Document:

EX-10G:COLLATERAL ASSIGNMENT SPLIT-DOLLAR INS AGMT

 

Exhibit 10-G

COLLATERAL ASSIGNMENT SPLIT-DOLLAR INSURANCE

AGREEMENT

THIS AMENDED and RESTATED AGREEMENT made this 1st day of January, 2002, by and
between Dana Corporation, a Virginia Corporation having its principal place of
business in Toledo, Ohio (hereinafter the “Corporation”), and Joseph M.
Magliochetti, (hereinafter the “Employee”).

W I T N E S S E T H

WHEREAS, the Employee is a valued employee of the Corporation; and

WHEREAS, the Corporation wishes to assist the Employee with his personal life
insurance program both as an inducement to the Employee’s continued employment
and in recognition of the Employee’s ongoing valuable contribution to the
business success of the Corporation; and

WHEREAS, the Employee and the Corporation previously executed a Collateral
Assignment Split-Dollar Insurance Agreement (“Previous Agreement”) on April 30,
1989, to provide the Employee with a permanent universal life insurance policy
subject to the terms of the Previous Agreement; and

WHEREAS, the Employee and the Corporation desire to amend and restate the
Previous Agreement in order to make several changes to the Previous Agreement;
and

NOW, THEREFORE, in consideration of the foregoing and the mutual covenants
hereinafter set forth, the parties hereto agree as follows:

ARTICLE 1

OWNERSHIP OF THE POLICY

1.1 Employee as Owner. The Employee shall be the owner of the policy or
policies (which term shall include all supplemental riders or endorsements
thereto) (hereinafter the “Policy”) and may exercise all ownership rights
granted to the owner thereof by the terms of the Policy, except as may
otherwise be provided herein. The Employee and the Corporation agree that the
Policy shall be subject to the terms and conditions of this Agreement.

 

 

1.2 Collateral Assignment. The Employee agrees to execute a collateral
assignment (hereinafter the “Collateral Assignment”) to the Corporation to
secure the Corporation’s rights under this Agreement, in the form required by
or acceptable to the issuer of the Policy (hereinafter “the Issuer”). The
Collateral Assignment shall set forth the rights of the Corporation in and with
respect to the Policy pursuant to the terms and conditions of this Agreement.
The Employee and the Corporation agree to be bound by the terms of the
Collateral Assignment.

		
	 	         (a) Corporation’s Rights. The Corporation’s rights with respect to the
Policy shall be limited to:

	 
	(i) the right to obtain, directly or indirectly, one or more loans
or advances against the cash value of the Policy, to the extent of,
but not in excess of, the amount set forth in Article 4.4
(hereinafter the “Corporate Interest”), and the right to pledge or
assign the Corporate Interest as security for such loans or
advances; and
	
	
	
	

	
	
	
	

	
	
	
	

	(ii) the right to realize up to the Corporate Interest of the cash
value of the Policy on the full or partial surrender of the Policy;
and
	
	
	
	

	
	
	
	

	
	
	
	

	(iii) the right to realize the proceeds of the Policy as set forth
in Article 3.2 (hereinafter the “Corporation’s Death Benefit
Portion”), in the event of the death of the Employee; and
	
	
	
	

	
	
	
	

	
	
	
	

	(iv) the right to release the Collateral Assignment upon receipt
of the Corporate Interest.

		
	 	         (b) Employee’s Rights. The Employee shall retain all rights as owner of
the Policy, including, but not limited to, the following:

	 
	(i) the right to cause the full or partial surrender of the Policy;
provided, however, that the Employee shall give the Corporation
thirty (30) days advance written notice of his exercise of such
right; and
	
	
	
	

	
	
	
	

	
	
	
	

	(ii) the right to exercise all non-forfeiture or lapse option
rights permitted by the terms of the Policy; and
	
	
	
	

	
	
	
	

	
	
	
	

	(iii) the right to designate and to change the beneficiary or
beneficiaries of the portion of the proceeds of the Policy payable,
upon the death of the Employee, to the Employee’s beneficiary,
pursuant to Article 3.1 (hereinafter the “Employee’s Death Benefit
Portion”); and
	
	
	
	

	
	
	
	

	
	
	
	

	(iv) the right to elect any optional form of settlement available
with respect to the Employee’s Death Benefit Portion; and
	
	
	
	

	
	
	
	

	
	
	
	

	(v) the right to assign the Employee’s rights in and with respect
to the Policy.

 

 

Notwithstanding any other provision in this Agreement, with the exception of
the rights granted to
the Employee in this Article 1.2(b), the Employee shall irrevocably waive all
rights retained in the
Policy until such time as this Agreement is terminated pursuant to Article 4.1
and payment of the
Corporate Interest occurs.

ARTICLE 2

PAYMENT OF PREMIUMS

2.1 Premium. As used herein, the term “premium” shall mean the planned yearly
amount agreed upon between the Corporation and the Employee as the contribution
toward the Policy for any year; provided, however, that such amount shall never
be less than the Policy’s minimum required premium for such year. “Premium”
shall also include all costs associated with all supplemental riders and
endorsements to the Policy.

2.2 Premium Payment; Timing. The Corporation shall pay the premium on the
Policy to the Issuer on or before the due date of each premium payment, and in
any event, no later than the expiration of the grace period under the Policy
for such payment. Within the Policy year, the Corporation shall furnish the
Employee with written notice of such payment. Within ten (10) days of the
Employee’s receipt of such notice, unless such reimbursement is paid or deemed
paid by the Employee, the Employee shall reimburse the Corporation for that
portion of the premium payment equal to the amount of the annual cost of the
pure insurance protection on the life of the Employee under the Policy for the
ensuing Policy year. Such cost and corresponding reimbursement shall be equal
to the Corporation’s choice of either of the following:

	 
	(a) that rate per $1,000 of pure insurance protection promulgated by the
Internal Revenue Service in Rev. Rul. 55-747, 1955-2 C.B. 228, as the
same may be amended or replaced from time to time by published ruling
(hereinafter the “PS-58 rate”) as applied to such amount of pure
insurance protection provided to the Employee pursuant to the terms of
this Agreement; or
	
	
	
	

	
	
	
	

	
	
	
	

	
	
	
	

	(b) that current published rate per $1,000 of pure insurance protection
charged by the Issuer for initial-issue individual one-year term
insurance policies available to all standard risks as applied to such
amount of pure insurance protection provided to the Employee pursuant to
the terms of this Agreement.

Notwithstanding the above provisions of this Article 2.2, if the Corporation
shall fail to make any premium payment within twenty (20) days after its due
date, then the Employee may make such premium payment, and the Corporation
shall reimburse the Employee for the portion of such premium payment not
payable by the Employee hereunder, within ten (10) days of the making of such
premium payment by the Employee.

 

 

ARTICLE 3

RIGHTS UPON DEATH OF EMPLOYEE

3.1 Employee’s Death Benefit Portion. The Employee’s designated beneficiary or
beneficiaries, shall be entitled to receive a Death Benefit Portion in an
amount equal to three (3) times the Employee’s Annual Base Salary
(“Pre-Retirement Benefit”) if the Employee was actively employed with the
Corporation at the time of death. If the Employee’s death occurs following his
Retirement, the Employee’s designated beneficiary or beneficiaries shall be
entitled to receive (i) if the Employee’s death occurs within one year of his
Retirement date, an amount equal to fifty percent (50%) of his Pre-Retirement
Benefit, or (ii) if the Employee’s death occurs beyond one year but within two
years of his Retirement date, an amount equal to forty five percent (45%) of
his Pre-Retirement Benefit, or (iii) if the Employee’s death occurs beyond two
years but within three years of his Retirement date, an amount equal to forty
percent (40%) of his Pre-Retirement Benefit, or (iv) if the Employee’s death
occurs beyond three years but within four years of his Retirement date, an
amount equal to thirty five percent (35%) of his Pre-Retirement Benefit, or (v)
if the Employee’s death occurs beyond four years following his Retirement date,
an amount equal to thirty three and one-third percent (33 1/3%) of his
Pre-Retirement Benefit. The Employee and the Corporation agree to conform the
beneficiary designation of the Policy to the provisions hereof. For purposes
of this Agreement, Annual Base Salary shall mean the base compensation of the
Employee determined before reduction for any employee elective deferrals under
a Code Section 401(k) or 125 plan of an Employer, paid or deemed paid by an
Employer while in an employment classification as an Employee, but excluding
bonuses, overtime, and other forms of incentive earnings or imputed income.

3.2 Corporation’s Death Benefit Portion. Upon the death of the Employee, the
Corporation shall be entitled to receive the remaining proceeds of the Policy
once the Employee’s Death Benefit Portion set forth in Article 3.1 has been
paid to the Employee’s designated beneficiary or beneficiaries.

ARTICLE 4

RIGHTS UPON TERMINATION OF AGREEMENT

OR SURRENDER OF POLICY

4.1 Termination Defined. This Agreement shall automatically terminate upon
the occurrence of any of the following events:

	 
	(a) death of the Employee while insured under the Policy; or
	
	
	
	

	
	
	
	

	
	
	
	

	(b) the bankruptcy, receivership or dissolution of the
Corporation; or
	
	
	
	

	
	
	
	

	
	
	
	

	(c) the termination of employment of the Employee with the Corporation
(other than by reason of the Employee’s Retirement); or

 

 

	 
	
	
	
	

	
	
	
	

	
	
	
	

	(d) the Employee’s notice of his intent to exercise his right to
surrender the Policy, pursuant to Article 1.2 (b)(i); or
	
	
	
	

	
	
	
	

	
	
	
	

	(e) the written Agreement of the Employee and the Corporation; or
	
	
	
	

	
	
	
	

	
	
	
	

	(f) the removal of the Employee from the Corporation’s “A” or “B” payroll
group.

Notwithstanding anything else in this Agreement to the contrary, the
Corporation has the unilateral right at any time to terminate, amend or
discontinue the Agreement and to receive the Corporate Interest described in
Article 4.4 in such event.

Notwithstanding the language of this Article or any other provision of this
Agreement, the Corporation, in its sole discretion, may delay termination of
this Agreement if it is determined by the Corporation that adverse tax
consequences with respect to the Corporation and/or the Employee can be avoided
through such delay, or in order to increase the cash value in the Policy
available to Employee. Alternatively or in addition to delaying the
termination of this Agreement, the Corporation may in its sole discretion
choose to reduce the amount due to the Corporation from the Employee’s Policy
as Corporate Interest pursuant to Article 4.4 in order to increase the cash
value in the Policy available to Employee.

4.2 Definition of Retirement. For purposes of Articles 3.1 and 4.1,
“Retirement” shall mean termination of employment after having met the age and
service eligibility requirements for Early Retirement or Normal Retirement
under the Dana Corporation Retirement Plan (“CashPlus”), regardless of whether
the Employee is actually a participant in CashPlus at the time of his
termination.

4.3 Rights Upon Termination. In the event this Agreement is terminated
pursuant to Article 4.1(a), Article 3 shall apply and the Agreement shall
terminate only once the Employee Death Benefit Portion and the Corporate Death
Benefit Portion has been paid pursuant to Article 3. In the event this
Agreement is terminated pursuant to Article 4.1(b), 4.1(c), 4.1(d), 4.1(e) or
4.1(f), the Employee shall pay to the Corporation the amount determined
pursuant to Article 4.4 . Upon receipt of such amount from the Employee, the
Corporation shall take all steps necessary to release the Collateral Assignment
so that the Employee shall own the Policy free of all encumbrances thereon in
favor of the Corporation required by this Agreement.

4.4 Corporate Interest. The Corporation shall be entitled to receive either
(a) from the Employee, as specified in Article 4.3 or (b) from the Issuer upon
surrender, from the cash value of the Policy or (c) a withdrawal from the cash
value in the Policy, an amount equal to the gross premiums paid by the
Corporation, decreased by the sum of any indebtedness described in Article
1.2(a)(i) under the Policy.

 

 

Notwithstanding any other provision in this Agreement, in the event that the
Employee has more than one Policy subject to this Agreement, the Corporation
shall be entitled to receive and recover the Corporate Interest as described in
this Article 4.4 from any of the Policies subject to this Agreement in whatever
amounts the Corporation deems appropriate. In no case, however, shall the
Corporation receive and recover more than the Corporate Interest, when such
Corporate Interest in each Policy is aggregated, from all of the Policies
subject to this Agreement. To make the meaning
of the preceding sentence clear, all Policies on the life of the Employee which
are subject to this Agreement are to be treated, in aggregate, as one policy
for purposes of determining and recovering the Corporate Interest.

ARTICLE 5

ADMINISTRATIVE PROVISIONS

5.1 Issuer’s Responsibility. The Issuer shall not be considered a party to
this Agreement and shall
not be bound hereby. No provision of this Agreement, or any amendment hereof,
shall in any way
enlarge, change, vary or affect the obligations of the Issuer as expressly
provided in the Policy, except as the same may become a part of the Policy by
acceptance by the Issuer of the Collateral Assignment.

5.2 Amendment. This Agreement may be amended only by express written
Agreement signed by both the Employee and a duly authorized representative of
the Corporation.

5.3 Notice. Any and all notices required to be given under the terms of this
Agreement shall be given in writing and signed by the appropriate party, and
shall be sent by certified mail, postage prepaid, to the appropriate address
set forth below:

         (a)  to the Employee at:

		
	 	Mr. Joseph M. Magliochetti

Dana Corporation

4500 Dorr Street

Toledo, OH 43615

         (b)  to the Corporation at:

		
	 	Human Resources Department

Dana Corporation

4500 Dorr Street

Toledo, OH 43615

5.4 Heirs, Successors, and Assigns. This Agreement shall be binding upon and
shall inure to the benefit of the Employee, his or her successors, heirs and
the executors or administrators of the
estate of the Employee, and to the Corporation and its successors. The Employee
and the Corporation agree that either party may assign its interest under this
Agreement upon the prior

 

 

written consent of the other party hereto, and any assignee shall be bound by
the terms and conditions of this Agreement as if an original party hereto.

5.5 Interpretation. This Agreement and the interests of the Employee and the
Corporation hereunder shall be governed by and construed in accordance with the
laws of the State of Ohio.

5.6 Terms. This Agreement shall be effective as of the date first above
written, and shall continue until terminated as herein provided or until all
covenants herein activated by the death of the Employee are fully carried out.

5.7 Headings. Any headings or captions in this Agreement are for reference
purposes only, and shall not expand, limit, change or affect the meaning of any
provision of this Agreement.

5.8 Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall be deemed an original, and all of which
together shall constitute one and the same Agreement.

5.9 Fiduciary. The person serving from time to time as the Vice
President-Administration shall serve as the named Fiduciary and administrator
(hereinafter the “Fiduciary”) of the split-dollar arrangement established
pursuant to this Agreement. The Fiduciary shall have full power to administer
this Agreement, and the Fiduciary’s actions with respect hereto shall be
binding and conclusive upon all persons for all purposes; subject to Article
5.10. The Fiduciary shall not be liable to any person for any action taken or
omitted in connection with its responsibilities, rights and duties under this
Agreement unless attributable to willful misconduct or lack of good faith.

5.10 Claims Procedure. Any controversy or claim arising out of or relating to
this Agreement shall be filed with the Fiduciary which shall make all
determinations concerning such claim. Any decision by the Fiduciary denying
such claim shall be in writing and shall be delivered to all parties in
interest in accordance with the notice provisions of Article 5.3 hereof. Such
decision shall set forth the reasons for denial in plain language. Pertinent
provisions of the Agreement shall be cited and, where appropriate, an
explanation as to how the Employee can perfect the claim will be provided.
This notice of denial of benefits will be provided within ninety (90) days of
the Fiduciary’s receipt of the Employee’s claim for benefits. If the Fiduciary
fails to notify the Employee of his decision regarding his claim, the claim
shall be considered denied, and the Employee shall then be permitted to proceed
with his appeal as provided in this Article.

An Employee who has been completely or partially denied a benefit shall be
entitled to appeal this denial of his claim by filing a written statement of
his position with the Fiduciary no later than sixty
(60) days after receipt of the written notification of such claim denial. The
Fiduciary shall schedule an opportunity for a full and fair review of the issue
within thirty (30) days of receipt of the appeal.

The decision on review shall set forth specific reasons for the decision, and
shall cite specific references to the pertinent Agreement provisions on which
the decision is based.

 

 

Following his review of any additional information submitted by the Employee,
either through the hearing process or otherwise, the Fiduciary shall render a
decision on his review of the denied claim in the following manner:

	 
	(a) the Fiduciary shall make his decision regarding the merits of the
denied claim within sixty (60) days following his receipt of the request
for review (or within 120 days after such receipt, in a case where there
are special circumstances requiring extension of time for reviewing the
appealed claim). He shall deliver the decision to the claimant in
writing. If an extension of time for reviewing the appealed claim is
required because of special circumstances, written notice of the
extension shall be furnished to the Employee prior to the commencement of
the extension. If the decision on review is not furnished within the
prescribed time, the claim shall be deemed denied on review; and
	
	
	
	

	
	
	
	

	
	
	
	

	(b) the decision on review shall set forth specific reasons for the
decision, and shall cite specific references to the pertinent Agreement
provisions on which the decision is based.

5.11 Previous Agreement Superceded. This Amended and Restated Agreement
contains the entire agreement of the parties concerning the subject matter, and
all promises, representations, understandings, arrangements and prior
agreements concerning the subject matter are merged herein and superceded
hereby with respect to the Employee (and his or her successors and heirs);
including, without limitation, the Previous Agreement.

IN WITNESS WHEREOF, the parties hereto have set their hands and seals as of the
day and year first above written.

	 
	Dana Corporation
	 
	By: /s/ C. W. Hinde
	

	Its: Asst. Treasurer
	

	The Employee
	
	
	
	

	/s/ J. M. Magliochetti
	

	Joseph M. Magliochetti
	
	
	
	

	1/20/02
	

	DateEX-10-L: RETIREMENT BONUS AGREEMENT

 

Exhibit 10-L

[Dana logo] World Headquarters

December 21, 2001

Edward J. Shultz

7164 Forest Brook Drive

Sylvania, Ohio 43560

Dear Ed:

Congratulations on your upcoming retirement! In light of your retirement, and
Dana Corporation’s (“Dana’s”) plan to sell the assets and businesses of Dana
Credit Corporation (“DCC”) I thought it would be a good time to outline some of
the issues related to your retirement and the upcoming transactions regarding
DCC.

Upon your retirement, you agree that you will resign from any positions,
including as an officer, that you hold at DCC and Dana. At that time, you will
be elected by the Board of Directors of DCC as Chairman Emeritus of DCC.

Dana has agreed to offer you a retirement bonus of $1,000 (“Retirement Bonus”)
to be payable on your retirement date and, in addition, has offered you a
consulting agreement to provide general advisory services to Dana in connection
with certain of the operations of DCC.

In consideration of this Retirement Bonus and the consulting agreement, you
agree to execute a release satisfactory to Dana releasing Dana, its affiliates,
subsidiaries, shareholders, directors, officers, employees, employee benefit
plans, representatives and agents and their successors and assigns from any and
all employment-related claims you or your successors and beneficiaries might
then have against them (excluding any claims you might then have under this
Letter, the consulting agreement or any claims for vested benefits under any
employee pension plan sponsored by Dana). A draft of such release is attached
to this letter for your review. We would advise you to review this draft
release carefully with the assistance of an attorney.

Please indicate your acceptance by signing below and returning to me by                                 ,
2002.

	 	 
	 	Sincerely yours,
	
	
	
	

	 	/s/ R. C. Richter
	 	

	 	for Dana Corporation

	 	 
	I agree to the terms
described above.	 
	/s/ E. J. Shultz

Edward J. Shultz	 
	Date: 12/21/01	 
	

	People Finding A Better Way®	 
	
	
	
	

	Dana Corporation	 

P.O. Box 1000, Toledo, OH 43697   Tel: (419) 535-4500   Fax: (419) 535-4643

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00034-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00034-of-00352.parquet"}]]