Document:

Sourcing Letter Agreement

Exhibit 10.43

 

 

 

April 22, 2004 

Mr. Fred Solomon

Director, Procurement 

Daimler Chrysler Corporation

800 Chrysler Drive

Auburn Hills, MI 48326-2757

Dear Fred:

This letter will confirm the DaimlerChrysler Corporation (DCC) and American Axle & Manufacturing, Inc. (AAM) agreement bringing closure to the current * * * issue, Plan * * * CPV volume/mix capacity, sourcing of the driveline components for * * * and * * * program * * *, and new business opportunities for AAM.

 

1) * * *Closure

    a)     AAM shall determine and will provide DCC with a * * * on the * * * axles totaling * * * annually effective* * *. AAM shall determine and will provide DCC with a * * * totaling * * *annually effective * * *.

    b)     AAM will provide DCC with * * * over * * *. A payment of * * * will be made * * *, a payment of * * * will be made * * *, and * * * each will be made * * * beginning in * * * and ending in* * *.

    c)     AAM will provide DCC * * * over * * *. Annual * * * of * * * will be made * * * beginning in * * *. Such * * * will be * * * DCC * * * and * * *, the * * * and * * * and * * * by * * *. 

            i.     If DCC * * * the * * * business identified for any reason, then AAM will * * * for * * * associated with this subparagraph 1 (c). 

 

            ii.    In the event that the * * * identified is * * * and * * *, then AAM’s * * *obligation shall be * * * until * * * and * * * has occurred. 

 

 

	 
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    d)     AAM shall determine and will provide to DCC * * * on the * * * totaling * * * effective with the * * * of the * * * program and an * * * effective * * * after the first full calendar year of the * * * program.

    e)     DCC and AAM will continue to work cooperatively on joint MCM cost reduction initiatives. 

    f)      If DCC desires to * * *, AAM will * * *on the * * * to * * * including but not limited to * * * and other * * *.

 

    g)     AAM agrees to * * * as outlined in * * * and DCC agrees that AAM will * * * associated with any * * * on * * * with DCC * * *, and * * * for the * * * unless developed as * * * and * * * agreed to by AAM and DCC.

    h)     DCC acknowledges that AAM * * * of commercial * * * and DCC will * * * AAM * * *.

    i)      DCC and AAM agree that no * * * are * * * on * * * supplied by AAM to DCC unless * * * and * * * to by AAM and DCC. 

    j)      DCC agrees that AAM * * * and * * * valued * * * prior to * * * that was * * * and not * * * AAM’s * * *.

2) * * *Volume/Mix Capacity               

    AAM and DCC agree to the following with respect to current capacity programs:

    a)     DCC will * * * AAM for * * * the Plan * * * CPV’s from * * * at the AAM * * * of  * * *and * * *.

    b)     AAM will * * * charges * * * shipments * * * Plan * * * CPV * * * until * * *. Such * * * are estimated to be* * *. DCC will * * * with * * * as part of AAM’s * * * proposal.

            i.     AAM will submit a * * * to DaimlerChrysler for the * * *described * * * by * * * for all * * * through * * * and forecast through * * *. 

 

            ii.    DaimlerChrysler will issue a purchase order * * * to AAM by * * *.

 

 

	 
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            iii.   AAM will provide * * * to DCC, * * * of the * * * and the * * *AAM as outlined in * * *, by * * *.

    c)     DCC shall capacitize AAM to the appropriate volume/mix and maintain schedules not to exceed AAM stated flex capacity (CPV) and total * * *. 

    d)     DCC will pay AAM * * * for the tooling associated with the * * * capacity. AAM will * * * DCC * * * within * * * after receipt * * * from DCC * * *. 

3) * * * Program Sourcing

   DCC hereby sources the following programs to AAM as the * * * supplier of * * * and other components (excluding * * *) currently supplied by AAM to DCC for the life of each of the following programs:

    a)     DCC hereby sources to AAM as set forth above * * * programs (i.e. * * *, other).

            i.    Pricing for * * * products shall be based upon * * *.

            ii.   Pricing for * * * products will be based on DCC and AAM working cooperatively together to minimize the cost of these products to the mutual satisfaction of both organizations based on an agreed upon design direction. 

            iii.   AAM will work cooperatively with DCC should DCC choose to review AAM’s cost competitiveness through a market competitiveness assessment as part of the program development process. AAM will be competitive for these products in the areas of * * *.

 

    b)     DCC hereby sources to AAM * * * the * * * program and * * * program and * * *.

            i.     * * *

 

                1.  Prices for the * * * will be the prices at the * * * of the * * * ordered by DCC. AAM will be * * * in the areas of * * *. 

            ii.    * * *

                1.  Prices will be established at the * * * program through a * * * with respect to * * * with AAM * * *. 

                2.  DCC and AAM will establish a * * * procedure.

 

 

	 
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            iii.   * * * Program Performance Requirements 

                1.   AAM will work together with DCC and have * * * as DCC establishes * * * performance requirements * * * in support of the DCC vehicle target setting process. 

                2.   AAM will work cooperatively with DCC should DCC choose to * * * through a * * * as part of the program development process of the * * *.

    c)     If DCC determines in good faith that AAM is not competitive in the areas of * * * AAM will make the appropriate * * *. 

 

4) * * * Commercial and Technical Issues

   DCC and AAM agree that by * * *, both parties will * * * any * * * commercial and technical issues and mutually agree upon a program plan for * * * supplied by AAM and * * *.

5) New Business

    a)     DCC * * * AAM * * * and will provide AAM with a good faith opportunity to quote and earn future new business. 

    b)     DCC will designate AAM as a cooperative engineering design/development and the prototype source for a * * * December 31, 2004. DCC will * * * AAM the * * * for the aforementioned * * * program * * *. 

            i.     AAM and DCC agree to conduct an engineering/purchasing management review of AAM’s capabilities to support the * * * in support of * * *. DCC will make a good faith effort to review and qualify AAM’s engineering and manufacturing capabilities in support of the * * * program.

 

            ii.    In the event that * * * program * * * is designated by DCC * * *, DCC will provide AAM * * * for the * * * consisting of any combination of * * *, and/or * * * as applicable for the designated program.

            iii.    If * * * or * * * program cannot be * * * and agreed to * * *, AAM will * * * to * * * any * * * and beyond as identified * * * until * * * program * * *. Also, * * * will not be incorporated until an * * * is agreed upon.

 

 

	 
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        iv.    Any * * * associated with the aforementioned designation as the design/development/prototype source, * * * in the event AAM is * * * production business, will be * * * by a Program Specific Application Engineering letter prior to AAM commencing work on the program.

            v.    DCC and AAM will establish a * * * procedure.

6. Conflicts

In the event the terms and conditions of this Agreement conflict with the terms and conditions of any other agreement or purchase order between DCC and AAM, the terms and conditions of this Agreement shall control, unless such provision is expressly amended in writing signed by both DCC and AAM 

If this agreement accurately reflects our understanding, please provide written acceptance of this proposal.

Sincerely,

/s/ David C. Dauch

David C. Dauch

Senior Vice President, 

Sales, Marketing and Driveline Division

cc:  T. Heim

   S. Proctor

   B. McKenna

 

 

 

 

***  Any text removed pursuant to AAM's confidential treatment request is being separately submitted with the U.S. Securities and Exchange Commission and is marked "***" herein.

 

 

 

 

	 
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June 11, 2004

 

Mr. Mark Kozma

Daimler Chrysler Corporation

800 Chrysler Drive

Auburn Hills, MI 48326-2757

Dear Mark,

The following amends and replaces Section 1, sub-item C in its entirety, from the April 22, 2004 agreement between Daimler Chrysler Corporation (DCC) and American Axle & Manufacturing, Inc. (AAM)

    C)     AAM will provide DCC with * * * . The * * * of * * * will be * * * on* * *. The * * * will be * * * on * * *.

 

        i)     In accordance with Section 4, AAM will * * * source for the * * *, the * * *, and the * * *.

 

        ii)    Prices for the above * * * will be * * * according to the pricing information provided by DCC to AAM on * * *, and the effective date of the * * * to be * * *. 

 

        iii)    * * * thru joint MCM cost reduction initiatives

         * * * thru joint MCM cost reduction initiatives

 

        iv)    DCC agrees to support AAM to the fullest extent possible in the timely validation and approval of all the * * * /process engineering changes * * *. Since the aforementioned piece price adjustment and lump sum payments address the * * * requirements, there will not be any * * * associated with the implementation of these product/process revisions. 

 

        v)     AAM will support a dual path approach for the * * * and * * * for the * * * application.

/s/ Stephen N. Jeske

 

Stephen N. Jeske

Director of Sales

American Axle and Manufacturing Inc.

 

 

 

 

 

***  Any text removed pursuant to AAM's confidential treatment request is being separately submitted with the U.S. Securities and Exchange Commission and is marked "***" herein.

 

	 
	 	 	 
	

	 

 

DaimlerChrysler Logo

 

DaimlerChrysler Corporation

Procurement and Supply

May 7, 2004

Mr. David C. Dauch

Senior Vice President

American Axle & Manufacturing, Inc.

Sales, Marketing, and Driveline Division

1840 Holbrook 

Detroit, MI 48212

Dear David:

This letter is to confirm DaimlerChrysler’s acceptance of American Axle & Manufacturing’s * * * proposal as outlined in your letter dated April 22, 2004. As we have discussed, DaimlerChrysler agrees to work with American Axle & Manufacturing to grow and strengthen our relationship and will evaluate American Axle & Manufacturing’s performance to expectations based on the overall rating for the defined performance parameters. 

DaimlerChrysler looks forward to enhancing its relationship with American Axle & Manufacturing for the mutual benefit of our two companies.

Sincerely,

/s/ Fred M. Solomon

Fred M. Solomon

Director Powertrain Procurement

 

 

 

                                                                   

DaimlerChrysler Corporation

800 Chrysler Drive CIMS 484-01-20

Auburn Hills, MI USA 48326-2757

 

A Company Of The DaimlerChrysler Group                                                  

 

 

             

             

***  Any text removed pursuant to AAM's confidential treatment request is being separately submitted with the U.S. Securities and Exchange Commission and is marked "***" herein.Cancellation of Indenture 5-17-2004

EXHIBIT 4.1

 

 

 

 

Prepared by Paul J. Leighton

666 Grand Avenue, 29th Floor

Des Moines, Iowa 50309

INSTRUMENT

OF

CANCELLATION, DISCHARGE, RECONVEYANCE AND TRANSFER

DATED AS OF MAY 17, 2004

UNDER

THE INDENTURE OF MORTGAGE AND DEED OF TRUST

DATED AS OF MARCH 1, 1947, AS AMENDED AND SUPPLEMENTED

BY AND BETWEEN

IOWA-ILLINOIS GAS AND ELECTRIC COMPANY, AN ILLINOIS CORPORATION,

(MIDAMERICAN ENERGY COMPANY, SUCCESSOR)

AND

HARRIS TRUST AND SAVINGS BANK, AN ILLINOIS CORPORATION

(BNY MIDWEST TRUST COMPANY, SUCCESSOR)

TRUSTEE

AND

LYNN LLOYD

(C. POTTER, SUCCESSOR)

INDIVIDUAL TRUSTEE

 

 

THIS Instrument of Cancellation, Discharge, Reconveyance and Transfer dated as of May 17, 2004, under the Indenture of Mortgage and Deed of Trust (“Indenture”), dated as of March 1, 1947, as amended and supplemented, by and between Iowa-Illinois Gas and Electric Company, an Illinois corporation (“Iowa-Illinois”) (MidAmerican Energy Company, an Iowa corporation (“MidAmerican Energy”), successor), having its principal place of business in Des Moines, Iowa, and Harris Trust and Savings Bank, an Illinois corporation (BNY Midwest Trust Company, an Illinois corporation, successor to Harris Trust and Savings Bank), having its principal place of business in the City of Chicago, State of Illinois, Trustee (“Trustee”) and Lynn Lloyd (C. Potter, successor to Lynn Lloyd), Individual Trustee (the Trustee and the Individual Trustee being hereinafter referred to as the “Trustees”), under the Indenture.

WITNESSETH:

WHEREAS, Iowa-Illinois has heretofore executed and delivered to the Trustees the Indenture to secure the bonds of Iowa-Illinois, and, at various dates thereafter, Iowa-Illinois has heretofore executed and delivered Thirty Supplemental Indentures (designated the “First Supplemental Indenture,” the “Second Supplemental Indenture,” etc., as the case may be) (and recorded as shown on the attached Exhibit A), and thirty series of bonds were created and issued under the Indenture; and

WHEREAS, effective July 1, 1995, Midwest Resources Inc., an Iowa corporation, Midwest Power Systems Inc., an Iowa corporation, and Iowa-Illinois were validly and legally merged with and into MidAmerican Energy, the surviving entity of such merger; and

WHEREAS, MidAmerican Energy and the Trustees executed and delivered the Thirty-First Supplemental Indenture dated as of July 1, 1995, pursuant to which MidAmerican Energy assumed to make due and punctual payment of the principal of and interest on all of the bonds issued under the Indenture and agreed to perform and fulfill the covenants and conditions of Iowa-Illinois under the Indenture and the indentures supplemental thereto required to be kept or performed by Iowa-Illinois, and made certain grants and assurances and entered into certain covenants contemplated thereby; and

WHEREAS, the Company (as defined in the Indenture), its successors and assigns have paid or caused to be paid the principal of and interest on all bonds heretofore issued under the Indenture, together with the premium, if any, payable on such of said bonds as may have been called for redemption prior to maturity, or have provided for the payment thereof by depositing with the Trustees the entire amount due or to become due thereon for principal, interest and premium, if any, and the Company, its successors and assigns have also paid or caused to be paid all other sums theretofore payable by the Company under the Indenture; and

WHEREAS, the Indenture and the estate and rights thereby granted have ceased, determined and become void; and

 

2

 

 

WHEREAS, the Trustees have received the certificate and opinion of counsel referred to in Section 16.01 of Article XVI of the Indenture concerning conditions precedent to the satisfaction and discharge of the Indenture.

NOW, THEREFORE, in consideration of the premises and of the full and final payment of all principal of and interest and premium, if any, on all bonds heretofore issued under the Indenture, and all other sums heretofore payable by the Company under the Indenture, the receipt whereof is hereby acknowledged, and of other good and valuable considerations, the Trustees do hereby take the following action pursuant to Section 16.01 of Article XVI of the Indenture:

ARTICLE I

Cancellation and Discharge

The Trustees do hereby cancel and discharge the lien of the Indenture and of all indentures supplemental thereto and by this Instrument does satisfy the lien of the Indenture and of all indentures supplemental thereto, and all covenants of the Company (MidAmerican Energy) in the Indenture are hereby cancelled.

ARTICLE II

Reconveyance and Transfer

The Trustees do hereby reconvey and transfer to MidAmerican Energy the trust estate, as defined in the Indenture.

[THE REMAINDER OF THIS PAGE LEFT INTENTIONALLY BLANK]

 

3

 

 

IN WITNESS WHEREOF, BNY Midwest Trust Company, successor to Harris Trust and Savings Bank, as Trustee as aforesaid, has caused this Instrument of Cancellation, Discharge, Reconveyance and Transfer to be signed on its behalf and named by one of its vice presidents and its corporate seal to be thereto affixed and duly attested by one of its assistant secretaries, and C. Potter, successor to Lynn Lloyd, as Individual Trustee as aforesaid, has hereto set her hand this 17th day of May, 2004. 

 

	 	 	 
	 	BNY MIDWEST TRUST COMPANY,
	 
 	 Successor to Harris Trust and Savings
 Bank, Trustee
	(SEAL)	 	 
		By:  	/s/   J. Bartolini
	 	

   J. Bartolini
	 	   Vice President

	 ATTEST:	 	 	 
	 	 	 	 
	 	 	 	 
	/s/   D. G. Donovan	 	 	
	

   D. G. Donovan	 	 	
		 	 	

	 	 	 
	 
 	 
 	 
 
		  	/s/   C. Potter
	 	

C. POTTER, Success to
	 	Lynn Lloyd, Individual Trustee

Signed, sealed and delivered by

BNY Midwest Trust Company and

C. Potter in our presence

 

	
 /s/     
	M. Callahan
	

 M. Callahan

 

	
 /s/     
	R. Ellwanger
	

R. Ellwanger

 

 

 

4

 

 

	STATE OF ILLINOIS 	
 )
	 
	 	
 ) 
	 ss.
	
COUNTY OF COOK
	
 )
	 

 

On this 17th day of May, 2004, before me, A. Hernandez, a Notary Public in and for Cook County, State of Illinois, personally appeared J. Bartolini and D. G. Donovan, to me personally known, who being by me duly sworn, did say that they are a vice president and an assistant secretary, respectively, of BNY Midwest Trust Company, Successor Trustee to Harris Trust and Savings Bank, a corporation of the State of Illinois; that the seal affixed to the foregoing instrument is the corporate seal of said corporation, and that said instrument was signed and sealed on behalf of the said corporation by authority of its Board of Directors; and the said persons acknowledged the execution of the said instrument as the voluntary act and deed of said corporation by it voluntarily executed. 

WITNESS my hand and notarial seal the day and year in this certificate first above set forth. 

 

	 
 	 
 	 
 
	(Notarial Seal)  	 	/s/  A. Hernandez
	 	

	 	    Notary Public

	STATE OF ILLINOIS 	
 )
	 
	 	
 ) 
	 ss.
	
COUNTY OF COOK
	
 )
	 

 

On this 17th day of May, 2004, before me, A. Hernandez, a Notary Public in and for Cook County, State of Illinois, personally appeared C. Potter, to me known to be the person named in and who executed the foregoing instrument, and acknowledged that she executed the same as her voluntary act and deed. 

	
 	 
 	 
 
	(Notarial Seal)  	 	/s/  A. Hernandez
	 	

	 	    Notary Public

5

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