Document:

EX-10(Z)(2)

 

			
	EXECUTION VERSION
	 	Exhibit 10-Z(2)

Dated 18 July 2007

	 
	 	 	 	 
	(1)	 	DANA EUROPE FINANCING (IRELAND) LIMITED
	 
	(2)	 	DANA INTERNATIONAL LUXEMBOURG SARL
	 
	(3)	 	The Originators
	 
	(4)	 	GE LEVERAGED LOANS LIMITED
	 
	(5)	 	GE FACTOFRANCE SNC
	 
	(6)	 	DANA EUROPE S.A.
	 
	(7)	 	The Lenders
	 
	(8)	 	Certain other parties from time to time party to the Transaction Documents
described herein.

 

MASTER SCHEDULE OF DEFINITIONS, 
INTERPRETATION AND CONSTRUCTION

 

 

LONDON

 

 

CONTENTS

	 	 	 	 	 	 	 
	Clause	 	Page	 
	 
	 	 	 	 
	1.
	 	Schedule Documents	 	 	1	 
	2.
	 	Definitions	 	 	1	 
	 
	 	2.1               Certain defined terms	 	 	1	 
	 
	 	2.2               Other terms	 	 	52	 
	 
	 	2.3               Computation of time periods	 	 	54	 
	3.
	 	Miscellaneous	 	 	54	 
	 
	 	3.1               Amendment	 	 	54	 
	 
	 	3.2               Notices	 	 	55	 
	 
	 	3.3               Governing Law	 	 	55	 
	 
	 	3.4               Execution in counterparts	 	 	55	 
	4.
	 	Accession of Originators	 	 	56	 
	 
	 	4.1               Deed of Accession	 	 	56	 
	 
	 	4.2               Effect of Deed of Accession	 	 	56	 
	 
	 	4.3               Acknowledgements and confirmations	 	 	56	 

Schedules

	 	 	 
	1.

	 	Address and Notice Information
	2.

	 	Conditions Precedent for the Initial Austrian Effective Date
	3.

	 	Conditions Precedent for the Initial Belgian Effective Date
	4.

	 	Conditions Precedent for the Initial French Effective Date
	5.

	 	Conditions Precedent for the Initial Italian Effective Date
	6.

	 	Conditions Precedent for the Initial Spanish Effective Date
	7.

	 	Form of Deed of Accession
	8.

	 	Facility Accounts and Account Banks
	9.

	 	Dana Europe Organisational Chart
	10.

	 	Permitted Disposals
	11.

	 	Repatriation Plan
	12.

	 	Permitted Indebtedness
	13.

	 	Permitted Loans
	14.

	 	Permitted Transactions

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MASTER SCHEDULE OF DEFINITIONS, INTERPRETATION AND CONSTRUCTION

	1.	 	SCHEDULE DOCUMENTS
	 
	 	 	The Schedule Documents are as follows:

	 	(a)	 	this Master Schedule of Definitions, Interpretation and Construction;
	 
	 	(b)	 	the Receivables Loan Agreement;
	 
	 	(c)	 	the Servicing Agreement;
	 
	 	(d)	 	the Performance Undertaking;
	 
	 	(e)	 	the Subordinated Loan Agreement;
	 
	 	(f)	 	each Originator Sale Agreement, other than the Italian RPA;
	 
	 	(g)	 	each Intermediate Transfer Agreement;
	 
	 	(h)	 	the Security Agreement;
	 
	 	(i)	 	each Account Security Agreement;
	 
	 	(j)	 	the Spanish Account Agency Agreement;
	 
	 	(k)	 	the Spanish Seller Payout Call Option Agreements;
	 
	 	(l)	 	the Corporate Services Agreements;
	 
	 	(m)	 	each Fee Letter; and
	 
	 	(n)	 	each other Transaction Document and each other instrument, document and other
agreement from time to time executed in connection with the foregoing.

	2.	 	DEFINITIONS
	 
	2.1	 	Certain defined terms
	 
	 	 	Except where the context otherwise requires, the following terms used in the Schedule
Documents have the following meanings:
	 
	 	 	“Account Security Agreements” means, as the context requires all or any one of, the Austrian
Account Security Agreements, the Belgian Account Security Agreements, the French Account
Security Agreements, the German Account Security Agreements, the Italian Account Security
Agreements and the Spanish Account Security Agreements.
	 
	 	 	“Adjusted EBITDA” means, for any period determined on an aggregated basis for the Dana
European Entities, the Borrower and the Spanish Account SPV in accordance with Modified
GAAP, without duplication as calculated below:

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	 	(a)	 	Net Income less (without duplication and to the extent included in Net Income)
(i) income from forward contracts (on a mark-to-market basis), (ii) net income from
discontinued operations (iii) interest income, (iv) corporate and income tax credits
(v) non-recurring, transactional or unusual gains and (vi) equity earnings from
Affiliates,
	 
	 	(b)	 	plus (without duplication and to the extent deducted in calculating Net Income)
(i) expense from forward contracts (on a mark-to-market basis), (ii) net losses from
discontinued operations, (iii) interest expense, (iv) tax expense relating to corporate
or income tax, (v) depreciation expense, (vi) amortisation expense, (vii) amounts
deposited or invested in the Dana European Legal Group under the circumstances
described in Clause 10.3(a) (Financial covenant) of the Performance Undertaking which
amounts, for the avoidance of doubt, shall only be included in the calculation of
Adjusted EBITDA under the circumstances where the Fixed Charges Coverage Ratio is to be
recalculated treating such amounts as part of Adjusted EBITDA in accordance with the
terms of the Transaction Documents, (viii) facility fees, unused commitment fees,
letter of credit fees and similar fees, (ix) non-cash non-recurring transactional or
unusual losses (provided such losses are adequately demonstrated to the Administrative
Agent to be non-cash in nature), (x) non-cash Restructuring Charges (provided such
Restructuring Charges are adequately demonstrated to the Administrative Agent to be
non-cash in nature), (xi) cash non-recurring transactional or unusual losses and cash
Restructuring Charges up to an aggregate amount of €5,000,000 in any rolling 12 month
period, (xii) Transaction Fees, (xiii) equity losses from Affiliates and (xiv) minority
interests.

	 	 	“Adjusted Eurocurrency Rate” means, for any Interest Period, an interest rate per annum
obtained by dividing (a) the Eurocurrency Rate for such Interest Period by (b) a percentage
equal to 100% minus the Eurocurrency Rate Reserve Percentage for such Interest Period.
	 
	 	 	“Administrative Agent” means GE Leveraged Loans Limited, in its capacity as administrative
agent for the Lenders, and any successor thereto in such capacity appointed pursuant to
Clause 8 (The Administrative Agent) of the Receivables Loan Agreement.
	 
	 	 	“Administrative Agent Fee Letter” has the meaning specified in Clause 2.4(b) (Interest and
Fees) of the Receivables Loan Agreement.
	 
	 	 	“Adverse Claim” means a mortgage, charge, pledge, lien or other security interest (including
any lien by attachment, retention of title and any form of extended retention of title),
securing any obligation of any Person or any other agreement or arrangement having a similar
effect.
	 
	 	 	“Affiliate” means any Person directly or indirectly controlling, controlled by, or under
direct or indirect common control with, another Person or any subsidiary of such other
Person. A Person shall be deemed to control another Person if the controlling Person owns
51% or more of any class of equity voting securities or other ownership interests in the
controlled Person or possesses, directly or indirectly, the

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	 	 	power to direct or cause the direction of the management or policies of the controlled
Person, whether through ownership of share capital, by contract or otherwise.
	 
	 	 	“Agreed Annual Income” means, with respect to (a) the Spanish Account SPV, the amount
payable to the Spanish Account SPV pursuant to the Transaction Documents to which the
Spanish Account SPV is a party or such other amount as may otherwise be agreed between the
Borrower, the Administrative Agent and the Spanish Account SPV and (b) the Borrower, €1,000
per annum or such other amount as may be agreed between the Borrower, the Servicer and the
Administrative Agent.
	 
	 	 	“Agreed Form” in relation to any document means the form agreed by, and initialled for the
purpose of identification by or on behalf of, the Administrative Agent and the Performance
Undertaking Provider, as amended from time to time with the consent of the Performance
Undertaking Provider and the Administrative Agent in writing.
	 
	 	 	“Aggregate Commitment” means, at any time, the sum of the Commitments then in effect. The
initial Aggregate Commitment as of the Closing Date shall be equal to €170,000,000.
	 
	 	 	“Aggregate Principal Balance” means the aggregate outstanding Principal Balance (in Euro or
the Euro Equivalent) of the Loans hereunder provided that, solely for the purposes of
computing whether the Aggregate Principal Balance exceeds the Maximum Aggregate Principal
Balance, the Aggregate Principal Balance on any day shall be deemed to be reduced by an
amount equal to the aggregate amount of funds (in Euro or the Euro Equivalent) then held in
the Borrower Operating Account (Principal) and which are then available to be withdrawn and
applied to reduce the Aggregate Principal Balance on the date of such computation.
	 
	 	 	“Alternative Rate” has the meaning specified in Clause 2.12(b) (Illegality) of the
Receivables Loan Agreement.
	 
	 	 	“Alternative Rate Loan” has the meaning specified in Clause 2.12(a) (Illegality) of the
Receivables Loan Agreement.
	 
	 	 	“Applicable MAPB Percentage” means the sum of:

	 	(a)	 	(i) during a Trigger Period, 85%; or

	 	(ii)	 	during the period commencing on the last day of the immediately
preceding Trigger Period and ending on the second consecutive quarterly Testing
Date thereafter on which the Fixed Charges Coverage Ratio is at least 1.5:1,
92.5%; or
	 
	 	(iii)	 	at all other times, 100%,

	 	 	less:

	 	(b)	 	at all times whilst the Servicer is delivering Roll-Forward Reports pursuant to
Clause 2.3(d) (Roll-Forward Reports) of the Servicing Agreement in respect of the
Receivables of any Originator on a monthly basis in accordance with the proviso set
forth in that Clause, 5%; and

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	 	(c)	 	after 31 October 2007, at all times whilst the Servicer is delivery
Roll-Forward Reports pursuant to Clause 2.3(d) (Roll-Forward Reports) of the Servicing
Agreement in respect of the Receivables of any Originator on a monthly basis in
accordance with the proviso set forth in that Clause, a further 5% (which further
reduction in the Applicable MAPB Percentage is, for the avoidance of doubt, in addition
to any reduction pursuant to paragraph (b) above); and
	 
	 	(d)	 	during a Dilution Trigger Period, 5% or such other percentage as may otherwise be
determined by the Administrative Agent and notified to the Borrower in accordance with
Clause 2.20 (Adjustments to the Applicable MAPB Percentage) of the Receivables Loan
Agreement; and
	 
	 	(e)	 	during a DSO Trigger Period, 5% or such other percentage as may otherwise be determined
by the Administrative Agent and notified to the Borrower in accordance with Clause 2.20
(Adjustments to the Applicable MAPB Percentage) of the Receivables Loan Agreement,

	 	 	provided that for the purposes of determining the Applicable MAPB Percentage the Fixed
Charges Coverage Ratio as of each Testing Date shall have been calculated without taking
into account any Covenant Correction Amount.
	 
	 	 	“Applicable Margin” has the meaning specified in the Lender Fee Letter.
	 
	 	 	“Approved Currency” means Euros, U.S. Dollars and Sterling.
	 
	 	 	“Approved Obligor Jurisdiction” means any Approved Originator Jurisdiction, Australia,
Canada (excluding the province of Quebec), Czech Republic, Finland, Ireland, Japan, the
Netherlands, Norway, Portugal, Scotland, Sweden, Switzerland, England and Wales, the U.S.
and any other jurisdiction approved in writing by the Administrative Agent.
	 
	 	 	“Approved Originator Jurisdiction” means Austria, Belgium, France, Germany, Italy and Spain
and any other jurisdiction approved in writing by the Administrative Agent and the Required
Lenders.
	 
	 	 	“Assignment and Acceptance” means an assignment and acceptance agreement entered into by a
Lender, an Eligible Assignee and the Administrative Agent, pursuant to which such Eligible
Assignee may become a party to the Receivables Loan Agreement in substantially the form of
Exhibit A (Form of Assignment and Acceptance) to the Receivables Loan Agreement.
	 
	 	 	“Austrian Account Security Agreement” means any agreement designated as such in any Austrian
RPA.
	 
	 	 	“Austrian Collection Account Bank” means any bank or other financial institution set forth
on Schedule 8 (Facility Accounts and Account Banks) under the heading “Austrian
Collection Account Banks”, as such Schedule may be amended from time to time in accordance
herewith.

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	 	 	“Austrian Intermediate Transfer Agreement” means the Austrian Intermediate Transfer
Agreement, dated on or about the Initial Austrian Effective Date, among the Intermediate
Transferor and the Borrower.
	 
	 	 	“Austrian Originators” means each entity designated as a “Seller” under an Austrian RPA.
	 
	 	 	“Austrian RPA” means the receivables purchase agreement, dated on or about the Initial
Austrian Effective Date, between Dana Austria GmbH and the Intermediate Transferor, and such
additional Austrian law receivables purchase agreements as may be entered into from time to
time pursuant to Clause 10.12(b) (Limitation on the addition and termination of Originators)
of the Receivables Loan Agreement, for so long as such agreements remain in full force and
effect.
	 
	 	 	“Belgian Account Security Agreement” means any agreement designated as such in any Belgian
RPA.
	 
	 	 	“Belgian Collection Account Bank” means any bank or other financial institution set forth on
Schedule 8 (Facility Accounts and Account Banks) under the heading “Belgian Collection
Account Banks”, as such Schedule may be amended from time to time in accordance herewith.
	 
	 	 	“Belgian Originators” means each entity designated as a “Seller” under a Belgian RPA.
	 
	 	 	“Belgian RPA” means the receivables purchase agreement, dated on or about the Initial
Belgian Effective Date, between Spicer Off-Highway Belgium and the Borrower, and such
additional Belgian law receivables purchase agreements as may be entered into from time to
time pursuant to Clause 10.12(b) (Limitation on the addition and termination of Originators)
of the Receivables Loan Agreement, for so long as such agreements remain in full force and
effect.
	 
	 	 	“Bills of Exchange Redirection Date” means in respect of an Originator, the day falling
thirty (30) days after the Initial Effective Date applicable to such Originator.
	 
	 	 	“Borrower” means Dana Europe Financing (Ireland) Limited, a limited liability company
incorporated under the laws of Ireland.
	 
	 	 	“Borrower Operating Account” means any account set forth on Schedule 8 (Facility Accounts
and Account Banks) under the heading “Borrower Operating Accounts”, as such Schedule may be
amended from time to time in accordance herewith.
	 
	 	 	“Borrower Operating Account Bank” means any bank or other financial institution set forth on
Schedule 8 (Facility Accounts and Account Banks) under the heading “Borrower Operating
Account Bank”, as such Schedule may be amended from time to time in accordance herewith.
	 
	 	 	“Borrower Operating Account (Interest)” means the internal sub-account or ledger of such
name created and maintained by or on behalf of the Borrower as records in the books of the
Borrower for the purposes of allocating the proceeds of

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	 	 	Collections paid into and standing to the credit of the Borrower Operating Accounts in
accordance with the terms of the Transaction Documents.
	 
	 	 	“Borrower Operating Account (Principal)” means the internal sub-account or ledger of such
name created and maintained by or on behalf of the Borrower as records in the books of the
Borrower for the purposes of allocating the proceeds of Collections paid into and standing
to the credit of the Borrower Operating Accounts in accordance with the terms of the
Transaction Documents.
	 
	 	 	“Borrower Receivables Interest” means any ownership interest, participation interest,
security interest or other interest or right of any nature in Receivables and any Related
Security with respect thereto (together with rights to payment in respect of any loan
secured by such security interest) that has been acquired by or has accrued to the benefit
of the Borrower from an Intermediate Transferor pursuant to an Intermediate Transfer
Agreement.
	 
	 	 	“Borrowing” means the amount requested by the Borrower in a Borrowing Request pursuant to
Clause 2.2 (Borrowing procedures) of the Receivables Loan Agreement.
	 
	 	 	“Borrowing Date” has the meaning specified in Clause 2.2(a)(i) (Borrowing procedures) of the
Receivables Loan Agreement.
	 
	 	 	“Borrowing Request” has the meaning specified in Clause 2.2(a)(i) Borrowing procedures) of
the Receivables Loan Agreement.
	 
	 	 	“Business Day” means a day (other than a Saturday or Sunday) on which banks are open for
general business in London, New York City, Dublin, Luxembourg, Paris, Amsterdam and Zurich
and:

	 	(a)	 	(in relation to any date for payment or purchase of a currency other than Euro)
the principal financial centre of the country of that currency;
	 
	 	(b)	 	(in relation to any date for payment or purchase of Euro) any TARGET Day;
	 
	 	(c)	 	for the purposes of the German RPA, a day (other than a Saturday or Sunday) on
which banks are open for general business in Frankfurt;
	 
	 	(d)	 	for the purposes of the Austrian RPA and the Austrian Intermediate Transfer
Agreement, a day (other than a Saturday or Sunday) on which banks are open for general
business in Vienna;
	 
	 	(e)	 	for the purposes of the Belgian RPA, a day (other than a Saturday or Sunday) on
which banks are open for general business in Brussels;
	 
	 	(f)	 	for the purposes of the Spanish RPA, a day (other than a Saturday or Sunday) on
which banks are open for general business in Madrid; or
	 
	 	(g)	 	for the purposes of the Italian RPA and the Italian Intermediate Transfer
Agreement, a day (other than a Saturday or Sunday) on which banks are open for general
business in Milan.

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	 	 	“Calculation Period” means each period from and including the first day of a calendar month
to and including the last day of such calendar month (whether such month occurs before or
after the Closing Date).
	 
	 	 	“Capital Expenditures” means, for any period, the sum (without duplication) of all
expenditures made, directly or indirectly, by the Dana European Entities, the Borrower and
the Spanish Account SPV determined on an aggregated basis in accordance with Modified GAAP
as reported by HFM during such period for equipment, fixed assets, real property or
improvements, or for replacements or substitutions therefor or additions thereto, that
should be, in accordance with Modified GAAP, reflected as additions to property, plant or
equipment on a Person’s balance sheet. For purposes of this definition, the purchase price
of equipment that is purchased simultaneously with the trade in of existing equipment or
with insurance proceeds shall be included in Capital Expenditures only to the extent of the
gross amount of such purchase price less the credit granted by the seller of such equipment
for the equipment being traded in at such time or the amount of such proceeds, as the case
may be.
	 
	 	 	“Capitalised Lease Obligation” means, of any Person, the obligations of such Person to pay
rent or other amounts under any lease of (or other arrangement conveying the right to use)
real or personal property, or a combination thereof, which obligations are required to be
classified and accounted for as capital leases on a balance sheet of such Person under GAAP
and, for purposes hereof, the amount of such obligations at any time shall be the
capitalised amount thereof at such time determined in accordance with GAAP.
	 
	 	 	“Change in Law” means (a) the adoption of any Law after the Closing Date, (b) any change in
Law or in the interpretation or application thereof by any Official Body after the Closing
Date or (c) compliance by any Indemnified Party, by any lending office of such Indemnified
Party or by such Indemnified Party’s holding company, if any, with any request, guideline or
directive (whether or not having the force of law) of any Official Body made or issued after
the Closing Date.
	 
	 	 	“Change of Control” means the occurrence of any of the following:

	 	(a)	 	there is any change in the aggregate outstanding Equity Interests owned
(directly or indirectly) by Dana International Luxembourg SARL in any Originator (other
than a Spanish Originator) or the Subordinated Lender from those shown on the
organisational chart set forth on Schedule 9 (Dana Europe Organisational Chart);
	 
	 	(b)	 	any Spanish Originator ceases to be a direct or indirect wholly-owned
subsidiary of Dana Corporation or Dana International Luxembourg SARL;
	 
	 	(c)	 	the Equity Holder ceases to own, directly or indirectly free and clear of any
Adverse Claim, 100% of the outstanding Equity Interests of the Borrower;
	 
	 	(d)	 	the Borrower ceases to own, free and clear of any Adverse Claim (other than a
Permitted Adverse Claim), 100% of the outstanding Equity Interests of the Spanish
Account SPV; or

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	 	(e)	 	the Servicer (for so long as it is Dana International Luxembourg SARL) or the
Performance Undertaking Provider ceases to be a direct or indirect wholly-owned
Subsidiary of Dana Corporation.

	 	 	“Closing Date” means 18 July 2007.
	 
	 	 	“Collateral” means (a) the “Charged Property” under and as defined in the Security Agreement
and (b) any other assets, property, rights, interests, claims or benefits in respect of
which an Adverse Claim has been created under or pursuant to the Security Documents.
	 
	 	 	“Collection Account Banks” means, as the context requires, all or any one of the Austrian
Collection Account Banks, the Belgian Collection Account Banks, the French Collection
Account Banks, the German Collection Account Banks, the Italian Collection Account Banks and
the Spanish Collection Account Banks.
	 
	 	 	“Collection Accounts” means, as the context requires, all or any one of the Existing
Collection Accounts or New Collection Accounts.
	 
	 	 	“Collections” means, collectively (without duplication) (a) all cash collections (including,
if applicable, any value added taxes) and other cash proceeds of the Pool Receivables,
including all Finance Charges, cash proceeds of Related Security with respect to any such
Receivable, any Deemed Collections of such Receivables and any payments made by any
Originator or the Servicer with respect to such Receivables (including any payments made
with respect to a Diluted Receivable or other Deemed Collections pursuant to the terms of
the relevant Originator Sale Agreement or the Servicing Agreement), (b) if applicable, all
recoveries of value added tax from any relevant Official Body relating to any Pool
Receivable that is a Defaulted Receivable and (c) all other cash collections and other cash
proceeds of the Collateral.
	 
	 	 	“Commitment” means, in respect of any Lender the Euro amount set forth on Schedule 1
(Commitments) of the Receivables Loan Agreement opposite such Lender’s name or, in the case
of a Lender that became a party to the Receivables Loan Agreement pursuant to an Assignment
and Acceptance, the Euro amount set forth therein as such Lender’s Commitment, in each case
as such amount may be (a) reduced or increased by any Assignment and Acceptance entered into
by such Lender in accordance with the terms of the Receivables Loan Agreement and (b)
reduced in accordance with Clause 2.1(b) (The Loans) of the Receivables Loan Agreement.
	 
	 	 	“Commitment Letter” means the commitment letter, dated 9 February 2007, between the
Structuring Agent and Dana Europe S.A..
	 
	 	 	“Concentration Limit” means, with respect to any Obligor (treating each Obligor and its
Affiliates as if they were a single Obligor) at any time, 10% of the aggregate Outstanding
Balance of the Pool Receivables that qualify as Eligible Receivables at such time.
	 
	 	 	“Contract” means, in relation to any Receivable, any and all contracts, instruments,
agreements, invoices, notes or other writings (including an agreement evidenced by a
purchase order or similar document) pursuant to or under which an Obligor becomes or is
obligated to make payments on or in respect of such Receivable.

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	 	 	“Contribution Notice” means a contribution notice issued by tPR under Section 38 or Section
42 of the Pensions Act.
	 
	 	 	“Corporate Services Agreements” means the Borrower corporate services agreement between,
amongst others, the Borrower and Structured Finance Management (Ireland) Limited as
Corporate Services Provider dated on or about the Closing Date, and the Spanish corporate
services agreement between, amongst others, the Spanish Account SPV and Structured Finance
Management (Spain), S.L. as Corporate Services Provider.
	 
	 	 	“Corporate Services Provider” means, in respect of the Borrower, Structured Finance
Management (Ireland) Limited and, in respect of the Spanish Account SPV, Structured Finance
Management (Spain), S.L.
	 
	 	 	“Covenant Correction Amount” means an amount, if any, in Euro equal to the Euro Equivalent
of the aggregate amount deposited or invested or required to be deposited or invested in the
Dana European Legal Group pursuant to Clause 10.3(a) (Financial covenant) of the Performance
Undertaking as at the immediately preceding Testing Date so that a recalculation in
accordance with such Clause of the Fixed Charges Coverage Ratio at as the relevant Testing
Date would be at least 1.25:1.
	 
	 	 	“Credit and Collection Policies” means, with respect to any Originator, those credit and
collection policies and practices of that Originator in effect on the Closing Date or, if
applicable, the date on which such Person becomes an Originator pursuant to Clause 10.12
(Limitation on the addition and termination of Originators) of the Receivables Loan
Agreement, and described in Schedule 2 (Credit and Collection Policies) of the relevant
Originator Sale Agreement, as modified in compliance with the Receivables Loan Agreement,
the relevant Originator Sale Agreement and the Servicing Agreement.
	 
	 	 	“Currency Percentage” means, on any date of determination for any Approved Currency, the
percentage of the aggregate Outstanding Balance of the Pool Receivables that are Eligible
Receivables represented by Eligible Receivables denominated in such Approved Currency,
rounded up or down by up to two decimal points by the Servicer. The aggregate Currency
Percentages for all Approved Currencies, as so rounded by the Servicer, shall in all cases
be equal to 100%.
	 
	 	 	“Daily Report” means a report furnished by or on behalf of the Servicer pursuant to Clause
2.3 (Reporting requirements) of the Servicing Agreement substantially in the form attached
as Exhibit A-1 (Form of Daily Report) to the Servicing Agreement.
	 
	 	 	“Dana European Entity” means any of (i) Dana Automocion S.A., (ii) Spicer Ayra Cardan, S.A.,
(iii) Dana International Luxembourg SARL, (iv) Dana SAS, (v) Thermal Products France SAS,
(vi) Spicer France Sarl, (vii) Dana Two SAS, (viii) Dana Europe Holdings B.V., (ix) Spicer
Nordiska Kardan AB, (x) Dana Europe SA, (xi) Dana Belgium BVBA, (xii) Spicer Off-Highway
Belgium, (xiii) Dana Italia S.p.A., (xiv) Dana Hungary Gyor kft, (xv) Dana Investment GmbH,
(xvi) Dana GmbH (Germany), (xvii) Dana (Deutschland) Grundstucksverwaltung GmbH, (xviii)
Reinz-Dichtungs GmbH, (ixx) Dana Holding GmbH, (xx) Spicer Off-Highway GmbH, (xxi) Spicer
Gelenkwellenbau GmbH and (xxii) Dana Austria GmbH but, as

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	 	 	the context may require, excluding the divisions of such entities that are scheduled for
disposal as described on Schedule 10 (Permitted Disposals).
	 
	 	 	“Dana European Legal Group” means the Dana European Entities other than Dana Automocion,
S.A. and Spicer Ayra Cardan, S.A. for so long as such entities are not Material Subsidiaries
of Dana International Luxembourg SARL.
	 
	 	 	“Data Feed” means a report furnished by the Servicer pursuant to Clause 2.3 (Reporting
requirements) of the Servicing Agreement substantially in the form attached as Exhibit A-2
(Form of Data Feed) to the Servicing Agreement.
	 
	 	 	“Data Protection Law” means the EU Data Protection Directive (95/46/EC), the Irish Data
Protection Act, 1988 and the Irish Data Protection (Amendment) Act 2003 or any other
applicable law or regulation relating to data protection or privacy.
	 
	 	 	“Days Sales Outstanding” in respect of any Calculation Period shall be calculated by
comparing the aggregate Outstanding Balance of all Pool Receivables as at the end of the
relevant Calculation Period (the “Gross Outstanding Receivables Balance”) against the
aggregate Outstanding Balance of Pool Receivables generated in that Calculation Period and
in each consecutive preceding Calculation Period until the aggregate Outstanding Balance
(when generated) of Pool Receivables generated in those preceding Calculation Periods (the
“Look Back Aggregate Outstanding Receivables Balance”) exceeds the Gross Outstanding
Receivables Balance; the average number of days shall then be calculated by adding together
(a) the number of days in each Calculation Period in which the Look Back Aggregate
Outstanding Receivables Balance did not exceed the Gross Outstanding Balance and (b) the
number of days in the Calculation Period in which the Look Back Aggregate Outstanding
Receivables Balance exceeded the Gross Outstanding Receivables Balance multiplied by a
fraction the numerator of which is the Gross Outstanding Receivables Balance less the Look
Back Aggregate Outstanding Receivables Balance calculated for those Calculation Periods
included in paragraph (a) above, and the denominator of which is the aggregate Outstanding
Balance of Pool Receivables generated in that Calculation Period, as such calculation and
applicable Calculation Periods may be more particularly described in the Agreed Form of the
Monthly Ratio Report. For purposes of the definition of Days Sales Outstanding, the first
Calculation Period shall be the first calendar month after the calendar month in which the
Closing Date occurred and each subsequent Calculation Period for purposes of this definition
shall be determined accordingly.
	 
	 	 	“Declaration of Trust” means the charitable share declaration of trust dated on or about the
Closing Date given by the Share Trustee as trustee of the Dana Europe Trust.
	 
	 	 	“Deed of Accession” means a deed substantially in the form set out in 7 (Form of Deed of
Accession).
	 
	 	 	“Deemed Collections” means any Collections on any Receivable paid or payable, as the context
requires, by an Originator pursuant to an Originator Sale Agreement, by the Servicer or a
Sub-Servicer pursuant to the Servicing Agreement or by the Borrower under the Receivables
Loan Agreement (regardless of whether received by any Person).

10

 

	 	 	“Default Rate” means a rate per annum equal to the Standard Rate plus 2.00%.
	 
	 	 	“Defaulted Receivable” means, without duplication, a Receivable (a) as to which any payment,
or part thereof, remains unpaid for 91 or more days from the original due date for such
Receivable, (b) as to which any payment, or part thereof, remains unpaid for 210 or more
days from the invoice date of such Receivable, (c) as to which an Event of Bankruptcy has
occurred and is continuing with respect to the Obligor thereof, (d) which has been
identified by the relevant Originator as uncollectable in accordance with the applicable
Credit and Collection Policy, or (e) which, in accordance with the applicable Credit and
Collection Policies, has been or should be written off as uncollectable.
	 
	 	 	“Designated Account” means, with respect to any Originator, the Servicer, the Subordinated
Lender, the Performance Undertaking Provider or the Spanish Account SPV, any bank account
designated from time to time by such Person with the approval of the Performance Undertaking
Provider and notified in writing to the Borrower, the Servicer and the Administrative Agent.
	 
	 	 	“Diluted Receivable” means any Receivable or part thereof which is either (a) reduced,
cancelled or adjusted as a result of (i) any defective, rejected or returned goods,
merchandise or services or any failure by the relevant Originator to deliver any merchandise
or goods or provide any services or otherwise to perform under any related Contract, (ii)
any change in the terms of, or cancellation of, a Contract or invoice or any rebate,
administrative fee, discount, credit memo, refund, non-cash payment (other than payments by
cheque), chargeback, allowance or any billing or other adjustment by the relevant Originator
(except any such change or cancellation made in settlement of such Receivable in accordance
with the Credit and Collection Policies resulting from the financial inability of the
Obligor to pay such Receivable) or (iii) any set off or offset in respect of a claim by the
relevant Obligor (whether such claim arises out of the same or a related transaction or an
unrelated transaction), or (b) subject to any specific counterclaim or defence whatsoever
(except the discharge in a proceeding under applicable Insolvency Law of the Obligor
thereof).
	 
	 	 	“Dilution” means any (a) reduction, cancellation or adjustment in a Receivable as a result
of (i) any defective, rejected or returned goods, merchandise or services or any failure by
the relevant Originator to deliver any merchandise or goods or provide any services or
otherwise to perform under any related Contract, (ii) any change in the terms of, or
cancellation of, a Contract or invoice or any rebate, administrative fee, discount, credit
memo, refund, non-cash payment (other than payments by cheque), chargeback, allowance or any
billing or other adjustment by the relevant Originator or (iii) any set off or offset in
respect of a claim by the relevant Obligor (whether such claim arises out of the same or a
related transaction or an unrelated transaction), or (b) subject to any specific
counterclaim or defence whatsoever, or (c) as to which an Event of Bankruptcy has occurred
and is continuing with respect to the Obligor thereof, or (d) which has been identified by
the relevant Originator as uncollectible in accordance with the applicable Credit and
Collection Policy, or (e) which, in accordance with the applicable Credit and Collection
Policies, has been or should be written off as uncollectible.
	 
	 	 	“Dilution Benchmark Percentage” means the average Dilution Ratio calculated on the basis of
the actual Dilution Ratios calculated as at the end of each of the

11

 

	 	 	Calculation Periods from and including 1 August 2007 to and including 30 November 2007
provided that, in calculating the Dilution Ratios for the purposes of determining the
Dilution Benchmark Percentage, Pool Receivables generated by the Dana Austria Axel Assembly
Plant in Voelkemarkt, Austria and Driveshaft Assembly Plant in Villefranche, France and
Dilutions arising in respect of such Pool Receivables shall be excluded from the
calculation.
	 
	 	 	“Dilution Ratio” means the ratio (expressed as a percentage) computed as of each Ratio
Reporting Date for the immediately preceding Calculation Period by dividing (a) the
aggregate amount (in Euro or the Euro Equivalent) of Dilutions arising during that
Calculation Period in respect of Pool Receivables, by (b) the aggregate amount (in Euro or
the Euro Equivalent) of all Pool Receivables that were generated during that Calculation
Period, as such calculation and applicable Calculation Period may be more particularly
described in the Agreed Form of Monthly Ratio Report. For purposes of the definition of
Dilution Ratio, the first Calculation Period shall be the first calendar month after the
calendar month in which the Closing Date occurred and each subsequent Calculation Period for
purposes of this definition shall be determined accordingly.
	 
	 	 	“Dilution Trigger Period” means the period commencing on (i) during the first three months
after 1st October 2007, the second consecutive Ratio Reporting Date on which the Dilution
Ratio is calculated to be more than 4%, and (ii) at all other times, the first Ratio
Reporting Date (and if there has been any Dilution Trigger Period prior to such Ratio
Reporting Date, on the first Ratio Reporting Date after the end of such Dilution Trigger
Period) that the three month rolling average Dilution Ratio is calculated to be more than
the Dilution Benchmark Percentage plus 2% and in each case ending on the third consecutive
Ratio Reporting Date thereafter on which the Dilution Ratio is less than or equal to the
Dilution Benchmark Percentage plus 2%.
	 
	 	 	“DIP” means the senior secured superpriority debtor-in-possession credit agreement dated as
of 13 April 2006 between, amongst others, Dana Corporation as debtor and
debtor-in-possession, and Citigroup North America, Inc. as administrative agent.
	 
	 	 	“Dollar Equivalent” means, at any time in relation to an amount denominated in a currency
other than U.S. Dollars, the U.S. Dollar equivalent of such amount determined by reference
to the Spot Rate determined as of the most recent Exchange Rate Determination Date pursuant
to Clause 2.16 (Conversion of currencies) of the Receivables Loan Agreement.
	 
	 	 	“DSO Trigger Period” means the period commencing on (i) during the first three months after
the Closing Date, the second consecutive Ratio Reporting Date, and (ii) at all other times,
the first Ratio Reporting Date (and if there has been any DSO Trigger Period prior to such
Ratio Reporting Date, on the first Ratio Reporting Date after the end of such DSO Trigger
Period) that the Days Sales Outstanding is calculated to be more than 79 days and ending on
the third consecutive Ratio Reporting Date thereafter on which the Days Sales Outstanding is
less than or equal to 79 days.
	 
	 	 	“Effective Redirection Percentage” means, as of any Ratio Reporting Date, the ratio
(expressed as a percentage) computed by reference to the immediately preceding Calculation
Period with respect to:

12

 

	 	(a)	 	the Originators (other than an Italian Originator), by dividing (i) the
aggregate amount of Collections and other amounts payable in respect of Receivables
originated by such Originators that were paid by the Obligors into the New Collection
Accounts (other than the New Italian Collection Accounts) during such Calculation
Period, by (ii) the aggregate amount of Collections and other amounts payable in
respect of Receivables originated by such Originators that were paid by the Obligors
into the Collection Accounts (other than the New Italian Collection Accounts and the
Existing Italian Collection Accounts) during such Calculation Period; and
	 
	 	(b)	 	the Italian Originators, by dividing (i) the aggregate amount of Collections
and other amounts payable in respect of Receivables originated by such Italian
Originators that were paid by the Obligors into the New Italian Collection Accounts
during such Calculation Period, by (ii) the aggregate amount of Collections and other
amounts payable in respect of Receivables originated by such Italian Originators that
were paid by the Obligors into the New Italian Collection Accounts and the Existing
Italian Collection Accounts during such Calculation Period.

	 	 	“Effective Redirection Target Percentage” means, as of any Ratio Reporting Date with respect
to which the immediately preceding Calculation Period was:

	 	(a)	 	in the case of each German Originator:

	 	(i)	 	the first or second Calculation Period falling after the
Closing Date, 0%
	 
	 	(ii)	 	the third, fourth or fifth Calculation Period falling after the
Closing Date, 20%;
	 
	 	(iii)	 	the sixth, seventh or eighth Calculation Period falling after
the Closing Date, 75%; and
	 
	 	(iv)	 	the ninth Calculation Period falling after the Closing Date or
any Calculation Period thereafter, 95%;

	 	(b)	 	in the case of each Italian Originator:

	 	(i)	 	the first or second Calculation Period falling after the
Initial Effective Date, 0%;
	 
	 	(ii)	 	the third, fourth or fifth Calculation Period falling after the
Initial Effective Date, 50%; and
	 
	 	(ii)	 	the sixth Calculation Period falling after the Initial
Effective Date or any Calculation Period thereafter, 95%; and

	 	(c)	 	in the case of an Originator other than a German Originator and an Italian
Originator:

	 	(i)	 	the first or second Calculation Period falling after the
Initial Effective Date applicable to such Originator, 0%

13

 

	 	(ii)	 	the third, fourth or fifth Calculation Period falling after the
Initial Effective Date applicable to such Originator, 20%;
	 
	 	(iii)	 	the sixth, seventh or eighth Calculation Period falling after
the Initial Effective Date applicable to such Originator, 75%; and
	 
	 	(iv)	 	the ninth Calculation Period falling after the Initial
Effective Date applicable to such Originator or any Calculation Period
thereafter, 95%;

	 	 	provided, that solely for purposes of the definition of Effective Redirection Target
Percentage, (i) in the case of the German Originator, the first Calculation Period shall be
the first calendar month after the calendar month in which the Closing Date occurred; and
(ii) in the case of an Originator other than a German Originator the first Calculation
Period shall be the first calendar month after the calendar month in which the Initial
Effective Date applicable to such Originator occurred, and each subsequent Calculation
Period for purposes of this definition shall be determined accordingly.
	 
	 	 	“Eligible Account Bank” means

	 	(a)	 	in the case of an Existing Collection Account, the bank or other financial
institution set forth on Schedule 8 (Facility Accounts and Account
Banks) as the account bank in respect of such Existing Collection Account as at the
Closing Date, or
	 
	 	(b)	 	an entity (i) authorised to accept deposits in the relevant jurisdiction, (ii)
unless the Administrative Agent consents in writing otherwise, which has, or whose
direct or indirect parent undertaking has, unsecured and uncollateralised debt
obligations rated at least A-1 by S&P and P-1 by Moody’s and (iii) has a combined
capital and surplus of at least €100,000,000 (or the Euro Equivalent thereof).

	 	 	“Eligible Assignee” means, with respect to any Lender, any Person (a) that is a Qualifying
Lender at the time of the related assignment and that is an institutional investor who
regularly engages in the ordinary course in the origination of, or participation in the
primary syndication of, asset-backed and/or asset-based financings in the European and/or
U.S. markets, and (b) any other Person that is a Qualifying Lender and that has been
approved by the Servicer provided that no such Approval shall be required after the
occurrence and during the continuance of a Facility Termination Event or Facility Suspension
Event.
	 
	 	 	“Eligible Obligor” means any Obligor (a) that is a resident of an Approved Obligor
Jurisdiction, (b) that is not an Official Body (other than any Official Body that is a body
corporate created under public Law all or part of whose activities is commercial and which
does not benefit from sovereign immunity) or an Affiliate of any Transaction Party, (c) that
is not an individual, (d) that is not the subject of an Event of Bankruptcy, and (f) with
respect to which not more than 50% of the aggregate Outstanding Balance of the Receivables
owing by such Obligor are more than 90 days past their original due date.

14

 

	 	 	“Eligible Receivable” means, at any time, any Receivable:

	 	(a)	 	which has been originated by an Originator and validly sold by such Originator
to a Purchaser pursuant to (and in accordance in all material respects with) an
Originator Sale Agreement with the result that such Purchaser has good and marketable
title thereto (together with the Collections and Related Security related thereto),
free and clear of all Adverse Claims (other than Permitted Adverse Claims); and
	 
	 	(b)	 	which does not arise from the sale of any inventory (or other materials used to
render or process the goods related to such Receivable) that is subject to an Adverse
Claim (other than any Permitted Adverse Claim) covering the proceeds of such inventory,
if such Adverse Claim would extend to such Receivable; and
	 
	 	(c)	 	the Obligor of which is an Eligible Obligor; and
	 
	 	(d)	 	which has been billed to the relevant Obligor and, according to the terms
thereof and any Contract related thereto, is required to be paid in full (subject to
any contractual rebate or discount) within 150 days from the original billing date
therefore (provided, that, upon such Receivable becoming a Pool Receivable, the
aggregate Outstanding Balance of all Pool Receivables which according to the terms
thereof and any Contract related thereto are not required to be paid in full within 120
days from the original billing date therefore will not exceed an amount equal to 10%
times the aggregate Outstanding Balance of all Eligible Receivables that are Pool
Receivables at such time); and
	 
	 	(e)	 	which is denominated and payable only in an Approved Currency; and
	 
	 	(f)	 	which is not a Defaulted Receivable at such time; and
	 
	 	(g)	 	(i)   which arises pursuant to a Contract with respect to which the applicable
Originator has performed all obligations required to

       be performed by it thereunder in
order to have such Receivable become due and payable thereunder;

	 	(ii)	 	which does not arise from a sale pursuant to which the
applicable Obligor has the right to return the goods for which it has become
obligated to pay in the event it is unable to sell such goods and in respect of
which the applicable Originator is obligated to refund to such Obligor any
amount in respect of such returned goods, and
	 
	 	(iii)	 	as to which the Originator is in compliance in all material
respects with the terms of such Receivable or the related Contract; and

	 	(h)	 	which, is not evidenced or otherwise payable by chattel paper, a promissory
note, a bill of exchange or other instrument other than (A) a cheque (including those
cheques falling into the definition of Spanish Draft Instrument), (B) in the case of a
Receivable originated by a Spanish Originator (I) on or prior to the Bills of Exchange
Redirection Date, a Spanish Draft Instrument, and (II)

15

 

	 	 	 	after the Bills of Exchange Redirection Date, a Spanish Draft Instrument (except for
those mentioned in subparagraph (A) above) which is made payable to the order of the
Spanish Account SPV after the Bills of Exchange Redirection Date, and (C) in the
case of a Receivable originated by a French Originator (I) on or prior to the Bills
of Exchange Redirection Date, a French Bill of Exchange; and (II) after the Bills of
Exchange Redirection Date, a French Bill of Exchange which is made payable to the
order of the Borrower after the Bills of Exchange Redirection Date; and
	 
	 	(i)	 	which arises under a Contract that, together with such Receivable, is in full
force and effect and constitutes the legal, valid and binding obligation of the related
Obligor, enforceable against such Obligor except as such enforcement against such
Obligor may be limited by any applicable Insolvency Law or by general principles of law
or equity (regardless of whether enforcement is sought in a proceeding in equity or at
law), in each case, under all applicable Law, and is not subject to any litigation,
dispute, offset, counterclaim or other defence other than unexpired volume or pricing
discounts or rebates to which the Obligor thereon may be entitled; and
	 
	 	(j)	 	which, together with the Contract related thereto, does not contravene in any
material respect any Laws applicable thereto (including Laws relating to truth in
lending, cost of credit disclosure, fair credit billing, fair credit reporting, equal
credit opportunity, fair debt collection practices and privacy); and
	 
	 	(k)	 	which satisfies in all material respects all applicable requirements of the
applicable Originator’s Credit and Collection Policies; and
	 
	 	(l)	 	which was originated in the ordinary course of the applicable Originator’s
business and represents the purchase price of goods or services sold by such
Originator; and
	 
	 	(m)	 	the Obligor of which has been directed to make all payments (i) with respect to
any Receivable originated on or prior to the Closing Date, to an Existing Collection
Account or New Collection Account, in each case, with respect to which a valid and
enforceable Account Security Agreement and, in the case of a New Spanish Collection
Account, Spanish Account Agency Agreement is in effect, and (ii) with respect to any
Receivable originated after the Closing Date to a New Collection Account with respect
to which a valid and enforceable Account Security Agreement and, in the case of a New
Spanish Collection Account, Spanish Account Agency Agreement is in effect; and
	 
	 	(n)	 	which has not been compromised, adjusted or modified for credit reasons nor is
it subject to any downward adjustment for Tax, rebates or other reasons (including by
the extension of time for payment or the granting of any discounts, allowances or
credits); and
	 
	 	(o)	 	(i) the assignment of which (together with the Collections and Related Security
related thereto) under the applicable Originator Sale greement to a
Purchaser; and

16

 

	 	(ii)	 	the grant of a charge, security interest or pledge in respect
thereof (together with the Collections and Related Security related thereto) to
the Administrative Agent, on behalf of the Secured Parties, pursuant to the
Security Documents;

	 	 	 	in each case, does not in any material respect violate, conflict with or contravene
any applicable Laws or any contractual or other restriction, limitation or
encumbrance (including any restriction or limitation under the related Contract) and
does not require the consent of or notice to the applicable Obligor or any other
Person other than such consents as have been obtained and notices that have been
given (copies of which have been provided to the Administrative Agent); and
	 
	 	(p)	 	which, together with the Contract related thereto, has not been rewritten,
varied, waived or extended or otherwise been re-invoiced and has not otherwise had its
invoice date or due date changed; and
	 
	 	(q)	 	with respect to which all of the Borrower’s right, title and interest in such
Receivable or any Borrower Receivables Interest in respect thereof, in each case,
(together with the Related Security is subject to a first priority charge, security
interest or pledge under all applicable Law in favour of the Administrative Agent, on
behalf of the Secured Parties, free and clear of all Adverse Claims (other than
Permitted Adverse Claims); and
	 
	 	(r)	 	which is governed by the Laws of the jurisdiction under which the related
Originator is organised or by the Laws of another Approved Originator Jurisdiction
subject to the receipt by the Administrative Agent of documentation or other evidence
reasonably satisfactory to it that such Receivable will otherwise satisfy all of the
other requirements for an Eligible Receivable under this definition; and
	 
	 	(s)	 	with respect to which there exists no prohibition or restriction (whether under
the related Contract or applicable Law) on the disclosure of the related Contract or
any other information relating to such Receivable or the related Obligor or with
respect to which the consent of the related Obligor to such disclosure has been
obtained (provided that on or prior to the date falling 8 weeks after the Closing Date
this sub-clause (s) shall not apply to any Italian DPA Receivable to the extent the
relevant Receivable would otherwise satisfy this sub-clause (s) but for the fact that
the Italian Originator has not notified the applicable Obligor of the transfer of its
personal information); and
	 
	 	(t)	 	(i)      the Originator Sale Agreement under which such Receivable was sold to a
Purchaser is in full force and effect;

	 	(ii)	 	the Originator of such Receivable has not been terminated as a
“Seller” under the relevant Originator Sale Agreement; and
	 
	 	(iii)	 	the Seller Termination Date has not occurred with respect to
that Originator; and

17

 

	 	(u)	 	which is subject to the applicable Originator’s Standard Terms and Conditions,
unless the failure of such Receivable to be subject to such Standard Terms and
Conditions would not reasonably be expected to have a Material Adverse Effect; and
	 
	 	(v)	 	which complies with such other reasonable criteria and reasonable requirements
beginning six (6) Business Days from the date after receipt by the Servicer of written
notice from the Administrative Agent setting forth such additional reasonable criteria
and reasonable requirements following a detailed analysis of the Receivables and
discussion with the Servicer; and
	 
	 	(w)	 	with respect to which sufficient information in relation to the Obligor of such
Receivable must be capable of being disclosed to the Administrative Agent to enable it
to collect such Receivable after the occurrence of a Facility Event (provided that on
or prior to the date falling 8 weeks after the Closing Date this sub-clause (w) shall
not apply to any Italian DPA Receivable); or
	 
	 	(x)	 	any other Receivable approved in writing by the Administrative Agent.

	 	 	“EMU Legislation” means the legislative measures of the European Union for the introduction
of, changeover to or operation of the Euro in one or more member states of the European
Union.
	 
	 	 	“English Process Agent” means, with respect to any Person, the Person (if any) identified on
Schedule 1 (Address and Notice Information) as the “English Process Agent” for such Person.
	 
	 	 	“Equity Holder” means Structured Finance Management Corporate Services (Ireland) Limited.
	 
	 	 	“Equity Interests” of any Person means any and all shares of capital stock, partnership
interests, membership interests in a limited liability company, beneficial interests in a
trust or other equity ownership interests in a Person, and any warrants, options or other
rights entitling the holder thereof to purchase or acquire any such equity interest.
	 
	 	 	“EU Insolvency Regulation” means the Council of the European Union Regulation No. 1346/2000
on Insolvency Proceedings.
	 
	 	 	“Euro” means the lawful currency of the Participating Member States.
	 
	 	 	“Euro Equivalent” means, at any time in relation to an amount denominated in a currency
other than Euro, the Euro equivalent of such amount determined by reference to the Spot Rate
determined as of the most recent Exchange Rate Determination Date pursuant to Clause 2.16
(Conversion of currencies) of the Receivables Loan Agreement.
	 
	 	 	“Eurocurrency Loan” has the meaning specified in Clause 2.12 (Illegality) of the Receivables
Loan Agreement.
	 
	 	 	“Eurocurrency Rate” means, for any Loan for any Interest Period, the applicable FT Rate on
the first Business Day of the calendar month in which the first day of such

18

 

	 	 	Interest Period occurs. In the event that no FT Rate is available at such time for any
reason, then the “Eurocurrency Rate” shall be the arithmetic mean of the rates (rounded
upwards to four decimal places) as supplied to the Administrative Agent at its request
quoted by the Reference Banks to leading banks in the London interbank market at
approximately 11:00 a.m., London time, on the date of such request by the Administrative
Agent, for the offering of deposits in the currency of that Loan and for a period of one
month.
	 
	 	 	“Eurocurrency Rate Reserve Percentage” means, for any Interest Period in respect of which
Interest is computed by reference to the Eurocurrency Rate (a) in the case of a Loan
denominated in U.S. Dollars, the reserve percentage applicable two Business Days before the
first day of such Interest Period under regulations issued from time to time by the Board of
Governors of the U.S. Federal Reserve System (or any successor) (or if more than one such
percentage shall be applicable, the daily average of such percentages for those days in such
Interest Period during which any such percentage shall be so applicable) for determining the
maximum reserve requirement (including, without limitation, any emergency, supplemental or
other marginal reserve requirement) with respect to liabilities or assets consisting of or
including Eurocurrency Liabilities (or with respect to any other category of liabilities
that includes deposits by reference to which the interest rate on Eurocurrency Liabilities
is determined) having a term equal to such Interest Period and (b) with respect to a Loan
denominated in any currency (other than U.S. Dollars), any applicable Statutory Reserves
with respect to such currency.
	 
	 	 	“Event of Bankruptcy” means, with respect to any Person, the occurrence of any of the
following:

	 	(a)	 	such Person shall voluntarily commence any case, proceeding or
other action, or present a petition or make an application under any Insolvency
Law:

	 	(i)	 	relating to bankruptcy, insolvency, court
protection, reorganisation or relief of debtors, seeking to have an
order for relief entered with respect to it or seeking to adjudicate it
a bankrupt or insolvent, or seeking reorganisation, arrangement,
adjustment, winding-up, examination, liquidation, administration,
administrative receivership, dissolution, court protection,
composition, declaration or other similar relief with respect to it or
any of its debts; or
	 
	 	(ii)	 	seeking the appointment of a liquidator,
receiver, administrative receiver, examiner, security trustee,
custodian, compulsory manager, administrator or other similar official
for it or for all or any substantial part of its assets, other than in
connection with the solvent liquidation or reorganisation of such
Person so long as any payments or assets distributed as a result of
such liquidation or reorganisation are distributed to an Originator;

	 	(b)	 	there shall be commenced, presented or made against such Person
any case, proceeding or other action referred to in (a) above which is not

19

 

	 	 	 	dismissed by the relevant court, tribunal or authority within twenty-one
(21) days after its commencement;

	 	(c)	 	there shall be commenced against such Person any case,
proceeding or other action seeking issuance of a warrant of attachment,
sequestration, distress, expropriation, execution, distraint or similar process
against all or any substantial part of its assets which is not dismissed within
twenty-one (21) days after its commencement;
	 
	 	(d)	 	such Person ceasing or threatening to cease to carry on its
business or stopping payment or threatening to stop payment of its debts or
being, being deemed to be or becoming unable to pay its debts within the
meaning of Clause 214 of the Irish Companies Act, 1963 as amended or Clause
2(3) of the Irish Companies Amendment Act, 1990, (or as the case may be, any
analogous provision in any applicable jurisdiction, including section
123(1)(a), (b) or (c) of the Insolvency Act of 1986, as that section may be
amended from time to time) or otherwise unable to pay its debts as they fall
due or the value of its assets falling to less than the amount of its
liabilities (taking into account for both these purposes its contingent and
prospective liabilities) or such Person otherwise becoming insolvent;
	 
	 	(e)	 	in the case of the Borrower, the enforcement of any Adverse
Claim (other than any Permitted Adverse Claim); or
	 
	 	(f)	 	a moratorium is declared in respect of any of its debt.

	 	 	“Exchange Rate Determination Date” means (a) the last Business Day of each Calculation
Period, (b) the Business Day immediately preceding each Reporting Date, (c) the date of the
Daily Report in connection with which any Borrowing Request is delivered and (d) if a
Facility Event has occurred and is continuing hereunder, any Business Day designated as such
by the Administrative Agent in its sole discretion.
	 
	 	 	“Excluded Receivable” means (a) any Receivable that is a Restricted Receivable and with
respect to which the related Obligor has refused to consent or has not consented to the
assignment of such Restricted Receivable, (b) Receivables in respect of which the Obligor is
an Affiliate of any Transaction Party, (c) any Receivable which is a qualifying asset under
Section 110 of the Irish Taxes Consolidation Act 1997, (d) any Receivable in respect of
which Collections are paid into bank accounts located in the U.S. or are otherwise
administered by Dana Corporation or any of its Affiliates in the U.S., (e) any Receivable
which is governed by the Laws of a jurisdiction other than the jurisdiction under which the
related Originator is organised other than such a Receivable which satisfies the
requirements of paragraph (r) of the definition of Eligible Receivable, (f) any Receivable
of an Obligor whose customary practice is to prepay in full the principal amount of the
Receivables owing by it and which is not reported as a Receivable in any Daily Report, (g)
any Italian DPA Receivable that has not been assigned (or purported to have been assigned)
pursuant to an Italian RPA and in respect of which the Italian Originator has not on or
prior to the date falling 8 weeks after the Closing Date notified the applicable Obligor of
the transfer of such Obligor’s personal information in accordance with applicable Law, (h)
any Receivable created prior to the Closing Date, which is a Defaulted Receivable and
against which

20

 

	 	 	the relevant Originator has fully and specifically provided on its balance sheet and
financial statements, (i) any Receivable which is not denominated and payable in an Approved
Currency and (j) unless otherwise agreed by the Performance Undertaking Provider and the
Administrative Agent, any Receivable originated by an Italian Originator which is evidenced
or otherwise payable by chattel paper, a promissory note, a bill of exchange or other
instrument other than a cheque, wire transfer or similar method of payment.
	 
	 	 	“Excluded Taxes” means, with respect to the Administrative Agent, any Lender or any other
recipient of any payment to be made by or on account of any Transaction Party Obligation (a)
income taxes imposed on (or measured by) its net income or franchise taxes imposed on (or
measured by) its gross or net income by the jurisdiction under the laws of which such
recipient is organised or in which its principal office is located, or the jurisdiction in
which it is treated as resident for tax purposes or, in the case of any Lender, in which its
applicable lending office is located, in each case including any political subdivision
thereof, (b) any branch profits taxes imposed by any jurisdiction described in clause (a)
above, (c) any Tax to the extent such Tax is attributable to the Administrative Agent’s or
such Lender’s or other recipient’s failure to comply with Clause 2.15(e) (Indemnity for
Taxes) of the Receivables Loan Agreement or any similar provision of any other Transaction
Document, (d) with respect to any amount payable to the Administrative Agent or a Lender by
the Borrower pursuant to this Agreement, any Tax to the extent such Tax would not have
arisen had the Administrative Agent or Lender been or not ceased to be a Qualifying Lender
as of the date on which such payment is to be made, other than as a result of Change in Law
after the date on which the Administrative Agent or such Lender became a party hereto, or
(e) any Tax to the extent such Tax would not have arisen had there been no assignment or
transfer pursuant to Clause 10.3 (Assignability) of the Receivables Loan Agreement or change
in the office or offices through which such Lender or the Administrative Agent performs its
obligations under this Agreement, in each case, other than Tax arising as a result of Change
in Law after the date on which either the assignment or transfer occurred or the date on
which the Administrative Agent or such Lender changed the office or offices through which
the Administrative Agent or such Lender performs its obligations under this Agreement (as
applicable).
	 
	 	 	“Exercise Event” means with respect to (i) any Transaction Document, the occurrence of a
Facility Termination Event or Facility Suspension Event, and (ii) any Originator Sale
Agreement, in addition the occurrence of a Seller Termination Event or Seller Suspension
Event under such Originator Sale Agreement.
	 
	 	 	“Existing Austrian Collection Account” means any account set forth on Schedule 8 (Facility
Accounts and Account Banks) under the heading “Existing Austrian Collection Accounts”, as
such Schedule may be amended from time to time in accordance herewith.
	 
	 	 	“Existing Belgian Collection Account” means any account set forth on Schedule 8 (Facility
Accounts and Account Banks) under the heading “Existing Belgian Collection Accounts”, as
such Schedule may be amended from time to time in accordance herewith.

21

 

	 	 	“Existing Collection Accounts” means, as the context requires, all or any one of the
Existing Austrian Collection Accounts, Existing Belgian Collection Accounts, Existing French
Collection Accounts, Existing German Collection Accounts, Existing Italian Collection
Accounts or Existing Spanish Collection Accounts.
	 
	 	 	“Existing French Collection Account” means any account set forth on Schedule 8 (Facility
Accounts and Account Banks) under the heading “Existing French Collection Accounts”, as such
Schedule may be amended from time to time in accordance herewith.
	 
	 	 	“Existing German Collection Account” means any account set forth on Schedule 8 (Facility
Accounts and Account Banks) under the heading “Existing German Collection Accounts”, as such
Schedule may be amended from time to time in accordance herewith.
	 
	 	 	“Existing Italian Collection Account” means any account set forth on Schedule 8 (Facility
Accounts and Account Banks) under the heading “Existing Italian Collection Accounts”, as
such Schedule may be amended from time to time in accordance herewith.
	 
	 	 	“Existing Spanish Collection Account” means any account set forth on Schedule 8 (Facility
Accounts and Account Banks) hereto under the heading “Existing Spanish Collection Accounts”,
as such Schedule may be amended from time to time in accordance herewith.
	 
	 	 	“Facility Account” means, as the context requires, all or any one of the Collection Accounts
or the Borrower Operating Accounts.
	 
	 	 	“Facility Event” means a Facility Termination Event, Facility Suspension Event, Potential
Facility Termination Event or Potential Facility Suspension Event.
	 
	 	 	“Facility Limit” means €170,000,000.
	 
	 	 	“Facility Party” means any Transaction Party other than the Spanish Account SPV and the
Originators.
	 
	 	 	“Facility Suspension Event means each event or circumstance set out in Clause 7.1 (Facility
Suspension Events) of the Receivables Loan Agreement.
	 
	 	 	“Facility Termination Date” means the earliest of (a) the Scheduled Commitment Facility
Termination Date, (b) the date that the Facility Termination Date is declared or
automatically occurs pursuant to Clause 7.2 (Facility Termination Events) of the Receivables
Loan Agreement and (c) any date specified by the Performance Undertaking Provider on not
less than five (5) Business Days prior written notice to the Administrative Agent and each
Lender.
	 
	 	 	“Facility Termination Event” has the meaning specified in Clause 7.1 (Facility Termination
Events) of the Receivables Loan Agreement.
	 
	 	 	“Federal Funds Rate” means, for any period, a fluctuating interest rate per annum equal for
each day during such period to the weighted average of the rates on overnight U.S. Federal
funds transactions with members of the U.S. Federal Reserve

22

 

	 	 	System arranged by U.S. Federal funds brokers, as published for such day (or, if such day is
not a Business Day, for the next preceding Business Day) by the U.S. Federal Reserve Bank of
New York, or, if such rate is not so published for any day which is a Business Day, the
average of the quotations for such day on such transactions received by the Administrative
Agent from three U.S. Federal funds brokers of recognised standing selected by it.
	 
	 	 	“Fee Letters” means, collectively, the Administrative Agent Fee Letter, the Structuring
Agent Fee Letter and each Lender Fee Letter.
	 
	 	 	“Fees” means the fees payable pursuant to any Fee Letter.
	 
	 	 	“Final Payout Date” means the date after the Facility Termination Date on which all the
Transaction Party Obligations have been reduced to zero by payment in full in cash.
	 
	 	 	“Finance Charges” means, with respect to a Receivable, any finance, interest, late payment
or similar charges owing by an Obligor in respect of such Receivable.
	 
	 	 	“Financial Support Direction” means a financial support direction issued by tPR under
Section 43 of the Pensions Act.
	 
	 	 	“Fixed Charges” means, with respect to any period, the sum, determined on an aggregated
basis (excluding discontinued operations) for the Dana European Entities, the Borrower and
the Spanish Account SPV in accordance with Modified GAAP, of (a) Net Interest Expense, (b)
principal payments on indebtedness for borrowed money other than principal repayments under
(i) the Transaction Documents, (ii) any other revolving credit facility provided such
repayments are capable of being redrawn and (iii) any intercompany Indebtedness, and (c)
cash taxes paid relating to corporate or income tax for any Dana European Entity, the
Borrower or the Spanish Account SPV.
	 
	 	 	“Fixed Charges Coverage Ratio” means, at any time, determined on an aggregated basis for the
Dana European Entities, the Borrower and the Spanish Account SPV in accordance with Modified
GAAP, the ratio of (a) Adjusted EBITDA for the period for twelve consecutive calendar months
ending on, or most recently ended prior to, such time, minus Capital Expenditures for such
period to (b) Fixed Charges for such period.
	 
	 	 	“Foreign Lender” shall mean any Lender that is organised under the laws of a jurisdiction
other than that in which the Borrower is located.
	 
	 	 	“French Account Security Agreement” means any agreement designated as such in any French
RPA.
	 
	 	 	“French Bill of Exchange” means, with respect to any Receivable originated by any French
Originator, any lettre de change as defined by Clause L.511-1 of the French Commercial Code
that has been issued in respect of such Receivable (which for purposes of this definition
shall include any lettre de change relevé magnétique or virement commercial électronique)
and payable to the order of the Borrower or, in the case of any such Receivable that was
originated on or prior to the Bills of Exchange

23

 

	 	 	Redirection Date, payable to the order of such French Originator and endorsed or otherwise
redirected by the French Originator in favour of the Borrower.
	 
	 	 	“French Collection Account Bank” means any bank or other financial institution set forth on
Schedule 8 (Facility Accounts and Account Banks) under the heading “French Collection
Account Banks”, as such Schedule may be amended from time to time in accordance herewith.
	 
	 	 	“French Intermediate Transfer Agreement” means the French Intermediate Transfer Agreement,
dated on or about the Initial French Effective Date, among the Intermediate Transferor and
the Borrower.
	 
	 	 	“French Originators” means each entity designated as a “Seller” under a French RPA.
	 
	 	 	“French RPAs” means the receivables purchase agreements, dated on or about the Initial
French Effective Date, between (i) Thermal Products France S.A.S. and the Intermediate
Transferor and (ii) Spicer France S.A.R.L. and the Intermediate Transferor, and such
additional French law receivables purchase agreements as may be entered into from time to
time pursuant to Clause 10.12(b) (Limitation on the addition and termination of Originators)
of the Receivables Loan Agreement, for so long as such agreements remain in full force and
effect. “French RPA” means either of them.
	 
	 	 	“FT Rate” means, on any date, the rate published by the Financial Times (or any successor of
it) as the preceding Business Day’s London Inter Bank Offer Rate for deposits in the
currency of the relevant Loan and for a period of one month.
	 
	 	 	“Funding Percentage” in respect of each manufacturing plant of each Originator means the
percentage agreed between the Performance Undertaking Provider and the Administrative Agent
as the “Funding Percentage” set out in the form of Daily Report agreed between the
Performance Undertaking Provider and the Administrative Agent, which percentage as at the
Closing Date is as set out in the form of Daily Report attached as Exhibit A-1 (Form of
Daily Report) to the Servicing Agreement.
	 
	 	 	“GAAP” means, with respect to any Person, generally accepted accounting principles
applicable to such Person (including generally accepted accounting principles applicable to
such Person by Law) or the consolidated group of which such Person is a member (as the
context requires).
	 
	 	 	“GE” means GE Leveraged Loans Limited, in its individual capacity.
	 
	 	 	“German Account Security Agreement” means any agreement designated as such in any German
RPA.
	 
	 	 	“German Collection Account Bank” means any bank or other financial institution set forth on
Schedule 8 (Facility Accounts and Account Banks) under the heading “German Collection
Account Banks”, as such Schedule may be amended from time to time in accordance herewith.

24

 

	 	 	“German Originators” means each entity designated as a “Seller” under a German RPA.
	 
	 	 	“German RPAs” means the receivables purchase agreements, dated the Closing Date, between (i)
Reinz Dichtungs GmbH and the Borrower and (ii) Spicer Gelenkwellenbau GmbH and the Borrower,
and such additional German law receivables purchase agreements as may be entered into from
time to time pursuant to Clause 10.12(b) (Limitation on the addition and termination of
Originators) of the Receivables Loan Agreement, for so long as such agreements remain in
full force and effect. “German RPA” means either of them.
	 
	 	 	“Guarantee” of or by any Person (the “guarantor”) means any guarantee, letter of credit,
bond, indemnity or similar assurance against loss, or any obligation, direct or indirect,
actual or contingent, to purchase or assume any indebtedness of any person or to make an
investment in or loan to any person or to purchase assets of any person where, in each case,
such obligation is assumed in order to maintain or assist the ability of such person to meet
its indebtedness.
	 
	 	 	“HFM” means Hyperion Financial Management.
	 
	 	 	“Indebtedness” means any indebtedness for or in respect of (without duplication):

	 	(a)	 	monies borrowed;
	 
	 	(b)	 	any amount raised by acceptance under any acceptance credit facility or
dematerialised equivalent;
	 
	 	(c)	 	any amount raised pursuant to any note purchase facility or the issue of bonds,
notes, debentures, loan stock or any similar instrument;
	 
	 	(d)	 	the amount of any liability in respect of any Capitalised Lease Obligation;
	 
	 	(e)	 	receivables sold or discounted (other than any receivables to the extent they
are sold on a non-recourse basis);
	 
	 	(f)	 	any derivative transaction entered into in connection with protection against
or benefit from fluctuation in any rate or price (and, when calculating the value of
that derivative transaction, only the marked to market value as at the relevant date on
which Indebtedness is calculated (or, if any actual amount is due as a result of the
termination or close-out of that derivative transaction, that amount) shall be taken
into account);
	 
	 	(g)	 	any counter-indemnity obligation in respect of a guarantee, bond, standby or
documentary letter of credit or any other instrument issued by a bank or financial
institution;
	 
	 	(h)	 	any amount of any liability under an advance or deferred purchase agreement if
(a) one of the primary reasons behind entering into the agreement is to raise finance
or (b) the agreement is in respect of the supply of assets or services and payment is
due more than 180 days after the date of supply;

25

 

	 	(i)	 	any amount raised under any other transaction (including any forward sale or
purchase agreement) having the commercial effect of a borrowing;
	 
	 	(j)	 	all payment obligations in respect of securitisations; and
	 
	 	(k)	 	the amount of any liability in respect of any Guarantee for any of the items
referred to in paragraphs (a) to (j) above.

	 	 	“Indemnified Amounts” has the meaning specified in Clause 9 (Indemnities by the Borrower) of
the Receivables Loan Agreement.
	 
	 	 	“Indemnified Party” has the meaning specified in Clause 9 (Indemnities by the Borrower) of
the Receivables Loan Agreement.
	 
	 	 	“Indemnified Taxes” means Taxes other than Excluded Taxes.
	 
	 	 	“Initial Effective Date” means:

	 	(a)	 	in respect of the Austrian Originator, the Initial Austrian Effective Date;
	 
	 	(b)	 	in respect of the Belgian Originator, the Initial Belgian Effective Date;
	 
	 	(c)	 	in respect of the French Originator, the Initial French Effective Date;
	 
	 	(d)	 	in respect of the Italian Originator, the Initial Italian Effective Date;
	 
	 	(e)	 	in respect of the Spanish Originator, the Initial Spanish Effective Date;

	 	 	“Initial Austrian Effective Date” means the date agreed by the Borrower, the Intermediate
Transferor, the Austrian Originator, the Performance Undertaking Provider, the
Administrative Agent provided that such agreed date shall be a date falling after the day
upon which each of the conditions precedents set forth in Schedule 2 have been satisfied.
	 
	 	 	“Initial Belgian Effective Date” means the date agreed by the Borrower, the Belgian
Originator, the Performance Undertaking Provider, the Administrative Agent provided that
such agreed date shall be a date falling after the day upon which each of the conditions
precedents set forth in Schedule 3 have been satisfied.
	 
	 	 	“Initial French Effective Date” means the date agreed by the Borrower, the Intermediate
Transferor, the French Originators, the Performance Undertaking Provider, the Administrative
Agent provided that such agreed date shall be a date falling after the day upon which each
of the conditions precedents set forth in Schedule 4 have been satisfied.
	 
	 	 	“Initial Italian Effective Date” means the date agreed by the Borrower, the Intermediate
Transferor, the Italian Originators, the Performance Undertaking Provider, the
Administrative Agent provided that such agreed date shall be a date falling after the day
upon which each of the conditions precedents set forth in Schedule 5 have been satisfied.

26

 

	 	 	“Initial Spanish Effective Date” means the date agreed by the Borrower, the Spanish
Originator, the Performance Undertaking Provider, the Administrative Agent provided that
such agreed date shall be a date falling after the day upon which each of the conditions
precedents set forth in Schedule 6 have been satisfied.
	 
	 	 	“Initial Ratio Period” means the period commencing on the Closing Date and ending on the
fourth (4th) consecutive Ratio Reporting Date after the Closing Date.
	 
	 	 	“Insolvency Law” means any Law relating to bankruptcy, insolvency, administration,
receivership, examination, administrative receivership, reorganisation, winding up or
composition, moratorium or adjustment of debts or the rights of creditors generally (whether
by way of voluntary arrangement or otherwise).
	 
	 	 	“Interest” means, for any Loan and any Interest Period, the sum of:

	 	(a)	 	for each day during such Interest Period of the following:

	 	 	plus

	 	(b)	 	the Liquidation Fee, if any, for such Loan for such Interest Period

	 	 	where:

	 	IR = the Interest Rate for such Loan for such day;
	 
	 	PB = the Principal Balance of such Loan on such day;
	 
	 	Y = (a) in the case of a Loan denominated in Sterling, 365 or 366, as applicable,
and (b) in the case of any other Loan, 360 (or, in the event the practice of the
relevant interbank market differs, in accordance with such market practice); and

	 	 	provided, that no provision of the Receivables Loan Agreement shall require the payment or
permit the collection of Interest in excess of the maximum permitted by applicable Law; and
provided further that Interest for any Loan shall not be considered paid by any distribution
to the extent that at any time all or a portion of such distribution is rescinded or must
otherwise be returned for any reason.
	 
	 	 	“Interest Period” means, with respect to any Loan (a) initially the period commencing on
(and including) the applicable Borrowing Date and ending on (and excluding) the next
succeeding Intra-Month Settlement Date and (b) thereafter, each successive period commencing
on (but including) the last day of the immediately preceding Interest Period for such Loan
and ending on (and excluding) the next succeeding Intra-Month Settlement Date for such Loan;
provided, however, that:

	 	(i)	 	any Interest Period which would otherwise end on a day which is not a Business
Day shall be extended to the next succeeding Business Day (provided, however, that if
Interest in respect of such Interest Period is computed by reference to the Adjusted
Eurocurrency Rate, and such Interest

27

 

	 	 	 	Period would otherwise end on a day which is not a Business Day, and there is no
subsequent Business Day in the same calendar month as such day, such Interest Period
shall end on the next preceding Business Day);

	 	(ii)	 	in the case of any Interest Period of one day (A) if such Interest Period is
the initial Interest Period for a Loan, such Interest Period shall be the applicable
Borrowing Date, (B) any subsequently occurring Interest Period which is one day shall,
if the immediately preceding Interest Period is more than one day, be the last day of
such immediately preceding Interest Period and, if the immediately preceding Interest
Period is one day, be the day next following such immediately preceding Interest Period
and (C) if such Interest Period occurs on a day immediately preceding a day which is
not a Business Day, such Interest Period shall be extended to the next succeeding
Business Day; and
	 
	 	(iii)	 	in the case of any Interest Period for any Loan which commences before the
Facility Termination Date and would otherwise end on a date occurring after the
Facility Termination Date, such Interest Period shall end on the Facility Termination
Date and the duration of each Interest Period which commences on or after the Facility
Termination Date shall be as selected by the applicable Lender.

	 	 	“Interest Rate” means, with respect to any Loan for any day, the applicable Standard Rate;
provided that, and notwithstanding anything herein to the contrary, at all times that a
Facility Event has occurred and is continuing the Interest Rate for all Loans shall be an
interest rate per annum equal to the Default Rate.
	 
	 	 	“Intermediate Transfer Agreements” means the Austrian Intermediate Transfer Agreement, the
French Intermediate Transfer Agreement and the Italian Intermediate Transfer Agreement.
	 
	 	 	“Intermediate Transferor” means GE Factofrance SNC.
	 
	 	 	“Intra-Month Settlement Date” means Wednesday of each week, or if any such day is not a
Business Day, the next following Business Day.
	 
	 	 	“Ireland” means the island of Ireland excluding Northern Ireland.
	 
	 	 	“Italian Account Security Agreement” means any agreement designated as such in any Italian
RPA.
	 
	 	 	“Italian Civil Code” means the Italian Royal Decree (Region Decreto) no. 262, dated 16 March
1942.
	 
	 	 	“Italian Collection Account Bank” means any bank or other financial institution set forth on
Schedule 8 (Facility Accounts and Account Banks) under the heading “Italian Collection
Account Banks”, as such Schedule may be amended from time to time in accordance herewith.
	 
	 	 	“Italian DPA Receivable” means any Receivable originated by an Italian Originator in respect
of which pursuant to the Italian Legislative Decree no. 196 dated 30 June

28

 

	 	 	2003 and the Provvedimento of the Italian Data Protection Authority dated 18 January 2007
the Italian Originator is required to notify the Obligor of the transfer of such Obligor’s
personal information to the Borrower.
	 
	 	 	“Italian Intermediate Transfer Agreement” means the Italian Intermediate Transfer Agreement,
dated on or about the Initial Italian Effective Date, among the Intermediate Transferor and
the Borrower.
	 
	 	 	“Italian Originators” means each entity designated as a “Seller” under an Italian RPA.
	 
	 	 	“Italian RPA” means the receivables purchase agreement, dated on or about the Initial
Italian Effective Date, between Dana Italia S.p.A. and the Intermediate Transferor, and such
additional Italian law receivables purchase agreements as may be entered into from time to
time pursuant to Clause 10.12(b) (Limitation on the addition and termination of Originators)
of the Receivables Loan Agreement, for so long as such agreements remain in full force and
effect.
	 
	 	 	“Joint Venture” means any joint venture entity, whether a company, unincorporated firm,
undertaking, association, joint venture or partnership or any other entity.
	 
	 	 	“Law” means any law (including common law), constitution, statute, treaty, regulation, rule,
ordinance, order, injunction, writ, decree or award of any Official Body.
	 
	 	 	“Legal Opinion” means any legal opinion delivered to the Administrative Agent under Clause
3.1 (Conditions precedent to initial borrowing) of the Receivables Loan Agreement.
	 
	 	 	“Legal Reservations” means:

	 	(a)	 	the principle that equitable remedies may be granted or refused at the
discretion of a court and the limitation of enforcement by laws relating to insolvency,
reorganisation and other laws generally affecting the rights of creditors;
	 
	 	(b)	 	the time barring of claims under the Limitation Acts, the possibility that an
undertaking to assume liability for or indemnify a person against non-payment of UK
stamp duty may be void and defences of set-off or counterclaim; and
	 
	 	(c)	 	similar principles, rights and defences under the laws of any Relevant
Jurisdiction; and
	 
	 	(d)	 	any other matters which are set out as qualifications or reservations as to
matters of law of general application in the Legal Opinions.

	 	 	“Lender Fee Letter” has the meaning specified in Clause 2.4(b) (Interest and Fees) of the
Receivables Loan Agreement.
	 
	 	 	“Lenders” means, collectively, the Persons identified as “Lenders” on Schedule 1
(Commitments) of the Receivables Loan Agreement as amended from time to time.

29

 

	 	 	“Liquidation Fee” means for any Interest Period for which Interest is computed by reference
to the Eurocurrency Rate and a reduction of the Principal Balance of the relevant Loan is
made for any reason, in each case, on any day other than the last day of such Interest
Period, the amount, if any, by which (a) the additional Interest (calculated without taking
into account any Applicable Margin or any Liquidation Fee or any shortened duration of such
Interest Period) which would have accrued during such Interest Period on the reductions of
Principal Balance of the Loan relating to such Interest Period had such reductions not
occurred, exceeds (b) the income, if any, received by the Lender which holds such Loan from
the investment of the proceeds of such reductions of Principal Balance. A certificate as to
the amount of any Liquidation Fee (including the computation of such amount) shall be
submitted by the affected Lender to the Borrower and shall be conclusive and binding for all
purposes, absent manifest error.
	 
	 	 	“Loan” means a loan made to the Borrower pursuant to Clause 2 (Amounts and Terms of the
Loans) of the Receivables Loan Agreement.
	 
	 	 	“Local Currency” means any Approved Currency other than Euro.
	 
	 	 	“Mandatory Costs Rate” has the meaning specified in Schedule 3 (Mandatory Cost
Rate) of the Receivables Loan Agreement.
	 
	 	 	“Material Adverse Effect” means, with respect to any event or circumstance, a material
adverse effect, individually or in the aggregate with other events or circumstances, on: (a)
the business, financial condition, operations or assets of the Dana European Entities taken
as a whole; (b) the ability of any Transaction Party to perform any of its material
obligations under any Transaction Document to which it is a party; (c) the status,
existence, perfection or priority of the rights, title and interest of the Borrower, the
Intermediate Transferor, the Spanish Account SPV or any Secured Party in and to the Pool
Receivables, Collections or Related Security related thereto or any Facility Account or any
other Collateral; or (d) the validity, enforceability or collectibility (if applicable) of
all or any material portion of the Pool Receivables, Collections or Related Security related
thereto or any other Collateral.
	 
	 	 	“Material Indebtedness” means Indebtedness (other than the Loans or other Indebtedness
arising pursuant to and contemplated by the Transaction Documents and intercompany
indebtedness) of any one or more of the Dana European Entities, other than any Transaction
SPV, in an aggregate principal amount exceeding €5,000,000 and, with respect to any
Transaction SPV, in an aggregate principal amount exceeding €10,000.
	 
	 	 	“Material Subsidiary” means, with respect to any Person (herein referred to as the
“parent”), any corporation, limited company, partnership, association or other business
entity (a) of which securities or other ownership interests representing more than 95% of
the equity or more than 95% of the ordinary voting power or more than 95% of the general
partnership interests are, at the time any determination is being made, directly or
indirectly, owned, controlled or held and (b) that is, at the time any determination is
made, otherwise controlled (as defined in the definition of Affiliate), in each case of
clauses (a) and (b), by the parent or one or more Subsidiaries of the parent or by the
parent and one or more Subsidiaries of the parent.

30

 

	 	 	“Maturity Date” means the earlier of (a) the first Settlement Date that occurs six months
after the Facility Termination Date, and (b) the date on which the Loans become due and
payable pursuant to Clause 7.3 (Acceleration of maturity) of the Receivables Loan Agreement.
	 
	 	 	“Maximum Aggregate Principal Balance” means at any time any amount equal to the lesser of
(a) the Facility Limit, and (b)(i) the sum of the Net Eligible Funding Balance, multiplied
by (ii) the Applicable MAPB Percentage, less (iii) the Covenant Correction Amount.
	 
	 	 	“Modified GAAP” means GAAP as modified for the simple aggregation of balances among the
Borrower, the Spanish Account SPV, and the Dana European Entities.
	 
	 	 	“Monthly Ratio Report” means a report in the Agreed Form setting out the calculations of the
Dilution Ratio and Days Sales Outstanding duly completed and furnished by the Servicer
pursuant to Clause 2.3 (Reporting requirements) of the Servicing Agreement and containing
the certification of the Servicer.
	 
	 	 	“Monthly Settlement Date” means the second Business Day of each calendar month.
	 
	 	 	“Moody’s” means Moody’s Investors Service, Inc.
	 
	 	 	“moral hazard notice” means any of (a) a “warning notice” for the purposes of Section 96(2)
of the Pensions Act or (b) a “determination notice” for the purposes of Sections 96(2) or
98(2) of the Pensions Act, in respect of a proposal to issue a Contribution Notice or
Financial Support Direction for the purposes of Part 1 of the Pensions Act.
	 
	 	 	“Net Eligible Funding Balance” means at any time an amount equal to the aggregate of each
Net Individual Plant Funding Balance.
	 
	 	 	“Net Eligible Receivables Balance” means at any time an amount equal to (a) the aggregate
Outstanding Balance of Pool Receivables that qualify as Eligible Receivables at such time,
minus (b) the aggregate amount for all Obligors by which the Outstanding Balance of all of
the Pool Receivables that qualify as Eligible Receivables of each Obligor ((treating each
Obligor and its Affiliates as if they were a single Obligor) exceeds the Concentration Limit
for such Obligor at such time, minus (c) unapplied cash Collections of the Receivables (in
Euro or the Euro Equivalent) at such time, minus (d) the Euro Equivalent of the
Non-Effective Redirection Amount at such time, minus (e) the Set-Off Reduction at such time,
minus (f) the other specific reserves that are to be applied to the determination of the Net
Eligible Receivables Balance as set out in the form of Daily Report agreed between the
Performance Undertaking Provider and the Administrative Agent, which as at the Closing Date
is substantially in the form attached as Exhibit A-1 (Form of Daily Report) to the Servicing
Agreement.
	 
	 	 	“Net Income” means the aggregate earnings of the Dana European Entities, the Borrower and
the Spanish Account SPV as determined in accordance with Modified GAAP.

31

 

	 	 	“Net Individual Plant Funding Balance” means at any time for each manufacturing plant of
each Originator, the Net Eligible Receivables Balance (calculated on a manufacturing plant
by manufacturing plant basis) of the Pool Receivables that qualify as Eligible Receivables
at such time that have been generated by that manufacturing plant multiplied by the Funding
Percentage applicable to the Receivables that have been generated by such manufacturing
plant.
	 
	 	 	“Net Interest Expense” means, determined in accordance with Modified GAAP, (a) the aggregate
third party interest expense (calculated on an annualised basis where necessary) of the Dana
European Entities, the Borrower and the Spanish Account SPV minus (b) the aggregate third
party interest income (calculated on an annualised basis where necessary) of the Dana
European Entities, the Borrower and the Spanish Account SPV.
	 
	 	 	“New Austrian Collection Account” means any account set forth on Schedule 8 (Facility
Accounts and Account Banks) under the heading “New Austrian Collection Accounts”, as such
Schedule may be amended from time to time in accordance herewith.
	 
	 	 	“New Belgian Collection Account” means any account set forth on Schedule 8 (Facility
Accounts and Account Banks) under the heading “New Belgian Collection Accounts”, as such
Schedule may be amended from time to time in accordance herewith.
	 
	 	 	“New Collection Accounts” means, as the context requires, all or any one of the New Austrian
Collection Accounts, New Belgian Collection Accounts, New French Collection Accounts, New
German Collection Accounts, New Italian Collection Accounts or New Spanish Collection
Accounts.
	 
	 	 	“New French Collection Account” means any account set forth on Schedule 8 (Facility Accounts
and Account Banks) under the heading “New French Collection Accounts”, as such Schedule may
be amended from time to time in accordance herewith.
	 
	 	 	“New German Collection Account” means any account set forth on Schedule 8 (Facility Accounts
and Account Banks) under the heading “New German Collection Accounts”, as such Schedule may
be amended from time to time herewith.
	 
	 	 	“New Italian Collection Account” means any account set forth on Schedule 8 (Facility
Accounts and Account Banks) under the heading “New Italian Collection Accounts”, as such
Schedule may be amended from time to time in accordance herewith.
	 
	 	 	“New Spanish Collection Account” means any account set forth on Schedule 8 (Facility
Accounts and Account Banks) under the heading “New Spanish Collection Accounts”, as such
Schedule may be amended from time to time in accordance herewith.
	 
	 	 	“Non-Effective Redirection Amount” means, as of any Ratio Reporting Date and continuing
until (but not including) the next Ratio Reporting Date, an amount equal to the product of
(a) the Effective Redirection Target Percentage applicable to such

32

 

	 	 	earlier Ratio Reporting Date minus the Effective Redirection Percentage as of such earlier
Ratio Reporting Date (provided that such percentage shall not be less than zero), times (b)
the aggregate Outstanding Balance (as of the last day of such Calculation Period) of Pool
Receivables.
	 
	 	 	“Obligations” means, collectively, all covenants, agreements, terms, conditions, deemed
collection undertakings, indemnities and other obligations of whatever nature to be
performed and observed by each Performance Party under the Transaction Documents to which it
is a party, whether monetary or non-monetary.
	 
	 	 	“Obligor” means, with respect to any Receivable, each Person obligated to make payments in
respect of such Receivable pursuant to a Contract.
	 
	 	 	“Official Body” means any government or political subdivision or any agency, authority,
bureau, central bank, commission, department or instrumentality of any such government or
political subdivision, or any court, tribunal, grand jury or arbitrator, or any agency,
authority, instrumentality, regulatory body, court, central bank or other entity exercising
executive, legislative, judicial, taxing, regulatory or administrative powers or functions
of or pertaining to government, or any accounting board or authority (whether or not a part
of government) which is responsible for the establishment or interpretation of national or
international accounting principles.
	 
	 	 	“Organic Documents” of any Person means its memorandum and articles of association, articles
or certificate of incorporation and by laws, limited liability agreement, partnership
agreement or other comparable charter or organisational documents as amended from time to
time.
	 
	 	 	“Originators” means any of the Austrian Originators, the Belgian Originators, the French
Originators, the German Originators, the Italian Originators and the Spanish Originators.
	 
	 	 	“Originator Sale Agreement” means any of the Austrian RPAs, the Belgian RPAs, the French
RPAs, the German RPAs, the Italian RPAs or the Spanish RPAs.
	 
	 	 	“Other Permitted Deposits” means, with respect to any Existing Collection Account, any
deposit made to such account in respect of amounts payable to the related Originator, in
each case, where (i) such deposit is made prior to the day falling 90 days after the Closing
Date, and (ii) the payor of such amount was instructed to deposit such payment to such
Existing Collection Account, or the relevant arrangements for such payment to be deposited
in such Existing Collection Account was established, prior to the Closing Date. It is
understood and agreed that the relevant Originators will take reasonable steps to ensure
that any such payor is instructed to make payments to a non-Facility Account (including by
modifying any such arrangements) as soon as possible after the Closing Date.
	 
	 	 	“Other Permitted Payments” means, with respect to any Existing Collection Account, any
payment or debit from such Existing Collection Account in respect of an amount payable by
the related Originator that was made (which for purposes of payments by cheque means the
date on which the cheque was written) prior to the date falling 90 days after the Closing
Date (with respect to any payment made by cheque, regardless of when such cheque is
presented to the relevant bank or financial

33

 

	 	 	institution for payment). It is understood and agreed that the relevant Originators will
take reasonable steps to ensure that any such payment or debit is made from a non-Facility
Account as soon as possible after the Closing Date.
	 
	 	 	“Outstanding Balance” means, with respect to any Receivable at any time, the then
outstanding principal amount thereof (in Euro or the Euro Equivalent), excluding any Finance
Charges related thereto.
	 
	 	 	“Participant” has the meaning specified in Clause 10.3(e) (Participations) of the
Receivables Loan Agreement.
	 
	 	 	“Participating Member States” means any member state of the European Community that adopts
or has adopted the Euro as its lawful currency in accordance with legislation of the
European Community relating to Economic and Monetary Union.
	 
	 	 	“Pensions Act” means the United Kingdom Pensions Act 2004.
	 
	 	 	“Performance Undertaking” means the Performance and Indemnity Deed, dated the Closing Date,
issued by the Performance Undertaking Provider in favour of, among others, the Borrower, the
Administrative Agent and the Secured Parties.
	 
	 	 	“Performance Undertaking Provider” means Dana International Luxembourg SARL.
	 
	 	 	“Performance Parties” means (i) each of the Originators, (ii) each of the Servicer Parties
that is an Affiliate or direct or indirect Subsidiary of the Performance Undertaking
Provider, (iii) the Spanish Account SPV and (iv) the Subordinated Lender, in each case, in
any capacity in which it is a party to any Transaction Document.
	 
	 	 	“Permitted Acquisition” means an acquisition on an arm’s length basis of (A) all or any part
of the Equity Interests of a person or (B) a business or undertaking carried on as a going
concern, but only if:

	 	(a)	 	no Facility Event is continuing on the closing date for the acquisition or
would occur as a result of the acquisition; and
	 
	 	(b)	 	the consideration (including associated costs and expenses) for the acquisition
(when aggregated with the consideration (including associated costs and expenses) for
any other Permitted Acquisition (the “Total Purchase Price”) together with the amount
of any Joint Venture Investment in respect of Permitted Joint Ventures in that rolling
twelve (12) month period), in each case paid or otherwise contributed by the Dana
European Legal Group, does not in any rolling twelve (12) month period exceed
€5,000,000 (or equivalent currency).

	 	 	“Permitted Adverse Claim” means any Adverse Claim (a) created under the Security Documents
or the other Transaction Documents, (b) in respect of taxes, assessments or other
governmental charges or levies not yet due and payable or, in the case of any Transaction
Party (other than a Transaction SPV), the validity of which

34

 

	 	 	are being contested by such Transaction Party in good faith by appropriate proceedings and
with respect to which appropriate reserves have been established in conformity with GAAP by
such Transaction Party, (c) in respect of any Receivable which will be released on, or prior
to the sale or transfer (or purported sale or transfer) of such Receivable under an
Originator Sale Agreement, and (d) with respect to any Facility Account, any Adverse Claim
of the bank or other financial institution at which such Facility Account is maintained and
that arose in the ordinary course of business between the relevant account holder and such
bank or other financial institution.

	 	 	“Permitted Disposal” means any disposal which (except in the case of paragraph (b)) is on
arm’s length terms:

	 	(a)	 	of trading stock or cash made by any Dana European Entity in the ordinary
course of trading of the disposing Person;
	 
	 	(b)	 	of any asset by a member of the Dana European Legal Group to a member of the
Dana European Legal Group;
	 
	 	(c)	 	of any asset by a Dana European Entity to a member of the Dana European Legal
Group;
	 
	 	(d)	 	of assets in exchange for other assets comparable or superior as to type, value
or quality, provided that if the Performance Undertaking Provider has disposed of any
Equity Interests of any Dana European Entity that it holds in exchange for cash, the
Performance Undertaking Provider shall not make any Permitted Transaction Payment in
respect of such cash to any Person other than a Dana European Entity to the extent that
the sum of the aggregate principal amount of all Permitted Transaction Payments to any
Person other than a Dana European Entity plus the aggregate principal amount of all
loans made by the Performance Undertaking Provider or any Dana European Entity to the
Performance Undertaking Provider or any of its Affiliates who are not members of the
Dana European Legal Group plus the aggregate amount of all dividends made by a Dana
European Entity to its direct parent company who is either the Performance Undertaking
Provider or not a Dana European Entity (other than those dividends described in
paragraph (b) of the definition of Permitted Distributions) plus the aggregate amount
of all dividends described under paragraph (b)(ii) of the definition of Permitted
Distributions shall not in any financial year of the Performance Undertaking Provider
exceed the greater of (A) €10,000,000 (or the equivalent in any other currency) and (B)
90% of the aggregate distributable earnings of the Dana European Entities generated on
or after 1 January 2007;
	 
	 	(e)	 	of obsolete, worn-out or redundant assets or property for cash;
	 
	 	(f)	 	sales for cash of assets or property no longer used or useful;
	 
	 	(g)	 	sales, transfers or other dispositions of assets in connection with the Tooling
Programme;

35

 

	 	(h)	 	any sale, lease, transfer or other disposition made in connection with any
investment in any member of the Dana European Legal Group;
	 
	 	(i)	 	licences, sublicences or similar transactions of intellectual property in the
ordinary course of business and the abandonment of intellectual property deemed no
longer useful;
	 
	 	(j)	 	equity issuances by any Dana European Entity to a member of the Dana European
Legal Group;
	 
	 	(k)	 	transfers of receivables and receivables related assets or any interest therein
pursuant to the Transaction Documents and the transactions contemplated thereby;
	 
	 	(l)	 	of cash equivalents for cash or in exchange for other cash equivalents;
	 
	 	(m)	 	arising as a result of any Permitted Encumbrances or Permitted Transactions;
	 
	 	(n)	 	described on Schedule 10 (Permitted Disposals) hereto;
	 
	 	(o)	 	not otherwise permitted by the preceding paragraphs provided that the aggregate
book value of all assets disposed of in reliance on this paragraph shall not exceed
€10,000,000 (or equivalent currency) in any financial year of the Performance
Undertaking Provider; and
	 
	 	(p)	 	which has been approved in writing by the Administrative Agent.

	 	 	“Permitted Distributions” means:

	 	(a)	 	the making of a dividend to its direct parent company who is a Dana European
Entity (excluding the Performance Undertaking Provider);
	 
	 	(b)	 	the making of a dividend (other than in respect of a dividend or distribution
received directly or indirectly from a Person that is not a Dana European Entity and
from whom that dividend or distribution initially originated) to its direct parent
company who is not a Dana European Entity provided that such direct parent company
shall promptly (and in any event within five (5) Business Days) make a dividend in
respect of the dividend which it received to its own direct parent company who is (i) a
Dana European Entity (other than the Performance Undertaking Provider) or (ii) subject
to the proviso in the last paragraph of this definition, the Performance Undertaking
Provider;
	 
	 	(c)	 	subject to the proviso in the last paragraph of this definition, the making of
a dividend to its direct parent company who is either the Performance Undertaking
Provider or not a Dana European Entity;
	 
	 	(d)	 	the payment of royalties and management fees in the manner, at the times and
calculated on a comparable basis consistent with such Dana European Entity’s past
business practices;
	 
	 	(e)	 	the making of a dividend or other distribution as described in Schedule 11
(Repatriation Plan);

36

 

	 	(f)	 	the making of a dividend or distribution as part of a Permitted Transaction;
	 
	 	(g)	 	the making of a dividend to its direct parent company who is either the
Performance Undertaking Provider or not a Dana European Entity in respect of dividends
or distributions received directly or indirectly from a Person that is not a Dana
European Entity and from whom that dividend or distribution initially originated; and
	 
	 	(h)	 	the making of a dividend which has been approved in writing by the
Administrative Agent,

	 	 	provided that the aggregate principal amount of distributions described under paragraphs
(b)(ii) and (c) of this definition shall not exceed 90% of the aggregate distributable
earnings of the Dana European Entities and (ii) the sum of the aggregate principal amount of
such distributions plus the aggregate principal amount of all loans made by the Performance
Undertaking Provider or any Dana European Entity to the Performance Undertaking Provider or
its Affiliates who are not members of the Dana European Legal Group plus the aggregate
amount of any Permitted Transaction Payments made to any Person other than a Dana European
Entity does not exceed in any financial year of the Performance Undertaking Provider the
greater of (A) €10,000,000 (or equivalent currency) and (B) 90% of the aggregate
distributable earnings of the Dana European Entities generated on or after 1 January 2007
	 
	 	 	“Permitted Encumbrance” means:

	 	(a)	 	any lien arising by operation of law and in the ordinary course of trading and
not as a result of any default or omission by any Dana European Entity;
	 
	 	(b)	 	any netting or set-off arrangement entered into by any Dana European Entity in
the ordinary course of its banking arrangements for the purpose of netting debit and
credit balances of the Dana European Entities;
	 
	 	(c)	 	any Adverse Claim over or affecting any asset acquired by a Dana European
Entity after the Closing Date if:

	 	(i)	 	the Adverse Claim was not created in contemplation of the
acquisition of that asset by a Dana European Entity;
	 
	 	(ii)	 	the principal amount secured has not been increased in
contemplation of or since the acquisition of that asset by a Dana European
Entity; and
	 
	 	(iii)	 	the Adverse Claim is removed or discharged within three (3)
months of the date of acquisition of such asset;

	 	(d)	 	any Adverse Claim over or affecting any asset of any company which becomes a
Dana European Entity after the Closing Date, where the Adverse Claim is created prior
to the date on which that company becomes a member of the Group if:

	 	(i)	 	the Adverse Claim was not created in contemplation of the
acquisition of that company;

37

 

	 	(ii)	 	the principal amount secured has not increased in contemplation
of or since the acquisition of that company; and
	 
	 	(iii)	 	the Adverse Claim is removed or discharged within three (3)
months of that company becoming a Dana European Entity;

	 	(e)	 	any Adverse Claim arising under any retention of title, hire purchase or
conditional sale arrangement or arrangements having similar effect in respect of goods
supplied to a Dana European Entity in the ordinary course of trading and on the
supplier’s standard or usual terms and not arising as a result of any default or
omission by any Dana European Entity;
	 
	 	(f)	 	any Adverse Claim arising as a result of a disposal which is a Permitted
Disposal;
	 
	 	(g)	 	any Adverse Claim in respect of Indebtedness permitted pursuant to paragraph
(j) of the definition of Permitted Indebtedness;
	 
	 	(h)	 	any Adverse Claim existing as at the Closing Date in respect of Indebtedness
permitted pursuant to paragraph (b) of the definition of Permitted Indebtedness and
listed on Schedule 12 (Permitted Indebtedness); and
	 
	 	(i)	 	any Adverse Claim which has been approved in writing by the Administrative
Agent.

	 	 	“Permitted Guarantee” means:

	 	(a)	 	the endorsement of negotiable instruments in the ordinary course of trade;
	 
	 	(b)	 	any performance or similar bond guaranteeing performance by a Dana European
Entity under any contract entered into in the ordinary course of trade;
	 
	 	(c)	 	any guarantee constituting Permitted Indebtedness (except under paragraph (c)
of that definition);
	 
	 	(d)	 	any guarantee given in respect of the netting or set-off arrangements permitted
pursuant to paragraph (b) of the definition of Permitted Encumbrance; and
	 
	 	(e)	 	any guarantee which has been approved in writing by the Administrative Agent.

	 	 	“Permitted Indebtedness” means Indebtedness:

	 	(a)	 	arising under any of the Transaction Documents;
	 
	 	(b)	 	in existence or committed at the Closing Date and listed on Schedule 12
(Permitted Indebtedness) hereto including any replacement or successor Indebtedness in
an amount not exceeding the principal or committed amount of the original Indebtedness;

38

 

	 	(c)	 	arising under or in respect of a Permitted Loan or a Permitted Guarantee or an
investment in a member of the Dana European Legal Group;
	 
	 	(d)	 	in respect of letter of credit facilities to be made available to the Dana
European Entities in an aggregate face amount not to exceed €30,000,000 (or equivalent
currency);
	 
	 	(e)	 	arising under a foreign exchange transaction for spot or forward delivery
entered into in connection with protection against fluctuation in currency rates where
that foreign exchange exposure arises in the ordinary course of trade or in respect of
Borrowings made in Approved Currencies, but not a foreign exchange transaction for
investment or speculative purposes;
	 
	 	(f)	 	arising from the honouring by a bank or other financial institution of a
cheque, draft or similar instrument inadvertently drawn against insufficient funds in
the ordinary course of business; provided, however, that such Indebtedness is
extinguished within five (5) Business Days of incurrence thereof;
	 
	 	(g)	 	of a person existing at the time such person is acquired by or merged with or
into or consolidated with any Dana European Entity or is assumed in connection with the
acquisition of assets from such person, but not incurred or increased or its maturity
date extended in contemplation thereof, or since that acquisition and outstanding only
for a period of three (3) months following the date of acquisition;
	 
	 	(h)	 	constituting trade payables and incurred in the ordinary course of business
(including open accounts extended by suppliers on normal trade terms in connection with
purchases of goods and services);
	 
	 	(i)	 	payables owing to suppliers in connection with the Tooling Programme;
	 
	 	(j)	 	which is secured, including under finance or capital leases, in an aggregate
principal amount at any time not to exceed €50,000,000 (or equivalent currency);
	 
	 	(k)	 	which is unsecured, not permitted by the preceding paragraphs and is in an
aggregate principal amount at any time not to exceed €40,000,000 (or equivalent
currency);
	 
	 	(l)	 	not permitted by the preceding paragraphs provided that prior to incurring, or
concurrently with the incurrence of, any such Indebtedness the Performance Undertaking
Provider shall deliver to the Administrative Agent a certificate signed by a
Responsible Officer of the Performance Undertaking Provider with calculations showing
in reasonable detail that the Performance Undertaking Provider will remain in
compliance with its obligations under Clause 10.3 (Financial covenant) of the
Performance Undertaking if the covenant tests were to be calculated on the basis of
projections for the relevant period ending on the first Testing Date to occur twelve
(12) months after the date of such calculation incorporating the contemplated
Indebtedness therein on a pro forma basis and as if such Indebtedness had been incurred
at the start of the relevant period;

39

 

	 	(m)	 	arising under an overdraft facility granted by a bank or other financial
institution in the ordinary course of business, provided that such Indebtedness is
extinguished by close of business on the same Business Day on which it arose; and
	 
	 	(n)	 	which has been approved in writing by the Administrative Agent,

	 	 	provided that Permitted Indebtedness of a Transaction Party shall not include any
Indebtedness owing to any Collection Account Bank other than fees and other transactional
expenses incurred in connection with the operation of the Facility Accounts maintained with
that Collection Account Bank and any Indebtedness constituting Permitted Indebtedness under
paragraph (m) of this definition except where the Administrative Agent has received a waiver
(in form and substance satisfactory to the Administrative Agent) from the relevant
Collection Account Bank in respect of any banker’s lien or other right of set-off over the
relevant Facility Accounts.
	 
	 	 	“Permitted Investments” means, with respect to any Borrower Operating Account, any of the
following investments denominated and payable solely in the Approved Currency for which such
Borrower Operating Account is maintained: (a) readily marketable debt securities issued by,
or the full and timely payment of which is guaranteed by the full faith and credit of, the
central government of any Approved Originator Jurisdiction, (b) insured demand deposits,
time deposits and certificates of deposit of any Eligible Account Bank that is organised
under the laws of an Approved Originator Jurisdiction, (c) repurchase obligations with a
term of not more than 45 days for underlying securities of the types described in clause (a)
above entered into with a bank meeting the qualifications described in clause (b) above, (d)
money market funds rated in the highest ratings category by each of Moody’s and S&P (which
rating, in the case of S&P, shall be AAAm or AAAmg and shall not have the “r” symbol
attached to such rating and, in the case of Moody’s “P-1” or “Aaa” and “MR1+”), (e)
commercial paper of any corporation incorporated under the laws of an Approved Originator
Jurisdiction or any political subdivision thereof, provided that such commercial paper is
rated at least A-1 (and without any “r” symbol attached to any such rating) by S&P and at
least Prime-1 by Moody’s, and (f) cash; provided that in each case such investments shall be
a qualifying asset within the meaning of Section 110 of the Irish Taxes Consolidation Act
1997.
	 
	 	 	“Permitted Joint Venture” means any investment in any Joint Venture where in any rolling
twelve (12) month period the aggregate (“Joint Venture Investment”) of all amounts
subscribed for shares in, or invested in all such Joint Ventures by any Dana European Entity
in respect of such investment when aggregated with the Total Purchase Price in respect of
Permitted Acquisitions in that rolling twelve (12) month period permitted pursuant to
paragraph (c) of the definition of Permitted Acquisition, in each case paid or otherwise
contributed by the Dana European Legal Group, does not exceed €5,000,000 (or equivalent
currency).
	 
	 	 	“Permitted Loans” means:

	 	(a)	 	any trade credit extended to customers on normal commercial terms and in the
ordinary course of its trading activities;

40

 

	 	(b)	 	any loan constituting Permitted Indebtedness (except under paragraph (c) of
that definition);
	 
	 	(c)	 	any loan to a member of the Dana European Legal Group (excluding the
Performance Undertaking Provider);
	 
	 	(d)	 	any loan to the Performance Undertaking Provider or any of its Affiliates who
are not members of the Dana European Legal Group provided that (i) the aggregate
principal amount of such loans shall not exceed €10,000,000 (or the equivalent in any
other currency) in any financial year of the Performance Undertaking Provider and (ii)
the sum of the aggregate principal amount of such loans plus the aggregate amount of
all dividends made by a Dana European Entity to its direct parent company who is either
the Performance Undertaking Provider or not a Dana European Entity (other than those
dividends described in paragraph (b) of the definition of Permitted Distributions) plus
the aggregate amount of all dividends described under paragraph (b)(ii) of the
definition of Permitted Distributions plus the aggregate amount of any Permitted
Transaction Payments made to a Person other than a Dana European Entity does not exceed
in any financial year of the Performance Undertaking Provider the greater of (A)
€10,000,000 (or the equivalent in any other currency) and (B) 90% of the aggregate
distributable earnings of the Dana European Entities generated on or after 1 January
2007.
	 
	 	(e)	 	a loan to an employee or director of any Dana European Entity provided that the
aggregate amount of all such loans shall not exceed €1,000,000 (or equivalent currency)
from time to time;
	 
	 	(f)	 	loans described on Schedule 13 (Permitted Loans) hereto;
	 
	 	(g)	 	Permitted Guarantees;
	 
	 	(h)	 	any loan arising under the Intra-Group Consolidated Payment System Agreement
dated 27 October 2003 between Dana Corporation, Echlin Europe Limited, Dana SAS, Dana
Automocion S.A., Dana Europe Holding B.V., Dana Italia S.p.A. and others provided that
the aggregate of all such loans shall not exceed €12,000,000 (or equivalent currency)
from time to time;
	 
	 	(i)	 	any loan to a Spanish Originator (whilst such Spanish Originator is not a
member of the Dana European Legal Group) extended for working capital purposes in the
ordinary course of its trading activities and for capital expenditures budgeted for in
the latest annual budget of the relevant Spanish Originator provided to the
Administrative Agent, provided that any such loans extended for the purposes of capital
expenditure shall not exceed an aggregate principal amount of €8,000,000 (or equivalent
currency) per annum;
	 
	 	(j)	 	other loans or guarantees not exceeding an aggregate principal amount of
€1,000,000 (or equivalent currency) from time to time; and
	 
	 	(k)	 	loans, guarantees and the granting of credit which have been approved in
writing by the Administrative Agent.

41

 

	 	 	“Permitted Transaction” means:

	 	(a)	 	a Permitted Acquisition;
	 
	 	(b)	 	a Permitted Joint Venture;
	 
	 	(c)	 	the solvent liquidation or reorganisation of any member of the Dana European
Legal Group which is not a Transaction Party so long as any payments or assets
distributed as a result of such liquidation or reorganisation are distributed to other
members of the Dana European Legal Group, provided that the sum of the aggregate amount
of any Permitted Transaction Payments made by the Performance Undertaking Provider to
any Person other than a Dana European Entity plus the aggregate principal amount of all
loans made by the Performance Undertaking Provider or any Dana European Entity to the
Performance Undertaking Provider or any of its Affiliates who are not members of the
Dana European Legal Group plus the aggregate amount of all dividends made by a Dana
European Entity to its direct parent company who is either the Performance Undertaking
provider or not a Dana European Entity (other than those dividends described in
paragraph (b) of the definition of Permitted Distributions) plus the aggregate amount
of all dividends described under paragraph (b)(ii) of the definition of Permitted
Distributions shall not exceed in any financial year of the Performance Undertaking
Provider the greater of (A) €10,000,000 (or the equivalent in any other currency) and
(B) 90% of the aggregate distributable earnings of the Dana European Entities generated
on or after 1 January 2007;
	 
	 	(d)	 	any transaction, investment or acquisition described on Schedule 14 (Permitted
Transactions) hereto; and
	 
	 	(e)	 	any transaction which has been approved in writing by the Administrative Agent.

	 	 	“Permitted Transaction Payment” means any payment, distribution (by way of dividend or
otherwise) or other application by the Performance Undertaking Provider of (a) any proceeds
distributed to the Performance Undertaking Provider from a solvent liquidation or
reorganisation of any member of the Dana European Legal Group which is not a Transaction
Party, and (b) any cash received by the Performance Undertaking Provider in exchange for the
disposal of any Equity Interest that it holds in any Dana European Entity.
	 
	 	 	“Person” means an individual, partnership, corporation (including a business trust), limited
liability company, joint stock company, trust, unincorporated association, joint venture,
Official Body or any other entity.
	 
	 	 	“Pool Receivable” means any Receivable (i) which has been sold and/or otherwise assigned (or
purported to be sold) and or otherwise assigned) by an Originator to a Purchaser pursuant to
an Originator Sale Agreement, and (ii) if such Purchaser is other than the Borrower, which
has been sold or otherwise transferred by such Purchaser to the Borrower, or in which such
Purchaser has granted or otherwise sold a Borrower Receivables Interest to the Borrower, in
each case, pursuant to an Intermediate Transfer Agreement.

42

 

	 	 	“Portfolio Report” means any Daily Report.
	 
	 	 	“Potential Facility Suspension Event” means an event or circumstance which would (with the
expiry of a grace period, the giving of notice, the making of any determination under the
Transaction Documents or any combination of the foregoing) be a Facility Suspension Event.
	 
	 	 	“Potential Facility Termination Event” means an event or circumstance which would (with the
expiry of a grace period, the giving of notice, the making of any determination under the
Transaction Documents or any combination of the foregoing) be a Facility Termination Event.
	 
	 	 	“Potential Seller Suspension Event” means an event or circumstance which would (with the
expiry of a grace period, the giving of notice, the making of any determination under the
Transaction Documents or any combination of the foregoing) be a Seller Suspension Event.
	 
	 	 	“Potential Seller Termination Event” means an event or circumstance which would (with the
expiry of a grace period, the giving of notice, the making of any determination under the
Transaction Documents or any combination of the foregoing) be a Seller Termination Event.
	 
	 	 	“Potential Servicer Default” means an event or circumstance which would (with the expiry of
a grace period, the giving of notice, the making of any determination under the Transaction
Documents or any combination of the foregoing) be a Servicer Default.
	 
	 	 	“Principal Balance” means, with respect to any Loan, the principal amount outstanding of
such Loan made hereunder, as such amount may be consolidated with the principal amount of
any other Loan in accordance with Clause 2.10 (Consolidation), in each case as reduced from
time to time by amount paid to the applicable Lender(s) holding such Loan pursuant to Clause
2.6 (Application of Collections prior to Facility Termination Date) or Clause 2.7
(Application of Collections after Facility Termination Date) of the Receivables Loan
Agreement, as applicable, on account of the Principal Balance of such Loan; provided that if
such Principal Balance shall have been reduced by any distribution and thereafter all or a
portion of such distribution is rescinded or must otherwise be returned for any reason, such
Principal Balance shall be increased by the amount of such rescinded or returned
distribution, as though it had not been received by such Lender(s).
	 
	 	 	“Pro Rata Share” means, with respect to any Lender (a) the Commitment of such Lender,
divided by the sum of the Commitments of all Lenders and (b) after the Commitments of all
the Lenders have been terminated, the outstanding principal amount (in Euro or the Euro
Equivalent) of the Loans funded by such Lender, divided by the outstanding principal amount
(in Euro or the Euro Equivalent) of the Loans funded by all the Lenders.
	 
	 	 	“Purchaser” means the Borrower or the Intermediate Transferor.

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	 	 	“Qualifying Lender” means any Lender which is beneficially entitled to interest payable to
that Lender in respect of an advance under a Transaction Document and is:

	 	(a)	 	which is licensed, pursuant to Clause 9 of the Irish Central Bank Act, 1971, to
carry on banking business in Ireland and whose facility office is located in Ireland
and which is carrying on a bona fide banking business in Ireland for the purposes of
Clause 246(3) of the Irish Taxes Consolidation Act, 1997; or
	 
	 	(b)	 	which is an authorised credit institution under the terms of the European Union
Consolidation Directive (formerly the First European Union Banking Co-Ordination
Directive and the Second European Union Banking Co-Ordination Directive) and has duly
established a branch in Ireland or has made all necessary notifications to its home
state competent authorities required thereunder in relation to its intention to carry
on banking business in Ireland and such financial institution is recognised by the
Revenue Commissioners in Ireland as carrying on a bona fide banking business in Ireland
for the purposes of Clause 246(3) of the Irish Taxes Consolidation Act, 1997 and has
its facility office located in Ireland; or
	 
	 	(c)	 	which is a Person resident in and under the laws of a country with which
Ireland has a double taxation treaty or resident in a member state of the European
Communities (other than Ireland) (provided, that such Lender does not provide its
commitment through a branch or agency in Ireland), including a corporation incorporated
in the U.S. and subject to U.S. tax on its worldwide income and a U.S. limited
liability company (provided the ultimate recipients of the interest through the limited
liability company are persons resident in a member state of the European Union (other
than Ireland) or resident in a country with which Ireland has a double taxation treaty
and the business is conducted through the limited liability company for market reasons
rather than tax avoidance purposes) in either case not providing its commitment through
a branch or agency in Ireland; or
	 
	 	(d)	 	which is a body corporate which advances money in the ordinary course of a
trade which includes the lending of money; provided, that the interest is paid in
Ireland, the interest is taken into account in computing the trading income of such
Lender, and which has complied with the notification requirements under section 246(5)
of the Irish Taxes Consolidation Act, 1997; or
	 
	 	(e)	 	in respect of which an authorisation granted by the Revenue Commissioners of
Ireland is subsisting on each interest payment date entitling the Borrower to pay such
Lender interest without deduction of income tax, by virtue of an applicable double
taxation treaty between Ireland and the country in which such Lender is resident for
the purposes of such treaty, where such double taxation treaty specifies that no
withholding tax is to be made on interest provided such Lender does not provide its
commitment through a branch or agency in Ireland; or
	 
	 	(f)	 	which is a qualifying company (within the meaning of Clause 110 of the Irish
Taxes Consolidation Act, 1997).

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	 	 	“Quotation Day” means, with respect to any Borrowing and any Interest Period, the day on
which it is market practice in the relevant interbank market for prime banks to give
quotations for deposits in the currency of such Borrowing for delivery on the first day of
such Interest Period, as determined by the Administrative Agent. If such quotations would
normally be given by prime banks on more than one day, the Quotation Day will be the last of
such days.
	 
	 	 	“Rate Type” means the Adjusted Eurocurrency Rate or the Alternative Rate.
	 
	 	 	“Ratio Reporting Date” means the tenth (10th) Business Day after the end of each
Calculation Period. For the purposes of the definition of Ratio Reporting Date, the first
Calculation Period shall be the first calendar month after the calendar month in which the
Closing Date occurred and each subsequent Calculation Period for the purposes of this
definition shall be determined accordingly.
	 
	 	 	“Receivable” means any indebtedness and other payment obligations of any Obligor resulting
from the provision or sale of merchandise, goods or services by an Originator, including the
right to payment of any interest or Finance Charges, value added taxes or sales taxes, late
payment charges, delinquency charges, extension or collection fees but excluding any
Excluded Receivable.
	 
	 	 	“Receivables Loan Agreement” means the Receivables Loan Agreement, dated the Closing Date,
made between the Buyer, Dana International Luxembourg SARL, as the Servicer and, Performance
Undertaking Provider, the Persons from time to time party thereto as Lenders and GE
Leveraged Loans Limited, as the Administrative Agent.
	 
	 	 	“Records” means, with respect to any Receivable, all Contracts, purchase orders, invoices,
customer lists, credit files and other agreements, documents, books, records (including
records relating to billing and collection matters) and other media for the storage of
information (including tapes, disks, punch cards, computer software and databases) related
to such Receivable, the Related Security or the related Obligors.
	 
	 	 	“Reference Banks” means the principal London offices of Barclays Bank plc and The Royal Bank
of Scotland plc or such other banks as may be appointed by the Administrative Agent in
consultation with the Borrower.
	 
	 	 	“Register” has the meaning specified in Clause 10.3(c) (Register) of the Receivables Loan
Agreement.
	 
	 	 	“Related Security” means, with respect to any Receivable, all of the Originators’ or
Borrower’s, as applicable, right, title and interest in, to and under:

	 	(a)	 	all security interests, hypothecs, reservations of ownership, liens or other
Adverse Claims and property subject thereto from time to time purporting to secure
payment of such Receivable, whether pursuant to the Contract related to such Receivable
or otherwise, together with all financing statements, registrations, hypothecs, charges
or other similar filings or instruments against an Obligor and all security agreements
describing any collateral securing such Receivable;

45

 

	 	(b)	 	all guarantees, insurance and other agreements or arrangements of whatever
character from time to time supporting or securing payment of such Receivable whether
pursuant to the Contract related to such Receivable or otherwise (provided, that it is
understood and agreed that notwithstanding anything herein or in any other Transaction
Document to the contrary (i) no Transaction Party shall be required to take any action
to cause any such guarantee, insurance or other agreement or arrangement to be
transferred to or for the benefit of, or otherwise assigned, to any Purchaser to the
extent any such transfer or assignment requires the consent of any Person (other than a
Transaction Party) or is prohibited by applicable Law, and (ii) any amounts received by
any Transaction Party in respect of, or otherwise in connection with, such guarantee,
insurance or other agreement or arrangement shall constitute “Related Security” for all
purposes of the Transaction Documents, including any obligation of any Transaction
Party under the Transaction Documents to promptly deposit amounts received in respect
of Collections to a Facility Account (other than an Existing Collection Account));
	 
	 	(c)	 	all Records related to such Receivable;
	 
	 	(d)	 	any and all goods (including Returned Goods, if any) and documentation or title
evidencing the shipment or storage of any goods, the sale of which by the applicable
Originator gave rise to such Receivable;
	 
	 	(e)	 	all of the Borrower’s right, title and interest in, to and under the
Transaction Documents, including any Borrower Receivable Interest; and
	 
	 	(f)	 	all collections and proceeds of the foregoing.

	 	 	Notwithstanding anything herein or in any other Transaction Document to the contrary, it is
acknowledged and agreed that for all purposes under the Transaction Documents, no action
(other than the transfer and assignment set forth in Clause 2.1 (Agreement to Purchase) of
the German RPA (and any corresponding provisions to any other Originator Sale Agreement) and
any action set forth or otherwise referenced in Schedule 2 (Conditions Precedent for the
Initial Austrian Effective Date), Schedule 3 (Conditions Precedent for the Initial Belgian
Effective Date), Schedule 4 (Conditions Precedent for the Initial French Effective Date),
Schedule 5 (Conditions Precedent for the Initial Italian Effective Date), Schedule 6
(Conditions Precedent for the Initial Spanish Effective Date) and Schedule 2 (Conditions
Precedent Documents) of the Receivables Loan Agreement) is required to be taken by any
Originator to transfer or otherwise assign or perfect any Person’s interest in any Related
Security to any Person pursuant to the Transaction Documents. Any representation, warranty
or covenant of any Person in any Transaction Document as to its or another Person’s
ownership of, or security interest in, the proceeds of any Related Security and to the
assignment or transfer of any Related Security shall be deemed subject to the proviso
contained in this paragraph.
	 
	 	 	“Release” has the meaning specified in Clause 2.6(b)(vii) (Application of Collections prior
to Facility Termination Date) of the Receivables Loan Agreement.
	 
	 	 	“Relevant Jurisdiction” means, in relation to an Transaction Party:

46

 

	 	(a)	 	its jurisdiction of incorporation;
	 
	 	(b)	 	any jurisdiction where any asset subject to or intended to be subject to the
Adverse Claims to be created by it pursuant to the Security Documents is situated;
	 
	 	(c)	 	any jurisdiction where it conducts its business; and
	 
	 	(d)	 	the jurisdiction whose laws govern the perfection of any of the Security
Documents entered into by it.

	 	 	“Reporting Date” means any date on which a Portfolio Report is delivered or required to be
delivered by the Servicer pursuant to Clause 2.3 (Reporting requirements) of the Servicing
Agreement.
	 
	 	 	“Required Lenders” means, at any time when there is more than one Lender, at least two
Lenders (that are not Affiliates of each other) representing in
aggregate more than
662/3% of
the Aggregate Principal Balance, or if the Aggregate Principal Balance is zero, the
Aggregate Commitment or, if the Commitments have been terminated, at least two Lenders (that
are not Affiliates of each other) that represented in aggregate more than 662/3% of the
Aggregate Principal Balance, or if the Aggregate Principal Balance is zero, the Aggregate
Commitment immediately prior to such termination. If, at any time, there is only one
Lender, “Required Lenders” shall mean such Lender.
	 
	 	 	“Responsible Officer” means, with respect to any Transaction Party, the president, any vice
president, a director, any duly authorised officer, the chief financial officer, the
treasurer, the comptroller, the assistant comptroller, the assistant treasurer or, to the
extent any of the foregoing are not recognised in a jurisdiction, the equivalent thereof in
such jurisdiction, of such Transaction Party.
	 
	 	 	“Restricted Payments” has the meaning specified in Clause 5.1(n) (Distributions, etc) of the
Receivables Loan Agreement.
	 
	 	 	“Restricted Receivable” means any Receivable that arose under a Contract the terms of which
require notice to, or the consent of, the relevant Obligor to the assignment of such
Receivable.
	 
	 	 	“Restructuring Charges” means non-recurring and other one-time costs incurred by any Dana
European Entity in connection with the reorganisation or discontinuation of its business,
operations and structuring in respect of (a) facility closures and the consolidation,
relocation or elimination of operations and (b) related severance costs and other costs
incurred in connection with the termination, relocation and training of employees.
	 
	 	 	“Returned Goods” means all right, title and interest in and to returned, repossessed or
foreclosed goods and/or merchandise the sale of which gave rise to a Receivable; provided
that such goods shall no longer constitute Returned Goods after a Deemed Collection has been
received with respect to the full Unpaid Balance of the related Receivables.

47

 

	 	 	“RIBA Advance” means any amount paid by an Italian Originator to an Italian Collection
Account Bank in respect of any amount credited by such Italian Collection Account Bank to an
Existing Italian Collection Account or New Italian Collection Account in respect of a
payment to be made by an Obligor of a Pool Receivable via the RIBA system and in respect of
which such Obligor subsequently defaulted in the making such of payment via the RIBA system.
	 
	 	 	“RIBA Dilution” means any reduction in the funds on deposit in any Existing Italian
Collection Account or New Italian Collection Account by an Italian Collection Account Bank
in respect of any amount credited or otherwise advanced by such bank or financial
institution in respect of a payment to be made by an Obligor of a Receivable (other than a
Pool Receivable) via the RIBA system and in respect of which such Obligor subsequently
defaulted in the making of such payment via the RIBA system.
	 
	 	 	“Roll-Forward Report” means a report in the Agreed Form furnished by or on behalf of the
Servicer pursuant to Clause 2.3 (Reporting Requirements) of the Servicing Agreement.
	 
	 	 	“S&P” means Standard & Poor’s Rating Services, a division of McGraw Hill Companies, Inc.
	 
	 	 	“Schedule of Definitions” means this Master Schedule of Definitions, Interpretations and
Construction, signed by the parties hereto for the purposes of identification.
	 
	 	 	“Scheduled Commitment Facility Termination Date” means the day falling five (5) years after
the Closing Date.
	 
	 	 	“Secured Parties” means, collectively, the Lenders, the Administrative Agent and each other
Indemnified Party.
	 
	 	 	“Security Agreement” means the Deed of Charge and Assignment, dated the Closing Date,
between the Borrower and the Administrative Agent.
	 
	 	 	“Security Documents” means the Security Agreement, each Account Security Agreement and each
other document entered into by any Transaction Party creating or expressing to create any
Adverse Claim over all or any part of its assets in respect of the obligations of any of the
Transaction Parties under any of the Transaction Documents.
	 
	 	 	“Seller Event” means a Seller Termination Event, Seller Suspension Event, Potential Seller
Termination Event or Potential Seller Suspension Event.
	 
	 	 	“Seller Payout Date” means a “Seller Payout Date” under, and as defined in, any Originator
Sale Agreement.
	 
	 	 	“Seller Suspension Event” means a “Seller Suspension Event” under, and as defined in, any
Originator Sale Agreement.
	 
	 	 	“Seller Termination Date” means the “Termination Date” under, and as defined in, any
Originator Sale Agreement.

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	 	 	“Seller Termination Event” means a “Seller Termination Event” under, and as defined in, any
Originator Sale Agreement.
	 
	 	 	“Servicer” means at any time the Person then authorised pursuant to Clause 2.1 (Designation
of Servicer; power of attorney) of the Servicing Agreement to administer and collect the
Receivables which shall, as at the Closing Date, be Dana International Luxembourg SARL.
	 
	 	 	“Servicer Default” has the meaning specified in Clause 2.9 (Servicer Default) of the
Servicing Agreement.
	 
	 	 	“Servicer Parties” means, collectively, the Servicer and the Sub-Servicers.
	 
	 	 	“Servicing Agreement” means the Servicing Agreement, dated the Closing Date among the
Servicer, the Borrower, the Sub-Servicers and the Administrative Agent.
	 
	 	 	“Servicing Fee” has the meaning specified in Clause 2.10 (Servicing Fee) of the Servicing
Agreement.
	 
	 	 	“Servicing Fee Payment Date” means the tenth (10th) Business Day after the end of
each Calculation Period.
	 
	 	 	“Servicing Fee Percentage” means 0.1 % or such other rate as may be reasonably agreed in
writing between the Servicer and the Administrative Agent (provided that the agreement in
writing of the Administrative Agent shall not be required for any increase or decrease in
the Servicing Fee Percentage which results in the Servicing Fee Percentage being equal to or
greater than 0.1% and less than or equal to 0.5% subject to the Administrative Agent
receiving prior written notification from the Servicer of any such increase or decrease) or,
following a Servicer Default and the appointment of a successor Servicer pursuant to, and in
accordance with, the Transaction Documents, such other rate per annum as may be reasonably
agreed by such successor Servicer and the Administrative Agent (with the prior written
consent of the Required Lenders).
	 
	 	 	“Set-Off Reduction” means, on the tenth (10th) Business Day of any calendar month
and continuing until (but not including) the tenth (10th) Business Day of the
next calendar month, the Euro Equivalent determined as of the last day of the immediately
preceding Calculation Period of the sum for each Obligor of a Pool Receivable originated by
any Originator of the lesser of (a) the aggregate of all amounts owed by any such Originator
as of such last day to such Obligor, and (b) the Unpaid Balance of Pool Receivables of such
Obligor.
	 
	 	 	“Settlement Date” for any Loan means (a) each Intra-month Settlement Date and (b) on and
after the occurrence of the Facility Termination Date, each Business Day.
	 
	 	 	“Share Trustee” means Structured Finance Management Corporate Services (Ireland) Limited.
	 
	 	 	“Spanish Account Agency Agreement” means any agreement designated as such in any Spanish
RPA.

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	 	 	“Spanish Account Security Agreement” means any agreement designated as such in any Spanish
RPA.
	 
	 	 	“Spanish Account SPV” has the meaning specified in the Spanish RPA.
	 
	 	 	“Spanish Collection Account Bank” means any bank or other financial institution set forth on
Schedule 8 (Facility Accounts and Account Banks) under the heading “Spanish Collection
Account Banks”, as such Schedule may be amended from time to time in accordance herewith.
	 
	 	 	“Spanish Corporate Services Provider” means, in respect of the Spanish Account SPV,
Structured Finance Management (Spain), S.L..
	 
	 	 	“Spanish Draft Instrument” means any negotiable instrument in the form of a bill of exchange
(letra de cambio), a promissory note (pagare) or a cheque (cheque); provided that (a) any
such instrument has been issued pursuant to Spanish Law 19/1985 dated July 16 (Ley 19/1985,
de 16 de julio, Cambiaria y del Cheque), as amended from time to time, and complies with all
formalities under such Law, (b) all Taxes payable as a result of the issuance and
negotiation of such instrument have been duly and timely paid, and (c) such instrument is
fully enforceable against the relevant Obligor, freely transferable and free from any
Adverse Claims or other rights of any third party.
	 
	 	 	“Spanish Originators” means each entity designated as a “Seller” under a Spanish RPA.
	 
	 	 	“Spanish RPAs” means the receivables purchase agreements, dated on or about the Initial
Spanish Effective Date, between (i) Dana Automoción, S.A. and the Borrower and (ii) Spicer
Ayra Cardan, S.A. and the Borrower, and such additional Spanish law receivables purchase
agreements as may be entered into from time to time pursuant to Clause 10.12(b) (Limitation
on the addition and termination of Originators) of the Receivables Loan Agreement, for so
long as such agreements remain in full force and effect. “Spanish RPA” means either of them.
	 
	 	 	“Spanish Seller Payout Call Option Agreement” means the Spanish seller payout call option
agreement dated on or about the Closing Date between Dana Automocion, S.A. and the Borrower.
	 
	 	 	“Specified Deemed Collection Clauses” means Clause 2.8 (Deemed Collections; application of
payments) of the Receivables Loan Agreement, Clause 2.13 of the Servicing Agreement and
Clause 2.3 of the German RPA (or any corresponding Clause of any other Originator Sale
Agreement).
	 
	 	 	“Spot Rate” means on any day, for the purpose of determining the Euro Equivalent or Dollar
Equivalent, as applicable of any currency, the rate at which such currency may be exchanged
into Euro or U.S. Dollars, as the case may be, as set forth on the European Central Bank
page for foreign currency exchange reference rates for such day and for such currency. Such
reference rates are based on the regular daily concentration procedure between central banks
within and outside the European System of Central Banks, which normally takes place at
2:15p.m. (Central European Time). In the event that such rate is not available, the Spot
Rate shall be determined

50

 

	 	 	by referencing the Bloomberg historical pricing page for the applicable currency conversion
with the applicable rate being the closing rate for the London foreign exchange market on
the relevant Business Day; provided, that if at the time of any such determination, for any
reason, no such spot rate is being quoted, the Administrative Agent may use any reasonable
method it deems appropriate to determine such rate, and such determination shall be
conclusive absent manifest error.
	 
	 	 	“Standard Rate” means for any Loan during any Interest Period, an interest rate per annum
equal to the sum of the Applicable Margin plus the Adjusted Eurocurrency Rate for such
Interest Period; provided, however, that in case of any Interest Period with respect to
which the Adjusted Eurocurrency Rate is not available pursuant to Clause 2.12 (Illegality)
or 2.13 (Inability to determine Eurocurrency Rate) of the Receivables Loan Agreement, the
Standard Rate for such Interest Period shall be an interest rate per annum equal to the sum
of the Applicable Margin plus the Alternative Rate in effect from time to time during such
Interest Period.
	 
	 	 	“Standard Terms and Conditions” means, with respect to any Originator, the standard terms
and conditions of such Originator in effect on the Closing Date and set forth in Schedule 3
(Standard Terms and Conditions) of the relevant Originator Sale Agreement, as modified (i)
in compliance with the Receivables Loan Agreement, the Originator Sale Agreements and the
Servicing Agreement, or (ii) by the application of Law.
	 
	 	 	“Statutory Reserves” means, with respect to any Lender and any Loan made in any currency
(other than U.S. Dollars), any currency, maximum reserve, liquid asset, fees or similar
requirements (including any marginal, special, emergency or supplemental reserves or other
requirements) established by any central bank, monetary authority, the Bank of England, the
Financial Services Authority, the European Central Bank or other Official Body for any
category of deposits or liabilities customarily used to fund loans in such currency or by
reference to which interest rates applicable to loans in such currency are determined, in
each case expressed as a percentage of the Principal Balance of such Loan, as determined by
the Administrative Agent. The Statutory Reserve Rate shall be adjusted automatically on and
as of the effective date of any change in any reserve, liquid asset or similar requirement.
	 
	 	 	“Sterling” and “£” means the lawful currency of the United Kingdom.
	 
	 	 	“Structuring Agent” means GE Leveraged Loans Limited.
	 
	 	 	“Structuring Agent Fee Letter” has the meaning specified in Clause 2.4(b) (Interest and
Fees) of the Receivables Loan Agreement.
	 
	 	 	“Sub-Servicer” has the meaning specified in Clause 2.5 (Sub-Servicers) of the Servicing
Agreement.
	 
	 	 	“Subordinated Guarantor” means Dana International Luxembourg SARL or any permitted successor
thereto or assignee thereof under the Subordinated Loan Agreement.
	 
	 	 	“Subordinated Lender” means Dana Europe S.A. or any permitted successor thereto or assignee
thereof under the Subordinated Loan Agreement.

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	 	 	“Subordinated Loan” has the meaning specified in the Subordinated Loan Agreement.
	 
	 	 	“Subordinated Loan Agreement” means the Subordinated Loan Agreement, dated the Closing Date,
between the Borrower, the Administrative Agent, the Servicer and the Subordinated Lender.
	 
	 	 	“Subordinated Loan Borrowing Request” has the meaning specified in the Subordinated Loan
Agreement.
	 
	 	 	“Subsidiary” means, with respect to any Person (herein referred to as the “parent”), any
corporation, limited company, partnership, association or other business entity (a) of which
securities or other ownership interests representing more than 50% of the equity or more
than 50% of the ordinary voting power or more than 50% of the general partnership interests
are, at the time any determination is being made, directly or indirectly, owned, controlled
or held or (b) that is, at the time any determination is made, otherwise controlled (as
defined in the definition of Affiliate), in each case of clauses (a) and (b), by the parent
or one or more Subsidiaries of the parent or by the parent and one or more Subsidiaries of
the parent.
	 
	 	 	“TARGET” means Trans-European Automated Real-time Gross Settlement Express Transfer payment
system.
	 
	 	 	“TARGET Day” means any day on which TARGET is open for the settlement of payments in Euro.
	 
	 	 	“Taxes” means any tax, levy, impost, duty or other charge or withholding of a similar nature
(including any penalty or interest payable in connection with any failure to pay or any
delay in paying any of the same) imposed by an Official Body.
	 
	 	 	“Testing Date” means (a) during the Trigger Period, the last day of each calendar month, and
(b) otherwise the last day of each financial quarter of the Performance Undertaking
Provider.
	 
	 	 	“Tooling Programme” means any program whereby tooling equipment is purchased or progress
payments are made to facilitate production customer’s products and whereby the customer will
ultimately repurchase the tooling equipment after the final approval by such customer.
	 
	 	 	“tPR” means the body corporate called the Pensions Regulator established under Part I of the
Pensions Act.
	 
	 	 	“Transaction Documents” means this Schedule of Definitions, the Receivables Loan Agreement,
the Intermediate Transfer Agreements, the Originator Sale Agreements, the Servicing
Agreement, the Security Documents, the Spanish Account Agency Agreement, the Performance
Undertaking, the Subordinated Loan Agreement, the Fee Letters and all other instruments,
documents and agreements executed and/or delivered pursuant to or in connection therewith.

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	 	 	“Transaction Fees” means legal, appraisal, financing, consulting, other advisor, and other
fees and costs incurred in connection with the Transaction Documents and the transactions
contemplated thereby.
	 
	 	 	“Transaction Parties” means, collectively, each Transaction SPV, each Originator, the
Performance Undertaking Provider, the Servicer (so long as it is an Originator or an
Affiliate thereof), each Sub-Servicer (so long as it is an Originator or an Affiliate
thereof) and the Subordinated Lender.
	 
	 	 	“Transaction Party Obligations” means all present and future indebtedness and other
liabilities and obligations (howsoever created, arising or evidenced, whether direct or
indirect, absolute or contingent, or due or to become due) of the Borrower or any other
Transaction Party to the Secured Parties arising under or in connection with the Receivables
Loan Agreement or any other Transaction Document or the transactions contemplated hereby or
thereby.
	 
	 	 	“Transaction SPV” means the Borrower or the Spanish Account SPV.
	 
	 	 	“Trigger Period” means the period commencing on the first quarterly Testing Date (and if
there has been any Trigger Period prior to such Testing Date, on the first quarterly Testing
Date after the end of such prior Trigger Period) on which the Fixed Charges Coverage Ratio
is less than 1.50:1 and ending on the sixth consecutive monthly Testing Date thereafter on
which the Fixed Charges Coverage Ratio (calculated without taking into account any Covenant
Correction Amount) is at least 1.50:1.
	 
	 	 	"U.K. Pension Schemes” means all of (a) the Dana Manufacturing Group pension Scheme
established by a trust deed dated 8 June 1993, (b) the Hobourn Group Pension Scheme
established by a trust deed dated 22 December 1983, (c) the Dana UK Pension Scheme,
established by a trust deed dated 5 April 1996 and (d) the Q. H. Pension Plan, established
by a trust deed dated 25 June 1957.
	 
	 	 	“U.K. PensionCo” means that Subsidiary of Dana Corporation established (or to be
established) in the United Kingdom that has assumed (or will assume) the pensions
liabilities of all of the U.K Pensions Schemes.
	 
	 	 	“Unpaid Balance” means, with respect to any Receivable at any time, the unpaid amount of
such Receivable at such time, excluding any Finance Charges.
	 
	 	 	“U.S.” means the United States of America.
	 
	 	 	“U.S. Dollars” and “$” each mean the lawful currency of the United States of America.
	 
	2.2	 	Other terms
	 
	 	 	All terms defined directly or by incorporation herein shall have the defined meanings when
used in any certificate or other document delivered pursuant hereto unless otherwise defined
therein. For purposes of this Schedule of Definitions and all such certificates and other
documents, unless the context otherwise requires: (a) accounting terms not otherwise defined
herein, and accounting terms partly defined herein to the

53

 

	 	 	extent not defined, shall have the respective meanings given to them under, and shall be
construed in accordance with, GAAP; (b) references to any amount as on deposit or
outstanding on any particular date means such amount at the close of business on such day;
(c) the words “hereof,” “herein” and “hereunder” and words of similar import refer to this
Schedule of Definitions (or the certificate or other document in which they are used) as a
whole and not to any particular provision of this Schedule of Definitions (or such
certificate or document); (d) references to any Clause, Schedule or Exhibit are references
to Clauses, Schedules and Exhibits in or to this Schedule of Definitions (or the certificate
or other document in which the reference is made) and references to any paragraph,
subsection, clause or other subdivision within any Clause or definition refer to such
paragraph, subsection, clause or other subdivision of such Clause or definition; (e) the
term “including” means “including without limitation”; (f) references to any Law refer to
that Law as amended or re-enacted from time to time and include any successor Law; (g)
references to any agreement refer to that agreement as from time to time amended,
supplemented, extended, restated or novated or as the terms of such agreement are waived or
modified in accordance with its terms; (h) references to any Person include that Person’s
successors and permitted assigns; (i) references to “set-off” shall include analogous rights
under applicable Law; (j) references to “good and marketable title” shall include analogous
ownership rights under applicable Law; (k) references to the “knowledge” of any Responsible
Officer of a Person shall be the facts or circumstances actually known to such Person or of
which such Person should have had knowledge after reasonable inquiry, (l) headings are for
purposes of reference only and shall not otherwise affect the meaning or interpretation of
any provision hereof; (m) wherever in this Agreement or any other Transaction Document a
requirement appears or a statement is made that, as a result of the transaction contemplated
by the relevant Transaction Documents the Borrower must have “perfected” and “enforceable”
title to the Receivables, or that such Receivables must be “free and clear of any Adverse
Claim”, such requirement or statement, where applicable to the Receivables transferred
pursuant to the French Intermediate Transfer Agreement, shall not be deemed to be breached
merely because under French law a notice needs to be given to the relevant Obligors in order
to ensure that the transfer is enforceable against third parties, (n) wherever in this
Agreement or any other Transaction Document a requirement appears or a statement is made
that, as a result of the transaction contemplated by the relevant Transaction Documents the
Administrative Agent (acting on its own behalf or on behalf of other parties) must have a
“legal”, “valid”, “perfected” and “enforceable” security interest under a French Account
Security Agreement, such requirement or statement, where applicable to a security interest
assigned pursuant to the Security Agreement, shall not be deemed to be breached merely
because under French law (x) the security holder under such French Account Security
Agreement is viewed as being the Borrower or the Intermediate Transferor as applicable, or
(y) the Security Agreement will produce an effect under French law different from the effect
that the Security Agreement would have had under Irish law and the Borrower or the
Intermediate Transferor as applicable remain the direct security holders under the French
Account Security Agreements under French law, (o) notwithstanding any term herein or in any
other Transaction Document to the contrary, prior to the Initial Austrian Effective Date the
terms “Existing Austrian Collection Account”, “Austrian Account Security Agreement”,
“Austrian Collection Account Bank”, “Austrian Intermediate Transfer Agreement”, “Austrian
Originators”, “Austrian RPA”, and terms related thereto shall be disregarded for all
purposes of the Transaction Documents, including for the

54

 

	 	 	purposes of the Facility Events and the representations, warranties, covenants and
indemnities therein, provided that this sub-clause (o) shall not apply with respect to (i)
the definitions of Initial Austrian Effective Date, (ii) the Austrian RPA, and (iii) Clause
3 (General Undertaking) of the Performance Undertaking, (p) notwithstanding any term herein
or in any other Transaction Document to the contrary, prior to the Initial Belgian Effective
Date the terms “Existing Belgian Collection Account”, “Belgian Account Security Agreement”,
“Belgian Collection Account Bank”, “Belgian Originators”, “Belgian RPA”, and terms related
thereto shall be disregarded for all purposes of the Transaction Documents, including for
the purposes of the Facility Events and the representations, warranties, covenants and
indemnities therein, provided that this sub-clause (p) shall not apply with respect to (i)
the definitions of Initial Belgian Effective Date, (ii) the Belgian RPA, and (iii) Clause 3
(General Undertaking) of the Performance Undertaking, (q) notwithstanding any term herein or
in any other Transaction Document to the contrary, prior to the Initial French Effective
Date the terms “Existing French Collection Account”, “French Account Security Agreement”,
“French Collection Account Bank”, “French Intermediate Transfer Agreement”, “French
Originators”, “French RPA”, “French Bill of Exchange” and terms related thereto shall be
disregarded for all purposes of the Transaction Documents, including for the purposes of the
Facility Events and the representations, warranties, covenants and indemnities therein,
provided that this sub-clause (q) shall not apply with respect to (i) the definitions of
Initial French Effective Date, (ii) the French RPA, and (iii) Clause 3 (General Undertaking)
of the Performance Undertaking, (r) notwithstanding any term herein or in any other
Transaction Document to the contrary, prior to the Initial Italian Effective Date the terms
“Existing Italian Collection Account”, “ Italian Account Security Agreement”, “ Italian
Collection Account Bank”, “ Italian Intermediate Transfer Agreement”, “Italian Originators”,
“Italian RPA”, “RIBA Advance, “RIBA Dilution” and terms related thereto shall be disregarded
for all purposes of the Transaction Documents, including for the purposes of the Facility
Events and the representations, warranties, covenants and indemnities therein, provided that
this sub-clause (r) shall not apply with respect to (i) the definitions of Initial Italian
Effective Date, (ii) the Italian RPA, and (iii) Clause 3 (General Undertaking) of the
Performance Undertaking, and (s) notwithstanding any term herein or in any other Transaction
Document to the contrary, prior to the Initial Spanish Effective Date the terms “Existing
Spanish Collection Account”, “Spanish Account Security Agreement”, “Spanish Collection
Account Bank”, “Spanish Originators”, “Spanish RPA”, “Spanish Draft Instrument”, “Spanish
Account SPV”, “Spanish Corporate Services Provider” and terms related thereto shall be
disregarded for all purposes of the Transaction Documents, including for the purposes of the
Facility Events and the representations, warranties, covenants and indemnities therein,
provided that this sub-clause (s) shall not apply with respect to (i) the definitions of
Initial Spanish Effective Date, (ii) the Spanish RPA, and (iii) Clause 3 (General
Undertaking) of the Performance Undertaking.
	 
	2.3	 	Computation of time periods
	 
	 	 	Unless otherwise stated in a Transaction Document, in the computation of a period of time
from a specified date to a later specified date, the word “from” means “from and including”,
the words “to” and “until” each means “to but excluding”, and the word “within” means “from
and excluding a specified date and to and including a later specified date”.

55

 

	3.	 	MISCELLANEOUS
	 
	3.1	 	Amendment
	 
	 	 	No amendment or waiver of any provision of this Schedule of Definitions or consent to any
departure by any Transaction Party therefrom shall be effective unless in writing signed by
the Administrative Agent, with the prior written consent of the Required Lenders (and, in
the case of any amendment, also signed by the Borrower, the Servicer and the Performance
Undertaking Provider), and then such amendment, waiver or consent shall be effective only in
the specific instance and for the specific purpose for which given; provided that no
amendment, waiver or consent shall:

	 	(a)	 	unless in writing and signed by each Lender (or, in the case of Clause
3.1(a)(ii), each Lender having its fees reduced or delayed or its Commitment increased)
and the Administrative Agent be effective, if the effect of such amendment:

	 	(i)	 	reduces the Principal Balance of, or Interest that is payable
on, account of any Loan or delay any scheduled date for payment thereof;
	 
	 	(ii)	 	reduces the fees payable by the Borrower to the Lenders,
increases a Lender’s Commitment or delays the dates on which such fees are
payable;
	 
	 	(iii)	 	extends the Scheduled Commitment Facility Termination Date or
the Maturity Date;
	 
	 	(iv)	 	releases any portion of the Collateral if a Facility Event has
occurred and is continuing or would result therefrom;
	 
	 	(v)	 	changes any of the provisions of this Clause or the definition
of “Required Lenders”;
	 
	 	(vi)	 	amends any Facility Suspension Event set forth in Clause 7.1
(Facility Suspension Events) of the Receivables Loan Agreement or any Facility
Termination Event set forth in Clause 7.2 (Facility Termination Events) of the
Receivables Loan Agreement;
	 
	 	(vii)	 	amends the definition of “Approved Currency”, “Defaulted
Receivable”, “Maximum Aggregate Principal Balance” or increase the Applicable
MAPB Percentage, the Maximum Percentage Factor or any Concentration Limit; or
	 
	 	(viii)	 	releases the Performance Undertaking Provider from its obligations under the
Performance Undertaking;

	 	(b)	 	increase the Commitment of any Lender unless in writing and signed by such
Lender;
	 
	 	(c)	 	change any term used in any Originator Sale Agreement, unless signed by the
Originator which is a party to such Originator Sale Agreement; or

56

 

	 	(d)	 	change any terms used in any Intermediate Transfer Agreement, unless signed by
the Intermediate Transferor.

	3.2	 	Notices
	 
	 	 	All communications and notices provided for under any Transaction Document shall be provided
in the manner described in Schedule 1 (Address and Notice Information).
	 
	3.3	 	Governing Law
	 
	 	 	This Schedule of Definitions shall be governed by and construed in accordance with
English law.
	 
	3.4	 	Execution in counterparts
	 
	 	 	This Schedule of Definitions may be executed in any number of counterparts, each of which
when so executed shall be deemed to be an original and all of which when taken together
shall constitute one and the same agreement. Delivery of an executed counterpart of a
signature page to this Schedule of Definitions by facsimile or by electronic file in a
format that is accessible by the recipient shall be effective as delivery of a manually
executed counterpart of this Schedule of Definitions.
	 
	4.	 	ACCESSION OF ORIGINATORS
	 
	4.1	 	Deed of Accession
	 
	 	 	Prior to the Initial Effective Date applicable to an Originator (other than a German
Originator) (an “Acceding Originator”), the Performance Undertaking Provider shall procure
that such Originator shall execute and deliver to the Administrative Agent a Deed of
Accession.
	 
	4.2	 	Effect of Deed of Accession
	 
	 	 	Immediately upon the Deed of Accession being countersigned by the Administrative Agent,
subject to agreement between the relevant parties of the applicable Initial Effective Date:

	 	(a)	 	the Acceding Originator shall accede to, and shall be bound by and have the
benefit of:

	 	(i)	 	this Schedule of Definitions as an Originator; and
	 
	 	(ii)	 	the Servicing Agreement as an Original Sub-Servicer; and

	 	(b)	 	by doing so, the Acceding Originator:

	 	(i)	 	becomes an Originator for the purposes of the Transaction
Documents;
	 
	 	(ii)	 	is appointed by the Servicer as an Original Sub-Servicer
pursuant to Clause 2.5(b) (Sub-Servicers) of the Servicing Agreement;

57

 

	 	(iii)	 	confirms that its address for communications and notices is as
set out in Schedule 1 (Address and Notice Information); and
	 
	 	(iv)	 	confirms the appointment of its English Process Agent as its
agent for service of process.

	4.3	 	Acknowledgements and confirmations

	 	(a)	 	The Performance Undertaking Provider acknowledges and confirms that upon the
accession of the Acceding Originator to this Schedule of Definitions and the Servicing
Agreement, its performance undertaking in Clause 2 (Performance Undertaking) and
indemnity in Clause 3 (General Indemnity) of the Performance Undertaking shall extend
to the Obligations of the Acceding Originator under the Schedule of Definitions, the
Servicing Agreement and the other Transaction Documents to which such Acceding
Originator is party.
	 
	 	(b)	 	The provision of this Clause 4 (Accession of Originators) only applies to the accession to the
Transaction Documents of those Originators expressly referred to by their corporate name in the
definitions of Austrian RPA, Belgian RPA, French RPA, Italian RPA and Spanish RPA. The addition of
any other new Originator shall be effected in accordance with Clause 10.12 (Limitation on the
addition and termination of Originators) of the Receivables Loan Agreement.

58

 

[Schedules Omitted]

 

 

EXECUTION of Schedule of Definitions

The parties have shown their acceptance of the terms of this Schedule of Definitions by signing it
below for the purposes of identification as of the date first written above.

The Borrower

	 	 	 
	Given under the Common Seal
	 
	 	 
	of Dana Europe Financing (Ireland) Limited:
	 
	 	 
	/s/ Frank Heffernan
 

	 	 
	 
	 	 
	Director
	 	 
	 
	 	 
	/s/Michelle Hall
 

	 	 
	 
	 	 
	Secretary
	 	 
	Structured Finance Management (Ireland) Limited
	as Secretary
	 	 

S-1

 

EXECUTION of Schedule of Definitions

The Servicer

DANA INTERNATIONAL LUXEMBOURG SARL

	 	 	 
	Signature:

	 	/s/ Cornelia v. Künsberg
	 
	 	 
	Name:

	 	Cornelia v. Künsberg
	 
	 	 
	Title/Authority

	 	: Authorised Director and PoA Holder
	
	 	 

 

 

EXECUTION of Schedule of Definitions

The Lender

	 	 	 	 	 
	Signed by Adrian Spurling as attorney for
	 
	 	 	 	 
	GE LEVERAGED LOANS LIMITED
	 
	 	 	 	 
	/s/ Adrian Spurling
 

	 	 	 	 
	 
	 	 	 	 
	 	 	 
	 
	 	 	 	 
	under a power of attorney dated 22 March 2007
	 
	 	 	 	 
	Attorney for GE LEVERAGED LOANS LIMITED

S-3

 

EXECUTION of Schedule of Definitions

The Administrative Agent

Signed by Adrian Spurling as attorney for

GE LEVERAGED LOANS LIMITED

	 	 	 	 	 
	/s/ Adrian Spurling
 

	 	 
	 	 
	 
	 	 	 	 
	 	 	 

under a power of attorney dated 22 March 2007

Attorney for GE LEVERAGED LOANS

LIMITED

 

 

EXECUTION of Schedule of Definitions

The Performance Undertaking Provider

DANA INTERNATIONAL LUXEMBOURG SARL

	 	 	 
	Signature:

	 	/s/ Cornelia v. Künsberg
	 
	 	 
	Name:

	 	Cornelia von Künsberg
	 
	 	 
	Title/Authority: Authorised Director and
PoA Holder

 

 

EXECUTION of Schedule of Definitions

The Intermediate Transferor

Signed by Adrian Spurling as attorney for

GE FACTOFRANCE SNC

	 	 	 	 	 
	/s/ Adrian Spurling
 

	 	 
	 	 
	 
	 	 	 	 
	 	 	 

under a power of attorney dated 16 July 2007

Attorney for GE FACTOFRANCE SNC

S-6

 

EXECUTION of Schedule of Definitions

The Subordinated Lender

DANA EUROPE S.A.

	 	 	 	 	 
	Signature:

	 	/s/ Teresa Mulawa
 

	 	 
	 
	 	 	 	 
	Name:
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	Title/Authority:
	 	 	 	 
	 

	 	 

	 	 

S-7

 

EXECUTION of Schedule of Definitions

Corporate Services Provider

STRUCTURED FINANCE MANAGEMENT (IRELAND) LIMITED

	 	 	 	 	 
	Signature:

	 	/s/ Frank Heffernan
 

	 	 
	 
	 	 	 	 
	Name: Frank Heffernan	 	 
	 
	 	 	 	 
	Title/Authority: Director	 	 

S-9

 

EXECUTION of Schedule of Definitions

REINZ-DICHTUNGS-GMBH

	 	 	 	 	 
	Signature:

	 	/s/ Cornelia v. Künsberg
 

	 	 
	 
	 	 	 	 
	Name: Cornelia von Künsberg	 	 
	 
	 	 	 	 
	Title/Authority: PoA Holder	 	 

 

 

EXECUTION of Schedule of Definitions

SPICER GELENKWELLENBAU GMBH

	 	 	 	 	 
	Signature:

	 	/s/ Cornelia v. Künsberg
 

	 	 
	 
	 	 	 	 
	Name: Cornelia von Künsberg	 	 
	 
	 	 	 	 
	Title/Authority: PoA Holder	 	 

 

EXECUTION of Schedule of Definitions

The Subordinated Guarantor

DANA INTERNATIONAL LUXEMBOURG SARL

	 	 	 	 	 
	Signature:

	 	/s/ Teresa Mulawa
 

	 	 
	 
	 	 	 	 
	Name:
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	Title/Authority:
	 	 	 	 
	 

	 	 

	 	 

S-19EX-10(Z)(3)

 

			
	EXECUTION VERSION
	 	Exhibit 10-Z(3)

Dated 18 July 2007

	 
	 	 	 	 
	(1)	 	DANA INTERNATIONAL LUXEMBOURG SARL, as Performance Undertaking Provider
	 
	(2)	 	THE INTERMEDIATE TRANSFEROR
	 
	(3)	 	DANA EUROPE FINANCING (IRELAND) LIMITED, as Borrower
	 
	(4)	 	GE LEVERAGED LOANS LIMITED, as Administrative Agent
	 
	(5)	 	THE OTHER SECURED PARTIES

 

PERFORMANCE AND INDEMNITY DEED

 

 

LONDON

 

 

CONTENTS

	 	 	 	 	 
	Clause	 	Page	 
	 
	 	 	 	 
	1. Definitions
	 	 	2	 
	2. Performance Undertaking
	 	 	3	 
	3. General indemnity
	 	 	3	 
	4. Taxes
	 	 	4	 
	5. Agreement to pay Stamp Taxes
	 	 	5	 
	6. Obligations absolute; waiver of defences
	 	 	6	 
	7. Immediate recourse; Deferral of rights
	 	 	6	 
	8. Additional Security
	 	 	7	 
	9. Representations and warranties
	 	 	7	 
	10. Covenants
	 	 	11	 
	11. Subrogation; subordination
	 	 	18	 
	12. Termination; reinstatement
	 	 	19	 
	13. Effect of bankruptcy
	 	 	19	 
	14. Judgment Currency
	 	 	19	 
	15. Benefit of Deed
	 	 	20	 
	16. Assignment
	 	 	20	 
	17. Amendments and waivers
	 	 	20	 
	18. Notices
	 	 	21	 
	19. Governing law, jurisdiction and process
	 	 	21	 
	20. No proceedings; limited recourse
	 	 	21	 
	21. Entire agreement; severability
	 	 	22	 
	22. Execution
	 	 	23	 

 

 

THIS DEED is dated 18 July 2007 and executed by:

	(1)	 	DANA INTERNATIONAL LUXEMBOURG SARL, a company formed under the laws of Luxembourg (the
“Performance Undertaking Provider”), in favour of:
	 
	(2)	 	GE FACTOFRANCE SNC as Intermediate Transferor;
	 
	(3)	 	DANA EUROPE FINANCING (IRELAND) LIMITED, a limited liability company incorporated under the
laws of the Republic of Ireland (the “Borrower”);
	 
	(4)	 	GE LEVERAGED LOANS LIMITED, as Administrative Agent on behalf of the Secured Parties under
the Receivables Loan Agreement and the other Transaction Documents referred to below (in such
capacity, the “Administrative Agent”); and
	 
	(5)	 	THE OTHER SECURED PARTIES, as defined in the Receivables Loan Agreement referred to below
(the Intermediate Transferor, the Borrower, the Administrative Agent and the other Secured
Parties are referred to herein as, the “Beneficiaries”).

BACKGROUND:

	(A)	 	Each Originator has entered into an Originator Sale Agreement with the Intermediate
Transferor or with the Borrower as purchaser, pursuant to which such Originator, subject to
the terms and conditions of such Originator Sale Agreement, has sold, contributed or otherwise
conveyed and will sell, contribute or otherwise convey to such Purchaser all of its right,
title and interest in certain Receivables and Related Security.
	 
	(B)	 	In order to finance its purchases of Receivables and Related Security pursuant to each
Originator Sale Agreement to which it is a party, the Intermediate Transferor has entered into
Intermediate Transfer Agreements pursuant to which the Borrower, subject to the terms and
conditions of such Intermediate Transfer Agreements, will from time to time purchase, make
loans secured by, or otherwise acquire Borrower Receivables Interests in such Receivables and
Related Security.
	 
	(C)	 	In order to obtain the funds with which to acquire Receivables and Related Security from
Originators and Borrower Receivables Interests from the Intermediate Transferor, the Borrower
has entered into the Receivables Loan Agreement, pursuant to which the Lenders shall make
Loans requested by the Borrower from time to time, in each case subject to the terms and
conditions of the Receivables Loan Agreement.
	 
	(D)	 	Each of the Originators and Dana International Luxembourg SARL (“Dana”) have entered into a
Servicing Agreement with the Purchasers and the Administrative Agent, pursuant to which, among
other things, Dana has agreed to act as initial servicer and each of the Originators have
agreed to act as sub-servicers, in each case, for the Purchasers and the Administrative Agent
with respect to the servicing and collection of Receivables and Related Security.
	 
	(E)	 	The Subordinated Lender has entered into a Subordinated Loan Agreement with the Borrower,
pursuant to which the Subordinated Lender has agreed, among other things, to make subordinated
loans to the Borrower in order to finance a portion of the

1

 

	 	 	purchase price of Receivables and Related Security or Borrower Receivables Interests to be
acquired by the Borrower from the Originators and the Intermediate Transferor.
	 
	(F)	 	The Account SPVs have entered into certain Account Security Agreements with the Borrower and
others, pursuant to which, among other things, the Account SPVs have granted security
interests in the Facility Accounts held by them in order to secure obligations to remit moneys
to or at the direction of the Borrower.
	 
	(G)	 	Each of the Originators, the Servicer and the Subordinated Lender is (and any future
Originator will be) an Affiliate or direct or indirect Subsidiary of the Performance
Undertaking Provider, the Spanish Account SPV has been established at the request of the
Performance Undertaking Provider and the Originators in connection with the transactions
contemplated by the Transaction Documents, and the Performance Undertaking Provider expects to
receive substantial direct and indirect benefits from the transactions described above and the
other transactions contemplated by the Originator Sale Agreements, the Intermediate Transfer
Agreements, the Servicing Agreement, the Subordinated Loan Agreement and the other Transaction
Documents.
	 
	(H)	 	As an inducement for (a) the Purchasers to purchase or otherwise acquire Receivables and
Related Security from the Originators pursuant to the Originator Sale Agreements, (b) the
Borrower to purchase, make loans secured by or otherwise acquire Borrower Receivables
Interests pursuant to the Intermediate Transfer Agreements, (c) the Lenders to make Loans to
the Borrower under the Receivables Loan Agreement and (d) the Administrative Agent, the
Lenders and the other Secured Parties to participate in the transactions contemplated by the
Receivables Loan Agreement and the other Transaction Documents, the Performance Undertaking
Provider has agreed, on the terms provided in this Deed, to cause the due and punctual
performance by each of the Originators and the other Performance Parties of their respective
Obligations and to indemnify the Beneficiaries for any failure of such performance.

THIS DEED WITNESSES that:

	1.	 	DEFINITIONS
	 
	1.1	 	Terms in Receivables Loan Agreement
	 
	 	 	Unless otherwise defined herein, capitalised terms which are used in this Deed shall have
the meanings assigned to such terms in Clause 2.1 (Certain defined terms) of the Master
Schedule of Definitions, Interpretation and Construction, dated 18 July 2007, and signed
by the parties hereto and others for the purposes of identification (the “Schedule of
Definitions”). In the case of any inconsistency between such terms and the terms defined in
Clause 2.2 (Other defined terms) of this Deed, the terms defined in Clause 2.2 (Other
defined terms) of this Agreement shall prevail for all purpose of this Deed. The principles
of interpretation set forth in Clauses 2.2 (Other terms) and 2.3 (Computations of time
periods) of the Schedule of Definitions apply to this Deed as if fully set out herein.

2

 

	1.2	 	Other defined terms
	 
	 	 	As used in this Deed, capitalised terms defined in the preamble have the meanings as so
defined, and the following terms have the following meanings (such meanings to be equally
applicable to both the singular and plural forms of the terms defined):
	 
	 	 	“Indemnified Amounts” is defined in Clause 3 (General indemnity).
	 
	 	 	“Indemnified Party” is defined in Clause 3 (General indemnity).
	 
	2.	 	PERFORMANCE UNDERTAKING

	 	(a)	 	The Performance Undertaking Provider hereby agrees for the benefit of each of
the Beneficiaries to cause each Performance Party to pay and perform its Obligations
when and as due in accordance with the Transaction Documents.
	 
	 	(b)	 	If any Performance Party fails to pay or perform any of its Obligations when
and as due (and payable in respect of monetary Obligations) in accordance with the
Transaction Documents, then the Performance Undertaking Provider shall within three (3)
Business Days of demand perform, or cause the performance of, such Obligations, and
shall within three (3) Business Days of demand pay to the Administrative Agent for the
account of the relevant Beneficiaries, in same day funds, any such Obligations for the
payment of money.

	3.	 	GENERAL INDEMNITY
	 
	 	 	Without limiting any other rights that any Beneficiary or any of their respective officers,
directors, agents, employees, controlling Persons or Affiliates of any of the foregoing
(each an “Indemnified Party”) may have hereunder, under any other Transaction Document or
under applicable Law, the Performance Undertaking Provider hereby agrees to indemnify and
hold harmless each Indemnified Party from and against any and all damages, losses, claims,
liabilities, deficiencies, costs, disbursements and expenses, including interest, penalties,
amounts paid in settlement and reasonable attorneys’ fees and out-of-pocket expenses (all of
the foregoing being collectively referred to as “Indemnified Amounts”) incurred by any
Indemnified Party (including in connection with or relating to any investigation by an
Official Body, litigation or lawsuit (actual or threatened) or order, consent, decree,
judgment, claim or other action of whatever sort (including the preparation of any defence
with respect thereto)), in each case, arising out of or resulting from this Deed or any
other Transaction Document or any transaction contemplated hereby or thereby, excluding,
however (a) Indemnified Amounts to the extent that such Indemnified Amounts resulted from
the gross negligence, fraud or wilful misconduct on the part of such Indemnified Party, (b)
recourse (except as otherwise specifically provided in this Deed or any other Transaction
Document) for uncollectible Pool Receivables and Related Security with respect thereto, (c)
any Excluded Taxes, and (d) any Indemnified Amount to the extent the same has been fully and
finally paid in cash to such Indemnified Party pursuant to any other provision of this Deed
or any other Transaction Document.

3

 

	4.	 	TAXES

	 	(a)	 	Any and all payments by the Performance Undertaking Provider under this Deed
shall be made free and clear of and without deduction for any Indemnified Taxes or
Other Taxes; provided that if the Performance Undertaking Provider shall be required to
deduct any Indemnified Taxes or Other Taxes from any such payment, then (i) the sum
payable shall be increased as necessary so that after making all required deductions
(including deductions applicable to additional sums payable under this Clause 4) the
recipient of such payment receives an amount equal to the sum it would have received
had no such deductions been made, (ii) the Performance Undertaking Provider shall make
such deductions, and (iii) the Performance Undertaking Provider shall pay the full
amount deducted to the relevant Official Body in accordance with applicable Law.
	 
	 	(b)	 	If any Indemnified Tax or Other Tax is required to be deducted or withheld from
any payment or distribution made in respect of Receivables or Related Security
transferred pursuant to the French Intermediate Transfer Agreement, Italian
Intermediate Transfer Agreement or any payment or distributions made or deemed to be
made by the Intermediate Transferor pursuant thereto or pursuant to any other
Transaction Document, the Performance Undertaking Provider shall indemnify each
Indemnified Party within ten (10) days after written demand therefor, for the full
amount of any such Indemnified Taxes (including Indemnified Taxes imposed or asserted
on or attributable to amounts payable under this Clause) and any penalties, interest
and reasonable expenses arising therefrom or with respect thereto, whether or not such
Indemnified Taxes were correctly or legally imposed or asserted by the relevant
Official Body. A certificate as to the amount of such payment or liability delivered
to the Performance Undertaking Provider by an Indemnified Party, or by the
Administrative Agent on its own behalf or on behalf of another Indemnified Party, shall
be conclusive absent manifest error.
	 
	 	(c)	 	The Performance Undertaking Provider shall indemnify each Indemnified Party
within ten (10) days after written demand therefor, for the full amount of any
Indemnified Taxes paid by such Indemnified Party on or with respect to any payment by
or on account of any obligation of the Performance Undertaking Provider under this Deed
(including Indemnified Taxes imposed or asserted on or attributable to amounts payable
under this Clause 4) and any penalties, interest and reasonable expenses arising
therefrom or with respect thereto, whether or not such Indemnified Taxes were correctly
or legally imposed or asserted by the relevant Official Body. A certificate as to the
amount of such payment or liability delivered to the Performance Undertaking Provider
by an Indemnified Party, or by the Administrative Agent on its own behalf or on behalf
of another Indemnified Party, shall be conclusive absent manifest error.
	 
	 	(d)	 	As soon as reasonably practicable after any payment of Indemnified Taxes by the
Performance Undertaking Provider to an Official Body, the Performance Undertaking
Provider shall deliver to the applicable Indemnified Party the original or a certified
copy of a receipt issued by such Official Body

4

 

	 	 	 	evidencing such payment, a copy of the return reporting such payment or other
evidence of such payment reasonably satisfactory to such Indemnified Party.
	 
	 	(e)	 	Any Indemnified Party that is entitled to an exemption from or reduction of
withholding Tax under the Law of the jurisdiction in which the Performance Undertaking
Provider is located, or any treaty to which such jurisdiction is a party, with respect
to payments under this Deed shall deliver to the Performance Undertaking Provider (with
a copy to the Administrative Agent), at the time or times prescribed by applicable Law,
such properly completed and executed documentation prescribed by applicable Law, or
reasonably requested by the Performance Undertaking Provider, as will permit such
payments to be made without withholding or at a reduced rate.
	 
	 	(f)	 	If the Performance Undertaking Provider makes a payment to an Indemnified Party
under this Clause 4 and the relevant Indemnified Party determines that:

	 	(i)	 	a Tax Credit is attributable to such payment; and
	 
	 	(ii)	 	that Indemnified Party has obtained, utilised and retained that
Tax Credit, that Indemnified Party shall pay an amount to the Performance
Undertaking Provider which that Indemnified Party determines will leave it
(after that payment) in the same after-Tax position as it would have been in
had the payment not been required to be made by the Performance Undertaking
Provider. For the purpose of this Clause 4(f) “Tax Credit” means a credit
against, relief on remission for, or repayment of, any tax.

	 	 	 	This Clause 4 shall not be construed to require any Indemnified Party to make
available its Tax returns (or any other information relating to its Taxes which it
deems confidential) to the Performance Undertaking Provider or any other Person.
	 
	 	(g)	 	Notwithstanding anything in this Clause 4 to the contrary, the Performance
Undertaking Provider shall not be required to pay to any Indemnified Party any amount
pursuant to this Clause 4 to the extent (i) such amount has been fully and finally paid
in cash to such Indemnified Party pursuant to any other provision of this Deed or any
other Transaction Document or (ii) such amounts constitute Excluded Taxes.

	5.	 	AGREEMENT TO PAY STAMP TAXES
	 
	 	 	The Performance Undertaking Provider further agrees, as the principal obligor and not as a
surety, to pay to the Administrative Agent for the benefit of the relevant Beneficiaries
within three (3) Business Days of demand and in immediately available funds any and all
stamp duty, registration and other similar Taxes and fees payable in connection with the
execution, delivery, filing and recording of any of the Transaction Documents (or any
instrument or other document to be executed, delivered, filed or recorded under or in
connection with any of the Transaction Documents); and the Performance Undertaking Provider
agrees to save each Indemnified Party harmless from and against any liabilities with respect
to or resulting from any delay in paying or omission to pay such Taxes and fees.

5

 

	6.	 	OBLIGATIONS ABSOLUTE; WAIVER OF DEFENCES
	 
	 	 	The Performance Undertaking Provider’s obligations under this Deed are absolute,
unconditional and continuing and are in no way conditioned upon any of the matters listed
below in this Clause 6. The obligations of the Performance Undertaking Provider under this
Deed will not be affected by an act, omission, matter or thing which, but for this Clause 6,
would reduce, release or prejudice any of its obligations under this Deed (without
limitation and whether or not known to it or any Beneficiary) including:

	 	(a)	 	any time, waiver or consent granted to, or composition with, any Transaction
Party or any other Person;
	 
	 	(b)	 	the release of any other Transaction Party or any other Person under the terms
of any composition or arrangement with any creditor of any Dana European Entity;
	 
	 	(c)	 	the taking, variation, compromise, exchange, renewal or release of, or refusal
or neglect to perfect, take up or enforce, any rights against, or security over assets
of, any Transaction Party or other Person or any non-presentation or non-observance of
any formality or other requirement in respect of any instrument or any failure to
realise the full value of any security;
	 
	 	(d)	 	any incapacity or lack of power, authority or legal personality of or
dissolution or change in the members or status of a Transaction Party or any other
Person;
	 
	 	(e)	 	any amendment, novation, supplement, extension, restatement (however
fundamental and whether or not more onerous) or replacement of any Transaction Document
or any other document or security including without limitation any change in the
purpose of, any extension of or any increase in any facility or the addition of any new
facility under any Transaction Document or other document or security;
	 
	 	(f)	 	any unenforceability, illegality or invalidity of any obligation of any Person
under any Transaction Document or any other document or security; or
	 
	 	(g)	 	any insolvency or similar proceedings.

	 	 	Without prejudice to the generality of this Clause 6, the Performance Undertaking Provider
confirms that it intends this Deed shall extend from time to time to any (however
fundamental) variation, increase, extension or addition of or to any of the Transaction
Documents and/or any Obligation.
	 
	7.	 	IMMEDIATE RECOURSE; DEFERRAL OF RIGHTS

	 	(a)	 	The Performance Undertaking Provider waives any right it may have of first
requiring any Beneficiary (or any trustee or agent on its behalf) to proceed against or
enforce any other rights or security or claim payment from any Person before claiming
from the Performance Undertaking Provider under this Deed. This waiver applies
irrespective of any law or any provision of a Transaction Document to the contrary.

6

 

	 	(b)	 	Until the Final Payout Date and unless the Administrative Agent otherwise
directs, the Performance Undertaking Provider will not exercise any rights which it may
have by reason of performance by it of its obligations under the Finance Documents:

	 	(i)	 	to be indemnified by the Borrower, the Spanish Account SPV or
any other Dana European Entity;
	 
	 	(ii)	 	to claim any contribution from any other guarantor of any
obligations of the Borrower, the Spanish Account SPV or any other Dana European
Entity under the Transaction Documents; and/or
	 
	 	(iii)	 	to take the benefit (in whole or in part and whether by way of
subrogation or otherwise) of any rights of the Beneficiaries under the
Transaction Documents or of any other guarantee or security taken pursuant to,
or in connection with, the Transaction Documents by any Beneficiary.

	8.	 	ADDITIONAL SECURITY

	 	(a)	 	This Deed shall be in addition to any other guarantee, indemnity or other
security for the Obligations, and shall not be rendered unenforceable by the invalidity
of any such other guarantee, indemnity or security.
	 
	 	(b)	 	In the event that acceleration of the time for payment of any of the
Obligations is stayed upon the insolvency, bankruptcy, arrangement or reorganisation of
any Performance Party or for any other reason with respect to any Performance Party,
all such amounts then due and owing with respect to the Obligations under the terms of
the Transaction Documents, or any other agreement evidencing, securing or otherwise
executed in connection with the Obligations, shall be immediately due and payable by
the Performance Undertaking Provider.

	9.	 	REPRESENTATIONS AND WARRANTIES
	 
	9.1	 	Representations and warranties of the Performance Undertaking Provider
	 
	 	 	The Performance Undertaking Provider hereby represents and warrants to each Beneficiary, as
of the date of this Deed that:

	 	(a)	 	the Performance Undertaking Provider (i) is a limited liability company duly
organised and validly existing under the laws of its jurisdiction of organisation, and
(ii) has the power and authority and all licences, authorisations, consents and
approvals required to perform its obligations under the Transaction Documents to which
it is a party and to carry on its business in each jurisdiction in which its business
is now conducted unless the failure to have such power, authority, licences,
authorisations, consents and approvals would not reasonably be expected to have a
Material Adverse Effect;

7

 

	 	(b)	 	the execution, delivery and performance by the Performance Undertaking Provider
of this Deed and any other Transaction Document to which it is a party (i) are within
the Performance Undertaking Provider’s corporate powers, (ii) have been duly authorised
by all necessary corporate action, and (iii) do not contravene or constitute a default
under (A) its Organic Documents, (B) any applicable Law, (C) any contractual
restriction binding on or affecting the Performance Undertaking Provider or its
property or (D) any order, writ, judgment, award, injunction or decree which is valid
and binding on or affecting the Performance Undertaking Provider or its property,
except in each case where any such contravention or default would not reasonably be
expected to have a Material Adverse Effect, and (iv) do not result in or require the
creation or imposition of any Adverse Claim (other than with respect to any Receivable
or Facility Account, Permitted Adverse Claims, and with respect to any other assets of
the Performance Undertaking Provider, Permitted Encumbrances) upon or with respect to
its present or future assets including any Pool Receivable, any Related Security, any
Collateral or any Facility Account;
	 
	 	(c)	 	no authorisation or approval or other action by, and no notice to or filing or
registration with, any Official Body or official thereof or any third party is required
for the due execution, delivery and performance by the Performance Undertaking Provider
of this Deed or any other Transaction Document to which it is a party or any other
document to be delivered by it hereunder or thereunder, except for the actions taken or
referred to in Schedule 2 (Conditions precedent documents) to the Receivables Loan
Agreement, all of which have been (or on or before the Closing Date will have been)
duly made or taken, as the case may be, and are in full force and effect, except where
the failure to have obtained any such authorisation or approval or taken any such
action or made any such filing, notice or registration would not have a Material
Adverse Effect;
	 
	 	(d)	 	this Deed and each of the other Transaction Documents to which it is a party
constitutes the legal, valid and binding obligation of the Performance Undertaking
Provider enforceable against the Performance Undertaking Provider in accordance with
its terms, subject to the Legal Reservations;
	 
	 	(e)	 	all non-verbal information, data, exhibits, documents, books, records and
reports furnished by or on behalf of the Performance Undertaking Provider in connection
with this Deed, any other Transaction Document or any transaction contemplated hereby
or thereby is complete and accurate in all material respects as of its date and no such
item contains any untrue statement of a material fact or omits to state a material fact
necessary in order to make the statements contained therein, in light of the
circumstances under which they were made, not misleading. All financial statements
which have been furnished by or on behalf of the Performance Undertaking Provider, the
Servicer or any Originator (i) have been prepared in accordance with, in the case of
the Performance Undertaking Provider and the Servicer, Modified GAAP or, in the case of
each Originator, GAAP consistently applied and (ii) fairly present, in all material
aspects, the financial condition of the Performance Undertaking Provider, the Servicer
or the relevant Originator, as

8

 

	 	 	 	the case may be, and in each case, if applicable, its consolidated Subsidiaries or,
as the case may be, the Dana European Entities on an aggregated basis, as of the
dates set forth therein and the results of any operations of the Performance
Undertaking Provider, the Servicer or the relevant Originator, as the case may be,
and in each case, if applicable, its consolidated Subsidiaries for the periods ended
on such dates;
	 
	 	(f)	 	there are no actions, suits, investigations, litigation or proceedings at law
or in equity or by or before any Official Body now pending or in arbitration or, to the
Performance Undertaking Provider’s knowledge, threatened against or affecting the
Performance Undertaking Provider or any of its Subsidiaries or any of its or their
business, revenues or other property (i) which question the validity of this Deed or
any other Transaction Document to which it is a party or any of the transactions
contemplated hereby or thereby (excluding any litigation or proceeding against any
Obligor) or (ii) which, individually or in the aggregate, are reasonably likely to be
adversely determined and if so determined would reasonably be expected to have a
Material Adverse Effect. The Performance Undertaking Provider is not in default or
violation of any valid and binding order, judgement or decree of any Official Body or
arbitrator which would reasonably be expected to have a Material Adverse Effect;
	 
	 	(g)	 	the Performance Undertaking Provider has (i) timely filed or caused to be filed
all material Tax returns required to be filed, and (ii) paid or made adequate provision
for the payment of all Taxes, assessments and other governmental charges due and
payable by it, except (A) any such Taxes, assessments or other governmental charges
that are being contested in good faith by appropriate proceedings and for which the
Performance Undertaking Provider has set aside in its books adequate reserves in
accordance with GAAP as reasonably determined by the Performance Undertaking Provider,
or (B) to the extent that such failure to do so would not reasonably be expected to
have a Material Adverse Effect;
	 
	 	(h)	 	the direct and indirect benefits to the Performance Undertaking Provider from
the transactions contemplated by the Transaction Documents provide fair consideration
and reasonably equivalent value to the Performance Undertaking Provider for the
obligations it undertakes pursuant to this Deed;
	 
	 	(i)	 	the Performance Undertaking Provider’s obligations under this Deed and the
other Transaction Documents to which it is a party rank at least pari passu with all of
its unsecured unsubordinated Indebtedness;
	 
	 	(j)	 	the Performance Undertaking Provider either has, or otherwise has adequate
means to obtain from such Performance Party, information concerning the financial
condition of each Performance Party, and it is not relying on any Beneficiary to
provide any such information;
	 
	 	(k)	 	neither the Performance Undertaking Provider nor any other Dana European Entity
has any Indebtedness (other than Permitted Indebtedness);

9

 

	 	(l)	 	neither the Performance Undertaking Provider nor any other Dana European Entity
has created or granted any Adverse Claim (other than, with respect to any Receivable or
Facility Account, Permitted Adverse Claims, or, with respect to any of its other
assets, Permitted Encumbrances) upon or with respect to its present or future assets;
	 
	 	(m)	 	for the purposes of the EU Insolvency Regulation, the Performance Undertaking
Provider’s centre of main interest (as that term is used in Article 3(1) of the EU
Insolvency Regulation) is situated in the Grand Duchy of Luxembourg and it has no
“establishment” (as that term is used in Article 2(h) of the EU Insolvency Regulation)
in any other jurisdiction;
	 
	 	(n)	 	neither Performance Undertaking Provider nor any other Dana European Entity is,
or will become, a borrower, guarantor or otherwise incur any obligation under or in
connection with the DIP;
	 
	 	(o)	 	neither the Performance Undertaking Provider nor any other Dana European
Entity, nor any of their respective assets, have been or will be consolidated with
those of Dana Corporation or any other Affiliate of Dana Corporation that is subject to
an Event of Bankruptcy under the Insolvency Laws of the U.S. or any State thereof;
	 
	 	(p)	 	neither the Performance Undertaking Provider nor any other Dana European Entity
has, or will have, a place of business (other than Spicer Gelenkwellenbau GmbH) or any
material property located in the U.S.;
	 
	 	(q)	 	the execution, delivery and performance by any Transaction Party of any
Transaction Document to which it is a party do not contravene or constitute a default
under the DIP;
	 
	 	(r)	 	for so long as the DIP is in force, the Aggregate Principal Balance constitutes
Debt for the purposes of the DIP and that the aggregate outstanding principal amount of
the Dollar Equivalent of the Aggregate Principal Balance and all other Debt of Foreign
Subsidiaries owing to third parties will not at any time exceed $400,000,000 (excluding
Debt of Canadian Subsidiaries of Dana Corporation under the Canadian Revolving
Facility). For the purposes of this Clause 9(r) the terms “Canadian Revolving
Facility”, “Canadian Subsidiary”, “Debt” and “Foreign Subsidiary” have the meaning
specified in the DIP;
	 
	 	(s)	 	no Material Adverse Effect has occurred;
	 
	 	(t)	 	clearance statements have been issued by tPR, for the purposes of Sections
42(2) and 46(2) of the Pensions Act, in relation to all the U.K. Pension Schemes (the
“Clearance Statements”), such that in the opinion of tPR, and in the circumstances
described in the application made for the purposes of the Clearance Statements:

	 	(i)	 	no Dana European Entity would be subject to a contribution
notice as a result of the satisfaction of either, or both of, Sections 42(2)(a)
and 42(2)(b) of the Pensions Act; and

10

 

	 	(ii)	 	no Dana European Entity would be the subject of a financial
support direction as a result of the satisfaction of any, or all of, Sections
46(2)(a), 46(2)(b) and 46(2)(c) of the Pensions Act;

	 	(u)	 	all of the information contained in the applications made in respect of the
Clearance Statements as to the circumstances of each of the Dana European Entities are
true and accurate, and that there are no material omissions of relevant information in
the applications made for the Clearance Statements;
	 
	 	(v)	 	U.K. PensionCo has no creditors other than the U.K. Pension Schemes or the
United Kingdom Board of the Pension Protection Fund, as the case may be; and
	 
	 	(w)	 	the company voluntary arrangement of U.K. PensionCo has been implemented in
accordance with its terms and completed (as such term is used in Rule 1.29 Insolvency
Rules 1986) and all conditions thereunder have been satisfied.

	9.2	 	Times when representations made

	 	(a)	 	All the representations and warranties in this Clause 9 (Representations and
Warranties) are deemed to be made by the Performance Undertaking Provider on the
Closing Date and as of the date of each Borrowing and each Release under the
Receivables Loan Agreement.
	 
	 	(b)	 	The representations and warranties in Clause 9.1(e) are deemed to be made by
the Performance Undertaking Provider as of each Testing Date and on each date on which
any financial statements to be delivered pursuant to this Deed are delivered by the
Performance Undertaking Provider or in the case of all other non-verbal information,
data, exhibits, documents, books and records furnished by or on behalf of the
Performance Undertaking Provider in connection with this Deed on the date on which such
information, data, exhibits, documents, books and records are furnished.
	 
	 	(c)	 	Each representation or warranty deemed to be made after the Closing Date shall
be deemed to be made by reference to the facts and circumstances existing at the date
the representation or warranty is deemed to be made.

	10.	 	COVENANTS
	 
	 	 	Until the Final Payout Date:
	 
	10.1	 	Compliance with Laws, etc.
	 
	 	 	the Performance Undertaking Provider will comply in all material respects with all Laws to
which it may be subject if failure so to comply with such Laws would reasonably be expected
to have a Material Adverse Effect;
	 
	10.2	 	Reporting requirements
	 
	 	 	the Performance Undertaking Provider will furnish or cause to be furnished:

	 	(a)	 	Annual financial statements

11

 

	 	(i)	 	to the Administrative Agent as soon as available after the end
of each of its financial years and in any event within the period required for
the production and filing of such accounts under the law of its jurisdiction of
incorporation, the statutory accounts of each Dana European Entity and its
consolidated Subsidiaries as of the end of and for that financial year in each
case prepared in accordance with GAAP consistently applied, certified by a
Responsible Officer of that Dana European Entity and by its independent public
accountants; and
	 
	 	(ii)	 	to the Administrative Agent as soon as available after the end
of each of its financial years and in any event within 60 days after the end of
each of its financial years (commencing from the financial year ending 31
December 2008) the annual budget in respect of each Originator prepared on an
individual basis and in respect of the Dana European Entities prepared on an
aggregated basis.

	 	(b)	 	Quarterly and monthly financial statements

	 	(i)	(A) 	during the Trigger Period, to the Administrative Agent as
soon as available and in any event within 30 days after the end of each
calendar month, a statement of financial performance of each Originator
prepared on an individual basis and of the Dana European Entities prepared on
an aggregated basis as of the end of and for that calendar month as reported by
HFM in accordance with Modified GAAP consistently applied, with the statement
prepared on an aggregated basis being certified by a Responsible Officer of the
Performance Undertaking Provider; and
	 
	 	 	(B) 	otherwise, to the Administrative Agent as soon
as available and in any event within 45 days after the end of each of
its financial quarters, a statement of financial performance of each
Originator prepared on an individual basis and of the Dana European
Entities prepared on an aggregated basis as of the end of and for that
financial quarter as reported by HFM in accordance with Modified GAAP
consistently applied, with the statement prepared on an aggregated
basis being certified by a Responsible Officer of the Performance
Undertaking Provider

	 	(ii)	 	Each statement of financial performance provided hereunder in
respect of an Originator shall be accompanied by a certificate of solvency in
the Agreed Form signed by a Responsible Officer of that Originator.
	 
	 	(iii)	 	For the purposes of this Clause “a statement of financial
performance” shall include a profit and loss statement (in the case of any
statement of financial performance to be delivered hereunder in respect of an
Originator prepared on a manufacturing plant by manufacturing plant basis),
cash receipts and payments statement (prepared solely on an aggregated basis),
a balance sheet (in the case of any statement of financial performance to be
delivered hereunder in respect of an Originator, prepared on an aggregated
basis with respect

12

 

	 	 	 	to the manufacturing plants owned or operated by such Originator) and a
management commentary on the financial results shown in the statement of
financial performance prepared on an aggregated basis (which management
commentary shall include commentary on any material change in the financial
results of any individual Originator).

	 	(c)	 	Officer’s certificate
	 
	 	 	 	to the Administrative Agent and concurrently with each of the financial statements
to be delivered under Clauses 10.2(a) and (b), a certificate of a Responsible
Officer of the Performance Undertaking Provider stating that no Facility Event has
occurred and is continuing (or, if any such event is continuing, describing in
reasonable detail such event and the steps, if any, being taken or to be taken by
the Performance Undertaking Provider or any of the Performance Parties to remedy
such event).
	 
	 	(d)	 	Change in business
	 
	 	 	 	at least thirty (30) days prior to any substantial change in the general nature of
its business, to the Administrative Agent a written notice describing in reasonable
detail any such substantial change in the general nature of its business;
	 
	 	(e)	 	Notice of Facility Events
	 
	 	 	 	as soon as possible and in any event within three (3) Business Days after a
Responsible Officer of the Performance Undertaking Provider obtains knowledge of the
occurrence of any Facility Event, to the Administrative Agent a statement of a
Responsible Officer of the Performance Undertaking Provider setting forth details of
such Facility Event and, if applicable, the action that the Performance Undertaking
Provider or any of the Facility Parties has taken and proposes to take with respect
thereto;
	 
	 	(f)	 	Termination or Suspension of Originator Sale Agreement or Intermediate Transfer
Agreements
	 
	 	 	 	as soon as possible and in any event within three (3) Business Days after a
Responsible Officer of the Performance Undertaking Provider obtains knowledge of the
occurrence thereof, to the Administrative Agent notice that any Originator has
stopped selling or contributing Receivables originated by such Originator to the
Borrower or the Intermediate Transferor, as the case may be, pursuant to the related
Originator Sale Agreement to which such Originator is a party or any other Seller
Event thereunder;
	 
	 	(g)	 	Litigation; Material Adverse Effect
	 
	 	 	 	promptly after a Responsible Officer of the Performance Undertaking Provider obtains
knowledge thereof, to the Administrative Agent notice of the filing or commencement
of, or any written threat or notice of intention of any Person to file or commence,
any action, suit, litigation or proceeding, whether at law or in equity or by or
before any Official Body or in arbitration against, or any

13

 

	 	 	 	investigation by any Official Body that may exist with respect to any Transaction
Party, the Facility Accounts, the Transaction Documents or the transactions
contemplated thereby, in each case, that is reasonably likely to be determined
adversely and if so determined would reasonably be expected to have a Material
Adverse Effect.
	 
	 	(h)	 	Other information
	 
	 	 	 	as soon as reasonably practical and in any event no later than ten (10) Business
Days after a request by the Administrative Agent, furnish or cause to be furnished
to the Administrative Agent such other information with respect to (i) the Pool
Receivables, the Related Security, the Facility Accounts, the Collateral as the
Administrative Agent may from time to time reasonably request in writing (which
shall include an explanation of the reason for such request), (ii) any Facility
Event or Material Adverse Effect related to the Performance Undertaking Provider as
the Administrative Agent may from time to time reasonably request in writing (which
shall include an explanation of the reason for such request) or, (iii) its business,
operations and financial condition as the Administrative Agent may reasonably
require (subject to a written request which shall include an explanation of the
reason for such request).
	 
	 	(i)	 	Information relating to U.K. pensions
	 
	 	 	 	promptly after a Responsible Officer of the Performance Undertaking Provider obtains
knowledge thereof, to the Administrative Agent full details of:

	 	(i)	 	(A) any material changes in the circumstances described in; or

	 	(B)	 	any material omissions of relevant information
contained in,

	 	 	 	the applications made for the Clearance Statements; and
	 
	 	(ii)	 	any investigation or proposed investigation by tPR which may
lead to the issue of a “financial support direction” or “contribution notice”
(for the purposes of Part 1 of the Pensions Act) against any Dana European
Entity; and
	 
	 	(iii)	 	(A)    any “warning notice” for the purposes of Section 96(2) of
the Pensions Act;

	 	(B)	 	any “determination notice” for the purposes of
Section 96(2) or 98(2) of the Pensions Act in relation to a
Contribution Notice or Financial Support Direction for the purposes of
Part 1 of the Pensions Act 2004,

	 	 	 	issued by tPR to any Dana European Entity.

14

 

	 	(j)	 	Subordinated Loan book entries
	 
	 	 	 	to the Administrative Agent on a fortnightly basis evidence substantially in the
Agreed Form of book entry movement pursuant to the Subordinated Loan Agreement.

	10.3	 	Financial covenant

	 	(a)	 	The Performance Undertaking Provider will not permit the Fixed Charges Coverage
Ratio as at each Testing Date to be less than 1.25:1 unless within 3 Business Days
after the day on which the compliance certificate to be delivered pursuant to Clause
10.4 (Compliance Certificate) has been delivered showing that the Fixed Charged
Coverage Ratio is less than 1.25:1 a Person (other than the Borrower, the Spanish
Account SPV or any Dana European Entity) invests in the Dana European Legal Group or
deposits into the Borrower Operating Account (Principal) an amount such that a
recalculation of the Fixed Charges Coverage Ratio as at such Testing Date, treating the
amount of such investment or deposit as part of Adjusted EBITDA, would be at least
1.25:1.
	 
	 	(b)	 	If, as at such Testing Date, as a result of applying the necessary Covenant
Correction Amount to the calculation of Maximum Aggregate Principal Balance the
Aggregate Principal Balance exceeds the Maximum Aggregate Principal Balance on such
date, the Borrower shall make a prepayment of the Loan in accordance with Clause
2.5(a)(ii) (Payment and prepayment of Loans) of the Receivables Loan Agreement on the
same day as the Covenant Correction Amount is invested or deposited in accordance with
Clause 10.3(a) and such prepayment must be funded wholly from cash constituting the
whole or part of the applicable Covenant Correction Amount.
	 
	 	(c)	 	The Performance Undertaking Provider will not permit the Fixed Charges Coverage
Ratio as at each Testing Date to be less than 1.15:1.

	10.4	 	Compliance Certificate

	 	(a)	 	The Performance Undertaking Provider will furnish to the Administrative Agent
within 30 days, after each Testing Date a compliance certificate in a form reasonably
acceptable to the Administrative Agent, setting out (in reasonable detail) computations
as to compliance with the financial covenant set out in Clause 10.3 as at the date as
such Testing Date;
	 
	 	(b)	 	Each compliance certificate shall be signed by a Responsible Officer of the
Performance Undertaking Provider.

	10.5	 	Disposals
	 
	 	 	the Performance Undertaking Provider will not, and will procure that no other Dana European
Entity will, either in a single transaction or in a series of transactions and whether
related or not and whether voluntarily or involuntarily, dispose of all or any part of its
or their assets save for any Permitted Disposal;

15

 

	10.6	 	Financial Indebtedness
	 
	 	 	the Performance Undertaking Provider will not, and will procure that no other Dana European
Entity will, incur or permit to be outstanding any Indebtedness or enter into any
off-balance sheet financing arrangement other than Indebtedness incurred under the
Transaction Documents and any Permitted Indebtedness;

	10.7	 	Loans out
	 
	 	 	the Performance Undertaking Provider will not, and will procure that no other Dana European
Entity will, make any loans or grant any credit other than Permitted Loans;
	 
	10.8	 	Dividends and share redemption
	 
	 	 	the Performance Undertaking Provider shall not (and will ensure that no other Dana European
Entity will):

	 	(a)	 	declare, make or pay any dividend, charge, fee or other distribution (or
interest on any unpaid dividend, charge, fee or other distribution) (whether in cash or
in kind) on or in respect of its share capital (or any class of its share capital);
	 
	 	(b)	 	repay or distribute any dividend or share premium reserve;
	 
	 	(c)	 	pay or allow any other Dana European Entity to pay any management, advisory or
other fee to or to the order of any of the shareholders of the Performance Undertaking
Provider; or
	 
	 	(d)	 	redeem, repurchase, defease, retire or repay any of its share capital or
resolve to so do,

	 	 	other than Permitted Distributions;
	 
	10.9	 	Mergers, Investments, etc.

	 	(a)	 	the Performance Undertaking Provider shall ensure that each Originator (other
than any Spanish Originator until such time as it becomes a direct or indirect
Subsidiary of the Performance Undertaking Provider) shall at all times be a direct or
indirect Subsidiary of the Performance Undertaking Provider and that each Spanish
Originator (which for the time being is not a direct or indirect Subsidiary of the
Performance Undertaking Provider) shall at all times be a direct or indirect Subsidiary
of Dana Corporation;
	 
	 	(b)	 	except to the extent expressly permitted by the Transaction Documents, the
Performance Undertaking Provider will not, and will procure that no other Dana European
Entity will, liquidate or dissolve or merge with or into or consolidate with or into
any Person, or enter into any corporate restructuring, or convey, transfer, lease or
otherwise dispose of (whether in one transaction or in a series of transactions), all
or substantially all of its property (whether now owned or hereafter acquired) to any
Person, or acquire all or part of the business or undertaking of a Person, or acquire
any Equity Interest of a Person, or enter into any joint venture or partnership
agreement with, any Person other than a Permitted Transaction;

16

 

	10.10	 	Taxes
	 
	 	 	the Performance Undertaking Provider will file all Tax returns and reports required by Law
to be filed by it and promptly pay all Taxes and governmental charges at any time then due
and payable by it, except to the extent such Taxes or governmental charges are being
contested in good faith by appropriate proceedings and the Performance Undertaking Provider
has set aside in its books adequate reserves in accordance with Modified GAAP as reasonably
determined by the Performance Undertaking Provider or the failure to do so would not
reasonably be expected to have a Material Adverse Effect. The Performance Undertaking
Provider will pay when due any Taxes payable in connection with the Pool Receivables,
Related Security with respect thereto, the Facility Accounts and the other Collateral,
exclusive of Taxes constituting Excluded Taxes or Taxes payable and actually previously paid
by another Transaction Party except to the extent such Taxes are being contested in good
faith by appropriate proceedings and the Performance Undertaking Provider has set aside in
its books adequate reserves in accordance with Modified GAAP as reasonably determined by the
Performance Undertaking Provider or the failure to do so would not reasonably be expected to
have a Material Adverse Effect;
	 
	10.11	 	Sales, liens, etc.
	 
	 	 	the Performance Undertaking Provider will not, and will procure that no other Dana European
Entity will, sell, assign (by operation of law or otherwise) or otherwise dispose of, or
create or suffer to exist any Adverse Claim (except for, in the case of any Receivable or
Facility Account, Permitted Adverse Claims, and in the case of any other assets of any Dana
European Entity, Permitted Encumbrances) upon or with respect to its assets to secure any
indebtedness of any person (including, upon or with respect to the Pool Receivables, the
Related Security with respect thereto or any other Collateral, the Facility Accounts or any
other asset of the Transaction SPVs, or any of its rights, title, interest in, to and under
any of them (including any right to receive income in respect thereof)) except pursuant to,
and in accordance with, the Transaction Documents;
	 
	10.12	 	Change in business
	 
	 	 	the Performance Undertaking Provider will not make any substantial change in the general
nature of its business without the prior written consent of the Administrative Agent, except
for any such change:

	 	(a)	 	that would not (i) impair the collectibility of any Pool Receivable in any
material respect, (ii) otherwise reasonably be expected to have a Material Adverse
Effect, or (iii) materially adversely affect the interests or remedies of any
Beneficiary; or
	 
	 	(b)	 	as required by applicable Law;

	10.13	 	Amendments
	 
	 	 	the Performance Undertaking Provider will not make any material amendment or other
modification to any Transaction Document to which it is a party except in

17

 

	 	 	accordance with the amendment provisions thereof (which will require the written consent of
the Administrative Agent);
	 
	10.14	 	Organic Documents
	 
	 	 	the Performance Undertaking Provider will not amend, modify, change or repeal any of its
Organic Documents, unless such amendment, modification, change or repeal would not
reasonably be expected to have a Material Adverse Effect;
	 
	10.15	 	Licences, etc.
	 
	 	 	the Performance Undertaking Provider will maintain in full force and effect all licences,
approvals, authorisations, consents, registrations and notifications which are at any time
required in connection with the performance of its duties and obligations hereunder and
under the other Transaction Documents to which it is a party, except to the extent failure
to do so would not reasonably be expected to have a Material Adverse Effect;
	 
	10.16	 	Separateness
	 
	 	 	the Performance Undertaking Provider will take such actions as may reasonably be required to
maintain each Transaction SPV as a legal entity separate and apart from the Performance
Undertaking Provider, any Affiliate or Subsidiary thereof and any other Person; and
	 
	10.17	 	Change in accountants or accounting policies
	 
	 	 	the Performance Undertaking Provider will promptly notify the Administrative Agent of any
change in its accountants or material change in its accounting policy.
	 
	11.	 	SUBROGATION; SUBORDINATION
	 
	11.1	 	Notwithstanding anything to the contrary contained herein, the Performance Undertaking
Provider:

	 	(a)	 	will not exercise or assert until the Final Payout Date any rights of
subrogation (whether contractual, at law or in equity or otherwise) to the claims of
any Beneficiary against any Performance Party, and until the Final Payout Date hereby
waives any and all contractual, statutory or legal or equitable rights of contribution,
reimbursement, indemnification and similar rights and claims which the Performance
Undertaking Provider might now have or hereafter acquire against any Performance Party
in connection with, or as a result of, the existence or performance of the Performance
Undertaking Provider’s obligations under this Deed;
	 
	 	(b)	 	will not claim any setoff, recoupment or counterclaim against any Performance
Party in respect of any liability of the Performance Undertaking Provider to any
Performance Party until the Final Payout Date; and
	 
	 	(c)	 	waives any benefit of and any right to participate in any collateral security
which may be held by any Beneficiary (or its assigns).

18

 

	11.2	 	The payment of any amounts due with respect to any indebtedness of any Performance Party now
or hereafter owed to the Performance Undertaking Provider is hereby subordinated to the
Obligations. The Performance Undertaking Provider agrees that, after the occurrence of any
default in the payment or performance of any of the Obligations, until the Final Payout Date,
the Performance Undertaking Provider will not demand, sue for or otherwise attempt to collect
any indebtedness of any Performance Party to the Performance Undertaking Provider. If,
notwithstanding the foregoing sentence, the Performance Undertaking Provider collects,
enforces or receives any amounts in respect of such indebtedness before the Final Payout Date,
it shall collect, enforce or receive and hold such amounts as trustee for the Beneficiaries
and shall pay such amounts to the Administrative Agent on behalf of the Beneficiaries on
account of the Obligations, without affecting in any manner the liability of the Performance
Undertaking Provider under the other provisions of this Deed.
	 
	11.3	 	The provisions of this Clause shall be supplemental to and not in derogation of any rights
and remedies of any Beneficiary under any separate subordination agreement which any
Beneficiary may at any time and from time to time enter into with the Performance Undertaking
Provider.
	 
	12.	 	TERMINATION; REINSTATEMENT
	 
	 	 	The Performance Undertaking Provider’s obligations under this Deed shall continue in full
force and effect until the Final Payout Date; provided, that this Deed shall continue to be
effective or shall be reinstated, as the case may be, if at any time payment or other
satisfaction of any of the Obligations is rescinded or must otherwise be restored or
returned upon the bankruptcy, insolvency, arrangement or reorganisation of any Performance
Party or otherwise, as though such payment had not been made or such other satisfaction had
not occurred and each Beneficiary shall be entitled to recover the value or amount of that
Obligation from each Transaction Party, as though such payment has not been made or such
other satisfaction had not occurred.
	 
	13.	 	EFFECT OF BANKRUPTCY
	 
	 	 	This Deed shall survive the bankruptcy, insolvency, reorganisation or arrangement of any
Performance Party and the commencement of any case or proceeding by or against any
Performance Party under any applicable bankruptcy, insolvency or similar Law of any
jurisdiction. No stay of actions or remedies under any applicable bankruptcy, insolvency or
similar Law of any jurisdiction to which any Performance Party is subject shall postpone the
obligations of the Performance Undertaking Provider under this Deed, except to the extent
required by Law.
	 
	14.	 	JUDGMENT CURRENCY
	 
	14.1	 	If, for the purpose of obtaining judgment in any court, it is necessary to convert a sum
owing under this Deed in one currency into another currency, each party hereto agrees, to the
fullest extent that it may effectively do so, that the rate of exchange used shall be that at
which in accordance with normal banking procedures in the relevant jurisdiction the first
currency could be purchased with such other currency on the Business Day immediately preceding
the day on which final judgment is given.

19

 

	14.2	 	The obligations of the Performance Undertaking Provider in respect of any sum due to any
Beneficiary shall, notwithstanding any judgment in a currency (the “Judgment Currency”) other
than the currency in which such sum is stated to be due under this Deed (the “Agreement
Currency”), be discharged only to the extent that, on the Business Day following receipt by
that Beneficiary of any sum adjudged to be so due in the Judgment Currency, the Beneficiary
may in accordance with normal banking procedures in the relevant jurisdiction purchase the
Agreement Currency with the Judgment Currency; if the amount of the Agreement Currency so
purchased is less than the sum originally due to the Beneficiary in the Agreement Currency,
the Performance Undertaking Provider agrees, as a separate obligation and notwithstanding any
such judgment, to indemnify the Beneficiary against such loss. The obligations of the
Performance Undertaking Provider contained in this Clause shall survive the termination of
this Deed and the payment of all other amounts owing under this Deed.
	 
	15.	 	BENEFIT OF DEED
	 
	15.1	 	This Deed shall be binding upon the Performance Undertaking Provider, its successors and
permitted assigns, and shall inure to the benefit of and be enforceable by each Beneficiary
and its successors and assigns.
	 
	15.2	 	No Person other than the Performance Undertaking Provider and the Beneficiaries and their
respective successors and assigns shall have any rights under this Deed pursuant to the
Contracts (Rights of Third Parties) Act 1999.
	 
	16.	 	ASSIGNMENT
	 
	16.1	 	The Performance Undertaking Provider may not assign or transfer any of its obligations under
this Deed without the prior written consent of the Administrative Agent and the Required
Lenders.
	 
	16.2	 	The Intermediate Transferor may assign or otherwise transfer its rights under this Deed to
the Borrower pursuant to each Intermediate Transfer Agreement to which it is a party. The
Borrower may assign or otherwise transfer its rights under this Deed to the Administrative
Agent on behalf of the Secured Parties.
	 
	16.3	 	The Performance Undertaking Provider acknowledges that the Borrower has assigned will assign
to the Administrative Agent, for the benefit of the Secured Parties, all of its rights,
remedies, powers and privileges under this Deed, and that each Secured Party may further
assign such rights, remedies, powers and privileges to the extent permitted in the Receivables
Loan Agreement and the other Transaction Documents. The Performance Undertaking Provider
agrees that the Administrative Agent, as the assignee of the Borrower, shall have the right to
enforce this Deed and to exercise directly all of the Borrower’s rights and remedies under
this Deed (including the right to give or withhold any consents or approvals to be given or
withheld by the Borrower under this Deed).
	 
	17.	 	AMENDMENTS AND WAIVERS
	 
	 	 	No amendment or waiver of any provision of this Deed and no consent to any departure by the
Performance Undertaking Provider from any provision of this Deed

20

 

	 	 	shall be effective unless the same is in writing and signed by the Administrative Agent
(with the consent or at the direction of the Required Lenders) and, in the case of an
amendment, by the Borrower, the Intermediate Transferor and the Performance Undertaking
Provider; provided that no amendment, waiver or consent, unless in writing and signed by the
Intermediate Transferor, the Borrower and the Administrative Agent (with the consent or at
the direction of all the Lenders), shall release the Performance Undertaking Provider from
its obligations under this Deed. No failure on the part of any Beneficiary to exercise, and
no delay in exercising, any power, right or remedy under this Deed shall operate as a waiver
of that power, right or remedy; nor shall any single or partial exercise of any power, right
or remedy under this Deed preclude any other or further exercise of that power, right or
remedy or the exercise of any other power, right or remedy. The rights and remedies herein
provided shall be cumulative and non-exclusive of any rights and remedies provided by law.
	 
	18.	 	NOTICES
	 
	 	 	All communications and notices provided for under this Deed shall be provided in the manner
and to the addresses set out in Schedule 1 (Address and Notice Information) to the Schedule
of Definitions.

21

 

	19.	 	GOVERNING LAW, JURISDICTION AND PROCESS
	 
	19.1	 	This Deed and the rights and obligations of the parties hereto shall be governed by and
construed in accordance with English law.
	 
	19.2	 	Each party hereto agrees that the courts of England shall have jurisdiction to hear and
determine any suit, action or proceeding, and to settle any dispute, which may arise out of or
in connection with this Deed, any other Transaction Document or the transaction contemplated
hereby or thereby and, for such purposes, irrevocably submits to the non-exclusive
jurisdiction of such courts.
	 
	19.3	 	Each of the parties hereto irrevocably waives any objection which it might now or hereafter
have to the courts referred to in Clause 19.2 being nominated as the forum to hear and
determine any suit, action or proceeding, and to settle any dispute, which may arise out of or
in connection with this Deed, any other Transaction Document or the transactions contemplated
hereby or thereby and agrees not to claim any such court is not a convenient or appropriate
forum.
	 
	19.4	 	Each of the parties hereto (other than such parties as are registered in England and Wales or
otherwise have a place of business in England and Wales) agrees that the process by which any
suit, action or proceeding is begun may be served on it by being delivered in connection with
any suit, action or proceeding in England to the English Process Agent for such party.
	 
	19.5	 	The submission to the jurisdiction of the courts referred to in Clause 19.2 shall not (and
shall not be construed so as to) limit the right of the Administrative Agent to take
proceedings against the Performance Undertaking Provider or any of its respective property in
any other court of competent jurisdiction nor shall the taking of proceedings in any other
jurisdiction preclude the taking of proceedings in any other jurisdiction, whether
concurrently or not.
	 
	20.	 	NO PROCEEDINGS; LIMITED RECOURSE

	 	(a)	 	Each of the parties hereto agrees that (i) it will not institute against, or
join any other Person in instituting against, any Transaction SPV any proceeding of the
type referred to in the definition of Event of Bankruptcy so long as there shall not
have elapsed two years plus one day since the Final Payout Date (or, in the case of an
Account SPV, the Seller Payout Date with respect to all Originators related to such
Account SPV); and (ii) notwithstanding anything contained herein or in any other
Transaction Document to the contrary, the obligations of each Transaction SPV under the
Transaction Documents are solely the corporate obligations of such Transaction SPV and
shall be payable solely to the extent of funds which are received by such Transaction
SPV pursuant to the Transaction Documents and available for such payment in accordance
with the terms of the Transaction Documents and shall be non-recourse other than with
respect to such available funds and, without limiting Clause 20, if ever and until such
time as such Transaction SPV has sufficient funds to pay such obligation, shall not
constitute a claim against such Transaction SPV.
	 
	 	(b)	 	No recourse under any obligation, covenant or agreement of any Transaction SPV
contained in this Deed or any other Transaction Document shall be had

22

 

	 	 	 	against any incorporator, stockholder, officer, director, member, manager, employee
or agent of such Transaction SPV by the enforcement of any assessment or by any
legal or equitable proceeding, by virtue of any statute or otherwise; it being
expressly agreed and understood that this Deed and the other Transaction Documents
are solely a corporate obligation of such Transaction SPV, and that no personal
liability whatever shall attach to or be incurred by any incorporator, stockholder,
officer, director, member, manager, employee or agent of any Transaction SPV or any
of them under or by reason of any of the obligations, covenants or agreements of
such Transaction SPV contained in this Deed or any other Transaction Document, or
implied therefrom, and that any and all personal liability for breaches by any
Transaction SPV of any of such obligations, covenants or agreements, either at
common law or at equity, or by statute, rule or regulation, of every such
incorporator, stockholder, officer, director, member, manager, employee or agent is
hereby expressly waived as a condition of and in consideration for the execution of
this Deed; provided that the foregoing shall not relieve any such Person from any
liability it might otherwise have as a result of fraudulent actions taken or
fraudulent omissions made by them.

	21.	 	ENTIRE AGREEMENT; SEVERABILITY

	 	(a)	 	This Deed constitutes the entire agreement of the parties hereto with respect
to the matters set forth herein.
	 
	 	(b)	 	The rights and remedies provided in this Deed are cumulative and not exclusive
of any remedies provided by law or any other agreement.
	 
	 	(c)	 	In any action or proceeding in any jurisdiction, if the obligations of the
Performance Undertaking Provider under this Deed would otherwise be held or determined
to be avoidable, invalid or unenforceable on account of the amount of the Performance
Undertaking Provider’s liability under this Deed, then, notwithstanding any other
provision of this Deed to the contrary, the amount of such liability shall, without any
further action by the Performance Undertaking Provider or any Beneficiary, be
automatically limited and reduced to the highest amount that is valid and enforceable
as determined in such action or proceeding.
	 
	 	(d)	 	The provisions of this Deed are severable. Any provision of this Deed which is
prohibited or unenforceable in any jurisdiction shall be ineffective to the extent of
such prohibition or unenforceability in that jurisdiction without invalidating or
making unenforceable any of the remaining provisions in that jurisdiction or that
provision or any other provision in any other jurisdiction.

	22.	 	EXECUTION
	 
	 	 	This Deed may be executed in any number of counterparts, and by different parties on
separate counterparts, each of which shall be an original and all of which shall constitute
one and the same agreement. Delivery by facsimile transmission or by electronic file in a
format that is accessible by the recipient of a copy of an executed signature page of this
Deed shall operate as delivery of an executed counterpart of this Deed.

23

 

EXECUTION:

The parties have shown their acceptance of the terms of this Deed by executing it as a deed below.

24

 

Execution of Performance and Indemnity Deed:

The Performance Undertaking Provider

DANA INTERNATIONAL LUXEMBOURG SARL

	 	 	 
	Signature:

	 	/s/ Cornelia v. Künsberg
	 
	 	 
	Name:

	 	Cornelia von Künsberg
	 
	 	 
	Title/Authority: Authorised Director
and PoA Holder

S-1

 

Execution of Performance and Indemnity Deed:

The Borrower

Given under the Common Seal

of Dana Europe Financing (Ireland) Limited:

	 	 	 
	/s/ Frank Heffernan
 

	 	 
	 
	 	 
	Director
	 	 
	 
	 	 
	/s/ Michelle Hall
 

	 	 
	 
	 	 
	Secretary
	 	 
	Structured Finance Management (Ireland) Limited 

as Secretary

S-2

 

Execution of Performance and Indemnity Deed:

The Administrative Agent

Signed as a deed by Adam Johnson / Adrian Spurling as

attorney for GE LEVERAGED LOANS

LIMITED

	 	 	 
	/s/ Adam Johnson 	/s/ Adrian Spurling 	

under a power of attorney dated 22 March 2007 in
the presence of Richard Todd

                                                                     
            as

attorney for                                                             

	 	 	 
	/s/ Richard J. Todd
	 	 
	 

Name of witness: Richard Todd

	 	 

			
	Address of witness:	 	Mayer, Brown, Rowe & Maw LLP, 11 Pilgrim Street,
London EC4V GRW

Occupation of witness: Solicitor

S-3

 

Execution of Performance and Indemnity Deed:

The Intermediate Transferor

Signed as a deed by Adam Johnson / Adrian Spurling

as attorney for GE FACTOFRANCE SNC

	 	 	 
	/s/ Adam Johnson 

	/s/ Adrian Spurling
 

under a power of attorney dated 16 July 2007 in
the presence of Richard Todd

     
                                                                            as

attorney for                                                             

	 	 	 
	/s/ Richard J. Todd
	 	 
	 

Name of witness: Richard Todd

	 	 

			
	Address of witness:	 	Mayer, Brown, Rowe & Maw LLP, 11 Pilgrim Street,
London EC4V GRW

Occupation of witness: Solicitor

S-4

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