Document:

EX-10.5 FORM OF MASTER CONFIDENTIAL DISCLOSURE

 

Exhibit 10.5

EXHIBIT E

FORM OF

MASTER CONFIDENTIAL DISCLOSURE AGREEMENT

between

SYNOVUS FINANCIAL CORP.

and

TOTAL SYSTEM SERVICES, INC.

Dated [________ __], 2007

 

 

FORM OF MASTER CONFIDENTIAL DISCLOSURE AGREEMENT

     This MASTER CONFIDENTIAL DISCLOSURE AGREEMENT (this “Agreement”), dated as of [                     ],
2007, between Synovus Financial Corp., a Georgia corporation (“Synovus”), and Total
System Services, Inc., a Georgia corporation (“TSYS”).

     WHEREAS, Synovus, Columbus Bank and Trust Company and TSYS have entered into an Agreement and
Plan of Distribution, dated as of October 25, 2007 (the “Distribution Agreement”), which
provides, subject to the terms and conditions in the Distribution Agreement, among other things,
for the distribution of the common stock of TSYS held by Synovus as of a certain date to the
shareholders of Synovus; and

     WHEREAS, as part of the foregoing, the parties further desire to enter into this Agreement to
provide for the protection of their Confidential Information (as defined below).

     NOW, THEREFORE, in consideration of the mutual promises of the parties, and of good and
valuable consideration, it is agreed by and between the parties as follows:

ARTICLE I

DEFINITIONS

     Section 1.1 Definitions. For the purpose of this Agreement the following capitalized terms
are defined in this Section 1.1 and shall have the meaning specified herein:

     (a) “Affiliated Company” means, with respect to Synovus, any entity that,
after the Effective Time, directly or indirectly is controlled by, or is under common
control with, Synovus, other than any Subsidiary of Synovus, and, with respect to TSYS, any
entity that, after the Effective Time, directly or indirectly is controlled by, or is under
common control with TSYS, other than any Subsidiary of TSYS. As used herein, “control”
means the possession, directly or indirectly, of the power to direct or cause the direction
of the management and policies of such entity, whether through the ownership of voting
securities or other interests, by contract or otherwise. For the avoidance of doubt, TSYS
is not an Affiliated Company of Synovus for purposes of this Agreement.

     (b) “Agreement” has the meaning set forth in the preamble to this Agreement.

     (c) “Ancillary Agreements” has the meaning given to it in the Distribution
Agreement.

     (d) “Confidential Information” means, subject to Section 6.14,
information, Trade Secrets, technical data and know-how that is not otherwise in the public
domain, that is directly related to the operation of the business of the Disclosing Party
and that is either (i) known to or in the possession of the Receiving Party as of the
Effective Time or (ii) disclosed to the Receiving Party after the Effective Time in
connection with the performance under any Transaction Agreement. Confidential Information
shall include, with respect to a Disclosing Party, all Customer Data of such Disclosing
Party. Confidential Information may include information relating to, by way of example,
research, products, services, customers, markets, software, developments, inventions,

 

 

processes, designs, drawings, engineering, marketing or finances, and may be in
writing, disclosed orally or learned by inspection of computer programming code, equipment
or facilities.

     (i) Confidential Information of Third Parties that is known to, in the
possession of or acquired by a Receiving Party pursuant to a relationship with the
Disclosing Party shall be deemed the Disclosing Party’s Confidential Information for
purposes herein.

     (ii) Notwithstanding the foregoing provisions of this Section 1.1(d),
Confidential Information shall exclude information that: (i) was in the Receiving
Party’s lawful possession before receipt from the Disclosing Party and obtained from
a source other than the Disclosing Party and other than solely through the prior
relationship of the Disclosing Party and the Receiving Party before the Effective
Time; (ii) information that was lawfully possessed by both the Receiving Party and
the Disclosing Party prior to the Effective Time and that pertains to both the
business of the Receiving Party and the business of the Disclosing Party, (iii) is
or becomes a matter of public knowledge through no fault of the Receiving Party and
other than as a consequence of any unauthorized disclosure, act or omission by the
Receiving Party or its Representatives; (iv) is lawfully received by the Receiving
Party from a Third Party without a duty of confidentiality; (v) is independently
developed by the Receiving Party without violating any obligations hereunder; or
(vi) is disclosed by the Receiving Party with the Disclosing Party’s prior written
approval.

     (e) “Confidentiality Period” means, (i) with respect to Confidential
Information that is not a Trade Secret, five (5) years after the later to occur of (A) the
Effective Time and (B) the date of disclosure to the Receiving Party, and (ii) with respect
to Trade Secrets, the later to occur of (A) the date that is five (5) years after the later
to occur of the Effective Time and the date of disclosure to the Receiving Party, and (B)
the date on which the relevant Trade Secret is no longer a Trade Secret.

     (f) “Customer Data” means all data and information pertaining to any customer
of a Disclosing Party and submitted to the Receiving Party by the Disclosing Party, or
received by the Receiving Party on behalf of the Disclosing Party.

     (g) “Disclosing Party” means the party disclosing the relevant Confidential
Information.

     (h) “Distribution Agreement” has the meaning set forth in the recitals to this
Agreement.

     (i) “Effective Time” has the meaning set forth in the Distribution Agreement.

     (j) “Express Purpose” means: (i) with respect to the Receiving Party or any of
its Representatives, to perform or assist the Receiving Party to perform its obligations
and exercise its rights under any of the Transaction Agreements and (ii) with respect to a
sublicensee permitted under a Transaction Agreement, to exercise its rights under such
Transaction Agreement.

     (k) “Person” means an individual, a partnership, a corporation, a limited
liability company, an association, a joint stock company, a trust, a joint venture, an

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unincorporated organization, and a governmental entity or any department, agency or
political subdivision thereof.

     (l) “Receiving Party” means the recipient of the relevant Confidential
Information.

     (m) “Representatives” has the meaning set forth in Section 2.2 of this
Agreement.

     (n) “Restricted Assignment Period” has the meaning given to it in the
Distribution Agreement.

     (o) “Subsidiary” has the meaning given to it in the Distribution Agreement.

     (p) “Synovus” has the meaning set forth in the preamble to this Agreement.

     (q) “Third Party” means a Person other than Synovus and its Representatives
and TSYS and its Representatives.

     (r) “Trade Secret” has the meaning given to it in the Georgia Trade Secrets
Act, O.C.G.A. § 10-1-761.

     (s) “Transaction Agreements” means the Distribution Agreement and the
Ancillary Agreements.

     (t) “TSYS” has the meaning set forth in the preamble to this Agreement.

ARTICLE II

CONFIDENTIALITY

     Section 2.1 Confidentiality and Non-Use Obligations. During the Confidentiality Period, the
Receiving Party shall (i) protect the Confidential Information of the Disclosing Party by using the
same degree of care, but no less than a reasonable degree of care, including the utilization of
security devices or procedures designed to prevent unauthorized access to such materials, to
prevent the unauthorized use, dissemination, or publication of the Confidential Information as the
Receiving Party uses to protect its own confidential information of a like nature, (ii) not use
such Confidential Information in violation of any use restriction in this Agreement, the
Distribution Agreement or any other Ancillary Agreement, (iii) not disclose such Confidential
Information to any Third Party, except, subject to applicable law, as expressly permitted under
this Agreement, the Distribution Agreement or any other Ancillary Agreement or in any other
agreements entered into between the parties in writing, without the prior written consent of the
Disclosing Party and (iv) not use the Confidential Information to the commercial or competitive
disadvantage of the Disclosing Party. Each party shall instruct its officers, employees, agents,
contractors and professional advisors (a) of its confidentiality obligations hereunder and (b) not
to attempt to circumvent any such security procedures and devices. Each party’s obligation under
the preceding sentence may be satisfied by the use of its standard form of confidentiality
agreement, if the same reasonably accomplishes the purposes here intended.

     Section 2.2 Use and Disclosure. The Receiving Party may use the Confidential Information
solely for the Express Purpose and disclose the Confidential Information to its directors,
officers, employees, professional advisors, agents, contractors, Affiliated Companies

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and Subsidiaries, and their respective directors, officers, employees, agents, contractors and
sublicensees (collectively, “Representatives”) solely where such disclosure is reasonably
necessary for the Express Purpose, and provided that the Receiving Party may also disclose the
Confidential Information to its sublicensees only if permitted to do so under a Transaction
Agreement. The Receiving Party’s disclosure to its Representatives shall be subject to applicable
law and the sublicensee’s agreement in writing to confidentiality and non-use terms at least as
protective of the Disclosing Party as the provisions of this Agreement. The Receiving Party shall
use commercially reasonable efforts to ensure that with regard to its Representatives’ use and
possession of Confidential Information, such Representatives observe confidentiality obligations at
least as protective as those in this Agreement and shall be liable if such Representatives cause a
breach of this Agreement, and for such Representatives’ failure to comply with obligations at least
as protective as those in this Agreement. Each Party agrees that (i) disclosure or use of
Confidential Information in breach of this Agreement could cause considerable commercial and
financial detriment to the Disclosing Party, (ii) damages may be inadequate compensation for breach
of this Agreement and (iii) if any Confidential Information is disclosed or used (or threatened to
be disclosed or used) in breach of this Agreement, then the Disclosing Party may seek, in addition
to any other remedies available to it, equitable relief (including but not limited to specific
performance and injunction).

     Section 2.3 Compelled Disclosure. If the Receiving Party or any of its Representatives
believes that it is or will be compelled by a court or other authority or the rules of a stock
exchange to disclose Confidential Information of the Disclosing Party, it shall (i) give the
Disclosing Party prompt written notice so that the Disclosing Party may take steps to oppose such
disclosure, but in any event the Receiving Party shall not be prohibited from complying with such
requirement; provided, however, the Receiving Party must disclose, and ensure that
the Representative discloses, only the minimum Confidential Information (as applicable) and (ii)
reasonably cooperate with the Disclosing Party in its attempts to oppose such disclosure, provided
that the Disclosing Party first agrees to pay the reasonable costs of the Receiving Party in
connection therewith.

     Section 2.4 No Restriction on Disclosing Party. Subject to Section 2.7, nothing in this
Agreement shall restrict the Disclosing Party from using, disclosing, or disseminating its own
Confidential Information in any way.

     Section 2.5 No Restriction on Reassignment. This Agreement shall not restrict reassignment of
the Receiving Party’s employees.

     Section 2.6 Third Party Agreements. Nothing in the Agreement supersedes any restriction
imposed by Third Parties on their Confidential Information, and there is no obligation on the
Disclosing Party to conform Third Party agreements to the terms of this Agreement.

     Section 2.7 Information Security. The Receiving Party of any Customer Data of the Disclosing
Party shall be responsible for establishing, implementing, maintaining and performing a reasonable
information security program (including physical security of physical items) that is reasonably
designed to (i) ensure the security and confidentiality of such Customer Data, (ii) protect against
any anticipated threats or hazards to the security or integrity of such Customer Data, (iii)
protect against unauthorized access to or use of such Customer Data that could result

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in substantial material harm to the Disclosing Party or any of its customers and (iv) ensure
the proper disposal of such Customer Data. The Disclosing Party shall maintain reasonable security
for its own systems, servers, and communications links as is reasonably designed to (a) protect the
security and integrity of its Customer Data to the extent within the Disclosing Party’s control,
and (b) protect against unauthorized access to or use of the Receiving Party’s systems and servers
on which Customer Data of the Disclosing Party is stored to the extent within the Disclosing
Party’s control. The Receiving Party will (1) take appropriate action to address any incident of
unauthorized access to Customer Data of the Disclosing Party and (2) notify the Disclosing Party as
soon as possible of any incident of unauthorized access to Customer Data and any other breach in
the Receiving Party’s security that materially affects the Disclosing Party or the Disclosing
Party’s customers. Either party may change its security procedures from time to time as
commercially reasonable to address operations risks and concerns in compliance with the
requirements of this section.

ARTICLE III

WARRANTY DISCLAIMER

     EACH PARTY ACKNOWLEDGES AND AGREES THAT ALL CONFIDENTIAL INFORMATION IS PROVIDED ON AN “AS IS,
WHERE IS” BASIS AND THAT NEITHER PARTY NOR ANY OF ITS REPRESENTATIVES HAS MADE OR WILL MAKE ANY
REPRESENTATION OR WARRANTY WHATSOEVER, EXPRESS, IMPLIED OR STATUTORY, INCLUDING, WITHOUT
LIMITATION, ANY IMPLIED REPRESENTATIONS OR WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR
PURPOSE, TITLE, ENFORCEABILITY OR NON-INFRINGEMENT, OR AS TO THE ACCURACY OR COMPLETENESS OF THE
CONFIDENTIAL INFORMATION.

ARTICLE IV

TERM AND TERMINATION

     Section 4.1 Term. This Agreement shall remain in full force and effect until the earlier to
occur of: (i) the expiration of the last Confidentiality Period; and (ii) the termination of this
Agreement by the mutual written agreement of the parties.

     Section 4.2 Survival. Articles II (with respect to Confidential Information acquired or
disclosed prior to the date of termination), III, IV, V, VI and VII shall survive any termination
of this Agreement.

     Section 4.3 Return of Confidential Information. Upon the earlier to occur of: (i) the
termination or expiration of this Agreement and (ii) the termination of the Distribution Agreement
or the whole or any part of any Ancillary Agreement, the Receiving Party shall (and shall procure
that its Affiliated Companies and Representatives shall) promptly but in no event later than thirty
(30) days following a request made in writing by the Disclosing Party: (x) return to the Disclosing
Party or destroy (at the sole option of the Receiving Party) all Confidential Information of the
Disclosing Party in the possession or control of the Receiving Party (including, without
limitation, all documents, records, notebooks, data, reports, notes,

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compilations, computer files, data and programs, and similar repositories or materials and any
and all copies or reproductions thereof), as directed by the Disclosing Party; provided,
however, in case of a termination of the whole or part of any Ancillary Agreement (other
than this Agreement), the Confidential Information to be so returned or destroyed shall be limited
to such Confidential Information disclosed by the Disclosing Party in connection with such
terminated Ancillary Agreement, or part thereof, as the case may be; and (y) deliver to the
Disclosing Party a certificate signed by a duly authorized officer of the Receiving Party
supervising such return and destruction, certifying such return or destruction in accordance with
the provisions of this Agreement. Notwithstanding the foregoing, the Receiving Party may retain
Confidential Information beyond the expiration or termination of this Agreement if required to do
so by applicable law, provided that the Receiving Party shall notify the Disclosing Party in
writing of such obligation, and (A) may not use such retained Confidential Information for any
purpose not strictly required to comply with such law, and (B) shall at the Disclosing Party’s
option, return or destroy such retained Confidential Information as soon as practicable after it is
no longer required by law to retain it.

ARTICLE V

LIMITATION OF LIABILITY

     IN NO EVENT SHALL EITHER PARTY OR ITS SUBSIDIARIES OR AFFILIATED COMPANIES BE LIABLE TO THE
OTHER PARTY OR ITS SUBSIDIARIES OR AFFILIATED COMPANIES FOR ANY SPECIAL, CONSEQUENTIAL, INDIRECT,
INCIDENTAL OR PUNITIVE DAMAGES OR LOST PROFITS, HOWEVER CAUSED AND ON ANY THEORY OF LIABILITY
(INCLUDING NEGLIGENCE) ARISING IN ANY WAY OUT OF THIS AGREEMENT, WHETHER OR NOT SUCH PARTY HAS BEEN
ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.

ARTICLE VI

MISCELLANEOUS PROVISIONS

     Section 6.1 Dispute Resolution. Any dispute arising out of or relating to the performance,
breach or interpretation of this Agreement shall be handled in accordance with Section 5.5 of the
Distribution Agreement.

     Section 6.2 Export Restrictions. Both parties shall adhere to all applicable laws,
regulations and rules relating to the export of technical data, and shall not export or reexport
any technical data, any products received from Disclosing Party, or the direct product of such
technical data, to any proscribed country listed in such applicable laws, regulations and rules
unless properly authorized.

     Section 6.3 No Implied Licenses. The Receiving Party acknowledges that the Confidential
Information is the exclusive property of the Disclosing Party, and the Disclosing Party has the
exclusive right, title and interest to its Confidential Information. Nothing contained in this
Agreement shall be construed as conferring any rights by implication, estoppel or otherwise, or
under any intellectual property right, other than the rights expressly granted in this

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Agreement, to the Confidential Information. Neither party is required hereunder to furnish or
disclose to the other any technical or other information.

     Section 6.4 Infringement Suits. Neither party shall have any obligation hereunder to
institute any action or suit against Third Parties for misappropriation of any of its Confidential
Information or to defend any action or suit brought by a Third Party that alleges infringement of
any intellectual property rights by the Receiving Party’s authorized use of the Disclosing Party’s
Confidential Information.

     Section 6.5 Entire Agreement. This Agreement, the Distribution Agreement and the other
Ancillary Agreements constitute the entire agreement between the parties with respect to the
subject matter hereof and shall supersede all prior written and oral and all contemporaneous oral
agreements and understandings with respect to the subject matter hereof. Notwithstanding the
foregoing, the parties agree that any agreements entered into between them after the Effective Time
for the protection of specific Confidential Information shall supersede the terms of this Agreement
with respect to such Confidential Information.

     Section 6.6 Governing Law. This Agreement shall be governed by and construed and enforced in
accordance with the laws of the State of Georgia as to all matters regardless of the laws that
might otherwise govern under principles of conflicts of laws applicable thereto.

     Section 6.7 Descriptive Headings. The descriptive headings herein are inserted for
convenience of reference only and are not intended to be part of or to affect the meaning or
interpretation of this Agreement.

     Section 6.8 Notices. All notices and other communications hereunder shall be in writing and
shall be deemed effectively given the earlier of (i) when received, (ii) when delivered personally,
(iii) one (1) Business Day after being delivered by facsimile (with receipt of appropriate
confirmation) or (iv) one (1) Business Day after being deposited with an overnight courier service
and addressed to the respective parties as follows:

if to Synovus:

Synovus Financial Corp.

1111 Bay Avenue

Suite 500

Columbus, GA 31901

Attention: Chief Financial Officer

Telecopy: (706) 649-4819

if to TSYS:

Total System Services, Inc.

1600 First Avenue

Columbus, GA 31901

Attention: Chief Financial Officer

Telecopy: (706) 644-1725

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or to such other address as a party may request by notifying the other in writing. As used in this
Section 6.8, “Business Day” means any day other than a Saturday, a Sunday or a day
on which banking institutions located in the city of Columbus, Georgia are authorized or obligated
by law or executive order to close.

     Section 6.9 Assignment. This Agreement shall inure to the benefit of and be binding upon the
parties hereto and their respective legal representatives and successors, and nothing in this
Agreement, express or implied, is intended to confer upon any other Person any rights or remedies
of any nature whatsoever under or by reason of this Agreement; provided, however,
except as otherwise expressly provided for in this Agreement, this Agreement shall not be
assignable, in whole or in part, by any party without the prior written consent of the other party,
and any attempt to assign any rights or obligations arising under this Agreement without such
consent shall be null and void; provided further, that a party may assign this
Agreement in connection with: (i) a merger transaction in which such party is not the surviving
entity or (ii) the sale, transfer, exchange or other disposition by such party of all or
substantially all of its assets, so long as, in either case, if such merger or asset sale
transaction occurs during the Restricted Assignment Period, the rating of the assignee, following
the consummation of such merger or asset sale transaction, shall be BBB- or better from Standard &
Poor’s and Baa3 or better from Moody’s Investor Services, Inc. (or if Standard & Poor’s or Moody’s
Investor Services, Inc. shall change their rating designations after the date of this Agreement, a
comparable rating or better under such new designations), and upon the effectiveness of any such
valid assignment the assigning party shall be released from all of its obligations under this
Agreement if the surviving entity of such merger or the transferee of such assets shall agree in
writing, in form and substance reasonably satisfactory to the other party, to be bound by the terms
of this Agreement as if named as a “party” hereto. The Receiving Party’s assignment of this
Agreement shall not relieve it of any of its obligations hereunder.

     Section 6.10 Severability. If any term or other provision of this Agreement is determined by
a nonappealable decision of a court, administrative agency or binding arbitrator by any court or in
any binding arbitration to be invalid, illegal or incapable of being enforced by any rule of law or
public policy, all other conditions and provisions of this Agreement shall nevertheless remain in
full force and effect so long as the economic or legal substance of the transactions contemplated
hereby is not affected in any manner materially adverse to either party. Upon such determination
that any term or other provision is invalid, illegal or incapable of being enforced, the parties
hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent
of the parties as closely as possible in an acceptable manner to the end that the transactions
contemplated hereby are fulfilled to the fullest extent possible.

     Section 6.11 Failure or Indulgence not Waiver; Remedies Cumulative. No failure or delay on
the part of either party hereto in the exercise of any right hereunder shall impair such right or
be construed to be a waiver of, or acquiescence in, any breach of any representation, warranty or
agreement herein, nor shall any single or partial exercise of any such right preclude other or
further exercise thereof or of any other right. All rights and remedies existing under this
Agreement are cumulative to, and not exclusive of, any rights or remedies otherwise available.

     Section 6.12 Amendment. No change or amendment will be made to this Agreement except by an
instrument in writing signed on behalf of each of the parties to such agreement.

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     Section 6.13 Counterparts. This Agreement may be executed in two or more counterparts, all of
which, taken together, shall be considered to be one and the same instrument.

     Section 6.14 Existing Agreements. Notwithstanding anything to the contrary in this Agreement,
Confidential Information shall not include, and this Agreement shall not in any way apply to, any
confidential information exchanged pursuant to those agreements between the parties and/or their
respective Subsidiaries set forth on Schedule A hereto.

     Section 6.15 Effectiveness. This Agreement shall become effective upon the Effective Time and
prior thereto shall be of no force or effect. If the Distribution Agreement shall be terminated in
accordance with its terms prior to the occurrence of the Effective Time, this Agreement and any
actions or agreements contemplated hereby shall automatically be terminated and of no force or
effect.

[Signature page follows]

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     WHEREFORE, the parties have signed this Master Confidential Disclosure Agreement effective as
of the Effective Time.

	 	 	 	 	 	 	 	 
	SYNOVUS FINANCIAL CORP.

 	 	TOTAL SYSTEM SERVICES, INC.

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

[Signature page to Confidential Disclosure Agreement]EX-10.1

 

Exhibit
10.1

October 18, 2007

Dana Corporation

4500 Dorr Street

Toledo, OH 53615

Ladies and Gentlemen:

     Reference is made to the Investment Agreement, dated as of July 26, 2007 (as may be amended
from time to time and together with all exhibits thereto, the “Investment Agreement”), by
and among Centerbridge Capital Partners, L.P., a Delaware limited partnership (“Centerbridge
LP”), CBP Parts Acquisition Co. LLC, a newly formed Delaware limited liability company and
subsidiary of Centerbridge LP (“CBP Parts” and together with Centerbridge LP,
“Centerbridge”), and Dana Corporation, a Virginia corporation (the “Company”). The
Investment Agreement, among other things, sets forth certain terms and conditions on which
Centerbridge has agreed to purchase New Dana’s Series A Preferred and backstop the sale of $250
million in liquidation preference of New Dana Series B Preferred Stock. A true and correct copy of
the Investment Agreement has been provided to the investors whose names and addresses are listed on
the signature page hereto (each a “Series B-2 Backstop Investor” and collectively the
“Series B-2 Backstop Investors”). This commitment is being provided in connection with the
filing of a First Amended Joint Plan of Reorganization substantially in the form attached here to
as Exhibit A (the “Plan”). Capitalized terms used but not defined in this letter agreement
have the meanings ascribed to such terms in the Investment Agreement.

     1. Commitment to Purchase Series B-2 Shares. The Series B-2 Backstop Investors hereby agree
that, subject to the second to last sentence of this Section 1, upon satisfaction of all the
conditions set forth in Sections 5.1 and 5.3 of the Investment Agreement, without waiver of any
such conditions except (a) waivers in which each Series B-2 Backstop Investor concurs and (b)
waivers by the Company, the Series B-2 Backstop Investors collectively will purchase up to
2,900,000 Series B-2 Shares from New Dana for a price of $100 per share (the “Series B-2
Purchase Price”) in cash at the Closing, in accordance with their respective allocation
percentages as set forth on Exhibit B attached hereto (the “Commitment Percentage”) to the
extent that Qualified Investors do not purchase $540 million in liquidation preference of Series B
Preferred Stock on the terms set forth in Section 1.2 of the Investment Agreement, increased by $40
million as provided in the Plan. The Company shall provide written notice to the Series B-2
Backstop Investors no later than two business days prior to the Closing of the aggregate number of
shares of Series B Preferred Stock that are not paid for by Qualified Investors and the
corresponding aggregate purchase price for such shares. The Series B-2 Backstop Investors and the
Company acknowledge and agree that their commitment to purchase Series B Preferred Stock pursuant
to this Agreement constitutes a several obligation of each of the Series B-2 Backstop Investors.
Each Series B-2 Backstop Investor acknowledges that the Series B

 

 

Preferred Stock that it may otherwise be entitled to purchase pursuant to the Investment
Agreement and the Plan as a Qualified Investor (“Eligible Purchase”) may be subject to
reduction to the extent its purchase obligations hereunder together with any Series B Preferred
under an Eligible Purchase would cause it and its Affiliates to exceed the $200 million maximum in
Section 1.2 of the Investment Agreement. No Series B-2 Backstop Investor will be entitled to
refuse to fund their commitment to purchase Series B Preferred Stock pursuant to this Agreement on
the basis that the condition in Section 5.3(d) of the Investment Agreement (the “MAC
Condition”) has not been fulfilled unless and until all of the Series B-2 Backstop Investors
have first agreed in writing to assert that the MAC Condition has not been fulfilled. Any
declaration that the MAC condition has not been fulfilled by fewer than all of the Series B-2
Backstop Investors will not be effective and will have no effect on the obligation of any Series
B-2 Backstop Investor to pay its share of the Series B-2 Purchase Price to the Company.

     2. Commitment Fee. In consideration of the Series B-2 Backstop Investors’ commitment to
purchase the Series B Preferred Stock on the Effective Date pursuant to this Agreement, the Company
will pay to the Series B-2 Backstop Investors an aggregate fee of $11.6 million to be allocated pro
rata among each Backstop Investor according to the percentages set forth on Exhibit B (the
“Series B-2 Commitment Fee”), which fee will be payable by the Company, without
duplication, when and if any of the following shall occur: (w) the Commitment Fee is payable to
Centerbridge pursuant to Section 7.1(d) or Section 7.2 of the Investment Agreement, (x) the
Termination Fee is payable to Centerbridge pursuant to Section 7.1(c) of the Investment Agreement
or Centerbridge is entitled to be paid a fee and expenses pursuant to Section 7.1(a) or 7.1(b), (y)
the Company or Centerbridge terminate the Investment Agreement pursuant to Section 6.1 of the
Investment Agreement, or (z) the Company terminates the Investment Agreement pursuant to Section
6.2(e), provided (in the case of clauses (w), (x), (y) and (z)), that none of the Series B-2
Backstop Investors is in material breach of this letter agreement and provided, further, that, if
(A) this Agreement is terminated prior to the any of the events in clauses (w), (x), (y) or (z)
having occurred or (B) the Series B-2 Backstop Investors assert that the MAC Condition has not been
fulfilled (unless such condition is subsequently waived) and Centerbridge has not alleged that the
MAC Condition has not been fulfilled or has waived the MAC Condition, then in each such case no
Series B-2 Commitment Fee shall be payable, provided, further, that in the event that a court of
competent jurisdiction requires that Series B-2 Backstop Investors to fund their commitments within
a timeframe that does not delay the Closing regardless of the fact that they have asserted that the
MAC Condition has not been fulfilled, then the Company shall pay the Series B-2 Commitment Fee.

     The Series B-2 Commitment Fee will be paid by wire transfer of immediately available funds to
such account or accounts as are designated in writing to the Company by each of the Series B-2
Backstop Investors. For the reasons set forth in Section 7.5 of the Investment Agreement, the
Series B-2 Commitment Fee, when paid following any breach by the Company of any representation,
warranty or covenant in favor of the Series B-2 Backstop Investors contained in this letter
agreement, the Investment Agreement or in the Support Agreement, will be deemed paid as liquidated
damages.

     3. Representations and Warranties of the Company. The representations and warranties of the
Company set forth in Article II of the Investment Agreement are incorporated herein by this
reference and are made by the Company to the Series B-2 Backstop Investors,

 

 

subject to the qualifications set forth in Article II of the Investment Agreement, including
the qualifications and exceptions contained in the Company Disclosure Letter notwithstanding that
the Series B-2 Backstop Investors party to this letter agreement have hereby waived their right to
receive a copy of the Company Disclosure Letter unless and until each has signed a confidentiality
agreement in the form of Exhibit C attached hereto (a “Confidentiality Agreement”). A copy
of the Company Disclosure Letter will be delivered to each Series B-2 Backstop Investor promptly
upon execution by such investor of a Confidentiality Agreement. A copy of the Investment
Agreement, together with any amendments or supplements thereto, in effect as of the date hereof,
has been delivered to the Series B-2 Backstop Investors, but the Company Disclosure Letter has not
been delivered to the Series B-2 Backstop Investors. Each Series B-2 Backstop Investor agrees to
be bound by and charged with the knowledge of all of the exceptions and disclosures in the Company
Disclosure Letter, including without limitation, exceptions to the covenants in Article IV of the
Investment Agreement.

     Except as and to the extent expressly set forth in this letter agreement or incorporated by
reference to the Investment Agreement as provided in the immediately preceding paragraph, the
Company makes no representations or warranties whatsoever, and disclaims all liability and
responsibility for any representation, warranty, statement made or information communicated (orally
or in writing) to any Series B-2 Backstop Investor (including, but not limited to, the information
memorandum furnished to any Series B-2 Backstop Investor in connection with their consideration of
an investment in the Company and any opinion, information or advice which may have been provided to
any Series B-2 Backstop Investor or any of their respective Affiliates, by any officer,
stockholder, director, employee, engineering or accounting firm, legal counsel or any other agent,
consultant or representative of such party, as applicable).

     4. Representations, Warranties and Covenants of the Series B-2 Backstop Investors. The
representations and warranties of Centerbridge and the Purchaser set forth in Article III of the
Investment Agreement, other than Section 3.8(a) thereof, are incorporated herein by this reference,
mutatis mutandis substituting references therein to Centerbridge and the Purchaser with references
to each Series B-2 Backstop Investor, and are made by each Series B-2 Backstop Investor to the
Company.

     Each such Series B-2 Backstop Investor acknowledges that it and its representatives has
received or been afforded the opportunity to review prior to the date hereof all written materials
that the Company was requested to deliver or make available, as the case may be, to such Series B-2
Backstop Investor pursuant to this letter agreement on or prior to the date hereof; provided,
however, that the Company has not provided any information to the Series B-2 Backstop Investors
executing this agreement that it considers to be of a confidential nature as such Series B-2
Backstop Investors have expressly waived their right to receive such information. Such Series B-2
Backstop Investors have no Knowledge of any facts or circumstances that could reasonably be
expected to constitute a breach of the representations and warranties of the Company in this letter
agreement (including such representations and warranties incorporated by reference from the
Investment Agreement).

     5. No Survival of Representations and Warranties. None of the representations and warranties
in this letter agreement (or incorporated by reference in this letter agreement) or in any
instrument delivered pursuant to this letter agreement shall survive the Closing.

 

 

     6. Covenants. The covenants set forth in Sections 4.5 and 4.7 through 4.11 of the Investment
Agreement are incorporated herein by this reference, mutatis mutandis substituting references
therein to Centerbridge and the Purchaser with references to each Series B-2 Backstop Investor and
subject to the exceptions set forth in the Disclosure Letter, and are obligations of the Company to
each Series B-2 Backstop Investor and of each Series B-2 Backstop Investor to the Company;
provided, however, that no Series B-2 Backstop Investor that is a party hereto shall have any
rights under Section 4.6 of the Investment Agreement unless and until such Series B-2 Backstop
Investor executes and delivers to the Company a confidentiality agreement having terms no less
favorable to the Company nor more favorable to such Series B-2 Backstop Investor than the
respective terms of the confidentiality agreement attached as Exhibit A to the Approval Order,
provided, further, however, that any consent given by Centerbridge to Company actions pursuant to
Section 4.5 will be deemed consent of the Series B-2 Backstop Investors unless the Series B-2
Backstop Investors unanimously object to such Centerbridge consent within three (3) business days
of receiving notice from the Company of such Centerbridge consent. The Company agrees to provide
the Backstop Investors with notice of any Centerbridge consent to any actions pursuant to Section
4.5 of the Investment Agreement within one (1) business day after Centerbridge gives such consent.

     As provided in the Plan, if (i) the resolution by the Debtors of an objection to the Plan or
Disclosure Statement made by or on behalf of a holder of a Class 5B Claim or (ii) the resolution of
any appeal to the approval of the terms of the Global Settlement with Appaloosa Management, L.P. or
any affiliate thereof would require, in either such case, a payment to be made or other
consideration to be provided to such party (collectively, the “Dispute Resolution”), the
Debtors may agree to such resolution only with the reasonable consent of the Series B-2 Backstop
Investors and Centerbridge.

     7. Notice of Certain Events. Each Series B-2 Backstop Investor will promptly notify the
Company of any event or circumstance that at any time during the term of this letter agreement
could (a) result in or reasonably be expected to result in any portion of the Series B-2 Purchase
Price not being available to any Series B-2 Backstop Investor, or (b) hinder or reasonably be
expected to hinder any Series B-2 Backstop Investor’s ability to perform its obligations hereunder.
No such notice will limit, alter or amend any Series B-2 Backstop Investor’s obligations under
this letter agreement.

     8. Approval Motion; Commitment Order. The Company’s obligations hereunder are subject to
approval by the Bankruptcy Court of the transactions contemplated hereby and, where applicable,
with respect to each individual Series B-2 Backstop Investor, receipt of an executed
Confidentiality Agreement. The Company agrees (i) to file a motion (the “Approval
Motion”), in form and substance reasonably satisfactory to the Series B-2 Backstop Investors,
within ten business days following the signing of this letter agreement, seeking an order of the
Bankruptcy Court approving this letter agreement and the payment of the Series B-2 Commitment Fee
provided for herein, and the release and exculpation of the Series B-2 Backstop Investors, their
affiliates, representatives and advisors from any liability for participation in the commitment to
purchase Series B Preferred Stock pursuant to this Agreement (but excluding any liability for
breach of this Agreement or their willful misconduct or gross negligence related thereto) to the
fullest extent permitted under applicable law (such release and exculpation, the “Release”
and such order, the “Commitment Order”), (ii) the Commitment Order shall have been entered
by the

 

 

Bankruptcy Court within twenty-five calendar days after the motion seeking the same is filed,
and (iii) the Commitment Order shall not have been stayed, modified or vacated within ten calendar
days after the Commitment Order shall have been entered by the Bankruptcy Court. The Company will
use its reasonable best efforts to ensure that the Commitment Order approves the Release.

     9. Term. This letter agreement shall terminate and be of no further force or effect upon the
earlier of (a) both the consummation of the Closing and the payment in full of the Series B-2
Purchase Price by each Series B-2 Backstop Investor or (b) the termination of the Investment
Agreement in accordance with its terms. Each Backstop Party shall have the right to terminate this
letter agreement with respect to its individual commitment hereunder in the event that (x) the
Approval Motion or the Commitment Order are not filed and entered (including the requirement of
such order not being stayed, modified or vacated), respectively, within the time periods set forth
in Section 8 hereof, (y) a Dispute Resolution is entered into by the Company without the consent of
all of the Series B-2 Backstop Investors or (z) the Closing has not occurred on or before February
28, 2008.

     10. Notices. Any notice or other communication required to be given hereunder will be in
writing, and sent by reputable courier service (with proof of service), by hand delivery, or by
email or facsimile (followed on the same day by delivery by courier service (with proof of
delivery) or by hand delivery), addressed as follows:

     If to any Series B-2 Backstop Investor:

To the address, email or facsimile set forth beneath such Series B-2 Backstop
Investor’s signature on the signature page to this letter agreement.

     With a copy to:

Stroock & Stroock & Lavan LLP

180 Maiden Lane

New York, New York 10038-4982

Attention:      Kristopher M. Hansen

Email:              khansen@stroock.com

Fax:                 (212) 806-6006

and

Attention:      Brett Lawrence

Email:              blawrence@stroock.com

Fax:                 (212) 806-6006

     If to the Company or New Dana:

Dana Corporation (or the name of New Dana)

4500 Dorr Street

Toledo, OH 43615

Attention:      General Counsel and Secretary

 

 

Email:

Fax:                  (419) 535-4544

     With copies to:

Jones Day

222 East 41st Street

New York, New York 10017

Attention:      Corinne Ball

Email:              cball@jonesday.com

Fax:                  (212) 755-7306

and

Attention:       Marilyn W. Sonnie

Email:               mwsonnie@jonesday.com

Fax:                  (212) 755-7306

     If to Centerbridge or Purchaser:

Centerbridge Capital Partners, L.P.

375 Park Avenue, 12th Floor

New York, NY 10152

Attention:      Jeffrey Aronson

Email:              jaronson@centerbridge.com

Fax:                 (212) 672-6501

and

Attention:      David Trucano

Email:             dtrucano@centerbridge.com

Fax:                 (212) 672-6501

     With copies to:

Willkie Farr & Gallagher LLP

787 Seventh Avenue

New York, New York 10019

Attention:      Matthew A. Feldman

Email:              mfeldman@wilkie.com

Fax:                 (212) 728-9651

and

Attention:      Jeffrey R. Poss

Email:              jposs@wilkie.com

Fax:                 (212) 728-9536

 

 

or to such other address as any party will specify by written notice so given, and such notice will
be deemed to have been delivered as of the date so telecommunicated or personally delivered.

     11. Jurisdiction; Consent to Service of Process. (a) Each party hereby irrevocably and
unconditionally submits, for itself and its property, to the exclusive jurisdiction of the
Bankruptcy Court, and any appellate court from any such court, in any suit, action or proceeding
arising out of or relating to this letter agreement or the transactions contemplated hereby, or for
recognition or enforcement of any judgment resulting from any such suit, action or proceeding, and
each party hereby irrevocably and unconditionally agrees that all claims in respect of any such
suit, action or proceeding may be heard and determined in the Bankruptcy Court.

     (b) It will be a condition precedent to each party’s right to bring any such suit, action or
proceeding that such suit, action or proceeding, in the first instance, be brought in the
Bankruptcy Court, and if each such court refuses to accept jurisdiction with respect thereto, such
suit, action or proceeding may be brought in any other court with jurisdiction.

     (c) No party may move to (i) transfer any such suit, action or proceeding from the Bankruptcy
Court to another jurisdiction, (ii) consolidate any such suit, action or proceeding brought in the
Bankruptcy Court with a suit, action or proceeding in another jurisdiction, or (iii) dismiss any
such suit, action or proceeding brought in the Bankruptcy Court for the purpose of bringing the
same in another jurisdiction.

     (d) Each party hereby irrevocably and unconditionally waives, to the fullest extent it may
legally and effectively do so, (i) any objection which it may now or hereafter have to the laying
of venue of any suit, action or proceeding arising out of or relating to this letter agreement in
the Bankruptcy Court, (ii) the defense of an inconvenient forum to the maintenance of such suit,
action or proceeding in any such court, and (iii) the right to object, with respect to such suit,
action or proceeding, that such court does not have jurisdiction over such party. Each party
irrevocably consents to service of process in any manner permitted by law.

     12. Miscellaneous. This letter agreement (a) may be executed in any number of counterparts,
each of which shall be deemed to be an original but all of which together shall be deemed to be one
and the same agreement, (b) shall be governed by and construed in accordance with the laws of the
State of New York without giving effect to its conflicts of laws principles, (c) constitutes the
entire agreement of the parties with respect to the subject matter hereof and supersedes all other
prior agreements and understandings, both written and oral, of the parties with respect to the
subject matter of this letter agreement, and (d) may be amended only by a writing signed by each of
the parties hereto; provided, however, that no provision of the Investment Agreement incorporated
into this Agreement may be amended in a manner that adversely affects any one of the Series B-2
Backstop Investors without the written consent of each of the Series B-2 Backstop Investors and
this Agreement may not be amended in a manner that adversely affects Centerbridge without the
written consent of Centerbridge. No provision of this letter agreement is intended to confer any
rights, benefits, remedies, obligations or liabilities hereunder upon any person other than the
parties hereto and their respective successors and permitted assigns. This letter agreement is not
assignable by any of the parties hereto without the prior written consent of the other party.

 

 

	 	 	 	 	 	 
	 	 	Avenue Special Situations Fund IV, L.P.
	 

	 	By:
	 	Avenue Capital Partners IV, LLC, its General Partner
	 

	 	By:
	 	GL Partners IV, LLC, its General Partner
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Sonia Gardner
	 

	 	 	 	 
	 

	 	 	 	Name: Sonia Gardner
	 

	 	 	 	Title:
	 
	 	 	 	 
	 
	 	 	 	 
	 	 	Avenue Special Situations Fund V, L.P.
	 

	 	By:
	 	Avenue Capital Partners V, LLC, its General Partner
	 

	 	By:
	 	GL Partners V, LLC, its General Partner
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Sonia Gardner
	 

	 	 	 	 
	 

	 	 	 	Name: Sonia Gardner
	 

	 	 	 	Title:
	 
	 	 	 	 
	 
	 	 	 	 
	 	 	Avenue International, Ltd.
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Sonia Gardner
	 

	 	 	 	 
	 

	 	 	 	Name: Sonia Gardner
	 

	 	 	 	Title:
	 
	 	 	 	 
	 
	 	 	 	 
	 	 	Avenue Investments, L.P.
	 

	 	By:
	 	Avenue Partners, LLC, its General Partner
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Sonia Gardner
	 

	 	 	 	 
	 

	 	 	 	Name: Sonia Gardner
	 

	 	 	 	Title:
	 
	 	 	 	 
	 
	 	 	 	 
	 	 	Avenue-CDP Global Opportunities Fund, L.P.
	 

	 	By:
	 	Avenue Global Opportunities Fund GenPar, LLC its

General Partner
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Sonia Gardner
	 

	 	 	 	 
	 

	 	 	 	Name: Sonia Gardner

Title:
	 
	 	 	 	 

	 	 	 	 	 
	 

	 	Address for Notices:
	 	535 Madison Avenue 14th Floor

New York, NY 10022

 

 

	 	 	 	 	 	 
	 	 	Dune Capital Management LP
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Joshua P. Eaton
	 

	 	 	 	 
	 

	 	 	 	Name: Joshua P. Eaton
	 

	 	 	 	Title: General Counsel

	 	 	 	 	 
	 

	 	Address for Notices:
	 	c/o Dune Capital Management LP 

623 Fifth Avenue, 30th Floor 

New York, NY 10022 

Attn: Joshua P. Eaton, General Counsel 

Fax: 646-885-2452 

Email: josheaton@dunecapital.com

 

 

	 	 	 	 	 	 
	 	 	Franklin Mutual Advisers, LLC
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Shawn Tumulty
	 

	 	 	 	 
	 

	 	 	 	Name: Shawn Tumulty

Title: Vice President
	 
	 	 	 	 

	 	 	 	 	 
	 

	 	Address for Notices:
	 	101 JFK Parkway 

Short Hills, NJ 07078

 

	 	 	 	 	 	 
	 	 	QDRF Master Ltd.
	 

	 	By:
	 	Quadrangle Debt Recovery Advisors LP
	 

	 	Its:
	 	Advisor
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Andrew Herenstein
	 

	 	 	 	 
	 

	 	 	 	Name: Andrew Herenstein
	 

	 	 	 	Title: Managing Principal
	 
	 	 	 	 
	 
	 	 	 	 
	 	 	Quadrangle Debt Opportunities Fund Master Ltd
	 

	 	By:
	 	Quadrangle Debt Recovery Advisors LP
	 

	 	Its:
	 	Advisor
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Andrew Herenstein
	 

	 	 	 	 
	 

	 	 
	 	Name: Andrew Herenstein
	 

	 	
	 	Title: Managing Principal
	 
	 	 	 	 
	 
	 	 	 	 
	 	 	Quadrangle Debt Recovery Income Fund Master Ltd
	 

	 	By:
	 	Quadrangle Debt Recovery Advisors LP
	 

	 	Its:
	 	Advisor
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Andrew Herenstein
	 

	 	 	 	 
	 

	 	 	 	Name: Andrew Herenstein
	 

	 	 	 	Title: Managing Principal

	 	 	 	 	 
	 

	 	Address for Notices:
	 	375 Park Avenue, 14th Fl 

New York, NY 10152

 

	 	 	 	 	 	 
	 	 	Silver Point Capital Fund, L.P.
	 

	 	By:
	 	Silver Point Capital, L.P., its investment manager
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Michael Gatto
	 

	 	 	 	 
	 

	 	 	 	Name: Michael Gatto
	 

	 	 	 	Title:
	 
	 	 	 	 
	 
	 	 	 	 
	 	 	Silver Point Capital Offshore Fund, L.P.
	 

	 	By:
	 	Silver Point Capital, L.P., its investment manager
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Michael Gatto
	 

	 	 	 	 
	 

	 	 	 	Name: Michael Gatto
	 

	 	 	 	Title:

 

	 	 	 	 	 	 
	 	 	Davidson Kempner Capital Management LLC and Affiliates
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Avi Friedman
	 

	 	 	 	 
	 

	 	 	 	Name: Avi Friedman
	 

	 	 	 	Title: Managing Member

	 	 	 	 	 
	 

	 	Address for Notices:
	 	65 East 55th, Suite 1900 

New York, NY 10022

 

	 	 	 	 	 

	 	 	 	 	 
	ACKNOWLEDGED and AGREED
	As of this 18th day of October 2007:
	 
	 	 	 	 
	DANA CORPORATION
	 
	 	 	 	 
	By:

	 	/s/ Marc S. Levin
	 

	 	 
	 

	 	Name: Marc S. Levin
	 

	 	Title: Acting Secretary
	 
	 	 	 	 
	ACKNOWLEDGED, AGREED AND CONSENTED TO:

As of this 18th day of October 2007:
	 
	 	 	 	 
	CENTERBRIDGE CAPITAL PARTNERS, L.P.

	By:

	 	Centerbridge Associates, L.P.,

its general partner

By: Centerbridge GP Investors, LLC

        its general partner	 	 
	 
	 	 	 	 
	By:

	 	/s/ Jeff Aronson
	 

	 	 
	 

	 	Name: Jeff Aronson
	 

	 	Title:   Authorized Person	 	 
	 
	 	 	 	 
	CENTERBRIDGE CAPITAL PARTNERS STRATEGIC, L.P.
	By:

	 	Centerbridge Associates, L.P.,

its general partner

By: Centerbridge GP Investors, LLC,

        its general partner	 	 
	 
	 	 	 	 
	By:

	 	/s/ Jeff Aronson
	 

	 	 
	 

	 	Name: Jeff Aronson
	 

	 	Title:   Authorized Person	 	 
	 
	 	 	 	 
	CENTERBRIDGE CAPITAL PARTNERS SBS, L.P.
	By:

	 	Centerbridge Associates, L.P.,

its general partner

By: Centerbridge GP Investors, LLC,

        its general partner	 	 

 

 

	 	 	 	 	 
	By:

	 	/s/ Jeff Aronson
	 

	 	 
	 

	 	Name: Jeff Aronson
	 

	 	Title:   Authorized Person

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