Document:

<PAGE>

                                                                    EXHIBIT 10.3

                      SECOND AMENDMENT TO CREDIT AGREEMENT
                                   AND CONSENT

            SECOND AMENDMENT TO CREDIT AGREEMENT, dated as of April 10, 2007
(this "Amendment"), among VISTEON CORPORATION, a Delaware corporation (the
"Company"), each subsidiary of the Company party hereto (together with the
Company, each a "Borrower" and, collectively, the "Borrowers"), the Lenders
party hereto, and JPMORGAN CHASE BANK, N.A. ("JPMorgan"), as Administrative
Agent, Issuing Bank and Swingline Lender.

                              W I T N E S S E T H:

            WHEREAS the Borrowers, the Lenders party thereto, and JPMorgan, as
Administrative Agent, Issuing Bank and Swingline Lender, have entered into that
certain Credit Agreement, dated as of August 14, 2006, as amended, supplemented
or modified by that certain First Amendment to Credit Agreement and Consent,
dated as of November 27, 2006 (as so amended, supplemented or modified, the
"Credit Agreement"; capitalized terms used herein but not otherwise defined
herein shall have the meanings given such terms in the Credit Agreement);

            WHEREAS the Borrowers have requested that the Lenders and the
Administrative Agent amend certain provisions of the Credit Agreement, and the
Lenders and the Administrative Agent are willing to so amend the Credit
Agreement on the terms and subject to the conditions set forth herein; and

            WHEREAS the Borrowers have requested that the Lenders, for the
avoidance of doubt, consent to the amendment and restatement of the Term Loan
Facility, and the Lenders are willing to consent to such amendment and
restatement on the terms and subject to the conditions set forth herein; and

            WHEREAS the Borrowers have requested that the Lenders consent to the
amendment of certain provisions of the Intercreditor Agreement, and the Lenders
are willing to consent to such amendment on the terms and subject to the
conditions set forth herein.

            NOW, THEREFORE, in consideration of the premises and the mutual
covenants herein contained, the parties hereto hereby agree as follows:

                                   ARTICLE I

                                   AMENDMENTS

            Section 1.1 Amendment to Section 1.01. Section 1.01 of the Credit
Agreement is hereby amended as follows:

                  (a) The following new defined term is hereby inserted in
proper alphabetical order:

            "Securitization Subsidiary" a Domestic Subsidiary of the Company
      newly created to act as the principal for the European contract
      manufacturing arrangement and to be responsible for managing the functions
      and risks of the Company's European operations;

<PAGE>
                                                                SECOND AMENDMENT
                                                     TO VISTEON CREDIT AGREEMENT
                                                                     AND CONSENT

      provided that such Domestic Subsidiary shall be subject to the limitations
      set forth in Section 6.20.

                  (b) The defined term "European Facility" is hereby amended by
(i) deleting the following: "on the date hereof", (ii) adding the following
after the words "jurisdictions in Europe and": "the Securitization Subsidiary
and", and (iii) deleting the words ""as described in the Information Memorandum"
and inserting the following in lieu thereof: "pursuant to documentation dated as
of August 14, 2006 and November 13, 2006, in each case, as amended".

                  (c) The defined term "Foreign Stock Holding Company" is hereby
amended by (i) deleting the text ", it being understood" and inserting the
following in lieu thereof: ". It is understood and agreed", (ii) adding the
following after the words "being the Capital Stock of first-tier Foreign
Subsidiaries) and": "each", and (iii) adding the following after the words
"Section 6.15. It is": "further".

                  (d) The defined term "Intercreditor Agreement" is hereby
amended by inserting at the end thereof: ", as amended".

                  (e) The defined term "Permitted Encumbrance" is hereby amended
by inserting after the words "Sections 6.02(a) through (e)": " and (j)".

                  (f) The defined term "Standard Securitization Undertakings" is
hereby amended by inserting after each instance of the words "Foreign
Subsidiaries" appearing therein the following: "and the Securitization
Subsidiary".

            Section 1.2 Amendments to Article III. Article III of the Credit
Agreement is hereby amended as follows:

                  (a) Section 3.01(b) of the Credit Agreement is hereby amended
by deleting the words "the date hereof" in the last sentence of such Section and
inserting in lieu thereof: "August 14, 2006,".

            Section 1.3 Amendments to Article V. Article V of the Credit
Agreement is hereby amended as follows:

                  (a) Section 5.14(b) of the Credit Agreement is hereby amended
by (i) inserting immediately following the words "first priority" appearing in
the first sentence of such Section: "(except with respect to the Securitization
Subsidiary)", (ii) inserting at the end of the first sentence of such Section:
";provided, however, with respect to the Securitization Subsidiary, such Lien
shall have the priority required under the Intercreditor Agreement" and (iii)
deleting the words "(in each case for clauses (i) through (iii) excluding
Capital Stock of any Borrower in Halla)".

                  (b) Section 5.14(d) of the Credit Agreement is hereby amended
by (i) adding the following after the words "(other than an Excluded Entity":
"or, except with regard to clauses (ii) and (iii) below, the Securitization
Subsidiary)", (ii) inserting the following after the words "(other than an
existing Excluded Entity, except as provided below": "or the Securitization
Subsidiary, except with regard to clauses (ii) and (iii) below", and (iii)
inserting after the words "which becomes a Material Domestic Subsidiary after
the Effective Date": ")".

                                       2
<PAGE>

                                                                SECOND AMENDMENT
                                                     TO VISTEON CREDIT AGREEMENT
                                                                     AND CONSENT

                  (c) Section 5.14(f) of the Credit Agreement is hereby amended
by deleting the reference to "Halla or any other" and inserting in lieu thereof:
"any".

            Section 1.4 Amendment to Article VI. Article VI of the Credit
Agreement is hereby amended as follows:

                  (a) Section 6.01(b) of the Credit Agreement is hereby amended
by deleting the reference to "$1,000,000,000" and inserting in lieu thereof
"$1,700,000,000".

                  (b) Section 6.01(d) of the Credit Agreement is hereby amended
by (i) inserting after the words "Indebtedness of": "(a)", and (ii) adding the
following at the end thereof: "and (b) the Securitization Subsidiary owed to any
Foreign Subsidiary or of any Foreign Subsidiary owed to the Securitization
Subsidiary;

                  (c) Section 6.01(i) is hereby amended by (i) adding the
following after the words "Indebtedness of Foreign Subsidiaries": "and the
Securitization Subsidiary", (ii) adding the following after the words "(or, in
the case of Portuguese Receivables, Bermuda)": " and the Securitization
Subsidiary ", (iii) adding the following after the words "issued or created by
any Borrower or any of its Domestic Subsidiaries": "(other than the
Securitization Subsidiary);".

                  (d) Section 6.01(n) of the Credit Agreement is hereby amended
by deleting the reference to "$250,000,000" and inserting in lieu thereof
"$350,000,000".

                  (e) Section 6.01(q) of the Credit Agreement is hereby amended
by deleting the reference to "$50,000,000" and inserting in lieu thereof
"$75,000,000".

                  (f) Section 6.02(n) of the Credit Agreement is hereby amended
by deleting the reference to "$250,000,000" and inserting in lieu thereof
"$350,000,000".

                  (g) The following is hereby added at the end of Section 6.02:
"(ff) Liens on assets of the Securitization Subsidiary in favor of any Foreign
Subsidiary securing intercompany Indebtedness or other obligations related to
the origination, servicing or collection of Receivables, Related Security or
Other Securitization Assets, in each case generated in connection with the
European operations of the Foreign Subsidiaries of the Company and the
Securitization Subsidiary."

                  (h) Section 6.04(g) of the Credit Agreement is hereby amended
by deleting the words "pursuant to the European Facility or Permitted
Receivables Financings" and inserting in lieu thereof: "in connection with the
European Facility or Permitted Receivables Financings (and, whether pursuant to
the European Facility or otherwise, the sale or disposition of Receivables, any
Related Security and any Other Securitization Assets, in each case generated in
connection with the European operations of the Foreign Subsidiaries of the
Company and the Securitization Subsidiary, by the Securitization Subsidiary)".

                  (i) Section 6.06(b) of the Credit Agreement is hereby amended
by inserting after the words " it being understood that": "(x)", and (ii)
inserting after the words "after the consummation of any such Capital
Expenditure": "and (y) if Adjusted EBITDA is negative, no adjustment shall be
made under this clause (i)".

                                       3
<PAGE>

                                                                SECOND AMENDMENT
                                                     TO VISTEON CREDIT AGREEMENT
                                                                     AND CONSENT

                  (j) Section 6.07(g) of the Credit Agreement is hereby amended
by inserting at the end thereof: "and between the Securitization Subsidiary and
Foreign Subsidiaries".

                  (k) Section 6.07(i) of the Credit Agreement is hereby amended
by inserting after the words " it being understood that" in clause (iv): "(x)",
and (ii) inserting after the words "after the consummation of any such
Investment": "and (y) if Adjusted EBITDA is negative, no adjustment shall be
made under this clause (iv)".

                  (l) The following is hereby added at the end of Section 6.07:
"(bb) (i) Investments received in connection with the sale, transfer or other
disposition of Receivables, any Related Security and any Other Securitization
Assets by the Securitization Subsidiary and (ii) the purchase or other
acquisition by, or transfer to the Securitization Subsidiary of Receivables, any
Related Security and any Other Securitization Assets, in each case generated in
connection with the European operations of the Foreign Subsidiaries of the
Company and the Securitization Subsidiary, in connection with the origination,
servicing or collection of such Receivables, Related Security or Other
Securitization Assets."

                  (m) Section 6.12 of the Credit Agreement is hereby amended by
inserting after the words "with any restrictions to apply only to the ":
"Securitization Subsidiary and the Foreign".

                  (n) Section 6.13 of the Credit Agreement is hereby amended by
inserting after the words "which restrictions shall apply only to the":
"Securitization Subsidiary and the Foreign".

                  (o) The following new Section 6.20 is hereby added at the end
of Article VI:

            Section 6.20 Business of Securitization Subsidiary. Permit the
      Securitization Subsidiary to (a) engage at any time in any business or
      business activity other than (i) to the extent it is a party to the
      European Facility, the performance of its obligations under and in
      connection with the underlying documents for the European Facility, (ii)
      the origination, collection and servicing of Receivables generated in
      connection with the European operations of the Foreign Subsidiaries of the
      Company, and activities necessary, related or incidental thereto, (iii)
      engaging in management functions, including, without limitation, managing
      contract manufacturing arrangements with respect to the Borrower's
      European business (iv) actions required to maintain its existence and (v)
      activities incidental to its maintenance and continuance and to the
      foregoing activities; or (b) incur any Indebtedness or sell, dispose of,
      grant a Lien on or otherwise transfer any of its assets except as
      permitted hereunder.

            Section 1.5 Amendment to Security Agreement. The Security Agreement
is hereby amended as follows:

                  (a) The defined term "Pledged Stock" in Section 1.3 of the
Security Agreement is hereby amended by deleting the words "the Capital Stock of
Halla Climate Control Corporation and its Subsidiaries," and inserting in lieu
thereof "any of the outstanding Capital Stock of any of the Subsidiaries of
Halla".

                                       4
<PAGE>

                                                                SECOND AMENDMENT
                                                     TO VISTEON CREDIT AGREEMENT
                                                                     AND CONSENT

                  (b) Section 2.1 of the Security Agreement is hereby amended by
deleting the words "(iii) any of the outstanding Capital Stock of Halla or any
of its Subsidiaries;" and inserting in lieu thereof "(iii) any of the
outstanding Capital Stock of any of the Subsidiaries of Halla;".

                  (c) Exhibit G of the Security Agreement is hereby amended and
restated in its entirety as set forth in Exhibit I hereto.

                                   ARTICLE II

                                     CONSENT

                  The Lenders hereby consent to each of (i) the Agreement to
Amend and Restate with respect to the Term Loan Facility in substantially the
form of Exhibit II hereto, (ii) the amendment and restatement of the Term Loan
Facility in substantially the form of Exhibit III hereto, and (iii) the
amendment of the Intercreditor Agreement to provide that the Capital Stock of
the "Securitization Subsidiary" (as defined in the Credit Agreement as amended
hereby) shall be Term Loan Priority Collateral (as defined in the Intercreditor
Agreement), and other amendments to the Intercreditor Agreement acceptable to
the Administrative Agent comforming with the provisions of this Amendment and
the Credit Agreement as amended hereby.

                                  ARTICLE III

                              CONDITIONS TO CLOSING

            The effectiveness of this Amendment is subject to the satisfaction
of the following conditions:

                  (a) Second Amendment. The Borrowers, the Administrative Agent
and the Required Lenders shall have delivered a duly executed counterpart of
this Amendment to the Administrative Agent.

                  (b) Administrative Agent Fees and Expenses. The Borrowers
shall have paid all costs and expenses then payable pursuant to Section 4.8
hereof or any other Loan Document with respect to this Amendment.

                  (c) Amendment Fee. The Borrowers shall have paid (i) the
amendment fee referred to in Section 4.9 hereof to the Administrative Agent for
the account of each Lender theretofore entitled thereto, and (ii) any other fee
then due and payable pursuant to any Loan Document.

                                   ARTICLE IV

                                  MISCELLANEOUS

            Section 4.1 Effect of Amendment. Except as expressly set forth
herein, this Amendment shall not by implication or otherwise limit, impair,
constitute a waiver of, or otherwise affect the rights and remedies of the
Administrative Agent or any Lender under the Loan Documents, and shall not
alter, modify, amend or in any way affect any of the terms, conditions,
obligations, covenants or agreements contained in the Loan Documents, all of
which are ratified and affirmed in all respects and shall continue in full force
and effect. Nothing herein

                                       5
<PAGE>

                                                                SECOND AMENDMENT
                                                     TO VISTEON CREDIT AGREEMENT
                                                                     AND CONSENT

shall be deemed to entitle the Borrowers to a consent to, or a waiver,
amendment, modification or other change of, any of the terms, conditions,
obligations, covenants or agreements contained in the Loan Documents in similar
or different circumstances. This Amendment is a Loan Document executed pursuant
to the Credit Agreement and shall be construed, administered and applied in
accordance with the terms and provisions thereof.

            Section 4.2 No Representations by Lenders or Administrative Agent.
The Borrowers hereby acknowledge that they have not relied on any
representation, written or oral, express or implied, by any Lender or the
Administrative Agent, other than those expressly contained herein, in entering
into this Amendment.

            Section 4.3 Representations of the Borrowers. Each Borrower
represents and warrants to the Administrative Agent and the Lenders that (a) the
representations and warranties set forth in the Loan Documents (including with
respect to this Agreement and the Credit Agreement as amended hereby) are true
and correct in all material respects on and as of the date hereof with the same
effect as though made on the date hereof, except to the extent that such
representations and warranties expressly relate to an earlier date, in which
event such representations and warranties were true and correct in all material
respects as of such date, and (b) no Default or Event of Default has occurred
and is continuing.

            Section 4.4 Successors and Assigns. This Amendment shall be binding
upon the parties hereto and their respective successors and assigns and shall
inure to the benefit of the parties hereto and the successors and assigns of the
Lenders and the Administrative Agent.

            Section 4.5 Headings; Entire Agreement. The headings and captions
hereunder are for convenience only and shall not affect the interpretation or
construction of this Amendment. This Agreement contains the entire understanding
of the parties hereto with regard to the subject matter contained herein.

            Section 4.6 Severability. The provisions of this Amendment are
intended to be severable. If for any reason any provision of this Amendment
shall be held invalid or unenforceable in whole or in part in any jurisdiction,
such provision shall, as to such jurisdiction, be ineffective to the extent of
such invalidity or unenforceability without in any manner affecting the validity
or enforceability thereof in any other jurisdiction or the remaining provisions
hereof in any jurisdiction.

            Section 4.7 Counterparts. This Amendment may be executed in any
number of counterparts, all of which taken together shall constitute one and the
same instrument, and any party hereto may execute this Amendment by signing any
such counterpart. Delivery of an executed counterpart of a signature page to
this Amendment by facsimile shall be effective as delivery of a manually
executed counterpart of this Amendment.

            Section 4.8 Costs and Expenses. Subject to the terms set forth in
Section 9.03 of the Credit Agreement, the Borrowers agree, jointly and
severally, to reimburse the Administrative Agent for reasonable, documented out
of pocket expenses incurred by the Administrative Agent and its Affiliates,
including the reasonable documented fees and other reasonable charges and
disbursements of one counsel for the Administrative Agent (and such other local
and foreign counsel as shall be reasonably required), in connection with this
Amendment.

                                       6
<PAGE>

                                                                SECOND AMENDMENT
                                                     TO VISTEON CREDIT AGREEMENT
                                                                     AND CONSENT

            Section 4.9 Amendment Fee. The Borrowers agree, jointly and
severally, to pay to the Administrative Agent for the benefit of each Lender who
delivers a duly executed counterpart of this Agreement to the Administrative
Agent on or before 5:00 PM New York time, April 5, 2007, a nonrefundable
amendment fee of 0.05% of each such Lender's existing Revolving Commitment.

            Section 4.10 Governing Law. The whole of this Amendment and the
rights and obligations of the parties hereto shall be governed, construed and
interpreted in accordance with the laws of the State of New York, but giving
effect to federal laws applicable to national banks.

              [Remainder of this page is intentionally left blank.]

                                       7

<PAGE>

                                                                SECOND AMENDMENT
                                                     TO VISTEON CREDIT AGREEMENT
                                                                     AND CONSENT

            IN WITNESS WHEREOF, the undersigned have caused this Amendment to be
duly executed and delivered as of the date first above written.

                                       BORROWERS:

                                       VISTEON CORPORATION

                                       By  /s/ Brian P. Casey
                                           -------------------------------------
                                           Name:  Brian P. Casey
                                           Title:  Treasurer

                                       ARS, INC.

                                       By  /s/ Brian P. Casey
                                           -------------------------------------
                                           Name:  Brian P. Casey
                                           Title:  Treasurer

                                       FAIRLANE HOLDINGS, INC.

                                       By  /s/ Brian P. Casey
                                           -------------------------------------
                                           Name:  Brian P. Casey
                                           Title:  Treasurer

                                       HALLA CLIMATE SYSTEMS ALABAMA CORP.

                                       By  /s/ Brian P. Casey
                                           -------------------------------------
                                           Name:  Brian P. Casey
                                           Title:  Treasurer

                                       INFINITIVE SPEECH SYSTEMS CORP.

                                       By  /s/ Brian P. Casey
                                           -------------------------------------
                                           Name:  Brian P. Casey
                                           Title:  Treasurer

<PAGE>

                                                                SECOND AMENDMENT
                                                     TO VISTEON CREDIT AGREEMENT
                                                                     AND CONSENT

                                       LTD PARTS, INCORPORATED

                                       By  /s/ Brian P. Casey
                                           -------------------------------------
                                           Name:  Brian P. Casey
                                           Title:  Treasurer

                                       SUNGLAS, LLC

                                       By  /s/ Brian P. Casey
                                           -------------------------------------
                                           Name:  Brian P. Casey
                                           Title:  Treasurer

                                       VC AVIATION SERVICES, LLC

                                       By  /s/ Brian P. Casey
                                           -------------------------------------
                                           Name:  Brian P. Casey
                                           Title:  Treasurer

                                       VC REGIONAL ASSEMBLY & MANUFACTURING, LLC

                                       By  /s/ Brian P. Casey
                                           -------------------------------------
                                           Name:  Brian P. Casey
                                           Title:  Treasurer

                                       VISTEON AC HOLDINGS CORP.

                                       By  /s/ Brian P. Casey
                                           -------------------------------------
                                           Name:  Brian P. Casey
                                           Title:  Treasurer

                                       VISTEON ASIA HOLDINGS, INC.

                                       By  /s/ Brian P. Casey
                                           -------------------------------------
                                           Name:  Brian P. Casey
                                           Title:  Treasurer

                                       2
<PAGE>

                                                                SECOND AMENDMENT
                                                     TO VISTEON CREDIT AGREEMENT
                                                                     AND CONSENT

                                       VISTEON AUTOMOTIVE HOLDINGS, LLC

                                       By  /s/ Brian P. Casey
                                           -------------------------------------
                                           Name:  Brian P. Casey
                                           Title:  Treasurer

                                       VISTEON CLIMATE CONTROL SYSTEMS LIMITED

                                       By  /s/ Brian P. Casey
                                           -------------------------------------
                                           Name:  Brian P. Casey
                                           Title:  Treasurer

                                       VISTEON DOMESTIC HOLDINGS, LLC

                                       By  /s/ Brian P. Casey
                                           -------------------------------------
                                           Name:  Brian P. Casey
                                           Title:  Treasurer

                                       VISTEON EUROPEAN HOLDINGS CORPORATION

                                       By  /s/ Brian P. Casey
                                           -------------------------------------
                                           Name:  Brian P. Casey
                                           Title:  Treasurer

                                       VISTEON GLOBAL TECHNOLOGIES, INC.

                                       By  /s/ Brian P. Casey
                                           -------------------------------------
                                           Name:  Brian P. Casey
                                           Title:  Treasurer

                                       VISTEON GLOBAL TREASURY, INC.

                                       By  /s/ Brian P. Casey
                                           -------------------------------------
                                           Name:  Brian P. Casey
                                           Title:  President and Treasurer

                                       3
<PAGE>

                                                                SECOND AMENDMENT
                                                     TO VISTEON CREDIT AGREEMENT
                                                                     AND CONSENT

                                       VISTEON HOLDINGS, LLC

                                       By  /s/ Brian P. Casey
                                           -------------------------------------
                                           Name:  Brian P. Casey
                                           Title:  Treasurer

                                       VISTEON INTERNATIONAL BUSINESS
                                       DEVELOPMENT, INC.

                                       By  /s/ Brian P. Casey
                                           -------------------------------------
                                           Name:  Brian P. Casey
                                           Title:  Treasurer

                                       VISTEON INTERNATIONAL HOLDINGS, INC.

                                       By  /s/ Brian P. Casey
                                           -------------------------------------
                                           Name:  Brian P. Casey
                                           Title:  Treasurer

                                       VISTEON LA HOLDINGS CORP.

                                       By  /s/ Brian P. Casey
                                           -------------------------------------
                                           Name:  Brian P. Casey
                                           Title:  Treasurer

                                       VISTEON SYSTEMS, LLC

                                       By  /s/ Brian P. Casey
                                           -------------------------------------
                                           Name:  Brian P. Casey
                                           Title:  Treasurer

                                       VISTEON TECHNOLOGIES, LLC

                                       By  /s/ Brian P. Casey
                                           -------------------------------------
                                           Name:  Brian P. Casey
                                           Title:  Treasurer

                                       4
<PAGE>

                                                                SECOND AMENDMENT
                                                     TO VISTEON CREDIT AGREEMENT
                                                                     AND CONSENT

                                       TYLER ROAD INVESTMENTS, LLC

                                       By  /s/ Brian P. Casey
                                           -------------------------------------
                                           Name:  Brian P. Casey
                                           Title:  Treasurer

                                       5
<PAGE>

                                                                SECOND AMENDMENT
                                                     TO VISTEON CREDIT AGREEMENT
                                                                     AND CONSENT

                                       JPMORGAN CHASE BANK, N.A.
                                       as Administrative Agent, Swingline
                                       Lender, Issuing Bank, and Lender

                                       By: /s/ Robert P. Kellas
                                           -------------------------------------
                                       Name:  Robert P. Kellas
                                       Title:  Executive Director

<PAGE>

                                                                SECOND AMENDMENT
                                                     TO VISTEON CREDIT AGREEMENT
                                                                     AND CONSENT

                                       BANK OF AMERICA, N.A.

                                       By: /s/ Robert J. Lund
                                           -------------------------------------
                                       Name:  Robert J. Lund
                                       Title:  Senior Vice President

<PAGE>

                                                                SECOND AMENDMENT
                                                     TO VISTEON CREDIT AGREEMENT
                                                                     AND CONSENT

                                       CITIBANK, N.A.

                                       By: /s/ Christine M. Kanicki
                                           -------------------------------------
                                       Name:  Christine M. Kanicki
                                       Title:  Attorney - In - Fact

<PAGE>

                                                                SECOND AMENDMENT
                                                     TO VISTEON CREDIT AGREEMENT
                                                                     AND CONSENT

                                       CITICORP USA, INC.

                                       By: /s/ Jeffrey Nitz
                                           -------------------------------------
                                       Name:  Jeffrey Nitz
                                       Title:  Director<PAGE>

                                                                    EXHIBIT 10.1

                          THE TECUMSEH PRODUCTS COMPANY
                             KEY EMPLOYEE BONUS PLAN

I.   PLAN OBJECTIVES

This Key Employee Bonus Plan (the "Plan") applies to certain management
employees of Tecumseh Products Company (the "Company") and its subsidiaries and
related entities to the extent any of those entities constitute Participating
Employers as provided herein. The overall purpose of the Plan is to motivate and
reward certain management employees for achievement of identified corporate and
individual goals.

II.  GENERAL PROVISIONS

1.   The Plan covers key management employees that are selected and approved for
     participation by the Company's Board of Directors, in its discretion and
     for a particular year, and identified on the attached Schedule A, as may be
     amended from time to time in accordance with this Plan ("Key Employees");
     provided, that the president of the Company (the "President"), in his
     discretion and for a particular year, may, with the approval of the Board
     of Directors of the Company, select and add Key Employees to Schedule A
     from time to time. Except as specifically provided herein, at no time,
     subsequent to the execution of an Individual Performance Incentive Plan as
     provided in Section III, Paragraph 4 of this Plan, can a Key Employee's
     prior selection and approval for participation in this Plan for a
     particular year be changed in any way without the consent of the Key
     Employee.

2.   This Plan is not an amendment or restatement of any other plan or
     arrangement; however, a Key Employee's participation in this Plan will
     preclude any awards in the Tecumseh Products Company Management Incentive
     Plan, Key Incentive Plan or Key Employee Performance Incentive Plan that
     might otherwise be awarded to him in those plans for the same time period
     in which a Key Employee has been granted a Potential Bonus (as defined in
     Section III) from this Plan, regardless of whether the Potential Bonus is
     actually earned and distributed to the Key Employee.

3.   The employer providing any distribution resulting from a Potential Bonus
     shall withhold all Federal, state, local, or other taxes, required pursuant
     to any law or regulation or ruling, from any amount which is ultimately
     payable to a Key Employee under this Plan. Neither the Company nor any
     Participating Employers will be responsible for any Key Employee's personal
     income or other taxes resulting from any awards made under the Plan.

4.   The death or disability of a Key Employee shall not cause an automatic
     forfeiture of any Potential Bonus under this Plan.

5.   The Key Employee will forfeit the entire unpaid portion of a Potential
     Bonus under the Plan if he resigns or announces his intent to resign prior
     to the Potential Bonus becoming earned and distributed. Any Potential Bonus
     that is forfeited shall not be allocated to other Key Employees
     participating in the Plan. The forfeiture provisions of this Section II,
     Paragraph 5 shall also apply in the event that the employment of a Key
     Employee terminates for any of the following reasons:

     a.   The willful and continued failure of the Key Employee to perform
          substantially his duties owed to his employer or the Company after a
          written demand for substantial performance is delivered to the

<PAGE>

          Key Employee, specifically identifying the nature of the unacceptable
          performance, provided that the situation remains uncorrected for 30
          days; or

     b.   The Key Employee's conviction of a felony.

     If the employment of a Key Employee terminates due to circumstances not
     specifically provided above in this Section II, Paragraph 5 (e.g., death or
     disability), the President shall have sole discretion (subject to final
     approval as provided in Section III) to deem a Potential Bonus previously
     granted to a Key Employee to be earned and payable as if he achieved some
     or all of the Individual Performance Incentive Plan, as provided herein.
     The President's discretion in making such determination shall be based
     primarily on whether the Key Employee's performance was consistent with the
     achievement of the applicable goal based on the progress at the time of
     termination. If the Key Employee whose employment terminates due to
     circumstances consistent with the initial sentence to this flush Paragraph
     5 of this Section II (e.g., death or disability) is an Executive Officer,
     any discretionary decisions to be made by the President under this flush
     Paragraph shall be made by the Committee (which shall consider the
     recommendations of the President).

6.   The validity, interpretation, construction, and performance of this Plan
     shall be governed by the laws of the State of Michigan without reference to
     conflicts of laws principles.

7.   A change in control of the Company or any of its subsidiaries or related
     entities shall have no affect on the Plan.

8.   The invalidity or unenforceability of any provision of this Plan shall not
     affect the validity or enforceability of any other provision.

9.   The headings of this Plan are not part of its provisions and shall have no
     force or effect.

10.  Any references in this Plan to the masculine or feminine pronouns shall be
     deemed to refer to the other when applicable unless a different meaning is
     plainly required by the context.

III. DETAILED PLAN PROVISIONS

1.   Awards. All potential awards that can be earned by a Key Employee under
     this Plan for a particular year ("Potential Bonus") will be set forth in
     his Individual Performance Incentive Plan ("Individual Plan") and on
     Schedule A.

2.   Entity Goals. Subject to Paragraph 14 of this Section 3, for any years in
     which this Plan is operative, the President shall establish the goals at
     the Company or employer level (including for Participating Employers) and
     the amount of the Potential Bonus attributable to those goals that can be
     earned by the respective Key Employee.

3.   Individual Goals. Subject to Paragraph 14 of this Section 3, in his sole
     discretion, the President may, if he deems appropriate, establish up to
     four (4) individual goals for any Key Employee ("Individual Goals"); in
     that case, the President shall also establish the appropriate measurement
     for each Individual Goal and the applicable percentages (i.e., weight)
     allocated to each Individual Goal. The President may consider suggestions
     from the Key Employee when establishing individual goals and measurements.

4.   Individual Plan. The President and the Key Employee shall execute an
     Individual Plan. If an Individual Plan is not executed by the President and
     the Key Employee, no Potential Bonus will be deemed granted nor may a
     Potential Bonus become earned or payable with respect to that Key

<PAGE>

     Employee, notwithstanding the Key Employee's inclusion on Schedule A. Each
     Individual Plan and Potential Bonus shall apply only to the specific
     calendar year designated. An additional Potential Bonus may be granted for
     future calendar years according to the terms herein.

5.   Earning a Potential Bonus. Determinations as to whether the particular
     goals of a Key Employee have been met and as to whether a Potential Bonus
     has been earned and will be distributed shall be determined by the
     President based on the goals, Individual Plan and other relevant criteria
     and approved by the Committee prior to distribution; provided, that, if an
     "executive officer" (as defined under the rules of the Securities and
     Exchange Commission, and hereinafter referred to as an "Executive Officer")
     is participating as a Key Employee in the Plan, determinations as to
     whether the particular goals set for that Executive Officer have been met
     and as to whether a Potential Bonus has been earned and will be distributed
     shall be determined by the Committee (which shall consider the
     recommendations of the President) based on the goals, Individual Plan and
     other relevant criteria.

6.   Distribution. Amounts due under the Plan shall be paid in a lump sum not
     later than the March 15 immediately following the close of the calendar
     year to which a Potential Bonus relates.

7.   Corporate assets. This Plan constitutes a mere unsecured benefit and any
     assets used for distribution are simply part of the general assets of the
     entities participating herein that are subject to the claims of its
     respective general creditors. In the event that this Plan is deemed to be
     governed by ERISA, it is expressly intended that this arrangement shall be
     unfunded for tax purposes and for purposes of Title I of ERISA.

8.   Administration.

     a.   This Plan shall be administered by the Governance, Compensation and
          Nominating Committee of the Company's Board of Directors (the
          "Committee"), and the Committee may nominate, or otherwise delegate,
          to the President or another party, the function of Plan Administrator.

     b.   The Administrator is expressly empowered to interpret the Plan,
          determine all questions arising in the administration, interpretation,
          and application of the Plan (and any such determination shall be
          entitled to the maximum deference provided for under law), employ
          professionals and other persons it deems necessary, request
          information deemed necessary, and to take all other necessary and
          proper actions to fulfill its duties as Administrator. All decisions
          with respect to the Plan shall be made by the Administrator in its
          sole and final discretion, whose decision shall be final, binding, and
          conclusive upon all persons.

     c.   The office of the Administrator shall not be liable for any actions by
          it hereunder, unless due to its own gross negligence, willful
          misconduct, or lack of good faith.

9.   Claims.

     a.   Neither Key Employees or their successors, heirs, personal
          representatives or other similar parties shall have any right to audit
          the Plan or amounts payable or alleged to be payable. Notwithstanding
          the preceding sentence, in the event that a final legal authority
          authorizes any challenge to the Plan or to any Potential Bonus or
          distribution, any such challenge shall be permitted to be made with
          respect to this Plan only as provided in this Section III, Paragraph 9
          and only if made in writing and personally delivered or mailed,
          certified mail, return receipt requested, to the Company's
          headquarters, attn: Administrator of The Tecumseh Products Company Key
          Employee Bonus Plan.

<PAGE>

     b.   Any claim shall state the claimants name and address, the specific
          basis for the claim, and any additional materials that the claimant
          desires to present. The claim will be promptly reviewed and if the
          claim is wholly or partially denied, the Administrator will furnish
          the claimant with a notice of its decision within 90 days after its
          receipt of the claim. The written notice will provide the specific
          reason or reasons for denial, specific reference to the reason(s) or
          provision(s) of the Plan upon which the denial is based, a description
          of any material or information necessary to perfect the claim and an
          explanation why such material or information is necessary, and copy of
          the Plan's claim review procedure. If notice is not received within
          the 90-day period, the claimant shall consider the claim to be denied.

     c.   The claimant may request review of the denial within 60 days after the
          denial of the claim. The written request must state with specificity
          the reasons for requesting review, may contain issues and comments,
          and may further state why the claimant believes that the
          Administrator's decision was incorrect.

     d.   The claimant may make a request for a hearing. The Administrator, in
          its sole discretion, may, but is not required to, convene a hearing to
          consider matters raised in the application. If a hearing is granted,
          the claimant is entitled to be represented by legal counsel or other
          duly authorized representative, to request, at his or her expense, the
          presence of a court reporter for the taking of a transcript of the
          hearing, and to cross-examine the witnesses. Not later than 60 days
          after receipt by the Administrator, a decision will be made, unless
          special circumstances apply (and the claimant is given written notice
          during such period), in which case a decision will be made as soon as
          possible, but not later than 120 days after receipt of the application
          for review. The decision on the application will be in writing and
          will include reasons for the decision with specific references to the
          pertinent reason(s) or provision(s) of the Plan on which the decision
          is based. The decision of the Administrator shall be final and binding
          60 days after denial of the claim, or upon the claimant's receipt of
          the Administrator's decision on the application for review.

10.  No Assignment. Other than by the laws of descent or distribution, awards
     under this Plan shall not be subject in any manner to anticipation,
     alienation, sale, transfer, assignment, pledge, encumbrance, attachment, or
     garnishment by creditors of the Key Employee or his or her beneficiary,
     whether voluntary or involuntary, and any attempt to so anticipate,
     alienate, sell, transfer, assign, pledge, encumber, attach, or garnish the
     same shall not be valid and shall cause a forfeiture of the Potential Bonus
     or resulting distribution to which it pertains. This Plan shall be binding
     on any entity succeeding to, surviving, or purchasing a majority of the
     assets or stock of the Company or a Participating Employer.

11.  No Employment Rights. Participation in this Plan shall not be construed to
     confer upon any person the legal right to be retained in the employ of his
     employer, or give any person, any right to any payment whatsoever, except
     to the extent of the benefits provided for hereunder. Each Key Employee
     shall remain subject to discharge to the same extent as if this Plan had
     never been adopted.

12.  Amendment and Termination. The Company shall have the sole authority to
     amend or terminate this Plan at any time. An amendment of this Plan shall
     be in writing and signed by the Company.

13.  Participating Employers. With proper authorization from the Company, any of
     the Company's subsidiaries or related entities may adopt this Plan;
     provided, that employees of the Participating Employer will only be
     eligible to participate in the Plan as a Key Employee pursuant to the
     procedures set forth herein. Any such entity shall be known as a
     "Participating Employer" and shall be bound by the terms of this Plan and
     its procedures, including the authorities and duties assigned to the
     Company and its officers. A Participating Employer shall be responsible for
     providing the distribution and

<PAGE>

     corresponding monies resulting from a Potential Bonus that is deemed earned
     and payable and that is related to any Key Employee that is participating
     in this Plan to the extent that the Key Employee is employed by the
     Participating Employer.

14.  Executive Officers. Notwithstanding anything to the contrary contained
     herein, in the event that an Executive Officer is participating in this
     Plan as a Key Employee, the Potential Bonus, goals, measurements and
     percentages applicable to that Executive Officer (as provided in Section
     III, Paragraph 2 and 3) shall be established by the Committee. With respect
     to establishing the Potential Bonus, goals, measurements and percentages
     for each Executive Officer participating in this Plan as a Key Employee,
     the Committee shall consider recommendations by the President and such
     other recommendations and/or factors as the Committee may deem appropriate.

          IN WITNESS WHEREOF, The Company has caused this instrument to be
executed by its duly authorized officer as of the ____________ day of April,
2007, to be effective as of an even date herewith.

                                        TECUMSEH PRODUCTS COMPANY

                                        By:
                                            ------------------------------------
                                        Print name:
                                                    ----------------------------
                                        Title:
                                               ---------------------------------

                                        Participating Employer:

                                        ----------------------------------------

                                        By:
                                            ------------------------------------
                                        Print name:
                                                    ----------------------------
                                        Title:
                                               ---------------------------------
                                        Date:
                                              ----------------------------------

<PAGE>

                                        Participating Employer:

                                        ----------------------------------------

                                        By:
                                            ------------------------------------
                                        Print name:
                                                    ----------------------------
                                        Title:
                                               ---------------------------------
                                        Date:
                                              ----------------------------------

                                        Participating Employer:

                                        ----------------------------------------

                                        By:
                                            ------------------------------------
                                        Print name:
                                                    ----------------------------
                                        Title:
                                               ---------------------------------
                                        Date:
                                              ----------------------------------

                                        Participating Employer:

                                        ----------------------------------------

                                        By:
                                            ------------------------------------
                                        Print name:
                                                    ----------------------------
                                        Title:
                                               ---------------------------------
                                        Date:
                                              ----------------------------------

<PAGE>

                                   SCHEDULE A
                                     TO THE
                            TECUMSEH PRODUCTS COMPANY
                             KEY EMPLOYEE BONUS PLAN

<TABLE>
<CAPTION>
Key Employee                         Year                        Potential Bonus
------------                         ----                        ---------------
<S>                                  <C>                         <C>

</TABLE>

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00121-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00121-of-00352.parquet"}]]