Document:

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                                                                    EXHIBIT 10.8

                              TAX SHARING AGREEMENT

                                     between

                               FORD MOTOR COMPANY,
                               on behalf of itself
                             and the FORD AFFILIATES

                                       and

                               VISTEON CORPORATION
                               on behalf of itself
                           and the VISTEON AFFILIATES

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                               TABLE OF CONTENTS

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<S>      <C>                                                                                 <C>
1.       Definitions............................................................................2

2.       Administrative and Compliance Matters..................................................6
         (a)      Designation of Agent..........................................................6
         (b)      Pre-Distribution Tax Period Ford Consolidated Returns.........................7
         (c)      Allocation....................................................................7
         (d)      Other Visteon Returns.........................................................7
         (e)      Post-Distribution Conduct of Visteon..........................................7
         (f)      Deductions and Certain Taxes Related to Options...............................7
         (g)      Employee Assignment Agreement.................................................8

3.       Tax Sharing............................................................................8
         (a)      General.......................................................................8
         (b)      Estimated Payments............................................................8
         (c)      Payment of Taxes at Year-End..................................................8
         (d)      Tax Adjustments...............................................................9
         (e)      Allocation of Tax Assets.....................................................10
         (f)      R&E Credit Base Period.......................................................10
         (g)      Visteon Carrybacks...........................................................10
         (h)      Use of Visteon Tax Assets....................................................10
         (i)      Restructuring Taxes..........................................................11

4.       Certain Representations and Covenants.................................................11
         (a)      Representations..............................................................11
                  (i)      Visteon Representations.............................................11
                  (ii)     Ford Representations................................................11
                  (iii)    Visteon and Ford Representations....................................11
                  (iv)     Visteon and Ford Covenants..........................................11
         (b)      Visteon Covenants............................................................12
         (c)      Exceptions...................................................................13
         (d)      Supplemental Rulings.........................................................13

5.       Indemnities...........................................................................14
         (a)      Visteon Indemnity............................................................14
         (b)      Ford Indemnity...............................................................15
         (c)      Discharge of Indemnity.......................................................16

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<S>      <C>                                                                                 <C>
6.       Subsidiaries..........................................................................16
         (a)      Performance..................................................................16
         (b)      Application to Present and Future Subsidiaries...............................16
         (c)      Disposition of a Ford Affiliate..............................................17

7.       Communication and Cooperation.........................................................17
         (a)      Consult and Cooperate........................................................17
         (b)      Provision of Tax Return Information..........................................18
         (c)      Failure to Cooperate.........................................................19
         (d)      Provision of Information Relating to Material
         Developments..........................................................................19

8.       Tax Proceedings.......................................................................19
         (a)      In General...................................................................19
         (b)      Notice.......................................................................20
         (c)      Participation Rights.........................................................20

9.       Payments..............................................................................21
         (a)      Procedure for Making Payments................................................21
         (b)      Setoff.......................................................................21
         (c)      Interest on Late Payments....................................................21
         (d)      Character of Payments........................................................21

10.      Dispute Resolution....................................................................21
         (a)      Scope of Section.............................................................21
         (b)      Initial Notice of Disagreement...............................................22
         (c)      Negotiation..................................................................22
         (d)      Final Notice of Disagreement.................................................22
         (e)      Selection of Independent Third Party.........................................23
         (f)      Determination by Independent Third Party.....................................23
         (g)      Costs and Expenses Associated with Independent Third
         Party.................................................................................24

11.      Notices...............................................................................24

12.      Costs and Expenses....................................................................25
         (a)      Additional Services..........................................................25
         (b)      Other........................................................................25

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<S>      <C>                                                                                   <C>
13.      Termination and Survival..............................................................25

14.      Section Headings......................................................................25

15.      Entire Agreement; Amendments and Waivers; Severability................................25
         (a)      Entire Agreement; Amendments.................................................25
         (b)      Waivers......................................................................26
         (c)      Severability.................................................................26

16.      Governing Law and Interpretation......................................................26

17.      Counterparts..........................................................................26

18.      Assignments; Third Party Beneficiaries................................................26

19.      Further Assurances....................................................................26

20.      Authorization, etc....................................................................27

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                              TAX SHARING AGREEMENT

     This Agreement is entered into as of the 1st day of June, 2000 between
Ford Motor Company ("Ford"), a Delaware corporation, on behalf of itself and the
Ford Affiliates, and Visteon Corporation ("Visteon"), a Delaware corporation, on
behalf of itself and the Visteon Affiliates.

                              W I T N E S S E T H:

     WHEREAS, pursuant to the tax laws of various jurisdictions, certain Visteon
Affiliates as defined below, presently file certain tax returns on an
affiliated, consolidated, combined, unitary, fiscal unit or other group basis
(including as permitted by Section 1501 of the Internal Revenue Code of 1986, as
amended (the "Code")) with certain Ford Affiliates, as defined below;

     WHEREAS, Ford both directly and indirectly through its subsidiaries
conducts the automaking business and the automotive supply business;

     WHEREAS, Ford has concluded that the separation of its automotive supply
business from its automaking business would (i) alleviate competitive barriers
to expanding Visteon's automotive supply business beyond sales to the Ford
Affiliates, (ii) allow Ford to overcome competitive barriers to making purchases
from third-party automotive suppliers, and (iii) enhance Visteon's ability to
attract employees and permit Visteon to offer employee incentives more directly
tied to the performance of its business;

     WHEREAS, to effectuate the separation of these two businesses, Ford
considers it appropriate to restructure its assets and liabilities both within
and outside the United States (the "RESTRUCTURING") so as to separate Ford's
automotive supply business from its automaking business, which Restructuring
will include (i) the transfer (the "CONTRIBUTION") of the assets (including
stock of subsidiaries) used in connection with the automotive supply business to
Visteon, and (ii) a distribution (the "DISTRIBUTION") (A) to the holders of
Ford's common stock, par value $1.00 per share (other than the Ford Motor
Company Savings and Stock Investment Plan for Salaried Employees and the Ford
Motor Company Tax-Efficient Savings Plan for Hourly Employees (collectively,
the "PLANS")) and the holders of Ford's Class B stock, par value $1.00 per share
of all shares of the common stock of Visteon held by Ford immediately prior to
the Distribution and (B) to the Plans cash in lieu of shares of common stock of
Visteon, on the basis of an amount of cash per share of common stock of Ford
held by the Plans equal to the fair market value of the number of shares of
common stock of Visteon to be distributed with respect to each share of common
stock or Class B stock of Ford

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in the Distribution, with the cash to be used to make such distribution being
all or a portion of the cash previously received from Visteon as a dividend;

     WHEREAS, Ford and Visteon intend that the Contribution and the Distribution
qualify as free of Federal Tax to Ford and those of its stockholders who will
receive common stock of Visteon under Sections 368(a) and 355 of the Code; and

     WHEREAS, the parties wish to (i) provide for the payment of tax liabilities
and entitlement to refunds thereof, allocate responsibility for, and cooperation
in, the filing of tax returns and provide for certain other matters relating to
taxes and (ii) set forth certain covenants and indemnities relating to the
preservation of the tax-free status of the Contribution and the Distribution;

     NOW, THEREFORE, in consideration of the mutual covenants and agreements
hereinafter set forth, the parties agree as follows:

     1. DEFINITIONS.

     As used in this Agreement:

     "AAA" shall have the meaning ascribed to such term in Section 10(e) of this
Agreement.

     "AFTER-TAX AMOUNT" means an additional amount necessary to reflect the
hypothetical Tax consequences of the receipt or accrual of any payment, using
the maximum statutory rate (or rates, in the case of an item that affects more
than one Tax) applicable to the recipient of such payment for the relevant tax
periods, and reflecting for example, the effect of the deductions available for
interest paid or accrued and for Taxes such as state and local income Taxes.

     "ASSIGNED EMPLOYEES" means "Ford Employees," as such term is defined in the
letter agreement between Ford and the International Union, United Automobile,
Aerospace and Agricultural Implement Workers of America dated October 9, 1999.

     "COMBINED STATE TAX" means, with respect to each United States state or
local taxing jurisdiction, any income, franchise or similar Tax payable to such
state or local taxing jurisdiction in which a Visteon Affiliate files Returns
with a Ford Affiliate, on a consolidated, combined or unitary basis for purposes
of such Tax.

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     "DETERMINATION" shall have the meaning ascribed to such term in Section
10(f).

     "DISPUTED ITEM" shall have the meaning ascribed to such term in Section
10(b)(i).

     "DISTRIBUTION DATE" means the date on which the Distribution is effected.

     "EMPLOYEE ASSIGNMENT AGREEMENT" shall have the meaning ascribed to such
term in Section 2(g).

     "EXPENSES" shall have the meaning ascribed to such term in Section 12(b).

     "FEDERAL TAX" means any Tax imposed under the Code, including any interest,
penalty or other additions to Tax imposed under Subtitle F of the Code.

     "FINAL DETERMINATION" means (i) with respect to Federal Taxes, a
"determination" as defined in Section 1313(a) of the Code or execution of an
Internal Revenue Service Form 870AD and, with respect to Taxes other than
Federal Taxes, any final determination of liability in respect of a Tax that,
under applicable law, is not subject to further appeal, review or modification
through proceedings or otherwise, (ii) the expiration of a statute of
limitations or (iii) the payment of or liability for Tax or any other amount
where Ford determines that no action should be taken to recoup such payment or
contest such liability.

     "FINAL NOTICE OF DISAGREEMENT" shall have the meaning ascribed to such term
in Section 10(d)(i).

     "FORD AFFILIATE" means Ford and any corporation or other entity directly or
indirectly controlled by Ford, but excluding any Visteon Affiliate.

     "FORD CONSOLIDATED GROUP" means, at any time, Ford and each corporation or
other entity that joins with Ford, with respect to Federal Taxes, in the filing
of a consolidated Federal Tax Return and with respect to Combined State Taxes,
in the filing of a Combined State Tax Return.

     "FORD INSTALLMENT PAYMENT" means (i) any estimated Federal Tax installment
that Ford is required to pay or (ii) any payment required to be made on the due
date, without extensions, of a Return that Ford is required to file under the
Code, or in either case, any corresponding provision of state or local law.

     "FOREIGN TAX" means any Tax imposed by a Taxing Authority of a jurisdiction
outside the United States.

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     "INDEPENDENT THIRD PARTY" means a nationally recognized tax attorney that
is a member of a nationally recognized law firm which firm is independent of
both parties.

     "INITIAL NOTICE OF DISAGREEMENT" shall have the meaning ascribed to such
term in Section 10(b)(ii).

     "IRS" means the Internal Revenue Service.

     "POST-DISTRIBUTION TAX PERIOD" means (i) any tax period beginning and
ending after the Distribution Date and (ii) with respect to a tax period that
begins on or before and ends after the Distribution Date, such portion of the
tax period that commences on the day immediately after the Distribution Date.

     "PRE-DISTRIBUTION TAX PERIOD" means (i) any tax period beginning and ending
before or on the Distribution Date and (ii) with respect to a period that begins
on or before and ends after the Distribution Date, such portion of the tax
period ending on and including the Distribution Date.

     "PRIVILEGE" means any privilege or similar evidentiary rule that may be
asserted under applicable law including any privilege arising under or relating
to the attorney-client relationship (including the attorney-client and work
product privileges) and any accountant-client privilege.

     "PRO FORMA COMBINED STATE RETURN" shall have the meaning ascribed to such
term in Section 3(c)(i).

     "PRO FORMA FEDERAL RETURN" shall have the meaning ascribed to such term in
Section 3(c)(i).

     "PRO FORMA RETURNS" shall have the meaning ascribed to such term in Section
3(c)(i).

     "RECIPIENT" shall have the meaning ascribed to such term in Section
10(b)(i).

     "REMITTING PARTY" shall have the meaning ascribed to such term in Section
10(b)(ii).

     "RESTRUCTURING TAX" shall mean any Tax imposed in connection with the
Restructuring on a Ford Affiliate or a Visteon Affiliate that would not have
been imposed had the Restructuring not occurred.

     "RETURN" means any tax return, statement, report or form (including
estimated tax returns and reports, extension requests and forms, information

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returns and reports, amended returns and requests for refunds) required to be
filed with any Tax Authority.

     "RULING DOCUMENTS" means (a) any request for a ruling filed with any Tax
Authority together with any supplemental filings or ruling requests or other
materials subsequently submitted on behalf of Ford, its subsidiaries and/or its
shareholders to such Tax Authority, the appendices and exhibits thereto, and any
rulings issued by a Tax Authority to any Ford Affiliate or Visteon Affiliate, in
connection with the Restructuring or (b) any materials submitted to any outside
counsel in connection with obtaining an opinion relating to the Tax status of
the Restructuring.

     "SUPPLEMENTAL RULING" means any ruling issued after the Distribution Date
(a) by the IRS in connection with the Restructuring or (b) by any other Tax
Authority, addressing the application of a provision of the laws of another
jurisdiction to any transaction undertaken in connection with the Restructuring.

     "SUPPLEMENTAL RULING DOCUMENTS" shall have the meaning ascribed to such
term in Section 4(d)(i).

     "TAX" means any net income, gross income, gross receipts, alternative or
add-on minimum, sales, use, business and occupation, value-added, trade, goods
and services, ad valorem, franchise, profits, license, business royalty,
withholding, payroll, employment, capital, excise, transfer, recording,
severance, stamp, occupation, premium, property, asset, real estate acquisition,
environmental, custom duty, or other tax, governmental fee or other like
assessment or charge of any kind whatsoever, together with any interest and any
penalty, addition to tax or additional amount imposed by a Tax Authority.

     "TAX ASSET" means any Tax Item that may have the effect of reducing any
Tax, including, without limitation, any net operating loss, net capital loss,
investment tax credit, foreign tax credit, or charitable deduction or any
deductions and credits related to alternative minimum taxes.

     "TAX AUTHORITY" means any governmental authority or any subdivision,
agency, commission or authority thereof or any quasi-governmental or private
body having jurisdiction pursuant to applicable law over the assessment,
determination, collection or imposition of any Tax (including the IRS).

     "TAX ITEM" means any item of income, gain, loss, deduction or credit, or
other attribute that may have the effect of increasing or decreasing any Tax.

     "TAX PROCEEDING" means any tax audit, dispute or proceeding (whether
administrative or judicial), including a refund claim or any proceeding arising
therefrom.

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     "VISTEON ACQUISITION TAX" means any Tax imposed by reason of the
application of Section 355(d) or (e) of the Code or any similar state or local
Tax that would not have been imposed had the Distribution not occurred other
than such a tax resulting from an acquisition by one or more persons of a "fifty
percent or greater interest" (within the meaning of Section 355(d)(4) of the
Code) in Ford.

     "VISTEON AFFILIATE" means Visteon and any corporation or other entity
directly or indirectly controlled by Visteon before, on or after the
Distribution Date.

     "VISTEON COMBINED STATE TAX LIABILITY" means, with respect to any tax
period beginning on or after January 1, 2000 and any jurisdiction, an amount of
Combined State Taxes determined in accordance with the principles set forth in
the definition of Visteon Federal Tax Liability.

     "VISTEON FEDERAL TAX LIABILITY" means, with respect to any tax period
beginning on or after January 1, 2000, the Federal Tax liability for such
period, computed in accordance with the positions, elections, accounting
methods, conventions, and computational methodology used by Ford in preparing
the Ford Consolidated Group's Return for such period, but taking into account
only the Tax Items of Visteon Affiliates which are included in such Return for
such tax period. Such computation shall be made (i) as though the highest rate
of tax specified in Section 11(b) of the Code (or any other similar rates
applicable to specific types of income) were the only rate set forth in that
subsection, (ii) by taking into account any Tax that would be imposed on the
Visteon Affiliates pursuant to Section 55 of the Code to the extent the Ford
Consolidated Group is subject to such Tax, (iii) by not permitting the Visteon
Affiliates any compensation deductions arising in respect of any options on Ford
stock, or any Ford restricted stock and (iv) excluding 8/23 of any deductions
for commissions paid to Ford Export Services B.V. with respect to export sales
by any Visteon Affiliate.

     "VISTEON TAX LIABILITY" means, with respect to any tax period, the sum of
the Visteon Combined State Tax Liability for each jurisdiction and the Visteon
Federal Tax Liability.

     2. ADMINISTRATIVE AND COMPLIANCE MATTERS.

     (a) Designation of Agent. Each Visteon Affiliate hereby irrevocably
authorizes and designates Ford, as its agent, coordinator, and administrator,
for the purpose of taking any and all actions (including the execution of
waivers of applicable statutes of limitation) necessary or incidental to the
filing of any Return or any other Tax proceedings, and for the purpose of making
payments to, or

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collecting refunds from, any Tax Authority, in each case relating only to
Returns described in Section 2(b).

     (b) Pre-Distribution Tax Period Ford Consolidated Returns. Ford will
prepare, with the assistance of the Visteon Affiliates, the consolidated Federal
Tax Returns and Combined State Tax Returns of the Ford Consolidated Group for
all Pre-Distribution Tax Periods. Except as provided in the next sentence with
respect to such Returns, Ford shall determine (i) the manner in which any Tax
Item shall be reported, (ii) whether any extensions should be requested, and
(iii) the elections that will be made by any Ford Affiliate. Subject to Ford's
approval, Visteon may decide (i) the manner in which any Visteon Tax Item of any
Visteon Affiliate shall be reported, and (ii) the elections that will be made by
any Visteon Affiliate. Ford shall have the exclusive right to (i) file,
prosecute, compromise or settle any claim for refund, and (ii) determine whether
any refunds to which the Ford Consolidated Group may be entitled shall be
received by way of refund or credit against the Tax liability of the Ford
Consolidated Group.

     (c) Allocation. Ford may, at its option, elect and the Visteon Affiliates
shall, if necessary for a valid election, join Ford in electing to ratably
allocate Tax Items of the Visteon Affiliates in accordance with relevant
provisions of the Treasury Regulations Section 1.1502-76. If Ford exercises its
option to make the election, each Visteon Affiliate will provide a statement
stating its consent to such election as required under the regulations.

     (d) Other Visteon Returns. Visteon shall be solely responsible for the
preparation and filing of all other Returns of the Visteon Affiliates other than
Returns described in Section 2(b). Visteon shall be responsible for paying to
the applicable Tax Authorities all Taxes shown as due from Visteon or any
Visteon Affiliates on such Returns.

     (e) Post-Distribution Conduct of Visteon. On or after the Distribution
Date, Visteon will not, nor will it permit any Visteon Affiliate to, make or
change any accounting method, change its taxable year, amend any Return or take
any Tax position on any Return, take any other action, omit to take any action
or enter into any transaction that may reasonably be expected to result in and
does result in any increased Tax liability or reduction of any Tax Asset of the
Ford Consolidated Group or any Ford Affiliate.

     (f) Deductions and Certain Taxes Related to Options. Ford shall file
Returns claiming (i) the Tax deductions attributable to options to purchase
stock of Ford or other Ford long-term incentive compensation held by employees
and former employees of any Visteon Affiliate, (ii) any deductions for current
or deferred compensation incurred or paid by Ford, and (iii) any other similar

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compensation related Tax deductions. The Returns of the Ford Affiliates and the
Visteon Affiliates shall reflect the entitlement of Ford to such deductions.
Ford shall prepare and file all applicable Returns and pay the related Tax
liability under the Federal Insurance Contributions Act, the Federal
Unemployment Tax Act or any state employment tax law.

     (g) Employee Assignment Agreement. Ford shall file Returns which reflect
Ford's receipt of payments under the Hourly Employee Assignment Agreement
between Ford and Visteon dated as of April 1, 2000 (the "EMPLOYEE ASSIGNMENT
AGREEMENT") as income to Ford and payments made by Ford to the Assigned
Employees as a compensation or other expense of Ford. The Visteon Affiliates
shall file Returns which treat payments made to Ford under the Employee
Assignment Agreement in a manner consistent with the preceding sentence.

     3. TAX SHARING.

     (a) General. For each tax period of the Ford Consolidated Group beginning
on or after January 1, 2000 during which any Tax Item of any Visteon Affiliate
is includible in the consolidated Federal Tax Return of the Ford Consolidated
Group, Visteon shall pay to Ford an amount equal to the Visteon Federal Tax
Liability, and for each tax period beginning on or after January 1, 2000 during
which any Tax Item of any Visteon Affiliate is includible in a Return relating
to a Combined State Tax, Visteon shall pay Ford an amount equal to the Visteon
Combined State Tax Liability for such tax period, each as shown on the Pro Forma
Returns.

     (b) Estimated Payments. Ford shall determine the amount of the
corresponding Visteon Federal Tax Liability, or the Visteon Combined State Tax
Liability, as the case may be, in connection with any Ford Installment Payment
made with respect to any Pre-Distribution Tax Period. Ford shall provide Visteon
with notice of such determination no later than 10 days before the date that the
applicable payment by Ford is due. Visteon shall, no later than 1 day prior to
the due date of Ford's payment, pay to Ford the amount so determined.

     (c) Payment of Taxes at Year-End.

          (i) Not later than 30 days after the due date (including all
     extensions) for the Ford Consolidated Group's Federal Tax Return, Ford
     shall deliver to Visteon a pro forma Federal Tax Return (a "PRO FORMA
     FEDERAL RETURN") reflecting the Visteon Federal Tax Liability. Not later
     than 30 days after the due date (including all extensions) for each
     Combined State Tax Return, Ford shall deliver to Visteon the relevant pro

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     forma Combined State Tax Return (each a "PRO FORMA COMBINED STATE RETURN"
     and together with the Pro Forma Federal Return, the "PRO FORMA RETURNS")
     reflecting the relevant Visteon Combined State Tax Liability. The Pro Forma
     Returns shall be prepared in good faith in a manner generally consistent
     with past practice. Each Pro Forma Return shall be delivered together with
     a statement showing a calculation of the amount to be paid pursuant to
     Section 3(c)(ii).

          (ii) Not later than 10 days after the receipt of each Pro Forma
     Return, Visteon shall pay to Ford, or Ford shall pay to Visteon, as
     appropriate, an amount equal to the difference, if any, between (A) the
     Visteon Federal Tax Liability, if any, or (B) the Visteon Combined State
     Tax Liability, if any, as the case may be, reflected on such Pro Forma
     Return for such period and the aggregate of any payments made by Visteon
     pursuant to Section 3(b) in respect of such period.

     (d) Tax Adjustments.

          (i) Except as otherwise provided in this Agreement, Ford shall be
     liable for any Tax increase, and shall be entitled to any refund or other
     benefit, that results from any Tax Proceeding relating to any Tax Return of
     the Ford Consolidated Group. Except as otherwise provided in this
     Agreement, Visteon shall be liable for any Tax increase, and shall be
     entitled to any Tax refund or other benefit, that results from any Tax
     Proceeding relating to any Tax Return of any Visteon Affiliate other than a
     Tax Return of the Ford Consolidated Group or a Ford Affiliate.

          (ii) If any Tax Proceeding described in Section 3(d)(i) (other than an
     adjustment described in Section 3(d)(iv)) results in (A) an increase or
     decrease in a Tax Item of either a Ford Affiliate or a Visteon Affiliate,
     for a particular tax period, and (B) a corresponding increase or decrease
     in a Tax Item of the other party for a different period (other than by way
     of Tax carrybacks or carryovers), the party incurring a Tax benefit shall
     pay to the party incurring a Tax detriment the lesser of the amount of such
     benefit and the amount of such detriment. The amount of any payments made
     pursuant to this Section 3(d) shall be determined by employing the highest
     rate of Tax specified in Section 11(b) of the Code or the corresponding
     provision of any applicable state or local Tax. The amount of any Tax
     benefit or detriment shall be determined taking into account interest
     received from or paid to the relevant Tax Authority. Payments required
     under this Section 3(d)(ii) shall be made at the later of (A) such time or
     times that the Tax benefits is realized as a refund, a reduction of Tax
     shown on a Return, or a result of a Tax Authority offsetting the amount

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     due and (B) such time or times that the Tax detriment is realized as an
     additional assessed amount or as an increase of Tax shown on a Return. The
     party incurring the Tax detriment shall have the right to review the Tax
     benefit utilization by the other party.

          (iii) In the event that as a result of a Final Determination or
     otherwise, Ford is liable for a Tax relating to the Assigned Employees for
     which it is not compensated by Visteon under the Employee Assignment
     Agreement, Visteon shall pay Ford an amount equal to such Tax, excluding
     any portion of such Tax that relates to penalties.

          (iv) In the event that there is a Final Determination that results in
     a disallowance of a deduction taken by a Ford Affiliate pursuant to Section
     2(f), Visteon shall pay to Ford an amount equal to such disallowance
     determined by employing the highest rate of Tax specified in Section 11(b)
     of the Code or the corresponding provision of any applicable state or local
     law.

     (e) Allocation of Tax Assets.

          (i) Except as set forth in Section 3(e)(ii), and except to the extent
     applicable law or regulations expressly so require, no Tax Assets will be
     allocated to a Visteon or any Visteon Affiliate for use in Post-
     Distribution Tax Periods. Ford will allocate to a Visteon Affiliate only
     that portion, if any, of particular Tax Assets for use in Post-Distribution
     Tax Periods as applicable law or regulations expressly require to be so
     allocated.

          (ii) Ford shall allocate to Visteon a portion of the credit arising as
     a result of a payment by Ford under Section 55 of the Code.

     (f) R&E Credit Base Period. Ford will make the allocations to Visteon
required under Section 41(f)(3) of the Code. Visteon agrees that it shall not
deviate from the amount of qualified research expenditures allocated to it by
Ford.

     (g) Visteon Carrybacks. Whenever permitted to do so by applicable law,
Visteon shall elect to relinquish any carryback period which would include any
Pre-Distribution Tax Period.

     (h) Use of Visteon Tax Assets. Ford shall have no obligation to indemnify
Visteon for the use by any Ford Affiliate of any Tax Asset of any Visteon
Affiliate.

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     (i) Restructuring Taxes. Notwithstanding any other provision of this
Agreement or of any other agreement between a Ford Affiliate and a Visteon
Affiliate, Visteon shall bear the burden of any Visteon Acquisition Tax. In
addition, Visteon shall bear the burden of: (A) any transfer (including sales
and use, real estate transfer and property taxes), stamp, recording or similar
Tax imposed in connection with the Restructuring on a Ford Affiliate or a
Visteon Affiliate, including any Foreign Taxes that are not "income, war
profits, and excess profits taxes" within the meaning of Part II of Subchapter A
of Chapter 1 of the Code; (B) any Restructuring Taxes that relate to Visteon
Global Technologies, Inc.; (C) any Brasilian Tax imposed on a Visteon Affiliate
in connection with the acquisition of the Visteon business from Ford Brasil
Ltda; and (D) any Restructuring Tax for which a Visteon Affiliate otherwise has
an obligation to indemnify Ford under a provision of this Agreement other than
this Section 3(i). Ford shall bear the burden of all other Restructuring Taxes.

     4. CERTAIN REPRESENTATIONS AND COVENANTS.

     (a) Representations.

          (i) Visteon Representations. Each Visteon Affiliate represents that
     the information and representations furnished in any Ruling Document (as
     modified, qualified or elaborated in any subsequent Ruling Documents) are
     accurate and complete as of the date hereof, to the extent that such
     information and representations relate to a Visteon Affiliate or the
     business or activities of such entity.

          (ii) Ford Representations. Each Ford Affiliate represents that, as of
     the date hereof, there is no plan or intention to take any action
     inconsistent with the information and representations furnished in any
     Ruling Document (as modified, qualified or elaborated in any subsequent
     Ruling Documents).

          (iii) Visteon and Ford Representations. Each Visteon Affiliate and
     each Ford Affiliate, respectively, represents that, as of the date hereof,
     it is not aware of any plan or intention by the current shareholders of
     Ford to sell, exchange, transfer by gift, or otherwise dispose of any of
     their stock in, or securities of, Ford or Visteon subsequent to the
     Distribution, except as described in any Ruling Document (as modified,
     qualified or elaborated in any subsequent Ruling Documents).

          (iv) Visteon and Ford Covenants. Each Visteon Affiliate and each Ford
     Affiliate, respectively, covenants (A) to use its best efforts to verify
     that the foregoing representations made by it in this Section 4(a) are

                                       11

<PAGE>   16

     accurate and complete as of the Distribution Date and (B) if, after the
     date hereof, it obtains information indicating, or otherwise becomes aware,
     that any such representations are or may be inaccurate or incomplete,
     promptly to inform Ford or Visteon, as the case may be.

     (b) Visteon Covenants. Visteon covenants to Ford that:

          (i) No Visteon Affiliate will take any action or fail to take any
     action, which action or failure to act would cause the Contribution and
     Distribution to fail to qualify under Sections 351(a), 355(a) and
     368(a)(1)(D) of the Code or any corresponding provision of state or local
     law. Without limiting the foregoing, the Visteon Affiliates covenant to
     Ford that:

               (A) During the two-year period following the Distribution Date,
          Visteon will not liquidate, merge or consolidate with any other
          person.

               (B) During the two-year period following the Distribution Date,
          the Visteon Affiliates will not sell, exchange, distribute or
          otherwise dispose of assets with an aggregate gross fair market value
          of greater than $500 million except in the ordinary course of
          business.

               (C) Following the Distribution, Visteon will, for a minimum of
          two years, continue the active conduct of the historic business as
          transferred to it in the Contribution.

               (D) No Visteon Affiliate will take any action inconsistent with
          the information and representations in the Ruling Documents.

               (E) No Visteon Affiliate will repurchase stock of Visteon in a
          manner contrary to the requirements of Revenue Procedure 96-30 or in
          a manner contrary to the representations made in Ruling Documents.

               (F) No Visteon Affiliate will enter into any negotiations,
          agreements or arrangements with respect to any of the foregoing.

          (ii) No Visteon Affiliate will take or omit to take any action that
     results in any Restructuring Tax being imposed on any Ford Affiliate in
     excess of the amount of such Restructuring Tax for which Ford or such Ford
     Affiliate would be liable under applicable law, based on:

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<PAGE>   17

               (A) any specific agreements between a Ford Affiliate and a
          Visteon Affiliate as to the manner in which the Restructuring and any
          other relevant transactions are to be treated for tax purposes, and

               (B) to the extent not contrary to the agreements described in
          Section 4(b)(ii)(A), the form of the Restructuring and any other
          relevant transactions as set forth in agreements between the Ford
          Affiliates and the Visteon Affiliates.

          (iii) Within the two-year period following the Distribution, Visteon
     will not take any action (including stock issuances, whether pursuant to
     the exercise of options (or similar interests) or otherwise, option grants,
     capital contributions, or redemptions) or omit to take any action which
     may, either alone or in combination with actions or omissions by Visteon or
     any other party, result in the imposition of any Visteon Acquisition Tax.

     (c) Exceptions. (i) The Visteon Affiliates may take actions inconsistent
with the covenants contained in Section 4(b), if:

               (A) Visteon obtains an opinion of counsel, which counsel and
          which opinion are acceptable to Ford in its sole discretion, to the
          effect that such actions will not result in the imposition of any
          additional Restructuring Tax on a Ford Affiliate and will not affect
          the status of the Distribution as tax-free to Ford and its
          shareholders, it being understood that Ford agrees to cooperate with
          Visteon and use its reasonable best efforts to assist Visteon in
          Visteon's attempting to obtain, as expeditiously as possible, any
          opinion described in this Section 4(c)(i)(A); or

               (B) Ford obtains a Supplemental Ruling in accordance with Section
          4(d).

     (d) Supplemental Rulings.

          (i) Ford agrees that at the reasonable request of Visteon, Ford shall
     cooperate with Visteon and use its reasonable best efforts to seek to
     obtain, as expeditiously as possible, a Supplemental Ruling or other
     guidance from a Tax Authority for the purpose of confirming (A) the
     continuing validity of any ruling (including another Supplemental Ruling)
     previously issued by the IRS or any other Tax Authority, or (B)

                                       13

<PAGE>   18

     compliance on the part of a Visteon Affiliate with its obligations under
     this Section 4. However, Ford shall not be obligated to seek a Supplemental
     Ruling unless it reasonably believes that the relevant Tax Authority would
     issue such a ruling. Further, in no event shall Ford file a request for a
     Supplemental Ruling unless Visteon represents that (A) it has read the
     request for the Supplemental Ruling and any materials, appendices and
     exhibits submitted or filed therewith ("SUPPLEMENTAL RULING DOCUMENTS") and
     (B) all information (other than information provided by an external expert)
     and representations, if any, relating to any Visteon Affiliate contained in
     the Supplemental Ruling Documents are true, correct and complete in all
     material respects. Visteon shall reimburse Ford for all reasonable costs
     and expenses incurred by Ford in obtaining a Supplemental Ruling requested
     by Visteon. Visteon hereby agrees that Ford shall have sole and exclusive
     control over the process of obtaining a Supplemental Ruling, and that only
     Ford shall apply for a Supplemental Ruling. Visteon further agrees that it
     shall not seek any guidance from the IRS or any other Tax Authority
     concerning the Restructuring except as set forth in this Section 4(d).

          (ii) If Ford determines to obtain a Supplemental Ruling or other
     guidance after the date of this Agreement: (A) Ford shall keep Visteon
     informed in a timely manner of all material actions taken or proposed to be
     taken in connection therewith; (B) Ford shall (1) reasonably in advance of
     the submission of any such Supplemental Ruling Documents, provide Visteon
     with a draft copy hereof, (2) reasonably consider Visteon's comments on
     such draft copy, and (3) provide Visteon with a final copy of the
     Supplemental Ruling Documents (in each case, omitting only information
     concerning Class B stockholders of Ford as Ford shall reasonably
     determine); and (C) Ford shall provide Visteon with notice reasonably in
     advance of, and Visteon shall have the right to attend, any formally
     scheduled meetings with the Tax Authority (subject to the approval of the
     Tax Authority) that relate to such Supplemental Ruling.

     5. INDEMNITIES.

     (a) Visteon Indemnity. Each Visteon Affiliate will jointly and severally
indemnify each Ford Affiliate against and hold them harmless from:

          (i) any state and local Tax of any Visteon Affiliate, and any Foreign
     Tax of a Visteon Affiliate, excluding any Combined State Tax and excluding
     (for purposes of this Section 5(a)(i)) any Restructuring Tax;

          (ii) any liability or damage (including Restructuring Taxes) resulting
     from a violation by a Visteon Affiliate of (A) any representation

                                       14

<PAGE>   19

     or covenant in a Ruling Document (as such representation or covenant is
     modified, qualified, or elaborated in any subsequent Ruling Documents), (B)
     any representation, covenant or other agreement set forth in this
     Agreement, or (C) any agreements or covenants between a Ford Affiliate and
     a Visteon Affiliate pertaining to the Tax matters;

          (iii) any Visteon Acquisition Tax;

          (iv) any Restructuring Tax allocated to Visteon under this Agreement;

          (v) any Tax increase or Tax detriment allocated to Visteon under
     Section 3(d);

          (vi) any Tax imposed on a Ford Affiliate as a result of Visteon's
     failure to cooperate with Ford under Section 7; and

          (vii) any Tax increase to Ford resulting from Visteon's adoption of a
     position inconsistent with the allocation set out in Section 3(f);

          (viii) all liabilities, costs, expenses (including reasonable expenses
     of investigation and attorneys' fees and expenses), losses, damages,
     assessments, settlements or judgments arising out of or incident to the
     imposition, assessment or assertion of any tax liability or damage
     described in Section 5(a)(i), (ii), (iii), (iv), (v), (vi) or (vii)
     including those incurred in any contest relating to the imposition,
     assessment or assertion of any such tax, liability or damage.

     (b) Ford Indemnity. Each Ford Affiliate will jointly and severally
indemnify each Visteon Affiliate against and hold them harmless from:

          (i) any Ford Consolidated Group Tax liability;

          (ii) any separate state or local Tax and any Foreign Tax of a Ford
     Affiliate;

          (iii) any liability or damage (including Restructuring Taxes)
     resulting from a violation by a Ford Affiliate of any representation or
     covenant in a Ruling Document (as such representation or covenant is
     modified, qualified, or elaborated in any subsequent Ruling Documents);

                                       15

<PAGE>   20

          (iv) any Tax liability resulting from an acquisition by one or more
     persons of a "fifty percent or greater interest" (within the meaning of
     Section 355(d)(4) of the Code) in Ford;

          (v) any Restructuring Tax allocated to Ford under this Agreement;

          (vi) any Tax increase or Tax detriment allocated to Ford under Section
     3(d);

          (vii) any Tax imposed on a Visteon Affiliate (other than a
     Restructuring Tax) as a result of Ford's failure to cooperate with Visteon
     under Section 7; and

          (viii) all liabilities, costs, expenses (including, without
     limitation, reasonable expenses of investigation and attorneys' fees and
     expenses), losses, damages, assessments, settlements or judgments arising
     out of or incident to the imposition, assessment or assertion of any tax
     liability or damage described in Section 5(b)(i), (ii), (iii), (iv), (v),
     (vi) or (vii) including those incurred in any contest to the imposition,
     assessment or assertion of any such tax, liability or damage;

     provided that, Ford will not be required to indemnify Visteon under this
     Section 5(b) to the extent that any liability set forth in this Section
     5(b) is described in Section 5(a).

     (c) Discharge of Indemnity. The Visteon Affiliates and the Ford Affiliates,
respectively, shall discharge their obligations under Sections 5(a) and 5(b),
respectively, by paying the relevant amount to the indemnified party no later
than 30 days after the date of receiving notice from Ford or Visteon of a
payment made, or a liability of a specified amount, based on a Final
Determination.

     6. SUBSIDIARIES.

     (a) Performance. Ford agrees and acknowledges that Ford shall be
responsible for the performance of the obligations of each Ford Affiliate under
this Agreement. Visteon agrees and acknowledges that Visteon shall be
responsible for the performance of the obligations of each Visteon Affiliate
under this Agreement.

     (b) Application to Present and Future Subsidiaries. This Agreement is being
entered into by Ford and Visteon on behalf of themselves and each Ford Affiliate
and each Visteon Affiliate, respectively. This Agreement shall constitute a
direct obligation of each such affiliate and shall be deemed to have been

                                       16

<PAGE>   21

readopted and affirmed on behalf of any corporation or other entity which
becomes a Ford Affiliate or a Visteon Affiliate in the future.

     (c) Disposition of a Ford Affiliate. If a corporation or other entity
ceases to be a Ford Affiliate as a result of a disposition of equity interests
in such entity, such entity shall be released from its obligations under this
Agreement upon such disposition and no Ford Affiliate shall have any obligation
to indemnify any Visteon Affiliate under Section 5(b) for any liability or
damage attributable to actions taken by such entity after such disposition.

     7. COMMUNICATION AND COOPERATION.

     (a) Consult and Cooperate. Visteon and Ford shall consult and cooperate
(and shall cause each Visteon Affiliate or each Ford Affiliate, respectively, to
cooperate) fully at such time and to the extent reasonably requested by the
other party in connection with all matters subject to this Agreement. Such
cooperation shall include:

          (i) the retention, consistent with Ford's past practice, of all
     information pertaining to Tax matters relating to the Ford Affiliates and
     the Visteon Affiliates for the Pre-Distribution Tax Periods, until two
     years after the expiration of all applicable statutes of limitation (giving
     effect to any extension, waiver, or mitigation thereof), including all
     books, records, documentation or other information relating thereto, and
     including the items specified in Appendix A;

          (ii) the provision, upon reasonable request, of the information
     described in Section 7(a)(i), including any necessary explanations of such
     information, and including access to the necessary personnel to provide
     such information or explanations and including the information referenced
     in Appendix A;

          (iii) the execution of any document that may be necessary or helpful
     in connection with any required Return or in connection with any audit,
     proceeding, suit or action; and

          (iv) the procurement of any documentation from a governmental
     authority or a third party that may be necessary or helpful in connection
     with the foregoing.

     Such cooperation also shall include the matters set forth in Section 7(b).

                                       17

<PAGE>   22

     (b) Provision of Tax Return Information.

          (i) Visteon shall provide Ford all documents and information, and make
     available employees and officers of the Visteon Affiliates as Ford
     reasonably requests to prepare any Return described in Section 2(b) or to
     contest any Tax Proceeding for any such Return. Without limiting the
     foregoing, in this regard, Visteon agrees to provide the information set
     forth in Appendix B to this Agreement, on or before the dates set forth
     therein, with respect to the Ford Consolidated Group Return for Federal
     Taxes for 2000, and any Combined State Tax Returns for 2000.

          (ii) In the case of any Return for a Pre-Distribution Tax Period that
     is in Ford's possession and is filed after the date of this Agreement, Ford
     shall provide Visteon access to and allow Visteon to copy that portion of
     each such Return to the extent it relates to any Visteon Affiliate,
     together with all related Tax accounting work papers, not later than 30
     days after the date of filing of such Return.

          (iii) In the case of any Return in Ford's possession that was filed
     before the date of this Agreement, Ford shall use reasonable efforts to
     provide Visteon access to and allow Visteon to copy that portion of each
     such Return to the extent that it relates to any Visteon Affiliate together
     with all related Tax accounting work papers, beginning as soon as
     reasonably practicable after the date of this Agreement, but in no event
     beginning later than 15 days after the Distribution Date.

          (iv) After the date of this Agreement, Ford shall afford Visteon
     access to employees of Ford on a mutually convenient basis during normal
     business hours to the extent such access may reasonably be required by
     Visteon to prepare any Return including any Post-Distribution Tax Period
     Return of Visteon or to contest any Tax Proceeding.

     Notwithstanding any other provision of this Agreement, no Ford Affiliate
shall be required to provide any Visteon Affiliate access to or copies of (i)
any information with respect to which any Ford Affiliate is entitled to assert
the protection of any Privilege, or (ii) any information as to which any Ford
Affiliate is subject to an obligation to maintain the confidentiality of such
information. Ford shall use reasonable efforts to separate any such information
from any other information to which Visteon is entitled to access or to which
Visteon is entitled to copy under this Agreement, to the extent consistent with
preserving Ford's rights under this Section 7.

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<PAGE>   23

     (c) Failure to Cooperate.

          (i) Visteon shall be liable for any Tax imposed on any Ford Affiliate
     that results from the failure of any Visteon Affiliate (A) to cooperate
     under this Section 7 or (B) to keep and to make available to Ford the
     records provided to Visteon by any Ford Affiliate.

          (ii) Ford shall be liable for any Tax imposed on any Visteon Affiliate
     (other than a Restructuring Tax) as a result of the failure of any Ford
     Affiliate to cooperate under this Section 7.

     (d) Provision of Information Relating to Material Developments. Ford and
Visteon shall keep each other fully informed with respect to any material
development relating to the matters subject to this Agreement. The obligations
of Ford and Visteon described in the preceding sentence shall include the
obligations of the parties to inform one another as set forth in Section 8.

     8. TAX PROCEEDINGS.

     (a) In General.

          (i) Visteon shall have the exclusive right, in its sole discretion, to
     control, contest, and represent the interests of any Visteon Affiliate in
     any Tax Proceeding relating to any Return described in Section 2(d) and to
     resolve, settle, or agree to any deficiency, claim or adjustment proposed,
     asserted or assessed in connection with or as a result of any such Tax
     Proceeding. Visteon shall consult with Ford regarding Visteon's conduct of
     any such Tax Proceeding the outcome of which may have an impact on the Tax
     liability of a Ford Affiliate and shall promptly notify Ford of the
     commencement of such Tax Proceeding. After the Distribution Date, Ford and
     Visteon shall cooperate in order to transfer to Visteon the exclusive right
     described in the preceding sentence.

          (ii) Ford shall have the exclusive right, in its sole discretion, to
     control, contest, and represent the interests of any Ford Affiliate or any
     Visteon Affiliate in any Tax Proceeding not specified in Section 8(a)(i),
     and to resolve, settle or agree to any deficiency, claim or adjustment
     proposed, asserted or assessed in connection with or as a result of any
     such Tax Proceeding. Ford's rights shall extend to any matter pertaining to
     the conduct, management and control of a Tax Proceeding, including
     execution of waivers, choice of forum, scheduling of conferences and the
     resolution of any Tax Item. Visteon agrees that no claim against Ford and
     no defense to Visteon's liabilities to Ford under this Agreement shall
     arise

                                       19

<PAGE>   24

     from the resolution by Ford of any deficiency, claim or adjustment relating
     to the redetermination of any Tax Item.

     (b) Notice. If after the Distribution Date any Ford Affiliate receives
written notice of, or relating to, a Tax Proceeding from a Tax Authority that
asserts, proposes or recommends a deficiency, claim or adjustment that, if
sustained, would result in any Restructuring Taxes for which Visteon could be
responsible under this Agreement, Ford shall notify Visteon in writing of such
deficiency, claim or adjustment within 30 days of its receipt. If any Visteon
Affiliate receives written notice of or relating to a Tax Proceeding from a Tax
Authority with respect to a Return described in Section 2(b), Visteon shall
provide a copy of such notice to Ford within 30 days of receiving such notice of
such Tax Proceeding, provided that in no case shall such notice be provided
later than 30 days before a response is required to be provided to the relevant
Tax Authority.

     (c) Participation Rights. If a Tax Authority asserts, proposes or
recommends a deficiency, claim or adjustment that, if sustained, would result in
Restructuring Taxes for which Visteon could be responsible under this Agreement:

          (i) in the case of any material correspondence or filing submitted to
     the Tax Authority or any judicial authority that relates to the merits of
     such deficiency, claim or adjustment, Ford shall (A) reasonably in advance
     of such submission, but subject to applicable time constraints imposed by
     such Tax Authority or judicial authority, provide Visteon with a draft copy
     of the portion of such correspondence or filing that relates solely to such
     deficiency, claim or adjustment, (B) consider, subject to applicable time
     constraints imposed by such Tax Authority or judicial authority, Visteon's
     comments on such draft copy of such correspondence or filing, and (C)
     provide Visteon with a final copy of the portion of such correspondence or
     filing that relates solely to such deficiency, claim or adjustment.

          (ii) If Visteon acknowledges in writing to Ford that, as between
     Visteon and Ford, each Visteon Affiliate shall be jointly and severally
     liable for an amount equal to 100% of any such Restructuring Taxes that are
     determined pursuant to a Final Determination, then (A) Ford shall take all
     actions requested by Visteon to contest such deficiency, claim or
     adjustment, including administrative and judicial proceedings; (B) Visteon
     shall have the right to fully participate with respect to such deficiency,
     claim or adjustment and related proceedings and Ford shall accept all
     reasonable suggestions by Visteon in connection with the management and
     substance of such proceedings, and (C) in no event shall Ford settle or
     compromise any such deficiency, claim or adjustment

                                       20

<PAGE>   25

     without the written consent of Visteon, which consent shall not be
     unreasonably withheld.

     9. PAYMENTS.

     (a) Procedure for Making Payments. All payments required to be made under
this Agreement shall be made in immediately available funds. Except as otherwise
provided in this Agreement, all payments required to be made pursuant to this
Agreement will be due 30 days after the receipt of notice of such payment being
owed. Payments shall be deemed made when received.

     (b) Setoff. No party shall set off any payment due to such party or one of
its affiliates against any payment required to be made under this Agreement by
such party or one of its affiliates to the other party or one of its affiliates.

     (c) Interest on Late Payments. Any payment required to be made pursuant to
this Agreement that is not made on or before the due date for such payment shall
bear interest from the date after the due date to and including the date of
payment at a rate determined under Code Section 6621(a)(2). Such interest shall
be paid at the same time as the payment to which it relates. Any interest
payable pursuant to the preceding sentence that is not paid when due shall bear
interest computed in the manner described in the preceding sentence.

     (d) Character of Payments. For Tax purposes, the parties agree to treat any
payment (other than payments of interest pursuant to Section 9(c) of this
Agreement and After-Tax Amounts) pursuant to this Agreement as a capital
contribution by Ford to Visteon or a distribution by Visteon to Ford made in the
last tax period beginning before the Distribution and, accordingly, as not
includible in the taxable income of the recipient and not deductible by the
payor. If pursuant to a Final Determination it is determined that the receipt or
accrual of any payment made under this Agreement (other than payments of
interest pursuant to Section 9(c)) is subject to any Tax, the party making such
payment shall be liable for the After-Tax Amount with respect to such payment. A
party may choose not to specify an After-Tax Amount in a demand for payment
pursuant to this Agreement without thereby being deemed to have waived its right
subsequently to demand an After-Tax Amount with respect to such payment.

     10. DISPUTE RESOLUTION.

     (a) Scope of Section. This Section 10 shall govern all disputes under this
Agreement.

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<PAGE>   26

     (b) Initial Notice of Disagreement.

          (i) The party (the "REMITTING PARTY") receiving a schedule or other
     notice regarding a payment required pursuant to this Agreement shall have
     30 days from the date of the delivery of such schedule or other notice to
     register its disagreement with all or a portion of such payment (each such
     disagreement a "DISPUTED ITEM").

          (ii) The Remitting Party shall register its disagreement by delivering
     to the other party (the "RECIPIENT") within such 30 day period a written
     notice (an "INITIAL NOTICE OF DISAGREEMENT") that (A) specifically
     enumerates each Disputed Item, (B) describes the grounds for the Remitting
     Party's disagreement with each Disputed Item, and (C) states the amount in
     dispute (or a good faith estimate thereof) with respect to each Disputed
     Item.

          (iii) If, within the 30 day period described in Section 10(b)(i), the
     Remitting Party does not deliver an Initial Notice of Disagreement that
     satisfies the requirements of Section 10(b)(ii) with respect to all or a
     portion of a payment described in Section 10(b)(i), then the Remitting
     Party will be deemed to have (A) accepted and acknowledged its liability
     for such payment or portion thereof and (B) waived its right to a
     Determination by an Independent Third Party pursuant to Section 10(f) with
     respect to such payment or portion thereof.

     (c) Negotiation. During the 60 day period immediately following delivery of
an Initial Notice of Disagreement that satisfies the requirements of Section
10(b)(ii), the Remitting Party and the Recipient shall in good faith attempt to
resolve their disagreements over each Disputed Item enumerated in the Initial
Notice of Disagreement.

     (d) Final Notice of Disagreement.

          (i) The Remitting Party shall have 70 days from the delivery of an
     Initial Notice of Disagreement to register its continued disagreement with
     any Disputed Item and to elect to seek a by an Independent Third Party with
     respect to such Disputed Item pursuant to Section 10(f). The Remitting
     Party shall do so by delivering to the Recipient within such 70 day period
     a written notice (a "FINAL NOTICE OF DISAGREEMENT") that (A) specifically
     enumerates each Disputed Item with respect to which it elects to seek a
     Determination by an Independent Third Party, (B) describes the grounds for
     the Remitting Party's continued disagreement with each such

                                       22

<PAGE>   27

     Disputed Item, and (C) states the amount in dispute (or a good faith
     estimate thereof) with respect to each such Disputed Item.

          (ii) The failure of the Remitting Party within the 70 day period
     described in Section 10(d)(i) to deliver a Final Notice of Disagreement,
     that satisfies the requirements of Section 10(d)(i), with respect to all or
     a portion of the payment described in Section 10(b) shall be deemed to
     constitute (A) an acceptance and acknowledgment by such party of its
     liability for such payment or portion thereof and (B) a waiver by such
     party of its right to a Determination by an Independent Third Party
     pursuant to Section 10(f) with respect to such Disputed Item.

          (iii) Any dispute, controversy, or claim relating to or arising out of
     a Disputed Item contained in a Notice of Final Disagreement shall be
     finally settled by arbitration before an Independent Third Party pursuant
     to the provisions of this Section 10.

     (e) Selection of Independent Third Party. If the Remitting Party delivers a
Final Notice of Disagreement that satisfies the requirements of Section 10(d)(i)
to the Recipient, the parties shall, within 10 days after such delivery, jointly
select an Independent Third Party to make a Determination with respect to each
Disputed Item enumerated in the Final Notice of Disagreement. If the parties
cannot jointly agree on an Independent Third Party to make such Determination
within such 10 day period, either party may apply to the American Arbitration
Association ("AAA") for the sole purpose of having the AAA select an Independent
Third Party from a list of no fewer than two (2) and no more than 5 potential
Independent Third Parties which list is acceptable to Davis Polk and Wardwell in
its discretion (on behalf of Ford) and Dickinson Wright LLC in its discretion
(on behalf of Visteon). If the two law firms fail to approve a list within 15
days of the application of either party to the AAA, the Independent Third Party
shall be selected by the AAA.

     (f) Determination by Independent Third Party. The Independent Third Party
shall determine the appropriate outcome based upon this Agreement (the
"DETERMINATION") with respect to each Disputed Item. The Independent Third Party
shall have 90 days from the date that he or she is selected in which to make
such Determinations, unless the Remitting Party and the Recipient mutually agree
upon an extension of such period or the Independent Third Party, in its
discretion, determines that an extension of such period is warranted by
exceptional circumstances. The Remitting Party and the Recipient shall provide
the Independent Third Party with such information or documentation as the
Independent Third Party, in its discretion, deems to be necessary for it to make
the Determination requested of it. Any Determination by the Independent Third
Party

                                       23

<PAGE>   28

(as well as any allocation of costs and expenses pursuant to Section 10(g) shall
be in writing, shall be delivered to the Remitting Party and the Recipient, and
shall be final and binding upon them and enforced as an arbitration award under
the United States Arbitration Act, 9 U.S.C. ss. ss. 1-16. The parties explicitly
waive any right to seek any judicial review of the substance of the
Determination of the Independent Third Party. In making a Determination, the
Independent Third Party shall be entitled to use, at the sole cost and expense
of the Remitting Party and the Recipient, whatever resources it deems necessary,
including accounting and technical services provided by firms chosen by it in
its discretion. Any proceedings relating to the determination at which the
presence of any personnel or representatives of both parties is required shall
take place in Dearborn, Michigan.

     (g) Costs and Expenses Associated with Independent Third Party. The
Remitting Party and the Recipient shall be jointly and severally liable to the
Independent Third Party for all costs and expenses associated with retaining the
Independent Third Party. As between themselves, except as otherwise provided in
this Section 10(g), the Remitting Party and the Recipient shall share equally
the costs and expenses associated with retaining an Independent Third Party.
Where a determination with respect to a Disputed Item is not less than 80% of
the amount claimed to be due from the Remitting Party, the Independent Third
Party may, in its discretion, allocate to the Remitting Party more than 50% of
the costs and expenses associated with such determination. Where a determination
with respect to a Disputed Item is less than 50% of the amount claimed to be due
from the Remitting Party, the Independent Third Party may, in its discretion,
allocate to the Recipient more than 50% of the costs and expenses associated
with such determination.

     11. NOTICES.

     Any notice, demand, claim, or other communication under this Agreement
shall be in writing and shall be deemed to have been given upon the delivery or
mailing thereof, as the case may be, if delivered personally or sent by
certified mail, return receipt requested, postage prepaid, to the parties at the
following addresses (or at such other address as a party may specify by notice
to the other):

     If to Ford, to:

     Ford Motor Company
     Henry Ford II World Center
     The American Road
     Dearborn MI 48121
     Facsimile: (313) 248-7450
     Attention: Dennis Ross
     Vice President - Chief Tax Officer

                                       24

<PAGE>   29

     If to Visteon, to:

     Visteon Corporation
     5500 Auto Club Drive
     Dearborn, MI 48121
     Facsimile:
     Attention: General Counsel

     12. COSTS AND EXPENSES.

     (a) Additional Services. Ford may provide tax services to Visteon for
compensation approximately the same as that payable between unrelated parties
dealing at arm's length.

     (b) Other. Except as expressly set forth in this Agreement, each party
shall bear its own costs and expenses incurred pursuant to this Agreement. For
purposes of this Agreement, "EXPENSES" shall include, without limitation,
reasonable attorney's fees, accountant's fees and other related professional
fees and disbursements.

     13. TERMINATION AND SURVIVAL.

     All rights and obligations arising hereunder with respect to a Pre-
Distribution Tax Period shall survive until they are fully effectuated or
performed provided, that notwithstanding anything in this Agreement to the
contrary, this Agreement shall remain in effect and its provisions shall survive
for the full period of all applicable statutes of limitation (giving effect to
any extension, waiver or mitigation thereof).

     14. SECTION HEADINGS.

     The headings contained in this Agreement are inserted for convenience only
and shall not constitute a part hereof or in any way affect the meaning or
interpretation of this Agreement.

     15. ENTIRE AGREEMENT; AMENDMENTS AND WAIVERS; SEVERABILITY.

     (a) Entire Agreement; Amendments. This Agreement, including the exhibits,
appendices and other attachments hereto contains the entire understanding of the
parties hereto with respect to the subject matter contained herein. No
alteration, amendment, modification, or waiver of any of the terms of this
Agreement shall be valid unless made by an instrument signed by an

                                       25

<PAGE>   30

authorized officer of each of Ford and Visteon, or in the case of a waiver, by
the party against whom the waiver is to be effective.

     (b) Waivers. No failure or delay by any party in exercising any right,
power or privilege hereunder shall operate as a waiver hereof nor shall any
single or partial exercise thereof preclude any other or further exercise
thereof or the exercise of any right, power or privilege.

     (c) Severability. If any provision of this Agreement or the application of
any such provision to any party or circumstances shall be determined by any
court of competent jurisdiction to be invalid, illegal or unenforceable to any
extent, this Agreement or such provision or the application of such provision to
such party or shall remain in full force and effect to the fullest extent
permitted by law and shall not be affected thereby, unless such a construction
would be unreasonable.

     16. GOVERNING LAW AND INTERPRETATION.

     This Agreement has been made in and shall be construed and enforced in
accordance with the laws of the state of Michigan without giving effect to laws
and principles relating to conflicts of law.

     17. COUNTERPARTS.

     This Agreement may be executed in any number of counterparts, each of which
shall be deemed an original, but all of which together shall constitute one and
the same Agreement.

     18. ASSIGNMENTS; THIRD PARTY BENEFICIARIES.

     Subject to Section 6(b), this Agreement shall be binding upon and shall
inure only to the benefit of the parties hereto and their respective successors
and assigns, by merger, acquisition of assets or otherwise (including but not
limited to any successor of a party hereto succeeding to the Tax attributes of
such party under applicable law). This Agreement is not intended to benefit any
person other than the parties hereto and such successors and assigns, and no
such other person shall be a third party beneficiary hereof.

     19. FURTHER ASSURANCES.

     Ford and Visteon shall execute, acknowledge and deliver, or cause to be
executed, acknowledged and delivered, such instruments and take such other
action as may be necessary or advisable to carry out their obligations under
this Agreement and under any exhibit, document or other instrument delivered
pursuant hereto.

                                       26

<PAGE>   31

     20. AUTHORIZATION, ETC.

     Each of the parties hereto hereby represents and warrants that it has the
power and authority to execute, deliver and perform this Agreement, that this
Agreement has been duly authorized by all necessary corporate action on the part
of such party that this Agreement constitutes a legal, valid and binding
obligation of each such party, and that the execution, delivery and performance
of this Agreement by such party does not contravene or conflict with any
provision of law or of its charter or bylaws or any agreement, instrument or
order binding on such party.

                                       27

<PAGE>   32

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

                    Ford on its own behalf and on behalf of each Ford Affiliate.

                    By:      /s/ Malcolm S. Macdonald
                             -----------------------------------------------
                             Title: Vice President and Treasurer

                     Visteon on its own behalf and on behalf of each
                     Visteon Affiliate.

                     By:      /s/ Daniel R. Coulson
                              ----------------------------------------------
                              Title: Executive Vice President and Chief
                                     Financial Officer<PAGE>   1
                                                                  EXHIBIT 10.9

                               VISTEON CORPORATION

                          2000 LONG-TERM INCENTIVE PLAN

                            (Effective as of        , 2000,
                        subject to shareholder approval)

SECTION 1.  PURPOSE AND DEFINITIONS

            (a) Purpose. This Plan, known as the "Visteon Corporation 2000
Long-Term Incentive Plan", is intended to provide an incentive to certain
salaried employees of Visteon Corporation and its subsidiaries, in order to
encourage them to remain in the employ of the Company and to increase their
interest in the Company's success. It is intended that this purpose be effected
through awards or grants of stock options and various other rights with respect
to shares of the Company's common stock, as provided herein, to eligible
employees.

            (b) Definitions. The following terms shall have the following
respective meanings unless the context requires otherwise:

                (1) The term "Affiliate" or "Affiliates" shall have the meaning
set forth in Rule 12b-2 promulgated under Section 12 of the Exchange Act.

                (2) The term "Beneficial Owner" shall mean beneficial owner as
set forth in Rule 13d-3 under the Exchange Act.

                (3) The term "Board" shall mean the Board of Directors of
Visteon Corporation.

                (4) The term "Change in Control" shall mean the occurrence of
one of the events set forth in any one of the following paragraphs:

                    (A) any Person is or becomes the Beneficial Owner, directly
                or indirectly, of securities of the Company (not including in
                the securities beneficially owned by such Person any securities
                acquired directly from the Company or its affiliates)
                representing 40% or more of the combined voting power of the
                Company's then outstanding securities, excluding any Person who
                becomes such a Beneficial Owner in connection with a transaction
                described in clause (i) of paragraph (C) below;

                    (B) within any twelve (12) month period, the following
                individuals cease for any reason to constitute a majority of the
                number of directors then serving: individuals who, on the
                effective date of this Plan, constitute the Board and any new
                director (other than a director whose initial assumption of
                office is in connection with an actual or threatened election
                contest, including but not limited to a consent solicitation,
                relating to the election of directors of the Company) whose
                appointment or election by the Board or nomination for election
                by the Company's shareholders was approved or recommended by a
                vote of at least two-thirds (2/3) of the directors then still in
                office who either were directors on the date hereof or whose
                appointment, election or nomination for election was previously
                so approved or recommended;

                    (C) there is consummated a merger or consolidation of the
                Company or any direct or indirect subsidiary of the Company with
                any other corporation, other than (i) a merger or consolidation
                which results in the directors of the Company immediately prior
                to such merger or consolidation continuing to constitute at
                least a majority of the board of directors of the Company, the
                surviving entity or any parent thereof or (ii) a merger or
                consolidation effected to implement a recapitalization of the
                Company (or similar transaction) in which no Person is or
                becomes the Beneficial Owner, directly or indirectly, of
                securities of the Company (not including in the securities
                Beneficially Owned by such Person any securities acquired
                directly from the Company or its Affiliates) representing 40% or
                more of the combined voting power of the Company's then
                outstanding securities;

<PAGE>   2

                    (D) the shareholders of the Company approve a plan of
                complete liquidation or dissolution of the Company or there is
                consummated an agreement for the sale or disposition by the
                Company of more than 50% of the Company's assets, other than a
                sale or disposition by the Company of more than 50% of the
                Company's assets to an entity, at least 50% of the combined
                voting power of the voting securities of which are owned by
                shareholders of the Company in substantially the same
                proportions as their ownership of the Company immediately prior
                to such sale; or

                    (E) any other event that the Board, in its sole discretion,
                determines to be a Change in Control for purposes of this
                Agreement.

Notwithstanding the foregoing, a "Change in Control" shall not be deemed to have
occurred by virtue of the consummation of any transaction or series of
integrated transactions immediately following which the record holders of the
common stock of the Company immediately prior to such transaction or series of
transactions continue to have substantially the same proportionate ownership in
an entity which owns all or substantially all of the assets of the Company
immediately following such transaction or series of transactions.

                (5) The term "Code" shall mean the Internal Revenue Code of
1986, or any successor thereto, as the same may be amended and in effect from
time to time.

                (6) The term "Committee" shall mean the committee appointed
pursuant to Section 2 to administer the Plan.

                (7) The term "Company" shall mean Visteon Corporation and its
Subsidiaries.

                (8) The term "Covered Executive" shall mean the Chief Executive
Officer and the other four highest compensated officers of the Company at
year-end whose compensation is required to be reported in the Summary
Compensation Table of the Company's Proxy Statement.

                (9) The term "Employee" shall mean an employee of the Company.
The term "Employee shall also be deemed to include any person who is an employee
of any joint venture corporation or partnership, or comparable entity, in which
the Company has a substantial equity interest, provided such person was an
employee of the Company immediately prior to becoming employed by such entity.

                (10) The term "Exchange Act" shall mean the Securities Exchange
Act of 1934, as the same may be amended and in effect from time to time.

                (11) The term "Fair Market Value" shall mean the average of the
highest and lowest sale prices at which a share of Stock shall have been sold
regular way on the New York Stock Exchange on the date of grant of any Option or
Stock Appreciation Right or other relevant valuation date. In the event that any
Option or Stock Appreciation Right shall be granted, or other relevant valuation
date shall occur, on a date on which there were no such sale of Stock on the New
York Stock Exchange, the Fair Market Value of a share of Stock shall be deemed
to be the average of the highest and lowest sale prices on the next preceding
day on which there were such sales.

                (12) The term "Final Award" shall mean the number of shares of
Stock to be awarded finally to the Participant who holds a Performance Stock
Right, as determined by the Committee taking into account the extent to which
the Participant has achieved the Performance Goals.

                (13) The term "Option" or "Options" shall mean the option to
purchase Stock in accordance with Section 5 and such other terms and conditions
as may be prescribed by the Committee. An Option may be either an "incentive
stock option", as such term is defined in the Code, or shall otherwise be
designated as an option entitled to favorable treatment under the Code ("ISO")
or a "nonqualified stock option" ("NQO"). ISOs and NQOs are individually called
an "Option" and collectively called "Options".

                                      -2-
<PAGE>   3

                (14) The term "Other Stock Based Awards" shall mean awards of
Stock or other rights made in accordance with Section 6.

                (15) The term "Participant" shall mean an Employee of the
Company who has been designated for participation in the Plan.

                (16) The term "Performance Goals" shall mean one or more
objective business criteria selected by the Committee in accordance with
subsection (c) of Section 4.

                (17) The term "Performance Formula" shall mean a formula to be
applied in relation to the Performance Goals in determining the number of shares
of Stock earned under a Performance Stock Right as a percentage, not to exceed
150%, of the Target Award.

                (18) The term "Performance Period" shall mean the period of time
for which performance with respect to one or more Performance Goals with respect
to any Performance Stock Right is to be measured, with such period commencing
not earlier than 90 days prior to the date of grant of such Right,

                (19) The term "Performance Stock Rights" or "Right" shall mean
the right to receive, without payment to the Company, up to the number of shares
of Stock described in the Participant's award agreement, upon the attainment of
one or more specified Performance Goals, subject to the terms and provisions of
the agreement and the Plan.

                (20) The term "Person" shall have the meaning given in Section
3(a)(9) of the Exchange Act, as modified and used in Sections 13(d) and 14(d)
thereof, except that such term shall not include (i) the Company or any of its
subsidiaries, (ii) a trustee or other fiduciary holding securities under an
employee benefit plan of the Company or any of its Affiliates, (iii) an
underwriter temporarily holding securities pursuant to an offering of such
securities, or (iv) a corporation owned, directly or indirectly, by the
stockholders of the Company in substantially the same proportions as their
ownership of stock of the Company.

                (21) The term "Plan" shall mean the "Visteon Corporation 2000
Long-Term Incentive Plan as the same may be amended and in effect from time to
time.

                (22) The term "Plan Awards" shall mean awards or grants of stock
options and various other rights with respect to shares of the Company's common
stock.

                (23) The term "Stock Appreciation Right" shall mean the right to
receive, without payment to the Company, an amount of cash or Stock as
determined in accordance with Section 5 based above the amount by which the Fair
Market Value of a share of Stock on the relevant valuation date exceeds the
grant price.

                (24) The term "Subsidiary" shall mean (i) any corporation a
majority of the voting stock of which is owned directly or indirectly by the
Company or (ii) any limited liability company a majority of the membership
interest of which is owned, directly or indirectly, by the Company.

                (25) The term "Stock" means shares of the Company's common
stock, par value $1.00 per share.

                (26) The term "Target Award" shall mean the number of shares of
Stock, subject to adjustment pursuant to Section 11, to be earned by a
Participant under a Performance Stock Right if all of the Performance Goals are
achieved.

SECTION 2.  ADMINISTRATION

            (a) Committee. Initially, the Plan shall be administered by a
committee appointed by the Board. After the registration of the Company's Common
Stock pursuant to Section 12(b) of the Exchange Act, the Plan shall be
administered by the Compensation Committee of the Board consisting of not less
than two (2) members of the Board who meet the "outside" director requirements
of Section 162(m) of the Code and the "non-employee director" requirements of
Rule 16b-3(b)(3) of the Exchange Act, or by any other committee appointed by the
Board, provided the members of such committee meet such requirements. The
Committee shall administer the Plan and perform such other functions as are
assigned to it under the Plan. The Committee is authorized, subject to the
provisions of the Plan, from time to time, to establish such rules and
regulations as it may deem appropriate for the proper administration of the
Plan, and to make such determinations under, and such interpretations of, and to
take such steps in

                                      -3-
<PAGE>   4

connection with, the Plan and the Plan Awards as it may deem necessary or
advisable, in each case in its sole discretion. The Committee's decisions and
determinations under the Plan need not be uniform and may be made selectively
among Participants, whether or not they are similarly situated. Any authority
granted to the Committee may also be exercised by the Board, except to the
extent that the grant or exercise of such authority would cause any qualified
performance based award to cease to qualify for exemption under Section 162(m)
of the Code. To the extent that any permitted action taken by the Board
conflicts with action taken by the Committee, the Board action shall control.

            (b) Delegation of Authority. The Committee may delegate any or all
of its powers and duties under the Plan, including, but not limited to, its
authority to make awards under the Plan or to grant waivers pursuant to Section
8, to one or more other committees (including a committee consisting of two or
more corporate officers) as it shall appoint, pursuant to such conditions or
limitations as the Committee may establish; provided, however, that the
Committee shall not delegate its authority to (i) act on matters affecting any
Participant who is subject to the reporting requirements of Section 16(a) of the
Exchange Act, or the liability provisions of Section 16(b) of the Exchange Act
(any such Participant being called a "Section 16 Person") or (ii) amend or
modify the Plan pursuant to the provisions of Section 14(b). To the extent of
any such delegation, the term "Committee" when used herein shall mean and
include any such delegate.

            (c) Eligibility of Committee Members. No person while a member of
the Committee or any other committee of the Board administering the Plan shall
be eligible to hold or receive a Plan Award.

SECTION 3.  STOCK AVAILABLE FOR PLAN AWARDS

            (a) Stock Subject to Plan. The Stock to be subject to or related to
Plan Awards may be either authorized and unissued (subject to a maximum of
1,000,000 shares) or held in the treasury of the Company. The maximum number of
shares of Stock with respect to which Plan Awards may be granted under the Plan,
subject to adjustment in accordance with the provisions of Section 11, shall be
13,000,000. Notwithstanding the foregoing, (i) the aggregate number of shares
that may be issued upon exercise of "incentive stock options" (as defined in
subsection (a)(1) of Section 5) shall not exceed 10,280,000, subject to
adjustment in accordance with the provisions of Section 11; (ii) the maximum
number of shares subject to Options, with or without any related Stock
Appreciation Rights, or Stock Appreciation Rights (not related to Options) that
may be granted pursuant to Section 5 to any Covered Executive during any
calendar year during any part of which the Plan is in effect shall be 500,000,
subject to adjustment in accordance with the provision of Section 11; and (iii)
the maximum number of shares of Stock that may be granted as Final Awards
pursuant to Section 4 to any Covered Executive during any calendar year during
any part of which the Plan is in effect shall be 500,000.

            (b) Computation of Stock Available for Plan Awards. For the purpose
of computing the total number of shares of Stock remaining available for Plan
Awards at any time while the Plan is in effect, there shall be debited against
the total number of shares determined to be available pursuant to paragraphs (a)
and (c) of this Section 3 (i) the maximum number of shares of Stock subject to
issuance upon exercise of Options or Stock Appreciation Rights granted, (ii) the
maximum number of shares of Stock issuable under Performance Stock Rights
granted, and (iii) the number of shares of Stock related to Other Stock-Based
Awards granted, as determined by the Committee in each case as of the dates on
which such Plan Awards were granted.

            (c) Terminated, Expired or Forfeited Plan Awards. The shares
involved in the unexercised or undistributed portion of any terminated, expired
or forfeited Plan Award shall be made available for further Plan Awards. Any
shares of Stock made available for Plan Awards pursuant to this subsection (c)
shall be in addition to the shares available pursuant to subsection (a) of this
Section 3. Notwithstanding the foregoing, in the event any Option or Stock
Appreciation Right granted to a Covered Executive is canceled, the number of
shares of Stock subject to such canceled Option or Stock Appreciation Right
shall continue to count against the individual limit specified in subsection
(a), in accordance with the requirements of Code Section 162(m).

                                      -4-
<PAGE>   5

SECTION 4.  PERFORMANCE STOCK RIGHTS AND FINAL AWARDS

            (a) Grant of Performance Stock Rights. The Committee, at any time
and from time to time while the Plan is in effect, may grant, or authorize the
granting of, Rights to such officers and other key salaried employees of the
Company, whether or not members of the Board, as it may select and for such
numbers of shares as it shall designate, subject to the provisions of this
Section 4 and Section 3.

            (b) Terms and Provisions of Performance Stock Rights. Prior to the
grant of any Right, the Committee shall determine the terms and provisions of
each Right, including, without limitation (i) the Target Award; (ii) one or more
Performance Goals to be used to measure performance under such Right, and the
Performance Formula to be applied against the Performance Goals in determining
the number of shares of Stock earned under such Right as a percentage of the
Target Award; (iii) the Performance Period; (iv) the period of time, if any,
during which the disposition of shares of Stock issuable under such Right shall
be restricted as provided in subsection (a) of Section 9, provided, however,
that the Committee may establish restrictions applicable to any Right at the
time of or at any time prior to the granting of the related Final Award rather
than at the time of granting such Right; and (v) the effect of the Participant's
termination of employment or death. Within 90 days of commencement of a
Performance Period, the Committee may establish a minimum threshold objective
for any Performance Goal for such Performance Period, which if not met, would
result in no Final Award being made to any Participant with respect to such
Performance Goal for such Performance Period. During and after the Performance
Period, but prior to the Committee's final determination of the Participant's
Final Award as provided in subsection (e), the Committee may adjust the
Performance Goals, Performance Formula and Target Award and otherwise modify the
terms and provisions of a Right granted to a Participant who is not a Covered
Executive, subject to the terms and conditions of the Plan. Each Right shall be
evidenced by an award agreement in such form as the Committee may determine.

            (c) Performance Goals. The Performance Goals, with respect to any
Right granted to a Participant who is a Covered Executive, shall be based upon
one or more of the following objective business criteria established by the
Committee with respect to the Company and/or any subsidiary, division, business
unit or component thereof: asset charge, asset turnover, return on sales,
capacity utilization, capital employed in the business, capital spending, cash
flow, cost structure improvements, complexity reductions, customer loyalty,
diversity, earnings growth, earnings per share, economic value added,
environmental health and safety, facilities and tooling spending, hours per
component, increase in customer base, inventory turnover, market price
appreciation, market share, net cash balance, net income, net income margin, net
operating cash flow, operating profit margin, order to delivery time, plant
capacity, process time, profits before tax, quality/customer satisfaction,
return on assets, return on capital, return on equity, return on net operating
assets, return on sales, revenue growth, sales margin, sales volume, total
shareholder return, production per employee, warranty performance to budget,
variable margin and working capital. With respect to any Right granted to a
Participant who is not a Covered Executive, performance goals may be based on
one or more of the business criteria described above or any other criteria based
on individual, business unit, group or Company performance selected by the
Committee. The Performance Goals may be expressed in absolute terms or relate to
the performance of other companies or to an index.

            (d) Dividend Equivalents on Rights.

                (1) If the Committee shall determine, each Participant to whom a
Right is granted shall be entitled to receive payment of the same amount of cash
that such Participant would have received as cash dividends if, on each record
date during the Performance Period relating to such Right, such Participant had
been the holder of record of a number of shares of Stock equal to 100% of the
related Target Award (as adjusted pursuant to Section 11). Any such payment may
be made at the same time as a dividend is paid or may be deferred until the date
that a Final Award is determined, as determined by the Committee in its sole
discretion. Such cash payments are hereinafter called "dividend equivalents".

                (2) Notwithstanding the provisions of subsection (d)(1), the
Committee may determine that, in lieu of receiving all or any portion of any
such dividend equivalent in cash, a Participant shall receive an award of full
shares of Stock having a Fair Market Value approximately equal to the portion of
such dividend equivalent that was not paid in cash. Certificates for shares of
Stock so awarded may be issued as of the payment date for the related

                                      -5-
<PAGE>   6

cash dividend or may be deferred until the date that the Final Award is
determined, and the shares of Stock covered thereby may be subject to the terms
and conditions of the Right to which it relates (including but not limited to
the attainment of the Performance Goals) and the terms and conditions of the
Plan (including but not limited to Sections 4, 8, 9 and 11), all as determined
by the Committee in its sole discretion.

            (e) Final Awards.

                (1) As soon as practicable following the completion of the
Performance Period relating to any Right, but not later than 12 months following
such completion, the Committee shall determine the extent to which the
Participant achieved the Performance Goals and the number of shares of Stock to
be awarded as a Final Award to the Participant who holds such Right. Each Final
Award shall represent only full shares of Stock, and any fractional share that
would otherwise result from such Final Award calculation shall be disregarded.
In making such determination, the Committee shall apply the applicable
Performance Formula for the Participant for the Performance Period against the
accomplishment of the related Performance Goals. The Committee may, in its sole
discretion, reduce the amount of any Final Award that otherwise would be awarded
to any Participant for any Performance Period. In addition, the Committee may,
in its sole discretion, increase the amount of any Final Award that otherwise
would be awarded to any Participant who is not a Covered Executive. Any such
determination shall take into account (i) the extent to which the Performance
Goals provided in such Right was, in the Committee's sole opinion, achieved,
(ii) the individual performance of such Participant during the related
Performance Period and (iii) such other factors as the Committee may deem
relevant, including, without limitation, any change in circumstances or
unforeseen events, relating to the Company, the economy or otherwise, since the
date of grant of such Right. The Committee shall notify such Participant of such
Participant's Final Award as soon as practicable following such determination.

                (2) Following the determination of each Final Award, the Company
shall issue or cause to be issued certificates for the number of shares of Stock
representing such Final Award, registered in the name of the Participant who
received such Final Award. Such Participant shall thereupon become the holder of
record of the number of shares of Stock evidenced by such certificates, entitled
to dividends, voting rights and other rights of a holder thereof, subject to the
terms and provisions of the Plan, including, without limitation, the provisions
of this subsection (e) and Sections 8, 9 and 11. The Committee may require that
such certificates bear such restrictive legend as the Committee may specify and
be held by the Company in escrow or otherwise pursuant to any form of agreement
or instrument that the Committee may specify. If the Committee has determined
that deferred dividend equivalents shall be payable to a Participant with
respect to any Right pursuant to subsection (c) of this Section 4, then
concurrently with the issuance of such certificates, the Company shall deliver
to such Participant a cash payment or additional shares of Stock in settlement
of such dividend equivalents.

                (3) Notwithstanding the provisions of this subsection (e) or any
other provision of the Plan, the Committee may specify that a Participant's
Final Award shall not be represented by certificates for shares of Stock but
shall be represented by rights approximately equivalent (as determined by the
Committee) to the rights that such Participant would have received if
certificates for shares of Stock had been issued in the name of such Participant
in accordance with subsection (e) (such rights being called "Stock
Equivalents"). Subject to the provisions of Section 11 and the other terms and
provisions of the Plan, if the Committee shall so determine, each Participant
who holds Stock Equivalents shall be entitled to receive the same amount of cash
that such Participant would have received as dividends if certificates for
shares of Stock had been issued in the name of such Participant pursuant to
subsection (e) covering the number of shares equal to the number of shares to
which such Stock Equivalents relate. Notwithstanding any other provision of the
Plan to the contrary, the Stock Equivalents representing any Final Award may, at
the option of the Committee, be converted into an equivalent number of shares of
Stock or, upon the expiration of any restriction period imposed on such Stock
Equivalents, into cash, under such circumstances and in such manner as the
Committee may determine.

                                      -6-
<PAGE>   7

SECTION 5.  OPTIONS AND STOCK APPRECIATION RIGHTS

            (a) Grant of Options.

                (1) The Committee, at any time and from time to time while the
Plan is in effect, may authorize the granting of Options to such officers and
other key salaried employees of the Company, whether or not members of the
Board, as it may select, and for such numbers of shares as it shall designate,
subject to the provisions of this Section 5 and Section 3. Each Option granted
pursuant to the Plan shall be designated at the time of grant as either an ISO
or an NQO.

                (2) The date on which an Option shall be granted shall be the
date of authorization of such grant or such later date as may be determined at
the time such grant is authorized. Any individual may hold more than one Option.

            (b) Price. In the case of each Option granted under the Plan the
option price shall be the Fair Market Value of Stock on the date of grant of
such Option; provided, however, that the Committee may in its discretion fix an
option price in excess of the Fair Market Value of Stock on such date.

            (c) Grant of Stock Appreciation Rights.

                (1) The Committee, at any time and from time to time while the
Plan is in effect, may authorize the granting of Stock Appreciation Rights to
such officers and other key salaried employees of the Company, whether or not
members of the Board, as it may select, and for such numbers of shares as it
shall designate, subject to the provisions of this Section 5 and Section 3. Each
Stock Appreciation Right may relate to all or a portion of a specific Option
granted under the Plan and may be granted concurrently with the Option to which
it relates or at any time prior to the exercise, termination or expiration of
such Option (a "Tandem SAR"), or may be granted independently of any Option, as
determined by the Committee. If the Stock Appreciation Right is granted
independently of an Option, the grant price of such right shall be the Fair
Market Value of Stock on the date of grant; provided, however, that the
Committee may, in its discretion, fix a grant price in excess of the Fair Market
Value of Stock on such grant date.

                (2) Upon exercise of a Stock Appreciation Right, the Participant
shall be entitled to receive, without payment to the Company, either (a) that
number of shares of Stock determined by dividing (i) the total number of shares
of Stock subject to the Stock Appreciation Right being exercised by the
Participant, multiplied by the amount by which the Fair Market Value of a share
of Stock on the day the right is exercised exceeds the grant price (such amount
being hereinafter referred to as the "Spread"), by (ii) the Fair Market Value of
a share of Stock on the exercise date; or (b) cash in an amount determined by
multiplying (i) the total number of shares of Stock subject to the Stock
Appreciation Right being exercised by the Participant, by (ii) the amount of the
Spread; or (c) a combination of shares of Stock and cash, in amounts determined
as set forth in clauses (a) and (b) above, as determined by the Committee in its
sole discretion; provided, however, that, in the case of a Tandem SAR, the total
number of shares which may be received upon exercise of a Stock Appreciation
Right for Stock shall not exceed the total number of shares subject to the
related Option or portion thereof, and the total amount of cash which may be
received upon exercise of a Stock Appreciation Right for cash shall not exceed
the Fair Market Value on the date of exercise of the total number of shares
subject to the related Option or portion thereof.

            (d) Terms and Conditions.

                (1) Each Option and Stock Appreciation Right granted under the
Plan shall be exercisable on such date or dates, during such period, for such
number of shares and subject to such further conditions as shall be determined
pursuant to the provisions of the award agreement with respect to such Option
and Stock Appreciation Right; provided, however, that a Tandem SAR shall not be
exercisable prior to or later than the time the related Option could be
exercised; and provided, further, that in any event no Option or Stock
Appreciation Right shall be exercised beyond ten years from the date of grant.

                (2) The Committee may impose such conditions as it may deem
appropriate upon the exercise of an Option or a Stock Appreciation Right,
including, without limitation, a condition that the Stock Appreciation Right may
be exercised only in accordance with rules and regulations adopted by the
Committee from time to time.

                (3) With respect to Options issued with Tandem SARs, the right
of a Participant to exercise a Stock Appreciation Right shall be cancelled if
and to the extent the related Option is exercised, and the right of a
Participant to exercise an Option shall be cancelled if and to the extent that
shares covered by such Option are used to calculate shares or cash received upon
exercise of the Tandem SAR.

                (4) If any fractional share of Stock would otherwise be payable
to a Participant upon the exercise of an Option or Stock Appreciation Right, the
Participant shall be paid a cash amount equal to the same fraction of the Fair
Market Value of the Stock on the date of exercise.

            (e) Award Agreement. Each Option and Stock Appreciation Right shall
be evidenced by an award agreement in such form and containing such provisions
not inconsistent with the provisions of the Plan as the Committee from time to
time shall approve.

                                      -7-
<PAGE>   8

            (f) Payment for Option Shares.

                (1) Payment for shares of Stock purchased upon exercise of an
Option granted hereunder shall be made, either in full or, if the Committee
shall so determine and at the election of the Participant, in installments, in
such manner as provided in the applicable award agreement.

                (2) Unless the Committee shall provide otherwise in any award
agreement, any payment for shares of Stock purchased upon exercise of an Option
granted hereunder may be made in cash, by delivery of shares of Stock
beneficially owned by the Participant or by a combination of cash and Stock, at
the election of the Participant; provided, however, that any shares of Stock so
delivered shall have been beneficially owned by the Participant for a period of
not less than six months prior to the date of exercise. Any such shares of Stock
so delivered shall be valued at their Fair Market Value on the date of such
exercise. The Committee shall determine whether and if so the extent to which
actual delivery of share certificates to the Company shall be required.

SECTION 6.  STOCK AND OTHER STOCK-BASED AND COMBINATION AWARDS

            (a) Grants of Other Stock-Based Awards. The Committee, at any time
and from time to time while the Plan is in effect, may grant Other Stock Based
Awards to such officers and other salaried employees of the Company, whether or
not members of the Board, as it may select. Such Plan Awards pursuant to which
Stock is or may in the future be acquired, or Plan Awards valued or determined
in whole or part by reference to, or otherwise based on, Stock, may include, but
are not limited to awards of restricted Stock or Plan Awards denominated in the
form of "stock units", grants of so-called "phantom stock" and options
containing terms or provisions differing in whole or in part from Options
granted pursuant to Section 5. Other Stock-Based Awards may be granted either
alone, in addition to, in tandem with or as an alternative to any other kind of
Plan Award, grant or benefit granted under the Plan or under any other employee
plan of the Company, including a plan of any acquired entity.

            (b) Terms and Conditions. Subject to the provisions of the Plan, the
Committee shall have authority to determine the time or times at which Other
Stock-Based Awards shall be made, the number of shares of Stock or stock units
and the like to be granted or covered pursuant to such Plan Awards (subject to
the provisions of Section 3) and all other terms and conditions of such Plan
Awards, including, but not limited to, whether such Plan Awards shall be payable
or paid in cash, Stock or otherwise.

            (c) Consideration for Other Stock-Based Awards. In the discretion of
the Committee, any Other-Stock Based Award may be granted as a Stock bonus for
no consideration other than services rendered.

SECTION 7.  CASH AWARDS TO EMPLOYEES OF FOREIGN SUBSIDIARIES OR BRANCHES OR
            JOINT VENTURES

       In order to facilitate the granting of Plan Awards to Participants who
are foreign nationals or who are employed outside of the United States of
America, the Committee may provide for such special terms and conditions,
including without limitation substitutes for Plan Awards, as the Committee may
consider necessary or appropriate to accommodate differences in local law, tax
policy or custom. Such substitutes for Plan Awards may include a requirement
that the Participant receive cash, in such amount as the Committee may determine
in its sole discretion, in lieu of any Plan Award or share of Stock that would
otherwise have been granted to or delivered to such Participant under the Plan.
The Committee may approve any supplements to, or amendments, restatements or
alternative versions of the Plan as it may consider necessary or appropriate for
purposes of this Section 7 without thereby affecting the terms of the Plan as in
effect for any other purpose, and the Secretary or other appropriate officer of
the Company may certify any such documents as having been approved and adopted
pursuant to properly delegated authority; provided, however, that no such
supplements, amendments, restatements or alternative versions shall include any
provision that are inconsistent with the term of the Plan as then in effect.
Participants subject to the laws of a foreign jurisdiction may request copies
of, or the right to view, any materials that are required to be provided by the
Company pursuant to the laws of such jurisdiction.

                                      -8-
<PAGE>   9

SECTION 8.  PAYMENT OF PLAN AWARDS AND CONDITIONS THEREON

            (a) Effect of Competitive Activity. Anything contained in the Plan
to the contrary notwithstanding, if the employment of any Participant shall
terminate, for any reason other than death, while any Plan Award to such
Participant is outstanding hereunder, and such Participant has not yet received
the Stock covered by such Plan Award or otherwise received the full benefit of
such Plan Award, such Participant, if otherwise entitled thereto, shall receive
such Stock or benefit only if, during the entire period from the date of such
Participant's termination to the date of such receipt, such Participant shall
have (i) made himself or herself available, upon request, at reasonable times
and upon a reasonable basis, to consult with, supply information to and
otherwise cooperate with the Company or any subsidiary thereof with respect to
any matter that shall have been handled by him or her or under his or her
supervision while he or she was in the employ of the Company or of any
subsidiary thereof, and (ii) refrained from engaging in any activity that is
directly or indirectly in competition with any activity of the Company or any
subsidiary thereof.

            (b) Nonfulfillment of Competitive Activity Conditions: Waivers Under
the Plan. In the event of a Participant's nonfulfillment of any condition set
forth in subsection (a) of this Section 8 such Participant's rights under any
Plan Award shall be forfeited and cancelled forthwith; provided, however, that
the nonfulfillment of such condition may at any time (whether before, at the
time of or subsequent to termination of employment) be waived in the following
manner:

                (1) with respect to any such Participant who at any time shall
have been a Section 16 Person, such waiver may be granted by the Committee upon
its determination that in its sole judgment there shall not have been and will
not be any substantial adverse effect upon the Company or any subsidiary thereof
by reason of the nonfulfillment of such condition; and

                (2) with respect to any other such Participant, such waiver may
be granted by the Committee (or any delegate thereof) upon its determination
that in its sole judgment there shall not have been and will not be any such
substantial adverse effect.

            (c) Effect of Inimical Conduct. Anything contained in the Plan to
the contrary notwithstanding, all rights of a Participant under any Plan Award
shall cease on and as of the date on which it has been determined by the
Committee that such Participant at any time (whether before or subsequent to
termination of such Participant's employment) acted in a manner inimical to the
best interests of the Company or any subsidiary thereof.

            (d) Tax and Other Withholding. Prior to any distribution of cash,
Stock or Other Stock-Based Awards (including payments under Section 4(c)) to any
Participant, appropriate arrangements (consistent with the Plan and any rules
adopted hereunder) shall be made for the payment of any taxes and other amounts
required to be withheld by federal, state or local law.

            (e) Substitution. The Committee, in its sole discretion, may
substitute a Plan Award (except ISOs) for another Plan Award or Plan Awards of
the same or different type.

SECTION 9.  NON-TRANSFERABILITY OF PLAN AWARDS; RESTRICTIONS ON DISPOSITION AND
            EXERCISE OF PLAN AWARDS

            (a) Restrictions on Transfer of Rights or Final Awards. No Right or,
until the expiration of any restriction period imposed by the Committee, no
shares of Stock covered by any Final Award, shall be transferred, pledged,
assigned or otherwise disposed of by a Participant, except as permitted by the
Plan, without the consent of the Committee, otherwise than by will or the laws
of descent and distribution; provided, however, that the Committee may permit,
on such terms as it may deem appropriate, use of Stock included in any Final
Award as partial or full payment upon exercise of an Option under the Plan or a
stock option under any Stock Option Plan of the Company prior to the expiration
of any restriction period relating to such Final Award.

            (b) Restrictions on Transfer of Options or Stock Appreciation
Rights. Unless the Committee determines otherwise, no Option or Stock
Appreciation Right shall be transferable by a Participant otherwise than by will
or the laws of descent and distribution, and during the lifetime of a
Participant the Option or Stock Appreciation Right shall be exercisable only by
such Participant or such Participant's guardian or legal representative.

            (c) Restrictions on Transfer of Certain Other Stock-Based Awards.
Unless the Committee determines otherwise, no Other-Stock Based Award shall be
transferable by a Participant otherwise than by will or the laws of descent and
distribution, and during the lifetime of a Participant any such Other-Stock
Based Award shall be exercisable only by such Participant or such Participant's
guardian or legal representative.

            (d) Attachment and Levy. No Plan Award shall be subject, in whole or
in part, to attachment, execution or levy of any kind, and any purported
transfer in violation hereof shall be null and void. Without limiting the
generality of the foregoing, no domestic relations order purporting to authorize
a transfer of a Plan Award, or to grant to any person other than the Participant
the authority to exercise or otherwise act with respect to a Plan Award, shall
be recognized as valid.

                                      -9-
<PAGE>   10

SECTION 10. DESIGNATION OF BENEFICIARIES

       Anything contained in the Plan to the contrary notwithstanding, a
Participant may file with the Company a written designation of a beneficiary or
beneficiaries under the Plan (subject to such limitations as to the classes and
number of beneficiaries and contingent beneficiaries and such other limitations
as the Committee from time to time may prescribe). A Participant shall be deemed
to have designated as beneficiary or beneficiaries under the Plan the person or
persons who receive such Participant's life insurance proceeds under the basic
Company Life Insurance Plan unless such Participant shall have assigned such
life insurance or shall have filed with the Company a written designation of a
different beneficiary or beneficiaries under the Plan. A Participant may from
time to time revoke or change any such designation of beneficiary. Any
designation of beneficiary under the Plan shall be controlling over any other
disposition, testamentary or otherwise; provided, however, that if the Committee
shall be in doubt as to the entitlement of any such beneficiary to any Right,
Final Award, Option, Stock Appreciation Right or Other Stock-Based Award, or if
applicable law requires the Company to do so, the Committee may determine to
recognize only the legal representative of such Participant, in which case the
Company, the Committee and the members thereof shall not be under any further
liability to anyone. In the event of the death of any Participant, the term
"Participant" as used in the Plan shall thereafter be deemed to refer to the
beneficiary designated pursuant to this Section 10 or, if no such designation is
in effect, the executor or administrator of the estate of such Participant,
unless the context otherwise requires.

SECTION 11. MERGER, CONSOLIDATION, STOCK DIVIDENDS, ETC.

            (a) Adjustments. In the event of any merger, consolidation,
reorganization, stock split, stock dividend or other event affecting Stock, an
appropriate adjustment shall be made in the total number of shares available for
Plan Awards and in all other provisions of the Plan that include a reference to
a number of shares, and in the numbers of shares covered by, and other terms and
provisions of (including but not limited to the grant or exercise price of any
Plan Award) outstanding Plan Awards.

            (b) Committee Determinations. The foregoing adjustments and the
manner of application of the foregoing provisions shall be determined by the
Committee in its sole discretion. Any such adjustment may provide for the
elimination of any fractional share which might otherwise become subject to a
Plan Award.

SECTION 12. ACCELERATION OF PAYMENT OR MODIFICATION OF PLAN AWARDS

            (a) The Committee, in the event of the death of a Participant or in
any other circumstance, may accelerate distribution of any Plan Award in its
entirety or in a reduced amount, in cash or in Stock, or modify any Plan Award,
in each case on such basis and in such manner as the Committee may determine in
its sole discretion.

            (b) Notwithstanding any other provision of the Plan, unless the
Committee determines otherwise at the time of grant, upon the occurrence of a
Change in Control, (i) any Plan Awards outstanding as of the date of such Change
in Control, and that are not then vested, shall become fully vested, and (ii)
any restrictions or other conditions applicable to any outstanding Awards shall
lapse, and such Plan Awards shall become free of all restrictions and
conditions.

SECTION 13. RIGHTS AS A STOCKHOLDER

       A Participant shall not have any rights as a stockholder with respect to
any share covered by any Plan Award until such Participant shall have become the
holder of record of such share.

SECTION 14. TERM, AMENDMENT, MODIFICATION AND TERMINATION OF THE PLAN AND
            AGREEMENTS

            (a) Term. Unless terminated earlier pursuant to subsection (b), the
Plan shall terminate on          , 2010.

            (b) Amendment, Modification and Termination of Plan. The Board may,
from time to time, amend or modify the Plan or any outstanding Plan Award,
including without limitation, to authorize the Committee to make Plan Awards
payable in other securities or other forms of property of a kind to be
determined by the Committee, and such other amendments as may be necessary or
desirable to implement such Plan Awards, or terminate the Plan or any provision
thereof, provided, however, that no such action of the Board, without approval
of the stockholders, may (i) increase the total number of shares of Stock with
respect to which Plan Awards may be granted under the Plan or the individual
limits specified in Section 3(a), (ii) extend the term of the Plan as set forth
in paragraph (a) of this Section 14, (iii) permit any person while a member of
the Committee or any other committee of the Board administering the Plan to be
eligible to receive or hold a Plan Award, or (iv) permit the Company to decrease
the grant price of any outstanding Option or Stock Appreciation Right.

            (c) No amendment to or termination of the Plan or any provision
hereof, and no amendment or cancellation of any outstanding Plan Award, by the
Board or the stockholders of the Company, shall, without the written consent of
the affected Participant, adversely affect any outstanding Plan Award. The
Committee's authority to act with respect to any outstanding Plan Award shall
survive termination of the Plan.

                                      -10-
<PAGE>   11

            (d) Notwithstanding the foregoing provisions, the Board shall have
authority to amend outstanding Plan Awards and the Plan to take into account
changes in law and tax and accounting rules as well as other developments, and
to grant Plan Awards that qualify for beneficial treatment under such rules
without stockholder approval.

SECTION 15. INDEMNIFICATION AND EXCULPATION

            (a) Indemnification. Each person who is or shall have been a member
of the Board, the Committee, or of any other committee of the Board
administering the Plan or of any committee appointed by the foregoing
committees, shall be indemnified and held harmless by the Company against and
from any and all loss, cost, liability or expense that may be imposed upon or
reasonably incurred by such person in connection with or resulting from any
claim, action, suit or proceeding to which such person may be or become a party
or in which such person may be or become involved by reason of any action taken
or failure to act under the Plan and against and from any and all amounts paid
by such person in settlement thereof (with the Company's written approval) or
paid by such person in satisfaction of a judgment in any such action, suit or
proceeding, except a judgment in favor of the Company based upon a finding of
such person's lack of good faith; subject, however, to the condition that, upon
the institution of any claim, action, suit or proceeding against such person,
such person shall in writing give the Company an opportunity, at its own
expense, to handle and defend the same before such person undertakes to handle
and defend it on such person's behalf. The foregoing right of indemnification
shall not be exclusive of any other right to which such person may be entitled
as a matter of law or otherwise, or any power that the Company may have to
indemnify or hold such person harmless.

            (b) Exculpation. Each member of the Board, the Committee, or of any
other committee of the Board administering the Plan or any committee appointed
by the foregoing committees, and each officer and employee of the Company, shall
be fully justified in relying or acting in good faith upon any information
furnished in connection with the administration of the Plan by any appropriate
person or persons other than such person. In no event shall any person who is or
shall have been a member of the Board, the Committee, or of any other committee
of the Board administering the Plan or of any committee appointed by the
foregoing committees, or an officer or employee of the Company, be held liable
for any determination made or other action taken or any omission to act in
reliance upon any such information, or for any action (including the furnishing
of information) taken or any failure to act, if in good faith.

SECTION 16. EXPENSES OF PLAN

       The entire expense of offering and administering the Plan shall be borne
by the Company and its participating subsidiaries; provided, that costs and
expenses associated with the redemption or exercise of any Plan Award, including
but not limited to commissions charged by any agent of the Company, may be
charged to the Participants.

SECTION 17. FINALITY OF DETERMINATIONS

       Each determination, interpretation, or other action made or taken
pursuant to the provisions of the Plan by the Board, the Committee or any
committee of the Board of Directors administering the Plan or any committee
appointed by the foregoing committees shall be final and shall be binding and
conclusive for all purposes and upon all persons, including, but without
limitation thereto, the Company, the stockholders, the Committee and each of the
members thereof, and the directors, officers, and employees of the Company and
its subsidiaries, the Participants, and their respective successors in interest.

SECTION 18. NO RIGHTS TO CONTINUED EMPLOYMENT OR TO PLAN AWARD

            (a) Nothing contained in this Plan, or in any booklet or document
describing or referring to the Plan, shall be deemed to confer on any
Participant the right to continue as an employee or director of the Company,
whether for the duration of any Performance Period, the duration of any vesting
period under a Plan Award, or otherwise, or affect the right of the Company to
terminate the employment of any Participant for any reason.

            (b) No Employee or other person shall have any claim or right to be
granted a Plan Award under the Plan. Having received an Award under the Plan
shall not give a Participant or any other person any right to receive any other
Plan Award under the Plan. A Participant shall have no rights in any Plan Award,
except as set forth herein and in the applicable award grant.

                                      -11-
<PAGE>   12

SECTION 19. GOVERNING LAW AND CONSTRUCTION

       The Plan and all actions taken hereunder shall be governed by, and the
Plan shall be construed in accordance with, the laws of the State of Delaware
without regard to the principle of conflict of laws. Titles and headings to
Sections are for purposes of reference only, and shall in no way limit, define
or otherwise affect the meaning or interpretation of the Plan.

SECTION 20. SECURITIES AND STOCK EXCHANGE REQUIREMENTS

            (a) Restrictions on Resale. Notwithstanding any other provision of
the Plan, no person who acquires Stock pursuant to the Plan may, during any
period of time that such person is an affiliate of the Company (within the
meaning of the rules and regulations of the Securities Exchange Commission) sell
or otherwise transfer such Stock, unless such offer and sale or transfer is made
(i) pursuant to an effective registration statement under the Securities Act of
1933 ("1933 Act"), which is current and includes the Stock to be sold, or (ii)
pursuant to an appropriate exemption from the registration requirements of the
1933 Act, such as that set forth in Rule 144 promulgated pursuant thereto.

            (b) Registration, Listing and Qualification of Shares of Common
Stock. Notwithstanding any other provision of the Plan, if at any time the
Committee shall determine that the registration, listing or qualification of the
Stock covered by a Plan Award upon any securities exchange or under any foreign,
federal, state or local law or practice, or the consent or approval of any
governmental regulatory body, is necessary or desirable as a condition of, or in
connection with, the granting of such Plan Award or the purchase or receipt of
Stock in connection therewith, no Stock may be purchased, delivered or received
pursuant to such Plan Award unless and until such registration, listing,
qualification, consent or approval shall have been effected or obtained free of
any condition not acceptable to the Committee. Any person receiving or
purchasing Stock pursuant to a Plan Award shall make such representations and
agreements and furnish such information as the Committee may request to assure
compliance with the foregoing or any other applicable legal requirements. The
Company shall not be required to issue or deliver any certificate or
certificates for Stock under the Plan prior to the Committee's determination
that all related requirements have been fulfilled. The Company shall in no even
be obligated to register any securities pursuant to the 1933 Act or applicable
state or foreign law or to take any other action in order to cause the issuance
and delivery of such certificates to comply with any such law, regulation, or
requirement.

                                      -12-

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