Document:

exv10w3

 

EXHIBIT 10.3

EXECUTION COPY

GLOBAL SETTLEMENT AGREEMENT

BETWEEN

DELPHI CORPORATION,

on behalf of itself and certain of its subsidiaries and Affiliates,

AND

GENERAL MOTORS CORPORATION

DATED SEPTEMBER 6, 2007

 

 

Table of Contents

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	RECITALS
	 	 	 	 	1	 
	ARTICLE I DEFINITIONS	 	 	4	 
	Section 1.01
	 	“Active Splinter EPBO”	 	 	4	 
	Section 1.02
	 	“Actual HMO and DHMO Premiums”	 	 	4	 
	Section 1.03
	 	“Actual Prescription Drug PBM Rebate Amount”	 	 	4	 
	Section 1.04
	 	“Additional Releasing Parties”	 	 	4	 
	Section 1.05
	 	“Affiliates”	 	 	5	 
	Section 1.06
	 	“Bankruptcy Code”	 	 	5	 
	Section 1.07
	 	“Bankruptcy Court”	 	 	5	 
	Section 1.08
	 	“Bankruptcy Rules”	 	 	5	 
	Section 1.09
	 	“Benefit Guarantees”	 	 	5	 
	Section 1.10
	 	“Benefit Guarantee Term Sheets”	 	 	5	 
	Section 1.11
	 	“Carrier Administrative Fees”	 	 	5	 
	Section 1.12
	 	“Chapter 11 Cases”	 	 	5	 
	Section 1.13
	 	“Completion Costs”	 	 	5	 
	Section 1.14
	 	“Confirmation Order”	 	 	5	 
	Section 1.15
	 	“Continuing Agreements”	 	 	6	 
	Section 1.16
	 	“Covered Employees”	 	 	6	 
	Section 1.17
	 	“DAS”	 	 	6	 
	Section 1.18
	 	“Debtors”	 	 	6	 
	Section 1.19
	 	“Delphi”	 	 	6	 
	Section 1.20
	 	“Delphi Affiliate Parties”	 	 	6	 
	Section 1.21
	 	“Delphi-Related Parties”	 	 	6	 
	Section 1.22
	 	“Delphi HRP”	 	 	6	 
	Section 1.23
	 	“Delphi Pension Trust”	 	 	6	 
	Section 1.24
	 	“Delphi Surviving Claims”	 	 	6	 
	Section 1.25
	 	“DIP Agent”	 	 	6	 
	Section 1.26
	 	“DIP Credit Agreement”	 	 	6	 
	Section 1.27
	 	“DIP Lenders”	 	 	7	 
	Section 1.28
	 	“Disclosure Statement”	 	 	7	 
	Section 1.29
	 	“Disclosure Statement Approval Date”	 	 	7	 
	Section 1.30
	 	“Effective Date”	 	 	7	 
	Section 1.31
	 	“EPBO”	 	 	7	 
	Section 1.32
	 	“EPCA”	 	 	7	 
	Section 1.33
	 	“Equity Committee”	 	 	7	 
	Section 1.34
	 	“ERISA”	 	 	7	 
	Section 1.35
	 	“Final Order”	 	 	7	 
	Section 1.36
	 	“First Tranche Date”	 	 	8	 
	Section 1.37
	 	“GM”	 	 	8	 
	Section 1.38
	 	“GM HRP”	 	 	8	 
	Section 1.39
	 	“GM IUE-CWA Payment”	 	 	8	 

 

 

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	Section 1.40
	 	“GM Pension Trust”	 	 	8	 
	Section 1.41
	 	“GM Proof of Claim”	 	 	8	 
	Section 1.42
	 	“GM Purchase Order”	 	 	8	 
	Section 1.43
	 	“GM-Related Parties”	 	 	8	 
	Section 1.44
	 	“GM Surviving Claims”	 	 	8	 
	Section 1.45
	 	“Gross Liability”	 	 	8	 
	Section 1.46
	 	“IAM”	 	 	8	 
	Section 1.47
	 	“IAM MOU”	 	 	8	 
	Section 1.48
	 	“IAM Releasing Parties”	 	 	9	 
	Section 1.49
	 	“IBEW”	 	 	9	 
	Section 1.50
	 	“IBEW MOUs”	 	 	9	 
	Section 1.51
	 	“IBEW Releasing Parties”	 	 	9	 
	Section 1.52
	 	“Incremental PRP Obligation”	 	 	9	 
	Section 1.53
	 	“Initial UAW SAP”	 	 	9	 
	Section 1.54
	 	“IP License”	 	 	9	 
	Section 1.55
	 	“IRS”	 	 	9	 
	Section 1.56
	 	“IRS Ruling”	 	 	9	 
	Section 1.57
	 	“IUE-CWA”	 	 	9	 
	Section 1.58
	 	“IUE-CWA Benefit Guarantee”	 	 	9	 
	Section 1.59
	 	“IUE-CWA Benefit Guarantee Term Sheet”	 	 	10	 
	Section 1.60
	 	“IUE-CWA Buy Down Amount”	 	 	10	 
	Section 1.61
	 	“IUE-CWA Buy Down Amount Invoice”	 	 	10	 
	Section 1.62
	 	“IUE-CWA Buy Out Payments”	 	 	10	 
	Section 1.63
	 	“IUE-CWA MOU”	 	 	10	 
	Section 1.64
	 	“IUE-CWA-Related Reimbursements”	 	 	10	 
	Section 1.65
	 	“IUE-CWA Reimbursement Invoice”	 	 	10	 
	Section 1.66
	 	“IUE-CWA Releasing Parties”	 	 	10	 
	Section 1.67
	 	“IUE-CWA Retirement Incentives”	 	 	10	 
	Section 1.68
	 	“IUE-CWA SAP”	 	 	10	 
	Section 1.69
	 	“IUOE”	 	 	10	 
	Section 1.70
	 	“IUOE MOUs”	 	 	10	 
	Section 1.71
	 	“IUOE Releasing Parties”	 	 	11	 
	Section 1.72
	 	“Labor MOUs”	 	 	11	 
	Section 1.73
	 	“Medical Claims Reimbursement Amount”	 	 	11	 
	Section 1.74
	 	“Medicare Part D Subsidy Receipts”	 	 	11	 
	Section 1.75
	 	“Net Liability Transfer”	 	 	11	 
	Section 1.76
	 	“Non-Represented Employees Releasing Parties”	 	 	11	 
	Section 1.77
	 	“Non-Represented EPBO”	 	 	11	 
	Section 1.78
	 	“Non-Represented and Splinter EPBO Payment”	 	 	11	 
	Section 1.79
	 	“Non-Represented Employees Term Sheet”	 	 	11	 
	Section 1.80
	 	“Normal Cost”	 	 	11	 
	Section 1.81
	 	“Note”	 	 	11	 
	Section 1.82
	 	“OPEB”	 	 	11	 
	Section 1.83
	 	“Ordinary Course Relationship”	 	 	11	 
	Section 1.84
	 	“Outstanding Issues”	 	 	12	 
	Section 1.85
	 	“Party” or “Parties”	 	 	12	 

ii

 

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	Section 1.86
	 	“PBM”	 	 	12	 
	Section 1.87
	 	“PBO”	 	 	12	 
	Section 1.88
	 	“Petition Date”	 	 	12	 
	Section 1.89
	 	“Plan”	 	 	12	 
	Section 1.90
	 	“Plan Investors”	 	 	12	 
	Section 1.91
	 	“Preliminary Transferred Asset Amount”	 	 	12	 
	Section 1.92
	 	“Professional”	 	 	12	 
	Section 1.93
	 	“Proof of Claim”	 	 	12	 
	Section 1.94
	 	“PVB”	 	 	12	 
	Section 1.95
	 	“Reimbursement Period”	 	 	12	 
	Section 1.96
	 	“Restructuring Agreement”	 	 	13	 
	Section 1.97
	 	“Retired Splinter EPBO”	 	 	13	 
	Section 1.98
	 	“Second Tranche Date”	 	 	13	 
	Section 1.99
	 	“Section 365 Motion”	 	 	13	 
	Section 1.100
	 	“Separation”	 	 	13	 
	Section 1.101
	 	“Settlement Dispute”	 	 	13	 
	Section 1.102
	 	“Splinter Union Employees”	 	 	13	 
	Section 1.103
	 	“Standard GM Terms”	 	 	13	 
	Section 1.104
	 	“Transfer Date”	 	 	13	 
	Section 1.105
	 	“Transferred Asset Amount”	 	 	13	 
	Section 1.106
	 	“True-up Amount”	 	 	13	 
	Section 1.107
	 	“UAW”	 	 	13	 
	Section 1.108
	 	“UAW Benefit Guarantee”	 	 	14	 
	Section 1.109
	 	“UAW Benefit Guarantee Term Sheet”	 	 	14	 
	Section 1.110
	 	“UAW Buy Down Payments”	 	 	14	 
	Section 1.111
	 	“UAW Buy Out Payments”	 	 	14	 
	Section 1.112
	 	“UAW MOU”	 	 	14	 
	Section 1.113
	 	“UAW Reimbursement Invoice”	 	 	14	 
	Section 1.114
	 	“UAW-Related Reimbursements”	 	 	14	 
	Section 1.115
	 	“UAW Retirement Incentives”	 	 	14	 
	Section 1.116
	 	“UAW Releasing Parties”	 	 	14	 
	Section 1.117
	 	“UAW SAP”	 	 	14	 
	Section 1.118
	 	“UCC”	 	 	14	 
	Section 1.119
	 	“Unsecured Claims”	 	 	14	 
	Section 1.120
	 	“USW”	 	 	15	 
	Section 1.121
	 	“USW Benefit Guarantee”	 	 	15	 
	Section 1.122
	 	“USW Benefit Guarantee Term Sheet”	 	 	15	 
	Section 1.123
	 	“USW Buy Out Payments”	 	 	15	 
	Section 1.124
	 	“USW MOUs”	 	 	15	 
	Section 1.125
	 	“USW-Related Reimbursements”	 	 	15	 
	Section 1.126
	 	“USW Reimbursement Invoice”	 	 	15	 
	Section 1.127
	 	“USW Releasing Parties”	 	 	15	 
	Section 1.128
	 	“USW Retirement Incentives”	 	 	15	 
	Section 1.129
	 	“Warranty Settlement Agreement”	 	 	15	 
	ARTICLE II COMMITMENTS REGARDING OPEB AND PENSION OBLIGATIONS	 	 	16	 
	Section 2.01
	 	The Labor MOUs	 	 	16	 

iii

 

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	Section 2.02
	 	Certain Payments Between GM and Delphi Relating To Hourly Employee Benefits.	 	 	16	 
	Section 2.03
	 	Treatment of Delphi’s Pension Plans	 	 	25	 
	ARTICLE III OTHER GM CONTRIBUTIONS TO LABOR MATTERS	 	 	29	 
	Section 3.01
	 	Assumption of Labor-Related Obligations	 	 	30	 
	Section 3.02
	 	UAW	 	 	30	 
	Section 3.03
	 	IUE-CWA	 	 	32	 
	Section 3.04
	 	USW	 	 	36	 
	ARTICLE IV RELEASES AND CLAIMS TREATMENT	 	 	38	 
	Section 4.01
	 	Release of GM-Related Parties.	 	 	38	 
	Section 4.02
	 	Release of Delphi-Related Parties and the Delphi Affiliate Parties	 	 	41	 
	Section 4.03
	 	Surviving Claims.	 	 	42	 
	Section 4.04
	 	Cash to Be Paid to GM	 	 	43	 
	ARTICLE V IMPLEMENTATION	 	 	44	 
	Section 5.01
	 	Bankruptcy Court Filing	 	 	44	 
	Section 5.02
	 	Actions Concerning Debtors’ Section 365 Motion	 	 	44	 
	Section 5.03
	 	Actions Concerning Debtors’ 1113/1114 Motions	 	 	44	 
	ARTICLE VI CONDITIONS TO EFFECTIVENESS	 	 	44	 
	 
	ARTICLE VII MISCELLANEOUS	 	 	46	 
	Section 7.01
	 	Resolution of Pending Setoff Issues	 	 	46	 
	Section 7.02
	 	No Undisclosed Agreements or Commitments	 	 	46	 
	Section 7.03
	 	Termination	 	 	46	 
	Section 7.04
	 	No Offset	 	 	47	 
	Section 7.05
	 	Governing Law; Jurisdiction; Venue	 	 	48	 
	Section 7.06
	 	Dispute Resolution	 	 	48	 
	Section 7.07
	 	Joint Communication Program	 	 	48	 
	Section 7.08
	 	No Solicitation	 	 	48	 
	Section 7.09
	 	Negotiations Not Admissible	 	 	49	 
	Section 7.10
	 	Specific Performance	 	 	49	 
	Section 7.11
	 	Representations and Warranties of the Debtors and GM	 	 	49	 
	Section 7.12
	 	Waiver; Modification; Amendment	 	 	49	 
	Section 7.13
	 	Binding Effect; Assignments	 	 	50	 
	Section 7.14
	 	Third Party Beneficiaries	 	 	50	 
	Section 7.15
	 	Notices	 	 	50	 
	Section 7.16
	 	Waiver of Right to Trial by Jury	 	 	52	 
	Section 7.17
	 	Service of Process	 	 	52	 
	Section 7.18
	 	Interpretation	 	 	52	 
	Section 7.19
	 	Expenses	 	 	53	 
	Section 7.20
	 	Entire Agreement; Parties’ Intentions; Construction	 	 	53	 
	Section 7.21
	 	Severability	 	 	53	 
	Section 7.22
	 	Headings	 	 	53	 
	Section 7.23
	 	Affiliates	 	 	53	 
	Section 7.24
	 	Counterparts	 	 	54	 

iv

 

EXHIBITS

	 	 	 
	Exhibit A

	 	Warranty Settlement Agreement
	 
	 	 
	Exhibit B

	 	IP License
	 
	 	 
	Exhibit C

	 	Master Restructuring Agreement
	 
	 	 
	Exhibit D

	 	PHI Protection Agreement
	 
	 	 
	Exhibit E

	 	Outstanding Delphi Invoices for which GM Has Withheld Payment Due To Outstanding Prepetition Activities

 

 

GLOBAL SETTLEMENT AGREEMENT

          This Settlement Agreement (the “Agreement”), is entered into as of September 6, 2007,
by and between Delphi Corporation (“Delphi”), on behalf of itself and its subsidiaries and
Affiliates operating as debtors and debtors in possession in the Chapter 11 Cases (together with
Delphi, the “Debtors”), and General Motors Corporation (“GM”). Each of the Debtors
and GM is referred to herein individually as a “Party,” and collectively, as the
“Parties.” As used herein, the phrases “this Agreement,” “hereto,” “hereunder,” and
phrases of like import shall mean this Agreement. All capitalized terms shall have the meanings
ascribed to them in Article I hereof. Unless otherwise defined in this Agreement, capitalized
terms in Articles II and III hereof shall have the meanings as set forth in the Labor MOUs.

RECITALS

          WHEREAS, on October 8, 2005 and October 14, 2005, the Debtors commenced the Chapter 11 Cases
in the Bankruptcy Court for the purpose of restructuring their businesses and related financial
obligations pursuant to an overall transformation strategy that would incorporate the following
structural components:

	 	(i)	 	Modification of Delphi’s labor agreements;
	 
	 	(ii)	 	Allocation of responsibilities between Delphi and GM concerning
(a) certain legacy obligations, including various pension and other
post-employment benefit obligations; (b) costs associated with the
transformation of the Debtors’ business (including the provision of financial
and other forms of support by GM in connection with certain businesses that
Delphi will retain and certain businesses that Delphi intends to sell or wind
down); (c) the restructuring of ongoing contractual relationships; and (d) the
amount and treatment of GM’s claims in the Chapter 11 Cases;
	 
	 	(iii)	 	Streamlining of Delphi’s product portfolio to capitalize on
its world-class technology and market strengths and making the necessary
manufacturing alignment with its new focus;
	 
	 	(iv)	 	Transformation of Delphi’s salaried work force in keeping with
a sustainable cost structure and streamlined product portfolio; and
	 
	 	(v)	 	Resolution of Delphi’s pension issues.

          WHEREAS, on March 22, 2006 Delphi, GM, and the UAW entered into the Initial UAW SAP, which was
authorized and approved by the Bankruptcy Court by order entered on May 12, 2006 (Docket No. 3754);

GSA-1

 

          WHEREAS, on March 31, 2006, Delphi filed a motion under Bankruptcy Code sections 1113 and 1114
seeking to reject the majority of its collective bargaining agreements with its key unions and to
modify retiree benefits (Docket No. 3035);

          WHEREAS, on March 31, 2006, the Debtors filed the Section 365 Motion seeking authority to
reject 5,472 supply contracts with GM pursuant to section 365 of the Bankruptcy Code (Docket No.
3033);

          WHEREAS, on June 5, 2006, Delphi, GM, and the UAW entered into a supplement to the Initial UAW
SAP to provide hourly UAW-represented employees with certain expanded options under the Initial UAW
SAP, which was authorized and approved by the Bankruptcy Court by order entered on July 7, 2006
(Docket No. 4461);

          WHEREAS, on June 16, 2006, Delphi, GM, and the IUE-CWA entered into the IUE-CWA SAP to
provide, with financial support from GM, an attrition program to certain of the Debtors’
IUE-CWA-represented employees, which was authorized and approved by the Bankruptcy Court by order
entered on July 7, 2006 (Docket No. 4461);

          WHEREAS, the Debtors, the UCC, and the Equity Committee have asserted that they may have
causes of action against GM and defenses to any claims GM may have against the Debtors, including
but not limited to those set forth in the GM Proof of Claim, arising from the Separation,
post-Separation conduct by GM, and other matters;

          WHEREAS, on June 22, 2007, Delphi, GM, and the UAW entered into the UAW MOU, which was
ratified by Delphi’s UAW-represented employees on June 28, 2007 and the UAW MOU was authorized and
approved by the Bankruptcy Court by order entered on July 19, 2007 (Docket No. 8693) and is
attached to the Plan as Exhibit 7.21(a);

          WHEREAS, on June 22, 2007, Delphi, GM, and the UAW entered into the UAW Benefit Guarantee Term
Sheet regarding (i) the freezing of the Delphi HRP, (ii) Delphi’s cessation of OPEB, and (iii) the
terms of a consensual triggering and application of the UAW Benefit Guarantee; the UAW Benefit
Guarantee Term Sheet is annexed as Attachment B to the UAW MOU and was authorized and approved by
the Bankruptcy Court by order entered on July 19, 2007 (Docket No. 8693);

          WHEREAS, on July 31, 2006, GM, on behalf of itself and certain of its Affiliates and
subsidiaries, filed the GM Proof of Claim;

          WHEREAS, on July 31, 2007, Delphi, GM, and each of the IAM and IBEW entered into the IAM MOU
and the IBEW MOUs, respectively, and on August 1, 2007, Delphi, GM, and the IUOE entered into the
IUOE MOUs, each of which has been ratified by the Splinter Union Employees; the IAM MOU, the IBEW
MOUs, and the IUOE MOU were authorized and approved by the Bankruptcy Court by order entered on
August 16, 2007 (Docket No. 9107) and are attached to the Plan as Exhibits 7.21(d)-(i);

GSA-2

 

          WHEREAS, on July 31, 2007, Delphi, GM, and each of the IAM, IBEW, and IUOE entered into the
“Term Sheet – Delphi Cessation and GM Provision of OPEB,” which is annexed as Attachment B to each
of the IAM MOU, IBEW MOU, and IUOE MOU and was authorized and approved by the Bankruptcy Court by
order entered on August 16, 2007 (Docket No. 9107);

          WHEREAS, on August 3, 2007, Delphi and GM entered into the Non-Represented Employees Term
Sheet which was authorized and approved by the Bankruptcy Court by order entered on August 16, 2007
(Docket No. 9107);

          WHEREAS, on August 5, 2007, Delphi, GM, and the IUE-CWA entered into the IUE-CWA MOU, which
was ratified by Delphi’s IUE-CWA-represented employees on August 18, 2007, which was authorized and
approved by the Bankruptcy Court by order entered on August 16, 2007 (Docket No. 9106) and is
attached to the Plan as Exhibit 7.21(b);

          WHEREAS, on August 5, 2007, Delphi, GM, and the IUE-CWA entered into the IUE-CWA Benefit
Guarantee Term Sheet regarding (i) the freezing of the Delphi HRP, (ii) Delphi’s cessation of OPEB,
and (iii) the terms of a consensual triggering and application of the IUE-CWA Benefit Guarantee;
the IUE-CWA Benefit Guarantee Term Sheet is annexed as Attachment B to the IUE-CWA MOU and was
authorized and approved by the Bankruptcy Court by order entered on August 16, 2007 (Docket No.
9106);

          WHEREAS, on August 16, 2007, Delphi, GM, and the USW entered into the USW MOUs, which were
ratified by Delphi’s USW-represented employees on August 31, 2007; the USW MOUs were authorized and
approved by the Bankruptcy Court by order entered on August 29, 2007 (Docket No. 9169) and are
attached to the Plan as Exhibit 7.21(c);

          WHEREAS, on August 16, 2007, Delphi, GM, and the USW entered into the USW Benefit Guarantee
Term Sheet regarding (i) the freezing of the Delphi HRP, (ii) Delphi’s cessation of OPEB, and (iii)
the terms of a consensual triggering and application of the USW Benefit Guarantee; the USW Benefit
Guarantee Term Sheet is annexed as Attachment B to the USW MOU and was authorized and approved by
the Bankruptcy Court by order entered on August 29, 2007 (Docket No. 9169);

          WHEREAS, on August 14, 2007, Delphi and GM entered into the Warranty Settlement Agreement to
resolve, compromise, and/or settle certain outstanding warranty claims and issues; the Warranty
Settlement Agreement is subject to Bankruptcy Court approval and is attached hereto as Exhibit
A;

          WHEREAS, on September ___, 2007, Delphi and GM entered into the IP License, which is subject to
Bankruptcy Court approval and which is attached hereto as Exhibit B;

          WHEREAS, contemporaneously herewith, the Parties are entering into the Restructuring
Agreement, which is attached hereto as Exhibit C;

GSA-3

 

          WHEREAS, on the date hereof the Debtors have filed with the Bankruptcy Court a disclosure
statement and a proposed Plan, to which this Agreement is attached as Exhibit 7.20(a), and to which
the Restructuring Agreement is attached as Exhibit 7.20(b);

          WHEREAS, by this Agreement the Parties desire to resolve all outstanding issues among them
that have arisen or may hereafter arise prior to the effective date of this Agreement and the Plan
(collectively, the “Outstanding Issues”);

          WHEREAS, resolution of the Outstanding Issues requires the Parties to make certain
commitments, take certain actions, and receive certain consideration pursuant to, and subject to
the terms and conditions of, this Agreement, the Non-Represented Employee Term Sheet, the Labor
MOUs, the UAW SAP, the IUE-CWA SAP, the IP License, the Warranty Settlement Agreement, the
Restructuring Agreement, and the Plan.

          NOW, THEREFORE, in consideration for the mutual promises and agreements, the receipt and
adequacy of which are mutually acknowledged, each Party hereby agrees as follows:

ARTICLE I

DEFINITIONS

          Section 1.01 “Active Splinter EPBO” shall have the meaning ascribed to such term in section
2.02(e)(ii)(2) hereof.

          Section 1.02 “Actual HMO and DHMO Premiums” shall have the meaning ascribed to such term in
section 2.02(a)(ii) hereof.

          Section 1.03 “Actual Prescription Drug PBM Rebate Amount” shall have the meaning ascribed
to such term in section 2.02(a)(iv) hereof.

          Section 1.04 “Additional Releasing Parties” shall mean (i) creditors of any of the Debtors
and current and former holders of equity interests in Delphi, (ii) the Creditors’ Committee and all
current and former members of the Creditors’ Committee in their respective capacities as such, (iv)
the Equity Committee and all current and former members of the Equity Committee in their respective
capacities as such, (v) the DIP Agent in its capacity as such, (vi) the DIP Lenders solely in their
capacities as such, (vii) all Professionals, (viii) the Plan Investors, and (ix) with respect to
each of the above-named persons or entities, and only in their aforementioned capacities, such
person’s or entity’s Affiliates, current and former principals, officers, directors, agents,
employees, advisors, and representatives (including any attorneys, financial advisors, investment
bankers, and other professionals retained by such persons or entities), in their capacities as
such, but shall not include the Delphi-Related Parties, the Delphi Affiliate Parties, the UAW
Releasing Parties, the IUE-CWA Releasing Parties, the USW Releasing Parties, the IAM Releasing
Parties, the IBEW Releasing Parties, the IUOE Releasing Parties, and the Non-Represented Employees
Releasing Parties.

GSA-4

 

          Section 1.05 “Affiliates” shall mean, with respect to any entity, any other entity directly
or indirectly, controlling, controlled by or under direct or indirect common control with such
entity.

          Section 1.06 “Bankruptcy Code” shall mean the Bankruptcy Reform Act of 1978, as amended and
codified in title 11 of the United States Code, 11 U.S.C. §§ 101-1330, as amended and in effect on
the Petition Date.

          Section 1.07 “Bankruptcy Court” shall mean the United States Bankruptcy Court for the
Southern District of New York or such other court as may have jurisdiction over the Chapter 11
Cases.

          Section 1.08 “Bankruptcy Rules” shall mean the Federal Rules of Bankruptcy Procedure and
the Official Bankruptcy Forms, as amended, the Federal Rules of Civil Procedure, as amended, as
applicable to the Chapter 11 Cases or proceedings therein, and the Local Rules of the Bankruptcy
Court, as applicable to the Chapter 11 Cases or proceedings therein, as the case may be.

          Section 1.09 “Benefit Guarantees” shall mean the UAW Benefit Guarantee, the IUE Benefit
Guarantee, and the USW Benefit Guarantee, collectively.

          Section 1.10 “Benefit Guarantee Term Sheets” shall mean, collectively, the UAW Benefit
Guarantee Term Sheet, the IUE-CWA Benefit Guarantee Term Sheet, and the USW Benefit Guarantee Term
Sheet, the IAM, IBEW, and IUOE “Term Sheet-Delphi Cessation and GM Provision of OPEB,” and the
Non-Represented Term Sheet.

          Section 1.11 “Carrier Administrative Fees” shall have the meaning ascribed to such term in
section 2.02(a)(iii) hereof.

          Section 1.12 “Chapter 11 Cases” shall mean the chapter 11 cases of the Debtors pending in
the Bankruptcy Court and being jointly administered with one another under Case No. 05-44481, and
the phrase “Chapter 11 Case” when used with reference to a particular Debtor shall mean the
particular case under Chapter 11 of the Bankruptcy Code commenced by such Debtor in the Bankruptcy
Court.

          Section 1.13 “Completion Costs” shall have the meaning ascribed to such term in section
2.02(a)(i) hereof.

          Section 1.14 “Confirmation Order” shall mean the order entered by the Bankruptcy Court
confirming the Plan under section 1129 of the Bankruptcy Code and which shall, among other things,
contain a finding by the Bankruptcy Court in connection with the feasibility of the Plan that
Delphi has or will have on the Effective Date the financial wherewithal to consummate all
transactions contemplated by section 2.03(c) hereof in accordance with the terms of such section
and shall direct Delphi to consummate such transactions.

GSA-5

 

          Section 1.15 “Continuing Agreements” shall mean the agreements that will be assumed,
ratified, or reinstated pursuant to section 5.01 of the Restructuring Agreement and any agreements
entered into by any Delphi-Related Party and/or Delphi Affiliate Party, on the one hand, and any GM
Related Party, on the other hand, after October 8, 2005.

          Section 1.16 “Covered Employees” shall have the meaning ascribed to such term in each of
the Benefit Guarantee Term Sheets.

          Section 1.17 “DAS” shall mean Delphi Automotive Systems LLC, a Delaware limited liability
company.

          Section 1.18 “Debtors” shall have the meaning ascribed to such term in the Recitals.

          Section 1.19 “Delphi” shall have the meaning ascribed to such term in the Preamble.

          Section 1.20 “Delphi Affiliate Parties” shall mean Affiliates of the Debtors (other than
the Delphi-Related Parties), and each of such Affiliate’s current and former principals, officers,
directors, agents, employees, advisors, and representatives (including any attorneys, financial
advisors, investment bankers, and other professionals retained by such persons or entities) in
their respective capacities.

          Section 1.21 “Delphi-Related Parties” shall mean the Debtors, the estates of the Debtors as
created under Bankruptcy Code section 541, the Delphi HRP, the Delphi Health Care Program for
Hourly Employees, the Delphi Life and Disability Benefits Program for Hourly Employees, any other
Delphi pension or welfare benefit plan, and each of their respective current and former principals,
officers, directors, agents, employees, advisors, and representatives (including any attorneys,
financial advisors, investment bankers, and other professionals retained by such persons or
entities) in their respective capacities.

          Section 1.22 “Delphi HRP” shall mean the Delphi Hourly-Rate Employees Pension Plan.

          Section 1.23 “Delphi Pension Trust” shall have the meaning ascribed to such term in section
2.03(c)(vi) hereof.

          Section 1.24 “Delphi Surviving Claims” shall have the meaning ascribed to such term in
section 4.03(a) hereof.

          Section 1.25 “DIP Agent” shall mean the administrative agent for the DIP Lenders as defined
in the DIP Credit Agreement.

          Section 1.26 “DIP Credit Agreement” shall mean that certain Revolving Credit, Term Loan and
Guaranty Agreement, dated as of January 9, 2007, by and among the Debtors, the DIP Agent, and the
DIP Lenders, which was executed by the Debtors in connection

GSA-6

 

with the DIP Facility, as amended, supplemented, or otherwise modified from time to time, and all
documents executed in connection therewith.

          Section 1.27 “DIP Lenders” shall mean the lenders and issuers from time to time party to
the DIP Credit Agreement.

          Section 1.28 “Disclosure Statement” shall mean the written disclosure statement (including
all schedules thereto or referenced therein) that relates to the Plan, as approved by the
Bankruptcy Court pursuant to section 1125 of the Bankruptcy Code and Bankruptcy Rule 3017, as such
disclosure statement may be amended, modified, or supplemented from time to time.

          Section 1.29 “Disclosure Statement Approval Date” shall mean the date on which the
Bankruptcy Court enters an order approving the Disclosure Statement.

          Section 1.30 “Effective Date” shall mean the Business Day determined by the Debtors as
provided in [Article 12.3] of the Plan on which all conditions to the consummation of the Plan set
forth in [Article 12.2] of the Plan have been either satisfied or waived and the day upon which the
Plan is substantially consummated.

          Section 1.31 “EPBO” shall have the meaning ascribed to such term in section 2.02(e) hereof.

          Section 1.32 “EPCA” shall mean that certain Equity Purchase and Commitment Agreement, dated
August 3, 2007, between Delphi and the Plan Investors, as in effect on the date hereof and without
giving effect to any subsequent amendments, waivers, or other modifications thereto.

          Section 1.33 “Equity Committee” shall mean the official committee of equity security
holders appointed pursuant to section 1102(a) of the Bankruptcy Code in the Chapter 11 Cases on
April 28, 2006, as reconstituted from time to time.

          Section 1.34 “ERISA” shall have the meaning ascribed to such term in section 2.01(f)
hereof.

          Section 1.35 “Final Order” shall mean an order or judgment, the operation or effect of
which has not been reversed, stayed, modified or amended, and as to which order or judgment (or any
reversal, stay, modification, or amendment thereof) (a) the time to appeal, seek certiorari, or
request reargument or further review or rehearing has expired and no appeal, petition for
certiorari, or request for reargument or further review or rehearing has been timely filed, or (b)
any appeal that has been or may be taken or any petition for certiorari or request for reargument
or further review or rehearing that has been or may be filed has been resolved by the highest court
to which the order or judgment was appealed, from which certiorari was sought, or to which the
request was made, and no further appeal or petition for certiorari or request for reargument or
further review or rehearing has been or can be taken or granted.

GSA-7

 

          Section 1.36 “First Tranche Date” shall have the meaning ascribed to such term in section
2.03(c)(iii)(2) hereof.

          Section 1.37 “GM” shall have the meaning ascribed to such term in the Preamble.

          Section 1.38 “GM HRP” shall mean the General Motors Hourly-Rate Employees Pension Plan.

          Section 1.39 “GM IUE-CWA Payment” shall have the meaning ascribed to such term in section
3.03(b) hereof.

          Section 1.40 “GM Pension Trust” shall have the meaning ascribed to such term in section
2.03(c)(vi) hereof.

          Section 1.41 “GM Proof of Claim” shall mean proof of claim no. 13659 filed by GM on August
6, 2006 in the Chapter 11 Cases.

          Section 1.42 “GM Purchase Order” shall mean a purchase order issued by GM or any and all of
its Affiliates and accepted by DAS according to Standard GM Terms, it being agreed by the Parties
that DAS shall be deemed to have accepted all such purchase orders accepted by the Delphi-Related
Parties pursuant to Standard GM Terms; provided, however, that no purchase orders issued or to be
issued by GM or any of its Affiliates to any Affiliate of Delphi that is not a Delphi-Related Party
shall be a GM Purchase Order.

          Section 1.43 “GM-Related Parties” shall mean GM, each of its Affiliates, the GM HRP, the GM
Health Care Program for Hourly Employees, the GM Life and Disability Benefits Program for Hourly
Employees, any other GM pension or welfare benefit plan, and each of their respective current and
former principals, officers, directors, agents, employees, advisors, and representatives (including
any attorneys, financial advisors, investment bankers, and other professionals retained by such
persons or entities) in their respective capacities.

          Section 1.44 “GM Surviving Claims” shall have the meaning ascribed to such term in section
4.03(b) hereof.

          Section 1.45 “Gross Liability” shall have the meaning ascribed to such term in section
2.03(c)(iii)(1) hereof.

          Section 1.46 “IAM” shall mean, collectively, the International Association of Machinists
and Aerospace Workers and its local unions that represent or formerly represented employees and
former employees of the applicable Debtor entity.

          Section 1.47 “IAM MOU” shall mean the “IAM-Delphi GM Memorandum of Understanding-Delphi
Restructuring” entered into as of July 31, 2007, as approved by the Bankruptcy Court on August 16,
2007, by and among Delphi, GM, and the IAM, including all attachments and exhibits thereto and all
IAM-Delphi collective bargaining agreements referenced therein as modified.

GSA-8

 

          Section 1.48 “IAM Releasing Parties” shall mean the IAM, all employees and former employees
of Delphi-Related Parties represented or formerly represented by the IAM, and all persons or
entities with claims derived from or related to any relationship with such employees or former
employees of Delphi-Related Parties.

          Section 1.49 “IBEW” shall mean, collectively, the International Brotherhood of Electrical
Workers and its local unions that represent or formerly represented employees and former employees
of the applicable Debtor entity.

          Section 1.50 “IBEW MOUs” shall mean the “IBEW-Delphi Powertrain-GM Memorandum of
Understanding – Delphi Restructuring” and the “IBEW-Delphi Electronics & Safety – GM Memorandum of
Understanding – Delphi Restructuring,” entered into as of July 31, 2007, as approved by the
Bankruptcy Court on August 16, 2007, by and among Delphi, GM, and the IBEW, including all
attachments and exhibits thereto and all IBEW-Delphi collective bargaining agreements referenced
therein as modified.

          Section 1.51 “IBEW Releasing Parties” shall mean the IBEW, all employees and former
employees of Delphi-Related Parties represented or formerly represented by the IBEW, and all
persons or entities with claims derived from or related to any relationship with such employees or
former employees of Delphi-Related Parties.

          Section 1.52 “Incremental PRP Obligation” shall have the meaning ascribed to such term in
section 2.03(c)(v) hereof.

          Section 1.53 “Initial UAW SAP” shall mean the “UAW GM Delphi Special Attrition Program”
entered into as of March 22, 2006, by and among Delphi, GM, and the UAW and subsequently clarified
by the parties on March 27, 2006.

          Section 1.54 “IP License” shall mean the intellectual property license agreement between
Delphi and GM, dated as of September ___, 2007.

          Section 1.55 “IRS” shall have the meaning ascribed to such term in section 2.03(c)(ii)
hereof.

          Section 1.56 “IRS Ruling” shall have the meaning ascribed to such term in section
2.03(c)(ii) hereof.

          Section 1.57 “IUE-CWA” shall mean the International Union of Electronic, Electrical,
Salaried, Machine and Furniture Workers-Communication Workers of America and its applicable local
unions.

          Section 1.58 “IUE-CWA Benefit Guarantee” shall mean the Benefit Guarantee agreement between
GM and the IUE-CWA, dated November 13, 1999, and signed November 14, 1999.

GSA-9

 

          Section 1.59 “IUE-CWA Benefit Guarantee Term Sheet” shall mean the agreement among Delphi,
GM, and the IUE-CWA, dated as of August 5, 2007, and annexed as Attachment B to the IUE-CWA MOU.

          Section 1.60 “IUE-CWA Buy Down Amount” shall have the meaning ascribed to such term in
section 3.03(a)(iv) of this Agreement.

          Section 1.61 “IUE-CWA Buy Down Amount Invoice” shall have the meaning ascribed to such term
in section 3.03(a)(iv)(2) of this Agreement.

          Section 1.62 “IUE-CWA Buy Out Payments” shall mean the buy out payments required to be made
by Delphi pursuant to Section C.3.b of the IUE-CWA MOU.

          Section 1.63 “IUE-CWA MOU” shall mean the IUE-CWA-Delphi-GM Memorandum of Understanding –
Delphi Restructuring, entered into as of August 5, 2007, as approved by the Bankruptcy Court on
August 16, 2007, among the IUE-CWA, Delphi, and GM, and all attachments and exhibits thereto and
the IUE-CWA-Delphi National Agreement referenced therein as modified.

          Section 1.64 “IUE-CWA-Related Reimbursements” shall have the meaning ascribed to such term
in section 3.03(e)(i) hereof.

          Section 1.65 “IUE-CWA Reimbursement Invoice” shall have the meaning ascribed to such term
in section 3.03(e)(iv) hereof.

          Section 1.66 “IUE-CWA Releasing Parties” shall mean the IUE-CWA, all employees and former
employees of Delphi-Related Parties represented or formerly represented by the IUE-CWA, and all
persons or entities with claims derived from or related to any relationship with such employees or
former employees of Delphi-Related Parties.

          Section 1.67 “IUE-CWA Retirement Incentives” shall mean the $35,000 retirement incentives
to be offered by Delphi pursuant to Section C.3.a of the IUE-CWA MOU and Attachment C thereto.

          Section 1.68 “IUE-CWA SAP” shall mean the “IUE-CWA-GM-Delphi Special Attrition Program”
entered into as of June 16, 2006, by and among Delphi, GM, and the IUE-CWA.

          Section 1.69 “IUOE” shall mean collectively the International Union of Operating Engineers
and its local unions that represent or formerly represented employees and former employees of the
applicable Debtor entity.

          Section 1.70 “IUOE MOUs” shall mean the “IOUE Local 18S-Delphi-GM Memorandum of
Understanding – Delphi Restructuring,” the “IUOE Local 101S-Delphi-GM Memorandum of Understanding –
Delphi Restructuring,” and the “IUOE Local 832S-Delphi-GM Memorandum of Understanding – Delphi
Restructuring,” all entered into as of August 1, 2007, as approved by the Bankruptcy Court on
August 16, 2007, by and among Delphi, GM, and

GSA-10

 

the IUOE, including all attachments and exhibits thereto and all IUOE-Delphi collective bargaining
agreements referenced therein as modified.

          Section 1.71 “IUOE Releasing Parties” shall mean the IUOE, all employees and former
employees of Delphi-Related Parties represented or formerly represented by the IUOE, and all
persons or entities with claims derived from or related to any relationship with such employees or
former employees of the Delphi-Related Parties.

          Section 1.72 “Labor MOUs” shall mean the UAW MOU, the IUE-CWA MOU, the USW MOUs, the IAM
MOU, the IBEW MOUs, and IUOE MOUs, collectively.

          Section 1.73 “Medical Claims Reimbursement Amount” shall have the meaning ascribed to such
term in section 2.02(a)(i) hereof.

          Section 1.74 “Medicare Part D Subsidy Receipts” shall have the meaning ascribed to such
term in section 2.02(a)(v) hereof.

          Section 1.75 “Net Liability Transfer” shall have the meaning ascribed to such term in
section 2.03(c)(iii) hereof.

          Section 1.76 “Non-Represented Employees Releasing Parties” shall mean all non-represented
hourly employees and former hourly employees of Delphi-Related Parties, and all persons or entities
with claims derived from or related to any relationship with such employees or former employees of
the Delphi-Related Parties.

          Section 1.77 “Non-Represented EPBO” shall have the meaning ascribed to such term in section
2.02(e)(ii)(1) hereof.

          Section 1.78 “Non-Represented and Splinter EPBO Payment” shall have the meaning ascribed to
such term in section 2.02(e) hereof.

          Section 1.79 “Non-Represented Employees Term Sheet” shall mean the “Term Sheet — Delphi
Cessation and GM Provision of OPEB for Certain Unrepresented Delphi Employee and Retirees” entered
into on or about July 31, 2007, by and among Delphi and GM.

          Section 1.80 “Normal Cost” shall have the meaning ascribed to such term in section
2.03(b)(iii) hereof.

          Section 1.81 “Note” shall have the meaning ascribed to such term in section 2.03(c)(iv)
hereof.

          Section 1.82 “OPEB” shall mean post-retirement health care benefits and employer-paid
post-retirement basic life insurance benefits, collectively.

          Section 1.83 “Ordinary Course Relationship” shall mean the ordinary course
customer/supplier obligations owing between any Delphi-Related Party or any Delphi Affiliate Party,
on the one hand, and any GM-Related Party, on the other hand, and matters related to,

GSA-11

 

environmental, recall, product liability, and warranty obligations, but excluding matters relating
to the agreements entered into in connection with the Separation and Settled Claims (as defined in
the Warranty Settlement Agreement) other than the Environmental Matters Agreement (as defined in
the Restructuring Agreement).

          Section 1.84 “Outstanding Issues” shall have the meaning ascribed to such term in the
Recitals hereof.

          Section 1.85 “Party” or “Parties” shall have the meanings ascribed to such terms in
the Preamble.

          Section 1.86 “PBM” shall have the meaning ascribed to such term in section 2.02(a)(iv)
hereof.

          Section 1.87 “PBO” shall have the meaning ascribed to such term in section 2.03(c)(iii)
hereof.

          Section 1.88 “Petition Date” shall mean, as applicable, (a) October 8, 2005 with respect to
those Debtors filing their petitions for relief in the Bankruptcy Court on such date, or (b)
October 14, 2005 with respect to those Debtors filing their petitions for relief in the Bankruptcy
Court on such date.

          Section 1.89 “Plan” shall mean the chapter 11 plan of reorganization proposed by the
Debtors in the Chapter 11 Cases, the terms of which are acceptable to GM which was filed with the
Bankruptcy Court on September 6, 2007 and to which this Agreement is attached as Appendix 7.20(b).

          Section 1.90 “Plan Investors” shall mean A-D Acquisition Holdings, LLC, Harbinger Del-Auto
Investment Company, Ltd., Merrill Lynch, Pierce, Fenner & Smith Incorporated, UBS Securities LLC,
Goldman Sachs & Co., and Pardus DPH Holding LLC.

          Section 1.91 “Preliminary Transferred Asset Amount” shall have the meaning ascribed to such
term in section 2.03(c)(iii)(2)(A) hereof.

          Section 1.92 “Professional” shall mean any Person retained in the Chapter 11 Cases by
separate Bankruptcy Court order pursuant to sections 327 and 1103 of the Bankruptcy Code or
otherwise; provided, however, that Professional does not include any Person retained pursuant to
the Ordinary Course Professionals Order.

          Section 1.93 “Proof of Claim” shall mean the proof of claim, as amended, filed by GM, on
behalf of itself and certain of its Affiliates and subsidiaries, in the Chapter 11 Cases.

          Section 1.94 “PVB” shall have the meaning ascribed to such term in section 2.03(c)(v)(1)
hereof.

          Section 1.95 “Reimbursement Period” shall have the meaning ascribed to such term in section
2.02(a) hereof.

GSA-12

 

          Section 1.96 “Restructuring Agreement” shall mean the Master Restructuring Agreement
between Delphi and GM, dated as of September 6, 2007.

          Section 1.97 “Retired Splinter EPBO” shall have the meaning ascribed to such term in
section 2.02(e)(ii)(3) hereof.

          Section 1.98 “Second Tranche Date” shall have the meaning ascribed to such term in section
2.03(c)(iii)(2)(B) hereof.

          Section 1.99 “Section 365 Motion” shall mean the motion filed by the Debtors on March 31,
2006, with the Bankruptcy Court seeking authority to reject 5,472 supply contracts with GM pursuant
to section 365 of the Bankruptcy Code.

          Section 1.100 “Separation” shall mean the transactions among GM, the Debtors, and Delphi
Affiliate Parties occurring in connection with the entry into the Master Separation Agreement
between Delphi and GM on January 1, 1999 and the transfer by GM and certain of its Affiliates of
assets, liabilities, manufacturing sites, and employees relating to the former Delphi business
sector of GM to certain of the Debtors and Delphi Affiliate Parties.

          Section 1.101 “Settlement Dispute” shall mean one or more defaults or disputes between GM
and any of the Debtors in which (i) the aggregate amount in controversy (including the monetary
value or impact of any injunctive relief) exceeds $500,000 (five hundred thousand dollars) and (ii)
the claims asserted require the application or construction of this Agreement, the attachments or
exhibits hereto (except for the Restructuring Agreement), or the provisions of the Plan relating to
the subject matter of this Agreement. By way of clarification, it is not intended by the Parties
that the term Settlement Dispute shall include commercial disputes that arise in the ordinary
course of business with respect to the various current and future contracts pursuant to which any
of the Debtors and/or the Delphi Affiliate Parties supplies components, component systems, goods,
or services to any of the GM-Related Parties.

          Section 1.102 “Splinter Union Employees” shall mean the Delphi hourly employees or retirees
who are or were represented by the IAM, the IBEW, or the IUOE.

          Section 1.103 “Standard GM Terms” shall mean the GM Terms and Conditions as revised in
September 2004.

          Section 1.104 “Transfer Date” shall have the meaning ascribed to such term in section
2.03(c)(iii) hereof.

          Section 1.105 “Transferred Asset Amount” shall have the meaning ascribed to such term in
section 2.03(c)(iii)(1) hereof.

          Section 1.106 “True-up Amount” shall have the meaning ascribed to such term in section
2.03(c)(iii)(2)(B) hereof.

          Section 1.107 “UAW” means the International Union, United Automobile, Aerospace and
Agricultural Implement Workers of America and its applicable local unions.

GSA-13

 

          Section 1.108 “UAW Benefit Guarantee” shall mean the Benefit Guarantee agreement between GM
and the UAW, dated as of September 30, 1999.

          Section 1.109 “UAW Benefit Guarantee Term Sheet” shall mean the agreement among Delphi, GM,
and the UAW, dated June 22, 2007, and annexed as Attachment B to the UAW MOU.

          Section 1.110 “UAW Buy Down Payments” shall mean the buy down payments required to be made
by Delphi pursuant to Section C.5.c of the UAW MOU.

          Section 1.111 “UAW Buy Out Payments” shall mean the buy out payments required to be made by
Delphi pursuant to Section C.5.b of the UAW MOU.

          Section 1.112 “UAW MOU” shall mean the “UAW-Delphi-GM Memorandum of Understanding – Delphi
Restructuring” entered into as of June 22, 2007, as approved by the Bankruptcy Court on July 19,
2007, by and among Delphi, GM, and the UAW, including all attachments and exhibits thereto and the
UAW-Delphi National Agreement referenced therein as modified.

          Section 1.113“ UAW Reimbursement Invoice” shall have the meaning ascribed to such term in
section 3.02(j)(iv) hereof.

          Section 1.114 “UAW-Related Reimbursements” shall have the meaning ascribed to such term in
section 3.02(j)(i) hereof.

          Section 1.115 “UAW Retirement Incentives” shall mean the $35,000 retirement incentives to
be offered by Delphi pursuant to Section C.5.a of the UAW MOU and Attachment C thereto.

          Section 1.116 “UAW Releasing Parties” shall mean the UAW, all employees and former
employees of Delphi-Related Parties represented or formerly represented by the UAW, and all persons
or entities with claims derived from or related to any relationship with such employees or former
employees of Delphi-Related Parties.

          Section 1.117 “UAW SAP” shall mean the Initial UAW SAP, as supplemented by the “Supplement
to UAW-GM-Delphi Special Attrition Program Agreement Dated March 22, 2006” entered into as of June
5, 2006, by and among Delphi, GM, and the UAW.

          Section 1.118 “UCC” shall mean the statutory committee of unsecured claimholders appointed
in the Chapter 11 Cases.

          Section 1.119 “Unsecured Claims” shall mean trade claims and other unsecured claims
(excluding unsecured funded debt claims, claims by the GM Parties, GM Surviving Claims, securities
claims, customer and environmental obligations, employee-related (excluding collective bargaining
obligations) and other obligations, and litigation exposure and other liabilities that are covered
by insurance) against the Debtors in the Chapter 11 Cases that are either (x) allowed or (y)
asserted but not yet expunged or disallowed.

GSA-14

 

          Section 1.120 “USW” shall mean collectively the United Steelworkers of America and its
local unions that represent or formerly represented the employees or former employees of the
applicable Debtor entity.

          Section 1.121 “USW Benefit Guarantee” shall mean the Benefit Guarantee agreement between GM
and the USW, dated December 13, 1999, and signed December 16 and 17, 1999.

          Section 1.122 “USW Benefit Guarantee Term Sheet” shall mean the agreement among Delphi, GM,
and the USW, dated as of August 16, 2007, and annexed as Attachment B to the USW MOUs.

          Section 1.123 “USW Buy Out Payments” shall mean the buy out payment required to be made by
Delphi pursuant to Section C.2 of the USW MOU – Home Avenue and Section C.1 of the USW MOU –
Vandalia and Attachment C thereto.

          Section 1.124 “USW MOUs” shall mean collectively the “USW-Delphi-GM Memorandum of
Understanding and Special Attrition Program – Vandalia – Delphi Restructuring” (“USW MOU –
Vandalia”) and the “USW-Delphi-GM Memorandum of Understanding – Home Avenue – Delphi Restructuring”
(“USW MOU – Home Avenue”), each entered into as of August 16, 2007, as approved by the Bankruptcy
Court on August 29, 2007, by and among Delphi, GM, and the USW, including all attachments and
exhibits thereto and all USW-Delphi collective bargaining agreements referenced therein as
modified.

          Section 1.125 “USW-Related Reimbursements” shall have the meaning ascribed to such term in
section 3.04(d)(i) hereof.

          Section 1.126 “USW Reimbursement Invoice” shall have the meaning ascribed to such term in
section 3.04(d)(iv) hereof.

          Section 1.127 “USW Releasing Parties” shall mean the USW, all employees and former
employees of Delphi-Related Parties represented or formerly represented by the USW, and all persons
or entities with claims derived from or related to any relationship with such employees or former
employees of Delphi-Related Parties.

          Section 1.128 “USW Retirement Incentives” shall mean the $35,000 retirement incentives to
be offered by Delphi pursuant to Section C.1.a of the USW- MOU — Home Avenue and Attachment C
thereto and the payments required to be made by Delphi pursuant to Section C.6 of the USW — MOU -
Home Avenue.

          Section 1.129 “Warranty Settlement Agreement” shall mean the Warranty, Settlement and
Release Agreement and Covenant Not to Sue between Delphi and GM, dated as of August 14, 2007.

GSA-15

 

ARTICLE II

COMMITMENTS REGARDING OPEB AND PENSION OBLIGATIONS

     Section 2.01 The Labor MOUs. To help facilitate the Debtors’ business, financial and
operational restructuring, the Parties have resolved certain matters concerning Delphi’s OPEB and
pension obligations by entering into the Labor MOUs and Non-Represented Term Sheet, all of which
are incorporated herein by reference as if fully set forth herein. This summary of the terms of
the Labor MOUs is qualified entirely by, and is subject to, the actual terms and conditions of the
Labor MOUs. Nothing in Article II or III hereof is intended to limit, amend, modify, or supersede
any term or condition in any of the Labor MOUs. The Labor MOUs provide, among other things, for:

               (a) the freezing in certain respects of the Delphi HRP;

               (b) Delphi’s cessation of hourly OPEB;

               (c) the extension of the period of time on or before which GM’s obligations under the GM-UAW
Benefit Guarantee and GM – USW Benefit Guarantee may be triggered;

               (d) the extension of the period of time on or before which certain of Delphi’s obligations
under the GM-Delphi Indemnification Agreement as to the UAW may be triggered;

               (e) the consensual triggering of the Benefit Guarantees and GM provision of OPEB to certain
Delphi employees and retirees in a manner which relieves Delphi’s provision of OPEB;

               (f) the transfer of certain assets and liabilities from the Delphi HRP to the GM HRP pursuant
to section 414(l) of the Internal Revenue Code of 1986, as amended (the “Code”) and Section
208 of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”); and

               (g) GM provision of OPEB as referenced in the UAW SAP, the IUE-CWA SAP, the Non-Represented
Term Sheet, and the special attrition programs negotiated with each union as part of the Labor
MOUs.

          Section 2.02 Certain Payments Between GM and Delphi Relating To Hourly Employee
Benefits.

               (a) GM Reimbursement for Delphi OPEB Costs. GM shall reimburse Delphi for Delphi’s
aggregate cash spending for all actual, documented amounts paid by Delphi to provide OPEB to hourly
retirees under the Delphi Health Care Program for Hourly Employees and the Delphi Life and
Disability Benefits Program for Hourly Employees for the period commencing on January 1, 2007 and
continuing through the Cessation Date (the

GSA-16

 

“Reimbursement Period”). The first two reimbursement payments of amounts due under
this section 2.02(a) shall be made within thirty (30) days of receipt of all of the documentation
referenced in sections 2.02(b)(i) through 2.02(b)(iii) hereof reasonably sufficient to support such
amounts and a representation from Delphi that such documentation is substantially complete and
substantially accurate in all respects. The final reimbursement payment of amounts due under this
section 2.02(a) shall be made within thirty (30) days of receipt of all of the documentation
referenced in sections 2.02(b)(i) through 2.02(b)(vi) hereof supporting such amounts and a
representation from Delphi that such documentation is substantially complete and substantially
accurate in all respects. The reimbursement amount shall be calculated as follows: the amounts
set forth in sections 2.02(a)(i), 2.02(a)(ii), 2.02(a)(iii), 2.02(c), and any other amounts that
the Parties may mutually agree in writing to include, reduced by the amounts set forth in sections
2.02(a)(iv) and 2.02(a)(v).

               (i) The actual self-insured Medical Claims (HSM, Durable Medical Equipment,
Mental Health, Substance Abuse, Prescription Drug, Dental and Vision) for hourly
retirees incurred in the Reimbursement Period and paid through the Cessation Date
plus six months; plus the estimated additional claims costs completion value (the
“Completion Costs”) for incurred but not paid claims for hourly retirees as
calculated by Watson Wyatt and agreed to by GM (the “Medical Claims
Reimbursement Amount”). No additional reimbursement shall be provided for the
value of any medical claims costs associated with payment run-out not comprehended
by the six month period and Completion Costs. GM shall reimburse Delphi for the
Medical Claims Reimbursement Amount in three payments. The first payment shall
reimburse claims incurred in the Reimbursement Period that are paid through the
Cessation Date. The second payment shall reimburse the claims incurred in the
Reimbursement Period that are paid in the three months following the Cessation Date.
The third and final payment shall reimburse the claims incurred in the
Reimbursement Period that are paid in the four to six months following the Cessation
Date plus the Completion Costs.

               (ii) The actual paid HMO and DHMO premiums for hourly retirees (the “Actual
HMO and DHMO Premiums”) for the Reimbursement Period.

               (iii) Actual administration fees paid to Delphi Health Care Program for Hourly
Employees carriers (the “Carrier Administrative Fees”) based only on Delphi
hourly retired contract counts for the Reimbursement Period; provided,
however, that for carriers whom Delphi does not pay on a per contract basis,
the Carrier Administrative Fees shall be determined by taking Delphi’s total
administrative fees paid to such carrier during the Reimbursement Period, dividing
that amount by the total population of Delphi participants serviced by the carrier
during the Reimbursement Period, and then multiplying the quotient by the total
number of retirees for whose OPEB GM is obligated to reimburse Delphi during the
Reimbursement Period.

GSA-17

 

               (iv) Allocated actual Prescription Drug Pharmacy Benefit Manager
(“PBM”) rebates (the “Actual Prescription Drug PBM Rebate Amount”)
received by Delphi from its PBM for the value of Delphi hourly retiree Prescription
Drug claims for the Reimbursement Period. The Actual Prescription Drug PBM Rebate
Amount shall consist of the amount of total PBM rebates attributable to hourly
retirees received by Delphi for claims incurred during the Reimbursement Period.
The Actual Prescription Drug PBM Rebate Amount shall be a credit against GM’s third
and final payment of the Medical Claims Reimbursement Amount referenced in section
2.02(a)(i) hereof. If the Actual Prescription Drug PBM Rebate Amount is not
available at the time the third and final payment of the Medical Claims
Reimbursement Amount referenced in section 2.02(a)(i) is due, such payment shall be
delayed until the Actual Prescription Drug PBM Rebate Amount is available;
provided, however, that no later than one hundred eighty (180) days
after GM receives the documentation referenced in sections 2.02(b)(i) through
2.02(b)(vi) (other than any incomplete or missing documentation under sections
2.02(b)(iv) and (b)(v) hereof), GM shall make an estimated payment to Delphi of the
third and final payment of the Medical Claims Reimbursement Amount, which shall be
reconciled upon receipt of any remaining documentation under sections 2.02(b)(iv)
and (b)(v) hereof.

               (v) Actual Medicare Part D subsidy receipts related to Prescription Drug claims
for Delphi hourly retirees incurred during the Reimbursement Period (the
“Medicare Part D Subsidy Receipts”). The Medicare Part D Subsidy Receipts
shall be a credit against GM’s third and final payment of the Medical Claims
Reimbursement Amount referenced in section 2.02(a)(i) hereof. If the Medicare Part
D Subsidy Receipts amount is not available at the time the third and final payment
of the Medical Claims Reimbursement Amount, referenced in section 2.02(a)(i) is due,
such payment shall be delayed until the Medicare Part D Subsidy Receipts amount is
available; provided, however, that no later than one hundred eighty
(180) days after GM receives the documentation referenced in sections 2.02(b)(i)
through 2.02(b)(vi) hereof (other than any incomplete or missing documentation under
sections 2.02(b)(iv) and (b)(v) hereof), GM shall make an estimated payment to
Delphi of the third and final payment of the Medical Claims Reimbursement Amount,
which shall be reconciled upon receipt of any remaining documentation under sections
2.02(b)(iv) and (b)(v) hereof.

               (vi) Upon final settlement of sections 2.02(a)(i), (a)(ii), (a)(iii), (a)(iv),
and (a)(v), Delphi shall advise GM of any open credits, uncollected receivables,
potential litigation settlements or other recoverable amounts directly associated
with or allocable to Delphi hourly retirees for Medical Claims incurred in the
Reimbursement Period. At that time, GM and Delphi shall establish a mutually agreed
upon process to ensure GM is reimbursed these recoverable amounts within thirty (30)
days of Delphi’s receipt of such recoveries. GM shall only be reimbursed for
credits, uncollected receivables,

GSA-18

 

potential litigation settlements, or other recoverable amounts to the extent GM
paid Delphi for the initial claim; provided, however, that where
such amounts are not tied to specific claims, the reimbursement amount shall be
determined as follows: (x) for carriers and service providers that only provide
services relating to Delphi’s hourly plan, the reimbursement amount shall be
determined by taking the amount of the credits, uncollected receivables, potential
litigation settlements, and other recoverable amounts, dividing that amount by the
total population of Delphi hourly participants, and then multiplying the quotient by
the total number of Delphi’s hourly retirees, and (y) for carriers and service
providers which provide services for both the Delphi and salaried plans, the
reimbursement amount shall be determined by taking the amount of the credits,
uncollected receivables, potential litigation settlements, and other recoverable
amounts, dividing that amount by the total population of Delphi participants, and
then multiplying the quotient by the total number of Delphi’s hourly retirees.

               (vii) Escheatment responsibility for self-insured carriers’ uncashed checks,
including those payments reimbursed by GM in section 2.02(a)(i) hereof, remain with
Delphi or its carriers. GM does not assume any responsibility for escheatments
related to the Delphi Health Care Program for Hourly Employees.

               (viii) Any hourly retiree claims appeals associated with Medical Claims or HMO
and DHMO premiums incurred in the Reimbursement Period and any retroactive
adjustments related to sections 2.02(a)(ii) and (a)(iii) hereof not comprehended in
the original billing documentation shall be aggregated and addressed once per year
following the final reimbursement payment.

               (b) Health Care Information Sharing. GM shall execute the PHI Protection Agreement, a
copy of which is attached hereto as Exhibit D. Subject to GM’s execution of the PHI
Protection Agreement, Delphi shall provide (to the extent available) GM with the eligibility
records, self-insured Medical Claims, and insured health care arrangements for Delphi retirees for
health care coverage provided by Delphi during the Reimbursement Period. The following
documentation (to the extent available), including social security numbers and all identifying
information, shall be made readily available to GM to document Delphi’s costs for the Delphi
retirees, surviving spouses and dependents:

               (i) To document all incurred and paid self-insured Medical Claims (the Medical
Claims Reimbursement Amount), Delphi shall provide to GM, as of the Cessation Date
and monthly thereafter for a period of six months, full electronic claims and
eligibility records, as available, transferred from Delphi’s data warehouse to GM’s
similar data warehouse. Delphi shall also provide to GM claims data, in a mutually
agreeable format, to document self-insured dental and vision coverages;

GSA-19

 

               (ii) To document Actual HMO and DHMO Premiums, Delphi shall provide to GM, as
of the Cessation Date, a data file listing all of the Delphi retirees enrolled for
coverage under these insured arrangements along with the plan name, family status,
and total individual monthly premium paid;

               (iii) To document Carrier Administrative Fees, Delphi shall provide GM mutually
agreed upon eligibility records supporting hourly retiree contract counts and
appropriate Carrier agreement schedules that document per contract administrative
fees;

               (iv) To document the Actual Prescription Drug PBM Rebate Amount, Delphi shall
provide PBM, banking, or other cash disbursement records to substantiate the amount
of total PBM rebates received by Delphi for claims incurred during the Reimbursement
Period and the amount of total Delphi prescription drug claims incurred during the
Reimbursement Period;

               (v) To document Final Medicare Part D Subsidy Receipts, Delphi shall provide a
data file, in a mutually agreeable format, of complete claim levels Medicare Part D
subsidy reimbursement records and rebate factors applied; and

               (vi) Delphi shall also provide the most recent documentation and audit papers
relative to claims or eligibility records along with supporting documentation on
collection of overpayments incurred but not fully collected during the Reimbursement
Period;

               (vii) GM recognizes that some of the information that Delphi will provide
pursuant to this section 2.02 is proprietary to Delphi and its carriers and
administrators. GM agrees that such information, which Delphi identifies in writing
as being proprietary, including but not limited to rebate amounts, carrier
administrative fees, and HMO/DHMO premium rates, shall not be disclosed to third
parties (other than GM’s employees, agents, and advisors) except to the extent
required by law, or to the extent such information otherwise becomes publicly
available.

               (c) Post-Retirement Basic Life Insurance Reimbursement. GM agrees that reimbursement
payments for employer paid life insurance premiums and administration of employer paid life
insurance shall be made within thirty (30) days of receipt of appropriate documentation supporting
such premiums and life insurance administration costs paid by Delphi relating to providing hourly
employer-paid post-retirement life insurance benefits for the Reimbursement Period.

               (i) Until Covered Employees can be enrolled in the GM Life and Disability
Benefits Program and the systems that support that program, Delphi shall maintain
administration of the hourly employer-paid post-retirement life insurance benefits
for employees through the current administrator (MetLife).

GSA-20

 

Delphi and its current administrator shall assist GM in the transition of
records to the GM life insurance administrator to be completed by March 1, 2008.

               (ii) Delphi shall immediately direct and use commercially reasonable efforts to
cause its life insurance carrier (MetLife) to transfer to GM current reserves as of
January 1, 2007, associated with Delphi hourly employer-paid post-retirement life
insurance.

               (iii) Delphi shall immediately direct and use commercially reasonable efforts
to cause its Optional Life, Dependent Life and Personal Accident Insurance Plan
carrier (MetLife) to transfer the Delphi Rate Reduction Reserves for the Optional
Life, Dependent Life and Personal Accident Insurance Plans to GM. The amount that
will be transferred for each Plan shall be calculated by MetLife using the
methodology agreed upon for flowbacks and check the box retirees. Upon the
transfer, GM shall assume any and all obligations from Delphi to provide the
benefits relating to the Delphi Rate Reduction Reserves for the Optional Life,
Dependent Life and Personal Accident Insurance Plans transferred.

               (d) Delphi Payments for Benefit Avoidance.

               (i) Consistent with the applicable Benefit Guarantee Term Sheet, neither
Delphi, a successor company, nor any Delphi operation divested after October 8, 2005
shall provide to Covered Employees any payments, contributions (matching or
otherwise), or accruals to any defined benefit plan, defined contribution plan, or
retiree welfare benefit plan (including, but not limited to payments, contributions,
or accruals in a retiree medical account):

                    (1) relating to pension, for the period of time the Covered Employee is
eligible to accrue credited service in the GM HRP in accordance with the applicable
Benefit Guarantee Term Sheet; and

                    (2) relating to OPEB, to any Covered Employee or other employee who attains or
can attain eligibility for GM provided or GM funded OPEB through any means;
provided, however, that UAW-represented employees shall not be
excluded solely by reason of the possibility that they could flow back to GM and,
provided further, that IUE-CWA represented employees shall not be
excluded solely by reason of the possibility that they could participate in the SEPO
(i.e., Attachment G to the IUE-CWA MOU).

               (ii) UAW-Represented Covered Employees. During the period when
UAW-represented Covered Employees accrue credited service in the GM HRP under
paragraph 8.a of the UAW Benefit Guarantee Term Sheet, Delphi shall pay GM annually,
by January 31 of each year for the preceding calendar year, an amount equal to (x)
the FAS-87 service cost for a non-elective 5.4% of wages contribution to the
Individual Retirement Plan provisions of the Delphi

GSA-21

 

HRP that, but for the UAW Benefit Guarantee Term Sheet, these Covered Employees
would otherwise be eligible for under the UAW-Delphi Supplemental Agreement dated
April 29, 2004, as amended; provided, however, that such amount
shall be adjusted for interest based on Delphi’s discount rate for FAS-87 pension
accounting, and/or (y) if Delphi provides accruals in or contributions to any other
defined benefit or defined contribution pension plan, the FAS-87 service cost of
such benefits/accruals or the amount of such contributions that, but for the UAW
Benefit Guarantee Term Sheet, such Covered Employees would otherwise be eligible
for, provided, however, that such amount shall be adjusted for
interest based on Delphi’s discount rate for FAS-87 pension accounting. Delphi
shall have no reimbursement obligation relating to the Delphi Personal Savings Plan
matching contribution that, but for the UAW Benefit Guarantee Term Sheet, these
Covered Employees would otherwise be eligible for under the UAW-Delphi Supplemental
Agreement dated April 29, 2004, as amended.

               (iii) IUE-CWA Represented Covered Employees.

                    (1) During the period IUE-CWA-represented Covered Employees accrue credited
service in the GM HRP under paragraph 8.a of the IUE-CWA Benefit Guarantee Term
Sheet, Delphi shall pay GM annually, by January 31 of each year for the preceding
calendar year, an amount equal to (x) the non-elective 7% defined contributions
based upon a standard 2,080 hour work year that these Covered Employees would
otherwise be eligible for under the Delphi Personal Savings Plan in accordance with
the IUE-CWA MOU, and/or (y) if Delphi provides accruals in or contributions to any
other defined benefit or defined contribution pension plan, the FAS-87 service cost
of such benefits/accruals or the amount of such contributions that, but for the
IUE-CWA Benefit Guarantee Term Sheet, such Covered Employees would otherwise be
eligible for.

                    (2) Commencing on the Effective Date of the IUE-CWA MOU (as defined therein),
Delphi shall pay GM annually, by January 31 of each year for the preceding year, an
amount equal to (x) the 1% defined contributions in lieu of OPEB, based upon a
standard 2,080 hour work year, that IUE-CWA Covered Employees who can attain
eligibility for GM-provided or GM-funded OPEB through any means (other than becoming
employed by GM pursuant to the SEPO attachment to the IUE-CWA MOU) would otherwise
be eligible for under the Delphi Personal Savings Plan in accordance with the
IUE-CWA MOU, but for the IUE-CWA Benefit Guarantee Term Sheet, and/or (y) if Delphi
provides accruals in or contributions to any other retiree welfare benefit plan, the
FAS-87 service cost of such benefits/accruals or the amount of such contributions
that, but for the IUE-CWA Benefit Guarantee Term Sheet, such Covered Employees would
otherwise be eligible for. Such payments shall continue until the year following
the year the last such Covered Employee separates or retires from Delphi.

GSA-22

 

               (iv) USW Represented Covered Employees.

                    (1) During the period USW-represented Covered Employees accrue credited service
in the GM HRP under paragraph 8.a of the USW Benefit Guarantee Term Sheet, Delphi
shall pay GM annually, by January 31 of each year for the preceding calendar year,
an amount equal to (x) the non-elective 7% defined contributions based upon a
standard 2,080 hour work year that these Covered Employees would otherwise be
eligible for under the Delphi Personal Savings Plan in accordance with the USW MOU,
and/or (y) if Delphi provides accruals in or contributions to any other defined
benefit or defined contribution pension plan, the FAS-87 service cost of such
benefits/accruals or the amount of such contributions that, but for the USW Benefit
Guarantee Term Sheet, such Covered Employees would otherwise be eligible for.

                    (2) Commencing on the Effective Date of the USW MOUs (as defined therein),
Delphi shall pay GM annually, by January 31 of each year for the preceding year, an
amount equal to (x) 25% of the notional accrual amount for Delphi-paid post
retirement life insurance and the retiree medical account that USW Covered Employees
who can attain eligibility for GM-provided or GM-funded OPEB through any means would
otherwise be eligible for in accordance with the USW MOUs, but for the USW Benefit
Guarantee Term Sheet, and/or (y) if Delphi provides accruals in or contributions to
any other retiree welfare benefit plan, the FAS-87 service cost of such
benefits/accruals or the amount of such contributions that, but for the USW Benefit
Guarantee Term Sheet, such Covered Employees would otherwise be eligible for. Such
payments shall continue until the year following the year the last such Covered
Employee separates or retires from Delphi.

               (v) Forecasts. By December 1 of each year (including 2007), Delphi
shall provide to GM a forecast of all payments referenced in this section 2.02(d)
that are to be made by January 31 for the following two years.

               (vi) Supporting Documentation. In conjunction with the payments
referenced in this section 2.02(d), Delphi shall provide to GM at the time of such
payment supporting documentation by individual employee.

               (e) Delphi Payment for GM Assumption of OPEB for Active and Retired Splinter Union
Employees and Active and Retired Non-Represented Hourly Employees. Consistent with Attachment
B to the IAM MOU, IBEW MOUs, and IUOE MOUs and the Non-Represented Employees Term Sheet, GM is
assuming OPEB responsibility for certain active and retired Splinter Union Employees and
non-represented hourly active and retired employees. In exchange for this, Delphi shall pay GM
within thirty (30) days of receipt of all of the documentation referenced in section 2.02(e)(i) the
amounts of the Expected Post Retirement Benefit Obligation (“EPBO”) assumed by GM for
active and retired Splinter Union Employees and non-represented hourly active and retired employees
(the “Non-Represented and Splinter EPBO Payment”).

GSA-23

 

               (i) To document the Non-Represented and Splinter EPBO Payment, GM shall provide
Delphi within ninety (90) days of the Effective Date a calculation by GM’s actuaries
(Watson Wyatt and MetLife). The EPBO shall be valued at the GM’s IUE plan value, as
measured in GM’s first OPEB valuation on or after the Effective Date.

               (ii) The Non-Represented and Splinter EPBO Payment shall be the sum of the
following:

                    (1) 100% of the EPBO assumed by GM as of or prior to the Effective Date for
active and retired non-represented hourly employees, eligible to receive OPEB from
GM (the “Non-Represented EPBO”);

                    (2) 100% of the EPBO assumed by GM as of the Effective Date for active Splinter
Union Employees (the “Active Splinter EPBO”); and

                    (3) 50% of the EPBO assumed by GM as of or prior to the Effective Date for
retired Splinter Union Employees eligible to receive OPEB from GM (the “Retired
Splinter EPBO”).

               (f) Cessation of Delphi OPEB True-up Obligations. Delphi has no obligation to make
any OPEB true-up payments for or in relation to hourly employees at business units divested from
Delphi prior to May 28, 1999 or Delphi-to-GM flowback employees regardless of when such flowback
occurred or occurs.

               (g) Audit Rights. GM and its representatives at GM’s expense shall have the right to
audit all information used to derive any calculation or payment amount referenced in this section
2.02; provided, however, that (1) GM shall provide reasonable advance written
notice of such audit and (2) such audit shall be conducted during normal business hours to the
extent feasible without unreasonably interfering with Delphi’s normal operations. Delphi’s service
providers, subject to and consistent with the applicable service provider contract, shall fully
cooperate with any such audit. Each Party’s actuaries shall have the right to review the actuarial
calculations, including underlying actuarial assumptions, for payments referenced in this section
2.02. Delphi and GM shall comply with reasonable requests from the other company’s principal
outside corporate auditors regarding this section 2.02.

               (h) Information List. Delphi shall provide to GM within ten (10) business days after
the Effective Date an initial list of the following information as of the Effective Date for all
Delphi active (with a seniority date on or before May 28, 1999) and retired hourly employees:
social security number, name, birth date, credited service, wage rate, union affiliation, and
active or retired status, and whether Delphi has them designated as a Covered Employee who can
attain eligibility for GM-provided or GM-funded OPEB through any means (other than becoming
employed by GM pursuant to the SEPO attachment to the IUE-CWA MOU or becoming a flowback pursuant
to the UAW CBA). The final determination of who is such a Covered Employee shall be made by GM.
The list shall also include the applicable

GSA-24

 

information for eligible surviving spouses of such Covered Employees. Three months after the
date the initial list is provided, Delphi shall provide a final list with the information
requested.

               (i) Offset. Notwithstanding anything to the contrary in this Agreement or the
Restructuring Agreement, any payment by GM or Delphi of any invoiced amount pursuant to this
section 2.02 shall be subject to the right of GM or Delphi, as applicable, to offset all or part of
such payment as provided in section 7.04 hereof.

          Section 2.03 Treatment of Delphi’s Pension Plans. To help facilitate the Debtors’ business
and financial restructuring, the Parties have resolved certain matters concerning Delphi’s pension
obligations by entering into the Labor MOUs, all of which are incorporated herein by reference as
if fully set forth herein. The Parties agree to the following actions with respect to Delphi’s
pension plans:

               (a) Pension Freeze. Pursuant to the Plan and the Labor MOUs, Delphi shall amend the
Delphi HRP as set forth in the Labor MOUs so as to freeze benefit accruals for future service as
soon as practicable following the Effective Date; provided, however, that the
Individual Retirement Plan provisions of the Delphi HRP shall not be frozen.

               (b) GM Reimbursement for Delphi Normal Cost Credited Service.

               (i) GM shall reimburse Delphi for the “Normal Cost” of credited service accrued
in the Delphi HRP by hourly employees (other than employees participating in the
2006 UAW or IUE-CWA Special Attrition Programs and, for employees participating in
the pre-retirement program option in the 2007 UAW, IUE-CWA, or USWA Special
Attrition Program – Transformation, other than normal cost of credited service
accrued following the commencement of the pre-retirement program period) between the
Trigger Date and the Freeze Date.

               (ii) Payment shall be made by GM to Delphi following the Freeze Date and within
thirty (30) days of receipt by GM of an agreed-upon calculation from Watson Wyatt
that sets forth the “normal cost” of such accrued credited service. The amount shall
be calculated by Watson Wyatt acting on behalf of Delphi and confirmed by Watson
Wyatt acting on behalf of GM; provided, however, that GM shall make
such payment within thirty (30) days of GM’s receipt of the original calculation
made by Watson Wyatt acting on behalf of Delphi.

               (iii) “Normal Cost” shall be defined as the current liability normal cost at
the Trigger Date (as defined under ERISA calculated at the highest allowable
interest rate) incurred by Delphi to the Delphi HRP for credited service earned by
such individuals in the specified time period less the normal cost that would have
been incurred with respect to such individuals during this time period had the
Delphi HRP been frozen as of the Trigger Date.

GSA-25

 

               (c) Transfer of Certain Pension-Related Assets and Liabilities.

               (i) Delphi and GM shall cause a transfer of pension assets and liabilities from
the Delphi HRP to the GM HRP as set forth in the Labor MOUs. This transfer is part
of the overall Delphi restructuring and is designed to improve the funding level of
the Delphi HRP. The transfer shall have no effect on accrued pension benefits for
employees who either remain in the Delphi HRP or are transferred to the GM HRP.
Such transfer shall be in the amount set forth in section 2.03(c)(iii)(1) hereof and
shall be conducted in accordance with Section 414(l) of the Code and Section 208 of
ERISA.

               (ii) IRS Ruling.

               The transfer shall be subject to the Internal Revenue Service (“IRS”) ruling
issued to Delphi and GM on May 29, 2007 related to the transfer (the “IRS Ruling”)
and the continued application of the funding waiver with respect to the Delphi HRP issued to
Delphi by the IRS on May 1, 2007, as modified by the IRS on July 13, 2007, including any
modifications to either of such rulings approved by the IRS. Delphi shall use all
commercially reasonable efforts to promptly seek any other rulings that may be required in
the future to minimize the inclusion of contributions receivable in the transfer calculation
and to otherwise minimize the level of assets to be transferred while still achieving the
full net liability transfer.

               (iii) Mechanics.

                    (1) Notwithstanding the valuation of assets and liabilities under the IRS
Ruling (including the required assumptions), it is agreed that the Net Liability
Transfer from the Delphi HRP to the GM HRP shall approximate $1.5 billion, within
$0.5 million, calculated as of the Transfer Date. For purposes of this Agreement,
the “Transfer Date” shall mean the effective date of the 414(l) transfer which shall
occur as soon as practicable in calendar year 2008 provided that the Effective Date
has occurred and in no event later than five (5) days after the occurrence of the
Effective Date. For purposes of this Agreement, the term “Net Liability Transfer”
shall be defined as the FAS 87 Projected Benefit Obligation (the “PBO”)
transferred from the Delphi HRP as of the Transfer Date, based on GM’s assumptions
and methods as of the latest measurement date for annual pension expense purposes of
the GM HRP and the discount rate as of the last day of the month when the transfer
takes place (the “Gross Liability”), less the market value of corresponding
assets calculated pursuant to Section 414(l) of the Code and the IRS Ruling using
assumptions and methods agreed to with the IRS and agreed upon by GM and Delphi
actuaries, that are transferred to the GM HRP as of the Transfer Date (the
“Transferred Asset Amount”).

                    (2) Delphi shall make the transfer of the Transferred Asset Amount in two
tranches. The first tranche shall be completed

GSA-26

 

within ten (10) days of the Transfer Date, or such later date as agreed to by
GM and Delphi (the “First Tranche Date”).

                    (A) With the first tranche, 90% of the Transferred Asset Amount
shall be transferred from the Delphi HRP to the GM HRP based on the
most recent valuation work by Delphi’s actuaries, Watson Wyatt,
projected to the Transfer Date (the “Preliminary Transferred
Asset Amount”). The Delphi HRP shall make all benefit payments
after the Transfer Date and through the First Tranche Date, and the
GM HRP shall reimburse the Delphi HRP for these benefit payments
after the First Tranche Date with applicable interest at the FAS 87
discount rate for the GM HRP used to calculate the Net Liability
Transfer. The GM HRP shall make all benefit payments after the
First Tranche Date or, if not administratively practicable, such
later date as agreed to by GM and Delphi.

                    (B) The second tranche shall be completed within five months of
the First Tranche Date, or such later date as agreed to by GM and
Delphi (the “Second Tranche Date”). The second tranche
shall consist of the remaining plan assets (the “True-up
Amount”) necessary to be transferred so that 100% of the
Transferred Asset Amount is transferred. The True-Up Amount shall
equal the amount of the 414(l) assets based on actual data as of the
Transfer Date less the Preliminary Transferred Asset Amount. The
assets transferred on the First or Second Tranche Date shall be
adjusted to reflect the Delphi HRP’s actual rate of return on assets
for the time period between the Transfer Date and the date the
assets are actually transferred to the GM HRP.

                    (3) Additional terms of the transfer, including the determination of the
participants for whom benefit liabilities and corresponding assets shall be included
in the transfer, shall be as set forth in the Benefit Guarantee Term Sheets.

               (iv) Delphi Note. On the Transfer Date, Delphi shall issue a note (the
“Note”) to GM in the principal amount of $1.5 billion, with an interest rate
to be agreed upon such that the market value of the Note will be equal to $1.5
billion. The Note shall be paid within ten (10) days of the Transfer Date. Within
ten (10) days after the date the True-up Amount is determined, the Delphi actuary
shall calculate the actual amount of the Net Liability Transfer using the actuarial
assumptions and methods described above. GM or Delphi shall pay, within ten (10)
days after determination of the Net Liability Transfer, to the other party the
difference between the Net Liability Transfer and $1.5 billion, plus applicable
interest. GM shall pay Delphi if the Net Liability Transferred is less

GSA-27

 

than $1.5 billion. Delphi shall pay GM if the Net Liability Transfer is
greater than $1.5 billion. The applicable interest rate shall be the discount rate
used to calculate the Gross Liability as of the Transfer Date. The GM HRP actuary
shall be entitled to review the calculations of the Net Liability Transfer to
confirm their reasonableness and accuracy. In the event that due to an error or
omission regarding the individuals whose assets and liabilities are transferred, any
net liability in addition to the amounts described above is subsequently transferred
to the GM HRP or returned to the Delphi HRP, Delphi or GM, as applicable, shall make
a cash payment to the other company equal to such additional amount.

               (v) Delphi Obligation for Delphi Active PRP Participants. To the
extent that active Delphi PRP participants are included in the transfer, GM shall
assume the responsibility for providing future service for this population under the
GM HRP subject to Delphi providing GM with compensation equal to the value of this
additional obligation (“Incremental PRP Obligation”) through an increase in
the value of the Note or direct cash payment on the Transfer Date. The Incremental
PRP Obligation shall equal the difference between:

                    (1) the present value of benefits (“PVB”) for Delphi PRP participants
assuming the full Delphi HRP basic benefit and early retirement supplement (and
related benefits) payable at thirty (30) years of credited service shall be earned;
and

                    (2) the PBO for Delphi PRP participants including the portion of the Delphi HRP
basic benefit and early retirement supplement (and related benefits) earned based on
credited service on the Transfer Date. For this purpose, the early retirement
supplement shall be deemed “earned” pro rata over thirty (30) years of service, even
though a participant who terminates before thirty (30) years of service generally is
not entitled to a supplement.

                    (3) The PBO and PVB referenced in this section 2.03(c)(v) shall be calculated
based on GM’s assumptions and methods as of the latest measurement date for pension
expense purposes of the GM HRP and the discount rate as of the last day of the month
in which the Transfer Date takes place.

               (vi) Description of Delphi Pension Trust. Assets of the Delphi HRP are
held in a pension trust (the “Delphi Pension Trust”) and the assets of the
GM HRP are also held in a pension trust (the “GM Pension Trust”). The
Delphi Pension Trust and the GM Pension Trust have assets invested in the same
commingled trusts and other investment vehicles. The assets involve a combination
of privately-held and publicly held securities and other investment forms. GMIMCo
shall determine, subject to Delphi’s approval, which Delphi HRP assets are
transferred on each of the First Tranche Date and Second Tranche Date. The
determination shall be in accordance with the 414(l) asset allocation of

GSA-28

 

the Delphi HRP participant liabilities to be transferred. Assets shall be
transferred in-kind in a trust-to-trust transfer.

               (vii) Tax Treatment of the Note. The Note shall be deducted by Delphi
and included in the taxable income of GM when issued.

               (d) Pension Funding. As soon as practicable following the Effective Date, Delphi
shall fund an amount that satisfies the minimum funding standard for the Delphi HRP under Code
Section 412 but in no event before the transfer of Delphi HRP liabilities under Code Section 414(l)
discussed in Section 2.03 above.

               (e) Rights to Review Calculations. Each Party’s actuaries shall have the right to
review the actuarial calculations, including underlying actuarial assumptions, for payments
referenced in this section 2.03. Delphi and GM shall comply with reasonable requests from the
other company’s principal outside corporate auditors regarding this section 2.03.

               (f) Information List. Delphi shall provide to GM within ten (10) business days after
the Effective Date an initial list of the following information as of the Effective Date for all
Delphi active (with a seniority date on or before May 28, 1999) and retired hourly employees:
social security number, name, birth date, credited service, wage rate, union affiliation, and
active or retired status, and whether Delphi has them designated as a Covered Employee. The final
determination of who is a Covered Employee shall be made by GM. The list shall also include
information regarding surviving spouses of potential Covered Employees who may have a pension
benefit under the Retirement Equity Act of 1984. Three months after the initial list is provided,
Delphi shall provide a final list with the information requested.

               (g) Offset. Notwithstanding anything to the contrary in this Agreement or the
Restructuring Agreement, any payment by GM or Delphi of any invoiced amount pursuant to this
section 2.03 shall be subject to the right of GM or Delphi, as applicable, to offset all or part of
such payment as provided in section 7.04 hereof.

ARTICLE III

OTHER GM CONTRIBUTIONS TO LABOR MATTERS

          To assist Delphi in its continued transformation to more competitive wage and benefit levels,
to address capacity, divestiture, work rules, and staffing level issues, and to better position
Delphi to retain existing business and attract new business, GM has agreed to make or hereby agrees
to make, as applicable, certain additional contributions as set forth below. All references herein
to contributions already agreed to by GM in the Restructuring Agreement, the UAW SAP, the IUE-CWA
SAP, and the Labor MOUs are qualified entirely by, and are subject to, the actual terms and
conditions of such agreements. Nothing in Article III hereof is intended to limit, amend, modify,
or supersede any term or condition in any of the Restructuring Agreement, the UAW SAP, the IUE-CWA
SAP, or the Labor MOUs.

GSA-29

 

          Section 3.01 Assumption of Labor-Related Obligations. GM is agreeing in the Restructuring
Agreement to assume certain labor-related obligations set forth in Article IV therein.

          Section 3.02 UAW. With respect to the UAW-represented employees:

               (a) UAW SAP. GM agreed in the UAW SAP to provide financial support for an attrition
program to certain UAW-represented employees as set forth therein, which support included: (i)
reimbursing Delphi for certain retirement incentives; (ii) assuming OPEB for certain
UAW-represented employees; (iii) backstopping active healthcare and life insurance coverage for
certain UAW-represented employees; and (iv) reimbursing Delphi for one-half of certain buy-out
payments actually paid by Delphi;

               (b) UAW MOU. GM agreed pursuant to the UAW MOU to provide financial support for an
additional attrition program to certain UAW-represented employees as set forth in Section C.5 of
the UAW MOU and Attachment C thereto, which support included: (i) assuming OPEB for certain
UAW-represented employees and (ii) backstopping active healthcare and life insurance coverage for
certain UAW-represented employees;

               (c) UAW Retirement Incentives. GM agrees to reimburse Delphi using the procedure set
forth in section 3.02(j) herein for the $35,000 UAW Retirement Incentives actually paid by Delphi
pursuant to Section C.5.a of the UAW MOU and Attachment C thereto;

               (d) UAW Buy Out Payments. GM agrees to reimburse Delphi using the procedure set forth
in section 3.02(j) herein for one-half of the UAW Buy Out Payments actually paid by Delphi pursuant
to Section C.5.b of the UAW MOU and Attachment C thereto;

               (e) UAW Buy Down Payments. GM agrees to reimburse Delphi using the procedure set
forth in section 3.02(j) herein for all of the UAW Buy Down Payments actually paid by Delphi
pursuant to Section C.5.c of the UAW MOU;

               (f) Flowbacks. GM agreed pursuant to the UAW MOU to provide UAW-represented
employees, who were on roll prior to October 8, 2005, without a valid flowback application on file,
a final opportunity to apply for flowback by October 1, 2007, as set forth in Section C.1 therein;

               (g) Job Opportunities. GM agreed pursuant to the UAW MOU to offer job opportunities at
GM, as set forth in Section C.2 therein, to certain UAW-represented employees who were hired after
October 18, 1999, but prior to October 8, 2005;

               (h) UAW Claim. GM agreed pursuant to the UAW MOU to settle the UAW’s claim against
Delphi, which claim Delphi has not acknowledged, by making a payment in the amount of $450 million,
which the UAW has directed to be paid directly to the DC VEBA established pursuant to the
settlement agreement approved by the court in the case of Int‘l Union, UAW, et al. v.
General Motors Corp., Civil Action No. 05-73991, in the United States District Court for the
Eastern District of Michigan; and

GSA-30

 

               (i) Costs of Pre-Retirement Program. Delphi agrees to continue to provide monthly
wage payments and active employment benefits to PRP participants pursuant to the UAW MOU.
Commencing October 1, 2007, notwithstanding the requirements of the UAW MOU, Delphi shall continue
to provide PRP participants with active health care coverage from Delphi in accordance with the
“traditional option” of its pre-October 1, 2007 hourly health care program. This level of coverage
shall be higher than that called for in the UAW-Delphi Supplemental Agreement dated April 29, 2004.
GM shall bear the financial responsibility for any difference in the level of coverage between
that which Delphi is continuing to provide per this section 3.02(i) and that which Delphi otherwise
provides to its active UAW-represented employees as of October 1, 2007. Upon the conclusion of the
GM-UAW national contract negotiations but in no event later than December 31, 2007, GM and Delphi
shall cooperate to implement an appropriate administrative fix consistent with their respective
contractual obligations regarding the level of health care for PRP participants; it being
understood that Delphi shall bear financial responsibility for the level of PRP active health care
coverage Delphi provides other active UAW represented employees as of October 1, 2007, and GM shall
bear financial responsibility only to the extent that the GM level of active health care coverage
for active GM UAW-represented employees exceeds the Delphi level.

               (j) Reimbursement Procedure. The reimbursements of the UAW Retirement Incentives, the
UAW Buy Out Payments, and the UAW Buy Down Payments shall be made according to the following
procedure:

               (i) GM shall reimburse Delphi for 100% of the UAW Retirement Incentives, 50% of
the UAW Buy Out Payments, and 100% of the UAW Buy Down Payments, as applicable, plus
100% of the incremental Delphi portion of FICA taxes paid due to the UAW Retirement
Incentives, 50% of the incremental Delphi portion of FICA taxes paid due to the UAW
Buy Out Payments, and 100% of the incremental Delphi portion of FICA taxes paid due
to the UAW Buy Down Payments, as applicable (collectively, the “UAW-Related
Reimbursements”).

               (ii) The UAW Retirement Incentives, the UAW Buy Out Payments, and the UAW Buy
Down Payments shall be made through Delphi payroll in the month that the employee
retirement or buy out is effective, or, regarding buy down, the month each required
payment is made, or as soon as possible thereafter. Delphi shall be responsible for
all information reporting obligations arising from the UAW Retirement Incentives,
the UAW Buy Out Payments, and the UAW Buy Down Payments and for remittance of all
associated tax withholding and payroll taxes to the applicable taxing authorities.

               (iii) The UAW Retirement Incentives, the UAW Buy Out Payments, and the UAW Buy
Down Payments shall be reviewed by Delphi for garnishments, child support, or other
payments for which Delphi is legally required to reduce payments to be made to an
employee. GM shall reimburse Delphi the full amount due hereunder without regard to
any legally required reduction of payments to an employee.

GSA-31

 

               (iv) The amount of the UAW-Related Reimbursements and supporting detail showing
the UAW Retirement Incentives, the UAW Buy Out Payments, and the UAW Buy Down
Payments made by Delphi shall be provided in an invoice to GM (the “UAW
Reimbursement Invoice”). The UAW Reimbursement Invoice shall be supported by
the following information regarding each Delphi employee receiving such payment:
name, social security number, CISCO code, last plant location, last employment
status, date of retirement (if applicable), retirement type code (if applicable)
(e.g. 30 & out, 85 point, 60 & 10, normal), date of separation (if applicable), the
nature and amount of the payment, payment date, roll number, and detail showing the
incremental Delphi portion of FICA tax payments made due to the UAW Retirement
Incentives, the UAW Buy Out Payments, or the UAW Buy Down Payments, as applicable.
Such UAW Reimbursement Invoice shall contain a representation that such information
is substantially complete and substantially accurate in all respects.

               (v) GM shall pay all amounts in each UAW Reimbursement Invoice that contains
all information and representations required by section 3.02(j)(iv) hereof within
thirty (30) days following the receipt by GM of each respective UAW Reimbursement
Invoice or as otherwise agreed by GM and Delphi (if the 30th day falls on a weekend
or holiday, GM shall pay Delphi on the next business day).

               (k) Audit Rights. Delphi shall (a) permit GM and/or its agents at GM’s expense to
audit all information used to derive any calculation or payment amount referenced in this section
3.02, and (b) reasonably cooperate with GM and its agents in any such audit activities in a timely
manner; provided, however, that (x) GM shall provide Delphi with reasonable advance
written notice identifying the records and information that GM intends to audit, and (y) GM shall
reasonably cooperate with Delphi and its agents in any such audit activities.

               (l) Offset. Notwithstanding anything to the contrary in this Agreement or the
Restructuring Agreement, any payment by GM of any invoiced amount pursuant to this section 3.02
shall be subject to GM’s right to offset all or part of such payment as provided in section 7.04
hereof.

          Section 3.03 IUE-CWA. With respect to the IUE-CWA-represented employees:

               (a) IUE-CWA Labor Transformation.

               (i) IUE-CWA SAP. GM agreed in the IUE-CWA SAP to provide financial
support for an attrition program to certain IUE-CWA-represented employees as set
forth therein, which support included: (1) assuming OPEB for certain
IUE-CWA-represented employees; (2) backstopping active healthcare and life insurance
coverage for certain IUE-CWA-represented

GSA-32

 

employees; (3) reimbursing Delphi for certain retirement incentives; and (4)
reimbursing Delphi for one-half of certain buy-out payments actually paid by Delphi.

               (ii) IUE-CWA MOU. GM agreed pursuant to the IUE-CWA MOU to provide
financial support for an attrition program for certain IUE-CWA-represented employees
as set forth in Section C.3 of the IUE-CWA MOU and Attachment C thereto, which
support included: (1) assuming OPEB for certain IUE-CWA-represented employees; and
(2) backstopping active healthcare and life insurance coverage for certain
IUE-CWA-represented employees.

               (iii) SEPO Opportunities. GM agreed pursuant to the IUE-CWA MOU to
offer SEPO Opportunities to all current active IUE-CWA Employees hired prior to
October 18, 1999 (other than those IUE-CWA Employees employed at the Gadsden Site)
as set forth in Attachment G of the IUE-CWA MOU.

               (iv) IUE-CWA Buy Down Amount.

                    (1) To fund the IUE-CWA buy downs, GM agrees to pay to Delphi an amount equal
to the sum of $105,000 times the number of production employees who do not accept an
attrition option in any amount at any site (excluding Gadsden and temporary
employees) plus $10,000 times the number of skilled trades employees who do not
accept an attrition option in any amount at any site (excluding Gadsden and
temporary employees) as set forth in Section C.3.c. and Attachments A and F of the
IUE-CWA MOU (the “IUE-CWA Buy Down Amount”).

                    (2) No later than thirty (30) days before the Effective Date, Delphi shall
deliver to GM an invoice for the IUE-CWA Buy Down Amount (the “IUE-CWA Buy Down
Amount Invoice”), which shall include the names of the Delphi employees
referenced in section 3.03(a)(iv)(1), and the last plant location, last employment
status, job classification of, and shall contain a representation that such
information is substantially complete and substantially accurate in all respects.

                    (3) GM shall pay the amount in the IUE-CWA Buy Down Amount Invoice on the later
of (i) the Effective Date and (ii) thirty (30) days following the receipt by GM of
the IUE-CWA Buy Down Amount Invoice that contains all information and
representations required by section 3.03(a)(iv)(2).

               (v) IUE-CWA Buy Out Payments. GM agrees to reimburse Delphi using the
procedure set forth in section 3.03(e) herein for one-half of the IUE-CWA Buy Out
Payments actually paid by Delphi pursuant to Section C.3.b of the IUE-CWA MOU and
Attachment C thereto.

GSA-33

 

               (vi) Retirement Incentives. GM agrees to reimburse Delphi using the
procedure set forth in section 3.03(e) herein for the $35,000 IUE-CWA Retirement
Incentives actually paid by Delphi pursuant to Section C.3.a of the IUE-CWA MOU and
Attachment C thereto.

               (b) GM IUE-CWA Payment. GM agrees to pay Delphi a sum total amount of $25 million
(the “GM IUE-CWA Payment”) on the Effective Date to provide for costs and expenses incurred
by Delphi in connection with the execution and performance of the IUE-CWA MOU.

               (c) IUE-CWA Claim. GM agrees to pay an amount equal to $26 million on the Effective
Date as reimbursement to Delphi for a portion of the allowed claim under the IUE-CWA MOU.

               (d) Costs of Pre-Retirement Program. Delphi agrees to continue to provide monthly
wage payments and active employment benefits to PRP participants pursuant to the IUE-CWA MOU.
Commencing October 1, 2007, notwithstanding the requirements of the IUE-CWA MOU, Delphi shall
continue to provide PRP participants with active health care coverage from Delphi in accordance
with the pre-October 1, 2007 hourly health care program option applicable to each of the PRP
participants. This level of coverage shall be higher than called for in the IUE-CWA MOU. GM shall
bear the financial responsibility for any difference in the level of coverage between that which
Delphi is continuing to provide per this section 3.03(d) and that which Delphi otherwise provides
to its active IUE-CWA represented employees as of October 1, 2007. Upon the conclusion of the
GM-IUE-CWA national contract negotiations but in no event later than December 31, 2007, GM and
Delphi shall cooperate to implement an appropriate administrative fix consistent with their
respective contractual obligations regarding the level of health care for PRP participants; it
being understood that Delphi shall bear financial responsibility for the level of PRP active health
care coverage Delphi provides other active IUE-CWA represented employees as of October 1, 2007, and
GM shall bear financial responsibility only to the extent that the GM level of active health care
coverage for active GM IUE-CWA represented employees exceeds the Delphi level.

               (e) Reimbursement Procedure. The reimbursement or payment, as applicable, of the
IUE-CWA Retirement Incentives and the IUE-CWA Buy Out Payments shall be made according to the
following procedures:

               (i) GM shall reimburse Delphi for 100% of the IUE-CWA Retirement Incentives,
50% of the IUE-CWA Buy Out Payments, 100% of the incremental Delphi portion of FICA
taxes paid due to the IUE-CWA Retirement Incentives, and 50% of the incremental
Delphi portion of FICA taxes paid due to the IUE-CWA Buy Out Payments, as applicable
(collectively, the “IUE-CWA-Related Reimbursements”).

               (ii) The IUE-CWA Retirement Incentives, and the IUE-CWA Buy Out Payments shall
be made through Delphi payroll in the month that the employee retirement or buy out
is made, or as soon as possible thereafter.

GSA-34

 

Delphi shall be responsible for all information reporting obligations arising
from the IUE-CWA Retirement Incentives and the IUE-CWA Buy Out Payments, and for
remittance of all associated tax withholding and payroll taxes to the applicable
taxing authorities.

               (iii) The IUE-CWA Retirement Incentives and the IUE-CWA Buy Out Payments shall
be reviewed by Delphi for garnishments, child support, or other payments for which
Delphi is legally required to reduce payments to be made to an employee. GM shall
reimburse Delphi the full amount due hereunder with respect to the IUE-CWA
Retirement Incentives and the IUE-CWA Buy Out Payments without regard to any legally
required reduction of payments to an employee.

               (iv) The amount of the IUE-CWA-Related Reimbursements and the supporting detail
showing the IUE-CWA Retirement Incentives and the IUE-CWA Buy Out Payments made by
Delphi shall be provided in an invoice to GM (the “IUE-CWA Reimbursement
Invoice”). The IUE-CWA Reimbursement Invoice shall be supported by the following
information regarding each Delphi employee receiving such payment: name, social
security number, CISCO code, last plant location, last employment status, date of
retirement (if applicable), retirement type code (if applicable) (e.g. 30 & out, 85
point, 60 & 10, normal), date of separation (if applicable), the nature and amount
of the payment, payment date, roll number, and detail showing the incremental Delphi
portion of FICA tax payments made related to the IUE-CWA-Related Reimbursements.
Such IUE-CWA Reimbursement Invoice shall contain a representation that such
information is substantially complete and substantially accurate in all respects.

               (v) GM shall pay all amounts in each IUE-CWA Reimbursement Invoice that
contains all information and representations required by section 3.03(e)(iv) hereof
within thirty (30) days following the receipt by GM of each respective IUE-CWA
Reimbursement Invoice or as otherwise agreed by GM and Delphi (if the 30th day falls
on a weekend or holiday, GM shall pay Delphi on the next business day).

               (f) Audit Rights. Delphi shall (i) permit GM and/or its agents at GM’s expense to
audit all information used to derive any calculation or payment amount referenced in this section
3.03 and (ii) reasonably cooperate with GM and its agents in any such audit activities in a timely
manner; provided, however, that (x) GM shall provide Delphi with reasonable advance
written notice identifying the records and information that GM intends to audit and (y) GM shall
reasonably cooperate with Delphi and its agents in any such audit activities.

               (g) Notwithstanding anything to the contrary in this Agreement, GM shall make no payments or
reimbursements under this section 3.03 that relate to the Gadsden facility.

GSA-35

 

               (h) Offset. Notwithstanding anything to the contrary in this Agreement or the
Restructuring Agreement, any payment by GM of any invoiced amount pursuant to this section 3.03
shall be subject to GM’s right to offset all or part of such payment as provided in section 7.04
hereof.

          Section 3.04 USW. With respect to the USW-represented employees:

               (a) USW MOUs.

               (i) USW SAP. GM agreed pursuant to the USW MOUs to provide financial
support for the USW SAP as set forth in Section C of the USW MOU-Home Avenue and
Attachment C thereto, which support shall include: (i) assuming OPEB for certain
USW-represented employees and (ii) backstopping active healthcare and life insurance
coverage for certain USW-represented employees.

               (ii) USW Buy Out Payments. GM agrees to reimburse Delphi using the
procedure set forth in section 3.04(d) herein for one-half of the USW Buy Out
Payments actually paid by Delphi pursuant to Section C.2 of the USW MOU – Home
Avenue and Section C.1 of the USW MOU – Vandalia and Attachment C thereto.

               (iii) Retirement Incentives. GM agrees to reimburse Delphi using the
procedure set forth in section 3.04(d) herein for the USW Retirement Incentives
actually paid by Delphi pursuant to Section C of the USW MOU-Home Avenue and
Attachment C thereto.

               (b) USW Claim. In resolution of certain claims asserted by the USW, including in
connection with the modification of retiree benefit programs, and without any acknowledgement by
either GM or Delphi of those claims, GM agreed pursuant to the USW MOU – Home Avenue to pay the
amount of $9 million to the VEBA described in Section F.3 of the USW MOU – Home Avenue.

               (c) Costs of Pre-Retirement Program. Delphi agrees to continue to provide monthly
wage payments and active employment benefits to PRP participants pursuant to the USW MOU – Home
Avenue. Delphi shall provide such PRP participants active health care as described in Section E.12
of the USW MOU – Home Avenue. GM shall have no obligation to reimburse Delphi for providing this
level of active health care to the USW PRP participants.

               (d) Reimbursement Procedure. The reimbursement or payment, as applicable of the USW
Retirement Incentives and the USW Buy Out Payments shall be made according to the following
procedure:

               (i) GM shall reimburse Delphi for 100% of the USW Retirement Incentives and 50%
of the USW Buy Out Payments, as applicable, plus 100% of the incremental Delphi
portion of FICA taxes paid due to the USW

GSA-36

 

Retirement Incentives and 50% of the incremental Delphi portion of FICA taxes
paid due to the USW Buy Out Payments, as applicable (collectively, the
“USW-Related Reimbursements”).

               (ii) The USW Retirement Incentives and the USW Buy Out Payments shall be made
through Delphi payroll in the month that the employee retirement or buy out is made,
or as soon as possible thereafter. Delphi shall be responsible for all information
reporting obligations arising from the USW Retirement Incentives and the USW Buy Out
Payments and for remittance of all associated tax withholding and payroll taxes to
the applicable taxing authorities.

               (iii) The USW Retirement Incentives and the USW Buy Out Payments shall be
reviewed by Delphi for garnishments, child support, or other payments for which
Delphi is legally required to reduce payments to be made to an employee. GM shall
reimburse Delphi the full amount due hereunder without regard to any legally
required reduction of payments to an employee.

               (iv) The amount of the USW-Related Reimbursements and supporting detail showing
the USW Retirement Incentives and the USW Buy Out Payments made by Delphi shall be
provided in an invoice to GM (the “USW Reimbursement Invoice”). The USW
Reimbursement Invoice shall be supported by the following information regarding each
Delphi employee receiving such payment: name, social security number, CISCO code,
last plant location, last employment status, date of retirement (if applicable),
retirement type code (if applicable) (e.g. 30 & out, 85 point, 60 & 10, normal),
date of separation (if applicable), the nature and amount of the payment, payment
date, roll number, and detail showing the incremental Delphi portion of FICA tax
payments made related to the USW-Related Reimbursements. Such USW Reimbursement
Invoice shall contain a representation that such information is substantially
complete and substantially accurate in all respects.

               (v) GM shall pay all amounts in each USW Reimbursement Invoice that contains
all information and representations required by section 3.04(c)(iv) hereof within
thirty (30) days following the receipt by GM of each respective USW Reimbursement
Invoice or as otherwise agreed by GM and Delphi (if the 30th day falls on a weekend
or holiday, GM shall pay Delphi on the next business day).

               (e) Audit Rights. Delphi shall (i) permit GM and/or its agents at GM’s expense to
audit all information used to derive any calculation or payment amount referenced in this section
3.04 and (ii) reasonably cooperate with GM and its agents in any such audit activities in a timely
manner; provided, however, that (x) GM shall provide Delphi with reasonable advance written notice
identifying the records and information that GM intends to audit, and (y) GM shall reasonably
cooperate with Delphi and its agents in any such audit activities.

GSA-37

 

               (f) Offset. Notwithstanding anything to the contrary in this Agreement or the
Restructuring Agreement, any payment by GM of any invoiced amount pursuant to this section 3.04
shall be subject to GM’s right to offset all or part of such payment as provided in section 7.04
hereof.

ARTICLE IV

RELEASES AND CLAIMS TREATMENT

          In partial consideration for the promises and agreements made by the Debtors and GM pursuant
to this Agreement, the Restructuring Agreement, the Plan, the Labor MOUs, the Non-Represented
Employees Term Sheet, the UAW SAP, the IUE-CWA SAP, the IP License and the Warranty Settlement
Agreement, and subject to the provisions of section 4.03 of this Agreement, Delphi and GM agree to
the following terms to resolve claims in existence as of the Effective Date that each of the
Delphi-Related Parties or Delphi Affiliate Parties, on the one hand, and the GM-Related Parties, on
the other hand, have or may have against each other, and that each of the Additional Releasing
Parties, the UAW Releasing Parties, the IUE-CWA Releasing Parties, the USW Releasing Parties, the
IAM Releasing Parties, the IBEW Releasing Parties, the IUOE Releasing Parties, and the
Non-Represented Employees Releasing Parties have or may have against the GM-Related Parties.

          Section 4.01 Release of GM-Related Parties.

               (a) The Debtors agree, and the Plan shall provide, that effective as of the Effective Date,
the GM-Related Parties shall be forever released by the Delphi-Related Parties from any and all
claims, debts, obligations, rights, suits, damages, actions, causes of action, remedies, and
liabilities whatsoever (excepting only the Delphi Surviving Claims), which the Delphi-Related
Parties ever had, now have, or hereafter may have, whether known or unknown, liquidated or
unliquidated, contingent or noncontingent, asserted or unasserted, foreseen or unforeseen, existing
as of the Effective Date, in law, at equity, or otherwise, that are directly or indirectly related
to any of the Delphi-Related Parties, including without limitation claims based in whole or in part
upon any act or omission, transaction, agreement, event, action, or other occurrence taking place
or failing to take place on or before the Effective Date related to (i) the Separation, (ii) any
collective bargaining agreements to which any Delphi-Related Party is now or has been a party,
(iii) any agreement or obligation related to any employees or former employees of the
Delphi-Related Parties, (iv) the Chapter 11 Cases, or (v) the formulation, preparation,
negotiation, dissemination, confirmation, or consummation (but not performance) of the Plan, the
Disclosure Statement, this Agreement, the Restructuring Agreement, the Labor MOUs, the
Non-Represented Employees Term Sheet, the UAW SAP, the IUE-CWA SAP, the IP License, the Warranty
Settlement Agreement, or any contract, instrument, or other agreement or document created,
modified, amended, or entered into in connection with any of the foregoing. The releases provided
for in this section 4.01(a) include any and all claims that any of the Delphi-Related Parties has
or would have been legally entitled to assert in its own right (whether individually or
collectively) and shall be effective against any person or entity (including, without limitation,
any holder of a claim against or equity interest in

GSA-38

 

any of the Delphi-Related Parties) that would have been legally entitled to assert such claim
derivatively or otherwise on behalf of any of the Delphi-Related Parties.

               (b) The Debtors agree, and the Plan shall provide, that effective as of the Effective Date,
the GM-Related Parties shall be forever released by the Delphi Affiliate Parties from any and all
claims, debts, obligations, rights, suits, damages, actions, causes of action, remedies, and
liabilities whatsoever (excepting only the Delphi Surviving Claims), which the Delphi Affiliate
Parties ever had, now have, or hereafter may have, whether known or unknown, liquidated or
unliquidated, contingent or noncontingent, asserted or unasserted, foreseen or unforeseen (whether
based in whole or in part upon any act or omission, transaction, agreement, event, action, or other
occurrence taking place or failing to take place on or before the Effective Date) existing as of
the Effective Date, in law, at equity, or otherwise, that are related to (i) the Separation, (ii)
any collective bargaining agreements to which any Delphi-Related Party is now or has been a party,
(iii) any agreement or obligation related to any employees or former employees of the
Delphi-Related Parties, (iv) the Chapter 11 Cases, (v) the formulation, preparation, negotiation,
dissemination, confirmation, or consummation (but not performance) of the Plan, the Disclosure
Statement, this Agreement, the Restructuring Agreement, the Labor MOUs, the Non-Represented
Employees Term Sheet, the UAW SAP, the IUE-CWA SAP, the IP License, the Warranty Settlement
Agreement, or any contract, instrument, or other agreement or document created, modified, amended,
or entered into in connection with any of the foregoing or (vi) any obligation of the GM Related
Parties which is directly related to any obligation which is being released by the Delphi-Related
Parties pursuant to section 4.01(a) of this Agreement. The releases provided for in this section
4.01(b) include any and all claims that any of the Delphi Affiliate Parties have or would have been
legally entitled to assert in its own right (whether individually or collectively) and shall be
effective against any person or entity (including without limitation, any holder of a claim against
or equity interest in any of the Delphi Affiliate Parties) that would have been legally entitled to
assert such claim derivatively or otherwise on behalf of any of the Delphi Affiliate Parties.

               (c) The Plan shall provide that effective as of the Effective Date, the GM-Related Parties
shall be forever released by the Additional Releasing Parties from any and all claims, debts,
obligations, rights, suits, damages, actions, causes of action, remedies, and liabilities
whatsoever, which the Additional Releasing Parties ever had, now have, or hereafter may have,
whether known or unknown, liquidated or unliquidated, contingent or noncontingent, asserted or
unasserted, foreseen or unforeseen, existing as of the Effective Date, in law, at equity, or
otherwise, that are directly or indirectly related to any of the Delphi-Related Parties, including
without limitation claims based in whole or in part upon any act or omission, transaction,
agreement, event, action, or other occurrence taking place or failing to take place on or before
the Effective Date related to (i) the Separation, (ii) any collective bargaining agreements to
which any Delphi-Related Party is now or has been a party, (iii) any agreement or obligation
related to any employees or former employees of the Delphi-Related Parties, (iv) the Chapter 11
Cases, or (v) the formulation, preparation, negotiation, dissemination, confirmation, or
consummation (but not performance) of the Plan, the Disclosure Statement, this Agreement, the
Restructuring Agreement, the Labor

GSA-39

 

MOUs, the Non-Represented Employees Term Sheet, the UAW SAP, the IUE-CWA SAP, the IP License,
the Warranty Settlement Agreement, or any contract, instrument, or other agreement or document
created, modified, amended, or entered into in connection with any of the foregoing. The releases
provided for in this section 4.01(c) shall include any and all claims that any of the Additional
Releasing Parties have or would have been legally entitled to assert in its own right (whether
individually or collectively) and shall be effective against any person or entity that would have
been legally entitled to assert such claim derivatively or otherwise on behalf of any of the
Additional Releasing Parties.

               (d) The Plan shall provide that effective as of the Effective Date, the GM-Related Parties
shall be released by the UAW Releasing Parties as set forth in the UAW MOU.

               (e) The Plan shall provide that effective as of the Effective Date, the GM-Related Parties
shall be released by the IUE-CWA Releasing Parties as set forth in the IUE-CWA MOU.

               (f) The Plan shall provide that effective as of the Effective Date, the GM-Related Parties
shall be released by the USW Releasing Parties as set forth in the USW MOUs.

               (g) The Plan shall provide that effective as of the Effective Date, the GM-Related Parties
shall be released by the IAM Releasing Parties as set forth in the IAM MOU.

               (h) The Plan shall provide that effective as of the Effective Date, the GM-Related Parties
shall be released by the IBEW Releasing Parties as set forth in the IBEW MOUs.

               (i) The Plan shall provide that effective as of the Effective Date, the GM-Related Parties
shall be released by the IUOE Releasing Parties as set forth in the IUOE MOUs.

               (j) The Plan shall provide that effective as of the Effective Date, the GM-Related Parties
shall be released by the Non-Represented Employees Releasing Parties as set forth in the
Non-Represented Employees Term Sheet.

               (k) The Parties acknowledge that (x) the consideration provided by GM pursuant to this
Agreement, the Restructuring Agreement, the Labor MOUs, the Non-Represented Employees Term Sheet,
the UAW SAP, the IUE-CWA SAP, the IP License, and the Warranty Settlement Agreement constitutes a
substantial contribution to the Plan that is necessary to the success of the Plan, and (y) GM would
not have made this contribution without the releases provided for in this Agreement and in the
Plan. The Parties further acknowledge that nothing in the preceding sentence shall give rise to,
or entitle GM to seek or be allowed, any claim against, or consideration from, any entity,
including Delphi, other than as specifically approved by the Bankruptcy Court in the

GSA-40

 

Confirmation Order and as agreed to by Delphi and GM in this Agreement or the Restructuring
Agreement.

          Section 4.02 Release of Delphi-Related Parties and the Delphi Affiliate Parties.

               (a) GM agrees, and the Plan shall provide, that effective as of the Effective Date, the
Delphi-Related Parties shall be forever released by the GM-Related Parties from any and all claims,
debts, obligations, rights, suits, damages, actions, causes of action, remedies, and liabilities
whatsoever (excepting only the GM Surviving Claims), which the GM-Related Parties ever had, now
have, or hereafter may have, whether known or unknown, liquidated or unliquidated, contingent or
noncontingent, asserted or unasserted, foreseen or unforeseen, existing as of the Effective Date,
in law, at equity, or otherwise, that are directly or indirectly related to any of the
Delphi-Related Parties, including without limitation claims based in whole or in part upon any act
or omission, transaction, agreement, event, action, or other occurrence taking place or failing to
take place on or before the Effective Date related to (i) Separation, (ii) any collective
bargaining agreements to which any Delphi-Related Party is now or has been a party, (iii) any
agreement or obligation related to any employees or former employees of the Delphi-Related Parties,
(iv) the Chapter 11 Cases, or (v) the formulation, preparation, negotiation, dissemination,
confirmation, or consummation (but not performance) of the Plan, the Disclosure Statement, this
Agreement, the Restructuring Agreement, the Labor MOUs, the Non-Represented Employees Term Sheet,
the UAW SAP, the IUE-CWA SAP, the IP License, the Warranty Settlement Agreement, or any contract,
instrument, or other agreement or document created, modified, amended, or entered into in
connection with any of the foregoing. The releases provided for in this section 4.02(a) shall
include any and all claims that any of the GM-Related Parties have or would have been legally
entitled to assert in its own right (whether individually or collectively) and shall be effective
against any person or entity that would have been legally entitled to assert such claim
derivatively or otherwise on behalf of any of the GM-Related Parties.

               (b) GM agrees, and the Plan shall provide, that effective as of the Effective Date, the Delphi
Affiliate Parties shall be forever released by the GM-Related Parties from any and all claims,
debts, obligations, rights, suits, damages, actions, causes of action, remedies, and liabilities
whatsoever (excepting only the GM Surviving Claims), which the GM-Related Parties ever had, now
have, or hereafter may have, whether known or unknown, liquidated or unliquidated, contingent or
noncontingent, asserted or unasserted, foreseen or unforeseen, (whether based in whole or in part
upon any act or omission, transaction, agreement, event, action, or other occurrence taking place
or failing to take place on or before the Effective Date, existing as of the Effective Date,) in
law, at equity, or otherwise, that are related to (i) the Separation, (ii) any collective
bargaining agreements to which any Delphi-Related Party is now or has been a party, (iii) any
agreement or obligation related to any employees or former employees of the Delphi-Related Parties,
(iv) the Chapter 11 Cases, (v) the formulation, preparation, negotiation, dissemination,
confirmation, or consummation (but not performance) of the Plan, the

GSA-41

 

Disclosure Statement, this Agreement, the Restructuring Agreement, the Labor MOUs, the
Non-Represented Employees Term Sheet, the UAW SAP, the IUE-CWA SAP, the IP License, the Warranty
Settlement Agreement, or any contract, instrument, or other agreement or document created,
modified, amended, or entered into in connection with any of the foregoing, or (vi) any obligation
of the Delphi Affiliate Parties which is directly related to any obligation which is being released
by GM pursuant to section 4.02(a) of this Agreement. The releases provided for in this section
4.02(b) include any and all claims that any of the GM-Related Parties have or would have been
legally entitled to assert in its own right (whether individually or collectively) and shall be
effective against any person or entity (including without limitation, any holder of a claim against
or equity interest in any of the GM-Related Parties) that would have been legally entitled to
assert such claim derivatively or otherwise on behalf of any of the GM-Related Parties.

               (c) Without limiting any of the foregoing releases contained in Article IV, GM agrees, and the
Plan shall provide, that effective as of the Effective Date, Delphi and Delphi Canada Inc. shall be
released by GM and General Motors of Canada Limited from any and all claims, debts, obligations,
rights, suits, damages, actions, causes of action, remedies, and liabilities which GM and General
Motors of Canada Limited may have arising out of or related to the separation of leased employees
from the Oshawa facility as contemplated in the Oshawa Labour and Management Services Agreement
entered into as of May 1, 2000, by and among Delphi Canada Inc. and General Motors of Canada
Limited.

          Section 4.03 Surviving Claims.

               (a) Each release by a Delphi-Related Party or Delphi Affiliate Party of the GM-Related Parties
pursuant to section 4.01 of this Agreement and the Plan shall not release the GM-Related Parties
from any claims arising in connection with the Ordinary Course Relationship, the Continuing
Agreements, and rights, remedies, claims, or interests that such Delphi-Related Party or Delphi
Affiliate Party may be expressly receiving or expressly retaining pursuant to this Agreement, the
Restructuring Agreement, the Labor MOUs, the Non-Represented Employees Term Sheet, the UAW SAP, the
IUE-CWA SAP, the IP License, or the Warranty Settlement Agreement on or after the Effective Date
(collectively, the “Delphi Surviving Claims”).

               (b) (i) Each GM-Related Party’s release of the Delphi-Related Parties or Delphi Affiliate
Parties pursuant to section 4.02 of this Agreement and the Plan shall not release (A) the
Delphi-Related Parties from: (1) claims that arose in connection with the Ordinary Course
Relationship; provided, however, that asserted claims arising from an Ordinary
Course Relationship that are specifically identified in Section II of the GM Proof of Claim shall
not survive except those in an amount that shall not exceed $8,000,869.04 in the aggregate for all
such claims; provided further, however, that any payments by Delphi to GM
with respect to any such claims shall be subject to either the Parties reaching agreement with
respect to the issues related thereto or a judicial determination requiring Delphi to make such
payments; (2) claims arising in connection with the Financial Services Supply Agreement and the
Energy Services Agreement that are

GSA-42

 

specifically identified in Sections III (b) and (c) of the GM Proof of Claim, which shall be
deemed an allowed claim in the amount of $448,245.28 for all such claims and shall be paid in full
in cash on the Effective Date; (3) claims that arose in connection with the Assignment and
Assumption Agreement – Industrial Revenue Bonds (as defined in the Restructuring Agreement) that
are specifically identified in Section XII(b) of the GM Proof of Claim; provided,
however, that any payments by Delphi to GM with respect to any such claims shall be subject
to either the Parties reaching agreement with respect to the issues related thereto or a judicial
determination requiring Delphi to make such payments; (4) claims asserted in Section XI of the GM
Proof of Claim with respect to tax matters; provided further, however, that
any payments by Delphi to GM with respect to any such claims shall be subject to either the Parties
reaching agreement with respect to the issues related thereto or a judicial determination requiring
Delphi to make such payments; and (5) any postpetition claims arising under Continuing Agreements
or pursuant to the Ordinary Course Relationship, (B) the Delphi Affiliate Parties from any claims
arising in connection with the Continuing Agreements or the Ordinary Course Relationship, provided
that such claims as are identified in the GM Proof of Claim shall also be released with respect to
the Delphi Affiliate Parties except to the extent that such parties are also liable for claims in
the GM Proof of Claim described in subsections (A)(1), (3), (4) and (5) above but such liability
shall not increase the aggregate claims cap established in (A)(1) above, or (C) any rights,
remedies, claims, or interests that such GM-Related Party may be expressly receiving or expressly
retaining pursuant to the Plan, this Agreement, the Restructuring Agreement, the Labor MOUs, the
Non-Represented Employees Term Sheet, the IP License, or the Warranty Settlement Agreement
(collectively, the “GM Surviving Claims”) and (ii) the Plan and Confirmation Order shall expressly
provide that the GM Surviving Claims are reinstated pursuant to Bankruptcy Code section 1124 and
are not discharged pursuant to the Plan or the Confirmation Order subject to the subsequent
allowance of the surviving portion of the GM Proof of Claim as to which the rights of the
Delphi-Related Parties and Delphi Affiliate Parties are reserved.

          Section 4.04 Cash to Be Paid to GM.

               (a) On the Effective Date, and pursuant to the Plan, Delphi shall pay in cash to GM the sum of
$2,700,000,000 (two billion seven hundred million dollars).

               (b) The payments made to GM pursuant to this section 4.04 and the survival of the GM Surviving
Claims shall be in (i) satisfaction of all claims asserted or assertable under sections 501, 502,
503, 506, and 507 of the Bankruptcy Code or otherwise by the GM-Related Parties against the Debtors
in the Chapter 11 Cases, including those asserted in the GM Proof of Claim, and (ii) settlement of
the GM Proof of Claim.

GSA-43

 

ARTICLE V

IMPLEMENTATION

          Section 5.01 Bankruptcy Court Filing. Simultaneously with the filing of the Plan with the
Bankruptcy Court, the Debtors shall file this Agreement with the Bankruptcy Court as an exhibit to
the Plan.

          Section 5.02 Actions Concerning Debtors’ Section 365 Motion. Within ten (10) days
following the Disclosure Statement Approval Date, the Debtors shall withdraw the Section 365 Motion
without prejudice.

          Section 5.03 Actions Concerning Debtors’ 1113/1114 Motions. Upon approval by the
Bankruptcy Court of a Labor MOU with respect to a particular Union, the Debtors shall withdraw,
without prejudice, the 1113/1114 Motion solely with respect to such Union.

ARTICLE VI

CONDITIONS TO EFFECTIVENESS

          Section 6.01 The provisions of this Agreement, except for the provisions in Article V hereof
(which shall become effective upon execution of this Agreement), shall become effective upon the
occurrence of all of the following events unless waived by consent of the Parties:

               (a) All Unions shall have ratified their respective Labor MOUs, and the Bankruptcy Court shall
have entered orders in form and substance satisfactory to Delphi, GM, and the applicable Union
approving such MOUs, which orders shall have become Final Orders;

               (b) (i) The Bankruptcy Court shall have approved this Agreement in the Confirmation Order in
connection with confirmation of the Plan, and such order shall have become a Final Order;

               (ii) The approval of this Agreement by the Bankruptcy Court as set forth in the
Confirmation Order shall be in form and substance satisfactory to the Parties; and

               (iii) GM shall have consented to all other provisions of the Confirmation Order;
provided, however, that GM’s consent shall be required only to the
extent that such provisions would have a material impact on GM, on the benefits GM
reasonably is expected to receive under the Plan (including, without limitation,
GM’s distributions thereunder), the Restructuring Agreement, or this Agreement, or
on the ability of the Debtors to fulfill any obligations to any GM-Related Parties
under the Plan, the Restructuring Agreement, this Agreement, or

GSA-44

 

any agreements assumed, reinstated, or ratified under the Restructuring
Agreement.

               (c) To the extent that the terms of any of the following would have a material impact on GM,
on the benefits GM reasonably is expected to receive under the Plan (including, without limitation,
GM’s distributions thereunder), the Restructuring Agreement, or this Agreement, or on the ability
of any Debtors to fulfill any obligations to any GM-Related Parties under the Plan, the
Restructuring Agreement, this Agreement, or any agreements assumed, reinstated, or ratified under
the Restructuring Agreement, GM shall have consented in writing to any and all of the following:
(1) amendments, supplements, or other modifications to the Plan; (2) (i) any exhibits or other
attachments to the Plan, (ii) any documents or instruments incorporated by reference or otherwise
into the Plan or into any exhibits or other attachments thereto, and (iii) any and all amendments,
supplements, or other modifications to any of the exhibits, attachments, documents, or instruments
described in clauses (i) or (ii) of this sentence; and (3) the proposed Confirmation Order and any
and all amendments, supplements, or other modifications thereto; provided, however,
that GM shall provide written notice to Delphi of which item described in clauses (1) through (3)
of this sentence required GM’s consent pursuant to this sentence but was withheld, and Delphi may
seek resolution by the Bankruptcy Court of whether GM’s consent was so required; provided
further, however, that the Parties agree that, among other things, any increase in the
amount of distributions (or change in the form of distributions) to holders of claims or equity
interests under the Plan, any change in any of the provisions of section 4.01, 4.02, or 4.03
hereof, or any change in the identity of the Plan Investors other than as permitted by the EPCA
shall be deemed for purposes of Articles VI and VII of this Agreement to have a material impact on
GM, on the benefits that GM is expected to receive under the Plan, the Restructuring Agreement, and
this Agreement, and on the ability of the Debtors to fulfill obligations to GM-Related Parties
under the Plan, the Restructuring Agreement, this Agreement, and agreements assumed, reinstated, or
ratified under the Restructuring Agreement; and

               (d) The Effective Date shall have occurred and GM shall have received a cash payment in the
amount of $2,700,000,000 (two billion seven hundred million dollars) under the Plan;

provided, however, that no statute, rule or regulation or order, judgment or decree
of any court or administrative agency or other governmental entity shall be in effect which
prohibits the consummation of one or more of the transactions to be consummated under this
Agreement, unless such transaction is severed pursuant to section 7.21 hereof; provided
further, however, that the substantial majority of all assets, whether real or
personal, used to produce any products pursuant to GM Purchase Orders shall be owned or leased by
DAS (other than tooling owned by GM) and all obligations pursuant to the GM Purchase Orders shall
be the responsibility of DAS. GM irrevocably consents to the performance of the GM Purchase Orders
by DAS and any Delphi-Related Party that is directly or indirectly wholly-owned by Delphi, as
directed by DAS; provided, however, that any change of the location of production
shall require GM’s prior written consent. Regardless of whether the transaction is severed, each
of the Parties shall use

GSA-45

 

reasonable efforts to prevent the entry of, and to appeal promptly, any injunction or other order
prohibiting one or more of the transactions to be consummated under this Agreement.

ARTICLE VII

MISCELLANEOUS

          Section 7.01 Resolution of Pending Setoff Issues(a). On the MNS-2 payment date
immediately following the Effective Date, GM shall pay to Delphi the aggregate amount of all
outstanding Delphi invoices related to tooling procured by Delphi in accordance with GM Purchase
Orders, for which GM has withheld payment due to outstanding prepetition amounts due to Delphi’s
sub-suppliers, including the invoices set forth on Exhibit E to this Agreement, provided
that Delphi (i) confirms, in writing, GM’s ownership of the applicable tooling free and clear of
liens, claims and encumbrances, and (ii) agrees to indemnify and hold GM harmless from and against
any liens, claims and encumbrances with respect to the applicable tooling.

          Section 7.02 No Undisclosed Agreements or Commitments. There are no undisclosed agreements
or commitments between or among the Parties regarding matters subject to the terms of this
Agreement.

          Section 7.03 Termination. This Agreement may be terminated and the transactions
contemplated hereby may be abandoned as follows:

               (a) by mutual written consent of both Delphi and GM;

               (b) by GM if Delphi files with, or presents to, the Bankruptcy Court without GM’s prior
written consent any of the following, but only to the extent that any of the following would have a
material impact on GM, on the benefits GM reasonably is expected to receive under the Plan
(including, without limitation, GM’s distributions thereunder), the Restructuring Agreement, or
this Agreement, or on the ability of any Debtors to fulfill any obligations to any GM-Related
Parties under the Plan, the Restructuring Agreement, this Agreement, or any agreements assumed,
reinstated, or ratified under the Restructuring Agreement: (i) amendments, supplements, or other
modifications to the Plan; (ii) exhibits or other attachments to the Plan, or any amendments,
supplements, or other modifications thereto; or (iii) the proposed Confirmation Order or any
amendments, supplements, or other modifications thereto; provided, however, that GM
shall provide Delphi with written notice of its intent to terminate this Agreement pursuant to this
section 7.03(b), which notice shall indicate which item described in clauses (i) through (iii) of
this sentence is the basis for GM’s intent to terminate this Agreement pursuant to this section
7.03(b); provided further, however, that Delphi shall have thirty (30) days from the provision of
such notice to (x) withdraw or amend such item in a manner that no longer gives rise to GM’s
termination right in respect of such item before GM may actually terminate this Agreement, and/or
(y) obtain a determination by the Bankruptcy Court that GM does not have a right to terminate this
Agreement pursuant to this section 7.03(b);

GSA-46

 

               (c) by GM if (i) any of the Chapter 11 Cases is converted into a case under chapter 7 of the
Bankruptcy Code, or (ii) a trustee is appointed pursuant to section 1104 of the Bankruptcy Code in
any of the Chapter 11 Cases;

               (d) by either Delphi or GM if the Effective Date has not occurred by March 31, 2008 or, if the
EPCA has not been terminated by such date, the first to occur of the termination of the EPCA or
April 30, 2008; or

               (e) by GM if it shall not have received a cash payment in the amount of $2,700,000,000 (two
billion seven hundred million dollars) under the Plan by March 31, 2008 or, if the EPCA has not
been terminated by such date, the first to occur of the termination of the EPCA or April 30, 2008.

          Section 7.04 No Offset. Notwithstanding anything to the contrary contained in this
Agreement or the Restructuring Agreement, the Parties’ payment obligations under this Agreement and
the Restructuring Agreement are absolute and unconditional and will not be subject to any offset
(except as expressly set forth in the proviso below) or defense of any nature whatsoever including
upon a breach by Delphi or any of its Affiliates or GM or any of its Affiliates, as applicable, of
any of their obligations under this Agreement, the Restructuring Agreement, or any other agreement;
provided, however, that any payments by GM pursuant to this Agreement or the Restructuring
Agreement shall be subject to GM’s right to offset all or part of such payment from any future
amounts GM owes Delphi under this Agreement or the Restructuring Agreement only if (i) agreed upon
by GM and Delphi or (ii) GM determines that it made an overpayment of any amount paid pursuant to
this Agreement or the Restructuring Agreement and GM and Delphi are unable to resolve GM’s claim
for such amounts pursuant to the applicable dispute resolution provisions of this Agreement or the
Restructuring Agreement and GM provides Delphi with five (5) days’ written notice before
implementing such offset; provided further, however, that if it is judicially determined that GM
did not have the right to offset such amount, GM shall pay Delphi such amount plus interest
accruing on such amount from the date of setoff through the repayment date at the rate of 7.5% per
annum. Neither this section 7.04 nor any other provision of this Agreement or the Restructuring
Agreement shall prohibit, restrict, or limit in any way the application of GM’s contractual rights
of setoff arising under any GM Purchase Order pursuant to GM’s standard purchase order terms and
conditions against other obligations arising under any GM Purchase Orders or agreements other than
this Agreement and the Restructuring Agreement.

GSA-47

 

          Section 7.05 Governing Law; Jurisdiction; Venue. This Agreement shall be governed and
construed in accordance with the internal laws of the State of New York, the forum state in which
the Bankruptcy Court sits, without regard to any conflict of law provision that could require the
application of the law of any other jurisdiction. Pursuant to the Plan and the Confirmation Order,
this Agreement is incorporated by reference in its entirety into the Plan and forms an integral
part thereof. Accordingly, by its execution and delivery of this Agreement, each Party hereby
irrevocably and unconditionally agrees that the Bankruptcy Court shall retain exclusive
jurisdiction over all matters related to the construction, interpretation or enforcement of this
Agreement and the Restructuring Agreement; provided, however, that the Bankruptcy Court shall not
have jurisdiction over (i) disputes arising out of the provisions set forth in Article III of the
Restructuring Agreement or the agreements referenced in sections 5.01(c) and (d) of the
Restructuring Agreement, or (ii) disputes arising out of agreements between any Delphi-Affiliate
Party on the one hand and GM or any of its Affiliates on the other in which disputes no
Delphi-Related Party has an interest; and provided further that after the second anniversary of the
Effective Date, the Bankruptcy Court shall retain non-exclusive jurisdiction over all matters
related to the construction, interpretation or enforcement of this Agreement and the Restructuring
Agreement; and provided further that the jurisdiction of the Bankruptcy Court over all matters
related to this Agreement and the Restructuring Agreement shall terminate upon the fourth
anniversary of the Effective Date. Each Party further agrees to waive any objection based on forum
non conveniens.

          Section 7.06 Dispute Resolution. In the event a Settlement Dispute arises among the
Parties, upon the written request of either Party, such Settlement Dispute shall be referred to the
Director of Business Development at GM and the Finance Director of Automotive Holdings Group or the
Director, Strategic Planning at Delphi (at Delphi’s discretion) for resolution in good faith. In
the event that GM’s Director of Business Development and Delphi’s Finance Director of Automotive
Holdings Group or the Director, Strategic Planning are unable to resolve such dispute, such
Settlement Dispute shall be referred, at either Party’s written request, to the Assistant Treasurer
of GM and the Assistant Treasurer or Treasurer of Delphi (at Delphi’s discretion). If within ten
(10) days after such referral, GM’s Assistant Treasurer and Delphi’s Assistant Treasurer or
Treasurer are unable to resolve the Settlement Dispute, the Settlement Dispute may be elevated by
either Party to GM’s Treasurer or Chief Financial Officer (at GM’s discretion) and Delphi’s Chief
Executive Officer or Chief Financial Officer (at Delphi’s discretion) for resolution. To the
extent that the job title of any of the foregoing positions is changed, this section 7.06 shall be
deemed to apply to such successor title or, if the position is eliminated or vacated, to the job
title of the party taking over the responsibility of the eliminated or vacated position.

          Section 7.07 Joint Communication Program. Delphi and GM shall work together to develop and
implement a joint communication plan with respect to the subject matter of this Agreement.

          Section 7.08 No Solicitation. Each Party acknowledges that this Agreement is not and shall
not be deemed to be a solicitation to accept or reject a plan in contravention of

GSA-48

 

Bankruptcy Code section 1125(b). Each Party further acknowledges that no securities of any Debtor
are being offered or sold pursuant to this Agreement and that this Agreement does not constitute an
offer to sell or a solicitation of an offer to buy any securities of any Debtor.

          Section 7.09 Negotiations Not Admissible. Pursuant to Federal Rule of Evidence 408 and any
applicable state rules of evidence, this Agreement and all negotiations relating thereto are not
admissible into evidence in any proceeding; provided, however, that this Agreement may be
admissible in a proceeding to enforce the terms of this Agreement.

          Section 7.10 Specific Performance. Each Party acknowledges that the other Party would be
irreparably damaged if this Agreement were not performed in accordance with its specific terms or
were otherwise breached. Accordingly, each Party shall be entitled to seek an injunction or
injunctions to prevent breaches of the provisions of this Agreement and to enforce specifically the
terms of this Agreement in addition to any other remedy to which the Parties may be entitled, at
law, in equity or under this Agreement.

          Section 7.11 Representations and Warranties of the Debtors and GM. Each Party represents
and warrants, as to itself only (other than Delphi which represents and warrants on behalf of
itself and the other Debtors), to the other Parties, that the following statements, as applicable
to it, are true, correct, and complete as of the date of this Agreement:

               (a) It is duly organized, validly existing, and in good standing under the laws of its state
of organization and has all requisite corporate power and authority to enter into this Agreement
and to perform its obligations hereunder;

               (b) The execution and delivery of this Agreement and the performance of its obligations
hereunder have been duly authorized by all necessary corporate action on its part;
provided, however, that the Debtors’ authority to enter into this Agreement is
subject to Bankruptcy Court approval;

               (c) This Agreement has been duly executed and delivered by it and constitutes its legal,
valid, and binding obligation, enforceable against it and all of the parties for whom it signed
this Agreement in accordance with the terms hereof, subject to satisfaction of all conditions set
forth in Article VI of this Agreement; and

               (d) The execution, delivery, and performance by it (when such performance is due) of this
Agreement do not and shall not (i) violate any current provision of law, rule, or regulation
applicable to it or any of its subsidiaries or its certificate of incorporation or bylaws or other
organizational documents or those of any of its subsidiaries or (ii) conflict with, result in a
breach of, or constitute (with due notice or lapse of time or both) a default under any material
contractual obligation to which it or any of its subsidiaries is a party.

          Section 7.12 Waiver; Modification; Amendment. Except as otherwise specifically provided
herein, this Agreement may not be modified, waived, amended or supplemented unless such
modification, waiver, amendment or supplement is in writing and has been signed by each Party. No
waiver of any of the provisions of this Agreement shall be

GSA-49

 

deemed or constitute a waiver of any other provision of this Agreement, whether or not similar, nor
shall any waiver be deemed a continuing waiver.

          Section 7.13 Binding Effect; Assignments. This Agreement is intended to bind and inure to
the benefit of the Parties and their respective successors, assigns, administrators, and
representatives. Neither this Agreement nor any of the rights, interests, or obligations under this
Agreement shall be sold, assigned, or otherwise transferred by any Party without the prior written
consent of the other Parties; provided, however, that neither the foregoing nor any other provision
of this Agreement shall limit (i) any assignment in connection with the transfer of all or
substantially all of the assets of Delphi and its Affiliates or (ii) any assignment not reasonably
expected to have a material impact on GM, on the benefits GM reasonably is expected to receive
under the Plan (including, without limitation, GM’s distributions thereunder), the Restructuring
Agreement, or this Agreement, or on the ability of the Debtors to fulfill any obligations to any
GM-Related Parties under the Plan, the Restructuring Agreement, this Agreement, or any agreements
assumed, reinstated, or ratified under the Restructuring Agreement.

          Section 7.14 Third Party Beneficiaries. Except as otherwise provided in Article IV hereof
with respect to releases of GM-Related Parties, Delphi-Related Parties and Delphi Canada Inc.,
nothing contained in this Agreement is intended to confer any rights or remedies under or by reason
of this Agreement on any person or entity other than the Parties hereto, nor is anything in this
Agreement intended to relieve or discharge the obligation or liability of any third party to any
Party to this Agreement, nor shall any provision give any third party any right of subrogation or
action over or against any Party to this Agreement.

          Section 7.15 Notices. All notices and other communications in connection with this
Agreement shall be in writing and shall be deemed given (and shall be deemed to have been duly
given upon receipt) if delivered personally, mailed by registered or certified mail (return receipt
requested) or delivered by an express courier (with confirmation) to the Parties at the following
addresses (or at such other address for a Party as shall be specified by like notice):

          If to Debtors:

Delphi Corporation

5725 Delphi Drive

Troy, Michigan 48098

Attn: John D. Sheehan

           David M. Sherbin, Esq.

           Sean P. Corcoran, Esq.

GSA-50

 

          With a copy to:

Skadden, Arps, Slate, Meagher & Flom LLP

333 West Wacker Drive

Chicago, Illinois 60606-1285

Attn: John Wm. Butler, Jr., Esq.

           Ron E. Meisler, Esq.

and

Skadden, Arps, Slate, Meagher & Flom LLP

Four Times Square

New York, New York 10036

Attn: Eric L. Cochran, Esq.

           Kayalyn A. Marafioti, Esq.

          If to GM:

General Motors Corporation

767 Fifth Avenue

14th Floor

New York, New York 10153

Attn: Director of Business Development

          and

General Motors Corporation

300 GM Renaissance Center

Detroit, Michigan 48265

Attn: General Counsel

          With a copy to:

Weil, Gotshal & Manges LLP

767 Fifth Avenue

New York, New York 10153

Attn: Harvey R. Miller, Esq.

           Jeffrey L. Tanenbaum, Esq.

           Michael P. Kessler, Esq.

or to such other place and with such other copies as either party may designate as to itself by
written notice to the other party. Rejection, any refusal to accept or the inability to deliver
because of changed address of which no notice was given shall be deemed to be receipt of the notice
as of the date of such rejection, refusal or inability to deliver.

GSA-51

 

          Section 7.16 Waiver of Right to Trial by Jury. Each Party waives any right to trial by
jury in any proceeding arising under or related to this Agreement.

          Section 7.17 Service of Process. Each Party irrevocably consents to the service of process
in any legal proceeding arising out of this Agreement by receipt of mailed copies thereof by
national courier service or certified United States mail, postage prepaid, return receipt
requested, to its applicable registered agent. The foregoing, however, shall not limit the right
of a Party to effect service of process on the other Party by any other legally available method.

          Section 7.18 Interpretation.

               (a) In the event of any conflict between this Agreement and any of the Labor MOUs, the
Non-Represented Employees Term Sheet, the UAW SAP, the IUE-CWA SAP, the Warranty Settlement
Agreement, and the IP License, the provisions of such documents other than this Agreement shall
govern.

               (b) Notwithstanding anything to the contrary in the Plan (including any amendments,
supplements or modifications thereto) or the Confirmation Order (and any amendments, supplements or
modifications thereto), in the event that any of the terms of the Plan (including any amendments,
supplements or modifications thereto) or Confirmation Order (including any amendments, supplements
or modifications thereto) conflict with any of the terms of this Agreement, the terms of this
Agreement shall govern.

               (c) Any reference herein to any section of this Agreement shall be deemed to include a
reference to any exhibit, attachment or schedule referred to within such section.

               (d) All references to “$” and dollars shall refer to United States currency.

               (e) Consistent with Bankruptcy Rule 9006(a), if the due date for any action to be taken under
this Agreement (including the delivery of notices) is not a business day, then such action shall be
considered timely taken if performed on or prior to the next business day following such due date.
Any reference to “days” in this Agreement shall mean calendar days unless otherwise specified.

GSA-52

 

          Section 7.19 Expenses. Notwithstanding anything else contained in this Agreement or the
Restructuring Agreement, each Party shall bear all costs and expenses incurred or to be incurred on
or after the Effective Date by such Party in connection with this Agreement and the consummation
and performance of the transactions contemplated hereby.

          Section 7.20 Entire Agreement; Parties’ Intentions; Construction. This Agreement,
including all exhibits and attachments hereto and to the Plan (e.g., the Restructuring Agreement,
the Labor MOUs, and the Non-Represented Employees Term Sheet) and the Confidentiality and
Non-Disclosure Agreement between GM and Delphi dated September 12, 2005, as amended, constitute the
entire agreement of the Parties with respect to the subject matter hereof and supersedes all prior
agreements, whether oral or written, with respect to such subject matter other than with respect to
the agreements expressly assumed, ratified or reinstated in Article V of the Restructuring
Agreement. The attachments and exhibits attached hereto are an integral part of this Agreement and
are hereby incorporated into this Agreement and made a part hereof as if set forth in full herein.
This Agreement is the product of negotiations between the Parties and represents the Parties’
intentions. In any action to enforce or interpret this Agreement, this Agreement shall be
construed in a neutral manner, and no term or provision of this Agreement, or this Agreement as a
whole, shall be construed more or less favorably to any Party.

          Section 7.21 Severability. If any term or other provision of this Agreement is invalid,
illegal, or incapable of being enforced by any rule of law or public policy, all other conditions
and provisions of this Agreement shall nonetheless remain in full force and effect so long as the
economic or legal substance of the transactions contemplated hereby is not affected in any manner
materially adverse to any Party. Upon such determination that any term or other provision is
invalid, illegal or unenforceable in any respect, the Parties shall negotiate in good faith to
modify this Agreement to effect the original intent of the Parties as closely as possible in an
acceptable manner to the end that transactions contemplated hereby are fulfilled to the fullest
extent possible.

          Section 7.22 Headings. The table of contents and the headings of the Articles and sections
herein are inserted for convenience of reference only and are not intended to be a part of, or to
affect the meaning or interpretation of, this Agreement.

          Section 7.23 Affiliates. The Confirmation Order shall provide that the Affiliates of GM
and Delphi are deemed to have acknowledged and shall be bound by the terms hereof. GM and Delphi
further agree to commercially reasonable efforts to cause their respective Affiliates to sign an
acknowledgement agreeing to be bound by the terms hereof.

GSA-53

 

          Section 7.24 Counterparts. This Agreement may be executed in one or more counterparts,
each of which shall be deemed an original and all of which shall constitute one and the same
Agreement. Electronic delivery of an executed signature page of this Agreement shall be effective
as delivery of a manually executed signature page of this Agreement.

[Signature pages follow.]

GSA-54

 

          IN WITNESS HEREOF, the Parties hereto have caused this Agreement to be duly executed and
delivered by their respective, duly authorized officers, all as of the date first written above.

	 	 	 	 	 	 	 	 	 	 	 
	DELPHI CORPORATION,	 	GENERAL MOTORS CORPORATION
	including on behalf of its Debtor
subsidiaries and Debtor Affiliates	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ John D. Sheehan
	 	 	 	By:
	 	/s/ Frederick A. Henderson	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 

	 	Name: John D. Sheehan
	 	 	 	 	 	Name: Frederick A. Henderson	 	 
	 

	 	Title: Vice President, Chief Restructuring Officer
	 	 	 	 	 	Title: Vice Chairman and Chief
Financial Officer	 	 

GSA-55

 

Exhibit A

Warranty Settlement Agreement

GSA-A-1

 

Exhibit B

IP License

GSA-B-1

 

Exhibit C

Master Restructuring Agreement

GSA-C-1

 

Exhibit D

PHI Protection Agreement

GSA-D-1

 

Exhibit E

Amount of Outstanding Delphi Invoices for which GM Has Withheld Payment Due To

Outstanding Prepetition Activities

GSA-E-1exv10w3xay

 

EXHIBIT 10.3A

EXECUTION COPY

FIRST AMENDMENT TO THE GLOBAL SETTLEMENT AGREEMENT

               THIS FIRST AMENDMENT TO THE GLOBAL SETTLEMENT AGREEMENT (this “Amendment”), is dated
as of October 29, 2007, by and between Delphi Corporation (“Delphi”), on behalf of itself
and its subsidiaries and Affiliates operating as debtors and debtors in possession in the Chapter
11 Cases (together with Delphi, the “Debtors”), and General
Motors Corporation
(“GM”). Capitalized terms not defined herein shall have the meaning ascribed to such terms
in the Agreement.

               WHEREAS, the Debtors commenced jointly administered cases under the United States Bankruptcy
Code, 11 U.S.C. §§ 101-1330, as amended and in effect on October 8, 2005, in the United States
Bankruptcy Court for the Southern District of New York (the “Bankruptcy Court”);

               WHEREAS, Delphi, on behalf of itself and its subsidiaries and Affiliates operating as debtors
and debtors in possession in the Chapter 11 Cases, and GM have entered into a Global Settlement
Agreement dated as of September 6, 2007 (the “Agreement”);

               WHEREAS the Debtors have withdrawn without prejudice all of the 1113/1114 Motions; and

               WHEREAS, Delphi and GM have agreed to amend the Agreement pursuant to this Amendment.

               NOW, THEREFORE, in consideration of the mutual promises, agreements, representations,
warranties and covenants contained herein, each of the parties hereto hereby agrees as follows:

	1.	 	Nineteenth WHEREAS Clause. The date “September ___, 2007” in the nineteenth whereas
clause of the Agreement is hereby replaced with the date “September 6, 2007”.
	 
	2.	 	New Twenty-Second WHEREAS Clause. The following new whereas clause shall be added to
the Agreement after the twenty first whereas clause thereof: “WHEREAS, on or about October
29, 2007, the Debtors filed with the Bankruptcy Court certain proposed amendments to the
Disclosure Statement and Plan and to certain exhibits thereto, including this Agreement and
the Restructuring Agreement;”
	 
	3.	 	Section 1.10 “Benefit Guarantee Term Sheets”. In the definition of “Benefit
Guarantee Term Sheets”, the words “Non-Represented Term Sheet” are hereby deleted and replaced
with the words “Non-Represented Employees Term Sheet”.
	 
	4.	 	New Section 1.24(a) “DHMO”. The following Section 1.24(a) shall be added to the
Agreement after Section 1.24 thereof:
	 
	 	 	““DHMO” shall mean “dental health maintenance organization.””

 

 

	5.	 	Section 1.30 “Effective Date”. Section 1.30 is hereby replaced in its entirety with
the following: ““Effective Date” shall mean the Business Day determined by the Debtors
as provided in Article 1.68 of the Plan on which all conditions to the consummation of the
Plan set forth in Article 12.2 of the Plan have been either satisfied or waived and the day
upon which the Plan is substantially consummated.”
	 
	6.	 	Section 1.32 “EPCA”. Section 1.32 is hereby replaced in its entirety with the
following: ““EPCA” shall mean that certain Equity Purchase and Commitment Agreement,
dated August 3, 2007 as amended pursuant to an amendment filed with the Bankruptcy Court on
October 29, 2007, between Delphi and the Plan Investors, without giving effect to any
subsequent amendments, waivers, or other modifications thereto.”
	 
	7.	 	New Section 1.45(a) “HMO”. The following Section 1.45(a) shall be added to the
Agreement after Section 1.45 thereof:
	 
	 	 	““HMO” shall mean “health maintenance organization.””
	 
	8.	 	Section 1.54 “IP License”. The date “September ___, 2007” in Section 1.54 of the
Agreement is hereby replaced with the date “September 6, 2007”.
	 
	9.	 	Section 1.89 “Plan”. Section 1.89 is amended by adding the words “ and amended as
per the amended terms filed with the Bankruptcy Court on October 29, 2007” after the words
“September 6, 2007”.
	 
	10.	 	Section 1.96 “Restructuring Agreement”. Section 1.96 is hereby replaced in its
entirety with the following: ““Restructuring Agreement” shall mean the Master Restructuring
Agreement between Delphi and GM, dated as of September 6, 2007, as amended.”
	 
	11.	 	Section 2.01 “The Labor MOUs.” In Section 2.01, the words “Non-Represented Term
Sheet” are hereby deleted and replaced with the words “Non-Represented Employees Term Sheet”.
	 
	12.	 	Section 2.02(b)(v). In Section 2.02(b)(v), the word “Final” is hereby deleted and
replaced with the word “final”.
	 
	13.	 	Section 4.04 “Cash to Be Paid to GM”. Section 4.04 is replaced in its entirety with
the following:

               “Consideration to be Received by GM.

               (a) On the Effective Date, and pursuant to the Plan, Delphi shall provide the following
consideration to GM (collectively, the “Consideration”): (i) $1.5 billion in a combination
of at least $750 million in cash and a 2nd lien note (the “GM Note”) with the
amount of such cash and the terms of the GM Note established as set forth in Exhibit F hereto;
provided, however, that terms other than those set forth in Exhibit F and the form
of the GM Note must be satisfactory to GM to the extent that such terms (it being understood that
none of the terms on Exhibit F may be changed without GM’s written consent) or form would have a
material impact on GM, on the benefits GM reasonably is expected to receive under the Plan
(including, without

 

 

limitation, GM’s distributions thereunder), the Restructuring Agreement, or this Agreement, or
on the ability of the Debtors to fulfill any obligations to any GM-Related Parties under the Plan,
the Restructuring Agreement, this Agreement, or any agreements assumed, reinstated, or ratified
under the Restructuring Agreement, and (ii) $1.2 billion in junior preferred convertible stock with
the terms set forth in Exhibit G hereto; provided, however, that terms other than
those set forth in Exhibit G and the form of the certificate of designation of the junior preferred
convertible stock must be satisfactory to GM to the extent that such terms (it being understood
that none of the terms on Exhibit G may be changed without GM’s written consent) or form would have
a material impact on GM, on the benefits GM reasonably is expected to receive under the Plan
(including, without limitation, GM’s distributions thereunder), the Restructuring Agreement, or
this Agreement, or on the ability of the Debtors to fulfill any obligations to any GM-Related
Parties under the Plan, the Restructuring Agreement, this Agreement, or any agreements assumed,
reinstated, or ratified under the Restructuring Agreement.

               (b) The Consideration to be received by GM pursuant to this section 4.04 and the survival of
the GM Surviving Claims shall be in (i) satisfaction of all claims asserted or assertable under
sections 501, 502, 503, 506, and 507 of the Bankruptcy Code or otherwise by the GM-Related Parties
against the Debtors in the Chapter 11 Cases, including those asserted in the GM Proof of Claim, and
(ii) settlement of the GM Proof of Claim.”

	14.	 	Section 5.01 “Bankruptcy Court Filing”. The following sentence shall be added to the
Agreement at the end of Section 5.01 thereof: “Simultaneously with the filing of the proposed
amendments to the Plan with the Bankruptcy Court on or about October 29, 2007, the Debtors
shall file an amendment to this Agreement with the Bankruptcy Court as an exhibit to the
Plan.”
	 
	15.	 	Section 6.01(d). Section 6.01(d) is replaced in its entirety with the following:
“The Effective Date shall have occurred and GM shall have received the Consideration;”.
	 
	16.	 	Section 7.03(e). Section 7.03(e) is replaced in its entirety with the following: “by
GM if it shall not have received the Consideration by March 31, 2008 or, if the EPCA has not
been terminated by such date, the first to occur of the termination of the EPCA or April 30,
2008.”
	 
	17.	 	Section 7.25 October Amendments. The following Section 7.25 shall be added to the
Agreement after Section 7.24 thereof:

               “Notwithstanding anything contained herein, the Parties agree that amendments to be made to
the Plan or the EPCA in the form (other than immaterial and non-substantive changes) of the drafts
of the amendment to the Plan filed with the Bankruptcy Court on October 29, 2007 and the EPCA
amendment filed with the Bankruptcy Court on October 29, 2007, shall not result in the
non-satisfaction of the condition set forth in Section 6.01(c) hereof or in the triggering of the
termination right set forth in Section 7.03(b) hereof.”

	18.	 	Effect of Amendment. On and after the date hereof, each reference in the Agreement
to “this Agreement,” “hereunder,” “hereof,” “herein” or words of like import referring to the
Agreement shall be deemed to mean the Agreement as amended by this Amendment.

 

 

	 	 	This Amendment shall operate as an amendment of the provisions of the Agreement referred to
specifically herein. The amendments to the Agreement contemplated by this Amendment are
limited precisely as written and shall not be deemed to be an amendment to any other terms
or conditions of the Agreement. Except as specifically amended by this Amendment and as set
forth in the preceding sentence, the Agreement, subject to the provisions of Article VI
thereof, shall remain in full force and effect. Except as expressly provided herein, this
Amendment shall not be deemed to be a waiver of, or consent to, or a modification or
amendment of, any other term or condition of the Agreement.
	 
	19.	 	Termination of Amendment. Notwithstanding anything to the contrary in this
Amendment, (i) if the EPCA amendment in the form filed with the Bankruptcy Court on October
29, 2007 (other than with immaterial and non-substantive changes), has not have been signed by
all parties to the EPCA by November 17, 2007 or the Bankruptcy Court has not entered an order
approving such amendment that has become a Final Order by November 30, 2007, this Amendment
shall be terminable by either Delphi or GM upon the provision of written notice to the other
party, and (ii) upon provision of such written notice, this Amendment shall be null and void
as if it had never been entered into by Delphi and GM.
	 
	20.	 	Miscellaneous. The provisions of Sections 7.05, 7.06, 7.08, 7.09, 7.10, 7.12, 7.13,
7.14, 7.15, 7.16, 7.17, 7.18, 7.19, 7.20, 7.21, 7.22 and 7.24 of the Agreement shall apply to
this Amendment.

[Signature Page Follows]

 

 

     IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be signed by their
respective officers thereunto duly authorized, all as of the date first written above.

	 	 	 	 	 	 	 	 	 	 	 
	DELPHI CORPORATION,	 	 	 	GENERAL MOTORS CORPORATION	 	 
	including on behalf of its Debtor subsidiaries

and Debtor Affiliates	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ John D. Sheehan
 

Name: John D. Sheehan
	 	 	 	By:
	 	/s/ Frederick A. Henderson
 

Name: Frederick A. Henderson
	 	 
	 

	 	Title: Vice President, Chief Restructuring Officer
	 	 	 	 	 	Title: Vice Chairman and Chief Financial Officer	 	 

 

 

EXHIBIT F

     The terms of the GM Note shall be determined as follows:

	 	o	 	2nd lien exit financing of $1.5 billion (net of
OID1) having a maturity of 8 years from the date of initial issuance,
and issued under a single credit facility, allocated as follows:

	 	§	 	At least $750 million (net of OID) in a note with market clearing terms
and covenants acceptable to Delphi to be raised from a third-party
financing source prior to emergence. All cash proceeds from the
2nd lien financing to be paid to GM.2
	 
	 	§	 	$750 million (net of OID), as reduced by any cash proceeds above $750
million as referred to above or as reduced below, in a note provided to GM
having the same terms as provided in connection with the third-party
financing. The 2nd lien credit agreement will provide that at
any time that GM holds more than $500 million (net of OID) of the Notes
that any matter requiring approval of less than 100% of the Noteholders
shall require the following approvals to be effective: (1) if GM votes in
favor of the matter, the approval of at least one-third of the non-GM
Noteholders (determined by principal amount); or (2) if GM does not vote in
favor of the matter, the approval of at least two-thirds of the non-GM
Noteholders (determined by principal amount). No other special voting
rights shall be included in the 2nd lien credit agreement.
	 
	 	§	 	Third party financing source (i.e., the initial purchaser or
underwriter) will have the right, through the emergence date, to replace GM
on up to $500 million (net of OID) of the note being provided to GM in
which case cash in the amount of any such replacement shall be paid to GM
and its note (net of OID) shall be reduced by such amount.
	 
	 	§	 	If the 1st lien exit financing is greater than $3.7 billion (net of
OID), an amount of cash equal to such excess (the “Excess Amount”) will be
paid to GM as part of its recovery and the 2nd lien financing will be
reduced by such amount (with at least 50% of the remaining 2nd lien
financing allocated to the third party financing source), provided that the
sum of (i) undrawn availability plus any open letters of credit up to $100
million pursuant to an ABL revolving credit facility and (ii) Delphi’s pro
forma consolidated cash as of the Effective Date (excluding the Excess
Amount

 

			
	1	 	For all purposes of this Exhibit, OID excludes any fees
paid to underwriters or agents
	 
	2	 	To the extent that the ABL revolving credit facility
(to the exclusion of any other portion of the 1st lien exit facility) has a
first priority lien on any assets and the term loan portion of the
1st lien financing has a 2nd lien, the notes subject to
the 2nd lien financing shall have a third lien on such assets.

 

 

	 	 	 	and after giving pro forma effect to the $1.5 billion cash payment to GM in
connection with the 414(l) transaction) (the “Liquidity Amount”) is at least
$3.189 billion. In the event that the Liquidity Amount is less than $3.189
billion, then any Excess Amount shall be retained by Delphi up to the point
that the amount of such Excess Amount retained plus the Liquidity Amount
equals $3.189 billion and the remaining amount shall be paid to GM and the
2nd lien financing will be reduced by such amount paid to GM as provided
above.
	 
	 	o	 	GM shall not have registration rights with respect to the GM Note.
	 
	 	o	 	Subject to the following sentence, the collateral and guarantee package
for the 2nd lien financing will be substantially the same as that for
the 1st lien financing. The 2nd lien facility shall not have
a lien on the assets (other than the stock of the first tier foreign subsidiaries)
solely securing the European portions of the 1st lien facility.
	 
	 	o	 	The GM Note shall be subject to a 6 month lock-up from the
effectiveness of the Plan of Reorganization, provided however that, during such
lock-up period, GM shall not be restricted from selling second lien notes if such
notes are sold to investors at a price at least equal to par less any original
issue discount (the “Threshold Price”), or below the Threshold Price, if GM makes a
pro rata payment to the other holders of 2nd lien notes equal to the
product of (i) the absolute difference (measured in basis points) between the
actual price at which GM notes are sold by GM and the Threshold Price and (ii) the
face amount of the 2nd lien notes held by others prior to giving effect to the sale
of the GM notes.

2

 

	 	 	 
	Cooperation with Marketing

	 	At any time and from time to time after the six month anniversary of the
effectiveness of the Plan of Reorganization (or sooner after such effectiveness if the
anticipated sales of the notes shall be in accordance with the foregoing provisions of Exhibit
F), upon the delivery of a notice from GM that it intends to market no less than $175 million
in principal amount of the Notes with a proposed closing date no less than 20 days from the
date of such notice, the Company shall use commercially reasonable efforts to take all actions
that GM may reasonably request as being required in connection with the marketing, sale or
syndication of the Notes, including, as soon as reasonably practical, (i) assisting in the
preparation of a confidential information memorandum and other marketing material, and if the
Notes are not then rated, rating agency material, (ii) making appropriate officers of the
Company available for meetings and/or calls with potential lenders, and if the Notes are not
then rated, rating agencies, at such times and places as GM may reasonably request, (iii)
subject to reasonably satisfactory confidentiality arrangements, provide all information
concerning the Company reasonably requested by GM for the successful marketing, sale or
syndication of the Notes, and (iv) subject to reasonably satisfactory confidentiality
arrangements, provide to GM the names, and contact details of, and the amount of Notes held by
all other holders of Notes. In connection with any marketing, sale or syndication of the
Notes, the Company will cause its officers to execute and deliver all customary documents
reasonably requested under the circumstances by GM, its counsel and any book running managers
or syndication agents and to the extent requested by GM will otherwise provide GM with
reasonable and customary cooperation and assistance under the circumstances. GM and the
Company shall each bear their own out of pocket expenses and other costs incurred in
connection with the foregoing (it being understood that GM shall pay the fees and expenses of
any book running mangers or syndication agents engaged in the marketing of the Notes that GM
holds).

3

 

	 	 	 
	 

	 	Notwithstanding the foregoing, in no event shall the
Company be required to (A) take any actions that
are not customarily taken by issuers in
connection with the initial issuance of
indebtedness similar to the Notes, (B) enter into
any agreements with any book running manager or
syndication agent other than, if the conditions
set forth in the following sentence are
satisfied, any such agreement that both (I) is
with one or more nationally recognized investment
banks, and (II) does not impose any obligation on
the Company other than (x) customary and
reasonable indemnifications under the
circumstances and (y) other obligations
consistent with the foregoing provisions of this
section, (C) amend or otherwise modify the terms
of the Notes or (D) agree to not issue or market
other indebtedness during the marketing period
for the Notes
	 
	 	 
	 

	 	The Company shall not be obligated to enter into any
such agreements with any such book running
manager or syndication agent unless: (i) the
Company has approved such book running manager or
syndication agent, such approval not to be
unreasonably withheld; (ii) the Company has the
right to approve, such approval not to be
unreasonably withheld, any confidential offering
memorandum and all other marketing material and,
if the Notes are not then rated, rating agency
material to be used in connection with such
marketing, sale or syndication of the Notes; and
(iii) the indemnifications by the Company set
forth therein have exceptions for willful
misconduct or gross negligence on the part of GM,
the book running manager(s) or syndication
agent(s) and other customary and reasonable
exceptions.

4

 

EXHIBIT G

SUMMARY OF TERMS OF SERIES C PREFERRED STOCK

     Set forth below is a summary of indicative terms for the preferred stock of Delphi Corporation
to be issued to General Motors Corporation pursuant to a Plan of Reorganization of Delphi
Corporation under chapter 11 of the Bankruptcy Code. No party shall be bound by the terms hereof
and only execution and delivery of definitive documentation relating to the transaction shall
result in any binding or enforceable obligations of any party relating to the transaction.

	 	 	 
	Issuer:

	 	Delphi Corporation (the “Company”), a corporation organized
under the laws of Delaware and a successor to Delphi
Corporation, as debtor in possession in the chapter 11
reorganization case (the “Bankruptcy Case”) pending in the
United States Bankruptcy Court for the Southern District of New
York.
	 
	 	 
	Series C Preferred

Stock Holder:

	 	General Motors Corporation (“GM”).
	 
	 	 
	Securities to be 
Issued:

	 	26,666,667 shares of Series C Convertible
Preferred Stock, par value $0.01 per share
(the “Series C Preferred Stock”) with a
stated value of $45 per share (the “Stated
Value”).
	 
	 	 
	Liquidation
 Preference:

	 	In the event of any liquidation,
dissolution or winding up of the Company,
whether voluntary or involuntary, each
share of Series C Preferred Stock shall
receive, out of legally available assets of
the Company, a preferential distribution in
cash in an amount equal to the Stated Value
plus any unpaid dividends to which it is
entitled. Consolidation or merger or sale
of all or substantially all of the assets
of the Company shall not be a liquidation,
dissolution or winding up of the Company.
	 
	 	 
	Ranking:

	 	Junior to the Company’s Series A-1 Senior
Convertible Preferred Stock, Series A-2
Senior Convertible Preferred Stock and
Series B Senior Convertible Preferred Stock
(the “Senior Preferred Stock”) with respect
to any distributions upon liquidation,
dissolution or winding up of the Company.
Senior to Common Stock with respect to any
distributions upon liquidation,
dissolution, winding up of the Company.
The Company shall be permitted to issue new
capital stock that is senior to or pari
passu with the Series C Preferred Stock
with respect to distributions upon
liquidation, dissolution or winding up and
other rights.
	 
	 	 
	 

	 	While any bankruptcy event is pending: (i)
there shall be no dividends or other
distributions on shares of Common Stock or
other securities that do not, by their
terms, rank senior to or pari passu with
the Series C Preferred Stock (“Junior
Stock”) or any purchase, redemption,

 

 

	 	 	 
	 

	 	retirement or other acquisition for value
or other payment in respect of Junior Stock
unless the Series C Preferred Stock is paid
its Stated Value plus any dividends to
which it is entitled in full; and (ii)
there shall be no such dividends,
distributions, purchases, redemptions, retirement, acquisitions or payments on
Junior Stock in each case in cash unless
the Series C Preferred Stock has first been
paid in full in cash its Stated Value plus
any unpaid dividends to which it is
entitled.
	 
	 	 
	Conversion of Preferred Stock into Common Stock:

	 	Each share of Series C Preferred Stock
shall be convertible at any time, without
any payment by the Series C Preferred Stock
Holder, into a number of shares of Common
Stock equal to (i) the Stated Value divided
by (ii) the Conversion Price. The
Conversion Price shall initially be $45,
subject to adjustment from time to time
pursuant to the anti-dilution provisions of
the Series C Preferred Stock (as so
adjusted, the “Conversion Price”). The
anti-dilution provisions will be identical
to the anti-dilution protection afforded to
the Series B Senior Convertible Preferred
Stock.1 Any unpaid dividends to
which the Series C Preferred Stock is
entitled shall be paid upon any such
conversion.
	 
	 	 
	 

	 	Any Series C Preferred Stock held by GM or
its affiliates that is converted into
Common Stock shall be converted into shares
of Common Stock which, so long as such
shares are held by GM or its affiliates,
cannot be voted other than with respect to
(a) an NPIF Transaction (as defined below)
and (b) a Change of Control Transaction (as
defined below) in which the consideration
to be paid for such shares of Common Stock
held by GM or its affiliates is not (i)
equal to or greater than $45 per share of
such Common Stock (with such $45 per share
consideration to be proportionally adjusted
to reflect any stock splits or stock
recombinations effecting such shares of
Common Stock) and (ii) paid in full in
cash; provided, that upon the transfer by
GM or its affiliates of such Common Stock
to a transferee that is not GM or an
affiliate of GM, the restriction on voting
such Common Stock shall no longer apply.
	 
	 	 
	Dividends:

	 	None, except that if any dividends are
declared and paid on the Common Stock, each
share of Series C Preferred Stock shall be
entitled to receive the dividends that
would have been payable on the number of
shares of Common Stock that would have been
issued with respect to such share had it
been converted into Common Stock
immediately prior to the record date for
such dividend (“Dividend Participation”).
At such time as the Company has declared
and paid four consecutive quarterly cash

 

			
	1	 	If a “Fundamental Change” occurs (i.e., merger,
consolidation, asset sale, etc.) in which all or substantially all Common Stock
is exchanged for or converted into stock, other securities, cash or assets, the
Senior Preferred Stock has the right upon any subsequent conversion to receive
the kind and amount of stock, other securities, cash and assets that it would
have received if it had been converted immediately prior thereto. Series C
Preferred Stock will also get this.

2

 

	 	 	 
	 

	 	dividends on Common Stock and paid the
Dividend Participation in full on the
Series C Preferred Stock, the Series C
Preferred Stock shall no longer be entitled
to Dividend Participation.
	 
	 	 
	Voting Rights:

	 	The Series C Preferred Stock will not have
any voting rights, except with respect to a
Change of Control Transaction (as defined
below) in which adequate provision is not
made for the Series C Preferred Stock to be
paid Stated Value and any unpaid dividends
to which it is entitled in full in cash (an
“NPIF Transaction”), it being understood
that the making of the cash tender offer
referred to in “Change of Control” below
shall be deemed to constitute adequate
provision being made for payment in full in
cash; provided, that nothing shall prohibit
the Series C Preferred Stock from being
voted in any manner to the extent required
by Section 242(b)(2) of the Delaware
General Corporation Law. With respect to
an NPIF Transaction, each share of Series C
Preferred Stock shall be entitled to a
number of votes equal to the votes that it
would otherwise have on an “as converted”
basis. Upon a transfer by GM or its
affiliates of the Series C Preferred Stock
to someone other than GM or its affiliates
in which there is no automatic conversion
into Common Stock, as provided below under
“Transferability,” the Series C Preferred
Stock will vote, on an “as converted”
basis, together with the holders of the
Common Stock, on all matters submitted to
the holders of Common Stock.
	 
	 	 
	Mandatory
 Redemption:

	 	So long as no bankruptcy event is pending,
the Company shall redeem up to $1 billion
of outstanding Series C Preferred Stock to
the extent of the proceeds received from
exercise, within the six months following
the effective date of the Company’s plan of
reorganization, of warrants to be issued to
the existing Common Stock holders pursuant
to the Company’s plan of reorganization.
Any such redemption of shares of Series C
Preferred Stock shall be by payment in cash
equal to the Stated Value plus any unpaid
dividends to which it is entitled.
	 
	 	 
	Transferability:

	 	Upon any direct or indirect sale, transfer,
assignment, pledge or other disposition (a
“Transfer”) of any Series C Preferred Stock
(other than a Transfer to an affiliate of
GM or any Transfer completed at a time when
there is a pending acceleration under the
Company’s exit financing facility or any
refinancing thereof), such Transferred
Series C Preferred Stock shall
automatically be converted into Common
Stock at the then applicable Conversion
Price.
	 
	 	 
	 

	 	The Series C Preferred Stock and the shares
of Common Stock underlying such Series C
Preferred Stock, or any interest or
participation therein shall be subject to
the same 90-day transfer restriction
applicable to Series B Senior Convertible
Preferred Stock.

3

 

	 	 	 
	Amendments:

	 	No provision of the certificate of
designations for the Series C Preferred
Stock may be repealed or amended in any
respect unless such repeal or amendment is
approved by the affirmative vote of the
holders of a majority in aggregate Stated
Value of the then outstanding Series C
Preferred Stock.
	 
	 	 
	Registration Rights:

	 	GM shall be a party to the Registration
Rights Agreement to which the holders of
the Senior Preferred Stock are a party and
GM and its affiliates shall be entitled to
the same registration rights with respect
to Common Stock underlying Series C
Preferred Stock, which shall be deemed to
be registrable securities, as are available
with respect to the shares of Common Stock
underlying the Series B Preferred Stock
(other than with respect to the demand
registration granted to holders of a
majority of shares of Series B Preferred
Stock). As a party to the Registration
Rights Agreement, GM and its affiliates
shall also be entitled to one demand
registration (without the consent of any
holders of the Senior Preferred Stock) in
addition to the demand registrations after
the Company is eligible to use Form S-3;
provided, however, that any transferees of
the shares of Common Stock underlying the
Series C Preferred Stock, other than GM or
an affiliate of GM, shall not be entitled
to such demand registration (but shall be
entitled to piggyback rights under the
Registration Rights Agreement, subject to
customary cutback provisions).
	 
	 	 
	Change of Control:

	 	In a merger, consolidation or sale of the
Company involving a change of control of
the Company (a “Change of Control
Transaction”), holders of Series C
Preferred Stock may elect to require (the
“Change of Control Put”) that such holder’s
shares of Series C Preferred Stock be
redeemed by the Company for consideration,
payable in cash and/or freely tradable
marketable securities equal to the greater
of (i) the consideration with a value equal
to the fair market value of the Series C
Preferred Stock and (ii) the Stated Value
plus any unpaid dividends to which it is
entitled. The Series C Preferred Stock may
only receive payment with respect to its
Change of Control Put if each holder of
Senior Preferred Stock who has elected to
exercise its redemption option in a Change
of Control Transaction has first received
payment in full in cash and/or freely
tradable marketable securities upon
exercise of its redemption option. The
Company may not engage in any Change of
Control Transaction unless adequate
provision is made for the payment of the
Change of Control Put in full. For the
purpose of this provision, equity
securities that are listed on a national
stock exchange and debt that is registered,
or 144A debt instruments which contain
customary A/B exchange registration rights,
shall be marketable securities.
	 
	 	 
	 

	 	The holders of Senior Preferred Stock also
have a redemption right with respect to a
Change of Control Transaction (the “Senior
Put Option”).

4

 

	 	 	 
	 

	 	The holders of Series C
Preferred Stock shall be entitled to
receive, as consideration in a Change of
Control Put, the same percentage of cash
consideration as was paid or, but for the
failure of the holders of Senior Preferred
Stock to exercise the Senior Put Option,
would have been paid to the holders of
Senior Preferred Stock in connection with
the exercise of a Senior Put Option;
provided, that no holder of Series C
Preferred Stock shall be entitled to any
cash consideration upon exercise of a
Change of Control Put if such cash
consideration would result in Series C
Preferred Stock receiving more cash, in the
aggregate, than would have been payable to
all holders of Senior Preferred Stock upon
exercise of their Senior Put Options
(unless holders of Senior Preferred Stock
are entitled to receive payment on the
exercise of the Senior Put Option of 100%
in cash, in which case there shall be no
limit on the cash payable to Series C
Preferred Stock with respect to a Change of
Control Put).
	 
	 	 
	 

	 	In the event of a Change of Control Put
where all or a part of the consideration to
be received is marketable securities, the
fair market value of such securities shall
be determined as follows:

	 	•	 	If the consideration to be received
is an existing publicly traded security,
the fair market value shall be determined
based on the market value of such security.
	 
	 	•	 	If the consideration to be received
is not an existing publicly traded
security, the fair market value (taking
into account the liquidity of such
security) shall reasonably be determined by the board of directors of the Company in
good faith. If the holders of the Series
A, B or C Preferred Stock object to the
valuation of the board of directors, they
may request that an appraisal be conducted
to determine the fair market value of the
consideration (taking into account the
liquidity of such security). If such a
request is made, the determination of the
fair market value of the consideration
shall be made by a nationally recognized
investment banking, appraisal or valuation
firm selected by the holders of the Series
A, B and C Preferred Stock. If such
holders cannot agree on a mutually
acceptable appraisal firm, then the holders
of the Series A-1 and A-2 Senior
Convertible Preferred Stock, on the one
hand, and the Series C Preferred Stock, on
the other hand, shall each choose one
appraisal firm and the respective chosen
firms shall agree on another appraisal firm
which shall make the determination. The
cost of such appraisal shall be borne by
the Company.
	 
	 	•	 	The determination of the fair
market value of the consideration received
in a Change of Control Transaction shall be
determined within appropriate time periods
to be agreed upon.

5

 

	 	 	 
	 

	 	If, in connection with any Change of
Control, the Company (or the acquiring
company) makes a cash tender offer for all
outstanding Senior Preferred Stock and
Series C Preferred Stock, for at least the
Stated Value of such securities (plus any
accrued and/or unpaid dividends to which
such securities are entitled), then the
Change of Control Put right shall be deemed
to have been satisfied.

6

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00132-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00132-of-00352.parquet"}]]