturity, a repurchase obligation of Counterparty, a redemption right of Counterparty, any
term relating to conversion of the Convertible Securities (including changes to the conversion
price, conversion settlement dates or conversion conditions), or any term that would require
consent of the holders of not less than 100% of the principal amount of the Convertible Securities
to amend, in each case without the prior consent of Dealer.

     (c) Alternative Calculations and Payment on Early Termination and on Certain Extraordinary
Events. If Dealer shall owe Counterparty any amount pursuant to “Consequences of Merger Events”
above or Sections 12.6, 12.7 or 12.9 of the Equity Definitions (except in the event of an
Insolvency, a Nationalization or a Merger Event, in each case, in which the consideration or
proceeds to be paid to holders of Shares consists solely of cash) or pursuant to Section 6(d)(ii)
of the Agreement (except in the event of an Event of Default in which Counterparty is the
Defaulting Party or a Termination Event in which Counterparty is the Affected Party, that resulted
from an event or events within Counterparty’s control) (a “Payment Obligation”), Counterparty shall
have the right, in its sole discretion, to require Dealer to satisfy any such Payment Obligation by
the Share Termination Alternative (as defined below) by giving irrevocable telephonic notice to
Dealer, confirmed in writing within one Scheduled Trading Day, between the hours of 8:00 A.M. and
4:00 P.M. New York City time on the relevant merger date, Announcement Date, Early Termination Date
or date of cancellation or termination in respect of an Additional Disruption Event, as applicable
(“Notice of Share Termination”); provided that if Counterparty does not require Dealer to satisfy
its Payment Obligation by the Share Termination Alternative, Dealer shall have the right, in its
sole discretion, to elect to satisfy its Payment Obligation by the Share Termination Alternative,
notwithstanding Counterparty’s failure to elect or election to the contrary. Upon such Notice of
Share Termination or such Dealer election, the following provisions shall apply on the Scheduled
Trading Day immediately following the relevant merger date, Announcement Date,

15

 

Early Termination Date or date of cancellation or termination in respect of an Additional
Disruption Event, as applicable:

	 	 	 
	Share Termination Alternative:

	 	Applicable and means that Dealer shall
deliver to Counterparty the Share
Termination Delivery Property on the date
on which the Payment Obligation would
otherwise be due pursuant to
“Consequences of Merger Events” above,
Section 12.7 or 12.9 of the Equity
Definitions or Section 6(d)(ii) of the
Agreement, as applicable, or such later
date as the Calculation Agent may
reasonably determine (the “Share
Termination Payment Date”), in
satisfaction of the Payment Obligation.
	 
	 	 
	Share Termination Delivery
	 	 
	Property:

	 	A number of Share Termination Delivery
Units, as calculated by the Calculation
Agent, equal to the Payment Obligation
divided by the Share Termination Unit
Price. The Calculation Agent shall
adjust the Share Termination Delivery
Property by replacing any fractional
portion of a security therein with an
amount of cash equal to the value of such
fractional security based on the values
used to calculate the Share Termination
Unit Price.
	 
	 	 
	Share Termination Unit Price:

	 	The value of property contained in one
Share Termination Delivery Unit on the
date such Share Termination Delivery
Units are to be delivered as Share
Termination Delivery Property, as
determined by the Calculation Agent in
its discretion by commercially reasonable
means and notified by the Calculation
Agent to Dealer at the time of
notification of the Payment Obligation.
	 
	 	 
	Share Termination Delivery Unit:

	 	In the case of a Termination Event, Event
of Default, Delisting or Additional
Disruption Event, one Share or, in the
case of an Insolvency, Nationalization or
Merger Event, a unit consisting of the
number or amount of each type of property
received by a holder of one Share
(without consideration of any requirement
to pay cash or other consideration in
lieu of fractional amounts of any
securities) in such Insolvency,
Nationalization or Merger Event. If such
Insolvency, Nationalization or Merger
Event involves a choice of consideration
to be received by holders, such holder
shall be deemed to have elected to
receive the maximum possible amount of
cash.
	 
	 	 
	Failure to Deliver:

	 	Applicable
	 
	 	 
	Other applicable provisions:

	 	If Share Termination Alternative is
applicable, the provisions of Sections
9.8, 9.9, 9.10, 9.11 (except that the
Representation and Agreement contained in
Section 9.11 of the Equity Definitions
shall be modified by excluding any
representations therein relating to
restrictions, obligations, limitations or
requirements under applicable securities
laws arising as a result of the fact that
Counterparty is the Issuer of the Shares)
and 9.12 of the Equity Definitions will
be applicable as if “Physical Settlement”
applied to the Transaction, except that
all references to “Shares” shall be read
as references to “Share Termination
Delivery Units.”

     (d) Disposition of Hedge Shares. Counterparty hereby agrees that if, in the good faith
reasonable judgment of Dealer or Counterparty, based on the advice of counsel, the Shares (the
“Hedge Shares”) acquired by Dealer for the purpose of hedging its obligations pursuant to the
Transaction cannot be sold in the U.S. public market by Dealer without registration under the
Securities Act, Counterparty shall, at its election within two Exchange Business Days after a
party’s written notice to the other party of such judgment: (i) in order to allow Dealer to sell
the Hedge Shares in a registered offering, make available to Dealer an effective registration
statement under the Securities Act to cover the resale of such Hedge

16

 

Shares and (A) enter into an agreement, in form and substance satisfactory to Dealer,
substantially in the form of an underwriting agreement for underwritten follow-on offerings of
equity securities of companies of comparable size, maturity and lines of business, (B) provide
accountant’s “comfort” letters in customary form for underwritten follow-on offerings of equity
securities, (C) provide disclosure opinions of nationally recognized outside counsel to
Counterparty as are customarily requested in connection with underwritten follow-on offerings of
equity securities of companies of comparable size, maturity and lines of business, (D) provide
other customary opinions, certificates and closing documents customary in form for underwritten
follow-on offerings of equity securities of companies of comparable size, maturity and lines of
business and (E) afford Dealer a reasonable opportunity to conduct a “due diligence” investigation
with respect to Counterparty customary in scope for underwritten follow-on offerings of equity
securities of companies of comparable size, maturity and lines of business; provided, however, that
if Dealer, in its sole commercially reasonable discretion, is not satisfied with access to due
diligence materials, the results of its due diligence investigation, or the procedures and
documentation for the registered offering referred to above, then clause (ii) or clause (iii) of
this Section 8(d) shall apply at the election of Counterparty, provided that with respect to such
registered offering Dealer has given the Counterparty reasonable notice of its determination and
provided the Counterparty with reasonable opportunity to satisfy Dealer’s concerns; (ii) in order
to allow Dealer to sell the Hedge Shares in a private placement, enter into a private placement
agreement substantially similar to private placement purchase agreements customary for private
placements of equity securities of companies of comparable size, maturity and lines of business, in
form and substance reasonably satisfactory to Dealer, including customary representations,
covenants, blue sky and other governmental filings and/or registrations, indemnities to Dealer, due
diligence rights (for Dealer or any designated buyer of the Hedge Shares from Dealer), opinions and
certificates and such other documentation as is customary for private placements agreements, all
reasonably acceptable to Dealer (in which case, the Calculation Agent shall make any adjustments to
the terms of the Transaction that are necessary, in its reasonable judgment, to compensate Dealer
for any discount from the public market price of the Shares incurred on the sale of Hedge Shares in
a private placement); or (iii) purchase the Hedge Shares from Dealer at the VWAP Price on such
Exchange Business Days, and in the amounts, requested by Dealer. For the avoidance of doubt,
unless the Counterparty elects to repurchase the Hedge Shares pursuant to clause (iii) of this
Section 8(d), nothing in this Confirmation shall be interpreted as requiring the Counterparty to
repurchase the Hedge Shares and under no circumstances shall the Counterparty be required to
repurchase the Hedge Shares. “VWAP Price” means, on any Exchange Business Day, the per Share
volume-weighted average price as displayed under the heading “Bloomberg VWAP” on Bloomberg Screen
BWA.N <equity> AQR (or any successor thereto) in respect of the period from 9:30 a.m. to 4:00
p.m. (New York City time) on such Exchange Business Day (or if such volume-weighted average price
is unavailable, the market value of one Share on such Exchange Business Day, as determined by the
Calculation Agent using a volume-weighted method).

     (e) Repurchase and Conversion Rate Adjustment Notices. Counterparty shall, at least two
Exchange Business Days prior to any day on which Counterparty effects any repurchase of Shares or
consummates or otherwise engages in any transaction or event (a “Conversion Rate Adjustment Event”)
that could reasonably be expected to lead to an increase in the Conversion Rate, give Dealer a
written notice of such repurchase or Conversion Rate Adjustment Event (a “Repurchase Notice”) on
such day if, following such repurchase or Conversion Rate Adjustment Event, the Notice Percentage
would reasonably be expected to be greater by 0.5% than the Notice Percentage included in the
immediately preceding Repurchase Notice (or, in the case of the first such Repurchase Notice,
greater than the Notice Percentage as of the date hereof). The “Notice Percentage” as of any day
is the fraction, expressed as a percentage, the numerator of which is the number of Shares
underlying all Convertible Securities outstanding on such day and the denominator of which is the
number of Shares outstanding on such day. In the event that Counterparty fails to provide Dealer
with a Repurchase Notice on the day and in the manner specified in this Section 8(e) then, to the
extent permitted by applicable law, Counterparty agrees to indemnify and hold harmless Dealer, its
affiliates and their respective directors, officers, employees, agents and controlling persons
(Dealer and each such person being an “Indemnified Party”) from and against any and all losses,
claims, damages and liabilities (or actions in respect thereof), joint or several, to which such
Indemnified Party is subject under applicable securities laws, including without limitation,
Section 16 of the Exchange Act or under any state or federal law, regulation or regulatory order,
as a result of such failure. If for any reason the foregoing indemnification is unavailable to any
Indemnified Party or insufficient to hold

17

 

harmless any Indemnified Party, then Counterparty shall contribute, to the maximum extent
permitted by law, to the amount paid or payable by the Indemnified Party as a result of such loss,
claim, damage or liability. In addition, Counterparty will reimburse any Indemnified Party for any
reasonable expenses (including reasonable counsel fees and expenses) as they are incurred (after
notice to Counterparty) in connection with the investigation of, preparation for or defense or
settlement of any pending or threatened claim or any action, suit or proceeding arising therefrom,
whether or not such Indemnified Party is a party thereto and whether or not such claim, action,
suit or proceeding is initiated or brought by or on behalf of Counterparty. This indemnity shall
survive the completion of the Transaction contemplated by this Confirmation and any assignment and
delegation of the Transaction made pursuant to this Confirmation or the Agreement shall inure to
the benefit of any permitted assignee of Dealer.

     (f) Transfer and Assignment. Either party may transfer any of its rights or obligations under
the Transaction with the prior written consent of the non-transferring party, such consent not to
be unreasonably withheld or delayed; provided that Dealer may transfer or assign without any
consent of Counterparty its rights and obligations hereunder, in whole or in part, to any person,
or any person whose obligations would be guaranteed by a person, in either case, of credit quality
equivalent to Dealer’s (or its guarantor’s), but in no event with a rating for its long term,
unsecured and unsubordinated indebtedness of less than A- by Standard and Poor’s Ratings Services
or its successor (“S&P”), and less than A3 by Moody’s Investors Service, Inc. or its successor
(“Moody’s”), or, if either S&P or Moody’s ceases to rate such debt, less than an equivalent rating
by a substitute agency mutually agreed by Counterparty and Dealer. Dealer shall as soon as
reasonably practicable notify Counterparty of any such transfer or assignment. If at any time at
which (1) the Equity Percentage exceeds 8.0% or (2) Dealer, Dealer Group (as defined below) or any
person whose ownership position would be aggregated with that of Dealer or Dealer Group (Dealer,
Dealer Group or any such person, a “Dealer Person”) under Section 203 of the Delaware General
Corporation Law (the “DGCL Takeover Statute”) or other federal, state or local regulations or
regulatory orders applicable to ownership of Shares (“Applicable Laws”), owns, beneficially owns,
constructively owns, controls, holds the power to vote or otherwise meets a relevant definition of
ownership in excess of a number of Shares equal to (x) the number of Shares that would give rise to
reporting or registration obligations or other requirements (including obtaining prior approval by
a state or federal regulator) of a Dealer Person under Applicable Laws (including, without
limitation, “interested stockholder” or “acquiring person” status under the DGCL Takeover Statute)
and with respect to which such requirements have not been met or the relevant approval has not been
received minus (y) 1% of the number of Shares outstanding on the date of determination (either such
condition described in clause (1) or (2), an “Excess Ownership Position”), Dealer, in its
discretion, is unable to effect a transfer or assignment to a third party after its commercially
reasonable efforts on pricing terms and within a time period reasonably acceptable to Dealer such
that an Excess Ownership Position no longer exists, Dealer may designate any Scheduled Trading Day
as an Early Termination Date with respect to a portion (the “Terminated Portion”) of the
Transaction, such that an Equity Ownership Position no longer exists following such partial
termination. In the event that Dealer so designates an Early Termination Date with respect to a
portion of the Transaction, a payment shall be made pursuant to Section 6 of the Agreement and
Section 8(c) of this Confirmation as if (i) an Early Termination Date had been designated in
respect of a Transaction having terms identical to the Terminated Portion of the Transaction, (ii)
Counterparty were the sole Affected Party with respect to such partial termination, (iii) such
portion of the Transaction were the only Terminated Transaction and (iv) Dealer were the party
entitled to designate an Early Termination Date pursuant to Section 6(b) of the Agreement and to
determine the amount payable pursuant to Section 6(e) of the Agreement. The “Equity Percentage” as
of any day is the fraction, expressed as a percentage, (A) the numerator of which is the number of
Shares that Dealer and any of its affiliates subject to aggregation with Dealer for purposes of the
“beneficial ownership” test under Section 13 of the Exchange Act and all persons who may form a
“group” (within the meaning of Rule 13d-5(b)(1) under the Exchange Act) with Dealer (collectively,
“Dealer Group”) “beneficially own” (within the meaning of Section 13 of the Exchange Act) without
duplication on such day and (B) the denominator of which is the number of Shares outstanding on
such day. In the case of a transfer or assignment by Counterparty of its rights and obligations
hereunder and under the Agreement, in whole or in part (any such Options so transferred or
assigned, the “Transfer Options”), to any party, withholding of such consent by Dealer shall not be
considered unreasonable if such transfer or assignment does not meet the following reasonable
conditions that Dealer may impose:

18

 

     (A) With respect to any Transfer Options, Counterparty shall not be released from its
notice and indemnification obligations pursuant to Section 8(e) or any obligations under
Section 2 (regarding Extraordinary Events) or 8(d) of this Confirmation;

     (B) Any Transfer Options shall only be transferred or assigned to a third party that
is a U.S. person (as defined in the Internal Revenue Code of 1986, as amended);

     (C) Such transfer or assignment shall be effected on terms, including any reasonable
undertakings by such third party (including, but not limited to, undertakings with respect
to compliance with applicable securities laws in a manner that, in the reasonable judgment
of Dealer, will not expose Dealer to material risks under applicable securities laws) and
execution of any documentation and delivery of legal opinions with respect to securities
laws and other matters by such third party and Counterparty as are requested and reasonably
satisfactory to Dealer;

     (D) Dealer will not, as a result of such transfer and assignment, be required to pay
the transferee on any payment date an amount under Section 2(d)(i)(4) of the Agreement
greater than an amount that Dealer would have been required to pay to Counterparty in the
absence of such transfer and assignment;

     (E) An Event of Default, Potential Event of Default or Termination Event will not
occur as a result of such transfer and assignment;

     (F) Without limiting the generality of clause (B), Counterparty shall have caused the
transferee to make such Payee Tax Representations and to provide such tax documentation as
may be reasonably requested by Dealer to permit Dealer to determine that results described
in clauses (D) and (E) will not occur upon or after such transfer and assignment; and

     (G) Counterparty shall be responsible for all reasonable costs and expenses, including
reasonable counsel fees, incurred by Dealer in connection with such transfer or assignment.

     (g) Staggered Settlement. Dealer may, by notice to Counterparty on or prior to any Settlement
Date (a “Nominal Settlement Date”), elect to deliver the Shares on two or more dates (each, a
“Staggered Settlement Date”) or at two or more times on the Nominal Settlement Date as follows:

     (i) in such notice, Dealer will specify to Counterparty the related Staggered
Settlement Dates (each of which will be on or prior to such Nominal Settlement Date, but
not prior to the beginning of the related Cash Settlement Averaging Period (as modified
herein)) or delivery times and how it will allocate the Shares it is required to deliver
under “Delivery Obligation” (above) among the Staggered Settlement Dates or delivery times;
and

     (ii) the aggregate number of Shares that Dealer will deliver to Counterparty hereunder
on all such Staggered Settlement Dates and delivery times will equal the number of Shares
that Dealer would otherwise be required to deliver on such Nominal Settlement Date.

     (h) Disclosure. Effective from the date of commencement of discussions concerning the
Transaction, Counterparty and each of its employees, representatives, or other agents may disclose
to any and all persons, without limitation of any kind, the tax treatment and tax structure of the
Transaction and all materials of any kind (including opinions or other tax analyses) that are
provided to Counterparty relating to such tax treatment and tax structure.

     (i) No Netting and Set-off. The provisions of Section 2(c) of the Agreement shall not apply
to the Transaction. Each party waives any and all rights it may have to set-off payment
obligations it owes to the other party under the Transaction against any payment obligations owed
to it by the other party, whether arising under the Agreement, under any other agreement between
parties hereto, by operation of law or otherwise.

     (j) Equity Rights. Dealer acknowledges and agrees that this Confirmation is not intended to
convey to it rights with respect to the Transaction that are senior to the claims of common
stockholders in the event of Counterparty’s bankruptcy. For the avoidance of doubt, the parties
agree that the preceding sentence shall not apply at any time other than during Counterparty’s
bankruptcy to any claim arising as a result of a breach by Counterparty of any of its obligations
under this Confirmation or the Agreement.

19

 

     (k) Early Unwind. In the event the sale by Counterparty of the Convertible Securities is not
consummated pursuant to the Underwriting Agreement for any reason by the close of business in New
York on April 9, 2009 (or such later date as agreed upon by the parties, which in no event shall be
later than five business days after April 9, 2009) (April 9, 2009 or such later date being the
“Early Unwind Date”), the Transaction shall automatically terminate (the “Early Unwind”) on the
Early Unwind Date and the Transaction and all of the respective rights and obligations of Dealer
and Counterparty hereunder shall be cancelled and terminated and Counterparty shall pay to Dealer,
other than in cases involving a breach of the Underwriting Agreement by the underwriters, an amount
in cash equal to the aggregate amount of reasonable costs and expenses relating to the unwinding of
Dealer’s hedging activities in respect of the Transaction (including market losses incurred in
reselling any Shares purchased by Dealer or its affiliates in connection with such hedging
activities, unless Counterparty agrees to purchase any such Shares at the cost at which Dealer
purchased such Shares). Following such termination and cancellation and payment, each party shall
be released and discharged by the other party from, and agrees not to make any claim against the
other party with respect to, any obligations or liabilities of either party arising out of, and to
be performed in connection with, the Transaction either prior to or after the Early Unwind Date.
Dealer and Counterparty represent and acknowledge to the other that upon an Early Unwind and
following the payment referred to above, all obligations with respect to the Transaction shall be
deemed fully and finally discharged.

     (l) Payments by Counterparty upon Early Termination. The parties hereby agree that,
notwithstanding anything to the contrary herein, in the Definitions or in the Agreement, following
the payment of the Premium and the Additional Premium, if any, in the event that an Early
Termination Date (whether as a result of an Event of Default or an Amendment Event or a Termination
Event) occurs or is designated with respect to the Transaction or the Transaction is terminated or
cancelled pursuant to Article 12 of the Equity Definitions and, as a result, Counterparty would owe
to Dealer an amount calculated under Section 6(e) of the Agreement or Article 12 of the Equity
Definitions, such amount shall be deemed to be zero.

     (m) Waiver of Trial by Jury. EACH OF COUNTERPARTY AND DEALER HEREBY IRREVOCABLY WAIVES (ON
ITS OWN BEHALF AND, TO THE EXTENT PERMITTED BY APPLICABLE LAW, ON BEHALF OF ITS STOCKHOLDERS) ALL
RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED ON CONTRACT, TORT
OR OTHERWISE) ARISING OUT OF OR RELATING TO THE TRANSACTION OR THE ACTIONS OF DEALER OR ITS
AFFILIATES IN THE NEGOTIATION, PERFORMANCE OR ENFORCEMENT HEREOF.

     (n) Governing Law; Jurisdiction. THE AGREEMENT, THIS CONFIRMATION AND ALL MATTERS ARISING IN
CONNECTION WITH THE AGREEMENT AND THIS CONFIRMATION SHALL BE GOVERNED BY, AND CONSTRUED AND
ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK (WITHOUT REFERENCE TO ITS CHOICE OF
LAW DOCTRINE, OTHER THAN TITLE 14 OF THE NEW YORK GENERAL OBLIGATIONS LAW). THE PARTIES HERETO
IRREVOCABLY SUBMIT TO THE EXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK AND THE
UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK IN CONNECTION WITH ALL MATTERS
RELATING HERETO AND WAIVE ANY OBJECTION TO THE LAYING OF VENUE IN, AND ANY CLAIM OF INCONVENIENT
FORUM WITH RESPECT TO, THESE COURTS.

     (o) Amendment. This Confirmation and the Agreement may not be modified, amended or
supplemented, except in a written instrument signed by Counterparty and Dealer.

     (p) Counterparts. This Confirmation may be executed in several counterparts, each of which
shall be deemed an original but all of which together shall constitute one and the same instrument.

     (q) Designation by Dealer. Notwithstanding any other provision in this Confirmation to the
contrary requiring or allowing Dealer to purchase, sell, receive or deliver any Shares or other
securities to or from Counterparty, Dealer may designate any of its affiliates to purchase, sell,
receive or deliver such Shares or other securities and otherwise to perform Dealer’s obligations in
respect of the Transaction and any such designee may assume such obligations. Dealer shall be
discharged of its obligations to Counterparty to the extent of any such performance.

20

 

     (r) Delivery of Cash. For the avoidance of doubt, nothing in this Confirmation shall be
interpreted as requiring the Counterparty to deliver cash in respect of the settlement of the
Transaction, except in circumstances where the required cash settlement thereof is permitted for
classification of the contract as equity by EITF 00-19 as in effect on the relevant Settlement
Date.

     (s) Credit Support Provider and Credit Support Document. Morgan Stanley shall be a Credit
Support Provider with respect to Dealer and the guarantee of Dealer’s obligations hereunder by
Morgan Stanley shall be a Credit Support Document with respect to Dealer.

     (t) Agent of Dealer. Morgan Stanley & Co. Incorporated (“MS&CO”) is acting as agent for both
parties but does not guarantee the performance of either party. Neither Dealer nor Counterparty
shall contact the other with respect to any matter relating to the Transaction without the direct
involvement of MS&CO; (ii) MS&CO, Dealer and Counterparty each hereby acknowledges that any
transactions by Dealer or MS&CO with respect to Shares will be undertaken by Dealer as principal
for its own account; (iii) all of the actions to be taken by Dealer and MS&CO in connection with
the Transaction shall be taken by Dealer or MS&CO independently and without any advance or
subsequent consultation with Counterparty; and (iv) MS&CO is hereby authorized to act as agent for
Counterparty only to the extent required to satisfy the requirements of Rule 15a-6 under the
Exchange Act in respect of the Transaction.

21

 

     Counterparty hereby agrees (a) to check this Confirmation carefully and immediately upon
receipt so that errors or discrepancies can be promptly identified and rectified and (b) to confirm
that the foregoing (in the exact form provided by Dealer) correctly sets forth the terms of the
agreement between Dealer and Counterparty with respect to the Transaction, by manually signing this
Confirmation or this page hereof as evidence of agreement to such terms and providing the other
information requested herein and immediately returning an executed copy to us.

	 	 	 	 	 
	 	Yours faithfully,

MORGAN STANLEY & CO. INCORPORATED, 

as agent

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	MORGAN STANLEY & CO. INTERNATIONAL PLC

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	Agreed and Accepted By:	 	 
	 
	 	 	 	 
	BORGWARNER INC.	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Name:
	 	 
	 

	 	Title:	 	 

1

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