Document:

EX-10(W)(1)

 

Exhibit 10-W(1)

FIRST AMENDMENT TO AGREEMENT TO PURCHASE ASSETS AND STOCK

     THIS FIRST AMENDMENT TO AGREEMENT TO PURCHASE ASSETS AND STOCK (this “Amendment”),
dated as of June 5, 2007, by and between ORHAN HOLDING, A.S., an anonim sirket organized under the
laws of the Republic of Turkey (“Orhan”), and DANA CORPORATION, a corporation organized
under the laws of the Commonwealth of Virginia (“Dana”).

RECITALS

     A. Orhan and Dana are parties to that certain Agreement to Purchase Assets and Stock, dated as
of March 28, 2007 (the “Agreement”).

     B. The parties desire to amend the Agreement on the terms and conditions set forth in this
Amendment.

AGREEMENT

     In consideration of the foregoing, and for other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the parties, intending to be legally bound, agree
as follows:

     1. Amendment to Section 2.1(a). Section 2.1(a) is amended to delete the dollar figure
“$70 million” and replace it with “$85 million.”

     2. Amendment to Section 4.19. Section 4.19 is amended to add at the end thereof the
following sentence: “All of the assets specifically identified on Schedules as Purchased Assets
are primarily related to the Business.”

     3. Amendment to Section 5.1(b). Section 5.1(b) is amended to insert the words “or
other entity” after the word “corporation” in the first line thereof.

     4. Amendment to Section 6.6. The first sentence of Section 6.6 is amended to insert
the parenthetical phrase “(together with all other breaches which have not been cured)” after the
word “breach” and before the word “causes” at the end of the third line thereof.

     5. Amendment to Subsection 7.4(a)(ii). Subsection 7.4(a)(ii) is amended to insert the
word “reasonable” after the word “all” and before the word “steps” in the fourth line thereof.

     6. Amendments to Section 7.5(a). Section 7.5(a) is amended to delete the last
sentence thereof in its entirety.

     7. Continuance of Agreement; Single Document. Except as expressly amended by this
Amendment, all provisions of the Agreement remain in full force and effect. The Agreement, as
amended by this Amendment, will hereinafter be read as a single, integrated document, incorporating
the changes effected by this Amendment.

-1-

 

     8. Counterparts. This Amendment may be executed by the parties hereto in
counterparts, each of which shall be deemed to be an original, but all such counterparts taken
together shall constitute a single instrument.

     IN WITNESS WHEREOF, the parties have caused this First Amendment to Agreement to Purchase and
Assets and Stock to be executed as of the date set forth above.

	 	 	 	 	 
	 	ORHAN HOLDING, A.S., an anonim sirket 
organized under
the laws of the Republic of Turkey

 	 
	 	By:  	/s/ Murat Orhan
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	DANA CORPORATION, a corporation organized under the
laws of the Commonwealth of Virginia

 	 
	 	By:  	/s/ Bill Riley
 	 
	 	 	Name:  	Bill Riley 	 
	 	 	Title  Director – Corporate Development 	 
	 

	 	 	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 

-2-EX-10(X)

 

Exhibit 10-X

ASSET PURCHASE AGREEMENT

BY AND BETWEEN

COUPLED PRODUCTS ACQUISITION LLC

AND

DANA CORPORATION

Dated as of May 28, 2007

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	ARTICLE I THE PURCHASE AND SALE
	 	 	1	 
	 
	 	 	 	 
	Section 1.1 Purchase and Sale of the Purchased Assets
	 	 	1	 
	Section 1.2 Excluded Assets
	 	 	3	 
	Section 1.3 Assumed Liabilities
	 	 	5	 
	Section 1.4 Excluded Liabilities
	 	 	6	 
	 
	 	 	 	 
	ARTICLE II CONSIDERATION
	 	 	8	 
	 
	 	 	 	 
	Section 2.1 Amount and Form of Consideration
	 	 	8	 
	Section 2.2 Adjustment
	 	 	9	 
	Section 2.3 Payment of Net Working Assets Adjustment
	 	 	10	 
	Section 2.4 Allocation of Consideration
	 	 	11	 
	Section 2.5 Deposit
	 	 	11	 
	 
	 	 	 	 
	ARTICLE III THE CLOSING
	 	 	12	 
	 
	 	 	 	 
	Section 3.1 Closing Date
	 	 	12	 
	Section 3.2 Deliveries by Seller to Purchaser
	 	 	12	 
	Section 3.3 Deliveries by Purchaser to Seller
	 	 	13	 
	Section 3.4 Proceedings at Closing
	 	 	14	 
	 
	 	 	 	 
	ARTICLE IV REPRESENTATIONS AND WARRANTIES OF SELLER
	 	 	14	 
	 
	 	 	 	 
	Section 4.1 Organization and Qualification
	 	 	14	 
	Section 4.2 Corporate Authorization
	 	 	14	 
	Section 4.3 Consents and Approvals
	 	 	14	 
	Section 4.4 Non-Contravention
	 	 	15	 
	Section 4.5 Binding Effect
	 	 	15	 
	Section 4.6 Financial Statements
	 	 	15	 
	Section 4.7 Taxes
	 	 	15	 
	Section 4.8 Real Property
	 	 	16	 
	Section 4.9 Tangible Personal Property
	 	 	18	 
	Section 4.10 Intellectual Property
	 	 	18	 
	Section 4.11 Contracts
	 	 	20	 
	Section 4.12 Employee Benefits
	 	 	22	 
	Section 4.13 Employee and Labor Matters
	 	 	23	 
	Section 4.14 Litigation
	 	 	26	 
	Section 4.15 Compliance with Laws
	 	 	26	 
	Section 4.16 Environmental Matters
	 	 	26	 
	Section 4.17 Ownership of Necessary Assets and Rights
	 	 	27	 
	Section 4.18 Brokers
	 	 	28	 

i

 

	 	 	 	 	 
	 	 	Page	 
	Section 4.19 Permits
	 	 	28	 
	Section 4.20 [Intentionally omitted]
	 	 	28	 
	Section 4.21 No Undisclosed Liabilities
	 	 	29	 
	Section 4.22 Accounts Receivable; Inventories
	 	 	29	 
	Section 4.23 Customers and Suppliers
	 	 	29	 
	Section 4.24 Warranties; Product Defects
	 	 	29	 
	Section 4.25 Disclaimers of Seller
	 	 	30	 
	Section 4.26 No Material Misstatements
	 	 	30	 
	Section 4.27 No Other Representations or Warranties
	 	 	31	 
	 
	 	 	 	 
	ARTICLE V REPRESENTATIONS AND WARRANTIES OF PURCHASER
	 	 	31	 
	 
	 	 	 	 
	Section 5.1 Organization and Qualification
	 	 	31	 
	Section 5.2 Corporate Authorization
	 	 	31	 
	Section 5.3 Consents and Approvals
	 	 	31	 
	Section 5.4 Non-Contravention
	 	 	32	 
	Section 5.5 Binding Effect
	 	 	32	 
	Section 5.6 Litigation
	 	 	32	 
	Section 5.7 Financing
	 	 	32	 
	Section 5.8 Brokers
	 	 	32	 
	Section 5.9 No Inducement or Reliance; Independent Assessment
	 	 	33	 
	 
	 	 	 	 
	ARTICLE VI COVENANTS OF SELLER
	 	 	33	 
	 
	 	 	 	 
	Section 6.1 Access/Survey
	 	 	33	 
	Section 6.2 Conduct of Business
	 	 	34	 
	Section 6.3 Bankruptcy Actions
	 	 	36	 
	Section 6.4 Regulatory Approvals
	 	 	37	 
	Section 6.5 Assignment of Debtor Contracts
	 	 	38	 
	Section 6.6 Cure of Defaults
	 	 	39	 
	Section 6.7 Amendment of Purchased and Excluded Assets
	 	 	39	 
	Section 6.8 Updating of Information
	 	 	39	 
	Section 6.9 Litigation Support
	 	 	40	 
	Section 6.10 Transition Agreements
	 	 	40	 
	Section 6.11 Consents and Conditions
	 	 	40	 
	Section 6.12 Further Actions
	 	 	41	 
	 
	 	 	 	 
	ARTICLE VII COVENANTS OF PURCHASER
	 	 	41	 
	 
	 	 	 	 
	Section 7.1 Contact with Customers, Suppliers and Employees
	 	 	41	 
	Section 7.2 Bankruptcy Actions
	 	 	41	 
	Section 7.3 Consents and Conditions
	 	 	41	 
	Section 7.4 Further Actions
	 	 	43	 
	Section 7.5 [Intentionally Omitted.]
	 	 	43	 
	Section 7.6 Use of Seller’s Name
	 	 	43	 
	Section 7.7 Litigation Support
	 	 	44	 
	Section 7.8 Transition Agreements
	 	 	44	 

ii

 

	 	 	 	 	 
	 	 	Page	 
	ARTICLE VIII CONDITIONS PRECEDENT TO PURCHASER’S OBLIGATIONS
	 	 	44	 
	 
	 	 	 	 
	Section 8.1 Accuracy of Representations and Warranties
	 	 	45	 
	Section 8.2 Performance of Covenants
	 	 	45	 
	Section 8.3 No Injunctions
	 	 	45	 
	Section 8.4 Entry of Order By Bankruptcy Court; Material Business Contracts
	 	 	45	 
	Section 8.5 Consents
	 	 	45	 
	Section 8.6 Officer’s Certificate
	 	 	45	 
	Section 8.7 Other Deliveries
	 	 	45	 
	Section 8.8 No Material Adverse Effect
	 	 	46	 
	Section 8.9 Mexican Permits
	 	 	46	 
	Section 8.10 Exon-Florio
	 	 	46	 
	Section 8.11 SLP II
	 	 	46	 
	 
	 	 	 	 
	ARTICLE IX CONDITIONS PRECEDENT TO SELLER’S OBLIGATIONS
	 	 	46	 
	 
	 	 	 	 
	Section 9.1 Accuracy of Representations and Warranties
	 	 	46	 
	Section 9.2 Performance of Covenants
	 	 	47	 
	Section 9.3 No Injunctions
	 	 	47	 
	Section 9.4 Entry of Order By Bankruptcy Court
	 	 	47	 
	Section 9.5 Consents
	 	 	47	 
	Section 9.6 Officer’s Certificate
	 	 	47	 
	Section 9.7 Other Deliveries
	 	 	47	 
	 
	 	 	 	 
	ARTICLE X ADDITIONAL POST-CLOSING COVENANTS
	 	 	47	 
	 
	 	 	 	 
	Section 10.1 Transferred Employees
	 	 	47	 
	Section 10.2 Seller Benefits Plans
	 	 	55	 
	Section 10.3 Assumed Benefit Plans
	 	 	56	 
	Section 10.4 Non-U.S. Employee Matters
	 	 	57	 
	Section 10.5 Further Assurances; Further Conveyances and Assumptions; Consent of Third Parties
	 	 	57	 
	Section 10.6 Record Retention, Access to Documents and Cooperation
	 	 	       58	 
	Section 10.7 Post-Closing Assistance
	 	 	59	 
	 
	 	 	 	 
	ARTICLE XI SURVIVAL, INDEMNIFICATION AND RELATED MATTERS
	 	 	59	 
	 
	 	 	 	 
	Section 11.1 Survival
	 	 	59	 
	Section 11.2 Indemnification
	 	 	60	 
	Section 11.3 Limitations on Amount
	 	 	62	 
	Section 11.4 Procedures for Indemnification
	 	 	63	 
	Section 11.5 Certain Environmental Matters
	 	 	64	 
	Section 11.6 Exclusive Remedy
	 	 	66	 
	 
	 	 	 	 
	ARTICLE XII NONSOLICITATION
	 	 	66	 
	 
	 	 	 	 
	Section 12.1 Nonsolicitation of Purchaser Employees
	 	 	66	 

iii

 

	 	 	 	 	 
	 	 	Page	 
	Section 12.2 Nonsolicitation of Seller Employees
	 	 	66	 
	Section 12.3 Remedies
	 	 	67	 
	 
	 	 	 	 
	ARTICLE XIII TERMINATION
	 	 	67	 
	 
	 	 	 	 
	Section 13.1 Termination
	 	 	67	 
	Section 13.2 Effect of Termination
	 	 	68	 
	 
	 	 	 	 
	ARTICLE XIV TAX MATTERS
	 	 	70	 
	 
	 	 	 	 
	Section 14.1 Tax Indemnification
	 	 	70	 
	Section 14.2 Cooperation
	 	 	71	 
	Section 14.3 Tax Treatment of Indemnification Payments
	 	 	71	 
	Section 14.4 Transfer Taxes
	 	 	71	 
	Section 14.5 Other Agreements
	 	 	72	 
	 
	 	 	 	 
	ARTICLE XV DEFINITIONS AND TERMS
	 	 	72	 
	 
	 	 	 	 
	Section 15.1 Affiliate
	 	 	72	 
	Section 15.2 Agreement
	 	 	72	 
	Section 15.3 Allocation Schedule
	 	 	72	 
	Section 15.4 Alternative Transaction
	 	 	72	 
	Section 15.5 Approval Order
	 	 	72	 
	Section 15.6 Assumed Benefit Plans
	 	 	73	 
	Section 15.7 Assumed Collective Bargaining Agreements
	 	 	73	 
	Section 15.8 Assumed Liabilities
	 	 	73	 
	Section 15.9 Bankruptcy Avoidance Actions
	 	 	73	 
	Section 15.10 Bankruptcy Code
	 	 	73	 
	Section 15.11 Bankruptcy Court
	 	 	73	 
	Section 15.12 Bidding Procedures Order
	 	 	73	 
	Section 15.13 Bidding Procedures
	 	 	74	 
	Section 15.14 Business
	 	 	74	 
	Section 15.15 Business Day
	 	 	74	 
	Section 15.16 Business Employee Benefit Plan
	 	 	74	 
	Section 15.17 Business Employee
	 	 	74	 
	Section 15.18 Cases
	 	 	74	 
	Section 15.19 CERCLA
	 	 	74	 
	Section 15.20 Chapter 11 Expenses
	 	 	74	 
	Section 15.21 Chosen Court
	 	 	75	 
	Section 15.22 Closing
	 	 	75	 
	Section 15.23 Closing Date
	 	 	75	 
	Section 15.24 Closing Date Business Employees
	 	 	75	 
	Section 15.25 Closing Net Working Assets
	 	 	75	 
	Section 15.26 Closing Statement of Net Assets
	 	 	75	 
	Section 15.27 COBRA
	 	 	75	 
	Section 15.28 Code
	 	 	75	 
	Section 15.29 Columbia City 401(k) Plan
	 	 	75	 

iv

 

	 	 	 	 	 
	 	 	Page	 
	Section 15.30 Commitments
	 	 	75	 
	Section 15.31 Contract
	 	 	76	 
	Section 15.32 Cure Costs
	 	 	76	 
	Section 15.33 Current Employees
	 	 	76	 
	Section 15.34 Dana Defined Contribution Plan
	 	 	76	 
	Section 15.35 Dana Retirement Plan
	 	 	76	 
	Section 15.36 Debtor Contracts
	 	 	76	 
	Section 15.37 Debtors
	 	 	76	 
	Section 15.38 Deposit Agent
	 	 	76	 
	Section 15.39 Deposit Agreement
	 	 	76	 
	Section 15.40 Deposit Amount
	 	 	76	 
	Section 15.41 Employee Benefit Plan
	 	 	76	 
	Section 15.42 Endorsements
	 	 	77	 
	Section 15.43 Environment
	 	 	77	 
	Section 15.44 Environmental Law
	 	 	77	 
	Section 15.45 Environmental Assessments
	 	 	78	 
	Section 15.46 Environmental Condition
	 	 	78	 
	Section 15.47 Environmental Testing Period
	 	 	78	 
	Section 15.48 ERISA
	 	 	78	 
	Section 15.49 Estimated Adjustment Amount
	 	 	78	 
	Section 15.50 Excluded Assets
	 	 	78	 
	Section 15.51 Excluded Intellectual Property
	 	 	78	 
	Section 15.52 Excluded Liabilities
	 	 	78	 
	Section 15.53 Excluded Taxes
	 	 	78	 
	Section 15.54 Existing Inventory
	 	 	78	 
	Section 15.55 [Intentionally Omitted]
	 	 	79	 
	Section 15.56 Expense Reimbursement Order
	 	 	79	 
	Section 15.57 Expense Reimbursement
	 	 	79	 
	Section 15.58 [Intentionally Omitted]
	 	 	79	 
	Section 15.59 Final Consideration
	 	 	79	 
	Section 15.60 Final Order
	 	 	79	 
	Section 15.61 Financial Statements
	 	 	79	 
	Section 15.62 Foreign Country Tax Agreements
	 	 	79	 
	Section 15.63 GAAP
	 	 	79	 
	Section 15.64 Governmental Body
	 	 	79	 
	Section 15.65 [Intentionally Omitted]
	 	 	80	 
	Section 15.66 Hazardous Material
	 	 	80	 
	Section 15.67 Hourly Business Employees
	 	 	80	 
	Section 15.68 Hose and Tubing Business
	 	 	80	 
	Section 15.69 Indemnified Party
	 	 	80	 
	Section 15.70 Indemnifying Party
	 	 	80	 
	Section 15.71 Independent Auditors
	 	 	80	 
	Section 15.72 Initial Cash Consideration
	 	 	80	 
	Section 15.73 [Intentionally Omitted]
	 	 	80	 
	Section 15.74 Intellectual Property
	 	 	80	 
	Section 15.75 Intellectual Property Contract
	 	 	81	 

v

 

	 	 	 	 	 
	 	 	Page	 
	Section 15.76 IT Assets
	 	 	81	 
	Section 15.77 Knowledge
	 	 	81	 
	Section 15.78 Law
	 	 	81	 
	Section 15.79 Leased Real Properties
	 	 	81	 
	Section 15.80 Leave Employees
	 	 	81	 
	Section 15.81 Legal Proceeding
	 	 	81	 
	Section 15.82 Liabilities
	 	 	81	 
	Section 15.83 Licensed Intellectual Property
	 	 	82	 
	Section 15.84 Lien
	 	 	82	 
	Section 15.85 Losses
	 	 	82	 
	Section 15.86 Material Adverse Effect
	 	 	82	 
	Section 15.87 Material Business Contracts
	 	 	82	 
	Section 15.88 Michigan Sublease
	 	 	82	 
	Section 15.89 Modified GAAP
	 	 	82	 
	Section 15.90 Net Working Assets Adjustment
	 	 	82	 
	Section 15.91 Net Working Assets Target
	 	 	83	 
	Section 15.92 Net Working Assets of the Business
	 	 	83	 
	Section 15.93 NLRB Proceedings
	 	 	83	 
	Section 15.94 Nonassignable Assets
	 	 	83	 
	Section 15.95 Non-Debtor Contracts
	 	 	83	 
	Section 15.96 Non-Debtor Selling Subsidiaries
	 	 	83	 
	Section 15.97 Non-Union Business Employees
	 	 	83	 
	Section 15.98 Non-Union Transferred Employees
	 	 	83	 
	Section 15.99 Operative Documents
	 	 	83	 
	Section 15.100 Order
	 	 	83	 
	Section 15.101 Other Marked Assets
	 	 	83	 
	Section 15.102 Owned Real Property
	 	 	84	 
	Section 15.103 Patents
	 	 	84	 
	Section 15.104 Permit
	 	 	84	 
	Section 15.105 Permitted Exceptions
	 	 	84	 
	Section 15.106 Person
	 	 	84	 
	Section 15.107 Personal Property Leases
	 	 	84	 
	Section 15.108 Petition Date
	 	 	84	 
	Section 15.109 Post-Closing Tax Period
	 	 	85	 
	Section 15.110 Pre-Closing Tax Period
	 	 	85	 
	Section 15.111 Property Taxes
	 	 	85	 
	Section 15.112 Purchased Assets
	 	 	85	 
	Section 15.113 Purchased Debtor Contracts
	 	 	85	 
	Section 15.114 Purchased Equipment
	 	 	85	 
	Section 15.115 Purchased Intellectual Property
	 	 	85	 
	Section 15.116 Purchaser
	 	 	85	 
	Section 15.117 Purchaser Approved Contract
	 	 	85	 
	Section 15.118 Purchaser Closing Documents
	 	 	85	 
	Section 15.119 Purchaser Financial Advisor
	 	 	85	 
	Section 15.120 Purchaser Indemnified Group
	 	 	86	 
	Section 15.121 Purchaser Labor Designee
	 	 	86	 

vi

 

	 	 	 	 	 
	 	 	Page	 
	Section 15.122 Purchaser Retirement Plans
	 	 	86	 
	Section 15.123 Purchaser Upper Sandusky Union Defined Contribution Plan
	 	 	86	 
	Section 15.124 Purchaser Welfare Plans
	 	 	86	 
	Section 15.125 RCRA
	 	 	86	 
	Section 15.126 Real Property Leases
	 	 	86	 
	Section 15.127 Registered Intellectual Property
	 	 	86	 
	Section 15.128 Related to the Business
	 	 	86	 
	Section 15.129 Release
	 	 	86	 
	Section 15.130 Remedial Action
	 	 	87	 
	Section 15.131 Remediation Condition
	 	 	87	 
	Section 15.132 Retention Agreements
	 	 	87	 
	Section 15.133 Review Period
	 	 	87	 
	Section 15.134 Salaried Business Employees
	 	 	87	 
	Section 15.135 Seller
	 	 	87	 
	Section 15.136 Seller Business Facilities
	 	 	87	 
	Section 15.137 Seller Closing Documents
	 	 	87	 
	Section 15.138 Seller Employee Benefit Plan
	 	 	87	 
	Section 15.139 Seller Financing
	 	 	88	 
	Section 15.140 Seller Indemnified Group
	 	 	88	 
	Section 15.141 Seller Name
	 	 	88	 
	Section 15.142 Seller Portion
	 	 	88	 
	Section 15.143 Seller Union Pension Plans
	 	 	88	 
	Section 15.144 Seller Upper Sandusky Union Defined Contribution Plan
	 	 	88	 
	Section 15.145 Seller Welfare Plans
	 	 	88	 
	Section 15.146 [Intentionally Omitted]
	 	 	88	 
	Section 15.147 Selling Subsidiaries
	 	 	88	 
	Section 15.148 SLP I Real Property Leases
	 	 	88	 
	Section 15.149 Statement of Net Assets
	 	 	88	 
	Section 15.150 Straddle Period
	 	 	89	 
	Section 15.151 Subsidiary
	 	 	89	 
	Section 15.152 Surveys
	 	 	89	 
	Section 15.153 Tax or Taxes
	 	 	89	 
	Section 15.154 Tax Proceeding
	 	 	89	 
	Section 15.155 Tax Return
	 	 	90	 
	Section 15.156 Trade Secrets
	 	 	90	 
	Section 15.157 Trademarks
	 	 	90	 
	Section 15.158 Transfer Taxes
	 	 	90	 
	Section 15.159 Transferred Employees
	 	 	90	 
	Section 15.160 Transition Agreements
	 	 	90	 
	Section 15.161 Trigger Level
	 	 	90	 
	Section 15.162 [Intentionally Omitted]
	 	 	90	 
	Section 15.163 Union Business Employees
	 	 	90	 
	Section 15.164 Union Transferred Employees
	 	 	91	 
	Section 15.165 VAT
	 	 	91	 
	Section 15.166 WARN ACT
	 	 	91	 
	Section 15.167 Other Definitional and Interpretive Provisions
	 	 	91	 

vii

 

	 	 	 	 	 
	 	 	Page	 
	ARTICLE XVI MISCELLANEOUS
	 	 	91	 
	 
	 	 	 	 
	Section 16.1 Notices
	 	 	91	 
	Section 16.2 Amendment; Waiver
	 	 	92	 
	Section 16.3 Assignment
	 	 	93	 
	Section 16.4 Entire Agreement
	 	 	93	 
	Section 16.5 Fulfillment of Obligations
	 	 	93	 
	Section 16.6 Parties in Interest
	 	 	94	 
	Section 16.7 No Third-Party Rights
	 	 	94	 
	Section 16.8 Public Disclosure
	 	 	94	 
	Section 16.9 Confidentiality
	 	 	94	 
	Section 16.10 Return of Information
	 	 	95	 
	Section 16.11 Expenses
	 	 	95	 
	Section 16.12 Bulk Sales Laws
	 	 	95	 
	Section 16.13 Governing Law
	 	 	95	 
	Section 16.14 Submission to Jurisdiction; Selection of Forum
	 	 	96	 
	Section 16.15 Counterparts
	 	 	96	 
	Section 16.16 Headings
	 	 	96	 
	Section 16.17 Severability
	 	 	96	 

viii

 

EXHIBITS

	 	 	 	 	 
	Exhibit A-1
	 	—	 	Selling Subsidiaries
	Exhibit A-2
	 	—	 	Debtors
	Exhibit B
	 	—	 	Form of Bill of Sale
	Exhibit C
	 	—	 	[Reserved]
	Exhibit D
	 	—	 	Form of Michigan Sublease
	Exhibit E
	 	—	 	Form of Intellectual Property Assignment
	Exhibit F
	 	—	 	Form of Assignment and Assumption Agreement
	Exhibit I
	 	—	 	Form of Approval Order
	Exhibit J
	 	—	 	Form of Transition Agreement
	Exhibit K
	 	—	 	Form of Deposit Agreement
	Exhibit L
	 	—	 	[Reserved]
	Exhibit M
	 	—	 	Commitments

ix

 

SCHEDULES

	 	 	 
	Schedule 1.1(b)
	 	Purchased Equipment
	Schedule 1.1(e)
	 	Debtor Contracts
	Schedule 1.1(f)
	 	Non-Debtor Contracts
	Schedule 1.1(g)
	 	Purchased Intellectual Property
	Schedule 1.1(l)
	 	Purchased Claims and Causes of Action
	Schedule 1.2(d)
	 	Excluded Intellectual Property
	Schedule 1.2(f)
	 	Excluded Assets, Real Property Leases and Contracts of Debtors
	Schedule 1.2(j)
	 	Hose and Tubing Business
	Schedule 1.2(o)
	 	Excluded Notes Receivable
	Schedule 1.2(q)
	 	Excluded Claims and Causes of Action
	Schedule 1.4(a)
	 	Excluded Debt and Other Liabilities
	Schedule 2.2(a)
	 	Net Working Assets
	Schedule 2.4
	 	Allocation Schedule
	Schedule 4.3
	 	Consents and Approvals
	Schedule 4.6
	 	Financial Statements
	Schedule 4.7
	 	Tax
	Schedule 4.8(c)
	 	Other Real Estate Matters
	Schedule 4.10(a)(i)
	 	Registered Intellectual Property
	Schedule 4.10(a)(ii)
	 	Intellectual Property Contracts
	Schedule 4.10(c)
	 	Litigation, opposition, cancellation, proceeding, objection or claim
	Schedule 4.11(a)
	 	Material Business Contracts
	Schedule 4.11(c)
	 	Government Contracts
	Schedule 4.11(e)
	 	Outstanding Claims Related to Government Contracts
	Schedule 4.12(a)
	 	Business Employee Benefit Plans
	Schedule 4.12(d)
	 	Pending Audit and Investigation
	Schedule 4.12(g)
	 	Multiemployer Pension Plans
	Schedule 4.12(i)
	 	Certain Employment Agreements
	Schedule 4.12(j)
	 	Employee Welfare Benefit Plans
	Schedule 4.13(a)
	 	Business Employees
	Schedule 4.13(b)
	 	Terminations; Layoffs; Work Reductions
	Schedule 4.13(c)
	 	Employees Not Terminable at Will
	Schedule 4.13(d)
	 	Business Employees Employed outside of the United States or Mexico
	Schedule 4.13(f)
	 	Governmental Matters Related to Employees
	Schedule 4.13(g)
	 	Collective Bargaining Agreements
	Schedule 4.13(h)
	 	Certain Labor Matters
	Schedule 4.13(i)
	 	Strike, Grievances and Unfair Labor Practice
	Schedule 4.13(j)
	 	Ceased Operations
	Schedule 4.14
	 	Litigation
	Schedule 4.15
	 	Compliance with Laws
	Schedule 4.16(a)
	 	Environmental Report
	Schedule 4.17
	 	Certain Assets
	Schedule 4.19(a)
	 	Government Authorizations
	Schedule 4.21
	 	Liabilities
	Schedule 4.22(b)
	 	Material Inventories

x

 

	 	 	 
	Schedule 4.23
	 	Customers, Sale Orders and Sale Contracts; Termination
	Schedule 4.24(a)
	 	Warranties
	Schedule 4.24(b)
	 	Products Defects
	Schedule 5.3
	 	Consents and Approvals
	Schedule 6.2
	 	Certain Matters Relating to the Conduct of Business
	Schedule 6.2(j)(ii)
	 	Purchaser Labor Designee
	Schedule 6.10
	 	Transition Agreements
	Schedule 8.5
	 	Seller Consents
	Schedule 9.5
	 	Purchaser Consents
	Schedule 10.3
	 	Assumed Benefit Plans
	Schedule 10.4
	 	Non-U.S. Employee Matters
	Schedule 15.76
	 	IT Assets
	Schedule 15.77
	 	Knowledge
	Schedule 15.89
	 	Modified GAAP
	Schedule 15.102
	 	Owned Real Property
	Schedule 15.105
	 	Permitted Exceptions
	Schedule 15.126
	 	Real Property Leases
	Schedule 15.132
	 	Retention Agreements

xi

 

ASSET PURCHASE AGREEMENT

     ASSET PURCHASE AGREEMENT, dated as of May 28, 2007 (this “Agreement”), by and between Coupled
Products Acquisition LLC, a limited liability company organized under the laws of Delaware
(“Purchaser”), and Dana Corporation, a corporation organized under the laws of the Commonwealth of
Virginia (“Seller”).

RECITALS

     WHEREAS, Seller and the Subsidiaries listed on Exhibit A-1 hereto (the “Selling
Subsidiaries” and each, individually, a “Selling Subsidiary”) are, among other things, engaged
through Seller’s Fluid Products Group in the Business;

     WHEREAS, upon the terms and subject to the conditions hereinafter set forth, the parties
desire that Seller and the Selling Subsidiaries sell, assign and transfer to Purchaser, and that
Purchaser purchase and acquire from Seller and the Selling Subsidiaries, all of the right, title
and interest of Seller and its Selling Subsidiaries in and to the Purchased Assets, free and clear
of all Liabilities and Liens and that Purchaser assume the Assumed Liabilities;

     WHEREAS, Seller and certain of the Selling Subsidiaries, as identified on Exhibit A-2
attached hereto (collectively, the “Debtors”), have filed voluntary petitions initiating cases
under chapter 11 of the Bankruptcy Code in the Bankruptcy Court (each, a “Case” and together, the
“Cases”);

     WHEREAS, on March 28, 2007, the Debtors filed a motion seeking, among other things, the
establishment of bidding procedures for the Debtors’ Fluid Products Group and the approval of the
sale of the assets of the Fluid Products Group to the highest bidder or bidders for those assets;
and

     WHEREAS, on April 12, 2007, the Bankruptcy Court entered an order (the “Bidding Procedures
Order”), among other things, approving bidding procedures for the Fluid Products Group (the
“Bidding Procedures”) and a $250,000 expense reimbursement payable to Purchaser in certain
circumstances (the “Expense Reimbursement”).

     NOW, THEREFORE, in consideration of the foregoing and the respective representations,
warranties, covenants and agreements hereinafter set forth, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby
agree as follows:

ARTICLE I

THE PURCHASE AND SALE

     Section 1.1 Purchase and Sale of the Purchased Assets.

     On the terms and subject to the conditions hereof, and subject to the exclusions set forth in
Section 1.2, at the Closing, Seller shall sell, assign, transfer, convey and deliver, or
cause one

 

 

or more of the Selling Subsidiaries to sell, assign, transfer, convey and deliver to Purchaser
or a designee appointed pursuant to Section 16.3, and Purchaser shall purchase, acquire and
accept from Seller, or the applicable Selling Subsidiary or Selling Subsidiaries, all of the right,
title and interest of Seller, or the applicable Selling Subsidiary or Selling Subsidiaries, in, to
and under the following assets, properties, rights, Contracts and claims of Seller, or such Selling
Subsidiary or Selling Subsidiaries, wherever located, whether tangible or intangible, real,
personal or mixed (collectively, and excluding the Excluded Assets, the “Purchased Assets”), as
such exist on the Closing Date, free and clear of all Liabilities and Liens, other than Assumed
Liabilities and Permitted Exceptions:

     (a) the Owned Real Property and the SLP I Real Property Leases;

     (b) all machinery, equipment, furniture, vehicles, tools, tooling and other tangible
personal property Related to the Business, including, without limitation, the items set
forth on Schedule 1.1(b) (the “Purchased Equipment”);

     (c) all inventories and supplies of raw materials, works-in-process, finished goods,
spare parts, supplies, storeroom contents and other inventoried items Related to the
Business;

     (d) all trade accounts and other receivables arising out of the sale or other
disposition of goods or services by the Business;

     (e) subject to Section 6.7, all rights in, to and under all Contracts of the
Debtors Related to the Business listed on Schedule 1.1(e) (collectively, the “Debtor
Contracts” and each, individually, a “Debtor Contract”);

     (f) subject to Section 6.7, all rights in, to and under the Contracts of the
Non-Debtor Selling Subsidiaries Related to the Business listed on Schedule 1.1(f)
(collectively, the “Non-Debtor Contracts” and each, individually, a “Non-Debtor Contract”);

     (g) all Intellectual Property identified on Schedule 1.1(g), including all
rights to enforce and to past and future damages for the infringement of any such
Intellectual Property (the “Purchased Intellectual Property”);

     (h) subject to Section 10.6, all books and records (other than Tax Returns and
related work papers and items set forth in Section 1.2(h)), files, papers, disks,
manuals, keys, reports, plans, catalogs, sales and promotional materials, and all other
printed and written materials, to the extent Related to the Business, to the extent
available;

     (i) all Permits Related to the Business to the extent permitted by applicable Law to be
transferred and subject to the required consent of any third party, including any
Governmental Body;

     (j) all deferred and prepaid charges, to the extent Related to the Business, other than
those that relate to any Excluded Asset;

2

 

     (k) all rights under or pursuant to all warranties, representations and guarantees,
whether express or implied, made by suppliers, manufacturers, contractors and other third
parties, to the extent Related to the Business, other than any of the foregoing that
exclusively relate to any Excluded Asset or Excluded Liability;

     (l) all claims, causes of action, choses in action, rights of recovery, rights of set
off, and rights of recoupment, to the extent Related to the Business, including those listed
on Schedule 1.1(l);

     (m) the IT Assets; provided, however that Seller and its Subsidiaries shall not be
required to make any payment to obtain any consent from any third party in connection with
such transfer; and

     (n) to the extent provided in Section 10.3, all rights under the trusts, or
other assets held pursuant to, or set aside to fund the obligations of the Seller or its
Subsidiaries under any Assumed Benefit Plan, and any data and records (or copies thereof)
required to administer the benefits of the Transferred Employees under any Assumed Benefit
Plan.

     Section 1.2 Excluded Assets.

     Notwithstanding anything to the contrary contained in Section 1.1, the parties
expressly understand and agree that the Purchased Assets shall not include, and neither Seller nor
any of the Selling Subsidiaries is hereunder selling, assigning, transferring or conveying to
Purchaser, any right or title to or interest in, any of the following assets, properties, rights,
Contracts and claims, whether tangible or intangible, real, personal or mixed (collectively, the
“Excluded Assets”):

     (a) all cash, cash equivalents, bank deposits, investment accounts, lockboxes,
certificates of deposit, marketable securities or similar cash items, of Seller or any
Subsidiary;

     (b) with the exception of direct roll-overs as provided for in Section 10.2(a),
any assets under any Seller Employee Benefit Plan which is not an Assumed Benefit Plan,
including without limitation, any trusts, insurance arrangements or other assets held
pursuant to, or set aside to fund the obligations of Seller or its Subsidiaries under, any
such Seller Employee Benefit Plan and any data and records (or copies thereof) required to
administer the benefits of Business Employees under any such Seller Employee Benefit Plan;

     (c) any and all insurance policies, binders and claims and rights thereunder and the
proceeds thereof and all prepaid insurance premiums;

     (d) subject to Section 7.6, the Intellectual Property and those Intellectual
Property Contracts listed on Schedule 1.2(d) (the “Excluded Intellectual Property”);

     (e) all tangible personal property disposed of or consumed prior to Closing Date in the
ordinary course of business as permitted by this Agreement;

3

 

     (f) the assets, Real Property Leases and other Contracts of the Seller and Selling
Subsidiaries listed on Schedule 1.2(f), as the same may be amended by Purchaser
prior to the Closing pursuant to Section 6.7;

     (g) all Contracts of Seller or any of its Affiliates (other than the Assumed Collective
Bargaining Agreements and the Assumed Benefit Plans and except as provided in Section
10.4) with any of the Transferred Employees, any other Business Employees, or any other
current or former employee or agent of the Seller or any of its Affiliates, including the
Retention Agreements;

     (h) subject to Section 10.6, any books, records and other materials that Seller
or any of its Subsidiaries is required by Law to retain, all Tax Returns and related work
papers and, subject to Section 7.6, all “Dana” marked sales and promotional
materials and brochures;

     (i) all claims, defenses, causes of action, choses in action or claims of any kind
relating to either Excluded Assets or Excluded Liabilities;

     (j) all assets, business lines, properties, rights, Contracts and claims of Seller or
any Subsidiary not Related to the Business, wherever located, whether tangible or
intangible, real, personal or mixed, including without limitation all assets, business
lines, properties, rights, Contracts and claims of Seller or any Subsidiary related to the
business of Seller’s Hose and Tubing Group as set forth on Schedule 1.2(j) (the
“Hose and Tubing Business”);

     (k) all assets associated with facilities Related to the Business which have ceased
operations prior to the date hereof;

     (l) all refunds, credits, prepayments or deferrals of or against any Taxes;

     (m) all intercompany receivables, loans and investments between or among Seller, or its
Subsidiaries;

     (n) all Contracts of the Seller and the Selling Subsidiaries not listed or referenced
on Schedule 1.1(e) or Schedule 1.1(f).

     (o) any and all notes receivable listed on Schedule 1.2(o);

     (p) any and all avoidance or other causes of action arising under Sections 510, 544
through 550 and 553 of the Bankruptcy Code or under similar state laws (collectively, the
“Bankruptcy Avoidance Actions”); and

     (q) all claims, defenses, causes of actions, choses in action, rights of recovery,
rights of set off and rights of recoupment listed on Schedule 1.2(q).

4

 

     Section 1.3 Assumed Liabilities.

     Simultaneously with the Closing, Purchaser shall assume and be liable for, and shall pay,
perform and discharge, the following obligations and Liabilities of the Seller and the Selling
Subsidiaries, whether occurring or accruing before, on or after the Closing Date, whether known or
unknown, fixed or contingent, asserted or unasserted, and not satisfied or extinguished as of the
Closing Date (collectively, and excluding the Excluded Liabilities, the “Assumed Liabilities”):

     (a) all Liabilities relating solely to any Purchased Asset (other than the Debtor
Contracts and Non-Debtor Contracts) and arising exclusively on or after the Closing;

     (b) all Liabilities under the Debtor Contracts and the Non-Debtor Contracts arising
exclusively on or after the Closing, excluding any such Liabilities to the extent caused by
or resulting from a breach or default by Seller or any Selling Subsidiary prior to the
Closing under such Debtor Contracts or Non-Debtor Contracts;

     (c) (i) all Liabilities arising under the Assumed Collective Bargaining Agreements out
of the employment of the Union Transferred Employees prior to the Closing, subject to
Sections 1.4 and 10.1 through 10.4 and applicable Law; (ii) accrued
unpaid base wages payable by Seller or its Affiliates to the Transferred Employees for any
payroll period preceding the Closing, to the extent reflected as a liability in the
calculation of the Net Working Assets of the Business at the Closing Date (it being
understood that Seller and its Affiliates shall not also be required to indemnify Purchaser
or its Affiliates for such amounts pursuant to Section 11.2), (iii) except as set
forth in Sections 10.1 through 10.4, all Liabilities to the Transferred
Employees and their dependents and beneficiaries arising exclusively out of their employment
by the Purchaser after the Closing, including obligations for any applicable salaries, wages
and any other form of compensation accruing exclusively after the Closing Date as a result
of such employment; and (iv) Liabilities to the Union Transferred Employees for accrued but
not used vacation, personal days and floating holidays, sick pay and any other leave of the
Union Transferred Employees, whether accrued prior to or after the Closing Date, if used or
payable after the Closing Date, to the extent provided in Section 10.1(g) (it being
understood that Seller and its Affiliates shall not also be required to indemnify Purchaser
or its Affiliates for such amounts pursuant to Section 11.2);

     (d) all Liabilities with respect to benefits payable after the Closing Date under any
Assumed Benefit Plan;

     (e) all Liabilities arising on or after the Closing with respect to the Union
Transferred Employees under the Assumed Collective Bargaining Agreements, subject to
Sections 10.1 through 10.4 and without limiting any right Purchaser may have
under applicable Law;

     (f) all Liabilities of the Business (including without limitation accounts and trade
payables) reflected on the Closing Statement of Net Assets;

5

 

     (g) all Liabilities that Purchaser or any of its Subsidiaries has expressly assumed or
agreed to pay for or be responsible for pursuant to the terms of the Transition Agreements;

     (h) all Liabilities for claims made on or after the Closing Date for any return,
rebate, recall, warranty or similar claims with respect to products (or any part or
component thereof) designed, manufactured, serviced or sold by the Business and all
Liabilities incurred after the Closing Date in connection with the matter described in Item
2 of Schedule 4.24(b);

     (i) all Liabilities for claims made on or after the Closing Date for death, personal
injury, other injury to persons or property damage relating to, resulting from, caused by or
arising out of, directly or indirectly, use of or exposure to any of the products (or any
part or component thereof) designed, manufactured, serviced or sold by the Business
(including asbestos and any such Liabilities for negligence, strict liability, design or
manufacturing defect, failure to warn, or breach of express or implied warranties of
merchantability or fitness for a particular purpose or use);

     (j) except as provided in Section 11.5, all Liabilities arising under
Environmental Laws or relating to the presence, handling, use or Release of Hazardous
Materials, but only to the extent they would be imposed upon Purchaser as an owner/operator
by operation of law after the Closing Date in connection with the operation of the Business
as currently conducted at any Owned Real Property, including Liabilities relating to the
Release or threatened Release of any Hazardous Material on, at or from any Owned Real
Property arising prior to the Closing Date, but excluding any Liabilities which relate to
Excluded Assets;

     (k) Liabilities to Transferred Employees related to, resulting from, or arising out of
workers’ compensation, occupational health and safety, occupational disease, injury or
similar workplace injury to the extent provided in Section 10.1(k) below; and

     (l) all Taxes imposed on or payable with respect to the Business for which Purchaser is
responsible pursuant to Section 14.1(b).

     Section 1.4 Excluded Liabilities.

     Except as set forth in Section 1.3, Purchaser shall not assume any Liabilities of
Seller and its Selling Subsidiaries and, notwithstanding the provisions of Section 1.3, it
is expressly understood and agreed that there shall be excluded from the Liabilities being assumed
by Purchaser hereunder the following Liabilities of Seller or the Selling Subsidiaries:

     (a) the debt and other Liabilities, including any interest or other amounts in
connection therewith, listed on Schedule 1.4(a);

     (b) all Liabilities for which Seller or any of the Selling Subsidiaries is expressly
made responsible pursuant hereto or the Transition Agreements;

6

 

     (c) all Liabilities in respect of any Excluded Assets (including assets associated with
facilities Related to the Business which have ceased operations prior to the Closing Date);

     (d) all Excluded Taxes;

     (e) fees, expenses, indemnification obligations and other Liabilities owed by Seller or
its Subsidiaries to their respective advisors, including Miller Buckfire & Co., LLC, and
their respective Affiliates, on account of the acquisition advisory services provided to
Seller and its Subsidiaries by such advisors in connection with the transactions
contemplated hereby;

     (f) all intercompany payables, loans and investments between or among Seller and its
Subsidiaries;

     (g) all Chapter 11 Expenses and other fees and expenses associated with the Cases;

     (h) all Liabilities and Liens with respect to which the Purchased Assets are being sold
free and clear of under the Approval Order;

     (i) all Liabilities relating to, resulting from, caused by or arising out of
Environmental Law or common law environmental theories not specifically assumed by Purchaser
under Section 1.3(j) above, including those relating to assets, properties or
operations of the Business other than current operations at the Owned Real Property,
including Liabilities relating to use, handling or Release of Hazardous Materials or claims
of exposure to Hazardous Materials involving former assets and properties used,
manufactured, sold, leased, owned or operated by, or services performed in connection with,
the Business, or the generation and off-site disposal of Hazardous Materials by the Business
prior to the Closing Date;

     (j) all Liabilities of Seller or its Selling Subsidiaries arising out of any Legal
Proceedings described on Schedule 4.14;

     (k) all Liabilities, under any contract or Law, arising under or in connection with any
Seller Employee Benefit Plan other than Liabilities with respect to benefits payable after
the Closing Date under an Assumed Benefit Plan, including all Liabilities for any severance,
retention, notice or other payments or obligations to any Transferred Employees, and all
Liabilities arising under or with respect to any Seller Union Pension Plans;

     (l) all Liabilities arising out of: (i) any of the Non-Union Transferred Employees’
employment by the Seller or any of its Affiliates prior to the Closing Date, including all
Liabilities for any unused vacation, personal days and floating holidays, sick pay and any
other leave accrued by any of the Non-Union Transferred Employees prior to the Closing,
except as may be otherwise provided for in Section 1.3(c), Section 10.1(g)
or Section 10.4; or (ii) the employment or other engagement of any current or former

7

 

     employee or agent of the Seller or any of its Affiliates, other than the Transferred
Employees, at any time prior to, on or after the Closing 
     Date;

     (m) all Liabilities arising under any employment or other Contract of Seller or any of
its Affiliates (other than the Assumed Collective Bargaining Agreements and except as
provided in Section 1.3(c), Section 1.3(e) and Sections 10.1 through
10.4) with any of the Transferred Employees, any other Business Employees, or any other
current or former employee or agent of the Seller or any of its Affiliates, including the
Retention Agreements;

     (n) except as provided in Section 10.1(j), all Liabilities (including
Liabilities under the WARN Act) arising out of the entire or partial closure or cessation of
operations at, or reduction in workforce at, any facility, location or other site of
employment of the Seller or any of its Affiliates (whether or not relating to the Business)
at any time prior to the Closing, including the former facilities located in Mitchell,
Indiana and Andrews, Indiana;

     (o) except as expressly set forth in Section 1.3, accrued liabilities of any
kind required to be reflected on the Closing Statement of Net Assets prepared in accordance
with Modified GAAP which were not reflected thereon;

     (p) all Liabilities for claims made prior to the Closing Date, for any return, rebate,
recall, warranty or similar claims with respect to products (or any part or component
thereof) designed, manufactured, serviced or sold by the Business; and

     (q) all Liabilities for claims made prior to the Closing Date for death, personal
injury, other injury to persons or property damage relating to, resulting from, caused by or
arising out of, directly or indirectly, use of or exposure to any of the products (or any
part or component thereof) designed, manufactured, serviced or sold by the Business
(including asbestos and any such Liabilities for negligence, strict liability, design or
manufacturing defect, failure to warn, or breach of express or implied warranties of
merchantability or fitness for a particular purpose or use).

ARTICLE II

CONSIDERATION

     Section 2.1 Amount and Form of Consideration.

     The consideration to be paid by Purchaser to Seller, for its own account and for the account
of its Subsidiaries that are selling Purchased Assets, in full consideration of the Purchased
Assets shall consist of:

     (a) U.S.$1.00 in cash (the “Initial Cash Consideration”), subject to adjustment as set
forth in Sections 2.2 and 2.3 (the Initial Cash Consideration, as adjusted,
the “Final Cash Consideration”) to be paid in cash on the Closing Date; and

8

 

     (b) the assumption by Purchaser on and as of the Closing Date of the Assumed
Liabilities.

     Section 2.2 Adjustment.

     (a) “Net Working Assets of the Business” as of any date shall mean the amount
calculated by subtracting the Liabilities set forth in Schedule 2.2(a) from the
assets set forth in Schedule 2.2(a). The Net Working Assets Target (the “Net
Working Assets Target”) is U.S.$39,000,000.

     (b) Not more than 14 days after the Closing Date, Seller shall deliver to Purchaser a
certificate duly executed on behalf of Seller, dated the date of its delivery, setting forth
Seller’s good faith estimate of the Net Working Assets of the Business as of the Closing
Date (the “Estimated Closing Net Working Assets”). The amount, if any, by which the Net
Working Assets Target exceeds the Estimated Closing Net Working Assets is hereinafter
referred to as the “Estimated Adjustment Amount”. With ten days after delivery of such
certificate, Seller shall pay to Purchaser an amount equal to the Estimated Adjustment
Amount together with interest thereon at the rate of 7% per annum from the Closing Date
through the date of payment; provided, however, that, if any such payment is not made within
such ten-day period, the applicable rate of interest shall be increased by 2% per month for
the period from the day following such day through the date payment is made.

     (c) As promptly as practicable, but in any event within 60 days following the Closing,
Purchaser, at its sole cost and expense, will prepare and deliver to Seller a statement of
the net assets of the Business at the Closing Date (as such may be adjusted following
resolution of disputes in accordance with Section 2.2(d), the “Closing Statement of
Net Assets”) and a calculation of the Net Working Assets Adjustment derived from the Closing
Statement of Net Assets. The Closing Statement of Net Assets and the calculation of the Net
Working Assets Adjustment derived from the Closing Statement of Net Assets shall (i) be
prepared on a basis consistent with the preparation of the Statement of Net Assets, and (ii)
be prepared in accordance with Modified GAAP. During the determination of the Estimated
Closing Net Working Assets, the preparation of the Closing Statement of Net Assets, the
calculation of the Net Working Assets Adjustment and the period of any dispute within the
contemplation of this Section 2.2, each party shall: (i) provide the other party
and its authorized representatives with full access to all of such party’s relevant books,
records, facilities and employees to the extent reasonably necessary to determine the
Estimated Closing Net Working Assets and to prepare or review the Closing Statement of Net
Assets and the calculation of Net Working Assets Adjustment; and (ii) cooperate fully with
the other party and its authorized representatives, including by providing on a timely basis
all information to the extent necessary or useful in preparing or reviewing the Statement of
Net Assets and calculating the Net Working Assets Adjustment.

     (d) Following receipt of the Closing Statement of Net Assets and the Net Working Assets
Adjustment, Seller will be afforded a period of 30 days to review the Closing Statement of
Net Assets and the Net Working Assets Adjustment (the “Review

9

 

Period”). Seller shall be deemed to have accepted the Net Working Assets Adjustment
unless, prior to the expiration of the Review Period, Seller shall deliver to Purchaser
written notice and a detailed written explanation of those items in the Net Working Assets
Adjustment that Seller disputes, in which case the Net Working Assets Adjustment, to the
extent not affected by the disputed items, will be deemed to be accepted, and the items
identified by Seller shall be deemed to be in dispute. Within a further period of 10 days
from the end of the Review Period, the parties will attempt to resolve in good faith any
disputed items. Failing such resolution, either party may refer the unresolved disputed
items for final binding resolution to a nationally recognized certified public accounting
firm mutually acceptable to Seller and Purchaser (the “Independent Auditors”). The
unresolved disputed items (if any) will be deemed to be as determined by the Independent
Auditors in accordance with Modified GAAP, consistently applied, within 30 days of such
reference. One-half of the cost of the determination by the Independent Auditors shall be
paid by Purchaser and one-half by Seller. The decision of the Independent Auditors shall
not be subject to appeal or challenge for any reason (other than gross negligence, fraud or
willful misconduct). The definitive Closing Net Working Assets and Net Working Assets
Adjustment shall be the Closing Net Working Assets and Net Working Assets Adjustment, as
applicable, agreed to (or deemed to be agreed to) by Purchaser and Seller in accordance with
the terms of this Section 2.2(d) or the definitive Closing Net Working Assets or Net
Working Assets Adjustment, as applicable, resulting from the determination made by the
Independent Auditors in accordance with this Section 2.2(d) (in addition to those
items theretofore agreed to by Seller and Purchaser).

     (e) “Closing Net Working Assets” is the Net Working Assets of the Business as
calculated from the Closing Statement of Net Assets, as finally determined in accordance
with Section 2.2(d).

     (f) “Net Working Assets Adjustment” shall be determined as follows: (i) if the Closing
Net Working Assets is equal to or greater than the Estimated Closing Net Working Assets,
then the Net Working Assets Adjustment will be a positive amount equal to the amount of such
excess; and (ii) if the Closing Net Working Assets is less than the Estimated Closing Net
Working Assets, then the Net Working Assets Adjustment will be a negative amount equal to
the amount of such difference.

     (g) Other than those provisions set forth in this Section 2.2 relating to the
resolution of certain matters by the Independent Auditors, there is no agreement among the
parties to submit disputes under this Agreement to arbitration.

     Section 2.3 Payment of Net Working Assets Adjustment.

     (a) If the Net Working Assets Adjustment is a positive amount, Purchaser will pay
Seller the amount of the Net Working Assets Adjustment together with interest thereon at the
rate of 7% per annum from the Closing Date through the date of payment, such payment to be
made within ten days after the final determination of the Net

10

 

Working Assets Adjustment; provided, however, that, if payment is not made within such
ten-day period, the applicable rate of interest rate shall be increased by 2% per month for
the period from the day following such day through the date such payment is made.

     (b) If the Net Working Assets Adjustment is a negative amount, then Seller will pay to
Purchaser the amount of the Net Working Assets Adjustment, together with interest thereon at
the rate of 7% per annum from the Closing Date through the date of payment, such payment to
be made within ten days after the final determination of the Net Working Assets Adjustment;
provided, however, that, if any such payment is not made within such ten-day period, the
applicable rate of interest shall be increased by 2% per month for the period from the day
following such day through the date payment is made.

     Section 2.4 Allocation of Consideration.

     Within 45 days following the final determination of the Net Working Assets Adjustment,
Purchaser shall deliver to Seller a proposed Schedule (the “Allocation Schedule”) allocating the
purchase price (including, for purposes of this Section 2.4, the Assumed Liabilities and
any other consideration paid to Seller and the Selling Subsidiaries) among the Purchased Assets.
The Allocation Schedule shall be reasonable and shall be prepared in accordance with Section 1060
of the Code and the regulations thereunder. If Purchaser and Seller are unable to reach an
agreement with respect to the Allocation Schedule within 30 calendar days after delivery thereof,
the allocation of any disputed item or items shall be resolved within the next 30 calendar days by
an independent accounting firm or valuation expert that is mutually acceptable to both parties and
whose fees shall be borne equally by Purchaser and Seller. Such determination by the accounting
firm or valuation expert shall be binding on the parties without further adjustment. Except as
otherwise required pursuant to a “determination” under Section 1313(a) of the Code (or any
comparable provision of state, local or foreign Law), Purchaser and Seller agree to act in
accordance with the allocations determined hereunder for all Tax purposes and that neither of them
will (or will permit its Affiliates to) take any position inconsistent therewith in any Tax Returns
or similar filings (including IRS Form 8594 or any similar form required to be filed under state,
local or foreign Law), any refund claim, litigation, or otherwise. Purchaser and Seller each agree
to provide the other party with any additional information reasonably required to complete IRS Form
8594 (or any similar form required to be filed under state, local or foreign Law) and with
completed copies of such forms.

     Section 2.5 Deposit.

     Within three (3) Business Days after the date hereof, in accordance with the Deposit Agreement
(the form of which is attached as Exhibit K hereto, the “Deposit Agreement”), Purchaser
will wire transfer in immediately available funds to The Bank of New York, as deposit agent (the
“Deposit Agent”), an amount equal to U.S. $750,000 (such amount, together with the interest accrued
thereon, the “Deposit Amount”), to be held in an interest-bearing account by the Deposit Agent and
to be distributed in accordance with the terms of the Deposit Agreement. At the Closing, the
Deposit Agent will wire transfer the Deposit Amount to an account designated by Purchaser in
accordance with the Deposit Agreement.

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ARTICLE III

THE CLOSING

     Section 3.1 Closing Date.

     Except as hereinafter provided, the closing of the transactions contemplated hereunder (the
“Closing”) shall take place at the offices of Sidley Austin LLP, 1 S. Dearborn, Chicago, Illinois
at 10:00 a.m. (local time) on July 31, 2007, or on such later date as may be mutually agreed upon
by Purchaser and Seller, but in no event later than the fifth calendar day after all of the
conditions precedent set forth in Article VIII and Article IX have been either
satisfied or waived (such date and time being referred to herein as the “Closing Date”). The
Closing shall be deemed to occur as of 11:59 p.m. (Eastern Standard Time) on the Closing Date.

     Section 3.2 Deliveries by Seller to Purchaser.

     At the Closing, Seller shall deliver, or shall cause to be delivered, to Purchaser the
following:

     (a) one or more bills of sale, substantially in the form of Exhibit B, or local
transfer agreements as may be necessary or desirable under applicable Law, or comparable
instruments of transfer transferring to Purchaser all of the Purchased Assets, duly executed
by Seller or, as applicable, a Selling Subsidiary thereof;

     (b) special warranty deeds, or comparable instruments of transfer and assignment,
customary in the states where the Owned Real Properties are located with respect to the
Owned Real Properties owned by Seller or any of its Subsidiaries, and otherwise in form
mutually acceptable to Purchaser and Seller, duly executed by Seller or, as applicable, a
Subsidiary thereof, together with all recording cover sheets, disclosure forms, certificates
and affidavits as may be required by applicable law in order to record each of the
applicable deeds in the state where it is recorded;

     (c) subject to receipt of all applicable lessor consents, a sublease for a portion of
the Rochester Hills, Michigan facility substantially in the form of Exhibit D hereto
(the “Michigan Sublease”), the size, location and configuration of which shall be mutually
agreed upon by Purchaser and Seller prior to Closing, duly executed by Seller or, as
applicable, a Selling Subsidiary, and an assignment of the SLP I Real Property Leases in
form mutually acceptable to Seller and Purchaser (the “Mexico Assignment”), duly executed by
Seller or, as applicable, a Selling Subsidiary;

     (d) duly executed instruments of assignment or transfer of the Purchased Intellectual
Property, substantially in the form of Exhibit E or local assignment agreements as
may be necessary or desirable under applicable Law;

     (e) the certificate referred to in Section 8.6 signed by a duly authorized
officer of Seller;

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     (f) the Transition Agreements, duly executed by Seller;

     (g) a certificate of non-foreign status pursuant to Treasury Regulations Section
1.1445-2(b)(2) from Seller and each domestic Subsidiary of Seller that transfers
Purchased Assets located in the United States pursuant to this Agreement;

     (h) a duly executed assignment and assumption agreement or other comparable instrument
of assignment and assumption, substantially in the form of Exhibit F, evidencing
assumption of the Assumed Liabilities and all other instruments or documents as shall be
necessary in the reasonable judgment of Purchaser to evidence the assignment by Seller and
its Subsidiaries of the Purchased Assets and the assumption by Purchaser or its Subsidiaries
of the Assumed Liabilities, subject to Sections 6.5(a) and 10.5(b);

     (i) a copy of the Approval Order; and

     (j) an Alta 1992 form owner’s policy of title insurance for each parcel of Owned Real
Property in an amount equal to the applicable assessed value for real estate tax purposes
and otherwise in form and substance satisfactory to Purchaser issued by First American Title
Insurance Company in conformity with each Commitment, subject only to Permitted Exceptions.

     Section 3.3 Deliveries by Purchaser to Seller.

     At the Closing, Purchaser shall deliver to Seller the following:

     (a) the Initial Cash Consideration;

     (b) a duly executed assignment and assumption agreement or other comparable instrument
of assignment and assumption, substantially in the form of Exhibit F, evidencing
assumption of the Assumed Liabilities and all other instruments or documents as shall be
necessary in the reasonable judgment of Seller to evidence the assignment by Seller of the
Purchased Assets and the assumption by Purchaser or its Subsidiaries of the Assumed
Liabilities, subject to Sections 6.4(a) and 10.5(b);

     (c) the sublease and assignment referred to in Section 3.2(c), duly executed by
Purchaser or its Subsidiaries;

     (d) the assignments referred to in Section 3.2(d), duly executed by Purchaser
or Subsidiary of Purchaser;

     (e) the certificate referred to in Section 9.6 signed by a duly authorized
officer of Purchaser;

     (f) the Transition Agreements, duly executed by Purchaser; and

     (g) the assumption agreement referred to in Section 10.3.

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     Section 3.4 Proceedings at Closing.

     All acts and proceedings to be taken and all documents to be executed and delivered by the
parties at the Closing shall be deemed to have been taken and executed simultaneously, and, except
as permitted hereunder, no acts or proceedings shall be deemed taken nor any documents executed or
delivered until all have been taken, executed and delivered.

ARTICLE IV

REPRESENTATIONS AND WARRANTIES OF SELLER

     As an inducement to Purchaser to enter into this Agreement and to consummate the transactions
contemplated hereby, Seller hereby represents and warrants to Purchaser as follows:

     Section 4.1 Organization and Qualification.

     Each of Seller and the Selling Subsidiaries is an entity duly organized, validly existing and,
if applicable, in good standing under the laws of the jurisdiction of its organization and has the
requisite corporate power and authority to own or lease and operate its properties and to carry on,
in all material respects, its business as currently conducted. Each of Seller and the Selling
Subsidiaries is duly licensed or qualified to conduct its business as a foreign corporation and, if
applicable, is in good standing under the laws of each jurisdiction in which the conduct of its
business or the ownership of its properties requires such license or qualification.

     Section 4.2 Corporate Authorization.

     Upon entry of the Approval Order and subject to it becoming a Final Order, each of Seller and
the Selling Subsidiaries will have full corporate power and authority to enter into, execute and
deliver (or cause to be entered into, executed and delivered) this Agreement and each other
agreement, document, instrument or certificate to be executed at the Closing by it in connection
with the consummation of the transactions contemplated hereby (all such other agreements,
documents, instruments and certificates required to be executed by Seller or any of the Selling
Subsidiaries being hereinafter referred to, collectively, as the “Seller Closing Documents”), and
to perform (or cause to be performed) Seller’s obligations hereunder and thereunder. The
execution, delivery and performance by Seller of this Agreement has been duly authorized by all
requisite corporate action on the part of Seller and the execution, delivery and performance by
Seller or its Subsidiaries of each of the Seller Closing Documents will be duly authorized by all
requisite corporate action on the part of Seller or such Subsidiaries, as applicable, prior to
Closing.

     Section 4.3 Consents and Approvals.

     Except as set forth in Schedule 4.3, and after giving effect to the entry of the
Approval Order and subject to it becoming a Final Order, no consent, waiver, approval, Order,
Permit or authorization of, or declaration or filing with, or notification to, any Person or
Governmental Body is required on the part of Seller or the Selling Subsidiaries in connection with
the execution and delivery of this Agreement or the Seller Closing Documents, the consummation of
the

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transactions contemplated hereby and thereby or the compliance by Seller and its Subsidiaries
with any of the provisions hereof or thereof.

     Section 4.4 Non-Contravention.

     Upon entry of the Approval Order and subject to it becoming a Final Order, none of the
execution and delivery by Seller of this Agreement and the Seller Closing Documents, the
consummation of the transactions contemplated hereby or thereby or compliance by Seller and its
Subsidiaries with any of the provisions hereof or thereof will, subject to the receipt of the
consents identified on Schedule 4.3, (i) result in the breach of any provision of the
certificate or articles of incorporation, bylaws or similar organizational documents of Seller;
(ii) violate, result in the breach or termination of, or constitute (with or without notice or
lapse of time or both) a default or give rise to any right of consent, cancellation, termination,
vesting or acceleration or right to increase the obligations or otherwise modify the terms under
any Material Business Contract; or (iii) constitute a violation of any Law applicable to Seller or
any of its Affiliates, except in the case of clause (ii) and (iii), for minor violations none of
which are material individually or in the aggregate.

     Section 4.5 Binding Effect.

     Upon entry of the Approval Order and subject to it becoming a Final Order, this Agreement
constitutes and, when executed and delivered at the Closing, each of the Seller Closing Documents
will constitute, a valid and legally binding obligation of Seller or such of its Subsidiaries as is
party thereto, enforceable in accordance with its terms, subject to bankruptcy, insolvency,
reorganization, moratorium and similar laws of general applicability relating to or affecting
creditors’ rights and to general equity principles (whether in equity or at law).

     Section 4.6 Financial Statements.

     Schedule 4.6 contains true and correct copies of the unaudited statement of net assets
(the “Statement of Net Assets”) of the Business, as of December 31, 2006, and the unaudited
statement of operating results of the Business for the year ended December 31, 2006 (collectively,
the “Financial Statements”). Each of the Financial Statements has been prepared in accordance with
Modified GAAP. The Financial Statements were prepared on the basis of the books and records of the
Business (in each case, as of the date of such Financial Statements) and present fairly, in all
material respects, the financial condition of the Business as of the dates thereof and the results
of its operations for each of the periods then ended in conformity with Modified GAAP.

     Section 4.7 Taxes.

     Except as set forth on Schedule 4.7:

     (a) all Tax Returns required to be filed by or with respect to the Business have been
timely filed (taking into account extensions) and all such Tax Returns are complete and
accurate and disclose all taxes required to be paid in respect of such Tax Returns;

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     (b) all Taxes shown to be due on such Tax Returns (or payable pursuant to any
assessments with respect to such Tax Returns) have been or will be timely paid, except for
any payments by the Debtors which have been stayed by the filing of the Cases under Section
362 of the Bankruptcy Code;

     (c) there is no action, suit, investigation, audit, claim or assessment pending with
respect to Taxes of the Business, except for claims being pursued against the Debtors in the
Cases, and to Seller’s Knowledge, no basis for any such claim exists;

     (d) none of Seller or any of the Selling Subsidiaries is currently the beneficiary of
any extension of time within which to file any Tax Return, except for routine extensions of
the time to file income Tax Returns;

     (e) none of Seller or any of the Selling Subsidiaries has waived or been requested to
waive any statute of limitations in respect of Taxes associated with the Business, which
waiver is currently in effect;

     (f) all monies required to be withheld by Seller or any of its Subsidiaries (including
from employees of the Business for income Taxes and social security and other payroll Taxes)
have been collected or withheld, and either paid to the respective taxing authorities, set
aside in accounts for such purpose, or accrued, reserved against and entered upon the books
of the Business;

     (g) none of the Purchased Assets is properly treated as owned by persons other than
Seller or the Selling Subsidiaries for income Tax purposes;

     (h) none of the Purchased Assets is “tax-exempt use property” within the meaning of
Section 168(h) of the Code; and

     (i) no transferor of a United States real property interest contemplated by this
Agreement is a “foreign person” for purposes of Section 1445 of the Code.

     Section 4.8 Real Property.

     Except for the filing of the Cases, after giving effect to the entry of the Approval Order and
subject to it becoming a Final Order:

     (a) Schedule 15.102 contains a legal description and address of each parcel of
Owned Real Property . To the Knowledge of Seller, there are no options held by Seller or
the Selling Subsidiary to acquire any real property for use with respect to the Business.
Seller, or a Selling Subsidiary, has good and marketable title to each of the Owned Real
Properties, free and clear of all Liens except Permitted Exceptions. Each of the Owned Real
Properties (i) has legal and actual access to publicly dedicated streets whether adjacent or
connected by valid easements thereto, subject to Permitted Exceptions, and (ii) has public
utilities, including water, sewer, gas, electric, telephone and drainage facilities that are
adequate to conduct the Business thereon as is currently being conducted. To the Knowledge
of Seller, complete and correct copies of any engineering

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plans and specifications, reports or studies of the physical condition of the Owned
Real Property, title opinions, surveys and appraisals in Seller’s or the Selling
Subsidiaries’ possession or any policies of title insurance currently in force and in the
possession of Seller or the Selling Subsidiaries with respect to each parcel of Owned Real
Property have heretofore been delivered by Seller to Purchaser.

     (b) Schedule 15.126 contains a brief description of each Real Property Lease.
To the Knowledge of Seller, there are no leases pursuant to which Seller, or its applicable
Selling Subsidiary, is lessor of any of the Owned Real Property. To the Knowledge of
Seller, Seller, or the applicable Selling Subsidiary, has valid leasehold estates in each of
the Leased Real Properties.

     (c) Except for the Permitted Exceptions, the Michigan Sublease and as otherwise set
forth on Schedule 4.8(c), none of the Owned Real Properties, nor to the Knowledge of
Seller, the Leased Real Properties, is subject to any lease, sublease, license or other
agreement granting to any other Person any right to the use or occupancy of such Owned Real
Property or Leased Real Property or any part thereof. To the Knowledge of Seller, complete
and correct copies of any engineering plans and specifications, reports or studies of the
physical condition of the Leased Real Property, title opinions, surveys and appraisals in
Seller’s or the Selling Subsidiary’s possession or any policies of title insurance currently
in force and in the possession of Seller, or the Selling Subsidiary, with respect to each
parcel of Leased Real Property have heretofore been delivered by Seller to Purchaser.

     (d) To the Knowledge of Seller, Seller has furnished to Purchaser complete and accurate
copies of the Real Property Leases.

     (e) Each Real Property Lease is in full force and effect and is valid and enforceable
against Seller or its applicable Subsidiary and the lessor in accordance with its terms
(subject to bankruptcy, insolvency, reorganization, moratorium and similar laws of general
applicability relating to or affecting creditors’ rights and to general equity principles,
whether in equity or at law), and there is no current default which cannot be cured under
Section 365 of the Bankruptcy Code.

     (f) To the Knowledge of Seller, (i) Seller or its Subsidiaries have all Permits of any
Governmental Body necessary for the current use and operation by Seller or its Subsidiaries
of each Owned Real Property and Leased Real Property, and (ii) no default or violation by
Seller or any of its Subsidiaries has occurred in the due observance of any such Permit.

     (g) There are no actions or proceedings pending, or to the Knowledge of Seller,
threatened or contemplated against or relating to the ownership, use, possession or
operation of the Owned Real Property, including, without limitation, actions for
condemnation of all or any part thereof or other taking by any Governmental Body.

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     (h) To the Knowledge of Seller, the present improvements located on and the present use
of the Real Property do not violate any building code, subdivision, entitlement, zoning, or
similar land use law, regulation, ordinance, permit or order.

     (i) To the Knowledge of Seller, there are no plans or proposals for changes in road
grade, access or other municipal improvements which would affect the Real Property or result
in any special tax or assessment against it.

     Section 4.9 Tangible Personal Property.

     Except as would not reasonably be expected to have a Material Adverse Effect, after giving
effect to the entry of the Approval Order and subject to it becoming a Final Order:

     (a) Each lease of personal property (i) included in the Purchased Assets requiring
lease payments equal to or exceeding U.S. $60,000 per annum, or (ii) the loss of which would
have a Material Adverse Effect (collectively, the “Personal Property Leases”) is in full
force and effect and is valid and enforceable in accordance with its terms (subject to
bankruptcy, insolvency, reorganization, moratorium and similar laws of general applicability
relating to or affecting creditors’ rights and to general equity principles, whether in
equity or at law), and there is no default under any Personal Property Lease either by
Seller or its Subsidiaries or, to the Knowledge of Seller, by any other party thereto, and
no event has occurred that, with the lapse of time or the giving of notice or both, would
constitute a default by Seller or its Subsidiaries thereunder which cannot be cured under
Section 365 of the Bankruptcy Code.

     (b) Seller or one of its Subsidiaries has good and valid title to each item of owned
Purchased Equipment, free and clear of any and all Liens other than Permitted Exceptions or
Liens under the Seller Financing.

     Section 4.10 Intellectual Property.

     (a) Schedule 4.10(a)(i) sets forth a true and complete list of all Registered
Intellectual Property owned by Seller or the Selling Subsidiaries that is exclusively
related to the Business, indicating for each item of such Registered Intellectual Property,
the registration or application number and the applicable filing jurisdiction. Schedule
4.10(a)(ii) sets forth a true and complete list of all Licensed Intellectual Property
(other than the Excluded Intellectual Property). Seller and its Selling Subsidiaries
exclusively own (beneficially, and of record where applicable) all Purchased Intellectual
Property, free and clear of all Liens other than Permitted Exceptions and Liens under the
Seller Financing. To the Knowledge of Seller, the Purchased Intellectual Property is valid,
subsisting and enforceable, and is not subject to any outstanding order, judgment, decree or
agreement adversely affecting Seller’s or its Selling Subsidiaries’ use thereof or its
rights thereto. To the Knowledge of Seller, no Person is infringing, violating or has
misappropriated any Purchased Intellectual Property.

     (b) To the Knowledge of Seller, each Intellectual Property Contract included in the
Purchased Assets is legal, valid, binding and enforceable against the other party, and

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is in full force and effect, except as may be limited by applicable bankruptcy,
insolvency, reorganization, moratorium and similar laws of general applicability relating
to or affecting creditors’ rights and to general equity principles (whether in equity or at
law). No claim has been threatened or asserted that Seller or any other Person has breached
any Intellectual Property Contract. There exists no event, condition or occurrence that,
with the giving of notice or lapse of time, or both, would constitute a material breach or
default by Seller or, to the Knowledge of Seller, any other Person, under any Intellectual
Property Contract.

     (c) To the Knowledge of Seller, there is no litigation, opposition, cancellation,
proceeding, or claim pending, asserted or threatened in writing against Seller or its
Selling Subsidiaries, or any other Person, concerning the ownership, validity,
registerability, enforceability, infringement, use, or licensed right to use any Purchased
Intellectual Property or rights licensed to Seller or its Selling Subsidiaries in such
Intellectual Property Contract.

     (d) To the Knowledge of Seller, the conduct of the Business by Seller and its Selling
Subsidiaries, including their ownership, manufacture, use, operation and sale of Purchased
Assets, does not violate as of the date of this Agreement and has not during the five years
immediately preceding the date of this Agreement violated any Intellectual Property rights
of any Person.

     (e) [Intentionally omitted.]

     (f) Seller and its Subsidiaries have sufficient rights to assert or use all
Intellectual Property Related to the Business as conducted immediately prior to Closing.
For the avoidance of doubt, following the Closing, the conduct of the Business as conducted
immediately prior to Closing will not infringe, misappropriate or violate any Intellectual
Property rights: (i) acquired by Orhan Holding, A.S., or its Affiliates pursuant to the
Agreement to Purchase Assets and Stock by and between Orhan Holding, A.S. and Seller; or
(ii) of Seller and its Subsidiaries.

     (g) The IT Assets operate and perform in all material respects in accordance with its
documentation and functional specifications and otherwise as required by Seller in
connection with the Business. Seller has not incorporated into the IT Assets any “time
bombs,” “Trojan horses,” “back doors,” “trap doors,” “worms,” viruses, bugs, faults or other
devices or effects that (i) enable or assist any person to access without authorization the
IT Assets or (ii) otherwise significantly and adversely affect the functionality of the IT
Assets, except as disclosed in its documentation. To the Knowledge of Seller, none of the
IT Assets is subject to or distributed under any license that (A) would require the
distribution of source code with the asset or require source code to be made available when
such is distributed to any third party or (B) would restrict or impair in any way
Purchaser’s ability to license IT Assets pursuant to terms of Purchaser’s choosing.

     (h) Seller has taken all commercially reasonable measures to protect the secrecy,
confidentiality and value of all Trade Secrets that are owned, used or held for use by
Seller and its Selling Subsidiaries and exclusively related to the Business, and to the

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Knowledge of Seller, such Trade Secrets have not been used by, disclosed to or
discovered by any person except pursuant to valid and appropriate non-disclosure and/or
license agreements and those agreements have not been breached. To the Knowledge of Seller,
as of the date of this Agreement, none of the current employees of Seller and its
Subsidiaries has any Patents issued or applications pending for any device, process, design
or invention of any kind now used or needed by Seller or its Selling Subsidiaries in the
operation of the Business, which Patents or applications have not been assigned to Seller or
its Selling Subsidiaries. To the Knowledge of Seller, the performance by the employees of
Seller and its Selling Subsidiaries of their employment activities in respect of the
development of the IT Assets does not violate any third party’s Intellectual Property rights
or such employee’s contractual obligations to any third person.

     Section 4.11 Contracts.

     (a) Schedule 4.11(a) sets forth a true, complete and correct list, as of the
date hereof, of each of the following Debtor Contracts and Non-Debtor Contracts
(collectively, the “Material Business Contracts”):

     (i) any Debtor Contract or Non-Debtor Contract not made in the ordinary course
of business involving annual payments in excess of $10,000;

     (ii) any Debtor Contract or Non-Debtor Contract or binding commitment for, or
setting forth any of the terms or conditions relating to, the employment or
termination of employment of any officer or non-temporary employee of Seller or the
Selling Subsidiaries whose basic annual compensation (excluding bonus or commission)
is in excess of U.S. $50,000;

     (iii) any franchise, distributorship or sales agency agreement of Seller or any
of the Selling Subsidiaries that involves annual payments in excess of U.S.
$200,000;

     (iv) any Debtor Contract or Non-Debtor Contract for the purchase, or the sale,
supply or provision, of materials, supplies, services, merchandise or equipment not
capable of being fully performed or not terminable without penalty within a period
of 60 calendar days and involving annual payments in excess of U.S. $150,000;

     (v) any agreement for the purchase or sale of any assets of Seller or the
Selling Subsidiaries, to the extent Related to the Business, other than in the
ordinary course of business involving an amount in excess of U.S. $10,000;

     (vi) any Debtor Contract or Non-Debtor Contract limiting the freedom of Seller
or the Selling Subsidiaries to engage in any line of business or to compete with any
Person;

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     (vii) any commitment of Seller or the Selling Subsidiaries to make any capital
expenditure or to purchase a capital asset Related to the Business in excess of U.S.
$50,000;

     (viii) any Debtor Contract or Non-Debtor Contract for the creation or formation
of a joint venture, partnership or limited liability company;

     (ix) any Debtor Contract or Non-Debtor Contract relating to any indebtedness
for borrowed money, guaranty, surety, line of credit or other loan or financing
arrangement involving an amount in excess of U.S. $10,000;

     (x) any Debtor Contract or Non-Debtor Contract that is a collective bargaining
agreement or other contract with any labor organization relating or applying to the
Business or any Business Employee, including the Assumed Collective Bargaining
Agreements;

     (xi) any Debtor Contract or Non-Debtor Contract (other than a collective
bargaining agreement with a labor organization) setting forth terms and conditions
of employment, or separation from employment, of any Business Employee or any other
current or former employee employed in connection with the Business;

     (xii) any Debtor Contract or Non-Debtor Contract with any individual Person or
Persons for the performance of any services by any such Person relating to the
Business involving annual payments in excess of $10,000; or

     (xiii) any Debtor Contract or Non-Debtor Contract under which Seller or Selling
Subsidiary is obligated or is a party to any option, right of first refusal or other
contractual right to sell, lease or dispose of the Purchased Assets or any portion
thereof or interest therein.

     True and correct copies of the Material Business Contracts have been delivered to or made
available to Purchaser.

     (b) To the Knowledge of Seller, (x) each Material Business Contract is in full force
and effect and constitutes as of the date hereof the valid and legally binding obligation of
each party thereto, enforceable against Seller and the other parties thereto in accordance
with its terms, except as may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium and similar laws of general applicability relating to or
affecting creditors’ rights and to general equity principles (whether in equity or at law)
and (y) there are no defaults under the Material Business Contracts which cannot be cured
under Section 365 of the Bankruptcy Code. Seller has made available to Purchaser true and
correct copies of the Material Business Contracts.

     (c) Schedule 4.11(c) constitutes a complete list of all of the Contracts
Related to the Business (including subcontracts at any tier to the extent known by Seller)
entered into or being performed by the Selling Subsidiaries with the United States
Government,

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the government of any state or any political subdivision thereof, and any division,
agency or instrumentality of the United States or of any state (hereinafter, the “Government
Contracts.”).

     (d) To the Knowledge of Seller, there are no facts with respect to the Government
Contracts that could give rise to liability under the False Claims Act or any other civil or
criminal statute.

     (e) To the Knowledge of Seller, except as described in Schedule 4.11(e), there
are no outstanding claims relating to the Government Contracts that have been brought by the
United States Government, the government of any state or any political subdivision thereof,
or any division, agency or instrumentality of the United States or of any state, or by any
prime contractor, any higher-tier subcontractor or any third party which would reasonably be
expected to have a Material Adverse Effect.

     Section 4.12 Employee Benefits.

     (a) Schedule 4.12(a) contains a complete and accurate list of each Business
Employee Benefit Plan. Seller has made available to Purchaser, to the extent applicable to
any such Business Employee Benefit Plan, (i) a true and complete copy of the plan document
(including all amendments and modifications thereto) and all related trust agreements,
insurance contacts and other funding arrangements, (ii) the most recently filed United
States Department of Labor Form 5500 series and all Schedules thereto, (iii) the current
summary plan description and all summary material modifications thereto as applicable, and
(iv) to the extent applicable, the most recent determination letter with respect to each
Business Employee Benefit Plan.

     (b) Each Assumed Benefit Plan has been maintained, operated and administered in
compliance with its terms and the applicable provisions of ERISA, the Code and other
applicable Law.

     (c) Each Assumed Benefit Plan that is intended to meet the qualification requirements
of Section 401(a) of the Code has received a favorable determination letter from the U.S.
Internal Revenue Service.

     (d) Except as set forth in Schedule 4.12(d), there is no audit or investigation
pending (other than routine qualification or registration determination filings) with
respect to any Assumed Benefit Plan before the U.S. Internal Revenue Service, the U.S.
Department of Labor or any Governmental Authority and no such audit or investigation has
been threatened in writing.

     (e) Other than claims by common law employees for benefits received in the ordinary
course under an Assumed Benefit Plan, neither Seller nor any of its Affiliates has received
written notice of any pending or threatened claim under any Assumed Benefit Plan.

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     (f) With respect to any Business Employee Benefit Plan, all contributions, premiums,
expenses and other payments required to be made by Seller or otherwise attributable to
periods, services performed or compensation paid on or before the Closing Date have been
made or will be timely made by Seller. For each Seller Employee Benefit Plan subject to the
minimum funding requirements of ERISA and Section 412 of the Code, all contributions
required to satisfy ERISA’s minimum funding requirements have been made and no liens have
been imposed pursuant to Section 412(m) of the Code.

     (g) No Seller Employee Benefit Plan is a “multiemployer pension plan” as defined in
Section 3(37) of ERISA, and neither Seller nor any of its Affiliates is obligated to make
contributions to a multiemployer pension plan on behalf of any Business Employee, except as
described in Schedule 4.12(g). Neither Seller nor any of its Affiliates has
incurred a complete withdrawal as this term is defined in Section 4203 of ERISA or a partial
withdrawal as defined in ERISA Section 4205 from any such multiemployer pension plan. To
the Knowledge of Seller, no such multiemployer pension plan is not in reorganization status
under ERISA Section 4241.

     (h) No Seller Employee Benefit Plan that is a defined benefit pension plan subject to
Title IV of ERISA has been terminated during the six year period ending on the Closing Date,
and neither Seller nor any of its Affiliates has incurred liability under Section 4062 of
ERISA.

     (i) Neither Seller nor any of its Affiliates is a party to or bound by any employment,
compensation, commission, bonus, benefit, retention, severance, separation, confidentiality,
nonsolicitation, noncompetition or other Contract with or for the benefit of any current or
former Business Employee, with the exception of the Retention Agreements or as described in
Schedule 4.12(i).

     (j) Except as listed in Schedule 4.12(j), no Business Employee Benefit Plan
that is an “employee welfare benefit plan” as defined in Section 3(i) of ERISA provides for
benefits to or on behalf of any retired or other former Business Employee or dependent or
beneficiary thereof except as required by Section 601 et. seq. of ERISA.

     Section 4.13 Employee and Labor Matters.

     (a) Schedule 4.13(a) contains a true and complete list of all Business
Employees as of the date hereof and as of the Closing Date, and accurately and completely
sets forth for each such Business Employee the following: (i) name, (ii) title or position
(including whether full or part time), (iii) name of employer, (iv) location of employment
(e.g., plant, city and state), (v) leave status (including date leave commenced, nature of
leave (e.g., medical, military) and anticipated return date), (vi) whether the employee is
represented by a labor organization; and (vii) if not represented by a labor union, whether
the employee is paid on a salaried or hourly basis.

     (b) Schedule 4.13(b) contains a true and complete list of each current or
former Business Employee, and every other current or former employee of the Seller or any of
its Affiliates who is or was employed at any of the Seller Business Facilities, in each

23

 

case: (x) whose employment has terminated (voluntarily or involuntarily) or who has
been laid off within 6 months prior to the Closing Date, including the date of such
termination or layoff and an indication of the reason therefore (e.g., voluntary
resignation, retirement, for cause, reduction in force); (y) whose hours of work have been
materially reduced within 6 months prior to the Closing Date, including the date of any such
reduction; or (z) who is otherwise on layoff as of the Closing Date and the date of such
layoff, and accurately and completely sets forth for each such Person the following: (i)
name, (ii) name of employer, (iii) location of employment (e.g., plant, city and state), and
(iv) whether the employee is or was represented by a labor organization.

     (c) Except as provided in Schedule 4.13(c), each Business Employee employed in
the United States is employed at will and may terminate his or her employment with Seller or
its Affiliates or be terminated from such employment at any time for any or no reason with
or without prior notice, except for any rights, of Business Employees in the State of
Michigan under Michigan common law to enforce handbook representations, if any, and except,
in the case of Union Business Employees, as otherwise provided in the Assumed Collective
Bargaining Agreements.

     (d) Except as provided in Schedule 4.13(d), none of the Business Employees is
employed outside of the United States or Mexico.

     (e) All Persons engaged in connection with the Business and classified or treated by
the Seller or any of its Affiliates as independent contractors or otherwise as non-employees
satisfy and have satisfied all applicable Laws, in each case in all material respects, to be
so classified or treated, and the Seller and each of its Affiliates have fully and
accurately reported their compensation of any kind on IRS Forms 1099 or as otherwise
required by Law.

     (f) Except as provided in Schedule 4.13(f), neither the Seller nor any of its
Affiliates: (i) sells or otherwise provides, or since May 31, 2006 has sold or otherwise
provided, any Governmental Body with any product or service relating to the Business; or
(ii) is or since May 31, 2006 has been a government contractor for purposes of any Law with
respect to the terms and conditions of employment of any Business Employee at any Seller
Business Facility or any other current or former employees employed in connection with the
Business at any Seller Business Facility. The Seller is and has been subject to affirmative
action obligations under Laws, including Executive Order 11246, with respect to the Seller
Business Facilities and Business Employees employed in connection with the Business at the
Seller Business Facilities under affirmative action compliance programs applicable to the
Seller’s entire U.S. workforce.

     (g) Set forth on Schedule 4.13(g) is a true and correct list, as of the date
hereof, and as of the Closing Date: (i) of each labor or collective bargaining agreement or
other agreement or understanding with any labor organization, to which Seller or any of its
Subsidiaries is a party or by which any of them is bound with respect to the Business or any
of the Business Employees, including the Assumed Collective Bargaining Agreements (and the
term of the Columbia City Assumed Collective Bargaining Agreement has been validly extended
until February 12, 2008, with no other changes to

24

 

the provisions thereof, by agreement of the parties thereto, subject to a ratification
vote by the relevant bargaining unit employees to be obtained prior to the Closing Date),
and (ii) of each arbitration award to which Seller or any of its Subsidiaries is a party or
by which any of them is bound with respect to the Business or any of the Transferred
Employees, including pursuant to any of the Assumed Collective Bargaining Agreements.

     (h) Except as set forth in Schedule 4.13(h): (i) no labor organization
represents, or has made a demand against Seller or any of its Subsidiaries for recognition
with respect to representation of, any Business Employees or group of Business Employees;
(ii) there are no, and have not been any, representation or decertification proceedings or
written petitions seeking a representation or decertification proceeding involving any
Business Employees pending against Seller or any of its Subsidiaries or, to the Knowledge of
Seller, threatened in writing to be brought or filed against Seller or any of its
Subsidiaries with the United States National Labor Relations Board or any other Governmental
Body; (iii) neither Seller nor any of its Subsidiaries is or has been negotiating, or has
been asked to negotiate, any collective bargaining agreement or other agreement or
understanding with any labor organization with respect to any of the Business Employees,
other than requests by the UAW to negotiate an extension of, or a successor agreement to,
one or more of the Assumed Collective Bargaining Agreements following the Scheduled
expiration thereof and other than requests by such UAW entities for “effects bargaining” in
connection with the transactions contemplated by this Agreement; and (iv) to the Knowledge
of Seller, there is currently no, and there has not within the past twenty-four (24) months
been any, organizing activity involving any Business Employees pending or threatened by any
labor organization, any of the Business Employees or any other Person acting on behalf of or
for the benefit of any of them.

     (i) Except as set forth in Schedule 4.13(i) and solely with respect to the
Business, there are not as of the date hereof and as of the Closing Date, and there have not
been at any time during the one (1) year before the Closing Date, any (i) strikes, work
stoppages, slowdowns or lockouts, interruptions of work, or picketing, (ii) grievances,
arbitrations or other material labor disputes, or (iii) unfair labor practice charges, or
complaints, in each case pending or threatened by or on behalf of any Business Employees,
any labor organization or any other Person involving the Business or any Business Employees.

     (j) Except as set forth in Schedule 4.13(j), neither Seller nor any of its
Affiliates has entirely or partially closed or ceased operations at, or reduced the
workforce at, any facility, location or other site of employment of the Seller or any of its
Affiliates relating to the Business within one (1) year prior to the Closing Date.

     (k) Seller and its Affiliates have complied in all material respects with all Laws
which relate to employment of the Business Employees, including all Laws which relate to
wages, hours, discrimination in employment, equal employment opportunity, immigration,
leaves, reasonable accommodations, occupational safety and health, confidentiality, labor
relations and collective bargaining, facility closures and layoffs

25

 

(including the WARN Act), and are not liable for any material arrears of wages or any
taxes or penalties for failure to comply with any of the foregoing.

     Section 4.14 Litigation.

     (a) As of the date hereof and except for the filing of the Cases, there is no material
Legal Proceeding pending or, to the Knowledge of Seller, threatened in writing against
Seller or any of the Selling Subsidiaries that challenges, or questions the validity of,
this Agreement or any Seller Closing Document before any Governmental Body or any action
taken or to be taken by Seller and its Subsidiaries in connection with, or which seeks to
enjoin or obtain monetary damages in respect of, the consummation of the transactions
contemplated hereby or thereby. Except as set forth in Schedule 4.14 hereof,
neither Seller nor any of its Subsidiaries has been charged with, nor to the Knowledge of
Seller, is Seller or any of its Subsidiaries under investigation with respect to, any
violation of any provision of any Law with respect to the Purchased Assets that is
applicable and material to the operation of the Business.

     (b) Except for the filing of the Cases, Schedule 4.14 sets forth a true and
correct list, as of the date thereof, of all material pending or, to the Knowledge of
Seller, threatened Legal Proceedings Related to the Business or related to the Purchased
Assets.

     Section 4.15 Compliance with Laws.

     Except with respect to Environmental matters which are addressed in Section 4.16,
employment matters which are addressed in Sections 4.12 and 4.13, and Real Property
matters which are addressed in Section 4.8, with respect to the Business conducted by it
and the Selling Subsidiaries, Seller and each Selling Subsidiary is in material compliance with all
applicable Laws and all decrees, orders, judgments and Permits of or from Governmental Bodies
except as set forth in Schedule 4.15.

     Section 4.16 Environmental Matters.

     (a) Seller has provided Purchaser copies of all:

     (i) written notices of a currently pending charge, action, hearing,
investigation, claim, demand or notice having been filed or commenced against Seller
or any of its Subsidiaries alleging any failure of the Business to comply with, or
asserting liability under any Environmental Law concerning (i) the release or
threatened release of hazardous material, (ii) pollution or (iii) protection of the
Environment;

     (ii) all Permits held by Seller or its Subsidiaries in connection with the
Business and related to any Environmental Law; and

     (iii) all environmental reports, which are listed on Schedule 4.16(a).

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     (b) With respect to the Business:

     (i) to the Seller’s Knowledge, none of the Owned Real Property or the Leased
Real Property is or has been operated in material violation of any Environmental
Law;

     (ii) (A) Neither Seller nor any of its Subsidiaries has, with respect to the
Business, transported or disposed, or to Seller’s Knowledge, allowed or arranged for
any third parties to transport or dispose of any Hazardous Material or other waste
to or at a site which, pursuant to CERCLA or any applicable state law or national or
international law equivalent, is undergoing cleanup or has been placed on the
National Priorities List, or its state, national or international equivalent; (B)
Seller and its Subsidiaries possess all environmental Permits necessary for the
operation of the Business as currently conducted and are in compliance with the
terms and conditions of such Permits and with applicable Environmental Laws; (C)
Seller and its Subsidiaries have not submitted and were not required to submit any
notice pursuant to Section 103(c) of CERCLA (or any similar notice under equivalent
or similar international law or national law requirements) and have not received a
request for information under Section 104(e) of CERCLA (or under equivalent or
similar international law or national law) and there have been no spills or releases
of Hazardous Materials at any Owned Real Property or Leased Real Property that could
give rise to any material liability on the part of the Business under any
Environmental Law; and (D) Seller has not undertaken, or been ordered, directed or
enjoined to undertake any response or remedial actions or clean-up actions of any
kind by any Governmental Body at any Owned Real Property or Leased Real Property.

     (iii) (A) None of the products manufactured by the Business contain, or at any
time have contained, any asbestos or asbestos-containing material; (B) no
asbestos-containing material was used by Seller or its Subsidiaries or, to Seller’s
Knowledge, by any predecessor at any Owned or Leased Real Property, in connection
with the production of any product manufactured by the Business; (C) there have been
no claims, demands or proceedings alleging exposure to asbestos or
asbestos-containing material either in any product sold by the Business or at any
Owned Real Property or Leased Real Property relating to the operations of the
Business; and (D) to Seller’s Knowledge, any asbestos or asbestos-containing
material present in any Owned Real Property or in any Leased Real Property is in
good condition (is not in friable form) and is and has been properly managed by
Seller under applicable Environmental Laws.

     Section 4.17 Ownership of Necessary Assets and Rights.

     Except for the (a) Excluded Assets, (b) the Intellectual Property covered by Section
7.6, (c) those assets and services to be provided pursuant to the terms of the Transition
Agreements, and (d) those assets and services listed on Schedule 4.17, the Purchased Assets
on the Closing Date are in all material respects sufficient for the conduct of the Business
immediately following the Closing in substantially the same manner as currently conducted.

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     Section 4.18 Brokers.

     Except for Miller Buckfire & Co., LLC, (a) no Person has acted directly or indirectly as a
broker, finder or financial advisor for Seller or any of its Subsidiaries in connection with the
negotiations relating to the transactions contemplated hereby and no (b) Person is entitled to any
fee or commission or like payment in respect thereof from Purchaser based in any way on any
agreement, arrangement or understanding made by or on behalf of Seller or any of its Subsidiaries.
Seller is solely responsible for the fees and expenses of Miller Buckfire & Co., LLC, payable in
connection with the transactions contemplated hereby.

     Section 4.19 Permits.

     (a) Schedule 4.19(a) to this Agreement lists all material Permits related to
the Purchased Assets or to the current use of the Purchased Assets that Seller or its
Subsidiaries has obtained from any Governmental Body. Except as set forth in Schedule
4.19(a) and with respect to Environmental Matters which are addressed solely in
Section 4.16, to the Knowledge of Seller, (i) all such material Permits are validly
existing authorizations, (ii) Seller and the Selling Subsidiaries have all Permits necessary
for the operation of the Business and the Purchased Assets as currently operated, (iii)
there is no default or violation, in each case, in any material respect, by Seller or any of
the Selling Subsidiaries under any such Permit, and (iv) there is no action pending, nor
threatened, before any Governmental Body to revoke, refuse to renew, suspend or modify any
of the Permits, or any action which is reasonably likely to result in the denial of any
pending applications of Seller. Except as set forth in Schedule 4.19(a), Seller has
not received notice from any Governmental Authority to the effect that any additional
Permits are required for such operation.

     (b) To the Knowledge of Seller, neither Seller nor the Selling Subsidiaries, nor any
director, officer, employee, agent, representative, or consultant acting on behalf of Seller
or the Selling Subsidiaries has, with respect to the Business, since May 31, 2006 (i)
exported, re-exported or transferred, via any means, any technology, software or hardware
subject to the U.S. Export Administration Regulations (“EAR”), via a direct export or via
provision to a non-U.S. person (including any Business Employees located in the U.S. or
abroad); or exported, re-exported, transferred via any means, or temporarily imported a
defense article, including technical data, software and hardware, or provided a defense
service to a non-U.S. person, subject to International Traffic in Arms Regulations (“ITAR”),
via a direct export or via provision to a non-U.S. person (including any Business Employees
located in the U.S. or abroad) except as pursuant to a valid license or other authorization,
for such importation, exportation, or re-exportation, or for such provision of services, or
pursuant to a valid exception or exemption from the requirement for such a license,
agreement or re-export authorization, or (ii) violated or is in violation of any provision
of the U.S. Export Administration Act, the EAR, the Arms Export Control Act, or the ITAR.

     Section 4.20 [Intentionally omitted].

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     Section 4.21 No Undisclosed Liabilities.

     Except as set forth in Schedule 4.21, Seller is not subject, with respect to the
Business, to any Liability of the type required to be disclosed on the Statement of Net Assets
which is not shown in the Statement of Net Assets, other than (i) Liabilities of the same nature as
those set forth in the Statement of Net Assets and incurred in the ordinary course of the Business
after December 31, 2006 or (ii) other Liabilities that, in the case of clause (i) and clause (ii),
are not reasonably expected to have a Material Adverse Effect, either individually or in the
aggregate.

     Section 4.22 Accounts Receivable; Inventories.

     (a) To the Knowledge of Seller, all accounts receivable of Seller and the Selling
Subsidiaries with respect to the Business have arisen from bona fide transactions by Seller
and the Selling Subsidiaries in the ordinary course of the Business.

     (b) To the Knowledge of Seller, the inventories of Seller and the Selling Subsidiaries
with respect to the Business (including raw materials, supplies, work-in-process, finished
goods and other materials) (i) are in good, merchantable and useable condition and (ii) are,
in the case of finished goods, of a quality and quantity saleable in the ordinary course of
business and, in the case of all other inventories, are of a quality and quantity useable in
the ordinary course of business, subject in each case to applicable reserves. Schedule
4.22(b) sets forth a list of locations other than the Owned Real Property and Leased
Real Property where material inventories of the Business were located as of May 1, 2007.

     Section 4.23 Customers and Suppliers.

     Schedule 4.23 sets forth (i) a list of names of the ten largest customers and the ten
largest suppliers (measured by dollar volume of purchases or sales in each case) of Seller in
respect of the Business during the year ended December 31, 2006.

     Section 4.24 Warranties; Product Defects.

     (a) Schedule 4.24(a) sets forth a summary of the warranty expense incurred by
Seller and its Subsidiaries with respect to the Business during each of its last three
fiscal years and from January 1, 2007 through April 30, 2007. To the Knowledge of Seller,
no material liability exists for any return claim, warranty claim or other obligation to
provide parts and service on, or to repair or replace, any products sold or delivered by
Seller and its Subsidiaries in connection with the Business at any time on or prior to the
Closing Date beyond the amounts reserved for warranty expense reflected in the Statement of
Net Assets.

     (b) Schedule 4.24(b) sets forth a list of all (i) Products which have been
recalled, withdrawn or suspended (other than (x) Products discontinued or suspended in the
ordinary course of business or by reason of business decisions made without regard to (1)
concerns as to design or other inherent defect or risk to the safety of the users thereof or
(2) concerns of any Governmental Body and (y) isolated instances with respect to

29

 

particular product units which are not representative of an entire product category)
since January 1, 2004, and (ii) proceedings pending against Seller and its Subsidiaries at
any time since January 1, 2004 (whether such proceeding have since been completed or remain
pending) seeking the recall, withdrawal, suspension or seizure of any Products or seeking to
enjoin Seller from engaging in activities pertaining to any Products.

     Section 4.25 Disclaimers of Seller.

     EXCEPT AS EXPRESSLY SET FORTH HEREIN OR IN ANY TRANSITION AGREEMENT, (A) SELLER EXCLUDES AND
DISCLAIMS ALL WARRANTIES, INCLUDING IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A
PARTICULAR PURPOSE, WITH RESPECT TO THE BUSINESS OR THE PURCHASED ASSETS, (B) SELLER MAKES NO
REPRESENTATION OR WARRANTY WITH RESPECT TO THE CONFIDENTIAL INFORMATION MEMORANDUM, FINANCIAL
SUPPLEMENT, PRESENTATIONS, REPORTS, OR ANY FINANCIAL FORECASTS OR PROJECTIONS OR OTHER INFORMATION
FURNISHED BY SELLER OR ITS OFFICERS, DIRECTORS, EMPLOYEES, AGENTS OR REPRESENTATIVES, (C) SELLER
UNDERTAKES NO LIABILITY FOR ANY DAMAGE, LOSS, EXPENSE OR CLAIM OR OTHER MATTER RELATING TO ANY
CAUSE WHATSOEVER ARISING UNDER OR PURSUANT HERETO (WHETHER SUCH CAUSE BE BASED IN CONTRACT,
NEGLIGENCE, STRICT LIABILITY, OTHER TORT OR OTHERWISE) AND IN NO EVENT SHALL SELLER BE LIABLE FOR
SPECIAL, INCIDENTAL, CONSEQUENTIAL, EXEMPLARY, INDIRECT OR PUNITIVE DAMAGES RESULTING FROM ANY SUCH
CAUSE; (D) SELLER SHALL NOT BE LIABLE FOR, AND PURCHASER ASSUMES LIABILITY FOR, ALL PERSONAL INJURY
AND PROPERTY DAMAGE CONNECTED WITH ITS INVESTIGATION AND EXAMINATION OF THE PURCHASED ASSETS, THE
HANDLING, TRANSPORTATION, POSSESSION, PROCESSING, FURTHER MANUFACTURE OR OTHER USE OR RESALE OF ANY
OF THE PURCHASED ASSETS AFTER THE CLOSING DATE, WHETHER SUCH PURCHASED ASSETS ARE USED OR RESOLD
ALONE OR IN COMBINATION WITH OTHER ASSETS OR MATERIALS, AND (E) PURCHASER ACKNOWLEDGES THAT EXCEPT
AS PROVIDED IN THIS AGREEMENT, THE PURCHASED ASSETS ARE BEING SOLD IN THEIR PRESENT STATE AND
CONDITION, “AS IS, WHERE IS,” WITH ALL FAULTS, AND PURCHASER IS PURCHASING AND ACQUIRING SUCH
PURCHASED ASSETS ON THAT BASIS PURSUANT TO PURCHASER’S OWN INVESTIGATION AND EXAMINATION AFTER
HAVING BEEN PROVIDED WITH AN ADEQUATE OPPORTUNITY AND ACCESS TO SUCH PURCHASED ASSETS TO COMPLETE
SUCH INVESTIGATION OR EXAMINATION.

     Section 4.26 No Material Misstatements.

     To Seller’s Knowledge, this Agreement does not, and, when executed and delivered at the
Closing, the other Operative Documents to which such Seller is a party and the documents or
instruments listed under Section 3.2 relating to such Seller will not, contain any material
misstatement of fact, or omit to state any material fact necessary to make statements therein, in
the light of the circumstances under which they were made, not misleading.

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     Section 4.27 No Other Representations or Warranties.

     Except for the representations and warranties contained in this Article IV, none of
Seller, any Affiliate of Seller or any other Person makes any representations or warranties, and
Seller hereby disclaims any other representations or warranties, whether made by Seller or any
Affiliate of Seller, or any of their respective officers, directors, employees, agents or
representatives, with respect to the execution and delivery of this Agreement or any Seller Closing
Document, the transactions contemplated hereby or the Business, notwithstanding the delivery or
disclosure to Purchaser or its representatives of any documentation or other information with
respect to any one or more of the foregoing and notwithstanding any statements or agreements made
by Seller in the letter agreement between Seller and Plante & Moran, PLLC dated May 18, 2007.

ARTICLE V

REPRESENTATIONS AND WARRANTIES OF PURCHASER

     As an inducement to Seller to enter into this Agreement and to consummate the transactions
contemplated hereby, Purchaser hereby represents and warrants to Seller that, except as set forth
in the Schedules hereto:

     Section 5.1 Organization and Qualification.

     Purchaser is a limited liability company duly organized, validly existing and in good standing
under the laws of the State of Delaware and has the requisite corporate power and authority to own
or lease and operate its properties and to carry on, in all material respects, its business as
currently conducted.

     Section 5.2 Corporate Authorization.

     Purchaser has full limited liability company power and authority to enter into, execute and
deliver this Agreement and each other agreement, document, instrument or certificate to be executed
at the Closing by Purchaser in connection with the consummation of the transactions contemplated
hereby and thereby (all of such agreements, documents, instruments and certificates required to be
executed by Purchaser and any of its Subsidiaries being hereinafter referred to, collectively, as
the “Purchaser Closing Documents”), and to perform its obligations hereunder and thereunder. The
execution, delivery and performance by Purchaser of this Agreement and by Purchaser of each
Purchaser Closing Document has been duly authorized by all requisite limited liability company
action on the part of Purchaser.

     Section 5.3 Consents and Approvals.

     Except as set forth in Schedule 5.3, upon entry of the Approval Order and subject to
it becoming a Final Order, no consent, waiver, approval, Order, Permit or authorization of, or
declaration or filing with, or notification to, any Person or Governmental Body is required on the
part of Purchaser in connection with the execution and delivery of this Agreement or Purchaser
Closing Documents, the consummation of the transactions contemplated hereby and thereby or the
compliance by Purchaser with any of the provisions hereof or thereof.

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     Section 5.4 Non-Contravention.

     Upon entry of the Approval Order and subject to it becoming a Final Order, none of the
execution and delivery by Purchaser of this Agreement and Purchaser Closing Documents, the
consummation of the transactions contemplated hereby or thereby or the compliance by Purchaser with
any of the provisions hereof or thereof will (a) result in the breach of any provision of the
certificate of incorporation, limited liability company agreement or similar organizational
documents of Purchaser or (b) violate, result in the breach of, or constitute a default under any
Order by which Purchaser or any of their properties or assets is bound or subject.

     Section 5.5 Binding Effect.

     This Agreement constitutes and, when executed and delivered at the Closing, each of the
Purchaser Closing Documents will constitute, a valid and legally binding obligation of Purchaser
enforceable in accordance with its terms, subject to bankruptcy, insolvency, reorganization,
moratorium and similar laws of general applicability relating to or affecting creditors’ rights and
to general equity principles (whether in equity or at law).

     Section 5.6 Litigation.

     As of the date hereof, there is no Legal Proceeding pending or, to the knowledge of Purchaser,
threatened in writing, against Purchaser that challenges, or questions the validity of, this
Agreement, the Purchaser Closing Documents or any action taken or to be taken by Purchaser in
connection with, or that seeks to enjoin or obtain monetary damages in respect of, the consummation
of the transactions contemplated hereby or thereby.

     Section 5.7 Financing.

     Purchaser has, and will have on the Closing Date, and knows of no circumstance or condition
that would reasonably be expected to prevent the availability at the Closing of, sufficient funds
to consummate the transactions contemplated by this Agreement. Purchaser has not incurred any
commitment, restriction or Liability of any kind, absolute or contingent, present or future, which
would impair or adversely affect its available resources and capabilities (financial or otherwise)
to perform its obligations hereunder and under the Transition Agreements.

     Section 5.8 Brokers.

     Except for Bay Tree Advisors, (“Purchaser Financial Advisor”), (a) no Person has acted
directly or indirectly as a broker, finder or financial advisor for Purchaser or any of its
Affiliates in connection with the negotiations relating to or the transactions contemplated hereby
and (b) no Person is entitled to any fee or commission or like payment in respect thereof from
Seller or any of its Subsidiaries based in any way on agreements, arrangements or understandings
made by or on behalf of Purchaser or any of its Affiliates. Purchaser is solely responsible for
all fees and expenses of Purchaser Financial Advisor payable in connection with the transactions
contemplated hereby.

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     Section 5.9 No Inducement or Reliance; Independent Assessment.

     (a) With respect to the Purchased Assets, the Business or any other rights or
obligations to be transferred hereunder or under the Transition Agreements or pursuant
hereto or thereto, Purchaser has not been induced by and has not relied upon any
representations, warranties or statements, whether express or implied, made by Seller, any
Affiliate of Seller, or any agent, employee, attorney or other representative of Seller
representing or purporting to represent Seller that are not expressly set forth herein or in
the Transition Agreements (including the Schedules and Exhibits hereto and thereto), whether
or not any such representations, warranties or statements were made in writing or orally,
and none of Seller, any Affiliate of Seller, or any agent, employee, attorney, other
representative of Seller or other Person shall have or be subject to any liability to
Purchaser or any other Person resulting from the distribution to Purchaser, or Purchaser’s
use of, any such information, including the Confidential Information Memorandum prepared by
Miller Buckfire & Co., LLC relating to the Business or, except as expressly provided in this
Agreement any information, documents or material made available in any “data rooms” or
management presentations or in any other form in expectation of the transactions
contemplated hereby.

     (b) Purchaser acknowledges that it has made its own assessment of the present condition
and the future prospects of the Business and is sufficiently experienced to make an informed
judgment with respect thereto. Purchaser acknowledges that, except as explicitly set forth
herein, neither Seller nor any of its Affiliates has made any warranty, express or implied,
as to the prospects of the Business or its profitability for Purchaser, or with respect to
any forecasts, projections or business plans prepared by or on behalf of Seller and
delivered to Purchaser in connection with Purchaser’s review of the Business and the
negotiation and the execution of this Agreement.

     (c) Purchaser is not purchasing the Purchased Assets for resale and has not entered
into negotiations to, and has no plan or intent to, sell any of the Purchased Assets outside
the ordinary course of business.

ARTICLE VI

COVENANTS OF SELLER

     From and after the date hereof and until the Closing (except with respect to Section
6.6, Section 6.9 and Section 6.12, which shall survive the Closing in
accordance with their respective terms), Seller hereby covenants and agrees that:

     Section 6.1 Access/Survey.

     Seller shall, and shall cause its Subsidiaries to, afford to representatives of Purchaser
reasonable access to management of the Business to answer Purchaser’s questions concerning the
business operations and affairs of the Business, corporate records, books of accounts, Debtor
Contracts, Non-Debtor Contracts, financial statements and all other documents (excluding
confidential portions of personnel and medical records) Related to the Business reasonably

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requested by Purchaser and shall permit Purchaser and its representatives reasonable access to
the Owned Real Property and the Leased Real Property (but excluding the Excluded Assets and
Excluded Liabilities and subject to any limitations that are reasonably required to preserve any
applicable attorney-client privilege or third-party confidentiality obligation); provided, however,
that in each case, such access shall be given at reasonable times and upon reasonable prior notice
and without undue interruption to Seller’s business or personnel as approved by Seller. All
requests for access shall be made to such representatives of Seller as Seller shall designate, who
shall be solely responsible for coordinating all such requests and access thereunder. In the event
that Purchaser desires to order Surveys, Purchaser and its representatives shall have access to the
Real Property to the extent necessary to complete the Surveys and Purchaser agrees to indemnify
Seller and the Selling Subsidiaries for any injuries, damages or liens resulting from Purchaser or
its representatives presence on the Real Property.

     Section 6.2 Conduct of Business.

     Unless otherwise ordered by the Bankruptcy Court sua sponte or on motion by a third party, and
provided that no provision of this Section 6.2 shall require a Debtor to make any payment
to any of its creditors with respect to any amount owed to such creditors on the Petition Date or
which would otherwise violate the Bankruptcy Code, until the Closing Date, Seller shall use
commercially reasonable efforts to, and shall use its commercially reasonable efforts to cause its
Subsidiaries to, solely with respect to the operation of the Business (unless Purchaser shall
otherwise consent in writing (which consent shall not be unreasonably withheld, conditioned or
delayed) or except as otherwise contemplated hereby or by any Transition Agreement or as disclosed
on Schedule 6.2), to the extent permitted by applicable Law:

     (a) (i) operate in the ordinary course in all material respects consistent with past
practice, (ii) preserve its present material business operations, organization and goodwill,
and (iii) manage the level of its inventories, supplies, accounts receivable and accounts
payable in a manner reasonably consistent in all material respects with past practice;

     (b) not incur any indebtedness in connection with the Business, other than (i)
indebtedness incurred in the ordinary course of business and (ii) indebtedness under the
Seller Financing;

     (c) not acquire or dispose of any material property or assets used in the Business or
create or permit to exist any Lien (other than Permitted Exceptions or Liens securing
obligations under the Seller Financing) on any such property or assets except in the
ordinary course of business or with respect to property or assets not in excess of U.S.
$50,000 in the aggregate;

     (d) make, or enter into commitments for, capital expenditures in excess of U.S. $50,000
individually or U.S. $100,000 in the aggregate;

     (e) not enter into any Contracts in connection with the Business, except for Contracts
made in the ordinary course of business;

     (f) not amend or terminate any Material Business Contract;

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     (g) not amend or terminate any other Debtor Contract or Non-Debtor Contract except for
amendments or terminations made in the ordinary course of business;

     (h) not engage in any transactions with, or enter into any material Contracts with, any
Affiliate of Seller in connection with the Business, except for any such transactions or
Contracts in the ordinary course of business on terms no less favorable than would be
obtained in an arms’ length third party transaction;

     (i) not enter into, adopt, amend, increase or decrease payments or benefits under, or
terminate any Seller Employee Benefit Plan or any Contract relating to the compensation,
severance or other terms and conditions of employment of any employee employed in the
Business, except (i) in the ordinary course of business, or (ii) to the extent required by
Law or any existing Contracts, or Seller Employee Benefit Plans or (iii) to the extent
previously announced by Seller to its employees including Business Employees;

     (j) enter into, amend or negotiate any collective bargaining agreement or other labor
agreement or understanding with any labor organization, including any amendment to any of
the Assumed Collective Bargaining Agreements, except:

     (i) any settlement in the ordinary course of business, on an expressly
non-precedent-setting basis, of a grievance filed by a UAW union pursuant to an
Assumed Collective Bargaining Agreement involving (A) the discharge or other
discipline of a Union Business Employee where such settlement reinstates the
grievant or mitigates other discipline, in each case without backpay or other
monetary relief, or (B) the application of a work rule where such settlement
suspends such work rule without backpay or other monetary relief and without
prejudice either to the right of the Purchaser or its Affiliates to reinstate such
work rule after the Closing or the right of the UAW union to grieve any such
reinstatement;

     (ii) any other settlement in the ordinary course of business of a grievance
filed by a UAW union pursuant to an Assumed Collective Bargaining Agreement to which
a representative of Purchaser or its Affiliates (the “Purchaser Labor Designee”)
designated in Schedule 6.2(j)(ii) consents in writing (in his or her
discretion) after the provision by Seller to such Purchaser Labor Designee of
reasonable notice and reasonable information concerning such grievance and the
proposed settlement, provided that such Purchaser Labor Designee shall be deemed to
have given such written consent if such Purchaser Labor Designee does not grant or
deny such consent in writing within seven (7) Business Days after his or her receipt
of such notice and information from Seller;

     (iii) any other negotiations or agreements with the UAW entities representing
the Union Business Employees as required by the applicable Assumed Collective
Bargaining Agreement and/or Law, provided that neither the Purchaser nor any of its
Affiliates shall, or shall be deemed to, assume, be bound by or bear any of the
costs or obligations of any such negotiation, amendment or

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other agreement or understanding unless Purchaser expressly agrees in a
separate written document to assume such amendment or other agreement or
understanding, and

     (iv) any extension of the term of the Columbia City Assumed Collective
Bargaining Agreement, upon the same terms and conditions of such Assumed Collective
Bargaining Agreement and with no other amendments thereto, to a new expiration date
that is no later than August 12, 2008;

     (k) not accelerate the rate of collection of accounts receivable or delay the rate of
payment of accounts payable, in each case, other than in the ordinary course of business;
and

     (l) not agree to take any action or actions prohibited by any of the foregoing clauses
(a) through (k).

Seller agrees to use commercially reasonable efforts to oppose any Third Party motion that would
require Seller or any of its Subsidiaries to take any action or actions that would otherwise be
prohibited under this Section 6.2 without the written consent of Purchaser.

     Section 6.3 Bankruptcy Actions.

     (a) Should the purchase offer made by this Agreement constitute the highest and best
offer for the Purchased Assets, the Debtors, as soon as practicable after making such
determination in accordance with the Bidding Procedures Order, shall submit to the
Bankruptcy Court an order approving this Agreement and the transactions contemplated hereby
(including the sale of the Purchased Assets free and clear of all Liens and Liabilities
except Assumed Liabilities and Permitted Exceptions), which order shall be substantially in
the form of Exhibit I hereto, together with such changes as may be approved by
Seller and Purchaser (the “Approval Order”).

     (b) Seller shall use its reasonable best efforts to have the Bankruptcy Court enter the
Approval Order by June 22, 2007. Seller shall use its reasonable best efforts to cause the
Approval Order, as applicable, to become a Final Order as soon as possible after its entry.
Furthermore, Seller shall use its reasonable best efforts to obtain any other approvals or
consents from the Bankruptcy Court that may be reasonably necessary to consummate the
transactions contemplated in this Agreement.

     (c) Seller shall promptly provide Purchaser with drafts of all documents, motions,
orders, filings, or pleadings that Seller or any Affiliate of Seller proposes to file with
the Bankruptcy Court or any other court or tribunal which relate in any manner, directly or
indirectly, to (i) this Agreement or the transactions contemplated thereby; or (ii) entry of
the Approval Order, and, if practicable, will provide the Purchaser with a reasonable
opportunity to review such documents in advance of their service and filing. To the extent
practicable, Seller shall consult and cooperate with Purchaser, and consider in good faith
the views of Purchaser, with respect to all such filings.

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     (d) Seller shall comply with all notice requirements of the Bankruptcy Code, the
Federal Rules of Bankruptcy Procedure and any Order of the Bankruptcy Court in connection
with the hearing on the Approval Order.

     Section 6.4 Regulatory Approvals.

     (a) Except with respect to approval by the Bankruptcy Court, within five (5) Business
Days after the date hereof, Seller shall, using its commercially reasonable efforts, begin
taking all steps reasonably necessary to make all required registrations and filings with,
and obtain all necessary actions or non-actions, waivers, consents and approvals from, all
applicable Governmental Bodies in connection with the transactions contemplated by this
Agreement.

     (b) Seller shall keep Purchaser reasonably apprised of the status of matters relating
to any of the matters referred to in Section 6.4(a), including promptly furnishing
Purchaser with copies of notices or other communications received by Seller or by any of its
Subsidiaries from any Governmental Body with respect to the transactions contemplated
hereby. In connection with the foregoing, Seller shall promptly furnish to Purchaser such
necessary information and reasonable assistance as Purchaser may request and shall promptly
provide counsel for Purchaser with copies of all filings made by Seller, and all
correspondence between Seller (and its advisors) with any Governmental Body and any other
information supplied by Seller and its Affiliates to a Governmental Body in connection
therewith and the transactions contemplated hereby; provided, however, that Seller may, as
it deems advisable and necessary, reasonably designate any competitively sensitive material
provided to Purchaser as “outside counsel only,” and materials may be redacted (i) to remove
references concerning the valuation of the Business and (ii) as necessary to comply with
contractual arrangements. Materials designated as for “outside counsel only” and the
information contained therein shall be given only to the outside legal counsel of Purchaser
and will not be disclosed by such outside counsel to employees, officers or directors of
Purchaser unless express permission is obtained in advance from Seller or its legal counsel.
Seller shall, subject to applicable Law, permit counsel for Purchaser reasonable
opportunity to review in advance, and consider in good faith the views of Seller in
connection with, any proposed written communication to any Governmental Body in connection
with the matters referred to in this Section 6.4. To the extent practicable, Seller
agrees to consult with the Purchaser prior to participating or permitting its Affiliates to
participate, in any substantive meeting or discussion, either in person or by telephone,
with any Governmental Body in connection herewith and, to the extent not prohibited by such
Governmental Body, agrees to give Purchaser the opportunity to attend and participate.

     (c) As soon as reasonably practicable after the date hereof, the Seller shall, together
with Purchaser jointly prepare and file with the Committee on Foreign Investment in the
United States (“CFIUS”) a joint voluntary notice under Section 721 of the Defense Production
Act of 1950, as amended by Section 5021 of the Omnibus Trade and Competitiveness Act of
1988, 50 U.S.C. App. sec. 2170 (the “Exon-Florio Amendment”) with respect to the transaction
contemplated by this Agreement. Seller

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shall provide CFIUS with any additional or supplemental information requested from
Seller by CFIUS or its member agencies during the Exon-Florio Amendment review process.
Seller shall, in cooperation with Purchaser, take all commercially reasonable steps
advisable, necessary or desirable to finally and successfully complete the Exon-Florio
Amendment review process as promptly as practicable, and in any event prior to July 31,
2007.

     (d) Seller shall use its commercially reasonable efforts to provide to Purchaser a
complete list of all export control licenses and other authorizations, whether issued under
EAR or ITAR, granted to the Seller or to the Selling Subsidiaries in respect of any goods,
services or technical data exported by the Business or produced for export by the Business
since May 31. 2006. As soon as reasonably practicable after such list has been provided,
the Seller shall, together with Purchaser, prepare and file with the United States
Department of State, Directorate of Defense Trade Controls, notifications under 22 U.S.C.
§§2778-2780 of the Arms Export Control Act and the ITAR, and, in cooperation with Purchaser,
shall take all commercially reasonable steps advisable, necessary or desirable to novate all
export licenses or other authorizations, whether issued under the EAR or the ITAR,
applicable to the Business, if any.

     Section 6.5 Assignment of Debtor Contracts.

     (a) Seller and Purchaser shall use commercially reasonable efforts to have included in
the Approval Order an authorization for Seller to assume the Debtor Contracts and assign to
Purchaser all Debtor Contracts.

     (b) Without limiting the generality of the foregoing, the Seller shall use commercially
reasonable efforts to ensure that the Approval Order provides that (1) all right, title, and
interest of the Seller under each of the Debtor Contracts included in the Purchased Assets
(the “Purchased Debtor Contracts”) shall, upon Closing, be transferred and assigned to and
fully and irrevocably vest in Purchaser and following Closing each such Purchased Debtor
Contract shall remain in force and effect; (2) each Purchased Debtor Contract is in full
force and effect and is an executory contract or unexpired lease of the Seller under Section
365 of the Bankruptcy Code; (3) the Seller may assume each Purchased Debtor Contract
pursuant to Section 365 of the Bankruptcy Code; (4) the Seller may assign each Purchased
Debtor Contract to Purchaser pursuant to Section 365 of the Bankruptcy code free and clear
of all Liens (other than Permitted Exceptions) and any provisions in any such Purchased
Debtor Contract which purport to prohibit or condition the assignment of such contract
constitute unenforceable anti-assignment provisions which are void and of no force or
effect; (5) all other requirements or conditions of Section 365 of the Bankruptcy Code for
the assumption by Seller and assignment to Purchaser of each Purchased Debtor Contract have
been satisfied; (6) the assignment of each Purchased Debtor Contract is in good faith under
Sections 363(b) and 363(m) of the Bankruptcy Code; and (7) the Seller gave due and proper
notice of such assumption and assignment to each party to a Purchased Debtor Contract.

     (c) Seller and Purchaser shall promptly take all actions reasonably required to assist
in obtaining a Bankruptcy Court finding that there has been adequate demonstration

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of adequate assurance of future performance under the Debtor Contracts, such as
furnishing affidavits, non-confidential financial information or other documents or
information for filing with the Bankruptcy Court and making Seller’s and Purchaser’s
employees and representatives available to testify before the Bankruptcy Court.

     Section 6.6 Cure of Defaults.

     Subject to entry of the Approval Order and it becoming a Final Order, including the
authorization referred to in Section 6.5, Seller shall pay all necessary costs to cure any
and all breaches and defaults with respect to the Debtor Contracts that will be transferred to
Purchaser as and in the amounts required by the Bankruptcy Court to assume and assign the Debtor
Contracts under Section 365 of the Bankruptcy Code (the “Cure Costs”); provided, however, that,
notwithstanding the foregoing, Seller shall be responsible for such cure whether such defaults
occur or arise prior to or after commencement of the Cases. Seller shall pay the Cure Costs at the
Closing or, with respect to a Cure Cost which is the subject of an objection (a “Cure Cost
Objection”), upon resolution of such Cure Cost Objection. Purchaser will make commercially
reasonable efforts to provide adequate assurance of future performance under the Debtor Contracts
as required by Section 365 of the Bankruptcy Code.

     Section 6.7 Amendment of Purchased and Excluded Assets.

     Notwithstanding anything to the contrary in this Agreement or otherwise, (i) Purchaser shall
have the right through Closing to amend Schedule 1.1(e) and Schedule 1.1(f) hereto
to delete any Debtor Contract or Non-Debtor Contract that is not a Purchaser Approved Contract and
to amend Schedule 1.2(f) in a manner consistent with any such permitted amendments to
Schedules 1.1(e) and 1.1(f) and (ii) Purchaser and Seller (as mutually agreed)
shall have the right through Closing to amend Schedule 1.1(e) and Schedule 1.1(f)
hereto, to add any other Contract of the Seller or the Selling Subsidiaries that is Related to the
Business and to amend Schedule 1.2(f) in a manner consistent with any such permitted amendments to
Schedules 1.1(e) and 1.1(f). Seller shall use reasonable commercial efforts to assist Purchaser in
making any deletions or additions to Schedule 1.1(e), Schedule 1.1(f) or
Schedule 1.2(f), including, without limitation providing Purchaser with access to, and
contact and other information it possesses, with respect to all third parties to such Contracts.
Purchaser agrees and acknowledges that its right to take assignment of any Contracts added to
Schedule 1.1(e) is subject to the obligation of the Seller to give reasonable notice to
such parties to such additional contracts of the Seller’s intent to assume such contracts and
assign such contracts to Purchaser.

     Section 6.8 Updating of Information.

     Except with respect to environmental matters, which shall be governed by Section 11.5
below, the parties agree that, if between the date hereof and the Closing Date, Seller obtains
knowledge of any facts or circumstances that result in, or if in existence on the Closing Date,
would reasonably be expected to result in, a material breach of any representation or warranty by
Seller, Seller will notify Purchaser in writing reasonably promptly after learning of such facts or
circumstances. To the extent that any such breach can result in, or would reasonably be expected
to result in, a Material Adverse Effect, Seller shall have 20 calendar days within which to notify
Purchaser that Seller has cured or is proceeding to cure such breach or potential breach or that

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Seller does not intend to cure such breach or potential breach. If Seller notifies Purchaser
that it is proceeding to cure such breach or potential breach, then Purchaser shall not be entitled
to terminate this Agreement for 20 days following receipt of such notice. If Seller notifies the
Purchaser that it does not intend to cure such breach or potential breach or that despite its
diligent efforts Seller has been unable to effect a cure and is ceasing to pursue a cure, or if
Seller is unable to cure such breach during such 20 day period, then the provisions of Section
13.1(b)(i) will apply. If Purchaser does not terminate this Agreement pursuant to Section
13.1(b)(i) and the Closing occurs, the schedules hereto shall be amended as necessary to
reflect the facts underlying such breach or potential breach and Purchaser shall have no rights
against Seller pursuant to Article XI in respect of such breach or potential breach.

     Section 6.9 Litigation Support.

     In the event and for so long as Purchaser actively is contesting or defending against any
action, investigation, charge, claim, or demand by a third party in connection with (i) any
transaction contemplated under this Agreement or (ii) any fact, situation, circumstance, status,
condition, activity, practice, plan, occurrence, event, incident, action, failure to act, or
transaction involving the Business, Seller will cooperate with Purchaser and its counsel in the
contest or defense, make available its personnel, and provide such testimony and access to its
books, records and other materials as shall be reasonably necessary in connection with the contest
or defense, all at the sole cost and expense of Purchaser (unless Purchaser is entitled to
indemnification therefor under Article XI).

     Section 6.10 Transition Agreements.

     At the Closing, Seller, or such of its Subsidiaries as appropriate, shall enter into
agreements substantially in the form of Exhibit J relating to applicable transition
services, each as listed on Schedule 6.10 (collectively, the “Transition Agreements”).

     Section 6.11 Consents and Conditions.

     Seller shall use its reasonable best efforts to take, or cause to be taken, all actions, and
to do, or cause to be done, and to assist and cooperate with Purchaser in doing, all things
necessary, to consummate and make effective the transactions contemplated hereby as promptly as
practicable, including, but not limited to: (i) obtaining all necessary consents, approvals or
waivers from, and giving any necessary notifications to, third parties; (ii) making all required
registrations and filings with, and obtaining all necessary actions or non-actions, waivers,
consents and approvals from, all Governmental Bodies and taking all steps as may be necessary to
obtain an approval or waiver from, or to avoid an action or proceeding by, a Governmental Body;
(iii) assisting Purchaser or its designees in obtaining all Permits referred to in Section
8.9; and (iv) defending any Legal Proceedings challenging this Agreement or the consummation of
the transactions contemplated hereby, including seeking to have any stay or temporary restraining
order or preliminary or permanent injunction entered by any Governmental Body vacated or reversed.

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     Section 6.12 Further Actions.

     (a) Whether before, at or after the Closing, Seller shall, and shall cause its
Subsidiaries to, execute and deliver such instruments and take such other actions as may
reasonably be required to (i) carry out the intent hereof and of the Transition Agreements
and (ii) consummate the transactions contemplated hereby and thereby including the taking of
all acts necessary to cause the conditions to Closing to be satisfied as promptly as
possible. Prior to the Closing Date, Seller agrees to negotiate the Transition Agreements
in good faith with Purchaser

     (b) Seller shall give any notices required by Law and shall take whatever other actions
with respect to the employee plans of Seller as may be necessary to effectuate the
arrangements set forth in Sections 10.1 through 10.4.

ARTICLE VII

COVENANTS OF PURCHASER

     From and after the date hereof and until the Closing (except with respect to Sections
7.4, 7.5, and 7.7, which shall survive the Closing in accordance with their
terms), Purchaser hereby covenants and agrees that:

     Section 7.1 Contact with Customers, Suppliers and Employees.

     Without the prior consent of Seller (acting in accordance with its obligations set forth in
Sections 6.1 and Section 10.1(b)), Purchaser shall not contact any suppliers to, or
customers of, the Business or any Business Employees (other than those listed on Schedule
15.77) in connection with or pertaining to any subject matter of this Agreement or the
Transition Agreements.

     Section 7.2 Bankruptcy Actions.

     Purchaser shall use its commercially reasonable efforts to assist Seller in obtaining entry of
the Approval Order, including providing testimony as required at any hearing before the Bankruptcy
Court.

     Section 7.3 Consents and Conditions.

     (a) Purchaser shall use its reasonable best efforts to take, or cause to be taken, all
actions, and to do, or cause to be done, and to assist and cooperate with Seller in doing,
all things necessary, to consummate and make effective the transactions contemplated hereby
as promptly as practicable, including, but not limited to: (i) obtaining all necessary
consents, approvals or waivers from, and giving any necessary notifications to, third
parties; (ii) making all required registrations and filings with, and obtaining all
necessary actions or non-actions, waivers, consents and approvals from, all Governmental
Bodies and taking all steps as may be necessary to obtain an approval or waiver from, or to
avoid an action or proceeding by, a Governmental Body; (iii)

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obtaining all Permits referred to in Section 8.9; (iv) defending any Legal
Proceedings challenging this Agreement or the consummation of the transactions contemplated
hereby, including seeking to have any stay or temporary restraining order or preliminary or
permanent injunction entered by any Governmental Body vacated or reversed; and (v) promptly
concluding the arrangements referred to in Section 8.11. Without limiting the
generality of the foregoing, Purchaser shall (i) take all actions within Purchaser’s control
to cause the condition to Closing set forth in Section 8.9 to be satisfied prior to
July 31, 2007 and (ii) negotiate in good faith and otherwise use its reasonable best efforts
to cause the condition to closing in Section 8.11 to be satisfied, prior to July 31,
2007.

     (b) Purchaser shall keep Seller reasonably apprised of the status of matters relating
to any of the matters referred to in Section 7.3, including promptly furnishing
Seller with copies of notices or other communications received by Purchaser or by any of its
Subsidiaries from any Governmental Body with respect to the transactions contemplated
hereby. In connection with the foregoing, Purchaser shall promptly furnish to Seller such
necessary information and reasonable assistance as Seller may request and shall promptly
provide counsel for Seller with copies of all filings made by Purchaser, and all
correspondence between Purchaser (and its advisors) with any Governmental Body and any other
information supplied by Purchaser and its Affiliates to a Governmental Body in connection
therewith and the transactions contemplated hereby; provided, however, that Purchaser may,
as it deems advisable and necessary, reasonably designate any competitively sensitive
material provided to Seller as “outside counsel only,” and materials may be redacted (i) to
remove references concerning the valuation of the Business and (ii) as necessary to comply
with contractual arrangements. Materials designated as for “outside counsel only” and the
information contained therein shall be given only to the outside legal counsel of Seller and
will not be disclosed by such outside counsel to employees, officers or directors of Seller
unless express permission is obtained in advance from Purchaser or its legal counsel.
Purchaser shall, subject to applicable Law, permit counsel for Seller reasonable opportunity
to review in advance, and consider in good faith the views of Purchaser in connection with,
any proposed written communication to any Governmental Body in connection with the matters
referred to in this Section 7.3. To the extent practicable, Purchaser agrees to
consult with the Seller prior to participating or permitting its Affiliates to participate,
in any substantive meeting or discussion, either in person or by telephone, with any
Governmental Body in connection herewith and, to the extent not prohibited by such
Governmental Body, agrees to give Seller the opportunity to attend and participate.

     (c) As soon as reasonably practicable after the date hereof, the Purchaser shall,
together with Seller, jointly prepare and file with the CFIUS a joint voluntary notice under
the Exon-Florio Amendment with respect to the transaction contemplated by this Agreement.
The Purchaser shall provide CFIUS with any additional or supplemental information requested
from Purchaser by CFIUS or its member agencies during the Exon-Florio Amendment review
process. The Purchaser shall, in cooperation with Seller, take all commercially reasonable
steps advisable, necessary or desirable to finally and successfully complete the Exon-Florio
Amendment review process as promptly as practicable and in any event prior to July 31, 2007.

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     (d) As soon as reasonably practicable after receipt of the list referred to in
Section 6.4(d), the Purchaser shall, together with Purchaser, prepare and file with
the United States Department of State, Directorate of Defense Trade Controls, notifications
under 22 U.S.C. §§2778-2780 of the Arms Export Control Act and the ITAR, and, in cooperation
with Purchaser, shall take all commercially reasonable steps advisable, necessary or
desirable to novate all export licenses or other authorizations, whether issued under the
EAR or the ITAR, applicable to the Business, if any.]

     Section 7.4 Further Actions.

     (a) Whether before, at or after the Closing, Purchaser shall execute and deliver such
instruments and take such other actions as may reasonably be required to (i) carry out the
intent hereof and of the Transition Agreements and (ii) consummate the transactions
contemplated hereby and thereby including the taking of all acts necessary to cause the
conditions to Closing to be satisfied as promptly as possible. From the execution hereof
until the Closing, Purchaser undertakes to promptly notify Seller of any known breach of any
representation, warranty or covenant of Seller or any circumstance or condition that could
reasonably be expected to constitute such a breach. Prior to the Closing Date, Purchaser
agrees to negotiate the Transition Agreements in good faith with Seller.

     (b) Purchaser shall give any notices required by Law and shall take whatever other
actions with respect to the employee plans of Purchaser as may be necessary to effectuate
the arrangements set forth in Sections 10.1 through 10.4.

     Section 7.5 [Intentionally Omitted.]

     Section 7.6 Use of Seller’s Name.

     Purchaser agrees that:

     (a) within 90 days after the Closing Date, Purchaser shall remove “Dana,” the Dana
Diamond logo and any other similar mark (the “Seller Name”) and any other Trademark, trade
dress, design or logo previously or currently used by Seller or any of its Affiliates that
is not part of the Purchased Intellectual Property from all web sites, buildings, signs and
vehicles of the Business;

     (b) within 120 days after the Closing Date, Purchaser shall remove and cease using the
Excluded Intellectual Property and the Seller Name and any other Trademark, trade dress,
design or logo previously or currently used by Seller or any of its Affiliates that is not
part of the Purchased Intellectual Property in all invoices, letterhead, domain names and
web sites, packaging, advertising and promotional materials, office forms, business cards
and other written and electronic materials;

     (c) within 120 days after the Closing Date (i) Purchaser shall remove and cease using
the Confetti Design Packaging from the inventory of packaging materials and marketing
materials of the Business that is in existence as of the Closing Date (“Existing

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Inventory”) and (ii) Purchaser shall remove and cease using the Seller Name and any
other Trademark, trade dress, design or logo previously or currently used by Seller or any
of its Affiliates that is not part of the Purchased Intellectual Property from those assets
of the Business that are not Existing Inventory, including those assets (such as, but not
limited to, tools, molds and machines) used in association with the manufacture of the
products of the Business or otherwise reasonably used in the conduct of the Business after
the Closing Date (such assets, “Other Marked Assets”);

     (d) In no event shall Purchaser or any Affiliate of Purchaser advertise or hold itself
out as Seller or an Affiliate of Seller at any time before, on or after the Closing Date;
and

     (e) As soon as reasonably practicable after the Closing Date, but in no event later
than 90 days following the Closing Date, Purchaser shall change all filings, licenses, and
other items, to the extent applicable, to delete any references to “Dana” and the Excluded
Intellectual Property.

     Section 7.7 Litigation Support.

     In the event and for so long as Seller actively is contesting or defending against any action,
investigation, charge, claim, or demand by a third party in connection with (a) any transaction
contemplated under this Agreement or (b) any fact, situation, circumstance, status, condition,
activity, practice, plan, occurrence, event, incident, action, failure to act, or transaction on or
prior to the Closing Date involving the Business, or the Seller and its Subsidiaries (including,
without limitation, with respect to reconciliation of claims in connection with the Cases),
Purchaser will cooperate with Seller and its counsel in the contest or defense, make available its
personnel, and provide such testimony and access to its books, records and other materials as shall
be reasonably necessary in connection with the contest or defense, all at the sole control, cost
and expense of Seller (unless Seller is entitled to indemnification therefor under Article
XI).

     Section 7.8 Transition Agreements.

     At the Closing, Purchaser, or such of its Subsidiaries as appropriate, shall enter into the
Transition Agreements.

ARTICLE VIII

CONDITIONS PRECEDENT TO PURCHASER’S OBLIGATIONS

     The obligation of Purchaser to consummate the transactions contemplated hereby on the Closing
Date is subject to the satisfaction (or, if permitted, waiver by Purchaser in its sole discretion)
of each of the following conditions:

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     Section 8.1 Accuracy of Representations and Warranties.

     Each of the representations and warranties of Seller contained herein (without regard to any
reference to materiality or Material Adverse Effect set forth therein) shall be true and correct in
all respects at and as of the Closing Date, (except, in each case, to the extent any such
representation or warranty speaks as of a specific date, in which case such representation or
warranty shall be true and correct as of such specific date); except and excluding, and without
regard to, any breach or breaches of one or more of such representations and warranties (without
regard to any reference to materiality or Material Adverse Effect set forth therein) that, in the
aggregate, do not have and are not reasonably expected to have a Material Adverse Effect.

     Section 8.2 Performance of Covenants.

     Seller shall have performed and complied, in all material respects, with each of the covenants
and provisions hereof required to be performed or complied with by it between the date hereof and
the Closing Date.

     Section 8.3 No Injunctions.

     No preliminary or permanent injunction or other order of any court of competent jurisdiction
restraining or prohibiting the consummation of the transactions contemplated hereby shall be in
effect.

     Section 8.4 Entry of Order By Bankruptcy Court; Material Business Contracts.

     (a) The Bankruptcy Court shall have entered the Approval Order and it shall have become
a Final Order.

     (b) The Approval Order shall authorize the assumption and assignment of each Material
Business Contract to Purchaser and with respect to each Material Business Contract shall
contain the authorizations and findings set forth in Section 6.5.

     Section 8.5 Consents.

All consents set forth on Schedule 8.5 shall have been obtained.

     Section 8.6 Officer’s Certificate.

     Purchaser shall have received a certificate from Seller to the effect set forth in
Sections 8.1, 8.2 and 8.8, dated the Closing Date, signed on behalf of
Seller by an authorized officer of Seller.

     Section 8.7 Other Deliveries.

     Purchaser shall have received the documents and instruments required by Section 3.2
and such other documents or instruments as Purchaser may reasonably request consistent with
Seller’s obligations under this Agreement.

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     Section 8.8 No Material Adverse Effect.

     Between the date hereof and the Closing Date, there shall have been no Material Adverse
Effect.

     Section 8.9 Mexican Permits. 

     All Permits required to operate the Business in all material respects as currently operated in
Mexico (including the registration as a maquiladora under the applicable regulations of Mexico)
which are not permitted by applicable Law to be transferred, shall have been obtained by Purchaser
or its designees.

     Section 8.10 Exon-Florio. 

     CFIUS shall have determined, at the end of the initial 30-day review period (or any additional
investigation period that may be required by CFIUS), that no further investigation of the
transaction contemplated hereby is required.

     Section 8.11 SLP II. 

     Purchaser (or its designees) shall have entered into arrangements with Orhan Holdings, A.S.
(or its Affiliates) that are reasonably satisfactory, in all material respects, to Purchaser with
respect to the continued use by the Business, for a reasonable period of time after the Closing
Date, of the facilities and related services currently used by the Business at the facility
referred to as San Luis Potosi, Mexico II.

ARTICLE IX

CONDITIONS PRECEDENT TO SELLER’S OBLIGATIONS

     The obligation of Seller to consummate the transactions contemplated hereby on the Closing
Date is subject to the satisfaction (or, if permitted, waiver by Seller in its sole discretion) of
each of the following conditions:

     Section 9.1 Accuracy of Representations and Warranties.

     Each of the representations and warranties of Purchaser contained herein that is qualified as
to material adverse effect shall be true and correct in all respects at and as of the Closing Date
with the same force as if made on and as of the Closing Date, and each of the representations and
warranties of Purchaser contained herein that is not so qualified shall be true and correct in all
material respects at and as of the Closing Date with the same force as if made on and as of the
Closing Date (except, in each case, to the extent any such representation and warranty speaks as of
a specific date, in which case such representation and warranty shall be true and correct, or true
and correct in all material respects, as the case may be, as of such specific date).

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     Section 9.2 Performance of Covenants.

     Purchaser shall have performed and complied, in all material respects, with each of the
covenants and provisions hereof required herein to be performed or complied with by it between the
date hereof and the Closing Date.

     Section 9.3 No Injunctions.

     No preliminary or permanent injunction or other order of any court of competent jurisdiction
restraining or prohibiting the consummation of the transactions contemplated hereby shall be in
effect.

     Section 9.4 Entry of Order By Bankruptcy Court.

     The Bankruptcy Court shall have entered the Approval Order and it shall have become a Final
Order.

     Section 9.5 Consents.

All consents set forth on Schedule 9.5 shall have been obtained.

Section 9.6 Officer’s Certificate.

     Seller shall have received a certificate from Purchaser to the effect set forth in
Sections 9.1 and 9.2, dated the Closing Date, signed by an authorized officer of
Purchaser.

     Section 9.7 Other Deliveries.

     The Seller shall have received the documents and instruments required by Section 3.3
and such other documents as Seller may reasonably request consistent with Purchaser’s obligations
under this Agreement.

ARTICLE X

ADDITIONAL POST-CLOSING COVENANTS

     Section 10.1 Transferred Employees.

     (a) Prior to the Closing Date, Purchaser (or one of its Affiliates) shall offer
employment (each such offer contingent upon the Closing, entry of the Approval Order and it
becoming a Final Order) to:

     (i) all but up to 15 percent of the regular, non-temporary salaried Business
Employees employed at Seller’s Rochester Hills, Michigan facility, Wharton, Ohio
facility, Upper Sandusky, Ohio facility, Columbia City, Indiana facility or
Pensacola, Florida facility; it being understood that Purchaser and its Affiliates
may select the specific Business Employees at such facilities to receive offers in
its discretion from among the foregoing employee groups (all such

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salaried Business Employees who receive offers from Purchaser or its Affiliates
collectively referred to as the “Salaried Business Employees”); and

     (ii) all but up to 10 percent of the regular, non-temporary hourly Business
Employees employed at Seller’s Wharton, Ohio facility and all but up to 10 percent
of the regular, non-temporary hourly Business Employees employed at Seller’s
Pensacola, Florida facility who, in each case, are not represented by a labor union;
it being understood that Purchaser and its Affiliates may select the specific
Business Employees at each such facility to receive offers in its discretion from
among the foregoing employee groups (all such hourly Business Employees who receive
offers from Purchaser or its Affiliates collectively referred to as the “Hourly
Business Employees”, and together with the Salaried Business Employees, the
“Non-Union Business Employees”); and

     (iii) all Business Employees who are represented by a labor union under one of
the Assumed Collective Bargaining Agreements (the “Union Business Employees”);

provided, however, that Purchaser (or its Affiliates) shall only be obligated to extend
offers, subject to the terms and conditions of this Section 10.1, to those Salaried
Business Employees, Hourly Business Employees and Union Business Employees who in each case:

     (I) are actively employed as of the Closing Date or are absent from
employment due to vacation or temporary illness (the “Current Employees”);
or

     (II) (A) are absent from work due to short or long-term disability,
workers’ compensation or work related injury schemes, military leave or
other authorized leave of absence or lay off as of the Closing Date and (B)
have the right to return to employment with the Business following
expiration of such absence under applicable Law or under the terms of any
Assumed Collective Bargaining Agreement (the “Leave Employees” and, together
with the Current Employees, the “Closing Date Business Employees”).

Any such offers of employment that Purchaser makes (or has one of its Affiliates make) shall
be made in accordance with the provisions of this Section 10.1. Neither Purchaser
nor any of its Affiliates shall have any obligation to offer employment to any other Person.

     (b) Subject to the approval of Seller (such approval not to be unreasonably withheld),
Purchaser and its Affiliates shall be permitted, within a reasonable period prior to the
Closing Date, to interview Business Employees described in Section 10.1(a) for
purposes of considering such Persons for employment with Purchaser or its Affiliates after
the Closing Date and may discuss terms of post-Closing employment with such Persons.

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     (c) Each offer of employment (i) to a Non-Union Business Employee (A) shall be at a
base salary or other base wage, as applicable, not less than the base salary or other base
wage paid to such Employee immediately prior to the Closing Date (or in the case of a
Non-Union Business Employee who is a Leave Employee, immediately prior to the commencement
of such Leave Employee’s absence from work), unless in each case, a higher base salary or
other base wage is required by Law, and (B) shall have similar skill requirements to the
Non-Union Business Employee’s position immediately prior to the Closing Date, and (ii)
solely for offers to Hourly Business Employees (but not for offers to Salaried Business
Employees), also shall be located no more than fifty (50) miles from such Hourly Business
Employee’s work location immediately prior to the Closing Date. During the six (6) month
period immediately following the Closing Date, for so long as a Non-Union Transferred
Employee continues in employment with Purchaser or one of its Affiliates during such period,
if at all, Purchaser shall continue to abide by the requirements of subparts (i)(A) and
(i)(B) of the preceding sentence for Salaried Business Employees and by the requirements of
subparts (i)(A), (i)(B) and (ii) of the preceding sentence for Hourly Business Employees,
provided that nothing herein limits the Purchaser’s right to terminate Non-Union Business
Employees pursuant to Section 10.1(l) below. Purchaser and its Affiliates retain
the sole discretion to determine the benefits and other terms and conditions of employment
to be offered or provided to any and all Non-Union Transferred Employees, and nothing in the
Agreement shall be interpreted as requiring Purchaser or its Affiliates to offer or provide
any minimum level of benefits or other terms and conditions of employment, except to the
extent required by Law.

     (d) The Non-Union Business Employees who each timely accepts an offer of employment
from Purchaser (or one of its Affiliates) shall be referred to herein as “Non-Union
Transferred Employees.” The Union Business Employees who each timely accepts an offer of
employment from Purchaser (or one of its Affiliates) shall be referred to herein as “Union
Transferred Employees.” The Union Transferred Employees and the Non-Union Transferred
Employees shall collectively be referred to as the “Transferred Employees.” A Current
Employee who receives an offer of employment from Purchaser (or one of its Affiliates) must
accept such offer of employment on or within ten (10) days of such offer or within ten (10)
Business Days of the Closing, if later; otherwise said Business Employee will be deemed
never to have become a Transferred Employee. Notwithstanding the preceding sentence, a
Current Employee who receives an offer of employment from Purchaser (or one of its
Affiliates) and who arrives at his or her then applicable place of employment in the
Business on the first Business Day immediately following the Closing Date shall be deemed
for all purposes of this Agreement to have accepted such offer of employment from Purchaser
(or its Affiliate) hereunder. Each Current Employee who receives and timely accepts an
offer of employment from Purchaser (or one of its Affiliates) shall become an employee of
Purchaser (or one of its Affiliates) as of the Closing Date. Each Leave Employee who
receives an offer of employment from Purchaser (or one of its Affiliates) must accept such
offer of employment on or within ten (10) Business Days before the date of his or her
cessation of leave or layoff and shall following timely acceptance of such offer of
employment become a Transferred Employee of Purchaser (or one of its Affiliates) as of his
or her

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commencement of active employment, provided that: (i) such commencement of active
employment occurs within 12 months after the Closing Date, or, if later, such date as his or
her reemployment rights under any applicable Law or Assumed Collective Bargaining Agreement
may expire; and (ii) such Leave Employee’s former position at his or her former site of
employment has not been eliminated at or prior to his or her return to work, except as
otherwise required by applicable Law or an Assumed Collective Bargaining Agreement;
otherwise said Leave Employee will be deemed never to have become a Transferred Employee.
Seller shall remain responsible for any such Leave Employees for any period before they
become Transferred Employees, and shall inform Purchaser if any such Leave Employees
notifies Seller before closing that they are ready to commence employment with Purchaser or
its Affiliates.

     (e) Effective as of the Closing Date, Purchaser shall, or shall cause one or more of
its Affiliates to (in each case contingent upon the Closing, entry of the Approval Order and
it becoming a Final Order): (x) assume the Assumed Collective Bargaining Agreements as
provided in Section 1.3 to the extent they are in effect as of the Closing Date; and
(y) recognize the UAW parties to the Assumed Collective Bargaining Agreements as the
collective bargaining representatives of the Union Transferred Employees covered by such
Assumed Collective Bargaining Agreements, in each case without waiving any of Purchaser’s or
Affiliates’ rights under applicable Law. Purchaser shall (in each case contingent upon the
Closing, entry of the Approval Order and it becoming a Final Order): (i) recognize the Union
Transferred Employees’ existing seniority with Seller or its Affiliates, as applicable,
under the Assumed Collective Bargaining Agreements for purposes of such agreements, and (ii)
provide those Union Transferred Employees who are covered by any such Assumed Collective
Bargaining Agreement immediately prior to the Closing Date with the Assumed Benefit Plans
(as described in Section 10.3 below) and with such other compensation and benefits
as may be required by the terms of the Assumed Collective Bargaining Agreements, as in
effect or amended, except as otherwise permitted by Law or as is consented to by any labor
organization that is a party to any Assumed Collective Bargaining Agreement.
Notwithstanding the foregoing or any other provision of this Agreement, Purchaser or one or
more of its Affiliates shall have the opportunity to negotiate with the applicable UAW union
prior to the Closing regarding establishment by the Purchaser, or one or more of its
Affiliates of (A) a defined contribution plan intended to provide benefits for periods
after the Closing Date to Union Transferred Employees employed as of the Closing at Seller’s
Upper Sandusky, Ohio facility that are materially consistent with the benefits described for
such employees in the Seller’s Upper Sandusky Union Defined Contribution Plan (“Purchaser
Upper Sandusky Defined Contribution Plan”), and (B) one or more defined benefit plans
intended to provide pension benefits to Union Transferred Employees with respect to service
performed by such employees for Purchaser and its Affiliates after the Closing that are
materially consistent with the pension benefits described in the Assumed Collective
Bargaining Agreements (“Purchaser Union Pension Plans”). Purchaser and its Affiliates shall
not assume any defined contribution plans maintained by Seller or any of its Affiliates
(other than the one defined contribution Plan for Union Transferred Employees at the
Seller’s Columbia City, Indiana facility that is an Assumed Benefit Plan), or any defined
benefit pension plans maintained by Seller or any

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of its Affiliates, in each case in which any of the Union Transferred Employees
participates immediately prior to Closing (such defined benefit pension plans referred to as
the “Seller Union Pension Plans”).

     (f) Purchaser or its Affiliates shall provide the Non-Union Transferred Employees and
their respective eligible dependents with medical, dental, prescription drug and other
welfare benefits (the “Purchaser Welfare Plans”), and such retirement benefits (the
“Purchaser Retirement Plans”) under the Purchaser Welfare Plans and Purchaser Retirement
Plans as Purchaser, in its sole discretion, may determine.

     (i) The Purchaser Welfare Plans shall (i) treat the Non-Union Transferred
Employees and their respective eligible dependents as eligible to participate in the
Purchaser Welfare Plans immediately upon the Closing Date to the same extent such
Non-Union Transferred Employees and their respective eligible dependents were so
eligible under the comparable Seller Employee Benefit Plan immediately prior to the
Closing Date and (ii) give to the Non-Union Transferred Employees and their
respective eligible dependents credit under the Purchaser Welfare Plans for service
with Seller and its Affiliates prior to the Closing Date to the extent such credit
was given under the comparable Seller Employee Benefit Plans immediately prior to
the Closing Date. Such credit for service shall be given for purposes of
eligibility to participate, eligibility for benefits and satisfaction of any waiting
periods under the Purchaser Welfare Plans.

     (ii) Each Non-Union Transferred Employee shall be eligible to participate in
the Purchaser Retirement Plans immediately upon the Closing Date to the same extent
such Non-Union Transferred Employees were so eligible under the comparable Seller
Employee Benefit Plan and shall, except as provided below, be given credit under the
Purchaser Retirement Plans for all service prior to the Closing Date to the extent
such credit was given under the analogous Seller Employee Benefit Plans immediately
prior to the Closing Date. Such credit for service shall be given for purposes of
eligibility to participate, vesting, eligibility for early retirement, and for all
other purposes for which such service is either taken into account or recognized,
other than for benefit accrual purposes.

     (g) Purchaser shall honor all unpaid accrued but unused vacation, personal days,
floating holidays, sick pay and other leave of the Union Transferred Employees as of the
Closing Date, to the extent reflected as a liability in the Closing Statement of Net Assets
(it being understood that Seller and its Affiliates shall not also be required to indemnify
Purchaser or its Affiliates for such amounts pursuant to Section 11.2). Seller
agrees that all unpaid accrued but unused vacation, personal days, floating holidays, sick
pay and other leave of the Non-Union Transferred Employees as of the Closing Date shall be
Seller’s responsibility, and Seller shall, to the extent required by applicable local Law,
pay out such unpaid accrued but unused vacation, personal days, floating holidays, sick pay
and other leave to the Non-Union Transferred Employees promptly following the

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Closing Date (it being understood that Seller and its Affiliates shall not also be
required to indemnify Purchaser or its Affiliates for such amounts pursuant to Section
11.2(a)(iv)).

     (h) Without limiting any other provision of this Agreement, Seller and its Affiliates
shall bear and be solely responsible for, and Purchaser and its Affiliates shall have no
responsibility for, any and all Liabilities arising out of or relating to:

     (i) Any Non-Union Business Employees who do not become Transferred Employees
(including those who do not receive offers of employment from Purchaser or one of
its Affiliates as permitted under this Agreement or who do not accept offers of
employment from Purchaser or one of its Affiliates, provided that such offer of
employment complies with the requirement of Section 10.1(c) above (Purchaser
shall be given a reasonable opportunity to cure any alleged noncompliance after any
discovery thereof with a complying offer), or in the case of Non-Union Business
Employees who are Leave Employees, who do not commence active employment in the
Business with the Purchaser or one of its Affiliates within the period set forth in
Section 10.1(d)), whether any such Liabilities arise prior to, on or after
the Closing Date, including in each case any severance and retention payments and
other monetary or non-monetary obligations;

     (ii) Any Union Business Employees who do not accept offers of employment from
Purchaser or one of its Affiliates, provided that such offer of employment complies
with the requirement of Section 10.1(c) and the applicable terms of the
Assumed Collective Bargaining Agreement (Purchaser shall be given a reasonable
opportunity to cure any alleged noncompliance after any discovery thereof with a
complying offer), or in the case of Union Business Employees who are Leave
Employees, who do not commence active employment in the Business with the Purchaser
or one of its Affiliates within the period set forth in Section 10.1(d)),
whether any such Liabilities arise prior to, on or after the Closing Date, including
in each case any severance and retention payments and other monetary or non-monetary
obligations and all Liabilities with respect to any such Union Business Employees
under any of the Assumed Collective Bargaining Agreements;

     (iii) The transfer of employment from Seller (or its Affiliates) to Purchaser
(or its Affiliates) of any of the Transferred Employees, including any severance,
notice and retention payments (other than pursuant to Section 11.2(b)) and
other monetary or non-monetary Liabilities to which any such Transferred Employees
may be or become entitled from Seller (or its Affiliates) in connection with such
transfers or as a result of the execution and delivery by Seller of this Agreement
and the Seller Closing Documents, the consummation of the transactions contemplated
hereby or compliance by Seller or its Subsidiaries with any of the provisions
hereof, except that Purchaser (or its Affiliates) shall be responsible for any such
Liabilities to Union Transferred Employees that arise

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under the Assumed Collective Bargaining Agreements but may seek indemnification
from Seller for such Liabilities pursuant to Section 11.2;

     (iv) Any Seller Employee Benefit Plan other than an Assumed Benefit Plan,
including all Liabilities under any Seller Union Pension Plans;

     (v) Any Contract (other than the Assumed Collective Bargaining Agreements to
the extent provided above) between Seller or any of its Affiliates and any
Transferred Employee or former Business Employee, including the Retention Agreements
and any other employment, compensation, commission, bonus, benefit, retention,
severance, separation or other agreement with or for the benefit of any Transferred
Employee or any former Business Employee;

     (vi) Any grievances, arbitrations or unfair labor practice charges filed or
arising before the Closing Date with respect to any of the Union Transferred
Employees (subject to Purchaser’s responsibility under Section 10.1(h)(i)
for any non-monetary relief granted pursuant to grievances, arbitrations, or unfair
labor practice charges arising from events that occur prior to the Closing Date),
and any alleged violation of Law (including all Laws pertaining to employment,
discrimination, workers’ compensation, occupational safety and health, and unfair
labor practices), subject to Section 10.1(k) below, if such alleged
violation occurred before the Closing Date;

     (vii) The entire or partial closure or cessation of operations at, or reduction
in workforce at, any facility, location or other site of employment of the Seller or
any of its Affiliates (whether or not relating to the Business) at any time prior to
the Closing Date, including without limitation the former facilities located in
Mitchell, Indiana and Andrews, Indiana, including any Liabilities under the WARN Act
relating to such closure or cessation of operations; and

     (viii) To the extent not addressed in the foregoing provisions of this
Section 10.1(h), Liabilities to the extent such Liabilities are Excluded
Liabilities or are not assumed by Purchaser or its Affiliates under Sections
10.1 through 10.4.

     (i) The Purchaser or its Affiliates, as applicable, shall be solely responsible on and
after the Closing Date for the terms and conditions of employment with Purchaser or its
Affiliates of all Transferred Employees and for any change thereof. As to any Transferred
Employee that Purchaser terminates after the Closing Date, Purchaser shall be solely
responsible for satisfying any requirements applicable to such termination under any
applicable Laws and, subject to Section 10.1(j) below, with respect to each
Transferred Employee, Purchaser shall be solely responsible for all Liabilities for (i) any
Assumed Benefit Plan or Purchaser Welfare Plan or Purchaser Retirement Plan; (ii) any
grievances, arbitrations or unfair labor practice charges filed and arising after the
Closing Date with respect to acts or omissions of Purchaser or any of its Affiliates
occurring after the Closing Date; (iii) any non-monetary relief granted with respect to any
of the Union Transferred Employees pursuant to grievances, arbitrations or unfair labor
practice

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charges arising from events that occur prior to the Closing Date (it being understood
that Seller and its Affiliates shall not also be required to indemnify Purchaser or its
Affiliates for such amounts pursuant to Section 11.2); and (iv) any alleged
violation of Law by Purchaser or any of its Affiliates (including, all Laws pertaining to
employment, discrimination, workers’ compensation, occupational safety and health, unfair
labor practices, and WARN Act violations), if such alleged violation occurred after the
Closing Date.

     (j) With respect to any and all Liabilities arising under the WARN Act: (i) Purchaser
shall be solely responsible for such Liabilities with respect to Transferred Employees (but
not any other Business Employees or any other Persons) if such Liabilities arise solely as a
result of a “mass layoff,” “plant closing” or similar event under the WARN Act conducted by
Purchaser or any of its Affiliates after the Closing and not as a result of the aggregation
of actions or omissions of Purchaser or its Affiliates after the Closing with actions or
omissions of Seller or its Affiliates prior to or after the Closing, (ii) Seller shall be
solely responsible for such Liabilities with respect to Transferred Employees and any other
Business Employees and Persons if such Liabilities arise as a result of a “mass layoff,”
“plant closing” or similar event under the WARN Act conducted by Seller or any of its
Affiliates prior to or after the Closing, but, solely in the case of such Liabilities with
respect to Transferred Employees, only if any actions or omissions of Purchaser or its
Affiliates with respect to such Transferred Employees after the Closing would not
independently constitute a “mass layoff,” “plant closing” or similar event under the WARN
Act if considered alone, and (iii) in the event that any WARN Act Liabilities arise as a
result of the aggregation of actions or omissions of Purchaser or its Affiliates with
respect to Transferred Employees after the Closing with any actions or omissions of Seller
or its Affiliates prior to or after the Closing, and neither Seller’s and its Affiliates’
actions or omissions prior to or after the Closing, if considered alone, nor Purchaser’s and
its Affiliates’ actions or omissions after Closing, if considered alone, would independently
constitute a “mass layoff,” “plant closing” or similar event under the WARN Act, then Seller
and its Affiliates shall be responsible for any and all such Liabilities to any Business
Employees (other than Transferred Employees) and other Persons, and, provided that Seller
and its Affiliates are in compliance with Section 4.13(b) above, Purchaser and its
Affiliates shall be responsible for any and all such Liabilities to any Transferred
Employees (but not any other Business Employees or any other Persons).

     (k) Seller and its Affiliates shall be responsible for (and neither Purchaser nor its
Affiliates are assuming) all Liabilities for workers’ compensation, occupational health and
safety, occupational disease and occupational injury claims with respect to the Transferred
Employees for any injury or illness occurring prior to the Closing (even if a claim for such
an injury or illness is filed after the Closing). Purchaser and its Affiliates shall be
responsible for all Liabilities for workers’ compensation, occupational health and safety,
occupational disease and occupational injury claims with respect to the Transferred
Employees for any injury or illness occurring after the Closing. In the event that workers’
compensation, any occupational health and safety, occupational disease and occupational
injury claim filed after the Closing Date by, on behalf of or with respect to

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the Transferred Employees arises out of any injury or illness that occurred, arose,
progressed, was contributed to or was aggravated in part before and in part after the
Closing: (i) Liabilities for such workers’ compensation, occupational health and safety,
occupational disease and occupational injury claims shall be reasonably apportioned to
Seller and its Affiliates based on the duration and extent of the injured worker’s exposure
to the cause of such injury or illness prior to Closing (the “Seller Portion”), and to
Purchaser and its Affiliates based on the duration and extent of the injured worker’s
exposure to the cause of such injury or illness after Closing, and (ii) Seller and its
Affiliates shall indemnify and hold harmless Purchaser, its Affiliates and the other members
of the Purchaser Indemnified Group from and against any and all such Seller Portion
Liabilities pursuant to Section 11.2(a)(iv).

     (l) Nothing in this Agreement shall prevent the Purchaser or any of its Affiliates from
terminating the employment of any of the Transferred Employees at any time after the
Closing, or otherwise shall guarantee any of the Transferred Employees continued employment
with the Purchaser or any of its Affiliates for any period of time, subject to any
obligations that the Purchaser or its Affiliates may have with respect to Union Transferred
Employees under the Assumed Collective Bargaining Agreements. No Transferred Employee or
other agent, nor any beneficiary or dependent thereof, shall be a third party beneficiary of
this Agreement or be entitled to bring any action or claim hereunder.

     (m) Seller and Purchaser agree to furnish to each other such information as may be
reasonably required with respect to one or more Transferred Employees promptly following
receipt of any reasonable written request from the other.

     Section 10.2 Seller Benefits Plans.

     (a) Effective as of 11:59 p.m. on the Closing Date, the Transferred Employees shall
cease to be credited with service and to accrue any benefits under the Dana Corporation
Retirement Plan (the “Dana Retirement Plan”) and the Dana Corporation Savings and Investment
Plan (the “Dana Defined Contribution Plan”). Each Non-Union Transferred Employee
participating in the Dana Retirement Plan or the Dana Defined Contribution Plan shall be
eligible to receive a distribution of his or her vested accrued benefits under such plan
accordance with its terms. In the event Purchaser maintains a defined contribution plan on
behalf of Non-Union Transferred Employees, Purchaser shall arrange to have the defined
contribution plan or plans sponsored by Purchaser accept direct rollovers from the Dana
Defined Contribution Plan and the Dana Retirement Plan in the form of cash, or in the case
of Non-Union Transferred Employees who have an outstanding participant loan under the Dana
Defined Contribution Plan at the Closing Date, in the form of a transfer of the promissory
note for such participant loan.

     (b) Coverage for all Transferred Employees and their respective eligible dependents
under the Seller Employee Benefit Plans which are welfare benefit plans (as defined in
Section 3(1) of ERISA) (other than the Assumed Benefit Plans) (the “Seller Welfare Plans”)
shall terminate, as of 11:59 p.m. (EST) on the Closing Date. Except as otherwise required
by federal Law (including the Bankruptcy Code), the Seller Welfare

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Plans shall be liable only for claims incurred and benefits earned by the Transferred
Employees on or prior to the Closing Date. The Purchaser Welfare Plans shall be liable for
claims incurred and benefits earned by Transferred Employees (and the eligible dependents of
such Transferred Employees) that are properly payable under the Purchaser Welfare Plans
after the Closing Date. For purposes of this Section 10.2, a claim is “incurred” on
the date the applicable medical or dental services are rendered, drugs or medical equipment
is purchased or, in the case of a continuous period of hospitalization or confinement, the
date of commencement of such period of hospitalization or confinement.

     (c) Seller will continue to administer the flexible spending accounts of any
Transferred Employees who have such flexible spending accounts under any Seller Welfare Plan
(or any other “cafeteria plan” within the meaning of Section 125 of the Code) as of the
Closing Date, for the remainder of the applicable plan year, in accordance with the terms of
the applicable Seller Welfare Plan or cafeteria plan.

     (d) Seller will offer and provide, as appropriate, group health plan continuation
coverage pursuant to the requirements of COBRA to all the current and former employees of
Seller, including without limitation, any Business Employees who are offered employment
pursuant to Section 10.1, to whom they are required to offer the same under
applicable law.

     Section 10.3 Assumed Benefit Plans.

     Effective as of the Closing, Purchaser shall assume sponsorship of the Dana Corporation
Savings and Investment Plan for Hourly Employees of the Coupled Products Inc. Columbia City,
Indiana Facility (the “Columbia City 401(k) Plan”) and any other Seller Employee Benefit Plans
Seller maintains pursuant to collective bargaining agreements covering only Transferred Union
Employees as described in Schedule 10.3 (the “Assumed Benefit Plans”) and listed on
Schedule 10.3. With respect to the Columbia City 401(k) Plan, the only Assumed Benefit
Plan listed in Schedule 10.3 which is a tax-qualified retirement plan subject to ERISA,
Purchaser agrees that:

     (a) Purchaser shall designate a successor trustee and create as soon as practicable
following the Closing Date a trust that intended to be exempt from Federal Income Tax under
Code Section 501(a) and to satisfy the terms of the applicable collective bargaining
agreement to receive the assets of the Columbia City 401(k) Plan;

     (b) At the time of the Closing, Seller shall prepare and sign an amendment to the
Columbia City 401(k) Plan to reflect the change in the sponsoring employer of the Columbia
City 401 Plan to Purchaser or one of its US subsidiaries in a form reasonable acceptable to
Purchaser, and Purchaser or the relevant subsidiary shall execute such plan amendment to
acknowledge its status as the sponsoring employer of the Columbia City 401(k) Plan.

     (c) As soon as practicable following the Closing Date, Purchaser shall provide Seller
with a mutually acceptable succession agreement with respect to the Columbia City 401(k)
Plan signed by Purchaser and the trustee it has appointed.

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     (d) As soon as practicable following receipt of a succession agreement for such
Columbia City 401(k) Plan, along with all necessary approvals or authorizations, information
or similar requirements to effect the transfer (but in no event earlier than forty-five (45)
days after the date of delivery of such agreement, approvals and information the succession
agreement), Seller shall direct the trustee of the Columbia City 401(k) Plan to transfer to
the successor trustee appointed by Purchaser the assets of the Columbia City 401(k) Plan.

 Section 10.4 Non-U.S. Employee Matters.

   Business Employees located in Mexico shall be treated, to the extent practicable under local
law, in accordance with the provisions of Sections 10.1, 10.2, and 10.3,
subject to the provisions set forth on Schedule 10.4.

Section 10.5 Further Assurances; Further Conveyances and Assumptions; Consent of Third
Parties.

     (a) From time to time following the Closing, Seller and Purchaser shall, and shall
cause their respective Subsidiaries to, execute, acknowledge and deliver all such further
conveyances, notices, assumptions, releases and acquittances and such other instruments, and
shall take such further actions, as may be necessary or appropriate to assure fully to
Purchaser and its respective successors or assigns, all of the properties, rights, titles,
interests, estates, remedies, powers and privileges intended to be conveyed to Purchaser
under this Agreement and the Transition Agreements and to assure fully to Seller and its
Subsidiaries and their successors and assigns, the assumption of the Assumed Liabilities and
any Liabilities to be assumed by Purchaser under this Agreement and the Transition
Agreements, and to otherwise make effective the transactions contemplated hereby and thereby
(including (i) transferring back to Seller or the applicable Subsidiary any Excluded Asset
and (ii) transferring to Purchaser any asset or Liability contemplated by this Agreement to
be a Purchased Asset or an Assumed Liability, respectively, which was not transferred to
Purchaser at the Closing).

     (b) Nothing in this Agreement nor the consummation of the transactions contemplated
hereby shall be construed as an attempt or agreement to assign any Purchased Asset,
including any Contract, Permit, certificate, approval, authorization or other right, which
by its terms or by Law, as modified by the Bankruptcy Code, is nonassignable without the
consent of a third party or a Governmental Body or is cancelable by a third party in the
event of an assignment (“Nonassignable Assets”) unless and until such consent shall have
been obtained. Seller shall cooperate with Purchaser at its request in endeavoring to
obtain any such consent promptly.

     (c) Notwithstanding anything in this Agreement to the contrary, unless and until any
consent or approval with respect to any Nonassignable Asset is obtained, such Nonassignable
Asset shall not constitute a Purchased Asset and any Liability associated exclusively with
such Nonassignable Asset shall not constitute an Assumed Liability for any purpose under
this Agreement, and the failure of any such consent or approval to be obtained or the
failure of any such Nonassignable Asset to constitute a Purchased Asset

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or any circumstances resulting therefrom shall not, individually or in the aggregate,
constitute a Material Adverse Effect or a breach by Seller of any representation, warranty,
covenant or agreement contained in this Agreement.

     (d) Once such consent or approval is obtained with respect to a Nonassignable Asset,
Seller shall, or shall cause its applicable Subsidiary to, promptly assign, transfer, convey
and deliver such Nonassignable Asset to Purchaser, and Purchaser shall assume any Liability
associated exclusively with such Nonassignable Asset, for no additional consideration.
Purchaser shall indemnify Seller against any Liabilities arising from Purchaser’s use of the
Nonassignable Assets after the Closing.

Section 10.6 Record Retention, Access to Documents and Cooperation.

     (a) Purchaser shall, and shall cause its Subsidiaries to, afford to Seller’s
representatives, upon reasonable notice and without undue interruption to Purchaser’s
business, access during normal business hours to the books and records (including any such
books and records in electronic format maintained by Purchaser or its Affiliates or agents)
of Purchaser and its Subsidiaries pertaining to the operations of the Business prior to the
Closing Date for that period of time required by any applicable statute or by Seller’s
document retention policy in connection with (i) the preparation of financial statements,
(ii) U.S. Securities and Exchange Commission reporting obligations, (iii) Excluded
Liabilities, (iv) Excluded Assets, (v) the contest or defense by Seller of Legal Proceedings
and investigations, (vi) the Bankruptcy Cases (including, without limitation, with respect
to reconciliation of claims in connection with the Cases), and (vii) other reasonable
business purposes; provided, however, that nothing herein shall limit Seller’s rights of
discovery. With respect to clause (a)(vi), such books and records shall include, without
limitation, purchase orders, receipts, invoices, purchasing cards, inventory records, debit
memos, bills of lading and quality rejection slips and Purchaser shall provide, upon
reasonable notice and without undue interruption to Purchaser’s business, access during
normal business hours in connection with the foregoing to accounts payable clerks or
controllers, receiving persons, purchasing and quality manager personnel. Seller shall have
the right to receive and retain copies of all such books and records.

     (b) Seller shall, and shall cause the Selling Subsidiaries to, afford to Purchaser’s
representatives, upon reasonable notice and without undue interruption to Seller’s business,
access during normal business hours to the books and records (including any such books and
records in electronic format maintained by Seller or its Affiliates or agents) of Seller and
the Selling Subsidiaries pertaining to the operations of the Business prior to the Closing
Date in connection with (i) the preparation of financial statements, (ii) Assumed
Liabilities, (iii) Purchased Assets, (iv) the contest or defense by Purchaser of Legal
Proceedings and investigations, and (v) other reasonable business purposes; provided,
however, that nothing herein shall limit Purchaser’s rights of discovery. Purchaser shall
have the right to receive and retain copies of all such books and records.

     (c) Purchaser agrees to (i) hold all of the books and records of the Business (other
than records relating to Taxes, which shall be governed by Section 14.2) existing on
the

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Closing Date or included in the Purchased Assets for a period of at least twelve months
after the Closing and (ii) not to destroy or dispose of any of such books and records for a
period of ten years after such twelve month period without first offering in writing at
least 30 calendar days prior to such destruction or disposition to surrender them to Seller.

     (d) Purchaser shall, and shall cause its Subsidiaries to, provide (at Seller’s sole
risk, cost and expense) such assistance to Seller as Seller may reasonably request with
respect to the preparation of Seller’s financial statements and U.S. Securities and Exchange
Commission reporting obligations relating to the operation of the Business prior to the
Closing.

Section 10.7 Post-Closing Assistance.

     Subject to any applicable confidentiality obligations of the parties and to any other
applicable legal constraints, at the request of Purchaser, Seller will, through December 31, 2008,
provide Purchaser reasonable assistance with transitioning the Business’ customer relationships
from Seller to Purchaser. Purchaser will reimburse Seller for any and all out-of-pocket costs
incurred by Seller in connection with providing these transition services.

ARTICLE XI

SURVIVAL, INDEMNIFICATION AND RELATED MATTERS

Section 11.1 Survival.

     (a) All representations and warranties contained herein, and the right to commence any
claim with respect thereto, shall terminate at the close of business on the Closing Date,
and neither Purchaser nor Seller nor their respective Subsidiaries shall have any Liability
whatsoever with respect to such representations or warranties after such date, except that
the right to commence any claim with respect to the representations and warranties set forth
in Sections 4.1, 4.2, 4.3, 4.4, 4.5, 4.8(d),
(f), (g), (h) and (i), 4.10(c), (d),
(f) and (g), 4.13(a), 4.13(b), 4.13(g),
4.13(h), 4.15, 4.16(b)(iii), 4.17, 4.18,
4.19, 4.23, 4.24, 4.26, 5.1, 5.2,
5.3, 5.4, 5.5 and 5.8 shall survive the closing until the
first anniversary of the Closing Date. The covenants and agreements of the parties hereto
contained herein (A) that contemplate actions to be taken after Closing shall survive the
Closing and continue in effect in accordance with their terms and (B) that contemplate
actions to be taken only on or prior to Closing shall terminate and cease to be obligations
as of the Closing and no claim, action or proceeding with respect to such covenant or
agreement may be brought after the Closing.

     (b) Each Person entitled to indemnification hereunder shall use its commercially
reasonable efforts to mitigate Losses for which it seeks indemnification hereunder. No
Person shall be entitled to indemnification for Losses hereunder if, on the Closing Date,
such Person had actual conscious awareness (without independent investigation and without
attribution of knowledge or awareness of any facts made available to such Person through
access to any “data room,” by email or otherwise) of the existence of the breach with
respect to which such Person is seeking indemnification hereunder.

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     (c) In calculating any amount of Losses recoverable pursuant to this Article
XI, the amount of such Losses shall be reduced by: (i) any insurance proceeds actually
received by the Indemnified Party from any unaffiliated insurance carrier offsetting the
amount of such Loss, net of any expenses incurred by the Indemnified Party in obtaining such
insurance proceeds (provided that the Indemnified Party shall be obligated to reasonably
seek any such proceeds to which it may be entitled); (ii) any recoveries by the Indemnified
Party from third parties pursuant to indemnification (or otherwise) with respect thereto,
net of any expenses incurred by the Indemnified Party in obtaining such third party payment;
and (iii) any net Tax benefit realized by the Indemnified Party in respect of any Losses for
which such indemnification payment is made, and shall be increased by any net Tax cost
incurred by the Indemnified Party on the accrual or the receipt of the indemnity payment
(other than Taxes resulting from a reduction in Tax basis). If any Losses for which
indemnification payments are made hereunder are subsequently reduced by any Tax benefit,
insurance payment or other recovery from a third party, the Indemnified Party shall promptly
remit the amount of such reduction to the Indemnifying Party. To the extent any
indemnification payment can be properly so characterized under applicable Tax law, it shall
be treated by the parties as an adjustment to the purchase price.

     (d) Notwithstanding anything herein to the contrary, no party shall be liable to any
Indemnified Party for special, incidental, indirect, consequential, punitive or exemplary
Losses.

     (e) Anything in this Article XI to the contrary notwithstanding,
indemnification for any and all Tax matters and the procedures with respect thereto shall be
governed exclusively by Article XIV.

Section 11.2 Indemnification.

     (a) From and after the Closing, Seller hereby agrees to indemnify and hold the
Purchaser Indemnified Group harmless from and against any and all claims, judgments, causes
of action, liabilities, obligations, damages, losses, costs of non-monetary relief,
deficiencies, costs, penalties, interest and expenses (including the reasonable actual
out-of-pocket fees and expenses of counsel) (collectively, “Losses”) arising out of or
resulting from:

     (i) any breach of any representation or warranty of Seller set forth in
Article IV that survives the Closing pursuant to Section 11.1;

     (ii) any breach of, or default in the performance by Seller of, any covenant or
agreement on the part of Seller herein that is to be performed by its terms after
the Closing Date, subject to the limitations and conditions contained therein;

     (iii) any Excluded Liability;

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     (iv) except as set forth in Schedule 10.4, the employment of any of the
Transferred Employees by the Seller or any of its Affiliates at any time prior to
the Closing, including any such Liabilities or other Losses (whether or not arising
under any of the Assumed Collective Bargaining Agreements) arising out of or
relating to any acts or omissions of Seller or any of its Affiliates prior to the
Closing that are or may be deemed to have been assumed by or the responsibility of
Purchaser or any of its Affiliates pursuant to Section 1.3 or Section
10.1 through 10.4 above (it being understood by way of example, and
without limiting the generality of the foregoing, that in the event (i) any former
Union Business Employee discharged by Seller or its Affiliates prior to Closing is
granted reinstatement by an arbitrator or court on or after the Closing to
employment at the Columbia City, Indiana or Upper Sandusky, Ohio plant pursuant to
an Assumed Collective Bargaining Agreement, such reinstatement shall be to
employment with Purchaser or its Affiliates, but Seller and its Affiliates shall be
responsible for and indemnify, defend and hold the Purchaser Indemnified Group
harmless from and against any and all backpay and other Losses due and owing to or
with respect to such Union Business Employee for any period prior to and including
the effective date of his or her reinstatement or (ii) any work rule implemented at
the Columbia City, Indiana or Upper Sandusky, Ohio plants pursuant to the terms of
an Assumed Collective Bargaining Agreement prior to the Closing is ruled invalid or
modified by an arbitrator after the Closing, Seller shall indemnify, defend and hold
the Purchaser Indemnified Group harmless from and against any costs of backpay
awards or similar retroactive Losses due and owing to Union Business Employees for
periods prior to the date of award but shall have no obligation to indemnify
Purchaser Indemnified Group for the on-going costs of complying with such ruling
after the date of the arbitration award including costs of prospective non-monetary
relief);

     (v) any Assumed Collective Bargaining Agreement to the extent that Purchaser or
its Affiliates could not satisfy an obligation thereunder without the cooperation
and consent of Seller or one or more of its Affiliates (including any such
obligation, if any, under Letter #12 dated December 7, 1992 to the Master Agreement
dated June 9, 2003 among Dana Corporation, the UAW, and UAW Local Unions 644 and
1765 representing certain Pottsdown and Lima employees, which Letter #12 is
incorporated by reference into the Columbia City Assumed Collective Bargaining
Agreement, or Article 80 of the Upper Sandusky Assumed Collective Bargaining
Agreement, or any obligation under Article 71 of the Columbia City Assumed
Collective Bargaining Agreement), provided that Purchaser shall reasonably defend
against any grievance or other labor organization claim that seeks to impose such an
obligation, if any;

     (vi) the NLRB Proceedings, but only for retroactive Losses for periods prior to
any final non-appealable judgment, order or award, and not for the ongoing costs of
compliance including the costs of prospective non-monetary relief; and

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     (vii) any claim that the conduct of the Business by Purchaser and its
Subsidiaries, to the extent consistent with the conduct of the Business by Seller
and its Subsidiaries immediately prior to the Closing, infringes upon any
Intellectual Property rights of Seller, its subsidiaries, or their successors and
assigns; and

     (viii) any warranty claim made by customers with respect to products (or any
part or component thereof) sold by the Business prior to the Closing Date or any
recall of any such products that is mandated by any Governmental Body, but only to
the extent that such Losses exceed $600,000 in the aggregate and then only to the
extent that such Losses from any single claim or group of related claims exceed
$50,000.

     (b) From and after the Closing, Purchaser hereby agrees to indemnify and hold the
Seller Indemnified Group harmless from and against any and all Losses arising out of or
resulting from:

     (i) any breach of any representation or warranty on the part of Purchaser
herein that survives the Closing pursuant to Section 11.1;

     (ii) any breach of, or default in the performance by Purchaser of, any covenant
or agreement that is to be performed after the Closing Date, subject to the
limitations and conditions contained therein;

     (iii) Purchaser’s and any of its Subsidiaries’ ownership (or effective
ownership) or operation of the Business, the Purchased Assets from and after the
Closing Date;

     (iv) any Assumed Liabilities; and

     (v) any Severance Payments (as defined in the Retention Agreements) arising
after the Closing Date under any Retention Agreement with any Business Employees who
accepts and executes the written employment offer provided by Purchaser (or one of
its Affiliates) pursuant to Section 10.1 and becomes a Transferred Employee.

Section 11.3 Limitations on Amount.

     (a) Seller will have no liability (for indemnification or otherwise) with respect to
the matters governed by Sections 11.2(a)(i) until the total monetary value of all
Losses with respect to such matters exceeds Fifty Thousand Dollars ($50,000), in which case
Seller shall be liable for just the excess; provided, however, that, for the avoidance of
doubt, the foregoing limitation shall not apply to claims for indemnification under
Section 11.2(a)(viii) or Section 11.5, which shall be subject to the
separate limitations set forth therein. In addition, Seller will have no liability (for
indemnification or otherwise) for the amount by which the total monetary value of all Losses
for breaches of representations and warranties (other than those in Sections 4.1,
4.2, 4.3, 4.4, 4.5, and

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4.18) or the matters governed by Sections 11.2(a)(i)(iv), (v), (vi),
(vii) or (viii) or Section 11.5 exceeds Seven Million Five Hundred
Dollars ($7,500,000).

     (b) Purchaser will have no liability (for indemnification or otherwise) with respect to
the matters governed by Section 11.2(b)(i) until the total monetary value of all
Losses with respect to such matters exceeds Fifty Thousand Dollars ($50,000), in which case
Purchaser shall be liable for just the excess. In addition, Purchaser will have no
liability (for indemnification or otherwise) for the amount by which the total monetary
value of all Losses for breaches of representations and warranties (other than those in
Sections 5.1, 5.2, 5.3, 5.4, 5.5 and 5.8)
exceeds an amount equal to Seven Million Five Hundred Dollars ($7,500,000).

Section 11.4 Procedures for Indemnification.

     Whenever a claim shall arise for indemnification under this Article XI, the party
entitled to indemnification (the “Indemnified Party”) shall promptly notify the party from which
indemnification is sought (the “Indemnifying Party”) of such claim and, when known, the facts
constituting the basis for such claim; provided, however, that in the event of any claim for
indemnification hereunder resulting from or in connection with any claim or Legal Proceeding by a
third party, the Indemnified Party shall give such notice thereof to the Indemnifying Party not
later than ten Business Days prior to the time any response to the asserted claim is required, if
possible, and in any event within five Business Days following receipt of notice thereof; provided,
further, that no delay or failure to give such notice by the Indemnified Party to the Indemnifying
Party shall adversely affect any of the other rights or remedies which the Indemnified Party has
under this Agreement, or alter or relieve the Indemnifying Party of its obligation to indemnify the
Indemnified Party, except to the extent that such delay or failure has materially prejudiced the
Indemnifying Party. In the event of any such claim for indemnification resulting from or in
connection with a claim or Legal Proceeding by a third party, the Indemnifying Party may, at its
sole cost and expense, assume the defense thereof by written notice within 30 calendar days, using
counsel that is reasonably satisfactory to the Indemnified Party; provided, however, that in the
event of any claim for indemnification by a Purchaser Indemnified Party resulting from a claim or
legal proceeding that is reasonably expected to have a continuing effect in any material respect on
the Business or the Purchased Assets, the Indemnified Party shall have the right to control the
defense thereof pursuant to the last sentence of this Section 11.4. If an Indemnifying
Party assumes the defense of any such claim or Legal Proceeding, the Indemnifying Party shall be
entitled to take all steps necessary in the defense thereof including the settlement of any case
that involves solely monetary damages without the consent of the Indemnified Party; provided,
however, that the Indemnified Party may, at its own expense, participate in any such proceeding
with the counsel of its choice without any right of control thereof. The Indemnifying Party, if it
has assumed the defense of any claim or Legal Proceeding by a third party as provided herein, shall
not consent to, or enter into, any compromise or settlement of (which settlement (i) commits the
Indemnified Party to take, or to forbear to take, any action or (ii) does not provide for a full
and complete written release by such third party of the Indemnified Party), or consent to the entry
of any judgment that does not relate solely to monetary damages arising from, any such claim or
Legal Proceeding by a third party without the Indemnified Party’s prior written consent, which
shall not be unreasonably withheld,

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conditioned or delayed. The Indemnifying Party and the Indemnified Party shall cooperate fully
in all aspects of any investigation, defense, pre-trial activities, trial, compromise, settlement
or discharge of any claim in respect of which indemnity is sought pursuant to this Article
XI, including, but not limited to, by providing the other party with reasonable access to
employees and officers (including as witnesses) and other information. So long as the Indemnifying
Party is in good faith defending such claim or proceeding, the Indemnified Party shall not
compromise or settle such claim without the prior written consent of the Indemnifying Party, which
consent shall not be unreasonably withheld, conditioned or delayed. If the Indemnifying Party does
not assume the defense of any such claim or litigation in accordance with the terms hereof, the
Indemnified Party may defend against such claim or litigation in such manner as it may deem
appropriate, including settling such claim or litigation (after giving prior written notice of the
same to the Indemnifying Party and obtaining the prior written consent of the Indemnifying Party,
which consent shall not be unreasonably withheld, conditioned or delayed) on such terms as the
Indemnified Party may reasonably deem appropriate, and the Indemnifying Party will promptly
indemnify the Indemnified Party in accordance with the provisions of this Section 11.4.

Section 11.5 Certain Environmental Matters.

     (a) The parties acknowledge and agree that Purchaser has retained an environmental
consulting firm or firms to undertake an environmental review of the Business and the Owned
and Leased Real Properties prior to the Closing Date, which review shall be generally
consistent with ASTM 1527-05 or similar international standards and which shall also include
a limited compliance review. Such consultant shall prepare an executive summary chart or
other written summary for each property assessed which identifies : (1) any environmental
condition that constitutes a recognized environmental condition under ASTM 1527-05, or (2)
any condition identified through the limited compliance review that represents a violation
of Environmental Laws ((1) and (2), collectively, an “Environmental Condition”).

     (b) With respect to any Environmental Condition so identified, from and after the
Closing Date until the first anniversary of the Closing Date (the “Environmental Testing
Period”), Purchaser shall have the right to conduct such follow-up environmental
assessments, including, without limitation, physical inspections, sampling activities and
installation of monitoring wells (collectively, “Environmental Assessments”), as Purchaser
deems advisable at any Owned or, subject to the consent of the Landlord, Leased Real
Property to verify whether such Environmental Condition is a violation of Environmental Laws
and/or requires cleanup or correction pursuant to Environmental Laws.

     (c) If any such Environmental Assessment reveals the presence of Hazardous Material at,
on or beneath any Owned or Leased Real Property in concentrations exceeding the Trigger
Levels (as defined below) (“Remediation Condition”), or confirms any Environmental Condition
otherwise constituting a non-compliance with Environmental Laws (“Noncompliance Condition”)
where, in each case, the resulting Loss would reasonably be expected to exceed $25,000,
Purchaser shall provide Seller notice pursuant to Section 11.4 and Seller shall
indemnify and hold harmless the

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Purchaser Indemnified Group from and against any all Losses arising from any such
Remediation Condition or Noncompliance Condition, but only to the extent that such Losses
exceed $25,000 for each such Remediation Condition or Noncompliance Condition; provided
however, that Seller shall not be obligated to indemnify Purchaser for any increase in such
Losses to the extent due to acts or omissions of Purchaser or its employees, contractors,
subcontractors, agents or invitees that exacerbate existing conditions. Purchaser shall be
responsible for all costs incurred by Purchaser in conducting any of the assessment and
investigation activities set forth in Section 11.5(a) and (b).

     (d) “Trigger Levels” shall mean such standards for commercial/industrial properties in
effect as of the Closing Date that have been promulgated, adopted or are used in the
ordinary course by the applicable Governmental Body.

     (e) Seller and Purchaser mutually agree to cooperate in connection with any matters
subject to indemnification under this Section 11.5. Upon request, Purchaser shall
provide Seller with (i) any material correspondence, report, technical data or other
material information generated as a result of a remedial action by Purchaser; (ii)
reasonable access, upon reasonable notice, to the Owned Real Property and, subject to the
consent of the landlord, Leased Real Property in a manner that will not disrupt Purchaser’s
operations; and (iii) the right to take split samples in each case for the purpose of
verifying the performance of any remedial action, correction of non-compliance or other
action, the costs for which Seller is required to indemnify Purchaser under this Section
11.5. Seller and Purchaser agree that they each shall maintain in strict confidence any
information concerning any matters subject to indemnification under this Section
11.5; provided however, that Seller and Purchaser may disclose such information to the
extent reasonably necessary to communicate with appropriate Governmental Bodies. If any Law
requires any party to disclose such information, such party will promptly notify the other
party and will give the other party the opportunity to review and comment in advance upon
the content and timing of any such disclosure to the extent reasonably practicable.
Purchaser shall submit any reimbursement requests for which it is seeking indemnification
pursuant to this Section 11.5 to Seller and, as promptly as practicable after
receipt of such reimbursement requests, Seller shall pay any such reimbursement requests.

     (f) Following the Closing, Seller shall control the matters subject to indemnification
under this Section 11.5 and shall consult with Purchaser prior to, and on a periodic
basis while, conducting any remedial action or correction of any non-compliance, or engaging
in any Legal Proceedings involving the Owned Real Property or the Leased Real Property, and
shall give Purchaser the reasonable opportunity to review and comment on any material
governmental filings or other material governmental correspondence relating thereto made by
Seller which comments shall be considered to the extent practicable. Seller shall minimize
the disruption to the Business in connection with any of the foregoing. Purchaser shall
provide Seller with reasonable access to the Owned Real Property as necessary for Seller to
undertake its obligations under this Section 11.5. Seller’s obligation for any
Remedial Condition indemnified under this

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Section 11.5 shall be deemed complete only when the affected property meets
applicable commercial/industrial cleanup objectives in effect when such closure
determination is sought, which standards are satisfactory to or used in the ordinary course
by the relevant Governmental Body with authority and which will not unreasonably interfere
with Purchaser’s continued use or otherwise impair the value of such Owned Real Property for
future industrial or commercial use.

Section 11.6 Exclusive Remedy.

     Except in the case of intentional fraud by any party or any acts by Purchaser in violation of
Section 363(n) of the Bankruptcy Code, and except as provided in Article XIV with respect
to Taxes, Purchaser and Seller agree that, from and after the Closing, the provisions set forth in
this Article XI shall be the sole and exclusive remedy for any claims or causes of action
for money damages arising out of, based upon or resulting from the provisions of this Agreement and
the transactions contemplated hereby and waive to the fullest extent permitted by applicable law
any and all such other claims or causes of action for money damages, whether sounding in contract,
tort or otherwise, and whether asserted at law or in equity. Nothing in this Agreement shall
impair or limit any remedy Seller may have for any breach by Purchaser of Section 363(n) of the
Bankruptcy Code.

ARTICLE XII

NONSOLICITATION

Section 12.1 Nonsolicitation of Purchaser Employees.

     Seller covenants and agrees that for a period of 2 years following the Closing Date, it shall
not, and shall cause its Subsidiaries not to, solicit any Transferred Employee (at a time when such
person is an employee of Purchaser or any of its Subsidiaries) to terminate his or her employment
relationship with Purchaser or any of its Subsidiaries; provided, however, that nothing herein
shall prohibit Seller or any of its Subsidiaries from advertising publicly or from employing
persons who respond to any such advertising whether or not such persons are then employed by
Purchaser or any of its Subsidiaries, or from employing any individual who contacts Seller or any
of its Subsidiaries on an unsolicited basis.

Section 12.2 Nonsolicitation of Seller Employees.

     Purchaser covenants and agrees that for a period of 2 years following the Closing Date or
termination of this Agreement pursuant to Section 13.1, it shall not, and shall cause its
Subsidiaries not to, solicit any employee of Seller or any of its Subsidiaries (at a time when such
person is an employee of Seller or any of its Subsidiaries) to terminate his or her employment
relationship with Seller or any of its Subsidiaries; provided, however, that nothing herein shall
prohibit Purchaser or any of its Subsidiaries from advertising publicly or from employing persons
who respond to any such advertising whether or not such persons are then employed by Seller or any
of its Subsidiaries, or from employing any individual who contacts Purchaser or any of its
Subsidiaries on an unsolicited basis.

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Section 12.3 Remedies.

     Purchaser and Seller each acknowledge that the time, scope and other provisions of this
Article XII have been specifically negotiated by sophisticated commercial parties and
specifically hereby agree that such time, scope and other provisions are reasonable under the
circumstances. It is further agreed that other remedies cannot fully compensate either party for a
violation by the other party of the terms of this Article XII and that such party shall be
entitled to injunctive relief to prevent any such violation or continuing violation by the other
party. It is the intent and understanding of each party hereto that if, in any Legal Proceeding,
any term, restriction, covenant or promise herein is found to be unreasonable and for that reason
unenforceable, then such term, restriction, covenant or promise shall be deemed modified to the
extent necessary to make it enforceable.

ARTICLE XIII

TERMINATION

Section 13.1 Termination.

     This Agreement may be terminated and the transactions contemplated hereby abandoned at any
time prior to the Closing:

     (a) upon the written agreement of Purchaser and Seller;

     (b) (i) by Purchaser if (A) there are any breaches of any representations or warranties
contained in Article IV, that, individually or in the aggregate, result in, or would
reasonably be expected to result in, a Material Adverse Effect, and such breaches have not
been cured within 20 calendar days after notice thereof has been given pursuant to
Section 6.8 or otherwise been waived by Purchaser or (B) a breach of any material
covenant contained in this Agreement has been committed by Seller and such breach has not
been cured within 20 calendar days after notice thereof or been waived by Purchaser or (ii)
by Seller if (A) there are any breaches of any representations or warranties contained in
Article V, that, individually or in the aggregate, result in, or would reasonably be
expected to result in, a material adverse effect on the enforceability of this Agreement or
any other Operative Documents against Purchaser or the ability of Purchaser to perform its
obligations hereunder or thereunder, and such breach has not been cured within 20 calendar
days after notice thereof or otherwise been waived by Seller or (B) a breach of any material
covenant contained in this Agreement has been committed by Purchaser and such breach has not
been cured within 20 calendar days after notice thereof or been waived by Seller;

     (c) by Purchaser, if the Closing has not occurred on or before November 1, 2007, and
the failure to consummate the transactions contemplated by this Agreement on or before such
date did not result from the failure by Purchaser to fulfill any undertaking or commitment
provided for herein that is required to be fulfilled prior to the Closing;

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     (d) by Purchaser or Seller, if any Seller or any Selling Subsidiary has (i) closed an
Alternative Transaction; (ii) filed, supported or advocated in any court, a chapter 11 plan
requesting the Bankruptcy Court to approve an Alternative Transaction or (iii) abandoned or
terminated the sale process set forth in the Bidding Procedures for any material portion of
the Purchased Assets;

     (e) by Seller, if the Closing has not occurred on or before November 1, 2007, and the
failure to consummate the transactions contemplated by this Agreement on or before such date
did not result from the failure by Seller to fulfill any undertaking or commitment provided
for herein that is required to be fulfilled prior to the Closing;

     (f) by Purchaser, if any of the conditions set forth in Article VIII are not
capable of being satisfied;

     (g) by Seller or Purchaser if the Bankruptcy Court shall not have entered the Approval
Order by June 22, 2007 (or the Approval Order shall be vacated or stayed as of such date);

     (h) by Seller, if any of the conditions set forth in Article IX are not capable
of being satisfied; or

     (i) by either Purchaser or Seller if there shall be in effect any Law that prohibits
the consummation of the Closing or if consummation of the Closing would violate any
non-appealable final order, decree or judgment of any Governmental Body having competent
jurisdiction.

Section 13.2 Effect of Termination.

     (a) In the event of termination under Sections 13.1(b), 13.1(c),
13.1(d), 13.1(e), 13.1(f), 13.1(g), 13.1(h), or
13.1(i), written notice thereof shall be given to the other party and this Agreement
shall terminate and the transactions contemplated hereby shall be abandoned, without further
action by either party, upon delivery of such notice, except that Article XII and
Sections 16.9, 16.10, 16.11, 16.13, 16.14,
16.15, 16.16 and 16.17 shall also survive such termination. Upon
any termination hereof pursuant to Section 13.1, no party thereto shall thereafter
have any further liability or obligation hereunder or under any Transition Agreement (except
as expressly provided in Section 13.2(d)).

     (b) Notwithstanding anything in Section 13.2 to the contrary, in the event that
(x) this Agreement is terminated by Purchaser pursuant to any subsection of Section
13.1 or by Seller pursuant to Section 13.1(a), 13.(d), 13.1(e), 
13.1(g) or 13.1(i) and (y) an Alternative Transaction is consummated
within one year after the date of such termination, Seller shall pay to Purchaser an expense
reimbursement in the amount of $250,000 (the “Expense Reimbursement”). The Expense
Reimbursement is intended to compensate Purchaser and its Affiliates for the time and
expense dedicated to this transaction and the value added by Purchaser and its Affiliates in
(i) establishing a bid standard or minimum for other bidders, (ii) placing Seller’s estate
property in a sales configuration mode attracting other bidders to the auction and (iii) for
serving, by its

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name and its expressed interest, as a catalyst for other potential or actual bidders.
The Expense Reimbursement shall be entitled to super-priority administrative expense status
in the case, senior to all other super-priority expense claims other than claims under the
Seller Financing or the carve-out under such Financing in the Cases and shall be paid
immediately in full in cash, without further order of the Bankruptcy Court, at such time as
the Alternative Transaction is consummated. The obligation of Seller to pay the Expense
Reimbursement shall not be discharged, modified or otherwise affected by any plan of
reorganization or liquidation of Seller or any of its Subsidiaries.

     (c) Release of Deposit.

     (i) If this Agreement is terminated pursuant to Sections 13.1(a), 13.1(b)(i),
13.1(c), 13.1(d), Section 13.1(e), 13.1(f), 13.1(g), 13.1(h) or 13.1(i), the Parties
will cause the Deposit Agent to wire transfer the Deposit Amount to an account
designated by Purchaser.

     (ii) In the event this Agreement is terminated pursuant to Section
13.1(b)(ii), the Parties will cause the Deposit Agent to wire transfer the
Deposit Amount to an account designated by Seller.

     (iii) In the event the terms of this Section 13.2(d) conflict with the
terms of the Deposit Agreement, the terms of the Deposit Agreement shall govern.

     (d) If this Agreement is terminated as permitted by Section 13.1, the return of
the Deposit Amount pursuant to the terms of the Deposit Agreement and the payment of the
Expense Reimbursement, if any, pursuant to the terms of this Section 13.2, shall be
the sole and exclusive remedies of Purchaser, whether at law or in equity, for any breach by
Seller or any of its Affiliates of the terms and conditions of this Agreement or the Deposit
Agreement. If this Agreement is terminated by Seller, the forfeiture of the entire Deposit
Amount pursuant to Section 13.2(c)(ii) hereof, shall be the sole and exclusive
remedy of Seller or its bankruptcy estate, whether at law or in equity, for any breach,
other than a breach of Section 363(n) of the Bankruptcy Code, by Purchaser or any of its
Affiliates of the terms and conditions of this Agreement. The parties agree that the
forfeiture by Purchaser of the Deposit Amount pursuant to this Section 13.2 shall be
in the nature of liquidated damages. In the event of a breach by Purchaser or any of its
Affiliates of Section 363(n) of the Bankruptcy Code, Seller shall be entitled to keep the
Deposit Amount and to pursue any other remedies available under Section 363(n) of the
Bankruptcy Code.

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ARTICLE XIV

TAX MATTERS

Section 14.1 Tax Indemnification.

     (a) To the extent not paid (including the payment of estimated Taxes) before Closing or
reflected as a dollar amount on the Closing Statement of Net Assets, Seller shall indemnify
Purchaser and its Affiliates and hold them harmless from all liability for (A) Excluded
Taxes, (B) Taxes arising from or in connection with any breach by Seller of any covenant
contained in this Article (but only to the extent appropriate to reflect the relative fault
of Seller, on the one hand, and Purchaser, on the other hand), (C) Transfer Taxes required
to be borne by Seller pursuant to Section 14.4, (D) Taxes attributable to a breach
of the representations and warranties set forth in Section 4.7, and (E) all costs
and expenses, including reasonable legal fees and expenses, attributable to any item in
clauses (A) through (D).

     (b) Purchaser shall indemnify Seller and its Affiliates and hold them harmless from all
liability for (A) any and all Taxes attributable to a Post-Closing Tax Period of the
Business or reflected as a dollar amount on the Closing Statement of Net Assets, other than
Excluded Taxes, (B) Transfer Taxes required to be borne by Purchaser pursuant to Section
14.4, (C) Taxes arising from or in connection with any breach by Purchaser of any
covenant contained in this Article XIV (but only to the extent appropriate to
reflect the relative fault of Purchaser, on the one hand, and Seller, on the other hand) and
(D) all costs and expenses, including reasonable legal fees and expenses, attributable to
any item in clauses (A) through (C).

     (c) Any indemnity payment to be made pursuant to this Section 14.1 shall be
paid no later than the latest of (i) ten (10) days after the indemnified party makes written
demand upon the indemnifying party, (ii) five (5) days prior to the date on which the
underlying amount is required to be paid by the indemnified party and (iii) five (5) days
after any dispute about the liability for or amount of such indemnity payment is resolved.

     (d) The indemnification provisions in this Section 14.1 shall survive the
Closing until 90 days after the expiration of the applicable statute of limitations for the
Tax giving rise to the claim for indemnification.

     (e) The Closing Statement of Net Assets is to reflect (i) prepaid Property Taxes as an
asset and (ii) accrued Property Taxes as a liability. The parties agree that all Property
Taxes imposed on or with respect to the Purchased Assets will be pro-rated as of the Closing
Date and that, notwithstanding any other provision of this Agreement, the economic burden of
any such Property Tax will be borne by Seller for all Pre-Closing Tax Periods (including the
portion of a Straddle Period through the Closing Date) and by Purchaser for all
Post-Closing Tax Periods (including the portion of a Straddle Period after the Closing
Date). Accordingly, notwithstanding any other provision of this Agreement, (i) if Seller or
any of its Affiliates pays (either before or after Closing) any such Property Tax with
respect to a Post-Closing Tax Period, Purchaser will reimburse

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Seller upon demand for the amount of such Property Tax to the extent it is not
reflected as an asset on the Closing Statement of Net Assets; and (ii) if Purchaser or any
of its Affiliates pays (after Closing) any such Property Tax with respect to a Pre-Closing
Tax Period, Seller will reimburse Purchaser upon demand for the amount of such Property Tax
to the extent it is not reflected as a liability on the Closing Statement of Net Assets.

Section 14.2 Cooperation.

     Each party hereto shall, and shall cause its Affiliates to, provide the other party hereto
with such cooperation, documentation and information as either of them reasonably may request in
(a) filing any Tax Return, amended Tax Return or claim for refund, (b) determining a liability for
Taxes or an indemnity obligation under this Article XIV or a right to refund of Taxes, (c)
conducting any Tax Proceeding or (d) determining an allocation of Taxes between a Pre-Closing Tax
Period and Post-Closing Tax Period. Such cooperation and information shall include providing
copies of all relevant portions of relevant Tax Returns, together with all relevant accompanying
Schedules and work papers (or portions thereof) and other supporting documentation, relevant
documents relating to rulings or other determinations by taxing authorities and relevant records
concerning the ownership and Tax basis of property and any other relevant information, which any
such party may possess. Each party will retain all Tax Returns, Schedules and work papers, and all
material records and other documents relating to Tax matters, of the relevant entities for their
respective Tax periods ending on or prior to or including the Closing Date until the later of (x)
the expiration of the statute of limitations (taking into account any extensions) for the Tax
periods to which the Tax Returns and other documents relate or (y) eight years following the due
date (without extension) for such Tax Returns. Thereafter, the party holding such Tax Returns or
other documents may dispose of them after offering the other party reasonable notice and
opportunity to take possession of such Tax Returns and other documents at such other party’s own
expense. Each party shall make its employees reasonably available on a mutually convenient basis
at its cost to provide explanation of any documents or information so provided.

Section 14.3 Tax Treatment of Indemnification Payments.

     Except as otherwise required pursuant to a “determination” under Section 1313(a) of the Code
(or any comparable provision of state, local, or foreign Law), Seller, Purchaser, their respective
Affiliates shall treat any and all payments under this Article XIV as an adjustment to the
purchase price for all Tax purposes.

Section 14.4 Transfer Taxes.

     To the extent that any sales, use, registration, transfer (including all stock transfer and
all real estate transfer and conveyance and recording fees, if any), stamp, stamp duty reserve,
stamp duty land tax, VAT, or other similar Taxes and all notarial fees (collectively, “Transfer
Taxes”) that may be imposed upon, payable, collectible or incurred in connection herewith and the
transactions contemplated hereby, the cost of such Transfer Taxes shall be divided evenly between
Purchaser and Seller; provided, however, that any VAT Taxes that are recoverable (by way of refund,
credit, or otherwise) by the Purchaser or any of its Affiliates from the relevant tax authorities
under applicable Law shall be paid entirely by Purchaser. Seller and Purchaser shall

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cooperate in the execution and filing of any Tax Returns, affidavits or other documents
relating to any Transfer Taxes. Seller acknowledges that it will seek from the Bankruptcy Court as
part of the Approval Order a waiver of Transfer Taxes under Section 1146 of the Bankruptcy Code.
Seller shall use commercially reasonable efforts to obtain such relief as part of the Approval
Order.

Section 14.5 Other Agreements.

     (a) After the Closing, this Article XIV shall supersede any and all Tax-sharing
or similar agreements to which Seller or any of its Affiliates are parties.

     (b) The rights and obligations of the Parties with respect to indemnification for any
and all Tax matters shall be governed solely by this Article XIV.

ARTICLE XV

DEFINITIONS AND TERMS

As used in this Agreement, the following terms shall have the meanings set forth below:

Section 15.1 Affiliate.

     “Affiliate” means, as to any Person, (a) any Subsidiary of such Person and (b) any other
Person that, directly or indirectly, controls, is controlled by, or is under common control with,
such Person, including (without limitation) all entities that, together with the Seller, are
treated as a single employer under Section 414(b) or (c) of the Code. For the purposes of this
definition, “control” means the possession of the power to direct or cause the direction of
management and policies of Person, whether through the ownership of voting securities, by contract
or otherwise.

Section 15.2 Agreement.

“Agreement” has the meaning set forth in the preamble.

Section 15.3 Allocation Schedule.

“Allocation
Schedule” has the meaning set forth in
Section 2.4.

Section 15.4
Alternative Transaction.

    “Alternative Transaction” means a sale or other transaction involving the transfer of any
material portion of the Purchased Assets to a party other than Purchaser.

Section 15.5 Approval Order.

“Approval Order” has the meaning set forth in Section 6.3.

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Section 15.6 Assumed Benefit Plans

“Assumed
Benefit Plans” has the meaning set forth in
Section 10.3.

Section 15.7 Assumed Collective Bargaining Agreements.

“Assumed Collective Bargaining Agreements” means solely the following agreements:

     (i) That certain Collective Bargaining Agreement between the International
Union, United Automobile, Aerospace and Agricultural Implement Workers of America,
UAW (“UAW”), and its affiliated Local Union No. 2049 (Unit #1) and Dana Corporation,
Coupled Products, Columbia City, Indiana, effective September 9, 2004 and
terminating February 12, 2008 (the “Columbia City Assumed Collective Bargaining
Agreement”), and

     (ii) That certain Agreement Between Dana Corporation, Fluid Routing Products
Group, Upper Sandusky, Ohio Plant and the UAW and its affiliated Local Union No.
1588, effective May 11, 2005 and terminating March 31, 2009 (the “Upper Sandusky
Assumed Collective Bargaining Agreement”),

but, in each case, solely with respect to the Union Transferred Employees, and solely to the extent
provided in, and subject to the limitations of, Sections 1.3, 1.4, 10.1
through 10.4 and 11.2.

Section 15.8 Assumed Liabilities.

“Assumed
Liabilities” has the meaning set forth in
Section 1.3.

Section 15.9
Bankruptcy Avoidance Actions.

“Bankruptcy
Avoidance Actions” has the meaning set forth in Section 1.2(p).

Section 15.10
Bankruptcy Code.

“Bankruptcy Code” means 11 U.S.C. Section 101, et. seq., as it may be amended during the
Cases.

Section 15.11 Bankruptcy Court.

     “Bankruptcy Court” means the United States Bankruptcy Court for the Southern District of New
York, or any other court having jurisdiction over the Cases from time to time.

Section 15.12 Bidding Procedures Order

“Bidding Procedures Order” has the meaning set forth in the Recitals.

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Section 15.13 Bidding Procedures

“Bidding Procedures” has the meaning set forth in the Recitals.

Section 15.14
Business.

     “Business” means the design, manufacture, assembly and sale of hose and tube assemblies and
related and associated components thereof for fluid routing products and systems as currently
conducted by and through Seller’s Fluid Products Group through facilities in North America, for
ultimate use by original equipment manufacturers and original equipment servicers in fluid routing
applications including fuel, brake, power assisted steering, heating ventilation and air
conditioning for use in light vehicles and commercial and recreational vehicles as engaged in by
Seller and its Selling Subsidiaries prior to the Closing; provided, however, that the Business
shall not include the activities or operations of the Hose and Tubing Business.

Section 15.15 Business Day.

    “Business Day” means any day other than a Saturday, a Sunday or a day on which banks in New
York, New York are authorized or obligated by Law to close.

Section 15.16 Business Employee Benefit Plan

    “Business Employee Benefit Plan” means any Seller Employee Benefit Plan that provides or has
provided benefits to any Business Employee or any beneficiary or dependant thereof.

Section 15.17 Business Employee.

     “Business Employees” means all employees employed immediately prior to the Closing Date by
Seller or any of its Affiliates who are principally dedicated to the Business.

Section 15.18 Cases.

“Cases” has the meaning set forth in the Recitals.

Section 15.19
CERCLA.

     “CERCLA” means the Comprehensive Environmental Response, Compensation and Liability Act, 42
U.S.C. 9601 et. seq.

Section 15.20 Chapter 11 Expenses.

   “Chapter 11 Expenses” means the costs incurred and expenses paid or payable by the Seller or
any Affiliate in connection with the administration of the Cases, including, without limitation:
(a) fees and expenses related to any debtor-in-possession financing, (b) obligations to pay
professional and other fees and expenses in connection with the Cases (including, without
limitation, fees of attorneys, accountants, investment bankers, financial advisors, noticing
agents, and consultants retained by the Seller or any Affiliate, any creditors’ or equity
committee, or any

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debtor-in-possession or pre-petition lender, and any compensation for making a substantial
contribution to the Cases), (c) fees and expenses payable to the United States Trustee under
Section 1930 of title 28, United States Code, and (d) expenses of members of any creditors’ or
equity holders’ committee.

Section 15.21 Chosen Court.

“Chosen
Court” has the meaning set forth in Section 16.14.

Section 15.22
Closing.

“Closing”
has the meaning set forth in Section 3.1.

Section 15.23 Closing Date.

“Closing Date” has the meaning set forth in Section 3.1.

Section 15.24 Closing Date Business Employees.

“Closing Date Business Employees” has the meaning set forth in Section 10.1(a).

Section 15.25
Closing Net Working Assets.

“Closing
Net Working Assets” has the meaning set forth in Section 2.2(e).

Section 15.26 Closing Statement of Net Assets.

“Closing
Statement of Net Assets” has the meaning set forth in Section 2.2(c).

Section 15.27 COBRA.

     “COBRA” means the provisions of Code Section 4980B and Part 6 of Title I of ERISA, as amended,
any implementing regulations, and any applicable similar state law.

Section 15.28
Code.

“Code” means the Internal Revenue Code of 1986, as amended.

Section 15.29 Columbia City 401(k) Plan.

“Columbia
City 401(k) Plan” has the meaning set forth in Section 10.3.

Section 15.30
Commitments.

     “Commitments” means the commitments for title insurance issued by First American Title
Insurance Company providing for the issuance of a current owner’s policy of title insurance showing
title vested in Seller, or the Selling Subsidiary, for each parcel of Owned Real Property in the
forms attached hereto and made a part hereof as Exhibit M.

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     Section 15.31 Contract.

     “Contract” means any contract or agreement, including without limitation any indenture, note,
bond, loan, instrument, lease (including real property leases), conditional sale contract, purchase
or sales orders or mortgage, whether written or oral.

     Section 15.32 Cure Costs.

     “Cure Costs” has the meaning set forth in Section 6.6.

      Section 15.33 Current Employees.

     “Current Employees” has the meaning set forth in Section 10.1(a).

     Section 15.34 Dana Defined Contribution Plan.

     “Dana Defined Contribution Plan” has the meaning set forth in Section 10.2.

     Section 15.35 Dana Retirement Plan.

     “Dana Retirement Plan” has the meaning set forth in Section 10.2.

     Section 15.36 Debtor Contracts.

     “Debtor Contracts” has the meaning set forth in Section 1.1(e).

     Section 15.37 Debtors.

     “Debtors” has the meaning set forth in the Recitals.

     Section 15.38  Deposit Agent.

     “Deposit Agent” has the meaning set forth in Section 2.5.

     Section 15.39 Deposit Agreement.

     “Deposit Agreement” has the meaning set forth in Section 2.5.

     Section 15.40 Deposit Amount.

     “Deposit Amount” has the meaning set forth in Section 2.5.

     Section 15.41 Employee Benefit Plan.

     “Employee Benefit Plan” means any “employee benefit plan” as defined by Section 3(3) of ERISA,
whether or not subject to ERISA, and, whether written or oral and whether or not maintained in the
United States, and any other written or oral employee stock option, stock appreciation, stock
purchase, phantom stock, or other equity-based performance, deferred compensation, profit-sharing,
pension, retirement, retiree benefit, employment, termination or

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severance pay, change of control, vacation, medical, life, health, dental, sick pay or
disability, accident, group or individual insurance, vacation pay, holiday pay, or other welfare or
fringe benefit plan, policy, agreement or other obligation. Employee Benefit Plan shall not
include Social Security, Medicare, workers compensation, or any similar mandated social welfare
benefit or scheme administered by any federal, state or local government.

     Section 15.42 Endorsements.

     “Endorsements” means contiguity endorsements, if applicable and if available in the State in
which the Owned Real Properties are located, endorsements insuring compliance with any covenants,
conditions and restrictions constituting Permitted Exceptions, access endorsements, endorsements
deleting the so-called creditor’s rights exception or exclusion, owner’s comprehensive
endorsements, tax parcel endorsements, survey endorsements, legal description equivalency
endorsements, 3.1 zoning endorsements (with parking), utility facilities endorsements, plat act
endorsements, and such other endorsements as Purchaser shall reasonably request.

     Section 15.43 Environment.

     “Environment” means any surface water, groundwater, land surface, subsurface strata, man made
structure or building, sediment, plant or animal life, natural resources, indoor or outdoor air,
soil and subsoil.

     Section 15.44 Environmental Law.

     “Environmental Law” means any Law concerning: (a) the Environment, including pollution,
contamination, cleanup, preservation, protection, and reclamation of the Environment; (b) health or
safety, including occupational safety and the exposure of employees and other persons to any
Hazardous Material; (c) any Release or threatened Release of any Hazardous Material, including
investigation, monitoring, clean up, removal, treatment, or any other action to address such
Release or threatened Release; and (d) the management of any Hazardous Material, including the
manufacture, generation, formulation, processing, labeling, distribution, introduction into
commerce, registration, use, treatment, handling, storage, disposal, transportation, re-use,
recycling or reclamation of any Hazardous Material, including, but not limited to, CERCLA, RCRA,
the Hazardous Materials Transportation Act, 49 U.S.C. 1802 et. seq., the Toxic Substances Control
Act, 15 U.S.C. 2601 et. seq., the Federal Water Pollution Control Act, 33 U.S.C. 1251 et. seq., the
Clean Air Act, 42 U.S.C. 7401 et. seq., Occupational Safety and Health Act, 29 U.S.C. 651 et. seq.,
as well as Mexico’s General Law of Ecological Equilibrium and Environmental Protection (“Ley
General del Equilibrio Ecológico y la Protección al Ambiente”), Mexico’s General Law for the
Prevention and Integral Management of Wastes (“Ley General para la Prevención y Gestión Integral de
los Residuos”), Mexico’s National Waters Law (“Ley de Aguas Nacionales”), Mexico’s General Health
Law (“Ley General de Salud”), and their respective and corresponding regulations, including the
Federal Regulation for Safety and Health in the Work Environment (“Reglamento Federal de Seguridad,
Higiene y Medio Ambiente en el Trabajo”) and Regulations of the General Law for the Prevention and
Integrated Management of Waste (“Reglamento de la Ley General para la Prevención y Gestión Integral
de los Residuos”) as such laws and regulations have been

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amended or supplemented, and including but not limited to the following Mexican Official
Norms: NOM-052-SEMARNAT-2005, NOM-053-SEMARNAT-1993, NOM-138-SEMARNAT/SS-2003,
NOM-147-SEMARNAT/SSA1-2004, AND NOM-010-STPS-1999.

     Section 15.45 Environmental Assessments.

     “Environmental Assessments” has the meaning set forth in Section 11.5(b).

     Section 15.46 Environmental Condition.

     “Environmental Condition” has the meaning set forth in Section 11.5(a).

     Section 15.47 Environmental Testing Period.

     “Environmental Testing Period” has the meaning set forth in Section 11.5(b).

     Section 15.48 ERISA.

     “ERISA” means the Employee Retirement Income Security Act of 1974, as amended, and the
regulations promulgated thereunder.

     Section 15.49 Estimated Adjustment Amount

     “Estimated Adjustment Amount” has the meaning set forth in Section 2.2(a).

     Section 15.50 Excluded Assets.

     “Excluded Assets” has the meaning set forth in Section 1.2.

     Section 15.51 Excluded Intellectual Property.

     “Excluded Intellectual Property” has the meaning set forth in Section 1.2(d).

     Section 15.52 Excluded Liabilities.

     “Excluded Liabilities” means all Liabilities of Seller and any of its Subsidiaries other than
Assumed Liabilities.

     Section 15.53 Excluded Taxes.

     “Excluded Taxes” means to the extent not paid (including the payment of estimated Taxes)
before Closing or reflected on the Closing Statement of Net Assets as a dollar amount, any Taxes
imposed on or payable with respect to the Business for any Pre-Closing Tax Period (other than Taxes
resulting from any act or transaction taken by Purchaser or its Affiliates after the Closing).

     Section 15.54 Existing Inventory.

     “Existing Inventory” has the meaning set forth in Section 7.6(c).

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     Section 15.55 [Intentionally Omitted].

     Section 15.56 Expense Reimbursement Order.

     Section 15.57 Expense Reimbursement.

     “Expense Reimbursement” has the meaning set forth in Section 13.2(b).

     Section 15.58 [Intentionally Omitted].

     “Final Cash Consideration” has the meaning set forth in Section 2.1(a).

     Section 15.59 Final Consideration.

     Section 15.60 Final Order.

     “Final Order” means an order of the Bankruptcy Court or other court of competent jurisdiction:
(a) as to which no appeal, notice of appeal, motion to amend or make additional findings of fact,
motion to alter or amend judgment, motion for rehearing or motion for new trial, request for stay,
motion or petition for reconsideration, application or request for review, or other similar motion,
application, notice or request (collectively, a “Challenge”) has been timely filed, or, if any of
the foregoing has been timely filed, it has been disposed of in a manner that upholds and affirms
the subject order in all respects without the possibility for further Challenge thereon; (b) as to
which the time for instituting or filing a Challenge shall have expired; and (c) as to which no
stay is in effect; except that the Approval Order shall be a Final Order if (x) the time for
instituting or filing a Challenge has expired, (y) no stay of the Approval Order is in effect and
(z) in the reasonable opinion of the Purchaser, any Challenge that was timely filed is not likely
to amend, revoke, supplement, vacate or otherwise modify the Approval Order in a manner that would
be materially adverse to the Purchaser.

     Section 15.61 Financial Statements.

     “Financial Statements” has the meaning set forth in Section 4.6.

     Section 15.62 Foreign Country Tax Agreements.

     “Foreign Country Tax Agreements” means the agreements attached as Exhibit L relating
to Tax allocation and indemnification in certain foreign countries.

     Section 15.63 GAAP.

     “GAAP” means generally accepted accounting principles in the United States of America, which
are applicable to the circumstances as of the date of determination.

     Section 15.64 Governmental Body.

     “Governmental Body” means any government or governmental or regulatory body thereof, or
political subdivision thereof, of any country or subdivision thereof, whether national,

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federal, state or local, or any agency or instrumentality thereof, or any court or arbitrator
(public or private), other than the Bankruptcy Court or any other court of competent jurisdiction
over the Cases or over any appeal of an Order entered in the Cases.

     Section 15.65 [Intentionally Omitted].

     Section 15.66 Hazardous Material.

     “Hazardous Material” means collectively, any material defined as, or considered to be, a
“hazardous waste,” “hazardous substance,” regulated substance, pollutant or contaminant under any
Environmental Law including asbestos, PCBs, oil, petroleum or any fraction thereof.

     Section 15.67 Hourly Business Employees.

     “Hourly Business Employees” has the meaning set forth in Section 10.1(a)(ii).

     Section 15.68 Hose and Tubing Business.

     “Hose and Tubing Business” has the meaning set forth in Section 1.2(j).

     Section 15.69 Indemnified Party.

     “Indemnified Party” has the meaning set forth in Section 11.4.

     Section 15.70 Indemnifying Party.

     “Indemnifying Party” has the meaning set forth in Section 11.4.

     Section 15.71 Independent Auditors.

     “Independent Auditors” has the meaning set forth in Section 2.2(d).

     Section 15.72 Initial Cash Consideration.

     “Initial Cash Consideration” has the meaning set forth in Section 2.1(a).

     Section 15.73 [Intentionally Omitted].

     Section 15.74 Intellectual Property.

     “Intellectual Property” means all transferable intellectual or industrial property rights or
other similar proprietary rights in any jurisdiction, including such rights in and to: (a)
Trademarks; (b) copyrights and copyrightable works including software source code, object code,
data and documentation; (c) Patents; (d) invention disclosures, discoveries and improvements,
whether or not patentable; (e) Trade Secrets; (f) Internet domain names; and (g) the goodwill
associated with each of the foregoing.

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     Section 15.75 Intellectual Property Contract.

     “Intellectual Property Contract” means all agreements concerning Intellectual Property
exclusively used in the Business to which Seller is a party, including, without limitation,
agreements granting Seller and its Subsidiaries rights to use the Licensed Intellectual Property.

     Section 15.76 IT Assets.

     “IT Assets” means the proprietary software Related to the Business set forth on Schedule
15.76.

     Section 15.77 Knowledge.

     “Knowledge” means the actual knowledge as of the date hereof, with respect to those
representations and warranties that are deemed made as of the Closing Date pursuant to Section
8.1, of the individuals set forth on Schedule 15.77.

     Section 15.78 Law.

     “Law” means any international, national, federal, state or local law (including common law),
treaty, statute, constitutional provision, code, ordinance, rule, regulation, directive,
concession, Order or other requirement or guideline of any country or subdivision thereof.

     Section 15.79 Leased Real Properties.

     “Leased Real Properties” means the real property leased pursuant to, and subject to, the Real
Property Leases.

     Section 15.80 Leave Employees.

     “Leave Employees” has the meaning set forth in Section 10.1(a).

     Section 15.81 Legal Proceeding.

     “Legal Proceeding” means any judicial, administrative or arbitral action, suit, proceeding
(public or private) or governmental proceeding or investigation.

     Section 15.82 Liabilities.

     “Liabilities” means any and all: (a) debts; (b) claims, (including, “claims” as that term is
defined in sections 101(5)(A) and 101(5)(B) of the Bankruptcy Code, except that a right to
equitable remedy shall also be considered a claim whether or not the breach gives rise to a right
to payment); (c) judgments, demands, guarantees, interest, penalties, fines or other charges or
assessments, whether assessed or assessable; (d) rights of setoff, offset or recoupment held, or
any other claims, rights or defenses that may be asserted, by any Person; (e) obligations to comply
with any settlement agreements, voluntary assurances any other similar decrees, agreements and
settlements entered with any Person; and (f) other liabilities, commitments and obligations,
whether or not fixed, contingent or absolute, matured or unmatured, liquidated or

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unliquidated, accrued or unaccrued, known or unknown, whether imposed by agreement,
understanding, Law, equity or otherwise.

     Section 15.83 Licensed Intellectual Property.

     “Licensed Intellectual Property” shall mean the Intellectual Property that any third Person
has licensed to Seller or any of its Selling Subsidiaries or otherwise authorized Seller or any of
its Selling Subsidiaries to use exclusively in connection with the Business under the terms of any
Intellectual Property Contract.

     Section 15.84 Lien.

     “Lien” means any lien (statutory or otherwise), pledge, mortgage, deed of trust, security
interest, charge, option, right of first refusal, easement, covenant, condition, restriction,
servitude, transfer restriction, encumbrance or conditional sale or other title retention
agreement.

     Section 15.85 Losses.

     “Losses” has the meaning set forth in Section 11.2.

     Section 15.86 Material Adverse Effect.

     “Material Adverse Effect” means any change, event, impairment or effect that is (or would
reasonably be expected to be) materially adverse to the Purchased Assets or the financial condition
or operations of the Business, taken as a whole, except for any such change, event or effect
resulting from or arising out of (i) changes or developments in financial or securities markets
(including currency exchange or interest rates); (ii) general economic conditions affecting the
industry in which the Business is conducted and which do not have a materially disproportionate
effect on the Business; and (iii) the impact associated with the announcement of the transactions
contemplated hereby.

     Section 15.87 Material Business Contracts.

     “Material Business Contracts” has the meaning set forth in Section 4.11.

     Section 15.88 Michigan Sublease.

     “Michigan Sublease” has the meaning set forth in Section 3.2.

     Section 15.89 Modified GAAP.

     “Modified GAAP” means GAAP as modified by the principles, methods and examples set forth in
Schedule 15.89.

     Section 15.90 Net Working Assets Adjustment.

     “Net Working Assets Adjustment” has the meaning set forth in Section 2.2(f).

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     Section 15.91 Net Working Assets Target.

     “Net Working Assets Target” has the meaning set forth in Section 2.2(a).

     Section 15.92 Net Working Assets of the Business.

     “Net Working Assets of the Business” has the meaning set forth in Section 2.2(a).

     Section 15.93 NLRB Proceedings.

     “NLRB Proceedings” means the proceedings in or arising out of NLRB Cases 8-RD-1976, 6-RD-1518
and 6-RD-1519 (see, e.g., 341 NLRB No. 150).

     Section 15.94 Nonassignable Assets.

     “Nonassignable Assets” has the meaning set forth in Section 10.5(b).

     Section 15.95 Non-Debtor Contracts.

     “Non-Debtor Contracts” has the meaning set forth in Section 1.1(f).

     Section 15.96 Non-Debtor Selling Subsidiaries.

     “Non-Debtor Selling Subsidiaries” means the Selling Subsidiaries that are not Debtors.

     Section 15.97 Non-Union Business Employees.

     “Non-Union Business Employees” has the meaning set forth in Section 10.1(a).

     Section 15.98 Non-Union Transferred Employees.

     “Non-Union Transferred Employees” has the meaning set forth in Section 10.1(d).

     Section 15.99 Operative Documents.

     “Operative Documents” means collectively, this Agreement, the Deposit Agreement, the Bill of
Sale, the Assignment and Assumption Agreement, the Intellectual Property Assignment, the Transition
Agreement, and the Michigan Sublease.

     Section 15.100 Order.

     “Order” means any order, injunction, judgment, decree, ruling, writ, assessment or arbitration
award of (i) any Governmental Body or (ii) the Bankruptcy Court or any other court of competent
jurisdiction over the Cases or over any appeal of an Order entered in the Cases.

     Section 15.101 Other Marked Assets.

     “Other Marked Assets” has the meaning set forth in Section 7.6(c).

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     Section 15.102 Owned Real Property.

     “Owned Real Property” means the real property Related to the Business listed on Schedule
15.102 together with any and all buildings, structures, improvements and fixtures located,
thereon, owned by the Seller or its Subsidiaries.

     Section 15.103 Patents.

     “Patents” means patents, including design patents and utility patents, reissues, divisions,
continuations, continuations-in-part, reexaminations and extensions thereof, in each case including
all applications therefor.

     Section 15.104 Permit.

     “Permit” means any approval, authorization, consent, franchise, license, permit or certificate
by any Governmental Body.

     Section 15.105 Permitted Exceptions.

     “Permitted Exceptions” means the items on Schedule 15.105 and (a) liens for current
Taxes, assessments or other claims by a Governmental Body not yet delinquent or the amount or
validity of which is being contested in good faith by appropriate proceedings or for which an
appropriate reserve or security deposit is established by Seller therefore; (b) mechanics’,
carriers’, workers’, repairers’ and similar Liens arising or incurred in the ordinary course of
business; (c) zoning, subdivision, building code, entitlement and other land use, construction, and
environmental regulations by Governmental Bodies; (d) matters that would be shown or otherwise
reflected by an accurate survey or are shown on the Surveys which do not materially diminish the
value of or materially interfere with the continued use of the Owned Real Property consistent with
past practice; (e) easements of record, rights-of-way of record, licenses of record, leases of
record, utility agreements of record, restrictions of record, and other similar encumbrances of
record; and (f) with respect to the Personal Property only, such other imperfections in title,
charges, easements, restrictions and encumbrances which do not materially diminish the value of or
materially interfere with the continued use of such personal property or asset used in the Business
consistent with past practice.

     Section 15.106 Person.

     “Person” means any individual, corporation, partnership, limited liability company, firm,
joint venture, association, joint-stock company, trust, unincorporated organization, representative
office, branch, Governmental Body or other similar entity.

     Section 15.107 Personal Property Leases.

     “Personal Property Leases” has the meaning set forth in Section 4.9(a).

     Section 15.108 Petition Date.

     “Petition Date” means March 3, 2006.

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     Section 15.109 Post-Closing Tax Period.

     “Post-Closing Tax Period” means any taxable period (or portion thereof) beginning after the
Closing Date.

     Section 15.110 Pre-Closing Tax Period.

     “Pre-Closing Tax Period” means any taxable period (or portion thereof) ending on or before the
Closing Date.

     Section 15.111 Property Taxes.

     “Property Taxes” means real, personal, and intangible ad valorem property Taxes.

     Section 15.112 Purchased Assets.

     “Purchased Assets” has the meaning set forth in Section 1.1.

     Section 15.113 Purchased Debtor Contracts.

     “Purchased Debtor Contracts” has the meaning set forth in Section 6.5(b).

     Section 15.114 Purchased Equipment.

     “Purchased Equipment” has the meaning set forth in Section 1.1(b).

     Section 15.115 Purchased Intellectual Property.

     “Purchased Intellectual Property” has the meaning set forth in Section 1.1(g).

     Section 15.116 Purchaser.

     “Purchaser” has the meaning set forth in the preamble.

     Section 15.117 Purchaser Approved Contract.

     “Purchaser Approved Contract” means each Contract listed or referred to in Schedule
4.11(a) hereto, other than (i) the Real Property Lease for Rochester Hills and (ii) the
Contracts of the Non-Debtor Subsidiaries listed under the headings San Luis Potosi, Mexico Facility
I.

     Section 15.118 Purchaser Closing Documents.

     “Purchaser Closing Documents” has the meaning set forth in Section 5.2.

     Section 15.119 Purchaser Financial Advisor.

     “Purchaser Financial Advisor” has the meaning set forth in Section 5.8.

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     Section 15.120 Purchaser Indemnified Group.

     “Purchaser Indemnified Group” means Purchaser, its Subsidiaries and their respective
Affiliates, together with their successors and assigns, and their officers, directors, employees
and agents.

     Section 15.121 Purchaser Labor Designee.

     “Purchaser Labor Designee” has the meaning set forth in Section 6.2(j).

     Section 15.122  Purchaser Retirement Plans.

     “Purchaser Retirement Plans” has the meaning set forth in Section 10.1(f).

     Section 15.123 Purchaser Upper Sandusky Union Defined Contribution Plan.

     “Purchaser Upper Sandusky Union Defined Contribution Plan” has the meaning set forth in
Section 10.1(e).

     Section 15.124 Purchaser Welfare Plans.

     “Purchaser Welfare Plans” has the meaning set forth in Section 10.1(f).

     Section 15.125 RCRA.

     “RCRA” means the Resource Conservation and Recovery Act, 42 U.S.C. 6901 et. seq.

     Section 15.126 Real Property Leases.

     “Real Property Leases” means the real property leases of Seller or the Selling Subsidiaries
(as tenants or lessees) Related to the Business listed on Schedule 15.126.

     Section 15.127 Registered Intellectual Property

     “Registered Intellectual Property” means: (i) Patents; (ii) registrations and applications for
registration included within Trademarks; (iii) Internet domain names; and (iv) copyright
registrations for copyrightable works and all renewals and pending applications for such copyright
registrations.

     Section 15.128 Related to the Business.

     “Related to the Business” means primarily related to, or used primarily in, the Business as
conducted by Seller and the Selling Subsidiaries as of the date hereof.

     Section 15.129 Release.

     “Release” means any release, spill, emission, leaking, pumping, injection, deposit, disposal,
discharge, dispersal, leaching, or migration at, or from, into or onto the Environment,

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including movement or migration through or in the air, soil, surface water or groundwater,
whether sudden or non-sudden and whether accidental or non-accidental, or any release, emission or
discharge as those terms are defined in any applicable Environmental Law.

     Section 15.130 Remedial Action.

     “Remedial Action” shall mean any action to investigate, evaluate, assess, test, monitor,
remove, respond to, treat, abate, remedy, correct, clean-up or otherwise remediate the release or
presence of any Hazardous Material.

     Section 15.131 Remediation Condition.

     “Remediation Condition” has the meaning set forth in Section 11.5(c).

     Section 15.132 Retention Agreements.

     “Retention Agreements” shall mean the retention agreements between Seller and the Business
Employees as set forth in the agreements listed on Schedule 15.132.

     Section 15.133 Review Period.

     “Review Period” has the meaning set forth in Section 2.2(d).

     Section 15.134 Salaried Business Employees.

     “Salaried Business Employees” has the meaning set forth in Section 10.1(a)(i).

     Section 15.135 Seller.

     “Seller” has the meaning set forth in the preamble.

     Section 15.136 Seller Business Facilities.

     “Seller Business Facilities” means the Rochester Hills, Michigan facility, Wharton, Ohio
facility, Upper Sandusky, Ohio facility, Columbia City, Indiana facility and Pensacola, Florida
facility at which the Business was conducted and the Business Employees were employed by Seller or
any of its Affiliates immediately prior to the Closing Date, and specifically excluding Seller’s
closed facilities at Mitchell, Indiana and Andrews, Indiana at which the Business was previously
conducted.

     Section 15.137 Seller Closing Documents.

     “Seller Closing Documents” has the meaning set forth in Section 4.2.

     Section 15.138 Seller Employee Benefit Plan.

     “Seller Employee Benefit Plan” means any Employee Benefit Plan established, sponsored or
maintained by the Seller or any Affiliate, or any pension plan subject to Title IV of

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ERISA with respect to which Seller or any Affiliate has or has had any obligation, during the
six year period ending on the Closing Date.

     Section 15.139 Seller Financing.

     “Seller Financing” means the post-petition financing facilities or arrangements of the
Debtors.

     Section 15.140 Seller Indemnified Group.

     “Seller Indemnified Group” means Seller, its Subsidiaries and their respective Affiliates,
together with their successors and assigns, and their officers, directors, employees and agents.

     Section 15.141 Seller Name.

     “Seller Name” has the meaning set forth in Section 7.6(a).

     Section 15.142 Seller Portion.

     “Seller Portion” has the meaning set forth in Section 10.1(k).

     Section 15.143 Seller Union Pension Plans.

     “Seller Union Pension Plans” has the meaning set forth in Section 10.1(e).

     Section 15.144 Seller Upper Sandusky Union Defined Contribution Plan.

     “Seller Upper Sandusky Union Defined Contribution Plan” means the Dana Corporation Savings
Works Plan for Collectively Bargained Employees at Certain Facilities (Dana Plan No. 146) in effect
as of the date hereof.

     Section 15.145 Seller Welfare Plans.

     “Seller Welfare Plans” has the meaning set forth in Section 10.2(b).

     Section 15.146 [Intentionally Omitted].

     Section 15.147 Selling Subsidiaries.

     “Selling Subsidiaries” has the meaning set forth in the Recitals.

     Section 15.148 SLP I Real Property Leases.

     “SLP I Real Property Leases” means all Real Property Leases listed on Schedule 15.126,
other than the Real Property Lease for Rochester Hills.

     Section 15.149 Statement of Net Assets.

     “Statement of Net Assets” has the meaning set forth in Section 4.6.

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     Section 15.150 Straddle Period.

     “Straddle Period” means any taxable period beginning on or prior to and ending after the
Closing Date.

     Section 15.151 Subsidiary.

     “Subsidiary” means, with respect to any Person, any other Person of which such Person (either
alone or through or together with any other Subsidiary) owns, directly or indirectly, a majority of
the outstanding equity securities or securities carrying a majority of the voting power in the
election of the board of directors or other governing body of such Person.

     Section 15.152 Surveys.

     “Surveys” means a plat of survey of each parcel of Real Property, dated no earlier than the
date of this Agreement, showing lot lines and monuments; building lines, setback lines; zoning and
land use information pertaining to the Real Property (including any F.A.R. or green space
requirements, and any height restrictions); easements (both burdening and/or benefiting the Real
Property); all other title exceptions of record (to the extent such items can be located by the
surveyor); access locations; utilities (including, but not limited to, water, sewer, gas, electric
and telephone lines to the point of connection with the public systems); other improvements
(including, but not limited to, roads, streets, driveways, and sidewalks); location of water
courses or water bodies; and the square footage of the Real Property. The Surveys shall evidence
whether or not there are any encroachments of improvements from adjoining properties onto the Real
Property or from the Real Property onto adjoining properties. The Surveys shall contain an
accurate flood plain designation. The Surveys shall be certified by a state appropriate registered
land surveyor as having been prepared in compliance with ALTA/ACSM land survey standards, which
certification shall run to the benefit of the Purchaser, First American Title Insurance Company and
any other party or parties designated by Purchaser. The Surveys shall also include any additional
items required by Purchaser.

     Section 15.153 Tax or Taxes.

     “Tax” or “Taxes” means all federal, state, local or foreign taxes, charges, fees, imposts,
levies or other assessments, including all net income, gross receipts, capital, sales, use, ad
valorem, VAT, transfer, franchise, profits, inventory, capital stock, license, withholding,
payroll, employment, social security, unemployment, excise, severance, stamp, occupation, property,
rollback and estimated taxes, customs duties, fees, assessments and other governmental charges of
any kind whatsoever, together with all interest, penalties, fines, additions to tax or additional
amounts imposed by any taxing authority with respect to such amounts.

     Section 15.154 Tax Proceeding.

     “Tax Proceeding” means any audit, examination, contest, litigation or other proceeding by or
against any taxing authority.

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     Section 15.155 Tax Return.

     “Tax Return” means a report, return or other information required to be supplied to a
governmental entity with respect to Taxes (including any amendments and Schedules thereto).

     Section 15.156 Trade Secrets.

     “Trade Secrets” means trade secret business information including ideas, formulas,
compositions, technical documentation, operating manuals and guides, plans, designs, sketches,
inventions, production molds, product specifications, equipment lists, engineering reports and
drawings, architectural and engineering plans, manufacturing and production processes and
techniques; drawings, specifications, plans, proposals, research records, inspection processes
invention records and technical data; financial, marketing and business data, pricing and cost
information, business and marketing plans and customer and supplier lists and information,
licensing records, advertising and promotional materials, service and parts records, warranty
records, maintenance records that have been and are maintained in confidence and that provide a
competitive business advantage.

     Section 15.157 Trademarks.

     “Trademarks” means trademarks, service marks, brand names, logos, certification marks, trade
dress, assumed names and trade names, including all applications for registration therefor,
registrations and all renewals, modifications and extensions thereof and the goodwill associated
with each of the foregoing.

     Section 15.158 Transfer Taxes.

     “Transfer Taxes” has the meaning set forth in Section 14.4.

     Section 15.159 Transferred Employees.

     “Transferred Employees” has the meaning set forth in Section 10.1(d).

     Section 15.160 Transition Agreements.

     “Transition Agreements” has the meaning set forth in Section 6.10.

     Section 15.161 Trigger Level.

     “Trigger Level” has the meaning set forth in Section 11.5(d)

     Section 15.162 [Intentionally Omitted].

     Section 15.163 Union Business Employees

     “Union Business Employees” has the meaning set forth in Section 10.1(a).

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     Section 15.164 Union Transferred Employees.

     “Union Transferred Employees” has the meaning set forth in Section 10.1(d).

     Section 15.165  VAT.

     “VAT” means any value added Tax, goods and services Tax, sales or turnover Tax or similar Tax,
including such Tax as may be imposed by the Sixth Council Directive of the European Communities and
national legislation implementing or supplemental to that directive.

     Section 15.166 WARN ACT.

     “WARN ACT” means the Worker Adjustment and Retraining Notification Act and any other similar
law of any state, locality or other Governmental Body.

     Section 15.167 Other Definitional and Interpretive Provisions.

     (a) This Agreement is the result of the joint efforts of Purchaser and Seller, and each
provision hereof has been subject to the mutual consultation, negotiation and agreement of
the parties and there is to be no construction against either party based on any presumption
of that party’s involvement in the drafting thereof. Any reference to any federal, state,
local, or foreign statute or law shall be deemed also to refer to all rules and regulations
promulgated thereunder, unless the context requires otherwise.

     (b) Unless otherwise specified, the terms “hereof,” “herein,” “hereunder,” “herewith”
and similar terms refer to this Agreement as a whole (including the exhibits, and Schedules
to this Agreement), and references herein to Sections and Articles refer to sections and
articles of this Agreement.

     (c) Whenever used in this Agreement, except as otherwise expressly provided or unless
the context otherwise requires, any noun or pronoun shall be deemed to include the plural as
well as the singular and to cover all genders, and the terms “include” and “including” shall
be inclusive and not exclusive and shall be deemed to be followed by the following phrase
“without limitation.”

     (d) The terms “dollars” and “$” shall mean United States dollars.

     (e) Other terms may be defined elsewhere in the text of this Agreement and, unless
otherwise indicated, shall have such meaning throughout this Agreement.

ARTICLE XVI

MISCELLANEOUS

     Section 16.1 Notices.

     Any notice or demand to be given hereunder shall be in writing and deemed given when
personally delivered, sent by overnight courier or deposited in the mail, postage prepaid, sent

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certified or registered, return receipt requested, and addressed as set forth below or to such
other address as any party shall have previously designated by such a notice. Any notice so
delivered personally shall be deemed to be received on the date of delivery; any notice so sent by
overnight courier shall be deemed to be received on the date received; and any notice so mailed
shall be deemed to be received on the date stamped on the receipt (rejection or other refusal to
accept or inability to deliver because of a change of address of which no notice was given shall be
deemed to be receipt of the notice).

     If to Purchaser:

	 	 	 	 	 
	 

	 	 	 	Coupled Products Acquisition LLC
	 

	 	 	 	88 Airport Road
	 

	 	 	 	Elgin, IL 60123
	 

	 	Attention:
	 	Paul Cumberland
	 

	 	Telephone No.:
	 	(847) 931-4838

     With a copy to:

	 	 	 	 	 
	 

	 	 	 	Sidley Austin LLP
	 

	 	 	 	One South Dearborn
	 

	 	 	 	Chicago, IL 60603
	 

	 	Attention:
	 	John Box
	 

	 	Fax No.:
	 	(312) 853-7036

     If to Seller:

	 	 	 
	 

	 	Dana Corporation
	 

	 	4500 Dorr Street
	 

	 	Toledo, OH 43615
	 

	 	Attention: General Counsel
	 

	 	Telephone No.: (419) 535-4500

     With a copy to:

	 	 	 
	 

	 	Hunton & Williams LLP
	 

	 	Riverfront Plaza, East Tower
	 

	 	951 East Byrd Street
	 

	 	Richmond, VA 23219-4074
	 

	 	Attention: Robert A. Acosta-Lewis, Esq.
	 

	 	Telephone No.: (804) 788-8200

Section 16.2 Amendment; Waiver.

     Any provision of this Agreement may be amended or waived if, and only if, such amendment or
waiver is in writing and signed, in the case of an amendment, by Purchaser and Seller, or in the
case of a waiver, by the party against whom the waiver is to be effective. No

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failure or delay by any party in exercising any right, power or privilege hereunder shall
operate as a waiver thereof nor shall any single or partial exercise thereof preclude any other or
further exercise thereof or the exercise of any other right, power or privilege. The rights and
remedies herein provided shall be cumulative and not exclusive of any rights or remedies provided
by law, except as otherwise expressly provided herein.

     Section 16.3 Assignment.

     (a) No party to this Agreement may assign any of its rights or delegate any of its
obligations under this Agreement without the written consent of the other party hereto and
any purported assignment or delegation without such consent shall be void and of no further
effect; provided, however, that Purchaser shall be entitled to appoint one or more designees
to acquire Purchased Assets from PTG Mexico S. de R.L. de C.V. and PTG Servicios S. de R.L.
de C.V; provided that Purchaser delivers to Seller, on the Closing Date, a
certificate signed on its behalf containing representations and warranties with respect to
each such designee that are similar to those made by Purchaser in Sections 5.1
through 5.5 . Following the Closing, either party may assign any of its rights
hereunder. No assignment or appointment of a designee shall relieve either party of its
obligations hereunder.

     (b) This Agreement shall be binding upon and inure to the benefit of the parties hereto
and their successors and permitted assigns. The successors and permitted assigns hereunder
shall include, in the case of Purchaser, any permitted assignee as well as the successors in
interest to such permitted assignee (whether by merger, liquidation (including successive
mergers or liquidations) or otherwise).

     Section 16.4 Entire Agreement.

     The Schedules and Exhibits attached to this Agreement shall be construed with and as an
integral part of this Agreement to the same extent as if the same had been set forth verbatim
herein. Any matter disclosed by Seller on any one Schedule shall be deemed to have been disclosed
on any other Schedule so long as the relevance of such matter to such other Schedule is reasonably
apparent. This Agreement (together with the Schedules, Exhibits and other agreements referenced
herein) contains, and is intended as, a complete statement of all of the terms and the arrangements
between the parties hereto with respect to the matters provided for herein, and supersedes any
previous agreements and understandings between the parties hereto with respect to those matters.
It shall be expressly understood that this Agreement shall govern the transactions contemplated
hereby as a whole and that any local agreements, instruments, certificates or other documents
entered into or delivered in connection with this Agreement with respect to a particular
jurisdiction shall not be construed as amendments or novations of this Agreement but rather shall
be complemented by and interpreted in light of this Agreement.

     Section 16.5 Fulfillment of Obligations.

     Any obligation of any party to any other party under this Agreement, which obligation is
performed, satisfied or fulfilled by an Affiliate of such party, shall be deemed to have been
performed, satisfied or fulfilled by such party.

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     Section 16.6 Parties in Interest.

     This Agreement shall inure to the benefit of and be binding upon the parties hereto and their
respective successors and permitted assigns.

     Section 16.7 No Third-Party Rights.

     Except as otherwise provided in Sections 10.1, 10.2, 10.3 and
10.4, nothing in this Agreement, express or implied, is intended to confer on any Person
not a party hereto, any rights or remedies by reason of this Agreement. No provision regarding any
Employee Benefit Plan shall be interpreted as a part or amendment thereof.

     Section 16.8 Public Disclosure.

     Notwithstanding anything herein to the contrary, each of the parties to this Agreement hereby
agrees with the other party or parties hereto that the parties shall agree in advance as to the
contents of any press release or other public statement or disclosure with respect to the
transactions contemplated by this Agreement issued through the time of Closing, except as may be
required to comply with the requirements of any applicable Laws and the rules and regulations of
any stock exchange upon which the securities of one of the parties (or its Affiliate) is listed, in
which case such party shall use its reasonable best efforts to consult with the other party before
releasing such information.

     Section 16.9 Confidentiality

     Subject to Section 16.8, the transactions contemplated by this Agreement shall be kept
confidential by Seller, Purchaser and their respective representatives and Affiliates. In the
event that the transactions contemplated by the Agreement are not consummated, Purchaser shall, for
a period of three years following the termination of this Agreement, hold any information obtained
by it from Seller or its Subsidiaries or their Affiliates or representatives in strict confidence
and, without the prior written consent of Seller, shall not use any of such information for any
purpose (except as required by applicable law, regulation or legal process), unless such
information (i) is or becomes generally available to the public other than as a result of a
disclosure by Purchaser or its officers, employees or agents in breach of this Agreement, (ii) was
already known to Purchaser or its officers, employees or agents prior to its disclosure to
Purchaser by or at the request of Seller or its Subsidiaries, (iii) becomes available to Purchaser
on a non-confidential basis from a source other than Seller or its Subsidiaries; provided, however,
that such source is not bound by a confidentiality agreement with Seller or its Subsidiaries or
otherwise prohibited from disclosing such information to Purchaser by a contractual, legal or
fiduciary obligation; (iv) is independently developed by Purchaser or its officers, employees or
agents without any use of or reliance upon disclosure hereunder; or (v) is approved for release by
written authority of Seller. In the event that Purchaser, or any of its Affiliates or
representatives, is required by applicable law, regulation or legal process to disclose any of such
information, Purchaser will notify Seller promptly (unless prohibited by law) so that Seller may
seek an appropriate protective order or other appropriate remedy. In the event that no such
protective order or other remedy is obtained or Seller does not waive compliance with this Section
and Purchaser or any of its representatives are nonetheless legally compelled to disclose such
information, Purchaser

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or its representatives, as the case may be, will furnish only that portion of the information
which Purchaser is, or such representatives are, advised by counsel is legally required to be
furnished and will give Seller written notice (unless prohibited by law) of the information to be
disclosed as far in advance as practicable and exercise all reasonable efforts to obtain reliable
assurance that confidential treatment will be accorded the information.

     Section 16.10 Return of Information.

     If for any reason whatsoever the transactions contemplated by this Agreement are not
consummated, Purchaser shall promptly return to Seller all books, records and other materials
furnished by Seller or any of its agents, employees or representatives (including all copies, if
any, thereof), and shall not use or disclose the information contained in such books, records and
other materials for any purpose or make such information available to any other entity or person.

     Section 16.11 Expenses.

     Subject to Sections 6.6, 13.2 and 14.4, each of the parties hereto shall bear
its own expenses (including fees and disbursements of its counsel, accountants and other experts)
incurred by it in connection with the preparation, negotiation, execution, delivery and performance
hereof, each of the other documents and instruments executed in connection herewith or contemplated
hereby and the consummation of the transactions contemplated hereby and thereby. In addition,
Purchaser shall be solely responsible for all expenses in connection with its due diligence review
of the Business, including without limitation environmental testing or inspections, building
inspections, UCC lien and other searches, the cost of the Surveys, and the premium for issuing the
Endorsements; provided, however, that Seller shall be solely responsible for the cost of title
work, title inspections, title searches and Commitments, as well as the base form title policies
referred to in Section 3.2(j) but not the cost of the Endorsements.

     Section 16.12 Bulk Sales Laws.

     Purchaser hereby waives compliance by Seller and its Subsidiaries with any applicable bulk
sales law. The Non-Debtor Seller agrees to indemnify Purchaser and hold Purchaser harmless from
and against any and all liability under any bulk sales law for the sale of assets by the Non-Debtor
Seller under this Agreement, provided, however, that this indemnity shall not affect the obligation
of Purchaser to pay and discharge the Assumed Liabilities and no indemnity is made under this
Section 16.12 with respect to the Assumed Liabilities.

     Section 16.13 Governing Law.

     This Agreement shall be governed by and construed and enforced in accordance with the laws of
the State of New York, including all matters of construction, validity and performance (including
sections 5-1401 and 5-1402 of the New York General Obligations Law but excluding all other choice
of law and conflict of law rules.)

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     Section 16.14 Submission to Jurisdiction; Selection of Forum.

     Each party hereto agrees that any action or proceeding for any claim arising out of or related
to this Agreement or the transactions contained in or contemplated by this Agreement and the other
Operative Documents, whether in tort or contract or at law or in equity, shall be brought only in
either the Bankruptcy Court, while the Debtors’ Cases are pending, or thereafter, in any other New
York federal court sitting in the City of New York, or in any New York State court sitting in the
Borough of Manhattan in the City of New York(each such court, a “Chosen Court”), and each party
irrevocably (a) submits to the jurisdiction of the Chosen Courts (and of their appropriate
appellate courts), (b) waives any objection to laying venue in any such action or proceeding in
either Chosen Court, (c) waives any objection that such Chosen Court is an inconvenient forum for
the action or proceeding, (d) agrees that, in addition to other methods of service provided by law,
to the fullest extent provided by applicable law service of process in any such action or
proceeding shall be effective if provided in accordance with Section 16.1 of this
Agreement, and the effective date of such service of process shall be as set forth in Section
16.1, and (e) agrees that a final judgment in any such action or proceeding shall be conclusive
and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided
by law.

     Section 16.15 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.

     Section 16.16 Headings.

     The heading references herein and the table of contents hereto are for convenience purposes
only, do not constitute a part of this Agreement and shall not be deemed to limit or affect any of
the provisions hereof.

     Section 16.17 Severability.

     The provisions of this Agreement shall be deemed severable and the invalidity or
unenforceability of any provision shall not affect the validity or enforceability of the other
provisions hereof. If any provision of this Agreement, or the application thereof to any Person or
any circumstance, is invalid or unenforceable, (a) a suitable and equitable provision shall be
substituted therefor in order to carry out, so far as may be valid and enforceable, the intent and
purpose of such invalid or unenforceable provision and (b) the remainder of this Agreement and the
application of such provision to other Persons or circumstances shall not be affected by such
invalidity or unenforceability, nor shall such invalidity or unenforceability affect the validity
or enforceability of such provision, or the application thereof, in any other jurisdiction.

[SIGNATURE PAGE FOLLOWS]

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     IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date and year
first above written.

	 	 	 	 	 
	 	COUPLED PRODUCTS ACQUISITION LLC

 	 
	 	By:  	/s/ Paul J. Cumberland
 	 
	 	 	Name:  	Paul J. Cumberland 	 
	 	 	Title:  	Managing 	 
	 
	 	DANA CORPORATION

 	 
	 	By:  	/s/ E. P. Haag
 	 
	 	 	Name:  	Eric P. Haag 	 
	 	 	Title:  	Manager, Corporate Development 	 
	 

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