Document:

exv4w3

 

Exhibit 4.3

RESIDENTIAL CAPITAL CORPORATION

SECOND SUPPLEMENTAL INDENTURE

          SECOND SUPPLEMENTAL INDENTURE, dated as of November 21, 2005 (this “Supplemental Indenture”),
between RESIDENTIAL CAPITAL CORPORATION, a Delaware corporation (the “Company”), the Guarantors and
DEUTSCHE BANK TRUST COMPANY AMERICAS, a banking corporation duly incorporated and existing under
the laws of the State of New York, as trustee (the “Trustee”).

RECITALS

          WHEREAS, the Company, the Guarantors and the Trustee have entered into an indenture dated as
of June 24, 2005 (as supplemented and in effect from time to time, the “Indenture”);

          WHEREAS, pursuant to Section 10.1(d) of the Indenture, the Company, the Guarantors and the
Trustee are permitted to enter into indentures supplemental to the Indenture without the consent of
the Holders of any Securities at the time outstanding for the purpose of correcting any provision
contained in the Indenture that may be defective, provided that such action does not adversely
affect the interests of the Holders of any Securities;

          WHEREAS, the Company and the Guarantors wish to correct several provisions contained in the
Indenture as set forth in this Supplemental Indenture;

          WHEREAS, the Company and the Guarantors have requested the Trustee to join with them in the
execution and delivery of this Supplemental Indenture;

          WHEREAS, the Company has caused to be delivered to the Trustee an Opinion of Counsel to the
effect that, subject to the assumptions and qualifications contained therein, this Supplemental
Indenture complies with the provisions of Article Ten of the Indenture; and

          WHEREAS, all the conditions and requirements necessary to make this Supplemental Indenture,
when duly executed and delivered, a valid and binding agreement in accordance with its terms and
for the purposes herein expressed, have been performed and fulfilled.

          NOW THEREFORE, the Company, the Guarantors and the Trustee hereby agree as follows:

ARTICLE I

RELATION TO INDENTURE; RULES OF CONSTRUCTION

          Section 1.01 RELATION TO INDENTURE. This Supplemental Indenture constitutes an
integral part of the Indenture.

          Section 1.02 RULES OF CONSTRUCTION. For all purposes of this Supplemental Indenture:

          (a) capitalized terms used herein without definition shall have the meanings specified in the
Indenture;

 

     (b) all references herein to Articles and Sections, unless otherwise specified, refer to the
corresponding Articles and Sections of this Supplemental Indenture;

     (c) the terms “herein,” “hereof,” “hereunder” and other words of similar import refer to this
Supplemental Indenture; and

     (d) in the event of a conflict with the definition of terms in the Indenture, the definitions
in this Supplemental Indenture shall control.

ARTICLE II

AMENDMENTS

     Section 2.01 AMENDMENTS. The Indenture is hereby amended as follows:

     (a) Section 7.06 of the Indenture is hereby amended and restated in its entirety to read as
follows:

     “Compensation and Expenses of Trustee. The Company covenants and agrees to pay to the Trustee
from time to time, and the Trustee shall be entitled to, reasonable compensation, and, except as
otherwise expressly provided the Company will pay or reimburse the Trustee upon its request for all
reasonable expenses, disbursements and advances incurred or made by the Trustee in accordance with
any of the provisions of this Indenture (including the reasonable compensation, expenses and
disbursements of its counsel and of all Persons not regularly in its employ) except any such
expense, disbursement or advance as may arise from its negligence or bad faith. If any property
other than cash shall at any time be subject to the lien of this Indenture, the Trustee, if and to
the extent authorized by a receivership or bankruptcy court of competent jurisdiction or by the
supplemental instrument subjecting such property to such lien, shall be entitled to make advances
for the purpose of preserving such property or of discharging tax liens or other prior liens or
encumbrances hereon. The Company also covenants to indemnify the Trustee for, and to hold it
harmless against, any loss, liability or reasonable expense incurred without negligence or bad
faith on the part of the Trustee, arising out of or in connection with the acceptance or
administration of this trust, including the reasonable costs and expenses of defending itself
against any claim of liability in the premises. The obligations of the Company under this Section
to compensate the Trustee and to pay or reimburse the Trustee for reasonable expenses,
disbursements and advances shall constitute additional indebtedness hereunder, and shall survive
discharge of the Indenture, payment in full at maturity of the Securities, and resignation or
removal of the Trustee. Such additional indebtedness shall be secured by a lien prior to that of
the Securities upon all property and funds held or collected by the Trustee as such, except funds
held in trust for the benefit of the Holders of particular Securities or Coupons.”

     (b) Section 11.01 of the Indenture is hereby amended and restated in its entirety to read as
follows:

     “Company May Consolidate, etc., on Certain Terms. The Company covenants that it will not
merge or consolidate with any other Corporation or sell, assign, transfer, lease or otherwise
convey all or substantially all of its property or assets to any Person, unless (i) either

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the Company shall be the continuing Corporation, or the successor Person (if other than the
Company) shall be a Corporation organized and existing under the laws of the United States of
America or a state thereof and such Corporation shall expressly assume the due and punctual payment
of the principal of (and premium, if any), interest, if any, and Additional Amounts, if any, on all
the Securities and any Coupons, according to their tenor, and the due and punctual performance and
observance of all of the covenants and conditions of this Indenture to be performed by the Company
by supplemental indenture satisfactory to the Trustee, executed and delivered to the Trustee by
such Corporation, (ii) each Guarantor shall, by supplemental indenture, confirm that their
Guarantee shall apply to the surviving entity’s obligations under the Securities and this
Indenture, as modified by such supplemental indenture, and confirm the due and punctual performance
of the Guarantee and the covenants of the Guarantor in this Indenture, and (iii) the Company or
such successor Corporation, as the case may be, shall not, immediately after such merger or
consolidation, or such sale or conveyance, be in default in the performance of any such covenant or
condition.

     For purposes of the foregoing, any sale, assignment, transfer, lease or other conveyance of
the properties and assets of one or more Significant Subsidiaries (other than to the Company or
another Subsidiary of the Company), which, if such assets were owned by the Company, would
constitute all or substantially all of the properties and assets of the Company, shall be deemed to
be the transfer of all or substantially all of the properties and assets of the Company.”

     (c) Section 12.02 of the Indenture is hereby amended and restated in its entirety to read as
follows:

     “Satisfaction, Discharge and Defeasance of Securities of any Series. If pursuant to Section
2.01 provision is made for the defeasance of Securities of a series, then the provisions of this
Section 12.02 shall be applicable except as otherwise specified as contemplated by Section 2.01 for
Securities of such series. The Company shall cease to be under any obligation to comply with any
term, provision, condition or covenant of Section 4.07 and 4.08 with respect to the outstanding
Securities of any series or any other term, provision, condition or covenant of the outstanding
Securities of any such Series specified as contemplated by Section 2.01, when

                    (1) either

     (A) with respect to all outstanding Securities of such series, the Company has
deposited or caused to be deposited with the Trustee:

     (i) as trust funds in trust (in such currency in which such outstanding
Securities and any related Coupons are then specified as payable at stated
maturity) in an amount as will be; or

     (ii) as obligations in trust direct noncallable obligations of, or
noncallable obligations the payment of principal of and interest on which is
fully guaranteed by, the United States of America (or, in the case of
Securities payable in a currency other than the U.S. Dollars, by the
government that issued such currency), or to the payment of which
obligations or guarantees the full faith and credit of the United States of

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America (or, in the case of Securities payable in a currency other than
the U.S. Dollars, by the government that issued such currency) is pledged,
maturing as to principal and interest in such amounts and at such times as
will, together with the income to accrue thereon (but without reinvesting
any proceeds thereof), be; or

     (iii) a combination of (i) and (ii);

sufficient to pay and discharge the entire indebtedness on all outstanding
Securities of such series for principal (and premium, if any), interest, if any, and
Additional Amounts, if any, to the stated maturity or any redemption date as
contemplated by the last paragraph of this Section 12.02, as the case may be, in
installments on the dates such principal (and premium, if any), interest, if any,
and Additional Amounts, if any, shall be due; or

     (B) the Company has properly fulfilled such other terms and conditions to the
satisfaction and discharge as is specified, as contemplated by Section 2.01, as
applicable to the Securities of such series, and

     (2) the Company has paid or caused to be paid all other sums payable with respect to
the outstanding Securities of such series, and

     (3) the Company has delivered to the Trustee an Officers’ Certificate and an Opinion of
Counsel, each stating that all conditions precedent herein provided for relating to the
satisfaction and discharge of the entire indebtedness on all outstanding Securities of any
such series have been complied with.

     Notwithstanding the discharge and defeasance of any term, provision, condition or covenant set
forth in Section 4.07 and 4.08 with respect to the Securities of a series or any term, provision,
condition or covenant of the Securities of a series specified as contemplated by Section 2.01 with
respect to the Securities of a series at the time outstanding, all other obligations of the Company
in this Indenture, including without limitation, the Company’s primary liability for the payment of
the principal (premium, if any), interest, if any, and Additional Amounts, if any, on all
Securities of such series shall survive until the payment of all such principal (premium, if any),
interest, if any, and Additional Amounts, if any, has been made, unless the Company has delivered
to the Trustee an Opinion of Counsel stating that (i) the Company has received from, or there has
been published by, the Internal Revenue Service a ruling or (ii) since the date of execution of
this Indenture, there has been a change in the applicable Federal income tax law, in either case to
the effect that, and based thereon such opinion shall confirm that, the holders of the outstanding
Securities and any related Coupons will not recognize income, gain or loss for Federal income tax
purposes as a result of such deposit, defeasance and discharge and will be subject to Federal
income tax on the same amounts and in the same manner and at the same times, as would have been the
case if such deposit, defeasance and discharge had not occurred. Upon delivery of such opinion and
satisfaction of the other conditions in this Section 12.02, the Company shall be deemed to have
paid and discharged the entire indebtedness of all outstanding Securities of such series (and the
Trustee shall execute proper instruments acknowledging satisfaction and discharge of such
indebtedness), except (i) rights of registration

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of transfer and exchange in accordance with Section 2.05, and (ii) substitution of mutilated,
destroyed, lost or stolen Securities in accordance with Section 2.07.

     Any deposits with the Trustee referred to in Section 12.02(1)(A) above shall be irrevocable
and shall be made under the terms of an escrow trust agreement in form and substance satisfactory
to the Trustee. If any outstanding Securities of such series are to be redeemed prior to their
stated maturity, whether pursuant to any optional redemption provisions or in accordance with any
mandatory sinking fund requirement or otherwise, the applicable escrow trust agreement shall
provide therefor and the Company shall make such arrangements as are satisfactory to the Trustee
for the giving of notice of redemption by the Trustee in the name, and at the expense, of the
Company.”

ARTICLE III

MISCELLANEOUS PROVISIONS

          Section 3.01 RATIFICATION. The Indenture, as supplemented and amended by this
Supplemental Indenture, is in all respects hereby adopted, ratified and confirmed.

          Section 3.02 COUNTERPARTS. This Supplemental Indenture may be executed in any number
of counterparts, each of which when so executed shall be deemed an original, and all such
counterparts shall together constitute but one and the same instrument.

          Section 3.03 GOVERNING LAW. THIS SUPPLEMENTAL INDENTURE SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

[Signature page follows]

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     IN WITNESS WHEREOF, the parties hereto have caused this Second Supplemental Indenture to be
duly executed as of the day and year first above written.

	 	 	 	 	 
	 	 	RESIDENTIAL CAPITAL CORPORATION
	 
	 	 	 	 
	 

	 	By:	 	/s/ Louise M. Herrle
	 

	 	 	 	 
	 

	 	Name:
	 	Louise M. Herrle
	 

	 	Title:
	 	Treasurer
	 
	 	 	 	 
	 	 	GMAC RESIDENTIAL HOLDING CORP.,

as Guarantor
	 
	 	 	 	 
	 

	 	By:	 	/s/ David M. Bricker
	 

	 	 	 	 
	 

	 	Name:
	 	David M. Bricker
	 

	 	Title:
	 	Senior Vice President and

Chief Financial Officer
	 
	 	 	 	 
	 	 	GMAC MORTGAGE CORPORATION,

as Guarantor
	 
	 	 	 	 
	 

	 	By:	 	/s/ David M. Bricker
	 

	 	 	 	 
	 

	 	Name:
	 	David M. Bricker
	 

	 	Title:
	 	Senior Vice President and

Chief Financial Officer
	 
	 	 	 	 
	 	 	GMAC-RFC HOLDING CORP.,

as Guarantor
	 
	 	 	 	 
	 

	 	By:	 	/s/ Bruce J. Paradis
	 

	 	 	 	 
	 

	 	Name:
	 	Bruce J. Paradis
	 

	 	Title:
	 	President

 

 

	 	 	 	 	 
	 	 	RESIDENTIAL FUNDING CORPORATION,

as Guarantor
	 
	 	 	 	 
	 

	 	By:	 	/s/ Bruce J. Paradis
	 

	 	 	 	 
	 

	 	Name:

Title:
	 	Bruce J. Paradis

President
	 
	 	 	 	 
	 	 	HOMECOMINGS FINANCIAL NETWORK, INC.,

as Guarantor
	 
	 	 	 	 
	 

	 	By:	 	/s/ Michael J. Kozlak
	 

	 	 	 	 
	 

	 	Name:

Title:
	 	Michael J. Kozlak

President
	 
	 	 	 	 
	 	 	DEUTSCHE BANK TRUST COMPANY AMERICAS,

as Trustee
	 
	 	 	 	 
	 

	 	By:	 	/s/ Annie Jaghatspanyan
	 

	 	 	 	 
	 

	 	Name:

Title:

	 	Annie Jaghatspanyan

Assistant Vice Presidentexv10wxgy

 

Exhibit 10(g)

Company
Vehicle Operations

SENIOR MANAGEMENT VEHICLE

PROGRAM (SMVP) SUPPLEMENT

 

 

 

					
	
	 	http://cvo.gm.com
	 	Revised: 12/15/05

 

 

TABLE OF CONTENTS:

	1.	 	PURPOSE OF THE SENIOR MANAGEMENT VEHICLE PROGRAM (SMVP)
	 
	2.	 	PARTICIPATION

	 	2.1	 	SMVP Participation Waiver (Opt-out)

	3.	 	CVO ONLINE DRIVER ORIENTATION
	 
	4.	 	PROGRAM ADMINISTRATION FEE REQUIREMENT
	 
	5.	 	VEHICLE ASSIGNMENT

	 	5.1	 	Vehicle Selection
	 
	 	5.2	 	Assignment Period
	 
	 	5.3	 	SMVP Participation During Leave of Absence

	6.	 	IMPUTED INCOME
	 
	7.	 	DRIVE AND BUY
	 
	8.	 	BIENNIAL PURCHASE / LEASE REQUIREMENT

	 	8.1	 	Overview
	 
	 	8.2	 	New or Returning Participant’s Compliance Requirement
	 
	 	8.3	 	Waivers and Extensions to Waivers
	 
	 	8.4	 	Short-Term Exceptions

 

 

Company Vehicle Operations

Program Supplement for Senior Management Vehicle Program (SMVP) Drivers

	1.	 	PURPOSE OF THE SENIOR MANAGEMENT VEHICLE PROGRAM (SMVP)
	 
	 	 	The purpose of the Senior Management Vehicle Program (SMVP) is to increase exposure of
GM vehicles by allowing senior management to drive company-owned vehicles of their
preference. Members of senior management are encouraged to use their assigned vehicles as a
means to promote GM’s diverse line of products.
	 
	2.	 	PARTICIPATION

	 	2.1	 	SMVP Participation Waiver (Opt-out)
	 
	 	 	 	Participation in the SMVP is optional. If an eligible participant decides to
opt-out of the program, a Participation Waiver Request form (CVO-011) must be
completed. This form is available on the Forms page and SMVP page of the CVO website.

	3.	 	CVO ONLINE DRIVER ORIENTATION
	 
	 	 	To ensure consistent communication of applicable program policies and responsibilities,
participants are required to complete the CVO Online Driver Orientation and acknowledge
program compliance during the orientation. The Online Driver Orientation is required for all
new PEP and SMVP participants, as well as any PEP or SMVP participant returning from an ISP
assignment after an absence of more than one year. In addition, any PEP or SMVP participant
who has been on medical leave, extended absence, or FMLA for more than one year will also be
required to complete the orientation.
	 
	 	 	The web-based orientation can be accessed through the Company Vehicle Operations website at
http://cvo.gm.com. All participants who are required to complete the Online Driver
Orientation will receive a notice via e-mail, which will contain their access code and a
direct link to the orientation program. Participants will have 30 days from the day they
received the notice to complete the Online Driver Orientation.
	 
	 	 	The program is also available for use on a voluntary basis. Those interested in viewing the
Online Driver Orientation may send an e-mail, including their full name and e-mail address,
to cvo.administration7@gm.com. Shortly after the e-mail is received, a response will be sent
to the e-mail address provided containing a login name and access code. Access for this
login name will remain active for a 30-day period.
	 
	4.	 	PROGRAM ADMINISTRATION FEE REQUIREMENT
	 
	 	 	SMVP participants are charged a monthly Program Administration Fee, one-half of which is
withheld semi-monthly as a payroll deduction. The administration fee collected from SMVP and
PEP participants is used to offset a portion of the SMVP/PEP program costs, which include the
following:

	 	•	 	Inventory carrying costs
	 
	 	•	 	Collision and liability coverage
	 
	 	•	 	Licensing and titling
	 
	 	•	 	Fuel and fluids costs

 

 

Company Vehicle Operations

Program Supplement for Senior Management Vehicle Program (SMVP) Drivers

	 	•	 	Personnel to administer the program, including pre-delivery inspections and vehicle switches
	 
	 	•	 	Personal property and use tax on inventory
	 
	 	•	 	Lease/maintenance costs for the property required to store incoming and outgoing
vehicles (i.e., the regional centers)

The Corporation periodically reviews the overall program expense and determines when the
administrative fee amount should be adjusted.

	5.	 	VEHICLE ASSIGNMENT

	 	5.1	 	Vehicle Selection
	 
	 	 	 	SMVP participants can select the vehicle they will be assigned by completing the
SMVP Vehicle Preferences form (CVO-021). See the Model Year PEP and GM
Employee Purchase Programs Product Availability Matrix on the Reference Materials
page of the CVO website for information on Marketing constraints. SMVP participants
will be advised of any production constraints for their selected vehicle by their CVO
vehicle coordinator.
	 
	 	5.2	 	Assignment Period
	 
	 	 	 	SMVP vehicles are to be assigned and driven for a minimum of 90 days regardless of
mileage. The 90-day vehicle in-service period may not be reduced or increased to
accommodate an eligible purchaser’s personal circumstances. However, the assignment
period may be adjusted as a result of GM business directives or by circumstances such
as GM shutdowns, GM holidays, and the availability of replacement vehicles for SMVP
drivers.
	 
	 	5.3	 	SMVP Participation During Leave Of Absence
	 
	 	 	 	SMVP participants may continue to participate in the SMVP during the following
types of leaves of absence (provided the participant is still able to safely operate
the assigned vehicle and complies with all program requirements):

	 	•	 	Leave of absence which is not initiated by the employee (for example,
disability)

(No longer than 12 months)
	 
	 	•	 	Family and Medical Leave Act (FMLA) or Dependent Care Leave of Absence

(No longer than 6 months)
	 
	 	 	 	Participants who are planning to take a leave of absence for FMLA or Dependent Care
may request to continue SMVP participation during their leave for up to the 6-month
maximum by submitting a Family and Medical Leave Act (FMLA) or Dependent Care
Leave of Absence Product Evaluation Program (PEP) Agreement form (CVO-047) to
their business unit Human Resources representative.

Fuel expenses incurred during the leaves of absence are at the expense of the employee.
However, the Corporation will continue to bear the cost of an oil change, window
washing fluid, wiper replacement and vehicle washes during the leave.

 

 

Company Vehicle Operations

Program Supplement for Senior Management Vehicle Program (SMVP) Drivers

	6.	 	IMPUTED INCOME
	 
	 	 	Tax laws require GM to impute income to SMVP participants for the benefit they derive
from the personal (non-business) use of SMVP vehicles. In order to comply with this
obligation, appropriate amounts of income are imputed in the compensation SMVP participants
are paid at the end of each month. The specific amount of income imputed to an individual
SMVP participant during any particular month is based on the dealer net value of the vehicle
assigned to that driver on a particular day of that month, as reflected in CVMS (Company
Vehicle Management System).
	 
	 	 	SMVP participants are given additional compensation to offset taxes (“gross-up”) related to
the use of assigned vehicles they drive, up to a certain maximum dealer net value. The SMVP
participants are responsible for the expense of personal taxes on imputed income resulting
from any incremental value in the excess of the set maximum dealer net value.
	 
	7.	 	DRIVE AND BUY
	 
	 	 	SMVP participants are allowed to purchase/lease two company-owned vehicles (any
combination of D&B or tagged) each calendar year. Many participants utilize the D&B option
to comply with the PEP Biennial Purchase/Lease Requirement, which also applies to the SMVP.
In this circumstance, it is necessary for a participant to place their D&B order early enough
to have the vehicle produced, shipped, evaluated and purchased/leased two years from their
last purchase or lease date. SMVP participants may designate a vehicle for D&B purposes by
submitting a Senior Management Vehicle Program (SMVP) Vehicle Request Form (CVO-045).
	 
	 	 	Information on D&B product availability and restriction can be accessed on the Reference
Materials page of the CVO website by clicking on the link Model Year PEP and GM Employee
Purchase Programs Product Availability Matrix.
	 
	 	 	Generally, when a D&B vehicle has been received and prepped for delivery by a CVO vehicle
exchange facility, the SMVP participant who ordered the D&B will be scheduled for a vehicle
exchange. The replaced vehicle will be re-assigned to another assigned driver to complete
the assignment period, if needed.
	 
	 	 	D&B vehicles are GM inventory intended for eventual sale as an unaltered GM product.
Participants should not alter or add accessories to their assigned D&B vehicle (i.e., trailer
hitch, oversized mirrors, etc.).
	 
	 	 	To check the status of a D&B order, participants should call the Drive and Buy Status Hot
Line at (313)-667-7457 or they can contact their CVO coordinator.
	 
	 	 	If it becomes necessary to cancel a D&B order/vehicle “tag”, a participant must submit a
PEP Request to Cancel Tag on Drive and Buy Vehicle form (CVO-046) to the appropriate
CVO Region Assistant Manager. The form is available in the Forms section of the CVO website.
	 
	 	 	If a SMVP participant cancels a D&B order/vehicle “tag” twice within a 24-month period, the
participant may not place a D&B order for 36 months from the date the CVO Region Assistant
Manager signs off on the second occurrence. The participant will retain the requirement to
purchase/lease a vehicle under provisions of the Biennial Purchase/Lease Requirement. (See
section 8. BIENNIAL PURCHASE / LEASE REQUIREMENT.)
	 
	 	 	A cancelled D&B order/vehicle “tag” will be included and counted within the prescribed
24-month period if:

 

 

Company Vehicle Operations

Program Supplement for Senior Management Vehicle Program (SMVP) Drivers

	 	1.	 	The participant ordered, was assigned and drove the D&B vehicle, thus “benefiting
from the use of a vehicle of their choosing” according to Federal tax regulations
and
	 
	 	2.	 	The reason for dropping the tag was other than:

	 	•	 	Major mechanical problems (validated by warranty history of the vehicle)
	 
	 	•	 	Vehicle damage (validated by Incident Report claim submitted to ESIS)
	 
	 	•	 	Job transfer to another state
	 
	 	•	 	Job transferred overseas (ISP assignment)
	 
	 	•	 	Circumstances beyond the participant’s control (i.e., life event change, divorce, etc.)

D&B vehicles are sold as “used vehicles” and, as such, are not expected to be free of all
evidence of ordinary use. Therefore, minor cosmetic vehicle damage, such as surface
scratches or “dimples”, will not be repaired by GM prior to the sale of the vehicle and may
not be used as a valid justification for a participant to cancel purchase of a D&B vehicle.

See General Policy Handbook for U.S. Assigned Drivers, section 13. VEHICLE REPLACEMENT WHEN
ASSIGNED VEHICLE REQUIRES REPAIR, for policy regarding vehicle exchange when a currently
assigned vehicle requires repair.

	8.	 	BIENNIAL PURCHASE / LEASE REQUIREMENT

	 	8.1	 	Overview
	 
	 	 	 	The PEP Biennial Purchase/Lease Requirement policy, which applies to both the PEP
and SMVP, requires participants to:

	 	•	 	Purchase or lease a current or immediate past model year GM vehicle for their
family’s/household’s personal use at least once every two years and
	 
	 	•	 	Be in compliance at all times by retaining the purchased/leased vehicle until
replaced with another current or immediate past model year GM vehicle by 2 years
from their last purchase/lease date on record or sooner*

(See General Policy Handbook for U.S. Assigned Drivers, section 7.4 Family / Household
Members, for definition of “family/household member(s)”.) (“Current model year” is
defined as the latest Vehicle Identification Number (VIN) model year of a vehicle make
or model.)

 

	
(*A “sooner” purchase/lease date will reset the beginning of the next 2-year
compliance measurement period to that date.) The assignment of a SMVP vehicle is not
intended to avoid the need for a personal family/household vehicle.

The method of attaining compliance is at the discretion of the participant. A
participant may choose to purchase/lease from one of the following GM Vehicle Purchase
Program options: Company-Owned (Drive and Buy or “tagged”) or GMS (GM Out-of Stock). A
participant may also elect to satisfy their requirement by purchasing/leasing a GM
vehicle on a retail basis. Participants who intend to meet the Biennial Purchase/Lease

 

 

Company Vehicle Operations

Program Supplement for Senior Management Vehicle Program (SMVP) Drivers

	 	 	 	Requirement through a lease are reminded that the requirement applies regardless of the
lease term into which they enter.
	 
	 	 	 	For participants who choose to comply with the Biennial Purchase/Lease Requirement
using the Drive and Buy program (see section 7. DRIVE AND BUY), it is necessary that
they order a vehicle early enough to have it produced, driven and purchased/leased by
two years from their last purchase/lease date on record. Participants should consider
the availability of their desired vehicle when making their purchase/lease plans. High
demand vehicles are limited in their availability and long in their production lead
time. Ordering a high demand vehicle or new model and subsequently learning there is
limited possibility of owning it by the participant’s required purchase/lease date is
not an acceptable reason for deviation from the Biennial Purchase/Lease Requirement.
	 
	 	 	 	The PEP/SMVP vehicle retention policy, which requires a participant to retain for
family/household use a current or immediate past model vehicle at all times, should not
be confused with the GM Employee Vehicle Purchase Program (EVPP) retention policy that
applies to purchased/leased GMS or used Company-Owned vehicles. Vehicles
purchased/leased through the VPP must be retained in accordance with the requirements
of the VPP’s Rules and Guidelines, in effect at the time of vehicle purchase/lease.
The VPP Rules and Guidelines can be accessed through the GM Family First
website or on the Employee Vehicle Purchase Program page of the CVO
website.
	 
	 	 	 	When a SMVP participant satisfies the Biennial Purchase/Lease Requirement through the
purchase/lease of a company-owned vehicle through the Drive and Buy option or through
the Company-Owned Vehicle Request System, the purchase information is automatically
updated into the Company Vehicle Management System (CVMS). In this case, there is no
need for the participant to submit a compliance notification form.
	 
	 	 	 	When a SMVP participant satisfies the Biennial Purchase/Lease Requirement through the
purchase/lease or other acquisition of a current or immediate past model year GM
vehicle, which is not a company-owned vehicle, they must submit a PEP Biennial
Purchase/Lease Requirement Compliance form (CVO-040) to CVO Administration, as
indicated on the form.
	 
	 	 	 	CVO monitors participant compliance with the Biennial Purchase/Lease Requirement based
on the date on record for the participant’s last purchase or lease. Non-compliant
participants, who are notified by CVO during the compliance verification process, must
verify their compliance within 30 days of the notification by submission of form
CVO-040. A participant who does not submit their compliance information within 30 days
is required to return their assigned vehicle to their CVO Region office. In the case
of a field driver in the CVO National Region, they are required to return their
assigned vehicle and keys to the dealer from which the vehicle was originally obtained
and notify their CVO contact.
	 
	 	 	 	A participant, who had been removed from the SMVP due to non-compliance with the
Biennial Purchase/Lease Requirement, is ineligible to participate in the SMVP for a
period of 90 days from the date they returned their assigned vehicle. After the 90-day
ineligibility period, the participant, who becomes compliant and has submitted form
CVO-040, should contact their vehicle coordinator to schedule a vehicle assignment to
resume participation.
	 
	 	8.2	 	New or Returning Participant’s Compliance Requirement

 

 

Company Vehicle Operations

Program Supplement for Senior Management Vehicle Program (SMVP) Drivers

	 	 	 	While the Biennial Purchase/Lease Requirement policy requires a participant to be
in compliance at all times, a new participant or one that is returning (e.g.,
repatriating from an ISP assignment) has a six-month grace period from the date of
their program eligibility to become compliant.
	 
	 	 	 	Based on their date of eligibility to participate in the SMVP, a new or returning
participant should decide the best method to ensure compliance within the six-month
grace period. For example, it may not be feasible to order a Drive and Buy vehicle due
to end-of-model production, vehicle order cut-off dates, etc. Therefore, the best
method may be GMS or some other option to satisfy their requirement.
	 
	 	 	 	When a new or returning participant satisfies the Biennial Purchase/Lease Requirement
through GMS or other option (not through purchase/lease of a company-owned vehicle)
they must submit a PEP Biennial Purchase/Lease Requirement Compliance form
(CVO-040).
	 
	 	 	 	In the event a new or returning participant is in jeopardy of a significant financial
hardship as the result of entering into a lease (which expires later than the six-month
requirement) prior to being notified of their appointment to PEP/SMVP, they should
contact CVO Administration at (313)-667-7458 to discuss their situation. The current
leased vehicle may meet the Biennial Purchase/Lease Requirement.
	 
	 	 	 	It should be noted that having a Drive and Buy vehicle ordered but not purchased at the
end of the six-month grace period does not put a participant in compliance.
	 
	 	 	 	Note: The compliance policy for new participants also applies to participants whose
Biennial Purchase/Lease Requirement waivers are not extended.
	 
	 	8.3	 	Waivers and Extensions to Waivers
	 
	 	 	 	Adherence to the Biennial Purchase/Lease Requirement may not be appropriate in all
circumstances. For example, there may be no other adult licensed drivers in a
participant’s family/household or the other licensed drivers in the family/household
are also provided a company vehicle by their employer. However, the Biennial
Purchase/Lease Requirement must be complied with if the spouse or qualified same-sex
domestic partner is self-employed or effectively his or her own employer. In such
circumstances, a participant may request a waiver from the purchase/lease requirement
by submitting a PEP Participant’s Request for Waiver/Exception to the Biennial
Purchase/Lease Requirement form (CVO-050).
	 
	 	 	 	Participants with approved Biennial Purchase/Lease Requirement waivers on file are
required to confirm each year that the circumstance, which previously warranted an
approved waiver, continues to exist. If the same circumstance continues to exist, the
participant must submit a PEP Biennial Purchase/Lease Requirement Participant’s
Waiver Continuation Statement form (CVO-051), 12 months from the date on their last
submitted form.
	 
	 	 	 	Participants who no longer qualify for a waiver are permitted up to six months from the
date of the condition, which qualified them for the waiver ceases to exist to comply
with the Biennial Purchase/Lease Requirement. If compliance is fulfilled through GMS
or other option (which is not through purchase/lease of a company-owned vehicle) the
participant must submit a PEP Biennial Purchase/Lease Requirement Compliance form

 

 

Company Vehicle Operations

Program Supplement for Senior Management Vehicle Program (SMVP) Drivers

	 	 	 	(CVO-040). CVO Administration should be notified at (313)-667-7458 when a
waiver condition changes.
	 
	 	 	 	Please note that participants who qualify for a waiver to the Biennial Purchase/Lease
Requirement and who do not have their own vehicle insurance may be subject to personal
financial exposure if they drive a vehicle that is not owned by GM. (See General
Policy Handbook for U.S. Assigned Drivers, section 9.6 Risk to Assigned Drivers Who Do
Not Own and Insure a Personal Vehicle.)
	 
	 	8.4	 	Short-Term Exceptions
	 
	 	 	 	Participants who believe they have a valid reason for not meeting their compliance
verification date (two years from their last purchase/lease date) must submit a PEP
Participant’s Request for Waiver/Exception to the Biennial Purchase/Lease Requirement
form (CVO-050).
	 
	 	 	 	A short-term exception to the Biennial Purchase/Lease Requirement is permissible when
an unanticipated condition prevents delivery of an intended purchase/lease vehicle in
an ordinary and reasonable timeframe, for example, an unforeseen delay in production
scheduling or vehicles damaged in transit.
	 
	 	 	 	A short-term exception is not permissible for circumstances caused by participants,
such as ordering a limited production vehicle with known delivery constraints or
failing to place a vehicle order with enough time to allow for order processing,
production scheduling, manufacturing and shipping to the point of service.
Circumstances with regard to improper timing for placing vehicle orders are expected to
be limited to those beyond a participant’s control.

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