Document:

<PAGE>
                                                                    EXHIBIT 10.2

                          SEVERANCE BENEFIT AGREEMENT

         THIS SEVERANCE BENEFIT AGREEMENT (the "Agreement") is made and entered
into this 5th day of April, 2002, by and between COLLINS & AIKMAN CORPORATION, a
Delaware corporation (the "Company"), and JONATHAN PEISNER ("Executive").

                              Statement of Purpose

         The Company wishes to encourage the continued service and dedication of
Executive by providing Executive with severance benefits if his employment with
the Company is terminated for certain reasons, as described herein.

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

         1. Term of Agreement. The initial term of this Agreement shall extend
for a period of two years, commencing on the date hereof and ending April 4,
2004. At the end of such initial two year term, unless the Company shall have
given Executive 60 days prior written notice of its intention to terminate this
Agreement at the end of the initial term hereof, the term of this Agreement
shall automatically be extended by an additional one year period. Thereafter,
unless the Company shall have given Executive 60 days prior written notice of
its intention to terminate this Agreement at the end of the term then in effect,
the term of this Agreement shall automatically be extended by an additional one
year period.

         2. Definitions. For purposes of this Agreement, the following terms
shall have the following meanings:

        (a) Constructive Termination means the Executive's termination of his
employment with the Company and its subsidiaries at any time during the 90 day
period beginning on:

                (i) the termination of this Agreement at the end of the term
        then in effect;

                (ii) the involuntary relocation of Executive to any office or
        location more than fifty (50) miles from the office or location at which
        Executive is then located;

               (iii) a material reduction in Executive's total compensation and
         benefits package; or

                                       1

<PAGE>

               (iv) a significant reduction in Executive's responsibilities,
         position or authority (including changes resulting from the assignment
         to Executive of any duties inconsistent with his responsibilities,
         position or authority);

provided, however, that, notwithstanding any other provision hereof, no event or
circumstance described in clause (iii) or (iv) above shall rise to a
"Constructive Termination" for purposes of this Agreement unless Executive shall
have given notice to the Company of Executive's determination of the occurrence
of an event specified in clause (iii) or (iv) above and such event shall be
continuing as of the end of 45 days after the giving of such notice.

        (b) Date of Termination means the later of (i) the date of receipt of
the Notice of Termination by the Company or Executive, as the case may be, or
(ii) any later date specified therein (which shall be not more than 30 days
after the giving of such notice).

        (c) Involuntary Termination means a termination of Executive's
employment by the Company other than a Termination For Cause or by reason of
Executive's death or disability.

        (d) Notice of Termination means a written notice which (i) indicates the
specific termination provision in this Agreement relied upon, (ii) sets forth in
reasonable detail the facts and circumstances claimed to provide the basis for
termination of Executive's employment under the provision so indicated, and
(iii) if the termination date is other than the date of receipt of such notice,
specifies the termination date (which shall be not more than 30 days after the
giving of such notice).

        (e) Termination For Cause means a termination of Executive's employment
by the Company as a result of:

                (i) fraud or misappropriation with respect to any business of
        the Company or intentional material damage to any property or business
        of the Company or an affiliate of the Company;

                (ii) willful failure by Executive to perform his duties and
        responsibilities and to carry out his authority;

                (iii) willful malfeasance or misfeasance or breach of fiduciary
        duty or representation to the Company or its owners or an affiliate of
        the Company;

                (iv) willful failure to act in accordance with any specific
        lawful instructions of the Chairman and CEO or a majority of the Board
        of Directors of the Company; or

                                       2

<PAGE>

                (v) conviction of Executive of a felony.

        3.  Benefits Upon Involuntary Termination or Constructive Termination.
In the event of an Involuntary Termination or Constructive Termination of
Executive, the Company shall pay to Executive the following benefits and no
other salary, bonus, benefits or other compensation:

        (a) to the extent not theretofore paid, Executive's base salary through
the Date of Termination;

        (b) any unpaid cash bonus Executive is entitled to receive for the prior
fiscal year of the Company;

        (c) Executive's accrued and vested benefits under employee benefit plans
sponsored by the Company;

        (d) a pro-rata bonus under the Executive Incentive Compensation Plan for
the current fiscal year (based on the number of months of such fiscal year
preceding the Date of Termination over twelve (12);

        (e) Executive's base salary for the greater of 24 months or the
remaining term of this Agreement, based on the rate of base salary in effect
immediately preceding the Date of Termination, which shall be paid to Executive
on a periodic basis in accordance with the Company's normal pay practices
commencing with the first payroll payment date following the Date of
Termination;

        (f) all of Executive's benefits and perquisites with the Company in
effect immediately prior to the Date of Termination (other than short and long
term disability insurance) until the earlier of (i) the expiration of the
payment period for the amount due under this Section (3(e) or (ii) the date
Executive becomes employed by another employer; and

         (g) outplacement services for a reasonable period of time following the
Date of Termination, the provider of which shall be selected by the Company.

Notwithstanding the foregoing, the Company shall not be obligated to pay or
provide Executive any amount or benefit pursuant to Section 3(d), 3(f), or 3(g),
unless Executive executes and delivers to the Company a release of the parties
set forth in Section 4 hereof, such release to be dated as of the Date of
Termination and to contain the provisions set forth in Section 4 hereof.

        4.  Release. In consideration of the severance benefits available in
certain events pursuant to this Agreement, Executive unconditionally releases
the Company and its subsidiaries and affiliates and directors, officers,
employees and stockholders thereof, from any and all claims, liabilities and
obligations of

                                       3

<PAGE>

any nature pertaining to the terms of his employment or the termination of
employment other than those explicitly provided for by this Agreement including,
without limitation, any claims arising out of alleged legal restrictions on the
Company's rights to terminate its employees, such as any termination contrary to
public policy or to laws prohibiting discrimination (including without
limitation, the Age Discrimination in Employment Act).

         5. Non-Exclusivity of Rights. Nothing in this Agreement shall prevent
or limit Executive's continuing or future eligibility or participation in any
benefit, bonus, incentive or other plan provided by the Company and for which
Executive may qualify, nor shall anything herein limit or otherwise affect such
rights as Executive may have under any stock option or other agreements with the
Company. Amounts which are vested benefits or which Executive is otherwise
entitled to receive under any plan or program of the Company subsequent to the
Date of Termination shall be payable otherwise entitled to receive under any
plan or program of the Company subsequent to the Date of Termination shall be
payable in accordance with such plan or program.

         6. Succession. This Agreement shall inure to the benefit of and shall
be binding upon the Company and its successors and assignees, but, without the
prior written consent of Executive, this Agreement may not be assigned other
than in connection with a merger, sale, consolidation or similar transaction of
all or substantially all of the business and/or assets of the Company in which
the successor or assignee assumes (whether by operation of law or express
assumption) all obligations of the Company hereunder. The Company shall require
any successor to assume and agree to perform this Agreement in the same manner
and to the same extent that the Company would be required to perform it if no
such succession had taken place. The obligations and duties of Executive
hereunder shall be personal and not assignable otherwise than by the laws of
descent and distribution.

         7. Non-disparagement. Employee shall at all times refrain from taking
any action or making any statements, written or oral, which are intended to and
do disparage the goodwill or reputation of the Company or any of its
subsidiaries or affiliates or any directors or officers thereof or which could
adversely affect the morale of employees of the Company or its subsidiaries.

         8. Non-Competition. Employee shall not Compete in North America (as
hereinafter defined) with the Company or any of its subsidiaries or affiliates
in any way during the terms of his employment with the Company and for the 24
month period following the Date of Termination (the "Restricted Period").
"Compete" means to engage in any business activity whatsoever related to the
automotive interior systems or convertible roof systems businesses of the
Company or any of its subsidiaries or affiliates. Without limiting the
generality of the foregoing, Employee shall not, during the Restricted Period,
directly or indirectly (whether for compensation or otherwise), alone or as an
agent,

                                       4
<PAGE>

principal, partner, officer, employee, trustee, director, shareholder or in any
other capacity, own, manage, operate, join, control or participate in the
ownership, management, operation or control of, or furnish any capital to, or be
connected in any manner with, or provide any services as a consultant for, any
business which Competes with the Company or any of its subsidiaries of
affiliates in the automotive interior systems or convertible roof systems
business; provided, however, that notwithstanding the foregoing, nothing
contained in the Agreement shall be deemed to preclude Employee from owning not
more than 5% of the publicly traded securities of any entity which Competes with
the Company.

         9. Non-Solicitation. Employee covenants and agrees that he will not,
during the Restricted Period, (i) solicit, employ or otherwise engage as an
employee, independent contractor or otherwise, any person who is or was an
employee of the Company or any of its subsidiaries or affiliates at any time
during the 24 month period immediately preceding Employee's Date of Termination,
(ii) induce or attempt to induce any employee of the Company or any of its
subsidiaries or affiliates to terminate such employment or (iii) interfere with
the relationship of the Company or any of its subsidiaries or affiliates with
any person, including any person who, at any time during the 24 month period
immediately preceding Employee's Date of Termination, was an employee,
contractor, supplier or customer of the Company or any of its subsidiaries or
affiliates.

         10.  Miscellaneous.

         (a)  Applicable Law. This Agreement shall be governed, construed and
interpreted in accordance with the laws of the State of Michigan.

         (b)  Notices. All notices and communications hereunder shall be in
writing and shall be given by hand delivery to the other party by registered or
certified mail, return receipt requested, postage prepaid, or by overnight mail,
addressed as follows:

         If to Executive:

              Mr. Jonathan Peisner
              6084 Pickwood Drive
              West Bloomfield, Michigan 48322

         If to the Company:

              Collins & Aikman Corporation
              250 Stephenson Hwy
              Troy, Michigan, 48083
              Attention: Sr. Vice President, Human Resources

                                       5
<PAGE>

or to such other address as either party shall have furnished to the other in
writing in accordance herewith. Notice and communications shall be effective
when actually received by the addressee.

        (c)   Validity. the invalidity or unenforceability of any provision of
this contract shall not affect the validity or enforceability of any other
provision of this Agreement.

        (d)   Tax Withholding. The Company may withhold from any amounts payable
under this Agreement such federal, state and local taxes as shall be required to
be withheld pursuant to any applicable law or regulation.

        (e)   Waiver. The waiver of the breach of any term or of any condition
of this Agreement shall not be deemed to constitute the waiver of any other
breach of the same or any other term or condition hereof.

        (f)   Entire Agreement. This instrument contains the entire agreement of
the parties relating to the subject matter hereof, and it replaces and
supersedes any prior agreements between the parties relating to said subject
matter. No modifications of this Agreement shall be valid unless made in writing
and signed by the parties hereto.

        (g)   No Right of Employment. Executive and the Company acknowledge that
the employment of Executive by the Company is "at will" and may be terminated by
either Executive or the Company at any time.

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

                                 EXECUTIVE:

                                 -----------------------------
                                 Jonathan Peisner

                                 ------------------------------
                                 Dated

                                 COMPANY:

                                 COLLINS & AIKMAN CORPORATION

                                 By:
                                         --------------------------
                                         Gregory L. Tinnell
                                         Senior Vice President, Human Resources

                                         --------------------------
                                         Dated<PAGE>
                                                                     EXHIBIT 10a

                                                                  EXECUTION COPY

                                 AMENDMENT NO. 3
                                       TO
             AMENDED AND RESTATED 5-YEAR REVOLVING CREDIT AGREEMENT

          This AMENDMENT NO. 3 TO AMENDED AND RESTATED 5-YEAR REVOLVING CREDIT
AGREEMENT (the "AMENDMENT") dated as of June 26, 2002 is among ArvinMeritor,
Inc., an Indiana corporation (the "COMPANY"), Meritor Automotive Canada, Inc., a
company organized under the laws of Canada, Arvin Finance Ireland, a company
organized under the laws of Ireland, Meritor Heavy Vehicle Systems Limited, a
company organized under the laws of the United Kingdom (collectively with the
Company referred to as the "BORROWERS") and the "Lenders" and the "Agents"
signatory hereto (each as defined in the "Credit Agreement" referred to below).
Defined terms used herein and not otherwise defined herein shall have the
meanings given to them in the Credit Agreement.

          WHEREAS, the Borrowers, the Lenders and the Agents are parties to that
certain Amended and Restated 5-Year Revolving Credit Agreement dated as of June
27, 2001 (as amended by Amendment No. 1 thereto dated as of September 30, 2001
and by Amendment No. 2 thereto dated as of February 1, 2002, the "CREDIT
AGREEMENT") among the Borrowers, the other Foreign Subsidiary Borrowers from
time to time party thereto, the Lenders from time to time party thereto, Bank
One, NA, in its capacity as administrative agent for itself and the other
"Lenders" under the "Credit Agreement" (each as hereinafter defined) (the
"ADMINISTRATIVE AGENT"), JP Morgan Chase Bank (successor to The Chase Manhattan
Bank), in its capacity as syndication agent for itself and the other Lenders
under the Credit Agreement (the "SYNDICATION AGENT") and Citicorp USA, Inc. and
Bank of America, N.A. (collectively, the "DOCUMENTATION AGENTS"; the
Administrative Agent, the Syndication Agent and the Documentation Agents being
referred to collectively as the "AGENTS");

          WHEREAS, the Borrowers have requested that the Agents and the Lenders
amend certain provisions of the Credit Agreement; and

          WHEREAS, the Borrowers, the Agents and the Lenders have agreed to
enter into this Amendment on the terms and conditions set forth herein.

          NOW, THEREFORE, in consideration of the premises set forth above, and
for other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the Borrowers, the Lender and the Agents agree as
follows:

          1. Amendments. Effective as of the date first above written and
subject to the satisfaction of the conditions precedent set forth in Section 2
below, the Credit Agreement shall be and hereby is amended as follows:

          1.1. To the extent not otherwise specifically set forth herein, (i)
     each reference to "The Chase Manhattan Bank" in the Credit Agreement shall
     be replaced with a reference to "JP Morgan Chase Bank (successor to The
     Chase Manhattan Bank)" and (ii) each reference to "Chase" shall be replaced
     with a reference to "JP Morgan".
<PAGE>
          1.2. Section 1.1 of the Credit Agreement is hereby amended to delete
     the definitions for "Chase" and "364-Day Revolving Credit Agreement" in
     their entirety.

          1.3. Section 1.1 of the Credit Agreement is hereby amended to add the
     following new definitions in the appropriate alphabetical location:

               "JP Morgan" means JP Morgan Chase Bank, in its individual
          capacity, and its successors.

               "3-Year Revolving Credit Agreement" means that certain 3-Year
          Revolving Credit Agreement, dated as of June 26, 2002, among the
          Company, the lenders from time to time parties thereto, Bank One, NA,
          having its principal office in Chicago, Illinois, as Administrative
          Agent, JP Morgan Chase Bank, as Syndication Agent, and Deutsche Bank
          Securities Inc., Citicorp USA, Inc. and UBS Warburg LLC , as
          Documentation Agents, as the same may be amended, restated,
          supplemented or otherwise modified and as in effect from time to time.

               "Significant Subsidiary" means any Subsidiary that would be a
          "Significant Subsidiary" within the meaning of Rule 1-02 of the
          Security Exchange Commission's Regulation S-X, as amended and in
          effect from time to time.

               "Synthetic Lease" means a financing structure that qualifies as
          an operating lease for financial reporting purposes under Agreement
          Accounting Principles, but is considered a loan for tax purposes.

               "Synthetic Lease Obligations" means any liabilities under any
          Synthetic Lease.

               "Third Amendment Effective Date" means June 26, 2002.

          1.4. The following definitions in Section 1.1 of the Credit Agreement
     are hereby amended and restated in their entirety as follows:

               "Agreement Accounting Principles" means generally accepted
          accounting principles as in effect on June 1, 2001 in the United
          States; provided that, if any changes in generally accepted accounting
          principles are required or permitted and are adopted by the Company or
          any of its Subsidiaries with the agreement of its independent
          certified public accountants after the Third Amendment Effective Date
          and such changes result in a change in the method of calculation of
          any of the financial covenants, tests, restrictions or standards
          herein or in the related definitions or terms used therein
          ("Accounting Changes"), the parties hereto agree, at the Company's
          request, to enter into negotiations, in good faith, in order to amend
          such provisions in a credit neutral manner so as to reflect equitably
          such Accounting Changes with the desired result that the criteria for
          evaluating the Company's and its Subsidiaries' financial condition
          shall be the same after such changes as if such changes had not been
          made; provided, however, until such provisions are amended in a manner
          reasonably satisfactory to the
<PAGE>
          Administrative Agent and the Required Lenders, no Accounting Change
          shall be given effect in such calculations and all financial
          statements and reports required to be delivered hereunder shall be
          prepared in accordance with Agreement Accounting Principles without
          taking into account such Accounting Changes. In the event such
          amendment is entered into, all references in this Agreement to
          Agreement Accounting Principles shall mean generally accepted
          accounting principles as in effect on June 1, 2001, but giving effect
          to the Accounting Changes addressed in such amendment.

               "Authorized Officer" means any of the Chairman and Chief
          Executive Officer, President and Chief Operating Officer, Senior Vice
          President and Chief Financial Officer, Vice President and Treasurer
          and any Assistant Treasurer of the Company or any person designated by
          any such Person in writing to the Administrative Agent from time to
          time, acting singly.

               "Combined Commitment" means the sum of (1) the aggregate of the
          Commitments hereunder (which, after the Commitments have been
          terminated, shall be based on the aggregate Commitments immediately
          prior to such termination) and (2) the aggregate "Commitments" under
          and as defined in the 3-Year Revolving Credit Agreement (which, after
          such "Commitments" have been terminated, shall be based on the
          aggregate of such "Commitments" immediately prior to such
          termination).

               "Combined Utilized Amount" means the sum of (1) the Aggregate
          Ratable Outstandings of all the Lenders plus the Aggregate Non-Pro
          Rata Multicurrency Outstandings of all the Lenders hereunder excluding
          any amounts attributable to outstanding Multicurrency Swing Line Loans
          or any Lender's funded participations in or obligations to purchase
          participations in Multicurrency Swing Line Loans, and (2) the
          "Aggregate Outstandings" of all the "Lenders" under and as defined in
          the 3-Year Revolving Credit Agreement.

               "Indebtedness" of a Person means, without duplication, such
          Person's (a) obligations for borrowed money, (b) obligations
          representing the deferred purchase price of Property or services
          (other than accounts payable arising in the ordinary course of such
          Person's business payable on terms customary in the trade), (c)
          obligations, whether or not assumed, secured by Liens on property now
          or hereafter owned or acquired by such Person, (d) obligations which
          are evidenced by notes, acceptances, or other instruments (other than
          Financial Contracts), to the extent of the amounts actually borrowed,
          due, payable or drawn, as the case may be, (e) Capitalized Lease
          Obligations, (f) all obligations in respect of standby Letters of
          Credit, whether drawn or undrawn, contingent or otherwise, (g)
          Receivables Facility Attributed Indebtedness in excess of $300,000,000
          (it being understood, that notwithstanding the characterization of
          Receivables Facility Attributed Indebtedness as on-balance sheet
          Indebtedness or as an Off-Balance Sheet Liability, Receivables
          Facility Attributed Indebtedness shall only constitute "Indebtedness"
          hereunder to the extent that it exceeds $300,000,000), (h) Synthetic
          Lease Obligations in excess of $200,000,000 (it
<PAGE>
          being understood, that notwithstanding the characterization of
          Synthetic Lease Obligations as on-balance sheet Indebtedness or as an
          Off-Balance Sheet Liability, Synthetic Lease Obligations shall only
          constitute "Indebtedness" hereunder to the extent that they exceed
          $200,000,000), (i) with respect to Indebtedness of the Company, the
          Company-obligated mandatorily redeemable preferred capital securities
          and (j) Contingent Obligations with respect to any of the foregoing to
          the extent (and only to the extent) that (1) such Contingent
          Obligation relates to other Indebtedness that is not consolidated
          Indebtedness of the Company and its Subsidiaries and (2) the other
          Indebtedness to which such Contingent Obligation relates is
          outstanding and then only as to principal or like amounts actually
          borrowed, due, payable or drawn, as the case may be; provided, that
          for purposes of this definition and this Agreement, Indebtedness of
          the Company and its Subsidiaries (i) shall not be increased or
          decreased as a result of any change in the Company's liabilities
          pursuant to Statement of Financial Accounting Standards No. 133,
          promulgated by the Financial Accounting Standards Board of the
          Financial Accounting Foundation and (ii) shall exclude Indebtedness of
          the SPV owing to the Originators representing the purchase price
          payable for Receivables and Related Security purchased by the SPV in
          connection with a Receivables Purchase Facility.

               "Lien" means any lien (statutory or other), mortgage, pledge,
          hypothecation, assignment, deposit arrangement, encumbrance or
          preference, priority or other security agreement or preferential
          arrangement of any kind or nature whatsoever (including, without
          limitation, the interest of a vendor or lessor under any conditional
          sale, Capitalized Lease, Synthetic Lease or other title retention
          agreement).

               "Notice of Assignment" is defined in Section 13.3.2.

               "Off-Balance Sheet Liabilities" of a Person means, without
          duplication, (a) any Receivables Facility Attributed Indebtedness and
          repurchase obligation or liability of such Person or any of its
          Subsidiaries with respect to Receivables or notes receivable sold by
          such Person or any of its Subsidiaries to the extent such Receivables
          Facility Attributed Indebtedness, obligation or liability does not
          appear on the consolidated balance sheet of such Person and its
          Subsidiaries (calculated to include the unrecovered investment of
          purchasers or transferees of Receivables or notes receivable or any
          other obligation of the Company or such transferor to
          purchasers/transferees of interests in Receivables or notes
          receivables or the agent for such purchasers/transferees), (b) any
          liability under any sale and leaseback transactions which do not
          create a liability on the consolidated balance sheet of such Person,
          (c) any Synthetic Lease Obligations or (d) any obligations arising
          with respect to any other transaction which is the functional
          equivalent of or takes the place of borrowing but which does not
          constitute a liability on the consolidated balance sheets of such
          Person and its Subsidiaries.
<PAGE>
               "Priority Indebtedness" means, collectively, and without
          duplication, (a) any and all Indebtedness of any Subsidiary of the
          Company, (b) any and all Indebtedness of the Company and its
          Subsidiaries that is secured by any Lien, (c) Receivables Facility
          Attributed Indebtedness in excess of $300,000,000 and (d) Synthetic
          Lease Obligations in excess of $200,000,000; provided, that, (x) there
          shall be excluded from the calculation of Priority Indebtedness (i)
          Indebtedness of the Foreign Subsidiary Borrowers under this Agreement
          (ii) Indebtedness of any Subsidiary of the Company owing to any of the
          Borrowers and (iii) intercompany Indebtedness owing from a Subsidiary
          of the Company to another Subsidiary of the Company disclosed from
          time to time to the Agents to the extent that such intercompany
          Indebtedness is evidenced by one or more promissory notes which shall
          contain terms subordinating such Indebtedness to the Obligations in a
          manner satisfactory to the Agents, and (y) for purposes of
          clarification, each reference to "Indebtedness" in this definition
          shall include both intercompany and third-party Indebtedness.

               "Rate Hedging Agreement" means any agreement with respect to any
          swap, forward, future or derivative transaction or option or similar
          agreement involving, or settled by reference to, one or more rates,
          currencies, commodities, equity or debt instruments or securities, or
          economic, financial or pricing indices or measures of economic,
          financial or pricing risk or value or any similar transaction or any
          combination of these transactions.

               "Receivables Purchase Facility" means the securitization facility
          pursuant to which the Receivables and Related Security of the
          Originators are transferred to one or more SPVs, and thereafter to
          certain investors, pursuant to the terms and conditions of the
          Receivables Purchase Documents.

               "Substantial Portion" means, with respect to the Property of the
          Company and its Subsidiaries, Property which exceeds any of the
          following thresholds: (a) such Property represents more than 25% of
          the consolidated assets of the Company and its Subsidiaries as would
          be shown in the consolidated financial statements of the Company and
          its Subsidiaries as at the beginning of the twelve-month period ending
          with the month in which such determination is made, if such financial
          statements were prepared in accordance with Agreement Accounting
          Principles, or (b) such Property is responsible for more than 25% of
          the consolidated net sales of the Company and its Subsidiaries as
          reflected in the financial statements referred to in clause (a) above,
          or (c) such Property accounts for more than 25% of the consolidated
          net income of the Company and its Subsidiaries as reflected in the
          financial statements referred to in clause (a) above (it being
          understood that only clause (a) above shall apply in determining
          whether Property constituting headquarters or other non-manufacturing
          facilities of the Company and its Subsidiaries that has been leased,
          sold or otherwise disposed of or, alternatively, transferred and
          subsequently leased back pursuant to a sale and leaseback transaction,
          constitutes a Substantial Portion).
<PAGE>
          1.5. Clause (a) of the definition of "Total Debt" in the Credit
     Agreement is hereby amended and restated in its entirety as follows:

          (a) all Indebtedness of the Company and its Subsidiaries as at such
          date, but excluding (x) Indebtedness consisting of the
          Company-obligated mandatorily redeemable preferred capital securities,
          determined on a consolidated basis and (y) obligations under Rate
          Hedging Agreements that are secured by any deposit arrangement or
          other pledge of cash or cash equivalents

          1.6. The lead-in language to Section 6.1 of the Credit Agreement and
     clauses (i) and (ii) of such Section are hereby amended and restated in
     their entirety as follows:

               6.1 Financial Reporting. The Company will maintain, for itself
          and each Subsidiary, a system of accounting enabling it to provide,
          and will furnish to the Lenders:

               (i) within one hundred and twenty (120) days after the close of
          each of the Company's fiscal years, annual audited consolidated
          financial statements for the Company and its Subsidiaries, including a
          consolidated balance sheet as of the end of such period, related
          statement of consolidated income, statement of consolidated
          shareowners' equity, and statement of cash flows, all prepared in
          accordance with accounting principles generally accepted in the United
          States, accompanied by an unqualified audit report of independent
          auditors acceptable to the Lenders;

               (ii) within sixty (60) days after the close of the first three
          quarterly periods of each of the Company's fiscal years, unaudited
          consolidated financial statements for the Company and its
          Subsidiaries, including a consolidated balance sheet as of the end of
          such period, related statement of consolidated income and statement of
          cash flows, all prepared in accordance with accounting principles
          generally accepted in the United States for the period from the
          beginning of such fiscal year to the end of such quarter, all
          certified by a Designated Financial Officer;

          1.7. Clauses (iv) through (vi) of Section 6.12 of the Credit Agreement
     are hereby amended and restated in their entirety as follows:

               (iv) in connection with the Company's continuing integration of
          the Arvin and Meritor businesses, the Company and its Subsidiaries may
          sell, lease, transfer or otherwise dispose of plants and real estate,
          provided that the aggregate book value of all such plants and real
          estate so sold, leased, transferred or otherwise disposed (together
          with all such plants and real estate sold prior to the Closing Date)
          does not exceed $225,000,000 and provided prior to the consummation of
          such transaction, notice of such sale, lease, transfer or other
          disposition shall have been provided by the Company to the
          Administrative Agent identifying such transaction as an integration
          transaction pursuant to the terms of this clause (iv);
<PAGE>
               (v) the Company may sell its interests in each of (a) Roll
          Coater, Inc., an Indiana corporation, (b) AVM, Inc., a South Carolina
          corporation, (c) the facility located at 2020 15th Street, Columbus,
          Indiana 47201 (d) a line of business consisting of off-highway
          planetary axles, in each case, in its entirety or in a series of one
          or more transactions; and

               (vi) Other leases, sales, sales and leasebacks or other
          dispositions of its Property that, (a) are not for less than fair
          market value and (b) together with all other Property of the Company
          and its Subsidiaries previously leased, sold or disposed of (other
          than as provided in clauses (i) through (v) above) as permitted by
          this Section during the twelve-month period ending with the month
          prior to the month in which any such lease, sale or other disposition
          occurs, do not constitute a Substantial Portion of the Property of the
          Company and its Subsidiaries, excluding from such calculation sales,
          leases, sale leasebacks or other dispositions where the fair market
          value of the asset sold in such transaction (or a series of related
          transactions) does not exceed $1,000,000.

          1.8. Section 6.14(v) of the Credit Agreement is hereby amended to add
     the words "and Synthetic Leases" immediately after the words "Capitalized
     Leases."

          1.9. Section 6.14(xiii) of the Credit Agreement is hereby amended and
     restated in its entirety as follows:

               (xiii) Liens arising under the Loan Documents, including Section
          2.19.7, and Liens arising under the 3-Year Revolving Credit Agreement
          and the related loan documents;

          1.10. Section 6.14 of the Credit Agreement is hereby amended to
     renumber clause (xvi) as clause (xvii) and to include the following new
     clause (xvi) immediately prior thereto:

          (xvii) Deposit arrangements and pledges of cash or cash equivalents
     that secure only obligations under Rate Hedging Agreements otherwise
     permitted hereunder; and

          1.11. The first provisio in the last sentence of Section 6.14 is
     hereby restated in its entirety as follows:

          provided, that any agreement, note, indenture or other instrument in
          connection with purchase money Indebtedness (including Capitalized
          Leases) and Synthetic Leases may prohibit the creation of a Lien in
          favor thereof on the items of property obtained with the proceeds of
          such purchase money Indebtedness or subject to such Synthetic Leases;

          1.12. Section 6.19 of the Credit Agreement is hereby amended and
     restated in its entirety as follows:
<PAGE>
               6.19. Additional Guarantees. The Company will not permit any of
          its Subsidiaries to become co-obligors or guarantors of any
          Indebtedness, Synthetic Lease Obligations or Off-Balance Sheet
          Liabilities of the Company unless such Subsidiaries similarly become
          co-obligors or guarantors of the Indebtedness hereunder and under the
          3-Year Revolving Credit Agreement.

          1.13. Section 6.22 of the Credit Agreement is hereby amended and
     restated in its entirety as follows:

               6.22 Financial Contracts. The Company shall not and shall not
          permit any of its Subsidiaries to enter into any Financial Contracts
          other than (a) Financial Contracts entered into to hedge or mitigate
          risks to which the Company or any Subsidiary has actual exposure and
          which, accordingly, are of a non-speculative nature (other than those
          in respect of Capital Stock of the Company or any of its Subsidiaries)
          and (b) Financial Contracts entered into in order to effectively cap,
          collar or exchange interest rates (from fixed to floating rates, from
          one floating rate to another floating rate or otherwise) with respect
          to any interest-bearing liability or investment of the Company or any
          Subsidiary.

          1.14. Section 7.1.5 of the Credit Agreement is hereby amended and
     restated in its entirety as follows:

               7.1.5. Failure of the Company, a Foreign Subsidiary Borrower or
          any other Subsidiary to pay (i) any Indebtedness under the 3-Year
          Revolving Credit Agreement or (ii) without duplication, any other
          Indebtedness (other than the Indebtedness hereunder), Priority
          Indebtedness, Off-Balance Sheet Liabilities or obligations arising
          under Financial Contracts with a principal amount individually or in
          the aggregate in excess of $35,000,000 when due (the Indebtedness,
          Priority Indebtedness, Off-Balance Sheet Liabilities and obligations
          arising under Financial Contracts in this clause (ii) being referred
          to as "MATERIAL LIABILITIES"), or the default by the Company, any
          Foreign Subsidiary Borrower or any other Subsidiary in the performance
          of any other term, provision or condition contained in the 3-Year
          Revolving Credit Agreement or any other agreement under which any such
          Material Liabilities was created or is governed, the effect of which
          is to cause, or to permit the holder or holders of such Indebtedness
          under the 3-Year Revolving Credit Agreement or such Material
          Liabilities to cause, such Indebtedness or Material Liabilities to
          become due prior to its stated maturity; or any such Indebtedness
          under the 3-Year Revolving Credit Agreement or such Material
          Liabilities shall be declared to be due and payable or required to be
          prepaid (other than by a regularly scheduled payment), prior to the
          stated maturity thereof.

          1.15. Section 10.12 of the Credit Agreement is hereby amended to
     change the references to "Section 10.13" and "Section 10.13(b)" to "Section
     10.12" and "Section 10.12(b)" respectively.
<PAGE>
          1.16. Exhibit C to the Credit Agreement (Compliance Certificate) is
     hereby amended and restated in its entirety in the form attached as Annex A
     hereto.

          2. Conditions Precedent. This Amendment shall become effective as of
the date first above written, if, and only if the Administrative Agent has
received:

          2.1. duly executed originals of this Amendment from the Borrowers and
     the Required Lenders; and

          2.2. evidence satisfactory to the Administrative Agent and the
     Syndication Agent that the 364-Day Credit Agreement shall have been
     refinanced by a 3-year revolving credit facility in form and substance
     acceptable to the Administrative Agent and the Syndication Agent
     (substantially concurrently herewith) that conforms the calculation of the
     utilization fee contained therein to the calculation set forth in the
     Credit Agreement, as amended hereby; it being understood that such 3-year
     credit facility may, but shall not be required to, contain additional
     changes to those set forth herein.

          3. Representations and Warranties of the Borrowers. The Borrowers
hereby represent and warrant as follows:

          (a) The Borrowers have the requisite corporate or other organizational
power and authority to execute and deliver this Amendment and the officers of
the Borrowers executing this Amendment have been duly authorized to execute and
deliver the same and bind the Borrowers with respect to the provisions hereof.

          (b) This Amendment and the Credit Agreement, as amended hereby,
constitute legal, valid and binding obligations of the Borrowers and are
enforceable against the Borrowers in accordance with their terms (except as
enforceability may be limited by bankruptcy, insolvency, or similar laws
affecting the enforcement of creditors' rights generally).

          (c) Upon the effectiveness of this Amendment, the Borrowers hereby
reaffirm all representations and warranties made in the Credit Agreement, and to
the extent the same are not amended hereby, agree that all such representations
and warranties shall be deemed to have been remade as of the date of delivery of
this Amendment, unless and to the extent that any such representation and
warranty is stated to relate solely to an earlier date, in which case such
representation and warranty shall be true and correct as of such earlier date.

          (d) No Default or Unmatured Default has occurred and is continuing
under the Credit Agreement that has not been waived.

          4. Reference to and Effect on the Credit Agreement.

          (a) Upon the effectiveness of Section 1 hereof, on and after the date
hereof, each reference in the Credit Agreement to "this Credit Agreement,"
"hereunder," "hereof," "herein" or words of like import shall mean and be a
reference to the Credit Agreement, as amended hereby.
<PAGE>
          (b) Except as specifically amended or waived above, the Credit
Agreement, as amended hereby, and all other documents, instruments and
agreements executed and/or delivered in connection therewith, shall remain in
full force and effect, and are hereby ratified and confirmed.

          (c) Except as expressly provided herein, the execution, delivery and
effectiveness of this Amendment shall not operate as a waiver of any right,
power or remedy of the Agents or the Lenders, nor constitute a waiver of any
provision of the Credit Agreement or any other documents, instruments and
agreements executed and/or delivered in connection therewith.

          5. Governing Law. This Amendment shall be governed by and construed in
accordance with the internal laws (as opposed to the conflict of law provisions)
of the State of Illinois.

          6. Headings. Section headings in this Amendment are included herein
for convenience of reference only and shall not constitute a part of this
Amendment for any other purpose.

          7. Counterparts. This Amendment may be executed by one or more of the
parties hereto on any number of separate counterparts and all of said
counterparts taken together shall be deemed to constitute one and the same
instrument.

                  SIGNATURE PAGES TO BE ATTACHED SEPARATELY
<PAGE>
     IN WITNESS WHEREOF, this Amendment has been duly executed and delivered on
the date first above written.

                            ARVINMERITOR, INC., as a Borrower

                            By:                /s/ Frank A. Voltolina
                                ------------------------------------------------
                            Name:  Frank A. Voltolina
                            Title: Vice President and Treasurer

                            MERITOR AUTOMOTIVE CANADA, INC., as a Borrower

                            By:                /s/ Frank A. Voltolina
                                ------------------------------------------------
                            Name:  Frank A. Voltolina
                            Title: Treasurer

                            ARVIN FINANCE IRELAND, as a Borrower

                            By:                /s/ Frank A. Voltolina
                                ------------------------------------------------
                            Name:  Frank A. Voltolina
                            Title: Director

                            MERITOR HEAVY VEHICLE SYSTEMS LIMITED, as a Borrower

                            By:                /s/ Allan H.S. Johnson
                                ------------------------------------------------
                            Name:  Allan H.S. Johnson
                            Title: Director

                                            Signature Page to Amendment No. 3 to
                          Amended and Restated 5-Year Revolving Credit Agreement

<PAGE>
                                 LENDERS:

                                 BANK ONE, NA (Main Office Chicago), as
                                 Administrative Agent, an Issuer, the Swing Line
                                 Bank and a Lender

                                 By:           /s/ William J. Maxbauer
                                     -------------------------------------------
                                 Name:  William J. Maxbauer
                                 Title: Director

                                 JP MORGAN CHASE BANK (successor to THE
                                 CHASE MANHATTAN BANK), as Syndication
                                 Agent and a Lender

                                 By:             /s/ Karen May Sharf
                                     -------------------------------------------
                                 Name:  Karen May Sharf
                                 Title: Vice President

                                 BANK OF AMERICA, N.A., as Documentation
                                 Agent and a Lender

                                 By:           /s/ Charles A. McDonell
                                     -------------------------------------------
                                 Name:  Charles McDonell
                                 Title: Managing Director

                                 CITICORP USA, INC., as Documentation Agent
                                 and a Lender

                                 By:             /s/ Michael D'Arina
                                     -------------------------------------------
                                 Name:  Michael D'Arina
                                 Title: Relationship Manager
                                        Citibank N.A.
                                        XXXXXXXXXXXXXXXXXXXX
                                        XXXXXXXXXXXXXXXXXXXX

                                 BANK OF TOKYO-MITSUBISHI TRUST COMPANY,
                                 as a Lender

                                 By:           /s/ Paresh R. Shah
                                     -------------------------------------------
                                 Name:  Paresh R. Shah
                                 Title: Vice President

                                            Signature Page to Amendment No. 3 to
                          Amended and Restated 5-Year Revolving Credit Agreement
<PAGE>
                                    COMERICA BANK, as a Lender

                                    By:          /s/ Robert M. Ramirez
                                        ----------------------------------------
                                    Name:  Robert M. Ramirez
                                    Title: Assistant Vice President

                                    DEUTSCHE BANK AG
                                    NEW YORK BRANCH AND/OR CAYMAN ISLAND BRANCH,
                                    as a Lender

                                    By:            /s/ Oliver Schwarz
                                        ----------------------------------------
                                    Name:  Oliver Schwarz
                                    Title: Vice President

                                    By:          /s/ Hans-Josef Thiele
                                        ----------------------------------------
                                    Name:  Hans-Josef Thiele
                                    Title: Director

                                    KEYBANK NATIONAL ASSOCIATION, as a Lender

                                    By:              /s/ J.T. Taylor
                                        ----------------------------------------
                                    Name:  J.T. Taylor
                                    Title: Vice President

                                    UBS AG, STAMFORD BRANCH, as a Lender

                                    By:           /s/ Wilfred V. Saint
                                        ----------------------------------------
                                    Name:  Wilfred V. Saint
                                    Title: Associate Director

                                    By:          /s/ Patricia O'Kicki
                                        ----------------------------------------
                                    Name:  Patricia O'Kicki
                                    Title: Director

                                            Signature Page to Amendment No. 3 to
                          Amended and Restated 5-Year Revolving Credit Agreement

<PAGE>
                                          HSBC BANK PLC, as a Lender

                                          By:           /s/ G R Thomas
                                              ----------------------------------
                                          Name:  G R Thomas
                                          Title: Global Relationship Manager

                                          ABN AMRO BANK N.V., as a Lender

                                          By:
                                              ----------------------------------
                                          Name:
                                          Title:

                                          By:
                                              ----------------------------------
                                          Name:
                                          Title:

                                          FIRST UNION NATIONAL BANK, as a Lender

                                          By:
                                              ----------------------------------
                                          Name:
                                          Title:

                                          FLEET NATIONAL BANK, as a Lender

                                          By:
                                              ----------------------------------
                                          Name:
                                          Title:

                                          SUNTRUST BANK, as a Lender

                                          By:      /s/ William C. Humphries
                                              ----------------------------------
                                          Name:  William C. Humphries
                                          Title: Director

                                            Signature Page to Amendment No. 3 to
                          Amended and Restated 5-Year Revolving Credit Agreement

<PAGE>
                                     TORONTO DOMINION (TEXAS), INC., as a Lender

                                     By:             /s/ Ann S. Slanis
                                         ---------------------------------------
                                     Name:  Ann S. Slanis
                                     Title: Vice President

                                     MELLON BANK, N.A., as a Lender

                                     By:          /s/ Daniel J. Lenckos
                                         ---------------------------------------
                                     Name:  Daniel J. Lenckos
                                     Title: Vice President

                                     THE BANK OF NEW YORK, as a Lender

                                     By:           /s/ Joshua Feldman
                                         ---------------------------------------
                                     Name:  Joshua Feldman
                                     Title: Vice President

                                     BAYERISCHE LANDESBANK GIROZENTRALE,
                                     CAYMAN ISLANDS BRANCH, as a Lender

                                     By:           /s/ Peter Obermann
                                         ---------------------------------------
                                     Name:  Peter Obermann
                                     Title: Vice President

                                     By:          /s/ James H. Boyle
                                         ---------------------------------------
                                     Name:  James H. Boyle
                                     Title: Vice President

                                     CREDIT LYONNAIS NEW YORK BRANCH,
                                     as a Lender

                                     By:           /s/ Lee E. Greve
                                         ---------------------------------------
                                     Name:  Lee E. Greve
                                     Title: First Vice President

                                            Signature Page to Amendment No. 3 to
                          Amended and Restated 5-Year Revolving Credit Agreement

<PAGE>
                                      FIRSTAR BANK, NA, as a Lender

                                      By:
                                          --------------------------------------
                                      Name:
                                      Title:

                                      THE INDUSTRIAL BANK OF JAPAN, LIMITED,
                                      CHICAGO BRANCH, as a Lender

                                      By:
                                          --------------------------------------
                                      Name:
                                      Title:

                                      LLOYDS TSB BANK plc, as a Lender

                                      By:          /s/ Richard M. Heath
                                          --------------------------------------
                                      Name:  Richard M. Heath
                                      Title: Vice President,
                                             Corporate Banking, USA
                                             H009

                                      By:            /s/ Lisa Maguire
                                          --------------------------------------
                                      Name:  Lisa Maguire
                                      Title: Assistant Vice President
                                             Corporate Banking USA
                                             M067

                                      NATIONAL CITY BANK OF INDIANA, as a Lender

                                      By:         /s/ David G. McNeely
                                          --------------------------------------
                                      Name:  David G. McNeely
                                      Title: Corporate Banking Officer

                                      By:
                                          --------------------------------------
                                      Name:
                                      Title:

                                            Signature Page to Amendment No. 3 to
                          Amended and Restated 5-Year Revolving Credit Agreement

<PAGE>
                                 INTESABCI-NEW YORK BRANCH, as a Lender

                                 By:
                                     -------------------------------------------
                                 Name:
                                 Title:

                                 By:
                                     -------------------------------------------
                                 Name:
                                 Title:

                                 NORDEA BANK FINLAND PLC, (aka MERITA BANK PLC);
                                 as a Lender

                                 By:              /s/ Ulf Forsstrom
                                     -------------------------------------------
                                 Name: Ulf Forsstrom
                                 Title: Vice President

                                 By:               /s/ Thomas Hickey
                                     -------------------------------------------
                                 Name:  Thomas Hickey
                                 Title: Vice President

                                            Signature Page to Amendment No. 3 to
                          Amended and Restated 5-Year Revolving Credit Agreement

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00042-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00042-of-00352.parquet"}]]