Document:

EX-10(O)(2)

 

Exhibit 10-O(2)

Amendment To The

Equity Joint Venture Contract

DONGFENG MOTOR CO., LTD.

and

DONGFENG (SHIYAN) INDUSTRIAL COMPANY

and

DONGFENG MOTOR CORPORATION

and

DANA MAURITIUS LIMITED

 

 

This AMENDMENT TO THE EQUITY JOINT VENTURE CONTRACT (hereinafter referred to as this
Amendment) is entered into on this 14th day of March 2007, in Shanghai, People’s
Republic of China (hereinafter referred to as PRC), in accordance with the Joint Venture Law, the
Joint Venture Regulations and other relevant laws and regulations of the PRC, by and between:

	(1)	 	DONGFENG MOTOR CO., LTD. (hereinafter DFL), a Sino-foreign equity joint venture with limited
liability duly organized and validly existing under the laws of the PRC with its legal address
at 84 Baiye Road, Wuhan Economic Development Zone, Wuhan City, Hubei Province, PRC;
	 
	(2)	 	DONGFENG (SHIYAN) INDUSTRIAL COMPANY (hereinafter Dongfeng Industry ), a company with limited
liability duly established and validly existing under the laws of the PRC whose registered
address is at No. 66 Gongyuan Road, Shiyan, Hubei Province, PRC;
	 
	(3)	 	DONGFENG MOTOR CORPORATION (hereinafter DFM), a state-owned enterprise with limited liability
duly established and validly existing under the laws of the PRC whose registered address is at
No. 1 Checheng Road, Shiyan, Hubei Province, PRC; and
	 
	(4)	 	DANA MAURITIUS LIMITED (hereinafter DANA), a one hundred percent (100%) wholly owned
subsidiary of DANA CORPORATION with limited liability established and validly existing under
the laws of the Republic of Mauritius, with its legal address at Level 6, One Cathedral
Square, Pope Hennessy Street, Port Louis, Mauritius.

Each of the parties shall be referred to as a “Party” and collectively referred to as the
“Parties”.

RECITALS:

	(A)	 	DONGFENG AXLE CO., LTD. (hereinafter referred to as DAC) is a limited liability company
incorporated in accordance with the laws of the PRC, whose original shareholders were DFL,
Dongfeng Industry and DFM.
	 
	(B)	 	DFL and DANA CORPORATION entered into a Letter of Intent on September 24th, 2003,
pursuant to which DFL and DANA CORPORATION agree to set up an equity joint venture company
(hereinafter referred to as JVC) in Xiangfan Municipality, Hubei Province, PRC.
	 
	(C)	 	DFL and DANA CORPORATION agree that the investment of DANA CORPORATION in the JVC will be
carried out by DANA.
	 
	(D)	 	DFL and DANA entered into a joint venture contract (hereinafter referred to as the JV
Contract), pursuant to which the JVC will be established based on DAC as a Sino-foreign equity
joint venture, in which DFL and DANA would each hold a fifty percent (50%) equity interest.
	 
	(E)	 	DFL and DANA entered into a partial closing agreement (hereinafter referred to as the PCA),
pursuant to which DANA will purchase a 4% equity interest in the JVC by DFL for RMB 38,800,000
instead of holding a 50% equity interest as contemplated under the JV Contract.
	 
	(F)	 	Upon further discussions between DFL, DANA, Dongfeng Industry and DFM, the Parties have
agreed to jointly carry out the JVC’s business activities in accordance with the terms and
conditions of this Amendment which amended and restated the JV Contract, adhering to the
principles of equality and mutual benefit.

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TERMS AGREED:

	1.	 	Definitions and Interpretation
	 
	1.1	 	Unless the context otherwise requires, the defined words and expressions used in this
Amendment shall have the same meanings as those used in the JV Contract.
	 
	1.2	 	Headings are inserted for convenience only and shall not affect the construction of this
Amendment.
	 
	2.	 	Effect on the JV Contract
	 
	2.1	 	The JV Contract shall be amended as set out in Article 3 below. Any reference to an article
in the JV Contract shall, unless the context otherwise requires, be construed as a reference
to such an article as the same has been amended or supplemented pursuant to this Amendment, or
may otherwise have been, or from time to time be, amended, supplemented or novated.
	 
	2.2	 	This Amendment is supplemental to and shall be construed as forming part of the JV Contract.
	 
	2.3	 	Save as otherwise expressly provided in this Amendment, the JV Contract shall continue in
full force and effect in accordance with its terms. Nothing in this Amendment shall effect
either Party’s liabilities under or in connection with the JV Contract which have accrued
prior to the effectiveness of this Amendment.
	 
	3.	 	Amendment to the JV Contract
	 
	3.1	 	The following four (4) definitions shall be inserted in Article 1 “DEFINITION”:
	 
	 	 	Agreement means the Partial Closing Agreement entered into by and among DFL, Dongfeng
Industry, DFM and Dana on even date herewith pursuant to which the purchase by Dana from DFL
of the 4% equity interest in DAC will be completed.
	 
	 	 	Completion Date shall have the meaning as defined in the Agreement.
	 
	 	 	DONGFENG means DFL, Dongfeng Industry and DFM collectively, jointly and severally.
	 
	 	 	Interim Period means the three (3) year time period starting from the date on which the
JVC’s new business license has been issued.
	 
	3.2	 	The definition for “Articles of Association” shall be revised and replaced with the
following:
	 
	 	 	“Articles of Association means the Articles of Association of the JVC signed by the Parties
as of the date of execution of the JV Contract, together with the amendment to the Articles
of Association and any supplement and amendment made thereto from time to time.”
	 
	3.3	 	The definition for “Contract” shall be revised and replaced with the following:
	 
	 	 	“Contract means the Joint Venture Contract, together with its amendment and any supplement
and amendment made thereto from time to time.”
	 
	3.4	 	The definition for “Delegates” shall be revised and replaced with the following:

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	 	 	“Delegates mean the General Manager, the Executive Deputy General Manger and the Deputy
General Managers delegated to the JVC by either Party or other management and technical
personnel to be delegated to the JVC upon agreement by the Parties.”
	 
	3.5	 	The word “means” in the definition “Commercial Vehicles” and “Deputy General Manager and
Deputy General Managers” shall be deleted and replaced with “mean”.
	 
	3.6	 	The definition for “Party” and “Parties” shall be revised and replaced with the following:
	 
	 	 	“Party means DONGFENG (or DFL, Dongfeng Industry or DFM individually, as the case may be) or
DANA individually; and Parties means DONGFENG and DANA collectively.”
	 
	3.7	 	The definition for “SPA” shall be revised and replaced with the following:
	 
	 	 	“SPA means the Sale and Purchase Agreement for the acquisition by Dana of an aggregate fifty
percent (50%) of the registered capital of Dongfeng Axle Co., Ltd. entered into among DFL,
Dongfeng Industry, DFM and Dana and dated March 10, 2005 as supplemented by the Agreement.”
	 
	3.8	 	Article 2.1 “Chinese Party” shall be revised and replaced with the following:
	 
	 	 	“The Chinese parties to this Contract are:

	 	(a)	 	Dongfeng Motor Co., Ltd. (DFL)
	 
	 	 	 	Dongfeng Motor Co., Ltd. or [Chinese characters] in Chinese is a Sino-foreign equity
joint venture with limited liability duly organized and validly existing under the
laws of the PRC with its legal address at 84 Baiye Road, Wuhan Economic Development
Zone, Wuhan City, Hubei Province, PRC. The legal representative of DFL is:

	 	 	 	 	 
	 

	 	Name:
	 	XU PING
	 

	 	Position:
	 	Chairman of the Board
	 

	 	Nationality:
	 	Chinese

	 	(b)	 	Dongfeng (Shiyan) Industrial Company (Dongfeng Industry)
	 
	 	 	 	Dongfeng (Shiyan) Industrial Company or [Chinese characters] in Chinese is a company
with limited liability duly established and validly existing under the laws of the
PRC whose registered address is at No. 66 Gongyuan Road, Shiyan, Hubei Province, PRC.
The legal representative of Dongfeng Industry is:

	 	 	 	 	 
	 

	 	Name:
	 	LI ZHENHUA
	 

	 	Position:
	 	Chairman of the Board
	 

	 	Nationality:
	 	Chinese

	 	(c)	 	Dongfeng Motor Corporation (DFM)

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	 	 	 	Dongfeng Motor Corporation or [Chinese characters] in Chinese is a state-owned
enterprise with limited liability duly established and validly existing under the
laws of the PRC whose registered address is at No. 1 Checheng Road, Shiyan, Hubei
Province, PRC. The legal representative of DFM is:

	 	 	 	 	 
	 

	 	Name:
	 	XU PING
	 

	 	Position:
	 	General Manager
	 

	 	Nationality:
	 	Chinese”

	3.9	 	In Article 2.2, the name of “Robert E. Pollock” shall be deleted and replaced with “Phillip
A. Rotman II”.
	 
	3.10	 	The second sentence of Article 3.1 shall be revised and replaced with the following:
	 
	 	 	“The JVC shall be deemed to be duly established on the date set forth in the JVC’s new
business license issued by the SAIC (the Establishment Date) evidencing that DFL, Dongfeng
Industry, DFM and Dana each holding a seventy-five and 23/100 percent (75.23%), ten and
96/100 percent (10.96%), nine and 81/100 (9.81%) and four percent (4%) equity interest in
the JVC respectively.”
	 
	3.11	 	References to “DFL” in Article 19.1, Article 19.5, Article 19.6 and section (ii) of Article
27.5(b) shall be deleted and replaced with “DONGFENG”.
	 
	3.12	 	The third sentence of Article 3.3 shall be revised and replaced with the following:
	 
	 	 	“The Parties, including Dongfeng Industry and DFM, shall share the profits and, subject to
the above, bear the risks and losses in accordance with the ratio of their capital
contributions as set out in Article 5.2.”
	 
	3.13	 	Section (iii) of Article 4.2(b) shall be revised and replaced with “pusher and tag”.
	 
	3.14	 	Article 5.1 shall be revised and replaced with the following:
	 
	 	 	“The total investment amount of the JVC shall be Renminbi Seven Hundred and Eighty Million
(RMB780,000,000).”
	 
	3.15	 	Article 5.2 shall be revised and replaced with the following:
	 
	 	 	“The registered capital of the JVC shall be Renminbi Five Hundred Million (RMB500,000,000),
of which DFL shall contribute Renminbi Three Hundred Seventy Six Million and One Hundred
Fifty Thousand (RMB376,150,000) accounting for seventy five and 23/100 percent (75.23%),
Dongfeng Industry shall contribute Renminbi Fifty Four Million and Eight Hundred Thousand
(RMB54,800,000) accounting for ten and 96/100 percent (10.96%), DFM shall contribute
Renminbi Forty Nine Million and Fifty Thousand (RMB49,050,000) accounting for nine and
81/100 percent (9.81%), and DANA shall contribute Renminbi Twenty Million (RMB20,000,000)
accounting for four percent (4.00%).”
	 
	3.16	 	Article 5.3 shall be revised and replaced with the following:

	 	“(a) 	 	DFL shall contribute to the JVC seventy five and 23/100 percent (75.23%) of the
registered capital of DAC, which has been subscribed and fully paid up by it as of the
date hereof, representing seventy five and 23/100 percent (75.23%) of the

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	 	 	 	registered capital of the JVC.
	 
	 	(b)	 	Dongfeng Industry shall contribute to the JVC ten and 96/100 percent (10.96%)
of the registered capital of DAC, which has been subscribed and fully paid up by it as
of the date hereof, representing ten and 96/100 percent (10.96%) of the registered
capital of the JVC.
	 
	 	(c)	 	DFM shall contribute to the JVC nine and 81/100 percent (9.81%) of the
registered capital of DAC, which has been subscribed and fully paid up by it as of the
date hereof, representing nine and 81/100 percent (9.81%) of the registered capital of
the JVC.
	 
	 	(d)	 	DANA shall contribute to the JVC four percent (4.00%) of the registered capital
of DAC, which DANA has acquired from DFL pursuant to the SPA (as supplemented by the
Agreement) and which has been subscribed and fully paid up by DFL as of the date
hereof, representing four percent (4.00%) of the registered capital of the JVC.”

	3.17	 	The figure “50%” in Article 5.4(b) shall revised and replaced with “4.00%”.
	 
	 	 	In the second paragraph, the word “the” before “DFL Representations and Warranties” shall be
deleted.
	 
	3.18	 	Article 5.5 shall be revised and replaced with the following:
	 
	 	 	“The obligations of DFL, Dongfeng Industry and DFM with respect to their respective capital
contributions to the JVC shall be deemed fully discharged on the Completion Date. DANA’s
obligation with respect to its capital contributions to the JVC shall be deemed fully
discharged on the date which DANA has made full payment for the 4% equity interest in DAC in
accordance with the terms and conditions of the Agreement.”
	 
	3.19	 	Section (ii) and (iii) of Article 5.6 (c) shall be revised and replaced with the following:

	 	“(ii)	 	 Prior to the Completion Date, DANA and DFL will, based on recommendation from
DANA’s and DFL’s financial team, set the targets for additional funding from the
Parties for the first 2 years after the JVC’s new business license has been issued;
	 
	 	(iii)	 	Once the Board has decided that additional funding from the Parties are
required, Dana and DFL shall provide funding to the JVC up to their pro rata shares of
the aforesaid target by any of the following options (A) a shareholder loan to the
JVC, (B) a parent guarantee supporting JVC’s borrowing from any banks or financial
institutions, or (C) a standby letter of credit.”

	3.20	 	Article 5.7 (a) shall be revised and replaced with the following:
	 
	 	 	“Subject to the provisions of this Article 5.7, either Party may assign, sell or otherwise
dispose of all or part of its registered capital contribution to the JVC to a third party,
provided, however, that it first obtains the written consent of the other Party and the
approval of the Approval Authority if required. “
	 
	3.21	 	The following paragraph shall be inserted as Article 5.7(f):
	 
	 	 	“Notwithstanding any provisions to the contrary, neither Dongfeng Industry nor DFM shall

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	 	transfer its corresponding equity interest in the registered capital of the JVC, in whole or
in part, to any third party other than an Affiliate.”

	3.22	 	The following paragraph shall be inserted as Article 5.8(b):
	 
	 	 	“For the purposes of this Article 5.8 and only during the Interim Period, an Affiliate, in
relation to either Dongfeng Industry or DFM, shall mean DFL only.”
	 
	3.23	 	The phrase “or by the Chairman alone during the Interim Period,” shall be inserted after the
wording “Vice-Chairman of the Board” in the second sentence of Article 5.9.
	 
	3.24	 	Section (iv) of Article 5.11 (a) shall be deleted and the sequencing of the original section
(v) to (xi) of Article 5.11 (a) shall be adjusted accordingly.
	 
	3.25	 	The following shall be inserted as Article 5.11 (b):
	 
	 	 	“All of the Ancillary Contracts mentioned above have been executed on the same date this
Amendment is signed.”
	 
	3.26	 	The original Article 5.11 (b) shall become Article 5.11 (c).
	 
	3.27	 	The following paragraph shall be inserted as Article 5.12:
	 
	 	 	“5.12 Purchase of an Additional 46% Equity Interest in the JVC
	 
	 	 	Provided that Dana acquired the 4% equity interest from DFL prior to 30 June 2007, after
April 1, 2008 but within the Interim Period, Dana will purchase, and DFL, Dongfeng Industry
and DFM will sell in one lump sum an additional 46% equity interest in the JVC (the
Additional Equity Interest), which is composed of a 25.23% equity interest in the JVC held
by DFL, a 10.96% equity interest in the JVC held by Dongfeng Industry, and a 9.81% equity
interest in the JVC held by DFM, if all of the following events have occurred:

	 	(a)	 	The Additional Equity Interest will be free and clear from any Encumbrance (as
defined in the SPA);
	 
	 	(b)	 	All of the requisite PRC governmental approvals and/or legal procedures for the
purchase by Dana of the Additional Equity Interest from DFL, Dongfeng Industry and DFM
have been obtained and/or completed;
	 
	 	(c)	 	The appraised value of the Additional Equity Interest is within 18% plus or
minus of RMB 446,200,000. Otherwise, the Parties will discuss and find a solution that
will be mutually acceptable to the Parties.
	 
	 	(d)	 	Both the income method and the replacement cost method will be used to appraise
the value of the Additional Equity Interest. Subject to Article 5.12(C) above, the
higher value derived from the appraisal using either of these two methods will be the
transaction price for the Additional Equity Interest.

	 	 	At the completion of the purchase by Dana of the Additional Equity Interest as set out in
this Article 5.12, this Contract shall be further amended to incorporate all of the original
terms and conditions of the JV Contract, which have been amended by this Contract, to
reflect the then 50:50 equity ratio of the Parties in the JVC. The Parties shall then
execute the Final Closing Agreement in accordance with the terms and conditions set forth in
the Schedule 1 attached hereto and take all necessary actions to obtain approvals and give
effect thereto.”

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**** indicates where a confidential portion has been omitted

and filed separately with the Securities and Exchange Commission

	3.28	 	The wording “new” shall be inserted before the wording “business license” in Section
(iii) of Article 6.1 (a).
	 
	3.29	 	Article 6.1 (h) shall be revised and replaced with the following:
	 
	 	 	“assist expatriate personnel of DANA CORPORATION or its Affiliates and the JVC in handling
the necessary procedures for entry visas, work permits and travelling arrangements, and to
assist the JVC in arranging appropriate housing for expatriate employees of the JVC, and
hotel accommodations for foreign personnel on temporary assignment to the JVC;”
	 
	3.30	 	The wording “traveling” in Article 6.2 (f) shall be revised and replaces with “travelling”.
	 
	3.31	 	The last sentence of Article 8.6(b) shall be revised and replaced with the following:
	 
	 	 	“DFL shall remain liable for any and all asbestos claims until ten (10) years after January
1, 2006, after which date DFL shall no longer be liable therefor.”
	 
	3.32	 	Article 9.1 shall be revised and replaced with the following:
	 
	 	 	“DFL shall purchase from the JVC and cause its Affiliates to purchase from the JVC subject
to QCDD the Commercial Vehicle, specialty vehicle and light vehicle axle products required
by them and which the JVC can supply, **** .”
	 
	3.33	 	The wording “in the same matter as what the JVC has agreed under the Long Term Supply
Agreement” in Article 9.2(b) shall be deleted.
	 
	3.34	 	Article 9.2(f) shall be deleted.
	 
	3.35	 	Article 9.6 (a) shall be revised and replaced with the following:
	 
	 	 	“Both DANA and DFL undertake that, as soon as the JVC has been established, the JVC shall
start to establish a R&D Center for the Products (the R&D Center), which belongs to the JVC
and will be independent of the Parties.”
	 
	3.36	 	Article 9.6 (e) shall be revised and replaced with the following:

	 	“(e)	 	 Both DANA and DFL confirm the target dates for the establishment of the R&D
Center in stages as follows:

	 	(i)	 	Within 2 years after the Completion Date, all initial hardware of
the R&D Center shall be set up; initial staffing shall be completed; and the R&D
Center shall be operational;
	 
	 	(ii)	 	By 2012, the basic functions of the R&D Center shall be
established; the focus of the R&D Center shall be to ensure that the Products
are competitive in the PRC market;
	 
	 	(iii)	 	Following 2012, the R&D Center shall endeavor to become the
industrial leader with regard to the technical aspects of the Products. ”

	3.37	 	The wording “Parties” in Article 9.6 (f) shall be revised and replaced with “DANA and DFL”.
	 
	3.38	 	The first sentence of Article 9.11 shall be revised and replaced with the following:

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	 	 	“The JVC board will periodically review the progress of DANA CORPORATION in meeting its
objectives and obligations of providing technology, technical support, and other support in
connection with the JVC’s establishment of the R&D Center, in accordance with the provisions
of this Contract, the Technology License Contract and Technical Assistance Contract.”

	3.39	 	The wording “thirty” in Article 10.5 (c) shall be deleted and replaced with “third”.
	 
	3.40	 	Article 11.1 shall be revised and replaced with the following:
	 
	 	 	“During the Interim Period, the composition of the Board shall be based on the second
paragraph of Article 11.2(a) below.”
	 
	3.41	 	The following shall be inserted as the second paragraph of Article 11.2 (a):
	 
	 	 	“Notwithstanding any provisions to the contrary in the preceding paragraph, during the
Interim Period:

	 	(i)	 	The Board shall consist of eight (8) directors, among which, four (4)
directors, including the Chairman, shall be appointed by DFL, one (1) director shall be
appointed by Dongfeng Industry, one (1) director shall be appointed by DFM and the
other two (2) directors shall be appointed by Dana; and
	 
	 	(ii)	 	the JVC will not establish the position of Vice Chairman.”

	3.42	 	The following sentences shall be inserted after Section (v) of Article 11.3(a):

	 	“(vi)	 	 change or amend the profit distribution policy set forth in Article 16.7; and
	 
	 	(vii)	 	any investment in any other company.”

	3.43	 	In Article 11.3(c), section (ix) shall be deleted; section (xvii) shall be deleted and
replaced with the following:

	 	“(xviii)	 	 the matter set out in Article 9.11 above;”

	 	 	The sequencing of the original Section (x) to (xvi) of Article 11.3(c) shall be adjusted
accordingly.

	3.44	 	The following shall be inserted as the last paragraph of Article 11.3:
	 
	 	 	“Notwithstanding any provisions to the contrary, during the Interim Period, decisions of the
Board involving the aforementioned matters set out in this Article 11.3(c) above shall
require the approval of a simple majority of all members of the Board present at the meeting
(in person or by proxy).”
	 
	3.45	 	Article 11.4(b) shall be revised and replaced with:
	 
	 	 	“If the Chairman grants authorization or is unable to perform his or her responsibilities
due to health reasons only, the Vice Chairman, or, during the Interim Period, a director
authorized by the Chairman, may act in his or her place to perform his or her
responsibilities.”
	 
	3.46	 	The phrase “with at least one (1) director from DFL and Dana respectively” shall be inserted
in Article 11.5 (b) after the wording “Board directors”.

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	3.47	 	Section (iv) of Article 11.5(c) shall be revised and replaced with the following:
	 
	 	 	“each director, including the Chairman and Vice-Chairman (if such a position has been
established), shall have only one (1) vote with no deciding vote in case of a tie.”
	 
	3.48	 	Article 11.5(d) shall be revised and replaced with the following:
	 
	 	 	“Upon the written request of three (3) or more directors (which shall specify the matters to
be discussed), the Chairman (or the Vice Chairman, or, during the Interim Period, a director
authorized by the Chairman, if the Chairman grants authorization or is unable to perform his
or her responsibilities due to health reasons only) shall convene an interim meeting of the
Board within three (3) months of the written request for such interim meeting.”
	 
	3.49	 	Article 11.5(e) shall be revised and replaced with:
	 
	 	 	“If the Chairman of the Board does not call a meeting according to Articles 11.4(a) and
11.5(d), the Vice-Chairman or, during the Interim Period, a director authorized by the
Chairman, shall be entitled to call and preside over the Board meeting.”
	 
	3.50	 	The first sentence of Article 11.5(k) shall be revised and replaced with:
	 
	 	 	“If at any properly convened Board meeting, no quorum is constituted because less than six
(6) directors are present in person or by proxy or because no director appointed by DFL or
Dana is present in person or by proxy, the directors present at this Board meeting (Original
Board Meeting) shall call a second Board meeting (Second Board Meeting).”
	 
	3.51	 	The phrase “(if such a position has been established)” shall be inserted both in the second
sentence of Article 11.5 (m) and in the last sentence of Article 11.5 (p) after the wording
“Vice-Chairman”.
	 
	3.52	 	The following shall be inserted as the last sentence of Article 12.1(a):
	 
	 	 	“As a general matter, neither Dongfeng Industry nor DFM will be involved in the daily
management and operations of the JVC.”
	 
	3.53	 	The wording “advices” in the section (i) of Article 12.1(c) shall be deleted and replaced
with “advice”.
	 
	3.54	 	The following shall be inserted as the last paragraph of the section(ii) of Article 12.1(d):
	 
	 	 	“Notwithstanding any provisions to the contrary, during the Interim Period:
	 
	 	 	- if the Board deems it necessary to engage a Deputy General Manager in charge of finance,
DFL will have the right to nominate the candidate for such a position to be approved and
appointed by the Board as provided in the Amendment to the Contract. The Parties acknowledge
and agree that the performances of both the current General Manager and the current Deputy
General Manager in charge of engineering have been satisfactory for the past year. As such,
the Parties agree that, during the Interim Period, the current General Manager and the
current Deputy General Manager will be engaged to continue perform their respective roles as
the General Manager and Deputy General Manager in charge of engineering of the Company so
long as their respective
	 
	 	 	performance remains reasonably satisfactory to the Parties.
	 
	 	 	- if the General Manager or the Deputy General Manager in charge of engineering could no

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**** indicates where a confidential portion has been omitted

and filed separately with the Securities and Exchange Commission

	 	 	longer serve the Company due to any reason, DANA and DFL agree to communicate with each
other to work together to agree on the nomination of the replacement candidate for
appointment by the Board.”
	 
	3.55	 	The phrase “(if such a position has been established)” shall be inserted in Article 12.1 (g)
after the wording “Vice-Chairman”.
	 
	3.56	 	The wording “the” shall be inserted in the first sentence of Article 15.2(b) after the
wording “as of”.
	 
	3.57	 	The wording “DANA CORPORTION” in the last sentence of Article 16.3(b) shall be replaced with
“DANA CORPORATION’S”.
	 
	3.58	 	The following shall be inserted as Article 16.3(e):
	 
	 	 	“During the Interim Period, Dongfeng Industry and DFM shall have full access to monthly
operational reports, quarterly financial reports, audited financial reports and such other
reports to be prepared by the management of the JVC and distributed to DFL and DANA.”
	 
	3.59	 	The wording “oversees” in the second sentence of Article 16.4 shall be deleted and replaced
with “oversee”.
	 
	3.60	 	Article 16.5(a) shall be revised and replaced with the following:

	 	“(a)	 	 The Board will consult with all parties, including DFM and Dongfeng Industry,
regarding the engagement of an internationally recognized and PRC qualified accounting
firm to be the JVC’s auditor and to examine and verify the JVC’s financial accounting
prior to engagement of such auditor, and after this consultation will engage such
auditor. The scope of audit performed by the JVC’s auditor will comply with Chinese
GAAP. The auditor will prepare a separate report complying with the US GAAP which is
converted from the report complying Chinese GAAP. The results of the auditor’s
examination will be reported to the Board and the General Manager. The JVC shall
submit to the Parties (including Dongfeng Industry and DFM during the Interim Period)
and to each director the audited annual accounts within the shortest time period
practicable after the end of the fiscal year (subject to the stipulated time table for
issuing the audit report by the auditor jointly engaged by the Parties), together with
the audit report of the auditor. All Parties (including Dongfeng Industry and DFM
during the Interim Period) will be provided with the first draft of the report and
shall have the right to communicate with the auditor in relation to such report. The
JVC shall pay the cost of the audit.”

	3.61	 	The wording “(including Dongfeng Industry and DFM during the Interim Period)” shall be
inserted after the wording “Party” in the first sentence of Article 16.5(b).
	 
	3.62	 	The following shall be inserted as Article 16.6(C):
	 
	 	 	“Notwithstanding the above provisions, during the Interim Period, the JVC will not allocate
the reserve fund and the enterprise development fund.”
	 
	3.63	 	Article 16.7(a) shall be revised and replaced with the following:
	 
	 	 	“ ****

11

 

**** indicates where a confidential portion has been omitted

and filed separately with the Securities and Exchange Commission

	****	 	”

	3.64	 	Article 16.7(b) shall be revised and replaced with the following:

	 	“(i)	 	 ****
	 
	 	(ii)	 	****
	 
	 	(iii)	 	**** ”

	3.65	 	The first paragraph of Article 16.7(f) shall be revised and replaced with the following:

	 	 	“Distributable profits shall be calculated in RMB. The JVC shall pay DFL, Dongfeng Industry
and DFM any dividend to be distributed to them in RMB and shall pay DANA any dividend to be
distributed to DANA in US$. The JVC shall, at the request of DANA, convert any RMB dividend
to be distributed to DANA into US$ and remit the same out of China in accordance with the
then applicable regulations governing the payment of foreign exchange.”
	 
	3.66	 	The last sentence of Article 16.8(c) shall be revised and replaced with the following:
	 
	 	 	“For the avoidance of doubt, any payment by DFL to the JVC for the purchase of any axle
products shall be made in accordance with the current practice applied by the Parties at the
time of signing this Contract.”
	 
	3.67	 	The first sentence of Article 17.2(b) shall be revised and replaced with the following:
	 
	 	 	“Unless otherwise specified in this Contract or in contracts entered into by the JVC, all
payments by the JVC to DANA or DANA CORPORATION and to any expatriate employees of the JVC
shall be made in US$, or in another freely convertible currency as DANA or DANA CORPORATION
or such expatriate employees may determine, and all payments by the JVC to DFL, Dongfeng
Industry and DFM as well as to PRC enterprises or nationals shall be made in RMB.”

12

 

	3.68	 	Article 19.1 shall be revised and replaced with the following:
	 
	 	 	“19.1 Representations and Warranties of DONGFENG
	 
	 	 	Each of DFL, Dongfeng Industry and DFM represents and warrants the following:

	 	(a)	 	It is a limited liability company duly established and validly existing as a
legal person under the laws of the PRC;
	 
	 	(b)	 	It has full legal right, power and authority to execute this Contract and all
contracts and documents referred to in this Contract to which it is a party, and to
observe and perform its obligations under this Contract and those contracts and
documents;
	 
	 	(c)	 	It’s representative whose signature is affixed hereto and to all contracts and
documents referred to in this Contract to which it is a party, has been fully
authorized to sign this Contract and those contracts and documents pursuant to a valid
power of attorney, a copy of which has been provided to DANA; and
	 
	 	(d)	 	It has obtained all consents, approvals, authorizations and taken all other
actions necessary to validly execute this Contract and all of the contracts and
documents referred to in this Contract to which it is a party and to observe and
perform its obligations under this Contract and those contracts and documents. “

	3.69	 	The wording “amended” in shall be deleted and replaced with “new” in Article 22.1(a).
	 
	3.70	 	The phrase “(except as otherwise disclosed by a Party to the other Party at the time of
entering into this Amendment)” shall be inserted in Article 23.1(d) after the wording
“bankrupt”.
	 
	3.71	 	The following shall be inserted as Article 23.3(b):

	 	“(b)	 	 In the event that the acquisition by Dana of the Additional Equity Interest
fails to be implemented in accordance with the provisions of Article 5.12 above, DFL
has the right to determine whether to buy out the 4% equity interest held by Dana. The
price for such buy-out of the equity interest by DFL shall be an amount equal to the
price that DANA paid to DFL to purchase such 4% equity interest. The Parties undertake
that the Parties will take all necessary actions to make sure that such buy out of the
4% equity interest by DFL will be completed within sixty (60) days after DFL makes such
decision.
	 
	 	 	 	If DFL decides not to buy out such equity interest and DANA continues to hold a 4%
equity interest in the JVC, the JVC shall continue to receive a license from DANA to
use the technology and know-how licensed under the Technology and Know-How License
Contract and pay royalties in accordance with the terms and conditions thereunder,
provided that such a license shall be on a non-exclusive basis.
	 
	 	 	 	If DFL decides to buy out such equity interest and DANA no longer holds a 4% equity
interest in the JVC, the principles outlined in Article 23.3(a) above shall apply to
the basis on which the JVC or the Successor to the JVC may continue to use the
technology and know-how licensed under the Technology and Know-How License Contract
in accordance with the terms and conditions thereunder, provided that such a license
shall be on a non-exclusive basis. Under this circumstance, the

13

 

	 	 	 	JVC or the Successor to the JVC shall only pay royalties for the “Licensed
Product” during the Interim Period pursuant to the Technology and Know-How License
Contract. For the “Other Products” defined in the Technology and Know-How License
Contract, the JVC or the Successor to the JVC shall not be liable to pay any
royalties. To the extent that any such royalty has been paid in relation to the Other
Products, the Parties shall procure its refund.
	 
	 	 	 	Regardless of whether DFL buys out the equity interest held by Dana in accordance
with this Article, the Parties shall amend the relevant documents on the basis of
this Article and take necessary actions to give effect to such amendment.”

	3.72	 	The reference to “(b)(i) and (b)(ii)” in the last paragraph of Article 23.3 shall be revised
and replaced with “(a)(i) and (a)(ii)”.
	 
	3.73	 	Section (iii) of Article 27.4(a) shall be deleted and the sequencing of the original section
(iv) to (vi) of Article 27.4(a) shall be adjusted accordingly.
	 
	3.74	 	Article 27.5(b) shall be revised and replaced with the following:
	 
	 	 	“DFL may assign its rights and responsibilities under this Contract and any agreements
entered into pursuant to this Contract to subsidiary of DFL (DFL Assignee) in which DFL has
at least a fifty-one percent equity interest and full management control, provided that DFL
guarantees the faithful performance of DFL Assignee of all terms of the assigned contract
and agreements.”
	 
	3.75	 	The following shall be inserted as Article 27.5(c):
	 
	 	 	“Dongfeng Industry and DFM may assign their respective rights and responsibilities under
this Contract and any agreements entered into pursuant to this Contract to DFL only and not
to any other party.”
	 
	3.76	 	Article 29(a) shall be revised and replaced with the following:
	 
	 	 	“This Contract is written in a Chinese version and in an English version in eight (8)
originals each. Both language versions shall be equally authentic. DFL, Dongfeng Industry,
DFM, the Company and DANA shall each keep one (1) original in each language. The remaining
originals shall be submitted, as necessary, to governmental authorities. ”
	 
	3.77	 	Section (6) of Article 30.1(a) shall be deleted and the sequencing of the original section
(7) to (13) of Article 30.1(a) shall be adjusted accordingly.
	 
	3.78	 	The first sentence of Article 30.2(a) shall be revised and replaced with the following:
	 
	 	 	“The Approval Authority for this Contract is the Department of Commerce of Hubei Province.”
	 
	3.79	 	The following shall be inserted in Article 30.6(b) after the contact information of DFL:
	 
	 	 	“To Dongfeng Industry:

     Dongfeng (Shiyan) Industrial Company

     66 Gongyuan Road,

     Shiyan City, Hubei Province

14

 

     PRC

     Attention: General Manager

	 	 	To DFM :

     Dongfeng Motor Corporation

     1 Checheng Road

     Shiyan City, Hubei Province

     PRC

     Attention: General Manager”

	3.80	 	The contact information of Dana in Article 30.6(b) shall be revised and replaced with the
following:

	 	 	“To DANA:

     c/o 4500 Dorr Street

     Toledo, Ohio 43615

     U.S.A.

     Attention: Director of Dana Mauritius Limited

     Telephone: +1 419 535 4500”

	3.81	 	The signing page shall be revised and replaced with the following:
	 
	 	 	“This Contract is signed in Shanghai, PRC by the duly authorized representatives of DFL,
Dongfeng Industry, DFM and DANA on this 14th of March 2007.

	 	 	 	 	 	 	 	 	 	 	 
	Dongfeng Motor Co., Ltd.	 	Dana Mauritius Limited	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	By:	 	 	 	 
	 

	 	 

	 	 	 	 	 	 

	 	  
	 
	 	 	 	 	 	 	 	 	 	 
	Dongfeng (Shiyan) Industrial Company	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 	 	 	 	 
	 

	 	 

	 	 	 	 	 	 	 	  
	 
	 	 	 	 	 	 	 	 	 	 
	Dongfeng Motor Company	 	 	 	 	 	 
	 
	By:

	 	 	”		 	 	 	 	 	 
	 

	 	 

	 	 	 	 	 	 	 	  

	3.82	 	A Form Final Closing Agreement shall be attached at the end hereof.

15

 

	4.	 	Conflict with the JV Contract
	 
	 	 	The Parties hereby agree that if and to the extent that any provisions of the JV Contract
conflict with the provisions of this Amendment, the provisions of this Amendment shall
prevail.
	 
	5.	 	Effective Date 
	 
	 	 	This Amendment shall become effective upon the approval by the Approval Authority.

[The remainder of this page has been intentionally left blank]

16

 

IN WITNESS WHEREOF the Parties have executed this Amendment on the date appearing at the head
hereof.

	 	 	 
	Signed for and on behalf of
	 	 
	 
	DONGFENG MOTOR CO., LTD.
	 	 
	 
	 	 
	/s/ Ouyang Jie
 

	 	  
	Name: OUYANG Jie
	 	 
	Title: Vice President
	 	 
	 
	 	 
	Signed for and on behalf of
	 	 
	 
	DONGFENG (SHIYAN) INDUSTRIAL COMPANY
	 	 
	 
	 	 
	/s/ Chen Yaodong
 

Name: CHEN Yaodong

	 	  
	Title: Executive Deputy General Manager
	 	 
	 
	 	 
	Signed for and on behalf of
	 	 
	 
	DONGFENG MOTOR CORPORATION
	 	 
	 
	 	 
	/s/ Ouyang Jie
 

Name:

	 	  
	Title:
	 	 
	 
	 	 
	Signed for and on behalf of
	 	 
	 
	DANA MAURITIUS LIMITED
	 	 
	 
	 	 
	/s/ Frank Sheehan
 

Name: Frank SHEEHAN

	 	  
	Title: Authorized Representative
	 	 

17

 

Schedule 1

Form Final Closing Agreement

18

 

DONGFENG MOTOR CO., LTD.

DONGFENG (SHIYAN) INDUSTRIAL COMPANY

DONGFENG MOTOR CORPORATION

and

DANA MAURITIUS LIMITED

 

FINAL CLOSING AGREEMENT

 

19

 

THIS FINAL CLOSING AGREEMENT is made on [•] (this Agreement).

Between

	(1)	 	DONGFENG MOTOR CO., LTD., a Sino-Japanese equity joint venture with limited liability duly
established and validly existing under the laws the People’s Republic of China whose
registered address is at 84 Baiye Road, Wuhan Economic Development Zone, Wuhan, Hubei
Province, People’s Republic of China (DFL). The legal representative of DFL is Xu Ping, a
national of the PRC, who holds the position of chairman of the board.
	 
	(2)	 	DONGFENG (SHIYAN) INDUSTRIAL COMPANY, a company with limited liability duly established and
validly existing under the laws the People’s Republic of China whose registered address is at
No. 66 Gongyuan Road, Shiyan, Hubei Province, People’s Republic of China (Dongfeng Industry).
The legal representative of Dongfeng Industry is Li Zhenhua, a national of the PRC, who holds
the position of chairman of the board.
	 
	(3)	 	DONGFENG MOTOR CORPORATION, a state-owned enterprise with limited liability duly established
and validly existing under the laws the People’s Republic of China whose registered address is
at No. 1 Checheng Road, Shiyan, Hubei Province, People’s Republic of China (DFM). The legal
representative of DFM is Xu Ping, a national of the PRC, who holds the position of general
manager.
	 
	(4)	 	DANA MAURITIUS LIMITED, a company with limited liability duly established and validly
existing under the laws of the Republic of Mauritius whose principal place of business is at
Level 6, One Cathedral Square, Pope Hennessy Street, Port Louis, Mauritius (Dana). The legal
representative of Dana is Phillip A. Rotman II, a national of the United States of America,
who holds the position of Director.

For the purpose of this Agreement, each of DFL, Dongfeng Industry, DFM and Dana is referred to as a
Party, and collectively referred to as the Parties.

RECITALS

	(A)	 	Dongfeng Dana Axle Co., Ltd. (Business License Registration Number 4206001330066) is a joint
venture company of limited liability owned by DFL, Dongfeng Industry DFM and Dana, which is
duly established and validly existing under the laws of the People’s Republic of China with
its registered address at 10th Floor, Torch Building, Hi-Tech Industry Development
Zone, Xiangfan, Hubei Province, PRC (the Company).
	 
	(B)	 	DFL, Dongfeng Industry, DFM and Dana entered into a Partial Closing Agreement (the PCA) on
March 14, 2007 to amend the SPA. It was contemplated under the PCA that Dana would purchase
4% of the entire equity interests in the Company held by DFL. Meanwhile, DFL, Dongfeng
Industry, DFM and Dana entered into an Amendment to the Equity Joint Venture Contract (the
original Joint Venture Contract and such amendment are collectively referred to as the
Contract).
	 
	(C)	 	Upon friendly consultations, the Parties contemplate that Dana would purchase ten point nine
six percent (10.96%) of the equity interest in the Company held by Dongfeng Industry, nine
point eight one percent (9.81%) of the equity interest in the Company held by DFM, and an
additional twenty five point two three percent (25.23%) equity interest in the Company held by
DFL (collectively the Transferred Equity), on the basis of an appraised value agreed by the
Parties.

20

 

	(D)	 	Upon the completion of the sale and purchase by Dana of the Transferred Equity, being forty
six percent (46%) equity interest in the Company pursuant to this Agreement, DFL and Dana will
each hold a fifty percent (50%) equity interest therein.
	 
	(E)	 	It is contemplated that the Parties shall complete the transfer of the Transferred Equity
based on the terms and conditions set out in this Agreement.

Now Therefore, it is agreed as follows:

	1.	 	Definitions and Interpretation
	 
	1.1	 	Unless the context otherwise requires, the defined words and expressions used in this
Agreement shall have the following meanings:
	 
	 	 	Affiliates mean, in relation to any Party, any enterprise, corporation, partnership, trust
or other entity directly or indirectly controlling or controlled by or under direct or
indirect common control with that Party; control for the purposes of this definition being
taken to mean direct ownership of fifty percent (50%) or more of the registered capital,
stocks or the voting rights of such enterprise or entity;
	 
	 	 	Agreement means this Final Closing Agreement;
	 
	 	 	Approval Authority means the Department of Commerce of Hubei Province;
	 
	 	 	Business Day means a day (other than a Saturday or Sunday) on which banks generally are open
in the United States of America and the PRC for the transaction of normal banking business;
	 
	 	 	Company has the meaning as defined in Recital (A) of this Agreement;
	 
	 	 	Completion has the meaning as defined in Clause 4.1 of this Agreement;
	 
	 	 	Completion Date has the meaning as defined in Clause 2.4 of this Agreement;
	 
	 	 	Contract has the meaning as defined in Recital (D) of this Agreement;
	 
	 	 	DFL means Dongfeng Motor Co., Ltd.;
	 
	 	 	DFM means Dongfeng Motor Corporation;
	 
	 	 	Dongfeng Industry means Dongfeng (Shiyan) Industrial Company;
	 
	 	 	Dana means Dana Mauritius Limited;
	 
	 	 	Encumbrance means any mortgage, pledge, lien, charge, encumbrance, assignment,
hypothecation, priority, security interest, option, warrant, title retention, preferential
right, trust arrangement, security agreement or arrangement, or other third party claims or
rights (including rights of pre-emption) of any nature whatsoever;
	 
	 	 	HKIAC means the Hong Kong International Arbitration Center;
	 
	 	 	Party means DFL, Dongfeng Industry, DFM or Dana; and Parties means DFL, Dongfeng Industry,
DFM and Dana;

21

 

	 	 	PCA has the meaning as defined in Recital (B) of this Agreement;
	 
	 	 	PRC means the People’s Republic of China (but excluding, for the purposes of this Agreement,
Hong Kong, Taiwan and Macao);
	 
	 	 	SAIC means the State Administration for Industry and Commerce, or its provincial or local
branch in Hubei Province, as appropriate;
	 
	 	 	Transferred Equity has the meaning as defined in Recital (E) of this Agreement.
	 
	1.2	 	Headings are inserted for convenience only and shall not affect the construction of this
Agreement.
	 
	2.	 	Equity Transfer and Consideration
	 
	2.1	 	The Parties agree that DFL, Dongfeng Industry and DFM will transfer and Dana will acquire the
Transferred Equity free from any Encumbrance and together with all rights attached thereto
pursuant to the terms and conditions of this Agreement.
	 
	2.2	 	Each of DFL, Dongfeng Industry and DFM hereby consents to the transfer of the Transferred
Equity (in relation to the portion of Transferred Equity not held by itself) and provides Dana
with their respective waiver for the exercise of their first right of refusal with regard to
such Transferred Equity.
	 
	2.3	 	The consideration payable for the Transferred Equity shall be [Appraised Price] in accordance
with Article 5.12 of the Contract as amended. Such payment shall be made available to DFL ,
Dongfeng Industry and DFM (in proportion to their equity interest ratio in the Transferred
Equity) within ten (10) Business Days after the date that the Approval Authority has approved
the transfer of the forty six percent (46%) equity interest in the Company with the letter of
approval and the approval certificate indicating DFL and Dana’s respective shareholding as
fifty percent (50%) and fifty percent (50%), and otherwise containing terms not inconsistent
with the Parties’ intention, and that SAIC has issued a new business license to the Company on
this basis (the date of such payment shall hereinafter be referred to as the Completion Date).
	 
	3.	 	Lapse of Agreement
	 
	 	 	The Parties agree that, if the equity transfer contemplated hereunder has not been approved
and become effective on or before the end of the three-year period which commences from the
date that the new business license is issued reflecting the transfer of the 4% equity
interest in the Company as contemplated in the PCA or such later date as the Parties
mutually agree in writing from time to time, this Agreement shall automatically terminate in
which case none of the Parties shall have any claim of any nature whatsoever against any
other Party(ies) under this Agreement (save in respect of any rights and liabilities of the
Parties which have accrued before termination).
	 
	4.	 	Completion
	 
	4.1	 	The Parties agree that completion of the Transferred Equity shall take place as of the
Completion Date (the Completion).
	 
	4.2	 	The following list of documents shall be delivered to Dana within five working days after
Completion:

22

 

	 	(i)	 	the approval reply and the approval certificate issued by the Approval
Authority approving (i) the acquisition of the Transferred Equity by Dana pursuant to
this Agreement, (ii) the Amendment to the Equity Joint Venture Contract, (iii) the
amendment to the articles of association, and (iv) DFL holding fifty percent (50%) of
the registered capital of the Company and Dana holding fifty percent (50%) of the
registered capital of the Company;
	 
	 	(ii)	 	a new business license for the Company issued by SAIC or its local branches
which characterises the Company as a Sino-foreign equity joint venture with DFL and
Dana each holding fifty percent (50%) equity interest in the Company respectively;
	 
	 	(iii)	 	evidence that four (4) Dana appointees and four (4) DFL appointees have been
registered with SAIC or its local branch as constituting the entire board of directors
of the Company;
	 
	 	(iv)	 	the Amendment to the Equity Joint Venture Contract and the amendment to the
articles of association signed by all Parties;
	 
	 	(v)	 	a letter of appointment duly executed by DFL in the agreed form appointing four
(4) individuals to the board of directors of the Company; and
	 
	 	(vi)	 	powers of attorney of DFL, Dongfeng Industry and DFM authorising the execution
of this Agreement and other relevant agreements.

	5.	 	Post-Completion Undertaking
	 
	 	 	DFL , DFM and Dongfeng Industry agree and undertakes with Dana that as soon as practicable
and in any event within ten (10) Business Days after Dana makes full payment of the
Transferred Equity to DFL, DFM and Dongfeng Industry; DFL, DFM and Dongfeng Industry shall
cause the chairman of the board of directors of the Company to promptly issue an investment
certificate to Dana confirming its fifty percent (50%) equity interest in the Company,
provided that the Company has obtained the corresponding verification report from its
accountant.
	 
	6.	 	Right to Terminate
	 
	 	 	DFL and Dana may, at any time prior to the Completion Date, terminate this Agreement if
any governmental authority does not ratify the purchase price agreed by the Parties after
the Parties enter into this Agreement, which is within 18% plus or minus of RMB
446,200,000, in which case either Party may terminate this Agreement.
	 
	7.	 	Entire Agreement
	 
	 	 	This Agreement sets out the entire agreement and understanding between the Parties in
respect of the sale and purchase of the Transferred Equity. This Agreement supersedes all
prior agreements, understandings or arrangements (whether oral or written) relating to the
sale and purchase of the Transferred Equity. It is agreed that:

	 	(A)	 	no Party has entered into this Agreement in reliance upon any statement,
representation, warranty or undertaking of any other Party other than those expressly
set out or referred to in this Agreement;

23

 

	 	(B)	 	save for any such liability as a Party has under or in respect of any breach of
this Agreement or any other agreement or document referred to in this Agreement, no
Party shall owe any duty of care, nor have any liability in tort or otherwise, to any
other Party or any other person in respect of, arising out of, or in any way relating
to the transaction contemplated by this Agreement; and
	 
	 	(C)	 	the Parties confirm that for the purchase by Dana of the Transferred Equity
from DFL, Dongfeng Industry and DFM, DFL, Dongfeng Industry and DFM shall not be
obliged to make any representations, undertakings or warranties other than those
contained in this Agreement, nor be liable for any claims raised by Dana relating to
the Transferred Equity.

	8.	 	Variation
	 
	8.1	 	No variation of this Agreement shall be valid unless it is in writing and signed by or on
behalf of each of the Parties to it. The expression “variation” shall include any variation,
supplement, deletion or replacement however effected.
	 
	8.2	 	Unless expressly agreed, no variation shall constitute a general waiver of any provisions of
this Agreement, nor shall it affect any rights, obligations or liabilities under or pursuant
to this Agreement which have already accrued up to the date of variation, and the rights and
obligations of the Parties under or pursuant to this Agreement shall remain in full force and
effect, except and only to the extent that they are so varied.
	 
	9.	 	Assignment
	 
	9.1	 	None of the Parties hereunder shall nor shall it purport to assign, transfer, charge or
otherwise deal with all or any of its rights under this Agreement, nor grant, declare, create
or dispose of any right or interest in it without the prior written consent of the other
Parties.
	 
	9.2	 	Any purported assignment in contravention of this Clause 9 shall be void.
	 
	10.	 	Announcements 
	 
	 	 	Each Party hereby undertakes that it shall not and shall procure that each of its
Affiliates, directors, officers and employees shall not at any time make any public
announcement or circular or disclosure in connection with the existence or subject matter of
this Agreement without the prior written approval of the other Parties hereto (such approval
not to be unreasonably withheld or delayed); to the extent any public announcement, circular
or disclosure in connection with the existence or subject matter of this Agreement is
required to be made by any of the Parties pursuant to any applicable law or stock exchange
requirements, the Parties shall, to the maximum extent permitted under applicable laws and
stock exchange requirements, fully consult each other to agree on the scope and substance of
the required disclosure.
	 
	11.	 	Confidentiality
	 
	11.1	 	DFL undertakes to Dana that save as required by applicable law or stock exchange requirements
each of them shall not and shall procure that each of its directors, officers and employees
shall not at any time, save with the prior consent in writing of Dana, divulge or communicate
to any person other than to directors, officers, employees or professional advisers of Dana
any secret or confidential information concerning the Company or any customer or client or
business of the Company.

24

 

	11.2	 	Dana hereby undertakes to DFL that save as required by applicable law or stock exchange
requirements it and its Affiliates shall not and shall procure that each of its directors,
officers and employees shall not at any time save with the prior consent in writing of DFL
divulge or communicate to any person other than to its directors, officers, employees or
professional advisers any secret or confidential information concerning the Company or any
customer or client or business of the Company.
	 
	11.3	 	The restrictions contained in Clauses 11.1 and 11.2 above shall cease to apply in the event
that such information comes into the public domain (other than through any unauthorised
disclosure by DFL or Dana) or disclosure of such information is required by law or any court
or tribunal. If disclosure of such information is required by law or any court or tribunal,
then any of the Parties so required to disclose such information shall promptly inform and
consult with all the other Parties before taking any actions to make any disclosures as
required.
	 
	12.	 	Severability
	 
	 	 	If any provision of this Agreement is held to be invalid or unenforceable, then such
provision shall (so far as it is invalid or unenforceable) be given no effect and shall be
deemed not to be included in this Agreement but without invalidating any of the remaining
provisions of this Agreement. The Parties shall then use all reasonable endeavours to
replace the invalid or unenforceable provisions by a valid and enforceable substitute
provision the effect of which is as close as possible to the intended effect of the invalid
or unenforceable provision.
	 
	13.	 	Counterparts
	 
	 	 	This Agreement may be executed in any number of counterparts and by the Parties to it on
separate counterparts, each of which is an original but all of which together constitute one
and the same instrument.
	 
	14.	 	Waivers
	 
	14.1	 	No failure or delay by any Party in exercising any right or remedy provided by law under or
pursuant to this Agreement shall impair such right or remedy or operate or be construed as a
waiver or variation of it or preclude its exercise at any subsequent time and no single or
partial exercise of any such right or remedy shall preclude any other or further exercise of
it or the exercise of any other right or remedy.
	 
	14.2	 	The rights and remedies of any Party under or pursuant to this Agreement are cumulative, may
be exercised as often as such Party considers appropriate and are in addition to its rights
and remedies under general law.
	 
	15.	 	Further Assurance
	 
	 	 	Each Party agrees to perform (or procure the performance, by its duly authorised
representatives) all further acts and things, and execute and deliver (or procure the
execution and delivery of) such further documents, as may be required by law or as any other
Party may reasonably require, whether on or after Completion, to implement and/or give
effect to this Agreement and the transaction contemplated hereunder and for the purpose of
vesting in such Party the full benefit of the assets, rights and benefits to be transferred
to or conferred on such Party under this Agreement.

25

 

	16.	 	Notices
	 
	16.1	 	Any notice or other communication to be given by one Party to the other Parties under, or in
connection with, this Agreement shall be in writing and signed by or on behalf of the Party
giving it. It shall be served by sending it by pre-paid recorded express courier delivery to
the address set out in Article 30.6(b) of the Contract and marked for the attention of the
relevant Party set out in Article 30.6(b) of the Contract (or as otherwise notified from time
to time). Any notice so served by express courier shall be deemed to have been duly given at
10:00am on the seven (7th) Business Day following the date of posting.
	 
	16.2	 	References to time in this Clause are to local time in the country of the addressee.
	 
	16.3	 	A Party may notify the other Parties to this Agreement of a change to its name, relevant
addressee, or address for the purposes of this Clause 16, provided that, such notice shall
only be effective on:

	 	(A)	 	the date specified in the notice as the date on which the change is to take
place; or
	 
	 	(B)	 	if no date is specified or the date specified is less than five (5) Business
Days after the date on which notice is given, the date following five (5) Business Days
after notice of any change has been given.

	17.	 	Execution and Effectiveness
	 
	17.1	 	This Agreement shall be executed by the duly authorised representatives of the Parties hereto
and shall come into force after signing.
	 
	17.2	 	The Parties confirm that the Sale and Purchase Agreement entered into by DFL, Dongfeng
Industry, DFM and Dana on March 10, 2005 has been terminated on March 31, 2008.
	 
	17.3	 	Once this Agreement has been executed it shall then be submitted for approval by DFL to the
Approval Authority along with the Amendment to the Equity Joint Venture Contract and the
amendment to the articles of association.
	 
	18.	 	Governing law
	 
	 	 	The establishment, effectiveness, interpretation, amendment, performance and termination of
this Agreement shall be governed by and construed in accordance with the laws of the PRC. To
the extent there is no applicable PRC law, reference shall be made to international
practices.
	 
	19.	 	Settlement of disputes
	 
	19.1	 	The Parties shall try to resolve any dispute, controversy or claim arising out of or in
connection with this Agreement through friendly consultations between the Parties. But, if no
settlement is reached within twenty (20) Business Days from the date one Party notifies the
other Parties in writing of its intention to submit the dispute, controversy or claim to
arbitration in accordance with this Clause, then any such dispute, controversy or claim
arising out of or relating to this Agreement, or the breach, termination or invalidity
thereof, shall be settled by arbitration by HKIAC in accordance with the UNCITRAL Arbitration
Rules as at present in force and as may be amended by the rest of this Clause. The arbitration
will be administered by HKIAC in accordance with HKIAC Procedures for

26

 

	 	 	Arbitration in force at the date of this Agreement including additions to the UNCITRAL
Arbitration Rules as are therein contained.

	19.2	 	The place of arbitration shall be in Hong Kong at the Hong Kong International Arbitration
Center. The arbitration proceedings will be conducted in English and Chinese. The arbitration
panel will consist of three (3) members. Dana shall select one (1) arbitrator, and DFL,
Dongfeng Industry and DFM shall jointly select one (1) arbitrator. The presiding arbitrator
shall be selected by agreement between the arbitrators selected by the Parties or, failing
agreement within ten (10) Business Days of the appointment of the two (2) Party-nominated
arbitrators, by the Chairperson of the HKIAC. The presiding arbitrator shall not be a national
of the PRC or the United States of America. The arbitration award shall be final and binding
on the Parties, and the Parties agree to be bound thereby and to act accordingly. The costs of
arbitration and the costs of enforcing the arbitration award (including witness expenses and
reasonable attorneys’ fees) shall be borne by the losing Party(ies), unless otherwise
determined by the arbitration award.
	 
	19.3	 	In any arbitration proceeding, any legal proceeding to enforce any arbitration award and in
any legal action between the Parties pursuant to or relating to this Agreement, each Party
expressly waives any defence based on the fact or allegation that it is an agency or
instrumentality of a sovereign state.
	 
	19.4	 	Each Party shall continue to exercise its respective rights, and fulfill its obligations
under this Agreement while a dispute is being resolved through arbitration, except for the
matters in dispute.
	 
	19.5	 	Any award of the arbitrators may be enforced by any court having jurisdiction over the Party
against which the award has been rendered, or wherever assets of that Party are located, and
shall be enforceable in accordance with the New York Convention on the Recognition and
Enforcement of Foreign Arbitral Awards (1958).
	 
	20.	 	Language
	 
	 	 	This Agreement is written in a Chinese version and in an English version in eight (8)
originals each. Both language versions shall be equally authentic. Each of DFL, Dongfeng
Industry, DFM, the Company and Dana shall each keep one (1) original in each language. The
remaining originals shall be submitted, as necessary, to the governmental authorities.

[The remainder of this page has been intentionally left blank]

27

 

IN WITNESS WHEREOF, the Parties have executed this Agreement on the date appearing at the head
hereof.

	 	 	 
	Signed for and on behalf of
	 	 
	 
	DONGFENG MOTOR CO., LTD.
	 	 
	 
	 	 
	 

Name:

	 	  
	Title:
	 	 
	Date:
	 	 
	 
	 	 
	Signed for and on behalf of
	 	 
	 
	DONGFENG (SHIYAN) INDUSTRIAL COMPANY
	 	 
	 
	 	 
	 

Name:

	 	  
	Title:
	 	 
	Date:
	 	 
	 
	 	 
	Signed for and on behalf of
	 	 
	 
	DONGFENG MOTOR CORPORATION
	 	 
	 
	 	 
	 

Name:

	 	  
	Title:
	 	 
	Date:
	 	 

28

 

	 	 	 
	Signed for and on behalf of
	 	 
	 
	DANA MAURITIUS LIMITED
	 	 
	 
	 	 
	 

Name:

	 	  
	Title:
	 	 
	Date:
	 	 

29EX-10(V)

 

Exhibit 10-V

DATED 27 February 2007

	(1)	 	THE COMPANIES LISTED IN SCHEDULE 1
	 
	(2)	 	DANA MANUFACTURING GROUP PENSION SCHEME LIMITED
	 
	(3)	 	DANA UK PENSION SCHEME LIMITED
	 
	(4)	 	HOBOURN GROUP PENSION TRUST COMPANY LIMITED
	 
	(5)	 	Q. H. PENSION TRUSTEE LIMITED

 

AGREEMENT AS TO STRUCTURE

OF SETTLEMENT AND

ALLOCATION OF DEBT

 

 

 

CONTENTS

	 	 	 	 	 	 	 
	1.

	 	DEFINITIONS AND INTERPRETATION
	 	 	3	 
	2.

	 	CONDITIONS PRECEDENT
	 	 	5	 
	3.

	 	PAYMENT OBLIGATION
	 	 	5	 
	4.

	 	ALLOCATION OF PAYMENTS
	 	 	5	 
	5.

	 	STRUCTURE OF THE HIVE DOWN AND CVA
	 	 	6	 
	6.

	 	TRANSFER OF SHARES IN RETAINED BUSINESSES
	 	 	7	 
	7.

	 	AGREEMENT TO VOTE IN FAVOUR OF THE CVA
	 	 	8	 
	8.

	 	ESCROW
	 	 	9	 
	9.

	 	RELEASE
	 	 	9	 
	10.

	 	REPRESENTATIONS
	 	 	9	 
	11.

	 	FURTHER ASSURANCE
	 	 	10	 
	12.

	 	COSTS AND EXPENSES
	 	 	10	 
	13.

	 	MISCELLANEOUS
	 	 	10	 

 

 

THIS DEED is dated 27 February 2007 and made between:

	(1)	 	THE COMPANIES LISTED IN SCHEDULE 1 HERETO being various of the UK incorporated
subsidiaries of Dana Corporation (“Dana UK”);
	 
	(2)	 	DANA MANUFACTURING GROUP PENSION SCHEME LIMITED, a company incorporated under the
laws of England and Wales (Company Number: 03912079) and having its registered offices at the
offices of Newsome Vaughan, Greyfriars House, Greyfriars Lane, Coventry, CV23 (the “Dana
Manufacturing Group Pension Scheme”);
	 
	(3)	 	DANA UK PENSION SCHEME LIMITED, a company incorporated under the laws of England and
Wales (Company Number: 03912064) and having its registered offices at the offices of Newsome
Vaughan, Greyfriars House, Greyfriars Lane, Coventry, CV23 2GW (the “Dana UK Pension Scheme”);
	 
	(4)	 	HOBOURN GROUP PENSION TRUST COMPANY LIMITED, a company incorporated under the laws of
England and Wales (Company Number: 01749069) and having its registered offices at the offices
of Newsome Vaughan, Greyfriars House, Greyfriars Lane, Coventry, CV23 2GW (the “Hobourn Group
Pension Scheme”); and
	 
	(5)	 	Q. H. PENSION TRUSTEE LIMITED, a company incorporated under the laws of England and
Wales (Company Number: 01407197) and having its registered offices at the offices of Newsome
Vaughan, Greyfriars House, Greyfriars Lane, Coventry, CV23 2GW (the “QH Pension Plan”).

RECITALS:

	(A)	 	Certain UK incorporated companies within Dana UK have liabilities due to the Dana UK
Pension Scheme, the Dana Manufacturing Group Pension Scheme, the Hobourn Group Pension Scheme
and the QH Pension Plan (together, the “Schemes”) which they cannot meet in full, and whose
insolvency will result in the short term unless there is a compromise of those liabilities.
	 
	(B)	 	Further to discussions between Dana Group, the Pensions Regulator, the PPF and the
Schemes, it has been agreed that the liabilities due to the Schemes will be compromised in
full and final settlement of those liabilities by way of:

	 	(i)	 	a transfer of all of the defined benefit pension liabilities of Dana UK except
Dana UK 1 plc (as described in Schedule 1) to a newly incorporated company (the
“Company” (as further defined below));
	 
	 	(ii)	 	entry by the QH Plan and Dana UK 1 plc into a withdrawal arrangement as more
particularly described in Clause 5.1(F);
	 
	 	(iii)	 	a compromise of the defined benefit pension liabilities of the Company by
virtue of a Company Voluntary Arrangement as defined by section 1 of the Act (the
“CVA”), a draft of which is attached at Schedule 3 to this Deed;
	 
	 	(iv)	 	an issue of shares in the Retained Businesses to the Schemes; and

 

 

	 	(v)	 	a hive down of the Retained Businesses to new companies (the “Hive Down”).

	(C)	 	The arrangements contemplated herein including the Hive Down, and payment of monies
and the issue of shares in the Retained Businesses to the Schemes will be conditional upon the
receipt of Clearance from the Pensions Regulator (such Clearance has already been received)
and upon receipt of satisfactory confirmation from the PPF that it will to the extent
necessary vote in favour of the CVA.
	 
	(D)	 	It is anticipated that the Approval Date of the CVA will be on or around 11 April
2007.
	 
	(E)	 	The Parties enter into this Deed to confirm:

	 	(i)	 	the total amount to be paid by the Company under the CVA in compromise of all of the
liabilities due to each of the Schemes;
	 
	 	(ii)	 	the amount that each Scheme will receive under the CVA;
	 
	 	(iii)	 	the structure of the CVA;
	 
	 	(iv)	 	the Hive Down;
	 
	 	(v)	 	the mechanism to issue the shares in the Retained Businesses to the Schemes.

NOW THIS DEED SAYS as follows:

	1.	 	DEFINITIONS AND INTERPRETATION
	 
	1.1	 	Definitions
	 
	 	 	In this Deed:
	 
	 	 	“Act” means the Insolvency Act 1986 (as amended)
	 
	 	 	“Agreed Sum” means the amount of £47,500,000
	 
	 	 	“Approval Date” means either:

	 	(i)	 	the date being 28 days after which each of the reports required by section 4(6)
of the Act have been made to Court in respect of the CVA, provided that no application
has been filed at Court by that date under sections 4A or 6(3)(a) of the Act; or
	 
	 	(ii)	 	in the event an application to the Court whether pursuant to and in accordance
with sections 4A and/or 6 of the Act or otherwise is made before the date specified in
(i) above:

	 	(A)	 	the date on which the Court makes a final order against which
there is no right of appeal, the effect of which is that the Proposal shall
become effective as the CVA; or
	 
	 	(B)	 	in the absence of such a final order, the earlier of:

 

 

	 	(1)	 	the date of any dismissal or compromise of any
such application which has the effect of allowing the Proposal to
proceed to becoming effective as the CVA; and
	 
	 	(2)	 	the first Business Day following the expiry of
the specific time limit for appeal from the determination by the Court
allowing the Proposal to proceed to become effective as the CVA

	 	 	“Clearance” means the Pension Regulator issuing the following notices to Dana UK or any
associated or connected party (as defined in sections 435 and 249 of the Act) of Dana UK in
relation to the transactions set out in or contemplated by this Deed:

	 	(i)	 	that it would not be reasonable to impose any liability on the Dana Group under
a contribution notice issued under Section 38; and
	 
	 	(ii)	 	that it would not be reasonable to impose the requirements of a financial
support direction, in relation to the acts contemplated in this Deed, on the Dana Group

	 	 	“Company” means Shelfco 1882 Limited, a company incorporated under the laws of England and
Wales (Company Number 06057554) and having its registered office at 21 Tudor Street,
London, EC4Y 0DJ
	 
	 	 	“Dana Group” means, except as specifically defined in relation to Clause 9 only, Dana
Corporation, a corporation incorporated in Virginia, United States, with its principal
executive offices located 4500 Dorr Street, Toledo, Ohio, United States and all or any of
its direct or indirect subsidiaries or affiliates
	 
	 	 	“Escrow Agreement” means the agreement between (1) DSEL (2) the Trustees and (3) Denton
Wilde Sapte LLP in terms attached at Schedule 2
	 
	 	 	“Party” means a party hereto, collectively, “Parties”
	 
	 	 	“Pensions Regulator” means the body established by Part 1 of the Pension Acts 2004 of Napier
House, Trafalgar Place, Brighton, BN1 4DW
	 
	 	 	“Proposal” means the proposal for the CVA in terms materially similar to those contained in
the draft attached at Schedule 3 to this Deed
	 
	 	 	“PPF” means the Pension Protection Fund, a body established by Part 2 of the Pensions Act
2004, of Knollys House, 17 Addiscombe Road, Croydon, Surrey, CR0 6SR
	 
	 	 	“PPF Side Letter” means the letter in agreed terms from the PPF to the Company dated on or
around the date of this Deed
	 
	 	 	“Retained Businesses” means:

	 	(i)	 	the undertaking and business of the manufacture of light axles carried out
primarily at premises located at Unit C, Electra Park, Electric Avenue, Witton,
Birmingham B6 7JJ (“Axle Business”); and

 

 

	 	(ii)	 	the undertaking and business of the assembly of drive shafts carried out
primarily at premises located at Magnolia House, Rutherford Drive, Park Farm South,
Wellingborough NN8 6AQ (“Driveshaft Business”)

	 	 	“Supervisors” means Neville Barry Kahn and Nicholas James Dargan both of Deloitte & Touche
LLP, 1 Stonecutter Court, Stonecutter Street, London, EC4A 4TR in their intended capacity as
joint Supervisors of the Company’s proposed CVA
	 
	 	 	“Trustees” means the trustees of each of Dana Manufacturing Group Pension Scheme Limited,
Dana UK Pension Scheme Limited, Hobourn Group Pension Trust Company Limited and Q.H. Pension
Trustee Limited, individually a “Trustee”.

	1.2	 	Clauses
	 
	 	 	In this Deed any reference to a “Clause” or a “Schedule” is, unless the context otherwise
requires, a reference to a Clause or a Schedule to this Deed.
	 
	2.	 	CONDITIONS PRECEDENT
	 
	2.1	 	All obligations contained in this Deed are conditional upon:

	 	(A)	 	Clearance being received; and
	 
	 	(B)	 	receipt of the PPF Side Letter.

	2.2	 	All obligations contained in this Deed are conditional upon the Agreed Sum being
received into an escrow account established under the Escrow Agreement.
	 
	3.	 	PAYMENT OBLIGATION
	 
	 	 	The Agreed Sum will be paid to the Schemes in the proportions set out in Clause 4.1 on the
terms set out in the Escrow Agreement on the earlier of:

	 	(A)	 	5 working days after the Approval Date or
	 
	 	(B)	 	30 April 2007

	4.	 	ALLOCATION OF PAYMENTS
	 
	4.1	 	The Trustees of the Schemes will each receive the following amounts:

	 	(A)	 	the Dana Manufacturing Group Pension Scheme shall receive £7,515,191;
	 
	 	(B)	 	the Dana UK Pension Scheme shall receive £21,019,050;
	 
	 	(C)	 	the Hobourn Group Pension Scheme shall receive £2,231,072; and
	 
	 	(D)	 	the QH Pension Plan shall receive £16,734,687.

	4.2	 	The Schemes shall bear their own costs and expenses (including, but not limited to,
legal and financial advisers’ fees) incurred in connection with the compromise to be effected
and shall have no claim against the Dana Group in respect of any costs and expenses.

 

 

	5.	 	STRUCTURE OF THE CVA
	 
	5.1	 	The Parties agree that the CVA will be structured such that:

	 	(A)	 	the Company is part of the Dana Group and the Trustees and principal employer
of each Scheme enter into a deed to substitute the Company as principal employer and to
admit it as a participating employer;
	 
	 	(B)	 	employees of the Company may be admitted to all Schemes concurrently and
accrue benefits on a daily rather than a monthly basis and the terms of each Scheme
shall be amended as necessary;
	 
	 	(C)	 	the contract of employment of one consenting, active employee is transferred
to the Company, including his rights to participate in each of the four Schemes
concurrently;
	 
	 	(D)	 	save as provided in Clause (F), the Trustees and principal employer of each
Scheme enter into a deed of amendment to:

	 	(1)	 	allocate the liability under section 75 or 75A of the Pensions Act
1995 to that Scheme between the existing participating employers and the
Company, such that the existing participating employers are liable only for a
nominal sum of £1 each (the “Nominal Sum”); and
	 
	 	(2)	 	ensure (if necessary) that there is no partial winding up of any of
the Schemes on an employer cessation event and (if necessary) to amend the
rules (on and from the date the deed of amendment is entered into) so that
there is no requirement to segregate on an employment cessation event;

	 	(E)	 	each of the participating employers (other than the Company) will give notice
under the appropriate Scheme rules to terminate its participation in each Scheme in
which it is a participating employer and the Trustees shall accept such notice where
upon an employment cessation event will occur (and it is noted that the obligations
under this Clause may be captured in a deed of cessation);
	 
	 	(F)	 	the QH Pension Plan, Dana UK 1 plc and the Company will agree and enter into a
withdrawal arrangement (as defined in paragraph 1 of Schedule 1A of the Occupational
Pension Schemes (Employer Debt) Regulations 2005) in relation to the debt that they
will agree has arisen in relation to Dana UK 1 plc’s participation in the QH Pension
Plan, by which £1 of the liability is allocated to Dana UK 1 plc and the remainder
shall be guaranteed by the Company. Such agreement shall be submitted to the Regulator
for approval and no objections thereto shall be raised by any party hereto;
	 
	 	(G)	 	the Nominal Sum is then demanded and paid, and each of the Trustees will:

	 	(1)	 	confirm no cessation expenses are payable in respect of the relevant
Scheme; and

 

 

	 	(2)	 	issue a discharge in respect of the past, present and future
liabilities to the relevant Scheme of each participating employer (other than
the Company),

	 	 	 	with the intention of leaving the Company as the only employer under each of the
Schemes and thus liable for the balance of the debt owed to the Schemes;

	 	(H)	 	the Company will (where necessary) give notice under the appropriate Scheme
rules to terminate its participation in each Scheme in which it is a participating
employer and the Trustees shall accept such notice and accordingly an employment
cessation event shall occur and the employee referred to in sub-Clause (C) above shall
be entitled only to those benefits which are available to employees with less than 3
months pensionable service;
	 
	 	(I)	 	the Trustees (where necessary) will give notice to wind up each of the
Schemes;
	 
	 	(J)	 	the balance of the liability under sections 75 and 75A of the Pensions Act
1995 to the Schemes is demanded from the Company as sole employer which it is unable to
pay;
	 
	 	(K)	 	the directors of the Company propose a CVA to compromise the liability to each
Scheme; and
	 
	 	(L)	 	the Company then implements the CVA compromising the liability, in respect of
which the Agreed Sum will be paid in accordance with this Deed.

	5.2	 	The Trustees agree to enter into such agreements and make such demands as are
necessary to enable the Company to enter into the CVA.
	 
	5.3	 	Dana UK agrees to:

	 	(A)	 	find and transfer a consenting, eligible employee to the Company; and
	 
	 	(B)	 	enter into such agreements and take all steps as may be reasonably required to
propose and obtain the approval of the CVA.

	6.	 	TRANSFER OF SHARES IN RETAINED BUSINESSES
	 
	6.1	 	DSEL (as defined in Schedule 1) agrees to issue to the Schemes and the Schemes agree
to subscribe for, pursuant to the Shareholders’ Agreements (as defined below), shares in the
companies that will hold or operate the Retained Businesses in accordance with the following
mechanism.

	 	(A)	 	DSEL has incorporated three new companies: New HoldCo, AxleCo and DriveshaftCo
(each as defined in Schedule 1).
	 
	 	(B)	 	DSEL and each of the Schemes will subscribe for, and New HoldCo will issue,
989 10p shares in the following amounts:

	 	(1)	 	809 shares to DSEL;

 

 

	 	(2)	 	29 shares to the Dana Manufacturing Group Pension Scheme;
	 
	 	(3)	 	80 shares to the Dana UK Pension Scheme;
	 
	 	(4)	 	8 shares to the Hobourn Group Pension Scheme; and
	 
	 	(5)	 	63 shares to the QH Pension Plan.

	 	(C)	 	DSEL and each of the Schemes will subscribe for, and AxleCo and DriveshaftCo
will each issue, 989 10p shares in the following amounts:

	 	(1)	 	806 shares to DSEL;
	 
	 	(2)	 	29 shares to the Dana Manufacturing Group Pension Scheme;
	 
	 	(3)	 	81 shares to the Dana UK Pension Scheme;
	 
	 	(4)	 	9 shares to the Hobourn Group Pension Scheme; and
	 
	 	(5)	 	64 shares to the QH Pension Plan.

	 	(D)	 	DSEL will transfer the Axle Business to AxleCo and the Driveshaft Business to
DriveshaftCo in consideration for the issue of one new ordinary share each to DSEL; and
	 
	 	(E)	 	DSEL will exchange its shares in AxleCo and DriveshaftCo for one share in New
HoldCo. As a result, the Schemes will between them have 33.01% of the equity interest
in both AxleCo and DriveshaftCo.

	6.2	 	The parties who will be the shareholders of each of New Holdco, AxleCo and
DriveshaftCo following completion of the subscriptions referred to in Clause 6.1 shall enter
into the form of a shareholders agreement attached at Schedule 4 to this Deed in respect of
each of New Holdco, AxleCo and DriveshaftCo respectively (each a “Shareholders Agreement”), on
the date on which the subscription shall take place.
	 
	7.	 	AGREEMENT TO VOTE IN FAVOUR OF THE CVA
	 
	7.1	 	The PPF has signed a side letter confirming that it will exercise the votes of the
Schemes in favour of the CVA with terms substantially similar to those contained in the draft
attached at Schedule 3 to this Deed.
	 
	7.2	 	The Member (as defined in Schedule 1) agrees and, to the extent necessary, the
Trustees of each of the Schemes agree to vote in favour of the CVA in terms substantially
similar to those contained in the draft attached at Schedule 3 to this Deed subject to the
right of the PPF to exercise the votes of each of the Schemes as creditors under the CVA if
the PPF obtains such rights in accordance with section 137 of the Pensions Act 2004.
	 
	7.3	 	Dana UK agrees to procure that any Dana UK company entitled to vote in the CVA, votes
in favour of the CVA.

 

 

	7.4	 	Subject to the Schemes having used reasonable endeavours to confirm that there is
such a company, Dana UK agrees to wind up any company (other than those set out in Schedule 1)
which is a member of the Dana Group and is found to be a participating employer in relation to
any of the Schemes for the purposes of the PPF entry rules.
	 
	7.5	 	Dana UK agrees to pay all costs and expenses of the Company and its advisers incurred
in proposing the CVA and all costs and expenses of the nominee and supervisor of the CVA.
	 
	8.	 	ESCROW
	 
	 	 	The Company will as a precondition of the deed of amendment referred to in Clause 5.1(D)
above procure that the Agreed Sum is paid into the client account of Denton Wilde Sapte
LLP, to be held and applied upon the terms agreed in the Escrow Agreement.
	 
	9.	 	RELEASE
	 
	9.1	 	Subject to Clause 9.3, each of the Schemes agrees that, receipt by it, whether under
the CVA or otherwise, of the amount due to be paid to such Scheme under Clause 4.1 and the
issue of the shares in the Retained Businesses in the amounts set out in Clause 6 shall be in
full and final settlement of all and any claims and entitlements (whether past, present or
future, actual, prospective or contingent, direct or indirect) which such Scheme had, has or
may have against the Dana Group, whether arising in contract, tort, equity, under statute or
howsoever and the Dana Group will have no ongoing liabilities of any kind to that Scheme
(apart from any claims which any of the Schemes or their successors may have by virtue of
their ownership of the shares in the Retained Businesses).
	 
	9.2	 	Subject to Clause 9.3, each of the Schemes agrees that, receipt by it, whether under
the CVA or otherwise, of the amount due to be paid to such Scheme under Clause 4.1 and the
issue to such Scheme of the shares in the Retained Businesses in the amounts set out in Clause
6, the Dana Group shall be forever discharged and released from all and any claims and
entitlements (whether past, present or future, actual, prospective or contingent, direct or
indirect) which such Scheme had, has or may have against the Dana Group, whether arising in
contract, tort, equity, under statute or howsoever, (apart from any claims which any of the
Schemes or their successors may have by virtue of their ownership of the shares in the
Retained Businesses), and such discharge and release shall be automatic and irrevocable.
	 
	9.3	 	For the purposes of this Clause 9 only, “Dana Group” does not include the Company.
	 
	10.	 	REPRESENTATIONS
	 
	 	 	Each Party makes the following representations on the date hereof:
	 
	10.1	 	Status
	 
	 	 	It is an entity duly organised under the laws of its jurisdiction of incorporation and has
and will have the necessary power to enable it to enter into and perform its obligations
under this Deed.

 

 

	10.2	 	Binding Obligations
	 
	 	 	This Deed constitutes its legal, valid and binding obligations, enforceable against it in
accordance with the terms of this Deed.
	 
	10.3	 	Non-conflict with other obligations
	 
	 	 	The entry into and performance by it of, and the transactions contemplated by, this Deed do
not and will not conflict with:

	 	(A)	 	any law or regulation applicable to it;
	 
	 	(B)	 	its constitutional documents; or
	 
	 	(C)	 	any agreement or instrument binding upon it or any of its assets.

	10.4	 	Power and authority
	 
	 	 	It has the power to enter into, perform and deliver, and has taken all necessary action to
authorise its entry into, performance and delivery of, this Deed and the transactions
contemplated herein.

	10.5	 	Validity and admissibility in evidence
	 
	 	 	All authorisations and other actions, conditions and things required to be taken, fulfilled
and done in order:

	 	(A)	 	to enable it lawfully to enter into, exercise its rights and comply with its
obligations herein; and
	 
	 	(B)	 	to make this Deed admissible in evidence in the courts of England

	 	 	 	have been obtained or effected and are in full force and effect.

	11.	 	FURTHER ASSURANCE
	 
	11.1	 	Subject to documentation, each Party shall at its own expense, do all such acts and
things as are necessary or desirable to give effect to the terms of this Deed
	 
	11.2	 	Dana UK agrees that a group company of Dana UK, other than NewHoldco, AxleCo and
DriveShaftCo, shall accept responsibility for any tax liability which arises by reason of or
in connection with the Hive Down.
	 
	12.	 	COSTS AND EXPENSES
	 
	 	 	Each Party shall be responsible for its own costs and expenses (including legal fees)
incurred by it in connection with the negotiation, preparation, printing and execution of
this Deed and any other documents referred to in this Deed. For the avoidance of doubt, the
reasonable costs of the PPF shall be borne by Dana UK.
	 
	13.	 	MISCELLANEOUS
	 
	13.1	 	Counterparts

 

 

	 	 	This Deed may be signed in any number of counterparts, and this has the same effect as
if the signatures on the counterparts were on a single copy of this Deed.
	 
	13.2	 	Waiver
	 
	 	 	No failure to exercise, and no delay in exercising, any right or remedy under this Deed will
operate as waiver of that right or remedy nor will any single or partial exercise of any
right or remedy preclude any other of further exercise of that right or remedy or the
exercise of any other right or remedy.
	 
	13.3	 	Confidentiality
	 
	 	 	Each Party will keep confidential the terms of this Deed save as to:

	 	(A)	 	Dana Group in relation to any information (1) which Dana Group is required to
disclose for the purposes of obtaining Clearance from the Pensions Regulator,
completing the Hive Down, entering into the CVA, by applicable law or by an order of a
court of competent jurisdiction, or (2) that is reasonably required to be communicated
to the employees of Dana UK (a copy of such information to be sent to the Schemes as
soon as reasonably possible after its dissemination);
	 
	 	(B)	 	the Schemes in relation to any information which is permitted or reasonably
required to be communicated to the members of the Schemes, such information to be
notified in writing in advance to Dana UK;
	 
	 	(C)	 	any information a Party is required to disclose by applicable law or an order
of a court of competent jurisdiction but then only to the extent of such required
disclosure. In such an event, such Party shall inform Dana UK promptly in writing (at
the addresses listed in Schedule 1) of the nature and extent of the disclosure.

	13.4	 	Third party rights
	 
	 	 	A person who is not a party to this Deed has no right under the Contracts (Rights of Third
Parties) Act 1999 to enforce or to enjoy the benefit of any term of this Deed.
	 
	13.5	 	Jurisdiction
	 
	 	 	This Deed shall be governed by and construed in accordance with English Law. The Courts of
England and Wales shall have exclusive jurisdiction in relation to this Deed.

AS WITNESS WHEREOF this Deed has been executed as a deed by the Parties hereto and is intended to
be delivered and is hereby delivered as a deed on the date specified above.

 

 

	 	 	 
	Executed as a Deed

	 	)
	by DANA AUTOMOTIVE LIMITED

	 	)
	acting by

	 	)
	 
	 	 
	 
	 	 
	/s/ E. A. Johnson
 

	 	 
	 
	 	 
	 
	 	 
	/s/ J. M. Clarke
 

	 	 
	 
	 	 
	 
	 	 
	Executed as a Deed

	 	)
	by DANA SPICER EUROPE

	 	)
	LIMITED acting by

	 	)
	 
	 	 
	 
	 	 
	/s/ E. A. Johnson
 

	 	 
	 
	 	 
	 
	 	 
	/s/ J. M. Clarke
 

	 	 
	 
	 	 
	 
	 	 
	Executed as a Deed

	 	)
	by DANA SPICER LIMITED

	 	)
	acting by

	 	)
	 
	 	 
	 
	 	 
	/s/ E. A. Johnson
 

	 	 
	 
	 	 
	 
	 	 
	/s/ J. M. Clarke
 

	 	 

 

 

	 	 	 
	Executed as a Deed

	 	)
	by DANA UK 1 PLC

	 	)
	acting by

	 	)
	 
	 	 
	 
	 	 
	/s/ E. A. Johnson
 

	 	 
	 
	 	 
	 
	 	 
	/s/ J. M. Clarke
 

	 	 
	 
	 	 
	 
	 	 
	Executed as a Deed

	 	)
	by ECHLIN EUROPE LIMITED

	 	)
	acting by

	 	)
	 
	 	 
	 
	 	 
	/s/ E. A. Johnson
 

	 	 
	 
	 	 
	 
	 	 
	/s/ J. M. Clarke
 

	 	 
	 
	 	 
	 
	 	 
	Executed as a Deed

	 	)
	by SHELFCO 1882 LIMITED

	 	)
	acting by

	 	)
	 
	 	 
	 
	 	 
	/s/ E. A. Johnson
 

	 	 
	 
	 	 
	 
	 	 
	/s/ J. M. Clarke
 

	 	 

 

 

	 	 	 
	Executed as a Deed

	 	)
	by DANA UK AUTOMOTIVE

	 	)
	SYSTEMS LIMITED

	 	)
	acting by

	 	)
	 
	 	 
	 
	 	 
	/s/ E. A. Johnson
 

	 	 
	 
	 	 
	 
	 	 
	/s/ J. M. Clarke
 

	 	 
	 
	 	 
	 
	 	 
	Executed as a Deed

	 	)
	by DANA UK AXLE LIMITED

	 	)
	acting by

	 	)
	 
	 	 
	 
	 	 
	/s/ E. A. Johnson
 

	 	 
	 
	 	 
	 
	 	 
	/s/ J. M. Clarke
 

	 	 
	 
	 	 
	 
	 	 
	Executed as a Deed

	 	)
	by DANA UK DRIVESHAFT LIMITED

	 	)
	acting by

	 	)
	 
	 	 
	 
	 	 
	/s/ E. A. Johnson
 

	 	 
	 
	 	 
	 
	 	 
	/s/ J. M. Clarke
 

	 	 

 

 

	 	 	 
	Executed as a Deed

	 	)
	by DANA UK PENSION

	 	)
	SCHEME LIMITED

	 	)
	acting by

	 	)
	 
	 	 
	 
	 	 
	/s/ Colin Parker

 

	 	 
	 
	 	 
	 
	 	 
	/s/ Alfons Sandoz

 

	 	 
	 
	 	 
	 
	 	 
	Executed as a Deed

	 	)
	by DANA MANUFACTURING

	 	)
	GROUP PENSION

	 	)
	SCHEME LIMITED

	 	)
	acting by

	 	)
	 
	 	 
	 
	 	 
	/s/ Robin Burkett

 

	 	Trustee Director
	 
	 	 
	 
	 	 
	/s/ S. P. Harrison
 

	 	 
	 
	 	 
	 
	 	 
	Executed as a Deed

	 	)
	by HOBOURN GROUP PENSION

	 	)
	TRUST COMPANY LIMITED

	 	)
	acting by

	 	)
	 
	 	 
	 
	 	 
	/s/ M. A. Ashworth
 

	 	 
	 
	 	 
	 
	 	 
	/s/ S. P. Harrison
 

	 	 

 

 

	 	 	 
	Executed as a Deed

	 	)
	by Q. H. PENSION

	 	)
	TRUSTEE LIMITED

	 	)
	acting by

	 	)
	 
	 	 
	 
	 	 
	/s/ M. Robbins
 

	 	 
	 
	 	 
	 
	 	 
	/s/ C. Jones
 

	 	 
	 
	 	 
	 
	 	 
	Executed as a Deed

	 	)
	by WHITELEY RISHWORTH

	 	)
	LIMITED

	 	)
	acting by

	 	)
	 
	 	 
	 
	 	 
	/s/ E. A. Johnson
 

	 	 
	 
	 	 
	 
	 	 
	/s/ J. M. Clarke
 

	 	 

 

 

SCHEDULE 1

Dana UK

DANA AUTOMOTIVE LIMITED a company incorporated under the laws of England and Wales (Company
Number: 02295800) and having its registered offices at the offices of Newsome Vaughan, Greyfriars
House, Greyfriars Lane, Coventry, CV23 2GW;

DANA SPICER EUROPE LIMITED a company incorporated under the laws of England and Wales (Company
Number: 00467474) and having its registered offices at the offices of Newsome Vaughan, Greyfriars
House, Greyfriars Lane, Coventry, CV23 2GW (“DSEL”);

DANA SPICER LIMITED a company incorporated under the laws of England and Wales (Company Number:
03672923) and having its registered offices at the offices of Newsome Vaughan, Greyfriars House,
Greyfriars Lane, Coventry, CV23 2GW;

DANA UK 1 PLC a company incorporated under the laws of England and Wales (Company Number: 00455464)
and having its registered offices at the offices of Newsome Vaughan, Greyfriars House, Greyfriars
Lane, Coventry, CV23 2GW; and

ECHLIN EUROPE LTD, a company incorporated under the laws of England and Wales (Company Number:
01998884) and having its registered offices at the offices of Newsome Vaughan, Greyfriars House,
Greyfriars Lane, Coventry, CV23 2GW

SHELFCO 1882 LIMITED, a company incorporated under the laws of England and Wales (Company Number
06057554) and having its registered office at 21 Tudor Street, London, EC4Y 0DJ

DANA UK AUTOMOTIVE SYSTEMS LIMITED, a company incorporated under the laws of England and Wales
(Company Number 6088804) and having its registered office at 21 Tudor Street, London, EC4Y 0DJ
(“New HoldCo”);

DANA UK AXLE LIMITED, a company incorporated under the laws of England and Wales (Company Number
6088792) and having its registered office at 21 Tudor Street, London, EC4Y 0DJ (“AxleCo”);

DANA UK DRIVESHAFT LIMITED, a company incorporated under the laws of England and Wales (Company
Number 6088797) and having its registered office at 21 Tudor Street, London, EC4Y 0DJ
(“DriveShaftCo”)

WHITELEY RISHWORTH LIMITED, a company incorporated under the laws of England and Wales (Company
Number 02295731) and having its registered office at Newsome Vaughan, Greyfriars House, Greyfriars
Lane, Coventry, West Midlands CV1 2GW (the “Member”)

 

 

SCHEDULES 2-4

[Omitted]

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