Document:

EX-10.3 Q1

Exhibit 10.3
	
			
	
	 
	Visteon Asia Pacific Inc.                                                 9th Floor, Modern Logistic Building
448 Hongcao Road 
Shanghai, 200233
People’s Republic of China

Phone:  86-21-6192-9900

Fax.  86-21-6145-5301

P.R. China Employment Agreement

This employment agreement (this “Agreement”) is entered into by and between Visteon Asia Pacific Inc. (VAPI, or the “PRC Employer”) and Robert Charles Pallash ("Employee") on December 12, 2011.

This Agreement is concurrent with the employment letter with mutual understanding of employment terms and conditions between Visteon Engineering Services Ltd (VES Ltd) ("Overseas Employer") and the Employee on December 12, 2011 (the “Overseas Agreement”).

Employee's duties and responsibilities included in this Agreement have been distinct from the duties and responsibilities included in the Overseas Agreement. 

Employee's position is Managing Director and Chairman of the Board, VAPI with specified leadership responsibilities in VAPI, which is a PRC company located in Shanghai, PRC.  In this capacity, Employee reports to Don Stebbins, Chairman and Chief Executive Officer, Visteon Corporation.

Employee's PRC employment begins on January 1, 2011 and lasts for a term of two (2) Years.  The terms and conditions outlined in this Agreement are only relating to, and are fixed for, the duration of Employee's PRC employment.

Employee's compensation and benefits package for PRC employment will be designed to provide a level of income and benefits in consideration of Employee's duties and responsibilities for VAPI only.   

The PRC laws and policies will apply to this Agreement.

1.    Duties and Responsibilities 

Employee's remuneration for the following duties and responsibilities for this Agreement will be paid and borne by PRC Employer.  Employee’s job performance in relation to the following duties and responsibilities will be evaluated by PRC Employer on a regular basis against established performance objectives during the term of this Agreement.  Employee’s compensation is subject to adjustments based on the employee’s China role and performance.  

Duties and Responsibilities

		
	•
	Executive leadership for China and Asia Pacific Marketing and Customer functions

		
	•
	Management oversight for AP regional headquarters business and functional activities 

		
	•
	Representative of the Board of Directors of VAPI and other Visteon Chinese entities

		
	•
	Identification of China and Asia Pacific strategic growth opportunities

		
	•
	Development of multinational and Chinese Customer and Partner relationships 

		
	•
	Sponsorship for local leadership talent development and succession planning

2.    Compensation

Employee’s PRC compensation is paid through PRC Employer's payroll.

2.1    Housing Allowance

PRC Employer pays for Employee's housing in the form of a housing allowance to cover up 100% of the cost of housing and fees, currently at RMB 91,000.0 per month and basic utilities of approximately RMB 3,500.0 per month.

2.2    Home Leave Allowance

PRC Employer provides a home leave allowance for airfares for the Employee and accompanying family members to their home country each year during the assignment in accordance with published travel guidelines. The Employee can also request reimbursement of up to 30 day car rental for one vehicle per leave.  For 2011, the Home Leave Allowance is capped at RMB 110,000.0.

2.4    Rest and Relaxation (R&R) Allowance

PRC Employer provides a rest and relaxation allowance for the Employee and accompanying family members each year during the assignment.  The R&R Leave will include five (5) business days off.  For 2011, the R&R Allowance is capped at RMB 224,000.0.

2.5    VIP Membership and Fees

PRC Employer provides a VIP Airport Membership Fee of RMB 22,000.0 per year during the assignment.

3.    Travel at the beginning and end of Employee's PRC employment

PRC Employer will fund the costs associated with Employee's travel at the beginning and end of his PRC employment in accordance with published travel guidelines.  

4.    Vacation, Working Hours, and Public Holidays

Employee’s Annual Leave eligibility will be in accordance with Overseas Employer's leave policy (currently 26 days per annum).  Working hours and public holiday will be observed in accordance with local Chinese custom and laws.

5.    Personal Taxation

While under this employment agreement, Employee will be tax equalized and responsible for any tax liability up to the amount of the home country tax liability calculated on the base salary and any company incentive compensation.  PRC Employer is responsible for Employee's PRC IIT resulting from Employee's working in the PRC.

6.    Termination of the PRC Agreement

This Agreement may be modified or terminated at any time as a result of a change in business needs.   In that event, PRC Employer may amend this agreement to modify or expand Employee's responsibilities at any time in order to accommodate the need of PRC Employer.

Notwithstanding the foregoing, the termination, modification of this Agreement shall not reduce, mitigate or prejudice Employee’s rights and benefits under the Overseas Agreement with VES Ltd and applicable global 

policies of Visteon Corporation.

7.    Repatriation

7.1    Return Shipment of Household Goods and Personal Effects

The PRC Employer will provide a 40” container (or additional container upon request and approval) and an air shipment of up to 726 pounds, including 60 days in-transit storage.   

7.2    Return Settling-In Allowance

The PRC Employer will provide a Settling-In allowance of RMB 65,000 net of tax to cover most expenses associated with the repatriation.

7.3    Return Travel Expenses

The PRC Employer will reimburse travel costs in accordance with the Company’s travel guidelines for the Employee and accompanying family members via the most direct route.  

7.4    Temporary Living

The PRC Employer will cover up to 60 days in total of interim living expenses for the Employee and accompanying family, to be utilized in either the home or host locations.

7.5    Tax Services

Visteon will support the first (1) full year home and host country individual income tax returns following repatriation. The returns will be prepared by Deloitte.  

This employment agreement has been drawn up in two copies which have been distributed to Robert Charles Pallash and Visteon Asia Pacific Inc (VAPI), respectively.

Signed:      /s/ R. C. Pallash                                                 Signed:   /s/ Lian Li            

Print Name:   R. C. Pallash                                                 Print Name:   Lian LiEX-10.5 Q1

Exhibit 10.5
FOURTH AMENDMENT TO REVOLVING LOAN CREDIT AGREEMENT 
This FOURTH AMENDMENT TO REVOLVING LOAN CREDIT AGREEMENT (this “Amendment”), dated as of April 3, 2012, by and among VISTEON CORPORATION, a Delaware corporation (“Visteon”), and certain of its domestic subsidiaries signatory hereto, as borrowers (collectively, referred to herein as the “Borrowers” and each, individually, as a “Borrower”); the other Credit Parties signatory hereto; MORGAN STANLEY SENIOR FUNDING, INC. (“MSSF”), as administrative agent for the Lenders (together, with any permitted successor in such capacity, “Agent”); MSSF and Bank of America, N.A., as co-collateral agents for the Lenders (the “Co-Collateral Agents”); and the Lenders and L/C Issuers signatory hereto.
W I T N E S S E T H:

WHEREAS, the Borrowers, the other Credit Parties signatory thereto, the financial institutions party thereto as “Lenders” (the “Lenders”), Agent and the other agents party thereto are parties to that certain Revolving Loan Credit Agreement, dated as of October 1, 2010, as amended by that certain First Amendment to Revolving Loan Credit Agreement, dated as of January 27, 2011, as amended by that certain Second Amendment to Revolving Loan Credit Agreement, dated as of April 6, 2011, and as amended by that certain Third Amendment to Revolving Loan Credit Agreement, dated as of June 15, 2011 (as may be further amended, restated, supplemented or otherwise modified from time to time prior to the date hereof, the “Credit Agreement”); and
WHEREAS, the Borrowers have requested that certain terms and conditions of the Credit Agreement be amended, and the Requisite Lenders and Agent have agreed to the requested amendments on the terms and conditions set forth herein;
NOW, THEREFORE, in consideration of the premises and of the mutual covenants and agreements contained herein, the parties hereto hereby agree that all capitalized terms used but not defined herein shall have the meanings ascribed to such terms in the Credit Agreement, and further agree as follows:
Section 1.    Amendments to the Credit Agreement.  
(a)    Section 5.2 of the Credit Agreement, “Collateral Reporting”, is hereby amended and modified by deleting subsection (e) in its entirety and inserting the following in lieu thereof:
“(e)    Borrowers shall pay all reasonable fees incurred by Co-Collateral Agents in connection with (i) Inventory and, to the extent included in the Borrowing Base, Real Estate and Aircraft appraisals (which will be FIRREA compliant with respect to Real Estate) on an annual basis (including one full appraisal and one “desk-top” appraisal, each on an annual basis) at the discretion of Agent and Co-Collateral Agents; provided, that notwithstanding the foregoing, Co-Collateral Agents may perform physical appraisals and collateral audits at any time during any Fiscal Year at its own expense; provided, further, that upon the occurrence and during the continuance of a Default or Event of Default or if Excess Availability is less than $50,000,000, Co-Collateral Agents may perform physical appraisals and collateral audits at any time and at Borrower’s reasonable expense without regard to the limits set forth above and (ii) two (2) field examinations per Fiscal Year; provided, if not more than $25,000,000 of Revolving Credit Advances have been outstanding at any time during the twelve (12) month period immediately prior to such date of determination, then field examinations shall be limited to one (1) field examination per Fiscal Year; and”
(b)    Section 7.8 of the Credit Agreement, “Sale of Stock and Assets”, is hereby amended and modified by (i) deleting the “and” at the end of subsection (u), (ii) deleting the “.” at the end of subsection (v) and inserting “; and” in lieu thereof and (iii) inserting the following new subsection (w) at the end of such Section:
“(w)    Dispositions of designated assets listed on Schedule 7.8(w); provided that the Borrowers shall deliver to Agent prior to such Disposition a Borrowing Base Certificate giving Pro Forma Effect to such Disposition evidencing whether such Disposition results in an Overadvance; provided, if an Overadvance occurs after giving effect to such Disposition, the Borrowers shall immediately repay such Overadvance in accordance with Section 2.3(b)(i).”

(c)    Section 7.12 of the Credit Agreement, “Sale-Leaseback Transactions”, is hereby amended and modified by deleting subsection (b) in its entirety and inserting the following in lieu thereof:
“(b)    Sale-Leaseback Transactions for fair value (as determined at the time of the consummation thereof in good faith by the applicable Credit Party or Restricted Subsidiary) with respect to (i) the “Grace Lake” facility located at One Village Center Drive, Van Buren Township, MI 48111 or (ii) other property not to exceed $50,000,000 in the aggregate, in each case, so long as (A) eighty percent (80%) of the consideration received by such Credit Party or Restricted Subsidiary from such Sale-Leaseback Transaction is in the form of cash and (B) the Net Cash Proceeds from any such Sale-Leaseback Transaction are applied to repay the Obligations in accordance with Section 2.3(b),”
(d)    the Credit Agreement is hereby amended and modified by inserting Schedule (7.8(w)), as attached hereto as Exhibit A, as a new schedule to the Credit Agreement.
Section 2.        Representations and Warranties.  Each Credit Party represents and warrants as follows:
(a)    The execution, delivery and performance by each Credit Party of this Amendment are within such Person’s powers, have been duly authorized by all necessary corporate, limited liability company or limited partnership action, and do not (i) require any consent or approval of any of the holders of the Stock of any Credit Party except for such consents and approvals which have been obtained and remain in full force and effect; (ii) contravene the charter, bylaws or partnership or operating agreement, as applicable, of any Credit Party; (iii) violate any material applicable law or regulation or any order or decree of any court or Governmental Authority; (iv) conflict with or result in the breach or termination of, constitute a default under or accelerate or permit the acceleration of any performance required by, any material indenture, mortgage, deed of trust, material lease, loan agreement or other instrument to which such Person is a party or by which such Person or any of its property is bound; or (v) result in the creation or imposition of any Lien upon any of the property of such Person other than those in favor of Agent, on behalf of itself and Lenders, pursuant to the Loan Documents;
(b)    No authorization or approval of any Governmental Authority or other Person is required for the due execution, delivery or performance by any Credit Party of this Amendment and each other Loan Document contemplated hereby to which it is or is to be a party, except authorizations or approvals that have been obtained and notices or filings that have been made;
(c)    This Amendment and each other document required hereunder to be delivered by any Credit Party has been duly executed and delivered by each such Person party thereto, and constitutes the legal, valid and binding obligation of each such Person, enforceable against such Person in accordance with the respective terms of such document, except, in each case, as the enforceability thereof may be limited by bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or other similar laws of general application affecting the enforcement of creditors’ rights or by general principles of equity (regardless of whether enforcement is being sought in equity or at law);
(d)    The representations and warranties contained in Section 4 of the Credit Agreement and in each of the other Loan Documents are true and correct in all material respects (with respect to any representation or warranty that is not otherwise qualified as to materiality) on and as of the date hereof as though made on and as of such date; provided, however, representations and warranties which by their terms are applicable only to a specific date shall be deemed made only at and as of such date; and
(e)    Immediately after giving effect hereto, no event has occurred and is continuing which constitutes an Event of Default or would constitute an Event of Default but for the requirement that notice be given or time elapse or both.
Section 3.        Conditions Precedent to Effectiveness of this Amendment.  This Amendment shall be effective as of the date first set forth above (the “Fourth Amendment Effective Date”) when Agent shall have received, in form and substance satisfactory to it, each of the following:
(a)    this Amendment, duly executed by the Borrowers, the other Credit Parties identified on the signature pages hereto, Agent, the Co-Collateral Agents and the Requisite Lenders; 

(b)    reimbursement and payment of all of Agent’s costs and expenses incurred in connection with this Amendment in accordance with Section 12.3 of the Credit Agreement to the extent invoiced as of such date; and
(c)    the delivery of such other documents, instruments, and information as Agent may reasonably request.
Section 4.    Reference to and Effect on the Credit Agreement. Upon the effectiveness of this Amendment as set forth in Section 3 hereof, on and after the date hereof, each reference in the Credit Agreement to “this Agreement”, “hereunder”, “hereof”, “herein” or words of like import shall mean and be a reference to the Credit Agreement, and each reference in the other Loan Documents to the Credit Agreement shall mean and be a reference to the Credit Agreement.
Section 5.        Costs, Expenses and Taxes.  Subject to Section 12.3 of the Credit Agreement, the Borrowers agree, jointly and severally, to pay on demand all reasonable, out-of-pocket costs and expenses of Agent in connection with the preparation, execution and delivery of this Amendment and the other instruments and documents to be delivered hereunder (including, without limitation, the reasonable fees and expenses of counsel for Agent with respect thereto).
Section 6.        No Other Amendments.  Except as otherwise expressed herein, the execution, delivery and effectiveness of this Amendment shall not operate as a waiver of any right, power or remedy of the Agent, Co-Collateral Agent or the Lenders under the Credit Agreement, or any of the other Loan Documents, nor constitute a waiver of any provision of the Credit Agreement or any of the other Loan Documents.  Except for the amendments set forth herein, the text of all other Loan Documents shall remain unchanged and in full force and effect and the Credit Parties hereby ratify and confirm their respective obligations thereunder.  This Amendment shall not constitute a modification of the Credit Agreement or a course of dealing with Agent at variance with the Credit Agreement such as to require further notice by Agent to require strict compliance with the terms of the Credit Agreement and the other Loan Documents in the future, except as expressly set forth herein.  The Credit Parties acknowledge and expressly agree that the Agent, Co-Collateral Agent and the Lenders reserve the right to, and do in fact, require strict compliance with all terms and provisions of the Credit Agreement and the other Loan Documents (in each case as amended hereby).
Section 7.        Execution in Counterparts.  This Amendment may be executed in any number of counterparts, each of which when so executed and delivered shall be deemed to be an original and all of which taken together shall constitute but one and the same instrument. Delivery of a signature page hereto by facsimile transmission or other electronic transmission shall be as effective as delivery of a manually executed counterpart hereof.
Section 8.    Governing Law.  This Amendment shall be governed by, and construed in accordance with, the laws of the State of New York.
Section 9.    Final Agreement.  This Amendment represents the final agreement between the Borrowers, the other Credit Parties, Agent, Co-Collateral Agents and the Lenders as to the subject matter hereof and may not be contradicted by evidence of prior or contemporaneous oral agreements of the parties.  The Amendment shall constitute a Loan Document for all purposes.
Section 10.    Severability.  Wherever possible, each provision of this Amendment shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Amendment shall be prohibited by or invalid under applicable law, such provision shall be ineffective only to the extent of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions of this Amendment.
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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed by their respective officers thereunto duly authorized, as of the date first above written.

CREDIT PARTIES: 
 
VISTEON CORPORATION 

By:__/s/ Robert R. Krakowiak___
Name:  Robert R. Krakowiak
Title:  Vice-President & Treasurer
VC AVIATION SERVICES, LLC  

By:__/s/ Robert R. Krakowiak___
Name:  Robert R. Krakowiak
Title:    Treasurer
VISTEON ELECTRONICS CORPORATION 

 
By:__/s/ Robert R. Krakowiak___
Name:  Robert R. Krakowiak
Title:    Treasurer
VISTEON GLOBAL TECHNOLOGIES, INC. 

 
By:__/s/ Robert R. Krakowiak___
Name:  Robert R. Krakowiak
Title:    Treasurer
VISTEON GLOBAL TREASURY, INC. 

 
By:__/s/ Robert R. Krakowiak___
Name:  Robert R. Krakowiak
Title:    Vice-President

VISTEON SYSTEMS, LLC 

 
By:__/s/ Robert R. Krakowiak___
Name:  Robert R. Krakowiak
Title:    Treasurer
VISTEON INTERNATIONAL BUSINESS DEVELOPMENT, INC. 

 
By:__/s/ Robert R. Krakowiak___
Name:  Robert R. Krakowiak
Title:    Treasurer
VISTEON INTERNATIONAL HOLDINGS, INC.
By:__/s/ Robert R. Krakowiak___
Name:  Robert R. Krakowiak
Title:    Treasurer
VISTEON EUROPEAN HOLDINGS, INC.
By:__/s/ Robert R. Krakowiak___
Name:  Robert R. Krakowiak
Title:    Treasurer

AGENTS AND LENDERS: 
 
MORGAN STANLEY SENIOR FUNDING, INC., as Agent and Co-Collateral Agent
By: _/s/ Stephen B. King______
Name:  Stephen B. King
Title:    Vice President
MORGAN STANLEY BANK, N.A., as a Lender and L/C Issuer
By: __/s/ Chris Whelan__________
Name:  Chris Whelan
Title:    Authorized Signatory

BANK OF AMERICA, N.A., as Co-Collateral Agent and a Lender 
By: __/s/ John D. Whetstone_____
Name:  John D. Whetstone
Title:   Vice President

BARCLAYS Bank PLC, as a Lender
By: ___/s/ Gregory Fishbein_____
Name:  Gregory Fishbein
Title:  Assistant Vice President

THE BANK OF NOVA SCOTIA, as a Lender 
By: ____/s/ Kim Snyder__________
Name:  Kim Snyder
Title:   Director

RB International Finance (USA) LLC
F/K/A RZB FINANCE LLC, as a Lender
By: __ /s/ Peter Armieri_________________
Name:  Peter Armieri
Title:    Vice President

By:  /s/  Astrid Noebauer            
Name:  Astrid Noebauer
Title:  Group Vice President

SUMITOMO MITSUI BANKING CORPORATION, as a Lender
By: __/s/ Shuji Yabe_________
Name:  Shuji Yabe
Title:  Managing Director

COMERICA BANK, as a Lender
By: __/s/ Thomas VanderMeulen    
Name:  Thomas VanderMeulen
Title:    Vice President

CITIBANK, N.A., as a Lender
By: ___/s/ Brendan Mackay_________________
Name:  Brendan Mackay
Title:  

EXHIBIT A

Schedule (7.8(w))

Disposition of stock and assets related to the lighting product group, which are located primarily in the United States, China, Czech Republic, India, and Mexico.

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